Skip to main content

tv   Bloomberg Daybreak Australia  Bloomberg  January 29, 2023 5:00pm-6:00pm EST

5:00 pm
the first time you made a sale online was also the first time you heard of a town named... dinosaur? we just got an order from a dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. godaddy. tools and support for every small business first. haidi: hello and good morning. vonnie: good evening from bloomberg's world headquarters
5:01 pm
in new york. it is a big week for a -- for major central banks and investors are expecting the fed to slow the rate of rate -- the rate of rate hikes. haidi: trading resumes after the weeklong holiday driven by consumption rebound. vonnie: asia's richest man hits back at hindenburg research calling its actions a calculated securities fraud. let's get a quick check on wall street. last week we began with major tech earnings and we saw a bit of a rally. the s&p 500 up a quarter of a percent and more than double for the nasdaq. that is not saying much since we are only four weeks in. maybe it is a little bit of fomo. we don't know what we will get next week. we will get a raft of tech earnings next week but the major event of the week is a federal reserve meeting. armed bulls will have their
5:02 pm
first challenge of 2023. -- bond bulls will have their first challenge of 2023. and a quick check of crude. still below $80 a barrel. that could be a story for later in the year. haidi: let's take a look at markets are ready trading. we are watching new zealand markets. the devastating floods will see an impact when it comes to trading of some of the related stocks. we continue to monitor the latest out of auckland. we got the latest trade numbers from new zealand. we will be watching to see if we see an impact as we see the impact on travel, property shares. sidney futures up by a 10th of
5:03 pm
1%. a muted start to the trading week. we do have news about this sooner than expected return of chinese students. watching for some education and university related stocks as well as broader consumption trends. the aussie dollar is trading at 71 u.s. cents. it will be a big week giving way to the first policy decisions of the year for some of the major central banks. we are focused on the reopening of china markets as we look to potential he re-enter a bull market. -- potentially reentering a bowl market. -- bull market.
5:04 pm
this is going to be one of the key determinants one egg comes to broadly the regional markets -- chinese markets as well as other chinese assets are such an anchor as. the week that the four week rally. vonnie: we may see stocks leap higher at the beginning of the year. if we take a look at this charge. it shows the fear-greed indicator. many of the stocks we are watching on the shanghai index is into overbought territory. that does not mean they will go anywhere anytime soon. it is easy to be overbought when you have had such a selloff for such a long time.
5:05 pm
cooler u.s. inflation numbers for december may pave the way for a 25 point hike. the takeaways from the latest reports. >> the federal reserve, the outliers a couple months ago talked about downshifting to a 25 basis point hike. as more voices have piled on, this is a big question. going into the wednesday meeting, this is what fed officials and investors are waiting now. the headline pce inflator rising point on matching the previous month. -- rising .1 matching the previous month. the current pce deflator, the one the fed watches closely, up .3 in december. across the board looking pretty
5:06 pm
good. interesting that thesein numbers for december are making inflation look less than the fed thought it would be at the end of the year. let's move on to the flight in the ointment. bloomberg economic says there is no disinflation sign at all in powell's preferred gauge. let's look at the key factors. core services were up more than expected at 0.4%. and services are where we see the biggest impact of wages. they are still running hot in the u.s. the tight labor market. the pce deflator take out rents housing cost of 4.1% year-over-year. it is still stubbornly high. on the side of -- let's
5:07 pm
downshift to see where things go next, retail sales fell. the consumer spending part of this showed weakness whether you look on the monthly basis. that is one reason why janet yellen is concerned about recession. >> i don't want to minimize the risk of recession in the absence of further shocks. it really comes down to the labor market. i guess the path that i see to maintaining a strong labor market while bringing inflation down does involve a slowdown in growth. >> fed officials made it clear that if they have to raise hikes to get a recession, they well. janet yellen reminding us there is another reason why the fed they decide to slow down the pace of rate hikes at this
5:08 pm
meeting. haidi: does that mean 20 five basis points is baked in? -- 25 basis points is baked in? >> we heard chris waller the board of governors who has been one of the early ardent voices for hiking rates aggressively but in some recent speeches he has opened the door saying we have done enough that we could slow down. the thing that will be in focus now besides downshifting is what they see next. markets are already pricing in a series of rate cuts in the second half of the year. will powell come out saying -- we have to stay tight? or will he open the door wider to sooner rate cuts depending on what the economy looks like over the coming months? haidi: kathleen hays ahead of a big week for central banks.
5:09 pm
adani has published a lengthy rebuttal to allegations of fraud by hindenburg research. we have the details on the latest we are hearing in this saga. >> the context -- we had adani meeting with investors on thursday. the follow-up, sunday in india -- a long report setting out to respond to the ada questions raised in the hindenburg research report. that report alleging market manipulation and accounting fraud. the overall response is 413 pages. impossible to get all of the details. the overall tone of the rebuttal , the language is strong. adani singh this is nothing short then calculated fraud but he also says this is an attack on india.
5:10 pm
adani is seen as closer to the prime minister than any other local alien there. he is calling -- the other point that he picks up on relates to the timing of the report. he said that was calculated to time with the company's follow-on share sell. adani says the report was timed to jeopardize that. we have seen the anchor portion of this doing well. the subscription stance at 1%. a lot of questions still coming through including from bill ackman who tweeted last week that he thought the hindenburg research report had a lot of credibility. he has come out with another saying he thinks there are a lot of issues for banks involved. and also they need to be doing a lot more due diligence as well. we will see how those stocks come online but so far we see
5:11 pm
them losing north of $50 billion. vonnie: we will see if we get a response from jeffries. let's get to su keenan. >> u.s. house speaker kevin mccarthy and president biden have agreed to meet on wednesday to discuss raising the u.s. debt ceiling. an agreement could produce government spending and avoid a sovereign default character mccarthy said while reductions in social security and medicare should be off the table, all discretionary spending including the defense budget should be reviewed for waste. china has reported a sharp drop in new covid related deaths following the lunar new year holiday despite a spike. more than six -- more than 6300 deaths were recorded at hospitals. the true rate could be much higher as officials are not counting those who die at home or in aged care facilities.
5:12 pm
in israel they are bowing a vigorous and targeted response to palestinian attacks. the prime minister's morning is the latest sign that tensions are unlikely to ease soon. on friday palestinian man shot and killed seven civilians and that followed a deadly israeli rate in a west bank city. january has been one of the bloodiest once in years in israel and the occupied west bank. ftx co-founder sam bankman-fried has denied trying to influence a witness in the governments fraud case against him. his legal team has accused u.s. attorneys of portraying him in the worst possible lights. federal prosecutors have asked for additional bail conditions on bankman-fried saying he reached out to an ftx employee in an attempt to sway their testimony. auckland is bracing for more rain dust a day after the city was hit by a severe summer storm that left at least four people dead.
5:13 pm
the city experienced it's what just 24 hours on record resulting in widespread flooding around the city. forecasters say another wet weather system known as an atmospheric river is forecast to bring more heavy rain to the upper north island. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am su keenan. this is bloomberg. vonnie: still ahead we get some analysis on the brewing ship were between -- ship war between the u.s. and china. the founder and managing partner of threadneedle ventures tells us why solid leadership will be critical for tech firms and their investors in the coming months. this is bloomberg. ♪
5:14 pm
5:15 pm
5:16 pm
haidi: you are watching daybreak as joe you looking at the week ahead. chinese markets had to reopen after the lunar holidays. stocks in hong kong rallied on the return last week. suggesting a recovery is gaining traction on the mainland. we will also be looking out for manufacturing numbers. wednesday come india is unveiling a budget. economists are expecting the prime ministers budget to target
5:17 pm
a deficit. on friday the u.s. jobs data is expected to show the labor market starting to lose him but remaining far from estate consistent with nonaccelerating inflation. we have pmi numbers coming out of singapore. the big one to watch is the fed opposed to slow rate hikes for a second straight meeting on wednesday heartened by inflation slow down. they will also debate how much further they need to heighten -- titan. we will also be watching great decisions out of the ecb and boe. it is a busy week. vonnie: we are spoiled and it starts today. we continue to watch tech earnings this week as job cuts accelerate and demand seems to be waning at least in certain subsectors. wall street expect tech sector earnings to fall this year. that is your week ahead. our next guest says she has changed her public equities
5:18 pm
strategy since last year. threadneedle ventures founder is here. ann berry, thank you for joining us. your public equity strategist -- strategy has changed. ann: taking unfortunate advantage of losses. at the moment i am holding a disproportionate amount of cash. rates are attractive. waiting to see which of these tech companies i would like to get back into are going to execute. vonnie: we have seen some earnings come in already. do you anticipate money will flow back into these companies? ann: let's take microsoft as an example. i think the bad news -- [indiscernible] there is real conviction of the management team.
5:19 pm
what we will see this week is as we see whether it is apple, amazon or the other big names, they will come out with clear plans. those with an articulate plan park going to be punished. haidi: where else do you see opportunistic reasons to buy in the market given there is so much uncertainty given the broader macroenvironment? ann: tech is an interesting one because that selloff has been so profound. waiting to see if there is a good reentry point will capture the imagination for the rest of the year. other sectors continue to do well like energy. that continues to be a strong sector. and there are some solid companies, irrespective of new innovations they announce, the
5:20 pm
strength of their balance sheet and the certainty of demand stability through the cycle. i think we will see some real demand there as well. haidi: what do you think are the biggest risks in the next three months or six months? ann: number one is the consumer turns out to be much weaker than had been anticipated. one of the sectors i am staying away from in the u.s. is discretionary consumer specialty retail. the consumer's bacmulated through the crisis really start to pick up an addition to sentiment. cash getting burned and the sentiment starting to dwindle. that is where the risk is to the downside not just in the u.s. but also in europe. vonnie: the next few weeks and the u.s. will be toweling. activist investors have been leading the way. if you think about salesforce, who will be successful?
5:21 pm
ann: the crystal ball is a tough one. i think we need to define success. where is the opportunity to deliver the best outcome to shareholders? not just institutions. the activists force management teams to look at their business through the lens of private equity. looking for ruthless capital, elocution advocacy, productivity gains and also looking to streamline and get operating leverage. success is defined as whether management teams are looking at themselves through that lens or whether it takes activists to force teams to do that. success is going to be defined as, will we see better efficiency gains, better capital allocation decisions. vonnie: we cannot wait to see what you do in the coming months
5:22 pm
with a cash you have disproportionately of pure ann berry with us. you can get a round up of the stories you need to know to get your day going on today's edition of daybreak. you can also customize your settings so you only get news on the industries and assets you care about. this is bloomberg. ♪ the first time you connected your website and your store was also the first time you realized... we can do anything. cheesecake cookies? [together] the chookie! manage all your sales from one place with a partner that always puts you first. godaddy. tools and support for every small business first.
5:23 pm
5:24 pm
vonnie: a quick check of the latest headlines. some of the news it we were reporting earlier, goldman sachs cutting the ceos compensation by 30%. he is still getting 25 million dollars. the compensation committee made the decision based on factors including the banks performance and how it did compared to its main rivals. the share price and profit both
5:25 pm
tumbled and earlier this month goldman also announced plans to eliminate around 3000 jobs. u.s. regulators investigating yet elon musk's role in teslas self-driving car claims. officials are weighing whether elon musk made an appropriate statements about the technology which has been the focus for tesla. haidi: new zealand's biggest city is bracing for more heavy rain even as auckland mops up after a severe summer storm that left at least four people dead. what is the extent of the storm? what are we watching out for now? >> the storm friday afternoon -- to some extent it was expected but the severity was unexpected.
5:26 pm
and the speed with which it hits. within an hour of it raining heavily people were having to escape their houses as water was waist deep or neckdeep. the damage across auckland is extremely widespread. 5000 houses have to be assessed and already people cannot go back into them. the houses are teetering on the edges of cliffs. vonnie: what is the outlook for the coming days for the weather? >> unfortunately there is more bad weather on the way and that is for the auckland region as well as some of the other areas hard-hit by the storm including to the south of auckland and northland above auckland. the problem is the land is already so rainsoaked which means the risk of slips is
5:27 pm
really increasing. haidi: what has been the government reaction? i know we are in a weird state of transition when it comes to the leadership now. >> that is right. the new prime minister has only been in place for three days when he flew out to auckland to see the damage. it has been a baptism by fire. the mayor of auckland is also relatively new so it has been a tough 48 hours for them in auckland. the political reaction is the pledge to do as much as possible giving grants of money etc. but we really don't know the extent of the economic loss. there is no way to find out how bad it is. the insurance companies are all assessing at the moment. vonnie: ainsley thompson with the latest as auckland braces
5:28 pm
for more bad weather that could continue to wreak damage. markets wise we are watching for some of the stocks affected across property and tourism on the back of the flooding that we saw pure coming up next we will be joined by an associate professor of international history from tops university to get his thoughts on washington's efforts to curb china's tech sector. this is bloomberg. ♪
5:29 pm
5:30 pm
vonnie: you are watching daybreak us trillion. chinese stocks are set to pop at the open after a long break for the morning -- for the lunar new year. what sorts of gains are strategist seeing? annabelle: you can take a look
5:31 pm
at the proxies as a suggestion. some of these performed extremely well. there has been a lot of positive sentiment because we had those micro frequency indicators, things like ox office sales and travel data. goldman sachs says this reopening has not been quite as bad as has been feared. we've seen the follow-on effect that will come through for things like hotel chains as well. these are the closest correlated to the index. we could be looking for the csi 300 to enter a bull market. the question is whether that's going to be sustained. essentially, what they are saying is yes, we will see these gains sustain over the course of 2020 three. there's not only the domestic factor, you see the economic rebound in china.
5:32 pm
there's also other factors -- investor positioning has yet to be replenished after the selloff last year and there are things like the fed easing inflation. european recession fears not quite as bad as expected. all of this is important for global equities overall. haidi: what about the gains and it comes to chinese tech giants now that it seems the regulatory tide has turned? annabelle: we did have the signal that beijing could be easing its multi-crackdown on the tech sector. at the same time we had an easing with its covid zero policies. these are the two biggest companies in china -- big gains for tencent and alibaba. overall a very positive. the point is whether we are looking at valuations -- not at the levels we had pre-pandemic, but we are seeing tencent and
5:33 pm
alibaba looking the most expensive they did since mid 2021. bloomberg intelligence is saying the overall sentiment could be positive but what is important is valuations are normalizing and we might need to see more evidence of an earnings recovery for those price gains to continue. they are saying you should look for consumer tech hardware. those are sectors that show value. vonnie: a u.s. general is reported to have told his officers to prepare for war with china within two years. nbc says he thinks the fight will come following the u.s. and taiwan presidential elections. the pentagon told nbc this is not its official view on china. our chief north asia correspondent, stephen engle, takes us aboard the aircraft carrier uss nimitz in the south china sea, a potential flashpoint. >> the uss nimitz carrier strike
5:34 pm
force currently deployed in the south china sea punctuates the political risks in the asia-pacific in 2020 three as lingering tensions over taiwan and north korea potentially collate, russia's were in ukraine reminds many this region is not safe from a military escalation. this come as china carries out its own exercises in the same waters as the nimitz led by its newest carrier. china and the u.s. are simultaneously flexing their muscles. the uss nimitz may be the oldest aircraft carrier in the u.s. navy but it still does its job of projecting u.s. strength here in the western pacific. 02 100 miles an hour into five seconds. while the u.s. has 11 active aircraft carriers but no other nation has more than two,
5:35 pm
including china. at both the u.s. and china have many more on the u.s. upgrades to forward class super carriers and china aims for a global blue water navy by next decade. >> what's concerning is not so much that changes in capability, it is the -- that is the intent, crucially the perceptions of intent. both sides see themselves as responding to the others regret -- to the other is aggression. that's a classic recipe for a cycle of escalation. >> u.s. carrier strike force commander met with us on the bridge of the nimitz off-camera, saying his mission is to show the flag, an assurance to allies the u.s. will be here when the time is needed. >> we are set up for the vulnerability of a military stake. when there is no communication between nations, you have two
5:36 pm
fighter jets flying closely in the air as we did recently over the south china sea, that could escalate very quickly. >> yet the likely cause of any u.s.-china military conflict may be less accidental and more political and economic. >> the next decade is probably the more dangerous one in terms of big, grandiose strategic roles of the dice by china or something like that. the long-term balance of power is extremely dependent on how both the u.s. and china manage their economies. >> the u.s. has assiduously denied there is any attempt to contain china, but actions speak louder than words. we have a containment policy and the biden administration followed up with these draconian sanctions on chips and have put a norm is china.
5:37 pm
it's naive of us to think china will not respond. >> for now, the shows of force continue, but for us, it's time to leave this soon to be decommissioned nimitz on and also aging c2 transport catapulted off over these disputed waters. stephen engle, bloomberg news in the south china sea. haidi: the geopolitical tensions are spreading to that tech sector. the netherlands and japan will down the exports of some advanced chipmaking machinery to china after winning an agreement with the biden administration. the alliance is seeking to limit beijing's semiconductor manufacturing ability for military and ai use. joining us is christopher miller from tufts university. beijing is a long way behind in terms of realizing its global
5:38 pm
missions when it comes to building a self sustained chip supply chain. you've estimated that to be at least half a decade or more behind. how much does a move like this restrain their ability to get there even more? christopher: the fact that the netherlands and japan are going to join alongside the u.s. in restricting the export of advanced machine tools needed to make semiconductors is a really big deal. it's going to make it even more difficult for china to build up the machine tool manufacturing needed to make chips. today in those three countries, the u.s., netherlands and japan, produce almost all the critical tools needed for chipmaking and china produces none of them domestically, anywhere near the cutting edge. right now, china has no response to these measures. it's got to spend the next several years, perhaps the next decade to build the requisite machinery.
5:39 pm
vonnie: how much does this further in danger the big players. who are the winners and losers here? christopher: the companies that make machine tools are not happy about the restrictions. china is an important market, not the most important market. it's only the most cutting edge machines that are restricted but this is going to be a disruption for some of the companies involved. all of the companies realize there are geopolitical and military factors at play that have moved this out of the commercial sphere into a seer of security and politics. they have understood for the last several years this is the direction of travel when it comes to restrictions on exports. vonnie: china may have a problem getting the equipment. can it get the talent instead mark -- instead? christopher: the talent is in a
5:40 pm
tiny number of firms that have built up unique manufacturing expertise. we are talking about manufacturing at the nanometer level. you need extraordinary precision to have these machines operate effectively. it's not something you can study from textbooks and understand how to do. holding up talent can be a priority of china's, but the reality is there's no simple way you can train new people and toss them into a business and hope they will reach the requisite level of precision. the u.s. controls make the problem harder because they prohibit u.s. citizens and green card holders from working with certain chinese firms and that is going to disincentivize u.s. experts from helping the chip industry restricted sectors. vonnie: china has very well anticipated this. does it do in retaliation? you've seen china not export
5:41 pm
solar panel technology. does it do something else? christopher: when it comes to semi conductors, we are almost four months past the controls last -- the controls announced last october. the for direct retaliation might have passed. if you look more broadly at the relationship, the ratcheting up of tension continues. solar is the most recent set -- most recent step. we should not expect any direct retaliation on semi conductors in specific. haidi: christopher miller, great to have you with us. let's get you over to su keenan what the first word headlines. su: e start with -- we start with adani -- he raised a majority of questions raised by hindenburg and called the report calculate a securities fraud as well as an attack on india.
5:42 pm
the response was time to run the last leg of the flagship firms follow on share sale. treasury secretary janet yellen says the u.s. economy remains at risk of recession amid high interest rates. yellen told bloomberg news she is encouraged a replacement is coming down and the labor market remains tight. economists expect the u.s. gdp to shrink in the second and third quarters, seeing a 65% chance of recession in the coming year. china has resumed issuing visas to japanese nationals, ending some of the retaliatory measures it took against covid-related curbs on its own travelers. the chinese embassy in japan issued a statement on its official we chat account. china's domestic plane trips almost doubled from a year earlier during the week of the lunar new year. trips jumped 80% as aging pivots away from covid zero.
5:43 pm
in tennis, novak djokovic has won his 10th us trillion open title, equaling rafael the dolls ran slam record for men's singles titles. now holds the two major titles as does the doll. after receiving his trophy on court, he described the win is the biggest victory of his life. 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 su keenan. this is bloomberg. haidi: the chilean central bank has kept it central rate unchanged. stressing borrowing costs will not follow until a slowdown in consolidation. shery ahn reports on what is at stake. >> i am in santiago, charlie. a country that has long been considered a latin american success story with the most
5:44 pm
leftist government have to century, chilly is that i crossroads. here's what's at stake. reputation -- long seeing as a bastion of stability in an often turbulent region, investors have more than $50 billion of wealth since mass protests in 2019 and policymakers are trying to rewrite the dictatorship era constitution. since voters overwhelmingly rejected the first draft, the rhetoric has been toned down. growth -- chileans are being squeezed by double-digit inflation. it's the only country expected to contract in south america this year. the fear is new government regulations will further up the brakes on industry such as mining. future -- not only do they hold the largest reserves of copper and lithium, future to the world's energy transition, its solar and wind resources are a boon for renewables. whether the leftist government can attract the best capital
5:45 pm
needed to foster the industries of the future will help decide whether she lay -- whether it can be an investment economy or not. vonnie: up next, we hear more with an exclusive interview with the central bank governor and why she thinks interest rates need to remain high for now. this is bloomberg. ♪
5:46 pm
5:47 pm
haidi: the chilean central bank is pushing back, starting a series of interest rate cuts in april. why the benchmark rate is set to stay the highest in more than two decades. >> our decision to maintain rates brings a forward bias -- what it shows is the central bank is reaching to have enough information to see there is a convergence of inflation toward the target of 3% within two years. >> how should we interpret the fact that the language in the statement did not change at all? >> it means we maintain that bias and as long as we do not have greater clarity that this convergence is actually taking
5:48 pm
place, the monetary policy rate will be maintained. we have extra nearly high inflation and therefore, it is important to have that prior diagnosis before changing the policy. we see this change in the evolution of china, which is important for copper. in the case of copper, we had a significant increase. this change in the covid zero policy has generated a change in perspectives. this has produced an appreciation of our currency, a significant depreciation that we must evaluate carefully in the next monetary policy report. shery: how much does a stronger peso help temper inflation? >> the appreciation has a short-term effect and medium-term effect. the medium-term effect depends fundamentally on the factors behind the appreciation of the currency. we have an appreciation that's mostly multilateral and a component of reduced levels of uncertainty and we have to see,
5:49 pm
depending on the origin of different components behind appreciation what the medium-term result is going to be. the medium-term result is important for the two-year goal that we have -- that is what we are going to carefully evaluate in the monetary policy report. a withdrawal like the ones that have occurred in the past would be damaging to the economy not only from the perspective of inflation but from the perspective of capital market depth and the economies ability to react to external shocks. it is volatile at the time because they are significant amounts. shery: how is rising copper pricing effecting the economy inflation? >> it means more dollars, therefore in appreciation. that in the short term has short-term effects on the downside, but the long-term effects could be the opposite.
5:50 pm
we have two analyze in the context of what the macro economic conditions are in each moment and therefore how much the impact is in the short-term and medium-term. let's not forget our inflation target is two years away. it's not in the short-term. shery: there has been talk that a common currency in latin america. does it make sense to walk toward this or discuss it in a theoretical way? >> latin america's reality is quite different macro economically speaking and we all know a common currency requires a significant convergence of policies. it means a single monetary policy. we have very different inflationary realities, and therefore, the path to a common currency is very long and was very long and europe. when the euro was established, the economies were much more stable. it took many years, so i see this having more complexity and distance. shery: what message would you like to send to markets today? >> the central bank of chile has
5:51 pm
commitment to inflation. all of its board members are fully committed to that goal. our goal is for inflation to reach target within 3% within two years. it is not an easy task. we are doing it and we are putting effort into it. vonnie: an exclusive interview with shery ahn in santiago, chile. much more ahead. stay with us. this is bloomberg. ♪
5:52 pm
5:53 pm
vonnie: a check of the business flash headlines. flight be has -- the collapse comes less than a year after it started flying again. the ukase of lacey it -- civil aviation authority told passengers not to go to the airport unless they have arranged flights with them airline. about 75,000 customers had tickets booked with them. qatar deal searching for natural gas in lebanese waters, including an area previously contested with israel. total energies and any would each own it 33%. the u.s. brokered a deal ending a dispute over the potentially gas-rich area.
5:54 pm
this year latest business flash headlines. haidi: the financial times reporting rio tinto has lost a highly radioactive capsule through the western us trillion desert. our reporter joins us for more. what do we know? how did this happen? james: this is a really bizarre story. it's got a touch of bond film about it. the device in question is something used to measure the density of iron ore, so it's a normal device, but it uses radioactive material sort of like an x-ray. on the 12th of january, rio tinto loaded this on to a contractor's truck which then traveled 1400 kilometers down to perth. it went into a radiation facility and on the 25th of january, a longtime afterwards, they went in there and
5:55 pm
discovered that upon opening it, the gauge was broken apart with the four mounting bolts and the source itself and the screws on the gauge missing. they have absolutely no idea what happened to it. it must be somewhere along that 1400 kilometer stretch of road. how it got there is a mystery and whether they find it is a mystery as well. we will be watching to see if they actually get their hands on it. vonnie: rio tinto had its reputation severely damaged in 2020 when it blew up a sacred aboriginal site. how does this affect their reputation now? james: it certainly doesn't help. since that disastrous event, they have been pulling all the stops out to try and improve their reputation. this carelessness is not going
5:56 pm
to help them at all. it's important to note that this was a separate contractor who appears to have lost this thing. it is not rio itself, but rio has not named that contractor. i have not been able to confirm who they are. either way, it's not a great look for rio and if the worst does happen and if someone gets their hands on it -- they have said this could cause radiation burns and illness. vonnie: we will keep an eye on your reporting. ♪
5:57 pm
5:58 pm
5:59 pm
6:00 pm
vonnie: you are watching daybreak asia. we are counting you down to asia's major market opens. haidi: a story has just come
6:01 pm


info Stream Only

Uploaded by TV Archive on