Transcripts For BLOOMBERG Bloomberg 20240703

Rishaad this is what it is looking like for equities. No trading in hong kong. It is a public holiday. Looking at active futures for the chinese market. Overall asia is feeling at down 3 10 of 1 . We do have many investors taking the opportunity not to go to work as is the case in hong kong where they have no choice. S p futures on the way up after the deep losses we saw in the session friday on wall street. Looking at the nikkei 225 coming off the lows of the day. Action there, political in part. The ldp may have lost a special election seats. That would be a blow for the unpopular president at the moment. Looking at the bond picture, yields where they were we still on friday. Japanese 10 year yields grinding to the upside up to 85 basis points. Wti off as the middle east situation seems to be simmering. Perhaps the calm before the storm. 70 five cent move to the downside for new york crude. A lot is going to be contingent on what the bank of japan does at the end of the month. Haidi this is the topic of our question. When will the be a the boj and its negative policy rate . If you look at the responses, it is just a month away. According to just about half responded saying in the first half of 2024. A brave quarter saying it is going to come in december and 19 saying it will be sometime later on. The majority of the 315 responded saying we are likely to see the unwinding of subzero rates in the first half of 2024. Ansi tightening during that time as a result. Rishaad the other question is, which asset class is likely to suffer the most from jgb yields . Jgb yields moving to the upside. Will it be treasuries . Will it be the dollar . Will it be the whole gamut of the Global Market ecosystem as one of our guests did describe the other day suggesting if they did normalize policy we would be like the butterfly effect. That is going to be holding any water. One to watch out for here. Rishaad the volatility is what we are watching out for. The butterfly effect. The repatriation effect when it comes to japanese funds. Japanese investors with huge holdings across u. S. , european and australian debt potentially at stake. Take a look at how we are trading across the rest of the region. We are seeing asian stocks largely extending those losses. Across those Asset Classes, you are seeing quite a bit of red across the board. Oil and gold softening on account of some of the pullback in geopolitical risk in the middle east. A fourth day of decline for equities. The yen on watch as it briefly breached 152 the dollar. We have seen that as a point for intervention. Perhaps the goalposts have shifted somewhat for the boj. Rishaad lets try to make sense of the Market Action and what is going on. Edmund gomez is the chief Investment Officer at smg capital. We talked about it but it is not just the elephant in the room. It is part of the room itself. That is the alpha that is geopolitics. It is not just what is going on in the middle east. There is a host of factors and conflicts playing a part in what is happening in terms of the mentality of the investment community. At the backdrop you have the u. S. China relationship which at this point is moving away from each other rather than close to each other. You have the Ukraine Russia problem simmer for a long time. You have had problems in armenia and azerbaijan. Now you have got a third area which has opened up which is what is happening in the middle east with israel and hamas. You dont want to see a fourth area open up somewhere around the world where suddenly the larger nations are taking stands versus each other through proxies. We want to see that settled down. This is part of an unfolding saga which we would like to see come to an end and the larger countries come to the table and Start Talking rather than moving away from each other. Rishaad you mentioned what is happening with armenia and azerbaijan. This is something which is people are looking at the logic behind this and transposing it onto russia as a whole and suggesting this is a motif of the existential problem that is facing russia as a state itself. From a geopolitical standpoint, every country is doing what is best for itself. There is no getting away from that. At the same time, to the extent there is a requirement to change the status quo, clearly the status quo and whoever benefits would one to stay in the status quo. Weight by the sidelines . To the extent there is uncertainty come investors dont like that. Whether it is Geopolitical Uncertainty which trumps every other sort of uncertainty, even Federal Reserve policy were Monetary Policy across central banks. This is the joker in the pack which can change. Dynamics on the ground investors will wait on the sidelines for now. Haidi we have had heightened periods of Geopolitical Uncertainty for a long time now. Talking about election cycles and attention would going into more uncertainty with the u. S. Election cycle is a will. Do you think a lot of that is priced in . It is going to come down to where the fed goes and how long will it take to get there. It is fairly binary at this point. We have had Geopolitical Uncertainty in the past. Right now we are experiencing wars across three different fronts. That is something we do not believe has been priced in. Adding into the end of the year where there is going to be a liquidity, we have taken risk off the table. Haidi previous belts of Geopolitical Uncertainty. We also had the bedrock of stronger growth out of china. You think that still provides a viable alternative . To the extent growth is good and we have seen the gdp numbers last week supported. You have regulatory pressures which keep developing various kinds of inquiries which happen or rules enforced in different ways. That is not good for companies. Not good for economics. Investors need to see the regulators taking a stance they have cleared out all the inquiries they have. A level Playing Field and some amount of his ability for the next four to five years. Rishaad what about the decoupling story and how that plays out in terms of how you invest . What prison are you looking at that through . To the extent there is decoupling, we expect that to continue. If youre looking at the u. S. , there are Certain Industries which in the past have not been able to get support from china at the right time in terms of supply chains. We believe the u. S. Is reassuring a lot of their production. There is a numbing space industry which is benefiting from the fact there are going to be rockets, satellites. It is getting a lot more traction. A lot of that production is going to happen in the u. S. We believe u. S. Industrials would be a good place to be. Not the same topline growth you see in tech names but improvement dynamics for the mediumterm. Haidi japan has been the market darling. Your view is contrarian. Do you think that is about to start to fade . We did have a survey of investors. More than half of them seeing an imminent move from the bank of japan. That could happen. The view we have taken on japan is to stay away for this point in time. Qe has been where the bank of japan has been focused. They own a majority part of the jgb market. They own around six or 7 of the japanese equity market. That is something that if those flows stopped and reversed will certainly lead investors to start taking profits. We are waiting on the sidelines. If there is a massive rake of 150 on dollaryen just because momentum creators are chasing it. That is a significant possibility. They are pushing for that. We would be happy to stay on the sidelines. It is important to use optionality because if you have a weekend announcement, you come in on a monday morning, there is a massive gap, there is no way pluses can help you at that point. This is the thing you were saying is the big question which is how does 2023 close out and that brings you to talk to yourself about how you start positioning for 2024. I guess it needs to be played in a nimble active basis. Watching things develop as they play out. Any kind of initiatives is good news. The fed starting to pull back is good news. Investors have missed out on the rally and who played the world is coming to an end theme which was prevalent at the start of the year. It will start to come back into the upside. You want to play that in a way which is extremely nimble. Volatility is low. For now we are sitting on the sidelines until we get some clarity. Rishaad thank you very much. He is the chief Investment Officer to s gmc capital. Lets tell you what we have coming up. Looking at the latest on the israel hamas war. Diplomatic efforts trying to get underway to secure the release of more hostages. That story and market implications and more on the way. This is bloomberg. Rishaad we are approaching a quarter past 5 00 in the morning in gaza and israel. Down to the timing of this Ground Invasion into the strip which remains uncertain. Israeli support for diplomatic efforts to release hostages. Senior editor bill faries is with us. What are people making of this as we wait for negotiations behind the scenes . We have had at least two released. I think that has raised some hopes others could be released with this mediation from qatar. Released the possibility of more releases is seen as delaying a potential Ground Invasion. Israel is continuing to build ups of forces. Build up its forces. We saw a large convoy headed to southern gaza. In terms of the needs it is a drop in the bucket. The situation remains dire and very fluid. Have been changing by the moment. Still concerns about whether a second front might open up in this conflict with hezbollah. Rishaad what are the key to haidi what are the Key Developments we are watching for . We are going to look to see whether the aid convoys continue. Whether there is any more progress in the talks over the hostages and we have some reporting the came in late asia time friday in u. S. And israeli officials starting to have talks about what would happen in gaza if there is a successful Ground Invasion by israel. What kind of government or what kind of authority would rule in that area. Israel has made clear they did not want to keep forces on the ground and administer gaza after they have an invasion and potentially replaces hamas. People are much more focused on the humanitarian situation. And whither these negotiations over hostages will continue. Haidi bill faries with the latest. The worlds biggest maker of apple iphones is under investigation in china. Foxconn says it will collaborate with chinese authorities the unspecified probes. Lets bring in our chief north asia correspondent Stephen Engle in hong kong. What do we know at this point . We dont know a lot of the details of the investigations other than what we are getting from state media. The listed part of the foxconn empire, the biggest maker of iphones globally. Most of the made in jim joe. Known as iphone city. The mainland saying they are complying with authorities in china on undisclosed investigations. The global times, the state media newspaper, saying tax authorities have launched investigations into may be some tax improprieties at the affiliates. As well as another separate investigation by Natural Resources officials about possible landuse violations. This is iphone city in Central China where they make most of the worlds iphones. Potentially at least four different investigations by tax authorities and landuse officials. That brings a lot of questions into what are the violations or potential or alleged violations if any or is it simply a procedural matter. We simply do not know. Shareholders are a little spooked. We are seeing hon hai shares down 2. 5 in taiwan. I dont have this chart made. Maybe the gallery can bring it up. Stock code is 60113 a in china. Foxconn Internet Company down by 10 . The most ever down one you on 62. There are reverberations being felt in the market because of this news flow. Rishaad we were talking earlier. I was asking whether there was an alternative motive. The founder of hon hai, whether his political ambitions had anything to do with this. It may well have something. What is the deal . I guess it would be speculative at best. We are not going to get any proof perhaps china is doing an intimidation game on foxconn to also send the message to other Business Leaders in taiwan. Perhaps those who would not be as engaged in Mainland China. Terry goa has built his empire, he was the founder of foxconn he built his empire with those factories in china. When i talk to him in august, he said it would be disastrous to have to pull out of Mainland China for Taiwanese Companies. He is a pro engagement candidate. He used to be linked to the opposition party. Now he is running as an independent. He has been blasted by the other side in taiwan through the Election Campaign for being a china appeaser. At the time of his announcing his campaign in august, he said i will not bow to chinas threats. Other candidates are latching onto this news flow. We have the candidate for the other side, the dpp, he is the vice president. The candidate for president jude he says china should not force Taiwanese Companies to declare their position in an Election Campaign like this. China should acknowledge Taiwanese Companies contribute to the economy greatly. And obviously foxconn is a good example of that. A huge employer across china. And of course the big maker of apple products. We need to watch apple. When he to watch foxconn Going Forward. Dont know if these are alleged crimes being committed or whether this is going to have impact on production. Rishaad Stephen Engle, chief north asia correspondent. Its have a look at some of the other stories we are checking out for you today. The philippine saying two of its vessels collided with chinese boats during a supply mission to a southeast china outpost. Filipino authorities condemning the incident calling it irresponsible and illegal and saying they have summoned the chinese envoy. Beijing accusing the Philippine Coast guard ships of entering disputed waters and accusing them of sending illegal Building Materials to warships. The australian Prime Minister kicking off a month of diplomatic engagements. Arriving in washington on monday with a delegation of is this leaders. He is going to me with president biden. Also go to beijing where he will meet with chinese president xi jinping. He will attend the Pacific Island forum before returning to the u. S. For the apec summit in san francisco. Argentinas president ial election heading for a runoff in november between the economy minister and the libertarian outsider. Defied expectations to snatch the lead. The establishment pro business candidate is said to finish third. The runoff was the scenario investors feared the most because it prolongs argentinas economic uncertainty. Rishaad you can get more on your bloomberg on all of this. Tliv to get commentary analysis from our team of expert editors. There is much more ahead. This is bloomberg. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Rishaad lets have a look at the price action in the commodities complex. Already at the moment. Looking at the oil price. Seeing it on the way down. Tracking some of the losses in wider equity markets. Israel holding off from a Ground Invasion of gaza. Is happening among diplomatic efforts to secure the release of more hostages. We have had two hostages released. There is a hope negotiations behind the scenes will lead to more civilians being held by hamas. Being released as well. We had iron ore prices in focus. Iron ore having a rough time of it. Further weakness. Perhaps it is down in large part what we have been witnessing in terms of the Economic Data coming out of china. Tokyo steel on the way down saying they are seeing weak secondquarter demand. Uncertain outlook. Basically, we have a lot of Companies Looking to lose jobs. The china benchmarks very much in focus. Haidi not in the right direction if you are in equity market bowl. This is building off the back of last weeks losses. Csi 300 down more than 4 last week. We continue to further a race those gains see in the reopening rally. Msci china a little softer. Shanghai comp down by 1 . More to come. This is bloomberg. Haidi it is 11 29 tokyo. Japanese markets are going to a break in a minute. We are seeing asian stocks failing to again much ground at the moment. We have seen the laggards including chinese equities. We are seeing investors taking a cautious stance given latest developments with the conflict in the middle east. The nikkei volatility index is higher than it has been in a year and we are watching for potential intervention when it comes to the yen f we have seen as we have seen the breach of 152 the dollar. Interestingly, we had the mliv pulse survey that suggested half of respondents, a majority expecting the unwind of subzero by the first half of 2024. Policy risk i had as well. Rishaad absolutely, and we are looking at what is going on with the curve. Not much at the moment. We are looking at jgb futures and it is continuing to track down, grinding lower. Mark cranfield is with me now. This continues to have the bond market with pressure put on it. Well something break . Can it break and will they let it . Mark it is like child balloons. There are more and more press reports coming out alleging the bank of japan is on the verge of doing something. And weve got more time before the meeting that could still contract as they have done before. Sometimes they counteract Market Reaction with wording to suggest nothing will change. They are trying to gain an idea of how far the traders are willing to push this before they have to come in and stabilize everything. There is more time before the blackout period for the bank of japan meeting. In the next couple of days, we could see action, people will continue to push for the higher courts 0. 9 . Some people think that is a threshold that the boj will be uncomfortable with. If we get close to their, you can see boj speakers saying calm down and this has gone too far. If we dont reach that before the boj meeting, it puts less pressure on them to come up with an eight change at all. Any change at all. They are nervous because yields have gone up quicker than expected partly because the u. S. Yields have been rising so fast, which they cant control. This feeds back into the dollaryen. It is around 150. Somehow, the market has decided if they dont be real conservative action concerted action, it will take the dollar higher. Rishaad how closely are the ministry of finance looking at the yen side of things and then the boj looking at the fixed income side. Are they acting in concert . Do they have the same ultimate goals . Mark they probably do it in the sense of the weakness of the yen is starting to become an inflation problem for japan. That is everybodys issue and the boj could do something to help out. If they do away with yield curve control, the yields will naturally rise higher and support the yen bring it back to a more reasonable level. In the meantime, if the boj does not do anything, it all goes back to the ministry of finance which is a tough job given the fact that the world wants to own u. S. Dollars and is a great carry trade. A difficult job on both sides. Haidi difficult job for the chinese. What do investors need to see . Obviously, the hon hai, foxconn develop ands are not helping when it comes to Foreign Investors but broadly, we have seen more and more declines when it comes to trading in china. Mark it is not helpful. On the one hand, you hear chinese leaders say they want to stimulate investment ideas from foreigners and they want to bring more money back to onshore markets in china. Yet soon afterwards we see more intervention in specific sectors whether it is what we are discussing here with hon hai or property to sector or tech sector. They do not like the idea of too much government interference what they consider to be the private sector. That will put them off and the numbers at the end of last weeks in terms of yuan outflows, the biggest we have seen in the past five years. That is a clear sign that money is not going back to china no matter how much the chinese authorities want to address the fact that they think their markets are undervalued. They could stay undervalued for a very long time until they start showing Foreign Investors see it as not only safe but there is an upside to putting your money into the market. That would need a strengthening yuan in the Chinese Government to step back from getting too involved in the market on a daytoday basis. Haidi that was bloombergs mliv strategist Mark Cranfield on the of Political Uncertainty when it comes to the markets. We are watching argentina and the election will be settled in a runoff between the economy minister sergio masa and the libertarian outsider javier millet. He defied expectations to snatch the lead in sundays election. We have been hearing a lot about unity and hard work from masa as he has been speaking but this is the most politically polarizing scenario that investors are hoping to avoid. Yes, the scenario between the runoff between sergio masa running currency control and capital restrictions in the outsider heavier millet was a proposal to dollarized argentinas economy and it was a dreaded and feared scenario. We started this morning with a three way race and are going to a headtohead battle in november 19 between matzoh and millet massa and milei. He surged back up to first place gaining over 1. 5 million extra votes through a mix of spending policies and recrafting his campaign message. Rishaad how are the markets expected to react to all this . Well, thats a great question. We will probably see more pressure on argentinas currency excuse me more pressure on argentinas Exchange Rate. The peso, we have multiple Exchange Rates here. The official Exchange Rate is controlled by the government at the parallel rate has been fluctuating with volatility and that will continue in the weeks leading up to the runoff vote. Bond investors are probably not going to be happy either. They have soured on the current government run by sergio massa with prices around . 30 on the dollar or less and many fear that javier milei cannot govern with a Fragmented Congress that tends to go left for many decades. This will not be an outcome that Bond Investors like and the currency will see pressure probably in the coming days. Rishaad what are some of the challenges that argentinas next president will inherit . This is a ludicrous question because the program does not have all day. Patrick absolutely. It is impressive that the economy ministers overseeing such an economic crisis in argentina has carved out a clear path to the presidency. Whether it is sergio massa or javier milei, they will inherit titanic challenges. Inflation is the highest level since argentina was exiting hyperinflation in the early 1990s. The economy is going into a recession and they have to pay 44 billion back to the imf over the next several years. How do you reset the economy, cool inflation, and find a way to pay back the imf and wall street creditors after argentina defaulted in 2020. It is a difficult tight rope activity to thread the needle on, and its not clear that sergio massa or javier milei has an answer and the markets will be on edge for the next two weeks. Rishaad Patrick Gillespie there in buenos aires joining us. Lets go to taipei with a tightlys new government where the taiwanese government is talking about the probe into hon hai. The iphone assembler is diving 3 because of beijing kicking off a probe into what the company is up to. Investigation into operations in china are targeting the key supplier for apple and at the same time one of chinas biggest employers. Haidi it certainly is a story that is not helping Market Sentiment at the moment. More downside for chinese equities. Next we will be live from the Singapore International energy week and speaking with the ceo of Renewable Energy and addressing the Biggest Challenges when it comes to the development of Green Energy Projects in indonesia. This is bloomberg. All that planning has paid off. Looks like you can make this work. We can make this work. And the feeling of confidence that comes from our advice . I can make this work. That seems to be universal. I can make this work. I can make this work. No wonder more than 9 out of 10 clients are likely to recommend us. Because advice worth listening to is advice worth talking about. Ameriprise financial. Haidi thank indonesia could be starting a new tightening cycle with economists expecting more increases before the end of the year. Lets bring in our report prepared what are the Market Expectations at the moment . It will not be a one and done for bank indonesia. Economists penciling in 2550 basis points before the end of the year which would make a record high all the way to 6. 5 . For bank indonesia, they have come from being a very reluctant hiker to gaining giving a hawkish signal. The governor said they will assess thing month on month. It depends and local tensions and the fed hikes and how they progress this year. The governor will be hoping that the hawkish signal will be enough to deter currency vigilantes from selling off indonesian assets whether the signal is working remains to be seen because rupiah is still down 2. 8 this month alone and is asias worst performer. Rishaad doesnt it smack, this move of them doing something that people are saying is bank of indonesia seeing something that we dont actually be worried and therefore scoring a goal for themselves . Claire it is a mixed signal. As early as i told her october, the governor said they were considering a cut and things were looking fine and inflation was down in the rupiah has been manageable. It is a sharp turnaround, but if we know the track record of them, they are not averse to taking preemptive and overlooking actions. Previous cycles, they have hiked with large moves and in quick succession. If this is the start of a new hiking cycle, expect more to come. Haidi claire jiao jakarta. The Singapore International energy week is underway where policymakers and executives gather to share insights on the sector. Joining us now is is dannif danusaputro. Great to have you with us. Let me start off with the starting point when it comes to fossil fuel infrastructure for indonesia. Are we at the peak now or will we see further investments . Dannif we are not at the peak for hydrocarbon in indonesia. We are still going to see it increase because donations gdp growth is at 5 . So, as the ceo, we need to increase the hydrocarbon but make sure the capacity of the Carbon Emissions will be lower. Haidi there has been a lots of concerning data when it comes to the pace and scale of the Energy Transition we are seeing. Do you think the ability to meet target is still there . Dannif it is challenging like any other part of the world. We think the target for net zero emission target for indonesia is a challenging target, but we like to look at the opportunities that indonesia has. We have resources with geothermal that needs to be unlocked. The target is quite challenging. Rishaad absolutely, and what are the challenges . Give us more of a sense. You have told us about the biggest ones, but they are more nuanced than just that one thing arent they . Dannif can you repeat the question . Rishaad you outlined some of the challenges, but can you give us an idea of what they mean in the grand scheme of things because they are very nuanced. They are obvious but small ones which get into the weight of this position. Dannif yeah, as i said, the target is challenging but there are opportunities for indonesia to progress with the Energy Transition. And pertamina, the strategy is to increase the hydrocarbon productions but make sure the emissions are reduced. One example is increasing biofuels like diesel and ethanol split develop new green businesses. This is to make sure pertamina will provide energy low Carbon Emissions. Rishaad absolutely, and youve got targets there for this transition to take place. What about the timeline . In terms of achieving the goals and secondly, is there a topdown approach on the government guiding you here and therefore making it a holistic and concerted effort for people to work in tandem to achieve the gains which would arise from what you are doing . Dannif yeah, the timeline, we set the target at 2060 or sooner but the key for indonesia and other emerging markets, we still have subsidized program, even for our gasoline. That makes it a challenge, how to make the energy affordable. That is a Government Program policy thats very important but they also are competing with a programming for the government. We have to balance affordability , maintain reliability, and help indonesia. We are doing this with a challenging infrastructure but we like to concentrate on the opportunities. There are potential technologies to make the cost lower and the support from the financiers, we can make the financing more affordable. Haidi what about the capacity to export green energy and green power to other countries . Is that an ambition for the company . Dannif yes, we are seriously looking into that opportunity to export electronic to neighboring countries because indonesia has huge potential with land. We are working with our counterparties to make it happen. Obviously, we are doing this in the regulations for renewable. Rishaad shouldnt you be concentrating on what you are doing within indonesia before you look at exporting thus . Dannif yeah, obviously, on the power, we were together with pln and these companies to achieve that zero net zero and use of thermal codes. Pertamina is also looking into mobilitys. Theres a lot to be done on the Passenger Car and other industries. We are working to reduce carbon intensities and we are doing this with pertamina which has partners with the technologies to achieve affordability in the process and the auto sector. We Work Together with pln on the mobility sectors and we Work Together with partners. Rishaad great talking to you. Dannif danusaputro, chief executive at pertamina new and Renewable Energy. That is a look at their green ambitions. We have a full on market check with live images here of singapore. This is bloomberg. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Rishaad this is a look at the bond markets in the u. S. Many of them are below the five handle. It is quite something with regards to this very convoluted yield curve. We have treasuries essentially at the moment having a little bit of a pause. They are perhaps unwinding part of the surge that we had on friday. The traders are seeking havens before the weekend. Looking at the yield on the 10 year at 4. 97. Multiyear highs as far as the yields go. At the moment, fears of policymakers slamming the brakes too hard on the economy as well. Former u. S. Treasury secretary Lawrence Summers says the fed will have to weigh in on the growing mountain of debt that the government has because of implications for Interest Rates. Concerns about the fiscal tuition attributing to a continue receiving to a runup in the u. S. Treasury bond yields. You have a supplydemand imbalance that is something that makes markets move. I think it is something that has to be watched very closely and i think the fed has an obligation to be ready to assure the liquidity and functioning of the treasury market. But as is always true, david, there is a difference between a volatile market in response to new information when there is a lot of new information coming and some of it may not be good. That is one thing. It is a quite different thing when you have a nonvolatile, an illiquid and not functioning market. I have not seen evidence yet that that is where the treasury market is, but certainly that is something that the fed and particularly its outpost in new york needs to be watching closely. Rishaad former u. S. Treasury secretary speaking to david westin about the fiscal deficit and bond yields. Vietnams Prime Minister is seeing 20 gdp growth between 6 and 6. 5 as 2023 will have growth of 5 . That is below target according to the Prime Minister. Haidi lets look at the markets. Not a lot of good news for regional markets. Hong kong is shut for a holiday. Take a look at the downside when it comes to trading in korean assets at the moment. We are actually seeing the kospi one the better performers if you will down by 0. 5 . Big tech are looking flat at the moment. This is bloomberg. Haidi it is almost 11 00 a. M. In shanghai and hong kong. Im haidi stroudwatts in sydney. Rishaad im Rishaad Salamat in singapore. Asian equities on the way down or a fourth day. Golden oil prices easing on the waning haven demand. Traders are watching for yen intervention at the after the currency briefly reach the 150 level. The offensive into gaza may be delayed as israel is trying to get more hostages release. The key apple supplier hon hai dropping after beijing launched a series of investigations into its operations and china. In china. Haidi this is the picture as we get to the start of the trading session. India in focus and we are watching the rupee given the Downside Pressure we have seen across a lot of asian currencies, especially immersion emerging asian currencies. Broader markets are looking like a sea of red. We saw a little bit of bright side when it comes to early exports numbers out of korea potentially pointing to a bit more of a semblance of recovery for Global Demand but that is not the narrative as we continue to see further downside when it comes to china stocks. This is the make or break moment for chinese equities given the risk reward. You could assume that traders could potentially try to play for a bounce on the session given we have seen all those gains from that recovery rally now wiped out. Rishaad lets have a at what we have in terms of the open for the bangkok market but it is a holiday there. So we are not looking at that we are looking at the rupee which recently managed to get away from the record lows against the dollar pared we are trading at 83. The futures are indicating a flat start to the trading day given their value. Overall, asiapacific markets are to the downside. Some of these companies which may be in the mix with the cash open and about 43 minutes or thereabouts. We are looking at adani power, also the pcl vcpl. Dsw energies of the secondquarter net meeting and we have paytm and we were looking at this on friday out with net losses for the Second Quarter which were much better than had been anticipated. Those are some of the companies we are looking at for when the trading day gets underway in mumbai. We have also questions about the boj. Haidi theres always questions about the boj and the yen as well. We saw a little 50 level being breached and does that flag high intervention risk . We shall see. The beds are being placed on with a negative policy rate, extraordinary subzero rates come to an end. The latest mliv pulse survey of over 300 survey participants saying that 51 , a majority say the first half of 2024 is when we will see the negative rates end. About a quarter people say could be sooner in december. 8 saying at the next meeting. The question has applications. Is it likely to bring significant volatility when it comes to bond markets . The largest portion of that response, 61 seeing a reverberation through World Markets with the biggest consequence being seen in terms of what we potentially see for u. S. Treasuries. Rishaad we are also looking at Asset Classes which are likely to suffer the most from the jgb yields going up and normalization of Monetary Policy. We had a guest suggesting it could be the butterfly effect, affecting all Asset Classes. Looking at whether it would be u. S. Treasurys which suffer the most and u. S. Dollar on european government bonds. Pretty much even stephen with regards to the feeling about which one would be the class which actually does get hit the most. There we go. It will be contingent on with the Federal Reserve does as well. It is a bit like criminology to work out what is going on with the thinking there. Haidi from the boj to the fed, investors are always weighing comments from fed speakers. Cleveland fed president Loretta Mester spoke this weekend in new york. Take a listen to what she had to say. Regardless of the decision made at our next meeting, if the economy goes as anticipated, we are near or at a Holding Point on the fed funds rate as we accumulate more information on economic and financial developments and assess the effect of the tightening and financial conditions. That has already occurred. Rishaad john, we have all the speakers all the time and back in the day there were many voices. Are there too many of them talking at the same time now and muddying the waters . Maybe we should rely on the chair and vice chair. Every day we get a new speaker. John there are a lot of speakers but this is nothing new. We have seen a range of views for the fed but i think we can see a pretty consistent pattern overall that we are at or near this rate peak as she says and i suspect we are at it already. I dont see why the fed needs to hike again. We had to consider long end of the bond yield curve in the u. S. And their doing further tightening. That is a critical factor in why they will not be hiking anymore. Rishaad the mood music is may be no more hiking the longer and higher i suppose. That means the dollar likewise remains in the same sort of vote or does it . John that is what has been interesting about the last leg higher at the long end of the curve because you saw the dollar under responding to that relative to former moves whether was the fed signaling or rate hikes move the dollar or the longer end going up. What is that about . Is it a recognition that this cannot continue in the fed might have to intervene . As of the dollar yen Holding Things back and uncertainty around 150 level . Im not sure i understand this. Is it signaling that they are at or near the peak so the longer end is less important . There is a lot of pressure on the situation especially the dollaryen the u. S. Yields continue higher. Haidi do you see a significant moves occurring when it comes to the dollar yuan . John that is more difficult to call because it is about a policy decision from china and whether they want to allow it to go above the historical range we have had here 735 plus. They are defending that level to some degree and maybe want to continue to do so and signal they are not interested in seeing further yuan evaluation but that is also part of the dollar picture and this pressurized situation if the u. S. Yields continue higher and if Commodity Prices, especially energy, go higher as well. Haidi a goes back to Dollar Strength. We have seen the ringgit at last levels since the Asian Financial crisis. Is it the same quandary this time when it comes to weakness and the currencies and are there other tools available this time . John the u. S. Dollar is a global money. When we have the u. S. Dollar and rates going higher like this the long end of the yield curve, there is a dollar liquidity problem globally and we are seeing that stress and currencies as a reflection of that. The classic emergingmarket pattern, the central bank had to respond with a classical rate hike regime but this is a Serious Business with a dollar liquidity situation. It will continue to be serious illness until the fed intervenes and we have crossed the rubicon and the countdown towards the fed having to intervene because the u. S. Treasury market will experience dysfunction with these types of moves at the long end of the curve. Haidi you said the yuan is hard to call and depends on fiscal moves that we could see. Is it easier to look at the proxies . Do you see any reason for the aussie to rebound because a diplomatic relationship seems to be improving . John the aussie is weak and will continue to remain so as long as key Commodity Prices are quite weak. We saw a pop and linked to the rba minutes and hawkishness there compared to what we are seeing elsewhere. But as long as the proxies are under pressure, there is no growth story coming out of asia driven by Commodity Prices. The Australian Dollar continues to linger. There is a huge buying opportunity for the aussie in the coming six months once the story bottoms out. For now, i am not inspired to buy the aussie except maybe a relative play versus the new Zealand Dollar where there is divergence in the central bank outlook. Rishaad is the u. S. They cant afford the dollar where does and with yields where they are. If they see the dollar perhaps devalued, they can then find themselves in a position where that creates inflation and we remember what happened in the late 70s and how that was the genesis of what happened in the early 1980s and then skyrocketing price rises that we saw that paul volcker had to correct. John it is a difficult situation in the u. S. With the economy cratering. We have the fantastic q3 gdp number coming out but these long and lagging effects of higher rates eventually had to. The curious thing here and you have a refinancing cycle. Theres a heck of a lot of debt refinance and the glory days of zero Interest Rates in 2020 and 2021. If you are refinanced and you have a low payment and perhaps you have a pay raise, the relative price of your home payment is going down with the corporate debt and other things on the faster it rate will be refinancing the next couple of years. These effects will be through to the economy. We are seeing slowing of the economy going into q1 next year with the played out consumer, the income boost during the pandemic years depleted. Credit card usage is soaring. The highest default on auto loans and delinquency on these loans in a long time. The cycle will eventually establish itself. It is a classical recession. It does not have to be doom and gloom but just a classical recession playing out. Haidi john hardy, head of fx strategy at saxo. On wednesday, john lee will be giving a policy address and that has been growing doubt about his administrations ability to navigate the challenging business macroeconomic environment. We expect the ecb to keep Interest Rates on hold we will get rate decisions from turkiye and canada. Rishaad inflation readings throughout asia. Bloomberg expecting year on year price gains in singapore utility bills remain pressure points when it comes to australias inflation basket. That should keep the reserve bank there on edge. Economic data also in gdp from south korea, and the u. S. As john was referring to. We have japans bank pmi numbers and ppi figures from south korea, industrial profits from china which should give us an idea about the gdp. Haidi we look at the latest when it comes to the israelhamas war as a diplomatic efforts get underway to secure the release of more hostages. This is bloomberg. Rishaad this is bloomberg markets. We are looking at the conflict in the middle east we have the timing of a Ground Invasion into the gaza strip remaining uncertain against the background of diplomatic efforts to secure the release of further hostages. Derek wallbank is with us now. It is two hospices being released and at the moment, negotiations going on in the background. Derek that is it exactly it. They are two big things going on, a big american plush to release more hostages and try to do that as a way to take the temperature down possibly and see some positive signs that they could possibly be going here. Look, they are not a lot of good options on the table right now. As people look at the situation, they are trying to figure out how you it escalating further and i mean how do you keep it from escalating further within its immediate situation and region but how do you prevent it from becoming a wider regional conflict . Both of those things are urgent questions but also things that people dont have the answer to. One thought is if there are hostages who are released, maybe that gives us space for diplomacy there. The more time that there is not shooting going on and there is talking instead, maybe there are things that can be done. There are not a lot of options on the table right now from an International Community perspective. Earlier today, the white house and joe biden and several other allied leaders put out a statement saying they were trying to keep this situation from spreading wider. Rishaad that is the problem, isnt it . The dangers of a wider conflagration right now and people are looking at southern lebanon and hezbollah. Derek thats exactly right. You have a situation with hamas and gaza that israel is obviously very focused on right now. If you Start Talking about hezbollah and lebanon, that is a different frontier. If you talk about how iran is involved in that and has talked about its own redlines visavis this conflict. If iran gets involved in this, it further has escalation. Haidi managing editor for breaking news Derek Wallbank there in singapore. The worlds biggest maker of apple iphones is under investigation in china. Taiwans hon Hai Precision will collaborate with chinese authorities on the unspecified probes. For the latest, lets bring in Stephen Engle in hong kong. They have been more developments. What do we know . Stephen we dont know the exact nature other than what we have gotten through state media. Bloomberg news has written the fact that the Chinese Government for clarification of reports from state media, but state media is saying these are potentially separate investigations from tax authorities on the affiliates of foxconn in Guangdong Province and jiangsu province but also Natural Resources official in china potentially looking at land use, whether violations are not, but foxconns land use into other provinces, aa hubei which is where junko is and is also known as iphone city. I am not connecting the dots and saying the investigation means malfeasance which means disruptions to supply chains and production but you have to wonder whether that would happen , whether this does eventually lead to some sort of action. We are getting ahead of ourselves but the market is responding. As you can see, hon hai the listed company in taiwan is down 3 . Foxconn industrial internet albany which is an a shares listed is down 10 , the most ever, a company that dont just make iphones in gadgets. This company, foxconn industrial internet makes network switches, routers, wireless devices, smart home gateways and other products much like the base where hon Hai Precision started off in taiwan many years ago with terry gou as a switch and components maker for electronics. They grew to become the biggest supplier to apple. That is why we are watching this closely, whether the company is in being being indeed investigative products problems and land use issues. Rishaad we talked earlier about it could be terry gou, the founder with political ambitions could be one of the reasons. Fundamentally, this is also further shaking Foreign Companies operating in china and not having this transparency that they wish to have in their dealings with beijing. Stephen exactly, and other media have reported other arrests in china of western executives over the weekend. We have not corroborated that necessarily get we will be looking into that. Yes, it does as well shake some confidence and also again, this is speculative at best to say that china is playing an influence game ahead of the election on january 13 but terry gou, the founder of foxconn is a candidates. He resigned from his board position of foxconn and hon hai last month, and he is known as april China Business guy. He wants engagement between taiwan and china. He told me that when i met him in taiwan in august. He got blasted for those comments for being maybe appeasing the mainland authorities, communist party in the like. He did say when he announced his candidacy, he said i will not bow to chinas threats. Lai chingte said china should acknowledge Taiwanese Companies contribute to the mainland economy greatly. We will have to see how this one plays out, especially with the connection to apple. Rishaad Stephen Engle therefore us, chief north asia correspondent. Lets look at other stories we are following. The philippines is saying two of its vessels highlighted with chinese boats during a supply mission to the stock South China Sea outpost early sunday morning. Manila condemning the incident calling it irresponsible and illegal and saying they have some of the chinese envoy. China on the other hand, accusing the Philippine Coast guard ships of entering disputed waters and accusing them of sending illegal Building Materials to warships. Australian Prime Minister Anthony Albanese is kicking off the month of diplomatic engagements and arriving in washington on monday with a delegation of Business Leaders. He is also going to meet with president biden, and he is due to go to beijing where he will meet with the chinese president xi jinping and premier li keqiang. He is sent off to the Pacific Island forum in the cook islands before returning to the u. S. With the apec summit in san francisco. Japans Ruling Liberal Democratic Party suffered a setback after a pair of special elections on sunday according to state broadcaster nhk. The ldp lost one house seat but held onto a position in nagasaki. Recent polls showed support for kishida sunk to the lowest level in two years. India is saying it cut candidates canadas diplomatic presence in the country. Last week, canada relocated 40 Staff Members from its embassy and consulates in the country. Bilateral ties have taken a hit after Prime Minister Justin Trudeau accused the Modi Government of orchestrating the killing of a sikh activist on canadian soil. We have plenty more on the way. This is bloomberg. Haidi taking a look at the trading week. We are seeing downside across asset lessons. Interesting developments when it comes to commodities markets. Crude is the headliner. Oil declining amid the ongoing hostage talks and the u. S. And israel demanding the release of civilians held by hamas. We are seeing pullback when it comes to brent and new york traded crude. Natural gas is seeing softness there too. More ahead. This is b rishaad welcome back. Looking at chinas lunch break, day of declines taking place. At the moment we have the offshore yuan weakening further, 7. 33. Looking at the csi 300, really at one stage the lowest level since 2019. This is against the backdrop of Investor Sentiment remaining fragile at the moment, perhaps front and center. Property woes probably at the moment the big reason why we see a depressed view of these equity markets. Leading those lock losses, foxconn under a probe of tax use and land use. Last week, despite supportive measures, perhaps even with the data coming in and showing a bit of stabilization of are also there we go. As they go off for their lunch break, mckay nikkei and topix raters come back. Haidi a question, the way forward when it comes to the japan equity rally. A lot of people say this time is different and the fundamentals warrant further gains ahead but there is the policy risk, talking about that on live. The majority of the people we surveyed suggest they think the policy change from the boj, abandonment of subzero rates will come sooner than later. Nikkei 225 following the region lower. The topix, you can call that flat, two of the better performers. Dollaryen holding under the 150 level, the 150 level breached briefly. The yield gap between japan and the u. S. , weighing on the worstperforming major currency with caution we may get some intervention again. That is where it is at in terms of trading in japan. Rishaad we can look at the earnings which will be key. The busiest week for earnings in this Current Quarter in the u. S. , but perhaps not looked at it as closely as what we have seen in terms of elevated yields on the bond market and treasuries area geopolitics, playing a central role. Mary, what is the deal here . There are many different factors. I think one of the key things, the focus is on the bond market rout and what will drive it. U. S. Consumer data will not be crucial in setting the tone. The reason why we have seen this resilience in the u. S. Economy has always been based on the u. S. Consumer, so if we see some products when the u. S. Consumer, we could potentially see a reversal in the bond rout but that is where it will come from, the consumer data. Rishaad in nearly last piece you said data will have to prove u. S. Exceptionalism. What do you mean . Mary consistently we have seen the u. S. Has been strong. Take the korean data this morning, the trade data. Korean exports to the u. S. Were strong. Exports were weak at china. You see this dichotomy playing out between the u. S. Being strong and the rest of the world, especially china and europe, being on the weaker side. We have seen this consistently coming through in a lot of the data and u. S. Exceptionalism has proven to be a lot more, showing giving that sort of buffer to this bond rout as a result. Haidi you mentioned china and steep losses building on last week. What do investors need to see given there is an argument that maybe we will start to see traders play some sort of bout . Mary from a technical standpoint there is some sort of bounce that can be seen, but it comes down to, for the best return sentiment around in china, is all about the Property Market. We need a holistic solution when it comes to the Property Market to ease investor concern. We saw an exceptional injection of liquidity friday, barely budging the markets, showing this overhang from the property woes are still there. Obviously if we dont see some resolve, something from the policymakers on that end, that will continue because overall, growth in china has not been as strong as a lot of investors would have liked, or as strong as what we would like to see. Haidi mary, thank you. Lending margins in focus with asias largest banks set to report earnings. What is going on when it comes to earnings in this part of the world . What are we watching . In asia we are looking at the chinese banks which will report in the latter half of the week. Standard charter as well. We are looking out for the exposure to the property sector crisis. They arent chinese bonds but they have exposure to the chinese it economy and everything that is happening in the property sector. Apart from that, several banks, the biggest privatesector lecterns lenders, reporting earnings over the weekend. Rishaad given the focus on bank margins in this quarter, how is that panning out . For the banks that reported over the weekend with the interest margins file. A little sharper than expected. But so far the analyst view is that the magnitude of the fall, which has been sharp, was largely due to someone offs so the compression Going Forward in the next few quarters will be a lot more muted but will still go down. Rishaad tell us whats going on with treasury income. Treasury income is another thing we are watching. The largest in india and asia. Because of what happened with treasury yields that have been sharply higher in the last few months, that is expected to take a hit on treasury income banks. We saw that, the treasury income was sequentially lower and that is expected to be a point of focus when united overseas banks reports and the latter half of the week. Haidi Big Bank Earnings have been disappointing in the u. S. Do we see correlation in terms of similar things in asia . The treasury income, which i mentioned, apart from that belt management fees, that was one of the weak points when big wall street banks reported. The Japanese Bank does have a big exposure to the u. S. Markets , so that is one segment where we expect impact. Haidi the latest when it comes to big banks earnings. Of course, in case we dont have enough applied at the moment, we are waiting for the u. S. , the big u. S. Earnings to come through. We have seen some upside when it comes to tech, like netflix was positive but we will be watching other big tech giants come alphabet, microsoft, amazon is interesting. Apple is the big one and j. P. Morgan pick apple and amazon options as more attractive trades as we get into the results season. Rishaad you mentioned those markets. The busiest week for u. S. Earnings the season, investors seeing what is happening, whether there is more fuel anymore for stock investors. We have the magnificent seven, we saw those, they have been powering the s p 500 rally. Those companies are opening their books in the next few days. We look at their earnings, investors should be allowed to go them go through them with a fine tooth comb to make sure Big Tech Companies have further room to run. If so, the Broader Market will, given the narrow base in terms of how the authorities how these markets have been moving to the upside. There we go. That is a look in terms of the earnings season, the value of those Companies Reporting each week. October 23, manhattans size dwarfing the rest of the town, if you will. This is bloomberg. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. 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 rishaad there we go. Looking at a smoggy mumbai, futures on their way down as we look at india and focus on the country and the markets. Looking at nfty juris, 0. 2 down, should be getting premarket prices with regards to what is going on with india. The sensex and the nifty, the nifty falling 0. 1 in the premarket, trading 19,481. We are looking also at one headline crossing the terminal, saying mumbais air quality remains in a moderate category. No comment. Haidi those pictures yeah. Anyway, we are currently continuing to fixate on the u. S. Economy, how the fed reacts to that. An opinion columnist says the economy is seeing a period of greater uncertainty due to a lack of vision from the Federal Reserve. He spoke after jay powell cigna signaled the fed would hold rates steady. The markets are right in thinking it is the minimalist probability we get a hike in november. It is good and bad news the fed is quiet. Good because they added to the instability. I was intrigued during the event yesterday at the Economic Club of new york when the speech was released, the 10 year went down and stayed there as chairman powell was reading the speech, then when the q a started it got crazy. It went all the way up to 499 and then came down. Right now, it is hard to strike the right balance when you talk Monetary Policy. It is a good thing that they are going quiet because that is a source of instability, but fundamentally we need them to stabilize the bond market. The bond market is critical, as you know, for the housing market, the economy, all of this in the u. S. And beyond and we will not get stabilizers from the tech side. We wont get stabilizers from the economic side. We need stabilizers from the policy side. We were at 330 on a 10 year in spring of this year following the collapse of a couple big banks. We have added 170 banks since then. The question is whether that is a substitute for tightening. Have they said it could be . Or at least on the margin . They have but they dont grasp that there is a big difference between the market tightening the long and, and them acting on the front end. Look at the shape of the curve and what has happened to u. S. 10 year yields relative to germany. The differential is at 205 basis points. Almost double what it was 12 months ago. So it tightens, but it also this is what the markets are worried about, it opens a bigger scope for accidents, something breaking. Im struck by how often the phrase something breaking has been set on bloomberg tv and elsewhere. I have asked this week, do you think we realize the pain associated with the losses in the long bond . Not just from the treasury market but worldwide. We havent. It hasnt gone through the system. This morning the 30 year guild is at a level we havent seen since 1997, 5 point 51 . People are holding these instruments and some of them have to be repriced and there will be implications to repricing. So we havent. The biggest risk is that what has been relatively contained Interest Rate risk becomes credit risk and liquidity risk. That is the thing we want to avoid. The longer the instability in the bond market continues, the longer we lack anchors, the greater the probability of Interest Rate risk contaminating other risk factors, like credit and liquidity risk. Rishaad that was our opinion columnist. The open, 20 seconds ago for the cash market in india. A bit flat overall for those equities. Bank earnings, very much in focus. Looking at the banking side, coming out with numbers, 197 1. 9 seven right now. Jsw steel likewise with a slight miss. People will be looking at a holiday shortened week. Aided by these Banking Sector results. Equities are likely to be influenced not just by Quarterly Earnings but also developments in the middle east. The investment manager at all the capital joins us. Thanks for joining us. Give us your take on where we are. If you look at major benchmarks, we had records not long ago but we have been in a tight range. Will the earnings picture be crucial in that . Good morning. Thanks for having me. The earnings will probably continue to be in the 20, 22 range in terms of the nifty growth. Some of the good earnings have come through in terms of the Bank Earnings that have come over the past week. We have seen i. T. Was muted so in my opinion, earnings would be as per expectations so i dont think that will get out of this range bound mess we see in the markets. There is pressure from the u. S. Perspective, the middle east crisis putting pressure on inflation and crude. So we will be probably range bound for the next few months and maybe have an upward bias after, just before the elections in april or may. Rishaad we go to the big election next year, you did allude to the problems in the middle east. What is the deal with the High Oil Price . That must be at the moment, something we have to watch carefully given how much oil india import. Rakhi you are right. What is interesting is something the Petroleum Industry put out last week. The prices at the pump for consumers have been flat over the past two years in india versus what crude may have gone up by 20 percent over the past few years. The government has policies to contain at the consumer level, the petrol prices which would probably control a bit of the inflation impact. Last month, the ministry cut prices for lpg, or lng. Domestic gas prices were controlled from that perspective, which helped bring down inflation overall. The government through its policies, just before the elections, probably dont want petrol prices going up in the domestic market and that is something that will help them contain inflation to a certain extent in the indian market. But if crude oil reaches 100, it will be something the government will have to think about. Haidi what we know when it comes to earnings so far, you are advocating any change of strategy at this point the rebalancing . Rakhi absolutely. I think something we have over the past few months actually booked some of the prophets, we have gone a little more into cash than what we have were at about three months ago. We are taking this opportunity in the markets, especially small caps and some of the Technology Companies where the runup has been sharp, to create some of that cash in our portfolio. To take on opportunities that will come up in the next few months, due to the consolidation fees and the volatility in markets that we may see. Haidi what do you make of the earnings season so far . Have there been any surprises . Rakhi so much surprises, as be fsi is a sector that is delivering on results on the earnings side. Auto seems to be, will show decent numbers as well. What we are seeing that is becoming more difficult is, especially in medium and small cap space where earnings may not be tracking the increase in the Stock Performance we have seen sharp increase in stop Stock Performance over the past few months. That is probably a segment that will sideways correct or be a little stressed in the next few months. Large caps is one area we may look at but considering quarter three is the festive season, some of the discretionary products and Services Businesses are places we may see good earnings in quarter three. Rishaad Banking Financial Services and insurance are the big boys. Where do you find pockets of value, given the premium people have to pay to invest in indian equities . Pricetoearnings ratios are above 21 times across the board. Is there a value beneath the hood you can find . Rakhi it is becoming, you have to pay on through the whole, all businesses. It is becoming a little more difficult. It is clearly not broadbased. Stock pickers are market for sure. It is hard to find value in market like this but there are large cap businesses that have underperformed the markets over the past couple years, which are starting to look interesting. Those are spaces where we have continued to maintain higher share and wait in our portfolio and hopefully those earnings can match up to the valuations that are there for these businesses. It is a little harder for sure, but that is where one has to put their head down and continue to look through the market. Haidi rakhi, right to have you with us. More ahead. This is bloomberg. Rishaad there we go. We would normally be counting down to lunch in hong kong but there is a public holiday. We are looking at Dollar Strength across the board. The strap you have, showing the Malaysian Ringgit on 4. 77, a gain of 0. 25 for the dollar, representing a level that is to record lows especially we havent seen the ringgit at levels like this since 1971. We talked about levels not seen since the Asian Financial crisis in 1998. Looking at the yen, approaching 100 50 again, we have had that level breached a few hours ago. In italy, we have seen them testing the result not just the ministry of finance but what the bank of terms of yield curve control. Looking at other parts of the market in japan, weakness abound in, zero. 7 down for the nikkei 225 and the topix down. That is the overall global macro picture. Haidi weakness abounds, and that sums it up when it comes to the rest of these Asset Classes that we are watching. Talking about china, the onshore benchmark at 300 on the back of the four plus percent loss last week. A drop almost 1 , and we continue to see Investor Sentiment remained fragile. Property woes need a fix for confidence to return. This is bloomberg. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into car engine revs when you stream on the xfinity 10g network. engine accelerating texting clicks tires squeal glass shattering loose gravel clanking the following is a paid program. The opinions and views expressed do not reflect those of bloomberg l. P. , its affiliates or its employees