haidi: good morning, i am haidi stroud-watts in sydney. we are counting down to asia's major market open. shery: i'm shery ahn in new york. welcome. asia is set for gains after wall street bounces back, moving to speculation. and the gamestop frenzy goes global, shining a light on daytrading apps.

we will hear from the founder of wall street bets. and a tug-of-war with the u.s. and china. janet yellen says the bank is a fundamental part of the business landscape. >> it's very strong in hong kong and has been a very important part of our financial culture, so course i would love to see a stronger presence of the bank in hong kong. haidi: breaking news out of south korea. we are getting december industrial numbers, beating estimates, surging 3.4% year on year. this is after expectations of a contraction of .6%. the month-to-month number is also positive, 3.7% growth. the estimate was less than 1% growth. a cyclical leading index leading, month on month.

of course, we have seen external demand remaining resilient, despite the wave of coronavirus cases around the world. we had sk -- for the fourth quarter, coming in beating estimates. -- sk hynix for the fourth quarter, coming in beating estimates. we will bring you more in the next half hour. haidi: let's take a look at the sydney open. a pretty bad day in the thursday session, down about 2%. that is the biggest decline since september last year. we have a modest rebound now, 3/10 of 1% higher in the first few minutes of the staggered open for the friday session. we will continue to watch the big miners, as we see retreating iron ore prices play out. we also watched price action in the heavily shorted stocks yesterday. we will see. the dollar trading lower,

despite the retreat more broadly against the u.s. dollar and g10 basket overnight. kiwi stocks are up by 1.3%. we appear to see inflation coming back sooner than expected in new zealand, with most of the big banks onboard, saying the midpoint will happen by june. that's earlier than expectations of that not happening until the third quarter 2023. let's remind you of how we finished the session. s&p futures with negativity, continuing despite the rebound we sign the overnight session on wall street. nikkei futures also moving back to negative territory. dollar-yen, 1.04, we did see weakness in much of the asian session, holding most of those losses. crude prices are also softer at the moment, just over $52 a

barrel. shery: the frenzy is just a sideshow, if you ask some people. jay pelosky joins us now from new york, the founder of tpw advisory. how is this a sideshow? many people are saying the exam is lasting and bringing to light other fundamental issues, or do you see more fundamental opportunities? jay: i am in the latter category. for me, the real story is the broad market's, but the u.s. and globally, have successfully worked off two overbought conditions. the first was over the fall, when big tech worked off an overextended, overbought condition, which allowed for the cyclical and value segments of the markets in the non-us equity markets to take equity leadership, which we saw open

till the last several weeks. when, in turn, big cap tech started to move, anticipating the earnings results we had seen in the cyclical and value, in bitcoin, crypto, clean energy and climate stocks, all pulling back significantly. so, the talk of a bubble for me is actually stale. i will give you numbers. the gray scale trust for bitcoin is 40% off of its recent high. between energy itf -- is 15% off its recent high. the china trade vehicle manufacturer ne-yo is 12% its recent high. yes, the gamestop is interesting and it is grabbing headlines, maybe hedge funds got her over it, that's terrible. everybody feels better for the hedge funds, right?

but to me, the much bigger story is the market has successfully worked off overbought conditions and is now positioned to be higher over the coming months. shery: you can say what you will about hedge funds, but they short companies for a reason, they are there for a reason. if you do not read a balance sheet and you are fighting the short-sellers, are you distorting the valuations of these companies that should not look as good as they do now, after what we have seen with the gamestop, and a number of other stocks, and into commodities. even silver? jay: one could be concerned, but to me these are tiny stocks. they are nonrepresentative of the broader market or broader sectors. maybe i am more of an etf based

investor, so i do not focus on individual stocks. and i do not really trade in the options of space, so it doesn't affect me that much. to me, i am much more focused on what an activist government in the u.s. means after 40 years, efforts district the government -- efforts to shrink the government and u.s. i think will have other implications for u.s. investors, and global investors, than what happens to gamestop. to me, it is like rotating kind of flash mobs of interest. you had it in bitcoin, then climate stocks, now to smaller stuff, even less significant things. ultimately, the issue is, where are we heading economically speaking, where are we heading in terms of earnings, where we headed in terms of asset allocations? that is where i spend the bulk

of my time. shery: you mentioned etf's as well. we saw the warning from citibank, saying given the gains in gamestop, we could see changes when it comes to etf's and their compositions, that the rally has increased to prominence, rt wj, u.s. as well. are there more fundamental issues in having some of these huge volatile stocks, not only gme, but also amc and even american airlines at some point? jay: those are still actually very small stocks. they are big companies that fly planes, but american airlines is a relatively small stock, where it is today. i own jet. think about american airlines as a stock.

jet is all american airlines, you put them all in one basket, that is the joy of etf's. i have been watching the action there closely. because i think that we are getting closer to the true reopening trade as vaccinations accelerate in the u.s., and we potentially get good news from johnson & johnson and its efficacy and its vaccine in the next couple weeks, i think things -- i think the airline stocks will move materially higher. not because of options, retail traders playing in the options of space, but because we will have a reopening of the global economy. people are going to travel, and the airline stocks, which are depressed, will zoom for good reasons -- for economic earnings potential reasons. when i look at the action in those stocks in the last couple days, i'm hardened.

because you had a big pullback yesterday, and it did not even make the headlines. to me, that is great. the airline stocks when down yesterday and were up significantly more than the market today. that tells me that people are starting to accumulate those reopening stocks again, because we are getting closer. yesterday's opportunity in selloff, because of gamestop, was an opportunity for fundamental investors to start to continue the repositioning into the cyclical and value stocks, which is now no longer overbought, as it was two or three weeks ago. haidi: do you worry about regulatory scrutiny, given the moves we have seen? jay: no. shery: because it would take more time? anything coming from congress?

jay: do not need to be swift, but there are other things to focus on, as an investor and advisor. i do not spend time thinking about that. if there's is anything coming out of congress, it will take forever and the markets will be on to other things down the road and between now and then. just as the whole issue with u.s. sanctions on chinese companies have done nothing to stop the appreciation of chinese equity. in fact, chinese equity has been the best performing region over 2020 and the first month of 2021, in the face of these sanctions. the markets do not care about that, because it is not really -- it is more show, it is more headline than actual risk. haidi: it is always great to have you with us, jay pelosky.

let's take a look at the stocks we are watching. these are the heavily shorted stocks, also some big out performers in the previous session. we are looking at web jet, the airline travel booking agency, still up by 2.7%. tasso group is lower by 3/10 of 1%. the funeral services provider, invoke heck of a hanging onto gains, to tents of 1%. -- 2/10 of 1%. and we will continue to watch that. let's get you to karina mitchell with first word headlines. karina: a shortage of vaccines. infections are above 101 million now, with more than 2 million recorded deaths from coronavirus. 85 million people have now been vaccinated around the world. the european union is going to tighten their rules on the

export of vaccines. in a fight with astrazeneca over access. the imf says the pandemic has added $20 trillion to global debt. meanwhile, -- has reopened its border with new south wales. all residents can return home and 1 after quarantine. -- home and will not have to quarantine. they are not urging people to travel. new south wales have gone of the videos without a local infection. over the thailand, it is cutting its economic forecast for the over the rising covid infections and the need for more stimulus. 2.8% reductions from 4.5% in october, following recent warnings of threats. they have set their own forecast, and say it may have to be lowered, while the imf lowered their expectations of growth this year. 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. shery: thank you. still ahead, we will talk to the founder of wallstreetbets, which has gained millions of followers. rogozinski will be here. but first, the scoop on robinhood as the app is said to tap hundreds of millions of dollars in bank credits. this is been very. -- is

shery: robinhood, the trading app behind the wildest stock swings this month has drawn down credit lines with banks, adding to signs that the recent market is putting a strain on the company, following announcements

it is restricting access to trading shares of gamestop and amc. we will go to our reporter for the details. the issue here is they wouldn't have drawn -- the speculation is they wouldn't have drawn on their credit lines if the really didn't have a problem, right? >> this is a very complicated question, because we have seen robinhood do this in the past. the cofounder took to twitter as well, trying to explain to clients that in general, right now, robinhood has a lot of financial requirements, including fcc net capital -- and there are a lot of reasons why they have drawn on their capital. they have strong financial needs at times like these, when it comes to margin, customer service. in addition to what the regulators require of them, which is not just a robinhood problem, but we know it is the

upstart, and when you have their rivals with much more diversified businesses, like e*trade for example, they are with morgan stanley, or as robinhood is on its own. haidi: what are we expecting from the senate banking committee in terms of their hearing into this and the implications of these trading apps? >> it is a great question. i have been thinking about this all day, because i have been watching the whole thing. so the time we really saw financial executives come to the senate finance committee was a year or so ago. this time around, we have known that the biden administration will be watching consumer protections, so there is no way they do not get a lot of questions, robinhood. if they decide to bring other brokerages there, on why they decided to curb trades -- the reality is, when they curb

trades, it is not that they are not acceptable to the rest of wall street. so did investors lose money? did they lose money unfairly? and was there any sense of any market manipulation going on? they will ask for all of their communications with other hedge funds and other larger clients as well. haidi: ok, thank you for the latest on a robinhood. we will be waiting to get more details on the senate hearing that will take place. you can get more information about robinhood on your terminals. this is bloomberg. ♪

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shery: hong kong chief executive carrie lam says the future is bright even amid reports that some operations are moving to tokyo.

she spoke with bloomberg about what the government is doing to get the economy back on track and to keep hong kong attractive as a global financial sector. carrie lam: lately, there have been some offices opening up elsewhere, but the money has not moved yet. so, i could understand that, because of political developments and also the violence and social unrest. it's natural for anybody with some assets to think of alternatives, right? that is what the situation is. but on a serious note, hong kong will continue to strengthen our competitiveness in order to attract more capital. >> this weekend, the u.k. will start taking applications from hong kong residents holding british passports. they suggested they are willing

to accept as many as, 2.9 million three quarters -- many as 2.9 million, three quartersof hong kong's population. carrie lam: they do not see how two point 9 million hong kong people would love to move -- 2.9 million hong kong people would love to move to the united kingdom. i respect people's choice, wherever they want to live and work and to raise a family, that is their choice. the important thing is to tell the people of hong kong that our future is bright, prospects are good, and now we have the national security law, so worries about street violence and social unrest has subsided significantly since last year. once the pandemic is over, i am sure that our economy will be back to its former footing. and with government support, we

will have far more opportunity. >> it is the national security law that perhaps is spooking residents. are you considering policies to discourage hundreds of thousands of hong kong residents from leaving the city? if it is not 2.9 people -- 2.9 million people, it could be hundreds of thousands. carrie lam: we have not seen that yet, but it is always the duty of our government to continue to make our city more practical and livable. >> what are you doing to that end? carrie lam: we have to build more houses, we have to make property more affordable and we have to improve our education. we have to improve our air quality. >> i think the basis of it is what they have seen, and lawmakers that you have worked with have been arrested,

something like 55, mostly for attending unauthorized peaceful demonstrations, for even attempting to hold a primary for elections. is there room for political opposition in hong kong? carrie lam: as on as we do not cross the red line, you do not undermine sovereignty in the country's interest. we welcome a diverse opinion. people with different political backgrounds want to argue, but the government needs to protect the red line. that is what we are doing with a national security law. coming back to these arrests, we are not arresting people because of their political affiliation. the police are investigating and arresting suspects who have breached the laws of hong kong, based on evidence. >> have you decided whether to seek a second term? carrie lam: i am not answering that question. >> what challenges are facing

the next chief executive? carrie lam: never mind the next chief executive, the next acting months -- 18 months will be challenging. i need to deal with the pandemic and stimulate the economy. >> what about the economy? carrie lam: the hong kong economy in 2021, i see good prospects, subject of course to the pandemic. if the pandemic could be controlled, i feel like we have a very good chance to not only have a possible recovery, but encouraging possible growth. >> that was carrie lam speaking to bloomberg. we do have more key interviews coming up. we will talk with ronnie chan, joining us exclusively to talk about his company's latest

results and outlook for the property sector. and an interview later with the president and ceo of -- holdings. an apple supplier tripled earnings this last quarter. they have easily be in the average estimate of 828 million. revenue has climbed 15% to just over $7 billion. i find has pushed apple to the top spot in the global smartphone market. catalyst -- analysts estimate that they did 82 million last quarter. mike's office has it detected cyberattacks that can be traced back to north korea. it says the people behind the campaign are linked to - -and enjoy state backing for mall

where and account affiliations. up next to a chat with the founder of the international justice lab. this is bloomberg. ♪

haidi: breaking news out of japan. we are getting the tokyo pmi numbers. a year on year contraction, a deceleration of 5%. smaller than expected. and also easing from the previous month, a signal of where national prices could be going from here, especially after the halt of those deeply discounted travel campaigns by the government, year on year. a deceleration of four point -- a .4% year on year. the jobless rate has fallen to

2.9%. this is the same level at which it was for the previous month of november. it's a little bit better than what estimates had been. we have seen this, another wave of a virus cases, really putting pressure on the services sector. but the job to applicant ratio is rising to 1.06, same level as the previous month and better than expectations. industrial production numbers, we will get those in 20 minutes, so we will bring those to you as well. jobless rates are falling a little bit. cbi year on year better than expected. take a look at the broader markets. the japanese yenn is holding at the 104 level -- yen is holding at the 104 level. we are seeing now the nikkei futures under -- or pointing

higher right now. we have seen the worst day since july for the nikkei. gains for kiwi stocks, their best day in a week. we have seen no wall street rebound -- seen the wall street rebound, stocks that have been volatile because of the retail trading frenzy. haidi: the ripple effect from the suite's trading frenzy -- from this week's trading frenzy . the government and companies themselves are being drawn in. we have with us jamie rogozinski, founder of wallstreetbets. it is great to have you with us. in terms of background, what made you are inspired you to set this up? what was your intention? has it grown beyond that? and what have you gone from wall

street bets? jaime: when i first started it, i was trying to get myself familiarized with high risk, high return trading, playing with stock options. there was an absence in the market for a community to discuss these things and learn. so i created a community out of it. did i expected to turn into this? absolutely not. it has gone past anything i could have imagined. it's quite impressive. shery: impressive. many people have criticisms, other people are supportive. i am wondering what has driven this phenomenon? i have heard it referred to as bros before flows. is it greed driving these retail investors, or is it something else? is it anger at the establishment? jaime: grade? -- greed?

everybody who invests, anyone who trades, they are all looking to make money. you can call that greed if you like, that is what everyone is there to do and if is no way around that. the fact that everybody takes a different approach toward this, it speaks to itself. you have the institutional investors that take a scholarly approach, value investing and whatnot. you have active traders that use different mechanisms to make money. they look at patterns, technical analysis. now you have a new phenomenon, that looks like meme stock trading, people get together to have a good time with it and they are on apologetic about why they are -- are unapologetic about why they are there. haidi: having seen this grow, do you feel like this is a newfound area of retail traders' power?

or is this just a short harm -- short-term phenomenon? jaime: it is the new normal. is this us versus them? i think that is kind of an unintended consequence. i think this whole thing started the way they always do, people trying to make money and they happened to stumble upon this trade. they got organized and they got into the same trade. because of the huge amount of volume, you saw what happened with the stock price. there's been this side narrative about the establishment, and i think that there is a lot of feelings left buried from occupy wall street that are resurfacing for people, but i think the original intention was to make money. and a kind of had a feel-good -- not even ending, but it is still

developing -- a development in the story on how to show folks -- i do not know how it will go, but it is here to stay. haidi: what about the brokerages that had help in leading to the trading frenzy, now restricting the trading? jaime:jaime: i want to know the back story of it. that's the topic of the day. when it comes to certain brokers doing this, td ameritrade, brokers like that in that category, it make sense, but the fact that robinhood did this, it smells like they were pressured. it makes no sense. the history of them, they have gone through growing pains, but they have a well-established demographic and they are not afraid of these controversial news stories. this is not the first time. maybe of this magnitude, but i

doubt they woke up this morning and said, i feel like restricting trade. i want to know the back story because -- before i can dig into my opinion. haidi: when you look at the level of coordination in some of these forums, does it look like market manipulation to you? jaime: first off, i am not an expert, but market manipulation, from what i have seen and read about, it has a very narrow definition. market manipulation, all these potential regulatory conflicts at have been brought up, they are very specific. this doesn't fully fit. from my understanding, if you are doing market manipulation, you are misleading people. i have not read all of the comments, but the majority of them seem to say, let's buy the stock because it is going up. they are not hiding the fact of what they are doing.

they know it will turn back around at some point. and they will probably switch their bets to shorts, which is what they would do. and we will see how that goes. at the end of the day, yeah. shery: we continue to see the underbelly of this, right? whether it is hate speech or racist remarks in the sub-reddit as well. does there need to be more housekeeping or does that go against the spirit of what these online forums are, you can express yourself from the beginning? jaime: there is a fine line between freedom of speech and hate speech. i they believe there does need to be housekeeping. i was a moderator throughout the entire thing, up until april of last year. another reason why it was

removed as a moderator is because i decided to take action toward the hate speech. i ignored it a little bit, but it kept getting out of hand and got rid of a chat room associated with it. there were offensive images being placed on the logos. and what i tried to do -- some moderators took action against me and they managed to convince reddit that i was breaking terms. they succeeded at that. but watching this from the sidelines, this absolutely needs to happen. the chat room, where they also talk about these things, they decided to cancel the server. they got rid of it, for the same reason, so i absolutely think it needs to happen. haidi: thank you. it was great having you views. that is the founder of wallstreetbets. do not miss an interview with the cofounder of robinhood

coming up in the next hour. next, our weekly equality series. we are examining racism in u.s. foreign policy with the director of the international justice lab. this is bloomberg. ♪

>> astrazeneca underscoring the

fragility of vaccine access around the world. a professor says it is exposing the inequality between countries. >> the haves versus the have-nots in this circumstance, where many countries have preordered massively large schedules of vaccines, and companies have now struggled around the world to deliver on those promises. i think that what we need to recognize is that everyone needs the vaccine and governments are under extreme amounts of pressure to deliver on promises. it looks like we are having questions in the u.s. about the defense production act, for example, and debates as to whether or not that will ramp up manufacturing. it does not appear to be the case. so everyone is going to him how can we get more shots as quickly as possible? >> where are we in the u.s., if

you look at state-by-state will we see a much more cohesive approach coming from the federal government? jason: i think there have been promises about the federalization of the response, certainly increased amounts of the vaccine going to states. the potential use of national guard at the state level, fema has certainly been activated. i the each step in the process of the chain of supply and distribution and administration are going to be essential in ramping up the vaccine, but states can only go as fast as the supply that they receive. >> what's the state of the u.s. now? do people want to get vaccinated? do you have enough doses? jason: we do not have enough doses for the entire population. in terms of who wants to be vaccinated, we are already seeing disparities emerge. our hardest hit communities are

communities of color, yet the majority of vaccines are going to caucasians. so we are really seeing this disparity that has emerged. that is driven in multitudes by but the access points to the vaccine, as well as the people who have been determined to receive the vaccine. the third point is we have a considerable amount of vaccine hesitancy, meaning that people actually are afraid of how quickly the vaccine was developed and basically want to wait and see how others respond to the vaccine before they stand in line. >> what is the one thing that we should change, if anything? in the u.k., it has been the politics of the government that you need the first dose, and we can delay giving the second dose? should the u.s. go the same way? jason: we have a window of opportunity between doses, it's

not you go beyond the 25 days and the vaccine is no longer effective. the problem with extending that gap is we have seen infections in the study between dose one and two. you add in the circulating strains in the u.k. that are concerning with the various variants, looking at south africa and brazil, the longer we wait between doses the more we have the potential for somebody getting exposed to a variant, and it puts pressure on that variant to evolve. it is about how quickly we can get both doses as quickly and appropriately timed as possible. >> if the developing world does not get vaccinated at the same time, does it multiply, the danger of new variants? jason: what we are seeing with the data out of the u.k. this week is not only is there greater transmissibility and

greater numbers of transmission equal to greater hospitalizations, but it allows more virus to grow and evolve. we need to figure out a way, at a global level, to stop the spread of the virus. otherwise as new variants pop up, it places the current vaccines at risk of the potential loss of their efficacy. >> johns hopkins university's jason farley speaking with francine lacqua. the johns hopkins public school of bloomberg health is supported by the founder of bloomberg lp. we have another on the bloomberg, gamestop is climbing more than 60% in post-market trading. it fell about 44% in regular trading. of course, we have seen $11 billion -- the 11th of the dollar dropped -- the $11 billion dropped earlier today. we have seen the retail driven

squeezes. and right now this is in aftermarket, gaining more than 60%. it was priced at $19 at the end of 2020. so incredible mo theck right now. let's get the karina mitchell. karina: the world health sent to china to investigate the coronavirus has come out from isolation. they were quarantined, but now they can research of the potential origins of the pandemic. however, their mission is politically charged, with china seeking to avoid blame for its response to the outbreak. a former official says it could take years to reach any conclusion. a report from beijing says chinese leaders may not set growth targets this year. they are concerned it could increase debt. reuters says that policymakers may signal a general goal by focusing on employment and other indicators. china is expected to target

inflation at around 3% this year. last year it was 3.5%, but above current cpi. then u.s. secretary of state -- the new u.s. equity of state says they will meet their obligations on the nuclear deal with iran, but only after tehran does it first. they say the prime minister she wants to resume its commitment. his comments came after iran said its recent enrichment of uranium has exceeded the islamic republic's initial goal. 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 boebert. -- bloomberg. shery: joe biden promising to revive u.s. leadership on the global scene, however our next guest says in order for him to do that, he must reconcile human rights issues at home. in our weekly segment of bloomberg equality, we are

considering racism in u.s. foreign policy. the founder of the international justice lab, kelebogile zvobgo, is with us. thanks for your time today. you have different pieces about racism in foreign policy. and race in general when it comes to forming policy, you have talked about anti-japanese sentiment really driving some of that policy development in u.s. engagement after world war ii. we can see tensions between the u.s. and china, and other nations as well, what does the administration need to consider as it forms its foreign policy? kelebogile: thank you for having me. i commend you and your team for having this important set of conversations. so, as i have written in foreign policy magazine, our foreign policy needs to begin here at home.

the last four years, the u.s. has abandoned many international institutions that it helped create. the u.s. has alienated important allies, as well as gravitating toward historical adversaries. and our human rights record is nowhere near where it should be, when we look at policies like the travel bans targeted at nationals, muslim majority nations and african nations. when you look at the crisis and humanitarian disasters, we have been closing off our borders to people who are coming to our shores for a better life and for safety. when all these things are happening, we are not at our best. we are perpetuating human rights abuses. so, for the biden administration to have a credible foreign policy, we have to look in and

address human rights issues at home, especially if we seek to be a champion of and diplomat for human rights on the world stage. shery: i guess the question is, does the u.s. really want to be a champion in the world stage? we have seen more isolationist tendencies coming from the u.s. administration, and perhaps exhaustion from the american public, when it comes to engagement abroad. how do you reconcile these issues? kelebogile: that is an astute observation. many americans have been looking in and there have been many isolationist policies in the recent years, but if you look at biden's campaign promises and calls to action from biden and the vice president, when they were candidates, they do want to get the u.s. back into international institutions, back into a leadership role, back

with a larger sphere of influence in promoting democratic values, including but not limited to human rights. haidi: what does a rethinking of rights and the implications it has with the international relations look like for the u.s.? what does it look like for --? is it the same as what you would recommend for corporations and hitting the diversity targets, the importance of having diverse employees in doing the job they do? kelebogile: yes, definitely. it's very important that we increase the presence and status and recognition of diverse individuals, not only in the international relations classroom, but also among international affairs professionals, whether that is in think tanks, policymaking bodies, etcetera, because the

more perspective you have, the more likely you are to come up with creative solutions to thorn y issues. we have actually been missing out and perhaps not producing the best policies we could, because different perspectives have been missing from the table. when you have policies like the global gag rule, that reflects a foreign policy and domestic policy, for example with women, or when you have leaders using expletives to describe the national of foreign nations that perhaps are less developed, you know, that is based in a racist orientation, looking outward, but also inward, and it lacks perspectives or a respect for diverse perspectives, if they are around the table in terms of how ideas are expressed and how

policies are developed and enacted. it is encouraging for me as a human rights scholar, to see such a diverse cabinet with the biden administration, not only in foreign policy arenas, but also in domestic policy arenas, that we will have greater representation of perspectives and ideas that will hopefully result in policies that reflect the u.s. and that reflect the nation's purported values around the world. shery: are you seeing the shift take place in academia as well? you pointed out so much of the scholarship, the scholarly research, the paradigms have been set by demographic -- by a demographic that is very much white and male? kelebogile: yes, we have definitely seen shifts,

especially over the last year. last summer, a professor at amherst, we came together to write an essay in foreign policy magazine called "why race matters in international relations," where we highlight the amazing work that has been done over the last several years and decades, that brings a critical perspective to international relations, that asks us to interrogate what security means, what cooperation means, what development means. so these conversations have entered the mainstream and we have been encouraged by the positive reception. the essay is required reading in over 80 academic institutions in two dozen countries around the world, and growing. it is smart for us as educators, who are training tomorrow's voters, nonprofit leaders, and advocates, to not take the given

concepts, like anarchy, and really to engage critical approaches, like feminist ire, and third world ire. these conversations have -- and it is on us to bring them into the classroom so that our students understand the field and that they participate in politics in positive ways. i also think it is important to consider how racial hierarchies are perpetuated in the classrooms and in international systems. and to really question whether things like civilization, are these inherent attributes or tropes being used to justify subjugation around the world. i see the conversation changing and shifting in academia and in policymaking. haidi: it has been great to have

you with us. lots more to come, including the trading in tokyo and seoul. this is bloomberg. ♪ ♪ ♪

shery: welcome to daybreak asia. in new york, i'm shery ahn. haidi: asia's major markets have just open for trade. asia set for gains after wall street bounces back -- moves to limit speculation in the retail investor revolt. the frenzy has shown a light on

daytrading, clamping down on transactions. we will speak live to the robin hood ceo this hour. and the hong kong leader and a tug-of-war with china. she says the bank is a fundamental part of the business landscape. >> hsbc is very strong in hong kong and is a very important part of our financial mission, so i would like to see a stronger presence of the bank in hong kong. shery: japan and south korea coming online. take a look at the gains we are seeing in japan. tech and real estate leading the gains on the nikkei, up .4 percent after seeing the worst day since july. we had the output for industrials coming in with a contraction, a little worse than expected. we had the jobless rate that

came in lower than expected. one boj member saying risk for deflation has intensified. the japanese yen holding steady about 104. take a look at korea. we are seeing gains after three sessions of losses. the korean won strengthening against the u.s. dollar after falling for the weakest in two months. industrial output members beating estimates and rising year on year for the month of december. we are watching sk at the moment. outlook comments for the server expected to rise on data centers this year. haidi: let's take a look at how we are trading and is part of the world -- a strong rebound when it comes to sydney stocks.

off session highs but recouping some losses after suffering the worst send -- worst sessions at some timber 30th of last year. broad gains except for energy. taking a look at new zealand -- up just over 1%. almost all major new zealand banks expecting to reach the midpoint by june of this year instead of the third quarter of 2023. also a stable session when it comes to some of these currencies like the aussie and kiwi with a broader dollar overnight. just a few minutes ago, we were taking a look at the after hours trading on gamestop, up 60% after falling 40% in the regular session. how does this and and does it

matter? is this a distraction from the fundamentals of the rest of the market? guest: it is a distraction, but it's also an issue for trading houses around the world. we've seen hedge funds can lose quite a lot of money if they are short of stocks and they get ramped up by some of these retail traders. the consequences go further than that. if you are a large trading institution, you have risk managers that monitor risk across your portfolio. with the volatility increases in equities, it's not just because one stock is moving a lot. that will impact all of the derivatives that come through indices and it starts to spread across derivatives in bonds, currencies and commodities. the risk range becomes very edgy because they see these extreme moves because they will go to traders and say even though your position size has not changed,

your volatility has increased a lot. what you get is a knock on effect. just because gamestop has nothing to do with anybody trading commodities or trading bonds, portfolio risk has risen, so people have to trim exposure in other areas and we are getting this knock on effect and we are only seeing the beginning of that. if we get volatility in specific names increasing for a little longer, it will start to trade ability to trade other asset classes and once we see a reduction in risk there, it can spread quite quickly. so we are seeing some unusual moves in currencies and in other places in the stock market. part of that is the effect of these large intraday swings we see in single stock names. shery: and we are seeing those in individual australian stocks

and names in japan as well. are there some markets in asia more insulated from this volatility given they are more regulated in places like korea that have an outright shortselling band? mark: yes. that would certainly help and then you think of places like hong kong and singapore where the securities bodies there are very experienced at dealing with big market movements. so you would look at the countries that have a long track record of dealing with market shocks and those kinds of places would be in a better position. you can see what happens, though it was unrelated specifically to anything that happened with gamestop, the biggest decline was in vietnam, one of the newer markets in the region. it was more to do with virus cases. but you can see a less mature

market, the swings can be very extreme where the regulators don't have quite the same track record to go back and look at how they have dealt with the previous crisis. it could help to withdraw from certain markets -- more mature investors may say we are not quite sure how they are going to handle this so we would rather go into more established markets where there's more safety on the day today movements rather than some of the smaller markets. shery: always great having your insights. you can follow more on this story and all the days trading on mark's blog. for now, let's get to karina mitchell with the first word headlines. karina: we start with the latest pandemic numbers. global cases are now above 101 million with more than 2 million reported deaths. the numbers come with 85 million people now having been vaccinated around the world. the european union is set to

tighten rules on the export of covid-19 vaccines in a row with astrazeneca over access. the imf says the pandemic has added almost $20 billion to global debt. greenland has reopened its border with new south wales after cracking down on virus infections. all residents can now return home and will not have to quarantine on arrival. queensland closed its links late last month but is now urging people to travel. new south wales has gone 11 days without a covid-19 infection. a combination of coronavirus, brexit and subsequent economic downturn means the u.k. has made the fewest cars since 1984. reduction slumped between 9%, the lowest number in four decades. the society of motor manufacturers and traders expect a slight upturn this year. a return to production levels is unlikely in the foreseeable

future. two americans accused of helping the former nissan chairman escape from tokyo failed in their attempt to avoid facing charges in japan. michael taylor and his son ask for more time to challenge extradition from the u.s., but the judge rejected their argument saying they would be denied legal rights in japan. they still have a chance to appeal the latest ruling. 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: still ahead, we will be speaking to the robinhood ceo amid the retail trading frenzy. plus hung lung properties chairman ronnie chan joins us to talk about the companies latest result and the outlook for the property sector. much more to come. this is bloomberg.

shery: hang lung properties reporting a loss of 4.5 million hong kong dollars compared to a profit of almost 7 billion the year before. they also saw declined. the chair, ronnie chan joins us. always great to see you. do you have any expectations the outlook is going to improve? ronnie: for hong kong or mainland china? in residential terms, it should be ok. commercial will be tough. commercial rental is going to be difficult. mainland china is very bifurcated. if you aren't luxury like we are, you're doing well. if you are in mass, they are improving but have not yet recovered up to the 2019 level, but i believe this year they should do better. haidi: your flagship plaza 66 in

shanghai did extremely well given the circumstances. what is the impact of things like restricted travel over lunar new year potentially for the development and clusters when it comes to covid-19? are you banking on better performance to continue or rental performance to continue over the next year? ronnie: the good result is not just in 1966, it's in any of the luxury shopping centers we have. we have five and two more on the way. the luxury type and non-luxury type, there's a big difference in performance. shanghai is doing very well, the spring city 66 and so forth, i think the luxury market is going to continue to do very well in

the coming year. shery: when it comes to china or hong kong, what are you seeing in structural changes given the covid pandemic? are you expecting people to go back to offices or will the work from home trend continue? ronnie: they work from home trend will continue but not all offices are going to be replaced. aristotle said we are all human creatures and the productivity of face to face meeting is very important. i think offices will be hurt but it will not be replaced. the mainland chinese office is weak because there's so much oversupply but we are able to keep up our convincing but rent is a little soft. in the retail area, if you are

in the lifestyle type or luxury type, if you are in the top end of brands, many of them double or even three times the sale from the year before and as a result, our rent has fared well. haidi: you also talked about some of the challenges in hong kong and we've seen some of the challenges when it comes to some of your acquisitions. can you give us an update to the u.s. consulate staff headquarters? ronnie: we had a joint declaration on december 30 and we are waiting for the seller to go through the diplomatic protocols that are necessary and we will proceed with the deal. i think it is a very good deal for everybody. it's not so much covid -- it's the social unrest of the year before that really stop all the

mainland tourists and there is now that -- now not that good a feeling about hong kong and not a lot are coming. as a result, our consumer spending is really down and i suspect maybe 20% to 25% is down because of the shortage of incoming tourists from mainland china and then covid, of course shut it off. haidi: that transaction wasn't completed by the end of december as scheduled. can you give us an eight and does this play into your willingness to acquire more land in hong kong even some of the political uncertainties at play? ronnie: we will continue as long as it is in the luxury residential sector. the rest of the sectors, i'm not

sure but for the last many years , we have been targeting only this one sector of luxury housing. in the coming decade it should still do well. we are a very free society and a lot of people still like to live here. the international financial center i believe will be maintained and as a result, it's going to be good. the rest, i'm not so sure. haidi: do you think the more widespread rollout of a vaccine will improve the rental side? ronnie: i think it is a good thing, i think is a triumph of mankind -- it usually takes 10 to 20 years for those vaccines to come out, so i think it is very good. we will watch. in general terms, i think it should be good for the world and good for hong kong as well.

the problem is a lot of people don't like to be vaccinated. even flu shots, there's always a negative -- i think once people get to know better the facts, hopefully more people will be willing to be vaccinated. shery: give us some more examples of a project you have high hopes for in 2021, whether in hong kong or in china. ronnie: we don't have too many projects in hong kong but all of our luxury shopping centers will do fantastic. and the second half of last year -- if you grow by 60 some percent, you are in the bottom as far as a luxury product. the best-performing ones are well over 100% increase.

i believe that trend will continue. i think the six properties we have in the luxury sector will perform well wherever they happen to be in the mainland or china. in the old days, investors say you have shanghai versus outside of shanghai and that is no longer the case. it is really luxury no matter it -- no matter where it may be. luxury will improve but they are not as vibrant as the markets like 66 and so forth. shery: always great having your insights about all things property. the chairman of group joining us exclusively from hong kong. this city's chief executive says she wants hsbc to have a stronger presence despite concern about china's growing influence.

she blames foreign governments, including the u.s. for arbitrary rules she believes are putting banks in a difficult position. >> i am very encouraged that every central u.s. government leader i have met with anna last year or so has reinforced hong kong has a unique role in terms of the contribution to this connectivity of the capital markets. so i would try my very best to assure you i think the financial sector, you can be sure just looking at our performance. >> foreign banks finding themselves in a difficult position. how are they supposed to comply with conflicting rules? cracks there are no conflicting rules. i think the financial institutions have founded fickle because of arbitrary decisions made by the foreign governments, especially the u.s.

administration. just a few months ago, they were under serious worry and stress about the sanction of individual officers and if they continue to provide those sanctions for individuals with banking services, they will be penalized. just a couple of days ago, the head of hsbc has been grilled in the u.k. parliament for complying with a piece of legislation and so hong kong is very proud of our rule of law where everything is done in accordance to the law, where is what we have seen in other jurisdictions are pretty arbitrary, positions very much driven by a political agenda. so one would ask which type of financial sector one would like to be in? a level playing field and law-abiding bodies and government or something which is

very politically driven? >> let's pick up on hsbc -- questions being asked should hsbc split off its china operations. what are your expectations? >> hsbc is very strong in hong kong and has been a very important part of our financial industry. it has taken a very wide interest in hong kong, especially as we go into the greater a area. i would love to see a stronger presence of the bank in hong kong and i have been communicating with hsbc senior officials from time to time and i respect their decision. they are an international bank, but i tell them categorically that there are huge prospects for the growth of the financial

sector, the banking sector in this part of the world. >> do you see china taking action -- banks in hong kong that comply with u.s. sanctions? >> no indication whatsoever because as long as the banks are doing their job and as long as they are being fair, i don't see why this peoples government would take that sort of action. >> given the conflicting regimes, could we see changes in the banking sector in hong kong? could you envision a time when banks would have to choose one over the other? >> i don't see that prospect and i don't agree that conflicting regimes -- our regulator is as robust and transparent as possible and we also take a facilitating role as far as the banking industry is concerned.

when i was being put under all the sanctions, unjustified, i tried to be very accommodating and facilitating with our financial institutions in order that they could have a better chance to stay in that position without being caught unnecessarily, so that is the approach we are taking and i will continue to work with the banking industry in hong kong. also the greater bay area because that is where hong kong's strength lies. haidi: we will have more on the outlook when we are joined by hong kong airlines director. let's get you a quick check on the business flash headlines. home orders boosted demand for

computers and orders from china were increase. the apple supplier saw profits rise in the december timeframe, easily beating the estimate of 820 8 million. revenue climbed 15% to just over $7 billion. ryanair stepping up efforts to torpedo live tons as multibillion-dollar bailout, asking for a court to intervene in the rescue plan. they are arguing the bailout by the german government unlawfully discriminates between the airlines. ryanair is challenging more than a dozen bailouts of struggling carriers across the union. indian -- the losses came in at $85 million, though its cash burn rate fell from $3 million to $2 million.

they still expect a long road to recovery. profits at suzuki climbed to around $266 million. india's largest car maker reports a steep rise in sales while operating margins decreased and prices for raw materials shot up. they say they expect an uncertain future as commodity prices in the coronavirus pandemic continue to influence production and demand. shery: still to come, the centauri holman -- sentry holman's chairman will discuss the outlook as japan tries to push ahead through the tokyo olympics. but now a conversation for you -- let's bring in emily chang. you have a great interview coming up for us. emily: we will be speaking with the cofounder and ceo of robinhood. robinhood at the center of the

retail trading controversy. robinhood restricted trade on names like gamestop and amc. they say they will be making changes to that tomorrow but we will be getting his response to why they decided to do this after the break. haidi: we will be looking forward to that conversation. take a look at what markets are doing -- we see the nikkei giving back some of those earlier gains we saw after the worst day since july. we have industrial output rising more than expected after the fourth quarter operating profits beat estimates. stocks have moved on day traders , really piling in on the gamestop insurgents in the u.s.. plenty more to come. this is bloomberg. ♪

emily: we welcome our bloomberg television radio on its is -- and radio -- our bloomberg television and radio audiences to the story that will not stop, gamestop and robinhood restricting trades on its platform today. we are joined by vlad tenev. the question is why? what prompted you to restrict trading on these names went to

be fair, there has been volatile trading for days if not weeks. vlad: thanks for having me, emily. we didn't restrict trading, we restricted buying on 13 securities on the platform. customers who held positions on those securities could sell them and customers were also able to trade thousands of other securities on robinhood throughout the time without restrictions. it has been an unprecedented market environment the past couple weeks, where there has been concentrated investing around stocks that have been very, very popular on social media. you are seeing an intersection of social media and finance, and retail investors, individual investors, participating in markets like they never have before. robinhood has been number one on the app store for the past few days, and we have seen growth in

activity, in volume, and elective interest around these names. so we had to make a very difficult decision to restricted buying, but it wasn't restricting trading, and customers who had positions could get out of them unrestricted. emily: that said, some of your customers are enraged. they say you are siding with wall street, that this is a crime, one person saying you should go to jail. what is your response? there is a lot of misinformation -- vlad: there is a lot of misinformation. there are people saying we were forced to do this by market participants. that is categorically false. we were not directed by a market maker or any other market participants. this was a technical and operational decision that we made.

because robinhood as a brokerage has financial requirements, including clearinghouse deposits that we have to make to various clearinghouses. some of the requirements are actually based on volatility in the markets, and in this current, unprecedented environment, can be substantial. so to protect the firm and protect our customers, we temporarily disabled buying these securities. we hope to enable buying as soon as tomorrow morning. emily: that said, did any of your investors or other market makers ask you to halt these traits, even if that is not the reason why you didn't? vlad: no. emily: talk to us that a little bit about why you would allow users to sell, but not by, -- but not buy, if you are about democratizing finance?

vlad: users not being allowed to sell would be very, very painful to customers, getting out of a position that you are holding and not being able to do that is painful. and we stand with our customers. we want to give them the ability and the platform to invest in stocks, buying and selling, so restricting buying obviously is not as painful to customers as restricting all trading. emily: a question from a viewer, if hedge funds can short 140% of a stock retails can't go long because of volatility and free market, how does that make sense? vlad: look, it is not negotiable for us to comply with our

financial requirements and our clearinghouse deposits. we have to do that. robinhood has always stood and will continue to stand with the individual investor, their ability to have access to buying and selling stocks. i have got to say, now i can understand how clorox and lysol were feeling at the beginning of the pandemic, when there was so much demand for something. so we are doing what we can. we hope to have them enabled tomorrow morning, and the team has been working incredibly hard day in and day out, even before this, so that we are available to our customers, and we operate and run a reliable service for them. david: you aren't -- emily: you are now facing scrutiny from both sides of the out. aoc tweeted this is unacceptable, we know -- we have to know more about robinhood's decision to block investors from

purchasing gamestop while institutional investors are free to invest. ted cruz tweeted that he fully agrees. will you come to washington to testify about this? vlad: we are glad both sides of the aisle are coming together here, obviously under difficult circumstances that are challenging. look, we are always open to having a conversation. we think it is a great opportunity to educate the public as well, about how some of the mechanics around settlement in the financial markets work. there has been a lot of misinformation out there about why robinhood did this, and we first and foremost did it to protect our firm and our customers. emily: let's talk a little bit about what comes next.

bloomberg is reporting that you have drawn down your credit line. why did you do that? vlad: going back to the market volatility, which increases the deposit requirements at various clearinghouses that we have to deposit cash into, the more cash we have available to deposit that these clearinghouses, the more we can allow customers to buy, especially these stocks, unrestricted. we are interested in removing restrictions, and removing the restrictions as per our operational requirements, and increasing the amount of cash available to fund these deposits will allow us to better do that to the greatest extent possible. emily: you have been hit by some

lawsuits, are you prepared to deal with the avalanche of complaints, the people that want to sue you, and it do you have enough capital to clear the streets on top of it? vlad: we understand that people are upset when they want to buy a stock and are not able to for some time. we obviously stand with our customers in allowing access, giving the retail investors the ability to buy and sell stocks, and we will continue to do so. we will continue to do so, and our focus right now is on serving them and making our service as reliable and available for them during these unprecedented market conditions. emily: what have your conversations with regulators been like? vlad: we are in constant

communication, as a registered broker-dealer, with regulators. and we have a great team in compliance and legal we have been building out through the past year, and we have been working with our regulators throughout the history of the company, and that will continue. david: -- emily: did regulators contact you before you decided to restrict, in part, the trades? vlad: i don't want to get into details of when we communicated with regulators, and the conversations come other than to say that we are in constant touch with them. we talk to our regulators all the time, not just in unprecedented conditions, but on a regular basis. emily: what happens when you list the restrictions or whatever you call what you put

in place -- when you left the restrictions were whatever you call what you put in place tomorrow? is that something you are prepared to do? vlad: the team is working very, very hard to make sure that customers not just have access to all the stocks, and again, it was just 13 stocks we temporarily sent to a position of closing only. so we are interested in removing that. we want to do that in a way that is clear and safe, and teams have been working very, very hard to make sure that if we ever do have to impose restrictions on anything, the communication of those restrictions is high quality, and customers understand what is happening and what they can and cannot do. emily: how do you decide, and some might say, who are you to decide when to restrict or not? tesla is up 1000% over the past

year. i was that any different? vlad: i think these situations are different. no situation is the same, and these are unprecedented times in the past couple weeks. robinhood has been number one on the app store for the past couple days, and the intersection of social media and finance that we are seeing right now is not something that i have seen for -- seen before, of this kind. emily: your mission, you have always said, has been to democratize markets, and your brand is important, and i wonder how concerned you are about to hit your brand. because someone say, why restrict trading at all? you look more like sheriff of nottingham laying dress-up, then robinhood -- playing dress-up,

than robin hood. vlad: we restricted buying temporarily. we are look about access and are going to continue to stand for the individual investor. for the longest time, the criticism robinhood received is, are you making it too easy? are you giving too much access? should individual investors be able to invest in stocks? so for many years, the idea has been yes, they should have access, we need better tools and education to a orb them, but that access needs to exist we will continue to be an advocate for that. it is in our name and it is what we stand for as a company. emily: i wonder if there is something in your zero commission model that makes thing like this more likely, and one that you will potentially be reevaluating as a result of what you have learned the past few

days. vlad: i don't really think it has to do with the model. this is just an unprecedented union of social media and financial markets. and we haven't quat geithner through -- haven't quite gotten through to see what that means for us as a society and in a economy. so we are working through it, as are other brokers. and robinhood wasn't the only broker to restrict, lots of brokers restricted these securities in one form or another throughout the week. emily: has this impacted your ipo plans at all? we reported robinhood was hoping to go public this year. has that changed? vlad: i wish i could talk about that topic. all i can say is that we are

committed to serving our customers and building the best possible product. we raised over $1 billion in capital last year, so our position remains strong. emily: vlad tenev, robinhood ceo and cofounder, appreciate you stopping by. back to you. shery: we go to investment in the workforce. pwc reports upscaling workers could ask -- up scaling -- upskilling workers could create more than 5 million jobs by 2030. our next guest says before the pandemic, better skills were already urgently needed and now it is even more urgent.

pwc national chairman bob moritz joins us. bob, great to have you with us. thank you very much for your time. start with this report. where are you seeing the biggest skill gaps, and what would it take to upskill the workforce? bob: it is clear we were dealing with this phenomenon well before covid-19. unfortunately, covid-19 made this far worse for two reasons. first, our education systems have been significantly damaged we estimate we have 1.6 individuals, mostly youth, that have been negatively impacted by covid-19 in terms of access to education or quality education to get those skills for the future could second, we have had a model from a business perspective that we haven't had a lot of investment in our people. we have been focused, and appropriately so, on mental health and physical health and issues associated with covid-19. we have lost time on this issue.

as a result, we see a big need and opportunity here. the need is to make sure people have the opportunity to be prosperous, and we see the opportunity of actually creating jobs. we have to deal with challenges that are out there, specifically, how do i think about working in ways with technology behind? second, how do i adopt technology in scale? and third, how do i lead is a leadership team, entrepreneurs and the like, in this world we are dealing with, which is creating so many new phenomenon, and what you were talking about prior to this segment is a sterling example of that. shery: who takes the lead, government or private sector? bob: it has got to actually be a combination of the two. we see the mentor money, time and collaboration needed is going to bring together public-private partnerships. see many businesses today doing things themselves.

they are having an impact, which is fantastic, and they are reporting on it, but the reality is, they are doing it in small, fragmented ways. we have to come together more. so public-private partnerships, for example, part of an organization that is an option -- that is an offshoot of unicef, there -- the job is for them to scale up. it gives them access to the quality insights and skills that are needed and qualities of innovation for long-term success. shery: as we had to a post pandemic world, what are business ceo's that talk to you every day most worried about right now? bob: you see the volatility in the marketplace still, even though we have generally a positive trend with a lot of light at the end of the trundle -- at the end of the tunnel, assuming the vaccination comes in scale. we see great disparity around the world.

you see companies that are well-prepared and they will be well-positioned, other countries are way behind in terms of securing vaccines and establishing quality vaccination processes. the second issue is how we make sure the combination of the market, some volatility and uncertainty you just described, is being managed appropriately. that is what ceo's want, certainty. the third thing is what is going to come out of the new administration in the u.s. and what is going to come out of changes that will happen in europe, when you think about changes with angela merkel, her successor coming in the fall. these uncertainties are still top of mind for people. the last one i would make is, how do organizations manage this digital world we are living in? we have got to the biggest case study in the world in the fastest way possible. how many of the benefits will be sustained over time, and how many negatives will be figured out, i way to mitigate those, so

people can get back to more normalcy in terms of how they work, live and consume? shery: it is not just digital business models that are changing, it is also tech decoupling and fragmentation we are seeing from u.s.-china tensions that continue. and even with a new biden administration, we continue to see this. how do businesses navigate this environment when we are still expecting more tensions? bob: look, the reality is every ceo is trying to manage through this complex world. you have a number of constituents with different points of view and different systems in place. there opportunity is to focus on what they can control. let's make sure they execute well, bring operational discipline to points they can execute on, influence when they can, make sure they are bringing points of view to the table in terms of what is important from a policy perspective, and let others deal with it and scenario plan for uncertainties that may

be coming that is the conversation that happening in the boardrooms right now. there is a great deal of uncertainty and complexity, but good organizations that are sticking to their core intervals, focusing on upskilling their workers, providing good consumer experiences and being well-positioned with their balance sheets to take risks, those organizations can move from speed, take advantage of opportunities and those organizations, if they do well not only for investors but also the broader group of stakeholders, great opportunity for long-term sustainability and value creation. shery: are using those changes already, especially when it comes to building redundancies in the supply chain? and perhaps some set-aside for compliance cost if you? ? have different regulations and so forth bob: -- different regulations and so forth? bob: you are seeing it in

different ways, both a supply chain and allison -- both a supply chain analysis and customer experience. you have seen nothing but internet sales over the web and otherwise. when will they get back to retail? they are looking at optionality on the supply side and the consumer side as well. they are building data and the right mechanisms to capture data. and duplicate systems in terms of complying with rules and regulations around the world. and we are going to see more of that as you think about fragmentation. how do you continue to invest in the broader stakeholder community? each country is looking at this. this is why it is important for business communities to get a singular group of expectations on how to report around climate, unsustainability, on what they are doing with their people and skills, equal pay, things like that, that is why we are looking for a global set of standards in terms of what to report to

stakeholders, get the information they need, and investors, ultimately allow themselves to judge those that are doing and not doing in terms of investments and choices they are making and last, society can judge their success with long-term sustainability in mind. shery: what are you seeing in terms of those changes in the asia corporations? bob: a couple of things from an asia pac perspective. there is a great opportunity to leverage opportunities in digital and be a worldwide supplier in that regard. a lot of work has been done in terms of bringing that educated workforce to life, so that is an opportunity for them to explore more so than perhaps other parts of the world. the second point is making sure they rethink their labor supply and look across the region. third, make sure you are thinking about regional play. the underlying demographics in asia are positive in terms of the rise of the middle class, increased amount of people

coming through as you look at those moving from lower income to middle-class. that will require consumption, infrastructure and the like, that is a big opportunity to serve asia well in addition to being a supplier for the rest of the worldpay that is a big opportunity for asia pac entries that gives them opportunity for success. we see this in growth expectations the imf has put out in the last couple of days and we see that also. shery: with the launch of the new biden administration, we continue to hear talk about perhaps higher corporate tax rates, 20 8%. using concerns -- 28%. are you seeing concerns among your clients? bob: the world order we are living in right now requires us to look at the five r's, repair the damage, rethink what you are doing, reconfigure assets, restart and report. balance sheets around the world are going to need repair.

the only way to do with that as a growth agenda, inflation agenda, some combination of that along with taxes. for individuals are at the corporate level. the u.s. is going to be one of those examples as you change administrations. the question is how much and how fast and here again, there is going to be a tough balance making sure we don't put too much uncertainty in the mix, too much pressure on taxation, that will cause negativity to the growth agenda we expect out of the u.s. right now. the administration has to strike that right allen's. shery: what do you think, especially with congress playing a huge part in this and moves toward regulation? bob: the regulatory agenda is clearly another one to watch. you are going to see more on the broader esg end climate agenda, you see that with announcements made over the next couple of days. that could be the thing in terms of trying to get into a positive. the business community will have to deal with more compliance, making sure they do the right

things, and judgments will be done for enforcement. the other side of the equation, some stuff being pushed towards trying to accelerate change. change requires innovation, innovation should create entrepreneurship, entrepreneurship should create jobs, so balancing this is the opportunity for the administration, knowing they have to deal with covid. shery: bob, thank you, bob moritz chair of pwc international. haidi: let's take a look at the state of trading in this part of the world, a roller coaster ride. gamestop took over all the headlines and retail investors had their moment in. -- moment in the sunlight. transport data showing a drop as the virus its manufacturers, the second months of decline for industrial production in japan.

the kospi lower, actually robust in the latest reading. in sydney, abroad rebound after the biggest drop since september last year in a thursday session. we are seeing a second day of gains, and gme, a case of mistaken identity, not gme, gamestop. new zealand up 2% after the bank saying inflation target will be reached much earlier, june of this year instead of the third quarter in 2023. flat trading when it comes to asian equities broadly.coming ue analysis on the mayhem over gamestop. wolfpack research founder dan davis joins us in you can find out why he says more regulation is the wrong position. plus, the outlook for stimulus and more recovery with quadratic

analyst -- quadratic chief investment officer nancy davis. "china open" is next. stay with us. this is bloomberg. ♪

♪ tom: it is 9:00 a.m. in beijing and "bloomberg markets: china open," shanghai, welcome to "bloomberg markets: china open," -- welcome to "bloomberg markets: china open," i'm tom mackenzie. david: i'm david ingles. it is friday on the chinese mainland. top stories today, the gamestop going global, shining a light