Transcripts For BLOOMBERG Bloomberg 20240704

Last we checked. Markets are coming online at lake jakarta in the last hour. Taiwan, down one and a half percent. 19,000 on the hang seng index. It jakarta coming online as well and there is a lot to get through, everything from china, weakness across asia fx, 30 year bond option looking ahead to. The inflation print of the United States. What are you watching . Yvonne you talked about u. S. Inflation. It is interesting to see yields are lower on the back of yield options. Many were thinking this would be a selling week. It goes to show there is demand and it is looking solid overall. What fixed downgrade . It seems investors are overlooking that so even if we see in inflation overshooting if it is marginal maybe it wont change anything in terms of the bond rally. China is another discussion. Inflation, what does it mean for the world economy. Theyre going to be front and center to really engage where the consumer is. Rishaad growth in commerce revenue and we had four consecutive declines. This may have grown the but that could be offset if Consumer Sentiment remains down. And sony, perhaps a little bit of disappointment but on top of the earnings, we have the looming specter of the executive order. A little less aggressive or quite a bit less aggressive depending on who you talk to. Its not going to go into effect and will not be retroactive. It may end up exempting passive investments in publicly traded securities such as index funds. Relief with regards to that. Looking ahead to the cpi number and a few months down the road and what is this . What is this oil price likely to do . David its been pushing higher, you put that together with the food story that has emerged this week, we were talking about rice at 2008 highs. Inflation and how core sort of has crossed above what you are seeing as far as headline inflation in many parts of the world. Could we see a reversal . Central banks approach that conversation. Oil is paring back but these are year to date highs and they are playing ball and moving against the grain in these oil counters. Global macro movers right now, down on the benchmark. All her strength coming through, pboc stepping in with a sizable fix. At least variance to estimates. Yields are backing up and you can see theyre on your screens this happened very recently. The hang seng tech index formed a golden cross but we are paring gains. Lets bring in Mark Cranfield with us on set in singapore. Lets start with the tech index. Is it interesting . Mark we do not see many between the 50 day moving averages. When people are looking for anything positive on china they may pay more attention than usual. If you look at the price for the hang seng tech index, it has been grinding higher, not too bad if you look at the lows, it advances a bit, comes back. Overall last few months, fairly decent performance. Alibaba coming up today. Overall could be a decent performance. Other tech names as well. Maybe we have seen the lows for this year and if people buy into this golden cross idea maybe it will give more momentum. Theres more going on and other factors to fall in place but when people start to see price appreciation people want to be involved. Of course people must be pretty underweight with china tech. There has been so much pain, people might get forced into the market. Maybe today is the turning point. Lets see how we play out. David do you think the golden cross supersedes . Mark for the tech sector. The property sector is another problem and overall if you were invested in the Greater China picture overall, properties is very bad. Specifically for tech maybe we can get past it. Rishaad mark, your view of this fix that we had. A strong fix every day since june and this one, is it a message being sent by the central bank in beijing . Mark i think it is clear that the upper threshold around 7. 3 for dollar games is the idea. They want people to be clear but for the time being they dont want it to go anywhere near there, certainly do not want to go above it. They say weakness in the yen, dollaryen has been giving them a headache. Toward the 144 level, feeding back into asian currencies in general. Enough problems, the pboc has a plate full of issues to deal with and they are under pressure to do policy easing as well. The last thing they need is a disorderly performance. They would like it to be as quiet and stable as possible, so they keep reinforcing the message day after day to people in the trading market, please keep the yuan quiet. We dont need that moving around along with every thing else. That is why you are getting these consistently large differences between where traders estimate and where the pboc thinks the dollar yuan rate is and they will have to keep doing it for a while, they need the yuan to be stable while they are trying to get other things under control. Yvonne when it comes to inflation getting under control in the u. S. It seems like the market is looking at the disinflation theme continuing in some ways. Is it going to justify the bond rally we are seeing and treasuries . Mark certainly a lot of faith has been builtin. One reason auctions have been going well is people see inflation on the declining path going into next year. It gives the fed room to ease policy in the middle of next year. We will hear more from jerome powell, he has a speak in a couple of weeks time. A big turning point for markets, the chairman for the Federal Reserve likes to give a big signal at these meetings and he will want to say rates are on hold. He might give us a clue as to what he is looking for in terms of lowering rates next year. Theres a lot of faith being built into these auctions that people think yields are close to a peak. If we got a u. S. Cpi number, 0. 3, 0. 4, above forecast, that would turn everything on its head because the market is not prized for a hot inflation print. David Mark Cranfield, thank you so much. To his point shortterm core cpi is back at the fed target. Are we one nasty data point away from the narrative sort of shifting more than a few degrees . Just ahead we will be talking through the outlook for Global Shipping and transport with hsbc amidst geopolitical tensions. You have Commodity Prices pushing higher. Union pacific, we will debrief those earnings. Strongest firsthalf numbers in 13 years. This is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh 76 of 23andme Health Customers surveyed reported taking healthier actions. Avalarahhh because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. Was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com david breaking news right now out of the journal. Talking about tapestry, the owner of coach. Not sports, talking fashion. Nearing the deal to take over capri holdings. If you are not familiar, think michael kors, verse saw cheat and one of the biggest tieups in the industry, thats what we understand. Last price on the stock is 41. 24. Nearing a marriage of these many brands. From that, lets turn our attention to oil which is also a big story, has been a big story. Tied at six straight weeks of gains, going on seven now. Yvonne i will bring you in on this since we are having a conversation around transport. Higher prices and energy and you look across the oil curve, suggestions there things are tight on supply. We will see where this goes. Nearing a january high on brent. Yvonne backward across all the nearest time spreads. It is a clear indication that supplies will remain tight. Obviously you have a prolonged head on oil operations, possible escalation of the conflict between russia and ukraine keeping oil markets elevated as well. How does it impact the world of shipping, transport, airlines, you had those specific earnings that just came out as well, the hong kong flag carrier is bullish on recovery after its best profit in 13 years. Lets bring in Global Equities head of transport research of aipac. Always great to have you. Your take on these earnings . As you pointed out, record results. Not only in terms of absolute profitability at the subsidiary level. Also in terms of the margin. The margin of 15. 2 is higher than the second half of 2010. The post stimulus led recovery. That tells you the appetite of people around to travel. Next phase of recovery will come in the increase of capacity. They are sticking to their target of 70 of capacity and by the end of 2024. One thing we highlighted it is there is not much printing leverage from here onward. We are modeling that they will gradually soft and from here on because the yields are softening even though volumes are rising. You are seeing that the cost will start to catch up. Which means that the big change on the bottom line will be driven by the turnaround. Rishaad you know, on that and on the cost basis, looking at oil prices which have been gaining. 25 up since may. They have not excelled at hedging. How are they doing on that front and what kind of headwinds will this oil price produce . I would say in early cycle it is more often about demand and supply. As long as the factor remains what it is today, they will have the ability to pass through that. They continue to maintain their hedging policy and the strike price is about 80 or so under 30 of that for the near term. This is the policy that they have, so yes. Rishaad comparing apples and oranges, prepandemic this looked expensive in terms of staffing. One of the biggest fixed costs compared to what it is now. How much has it benefited from that and how much can it and if it is we look to the future from the cross space . When the recovery happens, Revenue Growth comes first and cost will catch up. One thing you can say is in terms of the number of staff it will take a long long way to get back where we were prepandemic level, which means solvency has been extracted. When youre building capacity you will try to bring most fuel efficient and young airline on board. From here on the capacity will come at a price and therefore we are cautious on the operating margin side but in terms of profitability we remain bullish going into the second half and 2024. Yvonne i wanted to move onto to the world of shipping. Given demand from china seems to be quite weak right now, do you see any other markets . Going in chinas place in terms of commodities in particular . If you look at different sectors for the first half of this year, china from the commodity perspective, oil import is 14 year on year. If you look at iron ore it is up. Coal is up, bauxite is 11 . With respect to coal there was a low base but the rest of the world is also weekend especially when it comes to the dry commodity. The question now is the postpandemic recovery in china, it seems sluggish. Whether it is with respect to property or Commodity Prices. Which means will they continue to momentum in the second half of next year . That is where we are cautious. Yvonne are there other markets that can make up for that . People were talking about a golden locks economy in india. It can they be an alternative . In terms of growth, yes but in terms of size they are a different scale. China is 70 of the world iron or trade. India has less production. With respect to coal, india and china are the two economy which has an appetite to consume coal when it comes to power. Coal india has an ambitious plan to increase their own production. I do not think there is any quick fix to the loss of chinese appetite. Yvonne were talking about shocks and energy, shocks and food prices. Given what weve seen in the last few years, whether it is the ukraine war, do you think this has slowed down or ramped up a lot of the shipping world d carbon is a efforts in any way . One thing we have been highlighting over the past few years is that shipping thrives related to chaos, chaos related to whether and geopolitics. What we are seeing in a postpandemic world, it a lot of condition has on why did input pressure on the freight. The trend has slowed down but bear in mind now that the sector has a stronger Balance Sheet then there have ever been. The effort was d carbonized in from different parts of the world. What we are witnessing now is ensuring that probably the effort will only step up from here. Rishaad looking at this, youre talking about freight rates. They are not all equal. The tribal rates vary from cape size and other i supposed silos of the freight market there. They have been performing in very different ways. Absolutely and because the underlying drivers are different, if i can quickly summarize, when we talk about container rates, they have capitulated from the high level. In the last two months with the noise around the potential strike in canada and lower water level in canada, we have seen a slight uptick on this with respect to dry break, probably especially on the minor side of the dry bulk with unwinding of condition especially from russia has pretty much put a pressure on the freight and bulk. The tanker remains the only bright spot and lastly because the china continued to import as the europe continues to reduce their dependence on russia, russian oil is making a longer distance including saudi arabia. Rishaad all of this has had an impact on what became one of the ways to ship stuff, airfreight. How has it been performing and how has it affected the airline universe in asia . So airfreights are also normalizing. Probably they are lagging behind at sea freight but with more and more l. A. Capacity that they are turning back to the market. If you look at airfreight now even from the peak, it is barely around 30 , 40 from the precovid level similar to passenger ticket prices but more than half from the heyday. The outlook is very cautious. There has been some caution with upcoming peak season and more capacity to turn back. You will see continued normalization. Yvonne parash jain, global head of ports. Weve got play more ahead. This is bloomberg. Fabulous surroundings. But everyones looking at thehones 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. David so we are just moving into about one hour into the cash market session in hong kong. Onshore and offshore on your screens diverging. 7 10 of 1 on the hang seng tech index, perhaps the pull from alibaba, 93. 40 ahead of earnings coming out and give or take nine hours from now. Thereabouts. Catherine is with us on set in singapore to talk us through what they are watching out for among the many, many things and components and angles to the alibaba story. Write spots overall, lets start there. Im going to start china commerce. Low same time last year. Through covid destruction etc. So they should do better sequentially year on year. The question is how sustainable that is going through the rest of the quarter, particularly since we know that Consumer Sentiment in china is not the greatest as we speak right now. So we are on the lookout to see whether they are able to actually close the declines that they have recorded for the customer, management avenues which essentially is a function of Business Sentiment as far as Consumer Sentiment. The cloud is the next thing all eyes will be on since China Telecom has numbers out and they have set very aggressive targets for Revenue Growth by the end of this year. China telecom i guess my initial take looks like there revenue number is going to beat alibaba for this year. You know, given particularly the very strong government public cloud revenues. So we are going to see how that translates out into alibaba given that alibaba is also taking some moves to defend our market share, price cuts, service fee waivers. Weve heard about it in the earlier part of this year. How that translate to the Revenue Growth, yeah. Yvonne it is interesting. For the first time in a while this seems like the stock has improved. In a way, the big tech, theyve got the wind on their backs into the earnings season. If we are going to see recovery, that is one to watch with alibaba. Restructuring, any updates of ipos or spinoffs we should be looking ahead to . Good question. Thats the next one that will be on the lookout to see whether theres any up dates on ipos, the earliest potential ipo that could hit the market. Out of three which alibaba had mentioned in may that will come in over the course of the next couple of months into may of 2020 four if not november 2024. It clearly is a function of the Market Sentiment and what kind of valuation they will get out of it given the entire macro environment. I would not be surprised if the sentiment remains a little like last year on china. We might see the ipo next year. Rishaad catherine, thank you. Catherine, Bloomberg Intelligence aipac consumer analysts. Market action at the moment, a move to the downside, lets have a look at some of these companies. Tech taking an absolute beating and dropping as much as 21 , the most since 2008. Company coming out with 18 year on year decrease on net income. Remaining cautious in pointing to a Challenging Market environment. Sony warning about the smartphone demand out there at the moment and warning about delays in that. Alibaba is out with earnings. Oil producers also very much at the for as we saw wti hit levels we have not seen this year and that is taking its toll on oil. We are seeing them on the way up. Impact of Oil Expiration in japan, 17 to the upside. Having a look overall at what we have right now and here we go. Seeing that all playing out with japan heading to their lunch right now with some well, small, small gains here taking place, but better than nothing. A lot more on the way. Hi, im katie, ive lost 110 pounds on golo in just over a year. Golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. I had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. Golo has been more sustainable. I can fit it into family life, i can make meals that the whole family will enjoy. It just works in everyday life as a mom. Breaking news crossing the bloomberg terminal, it really does represent a response to president joe bidens executive order to essentially well, stop or limit investment into sectors such as fire five technology, and as it were, sectors that involve Artificial Intelligence, and perhaps some quantum Industry Groups here as well. What the chinese are saying at the moment is that the move by the current trade order, has caused a diplomatic complaint with the United States on this investment curb. That is what we have coming out of the ministry of Foreign Affairs in beijing. Right now we see markets here, the yuan stronger than anticipated, and the strength of the dollar also playing out a little bit against the offshore yuan yield on im sure. The japanese have gone free lunch break to the upside, and those stocks are making way. Waves here quickly. We saw shares here tumbling after the group said that delays in the Smartphone Market and the recovery are giving a bit of a pressure pressure on financial outlooks. That is why we see movement. Thats to the downside. Quickly looking at what we have with commodities, you know, yvonne, we have these oil prices playing out. This is looking like a rise in National Natural gas. Yvonne 15 year highs for rice, we have Energy Shocks and elevating food prices, we saw what happened with natural gas and what we saw with european markets overnight on the back of the strike which is looming in australia. Youre watching all of these Central Banks and whether or not they will pivot here, will they see through these inflation shocks in the world of food, as well as energy, lets talk more about this possible strike which could be happening for workers in australia. Production workers, particularly when it comes to woodside and chevron, have been planning this for a while. Rishaad thats going out there. Natural gas features also at the four. Fore. We have paul allen talking from sydney with the latest and what do we know with regards to this . More weightings between woodside and the union, and we had woodside saying that one product progress is being made and an agreement has reached agreements have been reached. Promising science out of australia today after woodside workers voted to strike yesterday. Does not mean its necessarily going to happen, and if it did, there would be seven days of notice first. This would be the first time what these workers would have gone on strike in 30 years. Otherwise, its standard stuff, improved pay and conditions, prevention of outsourcing of jobs to contractors. And profit sharing, with the workers considering going towards strike. The Market Reaction was profound. European natural gas futures settled much higher by 30 , that is the biggest gain we have seen since the early days of the russian invasion against ukraine, and other shares were performing well in australia. David oh, was the outlook for gas prices from here . Paul, what is the outlook for gas prices from here . It depends on the outcome of todays meeting, whether it can be settled, but they are putting a whole lot more pressure on the supply side. We have a number of watchers predicting that asian buyers are likely to enter the market and bid up imports to replace volume coming out of australia, and australia is one of the largest exporters of liquid natural gas. We know that there is a diminishing pool of energy in europe and those buyers will be competing with asian buyers. And you have a potential covering of positions by investors who are betting that gas prices could come down. All of that means a fairly volatile path ahead for natural gas. In the meantime, we need news out of Western Australia in terms of how this is progressing. David paul allen in sydney there for us with the latest on the strikes. Goldman sachs dropping notes alongside these stories, which means saying that they could lift prices into 6869 euros through the winter and summer of 2024. Lots of moving parts as far as that is concerned. From that big story, we are now looking at latin america and in case you missed it, the ecuadorian president ial candidate Fernando Villavicencio has been killed, while leaving a political rally less than two weeks before the vote. Lets bring in our correspondent to talk us through this. Stephan, get us up to speed, whats happening . What did happen . Fernando villavicencio was attending one of his campaign events, he was escorted by police and did have security, and a government got close and shot him point blank. There were several other injuries, we are running, including two Police Officers the candidate running for a National Assembly position. The election is scheduled to go ahead in just 10 days. The current president has called in his security cabinet and other officials for an emergency meeting and canceled his scheduled for tomorrow scheduled for tomorrow. It was already a shock late july when a mayor of a large city was murdered, and this is on top of it. Truly unprecedented. Rishaad do we know who is behind it here . Theres a lot of Gang Violence in the country, and there was also something mysterious filed to the authorities with regards to an oil company, an unnamed oil company yesterday. Well, Fernando Villavicencio was one of ecuadors most prominent investigative journalists and uncovered a lot of links between organized crime and officials of the former administration. As you mentioned yesterday, he accused members of the former government to of having been on the receiving end of bribes. That said, he said he received Death Threats from drug gangs during the campaign, so that is also something that could be behind the assassination and it is also what the current president said. He blamed the assassination on organized crime. So, there was a suspect but he died from gunshot wounds in the aftermath of the whole crisis. David yvonne and those cartels have made ecuador one of the most violent countries in the world right now. It was suggested that he was one of the top candidates, i think ranking second in support. What does this mean for the election . Well, his party is able to nominate someone to replace him and he had a running mate. An environmentalist woman from an environmentalist woman. There was a series of viable candidates for the election. There are still seven people in the running. The election could go ahead, and the head of the electoral board is at the emergency meeting going on right now. Yvonne thank you for joining us. David thank you for joining us. Fernando villavicencio joining yvonne joining us from quito, you are watching markets. David its quite a fluid situation there, we are tracking that an obvious what is happening here across these markets, and going into several key events risks, really out there, were down in the third day of the last four or five here on the benchmark, because we had pulled until we had leveled into what had been decent support going back to the start of this range bound past few months on this benchmark. So, yet again we are back here losing momentum. Light volume, not a lot of conviction as we speak. Thats the market story for now. 3 across the region, moving into a conversation around the Property Market in the philippines, gdp was outcome a big miss their earlier, we are joined in a bit by leechu Property Consultants ceo. This is bloomberg. Rishaad here we go, we are with the dollar gaining ground against the peso, we are at the highest level of the moment employment since may 30 with regards to the peso, just also looking at what has been going on with the gdp and growth of the country, because it came in with quite a margin, youre on your growth estimated 4. 3 , we were looking for 6 , this is for the second quarter, i should add. And also quarter on quarter, it could traction of. 9 . A contraction of. 9 . We were looking for. 6 . That region heading to the downside, and for the eu, we are seeing a flat picture with regards to that, just down by 1. 5 since we started off 2023. David. David that is about six days away from the next big decision with the central bank, that they will hold or might cut. But that might be a First Quarter of 2024 story. That still takes us into the property conversation. This is one market according to our guest that has held up against its peers. Lets bring in david leechiu, the ceo of leechiu property. You think this market has done well. Why is that the case . David thank you very much for having us. This Property Market has done really well despite everything that has been going on, and we attribute that to four four or five things. Its about a million filipinos sending 35 billion dollars spending 35 billion a year, and the crisis that is going on in the west has only greeted more jobs in the philippines. I sit on the board of the bbo sector here, and the record job creation we saw happened in 2020 to one and 2022, where Many Companies decided to go offshore to the philippines. There is also the massive infrastructure spending, and what happened during 20202021, the government actually completed a number of Infrastructure Projects that were muchneeded and it came timely when things open. Opened. And we think that in 10 years time, the Tourism Industry will continue to be a very big portion of the economy. Consumer spending yvonne what sectors of the Property Market are you seeing the most demand and . Office has been something that is very strong in the first half. Retail, residential . What do you think has the best outlook here . David i think there is a factor for offices leading with residential, it is surprising how these Interest Rates are climbing. The property prices continue to climb in the philippines across most segments. And its a testament to two things. One, the private sector debt is lower than what everyone anticipated, and the savings rate is much higher than what was anticipated by everybody. David understood. To your other point, what is driving demand for offices . You mentioned outsourcing for example, 20212022 . What is the outlook there . What are other sources of key drivers . David the traditional offices are all using this low time to upgrade offices and tear down old headquarters and building new headquarters that will be finishing 56 years. There is a whole lot of redeveloping happening in the philippines, particularly in a major city where 40 properties are going to be torn down and redeveloped in the next 1015 years. Yvonne you mentioned ppos, the largest take her of offices, they provide jobs for graduates, what does ai to do that due to that industry . Does it take away jobs from filipinos . Will the market look vulnerable . David its like a little baby that is very quickly growing. There are a lot of nannies that are trying to attend to it. I think 710 years that could be a potential very big risk, but at the moment ai is producing a lot of jobs in the philippines in terms of developing a big chunk of the ai platforms, and the tutorial and nurturing of these platforms are being done in the philippines. At the moment, ai has been a possibility in the philippines. David give us the outlook for real estate assets and pick whichever one you want to talk about. Outside the key districts. Give us a sense of where Foreign Investors should be looking outside of manila. David i think that the philippine investment markets benefited a lot from japan, Japanese Companies are investing quite heavily in the philippines. And it is not just metro manila, we are a very very big thing of multiple big tourism hubs and the cities around them. They are developing tourism in anticipation of improved tourism from the asiapacific tourists. David as a quick 101 from our viewers, your mentioning these cities in the middle of the country, and the tourism hotspots, to underscore the relevance of that driver. If we wired you 500,000 u. S. Dollars, what would you be buying echo . Not that we would, but yet. David land. Land for beach property. One thing that can be said is that in the last 15 years, we have developed new airports all throughout the country. So, please, to the public traveling to the philippines, dont let the Manila Airport set your benchmark for the philippines. There are airports and numerous other places in the philippines which are gorgeous, beautiful and easy to access. And it just makes the experience for traveling in the philippines so much better than coming into manila. Please bypass manila. Troy clark. Try clark. Yvonne certainly as someone who has never been there, im looking into this. You mentioned, overall, there is so much attractiveness in the philippine market, i wonder when it comes to global manufacturer looking at a china plus one strategy right now, do you see the philippines as a key place for that . Is the country capitalizing on this . David no. We are one of the few economies that actually made the jump from agrarian to Services Without going through manufacturing. It will never be a manufacturing hub, because we have the highest power cost in asia. And that alone will deter many factoring companies. We might get data centers and high Data Processing analytics work, but not manufacturing. Yuan david, thank you so much, the ceo of leechiu Property Consultants. We have 20 more ahead. This is uber. Plenty more ahead, this is bloomberg. 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 50 on the sleep Number Limited Edition smart bed. Plus, 36 month financing on select smart beds. Shop now only at sleep number. You dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh upbeat music awww. Awww. Awww. Nope. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. 76 of 23andme Health Customers surveyed reported taking healthier actions. Constant contact. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. David welcome back. Other big markets stories todays come up big movers across different parts of the market, china possibly allowing group tours to japan and south korea in what could what could be the significance, our guest talking us through the reports. We are getting a lot of speculation this week, especially that we could see china announcing the lifting of a ban from group tours to japan and south korea. This could be really big news. We heard from analysts that theres a bit of disappointment coming from chinas economic slowdown, and there have not been that Many International business overseas travelers from the chinese markets, so this would be really welcome, and so what im noting here as well is that china banned these group tours to south korea in 2017 after the third Missile System deployment. It would be a Welcome Change for some of these industries which would benefit from these tourism flows. We are seeing retail, transportation, cosmetics, these stocks moving upward. Rishaad thank you very much for that, joining us there from singapore, lets check in with market action, we are seeing a bit of a comeback taking place with some of these benchmarks, and we are seeing strong gains for these buyers stocks and farmers stocks in pharmacology stocks doing well despite the investigations into corruption, because of confirmed cases of monkeypox. Those cases rose nearly fivefold to a new high. This is a condition, a viral condition, which can occur in humans and animals. Oil companies doing well today, as we have Energy Shares jumping up, oil haidi hitting ninemonth highs, and we see the price at levels unseen throughout the entirety of 2023. We also have shares of these companies doing well as a result. Heres a look at your globo macro movers. Global macro movers. And it look at global u. S. Inflation data later. Its an amazing thing when you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. We have been able to reach over 100 Million People impacted and affected, and at risk of hiv. The rocket fund takes all of the work that were doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. The idea that we have saved five Million Peoples lives, its overwhelming. Its everything. Yvonne almost 11 00 a. M. In hong kong and shanghai, welcome to Bloomberg Markets asia. Rishaad lets have a look at our top stories. Mixed futures higher, investors have and i on the u. S. Inflation report set to shape the next steps for the Federal Reserve. The reserve bank of india is holding its key rate. Oil steadying at nine months high after the ukraine war overshadows gains, and strikes from woodside operations affecting energy stocks. We will be speaking to the i. T. Minister of india after parliament is set to pass a bill benefiting big tech. Yvonne a mixed picture as we get closer to the u. S. Inflation print and what magic number will shake up these marks, especially when it comes to the bond rally in treasuries. Despite these massive options that receive which happened happened quite well received. We are seeing when it comes to equities some downsides when it comes to towel on taiwan. There have been concerns about that ai that might be same cracks now as well. And we are looking at the rbis decision happening later this afternoon, when it comes to elevated food prices and energy prices, how does rpi feel about that . That is something that they might need to mark. And whether or not they could start that pitted as many others are holding for now. Commodities mixed, oil is the key thing with the bti, brent heading for 2023 highs, that is helping the whole energy complex, and we are watching natural gas given this looming strike in australia which has brought european natural gas as much as 40 up yesterday, thats one to watch if we do see that strike, and yvonne Everything Else is mixed across the board. Another strong fix for the pboc helping its take a little bit steady. Rishaad lets look at bangkok now, because this is a market down 8. 5 for the start of the year, but if you look at it from june onwards, you are looking at a 4 gain which we saw yesterday and bloomberg investors seeing the highs and buying them for more than three months. We have been dealing with their prodding nine equity markets at the moment, but the barge continues to weaken, and we have features indicating a flatlower opening, and the reserve bank, as you mentioned, is coming out with its interestrate decision, we are respecting no change there, but the cash ratio will stay at 4. 5 percent, and the repurchase rate, at 6. 5 . But, of course, its about inflation in the u. S. And we are looking here at cpi, coming in at. 2 or thereabouts in terms of an increase from julyjune, july to june, and this is a course front and center of what they have been doing, and with what happens on the line, thats the question. Yvonne acceleration and headline members of 3. 3 , but month on month numbers will be selling. 0. 2 would mark the second month that the annualized monthly core is consistent with the 2 target. That seems to be continuing and confirming this disinflationary trend weighing on these markets and continuing to help lift some markets when it comes to risk. Then you have this bond option, where things have gone pretty good, those 10 year note yield under 4 , that is helping in terms of demand, given all that supply deluge people were concerned about, not that big casey right now. Lets take a look at our guest, the head of asian rates strategies at aba securities joining us in hong kong. This whole narrative of session fears receding, the soft landing, is this something you can buy now . Yes i think so. And we have changed our forecast from a recession to a soft landing. We do think that there will be more disinflation on the next couple of months, and we are looking for 0. 1 percent, but i would flag that this is becoming the consensus. I have talked with clients of the past couple of days and people are looking for a softer core inflation print, softer than 0. 2 or 0. 15. I think people are getting into this narrative where you have disinflation without a big move up in the unappointed right or a recession in the u. S. I think that is the only fear that people are buying risk assets on that view of a soft landing, at this point. Yvonne we have seen renewed strength of the dollar against emfx. The dollar will remain strong of the next few months. When you have looked at historical cycles like this one, the dollar remains strong for a few months. I think in the third quarter, it will stay strong against most currencies, but lets see what happens in september, whether they hike for not will be important and it can start to weaken. Rishaad you say look beyond the fed with regards to the dollar, so what should you look at . Two things. The fed still matters, but china is super important. I would make the case that you cannot have the dollar enter a durable downtrend unless you see a durable recovery in china. And we have not seen that yet. And that apps get expectation is to get stimulus measures down the line, but any specials you get in china would have an impact on growth and activity with lag. That is consistent with my view that if you get the china recovery that is most more likely in the third than the fourth quarter. The narrative in the third remains one of u. S. Dollar strength. Rishaad where does that emanate from . Are they skipping if they skip in september does that change the narrative . Depends on the data. Even the cpi today is it is too soon for them to make a call on that september meeting because they have so much data and another payroll cycle and another cpi. In short, the market is probably going to be dealing with carry trades, and fx is going to remain low. We are calling for a september rate hike and we do think the u. S. Economy will be resilient enough to support another rate hike, and given that we are not pricing in that much for the septembernovember meetings, that should be good as well. Yvonne the yen has been a key beneficiary of one you mentioned. Can that be the case even with this yield curve control tweak . Absolutely, absolutely nothing has happened after that tweak. Fx volatility is more important, and dollaryen volatility is on a 9 handle, which means the volatility adjusted carry for the japanese is very high. And i think once we see that number, as long as there is no big surprise, people will reengage building up the yen, cnh, taiwan dollar and others. Yvonne i just kind of wonder, this diversions we are seeing with the basket, which is showing strength against its peers and the dollar where we see weakness, how will this up payout . All payout . The cps market does look too strong given the backdrop in china. The problem for the pboc is that when the dollar is strong in makes the fixing strategy more complicated because they dont want the dollar to go to quickly because that might lead to click capital flight. At the same time, i dont think that basket is stronger getting stronger than current levels. They will try to stabilize the dollarsee and why, but the ultimate stabilizer will allow basket to move forward. I think it does underperform over the next couple of months. Rishaad please stay with us, a lot more to talk about, with asia, of course, and what is happening with the tumult in global economies. We will be joined exclusively by indias minister for communications, and information technology. As Parliament Approves a data privacy bill. We discussed the ramifications. Later this hour. This is bloomberg. Yvonne looking at fx this morning, slow going when it comes to what we are seeing. Not a lot going on when it comes to the dollar, 72 for europe 7. 2 for your offshore m and b. Lets bring in the cohead of asia strategy with us. We want to talk about Group Markets. There seem to be supply shops around the world when it comes to commodities. You see it in soft food prices, energy in particular. How does that change your view of Commodity Currencies . We have to think about the type of commodities. Its going to affect energy, but if you look at bulk commodities like copper and iron, or aussie bulk commodities, quite week, or the norwegian krone, thats been a performing. The Energy Crisis is quite important for exporters, and for Asian Countries as well, so they are net energy importers, and with prices moving higher, it can be bad. And it of a c cup policy decision making. Which brings us to our b. I. , which there dealing with when it comes to elevated food prices. Are they going to overlook that, or can they start pivoting . Historically, they dont overlook it. And there is a specific case of prices rising where inflation is lightly to move above 6 over the next couple of months. That is something they cannot ignore. Typically what they have done is they have hiked because they have seen it biggest a big spike in demand. We expect a hawkish hold. They hold but they sound hawkish and they withdraw their accommodation stance and keep the option of future hikes open. But theres not a lot they can do through mechanisms such as monetary policy. I want to get your opinion on this, perhaps were going to stay still on rates because they want to defend the rupee . Absolutely. Youre right about the prices, but they can do something about inflation expectation, that is where the hawkish this comes from. As far as the rupee is concerned, they have done a good job. Volatility has collapsed, there theyve been selling and buying dollars, and in other words i think the management has been driven by fx intervention rather than Interest Rate policy. That is something that continues moving forward. When we look at Central Banks in asia, you could argue ahead of the curve, and manage inflation in some ways, perhaps with structural regions as well, where do we go from here . Who is doing the best into is not doing so well . And who is not doing so well . You can argue patient Central Banks have been lucky in that the demand from china has been week, and inflation has been lower in the region compared to other countries. I think that we can say for most cases we are done with the rate hiking cycle, but the question is when Central Banks will be comfortable cutting Interest Rates or normalizing Interest Rates. I dont think were there yet and we dont expect that to happen in 2023. But maybe 2024, we see that happening with Central Banks, especially with the fed in 2034. Do you have a call in terms of the rupee that can appreciate from here . We are constructive in relative terms. We do expect the index to move lower. Given the ability for a strong dollar, the rupee outperforms a lot of its other peers, and that is the reason we want to have the story that it is strong and the care is attractive and the rpi is rbis is active in keeping it from going too high. You also mentioned them being one of the best beneficiaries of the beginning of the year, and you see these decisions coming out tomorrow, what does that mean . We saw limitation of carry trades, theres a big reduction of them through july, and given the latin american Central Banks beginning easing cycles, latin american currencies should underperform. But if you talk about the next 12 months, that sort of environment would allow currency to do five. In the long term they will probably weekend. When we are talking about the yuan, we had stronger fixes every day since june. What message are they trying to send out to Market Participants at the pboc . What is the sign land line in the sand . The message is clear, they want to avoid will oneway speculation in the rupee. At the same time, your question about the line in the sand is important. Is the dollar see ny or Something Else . There have not been any lines in the sand from the Bilateral Exchange rate. What they have focused on is the fed in terms of that ethics policy decisionmaking. Going back to what i said earlier, the fact that the basket is so strong given the vast backdrop means that if the dollar continues to strengthen they should allow things to move higher. And tracking the broader dollar move. In the shortterm they are worried about oneway speculation, and thats like fixing has been strong than expected. Where are with we with the internationalization of the currency, it really took off with fall internationalization. Fall internationalization. I think its still possible, but it is definitely slow down because of various factors. And Foreign Investment in china has been slowing down as well. I think they want to actualize the currency, but does that mean full flexibility . Probably not. Yvonne thank you, our guest with what to expect. Covering most of the world when it comes to fx. I just want to talk about what is breaking across the lines here with racketeering, they are to consider listing its credit card unit. We are trying to see a little bit more about details about it here, but this is something we are considering. They are considering. There are earnings coming out later on today, they are considering an ipo of one of their units. We have more ahead, this is bloomberg. upbeat music woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. 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 76 of 23andme Health Customers surveyed reported taking healthier actions. Ahhhhhh because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. Rishaad u. S. Futures perhaps just picking up. Taking away some of the lawsuits losses from asia with that cpi reading coming through later on, we will be looking at the cadillac escalade. Not one of the largest one of the largest, most luxurious and most polluting vehicles on the road. An allnew plan for an electric model, expected to be profitable by the time it goes on sale. Even at an up eyepopping price tag of 130,000. This is additive business and we know that there are people that want an electric three road suv, fullsize, and we will be the first ones to bring it here with an iconic brand. So we know that this is in addition to our internal combustion engine. You can see as a next step in the design language for cadillac inside and out, and this is going to be right on the cutting edge of everything. It is the escalade standard of the world. You already have the hummer, which is definitely on the cutting edge of everything, and early adopters who are waiting for an electric vehicle went out and got that. Who is left to buy the escalade at 130,000 . The ultimate platform that we are here talking about here is flexible and different from the suv offered from hummer. And you will see it in the proportions here, where we are really going after efficiency of 450 miles of range, thats a big deal for families and people who travel. Thats a big range vehicle, but its also 750 horsepower. The hummers are in the thousand horsepower stand. Its a different customer and cycle standpoint, but its built on the mod pack that we use on our chart platforms. There has been criticism about these big battery packs, Bloomberg New Energy Finance wrote that you are using a lot of lithium which may be should be left for smaller lecture vehicles. How do you respond to that . General motors can make both. Were going to make every thing from the bolt of an ltm based pack here to the equinox to the blazer. Those are the biggest sellers in the war, price points that are the most affordable and bright in the wheelhouse of those segments. We are going to do that. Technology changes, and anybody thinks that we are going to have the same Technology Even a year from now, chemistry wise, with our Battery Systems across the whole industry, is not thinking about it quite right. I think it has been mentioned before that the telik medications industry, there were people fearful of copper. That changed. You get into silicon and all of these chips, new technologies on a pricking transformation of the industry, i can tell you books will see this as just the first step. Yvonne the General Motors president there with matt miller. Checking Group Markets and the big headline this morning has been when it comes to oil we are basically back to 2023 highs, 84 bucks for wt hi, and brent crude following overnight. Across most of these contracts were seeing, its basically backward issue, an indication of how tight this market is right now when it comes to oil. And it is not just energy, we are talking about food prices and maybe its time for me to cut some carbs when it comes to rice. Rishaad lets have a look at what is going on with rice, we have it soaring, and the deal here, there you go. This is thailand, 5 broken rice, the highest since 2008. And mounting concerns over global supplies, dry weather threatening production in thailand and india banning some exports of basmati rice, and we have it jumping up to 648 per ton. Most expensive since october of that year. We are looking here at the commodities complex, agricultural stocks feeling it with tensions between russia and the war in ukraine in ukraine. Of 30 over the last five days, getting a bit of relief, due to woodside, european gas. We are also looking at some of these earnings. Yvonne ababa is coming up, we are watching, when it comes to chip stocks, with smic reporting as well, and given what we have been seeing with these investment curves around ai, quantum computing, the like your, how is this all going to fair for some of these domestic players here. You take a look at that, normally the scope of that investment in this order here as they try to stick these ties, the market does not take it as a positive. But alibaba is down and tektronix continues to see downs of 18 on those lead to earnings , with wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. 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I suppose that we do have these deflation threats not being killed off to some extent and that is putting off some of these chinese stock investors. A quick check with hong kong, and we have the index there. 1 lower, which the hs index really dragging down the sector and the tech side being lower. Yvonne, weve got lunch, and took you coming back from there is. Yvonne were going to watch what happened with racket 10, the news that they are considering listing their credit card unit on the nikkei listing their credit card unit, the nikkei up. 5 , and we are seeing downside here of. 6 . What were hearing from this report is that they will bring their mobile painted payment unit also under the pratt credit card unit as part of the restructuring. But they are also looking to list the credit card suit. Subsidiary as they look towards their finances. Overall, its sort of a mac meh day. We are talking india, now. Rishaad with lawmakers approving a bill expected to help some of these Technology Companies or Big Tech Companies like google and meta. It is also being seen as a victory for narendra modi, who is attempting to revamp indias tech industry. This proposal would ease data storage, processing and transfer norms for these countries, as well as local ones. Which is really seeking growth abroad. Lets get more on this bill, its not an act yet, we are joined by the minister for electronics and i. T. Thank you so much for joining us. Its been side, seen as a form being signed into a formality by the president. Tell us about it, and how it differs from other bits of legislation which have already been enacted in the you and elsewhere . In the eu and elsewhere . We have an active environment, more than 100,000 startups. And we have a very large economy where Digital Payments process 1. 5 trillion. To create a balanced model, where data is protected online, we have an Innovation Ecosystem which continues to grow and we have adopted this measure which is significant a difference different from before. This is not a prescriptive bill. It prescriptive bill would put so much compliance as to probably have issues when technology changes. That is why we decided to keep all of the important language within the bill and codify those principles legally. We have guidelines for the Innovation Ecosystem to continue to flourish. The entire implementation will addressing abuse of the Data Protection board, and everything will be in our digital rishaad how does this help domestic i. T. Companies . X the established principles of Data Protection, such as the people of storage minimization and data determination principle of accountability, all of these have been codified. This gives huge leverage to the entire industry to go all over the world, there is a vibrant i. T. Industry, more than two hundred 37 million of industry, but this gives more than one level to the industry to go all over the world and say here is a great and robust Data Protection law available in india, and much more processing cannot be done and much more i to work cannot be done in india for global companies. Yvonne what does it mean for Big Tech Companies like google and meta, does it actually increase their compliance burdens . It does not increase their burdens, because all of these geographies have a strong digital footprint. They have already created and established their systems out there. So we have very very extensive consultations. We must have interactive with more than 28 organizations. Some of them had more than 70 people presenting the findings. Almost 34,000 submissions have been received. The bill has been in the works for more than five years. This has happened on the global as well as domestic side, both sides are comfortable with it. Our Digital Economy is quite different from other digital economies in other parts of the world. We have democratize the technology and technology is accessible democratized technology and technology is accessible. We want to make it so that axis is equal in case of a person living in a small village or a person living in a large villa. Yvonne this also looks to create a Data Protection board, what would the role of this order be, and can these decisions be appealed in any way echo . It requires a body, which is proficient in data studies and the Digital Economy, and it will have professionals who understand this world. They have created a threelayer set of mechanics. If there is a problem, if someone has a problem with a social media platform, one will get the opportunity and the right to lodge a complaint and the company will be obligated to address it. To make sure that the customer or the user gets a chance. Next is Data Protection. And on top of that, there is another judicial body which is an existing body, and that they will work together. It is a nicely handled, and constructed set of responsibilities if the complaint is not addressed. Rishaad im sure the companies will also be the judge of that. What happens with some of these nascent technologies such as Artificial Intelligence and maybe beyond that, how does this, when it becomes law, really deal with them . Thats a very good question. If we had kept the law as written, then with the change in technology, it would have to go back to parliament. That is why we kept the law principles based rather than prescription based. If it is principlesbased, the principles of privacy are well established across the world. Even if technology escape changes, we can now adapt to these changing technologies. Rishaad quickly, what about hardware, there has been this campaign run by europe Prime Minister about making india. We have seen moves by apple and the like, what are you doing in terms of attracting companies to make highend products in the country . There is very good traction on many festering, laptops, and computers. We have already gotten four companies which have registered with the manufacturing board in india. Some of the big names have already started manufacturing in the country. This is going to be as historic as mobile phone fracturing. Three years down the line, you will see i. T. Hardware being exported out of india. Yvonne canute tell us specifically, you mentioned a few global companies, which ones have shown interest in making laptops and tablets . The parliament is in session, i should not speak about such things. You will be hearing the information very soon. Yvonne can you tell us about, there is confusion when it comes to new pc import rules. Can you clarify more about what the intention and rationale behind them are . The import rules have been discussed with the industry for eight months in a seminar. This has been done with our National Interest policies and our National Security requirements. I dont think that there is any issue with the investigative industry, where there is a significant transition time which is available. I dont see any problem there. The industry has gone right back. Rishaad thank you so much for joining us. Great for you to come on the show again, hopefully you will be with us shortly. Lets have a look at breaking news coming out of china, beijing is going to be allowing group tours from china to go to more nations, including the United States and the united kingdom. It will also allow group tours to japan and south korea, and we have been anticipating the reports of this given what we have seen in the media lately. And the stocks in korea and japan have moved to the upside. Optimism here about that permitting of group tours to japan, and visitors from china to japan, totaling 208,500 in june. That was prepandemic levels. This could change the game for tourism and give the japanese economy and further boost. A further post. Yvonne were going to be looking at lecturing names in europe. This is good news, really if we need to track this pent up demand in china as they had overseas. We have already seen Summer Travel action quite strong. This could extend a little bit and keep the story intact in some ways. We saw a paradise in korea up close to 18 , and we seek hotel schiller doing very well. A Third Straight meeting to support growth, while food inflation ramps up, up review with the Mk Global Financial Services economist next. This is bloomberg. The same as yours. Almost is just another word for not as good as mine. Save 50 on the sleep Number Limited Edition smart bed. Plus, 36 month financing on select smart beds. Shop now only at sleep number. Yvonne decision day for the rpi here this morning, expected to keep its rights and policy stance unchanged as support grows, and the key has been food inflation, tomato prices that have accelerated, which complicates things. Lets bring in the lead economist at emkay Global Financial services. What are your executions . Expectations . There is a lot that has moved from the last quarter at this point in time, and there are inflation worries back on the table. That is likely to reverse. The question is back on the table with flu food inflation, but they have not changed the policy of the western central bank yet, there is a risk of policy hikes which could happen in the latter half of the year. Normally things are not moving in terms of Central Banks. And domestically, ethically also see that being led by perishable foods, and that is likely to refer reverse as early as september of this year. Yvonne lets talk a bit more about that. You think this is just transient. You think that the rpi will overlook some of these elevated food prices . Does it raise any alarm bells on whether this is a structural issue it comes to inflation . The food segment, dividing between perishable and nonperishable, at this point time, perishables are leading the short with a very high spike. Which you have seen over the last months. There is no oversight at this point in time, we are seeing this in recent prints as well. Our b. I. s own Research Shows that there is an increase in enterprises within the last couple cycles which is shortlived. The average duration of the highpriced episode not more than 2. 6. They dont increase in terms of the upside. At the same time, if i look at nonperishables, there has been an increase across the world, and we are seeing prices globally going up, and policy seekers have taken care in terms of Asset Management which means that adequate stocks and recent exports one imply that inflation would be manageable. The other problem area is structural increases. But in a cumulative food price spike will resolve in march of next year. Rishaad with that in mind, we have a lot of pressure on prices coming from food. I want to get a sense of whether you see the reserve bank looking into and changing the inflation or even their growth forecast looking ahead because of this. Clearly, we are seeing an upside now for august, and we would not pursue price if we got as high as more than 6. 57 percent. We had forecasts which could also lead to the marking up on food costs, which is especially through this quarter of julyseptember, a risk. They will be raising this issue and they will have to deal with the fact that they are dealing with inflation. There will probably be sticking with their plan at this point. I want to get to what has been going on market wise and we have seen and massive money flow coming in from abroad into india as people get more and more convinced by this economic trajectory story. As opposed to going into china. Why is it not moving the needle with regards to the rupee . [indiscernible] that has led to the dilute meant of looking at it, domestic liquidity, because we have been at a consistent base. The rupee has been largely flat. I think the central bank is not necessarily looking at the currency about a movement against the dollar, but its asian peers. They are keeping a sharp eye on how the rupee is moving against chinese currency, which is up 5 , with an almost with a trade deficit against china. I think there is going to be a liquidity search back home. And we should not overvalue it. Yvonne when do you think the rbis can cut rate rates . With those rights pushing back, will they wait until next year . I dont think they would be proceeding with the fed, when you look at those shifting gears to next year, globally, i think policymakers will be talking about a much longer and much more stretched out right stance. Right stance. I dont see them cutting rates anytime before summer of next year, and i think that bears out in the rba. Rishaad thank you for joining us. Emkay Global Financial services, breaking news out of japan, this is records and confirming they will require 95 of rakitin payment, we have reports earlier that they will be listing that credit card division, the business assertion to consolidate his subsidiary, and we have the company saying in addition to an Effective Date of the first of november, all shares held by the company, that is 5 of the total shares, will be transferred and hereafter will become a consolidated subsidiary. The Company Split taking off and media reports being confirmed there. The rakitin group Rakuten Group up by. 5 . Yvonne markets this morning, we continue to see pressure when it comes to the hang seng down 1 , tech driving that lower this morning, teetering at that 19,000 level, the dk coming back online and still seeing decent green here this morning. Alibaba is the next one set to report later on today and we are looking for a return to growth when it comes to domestic ecommerce. And really reversing several quarters of weakness. Whether that remains the case, obviously stocks have gained so much leading up to this earnings report, certainly big tech has the wind supporting them in some way, but is it really an Inflection Point . Rishaad you know, we are really looking forward to getting some of the parts as it were, as it spits off various parts for the company. A return to growth, you yvonne. We have had four consecutive declines, and we are talking about the commerce revenue that only grew about 5 in the First Quarter. There are actually headwinds like is possible like this consumer slowdown possibly taking place, and Consumer Sentiment is down and might kibosh some of the optimism here. Rishaad yvonne and theres also questions about ipos and restructurings of its babies, and you see the stocks down 1. 7 . As you say, if the economy is weak, it is going to be hard for ome of these big tech Internet Companies in china to really outgrow the economy, there is that whole regulation risk. They are way past the worst, but that still lingers here, and the growth that we saw out of big tech will never be the same in some ways. Rishaad absolutely. Lets take a look at the markets overall, because tech has been good out of hong kong, but other parts and other Industry Groups did quite the opposite. The Chinese Government permitting group tours from the country to places like korea, japan, the u. S. And korea other places as well. There was a big slow down, it wasnt a big deal about revenge travel, there was 208,000, just a quarter of what we saw people endemic. And we look overall at what is going on with futures, we have an up hours story for u. S. Market futures, and we have an auction of treasuries coming up after a 10 year archery auction. Yvonne and the big one is u. S. 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