consumer with the imax ceo -- did i get it right? we will have to check with him later on. david: when you look at where markets are, yes, hong kong is up. i'm going to give you detail of that in a moment. rishaad: we got -- we've got media reports saying there will be stability, just hold your horses, don't panic. yvonne: yeah, fundamentals that have really changed, but this whole thing has gone full circle. david: we will see what our china market strategist has to say about this. he was speaking with jeffries earlier who said probably not at this point in time. talk about hong kong, it is a different story. when you have an index that

falls 9%, of course you are going to get a bit of a pickup. if that can sustain altogether different proposal. japan, the philippines. sovereign bond markets generally speaking, yields pushing lower. commodities, big day yesterday pushing lower as well, felt a third of 1%. the focus still on what is happening within the chinese markets across these different sectors. yvonne: take a look at the little bit of relief we are seeing when it comes to tech. education today, we are getting that bit of a reprieve, so perhaps there is a sense people are buying on the dips, but the regulatory risk is just so uncertain, it is hard to see if bottom fishing is the way to go. tencent still headed lower on

the news that they were going to stop new registrations up wecheck users. certainly that was big news. we are watching some of these new education -- rishaad: you look at these other companies which are doing well on the market, up nearly 8%. david, you got a graph showing us exactly what is going on here. david: by the looks of how those education stocks are trading, you would not know they were down 60%. we are on bear market watch. what is also telling, tracking on the csi 300. have a look at volume and turnover.

i've hundred billion dollars on a single day. that is one to watch. we were talking about how state media and some signs the national team might be coming in. what are we seeing? rishaad: these are some of the headlines coming through from various newspapers. chinese investors seem to be pessimistic about the stock market. china expected to increase fiscal support. yvonne: they were talking about seeing more fiscal measures as well on the back of these macro policies that we are seeing in the second half. the messaging seems to be calm down, things are going to be

fine. >> what's happening is a good thing because what the chinese government is now doing is cracking down on the big companies that dominate various sectors at the exclusion of smaller companies. >> the more issues they are, the better it is for us. >> there's always this political risk. >> you question their exposure. >> foreign investors will have to have a clearer view of sectors which are investable and sectors which are not. >> investors which perhaps got a little more nervousness, they want to perhaps sit on their hands. >> we could end up doing exceptionally well out there. >> there's no way any local investors going to ignore china. >> i don't know what the chinese government is going to do next, so you have to be wary.

rishaad: going to our bloomberg equity strategist for china and the rest of north asia. what are you making of this? a bit of an upside today, but is that a dead cat pounds? >> i think there are too many unknowns on the long-term growth aspect overall. i think the risk premium can come down, but once the dust settles, we think that these names may not be able to demand the same valuations they once had. yvonne: given the volatility we have seen, what sectors are you focusing most on in terms of catalysts? >> right now, all sectors have not been immune to the selloff, but traditionally defensive sectors such as utilities have traditionally performed better. looking at the second half of the year, we are more positive on i.t. hardware. no energy, materials continue to

do well, and lastly, we think the peeking in china inflation could be a downstream catalyst for consumers. david: we have talked about the timing of all the regulations coming in, if it's antitrust, looking at data, looking at what is happening obviously in the education sector. in the summer, it came out that the 2021 priority should be about training in capital expansion. talk to us about this crackdown in tech, and should we be surprised it is happening now? >> the importance of tech to the overall economy has reached a point where there should be some regulations around it, and if we look at the global trend, we are also seeing more regulations towards cybersecurity and data

privacy. the direction china is headed in is not much different than the u.s. or eu, but i think what copy market off guard was kind of the pace of implementation. yvonne: the speed and severity of it as well. talk about what you are seeing in asia overall. >> even before this text selloff, we highlighted that we are seeing a diverging earnings trend between the three markets. over the next 12 months, china's earnings growth is expected to be the slowest amongst the three. on top of that, we have seen analyst estimates being revised down around 10% over the course of the year and taiwan and korea seeing double digit gains, so this gap in earnings is widening, and this is a reason why we think -- this is one reason we think china could continue to lag.

rishaad: let's take a look now at some of these first word news headlines, reversing course on mass mandates in the u.s.. the cdc issuing guidance recommending that vaccinated people should wear masks in public, indoor settings where the virus is spreading rapidly. the agency director saying recent data suggests some vaccinated people can still transmit the delta variant. >> information on the delta variant from several states and other countries indicates that in rare occasions, some vaccinated people infected with the delta variant after vaccination may be contagious and spread the virus to others. rishaad: more than 2000 people died from cobra in southeast asia, reporting the highest number of deaths in recent days. the delta variant has crippled

indonesia's health care system. china's top legislative body will reportedly discuss imposing new laws on hong kong and macau next month. national people's congress will review the proposal to add national walls during its upcoming session. china imposed sweeping national legislation last year. critics concerned about democracy and civil liberties. yvonne: still ahead, virginia 10 on gender-let investing and her prediction that she investing is the future. and the cfo/ceo of imax china on

the outlook of cinema. this is bloomberg. ♪

rishaad: imax china saw a rebound in earnings as a country begin to recover from the covid -- the covid impact from a year ago. yvonne: as of last month, more than 90% of imax theaters in china had resumed operations. david: great set of numbers. the cfo/ceo joining us to talk about these numbers. you went from 7 million -- i'm talking u.s. dollars -- $7 million in revenue to about teen million dollars.

what drove this? >> thanks for having me on. i think a few different things drove that. we started off the year quite strongly with chinese new year, headlined by a local language film that just did great is and is for us. we have record local language things happening, and our theater installations or

maintenance business is doing well as well in terms of higher than where we were at in 2019. hollywood films are performing really well. we had "fast and furious," "godzilla," and we had "avatar" performing exceptionally well. overall, local language box office theater installations performed exceptionally well, so we are really happy with where we ended up coming in at for the first half of the year. david: and your base case expectations for the second half? >> traditionally speaking, hollywood films take up a lot of box office in the second quarter, given all the influence kobe -- covid had on the release slate. we expect more hollywood films getting in on the back half of the year, so we expect the slate on the hollywood side to somewhat normalize, which is really what we do exceptionally well on. then again, as i said, our theater installations have continued to be pretty strong. signings have continued to be pretty strong. people continue to be receptive when they see the results we are generating not only on hollywood domes about ogle language films, so we expect to finish out the year quite strongly in the back half with all those things working to our advantage.

yvonne: last time i spoke to you, you mentioned adding 400 theaters in china by 2023. is that still on track? >> right now, we are at 759 theaters open. we have about 200 backlog. signings activity, we are quite happy with as well. obviously, things have slowed down in 2020, given everything that's going on, but we still see a lot of opportunity in the markets. local language films vetting stronger and stronger. hollywood films performing exceptionally well. we think in the market overall, the premium is asian of content -- when people go out to movies, they want to see big blockbusters, and that is the type of content that really lends itself well to us. as a result of that, i think people want to go to theaters and see movies in imax and we just kind of create an experience that people want to leave the home for.

yvonne: does the market share for hollywood domes -- the market share for hollywood films has fallen or slowed down. i'm just wondering, what is your outlook? you still seem to be quite optimistic about the hollywood film side of things, but against the backdrop of u.s.-china relations that are deteriorating, and there is a growing sense of nationalism against foreign-branded films. >> we are very focused on local language content. the chinese new year was very strong for us with three big local language films. we are planning a lot of local content and we expect to play a couple of other films coming up, so local content is a very important part of our strategy going forward, and we view it as growing and asked the more we grow that box office, the better it is for our business. hollywood films, while market share went down last year, we

obviously think that there were other reasons that play. we had covid and the delay in hollywood releases as a result. a lot of markets shut globally. things slow down, so we do view -- "godzilla versus kong" came out and did very well. "avatar" came out and did exceptionally well 10 years later. we feel there is still strong appetite in china, but having said that, we are focused on local language content as well. rishaad: have you got local partners in that localization strategy? >> it has always been part of our business in china. we definitely are continuing to focus on it. hollywood films previously really lent themselves to our format, the big epic blockbusters, and local language

films are starting to lend themselves to our format as well. they view it as a unique opportunity to position their film in the market. it has always been a part of our strategy, and it is growing more. rishaad: very quickly, tell us which movie you are most excited about in the pipeline. >> there's a couple coming up. "bond" is coming up in the back half of the year, the last in the franchise with daniel craig, shot with an imax camera, so that's what i'm looking forward to. should be great. david: i notice you guys increased your dividend/debt ratio traditionally 15%. is that an indication of your attitude and outlook for the market? normally, a lot of people would be a little more conservative with their cash.

>> i think that is exactly what it is. our business generates strong cash flow. we have a lot of confidence in our business going forward. we think we have an ability to fund that dividend and return capital to shareholders, so as a so, we increased that ratio in february of this year. it is a reflection of our confidence in the business and our strong balance sheet that we can continue to do that and continue to develop our business the way we have been doing it. yvonne: thanks for your time. rishaad: we will have a wrap up of big tech earnings coming our way next. this is bloomberg. ♪

david: let's talk about big tech earnings. a lot of numbers coming up in terms of valuations and market caps, quite a divergence, perhaps, between the u.s. and the tech trade that is collapsing in many ways, but the big five combined are approaching a combined $8 trillion in market value. for context, the chinese stock market overall -- everything and everything and everything -- is at about $11 trillion. for the broader conversation, you're not getting the same sort of boost, value has largely underperformed growth. we will see what happens depending on what happens. yvonne: su keenan joins us now with a wrap up of the tech

earnings we saw. i was quoting dan ives from wework saying this is a drop the mic kind of quarter for apple, but it seemed like investors were more focused on growth. su: nothing like words of caution to kill a rally. we also had apple not giving a specific earnings forecast, part of a recent trend, really putting a damper on what could be called the blowout record third quarter. the company said on the conference call that supply constraints related to the ipad and iphone in the current quarter will likely slow sales and that trend, by the way, i'm not giving earnings guidance really they expected at the beginning of the pandemic, so we are seeing that again this quarter. investors not really liking it. and analysts point out that despite all the great stuff we saw apple do, investors want to know what is next. let's talk about that blowout

quarter. iphone sales alone were up nearly 50%. revenue came in at 81.4 billion dollars, blowing away the estimates, but when you consider the shortages and the patchwork of covert-related restrictions that are likely to continue, analysts weighing on apple's business this year and likely to weigh on apple's stock. alphabet, the parent company of google and youtube, sales beat analyst estimates. advertising business was really the driver here, boosted by marketers trying to get a lot of consumers to shop again and travel again as a lot of countries he'd the restrictions, and youtube really was the biggest jump with ad revenue increasing 84% to $7 billion.

rishaad: again, it is about what happens next. the azure business is the thing which is concerning people here as well. su: you have to realize that the cloud computing business is the main revenue driver for microsoft, and it kind of spooked investors that azure sales growth grows after the currency fluctuation. that actually was a slowdown previous quarters, so with big competition from amazon and google cloud units, that clearly is a weight on the stock and tempered a bit of the optimism. let's talk about the numbers -- fourth quarter sales climbed 21% with net income rising to just

over $60 million. again, it is expected there will be some pressure on tech stocks in the u.s.. yvonne: thank you. starbucks' quarterly results beat estimates on strong u.s. recovery, but slowing china growth dampen investors' mood. same-store sales, a key gauge of restaurant success, were way below estimates in china. the result is a challenge for starbucks as it rapidly expands in china at i've thousand locations in the region and planning 6000 new ones this year. rio tinto plans to spilled 2.4 billion dollars building a lithium mine in serbia. the biggest producers are finding themselves more cash to invest as many boost record profits on the commodities rally. rio reports results on wednesday. david: a brief check across the markets. a quick look at your top 10 and bottom 10 right now. give it a minute to load here.

volumes are quite substantial. we are looking closely at the philippines, down 2%. we have broken that level. we will see what happens. plenty more ahead. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot.

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highest number of deaths worldwide in recent days, and singapore officials are reminding companies listing overseas they must comply with data protection laws and we have malaysia's trade figures do later on wednesday. rishaad: let's have a look at some of the first word news headlines. the maintaining its outlook on the biggest rebound in decades while changing regional forecasts.

the united kingdom got the biggest bump among major economies with the imf seeing growth this year. sit negotiators missing another key deadline as differences remain including how much unspent covid-19 money can be used for infrastructure. we're told rates including paris on some products not covered by an earlier round. officials tried to emblem it levies in the third quarter,

though they are still awaiting final approval. an encouraging statistic out of india which added nearly 30,000 cases of covid, the lowest daily count since the second wave of the virus began four months ago. the total tally stands at 1.4 million. only about 7% of india's population is fully vaccinated. tens of thousands of visitors are in tokyo for the summer olympics. only about a quarter of japan's population is fully vaccinated. yvonne: this is where you are seeing the ioc briefing, talking a little bit more about what has been going on. of course, we saw yesterday in tokyo another flareup in cases. it is a record in the capital.

you can see more coverage of the tokyo games. we have a bloomberg medal tracker on the terminal. i've got to give my hat off to siobhan halsey, making history for hong kong, the first hong kong swimmer to make it through -- make it to a final in the two hundred-meter freestyle. david: you took all of it. your real home, your adopted home. rishaad: how long was the drought for a gold medal in the philippines? something like 97 years?

having a look now at tencent. horrible time of it, but it is coming back today. looking at that one, up 3%. let's get to asia tech reporter. these companies have a lot of regulatory overhang. tell us about this. they have different types of regulation problems. >> no new user registrations will be allowed until early august because the company is working on some security technical upgrades according to chinese laws and regulations, but the company did not specify exactly what the problem is. it could be related to china's

data security issue. yvonne: tencent relatively speaking has been able to avoid the crust of these regulatory policies. do you think pony ma can stay that way, keep the company away from government scrutiny, or is there any other chinese company that is a little bit more protective? >> relatively speaking, tencent is better off because it has less touch point to the real economy to the physical e-commerce or delivery stuff, but that is this week -- at this week's credit show, china is more broadly trying to rein in

staff who probably has excessive control over the chinese people's daily life. on that front, tencent cannot be left alone. rishaad: thank you very much for that. of course, you can get more context and analysis on "red lines: china and big tech." do watch on the bloomberg technology channel on youtube. david: speaking of red lines, the three red lines pertain arguably to bang for your buck, the biggest, and potentially in terms of the impact of the economy, the property sector, and its final demand coming from that single part of the economy. xi jinping is confronting the spiraling crisis. when you look at ever grand and what is happening there, financial worry for a country

that has no shortage of financial concerns. let's bring in david scanlon to talk about this, osher asia finance editor. it is sexy to talk about tech and what is happening there because a lot of people are invested in the market, but potentially a crackdown or cooling in the property market might have a bigger impact on the economy. what are we looking at as far as the financial system, and let's connect those two. >> i think property can be very sexy and very important, as you mentioned. we started with fintech, with and in november. it looks like they have their eyes set on the property and this sector is already under scrutiny with the three red lines we were reporting about,

which limits a company's ability to borrow. if they crackdown further, this just adds another headache to evergrande. there is a chilling stat from ubs today in a note saying it is 77% of their maturities are coming to in the next 12 months, not just long-term bonds but short-term loans, the commercial paper, so that is a lot of debt to cover in a very short time, so it is going to be a really challenging couple of months. yvonne: options seem to be running out for the billionaire huei. >> he has been to the brink before, talking of course about the chairman who tapped his friends before and has tapped

governments, and they do seem to have some options that can be reported today. they are based to try to do something to help them out. we know they talked to other developers to perhaps take some projects off their hands, to raise more cash, and don't forget, this is a guy who has been a loyal member of the communist party for 35 years. he does seem to have some support in beijing despite the crackdown we are hearing about, so he does have some options. he just does not have a whole lot of time. rishaad: give us a sense of the crisis and how it it's into the broader beijing global selloff in assets. >> clearly, this is a game changer for chinese assets. we heard winston ma on television earlier, the former manager for cic, the big

sovereign wealth fund saying he is discounting everything now. now you have to factor -- factor in regulatory risks in everything you look at in china. it is very difficult because it is very unpredictable. yvonne: it sure is. our asia finance editor. we talk about what analysts are saying about this stock right now, and it really is ubs that they called it and said the selloff was going to get worse and potentially we could see more pain to come. john lam seen slashing that price target to $3.15. that assumes another 40% downside for the stock, so this just goes to show, it is going to be tough to find a floor on this one. david: absolutely.

it goes into i guess it is a sector at the broader property story that you put this together with what they are trying to do with the tech companies and transferring a lot of that purchasing power back to the middle class chinese consumer who are faced with rising house prices, rising costs of raising and rearing children, and this might actually turn out to be a consumption boom for china if they manage to get all the savings rates and hopefully improve consumption. rishaad: we are focusing also on what's going on with other property companies, looking at companies which allow companies

in china to list in the u.s. certainly what we do have are many companies, so this was something which was forbidden by china a few years ago, but regulators have essentially not been enforcing that at all. lots more to come, including a focus on gender investing with virginia tan in our equality segment next. this is bloomberg. ♪

rishaad: we are going to be focusing on a quality now as we focus on gender-led investing, a strategy companies use hoping to improve the quality of the lives of women and girls. yvonne: i spoke to virginia tan about the opportunities she sees in this space. >> i think the big elephant in the room is really people trying to get their hands around the concept of what investing in women really is. i think a lot of conventional institutional investors think that this is limiting, and my

answer to them is this is as limiting as if you look at a specific vertical like fintech, for example, which a few years ago, nobody actually believed in. i think there is a blockage of thinking at some level. i think when people think of gender-led investing, they think of investing in a woman and they cannot think beyond that woman, but the key is seeing what these entrepreneurs are building. i lot of the focus is how women in the value chain are driving the new economy, and i think this is more and more irrelevant . >> some say that perhaps women-focused funds are not returning as much. can you counter that? >> what we see with our portfolio is returns as much as

any fund. we are not seeing differences in the way -- our team's approach is a commercially driven one. we are not aching companies just because they are owned by women. we are picking them because they are really great teams, building companies with strategic advantages. we see verticals if it's plant-based food, rural-social commerce, if it is influencer-driven beauty. we see this as trends of what we call the new economy. i don't really see how we are making a decision that women have been driven funds are going to be less successful. i believe this is the biggest opportunity of my generation, and i'm willing to stick my future on that. >> can you talk about the trend that is building now, women can amplify the impact of technology time and time again.

where do you see the focus of change? >> women are basically controlling $28 trillion of consumer spending power, and as we basically accelerate a digital economy, this economy is increasingly consumer driven, and i think while women hold this consumption power, they are also catalysts of consumer behavior change. sustainability i think will be a big business driver just because of the world we live in. the world we lived in pre-covid was clearly unsustainable. data showed us that women as consumers are actually, for example, more likely to seek digital health services online. they are actually driving the adoption of plant-based food diets for themselves and their households. these are just some exams of how

women as consumers are driving change. women are more likely than men to adopt eco-family practices in their purchasing. >> i know that lean in china has more than 150 members. also interesting to note that chinese women contributed more to the gdp than other women in other parts of the world. although it is a challenging environment for women in china, are there lessons to be learned? >> i spend a lot of time in china. the way i saw technology in the rise of a young female consciousness and the economy formed a lot of the thesis because in china, it was clear to me the she-conomy was an

opportunity, not just a social endeavor. when i saw in china essentially was first of all, there's a lot of what i call these new economy business models. over 90% of users for little red book work women and mostly under the age of 30, and that was driving a whole different way of e-commerce. >> would you have done anything differently? >> i think it has been both humbling and also rewarding. despite so many of the networks we have as a team, despite my previous background in finance and law, it has been challenging for us, and i feel like if it

has been challenging for me, what more do entrepreneurs face? i think fundraising has been a big challenge for us. i think changing the perception of people that this is actually not a limitation but an opportunity -- i think this has been the biggest challenge for us. what i have done anything differently? absolutely not. i think sometimes you just have to go out there and you have to try, and if you really believe in your thesis, you have to push it with all of your might. i think what you learn when you are building a fund for the first time is that you cannot convince everybody and you cannot win everybody over, and that's ok. i think the biggest achievement we have had is we have been able to attract the capital willing to back this thesis and willing to back a new team, and i don't think that would have been possible without the support and

belief of family offices in asia. david: there we go. that was virginia tan. we are up 1.8% for the day, coming off the lows. in terms of the breakdown, have a look at some of these. we are also getting a line coming through on the block trade. there we go. coming in at 198 k-pop, so quite a big block. 200 up, five down. we are only down 31% now. that is an update there. there's plenty more ahead. this is bloomberg. ♪

yvonne: a quick check of the latest business flash headlines. microsoft reported sales and profits that exceeded estimates for a 10 straight quarter. however, optimism was tempered by falling growth at its azure accounting business. apple third-quarter earnings blew past expectations as

revenue of $81 billion were up with iphone sales increasing nearly 50% to just shy of $40 billion in the last quarter, but the tightening was tempered after the company warned sales growth may be slowing and supplies are getting tight. rishaad: let's take a look at what we have coming up. an exclusive interview with the billionaire investor known as india's warren buffett. he is someone predicting a decades-long bull run for indian equities. before that, though, jp morgan's head of major research telling us how he is adjusting strategy to account for china's regulatory uncertainty. and don't miss our coverage of the fed's decision. we'll find out how hawkish they are and any clarification on when they are likely to taper. >> it does look like the fed is

going to start to talk a little bit about how they plan to taper and when they plan to taper. at the moment, we expect the fomc language will be fairly balanced. >> as we look toward the jackson hole meeting, we think they will have an update on the inflation and labor market side. >> i think the market is priced fairly appropriately for an end-of-the-year decline. i don't think the fed needs to push back much. >> i sort of learned don't fight the fed. it is a losing battle. david: the broader index in hong kong, the market has been in focus, so we are looking at some of these maker stocks. our guys at bloomberg intelligence have come up with the research here that this push

for exercise is really going to push in china. yvonne: and the olympics as well. rishaad: should make people excited about exercising. a lot more to come on bloomberg markets. ♪

>> from the heart of where innovation, money, and power collide in silicon valley and beyond. this is "bloomberg technology" with emily chang. emily: i'm emily chang in san francisco, and this is "lumbar technology." it is a super tuesday for tech earnings. apple beating on the strength of iphone sales, this ahead of new