Skip to main content

tv   Bloomberg Markets Asia  Bloomberg  December 4, 2019 10:00pm-11:00pm EST

10:00 pm
sagging economy. this is bloomberg markets. >> asian stocks in the money after today's of losses tracking gains in the u.s. and europe. a phase one between the u.s. and china will be struck before the deadline that is september 15. let's take a look at this one here. we had the and next currently up by 4/10 of 1%. the nikkei 225 also in the green , up by 7/10 of 1%, boosted by and of0 billion package
10:01 pm
course, $240 billion is enough according to prime minister robert -- prime minister abe. let's take a look at where the gdb czar at this time. saying it is not enough to lift inflation to 2%. at where the kiwi is right now, rising to a four-month high to the dollar. >> let's have a look at what is going on with the indian market, all about reserve bank of india and they are expecting another cut. if we do get it, it will be the six straight cut. -- somewheresome
10:02 pm
between 25 and 50 basis points. some gains inee the indian market, looking at the rupee, a little pressure there at the moment. it is pretty much stable and ahead of that decision by the reserve bank of india, they tried to address sluggish growth , showingnomy expanding the weak us of growth we have seen since the beginning of 2013. to a central bank governors elsewhere, we are talking about kuroda and the first word news. with theng in japan
10:03 pm
prime minister has announced a massive stimulus package, dealing with a slump in exports. package is worth $239 billion, roughly half of the stimulus measure. they say it will boost growth by ..4 percentage points [inaudible] >> i think that boj should consider the impact of these policies. for surprise call producers. it would extend the current limit for your. the abrupt u-turn has left the
10:04 pm
oil market wondering what will emerge. did banks in new zealand are [no audio] blow to austrian banks which already have major financial challenges back home. the indian government said to be weighing the easing of lending roles and allowing wider access to funds. that is five levels below what is permissive under current lending rules. >> global news 24 hours a day, powered by more than 2700 journalists and analysts in over this istries. bloomberg.
10:05 pm
sources telling bloomberg that china and the united states moving closer to an initial trade deal despite recent harsh rhetoric. we don't know anything factual. we have certain date which are set, but tell us what we are actually hearing. ,> this is the tide moving in one day of progress and then another day a setback. we have the comments from donald trump saying before in a hurry to get this deal done. it could happen after next year's election, so that poured some cold water on the heat that was gaining towards the deal because we have a fast approaching stock deadline december 15 when the increased tariffs are due to prevent. the key sticking point is which of the existing tariffs will be rolled back and that is where
10:06 pm
the sources are telling bloomberg are getting closer to identify those as part of this phase one deal. also, how to guarantee and verify china's purchases for agriculture products. that is where we stand right now. it is anyone's guess, but sources are saying it could likely happen by the soft deadline december 15. >> how much will the recent bipartisan u.s. bill supporting [indiscernible] of trade talks. >> also, the bill signed by trump supporting the hong kong protest movement. keep in mind, china wants this deal as well and they like to separate economic issues from political issues and what is happening in hong kong and also
10:07 pm
perhaps they are separating those as well. china has threatened retaliation and they have taken unspecified action where they say they will human rights watch and others. they have also banned or suspended u.s. warship for visits to hong kong and there is speculation they could block u.s. senators or congressmen in general from going to china. .> thank you very much one-dayalf-full and glass have empty. something is going on.
10:08 pm
tell us what the endgame is and are we in the endgame? there are many other in games i'm sure. >> you have to strike a balance between what you see and conditions, monetary easing and the trade tensions and who will win at the end. isbelieve the most impactful the policy easing we will have and an economy on the upside that could lead to know recession. of course, the trade recession provides volatility, but in the end, we believe it should extend the on 2020. >> we start off with this r.e.d.d. which is we have come up so fast so fast
10:09 pm
this year, tell me more and go to the others. >> the first one, reflation is , although theee markets have been performing very well, the economic data we august,ing, but since september, we have seen it stabilizing and they are sticking up higher and we believe on the back of a lot of monetary easing being announced in japan and rumors that germany could also do more on the distal side, so you have policymakers with the economy down and that is with core inflation, so then thehave rates going up, dollar starting to turn since august and you have gold that is also turning up since august, so
10:10 pm
we believe we are moving some changes in these markets. >> there's reason for caution? you take a look at china deleveraging all cost. >> you are right. that is why we are not getting ahead of ourselves in terms of predictions. we believe we are aborting a recession, but as you said, china and the u.s. with their fiscal stimulus will not be as big in this, so that is why the concern we see in trade and the election going into next year remain valued and they can create volatility. we still believe we will get lower inflation in the early part of 2020, but is it
10:11 pm
sustainable is the question. thaten you look at process -- cross asset pricing, how much of the trade war has artie been priced in? >> everyday can change the direction. what we are looking on top of prices, we can look as though the companies linked to china listed in the u.s. and you can see they are also moving in the same way as the currency. what we are also looking at is the approval rating from president trump in today, it is about 43% and i'm thinking you would me -- would need a couple percentage points more to get reelected next year.
10:12 pm
this is very highly correlated with asset prices and looking at the loopholes from president trump is also something to look at. [indiscernible] what is that telling us and looking ahead at the bond markets in 2020? >> for the bond markets, i think they are pretty rich. if you look at 1.7 or negative yield markets, if the store they just explained is going on, there is duration risk. duration, for that means is we are looking to reduce exposure moving on the credit curve and looking for at deal debt which
10:13 pm
can provide a proxy, but not thatthe same [indiscernible] could deliver. >> what is a telling us? [indiscernible] growth is also quite modest, so we would agree with all of that, although we believe 1.76 is still on the low end. tight, we will have more in a moment. still ahead, bank of india set to cut rates for the sixth time this year. the factors that will influence the decision. [indiscernible]
10:14 pm
give themselves a boost of a growth. this is bloomberg.
10:15 pm
10:16 pm
>> you are watching bloomberg markets: asia stop -- asia. >> shinzo abe announcing a massive stimulus package dealing ofh exports, a string natural disasters and sales tax hike. one economist we spoke to said the numbers make not mad up -- economyadd up for the to hold. pr stunt.
10:17 pm
back then, a small part was spending, so this is not any different. us, head ofh multi-asset solutions asia-pacific. it is highly anticipated, the question is whether it is off. debates something we can . i think the intent is there to use.nize the particular there is support going after is doing.oj arrows thatof the
10:18 pm
2012, thenced in women in the workforce is now higher than in the u.s.. lowee the labor incentivizing more stability, so all these things are moving in the right direction. the stimulus, we can question the amount, but in the end, adding with the boj is doing and also bearing fruit right now. >> if it is a move in the right direction, why has there been so little reaction in the market. investors are saying there is limited upside potential. on apan has been already good run for the last two months, three months, but it
10:19 pm
came from very low valuation, so it is difficult to expand. earnings are also something we are looking at. they are not too optimistic given that they have been a very weak global trade environment. there is definitely a potential for earnings to recover as well, so i would not say there is limited upside. it is like every market in the world. japan, more upside than other markets. >> fundamentally, the simas package is going to be part of reflation, another attempt to reflate the economy.
10:20 pm
that is perhaps the basis of your thesis. >> it started with the help of central banks which were a weaker amount and that definitely triggered be reflation activity. what you need to maintain that .s the fiscal stimulus it is not yet a given, but we don't need fiscal to get the trade started, but we would need the fiscal to get it to last longer. >> very quickly, one asset class or even one specific assets that you think is going to be on the watch next year. >> in terms of positive return?
10:21 pm
>> yes. >> i would say emerging-market debt would be something. with [indiscernible] because we see the amount of default remains pretty low and is quite low as well, so in terms of rich return, that is a good outcome. >> thank you very much. the bloomberg live asset survey is open and let me just see where you think nine different asset classes and up. have a look at it. you can get your forecast in their. there you have it, you are watching bloomberg. ♪
10:22 pm
10:23 pm
10:24 pm
>> let's do a quick check of the latest business flash headlines. confirming the sale at the biggest ever. rials ashares at 32 piece. saudi arabia is telling one have percent and would raise more than $25 billion. in trouble it told usa the regulators that another 1.4 million vehicles need to be repaired linked to the death of a bmw driver.
10:25 pm
it is time for the stock of the hour. you are looking at qualcomm say make. moment.out 12.5% at the it is of something like 18% in the last two days and all down to a potential crisis. utilization already full as other demand drivers kick in. a bit of a squeeze going on. games -- gainss means the stock is probably [indiscernible] year to date and also the biggest gains since february.
10:26 pm
you have the likes of vanguard climbing, microelectronics last time at 15 multi-, so that is what we have. utilization already at full levels. it is also one of the most traded stocks on the market here . we have 20.9 million shares at and also 700% .ncrease in the normal volume that was the stock of the hour, extending their rally in hong kong and taiwan. china lunchowards a break, this is the position we
10:27 pm
have, up 1.5%. investment community looking at the glass being half full, six cents of 1% higher. this is bloomberg. ♪
10:28 pm
beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond.
10:29 pm
haslinda: you are looking at life pictures -- life pictures out of the lion city. we are in the middle of the trading day 28 degrees celsius. 31 degrees usually. we have the bloomberg news survey released about 40 minutes ago suggesting that singapore's economy would expand half a percent. so much for that talk about a possible recession in the lion city. headlinesfirst word
10:30 pm
with rosalind chin. saide u.s. and china are to be moving closer to a trade deal despite heightened tensions over hong kong. the two sides are nearing an agreement on the amount of tariffs that would be rolled back. president trump austria's comments -- president trump's comments about waiting till the election. democratic president will candidate elizabeth warren said the u.s. economy is to geared toward big corporations and rich people. the so-called wealth tax is a solution to helping this country invest in the middle class. >> i believe in capitalism but markets without rules are theft. part of those rules are that everybody supposed to pay a fair
10:31 pm
share on taxes so we can reinvested an opportunity for all of our kids. that is what a to send wealth tax is about for me. -- two sent while tax is about for me. >> subsidies for utility bills as well as waivers on corporate property tax breaks. it amounts to more than 3 billion u.s. dollars. the decision to step back from boostg alphabet brought a -- a retirement boost. dollars eachllion to their net worth. alphabet through special closing shares.
10:32 pm
global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. let's get to the markets. let's have a look at what is going on with the major indices. much of the last two days of declines. is a phase one u.s.-china deal getting closer. stocks did bounceback on those reports. that is currently where we find ourselves. we do have quite of -- quite a forensic -- frenzied week ahead of us. payroll is this friday and british elections will come a week today as well. town,ia, the big game in the reserve bank of indian expected to decrease the cost of
10:33 pm
borrowing by 25 basis points. the rupee is pretty much unchanged. pricing and several interest-rate -- pricing in several interest-rate cuts part moving from india and going to japan where the prime minister has announced a massive stimulus package to boost growth in the economy dealing with natural disasters and the fallout from the sales tax hike. it will boost real growth by about 1.4%. >> further deepened the policy, i think the boj should consider
10:34 pm
these policies. haslinda: let's head to japan. the event is well underway in tokyo. we are joined by one of the key speakers. good to have you with us. $240 billion stimulus package announced in japan. your initial reaction? institution said maybe a boost of 1% for this year and next year. a slight boost. boost to thelight economy? >> gdp. course, japan's economy reliant on the u.s.-china trade war as well. how is that impacting in terms of growth in japan and investor sentiment?
10:35 pm
any discussion between the u.s. and china is a positive. on the other hand, despite what the china-u.s. relation is, the relationship between china and japan is going as normal. both countries are discussing what they can do together for the stability and economic growth of both countries in the region as well. but we aretters talking together as well. rishaad: i just want to get your develop yourw you own business here as well. you have been at the event and the thing is, i am trying to get a handle on you want to get into china, how are you going to do it? you are already there but do you go there on your own? license witho
10:36 pm
another joint partner? is it on your own? ofwe are in the process filing an application. venture withnt asset management company in the city of beijing. hopefully, by this time next year, we will have an operation up and running. what willxactly, but that operation be all about? , orstment banking in china an access route for japanese clients who want to buy chinese equities and other asset classes? >> the most important elements of our joint venture will be investment banking. cross-border m&a. we are mostly concentrating on the middle to small caps. that would be our concentration. not just with japan but with europe and the u.s.
10:37 pm
haslinda: you talk about the opportunities. how will it contribute to your overall business? think, just because of the sheer size of china and the companies and the deregulation going on, and also because domestically, growth compared to china is very slow, it will contribute a lot in terms of the businesses. as m&a a franchise companies that will provide platforms for our business going forward. of your: as part contribution to the year ahead that has been organized in
10:38 pm
tokyo, you were talking about your plans. can you shed light of the potential of investments going forward? investment compared to europe and the u.s. has been small. the growth is the highest. i believe that what we are seeing this year and next year, the population, not just for individual clients but all of the institutional clients is looking at investment opportunities. growth will be a phenomenon in japan. -- sorry?or rishaad: i was just going to say -- that is a very low base. nascent form of
10:39 pm
investing, you could argue. tell me where the people are going to be concentrating. we have seen some progress. what about the others? environment, the number of signatories globally, japan has the highest number. it just started this year's of companies have to step up and write their reports. in the process, there will be more opportunities for them to issue more global bonds. green bonds. we are experiencing a lot of global climate change with the typhoon. that hits close to the heart. the problem we are facing is example, a- for woman in the workforce.
10:40 pm
we are lagging behind europe and the u.s. that is where the government is stepping up and i think we are making quite progress but we still have yet to catch up. work onwe still need to the s part. rishaad: let's talk about getting women into positions, etc., and it is nice to see you as the deputy president. we have this fiscal stimulus package today, but do you want them to be doing more with that third arrow, i.e. reform? they have made some moves but people have been arguing on this program that they have not done enough incentivizing women to get back into work when they have had a family and the like with childcare, and on top of demographic deficit by
10:41 pm
making it easier to immigrate to japan. two it is important to look at women from a point of diversity and not just a person working. that is where we are hitting a wall. the reason why japan needs women is because we need more people to work and that will not be sustainable. sustainability and diversification of the workforce is important. that is number one. number two, we need diversity in our society to become a sustainable society with growth. that, we have not embraced as much as we should. lies where the issues are right now in japan. you for insights today. if you are a bloomberg's subscriber, you can catch up with all of our interviews by
10:42 pm
using our interactive function, that is tv . you can also join the conversation with instant messages. check it out, tv . this is bloomberg. ♪
10:43 pm
10:44 pm
rishaad: this is bloomberg markets. the reserve bank of india will deliver its six straight interest cut as it doggedly focuses on doing something about economic growth, which has been sluggish. thank you for joining us. cut all but done, is it not? the question is the magnitude, i am thinking. >> that is right. india's growth is at a six year low.
10:45 pm
exports are falling. very limited fiscal space to take anymore measures. debate --e the question is how much. 50nomist are predicting basis points. most believe a 25 basis point reduction. haslinda: thank you for that. at 11:45.ion is due
10:46 pm
a last hour recovery led to positive growth. on the positive side after the recovery seen yesterday and we are inching toward that level of 2100. work its will be taking cues from monetary policy but we had weak gdp data. , all of these factors. it is a positive start across the board. rishaad: the entertainment enterprise, the biggest gain or.
10:47 pm
what is a stock you are tracking at the open? continue to beks in focus for the last two weeks. finally, yesterday, the board has approved fundraising, which would be a mix of equity. it could lead to an equity dilution. on back ofokerages this news, they have maintained their bullish stance. they have hiked prices by as much as 34%. they have raised the price to 2000 rupees for the stock.
10:48 pm
disinvestmentoved by a most 8.2%. pleasure,lways a thank you very much. our next guest expecting a 25 basis point cut. thank you so much for joining us. they go 25, they could go 50. policys no monetary taking place. that is the problem, isn't it? perhaps they need to be braver and go further down the line. the banks are dealing with shadow banking fallout. what are your thoughts? >> you are right. the transmission has been a problem in india.
10:49 pm
look at the weighted average lending rate, it has fallen 5-10 basis point. what we feel is that now the , thet growth has slowed deposit ratio has come down. usually, at this point in the cycle, you do see transmissions picking up. we expect it to improve from current levels. rishaad: more needs to be done to the fiscal side but with very little fiscal wiggle room. borrowing from peter to pay paul. what more can the government do to support the r.b.i.? >> there is very little fiscal room left after the corporate
10:50 pm
tax cut. deficit of about the government needs to support growth. , the gdpter numbers growth would be about 3.4% against 4.5%. very little room to cut expenditures at this point. limited andal boost fy 20. -- in fy 20. there are three months left for year to divestment target is about a
10:51 pm
trillion rupees. atlinda: when you look india's gdp, it is going at the slowest pace in 17 years. is it conceivable, india may need qe and if qe should be implemented, what would it look like? what form should take? >> if you look at banking system surplusy, a significant of two to 3 trillion rupees on a daily basis. extending some support to the shadow banking. r.b.i. widened the liquidity line. even at this time, we can look at something of that sort. so far, it has not been inclined. or qe-like any qe
10:52 pm
, liquidity is already in surplus. hope?da: any glimmer of are you encouraged? numbers on rebound.ring show some probably, at this point, we are seeing growth stabilizing if not improving. i think it is too early to say we are completely on recovery mode. haslinda: too early to say? thank you so much for joining us. up ahead, opec ministers meet in vienna and the debate continues about strategies. we will get you the latest. this is bloomberg. ♪
10:53 pm
10:54 pm
10:55 pm
additional 400,000. believe opec has the capacity. low demand and global supply. and globals weak supply continues to grow, we will have low price. some of the rhetoric swirling around the opec meeting taking place in vienna. what is the mood like going into vienna? seems to be an appetite for further cuts. >> the saudi's are shouldering
10:56 pm
much more of the burden than the other countries. compliance is one of the issues. the gulf arab nations of opec have reached a consensus to prolong cuts. talking thatister he was the champion of deeper cuts and has walked back that talk. issue and is the big something that has been leading up to the meaning, something the saudi's have been hammering and talking about. the rhetoric behind the scenes is that the saudi's will lead the way on deeper cuts as long as other countries keep to their compliance. if not, they might produce more. compliance is key. what does that mean for the market?
10:57 pm
, there is ament sentiment going around that if members, which include iraq, nigeria, russia, it could take 400,000barrels -- barrels a day of deeper cuts. if the country is more compliant, you are reaching those deeper cuts anyway. we have better clarity tonight when more of the ministers come in. minister did not give too much away yesterday. the uae all minister said he would not give any indication of what proposals would be discussed. we have russia coming in today and he could have a little bit more to say on that. thank you so much for that. let's take a quick look of where the markets are right now. asian stocks in the money after
10:58 pm
two days of losses. that is it for bloomberg markets: asia. bloomberg daybreak middle east is next. ♪
10:59 pm
11:00 pm
♪ >> i'm taylor riggs in san francisco. this is bloomberg technology. coming up, a dramatic exit. expedia is losing its ceo and cfo. this follows executives at google. the tech sector is saying a lot of goodbyes. national security risk, a u.s.


info Stream Only

Uploaded by TV Archive on