Transcripts For BLOOMBERG Bloomberg Markets Asia 20240712

Well despite the fact that we speculative trading should be curved up, well see how yum china is doing but a muted debut so far here in the city. We are expecting a Bank Decision highly expected to stay on hold here today. Also with the ecb as well. Watching the euro very closely. Did gain yesterday on the back of a report that some ecb officials having a little more confidence in the recovery from this pandemic ahead of its policy meeting. Theyre likely to hold. Well see what they say about the strength of the currency. 118 for the zero dollar. Pound still under pressure here. Things like the seems like the e. U. May be take manager Legal Proceedings or measures here to stop the withdrawal from this deal that Prime Minister Boris Johnson has been play to play out here. Your indonesia rupia as well. Recovering a bit on concerns about the Central Banks independence. Government think ceying it was opposed to the plan of a monetary board being set up at b. Y. Well dig deep beer shah in a bit. Also checking yum china, see how those shares are doing here. We mentioned how things were lower here today an well get that in just a bit here as well. For our first word news, corina mitchell. The European Union is considering legal action against the u. K. Over plans to breach the agreement governing britains withdrawal from the e. U. They believe they may have a case to seek remedy even before the internal bill is passed by parliament. The Prime Minister defended the move. Nobody wants to see a barrier down the irish sea. What were doing which i think will be it would be injurious. Were bying a safety net beneath which you cannot go wrong to protect peace and protect the settlement in our kinetted kingdom. The European Central Bank Painting a slightly brighter picture with a new report showing polly policymakers sticking to the juneout look for inflation. The e. C. B. Is expected to hold rates steady thursday but further easing is possible before the end of the year. Jakarta is bringing back tough restrictions on offices and restaurants as coronavirus cases surge there. The city will shut Entertainment Venues an places of worship, limit public transport and order all nonessential staff to work from home. Global deaths have topped 900,000. India remains the latest epicenter with more than 1,000 people diing from covid each day for the past eight days. Here in the u. S. , large parts of california are being covered by an eerie orange glow as wildfires and a record het wave heat wave continue to spread dense smoke. Power is slowly being restored after being switched off for half a Million People to prevent fires in a windstorm. Fires have burned 2. 5 million acres this year, the most on record. Im corina mitchell, that the bloomberg. Yvonne, back to you. Yvonne thanks. Well check yum china stock right now. Its down about 4 here in its first day of listing in the city. Of course we were all asking these questions about just how sustainable this rally has been in hong kong. In particular. But despite the fact that theres still a lot of questions on whether youre willing to bet on the sector. We have seen the consumer come back. When it comes to eating out thats still a bit uncertain here right now. Of course today they are down 4 . 412 the i. P. O. Price. The c. E. O. Saying shes optimistic about the recovery in china, its at a good pace and yum china hoping to open 800 to 850 store this is year. Back to the marks now. Asian stocks tracking u. S. Gains after rebounding from the threeday rout. The technevey nasdaq 100 recouped some ground wednesday after falling 11 over three trading sessions. Joining us is jonathan curtis, Franklin Templeton portfolio manager, joining us from california. Do you think the tech wreck is over and where do we go from here . Jonathan good morning. Thank you for having me on. Yop if the tech wreck as you call it is over. Markets do this from time to time. We are biding our time looking for better opportunities to add to some of the names we really like. We think the big opportunity in the tech space is this idea of digital transformation, about using software and data, you have to understand your customers and business processes and using technology to radically transform those things. The past three days have seen, or past three or four trading days have seen a lot of volatility in the space. We feel very, very good about those themes. Valuations certainly have risen a bit in the sector since the covid crisis. Came on. But we dont think theyre excessive. So weve got some dry pouder to add to names as things continue under pressure here. And of course a lot of focus has been on the Options Market and the overhangs of that. Whether you believe that this rally was fueled by, you know, the nasdaq like soft bank or Retail Investors how do we gauge if weve come to the end of that . Onathan thats hard to say. We are fundamental analysts and are paying attention who to the what companies have been saying, whats been happening in their businesses. Many of them are seeing a strong acceleration in the fundamental trends weve been talking about around digital happening during the crisis. So its no wonder to us that investors have been coming to the sector to partake in not only that cyclical growth from the covid crisis but the structural acceleration in some of these themes. So you know we havent dug much into the options activity thats been talked about here of late. The fundamentals in the companies that were invested in look very strong. We feel very good about the acceleration weve seen in some of these multiyear themes. Yvonne you menged what youve been doing with the fund. Youre still outperforming most of your peers out there but still hold some of these big stocks like apple, amazon, microsoft. Have you had to adjust to some of this within the fund after this fell off . Coming into the crisis we owned all those names. During the crisis, certainly we added to names like that. But also a number of our smaller mid cap names. We havent made any big changes month to date in the strategy. We are olding a little more cash, that gives us some cash to add to things. Certainly quarter to date weve been more active in some of the semi names and chinese internet name bus havent been making big adjustments over the past week or. So yvonne all right, jonathan hold on a second. I want to mark some lines were seeing here in the market with indonesia in particular. The jakarta composite falling 4 . This is after we learn that jakarta, the capital, was bringing back some of these social distancing measures as the number of new corona cases there are rising. Theyre requiring nonessential industries to have employees work from home and limit the use of Public Transportation. Indonesia has been one of the biggest victims of this pandemic, especially in the Southeast Asia region. So we are seeing the marks take a hit if that here today. Well have more on that later with hsbc as well to look more closely at the Southeast Asia side of things. Jonathan lets bring it back to you and talk more about tech. You mentioned valuations. Im looking at the e. P. S. Forecast from some analysts right now youfl see Companies Like apple havent exactly seen those forecasts rise along with the stunning rally that weve seen the stock. Are investors still getting what theyre paying for . Jonathan we think theres some element of the fed sort of shoving investors into the equity markets. So in part we think that investors are going to places where there are really trong Business Models. Still growth. Dividend payers like a microsoft or apple. And so thats probably helped expand the valuations in the space in absolute terms. But relative to the broader market, given the good growth and quality we find in the secondor, we done find the valuation to be excessive at least in relative terms. We acknowledge theyve moved up in absolute terms. Thats why weve been keeping a little bit of powder dry so this this selloff continues thatll give us an opportunity to add to ames we really like. Yvonne is there anything in the tech space youre avoiding right now, jonathan . Jonathan there are some names in the space that have had sort of an impulsive demand, very covid inspired, that we dont think is going to sustain. But there are other names that have seen an acceleration in trend and we think those trends will continue to build. So were avoiding those names that had that sort of impulse in demand. As always we have a high quality bar. Companies weaker Balance Sheets, weaker cash flow profiles. Weaker Management Teams. We avoid those as a rule but were being particularly careful with names like that in this environment. The environment clearly is very dynamic and requires the strongest Management Teams, the best Balance Sheets to navigate it all. Yvonne jonathan, thanks for staying late for us. Jonathan curtis, Franklin Templeton, their portfolio manager. Coming up we talk to chief market strat gijs james asking him about whats happening in jakarta. They are bringing back social distance regular strixes. Up next the pandemic reaching a new milestone, global deaths top 900,000. Donald trump says he deliberately down played the virus to save a panic. This is bloomberg. Fact is, im a cheerleader for this country. I love our country. I dont want people to be frightened. I dont want to create panic, as you say. And certainly im not going to drive this country or the world into a frenzy. We want to show confidence. We want to show strength. We want to show strength as a nation. And thats what ive done. Weve done very well. The president of the United States admitted on tape in february he knew about covid19, that it passed through the air. He knew how deadly it was. It was much more deadly than the flu. He knew and purposely played it down. Worse, he lied to the american people. He knowingly and willingly lied about the threat it posed to the country for months. E had the information. Yvonne youre hearing President Trump there telling Journalist Bob Woodward why he intentionally played down the threat of the pandemic and you heard joe bidens reaction there. Lets turn to our Senior International editor jody schneider. A big political issue. We heard it on tape. Its hard for trump to deny this statement. But how is he addressing the situation now and what he told bob woodward . Jody hes simply doubling down on what he said in terms of, hes not denying it. Its right there on the tape so it would be hard to deny. Hes saying he didnt want to instill panic. And still doesnt want to. And that he didnt want to scare anybody and also didnt want to hurt the economy. Those are that was going to be his tack with this. In the past with some of the past books that have come out including some recent one he said fake news, never said that with the atlantic article about some of his disparaging comments he made, allegedly made about the military he has brushed those off. He cant do that in this case because the tape is right there and so hes basically saying, i did it out of a good sense of patriotism. Im not sure how is that going to work . Well see. The election is just two months off. This is a critical time for a book like this to be coming out. Yvonne how big is this and does this in any way benefit joe biden . Jodi i think this will be a major issue. Were seeing that with voters. Joe biden is up in the polls, has been, and a lot of this is about the president s response to the virus. Were still seeing the death, seeing the u. S. Number come closer to 200,000. And theres still not a federal response, a unified federal response from the u. S. This is so its going to be a big issue. The president has tried to really detour from it, to have a law and order presidency coming off some of the recent protests and what he calls riots in the u. S. But this is going to stick it looks like. This book brings it to the forefront again. Joe biden is making a lot of this, saying the president knowingly misled the country. That he knowingly lied. And thats likely to be a good tack for him to take. We will see what happens. These things can have a short shelf life. And there probably will be other books coming out and other issues coming out but the virus issue is not a winner for the president right now. Yvonne lets talk about the vaccine race as well. We saw the setback with astrazeneca yesterday with this vaccine trial pulled. Whats the latest here . What questions are being raised now . Jodi astrazeneca, who is partnering with the university of oxford, is getting a lot of questions about what exactly caused the issue for this vaccine to be halted and whether the serious possible serious neurological problem in one patient could be related to the vaccine. Astrazeneca confirmed it stopped giving patients experimental shots after a person in the u. K. Who was participating got sick. We have heard from the u. S. National institutes of health finalor saying the its a problem. So lots of questions around this. And a question is will they be able to renew the trials . Astrazeneca has been one of the early, fastest out of the gate, in terms of trials and have been basically in some of the later stages of this so this is another sign that this is going to be a very complex process to get a vaccine, to get even one vaccine, to market and then to try to widely distribute it. So some of the claims that we could be having vaccines in coming weeks and months this does seem to underscore that that is very unlikely to happen. Its a much longer process to get a vaccine that could be idely distributed. Yvonne certainly a reality check. You have to wonner how its going to affect other vaccines that rely on the same kind of technology. Thank you, jodi schneider, our Senior International editor with the latest. We have plenty more ahead, this is bloomberg. Yvonne we have more on astrazenecas halted trial. Johns Hopkins University professor Lauren Sawers told bloomberg why caurgs is caution is a good thing an when we might see effective immunization. I think were going to see a success in vaccine sometime next year. I am not as optimistic as some of the people who are talking about a vaccine by the election or by the end of this year. I think were seeing some really good data out of these candidates, theres nine in phase three. But i think we do have some time where well have to wade through some of the data and better understand how well the vaccines are working and what the priority is for manufacturing. Yvonne are we going too fast trying to find this vaccine . There will be hiccups but it actually will be safe when its out . I think theres elements that are moving a little fast for my liking personally but i think the the news other the weekend of the vaccinemakers led by pfizer and moderna and astrazeneca to pledge safety over speed was a really important step. Its a little bit of a worrying step, i think, because the fact that they felt they needed to say that, where were prioritizing safety, means perhaps that they were being pushed to speed up the timeline. Everybody wants a vaccine, a vaccine is incredibly important tool in our tool kit. But we need to prioritize safety. So i think seeing that step by the vaccinemakers was really important. Yvonne lauren, what does it mean in terms of what theyre worried about . Is the worry that we have a vaccine thats not safe, or that we have a vack scene thats safe but no one wants to be injected with . I think its some combination of the two. I think the these phase one trials, they start with safety. We understand the safety profile before we even start to understand the efficacy of the vaccine. But here in the u. S. For example, we have a Vaccine Hesitancy problem. So its not just rolling out a vaccine thats safe based on clinical data. Its also its also really important to understand what will stop people from taking it . What will encourage people to take it in what are the safety and efficacy data that people, the public want to see in order to ensure that they will go an get that vaccine. Because if we create a perfect vaccine but no one wants to take it, it doesnt matter. Because of this unexplained illness that caused astrazeneca to suspend the trial, does that mean it will be harder to get healthy individuals to try out future vaccines for covid19 . Ic that people should actually be happy to see that this is happening. Normally i think that this wouldnt make national news. But because this is such a national and international priority, this is a standard process in both vaccine an therapeutic creation an production. We stop trials when we see something concerning or unexplainable, something that doesnt align with the data we saw in phase one and two. So this is astrazeneca doing their due diligence. Looking at this adverse event. Looking at what happened to this person who had an unexplained illness. Going back through day to see to see if they saw it elsewhere. That was johns Hopkins University assistant professor of emergency medicine lauren sauer. The school is supported by michael bloomberg, founder of bloomberg l. T. And bloomberg philanthropy. Yvonne j. P. Morgan is said to have found some of its employees pocketed covid relief money intended for legitimate u. S. Businesses hurt by the pandemic. Thisback discovered the actions after suspicious ams of money were deposited into employee Checking Accounts. J. P. Morgan has fired several plose over the incident. Taking a look at at the markets, were losing a bit of steam in the 10th hour here in hong kong. U. S. Futures heading lower. Nasdaq futures also reversed here. Were watching closely jakarta, the composite down about 4 . Jakarta had to bring back social distancing measures. Hospital capacity is running thin there. If it wasnt for these new measures as well. India futures flat right now. A pan looking slightly better into lunch break. Currency, eurodollar the one to watch here. A heavy e. C. B. At 118. Yields on the 10year pretty much flat around 69 an gold also pretty flat here today. Weve got plenty more to come, this is bloomberg. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. The big events are back. Xfinity is your home for the return of live sports. It is 10 29 a. M. In hong kong and shanghai. Here are the first word headlines. The u. S. Has revoked more than 8000 visas of chinese nationals in a move to inflame relations between beijing and washington. Believed to have links to the chinese military. Some 360,000 chinese nationals attend u. S. Schools, generating 14 billion every year. Pfizer will supply the a the biggest yet for the u. S. German partners. Million totop of 120 japan and happy billion promised in the u. S. Astrazeneca may resume trials week. They were halted after a participant in the u. K. Experienced neurological symptoms consistent with a spinal disorder. President trump has defended telling bob woodward he intended he intentionally downplayed the severity of the coronavirus saying you did not want to cause panic or price spikes. They were not published until cnn in Washington Post reported on woodwards book. I am a cheerleader for this country. I do not want people to be frightened. I do not want to create panic as you say. Certainly i am not going to drive this country or the world into a frenzy. We want to show confidence. We want to show a strength as a nation. That is what i have done and we have done very well. If the president the president of the unites states has admitted on tape in february he knew about covid19. He knew how deadly it was. It was much more deadly than the flu. He knew and purposely played it down. Worse, he lied to the american people. He knowingly and willingly lied about the threat it posed to the country for months. He had the information. Karina 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. Im karina mitchell. This is bloomberg. Lets take a look at markets right now. Seems like things are off some of the highs in the session. We mentioned markets like jakarta following heavily on the back of the fact they are still struggling to fight this virus. Southeast asia down 1 . Asia is looking a little bit better. Off the highs of today. It seems like we will see how this plays on the wall street session. Nasdaq futures in the red. Nifty futures in singapore flat at the moment. Zero pound, interesting pair to watch with the ecb seemingly more confident in the recovery ahead of the policy decision today. 91 for the euro pound. Considering legal action against the u. K. Offshore room and be a little off. Just under 684. We have been dealing with the gdp drop. We could see a cut. A rebound of 1. 5 after what we have been seeing with this drought in tech shares. We are seeing big names recovering today. 1 chinext still elevated by despite what we heard about people looking or speculative trading will be carved. The listing, al soft opening. Down close to 5 . Softbank halting the fiveday drop. Take a look at our focus on Southeast Asia, which really has missed out on this rally. Take a look at this chart. You have lack of tech stocks in some of these markets. Has made it unloved by some of these investors. 20 aussie on benchmark down this year. A lot of questions on what is next. Joining us is the chief Market Strategist at hsbc private bank. Great to have you on the show again. Aussie on. Ed about and indonesia as one of the regions that is still struggling to fight this virus. You have Southeast Asia, these stocks that dominate the benchmark. Do you think the region will continue to be overlooked . James i think for Southeast Asia, the strategy in the short term will be one that is much more nuanced. We are generally neutral for the region. For some markets, we are underweight. Southeast asia as a whole and some parts of it are still grappling with trying to flatten the covid situation. The economic recovery as a result will be very different and at a different pace. Some countries will recover stronger. The approach to Southeast Asia investing right now would have to be extremely nuanced and of course, it depends a lot on what the policymakers will do in the coming day and days and weeks and months. You are inl us how the region. Do you think if we do get this covid situation under control that perhaps Southeast Asia can catch up . Really dependsit on many factors. Of course, you have to see the composition of where Southeast Asian markets are. The approach is extremely one of being selective. Singapore, there are interesting opportunities such reads, whichore can benefit from the post covid world of more in commerce transaction of more ecommerce transaction. Of course, you are right. All economy exposure would be a factor in this new world in which there is much more focus on technology and on companies that can adapt to this new post covid world pandemic reality. Yvonne we have a decision today, ecb as well. We heard from the ecb that they are getting more confident with the recovery and perhaps may hold stimulus for now. Are we likely to see how the Central Banks follow suit and what will that mean for markets as Central Banks are scaling back from massive stimulus . James i think at this stage, what Central Banks whether it is in the region or globally, they are in a wait and see mode. They are looking at the Economic Situation and whether should downsideact sense any risk. If there is Downside Risk, the beance of risk would be to extremely accommodative or even do much more policy easy. I think they are in a wait and see mode for the upcoming meetings. They will want to keep the emmys vision the ammunition. That might be much more easing if there is a Downside Risk that should materialize. There was a little debate in indonesia as well of this draft bill that is proposing to set up a monetary board at the central bank of india. How concerned are you of indonesia. About thened are you independence in light of this . James i think it has to be a lot about the indonesian economy. The indonesian economy at this stage is slowly recovering. It might be fragile at this stage but a lot has to be on Infrastructure Spending that is going to occur sometime down the road when the covid situation is much more stabilized. Of course, indonesia does face issues associated with a current account. In terms of the currency, the central bank has to have some stability on the currency side of things such that the Monetary Policy can be effective so the rate cuts can create that Economic Growth they want. A lot of the reforms are on the way and i think it is still early days. I believe policymakers are able stimuluse that sort of and growth for the economy in the months ahead. There are many Foreign Investors like yourself who do phase your indonesia, particularly in the hard currency. Does it change your bias in any way if there is this autonomy under threat . James i think for indonesian assets generally, we have a selective approach. Even in terms of bonds, we want to be selective, looking for carries at this stage. The approach is one that is selective, looking directly at a bottom up perspective to see companies incorporates that can benefit from those whole new post covid19 reality and of course, companies that have the strong fundamentals to provide that sustainability of earnings in a more uncertain world. View would be selected would be a selective approach. Yvonne so still very selective on the asean overall. Where do you still see conviction these days . Are you still sticking to the north east asian markets . North i think our view is asia will continue to outperform Southeast Asia. Therefore, our convection as in the north asian market, particularly in china. The growth in china is starting to show some solid footing. ,he exposure and the change particularly in the type the Chinese Technology space is important for eyes. We think china can continue to do well. Many of the chinese Technology Companies can benefit from a post covid 19 world in which the Business Models are more adaptable and in terms of earnings and sustainability, those companies, looks much better in the months ahead. Yvonne the chief Market Strategist for Southeast Asia at hsbc. A tepida shows saw listing in hong kong after the ipo raised 2 billion. Lets get the calm mackenzie get the Tom Mackenzie. He is in shanghai where he spoke to the ceo. It was a soft opening for yum china. What did the ceo have to say about it . Of lack of appetite, pun intended for the stock. The secondary listing raising a little over 2 billion u. S. Dollars. Goingulli ceo said forward, she is confident in terms of the recovery of sales she is seeing and she recommitted to this target of adding an additional 800 to 850 stores the company. It is the biggest Restaurant Company in china. We have the exclusive rights to kfc, pizza hut, taco bell and other restaurant chains in china. They want to build on innovation and focus on acquisitions. Take a listen to this interview with the ceo of yum china. We have been here for 33 years now. We are seeing a lot of ups and downs and market movements. I think it is fair to say of the 33 years, we have established an exciting business here and certainly we are seeing huge opportunity going forward. Tom i want to asked what the timing of the ipo. There is a concern maybe there is a liquidity squeeze in hong kong. Are you challenged by the timing . We just feel that this year is the right time to do it. Because the Hong Kong Ipo market is doing incredibly well. The hong kong investors, they know the business in china a lot better than in other places. To besting also allows us closer to our customer, our community. Our view is very longterm. Later, ihis year or think the most important thing is we feel the timing is right and there you go. We are incredibly excited about the milestone. Tom the rationale for the secondary listing is being closer. Absolutely. Tom there must be some discussion at the board level about the noise we have heard in washington about threatening to delist chinese companies. Moveen we consider such a from company, them at for our company, the most important focus, we look at our employees, our customers, our shareholders and our communities. There are many factors beyond board, wel and as a always take things into the holistic view and we consider what is the best to do. We are very clear about who are the key holders here. So there we are. E make it you can see my team outside, they are so excited and that is the most important thing. Tom you have raised 2. 2 billion u. S. Dollars. How do you prioritize how you put that money into play . Areas we area few going to focus on. Because wes growth are in 1400 cities in china. There is still another 800 cities in china that is not even one store. In 500ut, we are only cities in china with our 2200 plus store. There are 1700 cities in china we do not have a pizza hut store. Most stores is more stores is one area. In terms of the Digital Investments in the pricing investment, to grow the 20,000 stores, that is the second focus. Longterm thishe opportunity is exciting. Tom you hit your 10,000 mark in terms of stores and units. You had a target of adding an additional 800 to 850 by the end of 2020. Are you still on target for that or do you have to push expansion into 2021 . This is still the aspiration we have for this year. We have not changed that despite as iovid19 because probably mentioned many times before, we are here for the long term. We see the longterm trend is still very exciting. We are not changing that aspiration of 800 to 854 this year. 850 for this year. Tom they sell their business pressured significantly by the pandemic. A cell sales down by they sales down by more than 10 . She is not overly concerned about the health of the chinese can assume are the chinese consumer. She says u. S. Tensions are not at this point weighing on the business. She is optimistic looking into 2020. Yvonne we could be seeing some more taco bells and kfcs around china. Thank you for bringing that interview. We will see you back in beijings and. Beijing soon. Employees who pinch money meant for Small Businesses are being sacked. We will have the details next. This is bloomberg. Yvonne jp morgan has found some of its employees improperly applied for and received covid related relief money. The funds were intended for legitimate u. S. Businesses hurt by the pandemic. Lets bring in su keenan. She has been following the story for us. We are hearing some employees were fired because of this. Su a person close to the matter has told bloomberg the bank fired workers after finding they improperly applied for and received money that was intended for those Small Businesses hurt by the pandemic. The Bank Discovered the misconduct after noticing suspicious amounts of money have been deposited in a Checking Account owned by the bank employees. This was part of a broader sweep of individual locales. The sweep designed to detect a misuse. Clearly j. P. Morgan chase not of the debt did not expect to find it among their employees. These loans and grants were given out by the government as a lifeline to Small Businesses the banks findings led to a unusual message that went out companywide tuesday that caught a lot of attention on wall street because it was candid in admitting that were potentially illegal acts committed by the employees. It did not say what they were. We now know they were for workers who improperly pocketed relief funds. Yvonne you have to wonder just how much of this behavior is going on right now among some of these banks. Beyond jp morgan, how wide could this improper use extend . Su the Small Business association had warned banks in july to be on the lookout. We do know some phantom firms got more than a billion in aid. What you have to realize is the Payroll Protection Program that got a lot of attention earlier in the summer was administered through the banks. These were loans and grants that were given directly by the Small Business administration. Thanks were asked to help them by doing these broad sweeps of accounts, which jp morgan did. The Inspector General for the Small Business Association Found more than 250 million in aid to potentially and eligible recipients across the country. 45. 5 million with possible duplicate payments. Bloomberg checked the Small Business associations data and found 1. 3 billion in suspicious payment has gone out so far. Yvonne great story. Thank you. We have plenty more ahead. A check on the markets coming up next. This is bloomberg. Yvonne a quick check of the latest business flash headlines. 1 billionto advance to the Reliance Retail business. Investors queue up to take on amazon in india. It follows a similar injection from silverlake that values the retail unit at around 57 billion. Billion in his20 digital platform. The board at rio cento is to debate the future of etsy ao. Of its ceo. Sources say a meeting to decide the fate of the ceo and other executives is due this week. The may explosions have left stakeholders in Western Australia seeking more action. Bankers for softbank are said to have received orders for all 12 billion dollars of the stock it is selling in its wireless unit. Both local and International Investors are full. The price will be set next week and is expected to be lower than the initial public offering. Nintendo has asked Assembly Partners to boost production of its switch gaming console by as many as 30 Million Units this year, which would mark a 30 jump in output. The game maker has been struggling to keep up with demand, boosted by the success horizons crossing, new and the pandemic keeping people home. Its 60ed to call off billion purchase of louis vuitton. It has asked delay the deal for reasons related to a trade dispute with the u. S. Tiffany claims lvmh is trying to seek a lower price by using the recent u. S. Protests and covid19 as leverage. It has countered with a lawsuit. Take a look at markets before we go. It seems like a mixed picture but mostly higher for much of the region following the tech rebound we sell overnight. Take a look at some of the tech heavy benchmarks. The cosby antibay doing quite well. Singapore under a little bit of pressure here. Pretty quiet today. Malaysia also in the red as well. Jakarta is the focus after the capital had to bring back some of the social distancing measures. Shares down 4 . With Chinese Markets looking firm with the shanghai composite up seven tents of 1 . We are still watching the yum china debut. Pretty tepid debut in hong kong. This is bloomberg. It is almost 11 00 a. M. In singapore and hong kong. Welcome to Bloomberg Markets asia. Rishaad this is a look at our top stories. We have a tepid debut for yum china in hong kong. Investors losing their appetites. Name land the ceo tells us she is targeting a massive expansion in stores. Tradete asian stocks firmer after u. S. Equities rebounded from a three day geopolitical risk continues to intensify. Rishaad President Trump defends publicly downplaying the severity of the coronavirus threat, saying he did not want to create panic or price spikes. Juliette we are seeing a little bit of a rebound coming through on asian markets today. These tech players lifting is higher after we saw the short correction. The nasdaq having its best day since april and wall street. The chinext rebounding from its worst day yesterday since july the third. Australia getting a boost. Money coming back into the oversold energy stocks. Watching what is happening in a lot of the ems, particularly in jakarta. We have seen indonesia say it will bring back social distancing measures in jakarta. Stocks falling the most since march. Keeping an eye on what is going to happen with the malaysia rate decision. Expecting to keep rates at a record low at 1. 5 . Singapore has set up Contact Tracing so we can start to increase the number of people in gatherings. Rishaad looking at what is going on with the open in bangkok. Stocks flat. Following on with the global trend. The nifty contract is up. Indicating a flat start to the trading day. The bar at its highest level in a week. Inflows into the countrys bond market. 10 year yields in india have been creeping up a little bit. Seeing a little bit of a move to the downside. Lets turn our attention to the other central Bank Decision. Malaysia. The big one is the European Central bank. Investors expecting new projections. Lets have a look at what to expect. Mark crane feel joins us. What will Mark Cranfield joins us. What will traders be looking for from the ecb . Mark it is a fine line for the ecb today in the rates market. Some people were expecting rates to be pushed a little bit lower sometime over the next six months or so. It is going to be hard for the ecb to justify if they are going to say they are more confident in the Economic Outlook, if they think the worst of the pandemic has already been factored into the european economy. From that point of view, rates traders in europe are going to see it as a slight negative to what they have been expected. It is not an easy day for the ecb to get the message across they want to maintain a high level of market acquitted he of market liquidity. They are trying to take people away from the idea they would be doing anymore accommodation in the nearterm. It will not be an easy message for them to get across. Ecb have shown before they are fromto take this fine line keeping the market in tight range at the same time shipping the message to europe is improving slightly and they may need to take back a little bit of the stimulus they have provided in the last few months. Juliette what about in the currency space . Is anything that lagarde says likely to trigger an fx war . Mark it is where she really has a tough job because over the last couple of weeks, we have seen her colleagues have questioned the strength of the euro. 120. S. Dollar hit we heard a couple people from the ecb pushing against your strength. We sell it against euro strength. Lagarde will be conscious of the fact she does not want to trigger a global effects were. If she was going to talk devilishly about the euro, that could get the attention of the u. S. Treasury, possibly japan as well. Avoidy even try to discussing the euro out right just because she does not want to excite the Foreign Exchange market. It is going to be pretty hard for her to keep the euro down on a day when peoples eyes will be. Ery closely i some of my colleagues have been saying, there is a slight upward bias toward the euro when lagarde speaks later today. Juliette Mark Cranfield in singapore. Thank you for your insights. Lets head to new york and get the first word news with karina mitchell. Karina tiktoks parent bytedance as reported to be in discussions with the u. S. Government to avoid a full sale. It gathered new urgency as the deadline for the sale approaches and china put into place new data laws that could potentially delay the sale. The date set by President Trump is september 15. The European Union is considering legal action against u. K. Over new plans to breach the agreement governing britains withdrawal from the e. U. E. U. Judges believe they may have a case to seek remedies even before the bill as passed by parliament and certainly after it. U. K. Prime minister defended the move. Nobody wants to see a barrier down the irish see so what we are doing, which i think will be injurious, what we are doing is putting a safety net beneath which things cannot go wrong to protect the settlement in our united kingdom. Backa jakarta is bringing tougher restrictions on offices and restaurants as coronavirus cases search. The city will limit Public Transportation in order not a Central Staff to work from home. Global deaths have topped and hundred thousand. India remains the latest epicenter. Here in the u. S. , large parts of california are being covered by an eerie orange glow as wildfires and a record he wave continue to spread dense smoke. Power is slowly being restored after being switched off to have a Million People to prevent more fires. Californias fires have burned through 2. 5 million acres this year, which is the most on record. 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. Im karina mitchell. This is bloomberg. Iette still ahead, rishaad still ahead, we speak to the oasis founder and manager about his strategy over japan during these times of political change. Juliette next, inside the world of investing with jenna lee. Of a southfounder of korean investment manager. This is bloomberg. Rishaad you are back with a Bloomberg Markets asia. The tech heavy nasdaq 100 fell 11 over three days. Volatility remaining elevated. Investors will be on side . Be on guard for more selling pressure. Ceorally, the founder and of aim, a coinbased hedge fund style investment firm. Thank you for joining us. An algorithmic perspective. What is going on . How are your programs interpreting the price action we are seeing globally . Entering theually early phase of recovery. Extremist views out there. [indiscernible] the thing is, all this volatility must mean you guys are making money because quants generally thrive on volatility. Absolutely. For some Investment Strategies in the traditional hedge fund space, yes. We are focusing on low volatility. On preserving capital. Now we are making a huge dynamic allocation decision to go into markets. I think more in terms of growth exposure is coming in. Aboutve to be defensive the shortterm drawdowns. Quant, ity for active is an opportune time to show your grit. Ing out of the volatility, [indiscernible] give us a sense of what type of changes you are seeing in the marketplace now then. So, you are seeing momentum playing out. I think people are uncertain whether we are going into a doubledip situation or we are going into a rebound. With the a year craze Retail Investors in asia overall. They were reporting 1. 5 million into tesla in the last few months. We know how it panned out. The volatility has changed in this market. Friendly actually very toward unsophisticated minds. There is a testing time for investors as well as passive investors, passive players who will have to cope with this Inflection Point where you want to be exposed to growth premiums and also momentum does not play out well. If you are chasing momentum, you will be penalized. Juliette lets pick him on what you are mentioning on korea because the market has overtaken china as ages top when you are mental rebounding from the lows in march. Do you still continue to see a lot of rotation in terms of looking for more value in korean stocks and what about the impact of the shortselling ban . It is a political battle more so than fundamental. To be honest, korea has historically been a speculative market. There are a lot of people asking mature selling exposure widely available for retail even. With or without the band, the market will see adjustments and an inversion over the course of the next three to four months. [indiscernible] you will see more efficiency in the market. Market correction. May not happen in the short term. You have to have a balanced view on what you can do and what you cannot do. The reality is you will see volatility. Having a mutual exposure versus short exposure are two different things. Bean investor, you have to focused on risk diversification more and realize you have that short [indiscernible] juliette when you are talking about looking for growth, we were looking at some of your top calls earlier. I noticed you still have gold in there. We are seeing calls anz has one for jenna gold is not necessarily a risky bit. I call it defensive growth exposure. There is definitely a premium on the gold factor. The exposure portfolio about 40 to 50 or even 50 . Growth exposure in general. Whether you funded tech stock or consumer or [indiscernible] largecap growth has performed very well. There are in smallcap as well. There will be Inflationary Pressure as well. [indiscernible] looking for three or four months. They are looking for six month to one year gains. When that is happening, [indiscernible] you absolutely have to [indiscernible] when do we see fatigue in terms of retail trading more broadly speaking . Do we see a little bit more of a pullback in these next couple of months, which typically are not so kind for equities anyway . Jenna institutional versus [indiscernible] there. Ortion is still they are hoping for the market to pullback again. They will stay for a while i think. [indiscernible] rishaad i just want to have a look at the businesses as a how it is quant changing here. Are you using more and more Artificial Intelligence . Is ai the future for you . Onna for us, we are focused our signature strategies, which is more on the back cycle. We use less Artificial Intelligence. [indiscernible] juliette thank you so much for joining us. Coming up on Bloomberg Markets asia, yum china is slipping on its debut. The ceo tells bloomberg it is the right time to do an ipo. Are exclusive interview is next. Our exclusive interview is next. This is bloomberg. Juliette yum china shares have phone on their secondary listing debut in hong kong after raising more than 2 billion. The ceo spoke exclusively to Tom Mackenzie about the timing, the market and the outlook for china. We have been here for 33 years now. We are seeing a lot of ups and downs and market movement. I think it is fair to say after 33 years, we have established a very exciting business here in certainly, we are seeing a huge opportunity going forward. Tom i want to ask about the timing of the ipo. There is a concern maybe there is a bit of a liquidity squeeze in hong kong. Are you challenged by the timing . That this year is the right time to do it. Market isong ipo doing incredibly well. The hong kong investors know the business in china a lot better places. Other the listing allows us to be closer to our customers, our community. Our view is very longterm. Whether this year or later, i think the most important thing is we have the team, we feel the timing is right and there you go. We are excited about the milestone. Tom the rationale for the second listing is being closer to consumers in this part of the world. Absolutely. Tom there mustve been some discussion at the board level about the noises in washington we have heard about threatening to do you list chinese companies. This mustve been a hedge for you. When we consider the move for our company, the most important focus we always look at our employees, our customers, our shareholders and our communities. There are many factors that are beyond our control. As the Management Team and as the board, we always take things into the holistic view. We will consider what is the best to do. We are very clear about who are the key stakeholders. There we are. We make it. You can see my team, they are so excited. That is the most important thing. Tom you raised 2. 2 billion. How do you prioritize how you put that money supply . That money to play . There are a few areas we are going to focus on. The first is growth because we are in 1400 cities in china right now. There are still another 800 cities in china that kfc does not have one story. In 500ut, we are only cities in china with our 2200 plus stores. There is 1700 cities in china that we do not have a pizza hut story. Mother stores more stores is one area. In terms of digital advancements and supply chain investments, to grow the 20,000, that is the second focus. We believe that this in the longterm, the opportunity is exciting. Mark in hear 10,000 terms of stories and units. Or dou still on target you have to push some of the expansion to 2021 . This is still the aspiration we have for this year. We have not changed that despite the covid19 because as i probably mentioned many times before, we are here for the longterm. We see the longterm trend is very exciting. We are not changing that aspiration of 854 this year. 850 for this year. Juliette that was the yum china seeing our speaking with Tom Mackenzie. A quick check of the business flash headlines. Simon company in Brookfield Company are poised to acquire j. C. Penney out of bankruptcy. It will keep the troubled apartment store chain alive during the pandemic. They are j. C. Penneys landlord. They will own 490 of the remaining 650 outlets. J. C. Penney failed for j. C. Cy in may could penney filed for bankruptcy in may. Lvmh move to call off its purchase of tiffany co. Louis vuitton owner said the french government had asked it to delay the deal for poisons released for reasons elated to be nine states. And has countered with a lawsuit. Kkr is said to be in advanced talks to invest at least 1 billion to the reliant Retail Business as investors cue up to take on amazon in india. Cashllows a similar injection from silverlake last week that values the unit and 57 billion. Barney also raised 20 billion selling stakes in his gop platform. Plans tois weighing move its u. S. Headquarters to hudson yard from its Current Location in the old Lehman Brothers building in times square. The british lender is said to be looking for around half a million square feet of space. Barclays bought the building when the Investment Bank collapsed during the financial crisis in 2008. Rishaad lets have a look at the Market Action and look at what is going on. The shanghai composite. A bit of a mixed bag. E will hear what we have jakarta index having a rough time. Four and three quarters of 1 down. No clear clue as to what is going on. At the moment, we have the stocks down. The most since march 24. The index fell 6 that day. The next day is when the global stock rally started. Jakarta down hugely into the red and not following what is going on with the regional trend. That is on the way up. 6 10 of 1 . Quickly checking on what we have out of china, this is the rally taking place in australia despite the households holding cash. Csi 300, 3 10 of 1 . The shanghai market gaining ground. It is a good news story essentially with regards to china. Yum china in hong kong on its debut. 5 down. Unlike so many of the ipos, which have been on a fly up. Juliette it is almost 11 30 a. M. In singapore. We are in the middle of the trading day. It is a day where you are seeing most asian stockmarkets track higher. In singapore, there has been a downward trend. Singapore to supply more Contact Tracing. This is into selected venues using a mobile app the government will provide. This is an effort that could pave the way for larger gatherings. Gatherings in singapore are limited to a maximum of five people. Lets get the first word headlines with karina mitchell. Karina we begin in indonesia. Jakarta is bringing back tough restrictions on offices and restaurants has coronavirus surge. Earch cases order all nonessential staff to work from home. Global deaths have topped 900,000. India remains the latest epicenter with more than 1000 people dying from covid each day for the past eight days. The u. S. Has revoked or than 1000 visas of chinese nationals in move sent to further inflame relations between washington and beijing. It is said to be aimed at blocking entry into the u. S. For students and researchers believed to have links for chinese military. Some 360,000 chinese nationals attend u. S. Schools, generating 14 billion a year. Bytedance is said to be in discussions with the u. S. Government to avoid a fall sale of its american operations. The talks have been underway for months. They have gathered new urgency as the deadline for the sale emerges and china puts into place data loss that could delay the sale. The date set by President Trump is september 15. The president has been nominated for a nobel peace prize. States signed their first tip medic agreements and others in the middle east may follow. A politician who nominated trump as the same one who put his name forward in 2018 for the trumpkim summit in singapore. 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. Im karina mitchell. This is bloomberg. We are seeing some gains coming through on the markets and that rebound in the tech space. Have a look at the kospi. Were looking at theres a big selloff coming through in indonesian socks deck indonesian stocks. Down 4. 9 at the moment. This as indonesia announced it is going to step up some social distancing measures next week, could which could but the economy at risk. Governors saying it could expect hospital beds in boards and prepared to if jakarta does not impose the measures. Quite a bit of a sell down coming through and a big move coming through in the rupiah, falling as these restrictions return. More hedge fund grows are betting on longerterm Money Managers at this years conference touted a slew of bullish strategies. Lets cross over to our chief north asia correspondent who is standing by with someone who is bullish on a japanese engineering firm. Lets bring in our guest. It is the oasis manage her and founder a manager seth fisher. Term ofthe second shinzo abe. The last 7. 5 years. Good to see you. It was good to see you last night at the conference and a little panel we did online. Lets talk about the incoming Prime Minister. Yet, but mostd the primewill be minister designate and parliament will confirm that within the next couple days after that. Given the pandemic is the number one priority of the leadership in japan but also maintaining what does it look like to you . Seth it looks like a continuation. Continuedtion and a reinvigoration. Continued Corporate Governance reform. Continued bigger ration of the economy. And a continued focus on companies improving profitability. Stephen how important is continuity . He has been called the continuity candidate. As you mention in your panel, you were saying there have been 17 Prime Ministers since the mid1980s. E none of these people accept able and they lasted longer than three years. There was one that lasted 64 days. Another one that lasted 69 days. Abe going on close to eight years. We are not saying he is going to last that long, but is that continuity now that we have had momentum critical . Abes enduring legacy will be the stability he brought to government, policies. This is a direct continuation of that stability. He was the chief cabinet secretary for all those years. Bring the same vision to reinvigorating the economy. Japan staying on the same path is extraordinarily important. It is important for messaging for Japanese Corporate and it is important to the bureaucracy and it is important to Foreign Investors. Stephen what about the reform process . Does the pandemic give corporate japan the opportunity or the excuse not to embark on the reforms like the shared buybacks you have proposed for a number of Different Companies as an activist investor . Seth if anything, i have heard that more in the Foreign Press than in the emetic prayers. The Japanese Corporate came into this with more cash than before. They came into this well prepared. 25 topics came into this crisis. Over 25 of the Companies Net cash. What happened with these corp. Rates as only what they are going to spend the money on, not that they are not going to spend the money. Those same companies are going to have 10 cash flow yields. Those companies are profitable. Have been a normas amount of cash. They are looking to spend the cash. Whether that is spent on line back their own shares or it is spent on m a, every day and a japan, you have a [indiscernible] as corporates try to take advantage of the crisis. Stephen lets talk about your call with the Civil Engineering company. I believe you have submitted a proposal for the board to initiate a buyback, a fairly modest buyback. They have a lot of cash as you said. You are opposed to their plans to invest even more in low yielding Infrastructure Projects rather than improve a return on equity with a share buyback. How much of a struggle with that to get them to do this at a time when Companies Traded on the topics have an r. O. E. Half of that of the s p 500 . Seth that is correct. Because there in is so large their e is so large. They have too much cash. I personally prefer to buy businesses that make money. If you can buy them that have a lot of cash, that is even cheaper. Are suggesting they spend the cash. We think there is the best use of them spending the cash. That best use would be buying back their own shares. Shares traded zero point [indiscernible] you do not find a cheaper company. The earnings yield the Company Something like 130 . Why would you not buyback something that is yielding 130 as opposed to investing in new real estate projects where it would be hard to get over 10 r. O. E. . The yield is so much greater in buying back their own stock. Stephen i would be remiss not to go back on your past calls. We have it all in the bloomberg terminal. The refrigerator equipment maker. A great business you called it. It kind of did not do well through the pandemic. I will give you a pass on that. I want to talk about sony because you did all right in 2017. Sony shares are up 88 after you made the call in 2017. Do you like tech in these high valuations right now globally and are you sticking with sony on their path . Seth i am sticking with sony. Sony has a Great Variety of great businesses. That is what makes sony so fantastic. It was said yesterday at the that sometimes in decades, weeks happen and sometimes weeks in decades, weeks happen. We went through that. That is why i think you are getting such higher valuations in Tech Companies with the world just kind of embracing technology and realizing those changes were going to happen over the next 10 years happen over the last six months. We see the content that sony owns. All the games that sony owns. I think it is extraordinarily powerful. I think sony is nowhere near full valuation. On a global basis [indiscernible] are fairly bullish on japan. 30 since march 16th. It is still down 6 yeartodate. How much more upside do you see . Seth i think there is a lot of upside. I am very bullish. You have seen a big rally globally. An extraordinary rally in the s p. It is mostly a Tech Companies that have moved. I think you are seeing a transition going on from growth to value. Topics is heavily weighted. Japan is extraordinarily valuable. We have had this Inflection Point rug governance or buybacks are up a lot, dividends are up a lot. That should progress the value seeking to be just a trap but being to value. I am very bullish. Seth fisher from oasis management. We will check back with you in a year. Thanks a lot. Interview. Reat keeping notes on the bloomberg. We are looking very closely at what is happening in indonesia because the jakarta composite index has fallen by 5 , triggering a circuit breaker. This is the biggest drop we have seen since march 19. Before the big selloff we saw globally. This as we see restrictions coming back into indonesias capital, which has surprised analysts and investors and going to threaten to prolong the recovery of Southeast Asias largest economy. A full of 5 on the jakarta composite index. Coming up, the pandemic reaches a new milestone as global deaths 900,000. Donald trump says he played down the severity of the virus to stave off panic. This is bloomberg. Juliette a quick check of the latest business flash headlines. Jp morgan is said to have found some of its employees pocketed covid19 relief money intended for legitimate u. S. Businesses hard by the pandemic. A source with knowledge of the matter says the Bank Discover the actions after suspicious amounts of money were deposited into Checking Account. Jp morgan has fired several employees. The board at rio tinto is said to debate the future of etsy a yellow. Of its ceo. A meeting to decide the fate of the ceo is due this week. Leftay explosions may have stakeholders in Western Australia seeking more action in a state that supplied 90 of the companys firsthalf profits. Barclays is waiting plans to move u. S. Headquarters to hudson yards. The british lender is said to be looking for around half a million square feet of space. Barclays bought the building when the Investment Bank collapsed during the financial crisis in 2008. Ashaad President Trump defending President Trump is defending telling bob woodward he intentionally played down this affair ready of the coronavirus pandemic. The president standing by his inments, which were made june and july. I am a cheerleader for this country. I love our country. I do not want people to be frightened. I do not want to create panic. I am certainly not going to drive this country or the world into a frenzy. We want to show confidence. We want to show strength as a nation. That is what i have done. We have done very well. The president of the United States has admitted on tape in february he knew about covid19 that passed through the air. He knew how deadly it was. It was much more deadly than the flu. He purposely played it down. Worse, he lied to the american people. He knowingly and willingly lied of the threat imposed to the country for months. He had the information. Rishaad for more, lets turn to jodi schneider. A big political issue. How is donald trump defending what he said to bob woodward about the virus, which is on tape so he cannot tonight. Jodi that is right. To y, his playbook is when books come out like this and the atlantic article about the comments he made disparaging the military, he calls it fake news, that he did not say it and hits back at the author. In this case, he is doubling down. He is saying, yeah, what can i do . I like this country. I did not want people to be in a panic rather than talking about the fact of what he knew when he knew it. He cannot deny this because it is on the tape. He is going with embracing the defense of, i did not want to panic people. We will see how this plays out. There is a lot of criticism already. We heard this from joe biden that the president not passing along the information he had about how they are lint the virus was going to be really endangered lives and he could have done something. That is the criticism. Bidente that is what joe is saying about this. Is this likely to benefit joe biden benefit trumps reelection chances . Joena Joe Biden Jodi biden is leading in the polls. In the short run, this likely will help them. The issue of the virus is something that concerns people. On the pollsters ask questions, that is one on which President Trump does not do well. He started doing better and his poll numbers started coming up after the convention when he did his law and order messaging around the protests and what he called the riots happening in many cities across the country. That is an issue that seems to benefit him. The virus and his handing handling, he has done very poorly. This latest revelation from this book will only stand likely to increase that criticism. This is just two months before the pivotal election. Rishaad let me just slightly diverge from that and stay with the virus. What are we learning about the astrazeneca vaccine . Trials being halted or suspended. Some questions are being raised certainly. Jodi it is just a day after the covid19 vaccine trials were halted due to a possible serious neurological problems in one patient. Astrazeneca and its partner in this, the university of oxford, are facing a lot of questions about what causes this issue in this patient and whether it could be related to the vaccine. We have the u. S. National institutes of before congress yesterday saying the trial had been halted due to a spinal cord problem. Real questions as to when the trials may be coming about again. This has been one of the most likely contenders to reach the market in the near term. They had as many 50,000 as many as 50,000 participants being enrolled for late stage trials in the u. K. , u. S. And other countries. This shows the difficulty in getting a vaccine approved and to market. The hopeful signs, not always so hopeful. It takes a loan time and is a comic aid process. We are seeing that with the astrazeneca vaccine. Rishaad jodi schneider, Senior International editor. Getting to the open in india. Lets have a look at how things are going in mumbai. Looks like we have a positive start to the trading day as we do in the rest of this part of the world. It is the first day we are seeing advances, declines from the last two. Of thens the week options expire recession on a strong note. This is bloomberg. Almost an even split. 12 out of 21 analysts expected malaysia to keep rates steady as the economy recovers. Lets get more on what to expect with michelle who joins us from singapore. What is the case for Malaysia Holding steady on rates today . What else could they do . You are right. It is a pretty slim majority. The case comes out of a few things. In each of the four decisions, they did already cut. There is an argument for allowing those to continue filtering through the economy. Malaysia is not as close to zero as some others in the region. Someght also want to give room for fiscal stimulus to make its room through the economy. Allege has been one of the more aggressive in the region. On the positive side, a bounceback in Economic Activity has also given the case come up giving policymakers room to breathe. Everyone around had a disastrous second quarter. Malaysia started listing mobility restrictions in may. We are seeing less of a stranglehold on demand in alleged in the economy. If the virus remains a little bit less of a threat, other parts of the region could allow for breathing room for policymakers. We are not totally out of the woods. I would still be looking for any signs of what would trigger responses we have already mentioned the reserve requirement ratios that could support liquidity in the financial system. We will see what their read is. It looks like they might have room to hold still for now. What does this say about the Economic Outlook for malaysia through to the end of the year and does this mirror what is going on originally . I do not think anyone wants to pin two solid that is on the economic coverage because it is fragile and depends greatly on the vaccine and further virus outbreaks if they have them. We did see in recent days, a triple digit case growth in malaysia, which was the first in a long time. We have to be careful about protecting on that front. One thing to watch will be inflation. Any Stricter Health and mobility measures if they are reimposed could be a bigger hit to demand and price growth. Debt has been less of an issue since they raised the debt limit. If they do have to provide more fiscal stimulus, that might be more of a conversation. That has been a hot topic of conversation about how to finance that. We will be looking at all those things. Sayingt recent estimate the bank of malaysia is in for a contraction of 3. 5 to 5 . It could beif better than that if things hold and are not many more threats to the economy. Rishaad thank you very much. Zure action seizure senior asia correspondent. We are seeing gains for the first time in three days. Some options expiring as well. Some positivity coming from the diffusion of tensions between beijing and new delhi. That could be helping indian markets. If you look at the top, the big loser and bucking the regional trend is indonesia. On the way down. We have a capital bringing back social distancing measures. The nascent recovery i risk. Oil prices currently down. We are looking at signs u. S. Stockpiles are swelling. We have yum china on its debut. A bit of a disappointment. Down nearly 5 . This is bloomberg. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. The following is a paid program. 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