comparemela.com

Previous leader. That is certainly something we are going to watch out for here today when it comes to how that plays out in malaysia. Overall risk sentiment is cautious. David it doesnt help that markets here in hong kong and china, you have liquidity issues look exacerbating these issues. Here are your equity markets that are open. On the lighter side of things. Down about. 25 . Kospi up. 25 . Putting anything else together, we are on a threeweek streak of declines for asian equities. S p futures as you can see,. 5 down, pretty much where it has been holding all morning. Have a look at some other things we are tracking here as well. We talked about dollaryen today, which we will get to in a moment. Southeast asia is looking like this. The latest market to open is indonesia. A big day friday for philippines, reversing some of that now. Malaysia also little higher. Southeast asia as well, mx is your ticker for this benchmark. Also on three weeks of decline. As promised, look at dollaryen. Dollar one and your majors as well. Sterling here, 106. 81. That is pretty much all you need to know about Risk Appetite. One month high for the yen. Leave the markets here for now. Su keenan is in new york with an update of the first word news. Su thank you. We start with north korea and the u. S. Both countries have a very different version about the success of Nuclear Talks which took place in stockholm this weekend. The first meeting and eight months was described as washington as good discussions, while pyongyangs version was the opposite. Talksp Nuclear Envoy said did not meet negotiations and broke down. This came after a string of nuclear launches missile launches including one on wednesday. Feintexit, the prospects of a brexit look even more so after Boris Johnson repeated his vowed to take the u. K. After the European Union at the end of the month one way or the other. He told french president Emmanuel Macron that the eu should not have the mistake that i believe in the you cable stay after october 31. Johnson said quote, we will be packing our bags and walking out, unqoute. China unquote. China dipped a bit in september. Official figures from the pboc fell below estimates to just over 3 trillion. But boosted boosted its gold reserves for a 10th straight million t 63 the latest on the fed now. The Kansas City Fed president defended voting against rate cuts at the past two meetings, but she would support another cut if there is evidence of a sharper slowdown. She said the u. S. Economys moderation is in line for her outlook for the mediumterm and adjusting policy might be appropriate if the data were to indicate a broad weakening. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan. This is bloomberg. Yvonne we are covering two of our top stories today. China narrowing its scope in seeking at u. S. Trade deal, and the latest with the hong kong protests. In hong kong is and selina wang is in beijing. We are counting down to trade talks at the end of the week. What has changed . Selina things have taken a turn for the worse. Sources have told bloomberg that offer from the chinese side will not include commitments to reform subsidy policy or industrial policy, both which have been longstanding complaints from the side of the United States. So the scope of a possible trade deal has narrowed significantly and positions are hardening on both sides. We saw a few months ago a draft that includes some commitment on both fronts, including lessening support of the made in china 2025 plan. But this latest turn does not come as a surprise, given that china views its industrial policy as critical to economic security. We talked about this issue to the china chair of the csis. Take a listen to what he had to say. I think this is a leadership in beijing is not fundamentally committed to real structural economic reforms. And so, i do not see the trade war is leading to that outcome. In fact i think it may lead to the reverse, which is a real digging end of their heels and a confirmation of a more hawkish line the u. S. Is hellbent on containment of china. Selina meanwhile you have trump repeatedly saying he will only entertain an allencompassing deal. So right now the best Case Scenario is we get a very limited deal that paves the way for future, broader negotiations. David a turn for the worse. That takes us to steve. That is certainly what happened when it came to these protesters. Stephen yeah. You know what . That person was just talking about digging in heels. Both sides in hong kong have been entrenched in their beliefs, digging in their entire legs, if you will, and neither side giving in. Both sides assessing what tools disposal tot our get our end demands met. Well, the government of course on friday invoked the beginning parts of Emergency Powers, banning facemasks. What did the protesters do . They ratcheted up the violence and vandalism. Theres no end in sight now, and theres an attack on businesses with any perceived ties to mainland china. Any china in the name of companies, like china mobile and some banks as well. So there is this standoff that is simply escalating and escalating and escalating, because neither side wants to give the perception of giving in. So that is where we stand right now. Yvonne all right. Steve, thank you. Also selina wang with the latest. Lets bring in the chairman and ceo of capital wang in hong kong. Lets start on the chinese side, narrowing the scope of the trade talks and what they want. It goes to show that china perhaps thinks they have more leverage. Do these impeachment inquiries weigh on the trade talks . I dont think so and i will tell you why. Trump does not want you thinking he has lost leverage because of a political issue. He will not let that be any turning appoint turning point. I have a different opinion than people talking about the narrowing of scopes. It is impossible to get a full deal done. How do you police ip theft, tech transfer . These are big, b, these are big, big words that no one has any solution for. Wouldnt it be easier to get a headline if you narrowed the scope of what youre looking at . Thenou can get a headline, you can talk more friendly and push out this time element. Time has been the thing that has been pushing all the emotion into the deal. Thenu can stop the clock, i think you have a rational point of view to move forward. Also, it is a smart move for the trump to play a trump card going into the meeting. Why is he the only one who can turn the tables a day before the deal . So i dont think it is much. I do not think it is some major Inflection Point we cannot come back from. I do not think it is all or nothing. I think it probably leads to some sort of an immediate headline that is easier to get on a smaller scope. David before we move on from trade, that then makes it easier for us to maybe get something. Do i then get excited if and when we do get that . Brett the markets actually should not applaud a deal at this point. It has been going on for so long, i dont think anyone knows where the deal started or where it will go. But it is a war of words, it is just headlines. But we sentiment the way that it is and everything going on in the world, it will be applauded, and it will take the uncertainty out of the market. As we all know, uncertainty is the killer of all markets. So if you get some sort of idea of moving forward, you get buyin from both sides, you get the language to be more friendly, and you get a baseline to work off, i think it is good. Yvonne is a positive if they further delay the implementation of tariffs . Brett this is kind of a silly question, what have they ever actually put the tariffs in . Its heres the deadline, we get close, then we push it out. Trumps tactic is hard to get your hands around, which is made it difficult for the chinese to negotiate against because it is a moving target. So yes, i do think that if we get to a point where we can have a headline, i do think the time element gets taken off, and i do think this whole this huge onerous idea of these 25 or whatever percent tariffs coming in, that become secondary to the story. David i now want to ask you about hong kong. We heard from steve outlining about what a crazy weekend it has been. If you are just tuning in, and if you are even measuring how this has developed since june, it has basically gotten worse weekend by weekend. As an investor, what matters to you . Does it matter now . Brett it matters. It is concerning. It is very concerning to see the emotion that has been tied up in this, and the destruction that is coming with. I wrote in my notes before the show, i think this is a very critical moment where we have to understand that it is only words that solve this diplomacy that we need. This is diplomacy. We need to use the words correctly and they need to be very carefully chosen, because the tone of the dialogue is hugely important. Because violence is something that is just an emotional reaction. It is not something that gets people to the table. It is not something that gets any sort of sounding board. There has to be some medium put into place where both sides can get to the table and they can rationally have some sort of a deadline so that there can be any sort of so that we can monitor progress. Because right now the problem is both sides have their tact and theyre not communicating. In the second that something is given, Something Else is asked for. We are so far from the original ask right now that the escalation is so profoundly negative to getting back to some sort of square one. And i urge i said in the notes, i urge the major people, they need to create that platform. The tycoons and the people who are Business Leaders here i think have a strong voice. They have a very trusted voice in town. Those of the channels that i think need to leave forward a rationaln to get some movement and deescalate what is going on. Yvonne hold that thought. Brett is sticking around with us this hour. David investors growing increasingly bullish when it comes to betting on a bottom for the memory chip cycle. We will get a preview of thursdays earnings. Yvonne next, mixed messages and a muddled middle. We will look at what the latest u. S. Jobs report means for the fed. This is bloomberg. This is bloomberg. Yvonne the u. S. Payroll numbers are showing a worrying sign in job losses and manufacturing. 2000osses contracted about last month when analysts expected a gain of 3000. It is the latest indication of the beating u. S. Manufacturing has taken amid the glowing growing slowdown. Someone offered his thoughts on the jobs report and its implications for the wider global economy. Those who are looking forward a decisive message, they did not get it. This is a muddled middle, sort of report. Thateak enough to concern weakness is spreading from Global Manufacturing throughout the economy, but not Strong Enough to suggest that we are immune. So, i think it did not actually change anything in terms of the assessment. And what it is consistent with is what you would expect the economy to be at this late stage of the cycle. Everything is happening that many people thought would happen. Gdp growth would have to return to trend. Payroll would have to decelerate. We coulds stay around 200,000. Everyone made decent forecasts. People made it with reasonable analysis. Yet when it, arrives all of a sudden we are gripped by this end of cycle fear that this is it. It is not just about decelerating gdp growth, decelerating payroll growth, it is an end of psychodynamic. How do you keep the clear picture that it is less sinister than that . Is simple. The reason why people got really worried is because of what is happening in the rest of the world and this notion that this will spill over into the u. S. And i think the most fascinating thing about this week is not what happened to the u. S. On a standalone basis, but what happened to u. S. Data on the rest of the world. Germany it isnd now below 200 basis points. We have not seen that for a long time. And yet the dollar is near the 12 month high. So where you are getting a bit of inconsistency is not an u. S. Data. Markety u. S. Data, u. S. Data is behaving like you would expect. It is how the u. S. Data is relating to the rest of the world. And that is fascinating. Because it either means that the market now believes that we are going to get a very strange decoupling, or we have yet to see another shoe drop. In europe, in particular. David that was bloomberg go ahead, sorry. Yvonne you should have just gone on. [laughter] david do you want to do it . Yvonne you are back on holiday. I get it. David im still jetlagged. Close here to 100. Bond markets have one thing in mind, yields on the way down. Brett still with us. All right. The jobs report is always something tricky. What do you see . Brett i am going to take a different angle on this. I am going to say the number was, i think, in the middle. It gives not disaster. It gives some fuel to the bull Market Scenario of fed continuing to be accommodating. ,hat i like about it is that lets call it the Second Derivative of it, you will get a happy trump. He will get the cuts that he wants, and he may be to stop on that angle, focus on Something Else. Maybe he some small china victory and we get some rationalization out of the rhetoric out of the u. S. So, the other side of it is the u. S. Economy has not been as strong as anybody has been saying it has. We were here a year ago when i said who writes the thing that says aggressive raises, wait, stop the presses. We did not get it right, now we need to get back to quantitative easing. They have lost a lot of credibility in the last year on this ratcheting up, pause, political game, and being very coy with their words about how accommodating they will be. Its hard to use the word full employment, but maybe that is Something Else we should think about. Are we had a point where we are fully employed in the u. S. . At a level that will help wage growth . We can keep creating bottom of the cycle job that has no wage growth. That just makes the Unemployment Rate lower. So, i think people are happy with this. I think that the markets will respond well to it. I think that europe is the real fear factor right now as to what is going to go on. I do not think the shoe drops in the u. S. Or china, but i think it is europe we really have to be worried about right now. Yvonne so you think europe is what will tip the scales for the recession fears to materialize . Brett and a lot of people not like me saying this, but i do not think europe is important in this idea right now. I think it is really a china and u. S. The whole focus is really china u. S. I think europe has been a trouble spot for a while. The european banks did not do what they are supposed to do in cleaning up their acts and that will have a long tail on it. I think you have credibility issues creeping in. You have a lot of really negative sentiment around the group. And i think that it just gives probably reason for money to be pushed more into the u. S. And china. So, maybe europe just keeps hopefully some status quo and does not completely blow up. But then you have got brexit, you have got what will happen with at the end of the month, that will become another political charade. This has been going on for 3. 5 years now. These things are not helpful. Everyone is looking for clarity. And with all these moving parts, to get 27 countries to agree on something, and to get that clarity, it is very hard. David it always seems that europe is always on the cusp of collapsing in the past 10 years. Whether it is greece, brexit, what have you. But it doesnt seem to happen. Greece has been pulled back. So why should i think differently . Brett like i said, i dont think it is the top domino. It certainly plays a big role. But we could use the same for japan. Japan own all the bonds, own all beenoss and the job have full in. Theres a big banana peel there. We are going ahead with more consumer taxes. I think these things are very critical in the bigger word called sentiment. I do not think that either of be the strawg to that breaks the camels back. I really do think it has become and focus global market, that is where you are going to see all the real leverage and the power. Yvonne brett, thank you so much for joining us. Some lines coming through involving the Houston Rockets, a whirlwind of pr in the last 12 hours. David it is coming fast, a developing story. Some background. The Houston Rockets gm essentially putting out, or backing off this hong kong tweet. There was a massive backlash on social media. We will talk about the details of that, but the latest is we home state senators saying the nba should not aid chinas censorship. Yvonne they are saying the nba is quote, shamefully retreating on hong kong for money, according to ted cruz with that latest tweet. The latest twists and turns when it comes to the whole hong kong saga as well. Brett, any thoughts on this . Brett ted cruz is probably looking for some tv time. Right . He has been largely unimportant in this whole string of u. S. Political games. I will not make a comment on how the nba interacts with china. I do not know enough about it, to be honest. But what i would say is the nba is one group that represents a very important sport in the globe. And i think the nba is ok being sensitive to the fact that they are not there to make political commentary. They are they are to run a game and people go see it and it is not supposed to be politicallybased. So i am ok with them either saying something, rising above a political tone, because it is not what people need the nba talking about. Yvonne thank you for that. We have plenty more ahead. This is bloomberg. S bloomberg. David mixed and inconsistent equities. It is very clear with the fx markets are saying. Tv but you cang also tune into Bloomberg Radio from our brandnew hong kong studios. Tune into that. This is bloomberg. Bloomberg. It is 10 29 a. M. Think hong kong and shanghai. China which is signaling it is reluctant to agree to a broad trade deal at talks this week in washington. Su sources close to the negotiation say senior officials in beijing have told the u. S. The range of topics theyre willing to discuss has narrowed considerably. Premierold the vice willthe offer washington not include any commitment to reform industrial policy or subsidies. Many of honghina, kongs train stations remain closed on monday morning, after a week of protest and continued violence. Vandalism escalated after the government invoked a colonial era emergency law to ban the wearing of facemasks. Multiple demonstrations across the city ended up turning into classes with police. Clashes with police as protesters set fires and damaged train stations. Economy, payroll nubbers are showing a worrying sign. Job losses in manufacturing. Total employment at factories contracted by 2000 positions last month. Economists have been expecting a gain of 3000. The figures are the latest indication of the beating the u. S. Manufacturing is taking amid the global slowdown and amid President Trumps trade war with china. Suggests three quarters respondents there are unhappy about higher self tax. A survey by kyoto news says 71 of people are concerned about the likely impact on the economy after the tax went up this month the increase has been a key part of Prime Ministers shinzo abes policy program. Approval ratings for his government fell to put 5 to 53 . Global news 24 hours a day and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. Lets widen the scope and have a look at geopolitics or the latest in north korea since the two sides north korea and the u. S. Are at odds over the success of this nuclear talk that took place in stockholm of the weekend. The first we had meeting in a months. Described by washington is a good discussion while the pyung on envoy said negotiations do not meet excitations and slow down. The talks came after a string of north Korean Missile launches including the firing of a summary based ballistic weapon on wednesday. Seoul joining us from Yonsei University is Professor John delury. How much of this was a failure . Is a prettyollapse strong term for this era the big problem here is the timelines. The north korean complaint, reading between the lines, it looks like they said the americans showed up but they wanted to talk process. Maybe they wanted to agree to working level talks would proceed in such and such a fashion, where the North Koreans will he wanted them to put an offer on the table. I do not think the North Koreans stormed out, but they were dissatisfied from the day of talks. It is unclear what happens next. He would imagine after successive tries of meeting each other that they would maybe understand a little more about each others negotiating tactics , the mindset of each side. You think we have seen progress on basic assumptions . Is a great question. I think the problem is that the interpretation of negotiating tactics on both sides depends upon assumptions about the ultimate strategic intention. So americans are still extremely skeptical that north korea, the kim jongun is serious that he would move toward complete denuclearization, let alone get there. And the North Koreans are skeptical that the americans are really ready to listen sanctions, provide security guarantees that is the problem when these negotiators get in the room. Even though they are there in good faith, they are swimming in these deep pools of distrust on both sides. It is very hard for them to make progress. Yvonne and you were here President Trump talk about him like his friend. They met a couple of months ago which some say was also symbolic as well does personal some diplomacy work now . Make,re is a good case to at least when youre dealing with north korea given the nature of their political system. It is a very topdown system. That is an understatement. When you want to get the north korean system to move, you do need to get kim jongun and play. Ashley has billed himself over the last year and a half he actually has revealed himself to be more forward leaning or he is engaging and traveling outside the country. He has verbally committed to the goal of complete denuclearization. What often gets forgotten is that last year he announced to his own country, we have made a strategic shift and we are now focused on economic develop and. That was a very positive step by kim jongun. You do have to keep engaging him and you can only really do that at the head of state level. The problem is then this gap when the working level, when the teams get in the room, someone has to go first. And they have a very hard time with the sequencing. You understand this a lot more than most people. What are you hearing. Do you think the North Koreans actually want a deal or that they just want concessions . I think that the North Koreans are wary. Theyre not starting for a deal. They do have this timeline imposed by their leader, by kim jongun, that something needs to give, there needs to be some progress by the end of the air. So by the end of the year. They are working on the december 31 timeline. We can see, they walked away from sweden with these negative statements. Some of it is positioning. To be sure. But theyre not looking desperate for a deal. There is a theory that they are under such pressure from sanctions that the apsley have to get a deal and im not seeing that kind of behavior. That they absolutely have to get a deal. In terms of the urgency, i think the American Team was hoping this would be beginning of a series of these kinds of conversation. And the north korean message is no, we need to see your offer it has to be on the table and wants move more quickly on a gradual process of dealmaking. I think the North Koreans are ready for that but squaring that circle is very difficult. Maybe they made more progress than we can see. In stockholm. But externally it looks like they do not get very far. Seen, of late, north korea test out some Ballistic Missiles peered what can you tell us about their Nuclear Capabilities at this point. How much of sanctions hurt them . To questions, sanctions do not hurt their Nuclear Missile capabilities. If you look at the correlation, it is inverted. There has been increased pressure from sanctions going back to the late obama years and to the proper administration. The Trump Administration that dovetails during the. North korea has made biggest progress in demonstrate your missile and nuclear bomb cape abilities. Those capable filters are very good. Terms of what has happened this year those capabilities are very good. In terms of what has happened this year, they have been testing the limits, short to limit mediumrange cap abilities shortrange and mediumrange cap abilities. Diplomatically we want to get them in the position where they are not testing anything, which held for one year. In order to do that there has to be forwarded to fanatic progress. And for four dip omatic progress you have to listen the sanctions, which the u. S. Is very wary to do. So we will see what happens by the end of this year. Looking for to next year, the North Koreans, they do not see sanctions released in the cards, that i think we can expect even more demonstration and provement in their capabilities, in the military missiles and potentially backed in new clear abilities. A pleasure, always thank you raonic. Coming up we are talking the reserve bank of india cutting rates a fifth time in a row on friday. How much lower can ago. We will be live in mumbai to answer that question next. This is bloomberg. A quick check of headlines. China. Ston rockets in a backlash after us general manager tweeted supports for hong kong protesters. In a new tweet, daryl morey says he did not mean to cause any originalnd deleted the post. Chinas Basketball Association has suspended cooperation with the rockets and chinas bank and a sportswear band have both pulled their sponsorship deals. David hsbc bank is that it to have started a costcutting drive that threatens 10,000 jobs. Bank executives are question why they have some staff in europe when many of its actual highest returns are in asia. Topnew cuts would come on of 5000 redundancies announced in august. Hsbc could announce cuts when reports Third Quarter results this month. Sayse reports from u. K. Hong kong exchanges and clearing will raise its bid after winning conditional support from shareholders peered the initial offer value jealousy at 83 pounds . 61 per share. Was told byg investors we need to offer and between 90 and one had a pounds for wanted to be taken seriously. Apple changed his mind and approve a controversial app that shows police to plummet in hong kong. The app is called hk map. Live and is a mobile version of a website developer says helps users to avoid potentially dangerous parts of the city. It was initially rejected by the app store because apple felt and encourages illegal activity. It has now been cleared for sale in hong kong. A pulse check of markets. U. S. Futures, china futures, cash market. Japan is on its lunch break. David contracts in singapore, u. S. Futures off after a big day on friday, fairly risk off. That is accurate savings may cross markets which gets where we are within the eye which will talk about. Others. Talk about yield rocketslat reopen few hours for now. Yvonne the reserve bank of india says it will ease as long as necessary after lowering Interest Rates and for time to support the slowing economy. Joining us in mumbai our reporter. We did see a governor must have this mario draghi, whatever it takes moment. The market was still disappointed. Right, they work spec a larger cut. That did not happen partly because the r. B. I. Flashdance forward growth forecast by 80 basis points. Expecting growth be 6. 1 . Delivered 135 basis points on rate cuts this year, the most progress of the region. The highfrequency traders i fricassee indicators suggest that pass rate have not set into the economy. Consumer confidence has taken a beating because of growth and joblessness worries. Credit growth is not happening. The shadow Banking Sector is in a crisis. Apart from these rate cuts the fiscal policy levers have been checkouts tax handouts given to carpets. The big question is are these good enough to revive growth. Currently it does not look like an expectation is that fiscal and Monetary Policy will help to ease in the coming months to get growth near 7 . The negative output gap is still widening. And i near bond, the questionn, is how long before they can run out of ammunition, i guess that is down to zero. But directly how long before it becomes, productive for the r. B. I. . That is a good question. We put that question to the governor. He was quite in addressing it. Clearly, and it depends upon highyielding influence into the economy to purchase current account deficit. It cannot go below 4 . So the equitation is that the repo rate perhaps can go as lois 4. 5 . So deepest indias growth slowed down that there are expectations, the bulk of the exultation is that the repo rate will probably end up at 4. 65 or maybe 4. 5 which is the lowest since 2003. The r. B. I. Will probably take it have to take it as low as it can it wants to give that monetary stemless to the economy. Comes to theit shadow Banking Sector, we have a renewed fear now. Is this going to keep the r. B. I. Up at night . Absolutely it well. Make no mistake about that. It comes at a time when the shadow Banking Sector is completely paralyzed is not lending. These Banking Sector problems, we have had a small bank turned belly up. And another Bank Restriction has been put. If you see the latest data from the r. B. I. , much land the activity is happening. In a consumption driven economy like india were 60 of gdp is driven by the messick demand, thank lenny is not happening, this growth will slow down driven by domestic demand, if bank lending is not happening, growth will slow down. And supervisory activity and sectors get this kind of sector problem corrected as soon as possible. Stuff from our economic some policy reporter in mumbai p lets stay there where the session is about to get underway 59 minutes from now. Davina is standing by. Last week was a particularly soft week because he saw the banks giving way in such a steep cuts across the board. You see the bank ended the week lower by 5. 5 . Session you had the r. B. I. Policy. There is a big drop in not just the banks which fell to an half seeent but the nfte and hdf bank, all these names started to drop. Aboutte itself closed 11,259. This is going to be crucial because were starting the quarter turning season and much of the activity on the index also will be driven based on the kind of earnings performance. Youre going to start seeing a number some the i. T. Space first. And then others on thursday all these factors will be in mind. Motors just revealed they have 90 of their holdings pledged. David speaking of earnings of the fourth biggest stock and index. It could be nearing the bottom with investors going increasingly bullish ahead of those results which come out on tuesday. Yvonne are asian stocks reporter in seoul, you reported on the bullish forecast but there are not clear signs or not many of a recovery in the memory chip industry. Is the market getting ahead of itself . Yes, thats correct. Traders are increasingly bullish on electronics as you said we have no clear sign on the recovering this market. The point is the prices of the are falling less than they did in the previous quarters. And everyone agrees with the future demand for these dram beps and others which can used for servers, ai and 5g technology, at cetera. Ofalso see the inventory memory chip is declining as well. So the sentiment in seoul is like, the bottom is coming maybe we should add samsung shares before the bottom arrives. It is already bad anyway, right . But that is it very low base. U. S. P samsung technology, exerting concerns on the impact of the trade war peer and how do investors feel about that. Their course concern about micron earnings. Some say micron tends to be conservative. Announcee they earnings guidance. Have a is another for samsung as well which is the trade war and the weak economy some say that if the trade war remains and the growth global couldowth means week, it delay recovering the memory chip industry as well. Wobbly longer than our expectations. Another issue for samsung is the valuation. Rallied morestock than 20 this year. So the valuation seems to be high. But that is not a problem for the longterm investors at all, as you know. I talked to one major recently who said it is a super cycle and the membership industry the stock may rise up to 50 . And samsung shares now flat as a pancake. [laughter] yvonne you can find indepth analysis of newsmakers on Bloomberg Radio. And we are here and are asian headquarters to nan six clock a. M. Hong kong time along with bryan curtis on the team. Not 00 a. M. If youre turning from city. You can also dow the app for access. And bloomberg you can also dial the app. An bloomer greater. Com. This is bloomberg. Yvonne time for our monday edition of the battle of the charts. Clients can access the chart on your bloomberg terminals and run the function you see on the bottom of your screen. Theyre both in singapore. Lets start with joanna. I am looking at Investor Sentiment now. People up and saying it is not all that great, theres a lot of creation out there paid what indicator that hit a new low recently this individual investors. The bullish rating is really low, about 21 . The it gets below 22 in two months out three year afterward, thats a really good sign for stocks. Because if you have the bearish sentiment you have room for people to move higher. There a lot of things percolating out there that can be danger signs for stocks. But right now this is actually looking pretty positive. Hmm, pretty good. Andrew, see if you can beat that. Looking at day rates for takers from the persian gulf to singapore. Going up au can see lot is crude takers. The other line is gasoline and diesel takers. This test skyrocketed since the u. S. Put sanctions on for Chinese Shipping Company so we can half ago. Of takersh the number was relatively small, it cost a lot of disarray in the markets. People scramble to hire new ships. One was a unit of costco the chinese shipping giant. Companies reportedly avoiding all cosco units. Last week a korean refiner was perng additional 2. 70 barrel due to cost. This is an example of the big impact that very aggressive usa u. S. Trade Foreign Policy is having on foreign markets global markets. Day. 90,000 u. S. Per who is shouldering the cost . Any chance that it is also demand as well . Beans that cannot be sustainable. At the moment it is the refiners that are shouldering the burden. Whether they can pass it onto consumers im not sure. I guess we will see that over the coming weeks. I will let you judge today. On any given day, joe and i would give its you because that was a good call to action p but andrews was quite nice. Because that has serious implications on either earnings do i take a or position because it we are at a Fairly Extreme level. We will probably have the chance again tomorrow because youre on often. Thank you. Yvonne and she always wins i felt. Gtv is where you can find those charts. And save us transfer your money money as well. David lots more coming up. Picture of hot and humid singapore. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. 11 00 inthe most singapore, 8 30 a. M. In mumbai. We are entering the last hour of the morning session hong kong. Here are the top stories. China bounced back excitations for a trade breakthrough significant lee narrowing the list of topics on the agenda in d. C. Hong kong recoils from one of its most violent weekends yet. Protesters turned to vandalism in retaliation to the government ban on facemasks. He go. How low can the r. B. I. Governor cuts rates again in a bit to stem the economy. Will be live, by this hour. Crossing on the bloomberg tumor no bloomberg terminal, from President Trump. Saying he will not stand in the way of the turkish president erdogan and syria operation. Reinforcing was versusons in syria u. S. Backed kurdish militants in syria. On thisseeing effects news. Turkish president and 1 also said he was ready to start the operation Northern Syria to reclaim areas from kurdish militant groups. I have the resident of the u. S. Chiming in as well. The president of the u. S. Chiming in. And we are seeing renewed weakness in the u. S. Futures which we had been seeing earlier. China had a mini deal with the u. S. When the trade talks kick off this week. See are seeing muted action on the msci index asiapacific. Flat. Higher and kospi hong kong and china closed today for pollack holidays. Lets look at some of the other asset pets assets moved. Going into the end holding at a one month high. Going into at a the yen japanese yen at one month high. The yuan is that a one month low. Renewed concerns about trade and what that could mean for the economy in singapore. No surprised single being well bid as well. The yen into gold seems to be the flavor of the day for the trading week. Yvonne the flavor of the day for india might be read for the day. We watch on the futures ended see them tumbling earlier in the session after the r. B. I. Rate on friday. They did cut but it seems it was not enough for investors to be happy about it. That 25 basis points. The range was from 15 to 40. There was a bit of disappointment not just in equities but also bonds. He saw concerns about the fiscal deficit again. Yields picking up as well. And we saw the rupee selloff it significant lee. The market not liking thats despite the fact that we heard from the dovish comments from the governor about a whatever it mariomoment that like draghi made years ago. He said as long as necessary. We will talk more about that as morgan strongly as joining us at the bottom of the hours. On the markets invite. First the first word news. Selina wang is a beijing. Prospects of a brexit deal look more faint after pie minister Boris Johnson repeated his vowed to take the u. K. Out of that you at the end of the month. Told french president emmanuel micron u. K. Out of the European Union. He told french president micron that you should not have the mistaken idea that u. K. Will stand after october 31. Johnson said we will be packing our bags and walking out. North korea and the u. S. Are at odds over the success of Nuclear Talks in stockholm on the weekend. The first meeting was for eight months was described by washington is good discussions while pyongyang Nuclear Envoy said negotiations did not meet exit stations and broke down. The talks came after a string of north korea missile launches including the firing of a summer inbased and blessed weapon on wednesday. U. S. Payroll numbers are showing a worrying sign. Job losses in manufacturing total employment contracted by 2000 positions when economists expected to gain of 3000. The figures are the latest indication of a beating u. S. Many factoring is taking in the global slowdown and President Trumps trade war with china. President said she dissented against rate cuts at the past two fomc meetings but would support another cuts if there is evidence of a sharper slowdown. She said the u. S. Economys moderation is in line with her outlook for the medium term and adjusting policy might be appropriate if the data were to indicate a broad weakening. Global news 24 hours a day and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im selina wang. This is bloomberg. Are going to bring back the lines we broke earlier with President Trump chiming in on this whole operation in syria with the Turkish Forces there heading closer to the Northern Syrian operationare the border. And the president saying armed forces will not be involved in this operation according to the white house. Usour Senior Editor joining now. What you make of the reaction from the u. S. . It was really fascinating statement for the white house. Hat just came moments before handss. Is washing his quite frankly. The u. S. Said that turkey is going to move forward. Trump and one spoke. Trump enters president erdogan spoke. The u. S. Will not have its forces in the way. They are not supporting the operation are back in the operation anyway. But its they are not going to stop it which is the redhead line you see flashing across your uber terminal. Across Europe Bloomberg terminal. Narrowingat chinas its scope for the trade talks ahead of the talks. Youre not very good on rhetoric you want definitive. How are you rating the latest. Im going to get that tattooed. I really am. Look, this is a weird case. We were talking earlier, the situation were actually not doing something winds up being doing something. The u. S. Has a lot of things on the table in terms of proposed tariff hikes. Other escalations of existing tariffs to higher levels, or putting new things under tariff. Orany of those are delayed removed entirely, that would be a really massive step. China is looking at bringing a smaller pared down wishlist to washington for these trade talks. That hints at a lesser ambition some of the things they are looking at taking off the table, in terms of chinese subsidies, terms of chinese industry, those are a lot of what the u. S. Has been talking about the entire time. Some might say theyre even the u. S. Main points here. It really is taking some big things off the table. But china is looking like it is trying to frame the contours of what might be a smaller deal, and incremental deal, deal of the sort that the u. S. And japan just signed. So you can see how there might be a path, and offramp. If the president takes it. Derek, you have been on a lot of stories today. That Houston Rockets generating the lasth has unfolded couple of hours. We have seen doing the pr damage here now. But this goes to show that the sensitivity behind anything now when it comes to u. S. China trade war, with hong kong, surrounding any kind of corporation out there. Really big story. I think people should to pay a lot of attention to it. Companiesn a lot of talk china somehow and in. Right . Youve seen some backlash with Cathay Pacific the hong kong company. Room, the ubs act lash over the pay comment, that is a swiss cabinet. This is an American Sports team in an American Sports league. For a sport that was created in america. That is based in texas. And named after the u. S. Space program. This is red white and blue all over it. And the Houston Rockets got trouble because there general manager put out what, in the United States, would be a fairly innocuous tweet about hong kong. It is not in china. A team that used to employ yao ming, the basque about their are usually the greatest basketball player, this tweak comes out in the backlash is immediate. And there is a backlash to the backlash which is that the nba put out a statement distancing themselves from the tweet. Now you santos queen nice see on the screen ted from texas. The senator for the state of the Houston Rockets came out and absently bash the mba the nba, saying they were retreating in pursuit of big money. This is up Public Relations nightmare for the Houston Rockets are reporting on this is just starting. An absolute nightmare. They are getting it from both sides here. Criticism in the United States has been bipartisan and swift. Editor thank you for putting every thing into contest. We will have more on the hong kong protest later. Joining us now to discuss more on trade is edward lim with covenant capital pte ltd. I want to get your view on the deal china could be favoring. His shot china showing a strengthening hand here . Atyes i think if you look what is happening between u. S. And china, and what is happened domestically. It is hong kong and china or the impeachment processed, both parties assessing whether their palooka position is weaker. And may be a partial deals better than no deal at all. In our view, i think we hope it will come true with a partial deal as we saw with japan and the u. S. What about the impeachment. What factor does that have in this when we are about to say these talks kick off in washington. The impeachment process, probably the impossibly that trump be impeached. If the house will convict the house will charge but the senate will convict and we think is impossible for docket to happen. But in the psyche of the chinese leaders they probably have a lot on their plate, and electionyear, they might want to do a small deal. And you started in september becoming less bearish. Overweight on e. M. , exiting tragedies and hedges. Bolditing treasuries and hedges. We are seeing yields tumbling again can you afford to miss out on this rally . We still have treasuries. But less so the u. S. Government. The usy 40 less in treasuries. We have government bonds and other countries. Particular the in emerging markets. Not shifting our government bonds position. We are increasing holdings in other countries such as australia and europe and emerging markets. Stock markets, lets talk more about what we have been seeing with the u. S. Jobs report and pricing in the central bank put. The bond market continues to scream recession. Who is right. Asking the question, given the disparity we have seen. As you track the genesis of where we are now, it points down to what happens between the us in china. If you look at the pmi data is an indication of how the economy shaping up, we had a precipitous drop in september last year. That coincided with u. S. Putting on tariffs on every thing coming from china. And china imposing 60 believe dollars of tariffs. We saw pmi data coming off an expert in a coming off from there. What is fitting into the concern now, is the Service Sector. We wrote about this in june. We see the weakness in many factoring affecting the Service Sector and we are seeing signs of that. While we have upgraded our equities use from underweight to neutral, that is predicated on one thing. The Monetary Policy. Theres been 83 of Central Banks the whole world have eased in the last few months. The last time weve seen such a large percentage at a such a large percentage of central bankers easing was in 2009 and the go to financial process and the Global Financial crisis. And that factors into what the fed is thinking and the possible quarterpoint for october. Looking at the chart we have seen the rally over the dollar coming last 40 years or so it seems to break at a point after around five, you can see that reflected on the yellow line for the end. To be see a break in the rally here as well. The ramifications of emerging markets and other Asset Classes are significant. I think the dollar stays range bound. The reason is because everybody else and particular the fed is also cutting rates in unison with everyone. In contrast to be look what happened in 2018 when the fed was easing rates. Most of the other countries could not ease as much the fed was hiking rates at most countries cannot ease as much as they wanted to. In 2019 it is the opposite reversal. The fed eased given a lot of flex building for other Central Banks to ease. Unless we have a diversions in Monetary Policy between the yen and fed and rest of the world, the dollar probably will say range bound. And more broadly speaking, time to start worrying . We heard from the worlds Biggest Pension Fund in denmark, saying it is time to start worrying. We were sanguine than that. Not to say we will get past bullish on equities. The reason is we feel Monetary Policy, everybody is easing. Number two when i look at data and we have been bearish about data for some time. We see incrementally stabilization. Pmi data to can second of months of stabilized pmi data. Japan machine orders a leading indicator, also two months of better gross numbers from japan machine orders. At the end of the day, the market looks forward pretty if you look at the economic indices quite a few from the numbers of data incoming surprisingly on the upside. Parlay because excitations are so low to begin with. Were getting a positive surprise on the data. Critically we are watching for water Earnings Results quarter Earnings Results. Earnings season will be up and running into weeks. It whenis your take on it comes to the earnings. Manufacturingking do you think earnings have bottomed out . If you look sequentially thirdquarter is worst quarter for the last many years. Expectation is for s p to have a modest 3 year on year growth this quarter. The last time we had a negative autumn quarter or year in growth on a quarterly basis was in late 2015 early 2016. But the forecast here is for every segal porter from here and to gobe positive higher and higher project trajectory. We need to watch what guidance is. The results of the quarter i believe it will be the market expert patients because expectations at least four castings have been revised downward and last couple months ahead of earnings season. In tonk you for coming our singapore studio. Ahead, investors growing increasingly bullish on samsung, betting on a bottom for the memory chip firm. A preview of todays todays tuesdays earnings coming up. People chargedst under hong kongs antimouse law. Backlash to the emergency orient ordinance. We will get an update. This is bloomberg. Hong kong is reeling from one of the most violent weekends of the longrunning democracy protest. Shops and subway stations vandalized and bank atms knocked out. Our chief north asia correspondent joins us now. It was its erratic 72 hours. In is a National Holiday here in hong kong. Day four . Be. T could history says that is usually the case. Backlash seems to be the word of the day today. You have the government of hong kong late last week and it backlash to the escalating violence evoke Emergency Powers to ban the use of masks on the protesters face. Then you have the backlash that backlash, with protesters coming out with facemasks. Then on friday and again on sunday, or act of. Then we had the story about the Houston Rockets general manager and the backlash from china and his comments supporting presumably supporting the hong kong protests. Him getting the backlash from china and then the backlash the backlash from ted cruz and others in washington. We are all getting whiplash from this backlash. I do not mean to make light of it, but it is the situation that is entrenched on all sides. And there is no end in sight and no solution in sight. Right now we have another holiday here. This on behindke me are closed down. The mtr within the whole network is closed as of 6 00 p. M. Today. Stores have been ransacked over the weekend. People are afraid to go out. We are in a bit of a crisis, if you have not heard in hong kong. Steve, when those powers came through from carrie lam friday, with a quite hefty ban or fine ice and also a jail term if you do wear a mask. And then the protesters ignore that anyway, what do the government do now . Tools under more the Emergency Powers. They can impose a curfew. There could be certain levels of martial law would include the clapping and the internet. The clamping down of those social networks systems. Telegram that the protesters use. There could be checkpoints across the city. They could invite or ask chinese authorities and the military assets to take part. There are number of different incremental steps that couldthe government could invoke. However, it is a slippery slope. If you get that backlash again, everything at time, the government tries to crackdown further. The protesters come back with even more violence. Chief north, our asia correspondence. With the latest in the hong kong situation. If you are bloomberg subscriber, you can catch up with all of our interviews by using our interactive function tv. Join the conversation with messages throughout the hour. Check it out. This is bloomberg. A quick check on the latest business headlines. A costcutting drive that threatens up to 10,000 jobs. Financial signs says hsbc Bank Executives question why they have so many staff in europe when many with highest returns are in asia. Any new cuts would come on top of nearly 5000 redundancies made in august already. Could announce the cuts when it absorbs reports thirdquarter results in this month. Reports of u. K. s say hong kongs changes will raise its base for the loc in the coming days after winning conditional support from key shareholders part Times Newspaper says the initial offer valued lse at 83 weres per share but they told by investors and needed to offer between 90 and 100 pounds if it wanted to be taken seriously. Apple exchanged apple changes mind and approve the controversial app that shows Police Department and hong kong. The app is called hk maps. Live and it is a mobile version of the web site that helps users avoid dangerous parts of the city. It was initially rejected by the app store because apple felt encouraged illegal activity. It has now been cleared for sale here in hong kong. Now for the stock of the hour. Youre looking at a korean company. Yes, hlb. On the chipping sector on the kospi. We know a lot of these peace talks are any rally. It is also gauged in pharmaceutical business. Up 18 it is trading at its highest level in the air. It came through saying its global Clinical Study for cancer drug was successfully completed, so look how far it has risen. This time last week about most 30 to the shares increase from one youwo above 100,000 on. The success was based on its own judgment up in valuation of the u. S. Fda. To get a glance of this and other stocks of interest today go to your bloomberg. Coming up, how low can you go, the r. B. I. Governor cutting rates again to revive the slowing economy. This is bloomberg. An is almost 11 30 a. M. And singapore. We are in the middle of the trading day. We are seeing the straight times index rise. 7 on of the bestperforming markets today with a pretty flat, ci asiapacific index. The dollar following the first time in four days amid this new concerned that a prolonged trade war between china and the u. S. Will hurt the States Economic growth rate the u. S. Dollar has been rising by about. 2 against the dollar there at one spot 3813. Lets head to beijing. The Malaysian Anticorruption Commission set a twoweek deadline to claim 2 million from individuals or entities suspected of receiving funds from 1mdb. Includes the brother of a next premiere and two former cabinet ministers. The Commission Says it will not pursue charges against those who return the money voluntarily and on time. Showr investigation will that the money say have received , that we are now seeking back moneysof compound, our from 1mdb. It will belong to the malaysian public. Ndma cc is hoping to recover as much money as from themacc is helping to recover much money for these people. Toina saturday us planning drop the need for visiting men and women to prove their merit if they want to share a hotel. Saudi citizens will still have to show family document but foreigners will not. The kingdom is keen to lower its reliance on fossil fuels and sees tourism as a way to earn spending from abroad. Portugals socialist Prime Minister antonio coastal has won a second term, getting more seats in parliament. Still falling short of an absolute majority. However the results will likely make it easier for him to push future legislation through parliament. Portugals economy has grown for five can second of years, and on the plummet has helped since the country has been cut houses the country saw and if National Bailout in 2011. Japans three quarters of respondents are unhappy about a higher sales tax. I survey by kyoto news says 71 of people are concerned about the likely impact on the economy after the tax when it this month. The rights have been part of the key part of Prime Minister program. Abe global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im selina wang. This is bloomberg. Markets take a look at at the moment. Not a lot of Risk Appetite on the table today. It is a holiday here in hong kong. China has one more day before china reopens before markets reopen. It is labor day in australia. We have been reporting that china is narrowing the scope of the trade deal here just before the trade talks begin. Some will take a look and say half as way that narrow down focus and have a more rational way to get a headline deal. Some say this might be also chinas doubling down and billion their heels more with the red lines. That is something we are contending with you on monday morning. India still in focus and as we saw, the worst week in may. For indian equities since may for indian equities. The rba delving a cut rate 25 basis points do not meet the cut for investors. Nitze futures more positive. Ruby see nick it pretty we saw bonds selloff. 6. 69 india 10 year yield. Anirbhan, will cusp enough to boost growth echo will the cuts be enough to boost growth . Cuts5 basis points of rate , the most regressive in the recent and region but the highfrequency suggest that the growth is still a fair bit away. And the output cap is still widening. Widening. Gap is still oft is despite one header 10 rate cut since february. 110 basis points of rate cut since february. The latest 25 basis point rate cut along with the 25 billion tax cut the government is offering through Corporate Tax cuts is likely to revive the economy, that is the hope of policymakers and whether that will happen or not, we have to wait and see. How loud you think the r. B. I. Can take rates before it starts running out of ammunition. Yvonne we are at 5. 15 . There is a little more room. Thats right theres a bit of space. But you have to remember the r. B. I. s meeting along target of an face laois in a 4 is meeting along target of inflation of 4 . And wants the real rate of interest a little positive. Around 4. 524. 65 which analysts say the r. B. I. Theot go down to to keep economy can go down to to get the economy supported. Sentiment is that he is going to , to keep growth reviving. The hope is that the report rate can go as low as perhaps 4. 5 , if the economy is not reviving in the near term. Yvonne and one thing there seems to be renewed concerns is that the Banking Sector. We did hear from the r. B. I. Governor speaking about that lets listen. Sectorindian banking remains sound and stable. And there is no reason for any unnecessary panic. So unnecessary panic, is the r. B. I. Doing enough in terms of transmission problems here that the r. B. I. Has had when it comes to relieving the pressure . N the Banking Sector ech they are trying the best. There move to an external benchmark system where banks are more transparent about lending rates. But the problems in the banking and shadow Banking Sector are cropping up now and again because of small banks that are cropping up down again. We have a small bank and a problem. A slightly bigger bank had lending restrictions imposed. These are not good news. Ms. Lending problems on bank. Fangs are not letting too much. Theres not much demand for loans as we can see. Economy,umption driven i banking activity is week, think the expectation that growth will revive soon will probably have to wait longer. Thank you. Get more on this story. We have been talking about it in stocks closing with the worst Weekly Performance since may, after the r. B. I. Cut its key policy rate by 25 basis points friday afternoon. Our next guest believes there is scope for further cuts. The managingn director from Morgan Stanley india ridham desai ,. He five basis because friday was underwhelming . Yes. Thanks for having me on bloomberg tv. This dates back to june 2018. We know the economy started sewing up in that quarter. Close that quarter the r. B. I. Raised raise a couple of times, once in june and again in august. It was not till fed where this year that it actually started cutting rates. Tighteromy was bearing than required Interest Rates from a state months. I think the bulk of the slowdown we are seeing over the past several months, i think is largely because of monetary tightness. And the need of the hours to listen rates more. The metric i look at to loosen rates more. Thethe nominal gdp nominal gdp growth minus repo rate. That is it near alltime lows which means room to cut Interest Rates further. Onas hoping it would go more friday. We were forecasting a higher number of basis points. I hope the r. B. I. Takes this more, and more aggressively in its next meeting and cuts rates even more aggressively. How much more aggressively are you looking for. We had been talking about 5. 15 , so there is room for the r. B. I. To keep easing. The historical average gap between nominal gdp growth and repo rate is about six under basis points. If we assume the nominal growth is around 10 would use with rbis forecasting, reaper rates can fall as low as 4 . Is not will be are forecasting, but what im suggesting is that there is a lot of room for Interest Rates to fall in india. Given how weak nominal gp growth is. The nfte itself has already. Iven up half its gains announcing the Corporate Tax cut. And concerns around the shadow Banking Sector. To think the slowdown is overshadowing the cisco windfall. Actually think there to headwinds. One is what is happening globally. Let us not forget theres a Global Growth slowdown youre dealing with. And for everything said and done, 20 of indias gdp is cross exports. So export growth has slowed down materially the past events. When expert growth goes from five Percentage Points to zero when export wealth goes from five Percentage Points to zero, that is a most 100 basis points gone from gp growth. I think growth exports gross export not that. They do not have price less to gdpprint gross export and is an important metric. The second you point out confidence of the financial sector. It is visibly shaken. Thedownside happened after island episode in september last year. I daresay not enough has been done to revive the confidence in the Banking Sector. With had slowdowns and letting growth from nonbanking finance companies. Forh are actually counting extended growth in the proceeding through four years. India areup banks in just coming out of an mpo cycle. That leads a very small number of banks that leaves a small number of banks that have the capital and profit and loss account to lend aggressively. A lot of the lending burden is falling on a smaller number of banks. Clearly there is stress in the financial sector, which is the other overhang on the damascus on that emetic side. You are known for your calls and equity markets. Give us some of your earning estimates and what sectors youre looking at. Isi think the equity markets not just about what the date is, but what is priced in. I reckon a lot of the bad news is in the price range so stock valuation, stock market valuation are looking prickly attractive. As we can all see, the sentiment looks fairly broad. When the sediment and the valuations both are as low as they are now, usually if you look back in time, it is been a good time to buy equities. For some of his patient and has a timeframe of 12 to 18 months. I think when you look back at this time frame, the last for five months may turn out to actually be a good time to have bought equities. Now standing at fact that there could be more nearterm pain before it all settles down. A recentt arguing for recovery in stocks but i think it is a good level to deal a stocks. As far as earnings are concerned we have been regular leaders of earnings for various regions reasons for the latest round of reasons came from the nonbanking finance sector, and overly tight Monetary Policy. Companies in india have just not been able to expand margins. Our view is that this tax cut the government has put through sets the stage for better margins as we go forward. We are getting a lot more optimistic on earnings growth. I reckon over the next two years, at least the nfte companies could compound earnings at about 20 per year. That could be amongst the best growth plates you see in the large economic for any sector. What about high oil prices. Is that one of the risks youre looking at that could dense some of this momentum. Absolutely. Oil prices is noise a risk especially when oil rises on due to supplyside concerns. When oil rises because of demand, is not so important because it is then offset by higher capital growth. But in india what matters is whether oil is going up for supply reasons or demand reasons. The extent there is a potential surprise side problem and oil that is a risk. And how do analyze this. You look at oil relative to copper. Oil and copper respond to the Global Demand impulse. Rising relative to copper, that is usually not been good news for the any markets. We always keep in on oil. Is bad for india in terms of trade. As i said, is a rather inflexible portion of imports. We decided guest joining us talking about she was most concerned about the indian rupee out of emerging markets now. Where you see that going and could that be helping any sectors when it comes to i. T. . Im not so concerned about the rupee. I think it is largely a u. S. Dollar call. Our global team over 12 month timeframe is not so bullish on the dollar. To look at our 12 month view on the rupee, it actually suggest the rupee would appreciate on its own, the rupee is going to be a function of how and you stands repayment response. Even through the troubled time youve seen in indias growth picture. The op has are maimed quite good. The reason is there is a very has remained good. Indian assets from private equities funds and direct investors. So fte and fti investment in india are strong. So far as oil remains benign in the 60 to 70 range, i think indias bop remains in surplus so the pressure on the rupee will not really be sustained. We are not too bearish on the rupee. In terms of cause, the rupee depreciates when you go and buy exports xers. Everyones favorite to suffer services. Slowing downpex is in u. S. Growth is slowing down the Software Companies in india will struggle to grow revenue growth. It has been a strong performing sector. So we are recommending and underweight position on software. Through the appreciates you get a lot of domestic sectors doing well. Which includes autos, industrials and the banks. Greate area insight to get your insight. Note his target sense acts by june at 45,000. Martek are getting ready to open. What to expect from todays session. We have a markets nap, three week rally, how is it looking today . A market snap. Is a very flat opening remember this is a truncated week with a holiday for Indian Markets tomorrow. Ahead of that traders will stairway to create new positions. Where sing a lot of short positions created friday. We are back in the red in the opening. 11,169 is where the index has been trading. Right now we are trading below the 200 day moving average. Sensex holding up in the positive territory. Last one you a days we have seen games coming about. Primarily because of the announcement gains. Historic announcement on the Corporate Tax rate cuts. , leadingeen weakness around 70 want to the dollar print when you look at the dollar markets the picture continues to look grim as the ratio is in the negative. What are some of the stocks are watching the opening. All large caps, nfte consider ends constituents are in focus. Before the september earning weight release. Hst see bank, nfte came up with the update for september. The numbers are looking good whatever they posted. Been aboveosits has expectation prestrong growth after a week first quarter. They started in the positive. By judge finances the other print Bajaj Finance is all right. Down 50 thisock year. Management informs the stock exchanges friday that the promoter has created an encumbrance representing nearly in vee capital, which was created in 2017. The stock reacting talk sharply to that. 90 other Promoter Holding has been pledged. Coming up, when the chips are down we look ahead to samsungs results. And signs the Semiconductor Market may have found a bottom. This is bloomberg. Juliette the global chip cycle could be nearing the bottom with investors growing increasingly bullish ahead of samsungs results tuesday. Ia stops recorder is in so stocks reporter is in so, software. Seoul. As you said, traders are increasingly bullish on samsung electronics. There is no clear sign in the recovering global chip industry. The prices of the year and chips are falling less than it did in the previous quarter. Prices of the dram chips. We also see the inventory of the chip makers are declining. Also, everyone agrees with the future demand for that ship, which could be used for servers, 5g technology and ai the sentiment in seoul is that traders watching for the bottom in this industry, so everyone is asking, when is the bottom coming. ,aybe we have the bottom near so why do we buy some ships now. Juliette markets look ahead. But then you have comedies like micron technologies their earnings forecast was low at market exit dictations. They were citing concerns over the trade war. Their forecast was below market exit dictations. Worriedurse traders are about microns forecast. Micron always say has to be a little conservative in their guidance. As youe issues mentioned, the trade war between the u. S. And china. That could have an impact on the sentiment or buyers for the chips. So unless the trade war remains unresolved, the Recovery Scenario for the memory chip industry could be delayed or lower than erics dictations. Also, another problem for issungs is that everyone already expected recovery for the industry so that shares rallied 20 this year. That kabila hi some say. A little bit be high some people say. But these issues are not a problem for longterm investors moving on samsung shares. Juliette thank you, our asia stocks reporter ahead up luminary earnings from samsung tomorrow. Plenty more ahead. This is bloomberg. A quick check of the latest business headlines. Hoping for a solution to the threeweek strike at General Motors are fading. The two sides had been making progress on key issues, but the uaw now says the company has not addressed key points including job security, gm says it will continue negotiating in good faith. And it is committed to finding a solution. To the strike. Halt itsis pledging to use of newly made plastic by 2025, as the consumer goods industry comes into criticism about the Environmental Impact of throwaway packaging. It says it will reduce its overall use of plastic by 100,000 tons per year while stepping up recycling. Food and Beverage Companies are under increasingly under fire as waste plastic pollution increases. China state oil company pulled out of the 5 billion project to develop an offshore gas field in around, and what seems to be the latest corporate casualty of u. S. Sanctions on the islamic republik. Cm cici is null and are part of the deal begin no reason for the decision. French energy giant to call had already withdrawn from the project which had taken an majority stake. Ahead for another bisbee for markets. Yvonne tuesday where watching a big one, Chinese Markets reopening after the holiday. The impact on trade development, ongoing arrests in hong kong and also another health chest on the mainland economy with composite pmi and services do is wellpaid wednesday we look ahead to the minutes of the fomc september meeting. It will provide clues on the feds likely policy direction and how divided the fomc is on the direction of rates moving forward. And on thursday the chinese vice premier is its washington for the reception of trade talks. Friday malaysia will unveil its budget for 2020 plenty of Headline News this week. Juliette is going to be a busy week for us all. A pretty flat start to the trading week here, because of concerns that bloomberg escaped that china is narrowing the scope of the trade you ahead of talks. The msci indexes flat. And in the nikkei we are seeing the yen gained along with gold. Australian stocks are looking ok in trade it is a Public Holiday in some states. The kospi is pretty flat here in singapore. The index is up by. 7 . Dollar has found the first time in four days. That is it for Bloomberg Markets asia. Stay with us. Bloomberg middle east is next. This is bloomberg. The following is a paid presentation brought to you by rare collectibles tv. The California Gold rush is considered to be one of the most impactful events to affect americas young economy during its first 100 years, and it has certainly had a longlasting impression in numismatic history as well. The people of california needed a way to standardize the value

© 2024 Vimarsana

comparemela.com © 2020. All Rights Reserved.