tv Bloomberg Markets Asia Bloomberg September 24, 2018 10:00pm-11:00pm EDT
you have trade, politics once again weighing on stocks. last week's rally fading a bit. rishaad: breaking news. yvonne: the instagram cofounders have stepped down according to the "new york times," perhaps a challenger for mark zuckerberg. rishaad: facebook does own instagram and instagram is one of the profit drivers. that is something which american investors will be digesting later on. let's have a look at the news in asia. this is the nikkei 225 off the highs of the day even though it is still early, just 0.1%. composite, we are seeing this -- the losses that we had were much deeper at the
start of the session. it does seem to be recovering their. not moved at all since i last checked on it. what is moving on these markets in china? let's have a look at three companies. the biggest loser on the market at the moment is hna technology. this beleaguered group has had various companies it had listed put on the shelf. this is the latest one to come onto the market. there, down 10%. china grand automotive services up 10%. gainingey are very much investor attention. volumes are huge. this technology company is a small to mid cap. it is trading on something like a price-to-earnings ratio of 330 times. let's have a look at oil.
the price of the black stuff continuing to rise. that makes most of these companies more profitable depending on whether you are upstream or downstream. china, offshore engineering companies gaining ground. sinopec is feeling it at the moment, 0.4% lower. we are down overall. they are halting some of their purchases of u.s. crude, perhaps why we are seeing a reaction. the stock down 0.6%. let's get you caught up with the first word news. paul allen joining us from sydney. paul: supreme court nominee says kavanaugh says he is not perfect but denies sexual assault claims from two women. he's told fox news he had no contact with christine ford and did not assault another accuser, deborah ramirez.
he told the senate judiciary committee he would not withdraw his nomination based on smears. to let falseing accusations drive us out of this process. we are looking for a fair andess where i can be heard defend my integrity and my lifelong record of promoting liberty and equality for women, starting with the women who knew me when i was 14 years old. i'm not going anywhere. paul: president trump has been briefed on last week's korea summit as he expects a second meeting with kim jong-un soon. he met his south korean counterpart at the u.n. general assembly and was told kim wants to reach a deal. the president said a second meeting would probably be similar to the june summit in singapore. the argentinian president has told bloomberg there is zero
chance of a default given continuing support from the imf and others. he declined to give specifics, but set a new deal should be signed soon. the question of failure to pay debts has haunted argentina since it default it in 2001 following another imf loan. >> the level of support that we are receiving from the countries, especially from the united states, and the level of commitment of my government with , is aew exchange rate very competitive exchange rate. so we are balancing our foreign accounts. dimonjpmorgan boss jamie says it could take a generation before angry taxpayers are ready to forgive the big banks. he says washington did the right thing to avoid another great depression, but admits it could take 25 years for people to
accept that. he says president trump is correct to monitor china on trade, but tariffs are the wrong way to go. global news, 24 hours a day, on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. rishaad: let's get to the trade war following the imposition of new tariffs. china released a white paper laying out a plan to support the economy. yvonne: let's look at how that could impact markets. garfield reynolds joining us in hong kong. do you think china provided enough clarity? >> it is looking that way. there was an understandable drop at the open, which came online in shanghai and shenzhen. only 0.9% at the most. they are waiting also to discover what they get out of that.
investors look like they are not about to give up on last week's rally. kongps what we saw in hong was more of a locally driven issue. we were asking the question, will it be enough to sustain the rally we saw last week. we are down. why is it that hong kong seems to be pricing in bad news everywhere, including possibly a bad harvest of beans or something. this is what happens when liquidity gets withdrawn. that has happened for a long time. hong kong was pumping in the liquidity to stop the hong kong dollar from going past the 7.85 barrier. inevitably that turned around a bit slower than it perhaps should have when you consider that the pboc said it was time
for the yuan to stop falling. they are also both closely tied to the u.s. dollar. with that liquidity being drawn ,ut, all of those investors they became disturbed. away we went. then the rates side, all of that creates a very noisy picture for hong kong markets. yvonne: is it likely to get worse? rishaad: possibly. [laughter] if you think we are getting more calls now, rates are picking up, property sector could be under some pressure here, it seems like there's a lot of bad news. >> china, even after last week's
recovery, chinese markets are still a long way down from where they were. to expect trade certainty and a rebound before you know it, that is not going to happen. japan is a nice little guide. japan seems to be deciding that it is time to rally. there is some level of comfort, i think, with what japan is doing. are getting back up -- they've actually breached their downtrend. going to take longer for china and hong kong to get there, but i think valuations are down so low that you need some real strong, fresh bad news, and the trade wars are not fresh. rishaad: but elements within the
trade war could the fresh. i want to go back to what you were talking about about liquidity in hong kong. --en these huge ipo's [indiscernible] >> that is one of the factors. rishaad: can we support this ambitious program? >> that is going to be an enormous challenge. , with theo wonder pboc -- they said they are going to start selling bills here. that is a direct tool that can suck liquidity out of the market. that adds to the uncertainty regarding those ipo's. , dos going to get back to we get a sustainable recovery needis going to keep the
for no sudden movements from the central authorities? then you might be able to manage. yvonne: great to have you in hong kong. garfield reynolds. subscribers, you can get more on china at live go. this is where we are hearing from china's state council information office. they are briefing reporters on that white paper. speakers there, trade representatives. door forar that the trade talks is always open, but negotiations must be held in an environment of mutual respect. rishaad: still ahead, the trade war is disrupting -- [indiscernible] property investors consider all this. yvonne: up next, we consider oil's $100 horizon. theaad: we also join
yvonne: let's check on the oil price here. holding on to the gains we saw in the beginning of the week at $81 for brent crude. we broke above that in the last couple days. seems like members are less inclined to give into president trump's demand for lower oil prices. wti also up -- just about flat right now, but $72 a barrel right now. rishaad: with have a look at what the cartels have been trying to do. little support for those sanctions on iran. they also sidestepped the president's demand for cheaper oil. those sanctions on iranian oil are due in november.
it is notntaining going to happen. the united states is not capable of bringing our oil exports to zero. this is an empty promise and it is a threat that is empty of credibility. perhaps we will sustain certain pressures, but certainly the united states will not reach its objective. bp,ne: we also heard from saying the price momentum in crude may not last, with the market not factoring in the impact of the trade war. people have been seeing the brunt of the impact. the markets are choosing not to demandn that potential being much weaker than we thought in 2019. rishaad: let's get the outlook
for oil. economistned by chief erik. thank you for joining us. how would you characterize what is going on in the oil market currently? >> it is a market characterized by a lot of volatility, which is not surprising given that there's the relatively normal storage levels and very little production capacity. there's a lot of worry about the impact of sanctions for iran. then you get these types of reactions that we've seen over the week. it is a normal market volatility in a market that is well-balanced. yvonne: you have the shrinkage of iranian supply. you have bp warning of a trade war dampening demand. what should the market be focused on the most? term,hink over the longer
to the extent that the trade war becomes more serious, it would have a dampening effect on demand. in addition you should expect some new supplies to come in. that would also dampen the impact. on the other hand, you have the sanctions. we have a market where there's not a lot of production capacity. we have some supply disruptions. if they vary, then you get increased tightening of the market. is verywhy the market sketchy and volatile at the moment. there's a lot of uncertainty. the price might come further up over the next months, but the balance should week in a bit 2020 is ourand forecasts turn out to the right. where the price might move is impossible to judge with any
kind of detail. yvonne: we continue to hear calls of $100 oil. that is still another 25% jump for brent. it brings the question of how likely that is. wheree a chart that shows oil prices are going to be. most of them say that prices are falling after the third quarter. are we likely to hit 100 or do you think we are stuck in this range for some time? exclude $100. you cannot exclude that it will pass through the fresh hold. you cannot exclude that it will go back down to $60 either. most likely we will see a further tightening of the market and a price increase over the next months. then we probably will see a pullback as well. i will not exclude $100, but i
will also not exclude that we can go further down. it depends on how the market develops. demand, whichof is a slow-moving variable, then you have the fast-moving variables like sanctions and supply disruption. there are a lot of these variables that are difficult to gauge, both the relationship between key players and also the situation in some of the key supplier countries, libya, venezuela, or other countries where there's a lot of unrest. rishaad: what about the supply demand dynamic overall? generally, the underlying economic growth is good. there's underlying demand growth pastil, which probably
$100 million -- 100 million barrels per day. the short-term demand growth is good. thaty is building up to and we've taken storage down to normal levels. now there's a race between supply and demand if you like. going forward we should see some supply increases, but there are bottlenecks in the united states which will delay some growth. yes? rishaad: i just want to get your thoughts on shale. shale is acting as a cap on the price. it is not giving that ceiling as it were this time around. what is happening there is that the main growth area of shale is inland texas, and , but due to field
some infrastructure constraints, it will take time before significant increases in supply will hit the global markets on the coastline. even though the underlying incentive is to wrap up production by introducing more, it will take a while. we need more pipeline capacity. reasons whyof the the markets are tightening now without a significant rapid increase in that part of the shale picture. but if the current prices stay, you should expect increases in the oil supply next year. but it might take a while before we see that infrastructure expansion. how influential is president trump now in controlling the oil price? say that hardly
anybody controls the oil price at the moment. policiest of economic in the united states is mainly through the impact on trade and the protectionist type of measures, which leads to an expectation of future lower demand. and also the policies that affect the supply from different countries, in particular the iranian sanctions, though are the most important impact. same thing with opec and their friends, if you like, their cooperative partners. they have significant ability to affect the markets, but not over a long time. signals are interpreted very seriously now. nobody can control the price exactly.
that is what the market is doing. rishaad: thank you very much indeed. -- [indiscernible] joining us there from singapore with his thoughts on oil. breaking news coming through from the ministry of commerce. yvonne: a little more color from that white paper released yesterday. they are saying that talks should be based on mutual respect. also saying that china won't sacrifice development rights for trade talks. this is according to the ministry of commerce. they are not going to reverse course. they are trying to provide a little more clarity here. they are not really going to backtrack too much when it comes to deleveraging. aboutd: and also talking it is quite normal to have trade disputes. not normal when it is ratcheted
here's the latest business flash. jd.com slumped more than 7% as reuters published details on the night before the ceo and founder was arrested on suspicion of rape. one message from his alleged victim reads, i was not willing. he denies all the allegations and his lawyers told bloomberg he was arrested over an allegation they believe is false. rishaad: -- will step down of chairman of malaysia's largest bank. the 52-year-old brother of the ousted prime minister says it is time to leave.
the strategic plan comes to completion. they will now activate a succession plan. ocbc says plans to boost services will improve the profitability of its banking operations. the bank is looking to digitalized its consumer services and its customer base among small and medium-size companies. it wants to trim its cost to income ratio to about 40% from 43% during the first half of this year. rishaad: let's have a look at what is going on as we head towards the lunch break in japan. comp down.shanghai just taking a look at the nikkei as we head towards the lunch break. just on the way up there. 23,902. probably down to the latest
rishaad: 10:29 in hong kong. i'm paul allen with the first word headlines. china says the door for trade talks is always open but negotiations require mutual respect. beijing responded to the latest tariffs with duties on $60 billion of u.s. products and also released an eight-point white pape they're emphasized the need to uphold national dignity and protect core interests. china says it can't meet for talks unless president trump backs away from the threat of further tariffs. iran says the weekend opec plus meeting in algiers proves there is little support for president trump and u.s. sanctions. the cartel and its allies side stepped the president's demand for cheaper oil saying they would react to market needs.
sanctions are due on iranian oil in november as the white house seeks to cut output and exports to zero. tehran says that won't happen. e.u. foreign policy chief says the remaining nations backing the iran nuclear deal despite new u.s. sanctions will agree on what she calls operational steps to safeguard the accord. speaking in new york she said iran had good reason to stay in the deal providing tehran continued to see economic benefits. russia, china, france, germany, and the u.k. still support the 2015 agreement. reports from new york say the co-founders of instagram will have quit and will leave in the coming weeks. "the times" says they have resigned adding to the pressure on parent facebook. the departure raises questions about instagram's future at the time when critics blamed facebook for being careless with user data. global news 24 hours a day on air and at tick tock on twitter
powered by more than 2400 journalists in more than 120 countries. this is bloomberg. >> paul, thank you. checking on the markets here today it has been a mixed picture but china's markets in focus as they come back from the holiday here. it seems like we'll be fluctuating around losses and bigger losses right now with the shanghai composite down about a third of 1% so off some of the lows of the session already. jakarta stocks also muted losses heer as well down by 15 points but nifty futures the one to watch. all the concerns about shadow banking and debt crisis, perhaps looks like we are in for a pretty --. >> exactly. people looking ahead to the u.s. open as well looking at the futures contracts here. this is presenting a flat picture. you aren't getting any direction from that either and the fed right now at the moment gearing up. >> pick up across the board.
>> we are looking forward to the long awaited meeting and also e.c.b.'s president who may steal the monetary policy spotlight. >> let's bring in the bloomberg economics and policy editor. he told the european parliament -- a big pickup in inflation. why? >> it's interesting isn't it? when the head of one of the three biggest and most powerful entral banks in the world says he sees vigorous inflation pickup everybody listens. the bond market sells off. let's listen to what draghi chose to say earlier today. >> measures to underline inflation remain generally muted but have been increasing from earlier laws as domestic price pressures are strengthening and broadening. underline -- underlying inflation is expected to increase further over the coming months as the tightening labor market is pushing up wage growth. kathleen: fair enough
tightening labor market pushing up wages is exactly what jay powell and his colleagues in the federal reserve expect in the united states. it is interesting because to a certain extent some conflict with the e.c.b. view on inflation through 2020. 1.7% year over year is not exactly the huge pickup you might think when just below 2% is the target. with that in mind jump into bloomberg with me. what you're seeing there is the turquoise line. that is the number to watch. that is inflation that is just at 2%. now, you also have the super core. that takes out food, energy, and other prices you can see. that's along the bottom starting to push down. then the middle line is services inflation. that, also, has seemed to have peaked and gone a bit lower. some are wondering where m draghi sees the big acceleration. maybe partly because he also says he sees a broad based economic expansion.
fair enough g.d.p. is growing ok. take a look at this chart. you can see g.d.p. on a quarterly basis has come down. 0.4% to the last two quarters year over year only about 0.6% and the p.m.i., the white line going down still above 50. purchasing managers, manufacturing. still signaling growth. you can see a bit of a down trend. i think that's why people are wondering, what's draghi up to here? could it be that he is seeing broader measures in inflation besides wages, besides other indications, growth getting strong enough? sure. that is clearly what he sees. that's what he says. but people are saying maybe he is also trying to make sure everyone is ready. everyone is set up for an interest rate hike by the end of summer next year. toward the end of 2019. unless trade war. he did raise the red flag on rising protectionism and is concerned it could take a big hit out of economic growth in the eurozone. i think that is one thing at this point that could maybe change draghi's tune just a bit the next time we hear from him.
for now he seems pretty upbeat, optimistic, and on track for the more tightening next year. >> what about the fed here? what do we expect jay powell to say? echoing draghi on trade and how much will they say about trade when they wrap up the two-day meeting? kathleen: i think he'll be asked a lot of questions, rish, at the press conference after the meeting. what reporter isn't going to want to know how are you going to stay on a rate hiking path if trade intensifies, if this war intensifies, if it creates volatility in markets and maybe slows down the economy as well. interesting though. with the september rate hike that is expected, another 25 basis points, the fed funds rate will move above the u.s. inflation rate, the target for the first time since 2008. back into bloomberg with me, look at this chart and you can see the two key measures of inflation. the headline number, the turquoise line, yes, above 2%. the core measure on the p.c.e. deflator right at 2% right where the fed wants to see it.
there is also an interesting angle. even though inflation is barely 2% our bloomberg economics team is going to argue we'll see a hawkish chill from the feds becauseth graph shows us more hawks right now than doves. jay powell, looking at him now, at his last press conference when he spoke to reporters. he is considered a neutral player here. there are four neutral fed officials who are voters five hawks three doves. that is why bloomberg economics think they could get a more hawkish tilt out of their policy statement, their forecast for the economy maybe than we're looking for. pimco writing in a blog today that the fed, they're concerned in fact the fed will take this hawkish turn because they're ignoring the lags in monetary policy and looking short term, looking at the neutral rate. where is it? does it need to go higher rather than looking down the road and seeing what the rate hikes could do which again gets us back to the trade war and this question over what the fed will say about this through jay powell's press conference
because they have had concerns but so far the fed's view has been whatever we lose on a trade war the tax cuts, fiscal stimulus in 2018 are going to more than make up for that and of course the strength in the stock market underscores this. so a big question but mostly people are still thinking we'll get a rate hike in september and signals for another rate hike in december. yvonne: all right, kathleen. thank you. bloomberg global economics and policy editor. just want to go through some lines coming through from this presser in beijing right now the oomberg subscribers, chinese economy they're saying can resist risks from trade disputes. they say the economy is reliant according to the vice chairman and they're saying domestic consumption in the economy has "huge potential." they're still saying there is a potential, you know, the trade risk seems to be quite manageable right now.
they've been talking about how the knockdown effects could be .7% in the future but prety -- rishaad: it is very confidence ilya tri. always open for trade talks. a lot of people are talking at the same time and sending out he same sort of message. coming up we'll have a look at the less obvious casualties of the trade war talking about the real estate investor. this is bloomberg.
rishaad: our coverage of real estate investing. how important is the whole presale system to the chinese developer? >> rish, it is a very important channel of funding for developers in china. some would say the most important funding channel that they've got. what is it? it allows developers when they're building a block of apartments to sell those to buyers before they're actually completed and get the full amount in the door which they can use to build other projects or develop other plots of land. this is very different to systems in place in say the s. for example where money can be given up front and held in escrow and developers can't use it. also in japan you have a system where buyers of apartments don't actually pay until the building is completed and handed over. so this has allowed developers
to grow very quickly. you look at something like country gardens, they've come from behind to be one of china's biggest developers by a sales growth now because of the presale system. it takes country garden just 9.6 months to break even on land banks that it has got. that gives you the extent of how this allows developers in china to really ramp up their businesses. yvonne: we saw the stock fall heavily yesterday in hong kong in reaction to that. why are authorities specifically seeking to scrap the system? >> according to the document seen by bloomberg news authorities want to fuel excessive property investment and they're saying this is a system that has attracted incompetent operators into the industry and china, real estate in china counts for about 20% according to some estimates of
g.d.p. is a very big driver of the economy and you have developers in china you mentioned already extremely highly leveraged facing a wall of maturity in the bond market of about $23 billion in the first quarter 2019. this is ones they've got to find the funds to pay the interest on and we're already seeing equity ratios well above a hundred percent in some cases so definitely this is a push by he government to curb lefpblg. rishaad: the thing here is what impact could this all otentially have on developers? reporter: well, for a start they could be forced to find new funding avenues and this is coming at a time when it is re difficult to cap the bond market and the dollar dip is
becoming more expensive to service. also could limit the sort of projects in the pipelines these developers are able to complete in a certain time frame. it certainly might slow that down and that of course is going to impact their financial system. you mentioned we saw country gardens falling heavily yesterday in hong kong. developer shares are also falling this morning. down for example 3.3%. the heaviest in about three weeks for that developer and one of china's largest. you can certainly see the impact is already being felt even though the proposals are ust in the early stages. rishaad: thanks, leading our coverage of asia real estate and investing from singapore. henry, what do you make of this potential move here? enry: i think based on our iran we do forecast in
by 2021, $100 billion of u.s. debt is set to mature for el estate developers and we see so many opportunities coming from that space. he number one, we talk about npl's from chinese developers, potentially creating opportunities for those high risk, high returns of investors. and secondly, on the china market, an emerging trend, is multi family models. i think we'll see more and more institutional investors from overseas. developing the support for a bill to remodel. it is going to have interesting opportunities going forward. yvonne: you wrote a report recently about the trade risks
involved. how do you see this actually impacting flows in and out of the property market and the coverage you look at in asia? >> it's a very interesting topic. we know that the trade war has been escalated over the past few weeks, 50% of chinese goods exported to the u.s. in particular has been impacted. in the commercial real estate there are a few interesting movements recently. number one we all know that industrial sectors are the most exposed ones. they'll hit the most. low cost manufacturing is moving out of china and the trade conflict is a catalyst for them to move out. southeast asia is the common ground. secondly, more recently we noticed that the electronic companies in china are considering moving their production lines out of china simply to reduce the cost. when we consider real estate investment opportunities, in china in china ,
i think that they could be still there. the trading volume is still very, very solid. and we cannot even know the facts of foreign investors and now they are deferring their investment decisions to go into china not because of fundamentals but because of the trading -- because the cost has been increased on going to china. rishaad: it is not just china. there are implications for the wider region, are there not? >> yes. it is for the wider region for now. there are winners and losers. i think in the shorter term china is going to saufer minor hit but in the medium to longer term some countries, some regions will be benefited. i think one of the beneficial regions is the southeast asia. there are trade conflicts and low cost of manufacturing in southeast asia could be a catalyst to speed up integration for asia and the
economies. thinking about vietnam, cambodia, they tend to be lower cost, labor intensive manufacturing hubs but we also cannot ignore the fact malaysia, thailand, they are playing an important, key role in the global stages. singapore is a world class financial hub. i do think about southeast asia in our region is going to be benefited from that conflict. yvonne: that is the commercial side. hat about residential? the flows of money from the u.s. into china and other parts of the world due see that stalling in any way? >> i think no. i think we have to talk about the chinese -- in two different ways. people have been talking about individuals buying and globally they will continue. if you look at institutional capital out of china it's actually slowing down. i think insurance, developers, they are not going to buy a
position overseas like the one we've seen over the past few years. on the other hand we do notice the chinese have been very active at acquiring assets overseas. they are not buying residentials. they are moving away from the offices and hotels. they are buying logistic facilities because they realize how important it is to control the global supply chain. rishaad: overall we get many prophets of gloom and doom. we've been here before suggesting we'll see big drops for hong kong property markets, chinese property markets as well talking on the residential side. it never really comes to pass. is there anything that you would say which says it different this time? yvonne: they're raising prime rates at banks perhaps? >> yes. i think that risk is pretty much on the interest rate hike. i think the faster they expect interest rates on the fed, potentially it's going to slow down for the residential prices
particularly in hong kong. i think we've been thinking about hong kong prices going to correct for such a long time but it hasn't corrected with the interest rate hike potentially going to slowing down, the pricing incremental issues in hong kong. yvonne: thank you, henry chin there head of research for asia pacific at c.b.r.e. joining from us singapore. for breaking news wherever you are bloomberg and tictoc, twitter have blocked tictoc by bloomberg. rishaad: over social media we offer live video coverage, updated top news reports, verified by bloomberg. do jump on twitter and follow tictoc by bloomberg. ♪
yvonne: time for a battle of the charts. we're going to pit you against each other today. for viewers ask us the charts on the bloomberg by running the function feature at the bottom of your screen. let's kick things off. andrea? >> hi. what i have for you today is particularly relevant because it is, given the yufe -- euphoria we've seen in u.s. equity markets. this is a chart that shows expected price swings in stocks on the s&p 500 are trading at a
premium to actual stock moves. this is significant because it suggests investors are becoming more cautious going forward as the cycles emerge. divergence is happening as investors rotate in and out of sectors but what is really interesting is that this low correlation is happening as we also have low volatility in markets. so what you actually have is a combination of benign volatility as well as u.s. stocks that are not moving in sync with each other, which could be interpreted as a sign f complacency. some investors caution this is really too much of a fair thing if things really start going fair shape. rishaad: so a look at the offering now from you? well, my chart is divided into two parts. the first part actually shows a
very important situation that yained has lost its rank of being the best asian stock market this year to new zealand. new zealand has got nothing to get there. it's just the declines have been in the indian markets thanks to what started with the financial shares. investors have become a lot more cautious and are unwinding .ositions the shadow bank issues are adding to these concerns. now the second part of the chart shows volatility is increasing in indian markets which shows there might be more declines. rishaad: the jury will be out on that but the jury has to eet today.
i'm sorry about that. very, very good both ways. thank you very much indeed. let's just remember and remind you that bloomberg users can have a look at those charts. have a look at recent ones we've been featuring and save them for future reference as well. yvonne: more timely i think to what we've been seeing in asian markets of course. rishaad: it was a case, just has gone the other way. andrea's chart was very good in the sense that they're building up. yvonne: all right. let's move on. talk a little more about instagram. we broke the headlines earlier in the show from the "new york times" talking about how the founders of instagram are leaving facebook. we are learning a little bit more about this now. our sources telling us that perhaps there were some growing tensions between the founders of the company of instagram with the facebook c.e.o. mark zuckerberg over the direction
of the product according to some sources. rishaad: yes. been two guys and they've in the company since instagram was bought by facebook in 2012. facebook sort of -- has had all the issues. instagram, a lot of people use instagram so it's had the cushioning effect. yvonne: certainly that is where the growth is coming from is instagram. a big question to the future of that platform right now. more ahead on "bloomberg markets" and of course "countdown to india." this is bloomberg. ♪
emily: i'm emily chang in san francisco. this is "bloomberg technology. the u.s. and china hunker down for a long trade war. as the latest round of tariffs hit, bringing more tech into the firing line. plus, siriusxm buying pandora, giving the satellite radio company a leg up in the ompetition with spotify. and a deal to bring more business to the iphone and ipad.