. >> i am sophie kamaruddin. we are counting down to the debut of china power and a chinese drug maker. this is "bloomberg markets: asia." rishaad: out the gate in singapore. rising equity markets. the chinese yuan gaining ground. the straight times index flat after the session. the nikkei .3% to the upside. tuesday, taiwan believed by tech stocks. from the open in hong kong and shenzhen and shanghai. two ipo's at the bottom of the hour. david ingles here to look at some rate of light for investors in china. 300, in case you missed it, 3368, best day in over two years. positive support out of beijing is the headline when you look under the hood. conditionsquidity contributing. what happened overnight when it comes to the pboc encouraging the bank not to engage in herdlike behavior when it comes to the currency. that leading to dollar china there.e were looking at futures. , buttle downside from that we are looking at gains across the asia-pacific, so a risk on session. hang seng futures on the way up. it does loo

with all that in mind, let's get it to sophie kamaruddin. ot of the marketplace. asian stocks mixed. japanese stocks. gaining ground the nikkei 225 -- japanese stocks gaining ground. the nikkei 225. the fed will raise rates as long as the u.s. economy stays on track. take a look at what's going on with aussie assets. we do have aussie stocks looking fairly resilient. up.a x 200 -- asx 200 the aussie has been taken on a ride, trading just above the 72 handle against the dollar. we are set for a third day of declines. as we digest the latest from canberra, we have high volatility on the move for the aussie dollar. we do have this picture then, guys, of putting rba rate hikes further off the table, potentially. soph, thank you so much for that. let's go to the latest in canberra, just past high noon. the deadline for the liberal party to decide who should be the next prime minister. lots of drama, lots of misinformation as well. paul allen is joining us. over the past few days, you haven't been able to write half the stuff has -- that has been g

let's bring in sophie kamaruddin. we have the u.s.-mexico trade deal. on theg good offshore renminbi. what are you watching? sophie: that may continue when you take a look at how futures are pointing higher in the region. we have data that could derail that risk appetite that is keeping the yen above 111. this wait on figures due tuesday. consumer confidence in august tumbled. the case of the bank of korea on friday. when it comes to emerging markets, the argument could be made that conditions are turning more positive after the u.s.-mexico trade deal and the pboc's efforts to support the yuan. you can see eem currencies climbed the most since january thanks to the rally in the peso. that came up just a touch. the euro was the exception when it came to the em space. the yuan is stabilizing after a record decline against the dollar, but it bears keeping in mind, kathleen, that the other drivers behind the $2.5 trillion rout in chinese stocks are waiting on the msci e.m. index. >> let's move onto ubs, because they are in the skeptics camp when it comes to

us get it over to sophie kamaruddin. asian futures looking modest. uds gathering this tuesday? sophie: asia may struggle to match wall street optimism. taking a look at the futures board, modest gains anticipated in the region. we are waiting on the iranian sanctions to take offense at midday, hong kong time. inflation data. foreign reserves due from china. investors get a chance to react. we are watching moves closely in the currency market which could dampen risk appetite. the dollar weakness anticipated. softened. a reversal could be in place. as for the turkish lira, goldman is calling for caution. no credible policy to address unsustainable balances. commerce bank saying turkey's central-bank move will lead to more currency weakness given the unwillingness to raise rates. they are hoping for positive data from the u.k. this week. the aussie remains under pressure ahead of the policy decision, forecasted to keep its target rate at a record low. central bank could cut its long-term inflation outlook this week. ramy: meantime, the earnings season. c

let's bring in sophie kamaruddin. like a pretty quiet session, but you have been focusing on japanese stocks, the biggest exodus since 1987. sophie: the biggest annual exodus since then. at the start of 2018, the nikkei but withng for 24,000, foreign outflows of $35 billion year-to-date, momentum has been derailed. you can visualize that on this chart. as we have observed, overseas investors typically take cues from yen performance, but this year strategists cite everything from trade to anxiety over next year's sales tax increase. strong corporate earnings in the u.s. has kept investors there homebound, and sean darby writes political risk and the boj slowing etf purchases. at goldman sachs, mixed economic data highlighted, and concerns about sustainability of corporate profit growth, but they predict foreign interest will resume by year-end, citing abe will likely claim victory at the election in september. also citing prospects for earnings, and increased buybacks and dividends. onhave seen attention japanese stocks

sophie kamaruddin.k about the weakness for the yuan with our guest from blackrock, head of china equities. those this affect coverage are looking at equities in terms of other asset classes? >> the currency is an important driver in terms of performance. people have weak memories from the 2016 episode. when there is a market move within a short time for the see cny, people have more bearish views. in this case, we are in a different situation because i don't think the economy is that bad. a lot of the movement is about risk premium and not necessarily about where fundamentals could go if the worst case scenarios play out. rishaad: nobody knows what the worst-case scenario is. just seeing the implications here. i got this chart from our gtv library, ford's pointing higher because we have tighter liquidity. they are trying to open these gates of liquidity. i suppose they will have more rrr cuts looking ahead. there seems to be a short squeeze taking place, perhaps. that could settle things down nicely. ho

let's get more on market reaction and do a market check, and bring in sophie kamaruddin. a happy friday. we have stocks opening lower on the board. the nikkei 225 snapping an eight day advance. investors in japan will have industrial output and job data today. it is a heavy date of line of best data lineup. you have china tmi a major highlight. it may point to stabilization. you do have the offshore yuan, trading below the 687 handle against the dollar. this as trump reiterated his stance that china is trying to devalue the currency. we also have korean sector activity. check out the jump we see in the korean won. it is now trading above 1114 against the dollar. the cost be also on the back him up by a third of a percent. the mood is still down for the kiwi dollar, as well as then bx 50. this after we saw the set from new zealand. the testament falling to a two-year low. this is confidence sinking to the lowest levels in a decade. the yen has seen benefits from this risk off movie. we have trading back below the 111 handle. the best month since february after trump said th

here is sophie kamaruddin.e: after that bounce we saw on monday from mainland markets, we are seeing a bit of a subdued start to the tuesday session. large-cap gauge edging tightly -- higher. check out the china small gauge up 2/10 of a percent perhaps tracking some of the gains we saw in the u.s. listed chinese stocks like alibaba, which gained ground overnight. also, the hong kong dollar. this is after the html intervene to defend the currency for a fourth time this month. ocbc thing the hong kong dollar weakness is likely driven by carry trade activities with apple liquidity looking for more. taking a look at the offshore yuan, back above 6.80. taking a look at some stocks, we are keeping an eye on, we are seeing early movers. chinese automakers continuing to climb. this is after we got robust stocks from chinese adding to the 15% jump on friday.the bmw venture remains intact . we are keeping an eye on other movers like tingyi, climbing over 5%. chinese baby related stocks thet be on the move as daily news r

let's get to sophie kamaruddin watching the open for us. stocks looking to set the ending of a volatile week with some gains. better late than never. we had a horrible thursday's session. friday looking better? haslinda: futures -- sophie: futures are indicating it could be better. china may not be able to see a rebound. futures are signaling potential gains for mainland markets even as wilbur ross says --stays tough on trade. we have commentary some of the people's daily reporting outlook is positive, the security general raising measures for capital market. encouraging overseas firms to list. pboc may cutaying the rrr for some banks once or twice in the second half, but the headwinds remind with msci china. the seaside 300 seeing its worst slump in a month, down 23%. the yuan, that could be the red flag bearer. not too far off from the all-time low earlier reaching the 6088 handle. bigger price swings looking likely with the offshore yuan's one-month fall. this is even before we get to september, a month that sees the highest volatility a

sophie kamaruddin looking at the markets and oil traders.wild swings in the currency due to trades with the contracts being less of a slamdunk. we have been looking at this story in detail -- we had all the fanfare when it launched in march. >> writes, it has been about we haveths and definitely seen the trading volume and interest rising, but if we think about it, it looks like shanghai still has a way to go because speculators do take a oute part, and we found from our analysis that investors take position in shanghai for 1.5 hours. , thenternational # speculators are holding it for more than 40 hours which is a big difference. if you look at the liquidity, ,rading is focused on one check and is traders want to do orbital trade it will be running with difficulty because it has limited options. looking at the obstacles, what is the biggest for global traders and investors in terms of having to trade in yuan denomination? mentioned, the biggest obstacle for early traders is the fluctuation in the yuan because they have to buy the oil barrels

sophie kamaruddin checking the markets.ks did slide aztec losses spiraled into a , passing 6.9% for the first time in more than a year. what is the out look for the yuan, and for that matter, do you see any intense pboc intervention in the pipeline? >> of course. the yuan is under the spotlight right now. the currency is the latest victim of the selloff in emerging markets. that is because of the dollar's and all the factors driving the yuan's decline over the past few months such as the china-u.s. divergence in whatary policy and -- traders are trying to do is trying to test the bottom line with the pboc. they want to see whether the pboc will support the currency at some point. as you just mentioned, the newest development is that the offshore yuan has inched very close to the record low. the last time it happened, the pboc intervened heavily with offshore liquidity to support the currency. the focus right now is whether the pboc will do this again. the views are actually very divergent. some are saying they will definite

sophie kamaruddin has details. a lot going on. >> not top level, but a lot going on. we have eco-data as well as earnings. stocks higher by indonesia after the gdp data beats for that economy. leading higher, set for a fresh all-time high. chinese stocks have been hastuating while the yuan pared its earlier rise. some movers in tokyo given this earnings flood, we have data soaring after its first quarter as the telco looks set to shop for overseas deals. japanese carmaker subaru is falling after -- reporting to ms. in first-quarter operating income. profit.id impact onomputer virus attack -- it works recover from this incident. manus: thank you very much. softbank numbers through the rest of the asian session. the yuan moves higher. the pboc announced a tweak. the move comes amid rising trade tensions between the world's two largest economies. chinese authorities pledged to retaliate any escalation in u.s. tariffs. joining us from beijing is bloomberg's china editor. good to see you this morning. it sounds like the chinese are hunkering down for the long, long haul. w

yvonne: let's bring in sophie kamaruddin. relief. be set for some also with the pboc.ave the dollar with its biggest decline on friday. the pboc indicating it had little desire for weakness. you, the shows correlations between the yuan and the commodities, they are at a high that we have not really seen. risk, such as slowing growth. not seeing a bottoming out. with this being said, let's check out. futures are nudging higher. political maneuvers are also alive and well. ramy: in the meantime, taking a look at turkey. in thentry will be spotlight because they are finally coming back from that weeklong holiday. what are you watching? vacation is over. given that break, it may low longer -- no longer be the case. how it has in on served. thisira breaking earlier monday. the emerging markets take their yuan.om the also watching the mexican peso. eye -- ping an a busy start to this week as we randolph a week that has not been that positive for asian assets. so much for the dog days of summer. let's go to australia now. morrisonrime minister promises stability after a tumul

let's bring in sophie kamaruddin. ike the setup is pretty dire when it comes to the fed and the doj. sophie: aside from the central bank focus we have this latest trade headlines that we are keeping an eye on the yuan given some of the concerns. the offshore rate has been under pressure. down 9% against the dollar since hitting the year high in march. u.s. chinahe showdown, the u.s. has added 44 chinese companies that make post national security risks. taking a look at the intraday moves for offshore yuan, after reaching 684 handle overnight it has recovered somewhat overnight with tariff headlines not as bad as they could have been. formalizing yesterday's rumors. no official decision on levees of $16 billion of chinese goods. light kaiser saying u.s. remains open to further negotiations. i want to jump in the terminal to check in on the 12 month yuan and f market. eddie much pricing in no expectations for further weakness in the currency. trading at a slight discounts. yet, with trade risks still looming large. the e

let's bring in sophie kamaruddin. this ongoing political drama that is happening in the u.s. latest fed minutes and trade talks. sophie: watching how the yen behaves as the dollar and treasuries are gaining. we do have a push back into technical support at the 110 level. it has been converging on its moving day average. we will be watching to see if the yen bounces. but check in on asian futures. we could be seeing modest gains when it comes to markets. australia has their own political drama to look into. santos -- asm china we had the results well. that is for the eco-agenda. we have the latest reading from japan and will later get taiwanese and singapore inflation data. ramy: the resumption of u.s. china trade talks will also be very critical. expecting the talks will drive rebound in chinese stocks as well as the yen. tell us more. sophie: the sentiment for chinese assets has turned overly negative in the past two months -- fores have been further negotiation beyond the talks will spur a rebound of sorts. you can see we are seeing it come through as equities could eke out

and i am sophie kamaruddin come life from the hong kong stock exchange for a trading debut. it is the first live tech company to take advantage of the newest --. ♪ rishaad: just checking on equities, climb being and breaking the losing streak that we had, we have a bit of an uptick taking place. like, ftse it looks china, features are looking about a half percent higher. nasdaq also on the way up, no doubt led by what has been going on with apple. let us look at the asian. markets, kuala lumpur and taipei, and we have gone alone par as the anomaly, down about .3%. all of this against the backdrop of this standoff between the u.s. and china. it is something which could be heating up again. will the trump administration propose raising tariffs on $200 to 25n of imports percent, from 10%, this coming hours after signals that the two sides are talking about talks to ease the rhetoric. we go to tom mackenzie in beijing. tom, how much do we actually know here? tom: what we are hearing is that this is a proposal from the u.s. trade representative, as you say, raising the tariff lev

sophie kamaruddin is in kuala lumpur speaking to the women committed to the top -- who made it to theget that insight, we sat down cimb, and tworom other executives. it was clear in our conversation that their intelligence, determination and wit is what helps all three women rise through the ranks. they also raised three kids each. the access to domestic health, government support for women to excel in the corporate world. they were honest about their struggle, dealing with splitting time between work and home, or being -- beating their own glass ceiling. >> we're lucky to be in malaysia. we have support for family members as well. that helps you remain in the workforce. in european countries, home health is a lot more difficult to come by. >> malaysia is lucky in that we all have a lot of domestic help. we all have family networks who are always willing to help each other. that actually helps a lot in a woman's career path. in life -- >> they also spoke to the willingness of their bosses to have confidence in their abilities to take these leaps of faith to allow women to follow in th

we will bring in sophie kamaruddin. trade talks have wrapped up without much apparent progress. praised tariffs. how can this feed into this busy week? where: the question is, to from here when it comes to the u.s. china dynamic russian mark -- china dynamic? officials had raised that -- what not be held until the u.s. elections in november. , weoutcome of the talks have the japanese cpi data coming in as well. nikkei futures pointing higher for now and pressure coming through for the kospi potentially. australia, we are seeing him uptick there. we are seeing downward pressure on aussie dollar. .aking a look at the agenda expected to pick up slightly. we also have reaction to alibaba's earnings that would be closely watched after its earnings miss. look at the offshore yuan. retreat inh a emergency -- emerging currency. we did not get a lot of progress on those trade talks. politics weighing on the aussie dollar. this political risk really has not been priced in. sophie: it does not look like it for now. a widening interest with the u.s., the oddly fell the most on thursday. uss

open in asia that is looking more negative than perhaps even the handover would suggest area sophie kamaruddinarkets. china is front and center, we dovish statement. sophie: gdp data, the head of all that we have asian stocks looking fairly mixed at the start of this thursday. this as the game of chicken continues on the trade front. that has turned fairly quiet. companiesd chinese fell the most since june overnight and in the wake of beijing's retaliation including some had of what may come there. the nikkei down by one third of 1%, yen traders waiting on the u.s.-japan trade talks. a third day of gains ahead of that, not budging too much after core machine orders for june posted a second monthly drop down 8.8% for the month. we are seeing early moves in the kiwi dollar. pushing out the forecast for a rate hike to next year and the kiwi has fallen to a five-week low in oil -- and oil under pressure. this is china hits the u.s. fuel exports with on 5% tariffs that are to begin august 23 so crude oil remains exempt for now when it comes to the tariffs from china. when it comes to stocks to watc

ramy: sophie kamaruddin on the markets. thank you very much, as always.ill following what's happening with tesla and elon musk, steering his company toward the biggest leveraged buyout of all time, but how is he going to pull this off? with a little help from wall street. late monday, musk tweeted he's excited to work with goldman sachs and silver lake on the deal, but they may not actually be on board. let's go to bloomberg executive editor for technology, tom giles. this is similar to the funding, not funding. goldman sachs, silver lake? what is the deal? tom: we are picking up on a pattern here, where it on musk sends out tweets that give an indication of things that are may be further along in the process than they actually are. he tweeted out late yesterday that he had a couple financial advisors on board. it turns out, in reality, they were not quite as engaged as he gave an indication. lakean sachs and silver are both indeed working with elon musk. neither of them is formally signed on, in the sense of having been retained, signature on the bottom

ramy: sophie kamaruddin on the markets there. of tirades from president trump against the euro, the yen and policy. more dig into this and with our strategist mark cranfield. on the fed and the dollar are not new. why were they enough to weigh on the green back #-- greenback? >> probably because of the timing really. some of the senior traders are deciding it is safe to take some vacation time. emerging markets have been so volatile. people have been delaying time lloyd from their desks. , liquidity ist less than it would be. he has not said anything particularly new. impact,ally having an particularly on the dollar yen. we are seeing that tending to lead at the moment. it is nothing really sensational, but the timing of it into a fairly liquid market help to make the move. the fact that treasuries are responding, we are seeing a weaker dollar. ramy: we have been watching the five-year breaking below the 2.7% mark, now at 2.69%. >> there are a few key points to watch. if the five-year drops below that level, it will probably driv

that's get the latest with sophie kamaruddin. that we sawc monday out of turkey. hoping this could be put in the past and we could focus more on the china data coming up. sophie: there is a question on whether or not there was an overreaction. when it comes to japan, for example, asset management saying yes. there are limited economic ties between the two. it should not hurt the earnings prospects for japanese companies or hurt the global economy. the stronger yen looking steadier now. you have the earnings outlook. they are looking fairly undervalued. hopping into the terminal to check out this chart. after losing more than 3% in two days, the topix trading at 13 times estimated earnings, and that is the cheapest level since july 2016. that compares to the roughly 17.6 times multiple of the s&p 500. there are still some concerns. remainrs will likely cautious. there will be some panic potentially in the air. ramy: other than turkey, what else could drive market sentiment? sophie: we have data from china that will be key after the slowdown we saw in credit growth

. >> i am sophie kamaruddin. we are counting down to the debut of china power

sophie kamaruddin.ares on the way up. 1.1% last time i checked after its parent concerned a tie up with heineken. it is a deal worth $3 billion u.s. bloomberg editor m o'brien is in beijing. tell us about this. toeholdineken gaining a in the chinese beer market, the world's fastest-growing, and the second-biggest and fastest-growing for premium brewers. it is not a cakewalk here in the beer market of china. you have a sort of fight between the big beer giants. ushedser-busch has p down prices and made a competitive market. they will have challenges coming in here and seeking a told. rishaad: what does it materially emma?here ultimately, a francine: they are get -- emma: they are gaining a 40% stake in china's biggest brewer, so not ends dividend, and it seemed like the pretty good move. it is probably a better decision than coming in alone. goodgain the very best selling snow beer brand in china and a platform to be able to promote their own premium brand, the fastest-growing sector of market.as theer m

. >> thank you so much, sophie kamaruddin.e way, looking at the top stories in the bull market roundup. this is bloomberg. ♪ ♪ >> time now for the battle of the charts. cohosts put their best charts against each other. off withrt things ruth. >> let's bet against the australian dollar. that's my picture today. the chart has quite clearly shown that hedge funds are the most bearish against the australian dollar since november, 2015. the question is obviously why. these are the top three reasons. the first is that the aussie dollar is a natural casualty of the worsening trade war. and we have prices which are tipped to go lower. rates.ng the rba is expected to hold business race for the 23rd straight month and you are seeing old steam ahead with raising interest rates. very negative for the aussie, and if you are in fx trader, you would be playing close attention to this chart. odds are it just got furnished. >> all right, that was a depressing turn when it comes to someone who lives in australia. let's get to his injury. >> hi.