may dispute xiaomi's valuation.po is said to be marketed at up to 29.3 times forecasted 2019 earnings, making it twice as expensive as apple and pricier than tencent, china's biggest internet company. xiaomi says it deserves a premium and valuations because it sees itself as an emerging internet and e-commerce company rather than simply a lower margin smartphone player. the ipo likely begins trading in hong kong july 9. stephen engle, bloomberg news, beijing. emily: we continue our look at xiaomi's ipo as part of our china series. tells tomartner duane paved thewhy he way for more megadeals in the region. >> hong kong has just started ,his new listing structure xiaomi being the first one to file under that listing role. the ipo will be successful, paving the way for innovators,inese tech companies, to go to hong kong. yet another interesting venue. tom: what are your views on the changes around domestic listings? the moves here in china to encourage more of the tech companies to list in the domestic markets via the

it will be interesting to see how xiaomi does.argeting lacoste markets and some of their competitors. they are big brazil and and some of their competitors. they are big braziland india, and some of their competitors. they are big brazil and india, for example. xiaomi slipped into the top five smart phone makers after stellar growth of nearly 75% last year. 92.4 million units were sold so year. 92.4 million units were sold so there is a market that the competition is fierce and xiaomi was, a few years ago, the leading smart phone maker in china and now is struggling to reach the top five. do not forget that apple makes huge profits from premium product like the iphone so we willjust have to wait and see whether the budget version can also offer a good return for investors. now let‘s brief you on some other business stories. german car giant daimler, owner of mercedes benz, has warned profits will fall this year because of trade tensions. it says new chinese tariffs on cars imported from the us will hit sales of its profitable spor

xiaomi uses its snapdragon trip -- chips in their mobile phones.e: you highlighted it, but what's the latest on my xiaomi pulled out of this listing, and is that going to hurt sentiments in hong kong? reporter: it could, because there are a couple of reasons bandied about as why they delayed this listing. one side is still tweaking the rules for the china receipts, which is a new thing in china, but also we are hearing that there has been some disputes between xiaomi and regulators on arm ofuation of the cdr this listing. they have decided to list it. it was expected to be about a $10 billion ipo, but now it's $6.1 billion. perhaps a listing could come down the road instead of a joint simultaneous listing. yvonne: thank you, stephen engle, our chief northeast asia correspondent from beijing. coming up, the impact of trade tensions on u.s. companies. and national foreign trade president weighs in from washington. this is bloomberg. ♪ erg. ♪ haidi: i'm haidi lun in sydney. yvonne: i'm yvonne man in hong kong. you are watching "bloomberg daybreak: aus

look at condition a xiaomi's i.p.o.rt of the series.china ounding partner tells todd mckenzie why he hopes the largest i.p.o. will pave the way deals in the region. > hong kong started a new lifting structure, and xiaomi the first one to file under the rule. that i.p.o. will be for ssful paving the way more chinese innovative tech hong kong as o to company.er interesting > what are your views on the changes around domestic listings, the moves to encourage list in the s to dom sac markets via the c.d. r plan. r rules are e c.d. interesting, because many of the bigger tech sful chinese companies chose offshore markets listing. the fundamental change in china listing requirements that enable similar companies of the future. "t"s to be able to list in china, a lot of people primarily on the c.d. r element of it. just one small portion. the new change encourage the unicorns to list a lot sooner, a lot faster. alley ba ba and -- alley ba ba in. place and others -- tech very and others, had making your job more difficult in th

and xiaomi has started taking orders.ave agreed to buy stocks as cornerstone investors. climbedices in new york the most in more than a week as opec ministers worked behind closed doors to healy rift over production limits. u.s. data showed crude inventories falling last week by more than double the average estimate. opec prepares to meet in vienna friday, the saudi and iranian energy ministers indicated they are moving closer to agreement on the state of supply caps. >> we are converging towards a good [indiscernible] not only the stakeholders in the oil industry, countries and companies but also our consumers. jenna: global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you.s here's a look at the morning this so far. pretty mixed, we see south korea losing steam this morning. let's get the latest with sophie kamaruddin. sophie: stocks are losing steam, joining japan, the kospi up -- off .4%. this was sparked by

moses is our conversation a short time ago talking about xiaomi. of our programs. do check it out. it is tv . ♪ ♪ the fourth most routable startup has filed in hong kong. how bad were they? >> investors are looking at topline growth. it was so a massive loss. some of that was accounting for changes in the fear valley of convertibles. but even on an operating -- the fair value of convertibles. it is getting into payments and ride-hailing. they were able to plead for patients. i think meituan will be the same story. they are putting out these feelers and customer acquisition a new fields. it remains to be seen if investors will indeed as friday high valuation. rishaad: how likely are they going to get the valuation they are looking for? which is what exactly? >> there will be several sales, which is not unreasonable. like 10 times 2017 sales. whether whetherds on you think it will become the next super app for e-commerce, consumer services online. rishaad: will this be another one of these hong kong only listings or will it have chinese depositor

there was a question specific to xiaomi.g list of ,uestions regarding issues valuations, what sort of company, and others. those questions were not going to be answered in time to arrange it in time to be in line with the hong kong ipo. rishaad: we had this huge controversy about hong kong excepting dual listed shares. much does this benefit the hong kong market? >> at the moment, xiaomi is the only one to file for an ipo with dual class shares. there are others coming along. and speaking to bankers others, there is a full pipeline in hong kong.st there was a second part, the biotech companies that don't have any revenue yet. there are a lot of those companies applying to list. year or twoct in a bank we will look back and see quite a transformation in terms of the types of companies listing here and the change from the hong kong focus on finance and real estate towards technology. it will be quite dramatic within a few years. we have to get you back at xiaomi,t, looking theahead of that, this is company and how much it is w

emily: do you expect xiaomi to really stand out or just be one of many? >> i think it will draw a lot of media and investor attention, a name that maybe not everybody globally knows about. eir market share is very strong. in the u.s., you do not see them frequently. this we think will bring more attention to it. we do want to note that we believe that apple has always seen the sound the radar screen. years ago, there were other companies that were supposed to dethrone apple. we firmly believe apple is a stock you want to buy at home right now and there will always be competition, whether we talk about xiaomi, vivo, all of these other brands, there is a lot of competition. emily: you do have a note out on iphone pricing, despite the market saturated, despite the fact that apple's own iphone sales are potentially plan eauing, youlat are optimistic. >> when you buy a new apple phone, people are doing in app purchases on their games and buying apple care. emily: services revenue is never going to outpace hardware revenue. >> you are right. regarding the compa

francine: xiaomi has raised a $4.7 billion in the hong kong ipo. the beijing-based smartphone maker priced shares at 17 hong kong dollars each, the lower end of the market range. separate sources say george soros and a chinese company are among investors that placed the orders. how does this match expectations we had? >> sourced said they were targeting a valuation of $100 billion and ended up getting about half of that valuation, $54 billion, the reasons complex. the markets are certainly rocky, the trade tensions have been challenging. they wanted to raise some money out of the mainland domestic market through the china depository receipts which did not work out partly because regulations are complicated. no caps on has done that successfully and they were not able to pursue that at the same time they did the hong kong ipo. the fundamental reason is they never really persuaded investors

you were an early investor in xiaomi. any concerns about how they were perform given that we know some of the financials are not perfect? of underperformers regulations is new in that option being taken on the table certainly frustrating many. not an easy time to come out and and thecomplicated methodologies and certainly company profiles that most of them understand. it is a hardware company. it is difficult to put one finger on it and the end result i think is what a lot of people are scratching their heads about in trying to figure out how it should be valued. >> what an -- >> another one of our companies and another one we have been bullish on for quite some time, at least global investors pretty much aggregation are a lot of the services are e-commerce. orr food bookings ride-hailing. the numbers feels really powerful there. 700 have gone up more than in terms of revenue. i think the company is well positioned a little more understandable. maybe xiaomi is starting to lessen up. gendermberg's own silly -- bando. muska

shelly: it is interesting because xiaomi does not actually have operations so much in the u.s.u would think from a logical perspective, trade tariffs and things like that would not affect xiaomi. is the affecting xiaomi fact that the market is so volatile and people are worried about emerging markets and china, so that is just not the best timing that you want to introduce yourself on a global sphere for 90 oh. -- for an ipo. we have a pipeline of 20 chinese tech companies right now that it talking about an ipo, a big one already filed their perspectives, and it is not the exact kind of environment you want to go out and introduce yourself on in the global sphere. haidi: thank you so much for that, shelly. a quick check of the latest business flash headlines. amazon is entering the u.s. drug business with the acquisition of online pharmacy pillpack. the billion-dollar acquisition is expected to shake up the prescription drug industry, challenging major chains walgreens and cvs. amazon finished the day higher. walgreens and cvs fell. kathleen: bloomberg has been shareholders are

xiaomi's monster $6.1 billion share offering gets underway monday.artners can count among their portfolio, including moping. as part of the venture china series, this man tells us why he thinks the largest ipo in more than two years will pave the way for more megadeals in the region. >> hong kong has just started this new listing structure, and xiaomi eating the first to file under that listing -- being the first to file under that listing, i hope the ipo will be successful, paving the way for many more chinese innovative tech companies to go to hong interestinganother menu. tom: what are your views on the changes around the moves in china to encourage more of these tech companies in particular to list in the domestic markets with the cdr land? -- plan? >> i think it is interesting because historically many of the bigger tech companies have chosen offshore markets. so the fundamental change in china has to be listing requirements that enable similar countries of the future to list in china. so i think a lot of people focus primarily on the cdr elemen

we do have xiaomi coming up, and ben, you are an early investor.ny concerns about how they will perform, given that now we know some of their financials, which are not perfect? ben it is not an easy time to : come out right now, which you have mentioned. there are a lot of underperformers in hong kong. these new regulations around cer's in china, certainly frustrating many. not an easy time to come out. it is complicated by the fact that xiaomi is a new species, a company that does not fit the usual metrics or valuation methodologies. and certainly, company profiles that most in the public markets understand. it is a hardware company, it is a software company, we do iot, e-commerce services. so, it is difficult up at one finger on it. the net result is that a lot of people are scratching their heads, both institutional and individual investors. trying to figure out how it should be valued. emily: that was msa capital investing partner ben. meantime, xiaomi is on their way to a $6 billion plus marketing, the big ipo. but it may hit a snag. our chief

haidi: what comes next for xiaomi? not hear that, haidi is asking what is next for xiaomi? >> we will continue to do the ipo in hong kong. they are trying to raise $10 billion. doing evaluation. people are talking about anywhere in the $70 billion to $80 billion range. they are going to be holding a press conference talking about the ipo in hong kong. rishaad: the valuation was supposed to be $100 billion. >> estimates have gone down. rishaad: thought they might somehow. thank you very much. haidi? haidi: yep. toh, we're going to continue watch a set of geopolitics on top of the trade tensions, because chinese state media has confirmed that kim jong-un is visiting beijing today. stephen engle has the latest. now it has been confirmed. how much to we know? >> the plane i was tracking was actually -- a great plane that had gone to singapore. maybe it was carrying kim jong-un's bullet proof limousine. not sure. we do know that the state television broadcaster in china has confirmed that kim jong-un will visit beijing toda

haidi: xiaomi starts the reach out on monday. not set a timeframe through chinese depository shares per that could hurt china's ambitions for the tech giant. last week's withdrawal from the plan to tap mainland investors over affected the fundraising goals. didi launches australian operations on monday as it pushes ahead with international expansion plans. in rival starts services melbourne and wants to use feedback from drivers and passengers to shape offerings and other australian cities. this is being bankrolled by a four billion dollars defending round. oil diplomacy ends in production increases. the latest on the weekend's opec meeting and what it means for the oil markets. this is bloomberg. ♪ this is bloomberg. ♪ 8:30 in sydney where markets open in 90 minutes. looking at futures, mildly positive. the index is close to that decade high. sydney futures up .2% after finishing the friday session lower. i am haidi lun in sydney. in hongi am yvonne man kong. it is 6:30 a.m. in the city. you are watching daybreak australia. oppo

. >> you expect xiaomi to stand out or be are of many -- the manyof many -- the part of -- be part of many? >> we think it will bring more attention and help it stand out. this ons always seen the radar screen. years ago, there were other companies that were supposed to dethrone apple. apple is a stock you want to own and there will always be competition. there is a lot of competition out there. on iphonee a new know pricing despite they are potentially plateauing, you are optimistic. >> apple services are really growing. people are doing and at apphasing -- in purchasing. regarding the company's total units, we think they are grown single digits. thesurprise will be on trailing model, the iphone 7 in india and china, not so much the iphone x. $1talk to me about this goal.on market cap apple has been close. do you see apple getting there and when? $200 target price on it. they need to keep innovating in coming out with new products. you think about the air pods, you -- they are doing fantastic. looking to the second half, we expect them to launch three new phones and expect them to be

which tends to have a lower evaluation -- lower valuation as we are seeing with xiaomi and this ipo?del that might change, and i think areus going forward, we seeing more interactions with the industry, especially through sensors, cameras, whatever. we're hoping to drive efficiency and improvement and bandwidth, doing analyst takes best doing analytics. the biggest thing will be 5g and artificial intelligence here at the conference, and china is trying to be a lead, they will be a lead, in 2025, no doubt. stephen:nk you so much, secretary-general of the gsma . yvonne: thank you, stephen engle, for that wonderful interview. for breaking news or every are, we have teamed up with twitter to launch tictoc at number, the first global news network offered on the media, offering a lot of news reports verified by us. if you are on twitter, sure to follow tictoc. this is bloomberg. ♪ yvonne: this is daybreak asia, i am yvonne man in hong kong. kathleen: and i am kathleen hays in new york. johnf this company flannery once to breathe new life into the 126 your old company, my slimming it down a

how does this match to expectations we had four xiaomi?eting a valuation of $100 billion. they ended up getting about half, only $54 billion. the reasons are complex, but one, the markets are rocky now. the trade tensions have been challenging. xiaomi wanted to raise money through cdr's, china depositary receipts. that did not work out because the regulations are very complicated, no company has done that successfully so far. they were not able to pursue that at the same time they did the hong kong ipo. thatundamental reason is they never really persuaded investors that they are more than a smartphone company at this point. and samsung have reached a settlement in their patent battle ending a seven-year fight over smartphone design. what a saga this has been. was it exhaustion, that they said forget it? >> someone told me the only people who won were the lawyers with all of those legal fees. apple got what they wanted, they got the course to side with them on patents. it's good motivation for a company like apple, because it confirms to th

which are listed overseas to also float their shares back home, but the country's smartphone maker xiaomi delaying the share sale in the mainland indefinitely. the firm is still listing in hong kong on 7july. jonathon conant first tried flying trapeze at the age of a0 and has since dedicated his life to it. after co—founding the largest school of flying trapeze in the world, where he worked with sarah jessica parker, hugh jackman and pink, he took another leap into the unknown, selling his company and moving it to the jungle of costa rica. now he spends his days swinging and somersaulting above the trees, and teaching others how to take the plunge. hannah gelbart has been to meet him. when you are in the air, you are not only feeling the elevation, you are not only feeling the lift, you also feeling the gravity of it or. -- of it all. you could die, you could achieve the impossible. all that is true at the same moment. jonathon co na nt true at the same moment. jonathon conant had never touched a trapeze into the age of a0. a few years later, he was running the world's largest flying trap

we got you here to talk about xiaomi.th regards to the valuation, whether it is too high or too low or what kind of company it actually is. >> i think the valuation given the market sentiment and liquidity right now is too high. time, theint in market evaluation to does business which basically is a hardware manufacturing business plus internet retail business, is actually low. if you compare it to the international companies like ants -- apple, samsung, they are low to high teens. at a time like this, you're coming up with an ipo that is 50 times plus and that is a little too high for the market right now. ramy: in terms of market volatility affecting how investors are willing to pay for it, talk to me about that. what are your concerns? hao: i think the market is trying to put in all the complexities we are facing and it is finding it hard. for example, the trade war situation becomes rather complex with the u.s. piling on new threats on chinese exports. also, domestically, because we are facing a macro liquidity enviro

the pricing values xiaomi at half the company's initial goal.hesche bank has failed first public stress test of its combined u.s. business. the federal reserve fault of the company's internal controls, saying there were critical deficiencies across capital planning practices. deutsche bank was the only foreign bank -- domestic or foreign bank to receive an objection. its business made investments to improve planning capabilities as well as control and infrastructure. novartis is to spin off its eye care business alcon as the company's new chief executive refocuses on prescription pharmaceuticals. the drugmaker will buy back up to $5 billion of shares using proceeds from the sale of its stake in a joint venture with another company. the spinoff is subject to final approval by the board and shareholders at the 2019 annual meeting. australia has awarded a 26 billion u.s. dollar contract for nine anti-submarine rickets -- to the u.k.'s bae systems. bae shares climbed in london while those of the unsuccessful italian better slumped -- bidder slumped.

haidi: , an early investor in xiaomi.hat is said to be the world's largest ipo in two years. everyone from. majord dad investors to institutional players are said to be running up. we are joined by bloomberg news reporter manuel. what are some of the names associated with the deal so far? on the right track we will see what the final price will be in the coming hours, but as you said, we are breaking some interesting stories about hyper investors , oruding george soros investment firm hillhouse who are putting in big orders. so it feels like even though the appetite is on the low end of the range, there are some big profile investors back in the company.- backing the haidi: and of course, there are ?oncerns about the listing manuel: exactly, it was a everyone.o they had been quite vocal about their plans, about the fact that they could not make it happen on time. it shows the challenges ahead rs, showing the companies are very keen on trying to achieve those possible listings, but there is still a lot of work to be done.

chinese mobile phone maker xiaomi is gearing up for its huge stock market flotation.up to $6.1 billion from its hong kong ipo, which will be the world's largest in two years. first, christine hah is in singapore. it is going to be huge but not as big as people thought? exactly. at the momentjust big as people thought? exactly. at the moment just to big as people thought? exactly. at the momentjust to give big as people thought? exactly. at the moment just to give you the details of deal, it has priced the shares between 17 to 22 hong kong dollars a piece. so the value of the company is between 54 billion to 70 billion dollars. that is up with some of the world's most valuable start ups. but it falls short of the original plan. they wanted to raise $10 billion and wanted to launch share offers in hong kong and shanghai. they will have been the first to have that simultaneous listing. but the shanghai listing has been scrapped or postponed. no one knows where that stands. but still its investors will include the china giants china mobile. it supplies chips to the dte at

the next company has grabbed early stakes in the likes of alibaba, airbnb, and xiaomi.oomberg what trends will drive the rapidly changing china tech arena this year. >> the first area of focus is the evolution of consumer buying habits and changing. we call it our e-commerce upgrade strategy. investors and companies like alibaba, the dutch cross-border e-commerce company. we are seeing new innovation happening in off-line construction. the companies are leveraging data collected from the consumer off-line online and e-commerce. this is happening in different formats. us, is a big piece for integrating into off-line and disrupting the traditional off-line expense with data. the second area is always social. before if the u.s., you are a vc who finds a facebook every 10 years, you are great. can findin china, you a facebook-type business model every 3-4 years. every 3-4 years there is always social disruption, live streaming video, but the key is and targeted to different segments of users. we have investments in companies that is the number one business in china, and com

chinese smartphone maker xiaomi has announced it won't be listing in mainland china anytime soon, butfirmed it still plans to list in hong kong early next month. beijing has been encouraging chinese tech giants which are listed overseas to also float their shares back home. toshiba says us authorities have completed their investigation into the firm's accounting practices, and decided not to fine the company. the us securities and exchange commission decided to investigate toshiba in 2016 after the firm was involved in a $1.3bn accounting scandal a year earlier. the taxi hailing company uber goes to court in london today hoping to win an appeal to keep its licence to operate in the city. last year, the transport regulator tfl refused to renew uber‘s licence because of concerns about public safety and security. the compa ny‘s approach to reporting criminal offences and how its drivers were getting medical certificates were cited for refusing permission to operate in london. china has freed up billions of dollars in its banking system to cushion the blow of a slowing economy and a possi

not an easy time to come out and that is complicated by the fact that xiaomi are new species. valuationg new methodologies that most of the company profiles understand. it is a hardware company, software company, iop's, e-commerce, services, it is difficult to put one finger on it. i think a lot of people are scratching their heads today, both institutional as well as individual investors, trying to figure it out. another bigabout one? companies,one of our one we have been bullish on for this is veryme, much an aggregation of a one of the services we are ready no. bookings, your shows,iling, tickets for the number is still really powerful there, the types of numbers they generate. gone up over the last three years in terms of revenue. the ipos will come up with a lot of momentum around the business iaomi is starting to feel less of. emily: thank you both. his beef is continuing with anyone who has a negative outlook on tesla. this time, it happened on a companywide email obtained by bloomberg. is inman sacks analyst for a "rude awakening." he expected tesla to deliver on model

rishaad: this could be the second-biggest listing after xiaomi and hong kong.eipt element to that listing. any sign of that happening with this company? in favor hasgument been that chinese compani operating in china are better understood by chese investors. this is a prime candidate. , butn't know if or when there is a high likelihood it will eventually take place. rishaad: thank you very much, david. our asian tech reporter in beijing. after in apa taking off of $10 billion. if approved, it would be the biggest ever take over. expert isonglomerates with me having a look at how this deal stands compared withcki' previous in the market -- with cki's previous for race into the market. ays into the market. deal show the group did not change the direction. it was still global rsification and cash generating assets, what is special is the deal would be the with the new chairman. rishaad: it is cash, isn't it? >> it will help prove himself to investors. rishaad: what doing no of the thard at apa? what has been the response? citigroup to with do due diligence, but di

stocks, xiaomi has brought in six more banks to arrange its ipo.ix are cicx sue not china gaining ground after posting a rise in may contract sales. casinook at macau operators, under pressure from disappointing revenue, continuing to fall after plunging 10%. in jim cna losing 9%ear to date. moren stanley seeing near-term volatility with the world cup and fallout from the pboc looking to crack down on shadow banking. goldman sachs says they see a buy with macau casino stocks. haidi: thank you for that. i'll strain first quarter gdp crossing the bloomberg, a beat come expanding 1% quarter on quarter, slightly above estimates of .9%. 3.1% on a yearly raises, estimated 2.8%, so a strong beat. fourth-quarter gdp revised from prior .9% expected when it comes to the first quarter. the household spending site being a positive contributor to that number. rishaad: looking at it in more detail, the reserve bank of australia knew the number yesterday when they decided not to do anything about interest rates. food for thought. we saw the aussie dollar and what

chinese richest by xiaomi. millionaires are buying up stakes in the smartphone maker ipo.aims of indian real estate fraud. two high-profile hedge funds are investora real estate of prodding investors of $1.5 billion. andreessenitalist horowitz has hired its first female venture capital partner. david: it is about time. us now is jason kelly, our executive editor for global television. .he xiaomi ipo was a big deal over $6 million. but it is not just these three billionaires, but who they are. arguably the three most important people by many accounts in the broader chinese business world. kind of like a warren buffett of hong kong. jason: a hero inside the hong kong community. warren buffett is a good example because he is someone that has that oracle way about him. ma's who have the put china on the map economically. this, iticly endorsing feels like a big deal. david: it is a big deal in terms of the number, but as they set this up, a good housekeeping seal of approval some -- from some pretty reputable people. going back to your buffet example, investors look to big inve

it is complicated by the fact , at xiaomi is a new species company that does not fit the usual metricsr valuation methodologies. or the company profiles that the public understands. iot, hardware, software, e-commerce services. it is difficult to put a finger on it. the net result is that a lot of people are scratching their heads, both institutional and individual investors. that was msa capital investing partner then. -- ben. a $6i is on their way to billion plus marketing, the big ipl. -- ipo. but it may hit a snag. our chief north asia correspondent reports from beijing. the decision to postpone a simultaneous listing in shanghai could hurt their ambitions to lower its larger tech companies --this at home via ctrs cdr's. a considerably shaved down offering, which was expected to top $10 billion. their cfo says there is no timeframe to revive the domestic us to -- listing. they say they scrapped the offer, but that they had no dispute. disputes though, may the valuation. it is said to be market at up to 29.3 times forecasted 2019 earning. making it twice as expensive than apple and

act as global xiaomi isors, and show m seeking about $10 billion from the ipo.is company plans to consolidate and southouth east asian countries under its new singapore subsidiary next year. it's not the asian interest will be captain hong kong, but we are told that the plans are not final, and could change. ramy: the largest player in asia is seeing more opportunities in the region and is rapidly growing its business. speaking at that bloomberg invest summit here in new york, this company's president explained why the investment firm is so focused on asia and whit which countries are more attractive. >> it is hard to generalize about asia, given the mass geography, there are a lot of different dynamics going on. but if you take a big step back, it is probably the fastest growing part of our business today. andave eight offices now asa, and we arthe largest private equity investor in the region today. one of the really compelling trends i think, is growth,alk about the the emerging market economies, which we are excited about. but some of the less understood opp

china's smartphone giant pricing its hong kong ipo for xiaomi it's a challenging time for chinese stocksmid concerns about a trade war or possible trade war with the united states >>> sticking withchina, the nation easing curbs on foreign investment as part of a movement to show china is trying to open up to outside investors. eunice yoon has more on this story. >> thank you very much the negative list is basically a list that lists out all of the areas that are off limits to foreign investors. this list which goes into effect next month has narrowed the sectors from 63 to 48. that includes lifting restrictions on serving and mapping, ship building, power grids and some crops it has changes in finances and autos. in finance, china will raise the limit for certain firms from 49% to 51% for wrought tautos, companies cy own their businesses as early as july there are some sectors that are restricted, such as cloud computing, rare earth mining, oil and gas and legal services there are plenty of people here who are not entirely convinced, including the u.s. ambassador to china that this is op

xiaomi smartphone maker is said to be raising half a billion of its proposed $10 billion ipo from mainlandtors. they may seek $5 billion from the sale of cd-r's and similar amounts from offering shares in hong kong. the split will depend on demand and may change before the ipo, which may be the biggest since alibaba in 2014. coming up, markets in asia pacific swing as investors ,ssess the historic handshake and a lot of ways swinging like the handshake. a cao tothe views from talk about what is important in all this. this is bloomberg. ♪ to the president and accompanied him to the g7. the acrimonious meeting ended w backing up the president's irritation with traditional allies. christine lagarde says threats to economy are rising amid signs of a trade war. she says clouds are getting darker each day, particularly following the acrimonious g7, where president trump turn on his allies in accused justin trudeau of being dishonest and weak. the president also threatened to stop trading with the other six nations entirely. theresa may is in advance stocks to head off a rebellion by pro-european

. >>> fresh news coming out of the chinese hand phone manufacturers, xiaomi, they are giving a range of 18 to $22 per share for their hong kong ipo. they will offer 2.18 billion shares significant size for that ipo there. >>> if you want to get in touch with us about european political risk, feel free to do s so, @streetsignscnbc. >>> coming up, more geopolitical risk the iranian oil minister gears up for a clash with saudi arabia and russia as he tells cnbc there will be no deal on output. ♪ tired of wrestling with seemingly impossible cleaning tasks? using wipes in the kitchen, and sprays in the bathroom can be ineffective. try mr. clean magic eraser with durafoam. simply add water, and use in your kitchen for burnt on food, in your bathroom to remove soap scum, and on walls to remove scuffs and marks. it erases 4x more permanent marker per swipe. for tough kitchen and bath messes, use mr. clean magic eraser with durafoam. brand power. helping you buy better. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him

second as the smart phone maker xiaomi plans for their own ipo.he chinese smartphone giant could end up being twice as expensive as apple once it goes public. morgan stanley says they should trade at a premium both morgan stanley and goldman sachs says they could trade for roughly double apple's value. apple is taking its foray into hollywood one step further with a right in feature films. this is according to people familiar with the matter. they say they are close to creating an animated film. joining us from l.a. with the latest is a reporter. what do we know? >> we know that apple has been in talks with the irish animation studio. that is a quite well-known animation house that may films like "breadwinner." it has received many academy award nominations for its films, and is considered very high-caliber, so apple is really getting in with a high quality producer of content. it says something to their ambition. we don't know exactly how the film will be distributed digitally, but we know apple has been talking to people in hollywood over the pa

well, this was a bit of a rough offering for xiaomi.y are very popular within china and had high hopes of being able to reach greater heights, both with evaluation and the amount of money it raised. sources told us they were ofgeting a valuation billions, and ended up getting about half that valuation, only 54 billion and raising less than $5 billion. it was disappointing for a number of reasons. the markets are certainly rocky right now, trade tensions have been challenging. some speculated they might just pull the offer altogether. also, they wanted to raise some money out of the mainland market through these china depository receipts. out, probablyork because regulations are compensated. -- complicated. the fundamental reason is that they never persuaded investors that they are more than a smart phone company. they tried to make the case that they are not just about the hardware, that they have a good e-commerce business and an internet advertising business, and that sales pitch has not got over that well. francine: what does it tell

they hit a record last year, and a monster rpo -- ipl like xiaomi ahead.he top names in chinese vc throughout the week. tune in each day at 5:00 p.m. in new york, 2:00 p.m. san francisco. remember bloomberg technology is live streaming on twitter. you can check us out at technology and be sure to follow our global breaking news network on tictoc on twitter. this is bloomberg. ♪ ♪ haidi: her to one claims and -- president erdogan claims a one-man rule, but opposition [indiscernible] unleash $100 to billion in liquidity. with the pboc confirming a cut for many banks. haidi: the u.s. and china going -- that you warns of a breakdown in global trade. yvonne: production increased

xiaomi is said to set terms from $6.1 billion hong kong ipo. we will talk oil next. price. oil next, this is bloomberg. ♪ ♪ guy: 45 minutes into the equity market session. let's talk about what is happening in the vienna today. the oil market certainly paying a great deal of attention, iran has put itself on a collision course with saudi arabia at the meeting. bloomberg's team member on the ground, take it away. >> good morning, guy. the session just kicked off and we saw the iranian minister enter as well as the of the -- ofent, opec president president -- opec president. i am very excited to have our guest, who has worked with president bush. you said the one person meeting -- missing from this opec meeting is mr. trump. >> that's right. he is missing because he has interjected himself in this debate we are having. we are going to see more supply from the countries that can increase supply, saudi arabia and russia. that is happening. the question is whether they will be able to agree and whether there will be harmony and unity. is the consensus, and that is where t

mobile, the nation's biggest wireless carrier and qualcomm are among firms that have agreed to buy xiaomitock as cornerstone investors. uts tracking argentinian and saudi arabia and stocks have climbed in they trading after the msci gave two countries emerging market status. they will join nations including a, india, turkey, south africa, and brazil. argentina is in the rare position of getting an imac credit line and an index of great in the same week. afterfernandez joins us 6:30 p.m. u.k. time. that is your bloomberg business flash. anna: thank you very much from hong kong. john is still with us. we will get more details on the specifics of argentina and saudi arabia and their inclusion in the msci. i had this chart, emerging market bond years -- bond yields. the most since april of 2016. our emerging markets work this kind of premium? what is your view? john: you can see here as well that u.s. treasuries have been seeing yields rise much more sharply than anywhere else. when you start looking at emerging markets, you will see a different picture because they are so exposed to what is

may -- xiaomi -- the smart phone maker past its hearing yesterday and it plans to gauging investor demandxt few days did it will be the first listing. that is your bloomberg business flash. -- this is what you should be watching in the coming days good a looming double trade dispute is set to overshadow the g7 summit as he gets underway in canada. anna: we heard from president trump heading back at macron and trudeau. he looks forward to seeing this to german. -- those two gentlemen. vladimir putin travels china today ahead of the shanghai cooperation foundation summit in tsingtao. the summitnder if name needs to be changed. i referendum that could put its central bank in charge of money supply. for more on that, katherine bulkley, good to see you. outline for us exactly what is being voted on. would haveproposal consumers accounts fully backed by central-bank money and held off commercial banks balance sheets. this is a bank is argued this would politicize it and harm the economy. >> what do supporters say? catherine: they are it would prevent the boom and bust cycles . they're hoping fo

. -- xiaomi and investors are said to have raised money end.ng at the lower where is the deal now? >> the deal has just priced in san francisco. the company and the bankers price it. all we know -- what we know right now is that the deal will , whichcated to investors include george soros fund, capital group, we're waiting for this to start trading in july 9. >> what happens next? >> it will start trading on the ninth and meanwhile there is a week where retail investors will get to know. previously we have heard the retail description is not doing as well as they expected. getting amay be larger chunk than what they expected. much.thank you so now, is it time to worry when it comes to emerging markets? em equities have dropped 18% from the bull market peak, the same degree during the euro area debt crisis. investors are $2.2 trillion poorer than they were six months ago. fx commodities and rates at j.p. morgan private bank is still with us. when you look at the emerging market space, over the past quarter we have seen stocks, we ite seen bonds

xiaomi doingg at it after their ipo, and other companies are considering it.one that well so far. getting the big tech companies to list in china, so getting hon hai to do that allows them to curry favor with beijing and allows them to hold on to 90% of check -- of shares and bring in strategic investors. beijing wins because they get to say we have this massive chinese company. haidi: thank you so much for that. foxconn industry rising by 20% in the premarket limit in its shanghai debut. this is bloomberg. ♪ this is bloomberg. ♪ not strong enough at the moment to close business. up premarket against this backdrop of tech stocks under pressure globally speaking. the nasdaq on the way down. place.meeting is taking we saw the japanese prime minister land there. gdp in japan was wait worse than economists had been calculating, the contraction .6%. looking ahead to trade data out of china in the next couple of hours. looking at foxconn and these markets in shanghai and hong kong, here is sophie kamaruddin. looks like that gloom outside the window is reflected in m

rishaad: indeed, it is something we have seen with xiaomi. it takes to make it in the film business? thing it hasfirst got is bags and bags money, and that is what talks in the film industry. type faur bloomberg and billion in net cash. they are well funded. they can buy big. they can pay for a lot of content. it is companies like apple that have the traditional media creators that have the hollywood studios running scared looking to bulk up because they're going to have to compete with this. if you believe companies have in particular is in apple's dna. steve jobs was one of the founders that put pixar on the map. pixar is a company that basically reinvented the animation genre with "toad story -- "toys story." there are a lot of reasons to believe apple can be a success here. the movie business is extremely competitive. ever as good as your last hit film. it is a tricky business. the trends change, and there is a ton of competition. money is pouring into this industry, so it will not be a slamdunk to get into this industry as a producer. ri

the price value of xiaomi is roughly half the company's initial goal.ourth straight day and down 70% from its december high. it has been pressured by security concerns, intense regulatory scrutiny, and the hacking of global exchanges. some are comparing this to the dot-com bubble and its first as it gets close to the crash. ray dalio is planning to give some bridgwater staff more ownership over the company as they move to the next phase of their succession plan. this will give staff a greater say in management. >> we are going from a company in which i led the company in this way, and now we are going to something that needs broader and more formalized partnership. that was bridgwater's ray dalio and that is your bloomberg business flash. david: we turn to bloomberg businessweek where we take a look at stories featured in the latest issue. first, wealth wobbles in sweden. sweden's welfare system is under pressure from an aging population and hundreds of thousands of refugees. goldman moves into main street, looking for growth by lending to the middle cl

analysts say the chinese smartphone giant xiaomi could end up being twice as expensive as apple wantedic. morgan stanley says it should trade at a premium because of market share gains and faster growth trajectories. morgan stanley and goldman sachs and the company could trade at more than 30 times is projected earnings, roughly double apple's valuation. the debut of the world's biggest maker of electric car batteries has produced its third billionaire in today's. the chinese company known as catl rose 10% in its second day of trading. that pushed the net worth of shareholders pass the billion dollar mark. the founder and his top aide became billionaires monday. publishers around the world are stepping up the criticism of a new facebook will see. they are urging mark zuckerberg to reverse his decision to categorize the promotion of news articles as political content. publisher trade groups say that lumps third journalism with thank you. alix: turning now to wall street beat, three things that wall street is buzzing about. david cody totaps lead its acquisition and deals. says he is pre

breaking news from xiaomi.d their ipo, the biggest we have seen in almost two years. wellsay the ipo is oversubscribed, but their ipo order book continues to build, and the ipo price guidance will follow later. of course, there is a lot of talk about the timing of this ipo, given the volatility we have seen in chinese markets and the equity markets in particular, especially here in hong kong. and also, questions about valuation itself. they have reportedly dow the back expectations. still valued as one of the expensive smartphone makers in the world. we will see if we get more details. saying the ipo is well oversubscribed at the moment. once the first word news? tsipras says he will stick with the leaders -- the agreement of european leaders this month. there will be no return to the spending habits that led to the financial meltdown. what happened in greece in previous years and led us to bankruptcy was a huge waste of money, corruption, and i would say irresponsibility in the management of public finance. we