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tv   Bloomberg Daybreak Asia  Bloomberg  December 16, 2020 6:00pm-8:00pm EST

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anchor: good morning. we are counting down to asia's major market open. anchor: welcome to daybreak: asia. as fed jaygold rise powell says the case for new physical action in the u.s. is strong. he also says he will not raise rates until inflation is back on track. anchor: the pfizer vaccine will
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allow -- allergic reaction reported in alaska. as follows a similar incident in the u.k.. deliveries are also facing problems. it highlights enormous impact of covid-19 with economies and industries struggling to survive. the national labor organization says, more than 80 million jobs have gone in asia alone. haidi: let's get straight to the market action. the start of trade in sydney, adding 1/10 of 1% on the midyear budget update from the government. 3.6 say they are injecting percent growth for australia year. they expect a steeper curve on improving data. the tenure yield rising for the first session. the kiwi yield, 10 year yields up about six basis points. treasuries, in the fed
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leaving its bond buying plan intact. the markets digest the latest gdp reports from new zealand. -- 14% forarterly the third quarter. we do have a busy day with other central banks in the philippines, indonesia, and taiwan likely to stand at. switching out the board to check in on what's going on elsewhere. heading into tokyo open, you have the yen trading near a five-week high. a little change this morning after we saw the benchmark just at higher with u.s. stimulus talks in view. the nasdaq 100 rising to a fresh record. gains, verysome slightly to the upside. gold steady. holding that rebound that we saw, powell affirming the fed's commitment to support the economy. i just want to highlight. nothing we are learning is going to change the positive risk by
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-- by -- buy. haidi: the federal reserve is saying that course with its plan. the chair says he will maintain the message until he sees progress in the economy. he was speaking after the final meeting of the year. >> substantial further progress means what it says. that means we will be looking for employment to be substantial closer to its maximum level, and inflation to be substantially closer to its 2% longer run goal until we start making adjustments to our purchases. haidi: let's discuss the fed comments. the director of columbia university's mba program and economic policy management, she also spent 20 years at the new york fed seeing the implementation of facilities. kathleen hays. patricia, great to have you with us.
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i will start with you. with a sense in this meeting was really jay powell recognizing the limitations of what they can do, saying you know what this is time for fiscal to do the heavy lifting now? guest: indirectly, yes. i think that is right. of course chair powell was careful, extremely careful in the way that he said that. but he spent a lot of time -- he was challenged, twice i think with a question about why not more monetary policy now if the recovery is slowing? and it is. surprisinglys detailed and comprehensive. i shouldn't say surprising, but it was detailed and comprehensive. creditcally noted, the condition sensitive sectors of the u.s. have done very well. goods consumption, consumer household purchases of goods are
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where they were before the pandemic. housing is well above where it was before the pandemic. the parts of the economy that are struggling particularly the service sector, the service sector is not. the state and local government sector is not. those are the places that are being heavily impacted directly by covid and the virus, and it does not really matter how negative your interest rates are, or how many 10 year treasuries you by. those sectors are not going to recover until we get past this health crisis. i thought some of the statistics he gave, particularly about job losses, where they were. in state and local governments. i found that a very interesting comment. course onecause of of the important pieces in a
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fiscal policy packages how much support is going to be provided in the united states by the federal government through state and local governments. haidi: the other thing is. is there an understanding that the fed really does not need to do much more? doesn't need to depress rates more to -- i some estimates, this is the easiest monetary conditions we have ever seen. guest: they can. other thing that the chair noted is just how far they are from their long-run goals. not only that, their economic projections that were released at the same time as the statement showed that they really don't think they are going to hit their goals for a couple of years. meeting maximum employment and inflation preferably above 2%. that is a long time to be very accommodated, but that is basically the horizon that we are talking about here.
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uncertainnows how everyone's macroeconomic forecasts can be, particularly in the sort of an environment. nonetheless it was quite an admission of just how easy monetary policy is going to be, for how long, it is a little hard to see how they could do a lot more. maybe you can get a few more basic points on the tenure down, but it is not clear that is going to help. >> jay powell and the fed but a lot of -- here is what we did. you a definite statement. we are not going to start tapering, not going to change anything until we are close to our goals. i think a lot of people say, so what? if they need to do more that really is not much. did jay powell in his heart and heart, the unsaid statement,
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yeah i know that it worries me. guest: i think he made it extremely clear in the press conference that he is very worried. we should all be worried, because absent fiscal action in the next few days, the very near term outlook for the u.s. economy is quite negative. i'm worried. i think everybody should be worried about it. policy tools are not geared toward the parts of the economy that really need support from the government. big -- it didn't move markets, the fact that the fed extended their temporary dollar swap. they fit in place for a while now. buterday, the group of 30 out a report warning about a solvency crisis next year, because there is going to be corporate layoffs around the world, job destroying forces.
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governments have to start planning now. you think jay powell is somehow seeing that -- keep the swap lines in place because this is not over, and the international aspect is important to? guest: i think that's possible. the swap facilities, there is always a confidence boosting internationally, globally policy tool. and keep to renew them them longer perhaps than they think they are going to need them. your interpretation is right. i think it's insurance they really want to have right now. the solvency issue in the corporate world, and by the way powell did address this in the press conference. in the united states, the leverage in the corporate sector is incredibly high. it's incredibly high all around the world. this crisis has made leverage go up. all of these wonderful lending programs that central banks and governments are doing, that is going to push leverage up.
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as long as rates are low, that is affordable. the corporate sector in places like united states where interest rates are incredibly low is healthy. the rest of the world? small amount of -- smoke economies and emerging economies may not have that luxury. the possibility for some really serious, hard court deleveraging, defaults, serious solvency problems in nonfinancial corporate's the world in the coming year. i think that's a big risk. i think the g 30 report, the group of 30 was actually well-timed. that fiscaloncerned stimulus is what is badly needed? when you look at at what is going on in washington right now, what is on the table. does it look like enough? does it look like a package that can offer that short-term risk you see of an economy getting very weak in the first quarter
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of next year? maybe even something negative? guest: based on my understanding, this is still being negotiated so time will tell. individuals is very welcome. it really is individuals, particularly at the bottom of the income distribution, many of them working in the service industry that have been incredibly hard in every country. that includes the united states. thatsomewhat concerned there will be very limited support for state and local governments, which i noted something the chairman highlighted. not to mention how many jobs they have already lost. the state and local government sector has shed 13% of the job loss in the united states, have been governments lend people off. that will get worse because the deficits of state and local governments in the united aides, their finances are a mess.
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because they are bearing the brunt of a lot of the costs of covid. some sort of support from the federal government seems very necessary. that is a very contentious issue as far as i can determine in congress. but i think some kind of support will be needed to avoid a fiscal disaster there, rather than at the federal level. haidi: so great to have you with us. we appreciate your time. columbiator of university's mba program and policy management. you can read more about the u.s. economic outlook, limbic survivors -- the mobile in the blooper anywhere app. you are watching daybreak: asia. let's get you the first word headlines with karina mitchell. karina: thank you so much. last-ditch budget talks may be headed to a conclusion, with brussels saying the final middle
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hurdle to be cleared. optimism growing after the two sides agreed to extend negotiations. downing street says a no deal remains the most likely outcome, and boris johnson insists that u.k. has a natural right to control its own waters. the eu says it is possible the gap can be bridged. brexit uncertainty is worsening holdups at channel ports, with more than 60,000 trucks reported to be waiting to cross. wednesday was already a red day in terms of disruption at the ports. authorities say it became the most difficult day so far this month as talks right on in brussels. police have set up marking areas as far as 40 kilometers to ease the pressure. iran has entered the nuclear debate adding his support to finding a diplomatic breakthrough with the u.s.. messagece is seen as a to hard-liners in toronto not to undermine potential nuclear talks with the biden administration. his backing echo comments
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earlier this week five the president, although he warned iran not to trust the enemy. state media reports in china say it's lunar capital has returned to earth, carried the first moon rocks and for decades. it blasted off at the end of last month to elect the first substantial lunar material since the 70's. china is only the third space agency to bring moon rocks back after nasa and the soviet. it is named after the ancient chinese goddess of the moon. 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 am karina mitchell, this is rembert. -- this is bloomberg. talk about the devastating impact of the pandemic on jobs and impound -- income in asia. known severefirst allergic reaction to pfizer's shot in the u.s.. what that means for the nation's vaccine program with millions.
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this is bloomberg. ♪ when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $400 a year with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store. >> a smaller christmas is going
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to be a safer christmas, and a shorter christmas is a safer christmas. say three households can meet on five days, i want to stress that these are maximums, not targets to aim for. week, the first vaccine will be authorized, so that vaccinations can start immediately. more will follow in the new year. >> we should exercise extreme caution in a way we celebrate christmas. we can celebrate, we have to be extremely cautious in the way we behave. johnson sounding
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caution over the holiday season. the evening of those christmas covid curves in that u.k. coming as the virus continues to search elsewhere. germany has the biggest rise in debt since the pandemic started, while here in the u.s., places in california shatter another record. we are seeing some more to cuts when it comes to vaccine rollout across the u.s.. our health care reporter is on the line. just give us the state of things across the united states as we continue to see the surgeon in infection.urge karina: here in the u.s. cases continue to rise especially in california as you mentioned. >> the state reported 53,000 new cases which exceeds the prior daily weichert by almost 18,000. deaths also set a new high at 293.
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hospitalizations jumped 4.3% to a record 15,000 886. the crisis here is only worsening. haidi: what about the vaccine rollout? heard fromy we federal officials who are leading the federal government's effort to roll out vaccine across the country. hiccups inout a few the effort. there were four trays of vials containing pfizer's vaccine that had to be shipped back to the manufacturer because they were actually too cold. we have been hearing concern about keeping these vaccines cold enough, but these actually got too cold, had to go back to the manufacturer to study them and see if they can reach the temperatures and if they are ok to use when they get this cold. that was one. the u.s. reported its first known case of a serious allergic
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reaction, similar to the ones we have been hearing about in the u.k.. that was in alaska where a health care worker with no known history of allergic reactions had an importunate event. she was hospitalized. stayed overnight, now is in stable condition. haidi: that would not help with confidence, right? there was a lot of questions for why president trump has been quiet when it comes to this crowning achievement. now the media reporting that vice president pence plans to get the covid shot on camera friday morning. president-elect joe biden expected to get the covid shot early next week. perhaps this might help to how people are reacting to the vaccine. guest: i think it is important to remember that we had known there was going to be hiccups. this is an enormous operation that reaches every corner of the
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country, even the territories far from the mainland. it's expected that there will be some problems. however i think it is important for people to know that there will be some side effects. not everybody experiences them, but they do happen, and it is something we have to pay attention to as we continue to roll out vaccine across the country. haidi: our health care reporter. coming up next, the danger ahead. blackstone's warning. we have an exclusive interview with their global head of credit. this is bloomberg. ♪
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haidi: blackstone global head of credit says 2021 will continue the upswing or markets, but warns chasing yields. it is dangerous.
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exclusively in an interview with bloomberg. guest: the underlying earnings in businesses are improving. the economy will improve through 2021. the main driver here which was liquidity, that is not going to change. all of the news today with the fed, the fiscal stimulus, all of those things will be supportive of credit markets i believe in 2021. >> if we were to look at an index, what kind of return would you anticipate in 20 when he won? guest: that's a little more challenging. as opposed to the beginning of the year, today triple bees are yielding in the two percentage range on average. you can't be too wrong on rates. treasury rates can't go up too spendingyou can have to speak of. i think returns will be relatively low in
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investment-grade credit for 22 anyone. guest: what about the noninvestment grade credit. you have been investing in mostly performing stuff, right? senior secured loans. both in private and public, correct? guest: that's correct. the market we are in today -- go back to my original comment. we are driven by liquidity today, the markets are ahead of the economy. we have seen great recovery in the markets, we have not yet seen that recovery in employment and things like that in the economy. we will see that in 20 when he 21. -- 20 that is going to be the driver of credit, so you want to make the decisions. taking high-risk positions today is more dangerous, because those companies if they have not recovered by now, they are going whereasallenged in 2021
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performance businesses will see that coverage in their cash flow. thing to be risk-averse, it's another thing to be credit averse. there was a palpable sense of fear back in april and may that leveraged loans would underperform public credit because they were not getting a fed bailout. did those fears persist? do you sense reluctance on the part of investors to go back into those assets? guest: i think it's quite the opposite. i think what happened in 2024 2020 fourloans -- leveraged loans -- people were concerned about covenants. they performed quite well. they will end up at a return of two and a half percent to three and a half percent. even the risk that people saw in clo's which are really just a way to invest in the market have not turned out to be true
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either. aaa trading at a guild out below is where they came in the year. 95% of the equities in clo's arcane distributions. i think it will be the 10th consecutive years with clo equities will have a double digit cash return. i think in both cases, with loans and clo's, this really disjointed market that we saw in 2020 has proven resilient and stable investments. haidi: the blackstone global head of credit speaking exclusively with our colleague. don't miss an exclusive interview ahead. private equity asia has more than $20 billion of assets under management. we speak with the ceo later. australia's agriculture minister tells us he hopes china will pick up the phone to resolve the trade standoff after the dispute has been taken to
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the wto. we will hear from him next. this is bloomberg. ♪
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haidi: here is what new york city looks like right now. that is the world trade center, you see snow starting to come down. the expectation is for about a foot of snow. this would be the first major snow in new york city in several years. this coming at a time where we continue to struggle with the covid-19 pandemic. taking a look at the brooklyn bridge as well. cars still moving, but he could get tricky later on. bill de blasio said new york city will still have a plan to ensure the vaccine continues to
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be delivered at this time, as we continue to get that snowstorm, which could be the most severe and about 10 years. this is not just mere city. we are talking about the eastern u.s., could see more than 51 million people affected. let's turn to karina mitchell for the first word headlines. karina: gold rebounded as fed chair jay powell said the case for fiscal action was strong, and that he would not raise rates until inflation is back on track. in the final meeting of the year, the fed strengthens its commitment to support, until it sees progress in employment and prices. he added, that several months will be challenging. the vaccine rollout in the u.s. has hit its first snag with an allergic reaction reported in alaska and problems with delivery. a health care worker with no history of allergies experiencing flushing and shortness of breath 10 minutes after taking the pfizer vaccine.
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meantime, around 4000 shots missed their delivery targets because of the temperatures needed to transport the vaccine. the u.s. treasury is branding switzerland a currently -- currency medical at her -- currency manipulator. switzerland hit back saying it remains willing to intervene more strongly to maintain currency stability. yet thomas also criticized, although china only remains on the u.s. watchlist. volatility wagers has emerged as one of the largest investors in than $600fter by more million of cryptocurrencies in conjunction with asset management. eric peters says he intends to tap into the growing interest in crypto about institutional investors, and will take holdings in bitcoin and either to $1 billion early next year. global news 24 hours a day, on
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air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. mitchell, this is bloomberg. australia's agriculture minister has concerns that his government has filed a complaint with the wto over china's decision to impose hefty tariffs on poly exports. he told us he hopes beijing will pick up the phone to resolve the dispute, but in the meantime altria has plenty of other options. he spoke us a little bit earlier. [indiscernible] -- demand for the high quality which we produce. we will continue to make sure we build on the other trade agreements. in the campus countries we have market access to. india has reduced some
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of its protocols, because they say the demand -- [indiscernible] price and will look to continue to diversify our markets outside of china, and that is why we continue to build on the trade agreements. [indiscernible] the reality is there is not one country or either a combination of countries that can make up from a lack of demand from china. what other strategies are there other than trying to diversified that you can use to support agriculture prices? at the same time we are seeing restocking after the drought. guest: we are we are seeing six processes that have been suspended. we still -- [indiscernible] demand is still there.
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it's the best quality in the world. our producers will make some decisions in the new year. they may diversify away from bali as well. [indiscernible] additionalned an 150,000 tons to saudi arabia. there are significant opportunities for our farms to diversify. this is a matter of principle. this is why australia thinks we are -- actions of the chinese government imposing these tariffs. as a matter of principle, under wto rules. it takes time. get ourill not sovereignty to any other nation.
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we believe this is discriminatory action, there is mounting evidence that china is imposing on poly. mandate placedhe on australia around sovereign actions we took. we are always watching for the opportunity for china to rectify. outncourage them to reach as we have tried to reach out. we will never turn our back, but we need them to engage with us. [indiscernible] haidi: do you think it was foolish for australia to stick its neck out on principles to call for the coronavirus inquiry? obviously this has come back to hurt your constituency, to hurt australian farmers. one producers, wineries and the like. guest: it has hurt millions of people.
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-- [indiscernible] about learning from these than debit. about how we can do things better. community as a globe [indiscernible] economies in our communities are intertwined. it's important and but we have a demands -- there other that china has asked on australia, around our sovereignty, around foreign soils. around our ability to decide foreign investment. those are things we will never unrelenting on. those are things that hundreds of thousands of australians have died defending, and we will continue to make sure our values and principles are uphold. we respect the sovereignty of other nations, as we respect hours to be returned. haidi: speaking to us a little
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earlier. japan and south korea open in less than half an hour. let's turn for what to watch. seeing asian stocks could push ahead to fresh highs yet again. in sydney, higher for a second state day. banks providing a list this morning. b of a saint -- yields pushing higher. capital forecasting the index 2021 hit fresh highs in with recovery. when we see indonesia, the philippines, taiwan central banks deliver, we are expecting them to stand pat on policy. let's put the page. stocks up, arms down. -- bonds down. this after the fed kept its bond buying plant intact.
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we saw that gdp report come through with a bounce of about 14% on quarterly basis. treasury futures, little changed. flag but we were told earlier. he does not see backup and yields in the near term, and he flags that the risk to the bond market is been the fed starts talking about tapering there buying -- bond buying. haidi: coming up next, the international labor organization said covid has wiped out more than 18 million jobs in asia. we discuss the employment outlook with the regional head of economic and social analysis. this is bloomberg. ♪
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haidi: the international labor organization says covid-19 has wiped out at least 81 million jobs across the asia-pacific. women, young people, and those working in the informal economy have been hit hardest. we are joineds, from bangkok by sarah elder. great to have you with us. give us a sense of what is going on across asia-pacific, and whether the government support in terms of fiscal measures and monetary policy have helped at all. guest: thank you so much for having me.
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unfortunately does not show a very healthy picture for the region. it is not surprising. but for the first time, we have put some numbers to it. as you mentioned, we have been as a result of the crisis, the region as a whole has lost 81 million jobs in 2020. the big question is what will happen in 2021. the main impact of the crisis has been on working hours. this is something that sets this crisis apart from previous ones. the various lockdown measures we have seen in some sectors like tourism, manufacture. having to resort to severe reduction in working hours. across the region we have seen
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working hours reduced by 15% in the second quarter, over the last quarter of 2020. this is what sets this crisis apart, because with working our losses, of course comes very severe labor income losses. -- had asked if governments how governments are responding, and whether governments are doing enough. i would say yes, governments are doing quite a lot. they have pushed out stimulus the $11 that reach in trillion, which is the significant effort. the trouble here is is an uneven effort. 88% of that is going towards the advanced economy, where they do have the money. the question is then, what
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happens to the developing countries? we are already being left behind. haidi: tell us about the vulnerabilities more specific to asia, because we know them more than half of the world's informal workers are actually in asia. we continue to see these inequalities, whether among countries, or, or young people against older adults. we continue to see this exasperated. guest: exactly. it's the issue of an formality that really makes the region so vulnerable. when you have somebody informal economy, they are the first to lose income, the first to lose work. but also the first to bounce back, under very severe depressed labor incomes. this is where we estimate, why we estimate working poverty to increase between 22 and 25 million this year.
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vulnerabilities in women and young people. this is not something unique to this crisis. it is something we have seen in many crisis before. women are the first to lose their jobs. it is so unfortunate, but we are seeing it in this crisis, across all of the countries. women are the first to lose work, and at they lose work, they don't become unemployed. inactivity, which is a problem because it is more difficult to reactivate the person to become inactive that unemployed. women moving to -- they will back to the households. what happens is the longer they stay there, the longer they lose
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motivation. the same situation happens for young persons, where we see them lose their jobs at the scale of whichre than adults, means they enter the labor market through periods of unemployment, through periods of extended inactivity. which means they are losing capital in these long terms carrying. haidi: we are looking ahead to see if there is transformative, permanent changes to labor force structure to workplace policy on the other cited this pandemic, given just how fractured this year has been or many workplaces. i am wondering if there is any positive takeaways that can come out of this? guest: there has been some positive takeaways. theink first of all,
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attention that governments have been placing on the need to sustain workers enterprises and incomes. on average across the region, the amount of stimulus is 12% of gdp. as i said earlier of course it's higher for the advanced economies. even though income economies are recognizing the need to invest andhese worker protections, actions to protect workers. the question is will they be able to sustain them? thiser positive outcome of crisis has been the attention placed on social protection. going into the crisis, the none average.
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beyond health, countries are putting in less than 2% of gdp which is a very low number compared to the global number of 11%. now countries are recognizing the need to invest for the long term in social protection. they need to invest in the long-term in active labor market markers, to make sure and enterprises are resilient. crisis, because we know there will be future crisis. let's hope we can sustain the delveum and countries can into some of the long-term deficiencies, such as informal economies. you,: really great to have our regional economic and social
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analyst joining us. streakhead, the winning -- we will be discussing the prospect the online retailer and the global tech sector next. this is bloomberg. ♪
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haidi: here is a quick check of the latest business flash headlines. $350 millionaising
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of -- ahead of a planned ipo, even as the company's cfo walks out, the health care startup is planning a listing in hong kong next year. it is one of a host of hong kong that chinese companies looking to transform. like other companies hoping to list, it is facing increasing scrutiny from regulators. indonesia and the e-commerce platform has hired morgan stanley and citigroup to advise on a potential ipo. to company says, it has yet decide on which market and message it would use to list, but it is an option. bloomberg has reported that bridgetown holdings is considering a merger, which could value it at $10 billion. the chinese e-commerce retailer continued its rise on a second day as a public company, triggering at least 12
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volatility halts on wall street. it offers non-genetically modified food products, raised $30 million in its ipo. others like buzzer debut this month include doordash and airbnb, showing a continuing appetite for new listings. we see -- tech firm upstart seeing shares jump. --ommerce retailers bloomberg's -- we have been talking about the difference faces, all of the tech names, airbnb, doordash lumped into the same category. why was this debut more muted? guest: that's one area investors are focused on. it is part of a very dynamic and competitive market, alongside amazon. one question raised today was,
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if you are going to invest in the e-commerce space, white invest here if you can invest in amazon stock? it has not fared well during the pandemic, its costs have risen. it's business model has not fared particularly well. there was also what we saw with airbnb and doordash, it sucked out the oxygen in the room for investors. as one investor put it, investors learned a lesson on whether to trade on opening day. we saw these incredible gains on opening day, but then some declines in the days that followed. coming into this, sources told bloomberg that wish was over subscribed. it had a successful roadshow. when it closed today at touch over $20 a share, it was significantly lower than what they priced at $24, and lower than what we open that 2250. haidi: there's also been some concerns about their business model? guest: prices are low.
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it basically helps third-party sellers, principally from china, connect from u.s. buyers. what they are looking for is not necessarily convenience, they are looking for significant savings. what we learned, is investors have a threshold as well as consumers. what they were saying is they experience very serious delays getting product from china into the united states, closely tied to the pandemic. but they are now trying to do is compete with some of these brick-and-mortar retailers. the competitive landscape. one of the stories of the pandemic has not just been amazon success, but walmart, target, really muscling in and investing heavily in e-commerce. trying to get those were affordable products to consumers. the other thing is the financials are a little bit worrying for which. yes they group sales, but their expenses and losses widened significantly. i not of investors and analysts have point to this idea that the
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cost of shipping products between china and the u.s. has risen significantly. that is the business model. they are going to carry on seeing those costs rise, what does that mean for the company's top and bottom line? haidi: it's been a banner year for u.s. ipos thanks to this wall of liquidity. talk us through some of the numbers. guest: it's incredible. in the month of december, 22 billion dollars generated from u.s. listings, the best december on record. and it's we give wade generated more than $170 billion. the investor appetite does seem to be there, specifically for these technology stocks. take airbnb as an example. at the beginning of the pandemic it was really hammered, because who is traveling? they turned a corner. investors able to see the longer term and survived the pandemic, that is the appetite we have seen u.s. companies that have debuted on stock exchanges this year. have the course we do
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japan and south korea open at the top of the hour. let's turn to what to watch. >> we are keeping an eye on japan's insurance unit within a plan to buy back $2.7 billion, to allow let's ability. also keeping and i on toshiba. spendrt that it plans to $10 billion to grow its footprint over the next five years, plans including investments into renewable energy. over insult, keeping an eye on players like cosco. the domestic demand will fall to an 11 year low for steel due to the pandemic. to keep aare going watch on that. coming up on daybreak asia, keeping a watch on the central banks. a plot of all of them -- a plethora of them. we previewed those decisions out of asia. next, she is writing
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at her portfolios. focus on the door asia region. of course you have the market open intel and tokyo coming up next. this is bloomberg. ♪
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shery: welcome to "daybreak: asia." i am shery ahn. haidi: and i am haidi stroud-watts in sydney. asia edge major markets have opened for trade. asia looks to follow wall street higher as the fed chair says the need for physical action is strong. he also says he will not raise rates until inflation is on track. aussie dollar trading near a two year high ahead of monthly job
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numbers. november 20 is public reading is out in half an hour. at bitcoin topping $20,000 for the first time prompting higher bets. 30,000. lender sees marketet a check of the action with tokyo and seoul coming online. >> likely to see muted needs ahead of the decision on friday where it's bondage when plans are very much in focus. this had trading steady. u.s. bank saying about likely stay in one of three levels. stops slightly to the downside for the nikkei225 and topics this morning. let's turn to south korea which has garnered most bullish ratings since 2011. check in on the kospi this morning. what is going on there is the open in seoul is upon us. .1%. lower by korean won holding steady.
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information briefing and finance ministry economic policy direction, which will include a new gdp forecast. onwill also get 2020 stats household income in south korea, and debt. the bok is extending its currency swap deal with the u.s. for another six months to prepare for uncertainty of resurgent virus cases. let's check in what is going on in the antipodes. australian shares rising for a second straight day. organ stanley seeing earnings growth more around 20% and likening banks and that dynamic, saying yields are likely to push yields,own under kiwi rising about six basis points after third quarter gdp numbers saw eight rebounds and treasury coming online. staying below the 92 basis points after we saw three steepening in treasuries on the fed impact. on thoset's get more
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market moves with our next guest, who sees market leadership broadening out in 2021. pooja malik is joining us from california. always great having you here with us. when it comes to 2020 it was about the pandemic and cyclical trade coming toward the end of the year. what will define 2021 at where do you see opportunities? >> thanks for having me back. if you look at where markets are 66%y, asia and japan is up from its lowest in march and early recovery was driven by covid beneficiaries, tech, but the last 20% have been driven by cyclicals coming back in a strong way. where to be go from here is the important question. the markets are not cheap. we are taking multiples of 16
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times next year to two of i can see her -- see the markets going higher for three reasons. the first is markets are growing strongly. next year.t another 16% on top of that figure after. with the earnings recovery coming back into the market, and that is where you see broadening, because earnings recovery [indiscernible] in the restaurants, broader sectors, earnings growth is one we can -- reason for markets to trend higher. markets are inng a big way this year. have pulled out roughly $60 billion out of this market and with the last few weeks they have started reentering these markets but only on backstock worth $20 billion. there is still a long way to go for investors to come back into these markets and for dollars to drive markets higher as well.
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the third thing we see is government stimulus. what you saw in the fed decision policyif monetary continues to be low and stimulus ends up being higher than expected does our reasons for markets to trend higher. shery: when you go into 2021, can you really separate the growth versus value dynamic we are seeing right now? how do you account for different structural changes we are seeing in society? >> we are staying close to earnings. you have to stay with stocks that report strong earnings. the growth versus value is an interesting point because many growth stocks are long-term structural really transforming lives and we have seen that through covid. thoseis a reason for stocks to change that opinion. growth stocks have outperformed hugely, up 24% versus value
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isng down and the trading larger then that has ever been. growth stocks are trading at 22 times. at that spread is really wide, and you could make a case of value stocks coming back based on earnings recovery. for us instead of saying growth versus value spread, we want to buy value stocks but only value stocks we think will have a strong earnings because next year. coherent or transparent is the earnings outlook at this point in the recovery cycle? >> it is not very transparent. when you look at last year's are earnings or last two years rubbing is earnings they will not be predictive of earnings for next year. companies that have taken a big earnings hit this year, airlines, restaurants, trouble
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can be hesitant to provide guidance because management is unsure of what numbers will look like, so in our portfolio we are buying a basket of these kinds of cyclical recovery stocks where we expect a basket as a surprisesave earnings . [indiscernible] the earnings picture is not clear even within cyclical recovery stocks. haidi: sustainability is the other thing you like going into next year. oft are the opportunities specific traits you will be looking at in that space? >> sustainability as come to the forefront of our life and to investing this year with what covid has taught us and how it has changed the nature of the world. we do best in asia and emerging markets and we are seeing a huge change in terms of data viability in these dimensions.
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when we started 18 years ago there was barely any data we could find to measure company performance on these metrics. many country exchanges and governments have made disclosure mandatory. in hong kong the government system has been managing for a while. starting july 1, they are making disclosures about environmental and social factors also a part of the managing requirement. that is very interesting to us because we can use that data in our approach but we are strongly finding companies for governments and up having legal cash flows. we are also finding that environmental and social factors might represent nonfinancial wrist today but those nonfinancial risks end up becoming material financial
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risk. we are able to integrate this into our investment process has -- process and we are excited about it. interesting that tech stocks that might do well on environmental factors also do well on social factors. gender diversity is an issue. we are able to build a holistic picture with these proposals. haidi: great to have you with us as always. we do have one big mover in the tokyo session. itsn's -- jumping 4% in fourth straight day in gains. at the biggest jump we have seen in nine months. trading at the highest levels since july 2019 after japan post insurance unit planning to buy dollars.9 billion u.s.
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and shares giving the insurer more freedom to expand its business i made those decisions that the holding company owns sure 60% and they will be selling shares to shrink to 60% or less. we note japan post insurance is trying to rebuild its business after a sale scandal next year. this is part of that restructuring. we are seeing investors liking that. let's get you to karina mitchell. beina: brexit talks may added to a conclusion with processing the final major hurdle is to be clear. optimism is growing as to the two sides are said to extend negotiations. hass johnson insisting u.k. the natural right to control its own waters. the eu says it is possible talks can be bridged. i cannot tell you whether
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there will be a deal were not, but i can tell you there is a path to an agreement now. narrow, but be very it is there. holdups asworsening more than 16,000 drugs are reported to be waiting to cross. wednesday was a great day in terms of disruption. it became the most difficult date so far this month as talks drag on in brussels. police have set up truck areas outside to ease the pressure. in other news, iran's supreme leader has entered the nuclear debate adding his support for finding a diplomatic breakthrough with the u.s.. the stance is seen as a message to hardliners in tehran not to undermine potential nuclear talks with a biden administration. at the backing echoes comments earlier this week by the
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president, although they also warned iran not to trust the enemy. 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. i am karina mitchell. this is bloomberg. , after thel i had federal because final meeting of the central banks in indonesia, taiwan, and the philippines will make their latest policies decisions. we will get the view of hsbc fred newman. a new high for bitcoin. $21,000tocurrency past as it is best institutional funds. much more ahead.
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shery: bitcoin has broken the $20,000 barrier for the first time in more analysts are saying it will not stop there. bitcoin's milestone brought it to its 2020 gains to 190%.
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scott minerd believes it still has some way to go telling bloomberg it could eventually be worth $400,000. in an exclusive interview, he said his approach to bitcoin is driven by what he calls the federal because ramp to -- rampant money printing. >> i remember when we first did qe, my comment to people at the fed at the time was i do not know how you unwind this without having some financial accident. i think we got that. we saw that in the taper tantrum anyback in 2018, so no unwind of these programs were even stopping them leaves the ,ed and the economy vulnerable specifically of concern is the ,orporate bond purchase program and municipal debt or public
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financing program where we see organizations who have basically weped out incapacity, but have a long list of municipalities in this country that are going to have severe issues within the next six months regardless of a vaccine or anything else. >> on the other asset i am .ooking at is bitcoin, up 6.3% tom mentioned it earlier. guggenheim as reserve the right to invest 10% of its macro fund into bitcoin. have you started buying it and how much is this decision tied to the fed's extraordinary policy? >> to answer the second question, clearly bitcoin and our interest in bitcoin is tied to fed policy, and the rampant money printing going on. fund, weof our mutual
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are not yet [indiscernible] with the sec. we are still waiting. we made the decision to start allocating toward bitcoin went bitcoin was at 10,000. it is a little more challenging with the correct price closer to 20,000. amazing over a very short period of time how much of a big run up we had. having said that, our fundamental work shows bitcoin sould be worth $400,000, even if we had the ability to do so today, we are going to monitor the market and see how trading goes, valuation. c.i.o..he guggenheim it bitcoin to catch another milestone and what has been a busy rally this year indicating
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forecasts scoffed at months ago. we have been tracking this story. now that we have got above $20,000, what is the next hurdle or milestone you were watching for in terms of price action? >> partially if bitcoin can stay where it is. job, it quite a quick hurtled above 20,000 to very quickly and it had been sticking range $18,000 to $90,000 -- $19,000 range. that is a good sign in 2017 it backeduick run up and up. this looks like it has more staying power. this move is quite sudden. shery: does that mean we could actually eventually get to that $400,000? >> there are a lot of predictions along those lines
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and they deal with the scarcity of it, and some people say it million, soth $1 there are definitely these targets. some of the theory is if you get institutions getting into it and if everybody puts 1% of their assets into it that would be a lot and that would get it to that level, but obviously we are still a long way from there. haidi: the holding structure for bitcoin is still so narrow, but a lot of new developments have been happening across the crypto space during this bull market year. do investors change the way they think about this asset class? >> there has been a big change in it, and people seeing it is a diversifier, it might be something that really does work and what folios, and more institutions are seeing that, billionaires are seeing that, but people do need to be careful. there is fear of missing out.
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you look at this one up and say i want to get in on it, but do be careful because some of the assets can be expensive, hard to trade. there are security issues, so anyone looking to get into it should do research and make sure they know what they are getting into. editorour cross as it with the latest on bitcoin. 12 week sabbaticals or bigger bonus pools. when some banks are planning to keep employees happy in the wake of the pandemic. we discussed the parts next. this is bloomber ♪
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shery: barclays is wearing the idea of boosting its bonus pool for traders this year by 10% while citigroup will soon offer staff extra vacation time and other perks.
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su keenan is following these two elements. there was a lot of talk of record performance by these banks but i will this translate to perks received by the staff. citibank is trying to balance these out. >> is definitely a big dilemma for all of wall street, how can the banks manage a payout to traders when there is such a big uncertainty and also conversely how do they manage their workers who have been under enormous stress fortnite months while working from home? at citigroup workers will have the ability to take a 12 week sabbatical if they want and that would be part of new perks. they will also be able to buy as many as five different vacation days annually next year and the bank is deploying a program that will let staffers work pro bono with a charitable organization
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or educational organization for as much as four weeks while receiving their full pay, one to percent of their base pay. all of this has resulted from a series of talks over many months as a firm between human resource professionals and workers to discuss what work will look like after the pandemic subsides. that is a big question for many industries, but one top hr executive says people sometimes just need a break and they think they need to pursue other charitableit may do work and they want to do this without halting their career. citigroup will be rolling out these perks in the hope that it shows workers that they are responding to what is a very unique situation. we are also talking about barclays. bloomberg has learned it is holding virtual discussions on
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boosting its bonus pool. >> people are telling bloomberg barclays has begun talking about likely boosting the bonus pool for traders by 10%. barclays at of those financial institutions that have this record performance, but we are told at the same time no final decision as been made, and there could also be a change to this proposed plan depending upon what fourth-quarter numbers turned out to be. we also know people have declined to comment specifically. what we are hearing is the 10%, andrace would be it would still lag behind the at surge in trading revenue the bank in those past nine months. at the chief executive has said the bank wants to compensated fairly but they were mindful of the uncertain economic outlook.
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that is the big story across all banks. lenders must await rewards against the strain of the pandemic against all other units and all of these banks looking to each other for the benchmark. barclays decision will be closely followed. back to you. haidi: su keenan in new york. let's get a check of headlines. at the state of massachusetts has filed a complaint against markets --obert hurt ramping up markets. they say robinhood encourages with users to stay engaged the through game of vacation. robinhood disagrees with the allegations and plans to defend itself. texas has launched a major lawsuit against alphabet. the -- on digital advertising claims google controls pricing and engages in a market collusion to rig options.
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it calls google's alleged actions a tremendous violation of justice. china driving a starbucks rival is to settle a fine against u.s. allegations that it overstated revenue. the company will handle over $180 million to resolve claims it intended to give investors a false impression of its growth. the chain says it fabricated $100 million in sales until january 2020. luckin neither admits nor denies those allegations. the fed says stay the course with a plan to support the risking seeingis risks alone. a fed president tells us what he thinks could push policymakers back into action. forget -- miss an exclusive interview. ceoill be speaking with the
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later. this is bloomberg. ♪
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shery: we have breaking news out of singapore. getting nonoil domestic export numbers year on year, a contraction of 4.9%. the expectation was for a slight rise, and again a contraction for a second consecutive month. when it comes to month on month numbers for non-oil exports, a gain of 3.8%, which is good but a huge mess when it comes to expectations of gains more than 8%. still a rebound from two months of contractions. electronic exports, a
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contraction of 3.8%. digitt seeing double losses, down 18.4%, which is surprising because we had seen recovery, especially when it comes to electronic exports. we are not seeing it for the month of november and japan, those trade numbers for the month of november felt more than expected. those november numbers for singapore not looking that great. haidi: let's take a look at aussie job numbers. i very volatile series. we are seeing when it comes to november numbers full-time employment change, just over 84,000 new jobs being added to the economy. shy.time jobs just very healthy conditions, the participation rate also anvated, 66.1%, a bit of expected as well as the unemployment rate falling from
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7% the previous month to six point 8%, also better than expected. we were expecting the unemployment rate to hold steady at 7%. total unemployment change right, 90,000 jobs i did the economy, slightly less than the previous month but more than double the 40,000 analysts had been expecting. let's get a look at market reaction. >> muted session in asia when it comes to stocks with activities leading modest gains. regional benchmark could be on course for another high even though it momentum is telling for korean cheers. kospi under pressure as virus cases rise to a daily record. this prompting the bok to extend its currency swap program with the u.s. to prepare for uncertainty on emergent virus cases. we are seeing nikkei stocks to the downside what japan
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insurance jumping on its buyback. crypto names rising in tokyo as well as seoul after bitcoin top $20,000 for the first time. equity check on currency. ozzie yen trading above 78. going along the pier with a two week call at 80. holding at the gains, 650, the less time was december night it tested on that and yields are rising in austria. kiwi 10 year rate up on that robust gdp report. at the country inking a deal with novavax for 10.7 million vaccine doses. the treasury space, after we saw the -- come back into the fray overnight the fed indicating it will support a soft landing for the economy. the two-year 10 inch gap reached since point the widest october 17 on u.s. stimulus progress. 10 year yield briefly across
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that 95 basis point level, it now trading below 92. -- telling us earlier he does not see a backup of yields. when the fed talks about tapering its bond buying. korea you mentioned south and those infections. we are getting confirmation that more than 1000 people have been infected in the past 24 hours. the is the number, above second consecutive day of cases surpassing that 1000 level. 2.5h korea is in that social distancing tier level. we will be watching closely if they decide to go into something closer than a lucked out we have seen around the world but not in south korea. let's return to the fed. it's decision to stay the course has been top news. presidentew york fed tells us what he expects the fed
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to update its mass purchasing program. >> as long as the recovery is well in hand, some time for the first half of 2022. that is why they will start talking about tapering those purchases. we will wait to see when they achieve their inflation [indiscernible]. >> that is far down the road. it is interesting this is so much in focus for the bond market although investors have to look ahead. how does the economy look to you and how badly does it need more fiscal stimulus? circumstance -- circumspect? >> i think it is clear kay things more fiscal stimulus is appropriate. circumspect about telling them what the form should take. in the economy will be quite weak as the pandemic rages and
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social distancing increases. we will probably have a tough winter. to supports a bridge incomes to get it to the other side when vaccines are distributed and people are immunized. in the second half of the year we will see a powerful recovery. so muchrealizes only monetary policy can do to support the economy given that financial positions are already accommodative. at what they want to see is something on the physical side to support income through that valley we will face over the next month. >> you said the fed was push and a number of different ways about their tools. how much more can you do with the bond purchases? why not do more now. ?hat is the answer for you if the fed decides to start buying more bonds will it help them reach their goals faster? clearly docould
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more. they could buy more bonds, and that would put more dollar pressure on long-term interest rates, but that is not the conversation in the economy. notr interest rates is showing the economy back. if the fed did more it really would not have that much consequence to protect the economy. they know they have already accomplished what they want to accomplish in terms of supporting financial markets, making financial decisions accommodative. the only way they will escalate as if things are worse than what they anticipated. we get thingsif essentially better next year, if we see a spike in inflation? is that a concern at all at this point? >> chairman powell was asked about that and he said it is important to recognize even as prices go up as we get the strong rebound in demand, that
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is a change in the level of prices, not necessarily inflation. the fed is saying as it looks past the first bout of inflation due to readjustment of demand, my own view is the risk on inflation is higher than what some people think mostly because there is a lot of dried powder. it was at a percent going into this pandemic. .hen we come out of this of darkness in the winter we will see a pretty strong recovery in the economy. people see upward pressure on prices more substantial than what people anticipate at this point. shery: especially as you consider the president-elect is considering more stimulus on top of whatever we get this week or around february. i do think there was any for that and what will that do to the macroeconomic picture? x assuming congress and
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something close to eight $1 trillion package, that is probably sufficient to ride that bridge to recovery on the second half of the year. [indiscernible] speaking todelete us earlier. in the wake of the final fed meeting, three asian central banks are set to deliberate decisions. the philippines, taiwan, and indonesia are all forecast. our next guest is the regional banks will take it very slowly. neumann joins us now from hong kong. great to have you with us. from the fed last night seems to beat this is a central bank recognizing the limitations of their own capabilities. fiscal still expected to take the ball and do heavy lifting going into next year. is that really the scenario facing most essential banks globally?
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>> that is right. that is a very universal theme that you need fiscal policy to drive demand and help households and civilians impacted by the pandemic. the other take away from the powell message yesterday is that the fed is not in a hurry to raise anytime soon, it will stay accommodative, and that provides breathing space for central banks and emerging markets, including across asia as well. of economiesms going into next year best place to see a recovery, a lot of there isve been saying -- in enthusiasm and i well china is going to do. if that is a risk how does that ricochet from the rest of asia ems and develop market relying heavily on this chinese recovery story?
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>> in many ways china 20 is economy as already recovered i did 2021 the chinese cycle is maturing in a sense the big upswing is already behind us and at the parties are worrying about over stoking certain parts of the economy, so at the margin that they engineer a lower credit impulse. lookny ways china may not quite as strong and that takes away a lot of the impulse for the rest of the region and the world, and that will in turn put more pressure on other central banks, other governments to do more support to affect the recovery in 2021. it is another argument as to why d central banks do not really tightened virtually at all in 2021 anywhere in the world. shery: but there are risks to that? you talked about risks and what
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policymakers are trying to tighten right now, but it seems to be the case many other economies like south korea, whether it is household debt or asset prices, as well as new zealand are seeing the risk of too much money and liquidity out there. >> it is a delicate balancing act. you have very low inflation pressures in china, even speaking about deflation potentially, but on the other prices, have asset particularly in real estate and all of the liquidity around the world driving at set prices higher. we have the risk of asset bubbles on the one hand, but we also have economic hardship still, especially with what powell was alluding to yesterday. lower income skills are really suffering. if you want to provide jobs and income supports, the central bank is caught in a bind. macro potential tightening in some space, korea is doing that,
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china is doing that and you might see much more of that to find calibrate monetary policy. shery: it has been interesting going to this pandemic because we have seen more of that debate of whether or not monetary policy should be doing more especially when it comes to inequalities we see and society. at the federal reserve as been talking about black unemployment as well. .o you see that trend in other central banks around the world as well where it is taking a more expensive view in the macroeconomic picture? >> that is right. it is a global trend. the fed has embarked on this but other central banks across asia as well. we see in many countries now public debate about whether the mandate of special -- central bank should be expanded from purely focusing on inflation and taking employment into consideration and indirectly income inequality as well.
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is a blood tool to address income inequality. it is much better address with fiscal policy, and central banks are almost as to do the impossible. butuing not only growth having no high inflation, no asset bubbles. they really only have one tool and that is interest rates, and that is a blunt tool to fix all of these problems. shery: it was great having you back on the show. hsbc ahead of asian economics research fred neumann. plenty more ahead on those central-bank decisions. the nexts join us in couple and a half hours. this is bloomberg. ♪
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karina: i am karina mitchell with first world headlines. u.s. treasuries as branded switzerland a currency manipulation -- currency manipulative. trump as -- switzerland hit back saying it is willing to intervene or strongly to maintain currency stability. vietnam was also criticized, although china it remains only on the u.s. watchlist. a hedge fund specializing in volatility wagers has been emerged as one of the largest investors in bitcoin after
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buying more than $6.5 million in cryptocurrencies. peters says he intends to tap into the growing interest of crypto among institutional investors at will take holdings of the coin to $1 billion early next year. state media reports intranet says it learners's capsule -- lunar capsule has returned to earth. china five blasted off at the end of next month to collect the first substantial lunar material since the 1970's. at their the first agency to bring back lunar material after the u.s. and russia. 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. i am karina mitchell. this is bloomberg. vaccine at rollout in the u.s. has had its first neck within our allergic reaction reported in alaska.
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problems with delivery. a contest hospitalizations show the worsening situation across the country. let's go over to our senior editor for more. hospitalizations increasing in the u.s.? where are we seeing the states driving that? >> the department of health and human services counted more than 112,000 covid-19 patients across the united states as of tuesday, a record. the number as been increasing by more than 1200 cases a day. california and new york are contributing 75% of that increase. california as at a 70% increase in covid hospitalizations this month alone. arey: to what extent hospital data a barometer of the severity of the pandemic? patientse covid-19 require isolation from other patients as well as rate infection controls and ppe for
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those incontact. that puts a large strain on health systems and when the proportion of hospital patients with the coronavirus gets up over 15%, that is a bad sign. in the united states about one dozen states have one in five, 20% of hospital patients with covid-19. arizona and nevada are up to 26%. are youhat other trends spotting across the u.s.? statesre seeing midwest that have the highest proportion of hospital inpatients with covid-19 back in november and early december. and they are showing a reduction in hospitalizations as coronavirus patients have recovered or discharged or tragically have died. in states like wisconsin, north and south dakota, michigan, montana, and wyoming communications avenue fallen
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around 20% from their piece but we are saying -- seeing in states like new york, california, rhode island as well cases are going up. the snowstorm here in the u.s. is getting worse. you can barely see anything. that would be around the world trade center, but you can barely see anything right there. we are expecting about one foot of snow tonight. it will get even worse after midnight. this could be one of the most severe snowstorms in new york city as seen in several years, and about a decade or so. you are looking at the brooklyn bridge. you can still see cars moving and going along the way but this is expected to get that, and i am being told that things are starting to slow down. we have seen in the u.s. flights getting canceled. more than 1000 flights canceled this afternoon.
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that will not help the airline industry already hit badly by covid-19. worseorm could be getting then in about 10 years in the big apple. this is bloomberg. ♪
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haidi: -- has agreed to sell a
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50% stake in the greater washington area to support pension funds. it includes an austrian company and unilever. the 50% stake will cost the pension fund around $2.1 billion u.s.. hong kong logistics firm is said to be seeking new funding at a valuation of 80 billion u.s. dollars looking for 500 million, possibly at work later. it was founded in 2013 by a professional soccer player and provides then handling career services on demand. it operates in 24 markets across asia, latin america, and the u.s. with a pull of almost three quarters of one million drivers. cathay pacific continues to be hammered by the pandemic with traffic down 99% on last year. just 88,000carried passengers and is warning month losses will be worse.
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in the first half that came in and $1.3 billion u.s.. lego is one of the world's wealthiest most recognized brands, but in china the little blocks are new. lego china additive retail says novelty factor is helping the company sustain double-digit growth and open dozens were stores. they took bloomberg on a tour of one of the stores in beijing. >> for lego china is one of the finest growing markets. are now setting up our digital team in china, and that will lead into understanding consumers in a more holistic way through all our touch points. do you expect double-digit growth to continue into 2021? >> that is our expectation and beenouble-digit growth has
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good for this year. tom: what is driving that growth in this market? >> more and more families are open-minded about this way of learning and they want high quality products. that is a big piece of the driver. the other piece is the fact that lego is still a relatively new brand for china market. brand awareness and affinity is not very high. that is an area of opportunity for us to continue to cultivate, and that is why we are opening up more stores to help people to get to know the lego brand and really know the spirit of learning and play. tom: how many stores if you open in the chinese market this year, and how many do you plan to add in 2021? >> this year we opened 80 stores. branded stores7 by the end of october. that is our latest number across 57 cities and the plan is to open another 80 stores next year
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and so we will be reaching the 300 store milestone next year. by the end of this year we will be around 60 cities and by the end of next year 80 cities. tom: one issue faced by many businesses operating in the chinese market is intellectual property theft. how is the company dealing with that phenomenon that still exist year? signals, positive including from the government and courts on ip focus. we are seeing the environment become better, and hopefully that will continue to be the case. that was lego -- 's chinahat was lego head of retail. several asian central-bank decisions as well as the fed discussing what to expect.
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guest, plus analysis on chinese markets right at the opening of trading. asia.s important daybreak this is bloomberg. ♪
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>> it is 9:00 a.m. in beijing. ,elcome to bloomberg markets china open. i am tom mackenzie. david: we are counting down to the open of trade in the chinese mainland. for equitiestart across the region. washington is the big story. fed chair jay

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