tv Bloomberg Markets Asia Bloomberg July 15, 2019 10:00pm-11:00pm EDT
david: all right. today. happening [laughter] which is a bit of a blessing because it yesterday was a bit eventful. lethargic chinese data came out. and went all the way to the. u.s. close. yvonne: you have to wonder where come were markets responding to the moderation in growth and therefore there will be policy support, or the fact that perhaps it was a relief rally, and perhaps that has fizzled out this morning? take a look at the gtv function, not a whole lot of action today. japan is the key to watch, coming back from the holiday and the dusting the gdp news from china. we're also watching the chinese benchmarks. the philippine peso, we are theng it is coming up,
highest since done already 2018. the market entering a bull market yesterday. people say that earnings will be enough to continue the rally moving forward. and we are watching the commodities space. ron and steel the rallying. steel output in china hit a record high. close to 2% iron four in singapore. and we mentioned the bond story. we see yields taking the work -- we see this taking yields going lower once again, ahead of jay powell speaking in paris later today. the aussie 10-year yields move. point.six basis in the july meeting, they said rates ind adjust australia, but it looks like they could take a positive or now. yvonne: that is the move we are
seeing across the bond markets. that the see what else we are tracking. -- some of your 10-year yields, the hong kong dollar is stronger for the first time in seven days of breaking the seven day winning streak. watch what hybrid does today, it has been falling. it comes out in about one hour. we are also watching. oil prices, down .25%. yvonne: back below $64 a barrel, wto. it will be interesting to see, we are seeing this surge in iron and steel, but oil doesn't seem to be playing a part. this is who we will see hear from this week before the fed goes into their blackout period before the end of the month meeting. jay powell, and then take your. pick, more fed speakers and days this week? david: about two of them per
day. it really will be a high bar for them to come out and say, maybe they think about looking back expectations for a rate cut. i am not saying there will be, but there might be a coordinated response. yvonne: u.s. retail sales are also out today. perhaps this rate cut is a done deal. let's get to the first word news with selina wang in beijing. yvonne.s, iran says the door is open to talks with the u.s., if president trump list the sanctions he first impose in 2017. the foreign minister told nbc that it is america who left the bargaining table, and they are welcome to return. tehran is also warning it may revise its nuclear program back to the status it reached before the 2015 deal was signed. the e.u. says there is still time to find the deal. >> together with all the member states and also the rest of our international partners, to preserve the nuclear deal with iran and put in place all the measures, so iran can go back to
full compliance, as it has been until a few weeks ago. selina: new york manufacturing has improved indicating factory activity may be stabilizing, after slumping to a three-year low. the empire state index has risen to 4.3, jumping from the june reading of -6.86, the lowest in almost three years. however, most factories say orders are lower this year and the measure of unemployment is at its weakest since january of 2016. brexit talks are becoming more hostile. officials in brussels say the meeting last week was one of the most difficult at any time in the past three years, with the british team seemingly bullying concessions. the e.u. is bracing for the appointment of boris johnson as prime minister. he has threatened to quit the e.u. with or without a deal.
"thef the producers of wolf of wall street" movie has returned more items allegedly bought with money stolen from malaysia's 1mdb state fund. joey mcfarland handed over several watches, artwork and movie posters. he said he received them as gifts from the malaysian fugitive financier and did not know they have been bought by illicit 1mdb funds. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm still annoying. this is bloomberg. ♪ david: yvonne was printing this out earlier, this is d.c., that is renminbi. 120. yesterday we had numbers out of china. the steel industry. , defied a slowdown, boasted another month record production. this is a look across that specific yuan contrast.
oil on the other hand, showing $60 a barrel in new york into where we are right now here in the asia-pacific, on concerns about demand from china, after production in the gulf of mexico . over the weekend, keep in mind, we had the tropical storm, so there is a disruption story here well. yvonne: let's bring in our next guest, sanford c bernstein hk limited senior analyst, dr. neil beveridge. dr. beveridge: i think it reflects the underlying consumer patterns happening in china. what we are seeing in the energy market is you know, very strong demand for natural gas. the chinese government is very coalas, trying to convert into oil. we are seeing a slowdown in demand from last year.
if you look at imports growth, it remains strong given the growth in independent refineries across china which are taking crude oil and turning it and then re-exporting them to international markets? david:? david: for those who may not be familiar with the noises of the up,market, why are imports and at the same time, where does opec keep cutting? dr. beveridge: china's imports are increasing at a faster rate than demand. that is because of changing government policy which has really stimulative the growth of independent refiners in china which are taking it more crude oil and exporting the product. not all of it is staying in china. globally, demand is still growing, still relatively healthy. we expect 1.2 million barrels of demand growth this year. but we are still facing a lot of growth in non-opec supply, almost 1.9 million barrels of non-opec supply, significantly
higher than demand. that means opec needs to keep a lid on production and potentially cut more if it is going to continue to manage prices around this $60 a barrel mark. yvonne: so if they extend the curbs, they actually need to go deeper. dr. beveridge: in the short-term, i think will continue to see inventories drop. the market will be undersupplied in the third quarter. but if you look into. at0, we have non-opec supply something like 2 million barrels a day. demand growing just over one million barrels a day. so opec will need to cut more if they are going to maintain prices around the $70 mark. if they don't cars, we will be falling down to $60 a barrel or potentially lower. so we are still in the period where opec needs to cut? david: do think that will be the story in 2020? we were joking during the break -- we have been here for four the first 2016 was
cut and then they kept cutting, and cutting, and cutting. at some point, the optimization of those cuts goes away. dr. beveridge: well, i think the strategy is small cuts in production will help bring about a disproportionate increase in prices. obviously, the hope among opec members is will get to the point where she'll production starts to slow? we?d: do dr. beveridge: i think in early 2020, it is inevitable we will drop from the 2 million barrels we are seeing at the moment to growth rates of one million barrels or potentially less. we are still a few years away from that, but i think we are certainly past the high point, or getting to the high point in terms of incremental shale oil growth in the u.s.. neil.: alright, i am wondering, when it comes to the earnings season in chinese companies coming out as well, what are you expecting?
there is a big push coming out for some of the governments to increase spending. they didn't do that in the first quarter. are you seeing a pick up there at all? dr. beveridge: yes. there is a lot of pressure on chinese oil majors to increase investment. the trade war with the u.s. has been a wake-up call to china. we are seeing more emphasis on energy security than we have ever seen. i think there is a lot of pressure on chinese oil majors to increase production. and that is what we are seeing -- oil production is now positive in china after several years of decline, growing by over 1%. we are also seeing gas production growing 8% to 10%, also the highest in some time. the increased investment is certainly translating into higher oil and gas production. when it comes to earnings, i think it will be very much split between upstream and downstream. upstream is certainly doing well
. prices,ood commodity production growth, stable commodity prices. in the downstream, it is a different picture, we are seeing softening demand in the economy for petrochemicals. given the growth in independent refining capacity in china, we've got something like over one million barrels of incremental refining capacity growth coming online in china. that is weighing on marketing margins for the oil majors. so upstream results should be good, downstream will be under pressure. yvonne: all right, neil, stick with us. we will have more from neil beveridge coming up. david: did or hour, no end in sight in this dispute between japan and south korea, we find out what is in store for the semiconductor industry. this is bloomberg. ♪
david: welcome back. we are talking specifically about petrochina. what a case study, this company. if you look back all the way, 15 years ago. the story today is that when you measure the valley of the company market cap, it is worth less than its reserves. have a look at the bloomberg 168 billion- dollars is a marker cap right now. low annotation is where the valuation of its stockpiles are. i want to zoom out and reset this. look how far we have come. at one point, it was actually one. yvonne: trillion u.s. dollars come at his let's bring in neil beveridge to talk about this. why the fall from grace here? dr. beveridge: petrochina was once the world's most valuable
company, it is a most impossible believe. over the last 10 years, we have seen a tremendous misallocation of capital within the company. petrochina used to enjoy return on capital of something like 25%. today it is around 4%. what management have done is taken the cash flow from the company and invested in very low returning projects which has effectively destroyed returns for the company. it has an expensive for revenue growth but not the focus for returns. in the long-term, for a stock price to outperforming the long run, you need to have improving returns, and petrochina has been unable to deliver that? david: would you say that the valuation it has been given is justified or is it to cheap? dr. beveridge: i think it is too cheap. the company is trading at about flow, the lowest multiple receiving in almost 20 years. but i think it reflects the high levels of investment.
petrochina are making if you look at capital spending, it is increasing again this year, something that investors don't want to see. investors have been 11 -- have very little confidence in long-term demand. if you look at the dividend yields. in petrochina, it is about 4%, lower than bp or shell, which 6%.about 5% or if you take the intrinsic value of the company and the reserve value, it is about $200 billion, and petrochina is trading be below that. going tonment is reform the pipeline industry in china. that still holds some value to bet for china. i think the catalyst for this stock is probably going to be the government announcement of pipeline reform in china. there is a lot of fear and uncertainty about whether or not minority shareholders will be disadvantaged in that process. i don't think it will be as bad as some people think.
that is obvious catalyst for the company in the near term. longer-term, management has to do a better job of allocating capital. up, and to get returns that comes right to the top, it comes down to management. yvonne: tell us about the pipeline reform. some analysts say it is a game changer and it will supercharge estimates. why are you not so optimistic about it? dr. beveridge: i think it is a big moment in china's oil and gas industry. i think it will result in an increased competition both upstream and downstream. -- gasarkets in china markets in china, it is still difficult for foreign companies to come in china and operate within china. petrochina and sinopec's still control the book of the acreage and i don't think it will change soon.e in valuation terms, i think petrochina will still be after significant shareholding in the pipeline company. i think worries around significant loss of value, ago
too far? david: can i trust that the it will make will improve? as you mentioned, cash flow? >> the other question is, it might be a few years too late. should i look at a company like petrochina? we know that we can't look at it the same way as you would other companies because the decision in mighte capex not be the best choice? dr. beveridge: wenzhou return on capital is 4%, your cost of 10%, generally, you should be giving cash back to shareholders rather than reinvesting it. the question you're asking is, what is the incremental return on those new investments? again, there is nothing wrong with spending capital per se if it is a good return on investment. what petrochina is pushing towards is trying to get higher returns in upstream gus prices.
gas prices are already at the highest in the world in china. the question is, what are the costs to drill these wells? they have to start getting the return profiles higher. yvonne: real quickly, before the earnings season, which company are you looking most forward to? dr. beveridge: i think his company, on the basis of spending, ipital think some of the service companies will start to benefit from that. this company will also deliver a good result based on production growth. less conviction on some of the downstream oriented names just because of the weakness we are seeing in refining and marketing? david: neil beveridge, thank you so much for coming to the program. coming up, we are talking chip tariffs between japan and south korea. could that backfire against japan? we ask asymmetric advisors senior market strategist amir anvarzadeh what he thinks.
>> to settle allegations that it failed to supervise traders relied while negotiating sales of mortgage securities. the s.e.c. says that traders misled about the prices for bonds and the tomorrow profits the traders would receive. nomura will pay a fine of $1.5 million. david: citigroup says it will continue to focus on cost cutting in the second half of this year, despite managing to save more money than analysts were expecting the first half, and in the process, beating consensus for fixed income trade share.ings per investment banking and equity markets revenue fell by more than 10%. all its big competitors reported
earnings nest will report their earnings later this week. yvonne: this company may be about to deliver china's biggest ipo of the year. it plans to raise up to $2 billion by selling a 10% stake of its chinese unit on the exchange.tock and, gets more than half of its tall revenue from its unit and plans to use the proceeds to finance new projects in china including soybeans and mills. david: let's turn our attention to the philippines, 50 minutes into the session, up 4.5 points in terms of the market data yesterday. here is a chart. -- there we go. 20% from the bottom in november is where we are. i would say, 22% right now at this point in time. stocks in manila have reentered a bull market. it is looking a bit overheated, though, when you look at the rsi. let's see what is driving this.
david: we are joined by our asian stocks on the list from singapore. what has changed here? >> what a dramatic turnaround for philippine stock market. what is driving this bull run is really a combination of factors. one thing analysts are looking at is earnings. they expect better earnings in the second quarter on the first quarter. in addition, cooling inflation helps. inflation growth has slowed to the lowest in nearly two years, giving room for central banks to cap more interest rates. least, the pesto is getting stronger, the fourth best-performing currency in asia . and that is giving investors confidence which has led to inflow of one and 400 million dollars into philippine equity funds this year. david: talk to us about individual standouts in this
-- et lienting lienting: i would say, property developers are the standouts. if you look at the top for gainers, so far, the two of them are property developers. mega world and robinsons land both gained more than 30% this year. in fact, a measure that gauges the performance of property developers in the philippines has gained 24% this year versus a 12% rise for the broader index. that is because of strong demand for office space in the philippines especially from gaming operators. as you know, the philippines is increasingly becoming a gaming destination in asia. yvonne: thank you so much, tu joining us from
singapore. focusing a bit away from philippines, the hang seng and chinese markets are actually .2%htly lower about .5% -- lower for the shanghai composite, the nikkei playing catch-up after the china gdp numbers, lower by .75%. we are also watching the airline stocks. david: a-shares china southern, china eastern, all upgraded at buy.o in the last stock we are looking out there, after missing a bond interest payment that was supposed to be paid yesterday, the stock is unchanged right now. flipping the boards, and china, stock was down the last couple of days for this company, up 6% today. a couple of other movers, i imagine this has to do with the iron ore story. yvonne: yes, iron ore rallying here today, and singapore and
selina fish it is 12:29 p.m. in sydney, i am selina wang with the first word headlines. the british pound is at its weakest ever july level, hitting a two-year low against the dollar, suffering a record run of weekly losses against the euro. patterns suggests it could august.urther in the pound may also weaken as the u.k. u.k. conservative party chooses a new leader, with a no-deal brexit still a possibility. the au is bracing for billions of dollars of u.s. tariffs as a 14 year dispute over aircraft boil.ies come to the
brussels expect the wto to give washington a green light to impose measures of up to $7 billion. duties on aircraft parts may be announced in the coming wings and -- coming weeks. this would add to tariffs already impose on e.u. steel imports. u.s. treasury secretary steven mnuchin says the administration has "very serious concerns" about facebook's cryptocurrency. libra has already drawn criticism from president trump. mnuchin says it is a national security issue and that the administration will not allow digital asset providers to operate outside regulation. the top banks working on the field budweiser ipo in hong kong are said to have missed out on up to $170 million in fees. we are told that j.p. morgan and morgan stanley would have split that cash had the sale not been moment.t the last
bloomberg data ranks morgan stanley as number one for equity offerings in asia since 2017. have displayed a missile seized in a crackdown on in your fascist political party. police also found a huge. cache of automatic weapons and nazi memorabilia. it is linked to an investigation of italians who took out in a russia-backed insurgency of ukraine. five men have been arrested, including one who ran unsuccessfully as a senate candidate for the far right in 2001. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm selina wang. this is bloomberg. david: thank you so much. have a look at some of these samsung suppliers, key suppliers of ¢, extending gains, well, some of them, not all. analysts saying that chipmakers are willing to use locally made
materials. the question is whether or not those materials are available locally. yvonne: meanwhile, president its economic block growth will not succeed, in the latest escalation of rhetoric between the two neighbors. david: joining us from singapore is a mere amber zander, senior strategist at asymmetric advisors. very nice to see you. your broad thoughts on the story between japan and south korea. what do you make of what is happening and you think it will get results anytime soon? amir: just hearing that rhetoric from both sides, it doesn't seem to suggest that this -- that we are going to have a swift resolution to this conflict, which spans back to the wartime issues that korea has with japan. just hearing the politicians , i justh sides speaking
doesn't seem very likely that we are going to have a swift resolution. yvonne: and it seems to be at this point that south korea is at least urging an encouraging their companies to reduce their dependence on japan and even the south korean president said, this could actually end up backfiring for tokyo. you see it that way? since you focus mostly on these companies in japan? amir: totally. we think this is totally a very big self-inflicted wound. by the japanese. we were just coming out of the crisis, in terms of the thisi ban, and now we have issue to deal with. the south korean semiconductor companies make up roughly 40% of total globally.
-- roughly of total capex globally. they supply the koreans mainly because they have the scale, so pricing wise, they are very competitive. the technology is concerned, the koreans will have no problem scaling production domestically and locally, and basically take the japanese out of the supply channels altogether. because price is no longer a consideration, supply becomes a it. a vital aspect of one aspect, one segment of this come thesuppliers, knees -- companies like shinetsu who are big supply there's to korean -- big suppliers to
korean chipmakers. it is one of those segments where the japanese have managed to dominate because of their size and scale, but to be barred the koreaning chipmakers over the long run will prove to be very, very negative for them. so rather than the canadian chipmakers -- we totally agree with that, we think over the long run, this will not be very positive for materials and equipment suppliers if this gets worse, in japan. david: do you think that eventuality does stop politicians from bickering, that we will at some point start to realize economic cost? as you mentioned, it is one of the most vulnerable. can you enlighten us on that? over in the case of emco, half of its sales come from samsung and hynex.
it has not been named as one sensitive area at the moment, so it is like total resistance, semiconductor, gases and other things have been named. but if this continues, a lot more segments of semiconductor materials will be included in this. the south koreans are actually looking to boycott more japanese goods as well voluntarily. sumco is probably one of the more geared, i would've thought to this issue, but over all i think there will be a lot more equipment suppliers and component suppliers as well that could potentially be engulfed if this continues to escalate. i think ultimately, the losers will be the japanese, japanese
firms. .nd the koreans will find yvonne:, alternatives i am just wondering initial market reaction seems to be that this will likely boost memory prices. is that how you see it as well? given the fact that the south koreans seem to be self-sufficient and maybe are able to fill the gap for their own companies, that this could limit the disruption of supply, how do you see that playing forward when it comes to cheap prices?- chip amir: they just depends how quickly they will be able to find the stuff they really need. one major area is photo resist. much of it is made in japan by three or four major suppliers -- shinetsu is another
and most of these photoresists are made in japan. that is one area wher of concern regards to supply. but the koreans are saying, we , supplieslternatives out of japan from the actual makers that supply them in japan. that the it does seem disruption potential might not be as big as what we initially thought. there was a disruption, after a sudden period of time, we will have a fairly negative issue. because if you can't supply enough chips, it doesn't really matter where chip prices go. point.very good final question for you, right about now is when analysts at the start of the year were projecting we would start to see signs of an end to the inventory correction in the industry.
where are we on that broader story? do the tensions between japan and south korea help things? amir: i don't think it helps things, to be honest. correction,ort-term it would help in the inventory stuff, the people were concerned about. lookingw at what is going onith mand, prices have not recovered in memory, the key segment as far as koreans are concerned. secondly, we were expecting a second half recovery and bottoming out, but since the evolved between china and the u.s. again, in june, we have actually seen things deteriorate once again. so looking at the early earnings indications coming from the japanese, tech companies, we see this downturn being prolonged
potentially to the end of the year, where at the beginning of the year, we were hoping for a second-half recovery. we just can't see that happening now. david: thank you so much for coming to the program as always, amir,. that was amir anvarzadeh, estimate advisors senior strategist. we just got a profit warning from giordano international, warning of a 40% drop in six-month net income and the stock is taking it straight on the chain. biggest drop in five years. the stock price is now the lowest level since march of 2016. yvonne: i was just thinking, this brings me back to my high school days, those were my brands. not a good day for the stock, down 10%. coming up, we hear from president clinton's former defense, and we
♪ david: welcome back. treasury secretary stephen mnuchin says he might go to for trade talks if initial contact on the phone this week was well. the jury is still out, of course, on what might have changed since negotiations in may. yvonne: professor of government kennedyarvard school spoke earlier about the likelihood of the u.s. and china decoupling. >> the relationship is now regarded especially from ashington through a lens of more and more hostile relationship. thatonsequence of that is people are neglecting the reasons why the u.s. and china are linked together in ways that
will be impossible to decouple. both parties have robust nuclear arsenals. if they should be dragged into a nobody cand-party, survive. so clearly, that is a vital interest. both live on a small globe in which everyone imaging greenhouse gases emitted them into the same biosphere we have a shared interest in trying to do something about that in fact,. when you think about the 2008,ial crisis of both the u.s. and china recognized they had a shared interest in preventing this becoming another great depression. i think the relationship needs to get balanced but an appreciation of the reasons why the two countries have to cooperate. at the same time, there are many reasons why they will find themselves competing and being rivals.
yvonne: you point out in your book that the chinese are strategically patient and comfortable waiting a long period of time to solve problems. how do you think they view the current dispute with america in the contest of its five, 10, or even 100-year development goals? >> very good point. the chinese can think long-term. for the u.s., fighting his long-term. so this makes for a symmetry that is significant here. atfar as i can read beijing this point, they are hoping that trump is an anomaly. but as they watch the whole washington political class, democrats as well as republicans now seeing china as a strategic adversary, they worry. there are still hoping that trump will be a single-term resident. if -- president. if that can happen, they think
maybe things can get back on track. but they have been going through a pretty substantial strategic assessment lately thinking this will last for some time. on the other hand, the china dream of making china great again is a dream for long period. plan reaches out to 2049. so one year, two years, they could adjusted in a way that americans are unwilling to do. the harvard was kennedy school professor of government graham allison speaking earlier on bloomberg tv. let's get a check of the headlines. rio tinto has warned that a flagship copper project in almost, $2uld cost billion more than forecast and faces potential delays of 2.5 years before reaching full production. the expansion of them -- the mine has had difficulties. development costs could not rise to around $7 billion.
-- a slowdown in equities amid an oversupply of fuel. ample supplies continue to weigh on sinopec margins. companies in the region are already planning to cut their over due to concerns global demand as the oil supply continues to slow. the san francisco jury had imposed more than $80 million in penalties for this company after he claims roundup causes cancer. that has now been cut to $25 million, with the judge saying punitive damages should not be more than nine times bigger than compensatory damages. david: these big words in a news, very hard for us. [laughter] here is another board for you. have a look at this first stock,
a big mover yesterday, plunging for a second day. negative guidance from the company. what does the company do again? yvonne: the donkey -- david: manufactures and sells t medicinetional chinese , with raw materials from donkeys. yvonne: they had a profit warning earlier this week, and it is down 5% of this week. david: morgan stanley cutting to equal weight. yvonne: the stock rallying on that, up more than 7%, brilliance china. and then, the last stock, a maker of circuit boards, zhending up close to 6% today. david: we are down 7.5% on features now, about one point
five hours away from the open of cash markets. we will be joined -- we are joined by a our next guest from mumbai. >> yesterday's session was interesting. the nifty 50 was single-handedly lifted higher by interest rates. dcs also chipped in. -- nifty bank was down. single-handedly, business has managed to prop up the index. the last few days have been 11,500,ange-bound -- 11,650 seems to be the new range traders are looking to play around. it will be interesting to see how i.t. stocks react in today's session. it will be focused on what happens to these private sector banks as most of their results are coming out today. yvonne: we are watching the mid-caps private banks, they
have started to report their earnings. how are the stoxx that to perform -- how are their stocks bet to perform? >> both of these stocks over the past few weeks has managed to see amount of documentation. they have seen investor participation driving them higher. both of them trading quite close to their 52-week high. yesterday's session did not do a lot much but also late, we have been seeing very strong reactions to stocks was results are announced, whether on the upside or the downside. federal banks are expected to do well, we will watch out for that. david: and we will be watching. thank you so much, from bloomberg quint, joining us from mumbai. coming up, it is time for the battle of the charts where our charts of theg us
function david lust talking about all the time. david: yeah, i kind of have to. very useful stuff. let's kick things off with wes. : everybody knows the federal reserve is about to cut interest rates, and that has resulted in a big decline in benchmark bond yields. that is already starting to show up in the economy. for my chart, the first part of the chart shows a big decline in mortgage costs. 30-year interest rates, mortgage interest rates about 3.8%, falling in line with yields, the lowest in a couple of years. the bottom half of the chart shows mortgage applications, the number of people seeking to take out a home loan at the bank are rising. so my chart shows that if you are looking for a home loan, the mortgage rates are as low as it has been in a couple of years. the transmission of monetary policy, and even the forecast
for what the fed is going to do actually affect a real economy. home.: time to buy a david: it is a most a rate cut from buyers, 100 basis points is a big boost to hustled incomes. absolutely, wes. we are in the market for a house, so we will check that out. helpful information. [laughter] next chart -- >> my chart is about the rising beverage bets against chinese equities -- rising bearish bets against chinese equities. the upper panel shows offshore-listed exchange trading funds, two of them, which would profit from the decline of the chinese benchmark indexes. you can tell that the inflows have jumped suddenly over the past few weeks, which hasn't happened for a while. one interesting thing is actually the white line showing theu.s.-listed bearish etf,
fastest-growing etf among all the funds checking chinese assets in the past month. inflows surge of happened last year, we could see the shanghai benchmark composite index actually touch new lows after the bearish bets spiked. david: do we know why? : i guess one thing is the earnings. we can see a lot of bad earnings especially on -- hurting sentiments. as well as uncertainty regarding the trade talks. we don't see the direction yet, and we are still waiting for the results. yvonne: ladies think -- i like them both. david: it is a tough one. yvonne: you have the fed meeting
coming up at the end of the month and already we are seeing movement would it comes to mortgage. i will have to go with jeanne today. what do you think? david: i don't like the message of jeanne's, they'll. it is a tie, i guess. much of vicious to both of you. [laughter] a good message from both. congratulations to both of you. congratulations,, jeanne, congratulations as well. something savage about the way you deliver the message. this is bloomberg. ♪ we're the slowskys.
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