tv Bloomberg Markets Asia Bloomberg June 8, 2021 10:00pm-11:00pm EDT
china. it could unleash a quarter trillion dollars in funding, including $52 billion for chipmakers. plus, we talk to hong kong start up monday about plant-based proteins. yvonne: cannot wait to hear about omni salmon. we are not talking about anything that is omni right now when it comes to these inflation pressures. they dropped that number in the bottom of the last hour. markets are kind of taking this in stride right now. chinese markets are pretty much flat on the csi 300. but we have seen five straight days of down days when it comes to these chinese-listed companies. three-week highest for your
chinese 10-year, but not a lot of reaction. the rest of the market as well has been pretty mixed. taiwan and jakarta, and fte futures flat -- and fte -- nfte futures flat. you are watching oil markets. we continue to watch the likes of brent crude holding. iron for back above 200 at the moment. we did see bonds actually rally overnight. the technicals suggest we were poised to somehow break down the ransom that was recovered from the colonial pipeline, which led to a lot of concerns as well. haslinda: inflation in china,
inflation in the u.s. we have seen the price of inflation is not reading consumers in china, not just yet, but 9% ppi is a confident start. >> yes, pretty high wall for people in china. the ndrc in china saying they plan to keep consumer prices stable. it looks as though china is taking the approach that will continue to absorb prices domestically and not let it filter into the consumer price index which has so far been the case. there is a huge disparity between where ppi and cpi are running. as we saw in the data today, they are in opposite directions. obviously, the key thing for markets is how the pboc responds. that is what everyone will be anxious about, but you could not tell, the reaction from equity markets today. it was pretty subdued, so they
are not expecting the pboc to make any sudden changes to monetary policy. the health of the china economy is good. cpi's remaining fairly steady. for the moment, there's not that much pressure from the pboc to raise interest rates, but clearly, there is going to become a point where analysts will start to forecast that the short-term interest rates will need to be increased in china. we are not there yet, but if we do get any tapering talk from the fed next week, it will certainly add to the pressure on china to head in that direction, but for the time being, nobody expects an interest rate change from china. haslinda: is the yuan rally over? >> it is heading into a trading range, establishing it pretty well, somewhere between 6.35 and 6.45. it is probably the desired range
which the pboc would like to see. we are seeing reduced activity in the market. option volatility is lower. all in all, we are getting the kind of moves which the central bank will be happy with. they will be pleased after a period of the yuan strengthening probably a bit too quickly for their liking, but it will now go into something of a sideways range. the final direction for the yuan will still be for it to be pushing a little higher because, as we have just been saying, the skew is toward higher interest rates in china, and that will eventually support the yuan. yvonne: we all watched this drop in bitcoin yesterday during the asian session. it looks like we are headed for these two-we close, bringing us back to the levels we saw during
that crash back in may. how much further do you think crypto's have to decline? >> probably a bit further. we have been studying long-term charts to see where bitcoin and theory him might go. if you look at bitcoin futures, if you look at the chart that goes back to the start of the pandemic last year, probably somewhere around 27,000 is probably a kind of point where chartists may be looking for bitcoin to find some support. we are still well above that, so potentially a bit more downside for bitcoin. as far as a theory him -- as far as ethereum is concerned, it will probably be around 2000. we probably have not seen the lows for crypto just yet. yvonne: you want to watch all the top stories on bloomberg and
join us on our live blog. don't want to miss that on your way to work this morning. plenty more to look ahead to of course as we track these ppi inflation prices. one top story we are also focused on is the rising u.s. and china tensions. the u.s. senate has passed a sweeping bill worth $250 billion as it tries to compete with china's economic and military prowess. tell us a bit more about what this bill is trying to achieve. >> we saw this legislation in the senate with overwhelming bipartisan support. though we do not know the fate of the bill in the house, the senate is a very clear indicator of the concern in both political parties that the u.s. risks falling behind. as senate majority leader chuck schumer put it, whoever wins
this race is going to be the global economic leader, and that will have profound consequences for foreign policy and national security. haslinda: right. it begs the question, how is china reading this now? how is beijing going to react? >> the chinese foreign ministry has spoken on this bill several times, accusing the u.s. of suppressing china and that china has said multiple times, the u.s. should just leave china alone, let it develop, and stop suppressing its companies and coming up with other ways to basically win this fight unfairly. haslinda: the eu joining the u.s. in looking for the origin
of covid. >> we have seen a draft document that the u.s. and european union are set to adopt later this month where they called for this transparent and expert-led commission on covid-19. this has been a very sensitive matter in china, so this new intervention suggests there may be further difficulties with china. haslinda: let's get to first word news with su keenan in new york. su: we start with eu leaders and president biden. documents seen by bloomberg revealed both sides pledge to
remove steel and aluminum tariffs by the end of the year. the u.s. has begun easing travel advisories for dozens of nations that include france, canada, and mexico. they move from level four, which means do not travel, which means -- from level four, which means do not travel, to level three. u.s. house officials meanwhile are issuing warnings about the delta covid-19 variant first identified in india. the chief medical advisor to president biden, anthony fauci, says the u.k. variant has surged
with time. now accounts for more than 6% of cases in the u.s. sources say authorities led by beijing's top region to assess capital and liquidity structure. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. haidi: -- haslinda: also had, goldman sachs is set to pay a delayed penalty.
i think when people think about this as a story, they think about the documentary "conspiracy those quote and how it opened their eyes to overfishing in our waters. how much do you think that helps your market right now? >> we certainly could not have time the release of the documentary, but i think the release has really shown that light over the past two at three months. a lot of people who did not realize our damage to the ocean is up to that level of devastation and how our survival is deeply related to overfishing. yvonne: it is still quite nice, isn't it? how are do you think it can go? some say it is difficult to replicate the same kind of taste you have for seafood. do you see this growing as much
as omni pork for omni meet -- or omni meat group? >> the same thing happened when we first launched our pork product. is there a need for this? and how will consumers react? in our limited until yesterday launch, our limited tasting, blind tasting as well, people were blown away by how similar -- if you don't tell them, they may not be able to really tell that this is not from real fish. we simply are running out of fish in the ocean. 90% of big fish are gone, and a lot of studies have shown that different species and distinction in terms of many different species are really happening. from a big picture standpoint, change needs to happen.
of course, the technology, research, and quality is moving forward since many years ago. haslinda: having said that, how are you looking at the market potential affecting asia where southeast asian countries like indonesia, malaysia, their take on seafood -- what kind of market share are you potentially looking at? >> asia's consumption of seafood makes up for 70% of global consumption. when it comes to seafood, asia is the biggest consumer. within the plant-based alternative sector, it is actually a big white space because a lot of people, including us, are developing plant-based food, but plant-based seafood only makes up less than 1% of the plant-based alternative market when seafood actually makes up
for 17% of total protein market. that means there is a huge lack when it comes to seafood alternatives. we see huge potential, and that goes global. it is not just limited to asia. haslinda: to the point you are already in california, you have raised $100 million so far. is there a need to raise funds? are there ipo plans? >> we are in 20 markets right now, just entering the australian market, the u.s. market, the u.k. market. in terms of expansion globally and also the range, the pipeline and r&d, all of that, we are
going on all cylinders. the funding has been instrumental in terms of providing us with more momentum and more resources to go forward, and we are always talking to partners and potential investors in terms of really accelerating the impact of our goal. yvonne: does that mean you are not planning to go public any time soon? >> that is something that will need more study and more planning. nothing we can disclose at this point. no doubt we are examining different options best for the company. yvonne: you mentioned more options. from an esd perspective, now you seem to have a very big voice to spur this movement when it comes to alternative plant-based
seafood. what sort of products do you think could have the greatest impact, do you think? >> when it comes to seafood consumption, fish, of course, is a dominant part of it. that is the reason why with this launch, we are not just launching one type, but we are launching from tuna, salmon, two different kinds of fillets. burger form, and the deep-fried fish and chips style, and what we call the classic version, which worked very well for asian cuisine, and we leave it to the chefs to design how they want to cook it, if they put it in hot sauce for deep-fried and panfried, you name it. that's the reason why we come up with such a holistic and comprehensive range of products. it is because collectively, it can create the biggest impact and leave for consumers and chefs to decide what kind of products they would like.
yvonne: i think haslinda is waiting for an omni chilli crab. haslinda: i was going to ask about pricing. omni foods, you are able to lower your prices to reach parity with pork foods, and that is because we have seen pork prices surge. do you think that is sustainable? >> we just announced a 22% price reduction, and we do believe that with even better economic scale, there's no reason cost and price cannot come down even further. the reason is when it comes to plant-based protein, we are simply shortening the supply chain. we are eliminating the whole animal factory farming, all the process and resource and labor that need to go into that, not to mention the risk with swine
fever, with avian flu, and with covid. there are all sorts of risks that come from our ecosystem, particularly from animals right now. we just see that with demand growing, and of course, with our optimization as well. haslinda: great stuff. thank you. still to come, our guests as investors in meme stocks are just having fun. see more from our interview next. this is bloomberg. ♪
surging for a second day. one analyst says investing in meme stocks is like gambling at a casino where investors just one a half fun -- want to have fun. >> i think you are in a global krach game where everybody is talking to each other and having a blast. i understand you go to half these bars, and the meme stocks are half the conversation. a lot of it is fun now. at every crepe table, 70%, 80% of people are having fun, know that they will lose their money and accept it, and there is somebody who is going to lose their mortgage and try to hitchhike home, or lose their college fund. i think a lot of the meme stocks are people having fun. don't analyze them. it is a social -- it is almost what roblox did, by the way. not only the creation of gaming
online where you can talk to each other, but you have multiple creators -- read it and the boards, people trying to create the next game. i understand there's a couple new games starting this morning in the meme stock world. you have multiple players and multiple creators. i think they are having fun. >> which is so funny. a fintech company focuses around investing and poker as well. i want to ask because you were so early. in february, you told me you were worried about leverage in the market. what are you worried about now? >> at the end of any cycle, leverage is the thing that usually takes people out because leverage makes you make the exact decisions you don't want to make at the point you don't want to make it. we run -- as a company, we run a debt-free model. we run a pretty cash-heavy model.
we have been through two crises, and instead of reeling from those crises, i believe the firm accelerated because our firm is prepared -- the model is prepared for acceleration out of the cycle, and we are seeing that in covid, two. covid was a disaster for people health-wise, but the business itself is in great shape and accelerating, and i believe that has to do with your whole question of debt. debt is somebody else's ability to affect your business at the exact moment you want to be left alone. that is when things surprise you and you are not ready for it. it will happen again. we will cycle out of this, and it happen again. haslinda: take a look at movers in these markets. this is a biotech company that
surged on the back of that biogen news. we are watching evergrande as well as banks being told to do stress tests against their exposure to look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds.
>> 10:29 it am in hong kong and shanghai, 10:29 p.m. in hong kong. on the back of the cpi from china, chinese officials saying they are setting up a port market alert system to target prices. we have prices on the decline of late. inflation has been extending those declines, perhaps white cpi prices are still soft. they are saying they will keep the ports stockpiled to increase
supply when needed. it is something that china is watching. we did see when it came to the ppi prices, eight .5%, the highest since 2008. haslinda: taking a some data we are watching in southeast asia, the philippines approved the use of sinopharm's coronavirus vaccine and also cleared the pfizer and beyond to shut for kids aged 12-15. taiwan will finalize plans of the reopening of phuket with the aim of finalizing the reopening on july one. and one singapore has sold its first two-year debt link to libor. yvonne: and goldman sachs, they will have 10 days to pay the remaining of $1.26 billion as of its penalty for its role in the 1mdb fraud.
the payment will be triggered after a u.s. district court sentences its malaysia unit on wednesday. for more we are joined by our finance editor, adam haigh. this has been a long-running saga. tell us about the latest developments. adam: it has been a long-running saga indeed. if you cast your mind back to what we know now from 2009 which is when the former malaysian prime minister set up this fund to where we are today in june of 2021, with the latest development being that in brooklyn, they will essentially on wednesday order of the malaysia unit of goldman to pay half $1 billion, that gives them 10 days to pay the remaining one point two 6 billion. for its world. goldman has already admitted to
conspiring to engage in this five-euro scheme that violated u.s. anti-bribery laws. what we have got is another incremental development that will trigger another large payment from goldman down the road. yvonne: $250 million, what is interesting is that the producer of wolf of wall street has been named. what is the significance of this? adam: this isriza aziz, one of the producers of the movie "willful wall street," which bears relationship to this case -- "wolf of wall street." it is part of a few suits of individuals and companies that are trying to recover some of these assets that go back to this fund that we now know is 1mdb.
it goes back many years now, since it was originally set up by the malaysian prime minister back in 2009. the specifics relates to the companies already granted pictures and red granite capital. there was money used here for the purposes of financing film productions and also buying various different real estate assets. so it is more detail. more way to figure out who is involved and where responsibility lies as they try to get the money. haslinda: that 1mdb saga five years on. finance editor adam haigh. now let's get the first word news with su keenan. su: we start with the senate in
the u.s. which has approved a sweeping law helping the u.s. compete with china. the bill passed with 68 votes to 32 in area spot of bipartisanship. it includes a $250 billion investment to bolster research an investment in universities. the bill still needs approval in the house. >> i believe this legislation will enable the united states to out produce and outcompete the world in the industries of the future. >> president biden's top asia advisor says china has only itself to blame for its policies. but beijing understands that militarizing areas in the south china sea and using more assertive approach to global diplomacy has helped fuel global tensions. president xi jinping is
increasingly the only leader of china rather than part of a team, as past chinese presidents have been. the e.u. are set to push for further investigations into the origins of covid-19. they are calling for progress on an evidence-based, expert-led study free from interference. the u.s. is among several nations who have called on china to be more transparent with its data, as questions mount about whether the outbreak began with a wuhan lab leak. the u.k. have deployed military personnel to northern england to help combat the transmissible delta variant of the coronavirus, first identified in india. health secretary matt hancock announced a strengthened package of support, including more testing and door-to-door visits to encourage vaccines. u.k. officials must soon decide whether to lift remaining lockdown restrictions on june
21. finally, an hour-long ou outage of -- a content delivery network was a reminder of how many websites are exposed to disruptions. bloomberg news, "new york times" amazon and the u.k. government included. the problem with the network was identified and rectified in about one hour. global news, 24 hours a day, on air and on bloomberg quicktake, powered by over 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haslinda: asia is under pressure. inflation concerns front and center after the cpi of china surged the highest since 2008. the focus turns to u.s. cpi on thursday. that is a final indicator before the fed meets.
the csi 300 under pressure. the yuan at 63955, a step weaker but a bit stronger than it has been trading. where we are in terms of bitcoin. the crypto space, it continues to go lower. bitcoin down 45% since mid april, headed into a death cross after slumping 10% overnight. switching gears to commodities. we have oil trading higher. optimism about demand recovery driven by u.s.-china as well as europe, a report suggesting a drop in u.s. stockpiles have new york crude up above the $70 level. yvonne: interesting to hear from the chinese officials talking about how they will tame consumer prices after we saw the surge in cpi which was
contributed to by a surge in commodities. oil over $70 a barrel for the first time in years. but here in asia, the recovery over the pandemic has led that speed bumps as many nations deal with flareups. our reporter, elizabeth, joins as from singapore. waves have been hitting several countries even as europe and the u.s. have been opening up travel. tell us about the oil demand in the region. seems like it looks pretty mixed at the moment. elizabeth: that's right, we are seeing an uneven oil demand recovery across asia's biggest economy. china and india, they have gone in opposite directions. china has largely fully recovered in terms of oil consumption -- people are traveling on the road, manufacturing activity is high. on the other hand, india headed
in the other direction, because of its surge. manufacturing is important in integrating the recovery story because it affects two of the largest products, gasoline and diesel. india's dropping gasoline and oil demand is the drug on the story. the rest of asia is presenting a mixed picture in terms of oil demand. for example, japan, despite the government calling for a state of emergency in many parts of the country, oil consumption is still strong, japan is still buying a lot of crude oil. activity is high and fuel consumption is just a little then pre-covid times. australia is another positive story, the economy has seen a strong demand. on the other hand, we have
countries like malaysia and south korea. haslinda: so, how will this global oil story play out, and what does it mean for prices? elizabeth: the more positive global picture we see at the moment is the u.s. and many countries in europe opening up. oil demand is expected to recover by about 14 million barrels a day, so we are looking at a much more improved situation by the end of june, according to analysts. yvonne: elizabeth low in singapore. haslinda: still to come, we hear from the president on the national paralympic community about how sport is driving
new countries this year as its profile grows. the sport is changing attitudes toward people with disabilities, and investment in the sector is growing. he spoke exclusively to bloomberg. andrew: what we do through the paralympic movement, because sport is such a powerful vehicle and people interact with what they see. it can be when you are at the stadium or watching. through tv or internet. it is your own experience with what is going on in the field of play. that is why the change is so powerful and it has a long-lasting effect on every individual. that is the power of words and the impact of sports. that is our way to bring disabilities centerstage and started to provoke debate and a change in society. >> can you tell me about some of the ways to amplify the voices of the para athletes so they can
play a greater role in the decision-making? andrew: giving them a voice, including them in the decision-making processes is a formal and in an informal way. expanding their participation, making bodies like ours more effective increasing dialogue, and hoping to get the level of dialogue to every single nation. it is a work that has to be done on a day-to-day basis. it is not easy because different cultures and different ways of running boards around the world. we believe we should be leading the change and that is why we have implemented a few changes in our athlete canceled. they have their own strategic planning. they know where they want to get and how they want to get there. we want to inspire and make effective changes the way athletes are part of the decision-making in every single nation around the world? >> how can the ipcc expand
viewership and grew awareness? >> our relationship with the local broadcasters is something we have been doing. in many parts of the world, we are still in the moment of investing. for the tokyo games, we are investing in africa, giving broadcasting rights that zero cost to more than 20 african nations. so we are creating value for the movement in those countries. of course, some of the markets are more sophisticated. you can invest in making the broadcasting better and bringing their broadcasting to the spring games, the world cup's. that is the challenge, to show that the paralympic sport happens through 65 days a year
and not only every four years after the olympics. >> china is now a major player in paralympic sports. what is its role here and its importance? >> china is a good example in two ways. first gain the investment in paralympic sports. they have an incredible budget, good infrastructure. training centers. they have a policy and the results are there in terms of topping the metal table. three or four games in a row. the interesting thing to see is how, with the beijing 22 games around the corner, you are talking about a country with tens of millions of people with disabilities and they really took advantage of the beijing games in 2008.
it was incredible to see the procession of chinese society towards persons with disabilities. there is a government report that says that the reference for most of the chinese population was the games in 2008 -- before the games in 2008 was a beggar in the street. after the games, it changed to attract athletes. it has changed a lot. i think they were really smart in the way that they used the events to change perceptions, to capitalize and bring more investment the paralympic sport. that is why we see this disparity in terms of model participation, because they have a population, of good policy, they have resources -- they have a population, a good policy and they have resources.
they won their first gold medal in pyeongchang. so they will probably repeat the same success in the winter. yvonne: that was the president of the national paralympic committee, andrew parsons. coming up, mongolians are headed to the polls. that election could help the ruling party strengthen its hand on the country's mining resources. a closer look is next. this is bloomberg. ♪ ♪
haslinda: a quick check of the latest business flash headlines -- saudi aramco has started marketing its first sale. the state-controlled company is said to be offeringsukuk in three years, five years, and 10 years, to help fund its commitments to pay out dollars in dividends. aramco has pledged to drum up support for its initial public offering. sources say amazon is fueling bids to replace j.p. morgan as the issuer of its credit card. we are told american express and synchrony financial are among those getting, and jp morgan is willing to depart. the portfolio contains more than
$15 billion in loans. nomura executives are said to be predicting that the archegos pullout will see its prime brokerage. unit shrink dramatically in europe and the u.s.. board of the retreat is already spreading on wall street, where nomura has approached rival fans about the possibility of shifting clients. the japanese bank lost almost $3 billion when archegos collapsed. yvonne: mongolian voters are headed to the polls, with the ruling party hoping to consolidate power in a three-way presidential election. if it succeeds, it will strengthen its hands over the country chocolate mining resources. our correspondent joins us. tell bloomberg about these candidates and what is at stake. >> we have a three-way race here to elect the president.
we have ukhnaa khurelsukh , from the mongolian people's party. he was prime minister. he resigned amid some protest over harsh restrictions for covid-19. he faces off against sodnomzundui erdene , a former party boss for the democrats who resigned last year as party chief because of the strong wind of the mpp in the legislative elections. we also dangaasuren enkhbat have third-party candidate dangaasuren enkhbat -- we also have a third-party candidate dangaasuren enkhbat , seeing as a threat to the establishment. haslinda: what the results mean for the mine in mongolia? >> you can't talk about the mongolian economy without the mine, it is a huge driver of gdp
and will play a large function in the recovery after challenges from covid-19. the big player not only for the mongolian economy, that it is supposed to be the fourth largest copper mine in the world when it gets to full production. there have been some disputes. the mine is jointly owned by the mogollon government and global minor rio tinto. there were issues when it was disclosed that there were cost overruns and delays. mongolia has been saying it would like less management fees and a reduction of interest for loans. there is also some disagreement about taxes owed. a president would play a large role in settling any resolution, but also, as such an important figure in national discourse, it
can really set the mood for how relations will go forward what does this mean. yvonne:, the polls open at 7:00 a.m. and close at 10 p.m. local time tonight. are we likely going to know over -- are we likely going to know a winner soon? >> it depends not only on the results, but how fast contangos. in the 2017 election we did not get an answer at the end of the day but we did get the two highest ranking candidates in the following day. how it works is to declare a winner, and candidates must get a majority of the vote. if that does not happen, when we get the results, a run-up will follow in cities -- a runoff will follow. yvonne: terrence edwards, joining us from mongolia with
plenty at stake tonight in this ongoing mongolian election. when it comes to markets, a pretty mixed picture today. a lot of focus on inflation numbers out of china. i guess it is good news that consumer price index prices have surged 9%. the print was a miss. right now flat when it comes to mainland equities. the kospi lower. we have been focusing on what beijing has been saying about how they want to control and stabilize prices when it comes to pork prices and even creating a pork alert system. their main focus is not to bring up social unrest when it comes to inflation pressures. i think markets are taking it as a good sign at the moment, has. haslinda: the focus shifts to the u.s. cpi print coming out on thursday, the final data that could perhaps show whether or not the fed will start thinking