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tv   Bloomberg Daybreak Asia  Bloomberg  November 7, 2021 6:00pm-8:00pm EST

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heidi: welcome to daybreak: asia. shery: we are counting down to asia's major market opens. i am shery ahn. our top stories this evening. china posts a record trade surplus despite mobile supply chain disruption. sell sell sell is the result
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from people on mosques twitter poll on whether he should offload twin percent -- 10% of his stake in tesla. haidi: straight to the markets. sophie: we are seeing downside pressure for sydney stocks. we are keeping an eye on bhp shares this morning. 80% of its stake. look at the aussie dollar holding below 74 after the dovish stance on rights despite an out pleat -- an upbeat outlook on the economy next year. we have this happening as australia is reopening its borders to international travel. we have markets pricing what could be aussie bonds catch a
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bit earlier. we had the 10 year yield falling by about nine basis points. crown resort shared this morning . watching the stock as the local media is reporting that blackstone has abandoned its takeover offer for the casino operator. across the region this monday morning, futures in singapore higher. we are seeing the yen hold on to a two day advance. it is still a decent performer year to date. we have the offshore u.n. continuing to gain ground holding below at 640. the greenback as we have strong export for china heading into the support for the currency. haidi: let's get back to twitter and tesla. there is never idle moment. when it comes to elon musk and what he is tweeting. he put out people.
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should he sell 20 -- 10% stake in tesla stock, and equivalent of $21 billion. a majority, 58%, about 3.5 million respondents said he should. elon musk tweeted afterwards saying he was prepared to accept either outcome. this is obviously not the first time we have seen mosque taking to twitter to gather a pit -- musk taking to twitter to gather opinions and create controversy. this comes over concerns over his personal wealth in discussions about how ultra-wealthy people hoard unrealized gains to avoid taxes. he moved to texas. he does not take a salary. as he has gotten more wealthy he has become more aware of that criticism. shery: we will be watching the
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stock as wall street opens monday. we could see downside pressure. perhaps, it does not affect the long-term story of tesla given it is so popular. we are also watching the macro picture. after dovish statements from the fed and boe we are watching emerging markets. the outcome might not be positive given that anytime we have seen the fed and advanced economies tighten, we see capital outflows from emerging markets. bloomberg economics pointed to the vulnerability on these countries, brazil, egypt, argentina, south africa, and turkey. as well as columbia, the most vulnerable as we see these tightening move from advanced economies. haidi: the economic recovery or struggled to get momentum when it comes to china. on the outside of the weekend we had the trade surplus coming in. we are now seeing the export side. i october, the volumes and values exceeding everything we have seen for the whole year of 2022.
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export demand is continuing to surge ahead. midweek inflation numbers, we see the 26 year high. there is a pickup in cost for consumers and waning retail and private consumption demand as the property crackdown continues. so, there are concerns about signs and a stagflation. we will be looking at the data and whether it paints a different picture. let's look at china's economic picture. i want to bring out chief north asia correspondent david ingle in hong kong. what stood out to you? david: you just ran through some numbers. it is a two sided story. you have the mastic slowdown we have seen because of a confluence of -- the domestic slowdown we have seen because of a confluence of headwinds, power shortages, the chaos hitting real estate developers, transportation bottlenecks, selected coronavirus outbreaks
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that have dampened consumer sentiment in china. but outside of china, as world is opening up, particularly, in the u.s. and europe where demand for chinese made products has been surging to, despite the transportation bottlenecks across the pacific and elsewhere to europe, chinese exports are doing very well. in fact, better than expected. exports in october of 27.1%. the forecast for a 22 point 8% rise. it was the 13th straight month of double-digit gains for experts -- exports. throat tober, the exports have already surpassed all of 2020 -- throughout october, the exports have already surpassed all of 20/20. we are back to pre-pandemic levels.
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so, there is the export story. that is the external demand story. internally, there is a lot of stress. imports were up, but not as much as exports, 20.6%. a lot of that is due to: boards doubling because of the power crunches. -- two coal imports -- to coal imports doubling because of the power crunches. we had a couple of coupons do over the weekend. we are still trying to figure out whether those payments were made reaching out to bondholders. that was worth $82.5 million. there is a 30 day grace. period. december 6, we will check back in. this coming thursday, we have coupon payments where the 30 day grace periods will be expiring. that total is more than 148
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million dollars. between all of these, in the last couple of days, 230 million plus coming due. so, it comes at a time where we have seen a little alleviation for another developer that has been troubled and is trying to find ways to pay off its overdue wealth management products, that is kaiser. we got news friday that kaiser has lands to sell some $13 billion worth of property assets to raise capital after missing deadlines on wealth products. but none of these indebted and trouble developers are out of the woods yet. it has been a big confluence is of headwinds facing the diet -- domestic chinese economy. haidi: let's turn to the unusual move over the weekend by tesla ceo elon musk asking his millions of twitter followers whether he should sell a 10% stake in tesla. most respondents said yes.
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bloomberg's su keenan jones with the latest. su: analyst estimate we could see a dent in the stock of 6% to 7% based on a cryptocurrency parallel to the tesla stock. we know that musk is a high profile ceo often engage with his followers and fans on twitter. this weekend was no exception. the idea of selling a 10% stake in his tesla stock related to his tax gains. much has been made lately of unrealized gains being a means of tax avoidance. he asked people to come back with yes or no. paul went out on twitter saturday. -- the pole went out on twitter saturday. with about 58% of respondents backing the idea of the sale on the question of to sell or to
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sell. musk said in a follow-up tweet that he was prepared to accept either outcome. but, if he does follow the survey, it appears he would go ahead. analyst say that could put a dent in the stock monday. we should point out that the big picture for tesla stock is strong. it has soared 73% this year giving it a valuation of 1.2 trillion. that -- we know that if musk were to sell his 10% stake, about 20 been -- 21 billion worth of stock, that would be at 80% increase in the normal volume that we have seen over the past quarter. so, there will be that as well. it is also interesting, again, that he reached out for this kind of issue to his followers. it gives a heads up as well as to why he might be selling.
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haidi: su keenan with the latest on tesla, twitter, and elon musk. let's get to vonnie quinn with first word headlines. vonnie: joe biden will sign off on the biggest u.s. infrastructure plan in the decade. the house passed the bill -- the bill late friday night. the $550 billion measure includes measure -- money for roads, bridges, expanded broadband, clean water, power grid upgrades, and solution -- pollution cleanup. flights from the european hubs to the u.s. resume monday. british airways generated $1 billion of revenue each year, making london's heathrow by jfk in new york. analysts expect lower demand with slides limited to the fully vaccinated. -- flights limited to the fully vaccinated.
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indoor limits of one person per square meters will double to one person for every two square meters. limits will be listed in hospitality venues while stadium and cinemas can operate at folk capacity. australia hit its 80% full vaccination target over the weekend. the recent glasgow cop 26 summit enters its second and final week. limited progress is not enough to avoid climate catastrophe. pledges so far from governments seem to have failed to keep a global temperature increase to the 1.5 degrees in the paris agreement. global news, 24 hours a day on air on bloomberg. shery: ahead, fernando at the monetary authority of singapore
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joins us to look at how web 3.0 will say the business models in the digital economy. next, we discussed china's latest trade numbers. this is bloomberg.
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haidi: this is daybreak: asia. we are looking at the demand side of the supply crunch in the u.s.. excess demand in the u.s. is dwarfing that of the euro area. with higher wages, spending is bound to ramp up again. south korea said its tech firms will provide some semiconductor data to the you -- to the u.s.. tsmc is also giving some information. though, it is withholding customer specific data to
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protect confidentiality of clients. while the request is voluntary, gina raimondo has warned the white house might invoke the defense production act if they do not respond. shery: china's record monthly trade server was provided clues to the fate of the supply chain crisis. as of october, the cone you meal it of total was almost as much as the full total in 2020. exports rose 27% last month despite disruption. haidi: haidi: bloomberg users can read more about those stories in our newsletter supply line on the bloomberg terminal. let's discuss china export data in more detail with alecia. what did you see the trade numbers that could give you
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clues as to the state of the supply chain disruption? what are we suspecting this week a given that we get ppi numbers? alecia: thank you for the invitation. what i have been seeing for a while is getting worse now because we are seeing the same thing at an accelerated pace. that is, chinese experts -- exports. europe's industrial production is not recovering fast. somebody has to produce. the production is coming with delays. that is related to lack of movement from covid affecting, clearly, the speed of supply chains and therefore prices. it is not only about energy. it is also about lack of movement across borders. so, in china we see that. but, we don't see many of the imports we should be seeing
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given that the chinese economy so far, we are thinking, fourth-quarter might grow 2.5. that is irrelevant for the imports we are seeing. imports are repressed. that is why we are having such a huge trade surplus. china -- shery: given those disruptions and the factors weighing on the economy, the chart on bloomberg's showing how the pressure has been felt in the broader real gdp numbers, construction growth has shrank. real estate growth actually is contracting for the first time since the pandemic. given the ongoing crisis at ever grant, -- evergrande, what is your outlook for the sector?
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alecia: the sector is not doing well because it will become a utility. we have seen some easing on macro potentials regulation, making it easier, lower down payments. at the same time, i think there will be easing on the ability perhaps to get access to that market. that will basically be low increases in housing prices. that is a utility to me. it will be managed prices. many developers will think twice and move to more profitable markets, as we have already seen with evergrande. places where subsidies actually stand. i think it is not flowing but settling. shery: how do you characterize
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the supply chain crisis and what it means for ongoing recovery and these risks that some economists are saying are stabbed -- stagfaltion. alicia: is not stagflation this is inflation because of reasons related to supply but not lack of demand. demand is there. the economy is not in a recession. they supply is not responding appropriately because we have a lot of unexpected shock. one is that for one single covid case, stocks have humongous leg disrupted. that is where we are today. on top of that, we have an energy crunch related to the
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energy transition. this is not about, not contributing to our air force do not have too high energy prices. it is different from all the speculation we used to know. this is about an economy that is recovering in a way that that is not beyond the supply chain. you also have geopolitics getting in the way. that is new. that is created additional problems for supply chains. that is very different from stagflation. shery: always great to have you with us. coming up on daybreak: asia, we will be taking a look at how china's redwood creek crackdowns would impact softbankroof's
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latest earnings. this is bloomberg. -- softbank groups latest earnings. this is bloomberg.
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shery: we are counting down to the start of trade in tokyo. in south korea, chipmakers will provide data on semiconductor inventory and sales to the u.s. following a request from the commerce department. north korea also condemned the and artillery fire drill saturday after the u.s. and south korea held a five day joint air defense exercise. the south korean finance minister appeared in front of the -- appears in front of the parliament budget committee in the coming hours. in japan, a broad easement of covid border control measures allowing in students and business travelers. we are watching should say bank
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after -- shinsei. softbank groups announced its second-quarter results after the bell in tokyo. haidi: we are joined by our asia tech reporter in tokyo. what are we watching for? >> these days, softbank earnings are all about the vision fund, there humongous investment arm. the last quarter has not been great for softbank. record quarter after record quarter, three back-to-back. we have seen a slump in the past quarter. this one, we are expecting the results to be read because softbank has a large portfolio
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of public shares that include uber, doordash. pretty much across the board and those numbers are red. analysts are estimating the company will lose around 18 billion in unrealized losses on the public portfolio. this will be just a short of the company posted in the fourth quarter of 2019, mostly, because of the gains in private valuation. generally speaking, this is not a good quarter for softbank group. haidi: shery: shery: -- always we are watching if they will be carrying out another share buybacks. what do we know? possible --pavel: every quarter we hope for a signal the buyback is coming but expectations have tapered down a bit. softbank shares are down about 40% since march.
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the reason is he has shown increasing willingness to cash in on his investments but the far he has left all of the funds into his new vision fund too venture which now has around $40 billion -- vision fund two venture which now has around $40 billion. there is little suggestion he is willing to step in and prop up above the shares. he is all in on his investments. shery: what is this saying about his chinese investments that have been hurt given the crackdown there? pavel: it might take a year to two years until the company can get back to business as normal in china. that is how long it might take for regulations to settle down. we would like to hear if he feels things have changed recently. that is a question we will be asking. shery: up next, a big interview
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with the monetary authority of singapore about plans to become a global crypto hub. 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.
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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 vonnie: china posted a record at
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most -- monthly trade. despite global supply chain disruptions, exports rose 27% from a year earlier, more than $300 billion. that was the 13th straight month of double-digit growth. imports increased 21%. china's exports through october have surpassed all of 2020. china's grid says power supply
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has returned to normal across much of the country. the power distributor says electricity is only restricted in some industries. it warned it will face a tight balancing act over the winter. the company supplies power to 1.1 billion people with a service area covering 88% of chinese territory. tsmc says it has responded to a u.s. request for supply chain information to address the global chip shortage. while ensuring no customer specific information was disclosed. south korea says tech firms will provide some data after negotiations and information will be submitted. elon musk's social media followers this -- voted that the tesla chief should sell 10% of his stake in the electric carmaker. about 58% of 3.5 alien twitter
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users estate they support the move -- 3.5 million twitter users said they support the move. global news, 24 hours a day on air and on bloomberg quick take. i am vonnie quinn and this is bloomberg. haidi: singapore's fintech festival kicks off today with web 3.0 as this year's theme. let's look at this will that's how this will shape new business models. joining us now is the monetary authority of singapore chief fintech officer. web 3.0. what does that mean for everyday people? >> good morning. we are all trying to understand what web 3.0 is all about. let me try to explain that.
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let me try to frame it so we all get this right. when the internet started, it was all about a machine where you could log in. a lot of the machines were connected with underlying tech protocols, seamlessly, peer-to-peer. now, web 2.0 is all about when we decided, you know what, when you are going to a bank or a travel agent, let's digitize that on the internet. we took the institutional power of centralized structures onto the internet. what we ended up with, because of the growth of data and the scale of that was institutional
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databases sitting in for different institutions, all of us having our own information in different spots. so we go to the bank on a digital platform. we go to social media. we can provide content to them and they provide content back to us. now, wait a minute. we designed web .1 as this very open source peer-to-peer network. what happened? let's go back to that again. so, we have a different construction in mind. haidi: a big part of the disruption has been decentralized finance. a big part of that is stripping traditional institutional financial intermediaries. do you embrace that?
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how do you embrace that and yet control the risks involved considering how it can function alongside that? sopnendu: in the web 2.0 we are saying that this system may not exist anymore. the highly centralized intermediary. in the world of finance, we have banks. there are different institutions and there is a role they play. the tech community is saying you can get rid of the structures. you can have peer-to-peer connecting that would transfer money. we have programmed a smart contract and can have a different structure. but, this is a technology framework. they are also exploiting the technology to add value to the existing structure. i am sure we will experiment as we go down this line.
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haidi: singapore is trying to be a global crypto hub, right? that seems to be your mission. how competitive are you against other cities in the world. here in new york city we heard from the mayor elect that he wants the schools do start to teaching about cryptocurrency and to build a pipeline of talent. sopnendu: i think you answered the question. we are focused on what is a technology? that is what we are focused on now. we are ensuring that we understand underlying technology. that is a big focus right now, to understand the basic structure. especially with finance. we did a big experiment on how to apply to underlying technology in our payment system. that led to the establishment of that infrastructure. we are looking about -- at how to imply this -- apply this
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underlying technology on a different use cases. that is how we lift the global market. haidi: so many new players, right? whether in the payment industry or the crypto industry. do you see any consolidation in the next couple of years? sopnendu: that is one of the fintech spaces you see a lot is the payment space. the public risk on the payment space is becoming more advanced. that is where the fintech payments company is going. now that you can move money with a digital clique, there is no need. when you connect countries, there is a lot of consolidation. haidi: give us your outlook for
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new digital banks and also what that would mean for the traditional lending space. could we see cannibalizing of this industry? sopnendu: you will see some cannibalizing because the digital bank will offer products on the mobile phone. it will be more efficient. it will be more competitive. we will have to see the trust factor. will the trust shift to a digital bank? if that happens, there is huge competition in that sector. haidi: how open is singapore's capital market for new venture investors? sopnendu: you see the numbers in singapore. last year we had one billion plus investment in the sector. this year, almost three times the number.
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so, it's growing. investors are deeply entrenched in the space because it is the future. they are willing to risk capital, especially, post-covid. there is a huge demand. a lot of the companies are getting access to capital. there is a long path to growth. there is a lot of investment in the opportunity. there is collaboration, whether it is finance or extended finance. there is a lot of attraction for investing. haidi: given what we are seeing with china darting to ban transactions of cryptocurrencies, do we risk falling behind in this global trend by not embracing what this technology can offer? sopnendu: i think we are embracing the technology. there are many use cases.
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you see a lot of adoption happening. from the technological option i don't see much risk. but we should not confuse that with the cryptocurrency, a speculative asset. the issues are there. a big part of that option is the effort being made to understand the technology and how to apply it in different sectors. there is a lot of speculation. haidi: it was great having your inside. thank you for joining us. mas chief fintech officer there. do not miss another big interview from singapore later. the second minister for finance joins bloomberg markets. coming up next, brace -- speaks
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to bloomberg about solving indonesia's biggest health care problems. this is bloomberg.
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grace tahir's is leading the
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charge into genderless investing, a growing trend of money to work in areas that has a positive impact on society. grace comes from two powerful indonesian bins this -- business families that control huge conglomerates spanning retail, and financial services and health care. as president director of a hospital she is focused on harnessing technology to solve the nation's biggest health care problems. this is what she told bloomberg's hosni on the and this exclusive interview. hosni: if you look at the health care situation in indonesia there are three main problems. access to facilities like hospitals. access to the doctors, the physician, the nurses. and access to treatment, right? it is not just the cost in terms of the ability to pay for health
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care. indonesia is huge. so, if you want to be able to build a lot of hospitals in indonesia, it would be impossible. yes, you could admit a lot of capital and human resources that might not be available because the ratio of doctors and nurses in indonesia is low even compared to neighboring countries. technology has to be the driving force to solve these three issues in indonesia. i want to be at least it be able to do number one and number two, to provide access for health care facilities and doctors for technology. we maximize the use of our doctors and hospitals by using telemedicine, by using ai. all of these things, we have to incorporate. if you want to do it the old-fashioned way in a very off-line way, it will take much more time, much more resources,
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much more capital. unfortunately, the need is very urgent, especially in a covid situation. hosni: how is covid changed the health care landscape in indonesia? how do hospitals play a role to overcome problems in the future like future pandemics? grace: the one good thing about the pandemic is i noticed more indonesians are more aware in terms of their health. through the pandemic they have become more curious. they have become more careful. they have become more attentive. if you look at the sales of off the counter medicines and supplements, we have increased because of that. where this is a big part of the pandemic. do trade our health care workers and doctors, don't be complacent. i am thinking, all of this time.
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at the same time, this pushes doctors who have always been resistant to technology to adapt to technology. >> grace, you are an asia -- you are an angel investor. you put money into companies founded by women. why? grace: in the beginning my angel investing was not strictly for females. i do have some privilege. where i come from and who i am. it is right for me. i am able to give back for others who want to start something you don't have that kind of privilege. it is how i started to become an angel investor. an issue i am passionate about is female empowerment and gender equality in indonesia. that is why i have been focused
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on female lead startups or startups focused on helping females. definitely, female health care is something i am really passionate about. haslinda: you grow up with two other sisters. you have three daughters. what are your aspirations for your daughters in the context of the challenges women face today? grace: my aspiration for those them is that they are able to have a society down the road in asia, where they will be living, that they will not have to fight or speak louder just because they are women. you know, right now, at every stage, we females encounter that we have to speak louder, do more to be seen, to be heard, especially in the tech industry, which is very male-dominated. so, i really want that to change for my young girls. haslinda: what you think it will
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take for us to reach the tipping point for technology for women in the industry? grace: we have to produce more successful products founded by females. if female funded startups do not go anywhere, there will be more pessimism. there will be more skepticism to female business owners. haslinda: which women startups have picked your interests? grace: i am interested in health care and anything to do with female health empowerment. i just had a conversation with a company that does ctg, the cardio technology you use to measure a babies heart rate. that is to reduce the death rate of mothers and babies as well. haslinda: give us a sense of companies you have already invested in.
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grace: the last one was with two other girls. one is an influencer. one is an entrepreneur. we wanted to do a feature creating products that will help with accessible care for indonesians and globally. products like administration cup, fillon and wipes. -- administration -- a ministration cup and feminine wipes. philanthropy has been something that has raised a lot of debate. and out of the second generation wants to not just make profits, but, make an impact. i think that it is expected from the society these days. it is expected for big companies
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, not in a traditional cfr way where you are dissipate in an event. it is not like that anymore. but in a larger scale, a global scale. so, definitely, the trend is that. now for me, for our family, we have to be people who start to also inspire the other companies to be able to do that as well. so, if your family businesses, more conglomerates are doing it. then, we will see that trend taking place in other companies as well, in other conglomerates. haslinda: would you say that business runs in the blood? it is not just your father, it is your mom. it is two big conglomerates. grace: it is more about working. be more productive. that is what i would say. i would point to one person who really impressed that upon me. that is my grandmother from my
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dad side. she is 90 years old. she still goes to the office. she is still working. she once told me that to be able to work, to be able to produce something from your work is a privilege. when you wake up in the morning, you have to say, thank god we get to work. so, for her to be able to be that -- at this age that she still wants to do it it is such an inspiration and testament to everyone of us. haslinda: mayapada hospital director grace tahir. haidi: let's get a check of business flash headlines.
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berkshire's cash pile hit a record in the third quarter at nearly 130 $60 billion. walmart boosting profits to 18%. their record came even as berkshire poured more money into buying back its own stocks, surpassing the amount it employed in apple. blackstone has walked away from crown resorts with no plans for a new offer for at least 18 months. the casino operator rejected the most recent bid of 6.5 billion dollars in may. any deal. marvels internals brought in $71 million in north america on its opening weekend. representing a rare miss for the studio. internationally, the film generated over $90 million. last month, north american box
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offices hit a high for the pandemic era. they are still short of totals before covid. more to come on daybreak: asia. this is bloomberg.
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haidi: good news when it comes to the virus, the vaccine, as
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well as treatments. we have heard that pfizer's new treatment pill for covid has been shown to be highly effective. all of this is spurring interest in the travel and hospitality and reopening trade. in other people are getting vaccinated. i'd -- in australia we hit 80% over the weekend of the eligible population. every so concerned that if you get covid you could react poorly. shery: the chart there is showing optimism in the markets given that this pfizer pill could be more effective than a similar drug from merck. tracking -- sophie is tracking how markets across asia are gauge and reopening opportunities. sophie: pfizer's anti-viral pill will potentially lift travel and tourism. with australia reopening to global travel and the sydney airport agreeing, we are seeing
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shares of the stock gain ground by nearly 2.2% this morning. we are seeing the reopening providing a boost to australian bonds this morning. we are seeing all the shares fluctuate. we have sectors like financials weighing on the index. energy shares are gaining. oil is higher. wti rose 3.1% friday. switching out the board, this wednesday evening, we are seeing under pressure. futures lower. goldman pointing out that the friday's jobs data lays a foundation for higher yields. markets are assessing a potential for more economic stimulus from japan. we have the dollar-yen trading around 113 levels. we could see a push above 115.
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this is one year options showing how traders are becoming more dollar positive, reflecting a shift in inflation and risk outlook. haidi: coming up, more market analysis. this is bloomberg.
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i am shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. major markets are opening in asia. inflationary pressures with china's export surge and optimism on covid treatments. beijing's crackdown hits the
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softbank vision fund portfolio. tesla shares taking pressure after elon musk twitter followers tell them to sell 21 billion dollars worth of stock. shery: we are seeing -- sophie: we are seeing moves in japanese stocks. after the u.s. congress passed a one point $2 trillion infrastructure bill on friday to repair and rebuild bridges and roads in the u.s.. we have the yen trading in the 113 level. you can see a push to 115 according to our colleagues at the fund marketing. we have seen a shift in the inflation outlook about that as well. keep an eye on the reaction to the opinion for the october meeting. the economy is likely to recover with pent-up demand. we have seen a messy travel rebound in japan that has helped
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spur recovery for japanese airline. recover for doors of pfizer's antiviral pill. in seoul this morning, a three week drop friday staying low the 3000 level. today we have a budget committee holding a hearing on that. we are looking at earnings from sk networks ngs holdings. chipmakers in seoul, firms expected to provide data to the u.s.. samsung shares rising by about one third of a percent. the mood in sydney this morning we are seeing much relations for the aussie share market, sydney airport gaining for a takeover. we are seeing australia reopening's to travel. check out the aussie dollar. weakness continues while the
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offshore you end is holding the 640 level. trading out from china over the weekend. s&p under pressure as we count down to inflation data from the u.s. this wednesday. down the board over at berkeley, they are expecting key risk going into next year. strategists are expecting sags that instead -- stagflation may wane. if sticky inflation does for central banks to respond inflation -- aggressively. shery: short-term pressure on asian markets including -- according to the senior investment strategist. it is great have you with us. that's me get you started with
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this chart. we can see how broader emerging markets are under pressure as opposed to the s&p 500. you can see the level of discount versus u.s. stock. we see levels we have not seen in 20 years or so now tightening the move in advanced economies and capital outflows potentially from asia. are there any other markets or economies that could be more resilient in this environment? >> if you look across the whole spectrum of em, the markets are facing similar pressures, basically, the normalization of policy by the fed, fears about inflation, and, that will impact the growth outlook for the region in asia and other markets. on top of that, investors are concerned about the tech sector, which i do not think is finished.
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although, the worst may be behind us. short term factors will keep pressure on asian markets until we see more benign forces come in, probably after the middle of next year. until then we will likely see more pressure on asian markets that will keep the markets range bounded. shery: where you go in the meantime's in? chi: i guess you avoid the sectors being hit by policy divergence between the region in the u.s. and also avoid the sectors that are under regulatory scrutiny. those would be the e-commerce and tech sector. there is a place in the short-term for safe havens like hybrid bonds in china and of course cgp than things like
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that. look for pickups in markets in the short term before we see benign market forces come back. haidi: will you take us through the opportunities that come from policy divergence as a central banks begins to normalize? what jumps out at you from some of those strategies? chi: i think that if you go across the pacific into the u.s., short-term, we are seeing more downside for u.s. bonds, because of the pricing in of rate hikes by the u.s., it is still not quite certain about. tapering is certain already. on the other hand, because of the strong growth in the u.s. and the reopening of the u.s. economy and so on and the most recent news about bidens infrastructure plan, there will
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be positive focuses -- forces propelling the u.s. stock market higher. i think that u.s. stocks in the next half year or so. there will be short-term downward pressures. if you look beyond the short-term horizon into next year, likely in the second half of next year, we will see a reasonable recovery of chinese stocks in the tech sector, because of the further eating by the chinese authorities who helped stabilize the chinese economy, which in turn will help the beijing growth outlook. china's type -- tightening campaign should fade by the middle of next year. that will give chinese tech stocks a boost for recovery. haidi: the supply chain crisis has been a popular trade when it comes to the enthusiasm around a
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semiconductor chip stocks. will that continue? chi: the disruption is a wildcard because the market expected the disruption to finish by now. but it is still going on. the covid issue is still around with new variants emerging and things like that. i think that the transitional inflation environment tied to the supply disruption story. in the end, the disruption is going back to global. a lot depends on covid development and assuming there is no more significant infections going forward in the next six months or so and with a new vaccine coming out helping to cure the disease. the world should get back to normal within the next six months or so. the supply disruptions to -- story should fade in the coming months. that will bring us back to
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normal life and all of these benign conditions for asian stocks or emerging market stocks to recover. haidi: always great to have you with us. let's get to vonnie quinn with first word headlines. vonnie: elon musk's social media followers voted that the tesla chief should sell 10 percent of his stake in the electric carmaker, worth around $21 billion. about 58% of three point 5 million twitter users. the world's richest person posed the move in a tweet citing recent concerns about hoarding unrealized gains to avoid paying taxes. tsmc responded to the u.s. request for supply chain information to address the global chip shortage. ensuring that no customer specific information will be
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disclosed. the commerce department asked companies to fill out questionnaires by november 8. south korea will provide some data after negotiations. flights from european hubs to the u.s. resume monday. reviving some of the world's most lucrative routes. before the plandemic close borders, british generated $1 billion of revenue making london's heathrow in new york. flights are effectively limited to the fully vaccinated. flight restrictions in australia's most populous state ease monday for fully vaccinated people. one person per four square meters will double to two people per two square meters. stadiums and cinemas will be able to operate at full capacity. australia had -- it's 80% fully vaccination target over the -- over the weekend.
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i am vonnie quinn. this is bloomberg. shery: ahead we will discuss china's property bond market with cms managing. the chinese communist party against a plenum. live to beijing next. this is bloomberg.
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♪ shery: china posted a record monthly trade surplus in october. exports surged to despite global supply chain disruptions. let's bring in stephen engle in hong kong. taken as a whole, what is the overall picture? stephen: clearly, the trade situation is helping offset a lot of domestic headwinds in the chinese economy whether it is
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real estate, the power problem, sporadic breakouts of the coronavirus, this has dampened consumer spending and sentiment. of course, you still have globally supply chain bottlenecks. but again, exports are really beating expectations in october. it is the 13th consecutive month we have seen double-digit gains. the big spike you saw in february was seasonal distortions. it has been steady gains for exports in china. in fact, exports through october already have surpassed all of 2020. we are already at pre-pandemic levels on the export front. up 27 point 1% in october. the consistent estimate was for 20 2.8%. imports are good, not as strong, up 20 .6%, leaving a surplus of
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84.5 billion u.s. dollars. call imports are doubling year-over-year in october. again, we got a separate note from sheen walk citing chinese -- the power crunch is starting to alleviate in china. overall, it is an external demand situation as the u.s., europe, and other big markets are opening up. demand is hot. chips are packed and parked. china is benefiting shery: shery:. stephen engle in hong kong. let's stay with china. after a year-long crackdown wiped trillions of dollars from the values of chinese equities, investors are on high alert for the chinese communist party plenum getting today. john, this is coming in the shadows of the power crunch, not to mention, the supply chain
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disruptions. what are some sectors we should be focused on into this plenum? john: we should get a statement on -- at the conclusion of the plenum thursday afternoon, maybe late in the evening. investors, the market, will be on the watch for anything said there about property, for when -- for one, the state of increased scrutiny i have big tech in china for another and how xi jinping's push for common prosperity will be prosecuted over the next few years. overarching for the plenum, the number one agenda item will be the resolution of the first 100 years of communist party history. whatever the outcome of that resolution is, xi jinping is sure to play a prominent role in the retelling of history, giving him the mandate he will need a heading into the end of 2022 when we have the party congress to take on an extended term in office to continue to run the
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world's second-largest economy. haidi: historically we have seen these resolutions from now. does this set him up to be -- from now -- mao. does a set of up to be a leader for life? john: they will be putting xi jinping on mount rushmore, essentially. to be able to have the resolution will require the amount of consensus among the elite in the communist party that will give him the support he needs to be able to push for this extended term in office. obviously, with that in hand he will have the ability, the tools by which to prosecute his vision for china that includes common prosperity, it includes greater national defense. it includes a more assertive stance when it comes to
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diplomacy. haidi: our china executive editor there in beijing. next, twitter has spoken. we'll elon musk comply? and sell $21 billion of tesla's -- will elon musk comply and sell $21 billion of tesla stock? this is bloomberg.
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♪ haidi: honda falling in tokyo after the automaker signaled that the global chip shortage is hitting its bottom line. the company cut its forecast through march saying it now expects profit of $5.8 billion, lower than analysts average projection.
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berkshire has a cash pile hitting a new record in the third quarter, nearly 100 $50 billion. many other is this is bounced back from the pandemic slump, boosting operating profit to 18% , even as berkshire pours more money into stock buybacks. blackstone walked away from ground resorts with no plans for an offer for at least 18 months. the report outlines lax own view that crowd is not in an investable state and any deal is at least two years away. shery: tesla ceo elon musk asked his millions of twitter followers whether he should sell a 10 percent stake in tesla. most respondents said yes. su keenan joins us.
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su: we could see tesla stock done as much as 7% because we are seeing a cryptocurrency version of tesla shares down by that month. elon musk is often on twitter engaging with fans and investors, but, this was really unusual. he floated the idea of selling a 10% stake, asking his millions of followers should he sell and alluding to this fact that this was a tax related so. most of the respondents said yes. musk said in a follow-up tweet he is prepared to accept either outcome, not saying when. analysts say the stock could be down. the story is not negative because he has saying it is tax related.
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haidi: he has been saying for years he would be the last person to sell tesla stock. why the change? su: he wants more liquidity than what he is able to get through cash and borrowing against the tesla stake. there is increasing evidence that as the stock has stored, he has become the world's richest man and there has been a growing number of portrayals of him as a symbol of rising inequality. we are told he is very sensitive to that. he was recently named in a profile by pro-public that he is one of the billionaires paying very little taxes. he moved to texas last year, which does not have a personal income tax. so, one of the ways it was pointed out that he was avoiding
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paying taxes by holding onto stock and not cashing it in. perhaps, he is looking to remove that image. last week he talked about selling stock. when the u.n. put out that the billionaires should help in alleviating the poverty that exists in the world, musk reportedly asked what $6 million might do. that was the first time he had haidi: haidi: talked about selling stock. softbank group is sent to report earnings in tokyo later. what is in store for the vision fund? pavel: softbank earnings always have a lot of moving parts. holdings at alibaba and telcom. these days attention is on the performance of the vision fund. the vision fund has had a great
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run this past year, it beat record profits for three straight quarters. we saw a slight downturn in the previous quarter. it is really in this quarter we will see the impact of regulation in china and the down on companies there. and general underperformance of this public portfolio company. analysts estimate a -18 billion dollars in valuation deadlines in public portfolio alone. the final loss will be less than that because we expect some of the private valuations to go up. but all in all, this will be the worst quarter for soft rank since the worst quarter ever, the last quarter of 2019 in the pandemic. shery: what are we expecting in terms of profit in china by the vision fund? pavel: he expects it might take
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a year to two years for regulations to sell in china -- to settle in china. in the meantime, headwinds might continue. he suggested the company will pause investment in the country and suspend -- the company has backtracked from some of those comments but we have not seen big deals in china so far. performance of its portfolio in china has been horrendous. it is across the board. that will be one of the questions today, how we see regulations going forward. clearly, it patched in to people like alibaba jack ma. haidi: we are always on the buyback watch when it comes to softbank. pavel: this is the elephant in
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the room. softbank shares are down 40% since march. the previous buyback about which was a mammoth 25 billion dollar repurchase ended in may. since then, softbank has been sliding lower and lower. the discount to the value of total shareholdings of the company is about 50%. that was typically enough to get some back into the market. but he has been holding off. instead, funneling more and more into vision fund two, the second vehicle in his investment arm that it now has about $40 billion in capital. so, while the hope is still there, i think, it is getting more. shery: bloomberg's tech reporter. next, payment deadlines are
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looming and grace periods are expiring for china's property sector. we will discuss the poppel -- the possible outcomes. this is bloomberg.
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>> this is daybreak: asia. china posts a monthly record trade surplus. exports rose 27% last month, more than $300 billion. the 13th rate month of double digit growth, leaving a trade surplus of $85 billion. china's exports have surpassed all of 2020. china's state grid says power
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supply and demand has returned to normal, according to the state media, the distributor says electricity is only restricted for some industries. however, it also warns it will face a tight balancing act over the winter. the company supplies power to 1.1 billion people with a surface area covering 88% of chinese territory. president biden says he will sign off on the biggest infrastructure plan in decades. the house passed a bill, a crucial victory after the voters handed democrats defeats last week. the measure includes new roads and bridges, as well as expanded broadband, clean water, power grid updates. protesters rallied in the streets of glascow. their message is limited progress of the talks is not enough. activists say pledges so far from governments, corporations and money managers are set to
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fail. 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 vonnie quinn. this is bloomberg. shery: the push for decarbonization putting pressure on minors, let's turn to sophie for what to watch. sohpie: the jury is still out on whether efforts by companies like bhp will meet the targets, and we have some flexing for recent deals. we have the latest announcement it is agreeing to sell 80% stake in a coal venture, $1.4 billion deal, so far that is helping lift the stock. check out what is going on with sydney airports, rising 3% on the back of its deal to sell for $17 billion to a consortium, as
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australia reopens to international travel and optimism over reopening, the global travel coming back, that is helping lift stocks across the region including japan airlines, gaining more than 4.5% this morning. but they are warning the lack of international travel recovery from japan may drag on stocks like jal in tokyo. round one chairs, we want to highlight this stock, and operator of bowling alleys and videogame arcades in japan, the stock is rallying, looking to the u.s. and japan recovery helping lift prospects for the company. checking out the broader market view this monday morning, taking a look was going on around the region, seeing a mixed bag, the kospi off by more than 1%, below 3000 points. the asx up by 1/10 of 1%.
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we are seeing the nikkei gaining ground along with stocks in wellington. haidi: let's take a look at china's credit market, evergrande. our next guest says he is more concerned about the grace period for the payment missed back in october. joining us is the manual director at asset management in hong kong. great to have you with us. do you think they will be able to get it together? gary: thank you for having me. based on what is happening, i think evergrande has a similar interest payment, and eventually those will all pay towards the end of the grace period. for the one due in october, the bailout is november the 10th. nothing fundamentally has changed, so evergrande is aware.
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it will have a domino effect across the industry. so many of its peers have faced much more pressure over the last month, there will be very careful around what happens with this interest payment. personally, i believe they will be able to scrape something together and make the payment. haidi: in the meantime, the selloff among property developers has resumed. take a look at this chart, the broad high-yield other bond space in china. china high yields are above 22%, as we see that selloff continue to play out. does that mean investors are convinced the situation is ring fenced? who is more fragile here? i know you are not optimistic when it comes to kaiser. gary: kaiser has some difficulties. last week, we started to hear
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news that it has problem repaying its wealth management customers, and also people view kaiser as a much larger version, the business is heavily focused on urban upgrading process, especially shenzhen. the government took an emergency meeting last week, even though the market has not heard anything concrete from that. he believed the government is trying to do something to assist these companies with future payments. the market itself, i will say confidence has hit rock bottom. on a positive note, perhaps due to highly leveraged accounts, whether it is professional investors or individuals or institutional accounts. any price movement from now on
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will be linked more directly with the company's credit profile. shery: you were mentioning some moves from the government, what can we expect in the future, and can we expect some broader monetary easing in order to support all sectors of the chinese economy? gary: if we look at the whole credit situation in china, it's been tighter than most people expected. for individuals, the short-term loan did not increase as people expected because covid has been coming and going. for the long term personal loans, it is mostly mortgage, everyone knows the property market is cooling down. for financial institutions, because of all the headlines around the property sector, they have been very reluctant about lending money to developers. overall, it is contracting a little bit more than the market was expecting.
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going into q4 and perhaps the new year, we will see the pboc and regulators -- they have quite a few tools like adjusting the lpr rates, or even going as far as lowering the reserve ratio again. one thing they need to be very careful about is at the moment, they are tending quite high, even though the cpi itself is low at the moment, that is mostly dragged down. going forward, it's going to rebound at some point, and eventually the cpi will go up as well. shery: it was great having you on. thank you. credit suisse's asia-pacific ceo says the bank will continue to invest in asia, and the medium to long-term trend remains up
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despite the regulatory crackdown. >> as you know, [indiscernible] one of the key things we want to be focusing on. asia is very critical. we're going to continue to invest, because we want to grow and base it on the strength we have in asia. asia has been the fastest growing region. asia will continue to have an important position in selections, etc. the strategy you just mentioned will continue to be important, and we will try to grow in asia for us. shery: how will this change reflect the importance of asia? wouldn't you be losing a bit of competitive edge given these
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markets are so diverse, and they need localized attention and decision-making? >> not at all. we have a very strong stopping point. [indiscernible] the new structure, i think will allow us to grow even faster, as you know one of the things we mentioned, the relationship manager will come to asia. we have an increased balance sheet lending globally on the wealth management side. asia will have a bigger share of
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allocation as well. shery: as business starts to get back to normal in different parts of asia, how do you project the wealth business to perform next year? helman: as you said earlier, we had a slow down the last couple of weeks, technology as well. we are starting to see its building up very nicely. i think going forward we will see activity picking up again. haidi: what about your views on your strength of the chinese business in general, given the various regulatory crackdowns including the property sector? helman: as you know, i have
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been a banker in the region for 13 years, and the one thing i know for sure is the region is resilient. we go through soft cycles, but the medium to long-term is always hot. i am confident whether it is the property sector or just generally, other sectors in china or other countries, we will continue to see some collection and pullbacks, but medium to long term, china is clearly up. activities will come back and we will continue to participate in those sectors and markets. haidi: the asia-pacific ceo at credit suisse. cop26 manage some progress, but will the pledges be enough?
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hopes for the second and final weeks of the summer, next. shery: we are watching macau bank because it is stopping at the moment, as much as 8% at one point. this as we saw the three-month lockout period as institutional investors expiring today. we are talking about a total of 20.3 million shares affected, this as the lockup period ends. we have more to come on daybreak asia. this is bloomberg. ♪
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shery: as climate talk center -- what is your take on how this meeting is going so far? guest: better-than-expected. there has been some incremental improvement, we saw an international agency energy come out saying taking into account all of the pledges, we are
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looking at hitting below two degrees or 1.8, 1.9. the devil is in the details, whether countries follow through. haidi: the u.s. house of representatives has passed the infrastructure bill. it would have been better timing, but does this change the position of negotiators? ali: indeed, as you said, the biden administration was hoping to have this in the bank when president biden arrived. it's a nice moral boost from the u.s. negotiating team. this bill does make some key elements, but the bill back better bill is the most important one in terms of the package of investments, new
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rules that the u.s. needs to implement to be able to hit its more ambitious 2030 reduction goal. whether or not that passes we will know in the coming days, that is the one that will move the u.s. closer to finishing our goal. haidi: the head of aipac research. singapore's financial watchdog is turning to regulation to tackle greenwashing which it considers the weakest link in the push to expand sustainable finance. the managing director spoke with haslinda ahead of the fintech festival. >> i think the main problem that needs to be solved is the problem of data provenance. we have many cases of so-called green investment turning out to be not so green. my fear is people will lose
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confidence in such product. there are lots of technologies being applied, you have a good accounting of carbon emissions and need a mechanism for verification. you could put all of this data on a blockchain, it's decentralized, and you do not need to rely on any single counterparty. the other technological --
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[indiscernible] disclosure is all over the place, but i think the world is gravitating quite well towards a global reporting standard, this work which has set up at the end of this year and sustainability standards abroad. global regulators and central banks -- we are likely to adopt a global reporting standard. haslinda: medic comes to the crypto space, crypto activities are energy intensive. that perhaps goes counter. had you balance? -- how do you balance? >> in the crypto world, they are
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very conscious of this. they know the reality. part two energy intensive. -- far too energy intensive. there are new versions that do not require extensive proof of work, and i have heard of models where the energy intensity is much lower. there is a lot of experimentation. haslinda: taking that into consideration, how are you looking to deploy your green fund? investments amounting to $1.5 billion? where are you on that, and what is the criteria? ravi: we want to make sure players are able to integrate into the process. they go through a careful assessment of their ability to do that. second, their track record in both advancing green investments
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agreement invest -- the to have ongoing monitoring of their investments. it's one thing to put money in, but down the road, you don't know how the project is performing. i do hope we can give out more mandates in the future. shery: speaking exclusively with bloomberg. live past interviews on tv , there you can dive into any securities or bloomberg functions. become part of the conversation by sending us instant messages during our shows. this is bloomberg. ♪
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haidi: evergy says it will sell a stake in a transmission business for $2.4 billion. separately, utility will issue stock to blackstone. as well as a seat on the board.
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first energy says the financing would drive smart grid in clean energy initiatives. we are told that [indiscernible] show note interest in a takeover that would combine south africa's surges -- second and largest. is looking to build its core business. a combination would have a market value of $1.9 billion and help close the gap with its rival. marvels internal talking $71 million in north america, falling short of some estimates and representing a rare miss. internationally, the film generated $90 million, north american box office receipts a monthly high although they are still short before covid. shery: let's turn to sophie for what stocks to watch. sohpie: we are watching chinese
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construction stocks on the back of the u.s. infrastructure bill, power tools seem to be the biggest beneficiary. switching out the board, keeping and i on chinese energy related names as local media report power supply is back to normal. keeping an eye on ctl as it plans to spend on battery plants, plus the stock may move as china considers more support for the energy vehicle industry. in the consumer sector, jeffries cut the price target by 20% after the hot pot group announced plans to restructure. watching for moves in tencent and billy billy after a chinese team made e-sports history on sunday, winning the first ever league of legends world changing to chip title. the waiting game continues for
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whether or not we will gain access to travel on the mainland, local media reporting china may allow a daily maximum order of 1000 travelers without quarantine. that is well below the daily quota saw of 5000. haidi: we continue to watch out for any signs china might change its stance when it comes to the covid zero strategy, doesn't look like that in the short term. we have been speaking to experts, some of them say perhaps it might go on for another year, some say it could be another three or four years. the one thing going is it is such a massive population and domestic market that it may be able to sustain the levels of growth, particularly if we see this rate side remain robust. shery: a lot of chinese people are already vaccinated but the problem is those vaccinations are not as effective as mrna.
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keeping these barriers up will definitely have an economic impact. markets coverage continues as we look ahead to the start of trade in hong kong, shanghai, and shenzhen. standby for bloomberg markets china open. ♪
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welcome to bloomberg markets china open. counting down to the open of trade, the first session of trade. your top stories this monday morning. china posting a record trade surplus, but it can't hide a water slowdown in terms of domestic demand.
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