Skip to main content

tv   Bloomberg Daybreak Asia  Bloomberg  November 21, 2018 7:00pm-9:00pm EST

7:00 pm
haidi: good morning. i am in sydney where major market opens have just happened. shery: good evening from new york, i am shery ahn. >> welcome to daybreak asia. >> our top stories, asia pacific stocks set for a reprieve after a modest rebound in new york. brexit negotiators worked through the night in brussels as there is talk of progress.
7:01 pm
the eu says a deal must be struck soon. and carlos ghosn awaiting his fate as the nissan board prepares to meet. >> third-quarter gdp numbers out of singapore. they have been revived down more than expected. the final number coming in at two point 2%. the estimate was it would be revised down to 2.4%. the advanced estimate had been 2.6%. a bigger revision than we had expected. quarter on quarter, a growth of only 3%. coming from an advanced estimate, 4.7%. year on year, we have seen growth of 3.9%.
7:02 pm
third-quarter number is a growth of 2.2%. net exports may have subtracted more than expected. we have seen weaker exports from singapore, also stronger imports. retail sales have been weaker than expected. we have seen car sales slumping in the lion city. growth of 2.2%. this is only one data point that we got today. cpi numbers out of japan. gaining ground -- a lot that customers -- investors have to keep an eye
7:03 pm
on. ares see how markets trading. fornvestors will be looking reasons to carry on that advance we saw on wall street to read one being speculation the fed may pause its rate hike schedule. forre seeing a go sign stocks in the reason for the nikkei -- nikkeipi and i snapping a decline. we are also keeping an eye on the tech space this after headwinds ind 2019.
7:04 pm
we are seeing a mixed picture for stocks. samsung electronics gaining ground. this is the importance of strengthening corporate governance. these developments have essentially wiped out gains made in recent weeks as questions abound as to where to go from here with the future of the alliance. mark critz in hong kong, let's get you to first word nude -- markets in hong kong. let's get you to first word news. 1%core consumer prices rose in october. dietoj governor told the he remains confident downward
7:05 pm
price pressures will receive -- receipt and inflation targets will be met. ghosn mays carlos learn his fate thursday when he board meets. the ceo has said he will be dismissed, but sources saying directors are split over what to do. ghosn is accused of underreporting compensation and misusing company funds. we are told they do not have enough information to vote. organizationde will set up a panel to rule on the trump administration's latest allegations on china. the detailed report says beijing has done nothing to improve actresses. it was released 10 days before president trump meets his chinese counterpart at the g20. willga will -- wto determine whether the policies
7:06 pm
violate international rules. brexit negotiators working through the night in brussels after theresa may and john paul juncker's -- jean-claude juncker said they made progress. the text must be finalized thursday or a plan summit friday would be called off. warned -- madee point that has been by a number of my colleagues in relation to the vote that will come before this house, a isningful vote on the deal, very simple. if you look at the alternative to having that deal with the european union, it will either be more uncertainty, or could risk no brexit at all. productionabian oil surged to a record 11 million barrels a day as demand climbed and supplies from iran was disrupted.
7:07 pm
they say this was due to a drawdown from overseas inventory. producers in the permian basin are expected to raise outputs even further. global news tweet four hours a day. powered by more than 2700 journalists and analysts in 120 countries. this is bloomberg. let's get back to the markets. tentative rebound on wall street. toan investors, are we going take it and run with it or not be convinced? you take into account these volumes that are lower. has the tenor of the market changed? relief wall street managed to stop declining. of have had several days
7:08 pm
large declines. at least they put a brake on that. asia may get some relief. there is also the possibility the u.s. is looking to be more moderate in discussions between trump and xi. there is the possibility peter navarro will not be included which is optimistic for the talks. there are a couple little things we can get used to. if you look at the way the u.s. equity market finished wednesday, it was not a great finish. great not a it does not look as though equity markets in america really have gotten over the anxieties that have been showing so far this month. asumes are going to be low you said today, thanksgiving day. even asia will not do a great
7:09 pm
deal of business. see a rally today in asia, a bit of a rally in asia. in thethe other move dollar and treasuries, we could see a positive in the rate hike cycle. we are going to hear more next week. we are seeing a dovish shift in the fed? need to see a lot more. there are suggestions the fed is considering the neutral rate is around 3%. if that is the case, that is slightly more dovish than we were seeing a few weeks ago. fed people were saying they were ready to go into restricted territory. restricted territory would mean rates higher than neutral. seewe are seeing people may the rate more like 3%. that would be a change.
7:10 pm
there are several analysts including goldman sachs pushing back and saying, no, we do not see this. the american economy is strong. we are going to see several rate hikes. certainly people will be quick to latch onto the idea if the fed is not going to go much beyond 3%. that would be new information. it could be quickly priced into the market and the dollar would be one of the first places where you would see a reaction. shery: what about the aussie dollar? we have not seen much of a reaction despite the volatility. so much depends on what happens with china. anything good that happens in terms of an agreement, if the 25% tariffs are taken off, that would be very positive. in a good data would also be
7:11 pm
good for the aussie -- any good data would also be good for the aussie. that chinese equities are having a slightly better month is being shown in the fact the aussie is rebounding. 72, thatt gone below is a good sign. but it is early days. we need to see more. the economy is so dependent on what happens. the commodity cycle needs to be stronger. oil production from the u.s. could increase significantly in 2019. overall, this would not be a great thing. over.rst maybe shery: thank you so much. we are less than an hour away for the taiwan open.
7:12 pm
assembler of apple iphones is looking to cut costs in 2019. in an internal memo, they warned they face a difficult and competitive year. we are talking about them being multi-year lows. really no surprise. after all the turmoil that has let's take ag, look at the graphic here to show they have fallen. it has fallen by about 53% from the twee 17 high. in in theyou had gone last part of 2013.
7:13 pm
let's walk you through this. money theys to the are going to be doing. cutting going to be iphone links. note price here because of the reports happening. lackluster demand happening. cut theirooking to technical staff. manager, you are going to come under review. that is a lot of money when you look at it. they are going to cut costs. got,the reply bloomberg after this report did come out,
7:14 pm
they tried to spin it a little bit positively. this is par for the course. the review carried out is no different. exercises carried out in past years. as they tried to reevaluate. see two words, economic challenges of the next year or two, haidi. apple the entire universe, if you will, when it comes to suppliers. >> in terms of, for example let's bring them up so we can show our viewers. they are down by about 25%. makers.e of the big
7:15 pm
what is going on. in terms of google trends, it looks like people are not doing research as much as they have been. we are looking at peak iphone interest, coming in at half what september, 2013. we do know the demand is definitely falling. analyst recommendations. this has not taken a hit. right now, the yellow line is the current price. 170 six dollars and change. analyst recommendations still
7:16 pm
have not come off too much. red sliver this starting to grow. yellow indicating the hold. at least one of our analysts has been saying, looking ahead to the holiday season, don't expect too much of a negative impact. >> thank you. again --to watch something to watch in the asian session. also watching automakers, nissan. why this could be the end of nissan as an independent company. . up next, we talk strategy with a money manager who says there are plenty of bargains to be found in china. this is bloomberg ♪
7:17 pm
7:18 pm
7:19 pm
shery: this is daybreak: asia. i'm shery ahn. haidi: our next guest says investors have a chance of chinesequality companies for a decent discount. but they must be selective area great to have you. opportunity -- an opportunity for stock seekers. them a graphicof story we have been talking about for the last couple of years? long-term structural trends still exist. this year has been one of those years where china and the u.s. enacting tight monetary
7:20 pm
policy. intensified.s business confidence got dented. the second half of 2018, business confidence fell. credit tightening measures got very intense, leading to a credit crunch. now the authorities are cute of the measures put in place. acute of the measures put in place. you have to be cautious. great buyingng opportunities. baidu, alibaba. attractiveing at valuations. haidi: i want to throw up this chart, showing the direct inverse correlation of u.s. financial conditions and
7:21 pm
tightening and equities. get as the report suggests the fed take a pause in the rate hike cycle by spring of next year or earlier, it is going to create more headspace for emerging markets. >> what we have been seeing in the past is, what is in the market at the moment priced in is effectively what we thought was not going to happen. , in 2019, some normalization. peak fiscalg off of stimulus. the fed has a tough job. moving into 2019, there is a greater chance for the fed to pause. the peak ofough
7:22 pm
fiscal stimulus. you are going to have to come back to the emerging markets, where there has been structural reform, financial deleveraging. how does this compare to just cash? is aah, what we are seeing lot of the measures that the authorities in say china have put into place in terms of controlling financial risks are encouraging. a lot of the rules have been put into place, they are quite healthy for the long-term growth. improving lending quality standards. that is the type of thing we are watching. india has been good in forcing good strong financial discipline.
7:23 pm
bankruptcy laws. are thinking selectively across the world where there has been good reform. corporate's have used this weakness to strengthen market position. those businesses emerge a little stronger. >> is that why we are seeing chinese small caps leading the way? the expectation you will get more easy money? interesting that index is leading the market higher. it has been one of the weakest parts of the market all year. potentially the factor of trade wars and tight monetary policy. quite the opposite is happening in the u.s. where the small-cap index is leading the market
7:24 pm
lower. to do with a switch of monetary stimulus. to ease theking burden on private sector credit conditions. that bodes well. the early warning signals for markets. >> thank you. plenty more coming up on "daybreak asia." this is bloomberg. ♪
7:25 pm
7:26 pm
haidi: let's get a check of the latest business flash headlines. headache iss's intensifying -- a suit was filed
7:27 pm
saying they bribed former officials to quote manipulate them and the further the criminal scheme and benefit personally. they are planning major cost cuts. expensesal memo says must be lowered by $900 million and 10% of staff will be let go. >> amazon says they have mistakenly shared customer data with unidentified third policies. it has written to a number of customers to say there in emails and names have been inadvertently shared. due to a technical glitch that fixed.n amazon says there is no need to change passwords. quite theresa may in brussels to fine tune a exit agreement. that is the head of a summit sunday. can she get a deal in place in time?
7:28 pm
this is bloomberg. ♪
7:29 pm
7:30 pm
haidi: 8:30 a.m. in hong kong. just an hour away from the open of trading. positive numbers ahead of trading. relief rally on wall street overnight, albeit with volumes low. shery: you are watching "daybreak asia." let's get the first word news. a singapore's economy grew at slower pace in the third quarter the government previously estimated. this as consumer focused sectors weekend.
7:31 pm
-- weakened. mosth in one of asia's trade reliant economies is seen as easing further next year to between 1.5-3 .5%. the european union is stepping up its budget dispute with italy. free riderays behavior threatens the 19 you nation euro area. the populist government spending plan will only increase debt and fail to produce growth. the eu is taking the first steps toward disciplining italy for breaking roles. >> the structural deficit is way too high. we have raised doubts. we received no answer. that is why we are persisting. we see undoubtedly there is a very serious deviation to our
7:32 pm
rules which is bad for the eurozone and italy as well. it has to be corrected one way or the other. facebook has admitted asking a consulting firm to investigate george soros after the billionaire criticized the social network. they wanted to find out whether financialany motivation calling it a minister society. chill sandberg said it was never any intention to play into an anti-semitic narrative. google is to roll out new policies in europe to allow more transparency around political ads. this follows a year of scrutiny over how internet platforms were points.spread political google will require advertisers to apply and be verified before they can pay for political
7:33 pm
messages. he and plan to judge each of its 1.3 people -- billion people based on social tep closer tone s reality. they are set to adapt the plan by 2021. from severall data departments based on the 's 22 million residents. powered by more than 2700 journalists and analysts in 120 countries, i am jenna degen heart. a look at our asian markets. sophie: nudging higher but not with too much conviction. set to haltdney are
7:34 pm
afford a drop. trading with little change. sluggish market activity anticipated. i want to get right to it, showing what is going on in sydney. beinge seeing the fx 200 by the stock did jump over 32%. look at hyundai arer and kia motors, both slipping. this on a report u.s. prosecutors have launched an investigation to whether recent --alls over engine recalls defects were conducted properly. finally, health care up 0.9%. the regional benchmark is set for the first rise in three days. admitted -- amid light trading.
7:35 pm
we are getting more red flags emerging. singapore's slower gdp. after an update from korea export growth is moderating. moody's does see a negative global spill over especially for high-tech manufacturing economies. that is reinforced by foxconn's that 2019 will be a difficult year. plus, fiscal woes. along with the brexit story. we will talk about those brexit negotiations. negotiators working through the night in brussels after to resume and -- three some may and jean-claude juncker's -- theresa juncker say-claude they made progress.
7:36 pm
our international editor joins us from hong kong. we are seeing lots of hurdles they have to go through including a potential vein veto coming from spain on gibraltar. >> that is the question, can this be done by the summit they want to hold on sunday? half.looking to theresa may is set to go back to brussels on sunday. there is a problem with gibraltar. that to movehave this forward. deadline after deadline and they did not finish yesterday like a had hoped with her visit to brussels so it is down to the wire. heard labor leader talks with nicola sturgeon, plotting how to defeat
7:37 pm
theresa may's brexit deal. can this pass through a skeptical parliament? >> it is going to be a tough pass. if biggest -- they get this text and agreement, they have to get it through the parliament. there are many parties that do not like it. the brexit folks say it is not a real brexit. the remainers do not like it. there is almost no one who likes it. can she cobble together enough votes just to get it through to move to the next step? this long transition? them some certainty and a chance to be able to move
7:38 pm
closer to the union in the future in terms of the parliament, it is going to be a tough road. if thewhat happens deadline is not met? there tends to be a bit of a movable feast for these deadlines. >> these move forward. thinking they may be move it forward a little bit. they have moved past other summits they were going to have. news, at possible good least not a pessimistic spot, they have not cobbled together enough of those votes for a no-confidence vote. they need four. in basically seems to not be daily danger like last week. there were votes that could come swiftly. now that seems to be -- they do not have those votes, the
7:39 pm
no-confidence votes. she lives to fight another day. down to another deadline. to get that text together. cobble something together. to be able to pass it there and bring it to the parliament. internationalior editor with the latest on this. the canadian finance minister has announced his latest update. as a response to the challenges posed by the u.s. taxes and trade. he spoke with bloomberg earlier. >> what we heard loud and clear is we need to ensure we are competitive. with the changing world regulations,around the changing environment around the u.s. tax system, we have to make sure canadian businesses
7:40 pm
can make investments in our economy to continue growing. of the reaction has been, there is nothing specifically for alberta. is there anything you could have done given the differential problem? >> you have to start with an acknowledgment how significant this issue is. the most important long-term thing we can do is get access to international markets. purchase of the pipeline was so important. this economic statement helps all businesses in all sectors to make investments that allow them to write off those investments more rapidly. it will help his misses with significant capital expenditures, which includes the oil and gas sector. wet is not for me to say have solved the problem. it is a difficult problem that i know is going to be a lot of
7:41 pm
continuing work. >> was there anything you considered in terms of specific ?easures any silver bullet that could help you? >> we need to think about this from our perspective in the long-term. that is why we moved forward hearing there is not, in my estimation, any short-term measure we can do to solve the problem. i know there are businesses in the sector that are talking to the alberta government. we are watching carefully what is going on. ensuring we focus on how we can make sure the long-term we get to the right answer. coming up next, the renault alliance and the nissan board are said to be sprint -- split over carlos ghosn's
7:42 pm
continuing leadership. this is bloomberg. ♪ loomberg. ♪
7:43 pm
7:44 pm
asia. this is daybreak haidi: let's get more on the fate of carlos ghosn, the nissan chairman, whose fate will be determined thursday. stephen engle is at the headquarters. what are we expecting to take place? >> a fascinating story that is captivating both sides of the continent. in tokyo as well as paris. that is the fate of carlos ghosn. perhaps going to be decided later this afternoon. depending on how the factions go, he could be ousted as chairman. we heard renault is standing by him as chairman until they have
7:45 pm
more evidence. let's get some more perspective on this. turning it over to my guest. the deputy head of research. you do cover nissan quite closely. this was ang like palace coup. reading in the papers, nobody knows for sure. what we are reading, it is more and more sounding that way. we are hearing more about this criminal issue being connected to their ownership and shareholding. what the relationship between the two bank company should be. >> we are hearing from various media reports nissan is going to push for a change in the structure. hearing it isbeen
7:46 pm
inevitable and not feasible going forward. they did not want a merger. how do you see the structure playing out if indeed carlos ghosn is ousted? >> this is an interesting issue. renault, as the principal shareholder, has rights. they took enormous risk to buy this company in 1999. nissan can ask for this. their rights have to be respected. there are all of the public statements. a full we do not want takeover of nissan. we have to respect the corporate cultures of these companies. it is important to their competitiveness. he was a voice for moderation on this deal. with his absence, maybe people are going to take a harder line.
7:47 pm
say, we should control this company. renault sites wiped? have four ofor -- the five board members. in detention. >> every indication is they are in shock. many key people found out about this thing through the news. they didn't get a lot of notification about this. i think they are still in shock. you have a leadership vacuum. he has taken over as an interim ceo. arrested, it was not just nissan that lost its chairman. it is taking them a few days to regain their balance. , is athis rift
7:48 pm
repairable? very to be i think some trust has been destroyed. hard to regainbe that credibility. it is going to be a very tough road ahead. worrieshe things that me about this, we have long talked about a collaborative a merger of equals. you have an environment where concept of a, the global alliance were different people have different values that are respected, has had a stake driven through it. >> do we go back to a sigh load automaker? nissan being a domestic player? they have made this investment. they expect a return on their investment.
7:49 pm
is notenly nissan contributing, it calls into doubt the whole structure. is far as this investigation that nissan launched, we are , theyg the prosecutors are perhaps going to widen the investigation to nissan itself. aren't there are a lot of unforeseen consequences? of unintendedrisk consequences. once you invite the prosecutors into your office, they are not just going to focus on what he did. they're going to go shopping. theissan was involved in emissions scandal. there could be some problems. we don't want to speculate too much. >> there is always surprises. you could hear about people,
7:50 pm
other people have located. completely unrelated. any investigation, criminal investigation, can go into unanticipated directions. votes stack up? >> that is a foregone conclusion. >> he said too much power was put in one person. he is the ceo. i would assume he would become chairman and ceo. >> a certain irony. probably he will argue this is a temporary measure. there is a certain amount of irony. >> what is the future of nissan? main driver.
7:51 pm
can they get out of the alliance when the owner, the majority owner, is renault? >> this is property rights. have heard a lot about, nissan country beats the most profit. ultimately, that is not a determination of who owns the thing. renault, back in 1999, they endured a lot of ridicule. they took risks. have the right to gain from them. , if nissan management once to get out, it has to be with their agreement. drama, the ides of november. you still have an outperform rating.
7:52 pm
the company still has a 5% dividend yield. drama going on, this uncertainty, if there is a fight for control, maybe the share price goes up. >> thank you so much for your time. watch your back. the ides of november. the next shakespearean theme. ahead, millions of american shoppers are expected to open up their wallets this weekend in search of holiday sale bargains. the blackeak down friday stats next. this is bloomberg. is bloomberg.
7:53 pm
7:54 pm
shery: i am shery ahn in new york. new quick's get you a check of the latest business flash headlines. china eastern is buying a stake in another airline. money will be used to buy three planes from boeing as well as repay bank loans. it is part of the plan to expand at home and abroad and is in response to government call to boost the private sector.
7:55 pm
airbus is hiring staff to work on the new single aisle plane. it will be the first narrowbody airbus that will have been brought to the market since 1984. it is revamping the a350, which will use a new turbine and take a new name. olympus is facing new pressure after an in-house lawyer questioned financial practices. they say they have not improved practices since 2011 and things may be getting worse. happy thanksgiving neve campbell i am so excited. i'm not only talking about me getting a holiday.
7:56 pm
i can go shopping. have aexpecting to shopping extravaganza. shopping, 164 million people expected to shop through this weekend. black friday, 70% expected to shop. next twoion for the months. >> it is incredible. a lot of people are shopping ahead of giftgiving season. it is good to work off some of those calories you are going to get from thanksgiving dinner and all that turkey and dessert. is not just in the u.s., we have taken black friday and cyber monday sales in other parts of the world. in australia, one out of six people per dissipated in the black friday sales. shipping to australia but also local retailers. a lot of people coming out and
7:57 pm
retailers ramp up, cyber criminals ramp up. if you are going to be handing over your data, be careful you emailsking on legitimate and offers. >> my parents, who are in south america, bolivia, they have black friday and cyber monday as well. it is global. >> it is really global. we will wait to see if singles' day takes off globally as well. before we get over to bloomberg markets asia, let's see how markets are trading. -- seeing a bit of a modest upside. the china open is next. this is bloomberg.
7:58 pm
7:59 pm
8:00 pm
rishaad: this is "bloomberg markets: the china open." a modest rebound for energy and tech. >>. asian supplier plans -- apple's co asian supplier plans st cuts. rishaad: we are live in yokohama. ♪
8:01 pm
running into thanksgiving. volumes falling off a cliff. lots to digest. missing.ngapore david: 1% was the rate. the markets are pricing out. chances of two or three rate hikes. one rate hike for 2019. yvonne: the bond market was pretty much flat overnight as well. david: just imagine pricing on the probabilities. we are here is what thinking when it comes to the markets. relatively green this morning.
8:02 pm
taiwan, tech rebounds helping the sentiment in taipei. there is optimism on trade. navarro will not be .ttending the g20 summit -- the meeting between president trump and president xi at the g20 summit. pretty positive when it comes to the hang seng. this level started off as support earlier this year. now we are seeing it as resistance. about the trading
8:03 pm
halt, and regulators there. companies can alter shares for up to ten days. still holding onto the gains over night with the dollar weakening around trade optimist. optimism. apple woes coming through. allieviateying to concerns about the trade war. other apple suppliers mixed this morning. rishaad: let's bring in our asia tech reporter. she is on bloomberg
8:04 pm
intelligence. new jersey.t in debbie? debbie: deep cuts are being made in expenses. they faced a difficult year. the 2.9 billion in expenses they are planning to cut, 900 million will be coming from their iphone business unit. imacs and other hardware may be a bit weaker next year.
8:05 pm
dqavid: we know what they are planning. what does that cut mean for their biggest client? what does it say about demand for global hardware? in the memo, they said they are going to cut technical staff by 10 percent. they are also going to review of mid-tier managers getting paid more than 15,000. let's bring in our from new jersey. tell us about the view from
8:06 pm
there as to what is going on with apple? we started to hear hints at season. earnings several chip suppliers were not as strong as hoped. apple said they would no longer provide unit guidance volume. warning sings. if you follow other chip suppliers, they provided guidance. shows something else with this iphone demand. david: does this have to do with any specific iphone model?
8:07 pm
>> the guidance cuts showed more iphone 10, r related. but a wall street journal noted they were pulling back demand for the iphone 10s. rishaad: debbie, this affects everything in taiwan, doesn't it? debbie: right. onee coutns for 50% of manufacturer's revenue. -- by making a deep
8:08 pm
cut, it's fueling speculation for global demand next year. this might make headwinds. david: we are waiting for the monthly sales report. these trade spats between the u.s. and china have anything to do with this at all? there is some blame, from my understanding. what is happening with the chinese economy is pulling back some demand. you look toward the high
8:09 pm
end nature of the iphone, some of the premium bonds may be pulling back as well. david: wu-jin and debbie, thank you. rishaad: let's look at the first get a look at a city state whose economy is slightly sluggish. paul: singapore's economy grew at a slower pace during the third quarter. from the second quarter. asia's most trade reliant economies is seen easing next year.
8:10 pm
japan's long wait for inflation drags on. consumer prices rose just 1% in october. the boj governor told the diet confident downward price pressures will reseed. -- recede. admitted asking consulting firm definers to investigate george soros after he criticized the social network. sandberg says it was never facebook's intention to play into an anti-semitic narrative. is offering more transparency around political ads in europe following
8:11 pm
scrutiny. pays forure about who political ads has been a particular sore point. google will require advertisers to be verified before paying for political messages. global news on air, 24 hours a day and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am paul allen. this is bloomberg. rishaad: beijing is said to be eyeing a steel merger. more on this potential megadeal later this hour. david: up next, a possible paus e, slowing down a fed rate hike policy. conversation by sending messages qanand questios to our guests with tv . this is bloomberg. ♪ ♪
8:12 pm
8:13 pm
8:14 pm
david: let's have a look at the currency markets. the bloomberg dollar index is flat. investors are betting the fed may cause on this -- pquw3ause n this push to hike interest rates. the fed wants to hike interest rates three times next year. there could be a 70% chance of a rate hike next month. rishaad: the dollar index pretty much unchanged. let's look at all of these es the market is getting from the fed next week.
8:15 pm
joining us now is the global head of g10 f/x researh ach at this south china bank. there is a huge disconnect between what the market is anticipating and what the fed is indicating. this narrative can change. >> indeed. we were discussing forecasts. everyone has stayed in dependent. that is above potential. rate sos unemployment low, potential grwotowth will keep dropping.
8:16 pm
reads, thesome 2% fed is likely to pause. vid: io''m going to look at ten year breakevens, below 2%. should i be reading anything into this? why is that pushing lower? is one of the deep mysteries of mankind, why there -- reactions to spot oil the such reactions to spot oil. maybe the u.s. economy is slowing faster and tax reform is wearing off quicker. most of the drop is oil
8:17 pm
related. youaad: how would characterize the u.s. economy at the moment/ ? and ourselvesfed don't think there will be a major impact on potential growth. we have this bump from the tax bill. the big question from the market is debating how fast it comes off. it could be a gradual drop off. the fed could keep on hiking. if the unemployment rate is flat, this is likely to pause. there is a tail risk
8:18 pm
scenario. that is worrying some people in the market who think gdp could go down to 2 and not deviate. some are worried this will overshoot. that's the pessimistic side you are seeing reflected in equities. treasury hasu.s. been borrowing money like crazy. billion every day. that is not sustainable. crime tot is not a have an external deficit if you can offer the hope of paying. turkey did very well for 15 years, then hit a wall.
8:19 pm
came so lateimulus in the cycle for the u.s. that investors are reluctant to buy stimulus, see it as a long-term increase in the rate of return. the fed could pull back on quantitative easing or cut rates. the length of time they are going to get the high returns and dollar risk we see coming up could lead investors to be skeptical about investing in the u.s. and holding onto these buying dollars the way they normally would. david: steven, we have to leave it there. rishaad: plenty more on the
8:20 pm
and including - trials tribulations. we will be beware where an important meeting is taking place. this is bloomberg. ♪ berg. ♪ >> in a lot of ways, that vote
8:21 pm
8:22 pm
is similar. for the vote will be very interesting later today.
8:23 pm
there are factions within the board. those who are more renault, and then you have nissan executives voting later today. key ones are not being able to vote. they are both under investigation for financial misconduct. they handed that over to tokyo prosecutors. we are going to get a news conference later this month. informatione more on a locked of the speculation, the unsubstantiated reporting we are getting of local media. times, and there is smoke, there is fire -- when
8:24 pm
there is smoekke, there is fire. one newspaper is talking about emails that provide key evidence from executives, that struck plea bargains with prosecturos, utors, to indicate that carlos did order the uunderstatement -- understatement of earnings. could this be to set up a commitee -- committee? evidence ongreater corporate governance in japan.
8:25 pm
too much says had and there was not enough oversight to prevent it. there are reports from japanese hiroto couldys -- theceo and chairman man who says there is too much power at the top. david: we have to leave it there. minutes away from the open of markets. --nne: we are point t pointing to the green on the screen in china. we saw a pair of gains in the wall street session. =trade optimism,
8:26 pm
with headlines saying that peter navarro would not be taking part in the g20 summit. china futures are positive here today. it's a good idea to talk about some of these the down casino stocks -- beaten down casino stocks. is reiteringating the buy rating in the u.s., that there could be a conservative view of this outlook. we will see how shares trade in the hong kong session. and a rating's boost from moody's for this company. tencent is poisteed to rise abot
8:27 pm
2%. they are partnering with a blockchain e-sports platform to deliver 24 hour e-sports coverage. david: this is bloomberg. ♪ ♪ [ phone rings ] what?!
8:28 pm
ready for christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone.'re about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he.
8:29 pm
rishaad: this is the opposition leader in australia. been speaking at bloomberg's headquarters in sydney. this is the scene. he is favorite to become the ored prime minister -- fav to become the next prime minister. market wise, a bit of a
8:30 pm
reprieve. it is the run-up to thanksgiving. david: he is talking about investing in clean energy finance corporations. no market operations today from thie pboc. yvonne: we are seeing solid gains across the board. seng, up 167 points at the moment. asia was pretty resilient. u.s.dn't follow through on losses. we are extending those gains. large caps also up about a fifth of 1%. ofidend yields with some these large caps are pretty attractive, about 2.8%.
8:31 pm
this is the narrowest gap we have seseen in two years. the movers we are watching out for, let's look at some of these moves from earlier. a blockchain entertainment e-sports platform is being launched. this company that wants to do that is up 1.3%. ad one company is buying stake -- hoping to buy three boeing aircraft. we are seeing these shares down slightly. start a wants to boutique bank featuring
8:32 pm
blockchain. we heard reported cases of bird birdflu in a province affecting 9,000 of the birds there. we are seeing farm stocks rally. david: let's talk more markets. our guest is the cio and founder of aps asset management. the last time i spoke to you was david:in the summer. you advised to get into tech and
8:33 pm
chinese equities. this is cheaper now. what do you think? on the still bullish tech sector. i think it will be the main locomotive of the chinese economy. , bigl like cybersecurity data -- and so on. looking at a been downturn. tencent was still expensive back then. what about now? expensive.ill
8:34 pm
her growth drivers for te -- there are no growth drivers for tehe company. still haven't found any. companies will face that some -- same problem. tencent has instituted some reform. they are looking at the industrial itnernet and the future. that must impress you. early to tell.
8:35 pm
the new strategies will lean growth.espectable many companies are selling at high valuations. such growth may not be enough to satisfy investors. rishaad: you said your strategy year's to pick up good stocks with respective levels. how dean of these companies -- do you know these companies are of good value? thehe buying or selling in chinese market is oftentimes
8:36 pm
discriminate. will being indiscriminate in a bear market. stocks with strong fundamentals decline. we think the strategy for next year will be to buy stocks of companies with strong fundamentals. prospects will still be good. our look for 2019 is still murky. thatverarching issue faces the global equity markets is the core wlaall that seems to
8:37 pm
be launched by washington against china. issues extend beyond trade. they are complex. washington and beijing is still huge. beijing have no idea. we are fund managers. we have no idea what the outcome will be. the issues are so complex there will not be any agreement. tariffs could continue
8:38 pm
on remaining chinese imports. david: we have to leave it there for now. thanks for coming on the program. let's revisit all these themes. there is value to be had. a look: let's havea at the first word news. let's look at this vexed issue of britain leaving the e.u. brexit are working through plan.ght to finalize a
8:39 pm
theresa may warned voting against her draft deal could mean brexit is voted upon out right. >> if you look at the alternatives to having that deal with the european union, it uncertainty, or it could risk no brexit. bloc's economy chief says rome's "free rider" behavior threatens the euro area. the popular governments spending plan will only increase debt, he says. this is way too high.
8:40 pm
received no answers after raising doubts. why we see there is a serious deviation to the rules, bad for the eurozone and italy. paul: saudi arabian oil production to surged to a record 11 billion barrels a day. gain is due to a drawdown from domestic and overseas inventory. c is seeking a bigger challenge from producers of the next china's plan to judge each of
8:41 pm
people based on social behavior is moving a step closer to reality. it will assign personalized ratings from each resident. beijing's citizens will be rewarded raised on actions and reputations. global news on air, 24 hours a day and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am paul allen. this is bloomberg. rishaad: we have the latest from the nissan headquarters. this is bloomberg. ♪
8:42 pm
8:43 pm
yvonne: the most red story on
8:44 pm
the terminal, the fed is crying for a positive in 2019 -- pause in 2019. thanksgiving day parade includes a 56 foot tall goku from dragonball z. these stories trending online. thed: we will be learning fate of nissan's chairman later on after allegations he underreported how much hear -- earned. your take?at is
8:45 pm
nissan is not happy with --in grenault on the board having renault on the board all the time. this cost the existence of the alliance moving forward? jochen: carlos will be gone, but he still has the role of whichan of the alliance,
8:46 pm
in my opinion is more important. economies of scale come in. 50-50 between nissan and renault. deciding factor. if the nissan alliance would break down, that would be bad news, but more so for renault. they only make about 3.5 million cars. nissan only makes 5.5 million on its do -- own.
8:47 pm
whichever way happens would also be bad for nissan. it would be interesting, what the french government would do about it. rishaad: how much do you think those people who have bene critical of renault's that they've-- had a free ride? jochen: nissan has gotten wasthing out of renault
8:48 pm
well. they've gotten engineering knowledge about diesel engines. renault has helped nissan get more traction in europe. they have complimentary geographical footprint. think it would be one sided to say one or the other was a free rider. i don't think so. david: jochen, thank you.
8:49 pm
about twenty minutes into the session. what do we have? yvonne: taiwanese makers were up 1.8%. samsung up. morgan stanley analyst in warning we made the could be seeing a potential downturn in chip socks.
8:50 pm
he says some of these stocks have not fully priced in the weaker growth. we could see more dclines, even after the sharp ones we have seen fm -- for much of this year. earnings were pretty good for this company. profits surged. 84% from a year ago. transportation flows may not be enough to offset consumer weakness. david: lots more coming up. this is bloomberg. ♪ ♪
8:51 pm
8:52 pm
rishaad: let's have a look at chinese steelmakers.
8:53 pm
china is eyeing a megamerger. we have a 2.1% moved to the downside. -- move to the downside. on thiset's get more story. why are we thinking there could be a merger on the cards? this is something the chinese government has been trying to do for a long time. there are many small steelmakers in china and they want to bring them together. one company is looking at the top ten mills. half the world's
8:54 pm
steel, enormous. very significant, not only for what is happening inside china, but also for steel prices globally. rishaad: does this make industrial sense? i think so. the big drives- is to reduce pollution and mkae the steel sector more eficient. -- efficient.
8:55 pm
they are aiming to have a large producer. they could produce high-quality products and the less polluting. it is something the government is trying to do across the board. rishaad: this is something that may ruffle feathers. through what prism are they seeing this move? jame they will be slightly , to have a more powerful competitor. 2020.l be a big factor in let's have a look at
8:56 pm
the business flash headlines. this is a deal worth 450 billion u.s. dollars. it will be used to buy boeings, among other things. this is in response to the call to boost the private sector. memo saysn internal this company's iphone operations must lower expenses by 100 million. rishaad: amazon mistakenly shared customer data with unidentified third parties. it has written to a number of customers.
8:57 pm
eis no need to change passwords. joined by a hudge fund global investor later. rishaad: and a trade ahead of asia-pacific risk. ♪
8:58 pm
8:59 pm
9:00 pm
♪ david: when you were a young boy, did you say, i wanted to be chairman of the federal reserve board? alan: [laughter] david: you were called by many the maestro for being such a great maestro the economy? alan: i always got too much of the credit. david: you may your key decisions in the bathtub in the morning? alan: i was writing speeches in the bathtub. david: were you surprised at the criticism? alan: nobody forecast the 2008 crisis. david: do you see any movement to solve the deficit and debt problem? alan: i see a lot of talk. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪


info Stream Only

Uploaded by TV Archive on