tv Bloomberg Markets Asia Bloomberg November 28, 2022 9:00pm-11:00pm EST
tokyo, this is when berg markets. yvonne: our top stories this morning, further rate are coming. richmond tom barkan says the peak rate may need to be held longer to dampen inflation. >> its lower, probably longer and potentially higher than where we were. yvonne: also ahead, heavy police presence in beijing and other major cities deters china's covid protesters. rishaad: heavy police thwarting these chinese protests. and were getting a bit up for chinese equities, perhaps they've gone too far, too fast there as well. developers leading as the charge of policies, and it's about the fed? ? as well, is it not with the
narrative, the verbiage inching toward higher rates in the future irrespective of the pace. david: they told us that every day this year, so we can take that story and discuss that later. there's really nothing new as far as that is concern, although we might get something i'm jay powell. just the one day, that's all it took. as far as risk aversion and chinese assets, the reasonably it up, first there's the proper -- property story, up 60% now from the bottom on the back of policy support. equity markets are mostly mixed, although we are potentially picking back up on the benchmark itself. hong kong up 2%, within these markets we don't about property, and number two, the renminbi, as you can see right now, strength in that currency right now. number three, onshore commodity markets, really it's a
reflection of the reversal from yesterday. as you can see some very substantial gains there. number quote -- number four, the chinese 10-year yield up 2.9%. 3.5% to the upside here, the repricing of future growth, the re-acceleration if you will. i'll in on this, implied volume, quite a month it has been. that has created 30 day actual volatility on offshore currencies at a record on the back of markets repricing. yvonne: it's interesting because the fed discussion continues, you mentioned about jay powell. saying he does support that slower rate hike past but basically that means we have to hit that peak rate for a longer
period of time. the jobs report will be the biggest one in terms of what could sway the fed this week. if we do see things picking up when it comes to jobs being added, does that at the case for the basis point hike in december which still seems to be the consensus right now. rishaad: these protests, because of the heavy police presence we see here, we've got risk aversion going away, a bit of relief coming from the fact that there wasn't any major drama. people also looking to beijing to live some of the restrictions are ghibli there on the covid zero policy. yvonne: for more on the protest in china let's bring in our correspondent, what do we know about the nature of these
protests, are they going to keep going? >> it really resulted in a very muted response if there was any activity at all. and there is a weather element here, well below freezing in beijing overnight. but i think although the protest we've seen reflect this unprecedented venting of frustration and anger, the broader theme is this is not a well-organized, well coordinated coherent movement across the country. it's very much desperate expressions of protest that we've seen. it reflects the lack of presence at were now seeing. yvonne: it's not really a movement, and overall they only have one common theme which is just that they are angry. >> absolutely. in some places they've been much more overt with political links but in others, just calling for the end of lockdowns and the fear over that fatal fire too.
rishaad: but the thing is, the coordinated nature, irrespective of what they're protesting against. that's got to be a concern for xi jinping because it doesn't really reflect a groundswell, and where do we go from here as a consequence? >> absolutely, i think that will be the big concern. and whether we see the military step and in, how they go into rainy in control. investors, everyone looking at when covid zero will lift and will there be fallout if that is precipitated and we see it earlier than expected. rishaad: thanks for that, rebecca. back to david, and to the next investment thesis that we are
exploring. david: china is the alternative, remember that? the hb resource founder is here. there was until recently and aversion of all things china right now. is china the alternative? that's what i'm trying to get to here. >> it could be. first of all, covid zero will not stay forever. it's difficult if you tell people to .5 years how date -- how deadly and dangerous covid is and the virus has mutated in the meantime. it's not that easy to do, but it will happen eventually. i think valuations are very reasonable, and i would say in the next three happen six months. david: what would be the other alternative? >> i think the alternative would
be u.s. treasury bonds. i've been saying this for a long time and you could argue i was wrong so far. a recession in the u.s. is more or less a done deal. inflation rates are starting to come down and in the recession it will come down even more. i would say there is a buying opportunity for longer dated bonds. shorter dated bonds would be a place to hide. these are the alternatives in terms of equities, i would think that there is some downside still from here. rishaad: this is against the backdrop of a slowing u.s. economy, arguably. we have some resilience and jobs, we had more evidence of that on friday. on top of that china slow down, europe got hit really hard as well. these are major risks, are they
being priced in? >> i'm not sure, because europe is facing a tough winter. there's an energy crisis of their own making, unfortunately. and that could be tough, it will really depend on the ecb, it still starting to talk tough. they also want to get inflation under control. i think europe is already in recession, and for europe it could be tough. i'm not so sure valuations are bit more reasonable than in the united states but not would not be terribly keen on europe right now. rishaad: we've got another risk in europe and that is the escalation of the ukraine more. >> that's correct. the ukraine more is a bit scary with no one talking about peace. everyone is talking about escalation, and these things can get out of control without
anybody wanting it really. it could happen. it's not investable for us at least. david: in a stagflation scenario , the china story could be binary, the reopening. ukraine, who knows what happens there. it does seem like inflation might take a while before completely comes down. next year he might just be elevated rates. is it treasuries, what are the things might look attractive to you? >> when you go into equities, you go into those equities that are doing well in the recession, like utilities, like health care, consumer staples. the boring, defensive stuff. at some point, i think those tech stocks that have been beaten down by 70%-80%, if
interest rates start to come down next year, then those tech stocks will recover. david: what about the dollar, if rates fall further? >> it will depend on what the european central bank is doing, if they start raising rates, then the dollar could come down, which in turn would be positive for emerging markets. the dollar is the key to emerging markets. david: do you think we are nearing the end or closer to the end of the? cycle overall >> i think so, it looks like it. first of all they were slow the rate of increase and then there will be a pause, but having said that it does not mean the stock market is turning, it's usually the bottom of the bear market is not lower and it tends to be when the fed are the central banks are actually starting to ease again. david: i'm kind of tired of
talking about this pivot conversation. is the definition of a pivot when the fed actually signals are says they're about to turn, or when actually stop liking interest rates? where are you on this pivot conversation right now? >> to go from 70 five basis points to 50 basis points, they are still tightening. don't forget they are tightening into the inverted yield curve, which i would say is unprecedented. you have this situation in the past at least, you tend to have an outperformance of bonds over equities of quite a sizable amount over 12 months. so that's another argument for bonds. david: the fed has told us as much, some of them don't even know where peak rates are. is that a problem? hans: it is. it's almost like flying blind.
they have to do a lot more in a shorter time period. what we have not seen yet is the lag effect. that can be anywhere between six and 18 months. by that time you might be in a deeper recession than you think. i would argue the fed is probably far too tight right now. that adds a lot more than just the interest rate increases. david: very quickly, are we missing anything else? hans: you might want to take a look at the metals again, gold and maybe silver. silver at the moment is suffering because of recessionary feels, but i would think it's probably a 6-12 month story. david: great to see you. rishaad: let's look at the first word news, beijing and property
developers, the china securities regulatory commission saying the listed builders will be able to sell local shares for debt repayment and acquisition starting as of monday. also resuming private placements to raise funds for replacement uses. the british prime minister sunak saying the so-called era of rebuilding china relations is over, saying china cannot simply be ignored, especially on global economic stability or climate change. he did call for diplomacy and engagement. >> let's be clear, the so-called golden era is over, along with a naive idea that trade will automatically lead to social and political reform. but nor should we rely on simplistic cold war rhetoric.
recognize china poses a systemic challenge to our values and interests. a challenge that grows more acute as it moves toward even greater authoritarianism. rishaad: russia and the united states have put off a new round of talks about a key nuclear arms agreement. russia's foreign ministry saying the commission telling the new so-called start treaty will meet later, giving no reason for that delay. it will be the first such discussion since russia invaded ukraine. an increased scrutiny in parliament over the fallout from the collapse of the ftx crypto empire. the state on investor wrote down its entire investment in the failed crypto exchange. the website has been updated to say it included rounds of due diligence on ftx. that is a look at the first for headlines.
david: just ahead, china's covid unrest in terms of greed and -- grief and sympathy for the victims of that fire. we speak to a georgetown university specialist about that coming up this hour. and more of the rundown of what is happening across these markets. and the rally were seeing on chinese assets on your screen right now. you are watching bloomberg. ♪
pop a price development. yvonne: john williams taking a more hawkish stance on rate hikes. we heard from a few others in the past 24 hours talking about where they see how the terminal rate or even just the path of tightening cycle moving forward. let's bring in kathleen hays who just spoke a couple of hours ago to thomas barkan there. what were the key takeaways from that interview? kathleen: one of the reasons these hawkish comments from john williams, president of the new york fed, who is a number three in the hierarchy of fed powerbrokers, i guess, and jim bullard of st. louis fed, even will brainard who has been viewed as more of a dove lately, after the fed minutes last week, everybody said the fed looks more dovish, they are willing to taper now, and saying some of them will be more restrictive on the rate, but the majority want to see this taper now.
with john williams saying inflation is way too high, unemployment may have to go up to 5%, he says the key rate needs to be more restrictive and did not give a level, but jim bullard did, he said maybe to the range of 5%-7%. that is a bit more hawkish than he has been. tom barkin put himself squarely in the middle when he spoke to us in terms of yes, he's ready to taper and he thinks we need to be more restrictive. he's clearly worried that the risk here is inflation that is proof stubbornly high. let's listen to what he said. >> inflation has been stubborn or than i would like. i start with the idea of getting control over inflation, and as long as inflation stays elevated , it just makes the case to me we need to do more.
kathleen: let me put this in context of today, because the fed needing to slow down, also needing to get more restrictive. so why would you commit to getting less restrictive now if you are not even sure how high is going to go. and you get less restricted by slowing down the risk of rate hikes. >> you know that monetary policy works with a lag. famously they are long and variable. that means you need to be aware of them, but you can't actually count on them. it is helpful to be somewhat more cautious as you are in restrictive territory because you know what you're doing is going to affect things somewhere out in the future. that is different from not moving. i just think it's a better risk management approach to move a little slower as you collect the data. now that we've got our foot on the brake. >> but lags work both ways.
they work in terms of how quickly or slowly rate hikes make their way through the economy. if you slow down the pace of rate hikes and get a little less aggressive, you are not going to know for a while if maybe you needed to stay more aggressive, you needed to keep raising rates more aggressively. you might have to start raising them in larger gaps. >> it brings into account both where your rates are and where inflation expectations seem to be. right now inflation expectations seem to have stayed stable. and we've taken rates up to almost 4%. if inflation stays high, we will keep doing what we need to do on rates, and i will just be watching those forward-looking expectations to see how high we need to take them. kathleen: jay powell is speaking
on wednesday and that will be closely listen to. remember at the press conference at the november meeting, he said, he seemed to go out of his way to push back against the calibration of rate hikes which was coming as something that was dovish because he pounded on how important was to get more restrictive. we will hear what he has to sound wednesday and then the jobs report on friday is a big number. tom barkan said he expects it to be consistent with the labor market that is tight. they're trying to get down inflation by slowing the economy. it will be interesting to see how it affects tom's view of how restricted they need to get at the entire committee. we won't know that until december, looking ahead to the rate hikes next year. david: kathleen hays there. who is jay powell? i'm kidding. plenty more ahead.
yvonne: court papers showblockfs bankruptcy. it plans to reorganize be a chapter 11 rather than siletz up off. and the ftx founder is being sued over robinhood shares he is said to have pledged as collateral. and chair sergeant new york after results that beat analyst estimates, while revenue jumped 65% from a year earlier. the chinese e-commerce platform has been benefiting from china's covid policies as more people are stuck at home. and a special dividend around $4
billion, in exchange the dividend aims to boost market confidence and reward shareholders. that will use a special dividend to boost their stake in the company. david: i think that is helping among the many parts to this equity market, including -- including helping lift the overall tide. tiny assets just about across the board are rallying. this is the equity story. thanks china index is up 3.6%. the currency is obviously on a stronger footing, .5% offshore. you're looking at commodities higher across the board, onshore at 3% and 2.9% on the chinese 10-year yield that takes us back
to about one year highs as far as shields are concerned. there's a sense that given what has happened it might actually nudge and accelerate the process toward reopening, which won't be smooth, but obviously the orientation does seem in that direction and markets are betting along those lines. rishaad: in a couple of cities closely looking at the problems they're causing with the zero covid policy. it is a covid conundrum, a hard choice. officials facing what happens with the lockdown and what happens in terms
protest so there will be a very tough crackdown. >> the chinese government needs to get out of the current policies, they are not working. but the question is,? ? can do it quickly enough >> they were probably go further in terms of control. >> i think there are fundamental issues here with china's growth prospects as well as doing trade with them. >> there is likely to be challenge going forward. >> the efficiency, the skilled workforce that china has, so for the time being there is no replacement for china. rishaad: our guest weighing in on the china outlook amid these rare public protests. we've got a night of protests being thwarted essentially by
heavy police presence is around the country. chinese shares a rebounding, the hang seng up now over 3%, taking its gains now for the last -- since yesterday to 1.5% gain in the last two days. the kospi in the plus column, if you will. the shares on the way up with the exception of japan, right now the fed very much in the heart of things. also the chinese bond picture as well, very much also at the four. david: you mention japan, one stock a been tracking closely today is eisai, down the most in about 16 months. following this report of the second death potentially linked to this groundbreaking experimental drug for
alzheimer's, shares are down. yields on the tenure, 2.9%. last time we were here roughly was about a year ago. in underscores that markets are repricing what growth might look like next year, certainly the direction of travel does seem to be toward reopening. we can debate how long it takes us to get there and what growth looks like on the back of that story. let's bring in paul dobson, he is our executive editor for asian markets. here we are, markets are rallying again. paul: it speaks to that longer-term faith that investors now have in chinese markets and the potential for rebound. we saw a lot of money coming in in recent weeks, even as the covid cases escalated and spread in the lockdowns started to come back as well. my colleagues on the other side
of the break are asking why are markets behaving this way? i think it is that long-term-short-term disconnect. investors are looking to the rise in and moving away from covid zero in time. the day-to-day developments, almost a secondary concern for the sort of money were seen coming into the market. people are keeping the faith essentially. david: with the fed reminded us constantly that they will tighten, it seems to be the least bad option, especially when you get news on property, listing sentiment. paul: and the reason we are seeing those higher bond yields, the market taking confidence from the idea that the stronger developments would be able to raise funds in the onshore equity markets to consolidate, the distressed assets that are out there in the property space, to get the market going again. or even to rescue some of the
more distressed companies out there. so that's looking very positive for the market as well. all these little signs together is a cumulative kind of momentum signal for investors, like you said, when chinese stocks are still so cheap, it's working like a good option for next year. david: paul dobson join us here in singapore. the latest case numbers were out , 38 thousand new local covid case numbers. breaking it down for you with some of the hotspots. and it frames the conversation around reopening here. yvonne: it certainly does, and where the protest will go and how it plays out in the next few days as well. things have quieted a little bit on these big cities. let's bring in james from
georgetown university who follows and very much comments on issues regarding the city. thank you so much for joining us. what lessons are we learning when it comes to china? this covid zero strategy was a signature policy and president xi jinping. he was striving to be the go to role model in finding covid, and now we are seeing protests in the streets. what is this tell you about where the covid strategy will go? >> the zero covid policy may have reached the end of its political viability, because we have people turning over the barriers, going out and upsetting testing huts in the streets of beijing. patients has really worn thin to the very end. they can send the police out as they've done today and lockdown subways to keep people off the
streets and rest demonstrators, that the only viable option i think would be to relax the zero covid restrictions to some degree. yvonne: james, these protests were triggered by that fire, this was the place where we saw one of the most stringent sorts of restrictions when it comes to covid zero. how is it different there versus what we see across china? james: well, the lockdowns and the quarantines went on for longer than anywhere else, over 100 days, since the summer. and they were very widespread across the entire region. from what we can tell, they were implemented even more strictly than in other places. that means people were locked into their compounds for longer periods of time.
doors were sealed and entryways locked up. there were many reports from the weaker people that they were running out of food in their apartments. it's very hard for journalist or anyone to get in there to know about this. but we saw similar things in shanghai, so as not at all surprising that this would be going on there. and the fire that was the catalyst for these recent waves of protests all across china. that fire took place in a part of the capital of the region that is mainly uighur. the authorities did not announces but it is clear that people all over china or most people were aware that these victims of the fire, at least 10 but maybe as many as dozens of victims, were uighurs themselves, and there were tragic stories of a family, a
mother with children who died in this fire. rishaad: james, is it a miss conflation to look at the crackdown in that province and connect that with zero covid policies around the country? james: of course when you say the crackdown, looking back five downs to the mass interments of over a million uighur people to forced labor initiatives which we all heard about which brought sanctions to the region from the international community. the connection now is being made in the minds i think of the protesters who are aware that uighurs are involved, maybe not explicitly, but they know that these policies of locking people up in their homes or separating people from their families to go be quarantined in a different place, of following people
around, digital surveillance and using your cell phone as a way of controlling movements, all of these things which are used for the zero covid policies are actually technologies and techniques that were pioneered for this crackdown, for this repression of the uighur people. some of the same companies that have been rolling out the software platforms and the camera systems and others are some of the same companies that are involved. rishaad: i want to get a sense of where xi jinping goes, in his new year's address he was flexing and touting how he had saved china from covid by his actions. now you've got him perhaps caught in a dogmatic trap where he cannot move from that. what is the deal with him, how has he been damaged by this, if at all? james: well, i don't know.
that will remain to be seen. it seems as if perhaps some of the protests are calming down. if he is able to see the problems with doubling down on zero covid and begin to release some of these restrictions, to let people out of their apartment blocks in the main cities of china, then he may whether this we may not see greater effects. but i think it is quite remarkable how quickly the rhetoric of the protesters changed from first of all grief for the uighur victims, and then secondly, release us from covid restrictions, to then very quickly to calls for freedom, for democracy, for elimination of censorship and those kind of things. in a way people have sent a message to the party and to xi jinping.
rishaad: james, a pleasure having you on the program, thank you so much. let's have a look at the first word news. south korea's government order striking cement truck drivers back to work. the government sending the ordered during a meeting by the president, pointing to the threat to the economy. drivers who refuse to return to return to work will face legal action. is the first time the government has used powers based on government actions from 18 years ago. christine lagarde said she would be surprised -- suggesting the recent ramp-up in interest rates will be continued. she doubled our rising interest rates and saying the strong labor market will likely support higher wages. >> by reducing people's real income and pushing up costs for firms, high inflation is
dampening spending and production. high uncertainty tied to financial conditions and weakening global demand are also weighing on economic growth which is expected to continue weakening for the remainder of this year, fourth-quarter, and the beginning of next year, first quarter of 23. rishaad: opec and its allies are expected to consider deeper supply curves when they meet this weekend. then announced a 2 million barrel a day cut back. delegates from the group say additional reductions could certainly be an option. that's a look at the first word headlines. we'll have a lot more, clues and that rising feeling for equities. this is bloomberg. ♪
yvonne: a bloomberg school, a source tells us turmoil at an apple plan has led to production shortfall of close to 6 million iphone pro units this year. our guest has more on this. tell us what the latest is, and is the 6 million a moving target, depending on how many workers come back to that factory? peter: yes, very much so, it is a moving target.
there have been lockdowns and protests at the complex for several weeks now. workers have been struggling with a covid outbreak and then the managers there and the local government officials have him -- imposed a number of restrictions at of calls a lot of problems, including food shortages that the complex. many workers just gave up and went home after that. they've been struggling to get enough people into the factory to keep production going, given the constraints of the closed loop system. a source told us that apple and foxconn expect there will be a shortfall of about 6 million units, as you alluded to. 6 million units of the iphone 14 pro which is the higher end device and the ones that are now most in demand, apple has since a softer demand for the lower in products. it could cost them quite a bit of revenue. as you say, it is a moving target.
the number of lost iphones could go up if they are not able to get things back on track pretty quickly. david: and if that close relative of mine is listening, i'm sorry, there goes your christmas gift, i can't get you the latest iphone. but seriously, is there a longer-term implication for apple in foxconn, because we know it is causing a problem short-term, obviously. peter: there is. the world's biggest producer of iphones, it's critical to the health of the world's most valuable company, but apple and foxconn have been working on alternatives. they've been looking at different places where they can produce iphones and other kinds of apple devices. in particular, india has emerged as a pretty important alternative for producing
iphones. apple with foxconn's help in some of its other partners is trying to build up their capacity in india so they can supplement what they are doing in china at this point. the problem is it's very difficult to move these extremely complex manufacturing systems out of the country like china on short notice. so it will probably take years for them to build up real, legitimate alternatives to china. yvonne: there are questions about the relationship between apple and china. does china need apple more arduous apple need china more? peter: foxconn is the largest private employer in china. it is very important to the economy there. apple is also providing a lot of jobs to china to be able to build up the factories there. many people have connected the dots that this may be one reason the beijing government has been
gentler on apple than it has on some of the other american companies that operate within that territory. but for apple, they need to look out for their long-term prospects and be able to have some alternatives to what is going on in china right now. david: peter with the latest bloomberg scoop. he will continue to keep us updated on all the developments. just ahead, speaking of a developing story, crypto, ftx and everything in between. $10 billion and what that might mean for recovering assets that might be delayed. an update on that story is next. this is bloomberg. ♪
what went right. essentially this wasn't exactly unexpected because there is been a close relationship between blockfi and ftx. start with what we know about blockfi, before the crypto winter got underway, this was a company that was valued at 3 billion dollars, quite sizable. essentially overnight it followed for bankruptcy and has a petition in with the court in new jersey and court proceedings going on in bermuda. is trying to understand the contagion and correlation between the firm and the crypto industry. the problem started back in may because it took a big hit, $80 million from the collapse of three arrows capital and then ftx offered a lifeline to the company. they basically offered them a revolving credit facility where
they control $400 billion worth. that came with the option to purchase the company but of course with all the concerns with ftx they have not been able to draw on that at all. that's why we also see ftx filing that today. yvonne: where are we now in terms of the contagion and what should we be watching out for next? >> i spoke with the ceo of a blockchain analytics firm and ask him, is this the first inning or second, are we halfway through? he said he feels like we are near the end, but one company we spoke about his genesis, then they said when you take a look at that you can see this is another company that's very exposed with what is going on with ftx. they said there were a lot of transactions going on between genesis and ftx. rishaad: you've got the assets and liabilities valued between 1 billion and 10 billion.
that's a big discrepancy there, isn't it? >> we don't know how much they really have, and i think that really does talk to, even though you have essentially an asset class that is supposed to be transparent, that is the nature a blockchain. these are centralized entities and we don't really know what's going on with their balance sheet. that discrepancy tells us what we don't know so far. new look at the cash on hand, it's not very high. yvonne: and we have singapore, the government facing that hearing or potential parliament grilling over this as well. bloomberg has learned apple faces a production shortfall of about 6 million iphone pros. sources say it depends on how fast foxconn can get employees back on the assembly line. they have struggled with the
workforce for weeks because of covid. elon musk accused the iphone maker of threatening to keep them off the app store. must assess apple has cut advertising on twitter which he acquired last month. users say they continuing to see its ads on their feeds. the chinese e-commerce platform has selected banks for an ipo in hong kong as soon as next year. it has been seeking to raise about $500 billion at a u.s. ipo last year but pivoted to hong kong as beijing cracked down on its firms listing overseas. rishaad: the hang seng doing great yesterday, it's up about 3.1%. property companies have chinese stocks being supported by these developers. developers ramping up liquidity
support for them. it's an industry group that settled by huge amounts of debt and represents 35% of the chinese economy, so anything in line with them to raise money is going to help. lifting the hang seng and beyond. david: the bulls are out in their bermudez. asia is up .5%. the dollar is down, yields in china on their way up. commodities are rallying. it's a story of fervent risk appetite may day here in asia. plenty more ahead. this is bloomberg. ♪
millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today. hi, i'm katie, i've lost 110 pounds on golo in just over a year. golo is different than other programs i had been on
because i was specifically looking for something that helped with insulin resistance. i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. golo has been more sustainable. i can fit it into family life, i can make meals that the whole family will enjoy. it just works in everyday life as a mom.
in singapore and shanghai, welcome to bloomberg markets asia, i'm haslinda amin. rishaad: i'm rishaad salamat. chinese shares rebounding from the protest selloff, led by developers as beijing offers liquidity relief to the sector which is laden with debt. the bump coming despite more hawkish federal reserve talk. the richmond president telling us interest rates may be held longer for hire. demand going into the holiday season and ayala's growth outlook for 2023. haslinda: asia rebounding after that selloff. traders taking comfort that unrest is easing, but fed officials saying rates may be going higher. keep an eye out for the powell speech on wednesday. take a look at the benchmark csi
300, the hang seng in positive territory, we are seeing gains for the property sector. liquidity getting pumped in by the government. also, the government making it easier for financing for property players. fti also higher by about 1%. in the india space, it is about weaker dollar, down 6% over a period of two months, providing support for asian currencies. the asian yuan up .5%, the won up .7%. in the commodities space, optimism with china back in focus, iron or up about 2%. rishaad: a relief rally, you see chinese equities moving higher. taking a look at the hang seng, being led not just by property but also tech involved, nearly
4% up, shanghai comp also getting ground. the hang seng off the back of the lack of any drama off the back of covid zero protests as we did see police out in force, but i suppose is providing an element of relief. places like beijing are looking to loosen some covid restrictions, the reopening basket up nearly 4% now. let's get to our hong kong correspondent, a bit of relief but it is short-term? >> markets are really didi. they almost need reassurance on a daily basis that the reasons we had the november rally, the pivot on covid zero and property developers, though they are there, they are not going away. that's what we had, no trauma on the protest front.
but authorities are rolling back restrictions, and also communicating those plans. communication is a really important part when you have needy markets, communicating that the plan is still in focus, the plan to support the property market is still there. we've also got a huge piece of news on the property front that china will for the first time since 2015 allow property developers to sell shares onshore in order to use that money to buy real estate assets. that reduces default risk for the sector, a lot sooner than expected, and a pretty significant move. needy markets got what they wanted and you are seeing the reaction today in hong kong. haslinda: how much pent-up demand is there really for chinese stocks? they have become less investable since the party congress.
the insurgencies still remain. >> they are still there, but the world is incredibly underweight china. it's been almost two years of selling. you see what happens on a day like today, the volume is higher and the moves are sick of can. that's because there is so much money on the sidelines, that when you do see a rebound, the money chasing that is incredibly huge. today's expiry day for hang seng index and china enterprise open-ended, so we could see volatility and rebalancing around that. rish was talking earlier that the hang seng tech space is one of the biggest players for one reason other than flow. that is that kind of entry we will get into december, expect more of that as we enter the last trading weeks of the year. rishaad: do your point, we have
hang seng volumes double what they would normally be. our bloomberg chief china markets correspondent. we have the federal reserve as ever with policymakers expressing that they will be raising borrowing rates to further curb inflation. we had the richmond fed chief talking to us exclusively on daybreak asia. >> very supportive of a path that is slower, probably longer and potentially higher than where we were. >> further tightening monetary policy should help restore balance between monetary supply can bring inflation back to 2% over the next two years. it will take time, but i am confident we will return over a sustained period of development. >> really that's just getting up to the long run neutral level of policy right. we've only recently moved in
restrictive territory, and we're going to have to move farther to keep inflation under control. haslinda: let's now bring in chief rights correspondent for asia, garfield reynolds, fed officials loud and clear saying rates are going higher. is there a since markets have been underestimating rate prices? >> that was certainly what fed president bullard was saying. he specifically said, he thinks markets are underestimating the task ahead for the fed. it was very noticeable that new york fed president williams called out the idea that inflation is into something to be complacent about. he said it is still far too high. there were four fed officials that spoke the past 24 hours. all of them made it clear, they are concerned about inflation
and rates need to go higher and stay high. when you look at what markets are expecting, they are very much looking for yes, higher, 50 is priced in for december, and then a bit more at the beginning of next year. and by the middle of next year, the fed is looking already to cut rates going into the second half. when you look at the way your forward curves are positioned, so that's a picture that is a very stark contrast to what fed officials are signaling. and of course, we get german jay powell later on in the week, who might bring more of those relatively hawkish comments to bear. rishaad: garfield, have you ever been in a situation in a developed country where you have got interest rates moving higher, inflation high, and the
employment situation incredibly healthy, and we find out more of this on friday? >> one of the things that makes it difficult for fed officials on the market is we're coming out of this extraordinary period that with the pandemic caused a lot of disruptions to the normal way of doing things. it also spurred a astonishing amount of monetary stimulus to be ported to the economy. that helps explain why you get that situation. it also explains some of the buoyancy in equities when you've got people warning about a recession coming. that's extraordinary to see equities when the fund
market is warning that a recession is coming. we have strong labor market that is driving the expectation the fed will go higher, and be able to stay higher longer than people expected because in order to avoid a wage price spiral, they need to take the heat out of the labor market. they have even said that you need to see a fairly serious increase in the unemployment rate. until you see a noticeable comedown in the labor market, you can't expect to see the fed stepping away from a hawkish stance. rishaad: always up earlier, -- a pleasure, our chief rights correspondent and mliv contributor. moving to become a narrative and beijing's response, let's get the first word news with vonnie quinn. >> chinese authorities have deployed heavy police presence
to avoid a repeat of the weekend protests over antigovernment measures. shopping malls were closed early and pedestrians were stopped regularly for identity checks. the ecb president christine lagarde would be surprised if inflation peaked. her comments suggest the recent ramp-up in interest rates will continue. at a conference, lagarde doubled down on raising rates, warning about high inflation and that the strong labor market likely support -- will likely support higher wages. >> by reducing real income and pushing up cost for firms, high inflation is dampening spending and production. high uncertainty, tighter financial conditions, and weakening global demand are also weighing on economic growth, which is expected to continue weakening the remainder of this
year, fourth quarter, and the beginning of next year, first quarter 2023. >> opec are considering deeper supply curves when they meet this weekend. prices have fallen, erasing this year's gains. delegates from the group now say initial reductions could be an option. 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'm vonnie quinn, this is bloomberg. haslinda: still ahead this hour, we will have early-stage venture capital firm elevar equity to talk about some of their investments, including a unicorn. rishaad: we're going to be speaking exclusively to ayala's new chief executive. this is bloomberg. ♪
haslinda: welcome back. the philippines government says it is on track to meet its gdp growth target, and make reach the top end of its 6.5-7 .5% goal. let's get the business perspective with the ceo of ayala, the oldest and largest conglomerate in the philippines, he joins us as close of late for his first interview since taking charge two months ago. you were pulled out of retirement to lead ayala, was a surprise? cezar: from the golf course on a sunday to work at 7:00 the next morning, i was absolutely surprised. haslinda: a banker by
profession, how is it like leading a conglomerate? cezar: the skill sets are very similar. between banking and private equity, the skill sets are quite useful for leading a conglomerate. so, it's been an easy adjustment. haslinda: under your leadership, what is the strategy going forward? cezar: i want to take advantage of the growth of the philippine economy. this economy has been amazingly resilient. this quarter, we will be back to where we were pre-covid. that's on the strength of consumption, which is back to pre-covid levels, government spending which is in excess of pre-covid levels. however exports are lower than precode levels, investments are lower than pre-covid levels. just think of what happens to this economy if exports and investments get back to pre-covid levels, that's the
next booster growth. what we'd like to do is make sure ayala is well-positioned to take advantage of that boost to growth. we think we have the portfolio to do that. haslinda: can you clarify on opportunities you see under the current administration? where would you be investing in more? cezar: the current administration is very focused on investments, which makes a lot of sense because we have a consumption led economy. and investments have always been a smaller part. so, we have to focus on that. when you look at our portfolio, it is those sectors which frankly command a lot more investments. in the banking sector, for example, where we continue to build in real estate, or we will continue to rollout a lot more e
states and build our leasing business in telco's. we are continuing to build the tech side of globe, and real estate. we will be adding investments into an economy that sorely needs and vestment -- investment and taking advantage of this next ramp-up in growth. rishaad: give us a sense, looking through the business as it stands, which you think are the weakest and strongest parts of the corporation? cezar: our core businesses are all pretty strong, number one and number two in their sectors. it is probably the most digitalized big bank around, it is growing market share, 12% loan growth, growing deposit market share.
if you look at globe, ernest and his team have done a phenomenal job. right now, as the core business begins to look much more mature, they are focusing on the tech side of the business, gcash and everything else that is tech. and look at renewable energy. this is a company that did not exist 12 years ago, and now it is one of the leaders in the region. not to mention ayala land. our core businesses are in great shape. we've got smaller businesses that continue to grow. the health site is very important to us. covid showed us the nation is under invested in health. there we will continue to digitalized that business, we have a super app that will produce revenues quite soon.
and on the logistic side, covid has told us that logistics is very important, so we are looking to invest there. rishaad: there are certain parts, you mentioned fintech with gcash, do you plan to take that public? do you have other parts of the corporation that you wish to take to market as well? cezar: there is a lot to value in gcash. the question the folks that are running it are asking themselves is when do we realize that value? gcash the longest time was just in the payments space, now it is into loans, insurance. so, there is a lot more growth potential in gcash. i think we have time, i will leave it to the management of
that group to decide if and when we will take that public. as for the other companies, the conglomerate's fairly large, the companies have a lot of units underneath each of them. there might be an opportunity to delayer some of that. but we will take that one step at a time. rishaad: that brings us to the smaller parts of the business as well. haslinda is going to ask you about ipo's and the like as well, but which are the particular parts which need consolidation? which are the ones which you may not even want to consolidate, but exit out of, for instance, water which you have already done? cezar: they are fairly large companies, but in relatively fragmented industries.
you could argue that the slower companies could also use consolidation. those are very fragmented industries. consolidation hopefully will come, and then the question is, if you can consolidate these smaller industries, well the values be large enough to move the needle for our company? i think there might be a couple of those industries where the values are large enough, there might be some industries where they aren't, and those we will have to rationalize. haslinda: you talked about how you are leaving it to ernest and team whether to ipo, but will it make sense to within six months? cezar: value is growing every single day. they are already dealing with over 70 million filipinos, there is a lot more product throughput there.
does it make sense to realize value eventually, of course. but they have done such a great job, this is an amazing company, i know better than to stick my nose in it. haslinda: i'm just wondering about consolidation plans, are there plans to wear more assets in the next 12 -- acquire more assets in the next 12 months? cezar: bpi is growing its market share organically. bpi grows the equivalent of a small bank every year or two, that's significant. the robinsons bank deal is really aimed at creating a partnership with one of the most respected groups in the country, and probably the third-largest conglomerate, and we're off to a
great start. rishaad: bong, very quickly, what is the highlight of 2023? 20 seconds. cezar: we're building an echo system in electric vehicles. we're going much more digital, much more green. those are the highlights. it's basically digital, green, and shared value. when you look at digital and green, it automatically translates to more shared value because you can go to a much broader market. you can create much more social value, that's got to be the highlight of our year. rishaad: bong, thank you so much, even though that was 33 seconds long. [laughter] cezar consing from ayala corporation joining us about the company, the philippine economy, and more. you're watching bloomberg. ♪
♪♪ energy demands are rising. and the effects are being felt everywhere. that's why at chevron, we're increasing production in the permian basin by 15%. and we're projected to reach 1 million barrels of oil per day by 2025. all while staying on track to reduce our carbon emissions intensity in the area. because it's only human to tackle the challenges of today to help ensure a brighter tomorrow.
rishaad: markets up 3.7% now. then you measures to give liquidity to these property companies helping them to the upside. casinos again in focus, just having a look at and seeing what they are doing because it is another day of advancing stocks there with regards to all this. galaxy one of them, up 2.3%, wynn macau also, this all off the back of recessions being renewed for macau gaming companies. it is one where greater china
stocks are hoping to leave this part of the world. haslinda: china providing some relief after that selloff we saw yesterday. pre-much green for the sti in singapore, up about 1%, in the fx space, the dollar is weaker, easing in a significant way, the index down 6% from september highs. expecting to see the dollar weakened through 2023. the won up by more than 1%. keep it here with us. this is bloomberg. ♪
we have got shanghai and shenzhen going on their lunch break with stocks of the way up. shanghai comp index to percent up. broad-based gains. technology among those stocks on the climb tech stocks are erasing the losses we saw. property companies, those developers, debt-related companies having a great time at the moment country garden up 10% as we had the various relief measures being put into race for them. giving them greater liquidity. giving them the ability to raise money when they have had very little opportunity to do so. so there we go, they are off for lunch, and tokyo traders are coming back from theirs. haslinda: china property developers are up 60% this month alone. talk about going getting baxter's. -- going gangbusters. we are keeping a close eye on
the yen, 138 and 51. it has been rebounding after tumbling to its weakest level in 40 years. it has recovered 10% from multi decade lows. 138.47 is a level we are seeing now. for now, let's get the first word news with vonnie quinn new york. vonnie: south korea's government has ordered striking cement truck drivers back to work. the government issued the order during a cabinet meeting led by the president citing a threat to the economy. drivers who refuse to return to work will face legal action. it's the first time the president has used powers under legislation enacted 18 years ago. russia and the u.s. put off a new round of talks about a key nuclear arms agreement. a state department spokesperson tells bloomberg that moscow postpone the meeting. the commission handling the new start treaty will meet later today, but give no reason for the delay. it would have been the first such discussions since russia invaded ukraine.
the u.k. prime minister says the so-called golden era of british relations with china is over. in his first major foreign policy speech, he said china cannot simply be ignored, especially on issues such as global economics, stability, and climate change, and he called for diplomacy and engagement. >> let's be clear, the so-called golden era is over, along with the naive idea that trade would automatically lead to social and political reform. nor should we rely on simplistic cold war rhetoric. we recognize china poses a systemic challenge to our values and interests. a challenge that grows more acute as it moves towards even greater authoritarianism. vonnie: hong kong will ask gina to determine whether overseas lawyers can be part of national security trials after a successful government attempt to
bar a u.k. lawyer from defending a local dissident. the 75-year-old goes on trial and faces a possible life sentence, if he is convicted of colluding with foreign forces. 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. rish. rishaad: thank you very much indeed. cheney's regulators are wrapping up degree support. this is what we have been talking about in terms of helping equities move to the upside, this coming about after we heard authorities have been pulling a piecemeal approach that fails to reverse the slump they had been witnessing. so now, they will be allowed to -- allow listed builders to find that repayments and acquisitions and how will this move the dial? our next guest is from bloomberg intelligence and covers real estate. how does this pave the way for an equity raising measure? does it go far enough to get
them out of themire they are in? >> it's quite the opposite. property equity raising will be new in china. you have strong developers like country garden, the soes, not in a rush to raise equity as valuations are still low. they have access to debt financing which is going to buy them time. on the, other hand you have the deeply distressed developers. so this rule change is good to have, or we don't think it's going to make a huge difference now. haslinda: we know that regulars have been ramping up liberty support for the sector. which particular developers will gain from this? kristy: so, the stronger property developers are the biggest beneficiary of any pretty boost. country garden, 200 ¥50 billion
of credit lines, some of them are able to issue bonds, as well as access to presale funds. this will take away the short-term liquidity worries of these names. but longer-term wounds still need a turnaround. haslinda: ok. with the escalation of covid cases in china and protocol -- and further hurdles to home sales recovery here. kristy: if you look at november, guangzhou home sales are down 50%. the bigger cities are feeling the name from the covid resurgence and that will weigh on the home sales recovery that the market has in expecting. if it comes, it will be an
l-shaped recovery. and a week property market remains a dragon the entire sector. haslinda: thank you so much for that, kristy hung. still to come, in-depth understanding of balance sheets is key to elevar equity's financial success. they're managing partner will be joining us next. keep it here with us. this is bloomberg.
haslinda: let's look ahead to key stories that investors are watching in india today. the r.b.i. will oversee the auction of state bonds worth $1.6 billion. the state bank of india board meanwhile, is set to seek approval for raising infrastructure bonds. plus, adani enterprises is seeking shareholders for a share sale. trading starts eight minutes. nifty futures pointing to a lower open, down 0.2%. rishaad: and stay with what is going on in the country, we have the venture capital market very much in focus with our next guest leading investment strategy in india for elevar equity.
it is an impact-focused fund, an early-stage venture capital company. managing partner jyotsna krishnan joins us now. give us a sense of what you do differently to other vcs, and how impact plays a crucial role, specifically where. jyotsna: thanks for having me, it is great to be talking about this subject to a broader audience. we have been investing for about 15 years, so clearly seeing more than a cycle or two in the markets, and our focus is really emerging markets, more specifically india and latin america. two very different markets but connected by a customer segment. i will say, this customer segment is not that well understood because it is massively underpenetrated and it has seen massive shifts over the last two decades. we focus on customers that have
smaller wallets, but massive aspirations, and look at companies that are building businesses to sell these customers. these are typically households that have multiple income streams, really aspirational about their futures. . so things like preparing their children for better education, making sure they have access to quality health care, growth aspirations for their businesses whether in agriculture or in running a small business, all of these are close to their hearts. and for many years, they have really in dependent on informal markets -- they have been dependent on informal markets. and it is a really exciting space when they come into services that are formal and institutionalized for the first time and designed for them. if i look at how did we are different from other vcs, we are super fundamental in our approach which means our journey starts with spending time with the customer segment, understanding how they make
purchasing decisions, how they make investment decisions in their lives, and that is what sizes up the market opportunity for the next decade or two. and we move on to find phenomenal entrepreneurs, very strong execution track record. rishaad: we have a lot to get through, so i just want you to give us a sense of, ok, you have impact investing. that often gets mixed up with esg. they are different things, though they do share a commonality. give us a sense of the spaces you are looking at now, you mentioned health care, that was one you talked about, an education as well? jyotsna: yes, so, esg -- impact investing is a term that emerged a decade ago. esg has been a more recent popular trend. esg has gotten popularized and marketed over the last few years, but i will say it's a
mixed bag in the sense that, the demand for esg and the frenzy which has more emphasis on the environment and sustainability, has ended up surpassing the supply of esg assets and investment opportunities, and therefore, it is a space which is yet to be figured out, both by investors and by companies. where we focus on impact is on customer segments that are underserved. focused more on equalizing the word from a people standpoint. households that i speak about our seeking quality solutions, and incorporate india, mainstream services have not yet delivered products to them in a way that they can consume to their satisfaction. that is the exciting part about the market we are invested in, which is the impact investing side of things. haslinda: you talk about impact. you have to talk about profit as well. how do you balance purpose and profit for real impact?
jyotsna: that is a very good question. the biggest secret behind ensuring that we don't have misalignment is to make sure we are taking care of incentives for all stakeholders. many does expect a return, and so long as serving the customer segment generates efforts for the business and takes investor returns as well, you a the stakeholders, and that is how we ensure you are able to scale successfully. . it's important that customers value what you provide and are willing to pay for it. that is where the journey begins. if you create something of value, customers pay and it leads to shareholder interest being taken care of as well. it's a simple formula. haslinda: venture capital funding has eased somewhat in recent months. the outlook, going forward? jyotsna: to be honest, the space we operate in is very fundamental. our investment is not as dependent on gritty flows,
because we have a -- on liquidity flows. we have a customer base, hundreds of millions of households that are willing to spend as long as you of them something of quality. these are cycles we have seen in the last 10 years, we have seen multiple cycles driven by driven economic issues but those are less impacted by what is happening in china or with crypto-currencies or that there is a war going on in the world. if a mother wants to send her child to school, the decision is not affected by these factors. so in the sense we are a bit more insulated, we are long-term investors and less affected. rishaad: a bit more brevity, you have a lot of companies you are invested in, give me two or three that you are most exciting and what they do. jyotsna: one of them offers a school and above solution for private schools, and they make quality education accessible for these households.
focusing especially on language schools. samunnati is forced on agriculture, they provide capital and market linkage for a former that cannot negotiate against large corporates. these are extreme a customer focused businesses. cloudphysician focuses on services in smaller towns and cities, to get quality health care that is not available in these places. haslinda: lead is already a unicorn. which others will be a unicorn next? jyotsna: [laughs] unicorn is a certain metric. our customers together have transacted tens of billions of dollars within these companies. we are excited by the transactions from customers within our companies as well as their valuation metrics, to be our last. rishaad: it's interesting, looking at your blurb, as it were, that two-thirds of your partners and directors are actually women. how do you think that informs
the way you look at companies, in the areas that you invest in? jyotsna: it's an interesting question. we didn't go out looking for majority women on the team, and i think gender dynamics is one aspect of diversity. if you are trying to make a difference in the world, he automatically end up seeking diversity and that is how you look for the best talent. there is a massive shift on the ground as far as gender dynamics and diversity concerning our end markets. the voice women have on decision-making, whether purchasing on education, or health care decisions, or irca culture is huge -- or agriculture, is huge. these shifts will make a difference in how our economies make out in the next decade or so. haslinda: it has been a pleasure, jyotsna krishnan, elevar equity. thank you so much for your time today. staying with india, its newest financial hub is rising from scrubland in the state of
gujarat, and soon set to host 20,000 employees. gujarat international finance tech city is its official name, better known as gift. ever south asia managing editor joins us next. what is so special about gift city? >> good morning, haslinda. gift city is a space where many of the roads and government doing business in india -- hearing business there does not apply. one of the core concerns investors have been india is that the rupee is not fully convertible. of course for local policymakers, the reason the rupee is not fully convertible our pretension. they want to safeguard livelihoods and prevent bullet. gift city is one place where you can trade the rupee freely and that has allowed policymakers and different ranks to offer
products that until now would only be offered in places like dubai or singapore. these are hedging products. so a lot of interesting things, interesting financial assets that could only be offered abroad can now be offered on the soil of india. haslinda: apart from that, how else is gift city different? what can investors do in gift city that is different? jeanette: until recently, for example, indian companies could only go and lease airplanes, for example, from abroad because policymakers have carved out gift to be a free market, there is a design of products where you can now release an airline and give this sort of business to indian companies. if you do it via gift. there is legislation been changed to allow forward universities to set up local
compasses if they route it via gift again. it allows them to bypass a lot of red tape in the country. the plan is to create it into an operations center where disputes can be resolved at the seed of business. there are a lot of developments that policymakers are excited about, but the one thing to remember is that there is a lot of political capital backing gift. the project is a flagship project of prime minister modi. he conceptualized the project when he was chief minister of gujarat state. and now he is prime minister so there is a lot of policy and political will backing this project. rishaad: what are the challenges facing gift? i don't want to be too flippant, and that is gujarat doesn't allow alcohol and many young executives, they like a drink. you also had the lack of a city infrastructure.
give us a sense of what they have to be in the future to get this up and running properly. jeanette: what he financial hub, when you think about it or singapore, you think of the bars within these races, of everything he could do after you finish work, you can grab a drink with your mates. gift currently doesn't allow that infrastructure, it doesn't have that sort of critical mass. currently there are 20,000 employees. policymakers, authorities that we need to that the critical mass will be achieved when gift gets 50,000 employees. how do we get there? finance is historically capital-intensive, not necessarily labor intensive. authorities are betting that as more and more of these nonfinancial companies, talking about consultants and lawyers, we will see the number of people within gift rapidly increased. we will see that social infrastructure being built that actually links to the financial
hub. we will see more people moving to the streets. they are already beautiful gyms that people can use, the roads are beautiful, they are wide. they lack a lot of the crime that indian cities are known for. it is just that we need people to come to gift and that is what policymakers across kenya are working toward. rishaad: jeanette, always a pleasure. asia managing editor jennifer rodriguez there. we have five minutes of perpetrating getting underway in india, we are looking up positivity but only just at the moment, and it is really against the backdrop where the rupee is flat. indian stocks have seen a rally up to near record levels. frequently taking a breather next year, a breather because of the valuation picture that currently is for those equities. that is a look at that indian open. there is a lot more on the way. you are with bloomberg.
this after the sunday night protests with security very much at the fore. we are seven minutes away from the lunch break. let's have a look at the latest business flash headlines. block-fi sold 230 million dollars of its own cryptocurrency in the run up to its bankruptcy. it wants to reorganize via chapter 11 is of selling itself off. and ftx founder is also reported to have been seen selling robinhood shares. p and war were shares surged after earnings beat estimates. -- pinduoduo shares surged after earnings beat estimates. the chinese e-commerce platform has been benefiting from china's strict covid policies as more people are stuck at home.
this giant is planning a special dividend this year of $4 billion. it filed a filing saying that it aims to boost market confidence and also to reward the company's shareholders. they will use the special dividend to boost their stake in the company. haslinda: let's get to markets, take a look at how asian crypto shares are doing. nexon and hanwha are all in positive territory. some in negative territory, it has to do with the ftx fallout. it has not been abating. blockfi filing for bankruptcy. and mark mobius telling us is bitcoin falling to 10,000 in what he calls a dangerous market. we are keeping watch on eisai, and alzheimer's debt company. that is after in-depth report. it has managed 8%.
and we are looking at career rocket companies on the back of spacex, rocket launching south korea's first mission to the moon. korea aerospace surging more than 5%. hanwha aerospace is up more than 2%. there is a lot of optimism, even the unrest in china is abating. rishaad: in just a look at what is happening in hong kong. three point 8% up, lifting those equity markets. philippines the anomaly. well, that is a look at this rarely. lunch is upon us in hong kong. this is bloomberg. ♪
- [announcer] imagine having fuller, thicker, more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music)