tv Bloomberg Markets Asia Bloomberg September 27, 2020 10:00pm-12:00am EDT
financial affairs. headlines say he has paid little taxes. china's top developer tried to reassure creditors and fears of debt and default. they insist their operations are built on firm foundations. yvonne: that stocks certainly having a jump here. on those statements from ever grant. -- evergrande. we still have that friday follow-through from the u.s. tech rebound. that is encouraging. we are a touch higher as well. perhaps we are seeing the worst for that correction. we take a look at chinese stocks. we only have about three days of
trading there. we do see the asian tech. the more leading indicators that things are looking a bit more bouncy. all of about 1% here this morning. we are watching the dollar strength. have we reached the peak in the dollar. things are looking a little bit overbought right now. dollar-yen still seeing some strength. we did see that weaker fix in the pboc. we are watching the bond market as well. pushing back a rate call. you have jp morgan saying it is time to save the bond rally.
those debts seems to be going back a little bit now. iron ore seeing a decent bomb. today. haslinda: president trump's ban tiktok has been blocked by a federal judge. dealing a blow to the government in its showdown with a popular chinese owned app. they say threatens national security. we have been following developments. take us through the very latest. ruling from the district court judge's in the east coast. gave that decision blocking the proposed banned by the trump administration. tiktok had requested preliminary injunctions.
he deliberated on that. he had a virtual hearing with the parties earlier on sunday. then gave his decision. place inas set to take a couple of hours from now. that will no longer be the case. there are two executive orders on tiktok. this is on the first one. which the ban would take place. there is a second executive order. a 90 day. that is for the sale. by novemberompleted 12. that would be after the election.
what is important about this , they did away with the ban on the first injunction. that november 12 ban must still go through. tiktok has made a statement saying they are pleased with the court injunction on the van -- ban. they will continue to defend the company's rights and maintain ongoing dialogue with the u.s. government for a deal. this is strike two against the trump administration. last week, and another district court judge issued a similar injunction in favor of we chat from tencent, which was also under fire from the jump administration on national security grounds.
yvonne: many top chinese tech companies being targeted by the trump administration. far ase they raising as security concerns around the company? >> they are concerned by alleged ins to the communist party the military of china. semiconductor manufacturing international, the largest ship company in china, has come out with a statement saying it has not received any official notice. they denied any ties to the chinese military. they said it does not make products for any military users. or uses. it is not an addition to the entity list. i was placedt huawe
on, which required an outright ban. this required u.s. companies to apply for an escort -- export license. of a softer blacklist, if you will. people with the film -- familiar with the situation said the trump administration still has the right to toughen those restrictions, if they so desire. yvonne: that stocks certainly reacted to that news today. shares down 5% today. let's get the first word news with karina mitchell. karina: president trump has reportedly paid very little tax since entering the white house. the new york times says that is largely because he reported losing much more money than he made. continuing as
decade-long audit on the legitimacy of a $73 million tax refund that he claimed. >> totally fake news. i pay taxes. you will see that. the irs does not treat me well. karina: the president is seen pushing the supreme court farther to the right. heralds a bitter fight in congress. a 6-3ld make it conservative split. democrats say it should wait until after november. china is tightening its grip on the western province of chin zhang. xi says communist party policies are corrected must be adhered to over the long term. that millions of
ethnic uighurs are being held in reeducation camps. says a much-hyped travel bubble with new zealand could open by year end, as infection rates in both countries remain low. new south wales reported no new infections over the last 24 hours. u.s. infections rose in line with the seven day average of global cases near 33 million. deaths are about to top one million. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell, this is bloomberg. still ahead, work from home, the office, or a combination of the two? we discuss more of what being in companies managing partner said.
>> for the past three weeks. we don't think people should buy such stocks. based on our estimates, it appears to be completed. the buying of global equity by .edge funds regardless what they do with discretionary. they keep equity around it. since september, the hedge fund has stamped only these excessive holdings.
possibly theout impact of the election in the u.s. in november. how are you pricing in election volatility risk? higher volatility could possibly scare some investors. talking about the nasdaq market. they are running out of things. if the nasdaq moved back closer. they will be more likely to favor buying.
is a soft landing here that we could see in the future. let's get to our question of the day for all of our viewers. we have seen correlations breakdown. it seems like the regime has shifted right now. gold surging. emfx. china versus all of these correlations are breaking down. how do you see them playing out against different asset classes in the coming days? recent fracturing of correlation across the market is due to the unwinding of segregated positions. and confusion around the presidential election.
let's talk to our chief washington correspondent. somethingoking like that biden is bound to capitalize on. debatefirst presidential scheduled for tuesday night. no doubt, tax policy will come up. republicans are using this as an opportunity to talk about what could be a better economic plan for the country, with lowering taxes. been a case that has been in and out of court ever since the president has taken office. welcome -- will presents this as an opportunity for their tax policy vision for the u.s. either way, this is coming at a time in which the president has said he is willing to make his tax filings public should the courts rule on that. in other big news over
the weekend, it has been the nomination of amy coney barrett, the just assume it is now heading to the supreme court. this was not unexpected. how much of a shift will it be for the legal direction of the country? withjust got off the phone someone in the top administration who says they have hit a political home run. the confirmation hearings are set to begin in the next 10 days or so. those confirmation hearings will be happening in the final days up into the november 3 election. they are confident because they think in battleground states like michigan, wisconsin, pennsylvania, this will help them with catholic voters. this could help them with suburban women. and that it could motivate the base of the republican party to get out and vote. she is seen. . as a staunch conservative much
more akin to the justice she clerked for, scalia. democrats are trying to use all of their political power to slow down this process and also trying to activate their base. it is a remarkable, fascinating time. this has implications for trump and biden but also for whether or not republicans are able to regain control of the senate and whether or not democrats are able to expand their majority in the house. we will be following all of this carefully and no doubt it will come up on tuesday nights debate. haslinda: biden is set to have the upper hand. what should we be looking out for? look to see how the supreme court justice plays out. that will come up.
i will be carefully monitoring the geopolitics of this. how will joe biden talk about how he would deal with u.s. allies, not just from a military perspective, trying to unify the western alliance against china, but from an economic standpoint with regard to trade policy. biden and trump obviously worlds apart on how they would renegotiate radios. look at the shift in that debate. with either candidate. this is the first time they will be going head-to-head for 90 minutes, no breaks. there have been a lot of jabs traded before this. this is without question an incredibly important date for president trump, who trails in key battleground states. folks thatonvince his handling of the pandemic was something that he has to defend.
he is trailing on how he handled it. yvonne: i am sure we will be watching your coverage on wednesday morning and tuesday evening. let's get business flash headlines. oil prices have little room to rise in the next few months. covid-19 continues to hurt global demand for energy. conventional wisdom was that things were going to improve in the fourth quarter. renewed travel and social distancing restrictions, plus state aid is dragging on demand. named the newhas leader to push through one of the biggest restructuring programs and its history. reins from thee outgoing leader. he has a reputation for tough cuts.
he will need to oversee a turnaround. some breathing room for asian stocks. modest gains at this point in time. has rising virus cases. theal stocks on course for first time since march. pointing to a higher open. india posting a 2% gain. taking a look at china, up for a second day. chinese companies going for a fourth consecutive month in august. sewing -- showing signs of being oversold. here are some stocks we are tracking. currently slumping about 4.5%.
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karina: president trump's threatened ban on tiktok has been blocked by a federal judge. anedance had implied for injunction, saying the ban was irrational even why talks of the sale are still on the table. the administration has said tiktok poses a national security threat to the u.s.. china's economic rebound is continuing with industrial profits growing for a fourth straight month.
similar gain in july. profits year to date are still 4% lower than 12 months ago. nancy pelosi says there is still a chance her and treasury secretary steven mnuchin can agree to a package. she said democrats may vote on a house only version. she is pushing a $2.2 trillion fund. president trump does not want to go higher than 1.5 trillion. malaysia's ruling coalition has continued its streak of election victories. it is crucial as he fends off the opposition leader. he could ultimately pave the way for a nationwide snap election. global news, 24 hours a day, on
air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. yvonne: we are seeing decent bidding here across the board. saw was the worst week for emerging markets and smarts. we are seeing a decent bounceback. ahead toso looking this big event. the first presidential debate happening. chinae a lot of data like pmi and u.s. jobs to end the week. we are seeing some decent gains in china, taiwan, some of these tech heavy benchmarks like the kospi. other words, it is a dollars story that is still playing out.
a lot of bidding into the aussie dollar. strength coming through your japanese yen. let's take a look at some of the movers we are looking at. lender its stake in the to 8%. we are seeing the stocks make a decent bounceback. mind, it is still a 25 year low. evergrande as well, it seems like the company has been able to stop the selloff. they are both rebounding today. as well as the financial situation. well, the australian government extending support for domestic lights in australia. talk of melbourne using some of
those curves. bain and company says 70% of white-collar workers are now working remotely. while one third of those no reduction in productivity, more than 40% to deal their productivity has dropped. specializes in working with them. he joins us from san francisco. thanks for joining us. tell us more about the survey. what are your clients telling you about the lessons learned of this pandemic? what does it tell us about the future of work? >> i am happy to be here.
it starts with the white-collar workforce. they have been continuing the work at company locations. it was the pivot of the white-collar workforce for first half of this year. it is coming back in a few countries around the world. they have found that they have been able to migrate work exceeding our expectations. from these virtual, remote platforms. more than we expected. we have all had to adjust. we are doing that. there is a reasonable amount of variation. by the mindset of the individual employee.
large, we will see what happens. as we get out to the other side. not just for advisory services like yourself but for retailers. is that equally good for everyone? is this way of working better for certain businesses versus others? how can you tell? isi think what you will find it will be a large variability in how it actually works. for different job functions. different mindsets based in your own situation. if you look at what happened to , there are things you want to buy via e-commerce and there is still things you want
to go to a physical store for. is now applying to actual professional work. clearly you can do better. some things you need to be able to have the physical interactions. the deep relationship building. the collaboration that requires physical proximity. what you are finding is each company will have to adapt to a world that will not be the same as it was last year. it will be a mix. we will find work with meaningful adjustments.
some of it is not just the nature of the different jobs. it is the mindset of people. some people are enjoying working from home and find they are more productive. another group think they are less productive for different reasons. its own has to create portfolio. haslinda: let's pick on productivity. the pandemic forced everyone to be productive in some sense. companies already wanting their workers back in the office. what is the best model to maintain productivity and build resilience at the same time? companies have actually learned various lessons in the last few months.
they are finding there are pockets where you can be more productive. you have less commute time. you can speed up decision-making. there are challenges as well. feel they cannot get into the work mindset. is the issue of individual productivity, which can be variable. in the productivity of the team. that companies want to get the benefit. how do we get more agile decision-making and bring it back as we are going back to corporate headquarters? adjustst to fix and what has not been so productive.
to actually work in this more agile way. get smaller groups of people working together. to have the right tools. whether companies have been working remote or coming back. recognizes we have to move faster, make decisions better. we have to adjust to higher-level uncertainty. requires this agile and resistant mindset. many favor remote work. how do companies use the pandemic to better push forward their businesses? clients have said
this is an opportunity. kind ofe been on some digital transformation agenda anyway. to take advantage of all the technology we have. to run businesses more efficiently. this is a time of opportunity. you look at this underlying virtual remote technology. it will be a meaningful part of how work is done. opportunity to potentially move faster. companies are finding they can do this. it has been a source of surprise or many. created, thatget is consistent with all the ways companies have been saying we need to have real investment.
making this aspect of our workforce much more important. years ago companies were creating digital offices. sustainability offices. that is typically a sign of how important it is. we see that happening. yvonne: thank you so much for joining us. tries up next, evergrande to revive confidence over fears of debt. onshore bonds are trading at record lows. but a bounceback here today. this is bloomberg. ♪
system, why is that? policies,at beijing's the three red lines, beijing tracking those three ratios, evergrande is failing on all of them. only about one third of the developers will fail these three red lines. the others are doing fine. they can always sell those projects. after the pandemic, housing demand has shrunk. other ♪ ♪ developers can come in. ♪ ♪ they can distract them. poses athink evergrande systemwide risk. what do we expect out of
the regulators. is the world's most indebted developer out there. do you think regulators will have a tighter risk in deleveraging of developers now? >> they do want to do that. they are trying a deleveraging campaign. now it is coming back to normal. they feel like they need to restart this. developers are leveraging again. there are a few that are
yvonne: a quick check on the latest headlines. they have completed their exit from saudi arabia. end of a decade-long investment in one of the kingdoms biggest banks. been finalized, valued at more than $380 million. the stock closed up slightly in on sunday.iyadh it is postponing plans for an ipo in tokyo. they were to set their final pricing today. a share scale that could have raised almost $3 billion. they lowered expectations because of a trade fallout and u.s. china tensions. as much as 25%. speaking of ipos, big hit
entertainment, the manager of bts, is looking to raise $800 million in korea's largest share cells. s --ales. seoul has been suffering recent listings. it is always about the rise of -pop.up -- k this ipo is quite remarkable. bandmembers are all in their 20's. they could get a share of this. they are certainly thriving on all of this. haslinda: you are right. it is 60,000 shares. million, making them richer
than they already are. the timing is pretty interesting. if you look at the album sales, they have been doing really well. worldwide have been disappointed. that is pretty much paying off. is, we have to bear in mind and overreliance on bts. they have to think about diversification. where is it coming? you have to write on that success of bts. they just released an english song. it is in my head all of the time. it brings back a lot of flashbacks. they were just teenagers back then.
i didn't really know who they were. it brings back a lot of memories. we were just kids back then. haslinda: take some credit for their popularity. minister korean trade says they must be revitalized. they are looking to be the person to do just that. two men running for the role of director general. here is part of our exclusive interview. >> the bilateral agreements have started to fill the gaps in the wto. if i am chosen as the director general, i will want members to
translate these agreements into better trading agreements. and better trading assistance. we could also update the group. we really need to reinvigorate and revitalize the negotiating function. this progress might lead more members to resort to bilateral is him -- bilateralism. huawei ortrictions on other countries have also affected south korean countries. it is only fair to expect south korea and other members to readjust their supply chains away from china? issue is still going on. now, we will have to see how it is actually implemented.
i will say that, in regard to the national security issues, some other international organizations are doing security-related technology controls. this issue needs to be further discussed. there are emerging issues in recent years. you have to find a way forward. >> the wto has never had a female leader in its over two decade existence. how important is female representation in international organizations like the wto? >> in selecting the next
director general, the capabilities of a person, the gender should not be the deciding factor. find a very qualified candidate. it is high time for the wto she fought -- to find a capable woman. it could help foster inclusive, diverse control. this could also help better address and promote emerging trade agreements. including economic empowerment. which could contribute to sustainable exclusivity. the first female trade minister in south korea. tell us about your experiences and challenges rising up the
rank in a very male-dominated side he. -- society. easier say it might be for a woman to prove themselves. it is easy to be recognized by others. i have been judged against harsher criteria. i have worked hard to prove .yself i have always been struggling between my family obligations and work. i wish there was a perfect balance between work and family. situation, i think i can better understand the importance of fostering inclusive and diverse workplace culture. minorities can drive and fulfill
♪ haslinda: it is almost 11:00 a.m. in singapore and hong kong. welcome to "bloomberg markets: asia." rishaad: tiktok winning the first round of its legal battle with the white house, a federal judge blocking the threatened ban. the commerce department says it will comply with the ruling. haslinda: the president also making headlines for his financial affairs. lost report says he
millions and barely paid any taxes in recent years. they seem to show his businesses are struggling. rishaad: protests at a lost ally. india's new farm laws spark anger in parliament and across the country. or than 800 people will be directly affected by the changes. haslinda: a check on the markets, pretty much a modest gains across asia. we are seeing gains in hong kong in particular. incks there seem to be overshot territory. index up by 7/10 of 1%. u.s. futures pointing to a higher opening, the index rose 1.6% at the close on friday. all eyes on the presidential debate on tuesday where joe biden is said to have the upper hand. won ang coalition election over the weekend. gold at 18.63. bullion and focus.
investors are looking to see if gold has found a bottom triggered by the rebound of the dollar. there we go, up the moment by 7/10 of 1%, hot on the heels of what is going on regionally. baht withve the thai a little to the downside. this movement is ahead of the prime minister sharing a covid-19 committee meeting. are considering extending the nationwide state of emergency. looking also at the indian inding day, the nifty singapore, 6/10 of 1% higher. the rupee up. positive data out of china over the weekend. let's look at what it told us. let's get to the first word news with karina mitchell.
china's economic rebound continuing with industrial company profits growing for a fourth straight months. -- rose 19% in august following a similar gain in july, although profits here today are 4% lower than 12 months ago. is dueeau says the rise to the sustained recovery in manufacturing demand as well as lower business costs speared -- costs. china is tightening its grip on a province. partyay the communist policies are correct and must be adhered to in the long-term. the united nations estimates as many as one million ethnic uighurs are being held and reeducation camps and beijing defends them as vocational education centers. australia says a tight travel bubble with new zealand could open by year end as infection rates in both countries remain low. wales reported no new
infections in the last 24 hours. in the u.s., reported infections were in line with seven-day averages. the australian budget deficit set to widen from recent estimates but is being mitigated by the resilient price of iron or. -- ore. thanuld be slightly more what it was seeing in july. the australian economy has been in turmoil amid slowing growth, tensions with china and the coronavirus lockdown. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. trump's banesident on tiktok has been temporarily blocked by a federal judge, dealing a blow to the government and its showdown with the popular chinese app it says threatens national security.
fromk is due to be removed u.s. app stores by midnight eastern. joining us from san francisco's ofnder and portfolio manager a management firm that invested in bytedance. good to have you with us. it is a relief for bytedance at the moment. you dealestor, how do with this messy political gain? >> it is good news. thank you for having me on, it is a pleasure to be on bloomberg. i think of this as a distraction. it was three or four months of wasted effort, very expensive, a lot of speculation. we had the ceo of america's leave. it was a messy situation and i am glad that most of it is behind us and the company can get back to business. haslinda: i guess the biggest uncertainty right now is who
will own the new tiktok. does it make a difference to you who owns it as an investor? ram: not really. it seems like under the current structure, right dance -- bytedance will still have an ownership stake in the tiktok business. ited on news information, looks like oracle and walmart will own a portion as well, and the last of it owned by investors, hopefully across all investors. it doesn't matter who owns it. is howstion in my mind will the product development and growth functionality that this company is renowned for continue happening? obviously with the oracle cloud deal -- i am confident any concerns anybody has with
viciously tiktok sending data back to china should be out of everyone's mind even though i am of the personal opinion the company was never doing anything surreptitious. hitter,is another heavy big political covers kind of company as an investor. hear arembers we correct, a $16 billion valuation for tiktok global, that should please most investors in bytedance, me included. the reason i say that is most of us who have been investing a while knew that tiktok would be a valuable asset but it is nice to see a number placed on it for investors to think about how big the overall business could be. it doesn't matter who controls the asset -- the reality is , most ofward, tiktok
the application development has to likely be done in the united states. you go back six months, 12 months, the historical development process has been in china and then there was a customized application sent to other countries. it is clear that can no longer happen and the hope is that tiktok global will build its own internal team, scale up engineering and products in the u.s. to sell to american customers. rishaad: tell me something, of course this is a temporary reprieve, there will no doubt be more in the saga. with the $30 billion valuation, how does one arrive at that? ram: if you think about the overall tiktok business in america, as for the court proceedings and information in the public domain, close to 400
million americans use the product, monthly active users. that is bigger than snapchat and almost as big as twitter. companies trade between $30 billion and $35 billion. there is a precedent and price available. if we think of tiktok as the equivalent of snapchat or twitter. i think that's why there were large investors willing to back them. , over the next five years, my bet is that this will be very big. in many ways, as an investor coming into the coming, $30 billion seems like a big price today but americans spend 40-50 minutes on tiktok everyday and that is a highly engaged source of customers, especially younger
customers and highly targeted as well. the real prize here is tiktok youtube.uld offset that's what they are going after. this going on,ll has it in any way made you think twice about perhaps investing in future chinese tech companies? not just here, but look at the rest of the noise around wechat and snic. ram: to be clear, we do not invest in china. 30% of ourre than portfolio today is invested in chinese companies. we invest primarily in hong kong. my belief is the highest quality companies will always be listed, either in hong kong or in the u.s. market, so we don't really
care about the rest of the chinese individual companies. am pragmatic. we are looking to find the best entrepreneurs globally, whether that is a china, latin america or america. it doesn't matter to us. ultimately capitalism will find a way. that the you say issues are behind them, but this is a temporary injunction and has yet to play out. plus we have a reaction from the commerce department saying it will defend the order and its implementation vigorously. there are risks. ram: i think that is true. ien i said it is behind us, mean it is behind us for today. haslinda: [laughs] texted a while ago and i
didn't get a response, what like imagine getting [indiscernible] one of the challenges the company is it has not been clear if a chinese company could win? it's. companies have -- could win? it's. companies have tried and failed. -- companies could win western markets. companies have tried and failed. this is not an expansion. aboutaid, the way we talk america and our valuation market is we gave very little value to the america model. it is icing on the cake. if it happens, fantastic and if it doesn't, it doesn't matter. thatook has publicly said retention on the tiktok app was so low it did not matter. that's obviously change over
time. bytedance is an innovative they wered let's say told to shut down, go home, you will never have any sort of access in america, that is still an ok outcome. by my estimates, the company was going -- was spending $1 million $2 billion into the u.s. alone. those $2 billion will be available for china operations. the money is not the problem in this company. the problem or the opportunity is the people in the management. if they close down the u.s., that will just open up an incredible amount of engineering product and management band with to focus on solutions and china, and there's huge amounts of ambition. rishaad: very quickly, last question.
-- whathead scratcher does oracle and more salient ly walmart get out of this? ram: i am surprised about the walmart connection and i have not internalized what that means. for oracle, it is simple. oracle gets a marquee cloud customer after zoom. tiktok can benefit from the oracle ties to d.c. $600 million in cloud spend every year, that is a direct input into oracle's somewhat struggling cloud business. tiktok doesn't care, infrastructure is infrastructure, and for oracle eyeing tiktok global, i think it is a steel. -- steal. rishaad: still ahead scratcher with walmart. thank you very much.
korean entertainment. to agency is a big hit, set been 1017ts ipo has times overbooked by institutional investors. a lot of interest in this ipo. rishaad: let's look at one of the biggest stories at the moment, president trump reportedly paying just $750 in income tax in 2016 and 2017. a new york times investigation has revealed millions of dollars in losses from golf courses and hundreds of millions and debt coming due in the next few years. donald trump is dismissing the report. >> total fake news. actually, i paid tax. you will see that as soon as my tax returns are -- it is under audit, they've been under audit a long time. the irs does not treat me well. rishaad: let's get to our
editor, dodi schneider with the latest. -- jodi schneider with the latest. the new york times is standing by the story, but it goes back years. jodi: many years. the headline we've been seeing is that he paid just $750 in federal income taxes the year he his firstesidency and year in the white house, 2017, the same amount. there's also a lot of other information in this very detailed investigative report by the new york times that a sickly -- that they said he extended , this includess struggling properties he owned, vast write-offs that according to them allowed him to pay lower taxes, a big audit battle and hundreds of millions in debt coming due. this as the president wages his
reelection campaign. there are a lot of questions. he has said since he took over the presidency he would go ahead and release his tax records only when he was able to do so because they were under audit we have not seen his tax information at all. this is a very revelatory look into it by the new york times. haslinda: jodie comer president jodi, president trump's supreme court nominee might not pay the political dividend he thought. jodi: he is obviously nominating her for several reasons. it would give the supreme court the most conservative female justice in history but it would not necessarily accomplish what they were hoping, what the campaign was hoping, that the female nominee could attract new women voters, especially in the
suburbs, with the election a month away. basically, many women, conservative women who oppose abortion rights, were already in president trump's cam, but they are a minority of women voters. women,ng to polls, other particular independent and more moderate women voters who may be did not vote for him last time, although some may have, they apparently will not switch support from joe biden based on this choice of female jurists. this could actually drive democrats to the polls given her conservative stance. haslinda: jodi schneider. plenty more to come on the show. this is bloomberg. ♪
of the latest business flash headlines. -- down in wellington after issuing a revenue warning. the stock fell as much as 50% in intraday trading. the company said sales in new zealand and australia were well below forecast due to the virus affect on surrogate shopping. productionst revenue -- the latest revenue production is lower than expectations. has named a new leader to push through one of the largest construction programs in its history. the current head of german banking at deutsche will take the reins on the first of generate next year. he has a reputation for tough cuts. he will need to oversee a turnaround that could lead to 10,000 job losses. -- an indian bank
shareholders rejected an appointment. directorsof ten were thrown out. they say the banks affairs will be managed in consultation with the board may have adequate liquidity. they are continuing to search for potential new investors. american airlines expect u.s. federal aid for aviation to be extended when the program expires. american will continue urging congress to approve further support as part of the wider stimulus package, saying the deadline calls for action. they say further layoffs what hamstring u.s. airlines and hamper the ability to rebuild after covid-19. received about $2 billion in state aid as the coronavirus cripples global air travel. ofy join a lengthy list
companies forced to save their flagship carriers. there losses topped 50% of capital. they were also hit by liquidation of air italia. rishaad: let's look at markets as we go toward the china lunch break. asian equities on the way up and a strong close in new york on friday. stocks in asia on the up, also u.s. and european equity futures rising. further signs of recovery in china. that perhaps was reinforced by profit numbers that were strong, and perhaps we are getting some positivity with regard to the chinese economy. the hang seng part of why we are seeing good gains, a bit of a mixed bag as far as the indices and china go. currently, we have corporate bonds, something to watch out for.
looking for a resurgence in the final three months of this year. that is one thing people are looking at. we are seeing government bonds, 3.128% on the yield. the fx 300 just marginally to the upside. thereould be aware that are a lot of pressures on investors. we have the tiktok band that has been given a temporary reprieve inthe u.s., and we have snic donald trump's crosshairs as well. hsbc, there we go, moving to the upside, 5.6%. intraday, the most in three years. last week it was the lowest level in a quarter of a century. the biggest shareholder raising its stake. insurance revealing in a filing that last week it bought 10 million shares of hsbc, bringing its share to 8%. your today, 51% lower. hsbc, whichok at
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is almost 11:30 a.m. in the lion city. we are in the middle of the trading day. this is how it is looking for singapore stocks, currently trading up by about 0.5%. tweaking its approach in dealing with covid-19 in dorms. they will quarantine fewer workers should cases be detected. micron workers accounted for almost all of the covid-19 cases since april. they have been confined to the residences with limited expectations for work.
sti up by about 0.5%, contribute into the gains. let's get the first word headlines with karina mitchell in new york. karina: very good morning to you. president trump's threatened ban on tiktok has been blocked by a federal judge. bytedance applied for an injunction, arguing the ban was irrational given that talks are stone the table. the administration has said that tiktok poses an immediate national security threat to the u.s., but the commerce department says it will comply with the court ruling. meanwhile, the u.s. is stepping its fight with china -- stepping up its fight with china. american companies now need a license to provide certain products, with the commerce department saying smic presents an unacceptable risk of use. the company has not been formally added to the administration's so-called entity list, which means the curbs are not as severe as those imposed on huawei. malaysia's ruling coalition has
continued its streak of victories. they won a key opposition held stay in borneo on saturday. the result is crucial as he fends off the opposition leader for the premiership. it could pave the way to a nationwide snap election. in the u.s., house speaker nancy pelosi says there is still a chance she and steven mnuchin can agree on a new stimulus package, and that the democrats will unveil a proposal shortly. she says if a deal is not eminent, democrats may vote on a house only version. pelosi is pushing a potential $2.4 trillion fund. president trump does not want to go higher than $1.5 trillion. the upcoming g20 leaders summit to be hosted by saudi arabia will now be virtual. this year's agenda concentrates on the fallout from the coronavirus pandemic, focusing on protecting lives and restoring growth. the kingdom had wanted a traditional face-to-face summit as it seeks to revive its image
following the killing of critic jamal khashoggi in istanbul. 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 karina mitchell. this is bloomberg. haslinda? we are seeingna, some relief in the markets. a lot of gains for asia across the board. we have investors mulling over signs of recovery in china amid rising virus cases in some parts of the world. the presidential debate also in focus. the msci index up by 0.7%. u.s. futures pointing to a higher open, all eyes on the debate on tuesday. the nikkei back from lunch, currently higher by zer 0.7%. jump is -- the hsbc is adding to its stake, taking its total sedate to 8% -- its total
stake to a percent. let's look at where we are in terms of gold. gold investors on alert to see where the havens go after the rebound in the dollar. futures currently lower by 0.1%. 18.63. 7 amid signs restrictions will slow the economic recovery. also signs of increased supply with alexander novak saying the recovery is expected to be long and gradual. we areocks tracking, of a grant is seeking a proposal to secure the avert of a cash crunch. they have given assurance that everything is ok. evergrande is currently surging by 9.7%. s mnc down. restrictions have been imposed on the country, taking aim at another prominent chinese
company. alibaba up by about onepercent, tencent higher by 0.5%. we are also tracking trading in japan. it is tanking, falling the most since april after reports billion shares sale. the report is suggested by nikkei. the company does not see a rebound in demand amid the pandemic, planning to cut costs by selling its aircraft. japan airlines also lower on the back of that. let's get a look at what is going on with the trading environment in general. our guest is with us. thank you for joining us. e.m., china look at and global high yield and the risk. you can't really divorce that from what is going on in the
u.s. and perhaps europe, where we have central banks reaching their effective lower bounds or tionary lower bounds. site, there is not much fiscal wiggle room, unlike the fed or the ecb. what are your thoughts on that, and what is the likely outcome? guest: it seems to be the case. the way i look at it is when you look at the driving points behind the rates, it typically is by the diverse central banks. mentioned, a lot of central banks have reached their effective lower bounds and are relying on the ability of fiscal measures to take this recovery through. -- a lot of the a.m. region for a lot of the e.m. region, some have more monetary space or
are allowed to use it. they want to preserve as much flexibility as possible. at the same time, a loss of emerging-market companies pushing against the ability to deliver more fiscal stimulus into those economies. that means we have got betweeng spreads emerging markets and developed ones. how about for the dollar longer-term? guest: that is a really great question. typically in the past, emerging markets fx are somewhat beholden to the actions of the u.s. dollar. when you are in a weak dollar environment, that global growth is going really well, and it is usually in un uptrend and emerging markets are benefiting from inflows of money from offshore's, seeking better that theom the growth economies benefit from.
i think what is different this time around is because with this ,attle between monetary policy playis not just a beat to against the dollar. i think you do have to look at the individual economies to determine how much monetary space they have and are willing to use, and how much fiscal levers they hold. if you wantuntries, risk, you would go for the high-yield. they are likely to have the same kind of returns that you have had in the past because a lot of these countries are also coming up against years if not decades of underinvestment in infrastructure. when you are getting that lift off, they will be suffering from coming up against the age-old inflation problems as well as potentially the limiting supply
being able to expand in those economies. justad: what you have said, does that really mean we will see more corporate issuance in dollar terms rather than indigenous currency terms? guest: that is a really good question. i think it varies for individual countries, and i think when you look at the dollar issue, obviously the corporate e.m. dollar issue is growing by leaps and bounds over the past decade. think as we continue to see countries come closer to the fiscal bounds, they are more likely to be punished by these special communities when they issue dollar bonds, and wherever possible they will be encouraging the development of their local bond markets, as we have been seeing with the
chinese example and last week's announcement of chinese inclusion is one good example of that. for the boost for chinese bonds going forward, the bonds for you has made very attractive. guest: absolutely. i think i have, mentioned in the past on this show as well. a very simple reason being that in this world where high-quality government issuance, government bond yields are disappearing to almost nothing, china is one of the few countries globally that still has very an solid investment grade ratings. you know the government stands behind this market as well, and they are offering real yields that are unparalleled anywhere else in the world.
emerging-market currencies -- among emerging-market currencies, the you want is going strong goal -- the yuan is going stronger. at what stage do you see the pboc getting worried? guest: arguably, you have already seen a couple signs of that in the last quarter. countercyclical factor when they announce. it is a pseudo-managed currency at the end of the day. is it hasave seen allowed us more flexibility to come into play. using that countercyclical backdrop, especially in periods of weakness, china has strengthened the yuan slightly against the dollar. now you see them leaning in favor of the market remote
momentum. pboc stigma what that is it will always be a one-way ride. don't think we will always have your back. but in the grand scheme of things, to allow for more index inclusion of chinese assets in these big global indices, the pboc needs to demonstrate more flexibility to come into all of its markets, currency included. xie patrick, thank you for your insight. recapping the headlines from hsbc, it is seeing its biggest jump on the back of boosting at stake in the bank, taking it to about 8%, which makes it the biggest shareholder in hsbc. still to come, it has been touted as one of the biggest reforms undertaken in india.
the legislation is expected to change how farm producers cultivate and sell. millions of people who depend on agriculture directly or indirectly. let's get to our south asian government editor. the film -- the farm bill is now law. reporter: the execution of the farm bill is largely procedure once both houses sign it. the president usually signs it. now that this part of the process is complete, the bill is now the law, how the massive farm sector sells its product will be determined by the lords. this is something the prime minister has described as a watershed moment for indian agriculture. he has said this would lead to more independence for farmers and other prices. the lot removes several barriers former have to face right now and they can trade -- the law removes several bear
yours farmers have to face right now. it has led to an incredible angle by the farmer who feels that what will happen is the safety net india's farmers operated with will be yanked away. haslinda: what are the implications of modi's government losing an old ally? both the protest from the farmers as well as the exit of the chairman, a loyal ally of the party and a member of the ruling alliance, it certainly is inconvenient. it comes at a time when the government is fighting many fires, the pandemic is surging, and the country will likely hit the 6 million infection mark. the economy is in shambles. he has a very comfortable majority. losing an ally is inconvenient.
it is not something that looks good. we have ramifications in the future. but for now, the government has the numbers of the law house and it is completely safe. it does not have any immediate ramifications for the prime minister and his ruling party. rishaad: thank you. india just came onstream about a minute ago. we were expecting a story with the rest of the region. percent across a the board. backdrop oft this more cases of the coronavirus, aiding 82,000 cases in a single day, and related deaths up to about 95,000 people who have lost their lives to the virus. a lot more coming up. this is bloomberg. ♪
q2. q3, wethe last days of are very happy with q3. we are confident that if we are lucky enough and we can make up the loss, the sales that we lost in q1, we can generate revenue into march. reporter: so you think you can dance back to pre-pandemic level of sales by the end of this year? >> yeah. and you look at the monthly most the last few months has been more in the previous years. it has something to do with the consumption. q1, they used it. that maybe the reason. we are still very optimistic with the.
mindfully optimistic. reporter: is there any sense that your high net worth clients are feeling the squeeze now from a slowing economy? >> it is difficult to say. even in bad economies, you always have the people who make good money. that.w exports, for example, it is still increasing. customer, they will not necessarily say i want to buy a brand-new car. they may have different issues with themselves. but we need to look into the issue, and one issue is that we see the customers are getting younger and younger. customers below 25. this is a fact that is very
special in china. the average age of chinese customers and european and american customers. reporter: aston martin has been underperforming other super luxury brands. where should the shift be? what needs to change in the business' overall strategy? agree with that, underperforming. -- our industry is very tight. we have a lifecycle. time, we did not have a new product. db-11, with the db-s coming to china, and the db-x, we are one of the successful brands in china. reporter: there were rumors here
in china that one of the leading automakers, private automakers, is looking to partner with aston martin, invest in aston martin, do some sort of deal with aston. can you confirm those rumors? are you discussing with them on any level? >> we focus on our business. is a very normal industry. everybody is talking with each other. there is nothing new. i cannot confirm this. peng speakingel with tom mackenzie. has been having a good time of it in the third 300 $90 seeing a record billion in transactions involving asian firms, while those in europe in the americas
plunged. let's get details from our deals reporter. why is asia doing so well? why is it an outlier? reporter: good morning. asia indeed is doing really well. the third quarter has outperformed big time. is surprising in the way that the u.s. and are up -- and europe have always been much stronger compared to asia. i think the fact that the china,c has stabilized korea, japan, it has helped a long way. technologyn a lot in that has helped drive the m&a sector. we have record volume. could this loss?
guest: it remains to be seen. it will be a big question mark as we get into the fourth quarter. let's say all it takes is a asia. deals to overtake it is likely it will be the case as we get closer to the year end if things stabilize a little bit more in the u.s. ready to are getting use the m&a toolkit as the star, looking for growth. it has been a tough year for everybody and companies after that they are getting back to the drawing
board to reassess what they can do to keep rolling. overall very quickly, you mentioned m&a. what sort of year has it been? how does it compare to others? reporter: the year has been really tough. worst been one of the first halves in memory. deals.ve seen very few the beginning of the year was fine until covid-19 head and basically put everything on hold. so it has been a really tough year for every investment bank. it has been really challenging to get deals across the line. but things are starting to look a bit brighter. hopefully the worst is over and we will see more activity into the fourth quarter. the third quarter was much better, and hopefully the
quarters to come are much stronger, certainly banks and dealmakers building the pipeline for next year. haslinda: let's do a check on the markets. asia in the money this monday on optimism that there are further signs of economic recovery. is hsbc,ets recovering surging almost 8%, the most since april 2009. it comes after it hit its lowest in a quarter of a century. ing is boosting its stake hsbc, making it the biggest shareholder. evergrande surging by 12%. we have evergrande saying it is sound in terms of operations and financial conditions, and seeking the listing to revert a cash crunch. smic down 5.8%.
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