Transcripts For BLOOMBERG Bloomberg 20240702

To see any sort of intervention in the session today . Did just get more jawboning, across from the japanese finance minister and even he seems to recognize that his comments at ba you, because he has put out a statement saying he is watching fx moves with a high sense of urgency as usual. Something he has said in the past but we will watch for a more concrete action coming through the end, holding above that 150 mark. It is really a function of the yield gap between the fed and the boj. You can see the 10 year yield just coming online fairly steady but at that level you are around six times higher than the counterpart in japan. The ggp 10year at yields. A stocks wise traders are focusing in on those bond market moves. And corporate earnings. You just mentioned meta but shares sliding and you can see that after hours move their down around 4 . The warning amongst others and on the economic outlook, so not a great lead into the session today. It is not just earnings in the u. S. There are also corporate earnings. In korea as well, we had sk coming out so just tracking that stock as it comes online. Another drop as you can see around the 4 mark. The key thing to take away is that the sales decline slowed in the Third Quarter so we still saw a revenue dropping down around 17 but it is an improvement from what we had in the prior three months because that was a 47 drop. It is another sign perhaps the worst of the Semi Conductor sector slump is passed. It still you are seeing those picked up declines coming through in the tech heavy, because doc in particular coming down at this point in the korean won a little weaker. In australia it we are one hour into the session and it sub index that is leading declines. Down quite significantly past what we see for the asx 200. We do as well continue to keep an ion what is happening in the 10 year yield and aussie dollar. Expectations around what we are going to see from the rba next week. Will it be a hike, a hold. We have been hearing from Michelle Bullock the rba governor saying Third Quarter Inflation Numbers came in as expected. A quick note on what we are seeing in oil markets, brent crude really almost on the 90 a barrel mark but we have seen geopolitical risk rising again because the israeli Prime Minister netanyahu reiterating plans for a ground assault. Timing on that not clear but another watch for us. The focus today very much on earnings, wall street and korea. Sk hynix has delved into that because annabelle was just telling us about the moderate decline in revenue for the Third Quarter. A sign we are seeing a little recovery in the global Semi Conductor market. Lets break down the numbers, revenue was down but the numbers were not as bad as expected. Walk us through the Key Takeaways here. Good morning, there were several positive areas from sk hynix earnings released this early this morning. One is even though the operating loss was slightly bigger than expected there was still smaller than the previous two quarters and one of the key Business Risks was the business, it made a turnaround from the previous two quarters of losses. The company also gave slightly optimistic outlook for the future saying that the business is expected to see a recovery Going Forward in the pace of recovery may gain speed Going Forward thanks to the popularity in the generative ai business. Sk hynix also said its business might see a slight recovery Going Forward which might show the recent output cut by the global memory chip makers may be giving a push up to the global memory chip prices. However it remains to be seen whether these positive points from the Earnings Report could push up stock prices of sk hynix this morning because we have some negative news coming from the u. S. Including the tech stock losses overnight. Higher bond yields, higher yields and u. S. Treasuries and strong dollar. So whether sk hynix investors pay more focus to the positive areas from the Company Remains to be seen. Paul sk hynix shares outperform Samsung Electronics, why was that . Is that going to be the start of a trend . Youkyung this was a really interesting trend that we have seen and south korea and investors have been telling me that this was really unfamiliar. Samsung electronics is a digger rival but also we saw their stock prices move in line with the memory chip sector. Memory chip prices. However this year we have seen sk hynix gaining a lot more than samsung and that is because sk hynix advanced in the memory chip which is really crucial to the generative ai technology. Sk hynix is a key supplier to the hb chips to nvidia and that has been one of the key reasons their share prices have been outperforming rival Samsung Electronics which investors see as somewhat falling behind in the race for the high bandwidth memory chip that are supplied to key clients such as nvidia. Whether this trend will continue will depend on whether samsung can play catch up in the business. Some analysts have been telling me that samsung might be able to reduce the gap Going Forward but it largely remains whether samsung will be able to secure clients in the ai area. Shery sk hynix up 70 this year versus 20 for samsung so really a big outperformance. Asia stocks reporter there. For todays session it is all down, down, down. We are talking about losses for sk hynix. How are its suppliers doing right now . Annabelle they are really tracking the losses we are seeing for sk hynix. You can see that drop and you were just talking about the reasons why it could be coming under pressure but it is also supply at focus because Tokyo Electron is the biggest and you are seeing that feeding across. Even though there were perhaps signals coming through on these earnings that the worst of the chip sector slump could be passed, it is a down day for tech stocks broadly. When i took take a look at the map function you can see the i. T. Index is leading the losses for the benchmark so far. Lets take a look at some of those names in more detail in the tech space because we have names like softbank, sony coming under pressure in tokyo. Just under 10 minutes into the session. We did have alphabet, that big drop in the prior session down the most since 2020. You just mentioned meta as well and a bit of warning about the economic outlook. We are seeing metadeclining in after hours trade, quite a bit of bearish sentiment feeding through so far with trading underway. The broader index down around three quarters of percent at this stage. Shery lets bring in our next guest who says it is unwise to be exposed to too many risk assets if you can stomach the volatility ahead. With us now as chief global strategist at nico asset management. Great to have you with us, with the geopolitical tensions around the world not to mention higher for longer coming from the fed and these corporate earnings that have come out really volatile how do you position defensively especially if you are bracing for volatility . John as you mentioned longterm investing is not the way to go is the way to go but if you are having sleepless nights its going to be volatile for a while and you might want to reduce some of your risk. You mentioned also the earnings season in the states and in this case it is pretty strong. It is just the guidance that is scaring some stock investors but this happened last quarter and earnings came out and the Third Quarter to be quite good so it is not too much to worry about as far as im concerned. At this point. Shery you like Japanese Equities, japanese yen 150 level against the dollar. Is this too weak for some policymakers in japan . Are we going to see some changes . John i dont think there is anyone in japan that really wants the yen to get much weaker. I was pretty convinced they were going to intervene at 150 and there has not been any sign of that. But we could see that ahead. And it is certainly bounced off 150 twice last few weeks so will have to see. But its true the interestrate differential is becoming harder and harder to fight against. As for Japanese Equities, yes still positive on them. They have not outperformed in u. S. Dollar terms the rest of the world in the last year or two so it is not like they are overbought. There is a lot of foreign Interest Rate now in Japanese Equities but certainly valuations are not high at all and structural improvement in corporate governance, improving Profit Margins, all of these things are still moving ahead which is quite good. Shery how do you feel about japanese automakers because they really benefited from the United Auto Workers strike in the u. S. We are now hearing we could see a tentative deal being announced any moment now with ford. John that would be great if there was a deal for the u. S. Automakers. Its going to be a very expensive deal for them but for japanese and other foreign automakers either the exports to the u. S. Or their nonunionized factories within the u. S. , it has been a bit of a boon. So Profit Margins look good for all of those companies because pricing in the states is still very firm for autos. You have got the ev factor where there are more and more doubts about the sustainability of a full eeev country anywhere in the world Going Forward given all the connections with what is going on with some of the Raw Materials and whatnot. That benefits toyota in particular because it is really the master of the hybrid automobile so many people benefit many people will prefer hybrid autos over evs which are kind of piling up in inventory. Shery the tech earnings season has been mixed at the moment and we saw alphabet, also meta being punished. Does not make sense right now, is it just a matter of valuations and if that is the case is this just a better result in the sense that they are being punished by valuations not necessarily because their business is doing badly right now . John there is some of that. Any stock that has been through hype and valuations have gone to very high levels, it gets punished. Unless its a Earnings Guidance and performance are very good. And we have seen that to some extent with some stocks but yes, earnings have been quite good for most tech companies. There have been a few exceptions but for the most part they have been quite good and it is kind of shocking to see how badly they are punished for relatively minor infractions. Shery good to have you with us chief global asset strategist at nico management. It still had j. P. Morgans global head of Payments Joins us live to discuss the future of fintech as the bank explores Blockchain Based digital deposit tokens. First Morgan Stanley names tech pick as its next ceo, more on James Gormans successor next. This is bloomberg. adventurous music be ready for any market with a liquid etf. Get in and out with dia. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Shery we have breaking news, we are hearing that Nomura Holdings are over after China Businesses losses theyre snowballed reflecting setbacks by japans biggest brokerage to expand on the mainland. We are hearing the joint venture is reassessing its strategy according to people familiar with the matter. Goals unveiled four years ago to raise its head count to 500 and become a fully licensed security house by the end of 2023 are unlikely to be achieved according to the people speaking to us. Orient International Security has already cut jobs and has seen a number of departures following a management reshuffle earlier this year. We will be watching their stock down half a percent at the moment. Paul Morgan Stanley has selected a pic to become its new ceo and succeed the previous, a three decade adventure in the firm and copresident will assume the position in january and will also join the board. For more on this where joined by our finance editor adam. A very much a known quantity, what will he bring to the role . Adam a number of things, i think if you look at his history is how he has revamped a number of businesses along the way. If you look back to what he did with the equities, the trading business back in a tumultuous period of 2008, it really gave that a fresh start and made some significant cuts and boosted the profitability of that business. If you look coming on the 2015 and what he did with fixed income he made similar improvements in terms of redesigning the business and making a lot more relevant to Morgan Stanleys customers but also to the profit of the bank as a whole. One of the big things, although he was always thought to be the likely successor or one of them, some have raised questions that he has only run the smaller areas of Morgan Stanley and gorman himself has said if you follow that line you would have never hired me in the first place. Clearly he has backed him and as we heard from our reporting, the first interview with pik since he was named ceo it was pretty clear staff gave him a standing ovation and working to get behind him. So 54, a lifelong Morgan Stanley employee. He has been through a number of iterations of the bank and understands of the change ahead, the big focus for him will be the continuation of the growth of the Wealth Management business which has become a real driver of Morgan Stanley profits as of late. Of course quite a few headwinds are building and one of those is losing market share to some big rivals like goldman and j. P. Morgan and of course the stock price is still very depressed down 16 this year. Shery what is James Gormans legacy here and what role will he have at the bank . Adam well pit comes in as ceo in january but his legacy cannot be understated. He oversaw the bank through the period of intense turmoil with the Global Financial crisis in 2008. Then later a number of other crises that came out, specifically our cagles Capital Management and their almost 1 billion loss that Morgan Stanley made in relation to that and that was a huge pr rebuild for gorman. He has faced a number of challenges, built Morgan Stanley into a bigger business than it was when he took over and that will really be his legacy. One of overwhelming success for most people. Shery our finance editor there. Deutsche bank is starting another round of job cuts as part of an effort to lower expenses and lift profitability. It ceo says new measures are expected to secede previous layoffs from six months ago. Despite the recent cuts the german lenders headcount has grown by more than 4000 this year. More coming. Were going to continue to work with discipline, we have laid out to investors a goal to run the company essentially flat for a considerable period of time. That means is we are working every day on Cost Reduction measures which at the very least should offset the impact of inflation. And also allow us to invest in businesses with our own resources. Shery ubs is expanding its coverage of small and Mediumsized Companies as part of its efforts to move up the rankings. Two Equities Research in north america, according to a memo ubs and analysts Analysts Expect a coverage of over 370 stock since 2022. The majority of which had a market value of over 10 million. The moves are help meant to help ubs become a top competitor in north american Equities Research. United overseas banks thirdquarter profit expanded on higher lending and strong fee income from wealth and credit cards. That income excluding oneoff items rose 5 to just over 1 billion from a year ago. You obese ceo warned the recent geopolitical tensions have added to market volatility but expect Southeast Asia to remain resilient. Of course we have earnings season here in the u. S. As well. Now to the latest on that after the bell result from meta. It shares reversed an earlier rally after reporting revenue that beat the street and a rebound in its core advertising business. Shares turned negative once investors heard the outlook. Su keenan joins us now with the latest, what was the issue . Su there is nothing like using the word uncertainty and volatility in your outlook and big spending ahead to throw cold water on a rally based on eight thirdquarter beat but that is what happened here. Metas cfo killed hopes of longterm recovery saying quote we are subject to volatility in the macro landscape. The revenue outlook for 2024 is uncertain. The shares which have been rallying in extended trading initially up more than four or 5 slid more than 3 as execs talked about macro concerns. That is results appeared to have shown a nice recovery from the strugglers struggles in its ad business. Thirdquarter sales of more than 34 billion handily beating the street, they also reached 2. 09 daily active users on the flagship facebook app. Metawith big spending ahead has been working to convince investors that it is doing a good job balancing it spending in future tech like ai and vr while ensuring its core ad business is growing. And after posting its first revenue decline last year the stock suffered a very bad year, its worst ever and investors started to show skepticism about the company strategy. As a result metait rained and costs, laid off employees and that has worked to turn around its declining revenues in the face of a number of challenges. Such as its rise in litigation costs and after this upbeat Earnings Report it seems investors are a little caught off guard with the words about an uncertain macroeconomic future. Paul so you mentioned expanding their spending their what is the story with that when it comes to ai . Su they had very ambitious plans about a number of different spending plans, particularly having to do with ai. Mark zuckerberg was incredibly enthusiastic about what is going on with the money losing Virtual Reality division, reality labs. He is particularly enthusiastic about the companys new ai chatbots. He explained why it is so awesome to work intact. He was an ultimate geek mode. But said it is too early for monetization. He says users will be able to message with ais chatbot to play games, connect or engage with favorite creators. He says this is very different than openais chatgpt which everyone is competing with. Metaprojects total expenses to be as much as 99 billion in 2024 driven by hiring and its ai infrastructure. Reality labs and compliance and the Company Still expects to lose money in reality labs. Which is all about the metauniverse. Shery su keenan here with the latest earnings from metaand you get a round up of the stories you need to know to get your day going in todays edition of daybreak. Bloomberg subscribers go to dayb also available in mobile on the bloomberg anywhere at. You can customize your settings so you only get the news on the industries and assets that you care about. This is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh the chase ink business premier card is made for people like sam, who make everyday products, designed smarter. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. Shery take a look at how european futures are trading at the moment, it is downside across the board given that we are seeing this selloff in Global Equities also as we had seen u. S. Treasury yields resuming their climb. We saw a lot of volatility in the regular session in europe as well. We are really setting up for that ecb rate decision, the expectation is for a pause in Interest Rate increases on thursday, this is we heard from the ecb president Christine Lagarde saying the battle to contain Consumer Price gains is not over but she has confidence they can be returned to percent. We have more to come, this is bloomberg. Shery we have breaking news, the United Auto Workers labor union announcing through a post on twitter that they have announced a tentative deal with ford. They are that record profits mean record contracts. We have a tentative agreement at ford, that post coming from the uaw. This after six weeks of strikes and as ford is preparing to release their thirdquarter quarter earnings on thursday. We had already seen General Motors falling back pulling back their fullyear Profit Guidance due to the uncertainty around the strike but bloomberg have learned earlier that the deal with ford could include a 25 wage hike according to sources speaking to bloomberg. But that this was pending under Union Leadership approval and finally we have an announcement through twitter that they have a tentative agreement at ford. We continue to watch tensions in the middle east President Joe Biden saying he asked israel to delay a Ground Invasion of gaza to assist in the return of hostages by hamas but he asked that he sought no assurances from netanyahu. Biden no. What i have indicated to him is that if it is possible to get these folks out safely that is what they should do. It is their decision but i did not demand it. I have pointed out to him if it is real it should be done. Annabelle shery for more lets bring in Bruce Einhorn. We had heard from Prime Minister netanyahu in a televised address they are still preparing or a Ground Invasion so where we at . Bruce as we just heard the president is encouraging israelis to hold off. There has been a lot of concern about what the plan would be if israel were to do a Ground Invasion even if they were to succeed even after ousting hamas , a tough task itself. What would come next. There is pressure from the americans to hold off, also to allow more humanitarian assistance to get into gaza. There is a lot of pressure from a lot of others including the secretarygeneral of the united nations. Many other countries around the world calling for action to help alleviate the humanitarian crisis in gaza. Paul we also have the election of a speaker finally in the u. S. It is going to be mike johnson holding the gavel. This is going to have implications for aid to israel. Is this going to more broadly unclog the legislative agenda or is this just the start of a new set of trouble . Bruce that is a very good question. At least there is a speaker now so congress can begin functioning again. There is a deadline that the new speaker faces, of course november 17 which is when the deal that Kevin Mccarthy pushed through, former speaker pushed the earth. Which ended up costing him his job. That extended funding for the government temporarily. The new speaker johnson opposed that deal last month. He has now said though that he advocates for an extension some time into next year to allow negotiations to continue. In the past he has also expressed skepticism about aid to ukraine however recently he has said that he would be open to negotiations with President Biden about that. Paul Bruce Einhorn there. Lets take a look at what is moving on the markets at the moment. Plenty of action today. Annabelle that is right. Just a couple themes i want to touch on this morning. The first is what we see in the bond space because overnight we saw yields moving higher again for treasuries. We had a weak side of the auction, better than expected new home sales for september in the u. S. It really reinforces that narrative that the fed will need to keep rates higher for longer. That is the reaction we are seeing today in the bond space. It is that picture of yields tracking the moves from the u. S. Session. Higher yields also leads to a firmer dollar and you are seeing that currency weakness again playing out in the session today. The japanese yen was earlier here but i do want to note that the japanese yen is trading at 150 or above that to the dollar mark. We will have more on the fx market in a moment. I will just move on to equities just to say a half an hour into the session for korea and japan, also 90 minutes into trading for australia is that broadbased losses coming through. Tech stocks in particular i want to note because you can see the kospi theyre standing out. Quite notable that lost their also down 1. 7 . Lets change on talking through the reasons for that because it is important to note that the kospi is most correlated with u. S. Markets and where the nasdaq goes. You can see that, futures here are still building into further losses after we saw a near 2. 5 percent drop for the nasdaq in a prior session. Sk hynix as well, we saw sales declined moderating in the Third Quarter. Still not enough to boost the stock because it is really dropping and that is what is dragging the index. The focus very much on earnings. Those numbers coming through in the and also what we are seeing in the currency space this morning. Paul absolutely we have seen the yen slump back past 150 per dollar again and this is piling pressure on the boj ahead of its policy decision next week. For more on all of this numbers fx and rates reporter Michael Wilson joins us now. Lets start with the yen and we did here from suzuki of the ministry of finance today saying they are watching this with no surprise. Are we going to see intervention and if we would would it matter and would we even know . Michael i think we will know. I think as far as it would go is just a little jawboning or if we remember back on october the third there was rumors of a rate check where they rang about how the banks in new york and it was quite a violent move. I think from the previous high of one 16 to 147 30. That was just on rumors of a rate check so that is how sensitive the market is, still very high. Fast forward to today. It is so far out that i think there is probably a little too close to the bank of japan meeting and the possibility of why cc, to which i would say the bank of japan would be probably wise not to weaponize the tweaks to any why cc controls because the immediate effect, yes but they would be better off letting the wage price kick in and then they would be justified in not tearing the bandage off all at once. It would be a pretty aggressive move by them but it would be well justified. But for today i think the market would probably wait for that mof intervention done for october and if they dont, if they have not intervened in october that could be seen as a signal for people to get the dollar even above 150. And that could push on and push the market towards 153. There are a lot of other option structures in the market, i think 5 billion almost at 150 as it is. I think the market might bounced off of that and they will likely hold, if the ministry of finance wants to intervene they would be cheering all the way along the boulevard because it would be immediate profit for them for carrying that along. Other than that i think the market is probably going to wait for the gdp print tonight of the states. The fed is a hot number that will fuel the 10 year spread of jgbs, higher still. And if we press on like that that is going to galvanize the dollar along so maybe up a little more before it goes hectic after the bank of japan on friday. Shery what is happening with the aussie dollar because with such a strong inflation print i would assume that it would get stronger. So why are we seeing this weakness . Michael we had a set of testimony by governor bullock this morning around 7 a. M. And she opened up by saying the hot rate or what everyone thought was a pretty hot cpi print was about what they were expecting. And it sort of poured water on rba height hike bets. If you look around the expectation is still around 40 . Maybe a bit more but wherever they go on tuesday, whether that happens, i am not sold on they idea especially yet. Having said that i think bullock might have boxed yourself in a little bit because she said she wont hesitate. But now she has created this new narrative which is what we got right now, is it enough for her to pull the trigger on a rate hike at the policy meeting on november 7 . I think the majority of still split on that one, if they will go all in on the trade. Shery bloombergs fx and rates reporter Michael Wilson there. Indonesian election season has begun with investors watching closely if the next government will continue or append a president ial key policy. He spoke about the countrys ambitious growth plans in the First Episode of latitude with haslinda. If you are proud that you have a bullet train when even the u. S. Does not have one . Yes. It is just one of dozens of aggressive Infrastructure Projects that the president sees as a way to meet his ambitious growth target. It came at a high cost, 7 billion . Overruns of more than 1 billion, is it worth it . But profitability does matter. How do you ensure that state owned companies, that the government are not settled with debt that cannot be paid back . Before all these were started there were studies there were calculations all were calculated. Paul you can catch the full interview on the premier of latitude on thursday at 8 p. M. Hong kong time. Up next we will be speaking with j. P. Morgan on their Global Payments strategy and the sort of Business Opportunities they are seeing in asia. This is bloomberg. Paul j. P. Morgan payments says the banks Digital Payment platform and it generates 10 billion worth of revenue. It is one of the largest Payment Companies in the world and it in more than 100 60 countries, and 120 currencies. The global head of payments at j. P. Morgans joining us now to discuss their strategy for asia. Some impressive superlatives for j. P. Morgan payments. What are the growth areas you are looking at right now . Takis thank you very much for having me and it is always great to be in asia because asia is the part of the world which has probably the most exciting opportunities. You talked about the 10 billion in revenues, the even more exciting part is the 10 trillion in dollar payments we make every single day. We think of those in three categories. One is the Global Infrastructure that connects every country and every currency around the world. Then there is software and data as a service that we provide for our clients in different industries. And then we are looking at embedded finance products that allow consumers and merchants that operate in the worlds global marketplace and ecosystems to interact. We see a lot of changes in particular and asia and singapore is very much at the center of all of that. We look at realtime Payment Systems in india and china, hundreds of millions of people getting access to Banking Services for the first time. We see a lot of innovation around Digital Currencies. We have partners here in singapore with a digital rmb in china. A lot of companies doing new and innovative things around the region. So it is always exciting and interesting to be here. Paul are you finding that ai is disrupting and generating some innovations in what you do as well . Takis sorry you asked about ai . Paul yes that is right. Takis yes so ai is not new for us. We continue to use Machine Learning models given the volume of payments we do every day, it is about 50 million payments. So using Machine Learning models so that we can train our systems to identify fraud, do screening more efficiently and move money more efficiently is not something new. What is new is generative ai and Large Language Models which we think will accelerate the volume of change and innovation that we have seen in front of us. And also make it easier for consumers to interact with our technology. Paul will you tell us a little bit about jps claim, what is their ambition and making that more widely accepted and used . Takis as i said we move 10 trillion every day all around the world and we are always looking at what are the inefficiencies of the current Payment Systems that we could improve upon. I think there are three major inefficiencies. Number one is speed. There are delays in making payments, especially crossborder payments. The second issue is money and information move separately which makes it hard to reconcile , to change, understand and track. And the number three money is fungible whereas our activities are not. The reason why we created the jp coin and in general we are looking at Digital Currencies is as a way to solve those three issues. What we do with jpm coin is the institutional side of that solution. Working in a permission to environment with companies that are trusted, and trust each other so that they can move money within their ecosystem 20 47. And today we move 1 billion every day through the jpm coin for a number of Large Companies including here in singapore as i mentioned with our project. The next step in that journey is to think about how you can create a more retail version of that so that you can bring that same efficiency to consumers and obviously central bank Digital Currencies are one way to do it but also there is an opportunity for banks to create commercial versions of those deposits that work like deposits but because they work on a distributed ledger and work on Digital Currencies they bring the same 24 7 efficiency. At the same zero cost instantaneous transaction and the same ability to program how the payment takes place. That is the next generation for us for innovation and that is what our deposit token aspires to do. Paul so you are there in singapore and have run a Pilot Program with the Singapore Dollar and deposit tokens. Off the back of that where are you looking to expand, which other currencies are you looking at . Takis already our partner here in singapore is a multicurrency network. Through our partners in addition to ust there is also Singapore Dollar in euro etc. That will continue to expand. We have a pretty Similar Initiative in gift city in india also thinking about using blockchain for the ruby dollar. And then as i said we have about a billion dollars of jpm coin that gets transacted on a daily basis. Mostly in ust but again we intend to expand that. Paul all right, global head of payments at j. P. Morgan. Thank you for joining us. Now you know mira is set to be overhauling its China Business after losses there defend. Sources there say its goal of raising its head count of becoming a fully licensed security house this year are unlikely to be achieved. Our asia investing editor russell has more on the scoop. What changes might be in store here . Russell just casting back to four years ago when they set up this venture, the situation was very different. It was before covid and china was opening up its financial industry to foreign players. The likes of goldman and Morgan Stanley were piling in and a number of them thought this was a great opportunity to diversify revenue sources. They set up this joint venture and initially it was to focus on Wealth Management and they were going to end up becoming a full Service Brokerage and Investment Bank by the end of this year. With a head count of 500. It has not turned out that way unfortunately. Obviously covid intervened, the economy is slowing. Nomura, the headcount is only about half of what it was and they have been cutting jobs recently because it has been losing money. The losses have expanded every year. There is still only about 31 million of losses. That is not a huge amount but in relation to other banks that are also struggling, foreign banks are struggling in china they are relatively quite big. It has been quite a setback for them and they are now looking to revisit those plans. Shery tell us a little more about that business with know mira oriented international. You talk about some of the losses but what sort of headway did they make in the Chinese Market . Russell they chose to start out with the Wealth Management business and that has been a bit of a struggle to sort of differentiate from the investment players. It is very competitive there and they are acknowledging that this is quite a domestic business and really probably what they need to do is leverage their uniqueness as a Japanese Bank with japanese markets booming. They want to look at more crossborder business, this review is at a very early stage at this point is what we are hearing. But the focus on domestic Wealth Management, i think they are acknowledging that is probably not the way to go and they really need to revisit that and leverage their strengths as a japanese Investment Bank. Shery asia and investment editor russell joining us there from tokyo with the latest on nomura. We have more to come on daybreak asia, this is bloomberg. Its easy to get lost in investment research. Introducing j. P. Morgan personal advisors. Hey david. Connect with an advisor to create your personalized plan. Lets find the right investments for your goals okay, great. J. P. Morgan Wealth Management. Shery the United Auto Workers has reached a tentative Labor Agreement with ford after nearly six weeks striking. Bloombergs gabriela coppola joins us now, it seems that they were granted the 25 percent wage increase that uaw was seeking. What else stands out . Gabrielle one thing is that uaw president was just giving a summary for his membership, he compared it to the last negotiation in 2019 and he said this is four times more valuable than what the company gave up in 2019. I think that just speaks to the tremendous leverage and pressure that this new uaw leadership has been able to put on the companies. The whole uaw was reformed they have a new slate of judicious leadership of the top and they are really tapping into this resurgence in the labor movement. To put that in perspective, what else. The new starting wage is going to go up over the life of the contract to 28 dollars. That is a 68 increase. The autoworkers often rely on a sub workforce of temp workers they get paid were less paid less. Those temp are going to get a raise there is more money for retirees, there is more money in 401 k s. They did not even touch health care. They may not have gotten their Health Care Like a lot of us do, on their application people get an 11 wage increase right off the bat. With inflation being as troublesome as it is here in the u. S. That is important for people because that is something you hear on the picket lines here in detroit all over the place. Shery we will have to leave it there bloomberg auto reporter there with the latest on the uaw ford tentative deal. We have breaking news at the moment. We are hearing from reuters the President Biden is expected to speak with chinas foreign minister who is of course visiting the u. S. The conversation is expected to take place on friday according to reuters. We know that the foreign minister has been in washington and will be here from thursday through saturday. He is going to meet with sec. Antony blinken not to mention the National Security advisor Jake Sullivan as well. This could be a potential prelude to a meeting next month between President Biden and xi jinping. For now the president will be meeting with chinas wonky long lee on friday. That is it for asia are markets coverage continues, this is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. The chase ink business premier card is made for people like sam, who make everyday products, designed smarter. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. David this is my kitchen table, and