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tv   Bloomberg Daybreak Asia  Bloomberg  September 18, 2017 7:00pm-9:00pm EDT

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anchor: president trump prepares to address the united nations, having criticized what he calls its bureaucracy and management. >> the administration's top trade negotiator saying it is an unprecedented threat to business. >> just are warning higher interest rates could trigger a new recession. when it looked like
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regulation had choked off the bitcoin rally, the backocurrency has roared to life. i am haidi lun, coming to you hear from singapore. betty: i am betty liu from bloomberg's global headquarters in new york. one day, bitcoin is dead, the next day, it is back to life. make up your mind here on bitcoin. no recession at all when you look at the u.s. equity markets. let us will the boards here. record run here, a .5 years into the bull market, the sp hovering above that level. the dow higher by 63 points. the nasdaq gaining .1%. as investors, the fed meeting on wednesday, and janet yellen this time, talking about quantitative tightening, right? rolling back on the balance sheet. haidi: it is this idea that a quantitative easing has given birth to his 8.5 year bull market as you say, it seems a
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little illogical or concerning that the market seems to see quite a bit of tightening. it is not going to have much of a negative impact. the big question going into the trading week was can the bulls and fresh impetus inspiration in a week voted with a potentially revolutionary meeting from the fed when they start talking about this unwind? we are still pushing fresh records. take a look at the setup for asia because we are seeing potentially a bit of upside when it comes to the asian open as well or it this is how we are trading in terms of new zealand. the kiwi dollar at 7259. the u.s. dollar holding that drop. ofot of money coming out haven trade despite fresh concerns over north korea. sydney futures up ahead of the open, up by .1%. the aussie dollar falling, under $.80 just looking for whether there
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is any signaling of a change in policy start there and just a roundup of how we are seeing futures shape up for the trading in tokyo. japanese markets closed at the start of the week. nikkei futures, pretty flat start to the opening, and that is how we are looking at dollar-yen at the moment at 111. betty: let us get to the first word news with emma chandra. a emma: a body he frequently derided during his election campaign. earlier, he spoke to a committee on reform where he softened his tone, saying bureaucracy and mismanagement prevented the organization from achieving its potential. the president will meet to build relationships at the u.n. as he seeks to take on iran and north korea. pres. trump: in recent years, the united nations has not reached its full potential because of bureaucracy and
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mismanagement. while the united nations, on a , has increased by 140%, and its staff has more than doubled since 2000. we are not seeing the results in line with this investment. emma: meanwhile, president trump to xiby telephone jinping, aiming to step up the pressure on north korea. the leaders agreed to enforce u.n. sanctions in the hopes of persuading kim jong-un to give up his nuclear program. china has been a critic of u.s. policy on north korea, saying diplomacy is the only way forward. washington says beijing must do more to rescind its belligerent -- restrain its belligerent allies. -- an unprecedented threat to world trade. lighthizer says the sheer size of china's model creates a natural champion. he said he had many complaints from american business figures.
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they are not designed to deal with an economy of such strength as china. in the u k, the brexit drama has turned another page with the foreign secretary hinting he may quit over policy differences with prime minister theresa may. the pm said his critical comments were unauthorized, and she remains in charge of the government. the whole brexit debate is frustrating britain's partners with ireland saying the u.k. is making a fundamental mistake. >> they need to move from the current position. i speak as a friend of the u.k.. i spent much of my life in britain. i was in university, but i believe they are making a huge mistake at the moment in terms of their current approach to the brexit negotiations. emma: global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. you so much for
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that. you are all caught up today. let us get a closer look at the latest record rise. we are continuing to see a respond tone aided in the session by a multibillion-dollar deal across defense and the sector. su keenan is here with more. fire ine plenty of them. su: the strategists continue to talk about the resilience of the market. some modeling shows even the event of war, historically, u.s. stocks would show a rather abrupt bout of risk aversion and then recover quickly. you look at the green on the screen. no risk aversion insight. let us go to the big movers. making the chips favored by cryptocurrency favors . translation, the bitcoin industry. those things taken off. the third stock, doing really well.
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up 182% year-to-date. it makes semiconductor devices. it took off. if us go into the bloomberg we can. g #btv 9533, because all and is the title of the stock. how much higher can the stock market go. if you ask the average investor, which is what the michigan consumer survey showed, most consumers, a record number in stock marketee the going higher, and those on wall street would say "hey, that is a contrarian indicator when the average guy in the street says it is going higher." betty: run for the hills then. let us talk about the big deal of the day. the $7.8grumman and billion purchase of orbital. that was big news today. su: they like to see deals of this size. northrop grumman, a major contractor, now with their
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purchase of orbital hek. they are going to be a major space industry and nasa contractor as well. you can see the stop was moving higher, going into the purchase. let us take a look at the intraday movements because typically, it moves down. northrup only moved higher, as did orbital. orbital, upor of along long for the ride. for a similar deal. if you go into the bloomberg, you can see this is a product revenue mix for orbital atk. blue and yellow are defense and that is what northrop grumman gains in the deal. wall street seems to love it. haidi: indeed. quickly, we'll briefly rising above that for the third day. again, falling back, failing to
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hang onto the gains. metals on the move as well. what is the story we are seeing their?? su: a lot of veteran traders will say we have reached a psychological wall. we have not been above 50. that has proven true as refiners come back online. a lot of geopolitical risk has been shrugged off. copper had a great run this year , and even with weaken the numbers out of china, it continues to move higher, and we andsome big moves in zinc some of thee other metals, which is contrary to what you would think. betty: thank you so much, seeking income on the markets. this relentless bull run in american equities has seen another milestone. we saw the s&p topping 2500 for the first time. it is the latest notable mark in what is the second longest bull market in u.s. history. joining us now to break it down
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is strategist christina cooper. pull together this chart i have on the bloomberg, g #btv 5079, and it shows you the power of these bulls. they brought the markets up to the 2500 level, but what is interesting is we have not had a 5% correction since brexit, which is why some people are getting nervous and others are calling this may be the most hated bull market because it just does not make sense. what do you say to this? guest: actually, i think that trump's deal with the democrats, the dealing he has done over the last two weeks, has breathed new life into the stock market. one of the big catalysts for the stock market last fall was the -- exactly. would have a we congress and president of the same party, progrowth agenda, and everything would get done. then, that vision started to
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deteriorate and disintegrate before our eyes, and i worry for a long time about how expectations were getting well ahead of fundamentals in that kind of environment. but actually, these deals he has been willing to work with democrats, i think, -- betty: you are talking about daca, the debt ceiling. funding the government temporarily. that suggests that actually he could get some items on his agenda accomplished and in particular, the progrowth agenda items. breeds new life into this rally. i worry about valuation, where they are. but i am not as concerned as i was three or four weeks ago. betty: would you say that there is -- there is momentum, though, even if you believe tattooed for now is possible. it is not dead. there might still be something done. you see that momentum still behind the equity markets? kristina: the momentum behind
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the equity market that has been there since the global financial crisis has been created by the a very'sthe fed has stork coming up, where it could start qe. i would suspect that is going to create some headwinds for the stock market. we will see. it is certainly a very thoughtful, slow, deliberate plan. my base case would be that it does not rock the stock market. it could create a headwind. betty: but why would it? why would it create any headwind? it hasa: only because such an impact on the stock market as the fed's balance sheet was expanding. that wes to reason could see some impact in the opposite direction on the stock market as the fed decreases its balance sheet. the point is that it is unprecedented. we have never had to do this
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before. it is extraordinary when it comes to this. is there a sense that markets, you know, are not pricing a potential bout of volatility? goldman's maintaining their target for s&p. that is still an earlier correction of 4%. kristina: you are absolutely right. this is uncharted territory. i would expect that even though the fed remains very accommodative, and frankly, monetary policy around the globe is quite, native, that we need to be worried about protecting on the downside, because we could see some part a stock market downturn. not only because every day that becomesly continues, it more likely we see some kind of correction, but because we do have headwinds forming. haidi: what would you look at, an ideal portfolio over the next three to 12 months, as all of
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unwinding. have investors saying 10% should be in gold or cash. is that a little bit extreme or what would your positioning the? kristina: that sounds a bit extreme. this is an environment where we want to be very well diversified. within stocks, we want to be diversified around the globe and we want to have a healthy dose of dividend paying stocks you within the fixed income we want exposure to a wide variety of sub asset classes because we are in uncharted territory. we do not know how specific fixed income instruments might , as i like to call it. we want a significant exposure to alternatives, which can offer downside protection just because they are not as closely correlated with equities and fixed income, so for example, commodities, gold, and other alternative some asset classes
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makes sense in this environment. we want exposure to risk assets, so we can participate if the stock market rally continues, but we also need to protect -- betty: you mentioned earlier that if there was anything to worry about, you would be worried about valuations here in the market, right? what you like tech shares. valuations,k about there are certainly overpriced stocks in that sector. if you look at the s&p tech group, this has been the best performer come up about 26%. why do you like tech? kristina: a few key reasons. first and foremost, revenue and earnings growth look good to the end of 2018. it is also a space that is probably more immune from the vagaries of the trump legislative agenda, so whether it succeeds or fails, the technology sector is fairly immune to it, unlike areas like health care or if the
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structure often related areas in the stock market. in general, the growth is there. revenue and earnings. fundamentals are solid. valuations relative to historical valuations within the tech sector are attractive. stay with us. we now take a look at the stock markets. we will focus on the bond markets with you. ,ristina hooper staying with us talking about her fixed income strategy. citigroup telling us how the u.n. is forcing the pboc's hand. this, next month. this is bloomberg. ♪
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haidi: we are counting down to asia's first major market open this morning. u.s.d have a very strong stock continuing to push record
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highs. it has been holding about 2500. nikkei futures looking like a positive start. up by .3%. japanese markets have been closed in the monday session, seeing pent-up activity. this is daybreak. i am haidi lun in singapore. betty: i am betty liu in new york. we were just talking about stocks. let's talk about on. bond market bowles pulling in s pulling in their horns. what it says about the start date details of that qt, quantitative tightening. with more,ys here and cap mean, there are not any big economic reports out of the u.s., so it is the focus of the fed. kathleen: just waiting for the fed. we are looking at two questions. rate hikes, not this month, but what about the rate hike half? that is what the fed could reveal. let us start their because we know that no fed hike is
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expected when the fed wraps up the meeting. is downce of a hike below 30%, so people are moving more in that direction now. officialsecause fed seem to be pouring in that direction. does that every three months. in a bloomberg survey, 75% of economists we surveyed said that no change in the inflation forecast is really significant because inflation is running so change.w, suggesting no will they change the dot plot? one of the 12 who see one more rate hike at least this year change? that is something people will be watching. people are pretty sure, after so signald officials sai this, good time to announce the apple data is a september meeting, and start the unwind in october. the bond market is apparently responding to the uncertainty we
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see. #btv 16. managerssee is asset are sprinting for the exit, according to data from the cftc, the trading commission. contracts oftheir the lowest of the year. .uite a move going on bloomberg intelligence of course saying the fed is going to have to learn to say go. watching paint dry. the fed officials will be recently that this is not quantitative tightening. quantitative easing is buying bonds. quantitative tightening is you actually have to be selling bonds and not reinvesting the protein, he would say is what we are doing. we shall see. the bond market looking -- the bond market is already looking pretty nervous. betty: yes. [laughter] betty: kathleen, thank you so much for that. haidi: let us bring back into the conversation kristina hooper to get her thoughts on the fed meaning and the implications
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when it comes to the treasuries market. kristina, i just want to show throw out this quick chart. 4010 on the bloomberg. you have in the red those in the recessions. qe2, and qe3. how expensive and extensive qe3 has been and how you imagine the unwind would be as well. what do you expect us to do to u.s. markets and is it also another kind o spanner in the ? kristina: my expectation -- another spanner in the works? kristina: what we are likely is the tradinged something so gradual and thoughtful. especially since they allow themselves a little escape hatch in the plan they released in june, such that if economic conditions change enough, they for ae send assist qeing
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and continue to reinvest. that ise enough, thoughtful and deliberate enough, and there is enough think the hatches involved -- enough safety hatches involved. we might see initial hesitancy and concern on the part of markets. my big concern is i do not think the market is considering the other pieces of the puzzle with regards to the fed. of seats open lot on the fomc. we have no idea really who will throw them. we have some idea, but not a great idea. betty: we only have a few seconds left. do you think we will make it to 3% on the 10 year this year? kristina: no, i don't. [laughter] betty: despite the direction we are seeing in yields -- all right. kristina, thank you so much. kristina hooper, thanks so much for joining us.
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plenty more still to come on "daybreak asia." this is bloomberg. ♪
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betty: this is "daybreak asia." i am betty liu in new york. lun ini am haidi singapore. a quick look at the headlines. sources telling us that were facts learned about -- wascompany says the breach not related to the had that compromised the privacy of 143 million users, but we are being told the breach involved the same intruders. they may face a criminal investigation into whether they broke insider trading laws when they sold shares before disclosing the hacks. betty: cbs has sweetened its bid. administrators agreed in august to sell the company. news corp. cochairman lockman
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murdoch and australian media mogul scored and made a rival bid. creditors are due to vote today. us is said to be on the verge of going bust as they file for chapter 11. that would send the largest toy chain to court, dealing another blow to traditional retailing, already reeling from store closures and the rising challenge from e-commerce. toys "r" us has struggled to -- they loaded the company with dbet. bidding for toshiba's chip unit is proposing a special guarantee against losses that battleult from the legal with western digital. the unattributed report says the guarantee could be worth almost $450 million. toshiba is aiming to finalize the sale of the chip business at wednesday's board meeting despite western's opposition. up next, bitcoin roaring back to life.
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why even stringent chinese toulators are not enough give the cryptocurrency down for long. just a few days. this is bloomberg. ♪
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haidi: it is line: 30 a.m. tuesday morning over in sydney. markets in sydney, 30 minutes away from the opening of trade. p.m. here in7:30 new york on this monday. we kicked off a big merger monday. markets closed higher, keeping the record run on the s&p. beautiful. last days of the summer here. i am betty liu in new york. haidi: i am haidi lun in singapore. you are watching daybreak asia. let us get you the first word news with emma chandra. emma: china has increased its holdings of u.s. treasuries to the most in almost one year. an indication that is succeeding.
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rose to $1.17ing trillion in july, an increase of more than $19 billion from a month earlier. japan owned 1.1 one trillion. $1.11 trillion. they want to give greater access to china's financial services industry. a bank meeting later today will discuss the proposals and review feedback from institutions. the plan may allow foreigners to control their local finance sector and raise the current 25% ceiling on ownership in chinese banks. u.s. policymakers have been warned that higher interest rates could trigger a new recession. got minor told bloomberg radio that if the fed sticks to its plan, short-term rates will be high enough to affect corporate borrowing and affect the session. 3% by late 2019, more than twice
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its current level. , accusedion has begun of defrauding a client in what prosecutors say is a clear case of from running. johnson allegedly caps off traders about a $3.5 billion drilling trade. that benefited the bank at the expense of its client. hsbc is not a defendant, but it has been under u.s. criminal investigation over currency trading. global news, powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. haidi: thanks for that. let us get more on what we should be watching as trading gets underway in asia. a very event risk heavy week. he them investors are really sanguine as well before the fed.
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>> we have that picture here. smoothvestors are seeing sailing ahead. you can see that play out on g #btv 5009. this shows you the biggest etf in that sector. this shows you that volatility for the has fallen to a record 10.1%.w at that is unheard of compared to the five-year average of 18.6%. why are investors looking thing would? optimism around economic growth and corporate profitability, which has been offsetting concerns around central bankers taking with a punch goal. investors have pumpkin around 8 $8 billion.umped in betty: aren't equity valuations looking a little bit stretched? sophie: several analysts believe so and ubs is among them. em stocks have gained 29% this year, the index rising at the
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fastest pace since 2009. this week, it pushed above the 2014 high, so you can see that on g #btv 5007. the msci e.m. index trading at 2011 highs. they are cautioning that em valuations are getting stretched. that will take more than higher pmi to keep this rally going. jpmorgan, they have downgraded as prices are outpacing estimates, which has sent earnings yields to near 2010 lows. you can see this and the bottom panel of this chart. the gap with 10 year treasuries has narrowed to the smallest in about five years. this could turn out to perhaps be a bit of deja vu because we have seen the scenario before. this year and in 2016. has managed to tough it out. g #btv 5008. markets barely flinched.
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up, those areds likely to grind higher. investors may be content to buy and hold for now. start investors are spooked by of this qeal end era. in asia, you have stocks in manila touching new highs, and investors looking sanguine. the party could keep going today. we have futures pointing higher. betty: ok. certainly going to be watching that. thank you so much, sophie. sophie kamaruddin. chinesen it looked like regulation had killed off the bitcoin rally, the cryptocurrency has word back to life despite some of the naysayers like jp guy been -- jpmorgan. left for dead, the next minute, revived. what is behind the latest surge? >> it is pretty wild. bitcoins are 4000, which is a pretty dramatic shift from the
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end of last week, around 3300. it dropped because china had outlawed the initial point offering some ideas for -- initial coin offerings, ico's. we have even seen some of the exchanges announced plans to shutter operations already. today, we saw news that these regulations might be more severe than we initially thought. despite all this, bitcoin has bounced back. technical, might be recovering from those lows, but it could be a sign that people view this cryptocurrency as very asilient, and they view it something that could be independent of government regulation and it might arrive the regulation even though it is some of the most akoni and
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regulation we have seen to date in the world. betty: we saw that reaction to .t right away what are some ways people might get around the new chinese regulations? lily: that is another reason the price could be bouncing back is some potentialre for these regulations. people could use other exchanges in other countries because china bans exchangesnd doesn't mean people can't just use it as an exchange. there are also some encrypted messaging services emerging that people are shifting to to , solitate transactions these new regulations do not necessarily signal the end of bitcoin as we know it. lily, china's the regulations seem pretty
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draconian. have we seen anything like this in the past? authority is china came down pretty hard, and some of it seems to be a knee-jerk reaction. lily: we have seen attempted regulation in the past, back in 2013. some regulation around financial companies. they banned them from making bitcoin transactions. there was another crackdown in 2009. despite these regulations, bitcoin this year is priced at the strongest it ever was. some investors might see this as regulation --ed attempted regulation that might not pan out. that said, it seems like a pretty strong crackdown, so we will have to wait and see. haidi: is that the way forward though? are saying it is inevitable that other central
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banks and regulators are going to have to follow suit in regulating this and potentially tightening the market. lily: yeah, i think people have said there is a lot of fraud in this market. it seems like a market that does need regulation. it is tough. it is a tough market to regulate because it is such a. it is unprecedented what is going on. you saw the sec in july say it is a digital token, and should be regulated like one. they are monitoring a bunch of ico's to see if they are breaking any rules. it is kind of like this uncharted territory and my guess is we'll see more and more regulation. lily, thank you so much for that. such a fascinating area to be watching at the moment. a different story every day when it comes to that bitcoin rally. bloomberg first word equities reporter, lily katz.
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ford has rekindled the partnership with indian suv maker messenger mahindra. they have formed a partnership to cooperate on electric cars and distribution in what is said to become the world's third-largest car market. it is a time for ford. the indian business was put under review. betty: nissan, off sunday, red and renaud want to reduce imports. deadline has been extended. the 200 million dollars deal for electric vehicles would replace government cars operating in new delhi. haidi: the first public bond fell in more than 20 years with strong demand overcoming the fallout from the 2011 accounting scandal. orders for the note came to 2.7
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times the $19 million on offer. shares have risen. upadmitted a 13 year cover of investment losses. remember that? betty: i remember. ryanair sees a $30 million profit hit after scrapping hundreds of flights through the end of october because too many pilots had vacation time. europe's biggest discount airline has apologized and promised to compensate for hundred thousand affected passengers. the airline screwed up and will suffer reputational damage from the bungle. haidi: how china plans to give foreign investors more access to its financial services industry. this is bloomberg. ♪
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haidi: we are counting you down to asia's first major market opens.
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fresh highs for major u.s. indices. the ages.espect nikkei futures coming back online, up by a .3%. this is "daybreak asia." i am haidi lun in singapore. betty: i am betty liu in new york. be grantedestors may greater access to china's financial services industry under plans being drafted by the nation must central bank. the pboc will meet to discuss the reforms, according to bloomberg sources. tom mackenzie joining us from beijing with more details on this. what kind of access are we the pbocbout? tom: will be meeting today, tuesday, as you said. this is an exclusive from my colleagues sitting behind me. they will be working with the chinese institutions on some of these proposals. in terms of what we are talking about, some of the top lines -- the jv structure. financial institutions currently have to set up a jv in terms of
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the financial sector operating here in china, with a cap over 49%, the maximum ownership they can have. their discussions now as part of these proposals, that could be lifted. the foreign institutions could have a majority stake. the other possible thing that may come out as a result of these reforms is an increase in the ceiling, the ownership for foreign investors for chinese banks, currently set at 25%. that could increase. the other element we have heard about is potentially allowing some of these foreign financial institutions to be involved in the clearing of yo uan-denominated bankcard services. they will be moldova by the -- mulled over by their counterparts in beijing. betty: are these possible changes one-off or a broader push to liberalize the financial sector? lily: -- tom: they are part of a broader but gradual push to
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reform the financial sector. we heard from the pboc governor in june, saying that he did not think it was healthy, basically, to have domestic institutions protected. there was a need for competition . otherwise, you would damage the financial instability, something the policymakers are keen to avoid. the other thing we heard in august was from the chinese cabinet saying they wanted to certaincertain sectors, financial sectors, social security, banking, insurance. also electric vehicles, by the way. it is part of a broader push, but it will be gradual. clearly, there is not going to be some positive outcome for this, particularly from institutional investors and institutions looking to expand their footprint in china. the jv structure is going to be top of the list, really whetting peoples' appetite. haidi: who is set to benefit? tom: we have the likes of morgan
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stanley, jpmorgan, ups, and we heard from jpmorgan last year. they sold off or exited from their jv structure because they were waiting. we heard from jamie dimon in june this year saying they are working with regulators to try to get full ownership. you expect those institutions are going to benefit and be happy with these proposals if they come to fruition. we have also seen last year that fund managers are allowed to own 100% of their funds operated here in china, so you have the likes of bridgewater, fidelity, setting up their operations and playg to expand effort and a part in the money management role. there is a number of winners, potential winners from this, if these proposals come to pass. we discussed, we are waiting for the timetable of this, the timeline. we may get details out this week, possibly. haidi: thank you so much for that, tom mackenzie. let us bring in the chief china economist for his take on, you
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know, -- is it likely to be a game changing set -- this package of financial reforms? >> this could be seen as part of the promise he tried to make in negotiation with the u.s. in the so-called plan. in a very good position to push ahead with reforms after the party congress. politically, we expect president xi jinping's position to be strengthened more by the core of the party. that would improve the policy delivery. economically, we have seen china's economy growing at a solid pace. gdp growth is likely to grow, to be about 6.8%, hitting the official target of around 6.5% through the financial market also, quite stable. the stock market rallied. and the foreign-exchange, the
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renminbi exchange rate, stable, and appreciating against the u.s. dollar and currencies. a sweet spot for china and i think for the market participants in china, right? because you're looking at some companiesefactors of no longer having to rely on sop banks. would be governance improved. you get more international investors scrutiny. from these comments that robert lighthizer made overnight about how the threat almost that china poses with its financial operators is a financial market and becoming more intertwined with the global markets. do you think there is that systemic risk that is then being introduced to the rest of the world? ding: i would say china would still have -- going to take a very measured steps in its financial reform. they were opening up further to
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introduce more competition, but i would say maintaining financial stability or the financial security is still the utmost importance for the government. so take for example the cryptocurrency liberalization for example, they will move forward whenever the market is stable and the foreign-exchange rate expectations are stable and outflow is eased. this is the conditions to move ahead with reforms. china will not sacrifice financial stability as a result of further opening up. i want to ask you about the chinese currency and this acceleration. do you think that in some ways having the fed start to announce its tightening program, right, is that going to help alleviate
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perhaps some pressure on the chinese yunan? recently, thesay, central bank now focused more on the basket of currencies instead of the bilateral exchange rates between them and be -- between renminbi and the u.s. dollars. it would appreciate by more than 5% since the beginning of the year, but it only recovered the at its valueook against the market of currency. for example, the time foreign-exchange trading system, tominbi index just recovered 95 recently. the index of 92 to 95 appears to be a profitable range for the central bank. i think the exchange rate now already reached what i see the upper bound of the range, so i
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them and the -- the renminbi continues to face pressure, it could have capital until measures to release some of the day land, supply and demand effects back to balance that of, for example -- betty: what do you get the sense that the pboc is pretty relaxed about this appreciation? almost 7% rise we have seen so far in the currency. gottenlieve they have enough firepower and levers to pull if it continues to accelerate? ding: i think the central bank will feel comfortable to some extent. that is, i think, it will not you road the external competitiveness. 95, the index reaches
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authorities will start to worry about external competitiveness. that is why we see some recent renminbi fixing. especially against the basket. they start to introduce some relaxation of the control measures, including the recent removal of the reserve requirement on the forward selling transactions. we are going to have to leave it there. on theou so much, adding chinese currency. ceo more ahead from slack's after they got a slice of softbank's $1 billion tech fund. this is numbered. -- this is bloomberg. ♪
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haidi: slack says it expects
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strong growth in europe and asia. they close the $250 million funding round, led by softbank's vision fund. we spoke with the ceo, stewart butterfield. early,re relatively although we have gone fairly large. growing as quickly as we can, so we had our first user conference in san francisco last week. significantly, we are in german, french, and spanish. that is why i'm here in london, kicking off the european tour. we have very little ability to predict how fast we are growing. >> i love that you have a european tour. you are from vancouver, so maybe it will be like heart from long ago and far away. here is the issue. guys in dark suits and bowties look and extrapolation to 5 million plus and go "what kind of dumb accounting is this?"
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u.s. the ceo respond when the fancy guys in suits and ties tell you you are worth $5 billion? i do not buy it for a minute. >> i love the question. we crossed $2 million in annual trade revenue earlier and we are growing at 100% a year. 50,000 plus customers around the world. 42% of the fortune 100 and up to this point, we have been english language only, so we set strong growth in europe and asia. >> with this is the ability to raise revenue. on thing that you are actually building revenue. what is the quality of that revenue stream? is it amazon-quality? is it ebay-quality? or is it a pie-in-the-sky? stewart: i'm not sure how to take the comparison, but one of the great things about fast business is that generally in slack in particular, the revenue
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is recurring. we have had about 15% cumulative point returns.s i'm not going to say it is the best in the industry, but it has got to be close. we are building on that in a pretty rapid pace. ♪
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♪ >> japan gets back to work, the yen maintaining losses. >> president trump prepares to address the united nations, having criticized what he called the bureaucracy and mismanagement. >> top trade negotiator attacks china. says it is aizer global threat to business. over the possible effects of luxury car sales. ofthis is the second hour
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"daybreak asia" at bloomberg's headquarters in new york. >> i am haidi lun in singapore. we are asking where is the fire given we are headed into an unprecedented fed meeting. is how equity investors are in the u.s. you have fresh record highs. maintaining its retweet will see a 4% decline, not a huge correction when it comes to central-bank normalization. >> remarkable, right, how the markets are taking it in stride? of fivewe have not had percent correction or more since that event in the u.k., so it has been that long we have seen this bull run.
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let's get to first word news with. paul: president trump makes his maiden address to the 90 nations assembly tuesday. -- the united nations assembly tuesday. bureaucracy and mismanagement have prevented the organization from achieving its potential. the present will need to build relationships as he takes on iran and north korea. the 90ecent years, nations has not reached its full potential because of bureaucracy and mismanagement, while the united nations regular budget has increased by 140%, and it's a staff has doubled since 2000, but we are not seeing the results in line with this investment. president spoke with xi jinping to step up the pressure
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on north korea. they agreed to enforce united nations section sanctions. china has been a critic, saying diplomacy is the only way forward. washington says beijing must do more to restrain its belligerent ally. tradeent trump's top negotiator described china as an unprecedented threat to world trade. robert lighthizer says the model creates a natural champions and distorts markets. he added the wto rules are not designed to deal with an economy of such strength as china's. turnedxit trauma has another page with the u.k. foreign secretary boris johnson hinting he may quit over policy differences with theresa may. he said she remains in charge of the government. the whole brexit debate is frustrating britain's partners, with ireland saying the u.k. is
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making a fundamental mistake. >> i think they need to move from their current position. i speak as a friend of the u.k. i spent much of my life in britain. abelieve britain is making huge mistake at the moment in terms of their current approach to the brexit negotiations. paul: global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am paul allen. >> thank you for that. meeting,d into the fed also considerable geopolitical risks, fresh comments from rex the militaryt option when it comes to north korea remains on the table, but money has come out of havens. let's get it over to sophie to risk on the asian
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session is. sophie: asian markets look to continue the upbeat mood. stocks continuing the rally. central banker center stage, but investors shrugging off the when itl end of an era comes to qe. japanese markets playing catch-up, the nikkei 225 denning 1.2%. keep an eye on the jgb market today as it comes back on line. take a look at the kospi. it could be set for a fourth day of gains. the yuan snapping a two day rise. currency markets aflutter from andents from mark carney bank of canada timothy lee. the sterling and the canadian loonie are reversing losses we saw overnight. , thees due out later today
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aussie gaining ground, up .2%. it has cap steady over the past -- kept steady over the past two months. this perhaps could prompt fresh moves higher after the recent consolidation. for aussie bears, they are watching iron ore markets. see has fed into what are has been doing over the past year. we have the yen on the front foot, gaining .1%, but still holding near a two month high. this strength could be coming through on expectations of shinzo abe dissolving parliament to pave the way for snap elections, but it is not just politics that could be driving the yen move. the dollar again tracking treasury yields and to your rates, the line in blue, back at levels seen in early july, that was when the dollar was closer to 1.14.
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this could mean another leg higher for the pair. the dollar yen could lose line, a above 61.8% retracement of the slide from the july high to the september low, but the pair could be underpinned at least until the fomc update. central bankers remain in the driver seat. >> sounds like it. a lot to watch this week. a closer look at the running of bowls on wall street, stocks rising to fresh records, risk on tone continues, major merger this monday pushing one stock 20% higher. su keenan has more on what happened today and what is ahead. >> what is amazing is the resilience in light of north korea, president trump in new york about to address the united nations, and if you look at the close, new records, green across the screen. historically stock so often andund with only banks
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technology affected. to tech stocks with major moves. they make the chips favored why bitcoin. we will get more on that in a minute. they are writing that big wave. optoelectronics is the number two shorted stocks. it is up to date. they make a special chip and there is concern that some of those shorts will get forced to buy back the stock, so they did some buying. let's go into our chart. the latest survey of the retail investor on how strong do they feel about the stock market going higher in the next year. the strongest they felt in years according to the latest survey. you can see how it tracks right there. what does this mean?
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it means when the little guy and your neighbor feels this market only goes higher, that is when it's time to put the caution flights on, and we are there. >> one indicator to look at. north of roman with a $7.8 billion merger with orbital atk. that also helped the market. >> there are thoughts there might be more. let's take a look at the chart, big military contract, buying orbital atk puts them in the space industry as well, now a nasa contractor. let's go into the intraday moves. it got a big bump as the deal was announced. up better than 20%. cf industries also rising. bloomberg,to the 9520. this is orbital atk's product
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revenue mix. white is the space industry. it has been growing. our flightllow and defense systems. that is this week spot now. the street seems to love the deal. foiled by that $50 level for the third time, falling back. also gold overnight retreating. what is the story when it comes to commodities? we are locked in a range. many veteran traders talk about $50 as a psychological wall. twice since may have we closed above $50. refiners coming back online, so there is a lot to deal with in the oil markets. gold dropped ahead of the fed has the safe haven play his out of the mix. not concernede
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about korea as they had been two weeks ago. .astly, yet another hurricane maria may follow irma. a lot of oil investors following that as well. there is bitcoin. we thought it was on the way ,own, but the bull run revived back from the chinese crackdown, regulations there, up 20% from friday. investors havee renewed confidence that regulation will not stop the rise. what a prize it has been. 30,000% in the last five years. this is 9483. we have taken the nasdaq which had that incredible internet rubble in the 1990's and have overlaid this white line which is that coin. it's rises much sharper. it recently came down on chinese deregulation. it has bounced back. bitcoin many say is a hard
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concept to grasp. j.p. morgan chase ceo jamie dimon has said this will come to an end. there are many trying hard to prove that is not the case, but this is a force to be reckoned with for now. back to you. >> cannot keep a bitcoin bull down. thank you for that. still ahead, president trumps negotiatorosegay calling china a threat to trade. more on that later. for a balance sheet unwinding, the possible repercussions for asian bond markets. this is bloomberg. ♪
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♪ >> i am betty liu in new york. >> i am haidi lun in singapore.
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off aseasury bonds sold investors grow cautious ahead of the two day meeting this week. let's get it over to kathleen hays in new york with more. sheet,kes in the balance what is not expected, what is expected? >> it is clear the fed is starting a two day meeting. we have seen a selloff in treasury the last week or so. more focused and there was. ,o fed rate hike expected however the odds of a hike in december have been creeping higher, now just over 50%. the odds rising there. what theonsistent with fed has been saying, one more rate hike in 2017. all the more reason for focus on the dot plot of where rates are heading. the fed updates this projections every quarter.
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that will happen this meeting as well. below target, but three force of the economists we theeyed said no change in inflation forecast and leaves open the question will the dot plots change. that one moresee rate hike view out there. the fed is announcing that date of the balance sheet unwind. they had said for the longest time it should start in the tober. we will get that tomorrow as well. the fed is saying this will be like watching paint dry. that is how boring this process will be. that remains to be seen. , and0 year yield was down now up, so quite a move in bonds. >> asian central banks also making waves in the wind markets.
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let's start with the pboc. >> for china to step up and have global leadership financially, economically that it wants to have, opening markets is so important. bloomberg news reporting that the pboc is in the process of drafting a package to do just that, open the banking sector to foreign central banks, control over joint ventures and control over chinese banks, lifting the 25% ownership ceiling, allowed for , for theclearing in foreign central banks to do bank clearing denominated in the chinese currency. they get integrated in the chinese financial system. remember that in june the head of the pboc had said to shield banks from competition would , so consistent
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with what we have been hearing from the chinese leadership. the party congress happens next month, so all this goes together. we also have the reserve bank of australia, minutes out an hour from now. policy on hold, but will they change their inflation forecast again? thecentral bank of philippines also meets, no change expected. bank indonesia expected to cut rates, so there is a lot going on among asian central banks that could hit asian bond markets. >> thank you so much. let's stay with asia and asian credit markets. they have been on a tear as an phon investors hunt for higher yield here it investors are not seeing the reward for the risk they are taking. joining us now is the head of
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the asia credit sector ithat exactly is that you are seeing that might change the game? have become used to easy money. that is how they have been performing for asian markets and global credit markets in general. it has become more localized, the local investor base has become predominant. it has been driving valuations tighter, so the risk at this point is that once the global central banks start to unwind and we hear numbers of $2
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trillion over the next year and a half. nothing of the scale has been tried before, so how the markets ready for the given where valuations are right now? we think the risk have been awarded is not justified and we suggest investors to participate in issuances where the risks are lower. stay with quality rather than chasing yield. >> the quality where? where do you find a quality? >> there are a couple of segments in the markets where we still lookds somewhat interesting. one of them is china investment grade. that is a sector that has been doing pretty well, driven by strong technicals. ashave the local in vectors part of that base. offshore investors have become
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more comfortable with that space as compared to what they used to be earlier. well,e that sector doing there are still pockets of opportunity in there. again, it is worth noting that there are names that have compressed a lot, so again, we do not want to chase yield and look at lower quality stuff. higher quality, benchmark names, , and china entities investment grade we like. has soldestment grade off because of geopolitical noise, but again, there are certain pockets that are interesting. to get your point on china. given that we are looking potentially at some large-scale financial market route warm going into the 19th congress. most people are saying that we will see after the congress
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financial reforms. is that positive, or are there more risks when it comes to chinese bonds? from a structural point of view, the reforms expected from a longer-term structural point of view would be positive for the economy, and that is what investors think as well. term,aid, in the near there is uncertainty around how those ons will be pushed out. are their chances of any miss the in terms of the? -- of that? it is not something everyone has a clear idea of right now. what is known is that after the 19th congress, the political landscape becomes stable and there is visibility in terms of
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how politics will pan out over the next five years. said, longer-term positive, but short-term, there might be volatility. us a bit to two give more of a few when it comes to some of these korean names. you are saying this is because of hedge positions import folios. china has been wider than korea, but now it is vice a versa. is it an appropriate assignment of risk? of positioning for investors, a lot of people have chosen to use korea has a way to protect of their portfolio. this is true for equity investors as well. instead of selling and getting out, they have chosen to hedge their risks. .hina has been on a rip it trades about 10% higher than korea.
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definitely a bid in terms of protecting the portfolio, but if you look at the past month has risk sentiment has flared up, we saw bonds selloff 10-15 basis points. benchmark gains in the china spacer tighter by 10-15 bits. korea has underperformed. in light of that, benchmark names, state-owned entities, those of the names that look interesting right now. >> we appreciate your insights. come. more to this is bloomberg. ♪
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♪ >> the quick check of the latest
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business flash headlines. about the major hack in march, five months before the data was disclosed. we are told the breach and fall the same intruders. equifax may be facing a criminal investigation into whether senior figures roque insider trader laws when they sold shares before disclosing the hack. cbs has raised its offer for 10 $25 million to $32 million. cochairman and gordon made a rival bid. they will vote later today. , mixed messages from washington.
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president wants china's help when it comes to north korea, robert lighthizer says beijing is posing a global threat when it comes to the global system. this is bloomberg. ♪
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across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. >> we are half an hour away from the straightrade, times index up over 1%. a nice lead from wall street overnight. i am haidi lun. >> i am betty liu. let's get to first word news. china has increased its holding of u.s. treasuries to the most in a year, an indication it is curbing capital flight. aijing's holdings rose for , anh straight month
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increase of 19 billion. japan owns 1.1 trillion, up from june. bloomberg has been told the pboc distracting reforms to give foreign investors greater access to china's financial services industry. a central bank meeting tuesday will discuss the proposals and review feedback. it may allow foreigners to control local sector joint ventures and raise the ceiling of ownership. a former hsbc currency trader is accused of the frothing a client. he tipped off fellow traders about a sterling trade. that benefited the bank at the expense of its client. hsbc is not a defendant, but has been under u.s. criminal investigation over currency trading.
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foxconn's move to wisconsin is closer with governor walker signing an incentive package into law that provides $3 billion if foxconn invest $10 billion. supporters say it can make wisconsin a hub for high-tech electronics. critics say foxconn has not offered guarantees in case workers are laid off. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am paul allen. let's get a look at how asian markets are shaping up. tokyo playing catch-up. we are still risk on ahead of the fed. sophie: risk on indeed. japanese stocks playing catch-up and building on the momentum, up 1.4%. equities higher, stocks in seoul, korea fluctuating. the yuan is on the back foot
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despite weakness in the u.s. dollar. other currencies on the front foot against the greenback. the pound and the canadian loonie continuing to rebound following their overnight losses, the aussie dollar gaining .2%. the yen the slightly stronger, but near the lowest in two months, feeding into the mood for japanese stocks. electionects of a snap are food for japanese equities. the nikkei 225 has gained an fivege of 3.6% over working days prior to the dissolution of parliament and 15 days after. a key factor for prices will be if this comes with the expectation of change. ,et's check in on the topix gaining 1.2%, led higher by financials. perhaps tracking what we are seeing in the treasury market
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supporting the rise of banking stocks today. i want to show the big movers on the topix. nintendo climbing to a high after credit suisse upgraded the stock's rating and raise sales targets for the switch console. nitori dropping after report that it will misguidance. telecom hasg reversed its earlier drop after the company announced it is slashing dividends. it is looking to finance its new wireless network. those of the early movers in asia this morning. >> thanks so much. china has increased its holdings of u.s. treasuries.
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our chief asia economics correspondent has the ground on this. what is happening and why are they increasing? thehis reflects stabilization we have seen in china's currency this year. authorities have managed to get a grip on capital outflows, giving them breathing room to rebuild their foreign exchange trillion they lost one as they tried to defend the currency, so now that they have a stronger currency, they can buy u.s. treasuries again. they are taking the opportunity to restock their international reserves. >> that makes sense. now they are the largest foreign holders of u.s. treasuries. but had lost that position, where are they in relation to other central banks?
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frothere is always a to an when it comes to u.s. treasuries. no material difference in treasury buying, but they do take advantage of the cheaper dollar to restock their holdings. they have intervened to support their currency since at least 2011, so there are different factors that work there. the broader backdrop is but thanks are restocking international reserves at a record pace to india and indonesia have record holdings. there is big demand in asia for u.s. treasuries. >> does this suggest beijing must be happy with what the currency has been doing at the moment and it is playing into the plan ahead of the party congress? would have to say from the stability point of view that the currency is where they want it. capital outflows have given them
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a window to rebuild. the currency that has become too strong. we are seeing signs of strengthening, so once we get past the congress, will authorities be tempted to let the currency weakened? aken? they will pull back on capital controls, and is it necessary as part of this financial reform package? would have to say on the one hand it is necessary. if you want to invite warned investors, they need to have certainty they can move money in and out of the country when they want to. there is no sense that china is in a hurry to lift capital controls to block money going out. they have put in restrictions on companies in terms of what
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assets they buy overseas, but ultimately it is how much confidencee they have to let i don't expect a widescale liberalization of capital accounts anytime soon. >> thank you for that. china has come under attack from president trump's top trade official. robert lighthizer launched into scathing criticism, saying china presents a global threat. >> this year scale of their coordinated efforts to develop their economy and subsidize and create national champions to force technology transfer and distort markets in china and throughout the world is a threat to the world trading system. that is unprecedented. >> he also said the wto is not equipped to deal with the threat from china. let's get to jodie snyder in
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hong kong for more background. where do these comments come from. interesting timing with washington wanting to lean on beijing to do more on north korea. >> the timing is interesting. asis his first major speech trade representative, so to come out swinging against china calling them an unprecedented threat to the world trading system is a significant statement. it is interesting because steve who had been an advisor on president trump staff, he was in this realm as well. there were some thinking that with steve bannon's departure that the u.s. would be less tough on china on these issues like intellectual property and currency, but now with the statement, it is quite clear that that is not the case. at least not for the moment. we know the president is set to .isit china
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how does this set up the potential for negotiations when he does get to asia? it seems there will be a lot of back-and-forth. >> the president is trying to be friendly to the chinese president. they had a dinner at the united nations a little while ago in which he praised the chinese president and said he was a great man and they would be able to get things done. he wants to support on north , but some of the thing he wants he is unlikely to get, such as an export oil ban, but they are doubling down on these comments about china, particularly regarding intellectual property, the wto, and the inability of the wto to rein in china, so it looks like it will set up some interesting discussions went president trump does go to china. president trump made his
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inaugural appearance at the united nations, those expecting a tiger saw a pussycat today with trump. he was quite genteel when it came to dealing with these diplomats, many of whom just wanted to come and have a good time. what did you make of that appearance? >> on the campaign trail and in ,is first months in office president trump quite critical of the united nations. he still makes comments, even coming to new york, he said we want to make the united nations was inot again, but he terms of his remarks and at this dinner with other diplomats and presidents of he was quite conciliatory, listening and praising people, so clearly he has recognized the utility of
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the united nations, particularly the security council. this is all about north korea. and need the united nations china to back them up. clearly that is what a lot of this is about. we will see how the speeches unfold tomorrow. he will give an important speech tomorrow, and we will see how this america first policy plays out even as he tries to be consolatory and work with others there. back-and-forth, but he is spending four days there come much longer than either predecessor, president obama and president bush. >> some are speculating that you never know with trump. he is hot and cold depending on which side of the bed he wakes on, so perhaps he is nice
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today, but tomorrow he will get tougher in front of the general assembly? >> that could be. onit could be a multipronged speech. tothe same time trying extend and all of ranch to some of these stations where he will , and also terms of the body itself. does not seem to be a fan of the united nations, at least extort play. -- at least historically. >> thanks. next, aston martin once clarity. an exclusive interview. this is bloomberg. ♪
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♪ >> i am haidi lun in singapore. >> i am betty liu in new york.
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petrochina has sold its u.s. to ato avoid future loans unit following imposition of sanctions. petrochina had been an intermediary for the $45 billion china have provided venezuela. it received jet fuel and gasoline blends stock as repayment to develop venezuela's oil reserves. a $30 million profit hit after flights. to compensatehave for hundred thousand passengers affected. has rekindled a
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relationship with india to give its lacking operations a boost. they formed a partnership for three years to cooperate on electric cars and distribution and was set to become the world's third biggest car market. aftera u-turn for ford previous deals put the india business under review. renaultn, hyundai, and are interested in supplying india with 10,000 electric cards as part of the effort to reduce emissions and curb imports. toeadline has been extended friday. the deal for electric vehicles would replace government cars operating in new delhi. latest toartin is the call for clarity from the u.k. government on how brexit might affect labor rules and auto sector terrorists. it may help the company decide about its possible ipo. andy palmer said the uncertainty
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around brexit may have a major impact on the auto industry. from areas go in place, the inevitable point issue will get a permanent depreciation. i agree with you that it is possible to see strengthening of tariffnd if those barriers don't come in, but we are trading 15% reduction in pound versus 10% tariff barriers, so net-net, this is something that does nike the awake at night. what keeps me awake at night is the non-tariff barriers, situations with cars held imports in germany and france because there is nothing you can do about that. there is no offset. you are at the mercy of customs. my biggest concern is non-tariff area. >> if japan does well in manufacturing
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sector, can theresa may learn from that and support one of britain's best exports? >> japan is an excellent example. it is an island. it trades with its neighbors, not part of the block. it has tariff carriers in and out, and yet it has remarkably powerful manufacturing industry. governmentause the has said industrialization is important. theresa may, if she follows her stated purpose of having an industrial strategy and puts that at the heart of her government, and in line with that favoring a slightly weaker pound, as a trading nation, industrial nation come the u.k. can do well. >> is europe less promising giving everything with brexit? >> in terms of consumer confidence, it is pretty much the same between the u.k. and europe. we both have the potential to or we get brexit wrong
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can find a way of making it right. and that was aston martin ceo andy palmer. one feature we would like to bring to your attention is our interactive tv function at tv . you can watch us live and catch up on previous interviews and do a deep dive into securities or bloomberg functions we talk about and become part of the usversation, send instant messages per this is for bloomberg subscribers only. check it out at tv . iscoming up, rolling stone up for sale, and there is a connection in singapore. we will look at that next. this is bloomberg. ♪
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♪ >> i am haidi lun in singapore. >> i am betty liu in new york. , managementines changes for goldman sachs in asia. kitchener will be the chairman and ceo of goldman sachs in asia ex japan. he was kitchener and is a membee firm's management committee and cochairs the asian pacific management committee and joined goldman sachs in 1992. .ome other changes as well
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changes inhad some singapore, goldman naming a ceo, so a shakeup when it comes to leadership here in asia. we will get more details as they become available. on the eve of its 50th anniversary, it's cofounder and publisher is not getting ready to celebrate. instead, he is looking to sell. given the declining state of print magazines, why would an investor want to buy rolling stone? did you use the word iconic. that is a word that gets thrown around, but this is an iconic for decades has been at the top of the list of music publications, certainly in the has built a
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journalism brand as well, publishing the works of top novelists, journalists, big, famous names from norman mailer, hunter s thompson, people like that. they have drawn at lot of attention to big issues on the onrnalism side while staying top of the pop culture and music industry. it is also a tarnished icon. it is hard to keep up in such a digitalth things being now and people spending more time on their smart phones than magazines. it is a transition, but you have thatink that a company they sold the investor state to last year are interested into tapping into a brand name that is well-established. the rolling stone brand appeal to young people who are the consumers advertisers want to get to? >> that is a difficult question
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to answer. the person who said it will work bandlab, a face facebook group for musicians. they see the value of this brand to appeal to people getting started in music. tapping that content and as a way to make something like that work, it is a tough call, but like neil young said, rock 'n roll will never die. indeed. great line. thank you. a quick programming note. the former u.k. prime minister tony blair joining daybreak america tomorrow morning. don't mrs. his conversation at 7:00 a.m. eastern, 7:00 p.m. tonight in hong kong. of pop references, let's get over to a man usually
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full of them. david, what are you watching? david: we have to rock on. when in doubt, go all out. we will continue the conversation around central banks. the question that is not being is that the fourth quarter might see the fed, boe, and bank of canada raise rates, and what that will do to the inflow story and asia-pacific. markets led to a lot of in the asia-pacific, india and philippine at a record high, highland at a 24 year high. i can go on and on. inflowss that do to the that has fueled equity markets? the other story is google
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joining in the mobile payments race in india. be talking about that story and whether or not there is room for multiple players in the market. rock on.m that, just >> you will be rocking on the next few hours. thank you with our bloomberg markets coverage. that is it from us. standby for bloomberg markets. this is bloomberg. ♪
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>> it is 9 a.m. in hong kong and p.m. in sydney to read the markets are on a roll. investors are fairly relaxed ahead of it -- i had of this week's fed meeting. china, this traders says that it is an unprecedented threat to global business. we are also looking forward to the united nations general assembly as president trump prepares to address them. criticizing what he sees as bureaucracy and mismanagement. this is bloomberg markets asia. ♪


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