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tv   Bloomberg Markets Asia  Bloomberg  February 20, 2023 9:00pm-11:00pm EST

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our top stories, asian stocks and u.s. futures slipped as concern the fed will keep our when costs higher for longer outweighs optimism of a chinese recovery. president biden pledges more military support for ukraine on a letting visit to kyiv as china floats a peace plan that is being met with skepticism in the west. plus, bhp slashing its dividend. we get the outlook live in just a moment. with ceo mike henry. rishaad: let's have a look at markets. at the moment flirting with the gain line in hong kong. we were up, now we are .33% down. looking at the federal reserve primarily. u.s. equity futures are retreating. monday was the presidents' day
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holiday. we have essentially stocks under a bit of pressure here. down to the prospects of central banks tightening policy more than expected to tame inflation. looking at the dollar index, nothing to write home about. weakness is persisting. we have moves here coming about against the backdrop of some positivity. goldman sachs protecting yesterday along with other banks that chinese stocks would gain an goldman sachs saying it would be a 24% gain in 2023. haslinda: in their broader markets we have the likes of j.p. morgan saying there is just too much optimism right now. let's bling -- let's bring in mark cranfield. first off, the rba minutes, talk about hawkish. mark: they put themselves in a bit of a tight spot.
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if you look at some other things they said, they are calling the technical rate the peak 3.75. that is still effectively two hikes away from where they are now. in a way they are almost dancing -- they give themselves an internal forecast now will be very difficult to back away from. even if the data in the next couple months changes the outlook. they have pretty much committed to go towards that 3.75. so they have to sound hawkish. they have upset the bond markets several times the past several years by backtracking at the last minute. they are setting themselves up for another difficult spot because if the inflation data in australian it tends to be the big one is the quarterly one -- if it does not match up to what they're looking for they will have a tough job because they have to the back to the market and say our target was a bit too high. it will be difficult trading for aussie bonds but it has been all year so people are kind of used to it. rishaad: i think your colleague
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simon flint was writing a piece on japanese assets facing fat tail risks because of the bank of japan's stark choice it has in front of it. mark: mr. you wait up -- ueda, a lot of it is based on what he said in print a year ago. he suggested if you are going to change policy you are probably better off doing it all in one go rather than trying to do it in stages. there has been quite a few people guessing that in japan we have yield curve control which has not been working well for japan, costing a lot of money. some people are suggesting the remove yield curve control could then they shift native rates from -20 and then gradually the start hiking rates to a more normal level. the information from is to ueda's piece, -- from mr. ueda's pie is itce. --
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a lot has changed. at the time he was not be candidate to be bank of japan chief. you have to consider all those facts when you look at those things. but if that is his intention then things are going to get very interesting for the market and we are going to see very abrupt movements in japanese bonds and the yen. haslinda: we are looking forward to seeing how it all develops. bhp has slashed its dividend after the world's largest miner had a fall. gavin went told us the results were hit by a number of key factors. >> there were three key factors that really impacted bhp. it had been subjected to enormous commodity price volatility. it has had uncertainty with respect to demand. that has pretty much been led by china. and of course there has been the
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impacts of inflation on the cost side of things. haslinda: joining us now to discuss the results is bhp ceo mike henry. good to have you with us. so much optimism pinned on the reopening of china going forward. bhp included. i am just wondering, how are you assessing that and the risks that may come with it? mike: so yes, we're optimistic about the outlook for china as well as for underlying business performance. in respect with china, we have seen the big two policy shifts recently around zero covid and more progrowth policies being put in place for the policy sector. that has been backed up by firm statements from the governor that are progrowth for the year ahead. very importantly we are seeing the green shoots come through from the start of the calendar year. increased mobility figures, more bank lending, improved business sentiment, property prices up in some cities.
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so that kind of reinforces the positive outlook that we have for the year ahead, which we expect to offset slowing growth in both the u.s. and europe. the other cause for optimism is the strong underlying business performance. we see that coming through in the recent half. production up across all of our major business divisions, another record half and the iron ore business, the biggest business in bhp. and we have stretched our lead as the low cost operator. now 12% has opened up between ourselves and the next best, which gives some sense for the way that we are navigating what is otherwise a high inflation environment. the focus on operational excellence is standing us in good standing and we expect that to give us momentum. haslinda: give us a sense of how that impact demand for bhp's commodities. where will we see the biggest growth? mike: we are forecasting stronger growth in both china and india, or them offsetting
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perhaps slightly weaker growth in the u.s. and europe. it is very much commodity dependent. steel of course, the game is all about what is happening in china, at least from a seaborne iron ore perspective. we believe that as some policies play out on the property sector, that will mean more housing completions which will be positive for copper, but then that will shift into housing new starts which will be positive for steel. but overall, we expect the uptick in growth for china, strong growth in india, is going to bode well for the commodities that we produce. rishaad: mike, what you are doing at the moment essentially is perhaps what you have been terming future facing commodities. metals that will be needed in the renewable era, if you will. does that mean that after the selling of these two coal mines, does that indicate you are going
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to get out of the cold business in order to -- coal business in order to focus on the future facing side of things? mike: we have been very clear and consistent in recent years in terms of our strategy and how we think about the portfolio. we wanted portfolio leveraged to the big mega themes unfolding. that is population growth, increased standards of living, and of course the energy transition. now, taht's s -- that's seen as focus on growth and copper, nickel, higher quality iron ore to aid steelmakers. we've also been clear the hires -- the highest quality of coal for steelmakers will see upside because they are needed to help steelmakers get more efficiency and reduce the emissions intensity of their steelmaking processes. all of our effort in coal has been around concentrating our portfolio on only the best of the best, and the decision
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announced today is fully in line with that strategy. rishaad: but mike, surely oz minerals is not a tier one asset that you bought here. is this the challenge you have -- i am sure you will say it is -- it isn't, according to many. how do you then make your own operational efficiencies become ingrained in those of the acquired company? mike: so, on oz minerals, and i will come back more broadly about how i think about growth, but that is a good company run by good management. yes, there's value we believe we can bring to those assets through bhp's capabilities, but equally we want bhp to be able to learn from the great things they achieved. this will be about bringing together the best of both and creating something bigger. and it will unlock value both for the current off shareholders and bhp shareholders. now, i would note that we have a
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number of levers available for us in growth. the single most valuable is operational externs -- excellence and productivity. small increments of productivity improvement unlock quite substantial value. that is our first focus and the one most in our control. we're also already the world's largest holder of copper. second-largest endowment of nickel sulfites. hence we have a lot of effort underway on how we can unlock more of those resources more quickly through operational excellence and an increased focus on innovation. i also need to mention jensen and our growth pipeline. executing janssen stage one currently, studies on stage two. in these future facing commodities, we have got building momentum behind our growth efforts. it all starts with being a reliable, highly productive operator where we are getting most of the capital we already have deployed in the business.
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haslinda: mike, what other assets might you be looking for in the next 12 to 24 months? what acquisitions might be expected? mike: look, as i said, acquisitions are but one of the levers we have available to us. we have productivity in the existing business, organic growth, greenfield exploration, and early-stage entry, where we are getting on the ground floor with deposits found usually by smaller companies, where we are able to bring bhp's capabilities to bear on helping them develop those resources. we then have acquisitions, and acquisitions will only be pursued where the commodity strategy, the assets are the kind of assets bhp likes, and where we believe we can create greater value for bhp shareholders. we are being disciplined about it. it is the fifth of a number of levers we have available to us to grow value. haslinda: we are seeing rising political risks in ukraine. we are also seeing tensions in p
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eru. how are such developments shaping your investment decisions? mike: it is such an interesting time in the sector. right around the world there has been a marked uptick in the understanding of how important metals and minerals will be to the energy transition, let alone ongoing global prosperity. along with that has been an increased focus on the part of policymakers as well as capital markets on where these metals and minerals are going to come from, which companies they want to develop them. from a bhp perspective, our strong track record in creating value for all of our stakeholders, our operational excellence, our ability to work with governments, i think positions as well in the chase to supply more of the world demand for these commodities. but along with us, so in this more volatile world, we are seeing more policies being pursued. and we have some resource-rich
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nations pursuing policies that will be very supportive of opening up new mines and processing facilities. we look at the inflation reduction act in the u.s. as one example of that. the code of criminal strategy in canada -- the -- capital is global and we will pursue highest returns for lowest risks, and bhp is no different. in australian we are investing in more growth in western australia, south australia, where we have both good projects, but also stability and governments that are proactively seeking to facilitate more growth. rishaad: mi -- mike, last year's profit and dividend bonanza is a tough act to follow. but are the headwinds at the moment lessening, especially as we have the china reopen, something be touched upon at the start of the interview? but in mor detaile, what are you
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looking for if perhaps you come to talk to us again in six months time? mike: just to put the dividend in context, it is the fifth highest dividend we paid. so still pretty strong. in terms of the headwinds, the team has done a great job of containing the worst potential impacts of inflation. just like there was a bit of a lag on the way up, we expect there to bit of a lag on the way down. we have seen the inflation that was hitting some of our inputs already roll over and start to come down. but it is not something that will turn on a dime. it will take a little bit of time to work that out of the system. but we have held guidance, both near-term and medium-term, including on the cost front for our businesses. rishaad: but obviously cost is at the fore, as are software commodity prices. give us an outlook, say, the likes of copper, what are you looking at this year and the other products that you do mine. mike: of course it is such a
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difficult thing to predict over the short term, because there are so money factors coming to play. we expect copper will move into a slight oversupply in the coming years. but of course we are very constructive on copper over the long-term. iron ore, as i said earlier, we expect an uptick in chinese steel. it will be a question on the supply side. the reopening of china for australian coal is a credit to both governments, and going to bode well for the coal markets. rishaad: mike, always a pleasure. thank you so much for joining us. mike henry is the ceo and bhp. let's have a look at some of those first word news stories. at least three people killed is another payer of earthquakes shook turkiye near the syrian border. the government saying more than 200 people injured as buildings collapsed, the area still reeling from quakes earlier this month that killed around 41,000
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in turkiye and thousands more in syria. british prime minister rishi sunak lobbying conservative rebels to conserve a post-brexit trade deal in northern ireland. he held one-on-one meetings to explain the outline with the eu. northern ireland's ability to remain in the bloc's single market has been a thorny issue. bloomberg has learned ilion -- indian billionaire has -- adani earlier called off a plan to call off a coal plant. they halved revenue growth following the fallout from fraud allegations by the short seller hindenburg research. hong kong is planning to let retail investors trade digital tokens, taking a major step towards its goal of becoming a crypto hub.
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they did not specify which tokens would be allowed. instead, they said coins should be included in at least two acceptable investable indexes from independent providers. and that is your first word news. haslinda: still ahead on bloomberg markets: asia, former bank of japan executive director hideo hayakawa joins us to discuss his policy under the new governorship. exclusive interview later this hour. next, china seeks to convince the world it can broker peace in ukraine, as top diplomat wang yi prepares to visit moscow. this is bloomberg. ♪
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rishaad: president biden pledging more military aid to help ukraine fight back against russia. the defense department saying a $460 million package will include artillery and radar systems. while meeting president volodymyr zelenskyy, biden further promised sanctions on people and companies assisting the russian war effort. >> putin thought ukraine was weak, and the west was divided. as you know, mr. president, i said to you at the beginning, he's counting on us not sticking together. he was counting on the inability to keep nato united. he was counting on us not to be able to bring in others. rishaad: indeed, the chinese top diplomat is set to visit moscow after floating a fresh piece of proposal for ukraine. the chinese foreign minister speaking a short while ago on the ongoing conflict. asia government politics
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correspondent rebecca choong wilkins joining us. urging some to stop targeting ukraine today, taiwan tomorrow. that is one of the things emerging. rebecca: essentially trying to prevent this narrative that china's cozy relationship with russia, xi jinping's quote-unquote no limits relationship with putin, is prompting concerns that -- over china's ambitions in taiwan. it is precisely the fear europe and many western countries have developed, that this relationship essentially unveils china's strategic interest, and its willingness to go against the grain and take action there. haslinda: rebecca, talk to us about china's proposal of a peace deal. what are the chances of that succeeding? some say very little, but it
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could get the support of the global south countries. rebecca: indeed, that is the big question, is precisely who steps in to support china if this peace treaty, for example, comes as a united nations proposal. we've learned from sources that the proposal may include things like a cease fire, a call to c ease sending arms to ukraine. but we have had this quite robust response, for example, from germany's foreign minister saying that no peace proposal can be considered unless it includes the removal of russian troops from ukraine. the bigger picture here is china is working very hard to paint itself as a neutral mediator, as a broker of peace. essentially now trying to seek to rise above the fray. i think that argument is going to lack credibility with the u.s. of course, and with many european countries, even as some
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of this war fatigue sets in. the question is whether it can win support from its allies and partners in africa, and some of its partner nations in asia and southeast asia, to combat this notion of u.s. hegemony, as they put it. haslinda: the global south coming together wanting a bigger voice. rebecca choong wilkins, thank you so much for that. as we mark the first year milestone of the ukrainian war, it's good to do a check on how russian oil increasingly is flowing into china. in fact, with china's reopening there has been a lot of demand for russian oil, which is coming in cheap, as we have seen in the case of india as well. if you take a look at how it is flowing, the banks re-boosted by private refiners, but state owned processes are showing more interest. and we can only expect it to increase in. demand. rishaad: absolutely.
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surpassing the record we had in april of 2020. all of this as we get deep discounts taken place. much harder for them to be exporting via their insurance embargoes on those vessels. the west wanted to deprive the kremlin of the funds for its war. also wanted to keep a lid on global oil prices by restricting that production, or indeed, demand. a lot more on the way. we are checking markets. crude oil at the moment with brent under pressure by .9%. ♪
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rishaad: some companies making waves today, bhp off the lows of today after it saw a dividend cut in its profit decline,
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putting pressure on the australian share market. we are waiting for hsbc, 1% to the downside. we are going to be looking at fourth-quarter numbers in just over 90 minutes. we have a net increased -- semiconductor up 40%. it produces high-definition video signal processing chips and high signal transmission chips as well as transmitters. that debut on a tear. ♪
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rishaad: a glorious day at the moment, it looks like anyway, in tokyo. off to lunch there. the nikkei 225 dipping back a smidge.
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looking for clues on the next move by the federal reserve and the bank of japan as well. talking of which, the outgoing governor kuroda been taking questions in parliament, and says he sees inflation slowing down around the middle part of this year, saying labor demand and the impact of inflation is likely to push up wages, and the labor market is likely to tighten further after an influx of women and older people. also has the belief private sector funding has been increasing, and talking about exchange rates, but not in too much detail. pretty much unchanged, still holding onto recent weakness. there we go. that's the day's chart for the yen there. also looking into a bit of a selloff taking place by insurance companies with regards to japanese bonds. selling some of these super long bonds. you can see this record outflow taking place right at the end of that chart.
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haslinda: let's head back to the goldman sachs global macro conference in hong kong. annabelle droulers is standing by with our next guest, who was previously an official at the bank of japan. annabelle: that's right. hideo hayakawa is now senior fellow at the tokyo foundation for policy research. it is interesting about kuroda appearing in parliament because ueda will be speaking for the first time since his nomination, and this will give us the first clues into, not exactly if we will see policy changes, but when. so when can we expect that, do you think? hideo: [indiscernible] i expect he's going to try to change policy to some extend.
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he's also a very conscious guy. so probably he will not makes things hasty. so probably he's going to unwind this complicated easing very gradually. that's my understanding. annabelle: because he is an economist by training, which means he likes to see the details first. hideo: yes. the most important contribution he made during his tenure as policy board member as the invention of forward guidance. actually, 1999 when the bank of japan first introduced zero interest rate policy, bank of japan made a commitment that we will keep zero rate until the
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inflationary concern is wiped out. that was the start of forward guidance. annabelle: if ueda is someone who will keep for policy continuity for some time, there's an outside risk a building that perhaps kuroda could deliver another surprise for he steps down in march to ease that transition. do you think there is any likelihood of that happening? hideo: i heard many thinking that way, but i do not really think so. the probability kuroda makes a surprise will be very small. especially since march is a special period for japanese companies and markets. the big stock rise in march, would be big confusion. annabelle: also looking for any progress around sustained wage
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gains, which is key to the boj policy. a lot of the focus so far on nominal wage gains, but the real wages is perhaps a little more interesting, perhaps when you couple that with the weaker household spending. hideo: exactly. exactly. you look at consumer prices, it's over 44% year on year. the issue is sustainability of inflation. certainly some with wages. wages will come up some. around the middle of march. the boj meeting is the middle of march. making a bigger surprise in march, that is premature. annabelle: it does stick with easing policy settings for too long.
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there is the risk investors dump japanese stocks, risking japan's safe haven status. does that give you concern? hideo: i don't think so. summer, autumn this year, the u.s. fed makes a difficult and very hasty rise in the rate. whereas bank of japan sticks to the ke -- to keeping long-term rates low. it's depreciated the yen to the 150's. now it's come back. so i don't think it's that hasty. annabelle: communication style. [laughter] because we are going to get the first indication of ueda before
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parliament this week. we will see him pick up from where kuroda left off. will he be having his own path forward? hideo: communication is very important. i do not think kuroda-san's communication has been very bad the past 10 days, but his performance of the last few years has been very bad. especially with communication of the markets. when he first takes a position of policy board member, he speaks -- his comment on it makes him kind of a big -- he's shocked.
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whatever he said does not necessarily affect the market. but when he is a policy board member it really affects the rates. he is now a lot more cautious than before annabelle: i want to talk about ueda's personality. he was relatively unknown to the international community before his nomination. you told me you first met him in 1975. so what can you share with us about his personality, his thinking about monetary policy? hideo: i mentioned that is largest contribution is interjection of the notion of forward guidance. the emphasis on forward guidance. on the other hand, he does not
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necessarily believe the efficacy of easing. it is very effective so you don't have to worry about zero bound. also probably he -- if you want to use forward guidance, the most support and thing is how to know market participants interpret the central bank's commitment. the most natural way is looking at -- [indiscernible] annabelle: so is the target long? should we be looking at shorter 10 years? hideo: probably. the ideal monetary policy is
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going to be very low. together with pretty strong forward guidance, rather than the qe or ebita control. annabelle: all right. when you talk about kuroda's legacy for the boj, what do you think will be the most long-lasting? hideo: hmmm. that's pretty complicated. first of all, kuroda up-san' -- kuroda-san's contribution to japan overall is kind of position, especially at the beginning. people's mind was very dark. say, at the end of 2012. and after the global financial
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crisis, and also the earthquakes, and the political confusion and the democratic party government. so the people became very pessimistic. so the big experiment made by abe-san and kuroda-san is probably what sent a big shockwave. the people's mood became a lot brighter. that's good news. but unfortunately the mood has changed a lot. but the changes in the real economy is not that large. the market benefited, but growth rate is the same as before. inflation is kind of positive, and therefore when the time
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passes, it will become more frustrated. annabelle: thank you so much for your time. that was the former boj executive director hideo hayakawa. rishaad: good stuff there. hideo hayakawa there, former boj official. let's have a look at the first word news. president biden pledging more military aid to help ukraine fight back against russia. the defense department saying it $460 million package will include artillery and radar systems. this is while meeting president volodymyr zelenskyy on a surprise unannounced visit to kyiv. biden further promised to put sanctions on people and companies assisting the russian war effort. >> putin thought ukraine was weak, and the west was divided. as you know, mr. president, i said to you at the beginning, he's counting on us not sticking together. he was counting on an inability
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to keep nato united. he was counting on us not to be able to bring in others. rishaad: china laying out a fresh list of problems it has with how the u.s. uses its power. the official news agency is publishing a 4000 word article titled, u.s. hegemony and its perils. it blasts the u.s. and underscores how tensions have worsened over the suspected spy balloon incident as well as the war in ukraine. top chinese scientists outlined plans on how to get around chip sanctions imposed by washington. an article argues beijing should build a portfolio to govern next generation chipmaking. they say it would propel china's semiconductor ambitions and give at the cloud to push back against sanctions from the united states. and that is your first word news. haslinda: still to come, goto brings forward its profitability
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targets by a year, trying to win investors after a six he 4% stock slump since listing. the ceo joins us live next. keep it here with us next. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. -hey david connect with an advisor to create your personalized plan. -let's find the right investments for your goals okay, great. j.p. morgan wealth management.
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rishaad: this is bloomberg markets.
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having a look at indonesia's goto group because it has brought forward its profitability targets by a year. it joins other southeast asian tech giants in wooing investors to soon reverse losses. let's get to andre soelistyo who joins us from jakarta. how are you going to achieve this? andre: good morning. thank you for inviting me. so, yeah. a few days ago we brought forward the profitability guidelines. this is also the first time that we put a very specific target in terms of the metrics we want to optimize. in this case, a property to -- which means the target is to shore up the business as we generate internal cash growth. we are quite confident for a few reasons. first, our track record in the quarters after the ipo in terms
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of our profitability acceleration has been overperfor ming our guidance to the market. a lot of that comes with a lot of discipline and cost optimization, and most importantly, our focus in building product features and leveraging the vastness on the services payments to engage our customers better. while there's a lot of cost optimization in play, a lot of the -- we have the confidence we have been accelerating our guidance also stems from the project innovations we have been able to do the last few quarters and also in 2023 we're planning ahead as well. rishaad: you know, this is a difficult time to make such a prediction, given we have possibly a potential global recession, we have inflation,
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and plus in the e-commerce space, there are many new entrants, companies like tiktok shop. will you be able to reach that profitability goal without external financing? andre: yeah, i think that's a really good question. i think on competition first, we think that we have a very unique differentiation in the way that we do our platform offering. you mentioned an example of e-commerce competitors are enter ing. each has engaged in different ways. what we do is really focusing on building what's fueled by better experience from our deliveries. we built our delivery options that focuses on reliability and speed.
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we deliver faster than any other platform. we have our vastness on financial services that allows end-users to buy with multiple different options. so while there's actually competitors stemming in different areas, but because of our focus we have seen our user space is very resilient. and our market continues to be very strong. so i think we're seeing this as kind of the key strategy. haslinda: you talk about growth. how will you deploy your capital over the next two years? a-- next few years? are there market sectors you will be targeting? andre: again, it's to support the differentiated experience are users will enjoy being in
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our ecosystem. again, it focus on reliability, speed, inconvenience. in this nature, logistics is one area we are triple downing and really building both fulfillment and delivery that can actually make faster delivery cheaper. i know that sounds contradictory, but faster delivery cheaper is possible because of where we stand in terms of our use cases. we not only have e-commerce, but a very strong platform very hyper local. also our capabilities in fulfillment and delivery. the other thing we are going to invest in here, this is the year of fintech in goto. we've been experiencing with multiple customer lending products. pay later by the end of the month, pay later installments. this year we're going to expand
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that aggressively as well. haslinda: your investors to not seem to be buying the plan, despite plans to bring forward your breakeven targets. your stocks continue to slump, and they are down the last few days. what is it investors are missing out on? what are they not understanding in your growth story? andre: i think the markets are such that every investor is reserved in terms of picking which sector first, then which company they want to back. so a lot of this work, we do not expect that just announcing they will be changes, but by continued communication, a clear articulation of the strategy, and more importantly, every quarter showing the progress on
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the things that we do, will definitely build that confidence. there's also macro factors in play here. i do think that in this market, a lot of investors are waiting to see what interest rates will be. there's a lot of macro factors put into play which are not under our control. what we control is our execution, our clarity in terms of progression. haslinda: are you looking to deal any -- to do any deals? andre: deals, meaning, in what sense? haslinda: any tieups? andre: tieups? no. we're good. rishaad: very, very quickly, what about jobs? you have already made job cuts. can you say they will not be any further as you try to get to that profitability goal? andre: we did a major kind of
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realization back -- reorganization back in december that resulted in job cuts and stuff. that's due to the macroeconomic situation. we are not going to do something similar to that. having said that, the discipline in looking at our overall pnl, we're looking at every line item and thinking about it like immature business. -- like a mature business. looking at every line to see areas of improvement, where the organization structure is effective and efficient, whether we have too high cost -- a lot of those in place. haslinda: andre, thank you so much for that. andre soelistyo, goto group ceo. plenty more ahead.
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keep it here with us. this is bloomberg. ♪ ♪ at morgan stanley, we see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities and relentlessly working with you to make them real. ♪ because grit and vision working in lockstep ♪ puts you on the path to your full potential. ♪
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haslinda: let's do a check on those hong kong crypto stocks on the back of hong kong allowing retail trading in top crypto coins. a lack of details in terms of which crypto coins in particular. still, trading up by almost 11%.
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meitu up by 12.5%. this is a change from what singapore is adopting, but hong kong boosting its position as a crypto hub. let's take a look at china property stocks on the back of course china removing restrictions on land sales, trying to boost the sector. sino land up by .6%. plenty more ahead in the next hour of bloomberg markets: asia. stay with us. this is bloomberg. ♪
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♪ haslinda: it is almost 11 a.m. in singapore and shanghai. welcome to bloomberg markets: asia. i'm haslinda amin. rishaad: and i'm rishaad salamat
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and in hong kong. concerns about the federal reserve keeping interest rates higher for longer. outweighing optimism over china's recovery. president biden at pledging military support for ukraine and a lightning a visit to kyiv. a move that's been met by a degree of skepticism in the west. hsbc earnings where investors focused on dividends and buybacks and guidance on interest rates. haslinda: asia under pressure. perhaps investors are waking up to the idea of higher for longer. the fed may do 50 in march as suggested by the likes of bullard. benchmarks in asia, trending down half a percent. also malaysia, australia and new zealand under pressure. bucking the trend up 4/10 of 1%.
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in the fx space it has been above the dollar, inching upward, trading at six week highs. we are seeing some gains for asian currencies. australian dollar up by having percent. we had from the likes of the rba minutes, suggesting the rba did consider a 50 basis point hike and the offshore trading up by 2/10 of 1%. it is also about the bond story. yields have been trending upwards. we have 10 year yields trending up at the highest level this year. the highest since november and in asia, similar story. china 10 year yields, to have basis points, interesting to note that foreign investors have been pulling money from chinese bonds because of the continued easing in monetary policy that we are seeing in china. rishaad: ok. let's have a look at what is happening in thailand with the
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bangkok open. the stock exchange of thailand moving to the upside by about 1/10 of 1%. dollar making some big gains, half a percent as of late. best performer in asia. one stock in thailand is an ipo. it is called chase india and it is up 20% on its debut. it provides financial advisory services to companies and nonperforming debt management systems. it is restricted to china but certainly the ipo getting off to a good start. looking also with regards to india and seeing the start of the trading day there. 45 minutes thereabout. looking again at adani enterprises. we saw some nasty drops yesterday, but a couple actually are moving to the upside.
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ruby is less stable. 73 pesos for a dollar. haslinda: president biden has pledged military aid to help you can fight back against russia. the defense department says $460 million package will include artillery and radar systems. while meeting the president zelenskyy on unannounced visit to kyiv, biden promised sanctions of people and companies assisting the russian war effort. >> vladimir putin thought ukraine was weak and that the west was divided. as you know, mr. president, i said to you in the beginning, he is counting on us not staying together. he is counting on the inability to keep nato united. he was counting on us not to be able to bring in another. rishaad: china's top diplomat weighing in says in the coming days after floating a rush peace proposal for ukraine.
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china's foreign minister has been speaking about the war a short while ago and saying people should forget about that narrative of the ukraine it now, taiwan next. senior executive editor john liu joins us. let's start with this peace proposal. it has been met with a lot of skepticism in the west and also on top of that if the ask the question could they possibly be seen as a broker for peace here, i guess? john: skepticism is warranted. you can understand why people in the capitals of washington, brussels and paris would be suspicious. china has -- the united nations supported russia. china has rhetorically supported russia. they have echoed this narrative that it was nato's expansion that sparked the war in ukraine. and so now, for china to try to present itself as a neutral
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broker of peace, i thicket will be a hard sell for the europeans , for the united states. but i think the reason china is interested in presenting this peace plan is economically, china would benefit very much, as would many other countries, from the conflict stopping. so china i do think intrinsically wants to see that. but presenting this peace plan, present itself as a broker of peace is also helpful in the global south when it comes to countries in the developing world. so china is trying to do both of those things at the same time. haslinda: our where without support come from among global south economies, john? john: if you look at india, india has had a position when it comes to the war that is quite similar to china. even though those two powers themselves had some territorial conflicts along the border.
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if you look at in the developing world, africa, asia, latin america, countries that have suffered from higher food and energy crisis, there is a real desire among those places to see a cease-fire. a lasting peace in ukraine and the economic impacts will go away. thank you. bloomberg china senior editor john liu. haslinda: let's head back to the goldman sachs macro conference. annabelle is standing by with our next guest. annabelle: yes, that is right. this is a crisis that has gained a lot of attention among the world's global elite policymakers as something that can encompass the shocks we are seeing but i'm going to bring on our next guest. this is columbia university professor of history. thank you for joining us this
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morning. i wanted to actually start more with what we heard from john, because he was focusing on the tensions ever-growing between the u.s. and beijing. what is your key take away from this, in terms of what you see within the u.s. administration? we were discussing earlier the profound tension that exists within the biden administration on how to handle china. >> i think there is a deep divided there. as you see on the one hand as it were, signs of de-escalation as we saw on the june 20 meeting. a serious meeting between biden and xi jinping. we heard very little about what transpired, which is telling. the less you hear, the more as it were. on the other end of the spectrum the balloon incident where the americans clearly had the choice -- secretary emphasizing his remarks to the conference a few minutes ago. the americans have the choice to shoot it down, shoot it down early and say nothing. instead of coming to china, having conversations and allowing beijing's court.
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instead it became a huge political issue with the president referring to infringements of u.s. sovereignty and the state of the union. that's an escalation move and this sets up a deep divide. it reflects a deep divide on the american side and reverberates on the chinese side. they are managing difficult relationships. schizophrenia would be a strong word but there is clearly cognitive dissonance here. annabelle: then it with your background, professor of history, do you think that we've got to look back at some lessons perhaps even going back into the cold war era? >> i think that is when we wake up and smell the coffee, we realize that we are now in the business of managing a brinkmanship style situation as in the cold war. eyes wide open, we need to be focused precisely on this issue of how to handle tension. we need contact, secretary gates was forthright about this. at the lowest level possible
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between commanders so as to de-escalate incidents. we need a sustained dialogue and above all, we need passages discipline to it seems to be extraordinary that we have senior figures from the pentagon out in front of media cameras, openly talking about their feeling about the probability of a war over taiwan over the next short time frame. that kind of thing is not something that you can really permit, if you are in the business of managing what has to be understood as a kind of partnership. this is -- you know, these are not words which we usually take into our mouths given the ideological tension that is built up in this confrontation. but that is what it takes to manage something like this. a partnership. annabelle: you talk about message discipline. would you characterize the response we've had from china as being cohesive either? >> know, we are seeing two parties to a conflict, both of which are struggling to formulate a coherent position. the underlying problems should not be underestimated. we are seeing if not a hegemony
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shift, than a fundamental shift in the balance of power between china and the united states. an incumbent that is unwilling to give up positions established in the cold war. a rival driven by economic growth and its sheer size to a new historic role. that is difficult for policymakers in beijing and deceived to figure out where they stand. what does not help is the mutual interlocking of mixed messages and as it were, divided stories on both sides. it is not difficult to understand i think why the chinese tone has hardened again in light of what they must perceive as a gratuitous escalation over the spy balloon story. annabelle: the term poly crisis, it was you that brought it into our lexicon. something that can encapsulate issues from the pandemic and climate extremes. it has received pushback, so what would you say to the critics? >> the fundamental point here is
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not that there are many things happening at once. in previous moments in history many things have happened it wants. some of those things are power issues. the reassertion of violence as a major force in history, this is regular history. the point about a poly crisis is the ill assorted nature of the shocks. the fact that they consist of things like spy balloon's, pandemic, climate change, systemic financial instability. it's a very bad breakfast buffet in which the food is not as it were a cohesive offering of a certain cuisine, but really a kind of mix and match collection of forces interacting on the world economy. all at once in ways which are incredibly spectacular. you see it in any conversation between investment analysts. the usual fine tuning debates about interest rates. then someone will wander in and say that is the possibility of
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military escalation and there is an american general saying we could be facing wall the next two years. it is the sheer weirdness of these two things sitting side-by-side that really mark our current moment. this is something larry summers and i agree quite profoundly on. the desperate nests of these shots as it were. the lack of a single common narrative that characterizes the current moment. the term is as much anything indicative of our current situation that we do not have a single thread where we can easily say right now all of the tensions in the world economy are driving from this single cause. it does not characterize the situation. we have been blindsided by factors which for instance three years ago the world will turn starting in china in february and march 2020. conventional, normal, globalized lifestyles grinding to a halt.
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that was not in anyone's decision said, in anyone's risk spectrum and that i think is what poly crisis struggles to grasp. annabelle: all right, well adam, thank you for your time. professor of history at columbia university. rishaad has more ahead from the global goldman sachs macro conference. haslinda: fascinating conversation. annabelle with adam, professor of history at columbia university. something to alert you to, taiwan's president will meet with u.s. congressional delegation led by representative happening at 11 a.m. tuesday according to the time on presidential office. if the visit of course comes as u.s. and china relations remained tense after weeks of trading. recriminations over a spy balloon. the delegation consists of representatives. jonathan jackson. let's get to the first word news with paul allen in sydney. paul: thank you.
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at least three people have been killed. there's another pair of earthquakes shaking turkey near the syrian border. the government says more than 200 people were injured as buildings collapsed. the area is reeling from earlier this month when a quake killed 41,000 people in turkey. thousands more in syria. u.k. prime minister rishi sunak and conservative rebels are supporting a post-brexit trade deal with northern ireland. he held one-on-one meetings to explain the outline of a perspective agreement. northern ireland's ability to remain as been a thorny issue since britain left the eu three years ago. bloomberg has learned that indian billionaire -- adani power called off a plan to call off a cold plant. the group has had its revenue
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growth target as part of its cutback plan following the fallout by allegations of shortselling. hong kong is planning to let me tell investors traded digital tokens such as bitcoin, taking a major step toward its goal of becoming a crypto hub. the regulator did not specify which large-cap tokens will be allowed for individual investors. instead it says the coins should be included in at least two acceptable and investable indexes from independent providers. global news, 24 hours a day. on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm paul allen. this is bloomberg. haslinda: still ahead at this hour, stride ventures tells us more about india's venture debt landscape and how it became one of the key growth and enablers for stocks there. rishaad: plus bhp is hopeful that china will turn from a drag on its earnings to a driver this year. our interview with ceo mike henry coming up in just a moment. ♪
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rishaad: this is bloomberg markets. we are having a look at the world's biggest miner, bhp banking on the rebound for commodities. we talked to the ceo, mike henry, who shared his projections and is here following a summit in profits. >> we are optimistic about the outlook for china as well as underlying business performance but i will cut to that and a second. with respect to china we've seen it to policy shifts around zero covid and more progrowth policies being put in place for the property sector. that has been backed up by firm statements from the government there that are progrowth for the year and we are seeing green shoots come through since the start of this year. increased mobility figures, bank lending, improved business sentiment, property prices up in some cities.
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so that kind of reinforces the positive outlook that we have for the year ahead. which we expect to offset slowing growth in both the u.s. and europe. now the other cause for optimism is a strong underlying business performance. you can see that coming through in the recent half. production up among business divisions. another record in our iron or business, which is our biggest business and we have stretched our lead as the low cost operator. 12% has opened up between ourselves and the next test, which gives some sense for the way that we are navigating what is i high inflation environment. focus on operational excellence in good standing will give us momentum moving into the next half. haslinda: give us a sense of how that may impact demand for bhp commodities where we have seen the biggest growth. mike: we are forecasting a stronger growth in both china and india. the growth offsetting weaker
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growth in the u.s. and europe. it is dependent, so steel, big game is all about what is happening in china, at least seabourn iron or perspective. we both leave some of the policies and the property sector -- additionally that will mean more housing completions, which will be positive for copper. that will shift into a housing use, which will be positive for steel. commodities over all, we expect that the uptick in a growth in china, strong growth in india will do well for the commodities that we produce. rishaad: mike, essentially what you have been turning future facing commodities, metals and renewable if you will. does that mean that after the selling of these coal mines,
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does that indicate that you're going to get out of the coal business to concentrate on that future facing side of things? mike: we have been very clear and consistent over recent years in terms of strategy and how we think about our portfolio. we want a portfolio that is leveraged to the big themes unfolding. population growth, increased standards of living. and of course, the energy transition. now, that is seeing focus on growth in copper, nickel, more sustainable farming. iron ore to aid steelmakers in their efforts. the highest quality of coal for steelmaking will see upsides in a faster decarbonizing world because they are needed to help steelmakers get greater phosphorus efficiency and reduce emissions intensity of steelmaking. all of our effort in coal has been around concentrating around only the best of the best and
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the decision today to pursue the investment of these minds is in line with that strategy. haslinda: that was mike henry of bhp. we have breaking news for you. jp's letting go of 30 investment bankers in the asian pacific region this weekend according to people familiar with the matter. a majority of them are based in greater china as deal flows in the biggest growth market in the region struggles to rebound let's get more on this historic. kathy chan is joining us. tell us about these cuts and how significant they are? >> hi. the cut is actually probably one of the biggest we are seeing in the china region. most of them are based in hong kong. china has slumped almost 90% last year and we have not seen
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although we are approaching first quarter. under pressure, under pressure to cut people. especially globally, they are also cutting. so this is kind of unprecedented in terms of the shock. the actual number is not that big. it is less than 5% of the total headcount. rishaad: what prompted it and what level of bank are we talking about? cathy: well, we are talking about the low md levels. there are a couple mds leaving earlier this year. this is mostly affecting the direct level below them. mainly global cutting, but you talk about china and u.s. tensions, some people would probably say that -- flows and
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global cost-cutting. rishaad: our guest cathy chan with that report about j.p. morgan cutting jobs in the asia-pacific. up more on that and a full market check on the way. this is bloomberg. ♪
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haslinda: let's take a look at some of those north asian benchmarks. the hang seng under pressure, down about 1%. led by tech. bear in mind, it was up by a tense of 1% yesterday. shanghai currently flat at 32.98. we are taking a look at some of those movers, in particular lawn tm semi conductors. this has to do with news out of hong kong. it's allowing investors to trade
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in cryptocurrencies currently some conductors surging by a massive 40%. losses for and hsbc which is due out with earnings later today. still to come, and updates on the disappearance of big-name chinese bankers and even state lenders who had no idea that he had vanished. more on that later on the show. keep it here with us. this is bloomberg. ♪ i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles.
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it will release your fat and it will release you. rishaad: eight degrees celsius there in shanghai. the temperature in the market fairly tepid. the attorneys equities flattening. the gain line, fluctuating
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between gains and losses. some parts of the market are doing well, including the property side of things. beijing is launching a pilot program for listed private equity investment funds, all part of an effort to get this beleaguered property industry up and running again. it includes residential and commercial property as well. shanghai comp is up 0.1%. it tepid session. of course, this is of the back of the monday session where we had stocks jumping the most in the month down to optimism about the economic recovery. well, we are getting the japanese back on their desks in tokyo, has. haslinda: talking about tepid session, it is a tepid session for the rest of asia as investors weigh the prospects of policies to team inflation. the nikkei 225 is down 0.1%.
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we had governor kuroda saying that he sees inflation slowing around mid-year this year. that was in response to questions to parliament. the hang seng index is down 1%. of course it was amongst the biggest gainers yesterday. then we have the kospi currently trading flat. bloomberg has learned that the disappearance of chinese banker bao fan has come as a surprise to even some of his estate owned lenders. let's get more from bloomberg's shanghai bureau chief charlie zhu. the disappearance of the banker has prompted several state run banks with exposure to his company to ask for more information about the situation. could you share a bit more on this? charlie: yes. we are hearing from people familiar with the matter that several state lenders, including development bank, communications bank and also china merchants can reaching out to china
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renaissance for more clarity of the situation since the announcement, since the mysterious disappearance of the baker. there are also reaching out to your government contracts for more information about him and about the company. also, we heard that china renaissance capital has been in touch with those banks but has not received any request make immediate repayment of the loans . the banks have a total of 2.3 billion yuan exposure to the company and they need to assess the risk of exposure and that is basically what we are hearing. rishaad: charlie, what does this tell us about the latest of china's regulation and its environment, and xi jinping's crackdown on corruption in financial services? charlie: it just shows how opaque the country process regulatory and business environmental system is.
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as you mentioned, the banks themselves are backed by the state, they are supposed to have a lot of access to information like this. but everybody seems to be left in the dark. and if you remember last thursday when the company said it had lost touch with the banker bao fan, investors reacted by dumping shares and sending stock prices down nearly 30% the next day. in china, when a company says it has lost touch with one of its executives, that usually means the official, the executive is assisting in a graft probe or is implicated in a scandal, things like that. so in this situation, we are not sure what, although we did hear from a person familiar with the matter that he heard from his family that he is assisting in april.
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also at this stage, it is unclear whether this marks any escalation of xi jinping's corruption campaign in the financial industry. if you still remember, dozens of senior executives and officials have in probed and -- have been arrested in recent years amid the crackdown, including a few senior executives from the banking industry. bao fan is a high profile name, a top worker for many to -- broker for tech deals and raising money for a lot of chinese big-tech companies. so everybody is watching this very closely. rishaad: thank you so much for that, charlie zhu, over bureau chief in shanghai. let's have a look at an event taking place in about 26 minutes from now, it is hsbc reporting earnings. it will be focused on what they're telling us about net interest income, as well as
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their outlook for the chinese real estate market. that's good to our finance reporter denise with us. a bit more about what we should be looking for here. denise: this is hsbc's new cfo, this is his first result briefing, so i think investors and analysts will be assessing him. in addition, i think people are looking forward to the special dividend, any guidance regarding the dividend will be washed. people will be watching for -- rishaad: what they will be using the money for basically. denise: what the payout will be and how soon. they will also be looking for any guidance around provisions. the chinese real estate sector has been a drag on earnings as you pointed out. they gave billion in provisions last quarter.
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we have seen ceos seem to have reached a trough point. people will be watching to see whether hsbc will also guide towards the haslinda: worst being over. you talk about drugs, what kind of potential drugs might we see in the earnings? denise: clearly the provisions is the key one. or the other thing that people will be watching for is cost. hsbc is against shareholder, ping an, have pointed out that costs are too high. costs overshoot, will they be on target? that is something we will be watching out for. also, if net interest income by any chance comes under estimates, that is also something people will be looking out for. i think those are the main things. haslinda: bloomberg's finance reporter, denise wee thank you. we will be speaking exclusively with hsbc's ceo later about their earnings performance and
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shifting focus to asia. catch that interview at 1:40 p.m. in hong kong, and that is happening only in bloomberg. rishaad: of course you can also turn to your bloomberg for more on this running commentary. . it will be on tliv , that is on the bloomberg terminal. . get instant analysis from our expert editors. moving things along and looking at what has been making the first word news, we get over to paul allen in sydney. paul: thanks. president biden has pledged more military aid to help ukraine fight back against russia. the defense department says a $460 million package will be going through. mr. biden also promised further sanctions on people and companies assisting the russian war effort. >> putin thought ukraine was weak, and the west was divided. as you know, mr. president, i
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said to you in the beginning, he is counting on us not sticking together. he was counting on the ability to keep nadel united -- nato united, counting on us not to be able to bring in others. paul: china has laid out a fresh list of problems it has with the way the u.s. uses its power. the official state news agency published an article titled "u.s. hegemony and its perils," that blasts u.s. policy and its actions and how tensions have worsened over the suspected spy balloon incident, and the war in ukraine. jp morgan is said to be let go of 30 investment bankers in the asia-pacific this week, the majority based in china. sources tell bloomberg the cuts are the biggest seen in years, to the makeup less than 5% of the investment banking headcount in the region. we are told the decision comes with deal flows, and the bank process biggest growth market struggling to rebound. this country is invoking
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some rules to force the country process power plants to operate at capacity. it is trying to avoid blackouts this summer. summer stations operating on imported coal will be asked to run at full capacity to ease the burden on domestic power supplies. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. rishaad: as we head now over to the india open, we are about seven minutes away from that. let's have a look at adani -related stocks in premarket. the cash market starts in six minutes. we are looking here at the moment at one part of his empire. they have now decided against bidding for a steak in a -- bidding for a stake in an electricity company. this is against the backdrop of the business looking to preserve
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cash after the criticism from the u.s. short-seller in the shape of hindenburg research. we will have more on this at the cash open for these stocks. this is bloomberg. haslinda: that's right. still to come, we will explore india's venture landscape with stride ventures, the latest trends and emergent sectors in that space. this is bloomberg.
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rishaad: there we go, that is mumbai, as we head into the cash market. three minutes for that. let's have a look at stride ventures. it has released its india venture debt report that highlights the potential of b2b replacing financial-technology is the most attractive center. venture debt is primarily a loan that is offered to early-stage, growth-stage and late-stage companies. let's join apoorva sharma, stride ventures funder. thanks for joining us. give a sense of what you do, and what the market is like. apoorva: sure, thank you so much for having me. venture debt is essentially lending to growth stage companies marked by -- backed by
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institutional investors. all of this helps in reducing or preventing dilution for the founders. stride has been are the most active venture lending players. we have sanctioned more than $114 million across our firms, and in india, the market is about $800 million. so in 2022, an annual venture debt employment of about $800 million, which is a 50% jump from the last year. founders in vc's are now more likely than ever to absolving venture debt in the ecosystem. rishaad: what about equity capital. there has been a shortage of it. how does that change the game for players like yourself? apoorva: definitely, there has
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been sentiment about vc equities muted. it results in a lot of late-stage companies trying to substitute things some of that with debt. of course at the same time, we need to tread carefully. we are cautiously optimistic. while we remain very active, we know that in terms of dealing momentum, but were still very careful. if you look at, venture debt in 2021 it was about 514 million dollars. it is currently $36 billion of the same year so about 3% of the venture-capital system. venture-capital in last year saw a 20% dip, but venture debt still grew 50% and reached $800 million. some part of venture-capital requirement is still being
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substituted with debt. this year we expect the first three quarters remain muted in terms of vc sentiment. volume of debt has increased again, but i am not too sure how the jump will -- without the jumping 2021 will remain the same this calendar year. haslinda: it really is about valuation, which has taken a beating. i am just wondering how do you protect your money? apoorva: venture debt is a self-liquidating asset class. there is a coupon bearing loan that has a repayment schedule, of say 18-24 months, and it keeps advertising. through that period it is augmented with. . components that are liquidity call options so when the valuation takes a beating there is a fair chance that will make some money. but even if you don't make any money on the warrant because the valuation upside is not there,
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you still make the debt roi. haslinda: how much money do you hope to raising 2023 can it overtake what you race last year? apoorva: it will probably be the same as last year. we don't anticipate deployment superseding the last year because, as i said, it has to be supported by some momentum from the venture-capital equities side. rishaad: so, when you look at the landscape how is it evolving? tell me about what the industry groups are that you are working with most closely, and some of the more exciting deals you are involved with. apoorva: sure. venture debt is an asset class has gained a lot of momentum in india within the last five years. if you look at 2019 and 2022, it grew by 2.6x the venture debt deployment. it is nearing close to $1
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billion. there are 4-5 venture debt players in the ecosystem and more coming in, even global players, coming in with a higher check size. there is a lot of education for founders to augment some bit of their dirt in their capital structure -- some bit of your debt in their capital structure. both sides have to go for the venture debt. in terms of sectors, b2b, ev will remain behind this year. there have recently been digital trending guidelines. a lot of the companies in the financial-technology sector, whether it is buy-now, pay-later, credit cards, or even on balance sheet lending, along with core lending with other partners, they are just trying to understand the integrity's of
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the regulation. going slightly slowly to make sure they are not breaching any of those. b2b e-commerce has a lot of inherent working capital requirement and has seen a lot of growth in the last two years. so b2b, consumer and ev can be very exciting sectors, from the growth perspective. haslinda: given expectations of regrets were done what are the expectations for b2b? apoorva: in india we feel that domestic venture-capital players are doing a good job. but late-stage and blade growth-stage companies are finding it difficult to raise ticket sizes of more than 30 million dollars because they are heavily dependent on international sources of capital. we definitely see a challenge for growth in late-stage growth companies. also i think in 2021 there was a lot of valuation spikes in many of these companies and that is
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not necessarily good for these companies, because at this point they are probably staring at her down grab, which seems inevitable. -- staring at a down grab, which seems to be inevitable. they have to cope with that because it is important to raise capital at the valuation they are getting. early-stage growth is robust in india. haslinda: thank you so much for your insights today, apoorva sharma stride ventures. india has been trading a couple of moments. the sensex in positive territory in the first few minutes of trade, which is a reporter from the rest of asia, under pressure on the backs of expectations of a more aggressive fed. the sensex is up 0.1%. the bank index is down 0.3%. adani shares here. adani group shares, mixed picture. adani ports currently trading up. . but pressure on adani transmission, down 5%, along
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with adani total gas, also down by 5%. gautam adani decided against bidding for a stake against an electricity straighter, according to people familiar with -- electricity trader, according to people familiar with the matter. rishaad: enter reiterate, we have the adani group of stoxx, total market value has fallen below 100 billion dollars, that is the headline crossing the terminal. we are watching this group of companies, and we are watching them closely. this is bloomberg. ♪
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haslinda: canada's trade minister says relations with china are multifaceted and will involve both collaboration, and standing up for canadian values. i asked her how tensions over the suspected spy balloon incident and differences over the were in ukraine are affecting doing business with their third biggest trading partner. >> diversification is a very important part which is why i am here in singapore with our canada trade commission. but in a relationship with china, it is multifaceted. we will stand up for the values
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that are important to canadians. values of rules: trade, values of democracy, values of human rights. but at the same time, we can collaborate on areas like climate change. you saw that in cop15 in canada last year. it was china's presidency, they could not have it, so we had it in canada. being able to collaborate in areas like fighting climate is what we're going to do. but it is a multifaceted relationship and it is one that canada takes seriously. haslinda: will such incidents accelerate re-showroom in countries like canada, mexico and the u.s.? what is your own assessment and what are you seeing and hearing from companies? minister ng: companies certainly experienced the shocks of supply chain disruptions throughout the pandemic. some of it is working itself out. but canadian companies it is looking to grow and diversify into regions like this one here in the indo-pacific. in singapore have 175, is an
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organizations who are here to launch our mission and they're looking for markets to be able to grow in, collaborations with those where he had trade agreements, and to continue to pursue those opportunities. . i am very excited because in singapore we have the canadian trade gateway that is greater access this very dynamic region. what companies are looking for, like the in the rentable i had yesterday, are the ability for us as a government to bring them together and to find opportunities and convene those opportunities for them, particularly for small to medium-size businesses. in canada i am the trade minister but also the small business minister, so attracting investment from the indo-pacific region to canada -- >> what areas in particular, digital, for instance? minister ng: absolutely digital. absolutely all the sectors that are important green growth that you are seeing in canada.
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a real investment in our battery ecosystem. we have strong, critical minerals in canada that will be a very important part of what the future of our green economy is going to be. we have aerospace. we have digital in the region. we have a dynamic number of clean tech companies that, if you look at sustainable mining, you have water solutions, cleaning solutions that are a part of that particular value chain. i think canadian companies and innovation in particular are really contributing to the kind of value chain growth. rishaad: canadian minister of international trade mary ng , speaking with us a little bit early on. let's look at the markets. five minutes away from earnings from hsbc. we are looking at the stock, under a bit of pressure today, but we will be looking out for any exposure to the real estate side of things. any provisions. having a look at u.k. particularly as well. seems there has been movement on the dividend.
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the stock is yielding 2.4%, but let's not forget the stock has risen since october by 50%. so there you have it. numbers are out in 4.5 minutes. haslinda: well, expect them to benefit from the reopening china story. to turn to bloomberg for more of go to tliv for more on this. there is also viscous interview with the hsbc ceo. that is it for "bloomberg markets: asia." "bloomberg middle east is next. i heard about the payroll tax refund that allowed us to keep the people that have been here taking care of us. learn more at go. go air that runs factory. go sensors and software. go find leaks. go fix-em. emerson technology detects compressed air leaks to save manufacturers, like colgate,
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