Not to protest the Democratic Convention opens the iraqi of booing at the first mention of Hillary Clinton. Following on twitter. That is my handle rishaadtv. Low pointngapore at a in the taipei on that line. Heres a look at what is going on and having a look. Seems like the bears at the moment, have to have some. The selling certainly appears to be back. We have the fall of record highs on the s p 500 during mondays session in most asian markets following that lead, particularly the nikkei with crude trading at a threemonth low. Malaysia coming online done 1 10 of 1 , singapore up one half of 1 . We had singapore with factory outputs do today. Hong kong in the philippines coming through with trade. Korea is pretty flat. We have seen a little bit of an expected read on secondquarter gdp coming through,. 71. 7 of 1 . The market is doing quite well coming under pressure on that weaker oil price in japan being down because of the yen strengthening. Southbank for earnings in the u. S. , but we are seeing a lot of the expert stocks coming under pressure with toshiba leading the declines on the nikkei. A little bit of money coming off of the table there. The oil price has been that they focus. We are seeing a lot more coming online and we see that 2. 4 slump coming through in the new york session. Just a slight rebound coming through in asia. The oil price up by 2 10 of 1 . We have seen a little bit of a comeback in gold after two sessions of losses, seville snapping the decline half of 1 in the asia session. Looking at the japanese yen very much in focus as we hear reports from the nikkei news that the stimulus package could in fact be doubled from earlier reports at ¥6 trillion. The yen up by 1 . This is expected to put more downward pressure on equities today. Rishaad lets look at our top story, verizon confirming it is buying yahoo s web assets for 4. 8 billion including yahoo s real estate, excluding some intellectual property and alibaba and yahoo japan not included here. Says she isr planning to stay on. Immediately, i have two priorities. One is seeing transactions to the close, but also watching the value of our asian asset and equity stakes we have there. Moving forward, we will ultimately figure it out. Rishaad verizon may be the winning bidder for the share of yahoo but plenty will be left over after the sale, at least japan. In Marketing Manager is with us now. Lets have a look at this. It is extraordinary. What is yahoo japans future . You are normally in tokyo, so you are ahead of things there. This is about one third of the company. Softbank has one third of the company also that it controls. Softbank, a Japanese Investment company will have controlling stakes. Anyone that wants to come into yahoo japan will have to navigate around softbank. Softbank controls the border and gets to say what happens in the future. Yes, yous state will remain with yahoo , but it is not clear who wants that asset. Rishaad it does seem that yahoo s remaining assets will remain, for the time being, with the Holding Company. They also have a big stake in alibaba, which has a stake also. You are going to be very close to softbank if youre going to be investing in the remaining company. I think there is intellectual property that will be left over also. Marissa mayer has cap this deal selling the core assets to verizon and unifying two of the early pioneers of the internet, yahoo and aol. Verizon bought them earlier. Aol, that is not exactly a winning company. Yahoo has not been a winning company, so perhaps we can get these two, what do you do when you put them together . They have been struggling. They have been struggling to compete with google and facebook on online advertising. They are two companies that have their best days behind them. Now they will be unified in a very interesting way. You are teaming up to former google executives Tim Armstrong and Marissa Mayer and yahoo , see you are providing combining a sales guy and an engineer and they will see what happens when they combined these assets. They will have a bit more scale. Tokyo, butrmally in with us here in hong kong. Thank you. Lee takingo robin talks to take on the Video Streaming Service i. T. It was in negotiation with six months in the making. We have been having a look at it and finding out why it fell through and there was some intense Shareholder Activism. Haidi that 2. 3 billion offer came through in february of this year and there have been several rounds of negotiation and have. Ailed to reach a negotiation the Shareholder Activism, essentially we had a Hedge Fund Partner that holds 400 million s shares and were painting this as a sweetheart deal, but there is a conflict of interest because he is on both sides of the transaction, the ceo but also trying to buy out one of the assets. They met last week to say devaluation is way too low. This 2. 3 billion bid value should be 2. 8 billion and should be valued up to 5. 8 billion on tracks with the local rival, the 4. 8 billion valuation alibaba bought back a few years. The Balance Sheet is minimal compared to the longterm potential this company has if spinre to spend it off it off on the mainland. Rishaad theres a lot of talk this is not exactly about shareholder discontent but more about changes in the Global Policy framework in china. Haidi that does pose another problem. It is not necessarily just about the Shareholder Activism even at all, saying these delicate torre changes make it difficult for this idea of spinning off i. T. In this unit as a separate company. It is very hard to list a company that is not making a profit. As of june, the company with 20 million paying users still has a lot of money coming into it. They say the future will be a Huge Investment for i. T. And will be negative when it comes to current shareholders. Rishaad when we look at this, it is also a situation where they are trying to cut costs. Haidi you know, things have fallen back in terms of their financial situation. There is a when it comes to advertising revenue. Investigationn regarding the platform. There was criticism over drug makers or pseudodrugmakers soowed to advertise on baidu that took a complete shock of their advertising revenue and they are also looking for cash, not spending so much on the streaming service but everything from driverless cars, artificial intelligence, internet services. They have been trying to diversify. Without this, they are without the 2. 3 billion cash injection. Rishaad thank you. Taking a look at some of the other stories we are following. Shares,e are talking down over 3 , pulling back up. It was not the best quarter for chipmakers, prices falling, a sluggish demand in the second quarter. Having a look at the numbers which they reported. Of these three metrics, we are talking about top line all the way to the bottom, net income standing out as the biggest variation from the mean. The company does expect for that to pick up in somewhat surge this quarter with new phones and smart phones coming to the market. A little bit more upbeat, i guess. Take note that all of these recommendations were made before this current set of assaults, so watch for changes over the next 24 hours. Lets move things along, talking , jewelry. Ing, bling the largest julie trader jewelry trader is looking to the u. S. The company is looking to start a wholesale, totally new wholesale business in new york with polished and rough diamonds to other retailers. This is different from its existing unit which is called brand of fire, the own of diamonds and jewelry. Not too optimistic over the companys shares. It has slowed down his campaign on the mainland and in hong kong where retail sales have fallen every single one sense late 2014. Lets wrap things up and have a look at nintendo, falling not as much as earlier, down 5 at one point but now down 3. 5 . Shares getting below 22,000 in the opening minutes, the decline thattop of daily ond you are seeing come top of the pokemon rally. News,r piece of related capita Group Companies have cut their state in nintendo to just over 17 . Investors and analysts are reassessing the earnings given the fact that nintendo tends to downplay that. Nintendo, how much really what they get from this report midweek . They are downplaying the impact for now. Analysts are very interested in the stock, especially the recent changes to these recommendations. Jpmorgan is waiting to buy on the stock. Rishaad thank you, david. Coming up later, reviewing the rewards. Are some of the reward programs losing their appeal . We will have a look at the asiapacific. Verizon stepping up the yahoo core business. To our toptting back company story, verizon confirming it is fine got a web assets of 4. 8 billion. Is this a good idea for both companies . Something, talk first of all, why do this . That job, the feeling someone had to buy them eventually, and verizon were the ones in the queue. The question, what will they do with yahoo s assets . Rishaad exactly. They have been trying to right the ship for a number of years. You have them with their aol assets, another struggling company, arguing it could be more of a struggle for that ship to be turned around, and then yahoo which is another struggling asset. That is the thing. Verizon is buying up all of the title Internet Companies that dialogue Internet Companies. They may have a plan. I see two options for them. One, will not work in one may work. Yahoo still has about 600 million users, still have services that people are using all of the time, even though they have not been able to move toward tumbler, it has been something quite popular. Maybe they tried to go teteatete with Something Like google and facebook. I think it would be difficult to succeed. Rishaad go to the one that you think would have a better chance. Advertising. Had advertising skills, a wide variety of people. Yahoo a very much skilled in advertising. These are as that you do not realize are as in the start clicking on them. Verizon is building up more and more news sites, media sites. People theylot of can reach, even though there is nothing known under one single brand. They do not have the brand name, the unique recognition of something my facebook or Something Like google. Rishaad by joshua has a huge Brand Recognition but john but yahoo has a huge Brand Recognition. Yes. 0 million, it has a bit of painted history. People think the brand was huge back in the mid to thousands under microsoft when they were going to buy them for a small fortune. Rishaad 44 billion at that stage. That is just 1 10 of that. You can argue, 600 million users for 4. 8 billion, this is cheap in terms of customer acquisition. That is a pretty good value. Exactly. Maybe it is a gamble. If you have the money lying around, maybe it is a gamble that will turn around. I do not think people see yahoo necessarily stay with the brand they are going for. People do not necessarily think about this every day, this looks like advertising in news sites. They may try to advertise yahoo new services. When this deal was announced, i was thinking, well, they bought aol. If you take a look at their home pages, they are very similar, same services, same audience. Araiza may be going for a slightly older internet demographic. Before an maybe get slightly older internet demographic. The question, what will they buy . If they are just selling advertising, where will it go . This is the question verizon has to answer. People will be watching them very closely. Why are you buying a company that is considered defunct . Rishaad lets move to what is left of yahoo and that is that this that verizon has not japan, alibaba and yahoo and also some intellectual property as well. Do you know much about the intellectual property . Very little. I was surprised how much intellectual property yahoo had in the first place. I always considered them purely in internet focused brand. We have seen generally a rush to buy i. T. Companies purely for their i. T. I do not think verizon necessarily sees that is something going on. This is also going to pose some difficulties. What did they do, do they remain as a Holding Company . Quite a possibility. All of the Online Services will go to verizon. All of the i. T. And that will go with it. We will have to see what is left behind. Rishaad that is what im saying. That is the rough company. They may be sold later on. You never know. Rishaad is that the main idea . There cannot be any other rationale for holding on to them in the long term. What would you do now yahoo do now . The stake of alibaba is the leader strongest asset. Rishaad at the end of the day, does this represent a wider trend . For verizon . Rishaad for verizon, telecom . Carriers,ff, traditional carriers, particularly those like verizon need to find a way to find more market shares, more business to invest in. The market is stagnating. They are limited in what they can do. Technology will become obsolete. I think we will wait to see what happens with verizon, and to that extent, it may well be a one off. It remains to see how they will succeed. I wish them luck. I am waiting to see. I think this could be a very difficult thing to turn around. Rishaad very good. Contest as they avoid a standup with beijing over the South China Sea. This is bloomberg. Rishaad you are back with trending business. Asian nations avoiding taking a gh stance on South China Sea territory. We have been looking through this. We did they actually say . They came out with what manila would say, a tepid statement, appreciating the stronger ties with china, but in reference to maritime disputes, they did not reference china. What they did say, they seriously are concerned of the recent Ongoing Development expressed by some ministers on the land reformations and escalation in the new area. We also heard from chinas minister who gave this statement. This award given by the tribunal amounts to prescribing a dose of the wrong medicine. It seems that certain countries from outside of the region have gotten quite worked up with a high fever, but such a situation will only do harm to the lawful rights and interests of the countrys in this region and will only meet with concern and resistance from countries in this region. So, they did not give the statement they wanted, the philippines. They would support the case years ago, and what they wanted from asean was confirmation in backing the ruling. At the end of the day, no surprise they ducked this. How much of that was down from beijing on these countries . Absolutely. The way it works, they need kansas since consensus and it is right difficult to corral all of these numbers. You ties between kumbaya do cambodia are very tight and effectively divide and conquer, beijing giving cambodia 6 million in aid in some say that was seen as a gift, a thank you to cambodia for denying that. Ahead, the unity pledge, Bernie Sanders calling for his supporters to back Hillary Clinton. . C sv rishaad asiapacific stocks following after meeting records. Is putting out a fiscal stimulus package. Or is in confirming it to buy youngs what assets for 4. 8 billion. In some intellectual property. Will become a new publicly traded Investment Company which mercer mayer will stay on to oversee. Shares on the way down and south korea. The apple supplier saying selling prices of chips have almost half but are expected to pick up in the Current Quarter due to the release of new handsets. Strata the market open here in hong kong. It does look like in the early session, we are seeing weakness coming through particularly from hong kong. China doing quite well on the open, up to 3 . We see these Energy Players come under pressure. They retell a beltre national was a strong performer in hong kong yesterday. What a flat there on the old and. Flat in korea. A lot of worry about what is actually going to be in this we could see and sellers moving once again. Also that revis in the yen today. Those seeing some of stocks that did well yesterday coming under pressure. The all show you and mom market being hurt. The philippines has just opened up and it is higher. It will be releasing trade data today. Japan just a bit of a take up there. Marissa mayer saying she will retain control of the asia businesses. And softbank getting a jump there. Sprint in the u. S. Coming through with a strong increase. A look at oil stocks. The crude price falling 2. 4 in the new york session. That explains downward pressure coming through on Oil Producers in sydney. Quickly checking in on the yen. Strengthening. It is now up by 1 . Getting to the Democrat National convention, fallout of the email leak. The convention opened to protest and boos coming from standard supporters. Are joined live from philadelphia. Bernie supporters seem to be ignoring his pleas for unity. Absolutely tonight at just under an hour, senator Bernie Sanders will address this packed convention hall, including his own delegates who were actually billing Hillary Clinton earlier up. Chanting lock her similar to the chance we heard last week in cleveland at the republican convention. These supporters are still reeling over the Democratic National committee email leaks theare very disappointed in selection of tim kaine as Hillary Clintons running mate. Clearly they differ on a keep policy area, the transpacific partnership. Rishaad what other reaction has there been for the chair resignation . Although she will be there. Of the clinton sources on speaking with and the message they are pushing out is this is just one and they fully participation anticipate the party will be unified. A lot of pressure on senator sanderson night to bring together the Democratic Party again. Rishaad what about the big headline speakers . Who can we look forward to . We will also be hearing from Michelle Obama. Last week in cleveland, there was a dustup when Melania Trump seemingly took a portion of the Michelle Obama speech from 2008. But look for the democrats begin unification process. Many college a contentious primary battle. On sans lets check china. Margaret is here with me now with a look at how the performance. Are we looking at this as a month on month or year on year raises . What does it mean if it is a year on year improvement . A year on year basis. For stance chinas thickly. It is great and encouraging for the company because it has run only reached that bottom. Thatery interesting things came through, mass markets finally reached a stabilized level. In the company is doing very well in terms of cost saving and focusing the massmarket business, helping elevate that margin at a market leading level. Rishaad you cant miss it. Can we have a look at it . It is paradisethe. How does that change things here . A beautiful property. Its outstanding. Furnishings are certainly very detailed. In very much reflective of paris themes. Mustseene of the more features, really complementing the venetian. It does join that cluster of hotels. More casino results coming through on board falls. That has really hurt some of the hotels. Rishaad low discounting going on. Fierce competition from there. We are hoping these new resorts could drive revenue rather than create potential price wars. Sandsd how is marina bay faring in this . It was a tough quarter for singapore full massmarket gaming revenue failed 9 . A could be potentially onetime occurrence based on management comments. Massmarket could potentially come back given the fact they are planning on another one house in hotel room tower. Rishaad one yahoo employee says shes not going anywhere. May after speculation she step down. We asked what the deal means for yahoo . Big challenges weve had is we have reinvented our products. We are very proud of where yahoo mail is today. Same for news, sports, finance. We had about eight cornerstone applications. We really need more distribution. For us, verizon has tremendous mobile distribution. About that excited but overall, it represents a huge amount of scale in opportunity for verizon. What role do you envision for yourself question yourself . Immediately, to priorities. One is seeing this transaction through the close but watching our asia and assets. This process has been a bit different because of the oneonone acquisition. We have been in the auction process. We will sit down with marnie and tim and verizon this week. Importantoo and its to me to see it into the next chapter. Restorented to greatness. Have you personally feel about this outcome . I think yahoo is a company that changed the world and not Many Companies get to change the world and if you think about it, before yahoo comedy internet was a Government Research project. They humanized the web. They popularized search and realtime media. That is really amazing. To me, it was how do we take those historical moments and influence in harness that into mobile . Were really proud of where our products are, the way we transitioned our users. We have 600 million users coming to us through mobile. That has tripled over four years fulls that we think it because of the quality of the product. To take this incredibly powerful company that has change the world, its important. And the transaction isnt just about the strategic future for yahoo , its about unlocking value for our shareholders. We feel we have really achieved that outcome. Lets check on some other stories were following. India planning steps to rein in highfrequency training. Authorities can bring mandating a fraction. Expedition between computer and manual auditing could implement the final guidelines within three months. Coming after calls after action. Halts calls for action. Authorities saying the city failed to meet its own high standards after criticizing banks for not properly controlling money laundering. The regulator went to one mdb after allegations billions of dollars were improperly siphoned off. Japans biggest banks are making good on their pledge to trim stakes and client companies. Selling a combined 2. 4 billion. F social cross shareholdings this could prop up earnings being squeezed by negative interest rates. Results this week. First35 years after the Airline Loyalty program was introduced, is it time for an overhaul of the system . Hear from a global brand and marketing strategists. Rishaad enter a lengthy 7. 4 stake, making it the biggest holder of listed shares. Indian railways planning to sell some 37 billion of debt to help fund its modernization. This is the worlds fourth largest railroad operator. It will be spending about 127 billion by 2020 with 30 of that funded by dead and another 30 funded by government spending. The offer to buy comics and of us raised to 1. 2 billion. A30 3 premium in march. Yorkerhoping the new will win over carmichael shareholders. They rejected earlier shareholders. Coffee, sandwiches, to hotels and flights. Plenty of Loyalty Programs but which one is getting it right . A partner of branding consultants. First one started off with american airlines. American airlines started their program in 1981, the first Loyalty Program. In exchange of you give me some point and i spent my dollars there. I dont think they are linked to true loyalty. Go on a flight and collect the miles, im only spending it on a particular airline. I buy 10 cups of coffee from you, i get one free. Im not sure thats true loyalty. I think Loyalty Programs need to drive toward two main benefits. One is the rewards aspect of i give you my business, you give me some in return but its that recognition of im a better customer for you so i get better service, better rishaad products. Would it be best to give people cash back . Thats what credit cards do. I think it depends on your objective. Although im not sure thats true loyalty. Rishaad what is true loyalty . Thats the fundamental question and who is engendering true loyalty if anybody . I think loyalty is very sticky and that means no matter what you do or within range, i am going to give you my business. Loyalty programs help change peoples decisions on the margins. Will i stay at a hotel that is less convenient to my meeting because i want to stay with a Certain Property . Will i connect and to stay on my Favorite Airline because they take better care of me on the flight . That is where Loyalty Programs really have a role to play in business. Rishaad you have got to build up some sort of relevance. Who is doing that and doing it well . There are some programs doing it well. What starbucks has done is very interesting. The have tied it back to true value you are spending as a consumer. They have great linkages that to the starbucks app. That allows them to drive towards more personalization in the future. I think they are doing a great job. The products they sell are very andonal and therefore, another one i find interesting is amazon. What they do with amazon prime, you pay to be a loyalty member and is that really a Loyalty Program . I think its a new wave of Loyalty Programs. Rishaad paying for the privilege of loyalty . Early accessing, to goods, a new, interesting model coming into the market. Sharing the economy uber,the likes of airbnb, what are Loyalty Programs there . Airbnb is about finding experiences. They are targeting a different consumer, more of a leisure traveler than a business traveler. They probably dont need Loyalty Programs but if they wanted to go after that lucrative business traveler, they need to influence decisions on the margins. Isr, if you look at what happening in china, i think thats an opportunity for some sort of loyalty or engagement program. Words of them colluding now. A worldly program might be a good way for them to separate each other. That might be one way to shift the balance of power. Do they actively therefore targeting millennial customer . I think millennial customers will be an interesting battleground. On one hand, Millennials Want experiences and that means they are less influenced by the reward side of the loyalty equation. On the other hand, they are actively social digitally and in they areular lives and connected to the Digital World and they like to share status updates. The status of recognition by the Loyalty Program might be interesting. You are going to have to rework the equation. I think that is a balance again reward versus wrecking action. Our work has found the wrecking mission side of the equation is more important so companies who have the Loyalty Programs here need to dial up that side of the equation whereas in the west, something free or a discount might be more interesting for the reward side. Rishaad lets end where we started, american airlines. How is the Aviation Industry . See where Delta Airlines has gone is where they where they reward you based on spend. Whether you are sitting in the back or front of the airplane, theres not that much different in marginal cost but you want to reward people in the front of the plane more so delta has a Loyalty Program with the more you spend, the more you are. Other things like what cafe has done, it will be something around point space. The worst thing is where you reward people for the number of flights you take. Rishaad thank you very much indeed. Next, no news is good news after going into chinas latest edict. Rishaad china has ordered a major Internet Company to stop all major news reporting. Lets have a look had this. Bisping look through the prism of social media. David a few things on this story. China is basically the ending banning . 10 from having their original service. Take the controls from news boards and take that and report. Its better to shut down. We still need the news but what is the point of having the internet if this happens . Another one says are you afraid of the internet . Last one here, speechless. It seems the rule now is to remain silent. Rishaad a good way of getting your review out. David we have a twitter reaction saying how can you control over one billion users who make their way outside china and talk about this . Rishaad original reporting is one thing but being on time is another. Rishaad the first aircraft around the world. And an epic 35,000 kilometer burning a single drop of fossil fuel. . C sv rishaad this is trending business. Here is a look at what we are watching. Investors weary ahead of set. Bloomberg expects further stimulus in japan. Supportersers ing being to fly first aircraft around the world using only the sun. A bit of nervousness ahead of the boj. Look at what is going on. It does look like the day for asia markets. No change expected from the fed ,ut we did see just in the u. S. Record highs. There has been a turnaround on the share market. This is despite