Transcripts For BLOOMBERG Bloomberg Markets Asia 20240712

From theto the concern economic hit caused by the pandemic. We have job losses here with a more modest hit in this part of the world. Else is going on out there and quickly looking at the dollar index is. We do have the dollar steady at the moment. We had the surge in the dollar seeing a little bit of a spike taking place. Being seen as a haven currency. The yen, 104. 49. New york crude, what we have here is a plunge taking place overnight. Nearly 5 . They recovered a little bit from that. 8 10 of 1 . 67 a barrel for wti. Gold the steady, but not really acting as a safe haven. We have breaking news, the dow jones reporting that it may close to buying nc, according to people and what would be the second Big Semiconductor tie up this week as the industry rapidly consolidates this deal. It could be worth 10 billion. Thats according to the dow jones. Dow jones reporting marvell could be close to buying inphi later this week. Lets get our first word headlines. Not european leaders are imposing tough new virus curves as infections surge and social restrictions failed. Germany and france are going into National Lockdown, again. The u. K. Is considering one. Italy and greece report record numbers. The top u. S. Infectious expert, Anthony Fauci, is warning a vaccine will not be available until january at the earliest or its air asia is reported to be under investigation in malaysia. A 17 million loan from the bank. The Anticorruption Commission is excepting any possible violations after news outlets that they had ordered an independent audit. At hows are looking funds would disperse over installations of a new state government. Tech is being worn that its Legal Protection overt user content could be removed amid accusations of abusing power. Twitter, facebook and google were grilled at a congressional hearing with republicans demanding who put them in charge for what can be posted. Some immunity and content, but have angered lawmakers by limiting some recent stories. At. China relations looks the Justice Department charging a Chinese People for alleged operation on american soil aimed at dissidents. The doj says the agents were carrying out whats known as operation which is beijings effort to track down fugitives and bring them back to the mainland for trial. The first major storm of the year has crossed the u. S. Gulf coast. Hurricane zeta is a category two storm. Louisiana, new orleans, and may be the most powerful storm to hit the city since katrina in 2005. The storm has sustained winds of 110 mph. It is expected to hit new orleans with the strongest gusts in 15 years. Initial damage forecasts are at 5 billion. Those were the headlines. Back to the markets. We are discussing the dollar surge. We have gotten that over with. And advancing treasury will change in keeping 10 year around 0. 70 . Just 0. 78 . 10 year around 0. 78 . What are your forecasts for what you cover . Having me. U for i think we are now just having reaction to the fact that this new second wave in europe is certainly promoting some risk aversion. Naturally the dollar tends to get stronger in this moment. But we still think that mediumterm, particularly when we look towards next year, we think basin area of the global economy, particularly china doing well and looking for emerging markets should be ok. Broadly speaking, in our view we will get weaker emerging markets. The big event is the our foot in politics, u. S. Election. Its just days away. Tell us about how emerging markets investor should be positioning themselves ahead of it . Of all, we think its better to avoid any extreme position for two reasons. One, we know there is a big element of uncertainty in any case. We knew the hard weight in 2016. The second element is that investors should keep in mind that for the medium and longterm, a lot of things will remain the same. For example, the tension between u. S. And china, that is particularly important for asia, is not something that would remain in place regardless of the result of u. S. Election. Touchinghat is the point. Rishaad absolutely. And a lot of it is down to what has been going on with regards to this trade war and other frictions taking place between beijing and washington. But that wont go away no matter who wins, isnt that true . Julio true. Lets put it this way. Reaction in some the nearterm for the election. I thinkarly on the fx, what is worth highlighting is the buyers in the market is for a victory biden. There is also this perception that biden will be more diplomatic and probably try to avoid the tariffs, the trade war. Broadly speaking there is a perception that with biden, the cnh, which is the anchor for the fx in asia, will probably do a bit better. I think its up to them to say that we should expect a bit of a more positive reaction on asia led by the renminbi, the cnh, in the scenario of bidnes victory. Why there is some negative kneejerk reaction against the renminbi in case there is a trump victory. Haslinda lets talk about the renminbi. The yuan has been strengthening. Can the yuan strength put a limit to the dollars climb, to the dollars rebound . Julio right. I think its fair to say that, particularly, in the scenario in victory,have a biden even with the second wave, we think that the renminbi will work as an anchor for the asia fx. In that scenario, i think its true that even though we may have some sort of risk aversion because of this concern with the second wave in europe, in particular, we think that its unlikely that the renminbi will get too weak in that scenario. That is certainly a positive for asia fx. Whats apparent right now is that volatility is climbing. 40. Tility surged past and is kind of environment, where do you seek shelter in asia . What is looking good to you . Julio right. To account that we think that the renminbi trend is rooted on fundamentals, and now that we have more concerns with europe, for example, we think it will hold up well. A key component of this basket is euro. We think renminbi versus euro is something that will probably hold up well looking forward. And more strategically, we think that will we look into 2021, the scenario is one in which eventually we will get the vaccine and we will see a broader global recovery. We think that particularly not asia will certainly benefit in that scenario. So the korean won that has been performing well, our view is that probably there is room for further outperformance of the korean won for next year. That, in having said the bond market, do you see the surge in volatility unsettling bonds . We saw the biggest highyield etf at over 900 million. Im a highyield space, i think its important to differentiate the nearterm response. As i mentioned before, we are certainly now going to some sort of risk aversion related to the second wave. That is certainly justified. Whenever we get those outflows, we see some pain in the market. ,hen we look forward is asiacally, our sense will continue to outperform. So fundamentally its a good story for u. S. And europe. While we look on the valuation side, we see that both in the ig and in the highyield space, asia bonds, the dollar bonds are clearly offering a different pickup. For example, for the quality high yields we see Something Like 150 beeps on average in the high unit in the double b highyield asia versus u. S. So its a compelling story. And take into account that we continue to see, in our baseline scenario, asia outperforming u. S. And europe. We think that that kind of spread that we are getting in asia is good enough and a Good Opportunity for investors. Thank you for your insights. Still ahead on the show, the boj is expected to hold policy later. So investors will watch for the sentiment of the economic recovery. Both our Global Researchers will join us for more on that. The next samsung quarterly profit beating expectations fueled by mobile phones and huaweis moved to stock chips. There are clouds on the horizon. This is bloomberg. Rishaad back with Bloomberg Markets asia. Samsung Electronics Warning of a weaker outlook. The third forecast in quarter because it took slew orders from the Chinese Telecom ahead of american sanctions. Stephen engle is taking a look at those numbers. Steve, we are now into the session with the executives. Anything else meaningful being said there . Stephen there is. They have confirmed that there was a big spike up in those orders from huawei. They call it a rush order in the quarter ahead of those sanctions imposed by the added states, some ofing huawei from the most advanced components from american suppliers. Samsung getting a big order. But the other interesting thing for those investors in Samsung Electronics was looking at the three year and faster return they had delayed about one year ago, or earlier this year because of uncertainty and because of the pandemic. Investors really wanted to see this 20202022 investor return forecast up. The shares are now heading lower in the afternoon session because samsung executives are saying we are not ready to bring that out. It will come out in late january. Shares. A dampen on the shares were reacting lower. And are not necessarily pleased. Pleased on the one hand. This is a twosided coin. On the one hand they did very well and the Third Quarter because of the huawei rush order. But we saw a pickup in smartphone sales at 88 Million Units sold. That is quite a rebound. We dipped down considerably to the later stages of the ark of the pandemic, if you will arc of the pandemic, if you will. 80 million shipments is pretty good, considering we had 98 million of 2017. They are almost back to prepandemic levels. In the Fourth Quarter they are saying its inevitable that they are going to see a slowdown in smartphone shipments in the current Fourth Quarter. Increased competition, apple is out with a new iphone 12. And there is also other , given Discretionary Spending patterns because of the pandemic globally. Theres lots to go through on the headlines. Phones,y chips, smart consumer electronics, tb demand, etc. The politics and pandemic, according to samsung, will dominate the first half of 2021. Haslinda lets talk about the outlooks. There are facing to prosecutions. How much will the Succession Process cloud samsungs outlook . Stephen that is another overhang. When his father passed away this last weekend, he obviously has been the heir apparent to become the chairman. Leaderbeen the de facto anyways through this time of illness for his father. He has passed away, but he has not taken over the position of chairman. We speculated that, look, he has two in pending trials, corresponding trials on alleged bribery and other malfeasance, alleged malfeasance. There is a possibility, if he is convicted on any of these charges, he could go to prison. Maybe. But the last thing they want to do is name him the chairman and then have the chairman head off to prison. So there is going to be a lag affect, several months until his success for dust successor. It will be his only son of the patriarch, but there is an uncertainty and a big tax bill. Of 10ance tax upwards billion. Quite steep in south korea. There is some uncertainty. But keep in mind, the main divisions of Samsung Electronics are headed up by robust and Strong Division leaders who are not necessarily taking orders from the single head of the group. Haslinda our chief north asia correspondent stephen engle. , we areted, samsung having a q a with samsung executives. Out of that discussion, samsung is saying they are awaiting u. S. Approval of license to supply to huawei. Also upside demand from other chinese mobile makers. Those are the earnings Conference Calls still ongoing right now. For now, here is the latest business flash headlines. The board of tiffany is said to have approved its sales to the luxury conglomerate lvmh at a lower price than proposed. The Financial Times says lvmh will pay 131. 50 a share, down from 135, saving about 425 million. They say tiffany would pay it shareholders a dividend of . 58 per share. The yearlong saga has seen french government intervention. Enjoying chinas recovery from the coronavirus, posting a thirdquarter profit and a rebound from the first ever blog. That comes with subtraction. 1. 8 billion in the six months through june. Chinas daily refining rose a record 14 Million Barrels a day as chinas economy strengthens. China reported a Third Straight quarter of negative sales that have strived to cut cost and lifted activity and sent shares higher. Shares fell 6 better than the near 8 forecast drop. The slowdown continues to drag. In july, they warned that its recovery would be nonlinear and uneven as it stays the same. Rishaad coming up, sony shares going hard in tokyo. The company raising its Profit Guidance in anticipation of Strong Demand for the new playstation 5. Weve got the details. This is bloomberg. Haslinda sony shares are soaring in tokyo, of almost 7 after the Company Raises earnings outlook amid a surge in videogame demand. The company is betting on the playstation 5 and predicts more than 7 million sales by march. What does the outlook hike tell us about gaming and sony specifically . Like what the market, its heard, i think primarily sony, like nintendo, has been benefiting from a pandemic surge in Online Entertainment in general. But as has been a mixed picture its movie business has struggled. Also it lost one of its biggest customers in huawei when u. S. Restrictions have slapped down. It now by raising its profit outlook, it signaling that the ps five, the playstation 5, which is supposed to come out in adnovember, will energize new phase of growth. Tliv got some highstakes with regards to the. S5 they aim to sell more than 7. 6 Million Units. That would be led that would be by the end of march. Edwin if they achieve that, that would be a phenomenal pace. It will face steep competition in a new Microsoft Xbox console as well. Then you see the Nintendo Switch is still going strong because of, as we all know, animal crossing and the pandemic era hit. Its interesting to see that sony is banking on playstation 5 to drive its next leg up. We will see, but pricing will be a key factor in how it does against microsoft and nintendo. Haslinda how about other parts of the business beyond gaming . It does look like most of the segments are doing well. Imaginghe smartphone sense of business is kind of a mark, given chinese tensions have influenced supply to some of its biggest customers. I think the smartphone replacement cycle remains uncertain. We know the iphone 12 is coming out soon. Think there are more expectations around that particular gadget, but i guess we will have to wait and see. C edwin chan our asian tech editor. This is what it looks like as sony has a move to the upside. 6. 6 up. A decline in my 10th of 1 . What we have there is a recall of 1. 5 million vehicles taking place. Good numbers there, but thats not stopping them from what is declining markets. We have a boj decision later this morning. And retail sales are stalling in tokyo and japan. Rishaad 10 29 a. M. In hong kong. On the eastern seaboard of the United States. European leaders imposing new curbs as current social restrictions fail to stem the r ise. The u. K. Is considering one as they along with spain, italy and greece report record numbers. The top u. S. Infectious disease expert Anthony Fauci warning a vaccine will not be ready until january at the earliest. The trump demonstration upended the selection of a new leader for the wto. Washington wont join the consensus behind a former nigerian finance minister because it supports a rival korean trade chief. The u. S. Says he is too close to protrade internationalists. Signs of progress in resolving some of the biggest sources in london hope an agreement could be reached next month. London and brussels remain far apart on several areas, including what they term a level playing field. Nasa saying it identified a longrunning air leak on the International Space station and teams in orbit and back on earth are planning a permanent repair. Teams have been searching for the lake for several weeks, though nasa says leak for several weeks, though nasa says they were never in any danger. The iss has avoided any serious incidents thus far. That is a look at your first word headlines. Haslinda lets take a look at the markets. Asia in losses. Not as much as what we saw in the u. S. And europe. The outlook not looking pretty with new National Lockdowns, accelerating infection rates, a deeper recession than first anticipated. Asia pac index down. Volatility is the issue. Surging days ahead of the president ial election. The csi 300 index down three tons of 1 . The hang seng more than 1 lower. Take a look at currencies. The dollar holding pretty steady after surging on haven demand. The dollar pivoting toward a major breakout with a slump in equities. Eu weakening euro weakening. Here are some of the movers we are tracking. Samsung among them. We have been reporting samsung warned its earnings in the Current Quarter will decline, saying the strong growth in its mobile and memory business will ease amid competition and weakening demand. Yum china reported margins boosted by cost cuts. That stock almost up 1. 6 . Sinopec bounced back from its firstever halfyear loss. Talks to sell its Hong Kong Building as part of efforts to unload assets during difficult times for the real estate sector. Rishaad just a breaking headline. We have been bringing you this bad news about the coronavirus and how it is creating new record cases in europe and the u. S. With the virus upsurges there in the midwest. Taiwan, which had a remarkable record of avoiding covid, 200 days now without a locally transmitted covid case there on the island. It is the worlds best virus record by far and reached this new landmark. The last local case came april the 10th. 23 Million People live in taiwan. Cases with seven deaths. We will have a special report coming from taipei a bit later on on this happy milestone. Johnson johnsons ceo says the coronavirus has been underestimated. Speaking on the David Rubenstein show, he also said the pandemic highlighted the importance of Global Public health security. Back, what would you say the cdc or fda or white h ouse or hhs should have done differently . Is there anything you would recommend to someone in the this kind ofeing Pandemic Response . You are right. When we look backwards, things always seem clearer. I would say almost all of us have underestimated the dramatic impact of this outbreak. If you would have asked most people eight or nine months ago if you would ever see the impact we are seeing around the world right now, few would have gotten it right. I think there are lessons to be learned. First and foremost is the important statement of Global Public health. Going forward, we will understand much better that if we dont have Global Public health security, we dont have national security, we dont have economic security, and we will not have security as a society. The importance of being prepared, making sure weve got the kind of protocols in place, that we have certain products prepositioned, and frankly also move from a maniacal focus on efficiency and effectiveness in certain cases to one more of resiliency and sustainability, particularly for these situations. Evend were you even you w surprised on how dependent the pharmaceutical industry is on offshore manufacturing from china . We almost had to beg the chinese to get some material. Are you surprised we were so dependent on offshore production . Alex yes. This is an important lesson to every supply chain. The good news is over the last several decades the globally integrated supply chain has reaped tremendous rewards in terms of efficiency and effectiveness for so many different companies. However, it is important to realize we have to make sure we have the kind of redundancy and resiliency when these types of situations arise. We are looking hard across our supply chain to say, yes, we can still take advantage of so many of the efficiencies from what we were doing before, but what other things do we need to think about . Reshoring, what are the capabilities to have more local to ensure that, in future pandemics, we are all better prepared . David how do you think the world will change for Johnson Johnson once the pandemic is behind us . Alex i hope we come back to a new and Better Normal than just the old normal. Our value system along with innovation do depend on proximity, collaboration, and working together. That said, we also feel that Going Forward we should not just fall back into the exact same habits where we fly halfway around the world for the same two hour meeting. We need to have the same large gatherings with the kind of frequency perhaps not. Does that mean people will be five days in the Office Versus others . Longterm,t over the allowing people to create informal connections and networks around the company is really important to maintain our culture as well as the innovation in our products and services. Johnson johnson chairman and ceo alex gorsky speaking with Carlyle Group cofounder and cochairman David Rubenstein. Still to come, a check on japans Economic Health with bank of america Global Research. Thethe economy is recovery is said to be gaining momentum and the worst could soon be over. This is bloomberg. Haslinda bank of japan is standing pat on rates as it is to announce its latest policy decision. Investors are likely to focus on the banks assessment and risks to the countrys economy from the pandemic. Lets discuss this with Izumi Devalier, Global Research head of japan economics. She has recently upped japans gdp forecast. You are pretty upbeat. What is driving this optimism . Izumi im not sure i would call myself extremely bullish on the outlook. What we are trained to say is it is clear the economy bottomed in may and the worst of the coronavirus stock shock hit. Since then, we had a lull in the recovery because of a modest second wave of infections. That has come down. There has been a pretty decent recovery in services spending, restaurants, travel and the like, which was the laggard in this economy, thanks to government stimulus. The pickup in spending is broadening out. That bodes well for the consumption outlook. Investors have been pretty pessimistic in recent days. The boj said it will do more if needed. The question is, how much more can the boj do . Isnt it close to being out of ammunition . Izumi i would agree with you that the bank of japan has already done a tremendous amount to support the economy, especially backstopping loans to troubled corporates who are suffering from the effects of restrictions on activity and services. It looks like they are content to keep the current Monetary Policy settings unchanged. They will probably exchange these Financial Support programs because we are not out of the woods completely when it comes to the coronavirus recession, especially in the u. S. And europe. I dont think there is much more the boj can independently do. Like many other countries, the focus is on what fiscal can do. Their Prime Minister is talking about compiling another stimulus package, extending programs for employment and things like that. Im not sure we will get a bazooka on that front, particularly because japan has managed the coronavirus situation well so far. Haslinda we heard from the boj the concern how the pandemic is putting a lot of pressure on the banking sector. What kind of risks do you see there . Think the risk is in the early stages of the coronavirus crisis, we had something stop had a sudden stop in cash flows. Now as the recession drags on, it has been about seven to eight months. We turn into 2021. If spending on sectors such as restaurants, airlines doesnt recover, then these liquidity risks will become insolvency risks and corporates will start going bankrupt. They already have. It means losses on lending. For the banks, that is the danger. Fortunately, because the bank of japan has backstopped some of these loans and have been increasing their Capital Buffers to adjust for this, i dont think it will be a very disruptive systemic risk. Rishaad we saw retail sales earlier showing a bit of a stall in terms of spending on the japanese main street, as it were. Does that worry you at all . A lot of these companies have been able to get through because they have had a lot of cash on their balance sheets. It is only a matter of time before they start to feel. To feel it. Izumi in terms of september data, it is quite backward looking. The good news is when we look at the superhigh frequency indicators, it looks like momentum is tough again. There are still a lot of uncertainties. If we were to discuss whether the risks are to the upside or downside, it is probably to the downside. The one concern on the minds of both Business Owners and the government is we are coming into the winter season. Japan has so far managed the coronavirus situation pretty well, but the risk of a third wave is always around the corner. The concern is because of that uncertainty, spending in general, Economic Activity levels will not quite be able to recover to 100 . It will take some time before it before Business Owners gain confidence. Those risks around cash flows are still there. That is where the government and boj must continue to support the economy at this time. Having parliament talking about major countrys cooperation on debt problems. Going on to say things about the need to be vigilant, they will be monitoring the budget and take steps to help struggling people. That is one side of it. What japan and so many other countries have been through, it accelerated what were trends before. Do you think when this is said ad done, that we might have slightly different engine of growth in japan which might avoid the problems we have been seeing with its economy for so many years . Izumi yes. One very promising longterm engine of growth is digitalization. Coronavirus crisis put highlighted how far japan is lagging behind in areas of digitalization. There is a lot of policy strength and focus on increasing the budget for digitalization, starting with government services, but on down to the private sector. The concern is what do we do with the capx outlook now that the olympics build is over . What can replace that investment engine . Are these investments around digitalization and upgrading japans infrastructure. Haslinda investors are looking for shelter. They are looking at the end, at at the yen, which is at a onemonth high. At one point at what point will a strong yen worry the boj . Izumi at 104. 5, i dont think the bank of japan is particularly concerned. It is not like they can do a lot about the situation. 104, start breaking below and the risk of the dollaryen falling to say 100 increases, then both the boj and government will be on guard. I think you will get a lot of verbal intervention, for example, and possibly rebalancing of flows. We are forecasting dollaryen t o end the year at 103. Anything below that starts concerning policymakers. Rishaad good stuff, izumi. Izumi devalier, bank of america Global Research head of japan economics. You can turn to bloomberg for more on the bojs policy meeting. Go to our bloomberg terminal. You can get commentary and analysis from bloombergs expert editors. A lot more coming up as we wait the decision from the boj. Bloomberg. Haslinda Deutsche Banks sixth income trading revenue fixed income trading revenue beating all but one of the lo investment banks so far. Boomfo says the trading is expected to continue through the end of the year. Well continue to trade despite some of the headwinds in the environment. Two of our businesses, the private bank and Corporate Bank are fighting through the Interest Rate headwinds, but executing on their strategies and offsetting that headwind. Of course there are uncertainties in the macroeconomic environment. That is something we factor in as we manage our risks, but we remain quite confident in our outlook and the way we are managing this pandemic. It is supporting clients, supporting the economy as we all navigate an unexpected environment. You said your managing risks. How hard would Deutsche Bank be hit if there were another wave of lockdowns across europe . James we built some conservatism into our numbers. We took an adjustment more conservative in our provisions. We think that prepares us well for the uncertainties ahead. We are not seeing a deterioration in the portfolio beyond what we expected in this environment. While we are all subject to the direction of the economy and potential impact of more dista ncing and Protection Measures in the economy, we think the Second Quarter experience showed us the households and corporates are relatively resilient and governments are in a position to support them during this period of uncertainty. You continue to say you expect pretext profit in the full year, which analysts for a long time did not believe. 846 million. At will the pretext profit exceed one billion . James we are continuing to work through restructuring. Bytax profits was burdened 550 million of severance charges and transformation charges, as well as the burden from the capital release unit. We expect that to continue into the Fourth Quarter as we continue to execute with discipline on this transmission of the company. Profitlion of pretax puts us in a good position to deliver on our objective of being profitable on the prextatx pretax line. David has this good momentum continued in the Fourth Quarter as well . James we are continuing to see Client Engagement in the as the environment normalizes a little bit. There are still ovens ahead of us, whether the u. S. Election or brexit, that causes some volatility in the market. 47 yearone very well, on year. That has been quite consistent over the last four quarters. Doubleup in high digits. For us, the sustainability of these revenues is a key factor. We think a significant amount of it will stick. Rishaad Deutsche Banks cfo speaking to bloomberg. Lets have a look at some of the business headlines. Australias anz Bank Reporting for your profits that fell the most in a decade. And as bad debt charges cash profit coming in at 3. 7 6 billion aussie dollars through to the end of september with revisions of two and threequarter billion dollars. A is shaping up to be an ugly earnings season during the countrys first recession in 30 years. Ining is to fire more staff the prolonged grounding of the 737 max. That would take the total number of job cuts through layoffs, attrition and retirement to 30,000. In all, boeing is cutting 19 of its prepandemic workforce amid unprecedented collapse of air travel. Ford smashing estimates, fighting off the effects of the pandemic with new models and management. Strong sales and pricey pickups. Ford posted earnings way beyond the 19 sent forecast cent forecast. Soaring in extended trading. Haslinda lets take a look at where markets are now. The global rout continues in asia. Pretty much red across the board. The hang seng index down. Stocks following the most in two weeks, down about 1. 2 . China and the nikkei down 7 10 of 1 . We are waiting to hear from the boj. We heard earlier from bank of americas Izumi Devalier saying she is relatively upbeat on japans economy. She says Consumer Confidence has a long way to go before it fully heals. Where we are in terms of korea, we are tracking samsung of course. Samsung morning its warning earningsearnings in the current order will decline amid intensifying competition and weakening demand. Taipei and singapore also in negative territory. Plenty more to come in the next hour of Bloomberg Markets asia. Do stay with us. 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 up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Haslinda it is almost 11 00 a. M. In singapore and hong kong. Welcome to Bloomberg Markets asia. Rishaad im Rishaad Salamat it. Slaalamat. Rising virus numbers and new reductions added to concerns about the economy. New lockdowns in europe may trigger further ecb stimulus. Haslinda samsung beats forecasts in the Third Quarter with a final profit rising 52 on mobile demands to more than 8 billion. However, shares fall on weak chi ps. Rishaad 200 days virus free. Taiwan bucking the covid trend by reporting no new local cases in nearly seven months. The best virus record by far. We have the latest from taipei. Taiwan, virus free in but not the rest of the world. The u. S. And europe seeing rising virus cases. That is impacting market sentiment. The global rout extending in asia. Worried about those virus concerns, tougher lockdowns that may hurt the economic outlook. Spiking,out 40, bearish. Forcations are it may lag yet a while. Tracking counterparts in the u. S. Coming down about 1 . Tech valuations seem to be overvalued for very long time. Rishaad lets have a look at the thai open. Bangkok down in the region. Of 1 of the downside. 4 10 of 1 on the downside. Coronavirus research weighing on the countrys tourism economy. That is one of the mainstays of thailand economically speaking. Another factor is the democracy protests in thailand that are apparently unlikely to derail the governments plans to borrow some 74 billion this fiscal year and add as relief measures in the country. Looking at the prospects of the downn session, nifty on the futures contract. A weaker start of the session in mumbai. Lets have a look at some of the first word news with european leaders imposing tough new virus curves as current social restrictions failed to stem the rise. Germany and france are going into National Lockdown again. Britain is considering one as they report record numbers. The top u. S. Infectious disease expert is warning a vaccine will not be ready until january at the earliest. Big tech being warned its Legal Protection over user content should be removed. That amid amid accusations they abused their power over political speech. Twitter, facebook and google all grilled by a congressional hearing with republicans demanding to know who put them in charge. They enjoyed some immunity from content, but angered lawmakers by limiting some recent stories. U. S. China relations said to worsen further with the justice charging dea says in the effort an effort to track down mainland fugitives. Five of these individuals were arrested this morning. The rest we believe are in china. Since 2014, at the direction of chinese general secretary xi jinping, china has been engaged in a Global Operation known as fox hunt. China describes fox hunt as an International Anticorruption campaign in which it seeks to locate the geomet fugitives around the world legitimate fugitives around the world to bring them back for trial in china. Rishaad the board of tiffanys said to approved an acquisition of lvmh at a lower price than proposed. Down from an initial bid of 35 a share, saving 425 billion in total. We are told tiffany will pay shareholders a dividend is a look at the first word news. Aro u. S. S. Stocks dropping the most in four months. Like asiaoes look falling in tandem. Can anything provide any support for asian stocks . Find the asian stocks would be a lot lower than they are if it wasnt for china. The chinese equities are holding up reasonably well. The csi 300 is slightly up this morning. It actually rose yesterday in spite of the weakness elsewhere. Asia is looking at china and seeing a little bit of hope, even though the rest of the world is looking pretty ugly. I suspect if it wasnt for that, the japanese and may be korean stocks would be lower than they are. China is a bit of a bright spot. It might not hold up that much longer as u. S. Stocks continue to slide this week. People can see there is still some divergence with the chinese economy so far ahead of Major Economies in the world in improving from the pandemic. The size of the domestic economy is helping to support Securities Markets onshore. That is a bright spot that is helping to alleviate the pain. If we get more bad days in europe and wall street, asia will certainly take in some of that pain. They will not be able to deflect all of it, despite china. Rishaad there is of easily an inverse correlation between stock falls on the wall Street Market and the dollar going high, effectively as a haven. If we have more of these, does mean the dollar will start a major reversal to the upside . Mark the bloomberg dollar index has reached this point. We had this long downtrend since march. It has reached this point where people are suggesting it may flip into a strong period for the u. S. Dollar. We will seeearterm strength for the u. S. Dollar, but the big change since march is in relation to the chinese yuan. Earlier the yuan was under pressure. People thought the yuan could go even weaker. There has been a turn in that respect. The yuan is seen as a strong currency. The pboc put some measures to weaken a slightly in the past few days. It is only to stop it to becoming a oneway bet to the upside. The yuan is not about to collapse. The pboc is not about to do anything that would really in danger it in the mediumterm. Dollar yuan probably wont go that much higher. That would help to moderate any move in the dollar index. We may see a bit of nearterm strength for the u. S. Dollar if stocks are weak, but because of the yuan situation changing so much, that means the u. S. Dollar has limited upside. Haslinda investor keeping a close watch on the upcoming mega listing. Will that impact asian stocks . Mark definitely. It is so big. There is a much money tied up in that. The first day of trading will be a strong signal across asia and maybe globally as well. All eyes will be tuned on the first day of trading. If it trades above the ipo price and isnt too disruptive, that will be a big sign of relief to asian markets. Goes into a if it tailspin and Everyone Wants to get out, that would be a negative signal and could be a globally negative signal. On the firstens and second day of trading will for a big implication markets across the world. Probably as a global signal if such a big ipo, so much money is tied up in it. Rishaad you can follow our markets live blog for all the market analysis. Co. On the bloomberg terminal. Go on the bloomberg terminal. Signs of life in the indian economy. Business activity and demand helping the recovery from the pandemic induced slump. Haslinda next, sim some beats profit estimates, reporting its highest income in eight quarters. But the Fourth Quarter forecast, we will see how shares are responding next. This is bloomberg. Haslinda as Companies Find new ways to work during the pandemic, Tech Companies have felt the pressure to keep up. A ceo spoke to bloomberg about the impact the coronavirus f rom the coronavirus and business. Having seen what has gone on in the last few days, we know those sorts of numbers will have impact. Our business has taken into account some scenarios. We have not considered extreme scenarios at this time. We will have to see how this plays out. Is ine have also noticed many geographies businesses have learned to work with this medical practice. I am not saying it will be possible with extreme sets of numbers, but people are using therapeutics, people are using masking. There are ways people are finding to work and revive the economy, even on a personal level. As of now, we factored in some scenarios. Do you think you will have to factor in extreme scenarios . At this stage, we dont see that. Rishaad just getting the bank of japan coming out. Its downgraded view on inflation. It also downgraded its view on the full year 2020 growth targets. The 10 year yield target is still at about 0 . What we do have is an overall more pessimistic economic assessment. Risk tilted to the downside for economic and price outlooks. 81 onntral bank did vote the Rate Decision and were unanimous on asset purchases. The bank of japan saying the economy will follow an improving trend as the virus does wane, globally speaking. This is what we have coming through at the moment. Cpi likely to be 7 10 of 1 down. Of 6 . A figure growth in 2021. They upgraded the forecast looking ahead to next year because they were looking at 3. 3 growth for 2021. Now they are looking at 3. 6 . A better forecast for next year, but more pessimistic for this year as a whole. Haslinda the downgrade in gdp and cpi pretty much expected. Looking at the reaction, not surprising. The nikkei stock Futures Holding at 0. 8 loss. Yen also standing pat. Pretty much in line with what the market was expecting. We heard earlier from bank of america, she said it was already clear the economy did bottom out back in may. She does not say there is much to worry about. We see the boj not doing very much today. Rishaad if we are looking at the future, they are seeing more positive growth for 2022 as well. An extension as opposed to 1. 5 . Cpi 0. 7 in 2022. They go on to say, the bank of japan, that they need to pay close attention to the Financial Systems risk, which they were quite sanguine about when the report came out on the 22nd of october. They are saying the Economic Activity is resuming. Private consumption is picking up, supported by the government. The japanese Prime Minister was talking in parliament, saying he will be monitoring the domestic and International Situation and taking steps as to what is needed and without hesitation. Ass is first and second extra budgets will be properly carried out according to the new Prime Minister. I am going back to the bank of japan, saying Business Investment will continue to decline for the time being, but the outlook for the economy and prices is extremely unclear. Notenda interesting to the boj says whatever it is saying now assumes covid want spread wont spread on a largescale basis again. That against the backdrop of surgeon cases in europe and the u. S. Surging cases in europe and the u. S. Boj saying Business Investment will continue to decline for the time being. The outlook for the economy, prices extremely unclear. The overall sentiment is more w risks, downside assurance the boj can act if needed. Tracking development in japan, they say there is little the boj can do. Rishaad i was seeing them making a few comments as to what is to happen in the economy, saying exports, mainly auto related, will increase for the time being. We had rubber prices in tokyo hitting highs we had not seen for 45 years. Much of that was down to the anticipation that chinas economy would engender further vehicle demand. Vehicle demand expect it to increase as the boj is alluding to in japan. Their outlook assumes no largescale spread of the virus. So certainly this could change depending what happens next with the global pandemic. Also saying weve got nervous markets. Bank of japan saying the tensions have eased in markets as well. That is what we have. Only a moderate pace of improvement in the economy, but they are saying things are improving. And Business Investment doesnt bode very well. It will be declining for the time being as well. You can have a look at these headlines as you wish if you want to turn to your bloomberg commentary on this policy meeting by that Japanese Central bank. You can get analysis from bloombergs expert editors. That is the bank of japan standing pat. What they have been doing is putting a more pessimistic view on what will happen in 2020 in terms of inflation and growth, but they are more positive for next year and the year after that. That is the bank of japan. Weve got a lot more coming up on the program. Keep it here. This is bloomberg. Haslinda General Electric said after the company surprised wall street with a profit, and licks analysts expected a loss. Will recall when we were together in march, we were at a very different place. We knew our health and Aviation Businesses were outstanding franchises. 2020 was to take the next step in deleveraging with 20 billiondollar proceeds and continue to build momentum with respect to the turnarounds in our power and renewables businesses. Ealays results gives r support to the argument that that turnaround is underway. It is still early, make no mistake. We are encouraged by what we saw in our power business, particularly gas power. Renewables was profitable. This is the first time we had all four of our reporting sectors profitable. Health care was the standout in the Fourth Quarter. Aviation is standing on the back of departures being down 40 . Far better than the spring, but still down. We are building momentum. There is work to do in all of our businesss. What you see today is evidence we are moving forward, covid or not. Ceos, youe other focused on controlling costs, also executing well. There is a limit to how far you can take that. At some point you have to grow. Where do you see the growth coming up . Want to do in the shortterm is make sure we are driving both cost and cash actions so weve got more control of our destiny. Longerterm, g. E. Is set up to lead and grow. If you think about where we are in power and renewables to lead in the energy transition. Personalized health, more efficient care delivery, we sit in the middle of what will come. An important opportunity for us as we think of a safer return to flight, our Aviation Business will play an aborted role. We see profitable growth we can convert into cash across the entire g. E. Portfolio today. David talk about power. You have different aspects of power at General Electric. Give us a sense of where you are. Weve got an election coming up. I will not ask you to take a position on who will win or lose, but there is diversity when it comes to renewables. Are you putting an up or down if we had democrats in charge rather than republicans . Larry we run our renewables and power as global businesses. We see transitions in many places from coal and nuclear to the power gen sources of the future. We dont think that is strictly wind and solar. Gas has an Important Role to play. The desire fort high reliability in addition to addressing climate change, we think we are wellpositioned. Our onshore wind business is strong. Near record chapmans in the Third Quarter. Theecord shipments in Third Quarter. Business,as power which is the heart of our power segment, continues to prove our leading technologies have a role to play today. In time, with the introduction of hydrogen, even more so Going Forward. Rishaad the g. E. Chairman and ceo speaking to david westin. This is the time of day when we get the morning calls. Sophie kamaruddin has been having a look at top calls and recommendations. Yuan strengtht will persist even if the pace of its depreciation slows down. You are following one veteran analysts forecast for the renminbi. The sophie one sees the yuan performing like the deutschmark of asia, with the pboc performing the role as the bundesbank of the region. In the mediumterm, he sees the yuan outperforming the euro as well as the dollar. He predicts chinas economy will europe ine u. S. And size. He is focusing on chinas economic fundamentals and policies as well as longterm thinking as exhibit a fight by the fiveyear plan. As exemplified by the fiveyear plan. Haslinda looking at iron ore prices, chinas recovery has been a pillar for it. What is the outlook for iron ore . Sophie we are seeing pressure on iron ore prices for a third weekly drop. Anz sees it going down from here. End of to 65 by the 2021. As to why anz pointing to signs of slowing demand in china as authorities attempt to cool overheating in the property sector. Rishaad Sophie Kamaruddin there. Lets quickly look at Chinese Markets as we head into their lunch break. A day where we are seeing declines. Some controls to liberalize the yuan. Thise seeing gains unlike public country equitywise. Rishaad we have a very hazy start to the day in mumbai. We have the time coming up to 9 00 in the morning. Looking at the latest nifty contact in singapore suggesting we will be under pressure after this part of the world has seen falls with equities. Not nearly as deep as we saw in the United States overnight. Lets get over to the first word headlines. Briggs it talks head back to brexit talks head back to brussels thursday. Sources in london say there is even hope an agreement could be reached early next month. We are told the two sides are close to an accord on state aid na d aid and how any agreement would be enforced. Trump administration has upended the selection of a new leader for the wto by vetoing one of the two remaining candidates. Washington wont join the consensus behind a former nigerian finance minister because it supports her rival, the korean trade chief. Said sheis sai has is to close to protrade internationalists. Saying the Anticorruption Commission says any possible violations after another news outlet said it ordered an independent audit. Auditors are looking how the funds would be dispersed within days of the installation of the new state government. Hasfifth major stall crossed the u. S. Gulf coast. Hurricane zeta came ashore near new orleans and may be the most powerful system to hit the city since katrina in 2005. It is expected to hit new orleans with the strongest gusts in 15 years. Initial damage forecasts are as high as 5 billion. That is a look at the first word headliness. Headlines. Haslinda asia expanding declines after those losses in the u. S. , amounting to more than 3. 5 . Msci asiapac index down. Losses in korea. Futures pointing to a higher open, trying to invest in those losses which we saw overnight. In the fx space, Dollar Holding Steady after surging on haven demand. Dollar they say pivoting toward a major breakout with a slump in equities. Nikkei currently trading up 1 lower. A brief look at the markets. Rishaad lets have a look at activist investment. Blue orchid capital alleges the Australian Company seeks China Business as fake posts. Shares are currently paused. Bloomberg reached out and we are awaiting their response. Joining us from austin, texas is the author of the report. Great of you to join us. Tell us why you think this companys share price is only worth seven australian dollars 20, which would be a significant discount to the 22 aussie dollars is trades it. Thank you for having me. Seek is now a story of zhaopin. We think that platform is grossly mispriced. Noncore china assets growth is stagnating. We think our Due Diligence shows it is not the case. Data shows it is far from being the number one platform in china, that it lost its number one place in the market to the clear leader. Due diligencer show allegations of zombie resumes that seeks to pay people to post fake resumes on the platform and a number of posts from fake employers. Tohaad i think you referred zombie resumes and phony jobs in your report. Did you get granular and have a look at those particular posts, etc . Soren we did. We look at their high end jobs platform which says it will be a key driver of growth in china Going Forward stop 70 s fo rward. 70 of the posts were fake or recycled. When we contacted the companies that claim to be posting for frequent positions, they were either deregistered in china, or in one particular case, they told us they had never heard of the platform and the posts attributed to them were fake. Haslinda we are getting headlines that seek has paused trading pending an announcement. Do you know what announcement could follow . Soren they will respond to the report. I am sure i am off the Christmas Card list. [laughter] haslinda you are taking issue with seeks amount of debt. You say it is at dangerous levels. Of companieslot have tremendous debt given where rates are now. What exactly about seeks debt that you are taking issue with . Soren we think that grossly understates how much debt the company has. If we make a true apples to apple comparison and factor in capitalized software expenditures, we think the troop net true net debt is pretty high. Shareholders have this misperception that seek is going to grow and service this level of debt through the continued popularity of the zhaopin platform. Our Due Diligence shows that is not the case. That platform is actually struggling. We see that with the zombie resumes and number of fake posts we see. Haslinda it has been paying a dividend. Surely its cash flow is pretty good. Soren you would think that by looking at the surface. When you unpack the numbers, a lot of the dividends is financed by the debt they are raising. The interesting thing about seek was not only was it a rollup that was heavily indebted, but it had lowquality earnings. A substantial part of their profits and earnings from yeartoyear are not driven by the underlying business, they are driven by one time cash gains which by definition are not repeatable. It is aestors say dividend, a lot of the earnings are driven by these oneoff gains that seem to magically appear again and again. Are taking major issue with the chinese arm of seek, but you are not exactly enamored by the Home Companies either. It does stand up much better, according to your report. Tell us about your problems there. Soren sorry, with respect to the australian platform . Rishaad correct. Soren yeah, so no one is paying 400 times full earnings for an australian platform that hasnt grown in three or four years. It is trading at this rapid growth multiple because people believe in the companys claims that this platform is the number one player in china, which is not the case, and that this platform will be the driving engine of growth. That was the focus of our report, like the ghhigh end jobs platform. However, when you read what people in china are saying, employers are saying the platform is not useful because there are so many fake resumes. Jobseekers are complaining about the number of fake posts. That is not a platform that will be valuable at 400 times full earnings. That will be a much smaller multiple than what you will pay for on the market. Haslinda thank you for joining orca capital. To reiterate, we reached out to seek further response. We give you an outlook for the Energy Markets as the pandemic is seeming to impact the demand outlook. Is bloomberg. Rishaad the Energy Industry faced an unprecedented challenge from the global pandemic. In april there was a history making drop in Global Oil Demand billion barrels of oil. Lets bring in adam sieminski, president of the King Abdullah Petroleum Studies Research Center. This is an independent nonprofit think tank in riyadh. Thank you for joining us. Things have gotten better, but there is still this mismatch between demand and supply, isnt there . Adam the effects of the covid crisis certainly arent over yet. A lot of countries are experiencing new lockdowns. Demand a bitp soft. But we had a clear recovery from the worst of times in april and may. I am fairly hopeful we are going to see economic recovery out into 2021. That should begin to rebalance the markets. What we have been seeing also through this whole pandemic is that many of the trends there were have been accelerated. One may be that oil demand will not recover to levels of 2019. What can be done about that . That is a good thing in some ways in terms of the environment. Tell us about what you have been doing in trying to get the hydrocarbon industry to become more environmentally friendly. Adam lets think about those numbers a second. Oil supply and demand models say we should get back to Something Like 96 billion barrels a day by this quarter. We could be near 98 billion barrels a day by the end of next year. I think there is a fairly decent chance with both population growth and economic growth, particularly in asia, that we might see 100 Million Barrels a day by the end of 2022. That would get us back to where we were at the start of this year. Your question about what the industry is doing is i think a critical one. Under the saudi g20 presidency energy saudi arabia, ministers from all of the g20 countries and guests, including singapore, were adopting something we call the circular Carbon Economy approach. The idea is to use clearly defined ways of dealing with carbon management. Reduce, reuse, recycle and remove. Renewables, wind and solar, efficiency. Recycle and reuse, find ways to use Carbon Dioxide as an asset, a resource, and then remove. That will be the critical one. Looking at the trends, 80 of our Energy Around the world still comes from hydrocarbons. That is probably going to come down. Even in the most aggressive renewables scenarios, there is still a lot of oil and gas being consumed in the world. We have to deal with Carbon Dioxide. We have to find ways to literally direct air capture. We have to stop it. Ithave to find ways to store geologically or biologically. This will be critical Going Forward. Haslinda what is the future of fossil fuels, then . Adam i think fossil fuels still have a lot of opportunity ahead. What has to be done, of course, is to use those hydrocarbons in a way that doesnt damage the environment. That is where investment and Regulatory Frameworks come in. In fact, we should take advantage of the stimulus packages surrounding the covid crisis to push hard on the Technology Associated with managing carbon. You talking i heard about earlier would be one of the key ways of thinking about that. Blue hydrogen, green hydrogen. We need the Technology Associated with storing carbon, acycling, reusing it, and global effort to do that is go ing to be critical. Biological approaches, geologic approaches, literally using every tool in the toolbox to address the climate challenge. Haslinda we talked about how the pandemic is impacting demand for oil. When the pandemic blows over, do you see shale going again . Shales biggest problem has been the combination of Lower Oil Prices and the difficulties in financing that are occurring in the shale patch in the u. S. Just as an example, getting Equity Financing is almost impossible right now in the oil area. Availability of debt is limited. With the low prices we have, cash flow is not providing the same level of support that it was earlier. The rig count is down. Shale always has the opportunity to improve the costs and technology. I dont think it is going to go away. Over the next year or two, i think it is not going to be nearly the dominant force in the markets as it was in 2018 and 2019. Quick word on your forecast for the oil price. I dont want you to move to when you think we will see peak oil, or have you already answered that part of the question . Adam peak oil people are talking about now is peak demand. The energy transition, moving toward nonhydrocarbon fuels. Has aarticular thesis ways to go yet before it becomes real. I think quality of life Still Matters to a lot of people. Decarbonized to sectors like aviation, steel, cement, petrochemicals and so onn. Technology can deal with the carbon associated with that, but you will still need those hydrocarbons. Short run, i think oil prices are below replacement costs now. This is the problem youre seeing in the shale patch in the u. S. Eventually prices are going to have to come up. Bands just look at the associated with trading, at some point we are likely to see Oil Prices Back up in the 65 a barrel range, but that may take until 2022. Rishaad good to see you, adam sieminski, King Abdullah Petroleum Studies Research Center in riyadh. Checking on the indian markets, been open about three minutes. This is the situation in mumbai. All red at the moment. This is following the global theme. A 1 fall further nif for the nifty banking index. All sectors opening with losses on these markets. We also have the sensex in play at roughly the same kind of decline for broader markets as well. Haslinda amid all the bad news, heres the good news. Coming up, time one is celebrating a rare positive coronavirus milestone 200 days without a single case. We will have a report from taipei. This is bloomberg. Haslinda taiwan is celebrating a remarkable milestone in the virus pandemic. Without a single locally recorded case. This is a significant moment. This is aright, significant moment. The milestone of 200 days without a locally transmitted coronavirus case. That is by far the worlds best virus record, even as coronavirus erupted in europe and in the u. S. Taiwan last reported a local case on april 12. There has been no second wave. Taiwan is about the size of australia. It had 550 confirmed cases with only seven deaths. That is among the lowest totals globally. Some experts we talked to say taiwan is the only major country that has so far been able to keep the Community Transmission of coronavirus eliminated. That is more impressive because many people in taiwan live closely with one another in apartments. It is not easy to have that achievement. Rishaad how has taiwan managed to do this . Tell me about some of the measures that have been in place preventing it, and what measures are in place now to stop a resurgence. Cindy taiwan has done a lot of efforts in terms of virus containment. It generally comes down to three principals. They are early deployment, prudent action and fast response. Taiwan shut down its borders to earlier thannts most countries in the world. That proved to be a successful strategy, especially for an island. Taiwan adopted comprehensive Contact Tracing strategies. Taiwan normally trades around 20 to 30 close contacts of each case. In some extreme case, like a worker working at a hostess club in taipei, the government traces as many as 150 that she had contact with. Those close contacts after being traced and detected, they all needed to undergo a 14 day home quarantine regardless of test results. This can prevent them from potentially spreading the virus further. Early deployment, the taiwan government expropriated all locally produced face masks and banned the export in january. Later the government set up a National Team of face masks to beef up capacity to 10 times higher within four months. That enabled the government to distribute and ration out face masks to residents on a daily basis. These things contributed to taiwans success on virus containment. Rishaad thank you so much, our breaking news editor in taipei. A look at some of the business headlines. The board of tiffany is said to have approved its sale to luxury conglomerate lvmh at a lower price that originally proposed. Sources saying lvmh will pay 171. 50 a share, down from the initial bid of 135. It means lvmh would save 405 million on the acquisition. Tiffany will pay its shareholders a dividend of 0. 58 a share. Dramatic moves by the french government which has intervened. We had the two in court as well in the United States. Lets look at Samsung Electronics, profit rising better than expected in the Third Quarter. By mobilephone shipments and because huawei has been stocking up on ships ahead of u. S. Sanctions last month. Pressure,er a bit of not just because we have a declining market, but also because samsung expects growth to fall in the Current Quarter on weakness demand for chips. Reportings anz fullyear profits down the most in more than a decade down to recession, which has swelled bad debt charges. 3. 25 profits coming in at billion aussie dollars. It is shaping up to be a pretty egly season for thes australian banks during the countrys first recession in 30 years or there abouts. Haslinda Standard Chartered is set to report earnings in a few minutes from now. Analysts expect cuts to Interest Rates in asia. On the positive side, they expect low wealth provisions to be manageable in an Economic Forecast remaining stable for now. Banks have lost favor with investors after they canceled dividends. The stock has 14 buy calls, seven calls to hold and three sells. O will be speaking to its cfo 2 00 p. M. europe at hong kong and singapore time. Dont miss that. Rishaad we are looking at the taiwan market in light of that good news, about 200 days of no contagion. Down like the rest of asia, 1. 2 . Lets check in what is going on in hong kong as the hang seng goes out for its lunch break in about 3. 5 minutes. Hang seng 1 in the red. From Bloomberg Markets middle east is next. Are you frustrated with your weight and health . Its time for aerotrainer, a more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. Do the aerotrainer super crunch. The prestretch works your abs even harder, engaging the entire core. 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