how does tencent monetize that?ere has been plenty of ai, but a high is similar -- ai is similar when the internet companies introduce the fees to the advertising system. every company developed its own technology based on ai, because every company has its own data, and some company is focused on e-commerce, some company is focused on gaming, so while they can largely reduce developers and artists. the other thing is more a productive thing in terms of generating revenue, so i think that is because a lot of tencent are based on large dau, which means a lot of players need to play against each other, so ai will create a feeling for these players, that i'm playing with others, not computers. in terms of advertising, that is where ai will help a lot of merchants to create the video and also the ads and videos for tencent and that has helped to reduce the merchant cause. so that will be a long-term thing, but so far tencent says revenue will rise. i think that is the right attitude. >> tencent talked about cutting fat a

tencent is the next one to watch.d: we'll unpack what the tencent story and what the green shoots might be when they come out with the earnings story when talking to analysts earlier on -- later on. the market seems confident that we will not get the boogeyman in the fed tonight. we will talk tencent in a couple of minutes here >> the reopening is definitely supportive of the ad spending and there's an additional layer for tencent because now that approval has resumed, we expect publishers and manufacturers will have higher willingness to expand their ads budget a little bit, so this is going to be beneficial for large advertising platforms for gaming. >> the companies are looking at much larger business than previously, it's a more mature state of development. like a meandering river, can expect it to live it the same growth rates today that it did three or four years ago, but there has been a structural change in markets. and regulations impacting multiple parts of the business, so it's still a very fine business th

tencent, baidu and jd up. let's get more on the top story and bring in our chief correspond, he has been breaking the since last night. >> the ba ba babies. six new babies coming from alibaba. are the some of these six parts greater than the whole that was alibaba before the downfall, if you will in october of 2020 when the ant ipo was scuppered. this stock has been in limbo. it became a behemoth, it was an 800 billion dollar valued company, and many different businesses. if you add to that regulatory overhang on it, it became a shackled giant, it couldn't expand to the way it used to. it was being saddled with unprofitable divisions. they couldn't go into areas because of the regulation into areas that were providing the growth. that's where the market is celebrating. it goes back to the question, is the sum of all these parts greater than that $800 billion that was before. it's $220 billion of value of companies, gloucester $500 billion in market value. if you look at it divisions and start picking out each

tencent revenue growth. we get a better look at those numbers next. is bloomberg. ♪ the new chase ink business premier card is made for people like sam who make...? ...everyday products... ...designed smarter. like a smart coffee grinder - that orders fresh beans for you. oh, genius! for more breakthroughs like that... ...i need a breakthrough card... like ours! with 2.5% cash back on purchases of $5,000 or more... plus unlimited 2% cash back on all other purchases! and with greater spending potential, sam can keep making smart ideas... ...a brilliant reality! the new ink business premier card from chase for business. make more of what's yours. >> coinbase ceo says he welcomes the sec plan to take enforcement action against the exchange. we got this after the market was closed and we saw coinbase post market dropped 10% on this news. this is upping the ante on the exchange. what happens next? >> it looks like we might be facing -- coinbase has been very clear they want to defend that position. the sec has been aggressive and since the collapse of ftx

there is also tencent and jd so it will be -- alibaba, i don't want to call it a guinea pig.is the pioneer. it is the first country in china to do this in recent emory so this is a blueprint. -- in recent memory so this is a blueprint. ed: thank you so much. over 1100 ai leaders and experts are urging a halt to training powerful ai systems like chatgpt and its latest form. we will have the story next and elon musk is speaking off. he was one of the signings of the letter and we are taking a look at shares of tesla, of two percentage points in possession. eb stocks are high --ev stocks are high. you will get numbers over the weekend and we will see how those look and analyst expectations are mixed going into that print. this is bloomberg. ♪ ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com as a business owner, your bottom line is always top of mi

yvonne: tencent earnings is in focus.e up 5%, lifting sentiment overall in hong kong and the rest of the region. we are talking about more about gains in asia. the weaker dollar is helping things. it's helping some of these tech names like alibaba, bilibili heading in the opposite direction. haslinda: of course tencent playing up the international gaming in ai, potential. here is how it is looking in u.s. futures, pointing to a higher open, .4%, after slumping after the fed meeting. we had jerome powell pushing back on rate cuts this year. the bond market, not listing -- listening to what fed powell has to say. citigroup ceo says the u.s. banking system is sound and the fallout is not something that will spread across the industry. we spoke with -- he spoke with david rubenstein at economic club at washington event. >> the fed's job is fighting inflation. we want the fed to be very dependable in fighting inflation. that should be. there most important priority. there are ramifications. but, there are certain banks, isolat

i think tencent will see further spinoffs. we saw tencent spin off its music unit.rent structure relative to the united states because tech giants do everything. as a result of that, they have huge numbers of business lines. in the chat gdp space, every one of the major five tech players have their own business there and could ultimately spin that out so it is a trend you will see continuously. kathleen: it seems that crackdown came at a cost to a certain extent. would you say that now, this was a smart move by the chinese government to enforce these things to go in a certain direction? ben: there's huge amounts of historical precedent. we broke up standard oil in the united states. even amazon will struggle on a going forward baseness -- basis to hold its lines in one hood. in the west, we do not that an eye[ -- abt an eye when they would get too much monopolistic control over certain regulators this is plaintiff -- blatant regulation and should have happened a long time ago. kathleen: who with the investors be? i need to snap up these ipo's as soon as i can. ben:

heading for that tencent result. successful foray into short videos.ttle bit of softening of the regulatory back drop in china. sustaining that could hinge on a crucial earnings release later today. joining us now is senior editor at credit sites, zerlina zeng. creditsights singapore llc, -- when can we expect a turnaround? zerlina: there will be pressure because of the lingering covid impact. we are looking at the 2023 earnings. revenue is going to turn around because of the normalization of license approval as we just saw two days ago. we think this is going to turn around. in the short form video space, we are going to expect 10 set to see continued monetization. with covid's reopening, we are expecting to see the online and off-line commercial payment activity to pick up which is positive for tencent earnings in 2023. haidi: let's discuss the latest batch approval in china of those gaming developers. our companies like tencent the big players who will benefit more than the strong ones? what does that mean for competition in the market? zerlina: i t

>> i would say tencent, the process of splitting the process into six baby babas has already advancedng of the ceos for each unit is a product of that. this is going to mean the units are going to be more focused on to their strategy, focused into their profitability plans, and also they are going to be more agile and faster in terms of managing and competing. therefore, definitely investors are going to take this opportunity to ask some serious questions to other chinese tech companies like baidu and tencent as to plans about subsidiaries. >> will this be the chance for investors to become more confident about the regulatory system in china given that we have seen in the past investors and markets not really convinced that china is done cracking down on these big tech giants? >> the last two years have definitely been difficult. but we do not think -- we do think that this was proved by the chinese government. and it is not a coincidence, the fact that jack ma appeared in china for the first time, in mainland china for the first time a few days after the restructuring being announced

the news as tencent revenue inched 1% higher after quarters of contractions. that is where the 50% of advertising revenue in 2022. coming up, fintech to the rescue. with startups moving to provide emergency funding to companies following the fallout. will discuss all of that and more, like their new travel opportunities with their new ceo -- with their co-ceo. that is next. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. caroline: wall street leaders and u.s. officials are discussing intervention at first republic bank, discussing the possibility of government banking. this after we learned pac

so is this a model for tencent and others to follow?eing other shares rallying this morning. elsewhere, equities continue to gain. looking at about 4000 on s&p futures, despite the fact that cuts are priced into this bond market. can you really have an environment where the economy is so bad? that is what clients of bank of america are betting on. the biggest inflows into equities since october. meanwhile, the big short has been unwound. in the front end, two-year yields move higher, some selling this morning, back above 4%. according to citi data, we are now back a net long position for hedge funds, the short bet they came into the year with getting punished, and short covering causing the front end rally. dollar gets a bid as the aussie dollar falls after weaker than affected inflation data. nymex crude is at $73.73. markets europe is up next. this is bloomberg. ♪

process has -- prosus has a major holding in tencent, dating 1.4%.e making an offer to buy a pet food division of a brazilian company. francine: the banks. i love the fact that there is a massive twist in zurich with mr. ermotti coming back. ubs gaining 1.7%. the story beyond ubs, there was a single bet on deutschesbank behind the friday rout. and some french banks are facing scrutiny, and a lot of banks in the u.s. will face the biggest overhaul in years after svb and signature. we look at french banks and a zurich with the ubs press conference that is getting set up. that's coming up shortly. ♪ lender power on-the-go. so you can throw in your favorite ingredients and blend up a delicious smoothie anytime, anywhere. blendjet 2 even cleans itself. just add water, a drop of soap, recharge quickly with any usb port. ready to fall in love? order yours now on blendjet.com everything's changing so quickly. before the xfinity ready 10g network,ove? we didn't have internet that let us play all at once. every device? in every room? why are you up here? when

you help boost backup the private sector, the likes of alibaba, tencent and others, who created a lot of jobs in the new economy but was kind of chopped down at the knees over the last three years because of the antimonopoly regulations. some might say within the ranks of power in beijing that these be platform companies got too big, therefore quashed innovation in the platform economy. that being said, xi jinping at the advisory body to the national people's congress held simultaneously, essentially according to state media is quoted as saying that china will support these tech platform companies to create jobs, expand consumption, and compete globally. all the things the likes of alibaba, tencent and others had done for those crackdowns, which have at least anecdotally started to subside a bit. xi jinping has regularly talked about the reckless expansion of capital as being a big risk to the economy. he says china will guide healthy development of all types of capital while effectively preventing and diffusing systemic financial risk. that's a balancing act these leaders in beijing

and a lot of the chinese tech giants like alibaba, tencent and baidu are also playing catch—up. similar commitments. however, this is not not enough. however, this is not enough. as i mentioned, a lot of companies are cleaning up their own data centres, electricity and emissions, but they haven't do much in terms of cleaning up the supply of cleaning up their supply chain, for example. so the data centre may be run by clean energy, but the equipment, the service, the chips inside of computers etc could still be manufactured with dirty energy. ruiqi, i want to ask you this. you know, when we see environmentalists campaigning against climate change, we see the same old messages, you know — stop flying, don't drive a petrol or a diesel car, cut your meat consumption, etc, but what i've never seen from a campaigner is a message about reducing our digital footprint, like send less e—mails or text messages, stream less tv shows or films. i personally haven't seen those sort of messages. i'm wondering, ruiqi, have campaigners missed a trick here? you brought up a really great question.

strength from tencent. here's a look at the ftse 100. currently down 0.5%. off just by 13 points. the benchmark down 0.3%. gilts. yield sticking up by two basis points. 23 basis points lower on yields. coming up, the swiss national bank hikes by 50 basis points. more on that and the credit suisse. this is bloomberg. ♪ tom: welcome back. let's get out to switzerland where the central bank has raised its key policy rate by 50 basis points. it comes switzerland's banking sector faces scrutiny following the credit suisse turmoil. let's bring in the swiss bureau chief in zÜrich. walk us through this rate decision. such a central time for the central bank. >> very central time, very important. the message i get here as there is nothing to see. the central bank raised rates as expect it by 50 basis points. that was expected before the weekend and then in the last couple of days maybe they were saying a be they less or not at all, but it shows there is nothing to see here. if they haven't raised at all, there may have been speculation. then there would have been on

tencent feeling the charge. up another 1% or more here. unsubstantiated reports that there was a premier visit at the headquarters as well. that is fueling the stock here today. certainly one to watch. we are seeing some ev maker's a bit of pressure here this morning. ing's warren patterson joins us coming up. but first, china pushes back against the sale of tiktok. more on this geopolitical battle . this is bloomberg. ♪ >> had they spied on american citizens? >> spying is not the correct way to describe it. i have seen no evidence that the chinese government has access to the data. >> i find that preposterous. >> i see no evidence of this happening. in order to ensure everybody, our commitment is to move the data into the united states to be stored on american soil by an american company. >> the issue is that he did not do a good enough job of distancing the platform from the chinese communist party and there are too many questions about that. >> the tiktok ceo shou chew facing a bipartisan grilling on capitol hill let's u.s. lawmakers se

at the likes of tencent.a look at how all of this is repeating into optimism as we get into the market opens here. annabelle: finally a sense of optimism, a sense of calm returning to the session and asia. we have the open for japan and south korea are upon us. volatility index really an indication, citing back down to eight three week low. a sense of a sigh of relief that is being breezed by some traders in the market today. treasury yields a lot more subdued. we have been looking at moves of more than 20 basis points in either direction over the last couple of weeks. we are getting a sense that the worst of the jitters around the banking sector has passed, also expectation to building that we are nearing the peak for fed rates. that is positive for riskier assets read at the yen baring the print of this. we are sipping down to 133, that currency down 1.35% against the greenback. we did have 90% or just over of the s&p 500 closing in ring territory. one sector in focus is financials, of course. we did see th

going to be more empowered because of the delicate list and people not on it the internet bosses of tencentall of these bosses, not on the list. those who are, there is one that is one to watch. it is mainly stap chip companies. a little bit of an indication there of where things are headed >> eunice, if you were to kind of forecast and speculate is not the right word for it. if were you to anticipate what this means for the business environment in china, there have been those in china who said is very hard to invest in right now. not a lot of clarity with the government view on things. it seems over the last self months, -- several months, they have taken a big tstance against big tech these moves make it seem they will ramp up that regulatory pressure again do you believe the chinese communist party gets it and maybe technology is part of their future and these companies are probably going to be at the tip of their spear >> reporter: i believe they believe technology is the top of the future they believe they are in control of it. that is the indication there have been a lot of mixed sign

>> it comes down to a company-by-company basis alibaba's business is shielded tencent similarly has ay strong china business. but a lot of these companies are investing cloud computing, ai advancements, which require chips. they're designing chips in-house at the moment. >> it takes years to get to the cutting-edge technology that we've seen. >> and importantly china's not manufacturing these chips. these chips are being manufactured by companies such as samsung and others in taiwan. if they don't have access to the company that makes these chips, they're very reliant on technology it could affect it in the way ai and cloud computing could develop in china right now geo politics has been a headwind for the chinese companies for the past two years and the investors have lived with it, dealt with it, gone on with it. as you look at the areas of cloud computicomputing, they'reg at it. this is the future of their business if they're not able to access that technology, that certainly creates a lot of uncertainty going forward for parts of the sector business in china. >> i guess the takeaw

. ♪♪ >>> the numbers crossing from tencent.ly profit has risen 106,000, 260 rmb. 0.40 per share. the company saying at the end of the year combining monthly average users were tall yg up to about 1.3 billion versus 1.26 billion prior to that. so that is showing expansion that they're seeing. you're talking consumer loans and online insurance services to close with financial institutions. so that is an interesting move into money markets and what you're seeing. revenue markets increased by 15%. 27.7 rmb for the fourth quarter. that is also i think what investors have been looking for given the reprising of stock in recent times. the revenues increased 2%. they talk about the commercial payment volume doubled in year-on-year growth rates. you're seeing elements that should have gone up. growth receipts have grown. there's an upside whether it justifies the rally that we're seeing. >> i think it's a rather complicate story because you've got a giant in the chinese technology space that's come through the covid crisis, and it's try

tencent is surging, most in about or months, traders citing unfounded talk that the new trainees are-- chinese premier tour at the headquarters. there was a visit earlier today according to the official chat of local state media outlets, the rally comes after the chinese social media leader came out yesterday with a resumption in revenue growth news. coming up, we will talk all things crypto regulation and more. of course, we are watching shares of coinbase as they get sec notice on that intent to sue the everett offerings. we will digest all of that with sonali basak. this is bloomberg. it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. 92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today. terms apply. when you automate sales tax with avalara,

tencent expects a significant improvement on the $1.6 million adjusted ebit last year. some revocations to mediterranean countries and travel on north atlantic routes will be particularly strong. >> looking forward to a very strong demand for the year 2023 starting at easter, going all the way to the summer not just in general terms, but also focused on the premium classes, first class, business class, premium economy. not just by corporate travelers, but to a much larger degree individual leisure travel. shery: boeing's ceo has missed out on a $7 million bonus. the company's board decided not to give him the incentive due to long delays to launch the 777x wide body jet. release of the jet was postponed to 2025 due to intense regulatory scrutiny. without the bonus, he still earned $22.5 million last year. haidi: it has been an incredibly colorful and wonderful 17 days of celebration and reflection for world pride here in sydney the last couple of weeks and it wrapped up over the weekend with this march, commemorative march over the harbor bridge, and you can see the sta

take tencent, it pioneered the super app model but also has games, advertising, fintech, cloud, media it's one of the most active startup investors, taking stakes even in american companies, like epic games let's take a look at a few others baidu. you can see this being a company ripe from this model pinduoduo, it is pushing abroad and expanding its logistics footprint. >> well, they can say look at what we're doing for the private sector they're unfetterred. they can create thousands of billions of dollars in value through ipos they also reduce the influence and the data, particularly important the data held by one large conglomerate that's what happened to jack ma, right? he was so powerful that he was able to say things about the chinese banking sector that beijing really didn't like and that was the moment where they said, hold on a second, these companies, these ceos, these billionaires are too powerful, we need to knock them down a notch. >> so is there a sense that it is the hand of government of the ccp that is driving this in part >> absolutely from people that i talk to on t

if you are a global company so most customers include chinese, alibaba, tencent.you serve your chinese clients and customers given the band on the a100 chips. how do you serve those chinese clients? >> if you look at the chinese market, it's a big market, and they better have computing accelerating technology. so they will use a reasonable amount of it. there is a ban on the restriction of sale of some type of chips to the china market, and we have chips that comply with the regulations. we are definitely not violating any regulations of the u.s. government. we have products that can serve the china market within restrictions and within the rules that are imposed by the u.s. government. dani: nvidia ceo there -- cto speaking to tom mackenzie. let's get to the first word news with simone foxman. simone? simone: japan's inflation has slowed for the first time in more than a year as government energy subsidies masked a stronger underlying trend aired consumer prices excluding fresh food rose 3.1% in february, dropping more than a percentage point from the previous mo

we will call it scattered showers between two tencent 4/10 of an inch over three days. what i am concerned about is monday and tuesday. wet and gusty. a level 1 a right now as spring begins but there is potential for a stream of moisture to come in early next week to middle of next week. the details are not certain yet but one thing we know is we are going to get more rain. the problems we are seeing right now are going to get exacerbated. percent of normal in terms of rainfall, we are at 117 to 180% of average snowpack in the sierra. 217% of where you should be. impressive numbers. some cities have gotten rainfall for the entire year in just a matter of a few weeks to a month. what a difference. coming up next, the latest in the turmoil involving silicon valley bank and the messages of reassurance about the american banking system. when pain says, “i'm here,” ♪ i say, “so are they.” just one aleve. 12 hours of uninterrupted pain relief. aleve who do you take it for? >> stocks closed higher today recovering some of yesterday's losses. today the dow was up 336 points clo

tries to ramp up domestic semi conductor production as tencent increase in china.

tries to ramp up domestic semi conductor production as tencent increase in china. breaking tonight, we are learning new details about yesterday's horrific attack great authorities have now released images of keane qatar' assault and the police takedown of the 28 -year-old g killed three children and three adults before being fatally shot by police. she was a former student at the school, police say she left a manifesto, but her motive has not been announced. your life tonight in nashville with more on this. good evening. >> while we know that shooter intentionally targeted this glo behind me, we know specific people work not targeted in thi violent attack. today we get an up-close look a the takedown. >> newly released body camera video shows the urgency of the police officers arriving at the covenant school within minutes of the first call. entering the school. making their way to the second floor. and fatally shooting 28 -year-old audrey hale 14 minute after it started. two officers are credited with the takedown. we are learning more about that shooter today. of

. >> i think essentially you will see tencent or some other companies also go under this breakup process absolutely right, these companies are worth a lot more in pieces than they are together. neil: i have always had a tough time of wrestling with the notion of china trying to put its thumb on commerce. these are the guys who make china an international lure, right? if you police them to the degree, i have no idea whether the breakup will do what jack ma hopes it will do, to your point what the government thinks it will do. he is very successful what he did, what he founded, everything else. there are many like him there, but not too many. i would imagine that the government's hands on role is still a bit oppressive? >> well, yes. and you know, jack ma coming back, people saying that is an opening up again. you know china's gone through these periods of regression and liberalization and opening and closing but right now these cycles are becoming shorter and the general trend is towards closing up because we got to remember that while jack ma is running around china, at least a free pers

big tech was baidu, alibaba and tencent, the bat companies so to speak.f that kind of cold war that's been taking place between big tech in china and the government. i think this is a good indication of that because i don't know that alibaba would have proceeded with this plan without at least the tacit endorsement of government interests. >> so i also -- i love that point, scott, about what might be going on here. it does seem odd because we already know the chinese government has an appetite for going after these big tech names but we're also in the middle of kind of an arms race against the u.s. do they ever feel the need to amass more power and kind of direct it more clearly? i'm just curious about that dynamic. >> i think a lot of people have viewed kind of where alibaba's based and the involvement actually potentially of the chinese government as a possible risk. and we've seen that risk come into very clear focus for a lot of different companies in a lot of different ways over the last couple of years. it does seem like, kelly, and i think you make

tencent is an interesting one.become this investment powerhouse all five names, by the way, are investors in tiktok's parent bytedance. a lot of money at stake as the government tries to figure out what to do david, tiger global was the poster child of the tech boom, a crossover fund that did both public and private investing hit extremely hard during the tech rally last year. as you have been talking about all morning and may be enjoying a renaissance this we are, the last week or so, nasdaq and tech have been outperformers. we talked about it earlier this week, this tech trade boosted by lower bond yields and the prospect of a more dovish fed. it's been fascinating listening to your debate, sara, with santoli this morning, too. >> dee, i do wonder on the markdowns, it's been a question for a long time f. we start seeing down rounds of fund-raising, will that bring yet another lower valuation, do you think, or is this already accounting for that possibility? >> that is key if we start to see more down rounds i wan

alibaba, tencent.d and copper producers that can decline on the hawkish testimony. senator, we're seeing declines at close to 5% in australia. this is bloomberg. ♪ the first time your sales reached 100k was also the first time you hit this note... ( screams in joy) save 20% with the lowest transaction fees and keep more of what you make. with a partner that always puts you first. godaddy. tools and support for every small business first. i screwed up. mhm. with a partner that always puts you first. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. >> 9:00 a.m. in beijing

in the past five years we have had the platform economy, like tencent and baidu.ropped off the list starting for the next five years. on the one hand, that would tell you they have fallen out of favor. i will look at it for the other side of the coin. though the names are in more strategic areas of tech, the chairman of they get some conductor makers, of ai makers, as well as the mobile phone maker have moved into economic vehicles. ev's, aia, semi conductors. those of the new strategic konami's of tech. -- strategic moves of tech. haslinda: of course, they are looking to the fdc for guidance to do with conception. what are we expecting? eric: this morning, if you look at the press conference, the governor recommended things are working quite well so far. there could be a similar tone on sunday. the governor will slip continue this tone of supporting housing. this is for living or speculation. they are not going to stimulate another housing boom. they would like to prevent a collapse in the housing market. rishaad: thank you to eric zhu and stephen engle. we are l

tencent and netease also getting approvals for one game each.th korean titles, giving a boost to the notmarble and devsisters. haslinda: we are keeping a watch on pinduoduo. jd.com is currently down 2%. hua-hong semiconductor in opposite direction, up 0.3%. smic is down 0.1%. take a look at where we are in terms of financial stocks. aia is up 2.8 percent, prudential also trading higher. citi says it sees immaterial exposure to credit suisse, and that is lifting sentiment somewhat. anz banking is trading up 1.5%. keep it here with us. this is bloomberg. ♪ these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today.

tencent is up 2%, hong kong exchanges benefiting. rishaad: about eight companies on the way down, all others on the hstech up. yvonne: more on this breaking news in japan. you mentioned the chip curves. new export controls not targeted at china, according to what we are hearing. this is a japan official, they will restrict exports of 23 types of chipmaking gear and the chip curves won't affect favored trading partner taiwan. you are starting to see more about the strategy behind here, we will watch chip stocks closely given they had a stellar quarter as people were adding on this. rishaad: it was so bad before, but we saw intel, and all of these new restrictions being announced by the japanese trade minister. yvonne: look at to our top story. pmi numbers came out, a blowout number. let's get to bloomberg economics take from eric. are you surprised by these numbers? >> it beat market expectation, we see an interesting diversion. any factoring pmi momentum was slow from last month. how does that fit into the big picture? the recovery s

hstech was buck -- back up 10% from lows we have seen, but tencent was a big surprise last week, meituan xiaomi as well. david: this bodes well moving forward because a lot of these companies operate when the rubber beats the road. the touch point is a real economy and not judge the market reaction today because we are coming off of a big week. look at trend and the guidance, and there is commentary from the companies themselves, and analysts that things are improving, and does not improve the funding environment? does this awaken the animal spirits of the private sector? yvonne: a perfect segue to our guest. are talking about micro connect, of platform lodging exchanges in macau, a new asset class made above contracts of small shops in the mainland. joining us now is charles li, the chairman and founder of micro connect and the former chairman of the hong kong exchange. you have a lot of connections in the city. why decide to go for macau? charles: barring new type of assets, this is not banks or insurance, so it is difficult to fit into any particular regulatory model. you do not know

guest: we have been seeing some positive sign in the last few months for example,, tencent having theires approved after a year of no new gaming licenses. but the problem is that no one knows how long this military's afternoon will actually last and whether it will outlast the post covid zero pandemic recovery period. yvonne: especially if things start picking up in a big way. what is a sentiment on the ground? you talk to vcs and investors and entrepreneurs, what are they saying about it? sarah: there is still a lot of uncertainty. whether it's a little bit of cautious optimism after covid zero, three years of strict controls and now people can travel and start to meet people again, there is still concerned that the regulatory risks are still there. so this was highlighted particularly by bao fan's disappearance, very high-profile, someone involved in a lot of major tech deals. so take investors are still in no wait-and-see mode. rishaad: you have all of these concerns out there, and even some entrepreneur to get back into. the mojo, as it were. . sarah: there is optimism in some circl

haidi: we saw some robust numbers out of tencent, certainly things are starting to pick up a bit more on china tech? how do you navigate that, given that we continue to have that broad geopolitical tension between beijing and washington? hao hong: i think the chinese tech sector now mostly will be the internet platform companies that have been really hit hard. i think this year is sort of the first year we are seeing new gaming license approval, also relaxed on many of the policy curbs on the sectors. i think as a result, the companies are recovering from a very low base and because valuation on many of these companies is still being depressed. so, i am relatively more positive on the sector. haidi: always great to chat with you, partner at chief economist at grow investment group. this is bloomberg. ♪ the new chase ink business premier card is made for people like sam who make...? ...everyday products... ...designed smarter. like a smart coffee grinder - that orders fresh beans for you. oh, genius! for more breakthroughs like that... ...i need a breakthrough card... like ours! with 2

most likely the two companies that will come up with meaningful large models will be tencent with weitting on a large amount of data. also tiktok. those two companies are probably the most interesting in the coming two or three years. overall, when it comes to generative ai, from zero to one, china is losing to the u.s.. from one to 100 in terms of application, we probably will see some interesting application coming from china in the coming years. rishaad: you mentioned the different trajectories in terms of development. are they cultural, linguistic? what is it exactly that makes these two on different paths? jen: the most important thing is in terms of the training model. baidu, the foundational training model is just not there really to compare with a very large model used by open ai. i was also thinking of china in terms of the zero to one, the innovation there are couple of barricades. one is the business model. traditional investors in china in terms of tech are so practical. if you come up with some innovation, and if you cannot commercialize it in the next six months, the in

the top tech names, especially those in the private sector, are now off the list, so this includes tencentn changed quite significantly in that we're seeing a lot of state and partially state-owned companies in the chip industry and the a.i. industry represented much more at this event. guys >> you know, eunice, there's nothing you said there that would seem to me to be something that investors would like to hear, and i just wonder, is this already expected so much that it's been incorporated to a certain extent in investors' outlook for many of the companies that we follow closely, or are we going to here in the u.s. wake up to a lot of headlines that send these stocks down >> well, i think there are a lot of mixed signals that are coming out of the chinese leadership. i think people are expecting that the direction is still going to be much more state controlled because of these latest signals it was only a couple days ago that president xi had talked a lot about the importance of foreign investment, that they're rolling out the red carpet for all these international ceos to come to chin