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tv   Bloomberg Technology  Bloomberg  August 28, 2019 11:00pm-12:00am EDT

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this is bloomberg markets. >> we are coming to you live from bangkok. we will take a look to see if easing is impacting the demand for luxury product development. we will talk to a ceo about luxury real estate in china, becoming a top market for the company. the impact of the strong bond versus the yuan and if it is impacting chinese demand. to monetary policy in the united states. fed policymakers increasing the need for more rate cuts and san francisco's said president says
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she is keeping an open mind. we go to wellington for an rbnz conference. mary, thanks for joining us. will the fomc cut next month you -- next month? figures too early to that out but a meeting is in three or four weeks and i am actively considering all possibilities, thinking about the global economy, the domestic economy and numbers on inflation for the u.s. >> what is there in the data you see right now that would warrant an interest rate cut especially the domestic data you are receiving? >> right now, we see a domestic economy that is really solid. we have strong consumer spending, consumer confidence .umbers came out good, healthy
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the weakness we are seeing is in business investment. it is weighed down by global slowdown and the considerable uncertainty we face for many reasons. i'm looking carefully at this disinvestment, talking to business contact us, finding out their plans going forward and seeing if the economy needs additional stimulus to achieve our dual mandate goal, full employment and price stability. >> that is something which we have at the moment. ofare seeing little evidence needing to do that. the trade war changed the game. how much of that is impacting your mind as to what is going to happen to her three months from now? is that where the debate is centered? me, i look at it as, we have ongoing uncertainty. it has been over a year since trade discussions have emerged.
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strong wind blowing. wellington is windy. you are always getting a wind lowing on you from uncertainty and sometime it -- sometimes it gusts. i am paying attention to, are the winds picking up or are we getting periodic gusts? how are the winds investing -- affecting these investments? the other part i am looking at is inflation in the united states has been under running the 2% goal for over seven years thoughtful to be about achieving full employment and inflation mandate. >> this inflation is a global issue, is it not? does monetary policy still have any efficacy in dealing with it? i amis the big question, supposing. >> it does have efficacy still. if you look into the data, you can see as the economy has maintained a solid pace of growth above the trend, we have
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inflational uptick in and especially the cyclical components. when some of these idiosyncratic factors that temporarily push down inflation roll off, i expect inflation will move back to target. inflation has undershot for a long time. does it make sense to have that 2% target? .> absolutely we took on a 2% target after a long number of discussions largely because we need a buffer, a buffer from being too close to zero. we know what happens if you have disinflation. also, we need policy space. our nominal interest rate is a real rate of interest, which is slower and lower than it was in the past. plus, inflation. onry tenth or two we lose inflation, we lose on policy
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space should the next downturn arrived. >> you talked about how it is too early to decide if a rate cut is necessary at this point. your former colleague said perhaps it could be inessential and additional stimulus could be , could do more harm than good. your response to that? to comment onng that. i know that is the topic of the day but i won't comment on that. how i am thinking, when i look out into the future, i see challenges that we are facing globally and domestically. the domestic economy in the u.s. is very solid but we have these headwinds blowing against us, and part of that is uncertainty, part of it is slower global growth. we have to factor in how the headwinds will affect our ability to achieve price stability and full employment. i'm looking at all the factors and seeing how they will weigh
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on the u.s. economy, then considering my decision as to how to offset any of those headwinds so we can attain sustainable growth. >> the question is whether the fed should be mitigating the headwinds we are talking about. >> i'm going to talk about my views on what the fed is meant to do. goals, price stability on full employment, and we consider those for the american people absent any considerations. when i go over the threshold of the fomc room, all i think about is the american people and the congressionally mandated goals. i take those decisions seriously. view, are the fed's tools enough to mitigate the headwinds? uswe have tools that allow
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to sustain the expansion. we have shown that, and we have tools that we can deliver to continue to achieve the goals we have been given. so i believe we have the tools to do our job. >> president trump increasingly voicing his opinions. how should the fed take politics into account when making a decision on whether to raise rates are not? -- or not? >> i will tell you how i approach my job as a policymaker. i don't consider political issues. i consider only the congressionally mandated goals we have been given. when i approach my job, those are the things i think about and i'm looking at the data, the models, the evidence, talking to businesses and leaders and my colleagues. i'm coming to conferences, like this when in new zealand, and putting that information together to undertake the best decision for the american
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people. political considerations never enter in. course me something, of we may need signs of stimulus in the future, maybe as soon as next month. how much of that do you think shouldn't come from monetary policy but from the fiscal side? >> if you think more broadly than just today, if you think about the future we face over the next decade, we are going to have to put many of our best tools to work to ensure we can continue to sustain economic growth event that we are very close to the zero lower bound in most countries. that is closer that it has been historically. have persistently weak inflation and slower growth because of demographic changes and slower productivity growth. those things call for us to align our resources and row in the same direction to ensure we can continue a sustained
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expansion not only domestically in the u.s. but globally. >> you just made a speech in wellington talking about the new parameters of central banking. tell us about that. the new deep parameters, as i call them, in economics we like to call things deep parameters, they are the fundamental things we rely on. the new deep parameters is growth in the u.s., to use the u.s. as an example. we used to think a bit as three point 5% for potential growth, now it is 2%, a little less than 2%. we used to think the neutral rate of interest was 3.5%, now it is a .5% by the latest summary of economics projections at the fomc. these things are fundamentally different and call for us to be thoughtful about our framework and tools that we have used and whether they are the right ones going forward.
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>> i want to touch on the dollar strength. like a hawk.ng it what do you make of the strength of the dollar? is it causing a problem for not just the u.s. economy but the global economy? fluctuates, as we know, based on economic conditions in countries, relative economic strength. that is an outcome of the fact that the economies are differently, they are playing out differently, they have different strengths. we don't make policy for the dollar. that is not my role. when you think about why currencies fluctuate with each other, it is because of the strength of the relative economic outlooks. >> are you comfortable with where the dollar is right now? comments on dollar policies. the fed doesn't make dollar policy, that is the treasury's decision.
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>> president trump has come out and said he wants a weaker dollar and perhaps that could be dollar intervention, perhaps soon. what are the implications of dollar intervention? dollar and about other financial conditions, all of these are, from my perspective, part of the financial conditions we assess and we make decisions about those financial conditions and how they play out in the economy, just like we look at the real economy and inflation and other variables. for me, those are inputs to a decision, not outputs. >> i want to get to the mandate again, inflation and full and plymouth. -- full employment. if the normal trade up, like the do, if iturve used to has weakened or broken down in terms of the correlation, how do achieved yourave
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full employment mandate, and where does that leave the neutral rate for the cost of borrowing? >> let's talk about full employment. if you think the normal tension, and it is clear it has, between unemployment and inflation has weakened, the file getting full employment -- then finding full employment is more challenging than in the past. one way that i do it is i talked to business leaders and people who own businesses and hire workers. i look at the data in combination with that to see where full employment is. the way i think about it is, full employment, we is to think it was a cement wall we couldn't break through because something negative would happen. we are finding it is a little more flexible than we thought. when you bring in additional workers and help people scale up and move up in the economies they are a part of. in terms of the neutral rate of interest, those are different
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concepts. the neutral rate of interest is determined by population, savings, investment demand and productivity growth and aging population. and where we are now, roughly in line with the neutral rate of interest. >> what pressures has this put , and whatasury market intern do you look at, what you take from that? time is clear we are in a in the united states where the yield curve has flattened and inverted with some frequency. this is something we pay careful attention to. -- a variety of factors are affecting this. one possibility that is likely is that the long run views on
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growth are coming into clarity among market participants. it will be slower, these new parameters are really becoming part of what people talk about. another thing happening is that the inflation risk premium is falling. rates are coming down in many countries. they have been low for a long time in the u.s., below target. that will reduce the inflation premiums. the risk premium is falling, the risk you are willing to take on, the term premium. safety, this flight to to a rate of return and you see that affecting the yield curve in the united states and affecting financial markets more generally. which one of those on any particular day is the most important is not easy to tell, but i do believe all of those are affecting the financial markets in general. marry, -- mary, secretary
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mnuchin said the u.s. is considering ultralong bonds. your thoughts on that? this has been considered many times before but has been put to for techt is not great space. the understanding, what is your take? what is your take him a fed rethinking ultra-long bonds? they ares a decision considering and i believe it to them to look at the avenue -- the academic papers and think about the impact. you asked a question earlier about, what are the fiscal sides what are the-- fiscal sides doing? people are thinking about, how do we deal with the new world we have? >> the issue really is funding at low costs.
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what are the dangers of that? what are the risks that you see? take on debt, you always have to consider how you will pay it and how you will pay inback and what will change the future. now, the fundamental issues we are facing across the globe in the u.s. is how do we ensure that the economy continues to grow, and how do we in the u.s., how do we make fundamental investment in our infrastructure and our human capital so we can continue to grow and expand in the future? about that fed rate hike that we had in december? was that a mistake? do you think the fed was too long?h for too >> i supported the rate hike in december. the reason was this. if you look at the data coming in up until that time, the
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economy was projected to grow above trend in 2019 and 2020. inflation was moving back up to target, the labor market was, looked extremely tight. we were below the neutral rate of interest. we had those conditions. subsequent to that increase, was,rate hike, what we saw the mood and the data were becoming more pessimistic, if you will, more, data was the mood morer, pessimistic. that is because of the headwind. it intensified. it wasn't just a gust that went away, the wind got stronger. it blew against us. these types of things, the froml slamming, headwinds uncertainty, those things weigh on the economy. the neutral rate of interest keeps coming down. supported the
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basis cut, to put the economy in a good position. before.to where it was tell me something, mary, this is --uestion from my college colleague david. if the ecb decides to reenter quantitative easing, what do you take away from that? what is your reaction? >> all central banks are responding to the fact that they have economic conditions that are changing. in europe, in the eu, economic conditions have slowed quite a bit. inflation is under the target. that requires central banks to take action. they are doing that. in the united states we look at the economy, we see how global factors affect us and we have to take our interest rate decision based on what we seek to the domestic economy.
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-- see for the domestic economy. >> there is a sense of, banks are being held hostage why the markets. the more central banks do, the more of -- the more banks want. are you comfortable with this? move day-to-day. they fluctuate and are finding their own footing. some of that is based on the outlook for the economy and some of it is based on what is coming next from central banks. i take market information, financial conditions more generally, as input. financial conditions being tighter or softer or easier would influence how stimulated, how well supported growth is. i think that is an input but it is not a determining factor. >> central banks around the world could be running on empty
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soon. we have the rbnz cutting 50. are you concerned? >> not at the moment. closer countries we are to the end of policy space than we would like or i would like. in the u.s., we have policy space available. we have the rate high enough that we have additional stimulus we would bring to bear. one of the lessons from the global financial crisis was that we have tools we can bring to bear to solve problems when problems appear thomas so i am not, i am confident we can continue to deploy those tools and we can provide the stimulus necessary to achieve our dual mandate goals. >> final question, what do you worry about the most out there? >> i worry about the mood getting ahead of the data.
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if you look at the data, you see in the u.s., and in other countries, new zealand as an example, in the u.s., let me speak to that, you see the data coming in pretty solidly here it consumers are confident, consumer spending is solid. slowing,investing is weighed down by uncertainty, but it is not negative. we still have growth. so i worry that, against that good data, the mood of uncertainty, concerns about the future, i hear many times that in the u.s. we have expansion for 10 years. doesn't it run out of gas at some point? all of these moods will get ahead of the data and it could be a self fulfilling prophecy that makes it harder for us to sustain the expansion and achieve goals. >> mary daly, thanks for your time and insight.
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let's at some perspective from our conversation and reaction to that interview on global policy. we have david in hong kong. reason,ke the voice of no need to panic. >> no need to panic. the last thing she said about, worry that the mood that could is ahead of the data important. i think a lot of the movement we see in the bond market, we see yields falling, yield curves inverted, some say the market is screaming that the fed needs to cut rates but a lot of people are contrasting that to the fact that wait a minute, the data are still reasonably strong. we recalibrated, that is how we described -- she described the move in july. one of my favorite things, i love metaphors. she said wellington is a windy city. by theertainty caused
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trade war comes in gusts and sometimes it seems to blow a steady wind. it is difficult to gauge what that means. consumer spending has been strong. business investment has been weak. lots of people say that is because of the trade war, not knowing what will happen next. in some ways, she holds her cards close -- cards close to the best -- close to the vest. we have important data, a jobs report, the next pmi data from the institute, these will be key signals. >> david, what was your take away? >> it is interesting how careful she was in phrasing her answers. with the topic of today, does the fed metal and politics -- meddle in politics? i think what was key was when
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you asked about the dual mandate and haslinda asked about central banks across the world doing something because there is something happening in their economies. i am sitting in my house, my neighbor is wrecking his house. the neighbor beside him is doing the same counterproductive thing to his property. the value of my lot goes down. on your bloomberg, the dollar against major currencies this year, it has gained against the yen, risk aversion and alluding to monetary policy. inside, the trade war is affecting other economies more than it is affecting the u.s. at the current moment. if the strong dollar is theuencing another part of dual mandate, which is price
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stability, and the strong dollar is depressing prices, that might be an interesting conversation to have moving forward on what the fed does about dollar strength. politics aside. why so cautious on the dollar? the dollar makes a difference. traditionally, the federal reserve has two things they maintain a position on. number one, that is our decision, the treasury department's decision when it comes to intervention. the other thing, traditionally they focus on the domestic economy, not the level of the dollar. there is no doubt even coming out of jackson hole and the panels and papers, more people in central banking are saying can you ignore that? can you ignore the impact of a strong dollar on emerging markets? certainly on the strength of the u.s., and i think it is interesting what david said about inflation.
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it is also growth. manufacturing is being pounded why the trade war. -- by the trade war. purchasing indices are falling. doesn't the fed have to big knowledge and deal with the fact that it is an obstacle to growth? maybe they will look at cutting the key interest rate again. >> kathleen, great to get your insight. david, great to get yours as well. go to shanghai. this is the world artificial intelligence conference. jack ma and elon musk talking to each other, it started off with, somebody was remarking, elon musk pontificating on the difference between humans and chimps, saying ai will be smarter than humans. we have broad rhetorical questions. jack ma is talking, the boss of
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alibaba. that is the ai conferencing shanghai. -- conference in shanghai. you can go to the bloomberg. ♪ from the couldn't be prouders
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>> we have to factor in how the headwinds are going to affect to achieve full employment and price stability. i am seeing all those factors and how they will weigh on the u.s. economy, and considering my decision is how to offset any of those to attain sustainable growth. francisco fed president mary daly giving her thoughts on the central banks next moves. let's look at the markets. moment, half of 1%, pretty much where it was. generally weaker across the board. s&p futures as well. that is also playing out with regard to what's going on.
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it is the usual suspects here. the trade war with steven mnuchin saying china and the u.s. will be talking. did not say when. he also brought out the controversial subject that does come up now and again, that is that he is in favor of having a long bond, 50 years or even 100 years. are just under 15 minutes to go before the indian session gets underway. let's have a look at the prospects. we had a rally this week. 1%ding about half of yesterday. could be seeing downward pressure. indian rupee also seeing this global dollar strength story thing. 1/5 of 1%. 10 year yield creeping up a little bit, 6.57%.
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we saw a bond rally resume after having a short interim. let's move to new york with first word news with su keenan. reporter: we are going to start with india, stepping up plans for jammu and kashmir with a mass recruitment drive. the announcement came just hours challengings top the constitutionality of narendra modi scrapping the autonomy. . and he also signaled further easing of the areas communication restrictions. media reports in hong kong meanwhile say police have and a pro-democracy rally which was planned for saturday. they say it is over safety concerns after violence at last weekend's rallies. the human civil rights front says it remains a basic right in
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hong kong for people to march. cathay pacific was the target wednesday, demanding the rehiring of workers firing -- fired for supporting calls for democracy. that being terminated, they asked me to leave, i couldn't help my colleagues .gain i'm confident that i will just change my role. i will still continue to help everyone. i will tell the truth. reporter: and to argentina, the country is again banking on the imf to stave off default. the fund in buenos aires deciding on a new package of more than $5 billion, adding to the record bailout last year. plummeteds reserves more than $10 billion in the past month as policymakers try to shore up the pace of a
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stunning political defeat for the market friendly government. global news 24 hours a day on twitter,t tictoc on powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haslinda: thank you. chinese buyers have historically made up the bulk of property sales in thailand, but the mainland has raised concerns about future investments in real estate. one of the top state developers is stepping up a push for overseas buyers planning to launch more in 2019. let's bring in the ceo joining us this morning. us. to have you with what kind of impact can be seen from the slow down not just in thailand but pretty much the rest? , we slow downows
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and the launching. you said we launched 16 projects, 10 of them are housing projects with non-foreign buyers. only six will be foreign buyers. which are the condominiums. out of that, we expect only about may be 20%. actually, the number is not very significant for us in terms of the companywide, but of course, a slowdown of economy as a whole has a certain impact. haslinda: 20% slow down for now. given that the slowdown is expected and that could even be a global recession, what is the projection for the next two to three years? >> if you think about it, thailand is in a frequent position. we are not at war with anybody. actually a small country, people are looking at it as a good country for investment, a
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hub for industrial productions, and some people will be moving here to curb the impact further business, whether it is even for living. if you bring in production, you must invest in the residential for the worker also. 20%inda: so you are saying slow down even next year? >> of course there will be a slowdown. haslinda: 30%? 40%? >> you can't really say that. you have to depend on the product itself, the category. we have to sell to the thai. it is a small amount that will be impacting us.
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but of course, it will impact. i'm not saying it is not. take a look at it this way. as a foreign buyer, maybe it's a good time to buy. the last five years, the high property markets have gone up. people would buy five years ago and make a lot of money. that, lots of money on currency appreciation, almost 10%. actually, they make 10%, plus 20%. they made a lot of money already. of course with risk appetite comes with a return. haslinda: you talk about how 50% will be local buyers, but the foreign buyers, most of whom are chinese, we have a slowdown in how closely are you looking at the yuan? >> you think about it, 50% can be settled -- sold to the
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foreign buyer, but we never sell 50%. half, or even less than that to foreign buyers. half of that 50% is 25%, and half of that, maybe 30% of that is chinese. haslinda: but are the trainees buying the way they used to? -- are the chinese buying the way that used to? is there an impact? >> of course. everyone has to be more cautious with their money. when you see a slowdown, everyone has a cautious attitude to investment, especially large purchase items, including the chinese. of course, like i said, in a way when thailand as a country, they are looking to investment, it is that has to come into play also.
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in thailand, whether it is infrastructure, eec, or whatever project we are doing, they still have to buy rigid eventual -- residential for the workers. in a way, we still benefit because the government has a long-term plan in doing infrastructure projects. maybe we are lucky, but -- haslinda: would it make more sense for you to be looking outside thailand? in the u.s. markets for instance, is that becoming a more incoming market for you? >> actually, we increased our stake in the standard hotel management company. right now, we have six hotels we are managing in the u.s. we just opened one in london that is very successful and i hope you can come visit us.
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haslinda: [laughter] >> we are going to open one in november. right now there is a team going over there to do a lot of things. we are projecting we will have 25 more open, paris, lisbon, to name a few. many of them in europe and a lot in asia. we think the engine will be in asia. in a way, we are poised to do around asiaent still. haslinda: can you quantify the kind of investment that is likely -- management, we are a company. we are like marriott. we call it standard. we have a little more different approach.
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haslinda: which markets will drive growth going forward? >> i think young and up and coming, people who crave the lifestyle, the different kind of lifestyle. haslinda: what is the biggest concern for you right now? we have potentially a recession coming up. we have sentiment being impacted. people pulling money out as well. what is the biggest worry for you? >> in a way, i am a half-full kind of person. i see this as an opportunity to wait for theng, to comeback of the economy. when the economy goes down, the more money you can make in the long run. of course you can say tomorrow, i'm going to lose money. that's not the point. the point is you have to look forward and see the projection on what's going to happen in the future, if it is coming back.
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when the economy is better. but right now, how cheap can i get it, how i can get the service, and how much less i can pay right now. less cost. the economy is down. everyone is worried. the ceo of sansiri luxury property developer in here in bangkok. rishaad: thank you very much indeed, haslinda amin with the theiri ceo, saying that weaker yuan is not impacting chinese interest. the only person making headlines at the moment, elon musk and jack ma on the stage at the moment. the tesla boss commenting on the gige factory being seen in --
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building in shanghai, saying there's nothing else like it, that the team in china is doing an amazing job, and also going on to say he has been astonished about this and at the end of the day, it shows what you can do in china, how much progress you can make in china as well. ast is what elon musk says jack ma is trying to bring the conversation back to earth, saying that he was in favor of the earth, which is a bit of a bizarre statement. he was talking about himself being very pro-earth. there you have it. turn to your bloomberg terminal if you want to get more on this and get more about this from bloomberg editors on that. ♪
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in mumbai at the moment, temperature of 28 celsius. a bit of a cloudy day. looking at equity markets just about to get going. barelypercent fall after settled gains this week. is the open looking like here? how are martin -- markets reacting to the government enacting those rules in several industry groups? >> that's right. a lot of announcement actually coming by in the last four to five sessions to boost or stimulate the economy, which has been witnessing a slowdown. that is what we saw in the last gdp numbers. gains yesterday are the opening rates now. cutting about 40 points this morning. also trading with 30 points.
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more, thembled monthly contract to be expiring today. we are expecting a volatile session as well. for the broader markets, that has opened at a weak note. the index is reading with drops about 30 points. selling coming about yesterday. once again, the focus is shifting to the currency market. rupeedian ruby -- indian has crossed the handle of 72 to the dollar. lookingtraders will be out for the rupee trade as well. announcing changes. who is in, who is out? time to reenter nifty.
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its entry backng and the changes are with effect from september 27, and the stock that comes out is coming out is over 40% for this calendar year. nestle is up about 2.5% after the final news came in. the stock is trading around all-time high levels seeing gains of nearly 15% this year. reacting, down about 7% in trade. both stocks reacting to the news of the changes. rishaad: thank you. those bit more on changes. let's get more flesh on them. loads of companies such as apple to source 30% of production locally. they are being relaxed. are the big winners hear
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from these changes? a very interesting announcement came out yesterday from the cabinet. we have seen the modi government reducing the restrictions gradually over time. yesterday, there was an announcement around that would help particularly the coal industry, retailers, and manufacturing, and digital media. cole, for example, this will help companies like dhp to invest in coal mining. on the retailing side, particularly the restriction, the easing of the restriction on the local sourcing, will help companies like apple. it is planning to start manufacturing of iphones in india.
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also announced yesterday, a move beforew online retailing a brick-and-mortar operation is set up in the country, so this will allow apple to sell iphones , if it doesn't have retailing options yet in the country. apple is already saying it is planning to start online sales in india. i think the big winners are going to be those companies. i think the overall manufacturing industry, we are waiting to see how this will play out. we have a trade war that's going on. we will see several countries some of those global supply chains moving out of china, we will see some of these countries trying to get manufacturing bases in their own
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countries, and india is trying to do this here. haslinda: the question is, why now? what prompted the change? reporter: this modi government has been sort of campaigning on trying to make it easier for businesses to operate in the country. we have seen a number of movements over the last few years. india's ranking on the world banks has steadily improved. this i think is another step in that process. india program is a flagship modi policy. to boost the manufacturing industry to make it a bigger contributor to the overall economy to create more jobs for the millions of people there.
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i think that as mentioned, the trade war has some impact on this whole move at the moment. --theast asia has been benefited from the trade war change and i think you will see india benefit as well. southeast asia economy editor, nazarene -- seria, thank you. coming up, the debate on the no deal divorce for brexit. this is bloomberg. ♪
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>> there will be ample time on both sides of that crucial october the 17th summit, ample time in parliament, for mp's to
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debate, the eu to debate brexit, and all the other issues. >> when parliament does meet on his timetable very briefly next week, the first thing we will do is attempt legislation to prevent what he's doing. secondly, we will challenge him on confidence at some point. u.k. prime minister boris johnson's latest move on brexit sets up a showdown with lawmakers and has triggered a criticism. he's planning to stifle the no deal debate by suspending parliament for five weeks next month. bloombergg in our anchor. you are at the epicenter of all this in london. suspending parliament is certainly a dramatic move, one that is being questioned constitutionally. thisus an idea of how alters the landscape for the deadline. reporter: the first thing is that it is not going to alter the landscaping terms of the actual deadline itself, halloween.
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boris johnson said do or die, that is the date that britain will leave the eu. what it does alter is the landscape going up to that because there is less time. about four days less parliamentary time to talk about this. it is being seen as highly significant because they see a moment when a lot of mp's want to have their say. this is a crucial time going up to what could be, and what many people expect to be, a no deal brexit. many people feel that would be a bit of a disaster economically apart from anything else. the crucial point now is when parliament comes back on september 3, they then only have until september 12 to talk about anything or indeed to do anything. what they do want to do, at least many of them, is to find a way of changing that timetable. the queen has given her permission, which she has to do technically, to form a suspension of parliament. there is actually very little it seems they can do.
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even if they could do anything, could they unite enough to be able to do it? roger, a key player in this will be the speaker. what does he think of johnson's plan and what could he do to upend it? reporter: the interesting thing is that normally as the speaker of the house of commons, he doesn't take a political line. but he says this is a constitutional outrage. he said that very quickly straight after the news came out yesterday. this suggests he is prepared to take action. the action he can take will be parliamentary time. the parliamentary timetable is normally pretty strict, but he can change that. he can make time for the mp's to do something, perhaps a vote of no-confidence in boris johnson, perhaps allowing legislation laws to go through and change all this. need is theually people who want to do this getting their act together to do
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this. . frankly, from what we have seen, there is very little unity, even in what they want to come together to achieve it. onhaad: a quick word here u.k. plc stunts on this deadline thisusiness reaction to quite stunning move by the prime minister. -- people ithink have been talking to in the last few weeks are saying what we need is a certainty. what businesses hate is uncertainty. they like a no deal brexit, but they don't like dealing with whatever comes up. makesay this does certainty going out on october meansater, some say it the likelihood of a no deal is greater or the truth is there has been very little preparation. they prepared last time for when we were supposed to leave the eu at the beginning of the year. that didn't happen. many of them feel they don't want to take further move now. rishaad: thank you so much for
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that, bloomberg radio anchor roger hearing in london. that is it for "bloomberg markets." eastmberg daybreak: middle " is coming your way next. that is london. ♪
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>> the following is a paid program. >> the following is a paid presentation brought to you by are collectibles tv. the california gold rush is considered to be one of the most impactful events to affect america's young economy in its first 100 years and it has certainly had a long-lasting impression in numismatic history as well. the people of california needed a way to standardize the value

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