is there further risk of regulatory hurdles in the future for tencent? >> there are always risks of further regulatory hurdles i would argue as threatening as the implications of this approval freeze seemed to be, we have seen obviously an easing on that already, i will argue that however that blip may have affected short-term sales in the past, it actually helps the likes of tencent in the long-term it very much strengthens the narrative of if you want your games to be approved, your best chance is to partner with one of these companies. this then further decreases the competitive threat of large western publishers and media companies trying to penetrate the chinese market on their own. this gives the likes of tencent a firm defense mechanism in their domestic market. this is also why it is so important for tencent going forward, looking at new games releases, it's so important for them to make sure that they are prioritizing ongoing engagement with titles that are already out there to essentially defend against any new freezes that may come into place.

taylor: how much does tencent music mean to tencent holdings? lucas: it's a big deal, but at the moment, tencent music is a $25 billion company, and tencent is depending on $300 billion to dollars-$500 billion. social apps are still booming for tencent. music helps feed into that. wechat is a super app where they want you to come in there and chat and watch video and music. tencent has staked out a leading position in the areas of streaming video and music to make sure people never leave we chat. if it loses its dominance in those other media areas, the strength of we chat on its users is weaker. taylor: that was lucas shaw in los angeles. that does it for this edition of bloomberg technology. bloomberg technology is livestreaming on twitter. check us out @technology. be sure to follow our global breaking news network at tictoc on twitter. this is bloomberg. ♪ from the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it betw

taylor: how much does tencent music mean to tencent holdings? lucas: it's a big deal, but at the moment it's a $25 billion company where tencent is 300 billion dollars to 500 billion. gaming and social apps are still much bigger for tencent. wechat is a super app where they want you to come in there and chat and watch video and music. tencent has staked out a leading position in the areas of streaming video and music to make sure people never leave wechat. if it loses its dominance in those media areas, the strength of wechat on its users is weaker. emily: that was bloomberg's lucas shaw. that does it for this edition of "best of bloomberg technology." we will bring you the latest in tech throughout the week, 5:00 p.m. new york, 2:00 p.m. san francisco, and we are livestreaming on twitter. be sure to follow our global breaking news network tictoc on twitter. this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welco

taylor: how much does tencent music mean to tencent holdings? but atit's a big deal, the moment it's a $25 billion 300any, and tencent is booming dollars-$500 billion. social apps are still booming for tencent. we chat is a super app where they want you to come in there and chat and watch video and music. tencent has staked out a leading position in the areas of streaming video and music to make sure people never leave we chat. that was lucas shaw in los angeles. that does it for this edition of bloomberg technology. we are livestreaming on twitter. be sure to follow our global breaking news network at tictoc on twitter. this is bloomberg. ♪ from the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250

taylor: how much does tencent music mean to tencent holdings? lucas: it's a big deal, but at the moment it's a $25 billion is 300, where tencent billion dollars to 500 billion. social apps are still booming for tencent. we chat is a super app where they want you to come in there and chat and watch video and music. tencent has staked out a leading position in the areas of streaming video and music to make sure people never leave we chat. if it loses its dominance in those media areas, the strength of we chat on its users is weaker. emily: that was bloomberg's lucas shaw. we will bring you the latest in tech throughout the week, 5:00 p.m. new york, 2:00 p.m. san francisco, and we are livestreaming on twitter. global to follow our breaking news network tictoc on twitter. this is bloomberg. ♪ from the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pa

tencent have done better than expected ? faring. tencent have done better than expected? yes, revenuejumping 35%, so strong numbers from tencent. but the stock fell by more than 4% on wall street because it warned of a difficult environment going forward. there was some good news. tencent is best known for its we chat platform, but it biggest revenue is video games, and its reve nu es rose revenue is video games, and its revenues rose 8%, primarily driven by smartphone games. they surged by 26%. its latest game could help the company rake in $1 billion in annual revenue, according to analysts. the gaming unit‘s revival is good news for investors, because remember a year ago the government tightened restrictions on graphic violence in games, so approval for new games fell sharply, affecting tencent‘s bottom. the focus at the moment is alibaba. yes, investors haven't been too happy with the firm, the stock falling 16% since may because they are worried about china‘s economic slowdown and an escalating trade war with the us. alibaba is like amazon, paypal, and twitter

to alibabaaddition earnings, we expect tencent and that package illustrates the deals tencent has been involved with over the past several months. tencent takes the approach of making massive investments abroad in companies like reddit, tesla, snapchat but they also take minority stakes in companies they want to bolt on top of we chat so they can further gain growth from their more than one billion users on the platform. if we talk about what to watch when it comes to these companies, tencent, alibaba, we can be here forever so let's zero in on alibaba. what should we be tracking closely? selina: when it comes to alibaba, we want to be watching some of their investments in lower tier cities, cloud computing, artificial intelligence, we want to drill down on the next wave and for tencent that will be in business services. how that can drive growth for tencent. revenuee largest drivers, we are seeing them come off of 2018 lows when there -- where they suffered from regulatory clampdown's. we are seeing them monetize on new games like peacemaker elite, but they have the regulatory risk. w

we talked about tencent already. the revised target price you see 425, about 100 over hong kong levels. and really reflective of the turnaround slightly we are seeing across southeast markets. here is your reality. have a look at our bloomberg chart. now the value of negative yielding bonds globally. that is for the first time on record. our next guest will take us through what is still valuable. reminds me of top gun. there is a scene, because i was inverted. nikkei to do five headed to lunch break. this is bloomberg. ♪ mberg. ♪ >> what's happening today is broader than just the fed. it's about global economic weakening. >> you don't need an inverted call to know things are growing anymore. >> the bond market in the u.s. is screaming we have had enough. >> if you see once again, six weeks to inversion, followed subsequently of the yield curve starting to steepen, then i would say, yes, that is a sign of a recession, and it's also signaling you a turnaround. >> the fed took in what is happening with stocks. >> th

coming up, tencent out with disappointing revenue growth. we will discuss how china's slowdown is weighing on the company. this is bloomberg. ♪ emily: tencent reported second-quarter revenues grappling with increasing and a broader economic slowdown. meantime, it was a busy quarter for the tech giant. barely a week went by when they were not making deals of some kind and tieups involving everything from super mario to lady gaga. spending looks at its spree. >> back in april, tencent struck stalling salese with nintendo. in may, it was one of a few chinese names that pulled the right strings with the hong kong managerial authority to win a virtual banking license. back home in shenzhen, equally bullish, sending an agreement stock exchange to work on cloud computing research, and it kept out the fountain pen to sign an zte.ith in june, it teamed up with a singapore investment giant to invest in a start up in the u k last month, it went mobile in invest $100 million in a local streaming company. it also partnered with bmw to develop self driv

emily: tencent's reporting wednesday missed expectations. online add revenue grew a worse than expected 16%. this is a -- they grapple with competition from rival bite dance. barely a week went by when tencent wasn't making deals of some kind that involves everything from super mahere to lay dagaga. bloomberg looks at its spending spree. >> back in april, tencent struck a deal with anyone ten deto revive stalling switch sales and unleash the console on the mighty china market. in may, one of a few big chi neas names that pulled the right strings to win a virtual banking license. back home in shenzhen which was equally bullish, working on cloud computing research. and kept out the fountain phone sign an m.o.u. with z.t.e. to test 5g tech on cloud gaming. and they invested $35 million in a startup in the u.k. last week it went mobile in india to invest $100 million in a local streaming company. it also partnered with b.m.w. to develop self-driving cars in china and it said go, go, go to pokemon. they're developing new computer games to help pi

tencent very much in the spotlight. this as we learned how the trade tensions may have impacted the company along with hong kong exchange. the stock exchange operator will show us how much of an effect perhaps these protests in the city have had on the earnings outlook. shery: a busy day for the earnings report. a quick check of the latest business flash headlines. moody's is wanting exxon mobile -- warning exxon mobil that is credit rating may be lowered. highest rating to the $7 billion offering of senior notes, but stable outlook is under pressure because exxon is outstandin outspending cash . protests ingoing hong kong have prompted china's biggest bank to slash its view of cathay pacific. the wideningrom unrest damages the airlines brand. the bank has a stock price target of six hong kong dollars hay.cat it's totalu says number of daily active users has topped 200 million this month. that figure includes unique mobile devices that have accessed the app at least once a day at the start of july. baidu said it total h

but what did we learn about the gaming segment at tencent? selena: for tencent the worst is over, given that this is still the company's most important revenue line. now we did see them start to monetize their important games, including "peacemaker elite." for those who did not know, this is the new, less violent version battlevery popular royale game that did not get approval from chinese regulators. we did not see the full growth from game type monetization, but analysts are expecting it to pick it up later in the year. you mentioned censorship for any company in chinese -- in china in the media space. they have to deal with government sensors, and those regulators haven't been improving -- approving these game titles fast enough. we also heard from ceo pony ma that they are going to be focused on making less violent games, trying to manage the time and keep a balanced profile of these games especially when it comes to teenagers. those ad sales around media ad sales were also hurt significantly by censorship, and the expectation is that as

tencent music, the music streaming arm of the chinese tech giant tencent holdings, is often referred to as china's spotify. they will be reporting earnings on monday. the company continues to grow the number of subscribers it has and the number of subscribers it is able to retain. both of those factors will likely have a positive impact on their earnings. take a look at their last report. revenues from online music services were up by almost 30%, beating expectations. now, the company is also reportedly in talks to buy a 10% stake in universal music group, the record label behind artists like ariana grande and drake. if that deal goes through, it would allow universal artists to be promoted on tencent. it is ben's birthday today so he is not really on it as much as usual! i did forget that we are overcoming that on air! joining us is simon french, chief economist, panmure gordon. we were talking about tencent and given the us china trade spat it is interesting how these massive chinese companies are doing. you mentioned the chinese companies and also walmart and all three, the result

joe: coming up, he postponed come back for tencent. how the chinese lowdown is affecting the company. we will discuss that. this is bloomberg. ♪ caroline: we have numbers on cisco that disappointed in terms of their first quarter forecast, revenue coming in light, and many worrying that the china- u.s. tensions are hurting them when it comes to equipment. we heard the ceo say that he saw a slight macro shift in marriage in july. we will see how that unfolds in if there any clear risks shown by the business leader. asia had, and more earnings for you. tencent's comeback is taking longer than expected. we will bring in shery ahn. interesting time, particularly when they had a breakout game. but not enough to -- peacekeeper, it was a breakout hit for tencent, especially after last year, when they could not approve some of their games. this was huge, but unfortunately with ad sales it was not great, because they had other competitors charging less. they took a lot of those ad revenues that they wanted. so revenue growth disappointed, com

and we have tencent coming after the bell with its numbers. let's look at the reaction to currency in the wake of the china data. the china data was weaker than expected, so you saw a drop in the aussie dollar, down around two tens of 1%. the offshore yuan is also weakening despite the fact the pboc said the yuan fixing little stronger than what the market was looking for today. the korean won, though, jumped the most in nine months, up by seven tens of 1%. the japanese yen is stronger, but it weakened quite substantially yesterday, said the dollar coming off a little against the japanese yen. of course, we still have tariff concerns weighing on markets. just kick down the road a little, matt. matt: juliette saly, thanks very much for joining us. speaking of, it is a big miss for china's economic data. week figures across the board, especially on the industrial front, are taking some of the shine off the market relief brought by president trump's trade reprieve tweet. fromtrial output rose 4.8% a year earlier, versus the median estimate of 6%.

like tencent, or alibaba, or even walmart? not yet, to answer your question. 85% of companies in the united states have reported overall. there is still about a 5% earnings beat, so that is not bad. i think what the market is really looking for is whether or not on september one this last tranche of goods coming from china into the united states will be tariff at a punitive level. that will be in theory a game changer, particularly for retailers in the united states, who are very nervous and concerned about that. we will have some iconic goods, smartphones, clothing, apparel, footwear, and so on, we'll all be tariffed, and that is very different from the situation we have right now. india has set ambitious targets for the adoption of electric vehicles, and in the latest budget country's finance minister has laid out a host of tax incentives for those choosing to buy battery—powered cars. as zoe reports, major challenges lie ahead. frame, interior, polish, repeat. this he owned a factory produces a petrol burning car every th

still to come, tencent comeback is stalled. we will break down the latest results as the company looks to move on from a horrendous 2018. kong: the latest from hong as the tension turns to the -- attention turns to the prospect of more protests this weekend. this is bloomberg. ♪ shery: this is "daybreak: asia." paul: president trump has been tweeting his support for president xi in dealing with what he called the hong kong problem. saying that the chinese leader can deliver a quick and humane solution. this tweet comes with more protests planned in the city that is feeling the economic impact of the disruption. , aphen engle is in admiralty key business and tourism part of hong kong. our conditions -- consider -- condition seem to be [inaudible] economically. keeps: the government going on about the damage to the economy. that is a main reason why protesters took their protests for the last six days out to the airport. they wanted to spread that message internationally and have burn,d the slogan, if we you burn with us. they

tencent shares are down more than 10%. why? antitrust regulators are probing the company's deal with top record labels like sony, warner, universal, giving exclusive rights to lots of their music. as a matter of fact, tencent has had a 31% surge in revenues as a result. and, remember, sony and universal own a stake in tencent. they a public offering last fall. tencent is in talks to buy a 10% stake in universal. a lot of crossties. regulators in china are taking a look what exactly does this mean? meanwhile i want to talk about anthony levandoski, former google alphabet employee, charged with 33 counts of trade theft, stealing info from google to bring it to uber. each change, each charge that is, carries a maximum sentence of 10 years a fine of $250,000. a lot going on there. anthony obviously charged with 33 counts of trade secrets. that is an important story there. back to you. ashley: yes it is. gerri willis, thank you so much. financials are getting cooked in the august heat. citigroup, bank of america, goldman sachs, expe

instead of future and their flicks tencent video. and your crew are popular platforms for short videos that last around 15 seconds are flooded with $800000000.00 visitors each month the current market leader is pipe dance with a program. outside of china we know it as to talk. another innovation to video streaming is on the platform user comments are displayed live as the video plays. things are trending more and more towards live streaming the market leader who counts 25000000 active users every month and the company takes uses supervision very seriously with the help of ai more than 1000 schuman contemn managers monitor streams for violations they look for pornography depictions of violence and calls to violence but smoking on screen or showing last could also get your account blocked the tiny state has started much earlier than u.s. based and european platforms to develop a vast institutional infrastructure in order to control and censor content in the west this is called clinton moderation in china they call it content management

but what did we learn about the gaming segment at tencent? selina: the worst is over, given that this is still the company's most important revenue line. we saw them monetize their important games, including "peacemaker elite." for those who didn't know, this is the new, less violent version of the popular battle royale game, but didn't get approval from chinese regulators. we did not see the full growth from game type monetization, but analysts are expecting it to pick it up later in the year. you mentioned censorship in the media space. they have to deal with government sensors, and those regulators haven't been approving these game titles fast enough. we also heard from ceo pony ma they'll be focused on making less violent games, especially to teenagers. those ad sales around media ad sales were hurt by censorship and the expectation is that as to what content can be shown. emily: meantime, wechat, of course, is the crown jewel of tencent, a super app to which there is no equivalent in the united states. how is wechat doing? selina: we rel

let's talk about why we would want to deal with tencent. emma: it is about selling a 10% stake to tencent. the idea really is all about access to china. that is the reason they want to sell that stick to them. the idea is tencent would promote universal mesic artists -- universal music artists like the likes of taylor swift, drake. subscription services have ground and they have gained more revenue from those, so they are looking at more areas for growth. this particular deal would now you the whole of universal music group at about 30 billion euros -- would value the whole of universal music group at about 30 billion euros, which is the current market value for vivendi as a whole. vonnie: is there any chance the u.s. might actually block the steel in some light -- block this deal and some light? emma: this indy doesn't seem to think there would be any reason for the u.s. to block -- vivendi doesn't seem to think there would be any reason for the u.s. to block this deal. that thatot expecting would necessarily happen. vivendi is looking for

results for tencent are out and are on -- and are a massive company. ook/does 2019 book -- l -- look? >> it was battered by the long delays regulators put. they could not monetize the most lucrative games. so we can expect a big revenue boost. on the gaming front, which is its most important revenue line, that is supposed to have improved quite significantly. but investors will also be watching newer business lines, areas like financial technology, payments, business services. that is a big new focus of tencent as they start to see saturation and slowing growth in core areas. , investors are also excited about the possibilities for tencent to continue to monetize its more than one billion users, which here in china, is necessary for everything. everything from flights, payments, cars, there's a lot to watch out for in this quarter. matt: thanks so much for joining us. bloomberg's china correspondent selina wang on facebook, tencent, and all the biggest tech stories. let's go back to london with annmarie hordern. annmarie: the biggest loser this morning

vivendi at by nearly 6% as they are in talks with tencent for a stake in the music business. deutsche post up by 4%. we spoke to the cfo earlier. it is the domestic german story that allows them to be more positive on revenue guidance this morning. let's have a look at the number of stocks on the downside. metro is the biggest father, down by-- faller, 5.6%. takeover talk around this business. that is part of the conversation. intercontinental hotels down by 1.7%. they have been talking about how little exposure they have to the hong kong market. that is one of the news lines coming out from the earnings call. let's get a bloomberg first word news update. >> china has denied it manipulates its currency and is taking steps to slow the yuan's dissent. the pb -- descent. all is bigger the fl than expected. president trump says it china dropping the value of its currency is a major violation. the notes have since erased some of their gains. recession signals are flashing. president trump has delivered his most thoughtful condemnation of racism and white supremacy following the ma

tencent has the one-year option to double that stake. to findhad planned other partners to buy minority stakes. according to compensation consultant johnson and associates, bonuses for equity traders could fall as much is from a year earlier. fixed income counterparts could see a and percent drop -- a 10% drop. barney's new york filing early today for bankruptcy protection. at the boutique have squeezed the company. alix: take a look at this. this is the oversold versus overbought level. we went from overbought to oversold in six days, huge move. joining us now, paul siena, bank , bankrica -- paul ciana of america merrill lynch chief technical strategist, and dean curnutt, macro risk advisors ceo. paul: we expect there could be a bounce. but the bad thing about oversold conditions is it traps longs. these headaches across metro -- across macro and the best other set of oversold indicators that are not really oversold yet, those longs will be trapped, and the sharp move could continue. david: is that your experience, that we are likely to

chinese tech group tencent, has bought a 10% stake in universal music group. universal — the world's biggest music company — already has its content streamed by tencent in china as the result of a deal struck in 2017. lady gaga, taylor swift, drake, kendrick lamar and 50 cent are among the artists on the universal label. july's hot weather failed to boost consumer spending in the uk which fell to a new low amid brexit uncertainty and slow real wage growth. average retail sales over the year tojuly rose by 0.5% — according to the british retail consortium. it said the "challenging retail environment" was taking its toll on both the high street and online. facebook is failing to shut down groups on its site where fake amazon reviews are sold, consumer group which?claims. the social media netowork was urged injune by the competition and markets authority to probe the sale of fake reviews via these groups. which claimed to have uncovered several active groups that recruited people to write fake testimonies. kate bevan is the editor of which? talked me throug

tencent upgraded to buy. that stockwery, flying 8% here today, and china resources beer reporting results. let's look at the stocks we're watching. what a week it has been with flight delays, cancellations, airport violence we've seen. we saw 10 year lows earlier this week. it seems we bounced back a bit. we're watching austin tria, as well, after reports of shorting the stock. they are coming back and denying the allegations. you see the stocks coming back. david: alright, looking at india, fairly flat. davina, what's on deck this friday? davina: so, while they are showing .5% gains, we missed out before that happened across global markets the previous session. yesterday was the independence day holiday. keeping that in mind, you probably see an account of that and may not see a big upchuck -- uptick. it was crucial support level. as long as we hold onto that, we're probably in a safer spot. below that level, we are down which is the next level that comes in. extremely has been shallow and narrow. they're al

the ft leads on the chinese tech group — tencent — which has bought a 10% stake in the universal music label — whose artists include taylor swift and lady gaga. and, the daily mail reports that one in eight deaths in the uk last year was caused by dementia — making it the biggest killer. the varied bench as he can see. brexit is dominating its fair to say as it often does, and let's talk about the independent, brexit blame game, michael good of attacking deq for refusing to negotiate with the uk. you saying we are back to square one and where we were three years ago, looks like a stalemate. not for the first time are we looking through the brexit looking glass with the british government refusing to negotiate with the eu, unless the anti—democratic... to negotiate with the eu, unless the anti—democratic. .. unless that backstop is dropped they will not talk to the eu, they say we are not going to talk about the backstop so we will talk to you. and some of the government saying well then when i got to talk to me there. the clock is ticking now, 85 days tomorrow. until the 31st o

shery: one of those projects you have going on is with tencent. in your earning statement, you talked about cloud gaming as a potential forward vertical. explain what that means, and how it will annexed essential growth. -- it will add existential growth. >> cloud gaming is one of the this point in time. our partnership with tencent is to take cloud gaming to the next level. we are working on the hardware and software side of things, and the services. this is going to contribute to extent of our growth. the first half of the year, we have grown 30% year on year. we see this growth continuing with the growth of the entire gaming industry. paul: let's talk about your fintech performance. that is a new area for you. you called the result robust. how important do you see that as being part of your business going forward? you are certainly available in malaysia. are you finding competition tough? perspective,ngs in if you look at our services business, even for an ipo, we spoke about this ecosystem we have built. hardware and software services. on the

let's have a look at tencent. we were talking about the fact most analysts expected it would seem a bit of a slowdown in ad revenue, but it was worse than expected. ad revenue only coming in at 60% growth. it has been hit by rivals and we start to see this broader economic slowdown hit tencent. you can see the 20 day moving in terms of volumes on this stock is very high, we have seen sawes fall by 3% after we the u.s. fall by 4%. it has prompted broker houses to cut their price targets on hong kong -- on tencent, i should say, after the numbers. citibank and goldman have , calling it a disappointment. nejra: let's get the bloomberg business flash now with tom mackenzie. >> thank you very much. hong kong's ongoing protests making companies think again about fundraising in the city. several chinese companies are reconsidering plans to ipo. planesapped three because of the unrest. they will now instead look at a u.s. listing. morgan stanley nabbed this year's largest ipo, but the firm is missing out on the second lar

tencent holdings. there, elon musk is also talking about the country's ai ambitions. let's listen. this aive launched literacy program, which is very yesterday at the exhibition. today we are talking about connectivity and the infinite possibilities. looking back on the ai in the past year, we have a lot of highlights, a lot of new development in terms of ai research applications. ai lab covering fundamental research to application. we have also a frontier robots,ion lab covering quantum computing and iot networks. we will build an engine of technology for the future, ai application research. i want to share some opinions. ai is general use of generalized to specific purposes, so it is making this progress. this is the inevitable trend in the next stage, a very important is human intelligence plus artificial intelligence and we are moving toward autonomous ai. human interference is becoming less. machines have a greater ability to learn from the environment. starting in 2015, our ai lab has as oneed our goal, which a lot of international champions. also, together with our game team

paul: -- is in talks to sell a 10% stake to tencent. shares soared on a plan that would value the top music is this at $43 billion. efforts to sell the state have stumbled. he says it is discussing cooperation with tencent and wants the chinese company to promote universal artists. paul: it is keeping a close i on google, tweeting more accusations that the search is working against him in the run-up to the election. president trump says despite the meeting with the ceo, he was assured google had no plans to influence the results. google has repeatedly denied the president's claims and dismisses all suggestions of political bias. paul: if you're looking for advice on investing in simtech, it seems you could do worse than us snoop dogg -- ask snoop dogg. payments and banking firm -- payments and a banking firm reached $5.5 billion after a fresh round of funding. some big man to have followed his lead. shery: disney fell in late trade. hit by falling themepark attendance, spending on used streaming services, and the costly flop of a marvel

for e-commerce and tencent is more popular than facebook is here but that's not all. but i do use maps service instead of google maps. instead of twitter and we chat instead of. in china separate providers for almost every online service available in the west but they're far more than just companies in many fields like live streaming. and online payment chinese providers have become global leaders don't you know stockman is a professor at the hattie school of governance in berlin and an expert on china's digital trends she says uses play a big role in these developments one main difference between chinese users and european users is that chinese. internet users a fast adopters so when there is a new platform they will immediately go and try it out. we chat alone has more than $1000000000.00 users a month. pay is the leading mobile payment service it works in supermarkets and at restaurants hardly anyone uses cash in china anymore users can even book doctor appointments. we chat is like this without it getting around in china isn't easy. social media platforms like we

a tv, alibaba and tencent. we will see what happens. they need to show discipline and sustain their momentum. they need to continue to focus on content to boost user engagement. our asia techhan, editor with the latest on baidu. let's get a quick check of the latest business flash headlines. former disney accountant is accusing the company of overstating revenue for years. and has filed a series of whistleblower tips for the sec. he worked as a senior financial analyst at disney for 18 years and claims employees in the parks division systematically overstated revenue by billions of dollars. disney denied her allegations in a statement for market watch. trade standoff between japan and korea is taking its toll on tourism. korean air is scaling back when --yet -- many of its to hand japan routes. there are increasing flights to popular southeast asian destinations. korean air is having a rough ride this month after earnings fair share and sales missed analysts estimates. shery: let's get straight to a preview of what to watch in markets l

is a domestic company listed in shenzhen and some of the investors of the company -- rishaad: i bet tencent is involved somewhere. david: it is actually an alibaba affiliate. it, go checkt seen it out. up, our favorite segment. rishaad: chart to chart, reporters fighting it out with these graphs. this is bloomberg. rishaad: it is that time. battle of the charts. -- markets david: let's kick things off in singapore. joanna, good morning. joanna: i've got month-end rebalancing for you. month,he big moves this you had bonds moving up, stocks moving down and the extreme between them is in the top 10% of extremes. people are looking for a big rebalancing. and the going to today s&p 500 rose 1.3% yesterday but a lot of people think it is not done so look for those close today -- flows today affecting bonds and stocks. rishaad: nicely done. suit, maybe he's going to coordinator. >> i'll ignore that. what you are seeing in this chart is big momentum trade. pretty straightforward, by the winners and sell the losers and that has been a good strategy this year. you can see how much the strategy has ou

tencent's come back taking longer than expected. second-quarter revenue was not enough to impress analysts as ad revenue struggle to outpace forecast. many days trading below its ipo price. it fell to a record low on fears of a global slowdown, adding to lingering's appointment was last week's second-quarter results. those are the top global tech stories we're watching. shery: thank you. an ipo,as filed for giving potential investors the most detailed view yet of its finances and revealing breakneck growth on the back of massive losses. let's take a closer look at the filing. what, if anything, do we know ? out the company's valuation >> nothing yet. what we learned from the filing was a lot of the pieces behind the underlying economics of the , the interrelations between the ceo and the company, but we did not get any real feel for the valuation. that is going to be parsed out over time. emily: talk to us a little bit about the massive losses here and its investors can get on board with it. this is a company that has a andue corpor

life was supposed to be getting easier for tencent. the government cracked down on gaming, which has been in place for quite some time. that was coming off. why did it not have the effect the market was looking for? abigail: great question. they have actually lifted a little bit, but it is slower than expected. one of the games "peacekeeper elite" has been green lighted, but the expectation was that once they lifted the lid on that regulation, it would happen very quickly. the turnaround is not happening as quickly as some expected. plus, it seems some analysts are more worried by their ad business. company wither competition coming from that way, plus regulation from china. vonnie: thank you for that. that was our stock of the hour with abigail doolittle. it is time now for futures in focus. joining us in the studio is knuckman of is adam agoura financial. what does this mean for inflation? new swing highs in the stock market, and we have given back those gains. if you look at some of the other flight to quality incidents, look at the

in china it's a bit more complex because you only have two players in the digital centre, tencent and alibaba. there are others obviously but they both represent a majority of the digital space. their increasingly having to butt heads more and more —— they are. that means they have to grow into each other‘s spaces, and it will be interesting to see the alibaba strategic choices into where it expands to try to enter that race more aggressively. in the us, it's a bit more clear—cut. walmart has to ta ke bit more clear—cut. walmart has to take on amazon. they have a small fraction of the e—commerce market as of now. but they have done really well in that? they have done really well, absolutely, really growing their presence through partnerships isa their presence through partnerships is a big part of it. their advantages the footprint, they have an incredible footprint to leverage andi an incredible footprint to leverage and i believe there plans is 800 more stores this year —— advantage is. we'll watch this space, will get the numbers later and thanks for your analysis t

vivendi is in talks to sell a stake to tencent. tencent has a one-year year option to double that stake at the same price. vivendi plans to find other partners to buy minority stakes. wall street bonuses will take a hit this year. bonuses for equities traders could fall as much as 15% from a year earlier. fixed income counterparts could see a 10% drop. barney's new york filing for bankruptcy protection. rising rents and fewer visitors have squeezed the chain. barney's has been trying to find a partner or a buyer. that is the bloomberg business flash. tom: extraordinary moment in the last few days, and now we see a major off hsbc who has been dead right about low yields. they go even lower. i want to go to the equity markets and what lower for longer yields mean. if we sustain sub 2% yields i have to flip the reciprocal which means value stocks should be trading with a 40, 50 multiple but that is not what is happening. gina: it depends on the equation of where is growth. tom: we did not see growth forecasted forward. gina: we did no

tencent is saying they're buying a 10% stake in vivendi french and media company. that's boosting that basket. something to keep an eye on, especially in the light of u.s./china discussions sentiment is more positive today in europe. >> a lot of green on the screen. maybe a big surprise glad to see it thank you very much. >>> also important to note, the markets are still having a pretty good year you have to keep that in mind. the nasdaq up about 15%, even with yesterday's drop. so let's get color and context into everything going on with rob morgan cio of fedi financial. thank you for joining us i'm not trying to say yesterday didn't matter. it did it was scary, everything fell. the market internals were grim however it's a drop inside of what has been a relatively strong market. how do you read it where do we go from here >> brian, i think you hit the nail on the head any time you have the worst day in equity markets in a year you have to maintain some perspective. you hit on a couple of things. this was probably the best first seven months for equity markets in

vivendi's in toxic to sell a 10% stake in universal music with tencent. it would valley the world's most top music business at $11.2 billion which means efforts to sell a universal stake as investors balk at the terms. it is discussing cooperation with tencent and wants to promote artists. president trump says he is keeping a close eye on google, tweeting more accusations that the search engine is working against him in the run-up to the election. he says despite a meeting with sundar pichai, the ceo, who was insured that google has no influence the results. if you are looking for advice on investing infant tech, you could do worse than asked the rapper snoop dogg. at $5.5s now valued billion after a fresh round of funding. some big names have followed snoop's lead, including blackrock and the commonwealth bank of australia. those are the top global tech stories we are watching. shery: disney shares slumped in late trading after quarterly results fell short of estimates. earnings were squeezed by falling theme park attendance, spending on new streaming se

. >> tencent reported second alix: tencent reported second quarter revenue that missed analyst estimates, while the chinese social media and gaming company beat expectations, online ad revenue grew worse than expected, 16%. what are investors focused on here? it seems to be a mixed bag. >> even though those profit numbers beat expectations, the focus was really on decline around online ad revenue. it is a promising area that starting to see it get hit by broader economic issues in china as well as competition. what was interesting on the call was where the company pointed out the slowdown in advertising ad sales buys. this is from the automobile sector, the real estate sector, the financial sector which is really not a surprise, given a the string of weak economic data that we have seen come out of china. the world's largest crude oil producer will soon donate part of the world's biggest oil refinery. saudi aramco will buy a stake in what is estimated to be a $15 billion deal. >> i can attest the company is ready for an ipo. the timing of the ipo will be determined by our shareholders or

soundt seem to like the .f tencent music >> chinese made a vow to clinch luxury hotels in the u.s. we're told south korea asset asancial group is emerging the leading bidder. is working to arrange financing. package 15 hotels is $5.5 billion.ise that includes locations in new francisco and jackson. >> american airlines is won court order to block a claim low solo down. the judge in technically made order to stop encouraging -- plenty more to on "bloomberg daybreak." this is bloomberg. >> this after we time ways on the asx on monday. did close few points higher. equities all closing lower on monday. seeing futures point to a weaker open here. i'm paul allen in sydney. >> we're 6:30 p.m. "bloomberghing daybreak" australia. >> hong kong airport has been operations after protests forced the cancellations of all flights on monday. the china allying said hong kong critical juncture and there are growing signs of terrorism amongst the demonstrators. >> protesters have extremely on us.us to attack seriously violent crimes. >> president trump former director anthony scaramucci said he won't

tencent plunged after outperforming and beating expectations. at $835 million, below forecasts and shares plunged more than 11% one point. currently 12 buyers and no sellers. shery: a chinese insurer might be able to clinch a buyer from luxury hotels of u.s.. a financial group is emerging as a leading bidder and arranging financing. the package of 15 hotels is expected to raise more than $5.5 locationsd includes in new york, san francisco, and jackson hole. paul: american airlines has won . court order a judge in texas ordered a workers union to stop encouraging staff to delay aircraft repairs and reject out of time assignments and over time. and cathay pacific cancels more flights. kong in afrom hong moment. this is bloomberg. ♪ >> singapore is revising down there growth forecast almost zero as the global downturn deepens and the trade war goes on. the ministry of trade and industry sees the economy expanding between nothing to 1% down from previous projections 2.5.1.5 to the u.s. and china are sparring over trade. and the spat between japan