Transcripts For BLOOMBERG Bloomberg Markets Asia 20240712

The concern about the stronger currency, not to worry just yet. We saw that euro jump. Ist weakness on brexit sparking a rebound in the dollar. Your offshore renminbi, we are set to break six weeks of gains. 683 right now. That is below 40 right now. We have copper also and gold on the back foot. Oil prices on track for the biggest twoweek drop since what we saw back in april. Lets get to the first word news, we have Karina Mitchell. Senate democrats have shut down a relief plan proposed by republicans. They failed to get the 60 votes they needed. Estimatedican plan is at anywhere between 500 and 700 billion dollars. The democrats are proposing to. 2 trillion. 2. 2 trillion. Boris johnsons government refused to scrap plans to reignite the divorce accord. The eu is threatening legal action if the u. K. Does not drop the legislation within three weeks. Thes president has painted an optimistic picture. Economic data suggests a strong rebound. They kept policy on hold for Economic Contraction from june forecast of 8. 7. She says a bounceback will be about 5 . Risksrall, the balance of to the Growth Outlook is seen to be remaining on the downside. This assessment largely reflects the still uncertain economic and financial implications of the pandemic. Hong kong police have arrested 15 people in connection to a surge in digital shares last month. The Media Company which publishes books and magazines is owned by this local government critic, jimmy live. Jimmy lai. Arrest to remain on suspicion that legal funds were made in a conspiracy to defraud. Global news, 24 hours a day, on air and on bloomberg bloombergquint take. Para by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell, this is bloomberg. President trump said he will not extend the deadline to sell tiktoks u. S. Assets. We will either close up tiktok for security reasons or it will be sold. There will be there will be no stanchion of the tiktok deadline. With anything requiring beijings approval first, tiktok is likely to miss that deadline. Four days ago before the deadline, what is the likely outcome . Stephen it seems like it might actually be shut down. If donald trump is saying we will not extend the deadline wind we are also hearing from sources that they are seeking it is basically stating or indicating i should say that they will not be able to meet that deadline. The Chinese Government has put out a new regulation that retract requires the Chinese Government to review any been put forward. Including what the financial and Technical Details they are said to be quite substantial, the review process and timeconsuming. There is no way we could even get a bid in from either microsoft or oracle, the two main bidders and get chinese approval in time by Donald Trumps stated deadline of next tuesday, september 15. Is that the actual deadline . The band that he signed in the executive order was for 45 days. That would take it to september 20 but of course he has a second president ial executive order that requires the sale of tiktoks u. S. Assets. That was a 90 day. From august 15. There are three deadlines, the state is one, the actual written one on the ban and the second written executive order for the sale of november 12. If donald trump is saying we are not going to extend the deadline , maybe that is the november 12 one. There is still a lot of question marks. It makes all of these deadlines and this deal even more complicated. Where does this leave the bidders . Does it drive up or down the price . Stephen it makes the bidding process a bit more, kiddo. To pass muster. That is by the price tag is all over the place. We heard anywhere from 20 billion, upwards of 50 billion. We also heard that initial bids were down around 10 billion. This is a forced sale by the white house. Bidders would naturally think i am not going to overpay for something being forced. Of 30 billion. D the price range is all over the place. Well have to see if the bids come in before the deadline and whether the white house actually says no, we are shutting you down. Next week is pretty crucial. That was Stephen Engle. Coming up later on this hour, the Bank Forecast for the dollar in the content to as the countdown to the u. S. President ial election begins. Just ahead, look at the tech sector with the head of aipac technology. Canthy even pessimists deny the case for semiconductors outperforming. This is bloomberg. Here are your they this business flash headlines. The pandemic has caught up with singapore headlines. The air carrier plans to shed three or 400 jobs. Singapore has been one of the few carriers to avoid job losses so far by furloughing some workers and redeploying others to hospitals and social services. Job loss is represented around 50 of the total workforce. Nissan has raised a billion dollars in its nonconvertible bond sale. This is one of the biggest ever deals in asia. Soldapanese car giant securities for parts and they may be debuting a euro note offering soon. Biggestbased on its loss in 24 years. It has been struggling since the lost of carlos ghosn. Information on corporate clients was late. An internal investigation found the data on 275 companies was leaked to institutional securities including information on dealings and interactions and transactions with this investment brokerage arm. For the first time, a woman will run a major wall street bank. Citigroup has picked jane fraser as it next to chief executive officer. She will take over for my corvette. Lets get over to mike ho rvatt. She has broken the Glass Ceiling and now comes the hard part. Tell us about the problems that has ahead of her. Broughtel corbat profitability that. To bring thosee back to where they should be. They have to improve their technology systems. They have been on top of the regulators on issues about that for some time now. The job is just starting for jane fraser. It does not really start until early next year when Michael Corbat officially steps down. She rose up the ranks quite quickly as head of consumer banking. Tell us a bit more about what she can bring to the table that mike corbat could not. Er was named as president late last year. I think the timing surprised people a bit. They do not think it would be this soon but before that she was the head of a latin america business. 15 business is less than of the revenue at citigroup. It shows goes to tell you that fostered bank can do more to put people from different parts of the business and give them more experience in new areas to help train them for that number one spot. They cant fall back on having a pipeline anymore. Her experience, is very wide. She has overseen strategy to private banks, she has worked with a lot of High Net Worth individuals. Latin america business. Also, sprawling consumer business. That was an area that citigroup was working to improve. It seems i she has overcome a lot of obstacles when it comes to gender equality as well. I want to play a clip of that. Lets listen in. Truth. All it the ugly women are paid 73 percent median of what men are because we just dont have enough women in the higherpaying and more senior roles. That is even more true in our black population. It is true in different parts of the world with different populations. I think the piece now is to begin moving away from the ills of the past and behaviors of the past and start converging on a policy vision for the future. What does an appointment do for wall street . Are other banks pressured to do more now . Still prettys are stark. It is less than a third of the senior ranks at the banks that are women. A lot of those women are not in operational roles. That means it would be hard to make them ceos next. Like i mentioned before, they will able to pick someone who ran a business that was less than 15 of the business and maker into ceo form. Jp morgan has a few women in their pipeline as well. Jamie dimon has been there leading the bank for more than 14 years. That is another bank people look to to start breaking the Glass Ceiling as well. Wells fargo had the chance to do it last year and they ended up choosing a man to run the bank but janes name had come up in that respect as well. The regulators are looking for more diversity at these top ranks, it does not just mean for the top six banks, the top six largest banks, were then 100 ceos and financial forms have at the top of those firms. The numbers are pretty stark. Hopefully this is just the start of change. Just the start. That was are a wall street correspondent joining us from new york. We have plenty more ahead. This is bloomberg. Shares in the Tech Companies fell as the nasdaq recent correction loss esteem once again. Tech had sore despite the economic fallout from the coronavirus pandemic. Despite the economic fallout from the coronavirus pandemic. Great to have you with us. It is interesting. We have all these headlines about the complications with this we chat ban and then we see asia tech outperforming. How do you begin to model these types of disruptions right now. Right now . Thank you for having me on the show. Some things to note, asian tech never went up as much. When youre seeing the sharp correction in these days on the stocks, by these follow the flow of the Foreign Investors into markets, interestingly, korea and taiwan do have efficient data. We can get data. Data for adr that do have kong but we Building Technology funds, you. Ave not seen that amount some of the rally have seen here has little to do with those born investors. We are hosting a conference this week. Tech earnings are holding up very well. That will probably end up being a miss. All i was going to talk about the valuation side of things. For asiaeen a runup and rather than just asia japan at the moment. Even this whole theme of decoupling right now and the nationalism theme, do these valuations have more room to compress . Could they widen from here . I think the answer will depend on which part of tech you end up looking at. When you look at china, some of it to be enacted. It very largely depends on domestic china. The earnings element is very robust. This is outside of an extreme nario where you have we see these holding a very well. On valuations, asia tech valuations when you compare them visavis the u. S. , the thattions have not been great at all. Lu wishes are rich, we can call them cheap but theyre not in that irrational zone that you find with a lot of the largescale names in the u. S. When it comes to earnings revisions, you mentioned among asia tech, that has turned positive now, which segments are you seeing the most earnings upgrades in . Do i stick to the chips, the software . It depends more on the end market. One place that we have seen a consistent upgrade is demand and inventory. To work from home and the need to work from home it has been very strong. A lot of the world is working they did not have a home infrastructure at all. That is getting cleared. You valley to significant issues. People were not able to buy as much. There were significant shortages on the supply side. Tech was strong and we were expecting that to start winning by the middle of that quarter. What we are seeing now is something that could last into october and beyond. Intercame in from home has been very solid. Pickupe seen significant in gaming and movies. This depends on which and market you sought. Anything about entertainment from home is very strong. We have some breaking right now. I just want to mention to our videos viewers, there investing several billion dollars in singapore. This is the chinese owner of tiktok looking to at least expand and the rest of asia as they are facing all this criticism in the u. S. To peoplecording familiar with the matter. It seems like looking to spend several billion dollars. That is according to our sources here. That we will continue to follow that story here. You mentioned where to go in this asian tech rally here. Talk more about 5g and cloud. This is where things are going. Thelso see when it comes to troubles with securing 5g contrast. What opportunities does that open up . China has ramped up faster than anyone expected. Quarter, coming out from the lockdowns in march, it has been phenomenal. Smartphones inew china are 5g. We were expecting that 60 mark to behave. , this was locked down. 5g got pulled out of the rollout. That is understandable. We expect a similar scenario. 5g is clearly kicking very strongly. Cloud data. This is the move to the cloud. These are the areas that we will focus on. That is what the highend does on 5g. That is where the large market cap was. When you look at the index flows, that is where will have the biggest index. Because wegely started with the valuation. Much in the lower half. That could be one of the stronger bets. Almost certainly, it is a memory shortage. Thank you. Have a great weekend. Take a look at the markets right now. It seems like we are pretty immune. Tech, we are up three quarters of a percent in hong kong. 1. 5ent is up close to percent. Flushing young china as well. This is after the first listing debut where shares did paul. Not really too concerned about this whole trump announcement. This tiktok deadline extension is in place. There watching the likes of this as well. We are talking about this securities firm. A little bit of pressure there. Stepping down after pressure over that destruction. Some businesses could forgo that hong kong believes that could pave the way for more layoffs. Singapore Airlines Cutting three or 400 jobs. This is how we are playing into the japanese lunch break. This is bloomberg. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. It is 10 29 a. M. In shanghai. Karina i am Karina Mitchell with the headlines. President says there will be no extension to the deadline, despite reports that they were negotiating a delay. Bytedance has until september 15 or will be banned in the united states. There areing that complications with microsoft and oracle. Will either close up tiktok for security reasons, or will be sold. I am not extending deadlines. September 15. There will be no extension of the deadline. Meanwhile, microsoft says it has detected a series of cyberattacks aimed at disrupting the u. S. Election. Chinese,rom russian, and iranian hackers. It is targeting People Associated with the political campaign, as long as well as political advisory groups. Is attorneygroup more widely. Wildfires continue to rage on the west coast of the u. S. , the worst in oregons history. And to thees started south in northern california, the largest fire in that state, it continues to burn out of control. It burns for more than 1000 square kilometers. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in over 120 countries. Karina mitchell. This is bloomberg. Yvonne, back to you. Karina, breaking news on chris street. They are set echo street. A hedge fund here on giving investors money for the 2 billiondollar hedge fund, and this is signaling a strategy shift for echo street for that Market Neutral stand that they have. The firm will continue to find 6 billion and likely to close to new investors in the upcoming months. That line is coming from echo street. A pretty quiet friday given what we saw overnight here, so things looking better for the asiapacific. Take a look at that reversing losses as well. It looks like i spoke too soon. We are pretty much flat in jakarta. Nasdaq is looking better. Just under pressure for nifty. We are still watching these pairs as well, zero pounds on the strongest level against the pound and five months. Toward easing, and a weakness in sterling. Basically now, they have . 92 for that trade. Brent crude at 40. It can still remain robust. You see the correlations as well. They are actually breaking down that ismpare the names, starting to weaken a little bit. Theyightly strong are slightly strong, but you have to wonder if asian tech can still play in the region as well. Lets take a look at the echoing volatility is seen in the markets of late. Take a look at the onshore volatility is now the highest level since late march. Investors are wrapping up the yen given the rebound. Our next guest on implied volatility. Jitters on the u. S. President ial election. Bring in ken cheung the chief asian fx strategist. We heard that this could be a haven. Can you see is chasing these gains . China we that so wehe pboc and the fed, saw an encouraging, constructive cgb yield. We saw the trailer growth dynamic is pretty strong after the pandemic china growth dynamic is pretty strong after the pandemic. The u. S. Equities are getting more power. Solid,are still pretty even though there arises in the market. Good fundamentals on chinas side. Especially, iy, think the china Government Bond policymakers right rnb . Efer a stronger it could stimulate imports, but it could actually hurt and discourage homegrown technologies here, so it could counter the goal of dual circulation. Do you agree with that kind of view . We saw that the acumen was consumption market. Tioned that china will want to cut reliance. Motivated to use the depreciation for china growth because they are more relying on domestic growth right now and i think the policy is not in line with chinas intention with the consumption market. They want more info in the market and the depreciation will revenuee investors given the consumption market. Somenk that we have depreciation in the renminbi market. Yvonne still a lot of questions in the next two months with the u. S. Election. How are you factoring that with your part with your forecast on renminbi . Trumpe saw president still try to highlight his stance against china. I think there will be unpredictable of what happens after the election, and also if President Trump he would policy against china, i think it may reignite market concerns after the u. S. Election. We think that the market, the appreciation has been strong and steady with the china trade deal. For could be a transfer trade deal, for the and any risks. We see gains in the euro, the renminbi of course, are these enough for you to look at a structural downtrend in the dollar now . That the u. S. Downtrend is still cyclical narrowing saw a much view after the rate cut in march. On the other hand, the status for the u. S. Dollar and so, i think its too early to conclude that there is a downside turned right now trend right now. So, that is where we still it rather than look for a sharp appreciation. Ken, pulled out a second, we have breaking news crossing here. The right hand man and favorite candidate to succeed the prime minister. The comments that consumption tax hike is not needed for the next 10 years. That is what he is saying right now. Cannot improve finances with that being economic recovery, but that is the redline headline. Not needed for the next decade. Ken, your reaction to these kind of lines . Do you think this has any implications for the dollar and yen in any way . That japan had a fiscal deficit that is improving. Hit, the pandemic it, it did not allow for the japanese government to make any changes in its policy. We saw the pandemic hit on japan very significant. Is not good timing for the japanese government to do anything. Ok, lets talk a little bit more about the currencies you cover. The korean won. What else could you own in this environment given the strife we see . Ken i think they have been the asiang anin market. The yuan has been significant for the taiwan dollar since march. Risa u. S. Taiwan it will keep the taiwan dollar supported. On the other hand, from what we saw improving, taiwan because working from home patterns. From taiwan, for the taiwan dollar, but on the other hand, we look at more appreciation for the korean won because we saw pandemic, wethe ,aw the korean exports weak and info in the market there has been significant in the country. Yvonne ken cheung, thank you for joining us there from hong kong. Lets look at Slack Technologies now. Thes still confident in longterm growth after disappointing secondquarter billing. This highlighted the dependence on mediumsized businesses, which have been hurt by the coronavirus pandemic. Before closing more than 2 higher in the late session, there are a lot more opportunities for the Company Coming up. The billing missed is important. I think what happens is we are a company that is six and a half years old. We are coming into our sophomore year. Rightfully, there is skepticism on whether it is durable and all that. What happened this quarter is different. We had the global pandemic, 30 annual gdp and record unemployment. Talk about that more. February is 130,000. There are going to be a large number of mediumsized businesses all around the world and they accurately reflect the broad economic condition. When they freeze hiring, Windows Companies do layoffs, it shows up in our billings much instantaneously. Think what you will see happen over the next couple quarters, the next year, the next couple years, we will continue to build with investors in the market. We are confident that this is durable and that the future that we are building is one that has a lot more opportunity than the one we are leading. Bit long answer, i apologize, but i think it is important context. You warned that microsoft could retaliate against slack. How much of a competitive threat is microsoft . Their postureuch has changed behind the scenes. Are they softer and friendlier now . No change. It is hard to quantify. The important thing for us and probably for them is that the market is so big, they are not going to be a factor on our ultimate success in the short term. It does insert friction, there is a deliberate creation of good oldfashioned uncertainty and doubt. On the other hand, our rates have unchanged during this period. We consistently won in environments where teams go headtohead. A much more common case is that teens and slack is used along with each other, legs room. Like zoom. They are not replacements. Easier ifife be microsoft ceased to exist . Absolutely. Last yearowth from and acceleration in Customer Acquisition i think demonstrates that we are doing ok anyway. We are less than two months away from the election. Tiktok has been a lightning rod. If President Trump stays in office, what does that mean for business in the Silicon Valley and what about the flipside, what if biden wins . This is not a generic i do not deal in hypotheticals it is actually hard to know what the reaction and ramifications will be. If trump wins, we will get extra trump because he will have be emboldened. She doesnt have anything to lose anymore he does not have anything to lose anymore. Biden is going to be concerned with a return to normalcy. Passd of prefer the second. And as an individual citizen, i prefer that as well. I am feeling confident that this is not going to be a disaster, but because of the magnitude of the impact of things going wrong , of an election that does not work is so high. Ceo withhat was slack emily chang. Coming up next, digital share with a volatile couple of days. A connection to lasts big gains. This is bloomberg. Hong kong police have arrested 50 people. The Media Company owned by jimmy lai. The shares jumped on thursday after the news, but is falling once again here today. Lets cross over to our reporter detailsknong with the right now. Talk us through what has been going on and what happened yesterday. Arrest of jimmy lai ant month, theres been outpouring of support from people in hong kong looking and whitesmokes shares. Last months [indiscernible] arrested 15 people for fraud related to the surge last month. Police have said that sales are not a target for the investigation. Unusualarly an situation. Yvonne the start has been going has been going crazy. Why has the police been involved in this case . Is a good question. Policeolvement of the there is one that we would not this has not been the case here. [indiscernible] quite unusual. The efficacy [indiscernible] new have not given information today. Its clearly an unusal one. Would normally expect access to market transactions to form a part of any investigation into manipulation case. Should we expect that the share price is going to remain volatile then . Gregor absolutely. It has been the case over today. So far today. Particularly in small time stocks [indiscernible] the [indiscernible] most of its shares are controlled by jimmy lai, so it and thatt category, has been the case today. The arrests have not stopped people from buying the stocks. They almost doubled at one point. 20 , the almost highest level in a month. 11 , but it has fallen. A lot less than yesterday. Capable ofit is continuing. Yvonne our reporter joining us from hong kong. If you want to catch up with us on our interviews on our shows, check out tv go. This is bloomberg. Yvonne a quick check on the headlines. Bytedance says it plans to make singapore headquarters for the rest of asia. The beijingbased company is spending billions of dollars and adding jobs over the next three years. This would come as a crucial returnstrump oracle as businesses work remotely during the pandemic. After falling 6 in the previous quarter, oracle has been revamping its Business Model to provide more of its software through the internet rather than ship boxes. The government will offer incentives to a range of industries, from carmakers to pharmaceuticals, as it looks to lure business away from china. Two Dozen Companies including samsung have pledged to send up mobilephone factories. We will take a look at the india open as well. We are seeing a price action this friday morning. Not a whole lot of conviction the u. S. T we saw on we are mostly a mixture and equities,. 7 . We have seen the nasdaq futures point to the positive side. Plenty more to come. This is bloomberg. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. Yvonne it is almost 11 00 a. M. Welcome to Bloomberg Markets asia. Top stories as President Trump refuses to stop the clock on tiktoks deadline. One of the toughest Glass Ceilings on wall street. The first woman to hit a major u. S. Bank. After months of resistance, Singapore Airlines joins other carriers. Positions. 4300 singaporefollowing in the news. Bytedance the news that bytedance. To singapores stocks on hold. Global stocks on track for the third backtoback weekly decline since march. Weve seen mixed movement coming from asia today. 3 in hong kong. 4 . By about we have seen what is going on in sydney following the departure of the ceo in response to concern in investment pressure. Saying that it must restore confidence. Have a look at Indian Markets and just about 43 minutes. Minutes. T about 43 seeing the biggest single game since monday. Indicating a move downside to some resistance at higher levels. Thailand coming on stream with. 2 . That is reflective of this industry bodys private sector, expecting the gdp to contract this year. Year indian just over 6 yield. Lets get you to the first word news. Lets join Karina Mitchell. Citigroup has named fraser as the next ceo, the a walloman to head up street bank. She has been with them for 2000 since 2004. She will replace the ceo who in february. Ing stepping down under work indictment by his successor, rio has been in pressure after destroying sites back in may to open up mining sites. Jacquesements will remain in his role until a successor is found or until may next year, whichever happens faster. Not go far enough. The republicans failed to get the votes they needed to advance the bill to a debate in the house. The republicans at estimated that the democrats are proposing to trillion dollars. The u. S. And the u. K. Are heading deeper into a split without any trade deal. Refused toernment strap plans. The eu is threatening legal battle if the u. K. Does not drop legislation within three weeks. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in over 120 countries. I am Karina Mitchell. This is bloomberg. President trump says he will not extend the deadlines for bytedance to sell tiktoks u. S. Assets we will either close up tiktok for security reasons or it will be sold. I am not extending deadlines. There will be no extension of the tiktok deadline. Requiring beijings approval first, the deadline will not be lifted. Lets get more from Stephen Engle. What is the likely outcome here . Puts bytedance and the president s relationship in jeopardy. Already installed new rules that they are looking at a bid, the Technical Details, the financial issues, that reviewer is said to be a substantial review that will take a lot of time. We have not the formal bids from the two likely bidders, including oracle. A lot has to happen over the next two days if that is the letter of the law from President Trump. , there are several deadlines. September 15 is what President Trump says is the deadline. But the ban, the executive order, to ban tiktok was signed on august 6. It was a 45 day period. That would make the deadline technically september 20. Not much more room, a little bit more wiggle room. There was a second executive order signed on august 14 requiring bytedance to sell tiktoks u. S. Operations and that was a 90 day period. That would be a deadline of november 12. There might be wiggle room right now but the it is getting to the wire. We had some newsbreak in the past hour. What do we know . What we are hearing from people familiar with the situation is that bytedance plans to make singapore its beachhead for tiktok for expansion in asia outside of china. It is looking to expand several billions of dollars at several hundred jobs over the next three years. It will be applying for a license to operate regional banks, making singapore a key place in asia. The plans include an establishment of a data center. It is a critical juncture for tiktok and its global ambition because not only does it have trouble in the united states, but in india, there have been bands on security. The u. K. s poised to possibly been tiktok as well. You are possibly faced out of india. The u. K. And the u. S. , singapore may be a little bit friendly. Our correspondent Stephen Engle giving us the uptodate news. A tale of two economies. We will hear from steven about India Driving into a deep hole. But next, we talk global massimiliano bonduri. A way thell in distance environment . This is bloomberg. Asia stocks heading for a second week. A mega cap highlighting a lingering concern. Lets bring in massimiliano bonduri. Sgmc. The ceo of looking atted a bit of a meandering by those companies for the time being. Absolutely. Far is have seen so healthy. A number of the evaluations have gotten ahead of themselves. Global investors are looking to. Evaluations have come down if you see the market is not in away from all, far what we saw in march. Gold has not moved much. There is no panic out in the street. Just a healthy correction. We believe it could be an opportunity for investors. The point is it might be like catching a falling knife. Dip further . Er to time. Hard advantage of optionality. Thatould get entry levels will cushion the entry point. Avoid what hasto been overhyped over the past three weeks. Stretched. Are maybe stay away from those because they may be more volatile. Solid fundamentals, good cash flow, good Growth Opportunities those will remain attractive and a zero to negative Interest Rate environment. A lot of what has been underpinned is Strong Language and Forward Guidance by Central Banks. Curious to get your take on what we will see next in terms of stronger guidance on yield control. It would be the National Next step. What they have done so far is given themselves a very wide mandate. , buterage of 2 inflation nobody has details with respect to the calculated average. In practical terms, they have opened the door for what is required, and we think the next step will be yield control. Targeting the longer end of Interest Rates in order to keep our kids markets low for little bit longer. We have been watching what has been happening with the dollar, the continued weakness that you have seen to. We in fact see if we do, which assets win in a global currency war . If we say global currency war, the asset will be gold. Metal, it is likely to do extremely well. Amount ofe massive fed stimulus. Look at between budget stimulus in the u. S. Of course, in the short term, especially when you get risk aversion, like we are experiencing in the last few weeks, you could get shortterm appreciation of the dollar. The medium term is to see the dollar weakening and we think that it will head downward for the greenback. Shows how people are betting on sterling getting weaker and weaker. You have a chart here that shows sterling with reversals, predicting we will see further weakness. Perhaps it is lending some support to the dollar as you would tell from the dollar index. The path of least resistance to the downside . There will be continued pressure on the sterling because of the conversations going on due to brexit. It seems that right now the position has been increasing. We do not think that will be the final outcome. You are going to see the u. K. And eu playing hardball. Term, itin the short will depreciate further from here. T will be a broad depreciation it will be against the other overall, webut still think that it should not occur and not materialized. Of shortterm, be mindful tactical shorts on that currency. Always great to get your insight. Coming up, after resisting, Singapore Airlines will drop joins other airlines by cutting jobs. Details next. This is bloomberg. After months of resisting, Singapore Airlines has joined the noble airlines in cutting jobs. It will eliminate around 4300 due to the coronavirus pandemic. Will joins us now. Tell us what the situation is. Good morning. And somes are coming have already been done through hiringetirements and freeze. That is a big deal. Ti comes after the carriers u. S. D 8 billion in the it has resisted these cuts. More money needs saving. It has been welcomed by the markets to an extent, but it does show it is in desperate need of more money. Staten the line, a dire for the inudstry as a whole. Yes, it is considered a top airline, so it is not good news for anybody really. Singapore airlines is a little unique in the fact that it has no domestic markets to fall back on. It has 7 of, prepandemic capacity because of all of the border closures. Domestically, but it does show that trouble is everywhere. Jobs have been lost worldwide. Due in thect comes u. S. Singapore does not have a domestic market. They are undergoing a Strategic Review at the moment. Someuld probably expect announcements from them soon as well. Thanks for that. Perhaps no sector has been hit harder than the travel and tourism sector. Airport lounges and interests across the sector told bloomberg how this sector is going to transform. The way we were hit, we lost business. We are lucky now 40 ofopening operations. Also in north america emerge fromtinue to this pandemic, what will airport lounges look like the post pandemic era . Out [indiscernible] responses. 2000 over 1600 of them say the airport lounge will be a new luxury to traveling. Hygine and safety in the airports. Initiatives like a task force to observe the hygiene in the airport, and we started an take away all the buffets and portion our food by using a touchscreen and a code. Wondering, given the uncertainty of what a post pandemic world looks like, how much consultation is going on between your business and governments to lay the groundwork for when International Travel does resume. Tell theonally i kids about this point as well, it is important that there are two major things. Consumer confidence and business confidence. Every person has to work together. Measures toisible are sure safety and hygiene observed in every respect. Boarding, screening implement. Ortant to all airport systems have to so we recognize the system so you boost the confidence of and travelers. This will boost travel, like in china, the traveling has reached country can continue the economy very well, and the second thing, the technology by where theser boostportant to confidence of travelers. Hoisee. As song business flash headlines. The company had information on clients late. An internal investigation found 275 companies. It included information on transactions with brokerage arms. Work from home has come to an end. York mustnew return to the Public Office by september 21. Employees with childcare issues and medical conditions are exempt. For a cloudnd Computing Service as businesses work remotely during the pandemic. Sales were at 1. 6 , just china million. Oracle has been revamping its Business Model to develop its software to the internet rather than ship it in boxes. With take a look at what is going on market wise. Hang seng coming back. Lets take a look at what is happening in regards to the china markets themselves heading into the lunch break. A mixed bag as well. Stocksing the csi having to a second week. It would be the first time we have backtoback losses since march. There we have it. 25 . Anghai composite by this is bloomberg. A. M. Is almost 11 30 what could get investors excited is this news that bytedance is planning to make singapore its beachhead for the rest of asia as part of its global expansion. Ofnning to send billions dollars after the u. S. Ban. Ted to new york with Karina Mitchell. Carino. The first woman to head up a wall street bank. Frazier, a 53yearold, has been with the bank since 2004 after a decade with another bank. The former ceo is retiring after eight years with the job. She will join the board immediately. A President Trump has made it clear there will be no extension and the deadline for tiktok operations. An executive order, bytedance has until september 15 two agree to a sale or the app will be banned in the united states. We either close up tiktok in this country for security reasons word will be sold. I am not extending deadlines. September 15. There will be no extension of the tiktok line. A microsoft has detected series of cyberattacks aimed at disrupting the u. S. Election. They see it came from russian, chinese, and iranian hackers. Along with advocacy groups and international affairs, microsoft says that the chinese targeted joe biden while the russians tapped it more widely. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in over 120 countries. Mitchell. A this is bloomberg. What a week its been. Never a dull moment. Japan coming back after our lunch break. It was a bit of a fluctuation coming through for japanese stocks there. Big onto those gains, they were up about. 2 . Watching what is happening to sales stocks, but the chinext is holding up ok. Holding up at about. 6 and south koreas market is in the downside that it will be monitoring the buyers for one or two more days. In indonesia, we have seen the latest 2021 budget deficit estimated. Yesterday, we saw that 5 drop in jakarta stock as they saw renewed social distancing measures as well there. Very much likely to impact the overall economy and its damage and its nascent recovery, so recovery will be at 5. 7 of gdp. We will continue to talk about those emerging markets in asia, malaysia, and india, due to Malaysia Central Bank capped its one unchanged at 1. 75 thursday, a record low, but it is easing into what is necessary. Other cases are increasingly becoming a worry. Cochranes is steven from moodys analytics. Lets start with malaysia because after that easing cycle, thisdid take a pause, shows that the economy is starting to do better but it is still grim here. The it is quite optimistic. They talked about 2021 being a much better year than 2020. At the numbers look pretty good so far for malaysia. Exports are up and Industrial Production as of last month was equal to about a year ago. Unemployment rate is down, down about 5 , and so things are looking down in terms of malaysia turning around. What they are doing is allowing fiscal policy to sort of take the heavy lifting right now to make sure that there is a floor under the economy and that those who are still hurting in terms of fmes get the assistance that they need. It has been one of the more aggressive Central Banks in Southeast Asia in terms of easing Interest Rates, they can take a pause for a while, at least until the fourth order and see how things go. Forecastnot quite a when it comes to growth and inflation. What are you expecting for the remainder of the year as we also at the big moving Energy Prices that has a big play in malaysias economy . That is right. I do not think there is much prospect for inflation for the rest of this year, at least. Demand locally is still modest. And i think that will remain the same until we get into next year as the economy picks up in 2021. There is a Greater Prospect for inflation. In terms of the economy, i do think that q3, the numbers will be looking pretty good. The economy fell for the first half by about 18 from the peak in the late 19 2019. We might see a surge of perhaps 15 turnaround in the third quarter. That still would not get us back to peak and my expectation is gdp we probably do not see recovered to its previous peak until may be the end of next year. We will have a good quarter this quarter in q3, and then we will see a bit of a slowdown as the Global Economy takes a while to achieve some vibrancy again. Speaking of vibrancy or lack of, there has been suffering as it struggles to control the coronavirus. What do you expected then from the rbis . India has been hurt really badly. They had the strongest hit to gdp than any country in the world. Secondquarter gdp fell by over 25 . The lockdown was long, very strict, and that is going to weigh on economic recovery. Given that the downturn was so severe that there will be a number of smes that never recover. The Small Businesses and individual households are going to have a tough time turning around. My guess is that the rbis will have to cut again. Isis tough because inflation fairly high in india. Inflation around 5 or so. 4 right now,at so in a sense there is not a lot of room for the central bank to prove to move, but because the fiscal response in india has been rather modest, much less than what has happened in malaysia, the fiscal response has been strong and very well targeted towards those that need the help. Look at india bit more. A global epicenter now. I am sure that the estimates without economy has gone through the window. With that economy has gone through the window. I do not think if he gdp returns to a previous peak by 2022, i think that is a best guess perhaps. It is going to be a long road back. I think one of the problems in india as well is that investors will be looking at countries that are able to manage policies and the policy response very well given heightened uncertainty in terms of both geopolitical risk and now Public Policy risk as a with regard to the pandemic and any other issues that may come up. Climate issues, hurricanes, typhoons, and such. Where governments that do not respond well to the coronavirus, investors may not so favorably on those countries in coming years. The thing is here people look to the reserve bank to do something, and they may well do that. With the country and the economy in that structure, has that a limited affect and one of the changes impact with the pandemic is bringing people back into rural areas, certainly the government there has to step up to the plate. Have they done enough . The fiscal response in india has been very modest and i think the most effective move in india right now would be for the spend more to direct more support towards the unemployed, towards the lower income households, the rural households, and provide that support that is necessary to keep Consumer Spending going. I think that is going to be critical over the next quarter to two quarters before the economy gets back on its feet. That remains to be seen, what the government will actually do. Absolutely. Just looking also at u. S. China tensions, how did they play into the region as well and what are you looking for as an economic fallout from it . The tensions are creating a lot of uncertainty amongst companies. Of course, a lot many people are waiting to see what the outcome of the election will be in early november. What i am seeing is that there is a tendency now to spread investments around to diversify supply chains a little bit. You do not see a big exit is from china, but you do see this sort of china plus one approach that Many Companies are taking now of maintaining their presence in china, both as a point supply chain, but also as a production point for distribution in its domestic markets in china. Vietnam is onee, in that Foreign Investment and felt very sharp in the First Quarter but came back in the Second Quarter pretty quickly, as investors from korea, from japan, from Singapore Still looked toward vietnam as an alternative location. The rest of Southeast Asia will probably see some benefit going youard from this if well, china plus one approach. You for your insights, Steven Cochrane from moodys at moodys. Lane for Business Travel in line with some of the other moves that singapore has had with other countries. We are hearing that will start on september 18. This will be a reciprocal green lane for business to travel only. As you know, with the other green lanes, there have been a lot of restrictions in place to meet these guidelines and there will be Business Travel on september 15. Sick Singapore Airlines down, they will cut through 4300 jobs. Latest on the himalayan border dispute. The two countries planning to deescalate tensions again. Whether they can keep that promise. This is bloomberg. Pledging to deescalate tensions at the himalayan order after the meeting between prime ministers. In new delhi. What was the outcome of this meeting . Good morning. Now that there has been the latestthe they of talks yesterday, ended on an optimistic note. Vee Foreign Ministers ha deescalation. War is not whats best for both countries. Disengageto look to from the border. What were some of the main issues discussed . Lasted say this meeting hours, a long time. They had aeeting, better understanding of why china had such a large number of troops. That thats still not clear. But way, it is still continue talking. Announcingindia incentives for business. What are these and are they linked to these tensions between new delhi and beijing . Thats a good questions because they have taken a big hit since the pandemic. They shut down for more than 40 days. We saw this in the last quarterly numbers. At the same time, it is trying secondhina is their largest trading partners. China is trying to offer stock most of thesend are very heavily there are solar panel makers. Consumer appliances. All imports from china. Larger plan with india, thinking about the supply chain from china. Our reporter in new delhi. We are on the way up. This adding to gains we saw yesterday. Reliance stock thats all according to a person with knowledge of the matter. Down. 25 . Jacques leaving. More on that. Back to one of our top leaving the Jacques Company along with other top officials. This comes from investor profession pressure in the discretion of sites in australia. The decision was made by the board and major investors in the pension fund. He will stay in his role until the end of march next year or until a successor is appointed. Bloomberg spoke with one of the at theominent advocates university of melbourne. That will give the company room for what is the most that they should take. To find the right person to rebuild the internal culture of the company so that the company destroy continue to important aberrational sites aboriginal sites and traditional honors with the contempt that jacques had. An important, highprofile, very significant step for corporate australia, a firstourse it is step. What more needs to be done by the new ceo and leaders across the Mining Community to repair some of these relationships . What role does the State Government need to take . Leadersginal responsible for Cultural Heritage across australia have formed an alliance and have recently met with the foreign minister responsible for Cultural Heritage. We are asking for the minister to lead and australia Wide Partnership approach to revising the very out of date Cultural Heritage legislation that allows toing Companies Like rio destroy our Cultural Heritage on a whim. We know that one of the reasons that they made the decision to destroy caves that had evidence of our occupation, the honorsion of traditional 46,000 years ago was to to make contractual obligations to provide a particular mix of iron ore exports to china for the pilgrimage, and the decision to destroy the caves appears to be made on the basis that the or the neath those caves was highgrade ore. Have minors instead of trying to get the consent of the communities there . Caves destruction of the is apparently legal. Under the terms of the Cultural Heritage act and the indigenous Land Agreement negotiated with the traditional honors many years ago, which is registered in australia. But we can see from the evidence of rio to the Senate Inquiry into this matter, evidence was verys which misleading. I know that the chairman has called out the company for misleading Senate Inquiry. So the neither the legislation nor the native title agreement protected the Cultural Heritage and the company was able to find ways around it, legal obligations to go ahead and destroy this process site precious site. What it be helpful to have more representation of cultural societies to avoid such an issue . The vast majority of rio to comes from the pilgrim deputy stated recently. It knows nothing about the pilgrim. Yes, i believe that rio tinto needs an aboriginal person on its board to represent the interests. The company has since the appointment of Jean Sebastian jacques has treated it like a Resource Company like in london. The board too should take note of how australians feel about how the company has treated the country in which most of its profits are sourced. Ofat the university melbourne, marcia langton. Industriesance saying that it will be selling its stakes. I was unsurprised that the government will going from rivals to partners. Willing to sell as much as 40 of Reliance Retail ventures, a 20 million deal would be the biggest ever between india and amazon. Bytedance is planning to make singapore its headquarters for the rest of asia and a key pillar in its expansion. It is spending several billions of dollars and adding jobs. A will, it will come at crucial time when President Trump plans to sell its operations. The carrier plans to shared 4300 jobs, which include jobs and positions. It represents 20 of the overall total workforce. Some have a brighter future. Singapore announces Business Travel to and from japan, something that starts next week. Of news coming through in singapore. Singapore tracking lower. Pretty flat, we are seeing global chart stocks on track for weekly decline. A little bit of upside coming through indonesias market. We see that 5 drop and looking at the big surge in the taiwan dollar as well. That is it for this edition of bloomberg asia. We will take a look at what is going on in the middle east. Kong. S hong look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Announcer the following is a paid program. It does not reflect the views of bloomberg lp, affiliates or employees. Announcer the following is a paid advertisement from time life. Saturday in the park i think it was the fourth of july musich listen to the oh listen to the music even the nights are better