tencent is handing out beach chairs as a special dividend. it is another move towards becoming a more focused operator. it says it is confident of winning approval to release its next major games soon. >> elon musk and twitter are heading down a risky path by fire and half of the social networks employees. tiktok is working on solutions to address u.s. security concerns over user data. >> we are going to move the data we store into oracle infrastructure. we are going to have new and improved data absence protocols such that only an entity of u.s. residents both have access. >> softbank is looking to reduce its holdings in ptm. --paytm. >> these are the stocks that we will be watching when trade opens in japan. we are watching tokyo electron, and some co-. -- some co-corporation. >> coming up, oliver baete joins us live for the global outlook on the insurance sector. the open market in tokyo is next. this is bloomberg. ♪ >> this is daybreak asia coming to you live from the final day of the new economy forum. we have a packed day ahead. this

for tencent, [indiscernible] tencent has yet to fully unleash the money making power of that. would want tencent to make more money. rishaad: what more do we know about these possible job losses as well? >> earlier this year, tencent kicked off companywide layoffs. the aim is to cut costs. in the second quarter, there is a major employee number drop. i think the latest round will be in smaller scale. it will not be a huge deal. rishaad: thank you so much for joining us. about six minutes ago we had the start of the indian trading day. a slight move to the downside here. that is a look at those indian markets. we have a lot more ahead. this is bloomberg. ♪ rishaad: that is the scene of the new economy forum. we have guests that will be joining us from there. some breaking news. ftx digital markets filing for chapter 15. it is similar to chapter 11. it gives you the ability to have a foreign company here as well. it deals with insolvency cases involving more than one country. ftx its international as we know. it has had its assets frozen in the bahamas where it is based. what

tencent releasing about 20 billion dollars worth of holdings and shares in meituan, investors concerned about further divestment. and warnings from the bank of china that inflation could pose a challenge. the spanish ibex currently up .2%, in the u.k., the ftse 100 is flat ahead of the statement and analysis from the obr as to the trajectory of this beleaguered u.k. economy. let's see how things are playing out across asset. we mentioned in the u.s. dollar, the losses across equities yesterday but futures suggesting you are back to a point where you could see gains, pointing up .4%. interesting to hear pushback from the fed officials, mary daly saying a pause isn't on the table. goldman sachs raising their terminal rate to 5.2%. the pound currently at 1.19, watching the back of the autumn statement. the 10-year 3.68 in the u.s., brent $92 a barrel down .2% as the focus switches from geopolitics back to the demand question. the selloff in technology linked to what we saw from tencent and its holdings in mei tuan, investors concerned that tencent is going to further divest, they are under

i want to talk about not so much tencent, but what tencent is doing in divesting of their stakes. last year it was jd.com. this week it was meituan. how does that change operational synergies, and i am borrowing a phrase from our consulting friends. does that change how these companies operate and compete against each other now? catherine: if we can take a step back, tencent and meituan, they are still in a binding contract that will last through 2023 when it comes to the exchange of services, as well as other infrastructure between the two companies. so, in the next 12, 13 months we are not going to see many changes. bear in mind, meituan right now is one of the more established investments tencent has. an meituan, where it is, it is in a sweet spot to -- the additional push from tencent will not actually have a big impact on the company in the future. yvonne: time to spread your wings and fly. catherine lim, thank you so much, joining us on the latest for all things china tech. coming up, the liquidator who oversaw enron's collapse is now looking into the wreckage of ftx and say

what are we expecting when it comes to tencent? >> tencent is going to report earnings wednesday. investors are trying to see whether the downturn will continue as the company reported their first revenue decline last quarter. take a look at the share price. it dropped to the lowest level in five years. analysts lowered their price targets. they cut the target price by 20% saying domestic and international gaming businesses are under pressure. although there trying to adopt more video content for advertisement businesses, it seems the catalysts are limited. >> what are the prospects for share buybacks? >> multiple reports point out that tencent may sell some of its stake in listed companies in order to fund the share buyback and signal new growth drivers. although tencent said the reports are not true, speculations are mounting because the company has long been expected to reduce its equity portfolio in order to adjust beijing's anti-monopoly campaign. shery: what about alibaba? how much are we expecting singles' day to help? >> for alibaba, it may reported a 4% jump in revenue th

tencent got its first gains approval since china started reissuing licenses again this year. any indication officials are looking to wrap up their investigations into ant would be a win for the sector in general. haidi: we see indications, and prosperity is a key theme for the government. annabelle: that's right, especially when you look at the moves from jd. we understand jd is cutting its salaries for its top managers by about 10% to 20%. what is important is the money the company saves from those salary cuts, part of that will go into an employee benefits fund and that's worth around $1.4 billion. the founder of jd.com will be taking money out of his own pocket to put toward this as well. that is what sources told us. a fund will be established to help staff get interest-free home loans. that timing is quite interesting because we just had president she -- president xi reiterate how important this drive is, about redistributing wealth more widely in the population to bring down huge inequality that does exist and mainland china. we have seen other companies joining this. o

tencent up 11% baidu up 7.5%. talk of reopening in china as you look at the moves in european luxury makers hermes up 3.6% kering is up 4.5 lvmh is also higher. >>> let's get a check of the morning's top stories with silvana henao. good morning >> seema, good morning president biden is threatening to pursue higher taxes on oil company profits if industry leaders don't reduce gas prices. speaking at the white house yesterday, the president continued the criticism that oil companies have made record high profits as consumers struggle. any new proposed taxes could face opposition in congress especially if republicans expand control after the mid-term elections next week. the president stressed he is a capitalist, but these companies have benefitted from the war in ukraine and subsequent subsidies on russian oil >> it is time they meet their responsibilities to the country. give the american people a break and still do very well the american people are going to judge who with is standing with them and who is only look

and, of course, the hang seng is down 1.6 let's dive into detail the picture is bleak overall tencent down 1.1 alibaba is down 1.4. so we are seeing somewhat of a bull back. nothing extreme, but still the pull back is sizable in more than 1% or 2% here as arabile and i have been talking about, no one knows how long the demonstrations are going on for and what it means for the regulatory picture in china and how they have been focused on the developments with the tech companies. >>> turning to the currency. it is one of weakness. onshore dollar mmb is .40% weaker against the dollar and offshore is .15% weaker. the story is one of continued weakness we are 7 which was the question over what the pboc can do to restore stability. we are seeing vreverse impacts. this is face naturing because look at the chart. this is the chart of brent we are trading at $81. we are almost back to where we were at the beginning of the year below the levels we got to during the start of the russian invasion of ukraine. it tells you about the demand picture and how it is weighing on sentiment and commodities

also earnings coming through from china tech giant tencent. revenue has missed and they have been struggling with revenue. it fell in the prior quarter, however net income is a beat coming in at 39.4 billion yuan. a pretty hefty beat. online advertising sales also coming stronger than expected despite weakness throughout the rest of the industry. tencent also offering up a special dividend. they are doing so through may 20 -- metuan shares. it is day two of the new economy forum in singapore. among the topics, geopolitical tensions, record inflation, and monetary tightening. one of the other macro stories has been commodities. the war in ukraine has hit we took, fertilizers, and natural gas. let's get with francine lacqua who is in the bloomberg new economy forum in singapore with our next guest. francine: thank you. i am here with rohitesh dhawan, chief executive officer at the international council on mining and metals. there are three challenges for you. we need to make sure we have enough resources for the transition but it is also about d

, the highest level since the company listed them back in september that tracks a 30% gain in tencent's positive receipts yesterday after the chinese streaming service reported better than expected third quarter results on an increase on ad sales and a number of paid users. 29% gain in hong kong. >>> and advance auto parts sales are slumming they sold cheaper branlsd. aap shares down 13%. >>> and shares of carnival are tumbling after the cruise line announced plans to raise more debt carnival will launch a sale of $1 billion in convertible notes that are due in 2027 shares of rivals, royal caribbean and norwegian also falling on that news carnival sres wnhado 11%, 12% premarket. "worldwide exchange" is back after this trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the

we are watching tencent, alibaba. reporting quarterly financials this week. many consumers are relying on credit cards and savings to keep up with inflation showing few signs of slowing. and that is your week ahead briefing for this week. investors will be watching the key leaders meeting between xi and biden. shery: our next guest is cautious on china. joining us now is xi qiao, the financial advisor at ubs. good to have you back. does the fact that we are now finally getting the sweeping package to say but the real estate sector give you more optimism about china? xi qiao: it is a positive note. but we are still very cautious on china at this point especially where president xi's current third term may lead investors to price in a greater continuation of the zero covid strategy, less support for the private sector and we still have a lot to watch on any type of progress of the u.s. and china tensions. shery: when you are being more cautious, how do you stay defensive? xi qiao: if you are already invested in china or any type of chinese equities, it would be

we have alibaba and tencent reporting. there will be a flurry of news. the direction of travel on covid zero is positive for markets, but markets are hungry for news. if there is silence for three weeks and nothing happens on covid zero, that could send markets lower again. francine: are you expecting a stop and start to normal life? some say it could take a year to go back to normal, and in the meantime how will the pboc and other regulators fill that space? sofia: covid zero cannot be removed overnight. it took months. what happened was the chief executive, when he started his administration, that is on things changed. china has a new leadership in place after the party congress. there is momentum at the top for things to get going. i think any signals on messaging, rhetoric is incredibly important in china. watch what state media says. if they say covid is not so scary and try to change the messaging to change sentiment on the ground, then that could be a positive sign. it will take a long time. a full reopen in china, one year might be on the pessimi

it posted a profit boosted on tax benefits, shares of come under pressure as tencent said it will distribute to its shareholders. haidi: these are the stocks we are watching. five minutes time in australia, the australian newspaper says that the agent related stocks -- agent related stocks are posting the third weekly loss. we are looking at the likes of orton energy as well. coming up, why the monetary policy lacks potency despite the latest rrr cut. the former policy board member talks with us about the chances of elevated inflation spurring any change from the boj. ♪

we have moves from tencent and alibaba, moving that index for its best week since inception. we are also seeing moves in the offshore currency, but this is all based on what happens if we actually get some concrete confirmation of a reopening path which was quashed earlier this week and it is not just assets we are seeing in hong kong and china. it is the entire reopening basket. the likes of cosmetic players in south korea are rallying higher today, all of the airlines based on this unsubstantiated rumor. we had a quick look at that chart in terms of the chinese stocks listed in hong kong, the hsc i index. it is now on track for its best week since 2011, all driven by rumors, not confirmed. a lot of analysts out there saying you do not want to be short on this market. we spoke to a guest earlier who was saying it is dangerous to not be in this game and you can see a 50% pump in stocks once we get confirmation of a reopening. united first partners is saying is it is -- saying it is a tug-of-war between the bulls and the bears until we get confirmation of a reopening. manus: y

tech names coming under pressure with jd.com and tencent and alibaba under focus today. the red spillage has knock-on effects. japan is down .40% we focus on the weakness of the yen. over here in europe, it is similar. a lot of red ftse 100 down .23% minors in energy and any company with commodities exposure is under selling pressure dax is down 1% also volkswagen came out and said production in one of the chinese factories has been disrupted due to the flare up of covid. this is the theme coming up. cac in france is down 1% watch out for the luxury names with hermes and lvmh with a lot of exposure to china as well today is definitely a risk-off session of what is happening in china. seema. >> joumanna, on that note, to our top story. unrest in cities across china amid countries over increasing covid lockdowns and restrictions in an unusual show of defidefia democnstrators are calling out for xi jinping to step down. we have eunice yoon with more. >> reporter: it is rare to see them in so many different cities, seema. the security is extra tight today here in beijing and

tencent, alibaba, all of them rallying at least 6%. it's not just attack it, we also have financial firms rallying as well. a lot of volume has been coming to these exchanges on this rally, perhaps that why you see hk exchange rallying some 4.6%. so yes, a big rally, but it is coming from extreme lows. joining us is mliv strategist mark cudmore. what do you make of this euphoria in china shares? mark: i believe it. i know a lot of people are suspicious but that is part of the reason why i think we've seen a massive turning point a couple of weeks ago. pessimism was so deeply entrenched. valuations have not been seen in these assets inwardly, hong kong stocks the cheapest ever at the end of october after the worst month in many years. this is a market that wasn't discounted, very pessimistic and we've had a number of positive pivots. we have the fact that xi jinping is focused on the economy, reopening, rescuing the property sector, and then to cap it off, the big narrative the last few years is china isolationism, pulling themselves ou

if you compare this to tencent in the last three quarters, minus 2% minus 3% and then 0% just to put this in context, alibaba's $100 billion revenue business and $100 billion consumer business. there are few businesses in the world with that size and scale a singles day was flat that was $85 billion that is two times amazon holiday season sales the company, i would say with jd.com, the company is certainly going to witness fastering growth than alibaba. i would expect growth at 15% over the next three years. the company sales are not growing as fast, but i have not looked at recent earnings results. the net services line is growing faster i think my focus here is the free cash flow of both businesses which is how to the value a business >> so, sid, we have a few moments left here. let's take us through. the opportunity that has happened over the last year or year and a half in chinese tech stocks getting beaten up has created opportunities. what are your favorite picks what is the most attractive in china tech >> certainly the stock market is expensive. i police of i prefer alibaba t

world of war craft the deal could not be reached and netease is the largest company in china behind tencent. >>> change could be happening at tesla and twitter. according to testimony from tesla board member, ceo musk in the last few months identified someone as a potential successor, but falling short of naming who this as musk said he will reduce time at twitter and find a new ceo to run the company, but not right now. >>> more fallout over taylor swift's ticket fiasco. activists and lawmakers are renewing calls to split ticketmaster and live nation some calling for the justice department to get involved live nation shares are down 40% this year. >> henao silvana henao with the headlines. thank you. >>> the uk government looking to put liz truss and her failed fiscal policies in the rear-view mirror today we have arabile gumede with more arabile, this will replace the mini budget we saw from truss. how optimistic are britons over what this will lead to >> reporter: they certainly aren't as optimistic from some of the words we heard. i got to speak to a treasury spokesperson not long ago,

on top of cutting on waste, you also get a tencent discount on the drinks with the red cup and a 25 bonus stars reward. that is an incentive. reggie: i need to bring it in after and then i get $.10 off? kumasi: oh. reggie: you know they are not going to refill that cup. they stopped doing that. kumasi: they say just reuse it on your own. we still have hours. reggie: we still have it. jobina: you still have yours from a year? reggie: at least two, maybe three. kumasi: i like that cup. it brings me joy. reggie: it does. kumasi: they had the paper ones that came out a few weeks back. friend was going to get us some and i was like, i want that one. i was like -- he was like, you want me to ask them? and i was like, why can't i get the one i want? he was looking at me like i'm getting it and you want me to ask them? i am excited about the plastic one. jobina: got that worked out. reggie: i can get it for you too , lisa. i am going to go on a run. lisa: so nice. imagining that, perhaps an extra one. it is so cold out there. we will start to warm up after 8:00. consent to get set -- get sent to

tencent as well as alibaba i'm happy to bring in the head of international from crane shares great to have you back with us again on "street signs." so much to talk about today. i want to start out with the g20. the bilateral meeting with president biden and president xi people are saying this is not ushering in a new era of relations, but putting a floor on the state of the relationship right now. what is your perception and how significant do you think this bilateral meeting was? it did go on for three hours >> i think the fact the two most influence al ing leaders in thed have met in person and like you said met for three hours the topics discussed at the meeting are all front and center for each of the countries. this marks a significant step to reconfirm the two countries on the constructive side to build a good ripaelationship among themselves regarding trade and geopolitical issues and how they have a common agreements or common recommendations on foreign policies most importantly to me, from this meeting, they have followups for the senior level officials to meet at the next s

. >>> the chinese tech stocks stretch into a second day despite all of this, jd.com, baidu, tencent holdings, and meituan, this despite the foreign minister saying, quote, it's not a ware of the situation, just to pour more confusion on this. it comes after a long bear run on hong kong and chinese markets as you see there joining me now is miarko papich. the markets and chinese stocks arguably got a huge boost because of these unconfirmed reports they were looking to loosen restrictions. can you tell us whether or not china is an investable market given all this confusion >> i think in the short term, there's a trade setting up for chinese equities the reason for that is multi-faceted. first of all, the global bond selloff is likely coming to an end. china is very much a tech-heavy market if there isn't like a reopening committee. our sources have been told there was a meeting and it discussed putting together a reopening plan that may happen as quickly as march and the third issue is that we do have a new government in china that will be in place in march, so it does make sense for presiden

tencent, 10 is.7%. yd.com also having -- jd.com also having a very solid day. will let's bring in our traders to tackle all of the breaking news, scott redler and sarge guilfoyle. sarge, we'll get to, certainly, inflation which appears to be cooling in just a moment, but give me your sense of these headlines out of poland and what they mean to an investor. >> well, i mean, it makes most a little more cautious. we have a couple of signals technically in the marketplace that would allow investors and traders to be a little more aggressive. you see something like this, it makes you pause. tomorrow could be a lousy day if things don't go right overnight. i mean defense contractors ran a little bit. they're all coming in now pretty much. only northrup grumman is still up significantly except for a couple of drone manufacturers. that tells me maybe there won't be any if further military action, there'll be some harsh words, but there won't be a response. taking that, i think we could proceed as normal, but i would be afraid to commit too much capital on such a bet. l

pay cash tencent discount. thank you for joining us by what? and after the election day we have had at least the weather is sunny and gorgeous. have a marvelous day. we'll meet you back here f next ♪ we're gonna have a real good time ♪ ♪ feel good time ♪ ♪ spreading love and joy and laughter all over the place ♪ ♪ we're gonna have a real good time ♪ ♪ feel good time ♪ ♪ nothing's gonna take this good day smile from my face ♪ ♪ oh, yeah ♪ ♪ we're gonna have a good time ♪ ♪ we're gonna have a good time ♪ ♪ it will be so legendary ♪ ♪ sherri's got you feeling good ♪ >> announcer: and now your host, sherri shepherd! [cheers and applause]

if the big tech companies such as tencent and alibaba are starting to do better, if china is doing more to support property and generally coming out of the covid zero situation, that that is good for asia in general. there will be some bright spots, but here's going to be difficult. >> advisors overseeing the ftx bankruptcy have a long list of allegations against former leadership and they are pulling no punches. >> just to give some context, this is basically the latest point in the crisis. this is filing into a bankruptcy court and it's coming from the man who is now in charge of cleaning up the mess. it is the acting ceo who also oversaw the liquidation of enron so he knows what he's talking about when he says we are seeing a bit of a crisis. in terms of the allegations against ftx, they are a long list. firstly, software was used to conceal the misappropriation of customer funds. you can add to that that corporate funds of ftx were used to buy personal items for employees including homes. issues around security that would include a single unsecured email that was used to produce pri

haidi: tencent is in focus with earnings. a bit of optimism that the next pivot might be on tech. david: hopefully so. the uncertainty when it comes to a head for example. in terms of what to expect, much of what we saw in the first quarter was the first revenue decline. more modest, but the stock is trading more than modest. we are trading at two standard deviations below the mean. is there value? if we are trading at 18 times, that's a level we pretty much have not seen since this became a public company. back to you. shery: a very busy day when it comes to tech news. tensions, perfect timing for the new economy forum. tough choices for the u.s. and nato. haidi: we're getting those insights when it comes to what next after this missile landed. this is bloomberg. ♪ at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. david:

in china, tencent on disappointing earnings by disney that can be contributed to rising streaming costs. we are watching property shares. china expanding a key support program to support developers, crypto related shares. of course, speculation on mother or not the deal will go through. keep an eye on some of those names across china. coming up next, the latest from battleground states as u.s. polls start to close. this is bloomberg. ♪ shery: results are trickling in for key senate, house and state races across the u.s.. let's turn to emily wilkins. what are you seeing in terms of some results and potential indications of the significance and control of congress? reporter: we have a close eye on a number of races. several in virginia. these are house races. democrats, whether or not they're able to survive can be a bellwether for the rest of the night. with that will look like for republicans, jennifer wexton is there. usually that would be considered a safe district for democrats. republicans in close races in virginia and have the venue. if we're going to be seen in any sort of red

shares have come under pressure after tencent says it will distribute $20 billion worth to its shareholders. china evergrande group has one more time to work on along we waited -- long-awaited restructuring plan after a case was adjourned. the high court says that proceedings will resume next month. evergrande is one of the most indebted property developers and its restructuring would be china's biggest impact. and twitter is hiring, according to slides from elon musk. the first slides said the words, we are recruiting, with no further details. musk also says he sees parts of twitter having more than one hour -- more than one billion users in 18 months. rishaad: let's look at what is going on in a tale of two industry groups, the first looking at some of these casinos as you get to singapore and trader shares are down by 1.7%. we look at galaxy, when macau, and mgm, all moving up and -- the license application rejected and that subsidiary down there in terms of singapore. we have got these reopened stocks, one of those companies being affected by the culmination of what the fcc has been loo

agreement could not be reached netease is behind tencent in china. >>> meantime, the healthcare sector may not be the first place you think of for dividend opportunities, but do you still go hunting for the yield in the sector dom chu has the sectornomics >> dividend yield for that healthcare sector overall. many are the mega cap names we know health care this time around this year has been an out performer versus the broader market look at the healthcare dindustry it is down 5% versus 17 for the broader s&p 500. that gap has gotten wider as the year progressed. there has been more out performance in health care where you can find the dividend yields, we decided to run a screen for the 64 components overall. 64 stocks on the s&p 500 with a dividend yield of 2.5% if you take 64 stocks and put the screens on there, you get 7 names that pass the screen as for what those seven names are? here are the top ones. i can't put them all on one screen look at abbvie positive year to date returns. gilead 3.5% return. bristol myers and same with merck and amgen. these are the top five that are posi