david: almost 11:00 and hong kong. welcome to bloomberg markets: asia. let's get to the top stories. chinese currency sliding to the weakest level. this is the onshore rate to be specific. lowest since november. policymakers allowing the currency to depreciate against this resilient u.s. dollar, against that backdrop in the currency market stocks are coming under pressure trading weaker as the markets assess the selloff we see in the bond markets, stronger-than-expected many u.s. consumer confidence in hawker's remarks out of neel kashkari on the fed here, adding to these receding expectations for rate reductions, plus, aluminium recycler files for an ipo and plans to raise around $900 million. we speak to the md of the parent company about that specific fund raising plan. welcome to the show and we are

heading into the latter part of the morning session in most parts of the region. of course we have indian markets coming online this hour, just give us a flavor of what the direction is looking like a head of that open in india, avril hong is with us at of singapore, just give us a check of how these markets are doing at this point. avril: i think it's negative pole stay. india stocks look to be opening on the back. it was a wall street session, don't forget, that was dominated by the selling in u.s. treasuries that yield on the 10 year really hitting that 4.5 five level losing for the ground and the asian session. then we got the australia cpi print which kind of reminded everyone about how hard this last inflation fight is going to be. we are really seeing those bonds in australia getting hit. asx 200, decline in even further, this is on the day

where markets are also picking up on their property easing, spreading to get more in top tier cities in china. you are seeing those material stocks along with industrials helping the csi 300, but the hang seng is in line with what we see across the asia-pacific. selling in u.s. treasuries overnight came on the back of soft u.s. auction, also against the backdrop of hawkish fed speak. we are keeping an eye on currencies as well. let's flip the board and take a closer look as you just touched on. we saw a onshore u.n. hitting levels we haven't seen since november against the greenback. this is after the pboc fix, levels we haven't seen in four months. and that really shows the pboc is allowing potentially their currency to weaken. we are also keeping an eye on some of the other crosses. the aussie now is losing some ground against the greenback. we saw bit of a jump earlier.

still gaining ground against the yen, and this is against the backdrop of the expectations of what the boj is going to do. i think the levels here, something we haven't seen since 2013. of course keeping an versus yen as well. this is against the backdrop of their policy path. there was expectations what are central banks going to do. and of course the fed expectation. that is the big one we are watching. on that note, we heard from that know the hawk, neel kashkari. he was true to form. take a listen. neil: i have been asked many times who'd we take potential interest rate increases off the table. i don't think anybody has formally taken them off the table, even me. i say that we could sit here for as long as necessary until we get convinced that inflation is sustainably going back down to our 2% target. i'm not ruling out potential increases. but sitting where we are for an

extended time is a more likely outcome. but if we get surprised by the data, we will do what we need to do. quick sounding hawkish from the fed official neel kashkari. david: to your point, true to form. we will get to developing news in a moment. just on talks of this fed pricing conversation. i'm actually looking at my screens. all across whether you are looking at swaps or all the way to 2025, 2024 this year, there is a 0% probability of cash to rate hike. i'm not saying we should we expecting base case rate hikes, but to zero. developing news this time last hour out of south korea, the labor union at samsung says it will go on strike for the first time in the company's history. sam joins us to get us up to

speed on the story. what do we know so far? quick so far, it seems this union is one of several labor unions that samsung has, but the problem with that is that this union claims the biggest membership about a quarter of the entire workforce of samsung. and that obviously include some of the people that work in the chip division, which is the most important. it doesn't not look like these workers are so serious that they would put things on hold in terms of production of semiconductors. i think this is something that needs to be taken seriously given the market reaction especially with the samsung shares dipping 1% after this union announced that it would go on a strike. what we are seeing from this union, and i was just reading on the statement that they released before i was coming here to tv was that they were not happy with the people that were put

into the negotiations for the wage hikes. they think that their own members were not taking part in the negotiations, and they are also in happy with the way their wage increase was agreed on. whereas companies like sk hynix, the other rival chipmaker was using the operating profit as a way of sort of detecting the wage hike. samsung was using a different standard deducting a lot of tactics from the operating profit. there's a whole accounting issues that they are bringing issue with. so, this is something that is developing and we will need to look at the details going forward. david: i was about to say, it has been a while but it really hasn't been a while because it's the first time. if we are learning about this now for the first time, could you give us some background on labor unions and wage talks in south korea? we haven't seen a lot of news on

this of late. sam: yes, sure. this is kind of a symbolic issue given that samsung has been almost notorious for having crackdowns on labor unions for a very long time. the chairman that was the father of the current person running samsung, who died in recent years, was someone that made sure that there would be no labor union at all at samsung. he made it very specific that people never, ever want to see any type of organized labor activities. after he died, things changed. under his son, samsung started to allow labor unions to form and this is one of the things that have happened since then. so there is more of a voice from the labor side going forward at samsung. it's sort of adds a wrinkle to

the way the company runs and how the operations are shaped. and we are seeing just a lot more of it now with the labor union. labor laws in korea tend to side with the labor side. so it will be interesting to see how this folds into the question of how samsung is run. david: thank you so much for getting us up to speed and also the background. sam insole for us. let's bring in annabel who's in singapore for us. we almost forgot you, our copilot, as we were approaching the runway about to take off. but let me bring you into help steer the ship. annabelle: thanks for finding me several minutes into the program today. we were talking about markets and we heard from kashkari. but it's worth pointing out when it comes to kashkari is the most notable hawk on the fomc. perhaps those comments around rate cuts are rate hikes are on

the table. still, it's the broader flavor we have seen come across markets that impact higher for longer fed policies. let's get more on that and bring in the head of emerging-market economics citigroup global markets who joins us today from singapore, at the sidelines of the city macro pan asia investment conflicts. there's a lot of different ways to slice and dice the impact of the fed saying higher for longer but what are the ways you are looking at it? quick sitting here in asia, the higher for longer fed is pretty much top of mine in a lot of investors and it's particularly challenging for asia because most central banks in asia, outside of a few like indonesia, asia and philippines, everyone's policy rates are lower than the fed. if you have boj in the negative rate differential by the fed. as market continues to reprice where they think fed action will be in terms of cutting less, than there's a huge debate about whether the terminal fed funds rate is going to be. we just had larry summers in our

conference talking about the most likely, if you impair -- compare fomc rate cuts of 2.6, he think it will most likely be 4.6. that kind of tells you that the risk of the runway for fed easing is a lot more limited in that then raises questions of how that's going to influence the trajectory of monetary policy across asia. i think that is really a big concern. you can make an argument across asia. we don't have the same inflation dynamics rbc in the west. we don't have -- obviously we still have some growth challenges, especially with happening in china and the spills -- spillovers of that in the region. to what extent is central-bank policy going to be influenced or constrained by a higher for longer fed? i think that's been the big factor in to the extent that constraint, sometimes the differential of where the terminal rates will look like is manifesting itself in pressures on effects. pressure of currency weakness relative to the dollar, protracted strong dollar will be a challenge for parts of the

region. annabelle: which parts of the region in particular, inflation is coming to target for a lot of countries in this part of the world, but they are still so constrained by which the fed does. which areas and countries are most at risk in this environment? >> in asia -- with the exception across the mainstream economies in asia, i think indonesia or bank indonesia is showing signs of particular explicit constrained in fed policy that they even hiked rates recently. even though there's not much corn inflationary pressures. that's an explicit reaction or insurance hike on the back of the fed policy. across asia, indonesia has a little bit of vulnerability to the extent that the current account dynamics are deteriorating versus the rest of asia, which most of them are net external creditors who don't have a lot of net external debt position that creates risk of fx pressure leading to financial stability constraints. indonesia has more constraint even though their policy is about the fed. sensitive to fx volatility

because they are still net external debtors. this rate differential puts pressure on capital outflow is the current account is deteriorating and we don't get flow. indonesia is on the one extreme. obviously you can look across asia who has a caution relative to the fed that don't have the same balance sheet vulnerabilities. you could say india, philippines where policy rate is above the fed. they are at six point 5%, both of them. perceivable he they have space to conduct independent monetary policy, even though higher for longer policy is there. the question is in india's case, they don't need to do anything at this juncture because growth is fine. even in india there might be a reassessment of where neutral rates will be or where rbi perceives neutral rates will be. on bloomberg a week and a half ago we threw a trial explicitly talking about it's ability to ease monetary policy based on their own domestic financial

conditions and you have seen an impact on it. so maybe there will be some room there, but obviously it's being tested because there's an impact on fx, but you can make an argument that central bank is not a sensitive anymore to exchange rates on inflation that it was a couple of years ago. but in asia you have low yield or's. policies below the fed. even though you can make an argument countries like china, movie thailand, even korea, arguably, given that inflation is at the target or below the target where korea will approach the target fairly soon, they should be a little bit more comfortable about having more independent monetary policy relative to the fed and focus more on their domestic conditions. therefore, they could be for cutting and we think china could cut, thailand could cut and they are not delivering. in the case of korea, even though conditions suggest they could cut, i think this whole dollar environment in the volatility of fx will constrain policies of what be ok will do. we still see room for cutting

but part of that his condition is sitting as a house, we are probably the only few expecting the fed could cut as early as july. but i certainly think that gets pushed back given some of the hawkish we are getting out of the fed and the mixed data we will get out of the u.s., that complicates easing outlooks at a time for a number of central banks in asia. david: when our producers mentioned that you were going to join the show, that was immediately we came to mind. for cuts from july. what i didn't hear you mention as far as economies was taiwan and malaysia. is there a specific reason those were left out? are they in different part of the spectrum? >> in the case of malaysia, malaysia stands out in asia where this whole global rate hiking cycle after the pandemic and post-pandemic on the war, malaysia hiked rates a lot, when you think about inflation, although now it's low, part of

the reason inflation is low and malaysia is a lot of administered prices. the expectation is they will go through subsidy reforms to meet fiscal targets and that will come this year with 195 fuel prices, you have inflation heading higher. if you look at real rates, malaysia is quite low. we don't see them having much room to ease. especially if global growth is resilient that they could hike. taiwan is already hiking. at this point we don't have them hiking further. we still think risk reward they could hike further because of the exception -- exceptional growth coming out of taiwan and the fact that growth has been strong without a capex story. of capex picks up, there's a risk given the cycle in tyler roth -- in taiwan that there is risk of further hiking. annabelle: that was joanna from the citigroup global markets conference. david, that ubs asian investment

conference underway in hong kong. david: in fact, our next guest is the curator overseeing the event. joining us from the four seasons is the head of apac product management. good morning, thank you for making the time. i was there were you are yesterday, i was having a look at the agenda, and we are two days in, you're the curator, so we will make you stick your neck out. what was to stand out based on all the conversations and panels that you guys have had their? >> good question is people have picked one session because we have had so much fantastic content. the thai prime ministers speaking on the room is packed. it's very rare to have a sitting leader speaking at an investment conference, so we have been very honored to have him here today and he has been giving us an extremely bullish look on the thai economy tourism coming back, fbi booming, that has been

a big standout today. yesterday, inevitably, one of the big debates is around marshall policy. we spoke to them and clearly investors are having this issue of where interest rates go. something that's very popular and john kerry joining the climate. that was one of the biggest issues were resolved. david: try to speak up, i know that it's not just behind you right there. you mentioned inflation remains a key worry for global investors in terms of asset allocations. one thing or one development that has trumped inflation as part of a key driver of returns has been ai. i know you guys have been very deliberate in making sure he ai is part of the conversation there at ubs. is that something that your clients asked you to do?

neil: over the last year has been the number one issue for everybody. obviously it's got us know where that when chatgpt came along the interest levels that really exploded. even though we know so much more about the impact of companies today, i think the macro economic impact is something we grapple with. olivia blanche already was talking about this yesterday. sitting down just after this they are also grappling with the subject. the very credible mines, nobel laureates trying to figure out what is it mean. there is still an enormous uncertainty about what it means. a really critical issue when we think about what ai should do. we have to think about for five different panels around ai, the impact on the economy, on the markets. a lot that clades are interested

in from this theme. annabelle: what has been the tone of the conversation because they see that stock rally from february stalling, is there a sense investors see that as an opportunity to buy or is it about reassessing and thinking there hasn't been enough fundamental changes coming through yet? >> it's a great question. the mood music coming out is quite positive. i wouldn't see people are pining the table with optimism, but corporate's are confident. on the consumer side we've had talking about businesses being on plan, if not, a little bit ahead of plan. internet companies have been talking a good story. the rally has been very strong. perhaps it's taking a breather, but the meetings have been trying to assess if there are fresh data points. i would say the mood music has

been quite positive and china, not a surprise given what the markets have done, but the corporate's are a little bit more cautious than what the market has already been doing. i will tell you the general tone has been somewhat positive. people are not getting carried away, corporate's are not getting carried away, investors are not getting carried away. there's green shoots appearing on the consumer side, industrial companies talking about it picking back up. internet companies, capital return, rising margins, cost being returned, these are the sorts of things that markets are built on. it's not just gdp growth. you want to see higher returns. there's a lot of stories that would support that coming out of this conference. david: i hear your former hat talking as an equity strategist. let me push a little bit more on that. certainly in the conversation around exposure to china is's, i guess your point, not so much bridled optimism, optimism is warranted but still cautioned.

is there a sense from those meetings that we are ready to talk about china be on a tactical equity play at this point in time or does that seem a few months down the road still? >> being somewhat cynical as a former strategist, bull market start reluctantly and then they tend to carry on as the data gets better in the news gets better. we've had that first leg up. our only ubs strategist moved overweight on china a couple of months ago and that has been great so far. but to keep this going, you need to see more evidence of the economy getting a little better. that is certainly consisting of what we've heard. you need to have more confidence if the risks are coming down. on the property side my colleague has been writing a lot about this and highlighting some of the policy measures on the government is very supportive. a take on that front. the corporate's getting a little bit more optimistic. as i said, we've had data points

from one-on-one meetings. there is always a little reluctance to get carried away. i would say that fresh news coming out of this wouldn't disappoint somebody that wants to be more optimistic. maybe that is me being guarded about what we've seen, but the data points have been encouraging that this chinese mover the china market move can continue somewhat further. annabelle: that was head of apac product management at ubs. of course, as we mentioned, property measures one of the latest coming through from china just tracking how the gauge of broader chinese developers are performing in the session today, a little bit of upside as we see china's megacities loosening their homebuying rules and a coming into the sector. we will have more details on that ahead. this is bloomberg. ♪

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annabelle: here are some of the top global stories we're tracking. the israeli military says its tanks reach the center of the southern gaza city of roff as it conducts a precise set of operations. israeli prime minister benjamin netanyahu says the ground invasion of roughly is needed to root out thousands of hamas fighters. sunday's airstrike on the air camp that reportedly killed 45 people will not mean a change in policy on supply weapons to israel. hong kong's national security police released a security law for the first time. in there is an annual vigil to commemorate the 1989 tiananmen square crackdown.

they made online quotes with seditious intent telling people to join unlawful acts. she's in detention for a separate charge. saudi arabia's crown prince mohammed bin salman said his father has recovered from a recent illness. the saudi government announced early this month that the 88-year-old monarch was being treated for fever and a lung infection. questions over the kings health came as iran was rocked by the death of its president and in top official in a helicopter crash. david: we are struggling to find great spots although maybe here in the form of energy plays on the back of some of the news that annabelle just took you through an oil prices just to make things simple. oil prices have been on an upward trajectory the last 36 hours or so, 80 bucks on the most active contract on west texas. put the boards also on the pain point today was the smell down a

see across the bond market with the massive move up and yields to the u.s.. even more so, this yield we see in australia, the long ends, we have 10 and 30 year yields on track for the biggest single day move on absolute yields going back to about october last year. japanese 10 year yields 107 as we are as far as status concerns. global macro movers, the tone across the markets has grown more negative in the last 30 minutes or so. we talked about the bond markets there as well. proper hump day, as they say. her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock.

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annabelle: welcome back, you are watching bloomberg markets: asia and we are going into the lunch break. april taking a look at the action because when you look at trading bonds, they are fairly thin right now but you are watching china in particular. avril: we saw how the big cities continue, property restriction easing after shanghai we heard from them. this raising optimism we've seen follow-through after the unveiling of $40 billion worth of propping up the sector in terms of helping those local governments to take on those unsold homes support for the real estate sector. we have seen csi 300 in the green today on a day where it's really negative elsewhere even on the hang seng. tech is not doing that well. especially as we see u.s. yields rising. keeping an eye on dollar offer u.n., levels we haven't seen since november, worth keeping in mind from the strategists out of muzuho.

they think that for the pboc is not about specific levels of depreciation of the chinese currency. i want to quote you through what we have seen from expectations for a economist for china. let's look at what we see out of japan ensures stocks are capping declines in the benchmarks amidst these higher yields. look at the 1.08 level keeping an eye on sits above 1.57. let's look at what we see from economists via bloomberg. we had some say we will get a boost for gdp and revised of

words that some of the other indicators it was revised down. so it makes you get a sense that the government will do heavy lifting. david? david: particularly as retail sales numbers come down, i noticed that investment needs to pick up to april's point. really along the same breath, private economists in the imf is raising their own growth forecast for china, so the projection from the imf is 5% expansion instead of 4.6 percent projection that they had earlier on. that 5% basically put the imf in line with the growth target out of beijing around 5%. the deputy managing director spoke exclusively with bloomberg about why they actually upgraded that forecast. >> we have upgraded china's growth by .4 percentage points for this year and for next, so we have growth projected at 5%

this year and 4.6% for next year. two main drivers are the better first quarter gdp numbers that came out for 2024. that lifting up our growth projection. the second is way of incorporating newer announcements made on the policy friends. those are the two main reasons for the upgrade. haslinda: some say 5% is out of reach for china. they say property sector is 60 million home still unsold and some point to china vanke under financial stress. at some point that is likely to weigh on confidence, sentiment and growth as well, what's your take on that? >> china's economy is continuing to recover, so we are certainly seeing consumption is recovering, but it has some ways

to go. the strength we see of public investment remains, private investment is still weak mainly because of the weakness in the property sector. we do see signs of recovery but we need to see more evidence of that. and despite that, we do expect that growth will be around 5% this year. firstly, i would like to recognize the policy steps that have been taken, the recent announcement that involves creating equipment of firms in consumer goods of households. in our view, war -- more will be needed. on the property sector front, what would be helpful is deal with the problem of presold housing. so the number of houses that have been presold but not completed, to see a bigger role for the central government to

come in and to deal with that to be able to complete those presold houses because when that happens that will help household confidence for developers. in terms of providing support, plus, we think there should be a fiscal neutral stance. it's important that the spending goes in the direction of helping low income households. they are the ones that can consume more of that income and that could provide a boost to the economy. haslinda: how are you assessing other risks? some say there's a risk of a trade war. g7 finance ministers calling on china. it will reimpose those tariffs expiring and we have china itself saying that it might impose 25% tariffs on imported autos from the u.s. as well as europe.

how might it impact china's economy as well? >> i was just at these g7 meetings and there were times where there is questions being raised about the global trading system and the fairness of it. the, as a general rule, we are in favor of an open rule-based trading system. any distributor they have with each other will be through the multilateral trading system through the wto. there are concerns with industrial policies that come up in conversations everywhere. many countries at industrial policies has implications not just like their allocations put potential spill for the rest of the world and that is generating all risks of greater fragmentation. here's where we think it's

critical for countries not to move unilaterally to address this, put to work with each other, to strengthen the trading system, to come up with better rules of engagement when you have countries using subsidies. there is a common principle of how to deal with these kinds of issues. haslinda: you talk about industrial policy overcapacity, that was one issue that was raised to us in an interview with bloomberg. he says that perhaps cheap chinese goods will be detrimental to the whole global economy. how are you assessing that? >> firstly, when we are looking at china, we should just step back and recognize the macro situation. the fact that overall demand in china remains weak, we still have a negative output gap predicted for china. in an environment where there is weak demand, that is going to generate imbalances. and that's where action needs to

be taken. keep setting aside implications for the rest of the world just for china being able to raise demand is going to be helpful. secondly, for all countries including china that are deploying countries, you have to make sure you are doing this in a targeted manner, which is also temporary, otherwise you might end up with miss allocating resources within your own country and setting aside this bill with the rest of the world. in both -- individual countries perspectives it is important to look at the resource getting well allocated. this time they distort signals and you end up with a much less productive economy. these are what the economy seem to play -- pay close attention to. annabelle: that was the imf's first female directing governor. we will hear from the metals producer at the atlanta-based filing for details of its upcoming ipo.

we will get more on the company's outlook as well. more ahead. this is bloomberg. ♪

annabelle: five minutes away

from the open of indian equities today. you're seeing futures guiding a bit of the drop in the open and going across broader asia today given these expectations are the fed staying higher for longer and how it's going to be affecting central banks. of course the indian election is still underway. actually had a bit of data coming out as well. according to bloomberg, we've got a c modi's party winning more than 303 seats in the general election in order for indian equities to extend their record rally days. david: we will see, i think that's really down to the future as they say. one thing that is fairly certain is this deal that is about to take place. we are talking about the american unit. we now know hits details of the upcoming listing. i believe the roadshow is on going now and hopes to raise 900

million are close to 900 million u.s. dollars of values. in the recycler of aluminum around $12 billion here. for more context on the big picture, let's bring in our colleague. take it away. >> good morning, you did get the headline numbers out, just to reiterate, we have this come in last night, this was about the ipo that we have known about for a while but didn't have all the details. now we know it's the indian parent and listed company here in a india that seeks to sell 2 million shares. 7.5 percent of equity for just over $1 billion at the top end of a price range that's between $18 to $21 per share, and that puts the equity valuation of novalis at chess close to 17 billion, that's 12.7 billion to be precise. this ipos big news, but we would also like to talk about the demand for aluminum and copper,

both are key businesses and join this morning by the managing director. that you for your time. i have to ask what can you tell us about this ipo, why you are doing it, and what the use of funds will be. >> at the outset, i think you did a fantastic analysis of the ipo already. because of the regulations we just started the roadshow. i will not be able to comment at all, but i think you did a fairly good summary, so thank you for that. >> i understand that you are under restrictions to share details, but in the roadshow's you will tell prospective investors about what you hope to do with the money collected. and what the prospects for the business are. i'm sure you could share with us some idea of where those funds they you will raise to the ipo

will be deployed. will they be deployed to your current program, what's the plan? >> i think you will get to know that as soon as we close the ipo. >> i could spend more time pushing you, but i can see that i will have much luck. i do want to talk a little bit about where you see the demand situation from broader business. you ended the year with low shipments on aluminum, what does that tell us for fy 25? >> i think we are lifting it quite strongly. i really believe the demand for all these various sectors that we work in, the demand is strong. the q4, which is the q1 calendar shipments record less.

i think this year we are looking at a could supply demand situation. on the supply side there is not much coming in especially for copper, especially as the prices will run out. people are really worried about whether supply can keep up with the man. i believe that further commodities in particular calendar year 20 34 and 2025 are going to be very strong. >> how much of this is contingent on the ongoing recovery would china and how big of a role does that play and potentially during that forecast? >> i have consistently said that what happens in china is probably the single biggest impact i think that the signs of what's happening in the chinese economy, especially in

construction because on renewable energy is the demand of elementia and copper. china has been a great story for us so far. but i think now that the stimulus has been given to the construction site, which consumes roughly 20, 20 5% of all the minimum and a large percent of copper is probably what is going to drive commodity prices and demand going forward. >> would you like to put numbers to which kind of growth you expect in this year of fy 2025 as well as broader demand growth in that sense? >> i let go geographically but i think we are expecting it 7% to 8% year on year for aluminum and copper. for china to be particular, the demand will be around 4%, in the u.s. it will be around 4%,

europe needs a fixed flat and we will be happy because the link in the global economy chain continues to be europe. >> will the bulk of the demand be automotive because beverage was not as strong as you anticipated last year. so where do you see the strongest growth come from? >> i will give you a rundown sector by sector. our biggest sector which is 20% to 50% is the beverage gap. beverage last year was weak due to restocking. but you could see that in q4 they have had a record of 951 of shipments. so the beverage market globally has come back quite strong. the auto sector is doing well, building and construction has started to pick up with u.s. interest rates. people know that may be the cuts are not going to happen at the

pace that they were expecting, but they know the rates have probably peaked. it is probably reflecting and housing and construction. so i think the construction sector could do better this year and better last year. and then in aerospace, which is small but quite lucrative for us, the demand of the aerospace sector is absolutely very strong and it's really a capacity constraint we are facing over there. >> the stalking of new products, you have already solved allocated capital made torture projects, as well as the battery forward projects and on the raw material side i understand that it was nickel and coal belt minds when it comes to the mineral licenses that india put out in february this year. what are the updates you could give us on the progress of both?

>> on our capital projects we will spend a billion for the next three years in india. as you put out the top projects we put out is what we are going through the regulatory clearances right now and we should start breaking ground by september, october. we are also going to break ground on a couple of recycling plants in india. we are going to be completing our 170 rolling plant in the first quarter coming out by december of this year. small but interesting, we will be working on the battery and going to start our project on the copper fun. and we are also working to start the rolling plant in the middle east.

as i said it should be not of a billion dollars every year going forward now. we have a copper exploration block that starts the explorer -- expiration program. nickel and cobalt is big on lithium mind. i am quite encouraged because there's about 38 critical minerals that are put out by the government and i think we will be participants of this process. we have put together a technical team and we get into exploration. most of these require expiration before they come to production. >> the debt is not very high yet

but you have read out your inspection plans under $5 billion of debt are you going to use these ipos to pay that off? i understand that will accrue to the low companies. >> i could talk about the balance sheet right now. you're on a negative net debt situation because we have debt of about seven or 8000. we have made cap experience to be made on the cash we generate. if you look at it for elementia him, we generate enough on the balance sheet on its own to find our own capex. internal accruals for the organic plans that i just don't like. >> what are you telling investors on the road shows

because i know there is so much interest in you have been tightlipped even if it's because of regulatory restrictions. >> because of the regulatory restrictions, i like to keep my lips quite close to. >> we will leave it there. thank you for joining us this morning. that's by the managing director laying out not just the organic capital out great plans for this that's fairly ambitious here in india, but also with the demand outlook is for copper across the world. annabelle: indian markets six minutes into trade on the outlook is a little bit of negativity here. most moving to the downside so far. one of the stock standing out is -- because we see that one jumping around 5% at this point but there are reports from the times of india saying that the adani group chairman is looking

to take a stake at 197 communications. and even that they met the founder of the company and ceo on tuesday to finalize the contours of a deal. that's a reporting we are getting through here. 197 is the company in question jumping around 5% at this point in time. adani stocks are fairly flat right now. this is another want to track with earnings coming up later today. but we will have more ahead. this is bloomberg. ♪

annabelle: some of the top corporate stories we're tracking here today in toyota's proposal to the acura toyota to its board is coming under pressure from two leading proxy advisory firms. institutional shareholder services is urging investors to vote against a finding -- founding family members citing the regulatory violations. they have also recommended in novo. chinese carmaker byd has unveiled a new hybrid power train able to travel more than 2000 kilometers without recharging or refueling. the upgrade means the automakers hybrids could cover the distance

from new york to miami or from munich to madrid or a single charge and a full tank. the first two vehicles are the midsize sedan's with this zero .606. you can see byd is really jumping into the session. this really puts that oil maker ev company way apart from its peers. david: 2000 kilometers without a single charge brings to mind what you look at market. in it's customary to bring something for your team, leave that, not that it's good that we've had too much of it recently, plenty more ahead. this is bloomberg. ♪

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