China, Bloomberg, Asia discussed on Bloomberg Daybreak: Asia
And if you don't have tariffs on China, but if you cherish on China. The question is how does the doll ago, and then we're earnings being in that case last week, President Trump threatened to impose tariffs on just about all Chinese products. China's stepping up the pace of reform. It's twelve trillion dollars bond market. Bloomberg's Rishaad Salamat has more. Pure and simple. China is trying to attract more foreign investment over the past few weeks. Authorities of an as new rules to help the nation's bones gain, entry to major international indices, central bankers. Also, eased restrictions on credit rating companies and ABC's institutions would be exempt from paying taxes on interest gains, and they'll be allowed to conduct large traits through the bond trading links. With Hong Kong, the changes will make Chinese bonds will attractive to foreigners at a time when the country. Needs more capital capital is meant to stabilize the UN and fund corporate Boras have been squeezed agile this shadow banking system. In ogun. I'm Rishaad Salamat, Bloomberg daybreak Asia. A well known Hong Kong company is considering an IPO with a London listing. We get more from Bloomberg's Sophie Kamarudin. The firm is CK infrastructure holdings. Led by tycoon Victor Li the company owns energy and water utilities globally. We are told CK infrastructure is talking to investment banks and while discussions are ongoing. They may not lead to a deal seeking infrastructure has built a stable of British assets over the last decade from water and gas to rail transport. The company sibling CU Hutchinson has infrastructure assets in stray Ilya, Germany and Canada so become region. Bloomberg daybreak Asia, Tesla's battery, supplier, and Australia may be forced to delay. Production of got more from Bloomberg's Kathleen Hayes, the problem stems from a legal battle for an Australian mining lithium project. It's. Jointly owned by Australia's Kidman resources in his Chilean partner, s q AM they operate on land leased from the government of West Australia, but the lease is at risk since a court said Kidman should not be exempted from requirements to spend a minimum on site development to maintain lease rights. If production is delayed the market for lithium could be thrown into deficit in may tesla signed a three year supply contract for Kidman for future production. That means there's time for tesla to find another source, but lithium costs could be higher. Kathleen Hayes, Bloomberg daybreak Asia. Goldman Sachs says named the number two for David Solomon when he become CEO. John Waldron will be the next president and chief operating officer. He currently runs investment, banking Solomon and Waldron. I work together at Bear Stearns and rise cements dramatic shift in power away from the once dominant trading division at Goldman. Okay. We've got reports of a series of gas explosions just outside of Boston. Massachusetts panicked neighborhoods now evacuated for that. And other global news. Here's Bloomberg's Ramy Inocencio in New York, Paul. Thank you very much. That's right. Those explosions have caused fires across nearly forty homes in three communities just north of Boston. At least four people have been injured. Fire crews are now trying to put out those blazes. The cause wasn't immediately clear, but a local gas company had earlier said that it would be upgrading gaslines in neighborhoods across the state. We will of course, continue to keep you updated on this developing story over to another top story, we've been watching really all week in hurricane Florence now barrels towards the eastern seaboard. It's expected to make landfall in the next twenty four hours over the state of North Carolina and could bring more than three feet of rain. One Bank says it could be a one billion dollar hit as well. To the region's Agra. The culture sector. Meanwhile, the Philippines is bracing for the most powerful typhoon of the year. They're forecasters expect super typhoon to hit this Saturday with sustained winds of two hundred sixty five kilometers an hour. Thousands of people have already been ordered to head for shelters to US politics and former Trump campaign chair Paul Manafort has tentatively agreed to a plea deal with special counsel Robert Mueller. This is according to reports from ABC news that deal is expected to be announced in court this Friday it's unclear though whether Manafort has agreed to cooperate with prosecutors or is just conceding to a guilty. Plea also in US election. News ahead of those November midterms voters go to the primary polls today democrat hopes to retake the Senate along with the house have now brightened in Texas, West Virginia and Indiana and here in New York in the race for governor. Andrew Cuomo leads former sex in the city star an outspoken activist Cynthia. Nixon and finally the US has vowed severe sanctions on Russia for using that band nerve agent Nova chalk in the UK this would be a second more punishing round and includes banking sanctions as well as aid money. US officials say election meddling could bring even further penalties. Global news twenty four hours a day on air and take talk on Twitter, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries in New York, I'm Ramy Inocencio. This is Bloomberg Brian Ramey. Thanks very much. Our next guest on the show today is Shala chief economist for Asia, BBVA, Hong Kong shark. Nice to have you on the program. Let me outline what I see as the baseline you. Tell me if this is right. President Trump doesn't seem to want to do a deal with China. He said again today in a tweet, they're the one who is under pressure to do a deal. We're winning in terms of China. You could see that they would be willing to do a deal perhaps on trade and. P protection but not on made in China. Twenty twenty-five is that all correct? I think to China do have some room to make a concession to this made in China twenty twenty-five already downplayed this propaganda on this kind of a plan initially people think this policy paper made twenty twenty-five. But now, they try to tackle these one as some product of the think tank, so I think this now the official this official from China side by the problem is seems that President Trump. He's not in the mood to reach a very quickly with China before these meter in action. Do you think President Trump's assessment is accurate is China under more pressure to make a deal or is it quite the reverse? I think it's very difficult to say to some degree. He sat to the Chinese market is collapsing. Didn't perform good. This is true. But I think the problem is now with the midterm election pressure. President Trump his now eager to reach the swab. He find out if we talk about this a tree the world things he can get most potent from touch base. Well, it depends. What a lot of people are saying is that the president is trying to gauge this as we get closer to the elections. If he deems it as a negative, then he will put in process a deal. But if he believes that doing it deal would upset the base too much, then he would go the other direction. So when do you think, well, no, I think of now he's a very close to the election. I think welcome to know very soon maybe in October, and he will make a decision why they're the he's reading to make the deal with China before the midterm election or he walked to postpone this kind of the deal after the election. Away from politics for moment. How do you see valuations in Asia right now? I think now because of these trade world threat because of this interest hike. US I think the valuation relatively low especially in China. Now, they are almost close to the historical in terms of education. Right. So back to the elections. I guess what the president will probably do is as we get closer to the election. Are they winning? Does it look like the Republicans will hold the house? If that's the case, no real need to do it deal. If not then maybe what you do. Is you try to get a win? So you do a deal and say we win. Yeah. I think I agree. I grabbed that, but my point is after this midterm election either either recite that he's going to win. I think that they have the need to to make concessions to these big businesses. Okay. We'll continue in a few moments Shala chief economist for Asia BBVA and Doug krizner will bring us up to date in the market's rally of more than two hundred points. Again, it looks like a pretty solid day here in the Asia Pacific much like yesterday where we powered ahead. You're.