17 Burst results for "Rashad Salami"
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Everybody. Good morning from Hong Kong. I'm Brian Curtis, along with Rashad salami and Doug prisoners with us in New York looking at markets Doug. Hey Brian, a little bit of a defensiveness in the trade here in the U.S. today ahead of that critical report on retail inflation will get the CPI data tomorrow morning 8 30 a.m. Wall Street time. At the same time, I think we have to include this impasse in the debt saga. That seemed to weigh a bit on sentiment. Ahead of the meeting with President Biden, speaker McCarthy rejected the idea of a short term debt limit extension, that really didn't change after the meeting and we're going to take a closer look at that momentarily here on daybreak, Asia. In terms of equity market action, we had the Dow slipping about two tenths of 1% in the broader market the S&P was down around a half of 1% in the NASDAQ comp down about 6 tenths of 1%. Also a cloud given the fact that there was some very weak eco data overnight from China, a steep drop in imports last month, and that seemed to call into question the overall recovery on the mainland, although curiously, tonight after the bell here in the U.S., the numbers from when resorts as it relates to Macau pretty impressive hotel occupancy at a level of 90.9%, a year ago that number was 49.8%, get this, the street was only looking for an occupancy rate of around 53%, so much, much above forecast. In terms of yields today across the curve we drifted higher not by much at the short end of the two year was up about two basis points, 4.02% and a ten year at three 51, so we're going to get reaction in the Tokyo session in less than two hours from now any developments that play out relative to the debt ceiling discussions and debate may get reflected in price action in U.S. sovereign debt. Now we had a little bit of strength here in the dollar interestingly with the Bloomberg dollar spot index up about a tenth of 1%. The yen pretty stable here, one 35 20 against the greenback. We'll take another look at Marcus and roughly 15 minutes, Brian. And we do have a little after the bill action with when not doing all that much at the moment up about three quarters of 1%. Also coming up later, we have Dana Peterson with us. Chief economist at the conference board will be taking a closer look at the markets, the debt ceiling, and everything else. But now it's time for a global news
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Here in Hong Kong and in Singapore, I'm Rashad salami. And I'm Brian Curtis here in Hong Kong alongside rich. We do have a few red numbers on the screen. S&P E minis now are down about a tenth of a percent, but generally speaking, the equity futures for Asia are higher. The prisoner will bring us up to date on what to expect in the markets today. But first, we look at some of the top stories. Right, we're going to stern Ernie. Sorry, I stern warning coming from the Biden administration about doing business with companies helping Russia avoid western sanctions. Our very own Tom busby has more. In an effort to step up the enforcement of economic sanctions, the departments of commerce justice and treasury warning companies to be on the lookout for what they're calling trans, shipment points where goods are legally purchased and sent on to Russia or Belarus, those locations include China, Hong Kong, Macau, and closer to Russia, Armenia, turkey, and Uzbekistan. Now businesses who don't comply could be held responsible if companies they deal with turn out to be fronts for Russia's war effort and face tough regulatory action administrative enforcement even a criminal investigation. Tom busby, Bloomberg, daybreak, Asia. Well, another day, another high profile default in struggling commercial real estate. That story from Bloomberg's Denise Pellegrini. Blackstone is just defaulted on a more than half $1 billion bond backed by nearly half empty office space and stores. Sources say black son had hoped to sell the property in Finland, but bond holders refused. This loan was originated by Citigroup and Morgan Stanley and city as we've been reporting just announced today. It's laying off staff, including in mortgage underwriting, strategic defaults on office space in the U.S. are also intensifying, including by giants pimco in Brookfield, and more than $90 billion in U.S. office mortgages are maturing this year. Just as the fed gears up to keep tightening the noose at many workers, continue to work from home instead of going into the office. Denise Pellegrini and Bloomberg day break Asia. All right, let's have a look at what was happening at Macy's, the shares soaring after the retailer reported fourth quarter earnings that exceeded expectations. In fact, after hours, it's got a gain of about 11% right now. The results are boosted by sales growth at its higher end Bloomingdale's and blue mercury brands, Macy's also said that inventories were down 3% in the fourth quarter from the prior a year. The CEO Jeff gannett gave a positive outlook for the company earlier. What we saw in the fourth quarter, that's continuing. And we're anticipating that those macro conditions are going to play out through the balance of 2023. And we're seeing it in savings rates. We're seeing in credit balances. We're seeing it in just inflation and how it's playing in services and in goods. Looking ahead to jeannette said that the retailer will be focused on areas of growth that include prior private brands off more expansion and luxury goods Macy's shares as we said up around about 11%. Slightly better jobless numbers in Japan that just broke across the Bloomberg terminal here this morning and looking at core CPI up 3.3% on year. The market was looking at 3.2%. Core consumer prices, that's the number 3.3%. All right, it's time now for global news
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"We approaching 6 30 in the evening on the Atlantic seaboard of the United States, just approaching 7 30 in the morning right here in Hong Kong and Singapore and Rashad salami. And I'm Doug Krishna at the Bloomberg interactive broker studio in New York. It's just about 8 30 in the morning in Tokyo, but it's a market holiday, the emperor's birthday today, so no trading either in Japanese equities, or in U.S. sovereign debt. We had yields in the U.S. session moving a bit lower right across the curve in the case of the two and the ten we were down. Three basis points. So we've got a two year treasury at four 69, a ten year at three 91, a mixed day for stocks, and we'll take a closer look at that in about ten minutes from now. We begin with an update on a few of the sours top business stories. Rashad. Intel, it scores the biggest maker of computer processors. It slashes its dividend payment to the lowest level in 16 years. It was a 66% cut. The company is saying it will help them preserve cash and focus on a turnaround plan and in its earnings report last month until forecasted one of the worst quarters in its history and it can be attributed to a slowdown in sales of PCs. We heard earlier from Bloomberg's amandeep Singh. What has happened over the course of the last ten years is computing has moved beyond PCs. First it was smartphones. Now we are talking about cloud more and more AI, chat GPT, and what it entails is a different type of chip than Intel was making. And so to compound the problems Intel really didn't keep pace with the manufacturing side of the equation. Indeed, and the in addition to job cuts Intel cider is reducing its budget for spending on new plants and equipment this year, the covering applying to spend about 30% of revenue and hopes to save as much as a $10 billion by the end of 2025. And as long as we're talking, semiconductors raise after the bell and video with a very bullish outlook, it kind of suggests that the company's push into artificial intelligence processors is helping to offset weak demand for those PC chips we have Nvidia shares right now up by more than 8 and a half percent in late New York trading. We go next to Facebook parent meta platforms. The company seems to be preparing for a fresh round of job cuts. We have more from Bloomberg's and Kate's. According to The Washington Post, medes targeting divisions across the company and around the world as part of reorganizing and downsizing efforts that could affect thousands of workers, meta laid off 13% of its staff in November and CEO Mark Zuckerberg has called 2023 the year of efficiency as he vowed to cut middle managers and underperforming projects. Other big tech companies, including alphabet Microsoft and Amazon, have also handed out pink slips to employees. In Washington and Kate's Bloomberg daybreak Asia. All right, it is now what 31 minutes past the top of the hour
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Commitment to Ukraine nearly a year after Russia invaded its neighbor. Florida governor Ron DeSantis said Biden's focus should be on America's issues. I and many Americans are thinking to ourselves, okay, he's very concerned about those borders halfway around the world. He's not done anything to secure our own border here at home. We've had millions and millions of people pour in. Desantis also said that he'll make a decision on a potential 2024 presidential run after his state's legislative session ends in May. Funeral costs for the victims of the mass shooting at Michigan state university will be covered by the school officials say they'll use money donated to the Spartan fund in the wake of the shooting to help families pay for funeral and hospital expenses. I'm Brian shook. And I Brian Curtis in Hong Kong. Let's get you caught up on this hour to stop business stories and the markets. The British bank HSBC says it's considering a 21 cent per share of special dividend, as well as speeding up buybacks. The bank's quarterly pre-tax profit of $6.83 billion beat estimates. HSBC chairman Mark Tucker has flagged numerous risks in the outlook, although China's reopening is set to be a bright spot. The world's biggest miner, BHP, has slashed its dividend. The cut came as higher costs and softer commodity prices drove a decline in half year profit. Profit from continuing operations dropped 32%. Bloomberg's Rashad salami has more. BHP will pay out in 90 cents per share. That's down from last year's record of $1 50. This comes as BHP commodities like iron ore and copper slumped during the second half of the year. This drove a decline in BHP's half year profit. Prices were impacted by China's economic slowdown and hawkish policy from central banks. The world's mining giants have also been hurt by cost inflation on energy labor and other inputs, even so BHP and Mike Henry says he's positive about demand looking ahead. Henry sings the expecting strengthening activity in China to be a major driver. We believe that as some of the policies play out in the property sector, initially that's going to mean more housing completions, which will be positive for copper, but that will then shift into housing new starts, which will be positive for steel. So quality dependent. But overall, we expect that the uptick in growth in China, strong growth in India, is going to bode well for the commodities that we produce. JD.com has dropped as much as 8.4% in Hong Kong to lead losses among hang seng tech index members. This after the South China morning post reported that the company is planning a one and a half $1 billion subsidy campaign next month. That's to compete with budget shopping app pin d'oeuvres. A subsidy campaign, according to analysts, could be an acknowledgment on JD.com's part that is facing market share pressures from pinned Waldorf. In other news, some of China's top scientists have outlined a plan to circumvent U.S. sanctions on semiconductors. Let's get the story from Bloomberg's annabelle drillers. Senior academics, Luo junwei and Lee Shen Shen, say Beijing should gather paintings that govern the next generation of chip making. The patents would run from noble materials to new techniques. The scientists contributed their comments to the Chinese Academy of Sciences. The article offers a rare glimpse into how Beijing approaches hostilities from the U.S. over semiconductors. It also hints at how Beijing might react in the future. So far, Chinese officials have refrained from discussing countermeasures to U.S. actions, reportedly even in closed door meetings. Let's check the markets in the Asia Pacific. We mentioned BHP. It is trading flat now while the SX 200 has traded off about two tenths of 1%. Global news powered by more than 2700 journalists and analysts in more than 120 countries. In Hong Kong, I'm Brian Curtis. This is Bloomberg. Bloomberg radio on demand and in your podcast feed. On the latest edition of the tape podcast, a conversation with Omar Aguilar at Schwab asset management. What do you do at Schwab asset management about the sort of newer or alternative asset classes that retail investors are just starting to dip their toes into? I mean, how do you deal with these things at Schwab? These happens all the time, and we have had significant amount of interest. And this happens in many cases. You may recall, not too long ago, the discussion about meme stocks and what people can use that information to invest and how they can use several information is the good news is that we attract a lot of investors to start being interested in investing. I think our challenge and our goal and mission continues to be to educate clients on how to think about the long-term. And what to think about the way to invest from the basic level of what are the fundamentals of what you try to achieve a financially and investment wise for each one of your goals. Areas like, for example, digital assets, any type of related information that is more supply and demand that there is little in terms of fundamental, there is little in terms of history. They tend to just be an option for clients to start getting their interest in investing, but not as a Sally to form the core of their long-term strategy. We tend to just continue to educate clients to say, well, you know, the basic asset classes, the basic areas of investing for the long run, as of today, still consist on the basic cash fixed income equities. And yes, there will be other alternatives that are based on fundamentals that could
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Hong Kong. I'm Brian Curtis. And I'm Michelle Gemma in Singapore, while another day another basket of U.S. data that's producing some mixed feelings and markets will get to all that and more. First, let's take a look at how traders are seeing things out here in Asia back to you, Brian. Well, it's both good news and bad news, Michelle, as you very well know, retail sales in January jumping the most in almost two years. We'll get details on that, but the number 3% was hotter than expected. And of course that brings fears of an even more hawkish fed. On the other hand, good news sometimes is good news, particularly if you're worried about recession or a slowing economy, not being able to handle those higher interest rates. So some investors embraced it. We did see equities finish higher. The S&P 500 gained about three tenths of a percent triple that for the NASDAQ up 9 tenths of percent, the Dow Jones Industrial Average with a gain of about one tenth of 1%, and it is feeding through into the Asia Pacific, a couple of markets just opening up Taiwan, Singapore, in both places. We are seeing gains of about a half percent inequities. Then he came up about 6 tenths of 1% with the gain of 170 points and the ASX 200 has advanced three quarters of 1%. Not to forget so the cost be trading the most higher up 1.1%. We did have some data this morning, Japan's trade deficit surging to a record in January. Growth in exports sharply narrowed though, exports seemed pretty hot up 3.5%. That was down from 11 and a half percent in the previous month, and imports were up 17.8% from a year ago the trade gap jumping to $26.1 billion. And we had Australian unemployment unexpectedly jumping to 3.7% yields dropping the Aussie dollar now down four tenths of a percent against the greenback, 68.74 U.S. cents. The Bloomberg dollar spot is up a tenth of 1%, yield on the ten year, 3.80%, Michel. Yep, well, let's take a look at some of the stories leading the news. This one in intriguing one, the Dutch chip equipment maker ASML says a former China based employee has stolen data related to its chip technology, more from Bloomberg's Rashad salami. The data was taken from a so called product life cycle management program known as team center ASML uses the program to store detailed information about its machines. This includes the lithography systems which are critical to producing some of the world's most advanced chips, the alleged theft is the second such breach that ASML has linked to China, and it comes as the U.S. pressures other nations, including the Netherlands to keep China's chip making ability from advancing. The latest news may only add to the growing geopolitical tensions between western capitals and Beijing. I'm Rashad salami Bloomberg day break Asia. We had Tesla gaining 2.4% in the latest session the stock has been on a tear in the last month alone up 66%. Tesla will halt production at its Shanghai factory until the end of February. The EV maker is upgrading its facility so it can start rolling out a revamped version of the model three sedan. The revamp comes as Tesla faces increased competition from competitors BYD and neo in the Chinese market. Upgrades have occurred at facility lines in stages over the past two months. The section of the Shanghai factory currently being worked on makes model threes and model Y sport utility vehicles. Tesla expects deliveries of the new model three sedan to begin later this year. Elsewhere in tech, we got strong earnings after the closing bell from Cisco, the maker of computer networking machines, Bloomberg's Tom busby has more. Shares of Cisco rising upwards of 8% in extended trading after the maker of computer networking gear top second quarter earnings at 88 cents a share on revenues of $13.5 billion up 7% from a year ago. It also raised its forecast for the current quarter, saying sales of tech infrastructure could jump as much as 13% double a previous estimate. Thanks to a backlog of orders that built up during the pandemic, Tom busby, Bloomberg, daybreak, Asia. And Cisco shares actually traded up about 3% when it was all said and done in late trading. Joining us in a few moments to trend, managing director and co head of global macro strategy at manual life, investment. But now it's time for global news
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Is 7 30 in the evening on the eastern seaboard of the United States and Rashad salami And I'm Brian Kurdish, we're seeing some modest gains in the two equity markets up and running here, the nikkei advancing about a half a percent, similar gains in Australia. No trading today in Seoul, they've already started their new year's holiday. And so we won't get any feedback from there. We'll get you some of the other markets as they open, hanging index futures at the moment up 1.2% Rashad. Okay, we're having a look at the van eck now. It's a liquidating two Russia exchange traded funds, nearly a year into Vladimir Putin's invasion of Ukraine details now come courtesy of Bloomberg's Charlie pellet. The issuer is closing the vanek Russia ETF the ticker RSX and the vanek Russia small cap ETF, ticker RSX J, trading in the funds and others like them had ceased following Russia's brutal invasion of its neighbor, which started in February. The U.S. and its European allies, among others, institute had harsh sanctions against Russia in the wake of the war. Separately, Franklin templeton said last week that the firm was liquidating its Franklin FTSE, Russia, ETF. In New York, Charlie pellett Bloomberg daybreak Asia. TSMC has kicked off mass production of next generation chips in southern Taiwan. The new chips are expected to control the next lineup of cutting edge devices from iPhones to Internet servers to supercomputers. In the meantime, concern is growing over a global reliance on Taiwan for big technology. That's because the island is seeing threats from China which claims sovereignty over Taiwan is also some fears of recession and uncertainty over the impact of U.S. sanctions on China's economy. Taiwan, president Tsai ing Wen said earlier this week that moves by TSMC to build factories overseas. Well, it's a sign of Taiwan's power abroad rather than any threat to local industry. And on Thursday, TSM QI chairman Mark Liu expressed confidence in the longer term outlook for chip demand. China vying to expand fiscal spending, quote, appropriately. Saying also that they will optimize policy tools, including fiscal deficit and special debts. In other words, they're broadening their stimulus program. Now that all came from a statement from China's ministry of finance's website, the statement did point to minutes from a nationwide virtual meeting of finance officials chaired by minister Li kun. It is seen as part of its efforts to support the nation's key strategic development China's broad fiscal deficit hit an all time high in the first three quarters of this year. That of course is COVID outbreaks in a housing market slump, continue to erode government income earlier. We saw former finance minister Liu Ji Wei, saying that the country may need to set a budget deficit target at above 3% of GDP next year in order to improve economic performance. Well, South Korea's inflation came in slightly less than expected in the month of December. However, still elevated. It signals more policy tightening by the Central Bank in the new year, the data, the consumer prices index advanced 5% from a year earlier, economists had expected it to strengthen 5.1%. The bank of Korea will meet next month for the first decision of the year another quarter point high key is expected to bring the benchmark rate to three and a half percent. Okay, it's time not to check in with global news
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"In the morning right here in Hong Kong and in Singapore, 7 30 in the evening on the Atlantic seaboard of the United States. I'm Rashad salami. And I'm Brian Curtis, trading is underway in Sydney, Tokyo and Seoul, and it's mostly a down day here so far the nikkei trading down about two thirds of a percent and big losses in Seoul with the Cosby pushing 2% losses. The mainland will start issuing new passports to its citizens and also visas for traveling to Hong Kong. So that could spruce up the Hong Kong market today. Right now we've got an hour to go before we get to the Hong Kong market and we'll keep you up to date on what to expect once we saw or see futures start to trade. Now it's time for some of the top stories of the hour. Yeah, we look at the Kremlin as it bans exports of Russian crude oil and refined products to foreign buyers that adhere to a price cap that this is seen as a response to that oil price cap, the G 7 put in place earlier this month. The group of 7 industrialized nations imposing a $60 per barrel cap on Russian oil that cap was put forward in an effort to target Moscow's ability to finance its war in Ukraine. Russia's new ban and restrictions are expected to begin in February. Tesla saw its steepest one day drop since April shares of the company down 11% at $109 and ten cents in marks the EV makers longest losing streak since 2018. We get more from Bloomberg's essay day. Temporary halt in the Shanghai production plans combining with a number of news that we had last week that Tesla was offering this actually pretty hefty and pretty rare discount on its cars in the U.S. before the yearend. All of this taken together is really fueling concerns that demand is our maybe faltering for EVs. Tesla is down roundabout 70% from its peak this year and there are a number of factors at play here related distractions for the company and also Elon Musk's distractions at Twitter. The EV makers market valuation has shrunk to about $345 billion. That's now below Walmart and video and JPMorgan. All right, well, let's have a look at the Apple shares as they close their lowest levels since June of 2021, partly due to the ongoing sell off in big tech names as can also because of concerns about concerns growing over iPhone supply in this key holiday period production stopping at an iPhone plant in China, which has caused a short fall in supply, JPMorgan, saying it's expecting results in apple's December quarter to be quote muted relative to the consensus expectations, meanwhile, Apple doesn't remain a modest out before but for 2022, lagging the tech heavy gauge over the past month, however, stock down 1.4% in its third straight negative session. Japanese prime minister of fumio kishida is replacing a fourth minister in two months since taking office, who construction minister Kenya akiba had resigned on Tuesday after allegations of inappropriate use of political funds. He told reporters that he had not done anything unlawful. Akiba stressed that it's important that reconstruction is not impeded and the discussion in the parliamentary session next year goes smoothly. He'll be replaced by Hiro michi watanabe. Keisha has seen his own approval rating dropped to its lowest level since he took office. It follows a series of cabinet scandals and criticism over a proposed tax hike to help fund a historic overhaul of the country's security capabilities. Last week, Japan unveiled a record initial budget for the upcoming fiscal year of around a $114.4 trillion. That's 860 billion U.S. dollars and it's up from a 107.6 trillion in the current year. Okay, well, it is now what, 32 minutes past the top of
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Live from the Bloomberg new economy forum in Singapore. Coming up this hour. U.S. equities rise as fresh economic data adds evidence that inflation may have peaked. Apple prepares to get U.S. made chips in a pivot away from Asian supply. And Sam bankman freed faces a possible trip to the U.S. to answer for his role in the collapse of the crypto firm FTX. Poland is deciding whether to ask NATO to talk about retaliation to reported Russian missile strikes inside its borders, Russia denies an attack and calls it direct provocation. I'm at Baxter with global news. We'll disgruntled Christian Ronaldo play another minute from Manchester United. On the schwarzman I'll have that story more coming up in Bloomberg sports. That's all straight ahead on Bloomberg daybreak Asia on Bloomberg 11 three O New York. Bloomberg 99 one Washington D.C., Bloomberg one O 6 one Boston, Bloomberg 9 60 San Francisco, Syria's exam one 19 and around the world on Bloomberg radio dot com and via the Bloomberg business app. Daybreak Asia, the Wednesday edition ten in the morning in Sydney. We've got trading in the Australian equity market. If you're joining from the apac region this morning, good morning. I'm Doug Krishna at the Bloomberg interactive broker studio in New York. And I'm Rashad salami in Hong Kong, Bloomberg, Asia presented by IBKR investment advisers, switch to interactive brokers for your for low cost global trading and turnkey custody solutions no ticket charges and new conflicts of your interest at IBKR dot com slash RIA. Well, we just got the opening Sydney. I started talking pretty much unchanged. Let's get more his Doug prisoner. Hey, rich, a lot of volatility in the market stateside. It was injected when AP reported midday that Russian missiles fired at Ukraine and they ended up landing in Poland two people were killed will take a closer look at that momentarily when we checked global news with our Ed Baxter. Away from geopolitics, the focus for markets very much on an expected shift in the fed's thinking on a rate hikes. Today we heard from the head of the Philly fed pat harker. He was saying that officials expect to slow the tempo. We also had the data on wholesale inflation, the reading on PPI, a little bit below estimates, producer prices for the month of October coming in year on year with an increase of 8%. Yeah, it's hot on a relative basis, but the market was looking for something in the vicinity of 8.3. So a move lower in yield across the curve today, ten year treasury dropping about 8 basis points to 3.76% at the shorter end of the curve the two year was down 5 basis points to four 33. Then you look at the equity market. We were higher across the board, particularly for the NASDAQ comp, which picked up about one and a half percent. The S&P, better by 9 tenths of 1%, Dow industrial average, a head just by two tenths of 1%. Early going in Sydney is negative, ASX 200 down two tenths of 1%. Let's get an update on global news next. The president of Poland has
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"In arsenal loses in the Europa League. I'm the enforcement I'll have that story more coming up in Bloomberg's boards. That's all straight ahead on Bloomberg daybreak Asia on Bloomberg 11 three O New York. Bloomberg 99 one Washington D.C., Bloomberg one O 6 one Boston, Bloomberg 9 60 San Francisco, Syria's exam one 19 and around the world on Bloomberg radio dot com and via the Bloomberg business app. It's the final day of the trading week in Asia. We made it. We've got the market in Australia starting to open right now a little bit of weakness for the ASX 200. We're an hour away from trading in Tokyo and in Seoul. If you're joining from the region, good morning, I'm Doug prisoner at the Bloomberg interactive broker studio in New York. In Hong Kong, I'm Rashad salami, the Bloomberg fabrication presented by interactive brokers interactive brokers clients are an interested up to 2.58% on the idle cash in their brokerage accounts visit IBKR dot com slash interest rates to learn more. So the Bloomberg's Brian Curtis and I guess the big story today is going to be the BOJ. Well, that's coming up. Yeah, that's something to think about. At the moment, the big story is the earnings, which you guys will detail in a moment. And I'm actually puzzled about this that NASDAQ 100 futures are only down about 7 tenths of 1% and S&P E minis only down a little more than a half a percent. I would have thought, given the really rough ride that Amazon is having in after hours, it's moderated, some of the losses, but still down 12% at the moment in after hours. That that was going to feed through to a very tough day for U.S. markets tomorrow because it's not only Amazon, but many other companies. However, Apple initially traded lower on its earnings, but then rebounded to trade up. And at the moment it's up about four tenths of 1%. So a little bit of a rethink there on the earnings that Apple eventually delivered. The S&P 500 closed lower. But again, the action today would seem to be somewhat moot given the heavy weighting that some of these big stocks have in the indexes as we head into tomorrow. The future is in Asia are all lower. They're not down a lot though. It's pretty narrow ranges. The cash market in Sydney is just open down, but it's only a quarter of 1%. The dollar is flat now. Dollar yen one 46 16, the yield on the ten year treasury tumbled down to 3.91%. So it's going to be interesting today. WTI 88 60 a barrel, dug to you. All right, Brian, thank you. Well, let's get to Amazon after the bell the ecommerce giant said sales for the current quarter will be in a range of a 140 to a 148 billion the street was looking for one 56. You know, this company has been dealing with a pullback in consumer spending, not just where we are headed, but what happened in the last quarter revenue missed projections. We also have to consider sales for the cloud unit. This is Amazon Web Services. Here's Bloomberg's punam goyo. Keep in mind that AWS generates the bulk of Amazon's profit and margins did come into percentage points lower than we're expected. So that's probably why the total margins are much lower than expected. Not to say that they haven't been making those cost saving initiatives or that they're not tracking, but AWS is a big contributor to the miss there. And another troubling spot here operating expenses up nearly 18% to a total of a $125 billion. By the way, that's the 5th straight quarter where expenses increased faster than revenue growth. Rich? Okay, let's have a look at Apple now. It isn't immune to a broader slump in tech. The company posted weaker than expected iPhone and services sales were the iPhone generating about $42.6 billion analysts recording for 42.7 billion. Now, this may worry traders is the iPhone does remain the biggest source of sales for the company as a result. The cloud and otherwise upbeat report overall revenues of Apple grew 8% and it was due to better than anticipated better than anticipated growth in its American wearable businesses. Apple shares initially post market were down about 6 and a half percent before recovering. In fact, last time I checked, they were up by about half of 1%. 5 minutes after the hours, we update global news. Well, the U.S. has
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Hong Kong and Singapore. It is a 7 30 the evening on the eastern seaboard of the United States. I'm Rashad salami. And I'm Doug Krishna at the Bloomberg interactive broker studio in New York trading will begin at the top of the hour in Tokyo and in Seoul we've got Ian on a weak side of one 50, higher treasury yields across the U.S. curve, and weaker stocks, Bryan Curtis will join us momentarily for a closer look right now a few of the sours top business stories. Talking Japan data coming out CPI year on year as slightly stronger than expected was thought to be at 2.9%. We got a figure of 3% of the figure X fresh food, 3% as well. So we have more on that coming up. Let's turn that to Elon Musk and his plans for Twitter because they involve slashing its staff by nearly 75% in a matter of months. That's according to documents obtained by The Washington Post. We get reaction now from we got reaction earlier from Bloomberg's Kurt Wagner. What we've seen from Elon in the past is that a lot of his estimates have been pretty extreme in terms of what he thinks for revenue or user growth. And that could be going extreme in the other direction too with cost cuts, right? So while he has been telling banker 75%, maybe it's going to be a little bit less than that, but regardless, this is a really big deal because this is a lot larger of a layoff than I think anyone expected for Twitter, even those who are bracing for them. Earlier, this month must he would follow through with his agreement to take Twitter private ending a months long court battle over the deal, The Washington Post saying that even if Musk doesn't end up owning Twitter, the company would need to trim its workforce in order to cut costs. After the bell stateside, we heard from snap, the company reported it slowest quarterly sales growth ever the social media companies saying third quarter sales rose just 6%, a total on the top line of 1.13 billion. The street was looking for something closer to 1.14 snap said the decline in advertising spending continues to drag on results. We spoke earlier with Jasmine and Berg, she is principal analyst at insider intelligence and she broke down why ad spending its snap is declining. It is a platform that really is tier two for many advertisers. It's also carved a niche within augmented reality. And it's stuck in an experimental bucket for a lot of advertisers. So it's among the first to go. But I do believe that this is something we'll be seeing across the board. Now in the third quarter snap grew, it subscription service SnapChat to about one and a half million users. The priority now obviously is to boost revenue, snap saying it's been investing in improving tools to measure ads on its platform. The stock right now in late trading is down roughly 27%, Rashad. All right, well let's get to Brian Curtis, who's with me right now in the Hong Kong studios, the Asian trading day gets underway with 27 minutes away from the start of the session in Tokyo. Yeah, let's take a closer look at the Tokyo market and you mentioned that the September core consumer prices in Japan rose 3% year on year that matched the estimate. CPI excluding energy and fresh food was up 1.8% year on year and that also matched the estimate. We do have a dollar yen here at one 50 19, so everybody watching to see how Japanese authorities respond to this. I suppose if you look at what a lot of traders are saying, they're expecting more around the level of one 51 to be an area where perhaps authorities will come in. The Bloomberg dollar spot index is slightly stronger. Now, less than a tenth of a percent though the Euro at 97.77 U.S. cents. And with Liz truss resigning the pound took a hit, the pound right now, a dollar 1222. It was down day for stock treasury yields were higher and as we have been expecting almost daily. We had more hawkish commentary from fed officials. And let's take a look now at some of the final numbers, the S&P 500 down 8 tenths of 1%, the yield on the ten year note, 4.22%, the yield on the two year, all the way up at four 61. Oil prices down a little 84 48. And we had some earnings other than snap caring posted slower sales growth than LVMH and Hermes in the third quarter. The Gucci brand held back by continuing restrictions in China, the COVID-19 restrictions, stunting their growth comparable revenue at the Italian label up 9% in the three months ending September, analysts had expected 11%. Just about 35 minutes past the hour Rashad back to you. Absolutely. We do check markets every 15 minutes or so
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Here in Hong Kong and in Singapore, it is 6 30 p.m. on Wall Street. I'm Rashad salami And I Brian Curtis here in Hong Kong alongside rich in our studios. In Hong Kong trading is about 30 minutes or rather 90 minutes out in Sydney Tokyo and Seoul actually no trading insult today because we do have the mid autumn festival. Hong Kong and also China will be shut down for that today. But it looks like the bullish trend from last week may continue this week, but the most part we're trending to the upside. We'll get to markets in a few moments, but for now some of the top stories. Treasury secretary Janet Yellen and the Federal Reserve saying that the Central Bank is going to need great skill and some good luck to achieve a soft landing for the U.S. economy telling CNN State of the Union that the U.S. can't have a strong labor market without getting inflation under control. She wants the fed to use. It's best judgment when tackling high prices. They're independent and they have great expertise proficiency in a valuating what it's going to take to bring inflation down and we're going to leave them to use their own independent best judgment to try to accomplish that. I believe our goals are very well aligned. It means I'm recent comments on inflation from fetch a J pal have increased some expectations for a third straight interest rate hike of 75 basis points. The fed meeting next on the 20th of September. Activist investor Dan Loeb has backed away from a call for Walt Disney to spin off ESPN. We get that story from Bloomberg susannah Palmer. Loeb's third point LLC acquired a stake in Disney last month and called for changes, including the spin off of ESPN to reduce the parent company's leverage. After executives at the media giant rejected those calls, Loeb backed down, saying he has a better understanding of the Sports Network's potential for the media giants global growth, and he looks forward to seeing ESPN head James petaro execute on the growth and innovation plans. Susanna Palmer, Bloomberg daybreak, Asia. Disney traded up two and a half percent in the last session. In the meantime, Walt Disney CEO bob chapek spoke today with Bloomberg in an interview at Disney's D 23 fan event in Anaheim, California. He said the ESPN sports networks are critical to his vision of the company and something that the under 35 audience is telling the company they want. The Japanese government must take necessary measures to quote while paying close attention to the Jens undue one sided movement that according to the Japanese deputy chief cabinet secretary seiji kihara, Kiara's comments coming after a week when the yen hit fresh loose against the dollar. Officials have not yet offered specifics on how they might act to stem the Jens rapid depreciation separately. In ban tourism rules are said to be relaxed to benefit from the weekend. All right, the time 33 minutes past the hour, we update markets every 15 minutes. Let's take a closer look at what to expect today. Looks like we'll see some gains, Australian and Japanese equity futures are higher. Markets will be closed in Hong Kong, China and South Korea for the mid autumn festival. Friday's action on Wall Street offered plenty of support for this week and it seems like we're going to be moving forward. U.S. share is snapping a three week losing streak last week, the S&P 500 up above its 100 day moving average, with a gain of one and a half percent, the Dow was up 1.2%, and the NASDAQ was the outperformer gaining 2.1%. Now, the rosier mood will be aided by dollar weakness. The Euro firmer on hawkish ECB comments, the bundesbank president walking nagle had said that the ECB will be required to continue raising interest rates if price pressures continue. We see the Euro now is stronger than parity, 1.0066 against the greenback. The Australian dollar 68.4 U.S. cents, little change, and dollar yen, we heard the comments there passed on by rich, dalien one 42, 59. So keep a close eye on that today, the yield on the ten year treasury 3.30%, the two year at three 55, and WTI crude is trading at $86 and 48 since sobral that's down about a third of 1%. We mentioned the dollar weaker on Friday by 6 tenths of a percent down another one tenth of a percent this morning. Rich. All right, well, we are approaching 25 minutes to the top of the
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"On a negative note with every market except New Zealand lower being led lower by South Korea's Cosby down one and a quarter of 1%. Brian Curtis will be along shortly with a broader market check. What Chinese banks will likely trim their benchmark loan prime rates today, we get more from Bloomberg's Rashad salamis. The one year loan prime rate is expected to be cut by ten basis points. That's according to all 20 economists pulled by Bloomberg. This would help to spur borrowing demand and reverse the slump in consumer and business sentiment. Last week, China reported troubling data that indicated the economic slowdown is deepening as COVID outbreaks spread. Meantime, a property crisis in China has led some home buyers to go on a mortgage strike. Now unless they're saying that banks may make a more aggressive cut to the 5 year loan prime rate to aid home buyers, Bloomberg economists are currently divided on this. The median estimate is for a ten basis point reduction. Those 7 of the 20 economists surveyed expect an even larger margin of 15 basis points. In Hong Kong, I'm Rashad salami Bloomberg daybreak Asia. U.S. stocks and corporate bonds have risen together, but now some analysts say they're set to diverge. We get more from Bloomberg susannah Palmer. A near 12% advance in July and August has put U.S. stocks on course for one of the best summers on record. And company bonds have gained 4.6% in the U.S. 3.4% globally since bottoming out in mid June. Having moved in tandem, the two are now set to diverge, with bonds looking better placed to extend the rally as the dash to safety in an economic downturn will offset a rise in risk premiums. This, as beneficials have indicated, they're not ready to stop tightening until they're sure that inflation won't flare up again. For government bonds, that means a potential flight to safety that would also benefit debt from investment grade firms. But for stocks, it's a risk to earnings that many investors may be unwilling to bear. Susanna Palmer Bloomberg daybreak Asia. United health, Amazon, CBS, and option care health, the vying to acquire signify health, united health has submitted the highest bid in excess of $30 a share, and we're told Amazon's offer is close behind. Signify is holding a board meeting tomorrow to discuss the bids and we hear final bids are expected on September 6th, but a deal could come earlier if any of the party's preempt the sales process. No plans are finalized to the better plans could still change and signify could always opt to remain independent. Let's get over to Hong Kong now for a check of market action with Bloomberg's Brian Curtis Brian. Jules Asian equity benchmarks have dropped more aggressively than what the futures had tipped earlier. Right now we've got the nikkei and also the cost and the ASX 200 all down more than 1%. Stocks and bonds look set to tumble even more, even though inflation has peaked. That's according to the latest ML IV pulse survey as rates rate hikes reawaken the sell off that we saw earlier this year. Ahead of the Jackson hole symposium, some 68% of respondents see the most destabilizing era of price pressures in decades, eroding corporate margins and sending equities even lower. So that's what we have ahead according to the poll. Right now we've got some pressure on equities from the dollar as well. The dollar is stronger this morning has started slowly, but now advancing the Bloomberg dollar spot index is up two tenths of 1%. The DXY has gained two. The yield on the ten year treasury has ticked up another basis point to 2.99%. The two year yield is at 3.27%, and WTI is still below $90 a barrel. In fact, it's even just a little bit lower now. Down one and a quarter percent at 89 65. We've seen some stability in Bitcoin. We actually had some broad gains earlier at the moment, Bitcoin, 21,450. And that's a brief look at the markets. Juliette back to you. Thank you, Brian. 34 minutes of passing out time for global news
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Bloomberg daybreak Asia. 6 30 in the morning right here in Hong Kong and in Singapore and says 6 30 in the evening of the Atlantic seaboard of the United States and Rashad salami. Well I'm Brian Curtis here in Hong Kong and looking at markets, investors faced with the dilemma. Yes, the fed was hawkish at the last meeting, but so much has changed in the past three weeks. How relevant is it? So that'll be on the minds of most today. Right now we see equity futures trending a little bit to the upside, Australian futures are up more than half a percent. S&P E minis are up and we see nikkei futures fairly firm, but a little bit lower for China and Hong Kong. We'll get to the markets in a moment, but for now, some of the top stories. GameStop announcing a four for one stock, but Wednesday in the form of a dividend. This makes him the latest company to do so as the practice has gained popularity. GameStop signal plans to split the stock in March at the time, the company said the split would provide flexibility for future corporate needs. So as to say the dividend will be distributed after the close of trading on the 21st of July the shares, which are actually down by 21% this year, rose around about 5% in the extended session. The price of oil has steadied around $100 a barrel after plunging on Tuesday. Goldman Sachs says that the drop on recession fears was overdone. Meantime, the outlook for energy consumption in China has improved as demand for gasoline and diesel nears a return to pre virus levels. Even so Citigroup's global head of commodity research had more says the app look for oil demand will likely see further downward revisions. Almost everybody has reduced their expectations of demand for the year. We reduced ours by about a million, 200,000 barrels a day where at the 2.42 .5 million barrel a day level that similar to where the EIA and the IEA are and I expect that we'll be seeing further downward revisions in demand. Demand is simply not growing on an empirical basis to agree that people had expected. Ed Morse from city, Citigroup reiterated its base case for oil prices at $85 a barrel. And added that supply is accelerating into yearend, the current WTI crude price, $98 14 cents a barrel. Okay, let's have a look at what sources are telling us about Shang-Chi lithium raising some $1.7 billion after pricing its Hong Kong second listing, making it the biggest of this year. This is a battery material supplier. It's still just over a 164 million shares to 82 Hong Kong dollars a piece that shares their brakes a month long drought for large offerings here in Hong Kong. According to preliminary statements, these share sale has drawn 7 cornerstone investors that are set to snap up about 38% of that listing a representative lithium and didn't immediately respond for a request for comment. All right, 33 minutes past the hour, we take a look at markets every 15 minutes here on Bloomberg radio. Well, I mentioned that investors will be facing this dilemma about the fed minutes. So they were pretty hawkish and it looks like another 50 to 75 basis points, but since that time we've had a big drop in oil, we just talked about that down to $98 a barrel. A big drop in yields, yesterday the yield on the ten year was at two 82 today at two 92, but still down some 60 basis points from the levels that the ten year earlier, about three weeks ago. And so right now investors a little bit mixed, so we have some modest losses expected in Hong Kong and China. And I mentioned earlier that there really are a lot of constraints for going into China at the moment. The PBOC looks set to withdraw cash from the financial system. You have the U.S. and China kind of butting heads again. China accusing the U.S. of technological terrorism, rising cases in Shanghai that sort of brings up the idea of another lockdown. We just heard from Ed Baxter, the top official in Hong Kong, urging China to really mix with what has made Hong Kong great. And of course, again, those hawkish minutes from the fed. So it all sets up as a day where it might be a hard to find direction. Dolly Ann here one 35 82, the Euro just one O one 86 against the dollar and the yield on the ten year or the two year now, 3.00% Rashad. All right, it is just what came up to 25 minutes to the top of the hour
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"7 30 in the morning right here in Hong Kong and in Singapore it is 7 30 in the evening on the Atlantic seaboard of the United States and Rashad salami And I'm Paul Allen in Sydney where it's 9 30 Thursday morning where half an hour away from trading in Sydney Tokyo and Seoul I'll update you on what to expect in a moment but for now rich and I will run you through some of the day's top business stories Now Securities and Exchange Commission chair Gary gensler laid out his vision of revamping the U.S. stock market's rules It would be one of the most significant changes in recent times against asking himself to consider creating an order by order auction mechanism This is intended to help retail traders obtain the best pricing for their orders against us saying that the U.S. equity market needs to be more transparent And fair for the investor Right now you see there is not a level playing field amongst the different parts of the markets The wholesalers the dark pools the lytics changes It's not clear with such market segmentation and concentration And yes with an uneven playing field that our current national market system is as fair and as competitive as possible for investors Gary gens is speaking of the pipe of global exchanges in brokerage conference the changes outlined by against the would require two votes by the agency's commissioners to take effect If enacted they could mark the biggest overhaul for the U.S. stock market in more than 15 years it would also be the SEC's most direct response yet to last year's wild trading in GameStop and other meme stocks Intel the largest maker of computer processors is a weaker economy will affect demand and hurt financial performance This is according to chief financial officer Dave zinser the comments added to concern the booming demand for semiconductors and electronics is going to be slowed by inflation and weaker consumer spending Also declined to update the company's projections for the second half of the year until she is falling 5.3% of Wednesday's close in New York and that's the lowest since October 2017 All right we've got Amazon consumer chief Dave Clark leaving the company after two decades You'll be joining logistics software startup flexport as its co CEO as of the 1st of September Amazon CEO Andy jazzy telling us that he wasn't surprised by the move in the company will move forward And I think that if you want to build a business that lasts a hundred plus years and at last all of us you have to get used to these sort of transitions and make sure that you're doing the right succession planning and you've got the right talent to keep building the business And we've done that historically and I expect we'll do it again That's emergency Andy jazzy speaking of the Bloomberg tech summit Dave Clark was among senior executives whose compensation package was singled out by investment advisory firms They should be better tied to company performance His pay package was $56 million in 2021 The Chinese ADRs rose after China approved its second batch of video games this year following a month's long freeze We've got more from Bloomberg's Rosalind chin China's national press and publication administration granted licenses for 60 new games That's up from 45 in April Chinese publishing joints Tencent and nettie did not receive approval but analysts see their chances improving Overall it's a step toward normalization in the world's largest mobile entertainment arena In August Beijing regulates introduced stringent measures capping playtime for miners This was aimed at curbing addiction Bloomberg news reported that China's media watchdog has been reviewing new titles to determine whether they meet stricter criteria on content and child protection Our muslin chin Bloomberg daybreak Asia All right let's take a look at the Japanese yen one 34 44 right now and that's the lowest we've seen for a very long time in fact the lowest the end has ever been since the turn of the century is one 35 15 so we are rapidly closing in on that Also keeping an eye on the Euro today one O 7 20 against the greenback at the moment and of course it is ECB decision day that meeting of the European Central Bank will be happening later on and will be followed by a press conference from Christine Lagarde so that's going to be watched very very closely to get some sort of sense about where rights might be headed next in Europe We do know we're probably going to see the end of QE and probably the end of 8 years of negative rates as well so the end of an era when the ECB meets later on More presently we do have markets opening at the top of the iron Tokyo Sydney and soul of futures suggesting we're going to be off to a weaker start when we get going Annika features kind of flat right now here in Australia futures pointing lower by three quarters of 1% those numbers do reset in about 15 minutes time But we did have a weakest session for U.S. equities markets all the major indexes a week The S&P off by a little bit more than 1% and the Philadelphia semiconductor index off by just about a 2.4% So keep an eye on some of those tech names When we get going here in Asia elsewhere we are seeing continued strength for the oil price West Texas right now one 22 30 a barrel supplies continuing to lag inventory at Cushing dropping and speaking of dropping natural gas falling at 8 35 one at the moment we did have a fire at a U.S. export terminal a little bit earlier on that seen the price decline reasonably sharply Later on today also trade numbers out of China for the month of May and machine tool orders out of Japan but for now that is your market update and we'll get a check of global news.
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Policy is to build an environment around China saying Beijing can not be trusted Cancer patients seek damages from Fukushima nuclear plant operators German Chancellor Schultz says Putin must be stopped I'm Ed Baxter with global news Another top ten seat loses in the women's draw the French Open I'm Dan Schwartzman I'll have that story more coming up in Bloomberg sports That's all straight ahead on Bloomberg daybreak Asia on Bloomberg 11 three O New York Bloomberg 99 one Washington D.C. Bloomberg one O 6 one Boston Bloomberg 9 60 San Francisco Syria's XM one 19 and around the world on Bloomberg radio dot com and via the Bloomberg business app Welcome to the program the final trading day of the week in Asia after a rally here in the U.S. equity market If you're joining from anywhere in the pack grim good morning I'm Chris at the Bloomberg interactive broker studio in New York And in Hong Kong I'm Rashad salami it's been a big day break Asia presented way interactive brokers charging margin loan rates from 1.33% to 2.33% greater subject to change learn more at dot com slash compare now Doug what have we got in terms of the prospects of the Asian session I suppose we can't really of course see anything but a rally but of course these things don't often play out like that The question I think rich is whether or not this is a bear market rally right The buyers were firmly in control today the equity market leaped higher We had the Dow picking up about 1.6% The S&P 500 better by about 2% today Look at the NASDAQ composite up 2.7% Volatility has certainly become a defining characteristic these days The moves plus or minus have been extreme It's not uncommon to see a major benchmark move up one day at least 1% in down by an equal amount the next Today retailers took the spotlight we had Macy's lifting its profit forecast given demand for high end goods may see shares were up 19% today not to be left out the deep discount retailers like Dollar Tree and Dollar General both of those shares rallied after the company's raised projections and then on top of that the Alibaba story with sales beating estimates will take a closer look at that momentarily Then the big announcement on the tech front with Broadcom making it official the company is buying cloud computing maker VM where for $61 billion in VMware shares today up by more than 3% We'll take another look at market action in 15 minutes here on daybreak Asia rich Absolutely let's have a look at that Broadcom story in a bit more detail here as it looks with that $61 billion for VMware Now it is one of the largest technology deals in history importantly It has the key support of key VMware shareholders Michael Dell as well as the tech investment firm silver Lake Here's Bloomberg said Dina bass Broadcom is basically saying that VMware is going to become the new name for its software business It's going to become the focus of a software business that they've been building for the last couple of years There is also a go shop provision in here though So VMware can for a limited period of time try to find other bidders So we'll see if that creates additional weight breaking drama in this deal Broadcom has received a $32 billion in commitments from a consortium of banks to help defund the deal It's expected to be completed in BlackRock's fiscal year 2023 If either party were to back out a one and a half $1 billion breakup fee would apply Let's talk about Alibaba's sales topped estimates with quarterly revenue rising 9% Baba is considered to be a barometer when it comes to Chinese consumer sentiment given its dominating the footprint when it comes to ecommerce Now this beat on sales gives the market some strong reassurance as it tries to measure the cost of those lockdowns in China That said Baba also refrained from offering its usual outlook for the year but that didn't hold back the ADRs today as I mentioned earlier they were up more than 14% The biggest gain that we have seen in nearly a month Okay that time when we have a look at what is making global needs.
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"Just gotten 7 30 in the morning right here in Hong Kong It is 7 30 in the evening of the Atlantic seaboard of the United States I'm Rashad salami And I'm Doug Krishna at the Bloomberg interactive broker studio in New York trading will begin at the top of the hour in Tokyo Sydney and sold quite the recovery for U.S. equities in the Friday session maybe a little bit of a display of resilience Have we put in a bottom Well the E mini futures for the American market those contracts pushing higher Brian Curtis will be buying momentarily for a closer look Right now a few of the sours top business stories rich Well we did witness a late session rally in U.S. stocks on Friday which brought the S&P 500 back from the brink of a bear market We've got many traders now wondering where the market bottom is and whether a recession in the United States is avoidable White House economic adviser Brian D stopped shy of ruling out a recession saying that they were always risks these said reigning inflation is a top priority for the Biden administration telling CNN State of the Union that much more needs to be done We need to give the fed the space in the independence to do its job which is to get inflation under control Second we need to lower costs for families Make things more affordable for them during this economic transition And third we need to reduce the federal deficit If we reduce the federal deficit will help to reduce price pressures in the economy we've made a lot of progress on that because of the president's policies but we can do more That's White House economic adviser brandes heard here on Bloomberg Deez added that the U.S. economy is better positioned than any other major economy saying that markets are at least pricing in the risk of slower growth with the S&P 500 down to 18% so far this year Today in Beijing shareholders in DD global will attend an extraordinary meeting in their expected to bless a plan for Dede to delist from the New York Stock Exchange Now this delisting would represent some cooperation with regulators in China after an 11 month ordeal which came to symbolize China's tech crackdown authorities have been demanding an overhaul of Dede's data system as part of a cybersecurity review only then will DDB free to begin preparation for its Hong Kong IPO All right let's have a look at what the portends are for the week ahead for financial markets in Asia as the trading week does get started Let's get to Brian Curtis A little bit of positivity in the Asia Pacific at the moment S&P E minis up 9 tenths of a percent now so really pushing to the upside and most of the futures are looking reasonably solid outside of Hanks and index futures Nikkei futures 26,970 So that suggests a very modest climb at the beginning Australian futures down about two tenths of a percent I mentioned that Hanks hang index futures were down one and a half percent FTSE China a 50s flat Right now the dollar is weaker that's generally a good sign if you're looking to take on risk The Bloomberg dollar spot down a tenth of a percent Yield on the ten year 2.78% so lower interest rates in the U.S. and WTI crude has picked up a little here one ten 31 a barrel Rashad back to you All right well indeed let's just remind ourselves that we do look at markets.
Bloomberg Radio New York
"rashad salami" Discussed on Bloomberg Radio New York
"I'm Ed Baxter And I'm Davis Pellegrini and it's not just the fed Yeah we're watching monetary policy in all the major world economies And that includes China right And we heard all about it from David wan He's a chief China economist at Credit Suisse And he had a lot to say about inflation in the country on the producer side And also about whether China would cut the reserve requirement ratio or R for banks And here he is with Bloomberg's Ivan man and Rashad salami China it's recovery has been kind of ahead of the curve But of course part of that is due to the fact that China got hit with the pandemic much earlier than the rest of the world as well So the rest of the world can actually use China's dynamic not every single feature but the overall dynamic as a rulebook Now we see that China is decelerating in growth We see that China is facing very high pressure on the PPI side What's unique about China however is that the PPI inflation hasn't really translated into CPI inflation So within China the problem is how does that play out in the rest of the world Because we saw how disinflation and deflation was exported from China for years So does that PPI translate into more inflationary pressures globally speaking I think there's a possibility of that but I don't think it will be in the main driver of global China this time around I don't think will be the main exporter of the inflation for global especially for the advanced economies for mostly two reasons right One is that the inflation pressure in advanced economies are a lot of it's driven by services which is non tradable So you don't get them got your haircut or your barber or your salon treatment or whatever From exporting Chinese goods However there is some upward pressure in the sense that China might be passing along some of the raw material cost and also some of the higher intermediate goods cost in their exports Because these are the treatable goods that they can be passed along to the rest of the world for those who for their major importers Where does that leave the PBOC there So that leaves China with very limited room to maneuver So of course the Chinese PBOC will have to first focus on the Chinese domestic economy And if you look at the CPI which has been in this inflation for the year then you can technically argue that they have some However what's the rest of the globe They can't ignore the rest of the world So our view I credit Swiss is that I guess my view is that for the rest of the year China's PBOC can do very modest loosening at best And that translates quantitatively means that there might be some modest acceleration to money supply growth in terms of M two growth However we're not anticipating any more triple R cuts for the rest of the year and then we have to for any additional loosening beyond what's in our baseline for the rest of the year We'll have to weigh essentially until next year when I think China might indeed announce a fairly aggressive target in terms of their growth which we think will be around 6% And then to achieve that target I do think that's both their monitoring policy and their fiscal policy will have to turn a little bit more accommodative compared to this year to achieve that Are we likely to see that more drainage now that kind of seasonal demand is starting to ease And is it just going to be more drainage until we get some kind of announcement if we do on a triple R cut So once again I don't think we'll have the trip out So people who are waiting for that might be sorely disappointed That being said I think some of these liquidity adjustments are as you pointed out exactly their seasonal right So they don't truly reflect any meaningful change in the overall policy stance or the policy attitude What they do represent is that the authorities or our interpretation of it is that the authorities will try to maintain sufficient liquidity especially as a property market situation It will maintain sufficient liquidity for the banks and for the financial system But they will of course use that these operations to adjust that liquidity as needed David we're seeing a slowdown in China which is largely supply side driven But the thing is we got other aspects of the economy which must stem from the property developers It's not what's happening with them It's probably more also what happens to local governments who rely on landfills in many ways And other aspects which may have well unthought of consequences of what's going on with those developers And that may increase that huge debt led to the local governments already have even further And that's got to be something which authorities in China have to be worried about in the medium to long term You're absolutely right I think this is something that especially the property market or the vulnerability or the property market as a trigger for the depth issues that the Chinese economy has been facing That is a that is an area that requires constant and dedicated policy attention They can not afford any misstep on kind of managing So I think that the property market where the real estate sector is a decelerating and eventually contracting sector in China in the medium term Do we think that it will blow up in the next 6 months the answer is no However that means we have to the policymakers have to pay very close attention to it to make sure that they address the situation and make sure that they don't have a disorderly default And that was David Wang chief China economist at Credit Suisse with Bloomberg's Ivan man and Rashad salaman And coming up what next for cryptocurrencies You're listening to Bloomberg best The name Now streaming on peacock What's.