high-yield or e.m.? krishna: e.m. diana: e.m. priya: neither, but if i had to, e.m. one more cut this year by the fed or are they done? diana: one more, possibly two. krishna: two. priya: one or two. jonathan: is the repo rate a problem of last week or months to come? >> months to come. >> months to come. >> last week. jonathan: great to catch up with all of you. that does it for all of us in new york city. this was bloomberg "real yield." this is bloomberg tv. ♪ yousef: you're watching the best "daybreak: middle east." the major stories in the headlines this week. aramco attack. half of saudi arabia's oil output is taken out by strikes on a key processing plant. oil prices surged by the most on record because of the response. trump says the u.s. is locked and loaded and ready to act if iran was behind the attack. the finance minister says the strike has zero impact on revenues. ♪ yousef: headlines were dominated by the news that saudi ar

high-yield or e.m.? krishna: e.m. diana: e.m. priya: neither, but if i had to, e.m.athan: one more cut this year or is the fed done for 2019? priya: one more cut -- diana: one more cut possibly , two. krishna: two. priya: one or two. jonathan: is the repo rate a problem of last week or for months to come? last week or for months to come? priya: months to come. diana: months to come. krishna: last week. jonathan: great to catch up with all of you. diana amoa, priya misra, and krishna memani. that does it for all of us in new york city. this was "bloomberg real yield." this is bloomberg tv. ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. taylor: i'm taylor riggs. this is the "best of bloomberg technology," where bring you all

high-yield or e.m.? krishna: e.m. diana: e.m. priya: neither, but if i had to, e.m.athan: one markup this year by the fed or are they done? diana: one more, possibly two. krishna: two. priya: one or two. jonathan: is the repo rate a problem of last week or months to come? krishna: last week. jonathan: great to catch up with all of you. that does it for all of us in new york city. this was bloomberg "real yield." tv. is bloomberg ♪ mark: i'm mark crumpton with bloomberg first word news. president trump says he has "an amazing relationship with chinese president xi jinping" but that right now they are spat.""a little a completeooking for deal, i'm not looking for a partial deal. china has been sorry to buy our agricultural product, if you have noticed over the last week, and some big purchases, but that is not what i'm looking for. we are looking for the big deal. mark: u.s. and chinese officials held talks in washington this week with the aim of setting up high-level talks in october. the president delayed a tariff increase scheduled for october 1 on $250 billion in c

high-yield or e.m.? krishna: e.m. diana: e.m. priya: neither, but if i had to, e.m.han: one markup this year by the fed or are they done? diana: one more, possibly two. krishna: two. priya: one or two. jonathan: is the repo rate a problem of last week or months to come? pre-a: months to come. >> months to come. krishna: last week. jonathan: great to catch up with all of you. that does it for all of us in new york city. this was bloomberg "real yield." this is bloomberg tv. devices are like doorways that could allow hackers into your home. and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today. francine: bill winters is a consummate global banker with a track record that speaks for

including approval of the county's e.m. contracts and annual approval of the programs rules and regulations. thank you for your time. thank you. public comment i comment is clo. any additional comments or questions? i'd like to move we send this item to the full board with positive recommendations. can we take that without objection. >> great. mr. clerk, please call item number 4. >> clerk: agenda item number 4 ordinance and many of the administrative code to create office of division of the human rights decision department to create a city wide racial equity framework and assist the racial equity, analyze and racial equity and carry out various other policy and recording. to require city department to create racial equity action plan and updates of such plans and require city departments to designate employees as racial equity leaders and require the department of human resources to produce an annual report in the city workforce and mr. chair, this item has been requested to be a again diesed as a committee report for next

jonathan: where does e.m. fall into the calculus?na: within high-yield, on the one hand, you have governments cutting rates. you have to be selective. you have better quality names where the policies to actually be supportive, which would support some select local markets. we have seen a pretty strong duration rally in e.m. local as central banks have been cutting. within sovereign space and credit, there is value to be had in going up, although spreads are closer to what you see elsewhere. but there is some value going up the credit just because of that income space. jonathan: the long dated credit has had a massive year through 2019. in fact, there is an index we have here which basically captures some of the long dated names within corporate credit. gains north of 20% so far in 2019. is there any incentive to go further out along the curve for these corporate names? is it steep enough to have that incentive there to say i will take the longer dated corporate paper? krishna: i don't think so. jonathan: you guys will be sticking wit

what effect will it have on e.m.? term,: in the near financial conditions are the most important, and they have been easing. with the ecb this morning, the met cutting, china providing stimulus, this has been very supportive for e.m. assets and the search for yield. if you look at emerging market theormance, since all of trade wars flared out last year, it's been extreme a positive. i think this will continue as long as we see this accommodative policy from the developed market central banks. shery: the ecb rate decision, we just mentioned, the euro was whipsawed and what does this mean for the u.s. dollar and how this would affect emerging markets? we are hearing from fitch that yen's are pacing downgrading risk because of the stronger dollar. denise: the dollar has been kind of sideways for the last few months. i think the next move will depend on what the fed does. easing, ied also wouldn't expect to see a lot of dollar strength. as long as all the central banks are using in a more synchronized cycle. if we did see

we are more constructive on e.m. currency relative to e.m. local currency.too see more e.m. currency debt. those currencies which are benefit.o inflows will paul: check out our interactive tv function at tv . you can dive into any of the securities or bloomberg functions we talk about. you can also become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. you can check it out at tv . this is bloomberg. ♪ paul: this is "daybreak: asia." kathleen: it's time for a quick check of the business flash headlines. some say cash is king and japan think so. bloomberg data says japanese companies are sitting on a record cash pile of nearly $5 trillion. the total has more than tripled in the past six years despite shinzo abe vowing to stamp out corporate cash holding -- hoarding. so investors say it should be invested or returned to shareholders. paul: shares plunged after their shares were going to be sold in hong kong listed wind power generator and it may be privatized. it may consolidate all of it

does that affect the usual theory for investing in e.m. e.m. -- e.m. john: it does.al banks are dropping rates or holding. here in asia, we have seen most central banks are dropping rates. a few are holding onto it. if there is any kind of currency movement with the u.s. dollar, attends to help emerging markets and also countries in this region as well. investors -- investors should focus on valuation. those are the ones that will generate more attractive returns going forward. is a big region. there are lots of different economies. one thing that seems to be true is the extent to which it exports -- which exports have suffered. we can see that is directly linked to the trade war. tothat something you can put one side and focus on individual companies, or is it a big an air force that it is one of those things that gives you caution. john: certainly, the matter-of-fact -- macro factors are a key. the u.s.-china trade war is a big cloud hanging over the markets. you can just take a look at, let's say, korea, for instance. korea is a big supplier to china and the u.s..

trump former campaign managerco y lewandowski scheded to e.m thewo tdeon s fus >>ng a liveki l> ook outsided day of cooltemperatures. mid morning, some of youight see a drop o or f in ra good g.rn. > 17th. temperature daytuday. what's up, erin. >> he rochelle rotella. >> good morning, keeping thingsp of rain or two, temperatures getting intohe but the into th forecast. >>> outer loop crash, residual dela bsdd gooluck m eat.ti mar several burner. inpolice are investigating anotr unprovoked attack involving a laoue grdap it happened earlyy in the shaw neighborhood, melanie alnwick joins usol fromice headquarters with the latest. mel? morning, r: s a man and hiswe spent the evening at the passen and attack geok tedo f.r seventh an matter of fact about the same group of teen robbery of a woma. the other for the assault just a few minutes before the robbery. the man who does not want says t ten young men walk pasd and sucker punched him in e back of the head.he spoke with evan . >> it's disconcerting be a the victk of with no provocation whatsoever. it really just sucks. >> reporter: and thaid m

paul: when you are looking at corporate debt around the e.m., do you sometimes have a bit of concernround transparency? we have been running a story about a firm in indonesia, a textile firm, that which issued some dollar bonds, which $.15tly slid from $.85 to in the space of 15 months so you do have to be careful, don't you? denise: it is a large universe and you have to be comfortable that you have access to management, that you have financial statements that are released under international standards. you need to be selective. the default rates, when you look at emerging-market corporate's, actually have been quite manageable, and in fact, lower than what you have seen in the u.s. high-yield market. paul: asset management cohead of emerging-market debt, denise simon. thank you so much for joining us. coming up next, hong kong's leader faces the people as protests range for a fourth month. carrie lam's dialogue session, next. this is bloomberg. ♪ paul: this is "daybreak asia." is "daybreak asia." i am paul allen in sydney. shery: i am shery ahn in new york. paul: hong kong's chief

i point the out about samsung breaking dan brought up samsung on the call because i'm an e.m guy. look at alibaba up through 182, 183 breaking through the upside of resistance thu think about what that means and global cyclicality those are the biggest market cap stocks. will they lead the market? of course? and apple to me is the place you start. because i think the way apple traded through a difficult two weeks is extraordinary the release is behind them whether you liked it or not. the company has leverage to pull the same one microsoft pulled on buybacks you name it. >> back to the original question is microsoft the key to new market highs >> as if no one answered it. >> kind of >> no i don't think microsoft is the kai to new market highs. you want the banks to participate. at some point you need some of the material stocks some of the old rust belt names that have been under pressure. so i think microsoft is a great peg. dan was a genius to cone that term maga but i don't think it holds the fortunes of the broader market. >> what's interesting my contention has been always ev

we have seen that correlation with dollar china to the rest of e.m.uch close to a record, that correlation. where should we be avoiding at the moment? mitul: i think in a sense the yield assets and asia still look reasonable. you want to avoid anything with the trade impact that is still worrying. we had the pmi which showed contraction continues. but i think most of this is based on trade hopes. we went to see entree discussions in the next week or two to see where they pan out. still a long process to get any real deal done on trade. in the meantime asia will suffer from global weakening in global trade as they are seeing from the u.s. and europe given the weakening economies. that is a big an impact on exporters like korea and taiwan and singapore. we are seeing fiscal policy injections. trade countries in the region are still the ones that are more vulnerable. i think a lot of pain has already taken place in these markets. but i think there is still some pain to go. rishaad: thank you for that. stick around if you would. just have to get through t

--k bond yield from e.m.s we have a record now, you can see that if you're looking for some yields, this is the place to go but it does carry a risk. would you be getting involved? >> absolutely. we think that a lot of value has emerged and high-yield emerging-market hard currency debt. the gap between high-yield and m ig is higher. selection is key of your. you have a contrary and call in your notes. i was just doing a segment earlier this afternoon. about how they have those eventual bonds and debt of $15 billion. why do you like argentina? >> we think investors are overly themistic before about economic adjustment, about his electoral prospects. too much has been priced into the bond market and the hard currency. there are -- they are trading at extremely low dollar prices and pricing in and aggressively structuring. we don't think that if he gets elected president will be able to say much about his economic policies because it is still a candidate. however after elections we think that he is likely to be

i would not look at the euro as a safe haven -- e.m. i agree. i was not -- barry: i agree.as not implying -- when we get to the next significant global financial crisis, the dollar will have such a move that there will have to be some sort of an agreement to mitigate some of the pressure. it cannot be the only source. when those countries run a current account, surplus, you think about the ecb buying more than 100% of government securities, there is only one place for the money to go. vincent: when you talk about central banks, i think this is the biggest risk for central bankers, to get the kind of inflation they don't want. it is not controllable, it is out of their reach. all they could do is try to raise rates to push up against it, but it is the wrong kind of inflation. it is not that demand pull that they like to see that shows really good, strong, economic growth. it is the kind of underlying pangs that we did see in the 1970's, the beta the existence of central bankers. alix: all right, we have to leave it there, tracy alloway and vincent cignarella, thank you, guys

dollar strength, i think it is exhibiting the deficiencies in e.m. countries.t have been running down the reserves. i think it is all linked. ther: i am going to see same picture but from the other side. i think it is important we call out how destructive negative rates are. i do not sound like a fear monger, but let's remember the great depression the 1930's happened because of the mix of tariffs and currency devaluations. that is why the post-world war ii regime was about a general agreement on tariffs and fixed exchange rates. it is the toxic mix of the two. negative interest rates are a screen central banks are hiding behind to run bigger policies. it does not work. it is a nice theory, and it might stimulate domestic demand, but it is not happening. it does not stimulate credit. the japanese banking system and the european banking system is shriveling in our eyes. that should be called out. i hope christine lagarde will call it out. it is terrible. alix: may be behind closed doors -- she is pretty political. what do we do about that? if we are in this kind

chris: this whole e.m. is basically a liquidity place. acceleration brought about by liquidity and when you see a lot of the pretty coming in the markets, gold is a great indication of that. and we see a lot of gold price strength. chris: tons of gold price strength. relates to this trade war story because the other thing the e.m. tends to call quite well is trade growth which is being impacted by this. a lot of em's feed off of china. anna: a lot of confusion about what the dollar does. tensions global pushing people into the dollar. chris: and the fed cutting much slower than everybody else. verynk they have got to be selective in e.m. at the moment. anna: thank, chris watling. still ahead, political unrest in hong kong. the city had its 30th straight weekend of protests. this is bloomberg. ♪ london, i amom anna edwards with this special edition of bloomberg markets. 1:19 in london. 8:19 in new york. let's talk about the markets a little bit now and the market impact we have seen from the hong kong protests. for a 13thgathered straight