Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

Dependent. Lets have a look at what is going on with some of the moving parts in some of these assets. The 10 year yield was going up to 2 , which could signal all sorts of things regarding the economy and the u. S. Economy. And expect through the fed to be moving for the time being. The japanese 10 year yield has been on a tear. Bonds have been following. The bond market coming back a little bit. Up to the zero level. This is the hang seng Property Index in lieu of the Property Price numbers we had out of china. Higher at the moment. About 6. 7 so far. Looking at the idr as it strengthens, we do get trade data that you give us a single how a signal how indonesia is bearing the winds of commerce. Lets go across the world and get over to new york. Su keenan is there. Start with hong kong, which faces a fifth week of disruption as protesters step up their campaign a the business district. The unrest is hitting the economy hard. J. P. Morgan chase and they caved a pacific are the latest to be canceled. The senate is preparing to accelerate legislation in support of the prodemocracy campaign in hong kong by placing the city special trading status under annual review. The bill will come to the floor unless there is a formal objection. Senator markey will be a denounced the Hong Kong Government. Denounced marco rubio the Hong Kong Government. Rudy iuliani is Rudy Giuliani is facing a federal investigation over possible Campaign Finance regulations. U. S. Official says the inquiry could incurred could include charges of conspiracy and breaking laws on charges of bribing foreign officials. It is a threat u. S. China trade talks are said to have stumbled over washingtons demand that beijing spells out how it plans to purchase as much as 50 billion of farm produce a year. We are told chinese negotiators are pushing back on a proposal they provide monthly, quarterly, and annual targets for tart ashford totals for totals. Aday, ons, 24hours air, and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Ofhaad we have had a range gloomy data exposing how Global Growth does remain vulnerable to trade tensions and dependence on u. S. Economic momentum. In japan, growth slowing. Ran down hikes stockpiles of goods. Germany may have dodged a technical recession but only after a. Yvonne , we are talking about the output numbers. We heard from jay powell. He was more upbeat when it came to the u. S. Economy in the second day of testimony to congress. Rishaad we have Kathleen Hays joining us. All these things are seeing signs of a slowdown in the rest of the world. The fed and fed officials they are upbeat, but are they being pollyanna can . The economy is in good place. That is what you hear from one official after another. Admit, Consumer Spending surprised the latest quarter and continues to be the mainstay of the u. S. Economy as the trade war has swirled around it. Growing payrolls, rising wages. The yield curve was a big worry before the three rate cuts. No longer inverted now. The fed cut rates three times since july. So whyy policy works, would they not expect this to go through . Big wakely remove the on sentiment on people who want to invest some money. As the president of the San Francisco fed said yesterday, if waste material materialized if risk material materialized, to rethink and reassess, but they have to see how it goes. Spoke to adrian to wait and ready see. What was the thinking . He basically said our recent rate cuts member the 50 basis cut in august . A but then the opportunity to observe the data. It bought them the opportunity to observe the data. It is going to continue to show up for a while. The market should not be spooked by this. He is betting on a 2020 recovery. He sees early recovery signs. Is one of the weak spots of the new zealand economy. He is certainly not shutting the door to another rate cut if necessary. About february, but the door is open. Outwould you shut optionality . Important, the message to the market is, rates are going to be low for a prolonged period. Is he opened the things like negative rates is he opened to things like negative rates . He is not betting on that either. It is time to wait. Give it some time and see what happens. Usual, it is time that is going to be the telling thing. Kathleen hays in San Francisco. Yvonne lets get to mark cranfield. Mark, tell the world what we are watching. Up until this week, it was so much optimism here at this from a rally. Things came to a screeching halt with the data that came out. Now, things are back up. I think what you are seeing is an endorsement of a theme that is gradually taking hold over the last few weeks. Traders are more interested in incremental good news rather than trying to worry about people pouring cold water on this u. S. China trade deal. We had a good example this morning when we had the comments saying it waslow just short strokes from the trade deal being done. We saw the rallies of the s p futures. Record highached a in this mornings trading. Traders realize that the Global Economy might be at a relatively low level. We have seen a reduction in growth. There has been some disturbing economic data, but the message from the central bankers and the fed is that we are somewhere close to the bottom. It may be a slow turning point, but we are probably starting to see a slightly positive change. Companiesing adjusting to the trade tariffs in place. They are getting around it by adjusting the trade flows in the places from which they do business. Picturet such a bleak as some of the data is suggesting. Rishaad lets have a look at the question of the day. Volatility across asset solo . We have the global uncertainties remaining elevated. Traders will tell you it is hard to make money from volatility. On a daytoday basis, you are losing money while youre waiting for the big event to happen. You need to have very deep pockets to support a trade where you are constantly on a volatility. A lot of people jump in and they by the volatility for a short trade. Leading four is a way to let your p l go out the window. Rishaad hold that thought. Mark cranfield. Still ahead, jack morris and u. S. China relations could face decades of turbulence. Yvonne up next, hong kong remains on edge after a week of chaos. We will look ahead at the gdp pannand talk with the rice ceo. This is bloomberg. Yvonne the protests in hong kong have dragged on for months and are increasingly affecting business and daily life. Today brings the final reading of thirdquarter gdp. Economists expect a decline of willt 3 , saying things get worse before the year is out. Rishaad lets bring in the ceo of the luxury watchmaker. We have had a lot of people running retail. How are you feeling it . Hong kong is challenging. You know better than me. We have five operations. We just opened in the airport. We remain occupant we remain optimistic about the future of the island. It remains a hub for many of our customers coming from china and europe. We challenge for us is how are over performing the rest of the industry. How much we will have local customers. Continuing to buy in our stores in hong kong. Yvonne you have any strange in your strategy to deal with these disruptions . Are you about to adjust any of the numbers . Business in about 50 countries in the world. You can have the countries in great shape and currencies at the same level. We have experienced these situations in paris. The situation in paris is back to normal. Now, it is back in hong kong. The ember we haven using been used to hong kong having this disruption in business. But i hope for you guys is that the situation is back to normal. When it is back to normal, you see the tourism is back to the city, which remains a major hub for luxury and other injuries. Rishaad one of the key things in the retail space is we have had fewer and fewer Mainland China visitors coming in. That has caused a huge slowdown. Are you seeing the demand being shifted elsewhere in the region as a result . Stores in the world. We are seeing growth in singapore. On mainlandso china. The trend we have in the Retail Operation in asia is surprising enough. 75 of the Business Done with mainland chinese is with having more and more chinese buying in their country. Tokyo aresingapore, still getting market share. Rishaad are they making up it compensates a majority of the losses in hong kong. The biggest away was the first couple of months. We were not in a position to expect what was happening. People are changing their habits of travel. Yvonne hong kong has always been the number one export market for swiss watches. Do you see that changing . Do you see the u. S. And china . Uperseding hong kong the city can hardly compare with the 1. 5 billion in china and the 300 million in the u. S. Concern remains the u. S. For a business. We see more potential over the next 10 years in these two countries. Hong kong will remain one of the top five hubs for business in the future. Rishaad why is it such a big watch hub . Hong kong has got the chance to be a trading platform. Rishaad it always has been. I am sure it always will be in the future. Shopping, it was especially a major destination. When you have a couple other cities important for other mainly ahong kong was shopping destination. You see how much variety and new concepts which exist in hong kong. It remains a magnet for many nationalities. I remember when the japanese were coming in in big numbers. Destinations been a for high end luxury. Yvonne what are you doing to capture these chinese buyers . Are you doing things catering to their taste . What we do in Mainland China is more what we do in the rest of the world. You will be surprised to learn our best sellers in china are the ones we have in the rest of the world. In chinasold as well as the rest of the world. What we do for the mainland chinese is we work in Mainland China. We have opened a large number of operations in beijing and many other cities in Mainland China. A Digital Strategy to be much more active, creative. Our business is about creativity can we have about creativity. How to associate one limitededition tune experience like trading with the Italian Military forces for 24 hours. We have gotten people from hong kong who are part of that. Rishaad tell me what is going on in the industry as a whole. Do you feel any pressure coming from the smart watches . Does that in any way erode your sales . I do not see that as a threat. Even more like an opportunity. Half of the world is not wearing watches. You have all of the new generation, which instead of wearing watches, is coming in our industry by the smart watches. I anticipate the share of these will jump to our watches in a couple of years. Watches is a new business. Vcr has not threatened the tv station you have much more ways to consume television. Watches are not in our business at all. We are 100 mechanical. Creating a business here in china and in the u. S. Rishaad thank you so much. Up, alibaba has kicked off at secondary listing in hong kong. The latest on what could be the years biggest stock offering. This is bloomberg. Yvonne lets get to your latest business flash headlines. Amazon is going to a protest of protested the pentagons decision to award Cloud Computing to microsoft. Amazon says there has been unmistakable biase and political influence. The contract has been had been expected to go to Amazon Web Services but was given to microsoft. Shares for alibaba will be offered at 188 hong kong dollars each. It apparently rhymes with prosperity forever. Post sayingina there is been an owner must response to the listing, which could raise up to 15 billion. More on alibaba with ideals reporter. What is the initial feedback from investors with regards to this . Good morning. The feedback has been good so far. Lets see how the volatile markets are affected in the coming days. I think people have long awaited these listings. They are well prepared. It is a household name in asia. It should do well. They are just starting to price. They paid a suspicious number. Lets see if they are luckier this time. There bigger ipos in hong kong, a member budweiser had to pull the first attempt even though they came back with a successful ipo. Well. A should do the ipo should come through in the coming days. It is a very volatile situation in hong kong, which could affect the listing. Regret noty say they listing back in the day. What does it mean to come back and consider hong kong . It was a big bummer five years ago when they decided to go to the u. S. That was the trend for ecommerce companies. They keep looking to the u. S. As their first are preferred listing venue. It is a much more matured market. They are coming back. For alibaba, it is a bit of an insurance deal. If you take into account all of the environment with trade war , coming uncertainty into hong kong gives alibaba a bit of an insurance for whatever may have been. They have another arm closer to home in which investors can trade and participate. Rishaad tell me, we saw with anheuserbusch when they pulled the first time they were going to the market with budweiser brewing, is there a chance this could also be pulled . There is always a chance. Are looking into a wellrespected brand. For both retail and institutional investors, i think they are keen on this potential deal. Anything could happen. But i think chances are that it will go through. They are excited to come to the market. I think it is a sign they really have some backers out there. Yvonne Tech Companies have long resisted or at least have not chosen as hong kong chosen hong kong as a place to list. Does this unleash a whole lot of Tech Companies coming back . Potentially. For theld be a boon city, especially what is going on in the last six months. We might see other Tech Companies coming here. Yvonne thank you. Our deals reporter joining us in hong kong with alibaba. Have chosen a very suspicious number. Rishaad we are going to the turkey lunch break. Production numbers in a little while. 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 anytime. 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 four hundred dollars a year on your wireless bill. And save even more when you bring your own phone and upgraded your network. Thats simple, easy, awesome. Click, call or visit a store today. It is 10 29 a. M. In hong kong and shanghai. Im su keenan with the first word headlines. We start with india. New delhi remains in the grip of choking smog with residents urged to avoid all physical activity. The air index exceeded nine times the level recommended by the world health organization. Indexe places, the crossed the 500 mark. Schools will remain shut on friday. Traffic movement is restricted. The European Investment bank has adopted an unprecedented plan to end all funding for projects involving fossil fuels. This is part of a move to become the first climate neutral continent on the planet. It includes increased support for clean energy deals. With more than half 1 trillion the ei ndding loans, is the it is owned by e. U. Member states. To jackjack ma now ma. He has visited togo. This is as he ramps up his transition from businessman to philanthropist. He plans to discuss tech and digital innovation. He told us he is keen to pass on what he has learned running the chinese tech and consumer giant. I, as a global citizen, as an entrepreneur i come as a global citizen, as an entrepreneur. I think a lot of our experience and ideas, our knowhow could enable and help african young people. 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 some of singapores top tycoons may team up for one of the coveted new banking licenses. The group is discussing a consortium. Singapore is aiming to shakeup the Financial Services industry with virtual banks and create competition for traditional lenders. The headjoining us is of digital for asiapacific. A lot of names. Lets have a look at that. They are planning to have a more Competitive Landscape for the lenders, but does the document, which sets out the regulations of the virtual banks, actually have to adhere to . About driving more competition in the market. Seen is some guidelines that drives that, but targets under serves settlements of the population. The requirements to get a license are quite high. In needs to be a consortium of tech firms and banking firms. Rishaad when you read it, it does seem a bit strange they cannot take away business from the existing lenders. I guess it is more focused on trying to address the underserved settlement. Offeringor wholesale is an area they feel needs attention. Give tocenses will wholesale will be given to wholesale propositions. I think it is about looking at the Banking Industry as a whole and building new propositions to be launched. Rishaad giant yvonne china has been running ahead of the whole fintech race. What models do you see could be applied . What we are seeing is lots of new Business Models coming in to various different markets. Bunch of newa virtual banks, which are , Digital Mobile only propositions. We are also seeing the emergence of models like banking as a service. There are Companies Like flores bank in germany. They provided technology for anyone to build front end on top of their technology to provide Banking Services. That is a model we see increasing. Rishaad it amounts to shadow banking to some extent, doesnt it . There is a gray line. It opens up an opportunity for nonFinancial Services firms to get into the banking. Technology is at a point now where the market is wide open for new players. We have seen in indonesia, across Southeast Asia move into the payment space and the lending space and take lateral moves across industries. Yvonne how can these Nonfinancial Companies compete with traditional lenders or even the ones joining in on the virtual bank front . It is a very crowded space. They can differentiate through looking at the underserved needs of the population and designing products and services addressed in the market. They have the data. They have the data. They had the consumer base. That are across asia really lacking in terms of Banking Service offerings. Rishaad what about the licenses in hong kong . There were advantages in the region. Have they lost that . I think hong kong is anticipating the arrivals of these virtual banks. Rishaad we have had a few licenses granted. Eight licenses in hong kong. I think it is good news for the consumer across asia. Fors a massive opportunity existing banks and insurers to offer their own Business Models and leveraging the brands they already have. Yvonne it seems the big sell is, they are convenient. There is speed in these virtual banks. Once that is commoditized, what happens next . Retaining it is about those customers by building the engagement. What we will see is a gradual release of new products and services by these virtual banks. There will be a broader set of products released as the consumer engagement. Increases it is about meeting the customer needs through the lifecycle. Fintech getsword bandied about. Wont people use the usual buzzwords give me some tangible examples of where you have been seeing it happen . Isfinancial technology essential of the application of new take to solve problems in the market for customers. Terms like policy powell in singapore policy pal in singapore. Digital e a in hong kong, we see models like konta fee, who are a Digital Investment platform. Using that technology to provide more products and services to consumers. Yvonne the one example we saw during the Hong Kong Fintech chat. Was alibaba, we ofg of a chamber your the game changer is that . That is the complaint ic from people who use these platforms. Everything they are doing in terms of payments and mobile inlets, they are the envy asia because you have people like we bank with huge numbers of customers. The cost of running that technology is a fraction of what the listed banks have. It is one to watch. The incumbents in the different markets are looking at the tech firms and looking at examples like that and saying, can we do something similar . Can we leverage the trusted brands to offer these services to our customers . Does crypto world figure in this . It is a huge opportunity, but it is the technology that is trying to find the right space. We have seen a lot of banks and insurers around the world run pilots. I think it has huge potential. Aght now, we have not seen pillar case in Financial Services where it can be ruled out at scale. It is one to watch. Rishaad thank you for coming on. Mase coming up, jack trade war morning. Our exclusive interview with the alibaba cofounder, next. This is bloomberg. Rishaad you are back with Bloomberg Markets. Jack ma explaining u. S. China relations could face 20 years of turbulence. Yvonne the alibaba cofounder spoke with bloomberg on a tour to promote his Digital Economy initiative. Not handle a candle carefully, the trade war the usa and china relationship might be in some turbulence in 20 years. The next 20 years. We have to be very careful. So important for china and the usa to Work Together. Supporting the economy. Keeping prosperity. Shared technology together. And for so many years, the china and u. S. Have been working together. There is a problem that is very natural. If there is no problem that is not natural to we have to solve the problems. Should not create more problems. List there still a plan to a financial . We do not have a plan for that yet in the shortterm first, wecing are profitable. We are healthy. We have a lot of things we want years to making sure we have enough investment for the future. If you did list, do you know what exchange he would be looking at . Exchange he would be looking at . Like i say, we are not thinking about when to marry. So we are not looking at where to marry yet. Rishaad jack ma speaking exclusively to bloomberg. Yvonne run motorola is rebooting the razor flip phone as a smartphone with a display that gives the lenovo brand a unique selling point. The device reprises the name and looks like a modernized version of the original. Costs 1490 nine dollars and will be available for preorder in december in europe. Rishaad Singapore Telecom swinging to a net loss of 68 million. It was down to an exceptional cost related to the loss was worth 490 million u. S. Dollars. The chief executive saying the weak Global Demand has hurt the telecom industry. Yvonne vodafones indian unit is appealing for urgent government relief after posting the worst quarterly loss in corporate history, facing a 4 billion demand to cover past dues. Vodafone took a one time charge that led to a net loss of 7 billion in the three months through september. The second largest phone operator has not seen any profit since it was formed in 2017. Rishaad an hour to go before the session in india gets underway. Stocks areome of the going to be washed closely when things get going. Going to be watched closely when things get going. Aside from the find they took the one time loss of 4 billion, the reported a decent quarter. Y had a 7 overall, the cellular revenues increased. They actually had a decent quarter in terms of their performance. Cellular, despite the largest loss they have reported, and this is probably the largest the performance of the company deteriorated. 9 million subscribers left the network. Dide from that, you have recognizing of the for idea cellular, it could be very negative. The stock is worth two rupees. Aside from that, the mood of the market yesterday saw a big pullback. 400 points yesterday. Aside from that, Technology Stocks where the one that took a little bit yesterday. Mentioned about the broad millions. How is the earnings picture looking in india so far . This quarter, it was anticipated you would rather see a good quarter across the board. It has not been a bad quarter. Most of the companies have managed to meet expectations if not the it. If not beat it. What the Corporate Tax cuts have done is theyve limited the downgrade that would otherwise have come in for indian equities instead of giving any form of material upgrade. You see the top line being kicked up. Overall, it has been a decent earnings season so far. Rishaad thank you very much indeed. Way,ve a lot more on the especially looking at a merger in japan. This is bloomberg. Rishaad we have been watching softbank with news yesterday breaking of a possible merger between its for murray dahood japan and z holdings. Yvonne lets get to our Bloomberg Opinion columnist who says the merger may be the last chance after years of stagnation. Whitey think this merger make sense . Why do you think this merger make sense . Stagnation is the word for it. They have 164 million users in four core markets. That number has not changed over the last 18 months. They have not tried to grow the user numbers. If you are not familiar with the wine, it is similar to whatsapp line, it is similar to whatsapp. Stickers,o sell you which are advertising and moving into fintech. They have stagnated because make because management has gotten lazy in trying to expand overseas to Southeast Asia. If they are not going to expand, they are not going to keep growing. Engagement has dropped off. With a company like this slowly dying, i believe it was inevitable they would have to merge with someone else. Yahoo japan has a future as good as any. Rishaad there has been talk that this is two losers getting ready. What would a future locally with futuretity echo look like with a merged entity . I would not disagree with that view. The yahoo brand is not what it used to be. Yahoo japan is a strong brand globally. Yahoo japan is trying to move more into ecommerce. They would be taking on the likes of rakutin or amazon. Having a messaging product in the portfolio would be good. People use instant messengers daily. Door inook at pin china, which is a social commerce application, they use we chat very highly. It is dependent on being able to communicate easily. I do believe that having instant messenger is they kind of move that would help yahoo japan with an ecommerce goal and help the economy move forward. Yahoo as a Global Company had yahoo messenger 15 or 20 years ago. It was a huge business for yahoo . It did very well for them. There is reason to believe that an instant messenger could help their plans. Yvonne what does this mean for . Ec yutan for rakuten are they going to be losing out from this . Potentially. I would not count them out so quickly. I think the fall on the news ort this could be a weakness that might be a bone or ability they could face. Yahoo japan, they are a competitor, but adding an instant messenger really makes the yahoo japan product. It does make that a more compelling option. That would be one area that rec that rakuten could face weakness. Rishaad lets have a look at some of these markets. Top ofwandering into the the hour. The hang seng, a day of positivity. We were looking at a terrible end of the week at the start of the session. It was looking as though we would have the worst week since august. That was a loss of 1. 6 . We have dialed things back. The asiapacific market is moving to the upside. Yvonne it seems like the headlines with larry kudlow saying the phase i deal is getting down to the short strokes is lifting sentiment a little bit. You see some money being taking out of the havens. We are seeing yields pick up by two basis points. We are still talking about 184 for the 10 year yield. Rishaad yesterday, we were talking about you could go to 185 as it would go to 215. That is the way he was seeing it. Australian 10 year falling. The yen, more or less stable. Of theseoves out havens. The gold futures staying down one third of 1 . That is the position we find ourselves in. Yvonne there are talks about some type of qe being introduced as well. That is making some headlines here. What we could hear from solo next week. Taking a look at what else we are watching. Southeast asian markets. Pretty much flat when it comes to malaysia. Rishaad gdp data out later on. Indonesia has trade data coming up. Yvonne it just came out. Fell 6 in october. We did get a trade surplus because imports fell off a cliff, falling 16 . The estimate was for 15 . It is still worse than what economists were expecting. Indonesia not being immune to some of the trade tensions after we saw a dismal wrap of data. Rishaad the philippines, we had the Rate Decision yesterday. Not doing anything with regards to the cost of borrowing. We have the markets. The hang seng up a fraction. The mlfeally injection did not lift the equity markets. It did not do anything with animal spirits. Maintaining liquidity rather than having a steep rather than having a sweeping stimulus program. That is where we find ourselves in regards to the financial markets. Yvonne some lines crossing through here when it comes to the hong kong situation. Stephen engle was talking about a 70yearold man that was that reportedly had passed away. There were reports he had been hit by a break in the midst of these clashes between demonstrators and police. The Hong Kong Police listing the elderly who was killed as a murder case. The city again bracing for a lunchtime disruption, which has been the case every day this week. Right here in the central part of the city. That is where we find ourselves. Change, seng, for a giving to the upside. This is bloomberg. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. Switch now and see how you could save up to 400 a year. And get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. It is almost 11 00 in singapore. A 30 a. M. In mumbai. Rishaad entering the last hour of the morning session right here in hong kong. This is a look at top story. The fed chief striking a positive turn. Jay powell says the American Economy is a star performer. Hong kong theres the end of a chaotic week. President xi warns the violence must the growing threat of climate change. Look at climate in the greater bay area as sea levels rise. This is Bloomberg Markets. Finally some green in sia as larry kudlow says a phase one trade deal could be done with a stroke shock. Investors are wanting to get in on the action should there be some kind of an agreement reached over the weekend. The nikkei is trading high. Into hong kongs equity arket which has been hit heavily this week due to the violence in the city. Hong kongl seeing stocks on track for their worst week in around three months. Chinas market also getting boost as we saw officials injecteded 29 billion into the Banking System today and the Australian Market is one of the front uners up by. 9 or 1 . No surprising youre seeing out and back into the yuan. Were also hearing from a lot of ere is positioning going into because d kiwi people dont want to be left short if an agreement is reached. A little higher against the green back. Numbers are coming through on monday land and there are suggestions there could be a pickup. A 10day aring high against the greenback. Just take a look at the prospects, under 3 4 of an get to go before we things up and running. Sincee nifty futures, november 13. Showing that were going to be adding to modest gains we did see in the thursday. N. 3 of a 1 gain or thereabouts. This is what we had before closed. Tuesday, november 11, down 1 . 1 3 of rupee, 71. 84 e and the 10year yield little bit. Recent after some declines. 6. 52 . Year yield is telecom side of things very focus. N also, weve got more to watch out for when things get under way in indias capital. Lets move to new york. Heres sue keenan. President with trumps personal lawyer, Rudy Giuliani. Facing federal investigation for possible Campaign Finances and a ailure to register as a u. S. Foreign agent. The inquiry could include harges of conspiracy or breaking laws against bribing foreign officials. It presents a serious threat to President Trump and its coming from a man described a hand bolton as grenade. President trump meanwhile is supreme e u. S. Court to prevent his tax returns from being handed to in new york. Hes filing an appeal that aims to give him broad from criminal investigations while serving as president. Its the first time the ustices have been drawn into the president s personal business dealings and the case will likely willingness to intervene on his behalf. New delhi remains in the grip of choking smog with to avoid alled outdoor physical activity. The average air quality exceeded a reading of this, is h, get nine times the level recommended by the world health organization. Places the ome index crossed the 500 mark. Chools in the capital will remain shut on friday and Traffic Movement is being restricted. Qantas, the airline, has contender for the worlds longest flight, a nonstop from london to sydney. Of its project sunrise initiative. The flight covers more than 10,000 miles and follows the test of a slightly shorteren n stop from new york to sydney last month. It landed successfully a a tle earlier after mammoth 19 1 2 hours in the air. 24 hours a ws, day, and on twitter, powered y more than 2,700 journalists and analysts in more than 120 countries. Sue keenan, this is bloomberg. Gloomy data from asia to europe exposes ow Global Growth remains vulnerable to trade tensions and dependence on u. S. Momentum in. Japan growth slowed to a fraction of forecasts as fall andontinue to the sales tax hike ran down stockpiles of goods. Narrowly dodged a fissure but only after darting a previous contraction. Slowing retails sales fixed assets growing at a record low. Rather upbeat on the u. S. Economy on his second day of testimony to congress. The u. S. Economy is the star economy these days. Ere growing at 2 , right if that range. So more than any of the other advanced economies are no ing and there is reason to think that cant continue. There is no reason to think see that the probability of a recession is at all elevated at this time. Our forecast, our expectations are very much ne of continued moderate growth, a strong labor market and inflation close 2 objective. Global economic and olicy editor Kathleen Hays joins us. Kathleen with all of these signs of a growing slowdown whyhe rest of the world are state officials so upbeat on the United States . First, lets remember, a of the worldst is under pressure. A lot of the rest of the world, you just talked about some bad numbers. So by comparison, yes, i guess the u. S. Economy could looked at as the star and certainly fed officials of all stripes have been saying the economy is in a good place. What is that good place . Well, Consumer Spending has eld up in spite of uncertainty from the trade war or whateverles you might andk would drag it down Consumer Spending has helped to keep demand going. Maybe thats one reason why rising. Wages arent going to the moon. They are rising a lot faster at they continue to rise a modest pace. And remember, since the feds started on the course of rates three times, the yield curve which was inverted has actually steepened. Thats a very important sign by fed officials that right. Ing is going they have cut rates three times since july. Rush to you be in cut rates again . Even one of the most dovish ed officials started pounding the table early for rate cuts, now says it makes sense to wait and see how economy reagents to the rate cuts. He said that today. Finally, all this news, yes, little, despite all the bumps in the road it looks like the u. S. And hina may actually be inching towards phase one of the trade deal. If we get that. It start making companies a little less uncertain and less pressure on manufacturing . These things could add to the u. S. Economy. Clear. Ficials make it were watching, if the worst happens and you see it showing up in the numbers, es, they will look at cutting rates again but for now they dont feel like they have to and they will but and see if they do one thing for sure no one is signaling any kind of move raising hink about them at this point. And ll have to wait see the approach. You talked to hes also that camp. Nt in well, he certainly is. I think one of the interesting things, one of made in a he couple of different ways, look, they have cut rates in a short period of time. August, 50 basis points cut and as a result putting in, a short period of time, yes, there is weakness in the economy but its going tic, effect. Lets listen. Were very convinced that, one, these interest ates will stay low for a prolonged period of time. And two, we already have treatment in monetary conditions. It seems weve bought ourselves an opportunity to data, watch this monetary stimulus work hrough the economy, and were starting to see all of the signs we would expect to see of Monetary Policy being effective. For now were watching adrian, who went directly meeting to a Financial Stability Board Meeting the following day. He said, yeah, there is a in the economy and well see it coming true for a while. Markets, dont get spooked by that because there are forces in place with this 2020 recovery. In fact, he says you can see early signs of it starting in asset rough prices, in wages that will support the consumer. One of thes been weak parts of the new zealand economy. Hes definitely keeping the open to another rate cut. Why shut it, he said . And again, Important Message is, rates will be low for a long time, and i think this were going to hear more and more from other central bankers if lucky enough to say they can pause and rate, they are stopping the rate path and seeing if they have done enough. Again, it doesnt mean they re moving in another direction but if a trade deal is in place maybe it movement is towards a little more optimism if it shows up, in the numbers. Germany g that in yet or japan. Certainly not seeing it in china. Yeah, exactly. Bloombergs Global Economic and policy editor Kathleen Hays for us in San Francisco. As always. Billionaire jack moss sees trade turbulence ahead for china and the United States. Our bring you exclusive interview. Hong kong descends into chaos. Re the u. S. Moves in to support the pro democracy campaign. This is bloomberg. Mpaign. This is bloomberg. Youre watching Bloomberg Markets asia. In singapore. Kong, indeed,g hong kong is facing a fifth consecutive week day of disruption. Unrest is nning hitting the economy undermining a stream of and corporate events. Our correspondent has been following this right from getgo. Steve . Teve let me give you a rundown. The prospect for a fifth consecutive work day of in hong kong, its not just on weekends anymore. Wednesday, sday, and thursday, battle on ampuses including the standoff at Chinese University of hong kong. There is a standoff now up, deep into the new territories, where the highway is blocked. You can see some of the yesterday e from as well. The cross harbor tunnel, hong kong has been amaged and blocked and closed. There was then added confusion that came from the global times there was a curfew coming this weekend with the Hong Kong Government saying is totally unfounded. They will not impose a curfew at the current stage. He police say thats not their decision. Its up to carry lamb. Schools will be closed again today. Citywide, through this weekend, we dont know what next weekend will hold. Know, though is a 70yearold man has been confirmed to have succumb to hitinjuries after being in the head with a brick this weekend as well as nother 15yearold boy is in Critical Condition in hospital after reportedly being hit in the head with a canister. So obviously, there is no end in sight right now and escalationeen an of the violence that youre screen. On your we have, of course, the london. Minister in this is what is she doing in london, and of all there to e went romote hong kong as a dispute resolution center. Is the irony lost on anybody in the government . Dont want to comment on this necessarily, but she as coming out of meetings in london where she was there to promote hong kong resolution center. Adversity is on fire, resolutionand no in sight there. She was surrounded by pro protestors in london. Was tumbled, fell, slightly injured. Attack. As called an i want to ask you very quickly, the u. S. Has now in as well. This is garnering world i would attention and they ould expedite the Senate Passage as well many support of the pro democracy supporters . Yeah, bring up the marco rubio quote. Tweet. Hes basically saying they are going to expedite a vote senate. Bill in the the hong kong human rights and democracy act, which require an annual review of the privileged trading status that the bestows on hong kong. Beijing authorities have lso vowed unspecified countermeasures if this bill is passed. Keep in mind this is the senate version. House has their own bill. Reconcileon tonightces, it goes trump. Oldest conglomerate doubling down. On the way. G down. On the way. The oldest family owned conglomerate in the hilippines is furthering its expansion. 20 stake uire a in property developed in its irst investment for almost 240 million. The heads discussed the deal exclusively with bloomberg. I guess if you believe in fate, we have worked in miramar for many years, and for years ed before that, but today i hink its one of the happiest days i can say because it sort of lot of bouts. What was it about miramar that attracted you . What Growth Opportunities do partnershipthis to happen . We think similarly. The philippines has been an area where weve put most of our Capital Expenditures and built up our business over the years but its been over decade that we saw opportunities in miramar. From our point of view weve ourselves, to that we would love to partnerships in the region, and weve known socially. Weve been at different business gatherings. We run into each other on a basis, waving the flag. Were delighted to have been given this opportunity. Deeply grateful to his group for this and its a chance to participate in exciting growth area. Adding more than 200 million to your coffers, what will you do with the fund . So much to do, its difficult to really go details, but [inaudible] absolutely. Astonishing that the have a lot in common. Things that we do maybe on a scale, and even to the brands, you know, we have the same and weve been working together separately, o its quite astonishing that all of this happened. Its so natural. I think forward, has had a big leapfrog forward because despite all the difficulties and so forth, i think were extremely Solid Foundation for sustainable growth, which is very important. You can call it a rocket and then flop, but you can go go steady, and doing. Iramar is its actually well ositioned, uniquely positioned, i would say. On the initiative, as an outlet. When yemen opened up there was so much euphoria euphoria got muted because people were discouraged by the hallenges that investors faced when wanting to invest in myanmar. What policies need to be in place for myanmar to be the choice of the nation today . The government has to do a lot more than what they are doing now. Think, because there is an competition, even among the asian countries. Example of the recent chinau. S. Trade war. He opportunity is just right because these factories, manufacturers, scrambling to find a place to call home again for 20 years, 25 years. I think the government needs to capture that opportunity, provide the set of incentives. To ate enterprises have do their share. This comes against a challenging background of u. S. China trade war. Countries like mmyanmar caught in the middle . Lot ile there may be a of negative from this trade war, were the Natural Choice for in. Ufacturers to come weve got the labeler that you need and some countries ave got similar labor prices, but they have a very small labor pool so that you know, ng to, going to run out very soon. But we have a huge labor and that will be able to sustain this growth. So we have a lot of dvantages i think the benefits at his moment are actually more than the negatives. I think the u. S. China has resulted in a re40iform reforming. Its unusual that you get changes in economy over time and when they happen thats when happen. Ities that was the chairman and c. E. O. , and the executive speaking exclusively with our coanchor. Quick check now of the latest business flash headlines. For urgent government release after have its worth corporate loss. Facing a demand, alibaba charge loss that led to a net worth of 3 billion. Indians second largest phone operator hasnt seen any profit since it was 2017. D in affiliates of top apple supplier foxconn is ready to invest more than 2 billion to expand in taiwan. Largest e the migration so far of tech production away from China Companies e seeking to avoid the trade war. Increasingly they are reassessing their reliance the tensions run on. Wants to protest a deal to microsoft. Its worth up to 10 million amazon says there has been unmistakable bias and political influence. The infrastructure contract has been expected to go to Amazon Web Services but last given to microsoft. Time now, were looking stock. Ippine the most traded company on pacific index. Down a moment for just a there was a hird quarter net income decline. This is a company which has sectors different under its belt or industries belt. Its it operates consumer, food, managing hotels. Also provides apartment management services. It also has banking and services as well. It has robinsons land here as well. For an exchange of setting highest sales right across its businesses as well. T is one of the most active. Lets have a look at whats going on. If you want to have a this, there we thousande got five times more shares changing hands, and 8,000 plus hands, in ould say, increasing volume there, the robinson land there as well. This is bloomberg. This is bloomberg. Its almost 11 30 a. M. Singapore. Were in the middle of the trading day. Momentumorming the that youre seeing across the rest of asia. We had fairly positive through y coming from larry kudlow saying the phase one china deal could be down to a short stroke. Im also looking at singapore turning negative first time in a decade. 2 a far this month 6 a year o earlier. Thank you. Were going to start with talks. Ina trade they are said to have stumbled over washingtons emand that beijing spell out how it plans to purchase as much as 50 billion of per year. Ce were told the chinese negotiators are pushing back they roposal that provide monthly, quarter and even annual targets for orders. Beijing continues to insist that the two sides must agree to a phased rollback of tariffs. Fed chief jay powell is calling on lawmakers to tackle the growing budget deficit. To the House Budget Committee he urged congress to act to reduce the federal annual nts shortfall which is approaching a trillion dollars. Large deficit makes it harder for congress to cut taxes or boost spending when the next recession hits. The idea that countries that borrow in their own cant get into trouble is just wrong and the idea that debt doesnt also wrong, if those appropriately ascribe to that. Fires ustralia bush continue to rage across much of the eastern part of the country and are clearly from space. At least 60 separate fires are burning in New South Wales with four people known to have died. Blazes threatening northern sydney were brought under residents in queensland are being warned that weather conditions are turn hotter and drier this weekend. European Investment Bank meanwhile has adopted an unprecedented plan to end funding for projects involving fossil fuels. Its part of a move to ecome the first climate neutral continent on the planet and it includes support for clean energy deals. With more than half a trillion dollars in outstanding loans, it is the biggest Multilateral Financial Institution in the world. Its owned by eu member states. A day. News 24 hours on air and at tictoc on twitter, powered by more 2,700 journalists and analysts in more than 120 countries. Sue keenan. This is bloomberg. On with going Bloomberg Markets. Index up by 2 3 of 1 . E were heading for the worst week that weve had since august, and indeed moment showing a decrease now over the 1 . K, about nikkei,. 8 of 1 is just after the lunch break again, trading about 28 just minutes from now. What the ally see key drivers are. Economic adviser larry kudlow saying an agreement trade is coming down to the short strokes. This is where we find progress on a trade deal with china, helping to lift sentiment in world at of the least. Concerns about the difficulty of completing a one pact, and we also halt the eally. S. Stock rally that had taken it to market highs. Quarter till the top of the hour, 12 minutes from now, on the futures, perhaps well be seeing a little bit f a gain, rupee, just 81 pesa. Elow 72, thanks. Bitcoins recent rally is and technical signals suggest the biggest ryptocurrency could face further head winds ahead. He trading range has diminished to its narrowest since june. That indicates an inflection oint could be on the horizon. However, there is another view. Our next guest is a leading market n the crypto and says bitcoin could top very soon. The Largest Crypto Exchange by trade volume, he joins us here in singapore for an exclusive interview. Us. T to have you with how do you see this momentum continuing, articularly when there is still so much opposition from regulators, from the ikes we heard from the former president january claude saying bitcoin is and not the future of money. Different kinds of views. At the short term view, bitcoin is a smaller market cap instrument so there will be volatility but if you look at the fundamental technology and you look at a view, a phiyear or 10year horizon were bitcoin zon that will stay, the industry will get bigger and when the industry gets bigger the go higher. Spirit there is a lot of interest in the block chain technology. The president being quite bullish on blockchain. This is very different to President Trump has tweeted on clock chain and coin bit itself. Into it, ou read and the upside . China is very pro will logy, so china invest very heavily in technology. So given that china has already made that move every country in the world will have no choice but to follow or move faster hopefully. To ill be pretty hard move faster than china to be see t so i think well a race there. On ry [inaudible] also, for chinas comment is really about the lockchain technology but you cant just learn about the Blockchain Technology without learning about cryptocurrency. A lot more people who understand bitcoin, if youre in other currencies. Well see a very strong option there. Here, how about, you spanned here, how is hats the market looking like . How important is singapore in this . How big is Southeast Asia whats your next frontier . Sure. I think singapore is a key this area. Singapore has already played a very leading role in the doption of Blockchain Technologies and cryptocurrency. Has some of the smartest government regulators around, and they in depth understanding of Blockchain Technology and cryptocurrency. Upheld some of the most rigorous and sensible regulations. Will hink Singapore Play a key role in Southeast Asia and beyond. Im rather interested in what you will be doing in hina and what your china strategy is given also, there is a speech about blockchain recently, and effect on huge the space. Connected ch was with advising jinping, saw heir stock go on an absolute tear. Yes. So were also seeing that happening. Simple. Tegy is very i think we want to follow the recommendations very to ely and we want promote the Blockchain Technology, research and development and were of ing at a number initiatives in the area and e just want to help out where we can. Libra . D you list cant make predictions before it comes down so well take a closer look out but our matrix is very simple. We look at the users. You using s are it well have no choice but to list it. From the comments that weve observed, most of the attacks against facebook, well ticularly have to see when it comes out. There is still so much regulatory concern over toes, and we mentioned before there, have been alls for more Regulatory Approval to come through globally as well. Does that affect whats of ening in terms institutional interest . Were definitely seeing a ot of institutional interest picking up. I think the regulatory still haunts us some countries but i think were seeing an adoption. Were working with the of ukraine advising them on regulatory frame works and we work very with a in singapore regulatory body here and we work with a number of other regulatory bodies around the world. Are improving very quickly. In september you announced that you were etting involved with another market. Where are you with that and office in ened a beijing to facilitate things . Were servicing the market, the same in china. Have an office in beijing. Thats a rumor, thats not true. To turkey,eading the turkish Capital Markets summit. What is happening there quite a lote is of interest coming through in that space. Yes. Is a very seen strong interest by turkey, and this kets, conference, organized by the government there, and so im to learn more about it. We are supporting that we want to support that market more proactively. You so much for coming in. C. E. O. With me here in singapore. Coming up, were going to head to mumbai as indian arkets open on the final trading day of the week. This is bloomberg. Y of the week. This is bloomberg. Bloomberg markets. Yet, climate threats could issue. To be a big the Hong Kong Based think tank thinks that threats of could threaten key sectors of growth including logistics, trade, and finance. It. The quality of joining us, our guest. Walk us through the issues really ve been looking at. Risks. Re a couple of much its actually drier than you think. Eight of the 11 cities are middle east. Its hard to believe with the amount of rain that falls. You wouldnt think so but highly populated and there is a lot of economic industries, et cetera, here needs a lotthat of water, so on a per capital basis its very dry. Is that going to impact the growth, like you just by 2030, because there will be about seven million more people, which the equivalent of two new york cities, and the gdp will be bigger than germany. Its drier y than the middle east, four hong ities, which are kong and three others, which thats of this gdp, one risk is this dryness. The second is actually, as of said, we have lots rain so we have to deal with he floods but also typhoons, and we had one last year which you would hink, hong kong was quite resilient. On monday we are all back at work but we were very lucky, some mapping in that report and what we found, if the typhoon had tide and at a slightly different angle, a more flooding would have ccurred because the tides would have been much higher. And then, like you already this would impact the logistics. So we did some mapping. Looked at the ports and airports, we found 43 of 50 and four of seven airports could be impacted by these tides. Is that what we have as the tides for the moment, or should we see sea levels to rise . What i put to you, we managed to get away with it if it aint broke dont fix it. Things will be getting orse because unform were heading to 34 degrees of global warming, not the degrees that weve been planning for. It just means impacts will worse. H we need to start planning. Were not doing that. Were hoping that things get but the u. S. Is pulling out of the paris wont nts and that help the situation. Obviously, a lot of call for the government to do more. Keen to get your thoughts on that but in terms of how investors would eel about this when youre citing some of these diaries, what would be some of the upside for those in the to invest greater bay area long term . There are two aspects to this. Risks, oking at the and then figuring out the opportunities. So to understand the risks, we need to actually change the conversation a little bit. To look at water risk, not just carbon, when it comes to climate change, are se the risks imminent, already here, and they are real. Econd, is we need to start mapping the assets because hese are geolocation calories, and thats the only way youre going to your assets are going to make sense. No point planning or 1 1 2 to two gloomy future if were heading to three to four. You need to engage the invested youve in. Understand how regulations might impact your portfolio then look at how you can change your allocation within your portfolio. Selling some of your assets and investing in new areas . And the opportunities here, getting a ce is real push in this. China has the biggest market in the world and hong kong trying to push that as well. And what if some of the business what are some of businesses doing as well to alleviate concern and work in conjunction with regulations . So we looked at a few companies in this and i have most organizations are still at the stage where they are starting to a erstand that this is risk, but they are not taking much action. Unfortunately. Disclosing not it anyway, so we really need a lot more talk and onversation, and Public Disclosure about what is being done about it. Because right now, the risks slightly underestimated, and were not talking about it. Thank you so much for joining us. Interesting stuff. Concern inly a big looking ahead. Indian markets are open. Go to mumbai to have a look at the session. A did manage to see marginal green picture on thursday. Have we got so far . Sharp ar it was a recovery from the lower levels, we ended the day marginally. Green, indicating a positive start. Broader markets. Nikkei 500, nikkei trading 11,900. Traders have been watching out for the psychological ark of 12,000 which we touched last week but once again at those higher levels there is some profit taking and the focus has been shifting to macros. Coming t some data out in the last few days. Moodys got their guidance to about five points. All of these factors together [inaudible] levels. What are some of the stocks they are attracting at the open. One reporting a loss that was mainly due to a one time charge. Thats right. They did post a loss but quarter ally the has been much better than what they were expecting. As you can see, the margins expackeded to 42 and while the analysts were xpecting margins of about 39 the stock has also opened in green. 2 . N yesterday by almost and that loss which they if you look at this calendar year the stock has given a runner but remember in the last five has not doneck too much. The other one, reacting to ts numbers which were in line with the realization, lor by 10 . And lastly i think investors favored industry, the numbers were much better june quarter but still, the growth margins up. Spike there was some pressure with regard overall, numbers lined up 12 and the bottom nine was posted at 23 . Is up 1 in the opening session. And have great weekend. Coming up, barber has kicked listing inondary hong kong. This is bloomberg. G kong. This is bloomberg. Youre watching Bloomberg Markets asia. Im Juliette Sally in singapore. In hong kong, just at the having a look latest business news. Still ranks toward the bottom of the magazines survey of u. S. Automakers. Earned an average rating, renewal of he endorsements that were removed earlier. Ranked among the worst in survey which is again dominated by japan and korea. A taxas been hit with in new jersey. 650 million in unemployment and Disability Insurance charges for classifying drivers as independent contractors. Bill goes back four years and includes 120 million in interest and penalties. It will challenge the ruling because it considered its drivers to be contractors in new jersey. The flip phone, smartphone with a foldable display that gives the brand a unique selling point against apple and samsungs a est and it looks like modernized version. 1,499 and will be preorder in december. A verizon exclusive in the u. S. An auspicious set of ahead of its listing. Stock code ed, 9988, which rhymes in with prosperity forever. There has been an enormous response, which could raise 15 billion u. S. Dollars. Speaking of alibaba, its cofounder is urging the china to resolve their trade dispute or face years of turbulence. Jack spoke exclusively to africa. G in west mean, the trade u. S. And chinad relationship we have to be very, very careful. Think its so important the usa to d Work Together to support the economy. The prosperity, Share Technology together, for so years, china and the u. S. Has been working together. Here is a problem thats very natural. If there is no problem, its not natural, all right . So when we have problems. We should solve them. Create more problems. Were not in a hurry. E dont have a plan for short term the because as far as financing, were very profitable. Weve grown healthy, and we a lot of things we want to do to make sure we have enough investment for the future. And do you know what exchange would you be looking at . Say, were i not thinking about when to marry, so were not thinking where to marry yet. Cofounder, speaking exclusively to bloomberg in in west al of togo africa. Tune in this week for coffee with rum on bloomberg television. Stephen angle speaking with away founder and c. E. O. , with a panel of guests, ished digital sovereignty in the future and 5g technology. Hong a. M. On saturday, kong time. P. M. In s it 9 00 the u. S. We are seeing some reprieve coming through in asian equity markets which nice for the end of the week and thats basically after larry cud le phase one china deal is down to the short trokes and both sides are communicating every single day. Same stocks and yields rise. Of 1 . See, up. 7 the Hong Kong Market getting a final bit of reprieve terriblets been a week for hong kong equities, leadingone actually with gains after those comments. Weve also been seeing money going into the aussie and kiwi. Traders telling bloomberg clients are not willing to run the risk of having to pay higher levels for spot next week in the vent that a deal is agreed to over the weekend and we see currencies react positively. We did see an injection that failed to lift a rits showing maintaining r maintaining liquidity rather than having a sweeping stimulus. Hong of it. The bank under these protests. House prices out of china, weve got industrial kong, down over the res last five days. A rough time for japan coming out in just over half an hour. Gdp numbers are out in the next two minutes or thereabouts. This is bloomberg. Bouts. This is bloomberg. Taylor i am taylor riggs in San Francisco in for emily chang and this is bloomberg technology. Coming up in the next hour, bundle up. Apple considers bundling Digital Services as soon asked 2020. We have details. Plus, the standoff simmers. Alibaba cofounder jack ma says the u. S. And china risks 20 more years of trade tensions