Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

Lets take a look at what is been helping foment further gains across the asiapacific. That is the futures contract for the s p up to tens, hang seng three tens of 1 . And the nikkei has buoyed a bit. Also the topix doing rather well. We have a cna a tad week. Looking at that as we do. Also the yen, and the boj. 41 day since the boj came in and bought a sizable chunk of stocks in the japanese market. Someat stealth tapering, people are arguing because the yield on the 10 years unchanged. The yield has been lurching lower eight basis points. Weekhas been put less a and see what is going on in regard to the haven stages. The learn not willing to look at and take on risk right now. This is of course after the Election Results or we saw the landslide victory when it comes to democratic camp. She was talking about how she is ready to listen and stands by previous stances on protest demands. People who felt that our government has not handled, deadly the legislative exercise and its aftermath. But it the legislative exercise and its aftermath. But i have as i have sat on the fourth of september, we have officially and formally withdrawn the bill. The next step to go forward is really as you have put it, to engage the people. We have started public dialogue with the community. Fortunately, with the unstable environment and chaotic stable situation i cannot do more that engagement paired i hope the environment will allow me to do it now. Places the other experience, particularly in the u. K. After the 2011 talking ham riots, we are now modeling on that arrangement, to speed up an independent review committee to look at the causes of the social unrest which has lasted for so long in hong kong. To identify the underlying problems, social, economic or political, and to recommend measures the government should take. I sincerely hope that these will provide us with a way forward. Aftert me stress that these five or six months, hong kong people have realized very clearly that hong kong can no longer tolerate this chaotic situation. Everybody wants to go back to their normal life. This requires concerted efforts of everyone of us. Repeatedly,id resorting to violence will not give us that way forward. Maintaine, help us to the relative calm and peace that we have seen in the last week or so. At provide a good basis for hong kong to move forward. Thank you. Ok that was the hong kong chief executive outlining her reaction to the district elections which took place over the weekend with overwhelming support for the prodemocracy camp heard lets take you to new york and su keenan is there here is your first word news. Su thank you, david. The latest on chinas imports of u. S. Soybeans. They fell to the lowest level in three months in october. That is with shipments delayed at mainland ports. Deliveries slumped to 1. 1 million tons on 1. 7 million in september paired still well above the 67,000 tons of a year ago. China is also buying soybeans from brazil and argentina, but has promised to increase imports from the United States. To beijing now, it says it continues to support hong kong chief executive carrie lam and her government despite the overwhelming victory for prodemocracy candidates in District Council elections. But it has summoned the u. S. Ambassador to experts strong opposition to what it calls american interference in hong kong. A statement on the Foreign Ministry website accuses rushing 10 washington of supporting violence. Isoman, it says it optimistic that the war in yemen may come to an end. Foreign ministry yousef ben lowey held talks in washington and says a deal between saudi arabia and rebel forces can be reached to stop four years of fighting. The u. S. And oman say only applicable solution can and a only a Political Solutions can end conflict that has killed thousands and left millions of starting and displaced. Westpac shares opened higher in sydney after ceo brian harter asd he will resign next week the bank investigate Money Laundering scandal. Harker has said he would personally lead an investigation at westech after the letter was accused of breaching financial laws 23 million times. He will be succeeded in office. Y the cfo peter king global news 24 hours a day on air and on twitter powered by more than 2700 analysts in one hunter 20 countries. I am su keenan. Its is bloomberg. Thank you. A big day in hong kong. Alibabas debut in the city. Checking the shares now at 188, up 7. 1 . Sophias live at the Hong Kong Exchange. We heard from daniel zhang the chairman of alibaba and ceo. The Hong Kong Exchange ceo charles lee giving a thumbs up this morning. Plenty of thumbs up even during a challenging time for hong kong. We are seeing a positive view for alibaba shares. On the state earlier had the ceo joined by alibaba Senior Management and figures from the government. You had hong kongs finance secretary and a former chief executive mark a mild stone for the city as well to the company that did failed to list here in 2014. As for jack ma, he med an appearance by recorded video he was not in the room today. You had the Hong Kong Exchange chief charles lee here who said he is confident that other companies will also,. Alibaba paving the way for other tech unicorns after rules were relaxed last year in the city. Plus there could be a review of alibabas eligibility to join the hung tech index and a lot of anticipation around inclusion of stocks which can allow chinese investors to get in on the action. According to the cfo of alibaba, first time on sure investors made one up one third of the buyers for the offering. Ats morning shares opened 180 seven hong kong dollars heading a high of 189 this morning. Rising as much as 7. 7 . Trading in hong kong and a slight premium through new york listed adrs. Which traders are bullish on. Their ego. A good day so far. Sophias by the gong. At the Hong Kong Stock Exchange. Coming up, we are betting on biotech and having a look at that trade. We checked the outlook and the standout stocks. Live out of beijing. Global growth and a firstquarter recovery discussing what 2020 may have in store. We will do that with chief economist chetan ahya of Morgan Stanley chetan ahya this is bloomberg. Welcome back. Lets talk about next year. This combination of lower trade tensions and easier Monetary Policy will of Global Growth from the First Quarter up next year. The title of the latest report from Morgan Stanley, the late cycle expansion, will be extending that is a 2020 vision. Indeed and our next guest is Morgan Stanley chief economist and global head of economics chetan ahya and this is what we have, a recovery taking place. Your sing it with the level of m a activity starting to appear. You are seeing it. That tends to be late cycle, doesnt it . In terms of what we are seeing our Monetary Policy and trade tensions. In the last seven quarters never had both the factors moving in the same direction. From this quarter that is happening. That is why we expect a recovery to take called from the First Quarter of 2020. As 2. 9 in this quarter Global Growth and it will go to three point 4 by the Fourth Quarter of next year. So it is recovery that we call a mini cycle recovery in a late cycle expansion. A 2017 version paired what im trying to figure out is do i have to start figuring out to have to wear about inflation . Do i have to worry about inflation . We do not think so. In 2018 we reached 4. 1 on Global Growth but we expect three to have percent by the First Quarter of 2021. That is the reason we are calling it a mini cycle. It is not that strong a recovery because while we would have this many face deal signed we do not have an exit take in that thatwill be reduced tariffs will be reduced close to where we were before the escalation. And we are late cycle, we do not think the recovery will be as robust as 2018. U. S. The latest line, the and china got on a call, they are getting closer to a phase i deal. Do you see this spring any type of investment, capex or anything that helps businesses ease uncertainty, if we did get a phase one deal . The think we do see stabilization in corporate confidence the point we reached, if we had seen escalation, the corporate light the corporate sector wouldve taken the decision to exit workers which they are not doing so far. Plus the thing we got out of the phase one deal is the corporate sector was a ok fine, the cycle is not ending and i do not need to exit workers. That gives confidence what we see is that monetary easing taking place should support consumption before we see that capex recovery. We have a modest recovery beginning in the Second Quarter of 2020. But in the next few months it will be consumption driving recovery. Consumption has been doing that and we have seen the data in the u. S. Not many other places. It is that cap acts and if this does not get signed, if it does not get a deal, that is where capex takes a hit. Because people are not sure what to do. I totally agree. If there is no phase one deal you have to worry about retrenching or not recovering. If you just look at capex trends we are in a pretty weak point, so all we want to see is stabilization of capex and not really a quick recovery. Whenery will not happen Capacity Utilization is low. First you have to see the consumption recovery. Because Interest Rates have declined across ems and dms, we see the initial sign of consumption picking up. If you look at one of the big ems, brazil, youre seeing the consumption data beginning to turn up pretty expectation is in all the other emerging markets you will see that improvement in consumption and the three or four months. Where does the easing cycle continue and where does it end, and terms of Central Banks . We expect more em Central Banks in the region, the bank of korea, the bank of philippines, india and one of the other small countries which are going to cut Interest Rates. But it is largely emerging markets. We think that dms are largely done with the Monetary Policy easing. They will just say put on hold with the easier level of Monetary Policy. We think average Interest Rates will reach a sevenyear low by march, 2020. So that is a sizable amount of monetary easing which is also the reason why we expect this recovery. Recession concerns . How has your view changed now versus six month ago . Do you think other effects all the recession fears are fading . Recession fears have reduced peer in terms of our thinking we are less concerned about session risk. We have a model on bloomberg which for the u. S. Puts out the probability of recession. That has come down sing nick atlee. At that significantly. At the peak it was in the upper 30s now is in the low 20s. The fed has come to the rescue and cut Interest Rates. In the meantime we have seen both optimism is increased as reflected in the 10 year bond yields going up. Thats why the yield curve has steepened. That has been a critical variable that has reduced the probability of recession to the low 20s. The unconditional probability is 20 . Having it a little higher than 20 is not so worrying. At this point in time it is less about recession risk. The debate is really, do we get a recovery at all. And we do think there will be a recovery. Ago on the weeks show we had a guest telling us tout how we could be going 2. 25 or 1. 58. , thatlds on the 10 year could make the thought of a less likely. Thats left right thats right. We expect the 10 year bond yield to go to 2 by the Second Quarter of 2020. That is a critical variable helping the confidence on growth coming back. And recession fears reducing is a key reason why we are forecasting the 10 year bond yield to go up to 2 . F dm Central Banks are on hold, em continues to cut, it is a mini cycle move, looking beyond 2020 should i be worried that we are looking at less bullets, if and when. In other words were Central Banks continue to lower rates . The fed is about the only one above zero when it comes to dm. Ems are the oil once you expect cut further. You expect a mini rebound next ones ems are the only you expect to cut further. You expect a mini rebound. Global Central Banks will not have enough bullets . That is the serious issue we are facing since the crisis began. Every central bank in the developed markets is dabbling with this issue having reduced Monetary Policy rates. We have seen ecig in amount of policy. One way we look at it is to catholic this on a global average by looking at the weighted average policy rate and it has gone lower than 2060 levels. This zero bond issue for dm Central Banks and yet we got the recovery. So we are not forecasting a strong recovery, but for the recovery we are forecasting we think they have enough Monetary Policy space. I think the question you asked should be more put in the framework of if we do get a down cycle, then what happens . Because they have used up the space they have. If you going to a next downturn, we do not have much Monetary Policy space. So i wrote a big paper on this saying you have to use fiscal policy more actively. In fact, if you step back and beyond this cyclical situation we are seeing in global economy, this big picture structure cycle is similar to what we were in 1930s. We had this problem of debt, demographics, disinflation, and the learning from the cycle was you have to use fiscal and Monetary Policy in tandem. We have not been seeing that so far. In the next downturn, our gases we this recognition we guessed that this recognition will, more and you will see that activity a fiscal policy because we do not have much Monetary Policy space. Were going to take a break. Thank you. Chetan ahya Morgan Stanley co will stay with us. We are about an hour in. Alibaba trading in hong kong, shares are up 7 . Plenty more ahead of the program. This is bloomberg. Business flash headlines, google said it fired for employees forweighted terms violations of Data Security policies. Callsmpany for what it violations of data secretive policies. That may escalate tensions between management and activist workers who have been protesting for months about a range of issues. They include googles work with the military, centered search in china and claims of Sexual Harassment. U. K. Havets in the dimmed after looking for a new phone equipment supplier. Evaluating other vendors alongside huawei and nokia as it prepares to connect millions of British Homes to optic fiber. Huawei is accused of being a security risk, something which it has of course denied. The other big story, monday laundering scandal. A resigning over the allegations that the bank committed the biggest violation of laws in austrian history. Managing editor for australia has the latest. Ed, the first time in five days im looking at green on the stock. Yes that is right. The share market has responded positively to the news that brian hartz are stepped down this morning. The third big for Australia Bank ceo to fall on his sword in the past couple of years as the industry here in australia reels from one scandal to the next. A list of possible contenders to at thebrian hartzer helm of a strong second biggest bank. Mentioned by banking analysts and bank watchers here in us dry up. One is david bloomberg, westpacs Consumer Bank ceo. Lindberg. Anothers craig drummond. Mike barrett who was thought to be in the writing to become national Australia Banks ceo. And greg ward possibly. If they manage to lure him away from Macquarrie Group where hes the head of banking services. We got the man at the top as you mentioned fell on his sword. Does this alleviate enough pressure here on the bank now, what else did he have to do next . Of the will be the hope chairman who spent the last few days talking to Institutional Investors to proxy Advisors Ahead of what was a real crunch a dm for the bank on december 12. The fear was that a voter backlash against this Money Laundering scandal could precipitate about against the banks pay reports, the Remuneration Package for executives. If that happened again this year after happening last year, that could then have precipitated a motion to call for the entire board to step down. The hope within westpac is that andesignation of hartzer, the chairs own announcement that he will step down in 2020, will lead that pressure and save the rest of the board. Australia baking choke a got in recent times. Thank you. Lets have a look at some of the movers out there as we head toward the break. Take a look at what is going on. This is the position we find ourselves in. , look at the honk saying just a while ago it did turn down hang seng is slightly up but hardly anything, three points. This is what we have right now. The bottom to you see also related to a lesser extent related to Hitachi Chemical the bottom to down to Capital Raising here at the back of bank of queensland institutional office. My memory serves me correctly lots of movers here overall tilting to the upside. This is the imperial palace. The nikkei up by its extensive 1 . 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. And now get 250 off google pixel 4 during Xfinity Mobile beyond black friday. Thats simple. Easy. Awesome. Click, call or visit a store today. You are back with Bloomberg Markets asia. Lets check in with what has been going on potentially with Monetary Policy. Are there enough bullets left in the gun as it were from the different economies and what to they need to do, ultimately . And when we see the effects of that, everything that is been started this year, considering the lag and when we go for 2020. Lets bring back Morgan Stanleys chetan ahya here in the studio. Ive had a look at highfrequency data recently. It is neither here nor there which i guess is a good thing. Is that a sign that the bottom is starting to form across macro data . Of framework it took four quarters after monetary easing started to recover in the previous cycle. In the same way, we expected to take four quarters to monetary easing started in the First Quarter of 2019 and gross recover in the First Quarter from the First Quarter of 2020. But we are seeing a ton of soft indicators getting to show the turn. When you look at the u. S. Market pmi, chinese charging pmi, i4,uropean port pmi new orders there are all Different Things happening as we speak. Fiscal, fiscal policy is an absolute necessity. Are we getting it . And where are we getting it, because we are not getting the u. S. Here yet . Structural as well as cyclical perspective you need fiscal policy to get the strong recovery we want. As i mentioned earlier growth is recovering only up to about three point 5 by the First Quarter of 2021 globally. If you want to go back to previous cycle highs which were 4 you need the fiscal policy support. Unfortunately at this point in time, we are getting only a moderate amount of fiscal easy and dms only 20 basis points. Thoughes a danger here when you have Monetary Policy read down real rates to negative a levels, you can borrow a lot and then when Interest Rates have to go up and go up significant lay, then you find close as wearing the who was wearing no clothes. Yes i think that problem occurs if the u. S. Has to tighten. As we stand today, the u. S. Monetary policy Still Matters a lot for the Global Financial system. We do not affect the fed to hike anytime soon. We expect the fed to stay on hold. This problem may come sometime later. I would say this problem will really come to the fore if you to get that fiscal policy response. Without the fiscal policy response, we are in an environment where Interest Rates are going from a low for longer. We have seen that some physical easing when it comes to china. Do you think that has helped and setting a floor for growth in china . We have not seen it just yet. And the data has not gotten that much better. In chinas case i think this time is different. As we know. [laughter] if you just look at the mix of fiscal policy easing that china has taken up at a grass level, the stimulus was 340 million, net level was 215. When you look at the breakup of fiscal stimulus i like to look at a grass level, from 340, to hunter 20 billion is because of tax cuts and so security and Social Security reductions. This is a different mix beijing has taken this time. Because of that we think impact on growth be slower. When trade tensions are happening, corporate confidence is not strong. These tax cuts are possibly likely to be saved. When you get that kind of a phase i deal and improving confidence, you will start to see the fiscal stimulus kicking into the private sector confidence. If you get that kind of phase i deal. It is not only that chinas going glow 6 , also the structure of economy and the growth they are delivering to the world is not the same as 10 years ago. Who get hit the most by that change . Everybody who is exposed to chinas cycle. On a structural basis, what chinas doing is relying less and less on investment is a push to driver to growth. In every down cycle we are seeing now. To that extent anybody who is clinging onto the u. S. , to chinas investment cycle i dependent on that machinery and exports is going to have to find a different area took sport that capacity. Go a bad lets lets go to third biggest economy in india. What has gone wrong and what can they do to fix it . It is a deepory, cyclical slow down the economy has gone to. In 2013, as messick demand slowdown. As the demand was recovering you have the china and em slowdown. At the economy was recovering you had demonetization peered as the economy was the blessing you had gst. That he have elections. You had a global slowdown. In this. You have built a sixyear long destocked google d cyclical slowdown. In this problem i think is really now just not having other oneoff measures being taken by the government. As a Global Recovery comes through we think the Indian Economy will be on the mend of a finally. Is nobody that, there who believes in it because they have been denied that growth story for so long peered but i cannot practice my macro just on the basis of what has happened in the past. When i look forward i think it has finally likely at a place where it will be able to deliver that recovery. On a positive note, let us leave it there. Latest 2020 vision of how the world looks peered and it is slightly better than the current situation. You may have a breakthrough, at least a compact between beijing and washington, that story and the rest of the first word news, from su keenan. We start with china which says it is has reached consensus with the u. S. On resolving what it calls relevant issues. And that the two sides have agreed to stay in contact on the remaining points of an initial trade deal. The top negotiator spoke to the treasury secretary and trade representative robert this morning and discussed core concerns. The train negotiator says he is cautiously optimistic that they will strike an accord. Carrie lam of hong kong meanwhile offered no new concessions to protesters in her first comments since sundays election driving. She acknowledged the results reflect unhappiness with her government and called for more peaceful dialogue. Beijing says it continues to support hong kong chief exec at of carrie lam but did some of the u. S. Ambassador to express strong opposition to what are called american interference in hong kong. Sticking with china, it says that is to be planning a record sale of sovereign bonds in dollars with an offering potentially worth 6 billion. We are told to the ministry of finance is considering tenders of 3, 5, 10 and 20 years and what would be a Third Straight year of dollar debt issuance. The offering may come as soon as tuesday and will follow chinas first eurobond sale in 15 years. Finally, the international is calling on the japanese government to work more closely the imf is calling on the japanese government to work more closely with the bank of japan. There cut their growth forecast for the third time this year. Green light to shinzo abes plan stimulus package but called for continued fiscal spending to support growth and inflation. It is urging or ambitious structural reforms. Appropriatee it is for the bank of japan to have a targets that has proven to be helpful. And while not yet achieved, the direction is, of inflation, have been upward, and most important, deflation is now a story of the past. Global news 25 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than one hunter 20 countries. I am su keenan. This is bloomberg. Thanks. Coming up, we examine the chinese biotech outlook and betting on the space. Plenty more two,. This is bloomberg. Plenty more ahead. Lets take a look more up on the healthcare space in china. Though stocks have been the worst performing sector in the. 2t week as analyst uncertainty around Price Reductions for National Reimbursement drug list. What has been attractive in the space, a longtime biotech investor based in the u. S. Lets bring in brand loncar ceo, Loncar Investments who focuses on chinas bow tech sector. Tell us about the Seismic Shift we have seen in the sector. Chinese Health Care Long seen as chinese copycats to the western world, now they have become more innovators. What is driving that change . Yes, it is interesting. I know the big stockmarket news this morning is alibaba. And im a big believer that the next alibaba is going to be a biotech company. What i mean by that is a couple decades ago you had onto for nurse like jack ma who saw what was happening in Silicon Valley and started what are now worldclass innovative leaders in the tech sector. We are in the very beginning so that happening in biotech. I think there is a Bright Future here. For example, beijing today, i visit a company baijin yesterday. To weeks ago they had a cancer approved inkinza the United States the first example. A great example of how inpatient starting to happen here today. We are in the early stages of that and i think it will be exciting the coming years to watch it unfold. Oncology the pot of gold at the end of the rainbow, isnt it . Where are they with that because there seem to be all sorts of announcements coming through from various bio tax in china. Who has got the best various biotechnology firms in china. Who has the best pipeline for that and what other things might you be excited about . Also things like al timers . Alzheimers . Yes cancer is a big one for two reasons. Number one, that is where i think the most impact all science is happening peered we have immunotherapy, using the immune system to treat cancer and targeted therapies. A lot of exciting things using genomics and cancer. Also, sadly, the unmet need is huge. Here in china. Literally, almost a third of Cancer Patients are here in china. Until today, they mostly received generic drugs and older chemotherapies. Thank you lee, today, now these new innovative drugs are being made about what to them and chinese copies are having to develop them. Theres a covenant called jens scrap that has a division called the cell therapy genscrip, their Division Legend does that. Theyre such leaders that Johnson Johnson has partnered with them and is using the Chinese Companies still Cell Therapy Technology in europe and United States. I would watch that. Alzheimers is a difficult one. There was a drug approved here a few weeks ago. We are still trying to figure out what that is about. The science is not quite there yet, sadly. In the same way that it is in oncology. Hopefully we will see more be church in that direction. We are a little ash hopefully we will see more research that traction. Hopefully we will see more research in that direction. It is not as if these Chinese Companies woke up and will and were good at it. How much of their success is down to support from the government . It is huge. It is actually a perfect storm of things that are really catalyzing the Innovative Biotech sector here. Government is certainly one. Pharmaceuticals is part of made in china 2025. Theres a big focus on it. Another hugely important thing, when i talk to executives here, they actually say this is the most important change. Chinas fda, which is now called the National Medical products administration, join something called ich a year and have ago. Ich was created by fda, the european regulators and the japanese reg lighters, to harmonize reg i standards across the globe. Companies that, china now are developing drugs and exactly the same way as other companies around the world. For example, beijing bayjin, most of their data for the drug approved two weeks ago came from china. Fda accepted that because the trials happening here today are of the same kind and of the same quality that are happening anywhere. So joining ich was an important thing. You have stockmarket reforms. The Hong Kong Stock Exchange last year changed the role to allow bio tax. To allow biotechnology firms. This is very capital intensive business. You need to be able to have a listing venue. Also for Venture Capital firms have exits for their investments so they can reinvest their money in newer startups. There is literally for a really important things that are all coming together. I think you are the right place at the right time to really catalyze this biotechnology revolution here over the next five or 10 years. Brad, there is always the risk of transparency or lack of transparency, when it comes to a lot of these Chinese Companies. Isre any kind of investor investing in the biotech space, it is hard to gauge the success of biotech drugs as well. Do see a difference in investing in the china space versus anywhere else and waterways to limit the risk . First of all the key is always diversification. I tech is the sector where that is most important. Biology is so difficult and as you point out, other issues like transparency, even Good Companies have setbacks. You have to be well diversified when youre investing in this sector. Is about tech investor we place is a biotechnology investor, we place big important things on medical meetings and when companys publish medical journals. That is happening more and more. Theres a big company a big conference theres a big blood cancer Conference Call coming up in december in the u. S. At a lot of Chinese Companies have cemented interesting clinical result trials to that. That is the Gold Standard have submitted interesting click results of that. That is the Gold Standard. We are seeing chinese companys participate more and more in these little settings like that. I would focus on companies doing that. As an investor, i do not want to just investing companies that are only inwardly focused on china. I want to focus on China Companies that want to be global leaders. Again, to use the technology analogy, the next alibaba and tencent, that are now global tech leaders. Companies like bayjin, those of aspirations. Do not just want to be leaders here within china. They want to be global companies. Those are the ones i am try to focus on. Clearly like that firm. Thank you very much. Coming to the open of the session in india, just under an hour away, a record on that sense ask. Sensex. Not quite there, 20 points away. It looks like the set up is right for us to make a new record high this morning. Yesterday saw a big pole after three b consolidation. You did see activity on the indexes. This is the penultimate week for the expiration for the month of november. All futures and options for november expired thursday, so a lot of volatility is anticipated a big runup we have seen has come on the back of some short positions we obtain seen. Constant basis short on the index. This rally that came that took beyond 12,000 came on the back of the shorts getting covered. In the last few days met up have been metals have been very active. That is one area to watch out for. Consumption is a story has been playing out well. Autos which went down and out over the last few months or so, few of those your players have started to see interest coming back in. A few of the bigger players has started to see interest. Looks like we are headed for the werd high of 12, 103 clocked in june. As been five months that weve struggled to regain the highs. Lets see if we can maintain the new records in todays session. Thank you. The latest out of mumbai. Looks like another green arrow day for eddie and stocks. The latest business flash headlines meaning while, alibaba surged on a debut in hong kong. Another green arrow day for indian stocks. Surged on itsbaba debut in hong kong. If fulfills jack mas dream of trading closer to home and will please policymakers in beijing. It is the biggest city since 2010 with shares up 7 . Puttingese unit of imax its money on the mainland shifting away from dependence on hollywood busters. Chinese like which films have been to events biggest hits in 2019. Imax wants half of all screens in the future to be chinese. Time is forecast to overtake the u. S. As the worlds top fill market in 2020. Top fill in 2020. In 2020. Lm market indigo is asked to they a 320nes until pratt and when units have been replaced. Indigo has been hit by a series of engine incidents in recent months. Retailer Harvey Norman is said to face shareholders this week amid a weak domestic economy and questions about its corporate governance. The company is a favorite of shortsellers with bare bets making 20 of its equity flow it the mostaking shorted stock on the asx 200 the shares have enjoyed a foreigner percent rise this year. Not bloomberg will be talking and speaking exclusively to the irish finance and us are at 9 30 p. M. Hong kong time at 8 30 a. M. In the ark. In new york. Also coming up the tuesday edition. Battle of the charts come a coming up. This is bloomberg. It is the battle of the charts. For bloomberg clients, access the charts on your bloomberg terminals and access at the bond with your screens. Lets kick things off in the land of the rising sun. Could morning. Today, equity markets are rising in asia. Tokyo is headed for another fresh when your high. I brought to a technical indicator. It is called the relative strength index. Gp rsi, it brings you what level your pages on terms of the rsi which is a momentum indicator which gauges whether your market is overbought or oversold, for example if the rsi level is above 70, for example it is understood that the market could be overbought. Which means can be bound for correction soon. If it is under 30, it is an indication that the market may be oversold. Right now, as you can see, it is above 70. So some people might in terms that as a sign that the market is ready for a bit of a correction. You can pull up rsi with almost any indicator. So if you want to check whether market is kind of overheated or not, you might want to try rsi. Can i do that with my mood . Yes you can. [laughter] we will go back to that. Hi. Oil has been rising over the past month or so on the back of trade optimism. It is trading near a two month high. But a father of five from here from here looks to be limited because record heating and u. S. Open auction will keep prices in check. My heart chart will show how my chart will show how american shale producers keep producing. The white line is crude Oil Production and the blue line is the number of working oil rigs. The oil output kept rising and reached a record high this month, even as producers drilled less and less oil well throughout this year, bringing that count down to the lowest in the market since 2017. Baffling, but. And the second truck and a slain why. The second chart can explain why. I just like your message at all, what a way to turn the music offer this party today. She teaches you, how she comes up with the charts. We will check out the latest charts today, all the ones you can save up for your future reference as well. This is bloomberg. It is all most 11 00 here in singapore, 8 30 a. M. In mumbai. The last hour of the morning session right here in hong kong, this is a look at our top stories. China saying is reach a consensus with the United States over trade issues and they will stay in close contact over remaining problems. Alibaba listing in hong kong propels a dream of trading closer to home and pleases policymakers in beijing. Westpac, the Money Laundering scandal claiming the Ceo Brian Hartzer will step down next week. This is Bloomberg Markets. The third day of gains on ms asiapacific index as china says officials are staying in touch on the phase one deals. Msci. We have seen a little dip coming through out of stocks and hong kong and on the mainland. Most we are seeing positivity in the region. Australian stocks also getting a boost. With westpac rising for first time in five sessions on the ceo seven down. No surprise youre seeing yields rising in bonds falling on this generally is gone mood. The japanese yen getting a back a little, it is actually lower for the fifth session in a row. The aussie has been up front runner half an hour ago on these positive trade headlines, study there at the moment. Just a little lift in the onshore currency today in china. The peso in the philippines is gaining up by 1 10 of 1 after the nations budget deficit narrowed in october and the philips will sell 20 or bonds today. Lets take a look at indian futures. We are 43 minutes away from the start of the session. We saw good gains. Sensex sing a record. Near record and we could hit new highs there. Nifty up by two thirds of 1 , ups and downs in the last three trading days, just off what would be a record. The rupee seeing the currency 5 down since to begin am july. A bit of strength coming. 71 rupees for the dollar. The 10 year yield been depressed , 6. 4out three basis points 7 . A bond auction today taking place in india that could materially impact what is going on with the bond market over there. With that in mind, lets get to new york what we have the first word news. Latests start with the on hong kong leader carrie lam. She offered no new concessions to protesters in her very first comments since sundays electoral dropping drubbing. But she acknowledged results reflect unhappiness with their government and called for peaceful dialogue. Beijing continues to support hong kong to the executive carrie lam but did some of the u. S. And vassar to express strong opposition to what it calls american interference in hong kong. I have not been held accountable by beijing for the District Council elections. German jay powell remains optimistic about the u. S. Economy, striking upbeat tone about record expansion and signaling Interest Rates will probably remain on hold. His comments included he sees the glass quote much more than half full quote and with the right policies the u. S. Can build on its gains and spread the benefits more widely. A new report from the peoples bank of china says 13 of the nations lenders can now be considered highrisk. Pboc says 586 banks and other Financial Firms are deemed under threat. At least one unnamed letter earned a d rating, meaning it went bankrupt, was taken over or lost its license this year. Chinas Banking Sector is becoming a growing concern that home and abroad. Finally, westpac shares as mentioned earlier opened higher in sydney, after Ceo Brian Hartzer says he will resign next week as the bank invest its a Money Laundering scandal. He had said he would percent lead in a best guess net westpac after the lender was accused of breaching financial laws 23 million times. He will be succeeded in the interim by the cfo, peter king. Global news 24 hours a day on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. Not to our top story. China says it is reach consensus with the u. S. On resolving what it calls relevant issues. The two sides have agreed to stay in contact on the remaining points of an initial trade deal. Top negotiator spoke to the treasury secretary and the trade representative of the u. S. And discussed some core concerns. He says he is cautiously up to mystic they will strike an accord. To discuss all this is Alicia Garcia herrero chief economist, natixis you and great to see they have reached an initial consensus. To say these talks are protracted would be an understatement. They are very protracted and i do not think they have really reached a consensus if we listen to what they have said carefully. They are like sexy percent away or 40 away. We are not yet 60 or 40 away. We are not there yet. The only thing we know is there is a major issue between the two. It could be hong kong. And that has been lifted. We hear ipr, so it seems china is going to crackdown more and we have heard that before. They did increase the fines of are going to impose, they announced it over the weekend and then we get this traction straight afterwards. If we join the dots, maybe it is. You know what i mean, it is very inaccurate. I would be expecting if you really want me to believe that this is a major breakthrough, i needle i need a law, i need tangible much more than what we have. For me it is actually, it was something in between that was about to call off the thing and it is no longer there. That is the way i read it. Because there is no date, no announcement. Buying the market move on the yen or aussie dollar all of this is a hyper to me for the time being. Lets see what else i can offer. You mention hong kong as well. This is basically facing so many other factors, the triple whammy of what we are seeing on the trade front but also what you have to medically as well i havent what you have domestically. We know hong kong is in a technical recession. In terms of how this plays into the trade dispute, you mentioned it could be one of the sticking points. What are you seeing in terms of the outlook for the hong kong economy . The outlook is scary rate for the Fourth Quarter because there have been many days in the Fourth Quarter were basically hong kong has not been functioning. We know that theres going to be a recession this year and the question is for how long stare. For how long next year. In the hong kong economy, retail sales, investment and of course, tourism. But the Financial Sector is in spirit we see a lot of new issues, we see ipos. The Financial Sector seems to be doing fine. Evidence that some outlooks are happening but when you look at the market data is not there yet. Sog kong has proven to be far a very resilient offshore center, i have to say. I guess this is civil because it is very much needed. Simply because it is very muchneeded. I guess that part of the economy will do relatively well. The other will head into a recession, no doubt about it. So holding up with resilient and heading into recession. What more can the government do with fiscal support, having missed the boat . They certainly have so far but you can miss one boat and take another one. Why not . The elections to be a great opportunity for the government is part the for the government to show support for the hong kong economy. There are enough fiscal reserves to do that. I would opt for a very progressive fiscal stimulus. Basically looking into the weaker part of the population, in terms of income per capita and focus on that. I think that would be very, very welcome at this point. And it will be a nice response to what we have seen during the weekend. A lot to get through. The recession hong kong. What about the possibility of recession in japan and would be selfinflicted . Technically it will be there. I think it is hard to escape a technical recession. And it is self inflicted because they actually, the government decided to raise the sales tax at the worst time in the mist of a trade war with very bad export data in particular. We do have that, the sales tax. But the sales tax hike was not as bad as the previous one. Yes. A lot of it was discounted on the market. Yes and way, frankly speaking it was hard for the government to delay it again. In that regard the market had already taken into account current however, the ironies and firstappened for the sales tasks hike, that the cut and it wasto handy because they had an quake and they came with the new stimulus package. Think about the irony, you raise taxes and then to a stimulus package. It is likely going to happen again. Because i think the deal jay is really waiting to the emily f to announce a new stainless package the mof transcend seamless package. Its the same thing and left to announce a new stimulus package. Even if you increase the sales tax. We have the imf calling on the japanese government to work more closely with the be oj. That cut their with the bank of japan. They cut their 2019 growth forecast. Imf laid talking in tokyo. Had speaking in tokyo here is what she said. We believe it is proper for the bank of japan to have targets that has proven to be helpful and while not yet is, ofd, the direction inflation has been upward. And most important lay, deflation is now a story of the past. There you go. I mean how do you interpret that . There is a lot of wiggle room for reform, isnt there . Yes, frankly speaking, whether the bank of japan changes inflation targets will not change japan. We are all struggling with inflation targets we cannot reach. It is not only japan. It is basically global. Doggedly sticking to them generally though arent they . Fares but they have been so from them, they could have done more to reach it which would having crazy, buying paper or lowering rates further. In other words, i think just changing that target would only make it slightly easier for boj. But with the boj needs is for the government to introduce dual reforms, labor market. All that was told to them so many times. Inflation target is a minor thing in my opinion. Thearrow we should tell imf, remind them of the third arrow and introduce labor reforms in japan, please. Lets switch from the bank of japan and turn our attention to brexit. I have a chart on my terminal showing the pound since the brexit vote has been buffeted by uncertainty. What is your read on all things brexit and where we go from here, in terms of the outlook is a risk to the economy . Frankly, we have talked so many times about this. This is basically my take at this stage. It is undeniable and it good thing that this is by now undeniable, even for the prince government, that the u. K. Even for the british government, that u. K. Will be really affected in terms of Economic Growth by brexit. It is likely it will happen. The damage is already there. This is even true for the european economy friendly part of that technical recession if i may say that we are not sure we will get there, it is the of the european economy because of brexit. The u. K. Is our Third Largest market for the european union. I think both the u. K. And europe are going to suffer from this. That uncertainty is only stopping investment especially in the u. K. Lets wait for january and see whether we have any other news. So far i think that is all we can say. It is actually negative, for the u. K. And european economy. And the election december 12, to get the result on friday the 13th. Thank you. Morgan is saying their bullish on asian equities next year and we discuss this view with the strategist mixo das surges after a Successful Listing in hong kong. We have a live report in the stock exchange. This is bloomberg. Oomberg. Bloomberg watching markets asia. Alibaba surging on its debut in hong kong having already risen strongly. The company raising 11 billion u. S. Dollars in the share sale. The stock was heavily oversubscribed. Sophie kamaruddin is that the Hong Kong Exchange. Tell us about the price action. A decent showing for the trade debut of alibaba here in hong kong. Not as much as the pop in 2014 when it listed in new york. 187, abovepen at the ipo price and a slight premium to the new york listed adrs. It jumped touching 189 with a turnover of a billion hong kong dollars outpacing tencent which is down on the day. Analysts are bullish on the with a hold on alibabas adrs appeared it could help the companys narrows gap to amazon. Comparing at when he four times earnings to bear to amazon 46 times. We talked about why amazon one why alibaba went to hong kong. Do you think other comedies will follow alibabas footsteps and list in hong kong other companies will follow . Listing during a counting time in hong kong a sign of confidence. A cheerful Hong Kong Exchange chief said he is confident other come pace will return home. Alibaba has paved the way as densely for other tech unicorns regarding paved the way for other tech unicorns regarding dual listings. An eligibility to join the hang seng index. Could open the doors to a wave of chinese money. Mainland funds have been preparing to that according to the alibaba cfo. First time mainland investors made up about a third of the buyers for this initial offering. Euphoriaile, we had with that debut. We do knock at the same when hong kong leader carrie lam called for peaceful dialogue with protesters in her first comments after prodemocracy forces won a landslide in local elections. Message she overall sent out . The overall message was there is nothing new coming from the government. No new concessions, 90 strategies. Basically, she is going to be following the presenting strategy that was happening before the election. No new concessions, no new strategies. Engaging with those in the city. Shes going to go back to that hoping for, now and seeing if she can kickstart that again and have another round of dialogue. In, there is doubt that china do for itselfg to after the election. After their prodemocracy supporters came out are we going to send new twoseat supporters demonstrations are we going to continue to see demonstrations in the city . Prodemocracy supporters were popping champagne, this is a window for either beijing or the Hong Kong Government to come out with some sort of concession. Maybe that admission or inquiry that protesters have been asking for. It looks like the window mightve already closed. There already calls for more rallies. There was some brie standoffs yesterday and now i think theyre probably going to see there was a brief standoff yesterday and i think we are going to see what more protest. Given that no one listened to this vote in government, really, we may see an escalation of protest going forward. But did she actually say that one stage that she was going to set up a committee tried and fight causes of this unrest. Surely that is a move in the right direction . She reiterated that this morning saying there was an independent review committee. But it is not clear how that is going to be composed, what they will say. The demand, they want an independent commission if you will to look at all facets of this. Isnt that what she is sort of edging toward their . There . It is hard to say. People are asking for a formal independent mission of inquiry, a formal hong kong thing. Lamb has set up different committees, one that invites to the Police Complaint counsel another advising on pieces of the unrest. It is not clear any of that will satisfy the protesters who wants to think very formally independent of the government, like a retired judge or some thing like that back and looking to both sides of the debate here, including the police. It is not look like we will see some like that here. Thank you. With the latest after landside for the prodemocrat protesters. And comments by hong kong leader carrie lam. You can send messages during our shows, check it out at tv. This is bloomberg. We are back with Bloomberg Markets and the latest business flash headlines. Google says it is fired for employees it violations of Data Security policies. The company has written to staff in email seen by bloomberg. The decision may escalate tensions between management and activist workers who have been protesting for months about issues including googles work chinahe military, censorship and Sexual Harassment claims. While his prospects in the u. K. Dimmed after the phone Market Leader says it is looking for a new equipment supplier. Bps open Reach Division is evaluating other vendors alongside nokia and huawei as it prepares to connect millions of homes to optic fiber. Huawei is accused of being a security risk, something it denies. The Chinese Division of imax is putting its money on the mainland, shifting away from its dependence on hollywood blockbusters. Chinese leg which films have been two of its biggest chinese language films have into. Ts biggest five films it wants half of the films it screens the future to be chinese as china prepares to overtake the u. S. As the Worlds Largest film market in 2020. The hour. R stock of Hitachi Chemical. Why . And has risen to an alltime high today. The most since listing in 1974 after the diversified chemicals maker says it is considering acquiring shares in a deal became reported could be worth a . 7 billion. 8. 7 billion. Giving the right of first refusal. We have seen the stock rise sharply today up by 60 . Lets have a look at how it hit up by 16 . The year to date up by one had a 41 . 141 . The stock rising to a record. To get a glimpse of this and other stocks of interest today, it is most go on your bloomberg. 1,400 more volume than usual on that one. A look of the Chinese Markets as we had to the lunch break. For shanghai, 90 minute break. Off the highs of the day, shanghai composite dust turning negative and again of hortense of 1 for the china index. 1 10 of 1 . This is bloomberg. In singapore. We are seeing stocks in singapore has self. The fti index up by a quarter of 1 . Bloomberg had an exclusive interview with the secondbiggest bank in singapore. Is ready forme he a chinese Digital Banking invasion. Nt necessarily new competition but the does expect regulators to ensure a level Playing Field. We will have more on that exclusive interview with the ceo coming up later in the program. Lets get the first word headlines. Are going to start with the imf. Calling on the japanese government to work closely with the bank of japan. This as it cut its 20 growth forecast for the necessary time 2019 growth forecast for the third time. Fiscal spending for growth and inflation. If is urging more ambitious structural reforms. Appropriatee it is for bank of japan to have a target. Proven to beat has helpful. And while not yet achieved, the direction is of inflation has been upwards. And most importantly. Deflation as now the story of the past. On travel toan taiwan has led to a short to klein in visitor arrivals in the past two months. The number of mainlanders traveling to the islanders plunged 52 yearoveryear in october. And that follows follows an earlier dip in september. Last months decline was the biggest since 2008 when taiwan relaxed rules on chinese tourists. Chinese nationalist are still allowed into the island. Biggest market in europe is at risk after regulators in london. The second time in three years this is happened on safety concerns. The london transportation regulator says that uber failed to verify driver identities. 14,000 trips involve drivers who are not who they said they were. Im really keen for london to new hot bed for businesses. You have to abide by the laws. What it is clear that these policies that mean possible safety is being compromised. Su global news 24 hours a day on air, at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. A busy day at the Hong Kong Stock Exchange we are just getting word that the china bottle Water Company is planning a 1 billion Hong Kong Ipo the first half of next year. Whichng for this ipo could raise more than 1 billion according to people familiar. And the company is working with Financial Advisors for the first timeshare sale. They have asked not to be identified. A representative hasnt immediately responded to these requests for comment. Hearing there could be another ipo hitting the Hong Kong Exchange. Ed Water Company is early as the first half of next year. Rishaad lets have a look at markets. In terms of a more mixed hang seng. Nikkei 1 3 of 1 . Asx doing well. Thanks doing a bit of support after languishing. Bitpac fair, come to that a later on. There is a fresh wave of m a activity. Record highs there. Gave us some decent tailwinds. Some optimism about u. S. China trade talks with consensus forming and perhaps we could get a phase one trade deal at some stage soon. Indian markets. We had a record for the in the session. Nifty is looking positive. 20 points off a record high. The rupee just a little bit stronger against the dollar. We got a bond auction today, not on thes, but 6. 47 there paper. As we round out 2019, analysts forecast for 2020 is coming and big and fast and the view on asian equities is bullish. Jp morgan expects that msci to rise to a level of 700 by the end of the next year while Goldman Sachs has forecast that 11 rise in earnings for the asiapacific index exjapan with south korea, india and taiwan leading the way. Rishaad lets bring in jpmorgan equity strategist. Trade optimism today. We have been here before, havent we . It is like may and then suddenly all went wrong. It will go right this time in the reason simply is time. Our view has been from trumps perspective, the timing becomes right by the end of q4. The that if it start to come through in a before the election. Timing is just right. May, we were skeptical the timing was not there. And that was the possibility that it would reescalate the issue. But what ended up happening . Rishaad the thing is, though, that is only a phase one. A quite protracted and troublesome to get here. The low hanging fruit. The next wall of worry will be faces two and three. And three. Wo this negotiation is going to continue until most of next year and from trumps perspective that is good because of the keep set a study feet of optimism, actually good from his perspective. As long as this does not reescalate, that is a good enough outcome. Nobody is under a lot of pressure to get this done very quickly. I just want to go back to your calls on where we see msci asiapacific exjapan by this time next year. You are saying that reading of 700 mainly driven by rebound in tech. You are seeing strength in the markets of south korea and china. Thats about right. If you look at our index targets, youre looking at msci asia and japan about the end of this year of 650. That is pretty much exactly where we are today. Most of the gains from this year will come in very early in for the rest of the year will be range trading and will be sensitive to risk events. That is what we have done for the most of this year. Into next year, we still looking to trade opportunistically on the up side. I do think you will get one or maybe two upside opportunities 15 h will be 10 to rallies. The year and in next target is based on our earnings estimates which we expect to grow by 10 next year. You are right to point out that a lot of this growth is coming from countries like korea and taiwan and india. Suliette how much doe potential dollar weakness figure into these forecasts . I would say that dollar, we are expecting a flat dollar. Our assumptions include a very marginal with asian currencies but if the dollar starts to really depreciate, that could be an upside risk for us. Among the upside risk the dollar depreciation or dollar weakness, given the time that we are already in a very elevated position in the dollar, that could materialize and that is an upside risk for us. The other risk is that all through this year we have seen 800 billion plus of inflows into bonds. Outflowsillion plus of from equities. This is historically extreme. The moment in many parts of the world. Look at record highs in the u. S. What are they looking at . Interest rates not so much a factor these days but you still have to wait for the lag effects to start working there. Tell us what we are essentially seeing as were coming out of the cycle reset we have had since the gse. The first one was coming out of the 2011 correction. We came out in 2012. Then there was a correction in 2015. Last year there was a big correction in the Economic Cycle and this year were coming out. This is the third cycle we are exiting and typically this leads to an earnings recover. Ely there. Gelk if you look at asia, valuations versus fail value, it is about 4 higher. I am not bullish right now from a timing perspective. We we get Trading Opportunities higher into next year. It will not be like 2019 all we will get all of it in the beginning. 2019 coming into the year, evaluations were extremely attractive. Right now both are above average. Even though momentum is strongly earnings we think the markets could gradually drift higher. Within that we are much more aggressive in a valley rotation and that is the key call we have for no. Rishaad i measured the u. S. Having records. The india is heading there as well. Well find a 20 point move up. And we get another one for the nifty here. Weve had all these difficult years behind us. And talking Morgan Stanleys chief economist. Of encapsulated what the Indian Economy has going to since 2013. Give us your reaction to what he said. In 2013, taper tantrum shock and to miss a demand went down. As economy was recovering you had the china and the ems go down and then you had demonetization. Nsb economy was stabilizing, then you had elections. Have build a sixyear long deep cyclical slowdown. Indias problem i think is really now just not having any of their oneoff measures being taken by the government. Recovery comes through, we think India Economy will be on the mend finally. I agree with this. That india has been through a cyclical downturn for many years now. At the wrong times. You can argue that some of these are domestic and some of them are other factors. But if you look at our five key themes that we have for next year, a turnaround in india is probably the most controversial. At say that india is trading record highs but it has underperformed three of the last four years versus global benchmarks. If you look at valuations of india relative to the rest of the world in asia and japan, it is closer to the bottom end. Its not like investors are heavily positioned in india. If you look at positioning data in india it is close to 10year record lows. We are now starting to see a cyclical bottoming out of india. If you break down the story into investment and consumption, focus on the investment. There has been a problem on the demand on the supply side. Supply side, the channel has been clogged. You start to clean that up, and that is what we have been seeing over the last month the news we have gotten over the past one week the supply side is being cleanup. The Corporate Tax cuts are good. We will get more because this government can deliver. Thoughts on hong kong. Ive a chart showing that we have seen the hang seng underperformed a lot of is peers. It used to be you would wake up and see what wall street dated you could pretty much trade hong kong that way. That is certainly not the case with these ongoing protests. What do you see in hong kong . A bottoming out or do you get into this market . When you look at the hang seng index it is obviously hong kong there is a vast majority of Chinese Companies that are listed in hong kong. And if you look at the hang seng performance relative to the rest of the region, it has been underwhelming this year. An overweight position in china. We do see the offshore chinese equities doing well. As a result i would say the hang seng as such, we would be optimistic looking into next year. Why you likel me indonesia and vietnam at the moment. Indonesia is a high beta story. If you look when Global Growth was below trend in improving, indonesia is one of the best markets to own at that point. Vietnam is a beneficiary of what we have seen right now in terms of the u. S. China relations and this pillow of supply chains moving into asean. Vietnam as a country that has the best infrastructure to absorb most of this and this is what we have been seeing. Gdp growth there has been picking up. We measure reforms on a country level quantitatively. This was sure, that vietnam is the one country that over the last 10 years has deliver the most on reforms. Even in 2019, the year on year improvement in reform delivery in asia was the best. Rishaad thank you so much. Jpmorgan asia equities strategist. Saysg up, singapores ocbc it is ready for a Digital Banking invasion from china. Well hear exclusively from tien. Ceo samuel this is bloomberg. Lets get you to mumbai. We are i believe just at a record high on the nifty. Absolutely, right. Finally nifty has hit fresh record high levels. Seenssing 12,000 which was on june 3. And the opening today was somewhere around 12,111. Currently we are training with gains of half a percent for nifty. On the back of sustained buying throughout yesterday. The sun takes is also trading at a record high level with gains of 200 points. The banking index has seen gains. There is some buying that has come into broader markets. Idualn terms of indiv stocks. Has stepped down as the chairman of the company after selling 16 stake last week. Y, shareholders this is bound to happen. There will be a reconstitution on the board. Nestle is the other one in Goldman Sachs has down traded from stock to sell. They of said they expect to underperform due to slowing growth in their products. Not to forget is an expensive stock. 4 has given up his gains and is down to percent. Down 3 . S Aspect Company to modify you are seeing that negative reaction. Nifty touched fresh record high levels in todays session. Juliette thank you so much. In mumbai. Well, Singapore Bank osbc says it is wellplaced to take on Chinese Technology giants looking to join the Digital Banking market. Ceo samuel tsien spoke exclusively with me about the ongoing trade war and ocbcs tech investment plans. Floorgapore reached a business globally as well as regionally. Will probably will reduce but i think singapore will become even more outgoing in terms of engaging partners in asian to bring the flows through singapore into other places. Juliette in terms of the Digital Banking space and the mas framework there, do you think it is a fair platform, a fair Playing Field in terms of the traditional players like yourself and of course the new disruptives. A new digital bank will allow you to try out new things. We would like to review it. We are talking to different parties. We have not yet made a final position as to whether we will go are not go. Its attractive to us because it is a way that we can actually test out in this new Digital Economy as to what we could do. What we could do means that product offerings, how do we engage customers, what are the new channels we can use that we do not have to report with the conventional cost space we need to build up before we touch customers. We are interested. Juliette how much are you looking at investment in tech . Sayingf analysts are the big banks could be less behind if they do not move ahead of the curve before some of these new players come into the market in 2021. For digital banks, the investment is not so much on technology alone but it is the way that we engage customers with technology. Bank, the look at the bank has got a fairly significant investment, the core Banking System, and it connects all of the channels on the products and connects directly with customers. If you have additional bank, the digital bank can have a certain segment of customers that appeals to, we appeal to them and they appeal to us but the core Banking System that we need to set up need not be that complex. We kept investments we made into the technology side. It is more on connecting to the customer rather than core system which is the most expensive one. It is another model that we can adopt in a lower cost way. That we can engage the customers and try out new things. Ceoette what is the ocbcs succession planning look like . We have strong candidates who have moved around in different countries, who are able to take over the bank in the event of a need. And, along the way, is we can continue to expand our business we look at other regions, other candidates that could be, not be part of ocbc yet but could be part of it in the future. Juliette that was my exclusive interview with ocbc ceo samuel tsien in singapore. Coming up westpac begins a global search for a new ceo. We are live in sydney for the latest on the banks deepening scandal. This is bloomberg. A quick check of the latest business flash headlines read alibaba surges on debut in hong kong. Than 11ny raised more billion in the share sale with the stock heavily oversubscribed. If it fulfills jack mas of trading close to home, and will place makers in beijing it is the biggest listing in the city since 2010. Indians air safety regulator is indigoleading carrier ground its fleet of airbus a320 planes. Indigos readiness for changes do not instill confidence. The order will be in force into units have been replaced. Harveyian retailer norman is set to face shareholders this week amid a weak domestic economy questions about its corporate governance. The company is a favorite of shortsellers making up 20 of equity flows. That makes it the most shorted stock on the asx 200. Although the shares have enjoyed a 40 rise so far this year. A change in westpac as the moneylaundering scandal deepens. Resigns amid allegations the bank committed the biggest violations in law in a string history. We have the latest of elements. It is not a big surprise. He is gone. Is it really, emily . Emily no. It is becoming inevitable. The chairman of the board has been in meetings with other stakeholders the past few days. The message was clear up in a shareholders father needed to be accountability at the highest level for the scale of this breach. Is going toily, who be next in terms of a replacement . We understand that westpac is looking both internally and externally. Emily yes, so, this is the third time one of the big australian banks has had to go to the market for replacement in scandal ridden conditions and only 2. 5 years. As you can imaginet the headhunters have their list that they are dusting off. With speculation already swirling around the head of their retail bank which has been the proving ground for homegrown australian. They will also be looking extra. Very typically in australia, that means they are looking further afield to expat australians that might want to come back and are prepared to take on a huge restoring reputation. Rishaad emily, this is likely to get Law Enforcement involved. What was at 23 million incidences of Money Laundering. Is there finger pointing anywhere specifically . Emilyl well, a good question. And the answer is not quite yet. So, essentially we have got three probes we know about into westpac. We have this one from a Financial Crimes Agency and that is the civil suit. We also have this security regulator concerning late yesterday. They are launching an investigation as to whether there are breaches of company law. We also have the prudential regulator looking into seeing whether there is a breach of executive accountability rules. It is fair to say regulators will be all over every aspect of this bank. The key questions will be, as always and this, who knew what and when . Juliette exactly. Great reporting. Still ahead, we speak exclusively to the irish finance p. M. Hong kong0 time at 1 30 p. M. In london. Rish . Rishaad a quick look at markets. This is what we have at the moment. Nikkei 225 up by 1 3 of 1 . Mark is off the highs of the day in hong kong. A bit of negativity creeping and as we head towards the lunch break. Asx in sydney getting a relief. The indian markets, the nifty at record highs. 12, 128. That is it for Bloomberg Markets asia. Taylor i am taylor riggs in San Francisco in for emily chang and this is bloomberg technology. London Transit Authority refuses to renew ubers operating license over concerns about passenger safety. The company vows to appeal. Ebay is selling stubhub to european rival via gogo. We will have details. Going global