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

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

economy, a topic stephen engle discuss with several guests. stephen: what did you take away from the premier's speech, claiming china can withstand all of these challenges, they will meet their targets, there will not be any hard landing? eswar: china was sending a very soothing message but also a very clear point the lead up to the party congress in november, to make inroads with financial stability. next year is the year to be concerned about because we might see some unpredictable consequences, and it could come to a head, but this year is ecure. what is even more interesting about the speech is the international aspect because if the beginning and throughout, there was a motion of taking on the globalization mantle. there was the 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 motion, promoting globalization nd it is all for it. scarlet: a number of leading ceo's also spoke with bloomberg this week your he must begin with bmw's chairman. he visited the u.s. to announce a major spending

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

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

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

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

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

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