tv Bloomberg Daybreak Australia Bloomberg January 10, 2021 5:00pm-6:00pm EST
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anchor 1: a very good morning and welcome to daybreak: australia." we are counting down to asia's major market open. thisr 2: the top stories hour. top democrats meet in washington over the assaults on the capital and president trump's comments before and after. a plan for an impeachment this week. with the president barred from
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twitter, they check continues to crack down. parlor is searching for a new host. china raises the heat on the next u.s. administration blocking mainland companies from having to follow what it calls unjustified foreign business laws. anchor 1: as the political turmoil continues, let's look at the markets. u.s. stocks were hitting fresh record highs despite the jobs numbers showing a weakness in the labor market. there was a hope there would be more stimulus with the democratic majority in the senate thanks to the georgian runoff last week. kiwi stocks on the back foot to start. a reminder of how we closed in the u.s., up by 0.6%.
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the nasdaq outperformed the treasury. by bloomberg dollar index up about 0.1% continuing to gain against almost the entire g10 basket. a lot to look forward to when it comes to more gauges on the economy in china. about 2: it is all president trump's final week in the white house and sources citing he is planning a defiant stand despite being blocked on social media. mounting calls for him to resign. to ros in d.c. what does his last week in office look like? >> it sounds like president donald trump will do some presidenting in his final week. we have it on good authority that he will go to the u.s.-mexico border on tuesday to
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look at the border wall that has been his signature move over the last 45 years. the wall was not built but he will look -- the whole wall was not built but he will look at the miles built during his term. it sounds like he is fairly confident that he is not going to be impeached or removed from next 10 dayse and he is planning to possibly put out some more executive orders. he has certainly been looking at things he can do about china and basically, taking his presidency right to the final minutes. hearr 1: we continue to that the democratic leadership is working on impeachment. we have seen social media taking their own action and somewhat see fairly belatedly. taking this action against the president. ros: absolutely. many critics of president trump
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has said that banning him from twitter was long overdue. but even certain republicans like senator pat toomey from pennsylvania who has become a trumpd and strident critic in the last week or two made some comments today that even though he believes donald trump should leave office that nobody could have known the kind of violent events that happened last week what happened based on four years of president trump's presidency. there is a lot of back-and-forth and forth about when something should have been done and what led to what and a sense of the paper trails with the tweets to suggest that he should have been banned earlier. but he is gone now. certainly, some republicans -- republican loyalists believe that is the wrong move but that
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is what we have for now. anchor 2: markets watching closely about what happened to another stimulus package especially when it comes to the stimulus measures that included the checks to the public. majority.rats in the we don't know how it is going to go. we heard again today from senator joe manchin from west virginia, a centrist. he has been on the fence about whether the stimulus check should be raised to $2000. he said it is not a yes or no answer. manchin willoe need to be persuaded by joe biden and the democratic leadership. we don't know how that is going to end but there will be a lot of pressure to go ahead with
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those checks especially considering how weak the economy has look in the last several months. you can get more on donald trump's final push to preserve his legacy. china continues to push back against u.s. engines ahead of joe biden taking the administration. protecting its firms from what it calls unjustified foreign laws. is with us. what do these laws mean? the chinesenow, authorities have responded to u.s. sanctions whether it was with executive orders against andat or huawei or alipay the like. i have responded with additions
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to their unreliable list. but that has not been enforceable or they have not used it yet so they are finding new ways to retaliate against the new rules from the trump administration. we learned over the weekend that they have published new rules of effective immediately allowing chinese companies or citizens, those doing business in china to essentially ignore u.s. sanctions. they could also go to chinese court and sue for compensation if those sanctions do them harm. the ministry of commerce in china in a statement said essentially -- companies or people in china do not need to comply with foreign sanctions. citizens allow chinese and companies to sue for compensation. a lawyer here in hong kong, nicholas turner said that companies with significant interest in china would need to tread carefully, foreign companies, particularly american
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companies. a u.s. was not specifically named in these rules but mr. turner said they will need to tread carefully to avoid being subject to claims by counterparties in china. and he said the finance sector will be among those most affected by the new rules. anchor 1: and there is another measure that could raise tensions between the u.s. and china with the trump administration throwing a bomb when it comes to another taiwan issue. >> this could be extremely significant or it could be nothing. how is that for an opening sentence? nine days to go until the trump administration is out and the biden administration comes in. biden't know how the administration will view the one china policy. this could be the final move to send a signal to beijing that the ties with taiwan are important. this is what mike pompeo said.
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for decades, the state department has created complex and internal restrictions to regulate our officials' interactions with their taiwanese counterparts. no more he says. the latest from the trump to reshape the relationship with taiwan. we have the secretary of health and human services saying they have made recent trips to taiwan. and the u.s. ambassador to the united nations is expected to visit taiwan this weekend it would be the first such visit to taiwan since taiwan was excluded from the united nations in 1971. china has called that visit the breach of the one china policy accusing mike pompeo of staging a final show of madness. this is unclear whether this is actually just semantics or this
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is actually a step towards a should say of official recognition of taiwan and that would be significant in the u.s.-china dynamic but we will have to see. anchor 1: especially what happens under the biden administration. the latest on the u.s.-china relationship. plenty more ahead on this latest move. we will also hear from and aation chambers controlled risk partner, steve all for it. let's get over to karina mitchell. >> global coronavirus cases have now topped 90 million so the trend has varied across the globe. in new york state, casey's fell -- cases fell a second day and japan has reportedly found a virus variant similar to the one in the u k and south africa. vaccine regulators warned that
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changing the time of injections can weaken their effectiveness. and ohn including kyoto soccer are asking the government to declare states of emergencies as virus cases rise nationwide. tokyo reporting 2200 cases on saturday just shy of the record. in osaka, it reported its second-highest number. japan has tightened border regulations. aircraft --, and the aircraft investigators are saying the boeing vehicle that crashed and broke up in the water soon after takeoff. the 737 500 was much older then the max plane that crashed in late 2019, a disaster that helped lead to its worldwide grounding.
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and the investigation of a potential hack. hasbank says the attack been contained but the nature of the information threatened is still being assessed. it may have's says included commercial and personal data adding that the third-party filesharing service has been taken off-line. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. tech cracksad, big down on donald trump. we will be talking about those implications. and we speak to an analyst who [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help.
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report. >> this is a function of the lockdown. >> the results of the surge in virus cases. >> this report underscores the likelihood we will see additional fiscal stimulus. >> you might be able to get another trillion dollars. >> it will be the stopgap. >> pricing in much more stimulus. >> that has been a trend. >> a gradual path towards sustainable inflation. >> i don't think this report will take us all the trend. haidi: some of our guests from the disappointing december jobs report. our next guest is betting on a return to normal at the start of the third quarter. is the 1879ow
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organization. what does this do to the reflation that we have seen? think the jobs numbers certainly supported the idea that we are a little too late with that last round of stimulus. i would've liked to have seen it sooner. with the biden white house and the democrat senate in the u.s., i think things are poised well for the reflation trend to continue for a little longer. i don't know if this is a sign of a longer trend or a repricing. are raisinglantes their heads a little bit. and there is an expectation that with democrat spending, it will
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be easier to get through congress and we should see more spending to support the inflation rate. lift toe are seeing a the u.s. dollar given rising treasury yields. what does this do to the trade? jim: i'm sorry? think the strength of the u.s. dollar, given where we are overall, is certainly an expectation of growth in the u.s. and an expectation of a recovery and higher interest rates. it will have a short-term impact and drive up the price of the dollar what the long-term trend of a week dollar will be with us for a while and we are at the lowest point we have been in a couple of years. i think that is more of a repricing than a change in the longer term trend. i'm not particularly concerned
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about it. suggested, wey are seeing the dollar trading higher against every currency. how much of this correction sticks? does this change your calls when it comes to, for example, emerging market? -- markets? >> and not only that but materials also. last week was a great week for u.s. equities but the truth of the matter is american markets performed at the lowest performance of across the globe. i think that goes to a return to normalcy. certainly, a biden administration, global markets and global economies in global participants are looking at the u.s. and thinking there will be a more -- a return to how things used to be, a more favorable outlook towards trade and less
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aggression towards having to win in every trade negotiation as opposed to looking for some common ground. with the expectation of trade barriers coming down, i think more fluidity in the overall trade globally certainly tends -- the rising tide should support all boats including emerging markets. when you look at some of the big winners including tesla, or anything elon musk talks about an bitcoin, what does that tell you about the transformation of the way that assets are being priced in the pandemic? will that be repriced as things returned to normal towards the second half of the year? >> i think that goes more to the liquidity side of the equation. we have seen global central banks pumping a lot of liquidity into the economies collectively
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since the start of the pandemic. some of that excess liquidity has found its way into risk assets. like i said earlier, i'm not particularly concerned about inflation in the traditional sense. but that is not to say that we might not see -- that is not to say that we won't see reflation when it comes to asset repricing. -- i see thatsla as an indication of broadening of the markets. pe ratio700 plus of from tesla, that is a grown-up and mature company, it will not be trading at a 1700 multiple. how many more cars do they have to sell to sustain the level of investors?urther bitcoin has no tangible asset
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behind it and to me, that is like tulips. that concerns me a little bit. when we think about the valuation of markets as a whole, they may have gotten ahead of themselves especially in some sectors, with the stimulus we expect and the continuing rebound, especially in the sectors that have not yet come back, the person-to-person sectors like hospitality and entertainment, where we expect to see a huge economic boom as things get back to normal in the second and third quarters of this year. from an earnings standpoint, there is a lot to be said for the earnings recovery collectively supporting the higher multiples we are seeing on the equity front. that is not to say that they are in high territory. there certainly could be a little correction along the way. haidi: jim, great to have you
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with us. indonesian investigators recover part of the crashed boeing jet and say they are starting to hone in on the black ♪ you can go your own way it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get nationwide 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get nationwide 5g included and save up to $300 a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile. i hope my insurance pays for it. can you tell me how much this will be? - [cashier] 67. - sorry.
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haidi: indonesian investigators are closing in on the flight recorder from the air jet that crashed on saturday. than 10,000 feet shortly after takeoff. authorities say the jet was in touch when it fell into the java sea. let's get the latest from our aviation reporter. potentialere is the -- we know the potential cause of another aviation tragedy. don't know very
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much at all about the cause. we are starting to learn more about what happened on the plane though and basically, about three and a half minutes were a little more after the plane took off, it leveled off somewhere in the neighborhood of 10,000 feet or 11,000 feet above the java sea. and then, for reasons we do not know yet, it took a very dramatic and sudden plunge. higher at speeds far than we have even seen in other accidents before. that itindications are was going 400 or 500 miles per hour very close to straight down before it hit the water. the reasons are not very clear. there is a host of things that
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could cause it ranging from action by the pilots, a mechanical problem, a combination. often, accidents are caused by a combination of things. that is what we know so far. haidi: this is a boeing 737 model but not the same 737 max that has just taken to the error again. tell us a little bit about indonesia's safety record when it comes to its aviation industry. >> your first question -- this a 25-30-year-old plane. thegenerations older than 737 max. the significance there is that the max that crashed in
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indonesia just over two years ago had a feature on board which caused it to dive automatically. but that is not on this older version of the 737. we know that is not the cause. that theld also note good has itself a fairly safety record. it has been in service for many, many years and there are thousands of them around the world. so that does not offer much in the way of a clue either. but you are right, indonesia has had more accidents than many other nations. industry was chastised for problems about 15 years ago by the europe and united states. haidi: aviation reporter alan
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♪ >> you're watching "daybreak: australia." top democratsry, meet in washington later monday to plan a response to the assault on the u.s. capitol and president trump's conduct before and after. nancy pelosi and her team will talk after they introduce a house motion of impeachment. there is no timetable but they expect the motion to be tabled tuesday or wednesday. pelosi has called on the president to resign. apple and amazon are removing social media platform parler from their services after it came to prominence after the
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storming of the capital in washington. apple is rubbing it from the app store and amazon will no longer hosted on the cloud. arler was an alternative to mainstream social media messaging sites. chinese state media say the u.s. plan to remove decades-old restrictions on interactions with taiwan is sabotage by the incoming bided administration. secretary of state mike pompeo says he is ending the state department's internal regulations with taiwan. kelly craft is expected to visit the island this week. it is the first such as it since taiwan was excluded from the u.n. in 1971. and the meeting of the workers party of north korea has run longer than the last one in 2016, but with few headlines. kim jong-un attended at the weekend but made no speech as the congress debated finances and relationship with the military. the eighth congress is expected to wind up with the announcement of new top officials before a
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grandiose parade. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. the number of coronavirus cases in the u.s. is using slightly new infections in new york lower for a second day after reaching a record of more than 18,800. the vaccine rollout is also casering pace locally -- globally after a slow start to the u.s. program. does it seem like a turning point to you? >> i don't know if i would say turning point. there is still an enormous not a hugeo, percentage of the vaccine has gotten out there, i think about one third is the number that has gotten into arms.
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but states had very restrictive rules about who could get it, it was largely health care workers and people in old folks homes and workers there. in the last few days, places from new york to california to utah to florida, all basically open things up after a big fight. tomorrow,aid starting people over 75, essential workers, even people who work in pharmacies will be able to get the vaccine. the fact they are opening this helped speedt has things up a bit. pace of the vaccination crucial at a time when we continue to see the new strain of the coronavirus popping here and there, japan saying they found it in the country as well. yeah, just reported today, japan says, and there are very
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few details, that they have found a new strain. it is apparently distinctive from the more transmissible strains found in the u.k. and south africa, although they are not entirely sure how. they know it came from brazil. scientists there looking at the various genetic markers to see how it is different, how it is the same, how it has impacted, and if it is more infectious. our correspondent with the latest on the pandemic. it is time for morning calls, a snapshot on notable views ahead of the asia trading day. i'm looking at the u.s. 10 year treasury yield, which has climbed past. standard chartered has revised its forecast in response to the democrat's victory in the georgia runoff elections. they now see the 10 year yield hitting one point in -- 1.25% by
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the end of the second quarter and 1.5% by year-end. drivenvision they say is more by expectations of fiscal stimulus and related supply instead of inflation fears. haidi: we continue to watch the dollar, it has been gaining against virtually every other currency since the georgia runoff elections. jp morgan saying -- part of the dollar bearish narrative. treasury saying while they are still wary of being able to call the end of the dollar downturn, the direction of real yield is supporting the idea of a greenback comeback. they say democratic wins and congress could provide a lifeline to the dollar, especially when you're looking at low yield. looking at a normal rate spread model, and an extra 15 basis points, toward a 2% uplift for
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that includes twitter, which permanently banned his personal account, citing the risk of further incitement of violence. twitter's former head of government and elections, adam sharp, gave us his thoughts. this when you have created " public town square," which can whichblic town square," can describe twitter, facebook, etc., one thing that makes fundamental rights work, the first amendment, is they are somewhat universal. i know my rights on my street corner are the same as if i walks two streets over -- walk two streets over. that's not the truth in the digital domain. my rights as a citizen are not the same on twitter as they are on facebook as they are on reddit. when we engage in political speech on these platforms
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believing we are in a public space, we are not. we are very much in a private space and our free speech rights are being defined by the whims of executives of publicly traded companies. i think a conversation does need to be had. if you don't want government defining the perimeters of free speech, do you want to hand that ein over to ceos and executives of publicly traded up knees whose loyalty is not necessarily to public ideals and free speech, but shareholders and shareholder value? >> i know you haven't been at twitter a few years, but take us into the discussion and thought process that goes into banning an account. adam: i think at the end of the day, the platforms all take very seriously the idea that they are the platform. that they are the connector.
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that the best response to bad speech is more good speech. that the moment you start drawing lines, you are always going to be stuck in this debate over why didn't you draw the line over there or over there? do or thet thing to ideal thing to do is to create a public forum where there can be an exchange of ideas and then step back. , when you get to the scale these platforms have gotten, that tends to be a little naive. i think what the companies found ideals they had early on did not scale as quickly as the technology and that proved to be a challenge later. twitters former head of
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government and elections speaking to quicktake geo -- quicktake. lopez, us now is maribel founder of lopez research. there is criticism from every angle, every side as to what twitter and other social media platforms have done. they should have done this earlier, why take offense to the latest tweets when myriad others have been allowed to be out there and engage with people? others saying they should not do this at all because, as adam sharp spoke to earlier, there is a view that more speeches the better answer to bad speech. what is your view and is there a sense that this is a moment of reckoning, a bit of an existential crisis into how these social media companies conduct themselves when it comes to politics? maribel: i believe we are at the watershed moment for social media companies in general. these last incidents have shown
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there is a fundamental challenge with how they have structured their terms and conditions. there continues to be a shift even by their own definitions of what is and is not correct and andt to have in a platform, they are more news and media platforms and they give themselves credit for. they put themselves in upper carious position, which will likely lead to some form of regulation, perhaps even within this year. what does that regulation potentially look like? maribel: one of the things that are very challenging right now is want to be flexible in terms of terms and conditions and trying to define what is or isn't something such as hate speech, however, we can't go changing the rules every three months and we also have to have some consistency. as you noted earlier and was noted in the last conversation,
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some things were ok and then they were not ok. the timing of that is also very interesting as well. i think we have to be sensitive to the cultural context and what people want, but i also think we have to have rules and guardrails and right now we don't really have any rules or guardrails because they are private companies and they can do whatever they want. that is fine, but they have not necessarily proven they can deliver a consistent quality that is expected of somebody that claims to be a platform. shery: at the same time, president trump is now saying he may be building his own platform. newave seen parler, the social network preferred by conservatives, pulled out of google app stores and apple app stores. thereort of avenues are for those people who do not agree with mainstream social
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media companies? maribel: i think this is the debate we are having right now. it is unclear what is available to anyone. it is unclear what a private company can or cannot shut down. moment we have hit that where it is only a matter of time before something else happens and somebody says we have to regulate this. i think we are at the beginning of that dialogue right now, and it will be the way telecom and other things have been regulated in the past. the reality is, to answer your question, no one knows. you can put something up and if it is deemed inappropriate, apparently it can be taken down, and that is within the right of a private company to do that. , you'rethe question is asking if there will be other alternatives? there will be alternatives but someone has to be willing to fund those. shery: and at a time when
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there's so much uncertainty surrounding big tech, we are having this ces conference what are we expecting from that avenue? we are not only dealing with challenges, whether it is social media, but these big companies that have suffered or the pandemic, if not benefited as well. maribel: where we are with ces, it is a different time, used to be about the flash of the technology but no one is there. the people who are participating in ces are trying to be more sensitive to the times. many are looking at the possibility of a global recession. if not a recession, certainly a dialing back of what was mass consumerism. what we are seeing at ces is people trying to connect with things that are more meaningful to people, how they entertain their families when they are at home, how they create health and wellness in areas where you might not be able to get out, how we create sustainability and
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inclusivity and technology. those are some of the key things we will see coming out of ces. i do think it is a challenge for people to drive the same excitement and enthusiasm, but also, why do we need more? what will be special about what is coming out now? but i do think we will see interesting intelligent services and great entertainment options. it should be fascinating to see how people connect in this world. shery: we will be watching closely. maribel lopez, thank you for joining us, founder of lopez research. coming up, a push against tesla and international rivals. our conversation with a founder and ceo is just ahead. this is bloomberg. ♪
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autonomous driving and is our first sedan in mass production. of the sedan is close to 70,000 u.s. dollars before subsidies. almost twice the price of a tesla model three. are you concerned at all about the pricing, are you comfortable with the pricing at this level? >> we are always very clear about our target user groups. for example, the price of our to thecompared best-selling midsized or full-size sedans in china, like audi or mercedes-benz. about 10,000re cars per month. our strategy for the chinese market is to provide better products and service for similar priced to gasoline cars. as oncourse believe autonomous car, it is worth the price as the best vehicle in the premium market in any aspect,
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from every detail of his design, internal space the service. to service.space after the launch, many from our user community and media think the pricing is probably a little low. tom: the competition with tesla continues to heat up. et7 assee theet7 -- the putting you in a different class ? william: it is not competing with tesla's model three. if comparisons are to be made, it is more a rival to the model s. it is competitive based on this market position. tom: in terms of deliveries more broadly for nio, december, the numbers were better again, more than 30% year on year in terms of deliveries. do you see that pace of growth
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continuing this year? william: i of course believe china's ev market will continue growing this year. nio is prepared for such growth. china's ev market had a big change last year. the percentage of personal purchase has been increasing, which means ev has become a rational choice for many chinese consumers. we think it is very positive. we are very confident nio has room for growth in terms of our market segment. can you update us on your international expansion plans? what are your priority markets and what is the timeframe? plans towe have clear enter the european market this year. a will gain experience from specific country and region to understand how to commute the
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needs of local users, how to introduce our culture to different countries. from this perspective, we still have work to do. nio -- shery: nio ceo speaking to tom mackenzie. we have more big interviews ahead, from the ubs greater china conference in shanghai. the chairman joins exclusively along with others. plus, we will hear from a peking university professor as well. here is a quick check of the latest business flash headlines. tesla is reported to be looking for a design chief to come up with talk -- with cars tailored specifically for the chinese market. they are looking at candidates familiar with mainland tastes as part of a plan to launch in shanghai or beijing. tesla dominates the electric car
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market in china and the model three in shanghai. three top american banks are to remove some hong kong listed products because of u.s. sanctions on the city. goldman sachs, morgan stanley and jp morgan say about 500 structured products will be affected, but hks insist the market will not be affected. the exchanges says -- exchange says it is working on an orderly delisting but will not have a material impact. -- hastes has joined teamed up with blackstone on signature aviation. firminal deal for the could be worth more than $4 billion. the bank of new zealand is investigating a data security breach which may have put commercially sensitive information at risk. paul allen has the latest. what are we hearing from the rbnz and do we know what data
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was put at risk? paul: that has not been released, the nature of the information that might have been accessed is still being determined. there was a third party filesharing service illegally accessed, it the bank is not saying when it happened, what systems were accessed or how it took place. the government said it was a malicious attack. the rbnz does a lot of confidential information obviously, it is running a 93 billion-dollar kiwi program as well. program as well. it is working closely with domestic and international cybersecurity experts as well. this comes a few months after the new zealand stock exchange got targeted in a series of cyberattacks as well. denial of service outages on that i cash -- that occasion. who is responsible for that is still unknown.
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we will wait to see if we get more information on this attack. shery: what about the people who carried out the attacks? do we know anything at this point? paul: that has not been released either. there are two investigations into the denial of service outages and those reports were not released. who was responsible on that occasion remains unknown. we will wait and see whether the rbnz releases more information once it's investigations are complete. if it does no, it is either not saying or it doesn't know. one of the other. paul allen in sydney with that potential data breach story. the market opening in australia is in a few minutes time. we will look at stocks and sectors we are watching. we continue to watch big liars when it comes to commodities, a slump in commodities prices seems to be weighing on big stocks. the hp group off just about half
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a percent, rio tinto already lagging. iron ore futures trading at about six tents of 1%, a little lower. we have been watching some of the new coronavirus cases come out of a key hub in china. also watching some of the key inflation a trade numbers out of china this week as well. were also watching some of -- we are also watching some of the precious metals, as we see gold and silver tumble. let's take a look at malaysia. we are watching more more travel overnies seeking new funds virus lockdowns and qantas is one of those. they are expanding the scope of their facility. a the next hour, we will take look at the economic week ahead
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♪ haidi: good morning, i am haidi stroud-watts in sydney, we are counting down to asia's market opens. shery: i am shery and in new york. welcome to "daybreak: asia." washingtonts meet in -- top democrats meet in washington over the assault in the capital and president trump's commas before and after and plan impeachment possibly this week.
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