Transcripts For BLOOMBERG Bloomberg Markets Asia 20240712

In terms of the euro, that is firmly in focus. European leaders meeting in brussels at loggerheads over how to rollout the plan. The offshore currency is essentially flat. The fix is essentially 6. 99. That is what the aussie yen is doing. The u. S. Dollar has ticked up 2 10 of 1 after a number of weeks of weakness. We can move it onto look at some of the commodities in the 10 year. A bit of concern about demand destruction for crude given the infection rate in the u. S. Florida, some policymakers saying the virus is out of control in that state. That will be a concern. 40 for wti. You still have this significant divergence between the 10 year, u. S. And china. Rishaad just getting some news from a motor company. It is secured funding from a variety of private equity companies. What it does show is chinese startups promising vehicles. Attracting funding even as we are seeing the industry having a rough time of it. This is leading to x peng saying the Company Managed to achieve the 400 million round in september. Tom lets focus in on the markets. Our next guest remains constructive on the markets on the back of fiscal support. A globals is investment assets. What extent does the tugofwar between Monetary Policy and fiscal stimulus play out particularly in this part of the world where we are seeing flareups in hong kong, melbourne and tokyo . Will we have to do is [indiscernible] it is a tugofwar, which is coming from the global fiscal monitoring stimulus. If you look at the severity of the lockdowns from what happened in april, even in economies like india, the lockdowns are a lot less severe than what they were. Is we slowly move toward economic recovery. If you look at the news reports, [indiscernible] we should have some positive news the next three to six months. Tom on the stimulus front, it is a big week. We have european leaders meeting in brussels. Currently at an impasse over that stimulus plan. The conversations are starting over a bill that looks anywhere from one trillion to 3 trillion. To what extent should asian investors be focused on a stimulus out of europe and the u. S. And what and and to what extent you expect flows to move over to this part of the world . The stimulus plan is important to keep the markets and economy stable. If we we rind 10 years back, if we we rind 10 years back never really came. The good thing is the government is just starting to act. If you look at the contours of the u. S. And european plan, the debate is how much of the 750 billion is going to be grants and how much is going to be loans. Everyone agrees it has to come out of the stimulus. If you look at the u. S. Plan, it is a trillion or more. Everyone agrees the economy needs a stimulus. Each of the parties involved would like to protect their own interest. We remain confident in coming weeks we should see some clarity on the stimulus. If you look at the money market [indiscernible] we have seen a lot of money move out of ems. A lot of this money was invested in u. S. Or other asset classes. As people get the comfort that velocity is picking up, the money comes back. Years, doescoming it come back in the second half as well . Where do you stand . As people get more confident that some of the taxes may be raised, we have seen the u. S. Rally. A fresh perspective look at ems. If you are willing to look beyond the next two or three quarters of tough earnings, these are good businesses. Ems, you make buy a disproportionate return. That is what is going to play out. Ems are not liquid. If you see some sort of support coming through, these markets should be stable. As data improves, we should see further gains. Im going to tell you what this chart tells us. The hang seng seems to follow what fundamentals there are with relationship to the covid19 outbreak in the city. When we see a spike up, and that is indicated by the blue line, you see the hang seng come down. That the reverse is also true. The latest spike is being associated with weakness on this particular benchmark. This is not something happening elsewhere, is it . I think that is more to do with the consequence of the benchmark. If you have a benchmark, which is dominated by local property players who get impacted because the rates are falling down. The benchmark is going to be impacted. I would rather not look at benchmark and look at individual stocks. If you look at hong kong, some of the large names remain attractive. We have insurance, financials, which remain attractive. Mentioned the multiplier was improvement was improving. The velocity of money is slowing down in the u. S. A lot of the cash corporates have borrowed has ended up on deposit more than anything else and not being invested and perhaps keeping these companies afloat and perhaps keeping afloat some zombie firms as well. Thehat happens is as economy is open and that is where we have seen some of the data improve particularly from the u. S. Like where we have seen new york open up after huge lockdowns, things have improved. The money you multiplier picks the money multiplier picks up. Low basesking at very in midmarch. It is showing improvement. If we look at the resolve of the policymaker, we have not seen the policymaker as much committed to stimulus. It is more like a do whatever it takes moment to get the economy back on their feet. If you see the noise coming on the vaccine, particularly from the oxford research, hopefully the next three to six months, we should have some clarity on that. The covid beneficiaries are up close to 75 . Covid, some of the financials or the Energy Markets that have not handled covid well, these markets are really cheap. That is not take alloy the longterm potential. They are going to benefit from the shift away from china. There is value in the markets. You have to look away. Also just very quickly as well, it is a rebound as markets to open up, not a recovery. That money is being used to foster and keep things steady. When can we say there is a recovery taking place . Recovery is going to be more offered in the 2021 story as people get confident with the virus and they get comfortable with living with a virus. That is where you will see recovery. Lets take it on a personal level. Each one of us is angling for the holiday. No one would take a holiday until you get clarity. Once that is behind us, there is a huge pentup demand. That is where you will see the recovery come through for people who still have jobs. The last five to six months. You have saved a lot. Give it a couple of quarters. You will see the savings translate into spending as people get the confidence back. Always a pleasure. Thank you very much indeed. Going to have a look at the first word news headlines. Taking a look at these tensions between london and beijing with britain saying it may join International Allies in suspending extradition treaties with hong kong. China and after canada and australia halted their agreements. Dominic rob will brief Parliament Monday on the u. K. Esponse to beijings treatment water levels in the Yangtze River reach new highs. The dam was built to ease flooding concerns. It is under increasing pressure has rain continues to fall. Many people are being forced to leave their homes. At least 140 people are 92 have died. Metersod limit is 15 above safe limits. More rain is forecast. Beijing is taking further steps to integrate its bond markets, which could reduce complexity and attract foreign investment. Traders on the stock exchanges can trade bonds listed in both venues. Toulators will allow both conduct issuance. Chinas bond market is the worlds secondlargest. Still ahead, hong kong is facing challenges on several fronts from the new security lull to the resurgence of the coronavirus. Were going to be speaking with calvin we are going to be speaking with calvin lampshade calvin lam. Tightening containment measures except in beijing. Will bring you the latest on covid19. This is bloomberg. Tom welcome back. This is Bloomberg Markets asia. , the Global Demand for electric cars, particularly those from tesla, are boosting a south korean battery maker. To as surged more than 60 valuation of about 30 billion and is now the sixth largest stock on the kospi index. Carmakerss several but has been lifted by deal with tesla. Apple is expected to have a new iphone producer in china, potentially setting up a clash with the increasingly antimainland administration in washington. Luck share precision as buying. It is already the biggest maker of apples air pods and is one of the stock performers in asia. Japan is looking to boost its chip industry with an international tied up. Tokyo is considering allowing taiwans semiconductor to partner with one of its own makers. Under the plan, the government could offer funding support in the billions of dollars as it looks to protect stateoftheart technology in the interest of National Security. Investment in Global Real Estate fell by a third in the first half as the coronavirus pandemic battered economies and disrupted plans. Sample says the asia civic took the biggest hit with volumes done a 45 from a year earlier. Investment fell 36 in the americas and 19 in europe, the europeeast and your and the middle east. Rishaad lets have a look at what is going on. Stocks starting the week muted and down a moment. Shanghai composite up by 1 . A for tens of 1 move for the overall market in this part of the world. Futures also under a bit of pressure. We have several states facing a dire situation with regards to covid19. 10 year yields at 0. 62 . The question has got to be, what to the banks do what to the banks do . They did some lending, but it does appear they used the access to by treasures. That put a cap on 10 year yields and added to what is going on in the stock market. We have investors trying to get returns from somewhere. The nikkei, one third of 1 lower. The hang seng still down. Shanghai composite up by about what up by about 1. 1 . The nikkei shrugging off the weaker export number. Weaker than expected export number. Imports were slightly better but still negative in japan. Lots more to, including a look at a virus any more detail and where we are with it. This is bloomberg. Rishaad global coronavirus cases are now about 14 million with deaths over 600,000. Infections are rising in victoria with masks now mandatory in melbourne and people facing steep fines if they are caught without one. Infections continue to rise in the u. S. Lets get to markets coanchor yvonne man. Kongthird wave in hong coming back with a vengeance. What other steps is the government taking to tackle it now . Yvonne the government is ramping up the virus after the record 108 new cases on sunday. The total tally we have in the city of 1777 has surpassed the tally we saw during the sars epidemic in the city. That is why we are seeing more social distancing measures extended and expanded. Restaurant and bar restrictions remain in place for another week. Masks must be worn in indoor areas. Now beyond just public transport. Civil servants have begun starting their work from home today. Chief executive carrie lam saying the situation is very serious. There is no sign it is under control. The big issue is still the local cases. Out of 108, more than 40 of cases are of unknown origin. Perhaps a sign we have not seen the worst of it. A different story for beijing. The city is relaxing its restrictions after it so no new cases the last few weeks. Tom in terms of the economic damage of the virus, adding some lines crossing the terminal. The thai economy may take two years to determine to return to precovid levels. What is happening in japan . Tokyo, we have seen a surge in cases. What is the sentiment in that city . Yvonne it has not been good. There was a poll that came out over the weekend where around 60 are unhappy with the governments response to the pandemic compared to a month ago. This is as we have seen tokyo daily infections have reached records. For two Straight Days 188 as of yesterday according to nhk. The Prime Ministers Approval Rating has also suffered. That felt a 32 . The government is set to kick off a campaign to boost the domestic terrorism industry. Two thirds thought it should be suspended, not just for tokyo but parts of japan. 20 say exclude tokyo and kick it off, that is still reasonable. Thatare still preferring preventing infections should take priority over economic activities. Most are calling for localized state of american emergencies to come back state of emergencies to come back. There is still a lot of concern out there for the tokyo olympics. And other poll suggested only a fifth of the public thought that the next summer games should go on as planned. Rishaad we had President Trump coming out to make some statements, which raised a few eyebrows as he tries to play down the number of cases of this virus. Just have a listen to this. Many of those cases are young people that would heal in day. They have the sniffles. Many of them. I guess it is like 99 point 7 . People are going to get better. In many cases, they are going to get better quickly. Rishaad the question is, how are various states dealing with it and is there any veracity in what he is saying . Yvonne we have seen cases rise 2. 2 . That is above the daily average over the last week. The deaths in the u. S. Have reached 140,000. Youre seeing the pace of deaths slow in states like arizona. Wasida, the buyer situation under control. Angeles has los warned the city is on the brink of another stayathome order. It is mixed at this point. People are still talking about whether or not to wear masks. The nih is saying it is bizarre that wear masks has become a partisan issue. After the interview with President Trump, he said the reason why we are seeing this rise in cases is because they have done more testing in the country. When it comes to the u. S. Response, he says it is the envy of the world. As for his relationship with dr. Anthony fauci, he says dr. Fauci was an alarmist. The two men had a great relationship, but as we have seen, members of the Trump Administration have criticized for algae. This is reflected in have criticized dr. Fauci. This is freep elected in the polls this is reflected in the polls. Joe biden has a growing lead in the polls. Tom yvonne man in hong kong. Lets check in on the markets. You have the csi 300 up 1 . Shanghai composite up close to 1. 4 . We have the loan prime rate for the month of july, 3. 85. A signal that the pboc is comfortable with the economic recovery in china. The msci asiapacific is down 3 10 of 1 . It is a mixed picture. Many other countries are posting losses. India is in focus. More than a million confirmed infections. Concerns about how the government will respond to the economic damage. The dollar has gained 2 10 of 1 after a number of weeks of weakness. 6. 99. Fshore u. N. Is at going back to the bond story, a reform here in terms of the bond markets so traders cannot trade between the interbank bopping the interbank markets and the stock market. At 2. 97. Ars is rishaad coming up, we are going to see speaking with a former hsbc economist. We are going to be talking about the risks to hong kongs financial industry. This is bloomberg. Here are your first word headlines. The coronavirus continues to set unwelcome records with u. S. Cases rising over the past week. Passing 140,000. Los angeles is being warned it is on the verge of a new lockdown. The pace of fatalities has slowed in arizona, florida, and new york city. Global cases are above 14 million. Coronavirus cases are surging in asia. Infections continue to rise in india. Approachinghs 27,000. Virus cases are rising again in melbourne. Two men and women in their 90s succumbs to the virus. Offering 3fficials Million Masks to be delivered in the coming days. The eu remains split on a virus rescue package with the netherlands and others under pressure to get in line. Nations are arguing over the methods of dispersing the as. The aid. The netherlands and its fiscally conservative allies are being accused of holding the block ransom over the precise wording of the plan. A Hong Kong Securities watchdog says it is unaware of any impact that the China National security law has on the market. The commission added that analysts should face no new impediment to their work. In terms of the sources of information and data they use and the manner in which their views and opinions are expressed in their reports. Plans to run for a seat in the legislature. To stand up for the Financial Services industry. He is currently a member of the Southern District council. Welcome to the program. Good to be here. Rishaad a lot easier said than that, isnt it . It is indeed. I think the National Security law does has an impact on market flow. There are problems for journalists getting visas. If it is flowing freely, we will lapse the financial markets. It is at risk. Rishaad absolutely. That gives you the idea of challenges ahead. Deutsche banks chief executive will go to singapore rather than hong kong. How would you deal with it . I think Deutsche Bank is in make ittion to responsible. They make a statement on what they really believe in. They are being forced to do that. They should be free from political pressure. I will be speaking on behalf of the institutions that have been affected. ,f you look at Cathay Pacific are of them are generating within the Asian Pacific region. These political statements are rather unnecessary. A level ofere is real politics at play. The will have to fight bullet and support beijing. What will be able to change that position . I think youre right. What is stopping that from happening . We will be on the verge of collapsing. Their only aim is to maximize profits. And shareholder values. The chinese know that. They shouldnt be under these kinds of pressure. I hope these things do not happen anymore. Touched on this, but should some of these organizations be looking to diversify out of hong kong . I think they should. I think it provides a good they can leverage on this kind of market power. Into makingmpanies decisions. I think it is the right time for them to do that. They should do that. Putting all your eggs in a company, it fits their business profile. Hedge againstlly any volatility in china or any other places. Tom lets talk about the mechanics of this election. 10e you secured the nomination votes that you need . Team is fighting really hard to get nominations. Unfortunately, the financial industry and hong kong is very aligned with china. We will try our best to get nominations. So we can speak on behalf of institutions. Rishaad what about the economy itself . In lightings pan out of the viruses third wave and the economic slowdown we have been seeing ever since people took to the streets last year . I think the hong kong economy is facing a double whammy of the moment. The first is domestic volatility. And also the coronavirus. There is also the political stalemate domestically. Any recovery, if it comes will be protracted and long. Rishaad if you are in the legislature, what would you be arguing for for the government to be doing . Besides the domestic they should increase the efficiency. It takes longer than expected. Expand the packages to a wider array of businesses in hong kong. They should also listen to the people of hong kong. Try to protect the rights a little bit better. What is really good for the hong kong economy. That might not be the best for hong kong. Tom thank you very much. Coming up, why japan is willing to pay its companies to move out of china. We will bring you that story next. This is bloomberg. Tom japan will Start Paying Companies to move factories out of china. The government looks to secure supply chain and reduce manufacturing on the mainland. What is china trying to achieve with this policy . Government since march has been trying to reduce its reliance on supply chains. They were using other mass production for pharmaceutical production. Japanese consumers had a lot of problems getting masks. Which is a problem theyve had. The government said they need to reduce their reliance on china. If we can, bring it back to japan. They were not overly reliant on one company. Country. They budgeted this year to Pay Companies to increase production to japan. So reliant onbe factories in china. Rishaad how much are we talking about . The government has budgeted 2. 2 billion so far. For the first round of subsidies they looked up last week. There will be 560 million. Putting investments into vietnam, the philippines, thailand. Rishaad lets get that coin in. The price is stuck in a narrow range. There will be a matter of time before we see levels move much higher. We talked about when that might happen. I honestly dont know what will take bitcoin there. There are a number of factors that could happen. A lot of micro things are happening. They are related to the economy. I went to get your views on this twitter hack. The direction where people were told to put that coin into an account. There is more criminality when it comes to transactions with bitcoin. Bitcoin is more transparent. ,f somebody robbed the bank they have cash. I think when the crime is done, people will be able to track it with a high degree of certainty. This is not a case where bitcoin did something wrong. It is valuable. Same when people rabobank. The bank isnt wrong. It is just bad players that need more cash. Idea that crypto enthusiasts go to is the idea that cryptocurrencies can act as safe havens, especially at a time when you went to hedge against macroeconomic environments. During this pandemic, we have seen them behave as other assets. We saw bitcoin moving in lockstep with the s p 500. Ast has this crisis shown about the cryptocurrency hedge . I think people should not take that meaning. If you imagine bitcoin is the a titanichere is the flow will it, not sink down with the titanic. They are not able to sustain that kind of load. When we look at traditional markets, the whole market crashed. The stock market is probably a thousand times bigger than the crypto market. Many of those people who have investments turned it into cash. The Safe Haven Properties of bitcoin will be there. Coming up on the show, the pandemic is changing aviation. ,ith airline slashing costs travelers may be the ultimate losers. We will look at the prospects, next. This is bloomberg. Coronavirus has ravaged travel demand and changed aviation. Bee think it will ultimately a worse experience for travelers. This all stems from a family holiday you took to the northern territories. About how this family holiday turned into a family horror. It is good being able to bitch about your personal experiences it in print. To have a pleasant holiday in the north of australia. Striking that was very was that it was a last minute booking. The tickets we were buying were certainly not a bargain. They went up quickly in the space of a few hours. I think that is an experience that a lot of people will be having. Will beon is airlines bleeding cash for years. Somehow they will have to make it back. For travel is unlikely to return to 2019 levels until 2023. If you think it is an Industry Based on continual growth, there was an expectation to be 1 5 bigger. You are seeing a real crisis for the industry. For which there is no answer. That. Will be 16 times it is unheard of for financial companies. For a whole industry to be in this condition is completely unheard of. Sorry to hear about your route holiday. Losers the winners and on the back of all of this . There is a clear group who is likely to be the winners. That is budget carriers. It is pretty straightforward why. They have very low costs. They have flexible, nonusing workforces. Nionized have a shorter network. They are not running long haul flights. Long travel is likely to be challenged. Planes, we sawr British Airways retiring their 747s. We have seen qantas to that. Those areas are really going to struggle. If you look at countries that worst,en spared the domestic budget operations should be in better conditions. Maybe some of the budget carriers in europe. Maybe even southwest in the u. S. It will be very difficult for the long haul carriers like emirates and Singapore Air and cathay. Rishaad how is the Passenger Experience likely to change . He had to wear his mask the whole time and also advisor a visor. They briefly talked about having that. I dont think that will happen. We were all wearing masks. To see only half of passengers were wearing masks. I think that will become universal. If you dont wear a mask, you will have to think twice about flying. Up costshey will push wherever they can afford to push up costs. There is a lot of competition, but once you have booked it, you were essentially at the airlines mercy for what you will pay and baggage fees, legroom fees, food and drink, frequent flyer points. Some airlines are at about one third of revenue. That is how they will get their money back. Thank you very much. Its check in on the markets before we leave you. The focus is very much on the story around stimulus. Agreement on that stimulus package. Aboutnversation starting the next stimulus package. Will they be able to do it before the elections in november . China mainland is doing pretty well. There are concerns about the flareups of the virus in tokyo, hong kong, and australia. A lot more to come in the next few hours. Hong kong is giving up some of the earlier losses. Stay with us. This is bloomberg. It is almost 11 00 a. M. Here in singapore. Welcome to Bloomberg Markets asia. At our this is a look top stories. In the posty gains virus recovery. Eu leaders argue over a stimulus plan. This is a stock to watch. Its relationship with tesla has made it the worlds top battery supplier. Some investors have doubts. Rishaad the u. K. Is set to further inflame tensions with china by suspending an extradition treaty with hong kong. The foreign secretary is to address the house of commons later. We are seeing a little bit of a pullback in asia to start the trading week. We have seen lower in u. S. Futures. Eu leaders trying to reach an agreement on the recovery package. Hong kong holding ok despite concern about a tick up in coronavirus cases. There has been a lot of whiplash in this market. It is outperforming today. Up by over 2 . A little bit of of a pullback in korea. Lets switch the boards. I little bit of weakness in the offshore currency. We continue to see bad news on the coronavirus front. They are predicting 2000 in an ounce. Lets have a look at some of the stories that are making first word headlines. Reducerkets could complexity as well as attract foreign investment. Chinas 13. 7 bond market is the worlds biggest. Japanese exports fell by more than 20 for a Third Straight week. The value of overseas shipments plunging. That is slightly worse than forecast. The hope for an economic recovery it may be delayed. Talks on a new coronavirus stimulus package. The administration is said to be bulking at this. Money tos allocating prevention. The coronavirus drags on the countrys recovery. That would be for the 12 months since last june. The surgeon virus cases has undermined the economy. Global stocks are off to a make start this week ahead of a ramp up and Earnings Seasons reports. Investors considering more policy support. As the pandemic continues to impact economies. We have quite a few concerning headlines. There will be no travel for singaporeans. Potentially another lockdown in los angeles. , are theof these fears bulls running out of steam . I think not yet. This coronavirus news is concerning. We need to make it clear that until there is a vaccine, there will be challenges. We are seeing a stimulus response. We are very likely to see this data. There is bad news around the progression of the virus. We have the pboc leaving their powder dry today. We have seen stockmarkets tumbling below 9 trillion. There are some of the similarities from the very early days. We have seen a tightening on margins. Some regulatory tightening. These do appear to be implemented. That is something we have seen in the last couple of weeks. What kind of rotation are you looking at given we are moving toward an economy reopening but we are probably not far along in that Recovery Process as we thought we would be when you look at the likes of travel . On a still like it longterm basis. This does not make it a great entry port. But over the longterm, we do expect a policy response in a Public Health response. This will allow people to go out and spend more. Similar to what we have seen in past stimulus. Rishaad we have a question of the day from the market live team. By the end of the week, which of the earnings will amass the most . You said earnings that will matter the most . Rishaad yes. I think it will largely stem around the sectors that have rally but a bit. We are expecting summer earnings to be down. But with very wide dispersion. I think the sectors that have rally quite a bit, the tech , we have seen those earnings come through. Rishaad absolutely. The bad news is ignored in large parts and many of these markets. That is the most frequent question we get. Are the markets ignoring the economic realities . That is not necessarily we have seen a wide dispersion in terms of that. Financials are still down your today. We are looking for signs around economic revitalization. That is how we are thinking about portfolios now. What about safe havens . Are you looking at gold or you seeing this rally we are seeing in copper . We favorite goal. Both from a diversification perspective and a technical perspective. We are seeing Central Banks by a lot more. We have seen yields drop. It reduces that negative withholding goal for a portfolio. Real upsides continue to fall. Lately we have seen chinese report this. Real positive cycle. It is been somewhat surprising. Sales have increased dramatically. Always great to chat with you. Thank you very much. Still ahead, stocks in focus. That is battery maker getting juiced on tesla. What could go wrong . We will be talking with the founder of the center for disease dynamics. About his dramatic prediction for indias virus caseload. Dont miss that. This is bloomberg. Rishaad European Union Union Leaders have again failed to pass a massive virus recovery package. Our Global Economics editor has the latest. Agreementere been no after three days of them really talking this out . It was supposed to be a two day meeting. Everybody knew it would not be easy going into it. Is their first in person meeting in brussels. What it boils down to is france versus loans. How should we finance . Theshould we give money to countries hardest hit by the virus. There was an ending with no consensus. It is not too hard to figure out. 27 nations led by germany and france saying that the poorest nations, or at least the ones most hit by the virus, should receive money. 400 billion should be and grants. Opposed by the hardliners led by the dutch Prime Minister. Electionsis facing this year which makes it a little trickier. He is supported by austria and finland and denmark. They want fewer loans. They are also concerned about spending. They want to rein that in. This is where they have left it. They have not made an agreement. The president offered a proposal around dinner time to come down grants. Illion euros in the eu majority had been around 500 billion. But the austrian Prime Minister soundly rejected it. Thehis point, we have italian Prime Minister saying the hardliners are blackmailing the rest of europe. He is looking for something to happen because italy is one of the ones that benefits from it most. At this point it is hard to say. Support . Ey do they go into a fourth week of talks . A lot remains to be seen. Quite a stalemate. The g20 also grappling with the impact of the coronavirus when it comes to the worlds poorest countries. What have they decided about debt relief . Punt. Doing a already Suspension Initiative through the end of the year. They want to wait until closer to years and to decide what to do next. The saudi Prime Minister was pointing out that this suspension is going to ultimately make about 14 billion available to the poorest nations to fight the virus. Right now, 42 countries will get relief. Aboutuspensions equals 5. 5 billion for them. Is World Bank President urging the g20 to extend the Debt Repayment standstill through the end of next week. Next year. France supports that as well. Thank you a lot for that. Up later today, we will be speaking with the World Bank President. That is coming up on bloomberg surveillance. This is bloomberg. Rishaad we have a look at the business flash headlines. Boeing is running out of space for the 787 dreamliners and their factories. They said they would be sitting idle. Just threevering dreamliners in may and june. Apple is expected to have a new iphone produced in china. A company is buying operations from taiwan. It includes iphone production. Of the top stock performers in asia last year. Japan is looking to boost its chip industry. There is a plan the government could offer funding as it looks to protect stateoftheart technology. The Global Demand for electric cars is boosting a south korean battery maker that is now the worlds number one. It has surged more than 60 this year. It is now the sixth largest stock on the kospi index. Lifted by its deal with tesla and shanghai. Tell us why analysts are what are the expectations for quarter earnings . They say secondquarter earnings will eat the market estimates. They will regenerate the highly quarter profit. The market share in this industry rose to almost 35 in the world. That is the highest among their peers. He says they have a lot of customers in europe as well. They have a bunch of customers in europe. Countries are spending a lot of subsidies for the customers. Investorseasons why are focusing on this target. They have increased capacity. That is why they are now holding 120 billion of orders. Some investors worried that competition is getting tougher amongst these battery makers. They are questioning the growth of the electric vehicle industry. That is correct. Competition is tough. Tesla had an is event in september. Is this industry is so tiny. It accounts for the total revenue in the industry. It is only 3 of the global auto industry. Ironic. The industry has Significant Growth potential. Thank you so much for joining us. Biging at the markets, a uptick coming through in china. Elsewhere, a little bit of negativity. Rishaad we have a hang seng some which is a racing losses they had earlier. It could go into the positive column. Lets have a look at what is going on with the shanghai composite. We have the prime rate being held steady for the third month in a row. Authoritiess that have had some easing. Toy are waiting for this translate into some Corporate Funding cuts before they make any more reductions. Bloomberg is suggesting that the economy needs further monetary support. Points or sosis over the year. That is our position. Hang seng is moving positive but is pretty much flat. Overall, a day where we are seeing china equities under a little bit of pressure. Global stocks are beginning this week and mixed fashion. Companies coming out with their earnings. They are trying to bounce back with what is happening with a global pandemic. The Coronavirus Spread has gotten particularly bad in the u. S. The Los Angeles Mayor saying they are on the brink of another stayathome order. New york taking another step in its reopening. I think some of those virus concerns are reaching into the negative news that you are seeing outside of the Chinese Market today. We are seeing weakness in most of the other key markets. They are down half of 1 . Also weakness in asian currencies today. Plenty more ahead. They with us. This is bloomberg. 49. 50 favorites from anywhere in the house with the Xfinity Stream app. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Xfinity. The future of awesome. It is almost 11 30 a. M. In singapore. We are in the middle of the trading day and you are seeing the index lower for a Third Session in a row, mostly riskoff in these asian markets with the exception of what we have been seeing in shanghai. A big story coming through out of singapore today. The casino run by the adelson, hesheldon has agreed to settle that lawsuit that was brought by a former patron, meeting his demand for 9. 1 million singapore dollars, six point 5 million u. S. Dollars, according to a person familiar with the matter. The former patron is now allowed casinoso the moreno bay following that settlement which has been longrunning. Lets get the first word headlines now. The coronavirus continues to set new unwelcome records with u. S. Cases rising more than the past weeks daily average and best passing 140 thousand. Los angeles is being warned it is on the verge of a new lockdown although the pace of fatalities has slowed in arizona and florida. New york city aims to move to phase 4 of reopening on monday. Global cases are about 14 million with deaths of topping 600,000. Coronavirus cases are searching gingsia with sur in asia. Hong kong had more than 100 new cases on sunday with masks now obligatory in all public areas. Infections continue to rise in india after the total to pass one million last week with overall deaths approaching 27,000. They have more than half of total cases. Virus cases are again rising in melbourne, prompting a mandatory order to where face masks in the city and surrounding areas. More than 360 new infections were recorded on sunday with two 90snd a woman in their succumbing to the virus. Victorian officials ordering 3 Million Masks to be delivered in the coming days. Ae e. U. Remains split on virus rescue package with the netherlands and others under pressure to get in line. We are told nations are arguing over the method of dispersing about 800 billion worth of aid with grants or loans at the center of discussions. The netherlands is being accused of holding ransom over the precise wording of the plan. The u. K. May further inflame tensions with china by suspending its extradition treaty with hong kong. The foreign secretary is expected to announce the move later monday in parliament. Lets bring in Jodi Schneider. This relationship between the u. K. And china is becoming more and more fraught. Just four years ago, they were saying that it was entering into a golden era. What is the u. K. Signaling that will raise tensions even higher . Met golden era is certainly over. There are escalating tensions on a number of fronts. We will see the foreign secretary in parliament. He was expected to announce the extraditionf u. K. s treaty with hong kong, which is handed back to china in 1997. This marks a further escalation in the conflict, much like we are seeing with the u. S. , canada, australia, with china. It started with banning huawei from the u. K. s 5g network. We are seeing the u. K. Invited as many as 3 million hong kong residents to apply for u. K. Citizenship after china opposed the National Security law of hong kong several weeks ago. Been beijings response to the u. K. On their toughening stance against china . They have really threatened retaliation. U. K. Amidstned the , accused ofion bowing to pressure. Pressureected the directly, which Prime Minister Boris Johnson his indication for residents to apply for citizenship. Communist Party Officials have warned reddish companies doing business in china they are set for retaliation. This again is following what we have seen in the u. S. , canada, tralia, with china saying juliette Senior International editor Jodi Schneider with us in hong kong. Getting news from reuters that global banks are checking hong kong clients for prodemocracy ties so that is breaking true from reuters. We will keep you updated when we know more. India surged past one million virus cases but is this only the beginning . Our next guest predicted some 300 million positive cases in the country through a simulation model. We will have more on that just ahead. This is bloomberg. Rishaad india says is total coronavirus cases have passed one million, the thirdhighest number behind the United States and brazil. Our next guest has been very vocal in the way that india has handled the pandemic. He is the founder and director of Public Health Research Group center for disease dynamics, economics, and policy. Tell us, what is your beef with the way things have been conducted in india . Back in march, when there were just about 200 cases, i had predicted that there would be hundreds of millions of cases india needs to respond urgently. Performed test for people who had been exposed to the virus and found 10 million indians have been infected by that point at already. The reported cases was 50,000. India was undercounting infections by a factor of about 200 at that point in time and if know,ok at today, you theres one million reported cases but india continues to be amongst the bottom in the world in terms of tests performed per one million population, 138 on that ranking. India is the testing, testing far too little to be able to provide a reliable figure on the actual number of infection, which in my estimate and that above it, it crossed one million infections. The official number is one million but we are probably picking up one in every 100 infections at best. Rishaad thats right, so the true number is huge is what you are suggesting here. In a country which is so densely populated in places, it is a very big ask, is it not . There is massive pressure on funding, too. Is there a better way of isolating and perhaps stopping the spread . First of all, counting cases through testing is not the right way to go. Many countries are doing this but we have to be careful that every time we talk about numbers of cases, these are reported cases, whether in the u. S. Or the u. K. , and it is a function of testing. Using this kind of testing to count cases does not make sense because most people are asymptomatic and not at risk to themselves. However, we need to pick up clusters of cases in places and that is best done through a different method than serological testing. India has not deployed a huge amount of testing. Also, the other option is to use take our current testing methods, and test them in one go. Deathe to count the accuracy because every death represents probably 100 underlying cases. Tore has been an incentive underreport that, and therefore, there is a serious undercounting of deaths in india at this point. Poor are hit, the hardest here. They ramanan they absolutely are. That was followed by a lockdown for three months and in many ways, it continues in many parts of the country, and the disease was effectively transmitted to the poor. The rich are able to social distance. The poor are not. The disease is spreading the most amongst the poor but everyone is affected to some extent. Certainly, the poor are disproportionately affected. The povertyis is line. You are saying india cannot afford to have any more lockdowns. In that sense, is it going to be a situation where the disease kind of runs rampant across the country . Ramanan unfortunately, that is probably going to be the case because there are lockdowns in various parts of the country at city levels. The lockdowns themselves represent a failure of testing. If you have good testing, you know where the cases are. You dont have to lockdown an entire city or state. Unavailability of testing makes it very difficult to rely on that as a way in which to control the epidemic and you are right that india cannot afford anymore National Lockdowns and probably cannot afford many state lockdowns either. This is really the only effective way. It is a very blunt instrument, not terribly active, but all options, the only effective method available. Since this will not be available, it cannot be done indefinitely, you are absolutely right. It is a disease that is going to run its course. India will be at the opposite end of the country. Neverption was perhaps available but certainly is not available now. The other concern is we still do not have a vaccine but even if we were to get one, how likely is it not only the t, bu getting to the multitude of people in india . You are saying perhaps not by 2022 until we would see that happen . Ramanan i think there is a huge about of overt optimism where the vaccine would be available. We dont want to take shortcuts because we are vaccinating a huge number of people. In a typical year, there are 26 million children born in india every year. There is no argument that they should be vaccinated. When you cannot vaccinate 26 million children every year, it is a tall ask to have over one billion people vaccinated and that in a short period of time. Is virtually impossible. I am not saying i think it is very unlikely that it can be done in the space of a few months. Something like that would take a few years to carry out vaccines on one billion people. Juliette we talked about how the poor are clearly the most vulnerable. They are in every country. There are some countries that have huge quarantine facilities in place. You look at what is happening in hong kong. They are ramping it up there. Talk us through what the Health Care Capacity is like at the moment in india because early on in the pandemic, there were scenes of hospitals being overcrowded, just in the hallways and the like. Ramanan those terrible things were in delhi as well. Therefore, it was not a scene that you saw in china i ch aannai, for instance, but now these things are being witnessed in bangalore. Also puna. The virus does not affect all at the same time. Very different in different states. Story we areis the going to see in many larger and smaller indian cities over the next three or four months. Seems to be no way to stop that from happening. Look at im sure you other countries and every country is unique, but is there one country in particular which perhaps india should be learning from . Ramanan you are absolutely right. India has some very unique challenges which make it unlike any other. The good thing that india did do was unlike mexico, brazil, where there was not senior Political Leadership willing to acknowledge the importance of the virus, that was done very early in india. Lack ofoblems reflect a investment in Public Health over decades. They reflect governance capacity that is only able to work in a law order mode to shut down places rather than enforce things like mass wearing or social distancing. Order that can only work at a fourth tier or nothing at all and that is the price we are paying for that lack of governance. The last thing is that there is also a lack of education and people do not understand that this is important. They do sometimes. People do wear masks. I think these are unique problems. The lack of Public Health facilities. The governance challenges and also the social capital challenges put in their head. I dont think any other during this pandemic. Rishaad thank you so much for joining us. Ramanan laxminarayan from the center for disease dynamics, economics, and policy. We have the open upon us in india as well. Do, and it looks like a little bit of an upward Movement Similar to what you have seen in the Chinese Markets when a lot of the other markets in asia are tracking lower. This nzx rising. 6 on the open, marking its fourth day of gains, seeing gains on the nifty, led by the financial stocks today. We are also hearing indias top court will hear its telecom dues case. The central bank holding traders to bond awaiting the results of the 300 billion rupiah or 4 billion debt switch which was happening later today. A positive open for indian equity markets. Still to come, investment boom in indias tech sector has prompted some of its mega start ups consider going public. Details on the way, next. This is bloomberg. Rishaad lets have a look at bitcoin, trading shy of the 10,000 levels. We have its shot at 10,000 level weaning. The price is effectively stuck in a narrow range. We do have the worlds Biggest Crypto Exchange by trade volume. Claiming it is only a matter of time before sea levels move higher. I guess they would have to say that, wouldnt they . The founder and ceo spoke exclusively with bloomberg about when that might happen. I honestly dont know what will take the coin to break this. Theres a number of factors that could happen. It will probably just be time. With other microeconomics things happening with quantitative using and the fiat flow into the economy, i think sooner or later, it will rake out. I want to get your view on the twitter hacking and the direction people were told to direct bitcoin into three different accounts. There is more of a paper trail, but does this kind of give a bit more fire to those who criticized users of bitcoin for being, i guess, supporting some of the lack of transparency and the fact that there is more criminality when it comes to Transactions Associated with bitcoin and old coins as well alt coins as well . Changpeng bitcoin is more transparent than traditional fiat. If somebody robbed a bank, it difficult to track fiat cash. With bitcoin, people know they are pretty aggressive and people are cracking down. I am actually pretty confident that given the way that the way the hack is done and the crime is done, a very high degree of certainty. The case only happened a few days ago, so hopefully, Law Enforcement probably will have a pretty good chance of cracking it. This is not a case where bitcoin did something wrong. Hacker wants bitcoin because it is valuable. People rob a bank. They want cash. Let me ask you about another idea that crypto thatsiasts go to, the idea cryptocurrencies can act as safe havens, especially at a time you want to hedge against the macroeconomic environment when you have inflation and the likes. But then, during the whole we have seen bitcoin, ethereum, behave like other assets. At one point in the canned danek pandemic, we saw bitcoin and ethereum moving in lockstep with the s p 500 had what has this crisis jonas about what this particular and see hedge can actually mean . Safe haven assets should not be taken too literally. Theres always multiple factors affecting the price of assets. If you imagine bitcoin as the the flow works with the titanic. Just not able to sustain that kind of low. When we look at traditional markets, the whole market crashed. Stockmarkets probably 1000 times bigger. Ofn that goes down, a lot people losing a lot of money, and many of those people who have crypto investments will want to cover those investments. Into cash. A large asset category going down. The longer time horizon, with so much quantitative easing, fiat flowing around, i think the properties of bitcoin are welcome over time. A quick check of the latest business flash headlines. An investigation into last weeks highprofile twitter hack has found that several Staff Members were manipulated into providing sensible information, allowing passwords to be reset for some users. The hackers are said to have tried to sell some usernames but twitter insists data was not downloaded. The number one advertiser on facebook has slashed ad spending according to a report in the wall street journal. Disney plus spent 200 million on facebook in the first half but has pulled that along with its advertising of hulu. A growing list of Major Companies have pulled ad spending over facebooks handling of hate speech and misleading content. The influx of investment in indias tech sector your is encouraging its own mega startups to go public. The first one might be the online insurance platform policy bazaar which is backed by softbank. Thats get the details from bloombergs tech reporter in bangalore. Noteworthy . Ipo the first in the ipo flood in india in the next two or three years, at least half a dozen Technology Startups large ones such as Customer Engagement startups. They are looking to go public in the next 24 months. This is in the backdrop of many Global Technologies companies such as uber and lyft having underwhelming debuts on the stock exchanges. Wework had to jettison its ipo positions. Since then, indian stocks have been focusing on economics and profitability. In these ipos could offer investors infuse more investments in indias digital startup ecosystem. Any more specifics, any more details on this initial Public Offering . Ceo toldhe founder and me that policy bazaars valuation will be 3. 5 billion. They are changing as we speak. The area could be looking at divesting. Shortlisted a couple of lead underwriters for several wall street banks. Federations are in full swing. Juliette sorry, what is the growth like in indias simtech sector . indias Digital Economy is flourishing because inexpensive platforms and Broadband Services have created the worlds secondlargest internet after china of over. 5 billion users. Financial transactions are particularly growing strongly and policy bazaar is among a group of simtech startups trying to topple the dominance of government and bank backed insurers in our Financial Services segment, insurance segment, which is tightly regulated. Economic uncertainties are rising, and there is a young insurable population looking to looking for insurance plans and the need for Retirement Planning is also going in the market. , thank youritha rai so much. Union,ord on european there are talks to get together and complete a virus fund which seems to be an deadlock at the moment. E. U. Leaders will reconvene. They have yet to reach a deal on this Recovery Fund as it is being called at the moment and that is what we have. This summit in brussels the last two days, this has got into a fourth day now. Leaders still have not reached a compromise. They hope to try and do something later today. This is bloomberg. Its pretty inspiring the way families redefined the word school this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. The following is a paid presentation brought to you by rare collectibles tv. 15 seconds. Guidance is internal. 12, 11, 10, 9. Ignition sequence. 6, 5, 4, 3, 2, 1. Zero. We have liftoff