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tv   Bloomberg Markets Asia  Bloomberg  April 27, 2021 10:00pm-11:00pm EDT

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names. rishaad: replacing the risk head. haslinda: laos and india battle humanitarian crises. this brings the economy down even as the u.s. promises help is on the way. rishaad: they say they're going to be paying more than 12 trillion wandsworth -- wons worth. they are not saying how they will split this inheritance either. a quick look at what is going on with the share prices down about
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.75%. sentiment is largely positive. we had this renewed rise in treasury yields. also, a bit of caution ahead of the fed reserve, some policy decisions you have some -- decisions. you have some slippage in korea. gains for the tokyo and sydney markets as well. that's go to some of these other asset classes. the bloomberg commodity market index off by .8%. it is approaching near record highs. we have not seen this massive run-up. the 10 year yield is 1.60 percent. we have the dollar there.
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haslinda:haslinda: officials are expected to read up on plans. the u.s. economy achieves what it calls essential further progress. jeff thinks the fed is guessing when it comes to its view on inflation. >> we don't know, nobody knows. what is most concerning is that they know. there are plenty of indicators that inflation will go higher. we will see. that is how i think the fed is trying to paint the picture but they are guessing. >> the asian developing says developing asian economies will rebound faster this year.
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the lender is also forecasting average inflation to fall to 3.2%. let's discuss this and more with the chief economist. good to have you with us. that is a gross projection, 7.2% for the region. what is the risk to the downside ? given that there grappling and struggling to put a lid on the virus. >> you may think that our gross forecast this year would be higher than your prior expectation but in india, part of the reason is the contraction of the whole economy minus the 2% growth rate.
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these are driven by domestic consumption and domestic investments. especially for the asian recovery of exports. the gross product seems to be quite strong. these are actually quite divergent. there is also a variant within asia. one reason is the progress of the containment of the pandemic.
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there is a lot of deployment to take a vaccine. i think this is the main potential risk. on top of this, we have geo put up attention. >> one of these is a lot of inflation. we have good luck saying that when it comes to u.s. inflation, the fed is probably playing a guessing game. >> inflation in this region will remain muted.
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our forecast for this year falls to 2.3% from 2.8% last year, driven by price inflation, especially in india. then the prices start to increase by 2.7%. at this moment, some spillover effect. >> when we look at the gross figures, we have this is fighter to deceive on one level at least. this shows big bounceback. however, with stimulus in many
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of these economies being implemented, how much growth have these economies actually borrowed from the future? >> that is a good question. from the fifth of april last year, -- this is enormous on the announcement basis. that is the size of a massive policy package.
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i think this massive package at this moment is really inaccessible. this is directed by the pandemic, income support for the families. revenue support as well. also, supporting the financial sector to continue. that is really indispensable. you can see the public debt gdp ratio reached 65%. i think that is what we see
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increasing. >> we talk education and how the pandemic has disrupted education. how much of that is likely to play out in future years as people effectively missed out on the rather important times of learning. >> i think a very difficult feature of the pandemic. we did a special study in this
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report. this study will transform into loss of future income of the students. $180 on average, annually, that is a lot so far. enormous losses we are encountering.
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this is one of the really burning issues. >> thank you so much for joining us today. let's get the first word news with vonnie quinn in new york. >> president joe biden says he spoke with prime minister modi to discuss when the u.s. will be able to send covid vaccines to india. it is something the u.s. president intends to do but he has not set up a timeline. biden revealed that in the interim, the u.s. is providing aid in the form of ribbed a machines for vaccine manufacturing -- remdesivir and machines for vaccine manufacturing. infections surge in india, the third largest food importer.
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a committee agreed the coalition can skip the meeting and press on with the plan to increase supply. the alliance intends to restart over the next three months. the european commission is looking for authority to block deals by foreign state owned companies. the proposal seeks to enter complaints. chinese business groups have already planned about the draft which could change before it is to be composed next week. sources tell bloomberg president biden is planning an extension of the estate tax. the american families plan to be unveiled on wednesday will --
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end a major aid. 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. haslinda: still ahead on bloomberg markets: asia, some personnel changes coming following the $2.9 billion loss because of these trades. rishaad: this is bloomberg. ♪
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rishaad: we are back. billionaire errors have outlined a plan to pay one of the largest
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inheritance tax bills in history. about $11 billion worth of assets in a series of transfers that will take place over several years. this get details. phyllis and. this tax bill is huge. -- fill us in, the tax bill is huge. >> their father died best year. his value was estimated at $1 billion and south korea has one of the largest tax rates, i think it is the second highest in the world. compared to the 37 other members . i think their average was around 15%. korea is at 50%, 50. when their father died, the
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family got $21 billion worth of fortune. take that, half of that. that is around $11 billion. they could have actually paid more. they are donating 23,000 pieces of artwork, including some amazing ones. they would probably have to pay at -- another $7 billion. >> thank you. earnings continue to be a dominant theme in china.
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let's look at what is coming up. let's start with a recap, how has this earning season been so far in china? >> it is ok. the bar was quite high to begin the year and then incrementally, they are getting a little bit more here. i think it is 700 copies that have reported so far. on the revenue side, 50% based on the data that we have estimates for, 50% have estimate on revenue.
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it has generally been positive but not enough to build momentum to get the market out of its hole. rishaad: here is an idea about the big names coming up. we are looking at over a thousand companies coming around. >> that is just on the mainland. thickly changed at the margin but just to give you an idea, when it comes to these results, a couple of big names, fairly representative of the big sectors. you can get a lot of the big cyclicals in the banks with the construction banks coming up. the first quarter was good.
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the second half of the first quarter was challenging. we can talk about that or in the next set of results. here are the big names coming up. >> the hong kong exchange, one of the big names, we know volumes are humongous. we also know that ipos have been really strong. what are we expecting? david: we are expecting based on the forecast a record for earnings. i think it is 40% up. the bar has already been incrementally more and more set high for this company. they can't stop revising their forecast. rishaad: a lot more on the way, having a look at a market check as well as we get equities in
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this part of the world. just holding steady with one eye on the federal reserve. this is bloomberg. ♪
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>> a major executive shakeup. this is after billions were lost on trade. let's get to stephen engle and tell us a little bit about what has happened here, exactly. i think that steve has a few audio issues. we will try and get back to him. let's look at the business flash headlines with haslinda. haslinda: reporting better than
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expected profit for the first quarter. the supply of memberships to apple says are pretty profit rose to $1.2 billion. as tech companies stockpile for the mobile shortage. they planning to increase capex to meet demand. this is the largest ever digital currency by a company traded in tokyo. this is just over $58,000. including fees for 1700 tokens. this is like a strategy to protect shareholder value. softbank has used almost all of its $23 billion allocated for share buyback, raising its bull
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run. they bought over $20 billion worth of its own stock in the past year. bloomberg cap elation show the program a run out. the effort has more than doubled. the buybacks could be losing power. third-quarter sales rose 19% after seeing strong demand for cloud computing services and a good quarterly jump in pc shipments in over two decades. however, shares flipped and extended trade. a revenue of $41.7 billion, listing the highest projection. the net income is $15.5 billion. shares have gained over 15% in the past year and the market value is approaching $2 trillion. alphabet reported first-quarter sales that topped estimates.
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it also unveiled the $15 billion share buyback. revenue boomed as people were stuck at home during the pandemic and they watched more videos online. googles cloud computing business also grew after surging demand for internet-based services. rishaad: we are looking at what is going on with those movers. we were talking about what has been happening with nomura. the company suspended a group of senior executives. we are looking at a 3.6% rise. impressive profits. many of the things that happened last year were actually a tailwind for the stay trend.
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an offer has been made there. stockpiles are up over 16%. you are with bloomberg. (announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling.
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haslinda: it is coming up on 10:30 a.m. in hong kong and shanghai, 1030 p.m. in new york. let's get the first word news headlines. i'm vonnie quin. president biden issued an executive order providing federal contractors to pay workers at least $15 an hour. democrats failed to -- the minimum wage hike for the relief package last month. it will likely face opposition from the business community, which argues forcing companies to pay at least $15 an hour will
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stifle job growth. on the pandemic, president biden says the u.s. has made stunning progress in the fight against covid-19. speaking at the white house, he said 215 million vaccine doses have been administered so far. he urged anyone who has not been vaccinated to do so. guidance allows inoculated people socializing outdoors without masks. >> if you are vaccinated, you can do more things, more safely, both outdoors as well as indoors. for those who haven't gotten their vaccination, especially if you are younger, or think you don't need it, this is another great reason to go get vaccinated now. >> justin trudeau told bloomberg green summit canada will meet its new target to reduce
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emissions by up to 45% to 2005 levels by 2030. the country missed previous climates goals. canada was the only country -- they saw car emissions rise between 2019. >> it is not just about -- themselves, it is also about consumption, making sure canadians are consuming less fossil fuels. we are going hard towards zero emission vehicles, investing, making sure people have better public transit. those kinds of investments reduce our fuel consumption. so must the world. >> china reportedly set to show its first population decline since the famine that came with the great leap forward in the late 1950's. the financial times is reporting the latest chinese -- put the total at fewer than 1.4 billion people.
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the survey was completed in december, but was not released as planned earlier in april. the population drop could slow economic growth and force some kind of re-think of government planning. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin, this is bloomberg. haslinda: the economic divide between china's southern regions and northern areas have continued to widen in coming years, according to nomura. they say the split will have implications for growth, debt, and policymaking. figures also show the pandemic has further worsened regional disparity. let's bring in our china economy editor. how stark is the division between the north and south of china? >> for the economy, that
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division, even since the ming dynasty, the more economically dynamic region is the south. the northern area has had a boom after the -- steel and coal -- they seem to be lagging now. the economic power of the south is getting stronger. they benefit from exports, the tech boom in places like shenzhen. the northern part of china has stagnated. temperature is cold, population falling, not the booming area they once were. you see the divide increasing. nothing will turn it around, really.
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rishaad: that was james mayger in beijing. let's look at what is going on elsewhere. market action. a steady picture for equities in this part of the world. nikkei to 25 is up about .4%. hang seng, .3%. we have -- rising bond yields above 1.6%. commodities have been jumping. weakness feeding through at the moment. investors are cautious ahead of the federal reserve policy decision. shares modestly to the upside. we will be speaking to the ceo of -- india. for those who need -- aid to those who need it most. this is bloomberg.
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>> we are now in the early stages of a sustainability revolution. >> may be the biggest unsolved problem in all of technology. >> every time the u.s. has done
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a great transformative things, they has been -- it has been a partnership between government. >> to ensure competitiveness and draw an investment in the u.s. canada will be able to be more ambitious. >> the objective is to keep that one and a half degree temperature rise within reach. >> the train has left the station. investors care about it. people who work inside corporate america care about these issues. certainly we see with the broader community. rishaad: top executives, policymakers, and investors speaking at the bloomberg green summit. having a look at quantum scape. going to build a next-generation battery that promises an ev trade while making charging faster. -- recently calling the company a scam. the ceo spoke exclusively to
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bloomberg. >> it is -- would get rid of these random attacks. it is something we consider. do you really think the data we had shared had impacted by -- if anything were different about that report? that report was not interested in the facts. first of all, i want to be candid, there is a legitimate short thesis you can have. it would be around this is great, there are amazing results, in terms of the capability, but it has yet to scale out the production, factories. those are uncertainties. someone can say i believe it will be harder than they think. we don't argue with that. the problem is that is not what the short is always doing.
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it was more on a wednesday, on thursday morning before the market opened, the publisher pulled a live ignition innuendo. later, the stock price dropped. he probably covered his short already. he was already gone from the market. nothing to do with the belief the company's fundamental risks were fundamental. i'm not sure that a third party lab having tested these results, even all of the data in our presentation, would it change that particular scenario -- would not change that particular scenario. we don't intend to have our strategy driven by a random short seller looking to profit on the markets. however, the questions you are bringing up for people who are legitimate server -- observers, i think it will impact. >> what do you imagine the future of lithium batteries, not
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2025, you might be able to get into a car, but 2025 and 2040? >> a couple of points. because battery chemistries are so long-term in nature, they don't change very rapidly, lithium-ion is alive for about 30 years. it is not impossible that lithium metal could drive another few decades of technology with relatively small improvements. we think it is so fundamental, it can be the basis for the next 20 years of battery improvement. rishaad: that was quantum scape's ceo. a lot more on the way. looking at the pandemic, and how
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it is hitting india hard. this is bloomberg. ♪
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haslinda: welcome back. for months, rich countries have hoarded covid-19 vaccines, and those needed to make them. but the uncontrolled outbreak of covid-19 in india is making the world re-think where the vaccine goes now.
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the vaccine nationalism has potential to backfire, prolonging the global pandemic. -- runs a nonprofit in india, and provides humanitarian support. joining us is amitabh behar. good to have you with us. with the humanitarian crisis, put it in perspective. is it worse than the numbers suggest? >> absolutely. india at the moment is gasping for oxygen. you see an absolutely unprecedented crisis. people are literally dying waiting for oxygen, waiting for a hospital bed. the numbers are probably underreported. any conversation in social media, there is only one point of discussion, can you help a relative, friend find a bed?
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so at this moment, the country is going through a very grim situation. haslinda: a lack of oxygen, also a lack of vaccines. it is ironic, given india is seen as the pharmacy of the world. >> it is absolutely ironic. india is the pharmacy who produced most of the vaccines, but you look at the numbers, the u.s. has procured enough vaccines to give vaccinations to its entire population twice. canada has enough vaccines to cure their population five times over. in india, we have just done, until now, 140 million people. it is a massive number, but for the indian population, it is extremely small.
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we still do not have a clear roadmap of how we will ensure the entire population is vaccinated. at this moment, we are looking at a vaccine shortage. there is a crisis happening between state and the central government. now you are looking at the vaccines coming into the open market with different pricing. it essentially means people who probably have better resources will be able to buy the vaccine. the poor will be left behind. it is a moment we must ensure free vaccines for all. rishaad: i understand you yourself are recovering from the coronavirus and its effects. tell me about your experience. >> i have been fortunate. i have been in home quarantined. my symptoms --
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my symptoms were very mild. my phone was constantly buzzing. people reaching out, just to get them one hospital bed, find one oxygen cylinder, one oxygen concentrator. it is happening in the capital of the city. it is pretty much the heart of the country and the story outside the metro cities is even grimmer. you look at the pictures coming from the information grounds, you see pictures of mass cremations happening in city after city. it is a story being reported from the center. what is happening in the rural areas is unknown. we are looking at almost 350,000 cases every day.
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the predictions are in the next few weeks, it will go up to one million. it has completely collapsed, crumbled. we are probably in the most difficult situation one could face. rishaad: you said you had the virus, you still probably got it. we have the double mutation. what more do you know, and how are vaccines effective against this? >> i'm not a scientist, but the reports say the vaccines are effective against the double mutant. in india, we are also talking about the shipping rotation. people are not sure about that. but the reports are these vaccines are effected even against the double mutant. that is the reason i think the
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globe must wake up, get out of the vaccine nationalism. they must do away with this intellectual property, at least around the vaccines for the next couple of years. otherwise, the mutations happen everywhere. every country, even after vaccination, would be vulnerable. the vaccine nationalism is making it counterproductive. the richer countries are hoarding all of the vaccines. there is no access to the vaccines. this is the pandemic we have not seen in the -- 100 years. the global leadership must strive to the occasion. haslinda: at this point in time, what would you like to see from the international community, what would you like them to do
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immediately? >> i think one story is certainly about vaccines. we must ensure it is out of the intellectual property regime. this is something which is not just a demand by oxfam and other entities, india and south africa has made the demand, but it is being stalled by some of the rich countries. that is one big step that can be done. at the moment, given the crisis, any support that can come in will be huge. in the last few years, we have seen support, in terms of oxygen, bringing in medicine. that is extremely welcome. during the pandemic, we need to see this as a global issue, and
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we need global solidarity of all kinds. haslinda: we talk about how the pandemic has had a disproportionate impact on women and those most vulnerable. what policies need to be implemented in india to put women and the vulnerable front and center, especially as the economy grapples with it and recovers? >> there are two parts to this. first is the immediate health crisis. at the moment, the pandemic is hitting everyone. it clearly shows the problem of not investing in public health. for decades, we have starved the public health system of resources, and it is showing up, in terms of the crisis we have. even when the crisis hit us last year, there were enough policy recommendations telling us the second wave is way more deadly,
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that we did not prepare enough for it. that india must significantly increase the oxygen production. it is about not being prepared. though we really had the data. but gradually, once things started improving, with the lockdown and other measures, i think there will be a huge migrant crisis. people will not get food. economies in formal. it will be difficult to reach out to the most vulnerable people ensuring they are protected. >> have very quickly, what more needs to be done should there be a full lockdown? are we scratching the surface? the rural areas are probably suffering hugely.
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we just don't have enough information. >> we need to do multiple things. i think people need to ensure -- that is an absolute given. we need to ramp up our health system and ensuring we are able to at least provide oxygen. it is a most painful site to see people are dying when a simple cylinder of oxygen can save that life. in india, lockdown is not simple. it comes with its own other problems of people, and not being able to get food onto their table. so we need a strong package for the poor, the migrant workers, where the state must take responsibility of protecting them, giving them food, shelter.
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it will be a very long haul, but we can do it if there is political resolve to do it. haslinda: amitabh behar, oxfam india ceo, thank you so much. a quick check of the latest business flash headlines. -- set to have repaid a mature offshore bond. the funds of the largest state owned bank. the singapore branch extended a loan to help the distressed manager, we pay, a bond that came due. china's financial regulator has asked lenders to extend loans by at least six months to help it refinance debt. starbucks global sales missed estimates, despite strong u.s. results and an improved full-year outlook. global sales increased 15%, but fell short of the 17% estimate,
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reflecting pockets of weakness in the global recovery. the measure was 91% in china, below 97% estimate. stores in the u.s. narrowly beat performance. imax plans to triple its japanese network to 100 cinemas by 2024. they said moviegoers will return to the world's third-largest movie market. depends imax cinemas selected $14 million in the pandemic, the highest revenue per screen globally. they also renew deal with toho to release five more films. personnel changes after revealing a $2.9 billion loss on trades. the brokerage suspended the global and u.s. head of the prime brokerage division, and the head of the global equities, but the head of the global risk will stay on in a different role.
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a net loss of 1.4 billion dollars, the biggest since the global financial crisis. rishaad: the jp morgan the first major bank mandating a return for its entire american workforce as soon as july. they say stephanie to remove on a rotational -- return on a rotational basis. and u.s. authorities will revise existing guidelines. microsoft rising 19% after demand for cloud and computing services in the biggest quarterly jump in pc shipments in over two decades. shares slipping. revenues of 41.7 billion dollars, missing the highest productions -- projections. microsoft shares have gained 15% in the last year. market value approaching $2 trillion. and what it means for
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policymakers, businesses, investors, and you. sign up for the new economy daily newsletter at bloomberg .com. plenty more to come. do stay with us. ♪
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emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up in the next hour, google parent alphabet beating estimates. we talk to alphabet's ceo. her thoughts on taxes, cookies, and the cloud business. plus, a new share buyback. amd and texas instruments out with the results as well. we will break down a


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