tv Bloomberg Technology Bloomberg June 9, 2022 11:00pm-12:00am EDT
it is almost 11:00 in singapore and shanghai. welcome to bloomberg markets: asia, i am haslinda amen. >> let's have a look at the top here. see event for asian risk assets. this is all despite beijing denying bloomberg reports on revising the ipo. >> inflation remains the big worry despite china's factories: somewhat. >> and, clashing over india's cricket premier league. a brand worth almost $6 billion. >> it looks like it is going to be a pretty ugly and to a pretty choppy week. we have investors selling both
stocks and bonds ahead of the cpi data out of the u.s.. they are looking to see if we have seen peak inflation. suggestions are that we have not. cpi is coming in at 1.2%, slightly lower than the estimated 2.2% ppi. motivating ppi numbers out of china. it is not giving any reprieve. i turned around and it was down as much as 3%. we will give you a watch on the end. 13405.
that would be the lowest level in 24 years. >> let's look at tech and hong kong. this is positive despite the rumored reports of that ipo. that is what we are seeing at the moment, these tech stocks not going down without a fight. this is coming back a little bit, rebounding and it was down as much as 3.1%. the csi 300 as well. this is relatively flat as well. let's look at this picture for southeast asia. this is where we still have some divisions and that monetary policy committee.
that is because of inflation fears at the moment. good news. 2% down right now. let's also look at the other big story. that is the cpi print we got out of china and the cpi print, we will see what they need for the respective economies. >> the china one is fairly benign. at least the door is still open for them to ease a bit more if they choose to do so. they are certainly leaning in that direction. they will probably get a bit more speculation that they will get triple outcomes. we are seeing the china markets recover quite well.
the u.s. is the big one for the g10 world. a number of people have been hoping that inflation numbers would peak but that has not been the case so far. oil prices are still extremely high. that is just making it more difficult. there is a room -- there is room for a lot of volatility. this has to do with the bank of japan because there is talk about the dollar yen at 134. it is a very big week for financial markets and the kind of fun volatility we have seen over the past couple of days. >> this is also about suggesting that rates outside the u.s. are also rising. you have to wonder whether this makes dollar assets relatively
less attractive. >> if anything, it made them slightly more attractive. they put themselves in a spot with traders. she would clarify what fragmentation means. by that, they wanted to see the german and italian bonds as the key indicator for the european market. it has been getting wide over the past few weeks. traders wanted to see that the european central bank defined what they saw as the limits on that. maybe they could defend that. but they did not do so, they just muddied the waters by not having a clear plan on how to help the peripheral bonds. bond traders, there are no limits.
that is why you see detailing yields jump 22 basis points yesterday and german yields were higher as well. plus, the euro was lower. christ thank you. that is on the bloomberg. you can get the market to go here. you can find out what is affecting your investments right now. we would be talking about surging inflation giving several spots around the globe help. did the ecb help when today? >> they pushed the dial. two or three months ago, the consensus at the ecb was moving very carefully toward rate
hikes. originally, they would hike rates until autumn. she clearly made her point to admit or announce that yes, they realize now, some would say they realized they need to catch up and she and her colleagues are ready to do something like a 50 basis point rate hike. >> we expect to raise the key interest rates. >> the calibration of this would update inflation outlook. if the medium-term inflation outlook persists or deteriorates, the larger increments will be appropriated during the september meeting. >> they look at this chart. they looked at inflation and
said look out inflation has just taken off in the euro area. how can we continue with a slow step to get out. they are still and negative rates. negative 0.5. i think this is what also brought them around. i think it is important. i talked about this yesterday. this will question of fragmentation and what it may have meant for the discussion moving forward. they would have to do bond purchases in particular to keep them from getting destabilized from a surge in yield. maybe the doves could get more hawkish. this is not a rapid and aggressive rate hike move just yet.
we'll see what happens. >> we got the cpi report for the u.s.. we will look at that incredibly closely. the bloomberg column is adjusting this month, june is going to be worse than may. you have good core prices going down but a lot of traders are going to be talking about peak inflation. that means the central banks can reassess what they are doing but the feds got to see it coming down. they say they want to see evidence. that means real numbers sustainably moving lower. 8.3% is the forecast.
again, you have all kinds of indication that these numbers are not getting better and they are not getting better fast. when it comes to what to expect, i think one of the most interesting things next week will be the dog. they update their summary of economic suggestions. there was a big pivot toward more aggression in december, another one in march, it will be interesting to see if more people get online with jim bullard from the st. louis fed and decide that we may need more rate hikes than we saw even three months ago. >> that was kathleen hays with food for the bears. let's get to that story. it is providing more forage for
those animals. we will get the first word news in new york with vonnie quinn. >> the chairman and cio said that we are six months into a bear market. highly, highly probable, a bear market. china is about to put on file a chinese canadian tycoon. the wall street journal says shanghai prosecutors plan to -- he was taken from the four seasons in hong kong. china has since taken control of nonfinancial firms. xi jinping is: on the government to balance the covid zero policy. state media says they are
overcoming economic challenges. china's economy is widely expected to miss the 5.5% vote target. covid-19 cases will top 600 for the first time in weeks. 670 four cases announced. the highest since mid april. officials are warning that omicron subvariants cause of the spread. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. >> january 6 helped put 2.5
centuries of constitutional democracy at risk. the world is watching what we do here. >> let's get you to jodi schneider. what is the overall mood like? the republicans and democrats are probably further apart than ever. >> very few mines were probably changed but they did lay out what they hoped to do, what they hoped to prove over the next few weeks and six more hearings and basically said that donald trump did not expect of the outcome of the 2020 election even those around him including his attorney general and his own daughter were accepting it, that he then provoked this violent attack on the capital and that
he did nothing to stop it. that is what they say they are going to prove. there has been some very dramatic footage from the documentarian embedded with the proud boys then basically attacking the capital. we heard a very emotional and gripping testimony from the capitol police officer that was badly injured that day. all of this as she tried to protect the capital from that crowd that was violently seeking their way inside. this will be the impression over the next few weeks the more they prove their case. and to a lot of americans, they will not prove their case because they still stand by the former president. >> what is the biggest challenge here? is it about proving trumps intent? >> yes.
it is about his intent and that he helped light the fire of what was that tonight but then he did not do anything to stop it. people in the west wing were begging him to stop it and he did nothing to do so. i think we will see a lot more of these videos. a lot more of these images and how very close to great harm lawmakers and even the vice president of the united states were, selecting that layout and trying to make that case to the american people. >> thank you for that. energy prices have remained elevated and are persisting and supply chain disruption. india's -- we will get the market outlook
between those of high inflation and slowing economic growth stir investor anxiety. let's get more from eddie. thanks for joining us. your first hand with us, preoccupation with peak inflation. if you look at where china is, it suggests inflation moderating. what is your take? >> we saw some stabilization in may. especially in the second half of may. there are still many lingering things out there. we had the russia ukraine conflict. our advice is really to manage the downside risk given the bone uncertainties. staying defensive means you need
to actually take a very active look at your portfolio and reduce overall concentration. it needs to be more focused on active selection. >> what is it? are you holding more cash? >> i think that is slightly more bearish than the consensus because we believe that earnings are vulnerable to downgrades so we are only positive on indonesia because we think the recovering solution should support the markets. grexit we just have one stuck here.
it highlights the volatility we have been witnessing as of late. if you have a look at the fnd 500 which is seeing about 30% -- 30% of its equities, that tells you that it is a stock market now and you don't really go with sectors and industry groups. you have to be very careful. >> i think i agree with you. i think that stock selection will play a more pivotal role. the defense sectors have tended to outperform technology which have had a good time during the pandemic. now it is facing some valuation concerns. even within the technology sector, i would say there are selective opportunities. especially those companies that could actually come through some
headwinds and we want investors here. >> given the noise coming out of beijing, perhaps you are seeing light at the regulatory tunnel. do you buy into that? if not, where do you go? >> we actually had the regulatory tightening of the tech sector. we could be near the end but we have a slew of measures on economic plans to bolster the economy. i think the key for china is up a bit away from the global strategy. i think that will continue to
dampen the recovery in the economy. >> we have the bloomberg commodities index hitting record after record. >> we did highlight that commodities as an asset is useful as a patch. even agricultural products. within the commodities space, i think the pressure has a very unique portfolio for diversifying. i think in the face of growing uncertainties, i think gold could do well. close but in the face of certain inflation, gold may not be a good choice. thank you. we have plenty more ahead. keep it here with us. this is bloomberg. ♪
>> we are back with bloomberg markets. checking in with the latest business flash headlines. this all, after the swiss blood reporter -- coming after this swiss blood reporter says there is no truth to the rumors, calling questions about a possible takeover stupid. the bank itself is delaying his chinese expansion. they have also swished back the targeted launch to 2024. they have been slowly hiring on the mainland as well.
wells fargo is the target of a u.s. criminal investigation. according to the new york times, the lender is being investigated over for job interviews with female and minority candidates to satisfy guidelines. >> take a look at chinese markets. we saw those in the morning, currently up by .6%. this is on the back of a moderating cpi coming in at 2.1%. down lower than what was anticipated. take a look at all of this reversing. investors are trying to weigh china's regulations.
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>> 1129 -- 11:29 here. we are seeing the equities being lifted up by those tech stocks as well. we are certainly seeing a reversal of the 3.1 percent fall back. that is helping to lift all the bugs there as well. the shanghai deposit is up by 1.5%. of course, there was a bit of news as we saw the price of inflation data come out about 2.5 hours ago. that is a look at the chinese markets, offer lunch. -- off for lunch. >> the nikkei 2.5 is back. it is standing here. it is about the yen pausing in
terms of his weakness, up by 2.10 -- 2/10 of 1%. we are keeping our watch on that level which would be the lowest level in 24 years. >> we are getting a look at that tech story. tech in this territory anyway with alibaba shares coming up for early brunch. we hope to break that story. that is quite something here. >> regulators have held preliminary talks to resume the
ipo. we learned that we are not working on the review and they encourage platform companies that are eligible to go public in china and also overseas. i think there are a few things, there is more than market chatter here. we have been told that regulators are thinking to accept this license very soon. meaning they are considering to issue their license which would be the first significant step for the company to go public. that would clear a path for the obstacles of restructuring and all the work that needs to follow. >> it does seem that the mood music in beijing toward tech is changing. >> after the meeting, regulators said they do support a platform
economy and that they want to support market confidence. i think the signals are all there, the regulators themselves have said this is something that needs to happen and what we are waiting for are the actual steps, the follow-ups of action to take place and what investors are really looking for are those concrete steps. didi, they really are the twin trials of this beijing crackdown that has really struggled with investment sentiment with one of the world's biggest startup scenes. >> we have had talks about opening this up and getting ready this -- getting ready with this but they have all been words up until now. >> what people are really checking right now for video
games is when their new games could be approved. the trickling of new gaming licenses are good. the giants are not out of the woods yet. when they actually get that approval, there will be another sign that there is actual concrete action taking place. >> having a look at alibaba and the tech space at large. we will have a look at politics in the u.s. and more as we get the first word news in new york with vonnie quinn. >> u.s. lawmakers investigating last year's january 6 right at the capital. the panel opens public hearings. trump's daughter, ivanka --
if the election was stolen and he was the rival president, president trump summoned a mob, assembled a mob and held the chains of this attack. >> inflation motivated in may as commodity prices eased. the cti rose 2.1%. bloomberg intelligence says this is the further preview -- pboc stimulus. it is hurting the sale.
they have issued a decree making electricity essential public service after workers went on strike. the plan was to hold off on thursday. the lack of funds mired sri lanka. the securities and exchange commission is investigating whether marketing of the stablecoin violated investor protection regulations before last months crash. sec attorneys are looking into whether the terror formed -- this sent shock waves over the phone here.
global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> hong kong is bouncing back. >> business is good. there are storm clouds on the horizon. we know it is being met with inflation. we know that the -- for the time being, things are quite good.
challenges. this way, the zero covid policy will be extended. >> our investments in china are very long-term. there are some themes that had not changed at all. this will certainly remain i in terms of the absolute level of growth. china will continue its process of economics. this is essential to facilitate the capital --
that is the role that we play. the structural growth opportunity against the backdrop. >> one final question, we are seeing more and more things from the loading and hiking rates. what is the like -- likeliness of a recession? what are you factoring in? >> we are prepared for a substantial economic slowdown. that is life. we don't think it will be a severe recession. the reason we don't think that is because it is pretty strong. we are still in a recovery
period. the financial system globally ended did things very strong. they will either act as a catalyzing or it can act as a buffer. that is what we have seen. because the financial is -- financial system is strong, we will see the inevitable slowdown. that is necessary in order to regain inflation. >> india's oldest glass manufacturer will see strong inflation mother would. we will be speaking with the company's executive chairman next, this is bloomberg.
we are having a look at what the index is telling us in the premarket. this is when cash trading does get underway. certainly we will be looking at other aspects to what is going on in india where energy and national gas prices, it really impacted the manufacturing. here with an exquisite interview mumbai is rodney. take you for joining us. give us a sense of how things are very in light of the renewed price hikes taking place. how do you deal with it?
this will be under the single sheet. there is strong demand. however, the challenge is in the production right now. >> with that in mind, either your input has gone up -- have you been able to pass on those extra costs to the consumer given what you're saying is strong demand? >> they have been able to keep
the other 65% was met by imports. it appears the installations will perhaps even double. the demand could double. let's double the production which starts in september of this year. i do not see any problem in meeting the demand. even if other players come in. >> having said that, are there expansion plans? especially on the back of your german acquisition? >> we did the acquisition of one company.
that could bring us up to 1000 a day in india. 300 a day in germany. in germany, as soon as that is complete, we are going to launch into our production of 500 tons a day over there. that could pick it up from 1500 to 1600. the next objective we expect to launch is 1000 of the day in india. >> thank you so much. let's do a check on the indian markets, it has been trending for about three markets now.
expanding the decline for the day. of course, this is a market that is being weighed on by inflation and high energy prices. >> talking of india, a cricket mad nation, that is putting it mildly. there has been a ferocious bidding right -- bidding match to broadcast indian cricket matches and we will tell you why. >> cricket, half the world is obsessed with it, the other half does not really know how it works. now, a battle between billionaires is shaping up over broadcast rights for the indian premier league. for the first time, the rights
are being sold separately and that opens the door for amazon prime. what is the big deal? india is cricket crazy. hundreds of millions of fans watch the game every week. the bidding war should be intense. in one corner, bezos, worth about $147 billion. the other is worth more than $100 billion. expect biz of $7 billion or even more. there are other challenges like sony and disney that might make it more personal for these two who are already fighting for supremacy in india has e-commerce market. winning the rights to india's favorite sport may be as much about prestige as profit. >> for once, cricket is not about indian markets down. why is it so important for amazon and somebody?
>> cricket gets a lot of eyeballs. for the likes of amazon, could they have managed to get vip rights, that is the easiest way to make this more meaningful and for amazon, if they get indian viewers hooked into amazon prime video, that would be great. just with how they managed to come to the number one position after the last ivy fight. they want to make a meaningful presence of geo-. they wanted very badly.
>> tell us about the size of this auction. this ipl is one of the biggest sports brands in the world. give us a sense of how big it is right now. >> i will give you numbers to make this understood. we will show you how this is bigger and the second point would be march of 2020. my brand was valued at 6 billion.
take a look at the board right now. it is read across the board. it declined to 1.3%. that is on the back of the yen. all of that is weighing on exporters. >> we briefly did see positivity and now we have gone negative again after that lunch break. we have hong kong schools asking kids to quarantine if there was a possible xi jinping visit to the territory. we have tech coming back in a big way. that is helping to support markets here in hong kong. daybreak middle east is next. ♪