tv Bloomberg Daybreak Asia Bloomberg August 6, 2019 7:00pm-9:00pm EDT
paul: good morning. allen in sydney. we are under one hour away from the australian market open. shery: i'm shery ahn. sophie: i am sophie kamaruddin and hong kong. welcome to "daybreak asia." paul: our top stories this wednesday, presidential keeps up the pressure on china with a new set of terrorists. the final list of duties may be published in days. china stabilize the yuan, .rompting speculation
oil slides into a bear market as trade tensions add to slowing demand. brenda cost 20% since its april high. cost 20% since its april high. shery: stocks rebounding. treasuries paring back some of the earlier sturges we saw this week not to mention the dollar -- surges we saw this week, not to mention the dollar. we had brent falling more than 20% since its april the and sliding into a bear market. this despite the fact that we are seeing eight consecutive weeks of your talk piles declining -- u.s. stockpiles declining. 1.4%.sdaq gained let's futures at the moment under a little bit of pressure, down .1%. let's see how things are shaping up in the asian markets as we have a few central-bank decisions. sophie: it could be a mixed
start for the asian stocks after a five-day loss with several major market threatening to join the kospi, writing our year-to-date gains. wiping out- year-to-date gains. check out tv stocks, jumping 1% one hour into cash trade. 10-year gilts hovering around 10%. the aussie dollar study along with the qb which is trading at 65.28 ahead of the rbnz's policy decision. andy a at along with while thailand is seen holding steady. the offshore yuan in focus, sticking above the seven handle. the pboc moved to stabilize the currency. paul. paul: thanks. let's get a check of the first word news with that of the dead. -- ritika gupta. ritika: the japanese economy has
fallen to a level not seen since the wake of the -- the meeting index dropped to june, the lowest since february, 2010. it is one of the broadest indicators of activity, drawing on nine measures. regulators in singapore and india have approved a stock trading link, ending a year-long dispute that left investors with no easy way to hedge risk. it is expected to earn official approval and be operational by the end of the year. aftero sides traded barbs singapore announced single stock futures are some of india's top companies. australia issued a warning to travelers to hong kong, recommending they exercise a high degree of caution as unrest in the city escalates.
there were more clashes on tuesday night as police charged protesters who surrounded a police station to demand the release of a student they say has been arrested unfairly. there are more protest events planned later. north korea is being accused of hacking into both traditional and high-tech financial systems to funnel cash into nuclear weapons program. hasgyang has about -- amassed $2 million. kim jong-un has 30 agents working overseas, controlling bank accounts and money transfers. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. shery: thank you. the return to u.s. markets, the halted a six-day losing
streak, rising more than 1% after monday's 3% plunge. it was a tentative recovery at best. su keenan joins us with more. given the fact that there has been no progress when it comes to those trade tensions -- su: the s&p did not get back 885, and that means there is more lingering concerns underneath. he did not have to panic saw in may and december and we did not have the capitulation. we have the tech index on fire. biggest drop in two months, a bounceback advanced micro. they are benefiting from positive earnings. beyond meet getting a hit -- meat getting a hit because of the offering.
it frames the question well. what was it that we saw? the all country index had its biggest hit on monday, down 2.5%. it came back .5%. some say the rebound is less than satisfying. we have some concerns, one of which is profit for corporations, especially with the lingering trade war. citigroup cutting its estimate on corporate profits for that reason. shery: no wonder we are seeing some negativity continue to linger when it comes to oil. su: let's go to the five-day chart. we are ahead of what could be a bullish supply data released later wednesday. it is unusual to see oil remain down. some are viewing oil tariffs as inevitable. take a look at the big picture chart.
they are markets, oil down significantly. was supplanting -- woes supplanting any concerns about the mideast conflict. r a bit of a bumpy as the pbocide -- we did get a bit of a bumpy ride. bitcoin had a shot in the arm from all of this. .aul: after-hours trade particularly disney missing its lowest estimate due to a profit shortfall. the announcement after the bell. partlyrs theme park ride to blame. i thought that was very popular, wasn't it? su: investors thought that would be a big win. not so. the forcears ride, was not with it. it was one of the reasons u.s.
attendance was down. perhaps not coming back. that's going to the disney big picture story. the money they are spending too compete with netflix. that was a big win for weight watchers. if we going to some of the big themes on the conference call in addition to the disappointing attendance at u.s. parks, the resorts profit fell. might help theed company shouldering the burden netflixh to beef up its like streaming video. they are not there yet. investors really hitting after-hours. paul: su keenan, thanks.
says trade talks in washington next month are still on despite the latest tit-for-tat trade. >> we are planning for the chinese to come here next month and if there is a good deal or progress, we may reconsider some things, but similarly, he also said there is no good deal, no progress, he may reconsider some things on the other side. tensions remain high despite china's stronger-than-expected yuan fixing yesterday. let's cross to sarah mcgregor in l.a. what is the latest word from the white house? quite it does seem optimistic to hear that the u.s. is interested in negotiating a deal and it is looking forward to these talks. it will take both sides to agree to keep talks going and we really have not heard from china yet either way on whether it still plans to come.
the u.s. since the last round has really escalated things by saying they will impose 10% tariffs. of course, labeling the country a currency manipulator yesterday, which was quite inflammatory to do, it might have huge repercussions for china in and of itself. but definitely, you know, a slap in the face for them, so i think it is surprising to hear that the trump administration still expects talks to continue. we don't know if china indicated that in the past hours or days so it will be interesting to hear from beijing about what their plan is. we have seen that they repercussions for american farmers as the chinese are not purchasing as much as president trump would want. are we hearing anything else about how the administration plans to support these farmers? john said today that more farm aid is definitely an option.
i can farmers are becoming increasingly vocal. trade, not aid. that is one of the lobbying message is going on around washington. the trump administration has given them $28 billion. some figures show the revenue that has been collected from these extra tariffs is $20 billion, so the impact on the farmers and the eighth they are aid they are getting is on them. that maythink that aid or may not, that might not actually commented income for farmers is going to be a big solace for them. that will be interesting, how trump response to them. paul: yes, sarah, it has been quite the game of brinksmanship. fromve seen bold moves both leaders. is there a risk these could backfire? sarah: absolutely.
we heard trump saying his personal rapport with president xi jinping was holding what relationship together through good times and bad in the negotiations. the two like since leaders met, things have deteriorated. put their best team forward, but it does not seem to be moving ahead. there is no reason to believe they are going to meet to try and get past this impasse as well. it really may be is just a game of brinksmanship at this point. paul: sarah mcgregor, thanks very much for joining us. still to come, we will preview the central bank decisions that are due in asia as pressure to ease continues. shery: james bullard pushes back at suggestions the fed will cut rates due to the fallout from rising trade turmoil. this is bloomberg. ♪
trade war is that there's threats and cap threats occurring all the time. some of these might be implemented. some of these might not actually get implemented. the nature of the war is you have tit-for-tat going on all the time. it is not reasonable for monetary policy to respond to all these threats and counter threats. shery: that was james pollard speaking at the nest -- james bullard speaking at the national conference in washington. great to have you with us, john. surprising as it backed bullard -- is it that bullard, who we see as one of the most dovish out of there, is turning a little bit hawkish? have the markets than relying too much on the said here? -- on the fed here? >> this time, he was on the hawkish side. it is not just threats that are out there. it is actually implementation of
a lot of these tariffs and we got a lot more information recently about how serious it is going to get. we have the fed cutting twice more, 25 basis points in september and december, and it could happen in a more accelerated fashion, because the trade war has gotten so much more serious, and financial conditions have tightened. that help much will financial markets given we have seen this massive selloff the last couple of days? we are seeing global stocks at the most oversold in months. john: certainly, the fed action in terms of rhetoric coming out of the media, speeches, out of jackson hole, might help the market quite a bit. it is not going to solve everything. there has to be some progress on the u.s. and china agreement to get the markets really excited again. in terms of where you put your money in this kind of environment, you like japanese
equities. does the strengthening yen not put you off a little? john: we have been pretty moderately negative on equity since late june, which is extremely rare for us. it only happened once or twice in the gsc, and japan was one of our two favorite markets, the u.s. and japan. we do not see a recession there or anywhere. certainly, the yen is getting a bit strong. it is hitting our year-end target. a major problem at this point, but if it gets a lot stronger, it will impact the japanese stock market. investor, you.s. will have a currency appreciation that will offset the loss that you get in equities. paul: jerry mentioned before
that -- sheri mentioned -- shery mentioned they are oversold. selloff -- with that big selloff, can you see any buying opportunities? john: there are not any major markets we are jumping at right now in terms of equities. investors,ong-term we look at equities as a long-term investor. -- investment. they will selloff if you are a brave person. sure. equities are probably a very good investment. u.s. equities are the top of our list. shery: do you touch equities?arket we are hearing from the south korean finance minister saying they will try to strengthen their stock. they are taking such a big hit at the moment. the indicesof
are heavily into timeline and korea. you have to believe in the tech cycle. they are some tech oriented. there are signs that the tech cycle will start to move up. dram prices are moving up. a lot of demand for other types of technologies should improve in the second half. those two stock markets. korea has a problem with japan. that needs to be sorted out before anybody gets optimistic about the korean market. shery: how closely are you watching the chinese yuan? i am watching very carefully. that is one of the most important things to watch. i do not think they will let it fall out of bed. you have a lot of reasons why not to. they are going to weaponize the yuan, but they let it weaken. shery: didn't they already weaponize it by letting it weaken past seven? john: made it.
unfortunately for them, trump responded and the u.s. responded with a pretty aggressive move that should scare them. it might have scared them away from doing anything too radical. paul: whole currency manipulation thing i do find rather perplexing. i would like your take on it as well. when china stopped popping up the yuan, the market began to do its work. -- it was kind of when china stopped propping up the yuan that the market began to do its work. john: only god knows how much money would be going out of that country if it had free access. i do not have a good number as to what the natural rate of the yuan should we. -- should be. it seems priced at a level that is not unreasonable, although it so has a very large trade surplus.
the current account surplus is low due to a lot of questionable methods of calculation, but the account is still quite in surplus, so using sort of an old-fashion rule of thumb, and you would say the currencies still could appreciate further in order to make the trade account balance. i know you are caught in the scent of geopolitical risks right now. with that in mind, what is your gold exposure like? john: we do not have that as an class. we do predict the price and have it going up by the end of the year to the mid-1400s. and then even higher next year. so many geopolitical risk south fair and all of them are actually getting crystallized in many ways. the chinese-u.s. trade war, the japan-korea trade spat.
you have brexit, iran. north korea is not acting very well either. that is one of the main reasons why we did turned negative on global equities back in late june was because of geopolitical tangibleting much more and recognizable by the market. shery: thank you so much for joining us. he is the chief global strategist. we want to take you live now to coverage of the launch that spacex falcon nine rocket from cape canaveral in florida. we are talking about the satellite for space come. we know it has been flown twice. back in july and november of 2018. a rare, expendable omission. we're talking about the rocket not returning to landing after takeoff and will in fact fall
hsbc came under investigation after a former tech worker gave details to prosecutors. hsbc settled a similar fine in france. shery: disney hit by falling theme park attendance and the costly flop of a marvel movie. third-quarter profit fell to one dollar.35 -- $1.35 a share. disney saying lower attendance led to reduced profits at domestic theme parks. paul: occidental is selling $13 billion debt to pay for it. occidental received orders that peaked at more than $75 billion, the biggest demand for a debt sale since saudi aramco received more in april. investors are willing to take a
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ritika: this is "daybreak asia." i am ready corrupt or what the first word headlines. james bullard says policymakers have already taken steps to account for trade war uncertainty. he is only expecting one more rate cut this year. he told the national economists club in washington that it is important to watch the data ahead of the fed's next meeting. in june, the forecast 8.5% cut 0.5%e end of the year -- a cut by the end of the year. of these might be implemented. some of these might not get implemented, but the nature of the war is you have tit-for-tat
going on all the time. it is not reasonable for monetary policy to respond to all these threats and counter threats. ritika: london and brussels are trading blame over brexit with less than three months until the latest divorce deadline. the u.k. minister in charge of planning a new deal -- no deal says the e.u. is at fault. brussels says it is open to talks but that the e.u.'s position remains unchanged and the current deal is the only one possible. the trump administration is keeping up the pressure on china, slapping tariffs on more than $4 billion of wooden cabinets imported into the u.s. in thee is a small step trade war that comes as the administration prepares to publish a final list of goods to be had by far greater duties. president trump is imposing tariffs on $300 billion of imports and is threatening to go higher. regulators in singapore and india have approved a stock
trading link, ending a year-long dispute that left investors with no easy way to hedge risk. the proposed connect is expected to earn official approval and be operational by the end of the year. the two sides traded barbs after singapore announced single stock futures on some of india's top companies. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. shery. shery: we are half an hour away from the open in tokyo, sydney, and seoul. let's turn to sophie for what to watch in the markets. samsungwe are watching and its suppliers on speculation that japan may unveil a list of export items affected by the white list removal. simcoe is a supplier to samsung. it could have an indirect impact. simcoe missed estimates -- sumco
missed estimates. switching the board, we are watching korean brokers after finance minister -- said shortselling rules will be strengthened if needed, reinforcing what the securities watchdog has set of late with regard to taking measures to respond to instability, including reduced limits for daily price movements. this will be a test for those brave enough to buy korean to takesurpassing -- the crown for 2019's worst market. some technical indicators may is reaching at turning point. the selling could be overdone. i moved them back to 2000 for the cost be and that could be an order, paul. you so much for that. trade tensions beating down on the price of oil. brent fell into a bear market on tuesday. that is 21% since april.
bloomberg energy reporter james darnell joins us in sydney. why is the market so spooked? james: nothing new in the trade war for markets, but i guess in terms of crude specifically, there is concern that the china -- that china might start recording u.s. crude. it does feed into broader concerns about demand disruption if the trade war continues and the impact that will have on global demand for crude. these tensions escalate. china might end up retaliating by telling some of the giant treasury holdings and that will significant increase in tensions and could potentially have a huge destabilizing effect on global market. there is a lot of tension out there and crude is reacting to that. shery: even geopolitical tensions in the middle east have not been able to push up prices that much.
really -- it has really taken a backseat. there's been major developments. the trump administration has a threat of fresh tariffs coming in and china taking steps to devalue the yuan or at least depreciate it earlier in the week. we need to see how that currency move is going to pan out. will china continue to seek their competitive advantage by driving the value of the yuan down? oft will raise the hackles trump and the white house, and you know, probably going to see a further escalation of tensions. we need to see if the white house follows through on that threat with the extra tariffs in september. this prospect of a meaningful rally in crude -- unless you get a huge flareup in the persian gulf, which is a risk.
it seems to be quieter on that front. it has been at least in recent days. also in the backdrop, you have got to bear in mind we have more data from the u.s. overnight showing that inventories continue to be drawn down, in that is a positive for the market. supply is tightening. that is offering a little bit of support at the margins, but as i said, it is all focused on the trade war. shery: think is a much for that with the latest on the oil markets. central banks in asia are posed to cut interest rates as they bolster the economy's against the wave of global threats. and the current joint -- enda c urran joins us in hong kong. is this a race to the bottom? enda: if you look at the last week alone, we had some significant developments for central banks in asia. we have a trade war which has come back with a bang. china respond with -- by allowing the want to weaken.
we had renewed volatility across global markets. we had three meetings in new zealand and india and thailand and all of them shared a commonality that they are on the at pressure currencies and upward pressure in some cases given the fed is putting interest rates -- that has taken pressure off the dollar. the backdrop has got to be a deteriorating global picture. they: let us start with rbnz. what are we expecting on that front? enda: they were one of the first to cut rates in this easing cycle or the first develop central-bank anyway. all the indications are that there is still pressure on them to lower again. they could by 25 basis points in may. they are keeping an eye on their currency and watching the labor market. in their last statement, they
gave a nod to concerns over the global story. there is a small, open economy. some of the developments do not offer much comfort, so they will be keeping an eye on the trade war on china's own economy and what the one means. at the very least, -- the yuan means. at the very least, that would put a dovish tinge to their outlook. paul: the bank of australia did not move. it stayed on hold on tuesday and that is pretty much straight out of the rba playbook. wait andts and then see. it appears to be a matter of time before we see more easing in australia, doesn't it? enda: it most certainly does. it is trickling through to getting spending going on the ground. everyone will be watching the labor market to see how that develops. if they had to -- have to cut interest rates further, you will
start to see a debate around what more the central bank can do if they can do anything. it goes to this whole debate about the race to the bottom, about potency of central banks, and whether or not fiscal authorities, governments, and other agents should be doing more to get growth around the world. the story reflects a lot of pressures that banks everywhere are feeling. in hong kong.ran still to come, hong kong's escalating street protests could put property prices under threat. potential long-term impact on housing. this is bloomberg. ♪ this is bloomberg. ♪
osaka and are currently higher by a shade over .5%. this is "daybreak asia." i am paul allen in sydney. shery: i am shery ahn in new york. there is a trade war and unrest in hong kong. keith barr spoke to bloomberg about the impact of the ongoing protests in the city. keith: as the demonstrations began, we did not see any material impact in hong kong. we did see a bit of a slowdown overall in some of the meetings and events and business in hong kong. that disruption and uncertainty will have an impact going forward, but overall, it is a small portion of our business. the biggest, one of uncertainties is the escalation in the u.s.-china trade work areas manus and i outlined the latest moves in terms of the u.s. naming china an fx manipulator. the yuan is through seven.
you say that you are outperforming in your chinese brand, but are you concerned about any impact on the chinese consumer and therefore on your brand if we do see a continuing weakness in the yuan? global chiefk any executives that sense they are not concerned about a trade were between china and the u.s. is not being honest with you. the great thing about our business is they are principally domestic businesses now. me celebrated seeing their 30 48 years -- 35 years. hotels in0 plus development. principally a chinese domestic consumer so we are not dependent upon international travel. as long as we are seeing rising wealth in china which we know will happen for the long-term, it is a great market for the long term, performing quite well in the short-term. we want to make sure investor confidence in china does not wane and consumer confidence does not wane. paul: that was intercontinental
hotels group ceo keith barr. at theake a closer look long-running street protests in hong kong and assess the potential implications for the commercial property sector. joining us from the city is the head of a pack research and -- aipac research and investment strategy. thank you for joining us. you heard from the intercontinental chief talking about some of the challenges that he faces. how long can this disruption in hong kong go on before dark to have some more severe implications for the commercial property market? we do not intend to be able to predict geopolitical events, but the impact on commercial real estate will vary depending on how long this protest will last and how disruptive it will be. in the hotel sector, as we know,
there are essentially daily releases, so that will be impacted as long as this protest blasts. -- lasts. the leases are three years to five years. landowners are locked into leases and they will not impacted unless some of these leases are up to the renewal. in terms of property prices, historically, political events will only impact commercial prices when it is accompanied financial events. for example, the 1997 handovers together with the asian financial crisis. those two things together does have an impact on commercial real estate prices in hong kong. it is too early to tell. we started to see global capital market volatilities or liquidities starting to impact hong kong markets.
those two things together could potentially have a much stronger impact on property prices. paul: are there any particular sectors that may be more vulnerable than others? particularly retail. australia wanted citizens to exercise caution when traveling to hong kong. that cannot be terribly good for the retail sector, can it? elysia: hotel and retail sectors will be more directly and more impacted in the near term. offers or warehouse logistics sectors, there will be less impact. indirectly impacted in the long-term is protests continue to last. shery: this is coming at a time when we continue to see hardinge trade tensions between the u.s. and china. what sectors and regions are being affected by this? elysia: absolutely. when the two largest economies -- it world in trade war
is not good news for all sectors including the property sector, and obviously, there are stronger markets and markets that have more resiliency, and obviously, there will be market that are more impacted. for example, the tokyo office, which is essentially a below 1% vacancy rate, fully occupied, in the waek growth environment -- weak growth environment, the use markets will be more resilient coming through an economic slowdown. other areas that we think, for example, there will be more stronger growth, stronger growth than the broader economic outlook. for example, those districts sector, where it capitalize on the broader domestic consumption's and e-commerce growth. it is more resilient and china logistics. and the broader asia-pacific
sectors. shery: if you are looking for higher returns in this environment of low yield slow growth, low inflation, what should investors looking at in the real estate settlement? elysia: absolutely. in the low yield, low interest rate environment, real yields are very -- real estate yields are very attractive. prime office yields across the 200-pacific region, about to 400 basis points higher than the 10 year government bond. to some extent, they are investors.to for the logistics sector, you can add on another 100 to 200 basis points on top of that. which will be very attractive in that environment where over a quarter of the global corporate and government bonds are under 0%.
new report, you say that asia tourist demands is one of the strengths in the market at the moment. estatenclad rule of real applies to location, location, location. what location is critical? elysia: obviously, locations are very critical, as you mentioned. we favor markets where we see strong middle-class asian travelers. for example, tokyo, for example. , and, parts of australia also, it is not only just the locations, but the type of hotels is also very important. we are looking for mismatch of supply and demand. for example, in tokyo, there is rooms,age of smaller where it is affordable and can offer multiple occupancies for family or multiple travelers.
mismatchhere we see a of demand and we tend to favor those locations. shery: when it comes to china, given the slowing economy and the ongoing tensions with the u.s., is it feasible to expect that beijing will not tighten its grip, that it will not try to reign in property prices as it has done in the past? presume you are referring to the residential prices? they are relatively controlled by the government. we spend most of our time in the ormercial real estate logistics sector. it is capitalized on the market supply and demand dynamic. less so on the government control and policies. shery: thank you so much for that. elysia tse. if you missed any part of that interview, tv is your function.
paul: this is "daybreak asia." i am paul allen in sydney. shery: i am shery ahn in new york. singapore is tightening regulations on right-handers ers. as grab -- ridehail the new rules come six years after ride-hailing apps hit the streets in singapore. before that, there were 28,000 taxis. today, there are only 20,000. 45,000 is higher. they provide 6% of all journeys in singapore. paul: -- is in talks to sell a
10% stake to tencent. shares soared on a plan that would value the top music is this at $43 billion. efforts to sell the state have stumbled. he says it is discussing cooperation with tencent and wants the chinese company to promote universal artists. paul: it is keeping a close i on google, tweeting more accusations that the search is working against him in the run-up to the election. president trump says despite the meeting with the ceo, he was assured google had no plans to influence the results. google has repeatedly denied the president's claims and dismisses all suggestions of political bias. paul: if you're looking for advice on investing in simtech, it seems you could do worse than us snoop dogg -- ask snoop dogg. payments and banking firm --
payments and a banking firm reached $5.5 billion after a fresh round of funding. some big man to have followed his lead. shery: disney fell in late trade. hit by falling themepark attendance, spending on used streaming services, and the costly flop of a marvel movie in the acquisition of assets. third-quarter profit fell to $. 1.35 a share. revenue missed by more than $1 disney saying lower attendance led to reduced profit at domestic theme parks. in tokyo, sydney, and seoul at the top of the hour. what are you watching? sophie: futures are pointing to a mixed start. watching to see if the costly may have technical hits at -- hints at a turning point. samsung denies a report that it seeks to reap is on japanese
materials and chemical products used in it chip manufacturing. checking in on current the markets, the yen is edging higher after capping its biggest drop in the month on tuesday against the dollar amid heightened volatility on trade. the kiwi dollar nudging higher by .1% after a nine-day decline ahead of the rbnz's decision this wednesday. a rate cut is expected to support the labor market and ease up pressure on the kiwi dollar. the offshore yuan holding steady as the pboc signals ability and reassured foreign companies that the currency will not continue to weaken significantly after falling below seven. the hong kong dollar hovering below the 7.84 level as the weekend of its trading is in full -- weak end of its trading focus.ull softbank and toshiba are due to report results. backnounced plans to buy
as much as $2.8 billion worth of shares to boost returns after first quarter profit missed this mix. we are watching cosmetics maker -- agreed to buy a 30% stake for $1.2 billion as the brewer pushes into health and well-being products. shery. shery: thank you so much for that. we do have the summary of opinions coming from the bank of japan right now. this is from their last meeting on july 30, and they are saying the boj needs to carefully examine is more easing is needed. the boj must respond quickly if global slowdown hits prices. one member saying it is vital to act productively. momentum ising lost. one boj member saying the sales tax market changes warned vigilance. this of course coming at a time as the u.s.-china trade war escalates and we continue to see a strengthening yen. pop. -- paul. paul: thanks very much.
paul: good morning, i'm all allen in sydney. asian markets are about to open for trade. shery: and i am shery ahn from bloomberg's headquarters in new york. sophie: and i am sophie kamaruddin in hong kong. welcome to "daybreak: asia." ♪ paul: our top stories this wednesday, president trump keeps pressure on china with news of final list of duties, may be published within days. oil slides into a bear market due to slowing global demand.
brent down 20% since its april high. shery: investors await more central bank policy decisions. st. louis fed president steve bullard says trade uncertainties account for more. let's get to the market action. investors have a lot to tie just. this morning best to digest this morning. sophie, what are you seeing? sophie: we have the nikkei 225 under pressure. exile for three days. the yen nudging higher after its against drop in a month. coming up, we will also check in on the mood in seoul burma. the cost beginning ground this morning after a five-day decline . samsung electronics after about .5% after the company denied reports it is looking to replace all japanese materials and chemical products used in its chips. the asx 200,, marginally higher after falling the most since october on
tuesday when it lost 2.4%. the quantitative easing benchmark rate trading below 1.2% ahead of the rbis decision today where rate cuts are expected from new zealand. the r.b.i. is also expected to cut rates. but thailand is seen holding. paul: thank you, sophie. let's check in on the first word news now. australia has issued a warning for travelers to hong kong, recommending they exercise a high degree of caution, is unrest in the city escalates. there were more clashes tuesday night, as police charged at protesters who surrounded the police station to demand the release of students they say were arrested unfairly. more protests is planned on wednesday. >> i want to warn all those criminals, don't miss judge of
the situation or take restraint as a sign of weakness. don't underestimate hong kong society's are full force for justice and protection of the rule of law and security in .rder >> the u.k. minister in charge of planning for in no deal, michael gove, says the e.u. is at fault for failing to engage on negotiations. brussels says it is open to talks about the position remains unchanged, but the current deal is the only one possible. a key measure of the japanese economy has fallen to a level not seen the wake of the financial crisis, adding to concerns about growth. the leading coincident index june, the 93.3 in lowest since february 2010, one of the broadest indicators of industrialrawing on output and shipment of consumer goods. space x has successfully
launched a pivot furniture the company, three years after a rocket exploded. it lifted off from cape canaveral with a satellite for communication. in september 2016, a prelaunch last destroyed another satellite and space is flying this one for free. that explosion had caused russia to scrap plans to purchase a rocket. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: the white house says trade talks in washington are still on. tensions as committed after president trump doubled china a currency manipulator and china acted to limit the yuan's fall. our correspondent selena wong joins us from beijing.
washington seems pretty optimistic that the talks are ago. selina: the problem now is that the political space for a deal is diminishing. neither side seems to be sure the other side is serious. china sees trump as posturing ahead of the 2020 elections, while president xi is seeing trump as drawing it out and not really in a rush. we know that these leaders are. gathering now. we have learned that xi is under pressure from the does to get tougher. huawei is under attack and continue.n hong kong bloomberg spoke with the former economic negotiator on the china side. he said it is unlikely china will buckle under pressure at this point. so they are convinced that dealing with the u.s. will be unproductive. we have also been looking at an editorial in "the china daily" 'sich shows that the u.s.
lives decision to label china as a currency manipulator hasn't gone to well. saying the best washington move is not to whatever possible .eans saying that this is really destabilizing international monetary norms. so the picture is not looking too good as to whether or not china step up to the table to continue discussions in september. paul: in terms of what china does next, we just have a line crossing the trammell now, china planning to revise products in import tariff quota roles. in his suggestion whether that of the revised in favor u.s. or not, but we will wait for more headlines on that, china to revise farm product import quota rules. where does that leave china in terms of where to go next? it seems to make a conciliatory move with the yuan yesterday.
where do we go from here? selina: agricultural purchases are a place where china has a point. industryfrom abd farm group in the u.s. that this was a big body glow that china was decelerating its purchase of u.s. agricultural goods -- a blow.ody the pboc has been reported that it is insuring companies that the currency will not significantly devalue from that 7 level. companies are concerned that it would make their imports more expensive if the currency were to devalue. so china wants to be careful it doesn't get any blowback, or weekend the currency too significantly, it would be destabilizing and they don't want to risk capital flight. we could also see china use non-tariff barriers. they could use the power of the consumer with some very important foreign brands.
china has already levied tariffs on $100 billion worth of imports. after that, they have about $45 billion worth of imports legal tariff. additional they also have this unreliable entity list. we still have not seen with the outcome of that will be at. so there are still a lot of tools in china's toolbox. so we may or may not see talks happening in september. paul: selina wang, our china correspondent in beijing, thank you very much. crude is extending losses for a third day. brent crude has lost almost 5%, and entered a bear market on tuesday. asian energy editor aaron clark joins us from tokyo. the trade war continues to escalate. oil is a pretty major casualty. aaron: yes, the u.s., china
trade war is dominating it improves in the energy markets. west texas intermediate says the u.s. benchmark is down 5% today, down 1.9% yesterday, brent is a global its market has fallen 20% since its april. peak when it moved into bear market yesterday. groups saidustry that an american oil inventory has contracted for an eighth week yesterday, and of course, we have the tensions on the strait of hormuz. iran has arrested several tankers, it has threatened additional action. that is important because the strait, one third of the world crude passes through the strait. the trade war is overshadowing everything. the concern is that. it will dent global economic growth and in turn, fuel demand and oil demand.
so that is overshadowing everything at this point. shery: what actions from beijing could we see that impact when markets are again? aaron: i think the next thing people are looking at, a few as president donald trump implements additional trade tariffs that he threatened that would be scheduled to start on september 1. a lot of analysts have speculated that china would slap tariffs on u.s. crude imports, one commodity that china has not touched may have. looked tariffs on other imports like u.s. soybeans, but they far.not touched oil so if they do that, a lot of u.s. oil will have to find a new home. china will have to reach out to other suppliers to make up for that. you will see as a bit of movement or change in the global energy flows. that is really the next factor people are looking at. it could also have an impact on the u.s. economy.
they may not be in which export as much oil. it could have a larger economic impact. that is what people are looking to next. shery: great to have you with us, our bloomberg asian energy editor. still ahead, we are joined by the ceo of hong kong's largest electricity supplier, richard lancaster. paul: but first, the outlook for central banks in the region ahead of decisions from new zealand, india, and thailand. this is bloomberg. ♪
r.b.i.. our correspondent joins us from singapore. is it still a race to the bottom, michelle? michelle: friendly, there is not factor that they will be deciding. an exciting week for central bankers to communicate their views on what is going on in their own economies. central bank decisions remaining this week should pretty much fall in line with expectations. said thise -- ibm morning that they are likely to cut amid labor market pressures as well as the impact of a trade wars. india is also very like you to cut but for different reasons. interesting,uite not as vulnerable to the trade region,others in the however, a lot going on domestically to call for a cut. they have financial sector troubles and a more dovish composition of the r.b.i., so we
expect some easing. thailand is an outlier in the southeast asian central banks, we see a hold at 1.75 percent. they are also dealing with a stronger by, which will have pressures on the other side. bot has been hawkish, not wanting to move on interest rates, and restraining the housing in order risks that might get out of hand. philippines have also been interesting. by governor of the central bank signaling that he sees 50 basis points worth of cuts through the end of the year. kind of an unusual signal from a central bank governor in a week that they will have a decision. most economists are seeing a 25-basis point cut tomorrow from the philippines, perhaps a signal of more dovish nesta come with all that is going on.
paul: many central banks have built up their reserves since the asian financial crisis. by you have written that those will not be much help doing this downturn. that? michelle: it is challenging in a week like this to take a big picture, but we are constantly looking at how the downturn is different from others, how central bankers are doing with it differently, and a long-term view of what it means for how policymakers handle these sorts of downturns in the economy. what we are looking at in this story is the run-up in reserves, especially since the asian financial crisis going back 20 years. a lot of banks saw the need to stock up more reserves, thailand and in the end for two are at record levels -- thailand and india, are at record levels of reserves. but what we found when talking to analysts is that this is an unconventional world.
the things we are dealing with this week our exhibit a. reserves are not always going to be a big bulwark as they used to be a guest these sorts of dangers, especially when you have these economies welcoming and easing in their currencies. so the reserves will not be there in the same way as a tool for central bankers to draw on. certainly an unconventional world. we will wait to see whether they have firepower that they had. paul: thank you for joining us, jamrisko. let's bring in our next guest, chief australia and economist for oxford economics, sarah hunter. thank you for joining us. sarah: thank you for having me. australia onk of hold, as expected, standard practice, cuts twice, then wait and see. is this just a lay by on the road to lower rates?
sarah: i think so. i think we will get one more cut this year. the rba are pretty clear that they want to see what the impacts of the rate cuts they have already done is, and also have the income tax cuts play through the system as well. but i think they will be disappointed. . i think there is a risk we could get .5% early next year, but maybe not. there are some supporting factors. although clearly, the deterioration in conditions the last couple of days, and what that looks like longer-term for the trading relationship between the u.s. and china, shows a significant downside risk. paul: when the r.b. -- rba governor took control, is he turning into an unconventional policy hawk? >> he is certainly becoming more concerned about being benny the
-- being benny the band. will that mean we get unconventional policy? i'm not sure about yet. certainly more likely than it was. it is at the top of the hit list. they want to make sure expectations are around the 2% band. and expectations are starting to slide right now, because we have had inflation below the band for so long now. that is what they are doing, firefighting with the rate cuts and what they are trying to achieve with stimulus. shery: investment has taken a hit, given all the trade tensions. what is a situation like in australia? sarah: it is interesting. looksta that we've got investment.ive for mining investment is actually starting to go up after a long downturn.
buildingntial commencements for the june quarter look pretty good. but it is a definite risk, something we are definitely monetary. in the context of the local economy we have, weak consumer spending, residential construction downturn, and this investment was something they were looking to to help drive and support the economy for the next year or so. if it doesn't do that because of trade tensions, there is a very significant downside risk to the outlook. right now, it doesn't look too bad, by the risks around the forecast are definitely to the downside. if we see that playing out, it will be yet more data and information for the rba to cut toin, and take a rate cut win 5% early next year. shery: seems to be a pretty similar situation in new zealand, week business and consumer sentiment. do we expect a rate cut their? sarah: yes, that is pretty much
a foregone conclusion. the rba signaled this one pretty strongly. it will be a major surprise if they don't cut their cash rate today. we also like to act preemptively and there are very aware of the position in the global economy, then need to maintain a rate.itive we can see further cuts in the not-too-distant future given how things are playing out. paul: a common complaint of central banks, and i am guessing new zealand, is no exception, there is a lack of government help. nothing happening on the fiscal side. is that true in new zealand as well? sarah: i think the government is perhaps arguing some fiscal stimulus. it is focused on infrastructure which is very good in the long run. it helps production capacity as well as stimulate domestic
demand. could the government do more, definitely. you've got very, very low interest rates at the moment. they are looking at running deficits and financing those has never been cheaper. dust forst majority the vast majority of developed economies as well. so they could do more and it would help domestic demand. that is something here in australia and new zealand, we are expected they would be exploring. shery: thank you so much for that, oxford economics chief australia economist, sarah hunter. there seem to be prett plenty of stocks moving in the asian session. sophie, what are some of the highlights? sophie: it depends. . back oh headed up, and this broader is also dropping. sydni says the deal looks expensive and will have to generate ¥15 billion for kirin
to reach targets. simcoe in tokyo falling as the latest guidance lag. the company expects a sluggish recovery in memory chip demand. the ceo said japan's export restrictions could also have an company. the checking in on this company, surging the most since 2014 after its earnings beat for the quarter, with sales and profits rising in its digital and entertainment segment. in sydney, commonwealth bank shares falling 2.8%, slipping for a straight session, after reporting rising profit and rising compensation costs. after its cash profit much estimates, with a capital return of $506 australian dollars. more coming up. this is bloomberg.
shery: this is daybreak asia, i am shery ahn in new york. paul: and i am paul allen in sydney. at commonwealth bank in australia fell as compensation costs surged in interest rate margins shrank. the bank is also suffering from a series of scandals. the bank customer compensation bill has claimed to almost 1.5 billion u.s. dollars. shery: intercontinental hotels is being hurt by the trade war and the protests in hong kong. shares slumped after the group 1.5%revenue per room fell in greater china in the second quarter. corporate travel in china also fell, but it was balanced by a resilient business. the ceo says the hotels in china mostly rely on domestic
travelers, but hong kong is a slight concern . paul: disney fell after reserves fell short, after spending on new streaming services and, the flop of a marvel movie. third-quarter profits fell to one dollar 35 shown -- $1.35 a share. revenue missed by more than one billion with disney saying that lower attendance reduced profit at the theme parks. paul: hsbc banking unit is about to pay $130 million to settle a criminal inquiry in belgium. it is accused of helping wealthy client to dodge taxes. the agreement must still be approved by a judge next month. the banks came under investigation after a former employee stole details and give them to persecutors. hsbc is facing a similar program in france. coming up next, we preview what
♪ >> this is daybreak asia. i am risk a group to with the first word headlines. the trump administration is keeping up pressure on china, slapping tariffs on more than $4 billion of wooden cabinet imported into the u.s., another small step in the trade war but comes as the u.s. administration prepares to publish a final list of goods to be hit by far greater duties. president trump imposing tariffs on 10% on $300 billion on imports and threatening to go higher. the st. louis fed president says he is on the expecting one more rate cut this year. he told the national economist
club in washington that it is important to watch the data meeting,the fed's next but that little has changed since june when he forecast a .5% cut by the end of the year. >> the nature of a tit-for-tat trade war is that there are threats and counterparts are occurring all the time. some of these might be implemented, some of these might not ever get implemented, by the nature of the war's you have tit-for-tat going on all the time. it is not reasonable for monetary policy to respond to these threats and counter threats. >> regulators in singapore and india have approved a stock trading link, ending a year-long dispute that left investors with no easy way to hedge risk. the proposed connect between the two exchanges is expected to earn approval and be operational by the end of next year. the two sides traded barbs last year after singapore announced plans to stock futures on some of india's companies.
north korea is being accused of hacking into both traditional and high-tech financial systems to funnel cash enter into nuclear weapons program. pyongyang is reported to have amassed about $2 billion from financial institutions and crypto exchanges. kim jong-un has 30 agents working overseas reportedly working on bank accounts and money transfers. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. paul: thank you very much. let's get a check on what is happening in markets with sophie kamaruddin in hong kong. sophie: a mixed picture for asian stocks. the regional benchmark with little change after a five-day decline. the cost be done .10%. chipmakers gaining ground. samsung giving a boost to the index.
weighing on the topix after its results. . the dow was under pressure this morning, helping to boost the regional forex. yuan is on the back foot was again. a daily fixing focused at the stability.aled some names to watch as we expect earnings from the likes of toshiba, dentsu, and softbank. softbank is very much in focus, the stock is set for a fourth day of losses. paul: all right, sophie, thank you very much. softbank is set to report earnings after the close in tokyo later on. their profit is expected to more than double than a year ago. this.porter is watching
what should we expect for the first quarter? nini good morning. in terms of actual numbers, i think net income is a fairly clerestory. to book asoftbank one-time deal from the sale of , a complex stake transaction that lasted three years and involved derivatives and unwinding of those , will potentially boost profit as much as ¥1.2 trillion. profit isting always more unpredictable. this first quarter, i think the ipo of slack was a potential positive, but year-on-year, it is possible that profit will decline. i think people would really want to hear what is -- what the bank will have to say, not least of that is the creation of the second vision fund, around which there are still a lot of questions.
shery: let's talk about the vision funds. what economists want to hear from masayoshi son? beel: we know that it will ¥100 billion, the softbank will consider 38 billion to contribute, which puts them in the position of the biggest contributor. it is quite a contrast from the first fund, where 45 billion came from saudi arabia. for a lot of people, they were counter weight to masayoshi son judge authority. so people are waiting to know whether there will be other shareholders, and for softbank investors themselves, they will be interested to find out how son plans to pay for the 38 billion contribution to the next fund. shery: they are also nearing an approval merger with t-mobile. could we hear anything about that? pavel: it will be quite a big
event for softbank if it does happen. while it received d.o.j. approval and the f.c.c. has been very positive about it, they are still working their way through the courts. just last week, texas joined about a dozen states who are challenging it on antitrust basis. one thing someone pointed out is that when sprint merges with t-mobile, what sort of impact it might have on softbank. the biggest thing is ticking off about $40 billion worth of debt off softbank's balance sheet, which would make a lot of those rations look a lot better and probably have softbank's expense half in -- probably softbank's expense costs in one fell swoop. much. thank you very markets are watching to see if the pboc will continue to support the currency. says the fixing
but not deviate too far from what we saw yesterday. we crossed of singapore where mark cranfield, our mliv strategist joins us now. expect today? mark: if you look at the performance on the onshore yuan, it traded quietly against the u.s. dollar and never went low 7.01 against the dollar. you look at the performance and also at the last couple of fixings, how they have been done, yesterday's was just below 6.97. it gives the pboc reason to make a big change in the fixing today. it will probably be within a small amount of what we have seen the last couple of days, unlikely to the above 7. no reason for them to lower it too much, anyway. it should be a relatively quiet fixing.
i think that pboc is steering the market towards getting used to a slightly higher trading range for the dollar yuan. it does it wanted to go crazy, but it also wants people to get used to the fact that something has changed. we will allow the yuan to gradually weaken and it will follow the markets lead. so we can expect to see all the coming days and weeks, a slight increase in the movement. we might see the dollar yuan go back-and-forth, up and down line.the 7 that pboc a think want people to get away from the idea that this was ever an important thing to them, it was never really that significant, and they can show that by allowing more fluctuation. eventually come of the fixing will probably move to a higher level, but it will take some time before you get there. that pboc wants to let the market do its work and let the natural ebb and flow take place. paul: mark, the pboc always said that the 7 level was not a line
in the sand. but if really were to wait and let the markets their work, how well would the yuan settle? its prospects would be substantially weaker than it is now. pavel: yes, we have seen a slew of another's the last couple of days revising their forecast -- a slew of on a -- a slew of analysts the last few couple of days revising their forecast. you look at markets the last few days, that is also the kind of range rather has been a heavy concentration of options, 7.5.ng between 7.3, that seems to be the area where traders and analysts seem to think there is a possibility. if you look at that taking place over one year, that is quite a gradual change, not something that will happen in the next few days. and if it does take place in a slow-moving environment. it shouldn't be too shocking to the
wider world. if we look at the performance last year for example, the dollar yuan gradually kept up, then we got to 6.90 having started at 6.40. we can expect to see something like that in the year ahead. not too dramatic. by the fact that we have gone through 7 in the first place is bringing some alarm bells and we have already seen it was on from washington. but i think the direction has been set and it is unlikely china will want to go backwards from there. shery: let's talk about the past four treasuries. we saw the rally this week paring back a little bit during the u.s. session, but now, yields again are under pressure. where are we headed? mark: you heard james bullard speaking and he made some very important points, saying that the u.s. federal reserve cannot respond to every tit-for-tat in
the trade war. in the same speech, he mentioned made-curveis a adjustment interest rates, that the rate cut last week was something of an insurance policy move. that is trying to tell traders that this is not an open ended series of rate cuts coming. so it is not surprising that the yield curve has flattened. some people will be thinking there is a risk that the fed could end up being behind the curve if the u.s. economy slows to quickly, so it is not surprising that they would want to go for longer-term maturities and push the 10 year yield down in relation to other maturities. mr. bullard's response will be the widespread remark from the we can expect a very slow process in terms of rate cuts, and maybe only one more this year. so the curve will may even go -- might even go inverted in a few months time. shery: mark cranfield, thank you
so much for that, bloomberg mliv strategist. of course, you can follow more on this story and more of the markets trading on bloomberg at mliv , and also get a market run down in one click. there is also commentary and analysis from bloomberg's expert editors. coming up next, clp ceo richard lancaster joins us exclusively to chat about electricity generator's first half results but after the break. ,this is bloomberg. ♪
hong kong dollars in the first half of this year. joining us exclusively from hong kong is the ceo, richard lancaster. richard, great to have you with us. you are challenging australian markets in the latest results, how long do you expect those headwinds to last? siding: we were actually headwinds this time last year when i was reporting exceptional earnings, 33% above the previous half-year. we were at that time flagging some changes in our business, one of them being the change in the permitted return in the hong kong business. we had sold down 40% of our indian business and we were also flagging some challenging regulatory changes coming up in australia. so with our results today, we are back to 30% down, whereas we were 33% of this time last year.
we have also booked an impairment, a reflection of the value received see in our retail business in australia over the life of that business. when you compare it to a half year set of earnings, it reflects a loss. but this is non-cash, it is a one-off impairment, essentially resetting how we see the value of the energy in australia business. shery: what does that mean for the second half and? richard: fundamentally come our business is in strong shape. we have a nicely diversified business. our core market in hong kong, we're seeing growth. we need to continue to invest here to meet the government's curb and reduction objectives. we have growth in mainland china and india. in australia, we have a strong position in the market there, a strong position in the retail business and wholesale generation portfolio that
matches our retail business there. the retail industry in australia is going through transition, partly to deal with climate change, but also, it is a very competitive market. energy prices have been rising. so regulatory changes have been coming in. but we believe the fundamentals of our business are strong there. paul: what are your plans for energy australia? to turn theny ideas business around or is divestment a possibility? richard: we view australia with a long-term outlook. we do see it as being a good market to include in our portfolio. our approach there has been to concentrate on the fundamentals, keep our costs as low as possible, make our businesses as efficient as possible to deliver the best possible customer service. we are seeing greater penetration of renewables into the energy market.
that has partly contributed to more volatility in prices. so we do see opportunities to technologies that can help reduce but volatility. that would be good for our business, good for customers, and good for the industry in general. paul: you are describing a challenging situation in australia, and energy market that is in transition, as the coal-fired power plants begin to shut down. just wondered how much of a jerk is one of those regulation challenges? that retailer reliability obligation, it means you have to supply power in times of big demand no matter what. how much of a drug has that been on your australia business? richard: having a wholesale generation portfolio that is roughly matched to our retail
business means we have generating capacity that is under our control that can meet the retail obligation. when there are problems in the system, we elect to be a way to access backup capabilities -- we like to be a much access backup capabilities. we are also looking at making investments ourselves in technologies such as pumped hydro storage, using large batteries, and working with our customers to help manage demand. so having a more flexible set of tools will help us manage that. that is the advantage of our business. where we operate in hong kong, it is a matter of making sure we can provide reliable power, so we have the skills and the know-how. shery: and in order to do that, you are beginning construction of hong kong's first lng terminal. are you on track to do that by early 2020? richard: we are making very good progress. we have recently signed an lng
supply agreement, and also contracted for a floating storage vessel. so we are getting the final permitting completed in the second half of this year so we should be ready to start construction early next year. shery: the lng deal you signed with shell, what is the annual volume shell was supply -- will supply? richard: that will change over time, but we aim to have a diversified supply of gas into hong kong business. we have gas still from the south china sea, still get gas from the west-east gas i plan coming all the way from central asia, so energy will be the third leg of that, roughly one third of our gas volume will be coming lng. paul: how do you see the prospects for nuclear energy in china, are you increasing your investment? richard: we have stepped up our investment in nuclear energy
with the acquisition of 17% of nuclear station there. that project has reached completion. six units of the. power station were commissioned in the last month of july. so that is one big investment we have just made. we do see prospects to continue to invest in the nuclear industry in mainland china. the thing is, these are big doestments, and we don't these as frequently as we may do as with renewable investments. paul: all right, thanks very much. clp ceo richard lancaster, joining us to discuss china power results. don't forget the tv function, you can watch us live the and catch up on past interviews, as well as dive into
regulations for ride hailer's, bringing in their safety will close in line with taxi operators. this comes six years after ride-hailing apps hit the streets of singapore. before that, there were 28,000 taxis. today, there are only about 20,000, and 45,000 private hire cars. they provide about 6% of all journeys in singapore. paul: occidental is selling $30 billion of debt to help pay for anadarko. the offer comes after occidental received orders of more than 75 billion, the biggest amount for a debt phil since saudi aramco received more than $100 billion in april. it shows that investors are willing to take a risk despite the trade war reducing volatility in global markets. shery: this company is in talks to sell a stake in universal music to tencent. it would value the world's top music business at more than $33
billion. the efforts to sell universal stake have, stumbled as equity investors bought at the terms. but the company says it is discussing corporation with tencent, and once the chinese company to promote universal. paul: president trump says he is keeping a close eye on google, to reaching more accusations a that the search engine is working against him in the run-up to the election, despite a meeting with ceos, in which he was assured google has no plans to influence the results. google has repeatedly denied the president's claims and dismisses all suggestions of the local bias. shery: a mixed picture across markets. let's preview what to keep our eyes on later this morning, sophie. sophie: it is a busy day for central banks in the region. the r.b.i. expected to cut rates 25 points today, but the bank of thailand is seen holding steady.
expert data is also due from indonesia and taiwan. export growth in taiwan may have picked up 2% year on year in july. we will also get foreign reserve data from across the region. central banks will be that to the test as currencies have been sliding. china's drop in july. we also get assets for hong kong likely to remain under pressure today. the hong kong index had its worst losing run since 1984, falling for a 10th day, oil volatility surged as it grapples with elliptical instability on top of trade war wpes. watch for the hang seng to wipe out its meager year to date gain. kospi is also suggested to be settling, into a weaker trading range as markets wait for today's daily fixing, after tuesday's better-than-expected reference rate.
jpmorgan calling it 7.40 by 2020 seeing itclays at the 7.21 range, paul. before we handed over to bloomberg markets: asia, let's look at how we are trading. we have clawed back to positive territory in australia after a couple of days of heavy selling, higher by a little more than .1%. the nikkei higher by .5%, the percent.ack up by .25 shery: u.s. futures under pressure, now 3.10%. the offshore and one is at 7.06. this is bloomberg. ♪
>> it is not :00 a.m. in beijing and singapore. welcome to bloomberg markets: china open. david: we are counting down to the open of trade in hong kong and up on the chinese mainland. president trump keeps up the pressure on china with a new set of tariffs. the final list of duties may be published within days. >> rising trade tensions send investors seeking safety. gold is heading towards $1500, its highest level since 2013. david: markets await more central-bank decisions. st. louis fed president says uncertainties are certainly