i am stephen engle in hong kong. more from "bloomberg technology" next. ♪ is "bloomberg technology." i am caroline hyde. apple closing up, and investors are optimistic that the next iphone will lead to a resurgence in sales and help the company grow. another record session. check up my -- at my bloomberg. digging in to see the i.t. , not quite as stellar as we saw the financials rise more. saw qualcomm,we cisco, paypal. they were some of the key winners in the s&p 500. on the downside though, the worst performer. now, let's go back to apple. we are joined by a reporter who tracks the rises and falls of the most valuable company in the entire world. and now, they are much more valuable. report: they are. the stock is at a record high. the market capitalization, because of the buyback in recent years, they are actually a but theit below that, stock is at the highest ever. caroline: the market closing tentatively so close to $700 billion. is it just the market rising, alex? is there exuberance? boost after take a the

i'm stephen engle in hong kong. more from bloomberg technology, next. >> this is bloomberg technology. our top story, cisco shares still up in after-hours trading. the company reporting second-quarter revenue was over $11.5 billion, just eating estimates. it may fall short of analyst projections. working to jumpstart sales growth, since the network industry shifts to software-based services. are investigating the extent of contact between donald's advisors and russian intelligence before the election. michael flynn step down this week. developers are the latest example of national concern about russia's capabilities and the insulins on the national security of the u.s. . knowledge,h expert keith alexander. the rsaelm, in town for conference. welcome to bloomberg technology. >> 50 the here. >> you are -- you have plenty of clients looking at what they can provide you. i want to ask about the executive order that many are anticipating. what do you want to see on this executive order? >> i doubt want to get out in fron

thursday in hong kong, i have a look the markets from stephen engle. stocks facing down arrows early on after wall street's mixed session. looking at the main index for new zealand, down by 2/10 of a percent. and sydney futures are down, fairly flat, trading lower after yesterday. this was after a seesaw day that saw those health shares fell the most in six years. futures down in the early going. the big story is a developing one, a south korean court approving the special requests for the everest warrant of samsung's lee, who has been taken to prison and is awaiting formal charges and a trial that could be as long as 18 months away. executors say he was involved in bribery, and embezzlement, as he sought to take over south korea's most powerful conglomerate from his father. i'm stephen engle in hong kong. more coming up right now. ♪ ♪ this is "bloomberg technology." i'm caroline hyde. back to snapchat, setting out on their roadshow and they will be pitching to investors a more expensive valuation than any other media company we have seen before. a

anna: thank you very much, stephen engle. let's check out markets in asia. shery ahn is standing by. energy-related stocks are on the move. surprisingly choppy trading session is been for asian markets, as you mention with the boj now offering to buy bonds for the third time in a week. concerns rising over the sustainability of qe there. the session just progressed around the day and the nikkei ends up .5%. a different story for the cost beat. .- for the kospi surging more than $280 million in the month of february. the shanghai composite unchanged , although the hang seng is gaining .4%. the rate decision in about three hours, the taiwan taiex down .2%. the new taiwan dollar weakening for a second consecutive session. there's been this narrative that weaker yen currency's last quarter helped pick up inflation or cpi prices across asia. take a look at the rupee in india, strengthening ahead of the r.b.i. rate decision. consensus is for a cut. that's not the issue right now. the issue is, is that the last cut in this cycle for the r.b.i.? that's what investor

vo, andybacks from no stephen engle and are talking about the dollar. if you get fiscal stimulus, -- goldman sachs and you need to look through these issues and go along these opportunities on the dips. fourth quarter, was a miss. you have the conversation,, a very full and frank conversation, about where they are. they are in the eye of the reformation storm, in the middle of the reformation program. 1.36% higher. watch is down, nearly 11%. the market was looking for a drop of my .5%. they have told us november, december, january, growth in china. matt miller is covering the deutsche bank story. the debt trading missed. that is what is weighing on the conversation. the buffers of capital are up and the losses were reduced. of ais a ceo in the middle big change. i am off to digital radio. let us handed across to matt. manus, thanks very much. i'm standing here in frankfurt in front of deutsche bank. let me first ask you about fixed income trading. they did not meet expectations. i think expectations were about 30% on the street and they only got a gain

stephen engle joins us for more on that. is he going to move forward and in fact go ahead and label china a currency manipulator? can they even do it. the yuan has risen against the dollar. >> that is not part of the argument. you are using facts. not all facts, let it go back to what steve mnuchin said in his hearing, confirmation hearing, to read where he lies in between reality and what the president might order him to do. if confirmed, i intend to review the issue of china's currency manipulation. not really hawkish as far as yes, we will do it on day one. i believe under the framework of to rules, he has until april make this designation, and even then it is a nonbinding issue. it just authorizes the treasury department to engage china in talks about remedies for punitive ways, but also it could be laying the groundwork for establishing the evidence for tariffsunitive or a border tax come us of that would be the first up and what could be a lot of pain between the two countries. whether its parks and trade war -- playf:

shery: stephen engles, thank you for joining us with the latest on china's gdp growth numbers. we do have the national people's congress coming up this weekend. now from asia's biggest economy to the number three economy, report thected to slowest growth in more than two been years. growth of around 6.8% in the year through march, and this includes the time when the ofernment with a true 86% the cash in circulation, so that will be an interesting one to watch. onsef: let's put all of this a chart to get some additional perspective on the bloomberg. the story with india's economic growth, you can see this 6% estimate line. you can see how it has performed on a quarterly basis back to 2012, so for the most part, higher than 6%. what is interesting is that credit suisse put out a fresh note that said india could be a key beneficiary of global gdp 2017, which may be the highest ince 2011, improving pmi's the u.s., eu, and china as well. still with this is the chief economist of abu dhabi commercial bank. what is india's economic growth going to look like? is expecting a sharp decel

stephen engle is here with more. apple is losing that piece of that pie? be looking atan people who are in the replacement cycle and tended to be early adopters. they like the cachet of the apple and the high-end features. waiting for the iphone eight. also, newer screens expected from that, but what has happened on the fringes in the meantime is the domestic players taking over the top spot, like oppo, huawei, vivo, lenovo. take a look at the top three, , 48% of the, vivo smart phone market, so nearly half of the market. look at that unit growth in 2016. , 122%han doubling, oppo up. apple sinking 23% in unit growth , 9.6% market share. yousef: what about companies like samsung? it wasn't too long ago they were among the top vendors. what has gone wrong? stephen: the numbers for xiaomi do not look great. shipments were down, 40% in the year, down 36%. these competitors like oppo, which offer higher into features in the phones like curved or flexible screens. they have been outselling. they also have a widespread retail network where xiaomi has been online

let's continue the conversation with the upcoming inflation figures out of china with stephen engle. talk about a higher base affects. is there weight to be put on these numbers when it comes to determining these prices? stephen: it is interesting because we have already seen that the authorities are starting to do targeted tightening. the benchmark rate has not moved in a long time. the requirements of banks have not stopped in a long time, but the authorities are moving to much more targeted tightening measures not to affect the broader recovery. they have to talk about ppi. i want to bring up cpi inflation. it is well below the government's four-year target, but it is still creeping up to the highest expected since may of 2014 which is 2.5%. we are up to likely to .4% since january of this year. 2.1% since december. high demand raising those prices ahead of the lunar new y ear. food prices coming down a bit so that has maybe tempered what could have been a higher rise. now to ppi, this is likely rising, quite sharply, for a fifth consecutive month after four years of deflation. th

assets question mark we were talking to stephen engle and a little earlier from citigroup. he is still listening, coming back on a minute. he was talking about a fire sale in u.k. assets. doesn't look that way to you when you look at u.k. real estate? guest: there is a distinction, there is a interest in looking at everything. financial markets are much more liquid and they are signaling their perspective on what pricing is likely to look like. there is still a significant demand from sovereign wealth funds in particular. large investments and stable different view on interest rates and looking for a stable home to park their cash. of middlesee lots eastern investors and other players coming into the u.k. market? guest: we have seen that. one of the big office buildings here is being sold by british land. they are expecting to find demand. there is [inaudible] the matter what happens with brexit. there will be continued demand for real estate assets in london. we do not specialize in offices in london so we do retail. manus: only look at your business and the geographic com

we will speak to the stephen engle will join us for his first interview of the day at 11:30 u.k. time. let's get the banking financial story there and moved to steal and industrials. numbers from the german steelmaker, industrial group come are reporting numbers in the midst of a corporate transformation. first-quarter profit increased about 41%. steel prices recovered excluding one-time items. theose to 329 euros above estimate of 318 million. thanks to the stimulus in china. the biggest consumer of alloys is china and that added some stability. we will speak to the ceo later and ask about diversification of the business and what is happening in the chinese market and how they operate in the americas right now with president trump. that's coming up later on this hour. manus: let's talk about the risk in the market. the dollar is rising, that's the driving force. they seven of a rally in the dollar. .2%.ritish pound down by we begin to understand the turnaround in the bond market. we looked at what we popped in here. we had a rally for four days. anna: we had four days were yield

stephen engle is a veteran of these national congress sessions. oft is the significance targets this year? stephen: the npc has regularly been kind of maligned as a rubberstamp session of parliament, but it is important in the work report that will be delivered on sunday, is when he gives the promises and marching orders for the year and sends a list of targets. many different targets, including the also much-maligned gdp growth target. in the past, it was a hard and fast target, but they started to loosen the parameters. last year it was defined as percent-7%. they delivered in the middle of that, 6.7% for the middle of the year. bloomberg has surveyed a number of economists to find out given the stability receiving economy -- we see in the economy and the efforts to rein in credit growth, will they redefined that target? the majority, or the median survey results say they are likely changing the verbiage this year to about explain 5%. it sounds like i'm missing -- mincing words, but it would be significant. it would be a broader definition. it w

engles,sk stephen joining us at 11:30 your time. guy: matt, we are anticipating we will be seeing a positive start for european equities this morning. the ftse 100 in positive territory. the cac opening up fairly strongly. less about index levels and what is happening with individual names. let us find out what is going on. manus cranny. , thanks.y johnson story.look, there is a the dollar is strong. that is a critically important thing. the dollar is up. we have a big day inside africa today. they seven of the dollar rally, but what does it mean for equities? you have to ask yourself. nejra will take you through the breakdown. industrials up .8%. is going to catch the market. totale is front and center. will50 possibility le pen go to power. it is a value trap in europe if you think european banks offer value. ifsuggests otherwise even dodd-frank is reduced. this is a disconnect. the blue line is the five-year paper. it is the bond spread, so the blue is the bond spread between germany, sorry, france over germany. cdx's are swaps.