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tv   Bloomberg Markets Asia  Bloomberg  October 25, 2018 10:00pm-11:00pm EDT

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today training through a lot of earnings, and what happened with the ecb.having a look ahead to gdp , and michael spencer coming from deutsche bank. yvonne: we are pretty it comes from where the equities are going, lacking direction. we are also watching the renminbi. it seems at that weak fix, there's only one direction for dollar china. david: pushing toward 696. you look up this morning looking at 3% gains in the u.s., maybe not translating to the asia-pacific. singapore, down about 1% at the moment. south korea also giving back about 1%. malaysia here as well. china holding up. again, it is mixed. we had a high close, then u.s. futures started pushing lower, which gave us the early indications that any gains we will get in the asia-pacific, all things equal would be capped.
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we start across the currency markets. it's about dollar strength, really. the dollar index, 1200, back to the level last seen at the start of last year. ftsequity futures, and the futures pushing 100. this week has really been a very painful and. five straight weeks of declines actually matches now the longest such streak going back to 2015. three-year record we are putting in place here. as far as this week is concerned, 4% drop, which is also the worst week since the plunge we got at the start of the year. it hasn't been kind. october usually is supposed to be kind for equity markets. we can wrap up with this, to give you a sense of where we are. we talked about it a little earlier on. a few things. fixing in yellow. fixing yesterday in green. today in red.
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you can see the massive gap pushing dollar offshore to 696.65. on a closing basis, if things stay the lady are, it would be the weakest level for the offshore currency going back to january of 2017. a lot to talk about here. there are other things happening in the world. sophie is here to tell us all about it. have toldchina set to at least two state owned energy companies to stop buying oil from iran ahead of u.s. sanctions. are told of revis temporary and purchases may resume depending on negotiations with washington. iran faces losing sales to its top oil customer after a help by other major buyers including japan and south korea. former vice president joe biden and after robert de niro are the latest targets of a series of suspected mail bombs sent to opponents of president trump. aw york city police received
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suspicious package. the new york times say investigators believe some were saudi arabia has all but admitted that the murder of jamal khashoggi was premeditated. state media says prosecutors have evidence from turkey that the suspect flew to istanbul with the intention of silencing the writer. the shifting narrative has sparked international criticism with the u.s. under growing pressure to act against the leading arab ally in the middle east. inflation in tokyo was unchanged this month, providing little incentive for the bank of japan to adjust policy at its board mueller -- meeting next week. inflation in the capital and atoss the country remains the eagle of 2% and higher energy prices underpinned modest gains.
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global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i sophie kamaruddin. this is bloomberg. yvonne: thank you. the u.s. is refusing to restart trade negotiations with china. beijing makes a concrete proposal to address the u.s. complaints about forced technology transfers and other economic issues. that's according to "the wall street journal," citing unidentified u.s. and chinese offensive -- chinese officials. rishaad: we speak of michael spencer from deutsche bank. it's just another one of these sell those, is it not? i think over the last few weeks, starting from mike pence's speech earlier, we are getting a broader perspective from washington about what it is they are trying to achieve. for most of this year, the chinese side has felt this was just about the bilateral deficit, and if we could commit to buying more from the u.s., this goes away. we are seeing now that there is a much more fundamental objective, which is to open the
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chinese markets to goods and services, to force china to adopt a much more liberal approach to foreign direct investment writer -- rather than requiring them through minority stakes and joint ventures. until china shows a willingness to negotiate on all those fronts, the pressure will get worse. rishaad: and the hardball played by the white house seems to be much harder with china than anywhere else, because we have been able to see things like nafta, other trade agreements, such as the one with korea, renegotiated with minor changes, and all you get is a little tweak, and a victory for donald trump there. it has been mentioned on a special line they cannot deal with any nonmarket economies, which is basically targeting china. >> yes. the issue is the disagreement between head of states and china is much deeper, more fundamental, more profound than the issues they had with europe and japan, and canada and mexico. it is going to take a lot more
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from the chinese side and a willingness to negotiate across a much broader range of issues, and things will be very difficult for president xi jinping to negotiate away. rishaad: can he do it? that's the thing. can this be enough? because the other narrative, which has now changed in china, and is coming out in state editorials, that they are refusing effectively, the white house trying to bring china down. listen toyou washington, you can understand why the chinese would say this is about containment, there's a political issue here as much as an economic issue. can he negotiate on the terms the americans want?absolutely. the xi jinping of 2012 would have welcomed opening up the chinese economy more, would have welcomed a liberalization of the investment regime to foreign companies. we are trying to find out who should jinping is. yvonne: is this a push toward capitalism, then?
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are are we veering toward a command economy still? much more there is demand in china that were direction reform is going. unbalanced reform over the last three or four years has been rather more statist, more biased against state unowned enterprises. what the u.s. is trying to do essentially is to force xi jinping to implement the kinds of reforms that we and they and most people in 2012 thought he was committing to. yvonne: i thought your chief china economist had a really important point and a very good one. we have the quote here. she basically was saying chinese production is serving the rest of the world, it's five times more important than the supply times -- supply chain serving the u.s. the house view seems that it
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will not he or china can essentially supply to the rest of the world and be ok. >> i think the focus for the u.s. is increasingly narrow. supply chain dynamics is based on electronics. it matters less whether you are buying furniture and clothing from china, but i think the u.s. is concerned that if they look at china as a strategic adversary, that they are importing all of their computers and most mobile phones and communications equipment from china, and that is a vulnerability. they are insisting that that part of the china supply chain exits china to a considerable degree. i think they are much less worried about the rest. rishaad: where do we go next? this was meant to sort of stop just after the midterms, but it looks like it will go on. this is a deep-seated rivalry coming to place right now. they are not competitive partners anymore, they seem to be just competitors. >> i think logically, we will get tariffs on u.s. imports from
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worth,the $250 billion that haven't been subject yet. i think early next year, there will be a 25% tariff. if the chinese are viewed as retaliating the way the white house looks at it, so if we get another step devaluation of the renminbi against the u.s. dollar in response to the tariffs, the risk is the level of the tariff goes even higher. in that sense, i think it will get a lot worse over the next year or more. yvonne: we have seen broad-based fiscal measures that were announced this week as well. what did you make of it? the market does not seem convinced it is they need to do more to shore up confidence ? >> i think it's hugely important because the narrative has been that china will respond to any negative shock to growth with another big credit stimulus ramping up infrastructure investment.
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policymakers until recently was, that's not what we are going to do, and what we got last weekend was a very strong fiscal stimulus. half percent of gdp is not coincidence. it is not confidently what you would all park the hit to chinese gdp growth is everything experts at a 25% tariff. the signal is, we will not respond to a trade war dampening of growth with another big credit stimulus. it will be fiscal. tax cuts for households, sme's. which is hugely important. investors are deeply worried that in response to a marginal slowdown in growth -- yvonne: they will go back to their old ways. we are looking at 11% decline in the yuan anyway. that is one aspect. but are we still underplaying the effect and the damage this can do? not just to the chinese economy, but globally speaking? >> if anything, people are exaggerating sort of the 12 month view. as you say, we had an 11%
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depreciation of the renminbi, so that has already offset more than what has been announced. against the u.s. economy growing better than 3%, europe growing trend,.5%, well above that is continuing to support export growth from china and the rest of asia. this panic in the market that the trade war is giving us a -- a sharp his slowdown in growth is wrong. this could drag on for two or three more years. china's response is not to open up but close off, then you have to think about potential growth in china five years down the road. potential growth in china today certain assumes the continued ability to attract investment from broader new technologies. if this doesn't get resolved, that assumption have to get questioned. yvonne: stay with us, michael spencer from deutsche bank, and the chief asian economist will stay with us to talk about
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beijing as well with prime minister shinzo abe's visit to china. rishaad: what will the data say about the future of the european central banks and buying program -- bond buying program? ♪
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david: let's have a look at this relationship between the japanese and chinese economy. easy pr is the function on the bloomberg. this is centered on japan. trop -- top trading partner, japan. line, the more it takes place between the two. we can have a look at china. one is for the u.s., the second is for japan. these two economies are joined at the hip. the other thing we wanted track flow. tourist who doesn't like going to japan? these are monthly visitors from china into these countries.
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from 2012, when relations were a bit frosty, it has overtaken the tourist flow into south korea and singapore. very interesting. that tracks the number of people. on a monthly basis, we are getting about 650,000 mainland chinese flocking to the streets of tokyo, what have you. interesting. yvonne: let's talk more about that, prime minister shinzo abe is in beijing for rare talks with president xi jinping. let's look at the implications with our guest, deutsche bank's michael spencer. theseked about how nations have been fraught with not just maritime tensions, a wartime history, can they separate that and focus on the economic cause? michael: it is difficult. i think they will downplay the history as much as they can. there are important current political issues they would like to work on, north korea being one.
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the contested islands in the east china sea being another. i think they are trying to make this more about economics. another. i think they are trying to make this more about economics. they both, in some sense, have a mutual concern about the u.s., much more so on the chinese side, but the japanese i think are concerned about the direction trump is taking u.s. trade policy generally. i think there is scope for better trade, investment. the japanese are investing a lot more in china then before the global financial crisis. they are concerned to make sure the climate remains conducive to that investment. you can paper over these cracks, but as soon as you get more contentious geopolitics going on with the islands, doesn't everything have to be reset? this is the problem. it is, in essence, just cosmetics. disagree. wouldn't from the japanese side, they need to be careful not to be seen suddenly rushing into china's arms.
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the u.s. is still there most important partner and ally. , at the margin, what can we do to set aside some of these differences? work on areas where there is a mutual interest like north korea, try and make sure at least for the time being that there isn't any new source of front.n on the trade i would agree with you. it might not take very much again for the kinds of actions we have seen in other parts of -- on the parts of chinese citizens and government pushing back on investment and traveled to japan, in response to some concern about the islands. shinzo abe, the amount of time he has spent in trying to cultivate donald trump. michael: there's also another angle. he also wants to rewrite the japanese constitution to allow a more normal defense posture. he is still trying to cozy up to china and be friendly, that sale,the winds out of the
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if the idea of rewriting the constitution is because you have been saying china is an adversary. i think we are looking for some short-term wins on trade and investment, but i would not expect this as a fundamental rethink of the relationship. yvonne: thank you. michael spencer will be back in a moment. up next, more on what happened overnight with the ecb. what could affect the eurozone as global risks are mounting? this is bloomberg. ♪
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yvonne: the european central banks confidence in the euro zone economy is about to face a seven-week test. enddata over that time will with updated forecasts for the final policy meeting of the year when mario draghi and his team must judge whether to halt the bond buying program. for the time being, he admits recent weakness is either temporary or remains manageable. information, while
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somewhat weaker than expected, remains overall consistent with an ongoing broad-based expansion of the euro area economy and gradually rising inflation pressures. rishaad: michael spencer still with us, chief economist at deutsche bank. does it really matter how the data plays out of the next seven weeks, ultimately? the bond buying program suffers from the law of diminishing returns. clearly, you have to stop it at some point, you get less bang for your buck now. michael: i agree. we are on track to end the brawn -- bond program at the end of the year. we are on track, given the economic outlook they currently have, with rate hikes in september next year. but the problem the ecb has, and the reason last nights meeting with such a nonevent, is that there are two very large political issues that could be incredibly important.
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there's the confrontation between the european commission and the italian government, which hopefully gets resolved over the next few days, but clearly wasn't resolved in time for yesterday's meeting. and that important hangs over -- rishaad: mario draghi has to say to rome, get your hands in order. yes, then you have brexit at the first quarter of last year -- next year. we have a soft brexit agree meant. neither of that mr. draghi has any influence over. the ecb has to sit and wait to see whether the politics evolves in a way that allows the economic forecast to play out, in which case we will get rate hikes before the end of next year. the policy response with a people is that the bond buying program will anderson, but? it's more guidance that will change? michael: that's our view.
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the stock of bonds, you don't really need to keep buying them. they would still end the bond buying program at the end of this year, but delayed first rate hikes into 2020. yvonne: i want to bring up a chart showing the btv spread. we can see we are above 300 basis points right now. mario draghi basically saying that they need to narrow the spreads. if it doesn't, how big of a pressure will this have on the italian banks, as well as their funding and budget issue? michael: importantly, because this feeds directly into the lag with the banks and willingness to extend credit. yvonne: so is draghi underestimating them? michael: the assumption is this will be resolved, in the spreads will be down. if they don't, then essentially what's happening is that the extra fiscal stimulus, the italian government is trying to get by running a deficit of 2.4% of gdp, is being lost to the crowding out from the widening bond spreads. rishaad: this is so much bigger
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and economy entered find with the rest of europe, but one thing i will say is there is a current account surplus. i'm being positive. [laughter] michael: it is. growth wise, italy is doing quite well. rishaad: relatively speaking. michael: relative to its own potential. it's doing better than the rest of europe relative to its own potential. this is a really fascinating turn of events. you've got an italian government pushing for a bigger fiscal stimulus, and if they get it, it will be completely offset by the crowding out due to the higher yields in the markets pricing in. yvonne: how are they going to view what the fed does?i think the market is still trying to contend with more rate hikes next year. does that impact the ecb in any way? michael: i don't think so. when we start raising rates it will be a gradual process, and there is still a lot of fluidity. i think the u.s. economy transpires in a way that the fed
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may only goes three times next year.that is not going to change how the ecb sees the outlook for its policy framework. rishaad: always a pleasure, thank you so much. michael spencer, chief economist at deutsche bank for asia-pacific. we are heading for the lunch break in tokyo. let's see what we've got. david: just a few movers to tell you about. the biggest decline percentagewise in the nikkei. when you look at profits essentially coming in half estimates for the preliminary is here, operating income for the quarter, canon is down. morgan stanley says because of what's happening in china, expect weak sales to continue for this company. suzuki motors, one or two days ago out of mitsubishi u.s., morgan stanley -- i look at you that a bit later on. the broad a look at
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markets. we are starting to completely go off the cliff, but we are starting to lose it if you will. session lows for msci asia. a lot of that comes down to what's happening in korea, down 1.5%. singapore down 1%. the nikkei is back to the lowest levels here since march. yearhe way back about one in the topix index. just for the month of october, down 12% of the nikkei 225.dollar-yen , 112.33. flat there. interesting. we will talk about the u.s. dollar yen and the subversion of money coming out. the eurosterling, we talked about the problems there, and the dollar index pushing out of this rate. nothing to note here in this market. market, of the forex frances cheung will be joining
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us in a couple of minutes to get a sense of where we are for em. in about five minutes. we will be back. ♪
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kong. brexit talks are on hold, but theresa may's cabinet has advanced talks with brussels. no new proposals are expected for monday's announcement. a no deal brexit would crush u.k. growth. 0.3% next year, plunging from 1.9% growth. asia dollar bond sales have been receding, the riskiest corners of the market, the development bank of mongolia back issuance from frontier nations in asia to a four-year high of $7.7
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billion, a 58 percent leap from last year. president trump wants to set drug prices using a global index to stop what he calls freeloading by other governments. programscut medicare to match lower prices in european countries where markets are more strict we controlled. drug costs have become a major issue in the u.s. and trump is hammering the topic ahead of the midterm election. the most powerful storm to hit the u.s. territories since 1950 person and is on track for the philippines and taiwan. the typhoon passed with winds 290 kilometers per hour and dropping 20 centimeters of rain. it cut power and local authorities say it can be months person and is on track for the philippines and before electricity is restored. bruce willis's latest movie opens friday after a rocky
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election vote in china. the star landed on the mainland three years ago and it ran into problems. the crew did not have enough money to pay the deposit on his hotel room. the top actress went missing. global news, 24 hours a day on air and at tic-toc on twitter, powered by 2700 journalists and analysts in more than 120 countries. this is bloomberg. jodi: currency market -- david: currency markets, a lot happening. you can see here we are following what has been happening in the offshore market. a very weak fix. i will not spend more time on that. the big question, where we are, let's look at our bloomberg chart. this is a chart we brought up a couple of months ago. move,estion is, we had a
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a sustained move between 2015 and 2016 of 6.2 to 6.9 on the exchange rate. this is inverted on dollar onshore, and have a look, you put that together, that is billions of u.s. dollars on a monthly basis. trillion.out 1.7 why are we not getting it here? interesting question. i want to note on the dollar we have two measures. one is more reflective of not just majors but yams as well. as well.'s whether it is italy or brexit, it has pulled money out of the euro and sterling. at the moment 96.73 takes you back to the same time. we are currently at 96.64.
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a little more and we breakout of that range. yvonne: i do not think mario draghi did much help with that as well. let's go to frances cheung, head asia macro strategy, westpac banking corporation, she joins us from singapore. stabilized, we see things a little higher, how sustainable is this? frances: because the market in the u.s. is expecting that said to hike interest rates, in some contrast to asian economies in the region. we get that the interest rate would still be able to support the dollar in the next few months, however the rapid move in the dollar is already done. going forward, the upside might be more limited than before. rishaad: how important will this gdp data be?
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are you talking about the u.s. or the korean war china gdp? rishaad: u.s. gdp? in the fed believe is confident about gdp growth. policies, at the fed they put little emphasis on the potential impact on the trade tensions. for now it seems the labor market is doing reasonably well. ,he sustained u.s. economy however looking beyond that, we believe in the middle of next year there might be another cycle coming in, and the economy might lose some of its steam. that fits into our view that we believe after two more hikes next year, that would be the end of the cycle. yvonne: given the dollar strength, and seeing the pboc
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today weaker than expected, where do we go now? is there one direction for dollar china? the chinesebelieve authorities will be comfortable with weakness as long as it is driven by market forces, and it does not invite unnecessary speculations. if the move is too rapid, we cannot rule out it would be in the market to move some more, but it is unlikely to reverse the trend in the near-term. at what happened in september, the pboc balance sheet, i think that suggested the pboc had been probably in the market. , itg forward some more might not be meaningful to focus
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on the particular level. they will be in various levels as long as they judge the move is to reckless with large capital outflows. the questionwas david mentioned, and his chart with the last time we went from 6.226.9, we saw significant amount of capital outflows. we are not seeing that yet. is this a countercyclical factor playing in? or are controls still in place? things, one is the big picture of the dollar, the , it isve exchange rate relatively stable. it will appreciate along with the asian peers, the backdrop is the dollar strength, and before 2015 there were limited controls and a lot of loopholes for
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capital outflow. they tighten those loopholes, it does not seem they have not gone back. if we look at the latest flow return to al positive, and that message is in the position of the 20% is working. rishaad: give me some headlines from the pboc, what they are saying is they do not want banks to be recalling loans indiscriminately. they are determined to regulate shadow banks. what is your take away, your reaction to those headlines? i think there are no contradictions. on one hand they want to shrink the shadow banking, but they warned the banks to support credit, because the long demand
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is moving away from the shadow banking, and the formal banking needs to be there to support the credit. it is not really only about the interest rate or the funding cost, but a lot of the smaller enterprises, and the environment is getting difficult for them to ensure credit. has beenee the pboc not only to provide liquidity into the market, but the main thing is how to channel this credit to factors in need, and the sectors which have potential to support economic activities. is aboutthat is it, it liquidity, and if you do not have more stimulus, you have to compensate the loss of that equity coming from the shadow banking. as that is clamped down, you lose that money, don't you? frances: yes, because as the shadow banking is shrinking, which enterprises, the most are
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the smaller ones. it has been difficult for them to get credit. -- the chapel out card triple out card, there could be targeted. there could be more incentives for the bank to extend credit. china shifts the focus back to domestic laws especially with the external headwind, they would go less aggressive on the deleveraging forces, but try to put the focus on supporting domestic activities. if you look at the bond market reaction, expectations are that the pboc will be there to provide liquidity when needed. at otherust looking central banks in asia, we have had a point where most are hitting the pause button hiking rates, and they can have breathing room. we do not have
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that currency from the central banks, or asia fx vulnerable to dollar strength question mark and what should i be watching out for? we don't believe the risk sentiment can be on a sustained basis, it will steal balances.he external the account deficit current sees will be more vulnerable when risk aversion is heightened. the latest decision is a case in point that after hiking rates for so many times, there might be a pause in the rate hiking cycle because central banks need to think about accommodating measures to stabilize the market , not only relying on interest rate hikes. i think they are correct in the inection, for example indonesia and philippines toviding domestic currencies try to satisfy hedging demand,
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and in the market in fx and the currency bond. rishaad: good to have you on the program. frances cheung, head asia macro strategy, westpac banking corporation. iran may lose its top buyer of crude. top oil firms have been told to halt their imports. we had the details next. this is bloomberg. ♪
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rishaad: russia has told two state oil firms to stop buying oil from iran, it is part of sanctions on the u.s. yvonne: it is temporary and may resume depending on the outcome of negotiations with the u.s.. joining us from tokyo with more on this story, steve, bring us
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the latest here. it.hat is exactly according to our sources, they had been told by that chinese government to pause imports of iranian crude. whether other companies are involved or being told that, we are not sure yet. our sources did emphasize this is temporary and does not mean they will go as far as japan or south korea, which have stopped imports of iranian crude. it also could be they are trying to negotiate waivers from the united states. a lot is unclear at the moment, but we know the reigning crude exports have been dropping as more countries stop their imports. rishaad: interesting timing, isn't it? taking place between xi jinping and trump on the sidelines of the g20 summit. yes, the timing is
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interesting. the united states and china have not had the best trade relationships in the last few months, there is a lot of trade tension. a lot of onlookers that china would be one of the biggest buyers of iranian crude, and would ignore the sanctions that are put out why the united states on november 4. but these sanctions, if you import iranian crude, you could lose access to american financial systems, so perhaps this is a shrewd move by the chinese government ahead of the meeting at the g20. this could be a way for the unite states in china to find common ground. there are a lot of things that are unclear, but the timing shows it is right before this meeting. what they will get out of it is ,till unclear, but i am sure china did not stop importing american crude when the trade sanctions were put on, it showed
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that perhaps china is not necessarily at the point where they will put crude on the chopping block when it comes to the relationship with the united states. this is naturally having effect on oil companies. we will see how they are reacting to this, and investor sentiment engaged to this. david: there is that story and why we are seeing the stock's oil related. see notes,ins to they had production numbers come out yesterday. that is keeping analysts like morgan stanley bullish on the stocks. that is the story as far as oil counters are concerned. oil prices down, it was a big move overnight. thing, you have earnings out, they look good.
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resultss are lowered on . speaking of cutting the price target on a stock, jefferies out with a cleaver here, 62% price target. when you look at the lens business, and the risk that that poses as the bigger pie is concerned, what jefferies did to give you an idea what the price target is now, they cut it from $169 to $65, and that is where we are trading at the moment. you get an idea of what jefferies is up to their. a lot of sharp moves. rishaad: slashing it. yvonne: [laughter] david: 62%. singapore is taking a different approach.
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yvonne: the managing director spoke exclusively to bloomberg about how the central bank is working with tech players and managing risk. >> if you cannot get innovation right or regulatory, and in the regulation space we are where in a framework players,ers -- fintech we regulate commensurate to the risks they pose, and this makes us take activity-based approaches. the entity-based approach is one that looks at banks, insurance companies, financial advisors. you take an activity-based approach and you ask if the functions that are carried out, maybe some deposit holding. you apply only regulations that
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are pertinent to those activities, rather than load them up with a range of regulatory burdens. we are also saying we will not leave players who carry out financial activities unregulated, we are bringing tions.nto the regula we believe it strikes the right balance there is a level playing field, risks are managed well. at the same time, the burden is more customized to their activities. >> how is your approach different from other developed countries? is that enough in a way for you to be a leading player? i think we look to do better in other jurisdictions, and we learn what they are doing and many are doing interesting things. one thing we have different in our approach, all of us are
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making sure the risk correlates to the activities. we are probably more forward and progressive in a sense that we work alongside industry players to do some of this architecture. it is much more collaborative investment, whether it is a it is an industry effort with central bank regulatory facilitation's. it is a bit more forward. ravi menon speaking. yvonne: bp earnings slumped in the last quarter, and troubles recovering from the sanctions. that income $81 million in september compared with the projection will break even near 143 million.
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dollars, lyingn about exports to iran and north korea. rishaad: google is trying to reassure staff after facing allegations of harassment and sconduct. china says reports that it is tapping president trump's phone is nothing but fake news. the president dismissed the story, and the white house says his phones are rotated regularly. they enjoy some humor in the reports, saying if they are worried about iphones being vulnerable, they should replace their device. rishaad: this is something we saw. yvonne: you never know these days.
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more ahead, this is bloomberg. ♪
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rishaad: you can view and access
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charts. yvonne: i will choose kerry. gothe chinese dollar bonds hit hard during the recent selloff in high-yield bonds because of the risk off the sentiment, and triggered by the rout in the u.s. and china stock market. my chart shows these dollar have hit new lows since the issue last year. while the wild swing from the stock market has lowered risk appetites around investors, the developers fundamentals are not encouraging either. some investors say they are not competent to hold the bonds especially on the longer end.
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there is a silver lining, next month could be the interim point of buying these bonds due to the selloff because the valuation has emerged, especially if you are a longer investor. yvonne: that is a tough one to be. beat.t is a tough one to in this case, the white line shows it has fallen to a 14 month low. impact to protect the rupee, it is another $15 billion of tosion that could close eight months of cover.
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every time you supply a dollar in the economy you pull a liquidity, which is creating a deficit and it is heading toward festival season. we have festivals lined up, and that is the best time to shop. the liquidity creates more problems. rishaad: this is a tough one here. i think given the dollar strength today, congratulations. thank you so much. g tv is where you will see those charts. this is bloomberg. ♪
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emily: i'm emily chang in san francisco. this is "bloomberg technology. : coming up in the next hour, amazon reporting third-quarter results and shares are reacting to a miss. jeff bezos says the company is not slowing down. we will break down the numbers. plus, alphabet missed on revenue. just how much have rising payoffs? and wall street eyes i spoke with the ceo. alphabet's problems don't then there, a bombshell report from the new york times claims they


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