haidi: good morning. we are counting down to asia's major market oak. that market open. shery: big tech ways on markets. facebook and tesla both report disappointing earnings. apple hits $100 billion in quarterly revenue for the first time.

investors now await samsung earnings. the focus will be on how much is pouring into chips. and how much will be returned to shareholders. the gamestop phenomenon. the sec and bided administration say they are monitoring volatility as retail investors gang up to squeeze shortselling had funds. plus, jay powell repeats that the fed is nowhere near tapering stimulus, saying it needs substantial progress on jobs to end inflation. haidi: let's take a look at how we are setting up for this torrid trading session. it was a remarkable session as we had all of these concerns coming into create a perfect storm that caused that selloff on wall street. those losses, asx stocks by -- down by about 0.2%.

numbers due to the pandemic effect, we saw that also weighing on sentiment. nikkei futures looking a little bit positive at 1/10 of 1%. snp futures looking like they will extend those losses for another session. a word on currencies, risk off move spread to the kiwi and the aussie. most of those steady and holding those losses. mostly 1% lower. let's get to tech earnings. it is a first for apple, quarterly revenue topped 100 billion dollars for the first time, fueled by strong holiday sales. let's discuss the numbers. what stood out to you in this set of earnings other than obviously the headline milestone we just talked about? >> it is an incredibly impressive number.

it just shows the total dominance apple has over the pc, iphone market, and their services business could not be better timed to be at the maturity level it is at. the benefit of really moving into a services at the right time. apple appears to still be a core holding firm but i think core holding for all investors because they continue to dominate their markets and create great products. haidi: there has been so much expectation over this so-called super cycle. is this on concern that the outlook from here is looking perhaps not as optimistic. ross: no, i think apple stock has run up along with the entire stock market to a very high level. price-earnings ratio is the highest it has been in a decade. the fact that it sold off a

little bit after a strong earnings number does not surprise us in any way. stocks anticipate the future. these little selloffs are little blips in the road and opportunities for investors. shery: actually called apple a solid but also a very boring company. do we need a boring these times of gamestop and even tesla that has a cult following? ross: i was talking about this earlier today, you kind of one thing in your portfolio that are solid as a rock, and things that have some level of risk and growth opportunities like tesla.

the gamestop and amc's of the world are more like gambling, and there is a place for that with a small amount of your money, but i would suggest staying away from it. it is no different than betting on the super bowl. i recommend betting on the super bowl, probably easier. shery: tesla, we are seeing downside pressure. six consecutive quarters of profit. ross: i am not disappointed with tesla at all. it is a very high compensation for ceos but well-deserved given the returns for shareholders. elon's compensation. actual top line, cash flow numbers, new model s refresh, the car looks amazing. i will order one when i can. i cannot wait. i am excited for what tesla has to say in the conference call

later and i think their numbers are fine, they are great. haidi: when you take a look at the numbers, gamestop to tesla, then you talk about apple being a boring company. apple considered a visionary but certain not in the mainstream always as it is now. in five or 10 years time, what will be the boring company not considered that at the moment? ross: the one that gets to where it needs to be adventures, i think that is tesla. when you look out 10 years, i see tesla being like an amazon or apple. hopefully elon will in his older age, down a little bit. i don't know if that is a reality. i don't know if i am going to come down either. but i think that tesla will become a mature company one day. it is in hyper growth mode right now.

and it will be a more boring company went the achieve all their goals and get super huge. but that is the lifecycle of a company. i would love to see that happen over the next decade. haidi: as we await everyone to get a little bit more boring, where do you put your money given that we could be seeing regulatory scrutiny. elizabeth warren saying she is waiting for regulators to do their job. where do you look for opportunities? ross: first of all, politicians need to regulate themselves. they are very corrupt, many of them, insider trading, doing very questionable behavior themselves. i think politicians should be regulating themselves. second, markets are performing has market should do. this was performed by hedge funds over shorting stocks using naked shorting techniques using enormous leverage to put

companies out of business. the fact that retail investors have used a blog to communicate so they could kill a ridiculous short position, which was actually led by professional investors who bought gamestop, none of this is questionable, in my mind. this is the way that markets behave. sometimes, the markets behave irrationally because of outside forces but they correct themselves. you will see that with gamestop, amc, blackberry, and the like. right now, it is a game of long versus short. that is what i love. that is what markets are all about whether we like it or not. shery: always great to have your thoughts. insights into everything that is going on across the markets right now. you can turn to your bloomberg for more on aldi big tech earnings. commentary and analysis from

bloomberg experts. for now, let's get to karina mitchell with the first word headlines. karina: coronavirus infections seem to be easing in the u.s. with new york governor andrew cuomo lifting restrictions in most hotspots. the european union is in dispute with astrazeneca over vaccine supplies, putting the drugmaker on a collision course with brussels. france and a decision on a third major lockdown. france warning that it's national lockdown could continue for another six weeks. prime minister boris johnson says the measures are being reviewed but will not be eased until march at the earliest. people arriving in the u.k. from virus hotspots are now subject to 10 day quarantine. travel inside china is slowing as people are warned to avoid

gathering before the lunar new year. rush-hour traffic congestion in beijing and shanghai is below typical 2019 levels for a second week in a row. the international olympic committee is increasingly confident that the tokyo games will go ahead in july with the so-called safety playbook nearing completion. the ioc president says measures at sports events around the world indicate the games will be possible. he says the intention is to hold such events, not cancel them. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. back to you. shery: still ahead, big earnings on deck in asia with samsung due out this hour. we break down the numbers with idc senior research manager. but up next, jerome powell makes it clear that the fed will not

taper anytime soon but then fails to soothe investor nerves. this is bloomberg. ♪ - i'm doug hirsch. you may already know that goodrx can help you save up to 80% on your prescriptions. unfortunately, many americans can't get to a doctor right now. the good news is that for many health issues, you can see a doctor online. it's easy. just go to goodrx.com, and with a few clicks, you'll be treated by a licensed medical professional, all from the comfort of your own home. visits are confidential and affordable.

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haidi: the federal reserve is still a long way from starting to exit from its super stimulative monetary policy as unemployment rename -- remains high and the speed of the vaccine rollout remains uncertain. kathleen hays is here with a recap of the fomc decision and of course chair jay powell's press conference. too early to exit, is this powell's new mantra? kathleen: it seems that way. the fed position at the meeting, powell's position at the press conference, not a surprise. not a surprise they left their key rate around zero. confirmation though. confirmation that jay powell says it is still too early to

even think or talk about exiting. >> in terms of tapering, it is just premature. we just created the guidance. we said we want to see substantial further progress toward our goals before we modify our asset purchase guidance. it is just too early to be talking about dates. kathleen: he knows that millions are still unemployed. the fed's job is not done yet. in fact, job losses in restaurants, hotels, still in the millions. the vaccine rollout, very important. it has been a be at the beginning but inoculation, widespread vaccinations will bolster a healthy second-half rebound. he is not worried about inflation. in fact, he said the fed would welcome inflation. he is not worried about a bubble.

he also said, we can't use monetary policy to address day-to-day market moves. asked about gamestop, jay powell said it is not something he will comment on. haidi: kathleen hays, our global economics and policy editor. jay powell was asked if he thought the markets could be causing instability. he said he did not think monetary policy was the key factor in property trading. let's discuss with the bank's chief global equity strategist. great to have you and thank you for staying up there in london. it is interesting, jay powell sounding super dovish. stocks still dropped the most since october. he said that the correlation between asset prices and liquidity is perhaps not as tightly correlated as some would say. would you agree? >> yes.

i think the framework is still quite supportive for risk assets. we are early in this cycle and we are just approaching a point where hopefully economies are coming out of a deep recession. the fact that ager central banks, the in particular, are prepared to give such aggressive forward guidance it's going to be a support for the broad cyclical recovery, which we are expecting. on the other hand, in a short period of time, i think these two things are not necessarily correlated. looking at the way that markets moved between risky and less risky asset classes, did suggest quite a lot of vulnerability to short-term coming through.

haidi: i have got to get you to weigh in on gamestop. a live pitched this as a david and goliath marketization. does not really review any of the dysfunctional aspects of this market. is there a real threat to hedge funds? >> i would not comment on the specific markets. real interest rates are negative. successful physical polities -- policies to stabilize growth during the downturn. that was leading to speculative behavior in certain areas. i do think that does not necessarily fit with the broader

market developments, which i think are quite reflective of the fundamentals. we have seen a sharp rebound in broader equities from the march lows. over the last nine months, that recovery has been almost identical to the one we saw in 2009. when you think about the policy-setting, this aggressive monetary policy easing, guidance , with the prospects of a very strong economic recovery coming out of this downturn, i think that is what is fundamentally supporting broader equities. there may be areas of excess within the broader market, but i do not think we are seeing a bubble in overall broader indices. i think they are quite reflective of the fundamentals. haidi: could that volatility

filter through the broader markets now that we have a newfound power of retail traders? >> yes, and it is interesting that volatility remains quite high, even when markets were rising quite sharply. i would say, again, that in our framework, what we are really seeing is a transition from the first phase of a bull market, which nearly always starts when profits are actually falling, and that is why that first phase tends to be driven by sharply rising valuation, just as we have seen over the last 6-9 months, then if we -- associated with volatility and then the sector.

right now, of course we have a particular struggle between concerns of the lockdowns, rising infection rates. we see optimism in vaccinations and the rollouts, which will create a strong rebound as economies finally open up i think there has been some vulnerability in the very short run that the optimism about vaccines could be questioned. i think that is really what has been going on right now. >> investors should be buying in right now with the volatility, where would they go and find opportunities for the cyclical rally. >> i think the trade-off between the short-term tactical positioning and liquidity. i think markets were vulnerable

to setback but we still believe we are going into a strong economic recovery. our own views is that we will see global growth of around 6.5% this year, 4.5. i still think that will drive markets higher from this setback. this could be seen as a correction in a new equity cycle. it is likely that recovery, when it comes back again, will be led by more cyclical and value parts of the market, which have much more leverage to a pickup in world trade growth, and which are also cheaper in the market's broader context. so that is really where we are looking at was to the opportunities.

>> we will have more from the goldman sachs global macro conference later. chief equity strategist on bloomberg markets at 9:00 a.m. in wrong. president biden has acted swiftly on his pledge to address climate change, signing a series of directives that will impact industries from fossil fuels to commercial fishing. telling editor-in-chief that the public and private sectors will need to work together to get real results. >> in a world where we see rising populism politically worldwide, and much of that populism has been created because of people's fear of their future. they are fearful of these issues. this is why segments of society in my mind are fearful of this conversation of climate change. there are millions of jobs

connected to hydrocarbon industries and other industries created -- other industries connected. let's be clear, we are moving fast, think about how fast we are moving to ev, and how quickly we move to ev vans and other type of vehicles. we are moving quickly. i think technology has to move even faster. bill gates talks about this extraordinarily well, that if we are going to get to a net zero carbon world, it will only get there on the back of technology advancements. that is why we need to be investing in these new technologies and it will be through the finance of new technologies, the only realistic way of us moving forward to a net zero carbon world. >> just to push you once again on that issue, you talk about a just carbon transition, at the moment, that is slightly being

left to the markets, capitalists like you or bill gates. in a strange way, this is something where surely government or society as a whole should be trying to make decisions about this. it should not be business making these by themselves. there was an interesting survey by edelman coming out that people trust companies more than politicians. in some ways, that might reassure you. doesn't it in other ways make you feel kind of sad? >> i am pleased that i am in a group of business leaders that are doing the right thing. i think that is what the edelman survey is indicating that is being recognized. >> but without government doing anything, without china or america or india doing anything, nothing will happen. what you doing makes a difference certainly but in the

end, it is about the state. >> you are right. what i was going to say is we need government's involvement. what i can do is help move along public companies. if we are really going to be moving to a net zero carbon environment, all of society has to move, not just public companies. public companies represent only a small component of the economy. state and local governments will have to move forward and what they do. government represents a large component of society. governments will have to move forward. i indicated my letter this year, it is not just governments, but i am asking large private companies to move forward in this, too. this is something that we all have to do and we have to do it in conjunction. the only way we will be able to finance this, to impact climate

change on cities, country sides, on the physical impact of climate change, is going to have to be done through a public-private type of investment scheme. there is two private capital looking to invest in these types of opportunities. we need to have a large infrastructure program to prepare ourselves for this transition. and then -- just like the internet, how it has changed our daily personal and affectional lives, i believe governments worldwide are going to need to invest in the rmd of how to prepare for climate change, helping us design and build new technologies, from battery storage, the efficiencies of batteries. if we had strong, efficient,

cheaply made batteries, we will be able to transform our power grids so much more rapidly. so there are many things we need to do. we need to find ways to better sequester carbon, many things like that, planting more trees. this will all be part of a long-term process. but, it can be done with government and with business. >> blackrock ceo larry fink speaking at the year ahead conference. take a look at some after our trading. we have seen gamestop under pressure, down 9% after hours. this after climbing or than 140%. a surge in companies that have not had any change to underlying fundamentals. a company confirming -- the wall

street that's read it has been one of the drivers of this unprecedented rally. apple and tesla also falling after hours. apple despite the fact that its quarterly revenue topped $100 billion for the first time. this is bloomberg. ♪ ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you?

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karina: this is "daybreak: asia ." the federal reserve says it is nowhere near exiting its stimulus program, leaving rates unchanged. it is maintaining its bond buying strategy at $120 billion per month until "substantial progress is made. jay powell says it will take some time to achieve the necessary conditions for a shift in policy. >> fiscal policy has been essential. when we look back on the history of this period, we will see a

strong and sustained fiscal policy response. we are a long way from full recovery. as many people unemployed as lost their jobs at the peak of the global financial crisis and great recession. karina: vietnam is planning to relinquish most state control of the economy in a drive for greater growth and productivity. delegates at the communist party conference are expected to call for a five-year plan that calls for the private sector to control half of the economy by 2025. indonesia is boosting its pandemic stimulus by almost half as virus cases top 1 million and max fascination plans struggle for traction. now, 39 logan dollars, 49% higher than previously, and may be expanded even further.

the finance director told parliament that the government will keep the deficit within the target. the indian government looks set for renewed confrontation with farm groups, with both sides refusing to back down. police are investigating protest leaders as farmers continue their protest against new laws they say will make family-owned operations on viable. they say video evidence is being examined and no one will be spared. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. haidi: said to have submitted plans to become a financial holding company overseen by the pboc. the dow jones reporting they will be subject to more stringent rules amid pressure from beijing. our chief north asia correspondent david engel is

here with that. we heard from the pboc governor just a couple of days ago may be giving a little bit of cautious optimism with the possibility of the ips resume -- with the possibility of the ipo resuming. what do we know about this now? david: at the world economic panel on tuesday, they said the matters are complicated and need lve.ear legal framework to giving a sliver of hope. the problems, more and more reports on the scope of this regulatory crackdown, and the focus and emphasis is on maintaining -- on preventing financial risk as well as breaking up monopolies. it will be an arduous, lengthy task indeed. do not rank your savings on it happening because, again, this

dow jones story is basically extrapolating on other reports we have had this month, essentially saying that aunt plans to turn itself into a financial holding company. dow jones is reporting that this financial holding company would be overseen by the central bank. that would basically said -- basically subject ant to more stringent requirements to fall more fully in line with financial regulations. the concern regulators have seems to be the potential under its current form right now as it has lending as well as payment platforms. different fingers in different pies, that there is the potential of regulatory arbitrage. the financial industry has strict regulations but technology platforms have been able to grow quite rapidly and large without the same kind of

oversight. regulators are reportedly specifying five main demands. go into that holding company, number one. return its initial root business to payments. on the lending platforms, you have to safeguard personal data and breakup the monopoly position that they have right now with more than 90% of the payments market. that is a $10 trillion market in china and growing rapidly. you have to improve corporate governance, apply more discipline to securities and wealth management. we could go on the entire hour here talking about the needs these companies have to take under the proposed draft guidelines. shery: there was a lot of speculation that perhaps a lot of the new regulation was more focused on the e-commerce given what is happening right now.

do we have any more clarity on how far beyond this regulation of tech buddies could go? stephen: ant has become the poster child. it could affect all participants. all three financial watchdogs have made it their primary goal to curb what authorities have been saying is a reckless push of firms into finance. these technology firms into finance. they have basically been saying there has been loose regulatory oversight and this has fueled this breakneck pace of growth. it surely means a looming shakeup of the more than 7000 micro lenders in china. ant has just spend and just lend. it has become their biggest part of their business. bigger than payments. and then there are all these

other 7000 micro lenders in china. surely, these new rules are going to affect more, beyond that into every milk and cranny of internet finance. payments, credit scoring, wealth management, and of course the fraud written peer-to-peer lending. so we are just beginning really. shery: stephen engle they are, will keep us updated. coming up next, big earnings on deck in asia. following the results in the u.s., with samsung due out anytime now. we will break down the numbers. this is bloomberg. ♪ ♪

haidi: infosys has raised its revenue forecast and joins a rival and pushing for a post-covid digital transformation. the software giant plans to accelerate hiring in the u.s. and europe as a part of that effort after trumpcare of policies forced to overhaul its traditional reliance. what changes he sees after the pandemic. >> large enterprises globally are spending or and more on digital transformation.

with all of the capabilities we have built up, we see that reflecting any numbers we have in the last quarter. digital business growing at 30%. becoming half of our company. my sense is that this is going to continue. many large enterprises are now seeing that by investing in digital transformation, cloud, they are more and more able to connect with their end customers or employees, or supply chains. that benefit will keep accruing to them. that growth will create continued drive to digital transformation. >> you have your largest deal by an indian i.t. services company in history via videoconference. how times have changed. do you think remote working, remote meetings, will become

more mainstream even after the pandemic? >> i think some of that will continue. some of our clients have realized, we have seen remote work as possible. we have 97% of our employees working remotely in terms of delivering services. we are seeing a tremendous level of connect with our clients. there is also a concept we have talked about on social capital, where there is a need for people to come together again, rebuild that working team spirit, to understand each other. certainly, a lot of what we have learned here will be applied to the future. >> what does it mean for india's

i.t. services industry? >> the overall industry, the demand for digital and cloud, data analytics, cybersecurity, iot, is just huge. if those capabilities are built as we have built over the past few years, we see tremendous benefit. if you reskill your employees, tremendous benefit. from our perspective, quite a positive outlook for services and probably within the i.t. sector given all of the capabilities. >> with the policy, what do you hope to see? there so much emphasis on h1b visa for talent, for example. >> we have built what we call localization, within europe, the

u.s., and us really a, and across other geographies of asia. we recruit students from colleges locally. for example, we recruit about 2000 college graduates outside india in the past 12 months. about 15,000 college graduates within india in the past 12 months. both of those numbers will be higher for the next 12 months. this localization approach, digital centers, digital labs in europe and the u.s., that helps us to build a more resilient approach to the future. that is our hope. which can work with multiple scenarios. shery: we do have breaking right

now. we are getting samsung's fourth quarter final results. fourth quarter consolidated operating profits coming in at 9.0 5 trillion, slightly below estimates of 9.5 2 trillion. sales for the fourth quarter coming in at 61.5 5 trillion. net, 6.4 5 trillion, below estimates of more than 7 trillion according to analysts. again, samsung's fourth quarter consolidated net. all eyes were focused on samsung 's guidance when it came to capital spending after some major strategy changes. will be watching for more details. in the meantime, we are getting the latest net for the fourth quarter. the estimate was for around 7.3 trillion.

so, he little bit of a miss. this after samsung's stock has seen a huge rise. consumer electronic operating profits, 9.0 5 trillion. we will try to wait for more of those details to trickle down. for now, let's discuss on what we have got so far and, as we see the headlines right now, fourth quarter i.t. and mobile operating profit, again slightly below consensus estimates. also, samsung expecting a weaker fourth quarter result overall. fourth quarter semiconductor operating profit could begin at 3.8 five, again, below consensus. fourth quarter display panel operating profit, 1.75 trillion,

a little bit higher than consensus of 1.1 trillion. give us your thoughts as you see these numbers. >> i would say, sounding like a broken record, that the pandemic has been great for the tech companies, and that includes samsung. q4, we see good results coming from the main division, the smartphone division. we see strong year on year growth. for the bigger part of the memory division, we see growth in q4. we expect growth to continue in 2021. it has slowed down a little bit but we expect it to start to stabilize. shery: when it comes to consumer electronics, operating profit above 9 trillion. also, when it comes to the mobile operating profit. we are getting those dividend

numbers. year end dividend, 1932. of course, we were waiting to see how much samsung would return to shareholders. we have seen some recovery when it comes to samsung's numbers in the smartphone's nest. we have seen apple also doing pretty well. what does this market look like? >> the recovery last year, they did very well, especially in some of the key markets like india. slight risk between india and china. also, the supply chain was more resilient. samsung did make a good recovery in the india market. at the same time, in quarter four, apple reporting such strong numbers for the iphone and samsung being one of the key

suppliers, it has been good for samsung business as well. haidi: what about the competition in terms of the smartphones? there is speculation that we are seeing another super cycle for apple? kiranjeet: unlike apple, which would see a super cycle every couple of years, we don't see that for others, including samsung. it remains intense. receding from a lot of the local markets, including the china market. apple, samsung, others including xiaomi. that is intense competition and there is only so much samsung can get out of it. haidi: do you expect the strong demand when it comes to the ship business and those results to

continue? kiranjeet: we do expect at least in the first half of 2021, we expect memory chip demand to continue. we can continue to work from home. even home learning purposes. so, for the first half at least, we expect demand to continue. we also believe that things will start to stabilize. the growth we saw in 2020, this is probably not likely to continue in 2021 as things get back to normal. >> we are getting samsung's year end dividend. of course, remember, we were watching that, given that they have some inheritance tax considerations for the company. let me ask you a little bit of

what is happening in the capex side of things. new strategies given the global shortage when it comes to semiconductors. we usually do not get those updates but what are you expecting for the rest of the year? >> all of the companies are scrambling to find week demand. we should expect some of these key companies in this segment to kind of ramp up their capacity which would also be an increase. >> senior research manager. we do have some breaking news. wall street that's -- walls treetbets, the subreddit page,

appears to have been made private. this has been one of the biggest market stories. the short squeeze on hedge funds as well, had its biggest day yet , more than $10 billion in market value. we are apparently down 15.4%. the latest being that the reddit page appears to have been made private. we also had an announcement from discord, the chat platform, saying they would not be hosting wallstreetbets on their platform anymore. we have seen this reverberate across the wall street establishment. the latest that a lot of these hedge funds are starting to see the impact. investing heavily into melvin capital, the hedge fund that had shorted gamestop. a loss up to 15% amid these

short squeeze losses this month. staying on tech earnings, facebook see in fourth quarter eps, topline, and ad revenues all topic estimates. but, the social media giant has warned of uncertainty this year. let's get over to su keenan for all of the details. what stood out to you? su: it was a big win for facebook and the fourth quarter. sales were up 32%, earnings, revenue, and ad revenue up. they did warn that the second half of 2021, they would see slow growth. a lot of people gravitated toward facebook during the pandemic. a rise in the number of monthly users, 2.8 million. that helped the revenue, and a

lot of that had to do with people shopping online during the holiday period, fueling the demand for digital ads. they did have a lot of peak shopping in the fourth quarter. but, looking ahead, facebook is talking about apple being its major competitor. apple recently did a change to its software on the mobile phones where it is asking people going on certain apps if they want to be tracked. facebook thinks most people will say no. i would agree. they believe that is going to impact negatively facebook's advertisers from being able to target the people they want. shery: you briefly mentioned how facebook has been doing pretty well during the pandemic. elaborate a little bit on that and where we saw these bright spots. su: the bright spots, people wanting to connect more. they can't have in person contact so digital contact has been great. working for -- working from home

also some usage sort. but, they saw this declining as we enter a new normal, as it were. a lot of talk on politics and the antitrust case. zuckerberg saying that he did not believe that a lot of the users want political content and that the number of civic and political chat rooms has probably gotten a little bit smaller, and he wants to keep it that way. in terms of the antitrust suit that has been filed against facebook and some of its social media counterparts, zuckerberg says the law does need to be updated but section 230 was very important and helped give rise to the internet as we know it. he also said the changes that will take place as a result of a lot the antitrust legislation needs to be thought through carefully and should not just focus on the big companies like facebook and google. haidi: su with the latest.

let's get you a quick check of the headlines. amc now caught up in the retail trading frenzy, rising 300%. it erased all of last year's losses with shares reaching their highest level since october 2018. almost a billion dollars which will help it through the next six months as movie theaters continue to battle the effects of covid-19. ms ci says it will not proceed with the chinese securities threatened by the previous administration. earlier this week, the index operator said it would drop mainland securities. it appears that the new administration in washington has authorized dealing in the security although they have not been officially listed. tiktok owner bytedance revenues nearly doubled last year. operating profits rose to about

$7 billion from less than 4 billion a year earlier. growth stems from the global success of tiktok and its chinese sibling. the company was last valued at about $118 billion. shery: take a look at some stocks trading after hours. gamestop down 27%. it has been a willie -- a really wild ride, surging as much as 140% in the regular session. we just had breaking news that the wallstreetbets reddit page appears to have gone private as well. talking about underlying fundamentals, tesla revenue just topped $100 billion for the first time. tesla missing profit consensus. we will be watching the suppliers of apple and also samsung. we just got fourth quarter

consolidated profits coming in a little bit below expectations. suppliers of apple and south korea and we also have suppliers of course in japan as well. this is bloomberg. ♪

>> welcome to "daybreak: asia," i'm shery ahn. haidi: i'm in sydney, agers meet -- ages major markets have just open for trade, the top story this arrow. big tech raises markets, facebook and tesla disappoint, apple hitting $100 billion in quarterly revenue for the first time. samsung profits missed estimates

amid warnings of weeks to come, however it does see chip demand recovering this year. and jack ma's and group -- a ntgroup turning itself into a holding company that could postpone its ipo. shery: take a look at the nikkei falling 1.7% after the gains in the previous session, we see utilities and consumer leading the decline. watch for apple and tesla suppliers, apple of course just topped $100 billion in revenue for the first time, tesla disappointing. both stocks are down. the topics is also losing ground, the japanese yen holding steady about 104. take a look at the kospi because we are seeing more than 2% across markets as well. we are watching samsung of course given that they just

reported slightly disappointing results for the fourth quarter, although they are saying that they do see consumer electronics posting stable results. we are watching samsung as well as those the pliers of electronic parts for apple and tesla as well. the korean won losing against the u.s. dollar. haidi: let's take a look at how we are trading in this part of the world, we have some weakness as a risk off move. we saw a better 1% loss when it comes to the kiwi and the aussie. about 2/10 of 1% each for the aussie in the kiwi dollars, taking a look at the equities we see declines around 2.3% as we are seeing trading lower by sydney stocks. we continue to watch the mining sector, iron shipments were at 5%, it sees the chinese demand as lasting. we have seen the pullback in iron ore prices and be reflected

in the decline as concerns way over chinese steel mills declining profitability. despite the full year of 2020 export import numbers showing that the country reported a trade surplus of imports. let's get more markets, we are joined by a market analyst. just going back to what we heard overnight, to the fed chair messaging also trying to put some distance between the volatility and the valuations that we see across asset prices and what he sees as the correlation with monetary policy. is it still liquidity at the end of the day that is driving the price action we see? >> good morning, yes i believe it is. there are a few things in play here, big tech results overnight and tesla did not meet market expectations most particularly in their forward guidance.

as far as that goes, chairman powell did say they have no intention of tapering just yet, it is not even a conversation they are having but i do not think it was dubnation of -- deficit -- a dovish enough. the markets want something more concrete in this is why we have seen a mini taper tantrum this morning where he did not come out firmly and say we are not thinking about it, so mid-2022 at least or 2023. he left it as an open question and we have seen the dollar rally and what we are seeing is a correction lower in stockmarkets after a pretty good run over the last month and also with that extended short dollar position opening in the market we have seen a short squeeze there. i think this will continue for a couple of days.

>> i've got to get your thoughts on gamestop we are seeing that stock lower at the moment, extending losses but it is up more than 1000% in the last fortnight. a lot of people have talked about this as destabilizing the trade establishment, david versus goliath, the army of retail against the old boys on wall street, is this an existential point for prude -- professional traders? jeff: i think it is a realization that there is a new normal around. i am not saying gamestop is normal, but the financial markets and in particular stock markets have been democratized. retail and business now have the same access to those markets and can make the same decisions as professional investors. there is an awful lot of them and the sheer volume weight of numbers has become a force in the markets that professional investors and fund managers now

have to figure into their calculations. a lot of the rally from mid march 2020 lows has been powered by retail investors and they are not just eyeing stocks, they are doing it i the options market. i think the pressure point is in the options market, not necessarily in the democratization of stock trading. gamestop, is another case where the regulators will probably have to look at it. you could also make the argument that someone is making a market in all those options that they are buying and the market is working efficiently. you can cut this cake two ways at the moment. shery: we have seen a surge of retail investors in asia, but can you have in asia a gamestop or an amc? especially in heavily regulated countries were even shortselling is banded at times.

jeff: i do not see this happening in europe or asia, the regulatory environments there are much less freewheeling than they are -- then they are in the united states. the state is a much bigger market and it has the liquidity and participation and that freedom of movement shall we say. i do not see this being repeated in other parts of the world, this is very much a u.s. problem at the moment when we talk about movements such as gamestop. we are seeing a trend where retail investors are becoming an important force in the retail market -- international markets around asia. if you look at china, south korea is a prime example, singapore has always been very active and this is a trend that will continue. shery: the movement we are seeing today especially the downside pressure you are

attributing to -- we wanted to see more from chair powell, what happens in asia when you're seeing some countries and monetary policy makers take steps to -- that may signal tightening in the near future sooner than in the u.s.? jeff: i think asia is not too bad a place with regards to -- obviously regional currencies have a high beat on what is happening in u.s. monetary policy. chairman powell has signaled that it is not a competent -- conversation they are having at the moment. i'm not expecting a huge wash out in asian currencies because of this, but we may see a short-term correction. basically the whole world spent most of 2020 stalling u.s. dollars, it is a very crowded trade. if we saw a 10% pullback from

the recent gains, that would not concern me and really would not bother me too much in the u.s. dollar. at the end of the day, the federal reserve would almost -- well, they will keep rates at 0% for effectively all of 2021. the u.s. government will issue galactic amounts of new debt and that will weaken the u.s. dollar, so i am looking at this as a long overdue correction. shery: it was great talking to you, thank you. let's now get to karina mitchell. karina: coronavirus infection seem to be easing in the u.s. with new york governor andrew cuomo lifting restrictions. elsewhere the european union is in dispute with astrazeneca over vaccine supplies, putting the drug maker on a collision course with brussels. france is delaying a decision on

a third national lockdown as cases rise. meanwhile the u.k. government is morning it's locked and will continue for at least another six weeks. there are new border quarantine rose in effect. boris johnson says the measures are being reviewed but will not be eased until march at the earliest. people arriving in the u.k. are now subject to 10 day quarantine isolation. trouble in china is slowing as people are urged to avoid journeys amid rising virus cases. numbers are already 27 -- 20% below levels from a year ago. rush hour congestion is below typical 2019 levels for a second week in a row according to data. this may affect china's oil demand. the international olympic committee is increasingly confident that tokyo games will go ahead in july with a soulful -- so-called safety playbook nearing completion. they say measures at sports

events around the world indicate the gains will be possible. he says the intention is to hold such events, not cancel them. japan has spent about six dollars preparing for the tokyo games -- $26 billion preparing. 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: still ahead, following the gamestop franzen, a huge day with earnings. apple, tesla, and samsung all leading the way. apple's revenue topping the 100 lynn dollar mark but it shares a cautious outlook -- 100 billion dollar mark. we will break on all the key number is you need to know, this is bloomberg.

>> samsung shares opened lower after disappointing results consolidated net profit for the fourth quarter missing estimates

and the outlook also appearing week. bloomberg's asia tech executive editor joins us now, so first quarter earnings also expected to decline according to samsung on weaker dollar and cost as well, what stood out to you? >> it was a little bit of a surprise as samsung reported these numbers, the net income numbers as you said came in below estimates. they still made about 6 trillion one or $6 billion but it was really the semiconductor business that hit them. samsung is known as a smartphone maker of course and it does compete with apple at the high-end, but they make more of their money from elling chips to other companies -- selling chiefs to other companies. prices have not recovered as much as anticipated and demand has been soft in that sector, samsung does say they anticipate

a recovery in the second half of the year. haidi: what about the dividend plan? peter: this was very closely watched and anticipated. the patriarch of the founding family passed away and that family is looking at paying some very heavy inheritance taxes. there is an anticipation that samsung would increase its dividends in part to put cash in the hands of the family so they could manage some of these hefty taxes. in the past, samsung has said it would return about 50% of its free cash flow to investors. in fact, they kept that level the same, they set for the next three years they were target about 50% of free cash flow. dividends go up because profits are heavier but that was a bit of a surprise on the negative side. haidi: peter elstrom there with

those handsome -- samsung numbers. let's check in on some key apple suppliers after those earnings came through. apple hitting the milestone when it comes to earnings release, but releasing a cautious outlook. we saw apple falling and the major asian suppliers are feeling the pressure. innotech is off by almost 4% and hynek next down by 2.5%. let's get the latest from our tech reporter. on the balance of things we are seeing the downside reaction when it comes to apple stock as well as the associated stocks here. >> the investors do not care about what happened three months ago, they care about what is happening now and that record quarter was the end of december. the focus is now on q2 and the apple ceo did not give guidance

for the current quarter. he did say they would see a deceleration with air pods as well as the services segment and that could impact business as well. he did not mention. you will see -- that could mean you will see a decline or growth at a slow rate, unclear, but clearly they are not shouting from the rooftops about how optimistic they are. i think it is still too early to tell what it will look like in totality given that we are only at the end of january. shery: what could be the bright spots going forward for apple then? mark: i think the iphone will continue to be a bright spot especially in the current quarter. the iphone 12 line really only completed its launch at the end of november which means you have only a month of true overall sales. i think that will continue as more 5g networks proliferate across the u.s. and asia.

haidi: let's listen to what tim cook to say when it comes to the response to the new iphone 12 series. >> the customer response to the new iphone 12 model is unprecedented -- models unprecedented innovation from cameras to the growing potential of 5g has been enthusiastic, even in light of the ongoing covid impact in retail locations. haidi: are we talking about a new cycle here? mark: i think so, given what we have seen now. he did not use the super cycle buzzword but he defined it. he said the amount of rates they have had in this past order is the most they have ever had for a new set of iphones. i guess that is what the super cycle means, if this is the best they have ever done, how much more super can you get?

shery: our tech reporter there, you can get a roundup of the stories you need to get your day going in today's edition of " daybreak". you can customize your settings so you get the news on the industries and assets you care about. coming up next how china is shaking up the world's largest tech market, cracking down on what it sees as a reckless push by tech firms into finance. 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.

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submitted filings to become a holding company. they now say it will be subject to more stringent capital rules and there is pressure from beijing to fall in line with regulations. our chief north asian correspondent stephen engle is here with the latest.

what are we expecting in terms of what the end result could look like for aunt -- ant after going through all of this and also the timeline? >> i think authorities are trying to prevent what they say is the regulatory arbitrage on the part of technology companies whether it is alibaba or tencent or others, as they move into a financial services. obviously they have, it is their biggest source of revenues which -- some 258 billion dollars worth of outstanding loans on their two lending platform's as of june, so they want to bridge that gap where there is regulatory oversight on financial services. the banks have to have the capital requirements and the like, but the technology company was allowed to grow at breakneck

pace and as those companies have moved into financial services, they have not been under the same regulatory framework. they are trying to narrow that gap and have for -- more oversight of these sprawling conglomerates. dow jones is the latest report on this. bloomberg had a story a couple of weeks ago as well as the nikkei about the possible plans of putting all of the assets into a financial holding company which the dow jones is now reporting. the latest step would be than the pboc would have basically oversight of that financial holding company. they are saying this plan has been submitted by and/alibaba to authorities for review. we deftly know the authorities are looking at a financial holding company for ant, that they want them to return its main business to payments because lending has become the biggest revenue gender now. they want to maintain core

business as payment and on those lending's, they want the capital buffers and requirements to come up in refine ash line with financial institutions as well as improve corporate governance and discipline at these lending units. haidi: it is not just lending units and not just them as being the biggest player, it is expected to go into every quarter of tech in china? stephen: we are hearing the three financial watchdogs all talk about the rest -- reckless growth into finance. we know over the last half decade or so the push to crackdown on shadow financing as well as the risk in peer-to-peer financing and the fraud that has crept up in them. there are something like 7000 different micro lenders in china. this is a big crackdown on

monopolistic behavior, but on the risk side, these 7000 different micro lenders are also not playing by the same big of a tory playbook as the banks, so that regulatory arbitrage term comes into play. that will affect competition, there should be shake out in those micro lenders, but these are not just giving out loans, they are also in wealth management. there is a credit scoring system that needs be overhauled, there are payments that have already come out with some draft rules on the end of monopolistic stance for payments which has dominated more than 90% of the payments. of course peer-to-peer lending will come into more regulatory scrutiny and crackdown. haidi: stephen engle there with the latest, let's get you the latest headlines this hour.

-- raised hundred $70 million in the sale of five-year convertible bonds. the offering has a 2.75% -- it -- and is at the high-end of the range. they arrange the deal which is larger than the airline had originally planned. cafe says the funds will be used for settlements. hong kong is speaking about $1.5 billion in a second bond offering in two months. we are told they have lost the investor calls to the plan and the sale may be announced officially later on monday. it would consist of 10 and 30 year tranches. they last cut the bond in december. boeing closed its worst year ever financially by losing more than $8 billion in the december quarter amid the cap -- collapse of travel demand and the troubles with the 7:27's.

most of the fourth quarter loss is actually a pretax charge of 6.5 billion dollars of the 777x. shery: here is how markets are looking across asia, we are seeing the nikkei seeing its worst day since july, real estate and communication stocks leading the decline, do watch for those apple and tesla suppliers, the kospi also losing more than 2% for its third session of losses. samsung we are seeing losses of 2%, a three week low after disappointing on their fourth-quarter consolidated earnings. the asx 200 seeing -- is read across the board with kiwi stocks also losing more than 1.5% of course following wall street lowered that saw the most losses since october. comip next the fed says it is too early to discuss asset purchases, we -- we recap

highlight from jay powell's speech next. plus domestic and -- don't miss an interview with hitachi. this is bloomberg. ♪

>> the economy is a long way from our employment and inflation goals and it is likely to take some time for substantial further progress to be achieved. overall our interest rate and balance sheet tools are providing powerful support to the economy and will continue to do so. haidi: jay powell they're speaking after the fed left it policy settings unchanged. let's get more on the direction from kathleen hays. too early to exit seems to be the new mantra, was the messaging dovish enough for what wall street wanted to hear? kathleen: the fed is already

really dovish and jay powell just reinforced the fact they are going to stay that way. coming into the meeting, some thought's are actually improved enough, higher stocks, maybe he will give us a signal, but down the road, no. if anything, jay powell repeated what he has been saying, it is way too early to go there. >> in terms of tapering, it is premature, we just rated the guidance. we want to see substantial further progress toward our goals before we modify our asset purchase guidance. it is just too early to be talking about dates. kathleen: of course you just ran that clip where he pointed out why they are doing this, why it is so important to reach high inflation and maximum employment and he said the economy has moderated. we see jobless claims rising again, sales faltering, millions

still unemployed. the fed job is not done yet. he knows that job losses have been concentrated in sectors where there is person-to-person contact like restaurants, like hotels. the fed cannot do much about that but that is when he goes on to talk about vaccines and what the virus is doing. the rollout has been bumpy he said, but the more people get inoculated, it will make the economy better. he said the most important thing to the economy right now, people getting vaccinated. if you think about it, over the last almost a year now of being hit by the virus and lockdowns, fed officials have been paying -- saying we are watching so many things but it is all about the virus, what the vaccines are doing. and in the meantime, we cannot risk upsetting the economy that is still week by pulling back. shery: of course he was asked

many times if that will cause a big inflation acceleration, given all the volatility we are seeing but he did not sound worry -- worried, did he? kathleen: certainly not, he reminded us we want to inflation, we are worried about the fact the global economy has been distant fighting did it is much easier to pull inflation down vantiv push it up -- then to push it up. when it comes to equity bubbles similarly, he basically said he does not the a direct correlation between monetary policy and what the equity market is doing. he said in the past few months market has been moving more on fiscal policy headlines, on vaccine headlines. and there are tools to deal with the stock market if needed, but we are not at that point. in terms of financial stability they are moderate, ask about gamestop, no surprise, he said he would not comment.

one thing people have not been following closely is that so much of them are looking at inequality, racial or -- racial inequality, gender inequality. he was -- was asked a question about whether it was a big part of his possible -- puzzle and he said he strongly agrees that ending inequality, getting more people in the labor market, getting higher productivity, that will fuel the economy and you will not -- you will be able to achieve maximum limit and prosperity for everybody. haidi: kathleen hays there and let's take a look at china now, the bank of america ceo says mainland banks are -- powerful companies should be feared. they spoke about that and how the company has been dealing with the challenges of covid. >> we are not worried about eating big, they are big. they are already very sizable

and the market in some ways is much more consolidated in the hands of the 4-5 major banks. if you look at the top 10 earning banks, jp and ourselves would be there and quickly it is all chinese eggs -- banks. they are powerful, strong companies that have the right to opt -- operate in the united states and other countries. i do not know when they will decide, but if they decide to come out that country -- out of that country, they are big companies and they are owned 50% having 60% i the government did we all have to be fearful of them, we have a stake in one. for a long time we help them improve operations based on modern things and they took it and took off with it and did a great job. we all have a right to be fearful but not because of them getting big, because they are big.

>> right from the beginning you said everybody will keep their job and will -- would actually give more money to help them, how has that rubbed up against what has long been a for you which is to have cost control? is it hard? >> our cost because of covid because of net covid cost. what are those costs for? they are for taking care of teammates, the childcare for example. what we realized last year when schools shut down and we were asking people to work from home, this was going to be something that did not work. we said to our teammates, if you have kids, and 40,000 of our teammates do, if you have kids and want to hire somebody, here's a hundred dollars. that has happened three and a

quarter million times so far. as the world went on, we brought it down because we figured people figured out their life, but -- those are the kinds of expenses that will go out./ \they have stayed elevated becaus ppp, we have 10,000 people working because they cut changing things. this time it is more automated thank god. when you close the branches, you have -- the call center volumes went up, we have said, customer centered, client-centered, do not worry about the costs. as the vaccine gets in and the world normalizes, then you expect cost to come down. it was all the word -- it was all worth it, all the right thing to do. we have been on a five-year move to go from 15-20 dollars an hour and we finally went ahead and

did it. we can manage the had cut down over time, but the key was to stabilize everybody. you have a job, you can work from home, here's the equipment. and we ended this year at all-time high favorability for our customers. shery: bank of america and ceo speaking to david westin. we are now hearing that billionaire had fund -- hedge fund manager capital partners has lost about 20% this month, of course they were one of last year's top performing hedge funds. it lost about 20% of this month making it one of the biggest victims to emerge from our retail investors. earlier we have seen: for 72 losing about 15% with those hedge fund losses.

apple capital managed about $20 billion at the beginning of this year began far more than rivals that were heavily invested in gamestop./ we shall the -- we saw the short squeeze in gamestop rally. short squeeze with this retail trader led rally. let's take a look at some companies across asia we are watching because we had some more earnings, samsung disappointing so we are watching the stock very closely with the fourth quarter consolidated net disappointing slightly coming below consensus. some of the suppliers of apple also we are watching because they actually reported revenue top -- that's topped $100 billion for the first time. we are also watching some companies in south korea because

they supply to tesla and tesla disappointing consensus as well. watch out for the stocks in that sector. coming up, tesla shares tumbled after disappointing results, we braked down the numbers. this is bloomberg. ♪

karina: i'm karina mitchell with the first word headlines,

they are boosting -- almost half of virus cases top one million and mass vaccination plan struggle for traction. the recovery budget is now $39 billion, 49% higher than previously. and may be extended even further. finance minister told parliament the government will keep the deficit within it target of 5.7%. vietnam is planning to relinquish most date control on the economy and a drive for greater growth. the delegates at the communist party are expected to approve a five-year plan that calls for the private sector to account for more than half of the economy by 2025 and two almost double per capita gdp. the government is forecasting growth of up to 6.5%. the indian government looks set for renewed -- with farm groups despite new clashes in new

delhi. farmers continue their protest against new laws they say will make family-owned operations unviable. video evidence of the violence is being examined global news 24 hours a day on air and on a bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. shery: tesla straight after posting mixed results, profit came in lower than expected in the last order as revenue was at a record. let's go through the numbers with ed ludlow. give us some of the top lines especially those related china. >> there is disappointment because tesla did not say outright delivery objectives for 2000 when he won, it said it would grow deliveries at a rate of 50% annually. based on last years numbers, we can expect that to be greater than 750,000.

the street was disappointed, it wanted to see a figure can -- and consensus, what we know is that the margin was down 5.4% in part because of aggressive price cuts in china. there is a competitive and more competitive market in china than there is than the -- there is in the euro -- u.s. and in europe. that meant big payouts for ceo elon musk of which wait on them financially as well. free cash flow better than expected, cash on hand very strong and the narrative continues to be around growth bringing the new factory online in austin, texas, the new factory in berlin, germany and expanding production in shanghai. haidi: what is the balance between buying more cells from suppliers and producing their own? >> elon musk said basically the biggest issue for ev makers who

want to grow and bring new models is the supply constraint on battery cells. we know that tesla is working on its own battery cells, but elon musk says it will continue to grow the number of cells it wants to buy from its suppliers which includes panasonic, lg, and catl. elon musk says he does not see that changing. haidi: ed ludlow there. indian tycoon -- an indian tycoon is betting the country's economy will soon bounce back. his group has market capital of what he $6 billion with interest on metals to communications did he told bloomberg which of his businesses have the biggest growth potential. >> financial services is one such business. fashion retail is another one,

metals although from the real economy are still very strong. going to be very strong growth drivers. we are looking into growing these businesses by and large. growth can come from various roots, it can be acquisitive and we always are -- ask ourselves what is the most value for our stakeholders? that is the question we ask and we choose a particular route. >> not surprising that your digital business has emerged as a driver in the pandemic. what might your plans before that for your digital operations in the next 12 months? >> i think it is about recognizing the fact that digitization is a huge trend for business not just in india but across the world, i think each of our businesses has made a very concerted effort to up the

game in the business which connects with the customers. that has been a huge area of focus from back end of course, but i think in this pandemic we have come much closer to our customers and that has been in part due to the accelerated efforts of digitization which each of our companies has made great progress on. >> i want to turn your attention to the indian economy, there is optimism it will rebound from one of its worst recession in the country's history. how confident are you? do you share the optimism reflected by the government? >> we are looking at positive growth in the second half of the current fiscal and a near double-digit growth next year. several factors that have gone in favor of the economy coming

back so sharply is the central government's stance, we have had a lot of stimulus from the government amounting to about 1.5% of gdp and major reforms like flexibility in labor laws, privatization of enterprises. i think that it has been a very sharp recovery. a huge surprise for all of us, we did not know what to expect and i think an economy like india which has been growing has momentum of its own besides all of this. >> taking it a step farther, your outlook for the global economy going into the new year, those optimism's that thing will -- things will go back to normal by summer. we are seeing rising infections still, and uneven rollout of the vaccine, what is your assessment of where the global economy is

headed? >> you have some economies like the u.s., europe, japan where i think the economy is unlikely to recover to pre-pandemic levels this year. you have our economy which is the indian economy and others which are emerging. we have been lucky to end this year above pre-pandemic levels and than you have a standout in china which is racing ahead. this could be the year where china's gdp actually surpasses that of the eu. i think that with threats of uncertainty around the third and fourth -- versions of the virus, we will see some uncertainty and volatility in financial markets. i think monetary policy and

fiscal policies will continue to be supporting growth. i expect interest rates to remain low globally and i think the one thing i would watch out for is a growing deficit in relation to the gdp of almost 15%-20% in most developed economies. that is something i would watch out for. >> our chairman speaking exclusively to our colleague. coming up next a mind-boggling frenzy over gamestop continues of course we saw the fivefold rally in three days as an alert on the bloomberg right now, gamestop's website appears to be down and the driver of that rally in the gamestop stock, read its wall street bets form appears to be operational again.

it has reopened after going private. we will discuss all of this including a videogame retailer in japan now looking like a bargain, we will have the details next. this is bloomberg. ♪

>> this was a very risky store to begin with. >> i would character the market as a bubble. >> this is flipping houses from

2005 onto steroids in 2021. >> if you go skating on thin ice, do not be surprised when you fall in. >> we track changes in chatter, we think there is something unusual or even worse, nefarious going on. we will contact the company and make sure there is no news, our economic team including -- others are monitoring the situation. >> i expect the regulators will respond to this after the fact, it will come well after the crowd has dispersed. shery: fund managers sounding the alarm on the gamestop phenomenon, the frenzy over the stock has seen share price emerge from fundamentals in the rally making one of its peers in japan, seem like a huge bargain. let's cross to our news editor in tokyo. tokyo a bit of a different beast when it comes to brick-and-mortar. we are talking about a country

that still goes to libraries and buys magazines and buys cds. tell us about geo holdings right now. >> first i have to point out even though it is spelled like that it is pronounced differently. japan still has a love for physical media, those kind of things move slower here than they do in some other countries. i think the number one thing this shows you on top of all of that is it is a prime example of what we have been talking about for a couple of years with japan and where they are compared to other countries. geo itself is a bit like a combination may be of gamestop and lackluster which i've asked blockbuster which i think still exists. they do game sales, they do

trade-ins, they sell secondhand games and also do movie rental which is still a thing. i think blockbuster may be has one store around in the u.s., but movie rental is still a thing although it is declining here in japan. haidi: so what other opportunities do you potentially see when you take a look at these fundamentals? what is the growth prospects for this company? >> across to paren -- across japan, fundamentals look pretty good and valuations still look pretty cheap. i am not here to push one stock or recommend what people should buy, but as i say it is an example of the fact that the fundamentals in japan remain. but this gamestop to racy in the u.s., so much of the market is coming completely disconnected

from any kind of fundamental valuation which makes deciding what -- four investing makes deciding what to buy extreme a difficult because you have no idea what to do whereas over here in japan, things are still a bit what they used to be, it is a lot harder to short individual stocks in japan. there is not a market for -- there is, but there is not a popular market for options on individual stocks. investors looking -- longing for the old days before wall street bets come along, they might take a look at the opportunity in japan. haidi: coming up in the next hour, more from the global macro conference, the chief equity strategist joins us at the top of the next hour as markets

digest the ongoing gamestop frenzy, reversing some of those heavy gains in the after our session. that stock is still up over 1000% over the past two weeks and hedge funds set -- hedge funds suffering. market coverages next, this is bloomberg. ♪

♪ >> 9:00 in beijing and shanghai. welcome to bloomberg markets the china open. i'm tom mackenzie. >> we are counting down to the start of trade in the chinese mainland. let's get to your top stories today. stocks extending declines from wall street overnight. big tech weighing on these markets. facebook, tesla disappointing with earnings.