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tv   Bloomberg Daybreak Asia  Bloomberg  July 4, 2022 7:00pm-8:00pm EDT

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♪ haidi: you're watching daybreak asia coming to you live from sydney and hong kong. annabelle: we are coming down to major market openings. david: this hour it is rate decision day and the rba is seeing hiking up for the eighth straight month, signaling tightening may lie ahead. president biden may announce a rollback of u.s. tariffs on chinese goods. that could come this week as he looks to curb inflation. now, that could help risk appetite as we headed to the tuesday session. asian equity futures pointing modestly higher to the dollar. holding steady. haidi: let's take a look at inflation. inflation top of mind globally, but we've seen south korea's cpi jumping 6% in june. that is the fastest pace of inflationary growth since
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november 1998. we are seeing that outstripping forecasts yet again, really boosting the case for the bank of korea to go ahead with a jumbo sized rate hike last week -- next week. consumer prices up 6% from a year earlier, up by .4% in may according to statistics. back in november, prices rose 6.8%, so that is the fastest since then. economists had been expecting a little it under that at 5.9%. of course, the be ok like most other central banks have been preoccupied by the rapid pace of price gains. increasingly expecting the bank of japan to -- think of korea i should to carry out a half percentage point to get these inflationary pressures under control and of course, that key risk of the feedback cycle of rising costs and pushing up wages as well is key for the be ok as well. let's take a look at markets reacting bell.
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annabelle: one of more than 80 banks hiking rates and the rba of course is another one because you got the rba decision as well today and we could get the third straight hike here. what is important is the magnitude of the move because 25 out of 26 economists are seeing a 50 basis point move higher which would be the first back-to-back hike of that size we have ever had on record. bonds are trading ahead of the decision. we have the rate sensitive three year yield in focus this morning, but pretty much muted this morning. another factor of course is we have the july 4 holiday in the u.s., so trading volumes are looking in across the board this morning. let's move on to check on where we are heading for equities trading this morning as well. we are looking to a more modestly positive start. with asx 200 futures, but kiwi stocks trading just a little bit higher and also chicago futures pointing to a small move.
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that is what i wanted to say. the point here is that there are factors that could determine where we go if the biden administration also is possibly rolling back tariffs, david. david: that move is too small to mention. and that is just being generous there. all right, in terms of the eco-data coming out today. we talk about korean inflation being literally not exaggerated. we will take you into the philippine inflation coming out about two hours from now. and the rate decision out of the rba later today. haidi: yeah and bloomberg's economics is saying the rba is no longer willing to wait for that evidence of wage growth before hitting. what are the choices for the rba, what is on the table. i thought it was interesting when we spoke to andrew burkert, one of the three economists who
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got it right, he said when you take a look at household credit, income, there is a bit more of a buffer for the rba to be working with here. >> yes. and they have mentioned that as well, that households have a lot of financial buffered and their ability to withstand higher interest rates is much stronger today. which is why markets and economists are predicting a 50 basis point increase today. there is a risk of a move to 75 basis points, but low has signaled that it will be a decision between bids or 50 bids. david: how hard would it be to discount his ability to surprise us again just looking at what he has basically done these last couple of decisions?
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>> to be fair, since he spoke about the decision for today's board meeting, we have not really seen anything crazy happening in the market in terms of prices or in terms of any data that has come through. so i think we can count on him to deliver to his words. and in august, we will have -- the rba will be looking at the second quarter inflation report and their in-house forecast as well. they have to do a more hawkish surprise on this term, instead of july. haidi: if households are indeed robust, demand for commodities a strong, trade is so strong, does that mean austria is not looking down the barrel of a recession like the rest of the world might be? >> that's right, heidi.
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economists in australia are not expecting that kind of session here. and it is all of those factors that you mentioned. even right now, the economy is running pretty hot and economists are talking about the strength in households and their ability to withstand higher interest rates we had some tiny data from the banks on spending for the month of june. that seemed pretty strong. it could be the end of financial sales as well, but it seems like so far, we have had 75 basis points including in may and june. and so far, it seems like households are still going out and about, spending, and it has not really affected their ability to do everyday things. david: swati, great stuff. our economics reported. let's turn our potential right
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now to what could be a development this week. reports of such are boosting sentiment to some extent. we're talking about president biden here, may announce as soon as this week, we will see the timing and terms of the rollback of some u.s. tariffs on chinese consumer goods as of course the white house looks to more steps to cool surging inflation in the u.s.. let's bring in eric martin, our colleague based in washington. eric, thank you for coming on the show. just take us through i guess what we know about where the white house is in terms of this decision. has a decision been made? eric: thank you for having me on. what we know is that there has been meetings within the white house, with the administration in recent weeks, involving members of the cabinet. they mention something being discussed. president biden said that it is something that he is considering or is evaluating, whether to make changes on these tariffs. these are tariffs that have been in place for -- that were
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inherited from the trump administration, but the biden administration thus far has kept them in ways. they are getting increasing pressure, both from some democrats in congress. we saw tim kaine the other day, a senator from virginia and 20 vice presidential nominee, suggesting that the tariffs should be removed in order to provide inflation relief. as well as some members of the administration. it is something the treasury secretary janet yellen has been talking about. so it is something getting a lot of study within the white house and we've come to understand that as soon this week, we may see some movement there. haidi: when we spoke with the u.s. trade representative katherine tai last month, she did say that having these tariffs over beijing is good negotiating leverage. so does that feature into the decision-making here? eric: it absolutely does.
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they lined that investor tie frequently uses is that a trade negotiator never walks away from leverage. we have seen people like senator kaine just yesterday noting that we are supposed to provide leverage to negotiate with china and yet four years later, china's behavior and theft of intellectual property have not substantially changed. a lot of people are questioning how much members provide and how effective they are in their ultimate goal which was in july of 2018, getting china to change its behavior. haidi: bloomberg's eric martin with the latest on the potential rollback of some of those tariffs, u.s. tariffs on chinese goods. take a look at futures, we are singing turnaround before previously we saw u.s. futures falling along with european bonds as why investors are preoccupied by twin concerns of
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slowing growth, recession fears, stubborn inflation and the ability of policymakers to be able to do something without policy missteps. it started to see s&p futures really turning in around 6/10 of 1% higher. of course we happy july 4 independence day long weekend with no trading in u.s. markets this weekend. nasdaq 100 futures up by 1% and the dow also in the green by about half a percent as well. we saw european stocks rising for the first time in four days, but contracts on the s&p 500 and nasdaq had been really it following these underlying index losses of about 11 declines in the past 13 weeks. so we will see if things start to improve with markets reopening after the long weekend. let's get you the first word headlines now. police in chicago out hunting a gunman who killed and wounded dozens. a high-powered rifle was recovered from a rooftop, but
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the shooter remains at-large. president biden says he is shocked by the july 4 violence. last month, the president signed the widest range and gun violence bill passed by congress in decades. ukraine says it needs 60 to 65 billion dollars this year to meet its funding requirements. the amount excludes defense spending as part of a larger bloomberg -- blueprint for reconstruction. it's expected to exceed $750 billion. the recovery plan unveiled on monday pointed to three stages extending to the next decade, starting with rebuilding infrastructure this year. unknown hackers have stolen data on as many as a billion chinese residents after breaching a shanghai police database. it could be the largest cyber security breach in history. the hackers are asking for 10 bitcoin worth about $200,000 for data including names, birthplaces, national ids and other information. moravec you wish and orders have been issued for flooded parts of
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-- evacuation orders have been issued for sydney. mainly for people stuck in their cars in rising water. heavy rain is forecast for austria's biggest city and nearby regions, wind up to 90 kilometers per hour could bring down trees and power lines due to saturated soil. in those your first word headlines. david: yeah, really just coming up here on the show, we talk about of course the weather in australia, certainly climate change, that is going to be a big topic to come. head of security joining us this hour and they're going to tell us that the region was ill prepared for food security driven by the climate crisis. head of that we're talking markets. our next guest believes markets will remain in an uptrend all the recession fears have picked up. that is just ahead in capital markets. you are watching bloomberg. ♪
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>> best case expectation is not for a recession. we do expect continued monetary tightening. you may see a technical recession, but what really matters is the investment landscape in opportunities in fixed income sectors. the magnitude and be characteristics of the recession. david: that was goldman sachs macro strategist taking us through the thinking there as it pertains to recession expectations or not. for more analysis, but spring in
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market strategist. good morning, things were coming to the show. why don't we start there? a lot of people talk about a recession, they don't talk about the type of recession we might potentially get. what assumptions are you making in terms of how deep something might be in the u.s.? charu: it does look like we will be in a technical recession, which essentially means there will be two quarters of negative gdp growth and bjp model is expecting growth of -2.1% after we saw -1.6 in q1. so of course it does look like we are getting into a technical recession, but if you look at proper recession definition, it has to be a broad-based decline across all sectors of the economy over an extended time. so our best case is that we are not going to see something as deep as that and there will be pockets of opportunity in the u.s. economy still. and the bigger concern or
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monster to handle will be inflation. central banks will have to continue to be aggressive to fight back. david: are we passed the peak of that story is what i am wondering? one of the things that you were pointing out -- i want to make this into a t-shirt by the way, bonds may become relevant again in the second half. charu: absolutely. our sense is that as you've seen, treasury yields have been capped over the last few weeks. even the fed raising rates in july, possibly by 75 basis points, you know, we might see further uptick in the yield, but more or less, the markets are now battling the story around inflation remains high, but at the same time, we are starting to price in a recession for next year. so the room for yields to go up from here it remains limited because of what we do think that in contrast to the story that we
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have seen in the first half of the year, where equities and bonds have been in acorn aided selloff, it may be a time when you see a divergence between the two and equities continue to be sold off further because of earnings disappointments, recession fears. but bonds will certainly provide some stability in portfolios now. haidi: the outlook for china is mixed and different. does that mean we could see potential for recovery? charu: in terms of china? haidi: yes. charu: yeah, i think for china markets particularly, we do expect that we have seen the bottom already. but again, the path is going to be a bit more patchy from here, because there remains a risk of some targeted lockdowns into the end of the year, into next year perhaps. also in terms of the regulatory cloud, we do see a lot of these
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targeted support measures coming from the authorities right now. but we can never be completely overt with the regulatory hassle in china and that means that you got to be cautious with that market. haidi: when it comes to the rba decision, has 50 basis points already been priced into the markets? i would likely to see any kind of sustained rally into the aussie dollar? charu: reserve bank of australia is actually in a tricky situation, where if they go for a 25 basis points, that is dovish, if they go for 50, it is as expected, so they really need to go beyond that. they could potentially move 75 points to surprise the market. my sense is even if they go beyond 50, they support they will provide to the aussie dollar will be robust. i think in due course of time,
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the aussie dollar is more sensitive to global risk sentiment, rather than being dependent on domestic development in australia. david: charu, i guess final question. we're moving into the second half of this year. sometimes it can be very simple. do you think stocks will beat higher compared to current levels? charu: stocks, i think like i said, there is a lot more disappointment to come. earnings season later this month , where you are likely to see a lot more disappointment. analyst ratings are high compared to what the companies have been guiding. so my sense is of course equities are going to go down from here. haidi: market strategist at capital markets with us. you can get a roundup of the stories you need to go to get your day going in today's edition of daybreak. terminal subscribers can get
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that at dayb . this is bloomberg. ♪
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david: right. about 20 minutes ago, career minded as inflation remains a hot topic and in that case, highs on inflation. a little higher than 5.9%. just ahead as we count down to the open of trade, 40 minutes away, opening bells in tokyo and korea. we'll start things in korea, where as we point out, front and center, bolstering the case of what type of rate hike we might actually see out of the bok. the decision is wednesday next week so stay tuned for that and how these estimates change when we get closer to 50, in terms of an estimated increase their in
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borrowing costs. also coming up, foreign reserves -- also came out past tense, 4.10 billion dollars in june, fourth month of declines, largest since 2008. a lot of this comes down to try to smooth it out and stem the weakness we are seeing in the currency, which on that note, 13 year low on the korean yuan. the president is set to hold a cabinet meeting. stay tuned for headlines from that. shifting to japan, where boj chief economists say we countries inflation in staying on theme will be stronger and will last longer than the central bank expects, making an upward revision of its price outlook later this year. out of the boj, we will get a measure of -- here we go, yes, one of your favorite metrics, labor cash earnings should be out in the next minute or so. that is ahead of pmi numbers for june. forward-looking, that should be out i believe what?
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over an hour from now. haidi? haidi: let's get you a check of the latest business flash headlines are credit suisse is set to cut more than two dozen roles at the investment bank in asia. the lender is grappling with losses and a weak outlook for the economy. reductions fall across businesses including dealmaking and trading. more cuts are expected to follow in the fourth quarter. bloomberg has learned that a group is the front runner in the stake in the wireless unit. kkr's proposal is more attractive. they are expected to make a decision this week and they have been valued at $20 billion in any deal. coin bank crypto lender vauld is exploring restructuring. it is suspending traded three weeks after saying it was processing withdraws as usual and will continue to do so.
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rivals said they will finance and they are resorting to last ditch measures to survive the market rout. david: hopefully the route, most of it hopefully is behind us. who knows really what the future brings, but certainly this week or so, gains on monday. u.s. markets were shot. sick will be getting more gains this tuesday. -- looks like we'll be getting gains this tuesday. half of 1% to the upside though. cash markets are shot. new zealand up 1%. let's put the boards and have a look at where we are in u.s. futures i believe here. so we came out of bed and sort of meandered around for about an hour or so. picked up momentum as you can see here on your screens. this is dollar-yen, but indicative of risk appetite if you will. also weakening as far as the japanese currencies, u.s. futures, nasdaq for example, s&p futures, all to some extent offsetting some of the week is that we had in yesterday's
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session. we will see if that continues. let me just borrow a line from mark cranfield out of our mliv team. telling us about the absence of a clear trigger and in his words, not mine, if there is not anything concrete behind this move that we are seeing, it may all reverse before u.s. cash markets reopen later in the day. so enjoy the green while it is still in front of you. 9/10 of 1% nasdaq futures right now. all ahead of course of key data points. we talked about south korean inflation and cash earnings out of japan. pmi numbers o
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david: oh man, bad news. more bad news here. don't shoot the messenger. cash earnings out of japan are outcome of this is for may. we're coming off 1.7% in april. expectation was one half percent. 1%, that is labor cash earnings. real cash earnings i imagine could use some adjustments, maybe on inflation. we were actually down, which really highlights the pickle that the boj is in, engendering inflation, the consumer struggling with it. -1.8%. real cash earnings in japan from the year before. dollar-yen as you can see, session highs right now. all right, how does this set up as we are approaching the opening bell? measures of risk appetite, looks like were going to get day to gains may be.
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annabelle: head of the open, japan, korea, australia starting in 30 minutes. i'm going to finish with what you are saying there. we did get the wages data and it does involve the boj sticking with its policy of easy settings. having a look at what we are seeing in high-frequency indicators as well because bloomberg economics will be looking at where we start the end of last week and it is not a great picture either. one of the positives is that mobility, that did gain, so we saw it up for a third straight week. more people using public transport. your visiting shops, recreational venues. and as you can see within at 9% of the pre-covid level. on the flipside is we do see more people moving around and we suck of the cases jumped nearly 30% on the week higher. -- we sought covid cases jumping 30%. crunch on consumers while it's as well, specifically concerns around job security.
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we are seeing more searches for unemployment and then the other factor that was on that board was prices are getting expensive, daily essentials rising 2% on the year and also nearly 2% on the week. speaking of inflation as well, were going to get the boj forecast for their inflation outlook and about two weeks from now. we are hearing from a former chief economist at the boj, this is price pressures growing stronger and lasting longer than what is currently predicted. haidi: korea's inflation, let's get back to the forecast. everything a month so far this year, see pmi numbers also. let's bring in enda curran. does this embolden the be ok particularly, as they have raised the minimum wage there and there are concerns that they would be feeding into this
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feedback loop of inflation and wage expectations? enda this comes a week before: the next be ok meeting. lock the need for a 50 basis point hike. he's already signaled they will do what they need to do. like you mentioned, some factors that south korea's try to keep an eye on is the risk of a wage price borrow. minimum wage up by 5%. workers voting to go on strike. those are triggers for any central bank really. and of course, let's not forget the fed impact, because the fed is aggressively hiking and that is putting downward pressure on the you want and inflation. south korean policymakers look at this this morning, 6%, highest since 1998, at the very least they will have to say it lends itself towards a 50 basis point move when they meet next week. david: what about china? let's talk about that. we have another data point
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within the pmi of course or june coming out today and then most of what we've seen so far, it does indicate that june was better than may. what are we expecting from this specific one today? it is the composite. enda: the take away that people are looking at is how the services side of things is going to be improving or not improving and the pace of improvement. we know broadly speaking that china's economy is expected to have bottomed, david. that is become clear in pmi's last week and other high-frequency readings that we have had. the question becomes how pronounced recovery will be. a pickup, the reading was in plated -- inflated by logistics. there is still pressure on key sectors and easing out and the like. those are the parts of the economy that people are looking to see whether they will get a lift, but we had news yesterday again of ongoing outbreaks across china. we know of course the
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authorities are sticking with their very aggressive approach to controlling the disease. there isn't honest -- there is an obvious look health component. a lot of people are looking at the moment to confirm not just bottoming, but to see what kind of pace of recovery there is going to be. david: yes, the economy being from a markets perspective here in a different business cycle compared to most everyone else. enda curran, chief asian correspondent. have inflation coming out of manila, so the latest reading, 6% inflation out of the philippines. by the way, there we go, special guest coming up exclusive interview with filipino governor phillipe taking over the top post at the oughts -- the offset of the rate tightening cycle. stay tuned. let's get you an update of your first word headlines. we are starting off with a look at chinese tariffs here.
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potential removal of some with president biden announcing as soon as this week a rollback of some of those u.s. tariffs and chinese consumer goods. a new inquiry into industrial subsidies can lead to more duties and strategic tariffs, including tech. sources say president biden has yet to make a final decision and a move would mark his first major policy step on trade ties between the world's two biggest economic powers. let's look at russia, crude exports rebounding last week but shipments to this part of the world, the asia-pacific, slipped. crude lows from russian points were up week on week by 22%, but supplied to the crucial asian market was down more than 50%. a four-week average basis. china and also india had been stepping up their buying of russian exports, shunned by the west in response to the invasion of ukraine. now china said to invest up to
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$3 billion in indonesia's wealth fund. that is part of an agreement signed by indonesia's investment authority to strengthen economic ties between the two. indonesian president aims to have $200 billion within defined within the next few years pretty other investors are still being invited to contribute. now, over to singapore, talking crypto now. regulators are considering new crypto rules to protect consumers as asset prices plunge. central-bank chairman says that it may include limiting retail participation, a 2 trillion market selloff has engulfed a growing list of players, including singapore-based terraform lab whose coin imploded recently. another singapore leader, vauld, says it is looking at another restructuring after liquidity. those are your first word
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headlines. haidi? haidi: david, heading to boston now. a big delight fourth holiday tradition returning after a three-year coronavirus hiatus. that is the boston pops fireworks spectacular. you can catch it at, also being broadcast on bloomberg radio. this is bloomberg. ♪
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>> it is not only admirable, it is not somewhere local or east of here, no. the russian invasion is everything we hold dear. therefore, the reconstruction of ukraine is not a project. it is not a project of one nation, but a common task of the entire world. >> russia's act of aggression against ukraine has forced us to unite and face up to this war with all the determination that we can muster. and to commit ourselves to supporting the ukrainian people on the long road to sustainable recovery. david: and that was ukraine the
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president and his swiss counterpart speaking at the ukraine recovery conference taking place in switzerland. we are tracking of course -- and this is going to make sense in a couple of minutes here, the fallout from the global supply chain crunch and one of our top stories is the fault that we will see out of ukraine. the country has indicated that it needs 60 to 65 billion dollars. to meet its funding requirements. the funding is more than allies have been able to pledge. the amount needed immediately includes assistant for emergency budget funding and which is for structure. seaborne crude exports to july 1 show segments to asia are slipping even as close -- diverted to the black c-terminal to cut the voyage distance to india. asian cargoes here were down more than 15%, that is the
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four-week average basis of highs that we had back at the end of may. now, the other big story was over in europe and natural gas massive move up there. highest in almost four months, as plants strikes in norway threatened to tighten the market that is already quite tight. reeling from russia's supply cuts. workers union says the strike will as good further from july 9 if no solution is found to that wage dispute. and for our bloomberg clients, do check of course more on those supply chain stories in our newsletter, supply lines. that is and i trade and l. haslinda: --haidi: concern globally due to the ongoing war in ukraine could our next guest says climate changes the other major risk on australia and the asian-pacific, that are ill prepared to protect food insecurity. turning us now is ian.
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great to have you with us. and we know that the world in a lot of ways, a lot of different regions, is at the press appends of a global food crisis. how well-placed is australia, given that we produce so much here to mystically? and the rest of the region? ian: good morning and thanks. we are faced with an extremely serious position globally on food security, which was developing before ukraine war began. and obviously, that has severely impacted upon food availability. australia itself is not well prepared to handle this problem. we certainly produce a lot of food, but i think the real problem is that we have not properly understood the implications of climate change. and the impact that that is going to have on food security
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and on the supply chains that obviously operate around it. the risks of climate now are far greater, i think, than any of our global leaders, whether in australia or around the world, are being prepared to really accept. because the ukraine crisis sort of came on top of what was already a quite dangerous situation developing, of course, these problems are becoming bad. haidi: i find your background to this quote really fascinating because among some other things, you are a senior executive, ceo of the australian company of directors as well as the chair of the australian coal association. with that background across oil and gas and commodities, how does that inform you when it comes to your recommended strategy for how the country comes together, when it comes to the climate transition? because we know now that we have
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more independence and a government that is more ambitious when it comes to the transition. ian: since the second world war, the world has developed in the back of cheap fossil energy and that has produced a great increase in wealth around the world, obviously. the type of economic development you have been talking about. the problem we have got as we've known for years that sooner or later, there was going to be a cost attached to that, because of the climate impact in the carbon emissions coming from the use of fossil fuels. we have not reached that point, we have reached it some years ago. our leaders have not been prepared to accept the reality of that. and we are now moved from a time when people talked of orderly transitions to a low carbon world in the future to one where we have left it too
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long because of inaction and we are now faced with continuing disruption as we try to make that change. now, we've known about this for a long time. i mean, when i first watched the genuine global emergency and trying to transform the world economy into a low carbon basis, it has not helped obviously by things like the ukraine more. and i think what global leaders have to realize is that conventional concepts of geopolitics and so on are going to have to be completely rethought. leaders are going to have to have a complete reset and the way that they look at the world, because what we are faced with is now an existential threat, which has the ability to nothing less than destroy civilization as we know it. so we have to start to face up to that and change the entire basis upon which we are trying
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to move forward into a sustainable future. david: ian, david here. and as you point out, even they were has or might not just australia. i hope every country will look at really their resource security issues. the more countries that look at that, it is the right of every country to do so, the more difficult it becomes, because i guess for the lack of a better verb, according comes to mind. --hoarding comes to mind. what is the multinational approach here? ian: you've got to accept that the world is in an era we have never experienced. we've never had anything that is a genuine global emergency of this kind if you look at the pcc negotiations from conferences, the u.n. conference, the orientation is around the idea
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that some path if we get to net zero emissions by 2050, then we have solved the problem. that is complete nonsense. the reality is we have to reduce our omissions extremely quickly now. our view from the security leaders perspective and based on what the science has been telling us now for about a decade or more, is we have to get not to net zero, but 20 emissions. as close as possible by 2030. this is a massive task, it is not one that is excepted amongst the official positions anywhere in the world virtually. but the scientific community have been skimming about this for years, so we are facing -- if you look around the world right now, you see disasters occurring in pretty much every continent . whether it is the floods and things we have or what happened in china, the extreme heat in india, the problems they
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have in the alps of italy in the last few days. these events are just compounding one after the other in a cascading effect and we are going to have to just recognize but that is the reality that we are facing and conventional ideas of economic growth are going to have to change. we cannot continue with the conventional expansion of using more and more resources and pushing more carbon into the atmosphere. we have to go complete reverse as fast as we possibly can. and nobody is talking about that. that comes into the entire geopolitical debate, whether it is wars in ukraine or what happened in the south china sea or anywhere else, people have got to start to realize that there is a much bigger problem, which is how the world is going to manage to handle clement change. and -- climate change. and to survive -- and to provide a secure future for committee.
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david: we will use that as a jumping off point to our next conversation. thank you for joining us in austria. security interest group chair. be sure not to tune in just about, but we are on radio. so in case you're watching tv, we're live from our studios in hong kong. in-depth analysis from our team accrued listen at radio plus or bloomberg that said, there is plenty more ahead. this is bloomberg. good morning. ♪
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david: welcome back to the show. we're looking at china and the recovery there. power demand in the country and growth slowing down as you can see in the graph. during the lockdowns this year, our colleagues at bloomberg show consumption picking up again as the government rolls out a massive infrastructure plan and it to me was. let's bring in our head of china research, joining us right now. there is obviously the lockdown effect and the pace of the recovery here that we need to take into consideration. it is the covid situation going to influence how china approaches its renewable strategy? nannan: hi. actually, no. china is going to increase the consumption. the manufacturing sector is influenced by covid during the
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consumption sector, for example, the winter, production is scattered across china so it is less impacted. a third, china plans to install most of its wind and solar it in the western part of china -- in at western part of china. the energy project which has a hundred wind and solar will be commissioned this year or next. only 1% of those be installed in the latest outbreak of covid cases in the past week. haidi: how does that play into the overall picture of chinese oil demand? nannan: the oil demand has already showed some great recovery after months ago from the lost friction to receive rural congestion on a roll and the gasoline consumption is rising. diesel we are consuming more as the supply chain has more
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momentum, has been more ships. having said that if the lockdown continues we will see this trend will reverse their with the recent recovery. haidi: bloomberg head of finance research there. what's get you a check of the business by headlines. japanese comical supplier is expected to raise prices and cut back on profitable product lines. tokyo-based company supplies chip fabrication materials to the likes of tm and c -- tsmc. in at least a dozen times this year due to supply chain snarls, surging energy costs and the ends dramatic weakening. kenny has ordered the chinese backed firm to stop operations at one of the world's largest untapped iron or deposits. this is after the deal to codevelop the project. the west african nation had chinese partner until june 19 to create a joint venture before extending the deadline.
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bloomberg's inc. told that airbus delivered about 55 jets in june, leaving it close to its for your goal. our sources airbus has ended fewer than 300 planes in this year against the 12 month target of 720. supply chain issues and material shortages are holding back deliveries, even as it seeks to lift production. those inflation concerns, we have an exclusive interview, dave, tell us a little bit about it. david: if you're just listening to us i will tell you right now, philippine central bank governor is joining us and about 40 minutes from now. live from manila of course, he is the newly anointed monetary policy chief there in manila. we will talk about what they plan to do about this inflation conundrum, that is next. plus the market opens. this is bloomberg. ♪
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