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tv   Bloomberg Daybreak Australia  Bloomberg  June 14, 2020 6:00pm-7:00pm EDT

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>> good evening world -- good evening from bloomberg world headquarters. i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. welcome to "daybreak: australia." shery: let's get started with a check of the markets. seeing u.s. futures under pressure, down more than .1%. this after shares rebound on friday from the biggest route in 12 weeks. we have seen bargain hunting with investors buying into some companies that took the biggest hit in the previous session like real estate and financials.
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there are concerns over the pace of the recovery, the second wave of infections. infections rising in 22 states across the u.s. the dow ended the session up 1.9%. the s&p 500 up 1.3%. the s&p futures, under pressure. oil also falling with the $35 a barrel level. this is after crude posted its first weekly loss since late april. we have, as i mentioned, fears of a second wave of infections affecting the fragile recovery. investors are awaiting the opec-plus joint technical committee meeting this week. let's see how things are shaping up for asian markets. monday, fragility well. on view as asian stock futures looking mixed after the regional benchmark cap to the first weekly drop in three. patch,hitting a rough sinking more than 5% in three
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days. signaling concerns around a potential recovery across the globe. value performing decently in --a for the month of we are going to find out if central banks will add support with rate decisions do including taiwan and indonesia. in japan, after parliament passed a record second extra budget, the boj has -- was seen was focused on its corporate funding program. checking in on currencies, let's check in on the stand up moves early in the asia session. aussie dollar under pressure heading toward 68. a, kiwi dollar moving toward key support level retreating from a four-month high that it hit last week under pressure, along with offshore yuan with beijing's recent outbreak on watch. more downside pressure for emerging currencies which follow for the first week in a month. a jp morgan gauge of implied follows for the first time in several weeks. the risk barometer, the dolly gain -- the dollar-yen.
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haidi: let's get to the top story moving the markets. at the start of the week fears of the coronavirus resurgence in china. let's get over to our beijing correspondent tom mackenzie who was on the line. we have seen concerns that the second wave will play out in beijing with the shuttering of this major vegetable market. tom: yes, this is a cluster of deep concern to officials. they've been ramping up efforts to get it under control. it is real -- a real test for them. china reporting the largest daily increase in cases since mid april. 57 new cases, or new infections as of june 13, with the majority in the capital. they reported an additional eight more cases towards the end of the early part of sunday. in terms of the market, this is the shin for audi market, the largest fruit and vegetable and meat market in beijing. it was shut down early saturday after the virus was detected among some business owners.
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the equipment they were using particularly, a chopping board apparently used by the seller of imported salmon. that is according to state media. officials later came out and said the genome sequencing suggests the virus, this strain of virus came from europe. and it is not yet known how it was imported. authorities have been ramping up their efforts to get this under control, this outbreak. they have been taking samples at the market, they have tested thousands of people linked to it. they are aiming to test at least 10,000 people who work in or are linked to the market. 11 residential subdistricts near the market have been shut down, effectively in lockdown. yesterday, it there were fewer people out and about and there buying.orts of panic this is a real test for the trace and test system that china has been in place to see if they can crack on these clusters and stop them becoming major second waves. shery: we may be seeing a second wave in the u.s. as well. cases surging in 22 states. tom: the latest numbers out of
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the u.s. showcases increasing by more than 23,000. you are looking at a total of more than 2.0 8 million infections in the u.s.. that is a 1.1% increase. it matches the average daily increase of 1.1% over the past week. you saw deaths rising to well above 115,500. new york's death fell for a second day, but florida's cases outpaced the weekly average for a fifth straight day. that is one of the states that is of concern to officials. you have rising infections, as he pointed out, in 22 states. that has led to officials and former officials saying look, there's a grill concern that you are seeing the start of a second wave in some of the states. former head of the u.s. fda coming out and saying the rise in case counts and high hospitalization rates does address the new outbreaks are underway. shery: that was tom mackenzie in beijing. more perspective on the pandemic
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ahead with harvard gold -- global health institute director joining us on daybreak asia. says theyd, hong kong support china's national security bill for hong kong despite the shock move. don't miss our exclusive interview. up next, bloomberg uncovers stunning evidence that appears to support carlos ghosn's playing -- claims that he was set up. that is just ahead. this is bloomberg. ♪
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>> you're watching daybreak australia. i'm karina mitchell with first word headlines. bank of japan opens a two day meeting on monday and expected to leave policy unchanged as the coronavirus weekends in an already struggling economy. the boj will leave asset person -- purchases as they are as they see the impacts already underway.
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policymakers don't see a pressing need for major changes at this time. australia is to announce a new infrastructure spending later to kickstart the economy in a era.virus prime minister scott morrison will lay out plans across the country with the equivalent of one billion u.s. dollars being allocated to shovel ready projects. he says he wants most parts of the australian economy back up and running i the end of next month. next month.d of th virus lockdowns and worries with e.u. saw the gdp back where it was in 2002, after plunging by a record 25% in february. the u.k. economy is expected to recover, but is still seeing facing one of the worst recessions in the developed world. north korea is threatening military action against its neighbor as cross-border relations sour rapidly. kim jong-un empowered his sister says the next move against a
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soul will come from the army as tensions rise over a wave of anti-north korean propaganda from the south. kim says it would be better for the north to take concrete action rather than respond by diplomatic statements. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. am karina mitchell. this is bloomberg. back to you. he wascarlos ghosn said set up and others evidence to support the claim. what kind of evidence have you come across and does it stack up against was -- what nissan has been saying? >> good morning. essentially, what we learned here was that there was a much more methodical campaign to remove carlos ghosn as chairman of nissan, as well as ray no. naud.
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alliance. the foundations of the alliance were becoming a little shaky. essentially, with what nissan discovered, and also sought in terms of investigating carlos ghosn, that then turned into more of a corporate strategy that alternately resulted in his downfall. shery: we had seen during this saga that thatn -- that then cl was one of the key players. who were some of the main actors in this unfolding scandal? reed: at the center of some of the things that were taking place was a person named hari nata. he was the chief of the ceos really one of the key players here in terms of coordinated what was happening. so we have learned from some of his communications that he was as early asosn
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february 20 18th. and then leading right up until carlos ghosn's arrest in november of that year. what is the state of play right now when it comes to the other key players? where are they, what is the progress that is being made? what are they doing? reed: when you have to remember is that the downfall of carlos ghosn triggered massive management turmoil within the company. eventuallythe time left over his own issues over compensation. a new management team was put in place, but that became shaky soon afterwards. you have to remember that another person that was arrested at the same time as ghosn, greg kelly, who was a board member, he is still awaiting his trial here in tokyo. and of course, ghosn himself
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made a dramatic escape out of japan at the end of december, and he is now in beirut living in a house bought by nissan. although it is very unlikely he is ever going to face trial in japan. shery: we had heard from nissan's latest overhaul plan that they could be looking into closer integration with renault, eventually given the state of the car industry with the pandemic ongoing. wheret can we say about the carlos ghosn saga has left these two companies in terms of cooperation? the two companies did forge a new agreement in terms of how they would operate with each other. so far that is looking pretty good. renault and nissan also need each other more than ever when pandemicder the global has really hit demand for cars. so, what they are both embarking
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on is a bunch of cost cuts, introducing new models. but really, the question is how can they extract more value out of the alliance while restructuring at the same time? essentially, competing against much louder -- larger companies, even though they have a somewhat fragmented structure that includes mitsubishi motors. shery: reed stevenson there with the latest from tokyo. coming up, traders returning from work this week are trying to decide for weather last week selloff was a blip or something more ominous. a mutual fund ceo gives us her outlook next. this is bloomberg. ♪ this is bloomberg. ♪
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mentality, the conditioning to buy the dip is embedded in this market.
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>> we certainly don't think this mini pullback is materially worse. we could see a downturn. >> i think yesterday, while the market was due for a pullback, i think the tone of it was probably too harsh. >> you think of where equities bottomed out at and how they have rebounded, they clearly got overextended. and a lot of that has to do with the fed's easing money policy. >> for a time, as the market was selling off, it seemed like everything was going to rally the fed was behind now we have to be more cautious. yeah, the fed is behind you but they will not recognize -- rescue everybody. you have to be more careful. >> even with all the policy response, it will take a while to get back to the long-term growth potential of the u.s. economy. >> it is going to be a check mark. it is not going to be a sharp v. marketre concerned the has priced in a positive bounceback and economic growth that may not materialize. shery: some of our guests
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reacting to the wild and to last markets.he and for a deeper dive, joining us from santa monica is cr mutual funds chief investment officer terri spath. great to have you with us. this gtv chart on the bloomberg showing our viewers what a wild week it was. in the u.s., the worst week since march. we have the dow leading the declines. given what we have seen in terms of the pace of the recent rally, our swift reversals inevitable? terri: i don't know if they are inevitable. the fed has said they will do whatever it takes, and that has ignited a stampede into stocks. it is sort of an all-you-can-eat buffet that seems to be going on most recently. i don't think that is a prudent way to look at what is going on. i think what investors need to realize is risk matters. and it always matters. the most common question we've gotten recently is why is this stockmarket market moved up as
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much as it has, given the economic data being such a disaster? ishink this sharp snapback prone to a lot of volatility going forward. there's going to be big up days and big down days. i think investors really need to pay attention to risk in this kind of a sharp snapback that we have seen. haidi: we have seen a lot of retail -- shery: we have seen a lot of retail investors getting into the stock market game. given that discipline is important, where would you advise them to find opportunities? terri: yeah, i think that is a good question. i don't think it is just a buy all the stocks that are out there. i don't even think it is by the safe stocks. we have seen a lot of strategists point people toward safer stocks and dividend stocks. yeah, those can be a little safer, but in our view, it think you need to expand your view of where to put your money. so right now, we prefer, prefer
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to stocks over financial stocks, for example. we want to pay a lot of attention to the drawdown that can happen. so prefer to stocks are issued by financial companies, but they are safer, a lot less volatility than financial stocks. we like high-yield corporate bonds over small-cap stocks. for a similar type of reason, it tends to be similar types of companies. they are growing a lot, they are more risky, they are smaller. but the high-yield corporate bonds give you a cushion with that. we like emerging-market debt over emerging market equity. in this type of environment, i think you need to pay attention to the drawdowns you can suffer in asset classes and look more broadly in terms of where. you want to make money -- of where you want to make money. haidi:haidi: what is the whole story? what does it tell you about the hazards that you have a company that is now offering shares
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despite being destined to be out, and readily admitting that those $1 million of new shares may be worthless as well? terri: yeah, i mean obviously, we don't like that. on the one hand, the fed really stepped in here in the u.s. and the government also with what they are willing to do to help bridge this period of time that is so challenging. at the same time, it is creating this living dead zombies type of market, zombie company. these kind of things, these companies i can only exist if they can borrow money. which is the definition of a zombie company. it is not something we think is a good thing for the market. same thing with his lame markets. it is like this a buying thing. and then creating a market that can only survive with further and further debt. i don't think that is long-term, a very good thing to do. hopefully, we see these things start to unwind and the economy come back to normal.
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again, risk really matters. marketsne in these really matters because the drawdown, just as we saw last week, can be really, really sharp. stairs niceakes the and slowly typically. and falls faster. it is important, particularly when things raced back up the stairs at a pace that is not typical, to pay attention to the fact that the declines can be so pay attention to that risk and really broaden the net as to how you are going to manage your money. does your outlook figure into your preference for em debts? terri: that's a good question. i mean, with the dollar, i do think we could see potentially some weakness on that. we are not necessarily taking a view on the dollar. i think you can make the case for rising interest rates in the
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u.s. you can make the case for falling interest rates with the scenarios out there. i think for emerging-market debt, the call for that is really that risk is relative to emerging-market equities, for example. if the dollar doesn't make a sharp move one way or the other, that is a good place to make some nice yields. these are countries that typically are trading like high-yield corporate bonds in terms of their yield, and they are safer than that in our view. shery: we have seen investors givennt earnings reports, how skewed they have become because of the pandemic, when will they start mattering again? terri: yeah, it is really hard. your guess is as good as mine in terms of what earnings are going to look like this year. and how fast they are going to come back. i mean, i think stocks have to
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trade on earnings. that is just the reality of it. but in terms of a normalized level of earnings is where stocks should trade. and there is nothing normal about 2020. absolutely nothing. and i don't think any company has a good sense as to whether earnings are going to be this year. ofi do think it is a period time where investors should take a breath, because things will come back very, very quickly. so look at your portfolio. if you made some things that have gone into the red zone, i think it is time to take those chips off the table. there is going to be a lot of volatility going forward. the risk to earnings this year, i don't think is necessarily to the upside. even though they have come down quite a lot, just because there is no clear visibility on that. will have to keep a view on that for 2020. forward, it isng
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not going to be a v-shaped recovery, because that is typically not how earnings come back. it is going to be a slower solution. bear that in mind when you are looking for the growth for your stocks going forward. shery: when you are assessing every company this year, how much are you factoring in the potential of rising cost, whether it is adjusting to the new social distancing world because of the pandemic, or the rearrangement of global supply chains because of the u.s.-china tension? terri: yeah, i think you are raising some really good issues. i think there are so many additional risks that have been introduced because of this pandemic that are almost making us forget about the risks that were already there. when we started 2020, the big discussion was this u.s.-china trade issue that was going on. and i think now with the supply chain really being at risk,
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there can be some pain to the upside in terms of pricing. there is alsoe, inflationary pressures to the downside, just because demand has dropped so precipitously. so, not really clear how that is going to play out in terms of the cost structure for these companies. our defense asng our number one approach to investing right now, in terms of, we want to have the trends but we want to have a cell discipline and a cell level for everything we own. because i think these things can drop. i think the ability to predict is so opaque right now, that we cannot make a clear decision. so we want to play some strong defense in these types of -- in this environment. haidi: great to have you. see our mutual funds chief investment officer, terri plot -- terri spath of their. let's get a check of the flash
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headlines. american express has an approval to start clearing services in china, making it the first foreign payments network to be allowed to process local currency transactions in the mainland market. the pboc granted the license to amex's local venture after approval two years ago. in the system must be up and running within six months. the move comes amid tensions between beijing and washington. china is planning a new airline on the island to tap into a planned free-trade area and expected rise in tourism. the carrier would be the majority shareholder with other factors including the government of china, as well as junior airlines and the filing makes no mention of h and a indebted owner. coming up next, doubt -- our exclusive interview with the chairman laura chan. why she says china tensions with the u.s. could be good for that. this is bloomberg. ♪
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the chairman of the hong kong exchange was, off guard by china's decision to impose new national security laws in hong kong, but remains supportive. spoke excludes -- exclusively to david inglis about the bill and the ipo pipeline. laura: i was, like so many people, because there was no early indication that it would. that, i think it was a good sign. david: it was a surprise? laura: it was a good thing that decision that came out. david: in what way? laura: i think it provides
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clarity. and it will ensure future stability, because as you know, we have gone through what we have gone through last year, there was a lot of uncertainty about the lawand order, etc. i think this certainly created a clarity in the stability for us to move forward. david: what do you think would be the biggest misunderstanding based on the information we have now, on why people are concerned about it? that frankly, in your view, they should not be concerned about at all. laura: i think as you said, it is too early. we don't have the details yet. based on the information we have so far, it is not a widely -- and the central government officials have also said it is only a very small group of people who this was targeted at. at others, the rest of us are waiting for the details to come out. but because it is such -- nobody expected it, so there was an
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element of surprise that probably created a bit of uncertainty. david: why is it that businesses feel they have to pick a side? laura: i believe that now, in this current geopolitical environment, many companies are finding it very difficult to especially for companies that operate in multiple jurisdictions. and each company will make its own decision. and make its own position. ethic it will be up to the company to decide what will be best for them. david: in terms of the concerns that you have heard from institutional investors, what would those concerns be? and frankly, at the end of the day, how does the government and business community here address those concerns, and hopefully lay all of that to rest? laura: i think first and foremost, it is a matter of confidence. by the time the detail regulations come out, which i believe will address the
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concerns, people will see that it will not affect the whole valley --. the core value of hong kong the core value being a fair and transparent market. integrity of the market. in the level playing field where everyone is treated the same. david: ipos are coming. it is going to be a big week this week as well. obviously, apart from, should we expect more names coming for the rest of the year? laura: we have a pretty good and healthy pipeline. you know i can't talk about names or numbers, but we do have a very help -- a very healthy pipeline and we hope to get to number one again this year. david: compared to last year, and no you can't give exact numbers, will it be better than what we had in 2019? laura: i certainly hope so. b.i., recently with ms tell us about that, what was the rationale behind it, and when can the market expect the tangible fruits of that agreement be investment tools
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for them? it is msci, the product, really the effort of our entire plus our government support. it is part of our strategy to expand into that product, outside of the equity, which is our core part of our business. so again, it is very much part of our strategy. big win for us. through our hard work. we believe it will be successful. we know it will be because these are very attractive products. and we have a good working relationship with msci. the products will come out gradually, hopefully soon, maybe later this year. not all at once. but in batches.
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shery: for more on the hong kong exchange outlook and the big week ahead, david inglis joins us now. it seems the stars have aligned, in favor of the exchange recently. david: absolutely. no better time really. good morning, by the way, from hong kong. for the fruits of their own efforts and a lot of the external conditions for them, then their 20th anniversary that they are celebrating this year. she talked about that deal. they will be rolling out those products, hopefully we get regulatory approval. the regulators this point this year. the shares are perp -- are virtually back to all time highs. the turnover has been good. i asked her whether the tightening of listing rules in the u.s. has benefited them net-net. obviously, what she said was there are definitely a lot more people looking to talk to them,
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among other exchanges, i would imagine as well, than otherwise. the other thing we also touched on, to bring that up, the 28th anniversary this year, they look forward to the next 20 years. the question then becomes, do you still consider singapore as your main competitor? or does that eventually come shanghai -- become shanghai? people loop the rise of shanghai as a threat to the rise of hong kong. what she is saying is based on what we have seen so far, does china need 4, 5, 6, 7 exchanges, she says it is not up to them. competition can take care of itself. but she does hope a pie simply grows and they can focus on what their strengths are. haidi: tell us more about's debut. the big item this week. pretty healthy appetite as well there. david: yeah.
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180 times oversubscribed was the retail portion, according to the hong kong economic journal. based on pricing, i think it is two to six a pop. the u.s. adr closed at 58. if you do a rough adjustment per share and hong kong dollars, that translates to about 2.29 a pop. the offer price is a little bit there. who knows what the differential will be come thursday. $4 billion preview option pit that become smaller. 3.8 billion dollars. world's second-biggest. eligible for shortselling, according to the exchange and it debuts on thursday. more broadly on mainland china, what are you watching out for this week? you guyse would be, were talking with tom earlier, what the markets are going to
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mean for the markets today, talking about the beijing market, what it means for sentiment. there's the data that comes today. everything from retail sales, industrial production. month,ment from last nowhere near normal levels that year. last in fact year to date, retail sales are expected to be about 13.5% lower compared to this time last year. you are looking at a chart in the market. if you measured it back to april of last year, the composite has not gone anywhere when you look at this. that is when the trade war started and kicked off. yeah, we will look ahead to the data dump later and see whether this improvement continues and what the markets will take from that, and the developments over the weekend at the market in beijing. david inglis there in hong kong watching all of that for us. why 30% say they are
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spending -- they think they will never return to pre-covid levels. monica joins us next. this is bloomberg. ♪
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karina: you are watching "daybreak: australia." the first word headlines now. new reports say the campaign to remove carlos ghosn as the head of nissan nine months before his arrest in late 2018. ghosn has always maintained he was set up and sources tell us
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senior nissan people planned to that amount. it was motivated by opposition to his plans to move nissan closer to renaud with some seeing a chance to overhaul the alliance. meanwhile, beijing has closed the largest fruit and vegetable market and locked down surrounding houses as coronavirus cases spike and raise fears of a second wave of infection. authorities reported the largest daily rise in cases since mid april if more than half locally transmitted. most of the cases involve people who work at the market or who have visited there in the last few days. the economyed up of started monday in an -- in an address, emmanuel macron says france is ready to turn the quarter -- corner from the coronavirus after more than 30,000 deaths. restaurants and bars are reopening in paris and all schools will resume next week. the economy is expected to shrink by 11% this year. spain is to announce a $4
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billion stimulus auto program later monday with a plan for the tourism industry later this week. the sectors account for a quarter of the nation's gdp with cars making up 1/5 of all experts. both sectors have been severely hit by the pandemic with the spanish economy expected to shrink by as much as 15% this year. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am karina mitchell. this is bloomberg. australia aims to reopen most parts of the economy by the end of july, helped by the success in containing the spread of the coronavirus. the lockdown has ended australia's almost 29 year recession free run, and jobs data show the scale of the task ahead. let's get perspective on how aussie consumers are feeling about the restart. we are joined by bcd partner monica wegner. tell us what your research has taught -- has shown about the
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consumer sentiment aspect. obviously, there was the pandemic, the hoarding purchases that kept retail sales and consumer sentiment data elevated across this time. what about things that are not seeing as opposed to -- as far as necessities going forward? our recorders called cautious optimism. i think that is because we did not see a huge uplift or resurgence in confidence in our study. what we saw was a slight improvement in measures such as the worst of the coronavirus. 30% of consumers are agreeing that they -- that they're spending has not returned to pre-covid normal. we still see quite a cut to spending, as a part of 50%, over the next 12 months. in particular, continued reduction on luxury products or anything that they consider
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discretionary. was at a shopping center this past weekend for the first time since this started. people,re keys of crowds of people. there seems to be a sense of revenge consumption going on. how long does that last? in a survey, we definitely have seen some areas where consumption is increasing. those areas that generally are the ones that consumers have been holding back on, that they consider a little bit more essential. maybe some small treats, things shoes or someor treats with regards to how they can enjoy their lives a little bit better. but the areas that they tell us that they will not increase their consumption are those that they consider to be more luxury.
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fashion accessories or handbags or luxury brands. shery: what was really interesting about your report was that you also categorized your findings about sentiment among consumers between different age groups, as well as gender lines. what have you found? monica: one of the most interesting findings with the differences, both in terms of geography, which was that those states where the restrictions had lifted the most, other ones where we are seeing sentiment improving the most. so for example, new south wales and south australia saw percentage lifts of six and 7%, whereas those like queensland and victoria, we did not see the shift as high. the other area was on gender. saw that females across all age groups were less optimistic. and if i take millennial females
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as an example, we had 35% who feel less inclined to be financial night -- to be financially secure, versus 20% of the equivalent of millennial men. and 32% of female millennial think it will take longer to return to normal, compared it to 39% of millennial males. second, we are getting breaking news. in china, officials are now probing the government after resumed and reemerged in beijing. now the government is probing officials after we saw this resurgence in virus cases in beijing. remember, beijing shuttering its largest fruit and vegetable supply center and locking down nearby housing districts.
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when we had the emergence of covid-19, the epicenter in wuhan, we saw many local officials being blamed for trying to conceal the virus outbreak. right now, bloomberg has learned china is probing officials after we saw the reemergence of virus cases in beijing. you, givenurning to we continue to see the second wave of infections, not only in china, but across the world, what sort of fundamental changes are you seeing among consumers now? monica: i think this is particularly interesting. because china was the market where we saw the most optimism. and now it will be interesting to see in the next wave of the research, how that changes. because i do believe that australians are cautious because they see what is happening around the world and they see instances like the second wave, and they know that the situation is quite tenuous. they observe that even though
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they feel they are in a lucky country, they don't take it for granted. so what we have seen is that 59% of australians believe that things have changed permanently and will never be the same again, and that is quite similar to the u.s. more pessimistic from some countries, like france. haidi: we have been talking about more broadly the concern over exported chinese deflation. and that plays into the chinese consumer as well. how much of a dent is it to australian retailers and the overall sector when at least for the time being, for the foreseeable future, we are not going to get chinese tourists consuming as well as overseas students as well? yes, i can't comment on the exact impact of that, but i think that shows through in the sentiment. i think people understand that they cannot be reliant on their
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own consumption in economies being dependent on seeing more people come into the country in terms of immigration as well as tourism. shery: great to have you with us. bcd managing director and partner, monica wegner joining us from sydney. still ahead, we will analyze china's economic outlook with ubs investment bank. we will hear from j.p. morgan asset management and jb digits, the fintech arm of coming up next, australia is set to announce new infrastructure spending in a few minutes as it looks to kickstart the economy. we have the details. this is bloomberg. ♪
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haidi: tensions between australia and china continue to escalate, with an australian citizen being sentenced to death with drug trafficking charges. we have this roi with paul allen in sydney. -- what is the context that we should be looking at? this yeah, the timing of is pretty interesting to say the least. it concerns a gentle man who was arrested in 2013 while passing -- trying to board an international flight.
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he was arrested seven years ago. seven and a half kilograms of methamphetamine was in his luggage. it does seem like something of a coincidence that the death penalty gets handed down after all of that time, right in the middle of a very sick -- very diplomatic dispute between the countries. the trade minister in china saying, there's nothing to see here, there is no coincidence. china is saying it is upholding the rule of law and the trade minister says while we should not view this as retaliation. the timing is curious. china has hit parley as we have discussed. it also has warned students not to visit due to racist attacks. the trade minister saying that he is keen to visit china or hold a virtual summit for talks on a range of issues. shery: scott morrison will be speaking in a moment. what are we expecting him to
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address? paul: he is unlikely to address this matter. that is not to say he won't. do with parts to of an annual event for the committee of economic development in australia, called the state of the nation. he is going to announce an infrastructure project, $1 billion of infrastructure building. this is all aimed at kickstarting the economy post coronavirus lockdown. and it is likely a list of other projects will be fast-track, aiming to support more than 60,000 jobs. this conference, normally happens in person. this year, it will be entirely online. shery: paul allen there in sydney with the latest. let's get a check of the latest headlines.ash the richest man in asia has added more backers to his ever-increasing roster of investors. tpg will take a $600 million
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stake in the geo platforms. around 1% of the company. it is a digital arm of reliance industries and has whole -- has sold 22% in stakes to buyers including facebook and silverlake, valuing the company at around $65 billion. then state bank of india is seeking to recover two guarantees from struggling tycoon annual my gunny, reported to be reported -- reported to be worth a lot. he has been bailed out by his brother before and has until thursday to file a reply. aramco is moving ahead with its purchase of saudi chemical giant with block trades of about $70 billion over the weekend. more than 2 billion shares changed hands on sunday as
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aramco buys into the holding of the kingdom's public investment fund. key partase of it is a of aramco's plan to expand from oil production into chemicals, and other sectors. let's get a check of the markets . trading in new zealand is underway. we are seeing gains for kiwi stocks after four sessions of losses. we are seeing a little bit of pressure for the kiwi dollar and the aussie dollar. we have seen some numbers out of new zealand with services industries contracting at a slower pace in july with a psi of 37.2. take a look at sydney futures which is higher by four tech -- 5.1 -- by .4%. already at the lowest level in over a week. we had already seen two sessions of losses for australian markets. earlier, weioned
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will be hearing from prime minister scott morrison delivering a speech today. he is expected to give us an update on the deregulation agenda of the jobs package. and he will be focusing on the recovery of australia as well. we do have plenty to watch out for this week, including in the oil markets. we are now seeing wti and brent falling with wti at around the $35 barrel level. we have already seen crude posting the first weekly loss since late april. second fears of second wave infections which is pressuring markets around -- across the united states. u.s. futures are a little bit higher at this moment, -- a little bit lower at this moment. we are now headed to the opec-plus joint technical committee meeting on wednesday. we will have more analysis on the markets ahead with international equities. plus fx strategists joining us later on daybreak: asia.
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plenty more to come. this is bloomberg. ♪ ♪ ♪
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♪ haidi: good morning. we are counting you down to asia shery: major market opens. welcome to daybreak asia. our top stories is our -- markets face an uncertain start as fears grow of a second virus wave. beijing sheds a food market as an spec as infection levels spike. --di: new revelations emerge


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