is very valuable. emily: bloomberg's stephen engle reporting from china. coming up, one of the world's biggest cybersecurity companies has ties to russian intelligence services that go deeper than previously known. we will bring you a bloomberg businessweek report. this is bloomberg. ♪ >> it is 11:29 a.m. in hong kong . i am paul allen with the first word news. 31 as thes named july date for an extraordinary shareholder meeting. that will happen within three months, the egm. shareholders who have exercised voting rights, toshiba is still talking to potential buyers about eight/chip memory unit. softbank is hiring a media executive for a $100 billion vision fund. andn will join the fund moved from new york to their headquarters in california. they are trying to get control of sprint. softbank is in talks to invest in chinese bank rentals. on high denomination notes late last year has claimed to have cost to the country more than one million jobs. says 1.5 million people lost worth from january to april. the ceo says most of the losses were among young people in both the organi

. betty: sort of towing both lines. thank you so much, stephen engle on the new bond connect and handover commemoration over the weekend. we will have more analysis on the bond connects later. we will be joined by pine bridge's andrew lau. markets, weberg have this person. staying in the u.s., let's get it preview of what to look out for. what to watch. ramy: even though it is a shortened week we have a lot of stuff. let's look at monday with regards to the equities on the radar. social media, something that has gone with our viewers in australia. patent toa grant or start peer-to-peer payments. this will be interesting in terms of how it impacts the big four banks. the $1 billionst or so. potential impacts with trading. we will be seeing what happens with facebook shares when those start trading in the u.s. -- wynn, macau, this is because of macau gambling revenue. #btv 7382. on the right-hand side, the green bar chart is 29.9% in terms of a rise in gaming revenue. that is the highest since 2014, but the estimate was found 30% rise. a lot of people are optimistic this will keep

new access to the mainland. it is a huge market. our chief north asia correspondent stephen engle is at the exchange. it is official? >> it is official. it has gone live. it is up to everyone else. you will hear drills and banging because they are deconstructing the ceremony here. gong wass when the banged and the connect went live heading north and to china. no timetable for southbound, but it is an inevitability. they are saying the market conditions favor going northbound for foreign investors only going into china. nearly $10 trillion bond market, is in the hands of foreigners, so lots of potential. a lot of risk as well, questions about transparency and china's corporate on market and the issuing of ratings, whether they are h or representation of the risk. controls are capital as well, so it is a baby step, a big baby step from the beginning of the further integration of the bond markets globally and china, the third bond market in the world. a few comments coming from dignitaries, the deputy pboc governor was the first to speak in the press conference saying this will build a

hitting the continental u.s. with a nuclear warhead. bloomberg's stephen engle reports. >> north korea announced its hwasong intercontinental ballistic missile is capable of hitting any place in the world. north korea said it tested an icbm, reaching as high as 2000 kilometers in altitude before hitting its intended target in the sea of japan. the north says the icbm "caused no safety harm to neighboring countries." obviouslynouncement intended as a warning to the united states. and icbm is categorized as a guided missile, usually equipped with a nuclear warhead, with a range of no less than 5500 commenters, which is approximately the same distance to alaska pay the west coast of the continental u.s. is as little as 8000 kilometers from north korea. south korea, japan, and the u.s. have strongly condemned the test. mark: for more headlines, let's check in with bloomberg's first word news. emma chandra has more. moscow, russia's president is meeting with china's president. the countries half in strengthening the economic and diplomatic ties in recent years. trade between russia and chin

asia correspondent stephen engle got a look at the festival that features other new retail strategies that integrate online with off-line shopping. stephen: the festivals were the -- where the virtual world meets the physical. some 108 vendors here are selling their wares. the targets are the millennials on their smart phones, buying all kinds of stuff. the festival is in its second year is double the size of last year. it is an off-line showcase for china's entrepreneurs who have online shopsful without crippling the brick-and-mortar overhead. whether it's the latest in design or virtual reality combat, the festival represents the new youth driven consumer economy in china. a quarter of the vendors are those born after 1990. in this melee, the generation gap was all too evident. this 30-year-old knew exactly what he was doing when he started making a portable and professional folding electric guitars. >> this was the only way we could get so many enclosures. we've only existed two years. stephen: how many have you sold? >> about 1000. >> are all your customers in china whe

: that was the head of consumer lending at xiaomi speaking to stephen engle. shery will give us an update. shery: we will get an update from the imf on its world economic outlook. what are the downside risks for the global economy? that is the key question the imf is looking at. one key risk could be china, will it maintain growth momentum , 6.7% last year. we will hear from the imf and what they have to say on their latest update and to discuss this, independent strategy, we will discuss all of that, and what is it mean for developing markets, especially thailand? the secretary general of the eastern economic corridor of thailand will be dissecting what everything means for his economy. all of that, coming up. this is bloomberg. ♪ ♪ shery: a mixed picture across asia-pacific, stocks falling in tokyo, the hang seng rising. a property developer among the day's winners. a record in hong kong. or your weekends as producers meet in st. petersburg. , asian being pressured stocks falling for the first time in 11 days from that 2007 hi. -- high. btv 6542 showing we are still in the ms

violent opposition on the streets. stephen engle is with me now. what a start to be dealing with this. we have qatar, the korean peninsula, so much to be getting on with. we can talk about a number of things. lots to discuss, and of course people taking to the streets in hamburg. welcome to hell. , well, let's roll the video. it is in a traditional leftist heart of hamburg, but there was a march planned and was infiltrated by 1000 masked writers who shouted, all of hamburg hates the police. was originally anti-capitalists, and armed vehicles are patrolling the streets through the night, shops close, larger protests planned today and tomorrow. andce used water cannons pepper spray and many people in hamburg feel under siege as world leaders convene on the city in germany. the common thread among all these issues, not necessarily the protests, but donald trump. was six against one, angela merkel saying the discord is obvious and would be dishonest to paper over the conflict. donald trump comes with one set of agenda items, and others like angela merkel and xi jinping will talk about the

consumer lending told stephen engle that china's fintech pie is big enough. >> over the past few years, we noticed a lot of problems in the industry. this industry needs regulations in place to enforce the activities and behaviors and to make the industry develop in a good way. reporter: is it important to in a fate -- innovate before those innovations stifle? >> it is difficult. innovation sometimes needs more space to innovate. at the same time, if enough players in the market are not self-contained -- reporter: self regulated? >> regulated. the government and regulation rules needs to be in place to make sure everything is fine. reporter: what is the biggest risk to you? >> first, it is risk management. many people have a high debt to income ratio. some of them have trouble to pay back. the other side is financial ties over the past few months. we have seen the cost increase, and squeeze profits. reporter: your chairman has talked about the troubles that xiaomi has had of late, losing a little bit of market share and sales coming down. he said maybe the company grew a little t

chinese economy. also, what is happening -- stephen engle joins us there. >> let's talk about the china markets and the opportunities for foreign companies. we welcome in the ceo from the netherlands. thanks so much again for talking to us. so, what stood out to you as a foreign business person who does business here? i think 13% of your revenue or thereabouts comes from china. what stood out to you? >> the premier is stressing very much the inclusive growth in the west. i mean, china has benefited quite a bit from globalization. the west, also, international trade. but in the west, and the united states, several european countries, the feeling is that the gross globalization has not been beneficial for all parts of population and there is roughly 30% in all countries who feel to be left behind. and those people vote in a particular way. and as we've seen in the u.s. and with brexit but also le pen in france. it is a kind of protectionism. and, china, of course, does not want u.s. to be protection is an want free trade and wto. >> i'll play the devil's advocate. donald trump says they h

correspondent stephen engle says at the moment, profitability come second to market share. >> were going to that maturity where you have ecosystems, and i think how is shaping up is, one alibaba andlongs to another ecosystem belongs to amazon, including payment and content and so on. >> how are you going to win? brady investments going to keep throwing money at it? amazon, $5 billion and counting. when or how does it end? >> the picture here is if you're planning to win by throwing more they, there is no into money in the tech wars we're talking about. is going to be who has more customers and connections. it's gone beyond throwing money. toowing money was a trick make a large sum of money. >> what is your priority right now? >> a large number of users. it's a large number of users and inactions. >> how far down the road is it? >> 2020, nothing before that. overheating is an outcome of overpaying. for $3.1ube was ought billion, it was overheating. when instagram grandma spot for $1 billion, it was overheating. -- when insta grandma was bought for $1 billion. >> but there will be a shakeout,

in the story. asia correspondent stephen engle joins us now. what does the announcement, the confirmation that this was an icbm mean for the larger north korea story? tephen: this is potentially a game changer. we have been waiting to see when they were going to develop an icbm. we had heard they developed engines that were capable all of .eing fitted into icbms it is equipped with a nuclear warhead, and can travel a minimum of 3500 kilometers. this test firing earlier this morning into the sea of japan on the way toward japan with less than 1000 kilometers. the key point was the trajectory as you mentioned and also the altitude. the altitude they are saying pyongyang went as high as 2800 limiters. columbus are's. that could give a range of 6000 kilometers. alaska is 5500 or 6000 pyongyang,away from from north korea. seattle is 8000 kilometers away. the continental u.s. about 10,000. not necessarily that far yet. potentially a game changer, something that tim johnson -- un jong-il and -- kim jong and his generals can beat their chests about. we have seen the tweets from the p

rate of 6.9%, definitely a beat and slightly ahead of estimates, so overall good news. stephen engle is joining us right now. walk us through the details. you have the good news and bad news. just which one the market is reacting to? let's get to the good news. , gdp betterers beat than expected, six point 9%, expecting 6.8% the consensus estimate. actories pumping out goods at faster clip, so industrial production at 7.6%, a full percentage point more than the previous month and the estimate. the factories are doing well. we got a hint of that with export numbers for june better than expected as well. retail sales better than expected, 11%. we were expecting 10.6%. they fasted urban investment just above estimate. why is the market of plotting that? the work conference we had over the weekend with xi jinping helming this closed-door today meeting with a map out financial priorities and containing systemic risks for the next five years, that is taking precedence and what is on everybody's mind. perhaps that's why markets are jittery. perhaps they will see more financial regulation in th

stephen engle got a use -- a look at the taobao maker festival that features other new retail strategies that integrate online with off-line shopping. reporter: the taobao maker festival is where the virtual world meets the physical. someone hundred eight taobao 108 taobaod -- some vendors selling, millennials by all kinds of stuff. the festival, in its second year, is doubled in size of last year's. showcase off-line -- for the online sellers without the crippling brick-and-mortar overhead. whether it is the latest in eye-popping design or body stocking virtual-reality combat, the taobao festival represents the youth driven consumer economy of china. in fact, a quarter of the -- thosere so-called born after 1990. in this melee, the generation gap was evident. knew exactly what he was doing when he started making these portable and professional folding electric guitars. >> this is the only way we could get so many exposures at a certain time. we only existed for two years. reporter: how many have you sold? >> about 1000. reporter: are all your customers in china? >> we sell in

dominate this week's g-20. president trump will meet with his chinese counterparts. let's bring in stephen engle. good to have you on the program. how is this concerned i'd -- icbm test a game changer, that in this standoff between north korea and the americans? that's the big question. i've lived my entire adult life in asia, 27 years. i've seen a number of these kind of redlands from north korea. we to get complacent, sometimes shrug it off, market do as well. it seems a is time, now that they do have the capability with icbm to reach u.s. soil with a potential nuclear warhead, that's a game changer on this table. the threat alone in the eyes of pyongyang's mind is, big are getting chip if you well. the question though, moves on to, does this -- lead to negotiations or does it lead to military conflict?\ that's the end game. north korea saying it will not discuss its nuclear or missile programs unless the united states scraps its threats the pyongyang burress -- perceives from washington. it even talked about sending a frequent gift to the united states in commemoration of the july 4 ind

changing role in the global economy, a topic that stephen engle discussed with several high-profile guests. reporter: what did you take away from the speech? it was almost a carbon copy of previous speeches, saying that china can withstand all of these challenges. they are going to meet their targets. there is not going to be any hard landing. guest: on the domestic side, i think he was sending a very soothing message, but also making it very clear point that in the lead up to the party congress in november, the government is going to do whatever it takes in order to maintain reasonable rose and financial stability. next year is the year to be concerned about because we might see some more forward reforms which could set up unprintable consequences of their own. -- unpredictable consequences of their own. what i found even more interesting was the international aspects because, right at the beginning and throughout the speech, there was a notion of china taking on the thele of globalization, notion of free and fair trade, free flows of capital. all of these permeated his speech. seeink whe

regulators battle shadow banking and the property market. stephen engle joins us from shanghai with more. it is a lot of the same but is there anything different in that they will be tackling? it sounds exciting, doesn't it? the national financial were conference or yeah, conference. i get it mixed up. it is quite important with xi jinping coming. he is going to push forward his priority, containing financial risk. this year could be different because over the past conferences, you have seen the establishment of different regulators. because there has been regulatory arbitrage going on over the last few years a loving riskier products to be introduced, they are looking at consolidating these regulators under one roof in creating the pboc -- an office for coordination where you would put the banking regulators, the securities regulators, and the insurance regulators, under one regulatory office within the pboc to have more focused and anddination and cooperation regulation of the financial sector. that could be one take away as well. keep in mind, the longest-serving central bank gov

space to grow. ofnne: that was the head consumer lending speaking to stephen engle. oil producers meeting in st. petersburg, we get j.p. morgan's view on the energy market. ♪ we are counting your down to the first major market open this morning for you to see downsides when it comes to equities, futures down 120 points right now. this is daybreak asia. i'm yvonne man in hong kong. russia's energy minister said libya and nigeria might join oil opec cuts agreed to buy producers, but only when their own production stabilizes. both are trying to reduce supply. the participation will be's -- be essential. we have more from deceptive and the dean. -- yousef gamal el-din. the secretary-general of opec, mohammed barkindo, just sat down. he is confident, he is optimistic it is working out, but he has described the level of compliance as excellent. once this has taken place, both onshore and offshore so we are pretty sure the rebalancing ,rocess may be at a slower pace but it is on course, and is bound to accelerate because of the compass. >> monday morning things really kick off with the

. he talked about china's changing role in the global economy, a topic stephen engle discuss with several guests. stephen: what did you take away from the premier's speech, almost a carbon copy of previous speeches, saying china can withstand all of these challenges, they will meet their targets, there will not be any hard landing? >> on the domestic side, i think china was sending a very soothing message but also a very clear point the lead up to the party congress in november, to maintain financial stability, they would do whatever it takes. next year is the year to be concerned about because we might see some unpredictable consequences and some of the problems could come to a head, but this year is secure. what is even more interesting about the speech is the international aspect because if the beginning and throughout, there was a notion of taking on the globalization mantle. a notion of free flows of capital. all of these have permeated his speech, whether indeed or not we will see them, in principle china wants to take on this notion that it is promoting globalization and it

from chinese authorities. stephen engle, bloomberg news, shanghai. the shanghai composite closing down at 1.4% in the session. a lot of questions over whether better than expected growth will give pboc more leeway for deleveraging. it is time for the bloomberg business flash. procter & gamble faces a proxy fight from nelson peltz's try and -- trian fund management over what it calls the consumer product company's slow-moving and insular culture. the buyout firm kkr is preparing for the future, promoting two executives in the 40's to the new roles of copresident and co-chief operating officers. henry kravitz and george roberts will remain as co-ceo's and cochairman. credit suisse is working on a new strategic three-year plan that will focus investing on its most operable areas. according to a memo seen by bloomberg, the swiss bank moved up a strategy meeting to june from the usual time of late august. credit suisse says the new plan should drive the back valuation higher after 2018. that is your business flash. really interesting that credit suisse is signaling the euro of cost cutting

at a time of great uncertainty. from the northeastern chinese city of dalien, i'm stephen engle. thanks for watching. ♪ ♪ jonathan: from new york city, this is jonathan ferro. with 30 minutes dedicated to fixed-income, this is bloomberg real yield. ♪ president draghi's dovish words, but his words fall on deaf ears elsewhere. reflation trade struggles to buyers. the tenure tips auction draws the lowest number in five years and counting down to the fed's , decision. long-run miss of its inflation goal undermining for another rate hike. we begin with a big issue, a dovish draghi doing his best to push back against markets. mario

. from the northeastern chinese city of dalien, i'm stephen engle. ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with politics. in an interview with "new york times" wednesday, president trump revealed he would not have named jeff sessions as attorney general if yet known he would have recused himself from the russian investigation. on thursday, sessions announced he would remain in his post as attorney general as long as appropriate. today marks six months since president trump took office. joining me from washington, robert costa is a national political reporter for "the

convenience store. so it cafebe a case-by-case basis.shr concept. stephen engle got a look at the festivalused how about taobao festival that features other new retail strategies that integrate online with off-line shopping. stephen: the festivals were the virtual world meets the physical. 108 vendors here are selling their wares. the targets are the millennial's -- millennials in china on their smart phones, buying all kinds of stuff. the festival is in its second year, and double the size of last year, and it is an off-line showcase for online shops without the crippling brick-and-mortar overhead. whether it's the latest in eye-popping design or virtual reality combat, the festival represents the new youth driven consumer economy in china. in fact a quarter of the vendors , here are those born after 1990. in this melee the generation gap , was evident. >> i have no idea what i just did. stephen this 30-year-old knew : exactly what he was doing when he started making a portable professional electric guitar. >> this was the only way we could get so many exposures. we have only exi

a topic stephen engle discussed with several high-profile guests. away fromd you take his speech? they were saying china will meet the challenges and meet their targets. sending a sitting message. you saying the government will do whatever it takes for financial stability. next year, we might see moves which could set off unpredictable consequences. i think some of the problems may start coming to a head. this year, i think it is secure. what i found interesting was the international aspects. there was the notion of china taking on the mantle of globalization. the notion of free and fair trade. all of these permeated his speech. when you take on this notion it is promoting globalization and all for it. scarlet: a number of leading c.e.o.'s also spoke with bloomberg. the newed to say spending will create about 1000 new jobs. he told matt miller b.m.w. considers the united states it's second home. being successful in the united states is part of our strategy. matt: you export $10 billion of cars, more than any other manufacturer, including four or g.m.. have you explained this to p

of dalien, i am'm stephen engle. -- i'm stephen engle. ♪ francine: he's a rare breed of chief executive, who dedicated his entire executive life to one company. he was a young business graduate and he joined siemens in 1980, moving up the ranks and around the world for a company described as the flagship of the german economy. siemens truly powers modern life, making everything from turbines and cameras to ovens and factories. joining me, chief executive officer joe