Case ifespecially the you look at currency markets. Absolutely nothing happening. Yields, fixed income, fairly mixed in the broad market. Let me mention malaysia, we are down about three fourths of 1 . The only market thats actually spiking up. Oil prices remain subdued. Forecastersot of thinking that the currency will weaken further. Last i checked, the koc i was roughly at 1680. About 10 points above the december 2014 low. That takes us back all the way to early 2013. Several cities in taiwan will be closing offices, 6 00 p. M. Is evening local time as the typhoon approaches. Lly a category two currently a category two. It is expected to be upgraded when it makes landfall. It was 550 kilometers about an hour ago. Southwest of naha in okinawa. Stay safe, stay dry. China Railway Signal making a slightly positive trading debut in hong kong. The first major listing since the stock route. Tell me how it all went in the end. It was a pretty exciting day here at the Hong Kong Stock Exchange because as you mentioned, it is the first ipo we have had since that equity route that wiped 3. 4 trillion from China Mainland shares. China Railway Signal listed at six dollars 30. Its the bottom end of its ipo price. Some analysts were hoping it might go as high as eight dollars opening price but we saw it at 6. 30. The last half hour or so, it has been pretty unchanged. We have not seen a drop below that listing price but it has been holding fairly steady going up by either one cent or dropping dax bash dropping back down. One point 6 billion sold to Global Investors and about 87. 5 million to Hong Kongbased investors. That gives the company a market 55. 1 billion hong kong dollars. They say they will spend about 20 of the proceeds into domestic and also overseas acquisitions as they really try to move forward into these rail signal markets. Back in march, the Chinese Government said railway is one of the 10 major focuses that they are working on as china starts to expand and moving to more global markets. At the Hong Kong Exchange earlier today, we did have the chairman and the cfo both here. A lot of excitement. They rang the ceremonial gong and we saw quite a big spike in interest in shares in that first hour of trade. As i mentioned, it has pared back a little bit at the moment, trading fairly unchanged since the ipo listing price. Rishaad thanks. A long list of republicans who would be president have begun the equally long race to the oval office. The 10 leading the initial polls faced off in the first debate of the 2016 campaign. Lots of attention on donald trump. How is his night going . He certainly dominated the night. He was literally at the center of the state. Although the candidates tried really hard to keep making it about them, it kept going back to him. Probably his biggest headline he when he refused to say would support whoever the republican nominee was. Essentially saying that if it wasnt him, he was reserving the right to use his considerable wealth to run as an independent. That got everyones attention. He could potentially run into some trouble in terms of his desire to broaden his appeal because he had some trouble answering questions about things he said about women in the past, some of his changing ideological positions on things like abortion, and some comments on mexico and that sort of thing. Some potential seeds of trouble for him but probably a very good night in terms of holding the attention which is what he wanted to do. Will if he does run, that be an interesting president ial election to see. Trumps use of bankruptcy laws came into play. Never has he personally gone bankrupt but that he has in fact use bankruptcy laws to his advantage because why not . He said he views them on four different occasions and that headline lenders are not sweet people. Shery there were also a lot of strong views on the iran nuclear deal, not surprising there. What was the key take away . All of the republicans who spoke out on this work against the deal to some degree or another. Several said that if they became president , they would actually, even if the deal takes effect now, they would attempt to undo it once they took office and to reimpose sanctions on iran. To the iranians that the accord really is only good for the next year or so depending on who the next president is. The republicanat field is essentially convinced that the accord will take effect and that congress will not be able to stop it, that the only way to stop it would be in a general election. Shery thank you very much. Other stories making headlines. In sydney. Tumbling they sold shares to Institutional Investors at a 5 discount to meet new capital rules. It is also looking to raise about 370 million by selling stocks to existing shareholders. Virgin australia has reported a fullyear loss of almost 70 million but says it will return to profit next financial year. The carrier says it is ahead of schedule on the cost saving targets after narrowing its loss from the previous year. The companys lowcost brand will begin operations. Meanwhile, virgin will increase its capacity to new zealand and the South Pacific islands to meet demands. South bank jumped nearly 5 in tokyo, the most in 10 months. After announcing a share buybacks scheme. Surgesuarter profit prompted the move. Billion wello 1. 7 ahead of estimates of 1. 2 billion. They say they are committed to turning sprint around. You can get more of this on bloomberg. Com. You will find indepth reports and market data and you can watch them interviews you may have missed on bloomberg tv. Having a look at what is going on market wise. What is the latest now, david . Are watching htc. Obviously, the stock cant get any lower. We are down 10 . A few things. That certainly happens when you miss about every financial metric possible. Loss per share, revenue, the outlook. You have this range from , ilysts and if you miss that think it was a most half of the lowest one. Very bad. In Earnings Report yesterday confirms that the company has had a hard time over the past several years. That is the stock for you. This is our supply chain chart which shows you the companies to which htc cells. These are the customers and on this side is the suppliers. Eachan go to through one. G holdings for example gets about 12 of its revenue from selling to htc. Aret of these companies independent. Its not a big part of their business. You look at the phone industry, these Companies Supply other smart phone carriers as well. Let me just show you a quick church. Chart. This is less than a hundred. Its hard to imagine what 405 four or five years ago, this stock. Analysts that were over financials, talk to suppliers, talk to customers, across 30 only one has a buy recommendation. Seventh a hold. Do not touch the stock. If you have it, sell it. If you dont, dont touch it. We will see whats next. Down from over a thousand. Keep it there. Back to you. The first debate of the 2016 campaign has just about finished. We will be finding out how republican hopefuls got on a little later but coming up next, the worlds first smart nation. The man in charge of making that dream a reality. Singapore as it turns 50. Rishaad lets check on stories making headlines around the world. Taiwan has issued emergency flood and landslide warnings ahead of a major storm expected to land later today. In taipeid offices and other towns and cities will be closed from 6 00. This typhoon seen from the International Space station earlier this week when it was the most powerful storm on earth this year. It has weakened somewhat. Forecasters say it could be a category three by the time it hits taiwan. Families of the people missing offflight 370 sounding about what they say are mixed messages about the wing part found on reunion island. Malaysian Prime Minister says it is definitely from the plane but french investigators only say it is highly likely. Malaysias transport minister says more debris including windowpanes and the cushions have now been found on reunion island. Released an animation that shows the dark side of the moon for the first time. It should be called the far side of the moon as it actually receives as much sunlight as we do we just cant see it. The pictures were taken by a satellite orbiting million miles from earth which show the moon crossing the Pacific Ocean in and north america. Shery lets get back to our coverage of singapores Golden Jubilee celebration. Take it away. Morning from the lion city. Singapore has to continue to reinvent itself if it wants to stay relevant over the next 50 years. Smartal is to be a nation. Singapore wants to be the first smart nation in the world. Where are we in this journey . Well, we have an assessment. Good to have you with us. Most people think that singapore is already a smart nation. What is a smart nation . What is the vision the government has . To be a smart nation does not mean we are not already, it means we want to go further. We want to tackle difficult challenges that we havent so do many countries in the world. A smart nation is rethinking the future. Future of transportation, energy management. Hes are important issues to every country in the world. To work on those means that we set our goal to become a smart nation in using data and technology to tackle challenges. A lot of people want to see a singapore can succeed. Some say singapore will succeed because it is so smart. Not a fair observation though, right . No. These challenges are big and very difficult. Our size is actually a strength for us. It is also a challenge because we always have to use resources to the best of our ability. Being compact gives us a chance to experiment as you say. Give us a chance to try new things. Or are people from around the world that are watching and also want to participate. Talk about participation. You have to rally the people together. There has to be a changing mindset. How difficult is that given that we have an aging population . The mindset issue is an importance in area for this effort. When we think about smart nations, its universities, young professionals, but its also going to be people of all ages. How do we create new ways of serving citizens . Technology is the cornerstone. We cannot do these things without using technology more effectively. For example, our goal is to connect everyone and everything and everywhere in the island. We would like to make sure connectivity is everywhere so that we can improve transportation and energy and health. We do have some basics to continue to work on. Startups, government, research all have to come together. Thats what we call it smart nation as opposed to something around startups or education. All of us working together. Where are we in this journey . The governor has invested billions of dollars. Thousand more than a census controlling everything from trash can to vehicles. We are in a prototyping stage. We think of 2013 as our year of imagining, 2014 as the year of designing, and 2015 is the year of prototyping. We are rolling out different scenarios, but also looking at other parts of the island in which we can try new things. The importance and area, together with the universities, with the research institutes, we are only playing a part. This is really a whole of singapore effort including all the citizens. Part of this will be trying new things, part of it will be taking feedback and seeing what we can create. It is an experiment. It can fail. What could lead to a failure . Fax anytime you are trying something different, you always have to reach into the unknown. The further you go into the unknown, the less you know. Bet means we have to comfortable that sometimes things did not work exactly as we would have hoped. Thats the whole idea of prototyping. We are calling it a prototype, not a pilot because sometimes pilot leads to the idea that i have solved the problem and i sibley want to prove that it works. Protecting says, i may not know the answer, let me try and see what feedback i get and we will go from there. We have to become trouble with ideas not working the first time and improving as we go. Singapore on its way to becoming a smart nation. It is an experiment we can only hope will succeed. If i had to place my bet, it will. Thanks a lot. Rishaad the bank of japan is making its latest policy decision. No change expected. Yvonne they decided to keep policy unchanged. That is what all 37 economists from bloomberg were expecting. That is despite the core 0. 1 . Ion we saw to they say they expect cpi to remain above 0 for the time being. Still seeing very low inflation right now. Officials seem to be betting on the economic rebound this summer after we saw quite a slump during the season of spring. Actn, exports and factory output are expected to pick up but with fluctuation. The vote came out to be 81 among members. The chief proposed to lower the Monetary Base target to ¥45 trillion. We are still at ¥80 trillion now. We could be seeing some added stimulus possibly in october. We will continue to watch these headlines but the boj is saying that Housing Investments have been picking up so looking a little bit better. The core cpi is expected to save 0 for some time. Rishaad thanks. Up next, tensions in the South China Sea. We will discuss what was behind the delay. Shery sean asean issued a statement talking about their concerns about the South China Sea. This is what its all about. It was about the communique. They could not agree on the wording. They were supposed to put it out wednesday. After the end of the main meeting. The thursday meeting had other countries involved. They could not get it out or agree on the South China Sea language, just how far to go in criticizing. Shery they did not actually talk about china specifically. Thats the whole thing. They had no language calling on china to stop reclamation. They said all nations involved china has a point that there are other claimant states. Other claimant states have done reclamation there. The scale of what china is doing does differentiate itself from the other claimant states like the philippines and the and vietnam. Rishaad we have to look at what this does. Essentially, they are trying to become an economic, cohesive working unit if you will. It seems that every time they meet, this thing overshadows it. Asean andwho follows all, you immediately think of South China Sea now because every meeting is how far is dominated by how far they will go. They agreed to years ago to start discussing a code of conduct with china. Asean. S not a member of them. You cant blame it depends so heavily on china, what can they do . Are handful of the 10 claimant states and have skin in the game in terms of this out tennessee. Then you have the others who have no claim so they have no personal with china. China is the elephant in the room. What i think there is a story they might be stopping that Land Reclamation . They said in june they are done with the actual reclamation, the actual pulling dirt up and building islands. Now they are concentrating on building facilities. Shery always great to talk to you. Coming up next rishaad republican hopefuls facing their first test on the road to the white house. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Emily mark pincus gives us a view of where his turnaround investors exist. Where the companies that are seeing growth summit. Im emily chang and this is bloomberg west. Coming up, uber heads to court over whether its drivers should be classified as fulltime employees. We just caught up with the companys lawyer. Plus, Core Companies wreak havoc on traditional Media Companies. All of that ahead on bloomberg west. Zynga shares are down in extended trading. Secondquarter sales and earnings per share beat the street, but monthly active users continue to drop. Joining us is Chris Paul Mary in l. A. , and dan, the cofounder of molecular in chicago, and lewis on the phone. Chris, i will start with you. 100 million users last quarter down to 83 million this quarter. That sounds significant. Chris it does sound bad, but part of mark p givess strategy mark pinkuss strategy is that there are not as many games available for players. Emily he returned to the company in april. What sort of clues do you get about how he will turn his company around, or if it is even possible . Chris i think it will be it has been a tough slog. I think they are focused on some core franchises and some core genres that make sense to me, but it is difficult because they are relatively late to the mobile game and its hard to make headway. Other companies are already dominating the download and user charts. Emily this is a hit driven business and it seems like gamers have moved on from things like farmville. What about some of the new games, new words with friends . Are these doing well . Dan the majority are not doing too well right now. If you look at the top app charts, you do not see zynga in the top 25 or even 50. I think it is not doing well comparatively speaking. Emily what is the likelihood, chris, that zynga can pull another hit out of his hat . Chris its another Earnings Report that if you are bullish, you see hope, and if you are a critic, there is a lot to worry about as well. There is a strategy focusing on core. They Just Announced a believe longer slot machine game. A willy wonka slot machine game. Emily what about the newer games expected to come out later this year . Dan, what can you tell us about those . Dan they are doing a new farmville game. That title has been very successful for them. But these numbers keep going down with the multiactive users. The new battle games they are coming out with, it will be interesting to see. But im not sure they will meet expectations compared to the other casual games in the market. Emily lewis, are you more optimistic when it comes to having another hit . Lewis i think the natural acquisition is beginning to pay off. They also have empires and allies, which is trying to go get more those more of those lucrative gamers. Theyve done pretty well. That with also shipping back to amazon in terms of infrastructure. That could help with some of the cost. It will propel them in a positive direction. You can take the Quarterly Results and read them in a positive way. Emily we will continue to watch the headline. We will be listening to the call with mark pinkus at the top of the hour. Thank you all. A long list of Media Companies reported earnings this week and investors are binding finding plenty of reasons to worry about the future of traditional tv. Disappointing Quarterly Results from amc, viacom and others, viacom had the lowest numbers. Disney also sliding 11 yesterday following its report. What is facing all of these companies . The emergence of skinny tv bundles and streaming products. Cord cutters cost 50 billion in affiliate fees. There is one winner in all this, and that appears to be netflix. It is one of tvs main competitors. Still ahead, keeping drivers at contractors instead of fulltime employees. We will hear from uber next. And hackers will share just how they hacked into a tesla model s. Emily car hacking. Tesla is one of the hardest to hack into. Two researchers will unveil their research on what it took to gain access to the car. They were able to hack into the cars system, but needed to have physical access to the vagal and directly connect its to the vehicle and directly connected laptop to the computer on board. Tomorrow, i will be live from death in las vegas to break it down. On defc uber is back in court today to determine whether drivers should be classified as fulltime employees or contractors. A San Francisco judge is deciding right now whether to grant classaction status to drivers. If the judge grants classaction status, uber will have to reimburse for things like mileage and tips rather than just the three drivers in this current suit. We spoke with one man involved and asked him how it could affect the Business Model. Today we are looking at whether 3 drivers should represent the 160,000. Most of the drivers want to keep things the way they are. Im looking forward to getting in there and arguing today. Emily a lawyer for the plaintiff did not immediately comment on the hearing. But they did respond to ted boutros. Even though the comments that we estimated from drivers saying they do not want to be independent contractors, the plaintiffs said they dont care what they want. They are saying, we want to represent all those people. It is irrelevant that they dont want us to represent them and they dont want to seek what we are seeking. You cannot have a class action in those circumstances. Emily ted boutros is ubers outside counsel. What is the bigger impact on the economy . Joining me is the cofounder of a food delivery startup. You guys Just Announced today that you are reclassifying your workers as employees. Why . That is correct. Sprig started with one in to make it professional and we want consistency of experience. Emily does not make it more expensive . There are increased costs, but we do not make our money solely off the fees associated with delivery. We make our money off the food we sell. We are not as line upon the cost as another Company Might be. Emily eric, what is at take forever at stake for uber . Independent contractors, they can raise or lower flexibility. It is much more affordable for them than fulltime employees, or employees that would likely require them to pay Social Security or health insurance. Emily you are talking about paying taxes, paying benefits, reimbursing for mileage or tips. Potentially thousands of dollars per employee. An uber driver can decide when to go to work, how long they work for, whether they do it for a day or three months. Or they could take a three month break. They really have a lot of flexibility. A sprig employee, they have a different situation. That is right, i think they have different situations and relationships with their employees. I will not weigh in on the legal argument, but it may make sense for uber to have independent contractors while we have employees. Emily what you think . It is a thorny question. They can work for a number of ondemand economy startups. They have the flexibility emily they could work for multiple driving services. Andovers argument is that every driver has a different situation will stop a different situation. Maybe one driver meets the complicated definition while another does not. Rather than a classaction lawsuit, lets just look at these three drivers and the. Emily we are expected to get some sort of indication about which way the judge is leaning if, indeed he says this is a classaction suit. Will other states follow suit question mark how big could this get will other states follow suit . How they could this get . California is pretty vague. Thats pretty big. California is pretty big. Its where they launched. Emily and we need to point out that there is one lawyer that has been targeting a bunch of sharing Economy Companies. Home joy, which is a home cleaning company, said, look, our business died because of these lawsuits. Were you at sprig worried about this suit coming to you . Certainly, the Public Perception provided us with a lot of information as far as understanding the issue, but we treat our people well and have not had any lawsuit. This is about developing a better relationship with our servers. Emily you have been talking with uber investors who has said the company could survive this. What are you hearing . As new as it is, uber is pretty entrenched. It is way ahead of lyft in the u. S. They are seen as the incumbent. If the government makes it harder through the rules for their employees, they will figure out how to make it an advantage over anyone else who might try to take away the big role in the market they have eaten up. Emily a judge in the lyft case came out and said, they dont seem like contract employees or fulltime employees either. And one said, what if we thought of them as owners rather than employees or contractors and you explain that . Or contractors can you explain that to me . There has been a lot of middle ground that is with debts where you are not a contractor or an employee. There is a lot of middle ground where you are not a contractor or an employee. Senator mark warner has asked questions about that. You will see that it will continue. Emily do you think about the future and longevity of your Business Model . How sound do you believe it is . I think we are redefining the food industry, and in doing so we have a 2 trillion market in front of us. I think the business is pretty sound. We have access to healthy, organic meals within minutes. Emily what is on the menu tonight . I was just looking at the lunch menu. We had a pork burrito. Its usually unhealthy, but we use allnatural ingredients and we use a lot less flour than a traditional tortilla. It allows us to provide a much healthier dish. Emily i know you will be monitoring any headlines coming out of the courtroom about uber today. Thank you both very much. We walk robotics, the wearable exoskeleton for individuals with spinal cord injuries, announced today that secondquarter growth was slower than expected. The stock was down 2. 3 . We got reaction from the ceo. The primary focus is not a lack of people that want it. Its a lack of getting people to pay for it. We have a strong internal Reimbursement Group to take everything from zero to finish for every individual and to help them through the process. We are trying to get insurance prices to be predictable and quicker. We currently have 70 users are users who are using them every day. And we have roughly 100 systems that are used in rehabilitation and Training Centers around the world. It is clear that the product makes a substantial difference in the health of an individual. The data is all very positive. The next thing is mostly working on reimbursement. We dont forecast the time frames, but we believe very active. We will be very active. Emily that was Rewalk Robotics ceo larry jasinsky. Coming up, we take a look at why a key settlement deal falls apart. And one expensive ticket to ride. Nasa reveals how much it is paying russia to keep using their rockets in space. Emily its time now for the daily byte, one number that tells a whole lot. Todays byte is 490 million. That is how much nasa is paying for its extension with russian rockets. We knew it would have to extend its contract, but did not know until now how much it would cost. That works out to 81. 7 million per seat. Nasa is hoping to have u. S. Commercial crew vehicles in service by 2018, but there is a threeyear leadtime for flights. Googles antitrust fight with the eu continues. Where did google go wrong . The biggest miscalculation, it assumes a deal with the last commissioner would eventually come through. And it didnt. And whats more, the eu investigation has snowballed under the new leadership. Im speaking to the managing director of the antitrust advisory boutique premerio. Can you tell us what you think went wrong . Why was google so sure a deal with going to happen and why did the last commissioner failed to get the support he needed . Good seeing you again, emily. Its a good question. Im not sure anyone can say anything really went wrong. If the nature of the beast in politics it is the nature of the beast in politics and is inherently political. While the predecessor wanted to get his settlement with google under his own belt command under his aegis of the dg comp and wanted to resolve this big case, he failed. As one of the prime reasons, one must look at the brussels lobbying that went on behind the scenes. A lot of lobbying occurred both from the google plex as well as its competitors. Emily lets talk about the lobbying. The businessweek story focuses on this guy who basically spread this idea of fear of google. Tell me about that. Andreas i was born and raied in germany. He used to be in charge of enemy and of energy and now he is in charge of the digital economy. And they are launching a sector wide investigation into digital marketplaces at the moment. It is a hot topic. What does he have to do with this . You might say google competitors and detractors even here in the u. S. Have used both the commissioners as well as the commission itself in terms of the enforcement powers, as a cats paw, if you will, because they decided not to bring formal charges and decided to agree to the voluntary terms that google proposed. Whereas the European Commission is now being used, if you will, by the lobbyists to bring charges. Emily and we should point out that other u. S. Tech companies are part of this complaint, from expedia to yelp. But the new competition commissioner, it is interesting that this investigation, this probe has got even bigger. Should other companies worry . Andreas on the one hand, youre right. I would not necessarily say it is a general trend at the european level to fight or otherwise undermine american companies. Im not saying that im right, but my opinion is that it is infighting all across the board. As you pointed out, the detractors of google include microsoft and all of the others you mentioned, and those are american companies. Are we being targeted . Im not sure. Are new Economy Companies being targeted . Probably yes. And there is a certain sense and the story also mentioned a very well known and oldschool german publishing house. You have to look at these entities that are bringing complaints, they may have missed the digital boat if you will, and are now trying to use antitrust or Competition Laws to get back on the bandwagon and get a competitive advantage. Emily we will be following how google comes out in this legal battle. Thank you so much for giving us back story. The first republican president ial debate is tonight. The gopdebate has been trending. Snapchat will be carrying photos throughout the bait and the debate and featuring them on my story. Well be watching. I will be live in vegas tomorrow. The following is a paid advertisement for timelifes video collection. Announcer it was the summer of 1969, america had just put the
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