♪ good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. kathleen: the president faces a second impeachment hearing. about will come wednesday unless mike pence uses authority to remove trump first. u.s.-china relations face a reset and washington with joe

biden's inauguration next week. we discussed the process with a former u.s. ambassador. and the world health organization heads to china to investigate the origins of the coronavirus. the inquiry will focus on the original epicenter, wuhan. haidi: let's take a look at our sydney markets entering the fray. sophie kamaruddin is in hong kong with the market open. stocks after australian lost ground monday we are seeing the asx 200 open little changed. aussie bonds under pressure. the 10 year yield nearing 114 basis points, nehring the premium for the u.s. treasury. losses.ie holding at cba sang fair value for the currency is 74, that is 85 noting the range have lifted further if the us tri-u.s. overnight index swap rate had not recently turned negative. the differentials on that rate.

let's look at the pre-open for the japanese market. checking and not nikkei futures in chicago, we are seeing upside moves. waiting for tokyo markets to come back online from the long weekend. we have earnings on tap including from steven and i let her today. and they end to give an eye on that, holding about 104, after we saw and overnight drop in the fate of the former greenback which jumped to their high -- a three week high. changed,res little after we saw the s&p 500 fall from a record high on monday. lofty valuations raising concerns among investors. goldman saying u.s. equities are aill the best game in town, lot of conviction when it comes to the u.s. recovery. kathleen: it sounds like a lot of bullishness out there. our top stories, the stoxx

market -- the stock market both are watching. ause democrats introduced resolution to impeach president of a second time, seeking to remove him from the presidency and stop him from ever holding office again. the move sets of a vote this week unless vp mike pence invokes the 25th amendment. let's cross to washington. emily wilkins. what specifically is congress looking to impeach the president for? i assume there are legalities, definitions of words that come into this. >> there are two main things we can break down this impeachment about. never one going back to wednesday, what is called the insurrection at the u.s. capitol , when an angry mob broke in, targeted lawmakers and vandalized the capital. it blames trumps words were fueling this mob we saw the capital. i know this feels like forever ago but it also sides trumps

call to georgia's secretary of state, urging them to find enough votes to overturn bidens wind and overturn a democratic election in the state. these concerns may overshadow present by its first 100 days, what can they do to avoid that from happening? >> a couple of things. number one, house speaker nancy pelosi cannot yet send impeachment to the senate. the last time this happened speaker pelosi waited before sending the impeachment approved and passed by the house to the senate before the trial would begin and they could do something like that. we have also heard from democratic majority leader chuck schumer in the senate that they could call the senate back early. right now the senate is supposed to be on recess until around the time joe biden is supposed to be sworn in and they could call them back and get the process started to expedite things before biden formally takes

office. kathleen: what about the fbi warning on many things including political contributions, emily? there are number of companies threatening to not donate or pull campaign contributions from republican lawmakers who opposed the certification of the electoral college. that was 139 house lawmakers, eight senators, all republicans. you can see, first he saw a lot of republicans distance themselves from their colleagues who voted to oppose the electoral college result. today you are seeing more and more companies begin to say, we will also stand against this move. government congressional reporter, emily wilkins. part of the incoming biden presidency, the pandemic and vaccine rollout top priority in the first 100 days. we are getting an update on the number of vaccinations rolled out across the u.s..

daily covid vaccinations has written -- risen by a record 1.2 5 million. we have seen a slow and often chaotic progress to the u.s. program as virus cases continue to spike. but we are seeing a u.s. daily covid vaccinations rising by a record 1.25 billion. raisingnd beyond tech their production target to 2 billion shots from a previously 1.3 billion. so it does seem we are getting progress, when it comes to the rollout and billability of the vaccine. let's get to karina mitchell with first word headlines. karina: we will stay on the hot vaccine and virus. the world health organization is preparing for its long-delayed fact-finding trip to china to recognize the dust investigate the origins of the covid-19 -- to investigate the origins of the covid-19 virus. a separate who team is in china

working with sinovac and sinopharm on potential vaccine approval internationally. plane inf the boeing education were recovered from the weekend, all people i don't board were thought to have died. originally launched many years ago and was far older than the 737 max 8 is now returning to service after a worldwide grounding. the flight recorders recovered and data retrieved. the chairman of ubs is reiterating support for the ceo following an investigation into into its potential role in a mandal lawn -- money laundering scandal at former employer img. however axel declined to say whether hammers would stay in the job. speaking at the greater china conference, he said at the time of the ceo hiring, i ng had settled with dutch prosecutors. >> we are convinced that for us nothing has changed at this point, no new news, we are

monitoring the situation and will update as immense cabin. i am confident he has -- as events happen. i am confident he has the ability to do the job. global news 24 hours a day on air and at bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. mitchell.a this is bloomberg. ahead, bitcoin's plunge reviving concerns the crypto bubble is about to burst again. first, brandywine portfolio manager joins us with his outlook for a bond yields, emerging outlooks and the biggest risks ahead in 2021. this is bloomberg. ♪

kathleen: a stronger dollar and elevating us treasury bond yield

lower for a third day. -- will affect emerging markets. joining us as guess from anyone. -- joiningbrandywine us is our guest from brandywine. in terms of the dollar starting to turn around you to give bond yields keep rising it is going to drive the dollar higher? >> no, i do not think so. first we have to figure out what is going to drive bond yields higher. they are moving higher because we are seeing an uptick in growth, that is good. i do not think the dollar will appreciate. let's say we are going to get auctions this week which will be , so if yieldsand spike on buyers, that is not going to go for risk assets. that would be an environment

where the dollar in its safe haven rokita better. but these are short-term -- in a safe haven role could do better. these are short-term developments. we expected dollar to embark a multiyear downtrend, last year was the starting point. kathleen: put the dollar to one side, how about bond yields? your urging us to look for return on capital, more ambitious than return of capital. the president of the atlanta fed said again it is vaccines and stimulus fuel a stronger recovery. he could get on board with starting to pull back on bond purchasing this year. is that the kind of thing that could put a roadblock in there for stocks? >> that is a great question, kathleen. we have to look at all the fed speakers. , inic falls in the centrist the dow-hawk spectrum. dove-hawk spectrum. saying i'm not aboard to reduce asset purchases until 2022, the

fed does not know what they're going to do yet, meeting a bunch of data. so we are going to constantly monitor the fed speaking, the biggest take away that the fed is willing to accept some inflation is unique in this environment. i do not think the fed is going to remove the punch bowl anytime soon. haidi: what about the plane plainointment of--prop disappointment of profitability. it is a liquidity driven rally. but how much outperformance would you want to see in profits over the coming quarters to justify that? atin my world looking profits at inflation and pricing goods it looks like producers, we are finally putting up part of the cycle were companies have pricing powers. so that should be good. in the bigger picture, though, you are right, if yields move

higher, and i think that well, i think it will be an orderly slow transition. that means equities are going to have a little tougher go. profits isting of going to happen at a higher rate . that might not be great for massive prices. bulled up on -- risk assets, seeing what we want to last year i do not see anything that is going to derail the separate bias we have for discounts. haidi: the net long-term it comes to austrian on commodities is the highest in a decade, bullishness comes to commodities and metals and the industrial complex. is there a risk of disappointment? i know some bigger strongest calls are emfx exposed for the commodities and play. >> yeah, you have to differentiate. you are right, we have this word

speculative froth. and we can go through a correction at any point. if the dollar starts to strengthen that might be the catalyst. we have a longer-term approach. we look at the demand for commodities from the global economy. look what is going on in china. we look for the u.s. to start firing i more cylinders when we get the vaccine in peoples arms. i think there's going to be, again, that is a good environment for the developing world, great environment. so i think there's going to be enough to mad on the commodity side. but again, like any market, it is not quite be linear. there is going to be setbacks. i look at him currency, commodity producers, latin american in particular, they are still undervalued. they have liked for years now. so i think they will play catch-up. great to have you with us, jack, brandywine global fixed income portfolio manager. most sincel the

march down 26%. it's meteoric 900% rise the past two years had one analyst asking if we are seeing that mother of all bubbles. su keenan is following the action and the sharp drop extending to stocks. the bitcoin boom given the gains we have seen in the 4-6 weeks, 26 percent it seems like a daily move to me. su: a big deli move. big-- daily move. bitcoin fell into a bear market, down 24% less when he for hours, a wild ride over the weekend. said if you would compare this to other commodities a two day move that wiped out hundred 85 billion dollars valuation that which happens too bitcoin since friday, you would consider that maybe it is a huge bubble. you would also say maybe it is crazy expensive. we talked about stocks exposed

to bitcoin also getting slammed. check out declines. 8, digital, marathon pat, also-- ebang, all suffer big losses. up a lot in the last week alone, live by the bitcoin boom and die by the bitcoin decline. many investors wanting to gains, 38% year-to-date, in the past 10 days. warily.at this, playsen: these crypto make the emerging-market volatility look like nothing now. where does it go from here? a big selloff, start buying again, or what? su: remember this ceo from guggenheim who said to be bitcoin can go to $400,000. 2018 out the charts, since

the nine had a percent advance has reminded people of bubbles in the past. he tweeted out maybe it is time to take money off the table. it really has been the biggest boom we have seen in 50 years even across other asset classes, some calling it a rise that has blown away other booms. many are now questioning whether this is sustainable. even those analysts saying bitcoin will rise from here on morning we could see a couple of more severe corrections along the way. kathleen: su keenan joining us in new york, thank you. big breaking news everybody has been wondering about. president trump and vice president mike pence spoke today in person. it is the first time the two have spoken since the president's words were a force that helped big night a riot at that u.s. capitol while mike pence was inside the capitol building presiding over the formal affirmation of joe

biden'election, his victory. pence was reported to be furious after hundreds of the president supporters breach the capital wednesday. they disrupted the count of electoral college votes, and cost lawmakers including the vice president, to flee the house and senate. this is a bloomberg scoop. people familiar with the matter will be covering this closely today, more as headlines coming on this story. coming up, just over one week left in office and the trump administration's accelerating tensions with china. we look at where the u.s.-china relationship is headed next, and we will keep an eye on the breaking news toy for you. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward,

with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.

\ the final days of the trump administration are rife with tensions between china and the

united states. taiwan, hong kong, and sanctions and executive orders against chinese companies. it is proving confounding for companies and investors stuck in the middle. chief north our asian correspondent is looking at this increasingly contentious relationship developing. where to from here? >> that is a good question. i am sure there are many in the various camps, the incoming biden administration or the leadership compound in beijing. they would like to see a reset of relations between china and the united states, which have grown cantankerous the last four years, under the dollar trump administration. in the waning days of the trump administration we are seeing increased moves by them including by the state department kinda pompeo, to cement the legacy of trump as

being tough on china. pompeo yesterday making the move on taiwan removing restrictions for interactions. official interactions between u.s. and taiwanese counterparts. rebukes drawn a sharp from beijing. yesterday the foreign ministry spokesperson firing back saying he firmly opposes and strongly condemns that move. there were much harsher comments coming from state media, including from the editor-in-chief of the global times, saying it was the beginning of the end of the taiwanese government. and alluded to a possible military action, quite a serious move. statementshas been including from the national security advisor in washington as well as a joint statement between the united states, u.k., canada, and australia, condemning the arrest of 50 plus pro-democracy advocates here in hong kong. that also not surprisingly drew a strong rebuke from china. it responded by saying those countries have quote confounded

right and wrong. yesterday, the big story was china introducing new roles fielding its people and companies, anyone doing business in china, from foreign sanctions -- shielding its people and companies, anyone doing business in china, from foreign sanctions. this may be a last-ditch effort by the trump to cement the tough guy intra--- image of donald trump on china. front china -- from china it may be a warning shot from china not to continue down this path, we will have to see. confounded,e left as we have seen with china telecommunications companies, the flip-flop club on the new york stock exchange last week and the delisting starting yesterday. kathleen: a lot to keep your eye on and we do not know what joe biden is going to do. that will be a big story for the first part of 21 when it comes to china. when we look at the markets what

we are hearing from big , just this week. far as a biden administration's view on china, he has been tough on china as well. he also, as a senator he signs that 1979 s-taiwan relations act , which put into place these protocols, which the trumpet administration is now or partly in direct contact unwinding. it will be interesting to see the china policy from the biden administration in the early days of the administration. on the telco companies, we have seen a number of banks and money managers talk about disinvesting in these telco companies to comply with the deadline, overnight january 11. it is january 12 here in the asia-pacific now. we have seen blackrock mother world largest money manager

selling -- blackrock about the world's largest money manager selling stakes in the three telco providers. we are seeing nyse d list them. msci has removed them from indices friday. s&p, dow jones industry and the quincy russell taking similar action. but when they get delisted in the united states, money has flown into hong kong. we saw a record number of inflows from mainland traders into hong kong yesterday. and china mobile shares absolutely surging. kathleen: thank you to our chief north asia correspondent, stephen engle. now more insight into tensions on washington and asia later this hour with a former ambassador who joins us from the ubs greater china conference. erickson has won a key decision over samsung in the global patent fight with samsung told cannot use the chinese court ruling to block the u.s. bent from determining royalty rates. erickson.

filed against its rival when they were fused to negotiate in good faith on erickson pat -- patents. samsung hit back asking judges in wuhan to set a global rate for the erickson design. california-based electronic carmaker, lucid, is said to be in talks. merger linked to a former citigroup banker michael klein worth up to $15 billion with saudi arabia backed [indiscernible] as advisors. considering replacing planning for the gold and copper mine, rio tinto has been told mongolia is unhappy with its plans to bring the project to completion near turquoise hills, $7 billion development. coming up, the world health organization says the study of coronavirus will begin in china, as they travel this week, with a focus on wuhan, the one-time

epicenter in china. details ahead. this is bloomberg. ♪

romaine: thisis -- karina: this is "bloomberg daybreak: asia." impeachmentve begun proceedings and could have a vote on wednesday. trump is being accused of inciting insurrection. trackp blocked a fast resolution urging trump to invoke the 25th amendment. suinging site parler is amazon after being removed from its service in the aftermath of the capitol hill riots.

amazon falls apple and google dropping parler over concerns over incitement. twitter, facebook and google [indiscernible] reviewing bookings in washington prior to joe biden's inauguration. airbnb says it will cancel reservations in the d.c. era of renters are says it with hate groups and will take rigell action against guests at they shelter others who plan violence. the reserve bank of india is warning that surging bad debt and sewing financial markets are a rising threat to financial stability. rbi says the nonperforming asset above year to rise ago. if that holds through, march, 22, it will be the worst since 1999.

global news 24 hours a day on air and at bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. now we go to sophie kamaruddin in hong kong with a look at how the trading day is unfolding in asia. are looking atwe a mixed start for asia. kiwi shares extending losses. bonds under pressure and australia and new zealand. aussie shares gaining grounds led by banks and resource companies today. check out super retail group getting 7% this morning after the stock was raised to buy at vestingreasing to tourism and better-than-expected jobs data as well as expectations for higher home prices and savings during the pandemic are seeing boosting consumption helping boost super retail. on the others of the spectrum

poly losing ground after a sales update from the biotech player. we are watching the aussie dollar hopping around 77, warning we could see a correction if we see it move below 7694 the aussie dollar -- 76 90. i want to pull this up on the terminal for a check where we are with korean stocks which have enjoyed the best archery year since 1998. but we are seeing signs meant to maybe lagging after a drop for the kospi monday, as institutional investors sold off. plus the 14 day rsi for the aggregate index is nearing 13 year highs. there could be consolidation plus valuations are looking pricey, with 15 times forward earning on that metric. even so, analysts are getting further upside for korean stocks. at citigroup, they are penciling in 3500 for the kospi on strong earnings optimism, as well as

increasing digitalization. haidi: of course the role of the vaccine program globally remains a key risk for market participants, some encouraging news. the number of covered vaccines the u.s. rucker -- rose by a record 1.25 million as the u.s. plays catch up with the shot rollout. we know the data bloomberg collapsed, is not reported on the weekend so there is a catch-up effect here. does it suggest we are starting to see momentum in the rola? >> many states across the u.s. have changed the way they are making the vaccine available. they are opening it to more people, not just a select hospital workers and high-risk nursing home patients, but to everyone 865 and older, everyone aged 70 and older. you are exactly right, we are starting to see that materialize in terms of real vaccinations

happening. more than one million reported overnight with weekend numbers rolled into that. now we are at over 9 million in the u.s. out of 25 million this trip it. -- 25 million distributed. we are not what we want to be but we are moving in the right direction. team from the world health organization travels to china thursday to investigate the origins of the coronavirus. there have been so many deaths around the world do not have a full-fledged global investigation, what is happening there? >> almost 2 million deaths from coronavirus. it has been over one year since the virus emerged. scientifically it is important to know where it came from and how to stop it in the future. if you do not know what caused it, there could be a reservoir out there that is waiting to come back. and it is very critically important to scientists, for

science and for human health to know that. china has been very difficult from the beginning, not allowing officials from the world health organization. and we know from cdc, the trumpet administration when head-to-head with china over this trying to get access. there are people now flying to china to arrive to check out that report, to figure out what happened in wuhan, but we do not know whether they will be allowed in and to an extent they're going to be able to get on the ground to figure it out. it is still a point of contention. it will be interesting scientifically and for public health to see where we end up here. >> health care reporter michelle cortez with the latest on the virus. next, fresh to melt in u.s.-china relations in the final days of the trump administration.

and general foreign-policy directors will discuss whether former vassar -- ambassador with us. this is bloomberg. ♪

>> decoupling benefits both the asia, there will be a large number of chinese companies seeking domestic ipos as well as ipos in hong kong. >> going to be a very strong

recovery led by consumption and exports. call is also that given such a background, we think policies are going to normalize in china. >> the u.s. has been the center of the international financial system. upset ifd feel very decoupling continues. >> policy probably will be plus, would not be as good. so interest rates will stay relatively high. that is good for banks and margins. of the guests at the ubs global china conference on their outlook on china's markets on the risk of decoupling. ubsmackenzie is out the greater conference in shanghai. he has a guest was put a key role in the u.s.-china relationship. are absolutely and we fortunate to be joined by the

former u.s. ambassador to china. also formally the longest-serving governor of iowa. let's bring in the former ambassador, thank you for joining us. there is a lot to unpack in terms of actions we have seen between the u.s. and china and the last few weeks. i want to start with the question of taiwan. and whether you think the secretary the second -- the changes the secretary of state made in terms of mood removing restrictions on officials and the state department when it comes to taiwan, whether that was an appropriate sponsor, an appropriate change? >> well, as you know, the united states feels taiwan needs to be protected. and we have supplied them with material. but we have a diplomatic relationship with the people's republic of china, and a relationship with taiwan is an informal relationship, not a formal one.

ok, that is a crucial point because there will be concerns among some in china, many in china argued lay, that this is a step toward full normalization of ties between washington and taipei. you do not think that is the end goal? >> no, i do not think so. china,nce nixon came to and help open up the chinese market, we made a commitment. i think it happened during the carter administration, to offer full diplomatic recognition to the people's republic of china, and are relationship with taiwan continues to be a strong one of friendship and support and trade. but it in -- it is an informal relationship. tom: are you concerned, ambassador, about the risk of some kind of military misstep between the u.s. and china, whether over the south china sea

are over taiwan, given the number of flights by the pla into taiwanese airspace, threats of retaliation by china. how dangerous is this moment and are there mechanisms in this place to ensure there is not a misstep or miscommunication? pastor as you know the have been instances of missteps. we need to do -- you know that in the past there have been missteps. we need to do all we can to avoid them. we are concerned china has become more aggressive with regard to the airspace and traveling around taiwan. veryhe united states feels important that we have freedom of navigation in the south china be and that the relationship one of open and frankness and discussion, so we avoid any unfortunate or inappropriate instance -- incidents. we are here at the abs

rater china conference and have been talking a lot about the question of decoupling in the capital markets, the action we have seen being taken to delist certain chinese companies, the executive order banning investments in certain chinese companies that the u.s. says have links to the chinese military. how far do you think this goes, ultimately, ambassador? >> i think united states has become aware at our universities and also with business, that the spying military has been on the united states and stealing secret information from us, and has made a strong commitment to stop that. and make sure we have fairness and reciprocity in the relationship. and this is something that is probably long overdue. i expect it is going to be focused, however, on the

military and inappropriate action. china can avoid further decoupling if they stop these inappropriate actions. tom: given your experience here in china before you left, what would your advice be to the incoming biden administration, around where their priorities should be? >> i think they need to take a strong stand and insist on fairness and reciprocity in the relationship. in the past, we have supported the growth of china, and invested in china, in hopes that they would become, that they would reform and become more open and democratic. unfortunately, in recent years, they have gone the opposite direction. lawgs like the security impacting hong kong. the unfair treatment of the

uighurs in terms of human rights. and the threats against taiwan. all things that have caused the relationship to become more difficult. i hope the chinese will realize the new administration is going to continue these policies because there is a broad bipartisan consensus in the united states supporting them. affecting,tion penalizing the people involved in the mistreatment of the uighurs and those people involved in the implementation of security law in hong kong, were virtually unanimous, and both the house and senate, democrats and republicans in congress. so i do not see a likelihood of a change in the policy with the change of administration.

ambassador, i want to shift focus slightly to the question of the future of your republican party. what does your republican party look like in the months and years ahead? happened now,has remember, i am in iowa, and republicans in iowa had a very successful election. , a lotre the state twice of counties that had been blue-collar democratic counties went republican, so the republican party had become more the party of the working people and has a broad support inough the state and gains the industrialized counties along the mississippi river in eastern iowa and has a strong presence in rural iowa, plus this year republicans.

. gained seats in the suburbs. so the republican party in iowa is strong. the democrats have the debacle of the iowa caucuses. tom: ok. ok ambassador, ambassador. hm. ok, ambassador? i take all those points. we are at a moment where we have had a president, republican president, inciting a riot in the capitol. there is soul-searching going on in parts of the republican party. there is a president who has lied his way to this point. what happens to the republican given those tensions in those divisions? >> well i think we condemn violence, and what happened, can united states capitol.

but we also condemned the violence that occurred in cities across america this summer as well. have taken ans strong position that regardless of your political persuasion there is no excuse for damaging the united states capitol, any state capitols, for that matter federal buildings, or any other. police down buildings or headquarters, things like that is totally unacceptable and we have taken a consistent position. i thinkstate, republicans are in a strong position. i cannot speak for the rest of the country. i can only speak for iowa. keepect we will fight to the iowa caucuses first in the nation, and to make sure

everyone is treated with respect and dignity, and we have fairness toward all. let's absolutely hope there is more respect and dignity. do you think the president should be impeached, mr. ambassador? >> no, i think what they tried to do a year ago was wrong. the president is one week from and iing his term, believe it will be a big mistake, the new administration is to focus on fighting the covid virus and getting the economy restored. and getting their people confirmed to leadership positions that takes a long time. i know in my conversation -- confirmation it took from january until may until i was confirmed as abbasid or.

two -- confirmed as ambassador. to my knowledge president biden has not yet named a new ambassador to china, and the confirmation process takes a long time. they do not need the distraction of a trial on impeachment going on simultaneously. what you think is the future for donald trump? >> i don't know. i know he has been a very successful businessman and his america first policies i think made a real difference. phase one ofstate, the trade agreement made a big difference, the price of corn has gone from three dollars to five dollars. the price of soybeans and septembers has gone from nine dollars to $15. we have profitability restored, action on protecting intellectual property rights, opening the chinese market for

insurance and financial services. we need to make sure those gains that lighthizer and mnuchin were able to get in the negotiations ha are enforced and strengthened by the new administration. tom: ambassador, thank you for your time, have a lovely evening there in iowa. that is the former u.s. china, and the longest-serving governor of iowa. haidi: tom mackenzie at that ubs greater china conference in beijing. >> coming up the ubs chief and top investment banker in the asia-pacific join us to discuss the outlook for markets and investment banking in china. kathleen: we will also ask a ceo for his view on china's health care sector, and another guest

on the prospects for drone taxis. tune into bloomberg radio to hear more from newsmakers and get analysis from that daybreak team broadcasting live from our studio in hong kong. plus, via the app, radio or bloombergradio.com. plenty more ahead, stay with us. ♪

haidi: we are getting the japan

current account balance numbers. reporting a current account surplus for november of ¥1.87 trillion, bigger than estimates of a surplus of ¥1.5 trillion. the adjusted november current account number coming in just shy of ¥2.4 trillion. current account surplus for november also coming in better than expectations. japan exports an incoming funding, steady recovery. given that we have had the pandemic affect imports and inbound travelers. let's get you a quick check of business flash headlines. credit suisse considering cuts of 10% to its bonus pool after cuts it profits. finalizing 2020 discretionary payments and will tell staff in the coming weeks. reductions could go as high as

15% and would be a change from two previous years when the bonus pool was almost untouched. drugmaker eli lilly search as an experimental alzheimer's shot showed promise in mid-stage trials, that must be confirmed by larger studies. have a second efficacy trial underway and plans to meet drug regulars to discuss next steps. carlsberg fell in copenhagen after news reports said they unlawful practices in india including improper payments to governor and officials. carlsberg says it cannot comment on the reuters report but remains committed to complying with local regulations, as well as its own code of conduct. now to sophie kamaruddin in hong kong. sophie: keeping an eye on sofbank. so $38 million

uber shares and lemonades valuation. also vision find leading a funding round in a chinese start at the most popular work out said to be guided to live dollars. plus weighing an ipo this year. topics to be announced this friday. nikko reports saying japan post insurance will see the most passive buying impact among stocks, was a market cap of ¥1 trillion or larger. samson and sti. a local media report the company has been supplying energy storage system batteries to tesla since the fourth quarter, at substantial volumes. batteries tolied tesla 2015 to 2017. asia,en: next on daybreak christine payne, ubs head of greater china consumer sector will share her insights.

and from capital markets in sydney. the market opens in tokyo and seoul our next. this is bloomberg. ♪

kathleen: welcome to daybreak: asia from bloomberg world headquarters in new york. haidi: ages major markets have just opened for trade. our top stories this hour. asia looks set for a star as the wall street's first decline in five sessions. korean stocks have at their -- have been at their strongest annual start in two decades. president trump faces a second

impeachment hearing. house democrats say a vote may come on wednesday and last mike pence uses his authority. over hisman of ubs potential role in money laundering scandal. we will hear exclusively this hour. kathleen: let's get straight to the market action as it opens across asia with sophie in hong kong. japanese markets are back online after the long weekend. we are seeing weakness. softbank group, we are seeing moves for the stock right now. softbank off by seven tens of a percent with a few lines around the company including that it sold down its holdings in uber. course virus developments very much in focus in japan. the country says it has found a

new covid variant. that could be weighing on sentiments. let's check out what is going on in the open in south korea. declines are continuing this morning, off by half a percent of the benchmark in seoul. at 10.98n yuan trading against the greenback. ok's policy decision out. the economy may be seeing a slowdown in its recovery. let's check out the antipodes. we are seeing a move slightly higher. a move to tens of a percent. goldman on them commodity outlook saying they see a clear decline. the aussie 10 year yield eyeing the 114 level. this after the move we saw in treasuries. aussie and kiwi dollars gaining a little bit of ground.

the greenback rising to a three week high. switch out the board. robert kaplan reiterates the possibility of -- on expectations of the u.s. economy growing 5%. we do have u.s. futures nudging slightly higher after we saw the s&p retreat from a record on monday. keeping an eye on what is going on in the oil patch. crude snapping a five day rise at holding above 50 two. goldman seeing a fast tightening oil market. forecasting a stronger medium-term outlook for commodities. morninghore yuan this slightly to the upside. stanley no longer bullish on emfx after shifting its

bearish dollar view toward a more neutral stance after we saw u.s. re-yields hitting a bottom. haidi: let's discuss this all and more when it comes to investment strategy with eleanor. great to have you with us and a happy new year. scramblingrategists to revise their bond outlooks as well as their dollar outlooks. it seems real yields and greenbacks have found a bottom. how does that impact what you see when it comes to the equities rally? costs forportunity risks are rising somewhat, they are still pretty low in absolute terms. >> i think you are exactly right. when it comes to the u.s. dollar, we do see some immediate but modest upside in the dollar index then we have seen in recent weeks. positioning has become

incredibly crowded and overstretched. with that extension in the dollar comes the reversal in every hyper correlated risk as get we have -- risk asset we have seen. particularly those with parabolic runs. looking at bitcoin there. i think that is very much the near term story. we continue to expect a weaker dollar into 2021 certainly with the fed remaining devilish and with growth continuing to pick up in other parts of the world coupled with the fiscal regime and the prospects of additional u.s. stimulus and the u.s. putting downward pressure on the dollar. with the picture we do have an the dollar trending lower throughout the year ahead, treasury yields rising, we're looking at emerging markets, asia commodities and higher inflation as the place to be. look tof high yields

threaten the rally we have seen in make a cap tech, does that mean we are going to see a broadening of the market rally? we have already seen the continuation of the cyclical and value play. certainly. i think it is a case of we are not going to see the digital economy outperform on the reopening. we have had several years of disruption condensed into this nine month period so far. now we are beginning to look past the lug down, past the covid boost that companies have had that were maybe built for lockdown. we are very much closer to the other side. when we look at those long earnings direction profiles that come with a high forecast future cash flows, particularly across the sector, they rely on those

discount rates to justify their rich valuations. we do see that fundamentally shifting in the year ahead as yields begin to pick up. . we think for that reason we will see a shift in market leadership towards cyclical, toward more cyclical sectors and geographies. kathleen: how high do you think bond yields in the u.s. could rise? we have heard from another fed official, robert kaplan along with the president of the atlanta fed indicating if the vaccine and the stimulus work in the economy keeps getting stronger, they will be ready to start pulling back on the bond purchases. that was a tough tantrum in 2013. what happen again or are markets expecting it now? -- what it happen again or markets expecting it now? when it comes to how far bond yields would rise, we have to look at the inflation story. we'll have to look at what we have seen so far in container france.

and of course the recent run in commodity prices. coupled with what we are going to see this year in aggressive demand bounceback accompanying the vaccine rollout and the impacts of covid supply bottlenecks filtering through. that headline inflation will not be hard to achieve, especially against low base effects. if you look at the current pace of the caused inflation signals, it is not hard to see heading close to 3% in the next 12 months. that does put a huge amount of pressure on u.s. bond yields. in addition, we have the other dynamic, which is that a vaccine and return to growth does little to rectify the case shaped dynamic. there is going to be further

pressure on fiscal stimulus. on the demand side, there is another driver of higher inflation with the shift toward fiscal primacy. we see the upward pressure on bond yield. when it comes to the tapering story, the fed are building that narrative, but i think they first need to go to the neutral. i think it is going to be hard for them to taper. kathleen: broadly when you look at the australian landscape, new zealand and japan, if the dollar continues to weaken, if u.s. bond yields continue to rise, if there is this thought that the fed may start tapering, what is it going to mean for their markets? that is a problem for australia with the rba not wanting yields to get too high. >> of course. i mean it is a problem when we look at the aussie dollar. [indiscernible]

this aussie dollar that is doing little to drag its complement for domestic policy setting. it is something i think would be a problem if we were to see the fed shifting toward that tapering stance. i think the problem is going to be when it comes to the fed, they have fundamentally shifted philosophy surrounding inflation and the policy response would be average inflation targeting regimes. we have seen jay powell putting the huge focus on the labor market as well. it is hard to see the labor market is going to recover quick enough to see the fed tapering anytime soon. rate isk up in the cpi going to be temporary unless we see that recovery in employment joining the party. kathleen: i think you make a very strong argument for this being a long process. now let's get to karina mitchell with the first word headlines. karina: the world health

organization is prepping for its fact-finding trip to china to investigate the origins of the coronavirus pandemic with chinese scientists. the news comes as reported deaths from covid-19 approached 2 million globally with infections above 90 million. a second team is already in china working on potential international vaccine approval. the reserve bank of india is warning that surging debt and soaring financial markets are a rising threat to financial stability. the rbis says the nonperforming asset ratio is to rise above 13% this year, almost twice the level of a year ago. if that holds through the fiscal year ending march 2020, it would be the worst since 1999. india's banks face one of the worst ratios in the major economies. more wreckage and remains were recovered from the air crash at the weekend. all 62 people on board i thought

to have died. the jet was a 737 of hundred model originally launched 25 years ago and was far older than the 737 max that is now returning to service. there are reports the flight recorders have been recovered and data retrieved. the chairman of ubs is ralphating his ceo for hotter's following an investigation into his role into a money laundering scam. speaking at the greater china conference, he said at the time of the ceos hiring, ing had settled the inquiry with dutch prosecutors. very convinced that for us and nothing has changed at this point. there is no new news. we are monitoring the situation and we will update it as events happen. i have him confident -- i am confident he has all the ability to do what he needs to do as the ceo of ubs.

karina: 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. kathleen: more breaking news on a story that bloomberg news has broken that mike pence, vice president, pledges to work with trump through the end of his term and his term as well. is according to an official close to the matter. this of course as nancy pelosi has been getting ready to do an impeachment bill and get that process going in the house as many have asked mike pence to urge the president to resign. it appears nothing like that is going to happen. donald trump spoke some of very harsh words to and about mike pence on last wednesday when the conservative group stormed the capital saying he did not have the courage to try to block the

electoral college vote. this is obviously some kind of -- as markets watch this process of transition so closely, a new factor to add to the mix. up, more guests from the ubs greater china conference. tom mackenzie is at the event in shanghai. who are we speaking with today? we have another great lineup of guests from the conference in shanghai. we are going to be breaking down the consumer sector. the opportunities with ubs. we are going to be talking about china's strategy and the outlook for the a share market. will be talking with the head of the aipac investment banking system for ubs. get his views on the expansion here. we will be talking health care. about aalso be talking robo taxi company. would you ever take a drone

taxi? that is a question we will be putting to the cfo of that business. what's more guests to come from the ub -- lots more guests to come from the ubs greater china so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.

kathleen: we come back to breaking news from our own bloomberg team in washington. vice president mike pence is pledging to work with president trump through the end of trump and his term. according to an official fro familiar with the metal. emily what -- with the matter. emily wilkins is in washington. what do you make of this? >> we did hear a little bit last week it was unlikely vice president mike pence what invoke the 25th amendment. that is the one that says trump is not able to serve as president and that would mean

pens would take over as president. we are getting clear conversation -- confirmation on that. workn trump are going to together until the end of .rump's term if democrats want to see trump removed, their only option is impeachment. we hear the house republican leader is objecting to this. is there going to be enough support for this article of impeachment? we know the house is planning to consider this on wednesday. >> at this point, democrats have enough votes they need to have the measure be approved by the house and go on to the senate. you are hearing opposition from house republican leader kevin mccarthy. he had a discussion today with other republicans. you are seeing some republicans say they are at least thinking about supporting impeachment and voting for it.

we expect to have a clear picture in the next up will days exactly how many republicans might be supporting this measure. kathleen: how many republicans in the senate might shift over to supporting voting for impeachment now and the cutoff date, january 20, joe biden takes over the white house and we are going to have a senate that tilts slightly democratic. are.ese are all things we keeping an eye on certainly a number of public and senators have come forward and voiced deep concerns about what we have seen through trump the last couple of days suggested they might be considering voting to remove trump from office. it is a weird thing because this trial probably will happen after biden is inaugurated. it is going to be a matter of the senate does have to have the trial and come to some sort of conclusion about whether or not

the president is guilty of the things the house has convicted him of. haidi: the corporate backlash against those who objected to the election vote continues. >> yes. we are seeing an increasing number of corporations distance themselves from those -- oricans that supported rather opposed approving the electoral college vote. saying that they will no longer be donating to them or they will withhold donations to them. this is going to have a big impact. 130 nine house republicans, eight republican senators who to oppose one state's electoral college vote. we will see how this continues to play out. our government congressional reporter with the latest. with the turmoil in washington, the former ambassador to china told us earlier what he thinks

impeachment is a mistake. >> first of all, i think what they tried to do a year ago at this time was wrong and failed. the president is about one week from completing his term and i believe that it would be a big mistake. the new mist -- the new administration needs to focus on fighting a covid virus and getting the economy restored and getting their people confirmed to the leadership positions. that takes a long time. i know in my confirmation it took all the way from january until may until i was confirmed as ambassador. to my knowledge, president-elect biden still has not named a new ambassador to china. the confirmation process takes a long time. they do not need the distraction trial going on

simultaneously. what do you think is the future for donald trump? >> i do not know. i think he has been a very successful businessman. his america first policies i think made a real difference. in in my state the phase one of the trade agreement has made a big difference. the price of corn has gone from three dollars to five dollars. this was just in september, the price of soybeans has gone from nine dollars to $15. we have profitability restored. we have action on protecting intellectual property rights, opening up the chinese market for insurance and financial services. we need to make sure that those gains that lighthizer and mnuchin were able to get in the negotiations are enforced and hopefully strengthened by the new administration. former u.s. ambassador

to china speaking to tom mackenzie. more from the ubs greater china conference ahead including our exclusive with the chairman. plus, we will speak to the leaders of china consumer insurance strategy, the head of asia investment strategy joins later. this i

kathleen: now for a quick check of the latest headlines. michael jordan has racked up another important when in china for intellectual property rights. has made ashanghai local company to stop using the name that translates into jordan. the company must stop using his famous 23 and make a public apology. the whirling is the latest in around 80 separate cases filed by jordan in recent years.

bedit suisse is said to considering cuts of 10% to its bonus pool as a series of profits hit last year. could go as high as 15% and would be a change from previous years when the bonus pool was left untouched. a breakdown of nearly $4 million. the company says it will close two factories immediately and a third by the end of the year. construction will eliminate about 5000 jobs mostly in brazil and also infecting some workers in argentina. california-based electric carmaker lucid is said to be in talks for a public listing. deal could be worth up to $15 billion.

raised churchill capital $2 billion last year it is being used as the vehicle for the potential recent deal. we do have one stock that we are watching. sugar is on the rise. syria's covidon patients. it is up by 16%. up by just over 13%. drugis the pharmaceutical rising in the u.k. that drug being used to treat serious covid cases. coming up, the ubs chairman is standing by the new ceo. we will have the highlights from our exclusive interview next. this is bloomberg. ♪

karina: this is daybreak: asia. have launcheds impeachment proceedings against president trump with a vote possible on wednesday unless vice president mike pence removes the president first but that seems unlikely. trump and pentz met on -- trump and pence met on monday. an official says they have pledged to work together through the end of their terms. suinging site parler is amazon after being removed from its servers. amazon's move follows apple and overe dropping parler

concerns about incitement. big tech slumped in the fallout from the events on capitol hill. -- andk and google puppy google facing popular criticism. is enhancingt safety measures to ban individuals linked to potential criminal activity. airbnb says it will cancel any reservations in the d.c. area if renters are associated with hate groups and will take legal action against guests if they shelter others planning violence. to investigate the origins of the coronavirus pandemic with chinese scientists. the news comes as deaths from covid-19 approach to million globally with infections above in million. a separate team is already in working on potential

international vaccine approval. 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. haidi: let's take a look at our markets. we are heading over to sophie in hong kong. sophie: this tuesday, asian stocks are mostly lower. australia is the outlier adding 2/10 of a percent. elsewhere in korea, we are seeing the kospi lower by samsung. the nikkei fluctuating around 2000 shared some pressure coming through for japanese stocks after the long weekend. flipping the board, we have some bright spots. leading the best performers on the nikkei. we have it rising to a fresh record high. jumping more than 16%. a drug said to be

effective. in japan, the drug has been effective since last may. bloomberg intelligence expecting that they will post solid results in the fourth quarter helped by the strong sales. quickly checking in on when more stock mover. that stuck jumping. latest earnings results are positive. for the retailer is improving, seeing hyder margins -- seeing higher margins. thanks so much. ubs is sticking by its new ceo. investigationg an relating to money laundering at ing group.

>> we have actually downgraded our short-term protection for the first quarter and for the last quarter of last year. we are probably going to see a double-dip recession in europe where the first quarter be quite negative around -2%. and where there is a carryover into the first quarter this year, i think as vaccinations get rolled out, there is light at the end of the tunnel for the second half of this year. headwind.short-term medium to long-term, things are brightening up. tom: how does that inform your views about equity valuations? are you concerned about valuations or are they rational? >> for the short term, neither the european central bank or any other central bank is going to change their programs. that is going to provide good tailwinds for the global economy. we expect a strong rebound in

on into 2021 and carry 2022. tom: you touched on the ecb. the bundesbank has extended their purchases by 500 euros. they are going to extend that through march of 22 need to -- of 2022. >> they are extraordinary policies for extraordinary times. as we come into more normal times, i would expect to normalize asian of monetary policy to be the right answer. i doubt the global central banks will give that answer anytime soon. i do not think they will raise interest rates during the course of 2023. i think at best they might stop the purchase programs with tapering them slowly, which does not mean they stop buying totally. they just reduce the number of purchases and continue to reinvest. this monetary policy will be

with us for a long time and i daresay may be too long because we did not get to normality in the 10 to 12 years after the financial crisis. that gave us a little room for maneuvering at the central banks. same is true for fiscal policy. board's current view of the dutch investigation into the money laundering allegations linked to ing? what is the view of the board at this point? >> regulators have much more i means then we as a board to look into this matter. we are very convinced for us nothing has changed at this point. we are monitoring the situation. we will update it as events happen. tom: how confident are you that he will remain as the ceo? >> i am very confident he has all the ability to do a good job as ceo of ubs. that is where we are. there is no further update on that. tom: i want to get your views on mna and consolidation.

what is your view? what is the forecast for consolidation within the banking space? >> it should happen in a big bank. there should be a pan-european banking market. we need to get there now. we need to get there because of the challenges coming out of this covid lockdown that finance is needed to channel money where it is best used. europe needs a deeper capital market. that will not happen in fragmented environment. i think europe needs to grow into a true union. in that context, banks will consolidate. you see at the moment banks do not pay dividends. buybacks.t do share they are in a different situation then u.s. banks. in order to be internationally competitive, they need to grow

in size. china is a market of size. the u.s. is a market of size. europe is a fragmented market and that is reflected in the balance sheet of profitability. we has a swiss bank are very international. our major gross is not in europe. in europe we have an historical relationship at our gross is in china and the u.s. that is where we are looking into organic and inorganic growth. when i said in the past there will be consolidation, i did not necessarily mean ubs will be a consolidator. we do have the strength because we have a rocksolid balance sheet and a good capital position. international acquisitions are very difficult to do. you would not plan a few months away from your last year as a chairman. tom: should we tank that deutsche bank and bnp paribas are no longer under list as potential targets?

>> there are a lot of acquisitions that do not bring you much further. if we want to grow and if there are opportunities in both intimate or asset management, we will take those opportunities. retail or universal opportunities are a major distraction for years to come. priority.our top our priority is to grow wealth in asset management organically or in organically. we are the global number one. we need momentum. we want to also put distance between us and number two. haidi: the ubs chairman axel weber. this is bloomberg. ♪

haidi: consumer spending has continued to support the recovery in china over the past year. it is expected to continue into the first quarter of 2021. ubss get back to the greater china conference in shanghai. tom mackenzie is with us. i am pleased to say i am

joined by christine peng who is china.eater head of we will start with that question. haidi just posed the question about covid-19 infections in china. y global comparison. there is a locked in hubei. some pressure from local governments to restrict people's movements ahead of and during the new year's festival. a lot shopping is done. to what extent could this be a dampener on china's consumer sector? >> we have seen such resurgence of new cases across different regions throughout the country in 2020. the chinese government has dealt with it pretty well. goingicky thing is we are into chinese spring festival, which is the heavy season.

the restaurant sector. i think the lockdown could potentially impact the consumption for the chinese new year. expect china'su consumer to get back to pre-pandemic levels? national look at the statistic data, the china retail sales growth is already back to normal in september of 2020. i would say consumption is already back to a pre-pandemic levels since q4 of 2020. even for the restaurant sector, the restaurants were back to normal in november. the chinese consumption is already back to pre-pandemic levels. into 2021, we are seeing that the consumption grows even

faster than gdp growth. tom: how broad-based is that? what parts of the consumer sector are fireeye on all cylinders -- are firing on all cylinders? how does it all break down? >> we break down among different sectors. the food and beverage sector is seeing the fast as recovery in the second half of 2020. most of the consumer staple are already back into positive territory. some of the companies even see the recovery happening in the second quarter. for the consumer discretionary companies, we are also seeing a recovery happening in the home appliances sector. the restaurant sector, we are seeing a recovery in the first quarter of 2021. tom: what is the earnings outlook toward the consumer sector?

>> we are positive in 2021. we are anticipating for 2021. tom: is it more driven by fundamentals or multiples? earnings-per-share or multiples? >> in 2020, the consumer sector has experienced [indiscernible] going to 2021, i think share prices will be driven by fundamentals instead of valuation. tom: what parts of the sector are valuation looking most attractive? discretionaryr sector is looking attractive to us. i mentioned major home appliance sector. the earnings are coming back in the second half. we are seeing consolidation in the home appliance sector as well. the valuation is becoming relatively more attractive than the a-shares for consumer

company. for the a-shares, we are seeing low-quality consumer names at very cheap multiples. tom: you talk in one of your reports about the property sector up cycle. catalysthat doing as a to some of these parts as the consumer sector? have a positive ,mpact on the home appliances especially for some categories which are highly linked with other cycles. for example, kitchen appliances. that sector we think will be positively impacted because the furniture sector, this sector is seeing a broad recovery in fourth quarter of 2020. tom: export demand was a key chinesef growth for the economy in 2020. what does the export picture look like in 2021 and how is

that factoring into consumer demand? >> our economy is projecting a very strong recovery in export growth in 2021. mainly driven by the recovery in broader recovery globally. we are seeing chinese manufacturers becoming even stronger. china is one of the first of a few countries back to their normal activities in 2020. export sales growth will be very strong especially for some categories like home appliances. tom: what parts of the sector do think we are avoiding or you would caution against having too much exposure to at this point in the economic recovery cycle? >> we actually are cautioning to avoid some companies with extremely high multiples because toward that expectations some of the high-growth

expectations are very high. sectors, we are asking investors to avoid. traditionalor is growth rate companies because [indiscernible] as well as the highly competitive community format which is very hard nowadays. focusoes the regulatory change the way you are thinking about groceries, this crackdown on some of these e-commerce companies? >> we do not really think the trend will be changed. we have seen regulations happening across other categories. in 2018, we are seeing regulations in education sectors. we are not surprised. going forward, e-commerce would definitely go up for the grocery

sectors because consumers have changed haters during the pandemic. the question is which company will be leading the trend. tom: thank you very much for your time. ater china head of consumers sector. giving a broadly optimistic view. stronger retail sales will do particularly well in 2021. kathleen: thank you so much. the consumer is soap important to -- is so important to china's recovery. coming up, more from the ubs greater china conference. the china gauge 5% higher by year end. do not miss three exclusive interviews. ubs aipac investment banking head is with us. plus, we speak to executives from a pharma company and an autonomous drugmaker.

up next, a wild year for dealmaking in japan. we will look at them many signs pointing toward m&a action in the coming months. this is bloomberg. ♪

haidi: a quick check of the latest headlines. erickson has won a key decision over samsung with samsung being

told it cannot use a chinese court ruling to block a u.s. bench from determining royalty rates. erickson filed against its arrival in texas claiming it fuse fused -- it refused to negotiate. the world's top maker of motors for everything from hard drives to powerplant is betting a can make a key tesla component cheaper and better. they want top lever talks with elon musk saying tesla will not hit production targets without an export -- an expert partner. let's go to market value -- it has a market value of $80 billion. the softbank vision fund has sold $2 billion of uber stock. an average price of $53. although the sec filing shows softbank still holds 184 million

shares. uber.stakes in 2021 shaping up to be one of the most active years ever for dealmaking in japan after it's all a resurgence in the second half of last year. what is the state of japanese dealmaking right now? when you see an economy that has had negative growth for three quarters in a row still having a virus emergency, it is amazing to think of a dealmaking surge here. >> the coronavirus took an impact on dealmaking in the first half of last year, which was depressed. in the second half, we saw a real resurgence over the last 12 months that there was not much of an impact overall on the total amount of deals that were being done.

in the second half of last year, you saw a lot of big deals being completed domestically. there was ntt. not a lot of overseas deals. not a lot of very big ones. that sets the stage for this year for 2021 to maybe see some more overseas dealmaking come back. haidi: are we likely to see an acceleration of that? particularly as these companies in japan continue to sit on these massive cash piles? >> as you say, companies in japan have a record amount of cash they are sitting on right now. there is also a lot of increasing external pressure, which did not always exist to put that cash to good use. it has been good for them to have the cash bumpers over the past -- during the pandemic.

we should see an uptick in overseas deals. there is still a bit of a challenge in that so long as overseas travel is depressed, it is more difficult for japanese executives to make overseas deals happen. they tend to like to travel to make personal travel. -- to make personal connections. i am told that is more difficult now. should should see is we see the cash piles bidding put to use. there is a lot of pressure both to use the cash and companies offload inclined to assets than they were before. you are seeing a lot of that from shareholders wanting the cash to be put to good use and companies to be more focused on core operations. we should see an increase in that pressure over the next 12

months as well. our senior editor in tokyo. let's get over to sophie for what she is watching. sophie: on monday, chinese stocks took a tumble on the mainland. a-shares topped 11,000. cheney's telco shares saw a rebound. h-share futures. we are keeping an eye on developments from hang seng. they will study customized solutions. sci motor on watch. income may dropped 22% year on year due to the virus. jockeying for customers with more marketing expenses. kathleen: thank you so very much. coming up, the asia global --titute's

as jode biden prepares to enter the over office. lawmaker onanese the decades-old diplomatic restructuring with taiwan. our coverage continues. this is bloomberg. ♪

tom: it is 9:00 a.m. in beijing. we are live at the ubs greater china conference. welcome to bloomberg markets the china open. i'm tom mackenzie. just counting down to trade.