President Trump, Us State Department, United States discussed on Bloomberg Daybreak: Asia
We need to do is make sure we have an agreed position we know will come on the support of the feature trading arrangements, and we can go to that with the the maze. People again, saying Brexit is the will of the British people top North Korean officials set to meet with US President Donald Trump and secretary of state Mike Pompeo in Washington later this week Bloomberg sources saying this could signal a second summit between the two countries. And that it could happen soon. Kim Yong shoal will be in Washington Friday, the official line from the US State Department is there are no meetings to announce November meetings were cancelled US Pentagon has confirmed the death of five military fighters by an explosion near a patrol and Syria. Islamic state has claimed responsibility now shortly after that announcement vice. President Mike Pence addressing an audience at the State Department. We are bringing our troops hall. The caliphate has crumbled, an ISIS has been defeated. But Trump ally Senator Lindsey Graham says this is dangerous my concern by the statements made by President Trump is it should set in motion enthusiasm by the enemy were fighting. You make people were trying to help wonder about us. He says the president needs to look long hard before he withdraws from Syria. And even though is trying to improve exchanges with North Korea. South Korean officials say they've stopped businessmen from bringing North Korean painting south that have been covered under the UN. Sanctions. It says even now permits are required in San Francisco. I'm Ed Baxter. This is Bloomberg. Bryan, sir. Edward oh. Thank you very much in Singapore. Olivier dossier head of applied research at Exuma Asia's our guest Olivia. I'm it's great to have you with us on the program. We have some concerns in the Mark. This morning, but likely already discounted by all the selling that we saw back in December. And so the markets are advancing. But my question to you is should we actually wait for the Chinese stimulus to kick in to buy China? Or should we get out in front and go do it? Now. Well, that's a good question. And it actually depends. You know, if you're an international investor or if you're a domestic local investor right now, China's still has a lot of work to do it has to rebalance if the economy it has to deal with the the huge amount of leverage in its in its financial system, and it has his trade war going on with the US. So what what it needs right now is really stability while it deals with some of these problems. So I think you're likely to get a stimulus for that. But that's only going to be designed to provide liquidity enough liquidity ahead of the Chinese New Year period to have financial stability, and you're not gonna be able to change the fundamentals that it has to deal with your kicking the can down the road on the leverage issue or the de leveraging issue, but you're not going to be able to change the fact that the global economy slowing that investors last quarter have kind of changed their mind about how strong the economy really is. And actually how weak. It could be and that's going to be a headwind that you can't prevent with just a stimulus package. Yes. Certainly does seem at least what happened yesterday kicking the can down the road. What about in terms of some of the other stimulus points? They've seen the couple of weeks ago that triple I caught Ben earlier this week as well vowing logic tax cuts today. Just more of a I guess papering, the overall issues are they gonna help longer Tim? I think again. Yeah, they they're designed to help the banking system says prevent any kind of run on the Bank so to speak. If there is a for some reason a negative risk event. That happens you have Chinese New Year coming in with a huge demand for cash at this time of year by by retailers. So they're going to the Bank anyway to to to to withdraw cash so banks really have a an equity shortage ran this time of year. So that's really designed to help with that. And what really the government there is trying to do is is they have to organize a soft landing of their economy. They have to prevent any kind of run on the Bank or financial crisis from the debt load that they have and they have to deal with the trade war. So they really need to have everything as calm as possible. Even that time, we're not used to focusing on cracks in the Chinese economy. But the auto sector really cracked last year in two thousand eighteen and if that happens in the housing sector this year. Well, look out below right? That's right. That's right. So they are all these potential cracks that are in the system. A lot of the loans that the banks have are related to property. A lot of the the the that that's out there is related to properties. Obviously, this is a crack that everybody's watching.