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tv   Bloomberg Daybreak Asia  Bloomberg  August 3, 2021 7:00pm-9:00pm EDT

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♪ haidi: hello and welcome to daybreak: asia. >> we are counting down to asia's major market of. shery: and for the evening from new york. asian stocks face a caution open despite wall street records as the pandemic and china's crackdown dampened sentiment. tencent considers gaming as
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spiritual opium rebuke. haidi: we have numbers crossing bloomberg earlier. second quarter net income results the expectations coming in at 1.16 billion versus 1.1 4 billion. net interest income came in just shy of 1.5 billion, noninterest income at 1.11 billion sing dollars. we are seeing recovery as economies start to pick up and restrictions on lending start to be pulled back. we are also seeing other assets coming in at $393 million. that is 25 singapore cents per
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share interim dividend also being announced much better than expected after mas lifted the cap. >> a similar story announcing shares after the monetary authority lifted that cap. we are seeing first-half net income coming in, again of 29% year on year. first-half net income of over 2 billion singaporean dollars. uob sank liquidity funding positions remain robust and lending ratio remains strong. second quarter net income coming in at 595 million sing dollars and we are watching impairment charges of 182 million sing dollars as well.
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this as we continue to watch singaporean banks, which have been among the best performers this year. not to mention we can -- we continue to see recovery with credit costs. haidi: sticking with earnings, continuing to look through alibaba's revenue, missing estimates for the first time in years on the first earnings report. our chief north asia correspondent joins us now. what did you make of it? clearly the clouds of the regulatory overhang loom large. >> it was better than the first quarter when they took that fine from regular -- regulators, a record amount. and the company pledged to spend more in areas the government would like to see them spend but
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it looks as though these regulatory pressures are still lingering and could go on for some time. we serve revenue missing estimates and declined a bit across all the major divisions from e-commerce to cloud. we serve revenue for the group as a whole this estimates for the first time in a couple of years. i don't need to tell you, i've been away for a few weeks but you have been warning the last few weeks on the tumultuous a few weeks for the tech sector, including alibaba, including tencent wiping more than $1 trillion of market value off a lot of these companies. it looks as though the regulatory pressure will continue and it really underlines the concern that this raft of regulations that are in place and could still come are constraining that expansion and investors may be coming to the realization that alibaba may not
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be able to spend its way out of this regulatory pressure. they were the first to face that regulatory scrutiny following those infamous words of jack ma and the scrapping of the anti-po but troubles -- ant ipo but troubles still linger. compliance is a hallmark of these big companies with the government so far of the last eight months or so. he says we do see cross-platform openness and conductivity as a positive trend that could unlock greater dividends in the internet era. what he is referring to is what regulars are going after, anticompetitive behaviors where they have these use of contracts with merchants and a set the other competitors from their platforms. so the alibaba ceo is saying if we are going to start sharing, this could be good long-term but
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you kind of expect him to say that if the government is making this a big priority. i will add ant financial results lag hind alibaba so you are just getting a taste of how that scrapping of the idea at the crackdown -- of the ipo and the crackdown are impacting and. haidi: let's talk about tencent. this chart on bloomberg is showing valuations have fallen to an eight year low. they are soft falling as much as 11% in hong kong. we could potentially see more gaming scrutiny. >> this is the key component of tencent's big mix, multicomponent offerings across platforms and they have a lot of kids. i have a 13-year-old daughter, i
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been with her the last four weeks in the united states and including now in quarantine, i need regulations on how to get her off the gaming. i'm not necessarily taking page from the book of the chinese government because they are trying to restrict this. they posted a scathing criticism of what they call spiritual opium. they did delete that reference to the narcotic when they reposted the article but tencent responded, pledging further limits on the amount of time minors spend doing the week. one hour per day. they cannot do online purchases in the game and it is leading to concerns that tencent may ban outright children below the age of 12 from online gaming and this is a huge part of their success story. this was a $700 hong kong stock, it is now for hundred -- 400.
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scrutiny is ramping up, first on alibaba now tencent and others as we have seen. haidi: stephen engle's joining us from hong kong. you can get more analysis on crackdown and tech at the bloomberg technology channel on youtube. we have breaking news. we are hearing from sk innovation. the south korean company will be splitting off its battery and emp businesses. this as they announced their second-quarter earnings. there consolidated net coming in much higher than expectations. operating profit also higher than expected at 506.49 but the key news out of sk innovation is they are splitting off their
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battery and emp businesses. we will be waiting for the market open to take a look at the stock. we have seen a gain of 90% in the past year. riverfront investment group says the issues hitting chinese shares will not be the catalyst for a broader selloff in the markets. senior market strategist rebecca felton is with us. i have to wonder if impact on broader global markets is sort of inevitable given how big china has become in the broader emerging-market context. we are talking about china's standing in the index, as this graphics chart shows, rising for 10 straight years before slipping this year. what sort of impact are we expecting? >> you make a very good point. thank you for having me.
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we are keeping a close eye on it and i will start with the caveat that we have reduced our emerging market exposure in may. but data out of china has been showing their economy is slowing which is bad news for emerging-market economies and for that index so we do need to keep an eye on it digitally if the crackdown does further slow in these countries and industries you have been talking about. shery: but it is not just about slowing growth in china and in many other parts of the world. we continue to see this uneven recovery. where do you invest when the trades are working as well as expected. >> i think you make a good point because the market was focused on the reemergence of the virus
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versus the other day. we were focused on inflation and versus that it was the earnings beat so we are trying to take a barbell approach. we have still kept our neutral to slight overweight depending on the time horizon and we have also added to our industrials exposure. we still have a neutral to overweight position in consumer discretionary playing and ongoing recovery. haidi: do you think the resurgence of delta changes things? the consensus seems to be there will not be lockdowns matter how bad this gets but what is the sort of weight on consumer sentiment and the confidence there is in this recovery?
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>> we have the -- we have seen the consumer continuing to move in the right direction. in gdp consumer consumption was the single largest contributor. consumer sentiment is hanging pretty well in addition and as they hang into the fall and schools reopen, that will be key. we don't believe there will be wholesale shutdowns but we are already hearing new rules around masks and that sort of thing so it's important that we are concerned about this juncture and not wholesale shutdowns across the u.s.. haidi: rebecca felton, great to have you with us. let's look at how they are setting up for this training session. >> we are seeing futures mixed in asia.
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we have reporting from japan along with toyota. shares of this company fell in seoul along with asian game stocks. check out the kiwi dollar firming up after we saw the jobs report from new zealand surprising to the upside with the unemployment rate falling for the second quarter, likely affirming rate hike debts. and check out the offshore u.n. holding. this is despite the slump we saw despite revelatory concerns. -- regulatory concerns. over at bloomberg intelligence, you have tom orlik saying that china's delta variant is weighing on the economic outlook for the country. and over at the markets team,
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they are illustrating some speculation that could show how asian central banks made a late rate hikes. bets are picking up that central banks may ease in the coming months on that delta risk. we are seeing chinese swap rates fall as we are seeing indicators to the economy weaken. manufacturing activity has slowed. haidi: an exclusive interview with someone who has helped organize 12 olympic games. a guest from the ioc joins us to discuss the legacy of tokyo 2020, what comes next and lessons learned from staging a spectacle in the middle of the pandemic. shery: but experts say the spread of the delta variant has pushed the threshold for herd immunity to a much higher bar. we discussed the latest risks next.
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♪ >> this is daybreak: asia. president joe biden along with other top democrats are calling on governor andrew, to resign after a statement found he sexually harassed multiple women and violated federal and state laws. the states attorney general says he and his staff retaliated against at least one employee for coming forward. he denies the accusations. >> are you calling on him to resign? >> yes. >> and if he does not resign, the believe he should be impeached and removed from office? >> let's take one thing at a time. i believe he should resign. >> extreme heat increase is straining the national power supply and fueling wildfires. temperatures are also forcing
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the closure of the acropolis and other ancient sites. it is their worst heatwave in decades. hot weather has also sparked wildfires and impacted holiday in turkey and italy. the sec is warning that companies awaiting merger approvals may be in for a long wait. the antitrust agency says it is processing the highest number of applications in decades. it is sending letters to friends doing deals that cannot be fully invested get then 30 days saying their investigations will remain open. global news, 24 hours a day on air, on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: it's going to be harder than previously thought to reach herd immunity against covid-19. the infectious diseases society of america says the spread of infectious variants pushed the
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threshold well over 80%, potentially approaching 90%. joining us to discuss is a bloomberg opinion columnist. is this because of how contagious the variant is? >> that's exactly it. when you have a more transmissible strain of the virus, you need more people to have vaccine immunity or immunity from prior infections to get herd immunity which is basically the virus at any given point in the country just running out of people to infect because there is not anybody susceptible. that number needs to be very high in order to get to that herd immunity level so that will be very difficult to achieve given the united states as a whole is not very close to that yet.
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haidi: it seems like the risk benefit of the vaccine for younger people, the perception is quite skewed. is that why we are seeing more hesitancy? >> i think that's the case. in some extent, is a different risk profile when it comes to the virus. is enormous in terms of presenting -- preventing even that small risk of a bad outcome and that ability to protect others and the thing that always needs convincing to some extent given the amount of misinformation out there, the risks are very small. so that needs to be the continued move and also you need
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to change the risk benefit perception by making the benefits of being vaccinated larger in the ability to example -- ability to travel or go to restaurants and that sort of thing may shift the mindset among younger people. shery: especially when you have places like new york city with new proof of vaccination requirements. do we see these in other places as well? >> i certainly hope so. we are at a point where most people in the united states have months and months to get a vaccine where there is clearly something holding them back so you need to give every reason to possibly -- you possibly can to get over that hesitancy and these sorts of restrictions, when we are talking about young people who may not have those baked in beliefs, they may not feel the virus is much of a threat. if they have annexed or reason like being able to go out with their friends, that may really
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have a substantial impact going forward. haidi: coming up next, the oecb raising dividends. we are up next reporting -- up next, reporting on singaporean banks.this is bloomberg. ♪
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♪ haidi: let's get back to those singapore bank earnings that we had rusting in the last hour. both banks have raised dividends. let's get to our south asia correspondent. the dividend was what we expected in terms of a bomb to shareholders. >> that is right. all a reflection of how well the banks are recovered after that
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come in numbers -- bump in numbers. it is a reflection of how the economy is recovering after millions were spent to raise the economy out of that deep recession. ocbc is the biggest lender in the city. net income is up. for uob, income is coming in up year on year. the dividend payout ratio is up 50%, a reflection of how strong the liquidity position is. that is also adding to reasoning why have lifted the dividend payout imposed year ago to a reflection of how well the banks are recovering right now. haidi: no wonder we have seen
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those gains in stocks among the best performers this year but i'm wondering if a lot of those positive views have already been raised in -- christ in. >> -- priced in. >> those tracking shares expect it to go up 15%. overall, they are up 20%. doubling the share price of the competitors performance year-to-date. a reflection of how well banks are expected to recover. bear in mind there are risks. we heard there is uneven recovery when it comes to the economy. asia in particular is at risk. even in north asia, china was leading the recovery.
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they are now showing signs of the delta in focus. haidi: here is a quick check of the latest business flash headlines. softbank is said to have built a $5 million state in a pharmaceutical giant and is betting on a strategy of using data to develop drugs. a source tells us softbank sees roche's development arm as undervalued. the japanese conglomerate is one of their largest investors as they continue investments in biotech and health care. robinhood surged 24% on tuesday. this is the first time it has held above the price it went public with stocks continuing to climb. more than 88 billion shares changed hands since listing on friday. it was also the top trade on
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fidelity's plawith more than 9000 orders. up next, the ioc is executive director talk about the impact of the games -- and there you have it - wireless on the fastest, most reliable network. wow! big deal! we get unlimited for just $30 bucks. i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax people, my wireless is crushing it. okay, that's because you all have xfinity mobile. it's wireless so good, it keeps one upping itself.
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>> this is daybreak: asia. bloomberg has learned the u.k. may lock takeover of a chipmaker by nvidia citing potential risks to national security. last september, nvidia announced a deal to acquire arm, owned by softbank. in april, the cma was asked to investigate whether the deal could be deemed anticompetitive. the envoy to afghanistan says the local government to week to
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negotiate. speaking at the afghan security forum, the official called advances by the taliban concerning as the u.s. paris to complete its troop drawdown this month. they have spent aliens of dollars on america's longest war. the spread of covid in texas has pushed the threshold for herd immunity above 80%. that is the view of the infectious disease society of america. it represents a higher bar down the previous variant because of its high transition rate. the cdc says 50% of americans have been fully vaccinated. at the tokyo olympics, simone biles made an emotional return to competition. she won a bronze medal in the balance beam finals she withdrew in the team rounds. she now ties shannon miller's record as the most decorated u.s. gymnast.
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global news, 24 hours a day on air, on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. haidi: staying with the olympics, before tokyo 2020, there were doubts the elliptic committee could even pull off the world's biggest sporting event in the middle of a global pandemic. our guest says there were challenges without president. we are now joined the ioc's executive director. it has gone by in a flash. it's hard to believe we are in the final days of competition. knowing what we do, was this harder or easier in some respects than you expected? christophe: i would love to answer easier but this was not the case. it was tough. first, the act of postponing
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itself was what was comforted -- complicated and you are doing it in a pandemic. it was already quite an operation. this time around, it's so much more complex because 100% of those games have to be safe for the participants and citizens of japan. haidi: what has been in the day-to-day real impact of covid because i think we can call the containment of covid in the olympic village a relative success but it has been difficult. christophe: it has been difficult because it is a constrained environment. when you are in normal games, it
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is a big imposition. the normal thing is to party around the stadium, to have the city feel that atmosphere. that is not the case because everybody has a duty. everybody wants to be a good participant and a good participant is respecting a bubble where you go from the olympic village to a training venue to another destination within the bubble so it is certainly a constrained environment but everybody having sense of duty, it's all about safety and making sure the athletes can shine and inspire us and that's what we have a duty to ensure. haidi: given everything you have learned in tokyo, are organizers right now speaking to the china
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organizers? what are you expecting for beijing? christophe: it is happening and something they have to learn from. we are in the final stretch of preparations. so down to the minute details of transportation plan and how you make sure the bubble remains safe. so yes, a lot of lessons to learn and part of the exchange with the organizing committee. they have by the way a collaboration. haidi: can you imagine another
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spectator free olympics? christophe: i would absolutely love to have spectators in the venue. we have heard a number of athletes that what matters is that we can compete and we have used this time to participate and shine even without spectators but if you had the choice you would prefer to have spectators. so let's see how the pandemic evolves especially in china and around the globe and then let's look at the consequences of participation for our spectators. haidi: how much has the lack of sponsors been impacting these games and will future games go forward without sponsors? christophe: there was never a lack of sponsors.
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on the contrary, this was the most successful sponsorship campaign ever and this was the case with beijing. where it was the most successful promotional campaign ever for the olympics. here, the organizing committee has been amazingly successful they have raised 5.9 billion in revenue which is a smashing success. there is no doubt it was a commercial success and is driving a successful campaign. we see the impact of the games. i do know if you have witnessed but we are in day 12 and every front page has something on the game. they have a very deep impact. haidi: i should correct myself.
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i meant a lack of spectators rather than a lack of. clearly, there are myriad sponsors still interested. i want to talk about political protest because the ioc relaxed their rules. we will have more on political opinions. how does that play out in a place where free speech and demonstration is not a guaranteed right, i.e. in china? christophe: it is a guaranteed right there and we have a charter and contract establishes this. everything that is in the charter will be respected. that i can guarantee. what we have seen here in tokyo is a relaxation of the rules that was a successful one. they are very clear on what they want to preserve.
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it creates more opportunities. and we have seen a number of activations and it is creating those opportunities that they always have in the press conference after a competition. here, it is wider and including on the field of play and it works. they have been immensely respectful of what they have decided for themselves. shery: and yet there is still a lot of pressure for even a diplomatic or full boycott of the beijing olympics. how much do you expect politics to factor in to these games?
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christophe: you have been in the townsend's the 23rd of july you're in front stadium and here you have what the games are all about, to unite the world and we will continue to do it. this is the message will continue today and this is the message. what we are about is unifying the world at one place at a given point in time and this is what we have demonstrated. we have communities from every country who live in harmony and it is an ideal is a formidable example of how the world can live together. we are about building bridges.
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haidi: before we let you go, tokyo 2020 amaq one of the enduring legacies will be how mental health has been elevated to his much importance as physical health and training. how difficult has it been and how does it create a legacy going forward for the sorts of measures and protections and support mechanisms that are in place and for somebody reasons, this has been such a trying game for a lot of athletes. >> there were a number of measures in place. what to me is immensely important is that mental health has been given probably the most prominent platform ever. when you have simone biles speaking on the world stage were naomi osaka -- or naomi osaka
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speaking for those who suffer from mental health, it is incredible. discourage displayed on the world stage, and many other issues like equality to the use of renewable energy at the village to sports participation in how to increase the health of citizens and hooting here. all these things will be the result of what we do together which is create this platform for sports but also for a greater conversation. haidi: before we let you go,
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today, a belarusian sprinter headed to the polish capital after asking for attention. what is the -- for protection. what is the stance given the olympics are the venue she has saw asylum given the pressures of her own country -- from her -- sought asylum from the pressures of her entry. christophe: we made it clear we could offer support and the situation is not necessarily in our hand but we are very happy she is in safe hands. an official inquiry is progressing as we speak and will be resolved in the next few days but what is reassuring she is safe which is reassuring.
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haidi: thank you, the ioc olympic games director joining us from tokyo. you can see more of olympic coverage and keep track of the results on bloomberg's metal tracker on the terminal and at we have an alert. we're hearing from the new york times that the fda is aiming for final approval of the pfizer shot by early september. the fda was removing the application for full approval of the shot given the u.s. is experiencing a new wave. now we are hearing this could come by early next month given that we now continue to see this new surge of covid-19 infections. president biden said we fully expect in new vaccine in early fall.
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this is bloomberg. ♪
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haidi: bloomberg has learned that softbank has built a $5 million state in roche. we have also learned that and videos deal to buy arm may be at risk. -- nvidia's deal to buy arm may
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happy -- may be at risk. >> we are learning that roche's largest investor is softbank. we also know that their sales really took off during the pandemic in large part because of the testing business. the diagnostic division reacted swiftly to the pandemic. even though they have faced challenges, people close to the matter say softbank sees roche's genentech division as undervalued. they are also developing a new pill for covid-19 and alzheimer's treatment that make it very attractive. the stock is up almost 9% when compared to the rest of the industry.
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but softbank has been increasingly focused on biotech and health care analysts point out and those close to the matter say it has slowly been building this very large state in the pharma giant. shery: we are also hearing sources tell bloomberg that the u.k. could block nvidia's deal to acquire arm. is that entirely on national security concerns? >> that is big but we are also hearing anticompetitive concerns. stocks in the chip space got rocked. nvidia was down before rebounding at the close. notice advance micro was closing for its fifth straight record high. amv is a big competitor with nvidia.
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analysts say if there was any threat to this deal, it could threaten nvidia's domination. they are the biggest u.s. chip company by market cap and announced a deal to acquire arm back in september as part of the push to reach into the market for semi conductors. arm owns the most widely used sets and designs in the industry. it is currently owned by softbank. we know that the u.k. did seek in april to investigate whether the deal could be anticompetitive or could pose national security concerns. it is not exactly clear how a japanese owned ship division would pose -- chip division would pose those concerns but nonetheless nvidia has said they
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are working with the regular tory process and there's still the possibility of a deal -- regulatory process and there is still a possibility of a deal. haidi: the kiwi dollar is moving on the back of the labor market data. >> a surprise improvement in the jobless rate for the second quarter, which is tightening bets. new zealand's cash rate that they are seeing new zealand's cash rate being lifted the end of this year. the bank of thailand is expected to stand pat for a 10th straight meeting. the bat fell. there are expectations it could gradually improve if massive tourism turns, forecasting the timeline around that is extremely difficult and pulling up the terminal, our colleagues
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are taking note of pressure on the renminbi which could crowd the outlook for asian currencies. as you can see, we have china's two year yield falling and that has been picking up which has narrowed the premium over treasuries to 75 basis points as bets pickup the pboc may ease in the months ahead. shery: let's turn to bitcoin trading, under $40,000 again after its best week in months. it brought the price below the 100 day moving average which suggests weakness. they also face increased regulatory scrutiny with more oversight to protect investors. >> right now, we just don't have enough investment protection and
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at this time it's more like the wild west than some sort of protection against fraud and manipulation. this class is rife fraud and abuses in certain applications. haidi: joanna what is the crypto world expecting from the sec chair? >> he is an expert on digital assets. he has done a lot of work on it and taught courses in it so many people thought he might come in and be really friendly to the crypto world but it is looking like he is saying we need more regulation and there are a few people -- and there are few who wouldn't admit it is like the wild west and some amount of regulation would make sense for some people.
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shery: what do the recent actions of bitcoin tell us? >> it did make a move higher. it has been in this range for many weeks now and it is likely to stay there a little bit longer it has broken to the downside before and now it is broken to the upside but it really is stuck in that range for a while after mid april. so it will take a decisive move in either direction to get it out of this rain, probably. haidi: you can also tune in to bloomberg radio to get more on these top stories. you can get in-depth analysis from the daybreak team. they are broadcasting live from our studio you can listen in plus more on bloomberg more ahead, this is bloomberg.
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♪ haidi: a quick check of the latest business flash headlines. huarong asset management is planning to sell its stake in ad groups as part of a push to exit non-core businesses. walmart will dispose of its stake in a finance group was --
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group they aim to offload newly all of its units. in an effort to shore up finances. thailand hedge funds slid less than 1% in july even as bets on chinese companies soured. it top holding was this website, which itself tumbled 11%. china has imposed sweeping changes in recent weeks on some of the nation most flourishing sectors as it seeks to rein in inequality. 40% of canada past its level to in may and june, the lowest rate since 2010. this was the first time the test was given since computers. the last time it was administered on paper was in december and 55 and past canada studied 300 hours for each level of the exam. last week, a record low past
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level 1. claims down as the next industry in the spotlight could be gaming. we discussed with the agency director. plus, an investment strategist. ♪
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>> hello and welcome to "daybreak asia". i am shery ahn in new york. sophie: i'm sophie kamaruddin in hong kong. >> i'm haidi stroud-watts in sydney. our top stories this hour, a cautious open despite wall street records as the pandemic and china's tech crackdowns dampen sentiment. tencent considers restriction on kids in gaming after the spiritual opium rebuke sent the
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stock plunging. a new study shows the delta variant pushing the threshold for herd immunity to well over 80%. let's take a look at trading in asia. sophie: kicking off with a open and tokyo, after we saw the nikkei 225 closed lower on tuesday, we are seeing downside pressure for the benchmark while the yen is testing that 109 level. pdp traders will be watching for bond buying. we are watching from results for softbank. earnings are due from cookout. innovation reporting this morning. shares after the company signed a deal to develop an mrna vaccine platform. the kospi extending gains for a third session. the korean won is slightly under pressure while we are seeing korean won futures tick, traders are pricing in three rate hikes over the next 12 months. in new zealand, flipping the board, tightening beds have
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formed up with the kiwi dollar rising on the jobs report. they now see the cash trade ad 1% by year end. the rpa stuck to bond tapering. ozzie i-74 on that while shares are seeing a little bit of a bounce back after slipping from a record high on tuesday. checking in on brent, we are seeing downside pressure after a two day job as that china delta risk is adding some to some clouds when it comes the demand -- the demand recovery outlook for oil. and over at bloomberg's economic, recruit sink -- reducing downside risks for the outlet. get to our next guest for recovery traits adding to chinese stocks in u.s. large caps. let's bring in asia pacific investment strategist at city private bank. we have had several opinions coming through after some of these regulatory woes blocks markets in china.
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adrs fell overnight. we are seeing strategists say there are selective opportunities. you have added to your allocations. so where are you seeing those buying opportunities? >> we need to differentiate the near term rate. we will still see some earnings of certainty, how much impact on earnings will be our regulatory actions. we saw all these earnings through 2q, it's not bad. up 34%. the thing is, 3q, 4q, you will see more earnings. so investors, analysts will meet those numbers in the guidance to figure that out. i think we probably will still be facing a few months of elevated volatility. but i think longer run, we need to remember that china says these things once in a while, and it's always for a longer-term purpose.
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>> we have seen it with minor protections and online gaining space. so as we do see more potential for regulatory changes from beijing, how are you aligning which sectors might be the beneficiaries from these types of stability in social security as more of a priority for policymakers? >> you can see it as the chinese characteristics. they are very specific and required to comply a set of standard for social responsibility and governance, and the environment as well. so those who are consistent with those goals are going to be ok. the electric vehicle supply chain, batteries, core technology like chips and that line. perhaps software and hardware. on the consumer side, if online tutoring is out of fashion, then you want to be in sports. so i think there are still quite
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a lot of things that they had, even the hardest hit names. i think eventually they will be able to adapt to this new environment. shery: you can see on that gtv chart, the search we have seen on new energy. chip stocks being the big winner when it comes to the shifts we are seeing in china. how important are earnings for the rebound? ken: they will become important, but like we saw last night, i mentioned that the earnings are ok, and the most important announcement is the buyback. i think we will probably see more of that for companies, particularly large problem company. the ones that will show their commitments to future development and growth, and so you want to see more plans as to how they adjust the business model, and also these buybacks would help in the coming months.
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haidi: it's interesting, listening to what you said in response to the opening, he said these sorts of crackdowns happen here and there every now and then when it comes to china, there's always a greater purpose. is that a problem when the policy purpose changes depending on what the government decides is a long-term or medium-term strategic social objective? and, is it a good enough justification just for this year destruction of shareholder value that we are seeing? ken: since the president took over, the annual return for the msci china index is about 9%, not quite as good as s&p, but not bad. in 2015 we had this change in the fx regime and people did not have enough fx reserve and never buy china again. what happened in the years after his one trillion u.s. dollars worth of inflows for the onshore
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bond and equity market. 20 they went after the aggressive companies that were aggressive in foreign acquisitions like the airlines. and a lot of people feared, not just for assets, but for their lives. and then what happens in 2019 and 2020 is that china showed it's a global technology leader. so i think these changes in china's regulatory framework does lay down the building blocks for a more sustainable future. it's hard to make that argument at this point because we haven't seen all of the regulatory risks play out yet, but i think the upcoming ones, like gaming, it's not going to be nearly as impactful as this nonprofit thing. i think that is more of the outlier. shery: how do you factor and now the spread of the delta variant, especially in economies that we saw have reined in and have seen the worst of it?
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where do you see the opportunities and the challenges across asia? ken: sure. i think this is unfortunate, so we probably need to push back our expected scheduled reopening, but with regards to china, they are probably not going to do a reopening until early next year anyway. so i think what this does is it delays the recovery in the service sector, and in retail sales and consumption. what that means is that the authorities on the fiscal and monetary side need to consider additional easing. i think that's going to be a marginally positive development for the markets to restore some sentiments. shery: city private bank asia pacific investment strategist, thank you for your time. does take a quick check of the south korean stock sk innovation because it's currently dropping. this after they announced that
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they would be splitting off their battery business. and also coming at a time when actually they reported earnings that beat estimates with their consolidated net coming in at 399 billion one. the estimate was only for 280, so that was a big feet, but we also saw them announcing that battery and emp business split off, and we are seeing losses of more than 5%. let's turn to vonnie quinn with the first word headlines. >> the spread of the more infectious delta covid-19 variant has push the threshold for herd immunity to percent. a represents a much higher bar than the previous estimates at 60% to 70% because of the high transmission rates. the cdc says 50% of americans have been fully vaccinated. this cdc also now issuing a new moratorium on the eviction of renters and parts of the united states with substantial covid-19
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risks. it will remain in effect until october 3. the biden administration faced intense criticism from within its own party for not acting sooner to prevent them from losing their homes. the previous plan expired this past weekend. it could help keep millions in their homes amid a virus resurgence. president biden, along with other top democrats calling on andrew cuomo to resign after a new york state report found he sexually harassed multiple women and violated federal and state laws. the state attorney general said, and his staff are tolerated -- retaliated against one former employee are coming forward. cuomo denies the accusation. >> are you now calling on him to resign? >> yes. >> if he does not resign you believe you should be impeached and removed from office? president biden: let's take one thing at a time. >> bloomberg has learned the
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u.k. may block a takeover of nvidia, citing potential risk to national security. it's a u.s. chip company -- biggest u.s. chip company. it announced a $40 billion deal owned by the japanese conglomerate softbank. in april the cma was asked to investigate whether the deal could be deemed anticompetitive. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts and more than 120 countries. this is. haidi: we will take -- this is bloomberg. haidi: the spotlight turns to the gaming industry. we will discuss that with the eurasia group. coming up next for the first time in more than two years, alibaba's revenue missed estimates of the crackdown. we have the latest. this is bloomberg. ♪
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>> there has been some concern
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about whether it's at an end of china with all of the crackdowns from a regulatory perspective. we don't think so. >> there needs to be balance profit making and work responsibility and national interest. i think we are in for this structural change. >> potentially long-term positive for the world economy or from the market side with more investors not lagging. >> i don't think it's safe to assume that westerners can trust putting money in chinese companies. >> i don't necessarily believe they are not investable. haidi: weighing in on the fresh regulatory concerns. alibaba's revenue missing estimates for the first time in more than two years of its latest earnings. stephen engle joins us now. it seems like a long time ago, but going back to the fact that jack ma was at the start of this regulatory crackdown on tech. is it showing up in the numbers? stephen: yes, it is.
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and i went away, as viewers would know, about four weeks in the states, and this is a story that has not gone away, it has intensified. we are not just talking about alibaba, big tech crackdown across the board in the last few weeks while i was gone. more than $1 trillion worth of market value. tencent is another victim. we will get to that story. while i was in the states it was interesting. over the past 18 years since i have been a bloomberg, when i go back to the states, friends, colleagues and family members don't know what's going on in china. very different this time around. everyone asking me about the crackdown. they are all invested. there's a lot of interest. there's a global story. alibaba listed in new york and hong kong definitely at the forefront there in on people's minds. what has happened to jack ma, etc. the previous quarter they took the $2.8 billion hit and that son profit.
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this time they have returned to a profit of a quarter, but however a revenue in all its key divisions from e-commerce to cloud, that revenue did not hit -- hit the estimates and that's why there's concern that perhaps the growing and ongoing crackdown is making it difficult for alibaba to move on and to spend its way out of this regulatory pressure. because, look, they are doing a share buyback, yes. our previous guest from citigroup talked about how this is probably the most important thing. they will increase the share buyback program from 50% to 15 billion u.s. dollars. just buying your way out of this problem, as we have seen across the different divisions at alibaba, is not necessarily going to get their way out of it. that they were the first ones. it was the first one to be targeted. they are still being targeted, especially with aunt folded into a company and regulated by the
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bank. their quarterly results lagged by a quarter from alibaba. we are starting to see the bite of the regulatory impact on them. their profits fell 47% from the previous month. shery: tencent has been targeted for a while because of their games -- gains. it seems beijing could be doubling down. tell us what's happening on that front. stephen: it's an interesting story. i'm coming into this story a little bit late, having been away. my initial gut reaction in my report this morning is, this is a key component of their revenue, gaming. but we did dig deeper in the analyst there, solid work. i was reading the report and i am seeing that this 16 year old and under, the revenue from that is only 6% of total sales. so they are saying that the long-term impact is not going to
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be necessarily as widespread and deep as i initially expected. the what's happening as you have state media, and we know the regulators over the last three years have been trying to crack down on the social impact, the social opium of the on -- as the online critique called a yesterday. the kind of crackdown on that and limit the number of hours that young people under the age of 12 have been spending online in games. and tencent responded to that article saying they are going to start to limit -- continue to limit those under age 12, the number of hours down to one hour during the weekdays. we are kind of extrapolating and wondering whether it's going to eventually lead to an outright ban. but again, the revenue impact according to bloomberg intelligence should be fairly limited at 6% of sales coming from those 16 years and younger. shery: our chief north asian
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correspondent stephen engle with the latest on alibaba and tencent. you can get more context and analysis on china's crackdown on the tech giants on red lines china and big tech at the bloomberg technology channel on youtube. up next, china's debt headaches aren't going away anytime soon. moody's downgrades the ever brand yet again as more issues bloom. this is bloomberg. ♪
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shery: fresh developments underway for two of china's biggest ahead dates. landing on selling their stakes in the consumer finance unit, while evergrande issues are deepening after another ratings cut for moody's. let's bring in our chinese edit creditor. rebecca, this is really a slow, ongoing implosion for these two
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companies. every single day it seems we have a new headline. which one do you want to start with? >> i think here we are seeing the first real signals about potential restructuring or reorganization will look like and it said to be transferring its stake in and. also, potentially planning this debt to equity stock for units. so we are starting to see this move of them returning to their core business and a potential alternative as to how it stays to rustle up funds and shore up investments. shery: let's turn to evergrande, another cut? rebecca: yes, another ratings cut for evergrande. i think this one is slightly within expectations. ever can is clearly dealing with a lot of trouble with its debt at the moment. the other thing we are seeing
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with evergrande is more of these reports emerging about supplies or creditors worried that they won't be reimbursed for what they are owed, and trying to put forth potential asset freezes for evergrande. and that is something we have seen reemerge more over the last few weeks. shery: i guess a key question has always been whether this can lead to contagion. and we continue to really keep in a whether beijing will step in at some point. what are we seeing? rebecca: absolutely, i think that is the key question. and when it comes to evergrande, we had another media report out saying that chief asian is considering issues that are systemic, but more a liquidity situation that may indicate that perhaps beijing is not considering yet to step in. that absolutely is the queen -- the key question. we have seen some contagion through the offer space,
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particularly yields going into double digits, and a lot of weaker property funds selling off. however, there is an opportunity for investors. yesterday we saw more buying. things were stronger. for some investors we will see the selloff is an opportunity to buy credit at a cheaper cost right now. shery: our china credit editor in hong kong. standard chartered ceo bill winters is the latest executive dissent -- signal that the sweeping chinese crackdown and geopolitical tensions between china and the u.s. will be well. he spoke exclusively with our own rishaad salamat it in hong kong. >> geopolitical tensions are always on our mind, the fact is, the chinese economy is going gangbusters. the chinese connection to the rest of the world is increasing, not decreasing. the way the supply chains are reconfiguring, within the markets, a place to all of our strengths. supply chains are reconfigured
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not just by western companies but by chinese companies, into southeast asia, and in some cases into africa, the opportunity for us to provide financing is very strong. that's a big reason for our record results for china and the first half of this year. rishaad: what are you doing about -- a place like hong kong we have a lot of sees passport holders who may well be sling. are you seeing any evidence in that? would you ever consider having a high street bank in the u.k.? bill: we are not seeing material migration. of course if people are leaving, people have always left from time to time, people are also coming back in. hong kong is the place to be if you want to participate in the chinese capital markets. and obviously, in our case, we complement our hong kong visits with our shanghai visits. they are almost the same operations these days, giving --
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given the importance. hong kong is a thriving commercial center and that's part of the reason i was here for quite a bit in the fall as well because this is the hub of the chinese capital markets and i don't think there's going to be any change anytime soon. shery: standard chartered ceo bill winters speaking exclusively with bloomberg. there is a quick check of the latest business flash headlines, tiger global management had lot -- hedge fund felt less than 10% even as it soured on the regulatory overhaul. tiger held almost $9 billion of chinese adr as of march 30 first, including, and alibaba, which all tumbled in july. those losses may have been offset by its holdings in tech. softbank is said to have quietly built a $5 billion stake in the $5 billion giant and is betting on using data to develop drugs. a source tells us softbank's
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databank brought discovery and development arm is under value. bloomberg learned apple and a firm is launching a by now, pay later for apple devices purchased in canada. sources tell us they plan to debut the initiative this month at apple's online and physical retail stores. the service will let iphone, mac and iphone buyers in canada pay for purchases over 12 420 four months instead of in full at the time of the transaction. coming up next, more insight on china's campaign against the internet sector, eurasia group's director joins us for that. this is bloomberg. ♪
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shery: we do have an alert on the bloomberg. we are getting the hong kong pmi numbers coming in for the month of july have 51.3, which is a very slight deceleration from the previous month 51 .4, still in expansionary territory. expansionary territory for six consecutive months, but we have seen those slightly weaker numbers when it comes to those chinese pmi's on slower domestic demands. when it comes to the singapore pmi, very strong coming in at 56.7. which is quite a jump from the
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previous month. that came in at 50.1. they have been in expansionary territory since the beginning of this year and we are again seeing pretty strong numbers for singapore. in fact, we continue to see strong numbers for parts of asia. the divergent is growing against some of those southeast asian economies, haidi. haidi: it really is this combination of chinese clamp down, caution over the potentially delta driven slowdown across the region is really leading to a bit of a mixed picture when it comes to trading at the moment. that's get over to sophie who is taking a closer look. sophie: we are seeing tepid moves across asia. the regional index has a little changed with the nikkei 225 under pressure. we are seeing gains in seoul, sydney and wellington as of this morning. you have the final reading on the bank of japan july's pmi as
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well as the reading coming in just a touch softer and contractionary territory. doing off the board we will check in some other movers. ozzie is weaker against the kiwi dollar. we see the rbn fed easing with the august meeting very much looking alive. in the commodities corner we do have a oil prices under pressure. brent falling for a third session with concerns over the delta wrist, denting the outlook for the demand at recovery, and looking makes it at pricing with td security saying that if they are feeling the weight of a synchronize slowing of u.s. china growth. decking on stock movers, shares are jumping after dependent -- japan's biggest mover is forecasting record profits for the year on rising steel prices and demand, recovery expectation. shares are rising on the report card. bloomberg intel of it -- intelligence say it may topple bloomberg intelligence.
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sk innovation on the move off by more than 5%. this despite returning for the second quarter with them beating estimates by trying to split off its battery and oil emp distances. that is weighing on shares. we are looking at kick how gains. we saw some quarter earnings were we see shares fluctuating until after it was caught off in tuesday's downturn in asian gaming stocks. shery: tencent will be in focus when trading in hong kong and china follows the route on tuesday after state media called gaming spiritual opium, triggering fears that beijing has chosen its next target. our next guest that any changes may be more moderate than state media's language. the geo technology director joins us now. great to have you with us, also, given the fact that tencent reacted pretty quickly, they are already against pledging to
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restrict playtime for minors. what can we expect coming from beijing? >> i think the language you referred earlier is coming from the state back to media. i would rate it like a public relation contained with dramatic language meaning to attract investor attention that has not represented the official policy statement. i would pay more attention to the parties department guiding opinion around the state time -- same time. it's more about shaving algorithms roll them online gaming and content making sure industries follow the party line. i think that suggests more moderate changes to the sector then the newer stuff. shery: why does beijing want to attract not only industry attention, but investor attention? we have seen considerable downward pressure on that sector already. >> that is right.
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i think at this point beijing goal was this regulatory clampdown or campaign, if you will. regulating this disorderly growth by the party by last year. at this point they still see this coming into the chinese market. however, it won't get into a traditional sector. in creating some problematic market behavior is a core problem that a regular and -- regulator need to focus on. haidi: when you look at alibaba, they were first on the chopping block with jack ma under incredibly's -- incredible scrutiny. in the middle of the big sprawling reorganization of big businesses. is the worst over, or will regulators continue to push with the hardline for alibaba?
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>> i think the goal overall is the orderly growth of the platform. the weather this is the unhealthy influence on minors, and eventually they won't be steepened to align their objectives with the strategic additions. i don't think right now you see the broadening and depending of the road -- regulatory campaign that maybe this pressure will give officials, but this pressure will make officials spreading that i don't see fundamentally it changing the regulator deal on alibaba. however, if the company takes a collaborative approach to the government, which seems to be the case so far, i think there is regulatory heat on the firm. haidi: we see what happens with
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the top down approach like we did with corruption crackdown and how widespread it ended up being with this crackdown. is it sort of you kill the chickens to scare the monkeys, or is it that they will go through every relevant company and make sure that dues are paid and changes are made? >> you made a very important point. i think with alibaba and the structure, that was the regulators intention, and you see they ran through this very quick ipo process in new york without really paying attention to regular -- regulator warnings. and you see these companies repeat its fines, they keep pursuing their marketing and self tactics from the
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regulators. these guys have not done enough self reflection. they have not taken enough self discipline measures, and the shoe hasn't been tamed yet. i think that's why you see this back-and-forth and waves of waves of regulatory crackdown. with the crackdown there is also bounceback. the platform industry players are quite the villain to the regulatory pressure so far. that's why you see their current dynamic. shery: eurasia group director -- haidi: really appreciate your time. in the meantime, this counter -- this may be counterintuitive, but if you're looking to seek shelter from volatility in your having to choose between chinese stock in china or in hong kong, you might have a better bet of finding a haven in domestically listed stocks. taking a look at the numbers, we are seeing the csi 300 tracking
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some of the biggest companies in shanghai and shenzhen, outperforming by two percentage points over the last two days over their counterparts listed on the enterprises index. the performance gap is at the most in a year and chipped -- in july, and analysts say it would widen because it sounds funny when you think about it, but if you are investing in these shares, you are potentially looking at less foreign capital, less foreign capital volatility and growth, and fewer sectors that are going to come under regulatory scrutiny. shery: and perhaps it also helps that they do have lots of those semiconductors and lots of those green stocks that have been rallying right in the past year. we have the global chip shortage . international investors don't have as much access to mainland markets that they do investing through hong kong. so this seems to be one of those things that investors are looking ahead that perhaps could be areas of growth. having said that, we have seen
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that potential investigation into the car semiconductor has stopped as well. so we are watching that crackdown as well. you can get more context and analysis on china's clampdown on its tech giant on redlined: china and big tech on the bloomberg technology channel on youtube. this is bloomberg. ♪
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vonnie: this is daybreak asia. u.s. envoy to afghanistan said the local government is too weak to win a negotiated settlement without a new military strategy. speaking at the security forum, the u.s. prepares to complete its throwdown this month. washington has 830 billion dollars on america's longest war. extreme heat increases straining the national power supply and wildfires. the soaring temperatures are also forcing the closure of ancient sites. it's greece's heatwave in decades. temperatures are 42 degrees celsius in athens. hot weather has sparked wildfires and impacts in turkey and italy. the sec chair is signaling a pathway for approving a exchange traded fund, a move that they say is crucial for taking it
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mainstream. in the first major speech, he said an etf that complies with the sec strict rules for mutual funds could provide investors with necessary protections. previously the agency had shied away, citing transparency concerns. the ftc's warning that companies awaiting merger approvals may be in for a long waits. the antitrust agency says it's processing the highest number of applications in decades facing a strain on resources. it says it sending letters to firms doing deals that can't be fully investigated within the 30 day waiting time, saying that their investigations will remain open. global news, 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts and more than 120 countries. this is a bird. haidi: it's going to be harder than thought to return immunity against covid-19 in the u.s.. the infectious disease society of america says the spread of the delta variant as pushed the
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threshold to well over 80%, potentially approaching 90%. a senior medical reporter -- our senior medical reporter joins us now. it feels like they are shifting goalposts here by just how we look at herd immunity, given the real-life application and efficacy of the vaccine, now the delta variant as well. what's the scenario? >> we have to remember that we are still learning on the fly. this virus is still not even two years old and we don't know what it will take definitively to get rid of it. we don't know whether it will mutate enough every year or that we need to get new vaccines on an annual basis like we do with influenza. but what the indications are now is that with the delta variant, is so much more infective than the earlier variant that we had. it means that we will have to have almost 90% of the population either vaccinated or previously infected. and while the study is coming out from the u.s., that is
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probably something that will be the same across the world. in order to get this virus to stop from spreading, we will need to have protection, and the virus does not change, the variant changes. but the way that each one of those work is the same. shery: does that mean that we are now seeing that latest uptick in infections for china? what can we expect for the economy there and the rest of the world given the delta variant continues to spread? >> exactly, the delta variant is causing havoc across the world and we are seeing it in china. the outbreak there is significantly lower than in many other places, but china has done such an excellent job of keeping the virus under control that it is really shaking the foundation of how they have approached day. so what they are arguing is shutting things down. they are closing tourist sites, they are shutting down trains, canceling events, reducing
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airplane flights in and out, so that will affect the consumer economy, and it is the delta variant as well, they really need to continue their vaccination efforts, and we will see how it plays out in the end, but at this point what they are doing is shutting everything down that will hurt the consumer economy and hurt mobile growth. shery: bloomberg senior medical reporter with the latest on the pandemic. plenty more to come, this is bloomberg. ♪
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>> the global semiconductors shortage has been impacting us. >> it has been quite a whipsaw for us in the industry. >> we are managing it day-to-day. >> the shortage will continue through the first semester of 2022 with some fluctuations on uncertainty. >> it is important -- it is important to have this and how we can anticipate that for the coming supply situation. >> it's out of our control. it does seem like it's getting better, but it's hard to predict. >> i think we have overcome chip shortage is so far quite well. we could manage. >> it something we have to do for the rest of the year. potentially into 2022. >> we have a lot of customers wanting to buy our cars.
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we want to build more and sell more. we don't see that improving. >> some of the world's largest automakers commenting. toyota released its fourth quarter earnings and investors will keep a close eye on production outlook. this as they tried to gain the automaker and can maintain its competitive edge in the spike in virus. joining us now is our reporter, river davis. river, we continue to hear about increasing demand with some economies reemerging from the pandemic, but also, the impact of the chip crunch, what can we expect question mark -- expect? >> for the recently ended april through june quarter, we are expecting to see strong results out of toyota and honda later today. there has been a number of automakers releasing results in the last few days. we had subaru yesterday and he should be shoe yesterday.
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and they are bullish about the level of demand they see globally, especially out of markets like the u.s. and china. so that should decently impact toyota and honda for the recently ended quarter today. haidi: we have seen these record sales, really strong global demand, as is mentioned, the chip shortages really playing in there as well. what do we see for the upcoming year? >> that will be the central focus today, the forecast of what the rest of the year will look like for these automakers. as i said, demand is really quite strong at this point in time. that being said, there are a affect production going forward for automakers, mainly the chip shortage. honda has been impacted by the chip shortage, but far less. toyota has been relatively unscathed by the chip shortage up until this point.
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it has strong management of its supply chain in this arena. the whether or not it will be able to sustain this going forward will be a central question. and that comes on top of another other impacts to production that are also forecasted for the upcoming months. there are business risks, including rising raw material prices in a research and covid cases in asia with the delta variant spread. for toyota, it had to extend production at the thailand manufacturing hub last week due to a rising covid cases in the country. so that's another factor that will impact production going forward. really, the core thing to look at today is how many vehicles these automakers are trying to sell for the fiscal year ending march. that will give us a hint on some of the confidence that they have in regard to overcoming these external factors, and actually producing to the level of demand we are seeing globally at this point. shery: river davis, our japan
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transport. pbg has increasing dividends. the ceo spoke to bloomberg's anna edwards about the outlook. >> i think our team has done a great job in the past quarter, and we have taken the decisions that you have just talked about, and they are based on three things. number one, the underlying performance of the business, i can say has been strong in the quarter. we delivered our cash costs savings target six months ahead of plan. we actually had the strongest convenience result in this quarter in our history. so the underlying business, first and foremost, is performing very well. secondly, the balance sheet continues to strengthen, this is the fifth quarter in a row where net debt has come down now to $32.7 billion. and thirdly, it's about our confidence in the outlook for the environment. so, when you look at it from
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that dimension, it's barely to reason that we have taken the decisions we have taken. $1.4 billion worth of buybacks in the third quarter and the 4% rise. next year as we look out over the next five years at in oil price of around $60, we have the capacity to raise that dividend annually by about 4%, as well as, by the way, $1 billion a quarter approximately of buybacks. that's $4 billion a year at $60, which is probably 5% of the market cap of the company today. that is really what this is about. >> so you have increased the dividend and you are doing the share buyback. i think you have said in the past that any excess cash would go and share buybacks and not in an increased in the dividend. we see a change of position in the dividend and why that change in thinking? >> our financial framework remains exactly the same.
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there are five elements to it, and the first priority in our financial framework is the resilient dividend, and that absolutely remains the case today, and priority number five is that we will distribute excess cash, 60% of excess cash to our shareholders in terms of buyback. what you are seeing around the dividend is really a story of confidence. it is a story of confidence in the underlying performance of the business. it is the confidence in the balance sheet, and 12 months on from when we laid out our strategy, of course the world is in a different place with the environment. global gdp is now back to pre-pandemic levels, the vaccines clearly are working, people are back flying, not to the same extent, but they are back flying, people are back driving. not alone that, but opec-plus has maintained a strong discipline. and then, the u.s. shale business, which has typically been a huge responder to prices,
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you are seeing a different business model emerge where cost of capital is higher, and investors and operators are being much more disciplined and focusing on cash. it is a very different world and that's why we have gone ahead and made the decision we have made around the dividend. haidi: bp ceo speaking to anna edwards. we are headed towards the china open. it will be an exciting day not only because of the ongoing crackdowns, but because alibaba. sophie: alibaba's earnings are taking a hit from those crackdown woes. analysts are looking through that report card. looking at the long-term outlook in the multi-app strategy. take a look at alibaba shares. switching on the board, we are watching casino stocks is the cow government tries to manage the outbreak by requiring travelers departing the city to deliver negative covid tests. over in singapore, flipping the board, keeping a close eye on ocbc shares.
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the bank is boosting their dividend after deliberating profit -- delivering profit. the shares have been outperforming many. haidi: coming up on bloomberg markets: china open, the cio talks after the alibaba revenue miss in the ongoing regulatory tensions. he sees the lower tech valuations are being on track for points. pmi also on cap. we will get standard chartered joining us for the breakdown of those numbers. that is it for daybreak asia. we are looking ahead to the start of trading in hong kong, shanghai and shenzhen. stay with us for bloomberg markets, china open. this is. -- this is a -- this is
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>> he made his first fne by cofounding companies such as netscape and all square. but made his name by launching the powerhouse silicon valley venture capital firm. >> we thought it was time to go back to the wealth and build a firm that was built by founders who understood the process.


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