>> good morning. i am haidi stroud-watts incident. >> i am shery ahn in new york. cass at the heart of american democracy. protesters storm the capital, shots are fired with this one person wounded. president trump and joe biden call for calm.

the democrats are winning senate races. party --'s party will have control of the chamber the first time in six years. two of china's top tech stop -- be addedstocks could to a black list. all eyes were focused on those stunning pictures out of capitol hill with some supporters start -- storming the halls of congress. we saw them rushing past police barriers at the capital. debate over joe biden's election has been suspended. we don't know when congress will resume liberating. we heard from lawmakers that they want to get this through. already, tensions are pretty high as we saw president trump

asking his supporters to stop the steel and make a stand for his presidency. those are pictures of capitol hill. curfewson, d.c. under at the moment. look at u.s. futures right now. when it came to the regular session, we saw regular reaction. we are seeing the nasdaq futures gaining ground. this continues into small-cap cyclical sectors. the 10 year yield getting past that for the first time since march. a little bit of pressure but still, it is about that $50 handle. let's turn to sophie kamaruddin. sophie: city stocks are opening higher. seeing the 10 year yield

trading at june levels, above 1% as we saw the moveon treasuries overnight. let's see what is going on in new zealand. futures -- future is gaining ground in chicago. let's keep a close eye on what energy stocks will be doing. the oil markets are at the early stage of imbalance. let's see what else is going on across assets as many are seeing them top 80, trading at december 2018 levels. the yen strength that we have seen of length, that is

garnering attention with that level a key level when it comes to maintaining profitability in japan. space, holdingd steady above 1920. haidi: president trump has told protesters who stormed the u.s. capitol to go home. hours after they marched on the center of american democracy. pain, i knowr you're hurt, we had an election that was stolen from us. it was a landslide election. everyone knows it. especially the other side. but you have to go home now. we have to have peace. biden: this hour, our democracy is under unprecedented

assault. unlike anything we have seen in modern times. an assault on the citadel of liberty. of course, we continue to hear the rhetoric from president trump even as he called on protesters to go home and restore peace. he said he understood their anger because he continues to think the election was stolen. we are just getting this tweet from president trump now. he tweeted these are the things and events that happen when a sacred landslide election victory is so unceremoniously and viciously stripped away from patriots who have been badly and unfairly treated for so long. go home with love and in peace. remember this day forever. keeping it up seemed to

exacerbate the risk of inciting more virus -- inciting more violence. we continue to see the same narrative, the go home peacefully but i understand why you're here. that is the line from president trump. first off, tell us what it is like in the capital at the moment. the building is now secure. the curfew kickstand, just a couple of minutes ago, there was some protesters milling about. the situation has improved. the house has said they will come back tonight and continue to liberating. they decided they are all meeting in a secure room in the capital.

ted cruz and josh hawley are all meeting in a separate room, discussing this. there has been some push for republicans to not go through with those plans. >> were to be go from here? how long will this process take? will we see those objections withdrawn? >> that is an excellent question. it depends or whether they are able to come back tonight. it could be up to two hours of debate. it would have been 12 hours of debate. there is a lot of pressure on these senators, there are other republican saying this will be more device -- more divisive. this will cause more unrest, please don't do this.

davidwant to bring in westin. where to begun from here? i want to ask you how the united states of america got here. peace for transfer of power, what is supposed to be a key of any democracy. >> even sacred. i think it is a terrific question. at the same time, as you look back over it, it is shocking for any american, anyone, anywhere to see those vandals and writers breaking into not just a capitol building but the senate chamber, the house chamber. those are very special places. it should not be very surprising. president trump is leading a group of people and saying we have not believed these elections for months now. he said we are not sure if it is fair, they may try to steal it. he got up on -- in the white

house and said it will not be legitimate for joe biden to be president of the united states, it was stolen. that thisunderstand was a travesty, what happened here. president trump called on demonstrators to come to washington and demonstrate on the day. it is shocking but maybe not surprising. >> james clyburn said the certification process for the elect tyler -- electoral college vote will contingent a. as we compare this to the market , what isback in june the sense -- we have a very divided society. it has certainly been driven home here. you're right, we had the

demonstrations in the aftermath of these police killings. there was a lot of damage done and writing done. there was hooliganism. armed saidm who were they see armed people coming to the capital and attacking the capital itself. it is very different. president trump was the one who condemned all those demonstrations back in the summer and condemned the violence and said we may have to pull in the military to deal with it. the shoe is very much on the other foot and it can't be a very comfortable place for a lot of republicans right now. >> that was david westin. we are told that the woman who was shot during the capital protest has died. let's look at where this was going. we are talking with both laura and david about this tentative

element out of capitol hill. into thest storming halls of congress, give us your reaction about the magnitude of what has happened today. u.s. is the first time the has been assaulted in this way since the war of 1812. it is a remarkable thing to see. i have been in and around those hallways. around the senate chamber there. it is a very well fortified area. it is an area that requires a lot of checklist to get to. breached, torea see protesters occupying the seat of the senate president, the presiding officer of the u.s. senate, it is shocking to see these things. and yet somewhat predictable as well in terms of how divisive our politics have come.

these are element of our political story in the u.s.. it is sad and disconcerting to see. >> even as we hear the president asking his supporters to go home and calling for peace, this is what he asked for, this is what he called for, for his -- he said he was hard done by. this is the level of protest he was looking for. as we report that one woman has died, how much of this responsibility is really with the president? >> the president animated a lot of feelings of unrest. they are that of people that are disappointed with the electoral outcome. any election in america, there will be disappointment. that is something we have to understand about the american system of democracy. there are two sides.

one side will be pleased and the other side will not be. it is the responsibility of leadership to say election is over. i wish they had spoken differently but they did not. that is not a message that the president has delivered yet. the one message he needs to deliver clearly -- i am not necessarily expecting him to do this but it is a message that i think our society in america would be better off for. if you're able to say let's set differences aside and address some of the problems we face in society, that is not something the president has said. >> one of the moment that led up to this moment in history is we have seen various republican politicians condone the president's actions. how did the gop get back together after this. >> the first thing it has to do is abandon any notion that there should be further challenges to

the election. i think people have made their views clear. we have done a lot of discussion and debate over this. the next thing is to become a governing party again. to set out a vision of what it means to be republican and make policy as a republican that is not about just supporting what donald trump wants. i think it is important for the party to set aside those notions of being tied to one person and they need to be able to articulate a governing vision. until it does that, it will be remarkably different -- difficult to move past some of this. >> are you worried that we will be here again in four years time? even a few weeks time? you think the power and influence of president trump will continue in the party? >> i think the president will continue to have some influence after he leaves office. the question will be how much and with how many people. i hope we don't end up here

again. this is a disgusting place for america to be. somepe -- you have had have causedo violence that caused someone's death. that was lanhee chen th ere. next, we will discuss the rollout of the vaccine. next, the market perspective on the democratic senate when. this is bloomberg. ♪

haidi: you are looking at live shots there. it has been a remarkable few hours in washington dc. u.s. capitol is being declared as secure by officials in washington following a day of what was incredible unrest and violence brought on by trump supporters who stormed capitol hill. we heard from the president in a two week, continuing to criticize what he called a landslide election that was unceremoniously and viciously stripped away. even as he called on his supporters to go home and restore peace. we also heard from d.c. police amidst that violence that one woman has died. let's look at the market reaction now. what do we make of the scenes we have been seeing all morning in washington? as we continue to wash these -- watch these things,

when it comes to the political ,ide of things, georgia runoff what does that mean to you in terms of policymaking, going forward? >> sure. i am condemning the violence we have seen. the georgia runoff showed some of the more extreme statements that republicans or certainly, the president made, especially with regards to the georgia secretary of state, it really had an effect on the one-off elections in georgia. it pointed the way to a much more moderate conversation going forward. i know that is hard to see right now but the reality is some extreme statements may have pushed that election away from the republicans.

what you are seeing today is many elected officials making statements, also condemning this violence and talking about coming together. looking forward, now we have a very narrow margin in the senate. this is for a biden agenda and what the markets are doing is saying we might get more stimulus, we might get higher rates. that is what we are seeing in the marketplace today. haidi: you see these tragic events playing out. this is about the question of democracy coming under threat. are they pressing for a goldilocks scenario? the democrats probably won't have enough in the senate to push through some of the more

market avers policies. is -- averse policies. >> that is what we are seeing. stimulus is the bipartisan subject. it is a matter of how much and when and not if. i think the tax code will be too hard to tackle. the more difficult things to pass, the real changes in policy are much less likely today. even with the georgia runoff elections. encouraged by the fact that i think you are seeing some republicans and generally, people within government be aghast at what has happened today but also recognizing that some extreme conversation really pushed voters away. i am optimistic that there will be a lot more moderation going

forward. >> we have the latest fashion coming from the bank of america ceo. this called -- they call the events of capitol hill appalling. respectfully, we have heard from other wall street firm ceos as well, talking about the violence he saw today. of course, going back to the markets, we have seen this win, the democratic takeover of the senate majority leading to that yield curve steepening and financially gaining ground. >> yes, brian moynihan's firm gained a lot of market capital today. it seems crazy to talk about it but when you think about market reactions, what you can look at is a real rotation. the steepening of the yield curve, the selloff in treasuries, advise in yield is a significant headwind for some of the market leadership from 2020. and also, a tailwind for the

real laggards. cyclicalome of the names, including financials. it always drives me crazy that the change in the calendar actually matters. it seems like one day is really the same as the next but what we have seen is that change in calendar indicated a change in market leadership toward a cyclical recovery. >> this chart on the bloomberg is showing how rates have rallied. when does this become an issue? how far above 1%? repricing.e some now that we have a democratic sweep in georgia. etiquette is already an issue. i think you are seeing that rotation. today, it was a fairly significant one. as i talk to clients, there are some people who are overextended on the gross side. you really have to have within

your equity portfolio, balance, not just with regards to cyclicals but also, internationally, relative to the u.s.. a broader global exposure. that has not been what has worked in 2020 and i think it will be effective, going forward. i think we are there now. what will be interesting is the federal reserve reaction in the context of if they increase the purchase of treasuries or locked down curves, even in the face of what looks like an ok recovery. importantthing is employment figures. >> i was just about to pick up on what the fed does next. from atlanta saying that they could taper this year. is this a risk? when you take a look at the liquidity driven rallies, does that mean we need to see some of those earning results come in

phenomenally well to justify the pricing? phenomenally well, at least as well as expectations if not better. remember, there will be bumps on the road. when you listen to raphael speaks reasonably. all federal reserve officials are reasonable. cast your mind back. that was not the first time that bernanke had talked about potentially removing a combination. it happened to be in the middle of that vulnerable market moment and things went haywire. i would say that today, valuations and a lot of assets could be challenged in the context of a continued cyclical rally. just remember, this rotation can have a negative side. not just in the context of being a headwind for growth but also being a headwind for a lot of fixed income investors. >> great to have your thoughts. his markete ceo with

views with everything that is happening today. let's cross back to balance of power host, david westin. i just digesting the magnitude of the events that transpired. and into the frustrations of trump supporters, the democrats will take power of the senate. it is a one-vote majority. what does this mean for biden's agenda? >> such an important point. david: there was this development that both the senate seats and for democrats. that gives us 50-50 in the senate. that means the vice president will be able to break the tie. it means, very importantly that chuck schumer will be the majority leader rather than mitch mcconnell. that means they get to decide what goes to the floor. it will make it much easier for

president-elect biden to get his nominees through. at the same time, it will not necessarily make it easier to have sweeping social legislation, a lot of taxation bills and spending bills. andusually need 60 votes not 51 votes. even on the budget reconciliation, you have a joe manchin, a very moderate democrat in west virginia that will not go for a lot of big, sweeping social reform programs. we are seeing that sanguine reaction on the markets. hoping for that goldilocks scenario. i am wondering, with everything we have seen over the last few hours, some of the rhetoric leading goptrump, members are really condoning behavior and the action of the president. are we likely to get reconciliation on a party level

and a partisan level, going forward? the god'sur lips to ears. everyone would love that. it has been a long time we -- since we have seen as a practical matter. practical matter. there will be -- have to be - 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 and prices keep rising.

i recommend goodrx. you get free coupons to save on your prescriptions. - [narrator] compare prices to get the best discounts. - goodrx, smart. - [narrator] stop paying too much for your prescriptions. download the free app today. with joe biden taking office, in about 14 days, what do you make of regulatory changes? especially given that while all this violence was happening, we saw google, facebook pulling down that video from president trump where he told supporters to go home but he also said that he won in a landslide victory. david: he certainly 7000 with the rioters. he sympathized with them and understood how they felt. he loved them. he said that in the first video. those actions by google and youtube to take on the videos did not happen in a vacuum. there were several prominent figures in silicon valley that

were calling on social media to be much more diligent. this is an issue that has been around washington for some david: it is certainly front and center now and one would expect something may get done. that's why am reporting to you from that aspect. haidi: david westin. let's get you to corrina mitchell was first word headlines this hour. -- karina mitchell. karina: there is other news to tell you about. famous tech stocks are in the spotlight with u.s. officials said to be considering an order prohibiting americans from investing in them. alibaba and tencent are the latest to face action from the trump administration as the state department discusses expanding action against companies deemed to be linked to the chinese military. china says the u.s. has been flip-flopping on policy for years, calling for respect for

market principles amid the uncertainty over mainland companies trading in new york. the foreign ministry says the trump administration has been oppressing overseas firms, warning the policy will hurt the u.s. more than china. beijing says action against chinese companies will undermine america in global markets and u.k. government is warning the latest drivers locked down will last for several months as reported infections hit their highest levels since april. boris johnson called parliament that pandemic restrictions will be lifted only gradually as the situation changes. the lockdown is expected to sla sh the u.k.'s economic growth. rising virus numbers in japan are expected to trigger a state of emergency in tokyo. local media say prime minister suga will impose new measures which will last at least one month. the move empowers authorities to keep people at home and order businesses to close or limit their operation. bloomberg economics use the

emergency cutting .7% off national gdp. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi. china's leading coronavirus efforts has suspended the country's delay, releasing an early alarm, and admitted shortcomings in the way. beijing has cooperated with the world health organization. the doctor once the senior official at the national health commission of china and oversaw beijing's virus response until september. he spoke exclusively to bloomberg. [speaking mandarin] >> i think this suggestion is normal and reasonable. first, it will not hamper our effort in tracing the virus origins. provides a new idea and path for scientists to trace the virus, but eventually,

scientists will answer the question of where the virus came from. >> the food market was in focus at the beginning of this outbreak as potentially the source for the outbreak in wuhan, the market where they sold wild animal spirit of what is your view of the role the market played in the outbreak we saw in wuhan? mandarin]eaking >> we are not able to conclude that the virus already donated in the seafood market. we can only told that the first reported case is likely related to it. assuming that the patient was exposed to the virus at the moment, we need to have further research to figure out where that virus came from. whether it's from animal or from cold goods, or from a human. liang: [speaking mandarin]

>> i need to point out that the seafood market is probably not the beginning of the chain. >> looking back, are there things that could have been done better in terms of the cooperation between china, chinese experts, and the who, more effective cooperation? liang: [speaking mandarin] >> we indeed have a few shortcomings. public healthr experts and clinical physicians can introduce our practice and communicate the information in a way that can be understood by their global peers. and few of them are familiar with international guidelines. we do need to strengthen these types of capabilities. liang: [speaking mandarin] tom: you said yourself you went on the ground in wuhan and you

are acting as though this were a transmissible disease. the world health organization put out a statement saying there is no evidence of human transmission and they say that is based on chinese data. what happened? liang: [speaking mandarin] >> what we provided the world health organization in early january is the evidence shows that the possibility of human to human transmission cannot be ruled out. that is to say, we did not find clear evidence of human to human transmission. that was the expression, but we did not say it's not transmissible through humans. liang: [speaking mandarin] >> among the 700 and close contact in early january -- in close contact in early january, many with exposure to the market , none felt sick in the 14 day quarantine. neither did the 400 medical staff in contact with covid patients.

so there was not sufficient evidence at the time to determine human to human transmission. dr. liang wannian, speaking exclusively to tom mackenzie there. the biggest global vaccination campaign in history is underway with about 16 million shots administered so far and china has given more than one quarter of those. to discuss the chinese vaccine rollout and its handling of the pandemic, we are joined by the rand corporation senior policy -- ite of the points made, is fair for western nations, the likes of australia, for example, to be heavily critical of the way that china has handled the virus outbreak and continued to handle it, given we have seen the world health organization investigators having a series of troubles of even being able to access the country for their investigations? that it's in a way

unfortunate that we have seen issue beic health politicized. geopolitics and ation of the problem has made countries insecure in that -- that in no way can help scientists to find .he source of the pandemic in that, i feel it is unfortunate. ways -- political system of china actually help it when it comes to things like rolling out a vaccination program nationally? of ther: so in terms pharmaceutical industry in china, before covid-19, it already had the capacity to produce 700 million vaccines for its domestic market.

which is about a quarter of the world it's overall vaccine production so china does have a huge capacity in vaccine manufacturing. in the last few years, we have also seen that china has independently produced new vaccines as well as ebola. thismeans china does have capacity developed. the other requirement for the vaccine to get on the world market would be the regulation. in 2017 ich, which is an international pharmaceutical standard committee and they increase their clinical data reports, harmonize

that to the global standards by 2022, so we see china is on the way to become more international ready for its pharmaceutical sector, but so far, the vaccine, they only have three vaccines that are available for the international market because manufacturers are not equipped yet. shery: not just that but there seems to be a lot of mistrust over chinese products, especially given that we saw china's exports in the beginning of the pandemic, not to mention ppe as well. how difficult is it for china right now to regain the trust of those developing economies that actually need china's vaccines? jennifer: i think it's reasonable for countries to question china's products quality partly because chinese

vaccines are not common on the world market. to be able to give to w.h.o. prequalification, the vaccine would need to -- it meets the requirements. to have all, they need good manufacturing practice and that means quite a lot to investments. they also need to publish the clinical data in english in renowned journals and that, i think, many of the manufacturers are working on that. thirdly, they need to submit toples to w.h.o., so that is meet the minimum requirement for w.h.o. prequalification, but it needs time and it needs technical know-how. shery: senior policy researcher jennifer bouey.

thank you for joining us. we will have plenty more to come on "daybreak asia." this is bloomberg. ♪

shery: we are expecting congressional proceedings to restart anytime soon. we are hearing from republican representative kathy mcmorris, dropping her opposition to joe biden's win. we are seeing more reaction to what happened today.

stephen schwarzman also saying that this insurrection is an affront to democratic values. let's bring back david westin and the director of domestic policy studies. thank you to you both for sticking around. we have heard repeatedly joe biden say that he will be the president for all americans, but of course, the country is so divided right now. what are we expecting in terms of political investigations now that we have the democrats taking over control of the u.s. senate? david: one of the things is why there was not better defense is made for the capital? there had been predictions of demonstrations leading up to this so a lot of people will be asking about the security we put up around the capital and in the capital of the united states, washington, d.c. hasnot sure that joe biden a big appetite for a lot of investigations right now. he says he wants to be the president for all the people. he wants to reach across the

aisle. he's going to need to do that even with the 50/50 split in the senate, and a fairly narrow majority in the house of representatives, so we will see. typically, you are right. when the majority shifts, you have a lot of investigations. i'm skeptical but lonnie may know better than i. seei: i'm curious to whether you think accountability would be useful going into the next four years. what would be most useful to you in terms of a strategy to bring not just the republican party together but the two parties together to be able to be productive as well as unifying the divisions that we continue to see across the country? be anhink there will appetite for some investigative activity from some democrats in congress. that's right. the biden team, the biden administration, i don't think they are particularly interested. i think they would rather move on and try and work on their agenda but i think some of the congress, now that democrats

will have control of the house and senate, some will want to look back to the trump era and will want to investigate that. in terms of what can heal the wounds at this point, i think a little bit of good old-fashioned bipartisan activity and the parties working together, demonstrating they can solve tough problems, and it's interesting, you know, because democrats will have a narrow majority in the senate as well as in the house, it's going to empower some of these more moderate voices. senators like joe mansion of west virginia on the democratic and, susan collins of maine mitt romney of utah on the republican side, there's going to be some incentive for those people to work together to actually get solutions. infrastructure, health care, energy, you name it. i am actually optimistic. i try to be optimistic during these dark times that we are going to see folks working together and that will bring people together as well. shery: what do you see in terms of priorities?

you are optimistic about what may happen in the next four years so give us your list of priorities of things that can get done right now with this very thin majority by the democrats in the senate. of course, they do have the house and some of the issues that will be too difficult to tackle, especially given joe biden's political capital. fewee: let's start with the areas of potential agreement. the first is infrastructure policy. there is a sense that we have to do something in the u.s. about our roads, bridges, airports, and ship ports. that is something the trump administration pledged to work on. they never got there. i think we will see some bipartisan movement in that direction. i think you will continue to see support for economic stimulus and support in the wake of and hopefully recovery from covid-19. there was that discussion about larger stimulus payments. i think that is a foregone conclusion. we will see bigger stimulus payments with democrats in charge. the last area i will point to that markets care about greatly, particularly in the health care space, is prescription drug

pricing. you'll see a more aggressive role for the federal government in the pricing of prescription drugs in the united states, something the pharmaceutical industry has been opposed to but it's coming because there is some bipartisan consensus around that. i don't see action on more intractable questions like climate change, like single-payer health care, like more aggressive action on financial regulation. i think in those areas, the change is going to be more muted. haidi: interesting given the climate is one of president biden's top priorities. david, i'm curious, there will be a temptation to go for that though hanging fruit, and the one issue we know does unite the two sides and does play very well domestically with the public, which is getting tough on china. do you think there's going to be much of a policy change in that perspective? lanhee: -- david: around the edges, in the tone, in the approach i don't think a biden administration wants to be known as the one who went soft on china. i think the attitude of much of

the west, particularly europe as well as the unit states -- united states has shifted to not hostility, but in the sense that we need to think tough about how you deal with china. i will say the one thing that there will be bipartisan support of that will rally people is the one thing i think drove this election and that is this pandemic. if there could be real bipartisan support for massive public health vaccination program and getting around that to get us past this pandemic, that would do more than anything i could imagine to heal the wounds. thoughts on the pandemic and these executive orders against china by presidential and whether joe biden will keep them. ashee: first of all, david, usual, spot on. i think if the democrats and republicans can come together and address covid-19, either its vaccine distribution, continuing to build public health infrastructure so we are prepared if this pandemic goes on a little bit longer than we hoped, those are things that

will garner bipartisan support and free up the economy to hopefully grow again. on the china question, what you are seeing in these last weeks of the trump administration is an effort to boxing the biden administration. to david's point, i don't think we will see too much change in policy and terms of being tougher edged on china. i think the rhetoric will be more measured. i think you will see much more careful approach, particularly on economic policy and trade issues, but fundamentally, there is going to be an effort to try to get tougher on china and i think some of that though hanging fruit is around, looking at companies that have ties or alleged ties to the chinese military and making it harder for u.s. investors to access or for capital to get to those companies. and that is something you will see continue in the next administration and certainly, that is going to be political popular amongst republicans and democrats. we see some, as semblance of calm being restored over the capital, i'm wondering

what the longer-term damage is likely to be in terms of the threat of the american democratic institution, right? not just what we have seen of course in the last few hours, but the fact that we had the president calling it a rigged election over and over and we had a number of leading politicians and the gop willing to stand up and defend him and willing to potentially thwart the process of certification of the vote as well. do you think there has been a lot of damage done and does it weaken democracy in america? david: when we are in the middle of what is i think a crisis right and washington, d.c., it's hard to really project what it means, but sometimes, you have to do damage before you can go forward, and the question i think that we will have to be asking ourselves in the coming days, weeks, and months, is dude we scare ourselves just a little bit? it's one thing to use very bold language and stir up a lot of people in a rally and it feels good, but in fact, those words can have consequences, real

consequences, which are really frightening to a lot of americans, so the question is, is there a way that there could be something of a silver lining here? it could bring a lot of us up short and say we may have gone just a bit too far. david westin with us as well as fellow and director of domestic policy studies lanhee chen. we appreciate your time of course. let's take a look at how asian markets are waking up to all of this turbulence. what are you seeing? sophie: waking up with some positive sentiment this morning with stocks gaining ground. you have aussie shares higher by more than 1%. kiwi stocks reaching fresh record highs and we are seeing the reflation seen come through in sydney. tech under pressure while commodity players are gaining ground alongside financials, declining lower franz eubanks, supportive alongside him signals of economic recovery down under in u.s. futures gain ground as well while vix futures are moving towards 24 this morning

so flipping the board, after the overnight steepening we signed the treasury's curb, we are seeing futures hold steady, up slightly this morning while we are seeing the 10 year yields and antipodes gaining ground. the 10 year yield for new zealand about 1% for the first time since july. indicative of this response we are seeing across markets, check out the aussie yen extending gains above 80, a level that has not been reached since april 2019. shery. shery: be sure to tune into bloomberg radio to hear more from the big newsmakers and get in-depth analysis from the daybreak team, broadcasting from our studio in hong kong. the cynthia the app, radio plus, or bloombergradio.com. stay with us. ♪

haidi: a quick check of the latest business flash headlines this hour. topping estimates in the fourth quarter. the carrier added 820,000 users in the period, taking it about 2.2 million through 2020 as a whole. the result will be forecast and come in ahead of the 700,000 new customers t-mobile had predicted back in november. they have risen to the board of mgm, urging the company to sell 20% of its china operations to a

local company as a strategic investor. it own 7.5% of mgm china and is targeting a leisure company for that state. a top executive at louis vuitton is set to take over the management of tiffany after the biggest luxury deal ever. lvmh -- after winning shareholder approval. louis vuitton's anthony will lead the jeweler. shery: we are headed to the open in japan and south korea. let's turn to sophie again for what to watch. japan and south korea, we are watching reflation that may arise, a blue wave claiming the senate. infrastructure players like yundai engineering -- h engineering and focus. the conglomerate agreed to invest $1.5 billion in our

fuel-cell maker. boosts in a bid to hydrogen a nation as we are seeing a move towards clean energy in government policy and as companies focus more on that space so again, reflation very much the name of the game this thursday in asia. haidi. out, much more reaction to those events in washington. we will get the view from our guest, the former staff director for the senate foreign relations committee. we will of course also have the market opens coming up in seoul and tokyo, next, as markets in the civilake political chaos. we will have the u.s. capitol and locked down but with some semblance of calm and security being restored after those violent protests of trump's supporters flocking to the capital. and we know that according to washington, d.c. police, that one woman who was shot has since

died. we have lots more to come including the latest reaction in breaking news. this is bloomberg. ♪

shery: welcome to "daybreak: asia." from bloomberg world headquarters in new york, i'm shery ahn. haidi: i'm haidi stroud-watts in sydney. asia's major markets have opened for trade. our top stories this hour. chaos of the heart of american democracy. a woman is killed after protesters storm congress. police a capitol hill is secure. joe biden -- u.s. divisions have set to

defend as the democrats win control of the congress for the first time in six years. u.s. futures higher. asian stocks set to gain despite the capital chaos. wall street leaders are among those expressing shock at the scenes in washington. shery: some semblance of normalcy seems to have returned to the streets of d.c. this after a violent day of protests. we have seen president trump telling his supporters to stop this deal. richard byrd coming out and saying president trump bears responsibility for today by promoting conspiracy theories. this as we expect lawmakers to return to capitol hill to resume their electoral count tonight. in the meantime, markets, not much impact during the regular session in the u.s. with stocks rallying. let's see if this translates to the markets across asia. let's get straight to the action with sophie. riske: we are saying that

on mood continue through into asian stocks. the nikkei 225 adding more than 1%. the yen is steady above 103 after halting a three-day gain. this after u.s. stocks rose on the democrats clinching the u.s. senate. we are waiting to see whether prime minister suga will declare a second state of emergency for the tokyo region. ongot the latest set of data wages for japan following -- falling for an eighth straight month. this is backward looking data. when it comes to what we are watching today, reflation in focus. switching of the ward, in south korea, we will see how the kospi is opening up, gaining more than 1%. up the -- above the 3000 level. we saw that mood falter midweek as foreign investors sold amid a loss valuation concern. has.

been the offset today we are seeing gains for korean stocks. korean won under pressure this morning. we are seeing the sk group gain ground. it inks an deal to buy a u.s. fuel-cell maker that is plug power. 1%are seeing gains of over for kiwi and australian stocks. we are seeing 10 year yields for new zealand joining their australian counterparts, above the 1% level for kiwi 10 year yields. higher aussie yields looking to draw in fresh demand from japanese buyers who are looking at those big yields right there. taking a look at the board next, let's switch it and check on u.s. futures. moves higher. the dollar is under pressure for day.rd straight city strategists warning the georgia runoff elections will increase the risk of a 20% drop for the greenback this year. treasuries, the 10 year yield moved 1%. and a lot of questions about what may happen next. there is a cautioning that a

steeper u.s. yield curve could still take a toll on em currencies. haidi: we do have breaking news. when it comes to the flurry of tweets we have seen, the social media engagement from president trump. there is a video he made calling for his supporters to go home, but at the same time, saying the election was rigged, that the landslide was stolen from them. the president's twitter account will be locked for 12 hours. they removed three of president trump's tweets. we saw that limited engagement with these tweets because they had made that claim the unfounded claim of election fraud that is obviously disputed. and had not allowed it to be retweeted or replied to. we hear twitter has suspended or locked down the handle at a real donald trump for the next 12 hours. we are also hearing from facebook saying they have removed over 600 militarized

social movements, that they have been removing inciting encouragement of the event in the capital -- capitol. we did see facebook as well as youtube removing that video from president trump earlier. let's get the latest from our congressional governor reporter, laura davidson tracking these developments. we have seen a busy couple of hours for the social media giants trying to get on top of some of the fake news as well as content. facebook fears he is inciting more violence. what are you seeing in the ?apitol we are hearing the area has been secured and it will be a long that ahead for lawmakers when they return. laura: like the tech companies, the capitol police are doing a lot of damage control. they said the building is secured but everyone is under lockdown. we will see what happens over the next hour. senators have said they will come back and start resuming their debate around 8:00 p.m.,

one hour from now, east coast time. if they are under lockdown and it is not clear they will be able to do that. both the house and senate have said they will come back in a show of strength and unity, that the riots cannot prevent them from doing their job and governing. the question is how long does this go? do we continue to see the objections that were planned earlier in the day? there is a lot of pressure being put on two senators, josh hawley of missouri as well as senator ted cruz to drop this. senator mitt romney has come forward and said look, we need to drop these objections. we need to give legitimacy to biden and his presidency and not continue to create these divisions in a very awkward situation on the senate floor. shery: twitter saying it will permanently ban president trump's account on future violations. facebook saying they have removed recent video of president trump speaking on protests as well. to your point of what is

tonight, we heard from the new york times that republican representative cathy mcmorris rodgers will be dropping her opposition to biden's win. we heard from richard byrd saying president trump bears responsibility for today. what is this doing to the divisions already in place in the gop? where does the party go from here? laura: that is an excellent question. really unsure right now. this will cause a reckoning within the republican party. if you are mitch mcconnell, today was an absolutely horrific day. he is the leader of the senate party -- republicans in the senate. he effectively lost his job when democrats won the georgia races. he will not be the leader of the senate anymore. he was forcibly removed from his chamber today. this will cause questions for republicans -- they had seen trump as their leader. will they listen to him or stand up to him and say no, we will go a different direction?

haidi: soul-searching required within the party talk to me more about this stunning result for the democrats, very favorable results for the democrats in georgia. what does this mean in terms of policymaking ability in the senate? laura: it means biden will have an opportunity to enact at least some of his agenda. democrats will hold 50 seats in the senate, that his half. they have vice president kamala harris who will be able to cast tie-breaking votes. with a very, very slim majority. they will not be able to do the big sweeping changes that have been talked about. big environment of changes or sweeping tax cuts. they will be able to do some of those things. they will need to work with republicans. there are some moderates who have been signaled as willing to work with democrats after an event like we had today. you will see some coming together, like after 9/11. there is a feeling that to be morehip needs prevalent going forward rather than deeper divisions that

really stoked the violence that we saw today. haidi: our reporter laura davidson there with the latest. we are seeing a little bit of downside when it comes to trading in twitter stock. we heard over the last couple of minutes, twitter saying they have locked down the account, real donald trump, for the next 12 hours pending the removal of three problematic tweets. saying if those tweets are not removed, the lockdown will continue. twitter saying it will potentially permanently ban the trump account for future violations. this coming as facebook confirming it has removed a number, more than 600 posts when it comes to those content posts inciting more violence, as well as removing president trump's own video earlier on where he called for peace and call for protesters to go home, and continued to allege and accuse others of conducting election fraud and having the election stolen from him. facebook updating that

delegitimized the poll results. let's get analysis to what has been an extraordinary few hours. head of equity research for asia. we have been looking at the market reaction. in the u.s., it was fairly sanguine. in asia, pretty positive. what do you make of this? typically it seems to be an understanding that what happens on the street does not impact markets.ens in perhaps it is more positivity now that we have that senate result coming as a result of georgia. obviously, it is a little bit shocking. what we have seen. i guess not surprising given we are not two weeks before the inauguration. i guess anything can happen. in my view, it cannot get worse than it is now. as you pointed out, that is the street. the market is looking past that. certainty on the senate

going forward, obviously gives a bit of new life into some of the biden policies. i think we are obviously going to see a reinvigoration of share prices around those things. particularly green energy, things like this. for us, i think you mentioned weaker, the dollar -- the dollar we think is a major theme this year. along with reopening and recovery. obviously for em equities which is our focus, particularly asia, a weak dollar is good for em equities. good for em equity earnings. also good for everything that is denominated in u.s. dollars. haidi: one of your calls is to continue positivity out of china. we know it has been doing very well. so far, the height of the rally has been concentrated in the large caps.

do we expect the rally to broaden out more in china? kieran: yeah, we do. we like china. we like domestic china. guess, a pausei ischina-u.s. tension, which certainly not an increase in tension, given with the presidency, it will enable the chinese to focus a little bit inward on their own economy and the restructuring they have been trying to do. we definitely think china is going to be the leader in terms of economic growth globally. about 6% in the quarter. huizinga digits for 2021. we think that looks pretty good. despite relatively elevated valuations, we think earnings and domestic china have a good chance of growing into that. we have rotated some of our u.s. equity holdings, which we still

like the u.s., but we rotated a little bit of that into em and china in particular. shery: majority of political analysts are saying that perhaps we will not see a huge swift or a fast shift when it comes to biden policy towards china. we do have these president trump executive orders, whether it is chinese apps or the delisting of major companies. are you more careful where you are putting your money in china, especially given the pressure is not only coming from the u.s. but also domestically, we are seeing these regulatory changes? kieran: of course. on the point around, does everything change with biden? certainly, of course not. some of the measures that trump put in place over the last three years were a long time coming and very useful to a biden administration as well. we would not expect him to reverse some of the pressure.

we would not expect him to increase the pressure around tariffs. these sorts of things. we need to look at what is it, chinese government is trying to arounderms of regulating fintech and microloans, the sorts of areas. definitely we need to be cautious. on the other hand, it is very unlikely that china is aiming to kill the likes of alibaba, for example. are up to -- we are opportunistic in terms of when share prices look attractive, and we are trying to stay away from those areas, let's say, micro finance, which will see quite a bit of pressure, we think, in the next two to three quarters. go, webefore we let you were talking about the u.s. and its impact on the emerging markets. we do have this new stimulus package. we could see more coming with democratic control of the senate. where in emerging markets and asian assets would you see the

biggest impact and opportunities coming from here? mean, finally, physical is helping with monetary policy, in terms of stimulus. we think that is a long time coming. and the markets have been expecting that. to answer your question directly, this is obviously going to help with the -- along with reopening and recovery, it --going to add fuel tailwinds around global cyclicals, which will be the major player around reopening better manufacturing activity and the sorts of things. from this perspective, we are looking at high-quality value stocks, industrials, other cyclicals. if you had to pick a region in was, it would be north asia and keep an eye on japan which is really a play on global cyclical recovery. bp head of equity

research, kieran calder, thank you for joining us. breaking news. vice president pence has returned to the senate. he had remained at the capitol according to an eight of his. we had seen vice president pence being taken to a secure location. we are hearing from an aid he remained at capitol capitol and has returned to the senate peered we have learned -- heard from lawmakers that they will try to resume the process of the electoral count that was disruptive -- disrupted because of the violent protests and the storming of the halls of congress by president trump supporters. vice president pence called for the violence and this -- and destruction of the t and. he has defied the president saying he has no power to intervene when it comes to the election results. was turned to karina mitchell with the first word headlines. karina: we saw twitter took some bold action. china's tech stocks in the spotlight with the u.s. official said to be considering an order

prohibiting americans from them.ing in alibaba and tencent are the latest companies to face action from the trump administration. state departments discuss expanding action against companies deemed to be linked to the chinese military. meanwhile, china says the u.s. has been flip-flopping on policy for years, calling for respect from market principles amid the uncertainty over mainland companies trading in new york. the foreign ministry says the trump administration has been oppressing overseas firms, warning the policy will hurt the china.re than beijing says action against chinese companies will undermine america in global markets. rising virus numbers in japan are expected to trigger a state of emergency in tokyo. local media says prime minister yoshihide suga will impose new measures will last -- that will last a month. local authorities will keep people at home in order businesses to close or limit their operations. bloomberg economics sees the emergency cutting 7/10 of 1% off national gdp.

global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. haidi: coming up, we get more reaction to the event in washington. we will get the views from lester munson, the former staff director of the senate's foreign relations committee. we will speak to eurasia group's kevin allison about the trump administration's confrontation with china's tech sector. what could happen under a biden administration. this is bloomberg. ♪ are you frustrated with your weight and health? it's time for aerotrainer, a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. do the aerotrainer super crunch. the pre-stretch works your abs even harder,

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shery: twitter has locked donald trump's account for 12 hours pending the removal of three policy.hat violate user also threatening to permanently ban trump's account on future violations. facebook and google have removed his video as senior tech

reporter sarah frier in san francisco. what does this mean, especially for the social media companies, given the prep -- that president trump's presence in these social media arenas have been so big, what will the removal of his content mean? it really is a bit of an experiment they are doing right now. they have never gone this far with trump before. in the past, we've heard from employees and people working on policy there, that they are worried that if they did take severe action on trump, that it would be fitting in with the conservative claims of censorship. a userse, trump is also of these private platforms that have rules that need to be followed. he has come close to the line many times and crossed the line many times. now i think that they have seen, there is a democratic

administration coming in, they are a little bit more confident in what they are doing with trump. and also are getting a lot of pressure from their employees to do something. everyone is looking at what is happening with the riots, they are violent, it's scary, it is something that they can do something about. because they can try to prevent this action onof their platforms. haidi: it is interesting because if you were to be cynical, you look at the power that social media and some of the news content or questionable content has been responsible for in the past four years. there has been criticism that this is a little bit of too little, too late, right? sarah: absolutely. they could have done this years ago. duringuld have done this the muslim band. they could have done it -- there are so many different instances where people have called on twitter and facebook to limit

trump and they have not done it. and part because he was in power. power,t he is losing cynically, i think that is why it is a little easier for them to take the plunge. bloomberg's senior tech reporter sarah frier, talking about these actions we have seen from the likes of twitter and facebook, which of course have resisted for some time now. but finally taking that action to lock president trump's hours. for the next 12 we are hearing from other global business leaders coming out in droves to condemn the violence we have seen an washington, d.c. for more, let's bring in our correspondent, stephen engle. what are you seeing -- hearing, what are they saying? stephen: a lot of world leaders who are condemning it coming out and business leaders as well. not a lot coming from the asia-pacific region. a lot of this happened in our overnight period. asia is waking up to the scenes

in washington, d.c. we might get some statements coming forward. we are not hearing from alexa vladimir putin or mr. bolsonaro from brazil, widely seen as being more favorable to trump. these are the comments we are getting so far from other world leaders. boris johnson in a tweet called the scenes of the u.s. congress disgraceful. the u.s. stands for democracy around the world and it is vital that we should -- that there should be a peaceful and orderly transfer of power. some of the more striking comments coming from the german foreman minister. he referred to the 1933 burning of the germany -- german parliament building as nazi-ism taking hold. the enemies of democracy will be happy to see these incredible pictures from washington, d.c., he says. riotous's words turn into violent acts on the step of the rights dog and now in the capital. the disdain for democratic

institutions is devastating. devastating comments from the german foreman minister, as well as yen stoltenberg. shocking steen -- seen since -- shocking scenes. wall street coming out in big business leaders, bank of america brian moynihan calling it appalling. blackrock calling it an assault on our nation, are democracy and the will of the american people. steve schwarzman, a trump ally of blackstone, the instant -- this is appalling and an affront to the democratic values we hold dear. i'm shocked and horrified by this mobs attempt to undermine our constitution. he reiterated the outcome of the election is very clear, and there must be a trees -- a peaceful transition of power. wall street coming out. jamie dimon previously sat on trump's advisory council. i strongly condemn the violence in our nations capital. this is not who we are as a country.

we are better than this. among a long list, i will add solomon, goldman sachs ceo says for years, our democracy has built a reservoir of goodwill around the world that brings important benefits for our citizens. we have squandered that goodwill at an alarming pace in today's attack on the u.s. capitol. . their internal affairs, i cannot imagine them commenting about what is happening in the u.s. that at the same time we have u.s.-china tensions. anything yet? stephen: i would not be surprised that there would be a statement coming from the foreign ministry later today. it is not going to be along the lines i read out. they will not be talking about the assault on democracy. especially what happened in hong kong yesterday with a roundup of more than several dozen pro-democracy supporters here. in hong kong. . the liaison office here in hong kong said the step that hong kong police took yesterday to

put hong kong back on the right path or the right track. i'm not expecting much from beijing. we are yet to hear from the asian allies, like japan, like south korea, here in asia as asia wakes up. shery: our chief north asian correspondent stephen engle there with the international reaction to the events here in states.ed let's get more analysis from lester munson principal of the government relations firm bg our group. great to have you with us. it was really a stunning day of pictures that we saw out of d.c. the chaos. really, when it comes to whether it was the violence today, for the objections to this electoral vote count, it is not a good look for republicans. where does the gop go from here? lookr: it is a terrible for republicans. i totally agree with you. . it was horrifying to watch as

someone who worked there for several years. really not help but be very concerned about what is going on. those places where we saw the rioters inside the capital are as close as we have two sacred ground in our country. that is where our laws are made. that is where we come together as a people and find compromise and enact our democracy. that is where it happens. for this insurrection to have happened in those places is really horrifying at a deep level. i think republicans will be reeling from this for a while. those images are not going to go away. this will be the legacy of president trump and will be part of him going forward for the rest of his life. the party itself is going to have to wrestle with this openly. i think you will see a lot of members, you are already seeing republicans condemn this. that's good. they need to purge people from the party who supported anything this.ly like

i suspect that once president biden takes power and democrats start to roll out their agenda, the focus will change a little bit. it will be easier for republicans to get together and unify on something. right now, there is going to be a reckoning over what happened today. shery: how can joe biden heal the country? what should he do first? he needs toink reach out to republicans. he needs to show he is the president of the entire country. he has been calm, cool, and campaign.during the he only, on rare occasions, rose to the vitriol that president trump was offering during the campaign i. think he needs to keep doing that. i think he needs to rise above. he needs to do that for as long as he can. recognizing his agenda is not necessarily a bipartisan one. there will be issues where the two parties disagree. that's natural, that's ok. as long as president biden, if he stays above the fray and is a

voice of calm and reason and reaches out to those republicans who want to work with him, then he will have some very good reviews in his approval ratings. haidi: some people point out, we talk about these deep divisions in american society playing out from the past few hours, the weeks, in fact, the past four years, but people will have said that america has always been divided. it depends on the issue and time period you were talking about. is there a way to get back to a level of constructive division? where we can actually see progress and reconciliation, as well as a differing of opinions? lester: that is a great question. and it is really going to be up to the elected leaders we have and see how they carry out their agendas, particularly for the next six months. the first six months of any administration are probably the most important ones. this is the time where president done.will get the most

i would urge him to reach out to republicans. don't have an agenda that is exclusively democratic. try to be bipartisan when you can. look to collaborate with the other side. try not to have structures that eliminate the minority concerns. both the senate and house are so closely divided. the senate is literally going to be 50-50 in a couple of weeks. the houses five members away from being in control by republicans. he is going to have to reach out to the other side. if he does that in an active way on issues that matter, that can country.to help the we also need to see that from republicans. republicans will have to show that they can work with the new president, that they are willing to put their partisan concerns aside, that they want to find a calm her way forward. i guess i of the, would say low hanging fruit, one of the issues that we know there is willingness in both camps to continue the status quo as well

as something that plays out well with the public is the idea of continuing to get hard on china. do you expect a pivot when it comes to the strategy with beijing or with foreign policy overall? lester: that is a great question. i know your viewers are very interested in it. i think the pressure on china is only going to grow in washington. it may not be as immediate as what trump -- the trump administration was talking about today. the new penalties on chinese companies. the long-term trend for more and more pressure on china is a bipartisan issue, particularly republicans are concerned about it. increasingly democrats are also. republicans were held back a little bit by president trump's willingness to do trade deals beijing. that is no longer going to stop them from promoting legislation that calls for broader and greater sanctions on china, on chinese companies, on

international companies that do business with beijing. i see that as something that is only going to increase the pressure on beijing. shery: lester munson, thank you for joining us this evening with his insides on everything that is happening in washington. and house speaker nancy pelosi saying the electoral count will resume later despite the storming of the capitol building. let's get the latest from our chief washington correspondent kevin cirilli. what is the schedule looking like right now? lawmakers seem determined to resume the electoral vote count. kevin: they are trusting the process. the institutions of democracy still being the guiding force hours,e next couple of in order for that certification process that was set to begin now about six and a half hours ago. reconvene, we are told by sources on capitol hill, within the next 30 minutes or so, at about 8:00 p.m. local time here in the nation's capital.

a capital, mind you, that is under a lockdown -- a curfew, rather. a curfew. that the mayor mayor bowser, has imposed. now in its 90th minute. the city is really on edge. there is a sense of palpable intensity as the associated press has reported that the capitol campus has been "secured." we are getting new reports that the woman who was shot has unfortunately passed away. it comes as public comments from across the ideological spectrum from democrats to republicans, condemning president trump for his comments this afternoon and into this evening. even going so far as to say that the video he posted to his social media account on twitter did not go far enough in order to discredit and disavow the mob that had rushed inside the capitol and destroyed property,

damaged historical items of significance. haidi: we continue to see him make these allegations, these unfounded allegations of electoral fraud, which resulted in the video being removed from these platforms. where to from here? it is going to be a long night lawmakers. for is it procedural that the certifications will be done despite the disruption we have seen? kevin: there are two points i make. first and foremost, the new york times is reporting congresswoman cathy mcmorris rodgers, a republican member of the minority in the democratic-controlled house of representatives, they are saying she is going to withdraw her opposition she was planning to file this afternoon with therds to objections to certification process for the 2020 election. . it is a market moment because it is the first republican who is suggesting they would like to take a more quick approach in

terms of the certification effort as a result of the calamity that unfolded inside of the capitol. the second point i would make is that based on sources i've been speaking with throughout the day, including members of congress, there is this sense of bipartisanship feeling that has emerged, that the best path forward right now for the institution as a whole is for them to convene. for them to do their job, into show the american people that the institution is still working. that is what i think the public comments that we have been reporting on the bloomberg terminal from speaker pelosi, the senate majority leader mitch mcconnell, saying don't go anywhere, don't go anywhere. we've got a job to do tonight. and that they are planning to get those lawmakers back to work to finish the certification process. haidi: kevin cirilli, our chief washington correspondent after a very long day. you can turn to the bloomberg

for more on the unrest in washington, the political as well as the market reaction to the result of the senate runoff race in georgia. go to tliv to get commentary and analysis from bloomberg excerpt editors. we do have some breaking news when it comes to -- an alert crossing the bloomberg when it comes to australia's trade numbers. coming in at over 5 billion aussie dollars. that is somewhat short of the 6.4 billion that had been expected. when it comes to exports to china, it breaks down to $11.4 billion. a little bit of a miss when it comes to the trade balance. . the import seeing a rise of 10% from the months prior exports earlier, from a year leading to the slightly slimmer than expected trade surplus of over 5 billion aussie dollars. let's look at the markets. we see these optimism as hopes of more stimulus in the u.s. start to play out. sophie: that is driving a

reflation trade, along with prospects for more economic recovery. not only in the u.s. but across globe. we are seeing the regional index in asia rise more than 1% with gains across the board in korea. samsung, the biggest move for the kospi, trying to test the 3000 level once again. resource stocks are leading gains in sydney while tech is a laggard on the asx 200. in japan, the nikkei 225 is set to halt a four-day draw -- drop. we will hear from suga about -- we are hearing from the economy minister of japan saying the emergency proposal for tokyo air that will run through february seventh. they will skip to quote -- they will ask to close no later than 8:00 p.m., as they see the medical system under strain in the tokyo area. let's check in on how bonds are faring. we are seeing pressure across the board.

treasuries holding steady above 100 basis points. upsidean saying they see risk to their year-end target of 1.3% by the end of the year on benchmark treasuries given the results. from the georgia runoff with yields pressured higher, we are seeing asian financial stocks ground. take a look at what is going on with financial players. thank index, more than 3% higher this morning, as we see the rotation into a value continuing. we see infrastructure names gain ground as well on the cyclical. copper futures on the rise. above.ding $50 a barrel i want to point out one underperformer in the asia session. that is softbank. shareholder. softbank shares falling in tokyo, flipping on the board to check in on that. we are seeing that on reports that the u.s. may add alibaba and tencent to a u.s. stock. shery: we will discuss that. we could see a ramp-up of

u.s.-china tensions before joe house.nters the white again proceeding with a plan to delist three chinese telecom firms. u.s. officials debating whether to bar investment in alibaba group and tencent. let's discuss this with the director of eurasia group geo technology group kevin allison. thank -- great to have you with us. it is coming at a time when we see political violence, tensions across washington, d.c. easiestple saying the consensus between republicans and democrats to heal the country could be going hard against china. what will happen to president trump's executive orders, whether it is on chinese apps or all of these major telecom communications, bans, and so on? kevin: there is no question that during the course of the trump administration, the u.s. has taken a more aggressive a group -- approach to confronting china. i would say one of the things that we try to emphasize is that

the reason for that both national and economic security -wise predate the trump administration and they will outlast it. we do think joe biden and his administration will continue a tougher approach to china then you would have seen, for example, under the obama administration in which biden served as -- as vice president. that will continue. we do also see important differences in the style, the substance, and the structure of u.s. policy. particularly when it comes to these things you mentioned, like entity actions against companies, attempts to try to ban apps, and other aggressive actions to push back on china's rise by the national security hawks within the trump administration today. shery: we are seeing more consensus toward the need of industrial policy against china when it comes to this growing tech rivalry. will be continue to see these initiatives like the clean

network initiative targeting huawei and chinese apps as well? kevin: i think industrial policy is going to be an important part of the u.s. strategy on china going forward. sense.ady is in some the 2021 national defense bill, which was just passed by a veto congress, include setting up funding for encouraging domestic semiconductor manufacturing, for example. assuming that congress makes appropriations, you will have tens of billions of dollars in grants or tax incentives coming into support advanced semiconductor fabrication facilities in the u.s. the industrial policy side of it is interesting because so much of what the trump administration did certainly during its first three years was more in terms of going after chinese companies. there has been a sense on both sides of the aisle on congress that that needs to be balanced by measures to invest more

domestically and shoring up u.s. innovative capacity. starting,is already potentially on its way in semiconductors. we think in green technologies that the biden administration will be interested in using industrial policy to try to compete more with china. which, they have a bigger lead on green technologies like batteries, solar, and other things over the u.s. companies. because china has had more proactive policies in those areas. haidi: and if nothing but a whole of government approach, for all of the criticism, they do that very well in china. is that is something that is required from the u.s.? we've seen the trump administration get tough on china. it has also been a very ad hoc, quite often chaotic approach when it comes to executive orders and entity lists and things that are not necessarily predictable. is more predictability in the relationship something that is required going forward?

kevin: that's why i said we expected difference in style structure from biden. that is something we think that different. we think there will be more of an emphasis on process whereas policymaking by the trump administration tended to be more every agency for itself. sometimes agencies making determinations, picking a company without clearing it through what we would call a traditional process. i think we will see less haphazard, less chaotic, and maybe more orderly, more traditional. in that sense, i think you will see smoother policymaking. . we think another big difference will be engagement with allies. even as the u.s. was under trump china,eally hard against it was also not exactly doing a lot to ingratiate itself with u.s. allies. it was targeting itself with tariffs and other things, stretching national security authorities to target european carmakers and threaten them with tariffs. we think that goes away. onre is a lot more interest

the biden administration in engagement across the atlantic and other types of allies. the question is whether the u.s. and europe, or the u.s. and other countries that have traditionally been more democracy, more aligned on these questions can find common ground on things like digital privacy, industrial policy, and regulation of internet platform companies. haidi: eurasia group geo technology director kevin allison there. it is going to be interesting few weeks coming up in the next four years to see what difference there is when it comes to that with china. tokyo and surrounding areas embracing for a state of emergency which could be declared later today. we will get the latest from tokyo. we are continuing to watch any of the latest developments from washington, d.c. this as we have some semblance of security and calm being support -- being restored on the capitol after a few hours of

violent protests. trump supporters storming the capital, resulting in the death of one woman according to washington, d.c. police in these riots, in these protests. we have also heard that twitter and facebook have removed content from the president. there has suspended the president's account for the next 12 hours. we will continue to watch and wait as lawmakers return to the capital to continue that certification process of the electoral votes. lots more to come. this is bloomberg. ♪ - [announcer] imagine having fuller, thicker,

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karina: this is "daybreak: asia." mitchell. tension is high in malaysia over calls for a snap general election. two ministers are pushing back at an early vote saying an election during the pandemic would be a responsible. prime minister has said he intends to hold an election as soon as possible but his coalition partners are not threatening to dissolve at his ahead.e if he goes the u.k. government is warning the latest virus lockdown will last for several months, as reported infections hit their april. level since boris johnson told parliament that pandemic restrictions will be lifted gradually as the situation changes. the lockdown is expect -- is expected to slash the u.s. economic growth and send the country into a double-dip recession.

the central bank of tylan says increasing numbers raises the chance that the economy will expand less than forecasted this year. the bot says the spread of infection has been greater than expected with businesses shut down and tourism all but gone. policy makers say the economy may miss rejections of 3.2% growth this year and a hope for 5% in 2022. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. haidi: japanese prime minister suga will be speaking into -- in japan. is expected to declare a state of emergency today for tokyo and adjacent areas as infections continue to hit record highs. critics are calling the strategy too narrow, as restrictions are lasting for months. let's get our reporter for her view out of tokyo. expectations? there is criticism as to whether this will be effective. isabel: right. the emergency is expected to be

declared later in the day. the reason behind that is obviously that we are seeing record numbers of infections. we saw 6000 across the country yesterday, the worst ever in japan. for the moment it is set to last for a month from january 8 to february 7. it will be a lot less stringent than the last emergency which was declared in april. this time, residents will be urged to avoid going out after 8:00 p.m.. bars and restaurants will be instructed to close at that time. there will be another push for remote working in the government is seeking to cut the number of people who commute by 70%. this emergency light will not have such a devastating effect on the economy. the government in one of the bloomberg specialists sees it cutting gdp by point per seven -- .7% per month. shery: prime minister suga insisted on keeping the economy

open. he supported the travel incentives to boost tourism, the tourism industry. that is being blamed for spreading the infections all over japan. what will all of this due to his political standing? isabel: right. i think certainly in recent weeks there has been a conflict between what the public wants in terms of virus policy and what the suga government is providing. i think suga is capitulating to public opinion which is called for stronger measures. it is not only that the public putting it forward. advisor sincent the start of the pandemic said with these weekend measures, a month will not be long enough to bring it under control. in this emergency could have to be extended until march or april. which is obviously not particularly desirable. from kyotoert

university said that more drastic steps would be needed to cut the cases significantly. the thing is that the government is anxious to avoid the economic pain we saw last year when the emergency took the worst economic downturn on record. isabel reynolds there in tokyo. one of china's leading coronavirus experts has defended the country's delay in raising alarm, and admitted shortcomings in the way beijing has cooperated with the world health organization. a senior official at the national health commission of china oversaw beijing's virus response and he spoke exclusively to bloomberg and began by questioning whether the virus may have originated outside of china. >> i think this suggestion is normal and reasonable.

first, it will not hamper our effort in tracing the virus origins. second, it provides a new idea and the path for scientists to trace the virus. but eventually, scientists will answer the question of where the virus came from. >> the market was in focus at the beginning of this outbreak as potentially the source, for the outbreak in wuhan. this was the market where they sold wild animals. what is your view of the role that markets played in the outbreak we saw in wuhan? >> we are not able to conclude that the virus originated in the seafood market. we can only tell that the first reported case is likely related to it. assuming that the patient was exposed to the virus at the market, we need to have further

research to figure out where that virus came from. whether it is from animal or from cold goods, or from a human. i need to point out that the seafood market is proudly not the beginning of the chain. >> looking back, are there things that could have been done better in terms of the cooperation between china, chinese experts, and the who, more effective cooperation? we indeed have a few shortcomings. very few of our public health experts and clinical physicians can introduce our practice and communicate the information that can be understood by their global peers. few of them are familiar with international guidelines.

we do need to strengthen these types of capabilities of our talents. >> you said yourself you went on the ground on december 31 and you are acting as though this was a transmissible disease. the world health organization put out a statement that said there is no evidence of human transmission, and they said that is based on chinese data. what happened? what we provided, the world health organization in early january is that the evidence shows that the possibility of human to human transmission cannot be ruled out. that is to say, we did not find clear evidence of human to human transmission. that was the expression. but we did not say "it is not transmissible through humans." among the 700 in close contact in early january, many was

exposure, none fell sick in the 14 day quarantine. neither did the 400 medical staff in contact with covid patients. so there was not sufficient evidence of the time to determine human to human transmission. shery: he spoke exclusively to tom mackenzie. we are watching developments and washington, d.c. as we hear the senate majority leader mitch mcconnell will deliver remarks on the senate floor at the top of the hour. house speaker nancy pelosi also telling lawmakers the electoral tonight.l resume this as we have more republicans urging those objections to the presidential certification be withdrawn. some semblance of normalcy returning to washington, d.c., which is under curfew until the morning after all of the violence today. we will be watching the developments in d.c. as well as the market open in china.

this is bloomberg. ♪

tom: it is 9:00 a.m. in blue -- in beijing. i'm tom mackenzie. ingles.avid we are counting down to the opening of trade in hong kong. are top stories today. chaos of the hearts of american democracy. a woman is killed after protesters storm