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tv   Bloomberg Markets Asia  Bloomberg  December 7, 2021 9:00pm-11:00pm EST

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amazon saying resolves avenue hit its delivery network as well as clients of cloud services. tom: let's get to the job in hand. we have the stock suspended with concerns about whether they will pay the bondholder. we saw japanese economy shrinking more than expected. we have a debut here, an ipo, down 6% and we have geopolitics as ever, ukraine, the sticking point between moscow and washington. we will talk about this. the virus as well. david: on the virus, markets have not gotten any indication in terms of the worst case scenario we talked about as recent as a week ago. in the absence of which we are
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still seeing risks going up, they had a massive move up in the u.s. overnight and you are seeing their play out across the region. . india is still closed. we are going to see gains. rbis on deck today. following bonds -- foreign bonds were flat. we are stuck below the 1.8% on the u.s. ten-year, one level we are tracking. i will go back to conversations around the feds. yvonne: the risk assets trade roaring back. you wonder what was behind this, right? yes, there are mechanical forces at play, but some fundamental reasons, given what we heard from china at least, the second largest economy shifting toward using stance. that s&p was basically like we forgot that jay powell retired the word "transitory" and we are back to the levels we thought of -- saw before. we are focused on the evergrande story. maybe default or closer to it
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according to credit agencies. stock is down 3%. evergrande, we are lower. the index is not doing too much right now. we talked about that not stellar debut. not a good test -- sign with planning for a tech company out of china to list, given the regulatory overhang on the back of the delist and concerns -- delisting concerns with didi. rishaad: let's get to the virus as well. we have the pfizer vaccine, sold by the african institute. looking at the efficacy against the mutated strain of the pathogen, we are looking about less immunity than some of the other strains we have of this particular virus as well. they found omicron resulted in a 44 per -- 40 pork -- 44% reduction in antibodies with people who have two doses of the
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pfizer/biontech shot versus the strain detected in china two years ago. that is a market overhang. let's find out more about what is going on market wise. we will start off with mohammed abu. great to have you on the program. i want to get away from the virus. it seems as though people are overreacting to begin with. it is certainly there but not on the back burner. i want to get to the story at the moment, how's theirs has been a lot of selling by big tech players, including cathie wood, jeff bezos, -- is that representing a shift toward value and do they think their stock prices are looking rich? guest: they are reflecting something. i don't think it has to do with value. i'm talking in the moment. what we are tackling now is
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coming to the end of the rally we saw since march 2020. rishaad: we see the nasdaq. guest: yes. we are not bearish yet but if it is been liquidity driving the rally, we are starting to see the beginning of the end of that . the market is pricing in the liquidity. above about 4 -- triple 8, you are pricing in the liquidity. at the end of every rally, you get a big step up by the retail investors. if you go back to that rally in 2017 with a big blow up in january 2018 and it all fell apart --what happened in the rally is that all of these buyers who were there buying on till march 2020 with that selloff, they will be there, selling into that. that doesn't mean they will go
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into value. i will not fall positive own bonds and other people are. the high-yield bonds may already be in. there is not really that evidence that people are fishing from growth into value. it has been one of those things-- people will be moving more toward defensive and maybe toward cash. that will make a comeback in 22. yvonne: euros thinking it can outperform. mohammed: for the next few months, yes. i think the dollar is going to be -- we wouldn't be surprised to see around $100. 2% to 3% higher and environment, hong kong suffered the lowest. it is not that great. even with the liquidity provision by china with their ratio cuts, we have this china property on the other side.
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they still need to do a lot more. rishaad: i think you alluded to this already. it's hard to call a top million market. it is not a point in time. what would be the sort of canary in the coal mine? you outlined a few toward the latter part of the process. mohammed: well, i think it will be the painful acceleration from here. inside selling, we are watching very closely. the main thing really is the ending of the central bank, b uying off assets. even with the more aggressive tapering, we will still get another $1 trillion of liquidity provided by the central banks. although from the fundamental perspective things look stretched, we will have to time this more carefully and markets will extend further a lot than we think.
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but we are looking and have been bullish since march 2020. we are looking to make the turn within the next three to four months. rishaad: do you see the china slowdown impacting the rest of the world? i saw those trade numbers yesterday, the imports tied, tending to suggest, what slowdown? that circulation is something that is working perhaps. mohammed: we were looking at this on the floor yesterday, trying to figure out whether the imports are rising because the price was higher or because the volumes were higher. we could not figure out from that. we only get the overall import data. what is undeniable is the reason for chinese underperformance is for reasons. monetary policy, virus policy, regulatory policy, and systemic concerns. systemic's concerns we addressed in the note yesterday. so far, it seems they managed to
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contain a but we are watching it closely. monetary policy seems to be turning. it is not there yet. there is a realization that things have gotten a little bit worse. the real key is going to come from looking at the investment number. that will be the key. rishaad: he will stay with us. let's check in with some of the first word news headlines. president biden is warning vladimir putin to united states to take strong economic measures to respond to any attack on ukraine. it is a two hour long video call. biden saying the u.s. will provide defensive material to ukraine if it is attacked. nato is blamed for -- guarantees the alliance would not station offensive weapons near russia. amazon saying a web services
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wrought havoc on the companies's delivery operations has been dissolved. it meant delivery drivers were unable to communicate through the app, leaving vans idle and parcels undelivered during a critical time, as we head toward the christmas holiday. it is working toward the full restoration. australia's saying it will not send government officials to the beijing winter olympics. athletes will still compete. the u.s. is also diplomatically boycotting the games, citing human rights abuses. new zealand says they will not send government ministers because of covid-19. china says the u.s. will pay a price for the diplomatic boycott of the games, morning there ties within the world's two biggest economies may be stronger. china's foreign ministry says the united states --
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the white house again, as we mentioned, pointing those alleged human rights abuses for its boycott. media reports say police have arrested a saudi national suggested of involvement in the murder of a journalist in 2018, the man detained at an airport in paris. he was a prominent critic of the crown prince. he was murdered inside the saudi consulate in istanbul. a look at the first word headlines. yvonne: we take a closer look at a pandemic impact zone. women and gender equality in asia. a humanitarian group joints to discuss their latest findings. david: authorities in beijing limit the fallout from the potential default on evergrande. they told us the last hour, it has happened. we will have the latest on the
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crisis facing one of china's most in-depth and if not the most indebted out there. this is bloomberg. --one of china's most indebted if not the most indebted out there. ♪
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♪ >> with friday's announcement, they answered that question. they have basically defaulted in the government. actually, announced policies after that to default, so they have already entered into restructuring but they are not too big to fail. rishaad: that was wang tao, who joined us earlier on the show. she is the head of ubs. she says the downturn to continue predicting sales during the rest of this year, the remaining month. yvonne: she says not a hard landing. there is no policy easing.
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maybe we could see that scenario but when it comes to the latest, let's bring in the updates when it comes to evergrande. we are waiting for details on that. david: while we are waiting, a look at the spreads. it highlights 14 percentage points. that is all you need to know about the uncertainty. there are high yields. i will leave it there. keep it short. yvonne: [laughter] not much to say on that cart. let's bring in stephen engle in hong kong. stephen: that's what i was going to say. wang tao said the d word is here. it is d-day, default. the rating agencies have not declared it yet. there a little more grace period on the grace period on these two bonds that were due on monday. according to bondholders we have spoken to, they have not run -- received. there is a default and they are in negotiations and talks to do that big debt restructuring.
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the question now is, how big a haircut? who will get the haircut? the worst haircut on the block? as these assets are likely to be sold off at a discount, whether you have listed units as well, so dolph at a discount, whether it is vehicles or property management. that is why we have seen pain on the markets, except yesterday because the day this came to a head, the markets were up again because of the policy support/ cushioning from regulators or the bureau, softening their blow, as one person told us. it shows it is not a moment. we will have to see where he goes from here but essentially, there was company news that most of the feet on this risk management committee evergrande has set up will be government officials. it is not a bailout. is a government-managed debt
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restructuring process that will be long and painful. rishaad: it is levied by other companies. kaiser suspended trading. they have this forbearance they are asking for. i think it's china yuan. let's not forget serial default we are hearing about currently. david: stare down the list of taking orders. kaiser was the first property developer to default in 2015. look like they are on the verge of defaulting again with $400 million bond maturing, yesterday , tuesday? monday, i believe it was. they halted shares right now. they failed approval for a debt slump to extend the payment deadlines. a group of creditors yesterday or monday sending kaiser of former forbearance proposal, maybe buying a time to find a way out, but again, a lot of these developers, the second or third tier developers have had
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similar liquidity problems. evergrande, not the big pile of debt, but still under pressure. david: stephen, our chief correspondent. still with us is ahead of pacific trading strategy at citi. we know, of course, the story and limited contagion, if you well. do you think investors are not at a point to turn bullish? what is that pivot. guest: we think we are getting closer. we have put together monetary policy we are looking at. it is in the red territory. we got to see some easing on the 4 horsemen. we got to see -- remember, there is $850 billion of debt that there is at threat in china from the property developers.
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the firewall is being provided by the major systemic banks. we are watching them closely as well. we are also watching these controllers and that will be providing some indication as to what is happening. the ratio cut triggers $183 in liquidity and $180 billion in bad debt. it is not equivalent but it is not enough. yvonne: india. i remember last time you were saying india. bhagyashri: still is. mohammed: i'm sticking with the 20,000 target for the indian equity market. they have ample liquidity in that market. this correction provides an
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option to step in. japan's inflation is going to happen in the way some people think it is. if you believe that japan is the big deflation/inflation barometer in the market, if you believe that, i'm skeptical about that. rishaad: you should be. they have a 2% target and they would remove that if everybody reached it. bhagyashri: if you look at japanese ppi, -- mohammed: japanese ppi is at its highest level since 1991 so if it a lot ever happen, it will be now. we are not there yet but there are other things. taiwan is looking interesting. their other places apart from china to put your money right now. rishaad: you say perhaps india but looking also elsewhere. how much are you looking at
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digitalization of that part of the world? you have seen these ideas come through. does this excite you? bhagyashri: it is difficult. -- mohammed: it's difficult to get people interested in those markets. we had this move in indonesia that that came out of nowhere and it was 10% up and the liquidity is very --but what we are looking at is the bottom of the potential range with emerging markets. if china declined another 10%, especially in asia, it will take down the rest of the emerging markets. if you go down 10% from here in china, especially in asia to 4300, i remember writing at -- in march that if asia has 4300 or more, china will do a backflip on policy.
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that will be what we see stepping up and be more bullish on china in general. david: just a pivot, it is the time of the year, not just these companies raising money. you're also raising money. tell us about that. every year we have a fundraiser and mohammed: a couple of years ago, we raise money for orphan children. we raise money for people who have been hit by covid in hong kong last year. we are raising money for the rising number of homeless people in hong kong this year. our policy is $880,000. our view is the market will be quickly -- rishaad: how do you contribute to this? mohammed: through the website. we can send out a link for anybody who wants to do it. you might as well give money to a good cause. david: you also have an
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incentive you're putting out there. we will get it up for the viewers to see. to the littlest donors, i'm sorry. that is what in store for you. it is a version of the three tenors. yvonne: and you are one on them -- one of them. mohammed: somebody will act as butler on christmas day at your home. the worst is you will have to hear me singing. rishaad: it would be interesting. [laughter] rishaad: good luck with that. thank you so much. you can catch up with all our interviews by using our interactive function and join the conversation by sending messages to our team and our guests during live programming. there you go. those are the three who may well be the new home. this is bloomberg. yvonne: serenading. [laughter]
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♪ yvonne: here the latest headlines. softbank will take $550 million of debt. the notes will be priced around $.85 on a dollar with a yield under 10%. 2.2 billion dollars from softbank after its ipo failed in 2019. it says it is a sign of confidence for the company that is unprofitable. other bonds declined on the news. citigroup is said to have consumer assets in several asian markets. the u.s. lender has picked leading buyers in thailand, indonesia, malaysia, and china, while sales of india and taiwan businesses may take longer. it has considered a sale of
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retail assets in asia as it focuses on unprofitable units like investment banking. david: let's look at markets. after a big move in treasury yields, we are coming up ever so slightly. we focus on 30 year yields. where do we break above 1.8%? that seems a key question for macro traders at this point, given the expectations. let's have a look at oil and the latest assets. we had the loonie in here. .5% to the upside so following a .5% jump in oil prices. we are coming off ever so slightly in the breakdown. since we talked about one sector group, asia books to support the day across 10 to 11 sector groups. every single one is up as we speak with the exception of consumer discretionary. property, health care, resources, risk on. rishaad: the omicron variant,
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the pfizer vaccine provides robots but not complete protection against it, this new strain. we will go into that and remind
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david: almost 10:30 in the morning in hong kong up in shanghai. 9:30 in new york. asia msci pacific. risk on mood following the move up from wall street. yvonne: the latest when it comes to the omicron variant. rishaad: it is not easy. yvonne: it is a very difficult -- one of the most --the hardest to pronounce. let's talk more about the update.
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pfizer saying their covid vaccine could be less effective against omicron than other variants. an early study from south africa indicates boosters may help. let's bring in rachel chang leading our coverage. water the data telling us -- what are the data telling us? >> i think it is the first lab study we have coming out -- the first of what will be many. the south african scientists have found the pfizer vaccine provides -- there is a reduction in levels of neutralizing antibodies compared to other variants. at the same time, the immune reaction. something important people are looking out for. it shows the current boosters will continue to provide protection. we don't have to throw everything out and start all over again. david: when we go by that headline, you talked about it.
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you said there is partial protection. is it protecting a part of the sample size, or is everyone getting partially protected? >> the protection is not as high as it was. so we don't have the exact number. it is less effective than it was against delta. the good news is it continues to have protection. they say that they saw in booster shots, the third shot that brings your immune reaction up, should be sufficient to prevent the illness from omicron. rishaad: rachel chang there, bloomberg's asia health care coverage. also getting some lines out of this trial taking place. the former malaysian prime minister.
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we will find out what is going on. maybe we will get a verdict. let's get you to some of the first word news headlines and have a look at evergrande. bondholders have not received coupon payments after the end of a month-long grace period. they see the default from the most indebted developer now looks inevitable. some $19 billion in dollar notes would face as they structure balancing without a government bailout. republicans and democrats agreed on a plan to raise the government debt ceiling, pulling the u.s. away from the brink of default. in enabled the procedural maneuver for the authority with only democrat votes. quickly reverberated in the treasury markets and bills in december. new zealand's finance minister saying the government will not resort to rein in debt. telling the parliamentary committee while debt levels have risen, they remain low compared
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to the rest of the world, saying increased borrowing was prudent and responsible during the pandemic. he expects a strong economic rebound next year. the uae is changing its weekend dates to saturday and sunday. for state employees and schools. it starts on the first of january. the working week will be foreign to have days. the uae says the move will allow more closely for global markets like the rest of the gulf, it currently has a sunday to thursday working week. u.s. national labor relation order rejected starbucks bids to count the unionization ballots from three of its upstate new york restaurants. it paves the way for a thursday vote count that could create the first labor foothold among the coffee chain's u.s. stores. kevin johnson sent an open letter to employees saying the company respects the process, regardless of its outcome. that is a look at our first word news headlines. david: speaking of vote, who we
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are learning the house has enough votes to allow a speedier process to raise the debt limit, and the process continuing. we are looking at thursday u.s. times, friday in the asia-pacific where the senate is set to vote on the debt limit procedure. coming out of mitch mcconnell in terms of the timetable moving forward. yvonne: pretty complicated. the house trying to get those votes in place. mcconnell saying the move to avoid a default is the best interest for the u.s. we will update the global supply chain. the top story today, support coming back online. it is making repairs after a historic rainfall in the region with work on rail lines underway. canada's biggest -- expected to
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take weeks through its backlog. janet yellen says reliance on foreign supply chains has proven a vulnerability. she said protection like policies might be needed, including producing more critical goods domestically. ahead of the u.s. biggest board says they are likely to last at least until the end of next year. the port of l.a. executive director also warned of the potential impact of the spread of the omicron variant. >> we have become more in depth, pivoting, but we are watching this closely. if our work first get sailed, it impacts the supply chain. we have seen cases like that. we have to make sure folks are vaccinated, they have to physically distance, and we do the great contact tracing so we don't spread the new variant quickly. yvonne: bloomberg terminal users can read more about those stories in our newsletter supply chain. yvonne: given --
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david: given the supply chain issues hanging over the holiday season, the last thing amazon actually needed was this a major outage in its web services division. that has happened as we do the weight of the world, causing chaos for deliveries before the problem was resolved. let's get to su keenan to walk us through what happened and why. >> it was chaos for a good couple of hours. for amazon, it has now been resolved. the network device was resolved according to amazon. working for the recovery of impaired services. it is because perhaps we saw the stock up after hours. we saw the way the stock performed in the regular session. no sign of any problem. it was up 3.5% at the height of the day. riding the wave of the rally we saw. and that we are also -- other
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companies were impacted. their stocks were not impacted. we are talking about multiple websites, including those run by disney, streaming services. netflix said at one point traffic was down because of the problem. coinbase and robinhood were also directly impacted. it was early in the day on these coast around 10:00 a.m. that the cloud unit had a massive outage. it affected communications amazon had between its pickup facility and drivers. a lot of packages were sidelined and drivers left without routes. there were 10,000 complaints a day, another 11,000 for the computing arm. and many other companies were impacted. amazon said it mitigated the underlying issues, but the ripple effect was clear. as many as millions were
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impacted by streaming slow down and buying airline traffic tickets and other issues. so it looks like the company dodged a bullet, in terms of stocks being impacted, but it is a red flag. rishaad: listen to that ripple effect, not the first time aws has had a notable outage. >> no, this time last year, there was a big outage that affected the washington post, for instance, also owned by amazon. important to point out aws, amazon web services, is the leading cloud computing provider. the leading power and software to many companies, which don't need to have their own data centers. microsoft is a close second in providing services in this area. has a much smaller piece of the pie. it is important to point out there was no hacking incident. many networking experts say it is the kind of outage you want when you run a very large
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system. amazon services section has music and video streaming, voice activated alexa, the ring doorbell also impacted. disney said many of its customers were able to get into its amusement parks, for instance, they had trouble buying many items. so a lot of complexities in those cloud computing services offered has been revealed in this most recent incident, because it shows how so many companies are connected. back to you. rishaad: just having a look at this. it does concern the former prime minister. this is an upholding of its guilty verdict. it is on appeal. it is linked to the scandal revolving 1mdb. this was also on the back of najib having his p p -- plea
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to have further evidence in the court denied, saying he was further complicit, in essence, that he knew the funds would enter into his account, and he needed the source of the money, and he used it for personal benefit. najib used his position in power as prime minister for personal gratification. that's coming through at the moment. and on this count, at least found guilty. other cases against the former prime minister. yvonne: let's look more on what has been going on in congress. our latest is that the house has the votes to pass this bill to allow for a speedy process to raise the debt limit. this was kicked down the lines at this time of year, and now they say they are able to avoid and break the partisan impact and raise the debt ceiling. we heard that earlier on, but it seems they have the votes now.
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the house also passing the bill to allow for a speedier process as we speak. also when it comes to the defense policy bill, they had votes to pass it. that vote is now ongoing. david: futures moving up. i'm looking at malaysia. ever so slightly higher. i'm not sure if we can go to the verdict. in terms of market reaction. we will speak with plan international about how the impact -- pandemic has impacted the rights of girls and women in asia. joining us in a few moments. that is just ahead. this is bloomberg.
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david: some breaking news. it did take a while, not surprising, but we are here in terms of level. we have reached the year high on the chinese currency. now six dollar onshore. dollar cny to the lowest since 2018. a little bit more and the tick beyond that point in the first half of 2018. really a strength, a story about yuan direction. rishaad: let's have a look at the share of global wealth,
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which is held by billionaires. surging to record highs during the pandemic. the global inequality the -- lab saying 2750 billionaires control 3.5% of the wealth, up from 1% in 1995. the debate about how the pandemic has worsened inequality, particularly developing economies shy of vaccines, and natural resources, as well. yvonne: they were to improve the lives of children in asia and the pacific region. our next guest talking about the efforts to help thousands of poor communities to fight child poverty and help children realize their full potential. she is the executive director for asia-pacific and gender transformative policy and practice. thank you for joining us on such an important topic. we talk about how covid has impacted women as a gender, you are focused on young girls and
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young women. what impact have you seen? >> we are all aware covid has affected a lot of people globally. according to our experience, it has affected growth the most. we see across the asia-pacific region girls were out of school today. increased violence against girls. we are seeing -- families going down because of it. used as a coping strategy for families. i would like to say we can take this growth agent. we know there are social norms preventing that decision-maker.
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and that is what it was. david: are these -- i was wondering if you could elaborate -- what policies can be put in place? some might be addressed by policies, some maybe not. >> it does -- is working on it closely. it is far too dark and for the -- plan. they are making -- but unless we invest more, unless there are laws implemented, these problems will get worse. we have seen most of the girls as countries went into lockdown, they helped to be out of school.
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and we know how much organizations can get the most matches and growth. to get them back, it is going to be an effort. looking at that from access, quality health services, how do we clear access to information to young people? asia in particular has a large rural population. that is critical. so i think those are some critical areas when it comes to growth. rishaad: why has this exasperated a lot of women and girls in particular? is it fair to say that it has
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laid bare some of the societal and cultural norms that have benefited the societies, which is a much harder nut to crack? >> yes. for gender -- programming. it is prevailing social norms. and when it comes to schooling. particularly when families have less income and challenges. i was talking to a girl in a community in india during the pandemic aware schools were shut down. it was digital -- but they also need to look if it really works for girls. if a family were to have one more that would be shared, and
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when i was talking to the girls, they said she never gets a chance, because the boys get the first using the mobile phone. and what gender quality will there be -- so that is something which -- when it comes to digital and -- [indiscernible] whether it is education, health care, but they have a decision. yvonne: the u.n. did say when it comes to covid, it threatens four lost decades for gender equality. if we don't see any policy action, more investment on this effort, what worries you the most? what can be a serious setback for this region? >> a setback i see, if action is
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not taken we will further go down. well we -- report and good leadership. we have done it across 32 countries. we have seen out of 19 countries, 14 countries have shown a boom. not looking to see that -- and yes. yvonne: thank you so much for your time. plan international talking to the impact about girls. plenty more ahead. this isb. -- this is bloomberg. ♪
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yvonne: a quick check of the latest business flash headlines. volkswagen shares jumped on reports the family that controls a company may sell part of its stake. according to a german financial newspaper, they may want to raise funds to invest in a possible separate listing of vw's brand. the family would remain their
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largest shareholder, with a 20% stake. apple shares rallied after morgan stanley boosted its price target to $200. it closed at an all-time high, with gains putting it close to an historic $3 trillion market value. katie huberty, who raised apple overweight, sees the company benefiting from new vr and economist vehicle products. david: in case you missed it, the chinese currency is -- just surpassed its peak. not a new 2018 high against the u.s. dollar. where are we on dollar china? not pushing towards that level. i forget who it was, but i think it was our guest a couple of weeks ago, jonathan cavanaugh. if you are long em, this shows from 10 years back. it is close to correlation with the chinese currency. might list all of the votes --
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most if not all. rishaad: if we see china easing further, and a u.s. fed that is more hawkish, spreads should widen. it should mean money in the other direction, meaning a weaker yuan. that is the theory. yvonne: then you have the full capital account. then maintaining this covid zero strategy. people are not going out and traveling as much. basically, you will see those inflows into stocks and bonds. rishaad: in theory. david: when where the trade numbers -- yvonne: they were out yesterday. rishaad: blown out imports. david: demand for currency. that is really tied into the strength. perhaps also where we see more risk on. maybe even sentiments playing in that policy. rishaad: that number for the invoice boosted by commodities. and commodities priced in dollars. there we go. let's have a look at what is
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going on with the markets asx. up 1%. we've got nikkei closing out its morning session. shrugging off what we had in terms of the deep and unexpected contractions in gdp. this is bloomberg. ♪
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yvonne: it is almost 11:00 a.m. in hong kong and singapore. i'm yvonne man. rishaad: i'm rishaad salamat. risk appetite. asian equities. u.s. run higher. the omicron variant better not derail the global economy. yvonne: evergrande's default lines. heading for an apparent restructure having yet to take coupons. rishaad: reserve bank of india
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expected to remain in his dovish tilt over the omicron variant. we preview today's policy decision. yvonne: the risk rally here right now. what we saw in the u.s. has come roaring back. s&p 500 seeing the biggest gains since march. when it comes to the gains, basically he raced all of the losses since the powell testimony when the retired the word transitory. people are not really worried about it at this point. the faster taper, as well. also when it comes to the omicron variant. seems those fears are fading. you see a decent session in asia on this wednesday. asx 300 up 1%. kospi seeing similar moves. we did see the dollar down a bit. renminbi moves in a minute. yields are slightly off of the high we saw during the overnight session. the 146.14 for the u.s. 10 year
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yield. back to 150 or so. commodities, as well. riding this wave on the back of the rrr cut when it comes to oil markets and iron ore. slightly off when it comes to brent and wti. we did hit a big way in the last session or so. i'm dollar loonie as well as 126. one of the beneficiaries. evergrande shares down from 1%. they did not meet the debt repayments. the fact they are saying they're heading to a debt restructuring, or the pboc says that, it is an indication that it is not too big to fail, and they have did defaulted. also the damien pretty disappointing. we have talked about a lot of moves in the currencies. renminbi, in particular. rishaad: the last time we saw the renminbi at this level was
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may 2018. let's take a look at where we are. not there at the moment. looking at the bank, .6% move up. solid gains. the biggest advance of the bart in four weeks. definitely trading on india, as well. the imported interest rate decision. what does the reserve bank actually do? the big story at the moment, looking into the yuan. may 2018 is the last time we saw this. the onshore yuan is asia's best performing currency. perhaps we do have those trade numbers faster than expected. exports and imports. let's get the view of mark cranfield. yousef: -- yvonne: will of the rally continue to hit more highs? >> the central bank and china
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are watching this closely. it is something that has not been there since 2018. probably the kind of number that will ring a few alarm bells in the pboc head office. i would not be surprised if we don't see a pushback from the pboc during today's trading. their favorite time is usually close to the finish of onshore trading late in the afternoon. if they do anything about it, we might see it later in the day. it is certainly a move they probably don't really want. the yuan is already strong on its basket, and they don't need it trading against the u.s. dollar. but the trade data still supports substantial inflows into china. chinese companies are earning such large amounts of foreign currency, they will continue to convert back into yuan. certainly there is a flow pressure from that point of view. it can be getting uncomfortable
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for the central bank around these levels. maybe part of the optimism is there seems to be some confidence from the government that evergrande can be contained, there will not be a huge fallout. if you look towards 2022, probably on a relative value bases, chinese equities will look good compared to other parts of the world, particularly the u.s. and europe. so there might be some people repositioning for what happens next year, looking for a rebound in chinese equities. i doubt we have heard the last from the pboc. i imagine we will see action today or tomorrow. rishaad: let's get to the question of the day. first year equities. is the year end stock rally up given what we saw? is it the santa rally you were referring to? >> it was an impressive rebound. but the volumes were not great
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at all, really. if you are a long-term bull on the u.s. equity market, you would have loved to have seen more participation in the rally. particularly the rally of nasdaq. it is not that impressive on a suboptimal volleying day. so it will take a wild to convince the big bowls it is a huge turnaround in the u.s. market. they will need more than that. bloomberg has a very good story today running some of the big tech companies, some of the insiders, the people on the board are selling more of their own shares. that is not usually a great sign for the market in the immediate term. so that has some people worried if the company owners are selling themselves, what does it mean for the outlook of shares? even though it was a good rally, there were a few reasons why this might not continue for much longer. rishaad: good stuff. mark cranfield there.
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turning to geopolitics. it seems there was more heat in this call between washington and moscow. let's get the first word news with vonnie quin. vonnie: president biden warning letter mapleton the u.s. and its allies would take a strong economic measures to respond to any attack on ukraine. during a two hour video call, biden also said the u.s. would provide additional materials to ukraine if it was attacked. the government issued a statement blaming nato for rising tensions, calling for guarantees the alliance will not station near russia. the experimental effectiveness of pfizer's covid vaccine against the omicron variant has found it provides some protection. south african researchers say omicron's ability to evade the shot and immunity is robust, but not complete. the research head of the africa health institute says a booster shot can provide additional protection. china says the u.s. will pay a
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price for its diplomatic break out of the winter olympics, warning ties between the two largest economies may suffer. china's foreign ministry says the olympics are not a stage for political stances nor manipulation. it said the u.s. is standing opposed to athletes and sports lovers across the world. the white house cited china's alleged human rights abuses for the boycott. australia says it will not send government officials or politicians to the beijing winter olympics. prime minister scott morrison said athletes will still compete. the u.s. announcing the diplomatic break out of the games. new zealand said it will not send government ministers because of covid-19. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin. this is bloomberg. [indiscernible] e 2 exclusive -- yvonne: exclusive interviews.
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esg and his views on sustainable businesses. rishaad: and up next, telecom indonesia's ceo discussing the recent ipo of the company's infrastructure services unit and the outlook for industry. this is bloomberg. ♪
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yvonne: the took composite rose marginally higher. the unit of state owned telecom in indonesia raised $1.3 billion in the country's second-largest ipo. they helped the ipo market chart a fresh record for the companies planning to use the funds to buy telecom towers and venture into 5g infrastructure. rishaad: ririek adriansyah joins
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us from the capital of jakarta. thank you for joining us. give us a sense of how the business is faring. >> we -- our business sector. we believe digital is going to be a central part of it. and we believe retail will provide indonesia -- the opportunity to have at some point be very close to the developed countries. and we will be developing the activity, the mobile footprint. the second is the platform. the expansive the productivity.
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and the -- services. i think that is our plan. on top of that, we are trying to unlock some of our portfolio. yvonne: can you tell us more about those plans? i know there are plans to ipo your data center unit. what other things are you looking at to unlock that value? >> we started with the ipo that we should have completed and the second of november. two or three weeks ago. the reason why we do -- [indiscernible] so home we did that.
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$1.3 billion raised. i think it is a useful opportunity for the market for a couple of reasons. one, in this country, the industry is growing, because of the mobile, expanding their coverage. and if you take a look at -- indonesia, they intend to of -- so global, it is much lower, between 20% -- 20 times and 25 times. because of -- 75 of revenue coming from the three biggest operators in the country. so the revenue is good. continuing the consolidation.
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so -- less likely to --. rishaad: give me a sense how 5g is transformative for the country, and the investment and return. >> a couple of reasons -- one is it is not determined yet. the second reason is the other countries -- but the number of people who uses a it is very low. but we plan for it massively --
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getting ready. [indiscernible] funding and other countries. yvonne: when it comes to mitratel,0 it was000 disappointing -- it was a disappointing performance, giving you were below the ipo price. what will you do to turn things around? >> it is still slightly below the ipo price. but the investors are very strong. we do a couple of things. one is expanding a new -- we may also acquire some of it
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from the -- [indiscernible] it is getting better -- in line with the industry. a couple of things we are putting in the report. also deploying some other -- like the fiber-optic of the dollar business. those are a couple of things we plan on doing with it in the next months. rishaad: thank you so much for joining us. ririek adriansyah, telecom indonesia chief executive. yvonne: restructuring looms. evergrande looks to begin overhauling its process. that is next. this is bloomberg. ♪
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rishaad: property there under a bit of pressure. the china evergrande story is heavily indebted developer appealed to default. bond dollar denominated. telling bloomberg they have not yet received overdue payments after a 30 day grace period. it could be a long and painful debt restructuring. yvonne: perhaps their biggest ever. let's bring in stephen engle, joining us. this looks inevitable, this default. >> it looks inevitable. and we have someone saying they missed their payments, after the third day period monday, and
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they started the restructuring works last friday. so essentially, they had defaulted. maybe not officially declared by the ratings agencies or creditors, but they are in default. they have not paid those, according to the bondholders we have spoken to. they did not receive the coupons on the interest due monday. where do we go from here? it is about finding what assets can be sold, how much discount they will be sold to, and who will get the biggest haircut along the creditors. rishaad: who is bottom of the pile? >> if you look at the 30 day grace period, how they are often times applied to the dollar bondholders. the last two times, the 11th hour, evergrande has been able to pay. by most accounts, they have not been able to come in and make those payments. maybe the dollar bondholders -- it is speculation right now.
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the question now is now that you have the big restructuring debt, it will take a bit of time. can the government, and is the government able to contain the systemic risk? we have had more than 10 developers already default. it can be more. more news today that we will talk about in a second. yvonne: do we know more details why the trading was suspended? are we on the verge of default? >> very well could be for kaisa. they first -- the first property developer in 2015 to default. they could be going down the road again. this is the second time in a little over a month they requested shares to be halted. they missed it by most accounts. payment of $400 million maturity dollar bond. we don't know the covenants in the bond.
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but the is due. and there is confusion. they have halted the shares right now. and again, another indebted developer that "no guarantee it will be able to meet certain commitments due to liquidity issues." the exact same wording evergrande used the next day when they announced restructuring. yousef: could beginning some more. thank you. stephen engle on the latest. a quick check of the latest business flash headlines. nestle selling part of its stake in morreale back to the cosmetics maker. the companies had been in a partnership since 1974. a protective move to shield l'oreal from possible french nationalization. following the sale of 22 point million shares, nestle will own 20% of l'oreal, down 23% at the
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end of last year. nestle retains its positions. softbank set to be looking to offload $550 million of debt it provided to we work by selling bonds. it will be priced around $.85 on the dollar. the yield just under 10%. receiving 2.2 billion from softbank after its ipo sales in 2019. they say the bond sale is a sign of confidence in the office sharing company, which is not profitable. the other bond declined on the news. citigroup is said to have chosen preferred bidders for its consumer assets in several asian markets. the u.s. lender has picked leaning buyers in thailand, indonesia, malaysia, and china serving those businesses and may take longer to materialize. rishaad: -- president saying he was forced to delist and chinese authorities remains several years away. he spoke to us about the future of chinese tech companies trading in new york, and how his
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ev company will compete with tesla. >> will be in a position in that category. and we believe in the china markets, it will be the best product also catered to chinese consumer demand and user features, autonomous driving and charging capabilities. i think it will be a strong product to the consumer market. and i think we have a plan to unveil that product in europe. but i think this design, coupled with wealth will be a powerful package to compete with. >> we have been closely following the delisting from the u.s. we have seen a slump in other chinese tech stocks. how is it impacting them, and
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could it lead to a delisting? >> we have been closely watching this process with china adrs and the counting issue. i would say it is still ongoing. the timetable means several years before a final decision will be made. so there is still time for the governments to hopefully work out something. but we are chile already completed a dual primary listing in hong kong, meaning it could list in hong kong if it should happen. so we actually have the preparation to prepare for any eventuality. but i think this is something we are still following closely. there is no 7 -- definitive decision until probably a few years later. >> given the additional scrutiny, how confident are you that you will move forward and
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continue moving forward in your plans to expand in europe? >> i think we have always thought international strategy as the core strategic decision and direction for us. expanding in europe is naturally because it is one of the most mature and attractive ev markets. i think china's product so far, smartphones or others, have been welcomed in the european markets. we are confident with our leading technology and beautiful design. we are able to attract the consumer. the chinese government, they are supporting chinese companies to go abroad and go global. so we are confident to get the right support from china and the consumers. >> that was brian gu speaking with emily chang. looking at chinese markets into the lunch break.
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risk on. risk appetite coming in a big way for markets after we saw the u.s. tension. we have reached the year to date highs for the renminbi. near the highest. this is bloomberg. ♪ 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.
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>> 11:29 a.m. in hong kong and singapore. i'm vonnie quin with the first word headlines. a malaysian appeals court upheld the guilty verdict against the former prime minister. the first in a series of trials linked to 1mdb. he failed to have overturned his prison sentence on seven charges, with a judge calling his actions a national embarrassment. he immediately applied to stay out of jail while he appeals to the highest court. some china-evergrande
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bondholders have not received overdue coupon payments after the end of a month-long grace period. the defaults from the world's most indebted developer now looks inevitable. $19.2 billion in evergrande dollar notes would face deep cuts as the company restructures its balance sheet without a government bailout. republicans and democrats agreed on a plan to raise the government debt ceiling, pulling the u.s. away from the brink of the false. it enables a procedural maneuver to -- with only democratic votes. the news quickly reverberated in the treasury's markets, with a rally in bills maturing in december. new zealand's finance minister says they will not resort to rein in debt. they told a parliamentary committee while debt levels have risen, they remain low compared to the rest of the world. borrowing is prudent during the pandemic, and he expects a strong economic rebound in 2022. global news, 24 hours a day, on air and at quicktake by
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bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin. this is bloomberg. yvonne: take a look at the price action when it comes to dollar action. renminbi strength keeps going from high to high. we have basically reached the june high we saw. 63534 for the onshore rate. back to levels we saw in may of 2018. a lot of reasons why you can see the strength moving. the currency is heading higher. we were talking to mark cranfield, at what point would be uncomfortable for the pboc? rishaad: let's have a look at what else is going on. if you have a look at it against , have a look at the majors, certainly it is not lost ground against any of the majors. the best performer amongst the measures is the japanese dollar.
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it is not that the inflows of government debt -- that is going strongly. on the reverses, and this is counterintuitive, we had a triple are cut. on top of that, we had the huge import. 31% increase. that includes a lot of dollar buying. you have to buy commodities and they are denominated in the u.s. currency. a lot of moving parts. speculative inflows into the bond market. what is going on here is that they do go strong. amongst the majors, the swedish krona had the worst performer. yvonne: you had the fed and pboc heading different directions. the outlook for the currency is still uncertain. consensus is still 650 for next year. so perhaps this rally could be slowing down next year, but not quite yet as we are down to the end of 2021.
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rishaad: it may depend on what we talk about next. yvonne: when it comes to omicron. for the latest on it, a south african study found pfizer's vaccine does provide some protection to the omicron variant, but less than a dozen other variants. research indicated a third booster shot is probably needed. rishaad: a covid-19 vaccine from canada's -- demonstrating 71% efficacy against multiple variants, including delta. omicron was not circulating at the time of that trial. a study showing the antibody treatment is effective against this new very. yvonne: by about 2%. i'd we did speak with -- from the johns hopkins center for health security about the latest variant and vaccine mandate. >> it would be great if it tilts toward being a cold. i don't think we can say it with certainty. there is a possibility it might be the case based on the early
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series coming from south africa that we are not seeing as many people hospitalized, not many people needing icu beds, and a lot of people getting picked up when they were in the hospital for other reasons. but we need more data to say it with certainty. we also need to see what happens when we extrapolate south africa's experience to countries that are older, like the u.s. they also have more vaccinations. it would be great. we are cautiously optimistic. it is interesting, because it seems to be converging on this consensus. we are not seeing outliers of severe disease yet. hopefully this is kind of the step the virus takes to become something we deal with more frequently on an annual basis and has the ability to get around our community, but not make us too sick. >> what is your weighting to the calendar? that there are waves to the autumn and in winter, whether it
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is the cold, the flu, what is the weight of seasonality versus our other fears? >> coronaviruses will end up becoming seasonal, because others do. this one just takes time to get to seasonality because there is not enough immunity in the population. we will see intensification when it gets colder, people move indoors, and spread of the virus is more efficient. it will take time to see the complete start. we do see some seasonality, but transmission is going on because there is too many people that were not immune. >> given what we know about omicron and what it can do getting around certainty musicians -- certain immunizations, what does it mean to be fully vaccinated? does it mean booster shots, as well? >> vaccines are not all or nothing, it is not an on and off switch. there is a spectrum of protection they provide. even if omicron gets around some of the immunity, it is not able
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to get around what matters, protection against serious disease, hospitalization, and death. the threshold to me has always been preventing serious illness, hospitalization, and death. i think boosters belong to people above the age of 65, high-risk conditions, but the healthy population, it is unclear whether they are needed or not, even though the cdc updated recommendations. there may be a need to make it omicron specific. that is different. the first generation boosters, in a healthy population, you are pushing off of a breakthrough infection in the future. you are not getting a great amount of protection, in terms of what it gives you. if you have a high-risk condition, then yes. clear benefits. >> i would love you to weigh in on the mandate in new york city that all private sector employees get vaccinated. is this the course of travel you expect around the country and around the world? >> it is going to be certain
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cities to try and do this. new york city already has one of the highest vaccination rates in the country. it would be great if it were going on in parts of the south where the vaccination rates are low. if some states are not already highly vaccinated, they will become more boosted and more vaccinated while the rest of the country languishes at the lower rate of vaccination. so i think we are still on that two track pandemic. but because the mandate got tied up in court, you will see local municipalities and states trying the same thing. rishaad: johns hopkins center for health security scholar amesh adalja. the johns hopkins bloomberg school of public health is supported by michael r. bloomberg, and of course, bloomberg television. yvonne: we are learning details on why kaisa may have suspended their trading today. according to people we have been talking to, two holders of kasias bond do yesterday said
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they have not received payments as of 9:00 p.m. new york on tuesday. so according to our sources. they have yet to receive the $400 million payment that was supposed to be due on tuesday. so once again, we see more signs of possibly the dword emerging when it comes to the property sector. rishaad: to win approval for the dead, couldn't have extended the debt payment deadline. coming up, one of the biggest property developers planning to go global. we talk expansion plans. and the outlook for the indian property market with manoj mend a. this is bloomberg.
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yvonne: looking ahead to key stories investors are watching out of india. reserve bank of india very much in focus. the rate decision due in less than an hour's time. most expect the central bank to hold on this key rate at 4%. reliance industries has agreed to build a 2 billion-dollar dollar petrochemical plant in the uae, the first of its kind for reliance in the middle east. india's protesting farmers to withdraw all legal cases against them tied to the protest.
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the government offered to remove the cases of the end of the movement, but farmers say it is not good enough. rishaad: that decision is about 50 minutes away. let's get to the india economy report and look at the are b.i.. what are they really factoring in? we don't expect a move, but maybe we get an indication of when? >> exactly. in today's policies, we are not expecting anything major. the key lending rates will remain. markets pricing, and the hike -- the responsibility for policy normalization. and we expect the monetary policy for that ninth straight meeting. most are expecting it.
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so increasing could come in this meeting if the new risk of the omicron virus were not there. yvonne: are we seeing a change when it comes to the outlook on growth and inflation? >> definitely a topic of interest. particularly after the fed results, it is fine to retire the word transitory. could also be using the word for inflation transitory more than one. but inflation is on the rise in india. and also, the favorable base effects. they see a forecast of 5.3% in the current fiscal. also likely to retain the growth production.
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down by arista growth as well as inflation moving forward. rishaad: thank you so much for that. yvonne: turning to our focus on one of india's largest private real estate developers. it's plan to spend internationally, focusing on key gateway markets. the company also aims to diversify into new asset, such as industrials and logistics. joining us is manoj menda. thank you for joining us. in terms of the expansion plans outside of india, flesh it out more on what the plans are and how much investment you are looking to make. >> thank you. we have played a very dominant role in real estate with a clear focus on commercial real estate. they have done it with 250
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global clients. our objective is to find workplace solutions for our clients globally. it manifests our growth into international markets. we have decided to venture into london and paris in phase one. as we evolve into those markets, we will look at other cities such as dubai and new york. the idea is to find workplace solutions. >> you've got enough to be on your plate in india itself. >> absolutely. india is a very promising market. we have close to about 15 million square feet of new builds every year, probably one of the largest markets globally. real estate in india accounts for about 30% of gdp. globally, real estate accounts for about 10% of gdp. it is a very promising market,
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we have not shied away from the india market. we have a very aggressive hyper growth strategy plan for india as we have executed over the last 20 years. our ability and strengths lie in asset transformation and making bold moves. we want to leverage on that both in india and international gateway cities. rishaad: india being your market that you know well, and you want to be one of the top people, in terms of the fact you have leads in energy and environment design, it is badly needed in india. how much is sustainability really playing a part in the development you are undertaking? >> i can't agree with you that sustainability is a buzzword today. it is imperative our portfolios are sustainable.
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we have to work in a partnership ecosystem in order to reduce the carbon emissions and create a net zero portfolio. i think we have taken that lead forward in many ways. our first zero building should be in operation by early next year. i think our pledge is to ensure we moved to a complete net zero portfolio across our entire assets. yvonne: in terms of looking abroad. i'm wondering how you will take on the global competition? what are you looking at? >> over the years, we have worked on some very strong relationships while we were developing in india. we have partnered with some of the best sovereign wealth funds in india. very high quality returns. and we want to use the same
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relationships we have with the likes of canadians planned pension board to our existing partners prayed we want to leverage the relationships and possibly extend that relationship to other gateway markets, as we had discussed. our idea is a codevelopment strategy. we have used our propriety capital and the partners of our partners investing in the high-quality, high-grade real estate. yvonne: in terms of the indian business, are you considering listing your office assets under their reach? >> we have always enjoyed having a privately held portfolio. we are a multi-generation family that believes in building institutions in real estate, and our idea is to remain private. and we have a private reach that is owned by the family trust. the company was founded by my brother and myself.
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we would continue to ensure we stay private, have our own private treat enjoyed by -- ensuring the next generation is well-trained and exposed to take on that role of building a family institution. rishaad: we've got a rate decision from the reserve bank just over 40 minutes from now. i'm sure you want them to keep rates on hold. it has probably been responsible for the demand you have witnessed. it allows you to borrow cheaper. what will be your message to the government? >> i think as far as real estate is concerned, it is one of the largest contributors to the gdp in india, as well as globally. if we are able to ensure there is ample liquidity available, and continues to be in india, i think we will address a lot of the issues we face in indi with regard to the housing
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shortage. as well as making sure india continues to remain a tech capital, and creates a space to attract talent to come into india and set up their operations. so i think with the policies the government is laying out for us, it will only fuel realistic for us and the industry at large. rishaad: great to have you on the program. please join us again. that is manoj menda joining us exclusively. we had the market open in mumbai. moving to the upside at the moment. a lot of traders here will be waiting for the reserve bank of india rate decision. looking at perhaps no change with a possible hint of when a hike can come, standing at 4% at the moment. bond markets seeing the 10 year yields rise about three basis points, 6.39% in the session. a huge day. good gains, the nifty bank index
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up over 1%. yvonne: president biden tells vladimir putin to expect a strong response to any attack on ukraine. more on the virtual meeting. this is bloomberg. ♪
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>> president biden was direct and straightforward to president putin.
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he reiterated american support for ukraine sovereignty and territorial integrity. he told president putin if russia further invaded ukraine, our allies would respond with strong economic measures. we would provide additional defense to the ukrainians above and beyond that which we are already providing. yvonne: the u.s. national security advisor with the main points to come out of the video call between president biden and putin. rishaad: liz einhorn is with us. it is a tough one, ultimately. a standoff going on. it seems they are not really understanding each other's positions. >> the u.s. is expecting russia is preparing to invade sometime early in the new year. so president biden emphasized some of the things the u.s. would do.
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the u.s. is not going to come to ukraine's defense militarily. the u.s. would provide more military assistance to ukraine, and president biden emphasized the u.s. would impose crippling sanctions financially on russia. yvonne: do you think they were enough to deter him from invading? >> no one knows what he is thinking. that is the big question. his demands are that the u.s. and its nato allies need to stop nato expansion. the russians don't want nato expanding closer to russia. that means the ukraine is off limits. it doesn't seem like the thing -- the u.s. would not explicitly agree to it, but it seems like the type of thing the u.s. is in no rush to include the ukraine in nato. rishaad: we had the meandering 5000 words long essay
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highlighting the historic ties the ukraine has with russia. on top of that, you don't have nato allies right next to russia itself, with the exception of the -- data. >> that is certainly something the two sides both understand. is it enough? we have already seen russia has invaded ukraine several times. there have been consequences for russia, but russia still controls crimea. the way vladimir putin is thinking, if there are consequences financially, that's the thing they might be willing to put up with. yvonne: and the germans can help when it comes to nordstrom. >> something administration officials had said they expect if there were any further
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russian military action in the ukraine, that it can lead germany to call in the nord stream 2 pipeline. it goes both ways. germany goes down a lot if they don't proceed with that. otherwise, it will be something to punish russia. that is one bit of leverage. -- might be there alternative. yvonne: thank you with the update. let's take a look at the markets and what has been going on. the rich rally seems to continue, even into the india session. the top rate stocks in focus. evergrande seen extending those losses. around 1.5% lower. the latest on the verge of defaults. a disappointing debut on their first day at hong kong. we look at the renminbi movement, as well. reaching the strength we saw this year back in june. now inching closer and near the 2018 highs. 63540 eight. at what point will we see intervention?
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rishaad: that is the thing. just going one direction prayed off to the hong kong lunch break. the hang seng below the game line by .10%. "bloomberg daybreak: middle east" is next. ♪
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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. >> from the heart of where
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innovation, money and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i am emily chang in san francisco. intel revved up plans to speed up its self driving car business. they could generate billions for the lagging chipmaker. is there a catch? we will discuss.


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