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tv   Bloomberg Daybreak Australia  Bloomberg  April 5, 2021 6:00pm-7:00pm EDT

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♪ >> good morning and welcome to "bloomberg daybreak: australia." >> good evening. haidi: your top stories, u.s. stocks rallied for record after solid economic data and signaling the recovery is gaining momentum. investors also i a rate decision in australia.
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treasury secretary janet yellen calls for a global minimum tax rate. on the global state she signals out china say washington needs to level the playing field. and the g20 may set a debt suspension initiative, we speak exclusively to the chief economist carmen reinhart. shery: across wall street, finishing at record highs. discretionary communication stocks leading. the nasdaq 100 seeing its best in three weeks. we have reaction to blowup data after the holiday weekend and the friday report showing players out of the most jobs in seven months. also today eyes and data showing the u.s. services industry expanded at the fastest pace on record. we are seeing buyers kisses rising around the world.
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wti selling in the regular session now rebounding a little on ahead of talks on the iran nuclear deal. we are watching these lines on the bloomberg now, financial times, break reporting the credit suisse chief risk officer is expected to depart. we had seen the credit suisse investment banks chief also said to leave as part of the wider shakeup given the archegos capital management collapse we so recently. we continue to see block trades moving markets after hours. sophie: yes, after hours trade for archegos-linked names also on watch after credit suisse is said to have shopped around shares of viacom, as well. stocks that lost ground as part of a margin call fall out. credit suisse adr shares take a
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hit in an attempt to manage risk follow up with an update on losses expected from the bank this week. as you noted, the i.b. chief brian 10 is reportedly set to leave and we are waiting for an announcement that could come tuesday. bloomberg intelligence saying the bank buyback maybe the least of near-term capital fallout. more, weather report the bank is disclosing this month the size of losses related. and we are seeing chinese adr and caught up the drama led lower i tencent music, and that pain continues in after hours trade. bloomberg intelligence saying the archegos meltdown exposing overcrowding in the chinese tech sector. china's markets coming back online today so we are watching for any reaction there. hong kong markets remain closed along with thailand. we take a look at the board, modest gains for asian stocks today. the offshore yuan trading in that 655 zone, on a private read
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on pmi, citigroup saying they will short dollar c and h and the aussie dollar holding is ahead of the rba policy decision this tuesday. no change expected to key rates given the central bank does not expect it will meet targets on jobs, wages and inflation until 2024. shery: more insight on markets now, with the chief investment officer, kim, great to have you with us. soviet mentioned the block trade drama we are continuing to see unfold -- sophie mentioned the block trade drama we continue to see unfold, but it seems the reopening trade is back on? >> reopening trade is on with good region -- good reason. our drops numbers -- our jobs numbers here in the west look like the perfect mix. there are a lot of people watching the jobs numbers, and they were more than we anticipated. not quite a million some of the super optimists had forecast,
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but darn close at 960,000 jobs. the regular person driving around, sees a ton of help-wanted signs. and i see people advertising how much, the starting amount is they can get. so, these, specially restaurants and other businesses that use a lot of people power, they are really looking for people. i think these job numbers will continue strong into the next month at a minimum, if not further into the summer. shery: i have to talk about the tax issue now. we heard from secretary yellen, talk about potentially a global g20 tax rate. >> president biden's proposals announced last week call for
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bold domestic action, including to raise the u.s. minimum tax rate, and renewed international engagement. we are working with g20 nations, to a great a global minimum corporate tax rate, that can stop the race to the bottom. shery: as a long-term investor, do you have to factor these considerations in? >> i think so. you know, the market and -- the markets are collection of stocks. stocks get bought and sold at the end of the day, on what next year's earnings are going to be. and earnings have a tax component, so i think that is very important. now, do i think that some of that rebound might be taken off of the table, because of taxes in america? maybe, near the end of that growth spurt, certainly not the beginning and i think that is
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where we are here, in the re-inflation or at least reemployment trade. but, good luck, janet. i think she is facing an uphill battle to get countries to agree to it. haidi: kim, when you talk about reinflation, i suppose return to normal trade, how does your [-] fit into that? >> i think they rise above it. technology, at least how we are redeploying it lately, has become a substitute for labor. so, as labor costs go up, companies want to substitute some of those technologies for that. so at the very bottom of my risk level in semiconductor companies. that is because semiconductors delivered technology. they are technology, but they deliver it. i think that area is set to grow.
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we also look at 5g, which i think people or consumers and businesses, are looking forward to faster speeds, and some of the more esoteric things that will come along with 5g to drive whatever the next wave of innovation is. so, those are longer-term benefits. i think investors should pay attention to them. haidi: consumer discretionary fashion a particular is something you are looking as we get to the prospects reopening, the reunion dressing thing, if you will? >> exactly, and i think especially the people who really like to buy close and where close -- buy clothes and wear clothes, this is your season. they are to want to look sharp and it may not be something they have bought the last season. so that i think is an easy bet,
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that human beings are vain and clothing companies will be able to enable them. haidi: great to have you have us, kim forrest, apple partners founder and chief investment officer -- capital partners founder and chief investment officer. bloomberg subscribers go to dayb on your terminal. >> the united states is moving ahead with plans to retaliate against six countries, that attacked internet company such as amazon facebook. the u.k., spain, italy, austria, turkey and india, could face tariffs amounting to a billion dollars a year for their digital taxes on american companies. some good targeted sash some goods targeted including pianos and anchovies. officials from iran and the u.s. are set to gather tuesday to take part in talks to end a crisis over the nuclear deal struck in 2015. countries will attend
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negotiation's with the other parties, russia and china, but tehran and the u.s. are not expected to host direct talks. the u.s. has ruled out unilateral gestures. in iran, the foreign ministry says the south korea prime ministers planning to visit tehran to discuss billions of dollars of iranian frozen funds in seoul, as a of u.s. sanctions. tensions have been heightened after a run sees a south korean oil tanker in january as a of so freezing $7 billion of-- seoul freezing iran's funds. the program effective last night delivered $59 in relief to 40 countries in 2020 according to the bank. malpas says more needs to be
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done to achieve economic growth without leaving hundreds of millions of family and poverty -- families in poverty. global news 24 hours a day on air and at bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: still ahead, we have an exclusive with the world bank later this hour, the chief economist carmen reinhart gives us her outlook on the global recovery and risks posed by mounting piles of debt. next, oaktree capital says opportunity has come and gone and the distress that space with the worst of the pandemic, next. this is bloomberg. ♪
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haidi: breaking news, a sell agreement with cleaner way for one of its units, valuing that unit at 2.5 2 billion australian
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dollars and this accord with clean away is subject to eight suez veolia outcome, still trying to find a negotiated solution with veolia on that, if suez reaches an agreement with biella upfront transaction including a tender offer on suez -- agreement with veolia for a transaction including a tender offer on suez. ][-] we are hearing the talks have agreed with the sale agreement that values the unit at 2.5 billion australian dollars and we will get more details on the detail -- on the deal as they get to us. a distressed debt veteran says it is a challenging time for the space as the best opportunities came and went with the worst of the pandemic. he says unprecedented support propping up ailing companies limits the amount of potential
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targets for oaktree. >> we are active around the globe, and there is more to do in asia and europe than in the united states. and, you know, i think we do sing ourselves as investors -- i think we distinguish ourselves as investors by what we do when our strategy is not in great favor. every strategy goes in and out of favor and this is the time to try to be resourceful, and yet maintain our standards, it is very challenging. >> no doubt about it, howard. in 2020 had your your endnote and it was remarkable downturn and snapback up right away. to make money you had to move really fast, a year ago now. i know you raised i think a record amount of capital, oaktree capital management at the time. could you get the money out the door and put a torque fast enough? >> the -- out -- out the door and put it to work fast enough? >> the fund we raised was july 1
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so the greatest opportunities were passed. the opportunities that arose primarily in march and somewhat carried into april and may, we used to complete the investment of our prior fund. so we had a fund that was 30% or 40% invested at the beginning of 2020, and we got it fully invested. that was the best of the buying. >> the market has rebounded, the economy is in the process of rebounding with remarkable speed. at the same time it is uneven. let's talk about some of those disparities particularly things like travel and leisure, are there still perhaps opportunities there, because that seems to be lagging the rest of the economy? >> well, you know the easy calls, the things that are obviously going to rebound, they are not fully back to where they work in times of prosperity and terms of the investment opportunities subsiding. but they are, it is clear they are coming back, they are treated as coming back.
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and to get to high returns these days you have to be willing to extend credit to 70 who is not clearly coming back. >> are there sectors you are still avoiding at this point? >> no, we are open to anything. i mean, our style usually constrains us. for example, to not do technology. but other than that, we are wide open. shery: oaktree capital speaking to bloomberg's david westin. still to come, stability is in focus at today's rba meeting with housing loan approval signaling credit growth, a preview of what to expect, next. this is bloomberg. ♪
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haidi: you are watching
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"bloomberg daybreak: australia." the rba decision is a big event today and policy makers are expected to keep settings unchanged but financial stability and risk will be in focus as house prices continue to serve -- surge along with loans. on the deals front keeping an eye on the clean away till after we heard confirmation of the deal with suez to buy the australian recycling and recovery unit. more on the rba decision whether economics editor now. alexandra, a lot to look forward to despite no change in the headline rates. what are you concerned about when it comes to these, the buildup of financially stability risks we have been talking about? >> a focus on financial stability with the rba releasing at financial stability review friday. this is not a statement, where
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it was announced as policy changes. but we will be watching to see any change in language around our assessment of risk. we did see sydney housing prices rose by the most in 33 years in march and are showing no signs of abating. to date, the army has been happy with lending standards, how they have been upheld, but we will be watching to see if there is any change in language around there, and no doubt the rba's keeping a close eye on the area. back to policy, the rba this month does complete its first one had a billion qe program -- it's first 100 billion qe program and will commence at second 100 billion qe program. the second is whether it will roll the target bond from the november to the april bond. we expect this to be confirmed in coming months. shery: how successful has rba
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policy been so far? we are seeing lower yields and weaker aussie dollar? >> yes, that's correct. i think the rba will be pleased heading into this meeting, given the way that yields have moved, and the australian dollar is also lower so the rv it will be pleased there is comfort there. shery: in terms of the financial stability report we will see later in the week, what should we be watching for? >> yes, as i mentioned, the housing market is an area where they are spending a lot of time. just making sure the lending standards that have been put in place over the last, since the last property boom, that they still being upheld and making sure household services and
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mortgages if interest rates to rise. also a greater focus on job security. we saw the end of last month the rba and government wound up its job subsidy program. and treasury labeled that 150,000 jobs where risk with the wage subsidy program being wound up. the rba is expecting there will be bumps for the unappointed rate, and that obviously has touch for the unemployment rate and that has consequences for financial stability. but the unemployment has been on a downward trajectory since july. at 1130, that will be an indication of the labor market heading into that, as it has to adapt post subsidy -- post the
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waves -- post the wage subsidy program. haidi: a slower than hoped rollout of the vaccination program? >> one benefit australia does have is we largely do have the virus under control. the economy is really benefiting from the borders being shot. australia has been -- australians are being forced to spend their travel money at home domestically. that has regional areas benefiting. there is not that sense of urgency, as in some places in the rest of the world where they are still in lockdown or isolation. the key thing is to make sure the frontline health workers are all vaccinated, to ensure we do not have virus flareups occur like what we saw at the beginning of easter, which would have disrupted a lot of people's travel plans, causing a hit to
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the tourist industry and a lot of workers. shery: economics editor in sydney previewing the rba decision coming up. in the next hour more analysis. ey oceana analyst joins us for what to expect in the rba. and a quick check of latest is this flash headlines. credit suisse says the investment chief is said to be leaving the firm as part of a wider shakeup following the collapse of archegos capital. the exit will be announced as soon tuesday and the archegos related losses, the firm also consider replacing its chief risk officer while sparing the ceo. southbank is acquiring a 40% stake in a warehouse robotics company autostart for $2.8 billion. the deal values the norwegian
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firm at $7.7 billion, and is expected to be completed this month. investment aims to boost softbank's push to bankroll growing robotics and logistics companies. haidi: apollo global management is said to lead a group of investors eyeing a $10 billion taken said aramco's oil pipeline. sources say the consortium is believed to include u.s. and chinese investors and is on the shortlist to make a final offer, edging out blackrock and canada's brookfield asset management. the aramco sale is part of saudi arabia's plan to attract foreign investors. we do have a conversation coming up in a few moments. kathleen: we are going to start with carmen reinhart, the chief economist at world bank. the world bank and in it nash -- -- the world bank imf kicking off the spring meeting with the
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aftermath of the pandemic hanging over the developed world , certainly hitting the world's poorest nations very hard. we will ask about a number of things. if the g20 does extend his jet suspension -- if the g20 does extend its debt suspension for more months is that enough to stem what she refers to as the quietly bring financial crisis that hits mainly in emerging markets but could spread more broadly? later, carlos to make us -- dominguez, finance secretary the philippines, a case study and what carmen reinhart is looking at even other that situation is fairly strong among asian emerging markets, there lockdowns are enforce again in manila where the virus has been surging. what will this do to their growth and what is it me for hitting growth targets? and inflation rising in the philippines, as well as new
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plans they may have to finance the investment they will need to fight the virus. carmen reinhart next. this is bloomberg. ♪
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kathleen: you're watching "bloomberg daybreak: asia." we would like to welcome listeners as the world bank and imf start their spring meetings. the g20 is likely to extend the that service suspension initiative, for foreign nations meets this week but will it be enough? joining us to discuss this and more is world bank vice president and chief economist, carmen reinhart. welcome back, i notice a very busy week and day for you. i want to dive into this question, you been arguing a long time the pandemic has deepened the divide between rich
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and poor. the divide gets worse as some of the rich put their vaccines in place and their stimulus in place to move ahead, and the poor heavily in debt, get further behind. so, is this extension or potential extension by the g20, of extending poor nations'debt payments, going to be enough? >> the resounding answer is no. but i think it helps. it helps in that it is still funneling through the end of this year, not yet decided but probably. funneling the capacity to shift from paying debt, debt service, to the dire emergency needs. so that certainly helps. but is enough, to restore that sustainability in the number of cases, or, more important, widespread, to be the kind of
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catalyst to growth? no, absolutely not. kathleen: what kind of steps you envision being taken? is it something that has to come from the richer nations to the poorer nations? we know what we have seen with this new cohort of countries that lend to poorer nations, including china, it is not just the paris club and have love governments but it is much harder to get these deals done. one of the big criticisms is they often help the private credit or smart and they help the poor nations. >> and it is a good criticism, right? take that dss i, which you mentioned. we have had no private sector participation to date. so, the issue of free writing -- freeriding on the official sector is not a new one, kathleen. that is one of the takeaways from the developing country
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crisis of the 1980's, notwithstanding that, i think we are going to be moving to the next stage, which is, you know -- if you take the poorest countries, the 74 countries eligible for dssi, a little more than half of them are either in debt distress or approaching it. that is going to require debt forgiveness. it is going to require haircuts, on the part of creditors. and there is actually no substitute for that. i think it is the realization that these countries'capacities to repay is not what it was, when those loans were made, when the bonds were bought. kathleen: another concern that seems to be heating up is that
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vaccines, stimulus, u.s. economy picks up, investors bet on maybe some insulation -- maybe some inflation or a fed that moves quicker to start removing some -- stimulus, at the least tapering bond purchases. are you worried this could create the kind of damaging some outflows of money from emerging markets? as the imf is? >> most certainly. look, i hate to say how long ago , more than 20 years ago, i wrote a piece with wheeler nardo lehrman and my mentor from columbia university precisely on the issue of the very central importance of u.s. rates, and how they drive capital flows. the most recent report shows capital flows have weekend again, -- weakened again and
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arthur weakest point since the major shakeout that we saw -- again and are at their weakest point since the major shakeout we saw last spring. kathleen: you weren't emerging markets may have to deal with the need to raise rates to shore up their currencies, to prevent capital flows, and limit the upside on inflation. but, you point outlook, these countries have already been hit so hard by the pandemic all right? so the last thing they need is higher rates. what would this do to countries like the philippines, like indonesia? >> so, look, higher rates are a very tough choice. but don't forget also that countries have thought long and hard, emerging markets have also thought long and hard, to have occurred ---- fought long and hard and emerging markets have fought long and hard.
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and inflation is very regressive in emerging markets, hits the poor hard and its food prices, which make up a big talk of the basket of lower income households. so it is a very tough environment, because you do not want to raise rates in the midst of what is still a downturn. and at the same time, you cannot sit back and say ok, we are not going to worry about inflation. because that also, in itself, is quite a regressive setback. kathleen: did you worry about policy credibility of central bank independence among emerging markets as they try to navigate these very tricky waters? and they run the economy hot and echo the fed, a temper a burst of inflation, and is that potentially undermining them in the long run? >> you know the idea that emerging markets have this full
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independence of monetary policy is just not there, in reality. you know, big economies, what the u.s. does and what the ecb as a whole, does, is not something that is in the capacity of even big emerging markets. witness brazil, which raised its rates in the midst of what is a horrendous health situation, and indeed, recession. that has never been the case. now come your question of central bank independence, i think that is a question for everybody, not just emerging markets. you know, we are heading into a post-covid world, in which raising interest rates will be not without significant costs in terms of what it implies for debt servicing. now, let me get back to the emerging-market question. rates may rise because central
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banks tighten or they may rise because they don't, and inflation expectations rise. so, as i said, it is a tight rope act. a very difficult situation, which is why you hear so much worry around the annual meetings , for the fact that we have a very uneven recovery, with the u.s., and to a lesser degree, europe, doing much better, than not to support countries, but the middle income emerging-market class as well. kathleen: what is the answer here? what do you do? >> look, i think countries have to continue with social policies as long as the pandemic is creating ravages.
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we are seeing new spikes in india. we are seeing spikes in eastern europe all over. south america there are concerned. so we still have, we are still in the midst of an emergency. i think, however, the idea, i think it is very dangerous to say, let's just go back to 20 years ago and give up on all the gains that have been made, in establishing the credibility of central banks, and maintaining a stable environment, which is very important for the households that don't have the ability to hedge against high inflation. kathleen: you mentioned debt servicing just now, and last week he wrote a piece where you
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talk about a quiet crisis in the financial sector, gathering momentum. when we put this in the context of borrowing, pandemic related borrowing. it has pushed up total outstanding debt in the developing world to 25% of -- 250% of countries'combined gdp. how does that constrain what countries can do? what does it mean in terms of this quiet financial crisis? >> but, i think as we have been discussing, there is a lot of focus on what fiscal policy is doing, and what monetary policy is doing. but where does the quieter financial crisis come from? one thing that does not get talked about as much is, from the wealthiest economies to the poorest, there has been considerable amount of temporary moratoria and grace periods,
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giving households and small and medium businesses especially, the ability to withstand the lockout. -- the lockdowns. at some point, those moratoria, those programs and. at some point -- end. at some point, more will be revealed, just how much of the existing debt are nonperforming loans, or how much of the small and medium businesses that have been kept afloat, will have to shuttered their doors for good, in terms of bankruptcies. that is, i do not think without any melodrama, i think that is a real risk. because the longer it takes, for us to overcome this pandemic, the more the balance sheet damage that is being done by this on and off need to shut down, to curtail travel, and any kind of normal activity. kathleen: so i want to ask you
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about special drawing rights. the u.s. treasury department, janet yellen on board notified congress of support from plan the imf has, to let the poorer countries, everyone used are special drawing rights, in exchange for dollars, to pay down debt, or by imports. this is something that will help poorer nations. do a great will do that much to help them? some people say yes but richer nations even more. >> i think, and in these things the devil is in the details, and as allocations get shifted more to those that need it the most, i think it will help the poorer nations. i think the imf needed the additional firepower. remember, in 2008-2009, we have the super mega programs with greece, ireland, iceland,
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portugal. those were record shattering programs. the imf got an injection of sdr's at the time and it was needed, and i would say even much more universally needed now. so i think that, again, you know come the allocation will, in the end, be favoring also those countries that needed the most. but it is still not a substitute for debt write-offs. i think creditors, private creditors, official creditors, whether china, u.k., france, saudi arabia, whoever, will have to come to term, along with the bondholders and commercial lenders, that debt restructuring -serious debt restructuring - will be needed for these
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countries, to be able to restore some element of the setbacks that have already been suffered. you know, poverty rates have spiked for the first time in more than 20 years. kathleen: is this a threat, at this point in time, is this a threat that could spread from the poorer nations, spread from emerging markets, as may be rates to start rising, or stimulus starts tapering in the u.s. and other places, as the dollar continues to strengthen. is this something that becomes more about systemic problem for financial markets? >> look, you know, contagion, financial contagion, which is something among emerging markets we really have not seen since the 1990's. remember, we have the mexican tequila crisis. we had the asian crisis. we have the russian crisis,
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which was rolled into ltcm. that brings me importantly, so i do think the contagious element is something to be concerned about in this environment. i would also note, that the archegos accidents of this world are also, you know, we are living in a very expensive, global liquidity environment. there is a lot of risk-taking that low interest rates bring about. so, i concluded with the interaction between the russian, and ltcm crisis, which is not entirely related. but they were, they shared a lot of common ground. and i think that kind of risk
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take, on the part of financial firms, coupled with what is already, as i noted, for many reasons, a fragile, more fragile emerging-market, although there is huge differentiation across emerging markets and we cannot lump them all into one bag. i think it does set the stage for the possibility of some nasty episodes, especially if there are surprise interest rate spikes in the u.s. for any reason. kathleen: we honor when money starts exiting and running fast it can run fast and hard. thank you so much, world bank tv economist carmen reinhart -- world bank chief economist, carmen reinhart. >> thank you, kathleen. haidi: we have another big
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interview coming up and we will be joined exclusively by the finance minister of the philippines. we will discuss the surgeon virus cases, the impact on the economy that suffered its worst ever recession last year. next, the fallout from the collapse of archegos capital continues to reverberate at credit suisse. the latest on that, just ahead. this is bloomberg. ♪
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haidi: we have an alert crossing the bloomberg, kkr raising $15 billion dollars, for asian equity pool, the fourth asia focused fund passing that $12.5 billion targeted at the launch in november, 2019, month before the start of the pandemic. they received backers 288, contributions from them, 30% new to the kkr private equity fund asia including private bank family offices as well as high net worth investors. also taking a look at other numbers, this adding momentum for business in asia after they invested $1.8 billion in the region last year. it is about 12% of their newfound. that pe business comprising 70
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investments across six major asia-pacific markets. the asia-pacific head of kkr saying this is very significant source about turner never capital allocation, and that asian-based investors are keen to invest now in their own backyard. with that massive new fund from kkr. get you to first word news with vonnie quinn. vonnie: u.s. treasury secretary janet yellen out on the case for uniform corporate tax rate across world with major economies. in her speech on economic policy that yellen says the u.s. is working with g20 nations to find an appropriate minimum rate and signaled out china saying the u.s. needs a strong presence in global markets to level the playing field. u.k. prime minister boris johnson rebuilt a bold plan to reopen the economy, which includes twice a week covid testing provided for free. under the easing outdoor attractions and restaurants can reopen for the first time in four months. foreign travel could also be
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permitted from may 17 under new guidelines. however, johnson warned britain's not to let their guard down. thailand order the closure of 200 nighttime entertainment venues including bars in the capital after a new spike in covid infections. that two-week closure came ahead of the thailand near holiday next week and the shuttle may be extended if the outbreak does not ease by april 19 according to officials. investment chairman says it is only time before another firm implodes in a similar manage -- similar manner to archegos, as banks liquidated $20 shush $20 billion positions related to the firm. an exclusive interview, that margin call may not be over. >> highly likely we are quite have another situation like that. you know, these things when they come, like we are experiencing,
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where out of the blue, you hear some major losses somewhere. they tend to continue to cascade, until the market corrects. and flushes the risk out of the system. vonnie: global news 24 hours a day on air and at bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: we do have an alert on the bloomberg now that credit suisse will be detailing day archegos related losses tuesday according to reuters. it was very hard hit by the collapse of archegos, sources saying a could account for losses at credit suisse that run into the billions of dollars. credit suisse also planning a review of prime brokerage business and writer saying they could detail losses tuesday. bloomberg has learned credit suisse is making management changes as well, including the
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departure of investment bank chief chin. also the bank is offering a new round of block trades. su keenan joins us now and we are seeing reaction already after hours. su: yes, those block trades links to archegos, an all dropping after hours on the news. bloomberg learned this late of offering from credit suisse which comes a full week after rival stumped shares related to archegos, involves $34 million in viacom, cbs, 40 million in that shop, $11 million in far-fetched and $2 billion at current prices, sources say. of course, credit suisse had acknowledged significant losses, but has yet to detail exactly how much they had lost. this news on tuesday they will provide an update, is perhaps welcome news to investors. again, $2 billion in yet another round of shares being offered by credit suisse, still a fraction of the size of trades by banks
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last week, said to of total upwards of $20 billion and possibly $30 billion in chairs dumped, all of which impacted the related stocks. ha the latest in the shakeup when it comes to management at credit suisse? >> we learned the investment firm will probably announce the departure of chin to state which coincides with the update on losses. we do know that credit suisse the hardest hit of banks tied to the archegos capital collapse is also considering according to give a close to the matter, replacing the chief risk officer. the ceo, he is apparently safe and will remain in place. archegos-related losses have been really in the spotlight, particularly as they follow significant losses following problems with greensill, where
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credit suisse had to freeze related funds. these have left many asking r creditease has a systemic problem with risk. shery: su keenan with the latest on archegos at credit suisse. time for morning calls ahead the asia trading day. we saw weakness for the u.s. dollar in the new york session and goldman tweaking their tactical outlook on the greenback. what are they saying? sophie: the currency team at goldman sachs see short-term support for the dollar on former u.s. growth and rising yield. they close dirt short dollar recommendation against g10 commodity currencies after a copy few months. -- a choppy few months. still structurally burying on the -- bearish on the dollar with a widening account deficit in the u.s.. goldman looking to the euro as an opportunity to refresh dollars given europe is showing signs of getting the covid
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situation under control, so goldman or casting the currency will climb to want to 121 and could test 128 in one year. haidi: the dollar could be using -- losing steam when it comes to this rally, yelled falling, treasury showing signs of fatigue. sophie: early in the asia session we see treasury futures tech higher. barclays saying to aggressive given work jobs and inflation are given the fed plan for lift off. the committee going long five year treasuries. shery: the broader markets coming up in the next hour, jaguar growth partner ceo saying emerging markets narrative is vibrant at the moment, more on his em outlook. also we will talk to you why oceana about what to ask black at -- what to expect at the
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policy meeting later today. this is bloomberg. ♪
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haidi: a very good morning. you're coming down to asia's major market open. shery: welcome to daybreak: asia. asian stocks look to climb after stocks rallied to a record and sell of economic data indicated it is getting momentum. scott minerd says it's only a matter of time before another firm


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