tv Bloomberg Markets Asia Bloomberg October 2, 2022 10:00pm-12:00am EDT
this is bloomberg markets. yvonne: our top stories, oils surging after opec-plus considers cutting output by more than one million barrels a day at this week's meeting in vienna. that is giving a boost to commodity-length currency, even as bets are raised of further market intervention. plus, chinese property stocks getting a lift after beijing tells its biggest state owned banks to provide financing worst at least -- worth at least $85 million. rishaad: sentiment, not one where we are going to see much in terms of ultimately risk being put on the table. looking at that column, the nikkei is up now, we have a hong kong market which is in a bit of a turnaround. hang seng about flat, in fact, absolutely flat. we are looking at what is going on with some commodities with the prospect that we are going to talk about with yvonne about what happens next with this meeting coming up. i think it is the first time in
two years or thereabouts we have had an and person meeting. yvonne: yeah, face-to-face. the fact we have an in person meeting perhaps means something will be happening. what we are looking at is maybe output cuts, so maybe that helps with the demand picture or maybe the supply side of things, and maybe doesn't move the needle to address this drop in prices we have seen of late as global demand starts to weaken. so you're seeing when it comes to brent, here is the curve, 3% gains or more or so this morning during the asian session. we will see how this plays out. also watching euro stoxx 50 futures which are turning around, as we see sentiment get a little more optimistic here this morning. there is a lot to do with the credit suisse story, so there is plenty hanging on a lot of traders this morning. but yes, also a lot of fed speak we have had to digest the last few days. rishaad: the narrative changes,
we look at what is going on with federal reserve speakers, it is always about nuance. what we have right now is a slight variation into this team they have all proposed almost in unison about going hard at it and showing unflinching resolve. now i debate -- now i debate is creeping up and it is about how fast they go. that is what we have at the moment. yvonne: you have to think where sentiment is, there's so much bad news being priced in already. you are seeing oversold conditions in many markets. the dollar also looking stretched. his the fourth quarter where we are going to see maybe some change? things are maybe looking a little too bearish.
where history is concerned, stocks have had fourth-quarter drops only three times in the past 20 years. i know this is a different backdrop from what we are talking about, but maybe history could be on our side this time around. rishaad: let's see what mark cranfield makes of it. ultimately, what are we watching for today, as the third quarter, a quarter many would like to forget, is over with? mark: initially, traders seem to come straight out selling everything in pretty much the same mood they were at the end of the last quarter. it is a new p&l period so they have fresh positioning. they are still bearish. it is a good time for them to take positions early in the month and a quarter. but some things are pretty oversold already. you have had two bad quarters in a row, a bad year for equity markets in particular. so certainly some people might
be looking around for some bargain-hunting. and we have the u.s. earnings season that begins at the end of next week. and the big banks may be able to deflect some of the weakness we have seen across markets. they will be in a good position to be able to tell if the u.s. economy is as strong as the job numbers tell us. and they might be able to benefit from some increase in the u.s. as well. so maybe some people are hanging back and waiting to see what comes out of u.s. earnings for the third quarter as they start to come through. that could be laying a part in this. the u.s. dollar is already strong. so again, some people might be reluctant to push too far ahead of that. then we have the u.k. as well. chancellor will be speaking later today in the u.k. and the pound was causing a lot of eruptions last week.
people will be looking for direction. there are plenty of reasons for people to be more cautious before they make the next big move. but the bottom-line is traders in general find tv or -- find it easier to jump on negative stories. and it needs very positive news to change their mindset the next couple weeks. yvonne: take a look at our question of the day as you talk about the dollar moves. do you think the dollar will continue to dominate performance in the fourth quarter, and risk -- and which risk asset will perform best? mark: we are not too far from a point where the dollar is becoming a problem for many countries around the world. so far the u.s. has been very quiet on this matter. they have not said anything that would suggest they are ready to talk the u.s. dollar down. but you can see plenty of other countries have responded. japan, taiwan, south korea, just some of the people already concerned the u.s. dollar is too
strong. even china, to some extent. so we could be getting to a situation where in the next couple of months, few other countries pressurize the u.s. to try and get them on board to do something about the strength of the u.s. dollar. but that might not even be needed if the fed -- we have a story running on bloomberg today, suggesting the fed people are considering at what level they should pause. we have two more fed meetings this year. if we get two more 75 basis point increases, the funds will be at the target level for the dot plots were put in in september. so if they rush rates to 4.5% by the end of the year, then there's legitimate reason for them saying they can take a pause, and it will be slightly negative for the u.s. dollar. yvonne: mark, thanks for joining us. you take a look at what the week ahead has in store, it is about
a lot of central-bank decisions. rba, rba and z -- rbnz. now we have some signs governor lowe is starting to price in the pivot, or a leastt hint this is where they are going. opec meeting in vienna, that will be a crucial one. we have inflation numbers out of korea, thailand, taiwan, philippines. and in the u.s. jobs report. rishaad: aussie dollar, 63, now 64. but nevertheless. always great to see you. is there anything which can possibly right now halt this, i am not going to say king dollar, but i have said it now. anyway, the strength of the dollar. >> in terms of the framework on the dollar outlook, what are fx
team highlights is there are two key things they are watching. they want the fed rate hike ex petitions to peak and they want the rest of the world's growth to bottom out. on the fed rate hike expectations, as far as our forecasts are concerned it is pretty much there. but when do we see the rest of the world growth bottoming out? in terms of our team's forecast, we have that happening in the first quarter of next year. that will be led by china. china's outlook is pretty much depended on whether and when they make the transition to living with covid. yvonne: you are saying this is by far the most important policy tool that they have? how quickly do you think things could improve once they do reopen the borders? chetan: so, we think that they take their policy decision in two steps. after the party congress, we
think they will guide the nation in terms of having to make that transition. they could make a proposition by the fact that now the virus has diluted itself, they have the vaccines, they have postinfection treatment, they have made the arrangement in terms of hospital capacity, and therefore they need to make the transition. so we would hear the policy statements indicating that they need to make that transition in and around november, december. we would also look for it an -- for an additional campaign for picking up the vaccination rate in the elderly population. then make that transition more nationwide sometime in march or april. what we are also watching very closely is whether they are going to allow the mrna vaccine to be distributed within their own country. we have heard over the weekend, as you guys have covered, that it has been launched for emergency purposes in indonesia.
rishaad: ok, you mentioned indonesia and the region here. we look at southeast asia in particular, you see the depreciation of various currencies. on a trade-weighted basis, it is not really playing out, is it? because ultimately these goods that are exported are cheaper in dollar terms. chetan: essentially the reason why we think that this is not 2013 or 1997 for asia is because the macro stability indicators are in good shape. unlike 2013, which is the recent cycle, before that there had been huge missile locations in asia. most governments had taken up large fiscal expansion. central banks were running negative real interest rates. current account deficit were rising and inflation was rising. we don't have that kind of situation right now. we do have some rise in inflation, but that has been
largely driven by higher commodity prices rather than domestic within asia. you are seeing asian currencies, while they are depreciating against the dollar, on a trade-weighted basis they are pretty much flat in this cycle compared to 2013 or 1997. yvonne: so, that leaves a lot of questions about what central banks in the region can do. is it just fighting a losing battle by hiking rates continuously, or are they going to do something more to trying stabilize their currencies? chetan: we think the central banks in the region have now gained some monetary policy independence, and they are going to take their decision on the basis of domestic growth and inflation dynamics rather than depreciation. of course currency depreciation does have some effect on inflation, so to that extent they have to consider currency depreciation. but to the extent that our analysis shows the past exchange
rate depreciation is not that significant. we think both the policy decisions will be based on the mystic growth on amick. in considering we think asian central banks will take policy rates much closer to neutral rate rather than having to go into deeper restrictive territory, like what we are seeing in the u.s. the side effects of that will be that the currencies will be depreciating, but it's going to be much more manageable compared to what you are seeing in europe and u.k. yvonne: i was going to get there. should we expect then dollar pain to create more, i guess, of a challenge for d.m. versus e.m.? chetan: as far as currencies are concerned, yeah, our teams are expecting further weakness in asian currencies. they are calling for dollar -- it will rise to 118 by year end. so there'll be an impact on asian currencies and we expect modest appreciation across the
region. yvonne: chetan ahya from morgan stanley, he is staying with us. and of course we will flesh out that call for him, saying how they will start fading away from covid zero. yvonne: going to -- rishaad: 3% up thus far. yvonne: let's get to the first word news with vonnie quinn. vonnie: brazilian president bolsonaro heading for a runoff election on october 30 against leftist candidate lula da silva. lula took 48% of the vote versus bolsonaro's 44%. the outcome still puts the former president within reach of another stint at the home of latin america's largest economy. confidence among japan's largest manufacturer has unexpected leave worsened last quarter, making three straight drops as the yen tumbled. the boj's index of sentiment across the country's biggest
manufacturers declined to eight, and economists had forecast a gain to 10. japan moves to reopen its borders. u.k. prime minister liz truss says the controversial decision to remove the tops tax rate was made by her finance minister. she told the bbc her administration should have laid the ground a better for the announcement. a sources is the chancellor is privately trying to head off a potential rebellion, with at least a dozen government mp's planning on going public with opposition to the plan. >> i stand by the package we announced and i stand by the fact we announced it quickly because we had to act. but i do accept we should have laid the ground a better. i do accept that. vonnie: russia has suffered another operational defeat in eastern ukraine, casting doubt on its plans for total annexation. several thousand russian troops withdrew from lyman over the
weekend after being surrounded by kyiv forces. the town is a key logistics hub for moscow and it comes days after the kremlin announced of a -- rishaad: let's have a look at what we have coming up. a closer look at a fast-growing talent in recruitment staff, speaking exclusively to the glints cofounder and ceo. yvonne: brazil's presidential election has for a runoff. the latest on unexpectedly tight race. this is bloomberg. ♪
golden week. it is also being seen as a crucial test for consumer confidence and closely watched for signs of economic recovery. certainly on these other public holidays we have seen not the kind of mass tourism. we have seen a huge fallback in tourist numbers and spending. there we go. yvonne: might not be too good this time around. there's been, obviously the borders are shut, they are not encouraging domestic travel too. so, yeah. rishaad: how does that affect things? chetan ahya is still with us. ok, we're seeing big falls in the number of tourism, tourism spending. that is not the only leg the economy is on. we have the housing crisis. all of this creating arguably a big headache for the ruling party. give us a sense of how this is playing out from an economists point of view.
and we cannot ignore the lockdowns. chetan: right. there are three things affecting china's outlook. one is the slowdown. we are expecting dm growth to be below 1% over the next five quarters. that would mean asia and china's exports will be weak. over six he percent of chinese exports come from sme, so there will be a job implication out of this. then the second problem is the property sector. we are hearing a lot of action being taken by the government for the property sector, but that is a complex problem and it will take time to resolve. so the only policy lever the government has is the transition with covid and consumption, which is a proportion of gdp. it is in that context i was mentioning earlier that they are going to have to make that transition. look, the pushback we get is the
government has been managing it so far, and what is the trigger? the trigger is if you look at two important stats related to the chinese labor market, one is the youth unemployment is running around 19%. the second is the wage growth, if you look at the household income growth, that has decelerated to just 2.6% on a year on year basis. it used to be 8.5%. so, we think it's in line with the government's objective to achieve prosperity by reviving economic growth rate with this transition to living with covid. yvonne: maybe beyond just china, we see some kind of turnaround next year with covid zero, what kind of economies are you looking at that might benefit from that reopening? are there particular economies you think are more resilient or more vulnerable in the next year to come? chetan: in general, i think independent of china's covid
policy decision, i think the economy that is standing out in the region is india. secondly, i would say indonesia. those two countries are doing extremely well, because they think -- because -- and if china does get through to this transition, the economy said to benefit the economy is the north asian economy. korea, taiwan, then japan are the three more exposed to china. yvonne: some lines that are crossing when it comes to sony, they are betting big, set to target 2 million playstation vr2 units by march of 2023, according to our sources and our reporting. that is quite an ambitious outlook that defies what we are seeing globally. rishaad: no official price yet.
do not have a release date yet for thispsvr2. just slips off the tongue. current plan is to sell it early next year. the supply chain has hampered the availability of the playstation 5 console which was launched in late 2020. yvonne: there are a lot of offerings out there when it comes to vr goggles. how sony fares in all this, pretty interesting. apparently they have not faced any supply chain constraints yet. plenty more ahead. this is bloomberg. ♪
the scene in rio de janeiro. 11:24 p.m. there. that's the incumbent president of brazil, jair bolsonaro, speaking after he just came shy in the runoff election against lula da silva. it's going to a runoff after lula fell shy. yvonne: it will be a competitive one. goldman saying the runoff polls are key for the runoff direction. your latest business flash headlines, rwe has agreed to buy consolidated edison for $6.8 billion in one of the biggest ever green energy deals in the u.s. it will almost double their portfolio to more than seven gigawatts. it sparked criticism from one activist investor.
dubai has set a new property sell record with a mansion selling for more than $82 million. the luxury home is still under construction and will feature eight bedrooms, 18 bathrooms, a cinema, a boling alley, and underground parking for 15 cars. property prices have risen in dubai over the past year as they seek to attract more ex-pats. coinbase says that fixed an issue which prevented the company from processing transactions for more than five hours. the company tweeted it was unable to take payments or make withdrawals involving u.s. bank accounts. rishaad: quick check of market wise. this is a look at some supplies in ev companies that supply to tesla. global deliveries missing forecasts in the third quarter. it is affecting the supply
chain. nevertheless, let's not accentuate the negative and say that deliveries are still at a record. consumers switching to receive these -- switching towards ev's. yvonne: opec-plus considering cutting output in their wednesday meeting. brent and oil and wti all up. not seeing a lot of upside, but you are seeing oil fuel services up 2%. coming up, more about the big cut opec-plus is considering. an update is coming up next. this is bloomberg. ♪
with fiscal prudence. >> i don't think the u.k. has much foreign currency. >> i am confident that u.k. will come through this. >> might need some central-bank ordination. >> yvonne: is the spot index trading higher or lower from now. it's going to go higher from here. king dollar here to stay. oil getting up pop on opec-plus,
cutting more than one million barrels a day. let's bring in our energy reported. guest: you look at the economic slowdown and there is room to cut. saudi arabia is much tighter. with oil around the $80 level. that is not priced correctly. there is a fear of recession in the u.s. and around the world which. demand for oil products, this is
the first major cut in 2020. to do this, one million barrels a day,, that is a lot. opec has been struggling to hit production targets. maybe only six opec-plus members will have to do cuts. not being able to increase the supply. all of us together provides more volatility going forward we saw the pop today. rishaad: was there a supply glut?
ukraine is pushing the eu to pledge help. i ran says it's closer to recovering billions of dollars due to u.s. sanctions. state media [indiscernible] the biden administration denies any link between the issues. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.
last week. the ceo issued -- drop into the bloomberg, you get an idea of why this bank they were struggling for survival. then you had a number of ceos. the current ceo was trying to assure staff, sending regular updates until they could issue the official turnaround strategy. again, if you look at the bank a
year ago, it had a market cap of $22 billion. the ceo was named in late july. this noise is going to get louder. rish mentioned last week the cost of insuring bonds against default climbed about 15% to levels not seen since 2009. rishaad: talking about capital ratios being healthy. you look at the price, what is
the main takeaway? reporter: they're concerned about the crisis of confidence, although there are some differences. they looked at the plans, a lot of focus on the stock. yvonne: thanks so much for the update. it's interesting, if you take a look globally speaking, but the european story aside when it
this is not among the small start up. coming up the pandemic the bandwagon. there has been a huge surge in demand. outside of the region, china is not interested in expanding. rishaad: that must make for high salaries. that's where you come in, don't you? guest: we see rising tech salaries in the region. not only relying on local talent
supply. companies will be recruiting teams in asia and taiwan. there is an interesting trend. yvonne: you talk about how covid restrictions in greater china and hong kong. we are getting talent sucked out of here. to southeast asia have the capacity and jobs to kick in? guest: see a lot of influx of talent, and oftentimes singapore as well. you see the capacity and southeast asia regional management tends to be different
markets in philippines. this is been a big trend. rishaad: when you see this, you can get true cross-border work and a much more constructive fashion. with that in mind, is it tech lacking? guest: great question. we see it tends to be senior tech talent. over the past two years, the junior tech talent ecosystem has been developing quite well.
what that means is a lot more demand, the market development teams such as asian and indonesia. yvonne: we have seen tech layouts globally. all of the recession risks, how bad is the tech layouts situation now? what your take? guest: we see some belt-tightening in the market on the ground, layouts and slowing down hiring. sentiment has been bullish, one
we're excited about opportunities in the market. there is demand for regional recruitment in the region. rishaad: thank you so much. coming up, we are talking sony. yvonne: rolling out vr headsets as soon march. our coverage of that is coming up next with some ambitious targets. this is bloomberg. ♪
yvonne: bloomberg has learned sony plans to make 2 million units of a vr headset by march next year. let's bring in our asian tech editor. that 2 million number, how big is it? reporter: in the grand scheme, it seems like a slow number. because it's unproven territory, it's big. it took eight months. it's going to launch in the new
rishaad: the price -- let's have a look at the markets. it's a mixed picture. not a whole. yvonne: you are seeing some upside with japan, hong kong, china is closed, korea is close. we are considering -- continuing to seek dollar moves, all about oil markets, opec is considering cuts when it comes to output on wednesday. plenty more ahead. stay with us. this is bloomberg. ♪
rishaad: oil is surging. the biggest cuts since the pandemic began. scarce risk sentiment. rebellion doing in the u.k. conservative party over controversial tax cuts. haslinda: investors on edge, concern remains, on top of that could impact earnings as well. adding to the stress we are feeling in the markets. taking a look at the benchmark, we have a holiday in sydney.
china on golden week holiday. hung same under a lot of stress. the issue is earnings. easing in the mighty -- central-bank meetings this week, in the commodity space it is about brent, almost 3% right now. opec saying, it is considering a cut of one million barrels a day and it could be much worse than that if you see a recession coming in the market.
big banks have a lot to say on the outlook for the real u.s. economy. they may support the view of what you are seeing is a reflection of was happening, certainly there is reason to be more cautious with risk assets over the next couple of weeks. haslinda: watching the rbnz. indication of when or where rates will peak. that is some guidance we are looking at? reporter: traders could take
that as an early warning sign. the rbnz to saying they are pretty close to the end of the hiking cycle, traders could read that that the fed is not too far behind. new zealand in particular is first in, first out when it comes to rate cutting or rate hiking. there are preconditions we could extrapolate from whatever we could see for the g10 markets in general. it suggests inflation things are coming under control. certainly, anyone in the g10 space as a central-bank meeting coming up. it's far more important. traders are willing to look at everybody, everybody has a part
opec will consider cutting one million barrels a day when ministers meet on wednesday. let's bring in andrew james. this could be a reflection? reporter: that's right. one million barrels a day. perhaps the magnitude is a bit of a surprise. people were preparing for cuts. it's having a big impact on the markets today.
the eu ban on russian oil may complicate how the market as well. rishaad: you take a look at the supply and demand dynamic, we don't know how much russia is selling currently. what about iran? could we resolve it and get a deal done? reporter: there is always a possibility that can happen. there has been periods where people iran has oil stored on
military setback. let's get to vonnie quinn. >> the annexation is in question. several thousand russian troops are in lyman. thank you logistics hub for moscow. the u.s. is set to provide $1.5 billion. congress there is long-term aid for the conflict. ukraine there is a runoff election. 30% of the vote. both full and short of the majority needed. [indiscernible] another stent -- liz truss says
[indiscernible] thousand of mp's going public. >> i stand by the package we announced. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haslinda: still ahead. india central-bank delivers a half-point interest rate hike. predictions and more. rishaad: capital markets tell us the dollar strength in emerging
war in ukraine. haslinda: the concern is em currencies. guest: policymakers are not happy with the instability this is sparking. pressure on asset prices in recent days. not happy with the underlying dollar appreciation. local currency weakness. relatively tough framework in emerging markets, major economies across the world. i don't think the bank of england will be the last
the government bears much more responsibility for the development across markets and we are not going to see sustained easing, it does not look like the latter is going to happen? it's going to be an interesting few weeks. rishaad: also, we have the jobs report at the end of the week. inflation numbers. we're seeing if you cracks in the united face of these fed officials, perhaps edging toward how quickly we should be raising interest rates? guest: it's interesting that has snuck into the fed rhetoric.
we're starting to get indications of policymakers. the market is going to be more sensitive. numbers have been very strong, we start to see softness in the data, the market will start to price and the eventual pivot from fed policy. haslinda: one question. it is about risk management. guest: you have to stay defensive. stay long dollar against a range of currency that are particularly vulnerable given the likelihood it will be a
not have the robustness of the u.s. is a real issue. we have to figure out how to go further. we tend to focus on interest rates, particular what the fed is going to do and credit risk. economic conditions, etc.. that is something we need to pay a lot more attention to. >> the bank of england, driven to intervene. we saw the boj have to come in, support the japanese yen. the ecb is ready to put this further.
can we get into that equilibrium? >> that is a major question. these interventions are temporary. the global economy is not clearing on its own. when you distort an economy for so long, is by definition problematic. if we don't, they will be more problematic. all of you looking for a pivot, be careful what you wish for.
the journey is a very painful journey. rishaad: bloomberg opinion, must. let's have a look at the business flash headlines. credit suisse ceo asking investors to deliver a turnaround strategy, saying the bank is at a critical moment. [indiscernible] evaluating the potential for limitations of the hack. worldwide deliveries missing estimates, blaming challenges as it continues to ramp up production. it was a record number of cars delivered while falling shy that
the market was expecting. haslinda: on the back of tesla missing delivery estimates [indiscernible] still to come. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year.
the palm benchmarks, the hexagonal .3% to the downside. this is the opec-plus meeting, one million barrels a day would be on wednesday when they meet in vienna. earnings season. haslinda: some investors pinning hopes on the upcoming earnings season to help fuel a year and rally, could equities get a boost? annabelle: that is the hope.
a lot of stocks are looking very oversold. rishaad: other strategists are pessimistic. annabelle: jp morgan put a note out on friday saying there are growing risks from central banks , he is one of the most vocal bulls on wall street. the assumptions are central banks could avoid a policy mistake, that there will be a de-escalation and perhaps that is not the case. let's take a look at the terminal chart, taking a look at bond yields.
tensions do not particularly help. >> we heard liz truss sticking to the plans. she said it was his decision for the tax cuts on the high income earners that cause rebels to come out in force. the tory party said he might not vote for that, he might lose the with. we are seeing rebels. this comes ahead of the tory party conference which might be
slightly uncomfortable for liz truss, we saw the budget announced just over a week ago. mp's questioning where the party is going next. you are absolutely right. the chairman of the tory party said if they voted against the policy plan in place, they could be kicked out. that could be big news for those trust. -- liz truss.
delaying income tax until next year, not have it in november, keep pushing the budget and grow the economy in the long run. it is damage control right now. i must say, a lot of mp's are going to the conference. i am often in touch with tory mp's. i must say, a lot of them have not wanted to talk to us and have discussions at the conference. rishaad: thanks a lot.
get into the first word news. >> opec might cut one million barrels per day. ministers meet in vienna on thursday. iran says it's getting closer -- state media says funds will be released after a u.n. announcement. [indiscernible] the biden administration denies any link. a billionaire has reached a settlement with the student who accused him of rape.
global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haslinda: results presidential race will go to a runoff after a tight general election. reporter: the election is headed for a runoff between the former president. the outcome showed a much now are lead. paul's indicated a gap of 10 percentage points. the election will likely have profound implications. bouncing between global demand and standing, convincing that
delivering a third straight half-point rate hike. shielding the economy. our next guest is expecting a series of hikes. the hsbc chief indian economist joins us now. is the are b.i. raising interest rates. guest: it will be more about inflation. it adds to inflation. there are many inflation pressures, commodity price shock
in march. we are seeing wheat and rice prices rise. primary focus is inflation control. rishaad: if it's inflation control, have you seen inflation coming in and the next few months? have we seen the worst of it yet? guest: it's not going to be a pretty print. we think it will be 7.2%. the target is 4%. higher than both of these. hopefully by march 2023, inflation will be under 6%. over the next couple of years,
that's what they have done. today, the rupee has dropped 10%. weakness possible from here. they can't intervene as aggressively as they have over the past couple of months. haslinda: is growth a priority? guest: they increased the growth forecast which is honestly a little surprising. i have not been optimistic about growth being as strong as it is right now, after october we will
see exports like mobile handsets, drugs and pharma, and we are finally seeing signs of volumes slowing, especially in july. that is not great news for growth. we don't have -- growth is going to slow and come back. beyond that, there is a lot of growth concerns. haslinda: how are you assessing the risk? oil prices are rising, opec
saying it may cut production, could that be the risk your factoring in? guest: it's been volatile. it is hard to take a clear stance on the back of oil, oil had fallen, even that would be higher than pre-pandemic levels. we are not getting too much comfort from the commodity price cycle, we have had a bad monsoon season, earlier in the year we had wheat fright -- price, we have had not a good vegetable crop. there are tensions. my sense is given the volatile commodity prices, therefore food inflation is not good.
rishaad: thank you so much for joining us. the hsbc chief indian economist. five minutes of trading for indian markets, let's track -- check-in. down arrow story. liquidity concerns coming through. looking at energy companies looking a little bit better than one would imagine. a lot more is on the way. this is bloomberg. ♪
haslinda: welcome back. saudi is said to be planning to hundred units of a playstation headset by march next year. sources tell bloomberg mass production of the virtual-reality bundle will begin in september and has not faced supply chain constraints. general motors president says autonomous vehicles remain resilient despite current macroeconomic headwinds. speaking exclusively with bloomberg, they see light at the end of the tunnel when it comes
to the chip shortage. >> the supply chain costs -- we're seeing some of that as well, on the supply side, the supply is very fragile. it's our job to get more efficient to offset those costs. rishaad: a surge in chinese initial public offerings. let's get to david. is this a function of the ipo side of things in china or more of a slowdown? david: it's a bit of both. equity markets have had a bad year, you are seeing a major slowdown.
china has slowed down quite a bit less. there -- they just edged out goldman sachs. first time since 2009 a chinese bank has top the tables at the end of the quarter versus a wall street bank. haslinda: i was wondering how much of a boon china could get. david: they are working on ipo reforms. i would say you could also see a rebound in the rest of the world. gigantic ipo market. as things start to come back, i
think citic would struggle to maintain its lead, there have been global depository receipts, it is not just the china market. rishaad: very quickly, a lot of money is going to switzerland. david: the biggest one in china would be an agenda that is quite huge. that is certainly the biggest bear. haslinda: thank you so much for that. let's do a quick check of where markets are. jitters, earnings outlooks and
questions. the nikkei is up 7/10 of 1%, strong dollar taking a breather right now, the kiwi is up by hatha percent, in the commodities space, it is about brent crude. opec-plus mulling over a cup of one million barrels a day. then you have it. that is it from bloomberg markets: asia. daybreak middle east is next. keep it here with us. this is bloomberg. ♪