tv Bloomberg Markets Asia Bloomberg May 3, 2022 10:00pm-11:00pm EDT
than 40 stations. plus global under investigation adding to scrutiny of its ipo at home. rishaad: of course and read at the top of the agenda today meeting taking place at the federal open market fomc pretty much at the moment had signaled and almost amended a 50 basis point cut. the question will be what is the linguistics behind all of this? what is the verbiage, what is jay powell going to say if he gets more hawkish, bets are off in terms of currency. we'll talk about it, but overall, under pressure for the three-year aussie bonds losing to the upside. the yield just about 11 basis points. dropping 3.1% there. the two-year, 2.84% at the moment. the yield on the aussie. it's really all down to what the fed does next. and with the aussie, the rba did
yesterday. let's have a look at what else is happening. haslinda: markets around the world gearing up for an aggressive fed rate hike. let's get more analysis from our global economics and policy editor kathleen hays. kathleen, a 50 basis point hike now expected. what about a 75 basis point hike into the future? kathleen: traders waiting to see if jay powell opens that door. the door is wide open. a 50 basis point hike, since the march meeting, every a fed official has talked about it and endorsed it. definitely ready to go for the 50 basis point hike. in fact, they are now looking for a 50 basis point hike. if you look at the two subsequent meetings, two more 50 basis point hikes for a total of 290 basis points. that would take you well above the fed's view of a neutral rate at two and a half percent. now, in terms of that 75 basis point move, what will jay powell
signal? well, let's set the table with this. number one, so far, no fed official, including the st. louis fed, has actually set i am in favor of a 75 basis point rate hike. we could be an option if needed. they said it in 1994. i don't want to shop loose, let's move methodically. that sounds 25 to 50 at each meeting. i am ok with 50 basis point hikes because he does not see them needing to get any bigger than that. very important, when people talk about it, november 15, the fed did give a 75 basis point hike. however, in the two summer meetings, tune in august, they had set 50 basis point hikes. when it came to september's meeting, they realized that the election was too close to actually go ahead and make any kind of rate hike. so greenspan waited and he did a
75 basis point hike at november 15. it's a very different situation, which is another reason why people do not expect them to do it. but they do expect jay powell to at least say well, i am watching the data. we will see what happens. unless he says we have to have methodical moves, which we have seen, they figure he will keep the hope alive of a 70 basis point hike. you mentioned the possibility of a soft landing, very interesting. a former vice chair of supervision, left the fed when his term ended in september. he said today that they're going to have to hike rates a lot. they're not going to be able to achieve a soft landing in a recession is going to be in the cards. rishaad: so, you know, is the word popping up at all at the meeting, last week, we could see stagflation on the horizon. is this something that they dare talk about? kathleen: again, it depends on all the fed watching reporters
that attend this press conference to ask the stagflation question. even if we do not get a recession, we will continue to have high inflation, slower growth and that is something that if consumers are combining about high inflation and how hard it is to fill their gas tanks in the united states and make some of those drives you have to make when you're outside the urban areas, think other going to feel about stagflation. jay powell until recently seem to focus more on the strength of the economy how type the labor economy is pretty the labor market is too hot. another reason he maintained a hawkish tone. in terms of what we are expecting, i think there is going to be a global recession. hearing from the reserve base in new zealand, presenting their financials to build a report. that he sees the global slowdown as its distinct possibility. let's listen. >> it certainly cannot be ruled out. as we've seen, it was a very synchronized global hurt from
the pandemic, so we are all coming out of that. simultaneously, albeit in different ways. and we are talking global commodity prices that are being impacted through the ukraine crisis. kathleen: of course, this is something that we been watching as well. commodity prices, ukraine were, affecting everybody. outside the u.s. slowdown, one more thing. what about china? what about the china slowdown? 2015, the chinese have the big market selloff. the feds are going to hike. they had to wait until 2016. we know seem to be in a similar boat. the u.s. stock market has sold off bonds. have already sold off financial conditions are citing -- tightening. severe in china to raise that risk as well. i would not be surprised if jay powell answered questions about the china slowdown, global
recession, and after that policy statement at the press conference tomorrow. rishaad: kathleen, good stuff. local economic policy editor kathleen hays. let's get to mark cranfield having a look at all of this. it's going to be keep your dumb talking jay powell here. and if he does get more hawkish, then you might not see the dollar selloff that many people are saying could have been. mark: indeed. it is all about frontloading. that's what we saw here today as well. we expect something similar from the federal reserve. as kathleen was saying, you can see that there are investors already beginning to be concerned that even though we've got nowhere near the peak of interest rates, where thinking about the possibly of a recession may be the next two years. as i said, we will be just as well aware of this as anybody else and they will want to get rates up to a level where it is
useful for them, so that they have the ammunition to lower rates quickly. should they need to when they see these headwinds become really severe. and because a big slowdown in the economy. so it is all about frontloading and we could hear the fed say that they are willing to be more aggressive as kathleen hays was saying. 75 basis points has not been clearly mentioned, but certainly it is an option for the fed. if they want to get the rate up to a level at one end of the year, then certainly they got all kinds of tools on the table. several basis points higher is a strong possibility or maybe throwing in a couple of 75's as well. that could keep the dollar pretty strong. yvonne: the dollar also in focus. investors watching that. saying that creditors are engaging in options. what is the story there? mark: we have seen a massive
options yesterday. yesterday, we saw more than 10 times the usual at the number of options traded at the hong kong dollar. several people buying strikes and options. 785 is the official ceiling of the hong kong dollar bank. but people were even trading options, which strikes against the u.s. dollar. we do not usually see this happen except the people expect a long time of dollar weakness. volatility is relatively low, so that makes people buying these kind of strategies relatively easy. it is not too expensive. but they do note that the hong kong authority has a lot of experience in defending the hong kong dollar. really the payoff for these people is that if they get a battle with the authorities for several weeks, then they start to pay off in terms of what happens with the curves and volatility. this is something that's going to be sticking around for a while. yvonne: strategist mark
cranfield, we thank you for your inside report. to follow more on this story in today's trading on our markets live on the bloomberg at live pretty here is the first word news with vonnie quinn in new york. vonnie: thank you. china's capital is tightening virus restrictions. if a lockdown as it attempts to control an outbreak that saw 53 new cases on tuesday. 40 subway stations are closed and movement is being restricted. authorities are conducting another round of mass testing. schools are suspending in-person classes for a week. china's growth forecast over the lockdowns, trending gdp estimates to fall from 4.8 percent, contracting sharply due to virus constrictions. they expect disruptions to ease this month. the agency cited risk from
china's zero covid policy. russia has avoided its first foreign default in a century, bonds trickling through investors. major clearinghouses have been seized and processed some pavements or oil bonds due in 2022 and 2042. 600 at the million dollars become entangled -- 650 million dollars a become entangled after the invasion of ukraine. sources tell bloomberg's russia is signing referendums to occupied areas of ukraine to open the way for a full annexation. almost 10 weeks into its work, we are told the kremlin is focused on cementing political control of the seized territory. french president emmanuel macron has a two hour call with vladimir putin asking him to allow evacuations to continue from the besieged steel plant. global news, 24 hours a day. on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg.
rishaad: right, let's tell you what we've got coming up on bluebird markets. evolution mining ceo with an exclusive interview looking at the outlook for gold. but next, more coverage from the global conference. indonesia's investment authority chief executive joining us to discuss their investment strategy. this is bloomberg. ♪
lower and we are going to have to work very hard for our clients to find those opportunities. >> most families in the united states are having an incredible run. we are seeing double digit rent growth almost across the country. and it is not letting up rude and it is a big component of inflation across counties. >> cities for example, talking last year and you're right, there is -- is becoming even more difficult during the pandemic. >> we have been able to attract unique talent with global propositions and also because we have unique leverage points, such as the way that we bring our strategic partnerships and helping our companies do even better. >> i think we're going to have wage inflation started this summer, so i'm not going to say the word stagflation. it is a high risk. it is still a low risk, but it has got to be on the vocabulary for next year. there is nothing, no opportunity
when you are in a stagflation environment. haslinda: our guest coming to you live from the of then in los angeles. -- of the event in los angeles. we have policymakers weighing in on the trends and issues facing the world, including the likes of stephen. as you know, the former u.s. treasury secretary wade in on the war in ukraine. he said there is a need for europe to ban oil from russia. that sent a strong signal, so other policymakers as well as investors weighing in on all of the issues acing the world. rishaad: of course, still happening with the federal reserve. let's have a look at what is going on with shares. to the upside, first profit ahead of investment. serious economic recovery
progresses from the pandemic. we caught up with chief executive jake telling us about the banks outlook in an environment of higher inflation and of course, higher interest rates. jake: it changes the outlook. we been through quite a significant pandemic in australia. essentially for 30 years, we have had rates falling. it's quite a big pivot. we are now talking about a new world, a world of inflation. all about customers and industry with an extraordinary number of homeowners. i've had my horgan -- mortgage rate go up. there's a shift in the tradition screwed some of that is good for banks -- shipped in the traditions. some of that is good for banks. marginal outlooks for businesses. the caveat will be how will customers behave? what will borrowers do? if they contemplate a different operating environment. haslinda: that question of what
will consumers do come only comes to loan growth, there is lag and competitiveness in that area. it is based on hawkish growth. kind ability. have we kind of missed that window now that the tightening cycle has begun? shayne: we wish we had our act together. home loan applications the last year, i don't want to make light of it. but if we think about it in this new world, probably going to be rising. i'm not so sure that missing a little bit of market share growth in the last six to 12 months is such a bad thing. what we've really got, we got a large timeline. $280 billion in higher maintenance. really want to make sure that they are in the best possible shape to see through the exchange. head on repayments. cash balances. this is going to be a new world and i think we got to focus on what we already have and a little bit of sheer loss, not
ideal, but that's not what is keeping me awake at the moment. haslinda: what is keeping you awake? shayne: what is keeping me awake is trying to understand what customers will do. many of our customers have lived through it -- i've never lived through an inflationary time. you're a traitor, a traitor or something. and so we don't really understand behavior. we have seen extraordinary levels of save thing. what are they going to do? are they going to put more money into savings? are they worried about the future? or are they spending more because unemployment has really lowered at the same time. there's lots of moving parts, but to me it will all come down to the consumer behavior. and how are they going to go and change their life. and then something like what we seen over the last year for example, a massive shift of people moving and putting money into deposits. because people went ahead and
cashed because they're worried about the future. we might not know how it's when a change and we have to keep a close eye on consumer behavior. >> that was ceo shayne elliot. and our right back to the conference. raising more than $5 billion in 2021, indonesia has deals in growth focused on tollroad investments and looking to have a sustainable development project in the future. ceo ridha joins us at the global conference and message was. thank you for joining us. it's always been 200 billion dollars per where are you on that. and it is an environment, will it hinder you from getting to your target? ridha: thank you for the question. i think at the fund, we always take a long-term look on investing. but most important, i always say
i am not worried about what's going to happen. i'm worried about the first billion. why? because i need to make sure that fundamentally are strong, so that they can pass the test of time. the test of policy. so that these bonds can be used for future generations and generations to come. so in the first one here, we actually have -- we are strengthening our fundamentals. we have made an investment in digital infrastructure, along with our long time -- we invested in the tower and as you mentioned earlier, we have now in -- negotiated an investment. it was like 20% of indonesia. so if i was to answer you, yes, i think we are on our way, but
we will make sure that we do not -- we want to make sure that we invest in something that we take very very -- i would say that the timing would probably be a bit stretched. it also depends on whether we will be getting large sections or not. but the fundamentals, the system is ready to go. haslinda: long-term investors are concerned about the long-term of indonesia, because of policy returns -- u-turns. and recently we saw a u-turn to do with the ban on exports. will that hinder indonesia getting credibility? with that hinder indonesia getting the trust? ridha: i am not here to talk about the policies, but i am here to actually talk about how
indonesia has funds have gained more confidence. for a number of global theaters. and i can mention names that have been used, gic, pension funds from canada, pension funds from the netherlands. we have a number of similar like-minded investors. we actually have an extremely -- having extremely encouraging discussions with them. i think through real investment with them, that actually will show that it really can be good. haslinda: how are you navigating the uncertainty out there right now? talk about a higher rate environment, the bond market. stocks getting hit. how are you navigating and how are you positioning >> ridha: i mention one thing before. we like to look into things in the long-term basis. we like to see investments
behind the noises. you know, we are blessed with a lot of commodities and minerals as well. so yeah, the ukraine war and inflation as a result of that, you know, may push the price up, but by the same token, we are blessed because of this. streaming positive -- extremely positive balance. and balancing those up, today, indonesia is the best or one of the best-performing equity markets and one of the most stable currencies this year. and i think it will be in the times ahead as well. thank of indonesia, because indonesia has historical spread, it is not in a hurry to increase inflation -- interest rates. inflation is in pretty good shape. haslinda: are you interested in
looking for energy access, given the shortage of -- for energy? is it something you would be interested in? ridha: we have set up initial topic on potential interest. one is an ecosystem and that includes infrastructure which we already made and will serve as digital commerce. the names that you know. but we don't look only on those. we look at the full spectrum of digital ecosystems. that's another one. -- that is number one. number two, we are looking at infrastructure. we are working on airports and also seaports. we are looking for example, that is the second group that were looking at. the third group is health care. they need for health care in indonesia is just amazingly bright. we are looking into hospital
chains, the largest companies. and lastly is the energy transition industry. we are looking at potentially investing where we could take out some of these coal producing power plants and invest in renewables. haslinda: how about ev? the minister made headlines because he went to see elon musk. to do a deal with them, to do a nickel mind. my that interest you as well? ridha: if it is interesting, we definitely will look into that. if it fits nicely in our renewable energy portfolio. haslinda: we thank you so much for your insights today. indonesia investment authority ceo ridha. rishaad: on a day where we are seeing markets under pressure, it was quit a volatile session in india. let's take a look at some of
these debt moves in this part of the world. looking at it being a holiday again in the country there. we are seeing what these companies are making headwinds. we can see at the moment it is certainly a case where technology stocks there, you can see -- japan, there you go pretty semi conductors like taiwan, on the way to the upside as well. look at chip stocks two, just quickly checking with what is going here. the hang seng index dropping. partly here as well. we are looking into dd global chaotic 2021. further dampening investor appetites for the business sector, it is really an investigation. it is unlikely that other stocks in the sector, there we go. there is a look. on the hang seng tech index,
certainly those are moving further to the upside. this of the chip sectors. with a look at what we have coming up, we are going to meet jake klein, joining us for an exclusive chat about the gold market. that is on the way. this is bloomberg. this is bloomberg. ♪ what's it like having xfinity internet? it's beyond gig-speed fast. so gaming with your niece, has never felt more intense. hey what does this button do? no, don't! we're talking supersonic wi-fi. three times the bandwidth and the power to connect hundreds of devices at once. that's powerful. couldn't said it better myself. you just did. unbeatable internet from xfinity. made to do anything so you can do anything. whoa.
>> you're watching bloomberg markets: asia i am vonnie quinn with the first word news. federal reserve vice chair says the u.s. will probably fall into a recession as the central bank combats multi-decade hallie inflation -- high inflation. it would be unable that that's unlikely that the fed would manage a soft landing. he says that the fed should've a tided -- started tightening in september. domestic industries have been notified that the tariffs are
set to expire in july, but a request can be made for that to be staying in place. they need to examine the tariffs need an effect. pakistan finance minister has announced in a twitter post that the central bank governors three-year term would expire on wednesday, he did not announce a replacement. the decision comes amid a economic crisis and a clinical shakeup in pakistan. global news 25 hours a day on air and on bloomberg technique powered by 2700 journalists and analysts, i am vonnie quinn this is bloomberg. >> that you so much, in a fiery siege, u.s. vice president, -- harris accused republicans of
attacking women's rights. >> women's rights in america are under attack. how there -- dare they tell a woman what she can and cannot do with her own body. how dare they. how dare they try to stop her from determining her own future. how dare they try to deny women their rights and their freedoms. >> now president biden urging election lawmakers to support abortion rights, this would be a challenge, let's ring in bruce -- bring in booze -- bruce. this is a divisive issue here. how on earth do they navigate this? indeed the thing is to get them on the books as a law is quite challenging. you need to get people voting,
democrats ultimately and that has been a challenge in the past. >> as far as the short-term challenge, they will not build put this on the books. there is no way to codify roe v. wade currently without overcoming the filibuster in the senate. it will not happen. we have been through this many times. there is not supported in the senate for getting rid of the filibuster. it will not be possible for the democrats of pushes through the short-term. however as you said, the question then is getting people to vote. this is where, the supreme court decision, if it turns out we are now expecting it will could change things. up until now the republicans have been looking forward to the midterm elections in november. their supporters were very motivated to go out and vote. the democrats not so much. this will change things a lot. as we just heard vice president harris gave a fiery speech. there will be a lot democrats
that are not too keen on voting, because things have not been going their way during the budget demonstration -- biden administration. it will really change things with who controls the senate and who controls the house. >> states have already reduced access to abortion, what has been the response? >> there are a lot of states that have already imposed severe restrictions on a woman's ability to get an abortion. if this supreme court decision comes out the way we now expect it will, it is likely that within just a few months of --20-25 states, possibly the more will have severe report -- abortion restrictions in place. it will prevent women from getting abortions and a huge part of the country. that is something that is potentially, will be a huge
issue in the midterm elections. vice president harris in her speech also talked about how the threat here is not just to the right to abortion, it is potentially for many other things. she talked about marriage equality, same-sex marriage, something that came down from the supreme court several years ago. that really could be in jeopardy. other rulings that are based on similar principles as roe v. wade such as the right to use contraception could also be in danger, vice president harris said, except this your a lot -- to hear a lot of that in the months ahead. >> monitoring all that, bruce, is get back to mcquarrie, australia conference, we are standby with our next guest. take away -- take it away. >> i with the evolution mining executive talk about all things gold. we are seeing gold hit a 11 week
low, you think about rising inflation, slowing growth, geopolitical fears, kind of a perfect situation for gold, but the fed and rate hikes. does that change your expectations? >> know it has not, all eyes are on the fed at the moment, if you go back 60 days gold was flirting with 2000 u.s. dollars, has gone higher than that, let's see what happens tomorrow. i am optimistic about gold and the medium and longer-term. >> the fundamentals have not changed in terms of your perception of demand, what is your outlook at the moment? we know that the numbers are low but below what you expected. >> at evolution we are focused on margin over volume, we reduced our cost per ounce last quarter. production was a bit low, but we are expecting a 20% higher outlook this quarter. the canadian mine is a real
turnaround opportunity. we are optimistic about the long-term future. operational issues in 2021, we feel we are largely through that now. >> you are talking -- giving your positioning being very focused and australia, is the focus shifting event in north america? >> in our view in the rising geopolitical risk environment, jurisdictional become increasingly important to investors. the focus exclusively on australia and canada. we do think that they will close mining did restrictions, and you can reliably will of law. those are places where you want to operate. we will own 100% of our assets and each of those countries. >> do you think we are on the cusp of another -- >> i think we are potentially in the middle. inflationary pressures are real.
gold is a great inflation hedge. i guess it follows, when it is performing a reasonably well, the last couple months, it is a lot higher than it was five years ago. you will see inflationary cost pressures and you see that in the sector. >> do you see any impact from the lockdowns in china with the way they have been dealing with the covid strategy and the potential impact on the pan -- demand? >> i think covid is added an extra layer of pressure, there is a skill shortage in australia, a lack of ability to move into western australia particular for the last couple of years, all of years, all that has exacerbated, plus the very high commodity prices outside the gold sector. >> mining has been relatively unscathed, as you say the mobility and labor shortage, has started to height more? >> our wine -- mine and western
australia, western australia is the most difficult place. our east coast operations are largely insulated from that, covid has come through and we dealt with it well over there. and western australia the skill shortage is a challenge. we are managing it quite well. >> we also see naches inflation, but the rba and what appears to be a more hawkish -- does the issue of rising cost effective -- affect you? >> we have a u.s. bond from six month ago when we bought the u.s. henry asset, we did in eight and a half year average maturity, i think it would cost 78% today, we are fortunate that most of our -- seven percent or 8% today. >> we are happy with the balance
sheet. >> what you think what the rba is trying to signal when it comes to the economic recovery as well as the elements that would affect you like wage growth in the labor market? >> i think they are signaling the same thing as the fed and they have the same challenge. the economy has low in employment at the moment. very high inflation. to bounce that and to -- and not put the country into a recession has not been done before. i think investors should put their money in gold because the likelihood of them overshooting inflation is high. it means that you should have an exposure to gold. on balance the reserve bank is trying to follow other central banks. it is -- inflation is higher than anyone expect -- anticipated. >> a return to some kind of
pre-pandemic normal, is this return to normal for your business and do you see the lingering effects of the last two years? >> we certainly feel the impacts and have dealt with it fairly well, 25% of our workforce, tested positive for covid. that had a big impact on the available dinner workforce. it did not -- on the availability of our workforce. there have been complexities that have definitely been thrown at us as a result. >> australia has devoted a couple of weeks, what is the one change people most need for the country? >> we need to move towards more renewables. we do need a approach towards renewables we have a great asset in water and converted to pump hydro. very optimistic that it could be part of the solution, to
gigawatt 10 hour battery deep storage -- would be an incredible transition from a mind to a renewal. i would like to see australia be at the forefront of renewables. we have the opportunity to leave the world. lead the world in running space, technology, that is the things i like to see -- mining space, technology, those are the things i like to see. >> heidi, thank you so much, still to come on the show beijing shuts down doug jones -- dozens of metro station's as it tries to avoid a full shutdown. the latest market reaction coming up next to be here with us. this is bloomberg. ♪
>> you are back with bloomberg markets beijing shut it down more than 14 subways in his latest move to contain the spread of covid, our chief asian correspondent is right here with me. when is a lockdown not a lockdown? >> technically they are restricting people's movements, they are not calling into a lockdown they saw the blowback in shanghai, in the sixth week
of a total lockdown and no indication that there is easing, even though some districts have met the criteria of zero covid transmission. same thing in beijing, a more strict playbook that the cases, 51 in the previous 24 hours, 51 new cases. shanghai's down below 5000 a day. they are getting under control. beijing does not want to get to 50,000 or anywhere close to it. they are closing it down 40 subway stations and the latest move in addition to closing gyms, cinemas, and restricting people's movement complete lee as we and the five-day labor day holiday. it is not a lot, therefore 59 subway stations -- there are 459 subway stations, the busiest subway station in the world. they will restrict that.
>> on the other hand, hong kong set to get a much awaited shot in the arm on thursday, what can we expect, some social districting restrictions are a lot -- relax ahead of schedule? >> there are cases to be made for hong kong to open up quicker than what is happening in china. by all accounts and all the latest projections for china in gdp with banks lowering their expectations they do not expect zero covid to be eased at all this year. hong kong at think the cases actually being made for it to diverge a bit china zero covid policies and open up. we've already seen the chief executive start relaxing some of these restrictions earlier than expected because the caseload is down in the lower triple digits. the economy is suffering. the gdp growth contracted for percent in the first quarter. there are indications that
things are picking up, retail traffic is picking up and as of tomorrow, thursday, restaurants can stay open a little bit later , actually have more people at a table than the current restrictions. two weeks later we will get restaurants to be open till 10 p.m. and bars until 2 a.m.. there are already indications that the indecon -- that the economy is picking up in april after the worse than expected first quarter. i want to make one last point about the international situation for hong kong. there has been relaxation's on flight bands, yes, nonresidents will be allowed to come back into the city for the first time in a couple of years. we have 153,000 people leaving hong kong already this year. that is five times the entire number of 2021. we are getting indications of the first time in six months, those arriving in hong kong have
outnumbered the number of departures for the first time in six months. that is a good indication that those people that have left are starting to come back. >> that shot in the arm that you are talking about i am feeling it. >> a step in the right direction, thank you so much for that, let's stay with hong kong, take a look at where the markets are, they are under pressure. falling as much as to have percent, easing somewhat, but still in negative territory to percent. that is to do with didi that says it is under investigation with the sec in the u.s.. not helping sentiment already dampened by revelatory concerns. --regulatory concerns. let's bring in chief market initial analyst, talk to us about didi. >> we do not know when the sec investigation started.
the announcement was towards the end of a very long statement by the company they released on may 2. we do not know if it is a new investigation, an investigation they have been cooperating for a few months now. what is clear is the sec, it protects u.s. investors, there were calls for investigations into its ipo and didi's rollaround that, whether it broke disclosure rules, that it was under scrutiny by the chinese revelatory side -- regulatory side. didi is struggling to get permission for a hong kong listing. it is a no man's land when it comes to preparing to come back home, because chinese regulators
or the central government do not agree on how punitive the punishment for the ipo should be. already under scrutiny in china, scrutiny increasing the u.s., it is not a good time for that company right now. >> sophia, we are looking at tech again under pressure. there seems to be no respect for this particular industry group -- despite for this particular industry group. >> that was extremely concerning, also that was clarified by the cccp, the chinese state board sent a mobile alert on the news and everyone thought it was important an important means jack ma, it has been clarified cents. look alibaba, the key thing was that the last week's statement
on how internet platform companies would play a significant and important role in providing economic growth. people are reading that as not so positively this time around. it is more of a pat on the back from chinese policymakers and that they completed regulation, it was successful, the big tech firms have been reined in, it is not a removal of the strict grizzled -- regulations, it is not a rollback. china and xi jinping's policies and the sector are not going away. allow that optimism is being rollback. the open tomorrow, the china mainland market reopen, there is softness expected there as well because they hong kong and offshore markets have not performed well. i think tech is one of the difficult -- china tech is one of the most those sectors to invest in right now because either a great valuation play or
>> welcome back, let's do a quick check of the latest business flash --/headlines, elon musk who is set to take twitter private he say he may -- three years into acquiring it, until then he will complete the $44 billion takeover they this year subjected to conditions such as approval by shareholders and regular leaders -- regulators. the company says they see substantial demand for travel heading into the busy summer season, after more than two years of covid restrictions, second quarter revenue is forecasted to just over $2 billion. the conglomerate can manage -- assuring households are sitting
on relatively high levels of savings built up through the pandemic speaking at the mcquarrie australia conference he also warns that the supply chain snarl could continue. >> we fill our business is well about managing some of those disruptions and the support of the next few weeks will start to get back operational. i think we will have more of these short-term challenges as we go. >> having a look at the markets, this is a position at the moment, we see the hang seng deepening 1.1% down, it is greenery there, i holiday as well. we have taiwan and much -- not much else to write home about in regards to equities. all of this against a backdrop of the fomc meeting, eking a rates near -- looking at rates near 50 basis points that is being cemented in. bloomberg dollar index flat, we
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>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang. emily: i'm emily chang in san francisco and this is bloomberg technology. coming up in the next hour, travel is back and will continue to boom, this according to airbnb, out with its earnings beat that shows despite inflation and global macroeconomic uncertainty, people are on the move. we will break down the report.
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