best day since march tencent, pdd china giving the all clear we'll start you have off with tim seymour. what do you think? >> i have been investing in some of these china tech names for decades, and this is a very important moment, because there's been an overhang as related to, and it's been through different platforms of the chinese apparatus, whether it's ppoc. chance to lean on tech companies, some of the biggest in the world coming to terms, coming to a settlement that, by the way, is very manageable for companies, baba and tencent is very important. if this was its own just -- a settlement after four, phi year of very difficult times that would be reason to be excited and be cautious, but the fact that also in the last month and a half we've essentially had the approval essentially of a change in the board at alibaba, we talked about jo tsai coming back we've talked about the board montization of the bubble. investors can start to do realistic sum of the parts a few weeks ago, numbers out of ali cloud alone gave you a 30% sum of the parts before you began to value the other piece

it is a similar story for peers like tencent.n i zoom out to the gmm, and give you bond yields in asia, it is all about their trajectory for interest rates globally. the bank of japan is doing something more specific around repurchase agreements. this is the first time they have done something like this since march 2022. this is ¥3 trillion of government bonds that they will buy with these purchase agreements. it is going to raise the stakes for the bank of japan as we get closer to potential clarity on yield curve control in the weeks and months to come. dani: thank you for the asian markets roundup. let's talk about geopolitics, because u.s. treasury treasury secretary janet yellen wrapped up talks with chinese leaders in beijing. she said she believes relations between the two countries are now on a sure footing. let's get to our asian politics or respondent -- correspondent. i found this interesting because yellen is saying look, we're not decoupling, we're removing some of the ties when it comes to things that are sensitive

we have a policy document earlier, so the tencent executive endorsed this document. could argue that has never been so difficult to be a young entrepreneur in china because of the regulatory crackdowns the last couple of years in the tech sector, the property sector, education. it has wiped out billions in market value. it is a difficult time to be an aspiring entrepreneur and have figures, that is where the confidence will come into play, whether or not we can see industry convincing others to lean in at this moment. it underscores the issue about the economy, policymaking is acknowledging the need to get things back up and running. dani: thank you. let's talk about tech and earnings, netflix shares slumped nearly 8%. following 3q revenue that fell short of expectations, that crackdown on password sharing and the advertising tier are not delivering the results the analysts want. thank you for waking up early and coming into the studio for us. investors seem disappointed by these earnings. is it all about the outlook? >> they were disappointed. overnight shares have

i am looking at tencent all on the downside and it is showing some worries about the weakness in the chinese economy. let's look at the individual movements. meta platforms outperforming in terms of trying to pull out the rest of the tech indices. we have the threats, the new twitter take on from meda that will be launching tomorrow. rivian also getting a bit up 1.4% as they export their trips to europe. a key player when it comes to amazon. we will go to at low as he has a great interview coming up and i am looking at the chip sector because this has all to do with geopolitics and all to do with the words of the key metals, the rare earth that china is learning to the u.s. will have an impact on the likes of intel, on the downside. we are off by 1.6% if you're looking at the overall stock index. focus on ships. --chips. janet yellen is visiting china trying to find areas of common economic ground. just days after china imposed those rejections on exporting key metals that are crucial to technology industries and there are reports from the wall street journal that is really that the

we seen the positive response from -- of tencent.companies like his, but do we know what specifically they're going to do to boost confidence? stephen: they are rolling him out, that was from the statement of the chairman of tencent through state-run cctv, the big rock caster. clearly the chinese government wants to get this message across that they will be supporting the platform economy with more vigorous policies, and also overall, the private sector, which is dominated by consumer goods and services and it's a big pillar of the chinese economy, until the regulatory crackdowns that have lasted for some three years. they've already rectified alibaba, anta and others, and they find them, now they want the confidence to come back. they are essentially putting on the charm offensive. you asked about specifics. what we are getting is, late yesterday a joint statement from the parties central committee, and also the state council -- state council. they put out a statement vowing to treat private companies equally to state owned enterpri

isabel lee is with us to break down why the shares have popped for the likes of alibaba and tencent.a hefty fine buzz -- but is it over? >> it sounds kind of counterintuitive. many analysts are saying maybe this will put a lit on the multiyear crack in the tech sector that caused some of the biggest firms to say china is on investable. there is some speculation that maybe this can pave the way for another renewed -- renewed attempt to have an ipo possibly. many people, even the nasdaq golden giant -- golden dragon index is up 10%. ed: what is moving on look like then? what might be spun off? >> we know china has been really cracking down on tech firms and this may look like the end of it. the alibaba ceo jack came back in march. there is a renewed appetite to reinvigorate the tech sector. that's what many people see but an ipo does not look at like it will happen anytime soon. their quarter was down 56%. if you want to list in the chinese asian market, you should not have had a change in corporate leadership in the last two years. at least the hopes are there and that's probably what

business in china >> we view china as a great opportunity, and we've had a great partnership with tencentong time now. they've got a great both investor and partner they've got a great commercial partner. we're in the process now of finding a new partner for the blizzard content i think we're making sure our players have access to all the blizzard games. >> reporter: we appreciate you joining us in the midst of all this news. mike, i'm going to send it back over to you. julia, thanks so much. >>> coming up, treasury yields tumbling on the back of today's crucial cpi data, but our next guest is still finding opportunities in fixed income. he will explain after this break. for the device... when i go back everything is covered. there's so much you're missing by not having hearing aids. we'll find you a hearing aid that fits your lifestyle and budget at one of our over fifteen hundred locations. call miracle ear at 1-800-miracle and schedule your free, no obligation hearing evaluation today. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you spo

tencent up for sent. 2% as well. foot the words if we can. the inflation story about half an hour back. producer prices -5.4 which takes you all the way back to the cycle of 2014, 2015, 2016. a more, we are back to g of c levels on wholesale prices. consumer prices are the one in yellow. it really in many ways lifts expectations for the upcoming meeting this july in what sense and in what form stimulus might come should the asia session looking like this. we have since given back some of the gains. tepid start to the trading week. msci china, u.s. futures doing this. to year yield remains below levels before that prior to the nfp print on friday. we did touch 5% if not beyond that did dollar yen, 142. compared to friday's level. the other big story is your global macro movers is a mixed picture. hong kong is up 1.6. top left is where we are in new zealand. what is consistent is the sort of paint of red on the fourth column. yields up just across the board. the 30 year in japan. we'll figure out why that is happening. 5.5 to the upside on the

so tencent, actually the ai that's censoring your chats and monitoring your chest knows exactly what you're talking about. even if there's no human behind it, there's a machine and the final bucket is really long after you love me. like there were tons of new laws coming out, just tightening the government's control on what could be said and how much influence they had over tech companies. for example, the internet law would force internet companies to turn over terrorist material or potential national security threats to the government. and they had to do it voluntarily. it wasn't something retrospective where the government could go to them for data. so it was just like bits and bobs they'd done that has just generally made this environment a lot more tense and a lot more controlled. well, i definitely feel that you know, i definitely agree in the last part, particularly on the cultural issue, i, i remember at the time when i was covering that dawn event off of credit card companies and things, we were like, oh, no credits china such a low credit society, this e-commerce thing will

so tencent, actually the ai that's censoring your chats and monitoring your chest knows exactly what you're talking about. even if there's no human behind it, there's a machine and the final bucket is really long after you love me. like there were tons of new laws coming out, just tightening the government's control on what could be said and how much influence they had over tech companies. for example, the internet law would force internet companies to turn over terrorist material or potential national security threats to the government. and they had to do it voluntarily. it wasn't something retrospective where the government could go to them for data. so it was just like bits and bobs they'd done that has just generally made this environment a lot more tense and a lot more controlled. well, i definitely feel that you know, i definitely agree in the last part, particularly on the cultural issue, i, i remember at the time when i was covering that dawn event off of credit card companies and things, we were like, oh, no credits china such a low credit society, this e-commerce thing will

tencent down about 4%. there are some concerns around property and finance and banks.s the evergrande group story. there also announcements coming through and i will leave you with this look at the code -- discretionary index -- consumer discretionary index. announcements that are meant to boost household consumption. haslinda: the outlook for china's economy has been a key aim here at the g20. even as we talk about big issues, there is one issue that is bothering the g20 summit. that has to do with the use of words that have to do with the ukraine war. if you do not have any agreement, you run the risk of not having [indiscernible] since 2008. that is it from bloomberg markets: asia. do keep it here with us. this is bloomberg. ♪ stening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪ i need it cool at night. you trying to ice me out of the bed? to guide you through a changing world. baby, only on game nights. you know you are retired right? am i? ya! save $1200 on our most popular sleep number 360 smart bed. plus save up to an add

from the platforms, alphabet, meta, amazon, ali baba, tencent, tiktok, plus apple and microsoft, salesforceng the picks and shovels if you like, the chips that are used for all the computing power, and i think only the larger companies will be able to do it at this sort of scale and this cost and i think inevitably, as they are forced to grow organically because of regulation, i think you will see them expand into it. i would say the six platforms would be western, eastern, press apple and microsoft will be the interesting ones. just briefly, five months were a year's time from now, what is the impact of al on advertising and marketing? i wish i knew. it is different, five minutes to five days, even five years was having said that, i think it will be a much more efficient, much more effective marketing model both bit will be algorithmically driven, the human creative side will be increasingly important but in a different level. it will be those decisions and those views and those judgments will be made with much more effective data than we have ever had before and i think it will be a much

it signaling that the end of the crackdown on alibaba and tencent was coming to an end. bloomberg learning a chinese state pension fund suggest its asset managers sell bonds following a review including those from riskier, local government financing vehicles and private developers. let's bring in bloomberg shanghai bureau chief. what is going on? it seems to me the l g-v's are already under pressure and now they may get more pressure put on them. >> what we are hearing is china state pension fund have asked the fund managers handling their money to have a close look at the sector in shafting them to sell bonds and also by private developers. the reason for that is, the concerns about the sector, the entire local financing -- local government financing vehicle has increased because of the economy and also expectations of deterioration in local governments financing situation. during the covid outbreak, spending on that has increased sharply. in this severe downturn in the property markets has cut into the revenue, a key source of the revenue, which is the sale of land. or

official start of a first-round -- fresh round of inspections on chinese-listed company's including tencent. should this be a sign of comfort for u.s. investors? derek: i love the way you phrase that. things that look bad on the surface can sometimes be a return to normalcy, in the words of warren g. harding 100 years ago. that is what people are hoping for here. the u.s. and china have a lot of intractable disagreements. a lot of u.s. concerns about how china is operating in the world in their neighborhood. china views u.s. as trying to encumber its rise in some ways. they have butted heads. it is a fragile relationship. it seemed like it was on the mend after the bali g20 meeting, and then a balloon floats over the united states and it all goes to heck in a hand basket. here we are trying to get this back. some of these moves you have mentioned are along this line toward normalcy. that's one of the things i'm looking for out of janet yellen's meetings with senior chinese officials today and this week. is signs that the u.s. and china -- they are not going to patch up everything -- but hav

not a lot of movement in tencent or baidu arjun joins us at the desk i remember when the a.n.t.isting was pulled it was dramatic and caught a lot by surprise. this is a significant step will they finally get to list? >> we just landed at shanghai that time. i dropped my bags at 9:00 p.m. and the ipo was pulled my phone was blowing up. i was trying to find out what was going on this was set to be the biggest ipo in the world it was going to be landmark listing for shanghai market alongside hong kong. it got pulled. it was dramatic. it was effectively a two-year long campaign by the chinese government to tighten the domestic tech sector and scrutiny on the giants and power they wielded in chinese society and in the case of a.n.t. group, the chinese government was concerned a tech firm, a non banking firm was offering non-bank services. what we have seen is the pboc this is what we are not happy with you need to fix this they have been working together to come up with a solution the goal is for a.n.t. to be a financial holding company to put them under the purview and direct regula

you can kind of see, if you bring up charts of alibaba or pinduoduo or tencent, the year-to-date chartsave been talking about consistently, and that is fits and starts of confidence in these platform companies. not that upwards that some would have expected. because, again, we get signals that these crackdowns are ending. then the stock goes up. then we get something else that drags it down. right now stocks are going up because it seems like everyone is in unison at beijing, talking up the need for the platform economy and the jobs that they potentially could create. keep in mind, youth unemployment is at a record high in china right now. the economy cannot seem to get much momentum right now. so li qiang met with the top executives, just yesterday, i believe it was, including alibaba, including bytedance, the parent of tiktok and douyin. jd.com, food-delivery companies, pinduoduo, they gave written input in that meeting. essentially, li is urging local governments to provide support to the internet firms, calling them "trailblazers of the era." so now they are talking up the platform

bazooka type of stimulus, so, they took away the impetus and the incentive for the alibabas and tencents all of these companies. it kind of made them think and monopolistic, according to beijing. now that the rectification's have already been done, the fines have been levied and the companies have been sort of chopped down in size, now please start innovating again, start hiring again. we will see. haslinda: stephen, i mean, it seems like that is a new strategy. companies investing again to boost growth instead of really relying on big stimulus. i hate to be skeptical, but we have heard this before. stephen: right. well, we need to be skeptical until it's proven wrong, that the policy is going to be conducive for people to invest. if you look at the last 2.5 years at alibaba, they spent most of their efforts kind of breaking up into six core divisions and trying to find ways to unlock value for shareholders. global investors retreated. we lost about a trillion dollars in market value in the internet sector in china over the last nearly three years. investors have been burned. the compani

the tencent equipment were in place from the previous day.e heat did not stop people from coming out and enjoying music and beer in the park. reporter: jennifer is one of the coordinators of the event and says most of the festival will be held in the shade. festival installed a large tent to provide as much shade as possible, but they -- they put smaller tents up. >> we shifted it around so people could enjoy the shady spots under the trees. our community partner is sponsoring this, we keep people cool. reporter: the state unveiled a new website called heat ready ca, a place people could go to learn about safety tips as the state sees more -- each year. >> the potential of causing more heat related illness and deaths. >> it leaves people like sims hoping for cooler weather soon. >> it is what we got, so. i am trying to enjoy it. gloria: we first told y this story on our mobile app to get alerts like this one sent straight to your phone, you can download the abc7news app. you can find cooling center locations on the app, as well as the best ic

a sign they might be promoting certain companies, tencent, they have looked at the ministry of finance to actually promote these companies abroad in terms of foreign investment. >> which would be a change in general, the tone has obviously been for the last three years, really, quite a negative one when it comes to big tech, which we talked about. the question has also been the response of those who run the company in terms of their willingness to invest, how they're using it, allocating capital, investing for growth. >> right but recently with alibaba, and financial, the reversal we saw in that, that was seen as a big, big sign it could be, at least for now, green light to invest in china the biggest fear in terms of government's intervention is gone. >> right has receded a bit. again, with all things china, it's not completely clear. >> right >>> let's get a news update. for that we'll go to contessa brewer. >>> houston police closed the investigation into the deadly 2021 astro world festival. the more than 1200-page report details what unfolded during the travis scott performance th

consumer is looking for a version of a tencent product.ffirm ceo, max levchin, and sonali basak. pg&e says it is more prepared than ever for the threat of wildfires. the company spent five years modernizing its infrastructure in america's most popular state. it is now turning to ai to predict, control wildfire impact. take a listen to my exclusive interview with the pg&e ceo. >> i think you would be quite impressed if you could see the wildfire science that underpins the activation of the technology, the hardware is activated by the software. we have the data system. we divided up our entire service area, two thirds of california a two kilometer polygons -- into two kilometer polygons and we have readings because of weather stations, our cameras using artificial intelligence, to know the difference between fog and smoke that are identifying the fuel moisture levels, humidity, wind speed, temperatures, grass levels, open maintenance tags in the two kilometer block, any tree in strike distance and aligned in that block and we have technology

the whole thing but from our perspective we do not have direct exposure in china so we do not own tencentalibaba, baidu any of those names. we have indirect exposure through multinational companies -- national companies. starbucks is a good example. for these multinational companies china is a huge market. nike is another example and you cannot ignore it so for now we are comfortable in terms of reopening and that will have a positive impact on earnings of multinationals. we will continue to assess the situation. kathleen: u.s. earnings are coming up friday with big banks. what is your outlook? mary: so earnings, that's what we do is we looked at earnings and invests in stocks in an upgrade cycle so for about 18 months though global stocks were in irving -- earnings downgrade and then you saw a trough. it will be interesting this quarter to see whether the trough was a fake or you are going to see continued upswing. we are looking closely at the magnificent seven or the seven mega cap stocks that have driven the rally in the second quarter because some of them have strong fundamentals and

thought what was interesting in the recent months was how the company is tying up and working more on tencent'stform to reach out to the users on that platform itself. notwithstanding, we have seen how international payments are now permitted on alipay and wechat pay. there's still room for them to get more users as well as increase the spending of users that will be a key into 2024. >> what to look out for ali baba. we're also watching commodity markets, the energy. take a look at what we are seeing with wti and brent after the saudi arabia and russia curbing of supplies. we are starting to see a modest rise across wti, trading just shy of $25 a barrel. clawing back some of that 1% plus loss we saw and the previous session even as those cuts were announced. saudi arabia saying it will prolong the supply cut for one month through august that was largely expected by oil traders and we heard from russia announcing a fresh production. algeria announcing plans to make more modest curbs. let's bring in andrew jane. we heard these announcements from saudi arabia, russia and algeria but what is intere

tencent, billy billy and focus microsoft moving closer to finalizing it 69 billion dollar bill for activisionknow there could be an appeals process being filed by the ftc. >> let's take a look at currencies ahead of the rbnz decision coming up, over an hour from now. they are pointing out that the kiwi is vulnerable to any dovish signal from the rbnz. not so much from a hawkish move but that is what people are watching, you have been telling us all evening about this dollar yen move. pretty interesting, the end it breaking below 140 dollar getting weaker yen getting stronger. we had data out i don't know what else will move it but currencies and focus. that is it from daybreak asia are market coverage continues, this is bloomberg. ♪ no upfront cost. sometimes you need a second opinion. irst step to see if your small business qualifies. 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) stait's an amazing thingom when you show generosity of