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tv   Bloomberg Markets Asia  Bloomberg  December 1, 2021 10:00pm-11:00pm EST

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ending the purchases in the first quarter or maybe early second quarter, right now i highly support that. juliette: we are still seeing the impact of the omicron variant. we do have some movement. outperforming those losses. that was the biggest two-day slump since october of 2020. looking at crude, a little bit of a rebound. we are watching a stronger
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korean money. there is the case for a rate from korea. >> let's have a look at the opening. a bit of a downdraft taking place. we have rising equities. many of them are going below the gain line. a tad weaker. concerns about the new variant. it may well hit the vital tourism industry. there is that to look out for. hinting at losses. that has moved to the downside.
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the dollar is down one third of 1%. now getting to the scoop. some consumers have decided against it. let's get to our tech reporter. walk us through some of the nuts and bolts of all of this. >> what is happening is after suffering from a global supply shortage, apple is now confronting another problem. slowly demand. the company has told that demand has weakened.
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some consumers they have decided against getting the new iphone. apple has cut its goal. they are hoping they can recoup some of these orders. now they are telling them there is no need. juliette: given all of the uncertainties, it is probably that -- not that much of a surprise. what does it mean in general for apple? are they still on track? >> they expect record sales for this holiday quarter. it is still possible that apple
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may have a record-setting order. juliette: our tech reporter keeping us up-to-date. the new variant is making its way to more countries. south africa saw its daily number of cases almost double. >> this new variant is a cause for concern. but not a cause for panic. we have the best vaccines in the world, the best medicine, the best scientists. we will fight this variant with science and speed, not chaos and confusion. >> the virus is also a risk to investors. some are open to a faster rate
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of reduction. >> going into the september meeting, i thought there was a strong case for tapering at a faster pace area since that time, the data has come in. i am open to considering that. >> many economists suggest the fed should double the size of the taper. would you be in favor of this? >> i measure with the appropriate case is. ending the taper in the first quarter, i would support that. in a couple of weeks we will learn more about omicron. >> what do you need to see? a little confirmation to make
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sure you're making the right decision? >> the momentum of the economy is clear. we have seen very strong labor markets. the new issue is the risk of omicron. we do not have enough information yet. the economy is becoming very strong. if the omicron variant turns out to be like delta, one thing we have seen over time is there is some activity. each time it is last. the economy is learning how to cope with it. we have had a higher vaccination
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rate. it really depends on what the risk is. >> a message from the federal reserve bank of cleveland. where are you in this debate? does it now seems like the base case? ? of a couple of rate hikes >> that is what we are seeing price then. >> why do you have that? >> we think the fed will do less in terms of wanting to see full jobs growth. before they start to make that decision.
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how is this new variant going to pan out? nobody knows. >>? ? where do we go from here there seems to be a lot of wiggle room. there is also a chance that they are behind the curve. >> if you look at the way the market is reacting, i think that would continue into december. you have a. . much more hawkish fed that is why we are not seeing that rotation back into tech. i would not be surprised to see a little more throwback for u.s. equity markets in a place like china. a little bit more wiggle room. juliette: a little bit
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potentially of a pullback as we try to assess this new variant. it will take some time. what do you do with that? >> i think these ideas, nothing has really changed as of yet. we have seen a little bit of a pullback in the equity market. how transmissible is this disease? what is the efficacy of vaccines? no one really knows. now is not the time to hit the panic button. we will see how it goes. we could see a little bit more downside juliette: juliette:.
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we also have the complication of the oil picture. then you have the opec-plus meetings. it will be a really fine balance for supply. how does that play out? >> if reopening goes as we expected, clearly you would see crude go back up to the the $85 a barrel level. whether countries like china, if we move back into a lockdown situation. that will obviously impact demand for crude. very difficult to call right now. juliette: we want to get more of your thoughts.
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let's get to new york and get the first word news. >> sumer prices rose 3.7% in november. that extends a run of deflation -- inflation 28 straight months. the data reinforced concerns that pressures will continue. the president of turkey has replaced his finance minister. riff steepen over interest rate cuts. he regularly asserts his unorthodox manners.
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expectations are growing that there will be a threat from the new virus. they are now examining forecasts. the women's tennis association is suspending all tournaments in china including hong kong effective immediately. the organization says it is because there are concerns that a star is not free. she posted an essay on social media about a month ago accusing a former chinese vice premier of sexual assault. 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. >> let's have a look at what we have going up ahead. they are in talks whether to increase that. juliette: plus, concerns about
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omicron and the latest on the virus situation in india. this is bloomberg. ♪
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juliette: china is said to be closer to tightening laws. the country stockmarket regulator has denied this. they could really just accelerate companies. if regulators crackdown. rishaad: a lot of this is up in the air right now. certainly it is another overhang.
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that is a lot of the structure. >> they have had a rough time of it. they don't need this as well. give us a sense of what the machinations are. >> 70% off on that stock. it is pretty well up in the air. this has been going on for quite a while. i think we have already seen a lot of this reevaluation. recently we have seen picking up cheaper value tech names in the market. the view on china is very
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divisive. you see this across the banks. part of that will be the offshore names. juliette: technical overweight on china. i am interested in what you are doing and the region. >> that is not the official house view. certainly we are debating what the 2020 to outlook will be. will we be overweight in china? from my own perspective, we have been quite overweight in equities this year. they have done very well. i am looking at some preferences for other countries in the region. possibly japan. some of these countries like indonesia and india, how will they be impacted?
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that is what is going into the decision process. juliette: part of the complication is because asia is very risk adverse. very stop and start. constant reopening's and lockdowns. we have seen the underperformance of asia. is that something that is concerning? >> that is exactly right. we have looked at this in terms of asia. we have three different buckets. hong kong has a zero covid policy. japan is living with the virus. these countries are much quicker to move to lockdown. the severity of the disease in the efficacy of the vaccines will really play a part.
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which of those buckets do you want to invest in? i am expecting a little more stop and start for asia next year. rishaad: with the way the regulations are panning out, there is an argument that it could be positive in the long run. if they stop from buying up all these minnows before they get to their full potential. it might ultimately be good. >> that is certainly one view. we have seen increased regulation. in places like europe and the u.s.. they have continued to do very well. this selloff in china tech is mostly done now. i think foreign investors are getting a better sense of how it will layout next year.
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this will still be the longest and deepest regulatory crisis that we have seen area rishaad: have a great one. thanks a lot for that. if you are a bloomberg subscriber, you can use our interactive function tv . can chat and send instant messages to our team. this is bloomberg. ♪
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>> this is a worldwide challenge , a byproduct of the world economy shut down by the pandemic as it comes back to life. prices are still out of sync as the world comes back. rishaad: you are back.
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the fallout from the global supply chain crunch. we just heard the president saying the administration has worked to alleviate supply chain problems. he calls it a national -- natural byproduct of recovery. their record volumes moving through los angeles. he pointed to higher demand for goods. it would not go down even after the crisis. british columbia bracing for a deluge. the damage has exacerbated supply chain challenges there. and threatening to raise commodity costs even further. you can find out more on these supply chain stories.
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juliette: let's get a quick check of the business headlines. kaiser group is an hour away from a key deadline. they have offered to exchange 400 billion dollars. the offer expired thursday. if the deal fails to win support, they may not be able to repay it on. they could consider a debt restructuring. general motors has boosted its forecast. the cfo says sales have been strong. he says the semiconductor crunch has stabilized. he does not see normalcy happening at least until 2023. fujifilm will spend millions of dollars to expand its u.k.
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pharmaceutical plans. the financial times says the japanese conglomerate will double the size of its facility in england and create 350 jobs. they manufacture active ingredients for the covid vaccine. apple has told component suppliers the demand or the iphone 13 has weekend. -- weakened. they cut their production goal by 10 million units. the company is looking to make it up next year. rishaad: let's have a look at these gaining stocks. a little pressure on the territory at the moment. the clamp down on junkets. we are looking at what is going on at the moment.
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the government is confirming some of these closures. they decided to pay a bonus to nonmanagement employees. tech also in the frame. what is happening with regards to these variable interest entity structures. we are seeing it fall overnight. they are matching that here in hong kong. chinese markets are all for their lunch break. juliette: let's have a look at the global macro movements. we see the snapshot of how assets are faring. we have seen some gains coming through in the region. south korea doing well.
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we had that high inflation. still some pressure coming through in japan equities. we will have a full snapshot of the market coming up the. this is bloomberg. this is elodia. she's a recording artist. 1 of 10 million people that comcast has connected to affordable internet in the last 10 years. and this is emmanuel, a future recording artist, and one of the millions of students we're connecting throughout the next 10. through projectup, comcast is committing $1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. mom, hurry! our show's gonna start soon! i promised i wouldn't miss the show and mommy always keeps her promises. oh, no! seriously? hmm! it's not the same if she's not here.
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>> this omicron thing is pretty new but i'm heart and what i'm hearing the last few days. >> airlines are an easy target for changing of signals to the public. >> we had a very strong thanksgiving in the u.s., it seems to be less vera lent. assuming that holds true, i think things will just continue
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through. >> we seen a very significant recovery in u.s. markets. our airplanes were full. >> what i'm telling my team in the u.k. is, as quickly as you introduce those measures, it turns out they're not as significant. >> airline executives on the omicron threat which happened just as were heading into the holiday season, fouling plans for many people hoping to get home. >> were looking at these japanese aviation link travel companies, there's a lot of
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confusion with this decision to halt inbound flights this month. it's disrupting plans for people and also businesses with contradictory statements from the government and also helping to fuel uncertainty. what are the rules, this is the question. juliette: absolutely, and these travel plans are coming pretty quickly, not just japan but other countries as well. south korea implement in a 10 day quarantine and indonesia with a 10 day quarantine as well. a lot of people have been putting their faith in the fact that the there would be a rebound and the hope they could get home soon many haven't been at home the whole time during the pandemic, now struggling to keep up with all the changes and what does it mean for your travel plans? do you face quarantine or further testing? let's look at how markets fared today. we've been talking about the relative outperformance of asia,
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the s&p 500 having its biggest two-day selloff since october 2020. and unchanged picture on the msci asia-pacific index. we've seen some of these markets perform quite well, the likes of korea doing quite well. and futures for volatility down by around two basis points, here as well as some of the other markets we've been looking for. i was hoping we might have a quick look at some of the asian equity markets. i mentioned that we south korea doing quite well. taiwan up by about .5%, so the weakness mainly coming through in the likes of japan, hong kong, and china. let's get the first word news with vonnie quinn. >> the first confirmed u.s. case of the all micron virus has been detected in california.
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the patient has mild symptoms after traveling from south africa. south africa's daily cases almost doubled in one day to more than 8000 as the strain takes hold. fed chair jay powell has set for the second time in two days that officials should consider -- he told the house financial services committee that inflation has become more persistent and policy will continue to adapt. >> going into the september meeting i thought there was a strong case for a faster pace than what we had announced. since that time the data have come in supportive of that case, some very open considering tapering. >> and china would close -- would close a loophole to raise
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overseas capital. it may be finalized as soon as this month. china's market regulator said on its website it is not true, without giving further details. meda says it has removed chinese network of more than 5000 facebook's -- accounts preview the campaign involves the fake persona of a swiss biologist name wilson edwards who posted that the u.s. was pressuring the wto plan to blame the virus on china. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. juliette: we are just getting some breaking news, according to
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ifr, we don't have a lot more detail yet but an interesting move at $272 for a hong kong listing. rishaad: a lot of people will be looking at this in light of the story we've been running, it could accelerate this china or hong kong homecoming tied with how this particular listing goes for weibo. wti is up by one point when he 5%. the price swings that we've been witnessing for the energy market after the first of two days of meetings to debate a planned increase of output. are there any signs of which way
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they will go with this? >> the message from the energy minister who happens to be the president of opec, to arts, prudent and proactive. and that the overall tenor, although they didn't really discuss the output, the data that came out was about the planned surplus of oil in the first quarter. they had predicted that we would have 3 million barrels a day in the first quarter. they revised that number down to 1.9 million barrels per day, but they had an alternate scenario and that was four point 8 million barrels per day of surplus if omicron is worse than expected, underscoring all important production inputs will be when opec-plus meets on thursday.
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juliette: what would be the rationale behind some kind of surprise move from opec-plus? simone: the consensus is that opec is going to pause that suspected increase of output come january. the surprise would be continuing with the plan, some producers we believe are going to endorse that view. one key factor is the fact that african countries really aren't even meeting their current output projections. that could be the reason that surplus was revised downward. another reason is potentially the uae in the past has emphasized that they want to continue pumping oil, that brings in more money and potentially we could see an output cut out right in january. again, that is less likely, but
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that might have to do with petroleum released around the world, and some less tangible things, if iran comes back to the market perhaps are just softer projections for economic outlook. rishaad: i reporter taking a look at opec. let's look at the key story some investors will be watching out for in india today. on the virus and vaccination progress, six people from what it calls at risk nations tested positive. it does close on december 6. we will look at how markets reacted to all of that. juliette: coming up, the women's
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tennis association suspends events in china on concerns about punks why. -- peng suia. and the spread of omicron and how it could impact india. that is next. this is bloomberg. ♪
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>> we know that people above 45 with underlying conditions are at highest risk of getting an infection but we know vaccines are likely to have some protection. >> we knew that it was just a matter of time before the first case of omicron would be detected in the united states. >> it's too early to know precisely the impact economically. we need to learn more about the transmissibility and severity of this variance. rishaad: the omicron threat spreading around the world, with cases in the u.k., switzerland and brazil and the first case in california, too. juliette: and we are seeing how india will bolster covid-19 scrutiny against the new omicron variant.
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let's get some insights from the founder for economic policy. great to have you with us. we still run know a lot about this variant but do you think india could be a little bit better place, given that you hope there some kind of immunity and because the vaccine rollout is stronger than where we were with delta? >> that is probably right. there hasn't been a reported case of omicron in india, but it is likely just a matter of time and matter of detection. at least in urban india, over 90% of people have been already exposed to the virus in that proportion is also likely hi in other parts of the country that there is already immunity through exposure, and on top of that, 40% of the adult
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population in the country has already been fully vaccinated. a number that is probably higher than in other countries of similar economic status. so there are two things protecting india, and of course the big unknown is whether the vaccines are protective and to what extent against omicron and how virulent it is. and how many deaths and infections it's likely to cause, which is the big unknown out there. juliette: and if you say, this point there hasn't been a case detected in india, like many countries, it's probably just a matter of time. do you think it will get the government to try to encourage people -- more people to get vaccinated? >> i think the government is already doing its very best to get people to get vaccinated. unlike the first half of this year when it was supply issues keeping down vaccination coverage, in the second half and particularly in the last month or two, it's really a demand
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issue. the vaccine supply is piling up in cities and people are not using them. so the government is already trying it's best to encourage people to come out and get vaccinated in the same way they did after the second wave or in the middle of the second way. since then people have just been a bit lackadaisical about coming back to get there second shot, or getting vaccinated at all. rishaad: there's a lot of talk that this particular variant at may not really respond, or this vaccine may not respond to this. that is in the back of people's mind, which may be one of the reasons why people don't go and get vaccinated or immunized. and with people -- it can spread like wildfire. do you think lessons have been learned from the second wave? >> i think the main lesson from the second wave was in
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preparedness. there's not a lot people can do in a dense population like india, especially in urban areas. omicron appears to be more transmissible than delta and will likely spread very quickly. hope is that it would cause mostly mild infections, because that seems to be the evidence that is emerging from other parts of the world. if that were to be the case, and hopefully the damage done in terms of hospitalizations and stressing the health system will be less than we have seen in the second wave. rishaad: what about the virus itself? what research has been done come? in india itself as well and the results of that in terms of the genomic sequencing, at least. >> india has ramped up its
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genomic sequencing capacity since a year ago. the proportion has increased significantly. i don't think it will be found lacking in terms of identification as soon as the cases come out. it is significantly lower than many other countries and that's probably why it's hard to find the variant just now in india. but i suspect that india will watch what is happening in other countries as well and will calibrate its response to its transmissibility and results of the variant in other countries. the careful of the borders, and do not ban travel to many countries just yet. the main move so far has been to step up travelers from some
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countries and that is the appropriate response that wto supports at this time. juliette: we thank you so much for your time. let's check in on the indian markets as they open for the trading session, as we have been seeing, a little bit of mixed movement coming through in asian equities. again from this insects and the nifty but -- a sinsex and the nifty. starting to see a bit more coming through in asian equities versus that big selloff was on wall street over the last couple of sessions. rishaad: let's look at what we have coming up on the program. the decision to hold all events in the country due to concern with peng shuai's safety.
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this is bloomberg. ♪
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juliette: the women's tennis association is suspending all its tournaments in china, including hong kong. it's been more than 10 days after the international olympic committee's president held a 30
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minute call with peng. >> all kinds of people were trying to get in touch with her to make sure she was alive and healthy and not in captivity and all those sorts of things. we are the only organization -- the only organization that's been able to establish that is the ioc. everyone should be reassured that she is fine. rishaad: let's get the details from our china editor. this is a symbolic move more than anything else. >> the wta has said clearly that if it goes against family values they have to take a stand. normally they have rapidly backed down when challenged by china. is going to put a lot of
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pressure on the olympic committee going into the world games which are now weeks away. juliette: what does it mean to the wta, and of course we are all concerned about her well-being. >> obviously they're not going to have any tennis events in china due to covid. the editor of the global times has just tweeted his reaction, saying the west has not been letting her say what she wants to say. it has to manage its message very carefully. rishaad: let's look at the chamber of commerce in china and the upcoming beijing olympics.
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the biggest threat to businesses in the country is expanding its influence over global strategy. >> business is booming. the energy crunch we had in september seems to be over. surprisingly, very fast. of course we have the headwinds of the real estate sector and the aging of china and the shift from quantity gdp focused growth into more quality. so i think all of us have to see how it pans out for us. but we are far more worried about the politicization of the next months to come. of course the highlights might be the olympics. >> i want to talk about your report, it's quite hefty in phrasing. maybe you could tell us a bit more about what that means.
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usually you see that kind of conflict between the u.s. and china, but how is europe affected, and can you give some examples? >> we have a part that reaches decision-makers from the chinese government. it is certainly supposed to be a wake-up call for our companies over here in china. it is something that in the west was done by a private company, and of course china wants to come to the table and beat more into a state centric decision-making process. but china is really keen to do this. second right companies are creating technology and first-rate companies have standards.
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>> could you maybe give us an example of how that would be a negative thing, if the policy -- give us a tangible and intangible about how that might work against private enterprise. >> if artificial intelligence get set by the industry, then of course it has a far more business related background, whereas with the state background it's a far more intelligence driven background. china wants to have the upper hand. china has realized if you don't hit the standard you are not really sitting at the big table.
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the new plan goes in the direction of high tech and this is where the west have been doing that, as pretty much offhand industrialized in the decision-making. this is a wake-up call. juliette: that was the e.u. chamber of commerce in china talking to us earlier. let's have a look at asian markets. we did have that today selloff, asian stocks have been performing a little better, being led by the likes of south korea and also taiwan. the philippines also rebounding after that big selloff yesterday . the philippines indicated they will continue with the virus curb. and stronger dollars -- dollar weakness, just over $66 a barrel . certainly investors are looking at jerome powell looking for a pivot to tapering more quickly.
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rishaad: also seeing casino stocks in the fallout form -- from sun city also making itself felt. both the regulatory authority, and a lot more to come. ♪
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>> from the heart of where innovation, money and power collide, in silicon valley and beyond. this is "bloomberg technology" with emily chang. ♪ emily: i'm emily chang in san francisco. coming up in the next hour -- dr. fauci: we knew that it was just a matter of time before the first case of omicron would be detected in the united states.


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