China, United States, FED discussed on Biz 1190 Overnight featuring Bloomberg Radio
Equity is available now from Bloomberg press. US prosecutors said to be pursuing a criminal case against Hawaii for allegedly stealing trade secrets from its American business partners. Now, the news comes with. He'll always CFO still is on bail and Vancouver and awaiting possible extradition on China. Correspondent Tom MacKenzie joins us from Beijing. Tom. Good morning. What do we know about this investigation? Opens up another front in the US campaign against wa away which on some measures is China's largest company this investigation involves looking at allegations of the theft of trade secrets by the way, that is the allegation theft of trade secrets against companies or from US companies like t mobile, and it's linked to some civil cases including one they think back to two thousand seventeen where the jury found that while I was indeed liable for the theft of robotic technology from t mobile, and what our sources have told Bloomberg is that the investigation is quite advanced. And there is an indictment quite likely on the way soon, and again, it is another area of pressure that will be put on Tibet on way. Which of course is the world's second-largest by make an a major producer of telecoms equipment, and it's theft. It's alleged theft of IP, of course, is central to these talks in these discussions between the US and China when it comes to the trade friction. Is that where the wider fall is? I mean that they Hawas said of the legendary owner there. Yes, he's saying look, I'm a sesame seed in this trade dispute, but that is where the wider the wider full that is isn't it. It is because the company is seen widely at particularly in the US is being symbolic of China's trade or technology ambitions, the fact that it poses a national security risk in the eyes of many certainly in the US and many of his allies now and the way that it's got to where it is. And many would say that that is being through the theft of intellectual property as you say the company strongly denies this. We had the founder CFO or CEO coming out junk face saying that he does not work with youth. Authorities in Beijing and would not allow them to spy on other companies using or countries using this technology they've strongly denied this. But certainly the US campaign to pressure its allies to block wa equipment from its own telecom networks that continues you had the case of Poland arresting hallway employees on allegations of spying. And of course, you still have the CFO of the company who is held on bail in Canada and awaits potentially an extradition case. And so that continues, and of course, the Canadians would also say that the Chinese have taken retire. Allegation against their own nationals who have been traveling to China. You've got two gentlemen, who are being held in secret detention somewhere in Beijing who continue to be held there. We don't know how long they will be detained for they don't have access to lawyers. They get to see officials. Maybe once a month that continues the Canadian retaliation. You also have the case of a Canadian here who saw a drug sentencing drug trafficking sentence increased to the death penalty. Again, Justin Trudeau saying that was an example of Chinese retaliation. So that those cases of sent chills for the business community here, and certainly deteriorated the ties between Canada and China for the moment. China's trying to keep focus on the talks is taking a swipe at Canada. But in terms of how they worked through these issues, and that is a question that remains to be seen. And certainly while we ever get to the stage where it's blocked from US technology. Like, you said see that becomes a major issue for both sides. Tom. Thank you very much in the very latest on night from China to the other side of that trae, which is the United States of American trade was Rafael Albertoni is the head of debt capital markets for Gulf Investment corporation and very clearly lane. The theater of trade wars, the nuances my question to you to bring it into your world is we've got the theater of trade wars. But I would put a team that the fed is listening much more than once we last spoke to one another and they are much more globally aware. Is that a fair interpretation? It is absolutely. A fair interpretation. We had the change in the awarding on the fed in the past few weeks. They understood that an aggressive monetary policy could new radio the economic recovery. Not only in USA, by Inger rested. Their word is to defend this focus on the US should not take care of the rest of the world. Where we live in a word, and the effect of the trade war is already very clear in terms of a in inflation and a reduction investments or at the US. Now, the consequence on all this rhetoric Astra George flipping a whole variety of voices on the fed in its position consequences on the cub. We've got the five ten thirties in the GT live. We will put that up as a reference point conversation with Stephen major the other day said look, I'm going for Kirsty, and the reason being he believes that these next rate hikes if at all are in the long grass we're back at levels that we haven't seen. Since last February is there more propensity in your view to continue the steep. And if so to what level I think, the Cubbies already prising expectation in terms of fed dykes. We are advocating for another. I probably in the second quarter on next year. But we wouldn't be surprised to see. No, I I think the focus for defended. This year is going to be more dinner monetization process off their balance sheet, rather than how many I we are going to have at the moment, we keep a neutral duration position because they're Elliot's already open. We spent a little bit steepening of the curve, but very modest from current level by we are ready to go along with Eurasian as soon as we would have more dovish. Assessment that from the fed the normalization process. I I'm always I love a fast and furious trade. And so there was a chart that caught my eyes you came out to the Saturn is on volatility, and this is about the mov index the Bank of America Merrill, Lynch mob index down for eight days in a row. We haven't seen sweet died on the mall Vendex dot since probably at the back end of last year now that volt drop has a lot of people writing straddles and strangles. In other words, the fed won't move. The great deal ball won't move. Great deal in the bond market is that a smart trade at taking him premium? Fifty million dollars has been taken in premium is that a smart trade for you or got risk? This year is going to be a year of very strong volatility for a number of reasons. And therefore if you are able to play the volatility, I think is gonna this to your portfolio, obviously is going to be very difficult, and you you need to do right to pick the right timing. And this is true for volatility, but also for all other asset classes now we are seeing enjoying and nice railing on risky assets. I think it has reason to continue by not gonna be as three to line is going to be very volatile and the timing. This year is going to be crucial. Okay. That set time is running against this. It's going to be volatile twenty nine hundred. Thank you very much for being my guest this morning that is Rafael about Tony had of capital markets for Gulf Investment corporation being on the show. Not. I'm.