i imagine the tencent affect already factored in. you're looking at weakness across the basket cases at this point in time. brazil is worth noting. a few hours ago the central bank surprised us why setting rates at 6.5%. i guess it is a blessing for other em's, easing the cycle. a central bank, sing to take necessary steps. broadly speaking, when you look at yields, yields are up, curve is steeper. on the 10 year. acute political gyration story pushing yields higher. 16 basis points. 2.9%,lia closing in a highest level in 2.5 months. that is the story of markets so far. let's get you caught up with first word news. >> congressional leaders pressed china's top economic adviser to halt unfair trading practices at the start of a four day trip to washington. met ahead of discussions with secretary mnuchin. his visit followed talks in beijing that ended without agreement. leaders are in bulgaria for a summit that includes rising trade tensions, the latest exit issues and the iranian deal. trump's tariffs are due to hit on june 1. the lead

they are spending more at tencent than they are at rmb.out when the rmb & d was different. that becomes a margin issue. when you look at the numbers as reported, tencent puts their investment gains in under operating profit. in tencent business model, it becomes an operating item. what we saw during the quarter is a very small margin. andripped out those details basically do what i call a core operating margin, which is you know, the games and social without the outside investment income or interest income and we saw a slight drop, but there is an argument to be made that the investment income is not a one-off item. it is something ongoing that will be up or down, so you should consider it being part of the company and who they are, part of the dna of tencent. there is an argument to be made that i would not urge investors to do. the core business is what they can control. the outside of like the investments, they do not control that a lot. they should boosting was between the two before they make decisions that all origins are fantastic.

tencent, more on that in the moment.ng off most of the day in the asia-pacific, but down. yields are pushing up across developed markets. europe will be in the mix when things open later. bps on your german ten-year yield. we are also getting, the japanese gdp early on, price contraction in the economy. 3% to 3.5% is the new rate for the u.s. 10 year, which takes us to our emerging-market board. dollar-turkey, new record low. long story short, we had an interview with president erdogan. he wants more influence when it comes to monetary policy. moody says they are not using the tools they have to address the overheating economy. record low on the currency. a rate decision out of thailand later yields pushing up in indonesia. market opens in 30 minutes, the worst-performing market in the asia-pacific. yields in india also in focus. nomura says 8% is a matter of time. oil, june 6 as perhaps likely for the central bank. i know this board looks confusing to you, but short interest come a tencent out with earnings later on. so

tencent reports earnings after the bell. stocks slumping with a record back in january. if we look at our first bloomberg terminal chart, the shares have done much worse for the past seven weeks in a row. sinces the longest streak 2012. tencent investors are not used to being overtaken by the broader index. that's because the stock outperformed the benchmark every full year, ever since its listing back in 2004. the fault in the share price has wiped out about $80 billion in market capital. according to bloomberg intelligence, tencent's profits could disappoint expectations. that's because the money flowing kingsonor of gains -- could slow it down. bloomberg intelligence says tencent's margin will probably slide even more. we are seeing this since it's feedback in 2006. it could slide below the 47% -- 4.7% threshold. inis increasing spending payment related services, cloud computing, and artificial intelligence. this is to compete with alibaba. estimates for a 19% operating growth implying a 7% drop in margin for the first qu

record results, as you said for tencent.the owners of the popular messaging app which is similar to whatsapp. they reported a whopping profit of $3.7 billion in the first quarter, a jump of 61% in net profit. the stocks and shares in the market were soaring today. in hong kong, tencent‘s shares were up just under 5%. these results are way beyond what analysts or investors we re beyond what analysts or investors were estimating. the company attributed the record results to the mobile gaming business and also the growing advertising business. tencent is also known as china's facebook also said that its chat app has 1 facebook also said that its chat app has1 billion news accounts facebook also said that its chat app has 1 billion news accounts for the first time. this is significant because it is a big source of revenue for the company. recently stock had been taking a bit of a hit in the market. before the earnings report came out. analysts were worried about slowing growth and that the company was trying to spend its way out

how is the street getting tencent wrong every single time?of things to talk about, of course, as we unpack the result from tencent. >> we're unpacking tim packet of rising yield on emerging marketings. jaguar growth partner gary aribrand who has made he isier informsing. does he agree with some of the dire scenarios as outlined by carmen reinhart. >> there' a type we can alleviate that somewhat was ea as we look into the implications. he's there today. tomorrow, going into the end of the week. and also why he says cutting china's u.s. treasury holdings would be a good weapon to use. will they go there? that's about it for "daybreak: australia." the action next on daybreak say sha is next. this is bloomberg. mom, dad, can we talk? sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinit

they will duke it out with tencent. fundamentally strong massivethat has a presence in an incredible market. betty: should jeff bezos look over his shoulder? >> people forget they are in different businesses. alibaba is more of a marketplace business and ultimately they are not holding inventory. inventory in these companies is a cruel master. amazon is different. this is a market where it has been difficult for other technology companies to have a presence. the real place we will see competition is tencent. the place they will compete the most is around entertainment services. there are 140 million video streamers paying. that is more than netflix is number of subscribers. we will see this company has a especially as it expands into these businesses. yvonne: it seems in terms of these businesses that tencent and alibaba go into, each time a company pursues something the other seems to follow. think is winning despite -- winning this fight? did you need to do more consolidation? analogy is what is happening in the u.s.

what must tencent do now in terms of longer term strategy to maintain these kinds of numbers? going to be ha rd to kinds of numbers? it is going to be hard to maintain the growth rates they have seen. that is why they are looking diligently for a group driver with these investments. i have to question whether or not all of these very disparate investments represent a focused strategy for the company. it is cause for longer term worry. is this management team really the right team for this particular growth strategy? there is some cause for concern, but at least in the short term we know, they are hitting on all cylinders. he joined us earlierfrom hong kong. staying with earnings. cisco beats profit expectations. the us tech company ru ns expectations. the us tech company runs internet networks. it says net income gains, $2.7 billion. it has been investing heavily in cyber security and the internet of things to offset slowing sales in its hardware business. mothercare is set to reappoint a chief executive that left in april after disappointing financial results and a profit war

let's stay in asia, where online giant tencent has unveiled record profits thanks to a boom in mobiles from social media have also been soaring, helping make tencent one of asia's most valuable companies, worth around $500 billion. rico hizon is crunching the numbers for us. well, the stock prices soaring on the hong kong stock exchange at this hour after reported record quarterly products of $3.7 billion in the three months until march, beating a nalyst three months until march, beating analyst estimates. the stock price... well, investors are really very excited as the company's bottom line was boosted mainly by their mobile gaming business. its messaging service, which has been compared to whatsapp, has passed 1 billion active user accounts for the first time, which is significant given the app is an increasingly important source of revenues for tencent. before the earnings report, shares had been under pressure and we re shares had been under pressure and were down around 70% from record highs ends january. earnings reported in the fourth quarter of last year underwhelmed investor

we will talk more about tencent in the next hour or so. want to get on your radar another big interview coming up on "daybreak: asia." this is tomorrow. and it -- an interview with james bullard. that is at 7:00 a.m. hong kong time tomorrow. yvonne: the break on the tencent earnings outlook with the company stocks trading sideways these days despite stellar profits. what the concern is. this is bloomberg. ♪ ramy: welcome back. this is "daybreak: asia." chinese investors are unwinding their positions on tencent faster than ever. take a look at my bloomberg chart real quick. you can see this meteoric rise we have seen from tencent stock. clearly, you see this juggernaut 30the past decade soaring fold in the last 10 years. let's look at the performance. it has dropped more than 60% after reaching that peak january 23. to's bring in our analyst see what is going on now. they delivered strong first-quarter results, but ever since then we have seen the shares trade sideways. what is going on? >> there are several consequences the market might ha

tencent numbers. geopolitics. north korea has threatened to walk away from next month's meeting with president donald trump, because the united states made a "one-sided" to demand for the regime to surrender its nuclear weapons. let's go to dan. this is why to noise. -- is white noise. win.d trump needs this is this just out of the north korean playbook, "i'm in charge?" >> certainly, that is a possibility. the tensions have been rising for the past few weeks. what is this meeting going to accomplish? national security team is saying, north korea, you have to get rid of all your nuclear weapons in a verifiable way. north korea, says, we want a phased approach. youive you some things and give us some things and we have a negotiation. today, this is their strongest message to date. we will not give up our nuclear weapons and wait for you to give us sanctions. if that is what you want, we have to rethink this meeting. this day of reckoning was probably going to come. it will be interesting to see how the

tencent is investing in the foxconn industrial internet.spending the equivalent 1.8 million shares ahead of that upcoming listing. yvonne: xiaomi said to want a june 7 approval to list in hong kong. they could raise $1 billion u.s., and the smartphone maker hopes to help next month if the application is given green light. but this could slip given the volume of information demanded by the hong kong exchange. the listing could value xiaomi at $70 billion. we will talk more about these next. we are live in beijing for in depth discussion whether more companies will follow suit. those lost evaluations as well when it comes to daybreak australia. this is bloomberg. ♪ this is bloomberg. ♪ haidi: it is 8:30 a.m. in sydney where markets open for a brand-new trading week in 90 minutes time. showing negativity. it could be directionless even the u.s. markets traded very lightly on friday going into the long weekend for memorial day. u.k. markets also closed for bank holiday. not a great deal of direction as we have geopolitics and worries in the oil

chinese internet giant tencent was one of many high-profile firms releasing earnings reports. >> tencente skeptics after delivering a record quarterly profit and better than expected margins. investors were bracing for a squeeze from increased spending and investment. what exactly solidified these fair strong numbers? >> it is definitely the theme of today, because tencent has recorded a beat for net income revenue. if you look at their operating margin, it was an increase, and even beat estimates for growth margin. if you strip out the other one off items, their core margins actually dropped. and it looks like tencent is not going to let go. they are going to spend more, very committed to their online revenue, online streaming projects, online entertainment projects. they are going to expand into new retail. the spending spree looks like it will continue for the longer term. >> we are right in the middle of retail week with macy's reporting stronger earnings yesterday. walmart reporting that which fell short of estimates, and j.c. penney this morning missing estimates. >> is anyone surp

biggest tech names are buying into what promises to be the biggest ipo this year so far, alibaba and tencent are investing in foxconn and alibaba. they say they are spending the equivalent of $2.15 usd per share ahead of the upcoming. want a june said to 7 listing in hong kong which could raise about $10 billion usd.

chinese internet giant tencent was one of the high-profile firms releasing earnings reports. >> tencente skeptics after delivering a better quarter profit. what exactly solidified these strong numbers? >> it is definitely up today because it has not recorded a beat for net income revenue. if you look at their operating margin, it was an increase and even beat estimates for growth margin. if you strip out the other one off items, their core margins actually dropped. it looks like tencent is not going to let go. they are going to spend more and very committed to their online revenue, online streaming projects, and they are going to expand into new retail. the spending spree looks like it will continue for a long term. >> in the middle of retail week with macy's reporting stronger earnings yesterday, walmart reporting that which fell short of estimates, and jcpenney. >> is anyone surprised by these results? the reality, online is winning. if you have a winning digital platform, you are having winning in that area. walmart, their floorspace is what they need to be dealing with. they need to

youaring them with tencent, would value them at about $80 million.ue still comes from their smartphones. you would be comparing them to only $35 billion. this is all based off of 2017 figures. investors will be looking at the growth prospects for the future. that is something you need to take into consideration. haidi: it looks a little 10 u.s.. -- tenuous. thank you. coming up, we will find out if minister'san prime ruling alliance can withstand the 21 euro election winning streak. this is bloomberg. ♪ >> let's get back to the elections in malaysia. voting is underway. the current prime minister is facing off against his former mentor. a corruption scandal surrounds the vote. >> confidence has come back. there is a potential in setting up headquarters. we move forward. db issue of at the 1m things important to two malaysians, it is way down there. >> the coalition has extended decade run onsix power. malaysia growth hit eight high in 2017, and it is expecting with a bump this year, gdb expansion as high as 6%, but the country still faces economic ch

. >> it looks like tencent is not going to let go.hey are going to spend more. >> is anyone surprised by these results -- they haven't been reading the news or paying attention. julia: it's all straight ahead ." "bloomberg best ♪ hello and welcome, i'm julia chatterley and this is "bloomberg best" your weekly review of the most important business news and interviews from bloomberg television around the world. trade was on the agenda this week with talks between the u.s. .nd china settled in washington before face to face meetings began, a tweet provided an unexpected twist. ♪ donald trump has ordered the u.s. commerce department to get zte back in business week after cutting off the telecom company from its american suppliers. in a major reversal, the president tweeted that he and fishin worked look thing together. >> we certainly know that cte was proven to be a considerable source of contention with china. it essentially meant that company -- suggest they are negotiating framework now and that it is a marketing chip on the table. >>

tencent is absolutely on a tear, up 7%.or the moment, the equity markets remain unsettled by senior government bond yields reaching important levels. of above 3.11%. juliette saly is standing by with all the latest. totale is that it will not risk investing in iran unless they can secure a waiver. saying continuing to do business in the islamic republic would be too great a risk at the government has large operations in america and depends on the countries thanks for finance its operations. as result, it won't commit anywhere funds to advance project in which it took a controlling stake last year. it has emerged that u.s. regulators gave a senior executive at deutsche bank astern morning in march, according to people with direct knowledge of the situation, they ,ere told to act more urgently described in his series of settlements over the past years. the revelations underscore the daunting behind the scene challenge facing the new ceo. representatives for deutsche bank and the new york fed declined to comment. tencent has j

it looks like tencent is not going to let go.end and very committed to their online revenue, online streaming projects, and they are going to expand into new retail. the spending spree looks like it will continue for a long term. retail weekddle of with macy's reporting stronger earnings yesterday, walmart reporting that which fell short of estimates, and jcpenney. >> is anyone surprised by these results? the reality, online is winning. if you have a winning get a digital platform, you are having winning in that area. walmart, their floorspace is what they need to be dealing with. they need to start addressing their brick-and-mortar operations, shutting down stores, they need to make sure they are turning around what they are doing in those main source areas because it will be a drag on the online offering longer-term. the flip cart deal is evidence of that. they are buying into a market where amazon is already doing well. to turn that around and another markets while they still have problems at home, they have a lot of work to d

and b.a.t., which is alibaba, baidu and tencent are crowded trades but tencent is the ultimate story.nvestments not just in social online platforms wechat is the facebook of much of asia. they have major investments in gaming, in ai, across iqi, which is youtube it's a broader pan asian play but also a tech play the tech story is not without issues, but if people are looking for ways to get -- the china tech play will be also based upon what's going on in u.s. tech. >> tim seymour, always appreciate it. >> good to be here on a friday >>> let's wrap it up with the morning rbi. today we're talking big money. for the first time ever, asia now home to more billionaires than north america a new survey finds 787 billionaires in asia congratulations, asia. random but interesting have a great weekend your digestive system has billions of bacteria, but life can throw them off balance. try align, the #1 doctor recommended probiotic. with a unique strain that re-aligns your system. re-align yourself, with align. we're experts in connecting your advertising message to welcothe right audience.ight

requiring tencent and other media services to enforce censorship guidelines, although tencent denieslion chat subscribers. haidi: netflix briefly topped disney in market value in thursday trading, challenging for the title of most valuable media company. confidence, of-- 82%, surpassed comcast. the california jury has awarded apple more than half $1 billion in damages from samsung over their long-running dispute. apple had sawed $4 billion, while samsung argued it should pay 20 million for the infringement of five patents. peter elstrom, this has been a multitier saga and it is definitely not the end, is it? peter: it is not the end. it is important to remember how long this has been going on. it has been seven years so far. the two giants continued to battle in the u.s. courts. apple is arguing samsung has infringed on certain designs, design patents and utility patents. samsung has denied the charges and said even if it did infringe on them, it shouldn't owe as much as that. there were many court battles samsungbut previously, had been ordered to pay about $1 billion in penalties.

tencent numbers dropped after the market close. matt: less than half an hour away, european futures. ,e are looking at a mixed trade a drop on futures for the ftse but a gain onc, the futures in germany. very slight. -- a move inmove btp's, we will show you that through the morning because the talks there are absolutely fascinating. it could bring together a government that a lot of pundits said was not a possibility. the 10 year treasury yield, i have a three-day chart here, the highest level since 2011 yesterday. 3.065.hovering around the interesting thing will be whether or not the positive data out of the u.s. brings the fed to three more rate hikes this year and if investors keep an appetite for treasuries amid the massive delusion of supply -- deluge of supply from the u.s.. guy: btp's, certainly a story. the market is pricing in the possibility the populist government gets formed. they may have found a temporary solution to deal with the situation regarding prime minister. of 2% on the north 10 year yields basis, the spreads

margins also under pressure for tencent but rising investment in ,isual content, as well as ai but tencentgaining ground of a 1.4% in hong kong. the biggest boost to the benchmark there. we are keeping an eye on chipper rated stocks after china is set of $37.4 a new fund billion to spur the development of the semiconductor industry. it is set to snap a three-day drop but it's buyback plan did not impress too much. taking a look at lenovo, under pressure here. movess where we see changes to the hans saying there it we check in on csb see pharma, which is rising on its inclusion while lenovo is sliding on exclusion. let's check on companies in the distance and shipping operations in china. li & fung have businesses that make more than half of the revenue from frates and services. alibaba owns a stake in white t o. asset holdings at about .5%, china's second-largest courier. guys? haidi: let's get the first word news with paul allen in sydney. paul: sanctions are not the willingness to remove weapons from the peninsula. the u.s. is misleading the public eye characterizing those steps as a sig

i am dying to ask you about tencent. it did beat estimates. talk to me about tesla. at the top. i think there is a certain question as to whether it is elon musk getting rid of people or people deciding to leave. it seems like me is lot more of the latter than the former. and itbe quite abrasive may be that is panning out in the way other people are thinking, do i really need this anymore? he talks about flattening the management structure at tesla but i think he needs to learn to be able to delegate effectively. to take it all on himself when he is running four other companies, that does not seem to be the best way to generate how you for shareholders. francine: you know everything there is to know about opec. first quarter profits past management estimates. this is a massive company. i think it has the eight biggest market cap in the world. they areencent offering a lot of money in new investment and they're working to leverage their existing properties with new offerings. they can push additional products and it helps coming after the christmas quarter, that is wh

alibaba and tencent do not leave the state affiliated lineup.our bloomberg columnist in taipei. tim, who's going to benefit most from this state investment? ed enterprisesn and best o or foxconn? >> foxconn will do fine without these investors. the ipo is well oversubscribed. this is a hot property. possibly the hottest ipo in china, in mainland china this year, in the next few months. theythey don't need the outsidep your it comes down to a lot of the state own enterprises topping the list. shanghai sdic, central -- investment in china railways corps. they are getting some strategic allocation. list,encent are on the but they are at the bottom of the list. so, they are getting a chance to get access to foxconn, a high tech hero, taiwanese company listing in china. also, a political coup for china. at the end of the day, this is something that foxconn itself did not need this was great for beijing. haidi: what is the end game for both sides? tim: well, foxconn, i think,, keep your friends close by your enemies closer. it's harsh to say beijing i

tencent remains one of the biggest tech firms in the world. the stock has seen dramatic year.r the last one hedge fund manager says he has a novel idea to invest in the company without taking on so much risk. he details his strategy to stephen engle from a conference in hong kong. take a listen. spark has been bullish for so many years that people are not assigning high probability to a selloff. to be clear, we are not calling for a big selloff in the stock, but if one were to occur, this would have a significant amount of value. reporter: what is the distribution of your call? you are also saying go along with some shares. >> that's right. we would do this on what we call a theoretical delta. march 2019, 25%, at a tend out of. that means you buy 10% of the stock when you buy the put. where the stocks to rally a lot, you will lose money and the premiums, but make quite a bit of money on the stock you are long. this that really allows you to make money in extreme moves either way. if it's down a lot or up a lot, you will actually make quite a lot of money. reporter: would you c

or services provider like tencent or alibaba? that is where you get this fluctuation in valuation.t was a big perspective with several hundred pages. more people on, built deeper into it and made that realization that this is what tencent really is, and this is where profits come from. asy do want to be thought of a smartphone maker even though that is where a lot of revenue comes from and where you see a lot of rapidfire growth in recent months. but it is not where the profits are. company thats a wasn't going much a couple of years ago and then we saw this huge turnaround. how excited arehow excited are ? tom: you are right, a couple of years ago were facing tough times. we were talking about how everything had gone wrong there and help the man had plummeted for their products, but they set up pop-up stores and got into a wide range of products. air purifiers is my favorite product. turnarounds caused a and caused a change in that company's fortunes, even though the evaluation may not be quite as lofty as the 100 billion. there's still a lot of interest in what this company does

tencent owns the giant we chat messaging platform. coming up, facebook ceo mark zuckerberg is getting ready to face the music on the other side of the atlantic, next. and if you like bloomberg news, check us out on the radio. bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪ caroline: welcome back to a bloombergion of technology, live from the optimus ride headquarters in boston. facebook ceo mark zuckerberg is preparing to head to europe to answer european lawmakers' questions about how the data of 2.7 million europeans ended up in the hands of cambridge analytic up. for more, let's turn to sarah frier. by thissurprised decision they will accept europe's invitation? >> next week is a very important week in europe, because that is the week gdp are goes into effect, the privacy regulation that has caused facebook to make a whole bunch of changes to privacy settings for users, not just in europe but around the world. zuckerberg is going at a time when he really needs to be on the good side of this di

the issue has made them fearful, so the chairman of tencent said zte needs to serve as a wake—up callde itself so exposed. he says chinese company need to work on research and development and these be a big part of investment are they going to make sure they are not reliant on us technology. some of the comments were made recently by the two largest companies in asia saying it comes to that. and we are seeing that as a financial crippling at the hands of the us. they are basically treating a legally with iran and north korea and as a result the us exposed an export ban which means non—american companies could trade and the reason it was so problem —— problematic was they rely on their products using american technology component is so absolutely crippled them and zte don't want to see the same thing happening to them. there is a stigma about chinese technology. how will it us companies respond? this whole trade tension between the us and china, we saw reaction from both sides and the american companies, they have a long held deal about buying semiconductors and eight out of nine regul

tencent almost -- down 2%. bit of a mixed bag. it looks like casino stocks are giving you some optimism. haidi: thank you for that. let's get the first word news with yvonne man. yvonne: interest rates unchanged. inflation is close to target. the fomc also did a weakness and growth for the first quarter, removing a reference in the merchant statement that the economic outlook has strengthened in recent months. they balanced that out by noting solid growth in business investment. the world economy shows signs of stabilizing after a recent moderation with manufacturing activities strengthening for the first time this year. crossed more than 40 countries, raised to 53.5 in april, marches six-month low of 53.3. the numbers reinforce advice not to betan chase against the world economy just yet. president trump's massive fiscal stimulus plan are adding to the u.s. debt overload and forcing the government to drive a bond issuance is the fed shrinks its balance sheet. the u.s. treasury is boosting the amount of long-term debt it sells to

remember, one of the biggest investors is tencent. could be done with tencent music. they could really grow their focus over there. a breakdown of premium users, the bulk, about 40% in europe. one third is with you in the u.s., but then it is latin america and the rest of the world. i think you will see more emerging markets. we saw israel open in march as well as south africa. we will see an expansion territorially. more innovative ways of cashing in and making money. emily: that was bloomberg's caroline hyde and alex barinka. still ahead, how xiaomi went from has been to the biggest ipo in years. this is bloomberg. ♪ ♪ emily: this week, xiaomi filed for an initial public offering in hong kong, kicking off a process that could be valued at $10 billion. it could be the largest deal since alibaba and may bring in the value of $100 billion. the chinese smartphone maker is growing at a blistering pace that will help it take on apple and samsung. we went live in hong kong on thursday where we were joined by bloomberg's stephen engle. step

tencent owns the giant wechat messaging platform. coming up, he stood before american lawmakers, and now facebook ceo mark zuckerberg is , getting ready to face the music on the other side of the atlantic, next. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. , this is bloomberg. ♪ caroline: welcome back to a special edition of "bloomberg technology," live from the optimus ride headquarters in boston. now facebook ceo mark zuckerberg , is preparing to head to europe to answer european lawmakers' questions about how the data of as many as 2.7 million europeans could have ended up in the hands cambridgeing firm analytica. for more, let's turn to sarah frier. are you surprised by this decision they will accept europe's invitation? next week is a very important week in europe, because that is the week gdp are r goes into effect, the privacy regulation that has caused facebook to make a whole bunch of changes to privacy settings for users, n

>> we are partnering up with tencent in terms of content purchasing.hows. sometimes we exchange a show we have bought with each other. we collaborated at many levels, work more with tencent over a certain length or john or a permit for us to collaborate with them closely on cell produced content is very small. on the contrary, in our industry, there are certain possibilities or us to cooperate on the sales and. i talk about the possibility of the moment. research only doing with them currently. short-term video services have been quite popular in china, taking up a lot of the time spent. are you worried this could take attention away from your company as an entertainment platform? >> i just started to worry about it. the speed of development in the longform videos has been too fast. the amount of resources you need is significant. the competition has been fierce. it is not that i have not known a growing prevalence to short-term video -- short form video, is that i just can't afford to split our attention. if i did, the long-term -- longform video busi

tencent is falling below hong kong's $400. chinese mainland investors are selling $81 million worth of shares in tencent. nintendo is rising on plans for new games to come through for its switch consuls and phones -- consoles and phones. 6%,ne bysian regarding the alleged accusations of bribes being paid. s: italy may be headed toward a snap election as early as july in attempts to form a new government. president left a meeting without an agreement on the cabinet. another failure could force the president to dissolve his own parliament and force elections within 70 days. 500 had its worst day in five weeks. stoxx, down to levels not seen since last july. but the very future of the eurozone is not under threat. george: the harsh reality -- europe needs to do something drastic to escape it. it needs to reinvent itself. manus: italian tier notes plunged. the nation could leave the common currency -- that is a concern. leads with the fact that the five-star and league between them have 60% ratings. is it is fueled by s refusal to

return to shareholders $2 billion worth of buybacks in addition to tencent's dividend we announced.the strength we are seeing in organic growth in a number of our markets. nejra: socgen trading disappoints. the bank missed out on the trading gains that boosted earnings at u.s. and european rivals. we break down the numbers with the deputy cfo -- ceo kerry -- ceo. we feel finally the balance will be found. to me, the major risk is more on operational risk in the cyber issue. nejra: jobs day usa they expect growth to rebound in april. the dollar slips slightly ahead of today's report. ♪ nejra: good morning, friday morning carried 7:00 in london. about breaking news this hour, numbers from iag, adjusted operating profit 200 80 million euros, above the estimate of 194. revenue, 5.0 2 billion, a little below estimate but the operating profit number looks to be ahead of the estimate. they talk about 2018 operating upfit, revenue per cyclical 11%. the big picture, the strategy piece around aig is what their intentions are toward norwegian. we want to get some commentary on that. talked abo

tencent will help snapchat get into a videogame.u have this generation and you see the important of gaming to this generation and you see tencent foothold in gaming with epic games, if they were with snapchat to monetize gaming, that is something they are in position to do. julia: what ultimately could have been here that rakes the thesis? >> here's the beautiful part about it. there so much negativity on the stock. all you need to have is a stable quarter and you can see 30%. if you look at where facebook is trading, where netflix or google or amazon is trading, what will it take for them to go up another 30%? if you look at snapchat, right now, if you get a stable order, if the financials are getting better, if you bring in some of the spending and go to the programmatic advertising they are doing and bring it on the platform, and that has been the growing pain, the first bump you get is 30% and then he goes from there on in. julia: i don't think i have ever seen you so lively. i think you should go along more often. [laughter] ha

we are hearing from affiliates alibaba and tencent investing in the company.says they are spending the equivalent of $2.15 u.s. a share on 20 million shares ahead of the upcoming shanghai listing. still ahead, central bankers around the world are calling for independence from politics with fed chair jay powell leading the charge. more on what was said, coming up. this is bloomberg. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. david: 7:30 in the evening, sunday in new york. we are approaching summer quite quickly. it is dry, the holiday weekend, markets closed monday for memorial day. futures pointing slightly higher across the board, dow jones, s&p and nasdaq off. yvonne: and it

if technology champions tencent and alibaba are in the top 10.opean companies are nowhere to be seen amongst the global elite. but the seeming omnipotence can be waning, and it is europe raking it in. e.u. competition commissioner has pursued antitrust cases against silicon valley's biggest, slapping billions of regulatory fines, and starting next week, the general data protection regulation will require businesses to increase protections on e.u. citizens. europe's lead in regulation could be an opportunity for the content flagging tech industry if it means european companies get better at building socially responsible alternatives to today's big tex, but will they? reporter: over to brent now. merkel's say to macron, let me get back to you. brent: is there something real and they say there is merkel-macron magic at play? many are asking for that. she is doing her best to come up with a response to the e.u. reform proposals by emmanuel macron. she says a german answer will be ready in time for next month's au summit -- e.u. summit. she made this

tencent is out with earnings tomorrow. yvonne: let's continue that story.enchmark equity gauges next month. the three largest addition to the mci -- msci index. let's bring up our reporter in hong kong right now. what does this mean for these companies that have been included now? is a hugehe said this deal, but it is a small slice. these are huge companies. it is a tiny percentage. they have been able to buy them through hong kong, but they are actually a lot more expensive on the mainland been in hong kong. .t is a symbolic move they will have shares listed in shanghai and beijing. you might not see an immediate impact on june 1. we will get another addition in september. it is a process towards opening up chinese markets to international investors are you we might not see the stocks rise in large amounts. this is exactly what msci ones. they wanted to be a smooth process -- wants. it to be a smooth process. it is not a surprise to anyone. -- it will go as smoothly as possible -- as possible. now, we have a lot of money tracking msci indices. the emerging

tencent on the up.ok at the laggards, energy and financial stocks dragging the most on the hang seng. with china set to lower car tears july 1, let's look at chinese automakers who have joint ventures with foreign brands. brands among the biggest beneficiaries given the volume of imports. says itg intelligence does not appear to be in the upside for domestic players. from a joint venture point of view, it would discourage foreign brands from increasing local production. luxury dealers will likely enjoy a boost in sales, one dealer up 6%. luxury car dealers rising nicely so far. haidi: thank you for that. let's get to first word news in sydney. >> president trump has poured cold water on rising trade optimism, saying he is not pleased on how talks are going with china. on administration held off billions of dollars of tariffs with reports of white house this court on strategy. wilbur ross plans to visit china early next month to continue trade talks. venezuela has expelled the top two u.s. diplomats in t

it looks like tencent is not going to let go.y are going to spend more, very committed to their online revenue, online streaming projects. their online entertainment projects. they are going to spend into new retail. the spending spree looks like it is going to continue. francine: what do we know about gaming? for all of our viewers, we sometimes forget tencent is the eight biggest company in the world by market cap. lulu: gaming is the most important part of their business. investors were super interested about that part of the business. the broader guidance that the government -- the coveney gave is although you saw some gaming,ts with their pc the broader trend is uses are shifting from pc to mobile, league of legends, crossfire, all these things are showing signs of weakness. on the brighter side for mobile for licensed games -- mobile, they have licensed games . the question is, when will the monetizationprove and also approved the licensing npc -- and pc version for china. we are expecting a bump in their revenue income. th

in mobile payments she is also not something similar to compete with condo change in the whole of tencent in many high tech companies so china is big on the blocking the people go see the people's bank of china has already done trial runs with their own crypto currency now leads into crypto is there not such a big fan of because they want to like every other government they try to control your money intro your life with your lease which is which is the paper money. so you know i mean me may have known there was the last chain has been to conference here a few weeks ago which i actually attended and we were thrown out and right before lunch the government came in and literally you know everyone's got to go and over three thousand people we had to exit the conference the morning was most and been checked but then when they started talking about crystal wallets and how you can get your money out of the country then it got shut down so well that no kidding me well i got twenty seconds can i make a comment on cena. so you know kim is the train to accompany the first trial runs with block team

forne: doesn't bode well the likes of xiaomi or tencent music? i think it does. at how warren buffett is looking at the stocks on the program. though if you think about where investors are paying attention, they pay attention particularly in technology, but increasingly into technology companies in china. months,o back 12-18 u.s. based investors were focused on the u.s. pre-ipo market. fast-forward to today and i spend a lot of my time in hong working with u.s. investors. because they are very focused on the chinese tech companies, given the population and cyclical and structural changes. there is a lot of growth to be had for the marketplace tech businesses. betty: tell us about the u.s. banks and what they are doing to woo the chinese tech ipos? robert: i can't speak to what the bankers are talking about. they come to us reg looking for information and color. come to us regularly looking for information and color. tut if you look at tencen -- users.y have that tells you about the size of the market. it isn't escaping attention of u.s. investors. we see chinese

the focus will likely be on tencent.s is the big rock star stock in china that was at record highs in january. since then, it shed about 82 billion in value as investors priced in the cost of this massive spending spree. predicted to drop to the lowest level since 2003. let's move on to some of the ego data. probably what will be most in focus is the retail spending. economists predict it likely rose in april. they also expect the manufacturing data to come in fairly strong. this is important, it is an important part of the economy. leslie, we have prince harry's marriage on saturday, the other big event. thank you. still ahead, crossed wires. president trump says he wants zte back in business after cutting them off for violations. betty: those details later, but next, the chinese companies added to the msci. ong joins us. this is bloomberg. ♪ ♪ this is an important first step. we estimate in the coming months, this weighting will increase, and the msci will increase shares in the coming years into its global index. also