Bloomberg, LG, Timothy O'brien Bloomberg discussed on Bloomberg Daybreak: Asia
This is a Bloomberg business Black. Let's get you caught up on the market action right now. In Asia Mixed trading. We have markets in Tokyo and in Seoul, moving higher But in Australia, the market in Sydney ASX 200 down about 7/10 of 1%. Australian fourth quarter consumer prices up 9/10 of 1% quarter on quarter that was a bit better than the street was looking for in terms of a gain there, a guessing slight pick up in the level of retail inflation down under Also looking in the soul session at LG Display. It's kind of interesting because the stock right now is trading off about 2.5%, even though fourth quarter operating profit beat estimates. Highest quarterly profit in over three years. It seems that LG display has returned to black for a second quarter in the row with help from increased shipments of the new iPhones, But nonetheless, we're seeing a little bit of pull back, I guess question is how money much of this good news was already discounted by the market. In Seoul. Right now, the cost be higher by about 4/10 of 1%. If you look at the market in Tokyo Nikkei being led higher by material shares the industrials getting a bid along with consumer staple stocks, the Nikkei's up about 6/10 of 1%, although in Sydney after a holiday yesterday market coming back with a little bit of weakness. SX 200 down about 7/10 of 1% some earnings news after the bell here in the states, Microsoft's numbers were above projections thanks to robust demand for cloud services. Stock is up nearly 4% right now, and it's helping to send The NASDAQ 100 a many futures contract higher by a half of 1% so we could see some text strength here in the states tomorrow. Now in many contract up about 10th of 1% similar gain for the S and P 580 many futures contract right now in the Tokyo session. US 10 YEAR Treasury with the yield of 1.4% that is market action. We move to global news next at Baxter's covering it all from the Bloomberg 9 16 years ago in San Francisco, Eddie All right, Douglas. Thank you. New Zealand is to keep its borders closed to the world through the rest of the year. EU plans to shut the doors the travelers from Japan due to the surge, Hong Kong is implemented a second neighborhood locked down another part of the Cologne area. UK becomes the first European country with 100,000 covert debts. President Joe Biden says he's increased the order of Fizer and Madonna vaccines by 50% enough to fully protect 300 million people by the end of summer, Fizer CEO tells Bloomberg US orders have moved the timeline closer. He says the Trump Administration's refuses offers to be able to buy more and just in the past hour on this, maybe well, this is interesting Wording. AP says California seizes control over Struggling vaccine delivery It is going to set up basically, according to the governor on new delivery system by centralizing the hodgepodge of county systems into one along with third party providers. Republicans vote unanimously not to have an impeachment trial. The signals that will be very hard to get the number needed for conviction and Google targets North Korean hackers who says In turn are targeting corporate targets in the U. S in San Francisco. I'm Ed Baxter. This is lumber guys. Thanks. Ed Bloomberg. Daybreak Asia brought to you by New Jersey Institute of Technology ranked in the top 2% nationally for alumni, immediate career earnings and number one for student upward. Economic mobility. You can learn more in J t dot E. D u It's getting out to Timothy O'Brien Bloomberg opinion columnist. He's here to discuss president Bodies plan to raise the federal minimum wage to $15 an hour on whether or not Congress should support higher wages. As an outside of Timothy. I have to say, always a find it baffling when we're talking about minimum wages in the USA are incredibly low, whether or not you take tips into it or not, As you're pointing out here, we should be seeking a living wage, not a minimum. Yeah, 100%. Juliet's incredible to me that the country's country that, uh, economic history and dynamism has been A from the idea of an expanding and robots middle class. Isn't taking the steps it needs in either the private sector or the public sector to make sure that there's the kind of wage that creates a consumer class or above spenders who will buy company's products. Will make markets more resilient and we'll keep the economy moving forward. The reason the government in the United States is stepping into this boy is because there is a void. Private sector just isn't Nothing up to deal with this issue, And it's not because the money isn't there. We've seen some smaller jurisdictions, cities in particular that have been enacted $15 an hour minimum. What do we know about the success that were perhaps failure of those initiatives? Well, I mean, I think Seattle is famously one of the ones Jurisdictions that did that Doug and I think for a long time there was, um And economic bias that said, if you raise the minimum wage is actually anti job growth, But it will. It will convince employers to hire fewer people, and it has a negative impact. The reality is this has been looked at now. In a very robust way by economists, and that's simply not the case. In a lot of situations. There are certainly targeted employers in different parts of the economy, particularly Very small business owners business visitors that are recession battered or businesses and very, very poor areas. But for the most part most large corporation Large company can afford to do this and the track record of companies like that doing. It has been very good. It has not caused the job market to tighten. And it is it has Created new class of consumers and you know, there's there's some history here. Remember, Henry Ford was famous for paying $5 a day wage. Back in the 19 twenties that is plant in Detroit and his other competitors said You're crazy for doing this, and his response was Those people are going to become my customers. They're going to be able to buy more of my cars. I think that's a truism that we shouldn't forget it. It's a valid today as it was back then. You make an interesting point about despite whether or not cos can afford to pay this minimum wage, not paying. It can lead to greater stress and greater economic ramifications, too. So where do you think we stand here on Congress coming to support at this minimum wage? Well, it's tricky because the binding the $1.9 trillion coded response plan that the by administrations put on the table has a lot of pieces to it. The minimum wage is part of that, and I think Republicans Have raised good questions about whether parts of the plan has been thought through an upset. Some Republican senators have raised the issue of whether or not people making $300,000 a year or in that range need to be actually getting a supplemental payment from the government to tide them through the cove In 19 crisis, I would argue they don't and I think questions like that are healthy. Um are healthy questions? Uh, There's a lot in here that I think most Republicans aren't going to stand up for And so the part of the issue here is do you pair the package down in order to get it through or do they do? Democrats Try toe force it through. There's something like a A budget reconciliation, which is possible. Yeah, It's not clear to me whether or not this would meet the criteria because it's not directly linked to spending and I don't know much about the parliamentary procedures that happened in the Senate in the rules. Where is corporate America? When it comes to the notion of $15 an hour we've talked on this program about a few chief executives that aren't necessarily negative on the idea. Well, and I think you know the business Roundtable for one who has Said that it supports the goals of a higher minimum wage..