Chinese Stocks Extend Rally on Politburo Pledges, US Sentiment | Bloomberg: The China Show 9/27/24

AVON: SHENZHEN AND SHANGHAI ARE WATCHING THE CHINA SHOW. I'M YVONNE MAN WITH ANNABELLE DROULERS. ANNABELLE: CHINA'S TOP LEADERSHIP RAMPING UP EFFORTS TO REVIVE GROWTH WITH PROMISES ON FISCAL SPENDING AND STOPPING THE HOUSING SLUMP. THE PBOC QUICKLY FOLLOWING THROUGH ON PROMISES. IVANKA: BEIJING --YVONNE: BEIJING PLEDGES TO SUPPORT GROWTH. ANNABELLE: JAPAN'S RULING PARTY ABOUT TO CHOOSE HIS NEW LEADER. WE WILL LOOK AT THE ECONOMIC AND GEOPOLITICAL CHALLENGES FACING THE NEXT PRIME MINISTER. IT'S YVONNE: WHAT A WEEK IT'S BEEN WHEN IT COMES TO CHINESE EQUITIES. TAKE A LOOK AT THE MILESTONES THAT HAVE BEEN REACHED. IT HAS BEEN

CRAZY FOR ALL OF US FROM THE PRESS BRIEFING THAT WE SAW EARLIER TO NOW THIS POLITBURO THAT SEEMS TO SUPERCHARGE MORE FISCAL STIMULUS. IS THIS CHINA RECOVERY FINALLY HERE, TAKE A LOOK AT WHAT WE SAW, CSI 300 IS HEADED FOR THE BEST WE CAN 10 YEARS. TALK ABOUT THE MARKET CAP IN THE MARKET. WHAT A DAY. ANNABELLE: YOU TALK ABOUT ONE POINT $4 TRILLION ADDED TO MAINLAND AND HONG KONG STOCKS OVER THE COURSE OF THE PAST FEW SESSIONS. IT'S REALLY BEEN SOMETHING FOR EVERYONE OUT OF THIS. YOU'VE HAD MEASURES TO SUPPORT THE PROPERTY SECTOR. YOU'VE

HAD THEM FOR THE STOCK MARKET. YOU'VE HAD THEM FOR CONSUMPTION. AS YOU SAY, THROWING THE KITCHEN SINK AT IT. IS THIS GOING TO BE ENOUGH? WE'VE SEEN THESE HEAD FAKES BEFORE, INVESTORS ARE BEING CAUGHT WRONGFOOTED, DOES IT HAPPEN AGAIN? YVONNE: HERE'S A MARKET CHECK BEFORE WE GET TO THAT. IT SEEMS LIKE WE ARE LIKELY TO EXTEND THE WALL STREET RALLY WITH THE 42ND RECORD FOR THE S&P ON THE U.S. SENTIMENT AND ON THIS CHINA STIMULUS AS WELL. ASIAN STOCKS ARE STILL HOVERING AROUND TWO-YEAR HIGHS. FLAT WHEN IT COMES TO THE BENCHMARK YEAR. U.S. FUTURES ALSO,

BUT YOU'RE TAKING A LOOK AT WHAT'S REALLY DRIVING THESE MARKETS, IT'S WHAT WE ARE SEEING WHEN IT COMES TO THE COMMODITY SIDE OF THINGS. WE"RE SEEING IRON ORE, I THINK WE ARE BACK WELL ABOVE 100 AND SINGAPORE FUTURES, STEEL IS CATCHING A BIT. COPPER IS ABOVE 10,000, BRENT IS ANOTHER STORY GIVEN WHAT WE SAW WITH THE REPORT TALKING MORE ABOUT HOW THEY MIGHT BE ABANDONING THAT 00 TARGET FOR OIL AS THEY TRY TO REGAIN SOME MARKET SHARE. DOLLAR-YEN HAS BEEN ON THE WEAKER FOOTING. WE HAVE SOFTER TOKYO CPI NUMBERS THIS MORNING, MAY BE ADDING THAT

NARRATIVE THE BOJ WILL NOT RUSH THINGS WHEN IT COMES TO THE NEXT HIKE. WE ARE WATCHING VERY CLOSELY THOSE NUMBERS ON THE TREASURY MARKET HERE RIGHT NOW. BUT TAIWAN COMING ONLINE SEEING FAVORABLE GAINS THIS MORNING. WE ARE WATCHING VERY CLOSELY WHAT HAPPENED OVERNIGHT BECAUSE YOU TAKE A LOOK AT THE NASDAQ AND GOLDEN DRAGON, IT WAS BULLISH. WE WERE TALKING ABOUT 11% GAINS. THAT'S FOR THE BENCHMARK ALONE. CERTAINLY THAT BODES WELL FOR THE OPENING HERE. TODAY THIS IS WHAT THE APPROACH LOOKS LIKE NOW WHEN IT COMES TO FUTURES. WE ARE WATCHING VERY CLOSELY HEDGE FUNDS. WE

HAVE THE HSI, HSTECH, H-SHARES BACK TO THOSE YEAR TO DATE HIGHS. THERE YOU GO, 2% GAINS ON CHINA FUTURES THIS MORNING. AND YIELDS ARE PICKING UP IN THE BOND MARKETS. YOU ARE SEEING THAT BIT OF ROTATION THERE. 213 FOR YOUR CHINESE 10 YEAR YIELD. GOING BACK BELOW SEVEN FOR CHINA -- DOLLAR CHINA. ANNABELLE: HEDGE FUND FLOWS OR SOMETHING THEY ARE TRACKING, PERHAPS THE KEY COMMENTARY YOU CAN GET MORE ON. WE HEARD FROM THE BILLIONAIRE INVESTOR, ONE OF THE MOST READ STORIES ON THE TERMINAL THIS MORNING SAYING HE'S BUYING EVERYTHING RELATED TO CHINA. SOMEONE WHO KEPT

WITH HIS CHINA POSITION, EVEN WHEN OTHERS WERE PESSIMISTIC EARLIER THIS YEAR. GOLDMAN SACHS, THEY ARE ALSO LOOKING AT THIS. MORGAN STANLEY SEEING THE CSI 300 RISING 10 PERCENT. VANGUARD SAYING WHAT WE'VE SEEN SO FAR AS THE START OF WHAT WILL BE MANY STEPS. YOU UNFIXED OF ONES TO WATCH AND YOU HAVE THAT OFFSHORE YUAN BELOW THE SEVEN MARK. INDUSTRIAL PROFITS. OF COURSE HOW MUCH IS THE STIMULUS SUPPORT COME UP AGAINST THE FUNDAMENTAL. WHAT WE REALLY SEE IN THE ECONOMY GOING ON, CONSUMPTION PROPERTY STOCKS OFF THE BACK OF THE MEASURES SO FAR. RELEASE NEW WORLD DEVELOPMENT,

SOMETHING CATCHING A LOT OF PEOPLE'S ATTENTION. YVONNE: WE WILL SEE HOW THEY REACT TO THE CEO STEPPING DOWN AND WHAT IT MEANS FOR DEVELOPERS. CHINA'S TOP LEADERS RAMPING UP EFFORTS TO REVIVE GROWTH TO SUPPORT FISCAL SPENDING, AND STABILIZE THE PROPERTY SECTOR AND GIVING NEW MOMENTUM TO THE STIMULUS MEASURES. LET'S GET OUR CHINA CORRESPONDENT, MINMIN LOW. THE FACT THAT WE HAD A POLITBURO MEETING IN SEPTEMBER, FIRST TIME IN SEPTEMBER WAS SOMETHING. MINMIN: IT'S A REALLY EXTRAORDINARY MEETING, THE TIMING OF IT, TYPICALLY THE TIME TO LOOK AT THE ECONOMY IS APRIL, JULY OR DECEMBER POLITBURO MEETINGS. THIS

IS THE FIRST TIME THEY DO THIS IN SEPTEMBER, IT SHOWS THE URGENCY THE GOVERNMENT HAS IN HANDLING THE ECONOMY. WHAT STOOD OUT AS THE TONE AROUND THE PROPERTY SECTOR. SAYING THAT THE MANDATE NOW IS TO STOP THE DECLINE. THAT IS A PHRASE THAT HAS NEVER BEEN USED BEFORE. I THINK IT'S A CLEAR SIGNAL THAT THE WINDOW FOR THIS IS OVER. THE MANDATE IS REALLY STOPPING THE DECLINE IN HOME PRICES, THE DECLINE IN HOME SALES THAT HAS BEEN GOING ON FOR FOUR YEARS. THEN IF YOU LOOK AT FISCAL POLICY, SAYING THAT THE GOVERNMENT WOULD STEP UP

SPENDING AS NECESSARY, THAT'S A LITTLE BIT VAGUE, BUT REUTERS IS REPORTING THE MINISTRY OF FINANCE IS PLANNING 2 TRILLION YUAN IN SPECIAL SOVEREIGN BONDS ISSUANCE. THAT'S A BIG STEP OUT IN OFF BUDGET FISCAL PUSH, HALF OF THAT THEY SAID IS GOING TO BE DEDICATED TO BOOSTING CONSUMPTION, HALF OF THAT WITH LOCAL GOVERNMENT DEBT, AND THEN MONETARY POLICY AS WELL. THE READOUT SAYING FORCEFUL IMPLEMENTATION OF THESE INTEREST RATE CUTS, HAS ALREADY BEEN FLESHED OUT BY THE PBOC, BUT IT'S THE WORDING, FORCEFUL IMPLEMENTATION, A DEPARTURE. THEY OMITTED THE WORD PRUDENCE, THE MONETARY POLICY. THE SAME THING WITH

FISCAL POLICY. THEY CARRY OUT PROACTIVE FISCAL POLICY. THEY DIDN'T USE THAT PHRASE THIS TIME AROUND. JUSTICE BACK TO BACK ANNOUNCEMENT. TUESDAY YOU HAD THE PBOC BRIEFING, THEN WEDNESDAY, THE MEASURE TO GIVE CASH HANDOUTS TO THE POOR. AND THEN 24 POINT GUIDELINE TO BOOST THE JOB MARKET AND THEN THERE IS A THAT POLITBURO MEETING COMING TOGETHER IN A COORDINATED MANNER IS BRINGING THE ANIMALS SPRING BACK INTO THE CHINESE MARKET. ANNABELLE: IT'S NO QUESTION POLICYMAKERS ARE PULLING OUT THE STOPS FOR THIS. A LOT OF PEOPLE ARE ASKING HOW SUSTAINABLE IS THE POLICY IMPACTS. MINMIN: I THINK IT'S

STILL MIXED. THEIR REACTIONS MEAN THAT CHINA IS ON TRACK WITH 5% GROWTH, WHICH IS THE POLITBURO VOWED TO DO BUT I HAS THE LIKES OF GOLDMAN SACHS HOLDING ONTO THEIR GROWTH FORECAST OF 7% SAYING THERE IS LIMITED UPSIDE RISK TO THEIR GROWTH FORECAST. HSBC SAYING THE TIDE HAS TURNED, BUT OTHERS SAYING THIS IS NOT A WHATEVER IT TAKES MOMENT, SO IS THIS A BAZOOKA OR NOT? IT REALLY DEPENDS ON THE IMPLEMENTATION OF THE COMING WEEKS AND MONTHS. WHEN IT COMES TO BOOSTING CONSUMPTION, FOR INSTANCE, WILL THAT LEAD TO A STRUCTURAL CHANGE IN TERMS OF PEOPLE'S

INCOME DISTRIBUTION. THE CONFIDENCE RETURNING TO THE PRIVATE SECTOR, AND EVEN FOR THE PROPERTY SECTOR, THAT READOUT MADE A NOTCH TO EXISTING SECTORS LIKE REMOVING HOMEBUYING CLUBS, CUTTING HOME MORTGAGE RATES. WILL THERE BE MORE? WILL THEY WIDEN THE USE OF LOCAL GOVERNMENT BONDS TO BUY UP THOSE. THE QUESTION WE STILL HAVE THE ANSWERS TO AND IT REALLY DEPENDS ON WHAT FOLLOWS THROUGH AND THE COMING WEEKS AND MONTHS. YVONNE: GREAT STUFF. MINMIN LOW, OUR CHINA CORRESPONDENT ON WHAT CAME OUT THIS WEEK AND IS IT GOING TO BE THE GAME CHANGER IS THE QUESTION YOU'RE ASKING. PERFECT GUEST

TO REALLY WRAP UP THIS WEEK FOR US. IS THIS THE KITCHEN SINK MOMENT FOR CHINA? >> ON THE FINANCIAL MONETARY POLICY SIDE, YES. ON THE FISCAL AND PROPERTY SIDE, WE NEED TO SEE. THE POLITBURO MEETING HAS A VERY ENCOURAGING MESSAGE, BUT REALLY, WHAT ARE THE NUMBERS ATTACHED TO THAT. WHAT ARE THE REAL POLICIES, HOW QUICKLY THOSE ARE BEING IMPLEMENTED. AND ALSO, IT'S ABOUT WHETHER THE POLICIES ARE MATCHING UP TO EXPECTATIONS. WHAT WE GOT IN THIS MARKET THIS WEEK IS PARTIALLY BECAUSE EXPECTATION WAS EXTREMELY LOW. VALUATION WAS LOW AND THEY CAME OUT WITH A BIG POSITIVE

SUPPLY. SURE, HEDGE FUNDS MOVE FAST. BUT AS MARKETS RALLY, EXPECTATIONS ARE BUILDING UP. WE NEED TO SEE EXPECTATIONS VERSUS WHAT THEY DELIVER, BUT I WANT TO EMPHASIZE EVEN ON THE MONETARY POLICY SIDE, IS VERY POWERFUL, IT'S A VERY ACCEPTABLE TIME WHERE PBOC ACTUALLY ENCOURAGES THE FINANCIAL INSTITUTION INCLUDING BANKS TO GET EXPOSURE AND LEVERAGE IN THE EQUITY MARKET. SO, DO NOT FIGHT AGAINST THE CENTRAL BANK FOR THE SHORTER RALLY. ANNABELLE: ON THE MONETARY SIDE IT SEEMS LIKE PEOPLE'S EXPECTATIONS, TO YOUR POINT, HAVE BEEN EXCEEDED. THE FISCAL SIDE IS WHAT'S REALLY LACKING RIGHT NOW. SO WHAT MORE

IS NEEDED AND WHAT WILL BE ENOUGH TO MAYBE EVEN EXCEED PEOPLE'S EXPECTATIONS ONCE AGAIN? >> IF WE THINK BACK IN THE ECONOMY WHAT'S MISSING, WE ARE MISSING RISK APPETITE. WE ARE MISSING JOBS, WE ARE MISSING OPTIMISM ON INCOME, GROWTH AND OUTLOOK. BECAUSE FOR THE PAST FEW YEARS, A LOT OF EMPHASIS HAS BEEN PLACED ON DELEVERAGING, DE-RISKING AND HIGH CORRUPTION, A LOT OF THOSE ARE CONTRACTIONARY AND ABOUT AUSTERITY, BUT WITH ECONOMIC WEAKNESS WE NEED MORE EXPANSIONARY POLICY, WE NEED RISK ON NOT ONLY FOR THE STOCK MARKET, BUT ALSO FOR THE REAL ECONOMY. SO SOMEBODY HAS TO

GO OUT THERE, BORROW, INVEST, CREATE JOBS, AND HER RATE CUTS ITSELF COULD NOT ACHIEVE THAT. WE SAW JAPAN, 20 YEARS OF ZERO RATES AFTER THE SESSION. WHEN THE ECONOMY IS BAD, RATE CUTS DON'T CREATE SUCH DEMAND FOR FISCAL POLICY POTENTIALLY DO. IF YOU THINK ABOUT THE DIFFERENT ENTITIES IN THE ECONOMY, GOVERNMENT CORPORATE HOUSEHOLD. HOUSEHOLD YOU CAN'T BET ON THEM TO ADD LEVERAGE WHEN INCOME JOB OUTLOOK IS STILL NOT TURNED AROUND YET. ENTERPRISES, PRIVATE SECTOR IS THE LAGGING INDICATOR. THEY WON'T LEAD TO THE DOWNTURN. AS WE GET TOO MANY KPIS. THE ANSWER TO BUYBACKS. SO CAN

THEY REALLY LOVE HER UP A LOT, I'M NOT SURE. SO THAT LEAVES US WITH THE GOVERNMENT SECTOR. ESPECIALLY WITH THE LOCAL GOVERNMENT TO STEP UP. YVONNE: THIS USED TO BE A MARKET THAT WAS ANYTHING BUT CHINA, BUT NOW WE FLIP THE SWITCH. HOW QUICKLY -- HOW SUSTAINABLE IS THIS? ARE THEY CHASING THIS RALLY? >> HEDGE FUND SENTIMENT CHANGES BY THE HOUR. DEPENDING ON THE NEWS FLOW IN THE MARKET MOVEMENT. I THINK FOR SUSTAINABILITY, A LOT OF PEOPLE HELP OUT. THE FACT THAT MARKETS MOVE QUICKLY, IT'S VERY HARD FOR A. WE SEE SOME BEHAVIOR, BUT NOT

WHICH SUCH CONVICTION. PEOPLE ARE BUYING OPTIONS, SO THE INDEX FUTURES, FOR THE RALLY TO SUSTAIN, IS SUSTAINABLE. I WOULD SAY VALUATION PERSPECTIVE. THE VALUATION HOPES THAT IT'S SLIGHTLY BELOW 10 TIMES. SO IT'S OPENING HIGH IN FEBRUARY 2023 IT WAS 12 TIMES. BUT THERE'S A 20% UPSET PURELY ON VALUATION. THUS THE TECH PLANE BUT AT THIS TIME WE ARE REALLY SEEING A BIG POLICY AND WE COULD POTENTIALLY EXCEED THE PREVIOUS VALUATION CAP BECAUSE IF YOU LOOK OUT LONGER-TERM IS TRADING 16 TIMES. THE OTHER THING TO WATCH, EXTERNAL FACTORS, THE GEOPOLITICAL RISK DOES NOT GO AWAY. AND

WITH THE UPCOMING U.S. ELECTION IN NOVEMBER, THAT IS CERTAINLY SOME RISK PEOPLE NEED TO WATCH. I THINK FOR THE NEXT FEW WEEKS, CHINA PROBABLY CAN HAVE MORE ROOM TO GROW. VALUATION IS NOT STRETCHED AND MORE POLICY FOLLOWS THROUGH. BUT, IN A MONTHS TIME WE PROBABLY NEED TO REEVALUATE. ANNABELLE: YOU HAVE THAT MONETARY POLICY COMING THROUGH, THEY ALWAYS OPERATE WITH A LAG. AND THEN YOU HAVE THIS OPERATION NOW, HOW SOON DO YOU RUN INTO THE SAME PROBLEMS ONCE AGAIN? >> ONE OF THE DIFFERENCES THIS TIME VERSUS THE PREVIOUS ROUND WAS PREVIOUS ROUND IN THE MAY 17

POLICY PACKAGE WAS FOCUSED ON POLICY AND TURNAROUND TAKES A LONG TIME. EVEN TURNING AROUND THE ECONOMY PROBABLY TAKES SEVERAL QUARTERS. BUT THIS TIME, THE NEW POLICIES ARE FOCUSING ON STOCK MARKET, LIKE PBOC FACILITY, THE REAL ENDING PROGRAM. THOSE CAN COME RELATIVELY SOON AND THEY CAN SHOW THE EFFECT ON THE STOCK MARKET RELATIVELY SOON. SO WE NEED TO SEE WHAT I HAS ON FINANCIAL MARKETS AND CORPORATE EARNINGS. YVONNE: WE SEEN JAPAN DO SOMETHING LIKE THIS WHERE THEY BOUGHT OFF ETF'S. IT DID NOT DO MUCH FOR THE ECONOMY. DO YOU THINK THAT FACILITY HAS ANY SORT OF

FOLLOW-THROUGH? >> ECONOMIES FACE A LOT OF PROBLEMS, RIGHT. BUT SOFT MARKET IS NOT THE ANSWER. BUT YOU HAVE TO START SOMEWHERE. AND AT LEAST CREATE POSITIVE WEALTH ON SOME RETAIL INVESTORS. AT LEAST CREATE SOME SORT OF RISK APPETITE, CREATE SOME SORT OF OPTIMISM, THAT'S IMPORTANT. AND THAT'S THE MORE QUICK RATE YOU CAN ACHIEVE. IF YOU BET ON PROPERTY MARKET TURNAROUND, YOU MIGHT NEED TO WAIT FOR A LONG TIME. I WOULD SAY STOCK MARKET IS NOT THE SOLUTION BUT IT'S A QUICK ONE. IMPORTANTLY, YOU NEED TO FOLLOW UP WITH MORE FISCAL REFORMS. ANNABELLE: WE WILL HAVE

MORE WITH CHIEF EQUITY STRATEGISTS. STILL AHEAD, ANOTHER BIG INTERVIEW COMING UP WITH THE TOKYO ELECTRON CEO AND ITS ASIA EXPANSION PLAN. THIS AS WE KNOW THE U.S. IS STEPPING UP THEIR PRESSURE TO CURB ITS CHIP BUSINESS IN CHINA. WE ARE COUNTING DOWN TO THE OPENING OF TRADE IN SHANGHAI, SHENZHEN, HONG KONG AND FUTURES ARE TELLING US IT WILL BE ANOTHER VERY POSITIVE DAY IN THE GREEN. MORE AHEAD. THIS IS THE CHINA SHOW. ANNABELLE: RECAPPING THE YUAN SIX. THE YUAN REFERENCE RATE COMING IN AT 70101 PER DOLLAR. THE ESTIMATE HAD BEEN FIRST 70111. THE STRONGEST ONE

ACTUALLY WE'VE SEEN OVER THE COURSE OF 2024, THE OFFSHORE YUAN WERE ALREADY BELOW THAT SEVEN LEVEL SO FAR. IT HAS RISEN 3.6 PERCENT THIS JULY LOW AGAINST THE U.S. DOLLAR. AGAIN, IT'S THE MIX AND YOU HAVE THE FED EASING CYCLE KICKING OFF IN CHINA STEPPING UP THESE EFFORTS TO SUPPORT THE ECONOMY. YVONNE: YOU SAID A LOT OF THINGS LIKE TURNOVER AND WE WERE TALKING AND TRACKING THIS. SO, OVER 100 BILLION DOLLARS IN TURNOVER, SO IT JUST GOES TO SHOW HOW ACTIVE THINGS WERE. IT'S A ONE TRILLION RENMINBI FOR TWO DAYS, WHICH IS THE FIRST TIME

WE HAVE SEEN SINCE MAY. SO THAT USUALLY IS A PRETTY BULLISH SIGNAL AS WELL. WE MENTIONED ABOUT DAVID TEPPER, WE HAVE TO TALK ABOUT WITH MORGAN STANLEY IS SAYING. SHE ALONE WITH WINNIE WU IS SAYING WE COULD SEE NEAR-TERM UPSIDE, THEY ARE SAYING MAY BE 10%, BUT REALLY COMES DOWN TO THE SPEED, THE PACE, AS WELL AS THE EXECUTION AND SCALE OF THE POLICY OVER THE NEXT FEW MONTHS. TO SUSTAIN THE RALLY THEY SAY THEY NEED TO PROVIDE DETAIL ON THE UTILITIES, LENDING PROGRAM BY MID-OCTOBER. ANY SORT OF FOLLOW-THROUGH WITHIN THE NEXT MONTH COULD DISAPPOINT

THE INVESTORS AGAIN. ANNABELLE: REALLY SO MUCH OPTIMISM IN THAT BIG QUESTION ABOUT HOW LONG DOES IT STAY IN PLACE GIVEN WE DO HAVE CONCERNS THAT HAVE NOT BEEN ON THE FISCAL FRONT SO FAR AND MORE MARKETS ABOUT THE SUSTAINABILITY. LET'S BRING BACK CHIEF EQUITY STRATEGISTS OF BANK OF AMERICA SECURITIES. WE WANT TO TALK ABOUT HOW YOU INVEST IN THIS ENVIRONMENT AS WELL, WHAT ARE THE SHORT -- SORTS OF STRATEGIES YOU ARE THINKING ABOUT? >> DEPENDING ON WHAT KIND OF INVESTOR YOU ARE, IF YOU CAN MOVE VERY FAST WITH THE CHASE BANK PAST, IT'S A CHEAP

MARKET, LARGE CAP LIQUID STOCKS, INTERNET FINANCIALS, SOME OF THE CONSUMERS, SOME OF THE TECH NAMES. TRADE THE DATA IS THE WAY TO PLAY THE SHORT-TERM RALLY IF YOU CAN GET IN AND OUT REALLY FAST. EVEN SOME OF THE HIGH DATA PROPERTY BEINGS. THE RALLY, WE GOT MORE PROPERTY BANKS THAT WENT UP 3, 4 TIMES WITHIN THE LAST MONTH, BUT THEN THEY GAVE UP ALL THOSE GAINS IN THE FOLLOWING FOUR MONTHS. IF YOU HAVE THE LIQUIDITY, IF YOU HAVE THE RISK APPETITE, YOU CAN GET IT ALL VERY FAST. INVESTORS WANT TO GET MORE DEFENSIVE, THEY LOOK

AT A BUY-AND-HOLD STRATEGY WE STILL SAY HIGH-YIELD IS A GOOD PLACE TO BE BECAUSE SOME OF THE PBOC'S PROGRAM, THE FOCUS ON BUYBACK, IT'S STILL ABOUT TOTAL SHAREHOLDER RETURN. SO, DOMESTICALLY, I'M SURE INVESTORS ARE SAYING YOU CAN ACTUALLY DO THIS. BORROWING FROM PBOC LENDING FACILITY AT 2.25 PERCENT. BUY BACK YOUR OWN HIGH-YIELD DIVIDEND STOCK WITH FOUR TO 5% YIELD, WHY NOT. HIGH YIELD COULD SOON BE A PRETTY GOOD STRATEGY. AS WE DISCUSSED BEFORE, IT'S ABOUT THE BIG NEWS BUT ALSO CERTAINTY OF THE YIELD. BEFORE LONGER-TERM INVESTOR, I THINK THE MARKET DOESN'T GO IN A STRAIGHT

LINE. SO SOME OF THESE CORRECTIONS IN THE COMING WEEKS OR MONTHS SHOULD BE A BUYING OPPORTUNITY. WE SPEND MORE TIME LOOKING AT CHINA BECAUSE EVEN IF THIS IS NOT THE REAL FUNDAMENTAL TURNAROUND, IT COULD BE A PRELUDE TO SOME REAL STRUCTURAL CHANGES. YVONNE: HOLD THAT THOUGHT, MEET PAT -- WE HAVE WARPED -- MORE LINES. THEY ARE CUTTING TODAY FROM 1.85 TO 1.65%. THE BASIS POINT CUT. THEY CAME IN PRETTY QUICKLY AFTER ANNOUNCING ALL THIS MONETARY STIMULUS. THOSE RRR CUTS AND WHAT WE HEARD EARLIER THIS WEEK ARE EFFECTIVE STARTING TODAY AS WELL. WINNIE WILL, YOU MENTIONED

DANCING TO THIS MUSIC. YOU MENTIONED WE ARE ALWAYS IN THAT DEFENSIVE PLAY PEOPLE ARE RELYING ON. ARE YOU SAYING NOW THAT THIS RALLY COULD SPREAD QUITE MORE BROADLY? >> FOR THE VERY SHORT-TERM WE ARE SEEING THAT ALREADY. ON TUESDAY MY REPORT STILL SAID, ON THE HIGH YIELD THAN AVOID CONSUMER PROPERTIES, BUT THINGS CHANGED SO FAST. AND NEWS ABOUT SOME LOCAL CONSUMPTION IN SHANGHAI, THE CONSUMERS AND PROPERTIES ARE MOVING VERY FAST. SO CURRENTLY IT IS PURELY FOR SHORT-TERM BETA RALLY, I THINK THE MARK -- THE MARKET RALLY IS IMPROVING. YVONNE: CHINESE EQUITY STRATEGISTS. I JUST WANT

TO MARK NEW WORLD DEVELOPMENT JUST RESUMING TRADE TODAY AFTER WHAT WE HEARD FROM THE NEWS THERE THAT ADRIAN CHANG CEO IS STEPPING DOWN AFTER TALKING ABOUT SADDLED WITH DEBT, THE LOSS OF THE PROFIT WARNINGS. UPSIDE 16% FOR THE DEVELOPERS HERE THIS MORNING. WE TAKE A LOOK AT THE PREMARKET IN HONG KONG. WE TALK ABOUT HOW WE ARE CONTINUING ON TO SEE THOSE HERE TODAY HEIGHTS WHEN IT COMES A HONG KONG RELATED STOCKS. PREMARKET THEY ARE UP MORE THAN TWO POINT 5%. IN YIELDS CONTINUING TO TICK HIGHER IN CGBS. PLENTY MORE AHEAD. THIS IS BLOOMBERG. ANNABELLE:

TAKING A QUICK CHECK ON THE PREMARKET. FOUR MINUTES AWAY FROM THE START OF TRADING FROM CASH MARKETS MAINLAND CHINA AND HONG KONG. YOU CAN SEE THAT POSITIVITY ON THE SCREEN IN FRONT OF YOU. PLENTY OF GREEN FOLLOWING THOSE BIG GAINS WE HAVE ON THE GOLDEN DRAGON INDEX OVERNIGHT. HONG KONG NOT JUST A STORY OR THE CHINA POLICY MEASURES. THAT'S THE MOST PART BUT YOU CANNOT DISCOUNT THAT OPTIMISM WE HAD IN THE U.S. SESSION OVERNIGHT. THE S&P 500, IT YET ANOTHER RECORD. NEW WORLD DEVELOPMENT, ONE OF THE STOCKS WE WATCH CLOSELY HERE. WE SAW ADRIAN CHANG

STEPPING DOWN AS CEO FROM THE COMPANY. THE QUESTION REALLY OVER HOW MUCH LONGER DOES IT TAKE TO FIX THE CHALLENGES FACING HIS COMPANY HEAVILY LADEN BY DEBT, RESTORING STABILITY, SOMETHING THAT COULD POSSIBLY TAKE YEARS. THAT'S A FINAL PICTURE. MORE AHEAD WITH THE OPEN. YVONNE: WATCHING THE CHINA SHOW. THE GOOD TIMES KEEP COMING. AS WE WRAP UP A HISTORIC WEEK FOR MARKETS IN CHINA WE ARE TALKING ABOUT THE CSI 300. THE BEST WEEK IN A DECADE. AND REALLY YOU ARE STARTING TO SEE THE CONSUMPTION, THE LAGGARDS THAT ARE STILL WINNING THIS MORNING ALONG WITH THE PROPERTY

STORIES. THE MENTION OF FISCAL POLICY, THOUGH A LACK DETAIL, MANY SAY WAS CRUCIAL AND NEEDED TO KEEP THE RALLY GOING. ANNABELLE: WE HAVE BEEN DISCUSSING THE MONETARY POLICY SIDE IS MAKING AN ANSWER BUT IT'S A FISCAL POLICY SIDE THAT INVESTORS STILL WANT MORE ANSWERS ON AND MORE CLARITY AROUND HOW THEY CAN TRY TO BOOST CONSUMPTION, WHICH IS REALLY ONE OF THE KEY STICKING POINTS FOR THE CHINESE ECONOMY. THIS IS THE START OF TRADERS THAT WE HAVE FOR THE CSI. WHAT A START TO THE DAY. YOU HAVE THE CSI 300 TRADING UP 2% SO FAR. THINK

ABOUT THE CONTEXT OF HOW WE CAME INTO THIS TRADING SESSION. THE GOLDEN DRAGON WAS 11% UP OVERNIGHT. HUGE GAINS FOR CHINESE STOCKS THAT ARE LISTED ON WALL STREET. TAKE A LOOK AT THE CONSUMER PLAYS IN MORE DETAIL. YOU HAVE THE LIKES OF THEM TRADING NEARLY 4.5% TO THE UPSIDE. 2% HIGHER IN THE GREEN TODAY. YOU SEE THAT TURNAROUND FOR THE COMMODITY STORY. COPPER, IRON ORE, BOTH OF THESE ARE GAINING THE CONTRACTS YOU SEE. JUST THAT LEVEL OF OPTIMISM WE SEE ACOSTA SCREEN. EVEN IF IT'S CONCERNS THAT IT MIGHT NOT LAST TOO LONG. LET'S TAKE A

LOOK AT HOW HONG KONG IS FARING SO FAR THIS MORNING. THAT POSITIVITY JUST BEING ECHOED ACROSS THE HANG SENG, THE MSCI CHINA INDEX. HANG SENG TECH INDEX, ALL TRADING A YEAR TO DATE HIGHS. EVERY SINGLE SQUARE IS GREEN. THERE'S NOT MUCH POSITIVITY COMING ACROSS MARKETS. LIKES OF ALIBABA. MATES 1, 7 .7% UPSIDE THAT'S COMING ACROSS SO FAR. DRILL DOWN, TAKE A LOOK AT THE MOVERS IN MORE DETAIL. CONSUMPTION STOCKS ARE DOING THE SAME. FISCAL POLICY SUPPORT. COULD THAT BE TARGETED AT BOOSTING CONSUMPTION, THAT'S THE HOPE OF MANY. LOTS OF THESE PLAYERS HERE ARE MOVING TO

THE UPSIDE HERE. WE SEE A DAIRY STOCKS. WE HAD A PUSH FROM THE GOVERNMENT TO TRY TO PUSH -- BOOST MILK CONSUMPTION. THAT'S COMING ACROSS. PROPERTY STOCKS, WE SAW THOSE EFFORTS TO TRY TO STABILIZE THE PROPERTY SECTOR. THE LANGUAGE WAS VERY FORCEFUL COMING THROUGH FROM THE POLITBURO MEETING. USING THE BIG GAINS TODAY FOR PROPERTY STOCKS SO FAR. JUST A QUICK CHECK, DIFFERENT STORY BUT NEW WORLD DEVELOPMENT. VERY WELL-KNOWN PROPERTY STOCK IN HONG KONG. WE HAVE THE CEO STEPPING DOWN. VERY SIGNIFICANT FOR PEOPLE WHO AREN'T FAMILIAR WITH HOW PROPERTY COMPANIES ARE STRUCTURED. ADRIAN CHANG IS SOMEONE

WHO IS REALLY SEEN AS AT HEIR APPARENT. AND AS WE KNOW FROM THE SUCCESSION TALK THAT GOT UNDERWAY LAST YEAR, HE HASN'T BEEN CHOSEN AS THAT SUCCESSOR. YVONNE: AND SEEMS TO BE RELIEVED FROM INVESTORS THE FACT THAT WE HAVE SEEN THIS SIZABLE MANAGEMENT CHANGE FROM THE DEVELOPER. TAKE A LOOK AT THE NUMBERS CROSSING YOUR BLOOMBERG. IT'S A WEAK PRINT FROM THE PRIOR, BUT NO ONE CARES RIGHT NOW. TAKE A LOOK AT THAT. 0.5% YEAR TO DATE. QUITE A BIT OF A SLOWING FROM THE 3.6% THAT WE SAW PREVIOUSLY. THIS IS DATED AT THIS POINT. TAKE

A LOOK AT HOW THE DOLLAR CHINA IS. 69930 ONE. STILL A LOT OF QUESTIONS FOR HOW LONG IT CAN RUN WITH THIS DOLLAR CHINA'S STORY WHERE WE CONTINUE TO SEE IS A MOSTLY THE DOLLAR WEAKNESS STORY OR A CHANGING THAT WE CONTINUE TO SEE THIS RENMINBI STRENGTH EAR. YIELDS 212 FOR YOUR CHINESE 10 YEAR YIELD. HOW ABOUT THE 30 YIELD IN THE MOMENT. WE SAW THAT RISING ABOVE -- BELOW THE JGB YIELD AT THE 30 YEAR. WHICH GOES TO SHOW THERE IS THAT SENSE OF -- GOING ON IN THESE CHINESE BOND MARKETS. CSI 300 ARE

HAVING A GREAT DAY TODAY AS WELL. ANNABELLE: I THINK IT'S A BIG QUESTION BECAUSE YOU SEE A MESSAGE TOLD IN THE BOND SPACE WHERE INVESTORS ARE CONCERNED ABOUT THE ECONOMY VERSUS THAT OPTIMISM THAT'S COMING HERE IN THE EQUITY SPACE WHERE EVERYONE IS FOCUSING ON THE STIMULUS MEASURES. LET'S GET MORE I'M BACK AND BRING BACK CHINA EQUITY STRATEGIST AT BANK OF AMERICA SECURITIES. WHO SHOULD WE LISTEN TO, BOND INVESTORS ARE EQUITY TRADERS? >> THE FUNNY THING I HEARD IS THAT IT MIGHT HAVE BEEN HAPPENING IN CHINA BUT GIVEN THE CHINA SPEED, WHAT TOOK JAPAN 30 YEARS

TO GO THROUGH MIGHT ONLY TAKE CHINA THREE YEARS. IN A WELL IT'S AT THE END OF IT. SERIOUSLY, I THINK EQUITY MARKETS AND FUNDAMENTALS WILL PROBABLY CONTINUE TO DEVIATE. FRONT FUNDAMENTAL TURNAROUND CONSUMER CONFIDENCE WILL TAKE MUCH LONGER. PROBABLY SEVERAL MORE QUARTERS. BUT NONETHELESS, STOCK MARKET IS ABOUT EARNINGS AND MULTIPLE AND CURRENTLY WE SEE THE MULTIPLE RE-RATING PARTLY BECAUSE THE RISK OF THREE RATE, U.S. RATE IS GOING FORWARD AND THE EQUITY RATES GIVE PREMIUM PEOPLE PLACE ON CHINA, WHICH PREVIOUSLY INVOLVED A LOT OF CONCERN ON POLICY, THAT'S ALSO GETTING LOWER. EARNING RECOVERY WILL TAKE MUCH LONGER

TO HAPPEN, WE ARE ENJOYING THE MULTIPLE RE-RAKING. YVONNE: THE VALUATION ALONE, WHEN CAN WE SEE EARNINGS THEM VOLATILE IN TERMS OF DOWNGRADES? >> THERE AT HALF THIS YEAR, FOR STAFF NEXT YEAR. I WOULD GUESS IT WOULD PROBABLY TAKE SOMETHING LIKE NINE TO 12 MONTHS. ALSO, EXPORT MANUFACTURING, WHICH WAS A PRETTY STRONG JULY FOR THE ECONOMY THIS YEAR. NEXT YEAR WE WILL PROBABLY FACE MORE CHALLENGES. TARIFFS, CONSUMPTIONS, ECONOMIES. WE HAVE TO MANAGE INVESTORS EXPECTATIONS OF EARNINGS FUN. ANNABELLE: WHAT'S YOUR SENSE AROUND THE U.S. ELECTION, HOW DO YOU C TRADING ACTIVITY BEING INFLUENCED BY THAT OVER THE

COMING FEW WEEKS? >> I THINK IF BY NOVEMBER THE RISK OF TRADE WAR TARIFFS ARE GOING TO BE MUCH HIGHER AS THE RESULTS OF THE ELECTION. IT COULD LEAD TO PEOPLE'S FEAR ABOUT THE ESCALATION IN THE TRADE WAR AND THE MARKETS WOULD BE OF. TO WAIT FOR WHAT ARE THE NEW POLICIES COMING OUT. YVONNE: WE TALK ABOUT THE CSI 300. YOU SAID THIS RALLY LOOKS LIKE WHAT WE SAW 10 YEARS AGO, WHICH WAS A VERY LIQUIDITY DRIVEN RALLY. WHAT ARE THE SIMILARITIES AND DIFFERENCES? >> IN OCTOBER LAST YEAR WE HAD A REPORT AND IT COMPARED

CHINA'S MARKET AND THE ECONOMY NOW TO EXACTLY 10 YEARS AGO. HE SAID BASICALLY, THE ECONOMY IS TRYING TO GO THROUGH A CRITICAL REBALANCING AND DOING SOME OF THE OLD ECONOMIC DRIVERS BEING FADED OUT, BUT THE NEW ECONOMIC DRIVERS ARE NOT THERE YET AND IT'S FRUSTRATING FOR THE MARKET. WHAT HAPPENED? WE HAD TWO CRITICAL POLICIES. THE BENCHMARK LENDING RATE AT THAT TIME BUT ALSO AN ANNOUNCEMENT OF LOCAL GOVERNMENT DEBT. THAT'S THE INITIAL LACK OF THE RALLY FOLLOWING THAT. IT WAS LEVERAGING THE H-SHARE MARKET. MARGIN FINANCING, SHADOW BANKING. NOW AGAIN, PURE LIQUIDITY LEVERS TO THE RALLY AND

HEALTHY AND SUSTAINABLE. WE DON'T REALLY WANT THAT, BUT, NONETHELESS IT LASTED NINE MONTHS IN CSI 300 MORE THAN DOUBLED. SO FOR MANY SHORT-TERM INVESTORS, I WANT TO REMIND PEOPLE THE UPSIDE RISK IN THIS RALLY BECAUSE POTENTIALLY THIS IS THE FIRST TIME IN 10 YEARS THAT THE FINANCIAL REGULATORS ENCOURAGING BANKS TO GET INCREASE LEVERAGE IN THE STOCK MARKET. SO A LEVERAGE DRIVEN RALLY COULD BE VERY POWERFUL. ANNABELLE: I WONDER ON THE EFFECTIVENESS OF POLICY. PUSHING THROUGH THIS RRR CUT TO DECREASE THE AMOUNT FREEING UP CASH FOR BANKS. YOU'VE ALSO GOT THE STORY THAT BLOOMBERG WAITED CAPITAL

INGESTING. IT HAS A BEING SO WEAK FROM HOUSEHOLDS FROM CORPORATE'S. HOW DOES THAT STACK UP FROM WHAT THE PBOC IS TRYING TO DO? >> FIRST, THEY ARE GIVING OUT A LOT OF PLANS ON EVERYTHING. RRR, LPR, MORTGAGE, BANK RECAPITALIZATION, STOCK MARKET, SOME WILL BE MORE EFFECTIVE. SOME WILL BE OF LOWER PRIORITY URGENCY. THEIR BANK RECAPITALIZATION, IN MY PERSPECTIVE, IS PROBABLY NOT REALLY URGENT OR OF HIGHER PRICE PRIORITY. IF THEY GOT ONE TRILLION, IT SHOULD BE BETTER USED IN TERMS OF GROWING DEMAND. WHAT IS GIVEN TO HOUSEHOLD THE USEFUL PROPERTY WHERE CREDIT DEMAND CAPITALIZES BANKS AND

THE RISK IS BANKS GOT STUCK WITH EXCESS CAPITAL AND LAZY BALANCE SHEET. YVONNE: GREAT TO HAVE YOU HERE FOR THE FIRST 40 MINUTES OF THE SHOW. CHINA EQUITY STRATEGIST. HOPE YOU STILL GET A HOLIDAY FOR GOLDEN WEEK. IT'S BEEN A BUSY ONE FOR EVERYONE. A LOOK AT HOW HSI'S DOING AND WE SEE GAINS IN TERMS OF ALL THE SECTORS EXCEPT FOR THE BOTTOM, WHICH IS TELCOS AND ENERGIES. THEY ARE NOT TAKING MORE IN THIS RALLY, BUT TOP OF THE BOARD, IT IS THE CONSUMPTION OF CONSUMER STAPLES CATCHING A MASSIVE BID AS WELL AS DISCRETIONARY HERE

THIS MORNING. ANNABELLE: COMING UP, MORE ON THE BOND MARKET, WHAT WE SEE IN CHINA'S DEBT SPACE. MORE ON THAT AHEAD. THIS IS BLOOMBERG. ♪ YVONNE: YOU START TO SEE A CONTINUATION OF THIS MELT UP IN CGB YIELDS. THE TWO-YEAR YIELDS UP ABOUT FIVE BASIS POINTS. 212 FOR YOUR CHINESE TENURE YIELD. THE YES, IT GOES TO SHOW THAT MAYBE WE COULD CONTINUE TO SEE THIS ROTATION DID OUT OF BOUNDS. YOU HAVE A LOT OF ANALYST SCRATCHING THEIR HEADS FROM TALKING ABOUT MASSIVE MONETARY POLICY, DOESN'T MEAN IT WILL TAKE LOWER FROM NOW ON? THERE STILL IS THAT

CHANCE OF THE TENURE TO BREAK BELOW 2%. ANNABELLE: IT'S GETTING A COMPARISON, WHAT'S HAPPENING IN CHINA, HOW DOES THAT COMPARE TO WHAT WE SAW IN JAPAN AND THE RECESSION, THE FEARS THAT HAVE BEEN AROUND THAT FOR MONTHS IN CHINA THAT HAVEN'T BEEN ASSUAGED YET. ING IS SAYING CHINA'S LATEST BUNCH OF STIMULUS MEASURES IS NOT GOING TO BE ENOUGH TO DETER THE DEMAND FOR BONDS AND IT STILL SEEN THEM MONEY FLOWING BACK INTO THEM INSTEAD. YVONNE: DESPITE YIELDS PICKING UP, THE LONG END OF THE CURVE IN CHINA, YOU ARE STILL SEEING THIS DEMAND FOR BONDS IN

THE LONG END OF THE CURVE. YOU TAKE A LOOK AT HOW THE REST OF THE EQUITY MARKET IS GOING, CERTAINLY THAT HAS A LOT WITH THE DYNAMICS. TALK US THROUGH A EVERYONE IS TRYING TO TALK ABOUT THE STIMULUS, IS THIS THE WHATEVER IT TAKES A MOMENT? OH HEAD OF REGIONAL FIXED INCOME AT MAYBANK ASSET MANAGEMENT. OBVIOUSLY IT'S BEEN A HUGE WEEK. I'M JUST WONDERING, WOULD SET OUT TO YOU AS ONE OF THE BIGGEST TAKEAWAYS? >> FOR ME, THE BIGGEST ONE IS GETTING THE RMB ONE. SO HELPING THE FAMILIES IS ONE OF THE BIGGER THINGS. FOR

ME, IT IS VERY IMPORTANT BECAUSE BANKS ARE NOT LENDING BECAUSE OF THE CAPITAL RATIO. THOSE TWO ARE THE MOST IMPORTANT FACTOR. WHAT'S MOST IMPORTANT IS THE PROPERTY SECTOR. THEY ARE NOT GOING TO REALLY SIT . SO I THINK THEY'RE LOOKING FOR THE FINAL PACKAGE. OVERALL, STABILIZING THE PROPERTY SECTOR, CAPITALIZING THE BANK -- ACTUALLY THE CONTENT IS VERY POOR. SO FINALLY I DO BELIEVE IN ALL THESE FACTORS FROM A MEDIUM-TERM PERSPECTIVE. IT'S A CONSUMPTION BASED ECONOMY, SO I THINK IT'S THE KEY OF LOWER AND MIDDLE INCOME FAMILIES. ANNABELLE: THOSE MEASURES TO TRY TO BENEFIT CONSUMPTION, HOW

DOES THAT THEN FACTOR INTO YOUR OUTLOOK TOWARDS THE CHINESE ECONOMY AND ARE YOU CHANGING YOUR STRATEGY AROUND CHINESE CREDIT IN THE OFFSHORE YUAN AS A RESULT? >> OVER THE LAST NINE MONTHS I HAVE BEEN SKEPTICAL OF THE ECONOMY BUT I THINK THE FISCAL POLICY MONETARY EASING IS TRYING TO DO THE RIGHT THING FROM A MEDIUM-TERM PERSPECTIVE. I ALSO LIKE SOME OF THE CHINESE BECAUSE THERE IS NOT ENOUGH SUPPLIES SO I THINK THEY ENCOURAGE THE COMPANY TO DO WELL OVER THE MEDIUM TERM. WE HAVE THE U.S. ELECTION, SO THE MEDIUM IS CHINA'S PLAN TO ACTUALLY INCREASE

USE EMPLOYMENT. I THINK THAT WAS A KEY FACTOR FOR MEDIUM-TERM PERSPECTIVE TO BE BULLISH. YOU MAY SEE SOME VOLATILITY. AND WE KNOW THAT WHEN THEY COME TO POWER. EVENTUALLY THOUGH THE ECONOMY CAN BE IMPACTED, FROM A MEDIAN PERSPECTIVE, CHINA CONTINUES TO INCREASE CONSUMPTION BY HELPING THE LOWER AND MIDDLE INCOME TRACK. AND YOU CONTINUE TO FOLLOW FISCAL AND MONETARY. YVONNE: IS IT ENOUGH TO AT LEAST STOP SOME OF THESE STRUCTURAL ISSUES. THE DEFLATIONARY ONE WE SEE, DO YOU THINK THAT THESE FISCAL MEASURES WILL BE ENOUGH TO CHANGE THAT, OR WHAT WE'RE SEEING RIGHT NOW IS PURELY

A TACTICAL REBOUND? >> DEFINITELY A TACTICAL REBOUND. BUT I FEEL THAT IT TAKES TIME FOR AN ECONOMY TO GO THROUGH THESE STRUCTURAL PROBLEMS. THE FIRST TIME THIS TO BUILD UP THE YOUTH EMPLOYMENT. IT'S A KEY FOR ME. WE ARE DOING THE RIGHT THING BUT WE HAVE TO CONTINUE TO DO THIS OVER THE NEXT 2-3 YEARS. IT SHOULD BE PART OF THE MEDIUM-TERM. ANNABELLE: WE WERE JUST TALKING EARLIER ABOUT THE YIELD ON CHINA'S 30 YEAR GOVERNMENT BOND, IT STILL LOOKING TO TEST ITS EQUIVALENT OVER IN JAPAN. AGAIN, IT SEEMS LIKE THERE'S THAT PESSIMISM AROUND THE LONGER

TERM OUTLOOK FOR CHINA'S ECONOMY, DO YOU SEE THAT BEING SUSTAINED? WHAT'S YOUR VIEW ON WHAT WE SEE? >> I'M EXPECTING IT TO STEEPEN ACROSS THE BOARD. I DON'T EXPECT CHINA TO GO TO JAPAN. FOR CHINA, IT'S ALL BUILDING SENTIMENT AND I THINK IT MAY TAKE SOME TIME BECAUSE WE HAD IT. BASICALLY HE WAS FOCUSING THE ECONOMY, BUT IT WOULD TAKE SOME TIME. FROM A MEDIUM-TERM PERSPECTIVE WHAT COMES OUT OF THE PACKET SHOULD DO THAT. I DON'T THINK IT SHOULD BE A BD OF TURBINE. YVONNE: DO YOU SEE MORE UPSIDE WHEN IT COMES TO CGB YIELDS?

QUOTE RUSS -- >> I THINK 2% TO 4% GOING FORWARD. I DON'T SEE A DROPPING BELOW THE 2% FOR 10 YEAR BOND. ANNABELLE: HOW IS THE OPTIMISM AROUND CHINA'S ECONOMY OF WHAT YOU ARE SEEING FEEDING INTO YOUR ASSUMPTIONS YOU'RE MAKING AROUND OTHER ASIAN GOVERNMENT BONDS? >> DEFINITELY I HAVE BEEN VERY BULLISH ON SOUTHEAST ASIAN CURRENCIES. INDONESIAN GOVERNMENT BONDS AND EVEN SINGAPORE GOVERNMENT BONDS. SINGAPORE BEING A FISCAL ONE IN THE COUNTRY. YESTERDAY WAS AT 2.62. I BELIEVE IT COULD GO BACK TO 2.3, TWO POINT TWO. SINGAPORE GOVERNMENT BONDS. IN THE CURRENCY APPRECIATION IN INDONESIA. I THINK

FED RATE CUTS ARE IN BETWEEN MARKETS. FOR THE FIRST TIME IT'S COMING BACK FURTHER MARKET. ITS CURRENCY APPRECIATION. YVONNE: THE FED IS A BIG FACTOR IN A WHILE WEEK -- WHY WE'RE SEEING THIS. WHAT ASSUMPTIONS ARE YOU MAKING OF THE FED NOW THAT AFTER THIS BIG MOVE OF THE START OF THE EASING CYCLE, SHOULD WE STILL RULE OUT THE POSSIBILITY OF ANOTHER 50 BASIS POINT CUT, OR ARE WE LIKELY TO SEE MORE AGGRESSIVE EASING MOVING FORWARD? KWUEX IT WAS OK YESTERDAY BUT MARKETS ARE FINALLY SLOWING DOWN. BUT IT'S A 25 BASIS POINT CUT. BUT IT'S

ONLY ABOUT 75 BASIS POINTS. SO MARKETS ARE THINKING ABOUT 100 BASIS POINTS. I'M NOT EXPECTING A 50 BASIS POINT CUT AND LESS STARTS ON THE DOWNSIDE. BUT IT'S ABOUT 25 BASIS POINTS. BUT THE RATE CUTS HAVE BEEN ON THE DIFFERENCES START NARROWING DOWN. YVONNE: COHEAD OF REGIONAL FIXED INCOME. PLENTY MORE AHEAD. THIS IS BLOOMBERG. ♪ YVONNE: WE CONTINUE TO WATCH FOR MORE COMMENTARY FROM WHAT WE GOT FROM CHINA POLICYMAKERS. ARE WE SEEING MEANINGFUL STRUCTURAL CHANGE, THAT CERTAINLY IS A LOT OF QUESTIONS. I THINK SHE TALKED ABOUT, LOOK, THINGS ARE LOOKING BETTER. THANK YOU LOU, ALSO

HERE THIS WEEK. ON THE FACT THAT THEY SAID THEY MENTIONED EVEN ABOUT FISCAL POLICY, THE FACT THAT THEY ARE TALKING ABOUT SPENDING MORE SPECIAL BOND ISSUANCE IS A LIGHT. WE DIDN'T GET THE DETAILS, BUT THAT MAY MEAN THAT THEY MAY HAVE TO RAISE THE DEFICIT BEFORE YEAR END. WHAT ARE YOUR COMMENTARY? >> WHAT STOOD OUT TO ME IS THE VIEW FROM MORGAN STANLEY BECAUSE SAYING IT'S NOT OR WHATEVER IT TAKES MOMENT IS INTERESTING BUT IT DOES POINT TO THAT BIG QUESTION MARK OF WHAT'S HANGING OVER ALL OF THIS. THE MONETARY POLICY SIDE, WHEN YOU SAID

BEFORE THIS IS REALLY UNPRECEDENTED AND VERY IMPRESSIVE AND COMING THROUGH. WHEN THEY SAY'S FISCAL STIMULUS MEASURES, WHAT DO THEY ACTUALLY MEAN. WHAT SUPPORT WILL IT PROVIDE TO THE ECONOMY. THIS HOPES THAT WE WILL STILL SEE MORE STEPS. YVONNE: FISCAL POLICY SIDE IS VAGUE. THE FACT THAT THEY STOP DECLINE ON PROPERTY IS IN AN EXPLICIT ONE. IT'S SHORT WITH 1200 WORDS. USUALLY THEY ARE DOUBLE, 2500. SHORT AND CONCISE AND FORCEFUL, DARING AS SOME SAY AS WELL. HANG SAYING, MSCI CHINA ALL UP FROM 2%. VOLATILITY SLIGHTLY HIGHER THIS MORNING AND WE ARE SEEING COMMODITIES LIKE IRON ORE

FLYING FROM 3.5% ONCE AGAIN. A LOT MORE ON THE WAY. YOU'RE WATCHING THE CHINA SHOW. YVONNE: WHAT'S GOING AROUND IN SOCIAL MEDIA CIRCLES AND CHINESE TO BE A, B, C, ANYTHING BUT CHINA. NOW WE ARE TALKING ABOUT A ALL IN. WE ARE GETTING CLOSE TO THAT BEST WEEK SINCE 2008 WITH THE CSI 300. WE ARE ALSO COMING TO 10 YEAR HIGHS AND 16 YEAR HIGHS FOR THAT BENCHMARK AS WELL. AND JUST A COORDINATED POLICY RESPONSE WE GOT AT THE POLITBURO MEETING. IT'S WHAT PEOPLE PAY. IT'S A CARTEL STIMULUS BY AN IT'S REALLY GIVING ANY THOUGHT

ABOUT WHETHER IT'S A REGIME CHANGE. ANNABELLE: YOU BRING THE PBOC TOGETHER WITH THE FINANCIAL, WITH THE STOCK MARKET REGULATORS, SECURITY REGULATORS. YOU ADD IN A POLITBURO MEETING ON TOP OF IT. AND CERTAINLY A MELTING POT OF DIFFERENT STIMULUS CONDITIONS THAT HAVE COME THROUGH. IT REALLY SEEMS TO BE SOMETHING IN IT FOR A LOT OF DIFFERENT CORNERS OF THE MARKET OVER THE COURSE OF THIS WEEK. AND WE HAVE SEEN THAT REALLY SIGNIFICANT REBOUND OFF THE BACK. YES, THERE ARE QUESTION MARKS OVER THE SUSTAINABILITY OF IT, LACK OF CLARITY AROUND FISCAL MEASURES. SO FAR ALL THOSE HINTS

THAT WE COULD SEE MORE FISCAL SUPPORT ON THE WAY. BUT CERTAINLY, EVEN IF BOND INVESTORS ARE CONCERNED ABOUT THE HEALTH OF THE CHINESE ECONOMY, STOCK INVESTORS ARE REALLY CHEERING WHAT'S BEEN HEARD SO FAR. YOU'VE GOT THE LIKES OF CASH TRADING UP 4.4%. THE EXPLICIT SUPPORT WE CAME -- WE SAW COMING THROUGH FROM DAIRY CONSUMPTION. THAT'S A STATE OF PLAY FOR THE MAJOR CONSUMER STOCKS THERE. THE LET'S TAKE A START OF HOW CHINA HAS BEEN OUTPERFORMING GLOBAL STOCKS AS WELL. OUTPACING THE GAINS FOR GLOBAL STOCKS THE MOST SINCE 2022. IT'S NOT LIKE GLOBAL STOCKS HAVE BEEN

UNDERPERFORMING. WE SAW THE S&P 500 HAVING ONE OF ITS BEST DAYS, LAUNCHING A NEW RECORD OVERNIGHT. THERE'S A LOT OF OPTIMISM. IT SPARKED OFF BY THE FED RATE CUT IN THE EASING THAT PLAYS INTO THE STIMULUS MEASURES RECEIVED FROM CHINA. LET'S TALK ABOUT HOW ASIA X CHINA'S PERFORMING OF THE SESSION. THE KOSPI, ALL THESE ARE LARGELY SITTING FLAT SO FAR. WE DO SEE GAINING TODAY WITH THAT VERY POSITIVE BACKDROP. YVONNE: IT'S BASICALLY SAYING BASED ON THE VALUATION ALONE, THIS MARKET IN CHINA CAN RALLY SOME 20%. SO YOU MIGHT BE SEEING THAT RE-RATING WHEN IT COMES

TO VALUATIONS. IT TAKES SOME TIME FOR EARNINGS AND DOWNGRADES TO BOTTOM OUT. SHE IS AND MAYBE A FEW MORE MONTHS OR SO. LAURA WANG HAD A SIMILAR VIEW. IF WE DON'T SEE THE SWIFT FOLLOW-THROUGH ON THESE PLEDGES, MARKETS COULD BE DISAPPOINTED AGAIN. WE SAW THAT LEADING UP TO MANY BIG HOLIDAYS LIKE THE ONE WE ARE ABOUT TO GET TO TWO GOLDEN WEEK. WE COME BACK ON MOST OCCASIONS, DISAPPOINTMENT WHERE THINGS START TO PETER OUT FROM HERE AS WELL. MORGAN STANLEY THINGS 10% OF THE NEAR TERM COULD BE THE BASE CASE HERE. LET'S RING AND SENIOR

REPORTER FOR EQUITIES. HOLDING YOUR HAND THROUGH THIS WHOLE JOURNEY. JUST WALK US THROUGH THE WEEK THAT WE HAD. FOR CHINA AND FOR THE WORLD NOW. >> IT'S BEEN A GREAT WEEK FOR CHINA EQUITIES AND ANYTHING RELATED TO CHINA EQUITIES. SO TO ASIA AND COMMODITIES. THIS IS POSSIBLY THE START OF THE END OF CHINA SHUNNING TRADE. WITH STANDARD CHARTERED AND THE AUNT SAY BUILD CANCELLATION. THIS MEANS A LOT OF EXPECTATIONS OF INVESTORS HAVE BEEN MET. WE HAVE SEEN THE RATE CUTS ON A BARRAGE OF STIMULUS COMING IN THROUGH CENTRAL BANK. AND NOW THE POLITBURO WILL KEEP

SUPPORTING THE ECONOMY. FISCAL SPENDING, MORE MEASURES ARE ON THE END. THAT'S THE EXPECTATION. THIS IS THE TIME WHEN YOU DON'T HAVE TO DEBATE WHETHER IT'S TECHNICAL OR STRUCTURAL. IF YOU ARE NOT POSITION, YOU ARE ACTUALLY MISS OUT ON THE RALLY. THIS RALLY LOOKS TO HAVE LEGS, AS YOU LIKE. A LOT OF BELLWETHERS OF STARTED RISING. THE BURKE IT IS TRADING AT DIED TIDES. THE ONLY THING THAT WE NEED TO WATCH AS FOLLOW-THROUGH, DETAILS, PLANNING, ACTIONS, HOW THAT HAPPENS. I THINK WE MIGHT, AND BECAUSE ALL THESE MEASURES HAVE BEEN ANNOUNCED JUST AHEAD OF A LONG HOLIDAY,

I THINK IT MIGHT ALSO BENEFIT THAT WE SEE THE IMPACT OF THESE OF HOW THEY STARTED SPENDING AFTER THE HOLIDAY AND SEE WHAT THEY DO ON PROPERTY SIDE. THE MARKET IS LOOKING WAY MORE ATTRACTIVE. THIS IS REALLY THE END OF CHINA SHUNNING TRADE. ANNABELLE: WHAT TELLS YOU THIS IS DIFFERENT FROM THE OTHER TIMES THIS YEAR WHERE WE HAVE SEEN OPTIMISM AND INVESTORS HAVE BEEN CAUGHT WRONGFOOTED? IS IT THE DEPTH OF THE MEASURES, WILL KIND OF UPSET ARE YOU SEEING? >> YOU'VE NEVER SEEN SOMETHING LIKE THIS BEEN IN THE POLITBURO MEETING. IT'S WAY MORE THAN TACTICAL

BELTS. EP'S CAN TAKE A BIT OF TIME AS THESE STIMULUS MEASURES TRICKLE IN. YOU WON'T SEE MSI CHINA TRADING AT NYMEX. THAT'S WHAT STRATEGISTS ARE TELLING US. WHEN A VALUE OF MEASURES ARE COMING, IT'S REALLY ARGUING WHAT IS THE DURATION OF THIS BOUNDS. THEN MANY OUT THERE WERE STILL COMPARING CHINA TO THE -- OF THE CHINA ECONOMY, ETC. CYCLES GET SHORTER. WE HAVE SEEN JAPAN. THAT WILL NOT BE THE CASE FOR CHINA. IF ANYBODY KNOWS THE LESSONS THAT THE WORLD HAS LEARNED FROM JAPAN, IT NOW BECOMES KIND OF THE LOOK BACK. WHAT HAPPENED? WE ARE

HERE NOW AND IT'S ALSO BECAUSE JAPAN DOES COMING OUT OF PROBLEMS OR DEFLATION. IT'S NOT JUST BECAUSE CHINA WAS GOING THERE. IT LOOKS VERY MUCH TO A LOT OF INVESTORS THAT CHINA MAY START COMMANDING RESPECT IN PORTFOLIOS. AT LEAST ON ASIA'S SIDE, SEEING THIS AS A MARKET WHICH CAN PROVIDE DIVERSIFICATION AT A TIME WHEN INDIA IS TURNING TO THE EVANS TRADING AT WHATEVER VALUATION THEY ARE TRADING AT. AND IF YOU LOOK AT THE RECENT DATA YOU GOING TO BANK OF AMERICA AND ANY SURVEY, ASIAN FUND MANAGERS BEFORE THE MEASURES HAD ALL WAITED ON CHINA STOCKS.

THE CONFIDENCE HAS STARTED COMING IN AND THAT'S WHAT WAS MISSING. MARKETS ARE MADE BY INVESTORS. INVESTORS MAY PRICES IN THE PRICES TELLING US THAT THIS IS DIFFERENT THAN WHAT WE REVERSE DURING THE REOPENING. SO HOPEFULLY YOU DON'T EVEN NEED MORE LEGS. MARC: THAT WAS SARAH -- ANNABELLE: THAT WAS OUR SENIOR REPORTER FOR EQUITIES. IN BRING OUT OUR SENIOR ECONOMIST. IT'S CLEAR THAT OPTIMISM AROUND CHINA'S MEASURES HAVE BEEN ANNOUNCED THIS WEEK. WE JUST HEARD ABOUT HOW THE ECONOMY CAN AVOID THAT BALANCE SHEET RECESSION. IT'S INCREDIBLE WHEN YOU STACK IT UP AGAINST WHAT WE HAD JUST A

FEW WEEKS AGO AND WHAT WE WERE HEARING. EVERYBODY TALKED ABOUT IT BEING THE GARBAGE TIME OF CHINA'S ECONOMY. IT'S JUST BEEN SO FAST, THAT SHIFT TO OPTIMISM. ARE WE RIGHT TO KEEP THAT LEVEL OF OPTIMISM? >> YOU COULD SEE HOW QUICKLY SENTIMENT CAN TURN. IT MAY TAKE A DECADE FOR NIKKEI TO COME BACK. IT'S TOOK ONLY THREE DAYS FOR CSI TO COME BACK. SO I THINK A KEY DIFFERENCE IS, YOU SEE HOW POLICY SHIFTS CAN MAKE SUCH A HUGE DIFFERENCE IN CHINA BECAUSE -- EVEN IF YOU INCLUDE MONETARY POLICY AND FISCAL POLICY, CHINA HAS LOTS

OF OTHER POLICY REGULATIONS IT CAN MANEUVER TO CHANGE THE MARKET SENTIMENT. I THINK THAT THE KEY DIFFERENCE. THE INITIAL RALLY IS MORE ON THE EXPECTATION. BUT FOR US WE WANT TO SEE MORE EVIDENCE FOR HOW THEY CAN TURN THE ECONOMY. BUT THAT WILL BE SO SOON BECAUSE WE HAVE SEEN SOME RALLY BEFORE LIKE CHINA REOPEN FROM COVID A COUPLE OF YEARS AGO. THE MARKET REALIZE IT WAS AN ACTIVITY. I THINK THIS TIME WE NEED TO SEE MORE POLICY FOLLOW-THROUGH. ESPECIALLY HOW THEY ARE GOING TO FIX THE HOUSING MARKET. BC THE DEMAND SIDE AND STIMULUS. IT'S

NOT REALLY WORKING TO STABILIZE THE MARKET. MORE OPTIMISTIC ON THIS TIME ABOUT TURNING AROUND TURNING POINT FOR CHINA. YVONNE: WHAT ARE YOU EXPECTING IN TERMS OF FISCAL POLICY? WE WANT TO STOP THE DECLINE, BUT THEY FAILED TO TALK ABOUT NUMBERS OF WHAT IS IT ALL MEAN. SHOULD WE ASSUME THAT THIS BUDGET DEFICIT COULD WIDEN BY YEAR END? WE HAD THE NEWS YESTERDAY THAT THEY ARE GOING TO ISSUE MORE SPECIAL GOVERNMENT DEBTS. I THINK THAT'S THE MORE POSSIBLE WAY. I THINK ALSO WE NOTED YESTERDAY THERE WAS CASH TO THE VERY CORE GROUP. IT'S NOT REALLY TO

MOVE THE DIAL. YOU CAN HAVE THE PROGRAM WITH THE LOW INCOME GROUPS IS USING THE NEW FISCAL SPECIAL BOUNDS. I THINK THAT'S ALSO A BOOST TO CONSUMPTION TO REALLY VERY WEAK CONSUMPTION AND DRAGGING DEFLATION. ANNABELLE: THAT'S SOMETHING THAT WOULD FALL INTO THE WELFARISM BASKET THAT PRESIDENT XI THOUGHT TO AVOID. I WONDER WHAT YOU MAKE OF THE POLICY MEASURES THAT HAVE BEEN ANNOUNCED. WHERE THEY THINK ANY OF THEM ARE DOING SOMETHING TO TRY AND FIX THE STRUCTURAL PROBLEMS OR WHETHER THEY END UP ENHANCING THEM. >> I THINK IT'S COMPLICATED BECAUSE IT'S CYCLICAL STRUCTURAL AND SOMETIMES THEY

ARE CONTRADICTING WITH EACH OTHER. YOU CAME IN FIXING THEM AT THE SAME TIME. AT LEAST THEY WANT TO FOCUS MORE ON CYCLICAL AND THE NEAR TERM. IN FOR STRUCTURAL THINGS, I THINK THEY ALREADY HAVE A BLUEPRINT IN THE JULY ONE. IT WAS PROBABLY LATER IN A GRADUAL WAY, BUT FOR NOW, THE PRIORITY IS THEY WANT TO FIX THE NEAR-TERM GROWTH PROBLEM. YVONNE: ERIC ON WHAT HE SAID IT WAS DATA FOR MONETARY POLICY. WE WILL TALK MORE ON THE CHINESE ECONOMY AND THE PROPERTY SECTOR AND GET YOU MORE OF A MARKET CHECK WHERE WE CONTINUE TO

SEE -- HERE'S LAST FIVE DAYS DEVELOPERS HAVE BEEN UP MORE THAN 30% ON THESE PLEDGES TO STOP THE DECLINE IN THE REAL ESTATE MARKET. THIS IS BLOOMBERG. ♪ YVONNE: PROPERTY STOCKS, ANOTHER DAY OF GAINS. IT SEEMS LIKE THE BETA PLAYS. YOU CAN EVEN CHASE CONSUMER AND PROPERTY JUST GIVEN THE NEWS THAT WE GOT THIS WEEK FOR A SHORT TIME -- SHORT-TERM HORIZON FOR INVESTORS. YOU SEE IT LAYING UP SOME 4%. CHINA ABSENT A PERCENT. ALL IN ALL, THIS WEEK WE SEE 30% GAINS FROM BLOOMBERG DEVELOPERS INDEX. LET'S GET MORE. EXPECTING THE SUPPORT FOLLOWING THESE POLITBURO

PLEDGES. LET'S BRING IN OUR REAL ESTATE ANALYST. THERE'S A DEFINITE SHIFT IN TONE ON PROPERTY FOR WHAT WE SAW YESTERDAY AND THIS. WHAT DIFFERENCE DO YOU THINK IT WILL MAKE THIS TIME AROUND? QUAKES IN THE POLITBURO, YOU SAW PLANS ON FORCEFUL RATE CUTS, AND ALSO DETERMINATION TO STOP THE HOUSING SLUMP IN CHINA. AND I THINK YOU CAN ALREADY SENSE AUTHORITIES ARE GETTING MORE DESPERATE. THERE'S GREAT DETERMINATION TO PROTECT THE PROPERTY SECTOR IN CHINA. WE ARE MORE THAN THREE YEARS INTO A CRISIS. IN A WAY THAT MAKES OF CONFIDENCE IS ALREADY DONE, AND THERE ARE ALREADY

DEEP STRUCTURAL CHALLENGES. I THINK WE ARE STILL LACKING AMMUNITION TO ADDRESS THE MANY ISSUES FOR CHINA'S HOUSING WORLD. COMING UP FROM HERE THERE'S NO FIX QUICK TO THE PROBLEM. WE NEED TO FOLLOW THROUGH ON POLICY TO ADDRESS ISSUES LIKE ON HOME PRICES, IT EASING THE HOUSE SEEING SLUMP IN CHINA AND FIXING THE ISSUES. IT'S A STEP IN THE RIGHT DIRECTION, BUT I DON'T THINK OF SOMETHING THAT CAN BE FIXED OVERNIGHT. ANNABELLE: WE ARE NOT GREAT IN SEPTEMBER I'M HEADING INTO THE PEAK BUYING SEASON IN OCTOBER, SO WHAT SORT OF MEASURES DO YOU THINK WE COULD

EXPECT FURTHER ON THE POLICY FOR AN IN THE COMING WEEKS? >> IN THE COMING DAYS AND WEEKS, EXPECT A FRESH WAVE OF POLICY SUPPORT FROM CHINESE CITIES. I THINK IT'S ALSO TIMING FOR THE GOLDEN WEEK AS FAR AS THE REST OF OCTOBER, SEPTEMBER AND OCTOBER USED TO BE THE PEAK OF CHINA SALES. AND IF YOU LOOK AT PRELIMINARY DATA FOR SEPTEMBER, HALF OF SEPTEMBER HOME SALES ARE DOWN 30% YEAR-OVER-YEAR. THAT’'S NOT GOOD NEWS. THAT ALSO EXPLAINS THE TIMING OF THE STIMULUS PUSH AND MEASURE, AND HOPEFULLY THE GOVERNMENT'S CHANGING SHIFT IN TONES AND THAT POLICY SUPPORT

COULD HELP WITH THE HOMELESS. ANNABELLE: LET'S CHECK ON SHARES OF NEW WHOLE DEVELOPMENT BECAUSE THERE'S BEEN A VERY BIG ANNOUNCEMENT. THE STOCK RISING AS MUCH AS 16% IN GAINING A 20% AFTER ADRIAN CHANG RESIGNED FOLLOWING THE COMPANY'S FIRST ANNUAL LOSS IN TWO DECADES. LET'S RING AND PATRICK LONG, APAC REAL ESTATE SENIOR ANALYST AND HEAD OF BLOOMBERG INTELLIGENCE FOR HONG KONG. PATRICK, THIS IS THE COMPANY THAT'S FACING VERY SIGNIFICANT STRUCTURAL ISSUES. HOW MUCH IS ADRIAN CHANG STANDING BY REALLY GOING TO CHANGE THE TRAJECTORY AND THE OUTLOOK OF THE COMPANY FROM HERE? >> THAT'S A PRETTY INTERESTING

ONE, THE FAMILY HOME, WHERE THE MANAGEMENT IS THERE AND THEY WILL MAKE SURE THERE IS SOME HOPE. AS IT EXPLAINS, WHAT WE SEE IS THE LEVERAGE RATES ARE SO HIGH IN ITS 92 PERCENT OVER EQUITY RATIO. SO THERE IS THE INCREASE. AT SOME POINT IT WILL ALLOW THEM TO RECEIVE A -- WHERE THEY ARE BACK WITH THE PARENTS. IT'S ALSO A POSITIVE CLAIM IF IT WOULD LOWER THEIR THE INCREASE OF LIQUIDITY. YVONNE: THAT LEVERAGE RATIO IN THESE EARNINGS CONTINUE TO INCREASE. WE CONTINUED -- WE COULD COMPARE TO OTHERS. WHAT ARE THOSE THAT ARE GOING TO

BE THE KEY ISSUES? >> OVER THE PAST DECADE YOU HAVE SEEN THEY APOLOGIZE MORE AND MORE. YOU SEE ME DOING WELL. WE HAVE -- COMING FROM THE AIRPORT AND IS STILL ONGOING. ALSO GETTING QUITE INNOVATIVE -- QUITE A BIT OF CAP FIX. WHEN THE INTEREST RATE IS LOW LEVEL, IT'S OK. BUT WHEN IT'S GOING HIGHER AND HIGHER OVER THE PAST FEW YEARS, THEY FACE A CHALLENGE. ANNABELLE: WE SAW THOSE BETS RESULT IN A $20 BILLION HONG KONG LOSS IN THE LATEST RESULTS. I WONDER, GIVEN WE ARE APPROACHING OR JUST KICKED OFF THAT FED EASING CYCLE,

DOES THAT IMPACT THE BUSINESS OUTLOOK, AND CAN IT MAY BE HELP A FASTER TURNAROUND INTO NEXT YEAR? >> THAT'S TRUE, FUND RATE, IT'S HAPPENING NEXT YEAR. WE SEE THE COMMERCIAL MARKET WHERE IT IS DECLINING. WITH THAT, AND COULD ALSO HAVE SOME OF THE ASSETS. WE CAN EVEN COMPILE MEASURES IF THEY WANT TO. AND ALSO FOR THE NEW WORLD DEVELOPMENT, THEY HAVE THE NEW PROJECTS IN MAINLAND CHINA. SO HOPEFULLY THEY WILL BE IN THE GREATER BAY AREA, WHICH IS WHERE PEOPLE COULD DO BETTER THAN OTHER REGIONS. YVONNE: SEEMS TO BE LIKE A NEW WORLD FOR A

NEW WORLD. SO RARE TO SEE SOMEONE THAT'S NOT FROM THE FAMILY TAKEOVER. WE WILL SEE HOW HE TAKES THE DEVELOPER PATRICK LONG, APAC DEVELOPER SENIOR ANALYST AHEAD OF BLOOMBERG INTELLIGENCE HERE IN HONG KONG. YOU CAN GET INSIDER TO THE MONEY AND PEOPLE SHAKING THINGS UP IN OUR HONG KONG EDITION NEWSLETTER. HE COULD SIGN UP FOR THE WEBSITE , BLOOMBERG.COM/NEWSLETTERS. THIS IS BLOOMBERG. ANNABELLE: IN LUXURY STOCKS HAVE BEEN ON AN ABSOLUTE TERROR. IT SAID STORY AROUND CHINA STIMULUS ON THE MEASURES THAT COULD BE THERE TO TRY TO BOOST CONSUMPTION. FOR INSTANCE, YOU HAVE IT UP NEARLY

5%. SAMSONITE NEARLY 8%. EVEN CHAT GAIN NEARLY ONE PERCENT HERE. AGAIN, IT'S THAT STORY. BIG CHINA STIMULUS IS REALLY BEING TARGETED. PERHAPS THE FISCAL SIDE COULD END UP TRYING TO BOOST CONSUMPTION'S IN THE MAINLAND ECONOMY. YVONNE: THIS IS SOMETHING THAT HAS GLOBAL IMPLICATIONS, ESPECIALLY WHEN IT COMES TO EUROPE AND THE EXPOSURES SOME HAVE TO THE AIMS TO CHINA. YOU LOOK UP BERNARD ARNAULT. HE CERTAINLY IS SMILING AFTER WE'VE BEEN SEEING IT THIS WEEK. THIS IS THE LVMH HEAD. WE'RE TALKING ABOUT 7 BILLION WAS THE DEBT OR -- NETWORK ON THURSDAY. NOW 201 BILLION MAY BECOME

THE FOURTH. THEY ARE HERE WITH US. SHARES OF LVMH'S 10%. ANNABELLE: HE ENTERED THE DAY HAVING LOTS MORE WEALTH THIS YEAR THAN ANY OTHER BILLIONAIRE. MORE WEALTH THAN ANY OTHER BILLIONAIRE, AND THEN HE GOT THAT SURGE WHERE THEY'RE GREEN LIGHT TO SUPER CHERRIES STIMULUS IN CHINA. OF THE BACK OF THAT HE ZOOMED UP THE RICH RANKINGS AND BACK IN FOR POSITION. STILL DOWN $7 BILLION ON THE YEAR, BUT A LOT BETTER IF YOU ARE COUNTING IN THE BILLIONS, THE 24 BILLION LOSS. YVONNE: WHAT DOES THIS MEAN FOR THE CONSUMPTION STORY. IT WAS A GREEN LIGHT

TO BUY -- WHETHER IT IS. LOOK AT TRAVEL, LOOK AT DAIRY, LOOK AT DEAR STOCKS, THIS IS THE MOVE AND MOMENTUM IN THIS MARKET. WE ARE NOW TALKING ABOUT THE HANG SENG. THE BEST WEEK IS 1998 AS A COUNTDOWN TO THIS GOLDEN WEEK HOLIDAY IN CHINA. >> 11:29 A.M. IN TOKYO. HEADING FOR THE LUNCH BREAK IN A MOMENT. THE TOPIX IS LOWER BY .8%. THE DOLLAR-YEN IS ON A WEAKER FOOTING, NOT HELPING STOCK THIS MORNING, BACK TO 1.45 LEVELS. OF COURSE, IT MIGHT BE BECAUSE WE ARE COUNTING DOWN TO THIS LDP ELECTION OR LEADERSHIP POLL

THAT IS HAPPENING LATER ON TODAY AND IT MIGHT BE ONE OF THE HARDEST CALL IN DECADES, GIVEN THERE IS A RECORD NINE CANDIDATES VYING FOR THAT PRIME MINISTER JOB. SO CERTAINLY THIS ONE IS ONE TO WATCH LATER ON THIS MORNING. >> MOVING TO THE U.S. ELECTION NOW IN THE LATEST BLOOMBERG MIN MORNING CONCERT POLLS SUGGEST KAMALA HARRIS IS WRITING HER GAP OVER DONALD TRUMP AND SEVEN KEY SWING STATES. BILL, THEY WERE REALLY TWO KEY ISSUES THAT KAMALA HARRIS NEEDED TO NAIL THE MESSAGING ON. THE ECONOMY, THE IMMIGRATION. HOW HAS BSHE BEEN FARING ON BOTH OF

THOSE FRONTS? BILL: AS SOON AS SHE TOOK OVER AS A LEADING THAT CANDIDATE FOR THE DEMOCRATS, THOSE WERE HIGHLIGHTED AS THE TWO BIGGEST WEAKNESSES SHE HAD A RELATIVE TO DONALD TRUMP BUT THE LATEST BLOOMBERG MORNING CONSULT POLL SHOWS THAT SHE HAS EFFECTIVELY BEEN CHIPPING AWAY AT DONALD TRUMP'S LEAD WHEN IT COMES TO VOTERS CONFIDENCE ABOUT WHO WOULD HANDLE THE ECONOMY BETTER. DONALD TRUMP HAD A WIDE MARGIN OVER JOE BIDEN WHEN HE WAS IN THE RACE AND EVEN JUST A COUPLE WEEKS AGO, WAS SIX POINTS OVER KAMALA HARRIS AND THAT SHE SEEM TO HAVE CHIPPED IT

AWAY TO 4%, BUT THEN IN SOME SPECIFIC AREAS, WHEN YOU ASK PEOPLE DETAILED QUESTIONS ABOUT THE ECONOMY, SHE COMES OUT AHEAD. SO, IF YOU TALK TO PEOPLE ABOUT WHO WOULD BETTER HANDLE THE STOCK MARKET, DONALD TRUMP WINS ON THAT FRONT. IF YOU TALK ABOUT PERSONAL DEBT AND CREDIT CARD DEBT, THOSE KINDS OF THINGS, KAMALA HARRIS COMES OUT ON TOP THERE. SHE'S CHIPPING AWAY AT THIS AND MORE BROADLY WHAT YOU SEE THROUGH THIS OPLLOVER THE WEEKS-- THIS POLL OVER THE WEEKS IS SHE SEEMS TO BE BUILDING A VERY SMALL BUT CONTINUING LEAD OVER TRUMP STILL WITHIN

THE MARGIN OF ERROR, WHICH SHOWS THIS IS A VERY TIGHT RACE. >> YEAH, I MEAN, WE'RE PRETTY MUCH DOWN TO THE WIRE, BEFORE NOVEMBER NOW. I'M JUST WONDERING IS THERE ANYTHING THAT THE TRUMP CAMPAIGN CAN DO TO NARROW THAT LEAD, THAT SLIGHTLY THAT HARRIS HAS? WHAT DOES HIS CAMPAIGN NEED TO REALLY WORK ON NOW IN THE NEXT FEW WEEKS? BILL: WELL, AS ANNABELLE MENTIONED, THE OTHER WEAKNESS THAT KAMALA HARRIS GETTING INTO THE RACE WAS IMMIGRATION. THAT CONTINUES TO BE A STRONG POINT FOR DONALD TRUMP. HE HAS ACCORDING TO THIS LATEST POLL, GOT A 14 POINT

LEAD. AMONG LIKELY VOTERS WHEN IT COMES TO WHO WOULD HANDLE IMMIGRATION ISSUES MORE EFFECTIVELY. WE HAVE SEEN HIM CONTINUE TO HAMMER IN ON THAT POINT. BUT ONE THING HE REALLY NEEDS TO DO IF THESE NUMBERS HOLD FOR HARRIS, IS DONALD TRUMP NEEDS TO BRING THOSE VOTERS WHO ARE REALLY ON THE PERIPHERY, WHO ARE REALLY NOT SURE WHETHER THEY ARE GOING TO VOTE OR NOT, HE NEEDS TO BRING MORE OF THOSE PEOPLE INTO THE, INTO THE ELECTION, HE NEEDS THEM TO VOTE FOR HIM TO GET OVER THE HUMP. IT IS VERY TIGHT. A LOT OF PEOPLE'S

VIEWS ARE LOCKED BUT A LOT CAN HAPPEN IN THE FINAL MONTH. GO BACK TO 2016, THE FBI REOPENED THEIR PROBE INTO HILLARY CLINTON YOU HAD THE ENTERTAINMENT TONIGHT VIDEO OR AUDIO OF DONALD TRUMP CRITICIZING WOMEN COME OUT. THAT WAS ON THE LAST FOUR WEEKS OF THE CAMPAIGN. THERE ARE PLENTY DEVELOPMENT STILL AHEAD OF US POTENTIALLY. ANNABELLE: BILL, THIS IS AN ELECTION THE PEOPLE ARE TALKING ABOUT COULD END UP BEING DECIDED BY SOMETHING LIKE 50,000 VOTERS. IT REALLY IS GOING TO END UP BEING POSSIBLY VERY VERY CLOSE. WHAT ARE THE KEY GROUPS THAT EACH ONE NEEDS

TO TARGET BETWEEN NOW AND THE VOTING DAY? HISPANICS, FOR INSTANCE, HAS BEEN ONE THAT HAS BEEN HIGHLIGHTED. BILL: YEAH, YOU KNOW, WOMEN, IT'S, IT'S COLLEGE EDUCATED WOMEN FOR KAMALA HARRIS. THEY SWING VERY BROADLY IN HER DIRECTION. DONALD TRUMP IS PROBABLY TRYING TO TARGET MORE WORKING-CLASS WHITE MEN IN PLACES LIKE PENNSYLVANIA, OHIO, ARIZONA, BUT HISPANIC MEN AS WELL, WHO HAVE BEEN CUTTING A LITTLE BIT MORE FOR TRUMP RELATIVE TO HISTORY OF PREVIOUS PRESIDENTIAL ELECTIONS, KAMALA HARRIS IS GOING TO BE TRYING TO DO MORE OUTREACH THERE. AND WIN OVER MORE SUPPORT. BUT YOU ARE RIGHT, IT COULD

VERY WELL BE A MATTER OF TENS OF THOUSANDS OF VOTES IN THESE SIX OR SEVEN KEY BATTLEGROUND STATES. RIGHT NOW THIS POLL SHOWS THAT THINGS ARE SOMEWHAT GOING MORE IN KAMALA HARRIS'S DIRECTION. BUT IT IS SO TIGHT, THAT ANY DEVELOPMENT BETWEEN NOW AND FIVE WEEKS FROM NOW WHEN THE ELECTION TAKES PLACE, COULD EASILY SWING IT TO ONE CANDIDATE OR THE OTHER. YVONNE: THANK YOU. JOINING US OUT OF SINGAPORE. THE LATEST ON THESE POLLS. WE LEAVE YOU WITH LIVE PICTURES FLORIDA WHERE HURRICANE HELENE IS SET TO MAKE LANDFALL. TAKE A LOOK AT THESE GRAPHIC PHOTOS THAT

WE ARE SEEING FROM TAYLOR COUNTY IN FLORIDA HERE RIGHT NOW. PLENTY MORE AHEAD. THIS IS BLOOMBERG. ANNABELLE: JAPAN'S RULING LDP VOTES IN THE NEXT COUPLE HOURS WITH THE WINNER SET TO BECOME THE COUNTRY'S NEXT PRIME MINISTER. WHY THIS HAS BECOME THE MOST OPEN RACE IN THE CONSERVATIVE PARTY'S HISTORY. >> IT'S A CROWDED FIELD OF CONTENDERS VYING FOR A JOB THAT COMES WITH UNPRECEDENTED CHALLENGES. THE LARGE FIELD OF CANDIDATES AND JAPAN'S RULING PARTY ELECTION MAKES IT LIKELY THAT NO ONE WILL SECURE A MAJORITY WITH WOULD TRIGGER ANOTHER ROUND BETWEEN THE TOP TWO CONTENDERS. AMONG THOSE FOR

A POTENTIAL RUN OF, -- THE SON OF A FORMER PRIME MINISTER WHO AT 43 COULD BECOME JAPAN'S YOUNGEST PRIME MINISTER. IC A FORMER PRIME MINISTER WHO IS RUNNING FOR THE FIFTH TIME AND A HARD-LINE CONSERVATIVE WHO WOULD BE JAPAN'S FIRST BY FEMALE PRIME MINISTER. SHE IS ALSO ONE OF THE MOST OUTSPOKEN ON THE -- AND ADVOCATE OF MONETARY EASING. >> SHE SAID THAT BOJ IS MAKE A MISTAKE TO RAISE INTEREST RATES AND FRANKLY, THAT'S SET THE GOVERNMENT OFFER CONFLICT BECAUSE SHE WAS EASY MONEY TO CONTINUE. >> JAPAN'S NEXT LEADER WILL NEED TO GRAPPLE WITH GEOPOLITICAL

CHALLENGES AS WELCOME AS A COUNTRY GETS PULLED DEEPER INTO TENSIONS BETWEEN THE U.S. AND CHINA. TOKYO FACES RETALIATION FROM BEIJING AMID PRESSURE FROM WASHINGTON TO TIGHTEN RESTRICTIONS ON SALES OF ADVANCED CHIP TECHNOLOGY. ADDING TO THE UNCERTAINTIES, THE TIGHT U.S. PRESIDENT DE-RISK THOUGH BOTH CANDIDATES OF A POST NIPPON STEEL'S 4 BILLION TAKEOVER BID FOR U.S. STEEL. >> U.S. STEEL SHOULD REMAIN AMERICAN-OWNED AND AMERICAN OPERATED. >> U.S. STEEL IS NOW BEING SOLD TO JAPAN. I WILL STOP IT. WE GOT TO WORK FAST BUT WE ARE NOT GOING TO LET IT HAPPEN. >> SOME COMMON GROUND IS THE

REVIVAL OF JAPAN'S NUCLEAR POWER INDUSTRY. 13 YEARS AFTER THE FUKUSHIMA DISASTER, THIS IS SEEN AS A WAY TO IMPROVE ENERGY INDEPENDENCE AND REDUCE CARBON EMISSIONS. WHOEVER WINS FRIDAY'S VOTE IS EXPECTED TO CALL A NATIONAL ELECTION SOON. SEEKING TO SHORE UP SUPPORT FROM THE JAPANESE PUBLIC WEARY OF SCANDAL AND DEMANDING SUSTAINABLE ECONOMIC GROWTH. YVONNE: AND WE WILL CONTINUE OUR COVERAGE OF THE ELECTION WITH VOTING TO TO BEGIN AROUND 1 P.M. TOKYO TIME. THE WINNER SHOULD BE ANNOUNCED AROUND 3;:30 BEFORE A NEWS CONFERENCE AROUND 6 P.M. IN THE JAPANESE CAPITAL. LET'S BRING IN THE ASSISTANT PROFESSOR OF

POLITICAL SCIENCE AT SOPHIA UNIVERSITY IN TOKYO. GREAT TO HAVE YOU. WE HAVE COME DOWN TO THE WIRE. SEEMS LIKE THERE IS NO CLEAR-CUT SORT OF WINTER. WHAT DO YOU THINK WILL BE THE LIKELY OUTCOME TODAY? >> AS YOU SAID, IT'S QUITE CLOSE AND VERY DIFFICULT TO CALL. I MEAN, I THINK THE TOP THREE CANDIDATES WOULD BE MR ISHIBA AND MS. TAKICHI. THEY OFFER DIFFERENT POLICIES AND THE DEREK VERY DIFFERENT FACE TO THE PARTY, AS YOUR PACKAGE THAT, HE'S ON HIS FIFTH ATTEMPT TO BECOME PART MINISTER. ONE IS ONLY IN HIS 40'S AND -- THERE WOULD

BE THE FIRST FEMALE PRIME MINISTER. SO THAT CREATES A CERTAIN LEVEL OF INTEREST IN THE ELECTION, BUT IN TERMS OF POLICY, AND THEY DO HAVE THEIR DIFFERENCES BUT THEY ARE ALL CONSERVATIVES AND I THINK IN JAPAN, PERHAPS, IS MORE LOOKING FORWARD TO THE GENERAL ELECTION WHEN IT MIGHT GET SOME REAL CHOICE. ANNABELLE: THERE WAS ALWAYS, OF COURSE A NEW LEADER BRINGING IN SORT OF NEW POLICY IMPERATIVES AND A DIFFERENT FOCUS PERHAPS BUT WHERE DO YOU SORTA SEE THE BIGGEST CHANGE IS COMING THROUGH POSSIBLY ON THE ECONOMIC FRONT OR IN TERMS OF STRUCTURAL ISSUES THAT ARE

FACING THE ECONOMY? THERE'S GEOPOLITICAL CONCERNS. WHAT ARE YOU MOST CONCERNED BY, LOOKING AT MOST CLOSELY? >> I THINK THE JAPANESE PUBLIC ARE MOST CONCERNED ABOUT THE ECONOMY. AND ACTUALLY, ALTHOUGH THE CANDIDATES HAVE ADDRESSED THE ECONOMY ARE QUITE LIGHT ON SPECIFICS WHICH IS TROUBLING FOR JAPANESE CITIZENS WHO HAVE BEEN STRUGGLING WITH HIGH LEVELS OF INFLATION ESPECIALLY IN THE GROCERY BASKETS FOR SEVERAL YEARS NOW. SO THAT I THINK IS THE MOST IMPORTANT FOCUS FOR JAPANESE VOTERS. IT IS THE BREAD AND BUTTER WAGES, COSTS OF THE ECONOMY. I THINK TWO OF THE TOP CANDIDATES WOULD PROBABLY CONTINUE WITH

QUITE SIMILAR POLICIES TO THE PROMISED ARE AS FAR AS RECOGNIZING AND RESPECTING THE BANK OF JAPAN'S INDEPENDENCE AND FOLLOWING THEIR POLICY TO RAISE INTEREST RATES AGAIN SOON. MISS TAGAICHI IS IN FAVOR OF CONTINUE TO HAVE FISCAL STIMULUS TO PUMP MONEY INTO THE ECONOMY. SHE BELIEVES IT CONTINUES TO NEED TO BE INFLATED. HOWEVER, I THINK THERE IS FRUSTRATION IN JAPAN WITH THE CURRENT LEVEL OF INFLATION. SO I THINK THAT MIGHT COME IF SHE WERE TO BECOME PRIME MINISTER, THAT WOULD LEAD HER INTO SOME DIFFICULTY WHEN IT COMES TO THE GENERAL ELECTION. ANNABELLE: IT IS INTERESTING. YVONNE:

THIS ELECTION IS A BIT DIFFERENT BECAUSE PAST VOTES REALLY WE DETERMINED BY ALL THESE POWERFUL FACTIONS WITHIN THE LDP PARTY. NOW THAT SEVERAL HAVE BASICALLY BEEN DISSOLVED, HOW DOES THAT ALL PLAY OUT, AND COULD THERE BE A RISK THAT JAPAN RETURNS BACK TO THE REVOLVING DOOR OF PRIME MINISTERS AGAIN? >> I DON'T THINK NECESSARILY A LACK OF FACTIONS MEANS A RETURN TO THE REVOLVING DOOR. THE FACTIONS HAVE BEEN IN PLAY IN PREVIOUS PERIODS WHERE WHERE WE HAD ONE PRIME MINISTER EVERY YEAR. THAT IS NOT THE ONLY ISSUE. THE SAME POLITICAL PARTY HAS BEEN IN POWER

FOR MOST OF THE PERIOD SINCE 1955. AND ALTHOUGH THE PARTY EVOLVES, IT DOES NOT OFFER ANYTHING PARTICULARLY NEW TO JAPANESE VOTERS. AND THERE IS NO REAL BLUE SKY THINKING ABOUT HOW TO GET JAPAN OUT OF THIS 30 YEAR RUT. AND I THINK IT IS THAT LACK OF INNOVATION ON POLICY THAT LEADS PRIME MINISTER'S TO LOSE THEIR POPULARITY WITH VOTERS. WHICH IS WHY WE SEE THEM PUSHED OUT OF THE DOOR. SO WE HAD PRIME MINISTERS BEFORE THAT DID NOT HAVE THEIR OWN FRACTIONS. ABE WAS FACTIONLESS WHEN HE FIRST BECAME PRIME MINISTER FOR HIS SECOND TERM IN

2012, AND HE WENT ON TO BE THE LONGEST-SERVING PRIME MINISTER IN THE POST WAR PERIOD. WE CAN OVEREMPHASIZE A DIFFERENCE OF THE FACTIONS DISSOLVING MEANS TO JAPANESE POLITICS AND UNOFFICIALLY, THOSE WHO WERE PART OF THE SAME FACTION IN THE PAST, THE GROUPING AROUND PARTICULAR CANDIDATES, WITH THE FORMER ABE FACTION SUPPORTING TAGAICHI AND ASO FACTION SUPPORTING -- I THINK FACTIONAL POLITICS STILL EXISTS. AND ALSO FACTIONS ARE NOT ALWAYS THE REASON WHY POLITICS IS STABLE OR UNSTABLE. THERE ARE MANY OTHER FACTORS. YVONNE: EXACTLY TO YOUR POINT ABOUT THE LDP NOT BE KNOWN AS A PARTY FOR BLUE

SKY THINKING. ANNABELLE: DO YOU THINK THAT A NEW PRIME MINISTER ON THE WAY IT PUBLIC PERCEPTIONS AROUND THE LDP? SOMEONE WHO IS NOT SEEKING A SECOND TERM OF BECAUSE OF HIS DECLINING APPROVAL RATINGS. >> I THINK HIS DECLINING APPROVAL RATINGS ARE VERY MUCH CONNECTED TO ALL OF THE POLITICAL FUNDING SCANDALS THAT HAVE ENGULFED THE LDP IN THE PAST YEAR. SO I DON'T THINK THOSE PROBLEMS DISAPPEAR WITH A NEW PRIME MINISTER. TWO OF THE CANDIDATES ARE KNOWN FOR TAKING QUITE STRONG POSITIONS AGAINST CORRUPTION WITHIN THEIR OWN PARTY. THEY'VE BOTH SAID THEY WOULD INTRODUCE STRONGER POLITICAL REFORMS.

BUT POLITICAL REFORMS IS A SLOGAN IS SOMETHING WE HAVE BEEN HEARING TO - -IN JAPAN SINCE THE 1990'S AND MAYBE SINCE THE 1970'S. AND THE SLUSH MONEY DOES NOT REALLY SEEM TO CHANGE. I THINK THE PUBLIC ARE ACTUALLY SENECHAL. -- CYNICAL. YVONNE: IT IS RARE TO SEE WOMEN RUNNING FOR THIS. I'M WONDERING IF WE DO SEE ONE OF THE WOMEN THAT ARE RUNNING TO ACTUALLY WIN THIS, DO YOU THINK JAPAN IS READY FOR ITS FIRST FEMALE PRIME MINISTER? TINA: I THINK JAPAN IS MORE THAN READY FOR ITS FIRST FEMALE PRIME MINISTER. I AM NOT SURE

THAT THE ONLY FEMALE CANDIDATE WHO HAS A CHANCE OF WINNING IS ACTUALLY VERY REPRESENTATIVE OF THE VIEWS OF MODERN JAPANESE WOMEN. SHE IS VERY CONSERVATIVE. AS FAR SHE CONCERN, WOMEN SHOULD NOT BE ALLOWED TO BE THE JAPANESE EMPEROR'S. MARRIED WOMEN SHOULD NOT BE ALLOWED TO KEEP THEIR ORIGINAL FAMILY NAMES. SO SHE IS VERY CONSERVATIVE ON THE ISSUES THAT MAY AFFECT WOMEN MORE THAN OTHER VOTERS. SO, I DON'T KNOW IF SHE WOULD NECESSARILY BE SOMEBODY THAT A LOT OF WOMEN IN JAPAN WOULD BE HAPPY TO SEE AS PRIME MINISTER GIVEN HER CONSERVATIVE VIEWS, ESPECIALLY YOUNGER WOMEN

WHO ARE MUCH MORE PROGRESSIVE. JAPAN IS A LOT MORE PROGRESSIVE THAN THE LDP. ANNABELLE: THE AS PROFESSOR AT SOPHIA UNIVERSITY. WE WILL HAVE MORE ON THAT LDP VOTE LATER THROUGHOUT OUR SHOWS BUT SOME BREAKING LINES CROSSING THE TERMINAL NOW RELATING TO CHIPMAKER ARM AND INTEL. AS WE KNOW INTEL HAD A RAPID DECLINE IN ITS SHARE PRICE OVER THE COURSE OF THIS YEAR AND THERE HAS BEEN A LOT OF TAKERS FOR SPECULATION -- TAKEOVER SPECULATION WE ARE HEARING FROM SOURCES THAT ARM, MAJORITY OWNED BY SOFTBANK IN JAPAN AND MAKES A LOT OF ITS REVENUE FROM SELLING

DESIGNS FOR SMARTPHONES, BUT WE ARE HEARING ARM APPROACHED INTEL ABOUT POTENTIALLY BUYING ITS PRODUCT DIVISION. NOW, THE MAKEUP OF INTEL, TWO MAIN UNITS, THE PRODUCT GROUP, WHICH IS THE ONE AND FOCUS HERE. IT SELLS CHIPS FOR PC'S, NETWORKING EQUIPMENT AND EVEN OTHER THAT OPERATES FACTORIES. WE ARE REPORTING LAST WEEK AND THIS WEEK ABOUT HOW INTEL IS MAKING ITS FABS FACILITY TOTALLY SEPARATE. ARM APPROACHED INTEL ONLY TO BE TOLD THAT THAT BUSINESS IS NOT FOR SALE. YVONNE: ALL RIGHT. THAT WILL BE PRETTY INTERESTING. WE WILL SEE HOW THINGS DO WHEN OF COURSE INTEL AND OF COURSE

THE U.S. MARKETS OPEN AS WELL. IN TERMS OF WHAT WE ARE TALKING TO IN TERMS OF THIS LDP ELECTION. IT IS INTERESTING WHEN WE TALK ABOUT THESE CANDIDATES, HOW THEY HAVE THEIR VIEWS ON HOW INTEREST RATES WILL GO FOR EXAMPLE AND MARKETS SEEM TO HAVE THEIR DIFFERENT SORT OF ANALYSIS ON WHAT IMPACT IT COULD HAVE ON THE YEN. LET'S BRING IN OUR JAPAN EQUITIES REPORTER. TELL US MORE ABOUT THE SECTORS INVESTORS ARE LOOKING AT AROUND THIS VOTE AND WHAT WILL BE THE OUTLOOK FOR JAPANESE STOCKS MOVING FORWARD. AYA: GREAT. THANK YOU SO MUCH FOR HAVING

ME. A LOT OF MARKET PARTICIPANTS ARE INTERESTED IN THE MONETARY POLICY VIEWS FROM EACH CANDIDATE. THEY ARE HAWKISH ON MONETARY POLICY, SO THAT WOULD MEAN THAT THE YEN WOULD STRENGTHEN, INTEREST RATES COULD POTENTIALLY CONTINUE TO GO UP, AND THAT WOULD HURT EXPORTING SECTORS. AND THE JAPANESE STOCKS COULD FALL. BUT ON THE OTHER HAND, IF IT IS TAGAICHI, SHE IS VERY DOVISH ON MONETARY POLICY, SO THE YEN COULD WEAKEN . AND BECAUSE JAPANESE STOCKS ARE MADE UP BY SO MUCH EXPORTING COMPANIES, JAPANESE STOCKS COULD AGAIN START TO GO UP. AND HAVE, AND THERE WOULD BE LOWER

INTEREST RATES. THOSE ARE THE SECTORS WE ARE WATCHING. EXPORTING COMPANIES WITH THE YEN CURRENCY, AND MOVES, AS WELL AS THE BANKING SECTOR. THAT COULD BE ANOTHER POINT OF INTEREST FOR MANY MARKET PARTICIPANTS. AS INTEREST RATES GO UP, THE JAPANESE BANKING SECTORS WILL ALSO BENEFIT FROM THAT. SO, A LOT OF PEOPLE ARE WATCHING BANKING SECTORS AND FINANCIALS AS WELL. ANNABELLE: THERE ARE OF COURSE A LOT OF DIFFERENCES. WE HAVE GOT A RECORD NINE CANDIDATES CONTESTING THIS LDP ELECTION. BUT AT THE SAME TIME, THERE ARE SIMILARITIES BETWEEN THEM AS WELL. WHICH SECTORS ARE YOU LOOKING AT THE

BENEFIT HERE? AYA: SO, MOST OF, ACTUALLY ALL OF THE CANDIDATES ARE VERY KEEN ON. RESTARTING NUCLEAR POWER PLANT SO THAT WOULD MEAN THAT THE ENERGY SECTOR COULD DEFINITELY BE OF INTEREST FOR MARKET PARTICIPANTS ESPECIALLY COMPANIES LIKE TOKYO ELECTRIC OR EVEN -- OR MITSUBISHI HEAVY WHO HAVE BEEN VERY KEEN ON ENERGY. AND, ALSO, MOST OF THE CANDIDATES ARE ALSO VERY SUPPORTIVE ON RAISING DEFENSE BUDGETS. AND THE CURRENT ADMINISTRATION, THEY'VE ACTUALLY GOT THE RECORD BUDGET FOR THE FISCAL YEAR STARTING IN APRIL. SO A LOT OF DEFENSE COMPANIES ARE ON THE WATCH. FOR EXAMPLE, MITSUBISHI OR IHI, THOSE

ARE COMPANIES THAT HAVE BEEN GOING UP AS WELL. THOSE ARE SECTORS THAT PEOPLE ARE WATCHING AT THE MOMENT. YVONNE: IN TOKYO. ANNABELLE: THANKS SO MUCH FOR YOUR INSIGHTS AND OF COURSE YOU CAN TURN TO YOUR BLOOMBERG FOR MORE ON THIS. TO GET COMMENTARY AND ANALYSIS FROM OUR EXPERT EDITORS, AT LDP VOTE VERY MUCH AND FOCUS TODAY. WE ARE EXPECTING THE DECISION IN A PRESS CONFERENCE WAS THE DAY AS WELL. THIS IS BLOOMBERG. ♪ ANNABELLE: THIS IS THE MOST READ STORY ON THE TERMINAL OVER THE PAST SEVERAL HOURS. I'M NOT REALLY SURPRISE. I MEAN THERE IS

SO MUCH OPTIMISM AROUND CHINESE EQUITIES, BUT THIS IS THE COMMENTS THAT WE GOT FROM DAVID TEPPER, HE WAS IN AN INTERVIEW BUT SPEAKING ABOUT WHAT HE'S THINKING AROUND THE CHINA STIMULUS MEASURES THAT HAVE BEEN ANNOUNCED SO FAR. HE'S SAYING HE'S BUYING EVERYTHING. RELATED TO BEIJING. YVONNE: FUTURES. HE'S GOING ALL IN. AS SOME HAVE SAID, POLICYMAKERS HAVE GONE ALL IN WHEN IT COMES TO STIMULUS MEASURES. EVERYTHING RELATED CHINA AFTER WE HEARD FROM POLICYMAKERS THIS WEEK AS WELL. YOU KNOW, IT SEEMS TO BE THAT WE ARE GETTING MORE OF THESE SORT OF NONCONSENT OF CALLS TURN MORE

CONSENSUS-- NON CONSENSUS CALLS TURN MORE CONSENSUS. THEY HAVE HELD THEIR POSITIONS AND CHINA FOR SOME TIME THAT YOU ARE STARTING TO SEE HEDGE FUNDS REALLY COMING BACK IN A BIG WAY. I THINK HEDGE FUNDS HAVE ONE OF THE BIGGEST ACTIVITY WE'VE SEEN FRONT SINCE MARCH OF 2021 FOR THE LAST FEW SESSIONS SO THE HOT MONEY IS COMING BACK. AND HE SAYS, HE USUALLY HAS LIMITS COME HISTORIC LIMITS. I THOUGHT IT WAS INTERESTING. I SET A LONG TIME I DO NOT GO ABOVE 10%. THAT IS PROBABLY NOT TRUE ANYMORE P OR HE SAYS HE HAS A

NEWFOUND LIMIT IN HIS PULLBACK. ANNABELLE: GOLDMAN SACHS FOR INSTANCE HAVE BEEN SAYING THEY ARE SEEING BIG INFLOWS. BANK OF AMERICA, SECURITIES, IN THE SHORT TERM, THERE'S AREAS OF THE MARKET YOU CAN GO INTO, CONSUMER, PROPERTY, STILL IT IS TO PLAY. YVONNE: YOU TALK ABOUT THE RISKS. LET'S GET A REALITY CHECK. WE WILL SEE IF THIS ALL FOLLOWS THROUGH. WE MIGHT BE MET WITH DISAPPOINTMENT ONCE AGAIN. ANOTHER ARGUMENT IS WE SAW THIS U.S. OAK -- WE STILL HAVE THIS U.S. ELECTION. MAYBE THIS IS A SHORT-TERM BALANCE UNTIL WE GET INTO NOVEMBER OR NEXT YEAR. BUT I

THINK DAVID TEPPER HAD INTERESTING LINE. "I DON'T CARE ABOUT THE GEOPOLITICS. THIS IS INTERNAL FISCAL STIMULUS AND THAT WILL ENCOURAGE CONSUMPTION." VERY BULLISH WORDS FROM MR. TEPPER. ANNABELLE: THINK ABOUT VALUATIONS. THESE STOCKS ARE INCREDIBLY CHEAP. LET'S TAKE A LOOK AT WHAT WE ARE SEEING INTRADAY FOR THE HANG SENG. UP 2.5% RIGHT NOW. IT IS A VERY BROAD BASED RALLY THAT WE ARE SEEING. LOTS OF DIFFERENT SECTORS, PARTICULARLY IN THE CONSUMPTION STORY, THAT BIG PUSH AROUND STIMULUS IS PLAYING OUT IN PARTICULAR. BUT TRADING VOLUMES AS WELL. THOSE ARE ABSOLUTELY SPIKING. WE ARE AT LEVELS WE HAVE

NOT SEEN GOING ALL THE WAY BACK TO 2011 BUT YOU'RE LOOKING AT MULTIYEAR HIGHS ON THESE INDICES. YVONNE: VOLUMES ARE UP. THE SHANGHAI COMPOSITE IS BACK ABOVE 3000 FOR THE FIRST TIME SINCE JUNE. WE TALKED ABOUT CSI 300 SET FOR THE FIRST -- THE BEST WEEK SINCE 2008. ADDING ON TO THE GAINS MOMENTUM IN THIS RALLY. ARE WE FINALLY ABLE TO CHEER INTO THE WEEKEND? SEEMS LIKE IT. BLOOMBERG MARKETS ASIA IS NEXT. HAVE A GREAT WEEKEND.