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tv   Bloomberg Markets Asia  Bloomberg  March 30, 2021 10:00pm-11:00pm EDT

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the pandemic gaining steam. the country's reopening picks up. juliette: 14 countries raised concerns about the w.h.o.'s report on covid-19 origins, accusing china of withholding data. the agency's own chief calling for further investigation. rishaad: let's get straight to the market action. a steady start to the trading day, not so particularly for china. let's have a look at the price action. nikkei 225 7/10 of 1% down. partly responsible for the drawback we had. we did have poor factory numbers as well. if we look overall at the picture globally, stocks are on track for a fourth straight quarterly gain. hang seng, one quarter of 1% up.
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really looking at 1.8% up s&p asx. the dollar index up to near four-month highs. we had gold afternoon nine-month -- after nine-month lows. a bit of nervousness creeping in as we await the opec-plus meeting taking place. we have demand worries before those talks get underway. yields creeping up, 1.73%. at the moment, that is producing more background noise than anything else. juliette: japan's biggest brokerage and bank, nomura holdings and mitsubishi are bracing for losses. su keenan is following the latest developments. jp morgan estimating the total loss for all banks with exposure could be up to $10 billion.
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nomura and msb taking hits to their shares. su: let's talk about nomura, because the loss is sizable. the debacle triggered a 16% decline in shares monday. that alone wiped out 3.5 billion from the firm's market value. nomura saying there loss would be about 2 billion. that really ends the honeymoon for the relatively new ceo, who had been enjoying a banner year. the american arm has enjoyed the most outside japan this year. he was business had been a big driver for u.s. recovery. analysts are saying the archegos related loss could erase profit for the second half. as far as mitsubishi, they are
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saying the securities unit has estimated a potential $300 million loss. j.p. morgan chase analysts are calling that potential loss manageable, saying it would have a negligible impact on profitability. rishaad: give us an idea of the range of exposure to other banks, including the likes of credit suisse. it is a very wide range, which one has to look at and say, well, do they really know what is going on? su: you are hitting the nail on the head in terms of the questions that are rising about risk management. we know that goldman has a negligible loss. ditto for deutsche bank and wells fargo. j.p. morgan chase's analyst team estimating that credit suisse appears to have the biggest loss. they are estimating it may be as large as 4 billion. what bloomberg has learned,
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according to people close to the matter, is the bank spent monday informing a shellshocked staff about the losses. they come on the heels of the green loss, the loss of that capital firm earlier in the month, and there was a hedge fund down in the fourth quarter. so credit suisse stocks and bonds taking a big hit. if you go into the bloomberg, you can see, called hedge funds and hubris, the sizable drop in nine different positions that archegos capital had, all of this pours -- this part of the forced liquidation that began on friday and continued through early this week. analysts are saying that investors should be watching out for credit statements in the future, and that poor risk management could be an emerging
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theme for credit suisse, if not other banks as well. back to you. juliette: su keenan in new york. getting some lines from the malaysian central bank, saying their 2021 monetary policy will remain accommodative. we did see the interest rate cut in july to accommodate what occurred from the covid-19 impact. the governors saying in the central bank 2020 annual report that monetary policy assessments will be data driven. they are saying monetary operations will continue to be directed at ensuring sufficient liquidity in the foreign-exchange pond and money markets. even as the economy recovers from the pandemic, they say they are not completely out of the woods, saying complacency in managing the pandemic could lead to a resurgence in infections. we've got quality bore and four other states under heavy
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restrictions. -- kuala lumpur and four other states under heavy restrictions. rishaad: having a look at this composite, down a tens of 1%. ringgit steady, as is the bond market. are we closer to finding out what caused the global pandemic? vonnie: the world health organization report they brought out on the origins of covid-19 has drawn fire from its own director general. the w.h.o. chief says the mission to study the virus in china was too quick to dismiss the theory of a lab leak. he is asking for more data. several governments are criticizing the report, calling it incomplete. the international monetary fund will upgrade its forecast for the global economic growth, the upgraded driven by improved
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outlooks for the u.s. and china. the managing directors has economic expansion this year will be higher than the imf's january projections of 5.5%. growth in 2022 will also be higher than the projected forecast. the u.s. state department's latest human rights report accuses the chinese government of crimes against humanity, signaling continued tensions with beijing under president biden. the annual report reaffirms the decision to label china's treatment of uighurs -- a panel of opec-plus experts agreed to revise down oil demand estimates for 2021 after saudi arabia's figure looked to high, according to delegates. -- too high, according to
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delegates. it follows the recommendation from a top official that the cartel should remain very cautious. that caution led to a surprise decision to maintain output cutbacks. it took six days to refloat the ever given, but the inquiry and fallout is set to last much longer. egyptian investigators will analyze recordings from the deck and are asking questions about the ship's speed, 40 miles per hour wind gusts. the suez canal authority chief executive distanced egypt from responsibility, blaming the wind and possible human and technical errors. global news 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. juliette: just getting more lines coming through. malaysia lowering its 2021 gdp growth forecast range to 7.5%.
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malaysia said they will continue to remain accommodative in order to limit the economy from shocks caused by covid. still ahead on "bloomberg markets: asia," the pandemic's impact on property in asia. rishaad: next, how will global value chains change the post pandemic era? we speak with toshinori doi, director of the asean+3 macroeconomic research office . this is bloomberg.
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juliette: you are watching "bloomberg markets: asia."
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china's economy rebounding in march. the non-manufacturing gauge, which includes the construction and services sector, climbed to a reading of the highest since november. we had these sectors improving after the lunar new year holiday on the back of strong domestic and international demand. rishaad: let's have a look at this new report, which is suggesting southeast asian and east asian nations demonstrated remarkable resilience to the health and economic impact of the covid-19 pandemic. the asean+3 macroeconomic research office has been looking into the most pressing economic issues for japan and korea. let's get more from toshinori doi. thank you for joining us. those are the bare bones of the report. tell us about what has been going on in this part of the world, and how we have been relatively -- i would not say immune, but perhaps not as badly off a other partss of the globe?
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toshinori: thank you for having me today. we reached the latest regional economic output report this morning. and the report, we focused the asean +3 region to expand by 3.9% next year. the extent that most of the countries will be able so far pre-pandemic growth rates. the recovery of output loss may take longer to recover. at the same time, it is crucially important that the rollout of vaccines happen as planned for the actual economic recovery to take place. rishaad: when you look at the region, which other countries
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likely to outperform, which are likely to underperform? toshinori: of course, in 2020, china and vietnam were clearly among the ones that were fastest to recover. some of the countries having difficulties and containing the pandemic may take longer further economic recovery to take place. -- for their economic recovery to take place. juliette: you mentioned some of the challenges, particularly the slower than expected potential rollout of vaccines across many asian countries. what other sort of risks are you seeing as we trying to rebound in 2022? toshinori: on the report they issued today, we identified four major risks for the region. the first risk is the risk of new waves of the infections,
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which could lead to another economic lucked, which -- lockdown, which would have a negative effect on the economy. the second we identified as the economic scarring affect. this would be more deeper than we anticipated. many businesses had to close down for good. many job losses are permanent. it is possible the financial distress among the households and corporations code potentially late to -- could potentially lead to financial crisis. right now, we believe the risk of financial crisis is very low because the banks in the region are well-regulated. also, there is risk of trade and
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tech tensions between the u.s. and china. the fourth could be the issue related to debt sustainability, especially if extraordinary fiscal support goes for too long. juliette: some of the risks you highlighted there, but what are the opportunities? in some sense, the pandemic has pushed us further than we expected, particularly in digitalization. toshinori: you are right. talking about the upside, there is better than expected economic recovery in the u.s., which will have a positive effect in the region. that could mean de-escalation in trade tensions. this is a big opportunity for the region. there was a central bank
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governors meeting yesterday. digitalization was the hot topic in the meeting. many governments saw this as a big opportunity, and they wanted to make sure they reaped the full benefit of digitalization. so they made digitalization one of the key pillars of their recovery. for that, it is important that governments increase their investment, both in hard and soft infrastructure for digitalization. in order for that to happen, it is important that bilateral and multilateral cooperation has to be enhanced. rishaad: very quickly, the pandemic has caused a huge shock
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to supply chains in this part of the world. how do those supply chains rejig themselves in the post pandemic era? how much of that will be informed by what is happening between beijing and washington? toshinori: it is true the pandemic exposed the vulnerability of the supply chains. we have seen a lot of discussion about on shoring or reshoring, but so far we have seen limited movement in that regard. but there will be more assets on the port of the -- on the part of corporations to make sure their supply chain -- more like the thailand plus one strategy. this is nothing new. what is more important is there will be relocation of the supply chain. it is likely the relocation will take place within the region. asia is still one of the fastest
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growing regions. the importance of the markets will keep on increasing. there is a stickiness to this global value chain. asia has established a strong network of supply chain. it is going to be very hard -- juliette: just. quickly, we have been getting some lines out of malaysian, saying they are seeing some weakness coming through in their economy, which they have downgraded their 2020 gdp for cath -- gdp growth forecast range. toshinori: the malaysian economy has a strong fundamental. the institutions are very strong. although they are not fully out of the woods yet in terms of the pandemic situation, i think they are well positioned to take advantage of the global economic
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recovery, the vaccine situation proceeds as planned. i am optimistic about the malaysian economy. rishaad: thank you so much, toshinori doi, director of the asean+3 macroeconomic research office. we've got to take a break, but coming up, w.h.o. chief criticizing the body's own report on the origins of covid-19 as calls for more transparency from china grow ever louder. this is bloomberg. ♪
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juliette: the world health organization's report on the origins of the coronavirus is facing fire from its own chief. it concluded that animals were responsible for covid-19's
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transmission, but the admission was too quick to dismiss the possibility of a chinese lab leak. rishaad: the u.s. and other governments are calling the report incomplete, salting data and access provided from china. they are asking for more transparency. let's get more from our global business asia managing editor. it is throwing up more questions than it has been trying to answer. >> it is pretty fascinating, really. you've got a joint w.h.o.-china report. half the scientists work on the w.h.o. itself. now you have the chief of that organization criticizing that work, calling into question that report. it is too early to know the ins and outs behind this. i guess you could say this being potentially political pressure on the w.h.o. chief.
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the u.s. being a very big funder of the w.h.o. it does appear as though he is contradicting a little bit the results of what his own researchers came through with here, which is pretty explosive. juliette: and what happens now? i assume this continues the search for the origins, and also what we are hearing from china. they have continually suggested the virus could have arrived in their country through refrigerated goods. emma: i think it is important to remember this report was far from being conclusive. it just tried to point the research in a particular direction. these scientists that worked on it understand from the preliminary research they have done that this was the result of an animal to human contact. how, why, when that happened, we still don't know.
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we may never know. that will require years and years of research, most likely, if you take research into other viral outbreaks like sars and ebola into consideration. today, we will be waiting to see how china response. the head of the w.h.o. has traditionally been an ally of theirs. we will be interesting to see what china has to say. juliette: emma o'brien with us. let's get to the latest business headlines. china's biggest lender's report a surge in earnings. an economic recovery curtailed lending and eased pressure on borrowers. the government eased requirements for banks to help pandemic hit firms. on high fourth-quarter profit, one company accelerated a shift
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away from its core businesses into making electric vehicles. the company said net income for the quarter fell 3.7% to $1.6 billion, slightly below analyst estimates. rishaad: let's get to these japanese equities, which are on the move ahead of this lunch break. mitsubishi ufj down nearly 4%, joining a list of financial firms taking a hit from the archegos capital management, one of the biggest margin calls of all time. the biggest bank in japan warning of the potential $300 million loss related to the u.s. client. global carmakers getting a reprieve. renaissance announced it is on track to resume mid april production in semi conductors. we have been talking about auto. toyota saying its global group
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production rose 4% from a year ago. it has been shrugging off this semi conductor shortage. japan's off for lunch. this is bloomberg. ♪
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>> 10:29 in hong kong and singapore. 10:29 p.m. in new york. we have been seeing a little bit of weakness coming through as this volatility continues. rishaad: just also looking at the import economic data shaping investor sentiment out there. we have the pmi coming in stronger than expected, 51.9.
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a lot of this is down to chip manufacturing being curtailed. that is one reason. we also had the emergency lockdown in various parts of the country. there is a contraction of 2.1%. that is the estimate according to economists. that is currently where we are at the moment. if there is any news, we will bring it. a week ago, we had the covid-19 vaccines stopped. we have seen the resumption of the administration of those vaccine -- we will see the resumption of the administration of those vaccines by friday or the beginning of next week. pharma having the rights to distribute the biontech vaccine.
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beijing, hong kong and macau put a stoppage on that after there were packaging defects on a small amount of bottles. vonnie: this will take a few more days to see all of this play out. they may feel total losses in the range of five or $10 million. -- billion. it also expects to see full closures from other lenders by the end of this week. jp morgan previously estimated losses of two or $5 billion. germany will only recommend the astrazeneca vaccine to people 60 years of age and over. it has worse side effects
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occurring in only younger recipients. this is another blow to vaccines after a surge in cases. china has finalized plans to ensure it can uphold the outcome of hong kong's legacy elections. requiring future candidates to be vetted by a national security committee. hong kong will hold its own elections in december. the chief executive tells bloomberg the new system will help the government focus on key issues. >> political problems in hong kong, that led to decades of their high and still rising prices. >> also, a 65-year-old asian
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woman beaten in an anti-asian hate crime. there is still an investigation into the attack. the biden administration and justice department has announced an initiative to curb anti-asian violence. richard nixon has died, aged 90. he was jailed for more than four years for his role in the bribery of the democratic party headquarters. he later became a talk show host and he said of the watergate break-in, he would do it all again. global news, 24 hours -- global
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news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. >> let's have a check on marcus. we are seeing the regional -- markets. we are continuing to see that regional weakness in japanese banks. hong kong's market is down by a third of 1%. the chinese the -- china's csi 300 is down. the pmi rising to 51.9 from 50.6 in february. the australian market on track for month since november. let's look at the stocks we have been watching. we have been watching asian shipping stocks. we continue to see the fallout from the suez ship being freed. they plan to invest $10 billion in making electric cars. to the downside, we are seeing a bit of weakness in chinese construction and machinery
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makers. this is rising by more than 4%. the property is also under pressure but this target has been lifted at city. jeffries siding arrays in their target prices -- citing a raise in their target prices. rishaad: let's look at major developers in china as they aim for annual cells between 10 and 20% for the next year. joining us is our correspondent. thank you for joining us. what is likely to be in store for this developer after it went through what some said was a difficult cash situation in november? >> this significant he limits 20
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profit growth. we could see a stronger balance sheet. >> when you come to that three red lines rule, what is the potential impact for the overall property sector? >> the policy that limits chinese developers based on three balance sheets, those metrics in the past, they had relied on leverage. that avenue is no longer available and we could see a wave of equity raising by developers. rishaad: we have other developers out with their figures, is there a theme developing? >> while developers reported
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vast improvement in those metrics in response to the three redlines rule, some numbers to look too good to be true. many are still targeting 10 or 20% in the next few years and we believe a strong balance sheet is the key to achieving that. >> bloomberg intelligence analyst, kristi hung. we will focus on asia's women in finance. stay with us, this is bloomberg. ♪
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>> this week on bloomberg equality, we feature radical group to -- radika gupta. she is india's only female head of an asset manager. we speak to her about women's position in the finance world. >> i think it is an ordinary journey but i think everyone's journey is a stringer. i was the daughter of an indian
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diplomat. i studied in the u.s.. we have not had anybody enter the corporate world. i started my career at mckinsey and then jumped onto the hedge fund bandwagon in 2005. then i came to do my own investment startup. i have been building that out from a small to a less small asset manager and it has been a fun ride. >> they must have informed you by giving you overslept experience.
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>> it really makes you super adaptable. i think when you are an entrepreneur trying to build out a business, you can pray much go through anything. i grew up in pakistan in some parts. i they could builds out a lot of that. there is a lot of resilience. i keep crediting my father for the amazing background because it teaches you so much. the thing that it teaches you is to constantly move forward. that is so important in the markets profession because markets change. >> looking -- living in all of those different countries would have informed you about female emancipation, inequality and things like that.
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>> i think women have a tough and pre-much any part of the world. in some ways, i think african society -- i have been a working woman on wall street and is not easy there. whether in the u.s. or india. india at least had a rich history of taking ceos. you're very clear that you are in a minority position. rishaad: india has had a female prime minister as well but let's talk about the fact that it percent of fund managers are women. what has been done to induce more female participation in the industry and what are you doing about it? >> when people realize that
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having more women talent will help the bottom line, the second that you think that -- it is a capitalistic industry. i think that as people realize there are more women coming in, some of the best run bases in the road are run by women. one of the things we are doing in investment positions is we don't look at women's resumes. sometimes i think you need to work on it down and hiring. another thing we are doing is we're working on a lot of mid-level talent. we are trying to make sure that
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mid-level had -- mid-level talent have opportunities. >> when it comes to your portfolio? >> it is becoming more important. analysis has deftly picked up. it is clearly important that it has been highlighted. if we are talking about yesterday funds, we have to start with our own industry. i do think that this will be a movement that will make them think about their female representation. rishaad: esg companies actually do better or better than poorly run esg companies.
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>> exactly. that is why i think that esg is more important. once you have more women on senior management, it just helps the bottom line. rishaad: last question, how do you see female participation in your industry 10 years from now? how will it have changed? >> i think that sounds less. i'm hoping that that can be there. i am hoping it is not just the leadership level. juliette: that was the ceo of
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edelweiss amc. we are assuming that china will step up supervision on afterschool study. this after we heard rumors of plunging stocks. that is what we are hearing now. weakness coming through in these education stocks with this report that china will step up the supervision on afterschool study. rishaad: coming up, more people swiping right on dating apps. the tender ceo said that the company had its best year on record with people trying to meet during the pandemic. we will have that next, this is bloomberg. ♪
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rishaad: this is bloomberg markets. app ani has ranked tinder the top of the list when it comes to time used. profiles are updated more often. jim lands end says the pandemic
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catapulted date -- dating apps into everyday life. >> when covid first hit, a lot of people were wondering what was going to happen to dating apps, with a go out of business? what is happening -- would they go out of business, what is happening? by the end of year, it happened under 30 times. it migrated from being a way to connect with people online only and that it became a way to connect and maybe do some activities together. maybe playing animal crossing online and in the end, it became a way to start venturing back out again. >> i know there has been more
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video calls and more time to get to know you, that makes sense. what happens to dating in 2021 question mark what happens in a post pandemic new normal? >> i would compare this to a category like streaming the same thing here, online dating was already the trend but now, that stigma is almost completely gone in the way that people meet the first thing you saw was the liquor conversations up. this was something where even going into the covid year, 40% of all couples were meeting online and tender driving over 25% of those.
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10% of couples were meeting on tender. >> what post pandemic growth are you expecting? will tender still be topping the charts when we are not in lockdown? >> there is some debate about it . we are definitely seeing people headed toward that. people are still having a hard time in europe and places like brazil where the pandemic is still raging there. most people would be vaccinated by the end of may. we think that is something we will be building into. yes, i think this trend toward online dating was something very significant. it has been exhilarating. i thing the only question is
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what is life on the others out of covid like? either way, this is just the weather people are countable connecting. it is so efficient when you look at the product and bringing people together versus just taking your chances out there. >> a quick check now of the latest business flash headlines. smartphone companies are betting on ev's. the cofounder and ceo will lead a division that will invest an additional $1.5 billion on smart vehicle making. shami -- xiaomi has deep pockets and they pointed to control of the lecture vehicle business. the rpm will other lenders to this tribute as much as 50% net
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income to -- distribute as much as 50% net income to investors. the taiwanese battery maker is said to be considering going public this year with the u.s. merger on the table. a public listing for the to a multibillion-dollar valuation. the company specializes in batteries for electric vehicles and is trying to tap investor demand for the technology. this chinese start up is one of the most used cryptocurrency wallet apps. it has raised $30 million in series b funding. the financing also sought participation from these backers. started in 2016, it has 12 million users who use the pie form to stash over $50 billion in crypto assets like bitcoin.
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rishaad: another experimental space x mishap at a test site, missing its landing. smoke and debris crashing onto the launch site. the prototype came through heavy fog in texas. this is before should it down its engines to land after a roebling sound. -- rumbling sound. there is a successful space launch with this new etf. this tracks u.s. and global companies engaged in space exploration innovation. the fund so the eighth best with more than $294 million of shares changing hands. >> we were just hearing from
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japan's chief cabinet secretary who says they want to urge, japan wants to urge the who to conduct more surveys on the origin of covid-19. they said they did not adequately analyze the white house also criticizing the report, calling it incomplete. the chief cabinet secretary sandy who should conduct more surveys on the origin of covid-19. rishaad: just getting more news coming from malaysia at the moment. it is them saying that the economy will return to pretend -- pre-pandemic levels. they are saying headline inflation is inspected to raise further. i guess they are looking at the data that they -- we haven't got to release yet for the time being. we have the economy there
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expected to rebound from the second quarter onwards. let's look at all of these headlines coming through from malaysia. this is bloomberg. ♪
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so jeff, you need all those screens streaming over your xfinity xfi... for your meeting? uhh yes. and your lucky jersey? oh, yeah. lauren, a cooler? it's hot. it's march. and jay, what's with all your screens? just checking in with my team... of colleagues. so you're all streaming on every device in the house, what?!! that was a foul. it's march... ...and you're definitely not watching basketball. no, no. i'm definitely not watching basketball. right... ( horn blaring )
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emily: i'm emily chang in san francisco and this is "bloomberg technology." the global chip crunch. unveiling its biggest overall in chip technology in almost a decade with new designs targeting markets currently


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