tv Bloomberg Markets Asia Bloomberg August 3, 2021 10:00pm-11:00pm EDT
sources say the uk is considering blocking the takeover of arms by nvidia over security concerns and may cause softbank to cash in on alibaba. david: speaking of alibaba, a weaker open. it has been gyrating for the first 30 minutes. . we have quite seen a consistent direction with chinese tech. yvonne: there was a revenue miss in the first time in three years in alibaba. it shows the told that this crackdown has had on the company. rishaad: the forget the massive fine. it is a one-off, but certainly something that affected. david: now they can focus on the longer-term part of the business. there is the increase in headcount. good landmarks as far as confidence. as far as what we are seeing -- in terms of what we're seeing in markets, tricky.
price, we are fine, which is perhaps where we are getting paid -- for tech stocks right now. but we are also seeing a mixed picture when it comes to some of your more traditional measures of risk appetite, for example. might have to do with the fact that new zealand is skewing the bond market today with a big drop in unemployment rate. the broader macro story, the fed heading one way and we are thinking that rba would go an opposite way. that rba is talking about tapering. and the rbnz, it seems, when you look at the tapering and the pricing of the kiwi dollar. it might even be priced in at this point in time. but we're still talking tech, quite literally a developing story when it comes to the narrative and the stuff we are actually hearing out of chinese media when it comes to gaming and tech, in fact, publishing
the message, if you will. rishaad: we will get back to that just seeing -- let's look at how the tech stocks are doing at the moment. csi up. chinese equities to the upside. hang seng bouncing back after its decline. tencent, 3.5% up. happy barbara -- alibaba is healthier, but alibaba itself is down a fraction. a revenue miss and an overall maze -- miss as well. we were talking yesterday about video gaming being "spiritual opium." that is gone now. yvonne: electronic drugs. you start to see the tone from state media. they are walking back the harshness when it comes to how they described the gaming industry. this is what we have been coming through this morning and seeing -- it is immoral to blame
schools, given companies or parents, alone for children who spend long hours online playing games. a collective effort to tackle this issue they are seeing in the society, that is what we have been hearing about today. david: now do you take advantage of this lull, this opening in the cloud? just be ready for a lot of vol. when you look at actual volatility in msci china, keep in mind, you had the revenue miss, and tencent is the other one. alibaba and tencent are 25% of this index. different stories within that. 57 is the level of vol. the last eight days or so, five of those days, we have seen a swing of 6% in a stock that is massive. it takes a lot to movie stock like that and -- to move a stock like that. that is what you should be prepared for if you want to buy this dip.
rishaad: take a look at the csa 200 versus the h-shares index in hong kong only shares in china that are moving. investors seeking haven doing policy prevents. there is a sense that it could potentially widen the spread. yvonne: yes, notes from jeffries saying that it's related stocks is where you will see the boom, given the campaign we have seen their. we have seen a local domestic brands looking really good today. here is a lot of commentary about what is going on. here is what our guests have been saying. >> that has been some concern about whether pessimism is at its end in china with all of these crackdowns from revelatory inspectors, we don't think so. >> balanc social response ability international interest.
we are in for this structural change. >> what investors don't like his uncertainty. >> i don't think it is safe to assume that westerners can trust putting money in chinese companies. >> i believe they are not investable. yvonne: we have been seeing this crackdown taking it: alibaba which posted its first earnings miss -- taking a toll on alibaba which, posted its first earnings miss. let's bring in our guest to talk us through what we have been seeing. john, i want to bring in the change in narrative that we heard from state media in the last 24 hours when it comes to the gaming sector. what canoe -- can you glean from that? >> there is officially a softer tone. no talk of opium and electronic drugs today. but we have a lot more state
media, most notably, people's daily, coming out and talking about the dangers of video gaming. the tone is softer, but you have more state media, especially people's daily, which is the official paper of the communist party. that means that it is much more likely that there is some additional regulation coming down the hype for the industry. i think the softer tone suggests how extreme the policy will be will not be as extreme as people were fearing yesterday. rishaad: also, don't forget alibaba, having a look at those numbers, what is the general view? john: obviously the regulatory environment is weighing on all tech, weighing on alibaba with their sales miss. it was interesting during the conference call when the ceo talked about how it would be good for alibaba if there was
more collaboration with other companies. in the past, most notably tencent, really went to great lengths to keep their different services separated, to be able to have a competitive advantage against one another. now the ceo of alibaba is talking about how it would be good for alibaba if there was more collaboration. that's a very interesting change. rishaad: jean- --joh liu, thank you. you can watch more of the interview on the bloomberg technology channel. david: the concept of big in terms of market cap disruption, we can see it. $1 trillion wiped out in terms of the value of chinese and hong kong equity markets combined for the month of july. we were just talking about the alibaba story, now trading at the cheapest levels. we are now trading at 18x.
trading like a cyclical or value stock. our next guest is with us, fro. hear that the sentiment has driven evaluations to in many cases, not just multiyear, but unprecedented levels, is it time to take advantage, or is it wise to wait this out a little bit further? >> i would suggest just hanging around for a little while. i don't think if you hang back a little longer you will necessarily leaves too much opportunity on the table. there is such uncertainty know about the policy direction that you are best served to try to figure it out before you make a move. rishaad: give us a sense of as a family office and seattle office, what is the biggest, the
most common question you are opposed? johan: at the moment, certainly china taking over everything else. concerns about inflation, the reopening trade and how covid is playing a role. right now the questions are all around china. i think covid still plays a role, but we haven't heard that much about the shape of the u.s. curve and what the fed is going to do next, it has taken a backseat for the last little while. yvonne: we are seeing people try to find a hedge for all of this right now, whether it is focusing on asia or the sporting industry and more of these market -- this market commentary that perhaps you should look at more areas like that to find a bit of shelter. how are you viewing this environment? where are you actually working your money? johan: keep in mind, we take a
global view. we have no particular need to be invested in chinese assets, per se. earlier investors are on a slightly different position. if you run on asia or chinese mandates, you have to think about all their hedges. i think, we haven't spoken too much about chinese fixed income. there seems to be a degree of safety, the bond high-yield sectors. probably if you have to have exposure to the region, you have to look at china as somewhere where you have to have money. look at the domestic plays, particularly at the sectors exposed to domestic consumption, as opposed to the new were tech. that seems to be where the aim is going. that is a broad statement. i think than [indiscernible]
david: you honey used -- johanne joost will be staying with us. if you look at domestic apparel stocks, apparel makers are flying, 7% to 10% today. we have seen similar moves in the past week. keep your eye on this as far as policy preference and preverbal policy environment. rishaad: yes, a big push for the chinese population to get exercising. the largest political party in malaysia's ruling coalition is pulling its support for the government overpressure on the prime minister to resign. this comes on the heels of the resignation of the country's energy minister. his supporters have been key to maintaining the maturity there. they knew moratorium on the eviction of renters in the u.s. issued by the cdc. it will remain in effect until
october 3. the breaded administration intense criticism from within its own party for not acting sooner to prevent the vulnerable from losing their homes. the move could help keep millions in their homes amid a virus resurgence. president biden with other top democrats are calling on new york governor andrew cuomo to resign after a new york state reports finds he harassed multiple women and violated federal and state laws. the attorney general, letitia james, saying that andrew cuomo and his staff retaliated against at least one former employee for coming forward. the governor denies the accusations. that is a look at your first word news. yvonne: coming up, at outbreak of the delta variant could deal a significant blow to china's recovery process and force the pboc interaction. we will discuss market implications with johan jooste , next. this is bloomberg. ♪
david: welcome back. a bunch of pmi numbers out yesterday from the asia-pacific. a couple more coming out from hong kong. watch out for singapore and also india. there is certainly a narrative. the graph is slightly lower of peak sequential growth. it is not peak. that is coming through in the form of oil cuts, cutting through the 50 day moving average in texas. replace that with brent, also below the key moving average. this is a story we have been tracking all week. real yields, nominal yields and what they are telling us about the outlook. yvonne: you are seeing that with the china data.
we had a pretty enticing services number today, but overall, with this delta variant and what we are seeing with this biggest outbreak in china since wuhan, essentially, that raises a lot of questions about the outlook. morgan stanley downgrading their gdp forecast for the third quarter, they are thinking 5.1%. full-year, 8.2% from 8.9%. perhaps we will see more of this trickling through. rishaad: absolutely, looking at what it means for your investment decisions as well. let's get back to johan jooste, global cio office here. thanks for sticking around. this delta variant is presenting a third or fourth wave. far more transmissible than the previous covid-19 variant. does this shape the way that you invest? johan: the virus on its own does not, but the way that it reacts
in any given economy simply does. what you can see so far in the data is where the vaccination rates are going in any particular country, that is making a big difference to not the transmissibility, but certainly the infection rates. there is a broad difference between emerging markets and developed markets. emerging markets with some exceptions, seem to be lagging. it look like it will be a bigger deal for em than it will be for dm, although i say that with a caveat. it might still be early days. yvonne: you raise a good point vaccination rates are perhaps now the key metric here and how you make these type of investment decisions particularly when it comes to fx i would presume because we are
seeing flows into the dollar, given the fact that the u.s. is relatively better when it comes to how they are managing delta. does that essentially mean the greenback has further to run and overall hurt em? johan: that is the risk in the near term. the u.s. assets have been performing well. the current earnings outlook, you see that u.s. treasuries performed against expectations. certainly for the short-term, that might continue to undermine equity performance and sentiment in em. rishaad: do you think that the fed is more concerned about implementing getting people back to work particularly after these checks run out and stop lending on people's doorsteps or are they more concerned about inflation, in your view? johan: at the moment it is quite clear they are looking more towards the employment numbers than inflation, that is the way
we are reading the numbers at the moment. they are not going to move unless there is a huge surprise, which does not look like it is manageable. the labor market, i think, is the fed's issue at the moment. i think there is more than enough scope for the labor market to move a bit before the federal get anywhere near trigger. david:. david: as far as the rate hikes is concerned current pricing is about 21 months from now and the reality is rates are going to be low until that time. yes, we will taper, but that will go up. it is not even talking about the ecb and everyone else that is still buying bonds. . we can talk about delta and what have you, but is that enough, the other side of the argument that there is just a lot of money? does that trump everything else. just put your money in an index fund, why not? johan: it trump's for a while,
but you have to be careful. what you are seeing at the margin, companies with really strong earnings don't move as much as they might have done before. the market has priced in a lot of good news. more needs to happen to push the market higher. you can only push valuations that far. from the point of view of -- just put it in an index fund -- i would be in stocks now or for little while longer relative to fixed income, that is for sure. yvonne: you had used, thank you so much, joining us from global cio office. you can find more in-depth analysis on bloomberg radio broadcasting live from our studio here in hong kong and singapore. you can listen via the app, bloomberg radio plus or bloombergradio.com. this is bloomberg. ♪
two of singapore's largest headlands are increasing dividend payouts after profits beat estimates. one of them said it will pay an interim dividend of $.25 a share after reporting a 59% jump in net income. united overseas bank plans a 60% payout after a 43% increase in profit. the country's biggest bank reports thursday. this company reported its first ever adjusted profit. it reported a second quarter adjusted profit of $24 million, facing surging demand. lyft says it will go to to pay incentives and address a shortage. >> the financial impact of maintaining elevated new driver bonuses and incentives while prices declined is estimated at 30 million to 40 million, so you have to look at those combined. this is built into our outlook
of $850 million to $860 million. we realize incremental growth will climb the further we invest. it is just the right thing to do right now, is to prepare for additional demand. yvonne: is videogame giant activision reported growth let beat estimates even as it faces lawsuits on sexual harassment allegations. despite the surge in pandemic play winding down, the company rates profit forecasts for the year. clorox plunged after sales missed estimates and forecasts were cut. the company says uncertain consumer demand could see organic sales drop as the pandemic boom fades. clorox posted fourth-quarter sales of $1.8 billion, below the
lowest analyst estimates. david: we are heading into the tokyo lynchburg. you talk about the earnings season, that is front and center in japan, and to a lesser extent in india. top-ten and bottom 10 in the nikkei 225 are heading into the lynchburg. a quick look at the sectors. you have a lot of the big sectors coming out with earnings. nissan already. . toyota coming out with theirs. there is a split in the pie chart. 0.1%, flat on the index. keep your eye on industrials. an update on the earnings season in japan, we are about halfway through. by the end of the daily will be more than halfway through. it has really been more about earnings surprises and revenue surprises beating estimates there, a little more so as far as revenue. you cannot control revenue, you can to a larger extent control earnings. it has been a decent earnings
season. people have been talking about japan. yvonne: trying to figure out if they can actually deal with this pandemic and manage it. whether this covid bubble they have had is able to actually work, and then maybe perhaps you could see markets move on that. rishaad: of course we are also talking about the yen strengthening against the dollar. exporters, that begins to hurt them. there is the reverse correlation between what the yen doesn't what export-oriented stocks to, we have that as well in the mix. yvonne: winning the metal certainly helps sentiment. rishaad: they are putting on a good show. david: once in five years. [laughter] rishaad: harris is next. let's look at what we have next. we have more on the bloomberg's group which revealed that the united kingdom may block
nvidia's massive takeover of a british chip designer arm. details just ahead. this is bloomberg. ♪ and there you have it - wireless on the fastest, most reliable network. wow! big deal! we get unlimited for just $30 bucks. i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax people, my wireless is crushing it. okay, that's because you all have xfinity mobile. it's wireless so good, it keeps one upping itself.
>> global shortage has been impacting us. >> we are managing it, week-to-week, day-to-day. >> the chip shortage will continue probably throughout a would say may be first semester of 2022. . we will have some situations, uncertainty, lack of visibility. >> it is important to have a continuous view of the situation and how we can anticipate the supply situation. >> it is out of our control, essentially.
it is hard to predict. >> i think we have overcome chip shortage is so far quite well. we could manage, we could rearrange. >> that is something we will have to deal with for the rest of the year and potentially into 2022. >> we have a lot of customers wanting to buy our cars and we would like to sell more. we don't see that that is going to improve. ♪ yvonne: executives of some of the world's largest automakers commenting on the chip current. rishaad: the united kingdom is considering blocking it takeover of arm by nvidia corporation because of its potential risk to national security. let's get more with our guest. vlad, why is farm so important to regulators in the u.k.? it is partly owned by softbank, so it is already owned by foreigners. >> that's right. but when you look at the major
stories we have been covering, when you look at the story immediately before me about the chip shortage, most chips are driven by arm technology. . it is essential to many things, when talking iphones, google announced a new sensor process specifically for iphones that is also driven by arm technology. when softbank announced the takeover, they talked about a future where arm is already important but it will be so much more important. the internet of things. the internet of people trillions of small to large devices. it is a part of everything that we are talking about in tech right now. david: the markets authority in the u.k. has been tasked to prepare the report on why this is not a good idea. then you take us through some of the objections of nvidia taking over? vlad: there is two of them.
one i cannot really explain, it is national security. i cannot tell you why nvidia, an american owner, would be worse for national security than a japanese owner. the other is with videogames. yvonne: a lot of the deal is blocked by regulators, what is next? what is the likely scenario now? vlad: softbank is likely to pursue an ipo farm. the evaluation, $40 billion, when you look at bytedance, being valued at $500 billion, it might be underpricing arm. if the video -- if softbank goes the ipo route, it might make more money. for nvidia, it is committed to paying $2 billion no matter what happens. nvidia really wants to get this through and the company says it
is confident it will get through. yvonne: our star asia tech editor, thank you. we will be watching the bank of tokyo. malaysia's political woes have gotten worse. the country's largest political party has withdrawn support for the ruling coalition and puts the prime minister in doubt as he faces sure to resign. and traveloka is in talks to raise $400 million as part of its plan to go public via a. david: spac of southeast asia benchmark is up a third straight day. a couple of moving averages to watch. vietnam is a little closer to the top of the 50-day moving average. the philippines has been hit in a lot of ways, declines all over the place. jakarta and to a lesser extent singapore have basically been
rangebound, two of the top-ten, a lot of momentum, through. singapore reporting earnings this morning. the split right now, 20 up, 8 down. we will look at some of the lenders. rishaad: dividends as well. let's look at some of the first word news. the spread of the more infectious delta variant of covid-19 is pushing the threshold for herd immunity above 80%, that is the view of the infectious disease society of america. it presents a higher bar than the estimate of 60% or 70% because of its higher transmission rate. 50% of americans have now been fully vaccinated. a look at the sec. the commission chair signaling a pathway for approving a bitcoin exchange traded fund. it is crucial for taking tokens mainstream. . in his first major speech on
crypto, he implied that strict rules could supply investors with more protection. previously he had shied away, citing transparency concerns. >> right now we just don't have enough protection at this time. it is more like the wild west than some sort of protection against broad manipulation in the space. this asset class is rife with fraud, scams, and abuses in certain applications. rishaad: the f.t.c. with a warning that companies awaiting merger approvals may be in for long waits as their deals are vetted. the anti-corruption agency says it is facing a strain on resources and doing deals that cannot be fully investigated within the 30-day waiting period
telling them their investigations will be open longer. yvonne: before the tokyo 2020 olympic games begin in japan, there were doubts the international olympic committee could pull off the world's largest sporting event in the middle of a global pandemic. we spoke with the ioc olympic games executive director about how they have been handling the challenges. >> we have to learn from the past starting with what happened prior to the beginning. we are in the final stretch of preparation. your forecasters and technicians that have to work in china now, down to the minute details of the transportation plan and how you ensure the bubble will be maintained with the workforce going in and out of the various bubbles. so there is a lot of lessons to learn and a lot of exchange between the organizing committees. they have a collaboration
agreement that they had for years between pyongyang, beijing, and then tokyo. >> can you imagine another spectator-free olympics in beijing given the spread of the delta variant. >> it is speculation. i would love to have spectators in the venue. we heard a number of the athletes say that what matters is that we can compete and we can use the term of the pandemic to participate and -- with spectators. but if we had a choice we would prefer to have spectators. let us see how the pandemic involves, especially in china and around the globe, and then will look at the consequence of participation for spectators. >> i want to talk about political protest. the ioc relaxed their rules when it comes to athletes protesting.
we have had more expressions of political opinions from athletes since then. how does that play out for future games in places where free speech and political demonstration is not a guaranteed right, i.e., in china? >>? >> it is a guaranteed right. we have an olympic charter and contracts that establish a condition for games participation and everything that is in the charter and the contract deals with that. >> yet there is still a lot of pressure for a diplomatic or even a full boycott of the beijing olympics. how much do you expect politics -- these games? >> and 23rd of july, it was in the stadium. here you have what the games are all about, which is unite the world. this is what we will continue to
do. the politicization is something we have to avoid at any cost because that is not -- because what we are about is unifying the world at one place, at a given point in time. this is the message that we feel is powerful and this is what we have to demonstrate. you can hear the sentiment of the athletes in the village, where you have all communities from every country, and guess what, they live there. an ideal place, a formidable example of how we can all live together. this is what we are about. rishaad: the international olympic committee's olympic games executive director, christophe dubi. you could see more of our olympic coverage and keep track with our bloomberg's metal tracker on the terminal.
it is china leading the. race. . it is also on bloomberg.com as well, david. david: and there is also a guest to complement the story here a story out on how post-olympics when you look at japan a lot of the fortunes of the stock market there will depend simply not on what is happening there but also the virus and how they control that. as far as earnings are concerned, the, that seems supportive of a post-olympic bounce. earnings are expected to not have completely recovered as far as estimates are concerned. expectations are now actually back to highs. that is a topic going other back to the 1990's. that is so far away. rishaad: the nikkei is up 1% from the beginning of the year. compared with the developing markets -- developed markets, it is among one of the worst performers. but generally speaking, we get a
bounce after the olympic games. but there is something that could cloud that, covid-19. also, the prime minister facing reelection in the autumn. also, handling the olympics and also handling the pandemic which is, let's say, to be polite and diplomatic, i just will not say anything. yvonne: it will be interesting how the analysts are mixed about how this will play out. you have on the one hand, raising sentiment about olympic gold that china has had. then you have covid cases. david: the other thing i would point out as cases are going up, debts are going down -- deaths are going down. that is a little bit of a positive spin. yvonne: coming up, alarming research on india economy has revealed the extent of covid-19's impact on the nation's more marginalized sectors. we get more with the co-author of that report. this is bloomberg.
♪ >> what we are seeing is a very disturbing trend where -- mumbai's middle-class is bearing the brunt of what happened last year. middle class families who, many of them lost jobs last year and had assumptions that they would find another one in the next 6-8 months, which clearly did not happen. yvonne: our next guest recently conducted an extensive study on the employment situation in india and there are some
alarming numbers. joining us is an associate professor of economics. joining the -- thank you so much for joining us. you just heard that little snippet of what we have been hearing on the ground from people suffering from the second wave of this virus in india. first of all, tell us from your research, how bad is it right now? >> thank you. yes, the situation is bad, because we have had two extensive lockdowns. one in 2020, april and may, and in 2021, may and june. most of our work is about 2020 data that takes us all the way to the most recent lockdowns. we know that even in the 2020 lockdown, we had hundreds of millions of people who were pushed below the poverty line. the hunger situation was bad, particularly in the lockdown
months. the government tried to do something about this, and we can talk about that too, but important to remember is that the second wave of lockdowns came well before the chance to recover from the last lockdown, and the increased scarcity of the first wave which, translated into increased indebtedness, as you saw in the interview. people borrowing just to keep their homes going, and so on and so forth. we are looking at a fairly dire situation and a prolonged recovery road ahead. yvonne: walk us through how broad-based the impact has been. it seems like there is a lot of reports of people lining up in these food banks, is it -- workers that have been marginalized, or has this spread to other parts of society? >>? >> it is larger than the migrant worker issue. the migrant workers constitute the most favorable part of the
sector. we have to remember that even before the pandemic, india had a largely informal economy. 80% of our workforce is casually employed, or work on some sort of precarious contract, they don't have much job security or benefits. when something like a lockdown happens, they are quickly rendered jobless either because they cannot open their shops, or employers fire them. migrant workers are also bereft of many schemes that target people in their domiciles. the problem is much larger than migrant workers. rishaad: it is not just people being unemployed. the prospect of work, when it does arrive, can lead to underemployment, and underemployment is a huge other issue here as well. >> precisely. the overall employment numbers
illustrate the real extent of the crisis. we have a v-shaped recovery so over all the work participation rate bounce back after the first lockdown and after the second lockdown, but what it hides is people were doing salaried work, and they are now self-employed or they have some other kind of. . casual work there is an increase in mobilization underemployment. people are just trying to do something to earn a living,, which is not really earning them what they were earning before the pandemic. so technically, they are employed but they are worse off. rishaad: also, it is not gender-neutral, is it? women are much worse effected here, aren't they? amit: absolutely. this is in other countries too, not just india, the pandemic has
hurt women a lot more than men. we have seen women more likely to lose work during lockdowns as well as finding it hard to reenter the labor markets having lost work. women also tend to withdraw more from the labor force because household responsibilities go up -- -- for example, if children are not going to school for other reasons, they find it harder to participate as well in the labor market. so in many ways, women have been hit harder than men. david: so like any problem, there is a short and a longer-term fix. in terms of the short-term fix do you think we need more handouts? in the longer-term fix, the types of jobs that the indian economy creates are the types of jobs that if a pandemic hits, you cannot do remote. what is the policy prescription for the government? amit: this is where the
discussion needs to be. limitary what has been done. last year when the lockdowns happened there was a support package which included the distribution of extension-free -- the entire set of people who were part of the system. that has been extended till november of this year. i would say that is the single most important thing that has happened quality wise to offer support to vulnerable sections. that cash transfers happened last year. they did not happen this year, in the 2021 lockdown. we think that is quite reasonable to do another round of those even if the infrastructure does not allow us to deliver it as wide a section that needs it. the distribution system has a much wider reach, nevertheless, cash transfers can be done. the employment guarantee program played a crucial role. its allocation was increased by
the government. this year, it hasn't happened. these are all short-term fixes that can happen. today there is a parliamentary committee that recommended an unemployment program to be considered. we have been arguing for that for the past couple of years too. these are all short-term fixes. in the long term, you are right, we need to create jobs that are much more secure. that is a long-term term structural change for the economy. i don't think i can give a one minute answer to that. our report contains some long-term solutions in it. rishaad: thank you very much, amit basole. coming up, a preview of the bank of thailand. it is deciding on interest rates. that decision is four hours and 14 minutes away.
rishaad: you are back with bloomberg markets. still to come, exclusive interviews. one with the executive chairman of a malaysian developer. we will also be discussing the outlook for indian markets with the chief investment officer of india's first --. also looking at some key economic data, pmi numbers from india, the united states, u.k.,
russia. united states coming out with the employment report ahead of the official jobs numbers which are due friday. in india and thailand, looking at some consumer confidence gauges. in thailand, we have the interest rate decision. the central bank financing its latest policy rate on wednesday amid a surge in covid-19 cases. let's get more with our global economics and policy editor, kathleen hays. kathleen: let look at highland. we will get -- let's look at thailand. they are said to hold of their policy even if the economy keeps contracting. they cut their 20 and 2021 forecast in june and now things are even worse. the is ordering more stringent restrictions with covid cases surging. the gdp has already contracted five quarters in a row.
they are in a deep recession. later in the month, it will be the sixth contraction in a row. in june, the bot also signaled they were not willing to cut the key rate. they prefer to see more targeted covid assistance. the cabinet just this week ok-ed doubling the fund they are using to provide payouts to workers and nurses battered by the virus. those two things in mind, they already see their rate at a low level, the government is stepping up more support. hold the key rate at 0.5%. however, by years end, bloomberg economics says they will make another 25 --basis point cut, because they will have had two years of negative growth. a pretty grim outlook for the country. david: kathleen hays on a preview for the back of
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