Transcripts For BLOOMBERG Bloomberg 20240703

The yen recovers against the greenback. A lot of it is the dollar story as the dollar is coming through softer today after already yesterday seeing its steepest drop since december. But we are also sing that recovery in the renminbi, offshore yen, they are moving towards the 7. 19 handle. This recovery could help take some pressure off the pboc when it fixes the yen on monday. But of course, we have been focusing on dollaryen. The recovery this week really being driven by what we got from what is seen as intervention, but also from the stop and the dollar and the moves in the past 20 hours have been fairly steady. That does not smell like intervention. Potentially, this is that extension of position trimming, especially when you consider this chart, which shows you one fraction of the fx universe. Lets put the board again. Lets take a look at what are the movers in the stock markets today. As you flagged, it is the tech sectors in focus and apple suppliers running higher. We are also sing these chinese tech names doing well. In general, sentiment seems to be continually improving. We are seeing bond fishing going on as well. Paul thanks very much. Lets get a bit more analysis on whats going on in markets. We are joined by Bloomberg China show coanchor david in glace, and neeraj seth, cio and ahead of aipac fundamental fixed income at blackrock. We are sing another strong day of gains in hong kong, especially on china make a text to close out the week. But i do feel like we have been here before. Is this going to be an enduring trend . David you know, we were counting our cleat going into this week how may times we have seen actually going into this week how may times we have seen rather significant rallies, at least five to 6 , going as much as 250 , of course to 50 come of course, amidst the broader downtrend. Weve gotten in our hearts broken five times. 30 into the rally and certainly just given on price alone, this one is a little bit more extended than the previous others. Although that being said, the reopening rally was really what top of that list. The question right now is, is this more than Short Covering . Is there something more and beyond a tactical trade thats being put in place . Who are the buyers of this rally . Is this simply just shortterm money . Markets have obviously been massively underweight this market. Its been a consistent answer. Two of those answers came about an hour or so back. Lets play it out and we will talk about it in a bit. We start to see some longer owning from their very underweight positions, you know, adding a bit of weight. I dont think they are really back to neutral, their snow still far from neutral. But that said, as you discussed earlier, we really need more evidence, we really need more data to sustained this rally, this move. Because we do know that macro was, macro property consumptions, you still have a lot of weak links that are reported in the data. We have also seen pretty good macro data coming in. First quarter gdp, obviously, betterthanexpected. Some nitpicking over the consumption number for march. But overall, the macro situation seems to have stabilized in china. I think that led to a lot of Global Investors which has been very underweight china for most of last year and this year to david what we are also seeing this time around is sort of a more supportive regulatory environment. The latest boost to these markets came this week following the meeting on tuesday, and also outlining when that third one will be, sometime in july. We have to start to ask when earnings start to pick up, because we have not really seen anything, something comparable when you look at china compared to what you are seeing, for example, in the u. S. , which is still quite favorable. Paul we cannot ignore the macro backdrop to this rally in hong kong. We have stocks continuing to rise. Thats much in defiance of this constant erosion of rate cut bets from the fed. Do you feel to some degree the earnings story has taken over from the fed as a catalyst for markets . Mary absolutely. And thats what they need to see. They need to see that fundamentals are still strong, that they can do without support from the fed. And thats what earnings are starting to prove. Earnings continue to prove that fundamentals are strong, fundamentals are resilient. And that will actually take away some of the pressure off and the angst from markets, especially if the fed continues to delay any sort of accommodation. Paul i want to bring in neeraj seth, md cio head of apac fundamental fixed income. We did not get a lot of new information the sick. Jay powell sing the central bank does remain data dependent, no surprises there. We are getting an important piece of data friday morning in the u. S. What are you anticipating around the jobs report . Do you see that potentially changing the narrative around rates . Neeraj sure. So first of all, i am not sure what new Information Market was expecting from the fed. The data, obviously, has been strong coming out of the u. S. Inflation has somewhat disappointed in terms of the path. And hence, the fed kept the narrative around the data dependency. There were a couple of important points worth highlighting. Jay powell did bring back the balance of risk of inflation and the unemployment. Now, last 24 months have been all about inflation and the focus on that. So i think theres a little bit of a shift happening. The second thing he did was a very important, which was reduce the tail risk of a hike, a hike as a next step. He pushed back on that idea of a hike as a next step, which was important for the market. It was a dovish statement but there is certainly not a lot of new information. Coming back to the job report today, its going to be an important report. The two aspects i would really focus on, average hourly earning and unemployment trade. The market is expecting 0. 3 month on month on the average hourly earning. Theres a slight risk of an upside, if there is anything. If you look at the minimum wages in california, which have taken a tick up. The overall jobs, i dont see a huge amount of dispersion from where the estimates are. Clearly, the unemployment rate, which is inspected to stay constant or stable at 3. 8 will be a focus. I think they should not be a surprising job report and i do not expect this to be a significant shift on the Market Pricing of rate cuts from todays report, unless we see a big anomaly from what expectations are. Paul now that perhaps we have outlined what we probably will see, and thats a moving target, of course, for the rest of this year, what do you think will be the winning fixedincome strategies . Case in point, as you know, treasuries have not really done well in the last 12 months or so. Whats the best bet at this point looking at your universe . Neeraj frontend carry, take a little more credit risk, step out on the credit card. Stay with quality. You should still focus on carry. I think the data dependency and the potential for the rate cut is between 0 and 2 now. I would still not take a lot of Duration Risk in the u. S. In addition to obviously the fed cut discussion, theres also the fiscal financing, which has been a topic the markets will get more focused on. As we get closer to the end of the year, the u. S. Elections will come into play. I do believe fixed income is still a great place to be but in u. S. , you want to take a lot of the frontend carry and then you take your Duration Risk in other markets where you do expect the rate cuts to come sometime in the summer. Paul mary, let me bring you back in as well. Lets pivot to these chinese equity markets. We are getting more calls effectively that this market has bottomed, past tense. Ubs and goldman came out in recent weeks. The market has been massively underweight. This equity market, we are still trading cheap relative to historical norm. At what point do you think investors will start looking for fundamentals to support this view, even if things are in fact still cheap . Mary yeah, i think they are starting. Its making headway. The difference between earnings yield and where Government Bond yields are, and it actually looks like youre getting compensated for taking risk in china, especially versus other markets. Thats one aspect. The second aspect is the recent meeting from the pulitzer bureau that was targeting things like consumption, that was looking at real estate. There is noise is on the fundamental side thats moving in the right direction. You have gdps holding up relatively well. Its not great but its holding up, and thats enough i think to keep going and keep chugging along. Also, you had the stability in the pmis recently. Thats also another positive. Theres a few things brewing. We also have to remember that there is a lot of people out there who have been burned by the reopening trade and the fact that there was expectations of a really strong bull market after the reopening that never really came through. There is still a bit of hesitation to jump back in until they see consistent confirmation in the data. If youre looking at just overall fundamentals, valuations, being able to get paid for taking risk, it is slowly moving in that direction. It is just about gaining greater confidence that the policymakers will be there to support things like consumption and the property market. Paul in terms of china, is there anything in the fixed space that appeals to you . I am wondering if there are pockets of the credit market that you like as well . Especially considering the tight spreads in asia. Neeraj sure. So, in terms of the for income markets, both onshore and offshore, starting with offshore dollar credit markets, without the quality names in china, the investmentgrade credit. The spreads have tightened significantly over the last six months and you see that across the board, globally and in asia. In the onshore market, we do like duration. One thing that has been very clear in the world of dispersion in terms of the economic and the Monetary Policy cycles, china is not in sync with the u. S. , and the duration has been a positive contributor for global portfolios if you have that risk specifically hashed back to dollar. We like onshore duration. And any selloff, we would be looking to add their. Paul to follow up on that, and im not sure if you have skin in the game in the local cg market. Yields have been pushing lower almost consistently in recent months. We have started to get some pushback, if i could call it that, from authorities, effectively saying, they are telling the banks, watch what you are sitting on as far as cgbs are concerned, thinks prices might becoming slightly more divorced from the economic effectively telling markets you are probably too bearish on the outlook. Just your thoughts and what you think, just year thoughts on valuations in the cgb right now. Neeraj i would argue the valuations still look fine. When you look at the Inflation Trajectory in china, i do not think you will see a significant pick up now and the end of the year or going into next year. When you think about the real rates, they are reasonably well in positive territory. Given the Bureau Meeting and the discussion around being supportive for the economy, i do not see how that stance from a pboc Perspective Shifts in terms of the policy to be neutral to maybe some accommodative. All in all, thats a positive backdrop for the cgbs. One thing that has not happened is that is no wall in the cgbs yields in the last six months, with the exception of the last two weeks. Structurally, i would still be positive. Paul thanks very much, david ingles and mary nicola. Neeraj seth from Blackrock Singapore will be sticking around. Still ahead we will take a deep dive into the Venture Capital landscape in india. 3one4 capital is going to join us to discuss the Biggest Challenges for vc firms. Thats coming up later this hour. This is bloomberg. Paul lets take a look at currency markets at the moment. And heres a couple of hours i have not said for a while, dollar weakness. The u. S. Dollar weaker against the basket of g10 currencies at the moment, but not by much. Take a look at the yen, 153. 05 after touching 160 earlier this week. Seems the ministry of finance and bank of japan did get a little bit of bang for their buck. We are still keeping an eye on that pair as we are in a long weekend in japan and we all know what that means. Lets take a look at the yuan as well, the offshore yuan strengthening as well a little bit against the greenback. Weve seen a bit of relative strength for the yuan. The aussie dollar shown a little bit of strength. Lets get back to neeraj seth, cio and head of apac fundamental fixed income at blackrock, still with us. It is a Public Holiday in japan. History suggests that this is when the ministry of finance and bank of japan like to do their thing in terms of intervention. And weve got the u. S. Jobs report coming in a few hours as well. Is the time ripe to have another run at defending the yen . Neeraj i think it is certainly something that was in the discussions for the last at least few weeks as the yen was weakening. There is clearly the intervention, obviously, from the ministrys standpoint to actually stabilize. Taking a step back, if i look back last couple of years, we have the intervention back in september and october of 2022. One thing that fundamentally one needs to think about, the intervention can slow down the direction of travel or temporarily change the direction of travel, but longerterm, that will come back unless there is a shift in policy. I think thats where the markets will start focusing on Going Forward because this will not change the direction permanently. Paul yeah, and its a very important point that you make, especially as we get that jobs data. Do you think there is a risk we could retest those 160 levels . Neeraj not in the immediate term. As the currency pair vol has gone up as well as the risk of intervention, Market Participants will need to pair down positions. If you take a three to six month of you, can we retest 160 . I do believe we can if there is no real shift from a policy stance, which is higher for, longer in the u. S. And slower normalization in case of bank of japan, keeping the real rates negative. Paul do you think a rapidly weakening yen poses risks to other asian currencies . Neeraj it, certainly to some extent, it does. Its obviously through multiple channels. One is the overall trade , number of countries which are in similar sectors. The trade competitiveness gets impacted. If you look at yenyuan cross, yenrenminbi cross, the start to become relevant. It is a more mediumterm impacted that will happen, which will put pressure on the other countries to look at the competitiveness in the current market when the Global Economy is slowing. Paul one thing that might support the yen would be the bank of japan lifting rates. I know you like the strong macro backdrop in japan. How much leeway do you feel of the moment in terms of further tightening after the incremental tightening weve had so far . Neeraj the reality is looking at the Inflation Trajectory, the boj has ample room to lift rates and actually infected do multiple hikes but so far the market expectation has been in one to two hikes, getting to a 150 basis points all your. I think the pressure will keep mounting on the yen. The key is the durability of inflation in japan. I think it is turning out to be certainly more of a fact that a concern that the boj had in the past. I do think the boj stance should steadily shift towards further normalization. Paul were just keeping an eye on cnh hibel rates f alling to the lowest rates we have since 2022. The pboc has a little bit of a problem on its hands with deflation. Do you anticipate any easing from the pboc in the near term . Or do you think it is constrained a little bit in terms of what we are seeing going on with the yuan . Neeraj i do not expect any significant easing on the rates front from a policy perspective from pboc for two reasons. One is the capital account and the Exchange Rates of dollar cny becomes an important part to focus on. The second part, which is a more domestic concern out think about, is the net interest in margin and the banking system. As you think about some of that risk in the and the challenges facing the banking system, from property market, local government funding i do think, the banks would need to keep a healthy level, which keeps a constraint on potential significant easing coming from the pboc. So more of a neutral stance. And more of tweaking the liquidity through rrrs, but less so the rate cuts. Paul all right, we will have to leave it there. But thanks so much, as always, for joining us with your insights. Neeraj seth of blackrock there. We have plenty more ahead. This is bloomberg. When you automate sales tax avalara, you dont have to worry about things like changing tax rates, exemption certificates or filing returns. AvalarAhhh Ahhh Ahhh ahhh paul lets get to some of the top geopolitics stories that we are following. The philippines has summoned chinas envoy in manila to protest the use of water, against philippine ships in the south china sea. The latest incident allegedly happened on tuesday. Manila is demanding chinese vessels leave the area of the immediately. China claims nearly the entire waterway, including that particular area, and is urging manila to stop what it calls provocation. Hamas says it is studying a temporary ceasefire plan with is in a positive spirit as International Pressure mounts to reach a deal. They plan to send a delegation to egypt as soon as possible to continue negotiations. Israel said it would only consider joining a ceasefire talks once hamas response to the latest proposal for a temporary truce and release of hostages. Turkey is holding all trade with israel over what it calls the worsening humanitarian tragedy in palestine. Israels imports from turkey reached 4. 6 billion last year and include machinery, fuel, fresh produce, and food. Israels foreign minister the post on x to call the ban the behavior of a dictator. Lets take a look at how we are tracking on markets at the moment. Another very good day for the hang seng. We got the index better by 1. 1 . The tech index in particular having a good day, up by 2. 1 . 2 paul all right, welcome back. You are watching Bloomberg Markets asia. Lets check in on the how markets are faring with avril hong in singapore. What are you watching . Avril we are watching those currency moves, paul. We are seeing that yen moving closer to that 153 handle against the greenback. Its quite a recovery after last week receiving no help at all from the boj. We saw those record short positions, those yen bears being brought back. I want to recap what we have seen this week as there is that help commenter from what is believed to be intervention on the currency but also the dollar slumping. The yen is also recouping ground. Best gain since december 2022 and a week since then versus the pound, the euro, offshore yen as well. Thats what we see in fx. Lets take a look at what we are seeing in the e. M. Space as well, because of course, the fed coming in less hawkish provided some relief to a lot of these em currencies. We are keeping an eye on on the inflation print that is due this hour. The rupee hovering near 83. 4, but rendon be had been remember the rendon be had been renimbi had been pushing towards highs. Taking a look at the korean yuan as well amid those bond as well as stock market enclosed. It is a key beneficiary this week. Lets take a look at what this is playing out for the tech space because the korean apple suppliers are also among those that are rising today. And the chinese tech names really underpinning the gains we are seeing in the hong kong stock gauges of the sentiment with chinese equities overall improves. We have the likes of bank of america saying the worst may be over for 2024 for chinese equities. Thats what we are seeing among stocks for now. Paul thanks very much. As you are speaking, we did receive thai cpi numbers for the month of april. Broadly in line with estimates. Core cpi coming in at 0. 37 , a little bit higher than the expectation for 0. 34 , but exactly what we got back in the month of march. Consumer cpi numbers, that increased 0. 19 on year, ever so slightly slower than what we are anticipating but a slight increase on what we saw in march. This was the month, april, that the government ended its one part per liter subsidy on diesel. Very little change off the back of that data right now. 36. 822 against the greenback. Apple ceo tim cook says he maintains a great view of china in the longterm. Speaking with investors after apples latest sales beat, he says the firm has worked to do in the country outside of the iphone sector. Bloomberg Technology Reporter mark gurman has more details. Mark apple reported better than anticipated q2 Earnings Results with the iphone declining about 5 billion on an annual basis, in addition to the same for overall revenue, within the device actually growing in mainland china, according to ceo tim cook. The ipad also declined, but that was to be expected, given that the device have not been updated since the end of 2022, and that new versions of the ipad pro and ipad air are coming next week. Services and the mac bright spots on apples earnings report, bringing in growth to the iphone maker compared to the year ago quarter. One a negative was the wearables home and accessory calgary, which fell about 800 million. The companys cfo said this was due to a tough compare from a year ago when the Apple Watch Ultra and the secondgeneration airpods pro saw strong sales in the Second Quarter of last year. Analysts and apple executives were all very clearly excited about the prospect of apple moving into generative ai. Apple plans to announce a slew of new ai futures at its Developers Conference on june 10. Paul Bloomberg Intelligence thinks apple a Greater China revenue declined 8 versus the 11 expected may point to some stabilization in sales. Senior analyst robert lee is with us now. Robert, is this the end of apples trouble in china or are they just not quite as bad as we thought they were going to be . Robert i think first of all, the reaction post results is a classic case of, you know, expectations probably being too low, which is something we have not releasing in the crazy world of tech recently with sky high valuations and High Expectations in the market. The best way to look at the results as they were slightly less worse than feared and the guidance was a little bit ahead. To answer your question, i would say the challenges that apple faces, particularly in china, will continue to dominate the story in the coming quarters and internet year. I would say they are probably more likely to be structural in nature rather than cyclical. The key challenge for apple, aside from obviously the challenges in china i just mentioned, are, you know, where are new products coming from . The companys plan catchup in ai so they are a bit behind the curve on that as well. Paul lets get back to that ai question in a moment. But in terms of the results, how did apple surprise the market . Robert again, i think the market expectation was set pretty low. Theres been a lot of headlines since the beginning of the year about iphone shipments being very weak in china. The numbers were less worse than feared. They were not strong numbers in any way. Their china iphone revenues were down 8 yearoveryear. But the market expectation was 11 . It was not quite as bad as expected but i do not think tim cook or others would say a business declining 8 in a year is something to sing and dance about. The apple china issues will continue to dominate the story i think in the coming quarters, unfortunately for apple. Paul well, historically, we have found out that apple is not necessarily always the first to market. But when it does come to market with a product, the market typically likes it. Is that going to be the same story when it is trying to catch up on ai . Well i think theres been robert well, i think theres been a lot of criticism on apple of being late to come to the table. In the long run, that possibly could be to their advantage. If you compare and contrast with other big tech platforms, they are spending tens of billions of dollars in capex at the moment to build out the infrastructure. That is something apple does not have to do. And if they can partner with someone like perhaps openai or alphabet and google and license in that technology, to be that is a more costeffective way to tapping into the, you know, the longer term opportunity in the ai market. And also, you know, we are early stage in the ai story still. Monetization is only just beginning to come through to these big tech platforms. The fact that they are a little bit late to the table is not necessarily a bad thing. Theres not a huge amount of revenue to be had out there at the moment. It is a story that we develop in the coming quarters and will obviously make the headlines at this event they are planning in june, i think june 11 is their next major announcement on the product side so we will have to wait and see what they say there. Paul Bloomberg Intelligence Senior Analyst robert lea there, thanks for joining us. Here are some of the corporate stories we are following. Huawei is secretly funding kind doing Edge Research at u. S. Universities through an independent foundation washington. This is despite a web of restrictions over National Security concerns. The sources tell bloomberg the company is the sole funder of a Research Competition administered by the optica foundation. The competition has awarded millions of dollars since its inception in 2022. Sony and apollo are said to have made a 26 billion bid for media giant paramount global. Sources say the offer is a nonbinding expression of interest and will be an all cash offer for paramount shares, plus the assumption of debt. Paramount has also been winning a merger proposal from the head of sky dance media. All right, still to come, 3one4 capital is going to join us to discuss vc Investment Opportunities in india. Hear which sectors they are favoring, up next. This is bloomberg. Paul welcome back to Bloomberg Markets asia. You are watching the india focus. We are staying india but zooming in on the Venture Capital space. Our next guest invest in Companies Operating in sas, consumer internet, fintech, and digital health. To discuss Investment Opportunities, we have Nruthya Madappa, partner from 3one4 capital. I want to start off by discussing the broad landscape for Venture Capital funds. Do you see these as being challenging times for investing and returns . Nruthya has2023 2023 has actually seen a massive decline in the growth rounds in india. That being said, there are plenty of opportunities across sectors, within dear street sectors with Industry Sectors stepping up. We still see over 8000 deals a year across sectors and that is still a very vibrant, you know, perspective there. We have seen valuations get lower, which makes dealmaking easier. There is a better sort of deal to be made today. Founders are a little bit more realistic about that so thats also quite positive. A lot of investors, domestic funds in particular, have been raising their funds over the last year. While its been trying times to raise funds, weve seen renewed interest globally in the indian markets, we are seeing newer enter the markets and came to take positions in vc. The exit landscape still has a way to go. The second half of this year, which is one of the key ipo windows in the past decade, will be very critical in sort of really establishing india as a reliable tech ecosystem for exits in particular. In the meantime, over the last year, we have seen several secondary focused exits with, you know, investors exiting in followon rounds or two other investors, and sometimes at very steep discounts on their holdings to ensure exits for their lp thats broadlys. How the market looks. Paul do you feel the appetite for risk capital in the startups has tapered off in the last few years from the early days of tiger global, they were pumping a lot of money into the sector . When do you expect to see some more Global Investors in india . Nruthya it definitely has. Weve seen the global investing base over the last two years shift towards the middle east and southeast asia. The money from the u. S. , i think the crossover funds, have actually declined over 90 after investing from 2021 to say 2023. We see early signs of them returning to the markets. We see a broad global interest as well in the early stages preipos. In the early stages, still remains a stronghold of the global offshoots in india. Thats how we see this. We see it returning. Its a very optimistic outlook for 2024, particularly anchored on the fact that we are expecting quite a great exit outcome through the ipos, we see them returning. Paul do you see a lot of competition as well from large private equity funds . Are they also getting into investing in some of the smaller names . Nruthya that had happened i think around 2022, 2023, particularly 21 as well. A lot of the larger funds were moving a little bit earlier stage because the valuations that grow stages were becoming untenable, in their words. Over the last two years, they retreated to what they do really well, which is midmarket and growth. The deals are there to be had, are at the right prices, really fantastic companies are available so theyve sort of retreated toward the mid and growth stages. A lot of earlystage funds in india have raised much larger funds than may be the indian market at the earlier stages could sort of absorb and have essentially taking on dual strategies. They are moving further upstream, funding more midmarket companies as well. Thats the kind of shift over the last two years. Its been interesting. Paul can you tell us about some of the sectors that youre expanding your investments this year and looking into next . Nruthya yes, we have also been very deep investors in our five Main Technology sectors. One is consumer technologies and brands. We see disruptive Consumption Patterns across the country emerging, tier ii, which is rural india and middle india consumption as well, which we are doubling down on. We are deep in software, both in crossborder sas, and enterprise automation, which is Building Software for india, which is not just sas typically. We are looking at health and sustainability very closely, looking at very resilient models there. Weve also been very deep in fintech and Financial Services always. We are looking at interesting trends in crossborder payments, trade, etc. , and have also taken bets from that in our most recent fund. Paul ive got to ask you about the role of ai and all of this at the moment. How do you see those being used in the businesses youre talking about, in sas, fintech, and consumer . Nruthya absolutely. I think ai has completely disrupted, especially the Software Enterprise lets keep. Large enterprises have an edge in developing inhouse solutions or scaling them across their client bases faster than may startups can. In india we very cautiously tracking all of these sectors, the impact of ai on every one of these sectors. Whats important and where the caution come from is to see how resilient some of their differentiation is especially as these models progress and accelerate at the kind of pace that we see today. With every new version of gpt, like do we see, like startups essentially, what they are building become inconsequential . Thats what we are watching, cautious, very very optimistic, but still a little cautious about the applications. Paul all right, Nruthya Madappa , partner at 3one4 capital, thank you so much for joining us. Lets take a look at one of the biggest names in Indian Business at the moment, adani. We have heard that adani has been getting questions from the indian regulator. It has been served two show calls and notices from the securities and Exchange Board of india, also known as sebi, this is about allegations of noncompliance of roles on stock traded listings, validity of author certificates in the past. Adani not really suffering too much as a result of that. We have seen flagship profit drop as well. Lets get a little bit more detail on that earnings miss from adani with our reporter in mumbai. When you run your eye across the bottom line, what stood out . At this time, Adani Enterprise is the flagship firm of billionaire adani, which has reported a 38 drop in profit due to a onetime charge taken by one of its units, Mumbai International airport, on past expenses during the covid19 period. That had invoked. In this quarter, it has said that it will pay for a part of these dues and that as has amounted to about 6. 2 7 billion rupees and that has net to a drop in the quarterly profit. Otherwise, the revenue has gone up by 0. 8 . And noticeably, its airport unit, the airport business has done exceptionally well, gone up by 27 . Paul mentioned a moment ago those questions that adani has had from the securities and Exchange Board of india. One more detail can you give us about that . Right. So, in the Quarterly Earnings filing, Adani Enterprises also said it has received two show cause notices by the indian market regulators. These notices were on noncompliance of roles on Stock Exchange listing on related Party Transactions and have asked the company to defend itself against these allegations. Some other Group Companies such as adani total gas, adani power, adani ports have also received such notices. These notices have only asked the companies to defend them subs against the allegations and do not imply any further action. These are part of a Supreme Court led investigation after a u. S. Short seller, hindenburg research, had made allegations of corporate fraud back in january of 2023. The Group Companies have said that they do not see any Material Impact of these notices. Nonetheless, the auditors for some of these firms, noticeably Adani Enterprises, have said, have implied that this might affect Financial Statements in the future. These notices, as well as the onetime charge taken by the company, shall the complex show the complex environment the conglomerate still operates in, even as it expands and invests almost 100 billion in its green expansion. Paul all right. Our reporter in mumbai there. Just get you across the bloomberg terminal. We are seeing shares in Bajaj Finance jumping after regulators lifted curbs there. The rb the banking regulatori ordered them to stop sanctioning and dispersion of loans for two of its products with immediate effect. Letter dated may 2, 2024. Thanks to remedial actions taken by bajaj, those restrictions have now been lifted on ecomm and online digital. Bajaj surging off the back of that news. South africans gearing up for landmark elections at the end of this month. Find out why the outcome could test Nelson Mandelas legacy. That story up next. This is bloomberg. Paul south africans are preparing to vote at the end of the month in an election that could see the ruling anc lose its majority for the first time. We have more on president Cyril Ramaphosas battle for another term. On the day antiapartheid hero Nelson Mandela was freed from 27 years of prison, he was the man at his side. Cyril ramaphosa was a future Nobel Peace Prize winners favorite to succeed him as president of south africa and the ruling party. But this was not to be Cyril Ramaphosas moment in the political spotlight as he was overlooked by the enc. Instead, he became a businessman, acquiring business stakes in nearly every key sector of the countrys economy. As a result, he became one of the countrys wealthiest individuals. Yet 19 years after the anc first overlooked him, Cyril Ramaphosa returned to politics, elected president in 2018. I will be faithful to the republic of south africa. He appointed market friendly technocrats to his cabinet. The Market Reaction was euphoric. Ramaphoria had officially arrived. He promised to revitalize the economy and root out corruption. But he struggled to live up to the economic hopes and expectations placed on him in his first term. Even as he looked to carve out a role for south africa on the global stage. Unemployment sits at 32 , gdp growth hovers at 1 , and the rand has been the worst performing major currency during his time in office. The outcome of the may elections may impact Cyril Ramaphosas market friendly policies. It may equally define his legacy by way of comparison to his onetime mentor. Paul and we have indepth coverage of south africas may 29 vote. Thats coming up in about 30 minutes on our special monthly program, africa amplified. Lets take a look at how we are tracking on marcus this friday afternoon in the asiapacific on markets this friday afternoon the asiapacific. S p futures shaping up to be in positive territory. All of the futures for the u. S. Markets looking Pretty Healthy at the moment. We are counting down to the april u. S. Jobs report due on friday. In terms of what to expect, heres what Bloomberg Economics is forecasting. Nonfarm payrolls growing by 200,000 in april versus 303,000 in march, so thats a little bit lower then consensus estimate of 240,000. We dont have any trading in u. S. Treasuries at the moment with japan closed. Japan being closed, rePublic Holiday, means yup, you guessed it, we are on possible intervention watch for big yen. Thats where we will leave it for Bloomberg Markets asia. Daybreak middle east and africa is next. This is bloomberg. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. 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