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tv   Bloomberg Daybreak Australia  Bloomberg  August 8, 2021 6:00pm-7:00pm EDT

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♪ >> good morning and welcome. >> we are counting down to the major market open. shery: the top stories this hour. revised plans for a hong kong listing by early next year. beijing continues a big tech
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crackdown. delta variant worse across the pacific. we are seeing u.s. futures at the open. they are under a little bit of pressure. financials and materials leading the gains. so -- we saw the 10 year yield jumping. stronger data is not helping commodities. oil coming off its worst week in months. we even have uncertainty over this in the u.s. infrastructure bill. it was the best job in payroll
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numbers in about a month. when it comes to that jump, we are seeing the recovery be pretty uneven. rumors of a large surge when it comes to the average hourly earnings of the hospitality sector. still a long way to go to get to the pandemic levels. haidi: it looks like a major step for the fed. when it comes to the labor market recovery. you talk about the unevenness. i wonder how much distortion there really is in the economy area it is an unusual impact in the pandemic. i wonder how much longer that will be needed. i thought we heard from the president say that program needs
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to be taken sooner rather than later. let's take a look at how all of this will be playing out when it comes to the start of trading here in asia. sophie: we do have a muted start to the week. japan is off-line. it is bonds that are in focus. we saw some potential plateauing last week. d.r. vi is more hawkish than expected.
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an ongoing rally in chinese bonds. over at j.p. morgan, they are saying bonds are still a good bet. this is in the mix right now. we do have question on whether this could stem the rally in china. as what we are seeing for the outlook for the u.s. and china. haidi: we do have some breaking news when it comes to alibaba. a manager accused of sexual harassment will be fired.
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this is according to a memo we have seen. we have seen this document. they were saying that they were investigating the incident. all of this coming as china is cracking down on various tech sectors. let's take a look at all of these moving pieces. let's start off with this.
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a lot of pressure on this company at the moment. >> absolutely. we got a story late friday about executive saying they will be seeing higher taxes. this takes a backseat. now they are facing this sexual misconduct allegation. alibaba working very quickly. we are learning that the manager who was accused has been fired. he was suspended along with four other managers as they were cooperating with these -- police .
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he said he was shocked and ashamed by these allegations. they moved quickly to fire that individual. they said they have zero tolerance against sexual misconduct. more woes for alibaba. that led to the $2.8 billion fine. haidi: the bad news keeps coming. >> that is an interesting timing story. they have been using vulgar
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video content to drive traffic. perhaps alluding to these regulators cracking down on some of those moral hazards in the video streaming area. as early as next quarter or perhaps at the beginning of 2022. as well as a crackdown on the online tutoring. this is what bytedance has diversified into. they are shutting it down as of today. they will no longer take applications for foreign tutors for chinese students.
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there is a caveat. they said that report from the financial times was inaccurate. shery: an update on everything that is happening in china. a regulatory crackdown. we will have analysis on that would. we are staying with china. they are growing at their slowest pace this year. this could cast a shadow over the economy's continued recovery. we have the latest numbers.
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>> what we saw is export numbers. let's just figure out, last year, experts rebounded strongly. let's look at the bloomberg chart. that was down from 32.2%. that is the yellow line you can see there. medical equipment fell. no surprise. that is a plus for china. imports are up 36.7% in july.
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in real terms, take out the big pricing. they are down 21.4%. go back to 2019 before covid-19 hit. the numbers now as they grow weaker, are still stronger than they were in 2019. the difficulty now is they are headwinds. there are headwinds from domestic demand not recovering that much. it is happening in china.
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not just for china but in other countries as well. >> what are we expecting out of the inflation report today? >> some news that is not bad at all. if you look at the cpi, we are looking at food prices. it was 1.1% in june. from nearly 6% year-over-year in june. we know pork prices have been skewing the cpi numbers. this rose at the end of july.
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i think the pboc has to watch where things go. this is not there big worry right now. haidi: we do have some more breaking news when it comes to alibaba. the internal memo being circulated announcing that the manager accused of sexual harassment would be fired also elaborating that other managers who handled the allegations be forced to resign.
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they failed as critical decision-makers. they bear a responsibility. . a chief officer will be given a demerit. it does look like alibaba is trying to get ahead and make these decisions after what had been criticism over the weekend. let's get over to vonnie quinn, who has our first word headlines. vonnie: thank you and good morning. booster shots are strongly in favor for those of people with weakened immune systems. the plan could be implemented soon.
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debates leading up to a full senate vote on an infrastructure blueprint hit a roadblock. lawmakers are unable to agree on key amendments consider. especially on new cryptocurrency rules and flexibility or local governments. lawmakers have confidence that the full vote is just days away. singapore will recalibrate its foreign worker rules. the prime minister says the government is aware of heightened concern over foreign workers during the pandemic. >> we have to adjust our
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policies. we will continue to welcome foreign workers and immigrants. as we must. vonnie: the tokyo olympics artificially over. the most expensive olympic games ever held. the ioc president said the french flag was raised inside the tokyo stadium. the olympics are in paris in 2024. the olympic flame was extinguished. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. haidi: still ahead, more covid
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cases. coming up next, the market outlook. the implications for fed policy. this is bloomberg.
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♪ >> another incredibly strong jobs were. >> very strong report across all metrics. >> leisure and hospitality jobs are the top gainers. >> this recovery is coming in full worse. >> it is month after month. >> maybe it will last a bit
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longer. >> this will not be an earlier tightening. but it could be an earlier tapering. >> it risks falling behind the curve. >> very consequential report. i think it will be the next report. some of our earlier tests reacting to the blockbuster july jobs report. debate on the infrastructure bill has hit a roadblock. there are key amendments consider. always great having you. the stock market took it in stride, despite the very strong numbers.
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could we see a correction where strong data becomes bad news for the market? >> we have seen very strong gains in the market. we have seen this growth. in the momentum. that concern was the laid. that might bring a tapering. they announced that tapering in
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september. we have those strong gains. we are going through some volatility. the correction risk is there. historically, i am not concerned about tapering. all the worries about tapering where there. and then when the tapering actually started in 2014, it came to the realization that tapering is happening. just at a slower rate. in the meantime, you will still have very low interest rates. shery: where we going when it comes to yields? the 10 year yield has cleaved slightly higher. goldman is now calling it to the downside.
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>> i think there will be upside to yields by year end. we might have already seen the low in bond yields. i do believe that the company is still growing. there will be short-term uncertainty around the delta variant. i don't think there is the stomach for a shutdown. the u.s. economy will continue to recover. bond yields will go higher. haidi: when you take a look at the latest export numbers out of china, are there bowler abilities?
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>> they certainly are. we have an issue here with the delta variant. it has been brought under control in other areas. china has a good track record in bringing these things under control. it may take longer. in terms of restrictions, travel lockdowns. that means you could end up close to flat. by the same token, i think we could get it under control. haidi: always great to have you.
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we have more to come. this is bloomberg. ♪
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♪ haidi: let's get you a look at the day ahead for australia. they say this is a circuit breaker. this remains in full swing. we have lots more to come. this is bloomberg.
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♪ >> we need to look at them in a different light. we will almost certainly be boosting those people before we boost the general population. there is no secret that i feel we should not have central mandates from the federal government. given the fact that we are in somewhat of a very different situation with the accelerating
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cases, i would encourage private enterprises to seriously consider the idea of mandating vaccination. whether that is in a university or a place of his this. shery: this coming at a time when cases in the u.s. have rebounded. joining us is our editor in new york. let's get started. when a comes to u.s. cases, are we still talking about mostly unvaccinated people? >> it is definitely almost entirely the unvaccinated.
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numbers as high as 98%. but there is a raising question. we don't know how many there are among the vaccinated. it should be made extremely clear that people in the u.s. are protected quite well from sickness. there has not been enough testing to know exactly how many are unvaccinated. haidi: of course we heard from dr. fauci saying he supports booster shots for vulnerable people.
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>> i feel like it is a subtle shift. he said he was prepared to give boosters. it seems to suggest that efficacy does wear off. officials are very reluctant to say that. it is not needed. we might be moving the ball of little bit. he was admitting that we might need boosters. shery: australia, a large part
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of the population has not even had their first shot at arid >> you mentioned before the break that those cases for coming down those numbers remaining stubbornly high. queens lane had its cases diminished. these are encouraging signs. we have had 28 deaths in new south wales since the start of that outbreak. all of those people were unvaccinated. 54 people in intensive care, all of them unvaccinated. the key is to get shots in arms.
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people have been sluggish, but it is improving. 30.5 million people have had a dose of the vaccine and australia. 30% are now fully vaccinated. 75% will be fully vaccinated within four months. so things are progressing. haidi: is there a changing communication on whether we are able to go back to covid zero? >> the rhetoric is definitely changing on that. we hear from the premier. he has said that the best part is opening. the health minister was asked whether restrictions are strong enough. he said they are as strong as they have been since the start of the pandemic. he said people are simply not abiding by them. there were some questions around
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enforcement as well. victoria is now starting up its first drive-in clinic. the premier is saying the best option is to get large numbers of people backs and needed in a short amount of time. we are living with the virus rather than standing it out. -- stamping it out. haidi: really highlighting the impact of delta around the world. we have some breaking news. sanderson farms, one of the biggest chicken producers in the u.s., nearing a deal to sell itself. we understand they are in advanced talks. they are a smaller poultry processor. the deal could be finalized by early this week.
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victoria state recording 11 new covid cases. let's get some analysis of the challenge. always wonderful to have you with us. we are entering week seven of lockdown here in greater sydney. what should that look like? >> we are looking at where this is carrying. people are still coming together in family gatherings. there are more incidental exposures.
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it is really hard to go that extra yard with this particular variant. there are more incidental meetings. everyone at a gathering indoors. it is frustratingly stubborn. we need to find a way to bring this down. that is what we are trying to do in the public health response. >> we just heard from new york about how the u.s. is at a six month high when it comes to covid cases. israel is seeing very many infections.
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can we get to elimination? >> absolutely. the talk of covid zero, we have been talking about buying time. we want a soft landing. to keep us to low levels of covid. we have high levels of illness. it got hijacked by this notion that we could get to covid zero. i talked at the start of this current outbreak. shery: what about talk of herd immunity?
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it used to be the general that if you got 70% of your population vaccinated that get you there. but now we are seeing very contagious variants. >> that shifted the number. we have seen other variants. it has really changed everything. now we are talking 80%. there is still support. it really has been a game changer. we have really relied on that.
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shery: these strategies are gone. what are some of the risks until we get to herd immunity? >> we are really celebrating our vaccine uptake. we are in lockdown. things are not overwhelming yet. we are celebrating our rollout week to week. we get to 200,000 doses in a day. we will do that. we will achieve that. by november.
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if we can get there in that time , it will take a lot of work. we are still not clear in queens land. shery: it was great having you on. thank you. vonnie: the chinese city of wuhan as completed covid testing on more than 11 million people. this afternoon cases were reported. those people have been taken to hospital. bytedance is reviving plants in
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hong kong next year. even as chinese authorities widen their crackdown on technology companies. the listing could take place as early as next order. when contacted by bloomberg, a spokesperson said the report was inaccurate. a woman who filed a criminal complaint against andrew cuomo has spoken publicly for the first time, calling for him to be held accountable. she was formerly identified as executive assistant number one. she said what cuomo did to her was a crime. cuomo denies multiple claims of sexual's conduct. messi is said to have found a new home. espn reporting he will undergo a medical exam before signing.
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talks collapsed with fc barcelona. he was emotional at a news conference, saying he wanted to stay with the team. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: time for calls ahead of the asian trading day. we were watching this very closely last week. spending ahead of the beijing olympics. what are you seeing? sophie: a positive outlook. over at citigroup, there is a visible inflection point. we will get a added boost.
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shares have outpaced the competition. shery: coming up next, the tokyo olympics officially over. it will go down in history as the first without spectators. and the most expensive ever. this is bloomberg.
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haidi: the tokyo olympics are officially over. they became the most expensive games ever held. the beijing winter olympics are now just five months away. we got lessons learned from tokyo. >> it has been extraordinary. one of the most innovative games. many new technologies being applied. one of the most significant examples is the olympic broadcasting service.
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this is perhaps the biggest change. since the innovation of satellite transmission in 1954. as a global technology company, we are engaging in the experience. this is a very special games for us. >> how are these cloud services that alibaba provides, how will they be propelled even further? >> this marks the very beginning of our transformation journey for the olympic games. a lot of innovations will be powered. we do have a clear roadmap for the upcoming games. >> there are a lot of
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challenges. covid, the call for boycott. half of the population of japan did not want to hold the games. does this pose a marketing challenge for you? what is the cause of this? >> we have commitment to our partnership. it goes beyond a traditional marketing sponsorship. we want the world to see the on big games in a different way. this is not just putting a logo beside the five rings. this is how we utilize technology to get into a different digital world. >> what is the revenue boost? you have merchandise value.
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what is the tangible impact of revenue for you because of your sponsorship? which i'm sure costs a lot of money. what are you getting back from it in solid terms? >> credibility is priceless. after we released the news that these games are powered by clouds, we got so many requests from companies around the world. i don't think there is a very good way to talk about it. this is really the growth of this power. in a very positive way. >> talked about the credibility you gained from sponsoring these
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games. how will you go ahead and market the company at a time when you are under pressure from home by regulators? you have to be high-profile. how do you do that? >> i don't think we raise or lower our profile for anything. there are all of the regulations. in all of the markets we are in. this is something we will make sure to keep doing. that is driving the growth. shery: speaking exclusively to us. this could be eclipsed by the beijing games. we look at the obstacles in the coming months. >> beijing is promising a successful winter olympics in february. a number of hurdles stand in the way.
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officials are yet to share quarantine plans. even fullbacks and -- fullbacks and might not be enough. a national ban could be limited. beijing may allow some crowds. four other social distancing rules, they could look at the tokyo playbook. infrastructure is where beijing can shine. skiing events will be staged in a desert. china will be relying completely on artificial snow. some are calling for a
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diplomatic boycott of the games. pressure is being applied to key sponsors. china says any rational company will respond with the right judgment. beijing has a chance to show the world. another challenge for a country. shery: we have much more ahead. stay with us. this is numbered.
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haidi: warren buffett took a step back with his capital and women. -- employment. just a billion dollars since mid-2020. joining us is our financial reporter. >> he has really been struggling. we saw that during the second quarter. the trash pile is now close to his record. he did spend $6 billion on buybacks.
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even that was a slower pace than the past year or so. i think investors are really questioning, will there be attractive things for him to spend his money on? will there be ways this huge conglomerate can do this? shery: tower berkshire businesses doing right now? >> they are faring quite well. we saw operating budgets climb in the third order. a lot of the businesses were firing on all cylinders. the u.s. economy has been recovering. even the railroad posted a record profit. all of the rail traffic across the country. all of the products that can be measured in the last year. shery: our bloomberg finance reporter with the latest on berkshire. coming up in the next hour, we
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will look at potential future regulations of cryptocurrency. that as bitcoin touches its highest in mid-may. that is next. this is bloomberg. ♪ and there you have it -
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♪ >> welcome to "bloomberg daybreak: asia." >> good evening shery ahn. asian investors start the week with a slow down and chinese experts grow ahead of inflation data later. >>


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