1:00 p.m. in sydney, 11:00 a.m. in shanghai. i am paul allen. asian equities getting after softer than expected u.s. jobs data provide -- revise beds of the federal court later this year. hong kong's rally takes a breather. beijing's aborted policy stance could help sentiment. chinese president xi jinping touching down in paris to begin a three nation european tour aiming to boost ties even as trade tensions arise. great interviews coming up, the ceo of the nyhan drug -- nahinrda automotive decision joins us. the ceo of india's second-biggest telecommunications company has more on how ill will change the business. let's get down to business with a check on the markets, china back trading after a decent long

weekend and seems to be playing catch-up. avril: mainland markets are in catch-up mode, one at the focuses for asia-pacific today, but we are keeping a close eye to the asian market reaction to the softer than expected u.s. payrolls number reviving beds that we will see the fed cut rates this year. some pricing in september. we saw how treasuries rallied friday and the dollar experienced its worst we can more than a month, so there is that follow-through in asia-pacific today. on dollar-yen despite initial reprieve, investors switching back to the interest rate differential impact of the 154 handle. hong kong stocks are flight. mainland market investors' first chance to react to a mostly positive outcome from the politburo meeting.

progrowth messages and physical monetary support that policy makers will explore do ways to fix the housing crisis. msci 300 climbing as much as 6%. we did get the pboc providing some support for the yuan with its fix, the lowest since the middle of april, but if you look at this, the catch-up that we saw in onshore yuan not fully embracing. now moving back toward 721 for the trajectory of the currency. let's take a look at what we see in equities as well, because we have been keeping a close eye on the equity risk premium or china, and that has been widening versus other peers making a more compelling case for chinese equities. we have seen how earnings have

been coming in more resilient reacting to what we get out of the politburo meeting. paul: thanks very much. let's get more on the markets without first guest, aipac strategist. i want to get your thoughts on the rally we are seeing in the mainland, chinese stocks trading higher after coming back from the extended weekend. how sustainable do you think this rally is? >> given the recent economic data and policy support we have seen from authorities, but the problem is the underlying issue with the property market is unlikely to be resolved anytime soon, so it is difficult to see on current levels. we focus more on the selective

and differential stocks in the banking sector, which are very healthy. paul: avril brought up a chart a moment ago about the risk premium. unsurprisingly china extracts a much higher risk premium than other asian markets, so it is cheap for a reason. do you have any sense of caution if you were dipping back into chinese markets? >> i do not think the risk premium will go away anytime soon, because investors are worried about the structure will slow down chinese economy. on top of that, we have u.s. elections coming up in november, so there will be a risk premium priced into the market. cyclically you could see a rally, but because of these issues i do not think you will see a major repricing of the risk premium in the market. paul: do you anticipate anything

meaningful from the politburo in the coming months? >> it will depend on what we have heard in the past meetings. target high percent gdp growth, focus more on the economic recovery, but i do we will be looking more for how china will achieve the growth target. if there were no details on that, the market could be disappointed. paul: i want to talk about other markets you are favoring, japan, indonesia as well. first quarter gdp out a bit later. what are you focusing on in those two markets? >> in japan, we are focusing on the banking sector because given the week as of the yen it is likely the boj will hike rates again, good be in the month of july.

that is the place to be in the japanese equity market. on indonesia, it is more of the cousin of india, which has done well in recent months and quarters. equity market exposure and cheaper valuations. if the economy grows and 5%, given attractive valuation we could see some interest from foreign investors. paul: in terms of japan we strongly suspect we saw a little bit of intervention last week. it is a long weekend for japan is well, the market on holiday today. do you anticipate we might see any action from administrative finance or do you think that is mission complete for now? i think the bank of japan of finance are trying to cut volatility in the yen market, not trying to influence the

price of oil. we might see some further action if the yen moves above 15 five, but the bigger problem at the moment is the u.s. bond rate. with the softness in the labor market, that should provide support for the yen, so we see currency falling beneath 150 in the next few months and orders. paul: what is your allocation to bonds at the moment and haven assets more broadly? >> we have a positive view on the fixed income market, and with the softness in the labor market we are seeing with the data on friday, it provides a catalyst for investors who mr. the rally last year -- who missed the rally last year. five to seven years provide a good opportunity. it we could see double-digit bonds in the next year.

one other as i classes, gold provides a good opportunity. it went up to 2400 and know we are seeing pullback. at 2300 it provides a good opportunity. we are looking at gold going back to 2500 in the next few months and quarters. paul: our guest from ubs wealth management, thank you for joining us. coming up, we will get to our exclusive interview with the ceo of indonesia's second largest telecommunications company. we will discuss what is next for the company after strong first quarter results and we will be heading back to the bnp paribas conference with stephen engle and an exclusive interview there as well. >> we have been focusing a lot

on the eeev space in china, the biggest ev market and they are exporting and have big export ambitions, but what about india? india is the world's third-largest auto market but only a fraction of the passenger car so there are ev's. according to bloomberg economists it is about 2.3% of sales. our next guest is the ceo of the automobile division of mohindra. they have an aggressive ev strategy. we will find those details coming up. ♪

paul: chicago fed president austin nichols the latest u.s. jobs report gives them comfort that the economy is not overheating. when it comes to possible rate cuts this year he says he needs to see more data confirming inflation is under control. >> 175,000 is a solid report. some of the root of our frictions year might be it is kind of a day trader's, and there is an economic timetable. before sitting monetary policy

you have to take a longer arc view on inflation, unemployment, and we are just trying to figure out after the excellent dual mandate performance of 2023 where inflation fell almost as much as it has fallen on the record and did so with that a recession, and how much can we continue that into 2024? we had a bump at the start of the year on the inflation front, and everybody has got to take a step back and try to figure out is that a sign that the economy is overheating, or is that a sign of some other thing? the more jobs report to get like this that are solid but clearly moving back into something that looks like pre-covid and conventional times, the more confident we can be that the economy is not overheating, but we have got to watch of this. >> you were one of the -- i do

not want to use the word dovish, but more optimistic people about the possibility that rates could be cut. how do you feel now? ims numbers show slow down, spending numbers were lower than in the last quarter. are we setting up to go back to the idea that a rate cuts are going to happen this year? >> i do not like committing, tying our hands even for the next meeting, much less when it comes to the fall and going into next year. i would say i was optimistic in 2023 that we could hit what i was calling the golden path, that there are reasons why in an unprecedented way we could potentially get inflation down significantly without having a big recession, which previous to 2023, that really does not happen. we did that in 2023.

as we are looking in 2024, we clearly had a bump at the start of this year, and we have just got to get comfort that it is not a sign of a re-acceleration of the economy. paul: chicago fed president austin goolsbee speaking with our colleague. let's take a look at he was futures after what a lot of people calling the goldilocks jobs report, very narrowly in positive territory by a few points, so let's see what happens when we kick off the new trading week in the u.s. and if you are is time. for more on the markets, we are joined by gina martin adams. i want to start up with some of those remarks from austin, always consistent if nothing else. a data-dependent. we heard from john williams saying inflation is heading lower, but the question is when or why is inflation proving so

sticky? >> is a great question, and as much as the monetary policy professionals want to take a victory lap, what happened in 2023 was the cure for inflation was inflation itself. we saw in the earnings stream for the s&p 500 a tremendous downdraft reflecting the spike enterprises that emerged in late 2021 and 2022. it now we are seeing the benefits of that lower inflation as companies themselves adjusted, holdback, created an earnings recession to help moderate that inflation. they are benefiting from the deceleration in inflation, and that is creating an up wave in earnings. monetary policy is one thing, but what is happening in the real economy is making a big difference for reprints in the united states. inflation volatility is still

higher than many companies would like to see, and we see that reflected in spending plans. that they are careful with where they deploy their capital, thinking about productivity, enhancing ai-based spending as an area of opportunity to help mitigate the impacts of this volatile inflation landscape right now. paul: ai has proved to be a powerful catalyst, and it seems those days have been news being good news for markets are a long way behind us. are they proving that they do not need easy money to keep pushing higher? >> i think that is an interesting point is when money was so easy, we have to ask ourselves, without issuing on that easy money, and as money has gotten more expensive is it having other dampening effects on corporates, and even though they took advantage of the 2020 low interest rates, they have

gone back that that over the course of the last three years. they are not issuing a lot more, but they are able to fund themselves in large part through cash flow generation. we see this most profoundly within the u.s. equity markets, within the mega caps, as they are so-called, then magnificent seven. they tend to produce stronger cash flow growth. at they are not dependent, and therefore what is happening with interest rates only has peripheral impacts on their performance as long as they are generating cash flow through their operations. they are able to fund future investments, capital deployment, and we are seeing that play out in real time, so monetary policy has some impacts but it is not the end-all be-all u.s. corporates. paul: we are seeing a decent rally today in chinese markets playing catch up after the long weekend. how sustainable does this really

look to you? >> when we came into this year chinese equities were tremendously oversold. valuation several standard deviations below the long-term average. basically all hope was lost for china, so what we are having right now is the early stages of an confidence rally and the recovery rally perpetuated by policy and the degree to which policymakers are willing to pull the levers in favor of greater risk tolerance. that is fueling the china recovery trade at this moment. that said, if we start to have real improvements in economic data and trends, you can see i never mega marriage, and that is what you start to look for in this earnings season and the next earnings season is due to get a results that confirm optimism in china, and that could fuel under the leg higher, but for now you cannot ignore policy. you have had a big policy movements in favor at a time

when the markets were oversold, and that is usually the trigger for improvement and risk tolerance. we need follow-through from the economy at this point. paul: gina martin adams there, and cooper joining us. we will stay with china, because we have president xi jinping in europe, there for the first time in five years. we will get the latest on his goals in the region next. this is bloomberg. ♪

paul: chinese president xi jinping has arrived in france on a three nation trip through europe designed to bolster ties even as trade tensions mount. rebecca wilkins joins us for more. what does a successful trip look

like for xi jinping? >> for china, the main priority is to figure out a way to put more space between eu policy and u.s. policy. we have seen the eu moving and lockstep with the u.s. when it comes to expanding this litany of investigations and probes into state 70's -- state subsidies. it has spread to a range of other cleantech industries and is a major sticking point from beijing's point of view, because of course, part of their plan for economic recovery is the so-called new three growth drivers, which include solar panels send electric vehicles, so it is a major issue for beijing and will be one of the top priorities if not the top

priority or president xi jinping as he sits down to negotiate with emmanuel macron. paul: some of these issues have the weft of intractability. france adopting policies that effectively exclude chinese made ev's from the market. how do you get around this problem without starting an era of trade reprisals? >> worse scenario here is the eu launches into some full trade war situation with china with a really high tariffs on ev's, so some of beijing's policy may be more about moderation come more about slowing the momentum of those pros rather than trying to eliminate the risk altogether. the other element that is important to watches china is also making that case that

actually in keeping those trade barriers ultimately creates economic rewards for countries in europe, so look at several cases of chinese ev companies going to european nations to set up their own factories. we had an automaker cherry opening a factory using an old nissan factory in spain. we also have another plan to open a factory in hungary. all of this creates jobs and help the local economy and is part of the case that beijing is trying to make that if you continue to do business with china, they can help boost, and it is not advantageous to individual markets within the eu to roll out these broad-based eu restrictions. paul: rebecca wilkins there.

let's take a look at some of the stocks we are tracking on the markets at the moment. let's have a look at apple's of priors -- suppliers currently trading. it has been a good week for hong kong tech stocks also, hon hai better by 6%. take a look at aac technologies also in positive territory. what if we got coming up? we will take a look at global movers at the moment. let's see what we have here. again, a lot of green on the screen. we have -- china returning from a long weekend, japan and korea currently on long holiday, but the msci index firmly in

positive territory at the moment. still to come, we will go back lives to the bnp paribas conference in hong kong. the ceo of mahindra's automotive division will be joining us for an interview next. this is bloomberg. ♪ her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage?

we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

paul: welcome back. let's check in on how markets are faring with avril hong. avril: we are taking a look at

the markets as they go into the lunch break, but they have been reacting today a lot to do with the policy outcome from the politburo meeting, mostly read as a positive sign, signals of fiscal and monetary support and also the policy seem to be exploring more ways to support the real estate sector, so all in. there is a rebound in the mainland stocks, msci china running a little higher compared to what we saw the later parts of last week. it is not as pronounced, but to connecting we are watching up for is how this bull case for chinese equities appears to be more compelling is best to a look at the equities risk premium widening versus other peers. let's take a look at that yuan as well, because the offshore

currency was enjoying a bit of a rebound last week, but on short today we are not seeing the catch of that pronounce. we started the day on dollar china at 720. let's take a look at the indian rupee. we sought more or less declines, but perhaps what we have seen from the markets. it was against the backdrop of the softer landing, expected a payrolls data, and investors shifting their bets that maybe this year we will see a cut from the fed. dollar-rupee hovering at a 3.43 at the moment. paul: bnp paribas is holding its second annual electric vehicle conference in hong kong that brings together influential figures in market-leading idleness to discuss the future

of the bees, so let's get over to the event where stephen engle is standing by with our next guest. >> our next guest is the ceo of the automotive division of mahindra. you just flew in from mumbai and then you fly back, because you have a lot on your plate. you have an aggressive ev strategy, but the ev market in india is not developed. 2.3% of passenger cars sold in india are ev's, which is nothing compared to china. what is your next step in getting the ev to the market? >> it is early days for the ev market in india. we launched our car four or five

quarters ago and we are 10% of the market, but these are mainstream ev's that we have, and our view is that we need to take strong and authentic ev's to the space, so we have launched five new ev's. three of them will be coming out in one year or so, and these are suvs which happen to be ev's, lifestyle vehicles full of technology and what customers want. >> you build build up planted western india. at they are already starting to crank them out? >> that is right. in a record time we present a factory. we unloaded the first of the vehicles about three months ago. >> how would you get to the target by 20 27, you want 20% 30% to be ev's? is that attainable?

>> we are optimistic about that goal, and if you see our portfolio today, we may cars and the mid to upper price segment of the market, and even with that the number one suv player from a revenue perspective in the past three quarters if you look at it and from volume as well, we are number two, so we are optimistic we can take our segment products into the ev range. >> how about your local supply chain for ev batteries? you have a partnership with the volkswagen. your competitors are building better implants in india, but we have not heard similar plans for you. how will you bring down the cost to streamline your every supply chains to keep costs low? >> most of what is happening so far is largely around battery assemblies, not the fundamental

of making the battery units themselves. we have an assembly plant along with the factory as well, so the next level of innovation has to happen at the fundamental level, and our partnership is a holistic partnership over a period of time. >> how do you see that partnership growing? volkswagen is trying to sell its own ev's in india. >> early to talk about anything but the agreement we have with the agreement we have with volkswagen at this time, but we are looking at them as a strategic partner in the long term. >> you are also getting investment from the likes of tamasac. >> these are all recognition of the excitement in the market at this point in time and the

credibility that mahindra has with their portfolio. they have seen the development we have had with the early products, so it is a reflection of the strategy we have. >> what is your biggest challenge? >> at this point in time the category itself is early days, so funding the momentum for the category is what we are working on. we are in early stages in the category, and the extent of the portfolio will show up in one year. >> what do you make of a company like tesla? he diverted to china and had his big announcement that they will give full self-driving system with baidu approved intranet. they are much further along, and he talked about he wants to

invest a lot in the india market and india as relaxed import duties in place as long as they invest. what does a big player like that coming into the market, how do you compete about that? >> it is the third largest market in the world, and the market is growing fast. the ev segment grew 20% last year, so it is natural people want to come in. for us, competition is welcome. global competitors should bring in a lot of credibility for the segment. it should give excitement and credibility to the segment. we welcome having competition coming in. >> the five dvds that you are planning are all suvs.

what are your plans to electrify more of your fleet and how much funds you need to do that? >> at this time these five busy bees are the portfolio that we have, but overate period of timely plan to take the rest of the portfolio and electrified them as well, but that will happen after these five busy bees come out in the next three years. >> what kind of fundraising do you need? >> at this time we are well-funded. it investors bring in expertise and best practices for us. we are well-funded for the plans we have. >> you mentioned a new one next year sometime. when do you expect that you were up to scale? what timeframe are we talking about. that china has gone from 0 to 60

pretty quickly. do you have the same capability? >> i do not see infrastructure issues at this point in time. we are not concerned about infrastructure challenges. >> supply chain challenges? everyone has that, raw materials and everything. how do you overcome those? >> if there is anything we learn from covid it is about being strategic and semi conductors and batteries. we have learned about street dj ownerships with these players, so based on those learnings i think we are quite confident that we will be able to weather germany transition that might come. >> you have not opened up the order book your suvs, can you give me an indication of what is a realistic total sale? >> hard to say when it will

start to play out, but what we have is a plan which is under 100,000, but we can take it up if we need to. >> thanks so much for coming all the way from mumbai and talking to bloomberg television here at the bnp paribas ev summit. that is our rep for day one. back to you guys. paul: thanks very much for that. we have plenty more coming up. indonesia possibly a second largest telecom business reporting a first earnings beat. the ceo will join us next. this is bloomberg. ♪

paul: indonesia's first quarter gdp our is due at the top of the art. economists think growth likely ticked uplifted by domestic demand. we will talk about that and more with our next guest who runs the country's second largest telecoms a business. president, director, and ceo joining us now. thank you so much for your time.

i might get your thoughts on indonesia's macro growth picture in a moment, but first i want to talk about your plans. what sort of strategic investments do you have planned for infrastructure coming up? >> we have been constantly investing anywhere between $800 million and $900 million. 60% of that, we want to be sure we are able to help indonesia. especially all of the villages where we are ensuring the quality of internet, and what we have seen through data that in the next three or four years there are 22,000,001st internet users -- first time internet

users coming from indonesia. paul: definitely an attractive growth story for you in indonesia. how do you propose to find these developments that you are looking at? will you be selling towers or other digital infrastructure assets? >> we have a very strong balance sheet with strong shareholders. we want to be asset light. we are looking at fiber. we are in the early stage, but mainly we are doing that to ensure what is best for indonesia. that is what our focus is at this point in time. paul: do you see a lot of consolidation happening in your industry going forward? you are looking out for m&a opportunities yourself? >> do your first point, we have

seen across the region and across the world, consolidation is good for the industry, so that is been the trend. we started with thailand, malaysia, and i think they are more opportunities in indonesia itself. we acquired a customer at the end of last year. we had the integration ready with us and we have been able to integrate that. especially on the space of ftph and broadbent. we are a small operator, and we believe this business needs scale, but we are not in a rush. paul: there are still some goals from that merger with hutchinson

that you still need to realize. what are the synergies that you are still looking at? >> yes, when we started this journey i remember talking to bloomberg, and the question was whether it would be $300 million or $400 million and whether it would be four years or five years? the network pieces mostly done. now we're looking at i.t. and some of the other things, but overall on both fronts, we have quality. as i said, cost of $400 million u.s., but the number one promise that we will be able to deliver a better experience to our customer, you can see that from all of the third-party reports, and you are hearing the same

from our 100 million customers. paul: you all have some competition on the way as well in the form of elon musk's starlink satellite due to start operations in indonesia, very effective at reaching unreached pockets of the market. how concerned are you and are you doing anything to retain your market share? >> this is my personal view. i do not see this as a competition. it will help us connect, and i see it more as a collaboration. i have been talking about this. i do not see this as a competition at all. at what level we were, it does not make sense. i think the key thing here is how do some of these technologies help us connect to

the unconnected, how they can work with us on transport. that will be a benefit for the country and also be good collaboration story. paul: in terms of collaborations, you also have the chance of becoming nvidia's cloud partner. how do you see this unfolding? >> we are getting a lot of support from nvidia. nvidia is an iconic brand, and we want to make sure that indonesia is on the forefront, and our first set of gpu's will be in the country june itself, and we are seeing a lot of interest and demand. i think the key learning here is the ability give it a human capital, for us to ensure that we get the full benefit of this

ai journey. we want to work with our partner not only to get with the technology, but i we are able to put the get investment on human capital, ending the ai talent and gen ai talent. the partners are working, and we want to make sure that every dollar we invest on technology will be a dollar invested on human support. paul: i want to get your views on indonesia gdp. we are expecting to see a modest tick up for the first quarter, but what is your outlook for indonesia's growth story? >> if you look at indonesia the last five years, 5% was given, and with the election behind us and continuation of policies, i think we are heading toward 5.5% and 6% will be a matter of time.

indonesia has the potential to grow at 6% or 7%. paul: vikram, thank you so much for joining us. as you might've seen on the screen, indian markets have opened, so let's have a look at how we are tracking for indian stocks at the moment. broader index doing well, but we are focusing on one stuck in particular, kotak mahindra bank, the stock upgraded by jp morgan at another analyst as well, the company reporting better than expected earnings for the fiscal fourth-quarter. it did beat estimates. the ceo says the lender is going to focus on cross-selling its products to existing customers until nar rbis ban on online platforms are lifted. we got the stock up about 3.75%

in the early going. still to another exclusive interview with the liv golf ceo. hear more about their plans to expand in asia next. this is bloomberg. ♪

paul: liv golf ceo norman says

other countries are ready to take a swing at this board. he was speaking exclusively with haslinda amin on the sidelines in singapore. >> i am a huge fan of asia. always have been for 40 years. i got calls, we were just into manila. the philippines are keen to get us in. golf in the philippines is doing well. they have a 7.3% gdp, incredible what the philippines are doing, so they want to invest into what is the best thing to bring in. we are not just sport. we are sports, entertainment, and culture. the excitement we are getting on a global basis, just in manila. tokyo wants it. korea wants us.

china, malaysia. a very influential person from malaysia said we need help bringing golf to malaysia. happy to do it. we did it in vietnam at such a successful measure. paul: see the full interview with greg norman and its expansion plans in the next edition of latitude with highs haslinda amin that airs in june. it let's get to corporate stories we are following. qantas has agreed to pay a fine of $100 million australian and compensate customers over claims that the airline sold tickets on thousands of flights it is already decided to cancel. the agreement with the watchdog includes a remediation program expected to cost $20 million. payments to affected customers will range from $225 to $450.

strong sales are helping boost expectations for iphone sales. the company assembles a most apple smart and post it a night being percent jump -- and posted a 90% jump. it diversifies into business to focus on equipment tied to ai. bloomberg has learned cicc is planning to demote some of its senior bankers and cut their pay. it could lead to voluntary departures from one of the largest investment banks. cicc has told staff internally some individuals could lose their titles and be relegated to lower ranks under a new performance rating system. let's take a look at what is moving on markets at the moment. we are watching chinese tv makers, li auto has seen the volume rise to more than triple its average.

li auto rising strongly in hong kong, about 6.5%. geely auto, a little bit of softness is there. the high-end electric rent-a-car is seeking a raise up to $600 million in a public u.s. offering. japan closed today, so the msci asia x japan rising at the moment, up about .231%. our new show coming up next. this is bloomberg. ♪

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