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tv   Bloomberg Markets Asia  Bloomberg  November 21, 2019 9:00pm-11:00pm EST

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all right. good morning if you're just joining us. there we go. some live pictures of what appears to be the ceiling. that is the entrance to the bloomberg economy forum where the event is taking place in beijing. the google service tells made his five degrees. it probably feels more like negative five. rishaad: 20 degrees here in hong kong. we have a lot of guests wind up including rages ian brenner. and the china renee's aunt chairman. >> do not meet -- do not miss interviews with the sunway chairman. joining us from the conference taking place at the chinese capital. rishaad: holding off any further details about what might happen
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with beijing and washington talks. we are waiting for had -- for that. the hang seng raising some of the losses we have seen. mckay up three quarters of 1%. asx, which has had a rough time of it. up 6/10 of 1%. a bad day for manila. david: yesterday, we were down 1% that is standing on the screens. rishaad: let's have a look at some of the other asset classes. this is a position we have had. nickel has had a torrid time should it has entered a bear market. 20% down since the beginning part of september. prices may snap back next year if the conditions start to reemerge. a bit of a loose side of things that has driven things downward.
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investors have continued to grapple with the uncertainty of trade. let's have a look at what is going with the australian dollar. just up a fraction at the moment. we had the commonwealth of australia's pi numbers. inwed manufacturing contractor he services. picture,t the crude -- $.25 toks at 20 the barrel. the 10 year yield on the japanese bonds. the are yielding eight basis points in negative terrain. we have key gauges of price taking up slightly. it all follows last month's sales tax. a further weakening of coin inflation. this illustrates the difficulty the bank of japan has been facing as it struggles to boost prices higher. to su let's get it over
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keenan. she is in new york. she has an update on the first word news. withe are going to start president trump who has signed a four week spending bill that puts off a possible government shutdown until december 20. the senate cleared the measure earlier after it had already passed the house. this stopgap measure became necessary because congress once again failed to complete action on the 12th annual spending bills that were needed to keep agencies operating by the october 1 start of the fiscal year. the former governor of the people's bank of china says policymakers still have room to act providing monetary and fiscal work in unions. he was speaking at a new economy forum in beijing amid continuing debate on how the government will handle china's widening slowdown. his comments underlined the central banks concern about letting borrowing costs fall too much.
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avoid -- still try to into the negative interest rates area. wewill be a success if manage it. to consider that much unconventional policy. su: prime minister benjamin netanyahu is to face trial for corruption. he has been charged with bribery, fraud, and breach of trust in move that could halt his career. he is the first sitting israeli leader to be indicted as the justice ministry painted the picture of a politician who abused his position and sacrificed the integrity of his office. he says the investigation is tainted and did not pursue the truth. morningresident obama's
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advances in -- obama is morning advances in technology is creating a splintering world. at a salesforce.com conference in san francisco, u.s. former president said new technology is allowing companies and citizens to do more, but it is also feeling more extreme inequality and contributing to the growth of public anger and anxiety. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. david: thank you so much. trade tensions and a shaky outlook for the global economy continue to dominate the conversations at the bloomberg new economy forum in beijing. let's hear what some of these influential names have had to say. foothillsstill in the of a cold war.
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>> we should pursue common comprehensive cooperative and sustainable security and reject zero-sum game and cold war mentality. >> there is a period in which there is a piece because nobody wants to fight the country. there is a new world order. >> only cooperation as the answer. worry some of the percentage will be irreversible. >> the confidence of supply from a single source for anybody in the world has reduced. >> you see supply chains moving customers move production. we continue to serve our customers in china with our plans here. >> there is a good chance we will see some progress on the trade discussion. i have been fortunate to speak to policy makers on both sides. i am encouraged. rishaad: we can get over to the bloomberg new economy forum in beijing.
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apparently, the u.s.-china tech bribery is the greatest threat to globalization. i want to hear about how this manifests itself. haslinda: that is the general sentiment here. founder and ceo of the eurasia group days here. theeard views about in foothills of the cold war, cold war mentality. the largest two economies in the world. we have been talking about a trade deal with them for two years. they are getting tired, the chinese. they are getting angry even though they are fairly quiet about it. they also think they are in a better vision to wait -- a better position to wait the americans out. we have trump very focused on the market and the implications
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of further trade escalation. and, we have economic impact that in 2018 -- 2019, 2020, it plays out to her the americans more. we are of the reasons, far from a significant breakthrough. we might be able to get to the of the chinese being able to buy the big, but we are far from anything that looks like trust. haslinda: the phase one deal is more symbolic than significant? how much is the u.s. getting in the phase one deal? >> trump around the world is looking to get some announcements done in advance of the election. whether it is bringing the taliban in to camp david, whether it is having a new summit with the north koreans, whether it is having a phone call with the iranian president,
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on all of these things, he has tried to, let's make a deal. he has failed on all three. on china, he is closer. if there is going to be a deal, it is going to be one that is not going to look good for the americans. the chinese are no closer today to the structural demands the americans have made for removing subsidies or changing the legal system in terms of intellectual property. the chinese are not prepared to do those things. they feel the americans have less ammunition than before. xi jinping feels like he has already given political capital to trump, and it is not worked out. if there is going to be a deal, the will be doing most of the -- the americans will be doing most of the giving. haslinda: we are hearing from chinese leadership that they do .ot know what the u.s. wants that --erspective is
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would like to get to a place where he would agree. he is not at all confident. the markets are reacting. even though i would be 60-40 that we get phase one done ever that means, it is slipping just like the u.s.-mexico-canada agreement. haslinda: our conditions changing? china does not know what the u.s. once? >> it is the things americans have demanded that core are redlined for the chinese. they are not going to change their state capital system. they are not going to engage in political reforms. for decades, the american perspective on china is as they get wealthier, they will adapt to american norms and values. they are not doing that. when other countries do not do hat like a ron, -- like
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iran, we basically say we are going to beat the crab out of you. china is a country that is not adapting to american exceptionalism. they are big enough to say no. we do not have the ability to force them. . to the table the cost of not compromising is more borne by the chinese than the americans economically ultimately, but still, politically, americans do not have as much stomach for that fight with a four year election cycle. xi jinping gets to be president for life. he just has more resilient in that guard. haslinda: add to that the hong kong bill. how is that complicating the u.s.-china trade war? >> it is an annoyance. certainly, the chinese do not want to be in a situation where they are whirling tanks through hong kong. they understand the implication that would have for the views of
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china internationally. actual peaceful legislation is an embarrassment for the chinese, but it will not have meaningful economic implications in hong kong. the much bigger issue is on technology. the decision by the chinese government to consciously leduple from the american set of standards, from our internet, the world wide web, from our data systems, the cloud , i think, is the most meaningful geopolitical decision that has been made by any country since the soviet union. one of the reasons we are here in china today is because of globalization. goods and services and ideas moving faster and faster. doing extraordinary things for humanity. the decision to decouple in technology is the first major step away from that where you actually are going to have a critical component of the 21st
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century economy no longer globalizing and being split in two. haslinda: the question is how real is the threat of decoupling? in the conversations at this conference, a lot of people say they envision that. interconnected, you cannot decouple. >> i think the commodities market is global and getting more global. the goods and services market is global and getting a little less global because we do not need as much labor in the supply chain and emerging-market labor is more expensive. it is not becoming radically less global. when we talk about big data and how people are going to have information ecosystems around them and 5g, decoupling is happening. facebook is not here. the chinese people do not have access to facebook. we in america are not going to have access to huawei. we are building a virtual wall.
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the question for the next generation is where is the wall going to be. what countries will be included in how high is it going to be? there will be decoupling on the database. haslinda: you talk about 5g and huawei. is it failed to say that the economies will gravitate towards huawei given that it is cheaper and of good quality? i think it is fair to say that south east asia, sub-saharan africa, much of south america, and some of eastern europe is going to be much more aligned. the question will be, are the americans able to get a unified, multilateral blog with all of the wealthy countries in the world together? if you do that, ultimately, the chinese will not want to be excluded. that will be your liver and a five or 10 years time to say, we are happy to bring you in, but you will have to adapt your standards to those that are held
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by the west. trump is not aligned towards multilateralism. he has america first. the europeans do not trust him. the europeans, this is a challenging moment with brings exit and a lot of populism happening. the chinese are waiting check. italy joins belt and road. eastern europeans are using huawei. why are we concerned about national security? pay foreuropeans will nato but not a lot for national security and technology. the americans are going to have to be much more strategic. it is hard to tell trump looking at 2020 with a lack of solid strategic advisors around him, you need to get this right. haslinda: you talk about tech, you have to doug about data sovereignty more tomorrow. people are wanting data to be localized. how will this play out?
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what does this mean for the world? >> it means less efficiency for the companies. higher cost. europeans do not have these companies themselves, but they do have regulatory authority. particularly in technology, their views of privacy and copyright and data sovereignty a much more robust than in washington, d.c. they are doing a lot of the driving of these policies. if you are in american tech company, you cannot give up access to the world's largest market. we are seeing in california, it is the fifth largest economy in the world. they are aligning with a lot of these standards. i would pay more attention to what is happening in brussels and berlin. haslinda: one final question. of all the risks including brexit, what is the worst? >> the worst is what we are talking about. the fact that henry kissinger,
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96 years old, this talking about being at the foothills of the cold war, you're not going to fight militarily against the chinese because they do not have global military capabilities. we are right now in cold war. we want them to lose. even though we are fighting, ultimately, we know that hundreds both of us. where you have separate technology architecture, the americans and chinese will want to defeat the other side. that is how you end up with a lot of depredation for humanity. haslinda: everyone is in a loser of this. en from eurasia here at the conference in beijing. back to you guys. david: great stuff. en burner at the new economy form. rishaad: we have a load more interviews live from the new economic forum taking place in
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beijing. this is just some -- these are just some of the people we are going to be talking to in the coming hours. this is bloomberg. ♪
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rishaad: you are back with bloomberg markets. you also back with the new economy form taking place in beijing. david solomon speaking to us exclusively a bit earlier. >> there has been significant shifts in market structure and regulation over the last 10 years. we have not had a lot of market stress. other things we think about from ifisk perspective is that there was more market stress, where could there be liquidity issues? the events in the repo market a month ago are an indication of
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the fact that when marks are -- that way market structure changes, and for some reason the supply and demand dynamic changes, you cannot have tightening liquidity. that is something to watch. >> can you protect yourself in some way? >> i do not think it is so much about goldman sachs. generally speaking, investors liquid securities, they are looking at the amount of liquidity available today. one of the things you have to do period of stress, you have to expect there will be less with bloomberg markets: liquidity.powe you have to have enough liquidity to expect. >> what else -- as a text -- is it shadow banking for investors looking for yields or something else? >> it is my job to worry.
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it is my job as we think about our clients to the good about things that could affect our clients. i think in a lot of ways, the benignment is relatively from an economic perspective. in the u.s., the economy is doing quite well. one of our lead u.s. economist was talking about the fight we might make some progress on trade and monetary policy has been more accommodative. a -- expecting in 2020 expecting an acceleration kit he commented that in the u.k., there is more confidence there will be a path out of brexit. could see a slight acceleration in economic activity. if you look across europe, maybe growth.vement on slower economically, we are doing ok. >> is there anything that is positive out there? what you're describing are
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things that are getting less bad. >> the world is growing at three and a half percent. that is not bad. i think you have to -- everybody is looking for what is wrong. there are a lot of things that are going well. are there issues? sure. china-u.s. relationship a headwind? yes. we need to make progress? yes. a few step back at a high level, things are going ok. the economy is moving forward. ande are lots of issues political processes that need to be dealt with. they can all -- we can all find places where we need to do better. generally speaking from an economic perspective, we are doing ok. latestlet's get to your business flash headlines. international plan to
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close not onlyeport says they will consider renewing its leases if the rents are cut in half. the company had 118 stories in hong kong as of september. shares have slumped 40% this year alone. rishaad: chinese contract drugmaker pharma in beijing is said to have raised almost $600 million after praising it hong kong listing at the top end of range. kong listing come in less than a year after pharma completed the sale in shenzhen. the stock has risen more than 600% since the listing. david: tesla says they aim to start belaboring made in china model threes as it moves towards more production -- moves toward full production. elon musk says he hopes customers receive their cars
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before spring festival. last month, tesla said it expected to begin delivery in the fourth quarter, but did not -- in the first quarter did not specify when. speaking of deliveries, delivering on earnings. cn is one stock we are watching closely. trainer 30% recovery. we were down 90% yesterday. we started out yesterday at 450. keep that in mind. --t bank rishaad: if you look at west bank again, down. you were talking about this earlier. there we go. that is west bank after 22 million cases of money laundering can let's have a look at some of these stocks, which are moving to the japanese lunch break.
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bizarrely down after the ceo says he is getting serious about profits. also announcing the end of production of some products such as liquid crystal displays. other units may be combined. nintendo now at 2.9% down. 2.8% lower. this, stanley downgrading saying it expects a low in -- a l switch generation growth. softbank, this is connected with wework. suzuki and other automakers are making headlines as we have another recall taking place. of the suzuki between 2000ctured
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and 2013. david: after the short break, we are heading back to a cold november morning in beijing. lots of interviews still coming up. this is bloomberg. ♪
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rishaad: china's tech sectors flourished over the past decade. the tech wereas target some high profile names. david: let's get back to beijing where the new economy form is taking place. selina wang, our china correspondent, is standing by with our next guest. here with selina: i'm the chairman and ceo of china renaissance. your firm has grown by advising new startups. as the overall sector has cooled, so have your stocks
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since going public. what is your view on the state of dealmaking in china. >> good to see you again. based on our number, activity has come down a big notch this year. most in terms of the fund rate as well as the amount of investment. on our measure, comes down between a half and one third. the overall climate is -- the -- still able to raise a lot of capital. still same time, interesting innovation happening. the 5g. the health care is still very hot. selina: has the venture capital industry reached a bottom? think not so much in terms
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of the slight of the capital. it may be the top funds -- people tend to be more cautious because of what is going on on the macro level. people want to save more time and see if they can negotiate a better deal. you have said -- selina: you have said your goal is to build china renaissance with a seat at the table. as china is opening its financial sector, they are allowing foreign firms to own their joint ventures. how does that change the competitive landscape >> -- that competitive escape? >> foreign investors can bring best practice to in a way where we push for the market reform. that in itself is the positive for a private sector company. i will give you one example free flow market capitalization currently is held
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by foreigners. that is very positive. selina: so you are not worried about the increasing competition? >> we are not worried about it. we have been competing with big guys all the time. selina: we have been talking about barriers to talent and capital. for aawmakers are calling forced extreme -- >> i think it is difficult. i am not sure what the legal avenue to do that it is. secondly, i do not think it is a smart thing to do. at the end of the day, the biggest loser would be the u.s. institutional investors. selina: does this change how you are advising company? this is definitely a turbulent time. sometimes, our clients are confused. i would say, from a clients perspective, how we interact with our clients, need to help them assess the overall risk in
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the different markets. this is something that was not considered before, but i do something our clients are considering them -- considering now. selina: how significant is the alibaba ipo to the hong kong market and as a vote of confidence it can still a global financial hub amid the unrest? >> given everything that is going on, the financial market in a hong kong shows remarkable resilience. you the strength of the market. interestedining very to see how the stock trades. overall, i think it is a positive. selina: would you advise investors to be cautious? think it is just an extension of the trading values. overall, i think it will be good
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for the company and the investor as well. selina: are any of the companies you are advising shifting or changing their plans for hong kong? because of the unrest. >> not yet. the financial market is remaining resilient. we have not seen any impact on the five financial market -- on the financial market. selina: going overseas has always been a challenge for chinese tech companies. with the growing scrutiny of chinese companies abroad, what you think this current environment means for the ability of chinese companies, the new wave of chinese companies to go global? companye hand, the really needs to us as their business risk very carefully. in terms of market risk and technology risk because of what is going on. hand, it would sort of encourage them to look at a diversified business outside of
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china, may be branching to a more emerging market. in terms of southeast asia and other emerging markets. selina: they are deeply or the u.s. then? the u.s. hashink ever been the sole focus should -- the sole focus. selina: what is next? what are you looking at? >> we are still very positive about ai data. seeing more and more applications. enterprise solutions help the chinese businesses to be more efficient and better at management. we are also seeing a very interesting new generation of
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indigenous consumer brands come out of china. -- younger consumers are want to their own brands. we have some really talented entrepreneurs utilizing multi channel availability of e-commerce to launch their new products. a lot of exciting stuff coming up should -- coming up. selina: thank you for joining us and taking time out of this conference to talk to us. rishaad: the bloomberg news economy form in beijing. david: let's get other things happening in the world. things, u.k.er election campaign. it has seen labor publishing most radical manifesto from a major party in decades. it promises to raise tax , fundes by 10% a year
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-- and the invested interest of the animate of the ordinary people. general election is scheduled for december 12. copil banks that have been advising on the saudi aramco ipo are being sidelined after the plan attracted only lukewarm interest from foreign investors. jp morgan, morgan stanley, and other big names must work through local vendors if the ipo is paired back to a domestic affair. sources also tell us the international banks will not have access to the ipo order book without aramco's permission. the indian prime minister is putting the flagging economy front and center with the biggest privatization drive in more than a decade. he is also renewing attempts to -- at the shadow banking center. india is mired by a deepening slowdown and winning
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consumption. he wants to transform the economy into a $5 trillion operation by the year 2025. finally, sydney and much of new south wales continued to choke on pollution from brushfires or bushfires burning across eastern and southern australia. conditions are so bad it is almost impossible to see the city's iconic bridge and concert hall. the royal fire service says the smoke is mainly coming from fires in the north of new south wales with pollution levels 10 times higher than normal. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. just a quick check of your markets. mostly, stocks are trending higher. we are slightly higher for the week.
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the philippines on its biggest two day drop in six weeks. currency markets, not a lot to tell you about. yields essentially trading sideways. rishaad: let's tell you what we have coming up on bloomberg markets. theg to be exclusively from bloomberg new economy form in beijing. all of that is on its way. ♪
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david: this long-running trade -- these long-running trade tensions with the u.s. are expected to accelerate china's push to develop its own medical device industry. rishaad: our next guest is the
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leader of health care investment. let's find out who she is. the china correspondent is in beijing. that is right. she is the managing partner. she leads their health care portfolio. i want to start out on the health innovation sector in china. with the growing trade tensions and geopolitical tensions we are seeing between the u.s. and china, but you think are the implications on health care innovation in china? is chineseare seeing funds looking to invest in the u.s. have dropped 90% in the last 18 months. there is actually not a whole lot of difference. we have seen more entrepreneurs that were from the u.s. moving to china to start companies. we disclosed the third company
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in the last half of the year where there was it entrepreneur in the u.s. looking to start a company in shanghai or hong kong. some of the newest technology and so forth. other than that, the consolidation of funds in china is happening. care onstment in health tech has dropped 70%. also, the u.s. dollar fund is raising. the lp,are seeing is instead of investing in 30 to 40 funds, they are investing in three to five funds and putting more money into each fund. selina: the entrepreneurs that are going back to china to start health care ventures, are they leaving the u.s. because of the geopolitical tensions -- they fear they are not welcome? considerk they have to if they were to start a company
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in the u.s., sometimes, they worry that maybe some of the ip cannot be licensed to china. china, being the second largest in the market or the largest market in the world in different areas -- and also the cost of political development in china is cheaper. it would be cheaper for them to develop drugs if they do not have china at the back end. some of them decide to start a company in china because if they were to start in china, they can freely license technology globally. we are also seeing during this process, there is an influx of european funds in companies coming to china and wanting to partner with them. selina: i was just speaking with the astrazeneca cao who is making a fund in china. how much innovation are you seeing in the biotech industry in china and where does it compare to the united states? >> it on the sector. in health care, we are still quite behind.
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it comes to medical devices, i just had a one-on-one meeting with the global ceo of medtronics when he went to shanghai to open an innovation lab. he said there are two or three companies in our portfolio that they would like to coinvest or acquire outright because technology is better what they are seeing in the u.s. it is very encouraging to see there is some innovation coming from china. selina: can you say what companies those were? when you are ready to tell us -- >> one of them is planning for a hong kong ipo shortly. selina: we will take a look at that. you are focused on china, you do have r&b and u.s. dollar funds. how is the trade tension affecting your investment strategy or the strategy of your portfolio company? investment strategy remains the same. because of the drop in investment, the price has come
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down. on of the deals we are closing, we are investing at the same valuation as two and a half years ago. in u.s. dollars as well, we are seeing the prices drop somewhat. that is a reflection of what we are seeing in the performance of the hong kong ipo for biotech. as you so in the first batch of companies, the bank has praised the companies hire valuation. in the second batch, the performance was better because the valuation they priced was more reasonable. as a result, that pushed back on the private sector as well where the private market -- the pricing was coming up lower. the pre-ipo valuation has also dropped. overall, that is a good thing. selina: a big topic of this conference is tech decoupling, blacklist export bans. base plus plus was put on the u.s. blacklist, and artificial
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intelligence company. what is your perspective on the blacklist? does it change in the way you invest in ai companies in china? >> we will continue to invest in ai companies in china. also the latest technology. i believe what we are seeing is some folks feel it is a lot faster to collect data in ai in china. a case in point is investing in the self-driving cars, in china, they are one of the leading once. drivee were doing a test in california, 10 minutes of driving, we only saw 20 cars. when we are doing a test drive in guangzhou, there were pedestrians walking in the wrong direction, motorcyclists, so forth. the data collection is so much more intense in china. we believe this is a good area to invest. selina: with the growing scrutiny in china, do you feel as an investor, you have to do
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more ethical due? diligence before making an investment -- ethical due diligence before making an investment? >> definitely. we want to make sure the clinical data is up to par. it comes to technology, we want to be doing the same thing. what to say also that when i was at the health care conference in boston earlier this year, mass general, they all feel that china is the solution to affordable health care for the world. that is very important for us to continue to develop drugs in china and working with the world. saga hadas the wework any effects? >> it has come down in some of the big pricing companies. i was talking to a cao who is trying to praise his company at 15 billion. he has to price it down to 12 or 10. selina: i want to find out who later. thank you for joining us and
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taking time to be with us today. david: when you find out, let us know privately. when they are ready to to. -- ready to tell. rishaad: microsoft founder bill gates touched on a number of issues in china -- in beijing. david: he sat down with our boss -- discuss the relations between the u.s. and area and whether the gates open to a a possible u.s. carbon tax. >> a way to do it if you look at the u.s. in particular, i do not think it is likely to happen. we have had tax credits on renewables. we have five renewable portfolio standards. you can get there in a way that is less neutral. there is a variety of regulations and helping some
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sectors. what is happening with solar and wind is good. what has happened in the industrial sector, people have gotten excited about the low hanging fruit. electric cars, that is the easy part. grid,ill have to do the with the various things including industrial are very difficult. >> a big theme of this conference has been china and america. henry kissinger said we are in the foothills of the cold war. as long as i have known you, you have been a passionate advocate of engagement with china. how do you view the current situation? >> even more passionate about the value of engagement than ever. years, i have seen a lot of voices arguing against that, even arguing in some extreme cases for decoupling. i think it is a benefit there is interdependent. dachshund -- interdependence. the fact that we have tourists
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from japan. students from china. companies that do research in china. apple is the tech company that sells -- the only tech company that sells -- that interdependence can lead to more dialogue and mutual understanding. have people arguing against that is a serious concern. that was bill gates speaking at our new economy form in beijing. rishaad: loads more interviews coming up. you are with bloomberg. ♪
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rishaad: we are counting down to the start of the trading day in mumbai. managing to drop by quarter of on thehe session thursday. looking also at for their moods in terms of shadow banking and other news making headlines. david: we came awfully close. we will see what happens. awfully close to recouping or
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touching a new record high on both encz mugs in india. short ofout 100 points the level. from one economy to know, what is already a big economy, and now it is bigger. the chinese national bureau statistics, 90 minutes ago, released the latest report. they revised the size of the economy bigger and higher last year to now just under 14 trillion u.s. dollars. the size of the u.s. economy as of last year. rishaad: more than $270 billion added to the initial reading . they headed the side of the finish economy in this revision. let's have a look at the latest business flash headlines. shipments of the area -- of apples wireless air pods. the surge has been driven by
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higher-than-expected demand to the prom model unveiled in october. the offer noise cancellation and water resistance. alterable suppliers have been competing to manufacture it . david: executives at softbank are looking for a way to reduce the size of the 3 billion dollar ork.r for wew we are told the plan centers on a shrinking. couldunclear how softbank we nag on its agreement with we work. wework: meanwhile, beginning the first of hundreds of layoffs. being, 2400 employees will let go. their present about 20% of the workforce. -- that representing about 20%
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of the workforce. reporting a net loss of one and a quarter billion dollars in the third quarter. trader, billionaire louis bacon, is quitting that hedge fund business. he will return outside investment money. founded morgan capital in 1989 and became the followers -- and becoming the biggest traders, producing annual returns of 30%. we are going to be returning to the scene, and that is of course, beijing, or we have the bloomberg new economy forum taking place.
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>> it is almost 11:00 in beijing. forum,om the new economy day two. rishaad: last hour of the morning session. asian stocks edging up, we have investors weighing conflicting trade signals. china remaining optimistic. goldman sachs says it still needs some kind of a deal. we hear from the ceo, david solomon. monetary and fiscal policy must work together. this is bloomberg markets.
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♪ we are coming to you live from the bloomberg new economy forum. trade is the overriding theme. aboutkissinger talking the cold war mentality. u.s. and china are in the foothills of the cold war. we heard from hank paulson about an iron curtain descending. both sides need to work together to show that globalization -- lots of concern where properties are as well. we have an exclusive interview
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about how he intends to tap on the positive technology in indonesia. rishaad: have a look at what is going on in the market. shanghai composite, raising the losses -- the gains that we had in the morning. down by 1/10 of 1%. we are coming off the highs of the day. we had a modest opening bump. the prospects become more confusing by the day. there is an argument being made that investors have decided the u.s. and china have talked themselves to a standstill. that is preferable to the open confrontation that nearly broke out earlier this year. the base case currently is an expectation that the deal and
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that's to december 15 tariff hikes will be pushed into next year. that is the position we are in. we had the data out earlier showing the sales tax hike in japan, very little effect with the rising prices. it is actually a bit of a headache for the bank of japan governor. the commonwealth bank of australia, pmi data showing manufacturing and services had fallen into negative terrain. crude, 58.19. nickel moving up again, and again after being in the doldrums. citigroup suggesting we could be seeing an upside move as the market coalesces and the market regroups. drop since the
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beginning of september. a quick look for what we have for indian futures. was down by one quarter of 1%. -- can see a little bit of futures trading in singapore. what is going on with the rupee? fairly stable. -- barely stable. yields are breaching once again the 6.5% handle. let's go to new york and have a look at what is going on, here is su keenan. >> we will start with president trump, he has signed a four-week spending deal to put off what was a possible government shutdown. at least until december 20. the senate cleared the measure earlier in the day with a 74-20 vote and this was after the bill passed in the house.
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the stop got measure became necessary because congress failed to complete action on the 12 annual spending bills to keep agencies operating by the start of the fiscal year. the former governor of the people's bank of china says policymakers -- providing monetary and fiscal work in union. he was speaking at the new economy forum in beijing amid continuing debate about how the government will handle china's widening slowdown. his comments underlined the central bank's concern about letting borrowing costs fall too much. to avoid thell try negative interest rates area. if we could successfully manage macroeconomic economy --
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we do not need to consider that much. banks have been advising on the saudi aramco ipo are being sidelined after the plan retracted risk from foreign investors. throughn must work local lenders as the ipo is paired back to a domestic affair. the international banks will not have access to the ipo without aramco's permission. sydney, much of new south wales continues to choke on pollution from bushfires burning across the eastern and southern australia. conditions are so bad that it is city'sble to see the iconic bridge and concert hall. the world fire service as the smoke is mating from -- mainly coming from fires north of new south wales.
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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 am su keenan. this is bloomberg. thank you so much for that. our next guest has been raising capital throughout the year. of the us is the ceo number one travel up in southeast asia backed by expedia . you have 35 million users right now. good to have you with you -- good to have you with us. >> thank you for having me. such a great event. conservativealways in raising funds. elective in terms of working with investors who think long-term. able to help us grow our business experience.
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for fundraising, we will be doing the same, trying to find partners, strategy or not, able long-term andk help us grow new business together. haslinda: how close are you from closing the current underground? what kind of valuation are you looking at? >> you will know. haslinda: what are you looking at? where we at a stage are relatively stable in our core businesses but we also want to grow into lifestyle and financial services. the potential partners we are looking at will be able to help us grow this. haslinda: in terms of funding, what would you need to ensure you achieve these goals?
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known as being with regardore -- to our peers in southeast asia, we are conservative in terms of fundraising and i think in such an environment, i think our company can stand out even more. haslinda: what is your exit strategy? >> we like what we are doing today. we love building products and services for consumers. time, we willin consider an ipo when we think it is good to be public. it forces the company to be very good in terms of governance and that will increase the volume of the company. when can you ipo?
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>> two or three years from now. haslinda: in terms of your growth strategy, let's talk .bout your ipo will you do a dual listing? >> there have been conversations with the stock exchange. the government is very supportive of tech companies and they do want to see one of the local champions be listed in the local exchange. at the same time, we are also thinking about listing in one of a lotobal exchanges where of tech companies also list. haslinda: would that be the u.s.? >> probably. haslinda: the company has yet to be profitable. when can you expect to be? in terms of business model,
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we have had one of the more stable ones compared to other unicorns. we have a clear path to profitability. it has been like that since the beginning and it still is today. haslinda: you can be comfortable within the next three to five years? >> we certainly hope so. public much earlier. haslinda: technology is a priority. he wants to build a digital economy and is willing to spend a lot of money to build the infrastructure. how do you see capitalizing on that strategy? >> the support that the government has given to tech companies has been amazing. we have never seen anything like it. from transportation
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ministry all the way to tourism have been supportive of tech companies. not only supportive, but they engage us in helping them and we haver goals been very happy to do so. haslinda: how do you hope to capitalize? how do you see the opportunity that is brought to you from who are verynials clued in when it comes to tech? >> one of the key priorities for the government is to develop new tourism destinations. be dependingmight too much on bali. the government has been trying to add a lot more. key prioritiese
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that we can take advantage of. haslinda: you have 35 million active users. given the potential you just talked about, how can you grow your user base? on -- we very focused have been evolving with them and consumers are very mobile. they are on their mobile phone a lot. increasingly, they are looking to do more and more on the app. we have been following this trend as well. we added not only traditional travel categories but also categories such as movie booking, beauty and spa booking all the way to restaurant vouchers. haslinda: softbank is a backer. have you had any instruction or encouragement from softbank for
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you to tighten your belt or cut down on the kind of discounts the company has been giving? >> softbank is not an investor. they are investor in many other continents -- companies in the region. we are not one of them. we have been very happy with our investor space. set of a smaller investors that trust in the company and management and look at us in long-term weight. -- in a long-term way. haslinda: we have to leave it there. lots more to come from the new economy forum that is happening here in beijing. later today from the new economy forum, an interview with stephen
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king, economic advisor. ♪
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sinks someian stocks modest gains, investors are waiting for further details on the u.s.-china trade discussions. >> we should pursue common comprehensive cooperative and sustainable security and reject zero-sum game and cold war mentality. >> nobody wants to fight the country that has won the war and
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there is a new world order. >> only cooperation is the answer. of thesey that some strategies will be irreversible. we have not seen that. we continue to serve our customers in china. >> there is a good chance that we will see some progress in the trade discussions. i have been fortunate to speak with policymakers from both sides and i'm encouraged. what would a cold war do to assets? this is very, very big question to answer. >> indeed. i am sorry i am not henry
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kissinger. you would expect the usual suspects to come in and start moving around on the back of u.s. treasuries, japanese yen, s&p 500 index, the kind of assets that would be shifting around with the ebb and flow of the worsening of the situation between u.s. and china. on a longer-term basis, people are concerned about what it means for supply chains and we have already seen a lower level where in asia, countries like taiwan appear to be benefiting. it is hurting china a bit more. even india is benefiting with some shifting their business through india as well. up, thist is shaking
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could go on for some time. you could have a material impact on the way people address equity markets, even commodity markets. to say the repercussions of a statesriod of the united and china not being friendly to each other matters to business all across the world. we are seeing it already play out in asia. rishaad: isn't there a sense that they are not looking at a war of words as we had earlier this year? this is seen as a cease-fire, arguably, and that gives the markets the excuse -- the market participants to drive equities higher. >> cease-fire is good. people are getting used to that idea. we still have this deadline of december 15 hanging over everybody. people need some clarity as to whether or not united states still plans to go ahead and increase tariffs on china on
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that date. near the time, it could well be that donald trump finds a reason to delay that, pushing it back into next year and that would be a relief to financial markets. it is very unlikely they have priced in a scenario where those tariffs are going to be impacted because people are of the opinion that as negotiations continue, at least while the two sides are on the same paige to some extent, those tariffs can be pushed back further in the distance. it would be a shock to markets if new tariffs were imposed in the middle of december. --inning to see pricing people are getting a bit more nervous. this could go down to the 11th hour and we might not hear from the united states until very close to that deadline. markets don't like this kind of uncertainty. if they kick the can down the road, talks going to next year,
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markets can live with that and they can focus on other fundamentals. we are having to look a little bit later for the global economy. rishaad: the japanese bond market, various pmi's showing contraction, albeit better than they were the previous month. inflation and the sales tax hike barely move the needle. >> you have this big discussion going on in japan about more fiscal stimulus by mr. abe. he has his economy minister looking at ways to do a supplementary budget and that is a bigger factor for the japanese bond market. longer-term yields are being pushed up slightly and there is talk of a 50 year bond being issued by japan sometime as well. --can expect more talk about more talk in the next bank of
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japan meaning. the curb needs to steepen further. it is not that dramatic so far in absolute terms, the japanese market has only go down a little bit -- only gone down a little bit. that could play out the end of the year if the bank of japan stick to the policy they had in the last couple of weeks. fromad: joining us singapore. if you are a bloomberg subscriber, you can catch up with all the interviews with tv . check it out. this is bloomberg. ♪
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haslinda: welcome back.
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let's do a quick check of the latest business headlines. --pments of apples wireless will double to 60 million units. the surge has been driven by higher-than-expected demand. multiple suppliers are competing to manufacture the products. executives at softbank are looking for a way to reduce the billion we worked stock as part of a rescue package. it is unclear how softbank could renege on its agreement with any effort could result in legal action. begun the beginning of hundreds of layoffs after
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suffering losses. 2400 employees around the world will be let go, 20% of the workforce. the company scrapped a plant ipo scrubbedave timber -- a plant ipo in september. rishaad: time now for stock of the hour. this is an e-commerce discretionary company, trading yesterday to the downside and today, it has hit record highs. stage, up more than 10.2%. net income beating the highest analyst estimates. jeffries lifted its price target by 7.5%.
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they expect revenue from food delivery to rise 40% this year against last year. this is bloomberg. ♪
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haslinda: you are watching bloomberg markets: asia. live from the new economy forum in beijing. the outlook for the global economy, whether or not companies have the capacity to respond to a possible recession. pboc chief, former pboc chief said china has room to deal with it through monetary policy expansion and they have to work hand-in-hand with fiscal measures. the downbeat about europe, he , not limited flexibility so optimistic about europe. lots of discussion at the new
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economy forum. su: we will start with israeli prime minister benjamin netanyahu. he is to face trial for corruption. he has been charged with bribery, fraud and breach of trust in a move that could end his career. he is the first sitting israeli leader to be indicted. the justice ministry painted a picture of a politician who abused his position and sacrifice the integrity of his office. netanyahu says the investigation is tainted. to the u.k. election, the campaign has seen labor publishing the most radical manifesto from a major party in decades promising to raise tax revenues by 10% a year, fund for university education, and care for the elderly. jeremy corbyn attacked his
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critics. election is on december 12. >> if the bankers, billionaires, and the establishment thought we represented politics as usual, we could put off but nothing was going to change, they could not attack us so ferociously. they know we mean what we say. they know we will deliver our plans. which is why they want to stop us being elected. modi ise minister putting -- the country's biggest privatization drive in more than a decade. he is renewing attempts to revamp the crisis in the shadow banking sector. india is mired by a deepening slow down and waning consumption and modi wants to transform the economy.
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political jobs in sri lanka are held by two brothers with close ties to china. the new president has appointed his sibling, the former president, as prime minister. the current vote not scheduled until at least next march. the president has been announced -- tax cuts had helped reformers. 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 am su keenan. this is bloomberg. rishaad: let's take a look at what is going on market wise. what the major indices are doing. we are sitting a bit of a bounce taking place but it does seem
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the asia-pacific index will post a second week of declines. mired in confusion and any news on that is what people are desperately waiting for. the nikkei 225 snapping three days of decline, volumes down by a fifth. stocks are up in south korea. the city market, half a percent -- the sydney market half a percent higher. session, singapore trading marginally to the downside. the shadow banking industry, a lot of woes surrounding it, the risk of heavy write-offs. -- yields,t we have
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one basis point. move to where we are at the moment. turmoil in hong kong expected to continue as we head to district elections taking place on sunday. the local vote won't change the city's political system but many people are looking at it as a key referendum on the protests after the unrest in recent days and weeks turning rather violent . let's have a look at why they may well matter more than ever. >> at stake with 452 constituency members, the candidates are mainly split between those from pro establishment parties, which means pro china, and those from pro-democracy wants.
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there is also a lot of independents and many like to avoid the party tag. at the moment, the electoral map of hong kong looks heavily pro establishment. emboldened by months of antigovernment protest, the pro-democracy parties have been campaigning harder than ever, fielding a record number of candidates. it is not just local and symbolic influence that is at stake, whichever side wins the most district counselor, they get 10% of the seats on an exclusive committee who alexa hong kong chief executive. who elects the hong kong chief executive. the small slice would still be a big deal for pro-democracy parties who have long complained the committee is stacked with pro china loyalists. voter turnout and interest is
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not great it is growing with an increasing number of people registered to vote and the big student population has never been more politicized. the district council elections will matter more than ever. carrie lam saying the government wants to ensure the district elections go ahead she also said -- protesters putting a stop to the disruptions. -- we willneed to make an appeal to everyone to stop violence and threatening behavior. without a safe environment for voters, we cannot hold free and fair elections. rishaad: let's bring in our government reporter. these are becoming more significant. >> people have largely ignored these elections in the past, the powers these counselors wield,
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local committees, local events, they do not matter too much. the significance has increased because of the 5.5 months of protests we have seen in recent weeks, especially with the violence increasing. the pro-democracy lawmakers are hoping they can ride the surge , campaigning for democracy hoping they can turn that into electoral gains. rishaad: what are the expectations? >> at the moment, the district councils have been dominant it by the pro establishment, pro-government, pro china side. 68% of the seats are held by -- people belonging to that camp. we are expecting pretty large against for the pro-democracy campaigners. it is not clear, there is not the sophisticated polling you would see in a national election
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so we do not have a clear sense of exactly how much they will win. we are expecting some pretty big gains and we will be figuring that out late sunday, early monday as result start to come in. rishaad: if we had a surgeon taken,ocracy seats being -- if we had a surge on pro-democracy seats being taken -- >> it would not affect the broader street battles or the broader big questions about hong kong's democracy, whether or not we will have universal suffrage, independent committee to look into the unrest. it would change, if they make significant gains, well over half, that allows them to influence the shape of the committee that chooses the chief executive. -- it doesgh members
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give them more leverage. really does give the pro-democracy camp a little bit more say. rishaad: thank you very much. sunday, of course. let's get you back to beijing in the new economy forum taking place. the unrest in hong kong also dominating the discussion at the new economy forum. earlier, eurasia group president went down the possible impact. is an annoyance for them. certainly, the chinese do not want to be in this situation where they are rolling tanks through hong kong. they understand the implications
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that would have. legislation we are talking about now is an embarrassment for the chinese but will not have meaningful economic implications. calm.da: lots more to later today, an interview with hsbc senior economic advisor. he will be joining us. this is bloomberg. ♪
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rishaad: this is bloomberg markets. tesla saying it will start delivering a made in china model in january.
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elon musk telling bloomberg he hopes customers will receive their car by spring festival. bloomberg co-founder says the selling spree has reached $1.5 billion. extends sales. the may follow because filing might offload his entire stake. boeing has reached settlements in more than 60 wrongful death cases. all 189 people on board were killed when the 737 came down in the java see. the lawsuits have been working
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their way through federal courts in chicago. , ischinese contract maker said to have raised over 600 million u.s. dollars after pricing its hong kong listing at the top and of the marketed range. -- the hong kong listing come in less than a year . 600%s risen by a whopping since it came to market back in january. sachs hoping for progress in these trade talks. david solomon speaking to us at the new economy forum in beijing.
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whene of the big issues you think about economic growth in the medium and long-term is the u.s.-china finding a way to coexist more proactively economically. there is a good chance that we will see some progress in the trade discussions. i have been fortunate to speak with policymakers on both sides and i'm encouraged. i think we can expect the progress to be in stages but i am hopeful we will see some progress and it is important, the chinese realize it is important for them and the u.s. realizes it is important for the u.s. and canada -- for the u.s. and economic growth around the world. will lead to a phase two? >> i think we have to hope that over time, in world were both of these economies are super important to global growth, that we can find a way to make
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progress on all these issues. certainly, a step in the positive direction is a step in a positive direction. half glass -- ima glass full kind of a guy. haslinda: talk to me about hong kong. celebratingeen around the world this year, the 150th anniversary of goldman sachs. we have been having events and cities to commemorate that with our clients. i spent some time in hong kong and it is a very complex multilayered situation and we are watching it closely. i was glad to be in hong kong and spend some time with our team. we have over 2000 people on the ground. when the routine people experience in a city like that is directed, -- is disrupted, it
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is tense. you can clearly see the impact on the economy. we are watching this very closely and hoping for resolution. >> what are your clients in hong kong asking of you? >> i do not see any change in the behavior of clients that are significant financial players in hong kong. hong kong has always been very important as a financial sector across the asia-pacific region. china recognizes the importance of that. the rest of the world recognizes the importance of that. it will be important that we find a resolution in the near term. >> can actually lose its status? >> i do not see that is likely. i do not see evidence of that. the situation needs to be resolved. the people who live there are affected by what is going on. rishaad: that was david solomon
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speaking exclusively to us. let's get straight to mumbai. take us through what to expect from the session today. we have a bit of resistance. we have the psychologically important 12,000 level, right? >> absolutely. we are last two days, trading in the last two or three sessions. traders will be keenly watching for the downside. , trading in the red. talking about the broader
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the 500 index has been trading with moderate cuts. rishaad: tell me about some of the stocks you are watching out for. whole china banking is playing on the market. >> absolutely. a couple of stocks that have been in focused -- it was up 12% yesterday. data, investors bought 15.7% stake. hsbc and fidelity. the stock has seen a bit of a cool off in today's trade. hsbc has increased the target price to 1700.
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betting on companies selling. undertaking,or came out with an ipo last year. that is the reason why the stock has started on a negative note. it is down 2.5%. rishaad: thank you. more to come on bloomberg, we will be back at the new economy forum taking place in beijing. exclusive voices coming your way. this is bloomberg. ♪
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haslinda: welcome back.
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vice-chairman of pimco says the firm is excited to invest in china's bond market. he spoke to us about opportunities on the mainland, how investors are navigating relations with the u.s. >> what u.s. investors are looking at is volatility in terms of confidence. as long as the trade talks continue unresolved, the chief executives of u.s. companies will be reluctant to make definitive capital expenditure decisions. that is something that could have an impact on earnings going forward. the u.s. consumer, though, continues to be very much in spend spend spend mode. we are in period volatility. one of the things we are focusing on is the economy is
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slowing down. we do not really see a recession in the next 12 months. anything that remotely represents any type of air pocket or disruption is going to cause a short-term challenge to confidence. the black swan of 2019 has been what has happened in hong kong. no one really predicted that. >> when you look at something like hong kong and the lack of options on the table for both sides, does that make you want to sidestep that? >> hong kong is a very stable market. if you look at the capital markets over this period of volatility, the hong kong currency is pegged to the dollar. the hong kong stock exchange is one of the most professionally transparent and regulated in the world. very much in line with the best
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of the new york stock exchange and the london stock exchange. >> you are not hearing concerned about the money markets in hong kong? cash demand is up. >> one of the things we are all excited about is 2020, china is going to open up their financial services market to international control. i am hoping we can use this to rebalance the discussions on the u.s.-china relationship. it has been very focused on technology but when you look at financial services, the chinese have been very open-minded about ,ringing financial institutions international financial institutions, into their market. they want international expertise and experience in that market.
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2020 is important. pimco is very excited about the chinese market because it is a $12 trillion bond market, a bigger bond market than japan. csrc abouting to the our business strategy. vice-chairman speaking bloomberg. to an interview with hsbc senior economic advisor. don't miss that. rishaad: absolutely. forum takingmy place in beijing. we are getting a bit of optimism. we are looking for anything that will help to lift things higher. we did start with a bit of a bump but that bump is perhaps
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reduced somewhat. the nikkei 225, a third of a percent down. seeing -- like we are posting a second week of declines. arguments are being made that investors may well have decided the u.s. and china have talked themselves into a standstill. some suggested it could be a cease-fire. people are suggesting that is preferable to the open hostility we had earlier this year, which was related to the trade dialogue ending in may. some people suggest there will be a deal and it will be next year and these december 15 tariffs, which are hanging over these talks, are likely to be
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pushed back into next year as well. that is the position we are in as well -- in right now. have a jolly good weekend. best of bloomberg markets middle east is next. ♪
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