Made the and offload of assets in the united states. We are 30 minutes away from the open in china and hong kong and we are seeing this rally with stocks after the Foundation Day and trade comes back with more optimism overnight and you see the major u. S. Markets back into the positive territory after the selloff we had and we talk about , buturn to volatility there is still a worry about a true recovery. This could just be a shortterm bounce before another low. You have to imagine, based off of that magnitude in the move. You were talking about that and what came to mind is al sunday, they given six inches in front of your face and the numbers will shift to markets, depending on what it is and we saw this and we are coming off of highs with 3 10 of 1 and nobody has really jump and we have the asian we are seeing but it is not gangbusters. Chilled has given a with the extremity of the selloff. Doesnt it always . China. Why it is you can see this running right hong kong time and with thisin the index specific one and you have the ofader view to get a sense the u. S. Futures with what that rally andthe equity we see the session with the hang you see the gap down and that spike in the volumes and you are watching isse from last week and it at that level and we will get that indicator. And there is aey Risk Appetite we get and we will see a spike. We are seeing some relative calm returned to the markets after the selloff and the nurse have not studied yet. The year the bond market will resume in the days ahead. With mark interesting wilson joining and saying that and you talk about that rise in the yields and we will see the negative feedback continue. The problem for the markets is the change where the yields have been and there is not a sign of that combing and 80 b in the equity universe has to be nervous. We had the change in the yields and everybody so that is a good news story. What allowed that was the yields going up and coming down and settling down and the market went on rallying and did not worry too much about that. The pop in the yields has yet to settle down and any release this exhaustionmore like rather than recovery. That is capitulation. That is what you are talking about and the volatility will not settle until the yield starts climbing. In the u. S. N curve is neither here nor there as a data point. They took a particular area with wages to set off the global meltdown and people said the inflation was coming and we actually have forecasts for weaker inflation and this raises a risk of the inflation train china gets shut down and that is the biggest economy and stock market and there will be nervous traders. You have volatility. Have a sit. You can get a market rundown with the ongoing commentary and analysis and find out what is in what is affecting your investments. Lets get more from hong kong. A 4ump has offered , cuttingbudget domestic spending and he wants cuts in programs he thinks are wasteful. Additionally, he wants cuts to medicare and other safety net programs. They are pleased with the way they delegation was welcomed at the olympics. The sister extended an invitation to visit for talks in the near future. From where itd was and investors are grappling with the fallout of the Prime Ministers expansionary budget. The expansion was in line with a Bloomberg Survey and the r. B. I. Sees a arise with Government Spending checking in on april 1. In a statement to the hong kong exchange, they 21 they have been forced to send back payments. Global news, 24 hours a day, journalists and analysts. This is bloomberg. Thank you for that. A Record Number of new orleans economicsia correspondent joins us from hong kong and we usually get a egg bank number to start the year. Was this overwhelming . There iss true and usually a lot of lending. Record lending, we have dipped back from the growth like at does not sound lot, but it fits a Bigger Picture that we know of authorities way to slow the growth and we are seeing a shrinkage in the gdp gap that was warned about and the credit is,y remains robust and it but it is tucked into specific areas. We have had this crack down with other regulators and products. Does that mean we have seen rotation over way from the shadow sector into a conventional bank loan . We have seen the growth push back with the arrangements and that is what the regulators want and they want to keep their eyes supportce sheets and the economy that relies on credit and what they are doing is eliminating risk in the going after they shadow Banking Sector that they dont have a handle of the scale on and it seems to be working. This suits what they are trying the murkyaning up parts of the banking system. China do aseen balancing act and we have not seen of the material reduction with growth. Will that change . And yous interesting have to remember the market ambitions and treasury yields and it will go through china and test what they are trying to do without the outright impact it that isted to have and happening with the global backdrop and will hurt Global Sentiment and play into china. Themhere is a feeling of thereng things well and could be challenging circumstances. You for that and we will get more later in the hour. Party has decided to recall the president as president and we have heard reports of intense and they haveit been giving him a couple of days to step down with the south african president having said to refuse the call to resign. Corruption battling allegations and pushing back against the pressure to quit since last year, when he was replaced as a leader and we are seeing weakness with the reluctance of the south african president to resign and we are getting more on this breaking news story. In the meantime, twitter is spreading their wings in asia and we will talk about developing the brand in the region and the markets settling down or taking a breather . A read from investors. Where to from here . This is bloomberg. Bloomberg markets here in sydney. The Hedge Fund Manager says that the risk of a recession rises and that is something that investors are estimating. We want to bring you the head of markets here. Bloomberg is the part of what we are seeing with the rally. Ofre is a low risk recession, but does rate down leo have a point with the arenical looking better and we missing a Bigger Picture of what happens . I should mention that we look at the recession probabilities. Those look low and the fundamentals have lagged. There are times that probabilities are low, but the market goes into a bear market ad it is kind of selffulfilling process. Just because the chance of the recession is low does not mean that we should be complacent. This goes up. Why . Recession the becoming very tight and the excess money growth orb real gdp yields trading above and we arent there yet, but are forecasting when that will happen. It is best to watch. As it is now, the financial conditions are easy enough to not push us into a recession. You said that the correction was coming and you are holding about 30 in cash. This was a shocking correction and you look at the volatility index and the abrupt selloff. That gives us the opportunity to selectively buy back and we are doing it slowly. When you get moves like we have recoverydo get a short and we will go to the fed and there march 9 will be more volatility weakness. Usually, this is a way to build a base before committing heavily. That is what were looking at. All, there is the leverage bond prices gravitating towards cyclical areas like energy and we take some of the profits out and we are putting some of them back in with the emerging market shares and i was impressed with the pickup in the volatility we have seen not affecting prices and that is a great sign. This for equity markets. A hair market . You can never be 100 sure, but it feels like there has not been a contagion. Where the areas the market have been leveraged the and and it was a reversal it wasnt the areas that you usually have before a recession. It was long overdue. If it had corrected earlier before it went parabolic, it wouldnt have been at long. The market is healthy. Thehat have you seen for dollar . It appears to be in the doldrums again. Short on the dollar, you would have expected a balance, but you look at the fundamental side and you look at the u. S. Lessiscal deficits with correlated demand for u. S. Treasuries and outflows for europe. That the u. S. Dollar will remain under pressure until this is high enough to attract the budget deficits and the trend seems to be down. Top withis the volatility climbing until treasury yields stop . Be a good level for yields to come up and bounceback, but you look at this area of strong gdp growth with unemployment and wage growth coming back and infrastructure and i wouldrm expect this to be higher because the gdp bond yields are still below and there is still a long way to go. Always a pleasure. The head of Capital Investors here with us. We will have a partner joining me as we look at the implication of the selloff and if this is a recovery or a bound. This is berg. This is Bloomberg Markets and we are counting down to deal and of the market gets. How are they looking . And see theetter and ippetite coming back neard note that we are not the levels from cup of weeks that and a lot of people will are convinced that the perfect time to come in and this is a drop from about 35 here and we as seeing this down and five a measure. Take a look at the futures here up for there contract and we were looking at withrly decent day at 6 32 3. 15 and itn at new credit. With the break downe a quick of the hang seng index, this gives you the indication of that stuff there and the energy is in play and follows some of the worst proof armors in this space over the last or so stops is really encouraging. All right. We will take that. Up next, dealing with debt and offloading. This is bloomberg. We are counting down to the open in hong kong and they are joining the fray of recovery. Cautious recovery. Stocks are clawing back into neutral or positive territory on the year, after the massive markets arejapanese playing catchup. Containedngs are going into friday with the shutdown for the Lunar New Year there is a week and bit of a natural Circuit Breaker, if you will. Me get started here and there is the headline and the reports were hearing that the president has refused to step down and the weakness in the currency is not quite back and and wegetting a spike can have a look at the open in hong kong and we are up with the ischmark here and manila running higher and taiwan is seeing some gains and we are some recovery, but not a lot of volume. We are approaching chinese new year. This is one of the worsthit markets last week and it opens in about 45 minutes from now. India, of force, is closed this week. The open. As i noted, there was a look at the measure and the volatility pointhere spikes and the is that we are not quite back the price of puts recovering and we will leave that there. So, that is a look at the markets at this time. Yet. T of the woods shares on the mainland plunged the most and regulators might get into the markets, having been asked to boost stock holdings. Trying to see this correction that was deeper in the u. S. Why did we have such a large move for the chinese a 80s . You look at the comments on and youssy account would think this started in america, we know that the Chinese Markets are insulated from the foreign markets. Fact your,the u. S. There is a chinese factor with a lot of concern over the next markets in the chinese getting liquidated and accelerating decline in the markets. We have speculated about the intervention and the reappearance of the national team. Has the government come to port the market . It seems like the policymakers were worried and resources tell us that mutual funds are looking to limit sales and major shareholders are looking to boost their stakes and submit trading plans for the week. So, it looks like they wanted to step in and prop up the market. It seemed like a catch a falling knife to asian polls there was a rebound with these stocks going up and the rebound looks to can sinew. We did see more announcement from the major shareholders boosting stakes and some of them have listened to the regulators. Thank you so much for that. Were look at a potential for state intervention with chinese equities stop lets go to hong kong. The reports from south africa say that the president has been told to resign following the meeting of the executive committee over a series of scandals. He says he is refusing to go. And is expected to be the next president. Embassyunt of the u. S. In beijing has been flooded with stock growth. 10,000 messages after the shanghai composite fell. Use,ges violated terms of but they did not turn off the Comment Section for any post. Bloomberg intelligence says that the cryptocurrency could plunge 90 in the environment of unsustainable supply. To 900. Ould plummet the reserve bank of australia lucy ellis the Unemployment Rate went up as more people look for work. That she and her calling see no reason to change views. The london airport is expected Emergency Services are removing a bomb that dates back to the second world war. The bomb was found during development work. The capital was heavily bombed during the war. Global news powered by journalists and analysts. Age and a group local propertyto developers for 2 billion and they are trying to unwind overseas assets amid the mounting pressures to repay. We have the story from beijing. Andre at the share price investors are feeling the pressure come up some and this is amid the stake with the potential loan release. Bit . E pressure coming up a you would suspect it would be is propertiest it and made ther sold , which indicates pressure they are under and they say they want to softly assets and the first half and they are towards that target with the first quarter. They have these flagship stakes andeutsche bank and hilton we are keeping our eyes on that. Step in the right direction for them, they have a way to go to unwind the investments in the next weeks and months. Is the bond market reacting . The bond isably and is the blued that the yields spikes and bonds and to issue they had to cancel. The analysts that we spoke to said it is unlikely that they will be able to with the pressures they are under and it is difficult for them and will liquidity crunch comes to the fore front now. Progresshey made any with selling assets . It has been high profile and not without controversy. Forhe waldorf was purchased a record price and they got the Strategic Hotel and resource acquisitionsse were made from Blackstone Group blackstonehearing has made moves to start conversations to see if they and we buy back assets have heard about these conversations starting, but not any deals yet. Of course, they held a majority howe in hilton and that is that deal came about. The problem started for them last year with their chairman regulatorsained and went to shore up this and they were told they need to sell off assets and they could sell a been somethings they are looking at. That is certainly tightening. Thank you for the latest on that. Profit, butmade a where are the new products. We will speak to the asia director right here on bloomberg. This is bloomberg. This is bloomberg. Chirptter getting their back. Singapore where we are with the asia had and there was a strong showing with national operations, but there is a strong increase in social media in our part of the world. There was a growth in revenue and a lot of that was contributed by the asia pacific we did very well. Quantify that. Yes. And weamazing momentum returned to Global Growth with quarter andofitable the audience grew in double digits. Internationally, we saw 17 in ah and a contribution significant way. Quantify that. Withrea had strengths business coming out of japan, growthand strong continuing momentum with chinese wepanies going global and and theinternet startup super bowl used as an advertiser to connect with audience. We see the love Growth Driving and it becomes mainstream. What drives the user base and revenue . This is the Fastest Growing market and we see advertisers making resurgence is and this is a hot topic. We had the budget and audiences in india want to connect with the cultural moments and twitter is a platform for them. Live streaming grows phenomenally. How do you monetize that . Announce the partnerships bring this type of sponsorship opportunity to we continue to advertiserss from and it is a great opportunity to associate the brand with premium content and that is distributed ina wide set of audiences asia. Is the audience the driving force with the video events . The millennials will be in for to twitterre more andnd consume more live video and that is their way of life and a core driver for video consumption in asia. Will growth to you anticipate . Year are excited for the and we have cultural moments and are locallyresident championship games important to fifa coming up. Ee for also elections in the region that are a conversation video. And video, video, onot more and we are working meeting demand for online video available and we are experimenting with programmatic in the region and that could continue to play out. Expanding and is what kind of investment are you looking at . They continue to focus on bringing the premium and had Quality Content to the platform moments. Ng relevant in also, continuing to improve the market, introducing twitter into the region and experimenting in indonesia, indonesia, the philippines, and continuing to refine that to do more experimentation around twitter apps and you will see us continue to refine that. Channels and revenue. And hiring. The best kind of problem to solve. We higher in multiple markets and we are excited to bring the best talent to twitter and stay locallyrelevant. Twitter is facing fake accounts and abuse. How is it handling that . Us andty is important to we have a focus on making sure the information quality on the platform is strong and we are aiming to do that in two or and were looking at spam and automated malicious attacks and focus on elevating the quality of content with amazing content. Be . Hat would that partnershipso around video. Thank you. She is the director of asiapacific for twitter. You have a strong following. Ou are a millennial i am a millennial. Thank you. Bloo