Transcripts For BLOOMBERG Bloomberg 20240704

Minutes. We will be talking about the banking space in china and what worstCase Scenarios might look like. On the back of discussion on how they deal with local government finance. It is part of unlocking the narrative in china. Session highs on the benchmark, should be day number seven. That should be the longest in about seven months. 171 right now, we are breaking above the key that should be the top end of the range. 4649 the hstech index. This rally certainly continues the risk on mood. More earnings and more bank decisions. Rishaad just under two point five hours before we get the latest rba decision. Overall, it is this rally we are talking about and it has been predicated upon the hope of stimulus, the announcement of stimulus moves. Michael says there is very little in this. He sexually not deep enough essentially not deep enough. Not giving any real practical moves to do so in terms of fiscal space and that what really needs to happen is disposable income needs to go up which is notoriously difficult for them to do. Japan struggled with that for years. David it took them what . The better part of the last decade and a half of extremely aggressive Monetary Policy from the boj. We will talk about that in just a moment. The worst two days for japanese bonds. Commodity markets also. We are talking about that too. Oil, 85 on brent oil. This is what is starting to wake up. A big move in copper in shanghai. Iron ore is up. Chinese markets, what has led this rally, tech. Hedge funds that have been underweight have now shifted back to neutral positioning on china. Rishaad what we have seen over the last few days is this rally, certainly seeing money coming into the money, a lot of foreign inflows. That has to be something to be notated as well. When you look at the u. S. , there is certainly doubts about where we go next. Both bullish and bearish equity. David this market was offering value. Arguably talking about the Chinese Markets right now. Global macro movers, a little bit of weakness across the asia effects space right now. Lets get more analysis right now. Catherine is with us right now. A has been such a wild ride. July was such a diversion to month. A lot of investors very gloomy and then suddenly within the last five sessions things have turned around. We just showed hstech going into bull market. Onshore brokers also up 20 in a couple of weeks. Is it sustained or frothed is the strongest part of the debate right now. Rishaad Country Garden canceling the equity sale. That is affecting sentiment. Developers are slowly but surely moving out of the woods. I think this example with Country Garden, the property sector right now is very much one that is mixed. On the one hand, that gaetz was nearing the bull market in and if fizzled at the end of the day. Country garden was one of the strongest bets at one time. It is concerning. Property is not out of the woods yet. Getting ahead of themselves because of this expectation of stimulus. David the fact that we are talking about it. Thank you so much. Lets talk about the economy. It is somewhat confusing because there has been a lot of news coming through on china these last 2. 5 weeks. Lets bring in yao wei from Societe Generale hk branch. Does anything stand out to you . The most concrete thing has been the relaxation. We thought they would be inevitable. I think the removal of the sentence house and is for living, now for speculation concluded that housing is in a new phase and that they need to get rid of the old policy. The other stuff like consumption , same issue, there is no money in that. You cannot really encourage people effectively to spend more. I would agree, [indiscernible] the market was not convinced or listening. Now we just need the bottoming out of the economic activity. Rishaad to your point here, this document contained 20 points. Few references to boosting household budgets. Will not expend consumption at all so what wiggle room do they have . They do have always the options and the means. It is a question of willingness. It is always an option, but they do not prefer that. They still very much prefers supplyside option. It has been lacking until today. Rishaad where do we go from here . What would you like them to be doing Monetary Policywise . Given the amount of debt on the National Scale . Aside from the consumption stimulus, we think the more important thing to do is clean up the debt faster. This is where the meeting sent a positive signal that they are making a plan and they will adopt a series of measure to clean up the debt, but obviously this is not an easy process. There is some indication suggest in their check in the book of the governments. China can get out of this deleveraging problem faster than japan. It took japan 27 years. David what does the process look like to you . Apart from japan, we do not have a lot of recent precedent for this spot something of this scale. First, figure out the numbers. They need to figure out how much debt needs lower Interest Rate, longer maturity. It is a question of refinancing a big chunk of it. We think it is going to be inevitable they will have to do another debt for bond swap. State owned Financial Institutions can buy the bonds. A more difficult part would be the principal need to see some loss. Then it is a question of who will pay for this. It could be central government, it could be the banks taken a bit of a hint. With some time over several years, it is doable. David what does that allow them to do . Nothing that you have said so far seems to suggest that is progrowth. It is going to be lifting a pressure on the growth. If you let the Zombie Company go , at least not let them get away of crowding out more resource from the good private sector, that will be helpful. They do not have money to deal with their debt. Their conduct and fiscal austerity essentially. That needs to be addressed. They need to improve the allocation of capital. Rishaad when you do these things, you actually bring demand from the future to the present. That will have an impact on top of the growth projections too. They look like they are in jeopardy. The fact that they are unwilling to go big on stimulus is already showing. Which in a way as a positive thing. The structural question, without housing, what could be chinas growth . If you look at the past 10 years , if we do the math including spillovers, housing and infrastructure accounted for half of the growth. We have to lower expectations. David the other element we have noticed is they are bringing back the importance of the private sector and they are encouraging banks to provide more financing. What is tangible action . For the private sector, it is actually not the stimulus they need. It is fewer restrictions. The past three years we have seen policy that has been damaging for a couple of sectors. It seems the latest signal is that they are willing to reverse or lessen the pressure on the property sector. We are seeing some signs of that. That could be helpful. Still, it is a slow healing process. Rishaad please stay with us because we have a lot more to discuss. Not least of which is what happens with the reserve bank of australia. Hsbc out with its secondquarter results. He snores like an angry rhino. Youve never heard an angry rhino. Baby i hear one every night. Every night. Okay. Ill work on that. Save up to 500 on the new sleep number® smart bed. Plus, 60 month financing on most smart beds. Shop now only at sleep number®. You dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh rishaad all still yelled very much in focus. We are under 2. 5 hours to go before we get the Interest Rate decision out of the reserve bank of australia. We are looking at the decision well a strong labor market overshadowed the cooler inflation we have and prompt the bank to hike 25 basis points. Everything in focus there. Asx 0. 3 . We are getting more lines coming through here. I am just looking at my headlines. The nrdc is rolling out more measures. To improve the business environment. More details on that in just a moment. Lets put that back to the rba. Wei yao is still with us. Will be rba hike . If they do, will it be the last . It is a close call. Our call for this one is no hike. But if they do, it will be the last one. Look at the balance of things, inflation is slowing, not enough, but growth is slowing as well. The rba is facing the same thing of other big Central Banks. They are very much data dependent. They want to stop, but they cannot be too complacent about inflation pressure. David the rba is confusing today, but not compared to the boj. What did the boj just do . What was the objective and did they achieve it . They actually made a move to walk away from ycc. They effectively widened the band, but they want to do it in a controlled manner, that is why they bought the bonds. They do not want the markets to move too much. With the current fiscal year forecast, acknowledge and inflation is here. Acknowledging inflation is here. Rishaad they have been so concerned about upsetting the apple cart that they have been looking at this Monetary Policy like a deer in the headlights. Now that the environment has changed and they have the capability to do this, then they could incrementally tighten. If we are talking about hiking the shortterm rate, that is a long way i had. At the boj, we need a lot more convincing. We think it will be a slow process. Rishaad they do not expect any move on ycc until april. Would you be in that camp . You look at the latest move. They effectively widened the band to 1 . You ask anyone what is the fair value of the 10 year, i do not think anybody would give you a number much above 1. 5. They are not really too far away. They may keep the range for a long time. With this move, a much more comfortable position. It can take a bit of time to make the next move next year after they get more inflation data. David will they be able to raise Interest Rates . At some points, it is possible. The other question is whether japan is getting out of deflation. There getting her close to that point. It is japan, so it may still take time. David it is as close in japan terms as it gets. Thank you so much, wei yao. There is a rally taking place. We will talk about that in a couple of minutes. This is bloomberg. Rishaad tech side of things helping to lift the china related stocks. It just tech index only 2 up. Apples main supplier foxconn planning to spend almost half 1 billion holding two component factories in india. One of the factories will produce apple parts for iphones. It is part of a plan to diversify its supply chain away from china. We expect a formal announcement as early as this week. Exxon in talks with automakers about supplying lithium batteries. Also having discussions with samsung. One of several oil and Gas Companies seeking to expand into lithium reduction to take advantage of surging demand in the ev space. David we are looking at tech. I am not sure why we are looking at alibaba. The big story across tech come out with some earnings today. The under current dictated by policy. The ndrc rolling down measures to improve business environment. Theyre talking about loan support to businesses, so this credit enhancement tool that finance institutions. Earnings to tell you about, toyota. We are moving into the thick of it as far as hong kong is concerned over the next few weeks. On the other side of the break, we will get you i dont want you to move. Im gonna miss you so much. You realize well have internet waiting for us at the new place, right . Oh, we know. We just like making a scene. Transferring your services has never been easier. Get connected on the day of your move with the xfinity app. Can i sleep over at your new place . Can katie sleep over tonight . Sure, honey this generation is so dramatic move with the xfinity 10g network. 30 in tokyo. We have problems with the nikkei. Just about. 75 . We have more and more companies announcing upward revisions according to the chief strategist asset management. That is coming in and they are helping to support the market as it were. We have that and the yens weakness as well. Also, bullish sentiment in the u. S. Lets have a look at overall markets. We are seeing the following from the bank of japan. Lets get to singapore with a focus on financials in tokyo. Cracks he has. As you say, we are seeing that focus on financials in japan. There is loss to disaster. Investors are keeping a close watch on the doj. We did see japanese lenders giving up some of the gains from the past few sessions. They report their profit be yesterday. It is, uft that we are having today. Expected to show that it is making some progress toward annual net income. It is not just the japanese lenders reporting today. We have hsbc. Lets look at the best of the region. If we could just pull out the charts here. We are seeing hsbc hovering near a four year high. It is expected to show it is benefiting from that rising rate environment. Housing tech is a key want to watch. It is firmly in our market. The hsi also hired by touch. We are also in the watch for the rba. We see the aussie dollar movie more against the greenback as traders are still split on whether or not we will see a hike. It is going to be exciting. Exciting and certainly the takeaway so far, the takeaway is if they do move, that will be the last one. What is starting the process as far as titan is concerned is argument of the doj, they to perhaps the most meaningful step in that direction on friday. Because of that and after that, we conducted a survey that does not seem like economists expect any further steps out of the bank of japan. You have april, the timing for the policy change. A lot can happen between now and then. They are suggesting they see 10 year bond yields just settled at about. 7 . The yield did jump above. 6 on monday. Can you imagine having that sort of Interest Rate for that length of time here and we have the bond buying here. That was something that was caused by the moves on the bond market. We have the holding debt in japan. Way do we go from here . This is the point. Lets have a look at the topics here. The banks of the highest in 2015 at the moment. As quickly have a look at that. Lets take a look at these Financial Institutions in a bit more detail. Near 15 year highs approaching the 2015 peak. We also have them post in the gourley profits ahead of this. It is projected to deliver results as we get a little bit more juice on that. How has the policy change really affected but these shares have been doing . How do they also dovetail into these earnings announcements . The bank of japans policy change has posted bancshares since last week, the best performer since then and we have seen earnings from two of japans three biggest banks today. Their shares have retreated a little bit today. They are affecting some caution. You can see most do not for they do not expect for the policy change. The yen has come down quite a bit. They will curb rises in longterm bond yields. Having said that, it is quite clear that any rise in bond yields an interest is going to boost Bank Earnings going forward. The question is how long does the support last . That is probably the most important part here. People are not buying this just because earnings this quarter or next quarter are going to be better than expected. It is a bigger story than that. If inflation will take hold in japan, that is going to be a major boost for Bank Earnings. For a long time, i have suffered from inflation, disinflation. Nobody wanted to borrow money. Suddenly, if you have inflation, it does make sense to borrow money because the real value will get cheaper. Defendants have been rising. Rising at the fastest pace in many years. While the jury still out on whether inflation is really taking hold, there is good reason. Some investors believe inflation may be banks are one of the biggest beneficiaries. Thank you so much. Talking as through the broad implications. Almost philosophical implications of the presence of inflation and an Interest Rate in japan. Also in focus and about 90 minutes from now, hsbc will report from the bottom of your screens. Lets find out what to expect and bring in the china and hank China Hong Kong banks. Hsbc, what are you expecting . I am expecting a quite decent outlook for the second quarter. That is in line with expectations. I think we can expect the hong kong want to recover. We do show some recovery in the second quarter. I may expect this a little bit higher than the First Quarter. And of all i am expecting on the on your profit gross, the improvement should also be there is a chance that hsbc will revise up for fi 23. To a target . Maybe like 15 or 14 . Across the question for investors is what to do with the money . In terms of buybacks. Giving money back. I think maybe some Share Buyback has been discussed. The First Quarter was out. On the div inside, i think the dividend policy was about a 50 payout. I think that will not be changed in the near term. What about the nearterm part of the conversation . I think the conversation has been a bit too long. I dont think they will get there target. Firstly, they need about 75 of the shareholder approval. They only have about 8 by themselves. Since that other major shareholders, they are not supporting the proposal. And for hsbc itself, these things may lead to additional costs. This is a unique position as an international bank. I think hsbc does not have the incentive. I dont expect they will do this at least in the short term. Looking at the outlook. Maybe the next quarter or the next half, Interest Rates may be high. They may start to fall. What is your outlook . I think they have already enriched for the banks. My expectation is that in the second half of the year, if we look at fy 23, this could be a few bit lower. This could lead to the rising founding cost and migration. The interest upward cycle is coming to an end. We may see more downward turn in fi 24. , current target price is about 64. 8. It was a few months old. Published in february. What are you looking for specifically . What would move your price tag . I think the key thing i will be watching is the improvement. That is the key thing, to drive share Price Performance in the past few months. I think that is what investors are mostly concerned with. You are not spinning off the asian part and you are doing international business. Candace to achieve a very good return for the shareholders . I think that is a key then we have to watch. You also cover mainland chinese banks. Recently, the market to this group of stocks like a policy tool. This is indepth policy. And i am wondering if you think at the current levels of stocks, do you think the market has fully discounted the cost of saving and supporting the economy . Lower rates, perhaps discounted loans to the private sector . Local government financing . Christlike to be banks in china, they are trading at 0. 3. I think that is already flecked reflecting most of the negative outlooks. It is already in price. It is already near the historical bottom for china. If you look back in the Fourth Quarter of last year, we see this training at the historical bottom level. You look at that time. We are worried about the china Public Policies of the lockdowns. We are worried about the suspension of mortgage and we are worried about the china property sector crackdown. Do a little better than what was on in the Fourth Quarter last year. At this valuation level, it already reflected. One of the topics of conversation along the same lines is the lure of chinese banks was the dividend payout. I wont name the other bank. He was actually five the possibility that some of the payouts. Risk. Do you think the other payouts of these chinese banks electives as far as dividends . I dont think they are a very high dividend risk. We also do some analysis on the china lgf three. In our base Case Scenario analysis, the chinese china back profit will be impacted by 6 and the others down by 0. 5 . If some of them need restructuring. In the base Case Scenario, i dont think that is the dividend payout. Of coarse, there are chances for the worstCase Scenario. I think the central element will try to solve the issue if the situation comes to the worstCase Scenario. We will be breaking down those numbers for you. We will be joined by the ceo of the bank. Noel quinn will be joining us. That is about two hours from now. Stay tuned for that. You dont want to miss that. We will be looking at the future of chinas developers in the property market. A deeper look into that. The government signaling enough to revive demand. And we will do that enough to boost the economy. The chase ink business premier card is made for people like sam, who make everyday products, designed smarter. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. Thanks angrily coming off the highs of the day. Tech also likewise a little bit of consternation behind what the behind what they are doing. Down to them trying to revive growth as there are signs of economic downturn. Off the back of decades of supercharged growth. We have seen it in Greater China senior executive. This was supposed to be the year that chinas economy came roaring back. What we have instead are signs this economy shrunk. Would talk about why the economy is slowing now, there are three things. One is the problem with the Real Estate Markets. The government identified there was a bubble in property about two or three years ago that started to take steps to try to deflate that bubble. Now you see a drop in home prices. The second point i would make is about confidence. When those prices fall, they are feeling poor. The third thing i would point to his debt. There is way too much debt at the local level. The government is looking at new ways to get the economy going. That was the report from john leo in beijing. It takes us into what the crux of the slowdown looks like as we look into the crystal ball. What does this matter . Crux a lot of the developers are not going to survive. The reason is that they went national. You cannot back on local governments to help you. I think in five years time, there will be very few National Developers left. Many thought they were too big to fail. The deal is they are definitely not too big to fail. Since we are talking about Country Garden, the newsletter today is the shared put the shared placement that was pulled. They managed to get their sales through. What is your theory . Crux there is another developer also doing share placement. That just shows you how fragile this Market Sentiment is. Investors are just by, hoping the consulted state or tomorrow. Crux you dont have the dent in the market not to have two coming to market. Thank you so much. That was the latest idea that a country pays. As far as turning it over is concerned. 20 more ahead. This is bloomberg. But everyones looking at their phones for Financial Insights from merrill. Is he hailing a ride to the concert hall . No. Hes making sure his portfolio and retirement plans work in harmony. They want to adopt a child and build a new home. So theyre talking numbers with their merrill adviser. Shes not researching her next role. Shes learning how to handle market ups and downs without the drama. Personalized advice so impressive your money never stops working for you with merrill. A bank of america company. 76 of 23andme Health Customers surveyed reported taking healthier working foactions. Th merrill. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. I need it cool at night. You trying to ice me out of the bed . Baby, only on game nights. You know you are retired right . Am i . Ya save up to 500 on the new sleep number® smart bed. Plus, 60 month financing on most smart beds. Shop now only at sleep number®. Look at economic numbers. Exports are actually down a 10th straight month. That goes to the domestic store in china. They were a big yesterday. The up still today. We will watch this very closely. It takes us into one is on a benchmark level a day seven. If you clock the same, we will clock in the longest the longest one. Crux we get that rba decision. They destroy dropping back against it. At risk of a postlf. On the basis of the bank has for you. Some of the National Demand there. We see them granting hire an earlier. This is very much in focus. We have this decision on a knife edge. Looking at a dovish 25 basis point hike. That is what your macro move has looked like. The hang seng giving up its gains. Looking at the sx. That is to return to the upside. The first time your sales reached 100k with godaddy was also the first time your profits left you speechless. At the counter or on the go, save 20 with the lowest transaction fees and keep more of what you make. Start saving today at godaddy. Com it is almost 11 00 a. M. In singapore and shanghai. Welcome to Bloomberg Markets asia. I am has lender. Crux this is a look at our top stories. Most energy is making gains. We are now 1. 5 hours away from the reserve bank of australia. Chinas factory pledging back and contraction territory. Sales tumbling the most in a year. That as beijing announces new measures to boost private credit. Plus, we will check in with the progress on indias clean transition with a Government Agency tasked with auctioning the Renewable Energy projects. Asia has given up most of the games but it is still in positive territory. Of for a seventh straight day. Police for its best run this year. Investors focused on the economic play in the world. We have china promising more stimulus today. It will and boost the investor environment and the fed. We had the fiancee there is no recession and we have a eurozone revising the negativity currently back in positive territory in terms of its growth. Take a look at where we are in terms of this. We have the index in positive territory as we count on to the rba positive. They expect no move from the rba. The consensus is that this could be the last move by the rba. The swaps market no longer fully pricing in a hike. The csi 300 index revising gains for the day in negative territory right now. Down. 3 . Where the hsi is right now, currently inching slightly in the positive. Revising the games. It went up as much as 2. 5 in Borough Market territory. We are keeping a watch on Country Garden. This is something that this is a stock that slumped today. Suggesting negativity in the Real Estate Market is still not done yet. A lot to do with the dollars drink. The lawn could be down. 4 . Front and center, the rba. What will they do . Wont it heightened today . Just under 1. 5 hours and we have another central bank in focus. That is tomorrow and wednesday. They are expected to raise Interest Rates by 25 basis points. 2. 25 . Looking at that as we see them stabilizing his head. Some news coming out of there. Maybe just getting some light at the end of the tunnel. They are planning a new coalition. We looking at that and perhaps this current account surplus coming up at 81. 5 billion. Looking at india, we have a rupee. Nifty futures trading flat as we get a raft of earnest coming through there as well. Watch out for some of these bonds. There werent they were renewed inflation concerns. Cmc markets, good to have you with us. We keep hearing from china that it will support the market. Today he talks about boosting investment environment. But collectively, is that even enough to be sentiment in the Chinese Market . Crux there was a lot of talk at the moment. But the actual action taken by the government is not enough. Well see stainless into the manufacturing and also, it is the real estate sectors which will really give that boost. We need to see that demand flow come out of china which will help drive them out of the postcovid recovery. And then we will see some of the global economys pickup like australia. Former investors have been buying. They have been public seven or so billion dollars in the past five days. They see value in some of these patter down stocks. But i think what they are trying to do is trying to get ahead of the curve and maybe sort of call the birth of the Chinese Government in terms of when they will act in terms of their stimulus. They are looking to get that price value locked in. And when a decisive move is made by the government, they will take advantage of that upside. What is the rba going to be looking at in particular . Will they be looking at the tightness of the labor market for one thing . We have housing approvals. It was better than expected. A contraction of 7. 7 . I think that is probably one of their main focus areas. One of the sector that has been impacted so much. Housing stocks in australia based on the fact that we have had that rising Interest Rate environment. Record 13 in a row. Speaking to people on the ground. What friends are saying is it is difficult for existing hornish. In the new homeowners trying to work into the market. That is something they need to consider. The nature in which they hike. I can still only see probably 25 basis points today. They really need to be cognizant of how quickly or if they just get over and done with and stop the bleeding earlier rather than later. Perhaps a case of clearing the decks with the new central banker coming in. Exactly. That is an interesting one. For any sort of people back home in australia, they are hoping for some sort of change. She was obviously in understudy to government alone. What we will see is maybe a changing of the guard. She does inherit something of a difficult task to enable this soft landing for the economy. Whether or not we see a rate hike from the rba, i guess the main theme is that all sorts of banks in the world are close to the tightness cycle. I think they have all followed suit from the states. One thing that is quite interesting is that we are seeing the relative economies coming to the end of their rate hike and cycle. Inflation is calling but some of the emerging markets have benefited during this time and we have seen this dislocation during the markets and the developing markets. They have ashley benefited. High term inflation has been a lot steeper. They are getting back in line and getting ready to do business again. When you take a look at the s p, what a run. When you look at earnings, you actually justify the rally we have seen. How much more upside . That is where i think investors are still going to continue to get into the market. Everything is lined up at the moment. Although valuations are sky high. That is actually moving in correlation. I think there have been a couple of additional factors. They correlated nicely together. I think a lot of Hedge Fund Shorts are having to unwind their short positions. That is creating a celebrated price action. We actually see a lot of retail flow. We are seeing is a lot of people quite reticent to the meme stock year, getting back into the market for fear of missing out. Although things aligned are driving markets. What kind of correction are you anticipating . I am pretty bearish in the sense that something has to give at this moment. I am looking at probably around 20 for q1 2024. It is a big call. I get it. Something has to give at the moment. The equity markets will drop off. I think we see flows going back into commodity and energy. This is the key driver. This is when it is coming from. It is a situation where they are almost now Going Mission accomplished with regard to inflation and Mission Accomplished with probably a soft landing or no landing at all . Are they getting a bit complacent . The positivity around the market at the moment is it is probably very easy from an investment standpoint but also from a consumer perspective to really look at the positives only. I do think we need to be realistic. This market has been going high for a long time now. Just to back in line a little bit. Not to say was that correction happens, potentially make you for, we could see a leg higher but it is really just to stabilize the mark at the moment. Ads want to go to another rate decision. That is thursday, the bank of england. A lot on his plate. Hasnt he . Absolutely. Being in this part of the well, you tend to forget some of the headwinds that europe is facing at the moment. Looking at inflation, they are extremely elevated and historical levels. If anyone has a tough job in terms of governors and model military policy, i think the does really facing a lot of headwinds over there. A soft landing would not be a term discussed over in the u. K. At the moment. They are trying to get out of the woods really unscathed. It is probably one of the most difficult economies to manage at the moment. I really think they will need more hikes than anyone else. I am looking at oil. At 20 jump in the past five weeks. Like i said, i think just mentioned previously, i think we will see profit coming up the equity market. That is coming to the oil and Energy Markets. The current one has been driven by a higher technology. What i think we are seeing in the last month, consumer cyclicals and also Energy Markets have started to bridge that gap. So they are looking at that as a broadening of the run as opposed to having this concentration risk in terms of ai intact. My view is that those markets will continue to go higher into the latter part, probably looking to reach those projections of 8,485 per barrel. Thank you so much for that. Still to come, we speak exclusively to malaysia deputy economy minister about the tenure plan to reset the countrys growth trajectory. They are joining us exclusively. This is bloomberg. The chase ink business premier card is made for people like sam, who make everyday products, designed smarter. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. Sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh did you know you can get someone to shop for you . With stitch fix, it couldnt be easier. I share my style, size and budget. And they shop just for me. My shopper sends me stuff i feel good in. I keep what works, and send back the rest. Stitch fix. Southeast asia markets, a pretty mixed picture there. Malaysias government has unveiled a roadmap to reset its economic trajectory. The tenure plan involves lowering the budget deficit and boosting growth to 6 in the short term. The economy has been expanding in a more moderate place in recent months. Lets discuss this with the dippy minister for the economy. She joins us exclusively. Suggesting that he wants malaysia to be the top one of the top 40 economies by the turnofthecentury. Just wondering how you get there when the growth strategies, the growth plan remains the same. You have to make a couple of changes we feel are not working as well. Things that work and things that dont work. We reduce it. For one thing, we have learned we have to make sure we secure our securities. We have to make sure we find practical ways to increase our efficiency and of coarse, we want to try to produce reduce problems that have been obstacles that makes us function as best as we can. So looking at all of that and making sure we run as efficiently as possible would be very important. Chinas is malaysias largest trading partner. Are you assessing malaysias exposure to the Company Given that it is struggling with this recovery. It will take a while. We have our partnerships in china. We are going to make sure that if we come for obstacles, we can work more efficiently. It is always making sure we have good communication in a way that is more effective on both ends. Looking forward to try to make it more efficient as well. How ultimately do you involve the private sector key to her . How do you marry that with the Climate Change imperative . How will the qwest tort get the country more and more be carbon as it involve the private sector as well as you guys in the Public Sector . The main thing has to be in terms of awareness, we have joined in terms of the United Nations as early as 2015. And then after that, we realized the way we have been doing things traditionally, that is not necessarily good. We are adapting changes. We are talking to the private sectors. The private sectors are a large component of how the country works. By explaining to them, getting them alone together with the intention to meet make us country better, we have to make sure we always have open session dialogues. Given collaborations if we need to do joint ventures. If there are things they are experts in, why not bring them along to make sure they are a part of our world . Initiate what is needed for the economy. We want to follow through with the policy, not leaving anyone behind. With the private sectors, and initiatives, together with private companies, we are talking in terms of making sure that the Onboard Technology that would help in terms of improving livelihoods but also the impact is much better. For the environment. We also have collaborations with nestle, asking them to help us with helping with the Poverty Initiative by taking out the kinds of Agricultural Products we intend to do. That is very important. Does this impede your Economic Growth . Does it actually assist in looking ahead . We need assistance. You cant assume the government has all the right answers. All the right things to do itself. It needs the private sector and United Nations committee is one of the ones that has done the networking and have also taught in terms of the private sectors the kinds of things they can do in order to make the most sustainable and practical. It is good. I am taking a look here. What are you how are you assessing the strength or the lack of it . We do need to improve but it is not just one sector we have to look into. It is multiple and the confidence of investors as well as that is why many areas we feel have not performed as well, we need to improve it. Of coarse, it was like a little bit longer. Overall, with the economies of the world, it is not going too well. We have to make sure that it is also important that we do not leave behind the importance of our people. Crush the question is how much can the malaysian economy qwest diversified . This is why we want to make sure we follow through with the strategy of structure plans. That is where it is being laid out in terms of what kinds of industry we are doing to improve it. And the kinds of things we want to shift away from. We do that as well. Close great having you on the program. Thank you for joining us. A lot had. The key is something working lurking in the data. Find it is after this break. 76 of 23andme Health Customers surveyed reported taking healthier actions. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. North division markets have been swinging between gains and losses. They are up by one. It opened the day higher by about 2. 5 percent. Theres been a lot of optimism. Foreign investors have been coming in and buying chinese stocks in particular. Seven dollars worth over the last five trading sessions. The index is under pressure at this point. The last 24 hours has seen these economics economic numbers slightly hidden across the data. What we have had is hong kong gdp, has the second quarter. We found the sets of emi numbers out of china. This was out about 1. 5 hours ago. When level beneath the hood and he signaled a fairly consistent victory here. External demand is met. Whether you look at new export orders in the official gauge. 46 in change. The own measure of that is at 10 month low. The culprit out of john on the g to be was quite substantial. The shamans were falling double digits. Korean experts, fairly straightforward. More than estimates down 15 or 16 . Down 10 straight months as far as that is concerned. Maybe Central Banks were pivoting at the right time. Qwest will give you a couple more stories we were watching for you. John is seeing a red alert for flooding in the southwestern suburbs of beijing. It is an orange alert. The secondhighest warning. State media saying the two people died in the floodwaters is the remnants of this typhoon that lashed the northern part of the country. As such has called for to fund cash payments. They considered whipping out their digital token ftt. Almost every credit of the class has been deemed impaired. Class in the markets, china front and center, training trying to allay concerns and boost credit to private companies. Chinas cabinet urging cities to rule out property policies in the hope that they will help support those property plays. They are under pressure. Down about 6 right now. Down over 10 early today. That is on the back of reports of equity sales at an 18 discount. That shows the rows of property plays not yet over. Here is how it looks in terms of hs 10. A more than 2 right now. At one stage, by about one. Plenty more ahe chris we are seeing these trends related equity is just falling off the highs. Perhaps there is a little bit of skepticism here. All of the stimulus efforts have been announced. Officials announcing highprofile press Conference Promoting a key policy document increasing consumption. My competitors clearly have a few references boosting has all budgets will be key here. Most of the information is designed to consume curb consumer spending. We are certainly coming off the highs of the day and the week is creeping in. We have a dollar also. They are up for lunch. Japan and tokyo traders returning from theirs. That is right. The nikkei 225 running high. Investors taking that lie sisi tweak in their strike. The nikkei fear gauge at a two month low. Look at that. The nikkei to 25 in positive territory. We are getting a watch on the end, continuing to be under pressure on the back of the bl j. Buying bonds in response to yields getting close to 26 . The topics up. 3 . Now, to the india focus. Looking ahead to some key stories. Investors are watching in india today. Placenta reese manufacturing pmi data. They will report Monthly Sales as well. Pvr i knocks are among the big names reporting their quarterly financials. Qwest and are planning to cap the bond market there in india. They are watching Something Like 1. 8 billion. It is another move to shore Investor Confidence. The january hindenburg report. Can we say they are back in the market for fundraisers . Is this a confidence Building Measure . We can look at it two ways. One is restoring confidence. That is after the hindenburg report. Now they have confidence from investors. They have also got a highprofile line on lenders for financiers and a Green Hydrogen product. In other words, we can say they are getting comfortable. Now they are leveraging that kind of comfort. This will be in small lots. Most of them will be listed. They are trying to alleviate cash sentiments. Close fantastic results. Close Investor Confidence will come back because they are waiting research. It is a classic example of the 50 increase. As you rightly pointed out, investors can connect for the investment by total gas into the company. Plus they managed to raise money. Cross to put this into perspective, data that. Some big names, big financiers. They have already lent their name to this. One is given kind of a boost. All caps on the distracted after that. We can see these strategies in the market in the coming days. To come, no exclusive interview with indias chairman. More about the governments progress on the transition to Renewable Energy. Keep it here with us. This is bloomberg. About eight minutes to the start of indias trading day. Investors are looking at the rba will it wanted. It could be the last one in this tightening cycle. A look now at indias Renewable Energy options which is seeking to triple in order to meet is 2030 clean power target. How is it looking at this point in time . Good morning. In terms of Renewable Energy options which is wind and solar, india has been doing eight to 15 gigawatts. Together, they have to talk but at 50 gigawatts this fits this fiscal year. That is the big jump. Going from 10 to 15 gigawatts. That is the scale of ambition the government has for this fiscal year. , tell me, how has the Renewable Energy what kind of volume has this been for the year or the fiscal year even . One of the good things with the Renewable Energy options is they have been very transparent. They have been open to participation. The benefit Indian Companies is it has brought in a lot of investment for foreign investors. We have seen a lot of sovereign wealth funds. Investment funds, this has been the success of the auctions. India has not always had Great Success with auctioning off things. If you look at the telecom spectrum, it has Renewable Energy options that have been a success so far. They are planning to do 50 gigawatts this fiscal year. That is a big jump. There is something theyre looking forward to to see how this goes. Close your been talking about the large increase of annual auctions. Plus there are certainly diverse. The risk is once you scale option so much, you run the risk of not having enough participation in those options because now that is enough for everyone. When you go to 20 gigawatts every year, that really pushed down the prices of energy. They made a competitive, it allowed the power to distribute. Once you are going to 50 gigawatts, the risk is you wont have the same level of competition and therefore, prices are not pushed to the same extent. You run the risk of not being competitive enough. That is something we will be looking at for this year. Quick thank you very much indeed. We are now looking further into what is happening in this transition. The solar industry, critical junction points are being made into critical players globally. The four agencies tasked with auctioning for noble projects which this art is already a key part of engineers clean energy plans. He is a chairman at md. An officer at energy core. This gives a sense of the landscape and what youre doing right now and why we are at this critical juncture in your view. Cross india has been difficult to detect. The sector is nothing new to me. What i am having currently is the Renewable Energy. We devised systems as the old lady said it. We will be scaling it up. This will ensure that we will get into the promised core which is the 50 print is 50 of the total capacity. That roughly translates in and we will not only be doing it. How do you make Renewable Energy attracted to power and utilities . They need to replace their fossil fuel capacity. They need to have a ready, guaranteed supply. Do they not . Because it had plenty of this energy. Now, we are owed 22. 5 of our energy. Looking at this, we have the solar energy. We are also experimenting with new programs. The country is determined will have to do this. That is why we are now able to produce different kinds of products. This becomes the foremost in the supply. Fortunately didnt have to displace. Quarks talk to us about the innovations to lead to emerging needs of customers. Quarks that is what we are doing now. Meta that is what we are doing now. We are exploiting those. And we are setting up the systems so that kind of Energy Becomes the common energy. That is how we are coming up with these products. The energies you are talking about, will it be affordable . As key that is key for decarbonization. These are not any kind of particular energies toward the best toward the system. We will provide the energy to the system. The systems are currently costly. That is why the system will be costly to build at first. The cost is likely to come down. What about hydrogen . How are you dealing with that . Depending on the market situation. Thank you so much for spending time with us. We are counting down to the annual here. It is an official side event in Energy Transport finance and government to shape a cleaner future. We are four minutes into the trading day in india. We are pretty flat here across the board for the benchmarks. We are looking at the s p global policing the manufacturing pmi data. There are sales figures and a bunch of earnings as well. These are the big names reporting. Keeping tabs on that, giving tabbed keeping tabs on the overall regional markets. A rather big bank as well in asia reporting. This is bloomberg. Rry about things like changing tax rates or filing returns. Avalarahhh ahhh hsbc set to report secondquarter results with the potential for a fresh multibilliondollar buyback as rising rates boost bank profits. Lets get a preview from russell ward. Expectations are pretty high. Because that is exactly right. Expectations are very high. Well find out in a few minutes whether those expectations are to be fulfilled. Analysts are expecting profit to rise almost 60 to rise almost 60 8 billion. That is on the back of the Interest Rate environment. The benchmark rate and the highball rate has been soaring to multiyour eyes. That is improving at interest margin. That is feeding through to on equity. Having them an extra capital buffer with its investors. We have this all Buyback Program of multiple buybacks in consecutive quarters. They have the 2 billion buyback last quarter. Another expectations for another 1 billion buyback. This is a positive earnings environment. You would expect that for hsbc. It is looking to be showing the benefits of that. Like others, hsbc has this really good net interest margin. It is depositors and how much he gets out of loans. That is something that could be a downside looking ahead. What about other downsides for the bank here . Buybacks they seem to be parentally doing buybacks. That is what we would be hoping for with other investors and Retail Investors in hong kong that have very high expectations. Looking at the Bigger Picture for the potential downside for hsbc, i think it is the macro environment. The pivot to china. China is the biggest market for hsbc. The recovery there is losing steam. That is one issue. The property slow is getting worse. Hsbc has flagged potential bad loans in that area. The other macro Downside Risk is back on and u. K. With the cost of living crisis continuing. Getting Interest Rates to rise. That is helping the sterling. That is panning out the profits a little bit more in dollar terms. And u. K. , there are other banks as well struggling with the potential for demand to weaken as the economy weakens there. Thanks a lot. That is russell ward looking at those shares at first for your highs. All this as we break down the numbers with the ceo of the bank, that is coming up in about 40 minutes as results come out mid day. We can also turn to bloomberg for more on those earnings as well as if you are a bloomberg terminal user, you will get commentary and it is now assistant from bloombergs expert you will get analysis from bloombergs expert editors. We have visx up by about. 4 . The aussie under pressure. It is a stronger dollar story. Yields are closely being watched. It is a task when it comes to economists. They are not sure whether the rba will hike at 25 basis points but when it comes to traders, they think we have the fed raising rates, the ecb doing the same. We are at the tail end of the tightening cycle. Were looking at the 25 basis points. They were looking at the tight labor market and really ignoring that softer inflation that we did get. We will be getting that decision in 35 minutes time. Hsbc at the top of the hour. Daybreak middle east and africa is next. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. 76 of 23andme Health Customers surveyed threported taking healthierrd from chactions. Business. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. If youre trying to get a view of the whole organizational Financial Health and youre trying to do that through multiple systems, that makes it very, very cumbersome. Its not just tech, its not just people. Its how they Work Together to provide that experience to the customer. As a finance organization that is what you want to do