Kong Observatory, Xi Jinping, Crash Southwest Airlines discussed on Bloomberg Daybreak Asia


Kong observatory says it signal three store warning will remain in effect this morning and that it may increase to as much as signal 8 this afternoon severe tropical storm capacity skirting to the south of Hong Kong Gale force winds increasing as it approaches in the northern part of the South China Sea kindergartens have already been suspended As Singapore announces an opening of air travel restrictions there was well certainly interest Singapore airlines website was temporarily down over the weekend as people tried to jump in crash Southwest Airlines canceled more than 350 flights today following a very bad weekend The company says weather in Florida Others are saying it is a staffing shortage because of mandatory vaccination requirements and a pilot sick out The company says that is not true Merck has sought use authorization in the U.S. for its first oral antiviral treatment for COVID-19 Thailand has unveiled a road map to revive its tourism reliant economy by gradually scrapping a mandatory quarantine for vaccinated visitors UK pregnant women who have not been vaccinated against COVID-19 account for almost 20% of critically ill coronavirus patients in England's hospitals China's president Xi Jinping will have a phone call with president of the European council Charles Michel on Friday and Facebook whistleblower Francis haugen will appear before the UK and EU parliament October 25th In San Francisco I'm a Baxter R back to you mister Curtis All right thanks very much It's time now for the daybreak Asian media and tea leaves review We look at some of the top stories in media websites and in newspapers across the region Well for many of you you may have noticed Tencent has bounced about 10% in a week the stock and Alibaba is up about 20% or so in about ten days to two weeks So you might think well the regulatory crackdown in China may be winding down Well we have a report in The Wall Street Journal suggesting that now the banks and their regulators may be the next big target The newspaper reports the president Xi Jinping has ordered an investigation on financial regulators This would be to see if the PBOC and some of the banking insurance and securities watch dogs have been negligent or have grown too close to chummy to the firms that they supervise So we'll be checking this one And also from Chinese state media China's envoy tiangong says this is no time for James Bond theatrics by the United States Let's talk recoupling Chin told Phoenix television in China that the U.S. Cold War playbook should be left to Hollywood blockbusters Trade frictions are normal The key is how to deal with them And that is to look at the media Paul and dug to you All right thanks very much Brian Well we have oil right now trading at $80 and 29 cents to talk about this and other matters and Mike mcclone commodity strategist for Bloomberg intelligence Mike that oil price continuing to gain strength But how long can this continue Because Bloomberg measles also reporting a revival of shale drilling in the permanent Permian Basin in the U.S. now So have we reached the peak here Are we close to it Hello It's hard to tell exactly when the whole short covering issue is going to stop But I think who else putting in an enduring peak like it did from 2011 2014 you just mentioned shale back around 2014 the average cost for U.S. shale was closer to $60 a barrel Now it's $35 a barrel and just it's going to get ramped up It's just a matter of time and demand is flat and has been fun Now we have the highest incentive for more supply and less demand than we've had in 6 or 7 years So to me those major forces that have kept crude oil right now about half its peak from 2018 are just starting to accelerate So I think this is a short term gain in the longer term cure for higher commodity prices in crude oil the main spot you fully expect a year from now the price is at $72 a barrel And in fact I think I'll actually be lower Now that's just looking at the quarter to curve in futures It's very interesting that you attribute the move that we have seen to the upside to short covering Mike and I'm curious whether or not the same would apply to other commodities when you look at natural gas We were talking earlier about iron ore prices being up 50% over the last three weeks coal prices in China now kind of record levels Is the same to be said for each of these separate commodities that we're seeing kind of a short squeeze of sorts Well part of it is that Doug but I think this is legitimate buying my glad you mentioned natural gas Natural gas is what's pulling up most of the sector a lot of the short term issues with supply and on the back of the hurricane U.S. but it's been the worst performing most deflationary commodity in the history of commodities for last 20 years The price of natural gas right now the benchmark U.S. about 5 was first traded about 15 years ago and CPI is up almost 40% since then And the peaks have been around 6 Now it's also this time of year It's getting to November So the market is only price for a bad winter That's the major risk The average cost of U.S. sale natural gas production is around 1.5% and it's trading at 5.3 So we all know there's massive supply that just can not wait to come back on It's the same rinse and repeat That.

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