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tv   Bloomberg Daybreak Australia  Bloomberg  August 10, 2021 6:00pm-7:00pm EDT

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haidi: a good morning. welcome to daybreak australia. sophie: we are counting down to asia's major market opens. shery: good evening from bloomberg's in new york. u.s. stocks climbed to a record but tech weakness exposes lingering concerns about the virus and a hawkish fed. haidi: president biden wins
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bipartisan senate support for his infrastructure bill, which could face a bumpy ride in the house. shery: commonwealth bank unveil a share buyback worth almost 5 billion u.s. dollars as cash profit beats estimates. this is the picture across wall street. u.s. futures muted. this as the dow and s&p 500 saw and other record high. wti at the moment gaining 4/10 of 1% extending those gains after seeing its best day in three weeks. we had the 10 year yield higher. topping that 1.34%. leading to some jitters in the technology sector. the nasdaq composite losing ground. the philadelphia semi conductor index down for a fourth consecutive session. cpi numbers coming out of the u.s. tomorrow. we could see and other high acceleration like we saw in june near the 13 year high.
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take a look at metals and material stock. it was all about the infrastructure drivers. the bill finally passing senate. we saw the gains across the board when it comes to that sector. we had commodities rallying. i run or halting a five-day slide. copper recouping some of those losses. airlines and internet suppliers being watched closely. we have anticipation of the infrastructure bill coming up. we have those etf inflows into the the medic pave etf consistent since november of 2021 president biden was elected. of course, it is all to do with what is happening next. especially the house of representatives. will it pass there? democrats can only afford three defections. america needs this. take a look at this scorecard from the american society of engineers showing the overall
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grade for infrastructure in the u.s. ac minus. -- a c minus. rhodes, aviation, transit, a score of d. not looking great. haidi: as you would well know having lived in asia, the comparison when it comes to infrastructure investment and the newness of infrastructure is stark when you go to american cities. one of the other things that came clear is the failure of the crib though lobbyist section -- of the crypto lobbyist section to push through these changes when it comes to the language of virtual currencies as well as the tax implications. they were not able to do that. this feels like the first fight out of many on this front should shery: shery: perhaps the crypto industry not having those powerful lobbyists in congress. not like in the pharmaceutical industry. we have more on the political front because here in new york, we have the resignation of andrew cuomo as the governor.
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in two weeks, we could see new york's first female governor. kathy hochul is a veteran politician. she was not that present during the pandemic press conference as we had last year. she faces this new challenge of trying to rein in the delta variant. haidi: particularly as we see big cities including new york being affected by the rise in infections. that is continuing to plague the return to work plan. we are hearing the likes of citi requiring its workers to go back to the office. also big american cities like chicago, philadelphia, boston, requiring them to be vaccinated. what are the more restrictive -- one of the more restrictive requirements. amex pushing back the day to return to office until the 11th of october. this feels like shifting goalposts when it comes to corporate life will get back to normal and what that looks like. what's take a look at what the
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markets are looking like. let's take a look at the set up. sophie: really price action showing futures are mixed with plenty of -- we have sun as well as cathay pacific due to report earnings today. the buyback announcement. keep an eye on softbank. switching out the board, we're going to be watching reaction in asia to the u.s. infrastructure bill. construction players. last year, the u.s. imported 9% of its steel mill products from south korea. 4% from japan. we are watching the steel sector as china's steel hub extends curbs ahead of the winter olympics. one chart, the dollar very much
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in focus as traders build bullish else -- bullish bets. looking to test the moving average. goldman arguing dollar strength will wane as u.s. growth starts to slow. strategists say sustained mendham as concern over the delta variant suggests the safe haven up you'll of the greenback will continue. shery: let's get over to vonnie quinn with the first word headlines and a little more in-depth analysis of andrew cuomo resigning. vonnie: he is a resigning in two weeks. vowing -- bowing to pressure to leave office or phase impeachment. cuomo maintains he did not harass anyone but admits being thoughtless in the ways he spoke to and touched women on his staff. new york attorney general says he violated multiple federal and state laws with one allegation under criminal investigation. the top u.s. infectious disease expert says state and local
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governments should require teachers to get covid vaccinations. dr. anthony fauci told msnbc he knows this position will anchor some people. felty -- dr. fauci's call comes as hospitals across the u.s. run out of beds for patients. the hong kong government has extended regulations allowing it to implement measures to contain the pandemic. that includes the ability to make decisions on group gatherings, compulsory quarantine, compulsory testing and mask wearing. officials say the extension is set to maintain legal framework to enact curbs. hackers have pulled off what may be the biggest theft ever and of the world of decentralized finance. stealing about $600 million in cryptocurrency. the target was a network that allows users to swap tokens.
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$33 million in the stable coin that was part of the theft has been -- global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: let's discuss the winners and losers in the infrastructure bill with the head of research and strategy. great to have you with us. it seems clear some of the winners will be those airlines, internet suppliers. had you gave -- how to get exposure to those sectors? >> we think one of the misconceptions about the infrastructure bill is it is the builders of next generation infrastructure. it is commodity companies. it is heavy machinery. we have been accessing these names since 2016 when we launched the fund. we have been waiting for this
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moment for quite a while. this is a great step in the right direction for investing in u.s. infrastructure. shery: we did see some of those inflows consistent since the election of president biden. i wonder if all that has been laid out or if there is still room for gains. >> what investors need to understand is because the bill passes today does not mean the dollars are going to be spent any time soon. infrastructure takes a long time. you have surveys. you have project identification. before a shovel hits the ground and it takes years to rebuild airports and highways and bridges. if we look at some of the bills from the global financial crisis, it took about 10 years later for the desk -- the last dollar of that stimulus to be spent. we expect a similar trajectory. about 10 years for the bill to play out in the u.s. economy. haidi: i want to throughout this chart, which is taking a look at
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the infrastructure etf weekly flows. the flows have been positive but there is a sense this is treading water as we get toward the bill or as investors have expected it to go through. do you still get exposure through these etf's or do you pick out the likes of the steel milkers for example -- the steelmakers for example? >> this is such a big bill affecting so much of the economy we think it makes sense for it to have its own etf. you don't know who the winners are going to be. the construction engineering firm that will in the next big contractor redo an entire airport. we want to owned the entire ecosystem to capture the 550 billion dollars going into infrastructure today. on the etf side, this is one of the fastest growing etf's in may. we have seen consistent inflows. the rise today shows markets
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have -- haidi: beyond infrastructure, beyond the build america theme, we continue to see the uncertainty of delta. is that evident in her flows in the thematic trading you are seeing? >> people are looking beyond traditional infrastructure development for who are the winners of this bill? it is not just about building roads and highways. broadband is a big winner. digital infrastructure that is building at more exposure to broadband, ev's are big winners. building a ev charging stations can be huge in excel earning the adoption of electric vehicles. clean water, there is 65 billion earmarked for clearwater -- for clean water. this is a big investment in upgrading the u.s. water infrastructure. this is bigger than just roads. this is going to impact several different aspects of the infrastructure. haidi: are there any loose --
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shery: are there any losers? >> in the near term come under the losers could be on the cryptocurrencies side. that is probably a shorter-term impact. i think some people were hoping for more climate change money. the american jobs plan from president biden originally had over 150 billion allocated to climate change. that is reduced to 15 billion. that is less than originally anticipated. we will have to wait and see what any follow-up bills look like. haidi: head of research and strategy at global x etf's. the bank of australia has unveiled a $14.4 billion buyback plan. coming up next, more on the massive u.s. infrastructure package as it moves forward. we will be breaking down what is in the bill next. this is bloomberg. ♪
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shery: president biden has gotten his first major infrastructure when. the bipartisan bill calls for $110 billion for roads. $73 billion for grids and another 66 billion for rail transport. the plan faces a tougher hurdle in the house. let's bring in our congress reporter in washington. finally going through the senate. it was a drawnout process. what is next? >> it needs to go to the house and the house is not in session. they are not scheduled to be back for several more weeks. that is a question. nancy pelosi has some competing factions. she has some moderate members who are saying we want to vote on this right away. she has more progressives who say we want to make sure this larger democrats only will which will include all the more social
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spending on education, health care along with the tax increases, we want to make sure those move at the same time. there is a little bit of a scheduling hike up. there's also one question about what happens with the cryptocurrency provisions. there was a lot of the last-minute frenzy to try to get it changed. the cryptocurrency industry came out and said this bill is going to do some damage. they try to get an amendment added. several senators were blocked by a procedural move. there is a question on if they will be able to do that. haidi: the budget office has come out with an estimate of how much this will add to the deficit over the next 10 years. do we have an idea of what it does to the balance sheet and how it will be funded? >> about half the bill, the $550 billion through revenues raised and half of it, 256 billion will add to the deficit.
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while lawmakers did to fund this bill was scrounge around couch cushions to find 10 billion here, 20 billion there. money from previous coronavirus relief bills that have been repurposed. repurposed thing that money. 250, 300 billion was from that. cryptocurrency provision i mentioned. more tax revenue there. shery: tell us about the broader economic agenda and the budget resolution we could see to >> this physical -- we could see. >> this physical infrastructure is a small portion of jode biden's agenda. he ended up doing the two track approach. there could be a bipartisan agreement. this next approach is going to be democrats only. bernie sanders is the architect of this bill. this will be much more of what we have heard about from democrats for years about expanding medicare, higher taxes
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on the wealthy corporations. looking at free childcare, free education. an extension of the popular child tax credit. that is going to take months to write that bill but this is something they are starting right now. they are voting to kick off this process and hoping to wrap it up by the end of the year. haidi: r davidson with the latest on the infrastructure bill appeared softbank taking a sharper earnings drop. its worst performance in year. disappointment over the buyback will be passing through the report. this is bloomberg.
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haidi: a quick check of the latest headlines. apple's new iphone lineup will
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get three new major camera and video recording features. the new models are expected to go on sale in the next several weeks. like samsung and apple including a new phone featuring a curved edge and a front facing camera. the company intends to become the first -- the world's largest maker in three years. it has overtaken apple in the never too smartphone maker. exploring a potential position after the benefits went public. bloomberg sources say the retirement fund manager has studied the perches over the las vegas-based company. it is not clear whether the
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company was told there is no guarantee any deal will be reached. let's get to softbank. seeing its profits fallen by almost two thirds after its vision fund saw the worst performance in a year. losses from nine investments. looking like the current quarter will see a worse result. >> i think things will be much clearer under the new rules in one year or two years. once things get cleared, we are open to resume active investment in china. we want to wait and see how things go. including myself, management should take risks. haidi: let's bring our global tech executive editor in for more. we sell investments with the likes of coupon dragging down results in the second quarter. what do we know about what to expect going forward? >> muss eoc son tried to strike an upbeat tone.
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he talked about the geographic distribution of where the funds are invested, saying only 23% are in china. he talked about a heavy emphasis on artificial intelligence, which he has used -- which he views as the technology of the future. he talked about his willingness to put his own funds, they are allowing him to put his own funds into the vision fund as a vote of confidence. there are a lot of ways he was trying to allay concerns about the difficulty they are facing in china right now. shery: that crackdown looming heavily over the results. do we have any idea what impact softbank is going to feel from it? >> right after the quarter ended, we started to see the crack down in china start to take shape including in a couple of areas where softbank is really vulnerable. areas like transportation, didi,
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that stock has really come down. other areas like education. they are exposed there as well with china saying it wants to take that sector and make it nonprofit. there are a couple areas where softbank is getting hurt right now in the current quarter. as he mentioned, it is going to take a while for them to get clarity. they are adopting a wait and see attitude. there giving the impression they are not going to be rushing back into investing in china right away. you're going to see them holding fire in that region. haidi: the thing is, the buyback was meant to soothe investors for now given the other news. he did say the buyback is still important, just not happening at the moment. >> exactly. investors did not get that clarity. some went into the earnings.
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really wanting some visibility into their plan. it was probably reassuring for him to say it is still under discussion. exactly when and how big, that remains to be seen. the emphasis is going to remain. there is going to be urgency around management to come clean about that and to be clear with investors about how soon that is going to happen. shery: our global tech executive with the latest on softbank. we will have more analysis from bloomberg's top-ranked analyst of softbank group. we have more earnings to watch out for. we have cathay pacific and lenovo group reporting in hong kong. haidi: here in australia and new zealand, here is what we are watching out for in the day ahead. watching the bank of australia. announcing its plans.
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we are watching bhp group and union leaders in chile. they are getting closer to a wage deal that would avert a strike at the biggest copper mine. hell experts are urging new zealand's government europe lead -- to complete its vaccination rollout before the start of reopening the border next year. this is bloomberg. coming up next, we get the latest on your governor andrew cuomo stepping down over the sexual harassment claims. we'll be taking a look at how we got there. what comes next. shery: we do have an alert on the hot -- on the bloomberg. the autos saying they will be raising $11.6 billion in the hong kong listing. they say trading will begin august 12. the hong kong listing retail offer was 5.5 times subscribed. we know it will be the second u.s. trade chinese ep maker to list in hong kong.
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we had a larger rival raising $2.1 billion in the primary listing in the city back in june. does as we continue to see the scrutiny on chinese shares stayed in the u.s. and other listings happening in the mainland. the auto saying they will be raising 11.6 hong kong dollars. that the trading in hong kong will start august 12th. retail offer was also 5.5 times subscribed. here's a quick check of the markets. we are setting up for the asian open as u.s. futures muted right now after we saw another record high on wall street. qe stocks for the moment unchanged. this coming after the kiwi dollar lost ground against all g10 peers. risk saying sit in currency -- risk sensitive currency fluctuating what is happening
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broadly with the delta variant spreading tried sydney futures up a quarter of a percent. we are waiting for westpac data. nikkei futures unchanged. korea, we will be watching the unemployment rate coming total gym includes everything you need to get into the best shape of your life. for every body at any age. it works every muscle group, including your core, using your own body weight as resistance. customers love total gym because it's fun, fast and effective. nothing delivers
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haidi: the senate passed the emperor structure plan without a change to crypto tax provisions despite a herculean a push from the crypto industry. coinbase says it symbolizes how the cryptocurrency has entered the mainstream. earlier, the coinbase president spoke exclusively with emily chang. >> zooming out, this was actually a really big moment for crib the and i think it -- for crypto and i think it was a positive moment for crypto.
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the 1.5 trillion dollar infrastructure bill was held up because of a small crypto provision that frankly lawmakers did not understand the implications of blood -- of what that provision might be. it speaks to is crypto is going to be a major source of tax revenue to fund infrastructure. that is something we think is really positive for the industry. it is no longer a fringe thing. crypto has entered the mainstream here. this was a setback. there is no doubt about it. we are playing the long game here and we think the more education coinbase and other members of the industry do with lawmakers tile thumb understand -- to help them understand the potential, the more we can shape the right regulation to make sure we are protecting customers and not hindering innovation from happening in the u.s. and moving it offshore. >> coinbase has been beefing up
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the policy side of the team. i know you are working to talk with mike leaders. what kind of work do you want to see? >> we want fair and even playing field with the rest of the financial services industry. one of the interesting scratch or had moments with part of this amendment was thinking about, if you send money to your sister, that transaction is not going to require any information about your sister unless it is tagged as something that is dangerous or under various or some threshold of dollar amount. if you were sending that through a wait -- a regular wells fargo. why would crypto be regulated in a different way? we want and even playing field with financial services. >> gary gensler called the crypto industry the wild west.
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wants investors to be better protected. what are you preparing for given the signs we are seeing that crypto will be regulated as a security and not a commodity? >> i don't think we know that is going to be regulated as a security. we pioneered this idea of a digital asset framework, digital asset listing framework where we have a bunch of criteria to determine whether or not something is a utility or security. at this moment, all that coinbase list are things going into that framework as a utility. if there are parts of the ecosystem that become digital securities, we think there will be an opportunity for coinbase and others to play in that. what we are seeing as there is confusion among regulators about which parts of the system they want to moderate a very -- they want to monitor. we want to work with them to figure out what the rules of the road are and how we can regulate in a way that protects the
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customers but at the same time does not hinder crypto innovation in the united states because it will move offshore. crypto is a decentralized movement. if you try to put the genie back in the bottle, it is going to morph into something else in another part of the world. shery: now to what is likely the biggest theft ever in the world of decentralized finance. hackers managed to steal 600 million dollars in cryptocurrency from a protocol known as poly network. su keenan joins us with the latest. a bank it's robbed, you call the police. what happens here? su: it looks like you put a bunch of security researchers on the case and you take to twitter because the network put out a letter on twitter winning the hackers this was indeed a crime and urging them to make contact and work out a solution. it lets users swap tokens across
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multiple blockchain's. what they are saying is tens of thousands of people are affected by the hack, which appears to have been 600 million in multiple digital assets. we are also understanding hackers have begun moving the 600 million to other platforms or decentralized exchanges where they are trying to cash them out. we know 33 million of tether was part of the theft. it has been frozen by tether. we also know ethereum assets were part of the heist. they could technically be returned to their rightful owners. it is not possible -- it is not known whether that is possible here. we also know that with the apps attracting billions in assets, they are becoming an increasingly attractive target
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jesse james was once asked why he robbed banks. he said that is where there money is. this is where the billions are. it appears this is a shot across the bow. it will be more tax of this size. haidi: we mentioned earlier the bitcoin rebound appeared these predictions of 100,000 are apparently back in vogue. su: you have to look at where bitcoin has come from a couple months ago when it was counted out. it has lured back some 50% from recent locust -- recent lows. calls for it to go to the moon and to 200,000 by the end of the year are back. we have seen the fastest 21 day advance for bitcoin since february. many investors are seeing this as positive news given the increased scrutiny and concerns about environmental usage. one of followers says it is clearing up a lot of confusion.
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there is no longer a view this is an esoteric corner of finance. amc said they are going to consider taking cryptocurrency for popcorn and movie tickets. there is also a view that if you track the percentage increase we have seen in ethereum, you could still get to 100,000. shery: interesting this is the reaction on the date infrastructure passes and you could have more tech requirements. su keenan with the latest on all things crypto. let's get to the first word news with vonnie quinn. vonnie: russia has opened a new criminal case against the two closest allies of alexei navalny. they are accused of raising money for extremist groups. they could face up to eight years in prison.
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they say the crackdown is linked to russia's upcoming parliamentary election. kim jong-un's sister has ratcheted up pyongyang's campaign to hold -- to halt a military exercises. the state news reports she said a dear price should be paid by south korea and the u.s. further quote self-destructive behavior. that as seoul may downgrade the patrols. a last-ditch effort for a canadian court to reject an extradition request. she has been fighting extradition since her arrest in vancouver two and a half years ago. u.s. prosecutors claim she lied to hsbc about huawei's
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operations in iran. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: here in new york, andrew cuomo has resigned as governor and apologized to the 11 women the attorney general said cuomo sexually harassed. he called the report falls but said his decision to leave was in the best interest of the people of new york. kathy hochul will take over the office in 14 days, becoming the first female governor of new york. quite the downfall for somebody who was at one point thought to be a potential presidential candidate. >> definitely. cuomo resigning today was unexpected. nearly everyone i spoke with in albany said they did not believe
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he would resign. especially after the lawyer called earlier in the week by people such as president biden and nancy pelosi, all members of the new york democratic party. so then for cuomo to wait until now to resign was surprising but once the report came out, it was really difficult to overcome the allegations that were found in it. haidi: it was interesting reading about what seemed like a never give up approach to the crisis. now that this has happened, does he still face impeachment charges? >> yes. at this point, the assembly has to decide whether or not they would like to go through with impeachment of governor cuomo. they are talking about doing so.
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there are calls for impeachment to continue. doing so would prevent him were he to be impeached and convicted in the senate would prevent him from running for political office in new york again. that is the advantage of going forward with impeachment. it is not clear whether or not they will at this point. haidi: bloomberg politics reporter there. lots more to come on daybreak australia. this is bloomberg. ♪
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haidi: we are hearing now australian based data company is planning to back a per-share cash proposal of $15 91 aussie per share. we know those talks toward the end of last month have moved to the due diligence stage after eq to funds management value the company are close to 2.2 billion u.s. dollars. we are hearing the deal of $15.91 per share as the cash proposal is going to be backed. we will bring you that if we get confirmation of the takeover deal. let's get you to sophie ahead of
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the trading day. sophie: i want to highlight a note from jeffries. staying bullish on the topics. still seeing a cyclical tilt. they should be good news for japanese capital equipment makers as we have seen big ticket items going parabolic in places like the u.s. and south korea. turning to new zealand, the latest rbnz preview. the chief economist saying economy has moved quickly from resilience to frothiness given the data we have seen in inflation and jobs. she expects a 25 basis point rate hike next week. she is not ruling out 50 basis points. she does expect the rbnz will stick to a measured approach. haidi: we are taking a look at the luxury sector. a french luxury brand is taking another step in reducing its
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carbon footprint by revamping a signature tag in recycled material. >> we were doing sustainability before we knew the word existed. we are manufacturers. the fact that we are in contact with products, with the making of the products gives our company a very different character as opposed to many other fashion brands who do not manufacture anything. it comes naturally to us we need to protect the environment that provides the resources we use. we are taking a little bit more of a formal approach. we are developing a project that is pushing the envelope even further. like our project we are just launching. you are familiar with the bag that fits one of the biggest --
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none of the best selling bags -- one of the best selling bags around the world. with this project, we are going to reduce the carbon impact of each bag by 20%. haidi: the ceo speaking about the iconic bag to be rude made from recycled materials paired let's get to new zealand with the government is being advised to complete its rollout of covid-19 before reopening it orders next year. it has managed to eliminate covid-19. that excess -- that success complicates plans to reopen to the world. can new zealand potentially reopen while still maintaining zero tolerance? we have seen a shift in the approach when it comes to places like singapore. > it sounds like a classic case of winning to have your cake and eat it too. this advice comes from the new zealand public health and isa
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regroup which says one vaccination rollout is complete, the borders can reopen. changes are going to have to be made at the border to achieve this. that would mean rapid testing of -- rapid testing on departure and testing again on arrival. that would require rapid testing to be set up. the hair in the soup is the vaccination rate. new zealand's vaccination rate is even slower than australia's. only 18% of the population is vaccinated. it is going to be 2022 before this comes a possibility. the prime minister will outline her response to the advisory panel tomorrow. there is nobody from industry represented. we may see that advice being modified depending on the economic needs of the country. shery: you touched on australia. case numbers continue to grow. what is the government doing? >> the government in new south
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wales is not doing anything in terms of new restrictions. this question gets consistently asked at the daily press conferences where it is worth noting yesterday, new south wales reported a record 350 new cases. in terms of new restrictions, they are not going to be any. there have been restrictions -- there have been suggestions of curfews. a ring of steel around sydney as melbourne had. those suggestions have been rejected. the problem is people not respecting the measures. restrictions as they stand unlikely to be eased at the end of august. we have been hearing from the state of victoria their restrictions are likely to be extended. this all likely to stay in place before vaccination rates start picking up sharply. shery: you can tuned -- haidi: you can tune into bloomberg radio to hear more from the newsmakers.
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daybreak team broadcasting live from our studio in hong kong. on summer ahead. this is bloomberg. -- lots more ahead. this is bloomberg. ♪
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haidi: the bank of australia unveiled a record by back plan
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boosting its dividend. we are joined by the vice president at moody's investment services. getting the big bank earnings season off a -- off on a strong note here. >> absolutely. if you look at the result, it reflects an improving australian economy since the peak of the pandemic. cba reported net profits of 8.8 billion. this is 20% up from last year. there are number of key drivers. the main one was the much lower provision charge. a provision charge of 554 million. this compares to 2.5 billion last year. this reflects an improving environment. certainly an expectation by the bank credit losses are unlikely to be as severe as what they are modeled that four months ago.
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a very strong loan growth. cba has consistently grown above market, which is quite impressive considering it is the largest bank in australia. in 2021, the banking grew that the bank grew -- the bank grew in its core system. even more impressive was the three times growth. haidi: does asset quality become more of an issue given the growing uncertainty as to how long the lockdown conditions will endure? >> yeah, if you look at what we see as the key challenges going forward notwithstanding the result was a strong result, it is the uncertainty about the pandemic. that is going to be a feature of the economy until vaccination rates obviously reach a
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threshold. until then, we are going to see more ad hoc outbreaks and subsequent lockdowns. that is going to have more economic disruptions. what gives us some comfort is where asset quality has predicted so far. if you look at the core business of home loans, ninety-day rates only take up to 64 rates. -- 64 points. while we expect some weakening in asset quality the next 12 to 18 months, it is coming from a strong starting point. importantly, the financial impact has actually been accounted for already. in 2020, cba as well as the other banks in australia took quite significant provisions to account for the rise in losses.
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the economic inputs were much more severe than what we are experiencing now. while there is some uncertainty, at least the coverage has been accounted for. shery: how well are the borrowers doing right now especially after the end of the government measures and fiscal support like job keepers? have they been able to make the loan repayments in time? >> if you look at the statistics , the vast majority of borrowers who did seek out some sort of assistance during the pandemic, the majority of them have returned to making repayments. there are still some sectors that are a bit more sensitive to the economic disruptions. aviation is one. that is going to be impacted until international borders or even domestic borders reopen and
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you get more tourist movement. aviation is a sector that is going to be impacted. the social restrictions and lockdowns, that impacts hospitality. restaurants, cafes, etc.. those types of sectors remain under stress. borers in those sectors will be under pressure. one of the key factors that has helped keep loan losses low is strength of the housing market. borrowers who get in trouble, -- to sell, which is quite easy in strong market. that certainly limits the losses to the banks. shery: we are out of time but thank you for your insight. vice president at moody's investor service. here's a quick check of the latest headlines are china ever grant saying it is in discussions -- the talks
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involved several third-party investors and no formal agreement has been reached. evergrande has been looking to calm investor concerns. a group of women suing goldman sachs has asked for a summary judgment saying proof of gender bias is in the pay and promoting decisions was overwhelming. the data provided clear evidence of systemic discrimination. goldman argues the disparities existed only in certain groups at certain times and were not systemic. haidi: coming up, we take a look at softbank's earnings. a jefferies analyst will be joining us with his views. don't miss a big interview coming up later. we hear from the ceo of one of india's biggest automobile players. that is it for daybreak australia. daybreak: asia is next. this is bloomberg. ♪
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>> welcome to "daybreak: asia." haidi: we are counting down to asia's major markets. asian stocks set for modest gains after new wall street records, treasuries rebound from a three week low. president biden wins bipartisan support

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