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tv   Bloomberg Daybreak Asia  Bloomberg  July 19, 2021 7:00pm-9:00pm EDT

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♪ haidi: welcome to "bloomberg daybreak: asia." sophie: we are counting down to asia's major market opens. shery: from bloomberg world headquarters in new york, our top stories this hour, the reopening trade reverses, asian stocks to continue the global selloff as global virus worries feel a rush into havens.
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covid infections trickle u.s. travel warnings. dr. fauci pleads with americans to get vaccinated. the u.s. and its allies blame china for a range of malicious cyber activities. a count on to blastoff for jeff bezos, we are live at the blue origin space site in vanhorn, texas. a lot for investors to consider, let's look the asian open. sophie: plenty of headwinds driving a risk off mood. nikkei futures little changed after a five day drop and u.s. on the s&p gaining some ground on the benchmark the most as the vix jumped and the bond rally continues. we see that extend into the asia session. the aussie yield curve flattening in january levels with the 10-year back below 117
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the level we saw on february. a risk off tone amid peak growth concerns. we have an update from china due today. the offshore yuan trading at a one-week low. and with the safe haven bid we are seeing the yen at mid 109 levels. the covid situation in asean has been a concern. indonesia -and vietnamesestocks joined original downturn-. an index under pressure off 12% this month now entering a technical correction. we are seeing potential for downside with that testing the support level nd securities wrecking a break of support will be followed by a rebound. -- reckoning that break of support will befall by rebound. haidi:asean interesting for
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longer-term investors who whether the pandemic. -- weather the pandemic. when you're being selective about opportunities and value names in the world, which see more likely to survive the patching us in the recovery? >> for the markets, we believe more advanced countries in asia that if shown the ability to contain the covid virus relatively well and have good hospital capacities, i think those are safer places to be. i believe the recent corrections in some financial names in countries like korea, might be an opportunity where you might want to start, you know, looking
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, and start to gradually add. we don't think this turned can happen very quickly. but we do like the prices right now and if it goes down more than i think that will be a really interesting opportunity for the investors. haidi: what are the opportunities you see in korea? you said the cyclical rotation is doing pretty well and there are a lot of undervalued companies? >> yeah, so, for the first half year to date, the cyclical names have really performed well, whereas we think that more steady structural growth names have lagged. we actually believe in the individual names we can really find those companies, especially in the technology and, you know, advanced material sectors, where you can see companies really having a very, you know, strong
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structural growth runways, such as in semiconductor localization, and also in ev batteries. so, that is one area, where i think, you know, the companies are very interesting, in terms of the fundamentals, and, but evaluation is trading around 15 earnings, so very reasonable compared to other parts of the world. also more idiosyncratic opportunities in certain areas such as education or pharmaceutical companies, we see again, very strong convincing ideas for the long-term. so i think those are the areas. in the bigger areas, we still like the korea 70 names although -- semi names although it can be challenging for the next few months. going to next year we think we like the names. shery: what is your conviction
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in asean countries because they have lagged when it comes to vaccination and containing the virus. the gtv showing the difference between the singapore and philippine market. >> asean market is a country, you have to be really quite cautious of the moment, just because the capability of those countries to be able to contain the covid very effectively. but again, if you are investor, idc that, perhaps, the opportunity is, starting to rise, because of the lord prices. -- lowered prices. if you find a company that can have the financial capacity to whether the pandemic i think that is an opportunity, in addition there are some companies that actually benefit from the covid, such as some companies that actually has you
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know, fintech business in additional to the traditional banking business. and in that case you are seeing a very big growth in the fintech business because of covid. if there is an improvement in covid, your traditional banking business will improve. so there is a little bit of a hedge on both sides, and you can still ride on the structural growth wave. so i think that is a way to approach a some of thesesean -- these asean companies. 's turn to su keenan for first word headlines. su: we start with president biden who reveals what he told fed chairman jerome powell in a recent meeting. the u.s. president told the fed the bank should take necessary steps to combat rising inflation and ensure the economic recovery. president biden natick clear the fed is independent. pres. biden: my administration
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understands that if we were to ever experience unchecked inflation over the long-term, that would pose a real challenge to our economy. so, while we are confident that is not what we are seeing today, we will remain vigilant, about any response that is needed. as i made clear to chairman powell of the federal reserve, when we met recently, the fed is independent. it should take whatever steps it deems necessary to support a strong, durable, economic recovery. su: international monitors are growing more concerned over iran's expanding nuclear program as tehran refuses to extend an expired inspections packed. -- pact. they insist they are still preserving those for the international clear energy agency and it is accurately documented. it says it will not allow inspections until negotiations to restore the 2015 agreement
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are completed. republican lawmakers are urging u.s. olympic committee to for bit american athletes from using china's new digital currency at the 2022 beijing winter x. -- winter olympics. they warn the token could be used for surveillance of chinese citizens and those visiting on an unparalleled scale. there is concern it may be used to challenge the u.s. dollar is the world's reserve currency. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: the u.s., u.k., and allies, formally tied the microsoft exchange hack to the chinese government. they accused beijing of a broad array of malicious cyber activities. pres. biden: they are still determining exactly what happened. the investigation is not finished. my understanding is, the chinese
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government, not unlike the russian government, is not doing this themselves, but they are protecting those who are doing it. and maybe even accommodating them, being able to do it. shery: let's bring in our cybersecurity reporter. how significant is this condemnation from the u.s. and abroad are alliance including the u.k. and austria? >> it is significant in that this is -- a broader alliance including the you ok -- a broader alliance including the u.k. and australia? >> it is significant in that it is asserts china has been harboring malicious cyber activity that have compromise public and private networks the world over including health care, any factures, state and local governments, intelligence used to run the global economy. for years we have speculated that russia especially had been behind the most damaging
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financial attacks, ransomware. but this, for the first time, explicitly out the chinese government, specifically the ministry of state security, as an endorser of similar activity for both cyber espionage and --. haidi: what we see allies doing about this than? >> that is a very good question. so far, and initial indictment in u.s. federal courts has been filed against for members of china's ministry of state security. this indictment will be litigated in u.s. courts. it is entirely likely those for individuals will never see the light of day in american courtrooms. so far it is identifying china as a malicious actor and directing this illegal system to litigate the matter against these four individuals, issuing
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a warning to other malicious actors that the u.s. is monitoring this activity and willing to prosecute anybody who does not abide by u.s. law. haidi: r bloomberg cybersecurity reporter. organizers of the tokyo olympics say it will be the most sustainable games yet. next, the u.s. warns citizens not to travel to the u.k. and indonesia amid a spike in cases. this is bloomberg. ♪
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haidi: the top infectious disease expert in the u.s. is not ruling out new virus restrictions in the coming weeks.
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case numbers are rising. dr. fauci spoke with bloomberg. >> we are seeing now in this country a significant uptick in infections, particularly in those areas of the country, states, cities, regions, counties, that have a low level of vaccination. whereas, in contrast, in areas with a higher level of vaccination, we are seeing less of enough tech. -- less of an uptick. among unvaccinated people that is a significant risk. please, if you are not vaccinated, seriously consider getting vaccinated. this is a nasty virus, particularly if you're unvaccinated. >> i want to be precise. it was said by an administration of for show, this is a pandemic of the unvaccinated.
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you can get the disease, the virus, even if you are vaccinated. but the point is, it is a hospitalization and critical illness of the unvaccinated, is that right? >> that is true. let me fine-tune it a bit if i might. the vaccine still protects you against infection, but not completely, not nearly as well as it protects you against clinically apparent disease. so, if you compare the vaccinated with the unvaccinated , just getting infected with no symptoms, you are much better off being vaccinated that nonvaccinated. the real difference is seen, when you are vaccinated, if you do get infected, versus if you are unvaccinated and get infected. you are very highly protected against severe disease if you are vaccinated. whereas, if you're unvaccinated, then, you have a reasonable
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chance of getting into trouble. shery: dr. anthony fatty speaking -- dr. anthony fauci speaking with david westin. and officials updated travel warnings for the u.k., and indonesia. let's get the latest from bloomberg senior medical reporter michelle cortez on these warnings and what is driving them? >> the u.s. is concerned about the spread of the virus, the delta variant. they are urging americans to not go to places like the u.k. and indonesia. they raised the level to very high to not travel to those locations. in india are there had been a significant outbreak earlier this year, they are lowering that risk, because india is starting to get the virus under control. but we are still very concerned about how much infection there is circulating in the world.
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the u.s. is saying to people, be very cautious about where you go and when you go. haidi: we heard from dr. fauci, essentially pleading with americans to get vaccinated. are we seeing progress in these states where vaccine levels have plateaued? >> there is a very slow progression of vaccination in some of these places. you would hope as people are seeing the infections are occurring in people who have not been vaccinated, we might see in uptick. we are starting to get numbers about how potent these vaccines remain against the delta variant and it is pretty dramatic. in new jersey, 99% of hospitalizations and deaths are in people who do not have vaccinations. out of four point 4 million people who are vaccinated, just 31 have died after getting vaccinated. they are still seeing 500 infections per week. the vaccines really are very effective. it is a matter of getting the
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word out to people and condensing -- convincing them they are safer getting vaccinated than taking their chances with the delta variant spreading rapidly. haidi: bloomberg senior medical reporter michelle cortez. next, the count down to jeff bezos'trip to space, we will be on the ground in vanhorn, texas. this is bloomberg. ♪
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haidi: we are counting down to the first launch with crew by blue origin which will send jeff bezos to space. ed ludlow, there is not a lot going on around you but tell us where you are and what we are
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awaiting? >> this is westech six -- west texas, population of 2000 here in vanhorn. typically you would find mining and ranching and agriculture, not a spaceport. not where you would expect the world's richest man to blastoff from. but it makes perfect sense, mostly sunny days, plenty of open space. the launchpad is 40 miles from where i am now. the road is going to be closed by the texas department of transport, as a safety parameter. it is unusual, i spoke to a load of townspeople today and they said sincerely, this is the most exciting thing that is happened to them in their lifetime, the world's richest man blasting off a few miles away. shery: what today expect for launch day? >> it is a shorter experience than virgin galactic, for example, last week.
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it is an 11 minute flight. the new shepard booster generate thousands of pounds -- i hundred 10,000 pounds of thrust and will send -- 110,000 pounds of thrust 62,000 miles above earth. they will have a few minutes for weightlessness. they will be given a 32nd warning to buckle up and get back into their -- they will be given a 32nd warning -- 30 second warning to get back into their seats. they will have five jesus on the way down and just before they hit the ground, a burst of air from an air thruster. so they have multiple parachutes and they gently touch back down in the desert. haidi: the inevitable coverage and comparison between the billing a race to space. when you take a look at
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longer-term ambitions of jeff bezos, richard branson, how do they differ? >> blue origin has been at distance 2000, when the comedy was founded. progress for them has been stashed when the company was founded. -- progress for them has been slow. they had a narrow focus of spending paying customers up to space. but that has changed. they want to compete with spacex and boeing in terms of taking up payloads into orbit, for nasa, for the pentagon, for paying satellite customers. they want to talent spacex for the lunar landing mission in 2024. spacex was awarded the contract blue origin appealed it. bezos has an image of a human race and space, the idea natural resources on earth are finite so he wants to be able to go out to the galaxy and find natural resources, and fossil fuels on other planets. shery: what are the risk,
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long-term in that vision, or short-term, in the lunch date tomorrow? >> what is astonishing, the coverage around this has been intense because it is jeff bezos, the world's richest man. this is the 16 flight blue origin will have done in its history. spacex has done 122 on falcon nine alone. they said all they wanted to do was to successful flights without humans, which they did on the same rocket easter and capitals -- and capsule, which they have done. and they would be ready for humans to go up. they have much less experience. the risk is the weather. this is an autonomous process. there are not overrides astronauts can do. it is less tested than space x. jeff bezos is putting his money where his mouth is and putting himself in the situation for the
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astronaut experience. shery: ed ludlow in vanhorn, texas, our west coast reporter. with the latest on the launch our special coverage of the blue origin launch starts at 8:30 p.m. hong kong time in 8:30 a.m. on the u.s. east coast. you can also turn to your bloomberg for more on this, tliv has commentary, market analysis from bloomberg expert. plus -- experts. plus or on the evolution of the space industry, within -- with another guest, tracking debris and low-earth orbit. haidi: headlines, a brazilian mining giant produce less iron or than expected. the world second largest producer turns out 76 million metric tons compared to an estimated 78 alien tons.
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a major market swing factor --remains high despite titus push to curb emissions. --close its adelaide casino. the south australian government moved to alert level for in response to for community cases. sky city will remain open for existing hotel guests and new zealand cross -- properties are unaffected. -- start labeling health videos with a move on how authoritative the source is, days after president biden address social media disseminating disinformation. also displaying videos more prominently when people search for health information. a china platform is said to be pausing its u.s. ipo plans as china scrutinizes overseas listings and cybersecurity. the alibaba-backed company is awaiting guidance from regulators.
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it will join chinese e-commerce platform little red book and setting aside listings after the follow-up from didi global. more to come here on "bloomberg daybreak: asia." this is bloomberg. ♪
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>> we have breaking news out of japan. we have the latest numbers for june. the headline number is growth of .2%, in line with expectations and growth from a contraction disinflationary pressures in the past month. excluding fresh food, the growth is .2%, in line with expectations. a slight exploration --
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acceleration from the previous month. contract of .2% is similar to the previous month. core cpi being supported and it has been a gain of .2% year on year. going forward given that we have the renewed state of emergency in tokyo, we could see prices be further pressured. at the moment we see the japanese yen holding at an eight week high against the u.s. dollar. >> ahead of the open in tokyo, singapore opened the downside after a four day drop amid the risk -- morgan stanley saying they do not see a drop in the 10
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year rate below zero. monday the 10 year u.s. yield was pushed. some traders consider if 1% might be insight for the u.s. 10 year yield, a level not reached since january. looking at the chart, the yen trading near an eight week high. a head and shoulders formation. should there be a deep risk aversion, the yen could outperform. shery: delta ovarian sparking concerns over economic growth and davey cosman spoke with
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bloomberg about which companies have done a fitted from the decline -- have benefited from the decline in interest rates as well. >> economy and revenue are growing. the story, the risk in 2022 is rates. taxes, both corporate and capital gains taxes are the big risks. as we sit here in the next 90 days, the dominant narrative will be washington discussions about higher corporate taxes, which would lead to negative earnings revisions across most markets in the last part of the year. our forecast is that the consensus is 212. most analysts have not embedded higher corporate tax rates. and there are higher tech -- capital gains rates.
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that has typically been associated with lower valuations. so we are cautious. >> companies have a ton of money on the balance sheet. what will they do with it? what is the investment thesis because of that? >> mergers. 1.9 million -- one point $9 trillion -- $1.9 trillion in the first seven months of the year. looking at companies looking forward, that will likely be a reasonable amount of their money. concerns about antitrust will cause boards to reflect on if they are likely to get approvable -- approval from the
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government. they will be cautious. that will tilt more toward capital. organic growth is a growing business. i would say risk on a regulatory fund would be a headwind. a lot of cash is significantly. from a strategic point of view it perhaps we'll have a slight shift in favor of the private equity bids in the market as opposed to existing corporations . i think the antitrust is a significant variable of uncertainty in this environment. haidi: china's prime rate could be lowered for the first time since last year, a sign of further support for their swelling economy. it could indicate a change in pboc policy. let's get more.
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we heard from the china securities general earlier saying the survey suggests no change but spread more broadly, is this a sign of broader based easing or just another tool the pboc market is deploying? >> i think the markets general consensus is it could be mostly a fine-tuning of chinese policy rather than the beginning of a cycle. shery: what did the rrr cut recently mean in terms of signaling? >> this -- bloomberg consensus is looking for a way for china to keep the rates steady but there is a small group of
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investors and economists looking for a cut and that is where the rrr are coming because when china announced that cut their reason was it was designed to help small business squeezed by certain commodities. the lower the rrr, barring banks offered to their best customers, would be the most straightforward way for the banks to pass the cheap cost they received to businesses. so that is why some people are looking for a cuts. but there is also strong argument against the cut, mainly because china made it clear it was not a major turning of policy, rather a liquidity management. in sensually, a lot of -- essentially, a lot of outflowing.
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this is basically a technical move. and company data has been better than expected when china surprised the market with a rrr cut. industrial productions exceeded expectations. so this is's engineering of chinese monetary policy and trying to offered insurance in the second half of the year. but so far, the economy is doing fine. haidi: a preview of what we can expect from china. we will have more.
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let's get to su keenan in new york. >> center of disease control is warning americans to avoid travel to the u.k. with a possible surge in covid-19 cases. the cdc travel warning is at the highest level after the u.k. was to have freedom day, fully reopening the economy. the u.k. added more than 100,000 new cases during the weekend. and vaccine certificates are going to become a requirement there starting in september. boris johnson delivered the news after his exposure. >> the roadmap we hoped, i said
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that from the get-go, but we could not guarantee it. this changes our calculations. there could be a new variant of the virus. i have always been clear about that. >> leon black has revealed details about text messages and personal conversations as he denied sexual assault charges. he filed a 52 page detailed document rebutting rape allegations. he now admits the pair had an affair but he said it was consensual. he also claimed she threatened to go public about the relationship and less he paid her $1 million. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.
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shery: robinhood is setting it site on a valuation short of highest analyst projections and ipo. crystal, what do we know? >> robinhood set terms today and the valuation is at the top and, 35 billion. we know they are looking to list on the nasdaq on july 29. there will be some investor presentation saturday when they speak with investors and users and by the end of next week there will be a listing. what's interesting is they are locating a huge amount -- allocating a huge amount of stocks to their own users. haidi: what is their environment
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for being able to reach this high valuation? being as how ipos have not done well in the u.s. recently in the fall back in trading? >> and today's not a good day. all the major indexes in the u.s. are down today. what is important is the long-term growth. they acquired a lot of volume in the past year because everyone was staying at home, trading stocks. but whether the growth can continue into the second half of the year is a bigger question and more important than if the volatility will deter the ipo roadshow. so i think that is what investors are looking at. but mean star has been going strongly for almost a year now and because of the volatility
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and retail involvement in the ipo, they could have it themselves that's what they said. so it is an interesting experiment to see if they themselves turn into a mean stock. haidi: we have movement when it comes to santos and oil stocks in the start of trading in sydney. santos has confirmed they made a merger proposal, saying the offer implies a $4.25 aussie per share, saying shareholders would get 0.89 shares. they say they believe the proposal is an extremely attractive opportunity. this comes as oil is in an embattled state.
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there were complaints about behavior. chairman wrigley said they received a nonbinding takeover. much more to come. this is bloomberg. ♪
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haidi: when tokyo was first awarded the olympics 10 years ago, they hoped to showcase a hydrogen society to the world. the pandemic has thrown a wrench in the green ambitions. allie, what was the original clean objectives for tokyo? >> you mentioned when tokyo was awarded the games, it was just a few months after the earthquake and tsunami in 2011 and they were keen to use the olympics is a showcase for transforming energy systems and realizing a hydrogen society. shery: so much has changed. how has the plan changed?
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>> the good news if we can call it that is that this will still be the first olympics ever where they will be fueled by hydrogen, which is primarily sourced by the site of nuclear accident in 2011, fukushima you -- fukushima. but the challenge is with the lack of spectators, consumers do not get to experience the technology firsthand. the silver lining is that means the emissions will be more criminal organizers have done a fantastic job of hitting their sustainable goals. electricity will be primarily
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sourced from renewables. metal will be produced from recycled materials from things like cell phones. shery: the next guest says when it comes to be olympics, claims of sustainability warrant healthy skepticism. he is the author of two best sellers on the games. great to have you with us. do you expect this olympics to lead -- leave a legacy of sustainability? >> as with all olympic games, there is a lot of pregame hype about the green changes that will come to the country. the follow-through is always the trick and as the previous guest noted, they are already falling short on a number of claims. this isn't the first time.
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i live in rio de janeiro and at that time people promised to have 80% of the water being flown into the -- flowing into the bay be treated and it was 25%. so there is a lot of aspiration but not necessarily verifiable between projects. haidi: do we go back and reassess what has been done? how much looking back and evaluating in hindsight are we doing about past olympics? >> that's a great point you are making. too often we just jump to the next game. the switzerland-based group that oversees the project, included. it would make sense to figure out what the best practices were and what could be brought forward. but most countries rely on a different composition of energy
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sources. in japan, nuclear is big, even in the wake of the milk leon -- wake of the melts down. so looking back and help but it would also be great if we had outside independent sources who looked at the goals set with each olympics and how much they followed through. put in the final report in the tokyo games issued in advance, there is a whole lot of future tense involved, not past tense of what they did, but future tense of what they hope to achieve. and there is powerful symbolism, when you look at the cauldron or the metals that are made out of recycled cell phones, but beyond that, the brass tacks programs is where you can make a difference environmentally and often that is where the olympics fall short. haidi: aspirational is a nice way to put it. some will just say this is greenwashing. how readily do people forgive a lack of accountability because
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of the allure of the olympics? >> i'm glad you brought the word greenwashing into the conversation. i think it is legitimate to talk about that. talking a big green environmental game and making big promises and having little follow-through. i think a lot of times people get caught up in the promised part and think the olympics are doing all these things, when in reality they are not. it becomes a luxury to follow through with environmental promises, whether in rio or using the pandemic as an excuse to not follow through with practices you outlined in your original plan. i wish people paid more attention to it and i think you are right, greenwashing is the correct word to use here. haidi: environmental issues is one thing, and diversity and representation is something else. olympics have come under
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criticism, tokyo says they will be the most diverse games. is there a way to be accountable when it comes to that claim? >> when they say that, they deserve credit for almost achieving gender parity at the olympics. it is not quite 50-50, but it is close. besides that, there is not that much to point to. of course that will be diversity, there are 200 countries contributing athletes. but the question is, what about the diversity on the international olympic committee? they only started allowing women to join in 1981. even today, more than 10% of the 102 numbers on that committee are royalty of some fashion or another. so in terms of diversity, the ioc could model it better themselves in order to make it happen at the games. shery: tokyo's governor last
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week said these would be the most gender balance games since olympics started. we will be watching. thank you for joining us. we are counting out to the start of trading in tokyo. toyota has post their olympic tv ads. one concern is the covid infection is spreading across japan. health ministry now approving some antibody cocktail's to treat. we will be watching canon after they boosted their operating income earnings to -- due july 28. plenty come. this is bloomberg. ♪
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shery: futures across asia pointing to a lower open. sophie: in tokyo we are watching earnings actions for canon. stocks have been under pressure this year. we might see a boost after japan approves and antibody cocktail to treat nonserious covid. in australia, bhp registered a strong june quarter.
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let's keep an eye on australian retailers. a caution that the latest lockdowns are tougher on the industry than previous ones. we could see some consumer -- haidi: coming up, a preview of prime rates. we will have more markets inside -- insight with david charles. and markets are open in sydney oh and tokyo. next up, delta is wearing on sentiment. we continue to see a rally
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across the bond market futures across australia, and hong kong and japan down about 1% and u.s. futures are trading lower, as well. this is bloomberg. ♪ (announcer) back pain hurts,
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shery: welcome to "daybreak asia." haidi: take a look at the major market openings across asia. our top stories. asia stocks sent to continue the selloff due to geopolitical worries and spac volatility.
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washington blames china over the microsoft tack. plus the count down to blastoff for jeff bezos. we will hear from the man who designed the new -- the blue shepherd rocket. reporter: nikkei is off more than 1%. the spread of the delta variant has dampened risk appetite in the region abroad across the globe. we are keeping and. -- we are keeping an eye on earnings. japan approved in antibody cocktail to treat serious cases. cpi data from japan -- we are seeing the yen hold around that mid 109 level. we have some room for appreciation. f risk aversion picks up even more, the yen could outperform
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the dollar. checking in on the open for the kospi this morning, we are seeing downside moves for the benchmark in south korea after a two-day drop area the korean won is on the back foot. keeping a close eye on korean pharma names as citi points out some experts believe that the coronavirus will become endemic. they say south korea has the potential to become a major vaccine producer. we're keeping an eye on santos shares, and all market share proposal. on watch, under pressure, even after it provided a stronger outlook for iron ore shipments. retailers are on watch with morning because of a lockdown impact playing out in bond markets, with the aussie yield
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curve flattening ahead of the rba meeting tuesday. 10 year treasuries are coming back online above 120. relatively steady. we sought yields fall. we are seeing oil prices a steady after sinking monday amid the broad de-risking and even as strategist continue to see a tight market for crude. shery: our next -- guess is overweight in india, japan, and singapore. we will discuss why with david chow. i understand korea, japan, and singapore have done pretty well in reining in the pandemic, but not necessarily when it comes to india. what is driving your calls? guest: for korea and japan, the economies are quite cyclical in nature. we continue to be overweight on the reflation trade. asia will continue to have a consumption boom, perhaps in the second half of this year as a
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vaccine start to pick up in those countries. india actually has done a pretty good job in being able to clamp down on the most recent rise in the infraction rate there. -- infection rate there. shery: david, mark greenfield just made this point on japanese equities, that they failed to make the most of a weaker japanese yen. now we have the safe haven demand move. did japan miss that opportunity to rally more than it could? guest: i think there is some of that. japan had a bit of a missed opportunity in that respect but there were some of the broader components in play, for example with the uncertainty about whether the olympics was going to happen. there was that overhang. that is being pushed for. feel epics will ultimately prove to be a somewhat -- the olympics will ultimately prove to be a
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somewhat successful event that could be the catalyst to boost japanese equities. haidi: if we see easing signals out of the pboc, is that a buy signal for chinese stocks? guest: i do not expect a cut to the one year or five year in china today. but i do think there is a pivot and monetary policy in china. and that certainly is a more positive backdrop, a positive macro backdrop for chinese equities. i think there is a little room to run for chinese equities, especially if investors pivot out of countries that are experiencing a high covid level, into places like china or other places in apac that of contain the virus successfully. haidi: what about the tech sector? are you bullish on trauma -- on hong kong and shanghai?
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or is there regulatory uncertainty? guest: the tech sector will continue to face a significant regulatory overhang. in the meanwhile, this could last perhaps for another few months, perhaps to the end of the year. what it really needs is for senior leadership to come out and actually say that the tech sector continues to be a very important sector of the economy and that they continue to want the tech sector to flourish. i think that would be sufficient enough to really boost the tech sector. i'm not sure we will get that comment out of beijing, but that will be one thing i'm watching. in terms of the u-turn of ipo's, i think that trend will continue. many adr companies listed in the u.s. are certainly having boardroom discussions about potentially doing a u-turn back to hong kong. i think hong kong -- the hong kong exchange is a very bright future. haidi: david chao, great to have
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you. let's get to su keenan in new york. reporter: thank you, haidi. we start with president joe biden who revealed what he told jay powell in a recent meeting. he told the fed chair the u.s. should take necessary steps to combat rising inflation. he also made it clear that the fed is independent. >> my administration understands that if we were ever to experience unchecked inflation over the long-term, that would pose a real challenge to our economy. so while we are confident we -- we are not seeing that today, we will remain vigilant about any response that is needed. as i made clear to sharon powell, -- to chairman powell, the fed is independent. it should take whatever steps it deems necessary to support a strong, durable economic recovery. reporter: to covid concerns.
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the cdc is warning americans to avoid travel to the u.k., if possible, because of a surge in covid-19 cases. the cdc travel warning is now at the highest level. the advisory comes a day after the u.k.'s so-called freedom day, a lifting of pandemic related restrictions to market full reopening of the economy. data shows the u.k. added more than 100,000 new cases during the weekend. also in the u.k., vaccine certificates are set to become a requirement to enter nightclubs and other large indoor venues, starting at the end of september. the prime minister, boris johnson, delivered the news from video link from else -- from self-isolation after he was exposed to the nation's health minister who tested positive for covid-19. and finally, a female u.s. gymnast has tested positive for covid during a pre-lim pick training camp northeast of tokyo. olympic officials declined to name the specific gymnast,
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saying only she was in her teens. two other athletes from the south african soccer team have also tested positive inside the limbic village. this, as cases died of the games continue to rise. the opening ceremony is set for friday. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haidi: --shery: still ahead, we will get you a preview of the china loan rate announcements. but up next, the u.s. and u.k. blaming china for microsoft server hack earlier this year. we have the latest. this is bloomberg. ♪
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haidi: the u.s., u.k., and their
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allies have formally tied the microsoft tech to the chinese government and accused beijing of a auto ray of malicious cyber activities. >> we are still determining what happened. the investigation is not finished. my understanding is the chinese government, not unlike the russian government, is not doing this themselves, but are protecting those who are doing it. and maybe even accommodating them. haidi: our exec at a better joins us now. have we had any reaction from beijing? reporter: we haven't had any reaction directly to these accusations so far. in the past, you will remember that in the alaska meeting, the foreign minister called the u.s. the world champion of cyber hacking. i would expect rhetoric of that
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nature this afternoon when the foreign ministry has its daily press briefing. of course, when microsoft links chinese hackers to this hack a few months ago the chinese government strongly denied it. shery: this is the latest escalation when it comes to geopolitical tensions, not to mention other at allies -- not to mention other allies like the u.k. industrially. how significant is the condemnation? reporter: i think the participation of the allies along with washington and nato, that speaks to how joe biden is approaching the relationship by building this alliance to take on china, which in beijing's point of view seems like building an alliance to hold beijing down. that has ashley caused a lot of constant -- that has actually caused a lot of consternation here. shery: our greater china executive editor.
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haidi, i was saying this is the latest when it comes to the geopolitical tensions. and when it comes to the growing scrutiny of chinese firms listing in the u.s. or by chinese authorities themselves about these companies listing here in the u.s., sources now telling bloomberg that a chinese home services platform is pausing their u.s. ipo plans. haidi: we know the cautionary tale of didi global. they are still trading well below 20% of first daytrading. this first -- this still feels like there are so many fronts of confrontation and resentment being set up in this relationship. we continue to see investors try not to end up on the wrong side. this has been such an interesting year for ipo's. you have robinhood to getting ready to come online. that will be very interesting to see whether we get a positive
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reception given all the uncertainty facing the market. shery: and not just investors getting caught in the wrong side, but wall street banks were such a huge source of profits in handling all these chinese ipo's -- now those opportunities may wane. haidi: we keep talking about it but we will have to wait and see if this is really a boon for hong kong as a financial center. i think they could really use it , if they managed to get the benefit of this. coming up, i love the story. jeff bezos set to launch into space aboard his blue origin new shepard. we will hear from the person who designed that rocket. . this is bloomberg. ♪
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shery: take a look at canon right now. wears argument gains we are not seen since the likes of january set -- january or so. we're seeing other peers also gain, given canon's rays to profit outlook. we will watch the stocks very closely. let's return to the space race. we are counting down to the blue origin rocket launch that will send the world's richest person to space. ed, what should we expect on this huge day for jeff bezos? reporter: it is a huge day. 11 minute journey, hundred thousand pounds of thrust putting them under immense g force for a few minutes of weightlessness. they will be instructed to unbuckle their harness. they can do somersaults in zero gravity but they will be given a clear 32nd warning to uncle up
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because the gravity will pull the capsule back down and they will be at 5g's on the way down. it is immense pressure. the right of a lifetime, i am sure. haidi: what happens after this? we always talk about the billionaire space race, jeff bezos, elon musk, and of course richard branson, who beat jeff bezos to it. they have different long-term goals here. reporter: this business is supply constraint. blue origin said there are a lot of willing, paying customers out there. they will not put a price on it. they do plan a second and their launch in 2021, the next one being at the end of september. blue origin is building engines for other rocket companies. it is competing with spacex for nasa contracts. this is really the tip of its ambitions. it is just the most visible because the world's richest man is actually going to be in the seat going to space.
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shery: -- haidi: what's the mood in this tiny town. whatever seen from jeff bezos itself? reporter: he has done a lot of media. he arrived in the press room of blue origin delivering food. he has been on camera pretty much costly since he started his two days of training over the weekend. he seems completely relaxed and at ease. lou origin has only fund 15 tests flights. you compare that to spacex, they have done 122 on the falcon rocket alone. that is not a lot of experience but he seems relaxed. he seems ready to go into space. shery: joining us from vanhorn texas awaiting us that -- awaiting that very exciting launch. in the meantime, we do have an alert on bloomberg china coming out with a statement on the
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cyberattack allegations from the u.s., europe, as well as other allies. that they are ungrounded. remember, this is after the u.s. and allies like australia, new zealand, not to mention japan formally treated that the microsoft hack is affiliated with actors affiliate with the chinese government. we are getting a reaction from beijing saying the eu/nato's allegations on cyberattacks are ungrounded. we will continue to follow the story, as we see rising tensions between not only the u.s. and china but also between the western i allies. we have seen the repercussions already for australia. when it came to voicing those concerns about the source of the coronavirus pandemic, really we cannot imagine how much more fire this will add. haidi: a lot of critics of canberra's approach said perhaps
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it would be better to wait for safety in numbers, for leadership from the big allies, so continue to watch that. it is just one pace of the patchwork causing tensions between the west and china at the moment. we will continue to talk about blue origin, as the designer has high confidence in the success of the launch. he says there are multiple failsafes for any possible issue on the eve of jeff bezos's trip into space. >> i am feeling very confident we will have a safe launch. i am feeling very proud to be a member of the blue origin team. >> you're in charge of the design of the rocket. tell me what your level of confidence is that tomorrow will go 100% as planned. >> we have high confidence. not just because we have flown
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it successfully 15 consecutive times, which is a rarity for a brand-new vehicle to fly successfully 100% of the time. we have done so much tests and analysis on the ground, the public sees the flight tests and we described as they tip of the iceberg. they see what floats above the water, but below the water we have done hundreds of tests on components, on the engine, on the simulation. it because this high confidence it will be successful tomorrow. >> hours leading up to launch, where you on your safety checklist echo -- checklist? >> pretty much in terms of what we need to do before launch is done. right now they are doing up final preparations of the vehicle. we've cleared all flight constraints. we will be rolling out tomorrow and executing the procedure by the book. >> the big question is whether -- big lunches don't always happen on time. we were told weather looks good,
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but thunderstorms have been moving in. we drove through a lightning storm leslie to get to you. what is the weather looking like now? >> the weather forecast is looking good right now but that could change. we continue to monitor the weather. at the forecast is change and become unfavorable, there is a risk of delay. >> what is the backup window if it happens? >> we go day for day. >> given you are so involved in the design, talk to us about the design itself. what is it that makes you believe this is the absolute best and most safe vehicle for jeff bezos and your first human flights? >> the foundation of the new shepherd systems safety is to fault tolerance. that if something goes wrong, there is a backup system for that. and in most cases there is a backup to the backup. it is called two false tolerance, meaning that we can suffer any two random combinations of two human errors or failures and still get people
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to the ground safety. i will give you a few examples. the most prominent one is the crew escape system. there something wrong, it is detected on the booster that any moment we could ignite a rocket motor that will send that counsel -- the capsule to safety. another example is there are three parachutes on board. they have always worked. we have always worked. we've never had a failure. but in case one of the parachutes breaks weakest is to land safely. every mechanism, battery, computer, every wire, even, has a backup. shery: blue origin new shepard designer there. john miss our special coverage. -- do not miss our special coverage. you can also turn to your bloomberg for more in this.
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tliv has commentary and analysis. haidi: plus we will have discussion with an indian startup that developed surveillance systems for checking to paris and satellites. the space race is becoming very global. haidi: very global, very interesting. it seems very glamorous but we know there is so much uncertainty and a great deal of waiting around that is involved with that. let's get a quick check of the latest business headlines. firms controlled by million are being probed by india's finance ministers. the investigation is related to compliance with securities rules, but they did not elaborate on the company's being probed. last month, shares tanked after local maleah -- local media reported irregularities
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involving three funds. ibm reported its biggest sales increase in three years, beating estimates from the back of strong demand. revenue rose 3%, almost $93 billion, signaling that the pivots of the cloud is starting to pay off. the ceo took over at the end of the pandemic. since then the company has spent $3 billion to bolster its cloud and ai capabilities. china evergrand is said to consider it hong kong -- consider a hong kong ipo. we are told they are holding discussions with investment banks for a potential listing next year. china's most indebted real estate developer has been selling off equity and nonprofit he asked -- non-property assets. robin hood is facing a $35 billion valuation in its u.s. ipo, just a short of the highest projections. according to filings, the company will market 55 million
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shares for up to 42 dollars each. robinhood plans to break 2.2 billion. it will make it the fifth biggest ipo in the u.s. exchange this year. much more to come. this is bloomberg. ♪ (announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back, obliques, hips, and glutes. get incredible results in just five to ten minutes a day. the aero trainer supports over 500 pounds, and inflates and deflates in seconds. check it out at aerotrainer.com. that's a-e-r-o trainer.com.
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shery: marcus across asia are under pressure. let's turn to sophie for what to watch. reporter: that broad risk optimism is continuing with asian stocks lower. japanese stocks are lower for a fifth straight session with the nikkei at a january low all the yen is holding at that mid 109 zone. this has we do see that risk aversion lifting haven assets. when it comes to bonds, apec bonds extending gains with the
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aussie, the 10 year yield pushing below 118 ahead of the rba meeting minutes. not exciting further declines for u.s. yields as we do not see the fed altering its lose policy. let's take a look at oil. do bti and brent are stabilizing after the big drop on monday. even as markets are just debating supply tightness to consider -- to continue -- even as markets are considering supply tightness to continue. we do have financials weighing on the regional indexes. canon shares in tokyo jumping after it boosted its forecast. we do have bhp group under pressure. this is covid remains a challenge for chilly, signaling iron supply could be softer and
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warning restrictions from china on aussie cold -- coal could remain for a of years. haidi: all right. china will update on its loan prime rates in about an hour. economist are expecting note change. this comes after the pboc cut the rrr. that was a surprise. our next guest thinks that has to do with long-term monetary policy reform. great to have you with us. i want to start this chat to just kind of get a bit of refresher to the multiple options available to the pboc. is it more likely they will continue to periodically tweak some of these targeted measures? guest: hi, haidi. yes, we will see in lpr announcement today in respect the five-year and one year to remain unchanged. talking about the toolkit, i
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think the rrr cut last week signals a move towards long-term monetary reform to guide markets to focus much more on the price based monetary policy, which is a benchmark. rather than rrr or liquidity management. as well as well seven-day reverse rebels. those three constitute in my opinion management tools and benchmark policy rates will be much more in focus going forward. haidi: what are we seeing on the loan demand side? guest: we are seeing a pickup every look at credit -- if we look at credit. we are seeing loans grow at a stable pace at around 12.5%, even though we are seeing some flow down and moderation in bond
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insurances from corporate and government for the first half of the year. the pbs a isn't -- the pboc is maintaining a stable loan supply. shery: tell us a little bit about the recovery. we continue to talk about how uneven it has been. with the latest retail sales numbers, are you more confident this is evening out on the consumption side of things? guest: it is little mixed. from the headlines we've seen that 7.9% of gdp growth is perhaps a slightly lower than expected. but if you look at june, we are seeing the acceleration of retail sales, even though we are phasing more covid outbreaks in guangdong province. it does not seem to have much impact on the consumption side compared to the previous few rounds of outbreaks. that gives me more confidence to think the recovery going forward
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might be more balanced, as we expect consumption recovery to continue to pick up its pace. especially when china is also accelerating its vaccination rate, which allows the economy to reopen further. shery: taking into account china's growth and the monetary policy stance and the recent geopolitical tensions with u.s. that we continue to see, where you see the chinese yuan versus the dollar? guest: i think for the outlook for the yuan, it is much more balanced from this standing point. on one hand, from a trade flow perspective, we do see continued outperformance of export, which is supported by the developed economies and strong consumer demand. so that is supportive of the yuan in the medium-term. on the other hand as you pointed out, we do have geopolitical
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tensions between the u.s. and china that will weigh on consumer sentiment and also we are talking about tapering for the second half of the year. we do expect a flow back into the dm, so that could weigh on the yuan. so we are seeing a relatively stale dollar-yuan rate until the end of the year, -- relatively stable dollar-yuan rate until the end of the year. haidi: we just had response from the chinese side about the chinese being responsible for the microsoft exchange hack. this is coming from the u.s., europe, and the allies. i'm wondering the geopolitical tensions, how much does it have on the domestic economy? it's not just this, it's tensions over hong kong, as well, over xinjiang. will we see that weighing? guest: i think the geopolitical tension is centered around
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political tension at this point of time and we are still seeing an anchor of u.s. china relationship making progress, albeit very slowly. but they are making progress. the economic ties not completely broken. we do not expect fundamental stress to china's growth recovery in the near term, but we do think the technology tensions, as well as the political tensions, will affect china's long-term growth potential, especially when it comes to technology. shery: we have more analysis ahead on what to expect on the lpr front. but first, let's go straight to lima, peru. we have breaking news. they have now proclaimed that pedro coetzee is the next president -- pedro castillo is
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the next president. this is by the electoral board after six weeks of uncertainty. we are seeing revisions and allegations of fraud. finally, peru's electoral authority has proclaimed the winner of last month's election is leftist pedro castillo he won by a marrow -- a narrow margin. jacob fujimori, the rival candidate, and her biggest admission of defeat yet, so she will recognize the results of the contested presidential election. we will watch peru when it starts trading in the new york section -- session tomorrow. we saw huge gains last week. plenty more ahead. this is bloomberg. ♪
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>> this is daybreak asia. i'm su keenan with the first word headlines. we start with the u.s. and vietnam which have reached an agreement which will allow more flexibility in vietnam's currency. the understanding eases a dispute and with -- in which the u.s. discussed proposing tariffs on the asian nation after the trump initiation labeled vietnam's currency actions restrictive.
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vietnam's central bank says it does not use the exchange rate to create a competitive advantage. lawmakers are urging the u.s. olympic committee to forbid american athletes from using china's new digital currency at the summary trying to beijing winter olympics. they warned the token may be used to surveilled chinese citizens add those visiting china on an unprecedented scale. the chinese digital yuan is still in the trial phase, but there is concern it could be used to challenge the u.s. dollar as the world's reserve currency. and credit chinese cities, including beijing, are warning of a new power outage as historic demand and supply shortages strain energy grids. electricity users have been told to expect digital disruptions in order to avoid overloading networks. they oversee 11 provinces and they reported record demands and peak surges last week. the demand comes as temperatures
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soar. and international monitors are growing more concerned over iran's expanding nuclear program as tehran refuses to extend a risk -- extend ends -- extend an expired inspections packed. iran insisted is actively documenting nuclear activities. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haidi: more concerns amounting ahead of the start of the tokyo olympics on friday. another athlete, agenus from the u.s., testing positive for covid-19 while training in japan. our tokyo bureau chief joins us for the latest. are there any implications as we continue to see these cases?
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reporter: the number of positive cases are increasing. we have this gymnast from the u.s. was not been named at this point and also to south african athletes testing positive in the athletes village here in japan, while others like u.s. tennis star coco gauff -- coco gauff are failing pcr tests in their own countries. what this means for the athletes here is that they will be quarantined within the athletes village or wherever they are. there are protocols in place, pages and pages of them in the olympics playbooks. these were fixed largely before the emergence of the delta variance, a highly infectious variant we are seeing problems with here in japan and around the world. really attest tester really a -- really the tests now is how nations will contain the virus with the games days away. shery: moving away from the global pandemic, what will be
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the legacy of the 2020 games? reporter: well, here in tokyo we have actually held deal and fix, 1964, a time when -- we have actually held the olympics before, 1964. even without the pandemic, there is no way the games were ever going to match the power of 1964 in terms of transformative change, but they were meant to be a story about japan and the capital recovering from the tsunami, and the nuclear disaster in 2011. most of the athletes in the northeast are off its able due to covid. when it comes to rivalries with china, one of the huge things that has changed here in japan from 1964 to now is that japan became a technological powerhouse but now falls behind its rivals in the region,
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especially on things like semiconductors. once these gains are over, what is on the table for the administration of prime minister suga is to take a look at japan's technological prowess. his government has said they will make it a national mission like securing food or energy. executives say it is time for japan to look abroad. we have a bright spark from tsmc saying they are doing due diligence for a chip center in japan, so we will keep our eyes on that as for what the future of his country could be after these olympics settle down. shery: sophie jackman, our tokyo deputy bureau chief. singapore's health minister is the latest to warn that more infections will be expected in the couple of days. let's get the latest. what do we know? reporter: suffer singapore, they
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reported hundred 63 cases in one day. that's a really high level compared to the past. it is concerning because they are in a region reporting a lot of cases and they are insulated this moment at -- because of their high vaccine rate. so we will see how effective the vaccine is at fending off the delta variance. the government has said they will take action f the situation continues. we will continue to look at that. haidi: what's the vaccination rule out like yucca -- vaccination rule out like? reporter: it was faster than financial hubs like chaim kong
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-- like hong kong. it is actually an advantage when you only consider the vaccine rate. the problem right now is really how you fend off the spread of the virus and protect yourself from the other parts of the region. haidi: shery, there's one corner of the market getting traction, esg investments as investors care more about the sustainable nature of the investments they are making. one of the paces of this market that is gained interest are these pandemic bonds. they are trying to alleviate some of the pressure on a number of governments. we know there has been no economy that has been unscathed in terms of the negative impact of covid-19. you talk about the impact on the labor force, on trade and the like. we are seeing around $60 million of these so-called social bonds
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sold so far this year, on pace to shatter the amount we saw in last year's total. that is according to data compiled by bloomberg. these proceeds go to projects that address human needs, health, hunger, and education. shery: and although it was the eu that really launch these bonds last year and are now the top issue are as well, we have seen others in emerging markets as well who really need these funds. the chilean but -- the chilean government has been the top issuer. it is not easy. they need to build up the infrastructure in order to be able to really come to market with these esg bonds, but we are seeing a growing need and also attention given to the space, which is good news for those parts of the economy that really do need the funding. >> absolutely, as we continue to talk about it, and i will talk
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about more about the pandemic has exasperated different types of inequality around the world. i want to take a look at a couple of stocks we are watching in australia. this is a bit of a move when it comes to potential deals in the energy space or no deal, as it were. the deal was rejected for its offer for a merger. the proposal was valued at four dollars 25 australian cents per share. oils trading higher after we saw santos saying oil search rejected the offer. we are continuing to watch that because oil search has really been going through a tough time lately. losing its ceo. going through that internal reshuffle. lots more to come on "daybreak asia." this is bloomberg. ♪
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haidi: a quick check of the latest business headlines. a brazilian mining giant produced let's iron ore expected -- then expected. the world's second-largest producer turns out nearly 76 million metric tons for the. which compares with an estimated 78 million tons. they are major market swing factor.
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sky city entertainment will close a casino for four days. the south australia government moved to a lower level for in response to for community cases. sky cities new zealand properties remain unaffected. this is coming days after president biden torrent or social media for spreading this information. they will also does -- youtube will display somebody is more prominently when people search for health terms. shery: we continue to see downside pressure and markets. asia stocks at a two month low, not surprising given global concerns over the delta variant. what is the extent of the losses? reporter: they are extending
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losses 3/5 straight day. softbank has the biggest drag this tuesday. the index is pushed into correction territory on the risk of tougher virus curbs in the country, especially in and the commercial love of -- the commercial hub of ho chi minh city. the government of vietnam is considering developing a national vaccine institute to improve inoculations there. flipping the board, over and s touch over in -- over in s eoul. we are seeing covid antibodies cleared for use in indonesia. their shares are flipping into the red after jumping 2% earlier, following japan giving them the nod for the antibody cocktail being used for
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nonserious cases. haidi: all right. we continue to also watch the virus outbreak situation in thailand. there reporting 11,305 new covid cases, 80 deaths out of those. thailand has seen record cases of the delta variant, highly transmissible there. this comes as they are turning to the chinese vaccine as the supply of astrazeneca falls short and impedes the vaccine rollout. one of the themes of this pandemic is inequality, the exasperating inequality situation, particularly when it comes to working women. i know you track these international labor numbers very closely, shery. it's pretty depressing. 13 million women fewer working when compared to two years ago.
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shery: there will be 13 million fewer working this year than in 2019. when it comes to recovering those jobs, female power workers are disproportionately hit and perhaps the recovery is not as fast as for the male counterparts. haidi: shery, i think the concerning part when it comes to the distortions of the labor market is we keep talking about the rebound. i just wonder how big a proportion of the jobs lost will ever come back. how many of these women who stopped working during the pandemic will be able to come back? even here in lockdown in australia, where things are really good, nothing like when compared to a lot of developing nations, you still see the outsize burden on working women, with children having to go back to online education with every lockdown. it really does feel like there needs to be more structural efforts by governments to try to
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get out of the other end of this to try to get more of the women back into the workplace. shery: really interesting. the bright side in europe seems to be that the 2020 lockdowns some men almost doubling the hours they spent on household tasks. but i have to say, is doubly enough given that we know how disproportionately it affects women with labor at home? those homemaking tasks fall to women, including daycare, and was schools closed during the lockdowns, not surprising. their place in the job market, it has decreased, but labor in the house has increased. haidi: i hope your -- i hope you're demanding at least quadruple, not just double home. coming up, j.p. morgan asset managers still preferring equities. she joins us with her global markets strategy.
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and we will take a look at china's loan primary. not expecting a change, but we get commentary about what it says about pboc quality. that's it for "daybreak asia." market coverage continues next. this is bloomberg. ♪
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>> cryptocurrency, it is -- for whatever reason. it is not :00 a.m. in beijing and shanghai, welcome to bloomberg markets china open. i am yvonne man. our top stories, asia extending the global stock selloff as geopolitical worries feel a rush into havens and spiking volatility. we will break china's low prime rate this hour. plus washington

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