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tv   Bloomberg Markets Asia  Bloomberg  June 5, 2018 9:00pm-11:00pm EDT

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rishaad: asia-pacific stocks ,ixed, the risk rally stalling traders nervous about protectionism and geopolitics. zte back in the spotlight, shares remain suspended in hong kong. newborn in china. we will be hearing from muddy waters carson block later this hour. in hong kong, i am rishaad salamat. said: standard chartered to be planning a strategy change in asia. we will examine plans for new hubs in hong kong and singapore. this is "bloomberg markets:
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asia." ♪ rishaad: a mixed bag, gdp out of australia in a short while. having a look at protectionism, geopolitical concerns. we know the time and where exactly in singapore donald trump and kim jong-un will be meeting. there we have it. that is a snapshot of the action thus far. andi: we are counting down looking at suggestions beijing an overture to buy $25 billion of american goods to narrow that trade gap between the two countries. is that enough to get trade talks on track? reports president trump is considering bilateral talks with canada and mexico instead of nafta. let's get the latest with sophie
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kamaruddin. chinah that overture from , china futures index pointing higher. gains forai composite a third straight session. overseas investors don't seem to perturbed as illustrated by the msci china index, set for a sixth quarter of gains, and it has maintained its premium of the shanghai composite. that is what this chart is showing you here. it hasn't been an easy year for offshore stocks. fallout in february with alibaba and tencent, but strategist at goldman, deutsche bank, all sticking to bullish calls. thanndex is less volatile the shanghai composite. i want to mention one company suspended from trading in hong its possible
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disposal announcement. the stock was cut to hold at cicc, this as chinese solar stocks have been pummeled, and that could trigger consolidation and asset sales. the company has slumped 13% over the past two days. rishaad: something going on at the moment, that moving average also in the frame. let's get to first word news and joined paul allen. it haswhite house says confirmed the location for next week's summit between president trump and kim jong-un at the capello hotel at 9:00 a.m. next tuesday morning. long trackas a record of hosting top-level international meetings and offers good security. meetings and offers good security. singapore posts long-standing ties with north korea. the u.s. government has asked saudi arabia and other opec producers to increase production by one million barrels a day as
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gasoline prices surge to their highest in three years. president trump has publicly complained about the opec policy that has helped to boost prices and train the glut. sources say it is unusual for washington to ask for a specific output hike. says iran has drawn up a tentative schedule for boosting production of uranium. the plan was outlined in a letter submitted monday and follows the call for iran's nuclear industry to be ready to resume work. the iaea said iran is sticking to uranium enrichment limits under the deal. the ecb is said to anticipate a pivotal discussion at next week's meeting and could produce a public announcement on when it intends to wind up qe. the governing council is likely to treat the gathering in lafayette as an opportunity to debate the in the bond buying. set to rungram is
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until september and the bank has declined to comment. 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 paul allen. this is bloomberg. haidi: facebook has disclosed data sharing partnerships with or bank chinese device makers, including while way and lenovo -- whil peter, why are people concerned about these revelations about one company in particular? facebook made these revelations as they were talking about how they shared data. in some deeplanded trouble recently because they were used data from cambridge analytic a that allowed
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interference in the 2016 presidential election. the united states government is concerned about how facebook has been sharing data with other companies, and asked about handset makers in particular. there are many outside china, but they said there are four chinese companies they have been sharing data with. the goal was to make the experience smoother with some of these handset makers. among them is while way huaweilogies -- technologies. it is not allowed to sell its equipment to american telephone operators out of concern it may help the chinese government with the data sharing. this revelation is an issue for facebook. facebook said they maintain strict controls over the data even as these chinese phone makers were using it.
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they said the data remain on the devices and was not put on servers where it could be shared. that was met with skepticism made similarook assertions around the time of the cambridge analytic of scandal, and further revelations uncovered that data was shared widely and had few controls. facebook did not know how it was being used in many cases, so we have not heard the end of that story. tohaad: peter, let's move zte. we are getting closer to a deal, but not a done deal. >> that's right. has ended up in the middle of this trade dispute between the u.s. and china. china has been trying to get some modifications in a penalty leveled earlier this year against zte. the u.s. commerce department blocked zte from buying
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components from u.s. suppliers a couple of months ago because they said it had violated sanctions against trading with iran and north korea, and then have lied about it. instead of penalizing the employees involved, they gave notices to them, so they lowered the boom and stop them from buying semiconductors they desperately need to be able to , and also products optical equipment and many other things essential to their operations. zte said they had seized major operations and closed down most of their major operations, so essentially a death blow for the company. the chinese government has been negotiating with the american government to get that lifted. now it looks like we are close to a deal. zte will probably pay a penalty of more than one the in dollars -- one billion dollars, change management, and submit to scrutiny from u.s. regulators,
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but they may continue operating, which is key for them at this point. rishaad: good stuff. just to tell you what we have battlehead, china's ipo in a new high-tech stock venue. understoodsees less opportunities in north asia, particularly south korea and japan. details on that strategy next. this is bloomberg. ♪ s is bloomberg. ♪
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>> some of the less understood opportunities are perhaps in korea and japan, among the cheapest fighting rations among the economies today, massive conglomerates and family groups. in our business, the ability to drive fundamental operational ,mprovement in these companies
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subsidiaries of a large parent company, so japan is one of our top priorities globally in terms of the buyout market. >> it is in no one's best in having an all out tde war. that would impact growth, inflation, and more importantly on market sentiment. it has not hit market sentiment in a big way, which is why you have not seen volatility spike or markets perform poorly. ,> what we are seeing in china 6%, 6.5% growth, despite the financial leveraging that has -- deleveraging that has occurred, and the tremendous growth in the consumer sector happening there, the opportunities in tech and health care, it just can't be ignored them a will see real opportunity there. some of the voices at the bloomberg invest summit. they see they biggest opportunities in japan,
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and carlyle group telling us why investors can't ignore china. george, great to see you again. you can't ignore china. that is true. but where do you go in china? that is the billion dollar question. >> it is without doubt. it is a million, billion dollar question. it is the world's second-largest economy. we all want capital markets to be open and transparent. differentppen at a pace than what the western world is used to. there are many sectors that can benefit and do, but to put the elephant in the room and acknowledged it, it's not a good start, but plenty of opportunities in the decade ahead through many other economic cycles for investors in china and broader asia. rishaad: so what is your
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strategy then with regard to china, or something which is, of anrse, thrown off china, opportunity that might benefit from china? china is still, a key investor. assetsf infrastructure and investors in the nonlisted space. so up and down the capital structure in the nonlisted space. a bigis increasingly investor from a loan in the australian economy. that is one way of playing it. a small, open economy, net wergy, food exporter, benefit from growing growth into china in those areas. from a pension perspective if you are an investor in australia , you need to find investments outside of australia outside of the china-australia dynamic, and you need dollar and euro assets
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in the portfolio. haidi: because the other side of the coin would be some sectors that would be looking to suffer purchasing power is taken away from australia and directed to the u.s., things like lng. with those be areas you are avoiding right now? -- what would those be areas you are avoiding right now? short-term play, but energy in the portfolio, but not overweight. the thing about and all straight in pension fund increasingly you need to be taking profit away from the listed equity space and need to be buying euro-u.s. dollar chinese-linked correlation, buying listed assets and effectively staying risk overweight, but acknowledging you need to lower the volatility for the next phase of the economic cycle. we've had a great run for eight
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years. it is about where do you tell from here -- you tilt from here. haidi: what is your view on the u.s. dollar? that will inform the asian and emerging-market space. we have seen a little bit of weakness, almost a breather this week. are talkinge about fundamentals haven't changed, do you see the strength continuing? >> dollar strength is interesting. it should've been weaker earlier in the year on the back of the trade war. higher u.s. rates dollar, so you have this push-pull effect, trade war back, rates higher good for the dollar. we see u.s. dollar strength continuing in the shorter term on interest rates. notwithstanding the trade war in the language at the white house on a regular basis, but stronger u.s. dollar in the shorter term can continue, but then weaker towards next year.
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therefore, achingly cold on a weaker u.s. dollar scenario come a but still looking at that persistent strength to continue. is the momentum of earnings acceleration has been so robust in north america, earnings expanding and will continue to expand in the year at, but at a slower pace than we are used to. strength in the short-term, but looking for something a little bit, the dollar index to come off in calendar 2019 and for some euro strength sustain next year. at the moment, 90 days, euro -dollar strength continues. rishaad: let's look further down the line. irony proposing oniffs on steel and aluminum your closest allies on the grounds of national security. this is something you can't ignore, especially the victims of this. our donald trump's actions adding further weight in the effort to move away from the
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dollar system and they will gather steam? , it is a pandora's box when we talk about the white house. you are trying to remove the emotive side and language. what has happened with tariffs, steel, and what's happening with the traditiotrade war, is that it is weak u.s. dollar that uncertainty, and you will look for an alternative all things being equal. the cynical ones that if you want a weaker u.s. dollar compared to the economy, but that is too simplistic. the trade wars are unpredictable, and a bigger problem 1-3 years out of the decisions now, but i don't think persistent u.s. dollar strength is what they are looking for, but that is what will eventuate. fortunately, the fed reserve is so independent and so well-drilled that a higher-interest-rate scenario
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will be the driver of maintaining u.s. dollar strength. again, the trade war in itself is a weaker u.s. dollar all things being equal, and that push-pull effect, but the reserve in the momentum of the us economy and earnings -- george, very quickly, msci asia inclusions, where are you without? are you buying into that because you are tracking it? >> yes. as the pension investor, yes, we are buying into that. increasingly important. george, always a pleasure. remember bloomberg users can interact with the charts on gtv up on key analysis and save charts for your future reference. this is bloomberg. ♪
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. this is bloomberg. ♪
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haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. the business flash headlines, rupert murdoch appears to have won approval to acquire sky. it is not a done deal. comcast has submitted a 16% higher bid. authorities want fox to divest sky news if it completes the takeover. murdoch's plans to sell sky news to disney and entertainment assets, which comcast may also try to buy. bids forbhp received its shale portfolio that would value the unit at $9 billion. the offers come from bp and chevron. shell submitted a bid with blackstone in may. bhp expecting to receive $10 billion or more as bidding for
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the division proceeds to a second round, and $13 billion if it sells the assets piecemeal. xiaomi has added six chinese banks for its hong kong listing, expected to be the world's biggest ipo in four years. will act as global coordinators. seeking $10 billion from the ipo to be hong kong's first with a weighted voting rights structure. rishaad: standard chartered may , --ooking to add to hubs two hubs, singapore and hong kong, as it looks to simplify its net work and cut costs. russell, tell us about the story. chartered isard looking at creating two hubs according to people familiar. as an emerging market bank, it
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has a huge network worldwide which can make it complicated to do business and keep costs down. would help to cut costs, simplify management, and help streamline capital and oversee assets better. in recente bank that years has had quite a few problems with bad loans in the .egion they also had problems in south korea. bill winter who spent the first three years in his oversight othe bank cleaning up a lot of those problems, is now looking at this as an opportunity to help prevent those sorts of things from happening in the future according to our reporting. how soon can we expect some sort of formalized structure for this new strategy? it is too early to say at this point.
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the reason why they are looking at singapore and hong kong, two majorthey are financial hubs in the region. singapore is already viable for standard chartered because one of its biggest investors, the singapore state investment fund, is one of their investors raced here. is based -- investors here. hong kong they expect to the 1850's, and they are listed in hong kong and it is a gateway to to expandre it seeks and get a piece of the belt and wrote an issue. it does make sense on those levels. one thing to look out for is what the regulators in those cities might think with lumping other markets under their oversight. to haveht not be keen that expanded oversight on their watch, so it will be interesting
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to see what their reaction is to this. haidi: regulatory oversight certainly something of concern. russell, thank you so much for that. counting down to the open up markets in hong kong and mainland china. rish, how are we looking? rishaad: gains premarket, , generallywing .25% to the upside. i think we have the glass half-full at the moment. let's have a look at casino stocks. a hidinganies taking lately. , bad down again, 1.25% numbers for maccallum not helping these casino stocks. cal -- for macau not helping these casino stocks. gdp in be talking about
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austlia shortly. hsbc's chief economist for asia joining us to go through those numbers. of course we have the hong kong open as well upon us. this is bloomberg. ♪
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under a minute to kong-shanghaihong -shenzhen session opens. a lot to digest. therve bank of india with decisi on eir cost o borrowing later today. te shares in focus after the nasdaq another record high supported by those mega-technology issues. plus one, with that plus one being the united states , global trade under the microscope. t minus six days before trump and kim meet in singapore.
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hotel is a capella location for those talks next tuesday at 9:00 am. the reserve bank of australia keeping interest rates on hold yesterday. it is now time for a look at the hong kong start of the session. >> here is a snapshot of hong kong stocks. hang seng adding .25%. .encent rising for a fifth day it is working with the chinese government to create an electronic system to make travel between hong kong-macau, and one chinese city easy by using we chat. shares under pressure, set for the first drop in three days. stocks, xiaomi has brought in six more banks to arrange its ipo. cc.ng the six are cicx
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sue not china gaining ground after posting a rise in may contract sales. casinook at macau operators, under pressure from disappointing revenue, continuing to fall after plunging 10%. in jim cna losing 9%ear to date. moren stanley seeing near-term volatility with the world cup and fallout from the pboc looking to crack down on shadow banking. goldman sachs says they see a buy with macau casino stocks. haidi: thank you for that. i'll strain first quarter gdp crossing the bloomberg, a beat come expanding 1% quarter on quarter, slightly above estimates of .9%. 3.1% on a yearly raises,
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estimated 2.8%, so a strong beat. fourth-quarter gdp revised from prior .9% expected when it comes to the first quarter. the household spending site being a positive contributor to that number. rishaad: looking at it in more detail, the reserve bank of australia knew the number yesterday when they decided not to do anything about interest rates. food for thought. we saw the aussie dollar and what it has been doing. >> we are seeing the aussie pop on that update. helping top report lift it. positioningaintain on top of its 50-day moving average. perhaps a move towards the
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100-day moving average. haidi: thank you for that. let's get some reaction. has more than a decade as an economist of the rba. paul, i want to throw up this chart on the bloomberg. things are pretty good. did the strength surprise you? >> it was stronger than factored in, but the broad story is we are writing a global growth wave. australia has been writing that. that.ing it is supported by a lift in business investment, a consumer looking in better shape. by neteing supported exports, which is the key link australia has with the rest of the world, so the lift and exports is supporting the growth
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story. if you say business conditions are around the highest level in a decade, commodity prices have lifted, and it is boosting national incomes, these numbers make sense, lifting global growth and supporting australia as well. is the vulnerability of the economy a deterioration in trade conditions overstated as we talk about is there a trade war or not? >> australia is tied into china in terms of its trade. on the commodity side, most exports go to china. that story,n continuing growth in china and support for demand. i think a key story for australia has been chinese supply-side policy, but cutting back on the mustard production of low grade have been lifting prices. the other aspect of this exports story for australia is not just exporting commodities, we export
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education and tourism services, and increasingly that is being driven by rising middle-class incomes in asia. it depends on what trade policy moves globally mean for the asian growth story. that is how it will translate through to australia. our broad view is that it is doing well and that will support all straight going forward. rishaad: that was the .0 is going to make. you can keep looking at the commodities aspect of the australian economy, but the services side is indeed really important come and will become more important looking ahead as it moves towards consumption and that economy. do you think there is a recognition of that? >> i think it is probably understated. i think people don't fully appreciate the australian economy is the services economy. what is driving her growth is services. services exports have become a larger share of what australia is exporting, education, tourism
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, and the tourism and education numbers are driven by asia, mostly china, but students and tourists coming to australia. the growth story is shifting been driven by rising middle-class incomes rather than investmentas cycle, so we are tying more enter structural trend, less on izedcyclical story, the f asset investment sign -- fixed asset investment cycle. rishaad: what about housing. i know sydney has been inching lower. how hard could it hit the economy? is sydney thing here house prices have come down recently and attracting a lot of 5% am an, about down but they were up 75% in the run-up, so five years where they
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rose by 75%. housesople who bought are well and truly in the money. perceptionbroad is that it's all about the house story. that is a false perception. it is not the largest part of the australian economy. the mining industry is doing better. services account for .75% of gdp for australia, the fundamental thing that is driving the overall story. haidi: one line coming through, first quarter earnings per worker up .5% on quarter, 1.6 year on year. the earnings growth piece of the puzzle or lack there of, is it isolated to australia, or is it a structural issue globally, and does the rba do anything? >> wages fundamentally will try the rba. that's why we don't think they will be doing anything for a while and why they are patient and say it will lift gradually.
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growth,l about wages and wages growth is sluggish. the national income story has improved, tax revenues rising over the budget look better last month and the government was expecting, but as of yet we have not seen that income flow through to the households in terms of higher wage growth. are structural things globally, technology and globalization are combining to make labor markets competitive, holding down wages growth, unemployment in the u.s. at an 18 year low, yet still wages growth is lifting slowly come us of that is affecting australia and one of the reasons why the rba will be on hold for a while. haidi: what about the fluctuations when it comes to the commodities part of the story? were getting closer to this opec meeting. exnot sure if there is an strategy. -- exit how does that feed in? >> there are three groupings,
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coal, iron ore, and lng. coal and iron ore story because china has put policies in place to cut back on domestic supply, turning to international markets and buying more from australia and brazil, and that is supporting commodities prices. on the lng story, that is the benchmark to oil. most lng is sold on oil benchmark contract. if prices come down, that would weaken the lng story. australia is a not a large producer of lng itself. areas lng is one of the where you could see more weakness if you see china offering to buy 25 billion dollars worth of goods this year from the united states. what does that take away from australia? >> these are commodities. they are homogenous. -- if we are not
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selling them to one country, we will sell them to another country. chinare is a shift and buying more from the u.s., then all straight would shift what it is selling to another country that would otherwise be receiving the energy that the u.s. would export to it. the trade policies for it might not be as critical. they are homogenous. they can go to china or other markets. haidi: a more optimistic conversation than i was expecting. thank you for joining us. just to recap, three point 1% first-quarter gdp growth in australia fastest in two years, rish. let's get you to first word news with paul allen in sydney. >> facebook has confirmed it had data partnerships with chinese companies. been flagged by u.s. intelligence as a potential national security threat to the social network said it and other
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u.s. tech company's work with chinese firms to integrate services into smartphones. facebook says information from its integrations with huawei was not stored on huawei servers. tesla investors have backed the board, defeating a proposal to require an independent chairman and approving the reelection of three directors. the board had advised keeping elon musk as ceo and retaining directors. others wanted an independent chairman after claims that it missed model three targets and the board had failed to oversee elon musk. the white house says president trump is seriously considering bilateral deals with canada and mexico. larry kudlow said the president would prefer to negotiate separately despite the nafta commitment- partners to a three-way trade accord. they have agreed on nine of 30 issues under discussion.
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globalld bank is warning growth is set to slow over the next two years as central banks raise rates and fiscal stimulus starts to fade. the world economy will expand 3.1% this year, sliding to 3% in 2019. the report also says growth will slow in 2020 as the world economy approaches full out put and trade and investment growth wane. 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 paul allen. this is bloomberg. thank you. coming up, china looking at and new high-tech trading venue to lure would-be ipo's away from hong kong and the u.s.. the details just ahead. this is bloomberg. ♪ this is bloomberg. ♪
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rishaad: we are back. this is "bloomberg markets: asia."
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a look at what we have at the moment. china considering a new high-tech biotech trading venue that would rival hong kong or new york, saying it could have lower thresholds to persuade companies to list at home. our reporter is with me now. why are they considering this? another move to being a leader in a most every field? regionally there is huge competition among stock exchanges. we saw hong kong moved to attract biotech firms by adjusting listing rules, lowering requirements. china seems to be responding. officials are looking at a biotech board similar to hong kong rules. companies that don't have -- rishaad: it could be a separate index, such as the a-market in london. >> it could be a new set of
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listing rules so biotech companies could list on the board in shanghai, possibly a new board. we are not sure at the moment. the main issue is concerned that good chinese companies will go elsewhere. exchangesinland compete with those markets in hong kong and elsewhere? haidi: does this just the relationship between hong kong and mainland exchanges is more competition than collaboration? seen through the stock connect system with hong kong and mainland china a huge success that would suggest on the collaboration side, but we must not forget the shanghai exchange has spoken publicly about regrets losing companies like tencent, alibaba, and others. they want these big ipos and are
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looking for ways to compete head-to-head with hong kong. there is clearly a strong competitive edge to what is going on. haidi: is it likely to be successful, this new strategy? depends for the reasons one might want to list in china as opposed to elsewhere. it is not just going to be about venue, but currency, capital trying to raise, political considerations, so it is not clear from what little we know as to whether this will be of -- be a venue of attractive to chinese biotech's as opposed to somewhere else. haidi: thank you for that. has china tries to attract tech companies to him home, short seller carson block is warning of fraudulent chinese companies
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listing on u.s. markets. from the bloomberg invest summit he said china's private companies are not purely private and fraudulent firms pose a threat to investors. >> so in terms of the amounts of money raised that were companies that basically went to zero or close to it, the estimates are 30 billion to $40 billion, but that is companies that have washed out of the system. there are still companies listed prc, that. from the while they are not completely fake the way their predecessors risks.ave real fraud a number of them show fabricating profits, so if we look at that combined market cap , it is massive. >> frauds are not unique to china. point,there this bigger
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a bigger point about china's impact on the american capital market and the capitalist system come if you like and we want to extended a little bit more? >> sure. we should start looking at as western investors stocks,uities as sin where from a governance perspective it is something where allocator should be asking themselves whether it is something they should own. he goes beyond fraud. let's be clear. only one leg of the issues is actorsea that chinese can list companies in the u.s. that are frauds and do it with total impunity. that is one leg. another leg is that we are financing -- so, at the end of the day, and i would argue this is a fact, but at the into the day in china there is no such
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thing as a purely private private that the companies will do the bidding of the state when they are required to do so, and so we are at this very strange moment in history where as liberal democracies we are struggling to adjust to the devolution of the technological edge from the government sector to the private sector, and so our best technologies now our strategic technologies largely in the hands of private companies in the u.s. who are open to doing business with these companies from china that you don't know whether they are really acting in their own interests or in the interests of the government, and the fact is we give liquid markets to the securities of some of these companies. their ownarson block that muddy waters cofounders speaking to erik schatzker at the bloomberg invest on it --
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invest summit in your. let's see how things are going in hong kong as far as equities on the hang seng and beyond. index is at an inflection point. >> let's get into the details when it comes to the movers. in gm china under pressure along with macau casino operators. some other stock movers across the region. one in taipei climbing, set for the highest close since september 5 after a 15% rise in may sales. ae bank in tokyo falling to a january 2013 low. brokers lower as their ratings on an earnings slowdown. metcash sliding in sydney as it takes a hit after announcing an impairment charge on its supermarket assets. i want to highlight kuala lumpur , the best performer on in the
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the msci index, weighing the possibility of taking a pay-tv firm private and said to consider a buyout of $1.9 billion. earlier the stock soared 13%. the last check on china high-speed railway, which has halted trading pending an announcement. it felt 10% on tuesday ahead of that. it may have something to do with a partnership with tencent to get driverless trains on the road in china. it has been under pressure for most of the year. it has been sliding since hitting a high back in 2015. now trading at january 2015 levels. you for that. you can catch up on our interviews by using our interactive function tv and dive into any securities or bloomberg functions we talk
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about and join in on the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
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haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. a check of the business flash headlines. wants tochartered simplify its extensive network and bring costs down. it plans to consolidate 10 southeast asian countries has soon as next year. his non-china north asia interests will be kept in hong kong. the plans are not final and subject to change. koch stepping empire because of health problems. his brother charles says he is saddened and will miss david's inciting contributions. charles koch has been the
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primary leader of the koke operation inkoch terms of its conservative influence. haidi: kate spade has died at 55. she founded her brand in 1990 three with husband andy and used vibrant colors and classical silhouettes. the couple left the business for good in 2006 after liz claiborne bought it for $124 million. to coach later sold it owner tapestry. up, a chiefing economist will be along and tell us why the first round of china u.s. terror threats his small.ely too we ask what comes after that. after that later in the hour,
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looking at commodities and how to make money with commodities. on the day of mixed fortunes for equity markets. some gains creeping in. this is bloomberg. ♪ what's a gig of data?
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rishaad: the aussie dollar spiking as the economy shows faster growth. helpedpansion being along with exports reviving and beating expectations. oil around $75 a barrel. --hington sales of digital tokens surpassed the recommended amount raised in the whole of last year. in hong kong, i am rishaad salamat. lun.: in sydney, i'm haidi coming up, clouds gathering over the solar industry as china tries to rein in overcapacity.
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we check in on the forecast in beijing. this is "bloomberg markets: asia." ♪ haidi: with this change in expectations for the rba, we had ozzie first quarter gdp really coming through that sense of resiliency, the headwinds we cap talking about. also seeing household spending and retail sales and business sentiment holding up. also, the reaction in the bond market as well. most crucially, after 20 months of the rba sitting on their hands, the expectation going into next year that they may finally be able to hike. rishaad: looking at the central regard, but also the reserve bank of india later on as well.
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looking also ahead to the g7. will there be any accommodation of the u.s., or will it be a split of the d6 plus one? let's have a look at the markets. here is sophie kamaruddin. reporter: asian stocks are looking mixed. at the start of the session in jakarta. elsewhere into tokyo, we are seeing fluctuation in a narrow range for japanese stocks. have south korea off-line for a holiday today. checking in on australian assets, asx 200 up 4/10 of a percent. highlight the canadian dollar moving in the asian thaton on an adp report, steve mnuchin is attempting to
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get trump to provide canada with an extension -- exemption of the steel and aluminum tariffs. haidi: thank you so much for that. let's get to the first word news with paul allen. paul: thank you. the white house has concerns over a location for next week's summit. it will be in singapore on an island, starting at 9:00 a.m. next tuesday. it has a long track record of hosting top-level international meetings. offer group security. singapore as well also has been long-standing ties with north korea. with thes working chinese government on a smooth travel between hong kong, macau, and the guangdong province.
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says the e-card id system i one day allow users to book hotels and set up bank accounts, if beijing approves the idea. higher afterpliers zte is closer to a deal to allow resume buying from american companies. the commerce department, however, says no definitive agreement has been signed. the chinese company has replaced top executives and president trump said last week -- month it could resume business if it paid a $1.3 billion fine. chinese state media says permission has been given for their first private high-speed rail project. eastern province has approved a 227 kilometer route. global news 24 hours a day on
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air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. the big one today is the reserve bank of india, whether they will be moving on the cost of borrowing. this is a question that they are trying to answer as they wrap up a three-day policy meeting. kathleen hays is here with a look at what to expect from the reserve bank and what we might hear from the european central bank when it meets next week. is there really a chance the r.b.i. will hike its rate now? reporter: it certainly says there is. to hike or not to hike, that is definitely the question. surveyed 43 economists by bloomberg do not expect them to move, but that leaves 13 who say they will hike the rate at the conclusion of their three-day meeting today. here is a bloomberg chart to look at which shows us what they
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are looking at. the white line shows repo rate at 6% for nearly a year. the yellow line, look how oil prices are moving up. that's why inflation of blue line is up to 4.6%. now that's above the 4% target rate for the r.b.i. guyhead of the r.b.i., the who just td the fed, slow down on that tapering or you are going to hurt emerging markets, he holds the wildcard on this decision. the deputy governor has signaled he will vote for removing accommodation. rates.ans hiking but you look at the weakening rupee, rising oil, rate hikes, all of that would argue for the rate hike. indian gdp growing in the fiscal year. that is strong. there are some external factors. the foreign-exchange intervention, drying up the liquidity, the reserves, cash
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squeeze, but no matter what they willhe r.b.i., the policy be closely watched when they come out of that meeting. haidi: the ecb also meeting last -- next week. i we really expecting that, given that we just stepped past the volatility of italy and spain? reporter: that seems like a key question. what our bloomberg news team exclusively learned is that may hold a pivotal discussion that will end with a public announcement of a natural date to begin -- an actual date to begin ending the bond purchases. mario draghi will wait until july, and at the june meeting, he will simply say that they will make the announcement at the next meeting. one of the reasons to move this up to next week, italy is still boiling, but it seems to be a little bit more on the back rising.and inflation is let's look at another chart from the bloomberg library. you can see the white line for
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inflation. the other two are spain and germany. they are at or above 2%, b the key number for the ecb is 1.9%. the oil price could be another reason to slow down, but they hit the target. can the ecb ignore trade tensions with the u.s.? can they ignore the signs of slowdown in the economy? we shall see. one risk of waiting till july does have to do with italy. a new government may already then be firmly into its program it wants to follow, cutting taxes, looping government spending. it will be in conflict with all the eu budget rules. another reason why the ecb might want to act on that announcement before all of that gets started. much forank you so that. kathleen hays, bloomberg global economics and policy editor. we still have ahead this hour, oil continuing to pull higher on
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forecasts of shrinking u.s. stockpiles. we speak about the r.b.i. decision. we speak to matthew from janus henderson about where he sees crude prices heading. rishaad: and the strength of the daughter -- dollar. higher oil prices, simmering trade tensions. what could be the biggest risk to global growth. ♪
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haidi: this is "bloomberg markets: asia." i'm haidi lun in sydney. asian markets trading pretty mixed. assets. rally in mixed a little bit of a breeze on lingering trade in geopolitical tensions. the dollar is paring some gains. the gains we have had, for seven
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straight weeks. bloomberg was told that investors should stay in the markets. >> we are recommending clients to still be in the market, because beyond profitability's, growth we see, they are still supportive of equities in general terms, but we are also very careful in the cyclicality may come in, the geopolitical risk, edging, and thinking about diversification and edging ,s a must in this environment and we should not be too complacent. your suggestion is even if we get the first round, it would not have much of an impact. but the point is, if there is a retaliation and a spiral, that is when the problems arise.
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>> on the trade site. i think we are blowing this a little out of proportion. if you think about the size of what we talk about, the global trading system is $40 trillion. on $500ve 25% tariffs billion of goods, out of a $40 trillion system, to me the threat to global trade -- what happens with retaliatory steps and the snowball effect. --i'm already number bunching up my number to $500 billion. it's obvious to everyone that retaliating with even greater force will harm domestic industry even more. i don't think anyone has incentive to do it. it is more a show of force and bullying tactics from the u.s. but make no mistake, the u.s. is winning this. the chinese have committed to
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$70 billion more u.s. goods. it is working for the u.s.. it is structural problems they have, not just about the trade deficit the u.s. has with china. there is a reason for it, ultimately. >> that stroop. the way the u.s. is portraying this is way oversimplified. the main difference between the and europe is demographic issues, faster wage growth in and you will always have a trade deficit in europe between the u.s. and europe with the economy like that. in china, there is -- value-added much is in china as opposed to in the u.s. and invented in the u.s.? >> in the u.s., there is a measurement issue. a couple weeks ago, someone added to the trade deficit the amount of products u.s. companies in china are making,
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which is about the same as the merchandise goods trade deficit. the trade numbers themselves are oversimplifying. at the end of the day, we will see a redirection of trade flows toward the u.s., and the trade deficit will be reduced in the next few years, not just for the u.s. economy. haidi: you look at the recent flurry of numbers we have had since the whole trade war threat has begun. by and large, you look at the of south the mine korea, china pmi rates are resilient as well. it is a sense of business as usual. i want to put up a chart on the latest piece of the puzzle. part of it is some of the companies are trying to front run the risk of tariffs being put in place, or do you think
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this speaks to resilience when it comes to regional trade in asia? >> i think it speaks to resilience. in australia, the numbers i think were somewhat -- they looked quite good on paper, but behind them was relatively weak domestic growth. if you have weaker domestic trade, it is easy to make numbers look better. that is happening in australia. more broadly, i think trade is diversifying away from the u.s. if it becomes more regional, particularly in asia, but also south america and europe, the impact that u.s. tariffs have on global trade overall are also diminished today compared to 20 or 25 years ago. the regional trade flows will become more important. the u.s. is trying to redirect some prospects to its own economy to reduce its trade deficit, but at the same time stimulate greater regional trade
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, which will reduce the role of the u.s. in the overall global economy. i think that's the price the a minimalying for reduction in its own trade deficit for a few years. if trade wars is not yet a tangible risk for the global economy and the cycle for growth, what is the biggest risk for you? biggest risk i would say is central-bank policy errors. it is simple. i could point to a few other global hotspots right now, but it is central-bank policy errors. at this stage in the business cycle when we are clearly in the second half of that cycle, we have to watch what central banks are doing. the federal reserve so far has raised rates in an environment where real policy rates in the u.s. have remained negative. we have not really felt the straining effect from tighter monetary policy. that will change next year.
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the key question to me is, will the fed realized that and stop or pause in the summer of 2019, or will that go through the neutral rate that is so hard to monetaryand overtaken policy and cause a potential recession by 2020? that is the key question right now, certainly in the u.s., but also globally. you want in here into the studio and said we should be learning italian. tell us why. >> that would be the second biggest risk i would have cited on the list. i am afraidbecause of a rerun of the debt crisis we saw in 2012 and 2013, the brexit, we remember that. this is not about italy leaving the euro and causing a crisis that way. but i'm concerned about is that many conventional systems we use
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are being tested. brexit was one of those. everyone thought no way they would vote for that. i think the next conventional wisdom here is, i have always assumed no government would take a country out of the euro. the ensuing economic crisis would wipe away the government immediately. in order to stay in power, you would not decide to leave the euro. that the italians are likely to stay in the euro, deny any desire to leave the euro, but introduce a parallel can currency. rishaad: they may not have a deeply given it is uncompetitive. very quickly, the treaty of rome, signifying that italy was the thirde of eur, biggest economy, but people talk of it as being on the periphery . >> it is color, but more cultural than anything else.
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you cannot have europe without greece. greece is a part of the culture of europe and italy, and an important part of the culture of europe. you cannot have a united europe without greece and italy. rishaad: ok. marcus, always a pleasure. markus schomer, pine ridge investments. you can look at the charts like the one we just had. you can use them to catch up on key analysis. that you have it. this is bloomberg. ♪
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withad: you are back bloomberg markets. i am rishaad salamat in hong kong. added to said to have its upcoming hong kong listing. it is expected to be the biggest ipo in the world for four years.
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sources telling us they include bank of china international and i.s. -- icbc, acting as global coordinators. hong kong's foes -- first with a weighted voting rights structure. haidi: bloomberg is told that china is considering a new trading venue in shanghai that could be one of the most promising companies from going public in new york. market has atic business worth more than $1 trillion overseas. rishaad: bhp is said to receive first-round bids that would value the unit up to $9 billion. bidl apparently submitted a with blackstone, said to be receiving $10 billion or more. couldalso thinking it
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raise as much as $13 billion if it sells assets piecemeal. china's the section may be ripe for mergers and acquisitions. some analysts see the industry shrinking. tracking this story in beijing, what has happened in the policy given that why now, we have talked about massive overcapacity and incentivizing insular for much of the past decade? china's solar industry has been facing a lot of overcapacity. the most recent policy change, while the scale at which it cracks down in the industry is higher than most people had expected, we had been expecting for a new -- few months that more restrictive policies would be coming down. the main thing is the big push for subsidy free solar. the government has cracked down on the amount of clutter they allocated for new build solar in years,t two or three
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that originally would have qualified for the national subsidies, and now they are moving rapidly towards projects that will be built in the future to not pay subsidies. this impacts the outlook for a new solar build that will come into the china market. we revised the forecast down by about 20 gigawatts, and we are expecting china can build anywhere between 30 and 40 gigawatts. that's a big deal, but we have to remember that even with a downwards revision, china will still be the largest solar market in the world. haidi: in terms of the impact on the chinese market and the global market, are we going to see any ramifications? beorter: we expect there to -- i think if you look at the stock markets already, there are serious implications for many of the solar companies, especially chinese solar manufacturers dominate the global supply chain. across the board, we are expecting to see downward
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revision in terms of the total solar build in china. this could potentially mean there will be cheaper equipment available in the market for other markets outside of china. in terms of how that will impact a new solar build in other markets outside of china, we are still not sure, but for the second half of the year, the expectation is there will be a possible 30% decrease to the cost of modules and equipment that goes into solar panels, because there is going to be a downward pressure across the board along the entire value chain for many solar suppliers because of this crunch in new build coming in china. rishaad: it is not just these solar companies, there is a supply chain there as well. reporter: yes. chinese solar manufacturers account for the best majority -- vast majority of the upstream supplies that go into solar installations as well. we are expecting many companies
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to experience pressure across the board, and this is being played out across the chinese and hong kong and other stock markets where the companies are listed. at the same time, while we expect this could potentially lead to long-term consolidation, in the near term, the next one, too, or three years, we expect this will separate out the company that is the strongest and has the bait -- greatest ability to survive the crunch in the market versus smaller ones. rishaad: very quickly, we will leave things there, just having a look at this chart showing what's going on with solar as well. you can keep up with these reports from new energy finance on the terminal. here.s first solar this is essentially the industry as a whole, global in the right line -- white line. it is flatlining, but being
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brought down by chinese companies that have been feeling it of late. leaving us with this image of the imperial palace in tokyo. ♪
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paul: i am paul allen with first word headlines. the white house says president tom does not plan to dump nafta, but is considering bilateral deals with canada and mexico. larry kudlow says the president would prefer to negotiate therately, despite not partners repeating their commitment to maintaining a three-way trade accord. negotiators have reached agreement on nine of 30 issues under discussion. dataook's concern that had companies in china -- while way is flagged as a potential
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national security threat. the social network says it and other companies work with chinese firms to integrate services into smartphones. facebook says integration from on theirs not stored servers. tesla investors have backed the besieged board, defeating a proposal to provide an independent chairman. the board had advised keeping elon musk as ceo and chairman, and retaining the three directors. and others wanted an independent chairman after claims the marvel three targets showed the board had failed to oversee musk. the international atomic energy agency says iran has drawn up the potential for boosting uranium feedstock. the agency says they outlined a monday.ubmitted said last month that iran is sticking to uranium enrichment limits under the 2015 deal.
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global news 24 hours a day on twitter,n tictoc on powered by more than 2700 journalists and analysts in more than 120 countries. i'm am paul allen, this is bloomberg. rishaad: marginally closing higher there. this midweek, hump day. here is sophie kamaruddin. reporter: yes, midweek, the japanese markets have been fluctuating all morning. nikkei 225 set for a third day of gains. machinery makers are under pressure. credit suisse downgrading one company to underperform. let's take a broader picture of the region. i want to highlight astro malaysia, soaring for a second day after the billionaire is said to be taking the pay-tv operator private. this comes in the wake of the
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47% this year. in hong kong, china rising 7%. analysts from morgan stanley has raised the price on the snack maker. casino operators in hong kong under pressure with mad cow dropping to an april 10 low -- macau dropping to an april 10 low. a bank set to a morery 2013 low, signaling troubles ahead for the lender. a bank employee may have been involved in falsifying information for housing loans. the mexican peso is trading near the weakest level since february 2017. this as trump seeks bilateral nafta talks.
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inflation continues to go higher above target range. the ringgit is stuck in a holding pattern. we will learn more about the governor,e malaysia who has reportedly offered to resign amid questions raised over a land sale, the proceeds of which reportedly were used to pay off debts. haidi: a great deal of uncertainty for malaysia. thank you for that. we will take a look at commodities now, in particular oil. we've got wti and the brent cap continuing to separate. at the momentflat after falling to the lowest in about a month. the u.s. asking opec to raise output by about one million barrels a day. we want to bring in our .loomberg opinion columnist you say we are setting up for an oil shock. reporter: i think you see that
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in the fact that the u.s. is asking for opec, and seeing it on the ground. look at brazil. the country was more or less brought to a halt over trucker strikes. in australia, retail at multi-year highs. in one sense, it seems crazy to be talking about an oil shock at a time when prices are down by a third from where they were four years ago. but the nature of these things is they are driven more by the pace of increase and direction rather than the levels. we could be seeing some of those starting to break out now. haidi: the challenge for that is what's going on with wti. reporter: that is an excellent point. even into the permian basin, the midland groups, we are seeing a
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bifurcation of the oil market like the early years of the shale boom. the thing that is fascinating to me, at that time, it was illegal ,o export crude from the u.s. so you have the bifurcation because only refineries could get the crude oil out of the u.s. what we are seeing is the capacity around pipelines and ports is not sufficient to bring that u.s. crude onto the market. from brent at 75 down to mid wti, it's aidland $20 spread, quite remarkable. indi: i want to bring jonathan khalil. this gap we are seeing between the crude and brent adding onto the fact that you've got reportedly the u.s. asking opec supply to- bring more
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the market, we are in unusual times. >> absolutely. you've got extreme tightness globally in markets. opec and russia have done a fantastic job of drawing down access industries and bringing the market into balance. the risk as the trajectory continues, if you get a supply shock from any region in the world, there is not enough , or not enough spare capacity for emerging producers to come back online. , whetherof producers it is iran through sanctions, venezuela, nigeria, the risk is to the upside. , and on the level downside, the total cost of shale becomes an issue. the risk is to the upside, where there is not enough spare capacity to come online quickly enough. haidi: what are your expectations with the opec meeting? >> i think they became very smart in managing the mark,
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where they can draw band the market. there were comments by opec in conjunction with russia. producers for oil to be sitting at those levels. there are not many managing producers losing money. oil stocks aree benefiting from this. for the u.s. to basically ask for more production, they can say there is a tightness in the market. iran, one and a half billion dollars a day, that's at capacity. thene thing i've noticed in process, you mentioned venezuela and iraq. isa way, the process basically handing market share to the u.s.. they are at 1.5 million barrels.
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it strikes me that one of the advantages of pumping more for saudi and russia, they want to keep as much of the u.s. shale out of the global market as possible, otherwise they are handing price over to a flexible producer. do you think there's an element of that? >> absolutely. it is a difficult balancing act. producing seven to 10 billion barrels a day. it is no longer a necessity to make up for strong demand and drawdowns in industry. for the last two to three years, it is growing at 3%. it is really significant as a factor. is not a country producer. it is a conglomeration of companies that have a profit motive. it is a fine balancing act. respond to that.
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>> we talk a lot about this in terms of the supply-side issue, but i was wondering your thoughts on demand, particularly demand. we have seen it incredibly strong this year, 10 million barrels a day. we saw saudi aramco was increasing their prices to asia for a four-year high today. is it time we are sort of underestimating the factor in the market? is it not just supply cuts but demand strength out of asia? >> absolutely. you pointed at you cannot get enough oil out of the u.s. at the moment, so it has to come from somewhere else. russia and opec can throttle that supplied quite effectively. seen it flag know little bit. i think opec is happy with the situation. at $60 to $65, and three to
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five-year oil at $50, that is forty much the sweet spot all producers. it's enough to forward hedge, but not incentivize ramping up of rigs and drilling new wells. it is also a level that if the saudi's decide to go public with aramco, the barrels in the ground are worth a lot of money at $65. you don't want to jeopardize that. talk abouton't -- we the trade war and tensions and it's not really a viable investable risk, but the oil market is so fragile. is that something you have given thought to as to how could -- how that could impact immediate demands? a marketk this is attracting a lot of attention for a few years. i was talking to matthew before he was saying he's getting a lot more inquiry from investors. people are interested the
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moment, which in some ways for the global economy is not a bad good thing. there are so many crosscutting elements. oil,- stepping away from we look at the gold market. that is a classic area where you would expect geopolitical tensions to cause things to happen, but it is just stuck. around or below $3000. the volatility -- $1300. the volatility has been up for most markets, but for gold, it is like it is still 2017. >> we still believe it is a critical part of any important folio. given the commodities spectrum, if you don't have gold in your that's against advice, but it is something all
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financial investors said consider. fantastic portfolio. if you look at 2008 and the russian currency crisis, local investors holding gold in that currency were doing -- are doing very well. you can have a fall of a couple hundred dollars and it simply takes up production. haidi: what are your assumptions when it comes to the u.s. dollar? >> it is purely a function of projections by the fed. i don't think it goes as far as what the markets are projecting at this point. i think over the next six months, you will see a short-term peak in the dollar, which is beneficial for commodities. >> another thing i'm wondering about, and this is more of a long-term factor, an interesting
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thing we have seen in the base metals space is a supply discipline coming from over producers. it is quite remarkable. generally,. it's like this you start to see the producers with prices like this really ramping up their products, and it's not happening. you think they can maintain that? >> i think people are still burnt. you look at glencoe, they almost went out of business a few years ago. companies are still haunted by what happened in the last six or seven years, with a significant bear market. i think it will take a few more years for the memories to fade enough where you start getting a lack of discipline, so to speak. this could be the first year at $60 to $70 oil where the shell produces positive cash flow and it will be interesting to see if they return it to shareholders or not. that's a sign of discipline in the middle space. haidi: one of the segments of the commodities being caught up
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in the trade rhetoric has been aggro. -- ag. we saw a plunge in sugar and wheat. is this going to be greater volatility? >> absolutely. prices are so low and volatility has been so low that it is similar to february. we will see some rollbacks. that's inevitable, considering where they have come from. as you said with gold, the volatility has been unbelievably low. with other markets, we see volatility increasing. haidi: are you opportunistic in agriculture? >> i think there's a lot more opportunities in corn and wheat thosee spreads between markets. sling markets have done particularly well for us. soy markets have
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done particularly well for us. when you trade the forward curve board corn versus weak, there are significant opportunities that have good return characteristics. >> how do you judge what has been happening in aluminum in the st few months? it is extraordinarily complicated. atis a very difficult market the moment. how do you see that playing out? >> it is really hard to trade because of political motive. that is the problem with key commodities. we have seen it with trade tariffs, sanctions on russia and iran. is one of the reasons commodities are such a good hedge in stressful markets. haidi: good to have you both here with us. mathew kaleel, good to have you, and our bloomberg opinion columnist, david. to.ng up, we talk
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have cryptocurrency thinks regulations will be sure footed on digital coins. this is bloomberg. ♪
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haidi: this is "bloomberg markets: asia." i'm haidi lun in sydney. a quick check of business flash headlines. two new hubs for the asian operation to bring costs down. we are told plans to consolidate up to 10 southeastern south asian countries and the new subsidiary. we are being told the plans are not final and can change. , whend: rupert murdoch u.k. approval for 21st century fox to acquire sky. it is not yet a done deal. comcast has submitted a 16% higher bid.
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haidi: conservative billionaire david koke is stepping away from pos family business and tical empire because of heth problems. his older brother charles released a statement. charles koch has been a primary leader of the political operation, the vast network that rivals the republican party in terms of conservative influence. rishaad: let's look at cryptocurrencies. sales of digital tokens this year already surpassing the record amount raised in the whole of 2017. look at what happened in april. millions of dollars. $4 billion worth. worldments around the
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tightening up on so-called ico score coin offerings. on friday, block one added to that with its eos token, offering to raise more than $4 billion. during the nearly year-long ico, it rose significantly. you can see it was not much higher, it was $18 billion at one stage, it is more than $12 billion right now. this is from coin market cap. let's look at the granddaddy of all bitcoin. we saw it just about approaching 18,800 hong kong dollars. it is down to around 60% from that december high, just below the $8,000 level. the institutional investors remain sharply divided. they are totally polarized on cryptocurrency. one of the champions is michael
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novogratz. he thinks it's a matter of time before the skeptics come around. he was speaking at the bloomberg invest summit in new york. he posited we are in on the role of the regulator. >> the regulators had to get involved. they are getting involved. they are doing what they are supposed to be doing. first thing is, let's go after fraud, go after market manipulation. the first two things are fraud and market manipulation. that's a good thing. the department of justice talked about market manipulation with these indexes inflating volume numbers. it's all true. we are going to knock out some rap from the system. i actually think it is healthy. there are bigger decisions to make. -- it's ok. eum they have not ruled
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on yet. i bet they would say it's not a security risk anymore. stuck, because they weren't ahead, there is a group of tokens that were issued, probably 2500 in total, but in reality, probably 200 that matter, that are in this regulatory no man's land. they have to figure out how to deal with that and they are working on it right now. my gut feeling is they will take out a law firm, take out a token, some of the promoters of these things, just to say, dudes, you have to play by the rules. but when we talk about the future, they are very constructive about new ways of financing companies, bringing liquidity and access to markets and the general population that they never had. reporter: you have made pretty , and i have accuse you of being, a true believer,
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but at the same. time, you trade this stuff how do you reconcile those two halves of your brain?on the one hand, the part of mike novogratz who says, i believe in this stuff, it will change the world to a degree, and the other part that says, that is screaming short? >> gravity is still gravity and market rules still work. when you see things that to aight go from an idea billion-dollar market cap, and these guys have only hire three people, that doesn't make sense to me. it is using the same rules and understanding of market psychology that i learned over 30 years and applying them to the new market. reporter: the ballet of the charts. >> the ballet of the charts. it is also being disciplined. sometimes you make mistakes.
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m owned a whole lot of ethereu and it started rallying a lot, and i started selling, may be too early. but broadly, it has benefited me and our organization to keep taking chips off the table, to trade extensions and pullbacks, to really do work on which companies -- they are not really even companies, they are ecosystems. which ecosystems do we believe have a shot of growing and sucking people into the? digital capital management founder and ceo mike novogratz eking with -- speaking with erik schatzker. it is time for our own ballet of the charts. viewers can play along and take a look on the bloomberg with the function at the bottom of your screen. ladies first, i believe. if it was ballet of the chart, i would not
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participate, but battle of the charts, my chart says the fed could be forcing the boj's hand, according to the boj advisor. he reckons the boj needs to be prepared for a possible overheating of the u.s. economy, and could quickly weaken the yen. the white line is the fed fund target rate, and that purple is the biaggi policy -- boj policy going nowhere. he thinks they could go around that ¥125 to the dollar level. haidi: over to you. let's have a look at something you can understand, how we have seen the top six technology companies in the world actually grow. this bar chart going back to 2000. you can see that microsoft was the absolute winner, secrets in all the others at that point
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with a near $200 billion market cap. it has grown and grown and grown. butthe others have, too, none more so than apple when it took the title of the biggest tech company in 2010. it was still smaller than at some mobile stage, but look at it now. the $1 trillion level. we are at $950 billion as we speak. there you have it. haidi: it was an interesting strategy to insult my intelligence, very daring. [laughter] a daring approach. notwithstanding that, i'm going to have to say rishaad is the winner today, because that is a very beautiful chart, and the tech come back is really the scene on the markets. take a look at the charts on be tv . this is bloomberg. ♪ two, down, back up!
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every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. emily: i am emily chang in san francisco and this is "bloomberg technology." is a turf war brewing between apple and facebook? apple takes another shot at the worldwide developers conference. why it is part of a larger break in policy and practices for both companies. plus, a former apple and google executive joins us to talk about apple's moves to curb tech addiction and whether other tech giants will follow suit.

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