tv Bloomberg Markets Asia Bloomberg November 10, 2021 10:00pm-11:00pm EST
>> -- haslinda: it is inflation got a wild, cpi sitting the most in 30 years, reaching 6%, begging the question can't afford avoid not to do anything given the fact that we have had china's pci the most in six years, australia, new zealand, illustrating higher. the dollar maintaining games about .1 zero of 1%. take a look at where we are in other asset classes, msci index trading down, crude currently at 81.60.
ethereum, traders saying ethereum will be affording the crypto space, the blockchain could interrupt. rishaad: let's check in at the open, a little to the upside currently, above 32 point 86. we see dollar depreciation, that also means that the rent has snapped for a four day advance. across the board after inflationary, looking also at the fact that they kept interest rates on hold at record lows, widely expected, no surprise. india opening up its bond markets to retail investors as it seems to widen the base to find its government's massive borrowing program.
i inflation is the hallmark of the pandemic recovery. a fed president says it is too soon to say of further interest rates are required. >> inflation is high, it is eye-popping. this is a transitory period. it is directly related to covid, and this soon as we get to covid the better off we will be through the economy. haslinda: chinese markets bucking the trend coming up almost 1%. let's bring in our chief china markets correspondent. what is happening here. we know there are some gains in the property space. >> i went to put it in context, csi 300 was through the lowest point of the year yesterday and very close to bear market. this is not by any means and
exuberant market. it is a politically sensitive week with an event happening in beijing, expected to deliver a historical document. this is not the time for chinese markets to be taking. -- tanking. you see the yuan rising to the strongest point since 2015. developers, this is a state engineered rebound. we had three state media financial newspapers carrying in their front pages this morning credit to the property sector, surged in october. they provided no number so we do not know much about that. pboc releasing a monthly figure for mortgages, saying that also improved. pboc and state media teaming up
to reassure the market that the property downturn is not as severe as the market is pricing it. rishaad: they have not actually done much to stop contagion on the odds were market because there is no evidence of it yet. there is a lot they can do. >> fine tuning, the directions or trouble have not changed. this is about deleveraging the property sector, reducing that debt to gdp ratio, which rose to a record during the pandemic because of all of the stimulus unleashed into the financial system. most economists agree this is not a policy change fine-tuning the liquidity side of things to ensure we do not get systemic risk in the financial system, but as rebecca and our china
credits team will tell you we have seen evidence of some stress spreading to onshore markets. this is a much bigger market than the offer market. haidi: thank you very much -- rishaad: thank you very much. we are looking at ever grand again and it has made this bond payment and that sense the company up to avert default. tell us about it. >> everbright looks like it has made another 11th hour payment on their $148 million dollars coming due, the grace period coming due today. ever grand is buying time for restructuring. they have hired advisors and that is what investors continue to pricing -- price in. the next test will be much. haidi: -- be in march.
rishaad: there is a lot -- >> $2 million coming in march, but it looks like they probably can continue to service upcoming coupons in the meantime. creditors are also waiting for clarity on what kind of got they may see on the body. we have seen active trading on those notes. haslinda: rebecca, think you so much for that. let's get first will news for you, australian unemployment jumped in october signaling a delay in the labor market bounce . the jobless rate advanced to 5.2% above economists' forecast. employment dropped by 43,300 four of 50,000 increase.
rates will only rise in 2024. tesla ceo elon musk has sold stock in the company shortly after his twitter vote where people said keep should do so. he subsequently sold 934,000 shares to collect $1.1 billion. the filing says the shares were set aside to withhold litigation. china and the usa work together to combat global warming. the two nations agreed to boost their assets to cut emissions, including by attacking illegal deforestation. a group will meet in the first half of the year focusing on faster action this decade. >> the united states and china
have no shortage of differences, but on climate, cooperation is the only way to get this job done. this is not a discretionary thing, frankly. this is science, math, physics that dictate the road we have to travel. haslinda: secretary of state antony blinken said allied nations will protect if china uses force against taiwan. lincoln added many countries do not want disruption to the status quo. previous white house administrations have committed only to ensuring taiwan can defend itself. rishaad: still ahead, the impact of the global supply chain crunch on cross-border trade financing. we have an exclusive with a
>> there was a wide range of expectations for core cpi and headline cpi, and what we got was incredibly strong. >> inflation is going to be getting worse before it gets better. >> we think the inflation has gotten broader and broader, it probably continue for a while. thinking about trying to call that turn is extremely difficult. >> in the next three to six months we will see continued pressure. >> supply chain's and airports of the biggest places we are seeing cause pressure. >> we are in a perfect environment for sustained
inflation. >> if it is going to change the fed's course in terms of taper? no. >> powell is not ready to do something about it. haslinda: some views on price pressures in the u.s. economy. it does seem like the worst is yet to come. rishaad: absolutely, a gamut of different views. put three economists in the room, you get seven different views. where are you with this inflation debate? what would it look like in the months to come? >> core inflation's are way above expectations. if you look at the underlying data, it is suggesting that an increasing portion of the rise in prices is more consistent,
service price, why do have seen from last month is the pickup in terms of rent, particularly rent and medical care. those categories are the most resistant categories. we can have higher confidence to say inflation is more likely to be persistent. rishaad: you look at the other side of the equation, or inflation to be consistently height you need to have some kind of demand pull. look at real wages in the u.s., they are negative. >> that is a good point, there is always a short-term, midterm and longer-term perspective. as you said, the demand side of the equation and technology, which is always more deflationary and we worry about china's growth to slow down as well. haslinda: it does seem like the markets pricing in a rate hike
by the middle of next year. even if the fed moves tomorrow it will be behind the curve. >> the key question here is whether this will translate into higher inflation expectations. so far it is still within a historical reasonable rate. if that goes above that that will push the fed to a hike. haslinda: how do you invest? what do you go into and stay away from in this environment? >> we are still short durations. for our portfolio we would like to under u.s. durations and assets with less duration, for example, asian credit. haslinda: in china, when you take a look at the bond market, foreign investors have lead --
fleed. are you still concerned about the property space in the contagion effect? >> there are a lot of reasons for us to be concerned, but at the same time there are opportunities here. over the past month or so it is been slightly positive from the government trying to bottom out the tightening measures and the property space. also, we have seen the behaviors from property developers. ever grand securing its coupon payment, we have seen developers pay down the debt. rishaad: the thing is can they keep paying down these coupon payments? 2 billion in march or around that number here. >> we ask the question why their it now because they have so much to pay. rishaad: it is not like an
environment where they can raise money. >> it does buy them time to avoid something that could roll into a much messier process. rishaad: there is a feeling that the bottom of the pile on these dollar bonds, offshore bonds are likely to be the ones compensated last. >> not necessarily. historically offshore recovery has been actually higher than onshore. we are subordinated to onshore investors, but the offshore market serves a different purpose for those issuers. offshore is the only place they can come to. rishaad: what about the reverberations of that? longer-term the property market is to evolve, meet the demographic challenges that he faces as well. that has implications for debt laden local governments.
give us a sense of how this does actually have an endgame. >> this is the structural problem china has, at the government as the intention to get out of this high debt driven growth model and the property is core. they are trying to exchange space with time, time was space, so they are trying to buy time. we all know where they want to achieve the goal. the key is the path toward it, but you do not want to do it too aggressively. at the same time you do not want to encourage moral hazard at the same time. haslinda: what about the ripple effect? the fed warned it could spread to the u.s., and also what are the reports when the rest of asia? >> so far, it has been quite
limited, and the selloff in the dollar market is many in china property and from weaker property to stronger property. at least policy is putting up -- bottoming out. it will not translate into a spillover of other parts of asia, let alone other markets in the world. haslinda: thank you for your time. still to come, signaling straight stand index. keep it here with us. this is bloomberg. ♪
bloomberg markets of we have a look at the headlines, turn's cracked on tech industry taking a heavy toll on tencent. regulations weighing on its advertising gains, the company is working -- company's earnings rose 13%, that was a miss, the slowest taste of growth since it went public in 2004. tencent saying it is exploring new growth drivers including in international gains and the meta-verse. goldman sachs, $20 million for alternative assets in asia coming after a rebound against operations aggressively campaigning to raise outside funds. this is to overtake investment giants, it will double its -- jdm $2.5 million ipo was fully subscribed after a relatively slow start and analyst concerns over the company's profitability
. this was indy's biggest ever share a cell -- sell. the performance is a far cry [indiscernible] rivian soaring as much as 53% for its rating to be before giving up that game. it really top $100 billion putting it on par with gm. it is the sixth largest ever on the was exchange. -- on the u.s. exchange. >> we spent years and years putting this together and exciting to see a group of people with diverse backgrounds come together to create these products and standing there today as we rang the bell was quite emotional. it was powerful. haslinda: blue towel -- owl
capitalizing is one of the most disruptive players in capital markets. the cofounders explained their business model in an exclusive conversation with erik schatzker on bloomberg. >> we perhaps fancy ourselves like silicon valley, but really it is because we modeled our business after silicon valley, which is to say, disruptors, what did they do? they identified a large market that was not being fully in property -- and properly served and said i will provide a solution. 95% of our revenue comes from permanent capital vehicles, so we have attired different offering -- entirely different offering. we said there is a chance to be that disruptor, and then we
purposely built a business model that looked like a tech company. we did not start and say our base model is a bank, and how do we become a better bank. we started by saying cure is a necessary service that if we can do a great job delivering the product we can earn really attractive risk-adjusted returns , and this is the important point for our shareholders. we look a lot like a sas business and people do not map technology to wall street, but we have done this consciously. >> where businesses are set up to deliver to their end to gives her a certain set of services, but if you held our income statement against any other sas company you would be surprised how similar they are, i growth, recurring revenue, i margin -- high margin. haslinda: you can catch more of that interview on front row.
times were morning calls with juliette saly. juliet: all of the same vitamins everyone is talking about, you've got the power starting, there are three cracked on, you have got as well a slump in the housing sector and exposure to covert outbreaks. the company announcing they see 5% growth down from 5.5% according to muted growth. despite these pressures they have seen -- they say an aggressive monetary easing policy is not by this but they issue a more cautious approach to equity in 2022. rishaad: rishaad: we are getting to the end of the year when goldman comes out with its top grades. tell us about it. juliette: they are saying a phase of the world right of recovery, oldman is saying it will be less friendly for risk
assets, but they are saying it is too early to turn away from the equity cycle. they are saying equity valuations in the u.s. and india particularly. among the top ideas is shorting the aussie dollar versus the canadian dollar, and this is partly due to the bullish view on oil and downside risks to commodity prices we are seeing in play on china' economy. australia plans to raise interest rates were slowly. having most of the transitory inflation cake in 2021 the market may only have a limited portion left wheaton 2022. -- in 2022. rishaad: let's take it with chinese markets as we head off to the lunch break. they have altered green, turning tail. we have got a lot of news to the moment.
>> welcome back. we are told the biden administration is struggling to stay ahead of beijing's next step. >> let's get to the story with bloomberg's broussard born -- bruce einhorn. the lack of intel, what is behind it? >> one of the big problems is the u.s. had an intelligent network. china counterintelligence was able to crack that and round up.
the u.s. does not have a lot of intelligence resources on the ground in china. in addition to that, there is a shortage of mandarin speakers in the intelligence community. there is a lot of concern that the administration does not have the insight it needs into how xi jinping is thinking when it comes to something like taiwan. >> speaking of taiwan, lincoln did say that allies would take action if china attacked taiwan. what is the significance of his comments? >> in some ways, he is just repeating standard u.s. policy. president biden made some comments that went beyond what the standard -- what we saw from tony blinken is
a reiteration of u.s. policy. the u.s. is prepared to do that. >> beijing must have something to say about all of this. >> yes. tensions have been rising. within the past month, there have been multiple chinese air force for raise into the chinese airspace. that is getting a lot of tension into taiwan and elsewhere. there was a delegation of american lawmakers, republican senators, members of the house made it a trip to taiwan met with the defense secretary and
the defense minister there. that post did not make beijing happy. they will be a lot for president xi and president biden to discuss when they have their summit sometime soon. >> david rubenstein says investment in china needs to tread carefully as the government crackdown on various industries. we spoke with him about geopolitical issues today. >> the number one economic issue is when interest rates go up, inevitably they will. the biggest your political issue is the chinese u.s. relations.
as a result, i think people have to worry about investing in china or doing business with china. that is an issue. also, what the ramifications are if this gets worse. if something happens with taiwan, how will that affect the ship business? those are the two biggest issues. we will see what the impact will be on the stock market. >> last year when you spoke to us, you talked about the u.s. being the best place to invest but china was not too far behind on your list. is china still attractive place to be investing? >> china is attractive but not as attractive as it once was because the regulatory environment there has become much more complicated. more american companies are afraid to do business there.
as a result, it is not quite as welcoming as it seemed to be two years ago. china does have 1.4 billion people. it can do very well for people that invest there. but you have to know what you're doing and have people on the ground. >> this is something you can't do, ignore china. it is so huge. how should we view china and their place in the global community? >> title was the biggest economy in the world. china things it is regaining its rightful position. china was roughly 1% of the world gdp went richard nixon went there. it has grown dramatically and will probably continue to grow at the pace it is growing. china will not grow at the pace that it is growing.
as measured by purchase price parity, it already is. rishaad: looking at tesla shares, rebounding very sharply. all of this after tesla's elon musk's twitter pull over whether or not he should sell 10% of his stock. su keenan joins us. su: this has been very much front and center this week. he said he would abide by whatever the majority of these multimillion twitter followers said. 58% said go ahead. you can see a little bit of an uptick in tesla stock in the u.s. session. after hours, it was another bump
higher as this disclosure was made public. most of them had framed the possible sale as a tax related sale that had to do with the debate over how to tax the rich. he exercised just over 2 million options and subsequently sold 934 thousand shares. what is important to note is the option to buy shares at six dollars back in 2012. he was able to fill those and that was between 1100 and $1200. not a bad day's pay. these were solely to -- these sales do get some
attention in various companies. but really the kind of attention this one did. >> not surprising, least one other lien air has waited on the matter. >> a major hedge fund. he expressed a bit of shock in the way this whole thing went down. he said i had never thought we would let our ownership stakes be dictated by a poll on twitter. he says we live in a whole different world. holding the pull over the weekend, signaling there might be a 10% sale of his stake caused the biggest two-day decline in the stock in probably the last 14 months. a lot of it rebounding after hours. a continuation of that rebound.
back to you. >> thank you so much for that. let's look at some of the movements. we are tracking chinese tech. china posted the slowest pace in revenue growth since 2004. tencent now exploring new primers. especially in its national gains. we are also tracking chinese developers extending their rally. also, ever grand made payments on some dollar bond. >> let's have a look at the first word headlines. u.s. consumer prices raises -- raising. gaining more than 6% of the
year. -- on the year. leading economists predicting even bigger jumps in the coming months. this will put pressure on the fed. this could also quicken the pace. xi jinping is set to deliver a mandate to -- all of this as the party wraps up a four-day meeting. they have offered historical resolutions and they both use their work to dominate party politics. a wall street one amid -- ahead of major shortcuts. they are planning to reduce their staff in the coming years. wall street firms are increasingly relocated to lower
>> mumbai, mumbai. four minutes to the trading day. nifty futures opening down .3%. >> we are going to our next guest. hoping to transform global trade finance. looking to work with shipping lines and payment processes. they're hoping to help countries work on international finances. give us a sense of what you axley do. >> sure. take you for having me. we are into trade. our focus is to make global trade easier for smaller businesses around the world.
specifically the work with small and medium-sized businesses. the specific problem is when it comes to cross-border trade transactions, it will take 60 or 90 days to get paid. that is how we look to solve our platform. many will be able to come on board, get a credit line. they can use that toward increasing their cross-border trade transaction. that is why we exist. rishaad: that is a very interesting level of analysis. when you look at invoices and accounts receivable and the duration, how have you been seeing that whole market evolving as we have had these supply chains constrained?
>> sure. i would say the last 18 months have been interesting. starting with covid and supply chain instructions. we did see their worship and delays. there were buyers stocking up. they took the time to liquidate. i think coming out of covid, perhaps over the last 12 months or so, you actually saw a very strong tailwind behind certain noncyclical industries like monarchies, etc.. i would say more recently because of the shipping prices, there has been a change in patterns. we will give you an example.
as a result, this is impacting commodity traders. many of the buyers and reporters in the u.s. are looking for other best initiatives. domestically, it makes more sense. we are seeing this impacting everything. >> this is becoming a very hot space. you raised $135 million recently. what is the plan for that and expansion? >> as you rightly pointed out, it is a massive opportunity. we are one of the early ones in the space. it is india, mexico and the u.s..
we will continue dominating our presence in these markets and expanding in other regions. we also believe we have an opportunity to make things easy and accessible for small businesses. as we work with our customers, we see what customers have to do in order to manage trade transactions. it is not easy. it comes down to logistics management. i think we see an opportunity for us to make a life in small business. expanding in the current markets in the regions that we operate in. as well as helping create for small businesses. >> this is a hot market. valuations skyrocketing. any plans to ipo? >> not anytime soon.
i would say that i would think you. >> tell me about the challenges you are facing in the global supply chain. is there a differentiation between these small companies and is medium-sized companies as well? ultimately, what is your u.s. feed? >> small businesses are getting impacted much more because of the supply chain crisis and the shipping crisis. medium-sized companies, perhaps
supply chain's have been navigating as well. they are figuring out ways to run efficiently. small businesses are definitely much more impacted. what we are seeing in the market given that we are obviously operating across audible markets is that a lot of the asian u.s. trade is definitely getting impacted. this continues to become a market that is attractive for the u.s. imports. i think we have also seen some change where customers and buyers are looking at exploring the mastic sourcing. i think the point you're highlighting are the shortages and factory shutdowns. i think this is all a result of
shipping prices. hopefully things will stabilize. we see our small business customers getting a lot more impacted. >> do you think that india's smes can help india win more trade in china? >> i believe that. i think one of the challenges is credit. i think in general, the macro economic changes you have seen and macro economic factors -- i was just looking at your broadcast before this and you were talking about how china -- chinese and u.s. relations are not really improving.
i do believe that india is a market that can capitalize on that. they are already set up to capitalize on that. i think this is an opportunity for indian s&p's to capitalize on what is happening in the global trade. >> thank you for joining us. we have indian markets open about five been it's a go. look at the nifty, down about nearly .4%. 4.7% of the upside. they consolidated losses that widened there. it was not as bad as had been imagined here. that is a look at what happened
there. they were on the way up nearly 7.6%. we are also seeing banking alliance just a tad weaker. >> bloomberg is hosting the virtual india economic forum 2021 with speakers including the ceo of softbank advisors. you can watch that event on live go and you will find big diary entries today. as well as some of the event you may have missed earlier. plenty more ahead, this is bloomberg. ♪
ways unimaginably large. it will require multiple companies worth of products and adjusting the market in different form factors and segments. what we are looking at is our launch products. building additional production capacity for featured products, continuing the developing of the featured products. that is really key. we are striving to help drive and lead this massive transition. >> you're looking at potential sites for a plant in europe, potentially the u.k.. what is the update? >> we have not made any announcements around these facilities. there is a lot of speculation but these are really important decisions. for us, it comes down to recruiting a team to come in and
help drive and operate these facilities. as well as the access to supply chain, where suppliers are and what the logistics look like to bring components in. >> on the supply chain, usually the start of production more than once. you talked about a shortage of semiconductors. where are the pressure points? is it rising commodity costs? where are you seeing the chokepoints? >> i would tend the biggest challenge we have and i would say broadly across many industries is the health of the supply chain. if you think about building a vehicle like this, there are around 2000 parts that come in from suppliers. this is one of those situations where 99.5% is not good enough.
that creates a constraint for how fast we can wrap up. that is the world we are living in of managing what is a small number of suppliers but working really closely with partners and organizations to make sure they can keep up with our ram. we are fortunate to have some great people working on the ground. >> that was the riviera ceo -- revian ceo talking with us. rishaad: we will have a look at some of these benchmarks. half a percent of the upside. the yen weakening, that helps as exporters have put these stocks very much in focus.
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