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tv   Bloomberg Daybreak Asia  Bloomberg  December 6, 2021 6:00pm-8:00pm EST

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we will know in a few weeks. shery: welcome to daybreak asia. haidi: we are counting down to the major market open. investor concerns over omicron start to ease, china policy code as there is a downturn in the real estate market. the evergrande restructuring
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plan as it struggles to meet its debt obligations. shery: we are getting the current account circle narrowing in the month of october 2 6.94 $6 billion -- october to $6.946 billion. it is not surprising considering how we have seen double digit growth in exports in south korea. those numbers have started to ease. we also have the base effect starting to fade out. the surplus in current accounts for the month of october is a narrowing -- is narrowing. haidi: this is what we are seeing ahead of trading ahead of that. .1 percent, looking for communications into how the rba
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will telegraph the path forward from here. the acceleration of tapering, when the first tightening will come. the dollar is also holding onto his release rally going into that decision. it has been pummeled in the amount -- month of november. we are expecting to see an moderately upbeat session. we have reduced concerns about omicron and we have china's liquidity's for that rrr cut as well. -- liquidities for that rrr cut as well. shery: we are seeing u.s. futures .1%, -- up .1%. we have the 10 year yield also advancing to the 143 level right now.
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trading at this level in the futures market. when we are looking at the japanese yen, falling against the u.s. dollar. there are some safe havens, moving ground. at the moment, continuing to rise above $59 a barrel, this is as we had realized the gains in the new york sessions after saudi arabia boosted the price of their crude. signaling optimism about the demand outlook. it has been about china giving the economy a double dose of growth, boosting policies. that will be felt across all markets. the bank required ratio, also it has seen that property curve being east a little bit. that is i we saw the deepening of the slowdown in the housing market. let us discuss with kathleen
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hays. we have the pboc, the meeting, moving in the same direction. >> there is no doubt that this looks like a powerful orchestrated move. the chinese government officials involved in this got together and decided this was the day to make the move. the rrr cut, a 50 basis point move. the yellow line, the big banks was cut 50 basis points, small banks, rural banks, it was signaled last week when helping out -- when it was mentioned they were helping out small businesses. 18 $8 billion worth of liquidity in the economy -- $18.8 billion worth of liquidity into the economy. those who have been in the construction business, they have not been able to complete houses and more.
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the consumer is starting to recover. many manufacturers are on track. analysts see the gdp slowing to over 5% next year. the pboc is trying to play this down. there is more rate cuts for economics as well. we expect 50-100 basis points in that rrr next year. led by the president, he is saying today we are going to now take our steps to stabilize the economy and get it on track, keep it on track. going to support housing by building more subsidized housing, easing some of these pressures, talking about healthy development in the property industry. they said houses are for living in, not speculating. that is no longer the statement. what i think it's interesting to me is this is a mission
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implicitly by the government that this decision to crack down on this overheated sector, crackdown on property developers who were overextended have gone a little bit too far. they can blame evergrande, but in the end, the government is actually saying it by taking these steps, they're taking their own steps to help correct it. shery: we are going to stick with the property and speaking with haidi:. --evergrande. what have we learned here? >> what we learned on friday is when the evergrande said they were putting it into the stock exchange, what we did not know was the size and the scope of that. would that include all of the units and joint ventures of
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balance sheets? all of the op -- opaque debt that was built into that the hundred plus billion dollars worth of liabilities that evergrande had to mask? it contributed as the poster child to this property debt problem. bloomberg has learned that this debt restructuring that is in the works would include all of evergrande's offshore public bonds and private debt offerings , including by those units including scenery, journey, the one that is on the hook for the $83.5 billion coupon payment that was due yesterday. it indicates a designated as a default. -- it indicates a default. the double 14 enterprises which was the rather opaque unit that evergrande had guaranteed. that debt offering.
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it would basically amount to what would be one of the largest debt restructuring ever in china. it has been working towards a sort of a slow rolling train wreck towards this ultimate debt restructuring. we will have to see how this plays out. you can say the other poster child is a smaller developable -- developer but one of the more active issuances of overseas bonds. they have a group of bondholders essentially, advised by lazard, they have sent a formal forbearance proposal to buy the beleaguered company to avoid default. there on the hook for $500 million bond that much worse today. they want to give some time as well to seek some sort of solution as kathleen had mentioned, there is an ease going on in the property market.
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to take away those restrictions on investment for property. that is the liquidity situation at these very indebted and troubled developers. haidi: there with the latest on the property sector. we will have more on the outlook for evergrande and the real estate sector later this hour when we are joined by liu. let us get to the first word headlines. >> u.s. government officials decided to be -- boycott the beijing olympics. a new flashpoint between the world's two biggest economies. the decision is over what many calls of the ongoing genocide and crimes against humanity in enjoying -- against humanity. athletes will be free to compete even as administrative officials stay home in what is a
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diplomatic boycott. the new york stock exchange is shaking things up in its leadership. the president is stepping down to be replaced by the current head of fixed income and data services of intercontinental exchange. sharon bowen is the next chair of the new york stock exchange. the military regime has reduced former leader's jail term to two years. this is after a guilty verdict in her first trial in the myanmar coup. her conviction is for inciting dissent has been coyly criticized. global news 24 hours a day, on-air and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. haidi: the market outlook, a
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sentiment firm's option. the etf tracking of blockchain and nfts index. the sec moved to block the $40 billion video deal, we will hear from the co-founder later this hour. this is bloomberg. ♪
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shery: we are seeing u.s. futures muted at the open, this is after we saw the rebound in the new york session. despite equities gaining, we have the big falling, but still at an elevated level. let us bring in our next guest, the reason that volatility feels overdone. the cofounder of defiance, etf.
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we continue to see the volatility and the equity in the treasury of markets. all of those frequent pullbacks we have had. the caveat here is stocks have had a shallow selloff. they have been followed by quick rallies. what is this counting on? >> great to see you. i think what it is telling us is that there are a lot of uncertainties in the market and the market reacts to any kind of news that is not part for the coast -- course. there was the omicron, the uncertainty around that and whether it would lead up to a shut down again. it was the fed coming in with a more hawkish tone and talking about tapering. i think inflation is, how transit it is, it has been on the mind of investors. all of that bodes for a red call environment.
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the market pulls back a little bit, a lot of investors will just do this emotionally charged selling. for their -- that further exacerbates it. we need to sleep on it and see that. the economic data looks very good. gdp is strong. it is year-over-year. the job number was disappointing. the unemployment rate is very strong. we do not need the same monetary stimulus we had before. the tapering is not so bad. i do not expect it to be out of control and too quick. there is some good news. haidi: you are buying on the dip. where are you buying? >> great question. i always like the market leaders, the ones who got has here. the apples, microsoft, the semiconductors, the power everything.
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-- those that power everything. they must pan out because the carbon neutral crates, hydrogen, the green metals, look at copper and uranium, electric vehicles. just because washington has such a huge agenda there. look at nfts and that entire octane theme, it is still exciting to me -- that entire theme, it is still exciting to me. haidi: we had a big plunge in bitcoin, tell me more about why it is -- you are making this bet when the potential of withdrawal of liquidity means risk? >> it is important to point out that investors who do not have that high risk tolerance and are not comfortable with the wild swings of prices, it could be a buyer beware type of thing.
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i think currencies are here to stay. it is something that is being adopted by countries like el salvador, eds are starting to come out which democratize access. investors are more comfortable. i think that there are risk assets. if you look at something like nfts, that is a space that is completely different. it is a digital asset but it is based on something like a moment in time, a piece of art, sports memorabilia. especially something special. a physical asset that is unique. i think there is going to be a massive social culture and social revolution whereby nfts are going to have a big part in web 3.0. the metaverse and whatnot. i do not think it is related to the pullbacks we have seen. haidi: it sounds like it is more of a community, more of a membership. rather than absolute returns. >> i think you are going to get the absolute returns.
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what you are seeing now is three q saw about 10 billion nfts changing hands. the most famous nfts is the 5000 days of birthdays. close to 70 million. these are making money. if you look at the nfts, etf out there, you have companies who are invested in the creation, the commercialization of nfts products. they are generating real money from these types of things like atari, selling nfts for their first devices. for lands in the metaverse, won is selling entities of their digital figurines. -- funko is selling digital entities of their figurines. haidi: we will get to you a
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little bit later as well. we will look at global market volatility and inequities. this is bloomberg. ♪
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haidi: we are tracking the font of the supply chain crunch. west international shipping -- u.s. international shipping could go undergo major updates. lawmakers love to address backlogs in the supply chain -- look to address backlogs in the supply chain. the virus and a brexit credited a shortage. drivers in the u.k. have surged 169 percent.
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job postings are up 133%. the world's demand for chips has turned deadly in malaysia. 20 workers in at the micro facilities in the state of johor have died from the virus. the company kept its site running. shery: it is a development that shows a little understood human cost of keeping supply chains running during a pandemic. it has 20 of implications for other chipmakers as the only--as the omicron variant emerges. they all have facilities in malaysia as well. more facilities will be hit as the virus worse is -- worsens in southeast asia. bloomberg terminal users can read more about those stories in our newsletter. the u.s. ftc called the threat
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to buy arm, and is soon to block the $1 million deal. nvidia what control chip designs used by the world's biggest technology companies including makers of smartphone factory equipment and cars. arm's co-founder spoke with bloomberg. >> this is an issue of a very large chip company owning an ip like this company. i have called it the start of the industry. there are over 100 licensees such as apple, amazon, and intel who use our set. it would be very anticompetitive to have it owned by one of these companies. >> good evening, you are in new zealand. do think this deal will go ahead?
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did you ever -- do you think this deal will go ahead? did you think it would ever go ahead? >> that was the hope. now, we have to see. we are trying to block the deal. it is not done yet. there is a danger that nvidia may succeed in taking over arm which would be disastrous for the industry. >> this is about vertical integration within the semiconductor space. combining the design and the manufacture of chips. what is special about the semiconductor space that means it is a bad idea to allow that to happen? and our other industries where vertical integration is accepted -- there are other industries where vertical depression is accepted. >> the semiconductor industry has a all over the world. if nvidia took over arm, it would have the ability and the
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clear incentive to harm their competitors. there are 500 people and you have tesla, google, amazon, microsoft, they all use the arm processor. if one of the licensees were to own the ip, it has the ability to foreclose people from it. >> has this whole bid been a bit of a win-win for nvidia? they capture arm, it gives them a massive competitive advantage. just the fact that they have bid for the company and there is a threat of a going ahead has forced a number of competitors to waste time and money to look at alternatives. they have put our competitors. would you share that idea? >> i agree with that. it would be much worse if the deal actually went through. >> it would be much worse.
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nvidia wants to increase investments in arm's rnd. are there arguments around that that would change her mind at all? >> no. he has all of the money that he needs. the progress that he is making in the data center, amazon has decided to base his latest offering on arm -- based its latest offering on arm's processors. arm is doing extremely well without nvidia. it would be harmful for arm to be taken over by nvidia. it would lose a lot of the licensees in now has. >> can i clarify, do you see this ftc case as being the biggest hurdle this is facing?
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if it gets through this, it is likely to pass through the other hurdles? >> the ftc is the biggest hurdle. the cma has come out very strongly with the same arguments as the ftc. it would give an nvidia the ability and -- it would give nvidia the ability and incentive to harm licensees. there is the european investigation. it has also come out against the deal. i talked to all three of these authorities and they are all opposed to the deal. then there is china who is also opposed. if nvidia were to implicate the ftc, which i hope will not happen, nvidia would still have an uphill struggle to finish this deal. haidi: bloomberg has learned
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that the biden administration is weighing banking sanctions against russia. as press -- as president putin wages were in ukraine. this is bloomberg. when you have xfinity, you have entertainment built in. which is kind of nice. ah, what is happening. binge-watching is in the bag, when you find all your apps, all in one place. find live sports faster just by using your voice... sports on now. touchdown irish! [cheering] that was awesome. and, the hits won't quit, with peacock premium included at no additional cost. all that entertainment built in. xfinity. a way better way to watch.
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haidi: wages as well as some of the household spending numbers as well when it comes to household spending in japan, we saw a follow-up .6%. when it comes to the october number, we have been expecting a little bit worse. we are seeing, halfway percent decline. that is something of improvement. real cash earnings coming in an
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point 7%. -- .7%. for the october labor cash earnings, the number, we are seeing point 2% gain there -- .2% gain. not seeing signs of inflation or real wage inflation. despite what many economies are starting to see around the world. in china we are seeing easing from the top policymakers as well as the indices. the elite policy bears are singling an easing of the property curves and providing more affordable housing this year. this is a downturn and an virus outbreak is pushing down on the economy. the chief china economist at citi pra have you. let us into up with this --
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great to have you. let us set you up with this chart. this is the credit and pulls. we are seeing -- this is the credit impulse. we are seeing it turned down. when it comes to the chinese economy, do the latest measures help turn that around? >> in terms of the crediting house, it has stabilized. at the bottom, and the ways we have seen previous targets and structural and sectorial policies. we would think that china will continue to rise up. the leadership is concerned by the property slowdown in china next year. next year is a political transition year.
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the party would like to stabilize the economy as much as possible. especially putting emphasis on keeping people happy and jobs readily available. haidi: when you take a look at the property sectors, we see gdp on the real property sectors of turning negative. the last time we thought it happened was all the way in 2008. we have supported -- supportive measures on stabilization, the amount of overinvestment in the sector? >> our view is a soft landing view for next year. given the authorities do have a lot of policy options. in fact, as long as they can continue to land developers and arrange funds for developers
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to pay their offshore dollar creditor obligations. the default risk could be at work. how much more stimulus they would like to put into the economy? so that china's property sector will not go into a bubble again. this is the word, delicate valance, -- balance, where authorities will have to have. i think this time is quite different from previous cycles in china's property cycles. i do not think the authority would want to see another bubble again. after a massive stimulus. haidi: what was your read of the meaning? analysts and economists were saying that it was a pro easing
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stance that was different from previous calls on the property sector. >> that is a worry of significant easing from now on word. in q4, multiple analysts would like to ask for more. the pboc has shunned that option for over two months. they have engaged in the broad-based charter. it is a clear signal that china's policy will become for more -- become ready for more easing down the road. we need to see a fit will follow up by cutting mf -- we need to see if it will follow up by cutting mf. if we draw more buyers into china, if they cut interest
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rates as well? haidi: we have seen the latest headlines over u.s. government officials boycotting the beijing olympics. that is coming up in february. given all of these restrictions, i wonder how much of an economic boost it will provide once we hold those games? >> i think given the momentum of the economy. we think of q4, sequential wise, it would be the weakest quarter in terms of year-over-year growth. china's qvc growth could be the lowest. for the market, people only look at the sequential gdp growth. from q4 onward, china's economy should continue to pick up.
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together with the policy easing and we think china should be able to achieve a growth rate next year at around 4.7% year on year. haidi: good to have you with us. thank you. 20 more ahead on china's policy -- plenty more ahead on china's policy easing. as i was telling our guests, the u.s. is now a boycotting the beijing winter olympics in february -- is now boycotting the beijing winter olympics in february. that is opening a new flashpoint between the world's biggest economies. >> the biden administration will not send any representation to the beijing 2022 winter olympics and paralympic games given that there is ongoing genocide and crimes against humanity and other human rights abuses. shery: more with our political
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news director, not going as far as what we have seen it in the past with a full four at -- with a full boycott. >> this is a diplomatic boycott, no administration official or u.s. officials will be attending. we are hearing from the chinese that they were not invited anyway. it is symbolic and as the press secretary said, this is over what the u.s. administration is determining as human rights abuses. against the weaker muslims -- uiger muslims. the u.s. wants the athletes to be able to compete but i want to make a statement about what it sees as of those human rights abuses in china. shery: we are coming up to the u.s. house vote on the bill,
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what kind of effect would we see if it was ultimately passed? >> nancy pelosi today, shortly after we heard from jen psaki about the limbic boycott said they would vote this week on the house bill. it would essentially punish or sanction companies, it would affect the ability of companies to get preference with the federal government. contractors who did business in china. it would have an effect on companies. even though it is expected to pass the clouse -- house, it is inspected how it would do it. it is interesting that nancy pelosi, on the very day that the u.s. senate would boycott the diplomatic boycott of the olympics. they're going ahead with a mode in the house -- vote in the house.
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shery: could the sanctions against russia be symbolic? >> we are hearing that the president may well edified that she decide to tell president -- the president may decide to tell president putin that he would consider that if they did invade ukraine. it would affect banks, it would not go as far as affecting their ability on the swiss payment system. they were not want to hurt the russian people who would need that ability to do their banking on a. . daily basis it could involve -- on a daily basis. it could affect some things. haidi: let us get you to the first word headlines. >> hong kong reported as
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planning to require restaurant diners to have at least one dose of a covid-19 vaccine. china morning post says only toward and under 12 and a medical conditions will be exempt. cases of the omicron variant, forcing returning travelers who spent 21 days in mandatory quarantine. new york city's bill de blasio is calling for the first private sector vaccine mandate. the mayor's office says businesses in the city will be covered by the mandate as of december 27, calling it a preemptive strike. it is not clear if incoming mayor supports the mandate. patrick mchugh has told elaine maxwell -- ghislane maxwell
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traffic underage girls for epstein. he testified that he transferred the money to maxwell -- he testified that epstein transferred the money to maxwell. she was detained in china, 12 months of detention is a long time for anyone to endure. the company remains very worried about the well-being. chinese authorities have said she was sustained on match her legitimate rights are fully guaranteed. global news 24 hours a day, on-air and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: we are gaining ground at the moment.
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being led higher by consumer discretionary stocks and energy stocks. material is the only thing that is under pressure right now. we have the assistant government -- we see that the government plans to tighten. nikkei 225 pushing against the u.s. dollar. we have more risk on sentiment. u.s. futures muted after equities rebounded from the friday selloff. 2022 outlook for the energy market as japan pushes the economy first agenda. this is bloomberg. ♪
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haidi: take a look at the commodity space, we are seeing rebound towards a $70 a barrel eight saudi arabia moved the crude prices a little bit more -- a barrel after saudi arabia moved the crude prices a little bit. shery: we had a forecast for a milder weather so we have the nasdaq shedding, declining about
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40% since october. a movement, sinking to the november, mid-november lowe's. this is as we continue to get a little bit of caution about the global growth outlook. goldman sachs also cut their growth forecast for the world economy. copper unchanged, the supply risk in south america. haidi: it could provide some power price relief. japan's contracts of helped the country stockpile gas. the new prime minister and his economic priorities is bringing out david, prices have risen sharply over the past few months. what is going on in japan? >> japan has been less impacted by the global energy crunch so far. it is largely because of japan's energy contracts that have been secured.
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if this winter is colder than expected, we may see price volatility rising further. haidi: we have seen prime minister -- we have seen the prime minister moving forward a seamless package. how much will -- a stimulus package. how much will it impact? >> around 20 trillion yen. it includes the energy sector. one of the largest budget items is the they $1 million of subsidized investment in battery manufacturing plants in japan. if you look at the global battery industry, japan's domestic manufacturing has fallen behind china and korea. that has been threatened by europe and the u.s. as well.
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this is japan's efforts to strengthen its manufacturing power. there is a ¥38 billion for electric and fuel cells. japan is purchasing subsidy for electric. -- subsidies for electric. if what is offered today -- that is double what is offered today. haidi: what is a good outlook for next year? >> we expect four gigawatts of solar to be added and that is coming from the six gigawatts we expect. that is largely because of the lower volume of products that have been approved under the past options and subsidies. it is worth noting that solar is already the second largest in japan's capacity after gas. if you look at the window sector, we expect 425 megawatts to be added in 2022.
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one third of that capacity will be offshore wind. a meaningful sign that the offshore wind of market is moving towards commercialization. haidi: the latest on japan's energy sector. breaking down -- ground on the latest u.s. factory, electrifying other fleet. we will have more, -- electrifying their fleet, we will have more. this is bloomberg. ♪
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haidi: a quick check out the latest business flash headlines. $15.3 billion merger with creating -- to create a australian gas producer to compete with industrial majors. the group would be among the world's top 20 producers with annual output of up to 120 million barrels of oil. a group led by black rock is investing in natural gas pipelines. it will provide a 49% stake in an entity which holds leasing rights for the network. the plan as part of saudi arabia's efforts to open up to
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foreign investments. hiring several key executives for areas -- for air india. the group is looking at both internal and external candidates for roles including ceo and cfo. it won a bid in october to regain control of the airlines. shery: leota is building its -- toyota is building its fourth u.s. battery factory. it is set to start production in 2025. let us bring in river. we knew this was coming for a while, one new detail we know about this plant? >> toyota announced in october it would be spending about $3.4 billion in building out its
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operations when it comes to batteries in the u.s.. the big unknown was they had announced a plant, we did not know where it was good to be or what it was when to look like. we got more details on that yesterday. will be outside of greensboro -- it will be outside of greensboro, south carolina. toyota will be giving aid from the -- getting aid from the state to build in this specific area. the plant itself has a 1.3 billion dollars initial investment. we are expecting more investment over the coming decade. they're aiming to build capacity at the plant, enough to supply 1.2 million cars worth of batteries. we will see investment going forward. it will start production in 2025, it will start focusing initially on batteries for hybrid cars. then move more towards ev
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towards the end of the decade. shery: what does the investment tell us about the electric vacation strategy here -- electrification strategy here? >> it comes off at the back of a number of announcements from other automakers in the u.s.. this comes a month after president biden's challenge to the auto industry to make half of all vehicles that sell in 2030 zero omissions. -- admissions. -- emissions. toyota's investment is pretty small compared to what we are seeing from other major automakers. we have four and -- ford and others spending on projects including three battery plants in the u.s.. we see a trend of pride to build
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battery capacity in the u.s. batteries cannot be easily transported. automakers across the board are targeting electric sales in the u.s. over the coming decade. that being said, toyota's initial and major focus at this point will be for hybrid cars. it actually focuses that they are powered by batteries and gasoline. toyota is taking a slower stance when it pushes into completely electric cars. shery: thank you. we have a big interview coming up in the auto space. discussing an ev strategy. haidi: honda motor after its engineering unit got a preliminary approval of ibm, australia provisionally
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approving a vaccine treatment. japan's ftc ended its shipping probe. we will have the market open in tokyo, next. this is bloomberg. ♪
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haidi: welcome to daybreak asia. shery: asia's major markets have just open for parade. haidi: investor concerns over omicron ease. china will loosen property curves as they expand economic support in the downturn in the real estate market. exclusive details on evergrande
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's restructuring plan. japan and south korea coming online, take a look at the nikkei, energy and materials stocks. we continue to see it moving towards the seven dollars a barrel level -- $70 a barrel level. the japanese yen holding at about 113 level. trades are right now, leading the losses given the concerns about omicron have eased a little bit. take a look at coffee, it is gaining for the fifth consecutive section -- session. we have seen the korean won going up.
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the coffee is up. the korean won is gaining ground against the u.s. dollar. shery: australia and new zealand trading, we are looking ahead to the decision. lift off for a rate, we are watching that communication in terms of what will be telegraphed. the extension of tapering early next year and when that first rate cut will come through. we have the first report showing resilience in the australian economy and a good fundamental course without the pandemic. new zealand is trading high, the risk of a stranger market when the border does reopen. let us call it trading flat at the moment as that market saw the bounce on the hope that the omicron variant will not be getting economic growth as much as feared.
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haidi: our next guest is looking at japan for high valuations across the major markets. global market strategist joins us from melbourne, we see prices will be an issue against the wall of volatility we have seen over the past couple of weeks. what is it about japan that you like? >> japan is looking around global exposure to equities as we've seen the cycle moved from early recovery into more mixed. it continues to go towards typical sectors and regions of the world that has a typical slice we expect in the ongoing recovery. which ahead into the next year. look at the way that japan feels that story. the relative argument and valuation, we look at the valuations for u.s. and europe. it has point towards the japanese market have a little
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bit more of a pickup for investors, we look at the more attractive values. the earning outlook has always -- also been checking course. the earnings outlook has lagged what we have seen elsewhere. it is like a steady state for japan, and the eurozone. the valuation is better when we look at the japanese outlook. shery: we are building up to an interesting stock year. who are the major winners and losers when it comes to the easy and the fed tightening? where do you see the divergence play out? >> is what to play out in the currencies. the u.s. dollar has been on a strong run this year. the fed is going to be leading the way. they movement around the bank of
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england is also being tempered -- the movement around the bank of england is also being tempered. the near term implications of the follow-up from the economy. if we look at the economic health, the u.s. is leading the way in terms of the tightening of the labor market. the retort coming from the fed -- rhetoric coming from the fed that they will tighten and move on rates earlier than expected. other central banks think that will support the u.s. dollar relative to those countries. we are going to see those influencing the low rate outlook. haidi: we are talking about a six year highs against a basket of currency. you going to see the same weakness in the chinese yuan we continue to see this divergence? what will this mean for other currencies around asia that are relying heavily on where the chinese yuan goes? >> the separation we have seen,
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to make sure that in china does indicate that the officials and others are focused on the stabilization of the economy. it is the huge support of credit. a neutral view given that we are given some liquidity that is expiring elsewhere. and reinforces that signal that they are looking at trying to stabilize the outlook in the economy. to still have the zero covert approach to the economy which could restrain growth in the near-term. we would expect that to play out within the currencies as well. the difference may be is that we see the recovery around the world strengthen and we look at asia and how it reacts to the omicron variant this where -- this time compared to the delta variant. to look at asian and assets for the reopening story and a bit of valuation when it comes through their relative to developed markets. haidi: how does the variant
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affect your portfolio outlook? is it change what you are doing with your assets or is it another downside risk -- is it changing what you are doing with your assets or is it another downside risk? >> it does represent a greater downside risk to the outlook. the trouble is the information to make a sustained view on how this will play out. the markets are going to remain choppy for the next couple of weeks. the variant versus vaccine, it is also covering concerns about heightened valuations in any part of the world. we are looking at the fed and tightening rates, that will head out to more volatility. fundamentally, if you look at how the global economy is going and the improvements in to supply chain, all that does support the view that the economy is getting better.
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the earnings outlook is positive and we should be focusing on risk assets. haidi: do not miss the bigger interview later, morningstar ceo joins us, exclusively to discuss global market volatility. the outlook for indian equities. shery: we do have breaking news at the moment, intel will be listing shares in mobileye unit. this is coming from the dow jones. they are planning to list shares , driving car units. this is a cording to the dow jones, the latest move by the ceo -- this is according to the dow jones, the latest move by the ceo is to announce the move.
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north of $50 billion as soon as this week. let us get the first word headlines. >> the u.s. and european allies are said to be weighing financial sanctions on russia if president vladimir putin orders about the invasion of ukraine. they could target some of russia's biggest banks and the direct investment fund. president biden may spell out the potential sanctions when he speaks with putin later tuesday. u.s. government officials will boycott the beijing winter olympics in could february -- in february. jen psaki says the decision is over what she calls ongoing genocide and crimes against humanity. athletes will be free to compete, even as the administrator officials stay home in a symbolic boycott. j.p. morgan chase executive director told the board that
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jeffrey epstein wired tens of millions of dollars to the -- to a british socialite. they say that maxwell trafficked under age girls to epstein. he said epstein sold millions of dollars of stocks and transfer the money to maxwell. myanmar has reduced aung san suu kyi's jail term to two years. she was initially sentenced to four years in jail but she will now serve the sentence at her current location thus avoiding present time. her conviction for this has been criticized by western governments. global news 24 hours a day, on-air and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. haidi: we will be seeking --
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speaking to a company about their plans in asia and financial services in the region. there ceo joins us later this hour -- their ceo joins us later this hour. rrr signaling easing curves. we discuss the latest move, next. this is bloomberg. ♪
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shery: we are getting breaking news at the moment, since my electronics will be replacing its three ceos. it will be combining mobile and consumer electronics. we have heard from media reports that they were thinking of replacing their three ceos. we are getting a little bit of
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confirmation that samsung will in fact be replacing their ceos. they will be combining their mobile and consumer electronic divisions. this is around the time of the year where we see some of those changes for samsung. this is of course, coming at a time when we are now seeing samsung seeing the boost from the semiconductor shortage globally. also coming at a time when we are now seeing that mobile phone business and focus as well. haidi: when it comes to personnel changes, that is driving the big move we are seeing in banking. that is rising over 5%. that is a month after we saw alibaba arise. alibaba rising over 10%. that is in june of 2017 after a six-day plunge. it was at the cheapest ever
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after that for hundred billion dollar wipeout from the share price -- that $500 billion wipeout from the share price. that is clearly one of the drivers that is helping softbank shares recover. it is extending that six-day slump on the first day of this week. dropping as much as 9% on tokyo -- in tokyo on monday. delisting dd from the u.s. and the ftc suing to block the sale of arm and nvidia as well. quite a few headwinds, on the up today. shery: we have chinese adrs getting that boost from policy may to boost the economy. the authorities are giving a double dose of growth boosting policy medicine for the economy. we are talking about cutting through rrr and easing property curves. we have more details on how --
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on the ship the evergrande's restructure could take -- on the shape that evergrande's restructure could take. moving in tandem when it comes to supporting the economy. >> when two such powerful institutions move together at the same time, you know they are on a mission and they have a message to send. it is all about the weakness in the housing market. the liquidity crisis in real estate is really putting a big weight on the economy. i love this chart. if you look at the white line, 4.9 percent on gdp, real estate growth and construction growth, the yellow and blue lines. below zero for the first time after the pandemic. they thought out to rein in a speculative market. -- they sought out to rein in
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a speculative market. they may have gone too far, that is why the rrr rate was lowered. this is the required reserve ratios for china's banks. the yellow line is for the big banks, cut to 12%, the first move since june. it is what many people are saying, even though that the pboc, we are not going to have a series of ras of rate cuts. it is going to be 50-100 basis points. the economy is expected to slow. the security, the chinese newspaper says that the low prime rate is one to be cut. it has not been cut since april of last year, since the pandemic was starting. they want to support housing, not push so hard against speculation.
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it is a powerful message. they are trying to get something done. trying to keep the economy from sinking further. haidi: it seems like we are getting close to seeing something done in terms of evergrande. we are learning about what is going to be included in this long anticipated that restructuring. -- debt restructuring. >> we are moving into a different phase of the debt crisis for evergrande. we heard from sources that evergrande is doing a holistic restructure of its offshore debts. those issued both by evergrande and those linked to its onshore units, they are reaching a journey bond. it also intends to include private placement bonds, including this jumbo bond which is a debt that was guaranteed by evergrande.
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that is significant because the jumbo bond has posed the single busiest -- biggest threat to evergrande. investors have not had clarity on what is were to happen with that negotiation. we are getting a clearer picture of how evergrande actually and tends to approach what could be one of the biggest restructuring in china. haidi: rebecca alongside our policy editor, kathleen hays. a little bit more on the breaking news, samsung electronic will be replacing all of its business division heads. there are three co-ceos, they will be replaced. shery: we know that all of the business division heads will be replaced. this is coming at a time when samsung will be combining their mobile and consumer electronic
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divisions as well. we are seeing the stock seeing it's worse they -- it's worst days is november 30 -- day since november 30. this is bloomberg. ♪
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>> the company has a new opportunity and hope to become more transparent. bloomberg sat down with the ceo to address some of the positions made by the predecessor and figure out what the future looks like. >> you think about a in the last 20 years, -- you think about abi in the last 20 years, we have a bit of strategy that was involving cost management, and organic growth.
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that is not an abi led strategy. abi was an agent as other countries joined. after the integration, we needed technology that would go in organic. we have had several good initiatives inside of the company in terms of organic. this evolution is for more inorganic land into organic land. >> you have to address some of the acquisitions that were made by your predecessor. there was a huge debt load attached to that. a drag on earnings attached to that. >> we reflect upon this past, there are three big learnings. we have more hit than a misses,
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they had some misses on the way. >> was cb miller amos? -- a miss? >> great company, great people. there are three big learnings. one is really that while we were consolidating, we kept our eyes on the ball. the industry could not realize its full potential. there is much more to take out of this than we are actually taking today. we can grow death should investors expect that. -- we can grow more should investors expect that. we are trying to move from leaders into being the category growth standard. this should -- they should expect digitizing at high
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speeds. today, we already have our sales coming through digital models. >> you are the leader in the beer industry. we have seen trends shift a little bit prior to the pandemic. people moving to wine, spirits, hearts ulcer. how much does your company plan to move into those spaces at all? >> if you look at long-term, 10 years, there was a period from 2010-2015 where beer was slowing down and other categories were growing. we put together 100 countries. who can see very clearly that beer is gaining. the growth is led by emerging markets. even traditional, develop
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markets, -- developed markets are growing. it is coming from beer, pure beer, and the emergence of new combinations. people call this this beyond beer, they are ready to drink beverage. they are instrumental to the beer industry. it comes from acacias and consumers that drink wine and spirits -- it comes from situations and consumers that drink wine and spirits. it is a capability to deliver high-quality with convenient packaging. we can capture a lot of this realm. >> how much is your organic growth strategy focused on the reopening of bar and restaurants, and stadiums. were people would -- where people would consume beer. >> it is very important.
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they have suffered a lot during the pandemic. taking your programs to support the reopening, the interesting thing about beer is that it kept staying reliable. the beer is selling. during the pandemic there was a feeling of normalcy that beer could bring two people -- to people. you could buy the brands that you love and have some normalcy at home. very reliable and consistent. even during the pandemic. >> coming up, we speak to a fintech platform about his latest acquisition in indonesia and what is next for expansion
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plans in the region. what he thinks the future holds for asian digital banking spaces. this is bloomberg. ♪
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♪ >> these are the first word headlines. china policymakers have moved to expand the economy. a monday meeting led by the president were encouraged on real estate. most banks will change their yield requirement ratio by half a point next week. bloomberg has been told that
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china evergrande group is going under a restructuring. it would also cover public bones. -- bonds. the formal restructuring process has yet to begin. details could still change. hong kong is reportedly responding to restaurant -- require restaurant diners to have at least one dose of the vaccine. those under 12 and with medical conditions will be exempt. cases of the omicron variant pose a high risk for returning travelers. bloomberg news says it will continue to do all that it can to help her after she was
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detained in china. 12 months of detention is a long time for anyone to endure. the country remains worried about her well-being. she was detained on suspicion of national security violations. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: we lab is buying a controlling stake in a commercial bank in indonesia. this is one of asia's most underserved banking sectors. they will take a majority stake subject to approval. the company has raised $240 million to fund the acquisition and other acquisitions.
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thank you so much for your time today. why indonesia and wife specifically this bank? >> good to be back in your life studio. this is a great banking opportunity for us. many of these are tech savvy young adults. i think there are a lot of opportunities we can do. shery: the hong kong market is very different. what gives you an edge in indonesia? >> we are quite fortunate that they issued that.
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it is quite different. wheaton actually expand this. we enter into h-mart -- multiple market opportunities. we already have indonesian business. if you look at the market, they have a couple of digital banks and existing banks. most of them have a few hundred thousand. if you look at the whole population, there are still a lot of opportunities. shary: in southeast asia specifically? >> i think there is a lot more
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opportunity for digital banking. a lot of these markets are talking about these markets. many of them are not open for business yet. if we can leverage this opportunity and extended to southeast asia and move faster than everyone else. shery: anything you can tell us about a potential idea -- ipo? >> we have been looking at this for a while now. i think it would make a lot of sense. it is our long-term mission. >> would be in hong kong?
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>> we are keeping an open mind. the market is very dynamic. haidi: you have any growth targets even how quickly you have been established? >> the opportunity for a digital bank. only 55% of the banking market. you look at the hong kong example.
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both of the large banks are consulting. shery: you don't expect any regulatory risks in indonesia? >> that is definitely something we were looking at. . regulators are pretty determined. this becomes a more important
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subject. how do we get the right talent? and new opportunities? haidi: joining us in hong kong. let's look at the markets. we are looking to see how they telegraphed growth expectations. we will look for any news story.
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the nikkei trading higher. u.s. officials boycotting beijing for the olympics. we talk about the politics and diplomacy surrounding the games. this is bloomberg.
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♪ haidi: u.s. government officials will boycott the beijing winter olympics over concerns about crimes against humanity and other human rights abuses. our next guest has been focused on the olympics. this stopped short of a full boycott. is this the kind of fine balancing act where they can diplomatic make their point? >> that is exactly right. by doing a diplomatic boycott, the idea is to prevent china from this. using these big sports mega events to launder their
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representation on the world stage. it is even a chance to do that. shining a light and human rights abuses in china right now. haidi: they have chosen this location. they are standing up against the leadership in china. >> you are exactly right. it is amazing that this wga took a stance like that. think about the rest of the morality on the terrain of
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sports across the world. it is a sharp contrast. what the international olympic committee has decided to do. they have chosen to side with the chinese authorities. they had a 30 minute phone conversation. they said she was just fine. anyone who thought about that for a couple of moments could realize that just because you had a pleasant 30 minute conversation with someone does not mean they are doing on. they gate credit. we are living in what might be the athlete empowerment era right now. they take a sharply political stand. they send a message to all those people who might be going to
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beijing to compete. shery: what does a diplomatic boycott really mean for beijing? could this lead to more countries joining? >> that is the next big question . that would not surprise me in the least. this will ramp up the verbal volleys that the come -- countries have already been exchanging ahead of the olympics. there is a lot more at stake than the liv-ex themselves. they have made china into a political punching bag. that could be really dangerous.
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hopefully this diplomatic boycott will stay in the realm of sports is not escalate. shery: how will international sports organizations walk that fine line between trying to do business in a lucrative market and at the same time listening to their athletes and keeping their social consciousness to oppose human rights? >> it is a fine line. it is very difficult to walk that line rated i would reframe the thinking just a little bit. these organizations of all manner of wonderful ideas. think about the olympic charter. it talks about the dignity of humanity. it even mentions human rights and the context of sports.
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if making money trumps that, that is what is at stake here. are these organizations actually going to stand by the big ideas? or are they going to take the money and run? so far what we are saying with the international olympic committee as they are more than happy to take the money and run. haidi: to play devils advocate, there are obviously issues with a lot of countries and cities that play host to these major sporting events. china would say the u.s. does not have a great track record with these things. a lot of human rights concerns with the world. can these events be used to do that? to encourage countries to do better? >> that is a really important point. i'm coming to you from the u.s.. we have a humanitarian crisis in
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plain sight in the form of homelessness up and down the west coast. we have guantanamo they still open and there are people without charges. the u.s. does not have a pristine human rights record. the difference according to certain people is what we are seeing right now is crimes against humanity playing out during the actual olympic games. this can be a lever for making change. people are talking about how great it is for democracy. they say they need the evidence.
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they say the olympics will help them. >> it is always great having you. you can watch us live. check it out. this is bloomberg.
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♪ haidi: a quick check of the latest business flash headlines. we are getting the latest details for this program in india. they are looking for anchor investors. it is powered by apple maps and amazon boys. they are going to have an idea -- ipo. the group will purchase a stake in aramco gas pipelines. shareholders are set to improve a merger.
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they say it undervalues the business. shery: take a look at the commodities space. it is around $70 a barrel. we had saudi arabia boosting output. we are now seeing forecasts for milder weather. this as we continue to see growth.
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haidi: they are in the second phase of a massive project. they want to hit carbon zero by 2060. that could provide us with a lens of the chinese energy future. >> welcome to the world's biggest solar and hydroelectric plants. this project covers about 600 square kilometers. it has the capacity to generate electricity needed to power new zealand. it combines solar wind and hydropower.
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behind me is this dam. it took 10 years to construct. it works in conjunction with the solar part. >> solar power is intermittent and volatile. the process is changing. >> the facility is a key part to the president pledged to reach peaked missions -- pico missions by 2030. most of these are located in remote areas like this one. in july, the provinces powered solely by when. >> we are connected to eastern
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places. they are used to clean electricity. >> they deliver all that power from the country's interior. hundreds of thousands of ultrahigh voltage. they have been raised over 30 years. china is working hard to reach zero carbon goals. to fulfill the pledges made at the climate conference in glasgow. shery: we will be watching real estate developers in hong kong when the markets open in about an hour. especially when it comes to the restructuring of evergrande. what it might entail. not to mention we have these
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latest moves that perhaps .2 property sector easing. haidi: kaiser group is the other one we are always watching. they failed to deliver wages. we heard overnight that their creditors are trying to avoid a $400 million default. also hearing lots of shifts. shifts in easing. really hitting economic growth. broader stabilization across the markets. it does feel like potentially some of the moves will help. shery: there seems to be a
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little bit of fine-tuning when it comes to this. coming up, we will get some insight on the china debt crisis. this is bloomberg. ♪
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♪ >> good morning. it is 9:00 a.m. in beijing, hong kong. the opening of trade on the chinese mainland. >> beijing singles -- signals a shifts. the stock market enjoying an upbeat mood. reduced fears of an omicron variant.


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