United States, New Zealand, Rajiv D'mello discussed on Bloomberg Daybreak: Asia


Solly in Singapore. We check the markets every 15 minutes here on Bloomberg. Daybreak, Asia was seeing a little bit of weakness in the early morning decision in Asia. The embassy Asia Pacific index down around 2/10 of 1% with healthcare and Industrials lagging, you sing flat Pick up in some of the real estate and consumer discretionary stocks. South Korea is out of action for a public holiday today, most of the positive Momentum is coming through in the New Zealand market. We've heard New Zealand is delaying its election by four weeks to deal with the Corona virus impact and that look down in Oakland. The incidents 50 up by 1.3% and Taiwan's TAIEX also doing quite well. But elsewhere. You're seeing weakness in some of the other. Bigger markets like the 6 200 down 3/4 of 1% and Japan's Nikkei 2 to 5 is down 3/4 of 1% at 23,120 points. Japan's economy, suffering a record contraction in the second quarter due to the state of emergency and lockdowns in now the major export markets, which really hammed consumer spending, production and exports on an annualized basis, second quarter GDP falling by 27.8% worse than the expected 26.9% decline. This is the worst in records going back to 1955 during the global financial crosses, GDP shrank. By around 18% will sustain China City one reference rate today at 6.9362 against the US dollar, which is pretty much where you're seeing the offshore currency trade at the moment, just slightly stronger against the greenback. Ozzy also stronger at 71 87 cents and having a look a commodities a little bit of a tick down in the gold price. $1934 an ounce. Brent crude is high and $42.23. Let's get it over to Ed Baxter in San Francisco for global news, Alright. Thank you very much. Julia in New Zealand Prime minister send our turn has delayed the election for four weeks to October 17 she says. After careful consultation with all party leaders, Taiwan has formally signed an agreement by 66 of the latest F 16 jets built by Lockheed Martin. Partial restoration of diplomatic ties between the U A e and Israel established. Israel drops annexation of West Bank plan House Speaker Nancy Pelosi is called the House back in the session to work on problems related to the postal Service and mail in voting. They want to get some legislation that would stop the commissioner from making major changes. In the service leading up to the election actually beyond into January for Inauguration Day Democratic virtual convention begins tomorrow in the US that runs through Thursday. Trump administration backs off the president's Birther conspiracy theory regarding Kamala Harris and Victoria has extended its state of emergency. As the death toll from Cova, 19 has surpassed 300 South Korean officials warning of potential virus flare up in a soul church in San Francisco. I met Baxter, This is limber Juliet. Thank you. And let's get back to Rajiv D'Mello, chair of the development, immediate mass from joining us from Singapore. We've been talking about some of your conviction calls, but the main focus here really remains. When do we see a vaccine? How do we see a vaccine roll out? With all of that in mind when it actually occurs. What sort of moves to we see here in bond yields and I notice is well that you're seeing a little bit of Ah, suppose you're in a negative position when it comes to the Dola. Bye, kids absolutely critical. We need to see some really good results coming out them. The candidate vaccines right now in the face three trials, which means large scale testing, so we could get some results by the end of the year. If things going real well, so that that's definitely a positive. Ofcourse, the rollout will be probably focused on healthcare workers. First broader role out will take longer into inter next year. But for markets that will definitely be positive effect. Now in terms of bond deals, Bondi of have very low And that's because central banks keeping policy very competitive on Dell's line back a lot of bonds as well. Yet we have seen the long and you'll start to creep up a bit. A CZ. The economic data is improved slightly on I mean, it's improving slightly on the year you're on your basis. But actually, what one sees is that on a month on month basis Come on, Reed is quite shop. But nobody is expecting a strong economy by all means, but it's definitely much less worse than it wasa Bania do have some room to grow up, and it's plenty supply companies have been assuring government issuing a lot on that'll put pressure on the longer end ofthe money of driving them slightly higher. On $2. We are negative on the dollar is a lot of things, which was put in a dollar over last couple of years, which unwinding somewhat examples such as the interest rate differentials. US field was significantly higher than yield in other countries. On that's coming down. Now that the Fed has cut rate is very competitive right now, where is the TV and the DOJ bank haven't really had any room to cut rates very much. They have me put in place using policy. But not to the extent that the U. S. Has the U. S. Has a couple of other worries such as elections, a cz well as changing the feds framework to keeping rates lower for even longer with increasing putting up a bit that scares us from the dollar. So, Rajiv, you're you're basically positive Here. It seems you've got on your conviction call list, even even some of the most troubled troubled areas like travel industry and hospitality and such If you do go with some pics in those areas. How long do you think you have to wait? When do we see some response from those stocks? Well for the photos really badly affected the ones you just mentioned. Travel industry, hotels, restaurants change there. We need to see some signs that the vaccine is coming on board. I think I'm positive because while we've seen infection, we'd go up..

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