♪ haidi: good morning, we are counting down to asia's major market open. kathleen: welcome to "daybreak: asia." our top stories this hour -- new year, new highs, stocks entering 2021 at records. whilellar is drifting sterling weakens on lockdown fears. the top u.s. disease experts say

vaccinations are getting back on track as president trump questions the numbers. japan will lay out new measures but no state of emergency in tokyo. and more potential changes on wall street. china's energy measures the latest to face being shown the agrees to expel telecom companies this week. haidi: we are getting an alert when it comes to australia's health crisis. we are seeing the price index rising 1/10 of 1% month on month. there has been some concern when it comes to the property market, as we have the record low interest rates. monetary policy stimulus continuing to fuel the sprint we have seen, particular in capital cities. the recovery taking place from as early part of last year we saw the dip toward the middle of the year, rising just shy of 1% month on month. looking at this first trading day in the asia-pacific, of the

new year. sophie kamaruddin is in hong kong. what are you seeing? is off-line,ealand but australian stocks starting on a front foot, adding about 1/10 of 1%. this after the index closed out 1.5%,n the red, up about the worst since october. have some data to digest. in japan, nikkei futures pointing lower as the tokyo government mulls virus curbs. restaurants may have to close no later than 8:00 p.m. u.s. futures opening to the downside after stocks close out 2020 near record highs. we have oil moving to the downside this morning, trading just above the $48 per barrel level. a lot of focus on cryptocurrencies, given the rise in bitcoin.

etherium looking to crack the 1000 level. kathleen: dr. anthony fauci he says the pace of the vaccine rollout is actually picking up after a slow start. >> we are not where we want to be, no doubt about that. if i think we can get there we accelerate and get some momentum going and see what happens in the first couple of weeks of january. kathleen: officials of lame delays on a variety of factors, including complex storage requirements and uncertainty over supply. let's get the latest from ian fisher in new york. it seems like there is more and more ideas as this gets underway as to how things can be sped up. what is the most promising? ideashere are a couple of , scott gottlieb, former fda commissioner, said pharmacies,

which have always been in the picture, could start more widespread vaccinations, taking in everyone over 65. government is actually looking at a very interesting idea of actually having the , tos of the moderna vaccine spread it out over a larger number of people, and they say ,he efficacy of getting it splitting the doses and have, it is about the same protection as if you got the full dose at one time. haidi: it's really interesting, particularly if it gives more breathing space, and given we are seeing virus cases in the u.s. above 20 point 5 million, the national increase in cases climbing 1.5%, that is above the daily average increase of 1% over the past week. is this a good indication that we are seeing payback for the

holiday travels and gatherings that happened, even as health authorities pleaded for people not to? fauci and others said they were afraid this was what would be happening. you are certainly seeing in california a holiday spike. everyone pretty much agrees. the numbers that came in yesterday were 300,000, which is by far a record. some of that was backed up reporting from the holidays. we saw a little bit less today, but i don't think those numbers are going to be sorted out for a couple of days. but i think everyone is pretty much in agreement that what was a bad situation is going to get worse in this cap between now and the time when -- this gap between now and a time when people can get vaccinated. kathleen: scott gottlieb, you

just mentioned, former head of the fda, was on face a nation, and he stressed this new infectious strain at the very least is not going to kill any more people. that's the outlook so far. what else are we hearing? spread to over 30 countries. is much moret infectious. it does not appear to be any more deadly. it does appear, and moderna has said it very clearly -- excuse me, astrazeneca came out and said there vaccine would be efficacious for it. but at the same time, what happens is if it does spread more, you get more people in the hospital, you will in theory possibly get more cases, and it is possible that hospitals and medical systems will be

overwhelmed and despite what dr. gottlieb said, more people may in fact die. haidi: ian fisher there. let's get you to karina mitchell in new york with the first word headlines. karina: sydney imposes mandatory mass coring on monday among new virus clusters. everyone must wear masks when shopping on public transport, and at entertainment venues and places of worship. virusis mulling new plans, although they are unlikely to include a state of emergency in tokyo. restaurants will be asked to close starting at 8:00 p.m. resident trump has been recorded urging election officials in georgia to "find thousands of favor as hes disputes joe biden's win. in an hour-long call on saturday, he both flattered and threatens officials, including the secretary of state, to act in his favor. congress meets this week to ratify the election result, and

unofficial recount says joe biden won georgia. >> all i want to do is this -- i votes,nt to find 11,780 which is one more than we have, because we won the state. karina: the new u.s. congress has met for the first time, with nancy pelosi winning another term as house speaker amid a reduced democratic majority that calls for new generation of leadership. there was no other candidate and she achieved the required 50% of the vote for the gavel. the new congress gathered in what could be a momentous week with members preparing to debate and ratify joe biden's election won. -- win. the u.s. wrapping a pressure on china, after the potential removal of -- some might have been banned because of links to the military after president

trump's executive order stopping investment in some chinese companies. telecom and, and a china unicom are expected to be delisted in the coming days. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. kathleen: thank you. we've got breaking news on that last story, china mobile is saying it has not received notification from the new york stock exchange on the delisting you were just talking about. havesaying that they complied strictly with the laws and regulations, and they regret the new york stock exchange's decision and action. this is a very big story. the telcos getting cut, we have an oil producer and others, china petroleum, petro china, on the list for delisting.

it seems to be spreading. but china mobile is fighting back and saying they did everything they were supposed to enter disappointed. we will be covering this closely as news breaks. coming up, a look at the year ahead for asian economies with a guest. that is next. and a new year for opec-plus as it must decide production levels versus potential oil recovery. we preview the meeting. this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? delegating? oh, good one. move your xfinity services without breaking a sweat. now that's simple, easy, awesome. xfinity makes moving easy. go online to transfer your services in about a minute.

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♪ 2020 is an extraordinary year. in the face of the sudden coronavirus pandemic, we put people and their lives first. we wrote the story of tackling the pandemic with concerted efforts and perseverance. >> a year in which the government was forced to tell

people how to live their lives, how long to wash their hands, how money has holds -- how many households could meet together, and a year in which we lost too many loved ones before their time. >> there has never been a single thing america has been unable to overcome, no matter how drastic it has been. >> the coronavirus pandemic has been and continues to be a political, social and economic challenge of the century. >> we can see that illuminated sign that marks the end of the journey, and even more important, we can see with growing clarity exactly how we are going to get there. and that is what gives me such confidence about 2021. kathleen: global leaders addressing the fight against the pandemic on new year's eve. for the global economy, 2020 ended with a sense of hope for the future, and that hope is partly built on the assumption that it cannot be as bad again

in 2021. let's discuss this with our guest. stephen, we all know we don't want to get jinxed. we know 2021 is not guaranteed to be a better year. is the virus and the success of the vaccine for 2021 going to be the key deciding factor for how individual economies due around the world? -- do around the world? stephen: yes, i think it will be one of the key factors. certainly the spread of the virus, particularly in the northern hemisphere, still looks incredibly problematic. we have the hopes of the vaccine being rolled out in many countries. is some risk,ere or the rollout of the vaccines could take a considerable amount of time. people take the vaccine, the

distribution, how effective will it be? then you have individual country policy responses, and every nation. fiscal policy in different positions. we are worried about whether there will be an automatic pardoning a fiscal policy in many countries in 2021 that will need to be offset through more fiscal policy easing. kathleen: imf has been looking for certainly negative growth this year, possibly small growth next year. do you think the outlook has brightened at all for some of the world's biggest economies? certainly china at least has a recovery going. maybe it is peaking. is the outlook better than maybe a few months ago or is it worse? stephen: i think it is a little bit better. certainly we expect china -- china is the only major economy havellow that we expect to

recorded positive growth in 2020 and solid recovery in 2021. the u.s. performance has been better than expected in the second half of 2020, but now the virus has increased dramatically and there is the political overlay. we expect positive growth in the u.s. this year, but some of the risks are building. unfortunately in the u.k. and europe, we expect a double-dip recessions because of the lockdowns introduced late last year. haidi: for the world and certainly in asia, the great hope of being the china recovery and writing on the coattails of that, -- riding on the coattails of that, the pmi numbers from china in december showing some moderation. is that the peak of the recovery? stephen: we have to look at not just the changes at the level. china early and others deep

downturns in the quarter. some had better-than-expected recovery in the third quarter. you cannot expect the pace of recovery to continue as it was in the third quarter. positive growth expected in the fourth quarter and into this year. as i mentioned, ticket early in china and -- particularly in china and the asia-pacific region. haidi: despite all the global stimulus efforts and monetary weicy, unprecedented levels have seen, we continue to see deterioration and labor markets. is there a risk of long-term economic scarring if some of these inevitably do not come back? stephen: that's right, unfortunately. we know in recession, jobs, labor market recovery takes a long time. this is a recession like none other.

like what we have not seen in many decades. backpect the economy to go --pre-covid is unexpected perhaps jobs will not return. it will be a long process. if you look at the level of growth, we are not expecting the beel of economic activity to back to pre-covid until later this year. we have some way to go, and capacity means labor markets will remain softer than they otherwise would have been pre-covid, for some time to come. kathleen: quickly i want to ask you, is the bigger risk to you that governments will start pulling back stimulus or slowing it down to quick -- too quick or the central banks the side they can stop stimulus a little bit? stephen: i think the risk is on the fiscal policy side. as you mentioned, the risk that

governments remove fiscal policy support too soon. we think the main risk for growth this year globally if we learned anything from the financial crisis, is that you should not remove stimulus to quickly. -- too quickly. the level of debt is a concern, but some are banks are remaining that interest rates remain low for quite some time. they are as low as i possibly can-- as low as they possibly be, or negative. what is the economic return for that debt? the economic return exceeds the interest, then we should continue to use fiscal policy to support economic recovery. i think we will see that, but the risk is fiscal policy is tightened too soon and that hampers recovery. haidi: productivity might be one

of the interesting things this year. we have to the that there. bitcoin in the meantime continuing to rally at record highs in the new year, rising above $34,000 for retreating in london trading. when i went on leave before christmas, we were looking at the $20,000 milestone. it was a quick rise. what are analysts saying as to where to from here? [no audio] joanna, what are we hearing from people in the know as to what the path in the bitcoin trajectory might be? atnna: people are looking $50,000 -- it is incredible that

just in mid-december we were going over $20,000 for the first time, and now bitcoin is trading around $33,000. $50,000 isve said the next thing we are looking at. there's also the potential for volatility on the downside. 20,000 is still a key level. very fast jump in price, it got to $20,000 and now it is $34,000. what is the key thing pushing it higher? probablyhe year end fueled this, where people were looking at how well crypto did in 2020, saying maybe i want to get into this before the end of the year, eddie i want to get into it in the new year as everyone -- maybe i want to get into it in the new year as everyone reassesses. they people on holiday, might have set my relative was bragging a christmas about this

and i want to see about getting in. a lot of things at the year-end might have fueled this but it is quite amazing. kathleen: quite amazing and we will see how it goes is the new year begins. join also go from singapore, our cross asset team editor. next, oil majors could be next for delisting in the u.s. all of that is next. this is bloomberg. when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $400 a year with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store.

♪ majors may be oil next in line for delisting in the u.s. after the u.s. stock exchange announced it would remove the country's three biggest telecom companies. let's get the latest from tom mackenzie in beijing. is this an invented -- and inevitability they will be next? tom: it is not inevitable but certainly the view of bloomberg intelligence that it is very likely china's oil majors may be seented because they are

as having links to the chinese military. to recap, last week you have the new york stock exchange delisting the three top telecom companies. that's on the back of the executive order signed by president trump banning the u.s. investment in companies u.s. has links to the chinese military. now we are at the point where we are looking ahead to see which other companies could be delisted. as you said, bloomberg -- saidence and sinopec sinopec could be on the list. china says it will take necessary measures to protect its companies and calls this action from the u.s. a groundless and reckless. we've had lines from china mobile saying they have not received notification from the new york stock exchange about the delisting. they said they have complied straightly with all of the laws and they will regret this decision.

kathleen: put this in the context of change in the white house. an incoming joe biden administration. what are you hearing -- are the seeing seeing or are you a thought in chinese and u.s. relations -- thaw in chinese and u.s. relations? tom: not quite yet. this doesn't come as a surprise to china watchers, there has been an olive branch dangled in front of the incoming administration. notably from the foreign minister, writing on the foreign ministry website that he sees a new window of hope for u.s.-china relations and he urges washington and essentially the incoming biden administration to resolve disputes through dialogue. he did say the two countries have faced unprecedented occult these and he blamed that on all of these -- completely wrong, as he described them, please the wrong policies from the u.s. side.

we have heard from officials linked to incoming president biden that they will not be removing tariffs immediately. there isn't a sense there will be a major reset in the bided administration, but it is in china's interest to get someplace where they can have a conversation. kathleen: thank you, tom mackenzie in beijing. now a quick check of the latest business flash headlines. china's box office taking at a record $83 million on new year's day, and assign the market is bouncing back. it is the highest since records began in 2011 for the day. china's box office revenue dropped sharply to $2.8 billion last year, but still topped u.s. takings. one of apple's top asian suppliers has suspended -- has been suspended. someone was arrested over fraud. race top, governments

control the spread of the virus. this is bloomberg. ♪ bloomberg. ♪ ♪ ♪

karina: i'm karina mitchell what the first word headlines. the vaccine could be on track for the end of the month after anthony fauci had warned last week that shots were well behind projections. new infections hit a record in arizona, though new york's numbers flowed after reporting a million cumulated cases. rising u.k. cases are prompting a demand for national lockdown that calls for new measures within days. >> the virus is clearly out of control. thereime minister hinting

could be lockdowns coming -- thoseelay has -- bring restrictions now, that has to be the first step to controlling the virus. is forecasteconomy to deteriorate in china -- a national survey says half the respondents predict will get worse this year with only 15% seeing any improvement. effective worse provinces are expected to follow suit. u.k. financial firms have won a lifeline with a post-brexit time which they can continue to do business. the timeframe arise -- applies to any financial firms that applied before the end of last year. the trade deal was put in place --ore christmas but india's trade deficit jumped by

26% compared to one year ago as imports surged. the shortfall widen to almost $16 billion as inbound shipments rose 7% and exports flatlined. gold imports ballooned more than 20% while petroleum products are the biggest decline. pharmaceuticals saw the biggest rise in export value. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. we are covering the latest news on big china companies getting delisted. we are hearing from china unicom aw, saying it has not gotten notification from the new york stock exchange on delisting and this follows the same kind of statement from china mobile. it remains to be seen what the

new york stock exchange response will be. you can see stocks are down sharply over the last year. this is just one more thing sure to be an issue as 2021 gets underway. we want to get the latest on the markets more broadly from hong kong. >> here is a look at cash trading right now. start of 2021he with all sectors pretty much in the green. the mostch -- seeing in nine months after ssn see technology withdrew its takeover bid and you can see some ground gained here after the benchmark highs out 2020 at august and tnd asset management seeing dirty thousand for the nikkei could be in sight. let's check on some assets we

are keeping an eye on this morning. oil markets very much in focus and being led higher. the bti is stalling after a three-day day gain but holding above that $48 a barrel. a lot of focus on crypto currencies. you have the rise in bitcoin and adding about 36% this morning. what a rally in crypto. the increase in new virus cases in australia appears to be slowing as restrictions take hold. we had the mask mandate taking effect over the weekend. what are we seeing in terms of case numbers? is there still a risk of things getting out of control? there absolutely is. we had eight new cases in new south wales and victoria just reported another three just now. we will have an update at the top of the hour but it is

trending down. it's linked to existing clusters . new south wales is proud of its ability to do contact tracing and it is seeing encouraging rates of testing as well but those new restrictions, masks are mandatory in enclosed public spaces and carries a fine for noncompliance of $200 australian . the concern is one of these clusters has no identified source, so there is a concern the virus may be circulating undetected in the community. compare that to the u.s. and europe, it is extremely small, victoriaxperience in last august shows how quickly things can get out of control, so the situation is balanced on a thread right now. we have australia and china who we know are

increasingly at loggerheads. geopolitics always hovering in the background. it has given us truly a chance to push back against china's growing influence in the pacific. astray has promised to supply its pacific island neighbors with vaccine as part of a half-million dollar aid package to fully immunize is populations. now toa deal with fiji allow military exercises in jurisdictions and there is an infrastructure fund as well has a an loan that china has put into the region. china is developing projects elsewhere, reducing its diplomatic staff due to the not reallyd it has provided a lot in the way of covid really fade but the strategic battle is not over and will resume once the pandemic receipts. the japanese prime

minister is preparing plans to contain the surgeon coronavirus cases in and around tokyo. the central government may change laws to give containment efforts more teeth. them fromeping hosting a more complete lockdown seen other countries? fold: it is a several answer because the japanese constitution has civil liberties built then where police cannot go in and clear the streets and theyill of the government, have not been very successful on that front. this is also an economy desperately trying to recover not only from decades of deflation and negative growth, but last year, the damage caused by coronavirus. 245,000 cases, 3429 reporting 816 new

cases with serious cases topping 100 for the first time since the first state of emergency was lifted in may. they have 1300 new cases on new year's eve alone. these four economy, prefectures, including tokyo quarter of the national gdp. so shutting it down with a state of emergency would be damaging. however, the leaders of those four regions, including the tokyo governor urged the japanese central government on saturday to impose a state of emergency. the government so far has refused to do so. however it is considering new efforts and we will get it outlined hopefully today in a press conference by the prime minister, his efforts to change, giving amendments to current containment laws to give those

efforts more teeth. haidi: what are we likely to hear in terms of specific measures? we have already seen orders in these prefectures that have seen the surging cases, orders for bars and restaurants 8 stop serving, to close at p.m., and new amendments to the laws could penalize bars and restaurants that do not comply and incentivize those establishments that do comply. again, there is the possibility of a state of emergency being hasied come but so far, he refused to do so. they want a guarantee with this amendment, some assurances that whatever steps they take will be effective. they don't want to continue prolonging this throughout a cold winter season. however, any amendments to the current law will need to be approved by parliament and

parliament does not meet until january 18. tellingnt sources are us some sort of amendment could be passed by the end of this month. that's another three or four weeks of what has been a surging cases in tokyo and those surrounding prefectures. coming up next, higher production without capsizing the oil price recovery. we will preview that. this is bloomberg. ♪

haidi: take at look at the oil patch and hoyer starting off the year. when it comes to brent and wti, we see brent little softer as well as trading in new york ahead of the opec meeting later this week. oilave seen a stabilization prices and that has largely been on demand out of asia. but as we heard from the opec theetary over the weekend, oil market in the first half of this year will be mixed. also bracing for downsize risks. -- downsize risks. always great to have you. a lot of uncertainties for oil

demand. this is a precarious balancing act opec has to strike. >> good morning and happy new year. the rightact is phrase. isarly the event of the year cautious optimism. we saw nearly 38% premium creep into crude prices over the last two months. see going into the markets for the first quarter of this year as well. caution onowever, -- the virus still has its grip on the western hemisphere and even as far as vaccines are concerned, there is a lot we don't know yet. we don't know if it's going to

be logistical and financial hurdles and any unforeseen hurdles, such as the virus mutating and so on. i think opec is going to be cautious, but i feel the internal dynamic of the group, just to keep the peace, they might err on the side of continuing to cautiously ease reduction. -- ease reduction. -- ease reduction. haidi: we had that stalemate and then you have russia signaling readiness to move ahead with more production. be moreikely to impactful during the meeting? >> i thought it was interesting russia said quite openly a few to $55 crude $25

range is what is optimum for them to continue increasing production. aparts to keep in mind therenternal friction, are always going to be members that do not fully comply and there is a complex mechanism they rolled out toward the end of last year that is quite patchy in its success. yet shownia has not its hand as to today's meeting. has beenw saudi arabia taking a more hawkish stance. it's the balance between a dovish russia and a slightly hawkish saudi arabia. maintainder to solidarity and to keep shale in

check. let's not forget that because opec will probably want prices rather than to 50 55 or 64 fair of giving shale another lifeline. do you think they have learned a painful lesson? last year, when the lockdown started and saudi arabia went after russia at the worst possible time, oil cratered. do you think that left a big mark on everybody and the parameters they have to stay within? i think what that incident did -- of course it tested the opec and non-opec and non-opec cohesion but it also told them the success they managed to achieve over the past collaboration is

also very fragile. it can be lost very quickly. there are lessons learned in that there will always have to be compromises between the hocks and the doves, between the de facto leaders and russia. so compromise is going to be a key theme for opec-plus going forward. agous room or not so long they said they may need to keep these are strange in place until the end of 2022. it is a whole game they are playing, so it is going to be compromise. i know you are also watching the runoff elections in georgia. the deciding factor of who will have the republican or democratic majority in the u.s. senate. is that something oiled traders are watching because they assume that will determine how much and

how aggressive joe biden can put through more stimulus? --st: a couple of events therrow and the day after oil markets will be keeping a close eye on it. the georgia runoff will determine the control of the senate and in the long term, if you have a democrat-controlled house but whether the sum of -- senate it is going to determine what extent biden needs to temper his green agenda in terms ingoing after the oil sector the u.s., removing some of the stuff the trump administration to it. going forward, even into wednesday, when the certification of the electoral , arege are concerned, that there going to be last minute surprises being sprung by trump

and his republican supporters? these do not directly impact the oil markets but it could cause quite a bit of turbulence in the financial markets. definitely something for oil to keep an eye on. anhleen: could be interesting week for oil as 2021 gets underway. thank you very much. now we are going to give some live pictures from japan -- the tokyo stock exchange holding its year lease or money to mark the first day of trading in tokyo. one of those lovely japanese customs you don't see everywhere. plenty more ahead on daybreak asia. this is bloomberg. ♪

kathleen: anticipation is where speech from kim jong-un after he skipped the traditional new year's address. that leaves washington guessing how he will approach the joe biden administration. let's go to our east asian government editor. he issued a new year's letter. what is unusual about that? of northnce the time korea's founding after the cold war, the leader has almost always made a new year's address. but kim issued a brief letter, about 100 words or so. the new year's letter has not been done since 1995 when his father took over from kim il-sung.

it's a rare change from this tradition that has been going on for decades in north korea and it comes as north korea is about to have a major meeting, a congress of the workers party of korea. we are looking to the workers party congress. what's the significance given this is the first time we will be seeing this held in four years. is one of the biggest political events that will be held during his reign. last time we thought was about five years ago and this will sit out the economic and military policy for years to come. it comes as north korea's economy has been hit by jong-un shut kim the borders because of covid and the natural disasters wiped out farmland. it's the biggest contraction

since the mid-1990's when it was facing famine. this speech will be one of the biggest he has because it's going to give some indication of where he is going to take north korea as it is hit by sanctions -- is inconomy is and an imperiled state. it comes ahead of the inauguration of joe biden. we don't know when the congress is going to be held. we are waiting for word for the exact date. gettinge are just reaction from china telecom corp. the big mobile giants hit by the massive delisting story. try telecom saying it has not received a delisting notification from the new york stock exchange. that's just one of the names part of the action taken by the new york stock exchange on the basis of the executive order to remove these companies and their listing from the new york stock exchange.

we heard from china unicom issuing a statement saying they regret that determination and it would have an impact on trading prices and volumes of the early shares and depository receipts. we have heard from china telecom , saying they have not received the delisting notification from the new york stock exchange. we will continue to watch that story. let's get a check of the latest business flash headlines -- tesla delivered a record number of cars in the fourth quarter of 2020 but fell shy of its goal for half a million units of delivery for its full year. it supplied more than 180,000 vehicles in the last three months. they had 499,550 for the year. tesla says its delivery should be viewed as conservative and final numbers could vary by .5%. theasure is close to finishing line after two years of on and off talks in the

upending of the industry by the coronavirus pandemic. the combined company would be the fourth-largest carmaker. after the merger with renault. kathleen: let's get to the asian stock market and go back to sophie in hong kong. of the tokyo open, some stocks to watch -- japanese restaurants stocks may be asked to reduce opening hours, closing no later than 8 p.m.. know more when the premise or gives a press briefing later. where will also watching auto shares -- carmakers are expected to reduce production from january because of supply issues. and one company may sell its

overseas coal-fired power plant. and we coulddraw see that happen by 2030. matsui has coal-fired power plants in china, malaysia and morocco. you are looking at live pictures coming from tokyo. the stock exchange holding its traditional opening day ceremony to mark the first day of trading in 2021. we are hearing from the japanese finance minister. making comments about the economic recovery and the economy remains in a severe condition as the country battles the virus. we will be hearing from the prime minister later on today as he is expected to lay out further containment measures. of market open in tokyo, one the markets that will be coming online in the next few minutes. we will get the latest on that market open, next.

this is bloomberg. ♪

kathleen: welcome to daybreak asia from bloomberg's world headquarters in new york, i'm kathleen hays. haidi: japanese markets have just open for trade. -- 2021 at records, the greenback is drifting in asian trade, sterling is weakening on lockdowns. the top u.s. disease expert says

vaccinations are getting on track as president trump questions and numbers. japan will be laying out its new measures later on but no state of emergency seen for tokyo. and will potential upheaval on wall street -- china oil majors may be shown the door as they agree to expel telecom companies this week. haidi: some breaking news on the singapore economy -- gdp contracting three point 8%. that's a little less weak than our bloomberg surveillance for a decline of 4.7%. the third quarter gdp number revised to be less week, down 5.8% when it was originally reported. economyentire year, the contracted by 5.8% -- a bad year for singapore, but compared to other asian economies, not as bad as people expected and

certainly not as bad as the deep declines we have seen. some of the pluses were an increase in public transit usage which pointed to a less bad contraction in gdp. the contraction in consumer credit in october and the dropping car sales was less pronounced. nearly 18% plunge in the third quarter, so not so bad. less bad news than expected and when it comes to the virus and lockdowns, this is considered in many places good news. let's move to south korea's markets opening at a later hour. let's get to all the action in tokyo. sophie: we are seeing stocks build on gains. the top 20,000 -- the top 1800ding the rise above points. a close eye on restaurant stocks on reporting they will be asked to reduce their opening hours.

we have the prime minister's briefing in focus later today and ahead of that, the finance minister saying the japanese economy remains in a severe situation and amid that risk off sentiment, you have jgb finding some support and we take a look at cash treasury at the start of trade in asia. you have the 10 year yield for treasury above 92 basis points. let's check on the moves in sydney this morning. ground, all sectors in the green, travel stocks are under pressure as we have virus clusters in australia remaining a concern. morninginally this while the u.n. is holding below 650 against the greenback as we are waiting on a gauge of private factory activity data from the mainland.

talking $1000 and we are -- topping $1000. bitcoin under some pressure, below $33,000. line isoining us on the franklin zimmer, the head of asian equity. happy new year. in terms of the continuation of the record rally we saw into the end of last year, do we continue to see strength and outperformance in the economies in the markets where there has been a proven well handled scenario when it comes to the virus? looking at the likes of china and south korea, the two top performers in asia last year. what we have seen in the marketsonths is all the have been quite strong in asia. you still have the chinese

equity market which is rising, but it is rising somewhat less then the rest of the market. rotationeing a little into some more cyclical markets ich as the korean market and think this is probably going to continue extending in the third quarter of this year. due first of all to the -- to what started in the previous quarter and what will continue this year. to a number of technical headwinds we are seeing on the chinese equity market. haidi: which assets do you see being the outperformance for

2021? this is our first question of the day from our markets blog. do you continue to look at equities? particularly as we see the likes of bitcoin and a cerium rallying so strongly? markets ine equity our view seems to be a good place to be. we are broadly speaking abletions which are quite and you are going to see a year where the earnings are going to recur quite sharply and this is going to have some impact in markets like korea or in the euro area if we go out of the u.s. despite the goodyear that we had in 2020, it is going to remain

and interesting place. if i stay in asia, it's interesting to observe whether the -- whether japan and all the rest of asia, investors have been under owning the market and we are seeing some flow back into equity and this is something that has only started in october and november last year. the overall big picture for the equity market is remaining favorable. you are positive on japan. we were watching the annual opening trade ceremony coming from the tokyo stock exchange and yet we heard the deputy prime minister say the japan economy is still in a tough situation.

drive theg to positive move you see in equities this year? would say you have at least three elements. is more than 27,000 for the nikkei. the market is undervalued, whether i look at some longtime price earning when -- remember you have three years of contraction in earnings and this year, you are going to have some fiscal policy which is going to be pretty aggressive. you are going to have a low base recover, so the market is really not very expensive. the market is also quite under owned since 2017. japan andhe bank of

the foreign investor which has remained on the sideline now starting to come back and don't forget in japan, you have some quite strong corporate balance so what you see in a number of developed markets, this is something you will start to see a bit more headwind on the market with some debt coming may be the second half of this year and japanese corporate's are well-positioned in my opinion. athleen: let's move onto couple more asian markets. raised your rating for india and indonesia. what's driving those positive views? in the case of indonesia,

the valuation has been getting to what we could see and the last 10, 12, 15 years. we used to be underweight on the market and we find it would be a risk to remain underweight when we see acceleration of growth hope and theine economy to recover. ofcourse there are plenty issues but given the level of valuation we are, we find the risk has reverted. thehe case of india where evaluation is not as low, it has already become richer.

where we aremarket seeing a green shot in the economy where we are seeing the prospect of controlling the getting somewhat better and where you have a cyclical sector with indian on one of them we did find some upside potential. big factor is where the u.s. dollar heads from there. it had its biggest loss annually in about three years. do you expect those losses will continue? reasons weof the have a more positive view on the been easinges has .f financial conditions

asia,nk in the case of some we could see appreciation in the growth of one of the main 2021s in our strategy for -- and with some risk on the currency which is still remaining, so we are there. kathleen: let's get to karina mitchell for the first word headlines. karina: president trump has been recorded urging election officials to find thousands of

votes to put the state result for him as he disputes joe biden's win. in an hour long call, he flattered and threatened officials to act in his favor. congress meets this week to ratify election results. an official recount says joe biden one georgia. president trump: all i want to do is this -- i just want to 11,000 -- 11,780 votes, which is one more than we have because we won the state. a top u.s. virus expert says the vaccine rollout is picking up. earlier, anthony fauci warned jabs were well behind projections. new infections hit a record in arizona though new york's cases slowed. rising u.k. cases are prompting demand's right national lockdown that calls for new measures within days.

sydney imposes mandatory mask wearing amid youth virus clusters at the peak of the southern hemisphere's summer. inryone must wear masks public and in places of worship. is unlikely to include a state of emergency in tokyo. restaurants will be asked to close starting at 8 p.m.. china says it is confident the economic recovery will continue this year through improved supply-side regulations in industrial sectors. state media says the national bureau of statistics aimed to expand domestic demand through regional development to offset weakness in the global economy. however they note continuing challenges posed by coronavirus. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg.

ahead, and outlook for the chinese markets in the year ahead and after the telcos, chinese oil giants could be next for delisting in the u.s. those details just ahead. this is bloomberg. ♪ - i sent your new prescription to the pharmacy. - any idea how much it will cost? - you have a choice. insurance or goodrx. - i have insurance. - insurance is not what it used to be. people struggle to get their prescription covered

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haidi: the chinese oil majors may be next for delisting in the u.s. after the new york stock exchange announced it would remove the three biggest telecom companies. ours get more from executive editor. is there a sense of inevitability these oil companies will be next? would nothink people be surprised if that happened because the telcos are being delisted because the u.s. has put them on this list saying they are owned by the chinese military.

the national offshore oil company in china is on the same list. if the u.s. were going to take action, we've seen a number of steps taken by the trump administration in these waning days, that is a prime one. kathleen: i think there was a lot of hope with joe biden being and having the white house, things should be softening a bit. this just seems to underscore things to be icy. fundamentally, the relationship is not going to change because who sits in the white house changes. china relative to the u.s., militarily, economically, diplomatically is getting stronger and stronger, so the two countries have to figure out how they are going to react to that. on a day to day basis, will the relationship be less volatile, less bombastic, that is potentially yes.

kathleen: if this road is walks down where the u.s. administration and congress are cang to be tough on china, we expect retaliation from china? there will almost certainly be some sort of retaliation. the question is what sort of magnitude of action we will see from beijing. up to this point, beijing has tried to take a strategy where it has taken symmetrical steps to retaliate. so showing it is not going to stand down and it's not escalating things excessively, i would expect that sort of strategy to continue. so much. thank you coming up, betting on bitcoin. we take a look at what is driving its astonishing search.

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haidi: let's take a look at the markets on this first trading day of the new year. japan, we saw that first opening day of the new year ceremony. the nikkei getting a slow and steady start. we are expecting some of that portion to play out. we are waiting to hear from the prime minister to lay out some of these extra measures when it comes to the battle against the pandemic. we know no state of emergency will be declared despite tokyo seeing cases more than 1000 and a day for the first time and we are watching some of the pandemic related shares in this session as well and when it

comes to trading in korea, a big winner in asia last year and we will continue to see if that rally continues. kathleen: another rally we are wondering if it's going to continue is bitcoin -- hitting record highs as we enter the new year, gaining almost 10%, rising above $34,000 before retreating a bit in london trading. our cross that -- cross asset team manager joins us in singapore. what are you hearing as the first trading day of the new year gets underway? guest: it is amazing. if you look at the graph, it is parabolic and we only got above 20,000 at mid-summer and now it threatened 35,000. so people are buying into the narrative that there is more institutional appeal.

it is an asset allocation for many people now and people think it has less volatility than it used to. at the same time, it is still somewhat volatile as we can see it retreated from its highs and we will have to see if it has staying power. it is the speed of this rally. what explains the big jump in price? you have people who have been worried about all the stimulus flooding in to fiat currencies from the pandemic and that boosts the appeal. you also have paypal allowing people to buy from there and institutions saying this makes sense to have as a small part of my portfolio. we've had more investors saying it, so you have had more acceptance that this is an

exceptional rally and more than 10% to start the year is incredible. behleen: it seems to catching fire with other crypto currencies as well. what are you tracking there? joanna? ok -- ondi: the meteoric rise bitcoin. we get more outlook on the cryptocurrency on daybreak. it's on the terminal and available on the bloomberg anywhere app. let's get a check of the business flash headlines. tesla delivered a record number of cars in the fourth quarter but fell fractionally shy of its goal for half a million units for the full year. the company supplied more than 180,000 vehicles in the last month. its delivery should

be viewed as slightly conservative and those numbers could vary by .5% or more. chryslerr between fiat and psa is close to the finish line after two years of on and off talks and the upending of the industry by the coronavirus pandemic. on monday, investors will be asked to approve a combined company which would be the fourth-largest carmaker in the world. the success comes after they tried to merge with renault. a chineseicked up company for a multibillion dollar deal. there is no official identification of the company but bloomberg has reported it concerns a subsidiary of china's largest defense contractor. iraqi state news says to chinese into european companies were in the running and china won the contract. one of apples top asian

suppliers has suspended its president after he was arrested in southern china. no details were offered but reports say he was taken away by police last wednesday over alleged fraud. authorities say he has been released. with an iphoneg assembler. neither company has been paired to comment. coming up, singapore takes the covid battle to export. the maritime sector -- we will have the latest there. this is bloomberg. ♪

karina: this is daybreak asia. i'm karina mitchell. the u.s. is ramping up pressure on china after the potential removal of telco. companies may be banned over alleged links to the military. china mobile, china telecom, and china unicom are expected to be delisted soon. china mobile says it has not received notification from the new york stock exchange while the other to regret the decision. in other news, the u.s. congress has met with first time with nancy pelosi winning another term as house speaker.

calls for a new generation of leadership. there was no other candidate and she achieve the required 50% of the vote to secure the gavel. it could be a momentous week with members preparing to debate and ratify joe biden's election win. to the u.k., financial firms have won a life line from italy where they can continue to do business even as non-eu companies. rome says it applies to any firms that applied before the end of last year. the u.k. and single market clinched a deal but critics say it accounts for 80% of the u.k. economy. byia's trade deficit jumped 26% as imports surged. inbound shipment rose 7% and exports flatlined. gold imports ballooned more than 80% from december of 2019 while

petroleum products on the biggest decline for any commodity measure and pharmaceuticals saw the biggest rise in export value. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell stop -- i'm karina mitchell. this is bloomberg. athleen: now for a look asian markets, we are going to go back to sophie in hong kong. what do you have your eye on? sophie: new zealand markets closed for the long weekend. markets coming online an hour later. japanese stocks heading lower after the nikkei closed out above 27 thousand. aussie shares are gaining ground this morning after thursday mark october 4.

trading at a june 2020 high after the read on pmi and the euro is in focus meaning ground with the pound helping to boost it following the brexit deal. pulling up the chart on the terminal to gauge how the stocks around the world closed out 2020, this is how we have asian stocks faring in white on the chart. year to date gains of 17% asianing u.s. stocks stocks help to ride the boost for a cyclical -- cyclical recovery. southeast asian laggards getting some upward momentum but pulling up the board, we had singapore stocks catching some of that when.

saw the november rally, closing out 2020 on asia. we have some of those pmi readings just moments ago and this is what we saw in terms of the recovery. with anrea unchanged acceleration. also an improvement when it comes to indonesia and other parts of southeast asia. japan manufacturing pmi coming through as well, but look whenkly take a it comes to japan, a modest improvement. let's start with singapore because we had gdp numbers showing the contraction with

those q4 numbers, which were obviously not great but less bad than expected. it is an improvement, an improvement from the third quarter. expectations were for a contraction of 4.7% of the year. 5%, 5.8% versus expectations, so overall better than expected but not to take away from the fact that this is the worst since independence in 1965. as the prime minister said, singapore is not out of the woods yet. the recovery we are seeing so far is uneven and that is expected for quite some time. the issue is tourism and trade. they have been impacted a great

deal. it is pretty much dependent on the global recovery. you talk about those pmi's you read throughout the region, singapore is a reflection of what's happening in asia. sincecturing improving november evening a lift to the economies around the region and expected to remain so. singapore has said if the recovery is there, it will pump 100more money already, billion dollars, it is preparing to do more and keep a watch on that gdp or the budget coming up and that will help address the issues if needed. smallen: singapore is a economy and is depending not only on its asian neighbors but on europe and the u.s. it's always had to reinvent

itself to survive. it now this question of can bring back business travels dressed -- business travelers be on the pandemic. it accounts for about 4% of gdp. aviation, 3% of gdp. -- tryre has to try with to revive travel in some way and ,ne way it is trying to do that china airport is iconic and recently, it has said it wants this entertainment center in the last area of jewel. it will cost about 240 dollars and it is an attempt to bring back travel.

it is building a lot of reading rooms and wants to attract travelers back not far away from the airport so that it can revive aviation at the same time. there airport is one of the best. lumpur rail deal -- wire we seeing it fail? haslinda: this has been problematic from the get-go. after eight years of toldiations, we are malaysia wanted to make tweaks to the contract that both sides failed to come to an agreement , so no speedne rail between the two cities which would have cut travel time from five hours to 90 minutes and that would have encouraged haveess but both sides

said they will continue to work together and try to revive this project. it looks like it will be a beautiful structure. thank you for joining us and covering so much ground. to india and regulators having given use to emergency approval of two covid-19 vaccines, clearing the way for one of the world's biggest immunization drives. astrazeneca's jab has been given the nod plus a locally developed shot manufactured by barack fire tech. we spoke about the logistical challenges ahead. >> we are making it like the vaccine right now which is

making efficacy trial. the one difference between us and the chinese vaccine is we andusing a small molecule adding a hydroxy gel to that. so you are making more response in the body. >> what is it? is it mrna or a more traditional approach? >> it is 35 to 40 years old technology. the nice thing about this vaccine is you can give it to a newborn baby. like the injectable polio vaccine, lots of other vaccines are produced in that form. >> if we see further mutations like the one we have seen in the u.k., with this particular treatment be able to deal with that? [indiscernible]

yet but weve data are in the process of that. >> let's talk about efficacy of the vaccine. where are you with it and what are you aiming for ultimately? 50%ne has to have minimum to be approved by the european agency. but how much we are going to get, we do not know yet. for the phase one and two data, we get almost 100%. post jabdays 98.5%.tion, we look at that is very significant. >> some of the vaccines like the ones from pfizer or astrazeneca get emergency approval based on a global study. the thing is they would not have studied the immune response of indians. is this something which could harm indigenous drugmakers where

you are? >> we -- [indiscernible] that anglelook at and if they look at that angle, we have scored higher than anybody else. >> how do you get this to the people? what are cold storage facilities like in india and what is the logistical challenge you face? >> the vaccines are very stable. if somebody kept it one week at room temperature, it is still stable. >> how do you rate the government's response to the pandemic and are you working with them to come up with a plan to immunize vast numbers of people? >> we have a good system in place in the country. million and the

government is thinking 20 million people. possible. >> will you be making money from all of this? that's the big question. >> many people are losing a job. it's an opportunity for us to help the community. i don't want to look at it like a typical capitalistic model on how to make money. we are not taking any money from the government of india. sorything we have done was they responsibility to help the public and that is how we have done it. >> you say you are working with other countries. can you tell us of any licensing agreements you have signed? >> we have 10 or 12 countries and we don't mind doing a technology transfer, but we need a commitment and that's a major

problem. we are looking at may be a better strategy that can be to other parts of the world quickly. >> kidding back to the business itself, you have been in business two decades. any plans to float on the stock market? >> not exactly. i am a scientist and i enjoy my freedom. went to private capital, i would have do some other vaccine. i am 65 and before i die, i want to make some impact. >> do you see another pandemic on the horizon? >> 100% sure about that. it may come for human, it may come from animal, it may come from plants, anything may come. coming up next, the chinese markets open for the year. we will be discussing what is in store for investors.

this is bloomberg. ♪

kathleen: china stocks in bigger focus with oil major stocks being next in line for delisting in the united states after the new york stock exchange said it removes the country's three biggest telecom companies. the index closed at a five-year

high last week. lots to talk about. let's bring in the managing director and head of research at faux, international. thank you for joining us. in terms of this delisting, china mobile and china unicom saying we have not heard anything from the new york stock exchange yet. the processep back, starting at the new york stock exchange in the u.s., does it concern you about the health of the stock market overall because it puts more focus on deteriorated chinese relations? >> it is not a happy scenario. they are partly government owned and part of the reform from the early 2000.

just to show the government has the resolve to reform. i think until now, even though they are one of the largest thes in china, some of internet companies, many of them are out of japan. i think the index as well. i would think it is not an ideal scenario but at the same time, these companies are past their .rime kathleen: when we look at what will be the positive driving factor, is this going to be the force that started the rally going in 2020 which is china

went into the virus, handled it well, first out, recovery -- you can quibble about how strong it is but nonetheless, positive growth. is that what you are counting on for this bullish scenario? china has been managing the virus relatively well when compared with other countries. overall, i would not be surprised to see in the first half of next year, they recovery strangled would be better than expected. the vaccination is going well with the rest of the world and i think we will be entering into a strong recovery mode. i think in terms of those

if thereompanies, even are a list of chinese companies, they are very low, they are , so they areld valuable plays in the stock market. notink u.s. investors may be able to buy them anymore, but they can sell them on to the and they wouldt be able to pick it up at a cheaper price. butscenario isn't ideal someone would be more than willing to pick them up on the cheap. glad you talk about value and the concept of cheapness. how do you quantify value? what is the value in chinese

markets at the moment? value traditional valuation metrics even? past: i think in the decade, we've seen many chinese companies creating lots of value for shareholders. time, things with the valuation have been getting cheaper. some of these are cyclical names and these names have been around for years and years. in 2020, they had a good rebound. the rebound can be a much more sustainable trend where they could get out of the other

growth sectors based on the back of a strong recovery. normally in the third quarter of , we would play the technical sectors so i would not based on the hope for a strong economic recovery. what kind of year is it going to be for chinese e-commerce? as we continue to watch what happens with ads and alibaba and the new rules, is this ultimately a sector you expect will come out even more resilient with streamlining? i would say these companies have proven especially during the worst part of the virus outbreak.

i think they will lay out a very strong platform in the marketplace that makes them very difficult to compete with, so i would not be surprised to see these companies continue to grow very strongly, not because they they have so big, tremendous market power that thinkto be checked, so i helpegulation is rather to the smaller part of the economy to better use these platforms to build a better company. are somethere uncertainties overhanging these they are underse the circumspection of the regulators but at the same time, in the next couple of years, i

would not be surprised to see them grow very strongly. many thanks, as always. on the alibabawn group is drawing comparisons with russia's moves against the country's richest man in 2003. do you see similarities when it comes to the cases of jack ma and what he's going through and mara kospi? important -- jack ma did not come through the chaotic privatization time. that's not how he built his empire and was not involved in the political machinations. was put behind bars as a

result. but i do see similarities for the pension of bringing down entrepreneurs with precision strikes regardless of the financial impact. here the impact has been very large. the similarities are for the regime, both of them came in for criticism after moments where they themselves could cite the symptoms. jack ma gave his very important shanghai speech. is there an optimistic reading for this situation of jack ma and alibaba rather than a pessimistic one? clara: that is not what we are suggesting here. the most optimistic one is as your previous guest said, and antitrust adjustment and a lot of people would say these are questions that are long overdue

in china and beyond. in that reading, it's the system adjusting itself and might be good for some of the smaller players in china's tech space. it's also a relatively young antitrust system which can overcompensate. that's the best case we are seeing, an adjustment to the system that has allowed these companies to rome a little too freely. r bloomberg opinion columns there. the chinese and u.s. relationship is headed over the coming year. and why investors should be on their toes given the potential risks of a position squeeze. that's it for daybreak asia. our markets coverage continue as we look to the start of trading in seoul, hong kong and shenzhen. stay tuned for china open. this is bloomberg. ♪

>> is not :00 a.m.. i am tom mackenzie. david: i am david ingles. you're counting down to the first trading session of 2021. more potential upheaval on wall street. china's energy majors