and tencent's results were disappoint.venue growth came in slower than expected, they are having a few soft issues in the business, it was not a disaster but it was slower than expected. they are seeing growth in online advertising in particular. they are also having a strong result in their cloud business, but their games business is soft, and it's not clear exactly whether chinese consumers are going to shop to be able to help drive the economy and pull it out of this trouble. that it is in right now -- this troubled point that it is in right now. they talked up their online advertising in particular, they have a strong video business which has been doing quite well and they said that there was some technology they applied there to be able to take advantage of the opportunities in revenue growth and online advertising which group and helped that 11% growth. they are softer in games. games has been a big driver of growth for tencent in the past but they said they did not try to push the commercialization of their games th

tencent is the biggest games company in china.istorically has been an area of strength. they've introduced some new titles into the market, but they haven't been able to commercially capitalize on those titles. they haven't been able to make money from them the way they have in the past, it may be due to the tensions they have with beijing. beijing has been concerned about how much people play games with them china, killing miners. there have been new regulations. it sounds like tencent has backed out on that games business. yvonne: some would say that's transitory. i think everyone is looking for new revenue streams and that is certainly ai. what did we learn about tencent's ai strategy? peter: that's a good question, after the frenzy that we sought earlier this year from openai and chatgpt, you had a couple of the chinese tech companies jump in very quickly and very aggressively. baidu, the search giant came out with products that they think it's very promising for the market. since time also came out with a pretty interesting p

so i expect these products to be brought on to tencent's fintech platform and start selling to tencent'sbillion users, which and i think the potential of that can translate to significant revenue growth opportunities for the company. thank you very much. some in-depth and even optimistic views on tencent from ivan xu. he's senior equity analyst at morningstar. of course, tencent is just one of the earnings stories we're watching today with jd.com and hkex. also due to post results. let's bring in our asia stocks managing editor ling tong to so what are we expecting from later? yeah, i think we're expecting a relatively positive earnings report card from jd, which is china's second largest e-commerce platform after alibaba. and we know alibaba reported a 14% jump in sales growth and people are expecting about 4.3% for jd.com. so that's actually not a lot compared with alibaba or compare with its own past two, which we saw double digit growth before the pandemic. overall, i think analysts attributed a good sort of june 18th consumer festival hosted by jd as a good contributor to its earnin

we give an eye on tencent, they reported revenue that missed estimates.ll of this as we see more chinese tech firms coming out and we want to see who is winning and losing. we want to get to these people in new york. henry, i go to you first because the details and nuances within tencent, where was it outperforming and where was it lackluster? >> two elements are in play, one is advertising and tencent has been -- seen gains in advertising because it is pushing through its tiktok like stream. the disappointing part is in gaming. when you talk about gaming, it is about domestic games. most gaming revenues at home and abroad are lower than analyst commit so tencent was saying this is a temporary phenomenon and this revenue should rebound in the third quarter. they are less pushy about in game commercialization for gamers and players during the quarter to take the game longevity. it remains to be seen for the third quarter. ed: the company level, jd was a different story, sales beat estimates. you look at the adrs, the u.s. listed shales are -- of both, they

tencent�*s core gaming business experienced weaker than expected growth.enue was little changed, a sign that the economic slowdown in china has hurt the tech giant's recovery from a record slump last year. well, let's turn to us government bonds, which are typically considered a safe haven investment. well, demand for those bonds, commonly known as us treasuries has held up, despite a downgrade by fitch ratings agency at the start of the month. and a report by moody's investors service calling china and japan have typically been some of the biggest foreign buyers of us treasuries, and that has helped to fund the massive us debt pile. earlier i spoke to fixed income expert stephen major, who told me the downgrade has had little impact on the global economy. so far there's not been that much of an impact. and you're right, there's still plenty of demand for us treasuries. i guess it might be a bit of a nudge for all of the authorities involved in the us to get the house in order over the longer term. but right now there's no meaningful movement in the yields

tencent was really soaring.ut, to that point, hedge funds across the world reportedly dumped chinese stocks this month. as a concern over beijing's troubled property sector and weak economic data take a toll on sentiment. according to goldman sachs, a shares led the selloff, accounting for 60% of shares. and investors including tiger global and d1 capital have pared down exposure to chinese companies in the second quarter. d1 and entire capital dumped their position while ali baba reduced their position in tiger.com by 20%. >>> this morning we are watching this story closely. u.s. shares of tower semiconductor sharply lower after intel announced it is terminating its planned acquisition of the israeli chipmaker. intel will pay a termination fee of $353 million to end the deal and said the decision was due to not being able to secure regulatory approvals. this is an interesting story as well. intel has kind of been behind a bit on the chip race as of late. this was their attempt to get involved again, but the dea

again, tencent seen as a bit of a laggard in the ai space. but again, any kind of update on that would be key. but even though most analysts are not expecting any, you know, any significant revenue contributions from ai, at least for the next 12 months. but again, that softness in the economy is going to kind of weigh down any, you know, exuberance that we might have seen in the first half as revenue recovered. barclays, jp morgan are the latest big banks to ratchet down their growth expectations this year and even next for the chinese economy. steve, we're also going to hear about jd.com. what are we expecting there? yeah, interesting. jd jd.com are obviously going to be impacted by the the slowing momentum in the chinese economy. no doubt. but they're likely to see some pockets of strength similar to what we saw with alibaba. some big ticket items being pushed out. the virtual doors, if you will, for jp or for jd.com demand for physical goods. according to bloomberg intelligence, recovering last quarter and should support high single digit

secondly, intense competition in china between its rivals like tencent, jd as well.to address that, the focus for alibaba has been on offering incentives to shoppers and merchants alike to try to get them to list their products on the platform within the group. analysts and our bloomberg intelligence team is one of those that have really been highlighting the impact it could have on profitability in particular because alibaba has been focused on things like cost cutting, creating operational efficiencies, unlocking value, as we been discussing him that huge group reorganization, so the risk is that that could end up being out shunned or end up outshining its lifted sales in china. haidi: what are the other challenges? annabelle: the intense competition between alibaba, tencent inside china because particularly as you had that crack down the light of those tech giants, you had those ones pulling back, starting to cut jobs and reprioritize and refocus, but that left a void and others inside china came into fill the gap, so we are in a situation where the question is, w

so the preview is for tencent and jd both hit the bloomberg terminal this morning. tencent expected to record fastest pace of revenue growth in over a year, fueling hopes that the biggest internet arena in china is rebounding. jd similar story. physical goods rebounded last month. jd is going to be fine. the news overnight and the data doesn't tell us that and it's a completely contradictory picture. and i think that's why we want to think about the macro affecting the micro. let's bring in amy celico albright, stonebridge group principal. and we've really sort of discussed it out there a bit, amy, of how oddly and i'm hearing it from the likes of jp morgan, their view is really we could see big tech outperform the rest of industrials, particularly the banks real estate over in china, because actually the regulatory hurdles are pulling back while macro headwinds are affecting the other sectors. does that ring true to you? well, what's ringing true so far is that just how negative the numbers are coming out of beijing? so we're due for some some good news, hopefully

it was a different story over at tencent. 11 percent to just over 20—billion dollars. tencent�*s core gaming business experienced weaker—than—expected growth. domestic gaming revenue in particular was little changed. a sign that the economic slowdown in china has hurt the tech giant's recovery from a record slump last year. around the world and across the uk, this is bbc news. if any one was ever born to conduct a tram, it was rebecca brightman. in the age of five years old, she visited the tram village in derbyshire with her mum sarah, a volunteer driver stop every fortnight i would come up and she would come up with me. ,, ., , ., with me. she would 'ust hang around with me. she would 'ust hang aound and h with me. she would 'ust hang around and ride _ with me. she would 'ust hang around and ride on _ with me. she would just hang around and ride on the - with me. she would just hang | around and ride on the trams. so perhaps not surprisingly at 16, rebecca is now following her mother's footsteps celebrating vintage trams. h

and tencent, which is the company behind wechat, it lost 3%. a real headache for tech companies, if you think about the amount of money and time and effort it's going to cost to implement it, as well as the risks of noncompliance. and those risks, of course, are both regulatory as well as financial. and some are saying perhaps that we mayjust see youth banned or young people banned altogether from these platforms. it's also certainly not the first time that we've seen a crackdown from beijing on the young people's use of technology and screen time in recent years. for example, back in 2021, we saw them implement a curfew on young people using video games and some platforms such as douyin, which is owned by bytedance, the company behind tiktok, has already got teenage modes, and they allow, for example, just a0 minutes of usage by young people every day. beijing, for its part, though, has said that the tech crackdown is over and that it's going to be now supporting the development of tech companies in the country. this is pauline. she teaches di

it was a different story over at tencent, where earnings results came in below estimates.llion. but its core gaming business suffered wea ker—than—expected growth. domestic gaming revenue in particular saw little change, a sign that the economic slowdown in china has hurt the tech giant's recovery following a record slump last year. it's been a difficult week across the board in china — we saw house prices fall, disappointing retail sales, and a decision by the government to stop publishing its regular update on youth unemployment — which hit a record high injune. the chinese premier li chung has said that his country would "work to achieve its economic targets" after calls for more government stimulus. in singapore, cash, cars, properties and watches were among the luxury items seized by anti—money laundering police in a series of raids on tuesday. ten people, all of whom hold foreign passports, were arrested. more than $700 million us dollars of assets have been seized in what's being described as one of the biggest cases of its kind singapore has seen. 0ur asia business

tencent and nio also higher today as you can sea see. in fact, tencent up 6%.ke a look at these, they are down 17, almost 18% after the company said it expects a much weaker outlook than analysts predicted. the semiconductor company expecting first quarter sales between 220-240 million, slightly lower than the 235.5 million estimate and also expecting to lose between 60-75 cents per share, much more than the 20 cents estimates. stock down more than 17.5%. and then there's this story, cvs stock is taking a hit today after blue shield of california said it plans to stop using most cvs health pharmacy benefit the management services and instead work with others including amazon and mark cuban's drug firm in a bid to reduce drug costs for its insurance plan members. not doing much for the stock, shares of amazon just down close to 1%. well, while people head to amazon for discounted prescriptions, they're also hoping to get some discounted school supplies. why not? retail giant walmart attributing revenue gains in the quarter ending in july partially because of ear

tencent and jd.com are on deck today.t's bring in our chief north asia correspondent, stephen engle. he's here with a preview for us. and what's expected, this is a very big company, so i don't know where to look sometimes. yeah, i mean, it's tough to get excited about these tech stocks because, look, alibaba, when they had their earnings, they posted better than expected revenue growth across their major divisions. but the stock really hasn't been going much higher. and you're seeing today the market is not really anticipating a blowout. numbers from either tencent or jd.com, which they're both reporting later today. so tencent is down another 1%, but still, we're expecting the analysts expecting consensus gain in revenue in the june quarter of. 13.4% would be better than the 11.4% or 11 point roughly 11% rise in the calendar. first quarter. so again, they're benefiting from, you know, the lack of a regulatory overhang and the confidence in the, you know, that crackdown on the platform economy is over. so it's been lifti

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 second quarter sales missed the gaming and cloud business and beijing escalating the battle to the yen with the highest fixed by since october. the yen tumbling to the weakest this year. david: the wave of risk aversion is spreading and not like it has not done so every date so far this week. we have seen mostly declines across the equity market the more pronounced today. we are down 1.3%. not a lot of attention. there has been a pickup in several inflation print's coming in above expectations this week

tencent, getting a goldman cut on david: we are heading to the lunch break. turner -- water. growth in japanese worker wages. this is something which may support the boj assessment of price gains. yen fallen victim to the strength of the dollar. the yield is that .63. we are looking forward to soft. yvonne: they are reporting later on and certainly one to watch. will they be able to swing the bat profitability after we stop orders of losses? ai and investor interest helping it recover. one to watch a given what we are seeing here. analysts expecting 7105 with 80 yen below that. maybe some upside. david: just a little bit of upside. let's stay in japan. japanese online lender brekke towne bank says rakuten told us how they are set to benefit fear --. >> i think the biggest opportunity is japan is steadily becoming a cashless society. while the adoption rate is so low, it means significant further growth as possible. i believe refining service will lead to greater revenues. the challenge is concern for security. during the pandemic many people got comfortable s

tencent adrs are slumping in u.s. trade.leighs -- sales rose, games or cloud services underperformed. the company giving investors reason for optimism, develop an i i model -- ai model. jd.com shares fell after general merchandise revenue saw a 9% decline in the second quarter. profitability missed estimates. goldman sachs also expressing concern about third-quarter growth. kathleen: you can get a roundup of the stories you need to get your day going by going to dayb . you can customize your settings. this is bloomberg. ♪ kathleen: argentina's leading presidential candidate is plugged into close the central bank while making efforts to avoid a debt default. in an interview, he told us he will make the u.s. dollar the official currency of argentina. >> i think there is a previous discussion of dollarization, to get rid of the central bank. the dollarization is a instrumental issue. one argument has to do with the moral issue which is best dealing is wrong. -- that stealing is wrong. if we consider it is wrong, one of the

alibaba and tencent were strong, but jd is when we saw a mess.r on the narrative in the text sector, or if this is a comeback order for these companies. we finally got confirmation of when banks will start reporting. the next few days or so, we will get the likes of china life, china citic bank and throughout the week, bank, icbc and the big four. rish: policy earnings, we got them -- aussie earnings as well, we got the likes of bhp, santos, and qantas out on thursday. busy for corporate australia. less busy, woodside, a strike on their hands. workers will be walking off the job next month if they cannot reach an agreement by wednesday. david leads our asia energy coverage, we're talking about australia, the second-biggest lng exporter in the world. this could really impact that because it makes about 60% of the gas australia produces. >> australia is an incredibly significant exporter of lng. it vies with the u.s. and qatar as the biggest supplier of seaborne production. any reduction would be significant. were not quite there yet in terms of in

if you invest in tencent or alibaba, what's to say the u.s. decides to ban those investments.could be tied up in the court system for years, like a lot of trump executive orders were. there is no reason to believe you won't expand the remit of this to other sectors like biotechnology. the pharmaceutical industry is very worried about restrictions on their ability to invest in china. in five years, or even sooner, what's to stop that happening with the new administration or even the current administration? dani: thank you for joining us. it's clear the story isn't going anywhere. james mayger on u.s.-china chip and investment restrictions. coming up, siemens earnings missed in the last quarter, we hear from the ceo of the german industrial giant on the outlook. this is bloomberg. ♪ hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, an

you think about where we are with tech giants reported, we've had tencent and alibaba with good numberss well. when you put it into context, the june reporting period, we started to see those economic indicators and china start to worsen. a lot of downgrades to gdp targets and overall weakness. this is quite good in context. if you can see that circlein red, that is the end of january. this is the point when baidu posted or announced or released its version of chatgpt, ernie bot, since that point, you can see baidu's been outperforming -- the line and white -- outperforming its peers. in yellow and blue. that's being attributed to ai. baidu were the first to put out the answer to chatgpt. that also came up in the earnings call. the founder says the company's still awaiting full approval from beijing to roll out the app to the public. they didn't give answers to the specific timing of that. that's something else we are watching. paul: let's talk about the offshore yuan as well. 730 at the moment. where are we heading next? wall street sees plenty more downside. >> plenty more downside is

. >> ubs tencent downsize credit suisse's investment banking business and align it with our conservativeculture. >> despite disappointment, months later silence has fallen over the alps. is the swiss serenity a sign of stability or complacency? women only got the right to vote in 1971. with a closed door government brokered deal backstopped by taxpayers, many hoped the rescue by ubs would be a catalyst for change. perhaps federal elections can offer an opportunity for debate many feel that moment may have passed. another concern, switzerland is a small country but it's baking sector underwrites risk across the world. ubs total assets stand at 198% of swiss gdp. on the surface all is calm, unemployment unmoved, inflation the envy of every central bank, and the money still flows. if crisis does arise, do switzerland have the firepower to meet it? lizzy: coming up, feel been airlines partners with the nigerian government to launch a state carrier. we hear from the ceo of africa's biggest airline, next. this is bloomberg. ♪ >> we are establishing the nigerian air in partnership with the nige

tencent is a bit of a disappointment. in linear ways, the traders are looking at chinese internet firms as the proxy for the broader economy which is not doing that great because consumers are downbeat. clients might put off spending in marketing and cloud computing the macro situation continues to be dicey. they our on future growth for generative ai so we will likely see a lot of spending on that front, but in the short term, it might dent their margin. rishaad: thank you very much, zheping huang, there. the tech index is up about 0.6% right now. august gaynor -- biggest gaynor percentagewise, byd. this is bloomberg. ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. rishaad: just joining us at the moment, it is 9:49 it am in bangkok where aixa's essence of history perhaps is being made with the former prime minister stepping onto the sorry for the first time since two thousand eight.

>> yes, of course, tencent is a big focus this week.aba signaling a comeback, and for tencent we may see a 20% jump in advertisement businesses. for other businesses we may see a 10% jump, so the chinese tech sector, the sentiment is improving, and now we have heard that china is ramping up their crackdown and they are supporting private enterprise in order to support the company -- the economy. paul: so we have a company reporting today. what are we watching their? >> we just mentioned the chinese tech sector, but it may not be the same for the semiconductor industry. just like samsung reported the worst decline since 2009 and tsmc saying the downturn after the pandemic may be longer than expected, so from hon hai we may see 20% in this quarter. we may see some support from ai businesses in the second half of the year. so overall, any focus or updates about the shifting from china in order to expand in india is something we are watching. shery: we continued to talk about the pressure on the chinese property sector. are we expecting any

finally another interesting takeaway was the nonbank players getting into finance in china you've got tencent and another group and also u.s. tech giants like amazon, apple, an google also trying to get into the financial services >> ryan, how is the downturn in the uk economy perhaps impacting the sector you point to 16 being the number of big fintech players, which is second, which is still sizeable. but when compared to players like the u.s. where you have them in there, the impact must be big. >> we don't have the big impacts like paypal who have a global influence. but you have got some companies that are interesting i think talking about the uk specifically, yeah, high interest rates has and the uk hasn't been immune to that. it impacts the banks significantly. there's a lot going on there the uk is trying to push the bank itself. the government is doing initiatives around listings for examples to get companies from the early stages to the growth stages, but definitely, definitely some confidence >> one of the interesting bases to my mind, the pioneers, are going to be the incumbent ban

one stock that is flat at this point -- one stock that is notably weaker on the session is tencent, asdent in the latest quarterly results can also softness in the technology sector in china. matt: let's bring it back here to north america. tech stocks have struggled recently. the nasdaq 100 in new york rallied a whopping 44% through july. has had a steeper drop this month that than the s&p and the dow. our next guest is one of canada's best known tech investors. leading early investments & co.'s like shop -- in companies like shopify. john ruffolo is the head of maverix private equity. angst very much for your time. i have got to ask about grades. we saw mortgage rates go up 7% officially. larry summers is going to be on david westin's program "wall street week." he says he think the 10-year will average 4.75 over the next decade. how are rates like this affecting your business? john: i actually think the rates are actually coming back to the long-term mean, and it is making technology businesses ultimately more sustainable. so much over the last decade they were fueled by excessively

investors weighing tencent's disappointing revenues but all of the dower macro moves out of china as have the offshore yuan currently pretty flat against the greenback. the gloom injecting asian markets more broadly as well, the edit is ci -- msci asia-pacific down at levels we haven't seen since march, on track for its biggest two-day drop since october. if we have a quick think about u.k. data, we had inflation data yesterday, jobs data on tuesday. the reaction has been divided but the good news is wage growth finally outstripping inflation, even if it means the bank of england may need to keep on hiking. i'm sure they will be talking about all that and more next on "markets: today." this is bloomberg. ♪ so, you've got the power of xfinity at home. now take it outside with xfinity mobile. like speed? it's the fastest mobile service around. with the best price for two lines of unlimited. only $30 bucks a line per month. that's hundreds in savings a year when you wave bye to the other guys. all on the most reliable 5g network nationwide. you really shouldn't walk out the front door w

same for tencent holdings.missed us, check us out on spotify or heotr podcast apps w.e.x. back right after this (vo) verizon small business days are coming. from august 7th to the 13th. now is the time to partner with our experts. get started today with verizon business. it's your business. it's your verizon. ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley. exchange." ice time for your w.e.x. wrap-up. we're beginning with the top story. fitch downgrading the rating from aaa, citing what it calls expected fiscal deterioration due to feuds, credit tightening conditions, and a slightly slowdown in consumption. >>> former president donald trump has been indicted over the 2020 election with three counts of him de-fraus the u.s., obstructing the elec

markets actions put on a number of companies i can tell you the three, that we should and that is tencentbably second after huawei in terms of perpetuating surveillance state. maria: that is right exactly right, in terms of huawei, that is one of the ccp's important tools, in terms of survillaining foreigners including americans keith i am glad you mentioned mou because it was joe biden as vice president, who signed that memorandum of understanding back in 2013 or 2014. where he allowed his signed that mou left out thousands chinese companies to trade on u.s. exchanges without following auditing rules we have public companies to follow standards by the securities and exchange commission but not chinese companies? they don't have to follow them. >> it doesn't make sense what that means they are allowed, tap into u.s. capitol markets the most efficient market a low cost of capital so they get a competitive edge. but then, okay, you can't audit them what do they do they don't worry about 90 day shot clock like ceos do you crawl under defb in field position if you miss earnings these guys sto

>> investors want the alibabas and tencents they don't want petro china or some chinese bank.n the opportunity set in china in terms of the urban middle class. what you're seeing, though, is domestic consumption being very it tepid due to real estate concerns, the scar tissue from zero covid, and that's incrementally going to improve over time. we like to seat policymakers step on that gas pedal you're seeing consumption vouchers being given in select chinese cities this is their version of free checks, the proverbial helicopter money you see an expansion of that, it raises domestic confidence, gets domestic consumption going and that's what investors want to see in terms of opening some of the k-web names, alibabas and tencent. >> i'm wondering whether or not you think the economic stress they're under makes them more open to cooperation and receptive to messages like raimondo's, or more defiant and belligerent, especially with taiwan elections coming up >> that could cut either way they can either become more defensive or react increasingly. the signs are promising that we'v

the hang seng tech index which is where most of the big china names are with alibaba and tencent, theyre in the index. that started to rally pretty well off the back of nvidia and there was a good run. it has since given up some of those gains but still holding well above the levels that we saw back in may. certainly, nvidia has spurred a letter of interest in tech anthony's in the greater china area and also korea and taiwan. it is a big deal for people watching the tech space in asia. they will be glued to their screen tonight to see how nvidia trades because a good performance there will probably ensure that we get a decent move again the following dates and asian markets. lizzy: when it comes to jackson hole, the key questions are how high the fed takes rates and then how high -- how long they will stay there. do you reckon that jay powell going to sound more like alan greenspan or paul volcker in his speech on friday? mark: i think bloomberg economics has his right and is more greenspan. greenspan was known as someone who achieved while fed chairman, the fed achieves a soft landin

consumer confidence out of the numbers we saw the likes of alibaba and some of the numbers out of tencentading into q3. >> and what do you make of the current moves both in terms of talking about stimulus and also even overnight, when, you know, they tried to defend the currency a bit after a stretch of weakness there? are these good signs are we back to the playbook of listen, buy when china wants to stimulate? or is it more complicated now? >> the chinese government thought that they could inorganically find their way out of this recessionary environment. if they reopened the market and teased stimulus, teased inteinterest rate drops and infrastructure investment injection that would stimulate global investment appetite to rush backinto the world's second largest market and that didn't happen as we anticipated, they're going to have to get more active in terms of how they inject capital into the ecosystem, reduce interest rates and buoy investor and consumer confidence they can continue to operate as they had precovid in this market. >> i feel like i have to ask, you know, i wouldn't ha

it's been interesting is we've had a slew of tech earnings over the past couple of weeks, alibaba, tencent latest yesterday after the bell, they've told us consumers are starting to spend more. that's been one of the key takeaways. we actually saw made swan jumping more than 7% yesterday ahead of the numbers being released which came out after the bell. just to recap the numbers, we saw the fastest growth for the company since 2021, which is something that has been at goat across the other big tech earnings. sales up 33% in the june quarter to $9.3 billion. that was better than what had been expected. the company also swinging back to operating profit. the company saying chinese consumers are starting to spend more on meals, on travels and we have seen stronger services demand over the course of the seven months in china. where the company sees this going, they did slagged in the earnings call that they do start to see them pulling back into the end of the year. yes, there are those headwinds that you were saying that we continue to see in the macroeconomic indicators. you can add to that

. >>> and tencent posting earnings this morning, a surge in profit for q2 but misses expectations among gaming business, cloud and fintech units. shares down more than 1% >>> here's what to watch today july housing starts and building permits at 8:30 a.m. eastern time, followed by industrial production at 9:15 a.m. and at 2:00, look for minutes from last month's fed's meeting. we get results from target and tjx, the parent of tjmax and marshalls and home goods and cisco systems after the close. >>> futures now, muted after yesterday's sell-off, a mixed picture. seeing the s&p 500 go fractionally lower the dow off its highs. the nasdaq just fractionally higher at this hour. >>> my next guest says opportunities lie not within the big market names leading the market, but in the small caps. joining me now, simeon hyman at pro shares adviser great to have you here. >> thank you for having me. >> you're talking small caps we have to put you in a higher chair. >> i'm short anyway. doesn't matter. >> great to have you here. let's get serious for a second you're about small caps. i'm looking at

chips which won't significantly slow china down as baidu, alibaba and tencent have been making developmentn their own chips. let's welcome jeong chao welcome to the program. >> thanks fior having me >> it seems obvious whatever the next innovation drives productivity and just connect the dots about why a.i. is so important to china >> over the last 30 years, by the way, we are taking a very longview on this report in a.i. and over the 30 years china has reaped a lot of the dividends, i call population dividends, since the reform started and you saw the rice of thse of the economy rise of manufacturing and the increase of the chinese population, and now the chinese population is set to decline the population -- our so-called population dividends are running out and the only way out of this puzzle is really to increase productivity and china, historically, hasn't had a really big software of the industry and this a.i. made easy may be the answer for chinese companies and for the chinese economy. >> it is a dilemma because unfortunately, the a.i., i guess you could say could be used against a

if you take a look at a company like tencent, ccp has so-called special management shares in both these companies are enriching the hinese communist party? if so, would you go as far as saying people should not invest at all in companies like ali baba, or tencent. >> i favor a sectoral approach. it proposes that by three coverage technologies. it is likely treasury will scope regulations to companies that operate in subcategories. it also has this provision about with a reference to certain end uses by these certain technologies. >> i guess i was referring, congressman, to your investigation into black rock into funneling american dollars into companies that fund the ccp. how do you define those kinds of companies as part of this investigation, are you trying to define those companies? >> yeah. >> it seems a lot of companies fall under that category. not just through blackrock and msci. >> we are trying to help define what is the line. i always have a few simple principles in mind as we consider this question. first, don't fund chinese companies working for the people's liberation army.

the ceo of tencent, in support of the government. in terms of, part of it is company specific, given how depressed the evaluations are, you will get the upswing across the market. shery: when you talk about rotating to ems, she yes chile also cut rates. -- chile also cut rates. lucy: when we look at emerging markets broadly, they tend to be cyclical nature. if we look at the optimism in the u.s. economy, that is looking at strong canonic indicators that have suggested the soft landing scenario is not out of the question. that would be supportive of ems. given the valuations, it is about the risk reward. a lot of bad news is already fact it in when we are looking at asset allocation, and various markets where we are more likely to see appreciation, e.m. is more attractive. shery: is a potential recession in the u.s. factored into the risk assets? one of the decisions by fitch is that they are expecting a mild recession. lucy: the fitch downgraded was interesting. we have seen our range of responses to that from janet yelling -- janet

tencent, alibaba, real estate standing out, it has seen better news in the stock market.imism in chinese equities given the macroeconomic indicators. the broader concerns around lack of stimulus for the market. what else are we watching in the session? the earnings course. we are only 40% underway into the season. financials will be a key one over the course of next week. some of the ones that have reported include china construction bank. cnb will be out later. the focus very much on net interest margins. they have come under pressure. we are watching that key sector. linked to the property sector in china. shery: we go back to georgia. we continue to follow the former president donald trump arriving at the fulton county jail. he has just arrived and he is now expected to surrender, to be processed as a criminal defendant on charges he conspired to overturn the results of the 2020 presidential election. we have more to come. this is bloomberg. ♪ baby, only on game nights. you know you are retired right? am i? ya! save 50% on the sleep number® limited edition smart bed. p

tencent down 1.3%, keeping the lid on hong kong.macro movers, we talked about those green spots on your screen to give you an indication of what is moving beneath. plenty more ahead, including data coming out of indonesia. growth numbers are set to come out today. ♪ haslinda: it is almost 11:00 a.m. in singapore and shanghai. welcome to "bloomberg markets: asia." i am haslinda amin. rishaad: i am rishaad salamat. asian equity benchmarks edging to the upside as fed officials debate for the rate hikes ahead of this week's inflation report, and holding onto gains as oil after ukraine attacked a russian ship in the black sea. israel's the prime minister tells us exclusively he will not pursue the entire judicial overhaul he originally planned. plus, violence is flaring in northeastern india in response to earlier clashes. haslinda: a lack of conviction in the markets as we kick off the week. the jobs data out of the u.s. we have easing unemployment, but wages remain elevated. what does it mean for the fed? chances are we will need more

for tencent, we see it go into international gaming business offsetting. reports. we are still focused on the gaming business but with the weakening economy and rising yield unemployment rates. the company might need to expand its overseas market from his current 10% of revenue. basically we are seeing the recovery in china is uneven. we have still seeing a slowdown in spending. paul: what are we watching for with other chinese tech companies? we're going to be hearing from baidu and meituan as well. felix: some of the chinese tech companies are still enjoying the pent-up demand after the pandemic. just not meituan. we expect them to have a rebound for this quarter of earnings because of consumer spending in retail. baidu, we may see a strong recovery in advertisement businesses. the company may report the first net income. we can see the name skate of chinese tech is still uneven. we did not see the strong rebound after the pandemic we previously anticipated. paul: all right. bloomberg's breaking news editor felix tam. want to get you across an alert on t

we will see if tencent my jd, billy billy can continue that run here. plenty more ahead. bloomberg. ♪ yvonne: top climate stories. the number of people killed in last week's wildfires in hawaii has risen to 93, making it the deadliest in the u.s. and more than 100 years. governor josh green says of toll is expected to climb further as authorities continue search efforts there. officials are facing questions over what prevented alarm system from alerting people. the historic town was destroyed by flames. it is unclear when residents may return to the area. japan is preparing for a second typhoon in a week as airlines canceled flights and rail operators warned of disruptions. typhoon is expected to make landfall tuesday in central japan. authorities have called for precautions against heavy rain, mud, and strong winds. japan airlines has canceled 240 domestic lights for tuesday with around 35,000 travelers affected. china's farmers are facing an earlier than expected assault on their crops this year as extreme weather accelerates the spread of pest such as the fall army wer

look at this number, apple, microsoft, amazon, alphabet, and tencent in china accounted for 10% of all the last 30 years. that is remarkable. only 44% of the u.s. stocks, carl, out perform u.s. treasury bills. this is 17,000 stocks in the united states that were studied. there isn't 17,000 stocks right now. most came and went. that was the point. a lot of creative destruction goes on below the surface in the stock market. the study concluded indexes are the key to understanding, helps smooth out winners and losers. >> that is fascinating, yeah. the slowly shrinking stock market which we've talked about before. thanks. bob pisani, this morning. >>> watch oil today. down around 3% on the week on pace snap a seven-week win streak. fundamentals appear stronger than macro headwinds. head of global commodity strategy is with us. good to see you. >> thank you for having me on. >> so are you saying that the more -- which is the more powerful dynamic right now, the supply or demand? >>. >> right now, it's been macro worries, china, concerns about rate hike that have caused softening in oil pric

[voice vibrating] >>> check out shares of chinese tech company tencent reporting a surge in profit forctations. they said cost cutting measures began to pay off with sales rising across the company's various businesses the stock is down 1% right now >>> meantime, china's largest retailer falling despite a beat on the top and bottom lines, reflecting concerns over a slowdown in the world's second largest economy. >>> new data out of china shows home prices fell in july adding to the mounting worries about the health of the real estate sector despite this, and the looming threat of default, embattled china property chountry garden will continue. eunice yoon has more good to see you. >> reporter: i'm outside of one of country garden's unfinished projects in beijing. workmen were on the property and sales staff were attempting to convince potential customers they didn't have to worry about any of the homes, they said that the company, despite the fact that it is facing default, would make good on its commitment to home buyers. despite that, of course, there are a lot of indications that th

it could be baidu or tencent board meta -- or a meta or an amazon.re this chip is being used. lisa: saudi arabia made a massive investment and is trying to expand into artificial intelligence. i know there have been issues with china. i am wondering how this plays into nvidia as they expand globally a -- they expand globally, concerns of how this technology will be used and where the chips are going. mandeep: the export restrictions have been on deleting note chips. they have their latest chip, they came up with a lighter version not based on the leading edge. that is what they are selling and it is markets to avoid the restrictions. ultimately, everybody is looking to buy these because that is how you develop your large models or do inferencing. with nvidia, they have the technology. they just have to figure out how to work through export restrictions. tom: you are talking about paint drying. you are scheduled to be at the battery insurance seminar in dallas. that sounds fun. i want you to take nvidia and extrapolate it to microsoft and the texas in

. >> becky, we're seeing cvs posting with an adjusted 2.11%, that's tencents better beating handily ond bottom line despite headwinds in the health care benefits unit which saw higher medical costs and medicare advantages as a lot of people get those knee replacements, amounting to 82% in premiums while medicate membership fell double digits from 18% from march. that was partially offset by commercial and medicare enrollment more than $46 million was a big top line beat helped by signify and oak street acquisitions which offset lower co-existence at their existing clinics. at pharmacy and consumer w wel wellness, up 11% is that offset the drop in covid vaccines and covid tests which led to weakness in the front of the store. cvs also taking a $496 million restructuring charge to cover-up coming severance and layoff costs. they want to cut costs in the wake of acquisitions those job cuts should be completed by year en you can see the stock there rising on that news. becky? >> bertha, thank you as you mentioned, the stock up by 1.1%. stock is up by 87. down by 40 before the dmum bers hit