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tv   Bloomberg Daybreak Asia  Bloomberg  June 13, 2021 7:00pm-9:00pm EDT

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>> welcome to "daybreak: asia." >> we are counting down to asia's market open. >> now, our top stories this hour, g-7 nations look to forge united france with how to handle beijing. joe biden takes a hawkish stance while others swear the group will be seen as anti-china.
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bitcoin spikes after elon musk says tesla will resume transactions using the digital token. plus, shiba drops two board members after the selection process was tainted. haidi: a quiet start to the trading week. sophie: looking at a chart, we have futures mixed well e-minis slightly higher this morning -- while e-minis slightly higher this morning. indian inflation headlines, cpi expected to stay 5%. the rbis is unlikely to turn hawkish given that we have higher food and fuel prices driving inflationary pressures.
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we saw spreads from up even more , reflecting the outlook by tightening supplies. -- outlook of tightening supplies. the boe bill eventually turn hawkish. as for the fed, jp morgan seeing a dovish stance and that has boosted their forecast. jp morgan still saying they anticipate a. from the fed -- a pivot from the fed. kathleen: thank you so much. g-7 leaders debated how strongly to respond to china's effort to influence around the world. president biden and by minister johnson took a hawkish stance while other leaders were wary of
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the risk of the group being seen as an anti-china block. the leaders settled on modest condemnation that included commitment to d carbon icing -- decarbonzing the energy sector. our deputy managing editor has more. joe biden's task on turning the page in the trump air does not seem to be the hard-won as much as uniting the g7 around an anti-china goal. how well did he succeed? >> that is true and it seems like diplomacy in general was the big winner and you can pass some of the details and think that joe biden did not get everything he wanted, he got some of the things he wanted and he said that he was pretty happy with the way things went down. all in all, probably seen as at
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least a moderate win for biden. turning a page from the trump era in the first g7 meeting in two years. trash talking meetings on twitter afterwards, that is gone now. fairly harshly worded about a chinese and russian behavior. investigating the virus' origins, that is something the biden administration has pressed increasingly. i think they come away thinking they have a win here. >> we now look forward to joe biden's meeting with putin on wednesday. we have heard ahead of that, managing expectations. ros: i think one thing we are
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not expecting on wednesday would be a side-by-side press conference with joe biden and putin. we remember president trump and president putin side by hide -- side-by-side in 2018. both have indicated it could be a frosty affair, relations are at a low point. joe biden agrees with putin about that. he is expected to raise at some of the cyberattacks on u.s. embassy, the meat industry, yet he has also spoken about areas for cooperation. we did hear from the secretary of state, don't expect a light switch moment, but the process for a more stable relationship between washington and moscow. president putin's comment on friday that there will not be any impulse-based moments. i think he was talking in
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general, not about the meeting. joe biden is totally different from trump and the expectations are that he will be a stable presence in this meeting as well. haidi: of course, world leaders also made a pledge to get to that one billion shot vaccine donation, providing that. they also vow to intensify efforts to get 60% of the global population vaccinated. >> i think you are going to see straightforward dealing with china and we are not looking -- as i have told xi jinping myself -- i'm not looking for conflict. where we cooperate, we cooperate. i think there is plenty of action on china and there is always something that i'm sure my colleagues think they can improve, but i'm satisfied.
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haidi: g-7 countries have promised 600 million new doses, the u.s. and u.k. committing most after previously holding their supply. to get to that one billion, they have done some backdating accounting for pledges. it has been criticized as not being enough and not quickly enough. >> when we talked about trying to vaccinate the entire world, we need to get all hands on deck still and there is a large portion of people who are arguing that we need to ease some of the intellectual property rights to allow developing countries to manufacture vaccines on their own to protect their people. what we are seeing out of the g7 is a little bit of a backdating but still a pledge to get closer to that one billion doses of
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vaccine, the u.s. saying they are going to provide 500 million, the u.k. stepping up with 100 million, also canada, which has struggled to get any vaccine itself, saying they are going to share 13 million doses. the numbers are still low when you think about trying to reach the entire world but we are making some progress. kathleen: if i ask you about the lab leak hypothesis, what the president set about it, this is something the mainstream be rejected for a long time, it has come back and focus. let's listen to what joe biden had to say. >> i have not reached a conclusion because our intelligence community is not certain yet. whether or not this was a consequence from the marketplace of bat and interfacing with animals and the environment that caused this covid-19 or whether it was an experiment gone awry
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in a laboratory, it is important to know the answer to that. >> we know they gain a function research is conducted around the world, the idea is there was some accident at a lab that somehow may have occurred in wuhan, that is what the -- that is what got this virus going. is the president giving some credence to that view by underscoring that we need to have more intelligence? michele: what has happened in this circumstance is we don't have evidence. it is the absence of evidence that is starting to make people like president biden, other scientists step up and say, we don't actually have any smoking gun. when we look at the evolution of the virus, we don't see any sign that there was gain of function research done in order to create this particular virus. it does look more like it was a natural evolution, but the fact
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that the chinese had been uncooperative in the process has started to make scientists and politicians more concerned about where this might have come from. what president biden is saying is we need to get to the bottom of it, we need to know where the survivors came from, and he and others in the g7 and other researchers, scientists, leaders are saying we need to go when there and figure out what was going on with this virus, come what may, we need to know the answer. haidi: we heard from boris johnson that there could be a delay to opening up an easing of restrictions in the u.k. michele: the u.k. has really struggled. they have been unbelievably hit. the b117 variant emerged first in the u.k., and they got knocked down really hard, locked down the entire country. now the delta variant that
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emerged in india is coming through in the u.k. and the residence, the citizens have been waiting to get back into their regular lives, two steps forward one step back. this delta variant is very very lint -- is very virulent and they want to make sure that they get it under control, that they vaccinate as much as they can and they don't have to grapple with this virus. it is a concern for the rest of the world where the variant may be going. kathleen: thank you so much. still ahead, we hear from anthony pratt about green technology and his hopes for the family business. first, we look ahead to the busy week on the economic front and the impact of your central-bank decisions with vishnu varathan next. this is bloomberg. ♪
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>> this is "daybreak: asia." netanyahu's run as prime minister is over. the opposition alliance has been approved, which included arab party. -- an arab party. netanyahu vowed to return to lead the country. the turkish president says his meeting with president joe biden should focus on ways to cooperate, not focus on past risks. there meeting is expected to
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discuss u.s. refusal to sell missiles to ankara and turkey to suspension from the fighter program. erdogan said it saddens turkey that it labeled the killings of -- as genocide. beijing's ambassador to vienna said in a tweet that washington should move to the move sanctions against the islamic republic. the ambassador also said world powers should take steps to avoid a repeat of the u.s. exit from the agreement three years ago. before leaving the u.k. for brussels, president biden and jill biden accepted an invitation to tear with queen elizabeth. joe biden is a fifth u.s. president to be welcome to windsor castle. the queen hosted g7 leaders together during the summit.
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south africa's president says the country will dispose of 2 million johnson & johnson vaccines, it follows a ruling that ingredients for those doses may have been contaminated. the move marks a setback for south africa as a third wave of infections picks up. the president says africa's largest drug maker is set to begin production of new vaccines by midweek. 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. this is bloomberg. >> it is a busy week ahead for central banks globally. the federal reserve, ecb, inc. of japan are among the central banks -- bank of japan are among the central banks. joining us for more now is vishnu varathan.
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i want to start with the fed, against the backdrop of soleimani other countries, but emerging markets because people have been warning world becks for a long time, whatever signals the fed sends -- and this is going to be a big meeting because of inflation reading some expectation they might signal a sooner consideration of reducing stimulus. what is that going to mean for other central banks around the world? vishnu: it says a lot. exactly what comes down to two things. i think markets are watching for two things in particular. one is whether there are any incremental shifts because we recall the last dot plot was reassuring and the fed was going to hold rates through 2023. whether there is any shift in that they bring through
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cognizance or idea and clarity on what to expect. the other point is markets are worried about taper first because it will be well before any adjustments that taper will come through. whether the fed transitions to talking about talking about taper comes through is going to be the big things markets watch for. i think they're starting point is it is too early, the fed will not mention it, and they are still happy to look through the rise in inflation, passing it off is transitory. >> i don't know if i would put a 100% bet on that. you have an interesting analysis of how the bank of japan has to deal with the transition that the other two big three central banks go.
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how do you chart that course? vishnu: i think the irony is that despite being cutting edge in its policy, the boj, they have done it first, but despite all of this, they are hamstrung by what the fed does. if the fed is seen to be more dovish than the boj, then immediately you get the frustration of a stronger yen at the boj has to deal with. this is why the boj will have to pull beyond tangible actions. they have to come across the markets and say, we are going to be more diverse than the fed and we have the chops to prove it. i think every meeting from here is going to be a measurement of how much more dovish the boj is
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dan the fed and why -- is than the fed. all of us are try to figure out what it means in terms of parameters and that is the boj's big challenge. the ecb has done its part, despite lifting their forecast, saying, we are not where the u.s. is. they said, we are going to like the fed in terms of normalization. now the ball is in the boj sport. -- boj's court. >> when it comes to the inflation that we see, should the ecb doing more than just a job turning that we hear from authorities and when are we going to start seeing the pass-through goalie -- globally? vishnu: that is something everyone is watching, not just
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pboc. it is of some concern that a sector of the world is having record high inflation and that is where the word is. the silver lining is the pass-through between inflation, and this has to do with the upstream inflationary pressures down to the manufacturing component, is already subdued from the first pass. beyond that, we know that going to the cpi is subdued even further and historically, we can see that incrementally, the pass-through from manufactory -- manufacturing inflation to global inflation has diminished even more and this partly has to do with china's productivity gains and profit margins allowing for some absorption. this is where we can take some comfort, but no complacency. >> great to have you. you can get a roundup up of the
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stories you need to know in today's edition of daybreak. go to daybreak under terminal -- on your terminal. this is bloomberg. ♪
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>> one stock we will be watching, toshiba says it will drop two directors from its board, they demand accountability after a probe showed unfair practices. the company is slated to hold a press conference later in japan. our asia technology reporter joins us now. what is the latest? what are we expecting to hear in this press conference? >> what we know right now is
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toshiba will not put out the names of its current directors for another term and they will not reappoint executive officers . there is no word about the chairman of the board who seems to be in the crosshairs. while it seems like a step in the right direction, it is quite short given how damning the details are. the advisory firm recommended a vote against all five board members following the probe. haidi: what does this say about the environment activist investors face in japan? >> what is interesting about the report, even the current prime minister, who at the time was
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the chief cabinet secretary, met with the toshiba ceo and other executives and expressed unconditional support for taking aggressive action to use the foreign trade to get shareholders off toshiba's back. suga in the japanese trade minister have denied being involved. it certainly paints a picture in a country -- it strengthens the impression that when it comes to politically connected companies like toshiba, all bets are off and shareholders may not find themselves getting a fair shake. haidi: what comes next? >> we have a print font since --
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we have a press conference coming up where the company will respond to allegations, but the real showdown will be on june 25 when they were hold a general shareholder meeting and that should be a major development for the company. >> thank you. now we are going to get a quick check on the business flash headlines. a sam song says it has yet to decide whether to spend spend -- whether to suspend its latest phone. a report has been deleted. sampson's phone is slated to release letter this year. apple will stop requiring customers to wear masks some u.s. stores. employees have been told that changes could begin as early as next tuesday while staff will keep wearing them. starbucks, walmart, and costco have relaxed their mask mandates. next, piquant jumps after elon
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musk says tesla will resume transactions with the cryptocurrency. more on that next. this is bloomberg. ♪ look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds.
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>> first day of the trading week, let's go back to sophie with a look at the markets. sophie: looking at muted moves across markets given that we have a stray there, china, hong kong applying qe stocks trading slightly higher. nikkei futures in singapore in the green. s&p e-minis changes lightly to the upside. we saw moves last week and treasuries which had a 10 year yield fault was a three month low on thursday.
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we see common bond markets on benchmark treasuries dropping to a low, the longest stretch of weekly declines since july. switching up the chart, it is quiet on the equity front with measures of expected vol in japan and india headed back to pre-pandemic lows with little on the data docketed that will likely drive big moves. haidi: let's talk about bitcoin again. the world's largest cryptocurrency jumping as much as 9% after the latest tweet from elon musk. el salvador becoming the first country to adopt bitcoin as legal currency. let's start with elon musk. he addressed environmental concerns. investors just ran with it. >> if we trot -- if we drop into
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the bloomberg, even though bitcoin enthusiasts new elon musk is something of a crater, his latest weeds show he can still move up to higher in a big way. bitcoin jumped above 39,000 after elon musk said test i would resume transactions with the digital currency. when there is confirmation of reasonable, at least 50% clean energy usage by miners. a few weeks ago, it was his criticism of bitcoin, what he called insane energy usage, that really rocked the market. elon musk also reiterated the electric car makers sold 10% of its bitcoin holdings, so many thought that was likely the case. he said he did this to confirm the token's liquidity. if you look at the recent chart of bitcoin, it drops, losing almost half of its value, during a series of tweets by elon musk
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about the energy issue and some question whether he had sold into or before that decline. he is stating he only sold a small amount to check whether it was easy to do so to sell in a high-volume situation. we should point out that his latest tweet was a reply to a telegraph which ported a fund manager as saying elon musk's relisten to -- recent tweets should have fronted an investigation into the fcc. email on musk -- elon musk put bitcoin on a wild ride. he also alienated many in the crypto space by appearing to support dogecoin, the digital coin with a dog on its face that was created as a joke, but has recently surged in price, although not so much this week. >> el salvador is a country up about 6.5 million people.
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nevertheless, it has adopted bitcoin as legal tender, renewing debate about it replacing the dollar. su: it is the first country to do so and bloomberg reported late last week that every economic agent in el salvador must now, according to new legislation, accept bitcoin as payment by whoever acquires a good or service. that is according to a draft of the bill. the u.s. dollar will still be used as reference currency. but no other country has done this, so it does raise the question, if at some point in the future, the dollar could be replaced by bitcoin or some other cryptocurrency. you go to the most recent chart, look at the past three years of bitcoin, its volatility seems to have increased with each year
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and in 2021, it has increased with each month and that has given pause to many portfolio investors, even though bloomberg has shown charts that show even 1% exposure to bitcoin this year would have exponentially increased returns for portfolio managers. the volatility impacts their shop ratios and it has caused many to think two or three times before going all in on the cryptos. if you look at the other alternatives, whether it is some of the newer coins, they have also swung wildly and disappears to be the new normal, -- and this appears to be the new normal. >> thank you so much, joining us in new york. let's get to vonnie quinn. vonnie: boris johnson has hinted he will end the restrictions but
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perhaps not yet. this as cases of the delta variant surge. officials say they will study the latest data before making an announcement and that will come later monday. the pandemic rules were to be lifted june 21. johnson spoke to the reporters. >> the roadmap was always cautious, but irreversible. in order to have an irreversible roadmap, you have to be cautious and we will be spelling out what we will be doing. i'm a fed you will have to wait until monday. -- i am afraid you will have to wait until monday. vonnie: joe biden says he is not looking for conflict with china and dissatisfied with the stand the g7 countries have taken. however, it omitted any reference to china on a section on forced labor practices. it also called for a study into
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the origins of the coronavirus pandemic. the g7 calls for stable and predictable relations with russia, urging the kremlin to stop destabilizing behavior, including interfering and other democratic systems. it also asks moscow to crack down en ransomware criminals. joe biden says relations with russia are at a low point. he had put in our set to meet on wednesday. the g7 nations failed to set a target date for moving away from diesel and petrol based cars. they pledged to accelerate electrifying the transport sector. the language is a compromise. previous drafts set at 2030 target to go cleaner. 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. this is bloomberg.
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haidi: staying with the electrification of the auto industry, bloomberg has released its outlook, the report finds that the outlook for electric vehicle adoption through 2025 is getting more fragmented. what has changed since last year? >> if you look at the economic transition and compare last year with this year, we see an increase. last year, the scenario was predicting in 2040, ev sales would account for 50% of passenger sales globally. this year, is predicting 68%, certain percent increase, that is because we have seen in the short-term ev adoption accelerate faster. also longer-term, more confidence in where value price
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adoptions were happen. >> who is winning the ev raised at this point? >>. good question. -- very good question. china has been leading the world. last year, europe had a higher ev sales in china. the combination of innovation coupled with subsidies pushed up ev sales in europe in that has continued this year. you are seeing europe continue to have double-digit ev sales this year. china still a sizable market. when you look among automakers, the incumbents are gaining a lot of lost ground against tesla. if you look at europe, another company is outselling tesla in europe. in china, the most popular model is a joint venture. we are seeing incumbents start
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to ramp up. even toyota, that was perceived as an ev laggard, is launching a range of ev models and we are going to find out their plans tomorrow when they have their meeting. haidi: does that mean the level of adoption we are seeing will eliminate emissions from road vehicles, are we on track for that? ali: not quite. the momentum is pretty good. if you look at passenger vehicles, there is an acceleration. but if you want to get to a net zero scenario by 2050, we need more policy measures. when it comes to heavy-duty commercial vehicles, that is where the gap is large and that requires more policy as well as investment into technology. what is important to recognize is ev's are only one tool and policy makers need to think about the whole system design.
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>> thank you so much. up next, australian billionaire anthony pratt discusses growth in the recycling industry and the future of his three generation business. this is bloomberg. ♪
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>> we hear from anthony pratt, the head of visy. anthony pratt is the grandson of leon pratt. today, is one of the biggest private companies in the world. the company has built five of the last seven paper mills. anthony develop that division after being sent by his father to the states in 1991. his first task was to make $1 million a month. he spoke about what he sees as the future for the recycling industry. anthony: one of the biggest trends is that american business, australian business is and has to pivot towards being more digital. what does being more digital mean? it means the technology of being able to take waste and turn it
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into good quality boxes, quality paper. taking recycled glass and turning it into new bottles. i see us as bringing technology to recycling, we are the tesla packaging. i think plastics will phase out. i also believe boxes and all packaging will continue to be light weighted. there will be less packaging and it will be reduced. >> with your operations in the u.s., you have 100 facilities there today, you are targeting to double that. what is the timeline? anthony: by the time my dad filled 12 major paper mills, seven more paper mills, and each of them surrounded by 13 or 15
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box factories, so you can do the math. at the moment, we employ 10,000 people in the united states. another 10,000 in australia. i think eventually america will be bigger than australia. >> talking about expansion plans outside the u.s. and australia, where do you see in asia? anthony: we see the future very much as continuing to focus on australia, on america as the two main places we are going to grow. we have some small operations. when you grow beyond your market in australia, you have to make a choice, you are either going to invest in asia or america or europe. we chose america because, to us, it has the best balance of growth and low sovereign risk.
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the culture is a little more similar to australia than asia and the growth prospects are bigger than europe. we chose america for that reason. >> you are the one that set up that division because you own pratt industries. how did you begin to identify that the u.s. would be a large market? anthony: i think that people don't really realize -- it is important to find something that no one else is doing. our niche was 100% recycled boxes and we got a boost when people identified climate change as a real challenge, we found that recycling is an important weapon against climate change. instead of wastepaper previously going to landfill, we now turn it into boxes. >> visy started building
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recycled products before climate change came onto the public conscience. where did stem from? anthony: years ago, we would make boxes and all of those boxes would have off cuts that would have to be sold to the garbageman or thrown away. my father had the idea that instead of just sending it to the landfill, we could turn those back and paper again -- back into paper again. the jordan -- the origin was turning waste into a resource and that permeates the company. it is a critical part of who we are. the adulterated waste that we collect that we stopped going to landfill that we cannot turn into boxes because it is too adulterated, we turn that into clean energy. we built three plants during the obama biden administration.
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in our company, we generate over half of our own energy needs and we are investing billions of dollars in recycling infrastructure to continue to do this and we are not just doing it in cardboard boxes, but other subjects. >> this is a third generation family company. what are the best business lessons that have been handed down to you? anthony: number one, look after your best customers. number two, look after your best people. number three, revenues must exceed expenses. number four, lecture debts. -- collect your debts. >> you have two children who you have said you want to join the business. what are your hopes for them? anthony: i want them to be happy and healthy and if they decide they want to work in the business, that would be fantastic. it is important to give your
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kids experience in the core business for about five years. i'm talking about when they are 18. my kids are quite young. or 20 or 21 if they want to go into the business. then ask them to start a new business from scratch. they have a sense of satisfaction and learning of having to build it themselves under the umbrella of the whole company, but something new, rather than take over something that is already running. it is tempting for a lot of families to have the kids around the title with dad or grandpa and i think it is important to send kids a to different countries to start up their own divisions. >> what countries with a b for your children? anthony: could be india, could be england. one never knows. if we were going to go -- a
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region after america would probably be the u.k. and i think it is important to have persistence and take long-term views. i see the business as like my sister, many generations to complete. we only have 6% of the u.s. market even though our company has billions of dollars in sales, so we have many generations of growth left. my hope is that one can remain a private company. that is my own personal bias. >> that was anthony pratt speaking with atul drews. terrific conversation. catch a conversation every monday on daybreak asia. be sure to turn into bloomberg radio to hear more from the big newsmakers and get analysis from the daybreak team broadcasting live from our studio in hong kong. listen on the app or on bloomberg radio.com. stay with us.
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>> a quick check of the latest headlines. elon musk says tesla will resume transactions with bitcoin when mining is done with more clean energy. he said transactions will start
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back up. blue origin has raised $28 million by auctioning its seat next month. the company says the identity of the winner will not be revealed for a few weeks. the auction followed weeks of online bidding with 7000 submissions from 159 countries. a start says it is confident it will be done by the end of the year. the app delayed its u.s. listing plans while it carries out financial orders. it is the latest company to be affected by strongest written a. -- scrutiny. >> we decided to be proactive.
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we know that we wanted preclearance and we know that we want to set the bar in transparency of financial reporting. it may take a little longer than we expected. today, we are happy to share what we have done. we beat our target. haidi: toshiba says it will drop two directions from its -- two directors from its board. an independent report shows toshiba supplies will prevent shareholders from exercising their rights at a july 2020 meeting. working with japan's trade ministry. kathleen: now let's get a look at the stocks we should be watching today. sophie: keeping an eye on diver
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shipping, this company as an order from brazil's petro the in the company says it expects the demand for facilities bill recover -- will recover. sunday motor, sales update for india for the month of may and nissan on watch in tokyo on a report that it is two and development of new sedans in japan which could allow for more investment into ev's and other products. also keep an eye on vaccine-related names and opening plays in tokyo. local media reporting that some businesses will be able to start vaccinating employees this week on site. >> let's take a look at the markets starting with u.s. futures. the s&p 500 futures pointing to a slightly higher gain, building on the momentum last week. new zealand up by about 0.1%.
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nikkei futures pointing higher. korean futures as well. perhaps some momentum from last week carrying over to this week. there is concern about inflation, about central-bank meetings, shrugged off it seems as we look at the indications from equity futures. we will see what happens, we are going to be covering this in the next hour. haidi: we are getting the outlook from shelter investment management ceo richard harris as well. you're going to look ahead to the news flow this week. 13 central banks to watch this week. we have the market open in tokyo. we will take a look at what the first day of trading has to hold. this is bloomberg. ♪
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between government and the private sector. >> with a willing partner in the united states canada will be more ambitious. >> the objective for glasco's to keep the 1.5 degree temperature rise within reach. >> the train has left the station. investors care about it. people who work in corporate america care about these issues. and certainly we see that with the broader community. >> there is not enough tax in the world for private sector to pay for all of this, it is going to have to be a public-private partnership.
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>> hello and welcome to "bloomberg daybreak: asia." i am kathleen hays in your. haidi: taking a look them major market openings across asia, g-7 nations to negotiate how best to move forward with china. u.s. president joe biden takes out hawkish stance.
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starting with holidays across the region. u.s. futures at a record. measures of volatility suggesting a common desk, mode. elon musk says he will resume transactions using the digital token when the mining situation is clearer. kathleen: with that we take a look at the market open. it is a holiday trading week so far. let's go to sophie kamaruddin in hong kong. sophie: australia, china, hong kong and china offline this monday. in japan to the upside for the nikkei and topics this morning. toshiba shares are on the move amid the board shakeup for the company. the yen dang range bound ahead of industrial data as we count down and the doj on friday. ahead of that the 10 year yield
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pushing higher. switching the board come in south korea, a 10 year bond sale , and watching samsung shares after the company said no decision has been made about stopping production of its new budget phone because of. the chip crash. little move for the kospi after three began but trading has been you to with implied volatility in korea. in india higher food and fuel prices. checking on crude prices, oil prices hovering near recent highs with uti around $71 after three began. the policy division on the watch. checking out treasuries the 10 year yield 146 after resource the tenure at the tech -- best week in the. -- best week in the year.
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bitcoin prices under pressure after reaching $39,000 for the weekend. haidi: and tweets from elon musk. in equities as the ultimate safe haven. you are saying it lacks volatility, uncertainty over the inflation outlook. are you looking at inflation hedges at the moment? >> yes, and i think that is the point about staying inequities. i think in this cycle equities are going to be a inflation. they can raise prices, they are good at it in many of the big companies. those companies that can hold their own, in terms of inflation, i think are going to be the ones to be in. it is going to be difficult, where to go when tapering starts to happen, when interest rates go up. i'm sure we will get data.
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i think you have to be invested in something and if you are looking at inflation proofing then, equities are going to be able to hold their pricing is the place to be. haidi: potentially when it comes to inflationary fears, you are saying that the tax piece of this, the multilateral tax reform, is a bigger deal for investors? >> well, inflation is very important. the tax till we thought we could go is, i think, much more critical than people realize. we are talking about unintended consequences, what happens to hong kong which does not tax overseas earnings? will china want to tax earnings made in hong kong by chinese nationals? there are imponderables. i think the tax deal was quite important. i do not think will have that much impact on many of the major
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companies. you know, they will either be able to still avoid tax or afford to pay it anyway. but i inc. it was quite important. and -- but i think it was important and out of the g7 pronouncements i think that was the most significant. kathleen: there was a bloomberg story today talking about how the market is starting to reward companies to invest in their companies, not to buyback stocks or keep boosting their dividends. do you see that and is that part of a guidepost moving ahead for portfolios you manage? >> yeah, i think that is part of the governance issue people see with esg. managers using company money to buy back shares, to increase share prices, to increase bonuses, you know that is not something investors like to see. or are they using it to reinvest back into their own businesses? looking further out,
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reinvestment which has been so important over the last 10-20 years, with the dawn of the digital age, will continue to be important. because we are continue to see advances in machine learning, ai , robot technology looking further out, especially if we see inflation in wages get more important. so reinvestment is going to be critical. the kind of investment, in terms of buying back equities, that looks selfish. >> the baker's dozen central bank meeting this week, is that the fulcrum for a lot that if the fed is less than ultra of best is that ripple through central bank market -- less than ultra dovish, does that ripple through central banks? >> i think central banks will have an independent view. i cannot see them necessarily wanting to follow the fed, and in many cases there is no need because have different needs and
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different monetary policies internally. but i think the fed is that big lightning conductor. you know, we are looking at a situation where, if we do see talk of tapering, or we get tapering, that is going to be a real turning point for the market. because the market is going to think, ok, now we have a lot of debt and we have had more debt created, and grown as we speak, after the g7. so there is a lot of money in the market. a lot of money, a lot of debt a high interest rates, heady mix for the markets. kathleen: richard harris, thank you. let's get to vonnie quinn with first word headlines. vonnie: president joe biden says he is not looking for conflict with china, and the stand the g7 have taken the final communiqué cited beijing on human rights issues. however it omitted specific reference to china in the
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section on forced labor. it also called for a w h o study on the origins of the coronavirus pandemic. china has told the u.s. to stop quote chile shall yang and talks -- to stop in talks -- to stop delaying and talks, saying in a tweet that washington should move decisively to remove sanctions against the islamic republic and the ambassador said world power should take steps to avoid a repeat of the u.s. exit from the agreement three years ago. benjamin netanyahu's 12 year run as the prime of israel is over. the knesset voted to approve the opposition alliance which includes an arab party. a jewish nationalist will serve as prime minister until 2023 before handing over the reins.
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netanyahu vowed to return to leave the country. boris johnson hinted he will delay the end of the u.k. virus restrictions as cases of the delta. search. -- delta variant surge. pandemic rules were to be lifted on two 21st and johnson spoke to reporters on the sideline of the g7 summit. >> the roadmap was cautious but reversible and in order to have an irreversible you have to be cautious. that is what we will be doing. i'm afraid you'll have to wait until monday to get details. vonnie: global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: let's take a look at markets. a big week of new slope but a quiet start to the trading week.
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sophie: indeed nursing that reflected in markets and gauges of volatility and market risk, continuing to influence expectations. you can see the the ovate market risk indicator staying below zero continuing to fall below that, indicating we see less stress than normal in markets. that includes any and stocks which hit fresh highs despite a drop in trading volumes. waiting on inflation data from india today as well as a headline data for asia this monday. we expect cpi to stay above the rbis medium-term target. this likely coming in above 5% on cpi a third month in five this year which oxford economics says would likely push out policy normalization into 2022, looking to inflationary pressures. kathleen: still ahead, 13
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central banks meet this week including the bank of japan and bank indonesia. we have a preview with the chief apac economist at moody's analytics. next, president biden's first international summit, the latest on the g7 comments on china. this is bloomberg. ♪
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>> i think you will see straightforward dealing with china. and again, why not look as i have told xi jinping myself, i'm not looking for conflict. where we cooperate we will cooperate. where we disagree i will state it frankly. there is plenty of action on china. there was always something you can and i'm sure my colleagues think they can improve that they want. but i'm satisfied.
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>> president joe biden speaking after that g7 summit. let's get more on the g7 and comments on china. joining us is w managing editor ross crosby. -- ros krasny. was president biden successful in cornwall and uniting the g7 around a nominally anti-china will? -- goal? ros: i think the answer to that is a qualified yes and yes. it seems diplomacy was the winner as president biden came into the first g7 meeting in two years and got a lot of praise from france and others just for being back on the team and that is something donald trump, never really was. it seems diplomacy again is the winner. in terms of china we are hearing there was a robust debate behind the scenes about how direct the
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language should be on china in the g7 communiqué. and there is certainly, some members of the g7 who do not want to come out is purely antagonistic against beijing, and want to moderate the language. the u.s. was the one that came in strongly on that, possibly with the u.k. and the final document did highlight specifically explicitly on human rights issues in hong kong and pyeongchang -- jiangjang. did mention forced labor practices. so, somewhat of a win for biden on that. haidi: there are also criticisms of china's economic practices. ros: exactly, and again, i do not think the g7 wanted to really come out to strongly.
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that is where the back-and-forth was we cannot really see. so i think it is a pretty good compromise and as you heard from biden, he leaves he was successful in pushing to that usb point -- the u.s. viewpoint and probably will try and other international forms to go further. as we talked about in previous segments, biden remain strong or insistent on getting to the bottom of the coronavirus, to the issue of that will hand lab -- wuhan lab. that is something he deftly talked about today. >> perhaps an even thornier issue for the president, what do we know about biden's meeting with russia's not a mayor pugh to and wednesday -- putin on wednesday? ros: biden will be coming off the g7 and a nato summit which may clarify his thinking on that. it seems he has a fairly modest
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goal when he sits down with putin to make sure the u.s.-russia relationship does not get worse. i think about it and putin sort of a great relations between the two countries are at their worst in decades. they do not want to go further down that slippery slope. so we believe biden will bring up with putin the recent cyberattacks the u.s. has blamed on russia and press on that. and for putin, i think it is good for him domestically to show he is keeping the united states as an enemy and choi he can stand up to the u.s. so the dynamics are fascinating and we will have to watch to see what happens. haidi: deputy managing editor ross krasny with the latest -- ros krasny. also expressing support to carry out a safe olympics in tokyo
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with the prime minister suga. in tokyo, given how divided the japanese public is an comes to these olympics, this is key, to have u.s. and g7 support? >> yes. this was one of the major goals for prime minister yoshihide suga going into the g7. he is very much a diplomatic novice, so perhaps a modest goal for this occasion. but i think he got exactly what he wanted and needed on the other beck's. -- on the olympics. joe biden expressed support for the liv-ex and moving -- for the olympics, and moving for the athletes from the u.s. to take part. d communiqué from the g7 also referred to the olympics as a symbol overcoming carbon, which reflects -- overcoming covid with reflects -- which reflects
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language that prime minister sugar -- suga has used. >> of the majority worried about the liv-ex and the pandemic. -- worried about the olympics and the pandemic. i read a story that some athletes heyday are reluctant to say that they support it because they might feel backlash as they take a stance this similar to what many-- dissimilar to that of many japanese citizens. >> has been concerned by the public for this event to become a super-spreader event as people come in from all over the world, particularly from countries where the pandemic is still raging. but recent opinion polls have shown a softening of the public's attitude. we saw a poll last week from a newspaper that showed 50% of respondents were in favor of going ahead compared with 40% wanted it canceled or postponed.
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but opinion is still divided and bear in mind, less than 5% of the population in japan is fully vaccinated. haidi: our japan governor -- government reporter reynolds in tokyo. movers early in the center should -- early in the session. watching toshiba, said to drop to board members, shareholders to many action. -- shareholders demanding action, after the management selection was not fair in conjunction with the japanese government, unfair practices revealed in last year's selection process. toshiba will not put forward the names of two board members for another term. up 2%. and after volatile trading, the
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biotech firm had not been trading because of the supply and demand scenario. after the u.s. fda approval of the alzheimer's disease treatment that etsai developed with biogen, the upside .8%. we have seen a jump of 35% for the share price of etsai since trading last monday, with huge amounts of trading volume. next, bitcoin on the move again, jumping as much as 9% after a tweet from elon musk, again. this is bloomberg. ♪
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kathleen: bitcoin back in the red after jumping above the $39,000 mark thanks to a tweet from elon musk. he signaled the company would
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resume transactions with a cryptocurrency when mining is done with more clean energy. are cross sets -- cross asset editor joins us. what is the significant's of the tweet by elon musk? >> must creates momentum and helps define the narrative for bitcoin these days. this is something that is interesting because it sounds like he is re-engaging. also his figures are 35%-40% on the renewable energy aspect, so 50% seems like it may be attainable for people, so that is encouraging. haidi: how does it fit in with the overall trend in bitcoin pricing? >> bitcoin has been going down recently. ed henry record around $65,000 and now it is still below $40,000 -- it hit a record around six to $5,000 and now it is still below $40,000.
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-- it hit a record of $65,000 and now it is below $40,000. there is an upgrade in progress for bitcoin and g7, to about it were not too negative so there are a few things helping both right now. >> how big a deal is that that el salvador has adopted bitcoin as legal tender? is this really something that will make investors, traders, figure it could replace the dollar, and therefore it is something they should by? -- buy? >> there is a lot of initial talk of that the implementation is more difficult. it is probably not going to have that much of an impact. you could see other countries try to do something like this, but still it is not replacing the dollar. even the president of el salvador has said that. so it is unlikely to eat into
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the dollar in the near medium-term. haidi: in singapore, our cross asset editor. a quick check of the latest business flash headlines. blue origin raise $28 million by auctioning a seat with company founder jeff bezos on his right into space. the winner will not be -- on his ride into space. the winner will not be revealed for a few weeks. online bidding generated 7000 submissions from a hundred 59 countries. samsung says it has yet to decide whether to suspend production of its low-budget phone. reporting it is halting production as a result of a ship shortage. the as 21 was slated to be -- the s21 was slated to be released this year. sources say apple employees
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could see changes as early as next month. staff will keep wearing masks and starbucks will not and co--- cosco is updating as mask roles have been easing across the country. a dq in abu dhabi said to be investing in in india online retailer, $35 billion-$40 billion ahead of plant --ipo as early as next year. the company backed by walmart is seeking to raise $3 billion and could up. to $3.75 billion. we will have a big exclusive interview coming up as the asia ride-hailing company grab aims for an ipo listing by year end. this is bloomberg. ♪
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>> this is "bloomberg daybreak: asia." vonnie quinn with first word headlines. that g7 calls for stable predictable relations with russia urging the kremlin to stop destabilizing behaviors including interfering in other countries' democratic systems and it asks moscow to crackdown at ransomware criminals in the country. u.s. president joe biden says relations with russia are at a low point. he and vladimir putin set to meet wednesday. boris johnson clashed with eu
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leaders on the sidelines of the g7 summit warning that u.k. may suspend parts of the brexit agreement in a feud -- if a feud over trade rules with norman ireland is not resolved -- with northern ireland is not resolved. the country could act unilaterally if it is not resolved and the grays. expires at the end of the month. tiny president xi jinping ordered officials to check for safety risks after deadly gas explosion sunday. state media reports they told authorities to investigate risks in a bid to create a good atmosphere and improve political sensitivity ahead of the commonest party 100 anniversary next month. the gas killed 12 people and injured a hundred and hubei province. south africa's president says the country will dispose of 2 million johnson & johnson covid-19 vaccines. it follows u.s. ruling that ingredients may have been contaminated during production. the move marks a major setback
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for south africa as a third wave of infections takes off. the president says africa's largest drug maker is set to begin production of new johnson & johnson vaccines by midweek. novak djokovic picked up his 19th title when in a five set match to when the french open men's final on sunday. it puts him one title when behind raquel and roger federer who are tied for the most ever grand slam wins. friday -- saturday ever cratchit tova one her maiden grand slam -- won her made an grand-- maiden grand slam title. this is bloomberg. haidi: let's get a look at markets now with sophie kamaruddin in hong kong. sophie: and south korea the kospi little change after a three week gain with financials
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the biggest drag on the benchmark while internet names are on the rise. daewoo shipbuilding shopping 6%. won an fpso order from brazil petrobras indicative of the rebound in global trade. a tanker and shipping traffic on the terminal a number of ships bound for china continuing to rise. also south korea as the destination. singapore had the biggest jump from 18 ships to 65 the next three months. turning to japan for moves in tokyo seeing discretionary and utilities leading what we are seeing videogame stops falling, as japan's vaccine program picks up pace. and after our rally last week saw a 10 year yield dropped to 10 month low [-]
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friday three basis point was low. jp morgan recommending going short tenure bonds for japan at 0%. kathleen: the competition on wealth managers is map -- ramping up in japan as aging population accumulates savings. that project one broker to double the size of its research staff. are asia finance editor in tokyo, russell, tell us more about the hiring spree from s&p see nico, what are they trying to achieve -- smbc niko, what are they trying to achieve? >> to grow wealth management business in japan. they started offices in march which caters to rich individuals, offering investment research and ideas on allocation. that wants to double the research team to 14 as part of this. the chief investment officer is something japanese banks are taking from level wealth
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management giants like ubs and credit suisse. we had one firm last to become the first to do so and iowa is preparing to do that-- daiwa is preparing to do the same as well. >> how much of this feeds into the broader backdrop demographic story of why these businesses are having to be fab? >> -- having to beef up? >> japanese households have $18 trillion in assets and more than having cash. in the low rate environment they need help to manage the wealth more actively. brokerages see big opportunities but the move also reflects increasing competition for their traditional retail business, which is trading clocks -- stocks for clients. that is less proper verbal -- less profitable with online brokers cutting commissions and the robinhood phenomena in the u.s.. so firms are chasing high-end clients and trying to offer more high and the spoke services such as customized research.
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the ideas to get recurring fees to manage their wealth rather than commissions from executing trades. the shift from savings to investment in japan is a slow process so that sounds easier than done. haidi: russell ward are asia finance editor in tokyo. singapore's food delivery and ride-hailing app, grab, is confident it spac merger will be done by the end of the year. plans are delayed while it carries out a financial order. bloomberg spoke exclusively with the company ceo about impacts. >> the truth is, we decided to be proactive. we know that we want to to go for preclearance with the sec, and we know, we want to set the bar in transparence --
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transparent financial reporting. yes, it may have taken longer than we expected but, today, we are happy to share what we have done in q1. we beat our targets. our top line grew stronger than expected. we continue to improve profitability. our spend per user went up 33% year on year. because it proves that our app works. more users use more services. we still see so many growth options across cities we serve in the region. juliette: we are looking to the review of the financial statement with the spac. do you expect any reinstatement once that is done? >> i cannot comment for future statements. but what i can say is that we are happy with q1. i think all of us are focused on executing for our consumers and
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the second half of this year. juliette: what about plans for further expansion when you look at the likes of others making an ipo and doordash in japan, do you have broader expansion plans? >> know, we are going to stay really focus to win hearts and minds and wallets of southeast asia. juliette: you are confident spac the spac will be done by the end of the year and we are hearing there could be a secondary listing in singapore. is there truth to those rumors? >> for us, we consider all kinds of options. but the most important is really focusing on this nasdaq listing. and we are guns blazing on track. and laser focused. juliette: laser focused that it will happen in 2021? >> yes, that is right. juliette: what about the thought here, going with a spac rather
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than a traditional ipo? >> actually, before, we were preparing ourselves for a traditional ipo, or what you name a traditional ipo. but we were so impressed with the team -- the team was so impressed with how committed they were, and they continue to be. how they put in their own money where their mouth is. they have invested and co-invested with us. they have put in money, into our grab for good fund. and brad himself is an operator. we want fellow operators on our cap table so we can -- so we speak the same language. and i think once we saw this match made in heaven we said hey, we are going to take this partnership. kathleen: grab ceo anthony tan
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speaking to bloomberg. up next to look at the week ahead for asian central banks with the chief apac economist at moody's analytics. this is bloomberg. ♪
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kathleen: the federal reserve, bank of japan and bank of indonesia are among 13 central
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banks reading this week and the coming days may set the tone for global policy for the rest of this year. investors expect that u.s., japan, and indonesia, to keep policy unchanged and sustain stimulus. joining us is chief apac economist at moody's analytics. does the federal reserve, is this the force behind how a lot of people will react? does the fed hold steady, and central banks breathe a sigh have relief -- a sigh of relief? if he gets more hawkish will somehow find their path more difficult like the central bank of indonesia and even the central bank of india as inflation numbers push higher? >> welcome i think you are right everyone is watching the fed. this is the key role the fed plays right now. my expectation is that, at least
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by july, there will be some talk about talk about inflation part make, about -- pardon me, about rising interest rates. the fed is going. . to be very cautious. they are going to be sure date send the signal out very early, -- the fed is going to be cautious, they're going to be sure they send out a signal early and in a measured way so as not to set off any alarm bells. i think central banks are holding tight now waiting for that message from the fed. given july, it could be at the august jackson hole meetings and it could come as late as september when the messaging begins to be more clear from the fed. i think central banks are going to just sit tight. there is not a lot of inflation in the asia-pacific area. we see it in ppi but not a whole lot of consumer price inflation now.
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so central banks i think can, in many places, afford to still hold tight for a while. kathleen: how about india? the inflation numbers we are going to get this week are expected to show the number continues to move above target. a bloomberg story was quoting some investors saying, they will be shying away from emerging markets, where inflation is rising and central bank's are in a position to not try to do anything to stop it. >> well, india has the biggest problem with inflation of all the asia-pacific. a month ago cpi was 4.3 percent over the year and my expectation is the number coming out this week will be over 5% and it could be 5.3%. there are some factors driving that. one, fuel prices, driving inflation everywhere. brent crude is up to $72 a barrel now, so energy prices are up.
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but the year-to-year comparisons make the inflation numbers difficult to deal with. a year ago in india vegetable prices were very, very low, so food prices will be part of the increase in inflation. but it will be because of the low base effect, not so much because of any real current month. hikes and prices. and given -- not because of any real current month hikes in prices. and i think the rbis will want to hold steady as well. covid numbers air coming down in india and i thing to will not be any move until there is certainty that all of the state economies are beginning to open up and that the economy is getting back on its feet. haidi: taking a look at producer price inflation across asia pacific, if you look at the yellow line, that is where india is expected to top 13% today. when you start seeing the global
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pass-through when it comes to chinese ppi? and what is the gap between consumer and producer price inflation telling you? >> yet, ppi's were markedly high in china, being driven up of course by many of the disruptions and supply chains, combined with the still pretty strong demand for goods around the world, their export linked manufacturing industries. but it is not slowing through to cpi, at about 1.3% in china. if you look at core cpi, it is below 1%. and is not having a real effect yet on cpi. so, i do not think we will see much move in terms of broad interest rates. i think what china will do, and china has been pretty good at this over the past year, is being very targeted with the policy moves they make. policy makers will want to
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continue to provide fair amount of liquidity to manufacturers, to be able to deal with high input prices coming in, and keep manufacturing lines going. at the same time, they may actually continue and accelerate on macro prudential policies to try to hit some of the hearts of the economy particularly the housing market, to try to slow down the housing market and housing prices. so, very targeted policies in china i think, as opposed to a broad interest rate change now. haidi: the uneven vaccine rollout is another big theme across the asia-pacific. australia, with prospects of international borders stay enclosed another year or beyond, how -- i am wondering if a closed economy is only sustainable up to a certain point? >> well, it makes it harder to close the output gap in countries you do not have open
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borders, or you do not have the travel and tourism, or the business travel, that is important to maintain business investment spending and so forth, in economies. when you look at some of the smaller southeast asian countries are asia-pacific countries that are really dependent on open borders, singapore and hong kong would be the primary examples, the export-based economy will stay strong. it will be an important driver of the economy. but the countries really cannot re-achieve sustainable long-term growth rates consistent with the past until they open up the borders, it is really impossible. haidi: stephen cochrane chief apac economist at moody's. plan rate hike will be brought for this year. speaking exclusively with bloomberg, the country is going
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inflation pressures for the current level is not far from target. >> what we know is the economics are more resilient to the lockdowns and the impact of the pandemic. much more resilient than it was last year. we know we ended last year in a very dynamic --of the economy that continued into the first months of this year. and now, starting in june, we will have the additional impulse of fiscal measures that will provide subsidies to 15 million people in the country. so that is a very large -- sustained over four months, a very important input on economic, on-demand. shery: that also means x -- that
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inflation is accelerating faster and will top your target for this year. so how argent lead you feel the need to raise rates -- so how urgently do you feel the need to raise rates? >> inflation, the last reading was 3.6% for inflation. and we are experienced the kind of pressure many countries in the world are having, going from oil price especially compared to the low levels of last year. transportation costs, some raw materials. but on top of that, in terms of the longer-term pressures, which is what is important for monetary policy, the applicant is closing faster than expected. and that is why after forecasting to keep the interest rate at its effective zero lower round until the beginning of next year, now we say we are
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bringing that a little forward, because of a more dynamic demand. shery: how much forward? markets are pricing in a rate hike soon as next month. >> well, i cannot be precise about that. of course, it is something we will assess from one meeting to another. shery: will it be in the summer? >> but what i could say is that, you know we use this device called rate scoring to chart what may be expected for monetary policy, and that is moved forward a little more than a quarter compared to the sensibility reflective a more expansionary policy in the previous readings. so i mean it is something we will assess over the next few meetings, but it looks likely that it is certainly coming this year.
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shery: so, what is the point of holding back though? i mean, it seems like you will have to raise eventually and you are same within this year, so what is the point of waiting? >> well, consider that precisely because of the low terms in terms of the dynamic of the output gap, we are currently at a time when the output gap, after closing relatively fast, is opening again. certainly not at the sky we saw last year. but it is broadening a little. so we need to see the dynamics of the activity, to see that the economy is in a path to a more sustained closing of the output gap, to move ahead. as i said, right now, inflation is not extremely far from our target. so it looks like there is a policy space to assess and make
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a good decision. kathleen: the chile central bank governor. more to come on "bloomberg daybreak: asia." this is bloomberg. ♪
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haidi: toshiba shares trading higher this morning.
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in the first hour in tokyo we have seen upsides in the stock prices after the company announced it would drop to existing directors from its board. we are seeing off session highs come up about 2.6%. in an investigation showing unfair practices in last year's election for these board members. the company is expected to host a press conference it 1:00 p.m. local time in japan today. for more on what to expect, never a dull moment with a conglomerate, what is the latest and what are we expecting today? >> good morning, we know toshiba will not put out the names of two current directors for another term. these are --. they also said they will not reappoint to executive officers. you know, it is a small first step in the right direction. and the four outside directors at toshiba put out a separate
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statement saying as much. and they are showing their support for the shift and board nominees. they also support to current chairman as the person to oversee those shifts. but to give your perspective of how much more could be done, and advisory firm of institutional shareholder services recommended shareholders vote against all five nominees following the board result. kathleen: what does this mean for activist investors in japan? >> they have not had an easy time in japan. what is damming about this report that came out last week is it is not just toshiba's involvement but that it implicates the highest ranks of government. we know yoshihide suga, the current prime minister, met multiple times with toshiba executives and ceos and expressed strong support for
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their desire to fight back against shareholder initiatives. kathleen: thank you so much. that's it for "bloomberg daybreak: asia." this is bloomberg. ♪
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>> good monday morning, it is not :00 a.m. in beijing and shanghai and here in hong kong. let's get your top stories, the g7 showing unity when it comes to china. the group condemning aging's human rights record and man's a thorough investigation into the origins of the -- and it demands a thorough investigation into the origins of the pandemic.

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