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tv   Bloomberg Daybreak Asia  Bloomberg  September 5, 2018 7:00pm-9:00pm EDT

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yvonne: 7:00 a.m. in hong kong. live from bloomberg's asia headquarters. the top stories, silicon valley in the spotlight. tack on grills big privacy and foreign interference. emerging-market fears of mixed payments raises fears to multiyear's highs. past 7:00 p.m. in new york. president trump says he has completed a trade deal with south korea but canada is bulking and china is bracing for more. all that adds to pressure in the market. asia-pacific stocks set for a sixth day decline.
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yvonne: starting with breaking data out of south korea. the current account balance coming into a surplus of $8.75 billion. this is bigger than what we saw the previous month of june. it could be good to keep that volatilityen the we have seen in em and the pullback in the tech sector. kathleen: we had tech heavyweights on capitol hill, sheryl sandberg from facebook, jack dorsey from twitter and notably absent, larry page from alphabet. we are taking a look at the south korean won and the u.s. south koreane the
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trade deal, donald trump says he is ready for that. routerging markets, that continues. that is certainly a reason for pressure on stocks. nasdaq was the biggest loser because faang stocks fell off as those tech leaders were testifying to congress to mixed reviews. you can see a small loss in the s&p 500. the dow jones eking out a small gain. yvonne: still that e.m. weakness continues to deepen overnight. taking a look at currencies in the developing markets, what we are seeing with south africa leading losses, we do see the rand unchanged at the moment. we did see strain coming into the argentinian peso as we wait for ballots from the imf. indonesia,hing stocks took a beating yesterday, dropping 4% in jakarta.
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have a contagion effect spreading further in asia. not a lot of relief in sight. taking a look at equities, asian currencies first. dollar-yen still holding unchanged. as well for the aussie. equity seems set for further losses, new zealand down one third of a percent but read across the board. let catch up with the first word news. the u.s. trade deficit widened in july by the most in three years and the gap with china hit a record as the two sides indulged in tit-for-tat tariffs. they had the biggest increase since february. exports fell, driven by declines in soybeans while imports rose .9%. talks inys trade
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washington remain constructive and both sides are expected to offer new ideas. president trump says a post-nafta deal will happen with or without canada. the president also said the trade deal with south korea has been completed and will be signed in the coming weeks. >> we will let you know about canada. a lot of people say how are you doing? we will let you know in the next two or three days. the pressure in emerging markets has said iran to its lowest in weeks. the currency has lost one quarter of its value since saturday with many dealers turning off their displays as it fell. the collapse of the currency has been fanned by president trump's decision to abandon the nuclear deal. one of japan's busiest airports remains closed after being flooded by a typhoon. osaka international in
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suffered damage from the most powerful storm to hit japan in 20 years. the storm cut power to half a million homes. the airport was further isolated by winds that drove a taker into the bridge to the mainland. global news 24 hours a day over the air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. dagenhart, this is bloomberg. yvonne: thanks. valley in the spotlight on capitol hill over bias, fake news and foreign interference. jack dorsey and sheryl sandberg faced questioning and the possibility of regulation. let's get to our tech support a, listening in on these tech stories. selena, what did you make of the questions this time around.
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selena: in the first hearing, there was a lot of collegial sentiment among the lawmakers. they seemed to be aligned in terms of the lines of questioning to twitter and facebook. on electioncused meddling and making sure they had done enough to ensure the upcoming elections. it is clear from the responses of twitter and facebook that they are investing more, hiring content moderators but have not found a bulletproof situation. foreign actors are constantly evolving. just a few weeks ago, russia and iran were part of a new coordinated disinformation campaign. the second round of hearings with jack dorsey testifying solo was much more partisan, more political. republican and democratic lawmakers disagreed on the purpose of the hearing, the
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democrats saying the concern of censorship and anti-conservative bias is completely invented. and actually a waste of time to be discussing. yvonne: what did you make of jack dorsey's performance? it seems like he was apologetic. candid about some of these biased algorithms and how they are working things out. is that why twitter shares fell? selina: jack dorsey was surprisingly well performed and rehearsed. lawmakers i think found it refreshing that he came off as introspective and philosophical. it was a good contrast to sandberg. and to zuckerberg's previous testimony, which was very rehearsed and prepared. the bigger share drop is due to investors being spooked the statements jack dorsey made around the fact that he is fundamentally looking at how they can change some core
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aspects of their business. the fiftho be that priorities are dealing with election meddling in that does not bode well for advertising revenue. regulation keeps coming up. presumably that is why they are appearing before congress. lawmakers are trying to decide if they have to make changes. what kind of regulation could come out of this or should come out of it? selina: regulation is still living but any real action will probably take a long time. we heard lawmakers say that the wild west days of social media are over. senator mark warner put out a white paper with a dozen options for regulation. i think after the first hearing, it became clear that there could be potential reform around section 230, which had given
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these platforms legal immunity content thatating users post. many lawmakers brought up the legal sale of opioids on the platform and whether or not they should be held responsible for deaths as a result of these sales. there is a potential for gdpr data privacy regulations to come to the u.s. that bothn ad act have fact, that would increase transparency for political advertising. it is unclear what kind of regulation could come out of this, but it is a sentiment among lawmakers and the companies that regulation is coming. yvonne: liver technology reporter selina wang joining us from washington. thanks so much. joining us from our perspective, j jacobs, a vice president in new york. is this a one day wonder, this selloff in twitter stock?
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or is this something that is a threat to the sector? jay: we have seen this play out the next -- for the last few months. we saw the selloff begin a few months ago. i don't think this is one day only. this has been continuing for months. the question is when does it stop and the social media companies resume their rapid growth. seems that the landscape changed so quickly. mark zuckerberg did not know he was going to create facebook when he started at harvard. is that part of the problem? it has been difficult for the companies to keep up with how quickly these have overtaken vast portions of our society and make the changes that people are demanding. jay: there is no question this has been a fast-moving industry. recently.nly ipo'd the first phase we saw in this industry was rapid user growth. the second was monetization.
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now we are looking at the phase of regulation. how do you monitor this massive user base and turn it into a positive platform? we have had three phases in six years. that is rapid. to different have jake how vulnerable each company is to write a tory risk -- do we have to differentiate how vulnerable each company is to regulatory risk? jay: i think they will face their own challenges, but it will be the same flavor. we are looking at how data is being used and monetized, and how is being protected. all of these companies are collecting data in different ways but using it in the same selling advertising. i think these will be a similar outcomes for these companies. how big of a setback has
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been made with google standing in congress? jay: i don't see that as being a major hurdle. i think a lot of stuff that happened today was more theatrical than substantive. we did not get any information about what regulation could look like. we just learned about the regulations companies are imposing on themselves. i don't see an anti-chair with google being a long time -- an empty chair with google being a long term hindrance. jack dorsey talked about removing comments, are they able to avoid bias toward republicans. is that a fair question and is that a big challenge for twitter? jay: i think it is incredibly challenging to answer because people want to view this in black and white. this is good, this is bad, this
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is republican, this is democrat. this is a spectrum and the question is where will twitter or facebook or google job the line. i think all of these companies are still figuring it out themselves and congress is trying to help them figure it out. use of data, privacy, how big of an issue is that and do see regulation there? jay: use of data is the entire business model. these companies are built off of their data because they can specifically target people with advertisements. be a breakout, of this testimony how that it can be going forward -- is that a bad outcome of this testimony, how will it be going forward?
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it depends on whether they see it as a threat. yvonne: in the last couple months between facebook's testimony and now, are we seeing enough change in these companies theirt comes to policing sides, blocking users and content, enough to effect the midterm elections? do you think that needs to be hammered out still? jay: there is no question there is a lot of change happening. facebook hired 10,000 people on the security team. happening, can they keep up with the bad actors at the same pace? i simple you don't know. that will bear out in time but it is a catch and mouse game between social media companies and the people who want to perpetuate these fake news items. jacobs, global x funds vice president joining us from new york.
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still ahead, the national trade council joins us to discuss whether a new nafta is the only way the u.s. can compete. kathleen: plus is a market correction inevitable? that is the view of wells fargo asset management. this is bloomberg. ♪
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yvonne: this is "bloomberg daybreak: asia." more now on the u.s. markets. we were talking about twitter and facebook leading a tech to climb. oil falling the most in three weeks and a selloff in e.m. assets rolls on. it all added up to a perfect storm of risk off. >> the trade situation getting worse, the e.m. selloff getting worse. --ategists say economists save the columnists may not last the -- strategists say
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calmness may not last long. emerging currency is at a year low. we go to some indexes and assets, the tech heavy indexes were low. about,n reason we talked twitter and facebook, faang stocks have been momentum stocks for the past year or two are now taking hits. a lot of the heads of social media are testifying before the senate committee. let's take a look, go into the bloomberg, gtb is where you can find our library. this is called the growing gap. volatility rising while the g7 currencies stay placid. this blue line is the gap between expected volatility in developing nations and the big uptick in the volatility in the
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last couple weeks. let's go to an etf. fallen toee that has the low of the year. we have stocks approaching bear market territory and economists say no relief in sight. let's go to some big movers. tech and energy among them, halliburton down as similar companies talk about a third quarter slowdown. square and spotify taking big hits. the justice department indicating it is likely to approve a merger with an insurance company and this is positive. there are a number of mergers in that sector, but this is not likely to get approval soon. yvonne: thank you so much. let's get more on markets from wells fargo global cio, kirk.
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where do we start? sellingemerging markets off, a continuing trade war, tech giants testifying and yet stocks have a small setback. does this make sense to you? does.i think it earnings continue to be strong and we have a tremendous boost from stimulus. in terms of emerging markets, i keep hearing contagion. is there contagion or not? i think we need to keep an eye on this. with the emerging market index down 10% and things of the shanghai index down 20%, you will want to worry about it. i don't think we are back to where we were in 1998. you are talking about the asian economic crisis. how do you know when contagion starts?
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in the turkish lira, if i am in the rand, other currencies, it maybe doesn't feel like contagion but it does feel like crisis. kirk: you want to watch whether ,he bifurcation continues whether weaker economies like brazil or turkey continue to thatproblems and does spread to the stronger economies. we'll see. yvonne: what responsibility do you put on the federal reserve? not saying they have done the right thing -- done the wrong thing, but if you go back several months, it seems that one of the things that started pressuring the emerging markets is the federal reserve hiking saying they will stay on this path at the same time they are reducing their balance sheet and driving up more liquidity. interesting is that it created a strong dollar. i have been saying all year that i think the strong dollar will continue.
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obviously, the strong dollar for many economies is a problem. to that point, i think you are right. you have the central banks of the world who are very much coordinated and now the are a little in lack of sink, meaning the u.s. is becoming more restrictive in terms of underlining balance sheets. gap in differential and interest rates contributes to the stronger dollar. you have a fed tightening and the stronger dollar is not helping the situation in terms of the emerging markets. if the e.m. space is not going to drag the u.s. down, is a going to be a tentpole? we saw a lot of rotation and values, to think the growth rally is intact -- do you think the growth rally is intact? expectation is that
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the next year, earnings will slowdown. that may slowdown the tech sector. i am not of the view that the emerging markets are going to drive u.s. tech stocks. i think it is driven by earnings. we're talking about the tech space in general. we have a gtv chart that is showing amazon being the second company to reach the $1 trillion market cap behind apple. this remains one of the most shorted sectors. can you take a bullish stance overall? i don't think you can take a bullish stance, but i think a lot of the tech sector will continue to do well, although not as well as it has been. googles price went up, but the pe came down because of their strong earnings. there are strong companies, amazon, google, that will do well.
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the other thing is the creation of the new indices in terms of consumer discretionary shares and the change at of infotech, which will have some impact on tech stocks. what is one specific investment you would recommend to people right now? kirk: i would recommend non-correlated assets. institutional investors are looking for non-correlated assets. you want to look at things like a floating rate, things like the value stocks that have been out of favor. growth has beaten value for 10 years. the last time that happened was before the tech bubble in 2008. kathleen: thank you so much. wells fargo asset management global cio, kirk hartman. a lot more coming up. we will look at trade. the canadian foreign minister it's ready to come back to washington. tariff is getting
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ready to be imposed on china by the trump administration. give it right here. this is bloomberg. ♪
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yvonne: a quick check on the latest business headlines. , the wallxpress street journal says in a gray began last month looking at onther customers were misled the company's handling of international payments. the fbi refused to confirm or deny the report. work has failed to win space at the world trade center. the organization received better offers for media and tech companies. sources said that took wework by surprise but they continue to look for space in an iconic building. billion in tariffs
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loom large for china and trade worries hinder japan but one asian nation escapes unscathed. we look at south korea next. this is bloomberg. ♪
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yvonne: 7:30 a.m. in hong kong. a sunny morning but the markets are looking brutal. hensing down 2.6%. not a single stock was up yesterday. let's see how things go today. kathleen: 7:30 p.m. in new york. markets closed mixed. the nasdaq lost 1.2%, s and p lower, doug jones with a small gain. -- dow jones with a small gain. yvonne: you are watching "bloomberg daybreak: asia." first word news with jenna dagenhart now. investor optimism over
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u.s. stocks continues to rise but so do wall street's warnings. citibank says -- sterling jumps on reports that the u.k. and germany dropped brexit demands to ease next year. future ties in the eu and the u.k. is willing to settle on a more vague intent. we are heading to a no deal brexit, driving sterling to its lowest month in a year. investor anxiety about potential missed debt payments in developing nations is raising the cost of default swaps to multiyear highs. brazil, argentina, turkey and
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south africa. sees probability climbing to 41%. turkey's default on's rose to 30%, the highest since 2008. the late 90's of asian financial crisis has emerged as a haven from the widening emerging-market selloff. thailand has developed every other emerging nation in currency. thailand has a large account surplus and foreign-exchange reserve as well as a low level of over and sees -- of overseas ownership. damagearthquake left no at the nuclear plant. the tremor cut power to the islands 3 million households. one person is reported dead and several more on accounted for. all airports and real services have been suspended until further notice.
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global news 24 hours a day over the air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jenna dagenhart, this is bloomberg. kathleen: thank you. we are counting down to major market opens in the asia-pacific. here is sophie with more. emerging markets nearing their territory and no matter what started it, knee-jerk reaction to trade tensions, more and more strategists are saying it looks ok true bear market is starting. that looks to be the case. we are in shark infested waters and it will likely continue to be choppy as the central banks are considering options. we are seeing the worst and route since the global financial crisis. isn the u.s. stock rally garnering caution from citigroup and goldman. let's check in on asian futures, bracing for losses to continue in the region and for korea.
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current account surplus reported this morning will not be enough to help the sentiment and a korean won has been caught up in the em storm despite stable reserves. keep an eye on that, that can be the litmus test for whether investors can differentiate within em incident of lumping them together. the yen is said to halt a four-day drop. japanese traders will be watching thursday's operations. we will see if trump pulls the trigger on trade tariffs. that is looking to stabilize. aussie dollar back below 72. numbersce action on gdp after we saw a revisions to chinese pmi data and that tumble in hong kong. to give you a sense of losses in the city, here's a breakdown by sector. we see it all in the red, led by tech. tencent looks like
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there locking in profits. yvonne: you mentioned the em herd mentality. emonesia, the biggest casualty prompting calls for action from policymakers. how bad is the damage? 5%hie: it sank as much as wednesday. we are seeing a surge in bond yields. the two-year yield jumped by the most since 2012. be a sign that investors are betting on an out of cycle rate hike before the policy meeting in september. since mid-may, the key rate has been boosted by 125 basis points they wouldernor said be taking steps. we will get you the latest reading on indonesian consumer confidence and that will be
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interesting, given the maelstrom we are in. yvonne: thank you. sophie kamaruddin checking what to look ahead to. the clock ticks on, the u.s. imposing new tariffs on chinese goods as early as today. president trump sounds more optimistic about negotiations with canada. david engel, he has been following the of elements for us. are we seeing signs of progress? david: it looks like it and it is a better environment and over the weekend and we saw this tweets from president trump. if no deal is better than -- that is what justin trudeau has said, no deal is better than a bad deal for the canadians. trump said it we can reach a fair deal, canada will be out and congress should not interfere. a warning shot into u.s.
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lawmakers. today, trump was asked by reporters and said talks a been constructive. he said we might know within the if canadar three days is in or out. the u.s. leaving the door open for canada to come and negotiate a deal. donald trump says this will have a new name. yvonne: a new acronym. stephen: you can reach were bookie and las vegas to put that's down. chrystia freeland, the canadian negotiator meeting with robert lighthizer after talks last week failed to reach an agreement. he has named a lot of things like trump tower, etc. maybe will be the trump trade agreement. let's turn to korea and the u.s.. that trade deal close to being completed. seems like it was not the
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toughest deal in the world. i wonder if there is a model that we might be able to use to pull canada in as well. signed: the chorus was in 2012 and donald trump has bashed that is being unfair. deal,ave renegotiated the the south koreans have agreed to it. they say, negotiations were done about two months ago but they have not been passed into law. south korean lawmakers have been threatening, they could not sign that into law if donald trump outside the framework of this new negotiating -- of this new negotiation, if he in his push to protect american autos extends that into korean auto imports. south korean lawmakers might be rus.hat -- veto that new ko
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right now, korean auto's face no tariffs. it is the biggest reason why billionrea runs in $18 trade surplus with the united states. ,here is still possible hurdles but right now it looks like this will be given the go-ahead as early as the u.n. general assembly later this month. yvonne: korus is the easy one. thank you. stephen engle, our chief asia correspondent. let's cross over to asia and bring a new president of the national foreign trade council. , great to have you. can we have a better now after deal -- a better nafta deal? rufus: i think it will be better to get a new agreement in place. there will be provisions that will be beneficial.
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it updates nafta in areas like e-commerce, digital economy, customs related things. we are still concerned about some of the language that has been discussed between mexico and the u.s., but overall, it is an acceptable deal. the main concern is without it being a three-way agreement that includes canada, from a u.s. business perspective, it is problematic. we need the entire north american economy covered. we now have an integrated global that we neededem to compete with europe and asia. hopefully they can get canada on board. there are still some sticking points. the prime minister justin trudeau saying that no deal is better than a bad deal. is it worth getting up the whole deal for canada given how much
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nafta has benefited the country? rufus: i think the canadians will have trouble walking away from a deal. the deal has too many poison pills in it for the canadians. they will delay agreeing to it and continue to negotiate, but it is not clear what happens if canada and the u.s. are deadlocked. , andess is making it clear this is a position we support in the business community, that's canada has to be on board. i think the president would have a difficult time trying to propose a purely u.s. and mexico deal to the congress and get them to accept it and at the same time have free trade between u.s. and canada go down the drain. i don't think that is a conceivable outcome. we'll have to see. i am wondering -- let
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me pull up a chart. it makes a powerful point that i think is parallel to the point we make about china. we see these white buyers that are canada -- white bars that are canada exports to the u.s. and these blue bars which are u.s. exports to canada. it looks put a constant. the point being, who is more dependent on whom? does canada have more to lose in justin trudeau says we would rather have no deal than a bad deal? rufus: i can't see the chart very clearly, but i think those bars are based on their exports as a percent of total exports. obviously, canada's exports to the u.s. are a huge majority of their totals. the u.s. is much less dependent,
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but let's remember, canada is our second largest export market. or maybe our largest. , the u.s.being exports all over the world, canada is more dependent on the u.s., but my point is the u.s. is also dependent on an integrated north american production economy in order to compete with europe and asia. apart willull that be harmful to industries like our auto industry, which has had such a resurgent and is doing so well. we have cross-border supply chains, we have integrated production factories, and you can't pull that apart. at the same time, we export a lot of agriculture to canada and mexico. we have complaints about some of --ada's agricultural riddick restrictions, but we have major exports to mexico and canada and
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we do not want to see those disrupted. it is still a good relationship. kathleen: is a preaching too far to try to find some connection -- reaching too far to try to find some connection? should this deal be reformed? can we extrapolate that is a positive path to follow with china? rufus: i think given that they are our neighbors and there was significantly smaller than the u.s. economy, where we have more leverage in the negotiations with them, it is a different situation with china. we are talking about the world's largest exporter, second-largest economy, obviously they are going to be major problems in trying to dictate terms to china. i think the way we will have to push china is to have a
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functioning alliance with europe, japan, other asian nations to convince the chinese that they have to get on board global norms in areas like state owned enterprises and technology transfer. i don't think it is quite the same as negotiating with mexico, which is 8% the size of our economy. and which desperately needs to maintain its relationship with the united states. we are going to have to continue to take a tough line with china. the main objection we have is to immediately jump to this huge escalation of the. a tariff war with china, before we have had a chance to work out the kind of deals we're going to need to negotiate. if we do see tariffs on
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$200 billion of chinese goods as early as today, could escalate further? absolutely. it has escalated further from what was originally $50 billion to what will now be $250 billion. there is a real riskier -- real risk here that we are widening the trade war. meantime, businesses are going to be disrupted and cost will go up. i don't think this is the way to get the matter resolved. we need a more consistent and patient approach with the rest of the world helping us push china. still seems to be this paralysis in these negotiations. thinking theu.s. chinese economy is buckling so they will have to cave. on the other side, china seems
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to be hoping that some type of outcome in the midterms will allow republicans to lose and trump will have to back down. is it right to make those assumptions were they misreading each other? rufus: i think both sides are playing high risk poker in taking that approach. i don't think we should expect the chinese to back down and buckle. i think they are ready to endure economic hardship if they feel they are being pushed unfairly. i don't think the chinese should expect the u.s. to back away from its demands. happens out of this is at some point, cooler heads on both sides start saying let's negotiate. kathleen: one quick final question. ,f the $200 billion is put on our bloomberg economic team sees a lot higher prices on many goods.
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is that a miscalculation for president trump? ifhis base going to be happy they have to pay $5,000 more for a new car? rufus: i think the potential of auto tariffs is a game changer. it widens the trade war tenfold over what it is now. it hits american consumers in the pocketbooks, hurts the u.s. auto industry because of foreign retaliation. we export 2 million automobiles industry relies in global supply change. it is not a winning proposition and i think that will become clearer as the president gets closer to doing this. a high-stakes game of international trade chicken. thanks for joining us. president of the national foreign trade council. up next. we hear how world bank resident landed the job despite lacking a finance background. that conversation is just ahead.
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keep it right here. this is bloomberg. ♪
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yvonne: breaking news coming through now. the family office fund in australia is saying blackstone is ready to raise aussieffer to 552 dollar's according to the company. they have raised their bid after we did hear from the ontario municipal employees retirement system offering a $2.4 billion for the property company and topped blackstone's original bid. blackstone is not going to be walking away. they are ready to raise the $5.52 aussie.
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2012, a physician and anthropologist landed the top job at the world bank. davidng kim spoke to rubenstein about his rise to the international financial institution's presidency. bikini president of dartmouth in 2009. you're trained as a medical socialand a anthropologist. you have no financial background. saysf a sudden, summit he would you like to be the president of the world bank. what would make you think that would be a job you would be qualified for and why would you want to leave the academic setting? jim: it is a question that a lot of people in the financial world asked when i was nominated. known in all of my
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years working in development that the world bank was the most important institution for people who wanted to help poor countries develop. i came to the interview with president obama and he asked me exactly the same question. he literally said, why should i nominate you and not an economist? pitch, when i made the probably the most important pitch of my life. i said, the first question i asked was have you read your mother's phd dissertation? he looked at me and said, yes. i said i am an anthropologist like her and i have not been in the finance world but i have been doing development work for most of my adult life. i can tell you how it is working on the ground. he looked at me and said i get that. david: was he surprised you read his mother's phd piece? jim: he was. we were together in a
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more informal setting and he said, that was one of the best employees to get a job i have ever seen. did you feel intimidated when you did not have that background? jim: i felt humbled about it and we have people in the audience who taught me a lot about how the world bank works. financeike, learning and macroeconomics will be a huge challenge for me, but for the previous president's coming in, learning development must have been an even bigger challenge. i felt like i knew what's development was like. hard -- workedd hard to learn the other things i needed. at a: when you show up meeting and tell people you're the president of the world bank, to their eyes open wider? it is a pretty good title. jim: that depends where you are.
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in washington, they will say, do you have a branch in alexandria? some places, you are extremely well known. other places, you are not known. if you are playing golf, and you are a good golfer as i understand, i will ask you about that later, do people give you more than you used to? jim: not at all. they have the impression that i have access to cash myself so they try to get that from me. yvonne: that was world bank president jim yong kim speaking on the david rubenstein show. this is bloomberg. ♪
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yvonne: we're counting down to the market open in japan, south korea and australia. we do see this a.m. selloff, no relief in sight. this tech pullback is weighing on the asian session. javalespeaking to
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augment about the space. he says emerging-market currencies could turn worse. coming up. this is bloomberg. ♪
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8:00 in hong kong, we are live from asia headquarters. i am yvonne man. welcome to daybreak asia. the top stories this thursday, the heat is on in the market. asia-pacific stocks faced a six straight day of decline after dragged wall street down. this is the longest since the financial crisis. none of the selloffs since 2008 has inflicted so much pain. kathleen: i am kathleen hays in new york where it is past 8:00 a.m. on wednesday. president trump has completed a deal with mexico, but can is still talking. and a bump in the road, sales slowing in the u.s. and the
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world's biggest market, china. kathleen: -- yvonne: asia is bracing for another challenging to a given the emc law. doesn't seem -- e.m. selloff. not see hold in this mentality, especially when this high-stakes international game of poker between the u.s. and china is said to happen later on. kathleen: when contagion hits, it is something that doesn't stop until it does. traders love to sell into this trend which seem so strong now, and the federal reserve is on a big back burner, but what we haven't talked about is jim bullard, president of st. louis fed, warning that the fed could get to restrictive.
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that is something nibbling around the edges because the beginning of this emerging market unraveling, federal reserve rates were a part of it. yvonne: it is one to watch. before we get to market open, look at hong kong, because it is one market that has been caught in this perfect storm of em weakness. the fed tightening entry concerns, the hang seng -- and tradeling concerns. the hang seng falling yesterday. this is only the second time it has happened in the last 19 to 20 months or so. that is one to watch. let's get you caught up with the market open. sophie: it was red for the hang seng yesterday and today. we do have stocks falling across the board. the nikkei 225 is off. the asx 200 is under pressure, the kospi losing ground, but there is stabilization on the currency front. the korean won adding .2%,
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finding support from the current account surplus, widening further. this might be a hint investors are willing to differentiate between e.m. space instead of lumping them in to the same bad basket. something happening, the dollar rally fizzled out and the pound surged on brexit optimism. the yen is said to halt a four-day decline. offshore yuan is trading. we are waiting to see if trump will pull the trigger on chinese goods. we are waiting for the boj second on by operation after it announced changes to september plans. we are seeing jgb futures up slightly and the 10-year yield above 11 basis points. with stocks to watch, pulling up stocks on the radar, keeping an eye on invest office in australia. blackstone offered a rival bid. this is an australian operative that has 37 office buildings across the country. i'm watching stocks after a
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magnitude 6.7 earthquake shook the northern island in japan. that left the entire prefecture without power. hokkaido electric falling 4%, although the company did say there was no impact to its nuclear plant, which has been off-line since 2012. keeping an eye on japanese airlines, and he has canceled flights. kathleen: checking the markets on an interesting day. let's get to first word news with jenna dagenhart. jenna: canada said trade talks in washington remain constructive and both sides are expected to offer new ideas. there have been nearly daily meetings. a post-nafta deal will happen with or without canada, says trump. a trade deal with south korea has been completed and will be signed in the coming weeks. the u.s. trade deficit widened
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in july the most in three years. the gap with china hit a record as the two sides indulged in tit-for-tat tariffs. it increased to $50 billion, the biggest since february. exports are down 1%. imports rose .9% in a broad-based gain. the birthplace of the late 1990's asian financial crisis has emerged as a haven. the thai baht has outperformed every developing nation currency in the past month. the have a current account surplus, and a low level of overseas -- overseas ownership. volkswagen is ready to go head-to-head with tesla on electric cars but has no intention of handing over any cash. frank vitor told bloomberg news there is no substance to report that dw is an investor.
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elon musk has aborted a plan to take tesla private. vw will remain a player in the electric car market starting later this year. one of japan's busiest airports is closed indefinitely after being flooded by a-. -- a typhoon. they suffered widespread damage storm tomost powerful hit japan and 25 years. it killed 11 people and cut powered to half a million homes. the airport was further isolated by winds that drove a tanker into the bridge to the mainland. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jenna dagenhart. this is bloomberg. yvonne: thanks. sharp escalation in the u.s.-china trade war appears imminent with trump threatening to like new tariffs on thousands
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of chinese goods before the end of the week. let's get to tom mackenzie joining us from beijing where officials appear to be playing the waiting game. we have had a deutsche bank report put out that is raking down the scenarios on this, and it echoes the conversations we have had with chinese officials. deutsche bank says essentially the beijing policymakers are digging in for the long haul. they want to get past the midterm elections taking place in the u.s.. they are watching those developments to see whether or not the power structure in washington changes and how that may affect the stance with trade relations, and in terms of the isact on u.s. consumers, if ofit is likely on thousands chinese goods, the impacts on
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the consumer, those shoppers going to places like walmart will be pretty keenly felt because you are talking about $200 billion, $78 billion being products. they will see price rises likely. china wants to see how those layout, how it impacts -- play out, how it impacts the consumer , and how it changes the conversation in the u.s. deutsche bank outlined two different scenarios. one said you don't get a u.s.-china trade deal anytime soon. they see the yuan weakening to 7.4 by 2019. continued monetary policy loosening, increases of the fiscal deficit to support increased infrastructure spending. if you do get a deal, then the yuan strengthens to 6.5, you get normalization in monetary policy, picking up in imports, and you get moves to open up the
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services sector and foreign investment. thatis the rosy scenario looks very far away at this as we count down to the potential additional tariffs that could kick in from midday tomorrow beijing time. yvonne: if the latter happens, there would be a big party with stock markets around the world, but when you look at the economics, how if at all has this impacted the u.s.-china trade balance so far? tom: it has not gone the way trade -- trump would have hoped. record seen in fact a deficit in the month of july, picking up to $36.8 billion u.s., and that is because exports out of china, aircraft and soybeans, have come off a steep drop, but conversely, the imports into the u.s. have picked up close to 1%.
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you have a strong economy, tax cuts adding stimulus to an already strong economy. production and demand cannot keep up, so to economist are saying because they cannot, one release is increasing goods and services from abroad, widening the deficit. these additional tariffs, we will have to see if they change the course at all, but the broader view from economists is this improves the drag on the u.s. economy, not just because of the tariffs but the supply change moves we have been discussing and the broader more negative is this sentiment, and that is the risk one silver in north china spreads america that they have seen a cargo shipments from air china, china to the u.s. on their airlines because companies are trying to shift goods out for tariffs kick in.
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that is one tiny silver lining. cloud does seem to have one. tom mackenzie joining us from the heart of it all in beijing. the next big thing in tech is happening sooner than you think. unicorns from -- separate unicorns and underachievers. are oilour current -- prices sustainable resort we look at that. this is bloomberg. ♪
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yvonne: this is daybreak asia. stocks are off
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to a negative start, heading for a sixth straight day of declines. let's bring in our strategist to look at what is moving markets today. there are so many factors. what is the big one? mark: probably one of the most interesting things is despite the panic around em, most em assets actually traded quite well. what is interesting is to see in asia whether they will follow on that positivity, or the bigger theme, which is em turmoil. in the new york times we saw highly under pressure em currencies like the brazilian lira, all ofrkish them strengthened in new york time. these narrowed, so overall it is looking more positive, but we don't know if it is a reprieve, short-term, a
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little bit of a break in a selloff, or if it is a turning point. it might be. there is a strong chance to the latter because we are seeing this broad and it. normally when we get the macro, those who don't know about em and don't look at emerging markets, when they panic, that is when we know you are getting near to the end. yvonne: you are seeing a light at the end of the tunnel. he wrote about tariffs. everyone is waiting for the next trench of $200 billion of goods. you are saying that will not happen. i strongly believe there will not be the full $200 billion of tariffs implemented this week or month. it is much more likely to come in stages because precedent points that way. there are a lot of processes for bureaucracy and admin to implement these. there are automatic systems to update, forms, ports to be
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informed. there is a massive process. to give you some idea of the context, the first i think it items, $34 billion of tariffs, took six weeks to work out after the comment time. 279 took three weeks. now we have 6031 items under consideration. based on the rate this year, that would suggest 60 weeks from the end of the common time, so that would suggest a year or more. a straight line interpolation doesn't work. we have more time to plan for this, they have gotten used to it, but it still seems nearly impossible they could implement the full set of tariffs today. or muchuld be plans to, more likely they kind of common stages. maybe 20 billion, then 50 billion, but i think it is
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unlikely to get the full $200 billion implemented anytime immediately. yvonne: you are not worried about tariffs, but what about the pullback we saw in tech stocks? will that way on asia? -- weigh on asia? mark: that will be negative. we have some very dominated by tech stocks. tencent, korea, taiwan. i think the equity sector and the broader em are slightly different. normally em gets dominated by the fx world. we call that extremely in argentina and turkey, but that is a simple of overall. if the currencies holdout ok, other assets will find stability. for emerging markets, equities and bonds, generally the fx proportion dominates the returns, so it doesn't matter which equity if you get the fx largely right.
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whether itto see affects can find stability even in the asian indices. our mliv strategist joining us. you can follow more on this story and the day's trading on the markets live blog. you can get a market run down, commentary, analysis, expert editors, so you can find out more. let's see what is happening in the markets continuing. kong, thankn hong you so much. you share the optimism that mark had with em? reporter: thank you for having me. i would say i am turning my attention back away from trade tariffs for now. what i am looking at is the em currencies selloff because i see a different trend emerging. investors are attacking the currency that belongs to markets
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with high account deficit, so looking at the turkish lira, the argentinian paso -- peso, and what this means for the indonesian rupiah, the indian rupee, and i think the ongoing trade tensions, that could weigh on the em markets. kathleen: you are not seeing heard mentality that gets halted -- herd mentality? you think it is about fundamentals, or is there a certain country to look for for cues? jameel: i think investors looked at turkey for a q4 structure -- que -- they are looking at inflows. people will look at india and indonesia, but of course i am also watching out for the pboc market.chinese
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i think it looks over levels. kathleen: i want to show a chart showing the renminbi because if you look at this, the renminbi against the back it up currencies, there is a bottoming out after the two-week decline. how supportive is that for the em space jameel:? jameel:this is what we need to monitor because we saw em consolidate somewhat, and this supports the negative currency account deficit. i think the pboc will do what they can to support this handle, and it will play a pivotal role behind protecting the em currencies. kathleen: i want to ask about the central bank side of this. the federal reserve, what is impact thef how much fed rate hikes, signaling there is more to come, how much has
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that contributed to the emerging markets a lot of? -- market selloff? jameel: i think the federal reserve interest rate increase has been priced in. what i am looking for is a change in town from the federal -- in tone from the federal reserve that they will cause normalization -- they will pause normalization. this will provide a significant opportunity for rebound in em fx as we head into the next trade and year. raising interest rates, if they do ahead in september and sai december, there could be more. kathleen: the consensus seems to be firmly set on continuing until the fed gets to neutral, which will not happen until 2.9%, maybe higher, even though we had st. louis fed president jim bullard saying flat curve, you get to restrictive?
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-- too restrictive? jameel: they will monitor the global market, especially the effects area. they are becoming concerned about external headwinds and trade uncertainties, then what it appears to be with federal reserve monetary policy normalization. interestok at the most -- most recent interest rate hikes, the dollar has been muted , and that is all a significant pressure on em currencies because it has been priced in some time ago. these are very unpredictable. it is something central banks will be monitoring. back to asia fx, the dollar is still in question, whether weise he it or -- whether we see it or not. it seems asia outperformed the rest of the em space. we have a chart that shows that. we can bring it up for our viewers to say.
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but when the dust settles, what for thee you looking at weakness to save first? jameel: dollar-ringgit. that would show pressure from the past couple of days has been unnecessary because the relation has been more robust. yuan isthe chinese looking oversold. currency has weakened 5% year to date, but it can strengthen 2% by the end of the year as long as trade tariffs don't have a negative impact on investor sentiment. it appears they have become concerned low. kathleen: what is your sign to buy, and when you see that, what do you buy first with the emerging markets? jameel: i look at thejameel: thai baht, the chinese yuan, the malaysian ringgit. i'm concerned about other pressures with the south african rand, the turkish lira story will not go away.
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there is pressure on the indian rupee and the indonesian rupiah. hai and chinese are very attractive. kathleen: thank you for joining us. as for you, get a roundup of stories you need to get your day going in daybreak. go to dayb on your terminal . it is also available on mobile and the anywhere app. you can customize settings so you only get news on the industries and assets you really care about. this is bloomberg. ♪ is is bloomberg. ♪
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this is daybreak asia. i am kathleen hays. yvonne: i am yvonne man. i want to bring back and talk about japan at the moment. have seen literally a perfect storm around western hokkaido.
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first it was a 6.7 magnitude earthquake that struck the northern island, now we are ,earing about a power outage and toyota suspending their plant operation due to that. flights canceled, so certainly we are seeing certainly a lot of damage in that area. kathleen: not a tsunami, but a typhoon, earthquake, and the japanese are so used to these kinds of natural disasters. they do seem to take it in stride. in tokyo asked me, missiles are being fired over coke i don't, are they worried? -- over hokkaido, are they worried? they deal with it and move on. yvonne: we are seeing japanese airlines falling, hokkaido electric down because of the power outages. airports and railways affected,
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but we are learning that flights out of the airport could resume as early as tomorrow. a new haven for chinese savers is about as old and boring as a gets. this is bloomberg. ♪ is is bloomberg. ♪
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limited time get 150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need this bed. yvonne: good morning. it is 8:30 in singapore. we are half an hour from trading. bracing for further losses given volatility in the em space, and the pullback in tech stocks. kathleen: you are watching daybreak asia. let's get right to the first word news now with jenna dagenhart. jenna: sterling jumped on reports the u.k. and germany dropped key brexit demands to ease the way to next year's split. sources say germany is ready to accept a less detailed agreement on future ties with the e.u. and the uk's willing to settle for a more vague statement.
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they were heading for a new deal brexit, sterling dropping to the lowest. the pressure on emerging markets has sent to the iranian rio to the lowest on record. 150,000 to thet dollar. it has lost quarter of its value since saturday, with many turning off their rate displays since it fell. it has been fanned by president trump's decision to abandon the 2015 nuclear deal. >> i want to make something very clear. we don't consider political , orpoints, perspectives party affiliation in any of our policies or enforcement decisions. period. impartiality is our guiding principle. jenna: that was from d.c. today. speculation continues. citigroup talking about other
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pullback, sending valuations because of -- that has driven the bull bear market into what it calls alarming highs. the s&p 500 has risen 19% annually for nine years. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jenna dagenhart. this is bloomberg. time to see how the asian markets are shaping up. let's get an update with sophie kamaruddin. sophie: we did see a shift in em pressure from currencies to stocks, and that is continuing today. you see equities under pressure although some of the losses and korea have eased somewhat with the kospi off .1%. the kiwi and want edging toward -- korean won edging towards 19% . the worst of the meltdown could be over.
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the current account surplus widening even further. investors could differentiate between the em basket. we are seeing gains for the u.s. -- the em basket. edging the aussie towards 72 u.s. cents once again. we have seen it fluctuate around this level as we have had push and pull factors. we some revisions to chinese pmi . hong kong stocks could have added to that yesterday after it recovered with the gdpv. checking on stock movers of note, i want to highlight sydney. we have telstra on the right. this afternoon they cut their guidance on expected changes to payments, but that is expected to be positive over the rollout. and this one is jumping to attend we kind after -- 10 week high after a strongt --
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health care is sliding after declining profits through 2020 given structural changes including pricing reform for government drug subsidies. hokkaido electric falling after the earthquake hit the northern island which cut power. the company nuclear plant is on backup power after the quake. we are seeing stocks like this on decline. we are seeing construction stocks gaining ground in japan, you're seeingx materials pick up as well as construction machinery like komatsu and sumitomo heavy. so this is up .7%. kathleen: thank you. bloomberg's sooner than you think about it kicks off in singapore. we have global leaders with conversations about making the
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cities of the future smart, safe , and sustainable. let's cross over to the southeast asia correspondent standing by with a partner with a leading vc fund. take it away. haslinda: that is right. it is all about tech. making its debut in the lion city. i have a special guest. this is a partner at -- he knows a thing or two about investing in technology. good to have you with us. what is the thinking of investing for the company? >> when it was founded, we took a global look at investing. there were several reasons. one, we see technology innovation happening globally. you can see shanghai, silicon valley, bangalore, that spreads very quickly. you want to have investors that can see back across the globe. we think entrepreneurs with
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global aspirations are more than ever, so that is what we are looking for. thinking with a global mindset. how do you go after large market opportunities? howdy ago after -- howdy do you go after companies with this skill? looking at the last two years, they reflect that. a global mindset going after large market opportunities. we are there to help them enable and deal in this. haslinda: it seems to look on valley is dominating -- silicon valley is dominating tech. the likesen in asia of this. what is your take on this part of the world? kabir: that is an interesting trend that started in 2013. silicon valley is important, but if you look at statistically, almost 80% of what are called
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unicorns are located outside of silicon valley. you're seeing innovation happening across china, india. europe, other places in the u.s. so in southeast asia we are seeing especially in areas like consumer, mobile in a platform, scale businesses. we started in the 1990's. the problem of logistics and payment was already where companies are folding. southeast asia, logistics, payments is a problem. when you think about payments and e-commerce, you are looking for how do you impact the ecosystem? we have taken the view of investing behind the picks and shovels of southeast asia. investors are leading a logistics company here. we have invested in a company
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that is seeing how do you enable this ecosystem to go digital. haslinda: is it safe to say you reduce risk because you invest in like several rounds of funding? kabir: i think a lot of us come from backgrounds of previous private equity. we have developed elders, and we look at data for big decisions -- builders and we look at data for big decisions. you're seeing companies where the cost of historical contractions, you have some sense of last year, so you can see what is happening. it second is you can see how is a consumer focused company, what traction they are getting with consumers. you can speak to them. that has got a better idea, better judgment. we also have interesting partnerships. we have unique partnerships with
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the funding group, and that helps us think about trends very quickly, globally. it helps us make better decisions, but it also helps us capitalize growth for our company. it could be the contact performers of the world. you see one based in budapest, in the government vehicle space. we can help make introductions to real growth and help them succeed even further. haslinda: you are also invested in a company called bird which is seen as the uber of [indiscernible] why a company like that? kabir: sitting in a conscious where we think about the next stage of where transportation, cities are going to go. some cities, almost 50% of lastity is acquired in the mile. how are people living in zero to
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three miles of distance? sometimes the most efficient way is not a car. so becoming a sharing company, electric scooters, we think it is a good congress of technology trends. you have enablers like smart phone, gps, electric scooter technology. then you have got the environment where we think cities are ready for this. the first example and the sentiment for now is [indiscernible] this massive transformation happening, and that is [indiscernible] haslinda: it is all about scale. when you look at the parasol level, you are known as a great founder. why join b capital and not a growth fund? kabir: we are taking a private equity lens to venture investing. contact for in the
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approach. we think about opportunities across the u.s., southeast asia and india. there is a lot we can bring to the table. in my undergrad days i was running a food business. understand the challenges entrepreneurs go through. we think right now also the ability for something this scale, you work alongside large industries, we can see the images to help this link to large corporate's. if companiesreat are scaling large traditional industries with a partner that can help them with the right connect. that is what we are working on. i have never met a founder or a printer that has complained about to scale the business. investment-grade companies, and then really work shoulder to shoulder to scale them up.
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we have done that in our portfolio over the last few years. haslinda: i want to touch on valuation. everyone is investing in a startup. even unprofitable startups have a lot of funds going in for them. what do you think of the valuations today? how are you funded? kabir: there is a macro answer and a bit of a micro answer. with macro we are at the top end of a cycle, but our job as six companieso with an early stage, not one year or three years but a multiyear growth or industry. valuation is what you see a company can become in five years, 10 years. when you look at some of the founders we have asked -- we have backed, they are looking at massive transformation. not three years but 10 or 15.
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becauset as opportunity it is a global fund. in their geography they get [indiscernible] you can step out or the ones that are getting interesting you can dial in. we think now is an interesting time in singapore to be investing in southeast asia, india. we think -- we have been active in the last several months. haslinda: ok, we have to leave it there. joining us at sooner than you think. our live coverage continues from the lion city. yvonne: great interview. haslinda amin with b capital partner. we will have more interviews from the sooner than you think in singapore with has. this is bloomberg. ♪
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kathleen: this is daybreak asia. i am kathleen hays. yvonne: the new hot haven for chinese savers is about as old and boring as a gets, bank deposits. they have been shunned for years, but suddenly looking attractive. the head of greater china finance joining us in our hong kong set. volatility, the stock market, you must go somewhere else. why now? >> the short answer is safety. the chinese stock market is down almost 20% this year. p2p lending, which was a big returns,omising 10% people were losing money, so bank deposits, you put your money in the bank, you get 2% interest return, people are settling.
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yvonne: is this welcome for policymakers, in that they have for so many efforts mom-and-pop investors to get away from risky investments? sam: he really shows the fine line -- it really shows the final line china is walking because they want people to be in safer investments. they don't want people losing money, but putting money in the stock market, will management products is stimulative, and it will chin up the economy. china has a lot of issues with credit. there is a trade war. they want both. right now we are seeing more towards the safety side. kathleen: banks are offering structure as a way to that money. is this part of the developing banking system, something they did not try to push before because they thought people were not interested in these riskier investments? sam: it is interestingsam:.
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they really deposit accounts that have the basic returns, but there is a promise you could make more. you have the baseline of not getting money. they are proving more popular, up to 50% this year. authorities have tweaked what banks can promise. they will be hugely profitable for banks and investors. inot of times products come and it takes a while to shake out. kathleen: thank you for joining us, bloomberg's head of greater china finance. some of the world's biggest auto markets are reaching the end of the road for growth. sales in the u.s. have slowed with most a are carmakers missing estimate -- major carmakers missing estimates. it is not just the u.s. there is lower demand and growth in other major markets as well. what is going on? reporter: the world's biggest
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and fastest growing auto market has been slowing for the past couple of months. that is china, and a big factor war.in china is the trade we have seen a number of automakers including tesla and the of w which are manufactured in the u.s. have to hike their prices because of the tariffs that were slapped on u.s. cars, and that has spread through to the consumer with price hikes potentially deterring people from targets in china. in japan something similar, a drop of around 3.4%. that is due to people say the aging population. people not driving cars as they get older, and younger people not really buying into the whole car driving thing. holding on to things they do have. lining.growth been flat
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automakers, markets in the u.k., germany not really seeing growth at all. it is global. yvonne: and you mentioned the global backdrop. how big of a threat is it that we have potentially seen some tariffs being of limited on the auto sector? how serious is that? we already have higher tariffs from the chinese side, trumpe $200 billion lift may pull the trigger on as soon as today has a number of auto parts and things to do with cars on as well. the sector is being hit squarely in the trade war, but more broadly there is a more trend towards holding on to things we have seen in smartphones, where sales are declining because people are holding on to things they have.
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they are not upgrading, and we are seeing that trend in cars as well. yvonne: thank you. our asia global business managing editor joining us from beijing. still more ahead. this is bloomberg. ♪ bloomberg. ♪
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asia.: this is daybreak i am yvonne man in hong kong. kathleen: i am kathleen hays. let's get a check on the business flash headlines. a unit that manages $14 billion at its peak is said to receive a bid from private equity firm access for one dollar. fortunately for their predators that may not be the only offer with kuwait's agility public warehousing and abu dhabi international also interested. they are seeking asset sales to cover $1 billion of debt. yvonne: reliant industry is reaping gains, holding at wake up from years of slumber and hash the index, which trailed. shares have surged 135% since it launched telecom services, nearly four times, making it the best performer in the 30 stock index. the success has made investors confident reliance can disrupt
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other sectors. -- they: mainstream ads for thenning fusion and focus and put more muscle behind the ford mustang. jumped 35% last month. they will offer more variations including a special edition for the 50th anniversary of the steve mcqueen movie. search function stumbled for two hours when customers around the u.s. reported problems. this company tracks problems and said some people complained of the website. others complained on social media pages. customers sought some ads but no results. the issue is fixed as of 6:00 p.m. eastern time. kathleen: jd.com fell the most since january last year despite the stock has no peace in minnesota.
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shares fell 10% even as criminal defense minnesota -- colonel defense lawyers returned a person to china, suggesting the rate incident wasn't what it appeared. the inquiry continues. yvonne: now for a look at what is coming up in a few hours on bloomberg television. let's bring in rishaad. rishaad: have you taken a journey [indiscernible] yvonne: no. rishaad: the traffic is horrific and we are looking at infrastructure in the philippines. a man will be joining us in a short while and a half mile from howapore, taking a look at they actually tried to deal with this. this is the golden age of infrastructure including to the president's plans, private sector involved in all of that. we will talk about that. and then looking at investing in china. capital, onem jgb of the most respected investors --the country, talking about
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groupl as a man from dbs making headlines a few days ago, deutsche bankere because of their digital strategy. so there you have it. terrific lineup. i can hardly wait. before we handed over to bloomberg markets, look at how the markets are trading now. let's start with japan because we are seeing pressure on asian stocks across the board. let's have a look at just how serious the damages. of $200y the breadth billion worth of tariffs is what is hitting japan, the kospi and australian stocks as well. yvonne: look at the function now. we see it as a stock selloff across the board. you look at new zealand, plus
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down 1%. australia similar fashion. asia fx relatively stable here today. we do see the dollar weakness. we did see a little bit of consolidation with earnings. the peso and the era -- the lira, perhaps we have reached an inflection point as mark was telling us, whether the em contagion has been contained for now, and we continue to watch other asian currencies. the rupiah, whether it will approach the 15,000 level, as well as the rupee. coverage continues with rishaad and haidi next. kathleen: standby. this is bloomberg. ♪ ♪
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this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ♪ why did your parents come to the united states? dr. kim: my father was a refugee from north korea. david: did you feel discrimination? dr. kim: the people were screaming at us. david: you met and harvard medical school. dr. kim: we talked about the nature of responsibility to the rest of the world. lead a protest against the world bank and said it should be shut down. do you have any regrets? dr. kim: i am glad we lost that argument. >> 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. ♪

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