Transcripts For BLOOMBERG Bloomberg Markets Asia 20240711

Deaths, and germany reports is highest fatalities since april. Brazil is resuming trials of chinas vaccine amid claims the original was political. Joe biden held his first calls with political leaders in tokyo and ellis and dolores seol. And calls for stronger twoway ties. He also wants to meet biden as soon as possible. Korean president moon called for a stronger aligns with the u. S. And said they agreed to Work Together on the virus and climate change. Financial markets in the philippines will remain closed as another powerful storm heads across. At least one person has already been killed. Currency and trading has been suspended. The typhoon is the 21st storm to hit the philippines this year. Winds gusting to 250 kilometers per hour. It is then forecast track towards vietnam. Global news, 20 four hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell, this is bloomberg. Lets get a look at the asian markets. They are trading higher right now. Inching up. Rising for a ninth day. To a record close high. Up more than 7 this month. The ms asia index up. Worrying, investors about the geopolitical concerns, the implications of the prodemocracy leaders. Take a look at where we are, in terms of the fx market. Dollar index slightly lower. Close to two year lows. Forecasts have predicted a slide in the greenback. Heres how it is looking for Tech Companies in focus. Recovering from the losses we saw in recent days. Chinese tech giants have been hit, losing almost 290 billion of market value over just two days. Rishaad we are going to have a look at the situation in hong kong. It is facing multiple challenges to the economic recovery as the world awaits a vaccine that could help travel and tourism. Political tensions faced by the administration when it comes to turning things around. What thew tells us Legislative Council means for the economy. Think like any jurisdiction, the fundamentals must be constitutional, like what in our basic law is upholding the responsibility of both the executives and the legislature. I think you mentioned one that every into basic law member of the executive and legislative chamber will need to pledge their allegiance to uphold the basic laws, the National Security, and national interests. I think its a matter of security obligations. When people look at hong kong in totality, like many parts of the world, we are struggling against the pandemic, and fighting trying to come out of the economic recession caused by these external factors. David i think the initial gdp numbers out a few days ago indicate we are coming out of that. We are getting the final gdp numbers tomorrow. What is the messaging to the International Business community and markets in the event, and who knows where the political spectrum is moving, in the event that we dont have opposition on the political spectrum, which as you perhaps alluded to, the last 50 years has not been part of why the economy has been so vibrant, why do you think that should not be an issue . Remainink hong kong will a vibrant, dynamic every legislature, i think you would expect different voices, and it is also being done in the same way in the legislature. But there are basic principles that all members need to uphold. About thee ask Incoming Biden Administration into the u. S. What would you point to in messaging to the administration to argue and make the case that china hasnt, and hong kong hasnt simply become just another chinese city. What can you point to to demonstrate that . First and foremost, i think hong kongs message does not apply to a single country. We interact with the whole world. Hong kong is also a member of Many International organizations. In my area, the trade area, hong kong is a member of the wto with 164 other members. We trade with the world extensively. People who do business in hong kong will know that when hong kong is open and competitive, anybody can come to do business. I think in every jurisdiction, we need to tackle problems of our own, including our own constitution arrangement. The past two years, we have seen a lot of ups and downs, including the social unrest that happened last year, and challenges to our institutions. The point for is hong kong to deal with those situations. Seen from the future view, our legislature, we made a very important component in hong kong, where laws are being made, Public Finance sort of being the center of scrutiny. As government officials, every interactink we have to with our legislature, because there are checks and balances, which is fully enshrined and protected in the basic law. I think that will continue. On november 3wto over the china label, the Trump Administration is insisting on it, what does it mean for manufacturers . That order kicked in on november 10. It is more than just a . If we are talking about hong justto the u. S. , it is 0. 1 of hong kongs total exports. Is a is not sort of it matter of principle. Imagine a member of the wto enjoying a separate membership would be charged the right to with four other members. I think its the entrenchment of the right under the wto. Kong commerce and Economic Development secretary, edward yau. Come, chinas latest antitrust rules set the future mainland in question. We hear from a lawyer specializing in the market. This is bloomberg. Rishaad chinas raising scrutiny of Internet Companies overshadowed this years alibaba singles day. The Worlds Largest shopping binge reported sales of 75 billion dollars. That beat last years hole. We spoke to Alibabas Group Vice President and general manager. Chinese consumers are fond of foreign brands. Those from the middle class or people with strong purchasing power from tier one or tier two cities already have a big appetite for shopping. In light of the overseas travel restrictions imposed by the pandemic, i think we can see how your enthusiasm for online consumption during these this shopping festival. When do we get back to prepandemic levels of retail sales in china . Perspective,bas we are not only looking at online sales, but paying a lot of attention to offline sales. In offline sales has been very good, and has exceeded many peoples expectations. Offline has not reached prepembina prepandemic levels, but has recovered very well. For online sales, we have seen stronger growth in both Customer Behavior and brand participation. I think putting everything together, offline sales will recover to a better level in one or two quarters. But if we only look at online sales, i believe its already returned to normal. Tom china has unveiled new antimonopolistic regulations. Change inhis as a tee the way the government approaches Technology Companies and attempt to rein in the power of Companies Like alibaba. What do you think the impact of these new rules will be . We just noted this new regulation over the past couple of days. I think we will need to further study the draft. We will see later how we should accommodate this new regulation imposed by the government. I dont think this is a surprise. As you know, the Chinese Market is in the process of constantly regulating. Chinas government would like to regulate markets and engage in more Market Research in all sectors. Over recent decades, the Chinese Government has kept improving its law and regulations. We have been growing during this process. Tom weve also seen changes in regulations around internet finance, online finance, which impacted and improved the ipo. The concerns may restrict the ability to offer credit to some of the consumers, and Financial Transactions will be seen and have more oversight. What do you think of the impact of that is on your business in the ecommerce space . Platform, we have encouraged consumers to be rational with their purchases on the basis of meeting their needs. Alibabas Vice President speaking to tom mackenzie. All shares of chinas biggest tech funds are recovering, but beijings planned regulatory crackdown has made investors nervous. In the sector, ashares, lets welcome him to our show. Good to have you with us. What do you make of this clampdown . Thes live developments in world, concerns expressed globally, but the timing is surprising. First of all, thinks perh thanks for having me. As you mentioned, increasing regulatory attention on internet Sector Companies is not a china specific phenomenon. The second thing i want to say is this is not the first time chinese regulators have taken a particular interest in certain parts of the internet sector. Yes amr released these guidelines we are talking about. Invited 27st week internet Platform Companies to discuss practices ahead of singles day, and the same thing, the same discussion happened last year when it came to the ecommerce law and singles day at that time. So regulators have taken interest in the internet sector. Then when you have a look at previous regulations in the sector, cybersecurity law, personal data laws that came out last week, the ecommerce law that came out last year, and the various actions these regulators have taken against internet related companies, video games, whether it is the Payment Companies in central clearinghouse. Theres a lot of developments everywhere in the internet sector in china. When you look at these guidelines specifically, they concentrate on some key issues around for a while. Of products, the use of data, and how that affects the pricing. So a lot of things are happening, but not just in china, i would say. Timenda this comes at a when china is making Tech Innovation a priority. It was the balancing. But being contained at home, as well. That is a very interesting point. A couple of things i will say to that, the first is from a lawyers perspective, regulations can be healthy and encourage innovation. Not specific to china, but when we look at the regulations issued by the samr, it promotes a healthier ecosystem, increased competition, promotes responsible use of power. These are good things for the internet sector. The second thing i will say is china at the end of the day is a planned economy. And we have seen a lot of examples of the china government working hand in hand with the Technology Sector in different subsectors, whether we talk about general technology, platforms, social media, cryptocurrency, theres a lot of Different Cases where the china Government Works handinhand with internet sector or Technology Companies, that will continue. That will not stop. We still have a very positive outlook about how, what, when, and general outlook on Technology Companies in china, and what, why. Here, what dome the chinese authorities want to actually achieve . They have in act this dilemma that they face, what is the midline, if you will . Thats a very interesting question. When i mentioned china being a planned economy, the china government manages different interests and the actions they take. Sometimes looking at different sectors, sometimes they are looking for issues, sometimes they are looking at other issues. When we see these guidelines being issued, first things first, it is interesting timing, but the guidelines werent prepared overnight. They have been prepared over a period of time, and theres been a consistent trend in certain guidelines being issued around this time, in front of singles day, which as you mentioned is the biggest shopping day in china annually. So thats number one. The timing itself to us is not particularly surprising. Number two is the content of the guidelines is actually not that surprising. Yes, the china government is paying very close attention to Technology Companies, that is not surprising from the Chinese Governments history of action, and worldwide trends. To us, we will continue to digest this with the companies we work with and talk to come but its not a particularly Surprising Development in many ways. We expect the Technology Companies to continue on. Get to thest want to trends. One part of my question, we are seeing the likes of google and amazon getting more under the microscope, the regulatory microscope in the u. S. Amazon, the European Commission investigating them, too. This is a global trend, isnt it . What was over there is over here now, in some ways. When we talk about over here, how much did the ant financial suspension of the ipo hurt internet or internet investors . As you mentioned earlier today, internet stocks are recovering. One thing i would say is there has been regulator actions in china and overseas directed to specific companies in the past. Companies, you would see their talk stock prices take a shift in the shortterm, may be taking a hit in some ways, but we have seen a consistent trend of Technology Companies being able to continually adapt to whatever regulatory challenges and they face. This is a challenge that governments and Companies Face worldwide. Topanies contribute a lot economies worldwide, and governments recognize the value they bring. At the same time, government is paying increased attention to these companies, which is also good in our mind. Expect this balancing act to continue if government were treated in different ways, but thats why they are here, to help people. Rishaad thank you so much for joining us, thats hoi tak leung joining us. If you are a bloomberg subscriber, you can catch our interviews by using our interactive function tv. Join the conversation by sending instant messages to our team and guests during our live programming. Check it out, it is tv. This is bloomberg. Haslinda we are watching youre watching Bloomberg Markets asia. A look at the business flash headlines. Accusing other streaming services of failing to pay taxes. The minister for information and communications held a hearing that Foreign Services are often not complying with local content rules. The Ministry Says foreign streamers generated 35 million in revenue last year alone. National carrier will resume National Flights to 10 other denso nations destinations as airlines around the world look to get back in the air. Among the destinations on the schedule will be london, shenzhen, and sydney. Hong kong, seoul and tokyo. It comes after singapore and hong kong announced a two way travel bubble for international conventions. Indias second biggest carrier and is in talks tash boeing, and is renegotiating various contracts, as the coronavirus continues to batter air travel. The Indian Government has so far restricted financial help to airlines. Alibabas singles day shopping asee breaking records ecommerce comes under increasing scrutiny from regulators in china. Alibaba added new shopping windows and additional services. Orders, 580,000 in one second. Looking at markets. Weities just coming off of had. Hank sang negative. Shanghai weaker. Nikkei shut off for the lunch break around 24 minutes ago. Upside, certainly the story is one in reverse of what we have had in recent days. Investors assessing what going on with the coronavirus situation, particularly in europe. Perhaps also taking a look at some indications equity markets are becoming a little bit overheated. Shares coming back. Thats represented with the likes of tencent and alibaba at the moment, which has fallen back due to pressure of the government in china to do something about the huge amount of power they have, and a clampdown is certainly in prospect. Tailwinds from the s p 500 as it rose to the highest level we have seen since the second of september. The nasdaq jumped by more than 2 . The tech heavy weights surging alongside the stayathome shares, as they have been called, that have been lagging. Thats the Current Situation with the tech shares. 7. 7 to the upside. Haslinda covering so recovering some of the losses. A reminder that bloombergs new economy for forum happens next week. It brings leaders to find Common Ground and shaping a World Economy from east and west. We will bring discussions throughout the week on bloomberg television. Terminal subscribers can see it all on live go. More to come in the next hour of Bloomberg Markets Bloomberg Markets asia. This is bloomberg. Haslinda its almost 11 00 a. M. In singapore and hong kong. At our this is a look top stories. Lawmakers say they will resign en masse today. Beijing tightening its grip on those not deemed sufficiently patriotic. Tech bouncesnese beijings crackdown on monopolies. Rishaad india prepares a 20 billion package to lure international investors. Prime minister modi trying all to bring back the weakening economy. Haslinda asian markets up about highs. Hing toward record when you talk about tech, tech in asia getting a lift as well, especially those treated in hong kong. Continuesnues lyft its way down. Opecplus expected to keep cuts, which were to start at the beginning of next week. Rishaad Stock Exchange in thailand moving to the downside. Something which is a bit of an anomaly of late. We have had that market coming back after being the worst performing major index in this part of the world. We also look forward to confidence numbers, which should be out a little bit later on today. These numbers should give us an idea of how things are with regards to this economy, which has really been ravaged by the lack of tourism. Consumer confidence numbers are out in just about an hour from now, but they are still hanging onto the gains we have seen of late. Looking at the nifty, looking at the end of te, what have we got for the prospects of the Indian Trading day . We are seeing a little bit of weakness creep in for stocks. Just to say that we have important data out as well as cpi coming out later today from india, expecting a 7. 3 percent increase in inflation. Industrial production of september down as well, and a contraction of 1. 9 expected there. Also news coming through, a bit of cheer for the Aviation Industry with its forecast with Chinese Airlines according to boeing, set to bike 8600 aircraft over the next 20 years. This as boeing does contract to become the worlds biggest aviation market, saying the china fundamental Growth Drivers do remain risky. Lets have a look at what else is going on out there. Lets get to new york and join Karina Mitchell for the first word news. Karina good morning to you again. Drama seeselection george are calling for a county hand recount of pallets. It should be completed by the end of next week. Joe biden reportedly leading by about 14,000 ballots. Hastrunk Campaign Says it found widespread irregularities but has offered little evidence. The chief of staff decides who can and cannot speak to the president and is often the last person in the room before a big decision gets made. Meanwhile, in other news, talks between opec and its allies are plano focus on next years oil output hikes. Saudi arabia and russia have already indicated they are reconsidering production cuts in january as the pandemic continues to hit demand for energy. Opec will make a final decision at its next meeting in just under three weeks. India has likely entered a technical recession with the economy shrieking for a second consecutive Quarter Ended coronavirus fallout. The rbis as ddp slumped in september, having collapsed 24 april through june. The government is to publish official data at the end of the month. Rei says it expects to retain growth in the current quarter. Global news 24 hours a day on air and on bloomberg quittake powered by more than 2700 journalists and analysts in more than 120 countries. More turmoil in hong kong. Prodemocracy lawmakers set to. Esign en masse hong kong chief executive carrie lam dismissed her critics. That ford not say members remaining in the Legislative Council we will have a representative administration. The check and balance responsibility of the Legislative Council. That is clearly written in the basic law as the constitutional duty of the Legislative Council, but all this responsibility has to be exercised in a responsible manner. Haslinda lets bring in our chief north asia correspondent, stephen engle, in hong kong. Where does this leave hong kongs already tenuous Democracy Movement . Stephen democracy is messy, right . Look whats happening in the United States. What is happening in hong kong is when democracy meets the authoritarian force that is beijing. Beijing passed a law that would allow hong kong authorities here to disqualify Legislative Council members if they are deemed to be not patriotic, not loyal to the cause of the mainland, of the communist party , and ultimately what xi jinping decrees. Force,in this immovable if you will, but these pandemocratic camps have said your disqualifying 4 of our members, we are quitting en masse. That is what they announced yesterday. We talked to one of them earlier this morning. Of was right in the middle drafting her resignation letter, and we are expecting the 15 remaining lawmakers to submit their resignation letters at some point today. That leaves the Legislative Council here, which is supposed to be the ultimate aim in basic law of hong kong after the handover, the ultimate aim was universal suffrage, and preservation of democratic tenets in the local legislature. Now we have zero pandem lawmakers as of today. Rishaad is this also being seen as a shot across the bows of a nascent biden presidency with these relations within washington and beijing at such lows at the moment . Stephen keep in mind, when we also had Michael Caine on today, he is a pro establishment, a. K. A. Probeijing, lawmaker and one of the representatives in the National Peoples congress, he told me one of the main reasons why these individuals were disqualified was because they allegedly made trips to the United States to try to enlist u. S. Governments help in promoting democracy in hong kong, and that was a red line to leaders in beijing. Obviously, hong kong is kind of caught in between this proxy war between china and the United States on trade and ideology and the like. A lot of people thought joe bidens presidency would help reset the tenuous relationship. However, joe biden has been very critical of the chinese as well as a candidate for president. Sometimes in the oval office, they are a little more tempered in their criticism, but we do not know if a joe Biden Administration will pick up the mantle and continue to put pressure on china and what is happening in hong kong. A trumpet ministry should official is saying more sanctions could be coming down the pike, at least in the next few months, while trump is still in office. Rishaad still ahead this hour, india rolling out 20 billion with of incentives to persuade International Companies to make their products in the country. We have details on the way. Haslinda next, we discussed how geopolitical tensions are factoring into investor strategies. This is bloomberg. Rishaad china is preparing to roll out a raft of new antitrust , and that is set to hit some of its biggest Internet Companies. Its projected both tencent and remain dominant in their markets. Research analyst from morningstar joins us. Think tencent and alibaba, despite having putback, are fairly valued. That just reflects the fact that the tech sector as a whole was slightly overvalued prior to the selloff. A pullback,y to see but i think the main thing about these companies is we have regulations coming out that essentially assures they do not take advantage of their situations, but weve also seen they have established such a Strong Network as it is, and that network of customers and , thaty to generate sales is what is going to keep merchants on their platforms, and thats part of the reason ratingstill have these on both companies, and we think they will be market share leaders for the next 20 years. Rishaad on a broader subject, we have also these companies under the Trump Administration how does that evolve under a Biden Administration, and do you think things like tiktok and wechat made survive into next bans and these bands on, for instance, tiktok, will be there in january or february . I would say the key difference between biden and trump would be biden has a much more multilateral approach to international agreements, and i think he has come out strongly in the campaign to say that he the tone. It could lead to more negotiations before we see any repeal of the china tariffs. Having said that, in terms of ban,xecutive order on the i dont think there is as much bipartisan support for this, and we have seen the judiciary come out with injunctions against them. Seem to be less of a National Security issue, so in i would think that if there are executive orders still in place when biden comes in, they could be canceled under a new administration. Rishaad when we look at the Technology Universe in this part of the world, what companies are you liking and which are the ones that you are not . As i mentioned, we did see the tech sector as slightly overvalued prior to the recent pullback. Just slightly over fairly valued. It comesse of tencent, we wouldhe 505 level, still be buyers, but in the meantime, on the 5g front, we do expect infrastructure demand to those. Y boy buoy haslinda in the broader market, valuations seem to be overstretched. How much more upside is there, given that we have not seen the end of u. S. Elections . There are lots of risks still out there. Yes, but i would say i think the rotation into the cyclical we actually have not changed our view that we expected it to be lower by the middle of next year. There are other vaccines that do not have the same logistical challenges as the pfizer one. Whatever it is, we do expect the continue through real estate and energy, which have then heavily beaten down and remain a significant lag to the rest of the market. Because of this, we actually real estate stocks that we do prefer. The other thing is i think the china production story would still be in favor. The investment world still grapples with the virus. These are really stocks we think are worth picking up at these levels. Haslinda thank you so much for your insights. For our morning call with a look at some of the top recommendations across markets. More ahead. This is bloomberg. Haslinda a veteran investor says the dollars strength will determine the direction of the markets in the short and mediumterm, not the Global Recovery from the pandemic. He also gave this outlook for technology stocks. Bestmocrats will try their to raise taxes for the wealthy and the people invested in the stock market. With the change that has taken place the last few discovery of a vaccine that works that is, locating the picture because on the one side, we may be bearish with this president in terms of tax policy, but on the others, benefit of ag the vaccine, so this is a very happy scenario for a lot of people if they are able to solve this covid19 crisis. But nevertheless, i believe emerging markets will probably do better simply because the u. S. Dollar index is not doing so well, and a lot of these currencies particularly currencies in asia, in korea, taiwan, china are doing better against the u. S. Dollar. That will move people over into these markets and to other emerging markets. As you mentioned, turkey is another one that may see better performance. Rishaad i was thinking about this before we started this conversation and one thing occurred to me i dont know if this is necessarily going to turn out to be true, but i wonder if there is a sequence effect in terms of those likely to get the vaccine first. Im assuming that those are likely to be the developed markets that have the money to buy the vaccine and have secured the supplies. As a result of which, the economic flip is going to come there first. Is there a result in some emerging markets that they are not going to get the vaccine first, and as such, the economic consequences are going to remain negative for them longer . Their resistance to covid19 is higher than the developed markets, so i think there is a balancing act. On one side, emerging markets may not get all the vaccines they need, but on the others, they have much more resistance because of the younger population. Dont think the real picture is related to if there is a vaccine that gets speak. Oples arms, so to as more the picture of vaccine being available. That is what makes people very optimistic. I think the picture looks very, very good, beginning next year, as i mentioned many times, i think we will have a vshaped recovery, and i think it is based on the fact that these covid19 fears will be over. Haslinda something that happened in the last couple of days, in particular with chinese tech stocks, was the government coming out saying you guys are too big. What do you make of that and then the selloff . I think globally, there is the trend in europe and the u. S. , in china and other countries towards regulating these very big Internet Companies who have become very powerful and really have become powerful on the back of not being regulated in any direction compared to their i think thisso will continue. It does not mean these companies are going to fail in any direction, and i believe valuations will begin to trend in some of these stocks. Rishaad its that time of day, calls. R morning it to Sophie Kamaruddin for some of the notable recommendations this thursday. I think we have been watching for a central push higher in yields, arent we . Sophie we have not seen emerging dollar bonds even as you have seen u. S. Yields creep higher. They aremanagement, seeing bullish on em, so that will boost volume and prices of their exports. Ubs does see further em spread compression that could offset the impact of higher u. S. Yields. Shares joinedaba the bounceback in chinese tech. Sophie you have some investors giving a thumbs up. Theirts reiterating outperform rating on alibaba. Underscoring the durability of chinas consumer rebound. Rbc also highlighting potential from their foray into offline and pushing into the race face. Haslinda we are counting down to the mumbai open. What are we keeping our eyes on . Looking for the indian rupee to reclaim precovid levels. They are seeing it is ready to hit 70 by the end of march. Pointinge reason, they to oil prices. As for rpi intervention, they see that taking a breather. Ici bank having a different view, saying the rupee is overvalued. They expect to lean on the currencys strength. Haslinda a quick check of the latest business flash headlines has asked thener u. S. Government to take down the threat of todays ban. Tiktok says it is committed to working with washington but needs more time to ensure discussions can take place. The decision will narrow the advertising winter window for runup votes in georgia that may determine who holds a majority in the u. S. Senate. To markets,s go looking at one stock very much in the crosshairs of a short seller. It fell as 14 before recovering a little bit, questioning the accuracy of International Statements and criticizing a one billion yuan loan. Was called worthless in one report, that alleged they fabricated china harmony statements. Story. Ot more on that this is bloomberg. Rishaad this is the scene at the moment in mumbai. We have some very hazy start to the morning. The markets on tenterhooks as we await the star of the session, which is about 15 minutes away. The nifty managed to eke out another gain on the session on wednesday, which makes the winning streak Something Like seven straight days. The nifty futures indicating a fallback. Lets move from mumbai to new york because Karina Mitchell is there for the first word headlines. Karina we will star in your neck of the woods. Hong kong chief executive carrie lam says she supports the banning of lawmakers deemed insufficiently to loyal to chin. Passed a resolution permitting the banning of antichina lawmakers. Theune, beijing bypassed vote to impose tweaking security legislation on hong kong. I would not say that for members remaining in the Legislative Council [indiscernible] i welcome diverse opinions in a Legislative Council. Balancet the check and responsibility of the Legislative Council. That is clearly written in the law as the constitutional duties. All of those responsibilities have to be exercised in a responsible manner. It is turning into a replica of the police state, surveillance state in mainland china. I am afraid it is a reminder of the fact you cannot [indiscernible] we have seen today this nothing out of the last remnants of democracy in hong kong. Karina surging coronavirus reports have prompted new york state to close bars and restaurants at 10 00 p. M. Friday as u. S. Hospitalizations set a record. The u. K. Is the first european country to surpass 50,000 reported deaths while germany reports its highest fatality rate since april. Resuming trials of a vaccine. His firsthas held calls with political leaders in tokyo and seoul. A leader says he wants to meet biden as soon as possible. Korean president moon called for a Stronger Alliance with the u. S. And says they agreed to Work Together on the coronavirus and climate change. Financial markets in the philippines will be closed today as another powerful storm heads the philippines. Typhoon benko is the 21st storm to hit the philippines this year. To 50 miles gusting per hour. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Karina Mitchell. This is bloomberg. Back to. Back to you. Haslinda asian markets are mixed. Investors are mulling over rising virus cases. Asian stocks up. Flat by now. 184. 50. They have been rising for the last eight days. Global stocks above 70, suggesting they may be overbought. Look at the vix inching down. That now at 23. New york crude at 41. 73. The dollar in focus. Hovering close to two year lows. We have some resilience in the dollar. Surprising some of those who have said the green bag could see a slide. The rupiah easing today after a sixweek rally. We have a moment. One company certainly in our site. Tencent out with its fourthquarter earnings. Chinese authorities unveiled a raft of regulations aimed at writing in some of these big internet platforms. Lisa ling is here to discuss. What are you looking at when these numbers do come out . I think overall, we should be expecting a fairly stable set of results. We are looking at sales and Profit Growth around 30 . Maybe slightly slower than the prior quarter. Think the game business is going to perform quite strongly. We have data that suggests the game sales, mobile game sales will likely be on par with the first two quarters record high levels. Year on year, growth rates may decline. I think most significantly, we an looking out for improvement in the advertising business in the Third Quarter with Offline Retail recovery in china and things getting back to normal. We are hoping advertising demand should see substantial improvement, especially for media. What is front and center is beijings clampdown on fintech. What impact will that have on profitability Going Forward . Also, some people say that may impact the loans to the micro players, the small businesses. Yes. Regulations or the consultation paper that was released this week obviously caused a lot of turmoil in the market. If youve read it is a consultation paper. It is quite likely the fundamental impact is going to be minimal depending on the implementation and the market is more concerned about the uncertainty. To consultation paper aims limit the abuse of market dominance rather than limit our cap dominance limit market dominance itself. These Internet Companies really i think our natural monopoly think are natural monopolies. I think we should see this unfold, but in a less onerous way. Alibaba, singles day, blowout numbers. It says a lot about chinese consumption. As the locked down a really earlier on may have triggered pentup demand. What is your take . The number they released this not, 498 billion yuan is directly comparable to the numbers they released in the past years because the number this year captures the sales from the first of november 2 the 11th of november. Nevertheless, it is a strong the full you look at year g. M. V they did last year. Roughly 550 billion a month. 11 daysout 500 billion, ended november is a slow number. It indicates that Online Retail has returned to health in china post covid. It is probably indicative of a strong sales quarter for alibaba in december. Thank you for joining us. Haslinda staying on alibaba, we spoke exclusively to the Vice President and general manager about singles day and has outlook for the company and his outlook for the company. Chinese consumers are fond of foreign brands. Those from the middle class or people with strong purchasing power from deer one or tier two cities, they already have a big appetite for shopping. In light of the travel restrictions imposed by the pandemic, i think we can see higher enthusiasm for online consumption during this shopping festival. When you think we get back to prepandemic levels of retail sales in china . Perspective,bas we are not only looking at online sales by paying a lot of attention to offline sales too. The recovery in offline sales has been very good and has exceeded many peoples expectations. Offline has not reach prepandemic levels but it has recovered very well. For online sales, we have seen stronger growth in both Customer Behavior and ran participation. I think putting everything together, offline sales will recover to a better level in one or two quarters. If we only look at online sales, i believe it has already returned to normal. China has unveiled new antimonopolistic regulations. Many see this as a key change in the way the government approaches technology and attempt to rein in the power of Companies Like alibaba. What you think the impact of these rules will be . We have noted this new regulation over the past couple of days. I think lena will i think we will need to further study the draft. Should see later how we accommodate the regulation imposed by the government. I do not think this is a surprise. As you know, the Chinese Market is in the process of constantly regulating. Chinas government would like to regulate markets and engage in more Market Research in all sectors. Over recent decades, the Chinese Government has kept improving its law and regulation. We have been growing during this process. We have also seen changes in regulations around online finance, which impacted yt ant group and the ipo was canceled. What you think the impact potentially of that is on your business in the ecommerce space . The platform, we have been encouraging our consumers to be rational with their purchases on the bases of meeting their needs. Group vicee alibaba president speaking to tom mackenzie. Breaking news at the moment. It is the United States daily virus count. The covid19 number of cases has risen to a new record high, risen to 146 thousand 149. This in contrast to a record being hit in japan. Northern ireland is said to confirm more than 200 coronavirus cases. Broadcaster saying 30 more than 200 than 2030 cases. Haveop line seems to be we 146,149 new cases. A new record in the United States. Turning outndia is 20 billion worth of incentives to lure companies to make of their products in the country. This is bloomberg. Properlyindia has entered technical recession. The reserve bank saying gdp slumped 8. 6 percent in september, having collapsed 24 from april through to june. The government is to publish official data at the end of the month. The rbis says it expects to return to growth in the current quarter. Haslinda india is turning to factories to help reboost the economy. The government has approved a 20 billion Incentive Program targeting 10 sectors to make it more attractive for companies to make their products and of the country their products in the country. For more on this, we are joined by our south asia economy editor in new delhi. Why this incentive and why now . Haslinda. India has been trying for some time to become a Global Manufacturing hub, especially after the u. S. China trade were. Trade war. To make doing business easier. None of it had seemed to work so far. It found everyone from samsung to iphone manufacturers were lapping it up. [indiscernible] it is a gamble to see if people will take the bait. Would this set of incentives actually work . What with the package look like . Company starts out with manufacturing 100 funds a year and they scale it up to 200 the next year and so on, [indiscernible] that is how it works. Haslinda where has modi gotten so far in growing the share of the economy . We know he was telling about 25 . Came to power in 2014, he introduced a program that was to grow the share of manufacturing in the economy. It has not changed much. After six years, it remains around 16 . [indiscernible] you. Nda thank our south asia economy editor. Lets do a check on the india market. It is a mixed picture. Investors mull over the rising virus cases. India markets in the negatives. But a much all indexes in the pretty much all indexes in the red. This is on the back of the centex and the nifty having the longest string of gains in a month. Gauges aboveth board. We are seeing some selloff today. We have the nifty index down 3 10 of 1 . Still to come on the show, crash in hongler kong. This is bloomberg. Lets do a check. On the latest business flash headlines. A top official in vietnam is accusing netflix and other streaming services of failure to pay taxes. The minister for information told the hearing of the comets party that four streaming services are not complying with local content rules. The latest u. S. Coronavirus surge marks the nations most sustained increase in infections and it is poised to get even longer. Bidens new task force has a stark warning. A doctor says daily cases may top 200,000 in the coming weeks. On labor day,at we were at 23 to 24,000 cases reported each day. Now we are reporting over 130,000 cases a day and we are on our way to well over 200,000 cases a day. Our Health Care Systems are already overwhelmed in many locations and that is only going to increase as these new numbers add up. In sense already in the pipeline if we do not have immediate action for people to distance themselves, which i do not see happening. We are going to have a serious crisis, much more than we have had already dressed within the next weeks to months. Is it more serious and we have had already in part because of the numbers or is it because it seems to be so widespread . Going back to april here in new york, we had a center of it. A lot of the rest of the country was not affected by. As i look at maps of positivity, it is up across the country. This is what we knew would eventually happen. I said in march we would not have blue and red counties. We would have covid colored counties by the time this was over with. All we have tried to do is minimize the number of new cases and till we can get to a vaccine, which is still going to be well into next year. For the next two and a half to three months, we are going to be seeing cases all throughout the entire country. Rural, urban, north and south, east and west. That is the challenge of this pandemic. Now that it has had a level that is nationwide at the same time. That means all the resources we had available in the spring wave in april or the summer wave in july, that we could Share Health Care workers, right now, we need everything everywhere. That is what is adding to the challenge. When you say we may well be headed to 200,000 new cases a day, is that an editable . Is there something is that an editable . If there something is that an navigable could we change that curve know better what should how much further up could ago . At this point, i do not see anything in the short term that could change that. Pandemic fatigue has set in. We are seeing people who are going to bars and restaurants, weddings, funerals, going to gymnasiums. I could go down the list. That is all happening. Then i have the group that i called pandemic anger. A third percent of the population believes this is a hoax. You combine that with the increasing occurrence of indoor air exposures meaning we are going indoors for the winter and we know virus concentrations in rooms is much higher. You put that altogether, that is already baked in to what is going to be a severe challenge. In terms of adding us below 200,000 cases a day, that is not something i see that is going to happen immediately. It will happen if people would listen to what is happening. They see what is happening. Eventually, i think of enough cases occur in their own families and hometowns, they will see that. That is a heckuva price to pay to get us to that point. Biden Covid Task Force member speaking to david westin. Lets take a look at shares of a chinese auto luxury dealership. Plummeting after a scathing report over the companys financials. What are the accusations being leveled by this country . David the stock is worthless according to the company. The report is not very long. It is barely a page long. To summarize it, you look at three things. First, the shortsellers says the chairman stole from the company and that they essentially went through things the phrasing here is they used tax liabilities transferred to raise effectively the obligation of the chairman to pay the company back. The second allegation here is the Company Generated cash flows through what i would imagine looking at the phrasing here is a fake share sale. Three, they lied about their profits by failing to consolidate expenses from their other units and failing to write off losses from that investment. As the shortsellers says, shares are worthless. When you look at the financials, do not trust those numbers because of these three big items. What are we doing now . Five minutes to the close. Down about 12 roughly. Haslinda this is the luxury auto dealership. What else do we know about the company and have we heard anything from the company . David we have not heard anything. I would imagine we might quite soon given the gravity of these allegations. It is not a small stock. We are talking about 4000 employees. 100 million in annual profits. It is covered by the likes of goldman sachs. It is not a small stock. I would imagine this gains a little bit more traction. Harmony is also an after Sales Service partner of no other than tesla. Back to you guys. Rishaad Bloomberg Markets china gles. Anchor david in glac have a turnaround story taking place. We had a muted start of the session. We are seeing a swerve of the markets. Family in the red. Sti one third of 1 . We have been seeing a move back into some of these tech heavyweights. Including the likes of alibaba and tencent. Jd. Com, 7. 9 to the upside. A reminder for you that bloombergs new economy form happens next week. It brings together Global Leaders from east and west to find Common Ground on shaping a new economy. Are you frustrated with your weight and health . 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Emily im emily chang in San Francisco and this is bloomberg technology. Fresh off a political victory in arefornia, lyft riders slowly coming back after the pandemic decimated demand. How the companys delivery plans differ from uber. We are going to talk to the cofounder of lyft coming up. Plus, yelp shares shot up on