Biden Set to Sign TikTok Ban-or-Divest Bill Into Law | Bloomberg: The China Show 4/24/2024
We are half an hour away from the
opening bell.
Hong Kong, Shanghai and Shenzhen.
You’re watching the China show.
I’m David Inglés with Yvonne Man.
Our top stories this morning.
Asian stocks rise after a rally.
U.S.
tech heavyweights with investors focus
on earnings and a major test of
sentiment on equities.
Tesla jumping in late trade with the
promise to fast track cheaper models,
taking the spotlight from the ugly sales
and also the profit numbers.
And China steps up the rhetoric ahead of
Anthony Blinken’s visit, blasting U.S.
claims of overcapacity and accusing it
of curbing China’s development.
All right.
A quick look at the market action here.
That’s what you’re seeing, a pretty good
risk rally across the board here in
Asia.
I’m really going to thank Tesla for
that, that after hours trade, the pop in
those shares really lifting U.S.
futures higher as it’s really helping
Asia here, up some 1%.
And we’re seeing some of these tech
heavy gauges really catch a beat here
this morning.
Taiwan just coming online here.
We’re up more than one and a half
percent in the taiex.
The cost be also up and as well, the
Nikkei close to 2% gains here as well.
You also saw when it comes to the S&P,
the best back to back rally we’ve seen
in about two months or so.
So, you know, obviously the US tech
earnings are in the spotlight here this
morning despite those Tesla numbers.
We’ll get to that in a little bit
though.
They missed on basically all fronts, but
the announcement of cheaper models, the
talk of this robotaxi certainly did help
lift the optimism there.
But the miss on the US PMI numbers was
also quite telling as well.
That took some steam out.
The dollar also took some steam on that
sell off when it comes to bonds as well.
So you do see yields dropping but
actually stabilizing a bit here in the
Asia session.
But yes, it was a pretty solid bond
auction for the two here yesterday as
well.
So that’s what we’re about for 94.
US two year yield gold is also down for
a second straight day as well.
Was also keep in mind a bank Indonesia
decision global later on here today it’s
pretty much leaning towards a hold but
there’s a fraction of economists out
there that still think that they could
hike does given the slump that we’ve
seen the rupiah.
So something to watch out for, not as a
goal and drags are pop, especially when
it comes these 80 hours in the tech
space here yesterday.
So that certainly is going to help how
things go in Hong Kong, which Dave has
talked about.
Right.
The Hong Kong market has basically been
the best in the world in terms of
equities this week.
So it’s only Wednesday, but still it’s
been an outperformance.
That is worth noting.
We talk about those southbound flows
basically 17 straight days where mainly
investors have been net buyers of Hong
Kong stocks.
Here’s that certainly helps to set up
here for today.
You took a lot of futures are set up
here this morning.
There were some lines from some of the
aspects.
Regulators talking about the exchange
rate a little bit as well.
Futures are pointing higher here.
We talked about the red that just
crossed about bond yields hitting a
record lows in the credit markets, I
believe, in China.
But we’re watching ever so closely that
China ten year yield to 23 and seven,
2526.
There you go on dollar China do yet to
be more specific, Yvonne, on the
breaking news that you just mentioned,
there’s a 2.25%.
That’s the record low.
That’s the yield that’s a yield
effectively that you get here on triple
A rated three year corporate notes in
China.
So that’s a local currency bond yield,
2.25.
You look longer at longer term tenors,
210 go all the way to the 20 year
similar trend.
We talked about something similar
yesterday with LG of these and borrowing
costs are also falling as well.
So keep that in mind.
We’ll watch that very, very closely as
IGB yields.
Of course, we’ve been tracking the rally
there and the one year has effectively
nearly almost taken out the the 2023
low.
That all that being said, a couple of
things to tell you about today.
Eve makers obviously on the back of
Tesla earnings and Tesla guidance as it
pertains to that specific price point of
the market.
This news just dropping about 5 minutes
back on the EU And you know we did get a
sniff of this I would say about a week
back opening this investigation into
medical device procurement.
So that group of stocks will be in focus
today amidst really what’s taking place,
this world beating rally in Hong Kong so
far.
So the first two days of the week, a lot
of the benchmarks in Hong Kong are talk
of the league, top of league table so
far, earnings out of Hkex.
You have a trading debut here today.
Yesterday’s debut was any guide I guess
close your eyes if you along this one.
All that being said could be completely
different, of course.
Anthony Blinken is in China.
More on that and the geopolitical
conversations a little bit later in the
show.
Yeah, so it’s extremely busy as we head
into the Wednesday session and we
haven’t even talked about Tesla.
We haven’t.
And let’s talk about it now because you
talk about the after hours, hours trade
and certainly despite, you know, how bad
those earnings were in the first
quarter, there was quite a bit of
optimism.
Right.
So basically the promises to ramp up the
launch of more affordable models and
following a decline of first quarter
profit margins and sales.
Let’s bring in our Asia transit
reporter, Danny Lee.
He joins us from Beijing here this
morning.
Danny, there’s a lot of questions about
the robotaxi, a little bit about what
the strategy is going to be around these
cheaper, affordable models.
What was your take from this earnings
call?
Yeah, I think it was important that, you
know, Musk gave some clarity on how
Tesla will grow in the next several
quarters, specifically around lower
cost, affordable models.
It’s not just one, but those are the
many of them coming forward down the
line, but specifically the fact that in
the last earnings call in the previous
quarter, we heard that Elon Musk and
Tesla would go for a more affordable
model that will come.
Now towards the back end of 2025.
Now, that is bringing that forward to
around early 2025.
So that brings forward potential growth,
potential growth by around three
quarters.
And that’s important because as Tessa
signaled previously and also overnight,
that it’s going to suffer and face
notably lower growth into the rest of
this year.
And that’s a challenge for them because
as they face huge and more even
competition, they’re cutting prices to
to kind of spur more demand is not
necessarily working as we have seen.
Therefore, earnings has taken a bit of a
hit, particularly in the first quarter
apart from the affordable models and I
guess the conversations around whether
or not that could also lead to future
margin compression.
What else would apply to any mixed bag,
of course, when you look at other
metrics?
Yeah, I mean, for the earnings front,
you know, clearly
margins still down, but better than it
had been expected.
And when you see revenue and the
operating result that was lower than
what the market in the street was
looking for,
Tesla has been on this cost cutting
drive.
We saw them last week, cut 10% of the
workforce and cut it in some divisions
closer to 20%.
So this, you know, Musk said they’re
going to keep on cost cutting in order
to get into shape.
And and so as I have lost a number of
key executives, as well as I push
forward with this lower affordable
model, it’s going to be very important
to see just what they deliver on this,
because even Musk, as he’s made some big
pronouncements in the past, he has not
been able to deliver exactly on the
time.
And when you see something like the
Cybertruck, the Cybertruck, which has
just emerged, that took four years from
when it was originally announced.
And so therefore, can Elon Musk deliver
on something like a robotaxi or even an
affordable EV model, whichever comes
first, and in which form, in order to
help kind of revive this earnings
momentum, which has kind of declined on
the back of a lot of negative news flow
of late.
There we go.
Danny Lee for us unpacking the Tesla
story in Beijing for us, where really,
if you think about it, you know, the
competition coming from Chinese is part
and parcel to this Tesla story.
Let’s stick with big tech.
Let’s stick with China.
Let’s talk about Apple.
This time, though, independent research
firm Counterpoint Research reports that
Apple’s iPhone sales in China fell 19%
during the March quarter as another drop
marks the Gadget’s worst performance in
the country since 2020.
For more, let’s bring in our executive
editor for Asia Tech, Peter Electrum.
He’s joining us on the line out of
Tokyo.
19%.
Peter, I guess it shouldn’t come as a
surprise given the I guess, the initial
prints that we’ve seen for January and
and Fab.
I guess the question is, is there an end
in sight to the weakness coming through
for this specific product in this
specific market?
Yeah, you make it.
You make a good point.
We have gotten bits of data ahead of
this, including some shipments, figures
for Apple and the other smartphone
makers in China.
But make no make no mistake, this is a
bad set of figures for Apple watching
their their sales fall by 19% in China.
That’s significant for them because this
is their biggest market outside of the
U.S..
We know that they face some headwinds
there for a number of different reasons.
Probably the key in the first quarter
was the rising competition from Weiwei,
the company that’s been blacklisted by
the US.
They weren’t supposed to be able to get
some of these semiconductors to power
their smartphones, but in fact, they’ve
been able to make them domestically.
That’s created a ton of demand.
There’s been some nationalism behind
that.
It’s driven support for sales of the
wall of these devices.
On top of that, as Bloomberg has
reported, they’re government agencies
that are banning the use of iPhones in
certain contexts are within the country.
So that’s created a ton of challenges.
Tim.
Tim Cook, the CEO, of course, went to
China.
He’s been trying to make sure that he
can do whatever he can to salvage that
market and make sure that they help
sales as much as they can to open a new
store in Shanghai to be able to drive
sales.
But it’s becoming increasingly
challenging for Apple to make progress
in China, which is such a critical
market to its future.
Yeah, amazing how this Huawei comeback
has played out.
Peter, you know, it doesn’t look like
Apple’s going to be coming out with any,
you know, upgraded handsets or anything
until the fall.
So what can they do to really prevent
more market losses now in the near term?
Well, there have been they have been
taking a number of steps.
You’re exactly right.
Apple has a very
fixed rhythm of introducing new handsets
in the fall.
They try to come up with something
that’s going to tempt buyers.
That’s been a struggle for them, not
just in China, but more broadly.
They’ve been struggling to show enough
improvement with each year’s new device
to be able to spark demand as they did
for so long.
In the past, of course, in China in
particular, we’ve seen them cut some
prices.
They’re trimming a few different models
within the country to try to drive
prices and also opening up some retail
stores.
Again, Tim Cook is taking it very
personally.
Tim Cook built the supply chain that
Apple uses through China.
He’s been visiting the country
very vocally, supporting their
operations there.
They feel like it’s a very critical part
of their operations.
So they’re they’re doing what they can.
But Apple is struggling at this moment
in China may be a bit of a reflection of
broader challenges globally where
they’re trying to move into some of
these emerging markets and also boost
sales there.
But to be clear, their prices are very
high, so they’re at the premium end of
the market and they need to be able to
stoke some demand at that end of the
market.
Peter Ellis Jim, thank you, our
executive editor for Asia Technology,
joining us out of Tokyo this morning.
Still ahead, we’ve got iPhone telling us
how Wall Street is underestimating
really the impact of BYD and other
Chinese makers snatching away market
share from Tazo, the lead tech analyst,
and joins us in the next hour.
Right.
And we’ll take you straight live now to
the US Senate where they are set to vote
on this bill, of course, and almost this
everything in the basket sort of bill
here, Ukraine, aid, tech talk,
divestment or ban.
So we’ll bring you the latest out of the
floor in D.C.
Plus, of course, the open coming up 18
minutes away.
You’re watching the China show.
Happy Wednesday.
All right.
If we cut the week short here, we could
do a victory lap and open that bottle of
Bollinger right now.
So Monday, Tuesday, Hong Kong markets,
Hong Kong equity markets have are really
top of the global table this week.
So I think three out of the top six
benchmarks are all in Hong Kong.
Each stock is up 5.2%.
HCI, HCI, we’re also looking at and
we’ll talk more about this in a moment,
18 straight days or 17 straight days of
net flows into Hong Kong to the stock.
So it’s it’s been a good period of time
here for Hong Kong equity markets
reference rate of the day.
Bottom of your screen.
Let’s talk equities now.
John Lin, China equity CIO
AllianceBernstein is here with us and
said it’s nice to see you.
Good seeing you.
It’s sentiment has really picked up
question mark a little bit.
A little bit.
I mean, over the last year, right, since
the COVID zero policy, the economy has
been is stuck in this sort of weak
pattern of recovery.
But every three or four month or so, so
sort of say, well, there’s going to be
more stimulus, don’t worry is going to
come in, the market runs up and a
similar doesn’t come if people get
disappointed or the Shorten data gets a
little bit better and people get
excited.
And then the next set of data is not
Oscar and then the market comes down.
So it looks like we’re still in this
pattern.
But the the most recent data does look
like a little bit more promising than
before.
So let’s see what the next set of data
brings.
But what it does, the larger pattern
does point to this sort of growing up,
right.
Things are getting a little bit better.
Not in a hurry, but they’re not worse
than before.
So, I mean, are we seeing that reflected
in an earnings growth, for example, the
fundamentals changing a little bit,
macro picture looking a little bit.
I mean, what did you make of this
earnings season so far?
I think we’re about 90% into it now.
So the picture is mixed.
And I think if you look at some of these
very domestic oriented companies, the
numbers are still not great.
And so really it’s about the second
quarter and four, but that sort of first
quarter or fiscal 23 and backward
looking because those set of numbers are
not particularly impressive.
Yeah.
So so I think we have to wait and see
what are the what are the bright spots,
the standouts?
Yeah.
Yeah.
If I look more narrowly at our own
holdings or our portfolios, the set of
companies that have both a dominance in
domestic market with their products or
in machinery companies or bus makers,
etc., but very crucially, a very large
export business, particularly to what we
call the Global South today.
But basically all the emerging markets,
Middle East, Southeast Asia, those
companies are doing particularly well
because of this booming demand from
places like Saudi Arabia when they are
building, you know, 50 resorts all in
one go at the bank of the rest, these
swing states,
obviously, we’ve been talking about this
nine point plan that came out once in a
decade.
How important is it as a value investor
yourself to be seeing this sort of
change?
Do you think?
It’s important to note that, you know,
policymakers are putting capital reforms
as sort of a priority now that we think
it’s a huge deal?
It’s probably something that’s being
underappreciated by the market,
certainly by folks who aren’t really
looking at China day to day.
And these sort of capital market
guidelines comes out once a decade.
And the last couple of ones in 2004 and
2014 kind of set up the Asia market as
we know it today.
And we think the new US set of the nine
point guidelines are really a reflection
of the maturity of the market.
So it’s no longer about, oh, that’s get
older IPOs or small companies as much as
possible into the market, but it’s now
emphasizing protecting shareholder
rights, enhancing shareholder returns.
And as a fiduciary to shareholders, we
love that.
And how is it actionable now?
Do I have to wait a few months, years,
and how do I act on it now if it is no,
I think is still is already taking place
mean if you look at things like dividend
payouts or even the expenses of
announcements of stock buybacks, those
are definitely picking up.
So the regulators or the exchanges are,
I think, nudging companies, especially
Saudi’s, to start action on some of
these items to return.
And if I take a step back and sort of
maybe compare more broadly across, of
course, a lot of attention is being on
Japan, How well they’ve done in terms of
their own wasn’t called out back then,
but similar set of programs on
governance reform and what Korea has
begun to do,
I think there’s a little bit of one
upsmanship sort of between the
regulators and between the companies,
which is they’ve done it.
We got to be able to do it, too.
We can maybe do it better.
Again if the result is better returned
to shareholders.
Bring out
is one thing that what regulators are
doing.
I’m just wondering, is it also just a
symptom of these dividend payouts is
because domestic demand is so weak and
CapEx plans have been pulled back that
we were seeing so much of this kind of
return to shareholder growth.
Right now, there’s no other better use
of them.
And if things get better, does that
trend sort of change?
So on what you said before about maybe a
lower set of demand, so the CapEx plans
have come down, etc.
and therefore making more cash, more
available for the dividend is absolutely
true.
And in fact, dividends, it’s a fairly
recent phenomenon.
And so the way we run our fund is is
quite fundamental.
So we have our own quote motto.
But interestingly, when we first started
15 years ago, dividend yield wasn’t in
our model because there was just not
even a year.
Now, if you remember 15 years ago,
Chinese companies, the mantra is if you
build it, they will come right in.
So if you make money, you want to build
another factory line, you will get
filled.
Don’t worry.
It’s really until 2014, 15 for us that
we found dividend yield as a factor to
start becoming effective because they
finally arrived.
And I think now we are reaching a stage
where the dividend paying behavior has
really become more common because that’s
a way viewed as a good way to compensate
or reward your shareholders.
So absolutely not something that’s going
to affect the market, do you think?
How does this affect
growth strategies where you typically
don’t really get, you know, you know,
dividends aren’t usually part of what
people consider to be one of the top,
you know, top factors why I’m picking
China, for example.
Because if you look at Hong Kong, you
know, the benchmarks here are very
heavily weighted towards these growth
stocks, for example.
Yeah.
So so a couple of things.
One is that the definition of growth in
value sometimes gets blurry because, as
you pointed out, some of these Hong Kong
stocks are heavily tech stocks, heavily
in the in the benchmark.
They’ve come down in valuation, first of
all.
And second of all, some of them actually
started paying quite healthy dividends.
So they’re trading like value.
Stocks are behaving like that, value
stocks, if you will.
So I don’t know if if you wait long
enough, everything becomes a value
stock.
Eventually we wait long enough.
We’re all dead.
That’s the economist’s joke over the
long term.
Indeed.
So we’re going to leave it there.
But thank you so much.
Great to see you in town.
John Lin there, chief investment officer
of China Equities at AllianceBernstein.
All right.
This is not good news.
Once I get asked her, I didn’t want to
do this, but now we’re talking about
this other trading debut in Hong Kong
here today.
So yesterday it was more about bubble
tea.
Today we’re talking about Mobvoi.
This is the Google.
I start up.
There you go.
We’re seeing another slump, really In
the first day of school, they were down
21%.
We’ll see how this all plays out.
But yeah, the IPO market this week just
really hasn’t got going.
Well, no.
And despite being the busiest,
ironically enough, Hkex is coming out
with earnings today.
Yes.
So you got to wonder what the pipeline
looks like.
We’ll take you straight back to D.C.
where we understand the US Senate now
has enough votes to pass the Ukraine
Israel aid package.
There we go.
Believe it to speak there.
More details coming up, plus a preview
of the Wednesday session ahead.
You’re watching the China show.
All right.
17,000.
Here we go again.
Any time.
Lucky.
We’re looking at just tech.
And there we go.
We’re back above 6000 on the Hang Seng
China index.
So at these levels, we should be at the
very top end of the recent range, should
be the top
of highest level of the year so far.
So we’ll see how we end the day.
Bullish break has lumber closed above it
yesterday and we’ll see if we remain
above it by the end of the session.
Yeah, take a look at some of the stocks
to watch here.
We talked about, you know, whether it’s
the Tesla supply chain, whether it’s
these new
trading debuts that we’ve been talking
about this week as well.
Take your pick, Mobvoi.
There you go.
We continue to see those declines of 21%
or more.
Certainly that this is was supposed to
be a pretty interesting week for IPO’s
and whether this is going to really
revive the market here.
But the last three have not been pretty.
We are the open coming up next.
This is bloomberg.
Welcome back.
You’re watching the China Show, a kind
of the open the markets and will
continue to watch this rally take a more
of of momentum.
If you take a look at whether the Tesla
effect really that’s lifting the markets
here this morning, you got to also talk
about the data that we got.
The U.S.
was really kind of helped fade that sort
of higher for a longer narrative as
well.
So that’s how we’re seeing tech deliver
here today.
And we’re certainly watching very
closely those levels on the Hang Seng
day.
Yeah, 17,000 or just a little bit below
that right now in your premarket.
So we’ll see if we cross above that 6000
and the Hang Seng China index Asia stock
has been has done exceptionally well
this week so far, up 5.2% Monday and
Tuesday.
And in a couple of seconds, you’ll see
what it opens up into as well.
In a couple of seconds, you also see
some of the moving averages to focus on.
We’re starting to see is our 300, which
just about is sitting close right below
a key level.
Yesterday were a little bit above that
as we speak, Hang Seng index, not 9/10
of 1%.
As we pointed out, 17,000 MSCI China is
almost reversing all of the losses so
far this year.
But as you can see, a rally out of the
gates.
We do have a bond auction today, I
should tell you about, I think is 2025
bonds, 125 billion, if I’m not mistaken
here.
Speaking of local currency bonds, triple
A rated local currency bonds, the yield
there has hit a record low as of
yesterday, 2.25%.
Just to mention that as well.
Small caps also doing well in the in the
opening minutes.
Flip the boards, please.
So we talked about Tesla.
US futures are pointing higher on the
back of those earnings that 13% move in
the after hours trade.
You are getting a follow through across
some of these EV plays as well.
Sean me and you are getting also some
guidance coming through.
The CEO talking about speaking up
margins and Tesla margins guidance auto
show me there.
There we go.
Bottom of your screens earnings is also
a big theme still paying on was out
yesterday AT&T Lithium was also out big
drop in the shares in Hong Kong.
Big drop in Asia, I should imagine.
There we go, 16%.
These are as you’re looking at here,
cash is coming in with earnings all day.
Two of the bubble t maker were down
5.8%, 28% drop yesterday.
And there’s also trading debut today in
your pre markets.
We were down 20% on my boy and your
initial pricing in the opening minutes.
The boards please if we can should be
showing you ice 16% but although silver
lining Yvonne we’re coming on the lows
of the day
delivered the digits though we’ll
continue to watch this one as well.
And yeah given the fact that tech is
doing so well here today, this is a
Chinese air firm to not really playing
ball this morning.
We’re taking all these Aussie CPI
numbers that just cross your Bloomberg
here.
So 3.5% is what we saw for the year on
year numbers slightly higher than
expected, although it is still seeing a
bit of a kind of slowing of price
pressures in Australia, keep in mind was
4.1% in the fourth quarter.
So we’re getting ever so closer back
into the RBA’s 2 to 3% target band.
And this really bodes well potentially
for what’s going to go on with that RBA
meeting that set for May six and seven.
Maybe that’s going to feed into what
this means for projections on growth and
inflation as well, though, you know, RBC
economics economist there, James
McIntyre, saying that disinflation that
you’re seeing, though, has been uneven.
If you take a look how, you know, price
pressures in housing, rents, for
example, insurance costs, for example as
well.
There you go.
You’re still seeing a bit of a lift
there when it comes to the Aussie
dollar, given that these were stronger
than expected.
All right.
Meanwhile, we’re talking a little more
about these Chinese markets and what’s
really driving all this.
And, you know, there’s momentum in these
markets.
Now, take a look at Bloomberg analysis.
They’ve been looking at China’s
sovereign wealth fund has likely bought
at least $43 billion of onshore ETFs in
the first quarter.
Let’s get to our Judy, you or Asia
stocks reporter joining us now.
So we’re still seeing quite a bit of
state, I guess, support in this market.
Yes, exactly.
More than six times then the amount that
the central regime bought in in the six
months through December last year.
So it sounds like to me it’s a big
amount.
And when we talk to investors there were
saying like that, that is just like, you
know, maybe just like small part of what
we can verify because all the inflows
we’ve checked are only for the ETFs that
are the biggest in China, but for the
smaller ones, when they are not the top
holders, those numbers are not in a
filing.
So the actual number can be much bigger
than we’ve seen.
I guess the question is does it
continue?
And if it doesn’t, is that good news as
well?
Because there’s less need, I guess, to
support this market?
Yeah, I feel like it is, Ali, is you
know, you saw that UBS upgraded
yesterday upgrading in China, obviously
the national team as one of the key
reason why they’re turning to be even
more bullish because it is really
putting a floor.
I’m not like they’re are going to boost
US stocks but at least make people feel
like there could be some support when.
Those stocks are down to a certain
point.
We’ve seen some support whenever, you
know, the Shanghai Composite Board to
like around 3000 level and we could see
some afternoon rally for the onshore
stocks.
We were just talking to John Lin from
AllianceBernstein about the sort of nine
point, you know, these guidelines and
how he really hasn’t seen this scrutiny
when it comes to, you know, how
companies reward shareholders.
I mean, in a decade or so, certainly
something that he didn’t see 15 years
ago.
How important is that and how big of a
trend is this?
Yeah, I think that’s a very, very
interesting topic.
People have been watching for a long
time because in Japan and Korea, you
know, Korea has the value add program
and Japan has all the corporate
governance is I think China is just
trying to do the same.
But it’s just like how fast they can do
it.
I think the nine point guideline
announced two weeks ago is really, you
know, kind of like an inflation
inflection point.
Like we’ve seen some companies in Asia,
they have switched their plan to
announce more dividends in the past two
weeks.
And also we’ve seen some CEOs say
they’re doing a more faster approach to
rectify some illegal tradings by some
like a key a-share companies, which are
all good signs.
So, yeah, I think I think in general
it’s it’s it’s a very welcome move by
team by the investors at this moment.
Gina, you thank you so much.
Asian stocks.
Reporter there, there’s a story, full
story, by the way, on this nine point
theme and the scrutiny sparking these
holdouts to pivot to giving up more
money to shareholders.
Right.
Just ahead, sir, someone in china.
Secretary of state antony blinken.
He’s on the ground.
He’s set for some difficult
conversations there as he visits the
country with Beijing, accusing the U.S.
of economic coercion and bullying.
We’ll have the details next.
This is Bloomberg.
We can say that the relationship is
getting worse.
It’s true.
But it’s getting worse quite slowly.
And there’s more stability to the
relationship.
But that when there is conflict, the
conflict does not escalate out of
control.
Rather, the escalations are targeted and
calibrated.
Ian Bremmer, founder and president of
Eurasia Group, speaking with us earlier
on shows here.
Now, of course, the backdrop here is
this relationship.
And China’s launching its harshest
attack yet today, at least on us
complaints about industrial overcapacity
and really just comes as Anthony
Blinken, US secretary of state, is due
to arrive.
Jenni Marsh is with us here on set here
in China, Ed, to talk us through this.
And yeah, we know the positions are
quite clear as it pertains to this
specific issue here of overcapacity.
Exactly.
So it’s quite unusual for China to hold
one of these briefings before the
arrival of a dignitary as it really
signals how seriously they’re taking
this in the sort of message they want to
send to the US before Blinken does
arrive in China.
But overcapacity among the Europeans and
the Americans now is like really
emerging as one of the big sort of
sticking points in the relationship.
As you know, these leaders are accusing
China of sort of exporting manufacturing
overcapacity to the rest of the world.
And we saw, you know, Shultz talking
about this earlier this month as well.
So it’s really going to be one of the
big sticking points along, of course,
with, you know, China’s continued
support for Putin as the one Ukraine
goes into the third year.
And Blinken decided to carry a very
strong message about China’s support for
Russia’s war machine.
We’re just talking about this, the tick
tock bill, that could get enough votes
to really pass in the Senate here right
now.
I’m just wondering, it seems like
China’s been quite muted in terms of the
response of overcapacity of late.
It’s been mostly just kind of these
statements.
But, you know, if there is actually some
sort of law to ban or divest tick tock,
how likely is Beijing going to respond?
Is going to be it is a direct attack on
China.
If they do go ahead with this and put it
into law as it looks like.
So, you know, the Chinese playbook is is
tit for tat is reciprocity.
So they’re going to do something to
retaliate.
The Chinese are very careful that they
don’t like to do things over their own
economy.
And never has that been more true than
right now with the economy looking sort
of fragile and she really trying to get
things going again.
The other question, too, is how do you
reciprocate to a tick tock that, you
know, if you hit an American company in
China right now, when you’ve had Xi
Jinping coming out of the hospital here
trying to convince foreign investors in
San Francisco, as well as earlier this
year in China, that actually they’re
very welcome and they want more of it is
going to completely undermine that
message.
So they’re kind of walking a high wire
here and how they actually can respond
to this.
It’s almost the news gods.
Listen to us.
Breaking news right now, the US Senate.
So the bill has been passed $95 billion.
That’s the aid package, Ukraine, Israel
and Taiwan.
The read headline just crossing the
Bloomberg terminal as of course, they’re
just about to wrap up the voting there
on the floor of the US Senate.
Jenny, bring it back in.
As we talked about this, what do we
pivot to the EU and this new
investigation going into procurement of
medical devices along the same lines of
protectionism
exactly as all the same theme.
And this almost like once these blocs
and these governments are looking into
sort of China’s overcapacity,
protectionism, the rules of the game,
it’s fanning out to different
industries.
So now it’s to do with medical
procurement.
And again, like Schultz and Treasury
Chief Janet Yellen in Beijing this month
have talked about is unfair playing
field that companies experience.
Now the EU is this other probe as to the
EVE probe they already have ongoing.
That’s right.
They’re investigating Chinese sort of
involvement in wind farms in Europe.
So this is a whole sort of battlefield
now of industries where the EU is really
putting the pressure on China to say, we
don’t believe this is fair and it’s
really criticizing the entire structure
of the Chinese economy, because the way
the Chinese economy is work, you know,
the government offers subsidies and tax
incentives to, you know, industries
favors.
And they have pledged to sort of treat
foreign companies like they do national
ones.
But then, you know, you could argue that
national companies, you know,
particularly sort of predictable in a
way that’s just due process, either, you
know, Xi Jinping will be going to Europe
the beginning of next month, his first
trip to the European Union in five
years.
And so he’s all of these things, you
know, he’s got a lot to talk about when
he goes there.
He’s picked three countries, France,
Serbia and Hungary, which are all seen
as being a little bit more friendly
towards China or at least speak with
their own voice and don’t sort of just
speak in line with like the US and the
European Commission.
So this is a very interesting
relationship right now.
For a long time, Europe is a buffer
between the US and China and it seems to
be tracking much more towards the US
position sort of.
That puts a lot more pressure on China
at a time when its economy is already
under so much strain.
Jodie Marsh, our Greater China editor
there with the latest as well as, of
course, to recap, that bill in the
Senate did pass when it comes to aid to
Ukraine, Israel, as well as Taiwan.
But also included in that is, of course,
that tick tock sale provision as well.
All right.
Let’s move on to talk a bit more about
the South China Sea in the way Southeast
Asian nations have long eyed tapping the
energy riches of that area to help grow
their economies.
But a fleet of Chinese fishing boats and
a giant vessel dubbed the monster are
making sure that won’t happen any time
soon.
That is.
A subject on today’s big tech.
And for more.
Let’s bring in our Southeast Asia
government reporter, Philip Hyman.
He’s in Singapore for us.
Philip, a very interesting story here
about how you think she’s fleet is
winning in the South China fight when it
comes to energy.
Tell us more.
Why.
Well, you know, we’ve seen over the last
several months tensions flaring between
the Philippines and China, of course,
over an area the Spratly, it’s called
the second Thomas Shoal there.
Of course, I’m sure all of our viewers
would have seen footage of water cannons
and so forth and near collisions, in
fact, actual collisions between Chinese
and Philippine ships.
But at the same time, there are, of
course, economic resources at stake.
We’re talking about, of course,
trillions of cubic feet of natural gas,
billions of barrels of untapped oil
reserve in the South China Sea that for
years a lot of these Southeast Asian
countries would love to kind of get
their hands on, but has been prevented
from doing so because China has
established a very strong militia, very
strong Coast Guard fleet, and has kind
of kind of blocked access to those.
Right.
Philip, remind our viewers what what’s
at stake here.
Well, you know, what’s the big picture?
Well, I mean, you look at the current
situation, of course, tensions are
riding high.
There’s kind of we have the US backed
review of the lives in the Philippines.
We have a very assertive Chinese posture
and now we have Manila in between,
trying to more assertively take
take a stronger stance on China’s claims
in the South China Sea, which were, of
course, ruled baseless by a UN tribunal
back in 2016.
How does this play out?
Of course, you know, history shows us
that there have been clashes, violent
clashes, deadly clashes, in fact,
between competing ships in the South
China Sea in the future.
Of course, you know, nobody wants
another conflict.
We already see what happening in
Ukraine, where you see one happening
in Israel.
And of course, you know, there’s a
growing anxiety among Southeast Asian
nations that what’s happening in the
South China Sea could spark another such
conflict.
So, you know, but with regards to oil
and gas reserves, this is something that
is very important for nations like the
Philippines, for Vietnam, which are the
Philippines, of course, has an emerging
energy crisis.
It desperately needs to tap those energy
supplies.
President Ferdinand Marcos has talked
about the need to do so urgently.
So this is his lieutenants.
This is something that we’re going to
start seeing more assertive posturing
happening in the near future.
It seems like it’s interesting that
there’s so much news around this area.
I mean, we thought last year maybe
Taiwan could be one of the most kind of
dangerous places to really look at.
But now we’re really focused on
Southeast Asia in the South China Sea in
particular.
Is this sort of the new sort of arena, I
guess, where we’re going to see tensions
flare up?
I wouldn’t discount tensions over Taiwan
any point, but I would say there’s
absolutely those rising anxieties within
Southeast Asia.
We are starting to see militaries across
the region establishing, spending more
money, reinvesting in their own military
modernization programs.
In fact, I just think this week
Singapore got its fourth invincible
class submarine from Germany and
officials are there at the moment.
There is a sense that nations here need
to really be ready, even if they are not
aligned, even if they’re not with the
U.S.
specifically or with China specifically,
the chances of a potential conflict
which could force them to to adapt a
more defensive posture.
Right, Philip, thank you.
Philip Hammond there, our South-East
Asia Governments.
Reporter And more.
By the way, on today’s big check, you
can check that out.
Longer form subscribers can head to the
terminal and a big take go on your
Bloomberg on the website it’s on
Bloomberg dot com.
Speaking of geopolitics and more on the
breaking news a few minutes back here in
the U.S.
senate passing
this bill.
Here is US president joe biden, white
house outward a statement and they’ll be
signing this bill into law on wednesday.
Just talking about certainly the urgency
of this given to the many fronts, of
course, that this bill tries.
I mean, they bugger all up and one.
Right.
Which is interesting that we kind of
have to highlight in particular the tick
tock sort of implications, because we’ve
heard that the company is willing to to
fight this out in a long, prolonged
legal battle because in one way we
talked about 170 million users that are
at stake here right now.
So the company thinks in that part.
Now, they have a defense here that, you
know, you could argue for freedom of
speech sort of argument here and
possibly have a chance of winning it.
But certainly, you know, this is going
to go on for some time.
I believe it’s it’s not over just yet.
No, we haven’t.
No, we’re just beginning.
In fact.
Yeah.
This new chapter on the specific issue.
We’ll bring you all the latest out of
this national security package.
Of course, President Biden will be
signing this into law on Wednesday, 18
minutes back, all to some breaking.
A lot of been busy this hour.
Inflation out of Australia on is longer
higher for a longer narrative we thought
we forgot about it for a few days and
this print has reminded us nope I’m
still here 1% on inflation at the
highest end of forecasts.
Markets are reacting.
Aussie equities are now flat, were
higher earlier on Aussie dollars on a
rocket.
As with your yields over there in
Australia, plenty more ahead.
This is Bloomberg.
I just want to recap the breaking news
here of, of course, the U.S.
Senate approving that bill.
That is a package to Ukraine, Israel,
Taiwan.
Also part of that is that tick tock sale
provisions.
So certainly we’re hearing from the
Senate majority leader, Chuck Schumer,
briefing the media at this evening in
D.C.
We also are already heard from Zelensky
of Ukraine.
You know, say that he’s grateful to the
U.S.
Senate for approving that aid package to
the country.
So we’ll see if we hear any more about
the tick tock side of things as well.
But President Biden has said he will
sign that aid bill into law tomorrow.
Yes, the weapons are also headed to
Ukraine.
Yeah, this this week we go back here in
Hong Kong.
Hong Kong is said to follow in the
footsteps and we’re talking cryptos.
And ETFs here of the U.S.
are listing a batch of cryptocurrency
ETFs.
More on this story right now.
And of course, it could come in the next
few days.
We’ll see.
So actually goes.
Our Asia finance report is with us right
now.
I guess the question is how will it will
obviously help Hong Kong, but how will
it help?
Also, given the fact that in the US, for
example, some of the flows into those
Bitcoin spot ETFs arguably have cornered
the bulk of the market already.
Yes, you’re right, David.
So what what has happened is Hong Kong
has one of the advantages that Hong Kong
has in Asia is that this is a first
mover advantage because this is Hong
Kong is the first in Asia to allow the
spot Bitcoin and ether ETFs.
So ether is actually the globally the
first move in Hong Kong.
So these are the this is the very big
advantage for Hong Kong because in Asia
there are several investors, a lot of
investors, institutions who want to who
have been seeking to invest in this
spot, Bitcoin, an ETF of funds, but then
they not getting an access because it’s
all the way they have to go to the US to
do that.
I mean, they have to invest in the US to
do that.
And now that that field is open for them
to do so in Hong Kong in the same time
zone in Asia.
So that’s a big, big advantage when it
comes to, you know, issuing these and
allowing this to be traded in Hong Kong.
That’s one of the big advantages over
here.
But to to kind of, you know, also add to
your second part of the question about
how how will this be as big as the US
market?
I think that, you know,
obviously US has the deepest ETF markets
globally and the big names like, you
know, the BlackRock and the Fidelity as
we know are leading the Bitcoin spot
Bitcoin ETF in the US.
So in the absence of this big this these
big names in Hong Kong, it could be a
little less I mean it could be actually
a fraction of what the US is seeing in
terms of the size, the flows of the
market, but it is nevertheless a big and
important step by Hong Kong, which wants
to be, you know, a digital hub in Asia.
So that’s a very important this is an
important move in that respect.
Yeah.
As you mentioned.
Right.
Some of these firms, prospective issuers
harvest China Asset Management, not
really the same in terms of recognition
as maybe a BlackRock.
So we might not have that effect here in
Hong Kong.
So I should thank your Asia finance
reporters of Asia to they’re joining us
in Singapore on what’s really going on
here in Hong Kong.
We’re taking you to, of course, war.
If you want to read more on the city to
our, of course, insiders guide to the
Money and people shaping up our finance
hub in the new Hong Kong Edition
newsletter that’s out every Thursday.
You can sign up through the website
Bloomberg.com Slash newsletters.
I’m looking at markets here right now.
It’s really these trading debuts that
we’re tracking this week that continue
to be.
Yes, pretty ugly.
Mobvoi is the one today.
This is, of course, the Chinese air firm
that’s backed by Google.
That’s down some 19% despite technically
catching a massive bid this week.
And so at least Tianjin construction’s
doing a little bit better for day to.
Yeah, rebound today also coming in
unexpectedly is this Heidi CPI print out
of Australia here so a 1% Q and Q that’s
a market reaction so far.
Yeah.
There’s lots of stories to tell you
about in the next hour.
Of course.
Keep it here.
You’re watching Bloomberg.
Welcome back to the China show, whose
look at your Hang Seng is a half hour
into the session.
It really is kind of the top of the
world.
Take a look at how its performance has
been this week.
We’re up for a third straight day.
I think we’re seeing gains about already
5% so far, just the last three days or
so.
So certainly there is a rally underway.
Shares gaining another 1% day.
And we’re now looking at I’m just
looking at live data here.
So 18 straight days now on net inflows
into Hong Kong from mainland China.
So net buyers continuing.
And in fact, turnover has been also
picking up there as well.
We’ll talk about that later.
Broadly speaking, though, Asia is also
feeling the tailwind, by the way, coming
off a very good session on Wall Street
overnight.
On top of that, after the close, you had
the Tesla story coming out in.
Of course, on top of all of that, then
you also getting us futures pushing
higher, a third of 1%.
So overall, we’re better by one and a
half percent.
Most markets are on the way up 2% in the
Nikkei, 2 to 5.
By the way, we haven’t even talked about
dollar yen closing in on 155.
Right?
Yeah, You’re a dollar on your screens.
Looks to be broad based across markets
across sectors to your yields pushing
lower right now.
What’s standing out though and one of it
is on this board should be on your next
board as well.
Aussie as assets reacting quite badly to
that hot CPI print 30 minutes back.
So Aussie equity markets have just about
erased and then we’re coming off a
little bit lows right now, quarter of 1%
Aussie dollars on a stronger footing and
rough 14 basis points on your Aussie
three year yield.
Yeah.
Let’s bring in our Bloomberg and line
strategist Mary Nicolau.
Mary, it seems like big tech’s in the
hot seat really and it’s really helping
to lift the mood here in Asia.
Do you think we can last for the rest of
the week like this?
Yeah, it really all depends on earnings.
So we’re going to have a few companies
coming through over the next few days
and we’ll hear from how good their
earnings are, how good the outlook is as
well, because it looks like overnight,
even though Tesla’s earnings were bad,
the market was still looking for an
excuse to rally.
So especially after such a bad week, any
silver lining that they could find in
terms of Tesla looking at cheaper models
or potentially focusing on AI, but
they’re looking for some reason to to
rally and an earnings will be the key
trigger.
The.
Speaking of triggers, something seems to
be brewing.
And, you know, we’ve been here before.
The caveat here in the Chinese markets
where you you know, you’re getting
periodic rallies within within a bear
market.
How are you thinking about China these
days, Mary, particularly given the
outperformance we’ve seen here in Hong
Kong this week?
Yeah.
You know, it’s interesting with China,
because what you’re looking for still is
some sort of fundamental support to
really drive this rally.
And so far, we haven’t gotten much
there.
Whether we’re looking for on the
consumer side.
And some of the data has been
disappointing, to say the least.
We still have deflation, so it’s hard to
get very excited from a fundamental
perspective.
But obviously the last few weeks has
been the trend has been more of a more
of your friends when it comes to some of
the equity markets in some days.
Right.
But it hasn’t been it’s been more
intermittent than a real strong rally.
I think where the the the where it lies
is really what we’ve seen in bonds and
China bonds have been quite resilient.
And and they’ve been the pillar of
strength in terms of where we’ve seen
the rally move.
And I think there there’s still
potential upside there because if we’re
going to see if there is a deflation
persisting, that’s still going to be
supportive for bonds going forward.
And Mary, I mean, we’re we’re really
focused on tech, obviously, this week.
But, you know, it seems like we’ve
pushed away the Fed story for now.
But I take a look at that Aussie CPI
print that came through where inflation
is easing, but still this disinflation
sort of trend seems to be stalling in
Australia as well, not just the US.
Also, we’re seeing these yields spike
now.
I mean, this higher for a longer
scenario is really playing out here in
some parts of the of this region to.
Yeah, absolutely.
So now it’s not only the Fed, it’s the
RBA.
And almost like, what’s next?
Well, one thing we have seen is is there
is the eurozone seems on the trend of
going in the direction of of
disinflation.
Of course, the elevated oil prices that
we’ve seen over the last month or so
hasn’t been very helpful and that can
trickle through.
But if you look at things like
Australia, like the US, their economy
has been holding up, which has been
quite surprising, especially given how
high rates are.
So it puts a lot of these central banks
in a predicament where, you know, at
least for the US, growth has been
resilient, but for Australia it’s been a
little bit wary in terms of some of the
data hasn’t been as strong as, let’s say
in comparison to the US and puts the RBA
in a difficult position.
But what they’re at the end of the day,
they’re an inflation targeting central
bank and whatever inflation tells them,
that’s what they’re going to do.
So that’s one of the reasons why you see
the swap markets now pricing in less
than a 50% chance of a cut even this
year.
And of course the inflation volatility
is going to be absolutely crucial, which
just means that the focus is still on
data dependency.
Mary, thank you.
Mary Nicola in Singapore for us.
Out of our team, for our clients, all
the work there of course, on IP, go on
your Bloomberg terminal.
Right.
Speaking of these Chinese markets are
about 44 minutes at the cash market
session.
This bullish break so far has been
holding.
We’re talking about a Hang Seng china
index.
We closed above that level yesterday on
i think it’s the 200 day moving average
so far.
We’re holding above that specific level
right now.
The next line in the sand perhaps would
be and these are very close levels to
watch, right.
The 200 and the 6000 level almost the
same.
We’re back to the highest levels almost
at the start of the day since the start
of the year.
So one to watch.
Certainly we’re currently trading 12
points above that 6000 level.
So this part of the Chinese asset world
has been doing well.
Also on shore, fixed income has has done
also quite well here.
Yeah, I mean, take a look.
The borrowing costs there, they’re
basically at record lows here.
Right now.
We talk really about how all this sort
of yields pick up or if people look at
searching for yield in the bond markets.
And you’re certainly seeing that in the
local credit markets.
So we’re talking about these onshore
three year double, a triple A corporate
bond yields, they’re falling to a record
low.
So certainly there has been a lot of
buying into some of these credit markets
here of late.
And of course, we still got to talk
about Tesla.
Yeah, a 13% move up in after hours trade
that’s leading to this next graphic
you’re about to see on your screens.
US futures pushing even higher today.
I think your first key hurdle as far as
this year’s earnings story is concerned,
not to mention a lot of other big tech
companies are reporting earnings the
next few days or so.
Although I’m looking through the next
few weeks, I’m looking at Nvidia in
about a month now.
We could talk about that next time,
though.
Tesla speeding up the launch of cheaper
cars after reporting earnings that
actually missed estimates.
Beth Kendig joins us now lead tech
analyst at tech portfolio I.
Oh fun.
Beth, as always, a pleasure to have your
show and we’re looking forward to
getting your insights on this.
So a Tesla why not cheaper models do you
think they’ll do it?
How big of a game changer would that be
as far as the companies financial so
concerned?
I never get to see you again.
It will certainly drive a number of
vehicle deliveries and things of that
sort.
What is being pointed out, and it’s very
important to realize is that it could
continue to weigh on margins because a
lower price is going to lower the
margins.
The margins are already walking a very
thin line right now,
even though there’s a $25,000 vehicle
rumored, as you likely know, it has one
that is as low as $11,000.
So will it solve the problem that Tesla
faces, which is that in China, they’re
losing market share?
It may not solve that problem.
The problem it could solve, which is
quite important, is that the United
States has been chasing high interest
rates for a long time.
A lot of people want to look at Tesla’s
stock as a musk Elon Musk problem.
It’s not.
It’s an interest rate problem.
That’s why we see the same issues around
Apple right now, struggling to keep up
with being a high priced device and
overall a lower priced vehicle.
The United States could certainly help
spark some new sales.
Again, the margins would likely continue
to remain an issue in that case.
Can you tell us a bit more about what
they can do in China?
I think it was Evercore yesterday that
said, you know, yeah, they can’t really
afford to keep slashing these prices
because this is really going to wipe out
the earnings in the mainland.
Do you think the market is properly
pricing that sort of scenario?
Yes, it’s definitely the bigger deal
because you’re not going to able to
replace that any time soon.
However, as I approaches it, that’s the
piece that Tesla is going to have to
execute on.
So what we’re seeing is a moment where
it’s a little too early for software.
As you know, hardware has been a huge
boom with 100 moment last year from
NVIDIA.
But A.I.
Software, we’re not in that cycle right
now.
And that’s what Tesla really, truly
needs in order for its stock to resume
where it was before the Wall Street
darling and that software cycle, if I
were to give you my best estimate, would
be more of a 2026 discussion.
So between now and then, they have a
China problem, and how they solve that
China problem will not be an easy answer
for Tesla.
So, Beth, you mentioned if if rates are
the main culprit, why margins have
multiple top margins by multiples have
compress and the stock is down.
What will be the best determinant
whether or not the stock has bottomed as
well?
Do I look at rates or do I look at
margins?
Those two will go.
Those two will move together because
they have to continue to lower average
sales prices to keep up with the higher
costs of the vehicle to the consumer.
Obviously, the rates make the vehicle
more money per month to the consumer.
So those two will be in sync.
The minute those margins bottom, though,
or the minute we start to get a more
dovish Fed.
This is going to be an excellent buy.
This stock is deeply on sale.
It’s very rare that I can look at a meg
seven stock that is deeply discounted in
the way that Tesla is at.
This thing continues to go lower.
It’s an attractive entry eventually
because this company is not going to go
out of business there.
And I leader if you’re patient enough
and all of those come together to don’t
get too cold, ice cold on a stock like
Tesla, which is arguably one of the
better top ten stocks in the market.
So certainly there there’s more room for
improvement here.
I’m just wondering, you know, given what
you’re seeing in the Max seven right
now, it seems like Tesla’s the weakest
link.
Where else are you looking for, you
know, in terms of contributions to to
revenue or even CapEx outlook for air,
What stands out to you among the seven
now?
Yes, I would say Microsoft has a very
big report this week.
This has always been known as the cloud
bellwether.
It is now the bellwether.
And the reason why I can use to be very
important is that this is where the real
growth is happening.
If you look at certain pockets outside
of that, we’re seeing a lot of
deceleration, if you look very closely.
So we want to see Microsoft continue to
do what it did before.
Now, two quarters ago, I had a three
point contribution.
Azure, one quarter ago it had a six
point.
So it doubled.
We’re talking down about $75 billion
segment.
We continue to see that ramping up.
I think the market will be very excited
to see that from the enterprise segment,
from enterprise companies.
Of course, when it comes to big tech
CapEx, Tesla’s report could not have
been more bullish in terms of the 100
equivalents and how they grew those 130%
across the board.
Big tech has those big pockets.
It is fueling a lot of this growth cycle
that we’re in, in terms of I.
Right.
Others reporting this week and apologies
that we’re going through one after the
other.
I mean, there’s just so much happening
this week.
Beth Metta, how are you thinking about
this
matter is a very, very interesting stock
because as you know, last year it was
known for the year of efficiency.
They really tighten their belts.
Margins expanded, greatly expanded.
What we want to look for right now is
will matter become a full fledged stock.
This will be shown in the average
revenue per user.
We’re already seeing this phenomenal
rebound.
It was only 2.5% growth last year this
quarter, and it’s going to be 25%,
especially in the United States and
Canada.
So they’re basically using AI to greatly
improve their average revenue per user.
Eventually, Metta will become a full
fledged AI stock.
When that moment happens, it can be
quite bullish.
Since ADTECH is so incredibly cash
associate, you have that perfect
combination where Tesla
with high interest rates, it’s kind of
kicked out of the mix of those with
those large cash reserves, high free
cash flow margins they could only
potentially get better with AI will be
greatly rewarded in the current
environment.
We have an interest rate.
What about the impact on alphabet?
I know they’ve come through with their
strategy, but, you know, they basically
have monopolized the search side of
things.
I mean, does the emergence of Chad
Djibouti, change that any way?
I know they fended off multiple threats
in the past before.
Is this time any different?
Yes.
So what we’re seeing is even a surge
puts up a decent growth.
The market is not convinced that AI is
driving that.
And if AI is not driving that be due to
lack of engagement on their products,
then they just have many, many
competitors on their heels.
And we’re talking obviously open AI, but
there’s a lot in the private markets
that is happening right now too.
So you’ll see the market a touch nervous
until you see that direct impact.
And also on Alphabet, I would add, until
Google Cloud starts to be very, very
consistent in the way that Azure has
been an Azure re accelerated over the
last quarter.
That’s the other thing the market will
want to see.
If you’re truly having an impact, you
should accelerate from here.
It should be consistent and it can be
quite lumpy.
So until that smoothes out.
Right now Alphabet will eventually it
can be an AI player, but the timing is
more difficult to predict because it’s
been lumpy.
They’ve went from being a leader to now
a laggard in terms of AI capabilities.
So about all things, all this being said
and other things are still
on the table right now.
And given the drop we’ve seen over the
last few weeks.
So tell us how you’ve been managing your
exposure.
What have you been adding to most?
What have you been reducing?
What are you excited about going into
these other earnings reports?
Of course, to.
Yes, we continue to accumulate
semi-conductors at lower prices.
As you know, last week was brutal for
certain stocks in video, of course, But
there’s other AI accelerators and
companies that are contributing to AI
data center.
If we can get those at lower levels,
will gladly take it.
So we have been trimming any area that’s
not a semiconductor data center
beneficiary and and doubling down on
those.
You have many competitors in video
coming online right now.
When I say many, I’m talking more around
AMD.
And then you have Broadcom, which is
more in the custom silicon market.
And then we also have this memory battle
that’s going on right now where
accelerators are competing on memory,
not computing power.
That’s very key to understand how 2024
will unfold.
So there’s some memory beneficiaries as
well that are important.
And I’m sure you talk about it on your
program as well from South Korea.
United States happens to have Micron and
then there’s equipment suppliers for the
memory.
There’s a lot of stocks to look at in
the data center, Nvidia being the
bellwether.
But, you know, there’s a few you can
look at and we are doubling down on
those.
Beth, always good to have you back
there.
Lee, tech analyst at Alpha and joining
us from Boulder, Colorado, here.
Take a look at what’s going on when it
comes to Sensetime.
So speaking of AI.
So it seems like this company, which
really has been was a pioneer when it
comes to AI in China.
They’re launching a new A.I.
model now.
So we’re seeing the shares really flying
here, gaining double digits on the
launch of this new AI model.
We’re seeing there’s any more details on
it, but there you go.
Stock up close to 30% div.
There we go.
Also flying right now, yields over in
Australia’s short dated yields.
Three year bond yield specifically up
the most since June of last year.
On that CPI beats we’re up 1314 basis
points and that Aussie dollar is on a
tear and we’re seeing a little bit of
weakness coming through in the equity
markets.
Are we going to show the Aussie ten year
yield?
Why not or not anyway?
Maybe later.
Maybe later.
Right.
Just ahead, why the slump in the
Indonesian currency may keep the bank
Indonesia rate decision, of course,
later today from cutting rates for now.
That’s next.
This is Bloomberg.
All right.
When it comes to Aussie assets, as
promised, and there you go, 17 basis
points spike when it comes to that three
year yield here this morning.
This on the back of that CPI that came
in better than expected at 3.5%.
So that actually doesn’t change the
calculus for the RBA when they meet next
month.
You’re seeing 13 basis points higher for
your Aussie ten year year.
That brings us back to levels that we’ve
seen what back in June wasn’t it?
Yeah.
Biggest jump since then it gives us
think about really Yeah.
Relevance story right And then you got
to wonder what you know the impact on
currency is obviously just given the
dollar strength and you know front and
center is really what’s going on the
rupiah right where we’ve come off some
of the lows, but we’re still talking
about a rupiah that’s been down 5% so
far this year and really coming to the
range of the pandemic lows here right
now.
And maybe that’s why today by there’s
there’s a hint, maybe a slight, slight
pivot maybe to a hike.
Yeah, I think a bit of a hawkish tone
with this exchange rate.
Maybe we should all pack our bags and
visit Clare Joe, who is in Jakarta for
us at 16,000.
The exchange rate.
That’s hard to argue with.
Clare, I’ll bring you in.
Of course, Claire covers Indonesia’s
economy for us as well as Southeast
Asia.
Claire Well, what are the chances of an
actual hike or what the statement might
look like given all the complications
around inflation, the weak currency,
what have you?
I think what we can expect today out of
Bank Indonesia is for the decision to
come down to the wire.
The central question for policymakers
will be is the rupiah weakness going to
be persistent or does it look like it’s
going to wane any time soon?
Because if we look at the rupiah, as you
mentioned, it has been recovering and
stabilizing a little bit this week,
although it did have a very big drop
last week.
And it’s still Asia’s worst performing
currency this month.
So for Bank Indonesia, they’ll want to
see if it’s persistent, they’ll want to
act fast and act now before it weakens
further.
However, there is a sense that cooler
heads may prevail for today and Bank
Indonesia might opt instead to hold the
rate at 6% and instead dial up its
hawkish tone and see we’ll ramp up the
interventions in the spot.
Deliverables and bond markets will raise
yields to lure inflows and instead opt
to run down its foreign exchange
reserves while waiting to see how these
global events pan out.
If the Federal Reserve and the Middle
East.
Yeah, it seems like, you know, when it
comes to what we’ve been seeing this
tightening cycle from Bank Indonesia, it
really wasn’t about taming inflation per
se.
It was really about ethics stability.
So so how low is that bar now to
actually hike?
Yeah, we’ve seen this dilemma across all
emerging Asian central banks.
They’re being squeezed between their
currencies and the Federal Reserve.
And that pressure is more acute for Bank
Indonesia, where its mandate is currency
stability and it has knock on effects on
inflation as well because we rely on
imports for food and fuel.
However, Bank Indonesia has the benefit
of hindsight this time around.
In October, if you recall, it surprised
markets with a rate hike after the Hamas
Israel war.
What it ended up doing during that time,
though, was it ended up spurring more
outflows as investors view this as some
sort of panic hike.
So Bank Indonesia will want to avoid any
sense that it’s nervous and it’s
panicking in the in the wake of this
volatility.
So what it might end up doing is say
we’ll calm the markets, we’ll wait for
things to calm down.
We’ll rest on interventions for now and
hold the very
strong.
All right, Claridge, I think you are
Indonesia economy reporter on what to
expect out of the central bank later on
today.
We got plenty more ahead.
This is bloomberg.
All right.
Is a day three of just momentum and just
this rally continuing when it comes to
Hang Seng, as well as the share market.
We’re up one and a half percent.
You know, you take a look at what’s
really driving this.
And one stock in particular we just
talked about, which was sensetime.
Yep.
That’s really lifting this benchmark and
announcing this new A.I.
model and that’s sending the shares.
What double digits gains this morning?
Yeah, and that’s really helping this, as
you point out, of course, gaining as
well.
I think we’re up 28%.
Let me just double check where we are
right now as far as the stock is
concerned.
Quite substantial to say the least.
Almost the opposite, in fact, the
opposite of what the next stock you’re
seeing on your screens did yesterday,
which is the bubble tea maker chart by
Dow, fell 28%, fell as much as 40% in
the first day of trade.
It’s continuing to fall 7%.
The debut today is Mobvoi, which is an
AI play as well, attaching beauty rival
products 17% down Tianjin Construction,
which debuted yesterday.
Not as good.
It’s paring some of the gains.
At least it’s up now.
Some of the other things we’re tracking
here.
Lithium, Kenji, lithium out with
earnings.
It lost there.
That stock is down a and a share market
EVs and also Shum is actually also
seeing a nice city out raising the price
target on show me
I guess on the back of the CEO talking
about how the margins are going to look
like this new for this new model.
I mean it’s an EV stock now it seems but
yeah the lithium on that why they lost
$4 and 6% we got but they want to count.
This is one Bloomberg.
Bordeaux.
All right.
11:29 a.m.
in Tokyo right now.
Japanese markets heading into that lunch
break.
And yeah, they’re pretty happy, right?
Talking about 2% gains, the Nikkei 2 to
5.
We’re not even talking about our yen
here right now.
I think we’re still around those
intervention levels and getting very
close to 155 yesterday when we heard
from Suzuki sign, that was the clearest
sign yet.
People say strongest sign, at least from
officials, that they may be ready to
intervene.
But, you know, no news yet.
We’ll bring you the latest.
Of course, if they do, the rest of the
region doing this.
The 2% in Japan, as one is pointing out,
we’re also doing quite well on a
regional basis.
And a lot of this also has to do with
the fact that Hong Kong has been doing
very, very well.
We’re up one and a half percent and the
benchmark U.S.
futures are also pushing higher as well.
And
nearly everywhere you look, at least on
this specific graphic, is showing you
some green strength in Asian affects
most, if not all.
Major sector groups are higher.
It’s up 3.4%.
That’s really down to the move in sense
time and $0.10 actually doing quite well
again, about an hour into the session.
Asia extra pan also better by one and a
half percent.
All right.
Let’s talk a bit more about bonds.
I mean, we’ve talked about what
exhausted the tech discussion today.
Why don’t we talk about the Fed?
We never talked about this.
That’s been a while in business.
Our next guest made a call last year
that the Fed will not cut until after
the U.S.
election in November.
Let’s see what Gordon Choi thinks now.
Managing director and head of fixed
income at Ping en of China Asset
Management, Hong Kong.
You must feel vindicated, Gordon, that
the market has finally caught up to what
you said as early as last September when
we thought you were nuts.
Friends.
Do you still feel that this view stinks?
I still remember.
I have a follow this will.
In fact, US inflation has become more
sticky at the moment compared to a nice
time in September.
And the CPI change was 3.8% year on
year.
Two weeks ago when you announced the
whole yield curve, plunge surged 20
basis points across, you know, from the
short end up to 30 year.
And it caused significant pressure on
risky assets as well.
And in fact, I think bond investors
reckoned that the Fed policy stance
actually could not
and likely turn dovish when you economy.
So we see the end and also inflation
numbers are still quite a distance away
from the FSA.
You know 2% target even though is the
core PC in fact not the headline CPI or
the core CPI.
But after all, you know, from
Bloomberg’s Omar E CFC, the economic
forecast forecaster function in Fed Core
PC,
year on year, we edge down to a 2.3% in
first quarter next year, but still
before the elections.
And there is no way for the Fed to turn
dovish.
And I guess to address the premise is,
is that we because inflation has been
sticky or is there a political element
to that call on no cuts before November?
I would say a grave right now.
In fact, they have real interest rates.
If we look at all these are nominal
inflation expectations and real race.
In fact, I will say the monetary policy
is about right because the US grew
interest rates across the whole yield
curve.
They are positive.
Looking at the short end, you know, if
you consider the nominal overnight the
Fed funds rate at 5.3%, beating the
headline CPI, in fact it is still 1.8%
in real terms.
So depositors are actually making money,
they are increased.
They have a you know, their purchasing
power is growing just by parking in some
interest, risk free interest free money
market rate and money market funds.
I mean, money market funds.
So if that’s the case, why take the risk
next that NVIDIA can plunge to 10% in
one day?
Right.
So even further, this is already sucking
on Nvidia stocks, but I’m I’m bullish on
this stock anyway the air because
they look at you hedging now so so what
does it mean for treasury yields and the
direction of travel now.
I mean it seems like 5% was sort of a
ceiling.
Can I break above that or is that when
you start to see more of your clients
say, I need to lock in these yields at
these levels when we look at this kind
of benchmark, your benchmark my favorite
strategy strategies that Yen Ming and
his mom beat BMO equities terms and in
fact if you look at ten year for example
basically it reflects to try to tree of
policy.
You know in the medium term how low how
the trough of these overnight funds can
reach and also in the in trouble the
demand supply dynamics of the US
treasuries is also a key determinant and
when we look at.
November is quietly refunding
announcement by the Janet Yellen.
They actually shifted it to the balance
of the market.
The tone went from, you know, going up
to a 5% testing even higher, back down
to as low as 3.8% in late December.
So the supply demand dynamics, you know,
short term can make the market deviate
from the, you know, central kind of
tendency, which I bracket for two, four,
4.5%.
And in this episode, I do think 5% is
such a big you know, I do think we will
have reached that kind of level this
time because in Fed monetary policy, it
is actually working.
It is in Fed quite restrictive.
And James Bullard, the retired signals
Pat president, he was actually in Hong
Kong two weeks ago and also at a
conference.
And I met him in person.
And in fact, he’s advocating that
interest rates should go down just so
that your policy stance is not so
restrictive.
Otherwise, there will be a more
significant downturn in the growth
ahead.
But personally, I do not buy this will,
because actually, apart from the fiscal
generosity that people have already
mentioned, fiscal largess, I think there
is also an additional kind of factor
coming into play.
It’s the industrial policy.
There’s supply chain diversification.
And all of this will add cost pressure
in trade across prices down the road.
So that keeps rates at least the low on
the next cycle, higher than the last
cycle.
How are you thinking about duration at
this point in time?
Not time.
I advocate just a in the short end,
meaning two years or less.
In fact, you can write a benefit from
that November December kind of plunge as
the market was pricing in and extreme as
a 150 basis points at one point.
And on the other hand, in fact, in this
time of hour when interest rates are
moving higher from in the ten year 3.8
up to now, 4.6, it was is actually very
defensive, not much much of market
losses.
So two years or less is still the time
to advocate, to just package.
And these are short end.
And in fact, in the 18 month time frame,
even though I’m still saying that the
November elections before that no fat
move.
But down the road, when the PC numbers
are becoming more friendly, in fact, the
fact we really, really like to lose in a
bid down not as restrictive as currently
and is just what those senior Fed
officials are
saying.
So you say in terms of strategy, focus
on the short end.
You don’t think the longer is going to
move too much from here on?
I think no, no.
And we’ll close out some mark to market
pain from time to time.
So, for example, I don’t think Janet
Yellen would certainly shift again and
increase the long supply at least before
the election.
But who knows who.
Whether you’re more tired, the Treasury
secretary may have a different stance.
So I don’t want to take that risk.
Okay.
Gardner, nice to see you.
Yeah, you’ve been right so far.
Let’s hope you well, stay right in a few
months and we’ll.
Yeah, we’ll talk more.
Let’s talk in November.
Before that, Gordon Taylor, that MD head
of fixed income Ping an of China Asset
Management Hong Kong.
Okay.
Just ahead, why tensions in the South
China Sea could impact economic
development of some Southeast Asian
countries.
A proper in-depth look.
It’s coming up next.
This is Bloomberg.
Well, the US Senate has voted to ban
tiktok’s ownership by Chinese company
Bytedance.
The measure, which also includes aid to
Ukraine, Israel and Taiwan, won sweeping
bipartisan approval.
Now lawmakers are worried about the
app’s collection of data from more than
170 million American users, as well as
its potential for propaganda purposes.
The bill now goes to President Biden’s
desk to be signed into law.
Now, as territorial tensions simmer, and
certainly the bigger theme here still
and we’re talking about the South China
Sea here.
China’s coast Guard has been accused of
harassing supply boats heading to a
Philippine military outpost.
And the latest incidents that took place
back in March was actually the sixth
such incident in eight months that
Bloomberg Originals has been looking at
why tensions are escalating in these
Pacific waters and why Beijing and how
Beijing’s actions are heightening the
risk of a confrontation with the US.
These two ships are from the Chinese
Coast Guard and the ship they’re
targeting with high powered water
cannons is a Philippine supply vessel.
We’ve been here for almost 3 hours and
the situation has gotten more tense.
An international court says the
Philippines has the right to extract
resources in these waters.
Since the threat has grown, we must do
more to defend our territory.
China doesn’t see it that way.
We haven’t wanted a challenge in terms
of jungle hygiene, But the words HBO
give us, we’ll shoot.
It’s the sixth time in eight months this
kind of incident has happened, and it’s
a growing problem for the world.
The Philippines is an ally of the United
States.
Second, Thomas Shoal is the most
dangerous flashpoint today between the
United States and China.
This is truly a crisis waiting to
happen.
China and the Philippines have wrangled
over control of these waters for
decades, but in the past year, tensions
are close to the highest they’ve ever
been.
Why?
We are onboard the Philippine Coast
Guard ship in the middle of the South
China Sea.
And this is the closest we’ve ever been
to a Chinese Coast Guard vessel.
It seems to be blocking our way.
Philippine President Ferdinand Marcos Jr
is keen for more journalists to see the
increasingly fractious confrontations
with Chinese vessels.
The Philippine Coast Guard vessel was
escorting this green boat to second
Thomas Shoal.
It was a routine mission to rotate and
resupply troops on this rusty ship from
the World War Two era that’s been
stationed there since 1999.
A grounded ship known as the Sierra
madre has become a de facto base for the
Philippines, who use it as an outpost to
protect its own sovereignty.
This shoal has also been the area of
much tensions over the past months.
There have been reports of clashes and
water cannon being against Philippine
boats even before we came in there.
Second.
Thomas Shaw is part of the many reefs
and shoals in the Spratly Islands, which
are much closer to the Philippines in
the South China Sea than China.
The waterway encompasses 1.4 million
square miles larger than the
Mediterranean.
Much of the sea is disputed.
China, Vietnam, Malaysia, Brunei, the
Philippines and Taiwan all claim
specific land features.
It’s a thriving fishing zone yielding
some 10% of global catch and a vast
amount of trade transits through.
In 2016, that amounted to some $3
trillion, including more than 30% of the
global maritime crude oil trade.
Critically, it also holds very promising
oil and gas deposits, something that
each of the claimant nations would love
to get their hands on in the coming
years.
If the Philippines can extract these
resources, it could be a real benefit as
the gas field that supplies 20% of the
Philippine main island’s power is
forecast to be depleted within the next
three years.
But here’s the catch.
China claims the biggest patch of the
South China Sea making it difficult for
the Philippines to tap into these
reserves.
China asserts this area is a part of its
territory.
Citing a map from 1947.
In 2016, a U.N.
backed court ruled that China’s claim of
historic rights was unlawful.
And the Philippines has the sovereign
right to extract resources like fish and
oil.
China, of course, rejects the ruling
outright.
But until now, the Philippines has had a
very difficult time to enforce the
ruling, even though it was in its favor.
It doesn’t quite have the military
capacity to enforce those rules and
class itself doesn’t have the ability to
enforce.
It’s not just fishing in energy.
These waters hold military and strategic
value for all of the areas claimants.
And crucially, the U.S.
maintaining freedom of navigation is a
global interest free for the United
States.
And it is important in the South China
Sea.
But there’s also other interests, I
think, that the United States has, and
that is international law of protecting
the ability of countries to really
exercise sovereignty.
And for these smaller countries that are
claimants in the South China Sea, their
livelihood for many of their people
depend on those resources.
So China wants to assert its sovereignty
and deny U.S.
military access in the region from reefs
and corals to military bases.
This is what it’s been building in the
last decade.
Over time, we’re seeing the
establishment of airstrips, of listening
posts, of refueling stations so that
China can send it to that source, to
those islands and to be able to better
patrol much of the greater South China
Sea.
Today, Chinese operate Navy ships.
Coast Guard vessels.
Maritime Militia 24 seven.
Around virtually every feature that is
disputed from the beginning of of our
first sighting of the Chinese navy
vessel.
We were when the Chinese vessels the
whole time, even when we were going back
to the mainland Chinese vessels were
following us.
I felt like we were constantly being
watched.
This is the two island here.
The Marcus government is rushing to
develop the land so it can try to hold
its own against the threat from China.
But this has resulted in tensions
nearby.
Things haven’t always been so heated.
Remember that ruling that gave the
Philippines rights to resources?
Former President Rodrigo Duterte said he
didn’t want to risk a war by trying to
enforce that decision.
So he decided to seek better ties with
China over the U.S..
His presidency was a real test for the
US Philippine alliance.
He ruled out the build, build, build
program, trying to draw in more
investment for infrastructure projects,
including from China.
Chinese loans and grants to the
Philippines jumped from $1.6 million in
2016 to 621 million in 2020.
A lot of those projects, whether they be
from the Belt and Road Initiative or
otherwise, never materialized.
In the last few years of his presidency.
Duterte, they softened his view on the
U.S.
once again allowing joint military
exercises to take place in comes Marcos
in 2022 and relations with the U.S.
got even warmer.
Marcos has embraced a much more
assertive posture in the South China
Sea.
A big part of his strategy is
transparency.
I think the trip managed to somewhat
expose China’s aggressive actions in the
South China Sea.
China has maintained its actions are
legitimate to violent, and I wouldn’t go
for war.
Coffee.
A year into his presidency.
Marcos gave the U.S.
access to four additional military
sites.
Three of these locations are close to
Taiwan, a self-ruled democracy that
China considers its own and has vowed to
take by force if necessary.
Taiwan is always nervous about whether
the United States would come to its aid
in the event that China tried to seize
Taiwan by force.
If the Philippines were to get caught in
a hot conflict with China and the United
States responds, as I believe that it
would and come to the Philippines aid, I
think that that would increase the
confidence of U.S.
allies all around the world.
The U.S.
and the Philippines have a mutual
defense treaty dating back to 1951, And
the circumstances that may trigger U.S.
involvement have become more clear
recently.
If any serviceman, Filipino serviceman
is killed by an attack from any foreign
power, then that is time to invoke the
Mutual Defense treaty.
Any attack on Philippine aircraft,
vessels or armed forces, the South China
Sea would invoke our mutual defense
treaty.
But no one wants to start a war over
rocks and reefs.
Just very recently that the US and
Chinese military officials finally were
able to gather in a meeting that hasn’t
taken place in well over a year.
The last thing anyone would like is for
conflict to arise.
This is not poking the bear, as it were.
We are trying to do quite the opposite.
Still, the combination of new leadership
in Manila, rival claims on resources and
the presence of Chinese and US military
ships mean any accident can lead to
unexpected consequences
immediately.
At one point I was concerned that the
smaller boat would sink and will not be
able to withstand that much spray of
water.
Even from where we were.
We were when we saw how forceful it was.
Waters have been started over a lot
less.
Southeast Asian leaders are anxious over
the prospect of a war between the US and
China, two partners that they depend on
dearly, whether it be over Taiwan or in
the South China Sea.
To work there from our team.
And of course, subscribers can see that
Bloomberg Originals documentary in full.
Right now it’s on the terminal and on
Bloomberg.com.
Also be up on their YouTube channel just
a little bit later on.
Plenty more ahead.
This is Bloomberg.
Here is your trying to brief this
morning a look at what’s making
headlines in national newspapers and
trending on social media.
Well, China’s state administration of
foreign exchange or safe is vowing to
strengthen its supervision.
This is according to a commentary in The
People’s Daily.
They talked about the regulator working
to prevent negative external spillover
effects on the economy and crackdown on
illegal activity.
Meanwhile, the Shanghai Securities News
says that allowing the PBOC to buy and
sell government bonds in the secondary
market could actually boost its monetary
policy toolbox.
And the report also cited analysts say
it could ensure its effective
transmission of macroeconomic policies,
while clarifying that it’s not not QE.
And lots of state media commentary on
US-China relations ahead of Anthony
Blinken’s visit.
Now, Xinhua says the US must recognize
that dialogue is based on equality and
respect, that it says one sided
lecturing or manipulation will not lead
to constructive dialogue with Beijing.
The Global Times, meanwhile, accuses the
US of spreading misconceptions about
China in certain circles.
Its opinion piece calls on Blinken to,
quote, fasten the fast button before
landing in China and for Washington to
remain clear minded and avoid any
misjudgments.
Deaf.
Yeah, there we go.
Okay, speaking of visits here, just very
briefly on sort of market reaction, So
we’re starting things off here with
shares of these shares related to the
West region in China on the back of this
visit.
And President Xi Jinping hosting a
seminar in Chongqing on Tuesday, leading
to the games you’re seeing on your
screens.
From this, we’re pivoting to what’s
happening in Australia where the hot CPI
print has now pushed Westpac to push
back their call on the first RBA cut to
November from September.
Plenty more ahead.
This is Bloomberg.
“Bloomberg: The China Show” is your definitive source for news and analysis on the world’s second-biggest economy. From politics and policy to tech and trends, Yvonne Man and David Ingles give global investors unique insight, delivering in-depth discussions with the newsmakers who matter.
00:00:00 – Bloomberg: The China Show opens
00:04:53 – Tesla ramps up launch of cheaper cars
00:08:13 – Apple’s China iPhone sales dive 19%: Counterpoint Research
00:13:22 – China’s nine-point market guideline is most significant shift in recent memory, says AllianceBernstein’s John Lin
00:26:19 – China’s sovereign fund ramps up ETF purchases to lift stocks
00:29:47 – China slams US overcapacity claims ahead of Blinken visit
00:34:21 – Big Take: Xi’s fleet is winning the South China Sea energy fight
00:41:23 – Hong Kong approves spot-crypto ETFs
00:46:26 – What’s moving Asia markets today
00:52:21 – Global EV and tech outlook with I/O Fund Lead Tech Analyst Beth Kindig
01:03:47 – Bank Indonesia expected to hold rates steady
01:09:36 – Fed to stay on hold until November polls, says Ping An’s Gordon Tsui
01:17:25 – Why the South China Sea could spark war
01:28:32 – The China Brief: Strengthening FX supervision; Blinken in China
——–
More on Bloomberg Television and Markets
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11 Comments
I live in China. Everything is miserable here, but no one dares to complain.
Seriously if there is next life, I wish to be born in any other country, except China.
WHO CARES ABOUT THE CHINA SHOW. WE HAVE TOO MANY MIGRANTS COMING HERE AND WE DONT NEED THEM ADDING TO DESTROY OUR COUNTRY.
YOU PEOPLE STAY IN YOUR OWN COUNTRY JUST YOU DID IN THE PAST.
I DO HATE TO SEE A WAR HERE AGAINST IMMIGRANTS COMING HERE.
ITS BAD ENOUGH THAT YOU PEOPLE BOUGHT LOTS OF LAND IN SOUTH DOKOTA THAT YOU MIGHT GET RUNNED OFF OF.
Ban tik tok
Evil Chinese Communist Party!
' ! ❤️ ! " Responsibility Matters for ALL Lives " ! USA ! '
Biden doing what trump wanted to do years ago. Thank you Trump!
White Lives Matter
If China allows Facebook and Instagram and Twitter, then we could allow Til Tok. 👍
It should be called the China Scam Show.
A 2017 Chinese 🇨🇳 law requires companies to give the government any personal data relevant to national security.
– Recent Chinese "national security" laws require them to assist in intelligence gathering.
If Tik Tok wins their court challenge, does this mean I will get my favorite TV station back? RT- Russia Today?