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tv   Bloomberg Markets Asia  Bloomberg  February 4, 2021 9:00pm-11:00pm EST

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117 million dollars. >> ipo's technically off-limits. >> we plug into the growing appetite for electric cars, especially in southeast asia. the nissan vp joins us. >> records taking place, the dow to the russell 2000. let's take a look at what is going on in hong kong. the nikkei to do any five, -- 225, shanghai across our screen. this is of course after bite downs. jumping at one stage and tripling. the biggest internet ipo since
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uber. what is going on elsewhere. gdp data out of indonesia. that is what it looks like elsewhere. new york crude on its way up. on track at the moment for its biggest gain in some number of weeks. let's get you straight to some of the first word news. let's get you to karina mitchell. >> good morning. the rba says the australian economy is improving but interest rates will stay low. the recovery has been stronger than expected. speaking to lawmakers, the governor says the public -- positive signs do not disguise the fact there is some way to go. the infrastructure of stock and commodity markets was resilient. a treasury -- treasury statement
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says there has been agreement on the importance of the sec releasing a timely study of those events. janet yellen says it is imperative to uphold the integrity of markets and protect investors. australia risks further issues with china by calling for an investigation into alleged human rights abuses. whether treatment -- where treatment of minority muslims has drawn criticism. several detainees say they have witnessed systematic rape and torture in what they say are reeducation camps. china says the report has no factual basis. the regulator revoked cgtn's license and has no control over editorial output. this came as the telegraph
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reported three chinese journalists have been expelled in the past year. it is not known if the issues are linked. global news, 24 hours a day. powered by more than 2700 journalists and analysts. i am karina mitchell. >> get into the biggest market story. in hong kong, a short video -- 171% up right now during its debut. >> not too bad. it had been up as much as 200%. that is a tripling of the listing price. coming off a little but not bad. trading at 313 a share. we knew this was going to be a barn burner. it looks as if it is holding true. strong institutional appetizer
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appetite as well as retail investor demand. we are talking about if these numbers hold true, it will be the second best performing ipo in hong kong ever for a stock above one billion u.s. dollars. aunt was up about 50% in the gray market. retail is the more interesting one. we have 1200% oversubscribed for this company, the most popular for retail investors ever in hong kong. 1.4 million applications were received. that means one in four of hong kong's 7.5 million people. that is misleading. we are getting anecdotal evidence there has been an inflow of mainland money coming into the stock. we know about the capital controls and china, which wishes checks -- restricts individuals
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to a certain amount. they can invest in stocks and hong kong through the stock connect programs but that is a closed loop. meaning when you sell in hong kong, the money is repatriated to hong kong. people are getting their applications into local bakery ages -- brokerages. we have had other stocks that saw big jobs day one. probably seen mainland money -- seen mainland money coming. we will have to see whether the regulator will start coming in. juliette: watching all of the latest action. let's get more on the market action. mark, obviously quite
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extraordinary interest in the new issuance in hong kong despite volatility. this coming as we are seeing perhaps signs of america's labor market -- >> the strong data in the u.s. is very important. these higher oil prices. we have seen good data, good pmi's. it bodes well for nonfarm payroll data later on in the u.s.. there is a theme of reflation is back. at some point, that is going to be a problem for stocks. investors are focused on the fact the growth is coming quicker than expected. at some point, higher yields will be a problem but it does not look like it just yet. rishaad: one snippet which i
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quite enjoyed, asian stocks can keep a looking and keep on ticking. >> we saw in the u.s. all the major indexes made headway overnight. there has just been a record high printed. in contrast to asia, there has been a little bit of a pause recently, especially as the pboc is moving. slowing some of the gains. i think asia has been a little bit more of a pause recently but that will not last long. they are going to keep on powering higher and we see that in the ipo you cited. rishaad: do check out the bloomberg markets live blog for real-time commentary. we have nissan motor's.
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joining us on the plans to sell more electric cars and whether the chip shortage will affect that. juliette: a cfo in plans to expand production facilities and drugs to fight cancer. that is ahead. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network. sure thing! and with fast nationwide 5g included at no extra cost. we've got you covered. so join the carrier rated #1 in customer satisfaction. and get a new samsung galaxy starting at $17 a month. learn more at
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or visit your local xfinity store today.
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rishaad: a bit of news breaking. we did not see the s&p 500 hit record highs overnight. we have the futures contract at records as well. that has just been hit right
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now. let's have a look at in of it -- innovant biologics because they have won a regulatory nod from the chinese authorities. they manufacture monoclonal antibody candidates serving patients in china. tell us about this deal and what it means. >> yes, first of all let me give you a little background about our company. the company was established in 2011. we have developed a multi-integrated functional platform. including r&d, code development and commercialization capabilities. in a 10 year time, we successfully transformed the
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company from a biotech company to a biopharmaceutical company. leveraging the platform, we currently have 23 clinical stage developments. we have big volatile, biological products on the market. including the -- product. we saw last year, more than 2.2 billion rnb, an increase from the previous year. the company is focused on research and development, as well as collaborating with international giants. such as eli lilly, bosch, insight, anderson's and other huge pharmaceutical companies.
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internet biological companies. as well as institutions. along with those collaborations, we should be able to provide drugs, licensing, as well as develop better drugs for the patients. rishaad: what was your take? there is fierce competition in a cancer drug. the prospect of advanced immunotherapy being part of a procurement bidding process. according to some people, it could lead to a 50% fall in average prices. first of all, it is important there are a lot of patients in china that need this kind of drugs. with this drug introduced back
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in 2018 by more -- merck and bms, and later by a company like us as well as others, currently i think there are about six companies providing not the same but related products. two providing other related products to the market. the market expanded substantially. the rdl, -- we continue to -- we only scratched the surface. juliette: scratching the surface, what is your thought on trying to become a major player and the developed market, becoming a global biofarma
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company? we have seen a major focus on health care in the last 18 months or so. how is your company faring in terms of the prospects of becoming an international pharma company? >> i think it is important to realize a lot of us need to develop with a corporation with international pharma. our first product, it just recently was licensed out to eli lilly for global entry. we will continue to develop products with the possibility of google penetration -- global penetration. we believe along with international coverage, we should be able to provide better drugs for everyone in the world.
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juliette: we just have a line flashing about your share placement and the fact you raised 610 million dollars a few weeks ago. tell us what you are planning on doing with that. i guess it is going further into r&d and conical trials. >> yes, we currently have our operation and china as well as in the u.s. and the u.k. we will further these developments overseas as well as look at possibilities of licensing here, mergers and acquisitions. look for collaborations and developments to speed up our process of product development. juliette: we are looking at well -- as well as near-term catalysts driving your company forward. what are you looking at? >> we just announced days ago in
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terms of the latest approval of our first line. in china, a new indication -- we look forward to three indications to be approved right now, pending for approval, including a liver cancer indication. we are also looking forward to our collaboration with eli lilly to bring me product quickly into the international market. further to that, we are also looking to new developments. i mentioned we have three in development right now. we have quite a lot of clinical products, all which could be first in class, and we look forward to seeing both products brought to the clinical stages. rishaad: good stuff. romney, the executive erector and cfo. of in event -- innovent.
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just got indonesian numbers. gdp, 2.19%. big contraction taking place in the indonesian economy for the fourth quarter. 2.3 percent down with the expectation. in essence, we have at the moment a contraction for the full year. the first we have seen since the asian financial crisis. that is currently the position for gdp, taking a look at the quarter on quarter numbers. 4.2%, the decline. we were looking for a slightly smaller number for indonesia. there you have it. juliette: continuingsee the effects of the pandemic. it continues to roil big oil with shell the latest with
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earnings below expectations. we are going to hear from the ceo next. this is bloomberg. ♪
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juliette: it has been a painful year for shell, the words of the company's ceo. they reported net income short of expectations. speaking exclusively to bloomberg, he said the numbers are still resilient and he does expect will supplies to tighten as the economy recovers. >> the year was a very tough year, let's be honest and a painful year. >> how come earnings missed expectations? did the analysts get ahead of
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their skis? or did you have last-minute accounting changes that supplies -- surprised them? >> it is probably a combination of factors. $.4 billion versus .6 billion dollars. the absolute delta is very small. it is very difficult. with a lot of these adjustments. we did have a number of adjustments, that is completely right. i think the street did to come -- did a good job to come as close as 150 million dollars. if you look at the whole year, i think it is probably more sensible, $34 billion of cash. that is the better measure for us to be measured in. it is a credible and resilient performance. on top of it, i would say the countermeasures we took earlier in the year, when we said we
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were going to find 8-9,000,000,000 dollars of cash to help us in these difficult times, we delivered 11.5 billion. i think if you look at operationally over the year, i think our staff did remarkably well and i am room proud of them. >> let me ask you about how shareholders have received the messaging. you took a historic decision to cut the dividend, that was last year. a couple of quarters later, you raised it modestly. you committed to further buybacks. have investors kept with you? what has the feedback been? >> there is a range of reactions.
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i think nobody and certainly not the company welcomes the need to reset the dividend. at the same time, it was necessary and inevitable. not only preserve the financial resilience of the company but the long-term future of the company. >> capital expenditures are at historically low levels. do you think the sector is investing just enough to avoid a supply crunch? could we see a spike in prices as a result of this phenomena? i think it is a good question. at the moment, we see pretty good oil prices, i think it is approaching $59 today. it is much more driven by short term factors. demand is not where it was a year ago. we see a lot of discipline from opec-plus. the market is being held in balance quite well.
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slightly longer term, we are not the only ones who have cut back on capital spending. we went from a plan of $5 billion to $18 billion. that is a $7 billion drop. we are not the only ones. fast-forward a little bit, i would imagine in the second half of this year, you are beginning to see not only recovery but a little bit of tightness in the market appearing. i believe that next year, when the recovery is probably complete, and in the years after, it could be we see a tightness in the market that will provide for more upside pressure on the oil price. rishaad: let's have a look -- that was the shell ceo speaking to matt miller and anna edwards. let's have a look at what is going on with the regional markets. following record highs coming
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out of wall street. we had s&p many moving to record highs. shanghai is up. shrugging off some of the bad news coming out of the economy. we have the kospi up. a quick look at japanese activities. japan household cutting spending, edging down. this is before the spread of the coronavirus. a state of emergency has been cold. downward trajectory with retail spending. the topics up. yen has continued to weaken. let's have a brief look at some of the comedies making waves. certainly carmakers have been very much at the four. shares of these automakers up following a nikkei report apple is in talks with six automakers in its development of electric vehicles.
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mazda, surging after boosting its operating income. ntt data, offloading one of the companies there. at the moment, up 9.4%. there we go. beating estimates in the third quarter. this is bloomberg. ♪
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juliette: it is 1029 time -- cor inna: i'm corinna mitchell. the senate trial is set for tuesday and he is disputing factual allegations and critical facts at issue. lindsey graham said it would be a nightmare if the former president would be to testify. using virus numbers in the u.s.
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are allowing states to relax some curbs. rhode island will let weddings host up to 50 guests. german chancellor angela merkel is warning against easing too quickly while france says it will remain, but there are no plans for another nationwide lockdown. over to japan, household spending slept for the first time in three months, even before -- slipped for the first time in three months. output fell, but better than forecast expected. the virus spread worsened considerably, so the consumer slump is deepening further. johnson & johnson has asked u.s. regulators to clear its experimental covid vaccine for emergency use, setting up what could be a quick review process and a third shot in the u.s. they say it will be ready to ship millions of doses immediately if the fda grants
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approval. moderna and pfizer have been given similar clearances. the biden administration is ending support for saudi arabia in its offensive in yemen, saying it's a move towards restoring american emphasis on democracy and human rights. the president told the state department the war has greeted a he met -- created a humanitarian capacity. they are continuing support for its defense. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm corinna mitchell. this is bloomberg. over to you. juliette: it is certainly a great day for investors, u.s. stocks hitting records, flowing through to a positive session for asian equity markets, on track for a weekly gain at 4%. there is one story and it shows
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the ipo up from the debut price and nearly tripled in its hong kong debut. we will get more on that shortly , australia's market up by 1%. gdp will rise 8% this year as the country rebounds from the pandemic. also watching this move in the dollar, the dollar spot index on track for its best week in three months, and a number of the majors hitting their support levels, the euro down to its moving average, the aussie around the 50 day, and u.s. dollar against the yen now showing resistance at the 200 day moving average. speaking more about this ipo we are watching, technology nearly tripling in its hong kong debut. over 75 million shares have traded, a high of 345 hong kong dollars. it was targeted at the high-end
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of the range, 115 dollars, and adding market captures this morning. rishaad: let's get more on this. intelligence has been crunching the numbers on this dramatic rise, of course asking whether it is sustainable. what a pop. tell us about it. >> yeah, it is the first time that investors are able to invest in a platform. tiktok, they been impacting our lives for some time now, and it's the first time investors can get their hands on it. i would say some part of that may be due to the value. there is nothing else that would give them that kind of exposure that they are looking to the newest trend that is coming.
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juliette: we were looking earlier at this, how long people are spending on the app. is it going to be a sense of user fatigue here? or is it going to continue to grow, particularly as we see the popularity, but also the fact that more smartphones have cameras, wi-fi flowing through to the fact it can be used more often? >> from the historical trends for the last couple of quarters, it looks like it is still rising. so we've got daily active users rising the past couple of quarters, time spent on the app, which is on average, 87 minutes per user per day, as of november last year. that number is still going up. like you rightly pointed out, smartphones in everybody's hands, with cameras, it's making it much easier for users to share videos and to consume
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video content for these busy people. they can use the fragmented time to look at these videos. and really, the traffic engagement that this platform has is the foundation of monetization, which in this case, is online advertising, e-commerce, and livestreaming. rishaad: but is that enough to justify the valuations we're likely to be seeing for this company? >> that's a great question. revenues are growing at about 50%, year on year, in the third quarter last year. most of that is driven by online advertising and e-commerce. livestreaming is an old revenue stream. that one is maturing. it's not growing that much. but on a 50% assumption,
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assuming that we go forward to 2021 with 50%, at the ipo pricing, we are kind of looking at a price of about five times, which looks to some really cheap. but after today's pop., we are looking at a sales number of 13 to 14 times. now, that maybe slightly higher than most of its peers. juliette: and it speaking appears, no doubt -- of peers, no doubt, what do we know about potential ipo's? > i think certainly, the success of the ipo's would motivate the wing to come to the market because it can see the demand for such investmentsj. and what's useful for investors,
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as well, is going forward regular, investors can get more familiar with the sector. they can get regular insight into the developments of the industry, which will help them when the wing eventually comes to the market. rishaad: tell me something. that's it, isn't it? you mentioned it at the beginning that this is the first time they've been allowed to get into a short video sharing app. the point is if we get bytedance coming out of the market, as well, how much does that affect this and how much does it compare overall with its major rival, and big arrival? >> -- bigger rival? >> yeah, that's a great question. it's got about 264 million daily active users. it's almost twice the size of
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quite show. it is conceivable when it comes to the market, some investors might want to shift investment from quite show -- kuaishou. when you look at the market share in terms of user numbers, bytedance has have their share of the video market and kuaishou has 20-30% of it. it's fairly stable and resembles the market structure of other platforms we're familiar with, such as social networks, whether one dominant, whether one number two -- i think kuaishou is here to stay. even if bytedance is dominant, is not going to wipe out user numbers -- it's not going to wipe out juliette: juliette:
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user numbers. we talk about -- wipe out user numbers. juliette: what about buying something online? talk us through potential growth there. >> the e-commerce part is really interesting. what they are doing is using like streamers to influence -- you can call them influencers -- to influence their followers through life -- livestream show to buy stuff. it's built upon trust in the company only takes conditions from the transactions and that's not managed in the business. it's fast-growing. it's a new trend. it's similar to tv shopping. we know it's something that works and it will likely be achievable going forward.
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juliette: bloomberg intelligence senior analyst, they send link with us on the ipo. coming up, our exclusive interview with nissan motor's. we ask about southeast asia's market. that is next. this is bloomberg. ♪
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juliette: a new study commissioned by nissan motor's shows consumers across southeast asia continue to show high enthusiasm for electrified vehicles. 37% of drivers say they will consider one as their next car purchase within the next three years. joining us is the regional vice president for asean. thank you for joining us. i guess to start with, tell us how you been faring in what has been a difficult year, with many people staying at home, and not a lot of demands in new vehicle sales. >> well globally, they are up and down because of the pandemic. but we continue to see down for interment -- down flow in terms of the market demand. it depends on how the market
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moves. the volume goes up and down depending on the country we're in. juliette: and i guess as we're talking about the pandemic comes the thought about how we're going to live moving forward. that's why we've seen an increase demand or interest in electric vehicles. how many of these do you expect to come out of the asean region? >> well, asean is one of the reasons electric car is a buzzword. starting with the government, still there is a challenge with the infrastructure to really allow the pure electric vehicle to thrive. so, we are working with a combination of rolling out the pure electric vehicle and what we call our technology keep our -- e-power. we still this -- see this region
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steadily increasing. one is having the infrastructure readiness. in the meantime, we have the technologies to bridge this growth of asean in the community. juliette: i suppose you also need regulatory changes in government support. what do you think needs to change in terms of being more able to sell some of these vehicles within the region? >> well, given our experiences globally, the number of charging stations, for one. just recently, in japan, the number of charging stations exceeded the number of gas stations. that illustrates what it takes to really rollout the ev in the country. asean is no exception. i see much more stronger
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partnerships between automotive makers and the government to promote and enhance the infrastructure that are necessary to boost the sales of the electric vehicle. rishaad: with that amount of optimism and the government has been very, very much needed in order to set up a framework that is needed to support ev's. which part of asean is lacking most and what needs to be done? isao: well, i believe, again, there's a combination of clear policy, starting with the incentives and infrastructures. i believe in this region, governments are leading the way to try to implement the policies that allow buyers to have more of buying ev, but as well as it
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is important to have the incentives that allow consumers to take the benefits out of ow ning electric vehicle. rishaad: ok, then there's another point here, as well, and many countries do ponder this. you get an electric vehicle, it doesn't pollute the streets. but where the power source is to charge these ev's, how much of a net net carbon decrease is it? isao: well, i'll need to go with the experts on this. but yes, it is true, making the battery definitely generates the co2 emission. but with the combination of pure electric vehicles, that limits the pollution. and i think in the major, megacities, one of their combats
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we are fighting as a society is both air pollution and the noise pollution. juliette: how are we going in terms of assembly and operations? we had unrest in myanmar, where you have operations. also, i understand you are closing in some markets like the philippines. isao: yeah, so in myanmar, we are observing the situation developing very carefully. we have a strong partner there that are producing cars for us. we had a couple of days of stoppage just to see and monitor the development, but recently we started to produce our cars. but we are carefully monitoring the situation. for the philippines, it was part of the nissan transformation plan. we had the parton -- partner that had been introducing our cars, but we had decided to switch to importing cars, exporting cars to philippines. it doesn't mean that we are
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rather reinforcing philippines. we have a plan to roll out new models this year, starting with the pure electric vehicle. that also demonstrates meeting the demand and the wishes of the customer. so, we are reinforcing our strategy for philippines. rishaad: isao, let's just change away with what's going on in the eu and demand for autos. let's talk about the chip shortage, which has been really hitting all carmakers, talking globally here. how bad has it been and easy visibility for when it gets better? isao: well, not only nissan, but as you say correctly, it has the necessary alignment that we are making in terms of the global production. we have already adjusted some of the production numbers or
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capacities due to unavailability of the chips in japan. we foresee the situation would improve towards the middle of this year. we are working closely with the suppliers as they speak. rishaad: isao, thank you so much for joining us there. isao of nissan motor talking about the chip shortage. all right, we've got an exclusive interview with the ceo of 23 and me, and the consumer dna testing company. that's coming up ahead. this is bloomberg. ♪
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rishaad: this is "bloomberg markets." 23 & me is going public. this deal to merge 23 & me with spacs, bloomberg spoke with the ceo and richard branson -- and founder, richard branson, about their future plans. >> i've never had that glory and
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that vision of being a public company in my mind. so, a couple things triggered for me, one, we're at a point in time where the platform is ready to take of, explode in terms take off, explode -- take off, explode in terms of the consumer side. one of the most important pieces of advice, who your investors are matters. and so when we thought about how we want to raise capital and whether we want to do an ipo force back, the idea or spac -- or spac, the idea of capital, it was a slamdunk. the first core value we have is think big. when we think about richard, think about how big he thinks. >> richard, let's talk about that big thinking. tell us how the deal came together on your end. richard: well, i've known anne
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for many a year, and found her delightful and invested in her company right at the beginning, and saw the wonderful team in the great company she built and the great brand that she built. i even discovered that i had a great, great grandmother who was indian. that was an absolute delight. every time i go out in the sun, i don't feel like they have to wear as much sun cream as most people. but anyway, just really impressed with anne, really impressed with the team, really impressed with what has been achieved, but much more important, what can be achieved. emily: so anne, the dna testing part of the business has been slowing down. but all of that genetic data is so valuable. you're using that for drug development.
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you've got this new covid severity test out, which will tell you how vulnerable you are to a severe case of covid. but hopefully covid is short-lived. what do you see is the biggest drivers of long-term growth? anne:, i absolutely believe one day, everyone is going to have their sequence.everyone is to be genotyped and you're going to have a health care system where you manage the things that are preventable. so, i think secondly, we really think on the therapeutic site, the ability -- side, the ability for us to pull this data, the insights we have, and make treatments that are founded in genetic discovery. emily: richard, any plans to raise more spac's or get more personally involved? richard: it's possible. i mean, through getting out there and talking to a lot of
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companies, there are a lot of very interesting companies that are still private that would like to go to the market. but we haven't decided whether to invest in specs or invest in them directly, or invest in a little bit of both. so, we're definitely open to the idea and i'm sure we'll explore it. and if we can find people like 23 and me, that are doing good in the world, y eah, then it's likely we'll get out, invest in some form or another. emily: you worked on the virgin deal. did you see is spac king persona coming? people are calling him spac jesus. richard: [laughter] i'm not sure whether jesus would be the right word, but he may be flattered by that. i don't know.
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he's an extraordinary individual . he's done extraordinary things. good on him. he's managed to bring different companies to the market. and done some extraordinary things in his life now. as far as i'm concerned, he still a very young man. he's got lots to achieve. ♪
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♪ juliette: is almost 11:00 a.m. in singapore and shanghai. welcome to bloomberg markets: asia. i'm juliette saly. rishaad: i'm rishaad salamat. shares tripling on its trading debut. the company is now valued at
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$170 billion. juliette: are we seeing a comeback for the greenback? the dollar index on track for its best week in three months on signs of an improving jobs market and shortcomings. rishaad: the reserve bank of india meeting, expecting no change. the focus is on how it reacts to the government's spending splurge and higher debt. juliette: and in for the long haul, daimler's indian truck unit fears the worst is over. we'll be joined exclusively this hour by commercial vehicles. a quick check on the markets. we certainly taken that battered from wall street and run with it, asia stocks all tracking higher, on track for a weekly gain of 4%, the best we've seen in around three months. we've got the msci asia-pacific index up about .7%. it has been all about kuaishou
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technologies debut. its valuation jumping from about $100 billion just in the first hour of trade, $170 billion. new york crude also in focus, oil set for its biggest weekly gain since october on the confidence opec-plus is committed to restricting mobile supplies. we've been -- global supplies. majors are lower, the aussie hit by commentary from rba governor low. although he did reiterate the economy is on track for a sharp recovery, saying gdp will rise a percent this year -- 8% this year. rish? rishaad: let's look at what's following the regional trend. the set is up .7%, the thai baht declining for a third day now
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against its american counterpart. we've got data that may show inflation in january, seeing that certainly something which could royal markets, the nifty for tense of 1%, the kospi -- nifty up .4%, this on the day we get an interest rate decision on the reserve bank of india. the economists we talked to suggest that will remain the case. ok, let's find out what's going on with the first word news. in terms of janet yellen has hit the ground running. let's get that story from corinna mitchell in new york. corinna: thank you. u.s. financial regulators say the infrastructure was resilient during the recent volatility and trading. spurred by retail investors, the treasury statement said there is agreement on the sec releasing a timely study of those events. it follows a meeting convened by
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janet yellen, who said it is imperative to uphold the integrity of markets and protect investors. meanwhile, easing virus numbers in the u.s. are relaxing -- allowing states to relax, and allowing james and restaurants to raise capacity while rhode island will allow weddings to host up to 50 guests. angela merkel is warning against easing too quickly, while france says it will remain, but there are no plans for another nationwide lockdown. spending in japan slipped for the first time in three months. output fell, but better than forecast better than a 1.8% drop. the virus spread has worsened considerably, however, so the consumer slump is deepening further. australia risks further issues
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into alleged further rights issues. the treatment there of minority muslims has drawn international criticism. several former detainees say they've experienced or witnessed systematic rape and torture in what beijing says are reeducation camps. china says the reports have no factual basis. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm corinna mitchell. this is bloomberg. juliette: asian stocks are trading higher after u.s. investors see it is to a new height. the fed left rates unchanged near zero and the president told us exclusively it is too early to start tapering while the coronavirus is ravaging the economy. >> i can tell you that it's too
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soon to speculate. and until we see the path to getting past this virus, it will be difficult to make any prognosis about when that time might come. juliette: for more analysis, let's bring in the investment senior research analyst, joining us for market context. great to heavy with us, james. incredible to see this move we are seeing in equities. part of that story is the recovery story to the vaccine rollout. it looks like the americans jobs market is healing somewhat, too. you remain a buyer when we're continuing to see these new highs? james: i think we remain very selective and cautious. definitely, liquidity has placed the market at a different level. so, be mindful of that situation .
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we are trying to be a lot more selective in our capital allocation. juliette: we've been talking about the liquidity field rallies, as well, and we saw some market turmoil. we sell retail trade fuel frenzy and the likes of gamestop. the question we're asking guests today, would it be too big to buy if you go back to the theory of the default position? james: i don't think i can really put numbers at the moment. and as the news highlighted earlier, you know, the fed still maintaining the rates low, i think that's going to continue for a while. so, i think it's too early to call that, but you still have to
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be mindful that we are in a very unusual situation, especially since after financial crisis, we have these different factors, such as low rates, etf's, momentum, and all these types compounding the market fabric. so, i think the investor has to be mindful of that situation. i'm not saying that one should avoid that completely, but you have to be really mindful of where we stand and try to be selective. juliette: and being selective, obviously your focus is looking at a lot of the asian markets, and particularly in korea. there's been a huge run-up in this market. is that one where you are seeing growth? or are there concerns you could see foreign outflows when you've got concerns about valuations for some of these stocks? james: korea has been a sort of
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an abandoned market for a long time, especially since the financial crisis. and we are only starting to see the money flow, especially from local koreans, historically koreans were very secure force for real estate and their exposure to equity has been lagging. so, you know, we still see that flow could be continued. and if you look at the quality of these companies, the korean companies, i think they have a lot of innovations and changes in their business model happening, and the merits of the korean market is that because it's been depressed a lot, you can really find cheap stocks. but that has some really interesting innovations underneath it.
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rishaad: james, tell us a little bit about financials in korea. according to you, they are trading at ridiculously cheap valuations. i put it to you they are cheap for a reason, and that there's a possibility of a lot of bad loans. what is your thinking? james: yes, there is a reason why it's very undervalued, and that would be mostly pertaining to the government regulation. it's been very stringent, especially in terms of shareholder returns. their payout ratio is about -- this year, about why percent -- -- about 20% -- the financial banks, the dividend yield will be about 5%. so, compared to countries like u.s., where you are essentially paying out almost 100% of your earnings and your yield on that is actually would be around less than 5%. so, that's the situation.
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and i think, fundamentally, korea's situation is not that bad in that the covid-19 situation is relatively well-managed, and the bad loans you're referring to, the korean banking system has been a lot more about secured loans. so, that will be a lot of the buffer. fundamentally, the korean banks are pretty strong, but this containment in payouts has been what's hurting the shares. and also, you have to be really selective, as well, because the quality of management in the business can be quite different by companies. so, again, being selective in that part of the market is also very important. rishaad: james, good stuff. still to come this hour, we
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focus on india ahead of the reserve bank of india interest rate decision. and don't miss our exclusive interview coming up with the head of daimler india commercial vehicles. juliette: and if you are expecting live to return -- life to return to normal, think again. it will take seven years to vaccinate enough people. we'll have more on that next. this is bloomberg. ♪
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rishaad: breaking news coming through, robin hood, the trading platform saying they will no longer limit buying amc or gamestop shares. that's just coming through at the moment, this after we had the company increase limit and buying the shares. now they are saying there is no
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limit. there we have it, coming through the trading platform, robin hood , being blamed for quite a lot of the retail sentiment we did see this week and last week. let's move on and have a look at vaccination rates, the pace picked up for many countries, the u.s. aiming to deliver covid-19 shots to 75% of its population this year. other countries, such as canada, need almost a decade to reach that milestone. now, these are startlingly different trajectories and show how uneven vaccine campaigns are. let's talk to emma o'brien. we've got israel and the u.s. and the u.k. leading the vaccine race even though joe biden's promise of 100 million vaccinations have been pretty much out of reach at the moment. emma: yeah, i think it's no coincidence that particularly to of those countries you just mentioned, the u.s. and u.k., have very devastating outbreaks, top of the list type stuff
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there. so, the political pressure to do stuff is there. and the u.k. being the first western country to authorize covid shots for emergency use. so, they're going really hell for leather on their campaign. the prime minister is making it a mission. it's a smaller country, so it's easier, and they really doubled down on it. if you compare it to asia, where covid is broadly under control, with some exceptions, that impetus and haste is not quite there. juliette: and,, we've heard -- emma, we've heard the french president emmanuel macron telling china to be more transparent. tell us more. emma: this is an interesting one, right? in the past, vaccine makers and companies were releasing every single bit of data about their
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shots and products, right? what has changed is their level of demand for that information, particularly from the markets during the pandemic. and we have seen a disparity between what the chinese, particularly the state backed company, which is pretty much front and the drive here, compared to what the western developers have been releasing. you also have the fda, for example, that puts this data on its website, so a very different level of transparency to china, where you get a profession -- or comment, sorry -- from a press conference, the vaccines are safe, and nothing more. they have released data and are tending toward releasing it to journals rather than the stock exchange or to journalists. but the overall picture is of less transparency, yes. rishaad: emma, i saw a wonderful
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cartoon the other day, a woman walking into a surgery and asking the doctor, when will this covid be over with? and he shrugged to me, and said don't ask me. as a journalist. i'm going to ask you. when will life returned to normal? emma: i think covid will always be with us. it's not one of these diseases we can eradicate. i think that's clear. if we're looking at current rates of vaccination, it's looking like a little while yet globally, some countries going faster, and others slower. juliette: all right, our asia managing editor, emma o'brien, in beijing. we're going to have plenty more ahead. stay with us. this is bloomberg. ♪
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juliette: microsoft says it's meeting the challenges of remote work within of products. the ceo spoke exclusively to bloomberg technology about importance of worklife balance and how to avoid burnout. >> one of the things that really got upended across industries was how do you connect people? if you have someone on the front lines and then in engineer working from home, how do you connect? so, the team's growth was not just about knowledge workers collaborating. but in fact, it was about helping front-line workers and knowledge workers come forward to keep business continuity going. i shutter to think what the economic activity would have been, or what the state of services we have today would have been, but for the state of today's technologies, and the
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cloud architecture. and teams, clearly, has been a massive growth story for us, but mostly because of the context of the constraints and how to overcome them. emily: now you're on to what you believe is the next massive line of your business, export -- employee experience. tell us about this product. >> the thing that the pandemic has put, really shined the light on, is how important the experience for the employees is. when you're remote, you want to stay engaged with your business and sense of purpose and mission. you want to collaborate, as i said, between the folks on the front lines, the knowledge workers. you want to start learning, employees join, how do i build that knowledge capital, my learning from others when i don't have some of the same social structures of the workplace? i need to be able to find them online, learn from them, as well
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as the learning content needs to be learned, the workflow tools. and last thing we've also learned his well-being. some of the practices we had, even the commute practices, or transitions that helped -- were transitions that helped clear demarcations between work and life. those have gone away. we've had to introduce things like virtual commutes in order to help people with transitions. putting these things altogether, employee engagement, collaboration and well-being, into one experienced platform is what it is all about. this represents a new category categorization moment. when you look at the journey we've been on with microsoft 365, we started with individual tools. it became a collaboration suite. now we think it's going to get into any space around employee
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experience, holistically thinking about productivity, not just narrowly as output, but all of learning and well-being and collaboration. emily: so, if you spend your whole day in teams or word or outlook, are you putting all those in one place? satya: in fact, it's the exact opposite, which is to say use the tool you are using for your communication needs. and then in the context of that, let us bring in the other people you want to work with, the learning content that's going to make you more productive, the well-being nudges you need in order to make sure you have the transition. so, that's the main purpose of an employee experience is to not use one more experience you need to go to, but to bring an experience that you need in the tools that you are using every day as part of your work. emily: how big could this be? could this be your next $10 billion business? what is the next market?
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satya: in some sense, the way i think about it is, 30 years ago, we introduced -- or the world was introduced to resource planning as a category. it is interesting to go back in history and see accounting software always was there, and then there was manufacturing software. and what erp did was to bring together, for the first time, the accounting and the line of business -- in that case, manufacturing. hr software is there, or human capital management software is there. but it's more about what really happens in the hr, or people operations, to the entirety of the business, whether it's in finance, marketing, or engineering. we think this can be, in the years to come, decades to come, we'll talk about it like a crm or capital category. rishaad: microsoft chief
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executive speaking to bloomberg technology's emily chang. it is that time of day, time for morning calls. we can get over to our markets expert, sophie kamaruddin, with the dollar trading at highs. our strategists positioning themselves after so many of them were short. sophie: over a goldman, sticking to the view -- at goldman, sticking to the view that it's getting a hit. and they have added two long dollar positions, one against the swissie, one against the dollar, the worst weeks in september. given its own ability to the greenback's generation. over at dbs, their outlook was downgraded for the korean won, trading at 1140 this quarter, but saying it's too early to call the top. that's when dollar-yen watching
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for a decisive breakup, that a strong u.s. jobs report may accelerate short dollar recovery momentum. that could push the yen towards 106. juliette: it's been an extraordinary week for equities. what's been moved by? sophie: hsbc warning it will be difficult for the market to absorb outside borrowings from the government. with set dynamics in focus, india being highlighted as one of 11 emerging countries that are at risk of losing the high-grade status when it comes to the pandemic. rishaad: thank you so much for that, sophie kamaruddin looking at the morning calls. let's look at markets as we head to the china lunch break. one of the stocks trading here in hong kong, kuaishou,
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extraordinary. there we go. shanghai come up .6%, msci 300 over 1%. they're out for lunch. this is bloomberg. ♪
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>> just over 15 minutes to go until we get the start of the trading day in india. looking forward to the reserve bank policy decision. expecting markets to show a hint of caution. inflation -- consumer prices could ease to 4.6% in december. we are looking for any
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objections on growth projections. the are b.i. -- rbi has already projected shrinkage. will the are b.i. -- the rbi announce a pushback? government exciting a little more clarity from the central bank. of course, you can follow all this in our top live blog. juliette: let's get you caught up in the first world news. warding interest rates will stay low for quite a while yet. the governor has been stronger than suspecting. the governor said the positive signs do not disguise the fact
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there is still some way to go. johnson & johnson has asked u.s. regulators to approve its vaccine for emergency use. they say they would be ready to ship millions of doses immediately if the fda grants approval. moderna and pfizer have been given similar clearance. former president trump is rejecting a demand by house democrats to testify about his conduct regarding the stop -- storming of the capital. trump ally lindsey graham says it would be quote a nightmare if the former president were to testify. the biden administration is ending support for saudi arabia and its five-year offensive in yemen, saying it is a move toward restoring american emphasis on democracy and human rights.
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he told the state department the war has created a humanitarian and regional catastrophe. we at -- riyahd responded by welcoming assurances for its defense. let's check in with markets. it is a positive session after we saw u.s. markets hit records overnight. up 1.4% in tokyo, south korea adding to its gains. australia's market up 1%. hong kong, up 0.9% in the morning session. a lot of focus on this huge ipo we are city -- seen. adding over 100 billion dollars of its market cap in the first hour or so of trade as we saw huge demand. $345 and hong kong in terms of
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its ipo price. it was already at the high-end of $150 hong kong. the biggest internet ipo since uber. rishaad: we have the bank of england, for one thing. it roiled currency markets after it told banks to be ready for the move to negative rates. it did signal that is not likely to happen. it is taking a rapid rebound in the economy. the question is what is next for other policymakers in australia, india, and the u.s.. let's get to kathleen hays. what were the key takeaways from the reserve bank of austria governor's phil low's speech to parliament? >> the rba is pounding down a message. he spoke to lawmakers, he spoke
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earlier in the week. the rba released its report. he said rates are going to stay low for a while. he said again he does not see rate hikes until at least 2024. the world is recovering from the pandemic and so is australia. part of the argument for where he stands on rates and the currency are necessary because look at this chart. the aussie dollar up 34% from its low last year, even as rates stayed low. can you imagine if he started to taper the bond purchase? it would go right through the roof and hurt australia's exports. also saying the economic recovery is past the initial step -- snapback phase but we have a way to go. the rba forecast is by midyear but tapering off. pulling off to about 3.5% by the end of the year. does not see inflation may be
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getting up to the 2% target until 2023 or later. he says there is no decision on shifting the yield curve control the target. they have extended those bond purchases, $100 billion more they are going to be purchasing from april to october. that is some thing else that remains for the future. juilette: from the rba to the rbis, the sense is no rate cuts. that is being challenged by a small faction of central-bank watchers. >> we know india's economy is digging out of a deep hole. at the same time, this big budget that was passed, gigantic, up to 9.5% of gdp. this is why many rbis watchers are saying they will not cut the key rate again. they will see if it succeeds in starting to lift the economy. bloomberg economics is taking a look at the fact there is a big
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job -- drop in gdp beer. inflation is trending lower. that would be one reason to go ahead with a rate cut. there have been many rate cuts over the past year, why not do more? it is going to be an interesting moment. a minority for sure looking for that cut. if we get it, it could excite the market. rishaad: you talked with a top fed official that defended the open market committee's decision. even as critics say it is this super easy monetary policy creating liquidity. it is creating moves into risky assets likely sell with gamestop. >> the president of the kansas city fed said until we get past the virus, there is nothing we can really even do to start taking about tapering.
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at the same time, she is a person who came up in the banking side of the kansas city fed before she became the fed president. i wanted to know what she thought about the potential for financial instability. here is what she said. >> i think it is true when you have ultra easy financing conditions for a long time, it can create incentives to reach for yields, eight can cause some to miss price risk and markets. the real priority has been addressing the extraordinarily shock. the federal reserve right now is far away from what i would say is achieving its objective. >> of course with virus cases following, the hope of the vaccine, and even just with the
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government stimulus package passed at the end of the year, the economy could be on track for 4-5 percent gdp growth by the end of the year. juilette: kathleen hays, thank you so much for keeping us updated. we are getting some news out of the central bank in the philippines to the governors saying -- it does not necessarily need monetary policy response yet. he is saying it is not going to be needed until we see the second round cpi. we have seen cpi to settle in the 2%-4% target over the policy horizon. certainly the rise in food prices, certainly in pork which was capped by the president, has been driving up inflation. the governor saying the uptrend in cpi is temporary. rishaad: we are asking how
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india's scrappage policy, automotive, could be a boost for daimler. we have our exclusive interview with the chief executive. this is bloomberg. ♪
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rishaad: we had india earlier
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this week outlining its latest budget. personal ones other than 20. our next guest believes it is a move in the right direction toward sustainable mobility. let's bring in the ceo of daimler commercial vehicles, the indian subsidy. what do you make of this scrappage program? >> thank you for inviting me. before i jump onto your question, let me -- can you hear me well? rishaad:rishaad: please carry on, we lost you for a second. >> they have invested about $114 billion in the market. in this short time, we have put about 100,000 trucks and buses
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on indian roads. the production is more than 90% local. we export them to more than 50 countries around the world, about 30% of revenue. if you talk about the policy of the indian government, we are a good example of making it in india. coming to the scrappage policy, we believe it is a welcome step. it is exactly what india needed for a long time. what we need is an end-of-life vehicle policy. that is more holistic. we have been advocating for this policy for quite a long time. we have millions of vehicles on roads which could have seen their end-of-life long time ago. they need to be replaced with more safe, comfortable vehicles. we are talking about the demand
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in the auto sector. what is more important is we make our roads safer. it will reduce pollution and help us save on fossil fuels. we help -- rishaad: i want to get to, is there the capacity to deal with these numbers? the other thing is how long is it they come to you to buy their trucks in the future as opposed to somebody else? how does it affect your demand to profile? >> talking about the demand, we believe it will definitely -- demand. we have enough capacity to lead this demand. when the policy is rolled out, we are expecting some videos in the next few days. we will be ready to ramp up -- as needed. what is also needed to make this policy successful and embrace the demand, i will give you some
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numbers. we have roughly 5.1 million motor vehicles more than 20 years old. 1.7 medium and heavy commercial vehicles which have more than 15 years. even if we are able to take 50% of them off, we could save 800 million tons of crude oil and bring down the seat oh levels every year. we would definite need organized staffing centers built in the rentable of recycling vehicles. they must be legally backed and in compliance with pollution norms and the state they are located in. we will need a robust sector to deal with the vehicles when they are taken for scrapping. a lot of work has to be done to make the successful and get the desired benefits. rishaad: what about this policy change?
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it is more likely to be benefiting truck makers than commercial -- sorry, private vehicles. how does this policy change affect dime will -- daimler's policy decisions? >> we do not see any immediate impact on our investment decisions. we have enough capacity to serve the demand which will come. we will see how far this policy goes. we will look at investments. juilette: let's talk about electric vehicles as well. we are hearing about the ecb launching an electric truck. >> as daimler india, we are part of the global daimler network. technology daimler is developing, they have launched electric vehicles in many of the
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markets. one is being sold in europe, japan, and the u.s.. i am confident we will join with market demand which we see in india. juilette: we were speaking to nissan, talking about huge demand for ev's in southeast asia. are you seeing enough being done by the governments to help push this move towards ev's in india? >> the government is doing a lot to facilitate this transition. lent me mention some of the steps they have taken. if you visit a major indian city, you will see vehicles with a green number plate. that is to make them more recognizable so they can reap some benefits. that is a small example. the bigger example is the speed india launched -- faster
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adoption an manufacturing of hybrid and electric vehicles. this scheme was designed to support development of the technology. as well as to create demand. this scheme is already running. the government allocated 1.3 billion dollars to this scheme. there is another initiative this government is doing. an organization called energy efficiency services limited. the job is to -- for the buying of vehicles by the government. they have issued tenders for about 1000 ev vehicles in india. individual states are coming up with their own ev policy. manufacturing of electric vehicles. and so they can easily adopt them. i believe there is a lot
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happening but we have to be careful about when is the right time to scale it up. creation of charging centers are prerequisites to make that happen. juilette: are you excited about potential rebounds not only in your company and your sector but also what we are seeing across the whole of india? do think the government didn't do enough to help rebound the economy from the depths of the pandemic? >> i am frankly quite excited. first of all, 20/20 was a very challenging year for everyone. particularly for the medium and heavy commercial vehicle sector in india. in spite of that difficult market, we doubled our share of the market in 2020. i am really excited because with the launch of the access -- -- we have gotten overall response
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from the market. they cs is a technology player. we have brought the most experience to the sector. talking a little bit about -- i strongly believe -- juilette: the worst is behind us. do you think the rbis leads to a rate cut? >> i don't think so. i think they need to carefully balance inflation versus rate cuts. the government of india has taken huge steps to increase the spending which will lead to a rebound in the indian market. juilette: we thank you so much for your time and insight. of daimler commercial vehicles. the rbis certainly and focus as we check in on -- with indus is trading at records, getting some
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momentum as we see the open. the syntax -- the nifty banking index doing a lot of the heavy work. spi surging to a record after its third quarter estimates beat profits. the state bank of india certainly a front runner in those strong numbers. rishaad: we have got -- restarting a hearing on the appeal by a future retailer. early this week, the court restrained futures from making that move. that has been quite a battle with amazon, juliette. juilette: the u.s. future group,
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whose assets are billions, recently agreeing to buy for 3.4 billion dollars. amazon saying futures violated a contract and would like to halted. the moon by firms that it would collapse itranion were to fail -- mumbai firm. rishaad: we have heard news, jeff bezos, stepping down as ceo. there was a huge bet in india, with i believe dubai into the stood flagship futures. that was of course down to india as they went into lockdown in march. the hearing in dally -- delhi
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later today may shed some light. juilette: certainly will be one to watch. coming up, stock and commodity markets are resilient, say regulators. the sec is about to release a study on the gamestop frenzy. we will have more on that next. this is bloomberg. ♪
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juilette: now to the latest on
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the retail trading mania that pushed previously in stocks such as gamestop. gamestop has taken a brutal tumble, down more than 80% for the week. janet yellen held a meeting with regulators to ensure greater oversight. let's get to su keenan. let's start with that plunge in gamestop and the fact investors seem to be turning to new names in biotech. >> they are looking at small drug developers. check out the past five days. gamestop down 42% in a week of heavy losses. bullet to lily resorted -- volatility resulted in drops of $30 billion in one week. other reddit stocks like amc down double-digit. look where a lot of the traders have gone, to biotech spirit biotech's doubled today on these
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charts. before pulling back. the third was up 33% before reversing. it shows the volatility. the reddit traders continue to push stocks. the restrictions robinhood has faced in stocks caused a lot of the decline. robinhood has lifted all restrictions including in amc and gamestop. rishaad: tell me something as well. this whole mania, the after math. we have had janet yellen talking about this. what impact does she hope to have. >> she wants to make sure the regulators are looking to make sure the markets are fair. they determined the infrastructure of stocks remained resilient during the frenzy, but they want the sec to take a close look. we reported yesterday the sec is
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looking for evidence of misinformation, possible fraud. they want the sec to issue a report and willontito monitor what is going on. rishaad: su keenan joining us from new york. a quick word on what is happening in hong kong. as we head to the lunch break. up 164 percent. at one stage, it had tripled in value. a popular short video service. a big rival owns tiktok. it was the biggest internet ipo we have actually witnessed since uber. hang seng, up 0.4%. juliette. juilette: extraordinary moves we are seeing. asian equities, with the
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exception of malaysia, investors selling equities for a second day. asian stocks more broadly for the best weekly gains since november. best of daybreak at least is next. this is bloomberg. -- middle east is next. this is bloomberg.
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emily: i am emily chang in san francisco. this is "bloomberg: technology." coming up, my exclusive interview with microsoft ceo satya nadella. how the pandemic has changed what it means to go to work. and inspired the company to develop a new employee engagement product. he will introduce us to viva which he says is microsoft's
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next big thing. plus, rich


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