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tv   Bloomberg Daybreak Australia  Bloomberg  October 12, 2022 6:00pm-7:00pm EDT

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haidi: good morning and welcome to daybreak australian. annabelle: we are counting down to asia's major market opens. shery: and good evening from new york. the top stories this hour, u.s. stocks fall and treasuries gain as investors brace for september inflation data. the s&p 500 hitting a fresh low for the year. haidi: minutes of the last fed meeting show them committed to restrictive policies. shery: opec slashes outlook for global oil demand making the case for its contentious supply cut. u.s. futures higher by about .25
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percent after the the s&p 500 fell for the sixth consecutive session. there was a lot of volatility after we got the fed minutes, potentially suggesting a recalibration when it comes to the pace of rate hikes. at the same time we are focused on u.s. inflation numbers on thursday. the 10 year yield fell below the 390 level already. this of course after we saw that volatility rise in the treasury space and gains across the curve. we had wti following for the second consecutive session. we continue to see the pressure in the 80's and session specially after we got ppi numbers in the u.s. that came in higher than expected. really leading to concerns that the fed might have to continue in its very aggressive tightening path. take a look at this chart on the bloomberg because it shows how the ppi numbers rose for the first time in three months. we are talking about a bigger than expected gain. if you see this chart you can see that for the past four
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months or so we have seen cpi outpace ppi numbers. not surprising that investors are bracing for those inflation numbers on thursday. annabelle: yes, certainly that is the case. and the ppi numbers also weighing on currencies, particularly the yen, because we saw it falling once the data set came out and reinforced that fresh low against the dollar given what we have heard from governor kuroda. sticking with the need for easy policy settings in japan, and certainly highlighting the ongoing diversions we have with the u.s. the fed really enforcing the need to keep with that tightening, even if the so-called brain are line got a bit of airtime. also weighing on the -- in terms of the set up today for the asian equities, we have a bit of a mixed start. asx 200 futures last close in the red.
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new zealand flat today. taking a look at the scorecard for markets globally, you can see this. it is not a great picture for asia given that six of the 10 worst-performing markets in the world are in this region. this week alone korea and taiwan particularly hard hit. it's down to the tensions we see between the u.s. and china and that is why you see the hang seng, not much that can change. given we continue to see strengthen the dollar. that is also weighing on the markets down to what we are hearing from the fed. shery: and that strength really to do with the widening. we are looking at fed minutes from the september gathering. officials are pretty much committed to continuing to increase rates but at the same time, some officials said it would be important to calibrate hikes to mitigate risks. what is interesting is it seems the take away is still the cost
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of too little action still outweighs the cost of too much action. so the expectation right now is for another 75 basis point hike this time around at the november meeting. but bloomberg economics now saying perhaps the december fomc meeting could be at play depending on the inflation numbers you see on the board coming out thursday. haidi: too little action, too much action seems to be driving the u.k. gilt market as well. have you got motion sickness from this volatility? i am feeling queasy given how the ones they session started. longer maturity debt really starting off in the red and we saw losses picking up in the afternoon. the 30 year yield with about 5% at one point. then we saw that reversal a few hours later because we see bonds making that dramatic comeback. the boe snapping up 4.6 billion pounds worth. we continue to see huge
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volatility which has been playing out since we saw that package of unfunded tax cuts being reviewed. we will know more going into the end of the month but until things that until that it is set up for u.k. asset volatility continuing. shery: for more let's bring in kathleen hays in washington, and emily griffey out here in new york. we got more caution coming from these fed minutes but at the same time neon cash gary talking about the bar being set pretty high for a potential fed pivot. kathleen: seems like what we are seeing now is the fact the fed has done 300 basis point rate hikes since march. that is a very rapid move. they never said they would keep doing 75 basis point hikes and before they did jumbo sized hikes they thought by the end of the year it would be down to 25. loretta mester said we have to get up to what she considers the terminal rate.
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true they confirmed the inflation fight. a couple key phrases. they are looking down the road. particularly in the highly uncertain global economic environment, look at what is going on in the u.k., it would be important to calibrate further tightening with significant adverse effects on the economic outlook. if you look at the minutes, these are quite half-and-half. they made it clear, they are going to maintain the restrictive class -- stance. the risk as they go forward will become more two-sided. lael brainard, vice chair of the fed, said recently that the fed needs to start looking at more data dependent moves.
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as they look at the tightness being talked about in markets. neel kashkari, he said there is a very high bar for a pivot, for me, he said. the bar is very high because we have not yet seen much evidence that the underlying inflation, services inflation, wage inflation, labor market, that that is yet softening. that is the message from the last jobs report. neel kashkari, who used to be a major dove, is now a major hawk. he is showing why they are looking at what they have to do, when they are going to calibrate, maybe thinking they should do it soon. but you still have to get inflation coming down and you have to have it coming down sustainably. conclusion, maybe they will move gradually towards smaller rate hikes but the end in sight isn't from here. haidi: it feels like the markets overnight are less focusing --
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focusing on the calibrate statement and more looking through the cpi print. even though it has to show something really dramatic to move the needle. emily: we have pretty interesting reaction to the minute stocks. they initially rallied and then they fell off but treasury yields not move, the dollar could not move at all. my sources tell me that is because the minutes were hawkish and they expected it, but also the market is in wait-and-see mode before the cpi meeting. if you look at the volume for the s&p 500 for today it was fairly light. i was also looking at the point difference between the intraday low and the intraday high on the s&p 500. today it was only 34 points, the lowest and only a month. the last time it was that tight was the day before last month's cpi reading. we are seeing them sitting on their hands and waiting for that data tomorrow. shery: we have actually seen the
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surprise index. we rightly file this metric when it comes to the state of the economy. that link with asset moves seems to have strengthened. what we know at that point? emily: the link between the s&p 500 and the city economic surprise index for the u.s. is at its most negative since 2015. so it basically means stocks are reacting more negatively to good economic news, or economic news that beats expectations. so it all has to do with that same story of stocks do not like any piece of data that is going to indicate a more hawkish fed, a more aggressive fed. same story, but if it does feel like stocks are reacting more negatively than maybe they were a few months ago, this link goes to show that. haidi: global economics and policy editor kathleen hays, and cost asset reporter emily graffeo on those market moves. let's get you to vonnie quinn in
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new york with the first word headlines. vonnie: boj governor kuroda has pledged to maintain monetary easing. he spoke at the annual meeting of the institute of international finance in washington where he defended boj policy, saying japan's inflation is different from the u.s. and europe. he said the central bank need to continue easing to secure its inflation target. he also reiterated his view that japan's recent currency intervention was appropriate. >> we continue our monetary easing in order to achieve 2% inflation target, or price stability target. the economy is still recovering from the pandemic, so we have to continue to hold the economy to recover. vonnie: the bank of england governor andrew bailey is under pressure to extend emergency guilt purchases, hours after promising to end it. the ble was forced to reiterate
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his ultimatum after the central bank had privately told bankers deadline could be extended. the confusion roil the market, weakening the pound and sending gilt yields higher. opec has slashes projections for the amount of crude it will need to pump by 440,000 barrels a day. the oil consumption downgrade gives further insight into motivations for the supply cut agreed last week by saudi arabia and their allies. china may start importing corn from brazil as early as december as part of a drive to reduce dependence on u.s. and replace supplies from ukraine. some 45 facilities owned by companies have been preapproved by brazil to export to china. a rally on chicago corn futures are forcing china to look for alternative supplies. the white house is considering a total ban on russian aluminum in
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response to the military escalation ukraine. the biden administration is weighing a number of options including an outright ban or a large increase in tariffs. russia is the world's second-largest producer of aluminum after china. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, national bank's says there's -- national bank of australia is avoiding any forecast revision for the pound. we will discuss their currency strategy later this hour. but first, we speak to city's chief global equity strategist to discuss his forecast. we're live from the new zealand investment conference just ahead. this is bloomberg. ♪
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>> for me, the bar for such a change is very high because we have not yet seen much evidence that the inflation, the labor market, that that is yet softening. so i think we are quite a ways away from anything like that. haidi: minneapolis fed president neel kashkari there.
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our next guest says he is positive on financials, expecting higher margins increasing to offset balance sheet worries. robert buckland is here with me here in sydney at the city australia and new zealand investment conference where it is day two. great to have you with us, especially during these really unusual times. let's start with your call on financials. as we get bank earnings this week we will know more but are you looking for signs of balance sheet distress? robert: i think there is a big trade-off and banks. interest rates are going up which makes it easier for banks to make money out of their day job. at the same time as interest rates go up people worry about the economy and what impact that could have on credit risk and so on. we think the good news on interest rate margins and profits will be enough to counter the fears about balance sheets and credit write-offs. haidi: there is a liquidity concern when it comes to treasuries. is that a sign of dysfunction to you yet? are there worries?
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potentially that would be the only thing that causes the fed to change course. robert: the u.s. treasury market has been wobbling. the u.k. gilt market has definitely wobbled. there are issues because interest rates are going up so fast. we were expecting interest rates to go up not this quickly and that is creating disruption in all of the bond markets around the world. haidi: we have been seeing tech really pressure but you are still overweight on the sector. why? robert: we did a lot of work earlier this year looking at the sensitivity of tech and the nasdaq of rising interest rates. everyone knows that when the s&p was down 2% on the higher rates, the nasdaq was down 4%. but the gain is moving on and people are buying tech at a relative sense at least because there is better earnings defensiveness in parts of the big bucha tech sector relative
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to what we think will be earnings weakness elsewhere in more cyclical stocks. shery: you mentioned the u.k. guild space. how do you look at u.k. assets? given the enormous selloff we have seen in that market, stocks could be cheaper but can you bargain in an environment where you do not know with politics are going? robert: i would sort of distinguish between bond assets and equity assets. i would emphasize to your viewers that 70% ftse 100 earnings come from outside the u.k.. so really the ftse 100 is a global earnings index, not the u.k.. that is one reason we like the u.k. from an equity perspective. from a bond market perspective it is a different story. haidi: do you see opportunities given with the kind of macro and rate driven disruption to
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markets it is a fairly indiscriminate selloff. do you see opportunities in the euro? robert: we like the u.k. more than continental europe. continental europe is closer to where the problems are. within europe i would emphasize i like the u.k. over continental europe. there are major issues. we have a tough winter to get through can content on -- through in continental europe. haidi: the other question is whether valuations are low enough to meet expectations. do you think they are? and is the major driver going to continue to be central banks, or other elements like economic activity and recession risk? robert: i describe it to clients as we think the market is on the right peer now. let's say we started on 18, 19 times, they have derated down to 13, 14 times. i think we have the right multiple. but the problem is we probably
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do not have the right ease. we have the right p, not the rig ht e. we're moving into it being less driven by interest rates. haidi: china, are you expecting a pathway out of covid zero? what does it mean for chinese equities? obviously the longer-term growth story could still yield positivity. robert: i am a bit of a stale ball on china. we moved china to overweight months ago and it is not worked. part of the logic was we could see potential catalysts coming out of china opening up or may fiscal policy around the congress or rate cuts. it is the one economy in the world steered where we have an acceleration in gdp. i can see a bunch of factors and catalysts that could move in china's favor although it has not worked up until now. haidi: we will talk to you after the party congress. rob, great to have you with us. robert buckland here in sydney.
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we are going to continue our coverage on day two here in sydney. we are going to guy debelle, talking about the energy transition. plus, head of apac trading strategy will join us. you can also get a roundup of the stories you need to know in today'e edition of daybreak at dayb . you can play around with the settings to just get the news on the industries and asset classes that matter to you. this is bloomberg. ♪
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haidi: taking a look at the day ahead for us joy and new zealand, new zealand food prices have risen .4%.
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also get a read when it comes to the consumer inflation expectations. last month that reading was back to its lowest level in four months. shery: let's take a quick check of the latest headlines. apple is withholding new employee benefits from staff who work at its only unionized retail store and a move that could inflame labor tensions. this week the company increased health care and educational benefits for all workers. employees working at a store in a baltimore suburb were told that their union would need to negotiate for the parks. shares jumped the most in two months after merck said it would maintain its partnership with the company on messenger rna cancer vaccine. moderna will receive $250 million from mark in exchange
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for future commercialization of the vaccine. they say their treatment for high stage melanoma is in mid-stage testing. they are extremely confident of getting full u.s. approval for its experimental alzheimer's drug. the ceo told bloomberg that more testing data is due next month. he expects a decision in january and is confidently drug can win medicare coverage in the u.s. >> the drug discovery and development is the most sophisticated business in modern days. and i would say it is like a puzzle game. so, pc's should be coordinated perfectly well at one time. then you can see that picture or
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landscape, and in this case it is a successful drug. shery: asml has ordered u.s. staff to stop servicing customers in china after the u.s. new restrictions. the announced rule changes in an emailed to employees. asml has held back from selling some of its most advanced technology to china, as it strikes a balance between the two nations. take a look at how currencies are trading. of course we have seen the dollar a little more stable these days but still haven flows really strengthening the currency at that 1346 level. aussie around $.62 level. we have seen it fall again, really headed towards those lows of the year. aussie bonds also getting for the first time. we were here in the rba assistant governor talking about the neutral interest rate likely around 2.5%. take a look at how the japanese yen is near that 146.90 level
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again, in which it triggered intervention a couple weeks ago. and the offshore yuan very close to that 7.20 level, and the weakness continuing with the pboc strengthening its reference rate for a 30th consecutive session. take a look at how markets are trading at the moment. australian futures under pressure, down .3%. we are seeing kiwi stocks unchanged at the moment. we continue to fall the kiwi dollar, which has been rising marginally but still posting a monthly close below that 20 year trendline. we continue to see the u.s. dollar strength affecting the asian currencies. nikkei futures pointing slightly higher. plenty more to come. this is bloomberg. ♪
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>> we have announced that we will be out by the end of the week. you have three days left, you have to get this done. >> the bank of england can talk tough but fundamentally they have to extend this. >> they are trying to hold things together as best they can. >> the confusion i think comes between the financial side of the bank of england and the monetary side, which are trying to do two different things. >> monetary and fiscal policy being across words with each other is a very dangerous cocktail for a markets. >> it has been trying to maintain price stability and at the same time address financial stability issues with its other instrument. >> this is not yet looking to me like a very steep and deep recession. >> i do not think we are at risk of a financial crisis. >> i think they have to come up with their version of whatever it takes. >> by this time next year the bank of england will probably be cutting interest rates.
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shery: economists and bankers giving their take on the boe and what is next for the u.k. economy. our next guest says the british pound is currently a fast moving target. let's bring in ray attrill at national bank of australian. good to have you back. given what the boe is facing right now, whether denying reports of extending its bond buying program, whether it is going out and buying up all those assets, what is the signal you are getting from the central bank that will have eventual implications for sterling? ray: we are heading towards you november 2 mpc meeting where markets are currently expecting the bank of england to raise base rate by at least 100 basis points and followed up with another 100 basis points in september. at the minimum they are going to have to deliver on that if sterling is to receive much positive momentum going into november and december.
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obviously the other big moving part is what happens with government fiscal strategies. that is the underlying cause of the extreme volatility and upward pressure we have seen on gilt yields. ultimately, the bank of england's financial stability imperatives will override whatever macroeconomic anti-inflation part of their mandates. i have no doubt if push comes to shove they will continue to support the guilt -- gilts market. if we see signs the government is rolling back significantly on their maxi, mini budget we had a few weeks ago, that may have a calming impact, but it will take a while for international markets to think that government policy is a lot more credible or less incredible then seemed the case two weeks ago and how does that interplay with the bank of england. if fiscal policy looks like it is less incredible in three weeks than it does at the moment, that might help sterling but also the bank of england is
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not as minded to raise rates as much as currently being indicated. and the bank of england chief economist indicated that will work the other side. we've been reduced to flatlining our forecasts in terms of not wanting to be five cents or $.10 off the mark come november, december. shery: i don't think he would be the only one here. on the other signed of that pound trade is the strength of the u.s. dollar. what are you expecting to see on those inflation numbers that could give you some indication of when we could see that peak dollar strength? ray: we have said we think it is one side or other of years and, which sounds like a copout but it is highly dependent on not just the inflation numbers tonight but the next two to three months. but we think markets will get more confident in the view the
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fed will not have to exceed existing markets with asians. one of the pre--- market preconditions. i think it is too soon to say that will necessarily be the case by the end of the year. i would say given the inflation shock we had last month and the market reaction that caused, markets are probably better braised for a small upside surprise tonight than they were a month or so ago. perhaps there is more asymmetry as to how markets will respond. haidi: when it comes to the yen we saw the fresh 24 year low. when it comes to trading in the yen and past levels of intervention, do you see more policymakers opting for intervention? ray: well, on the won, no, tehre's no -- there's no
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evidence that they have been active. as far as the bank of japan is concerned, it was interesting what governor kuroda said last night. although he is supportive of the government efforts because intervention is there barely wick, not the bank of japan. that is telling. our rate strategist view is treasury yields are probably going to spend time north of 4% in the next few weeks or months and on that basis you have to say the risk does dollar yen going to continue north and we could see that 150 psychological level at some point. although that may well draw intervention and another one yen move in the day, might see another first of gunfire from the bank of japan. i don't think markets are traveling in much fear and would
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see any selloff as a result of intervention as an opportunity to reload on the long side. haidi: what about the aussie? so much of that depends on what the greenback continues to do but we have seen a lot of the fundamentals quite favorable in terms of trade does that become a bigger driver going forward as we see that shift from the rba? ray: i think only at the point where the u.s. dollar starts to weekend. it is dollar strength that has driven a wedge between where the aussie has been trading and what a fundamental fair value estimate that has a large weight to the terms of trade would have you believe. that gap is at least five cents. and at a point where the dollar starts to weaken, its commodity prices remain relatively elevated, i think we see the aussie headed back to 70. in the meantime i think risk sentiment is absolutely key and in the driving seat. if we are going to see another turned down in global risk
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sentiment, at this stage it is hard to have any confidence of the lows around 62.5 in aussie have yet to be seen. and you have to make allowance for aussie mating -- maybe getting that 60 psychological level. haidi: ray, always good to have you with us. ray attrill there. let's take a look at the credit markets. it could be one of the best times to invest across credit in at least two decades. let's bring in annabelle for morning calls. where is this strategy coming from? annabelle: this is from an interview we had with the deputy cio for credit at apollo global management, john zito. he's getting pretty excited about where bond yields are in the market because of the opportunity. particularly when you look at investment-grade credit. he says the yields on that comparing to what we had that
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triple see rated debt around this time last year. he is very optimistic about the outlook. take a listen. >> we are pinching ourselves a little bit where yields are today globally. we have been building our credit is this for the last 20 years and effectively a majority of that time we have built it with rates at zero. shery: what are other people saying? some are less optimistic about opportunities in the markets at that point. annabelle: we also had an interview with boaz weinstein and he was more sanguine. he said that basically markets are trying to figure out what to focus on. first you had concerns around inflation, supply chain issues, he still have a fed leading on the market. he says basically we are in a market fog and it will really take a long time for that to clear. we are not talking just the next two months, he is looking at a timeline that extends over years. take a listen to this exclusive
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interview. >> we're all used to selloffs that are fairly quick. even 2008 was five or six months, where at the end, you can wonder, is there an all clear sign? we have the fed behind us, quantitative easing. now we don't know who the savior is because at the end of all this we are going to still have tightening and shrinking the balance sheet. selloffs were just a prelude to a bull market one or six months later. to me, this is the feeling we are going to be worried about some number of these things, or new things, for potentially quarters and maybe even years to come. >> so, no capitulation yet, no flush which gives us that all clear signal. how much of that is based on truly not knowing what the fed is going to do, or we do not know which potential problem is real and which is fake news?
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>> these things are so hard to predict, i even want to be cautious about opining too much, because it is such a confusing market. there has not been a single thing to say ok, this is why 20% is not enough, it should be 40%. let's take inflation. forward inflation is expected to come down a lot. you can look at tomorrow's cpi print, if it comes in .1 below or how you can get excited, but the market is telling you inflation will not be the problem it is a year from now. if a few months ago that conviction is shaken, then we are going to have a real strong selloff. if somehow russia, heaven for bid, becomes more asymmetric, we are going to have a real problem. we just don't know, and we should not rely on the lessons people learned may be incorrectly for this environment we are good between 2008 and 2020, which was the fed is your put, don't fight the fed, and
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dips should all be bought, and being sure is fighting the fed. this really does not feel like this environment in particular because of where the central banks are versus then. haidi: that was boaz weinstein there. coming up, opec plus cut global oil demand, starting slowing growth amid a possible resurgence of covid. this is bloomberg. ♪
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vonnie: i am vonnie quinn with the first word headlines. u.s. fed officials committed to raising rates to a restrictive level in the near term, but there is concern about the economic impact according to the latest minutes. some policymakers noted it would be important to calibrate the face of further tightening to mitigate risks from global economic uncertainty. by many felt the cost of doing too little to fight inflation was worse than taking too much action. in russia, president vladimir putin said the explosions on the nord stream gas pipeline set the most dangerous precedent. putin blamed the act of terror on the u.s., ukraine, and poland, cong them beneficiaries of the blasts. putin added the attacks show
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that any critically important object of transport, energy, or utility infrastructure is under threat. bloomberg has learned american suppliers are pulling back staff from top china chipmaker. sources say firms are doing so in the wake of new u.s. regulations. he suppliers often send workers to customers to help with manufacturing. it's also been placed on a u.s. unverified list, restricting their ability to buy american technology. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: opec has slashes projections for the amount of crude it will need to pump this quarter, making the case for the contentious supply cut announced last week. natalia, given the drumbeat of recession warnings perhaps not surprising to be worried about global demand but supply is a
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concern. natalia: opec now thinks that the amount of oil needed to produce in the fourth quarter in global growth will be lower but basically the move justifies what they did last week which is a reduction of opec-plus production by 2 million barrels a day. although we know that the real output cut will be about one million barrels a day. on the demand side as you mentioned, fears of a global recession. we have rising dollar which is a double challenge for many emerging markets because not only do they have high energy prices, but they also have a rising dollar. and one data point we actually keep an eye on his travel and global demand for jet fuel. it has been really strong during the summer, but now it is slowing down, especially in the asia-pacific region. now on the supply side there is a lot of uncertainty. we know the global capacity is so limited and on top of that
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now we have uncertainty related to russian crude. haidi: russia's deputy prime minister says the country is ready to redirect its oil flows after the price cap comes into effect. how does that play out for the global crude market? natalia: before february 24, by different estimates russia's applied about 3.2 million barrels a day to the european market. according to our calculations, russia has lost about 60% of supplies to the european market. analysts i spoke with expect that the global crude market will lose from one million to 1.5 million barrels a day after december 5. now, alexander novick is very vocal that russia will have to redirect flow. now the question is how much china, india, and turkey be able to take.
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because these three countries stepped in after european and western buyers decided not to buy russian crude. but there are still a lot of limitations. if you look at data which bloomberg tracks, there was a peak of 2.2 million barrels a day that russia supplied to those three countries in june, but now it slows down. we also know that some indian refineries are not able to consume too much russian oil, because the type of crude is not actually the same. shery: and it is not just oil getting affected. the biden administration considering a ban on russian aluminum as well. natalia: it is a bloomberg scoop today. russia is the world's second-largest producer of aluminum after china. the u.s. bought about 10% of russian aluminum. now the question is who will step in and who will supply that amount of aluminum. we know that u.s. producers will not be able to do that. and canada, which supplies a lot
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of aluminum that is good for the u.s. market, will probably be able to supply more. a lot of uncertainty, a lot of volatility, and we saw that in the price action today. shery: natalia kniazhevich with the top stories in the commodity space. be sure to tune into bloomberg radio to hear more from the day's big newsmakers. now broadcasting live from our studio in hong kong. stay with us. ♪
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haidi: the japanese drugmaker had a breakthrough when it's experimental alzheimer's drug became the first medicine to blunt the progression of the disease in a large-scale trial. the ceo told bloomberg he is extremely confident of winning full approval by the end up 2023 from drug agencies in the u.s., europe, and japan. >> the drug discovery and development in the most sophisticated business in modern days. i would say it is like a puzzle game. so, pieces should be coordinated perfectly well at one time.
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then you can see that picture or landscape and in this case it is a successful drug. in our company, we call this puzzle game 4r. those four are right hypothesis, right dosing, right cooperation, and right end points comes together at one time like a puzzle game. so we see a very good landscape. namely, the drug success. >> the data you showed showed significance. but experts argue the clinical benefit and issues of the side effect. what is your answer? >> at the end of 18 months, we compare placebo and the drug, how it's different. and the difference was 27%. and how good this 20% is.
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experts said in alzheimer's disease tryouts, the affected size is between 20% and 30%. it would be clinically meaningful. so, 27% is relatively high part of this 20% to 30% clinical meaningfulness. so i believe it has high clinical meaningfulness. >> previously the product was criticized for its high pricing and was forced to cut the pricing by half. tell us about your pricing strategy? how are you going to price the product? >> patients can live in any l ocations, live in, any income levels live in any circumstances and conditions. so the major, major point of
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pricing in this case is affordability. >> how do you think you can win insurance coverage? >> we are confident that this is codified as what the authorities said as high quality evidence. of course we are starting a constructive dialogue with agencies and hope agencies will understand this. >> what do you think is your competitive advantage? >> i am not in the position of talking about competitive rocks at all. but at least i can say the advantage here because it has no -- so from the first infusion it is effective infusion.
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then it targets the center of a neurotoxin, centering on that. side effects are relatively low. so i believe the drug has strong competitive advantages. >> what is the latest with schedule of development for injection for? >> we have submitted accelerated approval for fda, and we have an action date of accelerated approval as of january 6, 2023. also, we are scheduling to submit for traditional full approval to fda by thje e -- the end of march, 2023. and the same schedule for pmd japanese authority, and ema, european authority. and we're expecting to acquire
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full approval from those three agencies by the end of 2023, december 2023. shery: speaking exclusively with bloomberg there. these are the stocks we will be watching when trade opens in australian. shares of aluminum and metal producers could be moving following news that the biden administration is considering a pleat ban on russian aluminum, given the military escalation in ukraine. lithium related shares could also follow their overseas peers lower after morgan stanley flagged a drop in volumes and prices for that commodity. coming up, we're live at the citi australia new zealand investment conference and we will be speaking exclusively to fortescue future cfo. we will also be speaking about the outlook for the japanese economy. this is bloomberg. ♪
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