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tv   Bloomberg Markets Asia  Bloomberg  July 24, 2017 9:00pm-10:00pm EDT

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11:00.s >> this is bloomberg markets asia. ♪ --di: asia-pacific markets the yen is halting -- holding five straight games -- days. saudi arabia --
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haidi: his vision for korea. seeking to create much-needed jobs. now says ite world is controlled by charities. a major shareholder has dropped out of sight. news right group -- growth on better exports. you this better budget that will be fleshing out. mentioned that 2% target. just extrapolate that from 3%. have a look at markets right now. has the market ended or are we
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about -- when you look at what happened on wall street , flatght, look at asia for a second straight day. the momentum that has actually been built in, still very much intact. there is a lot on this chart we have right here. let me bring up the panel for you to give you a sense of what it is looking like. we were almost worried, do we get below 40 on the rsi? usually that is a signal that it is about to turn. in a lot of ways, you look at this chart. it does seem high. it is very much alive, kicking, and well. is all about perspective. it is only been -- has only been about a week. in the meantime, we get another record high for the nasdaq.
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thes weak when it comes to tech earnings. still disappointing investors falling in the after-hours session. we are about 30 minutes away from the open in china, hong kong. a big week for earnings created we have the fed as well going on at the same time. given those drivers, we have quite an number of potential factors that could play. we are seeing some momentum, especially for stocks in australia and southeast asia. updo not -- we do have this 1/10 of 1%. we do have speculators turning the most bearish.
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we do have a rise 1/10 of 1%. the yen is falling about a 10th of a percent. it is followed by the swiss franc and the aussie dollar. have the yuan snapping. we have that economic policy update from the ministration. i am just swinging here just marginally lower. korea, there is an interesting theme at play. their advance remains unbroken for a ninth straight day. it is the strongest level since october. this is encouragement for president moons -- moon's support. most for any -- since 2005.
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not everyone is optimistic. they are being cautious on this rally. they do not want to overlook the earning score potential. speaking of earnings, we did have high next meeting -- it is falling by 1%. stemcentrx electronics is leading a drop down after completing the second round of a share buyback. we take a look at the readers, we do have samsung by a gaining by 1.5 points this morning. seen, despitey that lost we saw for that quarter. we are seeing some -- the cost kospi swinging.
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david: that was your market story. let's see if we get more momentum coming through. the other thing we have been tracking is jared kushner saying he did not have any improper contact with russian officials. that story and other news. david, jared kushner has denied any improper contact with russian officials during the presidential campaign. the senior white house advisers spent hours answering questions behind closed doors. he reaffirmed his stance that he did not act with impropriety during the campaign or transition period. >> i did not collude with russia, nor do i know of anyone else in the campaign who did so. . had no improper contacts
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i have not relied on russian -- forre my businesses my businesses. i've been fully transparent in providing all requested information. rose and the promised new export cuts. -- will be limited to 6.6 million barrels a day. it is not acting alone. other participants -- it will take time to push prices higher. >> we are ready to review this. -- keyck question that question that should be asked is should this happen now or at a later date when we have more details on how the market is performing? at this point, we have discussed and decided to recommend that
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all the ministers keep this option on the table. bank made $350 billion on its balance sheet. the so-called project trending went -- will go live in september of next year. that amount is equivalent to almost 20% of their balance sheet. -- it takesp has concern about its structure and financing. , one based in new york and the other -- 45%, the restt held by an ally holding company. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries.
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this is bloomberg. president has released his vision for korea. putting fairness before growth. he is also pledging to create much-needed jobs for young people. kathleen hays joins us now. it sounds quite idealistic. kathleen: we know that the theident has already gotten legislature to agree with him on adding another $10 billion to the korean budget. that is a big part of what he intends to do. thes trying to shift composition of growth, how growth is created in south korea, who benefit from it away from export growth. building wealth for many koreans, but not enough.
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he wants to spread that out. he wants to do this by creating more income growth. he will do that by creating more jobs, many within the government. some of the key goals and plans in the five year outlook from a boost minimum wage over the five years by 30%. 16%as always put through a wage increase. the government will do a lot of it, public spending to create public-sector jobs as well. taxes on the big corporations and raises more money to support. to support gdpd in year and exports will still be a big part of that. the boost and consumption and income through the government is important as well.
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public spending is expected to rise faster than national gdp growth. they can see what a big weight is being put on this. 10,001 -- 10,000 won. the younger generation is having a tough time in south korea. you can see the white bar on the far right-hand side. unemployment. -- is 20 tow bar 29-year-old. that thanrse for during the u.s. recession recently. higher taxes on corporations on the superrich, tighter regulations, and he will be , theng with 14 leaders
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biggest companies in south korea. one is a noodle maker, where he likes what they are doing with wages and prices. he wants to get everybody on board. just to shift the conversation to japan. two meetings ago, it set a little bit of light on this exit strategy. kathleen: this is important. meeting last week or they pushed their inflation target date out the year. the fact that they were discussing it, some said it would be bad -- good for the bank of japan. early toid it was too start discussing it because we are so far away from it, because it is so way -- so far away from its target.
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what you will see is wages. this is a long sweep of history, back into the early 1990's when the property bubble burst. the far right-hand side, you can see how their wages have risen. they are stuck in that little band. but a lot of people in japan would like to see is a stronger economy higher -- economy. there was frustration about that last week. this is for the month of june. .he core cpi is study a little lower if you take out the energy prices. it is not rising yet. we talk about it all the time. last half empty or half full? it is staying where it is as they wait for it to move up a little faster in the month ahead. david: monday through thursday
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it is always half rule. -- full. the battle of one billion identities. the applications for the government and tech companies. the optimists are back but for how long? security is next. this is bloomberg. ♪
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promisedudi arabia has deep cuts to its crude exports. they're tapping the brakes when it comes to drilling. will these efforts breached that mark? our next guest from allianz securities joining us.
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this has been the issue all along, since we had the november -- havesituation where you them undermine any efforts and progress they make to try to adjust the supply side of that imbalance. is that why oil has had such a difficult time reaching 50? you have these comments from the biggest factor -- fracker. >> at the end of the day, having oil in the range is a good thing for economies. downside.n the trying to push for 50, we need more events to push it through that level. haidi: i demand or supply? >> supply-side disruption. a lot of people feel that the
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infantry draws in the state will help push prices higher. opec's is cutting back on supply would help push prices higher. itself wouldin suggest that this range we have been seeing will stay for some time. updateit was a status kind of meeting. were you expecting more in terms of some of these countries? >> no. when i see what nigeria is doing and what they said, i think they want to support the opec. and i see with libya nigeria, what nigeria is also doing, think that also supports the cause. opec really needs to be able to show the market that the supply cuts will actually work. haidi: then you can do deeper cuts. >> at the right times, yes.
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it has come under a lot of pressure. they will come out with more. i do not think they need to. haidi: you have a situation where prices, market participation -- that last decision to extend the current levels. you do not have reaction at all. >> that is where the market is. the people are preempting what is out there. they are preempting how much supplies are on tap. start-- as the economies to behave the way we want to behave, that will push prices higher. to touchnathan, i want on this. potentially, the new factor in the equation you mentioned might be nigeria. what we have heard from them is that they want to normalize first and then will consider joining the cuts. are we talking about them cap in production?
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i think a little bit. what it does is support the cause of supply cuts. saying coming out and they will support and normalize first makes sense. it is just like libya who wants to normalize as well. they want to see oil prices higher. italy makes sense to do that. i am encouraged, if i am standing on the opec side, that that supports the cause. we see other opec producers coming to the fray. see a deep in oil, that will be supported. oil?: what is a dip in you could argue within this , that almost pushes out perhaps the most expensive
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producers in the u.s.. we are close to seeing this increase peeking out. >> i think we can all present that picture. there is some undermining goals in the west. i think getting to that production of 10 million barrels a day. they are going all out to achieve that. you can see that the u.s., with controlling reserves, they are pulling down a low. islook at what the u.s. doing, they want sustainability and will achieve it. let's see what happens. let's not forget the global economy is picking up. let's not forget where demand is and consumption is. higher than pick up where we are here, and produced a huge amount. if prices can push about this 50
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level, and might be on the back of export economics causing that demand to occur. david: what is more important for you? or -- compliance suggests thatance everyone is in the same boat. david: jonathan, very nice to see you. update out of those talks in st. petersburg. coming up in the program, china saying they want to stabilize the housing sector. this is bloomberg. ♪
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david: just minutes away from the open up markets in hong kong
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and manila. i was hoping to see something dramatic. that will be me lying looking at this. we did manage to close a little bit higher with some gains yesterday. a non-exciting start to the trading session. heard theree, we was a report out of shame on you -- a report. the most important governing body in china looking to stabilize the country's property market. it is a very dramatic headline. it was not ideal in terms of details. have a look at what we are seeing with these names. it is playing into the other story with the hna. property names under pressure as
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we head into the open of markets in hong kong. a bizarre three-way deal to create the biggest property deal in china. -- we had a round of downgrades. they came out with pretty shocking numbers when it comes to what first-half net will look like. it may have dropped the most the 2%. -- almost 50%. the profitunk out of and revenue numbers. they are both downgrading yesterday. stock is up 500%.
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quickly, this is also one that we want to mention. it could be the top automaker in china thanks to its certain line of stop -- line of cars.
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♪ david: we are counting down to the open in china. .t is nice, 28 degrees celsius humidity has become the new humility. well-dressed a individual. beads of sweat rolling down your face in the city. a beautiful day, the. i'm david in glass from bloomberg's asia headquarters. haidi: i'm haidi lun in sydney. , would like to point out that's a pointless ferris wheel. no one ever goes on it. i have been on it twice. you've been talking about how
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boring it is in the markets all day, but to be fair, we have a bit of risk. we are watching for details of land and how the balance sheet unlined is going to happen. we have the opec meeting planting some seeds. also looking ahead to data when it comes to industrial production out of china. let's go to sophie for a look at the shanghai hong kong fair. sophie: and the rest of asia, it has been a fairly optimistic day. when you take a look at what's going on with chinese markets, it's looking pretty much little change. the same with the hang seng. that could perhaps be extending its rally. the stronger dollar, we have the offshore yuan still orbiting 6.75 levels. this morning, we did get a pboc slightly weaker
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this morning. this could draw into the question of what it means when we have the closing of the yuan diverging from the pboc's reference rate. we have citigroup mizuho wondering if this could signal possible intervention for the currency. another currency to point out is what's going on with the aussie dollar, down about a 10th of a percent. we have data out of australia due out tomorrow.this could be another factor that could stall the aussie value. it has been fairly strong so far, but we are set -- seeing the relative strength index in overbought territory for eight straight days.this is the longest stretch since october 2010. in that year in november, that is when we last got the rba hiking rates. buy show heto end
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was going on with sue shares. afterre falling over 7%, they announced a share placement at a discounted price -- price. some pressure for synnex china. c china.china -- suna david: lots of news we are following. there is the open, but there's also bad news for the polish ex parte chief. let's go to haslinda amin. a rising star is being investigated for serious violations of discipline, which is code for corruption. this comes a week after reports that he has been detained, the youngest member of the communist
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party, and was considered a candidate in the promotion of the leadership shuffle this year. -- heh president erdogan flew in from kuwait, and says he supports initiatives to end the crisis. turkey maintains a middle -- military base in qatar, and its closure was on the original list of the saudi led alliance. philippine president duterte it nationd his state of the address to assure the country he's not planning to impose nationwide martial law. army continues to fight islamic militants, prompting some to predict a crackdown across the country. he said that won't happen, but warned extremist and drug traffickers that they face the ultimate punishment. >> in the philippines, it is eye for an eye, a
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tooth for a tooth. must facehe line, you the consequence. that's the only way to instill fear. if you do it, you will die. haslinda: global news 24 hour the day, powered by more than 2700 journalists and analysts in more than 100 20 countries. i'm haslinda amin. this is bloomberg. david: thank you. disclosed --up has these charities have been named. for more on this, we are joined by the asia managing editor. he's here right now. nice to see you. heard several chinese banks have eventually decided
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that if they don't have the appetite to extend further credit, at least for the moment, tell us more. have two threats to this. what is the concerns about finances in general. hna has more than $73 billion. billion of share pledging in publicly traded units are underlying that debt. at least one of the banks we talked to were trying to get their head around this, and while they are doing that, they are trying to trim their exposure. three of the banks have entirely stopped lending to hna this year. the second threat, which is important, is the political tangle. --arly, the political whe winds have shifted.
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there is probably an element of sle banks in particular trying to get in line with where the political when they are blowing. david: exactly. it makes it easy that hna is the poster boy, because they had been the most obvious. they have taken a massive amount of debt. that takes us to the other question. how should we read into them coming out with greater transparency? a product ofmuch the situation they are in right now. they have been around for quite some time. questions around their transparency, the ownership transparency, has been dogging them for years. right now, they are in the crosshairs at home and abroad. you have the ecb looking into the ownership of deutsche bank. that is a big stake for them. that are definitely playing into their decision to come out and be a little more transparent. haidi: when you take a look at the troubles, the scrutiny over hna, other major buyers like
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wanda, what are the implications? pretty obvious when it comes to outbound deal flow from china. >> you are already seeing about acquisitionsp in by chinese companies year on year so far this year. yous certainly feasible, can assume that will continue in the next couple months. we have the party conference coming up later this year. i think everything is kind of on hold until then. you do see some deals like for global logistic properties coming through. that was a big one. but on the whole, it's pretty safe to assume this is going to put a real damper for months to come on outbound deal flow. haidi: right. conversely, we are already starting to see more domestic deals happening as a result of this, may be because of the taking shape over
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the last few days or so. >> i think that is safe to assume. there is money and liquidity here. it has to go somewhere. turned off, the government is putting a clamp down on that. it would be reasonable to expect you see an uptick in domestic deals. deal was triggered in part by the crackdown on debt. they needed to get under -- out from under a mountain of debt, was a way to deal do that. yes, i think companies will be looking more domestically. haidi: they don't really have a choice. thank you. our asian managing editor for finance, in hong kong for us. coming up, the fight for the right to privacy. how india's legal case could change the tech industry. this is bloomberg. ♪
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haidi: a quick check of the latest business flash headlines. shares are falling in seoul after second-quarter profit topped analyst estimates. their memory chips continue to rally. operating profit for the apple supplier jumped $2.7 billion in revenue, to $6.3 billion. a tip shortage has held margins -- should shortage has held margins. david: back here in hong kong, we are looking at shares. sunac is buying parts from wana at an 8.8% discount to the last closing price. the sale is at the low end of
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this indicative price range. according to terms on the deal, that has been seen by bloomberg. benchmarkia's monday, to a record on with reliance contributing most gains. they closed an all-time high on the back of authority phone plan. -- 4g phone planned. aftere bank also surged april june profits came in. david: a massive party in india. we'll have a look. we are getting comments out of the central bank there, weighing in. fastsay it has been too recently. that is according to the central bank. we are getting a little bit of a spike. longer-term view, that's how it looks.
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33 takes you all the way back to -- years. is fairly reliant. the currency has strengthened a little bit too fast recently. let's move things along, we have to talk about india. presenting the high court argument that privacy is not a fundamental right, it is a position being challenged by activists, lawyers, and politicians. that is for a digital system. let's discuss this with our next guest, the executive director of asia cloud computing association. very nice to see you. intriguing. very there's a bit of difference between how you interpret the spirit of the law and how that law is eventually applied.
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if the supreme court in india does eventually say that every citizen has of fundamental right to private, does that necessarily derail the government biometric system? >> i think it does>>. i think right now it's a -- the ad hoce system has been one of the world's largest biometric databases, meant to be did under of india's digital future. process to derail that might actually undermine the foundations of the economy. isid: the core of the issue most people, i myself am guilty of this, i don't mind putting my information on social media. i don't mind giving my fingerprints. but when you talk about the government, everyone is more reluctant. the government in india is obviously in a bind. can it do anything to restore the trust? >> i think it needs to show the
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indian population, as well as the entire world, how much it can protect that information. the questions are not about the social benefits that the indian government can give from the project, but rather what the measures are taken to protect the data, and are you collecting just enough data, or over collecting? those are the questions which the indian population and citizens are working on now. how much information is too much information, where is it going, how is it breached, are you required to inform people, what happens to the data? governments have always been collecting information like for your gender ore your name. those are aggregated information that we accept as public domain
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information. what changes that?at what point does that change from my data to aggregated data? view, you've had over a decade of experience in public policy. you have seen development in the space. what is the line in the sand? >> i think we need to have an informed discussion with the members of the public, what exactly is the baseline that is acceptable to people. you and i are definitely people who are guilty of this violation of giving private information to public and private institutions. we generally are mostly in control of the information we one -- what is the baseline standard would be acceptable for the government to collect and use on transactional basis?
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right now the discussion is for this project and others to work as a sort of know your customer approach towards setting up a bank account, setting up a mobile telephone line, buying a sim card. --se are a sick transactions basic transactions that should be with the national identity project. there are a number of countries that already have this sort of national identity project. there are other countries that are not so welcome to that type of project, but what can a baseline standard of information, what is the acceptable baseline?i think it's an acceptable discussion we should be having . haidi: one of the judges made a point i find quite interesting, thing that when everyone shares personal data with private companies like apple and samsung, what is the difference quantitatively when the government has it? what is argument against that?
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isit's not an argument, it actually about chronology. it is the government who is playing catch-up with the industry and using data. what happened in the first instance is the cyber industries have gone ahead of the government and started building information databases, and started developing psychological profiles based on people. right now, the government is playing catch-up. because of it, it has to view the fallout from the public when it sees data being misused. it's actually not a fundamental difference. it's actually about the chronology in which the developments have emerged. the other question is, for the government, it is going to be a global database of all the citizens in your country, therefore the government has to ensure that it has trust, cybersecurity protections on information, because it will be global.
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it is not just piecemeal. it is not just subscribers of a particular network. it is everybody. that is the scope the government has to do must be trying to gain the trust of its citizens. haidi: what are the implications of any potential changes that come out of this on the private sector? microsoft, samsung? >> i think it will limit the amount of innovation that comes out. right now, a lot of people are sitting on huge data sets, which can result in a lot of innovative services. i don't know what they are because they are in the future, but right now we are seeing how people are using their mobile phones to pay each other without needing to do any further verification, because the mobile phone is tied with your identity. we have other services which are more welfare driven. for example, social welfare payouts from the government.
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we are seeing all these types of information. if the right to privacy is enshrined in constitutional they shouldthen innovation, that and would not progress any further because everyone would be yelling for their information not to be shared anymore. it might be a showstopper in some instances. haidi: there is sort of illegal precedent aspect -- a legal precedent aspect that is interested -- interesting. you could say the conservative interpretation is that if a private company that handles personal data, there is legal recourse. it's more complicated in india if it is potentially the government that does this. >> indeed. with thee problems project in india is there is actually no recourse for agreement sees -- grievances to be raised. this is one of the sticking points and why it moved into a
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court case, to see whether or not the protections of individual consumers is sufficient, or if there should be more safeguards put in place. david: is it simply a small home in the road? and eventually the government there, becauset then being able to render services efficiently, you need this, don't you? >> i think it is debatable. some countries will have tried very hard to put in a national identity system. the u.s. is one of them. germany is one of them. there are a few others as well. because of privacy concerns, because of people who want to protect the liberty of people to have a semblance of privacy, it stops that project short. i know that the u.s. has a social security number system, but even then, it is not universal. there are a few countries that have tried to put in place, and privacy advocates have managed to stop it. i would hesitate on making that blanket statement. david: on that note, very nice
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to see you. executive director at asia cloud computing association, joining us on this almost existential debate on whether privacy is a fundamental right, how it plays into this biometric efforts from 90 government. one feature we would like to bring to your attention is our interactive tv function. tv allows you to watch us live, and see previous interviews, watch charts and securities, and become part of the conversation by sending us instant messages. this is for bloomberg subscribers only. check it out, tv . is it as easy as 123? alphabet shares take a dive. this is bloomberg. ♪
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haidi: google's company has beaten expectations with second-quarter revenue and earnings, and yet shares took a sliding trading hours after hours in the u.s. cory johnson has the details. corey: what a confusing quarter from google. what was there not to like? fantastic revenue, $20.9 billion in second-quarter revenues, earnings per share of five dollars and one cent, looks like a strong quarter. google is selling a lot more ads. the year-over-year increase was thatn the number of ads users clicked on. the prices declined a lot by 23%, but the price decline was out last by the number of ads
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clicked on. that was good for google. the real problem was the cost of getting the ads rose at a record rate. google goes out to other mobile sites or companies like apple to pay for the traffic, the right to run an ad on an apple iphone. google paid more than ever before. we saw a very big rise in the acquisition cause number. that disappointed people on wall street, because google has warned the costs are going to go up. we saw it in second-quarter results. that's why the stocks started to follow after hours. that was alarming for investors. nonetheless, a strong quarter for google in topline and price brad. -- price per ad. the number of ads, very strong, $5.01. cory johnson, bloomberg, san francisco. david: coming up, we will be
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discussing the future of ai. artificial intelligence in china . that is in the next hour. this is bloomberg. ♪
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♪ announcer: from our studios in new york city, this is "charlie rose." jeff: good evening. charlie is away. i'm jeff glor of cbs news. we begin tonight with politics. this week marks the six-month anniversary of president trump's inauguration. those six months have been marked by what seems like a n unprecedented and nonstop flow of news from the west wing. with more on the latest developments, we are joined by shannon pettypiece. she covers the white house for bloomberg news. and in washington, dan balz, chief correspondent for "the washington post." i'm pleased to welcome them both to the program.


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