we have a tencent this merger. that has been basically killed now that china regulators are adding a chilling effect to deals. now they're talking about giving up their exclusive rights. that will all be in place. let's talk about markets. hst see is coming out what their outlook. the big theme we are watching this week is this whole rrr cut. the concerns that first and first out, china growth is slowing. how do you factor that into your second-half outlook? >> thanks for having me today. for china's outlook, with the recent development and something with our expectation was the economy moving from the restoration into a expansion phase. we will see this cut that signals that the market focuses on the liquidity. it is part of the liquidity management. the chinese economy is still moving back to a normal growth situation. it is in line with our expectation and economy is more normal expansion space. yvonne: the more normal the expansion phase, i am wondering, does that send a bad signal to markets? they have been qu

got to watch tencent.unce back it comes to the shares, extending gains as much as 8% this morning. that is the most we have seen since january. this was the world's worst stock bet just yesterday. they are still on track for the worst month ever for the stock. we will see if this changes things. a little bit better in terms of sentiment. david: you will still need to see the support coming out of the mainland buyer. you are still not seeing southbound flows. negative for the latter part of july, nessa's of this market. -- net sellers of this market. prices on the way up. in terms of top and bottom 10 on the csi 300, tencent should actually be here. alibaba, may 20, -- meituan, and tencent in the past couple days. as we make our way into the thailand open, it's risk on. a bull market. [laughter] yvonne: we have plenty more to come. this is bloomberg. (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's ae

tencent down 6.7%.ome of these education stocks which is one of the reason why they are also hurting here. but it is a fairly broad selloff taking place here. we are also heading for the hong kong lunch break as well. juliette: as you say, these key levels are watching -- the hang seng tech index, the july 2020 lows. wiping out all of the gains from this year. elsewhere, you have japan coming back after a break. tracking high australia your records. a bit of weakness filtering through from other markets. including here in singapore. down about 0.5%. your pan is the outlier. it is playing catch-up. that is it from bloomberg markets: asia and daybreak middle east is next. middle east is next. and there you have it - wireless on the fastest, most reliable network. wow! big deal! we get unlimited for just $30 bucks. i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax people, my wireless is crushing it. okay, that's beca

for example, over the weekend, tencent, which up until only a couple of weeks ago people were saying, hey, the founder of tencent has been doing a good job, really laying low, he's always -- he's known as being somebody who is, you know, very quiet and not very public on a lot of these issues, not critical of the government or anything like that, but now tencent and tencent music got punished over the weekend, slapped with a fine that was a minor fine, onlily le only $80, driving home the point that the tech companies cannot have a dominant position, even, for example, an area that is kind of growing and does have other competitors, such as a liv streaming music. >> yeah. well, we, of course, covet your insight as more of these actions take place and more news comes out. eunice, thank you. joining us now to weigh in with more on this, former cisco systems ceo john chambers, john, you went through your share of headaches and trials over chinese policy and regulation over at cisco. how does this latest round of shifts and changes in regulations over in china look to you and what do you

having a look now at tencent. horrible time of it, but it is coming back today.ng at that one, up 3%. let's get to asia tech reporter. these companies have a lot of regulatory overhang. tell us about this. they have different types of regulation problems. >> no new user registrations will be allowed until early august because the company is working on some security technical upgrades according to chinese laws and regulations, but the company did not specify exactly what the problem is. it could be related to china's data security issue. yvonne: tencent relatively speaking has been able to avoid the crust of these regulatory policies. do you think pony ma can stay that way, keep the company away from government scrutiny, or is there any other chinese company that is a little bit more protective? >> relatively speaking, tencent is better off because it has less touch point to the real economy to the physical e-commerce or delivery stuff, but that is this week -- at this week's credit show, china is more broadly trying to rein in staff who probably has excessive con

-- out of baidu and tencent.have cut their stakes in other businesses by about 3/4 from where they were just a few months ago. you mentioned the idea of a valuation reset that was raised yesterday on a seminar with investors. let's take a look at what some strategist call the back stocks. baidu trading at about 22 times earnings, about half its peak. tencent holdings, that's based on their hong kong shares. we have certainly seen those numbers come down. these stocks have indeed fallen, and would expect declines to hold off for a while. alix: how has it affected the etf performance? clearly those stocks were down hard in the last three months. dave: backing away from them, you can argue, has paid off for cathie wood because you look at the arc innovation share, they peaked back in february, they were down more than 30% through mid-may, and since then they have managed to come back even as the chinese companies stood in the u.s. have been suffering because of all the moves the government has made to reign in the i

the latest target tencent. live to beijing. it is monday, july 12th, 2021.wk box" begins right now. >>> good morning welcome to "squawk box" here on% nbc

tencent in the u.s. is getting completely decimated, down by 6%.ome of the technology education related stocks, we are getting a bit of a dead cat bounce today. what ones of happening? how does that could -- what winds up happening? how does that continue? moderna having some testing that will delay shipments. the story in the u.s. continues to be the 10 year real yield, have you -- as you have a lot of takedown supply. but what do you invest in when that is going to be the real yield in the 10 year in the u.s., and we are shaping up to be the better vaccinated economy at the end of the day? dani: not only that, but then you have to contend with a stock market that is extremely frothy as well. this is a big conundrum if you are an asset allocated. as you pointed out, we are seeing a lot of these china exposed stocks get hit hard, and the china tech rout is spreading as fears of foreign investor exodus intensify. investors are voicing concern about how the uncertainty is spilling into markets. >> we really have a cloud of uncertainty. >> the uncerta

haidi: this is far from the days when the tencent was the absolute darling.e into bloomberg radio to get more from the newsmakers, you can get the in-depth analysis from our daybreak team. broadcasting live from our studio in hong kong. you can go to radio plus or bloombergradio.com. more ahead, this is bloomberg. ♪ haidi: this is one of the rises we are seeing so far in this sydney session. this after the company saying they would be re-engaging when it comes to a takeover. teachers pension plan board and the consortium are back at the table after the partners made that improved bid. earning a stake in electricity transmission and distribution networks in australia. they are behind plans for the renewable energy hub. it will be with due according to a segment made earlier. they will have 95 aussie a share. that's two dollars 76 cents a share -- $2.36 a share. at about 40 billion aussie dollars. the previous had been rejected as being too low, but it does seem to be enough to progress the talks. shery: let's now take a look at the latest business flash headli

they are said to order tencent to give up exclusive rights to music labels.y will be fined 77 thousand dollars for misreporting the acquisition of two apps. the penalties are a result of an antitrust investigation into tencent music which has long held the lead in china's music industry. the chairman has stepped down from the chinese retail giant after losing control of the company following a government led bailout. he will resign and be appointed as honorary chairman to guide the firm's future growth. he sold a 17% stake to a state back consortium in a 1.3 billion dollar bailout next week. up next, nissan's president and ceo discusses balancing innovation with cost of galloping ev's. that exclusive interview, just ahead. we will continue to follow the markets and more. this is bloomberg. ♪ ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete

tencent music is down 60 or 70. i'm watching them.ou don't know what the market will do putting a value on these things when day in, day out they're coming after them. the hang seng went down 1100 last night just for these reasons. just leave no doubt, they are going away from capitalism in china and that is going -- i'm telling you the boardrooms of all the multinationals here who do a lot of business there, they are discussing this big time and probably talking to the emissaries from over there saying what the heck is going on? charles: yeah. >> by the way you seeing it going on in hong kong also. i think this is to stay. i would stay away right now. it is tough enough investing let alone getting into these deepwaters. >> real quick, david, we have the fed this week also. what do you think ultimately dictates the outcome of this week? will it be any sort of wink and a nod from jay powell or will we continue to see the needle move on major earnings beats? >> they will have great earnings and estimates but the question will they beat

this time it is tencent. we take you live to beijing. hear what's going on. >>> the most wonderful time of year to be scott cohn. he will reveal cnbc's top states for business he joins us in the next hour with the first of one of his many diabolical hints. we're looking forward to playing the guessing game. we're right back after this. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. l m something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ib

the likes of tencent fell. the most on record after that 14% drop yesterday. interestingly, there are pretty bullish analyst views on tech players, when you look at the anr function it has something like 55 five and zero holds. jeffrey has a price target, which is trading at 196 hong kong dollars. let's have a look at whether or not this is going to be a sign that buyers could start to move, and particularly when you look at the hang seng china enterprises index. this is the h share index and bear market territory. we saw a yesterday, down by 25% from its peak. we are starting to see when it hits that level, that green line of 28. it is now in oversold territory. so you could start to see some movers coming in. but daniel is saying it is too soon, in his opinion, for investors to start to bottom fish. they could be in for a few more days of selling in the key hong kong markets. anna: thank you very much. indeed, it's an equity market story. we are seeing money coming out of chinese bond markets in those yields

alibaba, tencent, there's a whole ecosystem within their businesses.on't really need to lead -- leave the app on your devices to benefit from what they provide to every consumer. dani: it's really interesting. if you think about tech at this moment, it's very expensive. perhaps some of the selloff in these companies is an attractive opportunity if they will still do well long-term. what you do with the facebook and amazons? they are having such expensive valuations. if you wanted to trade on valuations, you would have missed out on a huge run-up. what you make of the share prices at this point? lucy: i'm a long-term investor. the businesses that we mentioned, all of them are extremely high-quality businesses. very well-placed for the longer term. yet it seems odd that i'm biting these individual shares constantly for clients. having bought them five years ago or longer, when they were much cheaper. they are still fundamentally great businesses. yes, markets and stock markets will go up and down. various defense such as the pandemic. if you sold them an

bite dance shelves its ipo, didi removes additional apps and now a report that tencent is being ordered to give up its music label exclusivity. >> one small step for man, one giant leap for mankind maybe that's a little bit of an overstatement, but after nearly 17 years of development, virgin galactic and of course the guy behind it, billionaire richard branson reaches space. >> and the ftc reportedly launching an investigation into amazon's nearly $8.5 billion bid to acquire mgm studios we're going to break it all down china's going to start us off this morning, a new piece in the journal detailing how bite dance shelved its ipo plans after chinese regulators warned of data security risks. didi was the big story last week i was out last week, i'm sure you talked about why they're going after their giants in this way. >> i do think this is, again, a belief that the billionaires must be stopped. the creation of great wealth is not right for the communists, and that american companies that are investing may be making mistakes david, i don't think they want us there they used to >> well, i

tencent earned 5k holdings everyday that's week.than 1% of access invested in chinese companies compared to 8%. its delivery outlook this year after a second quarter earnings. the ev maker posted a record profit -- profit of 1.1 billion dollars marking its eight straight quarter in the black. higher sales market wide. bitcoin related impairment. 23 million dollars after the cryptocurrency plunged in the second quarter. land rover is limiting damage from the global chip shortage, setting up a four-time mission control center to manage supply chain issues. these issues derailed a profit earnings. last quarter, the big tech deficit contributed to a net loss in $600 million. let's get a recap of sk hynix comments coming up to the earnings report. there in a conference call and remember, they posted second-quarter earnings that top analysts estimate a boom in semiconductor prices. the supply and demand dynamic is projected to improve in the second half. the mobile markets rose slowing and the second quarter. this the markets will recover

china's market regulator also fined tencent for what it says are unfair market practices in the online of the firm's purchase of china music corporation. china's state—owned nuclear energy company could be blocked from all future power projects in the uk, with ministers understood to be investigating ways to prevent its involvement, according to the financial times. the move would exclude china general nuclear from the consortium planning to build the £20 billion sizewell c nuclear plant on the suffolk coast. now let's talk about a victory for british wine drinkers after the uk government decided to scrap a planned import levy of around 10 pence on every bottle imported into the country. from 2022, wine shipped to the uk from the eu was due to require a certificate, which meant it met certain regulations. there were fears this would have pushed up wine prices. joining me now is justin urquhart—stewart, the co—founder and ambassador of seven investment management. good morning and lovely to see you. it's been described as a victory, would you call it that, for the british wine drinker?—

the most important internet company for china including alibaba, baidu, tencent music are only listed.s.. that is over 248 companies in the u.s.. the u.s. stock market is really, really important to china and chinese companies. having said that, the new data security law that just past is something that chinese companies really care about and no one is going to get past that, doesn't really matter how big you are as an internet company. caroline: from your perspective, the data is the issue for the chinese government. can anything be done to get that eased, or from here on if you are a big company in china there will be some sort of east versus west? edith: definitely i think more and more chinese companies because of what's going on and also now more and more they will be thinking about the hong kong stock market and the key thing is we have seen this happen before, in the past, with tencent and the gains not approved by the government, they had to be taken down for a few days and it is something that could be fixed, but the amount of time, it's not going to be fast. it's something t

haslinda: it's amazing how big the losses are when it is a tencent.head on the show, and economist and commissioner on rates and asset disparities. we will join bloomberg surveillance early edition if you are in hong kong. that is it for bloomberg markets: asia. daybreak middle east is next. keep it here with us. this is bloomberg. ♪ look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. announcer: the following is a paid program. the opinions and views expressed do not affect bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation furnished by rare collectibles tv llc. annou

then tencent music totally separate company, but of course, related down 2.6%. china's another market titans also taking new blows at xi-jinping's regime looks to remind its homegrown capitolists whose really in charge and of course the report that cathie wood, yeah, she is selling off chinese stocks because there is this huge question mark over what government will do next. all right, from red to green let's look at bitcoin hitting a six week high. folks this morning, trading 9,000 dollars higher than it just was trading a week ago, that was at 38,000. look at it right now at 40, 018, that's a gain of 22% right now. ethererum better by 16%. litecoin, jumping 15%. what's going on here? well, you know, there are always triggers with crypto but new signs that amazon may not only be accepting considering accepting bitcoin as payment by the end of the year, but it's also toying with making its own token in the future. that of course has breathed new life into the crypto world and they also listed a job posting for a crypto expert. all right, so no wonder we got a lo

tencent says it will rectify the situation.rs of all kinds to buy shares, opening up to the public what is typically reserved for institutional players. they responded to customer questions about the business model and growth plan. it is allocating as much is 35% of shares for its own app. it is expected to start trading on july 29. a singapore company has agreed to go public with a blank check company backed by richard lee and peter thiel. it is expected by 2022. the combined entity will train -- will trade on the new york stock exchange. a vein per -- posted a 70% jump in profit on the first quarter, helped along by strong interest earnings. net income and, beat estimates and almost doubled in the same. from a year ago. u.s. cinemas have had a disappointing weekend with ticket sales down 27% on last week at $66 million. new releases, including the newest installment of the g.i. joe franchise, struggled to attract fans. some of these sales are running 77 -- 77% below 2019 levels. shery: let's turn to mcdonald's. the ceo saying

alibaba and tencent, small companies. chance of these smaller companies to come up and go in a good pace. the other area i am interested in, that is going to be beneficial for some companies. >> what are the areas you see? you have health care, what else could you cd impacted by some of these regulatory crackdown from china? >> obviously indirectly the consumer section will be hit. big companies like alibaba and tencent, they have dominated the payments area. now, the smaller companies will be able to do their own systems. have freedom. that can be beneficial. >> is there going to be another sector in the crosshairs? >> recently a crackdown of that sort of thing in china. whenever you have a crackdown, i would say education would be an area to look at. >> that was mark mobius, the founding partner of mobius capital. plenty more to come. this is bloomberg. ♪ haidi: taking a look at the day ahead for us trillion, earnings later today. in aussie stocks, sydney's much -- sydney's month-long lockdown is expected to be extended

like the tencent and alibaba, those were china consumer plays. they have become mega caps. that shift in the way the market values companies that will last and are sustainable, what metric are you guys using to determine which types of tech companies or biotech companies will tend to be your future tencent and future alibaba? mr. anand: david, one of the important points to bring up is that concept of what metrics look at. i think for the cycle in front of us, i think it is important for investors to really consider valuation and the margin of safety it offers. this is different in the last cycle. in the last cycle, assets were expensive and more expensive. assets that were cheap became cheaper. rather than thinking about this in a uniform sectoral way, you have to look at the fundamentals of the business and put that against what we see in terms of the valuations. some of those large chinese internet stocks. because of some of the impact sentiment more recently, the valuations of those companies have come down a fair bit. they are still very robust businesses. in china, as

her holdings when it comes to chinese tech stocks, but last week every day she was selling either tencent or property market stocks they were holding. the caveat, etf traders in emerging markets have been piling into china and hong kong trades just before the crackdown. haidi: you have to have quite a bit of risk appetite for these opportunities. even goldman sachs are saying, even when you think you have priced in china risk, it could get worse. didi most recently and the chinese education tech names. we saw the plunge in meituan, the food giant. the food delivery market, a massive one, plunged, the worst on record after the policy saying they must respect the rights of delivery staff, at least giving them the minimum income. it feels like if you are going to invest in china, you need to be able to go with the flow of beijing priority policies. shery: some analysts were saying you have to remember this is still china, not the u.s., not western economies. if they change policy, it can be fast and decisive, allowing investors to keep an eye on. sophie: we have a busy week ahead when it com

we have seen tencent as a key backer. tencent, alibaba, may 2 on -- alibaba, baidu.ll in reaction to the latest tech crackdown in china on the regulatory front. didi, like many of these big platforms we saw eight months ago as well when the ant ipo was discovered at the last minute, many of these companies grew rapidly in the absence of comprehensive regulatory environment. the regulators are trying to plug the and catch up and this particular case, didi, is a little bit different because they listed in the united states, exposing the regulatory uncertainty to global investors more so than perhaps the ant ipo. ant ipo was much bigger and it was not hong kong so it was a global offering. it was in shanghai as well and that could sensually expose many domestic retail investors in china to these expected losses if the ant ipo went ahead followed by regulatory scrutiny, as what happened with didi. listing first and then regulatory crackdown fairly quickly. dow jones newswire is out with a story this morning, saying that regulators in china approached didi in the days bef

tencent also seeing an impact. let's get more from our markets reporter.his is a continuation of the theme we have been discussing over the last two weeks. does any of this, they surprise and what are the implications? guest: it is not a complete surprise because this is an ongoing campaign from the regulatory side trying to rein in these companies and the area for focuses -- antitrust and tencent falls into that. didi is about data security. there is also a crackdown on afterschool tutoring which you could put into the category of social equality. it's really not that good for the chinese to increase the population, so it's an ongoing campaign, so it's not a complete surprise we continue to see more crackdown in these sectors. kathleen: so many people are commenting on this inside china, outside china. this is data security, social considerations -- a lot of governments around the world are looking at them. a lot of others are saying this has much to do with the chinese government not wanting something to get too big and too powerful. and some say this is

tencent, take your pick. let's have a look across sector groups on this. out of the four, but here's the key, guys. tech routs, that meltdown, call it what you want -- we were joking during the break, double bear market. 40% from the peak we had a valentine's day. rishaad: interesting to see if there has been any contagion. or not just asian markets. having a quick look of what is going on and checking in with the likes of the -- also in vietnam. vietnam up .8%. we still have that 24 trillion -- for the virus making news. at the same time singapore figures in as well. they start quarantine free travel in september. philippines paring monday's sharp drop after moody sustained its sustainable credit outlook. we got at the moment, up -- by 1.4%. the toccata market, the boss will extend some trading hours -- in the jakarta market. yvonne: take a look at the key stories we are watching across other regions. singapore, allowing quarantine free travel in september even as a struggles to control an outbreak of the delta variant. myanmar -- has the results of the l

tencent music taking a hit in response.eclines across the board in this group, so that 40 print -- that 40% drop since february is going to get your for sure once trading begins today. lisa: some money managers saying chinese equities are becoming un-investable because of regulatory uncertain. it is unclear where chinese officials are going to crack down next, if they are willing to go after some of the biggest and most successful of their industries. is there some sort of coherence behind some of the regulations being rolled out, or some sort of guidepost with respect to how the chinese demographic is changing? dave: but it comes down to is the government is trying to get its arms around these companies. they have so much data in a lot of cases. think about didi global, now down more than half and's when it was sold. these are coming up in terms of the enforcement actions. it is all about reining in all a lot of companies, especially those that have plenty of data that the government would love to see. tom: for those of yo

woods ark invest has been selling its holdings in tencent, et cetera. joining us is frank sarian and steve off. thank you very much for being here steve, if i might just start with you to lay out the macro picture here we mentioned some of kathy woods' calls this is a story driven market receipt now. what stories do you think are driving most of the trading action is it a very macro invasion crackdowns or very micro like bank earnings? >> right now the stories are the covid relapse potentially which we don't buy at all and concerns about fed poll is he we're on the opposite side of kathy on the number. significantly high yield, $90 target under invested for a very long time supply is not there. demand is surging. we've got inflation continuing pretty high here over the next several months we think we're looking at nominal gdp this year around 10% and something like maybe 6 to 8 next year. so this is an environment where earnings are really soaring, particularly ofn the cyclicals and financials we're continuing to lean into that it's going to be choppy a

companies there now taking aim at tencent >>> richard branson kicking off the billionaire sp

the company has a big stake in tencent.nt underperforming with rest of the china story, china's crackdown on tech and education. finally credit suisse has settled with their former wealth manager over the spying scandal. they also report earnings soon. all of that means more optimism injected into credit suisse shares. at least this one is now over. alix: "this one." well said. this week is also a big week for european banks. we have santander, barclays, deutsche bank, then unicredit on friday. i want to get the low down and what are the key metrics to look at. morgan stanley head of european banks research joins us now. what is the most important number to look at. who is best prepped for it? >> the markets are going to be looking at -- we are used to the fact that the credit cycle is looking much better, provisions are looking much better. the market is looking slightly further away to see how the business models of the banks have gone through the pandemic and what to expect. people will look at the net interest income, t

-- tencent eating the go-ahead and the purchase of an internet company.dman sachs will set the tenor and tone. tech did well last night and the dollar index just flat. i think that is much more to do with delta and the risk from covid-19 in the back half of the year. and the end potentially of on qe. let's reset and talk about what was a soaring first half of the year for u.s. bank stocks, wasn't it? that has come under pressure. second-quarter earnings get deliver the next couple of days. the pullback began early in june, that was when jamie dimon and mark mason signaled insults will not be as strong as expected. let's get to octavia founder and ceo. jp morgan and goldman sachs will raise the curtain. what will be the drive, the reserve release, or the drop in trading? which will be more important to the equity valuation? good morning. in u.s. bank stocks? >> in u.s. bank stocks, it is up to the bank how much they want to release the reserves they put away. they have a broad latitude in terms of doing that, is not like trading revenues where you make mon

apple, alphabet, facebook and amazon also on tap the china crack kdown, beijing targeting both on tencents music licensing and the entire tutoring industry fueling further tensions between the world's top two economies. bitcoin hits its highest level in six weeks, amazon now reportedly considering accepting crypto payments. we are going to start with the china flurry of headlines, jim, whether we had a downgraded didi are from atlanta today just because the regulatory environment there is changing so quickly. >> it is amazing we all thought that perhaps what should happen is united states should block chinese companies from listing here, we shouldn't fund them that had been a big issue with the previous administration. turns out they don't want our money. it seems like they want to destroy american stocks. it's very difficult because eunice has done some amazing reporting, but let's just take a bank of america piece today about the downgrading of the after school training, we're talking about some very, very liquid stocks. and they're saying there's a policy to -- sorry, but to reduce the

i think one of the early gainers, the bargain hunters was around tencent. but that is back under pressure again. there is really a lot to analyze, and remember, yesterday, all the real drama happened in the last hour of chinese market trading, the last two hours of hong kong market trading. 24 hours ago, chinese markets were only slightly down and really tight at the close. people are nervous today. anna: we will certainly look out for that in case it echoes. let's go to the barclays numbers again. just need to correct something we gave you. on that cib, investment banking revenue, q2 revenue of 2.9 billion, a little all investment of 3.0 4 billion. we will wait to see how that compares to the previous year and how it compares to civ versus the previous year. we are looking at a sort of normalization in the investment banking part of the business. on the positive side, they go on to say credit impairments, they are managing to release to -- planning to release 7.97 million pounds worth of impairment, a better assessment than previously as we work toward ful

and for profit education tencent is down after wechat suspends registration of new users to go through to align with regulations and laws and hang seng is down today. the biggest one day drop since it launched last year. let's talk about this with our cnbc contributor dewardric, thanks for being here >> good to be here. >> some are scratching our heads a little bit can you talk about the issue about the chinese regulators and the impact in the u.s. data privacy >> good question, frank. when this started in november of 2020, most people thought that this was a jack ma issue if you recall, regulators called in two dozen companies for tea, as they call it. they wanted to focus on how the companies are run at home. they were large consumer protection usuaissue s. what we have seen since november is data security is important to the chinese government they are concerned, frank, about the holding foreign companies accountable act. the chinese fear that data, once these companies have to open up books, under this particular u.s. law, that somehow sensitive data will fall through the hands. no

china's tencent holdings is expanding new user registrations for its wechat services.inty for the tech sector in the midst of a two day selloff. investors have left tencent and its peers after china announced the toughest ever curve on industry. beijing also issued a series of other edicts for governing online activity. goldman sachs plans to offer a cryptocurrency related exchange traded fund. the fund will focus on decentralized finance and blockchain companies. numerous companies have been going public in recent months. that is the bloomberg business flash. alix: thank you so much. appreciate that. i found that interesting. it is in some ways no surprise that goldman sachs asset antigens will be getting into it because you've got to find a way for them to meet it. i just feel like it is going to be quite confusing for investors to understand what you are owning until those rules and regulations are clear. dani: that is such an excellent point. presumably a lot of the companies in this index are different, they are involved in different parts of that as well. of cour

tencent says it will rectify the situation.e made for investors of all kinds to buy shares, opening to the public a roadshow reserved for institutional players. in the live-streamed presentation, a leadership team responded to customer questions about its business model and growth plans. it is allocating as much as 35% of shares for traders from its own app and is expected to start trading july 29. ticket sales down 20% on last week. new releases include the next installment of the g.i. joe franchise, and they struggled to attract fans. they are running 77% below 2019 levels as the industry struggles terrain -- to maintain recovery momentum. haidi: let's look ahead on this monday morning for australia and new zealand. we are watching for more fallout from the anti-lockdown protests. scott morrison saying he plans to set new vaccination targets for the country. new zealand will get trade data in about 15 minutes time. we will bring you those as they get to us. and australia has succeeded in efforts to prevent the great barrier r

regulators were slapping fines on tencent after the past merger to create tencent music and the food tldelivery company was beig clamped down and they needed to make sure that they adhere to the rights of the delivery staff. so all of that, of course, affecting sentiment. separately, the u.s. and china talks appear to be off to a rocky start as you know. the u.s. deputy of state wendy sherman is in nearby beijing and it sounds like she got an earful from her chinese counterpart who essentially described the biden administration's focus on competition as a guise to suppress china guys. >> i wish we had a crystal ball, eunice we talk to you a lot now it seems to be a different story every day we're following. also in crypto and tencent story that is coming out as well i wonder what's the end result will we go through a period where we aren't having a new piece every couple of days or every week we all have to watch this closely for our markets here >> reporter: yeah. definitely a ton of uncertainty right now when you mentioned the big push for control from the government for a variety

tencent is the largest gaming company of the world.groupj trading price which you can see is up almost 100%. also focusing on airlines. as if the traffic light system has not already got us scratching our heads, france has its own category, and amber's special category for france where you will still have to quarantine if you -- even if you are double quarantined. keeping an eye on airlines. the biggest story in england is the reopening story. that could also have an impact on travel and leisure names. coming up on this program, we will bring you the market open. futures pointing decidedly to the downside. the session on friday was dominated by negativity around the delta variant whether it is here in europe or the united states. the session through the asia time zone has been negative but a lot of that has to do with technology stocks listed in hong kong. we will see how that will cross into europe. this is bloomberg. ♪rope. this is bloomberg. ♪ anna: welcome back to the european market open. a minute to go. freedom day chaos. england

well, china's cyber regulators, as you mentioned, have ordered alibaba, tencent, waybo to clean up theirnt a clean summer vacation for tech and that means rectifying any videos, gifs or other meadia that could harm children not providing rigorous enough controls for parents now alibaba, tencent and waybo have been hit with unspecified fines. >>> in hong kong authorities have arrested another person from the apple daily they have detained 51-year-old editor in chief for allegedly, quote, conspiring to collude with foreign forces to endanger national security. this comes after police raided the paper in june on the premise that is it may have violated the national security law. this also comes as the city has been debating and starting a new discussion on antidocsing and oppressing any opposition voices the government has said it's necessary to fix what it sees as a problem so it could make it easier to prosecute protesters who dig up information on police and officials and make it public activists such as facebook, twitter and google warn the language is too vague and say if the legislati

tencent holding, then alibaba. in the case of this crackdown, maybe those can hold up better.oline: in terms of price action. claire valentine, all things for today china and meanwhile, china lashed out at u.s. policies. saying their relationship is in a stalemate. let's talk policy for china. >> i am standing outside the number one resort in eastern china. that is where top diplomats from the u.s. and china met to discuss relations between the two countries. these relations in recent weeks and months have been to -- have been deteriorating further. on the u.s. side, issues ranging from human rights in xinjiang hong kong, the south china sea and taiwan. the u.s. side stressed to china, u.s. collaboration with allies is not meant to be seen as a u.s.-china threat. on the other hand, china pushed back saying it does not accept american interference in what it calls domestic affairs and will not be lectured to by the u.s. the next big question, will this meeting lead to another meeting of president xi asian and president joe biden? maybe another set of meetings between the summit

china is not just cracking down on didi, the country's market regulator also blocking tencent 's plana's top two video game streaming sites, and tencent is the majority shareholder, owns a third and both are trading down by 3%, 8% and about 2% after that deal got terminated and now remember the wall street journal reporting that the chinese owner of tiktok, bitedance has put off its offshore ipo plans, put them on hold maybe indefinitely after the chinese government asked the company to focus on data security risks. the journal reports that bite dance decided to postpone its ipo back in march so didi went ahead and probably needed the money more, bitedance decided to listen to chinese authorities. well, the ongoing semiconductor shortage is still taking a toll on the auto industry, with ford now shutting down and reducing production at six u.s. plants throughout the month of july. ford competitors also announcing that the shortage will be cutting production of popular models like the ram 1,500 pickup , the jeep grand cherokee for yeah, another week. right now ford stock, not feeling t

tencent is currently down close to 4% in hong kong. entire chinese tech sectors as well.estors are saying that the probe adds to regulatory uncertainty surrounding it. the entire sector, and some analysts point to the fact that it discourages other chinese companies from seeking listings in the u.s. going forward. anna: you have to wonder if that is the point of this. there are others being probed. and they are also listed in the united states. >> that's right, so earlier today, they announced new probes into trucking companies for truck alliance and recruitments of the -- they raised about $2.5 billion together and one thing they have in common is they are backed by tencent. it is unclear if that has anything to do with the troubles but you know, it is basically along the same lines, data, security, data gathering practices. anna: thanks very much. our guests from bloomberg news in hong kong. a lot to talk about when it comes to this didi story, the specifics and the other companies caught up in this as you were just hearing from our guests. they are being probed around

the hang seng index includes names tencent and alibaba. major companies. it is massively down.nly the worst move since february went peaked out. what is interesting is the hang seng is not at right -- is not back at record highs. this chart -- the orange line is the 2019 closing. we are down from that level and this is just wave after wave of chinese policy hurting these stocks which may be discounted but there is no end to this pain. i think the consequences are global. if you are in your, you might be wondering how much of a crossover there is. this stockmarket, hong kong alone is twice as large as the u.k. stock market in terms of a market cap. the wealthy and -- the wealth impact will be very big. i think we will see more risk aversion. anna: this does have read across into other global markets. let's get some of the top corporate stories. laura: phillips has announced a share buyback program worth as much as $1.8 billion after profits rose in the second quarter. it is planning to buy back as much as 4% of stock over a three-year period beginning this quarter. it has been m

the hong kong stock market and the key thing is we have seen this happen before, in the past, with tencentand the gains not approved by the government, they had to be taken down for a few days and it is something that could be fixed, but the amount of time, it's not going to be fast. it's something that many chinese companies are learning about, the new data security laws. for the rest of the year it will be tough for chinese companies to go public in the u.s.. 8 what are -- caroline: what are you thinking about as an investor, with chinese exposure and such risk and how they get it? edith: what's really interesting, not just for vc but for many u.s. investors, now more and more even though it seems like it's getting more difficult for chinese companies to get here, it's not really stopping u.s. venture capital or u.s. investors from investing in china or hong kong. so, in some sense i think flexibility for the investor does more than chinese companies coming over. in this sense it's not necessarily a bad thing for investors, per se, but we are taking precautions and advising private compa

tencent jumping the most since january, but remember this is a stock that has been heavily sold off thiseek. it's lost $170 billion in value in the course of july. it was down 20 people -- 23% in the month of july. is it going to last? that is the big question. j.p. morgan says you have to look at what they are seeing in inflow. they say there are other indicators they're looking at that could signal the massive outflows you've seen from foreign investors could just be the beginning rather than the end of the outflow phase. manus: $2 billion investment on monday. did he yank any money out of china? a continuation these past seven days has been monumental. have you taken money out of china or is it too late? yogi: we didn't take money out of china, is too early to be thinking about it. china is a $14.7 trillion economy. valuations are reasonable and it is essentially back in its territory after this morning. despite the regulatory crackdown. there have been some changes in senior government positions and some challenges. they have focused on a whole range of sectors, particularly technolo

but there is a really big tencent deal acquisition that did get approved by chinese regulatory authorities to show you the spillover effect into other stocks. there has been the issue of some antitrust scrutiny weighing on the stocks. today, a little bit of that pressure was taken off. these indexes are all in the green, helping on a day with the u.s. stock market saw a drop. apple released some news they are going to be creating a payments firm with goldman sachs , one that would rival the likes of paypal and you can see that helped apple shares. but facebook and amazon are not doing so well. microsoft is in the green, not enough to lift u.s. stocks. emily: a good day for microsoft. we have got the ceo on the show tomorrow. thank you for that update. i want to turn now to employee wellness. arianna huffington launched thrive global to help employees focus on personal health and minimize burnout. they work with hundreds of organizations and just raised an additional $80 million in funding. arianna huffington, founder and ceo of thrive, great to have you back on the show. the pandemic has t

for example in shenzhen of tencent and this takes us into a broader read when you look at market capthe decline we have seen their. we talked about this last week, the price down 30% also roughly the drawdown when it comes to the market cap. so we have gone from 3 trillion if you put all of these big tech stocks together in china. we are now south of 2.4 and flirting with 2.3 trillion on that side of your screen. so the hit of about 750 billion in terms of the market cap which is taken off the table. yvonne: and talk about their combined fortunes of these billionaires it shrunk by $16 billion from what we have seen so far in the first half of this year. so, china adding more rules for these companies, looking to list overseas is going to add to headaches as regulators tried to boost oversight of the countries tech giants. they target firms holding large amount of user data. now details from our china government reporter. lucille, tell us about the implications of these new rules? >> because the new data review rules apply specifically to companies that want to list in foreign countri

what they were doing so far, tech companies including alibaba and tencent, they were incorporated overseasnd places like the cayman islands, british virgin islands, they transferred into an offshore entity and those shares could be owned by ford investors. beijing is looking to have that structure, they need to seek approval from beijing before they go about doing that. of course, that puts a lot of the spotlight on these upcoming potential ipo's. there was a secret u.s. initial public offering, they filed it confidentially. we will watch within might do. caroline: the owner of tiktok, plenty of people wondering on that one. bankers wondering as well. there must've been negotiations, u.s. bankers out there who wanted. shery: when it comes to didi for example, jp morgan, goldman sachs, morgan stanley where the underwriters. such big profits on chinese companies listing in the u.s.. they are the biggest losers here. not to mention, obviously, the chinese tech companies. this chart on the bloomberg showing how chinese tech companies trading in hong kong have slumped 30% from the february high

i could be mistaken, but tencent was one of the big bets. here we go, there's the drawdown.r 25% from their peak. we are now pushing 27%, even 28% from that peak in march. yvonne: crazy. thanks, dave. goldman sachs preparing to move its japanese headquarters into a new tower due for completion in 2023. why has goldman decided to move? grace: actually, it comes as no surprise to a lot of people in the industry because goldman is known for its steps with office work and a lot of offices around the world with the pandemic quieting down, returning jobs in such places like new york and hong kong. obviously, places like goldman are going back. they have been looking for a place to move for quite some time, and they decided to stick to japan and move to a new office. yvonne: tell us about the new area goldman sachs is moving to as well. >> yeah. the new area goldman is moving to is not far from the current area they are residing. it will be in a similar area. they will be moving to the 49-story-high building connecting to the station. juliette: is returning to office work common, o