Transcripts For BLOOMBERG Bloomberg 20240703

From fed chair jay powell later this week. The thing is it is the higher Interest Rates putting u. S. Treasuries firmly in focus and the looming Government Shutdown not helping either. Lets have a look at the open for bangkok. The thai market down a fraction and at the moment as well we are seeing the thai baht relatively steady in the face of what we have been seeing. The baht actually is not that steady, around 38. Actuallya a big day for the dollar. A rising yield, weve got the japanese 10year approaching 75 basis points. The three year in australia. Talking of bonds, lets bring in charlie jamison. Thanks for joining us. What are you making of this . We have jamie dimon saying the world not be prepared for a fed funds rate of 7 . Now he says the worst case is 7 with stagflation. What do you make of these comments . Charlie look, i think the world is certainly not prepared for 70 7 rates. We would have a deflationary asset unwind and it would burst a lot of asset doubles. It simply would not be sustainable. We have already had an incredible rate hike insight although the lag effect of that is still to be fully felt for economies as much as economies are showing signs of slowing we have a number of things which probably point to further slowing in the u. S. Government shutdown is a cherry on top right now. But 7 is an awfully long stretch from where we are and would bring a lot of pain to consumers and corporates that need to refinance existing debt obligations. Rishaad so, i mean, at the moment at least, is the path of least resistance, given the mood music out there, not least the shutdown in the offing for the u. S. Government, is the path of least resistance for bonds to the downside. Charlie look, it certainly seems that way at the moment. That is the way the momentum has been taking the market. Some of these uncertainties in front of us, we have not seen immaterial fall in Economic Data yet that might very well be ahead with the expiring of u. S. Savings and the like built up after the pandemic. It is everyones expectation that economies slow moving forward but we have been hanging on pretty well. This higher for longer theme is continuing to be priced into markets. As of right now we have about 68 basis points of rate cuts priced in for 2024. But the feds dot plots only have 50 basis points. So in the shortterm potentially a little more headwind, and this uncertainty around the u. S. Government shutdown certainly does not help with risk sentiment there. But clearly, at some point, those higher bond yields are having a negative impact to risk markets and we are starting to see equities well off of their highs now, more than 5. 5 from the summer highs enjoyed just a few months ago. Any further material move in bond yields would probably be most unwelcome for risk assets. Therefore we can probably find a higher range in the near term. But yeah, the path of least resistance at the moment certainly looks to slightly higher yields. Rishaad when you look at what is going on with the u. S. Economy we see all this resilience. We had data overnight from the fed manufacturing survey. That big rebound here as well. New orders also surged there too. Now, this is not making the feds job easy because there is a body of thought saying we have to go and therese into a recession in the u. S. If they want to kill inflation off. What are your thoughts . Charlie i absolutely agree. This immaculate disinflation that everyone would love to see occur has happened to the point where we hit three as a base number. It is our estimation u. S. Inflation will reside somewhere between 3. 5 and 4 for the duration of the year, barring an energy shock, which of course is quite possible. That is just not low enough. And obviously central bank mandated policy is far lower and potentially we will need to do more to get there. But its worth remembering these lag effects take a long time to come to market. Obviously in the post covid environment a lot of people had time to carveout debt out of incredibly low yields. But very similar to the last major hiking cycle of 2004, 2006, it really took a little while for everything to kick off. 2007 was a year which was pretty down on pretty benign. And 2008 was a hell of a year of course. So were expecting 2024 is a lot harder than 2023, as much as 2023 as been bumpy. That large fiscal spend from the u. S. Is certainly keeping things primed in the u. S. Economy. That is something the markets are grappling with, that large deficit situation and what that might look like coming out of the shutdown. Rishaad absolutely. We have geopolitics playing a role in this and we have got an oil price which is now beginning to have an effect. If you just look at some of the listers like diesel. The thing is, in the history of inflation, you dont kill off this inflationary beast, as that were, in just the first cycle. Theres normally three cycles of inflation before you can really get to grips. The thing is we are probably at the beginning of the second cycle, if you look at the energy side of things, and we have a long ways to go. Is anybody at the moment pricing this in, in your view . Charlie look, i think that is absently correct. There is no question energy and commodities are generating Inflationary Pressure at the moment, and certainly may continue to do so. There are other things within the inflation basket that are actually helping to solidify those outcomes. So the expectation is particularly things like owners equivalent rent will continue to dissipating. There is a very lag effect in them rising and also coming down. That is why we feel comfortable that inflation, barring a huge political intervention in energy markets, would be curtailed somewhere between 3. 5 and 4 over the balance of this year. But i agree, we will not have the amplitude and the violence of the inflation outcomes we had in that first cycle, but it will not stand still by any means either. There will be peaks and troughs, although muchs smaller, and that will make central bankers jobs pretty difficult. Every time we start rising again theres a huge concern we have not slay the inflationary beast and it might come back to haunt us. So certainly i think they will be very cautious. This is part of the reason why higher for longer to make sure that inflation is ultimately extinguished to a level thats digestible for folks will be part of our goal forward. Ultimately that puts pressure on valuations through time. I think certainly we have seen bond yields we are not seen in 15odd years. That cannot be healthy over the course of time in regard to return expectations. Rishaad ok. So, with whats happening, we have got also things in the structure of the market like qt, which is also playing a role in muddying the waters. Some are saying this is great news and away. Because we have a credit cycle, if you will, now being reestablished after years of perhaps there not being one. Charlie yeah, look, obviously after the financial crisis we have papered over every crack in the wall with liquidity policy, rate cuts. Central bankers have been very quick to provide support at any turn or ready economies might have slowed. That is very difficult to do now while we have this threat of inflation hanging over the complex preit means the safety nets are a little lower this time and we can have the rebirth of a genuine credit and default cycle. Certainly that is something investors need to give due consideration to. Clearly there are now alternatives. The complex is well and truly gone. There are highly investable yields. I do believe that will change the flow of capital through the markets and once you get to that point where the macroeconomic environment is flowing at a faster rate and those credit concerns do continue to rise, it will be very important investors have given that due consideration in regard to where they are allocated in that complex credit spreads. Very tight historically at the moment. And that is justified with corporate generally doing pretty well. But we know when things start to move faster they can reprice extremely quickly and become somewhat equitylike in those higher risk moments if we are to have a risk event that has some systemic effect. Rishaad charlie, great talking to you. Charlie jamieson, chief Investment Officer at jamieson bonds. Lets tell you what we have coming up. We are going to be looking into how Lg Electronics is betting on electric vehicles to drive growth. Stay with us for an exclusive interview with the ceo of lg. This is bloomberg. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Rishaad here we go. The hang seng having another day of declines, tech being the culprit. Property developers also weaker. Lets check in with this drama, which is of course enveloping Property Developer evergrande, now facing a more complex path to its restructuring. One of its divisions failing to repay an onshore bond. Also have reports that former executives have reportedly been detained. Lorretta chen is with me now. What do we know about these possible detentions . Lorretta the chinese local media reported last night at the former ceo and cfo of evergrande were detained by police. This is a followup to a probe evergrande initiated last year into the finances of these companies and subsidies. There were suspicions the ease executives were moving money around between its units. And we know that for a long time the ceo and cfo of evergrande that also puts a question to the fate of evergrandes founder who used to be one of chinas richest people. Rishaad the question also has to surely be, how can you do restructuring without a cash injection, without them being able to issue new debt or new equity as well . The banks are not going to lend to them, lets face it. That is what we are seeing with most of the property complex. Lorretta that is true. The evergrande restructuring issue is really at a crossing point right now, with i think the key question people asking is, are regulators so supportive of a Restructuring Plan between evergrande and its offshore creditors . Because over the weekend, we know evergrande has not beenm able to issue new debts to replace the old one it defaulted on. One of the reasons is its siding the Regulatory Approval that it requires. So we do not really know what is the stance of the regulators right now. Also, it seems a bit strange that they picked this timing to detain the two important executives of the company. Rishaad and no doubt we have other Property Companies looking at this very closely, because this is a company that has gone further down the line. But thats, i guess, for them to look at. Anyway, thank you so much, lorretta chen, having a look at the trials, tribulations, and drama at evergrande. Now lets look at the European Union chief trade negotiator warning that chinas position on the war in ukraine may adversely impact its economy. He spoke at a press briefing in beijing as he wrapped up a four day trip to the country. Chinas position is affecting the countrys image not only with european consumers, but also its businesses. Eu companies in this company indicated chinas position in the war is making a less attractive investment destination. Chinas response and contribution revolving the war is a way that is important for us to engage. Rishaad all right. Lets get details from our asia correspondent Rebecca Choong wilkins. This is a slightly more i suppose forthright European Union coming to the table this time in beijing. What do you make of this trip . Rebecca this has been interesting. The eu has certainly put forward one of its starkest assessments of what is at stake when it comes to its relationship with china. So far they have struck a moderate tone, we have seen a lot of european leaders trying to project this notion of the eu being a middle path between the u. S. And china. Instead we had these two central messages. The first is one of unfairness and competition, the extent to which the market and the access to the European Unions bloc is fair if china is putting forward these type of state subsidies, as you see with this probe into subsidies for evs. The second part of this message which we just saw is this issue around chinas unclear stance around ukraine as its perceived by the eu. And really, with a very strong message, that this affects not just chinas image on the world stage, but the willingness, directly connecting it to the willingness of businesses in europe to continue relationships or renew investments in china. Very much making that link on independent economic dependencies. It underscores this delicate dance xi jinping needs to do here. On the one hand managing closer ties with russias putin, but on the other hand that that creates a wedge between the u. S. And europe, and in some ways, makes it easier for them to justify some of these economic policies that potentially could isolate china longerterm. Rishaad i think this has also kind of emanated from that probe into subsidies of electric vehicles in china, something that i think the commerce minister criticized as being a naked act protectionism. Rebecca yeah, this has been interesting too. The backdrop of this fourday visit by the eus chief trade negotiator really has been this investigation into the use of chinese subsidies for the ev market. The fear hear from the eus point of view is that cheap evs from china will flood its market and not allow fair competition with other local european players. I mean, longerterm, what were seeing is this potential alignment between the u. S. And europe being closer together, particularly when it comes to automakers. Now, the u. S. Already has quite high restrictions and tariffs that restrict chinas access to its own market. The eu has very much held off from that stance, has tried to have a much more open door policy. That is starting to shift now. Rishaad rebecca, thank you very much. Taking a look at this visit by the chief eu trade negotiator to china, as that fourday visit wraps up. We have a lot more coming, including full market checks. This is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates, exemption certificates or filing returns. AvalarAhhh Ahhh Ahhh ahhh rishaad just a bit of news coming through. The overnight rate has hit the highest level on record. Were looking at 5. 21 . Thats the cnh on the hong kong dollar rate. Also looking quickly at what that means. That could mean that we have got mortgage costs going up, as well as we have got probably the hong kong managing authority having to lend more money to banks. Evergrande is center of this. We also have commodities and focus. Iron ore on the way down again because of those ructions with property in china. Dont forget that china takes up 70 of all seaborne iron ore. The Company Plans to hold its production study. Discussing the outlook for crude with the American Energy summit which took place in oklahoma city. I think all of us in the industry have an opinion on oil prices, but usually we are wrong. So rather than answer that directly, i would like to say that the fact is that since china, brazil, india, and russia really had their growth and gdp spurt back in 2004, real wti prices have averaged more than 80. And so, i think that, to me, that indicates the midcycle price of oil is around 80. The reason prince as these has been doing what he has been doing recently is to balance the markets. Because there was a time of overspend followed by a long period of underspending in the industry, and then the pandemic. For now to bounce the markets, it is best for all of us. If he was not doing that, the prices could potentially go way up to over 100. But in balancing the market, you protect the downside so you have a healthy oil and gas industry. But also without damaging economies around the world. Some of the undersupplied was because you guys, shall players. Are you doing anything differently if we have spurts to 90 . Certainly our industry has gone to the point where we are practicing much more discipline than we used to practice. You have seen that prices have been moderated recently. That a lot of people have predicted 120 to 130 oil. You have not seen it because the industry does not want to go there. Since in that time period i have just described since 2004, prices were above 100 26 of the time. I dont think we are going to see that again. Are you more capital disciplined . We are capital disciplined. What that means for us as we dont increase oil significantly and in a market where we dont see the balance. Only be in a market where we would only see the balance where we would increase our production, and then it would be at a moderate pace. We are much more focused on returns than production volumes. Any recessionary fears, any demand restriction . Are you noticing anything on the backside in terms of demand . We dont see any demand destruction at this point. I dont think if prices went above 100 it would stay long enough to destroy demand. I really think we are continuing to see a gradual improvement. I think even any recession, i dont think that demand would drop so significantly that it would drop prices. So we are here at an Energy Security summit, and part of the line will be, lets unleash american oil. If you unleash american oil, oil can go to 40, 55. Youre not going to want that. Youre going to need higher prices. So if you got the goahead to be, you can do whatever you want, would you . Can you . Are there other constraints . The constraints really are that you make sure to increase value, that you dont destroy value. If you look, and that 26 of the time that prices were above 100, a lot of value was destroyed because we drove up the cost of what we were doing, we were inefficient at that activity level, the industry in general. And so now, i think there is a lot more discipline around how to do it, how to do it better, and how to not to get into an oversupply market. Rishaad that is the occidental ceo speaking with alix steel at the American Energy summit. A lot more coming up right here, as we see the Hong Kong Market with 35 minutes of trade left. 29 degrees celsius, looking to trade data out of the city a bit later on today. This is bloomber china markets less than a minute away from their lunch break. We are looking at the pressure being on these equity benchmarks in the country as we get these problems in evergrande, certainly at the center of pessimism zapping investor confidence. We have about three trading days left before we get off on that week of mainland holidays. Evergrande is saying one of their units failed to repay an onshore bond and that has moved things lower. We have a record fix in terms of where the estimates were but 731 is the figure and very little change currently. It is really all down to, they are off for lunch. As they do so you can see the hang seng gauge there as well. Just about 1 down and we are looking at levels we have not seen for this gauge which is about 30 lower, 29 down this year and it just slightly higher than the lows that it touched last october. It is all down to perhaps this group feet of efforts to bolster home sales in these problems going on at evergrande. While they have gone to lunch hang seng continues for another half an hour lets have a look at japan as traders returned to their destination. High treasury yields in tokyo, at the moment causing people not to take any risk on this particular market. It is all concentrated on whats happening at the nikkei i should say on the yen. Essentially another round of comments coming through from the finance minister there. Saying we are not going to rely on options and excess fx moves and will take action against those and in options effort to deter further weakening of the yen. Nothing really new here and as a result very will price action as it lurches up toward the 149 level against the dollar. There we go, markets to the downside, topix being a little by a couple of Companies Including what we have been seeing it tokyo as well. Toyota leading the declines. There we go and were going to look at whats going on in tokyo to whats been happening in soul eoul where Lg Electronics is looking at electronic vehicles to bolster growth and do more of a higher margin Mobility Services company. Chief north asia correspondent Stephen Engle joining us from the south korean capital. You caught up exclusively with the ceo. Was this the first foreign interview since he took the helm in 2021, what were his thoughts about strategy . Stephen it is extremely rare for lg leaders to talk especially to the foreign media and on camera. We got that exclusive interview yesterday here in seoul and the ceo william show is laying out another transformation of this group because back in 1989 it they got rid of their chip business selling and merging it with hyneks. But a few years ago they got out of the lower margin and saturated hand sets smartphone market, so where are going now . They are just about number one or two globally in the Home Appliances, washing machines, refrigerators, smart televisions and the like. What they would like to move into is a higher margin services. Creating a platform with these appliances, not only at home but all of those components they are making for electric vehicles. They are not building their own badged branded electric vehicle tv but they are going to supply to every maker of evs. Here the strategy, the ceo in my exclusive interview. Lg electronics will transform from its current position as a tech Home Appliance and consumer Electronic Company into a Smart Life Solution Company with a goal to achieve 80 billion u. S. Dollars in revenue by 2030. What will be the cornerstone of that strategy . You said the appliances are key but they are not highmargin products. Services would probably be more highvalue and also the telematics and the connectivity between the appliances not only in the home but in vehicles as well. That is true. In we have been in a consumer facing business for nearly 70 years. The biggest trend is Consumer Insight and a deep understanding of the consumer in their living spaces. Especially the home. But we are going beyond home and aggressively entering into other spaces, like commercial and mobility and even the virtual space like the metaverse. I would like to emphasize we are going to secure the Global Leadership in Home Appliances in consumer electronics. Because we need to generate cash and support and drive corporate wide transformation. It is also very Important Foundation for our success of platformbased services. We viewed our devices becoming a platform and providing multiple and diverse services. That will be our main stream and model for us. Stephen so the Vehicle Solutions division, you do a lot of components. You do the telematics, you do this inside the connectivity of the different infotainment systems and the like. So how much will ev space be a percentage of your company by 2030, and would you consider going into the ev space with your own branded product like foxconn is looking at . Like sony has already done . Stephen our vision is an engine for electronics now and it has been growing an average growth rate of 30 . Over the past decade and it accounts for 14 of total revenue in the first half of this year and our backlog is expected to reach 80 billion u. S. Dollars by the end of this year so we are in the middle of expanding our portfolio as the vehicle industry is evolving as a Software Defined vehicle. And fear question, no we have no intention to be an automaker. We are going to focus on what we can do well. So this means being innovative and a reliable partner for the ev automakers around the world. Stephen who are you really talking to in earnest with very active discussions right now . There have been reports that you could be making the apple car or help apple make it scar . Is there any truth to those discussions . William this is one of the most frequently asked questions we receive. I believe that is because the market recognizes us as a top player in the mobility sector and a proven record, we are confident and ready to cooperate with current automakers. Any future automakers as well. Stephen including apple if they do go forward. I know they are delayed until may be 2026, some of the autonomous technologies may needs more time to work out. William we welcome them. Stephen are you in direct talks with apple . William again, we are ready to cooperate with any future and current automakers. Including any brand. Stephen if you connect the dots between the Lg Group Companies you have the lg campus securing and procuring the elements needed to go into batteries and you have lg energysolutions as one of the worlds biggest ev battery makers. You have lg innotek regular camera modules, lg display potentially having displays in the windows of cars, and now Lg Electronics doing all the drivetrains. The inverters. And infotainment systems. You can see that the lg group is really positioning themselves to be a supplier into the ev market. Let the others badged them, whatever kind of car, apple car or all the other legacy automakers, they are going to supply the components into those evs. Rishi yes, it looks like we may have an lg motor at some point or another. Great stuff. Great interview. Our chief north asia correspondent. Coming up we will discuss the outlook for initial Public Offerings in india. And look at that Pipeline Companies are remaining cautious on what have been with swing markets. Jamie morgan Global Equity Capital Markets joining us next, this is bloomberg. With the Womens Tennis Association to remove boundaries. because this game is for everyone. Rishi hazy mumbai there. We have the nifty futures currently. Moving to the downside, the premarket is showing a gain for the nifty for about eight points. Showing markets they are, this is the futures we have right now pointing to that downward story. Lets get over to mumbai, and our Senior Editor is joining us with what we should watch out for today. A lot of things front and center not least of which a repeat which could be under pressure the oil rally which is faltering a tad at the moment. That is good news for india isnt it. The oil rally faltering because that is been one of the concerns that has led to some concern this month. We wrap it up for you in terms of where your markets are poised it has been a good solid year and we have seen Foreign Investment return to india and though in the last few days there has been some selling by foreign portfolio investors in the domestic demand for equities remains solid but there are concerns around oil prices. There are concerns how expensive the indian market is specifically some of the top traded stocks and there is some not very encouraging data. For instance the savings rate at a decade year low in those concerns about the macroeconomy in india persist. Of course the geopolitical angle and the india canada standoff play out over the course of the last several days. Then there is the global macro point of view, just heard from jamie dimon earlier this morning speaking with local india local media in india saying the worst scenario is the world is not prepared for a fed rate at 7 . Of course that is the worst Case Scenario at all of these playing into some of the caution in the Indian Markets this week. Rishi jamie dimon being interviewed there as well with this jp Morgan Summit taking place. Do you think the world is not prepared for 7 fed funds, what is the overall reaction to this . Menaka i think like he pointed out that is the worst Case Scenario. At this point in time based on all of the fed commentary the markets are expecting higher for longer yes but not much more higher from here. 7 is not something that investors here have started calculating in their estimates for the impact on the indian investment markets. But yes of course if that were to happen that would have Global Implications and india would not be spared. Rishi hold that thought. Because as we just mentioned jp morgan is having that annual Investment Summit in mumbai and joining us now is our Global Equity Capital Markets ahead at j. P. Morgan. Thank you so much for joining, it was a sense of what you had been feeling there, beating investors on the ground and what their take has been for this market which has been essentially and largely on fire. Given how money has been just pouring in. Good morning thank you for having us. This is our eighth summit in india and it is really exciting. I think every investor we speak to and every corporate we speak to, venture capitalist private equity venture capitalist. There is a palpable sense of the our entrepreneurial spirit really coming alive. I think there is excitement within the growth of the corporate whether it is the new Economy Companies, health care, consumer and fintech. I think there is a palpable sense and many of our Global Industries have come after a few years and with the excitement of the Global Economy, despite the risks jamie mentioned, and with that in india in particular i think theres a lot of interest to spend more time here. Rishi there has been a bit of a lull when it comes to the ipo pipeline in india but we have had a couple of optimistic listings in the u. S. I am talking instacart and arm holdings. Has that moved the dial at all and how do you expect this particular segment of the market which is sort of lucrative for banks such as yourself to pick up again . Achintya you are right, the lull in the market has been a global phenomenon not just limited to india. I think the environment right now, for the time being Interest Rates are in a position where the market is expecting that inflation will be under control and rates have almost peaked. Again there is a risk that doesnt happen but stagflation and higher rates for the time being i think investors have the Risk Appetite to invest in ipos. If you have Good Companies like the ones you mentioned in the u. S. , i think the ipo market window is open and india in particular has a slew of new Economy Companies who are doing a great job of not just growth but also profitability. And i think when you combine those characteristics of growth and profitability will find that the indian ipo market along with the Global Market will gradually open. I think it is also a question of when Companies Want to go public, when their shareholders want to exit, but i think definitely it is on trend of gradual roleplaying a normalization after perhaps two years of very high valuations. About 18 months of no activity, i think youre heading towards hopefully more normalized activity globally. Menaka what do you make of the chinese recovery at this point in time, Economic Policy there . Because a lot of the flows that return to india workflows that were leaving china and some cents. Achintya i partly agree but in my view i think china is going to continue to be an important part of the Global Market into the next few years. Theyre having some hick ups recently over the last year but more recently they have taken more policy actions which are favorable to the market. While india may have benefited in the short term i personally think both india and china can continue to get more outflows globally, these are two markets which will continue to grow in importance for investors. Across Asset Classes where there it is credit or equity, in the short term we might have benefited but i believe that investors are willing to put more money both in india and china. There will be periods where one country may have slight geopolitical risks or otherwise but i think it is not at the cost of one another but both countries will get increasing share of the global interest. Menaka so what kind of flows to continue to see from here and what risk scenario will change that in india . For instance, i know there is some concern around the geopolitical situation between india and canada at this point in time though it is not quite playing out in the indian equity markets. There are other issues, has become quite expensive or concerned about what will happen to the currency once indias inclusion in the bond index happens next year. How do you assess all of these . Achintya i think all of these risks remain and like any other market globally risks will always be there. It geopolitical risks are a part of the Global Economy not just india or china every country in the world has geopolitical risks. Election risks. I think whether it is oil prices, or higher rates, i think these risks will remain. But for the time being, we think india is going to benefit from increased foreign investor flows and i think india in particular is one of the more balanced markets in terms of domestic participation as well as global. I think we will continue to see unless there is an outlier in terms of oil prices, or further escalation, i think the investor flows are going to continue to be steady. And partly it will also be with the d flow as the d flow increases and more Companies Come that provides liquidity opportunity for a lot of investors. We are quite optimistic and certainly that has been the sentiment over the last day or so at the summit between Oil Investors and corporates. Menaka i know your mandate is global but forgive me for asking you one more local india question. What appeals to you most within the indian equity classes, whether it is amongst the top stocks or other areas of investment . Achintya i would say i am really excited about the new economy place in the top stocks there, but if you look at the top stocks in india i dont think that composition of top 10 stocks the market cap has change significantly in the last 10 years. Personally i am very excited about the new economy stocks. The entrepreneurial spirit in the tech space, we are adding incredible talent in software and technology. I think for the first time we are seeing the entrepreneurial spirit really come into being and i think we are seeing the benefit of scale effect. We have amazing successful founders who are becoming angel investors, those investors are putting more money into other companies. I think that formation and pace of very high quality new Economy Companies which are profitable and grow, and conserve the large demographics of india is very exciting. Globally we are seeing that tech rally in the tech ecosystem grow tremendously in the u. S. , and china. In latin america. I think its really indias time in the new economy. That is my particular focus going forward. Rishi does that mean that that is where you see the deals as well . Achintya i think yes they will definitely beat some of the largest deals in with that said Financial Services and consumers and health care, those four sectors. But certainly the most interesting sector in terms of new activity which we have not seen in the past will be tech. And my guess is 10 years from now when we look at the top 10 stocks by market cap that will not look like what we have today. Rishi absolutely. Also, what are we likely to see as well do we see any barriers for Indian Companies to enlist overseas . Achintya i think there are rules and regulations in place in india has rules where if you are in India Company and incorporated in india domestically, i think it is less about values and the rationale. And doesnt make economic sense for a company which is in which is in india to list outside . I think the indian ecosystem is very lucky because the domestic markets are liquid. If you look at the number of Companies Listed in india it is greater than the number listed in hong kong and the u. K. The market cap in india is greater than the market cap of the u. K. I think less about barriers. I think the Indian Companies who have Large Businesses here have a very strong market to look domestically and therefore the reason to go outside will be driven by fundamental Business Needs in terms of maybe it is a Global Business not just india business. I think for those companies that have a Global Business i dont think there will be barriers. Rishi very quickly and 20 seconds or less where you see the greatest ipo up in asia now . Achintya for the time being it is india. I think china will come back, chinese equity markets particularly in the hong kong listings will follow, but for the time being it is india. Bloomberg great talk rishi great talking to you Global Capital equities had their and our editor in mumbai. Of course we will get to all the latest updates on all things india with maneka by subscribing to our india edition newsletter. We have a lot more coming up on the program, this is bloomberg. Rishi lets have a look at some of the stories were following bloomberg learning the fcc is planning to bring back a Net Neutrality rule governing internet providers. Sources say they will announce plans as soon as today. We have seen some of these come through and this has been confirmed as bringing back rules to keep providers from unfairly interfering with internet traffic. The shift comes as the commission turned to majority democratcontrolled. Bloomberg learning that chinese electric carmakers are concerned about raising money from investors on the back of concernings on the back of approaching investors from the middle east and the fundraising could happen as soon as next year. This company is nine years old. It is yet to turn a profit, with an bigger than anticipated loss of over 800 million in the last quarter. Sticking with all things automotive we have got this, nissan sticking to its plan to produce only evs in europe by 2030. This is despite britain pushing back plans to and sale of petrol and diesel cars. The ceo says there is no turning back now. He goes on to add that the japanese carmaker believes it is the right thing to do for the business as well as the planet. And to leave you with these futures, german 10 year bonds showing more weakness in the prices as we see yields continue to accelerate on both the treasury and european bond markets. This is bloomberg. Thanks to avalara, we can calculate 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 hey corporate types. Would you stop calling each other rock stars . Youre a rock star. You are a rock star. No more calling coworkers rock stars. Look, its great that you use workday to transform your business. But it still doesnt make you a rock star. So unless you work with an actual rock star. Hi, im ozwald. Hello ozwald. Pam, you are a rock i wasnt going to say it. We have been apparition in our country right now but nonetheless we still have to strive for unity. Sometimes you achieve it, sometimes you dont but we have a responsibility to act. In a bipartisan, unifying, transparent, accountable way. Rishi this is bloomberg a break middle east and africa, treasury yields long and hedging multiyear highs the expectation is the Federal Reserve will hold Interest Rates higher for longer. The