Sectors in the region and everything is up with everything, gold and energy on the back of the pullback, not just oil but gold prices. Up 1 across the region. Tech up 2 . I hope you went long this morning. It sets us up quite nicely. Ended. Over and the nifty futures are up to we regained a 12,000 level. We have set the basis pointed out earlier from him by which we will get back to when we get this market up and running. You are seeing strength in the currency. We will get you the open in the rupee. All things equal, very good session for risk affects this thursday. Su keenan is up. Su we start with the latest Economic Data out of china, consumer inflation studied in inember steadied december. The price index rose 4. 5 last month, smaller following a similar gain from november. The Producer Price stabilized. Novembers than decline. Survey shows Global Growth will pick up modestly between this year and next. This despite the easing of trade tensions. Will be marginal acceleration, given the stabilization of a handful of emerging economies. The bank said Global Growth conditions remain fragile. Nissanghosn, the top of boss is facing criticism in japan after attacking the countrys justice system. Him, asans treatment of highly well attended press conference after escaping to lebanon. Betrayedaid he feels by carlos ghosn, adding the only reason he ran away is because he was afraid of being found guilty. The Justice Minister said carlos ghosn should have respected createe law rather than fleeing abroad. Nationality,what he should respect the law of the country where he worked and deal with legal procedures with legitimate evidence to prove he is innocent. Su and pressure in india is afterng on Narendra Modi people took part in a nationwide strike to protest the governments economic policies. Transport and Banking Services were disrupted as workers took part in the action, organized by major trade unions. India has the slowest growth since 2009. Global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. Mr. Trump iran appears to be standing down which is a good thing for all parties concerned and a very good thing for the world. No american or iraqi lives were lost. The United States will immediately impose additional punishing economic sanctions on the iranian regime. These powerful sanctions will remain until i ran changes in behavior. Haslinda President Trump appears to be ratcheting down sanctions with tensions with iran, but leaving the diplomatic opening. Lets get more from jodi schneider. After the retaliatory strike by iran, does it look like President Trumps strike against the general is paying off and the u. S. Will have the upper hand . Looks that way now. There were no lives lost in the retaliatory measure and it seems less worse than it could have been. President trump is taking a victory lap and saying we have the upper hand. Looks like the u. S. Does in that confrontation so far at this point. Has been been iran crippled by those years of sanctions and if the economy is in very tough shape. It cannot afford a war. That doesnt mean it doesnt come back with something else. The the u. S. Taking out the general, looks like they have reset the relationship with iran for the moment. Your saying the attacks from iran were the first you are saying the attacks from iran were the first straw . That is the question, are there more to come . They talked of 13 different encounters. They had the rhetoric at the funeral of the general was very tough. Probably have the biggest store of shortrange Ballistic Missiles in that region. There could be other things brewing. No one knows at this point. If you look at the past few days, the u. S. Seems to be giving a sigh of relief and saying they dont want to escalate. That was one of the more important things we heard from iran after the airstrike, that they didnt want to escalate rather. Further. David lets hope we can put the story behind us. Senior International Editor joining us on set to talk about the market implications and whether risk premium has been properly priced in. We have the investment director happy new year. Expecting a quiet start but that is not what we got. It has quickly escalated but also quickly come down. I hope likewise as you said, something to put behind us. Dont think it was in anybodys interest, the u. S. , iran or the world, which has enough other issues. The trade deal has not been signed yet. There is optimism. Nothing is settled. David can i put this risk behind us . Martin for the time eating. Analysts weresome pointing out, policymakers in the u. S. Have been aggressive for some time. They are trying to stir up some tensions in the geopolitical arena. You cant rule out there is a flareup coming again. Diversified,on the not to shorten measures you take. The s p keeps testing new highs. You cant help but feel that with the equities, investors are complacent. Very little risk is in compared to the bond market. Martin that is a good point. Also coming back to what i just said a second ago, you have to watch out not just for the create the geopolitical risk. You have the trade war and another thing i believe, a lot of investors nowadays tend to overlook to some extent, the risk of high global sovereign debt. We had one report by the world bank talking about the sharp rise of debt in countries. All of this means you have to be prepared fore potential market adjustments, volatility. That said, there isnt any one asset that is full proof, totally say that gives study returns. Balancing different types of risks and having a sensible portfolio in our view of different types of attractive assets and different Asset Classes. When you look at equities, we u. S. Got 10 trillion dollars. Relative to equities when you are looking at the equity yield in some countries that are not overly popular, you can see much higher yield potential in the equity markets. Haidi what do you do with gold . Given the fact geopolitics will be a key factor in 2020 . There are a number of ways to protect oneself. There is not any one particular asset class that is foolproof. There are different types of risks with different assets. You talk about safe haven assets, haslinda would you use gold as a hedge . Martin some locations are forward and different Asset Classes like equities and interest can make sense from diversification point of view. But that applies to any other year, doesnt it, giving a diversified housekeeping of a diverse doesnt it, keeping a diversified portfolio . Cycle andy late looking at the rates close to zero, what would be the proper risk allocation given even if you are a longer Term Investor . Obviously you are looking for rather than looking at the past few years and diversify. What are two points i would like that areopportunities striking to me, china is relatively stable and a lot of uncertainty in this world and valuations are low compared to other markets. I think you can find really. Ttractive valuations one more side point i like to make, when you are looking at a shares andke others, it is important to not overpay. Yesterday an article on bloomberg said this was five times more david a financial stock. Martin i am just saying for an International Manager it is important not to overpay for the same stock. In hong kong you have good opportunities. In another second point for global markets, it is talked about valuations, u. S. Being higher. Say always open to unpopular markets. People like to buy what is a good story. U. S. Equity markets, they compared very high exposure and popular ones. But always be open to unpopular markets as well. That has been an interesting study done by the London School of business researchers, fighting there is a negative correlation between Economic Growth and stockmarket returns. So those close to the hong kong, u. K. Avoided it. They are among the least popular work is but have good valuations for dividends. That is an attractive one. , spreadings around it and having a good proportion your asset allocated for it is another important one because rising inflation, very good point. Rising inflation think now is one of the most underestimated risks. Alan greenspan gave an interview in march 2019 saying rising budget deficits lead to he reiterated that warning last month saying it is inevitable, going to rise. U. S. Congressional office is expected to see the debt at one point true trillion dollars. David thank you so much. Our he is the investment director. Our interview with the bank of bangkok president. We will take that live and talk about the takeover of indonesias bank. Also coming up and sticking with the panel, the bank of thailand governor sat down with us. He is not happy about the strong currents. This is bloomberg. Back to theme program. We are going to get you guys updated on what happened almost literally this time yesterday, the boeing crash in iran. According to people familiar with what is going on, the u. S. Investigators are weighing the legal and safety issues of this request. It is essentially iran is, iran may seek u. S. Help in this through e. U. Entreaty. They may seek u. S. Health and u. S. Investigators for their part are weighing the legal and safety issues of the request. To put that in simple english, getting to the bottom of what happened and doing it without speculation is complicated because of what is going on between the u. S. And iran. Doesnt help it was appalling claim that crashed a boeing plane that crashed. Lot to takeere is a you back to. The bank of thailand is preparing to ease restrictions on capital outflows further this year as it tries to stem the rising baht. They say there is no line in the sand but that the currencys strength is not in line with economic fundamentals. , it is nothingay like the fundamentals of the thai economy. Toobaht has appreciated much. There were factors that led to financial flows from outside thailand into thailand when there were changes in Economic Conditions and the Global Financial markets. For instance when there was a change of monetary policy, economy and that contribute to a more overflow from large economies into emerging market economies. And because of thailands strength, people might say it has been the best performing currency in thailand. We are not happy about it. When the currency is not moving , weine with the fundamental should not seeing it as best performing. It is not performing in the way people like. You talked about how it is not reflecting fundamentals for what level would it be good at . Fundamentals. What level would it be good at fodor dynamics. At the we compare the movements with regional currencies. Currencies of other emerging markets that economic recovery. The bank said you would defend the line in the sand. He is not speaking on behalf of the bank of thailand. He is a member. That might be his view. There is no line in the sand . No. We have the Exchange Rate and look at different factors contributing to the path. Haslinda would you allow the baht to go beyond 30 . Factorou look at the structure everything to the movement, after emergingmarket currencies, it has been largely value of the currencies, the u. S. Dollar, the value of great britain, the eurozone and have contributed to the exchangeafter rate of emerging markets. We have to look at the whole of factors contributing. We see the movement is too fast, we are not happy about it. If we are seeing the movements of other currencies in the , trading partners and competitors, we would be concerned about it. The movement as a first opposed to a fixed level. You talked about speculative inflows. Are you prepared to implement measures like a holding time to prevent this . There could be many measures we can keep those measures on the table. Haslinda what are some of the measures . What are in the toolkit . When we know, we will let you know. Haslinda that is on the table. You recently implemented measures to allow the easing of capital outflows. Are you prepared to do more . Yes. That is one thing we will do more in 2020. Haslinda the bank of thailand governor, speaking to me here in bangkok. Much more to come. Stay with us. This is bloomberg. David welcome back to the program. A quick check of business flash headlines. Bed bath beyond slumping as much as 25 after they were withdrawn Financial Guidance following another quarter of declining sales. Fell moretore sales than 8 in the 11th quarter. It was described as unsatisfactory, saying it underscores the imperative for change. Online Home Improvement platform, chinas version of craigslist, is preparing for a u. S. Ipo. Completing its target fundraising for ipo. It was valued up to 2 billion. 58 offers a wide range of services from flower delivery to home cleaning and market share against bigger rivals in that massive market. In l recentlyd hit a record wednesday. Right now we should be good to go with a record level, the stoxx being lifted by earnings. Check demand climbing out of a ut. Sistent r we look at the prices this lastng, stabilizing after year of declines. When you look at the bottom part of the panel here, you are looking a lot of the gold related names following gains. The retreat in gold prices, leading the declines across the region. Counting at least four or five of them. The bottom 10, 8 down, the stock listed in shenzhen. It rallied 95 over six or seven ays, now we are pulling back little bit, more substantially from levels of less christmas. Perfect world, it is down in hong kong. We will tell you more after the break. This is bloomberg. This is bloomberg. Su we are looking at live pictures, we are in the middle of the trading day. ,e are tracking developments the sector in singapore is the one to watch, possibly a glut in supply. Lets get headlines with su keenan in new york. We began with the hong kong tourism board, it says it is cautiously optimistic about the upcoming Lunar New Year holiday despite the plunge in visitor numbers. Arrivals have tumbled in the face of protests, with mainland tourists staying away. The government is launching a campaign to lord visitors back to boost the citys attraction. We are in Uncharted Waters in hong kong. The last half year has seen a drop in tourist arrivals about 36 year on year. This is on top of last years stellar figures when we had the opening of the macau bridge in the highspeed rail. A lot of people came to try out the bridge and the rail. Su in hong kong protest classes continued with police arriving to break up a smallscale demonstration and Eastern District of the city. Rotesters blocked a road the European Union is on course for a new brexit class with the u. K. , saying a trade deal is impossible. The Commission President told an audience in london that the eu is ready to work around the clock to strike an agreement, but warned Boris Johnson that there is not time for detailed negotiations. Johnson has demanded a deal by the end of the year. India is opening its domestic coal mining efforts to attract Foreign Investors to meet growing energy needs. They removed restrictions on the use of coal among other measures, and allows bidders to use certificates for other industries in mining. Y have a target global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. David thank you for the update. I will give you a brief update on equity markets. In case you missed it, 32. 53. We are inching a little higher now, i am being generous. It is a reverse when you look at asia, all the losses from yesterday on the back of the deescalation mindset that has gripped markets. It is hard to imagine this time yesterday that was at 107. 80. Gold is in a cage today. The story across the yield space, most yields, when you look at what is happening in asia, perhaps a followthrough whichappened in the u. S. Is why you are seeing reversal in treasury markets. And a look at our approach as we count down to the open in india, and we will get an update when markets open in mumbai. We just opened in thailand 30 minutes back. Haslinda lets talk about acquisitions. Bank is looking to transform with a larger presence in Southeast Asian markets. It snapped up a controlling , but closed at 3 billion. Lets discuss this in more with president executive director, bangkok bank, chartsiri sophonpanich. Congratulations on the move. 2. 7 billion to be exact, it does not mean a smaller dividend for your shareholders. Chartsiri we look to maintain as we haved payments for the last several years. The approval process will conclude by the end of 2020. Haslinda how did you convince your shareholders, major stakeholders that this was a good move . Chartsiri we are in the process of seeing are investors, and we look at this for quite some time , and we believe it has a good corporate which will complement in the region. Haslinda how do you see it playing out in terms of growth, and profit . How much will it contribute to your overall performance . We believe with a strong underlying economic the combination of the banks will lead to a good return for shareholders. Haslinda analysts are saying you perhaps overpaid for your could you have overpaid with returns below average in asia . Chartsiri we have done our calculation, and the price reflects what we see that they can bring to shareholders longterm. It will be a value creation. And we will go through this transaction without additional equity increase. Haslinda specifically what kind of value, what opportunities, what are the plans . Chartsiri the current has been very good mind we are happy with the current plan. We believe the combination with the bank will expand business into the Corporate Banking side, and we continue to do retail funding. Haslinda how much will you invest . Are you planning to hire more as you look to expand . Chartsiri we will continue to do so, we believe in the management and it will complement ou