tv Bloomberg Daybreak Asia Bloomberg November 29, 2021 6:00pm-8:00pm EST
jack dorsey handing over the reins to the chief technology officer. shery: we have breaking news out of south korea. we are getting the numbers for october. when it comes to the month on month figures, a contraction of 3%. the expected construction -- contraction was 0.1%. but the previous months numbers has been revised downward to a decline of 1.1%> . on a year on year basis perhaps we are seeing a little bit more favorable basis because this growth of 4.5%. the expectation was growth of only 2%. this coming after a contraction in the previous month of september. we are also getting the export numbers for south korea on wednesday, and that is going to show what the external demand picture looks like, especially as we get these new infections of the new variant.
and how that will impact future economic production in south korea. haidi: let's take a look at the impact when it comes to the ses sion as markets around the region start to open up. this is what we see at the start of trading. the staggered open seeing a rebound of .25% after we saw the market closing down by half a percent. also trading modestly higher by 0.7%. nikkei futures off the session highs. seoul looking more muted. but asian stocks -- in terms of that market open. we had the rebound in the u.s. session, easing concerns about the potential impact of the omicron coronavirus strain on reopening. should point out we have heard those prepared remarks from chair powell warning about the impact on the labor market and we saw some - -in terms of
expectations of how that could impact rate policy. shery: if you look closely, it is not completely risk on as of yet. we have some indicators not yet fully reversing those dramatic moves we saw on friday. when you take a look at the five year yield, at the lowest point on friday. not to mention that the japanese yen continues to gain ground against the u.s. dollar after the government announced that japan will ban foreign visitor starting today. we saw futures down in the u.s. session but not necessarily to that 18 level that we saw before. that was a huge spike on friday. u.s. futures just about halfway back to the top of the -- we are seeing gains of 0.2% after that big rally in the new york session, course. for more about jay powell's commentary, warning that the omicron variant poses new risks to the u.s. economy.
he's preparing to testify to the senate banking committee on tuesday as president biden calls on the u.s. not to panic over the mutation. let's bring our policy editor kathleen hays. and our health care report. and our chief north asia correspondent stephen engle. kathleen, a more dovish sounding powell? kathleen: with a lot of investors thinking that fed could speed up the taper, changing their view of rate hikes government depending largely on what happens with a omicron variant. this does show that jay powell is in that dovish camp. these were prepared remarks an importantly, these are the first remarks he has made since president biden made it official who will reappoint him to be the next fed chair and the omicron variant has raised its head. here is what he said. the recent rise in the covid cases and the omicron variant
posa downside risk to jobs and economic activity, increased uncertainty for inflation. he also said greater concerns about the virus could reduce people's willingness to go to work. more work from home. slower progress we see in the labor market. we've seen jobless claims down to a pre-pandemic low and intensify supply chain disruptions. in addition, he sees quote " before reaching maximum employment." he does despite supply constraints easing, it will maybe take some pressure off those prices. he sees factors pushing up inflation that will linger well into next year. he didn't speak a word over the prepared remark over the rate hikes speeds and the speed of taper after the president of atlanta said again when he spoke with us -- to fox news on friday come he does see speeding up taper even now without omicron variant out there. we're going to see powell testify alongside janet yellen. then to the house to talk about,
those related to the pandemic. presumably the impact on the economy and what the fed and treasury intend to do about it. haidi: meanwhile in the u.s., we have seen a position of travel bans in southern africa. president biden really making assurances that the new mutation will not prompt additional restrictions. pres. biden: i will be putting for detailed strategy at how we are going to deal with covid, not with lockdowns but with boosters and testing and more. haidi: the lessons from delta are taught that leaders need to take action quickly. but we need to balance that between that and not wanting to create mass panic. >> i don't see a lot of new restrictions in the u.s. there is not a lot of appetite for that right now. with this new variant, it
will take a few weeks to understand what is going on. i talked to the drug companies and it will take two to three weeks to do basic testing to see how much it escapes existing vaccines. then we just have to wait and see how well this variant compared to delta, we don't know that yet. all we know is it that it. has taken off in south africa it is going to be a few weeks before we have a sense of what this is going to do or not to. shery: a different picture across asia are was as we are seeing new restrictions. stephen: there is a wait-and-see approach in asia as well. again, this part of the world has been more cautious than other parts of the world like the united states and europe in its are stretches. -- in its restrictions on travel. more travel restrictions. the news yesterday and effective today that japan will start banning foreigners from entry until they get a better sense of the impact of omicron. that being said, as a number of asian nations increase their restrictions on flights
and entry from africa and even hong kong limiting some entrance from the european union, we are seeing some pragmatism. we -- we heard from jay powell. what about the boj governor? we quote him as saying he is downplaying the impact as japan today starts banning foreigners. i'm not sure if he is trying to calm the markets but he is saying i'm quite sure the japanese economy will overcome the impact of covid-19 in the coming months and would be on the recovery and growth phase within a couple of months." he's saying omicron in this initial stage is not necessarily going to affect their, the boj's , forecast for economic growth and recovery in japan. in hong kong, essentially they are saying the omicron variant is not going to impact. health officials are going to say -- not going to impact the talks ongoing with china about
opening the border. on a separate note, we also hearing from president xi jinping. we have that soundbite he spoke at the china africa cooperation forum. >> to help the african union achieve its goal of vaccinating 60% of the african population by 2022, i announce that china will provide another one billion doses of vaccines to africa. stephen: china seeing that opportunity to add another one billion vaccines, pledging them to african nations who are struggling with this new variant. haidi: our asia correspondent stephen engle and our health care reporter at our global economics and policy editor kathleen hays. more on the fallout of the pandemic and how china's economy is faring. we will be counting down to the pmi data due out later with insights from our economist from jp morgan and morgan stanley. let's get you to vonnie quinn with the first word headlines. vonnie: australia's economy may
post its second-largest contraction on record. economists see gdp falling 2.5% in the june to september time. thanks so lockdowns to contain an outbreak of the delta coronavirus. australia boosted its official production forecast on 5% to a record. despite rain and flood damage. twitter's cofounder jack dorsey is stepping down as ceo effective immediate repair he also heads up payments company squared. he is being replaced by the technology officer. a leading figure in twitter -- to create an effort for decentralized standard for social media. honduras is set to declare its first female president with castro on track for a landslide win. her election would and 12 years of rule by the national party.
they place to tax the rich and overhaul what she calls the nations failed -- role model. she is considering whether to and diplomatic relations with taiwan in favor of china. sweden's first prime has been reelected. she will form a one-party government. easing political turmoil prompted by her resignation last week. anderson sat debt -- step down as prime minister hours after being appointed when her junior partner in government quit. global news 24 hours a day on air and on bloombergquint tape powered by's 2700 journalists and analysts in 120 countries. i'm vonnie quinn. this is bloomberg. shery: why blackrock's woodland, says that rieslings can provide more in portfolios. -- for more resilience. this is bloomberg. ♪
pres. biden: this variant is a cause for concern, not a cause for panic. >> this variant has the ability to escape the protections of our vaccine. i think that that's something that we will know in a couple of weeks. >> fortunately for us, the pcr's that we mostly use would pick up this very unusual variant. pres. biden: my team is working with pfizer and modern and johnson & johnson to develop contingency plans for vaccines and boosters if needed. >> we have a high level of confidence we will have it ready within 100 days. but we can very high level of confidence that we can manufacture it by billions if needed.
shery: let's discuss the broader market invocation spirit we are joined from singapore by the head of economics and strategy, vishnu varathan. always great having you with us. in the new york session we saw a commodity related -- gaining against the u.s. dollar. we have seen incredible strength for the greenback. this chart on the bloomberg showing how emerging market currencies on the other side at the lowest level since may 2020. what is the trajectory for the u.s. dollar, even this haven demand? >> you are definitely right. the omicron -- but the dollar seems to be supportive one way or another. right now this haven demand. and then you get the dollar propped up due to the safe haven demand. but if we get out of this and the risks from omicron are assessed to be fairly contained, then we get back into the fed policy diversion part in which
we get the dollar strengthening. and that leads the way out in normalization. and speaking of elevated inflation. it means that real returns, even in the emerging world is not going to be particularly effective. that will probably lead to the dollar retaining a bit of traction into the first half of 2022 before this year -- and some policy catch up. shery: where does that leave the japanese yen? but, all of a sudden it has become a haven of choice during this turmoil. vishna: that is a great question. we were caught by omicron. we were looking for the yen to get appreciably to get -- weaker given the sustained policy divers-- divergence. we will see a rather twitchy
dollar-yen, until some clarity may be derived. haidi: here a somewhat uncertain jay powell and his prepared remarks to the senate banking committee. is there a sense that we should be paring back some of the tightening cycles because of the uncertainty of this variant? vishna: to some extent markets already did. the yields, they plunged on friday. some of that ground has been made back up again but we do see caution and pricing in the extent of adjustment to -- policy right now. the two things we need to look out for is the steepening around the -- and the 530.. that will give us a sense of how quickly the fed needs to pick up the pace of taper. for rate hikes, i think that jay powell will want to remain a lot of flex ability. i think you will reinforce what
he said it jackson hole, that the end of taper does not mechanically stop rate hikes, but given take a midyear 2022 rate hike is still in the cards, so long as this virus does not or any variant risk for that matter does not derail the plans because inflation will be sticky until at least the second half of 2022. haidi: what is the most opportunistic strategy going into next year? if you take a look at the cross-section between friday and now, it seems the concept of risk on, risk off isn't playing out the way we might expect. vishna: no, you're right. markets will have some degree of insurance that's priced in. some degree of insurance will remain, as we just said earlier, it will take two weeks to get any clarity on how much of a risk this virus -- right now we
only have anecdotal evidence of the -- the insurance bets will remain in place. it looks to be that any selloff in the dollar because of pushback to the fed expectations is an opportunity to buy back the dollar, given that they would make that ground on the fed policy diverg ence. take it slow. that remains intact because the ticket slow part is for insurance. after that, to really -- the irony is that the virus risks were initially lift inflation rather than alleviate it. shery: head of economics and strategy always great having you on. coming up next, jack dorsey steps down. we assess his time at twitter and what could be in store for the social network entre nous -- under a new ceo.
shery: co-ceo jack dorsey stepping down from the social network he sounded 15 years ago. handing the reins out to the chief technology officer. dorsey said he is leaving twitter because he believes he is ready to move on from its founder. for more, let's bring our technology editor. tom, what will change and what won't with a new ceo? tom: they are bringing in somebody who is been there for a decade. he's worked with dorsey on a lot of projects over the years, including most recently his blockchain ambitions which we are still not sure what those look like. we're not expecting this to be a revolutionary change of
leadership. what we, one of the most important qualities of -- is he's someone who will not be running another company. for years, twitter and jack dorsey have been plagued by complaints that his loyalties are divided. because, as you know, he is also running square, the emerging, major platform, payments platform that has a lot of projects in terms of cryptocurrencies underway, which we know is a big area of interest for jack dorsey. for years, in fact, we had an activist investor get own a big stake in twitter in recent years in order to urge change and even pushing dorsey to move on. now, jack dorsey, to his credit, overcame that crisis. he kept his job. but the concerns about whether jack dorsey is spending enough time on twitter have really dogged the company and
persisted. so, this is a way of saying, i am moving on. we're going to move beyond this idea of the founder led company and handed over to someone who is known internally as a technologist with a lot of capabilities and a lot of experience, at least internally at twitter. in product evolvement and technology -- and product development. haidi: he is a continuity candidate. what is the prospect of a turnaround? when you take a look at the comparison of other founder led companies or that tech sector over the last 5, 10 years, twitter has missed out on that big rally. and had a big plunge this year. tom: yeah. so, there are a lot of things he needs to get right. agrawal needs to get first in -- and foremost, product of element. getting people something to be
excited about when they come to twitter. it has become important that so many of us use. world leaders. athletes, celebrities. journalists. a lot of people use it. a lot of people love it. but it has been relatively static. first and foremost, he needs to get product developed, and all the door. if not perfected, just get them out the door on a much better cadence than they have under jack dorsey. that's one of the things he was criticized for. one of the other problems with twitter is content. and content moderation. what do you so about hate speech? what do you do about bullying? what you do about misinformation? those things dog all the social media platforms and twitter among them. one thing that jack dorsey did that stood out from other social media is he was a lot more aggressive when it came to donald trump, for several, who use the platform in a lot of ways that were considered to be
abusive of their terms of service. jack dorsey was one of the earliest and most aggressive in terms of dealing with him. but there is still so much harmful content that still continues to plague this platform like other social media. that is another big task on a grawal's to do list. haidi: our executive editor there. let's get the latest business flash headlines. -- pledges more debt issued by china ever as concerns over finances and a selloff in its stock and bonds. ashmore -- bought $100 million bonds bringing its holding to $500 million. it was already the biggest holder of the property developers bonds. fantasia group has received investor approval to delay early redemption of a $730 yuan local bond by two years.
the early repayment of the principal amount demand by bondholders was due on monday. the come they will pay 20% of the payment incurred on tuesday. the remainder is due next november. nissan's unveiled in $18 billion ev strategy as a pillar of its long-term growth. it will introduce 15 new ev's and invest half of its sales to be electrified by 2030. nissan's on track to return to profit for the first time in three years. >> this situation of the dynamic and the supply shortage or impacting the industry. how can we anticipate to be ready is key for us. so far, our company were able to manage this fy21 outlook and we certainly growing. shery: we have plenty more to
come on daybreak asia. this is bloomberg. ♪ so, i started listening to audible about two years ago. a friend of mine recommended a book to me, and i got hooked really fast. and then it kind of just became a lifestyle after that. i've found new authors. i've found new interests. i've found all of these wonderful things. audible has all the entertainment you love. text listen4 to 500500 to get thirty days free. i like thrillers, true crime podcasts, news podcasts... science fiction, space dramas... a lot of classics. i listen almost exclusively to the audible originals. i also think it's pretty special that they get audiobooks that aren't released anywhere else. my friends listen to audible as well. i'll recommend a lot of things to them, especially the new sandman series. you can find things that will take you to new worlds.
haidi: we do have breaking news when it comes to the japanese labor market crossing the bloomberg. when it comes to the job to applicant ratio we see that -- 1.15, from 1.16 and expectations were actually for us like rise to 1.17. the jobless rate coming at 2.7%. that is also coming in a little bit under expectations of 2.8%. that was expected to be unchanged from the previous month. when it comes to the broader outlook, we have seen the
japanese economy constrained by that labor shortage, the population continuing to age and shrink. the jobs of abel have exceeded the number of people looking for work -- the jobs available have exceeded the number of people looking for work, even during the pandemic and we saw the virus impact the state of emergency. bumping the jobless rate up. but it is still well below 3%. a lack of inflows from foreign workers and we did also see the japanese government announced it will be shutting its border to foreigners on account of the omicron virus risk as well. the labor constraints we have seen flowing through to capexx as well. played out in particular when it comes to the services sector. shey, we do see that jobless rate taking down at 2.7%. shery: we see what investors are watching japan as we count down to the market open. so, we have seen japanese stocks
underperform the broader asian markets. why? >> right. one of the reasons is japan is a market that is heavy of so-called cyclical stocks. with this worry about this new variant spreading -- business activities, investors are inclined to sell japanese stocks. japan has been slow in recovering from pandemic, from the pandemic. with this new variant spreading, fresh were, there is renewed concerned about how much slower japan is going to be in catching up with other economies. and, of course, there is also a bit of concern about from foreign investors who have already been in doubt about the administration's thinking about their capitalism policies. they have a tendency to sell off japanese equities and prefer other markets for they-- where they feel more confident. haidi: how much have we seen on reopening stocks?
min: opening stocks have been sold off heavily. and especially with japan introducing new measures to close off borders again or -- for foreigners entering the country for a while, the impact could last a bit longer. but, of course, after two straight days of heavy selling, if you look at the nikkei futures, you can see some buying. we'll see how much the market recovers today if they actually do. haidi: min jeong lee, in tokyo. let's take a look at what to expect when the trading day gets underway. what are you looking out for as we see the semblance of calm get restored? >> so the -- topics fell on monday but it will be reopened
after u.s. stocks rallied overnight. it was a relief to investors yesterday. that the south korean government said it would not impose lockdown or strengthen social distancing measures in response to the new variant. it is also going to provide a relief to the korean investors. president biden rolled out lockdown or shutdown as well because the south korean economy is so much dependent on global trade that any development that could disrupt a slight changes or manufacturing -- that could disrupt supply chains or manufacturing could disrupt the korean market. we are seeing a strong rally in south korean markets this morning because the trading volume has been so thin these days. and the market has not seen any catalyst that could move the stock market to either direction. haidi: let's take a look at how
we are tracking what the markets are already trading in asia on this tuesday session. you -- we continue to see the rebound, the market calming some of those fears at least being raised by the new omicron variant. sydney stocks are up. new zealand also extending gains as well. we do have singapore nikkei futures looking a little bit stronger there, over 1% higher as we get into 25 minutes away from the start of trading in seoul and tokyo. s&p future seeing a bump up as well, rising as concerns over the virus start to ease. we're also seeing a dip there in the japanese yen. quite different when you take a look at the picture for treasuries as well. shery: well, staying with the virus, moderna posted the best today rally after the company said inuvo vaccine -- a new vaccine could be
ready by early 2022 if required. the ceo spoke on the new variant. >> we have a lot better reference to -- than we did 18 months ago but that, i think that, again, worrying, we always should be worried when we are under attack. i think it is what we do about it that matters. >> so, what should we do about it, and what will moderna have to do about it will this strain elude the current vaccine, and what are the challenges that is the case? >> moderna issued a statement on friday afternoon with a comprehensive plan that we already had prepared for this eventuality. that comprises a number of steps. one, quite rapidly verify whether the immune response that a boosted patient will receive from our vaccines is sufficient to protect against infection from this omicron variant. that will be known in the next
couple of weeks. second, we have activated additional tests for multi variant vaccines that we have already got under testing. in this case, the original 1273 plus the beta variant and the 12 70 plus the delta. we are in human trials there and we have data and that might be a quick follow on line of defense. in case the 1273 alone does not do the trick. we already started and said in program with that within 60 days or so we will take it to a point where we have a fully variant specific, omicron specific vaccine should we need it. i don't think there is going to be one solution to this. they are going to be a number of defending steps that we will make sure to take. emily: what is the fastest possible timeline a moderna omicron booster could be available? >> availability to the public is a function of emergency use and
that will be largely determined by the fda, which i'm sure will look at the data, the facts on the ground, the level of threat, and decide how much additional data it needs for this variant t o be able to allow it to be more broadly available. i can't speculate on that. the piece of it that we control, we have said -- we think we are in a position to do, based on the 10 years of platform development we have done already with mrna vaccines, we are in an ideal position to respond within 60 days. emily: talk to us about the new science involve here and what we know about antibodies and antibody levels right now, and how that is informing your work? >> well, it is a very good question, because i think the sole question of antibody levels is a very underexplored or i would say under measured aspect of this pandemic. we talk about antigen testing to
see if you have been infected. but actually what you want to know is how strong is the antibody response in your body in response let's say to a vaccine? and that is something that we have relatively little activity in. other than the fact that people are pushing papers, that are showing strong correlation between antibody levels and -- vaccine breakthrough so that the hard antibody levels very clearly correlates to better protection. and, of course, the fda is making decisions for booster approval and the like all based on antibody levels. i think, as we enter this third phase of the pandemic, hopefully that various -- not a very serious one but it could well be we need to be mindful of how this virus is varying itself and how are antibody levels is adequate or not to protect us. it is those two measurements that have to happen side-by-side and went all manufacturers set over the next two weeks we will
tell you far vaccine is still effective, essentially it will be by measuring the antibody levels against this new threat. i think that should be more broadly available and more broadly deployed, because let's face it -- if we do have a big threat, we will have to take protection in terms of masks and separation and curtailing travel but importantly we're going to want to make sure that any boosters we have will be available to the most vulnerable. haidi: speaking with emily chang. let's now get to vonnie quinn with the first word headlines. china is pledging more of its vaccines. vonnie: another one billion vaccine doses to african natio ns. the continent grappling with omicron variant. 600 million doses will be donated while the rest will be jointly produced by chinese businesses and african countries. he posted a video at the forum on china africa cooperation where he also said $20 billion in credit lines and investments over the next three years. the world health organization is
wording that the omicron variant could fuel a fresh surge of infections with severe consequences. it sees considerable uncertainty with the new variant which appears more transmissible. meanwhile, south african authorities say -- do account for 10% of total hospital admissions in the country's omicron epicenter. will go to a federal action in early may over a plan to bring forth the budget. the morsi government has named march 29 is a day to release his economic blueprint. the timeline may change and lawmakers believe the prime minister will go to the pole sooner if he believes he can win another term. global news 24 hours a day on air and on bloomberg quicktake powered by 2700 journalists and analysts in 120 countries. i am vonnie quinn. this is bloomberg. haidi: coming up next, we will hear from -- the ceo about the
chain crunch. one of the biggest ocean carriers is dangling incentives of $200 a container for help in clearing the backlog out of southern california. cgm group says will offer importers $100 for each container in los angeles and long beach during daytime hours and within the first eight days of an arrival. president biden says his administration has made strides towards relieving u.s. supply chain disruptions. he met with major retailers including walmart and they assured him that they have -- added more inventory for the holiday. in the president says discussions with core companies and labor unions have contributed to a 40% decrease in the number of container sitting at docks eight days or longer. and amid all the issues facing global trade, the wto's decision to postpone a critical meeting is throwing into question efforts to rehabilitate the alliance. the stalemate as a referee for global trade has raised more
uncertainty on the face of trade multi-nationalism. the sectors that are badly affected has been automakers. take a look at this chart. it illustrates the impact of bottlenecks on the sector. the ratio of inventories to sales among u.s. distributor's have tumbled to its lowest reading suggesting that manufacturers aren't making enough cars fast enough to meet demand. but bloomberg intelligence does see better days ahead. and his latest report, it says chips are -- chips supplies are steadying next year. bloomberg users can read more about those stories in our newsletters on the bloomberg. well, sticking with autos nissan is making an $18 billion investment to turn it ev models into a pillar of his -- its long-term growth. the ceo says the automaker has
been growing at a good pace despite the uncertainty brought about by the pandemic and the global chip crunch. >> this situation of the dynamic and the chip supply shortage are very impacting the industry. so, how we can solve and anticipate to be ready for the business continuity is going to be key for us. so far, our company we're able to manage this fy21 of our outlook and we are certainly grown and doing the progress at the right pace for the nissan next. definitely we need to -- work with the partner supplier to make sure supply chain is going to recover in terms of this semi conductor, which is very very, something that we need to be, to anticipate for sure. >> how specifically are you concerned by this new variant, omicron? makoto: well, this is something, first of all, i would like -- to make the right level of the
company care to our employees, to the families, to the partners, how we can make sure not be affected. hop we can make sure to continue to do so in the company and moving our business. again, we need to anticipate many cases and we have to make sure our businesses are going to run at the right pace despite all of the uncertainty of the new virus that is coming. so, this is something that we are discussing a lot in our global basis to make sure again to first, our employees and families of their safety and their health has to be taken care of. and we do take -- put a lot of focus onto that. >> let's shift our focus to this big $18 billion, 2 trillion yen investment schedule over the next five years to electrify half your fleet by 2030. how do you plan to fund this
investment in ev? makoto: well, we are planning this -- this is where we want to be, what we are aiming for. we want to make sure to provide safer, cleaner, inclusive -- how the nissan can make our company -- as you mention the 2 trillion yen is quite huge, but we have been investing up until today. and definitely we are talking about the product's portfolio shift more onto the electrified vehicles where that -- vehicle investment and the new electrified vehicle investment -- why we are going farther to keep the momentum of the nissan next. also, the revenue has met with the new vehicle to have our presence. all of this balance, i am very
confident that we can make this future investment. why we are growing our company itself -- while we are growing our company itself. haidi: makoto uchida speaking to stephen engle. transport is the key investment theme for blackrock along with impact investment. to unpack this further is the co-head of sustainable investing, emily woodland. we heard from the ceo with its big bet on a lector fine with the majority of its profits in the years to come. how are you investing along this theme and what are your top picks, given the momentum and the competition in the space? emily: absolutely. thank you for having me here today. look, i think the first thing that is really front and center for our clients is sustainable energy. and that is looking at alternatives to traditional energy sources such as fossil fuels and their sectors. within that, we would be looking
at renewable energy or alternative fuels or energy efficiency technology or storage or even infrastructure. that leads us neatly to the second related theme which is future of transport related themes. with the world shifting to a more low carbon and autonomous -- sector, that is going to require a lot of investment. and that opportunity is not just limited to electric vehicle manufacturers or battery makers but whole value chains connected to powering vehicles as well as autonomous technologies and even transport efficiencies that will be presenting opportunities for investors over the long-term. then thirdly -- another area of interest is impact investing. and, because sustainability isn't really about only one theme or one sector, impact investing looks a little bit more broadly at environmental and social themes that could
potentially -- sustainable developing goals. so, not just energy but sanitation or education or pollution remediation. shery: how important is public-private partnership to achieve all of this, impact investment and esp themes when it comes to the markets? emily: absolutely. this was a really big thing that came out of cop 26. and something we are keen to focus on a blackrock. we estimate that in order to achieve a just and equitable net zero transition, emerging markets will need about 1 trillion u.s. dollars of funding a year. so, we believe that leveraging additional public finance from economies that can afford it into countries where that green transition is really critical but it is still under funding will be key for unlocking that transition.
so, public finance can be really be used to leverage and mobilize in equities when it comes to green infrastructure in emerging markets. shery: what are the opportunities you are seeing in asia, especially as we see china's drive in order to transition to green energy as well? emily: yeah, absolutely. countries like china and india, because they are such a big proportion of the apac universe and have contributed to apac's admissions will be critical in this. now, china, obviously with its net zero by 2060 commitments and the announcement of its cooperation at the -- with the u.s.a. will be at the forefront of technological developments. we're seeing china driving strides in renewable energy and electric vehicles in particular and we can continue to believe that particular with the development of its carbon market over the medium to long-term, they will continue to facilitate that shift. in india, that was a welcome
announcement. that's a really significant of element for the region, because as india makes efforts to raise the $1 trillion it believes it needs in climate finance to facilitate that transition, we think that will create massive opportunities particularlly in that economy as well. it all hinges on that question of public-private finance partnerships that we just talked about. shery: emily woodland, joining us from blackrock. we have breaking news. we are getting the industrial production numbers out of -- for october. these are the preliminary figures coming in at a gain of 1 .1%, slightly less than expected but still -- three months of declines. the year and your numbers, a contraction of 4.4%, bigger than expected. and bigger than the previous month. we aren't seeing the months and
months figures right now. easing up a bit, given the pent-up demand we saw in japan is starting to filter in. the virus restrictions were lifted at the end of september. but, of course, with a omicron variant again rampant, we might see some of those numbers being hit later in the year. for now, the industry through - -the industrial minister saying the november output will be 9% months and months. this is bloomberg. ♪
shery: we're counting down to the start of trading. tokyo and seroul, the stories we are watching. the pharma company is looking at developing an omicron vaccine. nissan saying it is investing $17 billion in the next five years and electrifying more cars as they mean to make more than 50% of hybrid or electric by 2030. seoul reporting that the nidec is in talks to buy 70% stake in hanon for $5 billion. in south korea we are watching and duster production numbers. we saw it contract about 3% month on month. lg electronics also has new leadership in place. not to mention that korea is expanding its use -- of covid
>> welcome to "daybreak asia", i'm haidi stroud-watts in sydney. >> asia's major markets have opened for trade. our top stories this hour. asian stocks rise after wall street rebounds as worries over the omicron variant. still risk on and bond market with jay powell warning a risk could hit -- stronger developer
tries to sell investors on a debt swap. >> we do have breaking news. we are hearing that the hedge fund has asked them to separate the call business to add more value to shareholders, saying it has become a pair years to investment saying that the commodity giant could realize more value for shareholders as it separates the business and supervise its asset base and discloses the asset and the government issues. partners are making the demands for the company that has been cited by bloomberg. they have seen no further comments when it comes to that, other than what we saw beyond the letter, saying that glencore engages regularly with its investors. this comes as we just hear from a new report that glencore australian coal mine has been revealed in this new report as a
super emitter. they had 230,000 tons of greenhouse gases in 2018 and 2019. of course coming after what was really a mixed set of results and it comes to countries and companies coal commitments out of cup 26. shery: we are looking at the broader markets. a rally for the japanese nikkei and korean stocks. every sector is right now in the green. we have seen japanese stocks underperforming in recent sessions. we have strength for the japanese yen. right now under pressure against the u.s. dollar at that 113 point eight level. we have industrial production numbers, not to mention the jobless rate coming in and japan. when it came to the industrial output numbers, they halted three months of decline, but missed expectations, the jobless rate was also lower than expected. take a look at the kospi.
having its best day in about a week, gaining more than a percent for both the caused act. the korean won gaining a quarter percent against the u.s. dollar. little change after filing all week. it was saying that the government will operate a 24 hour monitoring system local and global financial markets given the risks related to omicron. we had industrial production numbers also missing expectations on that month-to-month number. haidi: the interesting question is given the dovishness when it comes to what we heard from fed chair powell. what are the implications, not just for treasury markets buffer broader risk assets, given that we could see sending inflation higher with les moonves from the fed? this is what we see from the australian new zealand market. we see the rally coming out of sydney. our financial services, in particular, i.t., stronger
performers sector wise and sydney were seeing some stability returning to the aussie dollar. some of the commodity currencies have been rallying as the omicron fears start to ease. let's bring in the managing director. you see the very quick turnaround and sentiment. some pockets of the market have not recovered from what we saw on friday. what does that tell you about how the investing community -- the way that they are starting to look at new variants in the pandemic? >> this new variant was a big surprise, considering that we know very little about it, but the reaction is quite a number of mutations compared to the previous one. we have to learn how to handle it and what measures to put on. it's very swift to close down air china vote. so that's it shared the markets
and put in this caution. i think over the weekend something more has been left about the new variant even though it takes a while to understand how it's behaving and we started the weekend in asia. haidi: i want to take you to our question of the day which is asking how low will rates up to go for longer in order to move risk assets? in particular, my question would be do we expect to see a further boost to equities, even if there is an inflation as a result of a more dovish fed? >> last week the fed -- the market pricing had a more hawkish fed. that's the fastest pace of tapering mentioned by some fomc officials. in bringing forward the hikes
and bringing up three hikes next year. omicron has change that. just her chair powell mentioned that it's something of concern for him as well. he put in a paragraph in his prepared remarks to his testimony, and it does indicate there will be less urgency to talk about tapering and faster hiking when the next or fed means for its important meeting. so it does take away the pressure from the rate hikes and we think the investors have knocked off about one rate hike for next year. shery: we of course have seen the volatility come down a little bit. but not necessarily to the level before the news of the variant. just gtv char on the bloomberg showing how immense this make it interesting for you to enter the markets? where would you go?
>> it does make it interesting to into the markets at the level we saw yesterday morning and asia opening. where would i go from the u.s. into technology? let's assume we have the same problem that we had with the other variant. we know technology was a pretty good sector to be in at that time, but we have seen quite a decline in technology stocks due to higher rates because of the sensitivity to interest rates and to bond yields. and bond yields have come up because we are pricing in less of an active fed after this latest variant discovery. shery: does this mean we will see the continuation of u.s. narrative when it comes to market strength in question we have seen the yuan dollar really outbid the uncertainty.
>> the technology side, the u.s. is a big advantage in the technology being highly reflected in its indices in the s&p, but it's just the other market. i do think it does favor the u.s. in this environment. the u.s. dollar was put up because of the fed hike. that is somewhat going to be tempered, but also in the risk off currency, so when the markets give very worried about risk, the dollar does well. and we saw that on friday as well. shery: thank you so much for joining us, it was great having you on. let's discuss fed chair jay powell's comments on the omicron variant with global economic and policy editor, kathleen hays. does this sound like a more dovish powell? kathleen: this is jay powell. there has been a lot of talk about the fed moving up the rate hikes are tapering faster. we had rafael bostic telling us
last week that he would, at repeating that on friday after the emergence of news on oh micron. he has been dovish all along. these prepared remarks for his testimony for two days, the senate banking committee on tuesday, the house on wednesday had very important, brief, but important comments. the recent covid-19 cases in the emergence of the omicron variant. he did not shy back from mentioning it. economic activity and increased into your inflation. look at the labor markets. if you are more concerned about the virus, you may not be willing to go to work in person. there has been talk about labor market shortages because people need to stay at home and it could intensify supply chain disruption. he sees more ground to cover to reach maximum employment. he does see factories pushing up inflations well into next year, but it sounds like it's transitory. be patient, wait for them to
come back down. we get a lot of questions on this tomorrow as he testifies, along with janet yellen, these are testimony hearings in the house and senate related to the pandemic and presumably its impact on the economy and monetary policy. definitely, investors are saying, maybe this does support the fed lower for longer. one thing that hasn't changed, the fed won't watch the virus, it will watch the economy. that determines what it does. the next few weeks are critical to find out what the oh micron variant is. well the cases be moderate, will live go on unusual? that's what nobody knows in the fed will be watching closely. certainly jay powell's testimony when it comes hours from now. haidi: our global economics and policy editor with a look at what to expect. jumping up to 18% in the session after we had a report that they are in talks.
manufactures, automotive air control equipment, including air conditioners and modules. it was reportedly an exclusive talks to buy 59.9 9% stake in the south korean-based company. that's according to the economic daily. their shareholders will get that find as early as in december. they are still discussing that final price. last week to be decided at around 6,000,000,000,001. we are seeing a pretty substantial move in them trading at the moment. >> the world health organization is worrying that the omicron variant could have fresh infections with infections. it will cause considerable uncertainties with the new variant, it appears more transmissible than previous strains. south african authorities say children under the age of to
account for 10% of total hospital missions of the countries omicron epicenter. australia's economy may post the second-largest contraption on record when gdp data is released. the economists he gdp falling 2.5% from the prior quarter. containing an outbreak of the delta coronavirus variants. australia has boosted its official production forecast by more than 5% to a record, despite rain and flood damage. honduras is set to declare its first female president with leftist opposition candidate on track for a landslide win. her election would in 12 years of conservative rule by the national party. she has pledged to tax the risk and overhaul the sale of neoliberal model. she is considering whether to end diplomatic relations with taiwan in favor of china. twitter's cofounder jack dorsey is stepping down as ceo, effective immediately.
he will stay on the board until his term expires next year. he also has two payments company square. he is being replaced by the chief technology officer, a leading figure in creating a decentralized standard for social media. global news, 24 hours a day on the air and on bloomberg quicktake, powered by more than 27 hundred journalists and analysts and more than 120 countries. china's manufacturing activity likely remains due in november. we will review the pmi data with the economist. up next, the latest on omicron across asia as we await information from drug -- drug makers on the efficacy of the vaccine against the mutation. this is bloomberg. ♪
haidi: pfizer's ceo says the drugmaker will know within weeks of its vaccine is effect against the omicron variant for covid-19. he said the covid treatment pill is designed to have a variant. he spoke on bloomberg television's balance of power westin. >> it definitely has the characteristics to create a concern for many reasons. but, also we have been preparing for a moment like that for months right now. i feel comfortable that the playbook will work. so what is the playbook? what is it about this virus? protecting against infections and the third is to treat it. i think there are things that are not very clear yet. one is the clinical manifestation of this virus. is it creating more severities
or not? is it transmitted easier or not, is it going to younger or older people? these are things that have cases coming out in the numbers are getting bigger for something we will know in a few weeks. the second is, does this virus variant have the ability to escape the protection of our vaccine? i think that that is something we will know in a couple of weeks. and i don't expect, in any scenario, to be that we don't protect. i think it could be anything from the protection remains very high to protection is reduced. it is not 25, it is 70%. in the third thing we need to know, is if this virus can escape the antiviral effect of the treatment. now we have this.
again, the expectations for the oral pill, which is our pill, i don't expect that the virus will escape the antiviral effects. the pill molecule was designed with that in mind. it was designed to be able to maintain efficacy while the variant, the virus mutates. in this is why we have chosen the mechanism that does not depend on the spike in mutation. but it is attacking something that the virus needs to replicate. it has nothing to do with it. by the way, this protest, the virus needed this. it's very difficult for the virus to develop a variant that
doesn't need what we have been inhibited. i think our pill will work very, very well. we are waiting to see if the virus escapes the protection of our vaccine after a booster dose, which would be very difficult, but we need to second. we have already, last friday, started the process of the tailor-made vaccine. we will have it ready within 100 days, but we have very high level of confidence that we can manufacture it by billions if needed. >> let's take that apart. on the clinical front, as i understood, you said it will be a you weeks before we know how contagious since variant is and how verlander it is. are we talking a month or six weeks? >> i think the more data we
accumulate, the more accurate the prediction would be, but within a month, we will have a lot of information if this is more verlander or replicates and if it overtakes. shery: hong kong has joined governments around the world and expanding travel restrictions amid the spread of the omicron variant. this says china pledges more vaccines for the nation. for the latest on how asia is coping with it, let's ring in our chief north asian correspondent stephen engle in hong kong. still an abundance of caution across asia. stephen: they built that caution into the restrictions more so than in the west in the united states and europe. hong kong had its third case at the airport. singapore is contact tracing for
airport workers who might've been in contact with two known carriers of the omicron variant that transited through airports. none of the airports are dealing with this variant. not in large numbers, but we -- but they do have the buffers in place to catch them. i want to come across the headlines crossing the bloomberg terminal, and then we turn our attention to china. china is essentially close to the outside world throughout the pandemic. but china is saying, this according to cctv state broadcaster, the center for disease control is saying that it's vaccines are still effective versus omicron. this is an interesting headline as we are hearing with his xi jinping, the president speaking at the china-africa cooperation forum, pledging more vaccines. let's hear from president xi.
>> to help the african union achieve its goal of vaccinating 60% of the african population by 2022, i announce that china will provide another one billion doses of vaccines to africa. stephen: other asian economies and governments are dealing with the omicron variant, and japan is banning all foreigners until they can assess, properly, the extent and nature of the omicron variant. at the same time, we are hearing from the boj governor speaking for the first time on the omicron variant yesterday. perhaps he is downplaying it, calling the markets a little bit. but this is what he said. i'm quite sure the japanese economy would overcome the impact of covid-19 and would be in the recovery and growth phase within a couple of months. we heard from jay powell and we will hear from the governor. these asian companies --
haidi: let's get you more details on a story we broke this hour. bluebell capital partners has asked glencore to separate its coal business because it has become a barrier to investment. energy and commodity investor joins us. what are they pressing glencore to do and why? >> good morning. as you say, bluebell had written to them and essentially with air asking for is a separation of business into what they describe as carbonized anti-carbonized assets. they want glencore to -- it is
currently causing a cold discount on the stock. they think valuation is being hurt by housing the coal assets inside the wider group. they also talk about a moral imperative. it's not just a decision being driven by value for shareholders. they also think glencore has a moral obligation to separate business. shery: many of glencore's rivals are selling coal mine. what has the company's approach been? david: land core has been different. we have seen companies like tencent group, php, they have all sold coal and they are looking to reduce their exposure. glencore's argument has been different. it said that the responsible way forward is for companies like apple -- for companies like glencore to manage it down into ultimately the people that close the operations down. rather than selling them to smaller companies who may not be subject to scrutiny, and might
look to raise output to recoup the cost of any acquisition. quite a different approach. haidi: this comes as we saw that new studies showing that the creek mine was really identified . has activists had much success in putting pressure on the mining session as a whole? david: i guess that issue is something that is just becoming -- rising to importance in investors attention in terms of its a really new tool for the pressures of these companies. and as you say, data showing that it's one of the most polluted mines in australia. in terms of the pressure, we have seen activists have some success on fossil fuel. they sold down coal, exiting oil and gas. we can only expect that we would
see more success from some of these activists in the future. shery: our energy and commodities editor. coming up next, china's factory slump likely continues during november. we will discuss the impli every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities.
shery: we do have the australian current account balance number coming through. bella expectations arrive from $20.5 billion in the previous quarter. this is for the third quarter. net exports of gdp, that reading coming in at one, also as expected and bouncing back from a contraption in their previous quarter as well. when it comes to the broader outlook before it comes ahead of the third quarter gdp numbers coming out on wednesday, that's
expected to show the true impact of the latest lockdown. that lockdown likely set the australian -- to the second ever. have seen a climbing on the account of stimulus. we are watching commodities, given the weakness we have seen an iron ore with continued strength across the commodities adding to that we just got. shery: we are looking ahead to china. the latest manufacturing number for november where the bloomberg intelligence team sees manufacturing stabilizing at a sluggish pace, but the strength of the chinese economy may be of drip -- may be of greater concern. great to have you with us. despite the fact that the expectations are quite sluggish, the gtv chart on the bloomberg is showing how new export orders have showed contraction. manufacturing is still weak.
what are your expectations for the numbers today? >> thank you for having me today. i think today's official manufacturing pmi might be stabilizing. i should expect a mild extension at 50.1. that's mainly because the supply constraints were reflected in the electricity shortage that has been eased notably in november as the policymaker has relaxed the function, policies as well as encouraging more electricity production. so, from a supply perspective, manufacturing pmi may have -- they have been stabilizing in november. shery: can you factor in omicron, given how we have seen beijing trying to achieve that covid zero strategy? >> i think the information has been limited so far on it. but on china's covid zero strategy, i think there isn't any room for china to tighten it
further. there should not be much impact on china's consumer sentiments or manufacturing center activity, even with the variant. its dynamics zero covid strategy until probably after winter olympics or even after the national people's congress next year. in the near term, these sectors weigh on consumer sentiment, but it does not impact on china's production with recovery. haidi: do we see a production recovery accelerating after the winter olympics, given that we know there has been a suppression of industrial activity leading up to that? >> looking ahead into 2022, supply-side recovery will most likely be stabilized at current levels. instead, i might be looking for a growth driver rotation away from supply-side and industrial outperformance this year to more promising consumption recovery next year.
and i think that the consumption recovery might be accelerating after china departs away from the zero covid strategy. that i think will most likely happen into the second half of 2022. haidi: if we see likely easing from the pboc early next year and that potentially curbs the gains on the yuan, does that also then tighten economic conditions further? >> i think for pboc's easing outlook, i do expect the pboc to tear established next year. but i don't expect the policy rates. i think pboc might be keeping benchmark interest rates and keeping it unchanged until the end of 2022. in terms of easing, i don't think it's too much of a downward pressure. there is still room for cny to outperform, which might be
reflected with the index outperformance. and that's because it's mainly reflected on our views about how the man your dad -- manufacturing sector will be resilient. stabilizing rather than slowing down further into 2022. shery: are there any economic risks that could derail beijing's drive for common prosperity? >> in the near term, we do see the price for common prosperity without a pressure. prioritizing long-term gains in short-term pains. so the pain is mainly respected in this sector. i do see more risks. the slowdown we have seen so far is mainly coming from investments and construction activities. it hasn't have much impact on consumption. we know that china's property sector is picking up two thirds of china's household.
the stabilization is -- the property sector is not stabilizing, or if it is slowing down further, we worry there would be an impact on wealth and it depends on a broader base slowdown in chinese economy. shery: chinese economist at and west markets. look at the markets, broad outside for the nikkei and the kospi and the rest of the asian markets with the nikkei right now seeing every sector gaining around technology and energy leading the gains. the kospi is overseeing its best day in a week. the asx 200 is gaining more than a percent at the moment. this is after the asx 200 tumbled with banks falling to the lowest since may, given the fears of her only crown in their reopening and cyclical trades as well. qe starts gaining nine tents of 1%.
early observations suggest a mutation could be milder than deltek, but the doctors warned about the possibility of a new strain. until africa improves its immunization rate, more variance are likely to emerge. >> until africa has not been fully vaccinated, you will have to carry on with booster vaccines going forward. it's actually a no-brainer. most of the people living in africa that can get a vaccine, especially hiv, will be the people where you will see the new variant starting to evolve with mutations. so to answer your question, for the foreseeable future, yes, you will have to get your boosters. whatever comes out of africa
will be able to be treated by the boosters. until africa has been vaccinated. >> how are you thinking about the travel bans without the appropriate course of actions until we know more? >> it is very early to just put terrible restrictions. i understand each and every country would like to protect its people as much as possible. but you also need to say, just wait and see what will happen. once we have figured out what is happening, then we start to say, ok. let's bring in travel bans, or whatever you want to do. in the meantime, with the countries needed to do was to encourage people to go back to the wearing of masks, the social distancing, what we also say,
the ventilation, get yourself vaccinated and stay away from crowds. that is the better thing to do than just closing the borders. i'm quite sure the viruses in many countries in any case. haidi: south africa's medical association chairwoman there. but turner says that a new vaccine to fight the omicron strain could be ready by early 2022, if required. the ceo spoke with bloomberg about his outlook on the new variant. >> i definitely think that this threat is something that we have not seen before. the number of variations in mutations on this virus are surprising. they are not theoretically impossible, but extremely rare. so we have to take it for the serious threat that it poses. we have a lot better weapons to
fight back against it than we did months ago. but i think, again, worrying, we always should be worried when we are under attack. i think it's what we do about it that matters. emily: what will we do about it and what will modernity do about it? will distraint elude the current vaccine, and what are the challenges, if that's the case? >> moderna had a comprehensive plan that we already prepared for this eventuality. it comprises a number of steps. one, quite rapidly verify whether the immune response that a boosted patient will receive from our vaccine is sufficient to protect against infection from this omicron variant. that will be known in the next couple of weeks. second, we have activated additional tests for multi
variant vaccines that we have already got in testing. in this case, the beta variant and then the delta. we already have human trials and data. and that had a very quick follow-up. we have already started a program that we see within 60 days will take us to a place where we have a fully variant specific vaccine should we need it. i don't think there will be one solution to this. there will be a number of defensive steps we will take to make sure we are fully protected. emily: what's the fastest possible timeline that a moderna omicron booster could be available? >> availability to the public is a function of regulatory approval on the emergency use, and that will be largely determined by the fda, which, i'm sure we'll look at the data, the facts on the ground, the
level of threat, and decide how much additional data is needed for the sequenced variant to be able to allow it to be more broadly available. i can't to speculate on that, i think the piece of it that we control, it's on the onset. we think we are in a position to do, based on the tenure of platform development we have done with mrna vaccines, they were in an ideal position to respond within the 60 day timeframe. emily: talk to us about the new science involved than what we know about aunts -- about antibodies and antibody levels, and how that's informing your work. >> is a very good question, emily, because i think the sole question of antibody levels is very underexplored or under measured aspect of this pandemic. we talked about antigen testing to see if you have been infected. but what you want to know is how strong is the antibody response
in the body in response to the vaccine. that's something that we have relatively little activity and, other than the fact that the people are publishing paper and academic showing strong correlation between antibody levels in vaccine breakthrough. so that the hard antibody levels very clearly correlates to better production. and of course the fda is making decisions for booster approvals based on antibody levels. but i think as we enter this third phase of the pandemic, hopefully not a serious who -- serious one, but it could be. it could be how our antibody level is adequate or not to protect us. it's really those two measurements that have to have them side-by-side. we will tell you of our vaccine is still effective and it will be by measuring antibody levels against the new threat.
that should be more broadly available. if we have a big threat, we have to take protections in terms of masks and curtailing travel. but importantly, we will want to make sure whatever boosters we have we make available to the most vulnerable. shery: coming up, a new test ahead for chinese dollar bonds as they tried to sell investors. we will get you the latest. this is bloomberg. ♪
>> this is "daybreak asia". fed chair jay powell says the omicron variant poses risks to both sides of the feds mandate. the testimony ahead of the senate appearance, powell says the virus could reduce people's willingness to work in person, and intensifying supply chain disruption. they do not discuss specific policy actions were tapering. china has decided to buy another one billion vaccine doses to african nations as they grapple with the omicron variant. president xi jinping said 600 million doses will be donated while the rest are produced by businesses. he spoke via video at the forum
where he also pledged $20 billion in credit lines and investments over the next three years. australia could reportedly go to a federal election under a plan to bring forward next year's federal budget. the city morning herald said the government has named march 29 as a date to release the economic blueprint. but the papers said that timeline may change at any time and lawmakers believe the prime minister will go to the polls sooner if you believe he can wins another term -- when another term. japan's factory production edged up following a three-month slide. it has declined to the global supply chain crunch was easing before the emergence of the omicron virus variant. production rose one .1% from september, a economist have seen a 1.9% gain. a separate report shows continued strength in the labor market with unemployment going down to 2.7%. global news, 24 hours a day on air powered by more than 2700 journalists and analysts and
more than 120 countries. haidi: the newfound stability and chinese dollar bonds will be tested this weeks as one of the market's largest issuers announced whether creditors agreed to a debt some for default. let's get a look at our editor in hong kong. what are we watching for? >> this new exchange deal -- it is really in focus and the result of that will come late on thursday, so probably we will find out friday the following day. but ultimately, it is very large borrowers in the offshore market, the dollar bond market that represents 5% of developers debt in dollars. so, any kind of restructuring or any kind of default could potentially throw out the very fragile recovery that we have
seen for the china high-yield bond. of course we know that the eager institutional investors and investors like elian's and go -- alliance and goldman are moving faster. we are facing the risk when we go into december. we also have come to the end of the grace period for the two notes sold by evergrande. shery: the onshore market has remained pretty resilient. rebecca: absolutely. throughout the crisis, the market, which was much bigger, has stayed much more stable. we have not seen these volatile swings we have seen offshore. ultimately, that does allow some liquidity to flow through into the onshore part of businesses. typically, it's very difficult to transfer it from the onshore business into your offshore to admit funds into a stable
result. many of these that have for years relied on access to the dollar market, will need to see yields coming down. as with all micron and all the variance, we yield a backup above 20%. some of that hope and optimism that we may see the end of these higher borrowing costs, that unfortunately has not really happens. i think the likelihood of what we will continue to see is other stress developers looking to do possibly more exchanges, and possibly find other ways to stave off their defaults. we may see more asset sales as well. >> our china credit editor rebecca wilkins. we will hear from the ceo about the $18 billion strategy to drive further into the ev space. this is bloomberg. ♪
shery: nissan is making an $18 billion investment to turn in cv maters -- models into a pillar of growth. the japanese vehicle maker has been growing at a good pace, despite the uncertainties brought by the pandemic on the global chip crunch. >> the situation of the dynamic in the chip supply shortage are
impacting the industry. so how we can anticipate to be ready for the community will be a key for us. so far, our company is able to manage this fy 21 outlook, and reactivity growing and doing the progress at the right pace. definitely, we need to walk with the partner supplier to make sure supply chain is going to recovery -- recover in terms of this. it's something that we need to further anticipate, for sure. >> how specifically are you concerned by this new variant? >> first of all, i would like to make the right level of the company care to our employee, to the family, how we can make sure not to be affected. how we can make sure to continue to do so in the company, and moving our business.
i would say we need to anticipate many cases, and we need to make sure our business will run at the right case, despite the uncertainty of the new virus coming. this is something that we are discussing a lot in our global basis to make sure that our employee in the family safety and their health is taking care of. and we put a lot of priority onto that in the forecast onto that. stephen: let's shift our focus to this big $18 billion, two trillion yen investment over the next five years or so to electrify about half your fleet by 2030. how do you plan to fund this ¥2 trillion -- ¥2 trillion investment in ev's? >> we are planning this ambition. this is where we want to be,
what we are aiming for. we want to make sure to provide safer, cleaner, inclusive world and make our company a better proposition. the ¥2 trillion of the investment is quite huge, but we have already been investing. we are talking about the products or portfolio shift more onto the electrified vehicle where that vehicle investment and they new electric art vehicle investment will balance that out. while we will keep the momentum, which means the revenue with the new vehicle can have our presence. all of this balance, i am very confident that we can make this future investment while we are growing our company itself. haidi: nissan's ceo speaking to bloomberg's stephen engle. this get you a quick check of
the business headlines. $2 billion in common stock in its latest post bankruptcy financial fix. this share offers as much as 6% in new york. the company says it is affected immediately. in includes remaining $200 million that was authorized for repurchase of the listing. tencent said it will soon begin function -- shouldn't -- soon begin testing of the function. it's a big step towards bringing down some of the barriers and china's most popular social media service, falling on my with a push from chinese regulators to eliminate the so-called wild guidance. valet, the roads economics idle producers since the beijing winter olympics is the turning point for the commodities. they have lost about half their valley since mid july and their outlook to contain pollution. they say it will ensure clean
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