tv Bloomberg Markets Asia Bloomberg March 22, 2017 11:00pm-12:01am EDT
as we just talked about there, there's a bit of a risk factor coming back into the markets. there was a lot of talk on tuesday into wednesday that it might be the start of a correction, a healthy correction, maybe 5% or he does not happening at the moment, u.s. futures are getting good quite decently at the moment. we are actually seeing this very interesting dynamic between where currencies are going and equities are going. it's good to take a step back at the moment and really look at dollar-yen. when you look across the currency state, the most pronounced move in the past 24 hours has been the dollar-yen breaking the low-key support levels. you are looking at the core relation between dollar-yen, and that pair and the topics index. weakens,ow, yen japanese stocks go on the way
up. when you look at this chart, this is 7040 on your bloomberg. the correlation swings. -- swings when you have dollar-yen at fairly extreme levels. it weakens us we move into the midpoint where we are at the moment. a lot of calls coming through because we are entering the end of the first quarter. dollar-yentually see move lower a bit further at these levels. it's not good, but he could be worse for japanese equity. these influxest coming back into the emerging markets here in asia, none benefits more than south korea so far. here is the index, about inflows coming in. we are looking at 3 billion now year-to-date. as you can see, there's a close correlation between the amount of money coming in, where the
index goes and how strong the currency gets. one message from this is that local funds have taken a step back. it's a very good indicator that btv#.tv # -- g in the meantime, here is ross with your first word news. >> british authorities are working on the assumption wednesday's attack in central london was inspired by quote, islamist related terrorism. three people were killed when a to pedestrians on westminster bridge. he fatally stabbed an officer before being shot and killed by police. people were injured. the head of the counterterrorism policing says investigators think they have identified the attacker but would not give further details while the investigation continues. >> i will not comment on this stage of the identity of the hacker -- hacker. first working assumption was he
was inspired by international terrorism. >> prime minister theresa may describe the attack in london as sick and depraved. the prime minister pay tribute to the victims and urged people not to be afraid. >> the values are parliament represents, democracy, freedom, human rights, the rule of law, command the admiration and respect of free people everywhere. that is why it is a target for those who reject those values. the let me make it clear today, as i have had cause to do before , any attempt to defeat those values through violence and terror is doomed to failure. >> she saw the makers will meet in parliament on thursday. many of the roads in the area remain closed. global news 24 hours a day, powered by more than 2600
journalists and analysts in more than 120 countries. i'm rosalind chin. this is bloomberg. the chinese premier one of our top stories. he was speaking at a parliament house in canberra to start. china is looking for openings following the u.s. decision to abandon the tpp. we are joined by our correspondents watching this out of beijing. we also have paul allen, who is in sydney. paul, tell us what leaders have been discussing there. paul: the first thing they discussed, the premier li said the terror attack in london, they were united in their condemnation of that. the subject did quickly turn to trade. now the speeches at the lunch that was just given at parliament house, the australian prime minister, lord of the
robust, fruitful partnership and the chinese premier said in a world where protectionism is rising, we cannot close our doors. he went on to say there are problems with globalization, but it's all about how the world response to that. it's not about walking away from it. he said china would not seek to dominate the region, it was in favor of freedom of navigation, and talked about the australia-china relationship is always having to move forward and he's very pleased to be here, david. let me ask you what china hopes to get out of this trip. they were giving speeches throughout lunch. concerned,hina is what do they hope to take home, back to beijing and elsewhere? paul wasing on what saying, part of it is symbolic for china, to continue to try to show themselves, particularly regionally, that they are open
to trade and they are this advocate for globalization, though some may take issue with that characterization. of course, there are the deals that china will want to be inking, i talked about wanting to pull in more exports from australia. aboutked in an editorial how growth that has been seen from australia in terms of milk beef productsand picked up as well. there are areas he wants to get more cooperation on, more growth. he talks about the mining sector . he wants to work on infrastructure, agriculture. and there is the foreign policy. it has been suggested that china may want to have some impression on that, at least put forward their case in terms of priorities that australia will be sending out for itself in terms of international relations and diplomacy. quickly, knee-jerk reaction, has there been any so far? >> the house has been played
up. we have had one editorial saying it is time for canberra to take a more realistic approach to its relationship and balancing act it has to play between the u.s. and china, saying as the u.s. pulls back, this should now be the position that australia should look to strengthen with fhcichina, and it doesn't need e a quid pro quo, that they need to have this strategic security alliance with the u.s. , this incredibly important economic and trade relationship. china being the biggest trading partner for australia. >> on tom's point there, tom talked about a lot of the things china hopes to get. chinaanything specific on tradet we should be watching out for for the next 3 1/2 days? verys, the premier got specific. he said we will continue to
import more from australia, including chilled beef from australia. that is a wrinkled from the free trade agreement that was signed about 3 years ago. currently most of the australian beef that goes into china is frozen. there are factories in china that are licensed to export fresh beef. that is something that will be mentioned, something over the commentary leading up to this trip and australia focused on as well. the prime minister says the next stage of the china free trade agreement will be announced. also intends to open up a new stage, innovation, services and science as well. there will be a signing ceremony on friday, and we will probably hear a lot more about the subject leading up to that. >> absolutely. i was paul allen live in sydney. the chinese side light out of beijing prayed we will be discussing more about the economy and china with our guest. he's president.
we will talking about that and other implications. that interview that is coming up in just under 5 minutes from now. time to check back into the markets. coming through this thursday. jules? >> yesterday was -- see a bit of a blip. we have seen markets coming back. about 3/10 of 1%. cpoper higher by 5/10 of 1%. we did see that weakness coming through in copper in the last couple of sessions. by 2/10s sex 200 is up of -- australia's sfx 200 is up by 2/10 of 1%. they were the markets week hit hard during yesterday's session. we have seen the nikkei on that lunch break up i about 1/10 of 1%.
the japanese yen being sold up -- sold off against the dollar. trust me on that one, down by about 1/2 of 1%. a little bit of weakness coming through in those safe haven assets that were in demand yesterday. this is a three-day chart of the and it is also rebounding, coming back, still holding above that four dollars a barrel mark. that will help out a lot those energy producers that have been coming under a lot of pressure. you can see in hong kong and also in sydney there has been some good movement coming market cap,erms of one of the best performers on the regional index today. having a look at -- we're seeing energy stocks by -- up by 1/3 of 1%. utilities also looking good. consumer discretionary up about 2/10 of 1%. we have been reacting to a lot of these earnings as well, 10 sent one stock in hong kong that
has been under pressure after its cost blowout. generally we are seeing a lot more positivity coming through in today's markets. investors also awaiting janet yellen path speech later today. david? david: thank you. looking ahead this hour, we will be asking what he could do next. this is bloomberg. ♪
twin-r planes for longer-term growth. sub have beena suspended in hong kong after sources said american airlines is in talks to acquire a stake in the chinese carrier. we're told it involves an investment of roughly 200 million u.s. dollars. it could allow as stronger .merican presence , the less close on wednesday after the government was said to be ready to sell to be lots later this year. this new etf would be larger than a fund back in 2014.
the government bonds between 7% and 12% of the three companies. now, global growth hasthe gover% and been seen as the key driver for a lot of the prices. when you look at what is happening in china -- our next guest says you look at many fracturing in china, it has dragged prices of many a raw material grower. in the president, and a bloomberg view columnist usually based out of austin, texas joins us today out of singapore. thanks for coming on the in prom . let's get straight to it. have a chart with me. these are the private gauges of pmi out of china. i put them together with an official gauge to show our viewers where we are as far as votes are concerned. this chart is the single most important determinants of where we go. why? >> that's right, david. the most important thing is china, if we think of it as the world's factory, and chinese
manufacturing not just as a proxy for growth and china but as a proxy for global growth, the privately compiled data out of china for manufacturing is indicatore a leading and a better proxy of chinese growth than gdp. i know you had folks talking gdp numbers. those numbers are often a bit , this manufacturing pmi
which is a break even of 50, 18 of 19 months below that level. 18 of 19 months in a manufacturing session between december of 2014 and june of 2016. that is part of the reason why you have seen industrial metals like aluminum or copper, and why you have seen oil prices to a certain degree and why you see things like rubber prices catapult up great i think you will see these continue to trend higher. we are not going to get it necessarily as big as we have seen the jump since the end of a chinese manufacturing recession. if that manufacturing pmi falls, that will be something that could be quite bearish for commodities. david: i want to bring up my
chart right here. you are there for the world rubber summit. we've seen quite a pullback in prices of rubber. you see we are about 191 per kilo here. is there a target for this? we could talk about how car sales might retire. we just got news a few minutes ago that china will be used car sales. wondering how that bakes into your forecast. >> there are two things here. this is a great commodity to look at. if you look at where the price of rubber was, in the last month of the chinese manufacturing look at whereyou it was in june of 2016 and where it was in february just last month, there was over 70% price increase as you saw escape velocity rise for this commodity. it's really a great example of how you have seen that improvement in growth play out.
a big source of natural rubber demand are tires. vehicles,tinue to use you're going to get tire sales with new vehicles, but with used ones, you've got to replace your tires. dampenesn't necessarily tire demand all that much. as long as you are seeing oil prices that are relatively low compared to highs we've seen in the last decade, these prices are quite modest. you will see -- driven up, and you will see tire demand and use continue to rise. david: i want to play devil's advocate here. i'm just wondering how much of this manufacturing story, which has been around for a few months, has been fully priced in. when did we start talking about the stockpiling, putting pressure in prices? >> think you are right you do see these markets and over. what we're seeing is chopping.
in the past few weeks we have seen rubber prices come in. we have seen some industrial metals be a bit chpopy -- choppy as well. as this data remains positive, you will find it they come back into these markets and you will see a much more gradual trend higher in prices. we expect rubber prices, aluminum prices, scrap prices, oil prices to be higher this year than last year and be higher next year than this year. david: stick around. up where youcking mentioned there. the dollar is in the mix and that will determine where a lot of these contracts go. stick around more with our guests after this break. ♪ up where you mentioned there. the dollar is in the
oil. you look at the short-term fluctuations. there is obviously this push and pull between what opec says and rising inventories in the u.s. determine where the price goes? what we have seen is every time the price is the peekabo, we get these rising inventories. i think there is a few things going on here. you got the demand situation, supply situation going on in the background. ago we hadple weeks seen, they were heavily long, they have now had one of the biggest drops in history for pulling out of that position. usc big changes on that speculum side, and that is something adding noise very the most important thing from a data point and a signal standpoint, if we think about what's going on in the markets, is the fact
summer driving season is the biggest source of demand. while oil inventories have been rising, gasoline inventories and inventories which include diesel and the u.s., those have been falling. for gasoline they have fallen for five consecutive weeks. six consecutive weeks. before the u.s. summer driving season, the biggest source of seasonal , isal demand out there leaving the price bullish because than product prices could rise. and then there's an increase in oil prices. let's talk about oil in the context of this whole reflation trade, which has had quite a substantial hurdle this week. the working assumption right now as far as the federal reserve is concerned at how they react to all of these things we are seeing in congress, if they are going to move in june. you don't expect them to move before september. why?
a couple things. the first and most important thing is that you have had a strong dollar, although it has weakened over the past week. q1 gdp growth,n and that could give the fed puase. -- pause. the second thing that is really important is that business investment, one of the 4 main categories of contributions to gdp, consumpton, investment, net exports and government expenditures, in recession for part of last year, and there's a lot of optimism among corporate set fiscal policy in the u.s. is going to include tax cuts and additional spending. ifthose tax cuts don't come, the budget debates in the u.s. seem choppy and staccato, as they usually do, most budget debates are very staccato, there is push and pull. if that happens and you see corporate begin to get nervous,
investment could pull back and that could dampen growth a bit, really allowing the fed to wait for their next rate hike. possibility -- a not a lot of people talk about this -- we are going to get a lot of details on these tax cuts. distinctivehere's a possibility that that doesn't happen this year. that's a really big challenge. our corporate client base, in the first two weeks of october 89% of our corporate clients expected a recession to start by the end of 2017. in the first two weeks of january, that had fallen to 21%. 21%, that's a huge about-face. if the corporate tax cuts don't
>> i'm rosalind chin with the latest. has toldremier australian lawmakers his country wants peace and stability in the asia-pacific region. he says peace is china's tradition and it does not seek to dominate. he also told a state luncheon that both countries should stand together against protectionism. >> we believe that to resolve trade imbalance, we need to continue to expand trade. that is the solution. we cannot close our doors. that is not the solution. discuss how we
can build further consensus, in particular, investment and trade and services. -- in rade and services. we will continue to import more from australia. >> the second hearing at the trial of the de facto samsung boss has ended in seoul. he will face a third hearing on march 31. the case is linked to korea's undue influence scandal. li is accused of conspiracy to secure control of samsung. the scam is also brought down president park. airbag maker takata could receive $2 billion from a leading rival. theproposal would see chinese owned sick a system join a bailout.
leaving the existing entity liable for all costs and facing liquidation. investment bank you to hold its annual meeting june in southern korea. japan and the u.s. are the only g7 countryside involved. the banks as they are welcome to join. president li says he is proud to have members on almost every continent. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you. hong kong's richest man says he can't see property prices falling. he is less optimistic when you look at the wider economy.
what are the key takeaways from this? have delivered an alert set to resolve. and paid high dividends investor reacted very positively. shares of both companies trading up this morning. one of the key takeaways is the property market like in the said next 1 or 2 years he didn't see any signs of falling. thatated his earlier views there is a risk to the markets. >> absolutely. when you broaden out to these elections we have coming up in verykong, he will be a contentious issue, housing prices in hong kong for the next chief executive. city chime in on the elections? >> -- did he chime in on the
elections? >> of course. everyone once to know who he's going to vote for. reporters tried giving a way to get names from him and he didn't give away. he -- one key criteria is have a good relationship with beijing. david: we kind of know his tilt. europe saw he is the biggest market for his conglomerate. how does that part of the business do? >> europe is definitely the focus because of the weaker currencies in the region. fundamental business is really in good shape. the retail business, in terms of local currency, grows 9%. management has really upset on the business region. david: as you mention, stocks
are reacting quite nicely. on the latest. speaking about the markets, japan just coming back online for the afternoon session. jules? i'm looking at the topics, and it's down by almost 2/10 of 1% after coming back online after the lunch break. we are also seeing the yen retreat against the dollar. this as we see the crude oil price rebound, about $48 a barrel. still a lot of export stocks, consumer discretionary, and banking stocks getting hit today. looking at the broader picture, solid moves coming through in china, rebounding after that 1/2 of 1% drop. the hong kong index also looking
very good. it is up by about 4/10 of 1%. coming through on the hong kong dollar there today. you have seen a rebound in most of the commodity prices that is helping the asx up by 1/3 of 1%. the japanese yen is tracking weaker, down by 2/10 of 1%. let's have a look at some of the stocks we have been watching. david mentioned 10 sent earlier. we had tencent coming through. the e-book business boosting spending on payments straight analysts a little worried about the fact that it's cost blowouts were so high. still no sale recommendations on the anr function on the bloomberg. it paid some of its earlier losses, now down 1%. numbers looks quite good, a little bit above estimates. bhp shows you that picture we are seeing across the commodities space, as you start
to see some of these base metals rebound so that is helping out the mining stocks. 1% after by 6/10 of quite a few sessions. we will be watching the contract quite closely in china. it's had quite a couple of sessions, heavy losses. generally across-the-board you are seeing apart from weakness in japan, things looking better today. daivd? -- david? david: never a dell moment across commodity markets. jules, thank you. b rbnz, they decided this at this point let me bring in kathleen. before we talk about anything else, the next -- what time is it now? the next4 1/2 hours we get the philippines due out with their rate decision. a lot of expectations that they might hike. >> they might at least be
considering it, and that makes them pretty unique as you know, david, among central banks in asia. even though there are various pressures when it comes to currencies and rates of inflation, no one is expected to move except the philippines which has the tiniest possibility. rbnz did decide to hold their rate at 1.75%. said he of the rbnz would like to see a weaker currency but he's not going to do anything to make that happen. but the philippines, it's a different story. out of a survey of 21 economists, 2 are predicting that they will, the bnp will raise that key rate today. it's the first time it has been not unanimous that they are going to hold the rate since 2014. it is significant. it's not because the fed raised
rates last week. it's because of inflation. let's look at a bloomberg chart, 7034. what you are seeing now is the white line that is the key rate. the blue line, that pretty turquoise, inflation is down to 3.3%. that means it is above the key rate. we have a negative real rate at the short end. that is something people are pointing to as a suggestion, combined with that yellow line, that is the gdp rate growing pretty quick. in 2016, 6.8% in the philippines. that is among the best going economies in the world. at any rate, people say maybe they are starting to fall behind the curve. economists said exactly that in a note, david. that is why there is at least the possibility that they might. they are in the same camp with r bnz. they are not going to do anything.
now, we have the talk about janet yellen. she will speak later in washington. could affect markets, depending on what she says. >> we love it when the markets get excited. it gives you a lot to do every day. week, janety last yellen was very steady and measured and she's on board with rate hikes. that is the consensus. rob kaplan, president dallas said earlier in the u.s., and he said, reasonable. looks good to me. fed vice chair, alan blinders spoke earlier on bloomberg television, and he said he thinks there could be four a hikes. this is what he had to say. >> it's very much a possibility. it is still my best guess. vice chair, alan blinders spoke earlier on bloomberg television, and he said helots of things could detm aom before, including somewhat weaker economy as we go
into the second half of the year and we anticipate now. that.'s jump right into go, far left on your bloomberg you see a long line in the middle of that sort of spaceship shaped thing. nine fed officials at the meeting last week, saying three rate hikes is what we can expect. four dots above that, actually five that could see more. 2017ore hike would be 4 in and the other looks like -- you must be somewhere a lot higher by the end of the year. one thing that will be interesting to hear from janet yellen as she speaks at the development conference is what else she might say about fiscal policy. there is this major battle, it has been brewing for a while over repealing obamacare, and the president's sort of stuck in this policy of wanting to get that done before he moves on to other things. tax cuts, more infrastructure spending. fed chiar yellen, other fed
officials have made it clear they are not basing their idea this point onat anything that might happen in washington when it comes to fiscal stimulus. earlier it seems they were factor in maybe just a little maybe factoring in just a little bit. as you know, the markets are very focused on this battle and very keen on finding out what it means for policy here, and for investors, for their inflation traits it looks a bit more doubtful now. david: absolutely. kathleen hays. thank you for joining us out of new york. there's plenty more ahead in the program. we have been live in china's version of a tropical paradise. what's more coming up on the program. this is bloomberg. ♪
david: welcome back. this is "bloomberg markets asia." start things off with twitter. says more than half of all content removal requests came from turkey last year. turkish courts believe government agencies made for 3000 requests in the second quarter. turkey said it withheld some content. now, at&t and verizon have halted their advertising spending, with google joining a growing list of companies concerned about offensive ads. a spokesperson for agency said the company is deeply concerned ads may have appeared
alongside content that promotes quote, terrorism and hate. look at sony mobile here. it has lost a patent infringement case in china. the beijing intellectual property court ruled in favor of independent companies. orderedt says -- also -- 35 models are affected. leaders ining world finance. of the key themes will really be how to mitigate the impact of the china slowdown. >> it opens the system of two contagion, because if there is a small security firm that runs feedsrouble and then it into a local bank and that feeds into another bank, that is the problem that china potentially faces and that becomes difficult
for pboc which would provide liquidity to get there fast enough to identify the parties involved, not knowing who the parties are is part of the problem at the outset, the getting liquidity to where it is needed is challenging. david: nicholas is a senior fellow at the peterson institute. he sees the problem in china in terms of the debt issue. >> it is a substantial challenge. on the other hand, it's easy to overstate a large part of the growth in the debt over the last 2 years, particularly last year, very large borrowing by the household sector. when the household sector is not very leveraged relative to disposable income, then many very large borrowing byeconomit borrowing is for mortgages. is thel problem so-called zombie companies are
turning enough money to pay off their loans or pay the interest rate they keep borrowing and rolling over. that is where the serious problem is. it's a the so-called zombie companies are turning enough money component p in debt that they really have to focus on. david: when we talk about finance, deleveraging the economy, pulling the dependents away in terms of credit. it has been a theme, lot of the pboc watchers have been watching. lenders, if you see what happened a few days ago. we spoke with the chairman of china's biggest peer to peer and he says he has seen the sector having an extensive period of consolidation. >> the number of players in the industry, we used to talk about 2000 to 3000. right now we are talking about 1000. out of that 1000, the top 20 have 50% of the market. we have seen in our case, our market share double roughly over the last year. that was a word from the
forum. let's turn our attention to canada. hitting the brakes on new spending and avoiding major tax changes. i guess to a lesser extent showing signs of recovery, after revealing his second budget, the finance minister told bloomberg he wants to show the world that canada has the best balance sheet across the g7. >> of course we are deeply engaged with our neighbors to the south. we want to make sure our trading .elationship stay strong our budget -- about what we can do in canada to make sure our country remains strong, to make sure our economy creates jobs the canadians want. that is what we are doing. today was a day as part of a long-term plan, a plan that started a year and a half ago, dealing with middle-class anxiety, helping canadians feel better about the opportunities for themselves and their children. today is about the long-term. the long-term is for us. we are the sectors that canada
can be successful in the world, focus on those sectors. one of the things we need to do to help canadians get the skills to be successful in those places, that is a very canadian challenge. it is one we are consumed with, and i think we are making a real impact. we're talking potential border tax. is that encapsulated in your risk adjustment? how is canada hedging for any negative impact to its economy? >> the most important thing we can do is continue on our path to create jobs for canadians, which will help our economy to grow. a resilient economy is critically important for dealing with any challenge. none of us can know what is around the corner and that's what we need to do to make sure we are successful. the good news is what we have started on doing is having an impact. we have reduced unemployment from 7.1% to six by 6% since we have been in office. the last seven months have seen
250,000 new jobs in this country. that's the best in a decade. the majority were full-time jobs. the measures we are taking are having an impact. they are what will allow us to have that long-term vision for success. toy are what will allow us be resilient in the face of whatever challenges we might face. [inaudible] you, it's nottell in our budget. we did look at measures that we could take in order to ensure our system was efficient, measures we could take to ensure it was fair. you have seen a few efficiency measures. we will continue on that focus. the thing that really jumped out at us, we saw there were some individuals who are using private corporations to lower their effective tax rate. we wanted to make sure that we deal with that. we will be putting out a consultation paper to make sure we get it right. we will have a situation where we want to be sure that 2 people
living side-by-side, same income, have the same tax rate. that is critical for us straight to the extent that some people are using coaches to change their tax rate, we will deal with that. david: that was the canadian finance minister, bill morneau. coming up, we will talk about vietnam. it's one of the smaller economies in asia, but it is jostling when it comes to this we will infrastructure look at the ambitious plan in the country. that is next. ♪
maximum amount of inflows coming in through that market. when compared across asian peers, over 3 billion net inflows. strong's level since october. , the samein hong kong can't be said. the markets are doing fairly well. 25,000 seems further than it was a week ago, 1/4 of 1%. the hong kong dollar is expected not doing anything positive. over to tokyo, what are we doing? 24 minutes into the afternoon session, lat, which could be worse when you look at where dollar-yen has been trading. level push to lower that during the new york session. dollar-yen up 1/5 of 1%. have a look at how markets are across southeast asia. -- end and asian stocks
indonesian stocks hitting a fresh high. look at that. .hat is a good day 17 year chart, 5558 now on the jci index. let's have a look at gmm. top of the list is vietnam stock market, 8/10. 17 year chart, 5558 now on the of 1%. start of the year we had a lot of forecasts coming up. we are getting very close to that level at the moment. a lot of the people we talked to who are at a lot of the smaller markets in the region most bullish when it comes to vietnam. sticking in theme, the country of vietnam may be one of the smallest economies in asia, but it's among those leading the full infrastructure rates and boosting spending on highways. we are talking power plants. more foreign investors into the country. our correspondent is tracking
the story for us in singapore and has vietnam really ramping up the efforts here. >> it's wrapping it up, it's pumping billions of dollars straight it is spending more on infrastructure than any other country in southeast asia. you can see why. for vietnam to track forward money, it has to do more than have cheap labor. he needs good infrastructure, airports, roads, sanitation facilities across the country. then only will foreign company set up factories. vietnam spends i .7% of gdp on torastructure, second only china, which spends 6.8% on gdp. in comparison, indonesia, the philippines, malaysia, thailand, they spend less on 3%, trailing behind even though they are trying to play catch-up. the assets so far paying off in vietnam.
a record loss here, almost $16 billion flowed into the country. growth expected to average 6% until 2019. vietnam among the top performers this year's spirit of i spoke to the prime minister earlier this year and he is more than keen preferring investors by a even banks in the country. >> the will is there. so is the commitment. i guess money is another thing altogether. >> you are right. finding an issue. infrastructure needs are enormous, even with the current rates of spending, he needs an --for things like a dozen power plants. given the government can only --t 1/3 of the french financial requirements, the private sector will have to play a much bigger role. this is where vietnam falls short. the calls for less than 10%. that is according to some investments.