Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713 :

It is also near levels that is signaling it is in overbought territory. Overall we started with the nikkei to 25 moving upside. It has now fallen below the hang seng. Talked about shanghai comp with regards to Inflation Numbers portending good news. Pork prices responsible for a lot of gains. Something to worry about. Excessive be down to inventory and overcapacity at the same time. Does not bode well. Not painting a rosy picture for the chinese economy. Lets have a look at what else is going on. The bond future. 10year trading outlook, 1. 94 . The 10 year yield unchanged, 1. 3 . 28,sterling slightly up, 1 partially down to moodys putting its negative outlook stamp on what they perceive there. Offshore you want just a fraction below seven. Lets see what else is going on here in hong kong. David as you are pointing out, stocks are under pressure. What has happened this morning, a couple things. Police confirming they shot two protesters during rushhour traffic this morning. Demonstrators calling for a general strike. Friday, a student protester died. Prodemocracy lawmakers over the weekend were arrested as well. No end in sight. Our managing editor is here. Bring us up to speed with everything that has happened. Closely watching the condition of one of the people shop this morning believed to be in critical condition. His status is the next and that could really spark unrest today. Moree anticipating disruption throughout the day. We have seen tear gas fired at various universities throughout the city. Classes have been canceled in some areas. Lawmakers are the ones arrested for a brawl in a ledge go in may are expected to appear before a court today. A bunch of things happening right now. In hongbe a long day kong as these things play out. Rishaad the thing is there is no sign of end to this. Things are ratcheting up. At the same time the economy does too. Dan the economy is into a recession. Numbers have been terrible. Theres little sign of sustained uptick and much depends on how this play out and it is very uncertain. Signs from beijing over the weekend, the major demand of protesters being universal suffrage. They basically ruled that out. We want people loyal to beijing. At the same time every time on the streets we have seen protests start to lose steam, Something Like this morning will happen. Someone gets shot in that wraps things up again. We see violent days, emotions running high. And that cycle has been repeating for months now. Rishaad dan, thank you. Lets bring in our guest. Global strategist at j. P. Morgan. Course is the prism of an investor how are you looking at this . Patrick obviously we are cautious about the situation. Said, previous speaker the economy is under a lot of pressure. When you look at hong kong assets you have to take into thirds, it hsi, two is more mainland related than hong kong related. So you have to be careful thinking about that. But i would say it is not an area where we would be looking to make huge allocate a huge amount of risk. David equities have rallied quite steeply these last five weeks or so. Obviously the consequence of that is bond yields have got up as well. Gone up as well. Have we seen a bottom . Patrik we think it probably has a little more to run. As you may remember we have been quite cautious partly because of this asymmetry. If things go wrong there is a long way down. But as we are looking at it we are seeing the data bottoming. If you look at pmis, manufacturing, there are early signs that things are Getting Better and it does look like trade talks between the u. S. And china, that the phase i deal has more momentum behind it. We have been disappointed before, so we have to be careful. We would not jump in with both feet, but we think it is enough to get a little bit more positive on risk so we are getting more constructive. It could run a bit more. Rishaad and the rhetoric has changed a little bit, not as bullish as last week already. The positive talks we had for the last six weeks perhaps is something which engendered positivity and allows us green chutes. Patrik and we have seen these cycles before, absolutely. But that is the difference. We are seeing negotiations for a second. We are starting to see the early signs. But by the time the data gives you an all clear signal markets will have moved on even further. So you have to be quite nubile to look at it. Marketdo you think the is correct in pricing out moving . An easing bias but a full cut is priced out. Patrik the economy still doesnt look too bad. Could we get more cuts . Yes. Get thembly we would because Economic News has been bad. I think in terms of the midcycle cuts, we are probably done. 10 goingwe see u. S. Above a meaningful way does that change outlook . Then there is always the rearview mirror. Perhaps bottoming out. Enter the rate easing cycle. Patrik our view is much above 2 we would actually find u. S. Trade in particular quite interesting. Rishaad interesting . We will probably think it is attractively priced at that level. We do not see it going much higher. Maybe a little more but that is quite a limited upside. David anything in this current earnings season that tells you deals are patrik i would not link it up that way. Hink earnings season people get really excited, but doing what it always does. It seems to me the low point of the cycle, and things should slowly get better from here. Forecasts are too aggressive, but that is always the case. Rishaad ok. We do. Ee how going to get you now up to speed with the Ratings Agency looking at europes second largest economy. May well take a knife to the rating. Here is su keenan. Su this is part of the fallout from the u. K. s brexit drama. Moodys has cut the u. K. s sovereign Credit Rating to a negative outlook siding weaker ability to set policy due to the brexit uncertainty. The agency notes increasing and there shall, as well as increasing inertia. Parties promise higher government spending. The president has resigned after the army calls on him to go amid a wave of protests. Morales had agreed to call a new election after the organization of american states said the vote last month was marred by severe irregularities. He had already served three terms as president and has claimed a fourth victory in the election that is now viewed as tainted. The latest damage reports from that powerful cyclone that hit bangladesh and northeastern india has killed at least 14 people. Hundreds of thousands of people have been moved to safety as the cyclone crosses the coastline. The storm has sustained winds of up to 120 Kilometers Per Hour and it is expected to drive a sea surge of two meters above normal tide levels. It is weakening as a moves inland. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan. This is bloomberg. David still ahead here on Bloomberg Markets asia, we are live at the Singapore Festival with a special lineup of guests. Do not miss our interviews coming up later. Rishaad plus, going to talk with twitters mya. This is bloomberg. Is bloomberg. Patrik is still with us from j. P. Morgan asset management. The firm released its 2020 longterm Capital Market assumptions report. Tell us about it. Patrik this is actually the single biggest suggestion we do. 9000 people hours go into it. It is a once a year longrun strategic outlook on returns. These are the numbers that we use to build our clients portfolio. It is a big report we put out. Still a world for us. We need to take a macro view. It is still a world we are focused on. Most of our downgrades come from emerging markets. Demographics are challenging everywhere. Low inflation all around the world. Unfortunately that means, especially given where bond yields are today, we think they will remain even lower for even longer. A lot of challenges for investors pull thinking about the longterm but basically you need to take more risk. Better than safe haven assets. How would you think about that . In the long run you would need to take more risk. You need to be more nimble. You need to think about different assets defined safe haven. Rishaad this is the point. He talked low inflationary environment. One where youre going to have demographic challenges. What are the assets that are going to perform better. Im talking about things as well as property here. And alternatives. Patrik thanks for that. We talk about that a lot in the report. Alternatives are the answer. A part of the answer in many ways. Especially when you are starting to talk about safe havens. Bonds are not going to do it. Rethink real estate could be more interesting or things like infrastructure. Things that given income stream on things claims on real assets. People are scarred by the last cycle and we think the future will probably not be as bad. Rishaad its value essentially is what youre looking at in some respects . Patrik again, we do not freeze it in that way. But it gives it that. Traditional value will need high Interest Rates which we are not thinking. We are thinking stuff that can take the place of value, not the traditional value. David assumptions on the dollar . Patrik the dollar, we think the dollar is overvalued. We forecast a lot of different currencies. 16 different currencies around the world. Itthere is one simple story is the dollar is overvalued and it is going to have to come down. If you took it naively, it is rbc complicated, but we think the and it is obviously complicated, but we think the dollar will go down. Rishaad 15 down and 15 years is what you are saying . Patrik Something Like that. Rishaad Something Like that come ok. That, ok. Like patrik the real changes the move and bond yields. The u. S. Tenyear treasury was probably. 3. And we have normalization. Things are back to the way they should be. But the u. S. Clearly diverged from the rest of the world. That was not the case. Still have negative yields. We thought that was sustained but clearly not. We are back to where we were two years ago. That is the big change. And returns as a result and fixed income is very low. Oneaad your conviction, asset class you are convinced by. Patrik i think what you need to alternative whole spectrum that includes private equity, where you get exposure to all of the exciting tech stories because they are much more available in private equity, but also other off screens. We were able to count real estate and that, infrastructure. Enough, compared to fixed income, even plain old equities do not look so bad. They look bad relative to their own history, but compared to saved assets they dont look so bad. Rishaad thank you. David we are talking saudi aramco. Could be the worlds biggest ipo. We will go over some key items. That is next. This is bloomberg. Rishaad you are back with bloomberg macro its markets. E laund he went from hulking peanuts to having a huge fortune. [indiscernible] david problems are piling up. First a series of tweets that went viral, alleging gender discrimination and how algorithms he said he was given 20 times the amount he received. Steve wozniak says he can borrow 10 times as much as his wife, even though they share a bank. Other lenders treat them equally. Rishaad tencent aiming to make more console games for the u. S. Through its partnership with nintendo. Games and blizzard. Also aiming to step up its dominance of the chinese gaming market, and attempting to appeal to younger female players. Damage500 points is the in the hang seng index. In case you missed it, two protesters were shot, onw is in critical condition. Can we please have a look at that . 2 down on the hang seng index. Rishaad essentially what we are seeing is volatility spiking up. Ashares adding some support if anything. Lets have a look at some movers as we head to the tokyo lunch break. Companies making waves. Toshiba,look at according one, the Company Makes a net loss and that is because of the weak performance of its lng business. Looking at honda here, 20 billion yen. Better than anticipated. Weare having a look, there go. Utting itse ct forecast, down 1. 74 . Beat net figure. It wasnt exactly that optimistic about the future. Quickly, it index has been overheated, even more so today. Highestsi, back to the level since 2017. Inis looking quite hot here tokyo. Lets have a look at what is happening now. Alibaba, enjoying a scorching start, more than 16 billion in the first 90 minutes. I am sure that number is changing as we speak. Lets bring in tim. You see singles day is holding alibaba back. Why do you say that . Tim it has been a great run for them. Now the 11th year. It was just a marketing gimmick all those years ago. They did not invent singles day. Singles day dates back to the 1990s. They just turned it into a great marketing event. But alibaba wants to move beyond that. They said a few years ago you should not focus on gmb. The company under the new management, they want to move beyond simple ecommerce. They want to move into Services Like clout, digital entertainment, all sorts of other things they are doing. If they keep focusing on singles day, which is just about one big meaningless number, i think it will keep distracting them from what they want to be in the future. If they keep holding off that relic of the past, which did work for them for a long time, it will stop them from focusing and reengineering with the Company Wants to be for the next 10 years. That is what i am saying. Rishaad singles day doesnt really fit into things like cloud, etc. So what does alibaba want to be in the future . Thetell me another thing, enormous numbers involved, they did not seem to translate into the companys bottom line. So tell us about that in less than a minute. Tim you are right. I have done analysis on track growth merchandise value, which is just a turnover number. I have tracked that through how it relates to national through actual revenue. There is zero correlation. So it is a meeting meaningless number. If they want to get into cloud it is actually unprofitable right now but it is growing. Small percentage revenue, basically single digits. But that is where they want to be. Get rid of singles day so they can focus on where they want to be in the future. That really starts now. Rishaad tim, always a pleasure. Start, but things have turned. Does this big movement down for the hang seng breaking asian equities. Nikkei down. 2 . Topics down as well, looking seriously overbought. This is bloomberg. S is bloomberg. The game doesnt end after that insane buzzer beater. Because with Nba League Pass on xfinity you can watch the out of market games you want all season long. And with the allnew xfinity sports zone, you get everything nba all in one place even notifications about your favorite teams. Watch the dropped dimes, monster blocks, and showstopping dunks. Plus get instant access to your teams with the power of your voice. Thats simple, easy, awesome. Say Nba League Pass into your voice remote to upgrade for a great low price or go online today. I am su keenan your first word headlines. We start with the latest in hong kong. Hong kong Police Confirm that officers shot two teenage protesters with live rounds this morning. This was during confrontations outside a subway station. Says extraerator mtr travel time is needed on several lines after prodemocracy advocates staged disruptions. All of this follows a 24th strict weekend of unrest with tear gas once again fired as protesters gathered in multiple districts. The Spanish Socialist Party has won the most seats in the countrys fourth election in his money years. However, results are with the Prime Minister, Pedro Sanchez, ready to form a government. His decision to call a boat call a vote to after the imprisonment of catalan protesters. A bushfire has now reached the catastrophic level. Three people were killed and more than 150 homes destroyed over the weekend as fires burned through areas rendered exceptionally dry after a twoyear drought. Eased some of the media pressure but the situation is expected to worsen as the weather turns drier this week. And finally, the Christmas Shopping experience may be more expensive this year or at least at highend shopping venues. The London Department store visits tos limiting its Christmas Grotto to customers that have spent the equivalent of 2500 this holiday season. And families get 10 minutes with santa. Leastexpecting to make at 100,000 in its Christmas Grotto in the runup to christmas. Global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan and this is bloomberg. Us have a look at oil because apparently we have a demand for the blacks duff peaking in the next two decades. This is the forecast included in the prospectus from aramco. Previouslyials dismissed the threat of such a thing happening. Anna let us bring in our energy editor, aaron clark. You have to look wonder if aramco was not going public if they would have to flag the risk. What does the forecast tell us about this forward thinking . Are seeing a shift in the companys public thinking. For a long time, they have dismissed these ideas of Peak Oil Demand at least in the short term. In february, there was a meeting of the saudi aramco ceo and he based in logic and a lot of hype. It shows a shift in the public thinking of the company. They are concerned about risk factors and this is one of them. In an ihs report cited in the prospectus, they saw oil demand peaking around 2035. Like you said, within the next two decades. Saudi aramco also revealing key risks including terrorism to Climate Change. Sinking to be kitchen everything. Ofon there were a bunch things included in the prospectus in terms of risks but the mostighted two of important ones. Terrorism and we sow the impact of that earlier this year. September 14, saudi aramco had several the silla these struck i missiles which curved their output, 10 of the worlds by half. Oil prices rose in reaction to that. Saudi aramco was able to prepare repair those facilities within a few weeks but that is an ongoing risk. Another factor that they highlighted is concerns over Inflation Numbers<\/a> portending good news. Pork prices responsible for a lot of gains. Something to worry about. Excessive be down to inventory and overcapacity at the same time. Does not bode well. Not painting a rosy picture for the chinese economy. Lets have a look at what else is going on. The bond future. 10year trading outlook, 1. 94 . The 10 year yield unchanged, 1. 3 . 28,sterling slightly up, 1 partially down to moodys putting its negative outlook stamp on what they perceive there. Offshore you want just a fraction below seven. Lets see what else is going on here in hong kong. David as you are pointing out, stocks are under pressure. What has happened this morning, a couple things. Police confirming they shot two protesters during rushhour traffic this morning. Demonstrators calling for a general strike. Friday, a student protester died. Prodemocracy lawmakers over the weekend were arrested as well. No end in sight. Our managing editor is here. Bring us up to speed with everything that has happened. Closely watching the condition of one of the people shop this morning believed to be in critical condition. His status is the next and that could really spark unrest today. Moree anticipating disruption throughout the day. We have seen tear gas fired at various universities throughout the city. Classes have been canceled in some areas. Lawmakers are the ones arrested for a brawl in a ledge go in may are expected to appear before a court today. A bunch of things happening right now. In hongbe a long day kong as these things play out. Rishaad the thing is there is no sign of end to this. Things are ratcheting up. At the same time the economy does too. Dan the economy is into a recession. Numbers have been terrible. Theres little sign of sustained uptick and much depends on how this play out and it is very uncertain. Signs from beijing over the weekend, the major demand of protesters being universal suffrage. They basically ruled that out. We want people loyal to beijing. At the same time every time on the streets we have seen protests start to lose steam, Something Like<\/a> this morning will happen. Someone gets shot in that wraps things up again. We see violent days, emotions running high. And that cycle has been repeating for months now. Rishaad dan, thank you. Lets bring in our guest. Global strategist at j. P. Morgan. Course is the prism of an investor how are you looking at this . Patrick obviously we are cautious about the situation. Said, previous speaker the economy is under a lot of pressure. When you look at hong kong assets you have to take into thirds, it hsi, two is more mainland related than hong kong related. So you have to be careful thinking about that. But i would say it is not an area where we would be looking to make huge allocate a huge amount of risk. David equities have rallied quite steeply these last five weeks or so. Obviously the consequence of that is bond yields have got up as well. Gone up as well. Have we seen a bottom . Patrik we think it probably has a little more to run. As you may remember we have been quite cautious partly because of this asymmetry. If things go wrong there is a long way down. But as we are looking at it we are seeing the data bottoming. If you look at pmis, manufacturing, there are early signs that things are Getting Better<\/a> and it does look like trade talks between the u. S. And china, that the phase i deal has more momentum behind it. We have been disappointed before, so we have to be careful. We would not jump in with both feet, but we think it is enough to get a little bit more positive on risk so we are getting more constructive. It could run a bit more. Rishaad and the rhetoric has changed a little bit, not as bullish as last week already. The positive talks we had for the last six weeks perhaps is something which engendered positivity and allows us green chutes. Patrik and we have seen these cycles before, absolutely. But that is the difference. We are seeing negotiations for a second. We are starting to see the early signs. But by the time the data gives you an all clear signal markets will have moved on even further. So you have to be quite nubile to look at it. Marketdo you think the is correct in pricing out moving . An easing bias but a full cut is priced out. Patrik the economy still doesnt look too bad. Could we get more cuts . Yes. Get thembly we would because Economic News<\/a> has been bad. I think in terms of the midcycle cuts, we are probably done. 10 goingwe see u. S. Above a meaningful way does that change outlook . Then there is always the rearview mirror. Perhaps bottoming out. Enter the rate easing cycle. Patrik our view is much above 2 we would actually find u. S. Trade in particular quite interesting. Rishaad interesting . We will probably think it is attractively priced at that level. We do not see it going much higher. Maybe a little more but that is quite a limited upside. David anything in this current earnings season that tells you deals are patrik i would not link it up that way. Hink earnings season people get really excited, but doing what it always does. It seems to me the low point of the cycle, and things should slowly get better from here. Forecasts are too aggressive, but that is always the case. Rishaad ok. We do. Ee how going to get you now up to speed with the Ratings Agency<\/a> looking at europes second largest economy. May well take a knife to the rating. Here is su keenan. Su this is part of the fallout from the u. K. s brexit drama. Moodys has cut the u. K. s sovereign Credit Rating<\/a> to a negative outlook siding weaker ability to set policy due to the brexit uncertainty. The agency notes increasing and there shall, as well as increasing inertia. Parties promise higher government spending. The president has resigned after the army calls on him to go amid a wave of protests. Morales had agreed to call a new election after the organization of american states said the vote last month was marred by severe irregularities. He had already served three terms as president and has claimed a fourth victory in the election that is now viewed as tainted. The latest damage reports from that powerful cyclone that hit bangladesh and northeastern india has killed at least 14 people. Hundreds of thousands of people have been moved to safety as the cyclone crosses the coastline. The storm has sustained winds of up to 120 Kilometers Per Hour<\/a> and it is expected to drive a sea surge of two meters above normal tide levels. It is weakening as a moves inland. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan. This is bloomberg. David still ahead here on Bloomberg Markets<\/a> asia, we are live at the Singapore Festival<\/a> with a special lineup of guests. Do not miss our interviews coming up later. Rishaad plus, going to talk with twitters mya. This is bloomberg. Is bloomberg. Patrik is still with us from j. P. Morgan asset management. The firm released its 2020 longterm Capital Market<\/a> assumptions report. Tell us about it. Patrik this is actually the single biggest suggestion we do. 9000 people hours go into it. It is a once a year longrun strategic outlook on returns. These are the numbers that we use to build our clients portfolio. It is a big report we put out. Still a world for us. We need to take a macro view. It is still a world we are focused on. Most of our downgrades come from emerging markets. Demographics are challenging everywhere. Low inflation all around the world. Unfortunately that means, especially given where bond yields are today, we think they will remain even lower for even longer. A lot of challenges for investors pull thinking about the longterm but basically you need to take more risk. Better than safe haven assets. How would you think about that . In the long run you would need to take more risk. You need to be more nimble. You need to think about different assets defined safe haven. Rishaad this is the point. He talked low inflationary environment. One where youre going to have demographic challenges. What are the assets that are going to perform better. Im talking about things as well as property here. And alternatives. Patrik thanks for that. We talk about that a lot in the report. Alternatives are the answer. A part of the answer in many ways. Especially when you are starting to talk about safe havens. Bonds are not going to do it. Rethink real estate could be more interesting or things like infrastructure. Things that given income stream on things claims on real assets. People are scarred by the last cycle and we think the future will probably not be as bad. Rishaad its value essentially is what youre looking at in some respects . Patrik again, we do not freeze it in that way. But it gives it that. Traditional value will need high Interest Rates<\/a> which we are not thinking. We are thinking stuff that can take the place of value, not the traditional value. David assumptions on the dollar . Patrik the dollar, we think the dollar is overvalued. We forecast a lot of different currencies. 16 different currencies around the world. Itthere is one simple story is the dollar is overvalued and it is going to have to come down. If you took it naively, it is rbc complicated, but we think the and it is obviously complicated, but we think the dollar will go down. Rishaad 15 down and 15 years is what you are saying . Patrik Something Like<\/a> that. Rishaad Something Like<\/a> that come ok. That, ok. Like patrik the real changes the move and bond yields. The u. S. Tenyear treasury was probably. 3. And we have normalization. Things are back to the way they should be. But the u. S. Clearly diverged from the rest of the world. That was not the case. Still have negative yields. We thought that was sustained but clearly not. We are back to where we were two years ago. That is the big change. And returns as a result and fixed income is very low. Oneaad your conviction, asset class you are convinced by. Patrik i think what you need to alternative whole spectrum that includes private equity, where you get exposure to all of the exciting tech stories because they are much more available in private equity, but also other off screens. We were able to count real estate and that, infrastructure. Enough, compared to fixed income, even plain old equities do not look so bad. They look bad relative to their own history, but compared to saved assets they dont look so bad. Rishaad thank you. David we are talking saudi aramco. Could be the worlds biggest ipo. We will go over some key items. That is next. This is bloomberg. Rishaad you are back with bloomberg macro its markets. E laund he went from hulking peanuts to having a huge fortune. [indiscernible] david problems are piling up. First a series of tweets that went viral, alleging gender discrimination and how algorithms he said he was given 20 times the amount he received. Steve wozniak says he can borrow 10 times as much as his wife, even though they share a bank. Other lenders treat them equally. Rishaad tencent aiming to make more console games for the u. S. Through its partnership with nintendo. Games and blizzard. Also aiming to step up its dominance of the chinese gaming market, and attempting to appeal to younger female players. Damage500 points is the in the hang seng index. In case you missed it, two protesters were shot, onw is in critical condition. Can we please have a look at that . 2 down on the hang seng index. Rishaad essentially what we are seeing is volatility spiking up. Ashares adding some support if anything. Lets have a look at some movers as we head to the tokyo lunch break. Companies making waves. Toshiba,look at according one, the Company Makes<\/a> a net loss and that is because of the weak performance of its lng business. Looking at honda here, 20 billion yen. Better than anticipated. Weare having a look, there go. Utting itse ct forecast, down 1. 74 . Beat net figure. It wasnt exactly that optimistic about the future. Quickly, it index has been overheated, even more so today. Highestsi, back to the level since 2017. Inis looking quite hot here tokyo. Lets have a look at what is happening now. Alibaba, enjoying a scorching start, more than 16 billion in the first 90 minutes. I am sure that number is changing as we speak. Lets bring in tim. You see singles day is holding alibaba back. Why do you say that . Tim it has been a great run for them. Now the 11th year. It was just a marketing gimmick all those years ago. They did not invent singles day. Singles day dates back to the 1990s. They just turned it into a great marketing event. But alibaba wants to move beyond that. They said a few years ago you should not focus on gmb. The company under the new management, they want to move beyond simple ecommerce. They want to move into Services Like<\/a> clout, digital entertainment, all sorts of other things they are doing. If they keep focusing on singles day, which is just about one big meaningless number, i think it will keep distracting them from what they want to be in the future. If they keep holding off that relic of the past, which did work for them for a long time, it will stop them from focusing and reengineering with the Company Wants<\/a> to be for the next 10 years. That is what i am saying. Rishaad singles day doesnt really fit into things like cloud, etc. So what does alibaba want to be in the future . Thetell me another thing, enormous numbers involved, they did not seem to translate into the companys bottom line. So tell us about that in less than a minute. Tim you are right. I have done analysis on track growth merchandise value, which is just a turnover number. I have tracked that through how it relates to national through actual revenue. There is zero correlation. So it is a meeting meaningless number. If they want to get into cloud it is actually unprofitable right now but it is growing. Small percentage revenue, basically single digits. But that is where they want to be. Get rid of singles day so they can focus on where they want to be in the future. That really starts now. Rishaad tim, always a pleasure. Start, but things have turned. Does this big movement down for the hang seng breaking asian equities. Nikkei down. 2 . Topics down as well, looking seriously overbought. This is bloomberg. S is bloomberg. The game doesnt end after that insane buzzer beater. Because with Nba League Pass<\/a> on xfinity you can watch the out of market games you want all season long. And with the allnew xfinity sports zone, you get everything nba all in one place even notifications about your favorite teams. Watch the dropped dimes, monster blocks, and showstopping dunks. Plus get instant access to your teams with the power of your voice. Thats simple, easy, awesome. Say Nba League Pass<\/a> into your voice remote to upgrade for a great low price or go online today. I am su keenan your first word headlines. We start with the latest in hong kong. Hong kong Police Confirm<\/a> that officers shot two teenage protesters with live rounds this morning. This was during confrontations outside a subway station. Says extraerator mtr travel time is needed on several lines after prodemocracy advocates staged disruptions. All of this follows a 24th strict weekend of unrest with tear gas once again fired as protesters gathered in multiple districts. The Spanish Socialist Party<\/a> has won the most seats in the countrys fourth election in his money years. However, results are with the Prime Minister<\/a>, Pedro Sanchez<\/a>, ready to form a government. His decision to call a boat call a vote to after the imprisonment of catalan protesters. A bushfire has now reached the catastrophic level. Three people were killed and more than 150 homes destroyed over the weekend as fires burned through areas rendered exceptionally dry after a twoyear drought. Eased some of the media pressure but the situation is expected to worsen as the weather turns drier this week. And finally, the Christmas Shopping<\/a> experience may be more expensive this year or at least at highend shopping venues. The London Department<\/a> store visits tos limiting its Christmas Grotto<\/a> to customers that have spent the equivalent of 2500 this holiday season. And families get 10 minutes with santa. Leastexpecting to make at 100,000 in its Christmas Grotto<\/a> in the runup to christmas. Global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan and this is bloomberg. Us have a look at oil because apparently we have a demand for the blacks duff peaking in the next two decades. This is the forecast included in the prospectus from aramco. Previouslyials dismissed the threat of such a thing happening. Anna let us bring in our energy editor, aaron clark. You have to look wonder if aramco was not going public if they would have to flag the risk. What does the forecast tell us about this forward thinking . Are seeing a shift in the companys public thinking. For a long time, they have dismissed these ideas of Peak Oil Demand<\/a> at least in the short term. In february, there was a meeting of the saudi aramco ceo and he based in logic and a lot of hype. It shows a shift in the public thinking of the company. They are concerned about risk factors and this is one of them. In an ihs report cited in the prospectus, they saw oil demand peaking around 2035. Like you said, within the next two decades. Saudi aramco also revealing key risks including terrorism to Climate Change<\/a>. Sinking to be kitchen everything. Ofon there were a bunch things included in the prospectus in terms of risks but the mostighted two of important ones. Terrorism and we sow the impact of that earlier this year. September 14, saudi aramco had several the silla these struck i missiles which curved their output, 10 of the worlds by half. Oil prices rose in reaction to that. Saudi aramco was able to prepare repair those facilities within a few weeks but that is an ongoing risk. Another factor that they highlighted is concerns over Climate Change<\/a>. There is a growing concern among investors as well and that could that is demand and something that saudi aramco highlighted. And those concerns also could expose them to greater risk for litigation. Those are two of the things they highlighted that are risks for their Public Company<\/a> Going Forward<\/a>. Rishaad thank you very much. The aramco idea is a hot topic at the petroleum and Exhibition Conference<\/a> that will get underway on monday. We speak to the largest oil return a oil refinery in india. We ask how significant this will be for the oil industry. We are extremely comfortable. They well have this ipo and that tol provide them and ability invest heavily in india. From that point of view, i am looking at this very positively. You to would it take for take a portion of aramco stock . Would you . Been aominately we had major investor in the country. We had and overseas presence also. Fory, we have massive plans our country itself. Going ahead aggressively in the gas business. To a certain extent, other manufacturing as well. Manus what about your stake in aramco directly . Other commitments are considerable. Manus in terms of the global oil industry, how important is this ipo . It is extremely important because number one, it provides a lot of confidence to others. They are large stakeholders. It also gives more freedom to they aramco which as explained earlier, will provide them with more flexibility. I find it all extremely positive. How important is it for india as a nation that the trade disputes between the u. S. And china come to a substantive conclusion . India,ink not only for india is also part of the globe. We have seen the global slowdown. No country can remain in isolation from the global slowdown. These are two large economies and the trade war has impacted them. Has this stopped you from making any major decision . Until you see the lay of the land . Not exactly. In fact, i would say not only the trade wars, some other have seenthat we recently including the saudi attack, the aramco attack you situations see such and there are positive signals also. Despite of such an incident, the markets are also growing. Market production, the did not panic. This shows the tremendous maturity in the market today. The Indian Oil Chairman<\/a> talking to our manus cranny. Anna a damage report in hong kong down 600 points for the hang seng index. Everything is down. Rishaad the best performer is still down 0. 5 . Nna bp pharma we will get you a more comprehensive market update. Rishaad heading to singapore for the festival there. Hari sacca is going to join us. This is bloomberg. David we are counting down to indiaen of the session in which is over an hour away. Good morning. Good morning, david. Starting off with the benchmarks. We are expecting more weakness. That is largely indicated by the futures which are trending in the red for now. There have been some weakness since last friday which came in largely because of a poor set of earnings. That would likely drive markets as well. Foreign investors have continued in equities over the past few days which is a trend that will stay for now. Check. Bankers are in today, we are watching for nestle india. The earnings are coming in in line. According to consensus. ,here is high input cost however. If we leave that aside, we are keeping an eye on earnings from some of these commodity names and that should perhaps set the course. Not long ago, there ,as a warning nestle india one of the largest consumers there. How is the stock looking . Nestle india has been one of the strongest stocks in the sector. Nestle has come and delivered earnings which were much better than many expected and that is largely because of launches. There has been pressure across and that is because of the increased input costs. But strength coming in for domestic markets. And nestle india is going against the trend we have been seeing as far as Consumer Staples<\/a> are concerned. David thank you, good stuff. Opening there in mumbai in about an hour. Rishaad let us take a look at mastercard. They are pursuing a program called fintech express. David let us discuss that and other endeavors of mastercard. Joins us now from singapore and the Fintech Festival<\/a>. Why dont we start their. Tell us about that endeavor. Ari good morning and thank you for having me on the show. We are delighted to be here at the singapore Fintech Festival<\/a>. We made the announcement of our fintech express platform and what we are really trying to do here is under this platform we are expanding our reach of fintech collaboration and partnership and accelerating the way mastercard works with fintechs across the region and making the whole process of on be in a fintech to seamless manner. An Global Platform<\/a> is enabler. Whether it be a Traditional Bank<\/a> or institution or other fintechs coming down the pike in our rapidly changing world. Rishaad can you tell us more specifically, can you give us some tangible examples . If you really look at where our traditional Business Model<\/a> have been where we were on boarding banks and institutions, the fintech express is targeting fintech players with rules, technology, capability, platforms, the licensing process and all of that is being streamlined so we are enabling many of these services in a fraction of the time than what we would have traditionally taken with many of our traditional customers. It is speed and acceleration and making sure the that as the world continues to move faster, we are keeping pace with many of those changes and are working in provide many of our services. David last week i was moderating a panel at the Hong Kong Fintech<\/a> festival. I asked them this question that i would like to ask you as well. The need for efficiency and to get money where it needs to be quickly has always existed. My question is, why are you pushing this now . Is it because the technology exists or because your competitors are doing it . Ari it is a bit of both. Technology is changing at a rapid pace and we are bringing new capabilities. If you look at how we are partnering in the Digital World<\/a> and the enablement of services to mobile devices the 50 your plastic that we have carried in our wallet. We are taking that capability into the virtual world. There are a number of devices whether they be mobile or wearable. That is the journey we are on. As we do that, we recognize that there are many new players in the ecosystem that can enable this. It was critical that we be willing partners to all of these new entrance that are enabling partners from many of these institutions using the services. The fintech express is just another step in that direction where we are using technology and its changes and making changes internally to what mastercard does and delivering a more compelling proposition. Rishaad does your future include blockchain and ai as well . What youey figure in are doing in terms of your offering to these partnerships . I think mastercard has pushed back from that too. Ari that is correct. If you consider blockchain as a technology, we are partnered with a number of players on a variety of fronts. We are looking at proof of provenance, need to make payments. Wasthe pullback on libra determined by the fact that we are a regulatory agency. We are working with markets that are supervised. We have been clear from day one that our partnership with libra was recognizing those obligations and recognizing that we have commitments across our regulatory frameworks. And staying true to that. That this would allow us the opportunity to shape some of those conversations. We stepped back because we felt some of the basic core tenets were not being adhered to and that was one of our reasons for pulling back. David let us take a further im sure the conversations there at the festival will be all about change. Try and project 10 years i had for us. What part of your business will become redundant and obsolete in 10 years time . Difficult to say what will become obsolete. Are we nimble enough to recognize the changes. Are we moving swiftly enough to adapt to the market environment . The testament over the last 10 years is we have done that really well. What will the future look like in the coming 10 years . Fivee excited about what five g technology will do to come activity. The implications of that across devices and the world of iot asch is really fascinating we embed a lot of our existing technologies that have been developed in the last two years and embed ourselves in the future of commerce. We have made significant strides recognizing the world is moving to be more connected and many of those investments including ai will have very significant implications as we move toward an even faster connected world and an even more connected world in the years ahead. Much, arihank you so from thatining Us Singapore Fintech<\/a> festival. We have an independent panel of Safety Experts<\/a> saying they decided that boeings redesign for the software is safe. Has presented a preliminary report agreeing that the changes to the flawed flight altitude sensor are compliant with regulations but said more needs to be done before the max can fly again. Imports will be held below 300 million tons. Shipmentg the pace of could tail off in the final two months. Putting a cap on expectations for subsequent years. Thea tries to regulate amount of imports. Rishaad staying with that industry bhp saying they added Significant Growth<\/a>. The company says the oil division has achieved average growth. Gap of 50 Million Barrels<\/a> a day with a possible steep price correction in the middle of the next decade. David still ahead, we discuss joins us livee from the singapore Fintech Festival<\/a> later today. Bottle of the a charts on the way next. This is bloomberg. Rishaad it is time now for the battle, the battle of the charts. The charts will be connected on your bloomberg in a moment. We kick things off with kk. It is down but my chart rishaad you have already negated your charge. The kospi. It is up about 12 . It still has a long way to go. The white line is the time when taiwanese e maker. It is through the roof. The price has bottomed out. It turned around its earnings. This was with revenue guidance. It was much stronger than expected. Is the variation and it is rising. Earnings are in a slump but they were operating at a profit in the last quarter. The forecast is that it will rebound in 2020. [indiscernible] gregor. How japan has been at the center of the current market zeitgeist. In the top panel, you have five weeks of consecutive games for the nikkei and the topix. On the bottom coming you can see how that tallies up with the shift in the quantitative strategy. In early september, you solve valley value shares vastly outperform market shares. Prospects for the global economy. They are looking a bit better and people are starting to place bets on a six of on a cyclical recovery. Exporters are largely tied to the global cycle but the about has been trading at 1415 compared to 17. It has been cheap compared to the u. S. Sobe not so much anymore whether that valuation appeal will be there rishaad that is a tough one. David both are very good. This it is not clear if they are correcting cyclicals. Correct,sumption is samsung should not be trading like a tidys like a chinese bank. Xm one db unit. That is what we have at the moment. This is bloomberg. Rishaad almost 11 00 here in hong kong. Rishaad salaam. A look at our top stories. Hong kong stocks falling the most in four months after police twoch shoot protesters with live rounds. Rising food costs leaving. Hinese leaders with a headache leaving new doubts about a trade deal. And alibaba a scorching start. Forworld though is looking bargains. This is Bloomberg Markets<\/a>. Onhaad let us get a check what is going on. In this partding of the world. This is a variety of hong kong exchanges. Msci come up your plate, hong kong stocks down even more. 600 18 points lost for the hang seng. Down 2. 2 . Hang seng approaching a critical point. Signalslso looking at this market is overbought. Shale has sparked 13. 4 . Let us look at the overall markets. Cking in on what is how to what is happening elsewhere. The nikkei on its lunch break. Ofsie markets hang seng the Inflation Numbers<\/a> we had over the weekend. Prices are down once more. Pork prices were responsible for the spike and consumer prices. Away from the start of the trading day in india. Futures pointing to a low start to the session there in mumbai. Per dollar. A little depreciation there. Maybe only 0. 5 in the last three days. Adding six basis points. We are yielding 6. 55 . Let us move to new york to have a look at some of the first word news headlines. Su we start with saudi aramcos ipo which is set to launch next week. In its recently filed prospectus shows there is a risk Global Oil Demand<\/a> may peak in the next two decades leveling off around 2035. The oil giant will allow investors to bid for share starting next sunday however, it has not yet revealed the size of the date it aims to sell or pricing range. It is not clear what valuation riyadh expects. International analysts faulted the original target. Spains socialists have one thing the greatest number of seats in the for the election in as many years. But the results are so fragmented that the party leader, Pedro Sanchez<\/a> will struggle even more than before to form a government. With almost all of the votes counted, the socialists fared worse than in april. It was meant to strengthen his standing buttons dead, the main Opposition Peoples Party<\/a> jumped in support and the nationalist have more than doubled their representation in parliament. There has been more fallout meanwhile in the u. K. From the brexit drama. Moodys has cut the u. K. Sovereign Credit Rating<\/a> to a negative outlook citing a weaker ability to set policy due to the uncertainty surrounding brexit. The decision comes at the start of an Election Campaign<\/a> and the agency notes increasing inertia and paralysis and parliament. The two leading Political Parties<\/a> are appealing before next months election and both are promising higher government spending. And a judge in malaysia has begun delivering a ruling on whether the prosecution has made its case against former prime 1mdb scandal. E he denies any wrongdoing and the judge will rolled whether the charges will be struck out or whether the situation will proceed. There is a question whether he was part of a premeditated breach of trust which solve billions of dollars plundered from the company. Global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan and this is bloomberg. Rishaad a rapid rise in food costs count combined with tumbling factory prices putting chinese leaders in a difficult situation. Tom mackenzie joins us now from beijing with more. This is a bit of a conundrum. It is a dilemma. Those Inflation Numbers<\/a> you could argue, cpi perhaps are somewhat disrupted by what is going on with pork. Tom yes, absolutely. You will lose it to this at the top there is a potential now for the chinese leaders to be straitjacketed by the divergence in consumer prices. Driven by the uptick in terms of part prices. 100 surge in pork prices cpi, 3. 8 . In terms of how that compares to ppi, there in lies the divergence. In october, Producer Prices<\/a> dropped 1. 6 with a fourth straight month it dropped. There is a concern about what that does to company profit. Broader Economic Growth<\/a> picture for china. Bloomberg intelligence says maybe the Producer Prices<\/a> will being lower will be more in focus. Ways the pboc and others towards potentially more of an easing buys more of an easing bias. The cpi number, a headline number but strip away the is still and core cpi around 1. 5 reinforcing the argument that in terms of what the pboc does next will be driven by the Producer Prices<\/a> and the need to support that sector which is facing additional pressure. Rishaad Donald Trumps<\/a> adjusting that he may not be willing to roll back on the tariffs after all. That will not be taken well in beijing, will it . Tom it will add to the confusion and uncertainty regarding the trade talks. We had hoped to get some clarity last week. Both sides seeking to dovetail in terms of their commentary. Citing progress but over the weekend, the president came out and said the reports to which wextent are willing to roll back the tariffs are not correct. Kudlow saying we are likely to get a deal and if we do, the u. S. Is likely to make concessions. This is not the first time that donald trump has muddied the waters concerning trade negotiations and it likely will not be the last. But it is adding uncertainty and insecurity to the situation. Nonetheless. Sides sayless, both they are heading toward a deal. Tom, good stuff and thank you. Let us look at what is going on in hong kong. 600 plus fall back. Have citywide efforts to reduce the work week. The political unrest is worsening. We have more on what is happening so far. The latest is there are calls for a flash mob in central. To try to paralyze the city. That seems to be getting traction on the protester forums where they decide a lot of their actions. That is the next thing we expect. We are also seeing protesters take to the subway station where the shots took place and there has been vandalism there. A lot of companies are considering whether to keep employees downtown this afternoon or send them home. Rishaad some shops have are ready shutdown before anything happens. It is one of those days in hong kong. Kind of like what we saw when was put insk ban place. There is sure to be anger. There is a video circulating online showing the protesters shot at pointblank range during the commute this morning. We are watching for updates. He is in critical condition. That will be one of the crucial next steps in this. Rishaad looking at the hang seng, down over 600 points right now. Has done market fantastically well in august and those gains are being erased. Is this impacting the economic state of the territory . Hong kong is figuring out how to deal with this with the last five months. Retail is down and visitors are not coming. Adjusting to the new normal. Every time we start to see it , we see wane something that in flames the protesters further. Rishaad thank you so much. Uswill be giving updates to throughout the day. More news coming out of guadeloupe. The former Prime Minister<\/a> is going to have to proceed with the case against him on this b unit. 1md he has to come up with a defense on this of abuse of power charges he has been facing. Najib held an interest beyond public office. Washis role in this unit pervasive and him. As. We will have an update on this story and the market action. This is bloomberg. Rishaad your back with Bloomberg Markets<\/a>. Sustainability has been a fastgrowing conversation theme. There have been 170 million tweets about the environment and climate. Let us discuss this and a variety of other issues with maya hari. You are there at the fintech conference in singapore how does twitter this into that re . Les ear whole sphe maya it is an exciting festival at the moment with a convergence with the fintech conversation and climate sustainability. Both of which are incredibly important to have and to wait the pros and cons together. Oftter is here and is part the conversation. We have seen the conversation volume grow about sustainability and Climate Change<\/a> skyrocketing in the last year. 2018 whenig change in we saw a growth in the conversation. And in nine months this year we have doubled the volume of that conversation from 2018. We have seen wonderful trends emerging from it. People moving from words to actions. The conversations are coming equally from the developed market as well as the developing markets. Rishaad how does fintech sit with sustainability and this whole noise if you will surrounding sustainability and Climate Change<\/a> . Decisions we the make as far as sustainability and Climate Change<\/a> are concerned affect all consumers. If we look at trends, there are three key trends we saw emerge. Consumer thinking about an ethical life. Second, thinking about sustainable steps and staying very action oriented. And third, cooperation. This is where the business conversation and the finance conversation have to come together with the sustainability conversation and decisions have to be made holistically for the corporate world. Rishaad how does the conversation differ in the asiapacific compared to europe and the United States<\/a> with we areto the topics talking about sustainability and Climate Change<\/a> . There areink wonderful movements that start around the entire world, globally around Climate Change<\/a>. Teenagere wonderful who managed to get one in 10 tweets being about Climate Change<\/a>. And the impact she has had globally has very much seen and asians well. Swell. N movements have been expressed here very much. If you look at the markets among the top markets, along with germany and sweden, you see equally thailand and fiji being part of this conversation. It is a global conversation. Rishaad how does it drive your business . Passionatebecoming about something, that can only be good for twitter, surely . Maya twitter is a platform. We are about showing people what is happening in the world around them. From a consumer story, this is top of mind relevance for millennials. But we also find is cooperation corporations understand that put her users, one out of two to better user cares about the him cares about the environment a lot. As they market themselves on twitter, the conversation is becoming inclusive about sustainability and Climate Change<\/a>. I want to get to the business itself. Is theument fastestgrowing part of the twitter ecosystem. Tell us about the revenue and how much revenue you are able to glean from this part of the world. It is a challenge, is it not . Maya the monetization around twitter is strong in asia. We have seen multiple engines of growth here. We have seen markets like china and Southeast Asia<\/a> all important engines of that growth. To beo see india continue a growing market for us. We are possibly doing partnerships there. We want to continue and extend our footprint in india. Broadly, a strong engine of growth our strategy is working. Percentagewisee how much are your revenues rising here . Up oure dont break Revenue Growth<\/a> percentages by market but i can tell you that video has driven Significant Growth<\/a> in the region. One championship here in Southeast Asia<\/a> has been a partner. We stream video events across the asian region. They continue to be a great partner from our standpoint. A lot of larger growth and strength here in asia. Rishaad i guess you look at daily active users how are you doing with that . Maya the use story has been strong internationally. Growth,ook at our user we have had strong growth year on year. Across markets. Has been a 17 year on year growth. We saw growth across all top 10 markets. It has been a strong growth story. A lot of it is driven by on conservation that we are doing. We Just Launched<\/a> a product around giving users an ability to follow traffic. And we continue to focus on sports and news. Including Climate Change<\/a> as a topic we can follow. And have aank you great day and a super festival. Maya hari at the singapore Fintech Festival<\/a>. Gupta and jessica will be with us. A lot to look forward to. This is bloomberg. Rishaad you are back to the Bloomberg Markets<\/a>. Alibaba enjoying a scorching start logging more than 16 billion worth of purchase in the first 19 minutes. Testing the 31 billion sales record set in 2018. In just over a decade, alibaba has become the Worlds Largest<\/a> shopping phenomena. It sales passing those of black in the u. S. By quite a margin. He tells us about the significance this year and what it tells about alibabas business and the health of the Chinese Consumer<\/a>. This is the 11th annual big shopping blowout and the first one since jack ma stepped down as chairman. Handed overve been to another president to oversee the event. The numbers are rolling behind me. Than 25s more billion. On pace to beat last years record of around 30 1 billion. Investors see the event as a bellwether for Consumer Sentiment<\/a> in china. We need to take these numbers with a grain of salt in that they do not directly translate into revenue or profit. The consumer in China Remains<\/a> resilient in the face of the trade war and chinas broader economic slowdown. Demand fromll great Chinese Consumer<\/a>s to purchase overseas products. Companies like apple is selling into the Chinese Consumer<\/a> market with top sales in just the first few hours. Rishaad is there any hint of a boycott of u. S. Goods . You just mentioned apple. Any boycotts of this event . Rish, it is interesting, because i had of the event there was a concern there could be some aversion from Chinese Consumer<\/a>s. In fact, a report came out saying that they had surveyed many consumers who said they were reconsidering purchasing American Products<\/a>. But we are not seeing any of that evidence in the numbers right now. The u. S. Is still one of the Top Countries<\/a> selling into the Chinese Consumer<\/a> on singles day. I mentioned apple but there are several other companies. There are 84 that have been able to sell in the first hour. Thatome of the goods Chinese Consumer<\/a>s are interested in purchasing from overseas it includes skin products and beauty products. There is still a lot of interest from Chinese Consumer<\/a>s to purchase American Products<\/a> despite these trade tensions. Theaad selina wang from wenzhou headquarters of alibaba. Looking at mehdi talks. A Pharmaceutical Company<\/a> manufacturing pharmaceutical botulinumncluding otherwise known as botox. And the stock is down about 16 the lowest intraday levels we have seen since december 2014. Chinese medical products are rolling back the status. This is all against these withines coming through the status of talks. Dy tox. Talk on highly traded the asiapacific index. It is almost 11 30 a. M. In singapore. We are in the middle of a trade day and i am live at the singapore Fintech Festival<\/a>, the largest in the world. 50,000 participants. A lot of great guests coming up g prius gupta. S go and we have jessica tan coming up. We will get her views on whether other the ipo may impact ipos. And dont forget our interview with andy maguire. About thelk to him rise of digital earnings in asia. And the issue of data localization. All of that coming up. Cheers from the Fintech Festival<\/a> in singapore. Let us get the first word headlines from su keenan in new york. Su the hong kong hospital Authorities Say<\/a> only one person was shot by police earlier today. Police had said two people had been wounded by live rounds outside a subway station. Extrail operator mtr says travel time is needed on several lines after prodemocracy activist staged disruptions. This all follows the 24th straight weekend of unrest with tear gas once again fired as protesters rather than multiple districts. Meanwhile, in bolivia, the resigned, morales, has after the army called on him to go amid a wave of street protests. Already agreed to call a new election after the organization of americans dates said last months vote was seriousy irregularities. He has already served three terms as president and had claimed a fourth victory in that election which is now seen as tainted. And for the latest on damage from the powerful cyclone that hit bangladesh and northeastern india, it has killed 14 people and hundreds of thousands of people have also been moved to safety as the cyclone has crossed the coastline. The storm has sustained winds of up to 120 Kilometers Per Hour<\/a> and is expected to drive ac surge of about two men two meters above normal tide levels. The cyclone is weakening as it moves in my. A state of emergency has been declared in australias new riskswales where bushfire have reached the catastrophic level. Three people were killed and more than 150 homes were destroyed over the weekend as renderedned in areas exceptionally dry after a twoyear drought. Cooler weather will alleviate some of the pressure but the situation is expected to worsen as the weather turns drier this week. Global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan and this is bloomberg. Rishaad a lot going on in the market. Declineseing serious especially in hong kong where we have lost about 600 stages 600 points at this stage. The hibor rate rising 68 basis points. The highest since september. On theso going weakness of through other equity markets. It is getting back into the red and increasing its move to the red. Sydney, up 0. 5 . Whether it will be the same for india when it comes online in less than 15 minutes, at the moment, we are looking at negativity there to add to what we saw on friday. Rupees. The yield on the indian tenure sovereign note. Little change there. Sovereign yields elsewhere inching up as the latest rally on bonds peters out. Let us talk about a highprofile ipo. Ipo is a topic of discussion. Manus cranny spoke to the head of indias largest refinery asking how significant the ipo will be for the oil sector. We are exceedingly comfortable. They are going ahead definitely with this ipo. And they have invested heavily in india. , we seet point of view this as a very positive move. Take forat would it you to take a portion of aramco stock . Predominantly, we have been a major investor in the country. Overseas presence elsewhere also. Whiche a massive plans includes the refinery and the petrochemical extension. Manus do you not expect to take a stake in aramco directly . There are other considerable issues. The globalerms of oil industry, how important is this ipo . It is extremely important because it provides a lot of confidence. Stakeholders in the business. It also gives more freedom to will providewhich them more flexibility. I find it extremely positive. Manus how important is it for india as a nation that the trade disputes between the u. S. And china come to a substantive conclusion . Indialy for india as part of the globe. No country today can remain in isolation from the global slowdown. Two large economies and the trade has impacted them and in india as well. Pulled back from any major decision until you see the lay of the land . Not exactly. Say not onlyuld the trade wars, some other incidents we have seen recently including the soviet including the saudi aramco suchk we can see situations but there are also positive signals. Incident,f such an the markets civilize very quickly. That strengthens the whole trade happening today. In spite of Large Production<\/a> the market did not panic. It shows the tremendous maturity of the market today. There you have it. Ahead, we are coming to you live from the Fintech Festival<\/a> in singapore. And we will be speaking to pure gupta. Piyush rishaad in pursuit of instant fame. We will hear exclusively from the chief executive, next. Youre watching bloomberg. Rishaad let us quickly check in on the business headlines. Problems piling up for the applecart. A series of tweets went viral alleging gender discrimination. Apple cofounder stephen ross meac says he can borrow 10 times as much as his wife on their applecart. While other lenders treat them equally. Tencent planning to make more console games. Tencent is also aiming to step up its dominance in the chinese game market and is planning romance titles to appeal to younger female players. s leader has died. Raised in Cebu Province<\/a> he went from talking peanuts to building a fortune. His Holding Company<\/a> also has interests in petrochemicals and property. Significant potential for growth in the oil division and mexico. In a filing, the company says its oil unit can achieve average annual growth of as much as 3 in the coming decade. Bhp in the middle of the next decade. Instagram users, listen up. Instagram is planning to remove are counts but some users showing some anxiety. What we are hoping to do is depressurized instagram and make it less of a competition. We are focused on young people. People will focus more on people that they care about. We have been testing it in markets around the world. The idea is if i cannot see how many likes your photo gets, that will decrease the pressure i feel regarding sharing my photo. Reduce anxietyto and social comparisons specifically with an eye towards young people. What are you seeing in the other countries where you are running these test . We are seeing where you are running these tests . We are seeing different things. Measuring how people feel is more tricky. Test has beenr running for so long. Feel that people are feeling better about instagram. We are seeing encouraging data on the numbers which is why we are rolling it out further. We are rolling it out in just a small part of the u. S. Is there another way that people might share . When you backup and think more wellbeing and safety broadly, there are three areas of work. Addressing acute issues like hate speech. To second is we are trying find issues we can lead on like bullying issues. Things that affect young people. Toalso think it is important reconsider some of the fundamentals of how instagram works. Will change how people feel about what we do as a platform. Of changes. One set but us get to let us see what we can expect from the opening mumbai session. Absolutely. This is largely a long expected lines. Weakness. Ing some the banking index is also in the red. That wasone thing standing out but it seems private sector banks are no longer giving the kind of support that it did in the last few days. Is moving largely in line with the benchmarks. Consumer staples like nestle come india britannia, how are like Consumer Staples<\/a> nestle, india britannia, how are they doing . Upgrading margins. If you leave that aside, we are looking at for example, india britannia is trending higher than expected. Thank you so much for that. Coming up, our interview with sh gupta. Dont miss that interview. This is bloomberg. Welcome back. Asias largest bank had thirdquarter profit that rose higher than analysts expected. Let us speak to the man himself. He joins me live this morning. 100 ceos inthe top the world. Always good to have you with us. Had great numbers. I am quite pleased. In some ways, we hit the ball out of the park. Had 18 growth in the bottom line on the back of 13 topline growth. I will take those numbers anytime. The question is, is that sustainable Going Forward<\/a> . Piyush it is not sustainable in the next year or so and that does not have to do with singapore but in the global Interest Rate<\/a> environment. , july, made three cuts august, and september and you figure another cut next year. Dramatic impact on the margin for the parking for the banking universe. The headwinds. Think about the singapore market, how optimistic are you that the economy will pick up . In our conversation with the managing director of nem, he said this may be over in two or three quarters. Do you share that optimism . Most people think it will pick up next year. Think the resolution of the trade were between china and the u. S. Will be helpful. Worldentally, i think the is going through a period of slowdown. I dont think we will see a massive bounce back and economic act to pretty next year and that is one headwind. On the back of that, i think most of the Banking Sector<\/a> the profitability will be somewhat impacted. I dont expect to have a down year. We will still have growth. That it will be difficult to have doubledigit growth as we have in the last few years. Which sectors are getting hit . Piyush consumer and consumption spending are holding up most economies. It is true when the u. S. As well as indonesia and china. Is are seeing a slowdown. The biggest source of slowdown is business confidence. In Business Investment<\/a> is somewhat slow. If confidence comes back and people start putting money back to work, that will be helpful. Retail sales are down. If hong kong are the protests in hong kong hitting you . Is thee positive ittory of hong kong is that has a tremendous capacity to bounce back up. You should never count out hong kong. And the business in hong kong has been quite resilient for us. This quarter was fine. If the Chinese Tourists<\/a> dont come, some sectors will be slow including retail. They have to be mindful of that hong kong wille, play a meaningful role. I want to talk about prospects for mergers and acquisitions. Dbs will take a moderate approach. What are possible plans, m a plans . P we are stil onush we are still focused management and growth. There are still opportunities. Allowed we got very [indiscernible] if we can find opportunities , of course they have to be strategically aligned to what we are trying to do. And we need to be able to squeeze the value out. To do anything that distracts us from our digital game. Is it possible . Piyush we said we would take a look at it and we are also looking at other opportunities in the region at the same time. We do look at opportunities around the region. And talking about remaining committed in Southeast Asia<\/a>, what are some of your immediate plans . Piyush the supply chain is moving out of china. We have doubled down and grown rapidly in the last year. We think there is an opportunity to scale up and grow. We have an entity in thailand. And indonesia still holds a lot of interest for us. Bankingdigital licenses. How do you see that playing out . How are you adapting to that environment . Piyush in our review, these are new licenses. The active retail banks in singapore will go from nine to 11. It is just competing with two more players. The truth is most of the notapore banks it is clear if we will do something dramatically different. Competition is something you have to look for and look at what singapore has already had a competitive market. If you have not been able to gird your loins and prepare, you will become dislocated. There couldceivable be too many players because not that long ago, even three banks and singapore were considered too many . Piyush that is true but the world is changing. What youre finding is the view of competitors is changing. That they can complete compete in the space. There are different opportunities. What is the biggest challenge faces in the next 1224 months . Tech mission, we just have to work harder to stay ahead of the game. It is fortunate that we started early and that we have been able to change from a cultural standpoint. But you cannot sit back and be complacent. You have to keep running to stay ahead. You for joining us here at the sink for Fintech Festival<\/a>. Still to come, our interview with the coo of hsbc. This is bloomberg. This is bloomberg daybreak middle east. Tensions run high and hong kong once again after police shoot two teenage protesters with live rounds. We will have the latest on the unrest. The hang seng has fallen the most in more than three months on the news. Most other asian shares are also weigh datavestors out of china and ongoing confusions over the trade talks. The aramco ipl perspective left a lot of questions and answered, but did include an assessment that Global Oil Demand<\/a> may peak within the next 20 years. That put investors off. 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