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tv   Bloomberg Daybreak Australia  Bloomberg  October 24, 2021 6:00pm-7:00pm EDT

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haidi: a very good morning. welcome to "bloomberg daybreak australia." sophie: we are coming down to the major market opening. anchor: janet yellen expects inflation to remain high through the first half of 2022 but rejects criticism that they're losing control of prices. haidi: turkish lira falls to a
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record low after they expel investors from 10 nations. kathleen: a health official says the air is affected by the epidemic may expand. now for a quick check on wall street, how things closed on friday how they are getting ready to open as the asian trading day gets underway in asia, start -- starting with stocks. it was all index closing higher on friday. third week straight of gains for the dow jones industrial average. it reached another record high on friday. earnings are beating estimates. people are expecting 35% gains so there is some positive momentum there. very interesting. yields have come down a little bit and prices rising. bit of a rally there after jay powell on friday speaking to a global audience said you know, we will taper.
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not cut rates but finding it be more concerned moving onto oil as you can see, we are getting ready for starting the week on a bit of a gain. any gains last week because demand continues to outrace supply. we see shortages of energy heard all of this is increasing the demand for oil and oil products finally, looking at the turkish lira, big news over the weekend when the turkish president said that the 10 investors including u.s., germany and france are no longer welcome. waiting to get the next diplomatic message from turkey. it is taking quite a tumble, especially after that bigger than expected rate cut down 2% in trading so far today. let us go into your audience a bit more. and what jay powell said about inflation. he spoke at a big conference in
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south africa reserve bank. our own francine was on a panel they got to ask him some important question. inflation was back down to our 2% goal. even more important, he said the risk is that we will see inflation persisting and inflation moving higher. that is why he said yes, it is time to taper. i don't think it is time to cut rates. since he is acknowledging the inflation risk, people have a sense now that the fed is on it and they will not flat -- let inflation get out of control. that is why we used -- we have seen a down spin in bonds. haidi: another key voice in the medium turn is janet yellen saying that over the weekend, there will be higher inflation. probably through the middle of 2022 but she said it doesn't feel to her that policymakers
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have lost control of the situation. it is a matter of perspective. many americans haven't seen these levels of inflation in quite some time hence, it might be alarming. it was was interesting that she hasn't given advice to the president or she is not telling us that she is given advice. of course, she said some very nice and flattering things about financial regulation under his tenure. kathleen: we can be sure it is janet yellen. big week for tech earnings. there is still a sense that in a world of uncertainty, what will happen with inflation? what will happen with value versus momentum? it is a good time to be in the biggest tech names. facebook, amazon, alphabet, microsoft, all reporting this week. the question now is will investors be satisfied and by
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these stocks? the nasdaq is off a 2% record high. many people are saying that they are getting nervous about how expensive these stocks are. a big test when these earnings start pouring out. haidi: we know they got the virus under control in china but they are worrying that this resurgence of the delta variant, the outbreak we are seeing at the moment there with 26 new daily cases being reported, it has come from overseas. it spread to 11 provinces. we will have to keep an eye on that with pertaining to already the weak spots we are seeing in chinese growth. kathleen: with all of that and more topping the agenda, jampacked week for investors. let us bring in our editors. more policy speak on inflation? reporter: that is right.
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what we heard from janet yellen pretty much seizing to this ongoing narrative for markets on inflation sticky and persistent, being a round for longer. i don't think there was really anything new in their that will perhaps affect investors as we kick off the week. it is interesting that in the last week or so, we have had some market analysts and strategists saying that perhaps, we have seen a peak in these global supply bottlenecks. again, a lot of inflation will be a big theme for the market this week. what we heard from janet yellen is pretty much in tune with what we have been hearing for the last few months. haidi: the learning -- how
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serious of a target are other countries taking this threat? reporter: the reaction has been very circumspect from the weight we have heard from by and large. we heard some of the president of the european parliament say that europe will not be intimidated by erdogan. this is a long-running fight. not only over the immediate trigger of this latest spat but more generally, over human rights and policy. and their president's approach to governance between europe and turkey and also between the u.s. and turkey. what we have heard from the u.s. so far is that they asked the foreign turkish minister for clarity on what this means because erdogan said that the
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ambassadors from these 10 countries including the u.s., germany for example would be declared persona non grata. that requires an official decision from the government that is not been made yet. there is this waiting for the other shoe to drop. the feeling with eric on that -- erdogan that you have with turkey because he can be a very mercurial leader. he does not hesitate to pick fights. that said, this has been going on since the trump administration. as far as the u.s. is concerned. the is this man and philanthropist who is in jail has been there for four years already. this has been coming for a while. kathleen: more pressure on the
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lire, i guess. china on its latest virus outbreak. compared to other mornings you have heard in -- warnings of hurt in the past, how serious is this one? reporter: the global scale of things, it is minimal. we're talking about 26 new cases. for china, or the whole strategy relies on stopping sections as they emerge is pretty worrying. you got it spreading from just a handful of places a couple of days ago to 11 provinces. from inner mongolia to the north, beijing further south, and shaanxi, and you have health officials warning about an increase. they note delta is a tougher phone. it is turning that way with these resurgence as of local outbreaks. definitely coming more frequently than they did when you were just dealing with just
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garden-variety covid. haidi: as we round out the end of october, the asian earnings season is kicking off a notch. sophie, what are you watching? sophie: we have seen analyst turn more pessimistic on the outlook given the supply chain problems along with asia lagging in reopening. this opening slip toy 12 year low. downgrades being led by scalia, south korea and some parts of aussie on. we are seeing that slow down for consumption weighing on sectors a lot of consumer staples. it is real estate where we are seeing the most red flags around earnings. in light of the weight of the sector giving.
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we are surprised that we have a slowdown in china's property market such as ever grand when hsbc reports earnings this monday. with a quick check on the us trillion bond market. this after they had to defend its bond target on friday. we are seeing some flattening of the 310 curb with inflation top of mine with their data do this monday. kathleen: let's get over to sue for the first word headlines. su: japanese minister -- prime minister loss some folks that were serving a support ahead of the general election in hk and kiddo news projections, liberal democratic leaders candidate to have been beaten. he has tried to win other votes in the upcoming national vote
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with a pledge to provide massive stimulus package. nancy pelosi open the door to democrats using a special budget tool to raise the u.s. debt ceiling without the support of senate republicans whose votes would otherwise be needed to end the filibuster on the inquiries. democrats refusing to use the budget reconciliation. this could eat up weeks of senate for time. the digital coin's shiba inu became the 11th biggest cryptocurrency. it has gained more than 48,000,000% in the past year. the estimation of the market value is around 21 billion. the cryptocurrency can be quite volatile. it was founded last year in 2020 by in anonymous person and important to point out its value of one point still well below a penny.
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china will expand property tax reform trials two more areas and start taxing residential property owners. the target areas have not been specified. property prices have skyrocketed since private homeownership was introduced in 1998. they levied annual targets on second or high-priced homes. 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 am su keenan this is bloomberg. haidi: will get the latest on the ever grand saga and more insight on what is next. up next, week take a look with the week ahead. we got gdp data, big earnings helping a jampacked agenda for investors. we will let you know the key things to look out for. ♪
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haidi: let us take a look at the week ahead. big corporate earnings coming in the next couple days you need to know including gdp data from both sides of the atlantic that will reveal the impact of a number of headwinds weighing on the global economy. u.s. growth will expand 2.8% amid slowdowns in consumer spending and the third quarter. we will get eurozone data a day after. the region recovery going well after a turbulent fourth quarter. they will lay out their taper plans. the big event here in asia will be the bank of japan's decision. the chances of a policy change our next to zero. it will be focused on the latest growth and inflation outlooks. u.k. will deliver its autumn budget as energy budget and
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supply issues loom. kathleen: a lot to digest. heavy earnings week will shed more light on the severity of the supply chain disruptions. they have been amid the worst hit with apple forced to cut supply -- manufacturing. on the other hand, energy producers could be natural beneficiaries of a third mark -- third-quarter surgeon marketing prices. they have accelerated higher over the last couple weeks as oil and gas prices have soared. shall are among them. oil majors reporting and that is your week ahead. haidi: let us get more. president and chief strategist at prestige. out of the smorgasbord of data and indicators were doing -- getting this week, what are things in particular that you like? guest: there are a couple
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pieces. i think the gdp report. we can't not talk about that. that will show a sharp deceleration from what we saw in q2 where gdp was 6.7 percent. we are expecting it to be 2.1 but if you look at the gdp now, the showing an estimate of 0.5% for q3. that gdp number it will be important. it is behind us but for october, the consumer confidence data, that is one of the first limbs is at the month of october. we think it will slow it little bit but for september, that will be released it will be a bit of a mixed bag. mostly things going up but slower pace than it has been before. haidi: how much of a concern are these ongoing supply chain issues as we are closer to the holiday season? guest: a lot of the companies we spoke to that are in material handling and manufacturing are
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involved in manufacturing or these other related industries, they have been under a lot of pressure. not just getting materials or getting commodities but also with labor. the job market has improved and claims have fallen in the u.s., some sectors are having troubles hiring. manufacturing other goods remain very strong during the pandemic, we see now that it's very difficult to hire for many of those companies, it has become a scavenger hunt economy type of dynamic where you want to get people, the materials and the challenges could last for a while. kathleen: i think i will quote you on that. it makes me think of a couple of things. that can create more inflation. higher wages. yet to pay them more for the goods you need to put into production but at the same time, and many ways, jobless claims keep coming down. you got manufacturing pmi's still almost at 60. how can you talk about
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stagflation in a situation like that? guest: we are not talking about stagflation. what we do see is that inflation will go higher in q4, we are expecting a an average of five point 4 -- 5%. the real challenge will be around the believability that this is transitory because we haven't hit the peak levels for uscp i yet. for the job market and especially those initial claims they're not expect -- impacted by expired benefits, those numbers have been going down. we are expecting the jobs month -- number to be better than that september number which was ok but disappointed at only 194 thousand jobs. we were expecting more for october. that is a better number. the fed will taper on november 3. that is where we can see some risks to that slowing growth piece that is really a deceleration from a very high
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level of growth. kathleen: what will this mean for the bond market? jay powell is not ready for lift off. half of the dot plots made in september are ready for a rate hike next year. how will this affect the bond market yet out will be break above 2% and see it move higher? is there some reassurance if the fed is not in any hurry to move that rate up? guest: i think there are a few pieces him we talk about the bar in -- bond market. we are expecting a rate hike next year. we have expected it for a while. in the u.s. bond market, much less of a risk than the global and emerging bond market. even though debt to gdp ratios are much higher in advanced economies, emerging debt ratios are at the highest they have ever been. this was a lot of the talk between the world bank data released a couple weeks ago. there is concern that if we see
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bond rates move up in the u.s., not only could they move up and emerging markets but the credit spreads could widen even further presenting a downside risk to slowing growth, especially in 2023 and beyond. haidi: i want to end on energy and what is going on in china at the moment. given the fragility of the economic recovery and we are starting to see delta play out there as well in an unfavorable way. how big is the risk to china and how is this potentially changing the conversations we see going into cop 26 at of --26? guest: 26 is the greatest desolate's number in china. if you look at a 70 average in the u.s., it is over 73,000. there is a increase from zero? yes. it is a very low number in china. the pmi's will be something to watch. they have been very good.
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we think that will slow a little bit here for the month of october. china manufacturing was at 50 in september. we expect the same in october. even though it is flat at 50, we have had such strong manufacturing in china that we are flat at very high levels. should still be strong for metals demand. although supply chain shortages and needs for goods. those are still present. meanwhile, covid click -- cases globally have gone down recently. that means demand will -- oil demand will rise. that is supported by oil demand and other product prices. kathleen: thank you for joining us. putting more to come on daybreak australia. ♪his is bloomberg.
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kathleen: quick check of latest business flash headlines. they have ended months of talks without a deal over the sale of their troubled lender. the two sides were unable to come to an agreement over the size of the government's capital injection. italian government still needs to find a solution by the end of the year according to eu demands that suggests a stake by that time. they saw their net income rise about 30% in the second quarter to a $730 million. it is boosted by strong loan growth as consumer demand increased after covid-19 cases drop. there largest lender beat profit estimates because proving -- improving credit growth. they report a better 43% rise in quarterly profits to $1.8 billion. consumption boom across india helped reliance to a in 86% rise
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in materials cost. they saw a total revenue surge in 50% way be on estimates. they were saying unprecedented levels of wheeze cost from inflation. haidi: a look at the day ahead for australian and new zealand. we will be watching them open in sydney after the financial times reported their close investigation into a payment made to a consultant who helped secure a large project. scott morrison's ruling will see more on their talks this hour. they're selling a billion australian dollars worth of bonds after they were forced to defend its target on that part of the yield curve on friday. we have lots more ahead as we head into the start of trading on this first he of the week here in asia which seems to be futures looking turkey. 4/10 of 1% as we kick off the trading week here.
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big earnings week on top as well as continued conversations about the inflation risk as well. lots more to come. this is bloomberg. ♪ moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving. this halloween, xfinity rewards is offering up some spooky-good perks. like the chance to win a universal parks & resorts trip to hollywood or orlando to attend halloween horror nights. or xfinity rewards members, get the inside scoop on halloween kills.
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>> it is such an exciting time. what an exciting time to be in our business. >> if you're thinking of buying tech and these lawfully growth names, ask yourself what is the strategy? >> growth struts have had an incredible run. they've been a drivers of this bull market. we are starting to see some cracks emerge that there are better places to put your money going forward. >> i keep talking about silicon valley tax that we all have to
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say. if you want quality growth, these are companies that can navigate this environment. they can grow earnings even as the economy slows. kathleen: head of a big earnings mega cap names. the chip shortage is a major -- theme -- major theme. the average chipmaker will have profitability for the next few years. emily chang spoke with the ceo on their path forward. >> what we said was 51-53 for the next three years. that margin depression is largely driven by this capital cycle we are on. we are building out capital. we have been under invested in capital for a while. we have growing markets to catch up with and we are committed to sustain leadership. five process modes in four years. all of that requires investment.
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we are also building out these new business areas. until those news areas -- new areas produce, their drags on the margin. when they do produce, we see the benefits of those roles for the p&l. overall, couple three years, nice recovery path for the future. a freak cash flow, are making big capital investments and in a couple years, we will see a nice recovery cycle. we waited out to the street at this point so every investor knows what they are getting into when they participate in this great turnaround story. the pivot has happened and we are underway. 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. -- anchor: i spoke to tony fidel yesterday. he said by apple making its own ship, so much more is possible when it comes to innovation. they are never coming back to intel. can intel recover from losing apple and how? specifically. >> whether apple comes back or
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not, do i have better products or better process technology? maybe they become a foundry customer and as my process technology becomes the best, they may or may not be interested. i can promise you that we will have the best process and packaging technologies. generally, apple is very pragmatic. they make good decisions they can produce the best products. all they ever move back to intel-based products that have -- rather than designed around? if i deliver better products, they make pragmatic decisions. we are very realist. these decisions are many years in the making. our objective is to build a great roddick. have a vibrant pc ecosystem. tremendous process technology leadership and the capacity of packaging to go do it. i believe they and everybody else will make pragmatic decisions. as it story builds on the intel portfolio of technologies, our
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business will be well rewarded for those investments in our customers will produce the best stuff on earth. anchor: supply chain pain is only getting worse. they may have to cut production of 10 million iphones and employees are saying this is the bleakest backlog they have ever seen. do you have an updated projection on when prices get better? >> my projections have not changed. we have always said the second half of this year is the worst. q3, q4 is the bottom. they will get incrementally better. you are going to see shortages that persist into 23. we will get a little bit better each year but we will not seat reasonable supply chain bounce until 2023. it just takes that long to build new capacity. to build new factories. to expand capabilities and
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manufacturing and the sea of rebalancing the supply chain across the industry. overall, it clearly impacted our q3 and we expect our q4 results. if i can build more, we will have better revenue results. haidi: intel ceo. they reported third-quarter warnings. whether this say anything about the exposure to the chinese property market amid the wells at evergreen. we will set the scene by throwing out this chart. we have seen hsbc trailing when it comes to their interest margins. the best part, over a decade, compared to its global peers. are we expecting an improvement given how lending has been in hong kong? reporter: that is the big question. they're looking for a pretax profit of 4.8 billion dollars. that would make it 10% higher
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than this time last year. as you say, the big question is what has low interest rates done to their margins? know the hong kong economy has posted a strong recovery and that will underpin the results today. hsbc's biggest market. investors are closely looking at that topline growth. that is a combination of its corporate banking, wholesale banking. because of the low interest mates -- rates you mention. perhaps, a possible update on this strategic review that was announced in february. as you know, the bank has been facing more towards china that sold retail assets in north america and europe to try and concentrate its business around them a bit more. i'll saw the leg astray good tory changes have affected that plan. kathleen: when you look at
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investment banking, when you look at capital markets, what are the affectations or what part of the businesses have performed best? reporter: investment anchoring -- banking as the u.s. has reported over the last couple of months has been a booming market for everybody. we are going through a massive deal deluge where we are at record levels. in terms of loan growth, that is a bit soft. they will be looking for an update because that is affected by interest margins as well. kathleen: thank you for helping us get ready for those earning numbers. will be joined in a few hours time after is earnings are released after new york -- midnight in new york. let's get the first word news with su keenan.
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vonnie: we start with -- sophie: we start with janet yellen pitch expects this is to remain high for the first half of between two but rejecting criticism that the u.s. is losing control of inflation. speaking on the state of the union program, she said this reflects temporary pain. she said inflation is expected to ease in the second half as the issues range from supply bottlenecks and a tight labor market ease. >> i don't think we are about to lose control of inflation. i agree of course, we are going through a period of inflation that is higher than americans have seen in a long time. it is something that is obviously a concern and worrying but we have not lost control. as we make further progress on the pandemic, i expect these bottlenecks to subside. americans will return to the
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labor force as conditions improve. sophie: chinese health officials sate new covid infections are in -- expected in coming days. the wave is spreading to 11 provinces and most of the infected people had crossed region travel histories. national health commission says the current outbreak is caused by the delta variant. china is targeting more than 80% nonfossil energy use by 2060. the measures are part of the larger plan. p carpet -- peak carbon emissions. beijing will solidly develop of industries including next-generation materials, investment in other places will be controlled. "bloomberg daybreak australia." -- 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 am su keenan. this is bloomberg.
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haidi: ever grand staves off default with a last-minute coop employment -- payment. -- last-minute coupon payment. this is bloomberg. ♪
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sophie: more calls from the
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asian trading day. reports from goldman sachs. they are assessing china's outlooks after a third quarter marked by high producing price inflation. the bank expects this combo to be temporary and the sequential pickup in growth going into the final stretch of this year at 6% . annualized quarterly growth. switching out the board. the four property leveraging as well as decarbonization. those main key headwinds on the mainland. they have cut their growth to 5% to -- 5.2% despite expectations for incremental and weekly support. kathleen: pulling back from the brink of default by paying a bond coupon. the property developers is construction of more than 40 projects are proceeding smoothly and delivery of the homes will be assured. let us strip dust discuss this.
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-- let us discuss this. in terms of that payment made, there's one due soon. they will make it again. to what extent does this reinsure -- reassure investors that this matter will be resolved in a way that doesn't mean some kind of default, complete meltdown of ever grand? guest: we have not thought of ever grand as this sort of event. i think this bond payment became more apparent after they were able to successfully negotiate an extension of one of the private loans. what was called that. following that, they did pay for coupon of the lending be bond. it was not entirely a surprise. when it was first announced that they would pay this last dollar
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bond coupon and they initially had a pop and then sort of quickly came back down to almost unchanged on the date which tells you what the market decides as the potential recovery value of the u.s. dollar bond. that may or may not be treated differently. it is unclear how the restructuring ultimately will become. i think it made sense for them to pay this a day before the end of the grace period in order to kick the can town -- down the road while they figure out a conference of solution for this. what is clear for us right now is we have not had enough precedent to reassure the market, offshore or onshore is treated equally. kathleen: there haven't been enough incidents to set the
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precedent, right? what will this ultimate complements -- comprehensive resolution look like? will it involve the government? it will involve the pboc who seem to say they want the private players involved to work this out? guest: we would guess that right now, the decision-making is not entirely in the chairman's hand anyway. the payment of this coupon, i would assume doesn't involve the government in order for the pboc to maintain stability over the financial system. that much is clear to the market. it is up to anybody's guess at the moment. judging from some other situations this year, it is entirely possible that onshore and offshore negotiations may be handled differently. haidi: are there opportunities
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created with this idea of a localized or do you think there is a overestimation on how they will recover from this? guest: there has been an overreaction across the market that the locations are there for people to pick and choose through and see who the survivors are. that being said, tail risk has risen. default rate is now what we expect to rise as well. i think there have been dislocations that are quite interesting both across double v and select single names. overall, talent risk has risen in the property sector. when it come -- haidi: when it comes to what we saw a couple weeks ago, the opacities of these cross
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defaults and obligations that are not on the books. is that fear unfounded? do you think that was an overreaction? guest: there is also, besides the fundamental analysis, there is a technical impact on the market as there have been some unwinds of structured credit upon us that were with leverage that contained property bonds. that said, as far as the pricing in of fundamental risk. it is the case that while the pboc last week made some statements towards trying to stabilize the market and mention the offshore bond market as a release of the property sector, i think the intention of the government isn't to kill the
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sector but to maintain deleveraging. the trend in this sector to contain risk. we do have to recognize one thing. property developers do have a harder time in the versatility of the funding. they are less able to shift cash from projects. excess cash from the presale. they have less versatility in that. it is also the fact that our dollar bond market right now, because of the fear, we have spiraled ourselves in the u.s. dollar bond market, such that it is close right now for refinancing. the winners that will emerge are those that make a contingency plan ahead and are able to either sell some assets or i think it is really about the
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ability to ride through the next six to eight months potentially. two pay out there cash balance. pay down their debt. i think that is a separation of the winners and losers. the pboc, i think has shown that they will be pumping liquidity into the markets right now rather than trying to make any rrr cuts for example. i think they are adjusting their policies. haidi: such a balancing act there. great to have you with us. be sure to tune into bloomberg radio to hear more from the big newsmaker seeing get in-depth analysis from the daybreak team. we are broadcasting live from our studio in hong kong. much more ahead on "bloomberg daybreak australia." this is bloomberg. ♪
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>> on the issue of reducing emissions. i am pleased to launch an initiative that will lead to the reduction of carbon emissions by 200 million tons by 2030. this represents monetary reduction of more than double the announced target. in terms of reduced admissions, it is 130 million tons annually by 2030. haidi: the world's biggest oil
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exporter has a net zero target by two t 60. that as china announced more than 20 -- 80% reduction of energy use in four decades to reach its own goals. top 26 just days away now. scott morrison's ruling over what policy he will take to the crucial talks. joining us for the latest is our editor. without getting into the domestic policy seeking, do we expect the prime minister ted to glasgow with more ambitious climate policies action? reporter: i thing the term ambitious is up for debate. we probably expect different policies. that debate we have seen we have seen is coming to some type of resolution.
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they have indicated they are now willing to sign up for a not -- net zero 2060 pledge. we expecting us trillion government to have a more detailed in the coming hours, and scott morrison should go to glasgow without -- with that pledge. that doesn't just bring australia into line with its allies, particularly with the u.s., it is asking for its countries to be more ambitious. what is australia doing by 2030? that is where the focus will shift and the question there is a straight remains behind most of its allies. kathleen: we's her that net pledge from another x order. saudi arabia. how feasible is that and why is that significant? reporter: they are on a per capita basis, the highest emitters.
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really significant that saudi arabia is saying it will be net zero by 2060. this plan for society and others to pump out plenty of crude oil. a lot of the plant relies on quite ambitious targets around carbon capture technology. it remains largely unproven and at scale. there are question marks that i believe are significant. they had previously argued from cutting investments and blaming climate activists for a surge in energy prices last year. it seems to be a distraction and now they change their tide. that will be a big boost for the conference starting in a couple of days. haidi: whether governments step up or fall short of their ambitions, they are highlighting the fact that the private sector need to have this crucial role. reporter: absolutely.
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a story published this morning, really fascinating read looking at the role of chinese companies and how do they compare to some of these national emitters? just a few examples. they commissioned debt more missions -- they're more missions in pakistan. more than canada. scientists are highlighting that to and she -- to achieve these ambitions it is companies like those to make commitments and follow through on them as well as the country's gathering at the week. kathleen: now for quick check of the business flash headlines. sticking with climate pledges, sk group is going to spend big on green technology by achieving a zero carbon footprint by 2035. they will invest 85 billion
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dollars in environmental friendly businesses as they will cut emissions by 200 million tons by 2030. they unveiled deals of the new tech including assisted driving, a faster charging infrastructure and get this, a flying car. it lodged a prototype of a robot horse as it looks for solutions beyond ev. half of its users have signed up and paid for a specific driving solution. the telegraph reports that star link to have a tie up to expand our been service in u.k.. they are in talks with multiple operators and striking a deal -- close to striking a deal. haidi: the market outlook with others. hong kong financial sector is putting pressure on the government to ease restrictions
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we will talk with our guest about that. . daybreak asia is next. this is bloomberg. ♪
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>> hello and welcome to "daybreak asia". sophie: i am sophie kamaruddin in hong kong. kathleen: good evening, i'm kathleen hays. now for our top stories. asian stocks are set for a make start as a way inflation risks. china's pandemic warning made dampen sentiment. a new covert outbreak will worsen in the coming

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