Transcripts For BLOOMBERG Bloomberg 20240628

Ripping us off for years like china and many others. It is going to force them to pay us a lot of money, reduce our deficit tremendously and give us a lot of power for other things. Pres. Biden there is more to be done. Workingclass people are still in trouble. I come from scranton, pennsylvania, a household where the kitchen table, if things were not able to be met during the month, it was a problem. The price of eggs, housing, a whole range of things. Thats why am working so hard to make sure i deal with those problems. Yvonne lets check in on market reaction. We did not expect this bait to spur a lot of volatility, but you are seeing movement in the currency space. I think the dollar has been more favorable. What are you watching out for . I think the greenback reaction is quite interesting. While the debate carried on, it pared some of those gains. I will take a deeper dive in a bit. It is interesting as we watch out for the reaction in the chinese currency. We actually saw it starting the morning session at 730. 65. This was when the debate had not yet begun. If anything, it is strengthening since we got that progress on the debate. It seems like investors were bracing for a bit more of hawkishness towards china. Maybe there is a bit of relief. It could also be these domestic chinese factors at play. We saw the pboc with a modest pushback via the yuan fix. Onshore yuan moving toward the 726 level. Across the rest of the asset classes, we are seeing stock markets tracking the gains on wall street overnight. This was as investors parsed the data coming through. It was a mixed bag on the u. S. Economy, that revised downwards personal spending. We got some of these weak job numbers. Stocks are doing well. We are keeping an eye on the topix. It might close at 34 your highs. Taking a deeper look at the dollar. Against this backdrop of the u. S. President ial debate, it is really about those pc numbers out of the u. S. Tonight pce numbers out of the u. S. Tonight. The first half of the year was dominated by the fed risk. The second half, it might be that as well as the u. S. President ial election to consider. Also take a look at how Cryptocurrency Bitcoin was faring during the debate. We saw that spike paring some of the gains. It is not that easy to parse why exactly the cryptocurrency fared the way it did, but trump has been making some overtures towards the industry. He is seen as someone as perhaps more friendly to the Digital Asset than joe biden. Yvonne avril, thanks for the update. Lets get to our political news director Jodi Schneider from washington. People are debating who won the debate. There was not a lot of policy discussion tonight. What do you think characterized each mans performance . Jodi it really was not a policy driven debate at all. Donald trump came out swinging and clearly was going to be attacking joe biden on everything from the border to inflation, attacked his family, attacked his son. Joe biden was on the ropes almost the entire debate. He stumbled a lot. He froze at one point before the camera. He had some faltering statements throughout. On occasion he kind of hit back. His voice was faltering some was faltering. Some in the campaign say he has a cold. Certainly this is not going to help joe biden in terms of the concerns expressed by many, and certainly a talking point for republicans, about his age at 81 years old, the oldest president , and his fitness to serve. There will be a lot of talk about that. That is what we are seeing on social media. On trumps part, he came out and sometimes was coherent about policy, but other times was rambling when asked about the opioid crisis, he started talking about a reporter held by the russians in jail. A lot of times he seemed to be searching for what he was saying, except that he was the one who was attacking strongly and joe biden was very much on the defensive in this debate. Yvonne there seemed to be a stark contrast in who brought their agame tonight. How much do you think bidens performance could hurt him, especially concerns especially given concerns about his age . Jodi he really needed to show tonight that he was strong, that these concerns some have said the republicans were taking various images and putting them together to make him look weak. But he came out for an hour and a half tonight, just did look weak. At times he seemed to not know what he was saying. Other times, he did seem like his old self. At one point he told donald trump he is a liar and you just continue to lie. He tried to make some policy statements, but it was overshadowed by performance. That will be the real concern here. Interestingly our correspondent in atlanta was looking for some people, democrats to interview afterward in the spin room, and there were very few. Our Atlanta Bureau chief said there were not Many Democrats there. You are wondering what their message is going to be, how they will put their spin on this tomorrow. Yvonne can you mention more a few takeaways in terms of the topics discussed . I dont think we heard too much when it came to trade and the like with china in particular here. Jodi right, we heard about china. Really only donald trump criticized the current president s policies on china and said he was weak on china. We did not hear a lot of prescriptions. We did not hear a lot of policy prescriptions much at all. Both men criticizing the other very harshly, but there did not really seem to be for instance, where do you go on trade . What should be the policy on asia trade . That kind of thing did not get much discussion. There was a little bit of talk about joe biden was trying to defend his record on the economy, which has been something he has struggled with in this Campaign Given that inflation remains high. There really was not if you were looking for both men to come up pwith statements come up with their policy priorities, you did not hear that in this debate tonight. Yvonne Jodi Schneider joining us out of d. C. This evening. Lets discuss more of the u. S. Election and markets overall with the cohead of asia fixed income at Pine Ridge Investments. Always great to have you on the program. Obviously we wrapped up the first president ial debate. Are you getting any clues in the market on how the impact is going to be once november comes around . Omar i think trump is ahead in terms of the predictions at this point, and perhaps this debate reinforced that, at least that is the markets perception. I think the focal points from the market perspective is what will happen when it comes to the fiscal side, which is becoming more of a focal point for the markets increasingly, particularly given the fed seems to be proceeding very cautiously. So fiscal will be more prominent. Immigration might lead to a tighter job market, which is inflationary. I think you can see some sort of reaction from that perspective. I think it is still early days but these would be the two areas the market is focusing on. Yvonne you mentioned one of the key market risks is sovereign risk is creeping in. Is that what you are talking about, these fiscal concerns after this election . What do you think will be the big driver next year, deficits, or the debate about inflation or growth . Omar that is a good question. Really, Monetary Policy will be the major driver when it comes to the treasury, markets, the safe haven bond markets, as well as the currency markets. But, in the absence of strong moves, particularly from the fed, the absence of the fed cutting aggressively, which is a safe assumption at this point in the sense that we will see one or two cuts this year. It remains to be seen what will happen next year. I think the market will increasingly be focused on how much fiscal space there is in the u. S. And other places. That really is deteriorating. I think it will play a larger role in terms of how the treasuries and other safe haven markets trade, particularly given that probably the fed will be engaged in more calibration as opposed to starting an aggressive cutting cycle at this point. Yvonne if we are going to start worrying about budget outlooks for the u. S. , supply of u. S. Treasuries, does that force you to lean more towards the credit space . Omar yeah, i think one of the big things that has happened at a very high level, but increasingly in full display, is there has been migration from Consumer Debt and corporate debt into the sovereign side. That really accelerated after the financial crisis. I think the markets will be increasingly focused on what the fiscal space is. We see it to a certain extent in the u. S. And other places, particularly in europe. Frankly, funding sovereign debt at 0 or negative is different from funding at 5 . I think this is a slowmoving phenomenon, but i think it is one the market will be increasingly focused on. Yvonne you mentioned there is lack of clarity on the fed. That is weighing on asian currencies. The yen weakness is not helping as well. Does that force you to look more on dollar assets for the back half . I know you came out with your new outlook for 2024. Omar i think dollar will continue to be strong. I have set it on your show a couple times ago said it on your show a couple times ago, that the yen will continue to be weak. There is nothing at this point stopping the yen from remaining week. May be the bulk of the weakness is behind us, but i think it will be weak. I dont think the bank of japan will be engaged in aggressive hiking. I think the yen will continue to be weak. More broadly for asian global currencies, i think the Asian Central banks broadly are very reluctant to cut before the fed does. I think a few of them are itching to go, korea and others, but i think they are concerned about the stability of their currency, and you saw it in places like indonesia, for instance. We are erring more toward the dollar side than asian local currencies at this point. We have had that position for a while and will continue to have it. Yvonne what is your take on highyield also . It looks like we are avoiding this hard landing scenario in the u. S. Everyone ive talked to on the show talks about this export growth and the pmis around the world that are turning more positive. Overall does that lead you to take more risks, particularly in the junk bond market . Omar not really. I think more on the selective cases. If you talk about the asia highyield market, there are segments we are disengaged in and think they will continue to be challenged. Others where we see some opportunities. Outside of asia, i think the market is generally expensive. This has been the case for a while and probably will continue to be the case because the corporate Balance Sheets continue to be holding up reasonably well. We are not seeing default rates going up in any meaningful way anywhere actually. Yes, selectively, but i would not make a broad statement saying we are going overweight on highyield at this point. Yvonne more of omar slim in the next block. Pine ridge investments. Some lines crossing from president xi. This is from a speech at a meeting commemorating the 70th anniversary of the publication of the five principles of peaceful coexistence. That is a mouthful. They are talking about reforms. China planning major measures to further deepen reform and imports from developing nations to exceed 8 trillion renminbi until 2030. Xi says china continues to expand, opening up. Some lines crossing from the president. We did get the official dates for that plenum that has been delayed for months, july 15 to 18 in beijing, looking to be quite a catalyst for markets as well. This coming at a time where we saw the msci in correction territory. Also the hang seng in similar measures, falling some 10 from the high in may. Still ahead this hour, indian bonds in focus as the nation debuts in j. P. Morgans em bond index. We discussed the risks and discuss the risks and opportunities with jennifer ksuuma a little bit with Jennifer Kusuma a little bit later on. This is bloomberg. 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We are expecting the Bloomberg Index inclusion will happen and also there will be more confidence from the Global Investors once they have seen and experienced india. I think this is going to have a rippling effect. Im not even going to say months. Yvonne some of our guests speaking about the inclusion of Indian Government bonds in j. P. Morgans em bond index. Today is the first day. We will get to how things opened up at the bottom of this hour. This inclusion will open up indias 1. 7 trillion dollars sovereign bond market to international investors. Global funds have been piling in, pouring almost 10 billion into index eligible bonds since j. P. Morgans announcement in september. Goldman sachs puts that number higher, predicting that Global Investment into india debt could go up by as much as 40 billion. And you look at this chart, goes to show why interest as indian bonds have far outperformed global peers since at least 2022. Foreign ownership still remains quite low around 2 . Some banks have said that could easily double, just given this inclusion. Lets bring back omar slim, cohead of asia fixed income at Pine Ridge Investments. People talk about the benefits of getting into this highgrowth story in india. What do you think this means for rates, the currency and the economy . Omar i think it is a big day for the offshore india bond market. This has been announced a few months ago, and today it is taking place. I think it is positive for india. India has generally been a good story for the past few years, and that is going to reinforce it. To be fair to the indian regulators and policymakers, they have been trying to actively facilitate access to the bond markets, which as you just alluded to in your comments, it is a very large and interesting market. I think it is fair to expect that Foreign Ownership will increase. First driven by some of the fast flows, which will be relatively substantial. I think this is a multi story, multiyear story in the sense that it puts india more firmly and the global more market allocations in the global bond market allocations and it adds to the positivity around the india story. Yvonne there is still some teething issues when it comes to those tax hurdles. You can be taxed up to 20 for interest on for interest earned on these bonds. Modis government emerged a bit weaker after this election recently. What are the risks of investing into this market . Omar i would say there are a few risks. Some are on the operational side for the tax obstacles, which you alluded to. I think these tend to historically have been relatively large and is dissuading some investors for being active in this market. There i think. There has been some progress. Still some progress needs to be done. On a more macrolevel, i think the main risk is that there was a lot baked in the, india story whether you are looking at the stock market or bond market. India has been dulling the market for some time. I think given the Political Landscape after the elections, and you are right about that, the risk is that we need to continue to see reforms, we need to continue to see policy actions and actions being taken. Otherwise that positivity that is baked in my start to fade baked in might start to fade. Yvonne you look at the em bond landscape, how has it changed with india maybe taking a bigger pie . Who loses out . Are you expecting other markets to see a lot of outflows given this bond inclusion out of india . Omar yeah, some of the other countries will eventually with essentially have smaller weight. Thailand is one, for instance. I dont think it is a major issue in the sense that what we have been seeing, and it is particularly true for the asian currency bond market, those markets have depth, and the local Investor Base for quite a few of those markets, malaysia, thailand, to a certain extent philippines, singapore, son o so on, the Investor Base locally is quite strong. What we see with the Investor Base which is less strong, indonesia, there could be a bit of substitution or displacement effect. That is more on a casebycase study. For southeast asia, these countries continue to have generally deep markets with some exceptions. Yvonne omar, great to have you. Have a great weekend. Omar slim from Pine Ridge Investments out of singapore. Covering indias bond inclusion. Bloomberg is hosting a live webinar right now. If you are a terminal user, you can watch right now on live. Plenty more ahead. This is bloomberg. To me, harlem is home. But home is also your body. 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Certainly does build speculation at what could be addressed at the plenum in mid july which has been confirmed. We talked about yesterday msci china entering into a correction. Hang seng index a similar fate this morning. Hstech is lower by 0. 7 . You are not getting report not getting support from large caps in china. It is all about the fed pc inflation gauge now that we have this pce inflation gauge now that we have this president ial debate on the back. We did see the dollar a little bit stronger before paring back. Treasury yields tick a little bit higher after here in the asian session. We are back to 116 for. Dollaryen729 for dollar china this morning. This is bloomberg. Yvonne as we have been focused on this hour, india bonds make their debut on jp morgans em bond index today. Avril has been looking at this. A big day for india. What might this mean for the whole em bond universe now . Avril absolutely, big day, Long Time Coming after the september announcement by j. P. Morgan. I think we have seen inflows of 10 billion into indias bond market, so this has so this is a big moment. To your question about what this means for other em markets, if you look at where things will be come march next year, where india will have a waiting towards 10 , this means it will come ultimately at the expense of these other ems the likes of south africa, poland, thailand. They will see their weightings come down. This could prompt some outflows and the bond markets there. The other thing we are keeping a close watch on is whether this really prompts inflows into the india bond markets. That is the base case. You take in mind chinas playbook and how expectations after the ftse russell inclusion was like 140 billion of inflows. About 1 10 of that or even less has materialized. Lets look at what we are seeing at the open of trading for bonds in india as well as the currency. A lot of this i think has already been priced in. We have seen how it Indian Markets have been gaining ground. The bonds in anticipation of this inclusion. Of course, backing all this is the Fiscal Consolidation, indias growth story. The rupee has been pretty stable, helped by the rbi. All these positive factors for indias bond market, seeing that further tick up in the fiveyear and 10 year. Cycle back on the global news powered by more than 2700 journalists and analysts in more than 120 countries. On the two year. Ruppe pulling away from that 83. 43 level. Yvonne just confirming now that those bonds have been included in that j. P. Morgan em bond index. We will continue to track this through the rest of the hour as well. Avril, stick around. We will bring our next guest. Jennifer kusuma, senior asia rates strategist at anz. Always great to have you. Can you tell us how significant this moment is for india right now, and how do you compare it to em bond inclusions of the past . Jennifer this is a very big step for indias market development. We do think index inclusion, especially a key index like what we saw today, is an important step in the deepening of the domestic markets. In the near term, yes, a lot of inflows have come in, many Foreign Investors have opposition in the market. What an inclusion like this would mean is a wider sset of Foreign Investors set of Foreign Investors would be invited to participate. We could see more broadening in the Investor Base. In the long term i would argue this could open up to more inclusions into other key global bond indices in the mediumterm. This is very exciting and a positive step for the indian bond markets from the investor perspective. The comparison we may have to today, Government Bond inclusions between 2019 and up until now, the weaker inclusion like avril mentioned earlier. I would highlight that in 2019 to 2022, we did see a big amount of inflows coming into the market. I would say the estimate would be about 240 billion on a net basis into the market. Not too far off. Estimates in full of 300 billion with inclusion. Inclusion is still ongoing right now until september 2024. The implication itself during the early days, 2019 to 2022, that is a good three years run. Foreign ownership rose from 7. 5 to above 11 . That is not all. There were other inflows into agency bonds. I would say the net impact is positive, but in the longer term Market Dynamics and outlooks and other Global Factors would determine whether Foreign Investors continue to come in or trade relative to other markets. Ultimately what do you think this might mean for government borrowing costs . Do they come down over time . Especially as we look at the election, what will this mean for modi and spending plans, Fiscal Consolidation . Jennifer there have been studies over the set of data that foreign participation tends to lower government funding borrowing costs. But in indias case, i would say the market has largely priced in a lot of the good news. All the factors you mentioned in the preview of this section. In the very near term, i would expect a more stable trading environment. The 10 year yields could edge toward 6. 8 . Our own assumption is by the end of the year, the rbi may have the window to cut rates one time in december, and further rate cuts in 2025 could guide yields lower. For now, around 7 , down to 6. 8 seems to be good levels for now, especially considering that the rbi is keeping a hawkish Monetary Policy stance. Yvonne how do you think investors should look at the risks in this market . Obviously the old concerns used to be about high oil prices, runaway inflation, also fiscal deficit concerns. Are those risks we still need to deal with, or are there new risks we need to look at in this market . Jennifer those are the main risks, but i would say to a lesser extent we have to be vigilant, especially on the inflation, volatility. On the fiscal stability, i would say this has been a concern since the election results. Our own view is we do think the government would stay on a Fiscal Consolidation path towards a budget deficit of 4. 5 of gdp by the end of fy26. This is constitutionally mandated by the fiscal responsibility and management deal. We dont think there will be much room for the government to deviate, or willingness to deviate from this. On the current account, there generally tends to be driven by oil demand and oil prices. Therefore whenever oil prices rises, the current account and inr tend to be under pressure. One Key Development for india is a device for exports. It is a structural in nature. To some extent it will mitigate the volatility we are seeing, especially in the goods deficit. Last on inflation, this is more complicated. In the near term, we are encouraged by the fall ini inflation. That means the rbis Monetary Policy stance has been effective. However monsoons remain a key risk in the near term. , the spatial we just view should the amount of rainfall we will see between june and september will depend on whether the room for rate cuts will be open in q4. In the longterm, for indias case, a volatile component would be a key thing to watch. Jennifer jennifer, really hard to sometimes predict the weather and how that plays out in inflation in india. I want to get your sense, does this inclusion perhaps also, at the expense of these other ems . We talked about how we could see a bit of outflow in thailand, but particularly for other asia ems such as indonesia that sees a bit of concerns about lax fiscal policy. Jennifer i would separate this into two parts. The first is the structural agreement in the index weight itself. On the back of indias inclusion, only malaysia and thailand in asia would see a reduction in weight, roughly 1 to 2 , equating 2 billion to 4 billion in total. That is not large and respect to these markets in respect to these markets. In that weight reduction, i dont think it will be an issue. More interestingly i think is asia is increasingly looking at idiosyncrasies in the region. And this will to an extent determine the outlook of the market and what investors choose to do in terms of having their exposure. You mentioned indonesia. I would say at this point indonesian local markets have been hit on two levels. On the first it is the delay of the u. S. Rate cutting cycle. F economies for economies like indonesia, this is really bad news. The second is rising uncertainties on the policy outlook, especially on the fiscal policy outlook with the upcoming government. It is being weighed down, sentiment, by this too. Yvonne i want to get to the fed discussion because it seems like a lot of em currencies are more sensitive to the yield gaps with the u. S. The rupee in india has been quite resilient in the face of that macro backdrop. Do you think the rba can keep the currency stable rbi can keep the currency stable . Jennifer very well. That is our expectation, that they are not deviating from thei r fx management style. We expect the rupee to be trading relatively quite stable. We have a forecast of 83 by the end of the year and 82 by the end of 2025. One important element in india is the fx reserves of the are b. I. Is quite significant of the rbi is quite significant and they plan to absorb most of the bond and floats bond inflows into the fx reserves. If we look at the fx adequacy ratio, comparing to the potential sources of outflows in a payment crisis time. Indias ratio is 175, way above the recommended range of 100 to 125. So i think indias excellent position is one bright spot in the economy. The central bank does have a significant tool to defend the currency. Yvonne Jennifer Kusuma, senior asia rates strategist. Thank you for joining in on the discussion as well. We have some news to break when it comes to airtel, they are raising the indian mobile plan prices after what we heard from reliance. That is why you are seeing the stock do this. We are up some 4 as markets open up in india. We will continue that discussion coming up. Plenty more ahead. This is. Bloomberg this is bloomberg. Yvonne during the president ial Campaign Debate in atlanta earlier, former President Trump claimed is a strategy to enact a 10 acrosstheboard tariff on imports would reduce u. S. Deficits and check countries like china. President biden said that plan would hurt americans. Mr. Trump we now have the largest deficit under this guy. We have the largest deficit with china. He gets paid by china. He is a manchurian candidate. He gets money from china, so i think hes afraid to deal with them or something. He never took out my tariffs because we bring in so much money. He never took them away. He cant because it is too much money. We saved our Steel Industries and there is more to come. Pres. Biden 10 tariffs on everything coming into the country. You know what economists say . That will cost the average american 2500 a year more, because they will have to pay the difference in food and all the things that are very important. Yvonne some comments when it comes to tariffs, Foreign Policy that president ial debate that wrapped up about an hour ago in atlanta. Lets get to our china correspondent in the studio for some analysis. I thought we would hear more about china, but we didnt get a lot of the substance in this debate. How do you see the two candidates defining themselves . Tariffs was in focus. They did not talk specifically about china a lot, but you heard trump saying he would impose 10 tariffs on all goods coming into the country. He denied that would cause any inflation. Instead he says it would cause all those countries ripping the u. S. Off to give them a lot of money and reduce the trade deficit, paraphrasing what he said of course. The Biden Administration been defining themselves against this opposition by saying their tariffs have been very targeted, if you look at the recent tariffs on evs, medical devices, it only constitutes 18 billion worth of goods between china and the u. S. , which is a small overall which is small overall. Analysts have also said trump may be more bark than bite. He may threaten the 60 tariffs, but when it does hit inflation, he may use this as a form of leverage over china to extract some concession in exchange to not reduce to not impose those tariffs. Yvonne there is also the topic of immigration that came up a lot. How do the two candidates differ when it comes to immigration policy . Minmin they spent a lot of time on immigration, although they did not explicitly target chinese immigrants, but that has been a campaign issue. Last year the u. S. Arrested over 37,000 chinese immigrants, which is a tenfold increase from the previous year. And trump has of course said these immigrants are taking away american jobs, that they are wiping out social security, but biden of course defending his policy, saying his policy so far has led to a 40 decline in illegal immigrants. The Biden Administration has been trying to offer some form of protection for undocumented migrants that have been in the u. S. For a long time, especially those that have shown to have established careers and families. Trump said he would be deporting millions of them if he comes into power. Yvonne its interesting what we heard about ukraine, the real the israelihamas war. Trump called biden an manchurian candidate paid by china. No evidence on that. Overall, china goes brought into the discussion about how they look at the ukraine situation too. Minmin you heard trump kept up this stream of criticism against president biden. He brought up bidens mistake in afghanistan, saying the withdrawal of troops there was the most embarrassing moment in american history. When it comes to the hamas war, he did not directly answer the question about whether he would support an independent state of palestine. Instead he says the u. S. Should allow israel to continue its attack and finish their jobs. When it comes to ukraine, he says he will end that conflict quickly as president elect before he steps into office. He says the u. S. Is spending way too much money with aid to ukraine. President biden saying it is critically important for the u. S. To maintain its allies with other countries. He says one must be aware of putins broader ambitions beyond ukraine. He may go after other Eastern European countries as well. Yvonne our china correspondent with more analysis on what came out from the u. S. President ial debate, when it comes to china of course. The u. S. Ambassador to china says beijing has misjudged the impact of its support for russias war in ukraine. He told us china is not remaining neutral in the conflict and further sanctions are possible. We put a red line in front of the chinese to years ago just after the russian invasion of ukraine. We asked the Chinese Government not to extend lethal assistance to russia. We dont believe the government has done that. What has happened is the government of china has permitted a considerable number of chinese firms to sell dual use technology into the russian Industrial Base so that defense Industrial Base is far stronger now than at the beginning of the war. We are strongly opposed to this. Putin has launched a brutal war against ukraines government and civilians and it ought to stop. Chinese say they are neutral in this war. They are not neutral. The actions of the government in allowing chinese firms to sell these technologies is very troubling. It is damaging to the effort to end the war. China is not exhibiting the behavior of a neutral country. It is a very important difference we have. We have complained to the chinese about this at great length, at very senior levels. We have begun to sanction individual Chinese Companies involved in this. We will continue to do that because we have not seen any change in the position of the government of china to help the rest of the world, and certainly europe and the United States and this war, and make sure putin can no longer rain terror on ukrainian civilians. As ambassador in beijing, how do you think china is reacting to that summit between kim jongun and Vladimir Putin . The assumption is hes looking for support, for perhaps arms. He also went to vietnam. How does this escalate the situation . The summit was troubling because putin wants Ballistic Missiles and other technology from north korea to prosecute the war in ukraine. And of course putin wants to sell energy to north korea as well. I cannot speak for the government of china, but you did see a fairly muted reaction to it. You have to ask what they think of the situation. Certainly the efforts of russia and north korea, and in some cases china and iran, that constitutes a major threat to the democracies of the world. We are not happy with what the north koreans have done, what the iranians have done to support the russian war effort. Yvonne that was the u. S. Ambassador to china speaking with our chief north asia correspondent stephen engle. Now lets take on Indian Markets and see how things are shaping up. Looks like equity markets are doing well and following what we see across the region. The rupee is gaining a bit of ground. It is the official first day of indian bonds being included in the jp morgan em bond index. We see a lot of inflows heading into this day. A mixed picture right now. You are seeing a bit of a pause in that buying. Yields are taking higher. The two year yield as well. Much Much Movement not Much Movement when it comes to the five and 10 year. We have plenty more ahead. This is bloomberg. Yvonne we have some breaking news when it comes to india. The Delhi Airport now, after a terminal roof collapsed. We are hearing there might be some injuries as well as casualties. We will watch that closely. The Delhi Airport has suspended flights. What happened was may be heavy rain that collapsed that roof today. We are watching closely. Terminal one, temporarily suspended all departures from that terminal after the canopy did collapse. We are hearing airlines like indigo, spicejet, also have delayed or canceled some flights until 2 00 p. M. Local time. Some other stories we are following. Japan is reportedly getting a new currency chief. The yen trades near its weakest in almost four decades. Mimura has been appointed the new vice finance minister for international affairs. The move is part of a normal personnel rotation and not seen as a change of direction for japans broad currency policies. Polls open later friday in irans president ial election to select the replacement for ebrahim raisi, who was killed in a helicopter crash. Two of the most conservative candidates have stepped aside and strengthening the chances of two other hardliners. Four men are in contention for the presidency, including the only reformist candidate. A lot of Political Risk heading into the weekend, not just when it comes to there, but france will be the key. First round of voting kicks off this weekend. Certainly is going to be a highstakes vote in decades. Also coming ahead, china pmi numbers on sunday. Unlikely to see a lot of movement in those numbers, but could dictate how markets react on monday. You look at how the French Election is playing out so far across markets. Oat and bund futures, mixed so far, but when it comes to the spreads, we are talking about 82 is points between the two, oat and bund spreads. Still not quite seeing a full recovery when it comes to the election risk in these bond markets. That is it from us at Bloomberg Markets asia. Have a great weekend. How . A. I. impressed ay i like it who wants to come see the future . get your Business Online in minutes with godaddy airo starting a business is never easy, but starting it eight months pregnant. Thats a different story. I couldnt slow down. We were starting a business from the ground up. People were showing up left and right. And so did our business needs. The chase ink card made it easy. When you go for Something Big like this, your kids see that. And they believe they can do the same. 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