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tv   Bloomberg Markets Asia  Bloomberg  October 25, 2021 10:00pm-11:00pm EDT

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speak, that goes into inflation expectations, which are coming off. it is still substantially higher. 16 year highs. 20 years -- 20 your highs in some cases. yvonne: learnings looking quite positive when it comes to the u.s. side of things. chinese equities, pboc injections in the last hour. when it comes to this call, china says they don't have much to offer in terms of information. talking about in -- talking about economic cooperation. that was enough to lift u.s. futures. breakeven levels here. looking pretty elevated today. we are seeing risk on across the board.
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david: commodity markets, third prices are back in focus. you and i were talking about it. rarely do we look at apple futures. 8500 right now. also energy commodities, rent, -- brent, cold down 9%. the line was at the and drc they are studying mechanisms to stabilize prices. we are seeing those come in. the pboc coming in again. yvonne: crude is interesting. there have been talks the e.u. and i ran are going to start talking again. we are off some of the 2014 highs we saw a few days ago. this is how we are playing out. slightly lower on the csi 300. muted on shanghai composite. it's -- the hang seng lower. we are watching the pboc injections. about five sessions where we had seen that. we continue to see liquidity
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injections. there all these calls about rrr. david: you cannot have both. otherwise we talk about inflation. let's bring in mark cranfield out of our team. let's start with the phone call. seemingly a very short one between janet yellen and the currency strengthening and we are coming off lows. it is good news. >> definitely. traders will be happier to hear big players in the u.s. and china are speaking to each other even if there is nothing specific that comes out of that phone call. it is much more encouraging than if it had been between the two presidents because these people are much more likely to have their ear to the ground to be in touch with what might be able to be done in terms of improving trade relations between the two countries. it is actually a very good sign even if we don't get much today.
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at least they are probably forming some kind of platform where they can work together in the future. there has been a muted reaction in the market so far. as more details come through, they will be relieved and we may get something more tangible, which in seen by the market as a good news factor. so far it is the u.s. equities responding more. china stocks are more concerned by the fact the chances of a rrr rate cut is receding. they were probably hoping by now we would have seen something more specific from the central bank in china. what they are doing is these daily injections of liquidity seem to be offsetting the need for them to reduce rates. that is a slight disappointment to chinese stocks in the near term. if we don't get more on the trade front, that will be better in the weeks ahead.
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yvonne: we are focusing a lot on earnings. you're starting to hear more on these earnings calls. the ceo talking about bottlenecks when it comes to supply chains. how do you see the supply chain woes affecting assets? >> it is going to be an interesting few days because we have three central-bank meetings , four central-bank meetings coming up in the next couple weeks. how the central banks talk about supply chains will be important in held traders read the inflation started. we have the ecb in japan and the rba next week. the ecb and the fed in particular, people will be looking closely to see whether they drill any link toward the problems in the supply chain and whether inflation is going to stay high. this is going to be important for people and it the bond market. we are already seeing yields have been rising for the past couple of weeks. if central banks give any hint they are worried supply chains are not going to be eased for some time, that will underpin
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their inflation story we already have. it will be a feedback loop between supply chains inflation, the bond market. traders will be watching it very closely. whatever the major banks have to say, that will be important. also for the equity market as well. we will see how there are certain companies that can benefit from the ability to be able to raise prices because of the supply chain. they can still deliver but at better margins. it is pretty important during this time as well. yvonne: we will get to you later on. joining us at of singapore. -- joining us out of singapore. there is commentary and print 8 -- and plenty of analysis from mark and his expert editors and his team should taking a look at first word news. let's bring in paul allen us from sydney. paul: the u.s. has issued new
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travel regulations requiring approval for vaccination against covid-19 along with a recent negative test. people from countries with low vaccine supplies who are not traveling on tourist abuses will be exempt. the new rules are effective from november the eighth. they left travel restrictions on people from china, india and much of europe. modern land is the latest chinese developer to miss a payment on a dollar bond. that is according to a filing at the singapore stock exchange. last week they terminated a proposal to extend the bond's maturity by three much. shares have been suspended since last thursday. we are hearing of at least two holders of evergrande's 8.25 dollar notes. the grace period for another payment ends this friday.
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creditors are bracing for an eventual debt restructuring that could rank among the largest ever in china. australia's crown resorts will be placed under strict government supervision for the next two years after being found unfit to hold its melbourne casino license. an investigation found a litany of wrongdoing including underpaying casino taxes and legally allowing hotel guests to use credit cards to excess funds on the casino floor. crown could still lose it's a license if the government is not satisfied. the sec has won a concession in its drive toward greg leding the 131 billion dollars stable coin market. the treasury department and other agencies will publish a report this week saying the sec had significant authority over tokens like tether. it will urge congress to pass legislation specifying the coins should be regulated similar to bank deposits. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries.
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i'm paul allen. this is bloomberg. david: trading 3% higher here in the region as we speak. exclusive interview coming up with the vice chair, martin houston. the company has seen stocks soar to hundred percent here today. gas prices soaring. yvonne: later on, australia's minister for trade, tourism and investment joins us. we will discuss the fragile trade ties with china and the upcoming cop 26 summit. this is bloomberg. ♪
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david: a quick glance at energy markets. oils still trading fairly flat
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right now. if you're waking up after three month, you might be surprised. 140%. we have come off highs already that does not even take us into what we are seeing in europe where prices are substantially higher compared to the u.s. contract. yvonne: it has benefited companies like the likes of ira next guest here. -- the likes of our next guest here. he joins us from the sidelines of the singapore international energy week event. taking a look at asia lng prices. we are talking about the mid-30's amid the shortages we have been seeing. what is your price forecast for the next decade to come when it comes to lng? is it still higher for longer? >> where we are today is in structural short position we have been forecasting for the last five years.
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typically the energy industry, we make predictions based on the present rather than looking at the past. it has been clear for some time that we would be short of gas lng so it has come to pass particularly as the recovery from covid has been much stronger, quicker, much more of the shape then people have expected. this is entirely foreseeable. the question i often get asked is what has caused this, particularly i would say the energy crisis in europe. it is simply supply and demand. there is nothing more complicated than that. yvonne: winter is coming now. it looks like people are concerned the temperatures are going to get frigid. is there a risk now there is going to be a natural gas shortage within the u.s.? >> i'm not so sure in the u.s.
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we have seen some strong prices in the u.s. but the u.s. is well supplied. the question is, natural gas as an export from the u.s., from other major suppliers reaching the distant markets of asia and europe for that matter. the question is if we have a deep cold winter on a global basis, what happens? typically companies are often prepared for the winter by now. whether we see a price excursion going into the winter remains to be seen. what we can see is we look at the forward curve is that this expectation of strong prices and higher for longer is reflected in the forward markets. we can see the for quite -- see that for quite some years to come. which is great for a company like ours, which is about to commence building a large piece of lng infrastructure in the
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united states. david: does that mean for companies like yourself, and i'm guessing your peers or potential peers to come, when you look at the forward curve, that seems to be a simple attractive proposition to come into this market and put capex in. >> i think it is. it is a great market to be supplying into. we have to look at the role of natural gas going forward. regardless of societal rhetoric, natural gas is the transition fuel for partnering renewables, for a very long time to come. that is an essential part of the macro as we look at making these investments in the united states in our case but also other geographies in the case of some other project. the world needs gas. it is going to need a lot of gas. one of the questions i have been confronted with here in singapore and sent up and singapore energy week is this
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question of what part of renewables and why gas is so important in that transition. it is something which we absolutely have to join together with policy, with supply, with consent and so on. we have got -- we have a bright future for natural gas. regardless of how people view the future of hydrocarbon more generally. david: that brings up a simple question. if the math is that simple in the case is that blatantly obvious, what is keeping capex out of this market? where more companies like yourself investing more? -- why aren't more companies like yourself investing more? >> number of companies are investing. you are seeing qatar move forward with an expansion of its lng. you're seeing brownfield investments in australia.
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there are number of investments going on in the united states. these projects are proceeding as are we. one of the challenges specifically for not just natural gas but for energy and hydrocarbon generally is the availability of the capital sector. that is something we have to challenge head on. if we are going to build infrastructure, that is necessary to support the energy transition over a long time. we are not talking years. we are talking about decades in which gas will play a crucial role going forward. we need the capital to do that. we have to get capital joined up with policy, joined up with the supply demand and an orderly transition from where we are as weedy carbonized the globe -- and as we d carbonized the globe.
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energy poverty is a real issue for the future. yvonne: i guess the next question then is what volume of your lng production remains on contrasted and our discussions with buyers right now? coso for we have sold 9 million sums of energy. that energy has been sold to strong buyers. we intend to get on with that phase of the project. then we will move to the second and third and fourth phase of the project. the full project is around 27.5 million. david: their stock is up 350%. does your stock is up three to 50%. current cost is on the lower
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end. you have any plans to raise some money. >> we do indeed appear that is the next step, finding the capital to underpin the developments. again, to my point earlier, we need a strong commitment from banks to recognize that gas has a long-term future. society is making a different coal out of hydrocarbon but we are absolutely driven by the macro. without natural gas, what is there? i often find myself in situations where people talk about new exotic technologies, which will form part of the energy mix going forward. the question as we get to that point, as we get to those technologies, what is underpinning the global energy supply? right now, gas has to be at the forefront of that debate. gas has got to replace in the first instance, which is
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responsible for so many of the emissions we are having to deal with. the simple fact of replacing coal with natural gas on a global basis will drive down emissions and get as well on the way on this global decarbonization journey. looking at the macro position for gas, it is an exciting future in our view. david: a pleasure to have you on our show. there's plenty more to talk about. martin houston, the vice chair. just coming up here on the show, a look at results out with some numbers and comments out of the ceo. headwinds the company is facing as it pertains to apple. that is next. this is bloomberg. ♪
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yvonne: facebook and tesla have grabbing the headlines. tesla had a trillion dollar valuation. facebook shares rallied in extended trading. let's bring in su keenan joining us with a wrap up of the earnings we got when it comes to facebook. we saw a quarterly topline. even when it came to forecast. did fall short but investors push the stock higher. su:su: facebook wanted to hit them with some confidence inducing news. third quarter results showing people are actively using the network of social media apps care that helped push the stock up. this is at a time when facebook has been in the crosshairs of many attacks. the company pledged to buy as many as 50 billion more in stock buybacks. these are two things that seemed to push the stock higher an extended trading that may translate when the u.s. market
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opens for daytrading. as for the revenue growth, a climb to 35% to 29 billion just below estimates. the daily active users for the apps that include facebook, instagram and whatsapp rose to 2.8 one billion. facebook as we know has benefited from the pandemic and all the people being locked down. the sales and fourth-quarter forecast disappointed and many analysts are saying that is a sign apple's restriction on consumer data collection and the uncertainty of the pandemic recovery is really weighing on outlook and represents the headwinds the company is facing. yvonne: you mentioned some of those. there were the documents released by the whistleblower. what did mark zuckerberg have to say? su: mark zuckerberg came out fighting with a full throttle of defense when it came to documents leased by the whistleblower and accusations
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they are not commenting or combating the ills. former facebook staffer frances haugen went with allegations facebook prioritizes profit over safety and security. so coburg called this part of the -- zuckerberg called this part of the core dated effort to use leaked documents to paint a false picture of the company. he also addressed the change in add tracking with apple. >> we did experience revenue headwinds this quarter including from apples changes that are not only negatively affecting our business but millions of small businesses in what is already a difficult time for them and the economy. su:su: zuckerberg went on about the focus on building out the meta-verse where users will engage in videogame like virtual environments. that is a big push for the company. yvonne: tesla, we saw the stock
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soaring in the latest session and leaving facebook in the dust. su: let's drop into the bloomberg because you can see tesla lifting off. it was up as much as almost 10% in the latest session. this a result of bloomberg breaking the news that hertz has placed an order for 100,000 teslas. that pushed shares up past the one trillion mark. tesla is the fifth the biggest u.s. publicly traded company. it is also the first junk rated company to reach a trillion dollar market cap. the valuation gives a bondholders an unprecedented equity cushion in the view of analysts. a very good day for tesla and facebook. shareholders. we will see how that translates into the session once it opens on tuesday. yvonne: we are watching asian
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suppliers of tesla here. david: whether that is a parts supplier, even a peer. that has got to hurt. glad you got that. bodes well for the sector even just widespread acceptance. it also goes into -- we were talking about this yesterday. elon musk is worth a quarter of a trillion u.s. dollars on the back of the rise in tesla. 80% of the rally is actually -- to see him overtake jeff bezos, second closest rival in terms of net worth if you will. there we go. quarter of a trillion dollars. it could reach a trillion on the back of spacex. that is a longer conversation. yvonne: you still wonder about the valuation. does it justify it?
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the debate continues when it comes to tesla stock. coming up, when it comes to australia, speaking to the minister of trade, tourism and investment. that is just ahead. this is bloomberg. ♪ 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. just say "watch with" into your voice remote for an exclusive live stream with jamie lee curtis. a q&a with me! join for free on the xfinity app. our thanks your rewards.
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paul: it is 10:29 a.m. in hong kong, if you are watching "bloomberg markets: asia" i am paul allen. facebook announcing a share buyback of as much as $50 billion in the earnings call. ceo mark flagged revenue headwinds and apples restrictions on consumer data restrictions. he said there is a coordinated effort to paint a false picture
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of the company. >> as expected, we did experience revenue headwinds this quarter including apple's changes that are not only affecting our business, but millions of small business is in what is an already difficult time for them. paul: the turkish lira has been making a recovery after the president stopped a demand for investors to be expelled. the envoys had issued a statement to undo what he called a -- caused by their earlier demand for turkey to release the businessman and a government critic who has been in jail for four years. the u.s. is suspending economic aid to sudan after the military arrested government officials. an aid package had been intended to support sedans democratic transition. so down military rulers say it they will appoint a new
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government. hong kong has arrested a political dissenter after being found guilty of inciting secession. he denied the charges. two trials held so far have focused on the use of political slogans, adding to fears of freedom of each being eroded. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. yvonne: alright, more details when it came to that phone call between the treasury secretary in the u.s. and liu he. not a lot of details but they said they discussed macro developments and janet yellen raised issues of concern to liu he. not sure what those concerns are, but certainly it was announced the lift sentiments
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here in the market today. we saw highs for the currency. certainly, it was enough when you hear the likes of economic and cooperation on the call. . yes,, issues were raised, though. we will see if that transpires anything more than that. david: hopefully they ended the statement with that the secretary is looking forward to these discussions. at least they are talking. features are pointing up. we closed at a record high in america -- futures are pointing up. we closed at a record high in america. this company reported a jump in profits and higher share buyback. in its interview with us, the bloomberg chief financial officer laid down the lender's exposure to the mainland property sector. have a listen. >> none of that 1968 direct exposure to the category.
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we are reasonably confident and comfortable with the credit exposure we have to the chinese real estate market at the moment. we have been through an exercise as a result of these results. looking at credit provisions in china, we are comfortable. i think you should read into the buyback the fact that we are confident of where we are sitting. >> give me your perspective, the impact on capital markets and bond markets. given the ongoing evergrande saga, do you think we are only beginning to see the impact on markets, are we near the end? >> i think the evergrande situation has been well categorized for the market for months now. i am not saying never, but our view is we are not going to --
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any material fallout as a result of this. >> hong kong is a critical market for you. is the hong kong property market insulated? from what is happening with evergrande? >> hong kong is a third of the group's profits, it is our most important market. i think the hong kong real estate market has proved to be resilient through many, many cycles. there is effectively a shortage of good quality property in hong kong. and our exposure to the hong kong property market is significant, but our coverage ratios are high and we don't see any particular spillover effect at the moment into hong kong. >> a few friends that left hong kong a few years ago would be happy to hear that about the scarcity and value. let's talk about risk aversion to china. i don't need to give you a laundry list. do you think global investors'
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risk appetite for chinese assets is materially weakened? >> through the lens of our business, revenues were up year-on-year. profits are up 30%. we are continuing to invest heavily. we set up a new life insurance venture called pinnacle. we are already up to 500 advisors in that business. so for us, we continue to be very bullish about the long-term growth opportunity in china. yvonne: that was the hsbc chief financial officer speaking with bloomberg's manus cranny. coming, australia's minister for trade, tourism and investment, as the country makes a push for its green economy. this is bloomberg. ♪ ♪
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david: welcome back. just going to take you through these markets. we did get the interjection out of the pboc, the phone call that took place. we have details of that out of liu he and the u.s. treasury secretary. we had gross domestic product index coming out, half of the median estimate quarter by quarter. and a lot of earnings out of india, we will watch that as a theme closely.
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apple futures in china. we have been tracking this morning. have a look at how this looks over one month. we have it on the bloomberg. we are retracing lower on the back of china, may be looking to cool further. this market, planning new limits on coal prices to fix its energy crisis. yvonne: and morgan stanley coming out with that call about coal producers as well, we might see some correction sometime soon. let's cross over to our colleague, juliette saly standing by, with our next guest, of street is minister for trade, tourism. juliette: australia finally agreed to set a target for net zero carbon emissions by 2050. the move coming amid increased pressure from the government to act on global warming. we are joined by daniel thomas
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tehan from canberra. i just wanted to get your thoughts as we are seeing australia move towards the more sustainable economy agreement. >> australia has always played its part when it comes to production. we are on track to not only meet the paris targets, we want to make sure we have a firm commitment when it comes to 2050 and that is why we signed up to net zero and we would do so in a way that also helps the rest of the world, because it is very much a technology focused approach that we are taking. it will be technology that will lead us there.
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juliette: can you tell us about this agreement with singapore to help both countries move towards your goal? min. tehan: we are going to negotiate a green economy agreement about making sure that there are no tariffs on environmental goods and services. that we work together on carbon offsets and when it comes to renewable energy and especially investment into renewable energy. these negotiations, this agreement i think is groundbreaking and our hope is that once we do have an agreement reached on other countries, this is a very positive approach to dealing with emissions rather than what we're seeing from some other countries, which is putting tariffs in place in the form of carbon --. those protectionist forces will not help with emissions reduction, as a matter of fact, it will harm it. we want to make sure we are looking at positive approaches.
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juliette: i want to talk about some of your other relations as we look ahead to cup 26. you have had your rope turning back on its bid for an ftfa, and china relations are still not great. has australia done too much talking announcing publicly and not much work behind the scenes? min. tehan: obviously, we are doing a lot of work on a number of fronts. in my recent trip to indonesia and india, the united arab emirates, france, italy, belgian and the uk, i can tell you everyone was very keen. the key role we are playing in the indo-pacific is very important. india wanted to speed up the free-trade negotiation with us. the united arab emirates and the gulf corporation counsel
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are very keen to do an fta with us. we are about to do one with the united kingdom, the quickest one that roastery has negotiated with a major economy. we have a lot going on at the moment. i hosted a mini ministerial meeting with the o.e.c.d. about us getting a very good ministerial outcome in geneva at the end of this year and november, beginning of december. so there is a lot going on. people are very keen to engage with us, whether it be singapore on the green economy agreement or fta's with india, the gcc, the u.k., and also pursuing our agreement with the european union. i had a good meeting with everyone and we will work very closely leading up to the --.
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we also want to progress our fta when the time is right to do so. juliette: and how is conversation going with china? i believe you sent a letter to your counterpart in january. mnstr. tehan: we have not had a response. obviously, when i sent it in january, i set out all the ways we could cooperatively work together, and all the issues of mutual interest to enhance both our economies. australia has been a very reliable trading partner with china, especially as a source of energy. one of the things that is impacting china -- australia was a reliable supplier of coal to china. obviously, that stopped through one of the trade disputes. we stand ready to continue to provide good, clean coal to china to help it with its energy
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crisis. but we will remain patient. we want to engage. we understand how important economic relationship is lifting people out of poverty in china, and also helping us maintain our standard of living. juliette: minister, the other exciting thing is that the international border is opening for some states on november 1 for fully vaccinated citizens. at one point do we see other visa holders and students and tourism come back? mnstr. tehan: they will follow. my hope is we will see that happening before christmas. we are making big inroads in opening up our international borders. we want to make sure we do it as safe as it began. first priority is returning the --, then the working holiday visa, the agricultural visa holders. we want to make sure that we open up, we bring the workforce in, and then welcoming
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international tourists back. i think international students, working holiday visa holders and agricultural visa holders will be welcomed back before christmas, if all goes well. juliette: what will international tourism look like given that citizens must be fully vaccinated to return, but we are here that there could be an vaccinated tennis players arriving for the melbourne open? mnstr. tehan: i think that will evolve. it is evolving internationally. obviously a country like australia, we have been able to deal with the pandemic as well as any country in the world. we have to make sure we open up safely. the best way we can do that is by bringing in those who are doubly vaccinated, without quarantine, and those who are not vaccinated, putting quarantine arrangements in place. but over time, the use of
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testing, the use of vaccinations, certification, making it easy for people to come and go from countries around the world. ultimately we have got to learn to live with the virus, and we want to make international travel have an as seamlessly as possible globally. it is the best way we can ensure the global economy continues to thrive as we come out of this pandemic. that will be incredibly important to countries. juliette: something i have a vested interest in, when are we going to see a vaccinated travel lane with singapore? the prime minister alluded to this last week. where are we with that? is australia concerned about the spike in cases in singapore, that some countries like the u.s. and germany have labeled as high risk? mnstr. tehan: we are very keen to see that lane open as soon as possible. singapore has done a remarkable job managing the virus. they continued to manage that and we are very keen to get that
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bubble open between austria and singapore. australia's prime minister said on friday that he is keen to see it happen. i will be doing everything i can to make sure we get the line opened as soon as possibly can. juliette: final question, i know that this is about a victorian inquiry but we have seen a flagship casino and big tourism boost for australia managed to save its flagship casino. do you see this is an important step for tourism as we see victoria reopen? mnstr. tehan: it is important. we have got to make sure that when it comes to our casinos, that they are operating according to the laws here in australia. what we have seen through this royal commission is a very thorough process to make sure
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that the protocols, the regulations, the policies in place for crown to be able to do that. it is a big attractor of tourists, so it is positive that it will be able to continue to operate, along with the other casinos we have operating here in australia. there is our cruise ships, which i hope will be up and running soon. our wonderful destinations across our country. i can tell you from my travel overseas, people cannot wait to get back to visit australia, whether it be businesses or tourists. the demand is there. the sooner we can open up and safely welcome all those people back, the better. as far as i am concerned as australia's tourism minister. juliette: minister, i have my ticket booked. we thank you for your time, australia's minister for trade, tourism and investment, dan tehan. thank you.
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david: breaking news, that was a great conversation between jules on all things australia. we are looking at buyout firms bain, blackstone, including kkr -- unclear if they see separate or together -- they are bidding on a chinese software maker for $1.8 million. that is the value of yayoi. that is what we understand, according to our sources who are familiar with what is going on there. that is what we know so far. again, buyout firms bidding. yvonne: that deal could end by march, some, according to our sources. tensions between china and taiwan escalate, as type a sends a delegation to the czech republic to boost ties. we look at the fraud relationship. this is bloomberg. ♪ -- we look at the fraudght
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relationship. ip.
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yvonne: equity markets are in the green. on the back of the treasury call between janet yellen and newhart. you have taiwan still in the crosshairs.
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taiwan sent businessmen to the czech republic to boost ties. this comes as beijing raises the pressure on taipei. let's start with the delegation in prague. the uptick do not look good. how has beijing responded so far? >> it was a group of 60 delegates. this has angered beijing because it demands that countries that have formal diplomatic relations with it don't have ties with taipei. the czech republic does not have diplomatic ties with taipei, but things like this are pushing the red line that agreement. in the meeting doesn't come in isolation. earlier we saw lithuania allow taipei to open an embassy in the
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capital. and on friday high-level u.s. delegates met by video link with the chinese delegates to talk about taiwan's increased participation in --, something which xi jinping weight clear in a speech yesterday he was not down for. david: let's talk about the accusations from beijing of the taiwanese president about this two-state theory. >> on taiwan's national day on october 10, the president said that taiwan and china should not be insubordinate to each other. stating the obvious. state media and diplomats have accused the taiwanese president of reinstating the two-state theory followed by taiwan's first diplomatic precedent that taiwan and beijing should have state to state relations.
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all of that is giving taiwan a descent profile, which is sitting badly on beijing. yvonne: i guess he was speaking to a domestic audience in that speech. what are the broader repercussions of that? >> there are two big repercussions. the first in washington. relations have become a point, and pressure is growing on joe biden to clarify its commitment to taiwan. last friday there was an interview with cnn, that washington would defend taiwan in a chinese attack. the white house quickly walked those statements back and said
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it was not a new policy. there are also domestic implications for xi jinping. there have been commentaries asking why he hasn't pushed back against these comments more forcefully. with the planned summit next month between biden and xi, it could be that he is just keeping the peace. david: our greater china editor, and all things beijing and taipei. thank you. we are looking at the story -- the coal story very close. and also this all out of morgan stanley. we are looking at the related names in the region in china, on the back of the drawdown we are seeing among coal prices. yvonne: yeah, morgan stanley saying -- start to fall after what the government was talking about, stopping the excessive profit. they are thinking that we are starting to see things look a little bit too expensive or a little bit too aggressive in
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terms of the bullishness on the stock, but there is caution due to the pricing pressures on the sector. david: absolutely, got to cool the coal prices down. there we go. keep it here. you're watching bloomberg. ♪
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>> from the heart of where innovation, money and collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. i'm lee: coming up in the next hour, facebook out with earnings. announcing a new reporting structure. if you are looking on news on

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