♪ shery: welcome to "daybreak asia." todi: we are counting down asia's major market opens. wall street ended december with revived stimulus talks and vaccine optimism. the dollar slides to a two-year low. supports of new fiscal rise. jay powell and steve mnuchin

want action to stop the virus fallout. nato calls for international cohesion on security. consumer price inflation breaking out of south korea. we are seeing month on month deceleration of .1%. the deceleration, though, is easing from the previous month when we had been pulled down and undershooting inflation numbers because of subsidies from the government. also we are seeing acceleration of 0.6% when it comes to the euro. slightly missing estimates, but when you seek out fresh food and look at the core cpi numbers, it is still growth of 1%. of course, we still have some spare economic capacity in south korea, but remember the third quarter final gdp numbers actually beat expectations, and

still, inflation numbers are very much away from that target coronavirus pandemic raging across the world. haidi: we have just had the beginning of the testimony of the rba governor, appearing before the economics committee today, so be watching out for some of those, particularly regarding news on the aussie dollar. this expectation that given we are seeing the greenback again languishing at two-year lows and some of these commodities could seeurrencies further surges. strongsie dollar holding but still shy of that $.74 handle. new zealand keeping on track with modest gains as well. tory: modest when it comes the futures market as well. u.s. futures not doing much, but

this after u.s. stocks saw a record highs already in 2020. the nikkei under a little pressure, but this coming at a time when it also rose to the highest level since april 1991, so the bar is set ready hi. the japanese yen holding steady, and we are now seeing oil prices under pressure again. of course, we don't have any more clarity from opec-plus. despite the fact we are seeing some modest gains so far, we, of course, have seen the global market marching higher, equities rallying. they have a couple of factors in their favor according to our next guest. she joins us from boston. of course, easy to imagine that one of them is coronavirus positive news on vaccine cases. what's the other? what is propelling these markets higher? >> remember, there's two main

macro developments we have seen as of late. one, as you mentioned, is the positive news on the coronavirus vaccine. if you have three consecutive mondays of positive good news. we have now seen pretty firmly this commitment to easing globally, but particularly, we know the u.s. federal reserve will be on hold for a while and imply thattments there will be room for easier and more accommodative policy that should have brought effects. shery: no wonder we are seeing inflation expectations rising, right? projection show the 10 year at breakeven level for the first time in a year, but at the same time, we are seeing yields being depressed. is there really hope for the liquidation trade? >> i think we are still hoping for some sort of liquidation trade led by a recovery. we certainly have seen yields start to price in that dynamic,

and i think globally what we're starting to see his little hints of inflation popping up. concentrated,r but it could end up being something as we start to see prices return alongside more momentum and economic activity. when you look at the different components that make you.m. asia, where do diversify when you look at opportunities to pick up some bargains? >> i definitely think north asia has been the focus of all their previous conversations with china pretty well baked in at this point. certainly one of the only regions expected to grow on the year. we aresame time, i think actually looking at a point where some of those other asian countries between india and indonesia can start to catch up

with a broader group and reclaim their standing within their peer group. we are looking at the higher that diversify varying levels of risk on the back of these developments. >> we talked a lot about the dollar weakness. that is a massive push going into next year, but how important is it that we keep this sustained rally? >> yeah, that is also incredibly important. those are the two most impact -- most important factors for e.m., particularly now. there seems to be an easing of expectations that the trade war will continue to be a main factor, and that seems to have materialized on top of some of the economic data. certainly, that has run a pretty does seem like some of this strength is

well-founded and justified at current levels. haidi: when you take a look at the really crazy year that has look at 2021,you what do you think investors are not looking at? >> think the case i have laid out thus far is pretty bullish. one certainly in my mind his inflation. i mentioned that earlier, but also the prospect that emerging markets could lead to central banks and they will do slightly less than they would like to, and the second case is more fiscal policy out of the u.s. where we could face that moment where some of the cares act programs expire and the new administration will be coming in to try to negotiate new plans.

either ofointment on those fronts i think will because for concern. always great to have you on. we are hearing from the rba governor, delivering his prepared statement to the economic committee today, saying the recovery will be bumpy and worn-out. he says he expects growth to be positive for the third quarter of 2020 as well as the fourth quarter of 2020. where getting third quarter numbers in a couple of hours' time, and we are expected to see the economy lifted out of recession. he also says he sees the economy as having turned a corner. we will continue to watch to see what kind of commentary he gives , particularly if he decides to go off course and make any comments about the strength of the aussie dollar. let's take a look at this

one stock, which is seeing double digit gains at the moment after getting fast track designation. they devised a therapy for covid-19 that can be used up to to treatlators respiratory impact of covid, and they just said the phase three trial is approximately 2/3 enrolled, and they have fda wet-track designation, and saw gains surpassing 16% at one point. haidi: let's get you a quick check of first word headlines. a new survey sees the global economy back to pre-pandemic levels by the end of next year, though it says the recovery will still be uneven and risks remain. the group says the outlook is improving for the first time since the virus appeared.

>> on the face of it, our projection for global gdp growth vigorous,.2% -- looks but this would still leave economies oecd 2021 than the end of they were at the end of 2019. trump will host a vaccine summit next week as ways ideastration for distributing shots. the president claiming personal credit for the vaccine's progress, saying he came up with drugs no one expected for five years. surging virus cases in hong kong have grounded plans for travel until at least next year. the city says the decision has

been prompted by the severity of the situation with a number of local infections increasing rapidly. it has been seen as a template as other global bubbles airlines seek to emerge from the devastation caused by covid-19, and those are your first word headlines. shery: still ahead, efforts in congress for coronavirus really gain a small number of votes. plus, bitcoin's drop from an all-time high. gary cohn says it lacks basic integrity. we will ask what believers and nonbelievers are saying ahead. this is bloomberg. ♪

>> first of all, the economy has actually performed better than expected. it has been more resilient to spikes in cases than expected.

nonetheless, we do have a long way to go. >> i continue to believe that a targeted fiscal package is the most appropriate federal response. i strongly urge congress to use the 455 billion dollars in unused funds from the cares act to pass an additional bill with bipartisan support. >> what we're hearing is there are a lot of small businesses that are at risk of going out of his nest during this winter. i think those small businesses need grants, not loans. my decision is a legal decision, not an economic decision. congress can reauthorize this money. >> some of these businesses, what they need is fiscal policy, a grant to get them through this last of the pandemic rather than borrowing more through a federal reserve facility. haidi: that was fed chair powell urging the senate to pass more

stimulation. what stands out from this testimony, other than the fact that we were all watching for signs of tension between the two men, but it seemed like they came to present a united front on what the economy needs going into the end of the year and the ?tart of next year >> that's correct. both were saying we need more fiscal policy. what was interesting was secretary mnuchin said he is talking to republican leadership and the president himself about getting some momentum on this. powell did not recommend any sort of kind of fiscal stimulus, just more fiscal stimulus, as he said, to build another span on the bridge to get us through the pandemic and to a vaccine. what does that mean to the moving of the funds, 450 $5 billion, and ending those lending programs by the fed? did we get anymore clarity on

what is happening there? >> i think the outtakes you presented at the start of the show were really quite good. you heard both mnuchin and these smallhat businesses need grants. they don't need loans. a lot of the dialogue around part ofcilities on the members of congress was there is a need -- well, actually, borrowing has not been really huge in some of them. it has been moderate at best, so i think it might be true that small businesses don't need debt now. they need some other form of help. could that help come in the form of another stimulus package, and when could we see that being approved by congress and the president and secretary mnuchin? >> good question. after these remarks today by

these two gentlemen, our reporting did show more momentum by both parties to get something done. there's a republican proposal. there's a democrat proposal. they are starting to circulate. somefinitely need unemployment benefit assistance and maybe another round of this program, the paycheck attraction program, which in effect is a grant to companies if they promise to keep employees on the payroll. our bloomberg fed reporter with the latest. the past year has shown spotlights on racial injustice in the u.s. with calls for equality growing louder. the first minority-owned asset management firm with more than $12 billion in assets says wall street has an important role to play. the chairman and co-ceo john rogers spoke exclusively to bloomberg. chaired president

obama's counsel for financial capabilities, one of the recommendations we gave was we wanted natural institutions to partner with urban public abouts so kids can learn the stock market, learn about lucrative financial services careers. the second thing financial institutions can do a much better job of is working with minority-owned companies or making sure when they are out there, they spend billion's of dollars, investment banking services, advertisers, marketing, all kinds of things these institutions spend money on, they should be spending that money on minority-owned companies and being able to create wealth for minority communities throughout our country. that is critically important. finally, we have the first professionals on their relationship with financial institutions, and that added demand to make sure a lot of

folks get hired for the first time and interact with the financial industry. >> you talk about your work with former president obama, but we have joe biden here announcing a people in high-level positions, some women, some people of color, but what can they specifically do? what would you like to see them do more immediately to help close the racial divide? >> one of the things the federal government can do and president biden will be able to do is use the bully pulpit to do the same things like harold washington did when he was mayor of chicago, to push hard for the federal government to do business with minority-owned companies in everything we do. you know, the federal government controls the pbgc. they hire lots of money managers. they control the kennedy center and the smithsonian which hires all kinds of folks. the national railroad trust. transportation

overseas airlines, train companies, and all the rest, pushing companies to do the right thing. realll be able to create wealth in our communities. i have seen that work beautifully at the university of chicago where they work with 95 professional services firms, up from zero 12 years ago. it's creating multigenerational wealth. the president can do that. his team can do that and make a real substantial dent in this wealth divide that has gotten worse and worse. >> we have a couple seconds left, but in the middle of this eight negotiation, is there anything specifically you think communities need more immediately? >> we desperately need to get this stimulus, to get people back at work and those small businesses and local communities because they provide jobs for people who are out of work today, so i've got my fingers crossed make progress on this

legislative initiative. that was arrow investments' chairman and co-ceo. today australia joins talks. we have the latest next. this is bloomberg. ♪

anotherato has taken step toward making china strategic focal point after the military alliance published a report stressing rising geopolitical threats. the details inas beijing. what exactly is that nato report saying? tom: it was put together by a group of experts that were assembled by the secretary-general of nato. it is essentially a wake-up call to the 30-member alliance that is nato to focus on the

, andenges posed by china what that said was there needs to be more of a focus on these issues as recommendations within this study around, for example, enhancing political cohesion within the alliance, investing more time and action that they say are linked to china's economic heft -- i'm quoting here -- and the stated ideological goals of its leaders. it is showing that the nato alliance is broadening that focus beyond just russia, which historically has been a security threat for the alliance, to now including china. how realistic it is you will get these recommendations .mplemented is a key question it has been put under pressure because of trump's go would alone approach. there will be hope when the biden administration takes over toward the end of january that that may lead to greater consensus within the alliance and the ability to face up to some of these challenges. later today, by the way, nato

will be holding an online session with some of its asia-pacific counterparts -- .ostly australia and japan of the ongoing tensions we continue to see, it is interesting because this is part of the rogue warrior diplomacy tactic beijing has taken for a long time now. tom: it is. it does not play well abroad, and you have seen that reflected in responsys from u.k., new zealand, and the u.s. as well. but what this wolf warrior diplomacy does is play well at home. we have seen that reflected on social media. of coursee diplomats refused to apologize for the tweet that was put out of an australian soldier holding a knife to the neck of an afghan child. the prime minister calling for

an apology. that has not been given. chinese officials doubled down and questioned if morrison lacked a sense of right and wrong. you had headlines and editorials calling australia people. this place to that domestic audience, which is increasingly -- increasingly nationalistic. here feel many people slighted by the pressure that the trump administration brought to bear on china over the last few years. this kind of language, this kind of rhetoric does play to that domestic audience, but it comes to a cost, that loss of soft power on the international stage for china. you a quick get check of the latest business flash headlines this hour. salesforce agreed to by slack technologies for $27.7 billion in cash and stock, the biggest ever acquisition by salesforce.

the agreement represents a premium of 55% to slack's price just a week ago and is expected to be completed in the second order of next year. china's number two smartphone maker is seeking as much as $4 billion. xiaomi is selling one billion of up to 10%mium on mondays close, saying it will use the money to expand market huawei.om j.d. health will start trading on tuesday. shares -- the medical sector has seen a record wave of listings in asia this year, led by strong demand amidst ongoing coronavirus pandemic. we will be speaking to

the general manager of ibm in the asia-pacific on the future of dizziness post-pandemic as well as the chairman of -- the future of dizziness -- the future of business post-pandemic. ♪ it's down to the wire,

the team's been working around the clock. we've had to rethink our whole approach. we're going to give togetherness. logistically, it's been a nightmare. i'm not sure it's going to work. it'll work. i didn't know you were listening. in a on the most reliable, pnetwork with xfinity mobile. they can choose from the latest phones or bring their own. and because they get nationwide 5g at no extra cost, they live happily ever after. again, again. your wireless. your rules.

your way to stay closer together this holiday season. switch and save up to $400 a year on your wireless bill. and get $300 off when you buy the samsung galaxy note20 ultra 5g. learn more at xfinitymobile.com. ♪ haidi: daybreak: asia. ofsident trump's hopes overturning the election results have been weakened after his attorney says there is no evidence of significant fraud. bill barr says the doj has not uncovered anything that could mean different results. he is more of the president's most staunch allies and reportedly claimed for the election that widespread mail in ballots could mean fraud. the is bowing to avenge death of its top nuclear scientist saying it will deliver maximum pain to those response

will for his killing. he is seen as the father of their nuclear program. time, tehran says it will end inspections on its nuclear facilities next month. thailand could see the prime minister removed from allegedly breaking the law. the constitutional court will decide later today on if he violated ethics rules by continuing to use military housing after he left the army to become a full-time politician. the opposition claimed that amounts to a special benefit. the pm says he is not worried about the ruling. the indian government has open aboutwith farming leaders new agricultural laws. tens of thousands of workers

have gathered outside of new delhi demanding the administration backs regulations. the meeting ended inconclusively with farmers rejecting an offer. those your first word headlines. at the asianlook markets. look at the aussie dollar holding. a recovery is expected. noting that negative rates are looking unlikely. when it comes to the share market, one let higher by resource names while banks are under pressure. jumping to a four-month high after being upgraded to outperform.

stocks higher, bonds lower following the jump we saw an treasury yields on u.s. fiscal stimulus cues. the aussie tenure yield at the 1% level. but futures under pressure, treasury futures are nudging higher. gold is looking little changed. saw itlar weakness we come back into the freight. the euro staying above 120. nikkei futures in singapore opening higher this morning. watching for more lines from local media that japan will not require vaccination of visitors for the tokyo olympics.

and south korea come at the parliament is set to vote on the 2021 budget as well. >> salesforce has agreed to by slack technologies. we are joined by energy -- emily chang. >> thank you so much. marc benioff the ceo of salesforce. thank you so much for joining us. after announcing the deal, you said it was a marriage made in heaven which is quite a romantic analogy. why are you describing it that way? know salesforce talent -- tower and salesforce park. my neighbor is slack. stuart and i have had a great relationship for years. the companies have had a great relationship.

so many of our former executives are there. this marriage of slack and salesforce, you said it's a marriage made in heaven. we cannot be more excited about it. it transforms our company's vision and lets our customers work from anywhere. it's the most exciting thing i have been through. >> many people are looking at this as a defensive move against microsoft. what is your response? >> salesforce has never been stronger. we developed -- delivered a phenomenal quarter. do $25.5 billion in revenue next year. salesforce has never been stronger. when you look at slack which is tremendously fast growing company but has a breakthrough technology, the ideas you can collaborate and have channels.

we have integrated our products already. the idea that you can have a next-generation work from anywhere environment runs on my phone runs on my ipad, it's amazing what is possible for me here. stranger to deals. slipped when reports of this deal first broke. there are folks who think this is just too expensive. what is your response? >> it's a common narrative. i have done 60 deals. some of the largest deals done in the technology industry --luding we have also done an incredible transaction a couple years now -- years ago with tableau. there is tremendous market share gain there since we acquired the

company. the deep integration with their customers and here we are with slack. playbook, which is going to execute it. were going to deliver tremendous value to our global customers. >> you said you are always out there looking. how long of you been thinking about buying slack? did you think about this before? >> i didn't think we were going to get any deals this entire year. i'm at home, you have been at home. using salesforce, slack, and zoom is my life. when totally shocked chief operating officer have known each other for a long time. they said hey we can bring these two companies together and they

showed me a vision that is so compelling. our customers going to be so inspired by what they can do from productivity, the level of customer success. one of the things that has really happened this year is our customers badly need so many of our core products. had so muchwe have sales growth this year. this is really powerful. the ability for you to sell to your customers using our technology. this weekend, we processed millions of orders. are seeing a huge digital transformation. we are seeing the pandemic accelerate. the digital world and especially the dim -- digital world with customers, slack is going to be the icing on the cake making everything better. >> there's another metaphor.

will he havenomy and will he be reporting directly to you? >> stuart is going to be staying at slack. the exact model, that's going to be up to brett taylor who was driving the whole vision and transformation of salesforce. he is our chief operating officer, i think you know him very well. he is thed quit and former ceo of facebook and his executive. >> talk to us about slacks personality. it is very popular user interface. how will the experience change under salesforce? experience is going to be augmented by the data, the workflow, the collaboration. you are already using, like i said i always use salesforce every day.

i do my analytics with tableau that is integrated. now, all of that is appearing right inside of slack. when i saw the original demos and prototypes of what the two products look like together, i said i'm going to be much more productive. i can work from everywhere and i'm deeply connected in all of my customer experiences. they have a unique product called slack connect. you are integrated with your customers during this. i'm thrilled and i am so happy to be able to tell you this today. excited since i first heard of the potential to get something like this done. did try to build slack from within with chatter. it didn't necessarily take off in the same white. what do you think -- in the same way. what did you think about the desire to do these deals?

what does that say about salesforce's ability to innovate or buy versus build? >> you have such a great memory. we have a vision of a social enterprise. dream force is tomorrow so i hope you will turn in -- tune in. dream force is built around the social enterprise. the idea of collaborative user interfaces, applications, collaborative ecosystems built on top of these huge customer data links. the idea that this was possible, this was always our dream. we built chatter, but that was way before slack. now slack has to come along if the vision of collaboration, but they have added things we never could have imagined especially with how they have integrated into everything like zoom. you are able to have these great new productivity environments and i think customers going to love it.

benioff, inc. so much. >> always good to be with you. happy holidays. >> we will be watching to see how the marriage plays out and if it is a happy one. chang there in san francisco. let's get you some other breaking news. we are continuing to hear from economic committee testimony. with was a disruption having to have a temporary suspension with a vote take -- taking place. we are now getting to structural toorms as well as questions whether the banks qe program will be extended. we heard that they will not be adjusting rates. two-3%on is in the range. he talked about the patching is

of the recovery we are seeing although he thinks the australian economy has turned a corner. we are getting numbers will be expected to reflect that later today. he is saying the first step is to build a bridge past the virus. now to build a road to recovery. also that it's not appropriate for the rba to target asset prices. we will bring you the latest as we get them. this is bloomberg. haidi: credit traders could be looking at the biggest pay increases compared with under -- other trading desks after what has been a banner year. credit traders are poised for a 16% jump in compensation.

let's get more from our finance reporter. why are credit traders poised to see the biggest gains? it feels like there is a rule bifurcation in how wage increases in some instances wage decreases or pay freezes at the same banks. >> that's a good question. this is a weird year. theing was massive and marketing units carried the team. they were simultaneously setting aside billions of dollars for potential loan losses. it was a divergence within banks. there was a search and activity in the markets. they plunged then rebounded. credit debts and a fitted -- benefited. that's what is putting them at the top of the list as far as

who's pay will go up. >> with this in line with what traders were expecting? >> their revenue shot up. the bonus are expected to increase as much as the revenue did. they might be a bit disappointed, because their expectations are high. this has been a huge year. the five biggest u.s. investment banks are on track for their first hundred million dollar year for trading revenue in a decade. they will get bonus increases, but the bonuses are poised to increase as much as the revenue itself. >> citigroup has long been eyeing a move up in the equities league. are they doing really is a customer >> yes they realized there equities division to revamp their sales. this is part of their long time quest to get bigger in equities.

it has been years of investing in the business. they brought in a new global executive. >> that was our bloomberg finance reporter. we are getting the latest from xiaomi. selling $855 million in seven-year zero-coupon convertible bonds. raising $4 billion and this as they are adding to a warchest aimed at expanding its market share from huawei. this is bloomberg. ♪

>> bitcoin is probably the hardest of all that. there's a very restricted supply even more than gold. investors are finally tuned into the fact that this is the way of protecting the value of their money. >> people are worried that the central banks are debasing fiat currency. >> you're seeing the demise of cash and more and more digital forms of payment. >> it has been going up at a compound annual ruth rate at

209% for 10 years. my forecast is it will keep doing that. >> i'm not a strong believer in that coin. you don't know who owns it or how much exist today. there is an intangible behind. at least when you buy an ounce of gold, you can deliver announce of gold to somebody. >> bitcoin taking a breather from the record run we have seen. joining us now is a chief market strategist. great to have you with us. isrehash the question, why it different this time? is it different this time? >> what has happened between 2017 and now is that there have been changes in terms of the regulatory environment. as a result, that has allowed larger more institutional

players to get involved in the market. on the payment side, we are seeing companies like paypal and square allowing they are to him -- customers to transact in bitcoin. then we are seeing investors like fidelity and guggenheim partners have indicated an interest of having a significant portion of their assets in bitcoin. >> the two concerns that a lot of critics have over this bitcoin rally, one is that the market is dominated in terms of holdings by a handful of big whale bitcoin investors. the other is usability. you can't get out of the store and buy something with it. >> we think what paypal has offered to do in terms of allowing transactions to be settled in bitcoin is a significant move forward board

making bitcoin more of a unit of exchange for day-to-day purposes . that doesn't make anything different as far as the volatility is concerned. at least you know when you could enter the store and you have a dollar in your pocket, you know what that's worth. with the bitcoin, you could be going to the grocery store or restaurant or what have you and you wouldn't know what exactly it was you had until the you came time to transact. the value.lk about we are seeing this saying that the bitcoin to gold ratio is the highest since 2018. are we seeing a shift from gold into bitcoin and could it eventually replace gold some point? >> certainly, the speculation has been the bitcoin is effectively digital gold. one might argue that with bitcoin, we know there's going to be a finite quality -- quantity produced.

gold still continues to come out of the ground. this, weof looking at have seen flows out of gold etf's as of late and moneys's have been going into bitcoin. we have not gotten to a point where it is appreciably higher. if bitcoin were to be worth 5% of the value of gold right now, it would be proximally 30,000. however, we think there are numerous constraints that still stand in the way of bitcoin rising to those levels. one of those is that central banks themselves have started to experiment with digital currencies. the same time in terms of the traceability of transactions, most governments like to know who is getting money and how and from where. bitcoin has offered anonymity in that regard despite the fact the transactions are recorded with blockchain. you have a desire on the part of governmental and monetary authorities to see how money is moving around and his doing the

moving. >> on your point with central banks getting involved, we have seen the pboc supporting this. what do you think of the chinese digital currency and could there be a risk that it ends up supplanting bitcoin and other cryptocurrencies? >> it is a bit of a conundrum. if we look at china and how electronic payment means of solomon -- settlement have moved the society away from cash and more towards digital, it makes sense in terms of what the pboc is doing in terms of digital currency. the other part of the conundrum is that it speculated because the mining for bitcoin earlier was being done in china. large-scale those holders will be in china. with regard to how the pboc is going to affect those individuals and other holdings, it may raise some difficulties not necessarily the same but the pboc will make

its presence felt in the market. is it possible to talk about fair value going back technical's for bitcoin? >> i know that some people have been using technical analysis against bitcoin saying that things appear to have been overbought. think what we need to see for bitcoin to make a further move for the incoming administration and the u.s. to put in place further fiscal relief programs. which requires the collaboration of congress. it also to see what monetary authorities are going to be doing. we think this is a liquidity its very much a risk on asset in our point of view.

thank you very much for joining us. we have the japan and south korea open at the top of the hour. reports that we may see -- i want to highlight what jp morgan asset has to say about telecom stocks. given their low penetration of internet e-commerce payments in the country. ofare watching indications sk bioscience submitting an ipo application. maker.vaccine micron jumped overnight in the u.s. after it boosted its earning guidance. we are also watching samsung on

a potential annual management reshuffle which might see the head of the memory chip division and replaced. -- being replaced. haidi: coming up, third-quarter gdp numbers most honest. -- almost on us. the market opens in tokyo is next. this is bloomberg. ♪

>> welcome to "daybreak asia." i am shery ahn. haidi: i am haidi stroud-watts in sydney. asia's major markets have opened for trade. asian stocks look set to extend rally as similar talks in washington adds to vaccine optimism. have oilwithin opec suffering for their losses. fiscal and monetary stimulus may have done the job. readings likely to show the

economy shrugging off that downturn. china looms ever larger on the radar as nato looks to rising geopolitical threats. beijing features prominently as the alliance calls for international cohesion on security. shery: japan and south korea coming online. take a look at how the nikkei is 5% higher.out .2 materials and real estate leading the gains. the japanese yen holds a steady. we have seen a pickup in pmi numbers. the best readings since 2019. business investment dropping in double digits so watch out for that. take a look at the kospi. we are at record highs again following the nikkei at a 1991 highs we will continue to see this optimism across asia, following the back of u.s. stocks also rising to record highs. we have cpi numbers and south korea coming broadly in line with estimates, nowhere close to the 2% inflation target, haidi.

continuing to listen to testimony from the governor, philip lowe. he has been saying the nation's economy has turned the corner from the pandemic driven downturn. this as he is speaking to a parliamentary panel in canberra and quite interesting pointing out the demographic issues, saying that population growth is the slowest since the turn-of-the-century and also there are some discussions as to when monetary policy support should be withdrawn. phil lowe saying that should not happen until the recovery is well in hand. in the meantime, the aussie herer as well as equities posting modest gains. shery. shery: our next guest says the risk-on sentiment will prevail and continue into 2021. joining us from singapore is the founder and ceo of sg and see

capital. sgnc capital. are you seeing gains across the board or will they be the usual high liars and big tech names we have seen so far -- high flyers and big tech names we have seen so far? >> they will keep listing most of the equity names. of course, the growth remains in the tech space. we feel the rotation we have been seeing over the last two weeks is likely to continue but overall, thanks to extremely accommodative monetary policies from global central banks, very easy fiscal stimulus and an overall environment where decreasing. are automatically, that will support stocks going forward into 2021. >> where are you looking at geographically? offrom a geographical point

view, we like the emerging markets space. we need to be extremely selective with respect to which ones to go into. a lot of our favorite markets remain in latin america and higher riskhe profile. that's because of the fact that we continue to see dollar depreciation going forward and at the same time, with biden's presidency, you are likely to get the headlines risk out against some of the countries which have been targeted with president trump's rhetoric, especially mexico, and that is likely to benefit the overall risk-on environment. haidi: what are your biggest downside risks when it comes to the emerging-market complex? is it a deterioration in the political situation? is it a revival of the vaccine?

is it more dependent on a relief rally in the dollar? >> geopolitical tensions and risks are always at the forefront and we need to keep that in mind. of course, country-specific. to hitin those is likely emerging-market equities more compared to other less risky kind of names. overall, especially, we need to keep watching the dollar and the dollar is going to depend a lot on which way the senate is going to go in january of next year. do massivekely to fiscal stimulus going through and that is likely to put pressure on the dollar. if the opposite were true, you could see a comeback from the dollar which would hurt the emerging markets space. haidi: i want to get your view on u.s. equities because we have been getting incrementally closer to a stimulus to deal with these talks being revived. if there is a stimulus package,

do you think revival of the 2016 infrastructure driven make america great again type trade is -- do you think it really benefits? massimiliano: let's keep in mind that a deal is priced into the market at current level. will it be bigger than what a market has priced in? with the biden presidency, the important thing is that the focus of this new fiscal package is likely going to be targeted a lot more around industrials, targeted around sme's. everything linked to that space is likely to be supported, but especially potentially going to new heights. industrialthe opportunities going forward. it has rallied. valuations are lower near where the tax base is. there could be more upside potential. shery: what about fixed income?

we are seeing 10 year breakevens and inflation expectations are higher but not necessarily real. massimiliano: -- for yields. massimiliano: the fixed income space, we like much more credit duration risk. you must be compensated for duration risk before we prefer to remain on the value of the curve in terms of duration. one has to keep in mind that there is a risk to the longer-term interest rates which could increase at a much higher pace than what the global investors are currently expecting. it will not be anything short-term but in the long-term, one needs to be mindful of that risk. haidi: when you take a look at the dollar weakness story playing out across fx, is there

an expectation that you continue to see strength when it comes to some of the risk and commodities related currencies like the aussie? yes.miliano: the risk-on environment is likely to be supporting currencies like the australian dollar. dollar depreciation overall, as we mentioned, we expect it to continue growing from a gradual point of view. that will benefit those currencies but as you mentioned, the australian dollar is likely to have additional upside things to -- if you link it to the industrial story, that will help materials and construction, which will be helping the australian dollar. as we know, it is the link to chinese growth, chinese demand, which seems to be relatively healthy from a relative point of view compared to where the world is, before we think the australian dollar is likely to continue appreciating against the dollar. we expect it to break the 74 level soon.

potentially higher. haidi: massimiliano bondurri from a capital company. we are hearing testimony from the rba governor and phil lowe in canberra. the topic of negative rates has come up and phil lowe remains very much against the idea and says skepticism would be beneficial. let's get a check of the first word headlines this hour. prospects of new u.s. stimulus are rising. treasury and the fed are backing new measures. steve mnuchin wants fiscal action to guard against the threat of covid-19. they told the senate banking committee the risk of overdoing measures is less than the risk of underplaying support. toutia and said he's talking president trump and called on congress to pass a bill quickly. president trump will host a vaccine summit as his administration ways emergency authorization for new shots. state leaders, military, and scientific gears will attend with the president claiming

personal credit, saying he came up with drugs no one expected for five years. -- infections in texas set a new record. a court case in thailand could see the prime minister removed for allegedly breaking the law. the constitutional court will decide later today on claims that he violated ethics rules by continuing to use military housing after he left the army to become a full-time politician. the opposition claims that amounts to an illegal special benefit. worriedays he's not about the ruling. xi jinping has repeated demands of tighter protection of .nternational property rights they said they must improve international control and said china must strengthen ip rules as a crucial matter of national security. china's new laws started yesterday. those are your first word headlines. shery: we will have more on the

growing geopolitical tensions, next, including how china has nato'sa bigger blip on radar as beijing's diplomatic offensive on australia continues. plus we will bring you australia's third quarter gdp figures. he will be here to discuss australia's economic outlook as it looks to climb out of its first recession in decades. this is bloomberg. ♪

shery: nato has taken another step towards making china the strategic focal point, publishing a report stressing chinese geopolitical threats as representatives from select asia-pacific nations will join a first of its kind nato online session devoted to china. ush stephen engle, he joins now. what is this nato study saying

on china? stephen: the interesting thing is the timing. the study comes after a tumultuous period the last four years for the north atlantic treaty organization, or nato, which was set up 71 years ago to stop the cold war threat from the soviets. president trump has been vocal in his demands as european nations pick up more of that offense to and there is perceptions in europe that perhaps his rhetoric has undermined nato's credibility, which the experts i have spoken to say has actually played into china's hand quite well. but with a biden administration coming in, many nato members expect a more multilateral approach from washington and thereby getting more support for traditional allies. the timing is interesting, obviously. nato's secretary-general assembled experts from the 30 nato member nations to compile this study and china features

prominently. natoally, the report says must devote much more time, political resources, and action to the security challenges posed by china based on the assessment of its national capabilities, economic heft, and stated ideological goals of its leaders. the other interesting part of this is later today, wednesday, the nato foreign ministers will be joined by representatives of american allies in the asia-pacific region including japan and australia. kindis a first of its online session devoted specifically to china. are there similarities to a different study that came out from the bipartisan u.s. congressional commission that outlines the threat that comes from china? stephen: the allegations are very similar, obviously. we heard the number of threats coming from washington that they

perceive coming from china but this is a new report, bipartisan report, commissioned by congress, bipartisan report, the u.s.-china economic and security review commission. it characterized china as a threat to the current international order and that has american values at its core. it concludes that chinese leaders view those american values as a barrier to china's external ambitions and therefore is an existential threat to their rule. you can imagine that 5g and technology was a clear theme throughout the report and that has been the target of the trump administrations with the clampdown on huawei and others. i warned that china's efforts at financial opening have ulterior motives, part of a calculated strategy to secure for an investment in flow and use them to shore up the may be more fragile domestic economy. there is a number of different allegations of the 575 pages in

the bipartisan report but again, the commission chairman, summed it up this way. the challenges posed by the chinese communist party are not partisan. they are american concerns. haidi: stephen engle there. the oecd cut its global growth forecast to warn countries it cut back worse as -- on stimulus too soon. athleen hays is here with recap and it's a similar vein to what we heard from minutia and powell overnight -- steven mnuchin and powell overnight. the risk is you do too little as opposed to too much. kathleen: they are saying they do see an economy that grows stronger next year but they are warning, yes, do not get overconfident. eggst count on vaccine that have not fully hatched yet. they cut their global forecast

to 4.2% from 5%. that was as recently as september that they had the higher number and they are worrying that looking at the recent virus outbreaks, looking complete,ns, partial, it could cause permanent damage. the chief economist at the oecd was on bloomberg television earlier today and here is how she summed it up. with vaccinesng inside, and governments implementing this to ferns and people, they must continue to do so. there will be a time to reflect on the bed. this theme was prominent in the oecd report itself. he also said that if public policy, public health policy, fiscal policy were to falter, that could undermine confidence and lead to an even more

depressing outlook so they are trying very hard to let all these policymakers around the world. this is not the time to start thinking about not reversing course, even slowing it down. you have got to keep pedal to the metal when it comes to stimulus. how does this breakdown region to region, country to country? kathleen: if you look at it, europe is the one that has gotten the most negative outlook. if you go to the middle of this chart, looking at the euro area and the u.k., it is now seen growing under 4%. that is down from 5%. look at the u.k.. it was supposed to grow 7.6% and now the oecd sees 4.2%. politically, many think he has not handled the virus well. just under 3%. that was supposed to go -- let's go to asia. starting with china at the

far-left, they are still seeing eight percent growth next year. they are economy will be one of the few to be bigger at the end of 2021 then it was at the end of 2019, up 10%. they say it is a result of economic and medical responses to the virus. forn has a brighter outlook 2021, up from 1.5%. south korea and indonesia are also improving. and yet is still pretty dire. they were supposed to be down in their growth next year, more than 10%. that will be something like 9%. there are some rays of hope. they also talk in the same breath about stimulus, why it has succeeded, and why it has to continue, haidi. haidi: our global economics and policy editor, kathleen hays, and we continue to watch out of canberra what we are hearing from phil lowe.

phil lowe saying the nation's economy has turned a corner about the recovery remains uneven as well as bumpy, saying economic growth is expected to be solidly positive in the third and fourth quarters of this year and then to grow by 5% next year. they are talking about the medications from the rba, saying he is trying to avoid speaking too much, saying he will speak when he has something to say, something important to explain, saying that the unemployment situation is the main risk to stability and the housing market remains resilient. we will leave that they are but if you are a bloomberg subscriber, you can keep watching at live . you will find the diary entries coming up later today and later this week as well as some of the events from earlier. this is bloomberg. ♪

haidi: nasdaq joins the push for

more diversity on its board of beentors, a move that has hailed as game changing. under the proposed new rules, they would have to include at least one director who identifies as female, one who identifies as an underrepresented minority or lg db2 -- lgbtq. they say there's a long way to go. >> it has to be logistics because we know already looking at the data that everything does appear to be good in terms of safety, efficacy, much higher efficacy than we ever expected with first generation vaccines. the question is getting the approval which most people think is going to be forthcoming in a matter of weeks. the scale up in production and getting this vaccine into the arms of people all around the world turning into a vaccination. that will be one of the biggest public health challenges we have ever faced. >> what is the right way of thinking about this?

>> there's a number of avenues either getting pharmacies to administer some of the vaccine shots, even possibly drafting firemen and things like that. how would you approach this? >> everything has to be all hands on deck when we are vaccinating this level of a population. it will be a trickle. health-care workers, high-risk individuals, when we are talking about vaccinating the entire world's population of adults, it's going to be something you are going to need nontraditional -- >> here's a quick check of the latest business flash headlines. credit suisse expects to take a $380 million legal hit in the current quarter related to a long-standing case around residential mortgage-backed securities. a new yorkg costs -- judge ordered the bank to submit estimates of the damage caused in 2007.rtgages issued

they set aside $300 million. boeing signed a $5 billion funding deal to help airlines and other companies looking to buy planes. the debt swelling to $60 billion amid the 737 max grounding and virus fallout. they launched a new aviation lending program last month and boeing wants to concentrate on its cash burn. itsh korea's plan to revamp airline sector has won the green light from the courts, a crucial step in the plan to buy smaller rivals. the district court rejected a request to halt the sale of new shares to the korean development bank, which will enable the takeover. the ruling clears the way for what will be the biggest shakeup of korean aviation in history.

china's number two smartphone maker, xiaomi, raised 4 billion u.s. dollars from a combined share placement and the sale of convertible bonds. xiaomi is selling one billion shares at a high-end of $24, a premium of okta 10% on mondays close. xiaomi says it will use the money to expand market share from under pressure local rival, while. do not miss our exclusive interviews, coming up. we will speak to the general manager of ibm in the asia-pacific. the team has released a study on the future of business post pandemic and the chairman of india's largest carmaker, who joins shortly after that. up next, we are looking ahead to australia third-quarter gdp data which is likely to see the economy ending its first technical recession in decades. we will have the figures shortly. this is bloomberg. ♪

haidi: we are getting third-quarter gdp numbers for australia. it is quite a beat on estimates, 3.3% is what we are seeing on that quarter on quarter number. surveys were for 2.5%. a year on year number of a contraction of 3.8% but better than expectations of a steeper contraction of 4.4% so let's bring in for immediate reaction the head of fx strategy at national australia bank. quarter,nt quarter on we were expecting a recovery and we have been hearing from the rba governor, phil lowe, speaking in canberra, saying he

expects a strong performance for the third and fourth quarters going into gdp of 5% for next year. are you optimistically surprised by this number? a little bit below our own expectations. we were thinking the consumption side of the equation might lift gdp by as much as 4% so little better than expected, a little bit softer than we were expecting, but a good result regarding what governor lowe was saying not very long ago. he was hoping for a number with at least a two in front of it. he should be surprised with a numberless of three in front of it we would have thought but it still leaves the level of gdp at the below where it was in first quarter plea the pandemic. there's still a lot of work to do close that so-called output gap and to bring the labor market back into a fully employed economy.

phil lowe was explicit he needs to see the unemployment rate with a four in front of it before we might start to see inflation which will be a prerequisite before the rba contemplates backing off from its ultra easy policies. haidi: we are getting more of a breakdown. the spending number rising shy of 8% quarter on quarter and we would expect that pent-up energy as we had melbourne reopening some of the borders and that should set us out pretty well for the data we get then. when it comes to the aussie seear, if we continue to the growth premium for australia against the u.s., do you expect further upside and where would your target be for the aussie to peak? >> we have got a peek for the aussie coming through later next least $.80 sof at we think there's a lot of upside although that's primarily driven

by the view of the u.s. dollar and negativity towards the u.s. dollar. accelerated, if you like, with the positive vaccine news, what that is doing to risk sentiment. in negative to the u.s. dollar and a positive for the aussie. we had a long-standing forecast of $.74. we hit that early this week as we did in august. there is obviously the risk that we may end up somewhat above that but as we go through next year, we see every chance that the aussie would continue to move ahead. one of the concerns would be how the china-australia international relations, how that is showing up in trade actions. if that were to intensify, that would be one of the downside risks to an otherwise still bullish forecast for the aussie dollar. all of then uncertainty out there, whether

it is geopolitical or the coronavirus, infections around the world, how does that bode for the japanese yen? we have seen significant strengths but really, where is it headed? is it headed for 100 or 110? >> 100. we have entered a new slightly lower trading range that will carry further. it's not dependent on there being necessarily risk-off markets. you know, the yen is still an undervalued currency by some measure. has the u.s. dollar is overvalued, we expect that valuation gap to continue to close over the course of the next year or two so we are targeting levels of around 100 materialized in next year, to get back up to 110, you would have to see a resurgence in interest in the u.s. dollar probably led by higher u.s. bond yields but essential view is that they are nowhere on that

.orizon at this stage you'll stay down unless we have explosive moves up in equities. we think the path of least resistance remains bound. they: how important is japanese yen right now in the global currency market context given we are seeing more euro dominance, the euro reaching new highs already today? we have the chinese yuan playing an ample role. we are thinking about the broad dollar in index terms, the euro and sterling in the near term are going to be more influential so yen strength is -- if we are right, dollar-yen does trend down towards 100. is that a line in the sand where the japanese authorities start about yenlly can earn

strength and in the context of an economy that is mired in deflation? exacerbateh will those deflationary tendencies but if the japanese were trying to do something over to try and arrest yen strength, they are going to fall afoul of the g20. battle, in general, i think the yen is not where it is at as far as a broader currency move at this age. the chinese korean won will be more influential because of movements in the won, broader em moves, and the growth in commodities. shery: great to have you on. thank you. head of x strategy at national australia bank. breaking news at the moment. the lowest coupon and junk bond

being sold this year. you're talking about a consumer lender. we are planning to offer the country's second never junk bond publicly in the local credit market and now, we are seeing that they still the lowest coupon junk bond this year in 2020. let's get a quick check of the first word headlines. u.k. and e.u. negotiators hope to strike a last-minute brexit deal this week but sources on both sides say the outcome remains too close to call. around-the-clock talks in london are making progress but we are told significant differences remain. michel barnier will brief european diplomats later today with the next few days seen as crucial ahead of a summit on december 10. hereon is found to avenge the death of it talk nuclear scientists, saying it will deliver maximum pain to those responsible for his killing.

he is seen as the father of tehran's nuclear program back in the early to thousands. at the same time, tehran is warning it will lend inspections of its nuclear sites next month if the u.s. does not lifted sanctions. lawmakers have given washington for weeks to comply. the indian government has opened talks with leaders in a bid to end widespread protests against new agriculture laws. tens of thousands of workers gathered outside new delhi, demanding the modi administration rolls back regulations that they say will damage incomes. tuesday's meeting ended in conclusively with farmers rejecting an offer to set up a panel to consider their demands. a surge in virus cases in hong kong have grounded plans for a travel bubble with singapore until at least next year. the city says the decision has been prompted by the severity of the situation with the number of

local infections increasing rapidly. the corridor has been seen as a template for other global bubbles as the airlines seek to emerge from the devastation caused by covid-19. those are your first word headlines. joined the push for more diversity on the board of directors. it is a move that has been hailed as game changing. the proposed new rules state most companies will have to include at least one director who identifies as female and one who identifies as an underrepresented and already or lgbtq. speaking to bloomberg, harris said while progress is being made, there is still a long way to go and this is a package that we earlier meant to bring to you. it was a profound and provocative statement. when i read it, the first thing i thought was #leadership

because they are an important player in the ecosystem and for them to make this statement and to say that they are going to advocate to make it a requirement and to put that out there, i thought it showed real leadership. it will certainly accelerate the change. we arehe same time, seeing companies in silicon valley. i'm not sure if you're familiar with the coinbase controversy note the ceo said they will take on activism not tied to cryptocurrency, a number of african-american employees have left and other employees have left. at the same time, you see evidence that we are moving two steps forward. there is evidence we are moving three steps back. you know, how do you not let that -- some of these more pest to make -- pessimistic developments hold you back? carla: i am a glass half-full kind of gal. the fact that company after

company has come out and made a statement around what they stand for with respect to, you know, their focus on diversity, inclusion, and equity, and then belonging, and that they are actively trying to do something about it, i think that far outweighs that one instance. here's the other thing that makes me optimistic. , which are becoming the dominant population in the workforce, they are going to turbo boost that, which boomers have tried to do for the last 20 years, because their idea of to seence is multicultural folks in positions of leadership and also people who are on board. that is their idea of excellence. they have seen women lead and they have also been in institutions where they have had black kid on the left, smart hispanic kid on the right,

smart any kid in front of them. let's just what it looks like. you knew as a person of color that if you wanted to play, you had to be comfortable being the first and the only in many rooms. that is not the case for what millennials see as excellence in corporate america and they want to work with companies that are aligned with their values and if they don't yet, they won't vote. if they go, they will not stay. that will compromise any company's objective of being the employer of choice. shery: morgan stanley vice-chairman and managing director carla harris, speaking with emily chang. coming up next, jd health raises 3.5 billion u.s. dollars after pricing of its ipo. we will bring you those details and look at evergrande listing, two. evergrande's listing, too. this is bloomberg. ♪

haidi: let's take a look at how markets are faring with sophie kamaruddin in hong kong. what are you watching? sophie: it's a lackluster session in asia with change in japan as well as in australia. kospi leading the regional advance, being boosted by a rally in chipmakers. macron boosted its earnings guidance, indicative of the narrative around the double recovery trade. in south korea, parliament will

be voting on the 2021 budget area lawmakers have already agreed to increase spending that will be funded by bond sales. let's switch out the board to check in on currencies this morning and i want to highlight the malaysian ringgit which is edging closer to that four 4.0693.evel, trading at earmarking the malaysian currency as one of the potential top performers. check out the offshore yuan while the dollar is staying near a 2018 low. more witnesses a next year for the greenback and they are penciling in 80 for the aussie dollar in 2021 this morning. we are seeing at hold below 74 in the wake of the deep data and with commentary from governor low also in focus. check out the hong kong dollar training off the strong and. wanting for inflows given the increasing pipeline of share sales here in hong kong with the likes of byd and jd health on tap, shery.

it has raised 3.5 billion dollars after pricing asia's biggest health care listing and is to start trading in hong kong on tuesday. joining us now is our equity capital markets reporter, julia fioretti. they surpassed even japan's public listing just a decade ago. >> yes, it is. it is the biggest health care listing in asia on record and it's also hong kong's biggest proper ipo of the year if one excludes the homecoming listing for the likes of jd, so it's got quite a few landmarks and it priced at the top end of the market range. health care has been a hot sex this year. health care ipo's are actually on a record. health care companies are going public at a record pace. they far outstripped what was raised in previous years.

investor demand has been very strong. partly that is due to the coronavirus which has focused everyone's mind on health care, not just on the coronavirus related -- so the valuations have been really good. yes. haidi: we are also watching the start of trading when it comes to evergrande property services. to starthat's going trading later today or quite shortly. that one was less popular than jd health. perhaps unsurprisingly. evergrande property services parent is notoriously indebted that >> just off the bottom of billion., $1.84 however, local media are reporting that it was trading up, perhaps the she cheapg might help --

pricing might help buoy his performance. -- its performance. yes, and to top it all off, xiaomi has raised about $4 billion, sending shares in convertible bonds. that is the biggest prop up placement that hong kong has ever seen. it will use the proceeds to help expand its market share. xiaomi has been expanding its market share from huawei and its shares have also been on a real rally this year. they did slip after the results. on the september quarter. but still, it has been grabbing market share. it needs cash to keep on doing that. equity capital markets reporter, julia fe. we are getting some more details about a deal we have been earning on now. dealgroup is near a

to buy $1.3 billion according to reporting in mint. that is a much bigger stake than what we have been expected. tata group -- the deal has the potential of being the biggest investment by a local conglomerate into what is seen as a business, this grocery the retailer. -- e-retailer. they are nearing a deal to buy 80% of big basket for $1.3 billion according to mint. other investors include the likes of alibaba. a quick check of the latest business flash headlines this hour, airbnb is seeking to raise $2.6 billion in its long-awaited ipo which would value the home rental platform at $35 billion. airbnb set pricing between 44 and $50 a share.

they are planning to priced the ipo on december 9. wasnb's largest valuation $31 billion three years ago. to buy slackreed technologies for $27 billion in cash and stock in one of the biggest tech deals of the year. it gives it a vital workplace communications platform. the agreement represents a premium of 55% to slacks price a week ago and is expected to be completed in the second quarter of next year. blackberry sword the most ever after signing a multiyear agreement with amazon to develop its intelligent vehicle data platform known as iv. shares were up by 60% with volume at more than 20 times the daily average. it is a software platform that lets carmakers read vehicle sensor data to help performance of cloud connected vehicles. coming up next, more shows to

binge on. let's have been double spending on original content from asia as it looks to stay ahead of the game. we have that story, next. ♪ ♪ this is bloomberg. ♪

shery: netflix is planning to double spend on original content in asia here to cement its stronghold in a region that has seen the fastest growth in subscribers. this. jiao has more on

how much investment are we talk about here? -- talking about here? >> they did not disclose the exact amount of investment in an interview but they estimate netflix could spend $1 billion in producing and acquiring original content from asia next year. besides original content, netflix licenses local content and they told us they spent $2 billion on original and licensed content since 2018. focus on original content in asia? is the: asia pacific fastest growing market by subscribers for netflix and it's also one of the world's most sought after markets for video streaming revenue. streaming platforms have got a big boost in asia since covid

because people are staying at home and media partners in asia estimate that streaming revenue in the asia-pacific, excluding china, will more than doubled to $15 billion by 2025 so it is a huge market for any streaming platform to be serious about. where thewe know money is going to go to in terms of programming? shirley: korean content and japanese anime are the most popular content that are not only popular locally but also travel across asia and even around the world, so you have series like the seven deadly sins that have really become a hit worldwide in recent years so those would be the two areas that netflix will continue to invest heavily in. there has also been a focus on investing in india. you have shows like indian matchmaking that have become really popular.

southeast asia will also be one of the important new markets for netflix and asia, especially thailand and indonesia. haidi: much more to binge on ahead. shirley zhao there with the latest on netflix. let's get to sophie in hong kong with what to watch in the next hour. sophie: when it comes to stocks on our radar, we are keeping an eye on see atl -- catl. up invernment is ramping decarbonization efforts. he also keeping an eye on chinese intellectual protection -- intellectual property protection firms. xi jinping on the importance of securing ip protection for national interests. when it comes to other stocks to watch, in malaysia, keeping an eye on top love as the government started an

investigation. shery. shery: we will have more market analysis in the next hour and we will be speaking to blackrock's michael frederick as asian stocks edge higher after u.s. equities hit those record highs. do not miss a big guest coming up tomorrow. robin cleveland joins us to discuss what moves the u.s. needs to take to deal with rising threats from china. catch that interview tomorrow at 7:30 a.m. in hong kong. that is it from "daybreak asia." our coverage continues as we look ahead to the start of trade in hong kong, shanghai, and shenzhen. standby for "bird markets -- "bloomberg markets: china open." this is bloomberg. ♪

>> it is 9:00 a.m. in beijing, shanghai, and hong kong. welcome to "bloomberg markets: china open." i'm tom mckenzie. our top stories, asian stocks extend the rally as stimulus talk in washington adds to vaccine optimism. the dollar slides to a two-year low, while tensions within opec and oil spurs losses. money rolls in for chinese companies trading in hong kong. xiao mi raises 4 billion