Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

To the right with his choice of amy coney barrett. It would make it a 63 conservative split. Hitting a high know. Aims top behind bts raise 800 million in koreas largest ipo in years. Lets take a look at how we are setting up for the asian trading session. They hope to follow the momentum we saw in the u. S. Session on friday in particular with these gains in tech stocks. S p futures looking pretty positive,. 3 . Optimism as we get to the open in tokyo. A quiet first half of the week. We do have japanese throughput later on this week as well as decisions out of the philippines as well as india. Disney futures up by. 3 , as they continue to see growing concerns about the impact on the economy when some of these fiscal support measures start to peter out. We do have some optimistic news when it comes to the listing in victoria. New zealand off by 1. 5 . Dragged down by some of the dairy names. Tom the clock is ticking on tiktok. We are in our way from trumps ban that takes place midnight midday today in hong kong and beijing. Stephen engle is following the latest of elements. What do we know . Know thatell, we these deadlines are coming quick. There is another one as well with a soft timeframe, sometime before noon today, beijing time, which is midnight Eastern Standard Time is when that ban takes effect by the Trump Administration on tiktok in the United States. The apps in the android and iphone app stores would be removed or would not be able to be accessed by people who want to download it, nor would they be able to get updates, which would be critical to its survival. Now, the reason i said there is another deadline is because district judge carl nichols who had a hearing earlier today sunday in the United States on dance forst by byte this injunction he will give his ruling on whether to block that ban in a preliminary injunction. He has not given an indication which side he will rule, but he has said he will give his judgment sometime before that midnight ban. The attorney for bytedance said it would be, the ban, would be no different than the government locking the doors to a public forum, roping off that town square. Thats interesting because john hill used the same terminology, town square, that a california district judge used in granting wechat a separate injunction to be banned in the United States. The tiktok lawyer has told carl nichols in that hearing earlier today, sunday morning, he told the judge the impending ban is irrational given its parent is in talks to strike a deal with american entities, you know, when the president has force, has amended this sale has demanded a very quick sale. It is interesting, the u. S. Attorneys have cited a saturday judge ruling in pennsylvania by a judge. She ruled on a request by three tiktok users who said their livelihoods depend on tiktok. Also, this ban would violate the First Amendment rights of freedom of speech. This judge ruled against those tiktok users on saturday citing that there was no irreparable injury to users, and she pesticide the First Amendment concerns. Another top Chinese Tech Company is being targeted by the Trump Administration. Were not talking bytedance or tencent or huawei. Give us the latest on this new one. Another indication of the Trump Administration ratcheting up the pressure, semiconductors. Basically, a Commerce Department export ban. Irms must apply for a license to export certains products to chinas largest chipmaker smic. Cuthreatens to cut smic, bu them off from u. S. Chipmaking equipment which is vital for manufacturing semi conductors. As the Commerce Department letter dated september 25 stated that smic and its subsidiary percent an unacceptable risk of diversion to a military end use. Smic said in a statement it is not has not received any notice of the sanctions and it has no relationship with the Chinese Military and does not make products for any military end users or uses. Well have to see how this one plays out but there is indications that this was a bit of a compromise between the hawks in the doves within the Trump Administration. Not to put smic on the entity a far more wide ranging blacklist to get this company but indicates according to people familiar, that that is still a possible option. Stephen engle with the latest on u. S. China tensions. Now, lets go to Karina Mitchell with the first word headlines. Thank you. Chinas economic rebound is continuing with Industrial Company profits growing for a fourth straight month. Rising 19 in august. Although profits year to date are still 4 lower than 12 months ago. The statistics says a rise is due to the sustained recovery in manufacturing and demand and lower business costs. Meanwhile china is tightening his grip on the Western Province ocean zhang despite growing international criticism. President xi is saying communist Party Policies are correct and must be adhered to longterm. The u. N. Estimates as many as one million ethnic uighurs are being held and reeducation camps. Meanwhile, the australian budget deficit is set to widen. But is seen being mitigated by the resilience price of iron ore. The cash you look up lint will be the equivalent of 140 billion, more that was seen in july. The australian economy has been in turmoil amid slowing growth, tensions with china and the coronavirus lockdown. Zealand bubble with new could open by yearend as infection rates in both countries remain low. Authorities have relax some curbs in melbourne ahead of schedule. U. S. Here reported infections rose in line with the sevenday average as global cases near 33 million. Deaths are about to top global one million. News 24 hours a day on air and on Bloomberg Quicktake powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Shery up next, a new report signals trump has paid scarcely any taxes in years. Well discuss the New York Times investigation showing the president has hundred in millions of debt coming due. Later, the korean label between bts is about to have another moment. The kospis biggest trading debut in years. We will discuss that with daniel yu. This is bloomberg. President trump reportedly in income taxes in 2016 in 2017. A New York Times investigation revealed billions in losses from golf courses and hundreds and millions of debt coming due in the next three years. The president dismissed the report. Totally fake news. Actually i paid tax. As soon as myt tax returns, it is under order, under order for a long time. The irs does not treat me well. Lets bring in david westin who has been following the story. David, tell us more about what the report is saying or what the indications are the implications are here . Very lengthy report from New York Times who of gone over two decades of his tax returns and he is not pay taxes and a lot of years, 10 out of 15. 750. Ar he was is notys number one he paying a lot of income tax which is not good for president and the number two the reason he is not paying his because he is not been that successful as a businessman. He says its fake news but that is the upshot of the report. How does this play into the Campaign Narrative and coming up in the president ial debate this week . David you know how he will be in that first debate. It will be a big subject of the debate. No question. Joe biden will raise it if no one else raises it. At the same time, right now i think President Trump the more time he spends away from covid19, his response to it and the economy the better, ironically. This is distracting us and he will say he is really smart yet really good lawyers. That is why he did not pay taxes. Its sort of a distraction in that sense and that may actually be what he wants. David, will his choice for the Supreme Court Justice Amy Coney barrett have any bearing on the election . David it will. It is very important. We have got five weeks to go and we will be consuming part of that five weeks with the confirmation hearings, starting october 12. It is a big issue, it really appeals to his base, although i think his base believed in him on the Supreme Court anyway on issues like abortion, the Affordable Care act. It will be an issue. Although most pundits think he will be more of an issue for the senate race because we have some really critical senators, republican senators like Susan Collins in maine. They could be really affected by this, by this confirmation battle. Our bloomberg balance of power anchor david westin with that. Coming up next, the u. S. Dollar is coming up its strongest week since early april. Thats next. This is bloomberg. Get a quick check of the latest business flash ahead lines. When the Program Expires on october 3. The ceo says america will continue to urge congress to approve a stimulus package saying the looming jetliners potential layoffs will further hamper its ability to rebuild after covid19. Qatar airways has received 2 billion in state aid as the coronavirus crippled global air travel. Of country joins a list nations forced to save their flagship air carriers. Its fiscal year shortfall was also hit. Oilworlds top independent trader says prices have little room to rise in the next few months as covid19 continues to curb Global Demand for energy. The conventional wisdom was things would improve in the Fourth Quarter but warns that the sector remains uncertain. Renew travel and social distancing restrictions are dragging demand back. An expects to return to profit next year if it can maintain its current momentum on demand. The ceo says orders are strengthening in china, triggering expansion plans for the country. Nissan is also still struggling with the carlos ghosn a scandal. It claims that china is crucial. Dollar may still have some strength coming off its best week since early april. It has appeal for some investors. Lets discuss the outlook with ken peng. Ken, great to have you with us. So, the idea was that perhaps the dollar was on this multiyear downtrend but because of all the uncertainty is right now we have seen were seeing these bouts of strength. Aroundse just one offs uncertaintynd the or are we going to see sustain strength and what with the applications of that be . Ofok, i think this period uncertainty will probably last for a few months. And thats probably during this period, we will see more choppiness in the fx market. And the dollar may see more strength. We remain convinced over the longer run looking out 12 months from now the dollar index will be lower than where we are. Last time we spoke to you. Were adding stocks in hong kong and singapore does this change your perspective at all over global markets, especially the emerging economies where you are seeing Dollar Strength potentially pressure those markets . Havei think the, one, we uncertainties about the u. S. Election. Secondly, we have the uncertainty about resurgence in infections. We need to get over this before he can get back onto the recovery trade. When i talked about hong kong and singapore earlier, it was about the recovery trade. It has turned out decently. And so, i think beyond the election and this resurgence in infections, once we get the vaccine and medical treatments, then i think, you know, in the first half of next year you will see a clearer picture of recovery from this, this crisis. Ken, from now say until the end of the year, the taking a more defensive position when it comes to e. M. Last week was the worst across all Asset Classes since march. Ken yeah. I think it is probably worth being more defensive at this point. But i do think that the setbacks we are experiencing now will create better opportunities to enter. You know, even before this e. M. Assets were generally lagging. Cheaply valued. And so, i think this, this, the rebounding yen should not be a few months. Were still in the first half year of, of cyclical recovery. And when there should be more lag to run with the e. M. Trade. You say there is a good chance it will be china that is first in the vaccine raise, when it comes to the ability to scale up production and distribution. How do you invest on the . On that . Ken so, i think that, the overall china trade has been stronger. China has outperformed this year because it has gotten the covid under control the earliest. At least domestically, it has guess,d most, i successfully without seeing a major rebound in infections. And so, i think thats, you kn ow, if we have additional, if we have a vaccine coming out of china, i think you could, you could expect these to continue. So, retail sales, for example, is finally seen some uplift after being delayed several months compared to industrial rebound, for example. So, i think ultimately this is, it is not about race who gets the vaccine first. It is just the scale of the youine in activities that need to leave your home for is so massive that any good news on that front will be able to increase the value of these assets. Ken peng. At citi private bank. As Coronavirus Infections rise globally Health Authorities are pushing for new treatments before vaccine arrives. These include infusions. Inferon helps orchestrate the bodies antiviral defense. A new study shows that critical patients have increase levels of this. We asked a professor about the role of interferon. There is a lot of things that are going on now in terms of understanding what the virus is doing to the person that is getting infected and how that varies from person to person. Interferon as one of the important things. We know that the virus interfering is a compound your body makes in response to a virus infection and usually that can slow down how the virus replicates. Viruses, however, have evolved limit interferon and there are new studies coming out suggesting that a small percentage of people who have inherent problems in making interferon are actually much more susceptible to the severe viruse induced by the that causes covid19. That opens up a whole new area of trying to understand the interferon response and how that maybe one of the factors driving this different type of disease that people have after infection. When you look at some of the things we still do not whatstand, how much, percentage of the population is Walking Around that have covid19 but without symptoms . How we do try and track those . One of the biggest problems with tracking sars covid 2 has been the fact that, unlike other viruses that have emerged in the human population, this virus causes a significant amount of people to have infections that dont provide strong symptoms. Some estimates can be anywhere from 20 to 40 of infections can be asymptomatic, meaning you do not have the standard coughs and sneezes and fevers associated with an infection. But those people can be capable of transmitting the virus to others. They are these, for lack of a better term, silent carriers of the disease. So, it is great these people are have toing ill, but we realize they are still capable of transmitting the virus to others, and if you are not showing symptoms, you not be as ritual and in terms of your social distancing and wearing a mask and other things. It represents an important population that we need to target for the greater good, for the Public Health community in general, to make sure reduce the number of covid19 cases. Is it getting less deadly, or is this Wishful Thinking . It is an important question. We know that the medical community has gotten much much better in terms of treating the more severe cases of covid19. So, you are seeing hospitalization rates and death rates differ. Death rates are going down. Hospitalization rates are stabilizing. People are still getting sick but the medical care is now better and they are able to survive more. The virusont know if has changed tremendously, significantly during its time in humans. Europe and some studies that suggest perhaps it has gotten more transmissible, that there has not been a major change in the virus yet. Ao, what we really think is going on right now is that the medical community is that are at treating, were that are at identifying those cases. Trackedwe can actually the virus much more carefully as long as all of those things are put into place effectively to be able to minimize the severe effects of the infection. Do herd community, that if enough people get the virus it protects the population as a whole without a vaccine . This is been an important question that has come up in many forms this year. Herd immunity does exist. Herd immunity is what we refer to when a certain percentage of the population gets antibodies against the virus and therefore is protected from infection. And we know that if most people have antibodies, then even the ones that are not, that dont can be protected from infection because there are so few susceptible people for the virus to find. That concept does exist. How close we are to getting herd immunity is not very controversial. We are very far away from having 2. Rd immunity to sars covid speaking to our colleague francine lacqua. By school is supported michael bloomberg, founded by bloomberg philanthropy. A quick check of the markets are trading at the moment. Ofing u. S. Futures up. 25 , course, after we saw the market close in the u. S. News that stimulus talks had resumed. We are seeing japanese futures higher. The worst day in three weeks. Milk seeing its worst day since august 2019 as they said the resale or channel could be disrupted because of the lockdown in victoria. Che says thatpors orders are better than ever. We have an exclusive an exclusive interview with the companys china ceo. This is bloomberg. This is daybreak asia and im Karina Mitchell with the first word headlines. I u. S. Judge will decide whether to strike to present from on tiktok. Lawyers for tiktok argued banning the app now is senseless given that cell talks are underway. Tiktokinistration says poses quote an Immediate National security threat. Quote. The district judge plans to assure ruling by midnight d. C. Time, midday in asia. U. S. Is stepping up its fight with china, importing export curbs on top chipmaker smic. With a license needed by the Commerce Department saying smic risk of military and use. At is not been formally added to the administration socalled entity list meeting instructions are not as strict as those imposed on huawei. Paiddent has reportedly barely any taxes since entering the white house and none at all in the past 15 years. That is according to the New York Times that says it is because he reported losing more money than he made. Continuing ands on about it with the irs over the legitimacy over a 73 million tax refund he claimed. Mr. Trump dismissed the report. Totally fake news. Actually i pay tax. You will see that as soon as my tax returns. It is under audit and they have been under audit for a long time. The irs does not treat me well. A new poll suggests the new zealand Prime Minister Jacinda Ardern could govern without a Coalition Partner after the general election next month. The party enjoys a wide lead over the national party. She has been praised for her leadership amid the coronavirus pandemic and her response to last years mass shooting it christchurch. Global news 24 hours a day on air and at quicktake by bloomberg. On air and on quicktake by bloomberg. 2700 journalists and analysts in 120 countries underway in beijing as the Worlds Largest auto market is underway. This year features ev startups. Tom mackenzie joins us now. You are at the car show over the weekend in person. What was the mood among Auto Executives . Tom it was cautiously optimistic. The recovery in the auto market is happening here in china. Youve had two months were gains in sales have increased for two months after a twoyear slump. There is the sense the economic recovery is becoming more surefooted though there are questions as to how long it can be sustained. It is a reminder, you talked about that this was an in person meeting or event. The virus is well under control here in china. You have thousands of journalists on the ground at the event and hundreds of exhibitors. That is because of the virus it control the economy is able to pick up. It is the diversion picture. Is at the high a divergent picture, at the highend of the auto market youre seeing an improvement wheres the mass and is under pressure. And electric vehicles are doing substantially better. It is a question i put to a ceo, as to how he sees the outlook for his company for the end of this year and into 2021. There is diversion see because obviously china went first into the lockdown and the pandemic situation, starting at the end of january into february, but was the first country to get out of this lockdown situation, pandemic situation, while europe went into the lockdown china was opening again. This pretty much explains also how our cell situation was going through a very steep vshaped form. We had the impact in february. But starting from march into june, we had a very good recovery. And if we look to our auto intake order intake now it is better than before. Tom better than ever before, so what are sales looking like for the full year of 2020 . We are cautiously optimistic we at least reach the level of 2019, and theres potential to have another record year in 2020 four china. Tom control of the virus is part of the reason for that improvement. What are the other factors driving demand for highend luxury vehicles like porsche in china . In the general tendency, we can see that chinese customers are into right now buying individual mobility. So instead of going on public transport, they are looking into cars. That is why the car market in general is doing pretty good in china. We also see that especially our customers, who have been traveling a lot, spending lots of money and traveling, in hotels and restaurants outside the country, they are in china. And they have their funds now to invest into consumption. If you put these two things together, the private mobility thrust and you have the funds to upgrade your consumption, then potentially your choice falls onto porsche. Tom are you able to say whether you are seeing the momentum now will sustain itself through 2021 . We are doing a higher order intake then we are able to deliver cars at the moment. We are suffering a little from the lockdown from the german production, which happened between the middle of march and beginning of may. With the transfer time we are missing a little bit of supply at this time. So we are not able to on the spot deliver all the cars that our customers want to buy. But it is good and we are increasing our order bank and looking at this order bank, i would see cautiously because you do not know how things are happening in the next couple of months. We are about to go into enter. With the order bank we are having, i am very confident that at least for the First Quarter of next year, maybe the first half of next year, we will see a continuously good situation here in china. Tom it is also the biggest electric Vehicle Market in the world. What are the key challenges for a brand like porsche around electrification . We just introduced in the beginning of the year, the most exclusive versions of the turbo and turbo s with Retail Prices of around 2 million rmb, dedicated to a very clear shaped Customer Base that can afford such a kind of car. We did this also to show that driving a purely electrical porsche is driving a porsche. It is the most sporty us to offer you can have an an electrical car. Offer you can have an an electrical car. By the end of the year we will have a base model which offers porsche electric mobility to a broader range of customers. We do this in order in the steps in order to our customers and public, that driving a purely electrical porsche is no compromise on driving a porsche. Tom are you planning to deepen your cooperation with the chinese electric vehicle battery maker, catl . We are getting our batteries manufactured partly in europe or mainly in europe. From a group brand i know they have a strong cooperation with catl, and as we move forward in electrification with other lines, there is a potential to deepen also the cooperation to catl, and maybe other chinese battery manufacturers. Tom that was the porsche china ceo talking about the fact that demand in, china now is so strong that they are struggling to keep up in terms of supply. Also saying he is seeing wealthy clients who like the porsche models, that they are starting to spend more on his kind of vehicles because they are traveling abroad last, so they have the additional cash to play with. He is optimistic, cautiously optimistic at this point. Shery and we have heard tesla planning to make a 25,000 model in the next three years. How to its rivals in china feel about that . Tom this was a big part of the conversation. Because there is an assumption among some analysts that if youre going to be producing as it tesla at 25,000 on model, where you going to do that . Potentially in china where labor costs are slightly lower and they have their factory in shanghai. So that was part of the conversation amongst executives. We also heard from elon musk he plans at some point to aim for a Million Units a year to be produced out of china. What does that mean for the competition here . That was the key discussion point. The executives we spoke to again, pointed to what they said was the education process that tesla is helping to create here in china, to move people away from gasoline powered vehicles, towards electric vehicles, and building out the supply chains as well. So, generally very positive about teslas footprint in the chinese market. But longerterm, possibly in the next 510 years, some of the small startups say they would be, they hope, snapping at teslas heels. Shery our markets quaker Tom Mackenzie from beijing. More on chinas auto sector and the future of evs in the next hour of bloomberg daybreak asia. An alert on the bloomberg now, toshibas chip unit has just postponed its tokyo ipo. Saying they will reexamine the best time for listing. This company was a memory chip maker spun out of toshiba and 2018, and they were supposed to have their ipo today on monday. There were supposed to set their final pricing monday, but sources are telling bloomberg that chipmaker decided to cancel the current ipo because of escalating Political Tensions between the u. S. And china, at how that could put pressure on their profits. Now this toshiba chip unit saying they will postpone their tokyo ipo citing coronavirus and Market Trends for the ipo delay. Next, can the Company Behind k pop superstar bts replicate their success the market . We look at south koreas largest listing in years. This is bloomberg. Haidi we are counting down to asias first major market open this morning. Korea futures take a look at how the future session close this morning. Going into the monday morning session and uptick, 1 . We expect asia attack to keep the momentum we saw in the u. S. Session friday Asia Technology to keep the momentum we saw in the u. S. Session friday. Behind that south korea boy ben bts is looking to dust oil band ets is looking to raise funds. Liquidity flowing into the korean ipo market. Daniel, great to see you. Does the massive amount of liquidity an unusual policy settings we are seeing skew the market . Yes. We are seeing a huge amount of inflow to this ipo market at this current time. If you look at since june of this year, major ipos started to happen. Listedsk biofarma got and also, now subscription will s bigne in october for bts hit. In terms of money inflows it is incredible, if you look at the first one, sk biofarma, it received 30 trillion yuan and games 80. 5 trillions and now theyre talking about big hit almost 100 90 billion,almost clearly inflows are flowing in because globally liquidity is strong. And a create liquidity is also strong so this is affecting positivity for this big ipo in the Entertainment Industry. Haidi what this year of mount of retail interest. With the sheer amount of retail interest. Corrections from the peak ipo. Clearly one that is of the major issues at this time. In terms of the industry wide, these are great, because mostly are theostly these industry in korea. And people are interested to invest in the Entertainment Industry. As you know the oscar nomination movie, parasite, clearly increased interest toward koreas entertainment industries. And that bts wedding the billboard winning the bill Winning Office bts billboard box office. The korean Entertainment Industry is competitive and that is crating interest for to mess to get foreign investors. Forhe same time interest domestic and foreign investors. At the same time too much liquidity is skewed toward certain industries. If you look at sk biofarma, it corrected from the peak till now 40 . And the level of the correction was faster this time for kakao games. Will create liquidity into the stock and resulting in a massive rise but after that might be a major correction. The competition to get one share is 1000 1 probably for this time. So, yes you are right. And too much liquidity, resulting in an overall market correction, and if you look at the korean market it corrected techr the kospi, and kos is down 12 for one month. Are you expecting regulators to step in . I do not think that will be the case. The government keeps talking about how they are trying to boost to the new deals, etc. Having the liquidity going into ipovidual stocks, after the a lot of money will be left into the system. If you looked up the customer deposit of korea, it reached as high as around 6000,000,000,001 plus trillion won plus and eventually it will go into a size 80 trillion or 90 trillion. It resulted into a positive direction overall, because as you know, the korean government is trying to focus on new deals and launching these growth sector index. Pdig. All of this is resulting into the good custom inflow into the equity market and that is what government wants, and i do not think they will come up with some kind of regulation for this ipo. Shery give us your take about the health of the south korean market. Whether its valuation or Earnings Growth, corporate governance, and where you see the market right now . It is highly positive, i must say. If you look at the coast the index itself, from the bottom of march kospi index from the bottom of march, that rose 70 before the correction. Ech, 150 , kos t of other the highest indexes across the world and it corrected 12 for the correction seems to be reasonable. If you look at it overall earnings wise this is astonishing. F you look at 2020, kospi earnings are expected to go up 8 and the kostech physic specter to go up 22 . For next year youre looking at 27 Earnings Growth for kospi, and the kostech another 22 . The are clearly fundamental reasons why the korean market is doing so well, and the creator the correction i came is relatively less than any other market. The correction that came is less than any other market relatively. Overall, the fundamental is supporting this kind of shelf price movement. Plus you are seeing a huge liquidity into the acree markets. So we will see dust into the equity markets. So you will see the korean market going up further to the end of their. The end of that year. Says itrade minister must. Votto lysed and reformed stay relevant revitalized and reformed to stay relevant. Yoo is one of three women running for director. Have startedents to address the normative gaps in the wto with new roles. First if im chosen as a director general, i would Work Together with members to translate this achievements in the bilateral case to multilateral trading agreements and multilateral trading systems, so we could also upgrade the ruble at the multilateral trading organizations. Also we really need to revitalize negotiating function because the lack of progress at members toght lead result in bilateral is him or unilateralism. New u. S. Restrictions on huawei or other Chinese Companies have affected south Korean Companies like samsung or huynix. So is it only fair to expect south korea or others to readjust supply chains away from china . This issue is still ongoing, so right now we still have to see how it is actually in realities. Toould say that in regard the National Security issues, some of the roles and International Organizations are due for a securityrelated export and technology controls. Involved in some trade related issues. There is some interface between our wto and other International Organizations. Still this issue needs to be further discussed at the wto because this is a very emerging issue this year, so it needs to be further discussed to find a way forward. The wto has never had a female leader and its to decades of existence. How important is female representation in International Organizations like the wto . First i would say that in selecting the next director general, the merits and capabilities of a person, not ones gender, should be the deciding factor. Now we have very qualified female candidates running for the position. So i would just say that it is led time for the wto to be by a qualified, capable woman. Having a female leader and director general at the wto could help foster inclusive, diverse, and resilient work place culture, and this could also help better address and promote emerging trade related issues, such is womens economic empowerment, which could also contribute to sustainable and inclusive government. You are the first female trade administrator in south korea. Tell us about your experiences, the challenges you face, rising up the ranks and a maledominated society . [laughter] well, some might say that, you know, it might be easier for a woman to prove themselves because it is easy to be recognized by others. But i would just say that sometimes i have been judged against harsher criteria. Hard,so work hard, work to prove myself against the bias and prejudice of society. And also i have been always struggling between my family obligation and work, so i do not think there a perfect balance between work and family. Situation, ie think i can better understand the importance of fostering inclusive and diverse workplace culture. So that women or any minorities could thrive and fulfill their potential in the organization. South korean trade minister yoo. Or to come on bloomberg daybreak asia. This is bloomberg. A check of the latest business flash headlines. A new leader to push through one of the largest restructuring programs and its history at adjournment retail bank. A transition of the first of january next year. And yes bank is seeking to reassure depositors after indias bank is seeking to reassure stakeholders. And banked liquidity affairs will be managed in consultation with the board. The market opens coming up in asia. This is bloomberg. Shery welcome to bloomberg daybreak asia. From bloomberg World Headquarters in the art. Im shery ahn. Haidi i am haidi stroudwatts in sydney. Asia markets have just open. U. S. Futures rise. Investors wings strengthen china against rising virus infections around the world. China u. S. Tensions turn another page as tiktok awaits a court ruling on a potential bad why slaps curbs on the top chipmaker over military ties. And trump lashes out against fake news as a new report says he lost millions and pay barely any tax in recent years. Documents seem to show his businesses are struggling. Korea, andn, south austria coming online. A quick check of markets opening. Take a look at the nikkei and ground withgaining the nikkei gaining. 8 , utilities and tech stocks leading. Japanese yen unchanged after a against the u. S. Dollar as we see greenback strength. Doj thirdquarter report comes out this week so watch for that. 9 , as the korean won remains under a little bit of pressure. This after and have become the topperforming emergingmarket currency over the chinese yuan over the past month. We get data out of south korea on tuesday and trade data on thursday. Consumer confidence in south those number, slipping for the first time in five months. Haidi and on the ground when it comes to macro coat date to guidance Macro Economic Data Guidance in asia, they gets busier the second half of the week. Andook ahead to china pmi rate decisions out of india and the philippines. At the moment a flat to slightly negative start to trading despite encouraging numbers with the number of infections down to five in victoria and the lifting of the curfew. We are seeing resilience to the aussie dollar. Quiet on the currency front to start this monday session. The 10 year yield is holding steady. New zealand notably pairing steeper early declines of 1 we are still seeing downward pressure on qes cox kiwi ,tocks after news coming out over the lack of shoppers from china. Outperforming International Markets for a decade, the trend do for a change. Etf the ceo of an etf provider on the line. Theme of u. S. The exceptionalism and have been looking at the dollar weakness, the strength of the recovery coming from china and asia, potentially driving a rotation more into asia and emergingmarket. Do you see this reversion do five change . Do for a change . Is time forlieve it what we call an intermarket reversion. , u. S. He past 50 years markets have exceeded nonus years before5 reverting and having nonus markets dominate for comparable period. Now we have a 12 year. Two to three times longer and we believe it is due for a correction. We also look at valuation. Nonus small caps how to pricetoearnings ratio of 15, and u. S. Small caps had a pe greater than 47. Relativen the valuation for nonus small caps. U. S. Ver the last 12 years, largecap Technology Stocks provided 500 return compared to 25 for the shanghai index. And 6 for the ftse 100, for example. Sectors,e about the any individual names you like in the nonus small caps . In the nonus we like creeper therapeutics, a bear based in switzerland, a gene Editing Company founded by a charpentier,r, dr. Using Crisper Technology to find dna sequences and the genomics of cells that can be easily that wayith crisper, they can treat and prevent serious human diseases. It is a very specific area we believe is Getting Started and crisper therapeutics is the First Company to use this technology in a Clinical Trial and as of now, for that reason, they have no direct competitors. When you look at all of those firms you like especially outside the u. S. , nec of the u. S. Dollar strength these days because of risk off moves, how do you assess your calls . Youre right. A sliding dollar for a the time now and we see erosion of u. S. Currency will stimulate nonus investment. We would be exacerbating returns in upcoming president ial election. Therdless of who wins, likelihood of clinical tension following november 3 is high Political Tension following november 3 is high. Investors would be wise to consider safe alternatives in the Fourth Quarter. In the last two months we saw 16 billion flowing into nonus reverses ahich negative outflow through 2020 and we believe this will continue to rise in future months. Shery how much will go into china . We know they have a oneweek holiday coming up, consumption a big focus. Consumer stocks have been the biggest gainers on that csi 300 in the past quarter. So the issue is chinese is that although covid was originally discovered in china, the recovery has been much stronger than in other parts of the world, as you know. So this has enabled the country to focus more quickly on restoring its economy and positioning itself as a leader in the global market. 300 is second only to the u. S. Nasdaq for strong performance. We believe those many extraordinary highgrowth companies. China is creating a new for theire each week, fastest creation of anyplace in the world and we realize the country has many geopolitical issues. They have to contend with them in the months and years ahead. U. S. Markets have exceeded the performance of Chinese Markets over the past 12 years. We are now bullish it is time for a reversal. Haidi eva, as we count down to the multiple deadlines for the tiktok ban and the deal, there are so much uncertainty, what do you see as the market implications . Or is this more of a political story that may fade after november . So, yes you are right. The deadline is imminent. And it is unclear how it will unfold. In case it happens, we believe we may see a negative response in the markets. However, to be clear, we do not believe that this negative reaction we might see it will be because of the [indiscernible] we think tiktok is a private Chinese Company with limited influence in the market, especially when it comes to the u. S. But rather if the market declines the new represents anticipate actions and reactions. In betweentensions china and the u. S. We witnessed skirmishes over houston and Hong Kong Government officials. Hotly contested election and a [indiscernible] will unfold. , the great having you on coo of entrepreneur shares. Lets get the first word headlines with Karina Mitchell. President trump reportedly paid any taxes since entering the white house. And none at all in 10 of the past 15 years, according to the New York Times, which said it is because he reported losing more money than he made. The president is continuing a decadelong audit data with the irs over the legitimacy of a 73 Million Dollar tax refund he has claimed. Mr. Trump dismissed the report. Chinas economic rebound is continuing with Industrial Company profits growing for fourth straight month. Data show a rise of 19 in august following a similar name in july. Profits year to date are 4 lower than 12 months ago. The Statistics Bureau says the rise is due to sustained recovery in manufacturing and demand, as well as lower business costs. The australian budget deficit is set to widen from recent estimates. It is seen being mitigated by the resilient price of iron ore. Delights is a cash deficit will be the equivalent of one had 40 million u. S. Dollars in 12 months through june the threeent of 140b usd, next year. Says travel bubble with new zealand could open by year end as infection rates above countries remain low. Authorities relaxed curbs in melbourne ahead of schedule, and New South Wales reported no new infections in the past when he for hours. Here in the u. S. In the past 24 hours. Here in the u. S. , global cases near 33 million. Deaths are about the top one million. Global news 24 hours a day on air and at quicktake by bloomberg. Ursula von der leyen global news 24 hours a day on tv and quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Ticks down tock President Trumps tiktok deadline as we await a court decision, to ban is set to go into effect in a few hours time. Plus the International Auto show is underway beijing as carmakers push for a bigger share of chinas market. Jail warren capital tells us the best place to win who is best placed jl warren tells us who is best placed to win that raised. This is bloomberg. Shery breaking news. The much awaited decision by a federal judge on tiktok. The band has been temporarily blocked by the federal judge. President trumps band would have removed tiktok from app store is run by apple and google android. Tiktok is used by 19 million americans and right now we are hearing the federal judge put a temporary block on President Trump;s down, as the deadline ban, is the deadline was the night teacher time, midday in hong kong. Midnightadline was eastern time and midday and hong kong. Stephen engle is following developments. We are hearing the judge has blocked President Trump ban on tiktok. Right. Bytedance tiktok applied for preliminary injunction which would have taken place four hours from now, the ban. The Trump Administration refused to give a postponement of the ban and was going for a full on effective ban as of midnight tonight. The District Court judge had a preliminary hearing and he has given his decision, carl nichols. He has not going to get the reasoning for his decision until later. But we found out the preliminary injunction has been granted. The tiktok lawyer told a federal judge, the impending down ban, due to take place was irrational, given that the parent is in talks to strike the deal. That the president himself demanded. That it would be no different from the government locking the doors to a public forum rubbing off a town square, interesting the lawyer from tiktok use the technology, townsquare and public forum. Those are almost the exact words another District Court judge in california use last week and her really against the ban, and tencentsf . 10 of wechat. The u. S. Government most confident because saturday there was a separate ruling by a pennsylvania federal judge, whonst three tiktok users, claimed their livelihoods are based on doing videos for would, and that the ban have impinged on their First Amendment rights. Stone,dge wendy biddle brushed aside the first to mimic claims, and said it would not First Amendment claims and said the ban would not clause would not cause irreparable injury to users. The headlines now on the bloomberg terminal. Federal judge carl nichols has temporarily rented this request for the ban to be halted for now. And, steve, we know the Justice Department has said largely this is irrational because there is o ideal on the table made by tiktok. Arethe data concerns immediate and that concerns are real. Does this mean we are likely to see the doj appeal . I would think so. You are leading to the comments from the Justice Department lawyer, arguing that concern is about Data Security. It is not Data Security issues yesterday or today or in the future, it is all of the above. Claim,ed that ban, they the department of Justice Needs the banner asap, right now. They argued because of Data Security concerns they cannot extend the deadline for the ban. However, tiktok and i dance bytedance, and i would assume those who are striking a deal with bytedance like oracle and walmart, would want a little more time than the extension trump gave them of one week to do this deal. Haidi our chief north asia correspondent Stephen Engle with the very latest. We are hearing that trumps ban on tiktok has been temporarily bound by a federal judge. A new report claiming that the president has paid scarcely any taxes and years. The New York Times sing as hundreds of million in debt coming due. Saying that he has hundreds of millions of dollars in debt coming due. This is bloomberg. President trump reportedly paid 750 in 2016 and 2017. A New York Times investigation revealed aliens of dollars of losses from golf courses and hundreds of millions of dollars in debt coming due in the next couple of years. Trump earlier dismissed the report. Totally fake news and actually i pay tax and you will see that as soon as my tax returns they have been under audit for a long time, the iris does not treat me well. The irs does not treat me well. Haidi lets get the latest from washington correspondent kevin cirilli. Is there a sense of this being not new news . That it is a welcome distraction because it is not focusing on the pandemic . Or his handling of covid19 . I think the president s forcefully pushing back against the near times character session of his tax returns. The president has said for some years he is wanting the middle class and other lower middle income taxes visuals to be able to qualify for the same type of tax breaks and tax incentives he was able to qualify for. He is going to make the argument at the debate in cleveland tuesday night new york time, that he and republicans were in favor of lowering the taxes. But this is also an opportunity for democratic president ial nominee joe biden, and democrats to argue that the wealthy and wellconnected, have been able to take advantage of a tax system that has quite frankly let down and excluded the other middle class and lower middle class voters. Either way it is a polarizing issue. It is an ideological issue. It is going to be continued into follow along political fault lines we have been seeing. Kevin, where are we in the polls now as we head into the first president ial debate . We heard the president ial the president saying he will be counting ballots forever after november 3 . From a national standpoint, biden is ahead. If you look at battleground states, arizona, florida, pennsylvania, wisconsin, President Trump and Vice President biden are neck and neck. However in all of those battlegrounds it appears biden is ahead by single digits. But that the president is within striking distance. As we head into the debate the stakes have never been higher for President Trump. In terms of crosstabs on pauls, heas received polls, has received high disapproval ratings for his handling of the pandemic. He remains having high marks on the economy. Most voters rank the pandemic about the economy but should that change that would be a Welcome Change for the president and his reelection efforts. Haidi how much of a performance does joe need to put on . What are the main issues you think will be on the table, and used as an attack from both sides . This is a 90 minute debate. There will not be any breaks. Four biden, expect to hear him really take on the president for his handling of the pandemic, as well as for his divisive rhetoric. For trump expect a about lowering taxes, the economy and the recovery and also expect to hear about the Supreme Court. The president yesterday nominating a judge to the Supreme Court who would replace the position of the late Justice Ruth Bader ginsburg. Republicans hope for a speedy confirmation process. November 10 there is a health care rolling. The Affordable Care act is also an issue i estimate will come up in the first debate. Lets head to tokyo for a quick check of [indiscernible] under pressure. Toshibas chip affiliate is delaying its ipo. It is down 4 at the moment. Holding saying they will reexamine the best time for their listing, citing coronavirus and Market Trends for the ipo delay. 6 , paring back earlier declines. Denying the report that it is mulling a ¥200 billion in ek. Ic offering, reported by nikkei. Haidi lets get a check of the latest business flash headlines. A two down and wellington after issuing a revenue warning, the stock has fallen 15 in intraday trading. Shery sales in australia will be below forecast. 2021 revenue projection is 1. 9 billion new zealand lower than analyst expectations. Nissan expects to return to profit next year if it can maintain current amendment momentum in demand. The ceo says orders are trying the ceo strength says orders are strengthening. It sees china as a crucial market. Its tie up with an automaker make it so its tie up with a chinese auto maker makes it a leading player on the mainland. U. S. Federal aid for aviation to be extended when the Program Expires october 1. The ceo says american will continue urging congress to approve support as part of the wider stainless package, saying the looming deadline will spur action. Wider stimulus package. Laughs would hamper u. S. Airlines. Next, the latest bloomberg data. 2 signs chinas economic rebound is leveling off. Details ahead. This is bloomberg. 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. This is daybreak asia. I am Karina Mitchell. We begin with our top story. President threatened ban on tiktok has been blocked by a federal judge. Bytedance applied for an injunction, arguing the ban was irrational given talks about a sale are still on the table. To tiktok band was supposed come into effect midnight. The Administration Says tiktok poses an Immediate National security threat. The u. S. Is stepping up its fight with china. American Companies Need a license to revive certain products with the Commerce Department saying they present an unacceptable risk of military enduse. They have not been added to the administrations socalled entity list which means the curbs are not as severe as those imposed on huawei. A new poll suggests the new zealand Prime Minister could govern without the need for a Coalition Partner after next months general election. She says her labour party is leaking some support but still enjoys a wide lead over the national party. She has been praised for her leadership amid the coronavirus pandemic and her response to last years mass shooting in christchurch. Summitoming g20 leaders to be hosted by saudi arabia will now be a virtual event. This years agenda concentrates on the fallout from the coronavirus pandemic, focusing on protecting lives and restoring growth. The kingdom had wanted a traditional facetoface summit as it seeks to revive its image following the killing of Jamal Khashoggi istanbul. Global news, 24 hours a day, on air and on Bloomberg Quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Lets take a look at how markets are trading in the early part of the session on monday, trying to hang onto those gains. We saw in the u. S. Recovery session on friday, this is where we are seeing the nikkei 225, up by. 5 . We are watching the yen trading at the lowest in two weeks. Toshiba, a stock to watch in japan after its chip affiliate delays its ipo. Toshiba down by 8 in the early part of the session and also watching automakers in asia after nissan said they could return to profit in 2021 if momentum is maintained, particularly in china. The kospi is up by. 7 and we are watching ipo fever as liquidity really overwhelms command and the s p asx 200 in australia, downside of just about. 25 , this despite a better picture when it comes to the virus numbers out of victoria. A curfew being lifted and potentially a further easing of restrictions ahead of schedule. In new zealand, we are seeing downside of. 7 , but much very much off the earlier loans, drank down by the index. They see firsthalf revenue purged by the lack ofs arrogant purchasing or revenue from chinese shoppers. Switching over to take a look at the oil patch, oil is slipping, holding a 40 a barrel. There are signals the virus restrictions, the second wave, will be slowing economic recovery. They increase supply as well. We are wanting the dollar as always. A little bit of weakness there. But not much of a move. Futures for the s p also picking up a bit, sharing. Shery shery. Shery investors will be watching ecodata. Early numbers show the rebound may be losing some momentum. Kathleen hays is here with the latest. A bit of a mixed picture. A big plus in chinas latest industrial profits report and a big minus in early indicators bloomberg has compiled so what is our team seeing right now . Reallyn well, its a interesting index that Bloomberg Economics has developed. Our reporting team as well. Lets start on the industrial profits. If you are looking for signs that chinas rebound is continuing, looking good, look no more look no farther. Up 19 ial profits were on the month in august. That follows july, 19. 6 increase. If you look at the first statements of the year, to date, its still down 4. 4 from a year earlier. Still a pretty good number. It was due to continue recovery production and demand. The fear is that if exports rose or people start spending money, this could mean even this good reading slows down. In terms of the real economic indicators, looks like the rebound may be losing some pace. Three of the indicators i want to call to your attention if you look at this list are new home sales. They slowed in chinas four biggest cities. Small Business Confidence edged lower after rising for six weeks. Major onshore stocks have weakened. A plus in this list would be south koreas first 20 day exports. They actually rose. They have not that since april. Some other things on the list. Copper crisis, car sales, Bloomberg Economics is saying this is something that may be moving momentum. Thats a lot of emphasis this week on the china pmi. Manufacturing is expected to ease a little bit to 50. 7. To 54. 6. S down 50 4. 6 is a really strong member. Aboveat least it is still 50. If we see the manufacturing pmis weaker, especially if manufacturing comes in lower than that, that will cause more concern about what is going on in china. Haidi the Central Banks of india and the philippines meeting this week. Neither one is expected to cut rates because its really difficult with the inflationary environment that we are seeing. Kathleen it is certainly difficult for india. It has been a problem in the philippines as well. You are right. The virus has hit so many countries so hard. If you look at this chart, you can understand why the governor of the reserve bank of india and his team are going to say no, we have to hold a key rate study. 2 toion has been running 6 for five months in a row. It may be driven by food prices. That is where it is now. Top line, downhe nearly 24 in a quarter. This is not so unusual when you look at numbers around the world. This is crying out for some more help. Bloomberg economics are saying we will see inflation. 3. 5 percent annualized. At the december meeting, that is when the rbis will start cutting its rate. That is still down the road. Ratesre going to hold the steady as well. Now. Have done enough for they signaled a prudent pause to let 175 basis points in rate cuts work their way through the economy. Soft credit demand, theres lots of liquidity in the system. The philippines has provided that through many different measures including reducing the reserve requirements. The demand is not there. These Movement Restrictions on people now. Economic uncertainty. ,f we do anything from the bsp nonmonetary measures. I think with both cases, both meetings, both governors pay or what did they say about where we are heading, and people get a sense if needed. Hays. Hleen Goldman Sachs chief economist there are strong cases to keep both the u. S. Fiscal and Monetary Policy accommodative. It halved its National Growth prospects. She spoke to bloomberg about the revision and what it would take for the outlook to brighten. Outlook, weof the did take down the Fourth Quarter , and because of the reduced likelihood and low likelihood of a fiscal deal. 6 quarter on quarter annualized. 3 quote unquote annualized. In fact, a few weeks ago, we had considered a larger downward revision in the event of nodeal between democrats and republicans, but we ended up with a somewhat more moderate downward revision in light of the fact that the end of the 600 per week payment to unemployed workers at the end of july does not seem to have had as large an impact on spending as we had thought. Seems like the consumer is Still Holding up reasonably well. A downward revision was necessary. If you get to 2021, and we have another fiscal easing under President Biden with a Senate Majority or under president ourp, we would upgrade numbers, probably. We have not been building in a significant amount of stimulus from here. We think there are other reasons why the economy may do pretty well in 2021, related to covid developments and potentially a vaccine. We are not building for the stimulus at the moment. Your initial claim came up with mortgage equity withdrawal and looking at the behavior of consumers in the housing boom of 2004, 2006, as well. What is the behavior of consumers you at Goldman Sachs see right now . Jan the main constraint on consumers is really the development of the pandemic. Thats the reason why the economy turns down so sharply in march and april, and to the these that we can unwind losses, i think its going to reflect improvement in our ability to cope with the disease to reduce infection risk and ultimately to come up with a vaccine. That is at the top of the list for me. Of course, income plays an Important Role as well and to shore uprograms incomes during the worst part of the pandemic i think were extremely helpful. For me, the most amazing statistic of this entire period has been the fact that the Second Quarter saw the biggest gdp goingr in real back at least to 1947 but also the biggest increase ever in real household disposable in come. That was key i think in turning around the downturn of march and april in subsequent months. Of course, this story is not over yet. Right now, we have seen a setback. What happens to fiscal policies as we go into 2021 . It will be important. That is the issue. He talked to us about a duration mismatch. This pandemic go on for the threemonth bandaid. From your perspective, we managed to offset that income crisis, that income shock, of six months ago. You think the nature of the slowdown changes if the appetite to apply another fiscal bandaid is not there . There is a very strong case for keeping policies both on the monetary side and on the fiscal side very accommodative. Im generally on the more optimistic side of the debate as far as the Economic Outlook is concerned these days and i do think we are making significant headway, but at the same time, we are still clearly far away from full employment. The pandemic is definitely not behind us. The economy still needs a lot of report. Support. Im comforted by the Central Banks willingness to continue to provide support. I think theres a very strong consensus there that the economy is needed. On the fiscal side of course, its a more political decision, especially in a hyper politicized environment as what we have currently, given the impending election. Its much easier to see a setback, and clearly, we have to have seen a setback. Goldman sachs chief economist jan matzius. Coming up next, beijing auto show putting chinas ev future in the spotlight. We will speak with the capital founder and ceo about her outlook on the sector. This is bloomberg. Was goinguation through a vshaped form. That there wasay people kind of holding back. We are confident. Should be more than 10 . The second half will be a lot stronger than the first half in china and we are heading towards the golden season of auto sales. Maybe something to do. Consumption. The processing power. Get to use it. That may be the reason. Chinese customers are into right now buying individual mobility. They are looking into cars and that is why the car market i think in general is doing pretty good in china. Those were executives from the Auto Industry speaking to bloomberg tv at the beijing auto show. Lets discuss the outlook for chinas auto sector with the founder and ceo of equity research. Great to have you with us. Thank you so much for joining us. Just as we saw, this would be the only major auto show happening in the world right now. People actually out and about and showing cards at this huge event. China is the first out of this pandemic. How realistic is it for these carmakers to pin their hopes on the chinese recovery . Consumerk Discretionary Spending has been arriving, normalizing, recovering, and it has been brilliant again as we saw in, you know, discretionary luxury goods and cosmetics, etc. , and the car market has been tough for the first half of the year, plus starting in july, we started to see growth again. Theres apparently divergence in the market. The ultra high end Luxury Products such as everyone talking about maserati and rollsroyce in the higher end of mercedesbenz at the beijing trade show, this sector is largely impacted coming out of the covid health crisis. The other spectrum, the well priced economy, selling into china,ina, and rural into the villages and countryside, those will be in high demand as well with a group of firstcome buyers starting to look at automobiles as a way of transportation. We see lots of divergence. Overall, the market in china is approaching very high penetration. Need to focus technology, innovation, and differentiated products to capture consumers interest. Segment, ev, as a will outperform the auto market. It still plays a big role in mass adoptions. Shery which takes me to my question about the governments strategy when it comes to the ev market, talking about divergence, is one of the most fragmented out there. Yes, it is. Theres lots of ev startups. They are wellfunded. Tesla, obviously, with the made three, had most of the market share. This year so far, over the past eight months, tessa captured probably close to 20 of the tradingmarket with byd second, capturing 15 to 16 . Hasthen you have which smaller percentage of the share, but they are trying to, you know, capture some segments with differentiated services and some functionalities or that tessa teslas lacks to perhaps lacks to the chinese market. The government is doing its part a Service Battery as business model, trying to give some leverage to the chinese homegrown ev oems to try and compete against tesla. Did they become National Champions in that respect in terms of the support they would get from the governments . Junheng in a way, i think. Ultimately, we need to see the breakthrough in battery technology. The knowledge needs to improve significantly the cost needs to come down a lot so that we can have a nice functional car renminbi,und 250,000 which is the equivalent of 30,000 u. S. Dollars, to really get into the mass market. That is what everyone is trying to do. A product ord as battery as used by a service, its just a means to an end. Joining us. Ng li tries to revive confidence amid fears over debts and defaults. This is bloomberg. Get a quick check of the lire because it has now fallen to the lowest level on record, plunging more than 2 and touching a record low of 7. 82 46. This of course as we have seen the lira rally with that surprise rate hike with the cash rate being raised to 10. 25 . The Central Bank Going against president erdogans wanting a weaker, easy Monetary Policy. The Turkish Central Bank tightened Monetary Policy even after the surprise rate hike but we have not seen that much of an impact on the lira, which is now at record lows. Haidi. Grand has, china ever been tracking the story, attempting to revive confidence in its finances amid fears of a cash crunch. The worlds most embedded its operations are stable following reports it had warned beijing of potential cascading defaults. Our credit reporter joins us now. How have the bonds impacted the broader credit market . We saw evergrande bonds onshore and offshore for thursday and extend significant losses on friday. Onshore bonds hit record lows around 65 to 71. As much as the most since march and april since the pandemic induced selloff across all global credit markets. During friday trading, it had the worst performance. This weigh heavily on asian and china offshore and dollar bonds more broadly, particularly. Ony were blown out friday. Evergrande is often taken as a bellwether for the china property market. We saw quite a significant fallout for chinese developer bonds on the friday, too. They make up a significant chunk of asias junkbond market. Some down as much as two cents or three cents on friday. Shery what is the opportunity here for investors . Rebecca the bonds are certainly still under pressure, but there are some Research Analysts suggesting we have seen an overcorrection and that there is a buying opportunity here. Analysts from jp morgan, deutsche bank, have said valuations are fairly attractive now. Although even those who are seeing opportunities to buy saying we stick to the front end. The majority of folks do not think evergrande will be allowed to fail in a big way. They see signs of government to the as they listen extended bond payment deadline. Its important to understand that more broadly, beijing has been looking to curve excessive borrowing. We are seeing signs of policy tightening. Like chinars who property bonds, even for the broader sector, there are signs that we have to be a little bit more selective now. Does it look like evergrande bonds will continue to come under pressure today, throughout the course of the week . Rebecca it will be fascinating onshore andoth the offshore evergrande bonds and the broader china highyield and asia dollar bond market. Friday was interesting. In the morning, we saw the market open fairly stable and quite quiet. We saw a very sudden turn where investment started selling. We are keeping an eye out and it will be a shorter week this week with the october holiday so trading is likely to be focused on the beginning of the week. Thank you. Coming up, sentiment souring. Volatility is on the rise. We will discuss with our guests. The china open is next. This is bloomberg. It is not 00 a. M. It is 9 00 a. M. I am yvonne man. Our top stories. Tiktok wins the first round of its battle with the white house. Owner bytedance argues his move would be irrational. Tom the president is