iron ore accounting for 85% of rio tinto's profit.at iron ore price does get above $200 per ton, it is not sustainable and it is bound to reduce. shery: prices for copper hovering near record highs. what is the supply outlook right now? paul: there are some risks there. the biggest copper mine in the world, which is run by bhp, there was a threat of strike action hanging over that. as prices rise for copper, workers want a bigger share of the action essentially and they are calling for an additional bonus which will be equivalent to 1% of dividends. bhp made a counter offer. what we do know is that leaders are recommending that their members reject that offer, saying strike action is the only tool remaining available to us. that is a credible threat because the workers have gone out before, back in 2017. so a vote is due on july 31 so we could see a bit of action in the copper price in and around that day. haidi: we are watching macquarie going to the start of trading in sydney as well, saying that -- when it comes to the annual polic

paul: also pretty good but a couple of things here, some of which rio tinto can control. ing commodity prices. iron ore around $150 a ton for the period, tyrosine then, hovering during -- pushed higher since then. that is largely dependent on ongoing demand from china. rio can control those costs. this is something the city has been looking at quite closely, concerned about prices rising. worker shortages and rio tinto also dealing with industrial action at its aluminum smelter in canada so if you shares there as well. haidi: paul allen in sydney. staying on earnings, shery mentioned on starbucks, quarterly results beating estimates on a strong u.s. recovery but slowing china growth dampened investor mood. restaurant success rose 73% but in china, they were way below estimates. the results highlight a challenge for starbucks as it rapidly expands in the chinese market. it has 5000 locations in the region and it is planning 600 new ones this year. microsoft reported sales that exceeded estimates for a 10th straight quarter. shares sent to lower in late trade. sales rose 45%

keeping a close eye on rio tinto.infrastructure on watch, this as the kkr led consortium has its bid allowing the talks with spark. head of cpi data is due from australia. aussie dollar has a little changes morning. we have the offshore u.n. holding above 662 as we saw the volatility jump for the currency. and we are seeing angst show up in opsin -- option trading for the u.n.. 654 may be the level to watch. we are seeing nasdaq futures under pressure as well. this as the anxiety over the china tech rout continues. haidi: it does continue. our next guest remains neutral on china. that's valuation relative to broader em is not cheap. joining us as the portfolio manager for e spring investment. if you take a look at where valuations have ended up over the past best part of the week, you can see that it kind of started on friday. does the valuation picture change when it comes to your views on china assets, or does it reinforce across developed markets? >> good morning. when you look at the valuations, particularly price

rio tinto plans to send $2.4 billion to build a lithium mine in serbia. rio reported first half underlying profits below estimates. the mine will be one of the largest industrial investments in serbia, contributing 1% directly and 4% indirectly to gdp. president biden is planning to require all federal employees to be vaccinated against the coronavirus, or submit to regular testing and mitigation requirements. cnn says the announcement could come later today. u.s. health officials are recommending fully vaccinated people should go back to wearing masks in some indoor settings. the reversal from the cdc comes as the delta variant continues to threaten. that is the bloomberg business flash. anna: let's quickly check on the share prices of banks reporting today. santander moving to the downside 0.8% despite strong headlines they will outperform the 2021 profitability targets. they have a better-than-expected credit cycle, are comfortable with the capital position. the stock moving lower. deutsche bank and barclays moved to the upside. we had a long conversati

in its statement, rio tinto said an escalation in the security situation had led to the decision to suspend operations. here at richard spain, minerals, the company went on to say that the safety of its employees and staff was its top priority. richards, bay, minerals, mines and exports, titanium dioxide flag, which is used in products like paint plastics and toothpaste. its the biggest taxpayer in the province and employs about 5000 people the people in. so, hulu are demanding change. they say they have a mine in the backyard, but they don't see any benefit from it. i. well, we should. i mean, if that's a demand should listen to us and appreciate it. when we ask for some intervention from them as a mining company. if we ask for help, they must pass for now the mind is idle. without a clear social and labor plan, it looks like the longer it goes on, the harder life or get the you're watching did of the news africa still to come. the job of faith symbolizes the hope that africa will one day have the mascot, 900 vaccines for everyone. but fast to the youngest country in the world, south to do

in a statement, rio tinto said an escalation in the security situation had led to the decision to suspend operations. here at richard spain, minerals. the company went on to say that the safety of its employees and staff was its top priority. richard, bay, minerals, mines and exports titanium dioxide flag, which is used in products like paint plastics and toothpaste. its the biggest taxpayer in the province and employs about 5000 people the people in. so, hulu are demanding change. they say they have a mine in the backyard, but they don't see any benefits from it. well, we should, i mean, if that's a demand should listen to us and appreciate it. when we ask for some intervention from them as a mining company. if we ask for help, they must had a pass. for now, the mine is idle. without a clear social and labor plan, it looks like the longer it goes on, the harder life or get the watching deed of the news, africa still to come. that job of faith symbolizes the hope that africa will one day have you not school, but 19 vaccines for everyone. by fast to the youngest country in the world, south

rio tinto plans to spilled 2.4 billion dollars building a lithium mine in serbia. biggest producers are finding themselves more cash to invest as many boost record profits on the commodities rally. rio reports results on wednesday. david: a brief check across the markets. a quick look at your top 10 and bottom 10 right now. give it a minute to load here. volumes are quite substantial. we are looking closely at the philippines, down 2%. we have broken that level. we will see what happens. plenty more ahead. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back

rio tinto plans to spend $2.4 billion building a lithium mine in serbia as more big miners into the metals tied to green energy, finding themselves with more cash to invest as many books record profits on the commodities rally. mine will be one of the largest industrial investments in serbia, contributing one person directly and foreperson indirectly to gdp. 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. this is bloomberg. manus. manus: thank you very much. we started the conversation with adecco but the interviews run throughout the morning. ecuador -- our guest will join me this hour. i want to look back at deutsche bank because this is important because in many ways, my favorite word is -- as he lifts the revenue target, he dodges a trading some, he abandons cost cuts. this is a bank -- quite literally almost had a for sale sign over the front door barely a year ago. so what you have got here is really trading performance, 43% decline by the u.s. banks, and here you are delivering much, much

david: in the asia-pacific, rio tinto out with results. they hit a record high, missing estimates.are looking at the names and japan, we were talking about the olympics and what has happened has boosted an unusual group of stocks over the last week. park 24 essentially runs parking lots around japan and some of its employees were also part of the judo team and they won gold. i think that is why they were going long on the stock. yvonne: that is amazing. you have to do so much due diligence to find olympics related stocks. shout out to my girl getting into the in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. yvonne: 10:29 a.m. in hong kong and shanghai. we see asian stocks -- what

see lsa -- clsa has a rating on rio tinto as well. we will be hearing initial interest. said to be coming from a waste management company. much more ahead on "daybreak australia." this is bloomberg. ♪ shery: take a look at emerging-market currencies because we are seeing the support right there and emerging-market currencies at the highest level since november. it is the best day and we are seeing some support ahead of going into august which is historically a very bad month and it comes to high-yielding current. this as we have the u.s. dollar at a three week low. right now, we are seeing a little bit of pressure for the turkish lira and the south african rand but this only as the turkish lira is trading at around the highest level since mid june. we have the central bank really upgrading that inflation forecast and the south african rand curbing the longest winning streak since mid may or so. we have seen the riskiest assets getting abused given the fed's dovish statement earlier this week but really, it's about currency strength when it comes to emerging markets. take

liz: you have got to imagine the names of the materials like rio tinto, u.s. steel, these are the commodity names that truly stand to do quite well because they have pricing power, do they not? >> yes clearly phil is right in one respect you want to own the companies that have the ability to pass along price increases as abc price increases there are many companies that have the ability to do that, on the other hand if i heard chairman powell correctly i think he address the whole issue of inflation yet again and he still insists it's transitory and he even drilled down a little bit to explain what he meant by that, i guess it's a case do we want to fight the fed or believe the fed, yes right now we have a lot of inflation but it remains to be seen where we will be six-month or two years from now on the other hand what you don't want to own up or in an inflationary environment are the transportation sectors, the utilities, consumer staples in particular you don't want to be in names where there's a lot of government oversight or government regulation in terms

rio tinto. anything in the mining sector is ripping today. these guys are no exception.eeing a lot of january calls, 10,000 of the january it's a strange strike. 9657 is the strike price, i know, but they bought those calls, 10,000 of them with the stock at 89. second one, workhorse. it's down 35%. just in the last month or so earnings are going to be august 9th. they are an ev-maker i showed the aug 14 calls. and that's after a big sell-off. so maybe they do see a little bit of a pop here, scott, over the next couple of weeks >> doc, you have shares and calls in amazon. what are you expecting and does the way the other big mega cap techs have traded after their numbers give you any pause about what you think could happen on the other side >> i guess a little bit, scott, but right now, i am short the 3700, 3750 and 3800 calls. against long calls and long stock. why have i done that because i don't know if we see more than $100 pop if we, do i'll give up that upside beyond that, but i'm taking in a lot of big, fat premium on those short calls >> okay. we'll see where that

we heard from rio tinto yesterday. they were a little cautious on the outlook for china.as if you share any of that caution. do you see current levels of demand in china as sustainable? mark: i think the caution, i understand it. what i am saying is that i still think, from a supply-side, things are a bit tight. i think for iron ore and coal, it might be a little tighter. copper is undersupplied, pgm's are undersupplied because china needs more precious metals to deal with this environmental obligations. diamonds continue to improve in terms of demand. our portfolio is a little bit different than rio. for us, we think the prognosis is a bit better. anna: ok, so that's your assessment. let me ask you about the cost side of things, because many people watch your business for clues about where their costs will go, but you also watch your cost inputs. it seems as if we have seen a bit of a jump in the first half on the cost side. have you got a handle on that? is that a temporary inflationary impulse? what should we expect to see? mark: i think three factors. firstly, i make

look at how they've done tim's acronym has been the strongest, that would be rise, rio tinto. that was up more than 21% so far. dan here chose abide, which would be amazon, alibaba, ipoc, the spac, clover health, disney, expedia, that's up 5%. and rounding out the acronyms, karen's, wtf, not what you think it is, walmart, tj max, fedex, up 3%. what are the themes that have worked so far this year, what is going to rule in the second half of the year. dan, i'll throw it to you. you're in a solid second place there. >> not so solid. we had the s&p 500 close up close to 15% of the year so up 5% just shows you how difficult stock picking can be at times. i was really interested in amazon, and alibaba, really disappointing. when you think about it, that seemed like a layout for this consumer that is in great shape, both here and probably abroad, that didn't work particularly well disney reopening trade, again, it is basically flat to down a little bit on the year and then you have something like expedia which worked really well and then, you know, on the spac side, that's fits and

rio tinto. we like electric vehicles.aker that continues to do well. we're looking to buy some of the cyclicals on these dips. there is a lot of good stuff out there. some of these are because earnings are going to grow the valuations are coming down making them more attractive. ashley: very good. listen, you've been a big part of the varney show for many years, shah. i want to give you the opportunity. it is stu varney's birthday. we're getting all our guests today to send him a message. would you love to give him one, shah? >> i would love to. happy birthday, stuart. you're one of a kind, the kind being the best. ashley: everyone has been so kind. shah, thank you very much. you've been a part of this show so long, great to see you. thank you very much. >>> look at this headline, biden is no reagan. we should leave it at that. here is the real reason the economy is recovering. the author of that op-ed is liz peek. she joins me now, another long term friend of the show. good morning to you, liz. lay it out for us. what do