tencent losing 2.5%.t may be facing at an impending crackdown on social media and gaming companies. people have not quite believed it yet. the golden china dragon index is down. we will see how this looks when the market opens a couple hours from now. let us get more on the bloomberg's group that china is asking banks and state owned enterprises to report their exposure to ant group. jon liu joins us now. you have broken the news, what kind of reaction are you getting? >> i think what we have been reporting, that has been adding suspicion to a market thinking that the technology crackdown may not have ended as expected. we had these warnings about scams on the metaverse over the weekend. we had these rumors online about tencent. adding onto that is the news that state owned firms have been told to review all of their links to ant group. the report back to authorities as soon as possible. we do not know what the catalyst for the investigation was, we do not know if it is would result in some sort of legal

questions about tencent and if they are going to get a harsher crackdown.ther property developer which was doing fine. you are so positive about china? -- still positive about china? >> there is a lot of near-term risk and ongoing uncertainty and some regulator he uncertainty -- regulatory uncertainty. they do not want weaker growth. you will see policy moves to support that over the next six months. >> the french economy minister says president emmanuel macron has triggered a possible meeting between west and russia. what options are available if de-escalation of tensions does not work. >> geopolitics is dominating with a huge forceful role that russia -- france is trying to play to ease the tensions. what kind of impact with sanctions on russia have on the french economy? >> it would have a deep impact on russia. on the russian economy and interest. it is time for de-escalation. it is time for diplomacy. there has been a major effort made by emmanuel macron and the possibility of having a meeting between vladimir putin and president biden. two leaders agr

this is a great example of that yesterday with tencent. there were some rumors of another crackdown, someone recirculated a post after a year. lots of things that just show up on social media and everyone just hits cell, asks questions later and that is the environment we are stuck in. we have the food delivery companies, we are seeing the news right now. it is clear that the headwinds from regulatory crackdowns are by no means clear yet. corrects when you look at tencent, the valuation has been stuck at a low since july. a lot of investors look at the start up as pretty cheap. what is your view on the possibility for multiple expansions in 2022 to help reverse some of the wipeout in 2021. >> when it comes to tencent, we are waiting for a catalyst to drive a new valuation regime to take us back to higher multiples. what we saw in the 2018 and 2019 crackdown really focused on when there is visibility to where new game license approvals would come through. we think it is going to be the same case this time around. game approvals have been fr

tencent saying it strongly disagrees with the u.s. market label and the other important factor is that humble and meta- have seen it out of the top 10 most valuable companies in the world replaced by tencent which has risen 8% this year. manus: we love the top 10 billboard on this show. thank you. the st. louis fed chief jim bullard says the central bank may need to overshoot the neutral rates to bring down inflation. he is pulling again for the 100 basis point hike by july. let's bring in our chief asia economics correspondent enda curran. we know the rhetoric from bullard, but this time he is doubling down. not just on 100 basis points, but go beyond neutral. if you can define neutral, that would be a good starting point. >> exactly. he is saying neutral is around 2%. it is a hawkish call. in the near time he's pushing for at least 100 basis points of hikes by july. we also have comments from the cleveland fed president, in the hawkish camp. not in the same terms as bullard, but she is saying yes, we need to hike rates. comments wer

tencent came out afterwards saying there is no truth to this. time there were some warnings from state authorities about the metaverse and the fact it is rife with scams. that does not deter companies like tencent if it is predictive of a broader -- anna: we sought stories around ant group. this is been a company that has in the crosshairs for a long time. alex: ant group was supposed ipo during the lockdown and never did because there was a huge push back from china. it has its fingers in a lot of pies. china was saying there state own firmed to evaluate the relationships with aunt group, we do not know what that means, but it does not suggest it is terribly bullish. anna: i talk to an investor earlier on who was saying it is unclear what room there is for private investment, private money in the common prosperity drive xi has underway. until we get more clarity it is difficult to reach firm conclusions. alex: and it is reflective of the valuations of this company. if you look at a company like tencent it seems the discount is priced in. if it

added commerce sites operated by alibaba and tencent to the system on facilitating trademark counterfeitingding on the list is the blow to the reputation of companies, but does not have direct penalties alibaba will work across the platforms and tencent was committed to working collaboratively to resolve this matter >>> and tesla has altered ads about the driving range of the model 3 cars in south korea after regulators challenged the ev maker's claims. the description on the web site in the country says the car is capable of traveling 328 miles when fully charged it previously claimed more than that regulators say tesla will be given the chance to respond to the claims brian, the mileage change likely won't have a major impact on tesla which is the dominant ev leader in south korea. >> i'll be a dork and tell you i still read actual magazines. i was reading "car & driver" and they reviewed the rivean truck it is beautiful. fast and fun to drive. they towed a 5,000 pound car with it. the observed mileage was 108 miles per charge if you are towing something, 108 miles per charge will not do

alibaba got caught in the ant audit and tencent got caught in metaverse scrutiny.dia rumors about a new gaming crackdown, which tencent denied. in the last three trading days, those three giants lost $100 million in market value. interesting thing this time around, there is no consensus on market participants as to why beijing all of a sudden renewed the crackdown. it does seem some people are saying those companies are still the most profitable in the economy and they should do some national service as the economy slows, according to beijing. haidi: our asia stocks managing editor ahead of the open. in the meantime, what to look out for in the hong kong budget, ing bank's iris paying is coming up and also when he will -- winnie woo. that is it for "bloomberg daybreak: asia," stay with us, "bloomberg markets: china open" is next. this is bloomberg. ♪ it's -- yvonne: you are watching "bloomberg markets: china open." on yvonne man with david ingles, bank of new zealand hike of 25 basis points, from central bank of new zealand. this was seen by most economists here. t

the show will be available on tencent from friday. friends was first introduced in china in 2012.ces since. the latest release is notable given china's growing -- restrictions on american entertainment. global news 24 hours a day on air and on bloomberg quicktake powered by 2700 journalists and analysts in 120 countries. i am vonnie quinn. this is bloomberg. rishaad: i guess -- thanks, vonnie. let's look at hong kong, 600 new covid-19 cases. health officials saying they are facing a critical situation and are considering further restrictions. let's get the latest and get to the chief north asia correspondent stephen engle in the territory. is this covid zero becoming a pipedream? stephen: well, you know some would say it was successful up until this latest omicron outbreak. they kept hong kong fairly safe with few un traceable cases but that is not the case now over the last month, especially the last three days and you are right. numerous local media, not necessarily citing where they got the information but there are reporting today that the government will likely announce more

biggest e—commerce sites, ali—express and wechat, operated by the two chinese tech giants alibaba and tencentncuding tariffs and intellectual property theft. stay with us on bbc news, still to come... london fashion week kicks off with sustainable fashion at the centre nine years and 15,000 deaths after going two in afghanistan their last soviet troops were finally coming home. the completed good order but the army defeated in the task it had been sent to perform. murder has a terrible effect for the morale of the people and i'm terrified of the repercussions in the streets and you wonder who is next. as the airlift got under way, there — as the airlift got under way, there was no letup in the abruption itself. lava streams from — abruption itself. lava streams from low _ abruption itself. lava streams from low in the greater flow down — from low in the greater flow down to _ from low in the greater flow down to the sea on the east of the island~ _ down to the sea on the east of the island. it could start flowing _ the island. it could start flowing again at any time. the russians heralded at

every tencent increase in retail gas prices is about a $10 billion annualized it to consumer budgetsen stacking up, and it is been stacking up with other inflationary pressures. we've been seeing real wages in the red for most groups at the lower end of the wake spectrum. if energy keeps creeping up, i think that is where you start to get more concerned about the pace of consumer activity before we get to the second half of the year. lisa: is there a precedent for how quickly the economy can shift in response to a shock like this given all of the strength you've been talking about we are seeing in corporate balance sheets and beyond? robert: absolutely. things can certainly turn fast. it comes down to where are the fundamentals and that is the labor market. we have seen job growth with incredible momentum from aggregate incomes grown strongly , wage growth still growing strongly. still a lot of positive tailwinds and placed up the domestic economic expansion going strong this year. things can turn fast, and when they turn fast it tends to be transmitted through this financial shocks,

if you look at the valuations, tencent is valued at about 27 times forward earnings.s which may give people cause for concern. so you go looking for bargains in china, or does this latest news flow make that less likely as well? niladri: that is less likely, i have to say, because china has made it very clear the new common prosperity policy is really their governing philosophy, their economic philosophy right now, and they are going to continue down this path of putting pressure on their mega cap big companies, which have a lot of heft and they are strong in their own industries. they will put pressure on them to be a little more socially inclusive. that just means there's going to be downward pressure on their return on equities. even if some parts of the market may start looking cheap, i think that valuation discount is worried because of the fact that there is less transparency on their business model. i have no doubt that china will do extremely well in the area of technology, and they believe in this concept of national champions. these companies will thrive in

in discovery, ramming tencent thousands of internal documents including campaign's towards young men.nership with your man card. >> they were aggressively marketing to young men who are pro eventually more violence prone. >> they lost their son daniel. >> people need to know how irresponsible the gun industry is about marketing these weapons. >> that was our goal. for it to be known. >> do you think you have achieved that? >> yes. i do. >> running ten did not respond to our request for comment and the families refuse to settle until they win the right to release the documents publicly. >> was that key for you? >> yes, absolutely, that was critical, this is never been about money. for insurance companies will pay the 73 million. nicole hawk, who lost her son dylan, hopes this will put them on notice to. >> i worked in insurance for a number of years doing marketing for them. this will absolutely make them change their practices. >> change that these families hopes will save lives. kate snow, nbc news, trouble, connecticut. >> coming up, powerful words from a u.s. olympic gold medalist,

see ya next time >>> meantime, chinese tech tencent falling amid speculation of further regulation froma company spokesman denies reports. hang seng is down 2% on the heels of the mooufves out of ukraine. "tech check" will be right back. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your

china tech not doing great 5% lower for the week with alibaba and tencent losing about 10%.ba had the slowest revenue growth since going public, and now to frank with our cnbc news update >> always good to see you. here's what's happening. we are here. that's the message from the ukrainian president. he shot a short video showing him and a top government official in key v. he says they are staying to protect the independence of their country. the white house says president biden finished a 40-minute phone call with zelensky yn y about an hour ago >>> the soccer finals moved to paris. formula one racing cancelled the russian grand prix, and a song contest, one of the largest contests in the world, said there will be no russian participants this year nato leaders are sending parts of the rapid response force to eastern europe to protect allies following the inkrags of ukraine. that's in addition to recent troops on the news, the cdc is expected to ease mask requirements. what it means for mask rules of states and companies that's tonight at 7:00 eastern that's the latest. >> t

know it's pretty much every chinese tech firm that you can possibly think about there it could be tencent name it. and the chinese government is going to have a heavy hand in all of it. to your point, i don't know what any of these companies can say do they say we've met with regulators and have an understanding? maybe that would change sentiment. it's unlikely that's going to happen any time soon >> what's the trade here >> i think the trade for us has been to hold the small allocation we have alibaba was a big winner during the height of the pandemic especially when you look at the political regulatory framework overseas, that's the big reason why the allegation has not increased. and won't increase for some time i think we're seeing growth slow especially on the bottom line. that's obviously concerning. but the company is obviously one of the best in the market. we talk about e-commerce and their cloud platform, but just for now, for us, we're looking at the framework, it's an opaque situation. we can't get a certain read. we're not going to increase allegations to alibaba at this time

we have seen a bounceback, tencent up 0.25%, after we heard from the u.s.t that piracy listing and the strong disagreement being put on this notorious list. front and center is about ukraine. haslinda: let's get to the white house and kremlin agreeing to top-level talks. let's get the details and market reaction. let's start with what we know so far on the topic. >> we know the u.s. secretary of state antony blinken has proposed this meeting with his russian counterpart, and the russians have accepted according to the u.s. state department. the meeting has get to have a specific date, but we are looking at sometime late next week, which could mean there is a certain amount of time for diplomacy to continue. we also know that yesterday the eu leaders agreed to a proposal of potential sanctions that would include energy, and those would be applied if there were russian military action in ukraine soon. russia has said it has no intention of invading. russia said it will be concluding military exercises with belarus this weekend, and will be drawing down its fo

tencent has also increased didi ownership to 7.4% from 6.4 percent previously, and we saw didi gaining thursday session. they can look at some futures we are watching, because u.s. futures are accelerating those losses to -- down about half a percent at the moment, after u.s. stocks sank in the work session -- the new york session, reversing gains we saw earlier in the week. we already had some pretty challenging market sentiment, given that we got the hottest inflation print in more than 40 years, but at the same time we have the st. louis fed president, out and call for rates to be hiked by a full percentage point by july. that did not really sit well with the equity markets. and we are seeing the offshore yuan holding, back to the 36 level, although japan is closed, we are watching the japanese yen, because it is at the 1.16 level, week against the u.s. dollar. haidi: that is about it for daybreak: asia. architect continues. we are taking a look ahead at the start of trading in hong kong, shanghai and shenzhen. the china open is next. ♪ >> happy friday morning from the asia-pacific.

targets for mentalist on each of those dogs, and what that tells us is with the likes of alibaba, tencentthe price targets over the next 12 months do not even get too close to the 52 regard. yes, we are going to get a rally. not to the extent we were told months ago. shery: what does the data show you in terms of where the best opportunities are? >> so far, when you look at the same metrics it is in the lives of a company in china. specify an limit you miss universe. there is substantial upside seen by analysts. a lot of it is not intact, -- in tech. these are based objections and if you had followed your brokers and advisers you would've sent them a written letter this point. haidi: in case we forgot there are still problems in the property sector. >> yes, and the two stories with draghi today as you have general questions about his being able to redeem that. very quickly another company with a big development, it is teaching -- seeking an extension. 35 figure after that the rest in 2024. shery: stay with them because markets coverage continues. that is it for "daybreak: asia. we will be

volatility positions in underlying stocks, especially technology stocks, in the big stocks, alibaba, tencentmpanies, there has been a lot of opportunity, not so much -- which has been it's a vessel trotted -- strategy, trading on volatility and being able to hedge as stocks go up and down. that environment is definitely conducive for hedge fund type of business. haidi: one of the things that is surprising maybe not long-term china watchers, but debt related to the credit market, particularly with everything that has happened with property. does that tell you about the development of onshore and offshore credit markets in china, the risks involved and the associated opportunities if you are willing to swallow that risk? benjamin: that's a great question. short-term it has created a lot of volatility downside and it has been painful for people that have been involved in china for 10 or 20 years and watching these markets develop. in the intermediate term, i think we are seeing the markets mature and part of that is going through down cycles and seeing how the systems and in the various compani

has added platforms run by alibaba and tencent with the most notorious abusers of intellectual propertiesst ahead. this is bloomberg. ♪ haidi: we chat in the online marketplace have been added. this is part of the annual competition of the worst ip abusers. let's bring out our bloomberg trade reporter. one of the indications of this for the company and the broader trading relationships? >> sure, this is the latest in number of moves that we have seen by the biden administration two, and there were told china accountable on trade. they've made a lot of accusations, as have passed demonstrations about china's unfair practices like industrial subsidies, and this one goes after e-commerce not -- e-commerce and online marketplaces. the impact that counterfeit goods that are sold in aliexpress, which is part of alibaba, and $.10 we chat, which has more than one billion users globally. counterfeit goods and intellectual property theft that happens behind the goods that are sold in these marketplaces. so these are two new additions to this annual lift. shery: there are so many different grievance

the show will be richer -- will be available to platforms including tencent at a pace of one season perintroduced in china in 2012 and has come and gone on a variety of local streaming services. the latest release is notable giving china's restrictions on american entertainment. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: central bank tightening in the west reports prices in the east. bloomberg's economics policy at her kathleen hays is here with the latest. what are we talking about when it comes to the mechanism the in drc is adding on? >> the national involvement of the commission putting out a statement over the weekend. what they're looking at is central banks, federal reserve's getting ready for march. bank of england has already moved. that is going to hit their economies and that is going to hit demand particularly for commodities. dampen commodity prices that will keep a lid on china's inflation rate. this chart shows you as china's ppi ea

tencent music is off, pinduoduo also down in the past few days and hong kong's hang sen index down 5%e past few days and the latest crackdown comes as authorities continue to roll out new initiatives for the country's tech sector to keep financial risks under control. >> thank you >> still to come, fund strat's tom lee says the bull case for equities is still in tact even over cases for the fed, russia, inflation. >> plus, shares of virgin galactic are falling and have been cut nearly in half this year we'll get the latest read on the space company come earnings hit after the close. >> as we head to break, here is a check on bonds yields are mostly higher now after an up and down session the ten-year yielding around 1.94%, about 1.93% right now "closing bell" will be right back (vo) some bonds last a lifetime. some bonds inspire confidence, and some you grow to rely on. these are the bonds worth investing in. for over 50 years, pimco has reinvented fixed income to create opportunities for investors in every market environment. so, no matter what happens you can build the bonds that me

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