haidi: theory good morning. we are counting down to asia's major market opened. kathleen: i am kathleen hays in new york could welcome to "daybreak asia." asia looks to extend gains with global stocks on the longest winning streak in 17 years. the nikkei 225 set to climb further after topping 30,000 for the first time in three decades.

a rare deep-freeze blankets texas, disrupting energy supplies, and triggering growing power blackouts. oil gets a 13 month high as west texas intermediate futures surge. bhp is one to watch this hour after private -- profit rises, misses estimates. and how to run a global sports event in the middle of a crippling pandemic -- we are joined this hour by kenneth's austria -- tennis australia's ceo craig highly. -- tiley. sophie: aussie shares are markedly higher. beach energy sliding on the back of its results. in japan, keep a close eye of what is going on after a top 35's for the first time since august, 1990. nikkei futures point being higher up your u.s. futures

edging up somewhat. investors are staying greedy. according to a jp morgan gauge of complacency, they see investors the least fearful in about 20 years. the key risk here potentially being if the fed does turn is bond buying. it continues to battle cold weather. let's switch of the board to check in on shares that are moving in sydni on the back of results from the iron ore mining giant. shares jumping, the profits missing estimates, but shares dropping. plus, bhp did raise its guidance on the stronger aussie dollar.

kathleen: thank you. we will be hearing from the head of bhp later -- ceo mike henry will give us his first interview post earnings. moving on to oil futures, higher, with the most 4 million homes in texas without power, rare subzero temperatures hitting the heart of the energy sector. houston bureau chief jill carroll is on the line. i was just in texas. -- outages in texas -- we're getting ready for that for the second night in a row. this has asked tended -- this has extended to 13 other states. what can we expect as this continues on the weather is getting colder? joe: it is getting colder here and the mayor of houston said he expects the blackout numbers to increase can we sell one million homes increasing just four hours -- it is pretty astounding. this kind of cold and never happens across most of texas. houston, the fourth biggest city in the country has been totally

paralyzed. the other major cities in the state are completely shut down -- this has spread to other states. they are warning as far away as california they will see blackouts because of the ripple effect here. haidi: we know this is not a state generally expecting of these temptress. why was there a complete lack of preparedness? joe: we reach the physical limits of what can be done -- we do a lot of wind power here in texas -- which a lot of folks don't know. the figure everything is based on oil and gas, but the windmills are covered in ice, so they cannot spend per that is in a deficit in the power supply. the other aspect, if temperatures drop to a certain level, pipes freeze, processing plants freeze. you cannot move the resource to your power plants, and that is what we are seeing now.

we also see the biggest oil refineries in the hemisphere have shut down because they cannot get gas, cannot get crude oil -- we are going to see a huge spike in gasoline and diesel prices very soon. haidi: we see it shut down, so this is a shock demand event, but what is going on the supply side in terms of not been able to meet that supply? joe: like i said, the numbers are hazy at this point but we think there are half a million barrels of texas crude oil production. there is no quick fix. honestly, this could last all week. turning the refinery on to say long time to do it safely. we can be stuck in this for a while.

kathleen: all of all the various people you have been speaking to, do they expect us to be over and done in a few days or do they expect it to have an impact on oil prices question mark joe: no one can really say. these are -- these -- this is never have content they don't know how much equipment will be ruined. gas and oil are tracked in rocks underground. it is going to be a research study for a long time to come. kathleen: -- haidi: our houston bureau chief, joe carol. you can go to the terminal and

in the mobile on the number anywhere app. it's good to karina mitchell with first word headlines. karina: the world health organization has cleared astrazeneca's vaccines for emergency use. it will speed up inoculations in developing countries which has lagged behind wealthier nations. it also allows the shot to be administered to all adults over 18, although questions remain over its ability to fight new strains. meanwhile, house speaker nancy pelosi says congress must create an independent 9/11 commission to investigate the january 6 arming of the capitol in washington. she said security is under review to ensure such an incident will never happen again. pelosi says current house and senate members should be excluded. and myanmar is tightening its grip on power, shutting down the internet over the weekend, and making it easier for authorities to make arrests.

street protests continued even as the military detained civil servants, lawyers, and other professionals. telecom companies were ordered to cut internet services coming monday to help prevent protests from spreading. and the race to mars sees the united arab emirates leading in publishing and myths -- images of the planet. the first show the largest volcano. it won't orbit for something -- it will orbit for some time before attempting to send a lender to the surface. nasa and china are also about to reach mars. global news 24 hours a day on 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. kathleen. kathleen: thank you so much. still ahead, we will assess china -- japan's growth process with its vaccine program due to

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haidi: well, after the cancellation of wimbledon, no fans at the u.s. open, and very limited spectators at the french open in 2020, posting the first grandson tournament in melbourne would be challenging. fans are expecting to see the end of my lockdown on wednesday night. during this now, tennis australia ceo craig tiley. what a wild ride it has been. this was meant to be a shining global example of how australia, one of the covid-19 success stories could host an international tournament in

front of real, live crowds, and you have had so many challenges since then. how would you handle things differently -- is it still worth doing had you known all the different issues from players and staff being positive on the planes, having to go into isolation and the five-day lockdown means players are playing in front of no crowds again. would you still do it again? craig: we would do it again. we had the players in australia for five weeks and since the pandemic began we have had significant planning and contingencies built in. all of the things we have seen play out where things that could have potentially happen. we enjoyed the first five days with crowds. it was great to have over 1000 international players with entourages from over 100 countries. they were playing in front of them in one case, a packed stadium.

then the lockdown over the past five days, we're hoping and planning the last four days, getting crowds back again. we have gone from crowds to no crowds, back over to crowds -- we have had positive cases, isolation, quarantine -- what we know today is very different from what we knew four weeks ago, the we are proud of the fact that our broadcast numbers have been extremely strong around the world -- great stories, great tennis, and we're looking forward to a strong finish here. haidi: how are the players reacting to the latest lockdown at having to play without an audience, because a lot of this has been marred by the negative headlines -- some of the interviews given by certain players complaining about having lockdowns, complaining about having to isolate -- the conditions in the hotels. craig: absolutely.

at the beginning, getting through the 14 days of quarantine was not an easy exercise for the players, but they also realized with a modified environment they can get out for five hours a day and train and that is about the amount of time that would be required anyway day. there was one player positive out of the 1000 people we brought an end a few other close contacts. there are about 70 that have been in hard lockdown. once they were in lockdown for three or four days, they were used to it, and then of course, going into the extra lockdown here, they have been great and we even have a situation over a week ago where we had a positive case with one of the workers and they had to be isolated and came back negative. because we have no community transmission -- a very strict protocol and processes to ensure

that everyone does not transmit the virus and as a result, we have had to have the players adapt to this comment they have been great. there have been one or two that complained, but you expect that. we have a large group of players and their entourage and they have been appreciative of the opportunity. we have had $86 million. this is a significant opportunity for them. haidi: -- kathleen: very significant for the sport to have this talk plan again without limitations. ec -- you see many showing can to just sit at home and watch tennis from a far -- why would they want to go back as much when they can't? tell us about your sponsors and how much -- how eager they have

been to pay up to be part of this? craig: we're lucky our family of sponsors, broadcast and marketing partners -- we held a call with a large group this morning, keeping them updated on what is going on, and they have been some pathetic to our challenges, and also on the journey for the long haul. this is a platform for us to get momentum going into 2022. we don't know what tomorrow brings with the virus. our partners have been great. as far as the fans go, at the beginning, there was slow uptake. within two to three days it really accelerated and we were building great momentum, sold out this past weekend. then of course on friday night had to stop playing because of the lockdown in a surreal moment coming to the sign -- the weekend with no fans.

there many protocols we have adjusted. the moment you have a positive case in your playing group, your bubble, then as well as close contacts have to isolate. that is the biggest risk -- the biggest risk you always had, and every day you wake up i am always extremely nervous about that. we have not had that. we have all the top players. kathleen: of course one has to say, are there any lessons for japan, the tokyo olympics, but take the number of fans, the length of the event and how far it is spread over a big area -- it is multiplying it, right? so, are there any lessons for the japanese after watching what

you are doing in australia? craig: i think absolutely we had shared some things we are doing, the frequency of the testing, how we do the nasal testing, the saliva will test, and also how we are isolating and quarantining athletes and their entourage -- how we have created a modified environment, and how we protect the bubble to ensure there are no positive cases in it in the process as we go through the contact tracing. we have learned a lot and we are always happy to share those. clearly, there have been games -- the big games have more athletes than we have, but one thing we know that works come if you isolate the group and quarantine them -- if you can create a modified training environment, you almost ensure the athletes coming into your bubble are free of the virus and they can compete in a free environment. the next challenges you

integrate fans, and that is a whole different series of requirements, but we have spoken to some people at the olympics and we will continue to provide the intelligence we have. we are not saying it is the way to do it -- we know what has worked for us, and we also know where we can help others. it has been a member logistical exercise -- mammoth logistical exercise, and it has not yet been done in global sports and live sports entertainment to the extent that we have done it. if we can finish with the event continuing and have a man and a woman holding up the trophy, and maybe a new person, new player, would be exciting for our sport. haidi: we know the total prize money pool has not been affected . i'm wondering command you heard anything from sponsors -- you think there would be more caution knowing the experience

that is likely to play out during covid? craig: it is a great question. so far, from a broadcast point of view, we have stayed all because we have content we are pushing out. from a sponsor point of view we have not seen reduction. they can't activate from the point of view of broadcast and digital without having crowds. there has to be a an impairment there, but it has been really good -- not as much as we initially predicted. our major hit financially comes in from experiences and ticket sales and that will create a significant hole, but we, as an organizational we had a cash reserve -- we've taken a loan. we will run into debt the we think it is important -- and exercise we are going through to maintain a level of momentum going into 2022. haidi: thank you to tennis ceo

craig tiley. still ahead, we assess the virus impact on entertainment and tourism over the lunar new year. the ceo of imax china is with us in the next hour. still ahead, the world's top miner reports underline profits that miss analysts.

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haidi: bhp reported a 16.5% increase in profit, but the result was weaker than what analysts were looking for. paul allen has the numbers -- you see the skyhigh iron ore prices, meaning high -- skyhigh

expectations and is this just a case where those expectations were too much? paul: the bhp ceo is happy with the numbers, calling it a strong set of results, and it is up $.65 on the same period last year, and it is two years in a row of a record dividend. the underlying profit was $300 million below estimates. at the same time, they are still of 16 -- 16%. important to keep perspective on that number. the result would have been better still had it not been for write-downs -- there was a 20% drop in first-half profit. they also took charges of $200 million related to covid restrictions and $400 million related to the dam failure. there were, dirty prices in iron ore and copper helping bhp

along. they shipped 145 million tons of r&r and that is where its revenue come -- iron ore and that is where its revenue comes from. a strong set of numbers. kathleen: bhp is awash with cash right now. it feels good for any company. what will it be used for? paul: the guidance has been upgraded to 7.3 billion, about 300 million higher -- another reason for that is the stronger-than-expected aussie dollar. you have the south flank iron ore and then all caps -- perhaps a decision on potash. that has been sought-after as a fifth pillar to bhp's been her for a long time but has failed to materialize to there is a 5.3 billion dollars proposal sit in front of the board right now. we should have some news on that sometime this year.

haidi: thank you. kathleen: thank you, paul allen. don't miss our interview with bhp ceo mike can repeal have other ceos this week. jaguar landover has laid out plans to discontent of combustion engines and become fully electric and four years. they will invest their set-top how -- the top tot investment unit will go plug-in after 2024. the jail are suv has had trouble -- jlr suv has struggled to find traction after its launch. sources in the state say the automaker is assessing plans for offices, a manufacturing facility and r&d work with bangalore becoming a hub for electric vehicles and aerospace work.

they currently account for 5% of auto demand in china compared with less than 1% in india. a marquee merger between investing heavyweights is descending into a brawl with a rival. sixth street partners is seeking to block the deal until its concerns are addressed according to a letter sent to investors and seen by bloomberg news. the combined firm plan to go public with $45 billion in profit than a new name, blue i will. conservative social media site parlor is back online. amazon's cloud unit's pulled the plug after saying writers have used the service to plan the storming. it is not clear which service provider is hosting parl ande the platform was set to only be intermittently available onr monday. up next, greed is calling for no more delays in the covid next him. our exclusive interview with the prime minister ahead.

this is bloomberg. ♪

karina: blackouts triggered by a frigid weather have spread to more than 4 million homes and businesses across the central u.s. in a deepening energy crisis that has hurt the texas power grid. it spends from north dakota to oklahoma. house speaker nancy pelosi says congress must create an independent 911-type commission to investigate the january 6

storming of the capitol in washington d.c. she said security is under review to make sure and incident like that cannot happen again. current house and senate members, she said, should be excluded. the world trade organization has its first female and african leader. she becomes director general after the biden administration ended the opposition of former president trump. she's the finance minister of nigeria and has spent 25 years the world bank. she will be tasked with restoring trust in a rules-based system roiled by the pandemic. singapore may offer more budget support for its economy after covid-19 triggered the worst performance since independence. the traditionally conservative city state is expected to layout a third straight budget deficit despite being passed the worst of the pandemic. with its shortfall ending, it may result in a deficit

equivalent to 4% of gdp. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. haidi: the world health organization has approved the astrazeneca vaccine for emergency use, adding its approval and it's expected to speed up inoculation in developing countries. it comes amid concerns about its efficacy against mutated strains of the virus. what do we know in terms of the data about how effective this vaccine is against the new variant? michelle: the astrazeneca vaccine does seem to have efficacy against the most severe type of infection, especially preventing hospitalization and death. it is less effective against the south african strain and that is

why some areas have stopped using it for the particular strain of the virus. the thing is it is a very effective vaccine generally and as we are trying to get the entire world immunized against the virus, it's important to have other alternatives out there and we can maybe come back later and give a booster shot or more targeted immunizations if needed. but we are getting some benefit from this vaccine and it is important the who has cleared it and is making it available through the kovacs program. kathleen: closer to home in the u.s., there's 54 point 6 million doses that have been administered at this rate. it will take a few months to get to 75% of the population. is it going to help now that the biden administration is looking

at turning over the responsibility to companies like rite aid whose ceo is on the sunday news shows saying let the private sector do it. we can get this done. michelle: the issue in the united states is just doses. there's not enough to meet the demand from so many people in the u.s. that do want to get immunized against the virus. the issue is going to be this tipping point, once we start increasing production and getting those numbers out there to open up these mass vaccination clinics that could be running 24 hours a day seven days a week if we have enough immunizations. once we get to that point, it's only going to take a couple of weeks or months until we can get the entire country that wants to be vaccinated. what health officials are looking at now is what happens once we hit that point where everybody who wants to be vaccinated will be vaccinated. you are 100% right, letting it

go to people like rite aid, walgreens and cvs and hospitals rolling out these clinics, we are going to get there quickly and certainly in early summer, by midsummer, everyone who wants to have the vaccine will have gotten it. haidi: we have been talking about power shortages across texas, the unexpected cold weather. how is that affecting vaccine rollout? we've talked a lot about the delicate conditions the moderna shot has to be kept in. michelle: it's -20 degrees in minnesota today, so it has really decreased the number of people going out there to get shot. some of the clinics have closed down because of the weather and we are seeing that because of the bloomberg vaccine tracker. certainly, the moderna shot

needs to be kept cold. the outside temperatures don't have an effect on the doses themselves. the thing that becomes an issue is when they start thawing the vaccines and you are bringing out big boxes of them. you need to make sure you have not reconstituted them and then get them out to the number of people. we are not seeing to any of those issues raising up but we are seeing a decrease in the number of people coming out to the clinic that are open and trying to vaccinate people as the cold weather grips the country. kathleen: another unintended consequence of this cold weather. moving onto greece -- the european union has learned lessons after vaccine distribution. speaking exclusively to bloomberg, the greek prime minister says they must now prevent further obstacle so that battered eu economies can anticipate reopening. pm mitsotakis: greece, overall,

has done better than most european countries dealing with the pandemic, which was unexpected given we entered this event with an underfunded health care system. but our statistics are much better than european countries and we have rolled out vaccinations faster than other european countries. it's a completely digital process which came as a surprise to many greeks and we have been able to vaccinate people at a relatively fast pace. we are dependent on the number of vaccines we are receiving from europe. i expect a number of vaccines, q2 to ramp up significantly. our priority is to vaccinate older people and then move to people with underlying conditions. once we get through these categories, we will look at prioritizing vaccines but hopefully we will have more vaccines and be able to administer them giving the demand -- given the demand in

greece and we hope a significant percentage of the population will be vaccinated. we opened up for tourism and did it in a completely safe manner. and we didn't have the tools that we have at our disposal now. even in terms of testing, there was limited testing available. we will have additional testing capacity which is very helpful once you try to open your country to travel. cracks how frustrated are you when it comes to doing this? now 6% of your population you have done but because of the slow introduction, you are vaccinating people as quickly as you can get a hold of the vaccine, but there is a problem of supply and that seems to go back to brussels. how much do you think the commission was at fault for that? pm mitsotakis: i have been in ardent supporter of the concept

that europe needed to purchase vaccines at the european level and then distribute them to all states, making no difference between a small country and big country. we have benefited from this approach. we have benefited in terms of the execution of this project. now we need to move forward to make sure as new vaccines are approved, this approval will happen quickly and we will not run behind other countries in terms of how greatly we receive the vaccines. in brussels at the administrative level and bureaucratic level, the lessons -- we have accepted what has happened and learned our lesson. we need to move forward and make sure come march or april as new

vaccines will be approved, that there is no further delay in delivering vaccines to the member states. we have the capacity to administer many more than were currently administered and we have the infrastructure in place. it simply a question of getting our hands on the vaccine and this is at the end of the day a european decision. >> thinking of the economic cost of all of this, the first quarter looks tough in greece. that presumably, the lack of vaccine is becoming a major part of that. pm mitsotakis: every time you close the economy, you pay a heavy price and greece is no exception. we are no outlier. we are going to suffer a big recession in 2020 and q1 is not going to look as good as we thought it would look a couple of years ago, but we are not an outlier, we are not the exception. if anything, we are in our third

lockdown and hopefully in a couple of weeks we will bring cases down significantly and we can contemplate reopening the economy. haidi: that was a greek premise or speaking to us earlier. coming up, the japan vaccine rollout starts on thursday. this is bloomberg. ♪

haidi: let's get you a market check. what are you watching? sophie: earnings in australia helping to push the index higher and futures are gaining continuing the rise we've seen. investors seem greedy according to market complacency. to dominate with oil trading at a 13 month high. the aussie dollar trading at a one month high ahead. checking in at some movers we are keeping an eye on in sydney, we have payments player zip leading the gains and bhp's record dividends which rbc says

will drive even further income base re-rating. snap shares gaining ground and rising with the company back in the black. company group -- switching out the board, shares moving to the downside after regulators decided it is unfit to run its casino. the stock downgraded to a cell and holding under pressure despite the pickup it saw in the first half profit. treasury wine losing 6%, falling head of its results due wednesday. kathleen: we want to get to some breaking news from japan's number two men. japan is recovering faster than it did after the financial

crisis. this has been underscored by the latest gdp report. with this, we go to the bank of america global research had. would you agree? izumi: i agree. i think the covid shock has been an exceptional shock and is resulting in an exceptional recovery. the key difference is we went into this crisis with the global economy having nothing fundamentally wrong. there were no excesses in the financial system and nothing blew up. what we are noticing in japan is we had a strong run in cap x. that has helped result in those

punchy growth numbers in the fourth quarter. kathleen: punchy indeed. we are going to put up a chart to underscore a powerful point. after being down 32% in the second quarter helped in part by the consumption tax hike, we get about 23% gain, nearly 13% gain, can this continue? not at that case -- at that pace, but can this positive growth continue? izumi: i would argue about the worst of the crisis is over. back in april or may, we had that severe shock on the supply chain which affected manufacturing and the consumption side. in the near term, the first quarter of the year, we are probably going to get another negative growth print because in

december, we had a worsening of the coronavirus and that necessitated a state of emergency in january. so i think we are going to get a negative growth number but we are seeing cases peek out and that should allow a gradual recovery. with capex till growing, japan will continue recovering in 20 to anyone and 2022. -- 2021 and 2022. haidi: how much of a boost could it get from the olympics? izumi: we have always said in terms of a boost from the olympics, historically that has been concentrated in the long run up where we have the infrastructure buildout. i think where the olympics matter is on sentiment. if we do have any problems with it, it will affect consumer

confidence and health stash and household confidence so i would worry on the effects. haidi: we have a question as to whether it can sustain above 30,000. does this way into the thinking at all? they don't want to derail that but they don't want to be helping it sustain unsustainable levels of the market either. izumi: i don't think the doj is concerned about excessively frothy markets. we are currently working on a review of all these and they will probably address, re-examining how much -- i think the conclusion is the equity markets don't need as much support as they needed at the

start of the crisis. but i think they are content to keep the policy margins in place and they are talking about trying to demonstrate ways in which they could cut rates further. we don't think they are going to do that in the near term. we don't think they will be productive. but i think the bank of japan wants to demonstrate it's not out of options. kathleen: it does underscore the whole since that we aren't going to change our etf buys and maybe we can cut rates more, but the vaccine rollout -- does this start shifting for the boj? izumi: they have had a bit of a roller coaster. then we had the worsening of the covid third wave and the economic outlook looked a bit more bleak a month ago and now it looks slightly better with the fourth quarter gdp numbers,

so i think it is a game day decision for the bank of japan. the markets are doing well and they have less of an incentive to have to go devilish. haidi: the global research had of bank of japan. staying on a pandemic -- why the pace of the vaccine rollout is crucial to the recovery. he began discussing mario draghi's impasse on it. >> mario draghi was stressing in the last years leading the ecb one clear point.

we have a monetary policy without a more coordinated fiscal policy and what we decided after the pandemic is a common fiscal tool without a president for the european union , so we have an opportunity to go further in this message that by the way christine lagarde is frequently sending that a common monetary policy needs to go hand-in-hand with a more coordinated fiscal policy. >> are you comfortable with prospects that enough people will be vaccinated not to have to lower your forecast? >> of course this will be crucial because in our forecast,

we see growth coming again in our economies in the second half of this year and this is strongly connected to the rollout of vaccines. we see a 3.8% growth this year and the base is containment measures still around all european countries, including the u.k. thanks to the vaccination. we have a very challenging goal which is 70% of vaccination at the end of the summer. we faced some problems of production capacity and we are dealing with these problems. until now, we distributed 33 million doses of vaccines but we

have to do much more and we will do much more in the coming weeks. haidi: that was the eu economy commissioner speaking exclusively to our colleague, francine lacqua. tune into bloomberg radio to hear more from the big newsmakers and get more analysis from the daybreak team, broadcasting live from our studio. you can listen via the apple or bloombergradio.com. plenty more ahead. stay with us. ♪

haidi: let's did a check on consumer headlines -- parler is back online -- amazon's cloud units pulled the plug on parler. it's not clear which service provider is now hosting parler. london has become europe's busy -- busiest venue for ipo's -- more than 180 million dollars was raised in its latest funding round. bhp reported rise in profits after record production in a straw you helped cash in on price gain.

up from the preceding time but it was slightly below analyst expectations. bhp will report a record dividend of one dollar and one cent. let's move on to what stocks you should be watching and go to sophie cameroon in hong kong. sophie: yoshi noya has worked to extend the japanese food trader -- 50 stores planned in the long term. keeping an eye on medical supply makers on the back of airport the government will increase syringes production. and dentsu reporting a record net loss on overseas operations in the fourth quarter. haidi: coming up, is china's cinema industry don't sing back?

-- bouncing back. plus caps on theater capacities. the imax china ceo joins us in the next hour. and cautious optimism on the equity markets. this is bloomberg. ♪

kathleen: welcome to daybreak asia from bloomberg's world headquarters in new york, i'm kathleen hays. haidi: and i'm haidi stroud-watts in sydney. our top stories this hour -- asia looks set to extend gains on their longest winning street in 17 weeks. that to climb 30 -- the dk set to climb to 30,000 for the first time in three decades.

in texas, a storm has triggered rolling blank out -- rolling blackouts as wpi futures search. singapore may offer support after covid-19 triggered the worst performance since independence and is set to lay out a third budget deficit. imax had its best opening weekend with sales up 45%. we will be joined by the imax china ceo. let's -- kathleen: let's catch up with quotes going on in the trading day. sophie: hong kong markets come on later today but china and hong kong staying on lunar new year break. after topping 30,000 for the first time since 1990 when the asset bubble in japan started to burst. the rally may be overheating.

while sentiment is improving, we could see further yen weakness. the aussie-yen could be on a path to 84. let's turn to south korea and see what is going on there. keeping an eye out for life on a fourth cash handout with the finance minister to attend parliament and local media reporting south korea has increased buying vaccine. and earnings very much in focus in australia. bhp rising after its interim dividend announcement. the aussie dollar trading at a one month high. u.s. futures nudging higher while the dollar is holding onto monday's decline.

the dollar trading your a three week high ahead of the budget announcement out from singapore today. a cold stop in texas could give a reflation theme a bit more of a boost today. pulling up the chart, extending gains to record highs, global equities had the best run in 17 years and that continues to widen almost 90% of stocks in the all country index above their 200 day moving average. haidi: let's get more including the surgeon reflation trade on the oil story. there are reasons for optimism. joining us now is the deputy portfolio manager.

let's start off with the deep-freeze in texas. oil prices at a 13 month high. is this a sustainable driver for the reflation trade? guest: i didn't quite catch her question. there were some technical issues there. haidi: we're looking at oil prices 13 months high and the supply side disruption and do you see this as being a strong driver of the reflation narrative we keep talking about? guest: we have seen commodity prices across the board with a lot of that tested in anticipation of the biden stimulus. and then the covid vaccine rollout. these are reasons to think u.s. gdp and global gdp is going to inflect a lot higher and that he

comes quite circular. while we expect reflation should return, -- we do think it is real. we do see that we are cautiously optimistic on the markets. kathleen: cautiously optimistic -- does that come from caution about concern over a bubble? how far can this go? jp morgan saying the complacency level and lack of worry now. steven: when i was answering the reflation question, we have seen the fed -- we have a lot of

reasons we think markets will drive higher. having said that, the level of complacency in the market right now is mind blowing. the one that worries me is the highest duration in the market. that means the riskiest points they have ever been. it would have huge impacts on the bond market and we could see extreme volatility somewhere down the track. the most immediate trigger that comes to mind is reflation and we are seeing signs of reflation. how one incorporates that into the investment style is incorporated with low balance sheet and companies that can go.

kathleen: let's get to some of what you do you like -- asia is on your list. alibaba and tencent for the china side. steven: we can make sense of alibaba and tencent's valuations but there are a lot of fine ideas outside of those that are pretty well covered. the reason that company makes a lot of sense is the secondhand car market in china is undeveloped and these businesses make a lot of money from the secondhand car market. currently the car market here is only 17% and in india, the budget points to a lot of fiscal stimulus. the thing that has been lacking,

this budget points to their are reasons for optimism. we are -- [indiscernible] kathleen: duration volatility -- haidi: duration volatility is another thing you are trading on? steven: how do you actually make money if there is a disruption in the bond market? the way we do that is buying exchanges or by things like market makers like flow traders. these businesses benefit from an increased volatility. we have seen it work before and the great thing is you actually get paid in dividends.

we think it makes a lot of sense and we will continue to hold them. in the u.s., there will be a lot of bankruptcies and so we think it makes sense to if nothing else protect the portfolio. haidi: we have been talking a lot about fiscal and monetary policy with stimulus but the effectiveness of that stimulus, does that worry you as a risk? steven: i'm looking further out and i'm worried about predominantly the u.s. and all these firms, what that means is

if they can't increase wages, they can hire as many people as they want. you have competitors out there and it also means they have these zombie firms on their books and so all these things, add to that the aging population and it gets worse. if one thinks about gdp and a change in the labor market -- we are far more attracted to emerging markets which should have far more productivity gains certainly over our investment timeframe which is at least 10 years. kathleen: thank you so much.

we have some breaking news on japan's large media company. you can see they are down 3.5% after reporting a full-year net loss of just about ¥160 billion. goodwill impairment on overseas operation in the fourth quarter. they recognize the charge and also see a total of ¥50 billion of restructuring charges, so some things investors are voting on. let's get to karina mitchell with the first word headlines. karina: blackouts triggered by frigid weather have spread to more than 4 million homes and businesses across the central u.s. in a deepening energy crisis that has already crippled the texas power grid.

the operator of the grid spending 14 states from north dakota to oklahoma ordered utilities to start rotating outages to protect the system from failing amid surging demand. the wto has its first female and first african leader. she becomes director general after the biden administration ended the opposition of former president trump. she has been finance minister of nigeria and spent when he five years of the world bank. she will be tasked with restoring trust in a global trading system roiled by protectionism and the pandemic. here at home, nancy pelosi says congress must create an independent 9/11 type commission to investigate the storming of the capital in washington dc. she says security is already under review to make sure such an incident can't happen again. she says current house and

senate members should be excluded. myanmar is tightening its grip on power, shutting down the internet and making it easier for authorities to make arrests. street protests continue in towns and cities even as the military detained civil servants and other professionals. telephone companies were order to cut internet services to help prevent protests spreading. 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. haidi: still ahead, imax capitalized on the best opening weekend in the chinese holiday by breaking a record of its own. the ceo joins us to talk about the prospects for the year ahead. small businesses could be the biggest winners from singapore's budget. we take a look at what to expect from the finance ministers speech on tuesday as the economy

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kathleen: singapore is expected to announce a third straight budget deficit later as the government tries to support recovery for the worst economic years since independence. what are singapore's big needs now with so many countries hit hard by the virus, what as it meant to them? michelle: it's really an unusual stance for singapore which is used to running surpluses, especially in the first year of a new government. the virus is under control with local cases hovering around zero.

the finance minister will make the case that the job is not done and there's a lot of vulnerable pieces of the economy. it's the worst year for growth since independence and in a briefing yesterday, they mentioned they are still seeing some soft sense in the labor market but targeted will be the key word. they are very open to this trade reliant city state and are very badly hurting. they are also likely to give a special nod to keeping staff nimble and navigating the commercial space while demand has not come rule ring back. economists still see a 4% deficit in the coming year starting with a 14.5% deficit this year. haidi: in terms of potential revenue offsets for businesses, what are you looking at?

michelle: that's the big question. we've heard from the prime minister that they remain concerned that households could get too hooked on aid and they would like to return to a more cautious spending approach. while they maintain hearty reserves, it is quite a gesture to tap into those. where will that be offset? there might be a chunk of investments that will keep the overall deficit low but we are looking at potential increases in taxes as they want to continue to draw the big and end sees. we might get hints of a timeline in the service tax which we are still looking on clarity in the timeline for that. how it might be rolled out in a way that protects the most vulnerable.

kathleen: if you are going to keep reason -- raising taxes, they might prioritize the budget. michelle: some big thinking goals in this budget and throughout the year -- singapore is always planning for the next 5, 10, 15 years ahead. they recently laid out a five-year plan to invest $19 billion more in r&d. they just ranked number two in the world on the bluebird -- bloomberg index.especially as tw businesses into the post-covid economy and get the best tech talent, that is one thing. but we might hear more on their green economy efforts, another area where singapore has tried to be a world leader. haidi: michelle jamrisko there with a preview of singapore's

budget. we have much more to come on daybreak asia. this is bloomber (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? think again! even a jeep can't burst it. give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com.

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haidi: the military in myanmar is strengthening its power using internet blackouts across the country. for the latest, we have our asia managing editor -- we saw protests continuing through monday. are we expecting the momentum to be maintained despite these efforts to stymie the distribution of information? we have a technical difficulty. we will see if we can get them back to continue that discussion. the prime minister of thailand -- set to face a no-confidence vote as opposition lawmakers target his government for

alleged mismanagement of the covid-19 outbreak. let's go to bangkok now. what is at stake right now? guest: not a lot is at stake. they will likely survive the debate and if that is the case, the government still has the majority of the parliament. of course they survived it the first time in 2020 because they have the majority. but for the nine cabinet ministers facing the vote, how much each one gets, we might see a cabinet reshuffle in the coming months. haidi: does this have implications for the protesters? guest: the ruling coalition will

likely prevent any discussion related to the monarchy. that will likely anger the protesters who returned to the streets again after a short hiatus. haidi: let's get back to the myanmar story where the military has been strengthening its grip on power using internet blackouts to put a halt to the protests. hopefully we have you back. we can see the stymieing of information flows in terms of internet walkouts and access to facebook and other social media. is this expected to dampen protests we have seen across the country? guest: yes. that is the militaries hope.

the crowds were a bit smaller but these protests have been going on for more than a week day by day across the cities, tens of thousands of people, so there is a general fatigue that needs to be considered as well. as far as sentiment, there is no indication that is waning at all. in fact, we have seen pictures of more policemen joining and civil servants joining. there still remains to be seen whether the government can consolidate control over the bureaucracy and effectively govern the country going forward. kathleen: it's hard to imagine what the endgame is here. a tweet from a u.n. special rock on tour says the generals declared war with a late-night

night rate and more and say that these are signs of desperation -- attention generals, you will be held accountable. are you going to lock down every person in the country protesting? daniel: i think they want to wait out the protesters and try to get some semblance of normalcy. they have already said they are going to hold an election at the end of the year which -- they have already said we are not going to hold onto power forever. they are going to hold out so a model like thailand where they have borrowed some parties and try to carry on an election where they can ultimately win and have that be accepted by the international community like it is in thailand for the most part.

that is the endgame. whether they will get there remains to be seen. it still precarious. kathleen: it certainly sounds that way. thank you for joining us to talk about myanmar. let's get on to some breaking news from the bank of japan member who says the boj will continue its policy. they have a super easy accommodative policy. the talk has been that they might be trying to figure out how to make it more accommodative. will they make a more changes in their buying policy after the nikkei tops for the first time in many years. he says the virus is having a major impact on the overseas economy and says nations don't need to conduct the same policies.

this is something we will be watching a little more closely but clearly a dovish message there. plenty more to come on daybreak asia. this is bloomberg. ♪

karina: this is daybreak asia. the world health organization has cleared astrazeneca upon vaccine for south korea emergencies. it will help speed up inoculations in developing countries which has lagged behind wealthier nations. the approval allows the shot to be administered to adults over 18 but questions remain over its ability to fight new strains. singapore may offer more budget support for its economy after covid-19 triggered the worst performance since independence. the traditionally conservative

city state is expected to layout a third straight budget deficit despite being passed the worst of the pandemic and with a spending shortfall narrowing. the plan may result in a deficit equivalent to 4% of gdp. the wto has its first female and first african leader. she becomes director general after the bite and ministration back to her and ended the opposition of former president trump. she has been finance minister of nigeria and spent 25 years of the world bank. the race to mars sees the united arab ameren's currently leading, publishing images of the planet as it spacecraft arrived. it shows the north pole and be planet's largest volcano. it reached mars last weekend will orbit for some time before

attempting to send a lander to the surface. nasa and china are also about to reach mars. 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: we are getting the minutes from the rba meeting. they extend the bond buying program as well as flagging expectations that rates would stay low until 2024 or possibly longer. the central bank saying they expect significant support but that it is years away from meeting its inflation goals. also that the program lowered the interest rate and contributed to a lower exchange rate. we have seen high-strength when it comes to the aussie dollar and we are on a third day of gains.

the aussie dollar been noticeably lower and also talking about lending standards and concerns about deterioration saying there are few signs and it would be premature to consider withdrawal for monetary stimulus. let's take a look at how the markets are reacting. sophie: a little surprise in the meeting. the aussie dollar is buying that level, it has been a test for the currency. while it is holding a three day drop, you see that nikkei build gains above 30,000. it's helped along by a strong outlook for earnings and we see japan's new economy shares in

tokyo this morning, sony on the rise -- these -- switching out the board for a broader looked as u.s. futures edge higher while treasuries are losing ground. we saw the 10 year yield rise for basis points top 125. this ahead of the weeks -- auction of early year. the reflation trade remains focused given the push higher with stocks reaching post covid highs. this is cold weather in texas. kathleen: traders in hong kong return and our markets editor, kevin keansburg joins us with a

preview of the session. do you have a lot of bulls telling you the year of the ox is good for the bull run? guest: the hang seng index ended and is up 11% for the year. it's really saying something considering how long it has been in recession. first because of the test and then the coronavirus lockdown. the market itself is in good shape and we have southbound buying we were waiting to resume when the mainland markets open. we expect that to continue once they reopened later this week. haidi: are we expecting to see a benefit with the easing of covid

restrictions this week? guest: most definitely. they've done very well, up over 50% on anticipation of easing dining restrictions. books cannot eat in at restaurants and that is being extended until 10:00 and we will wait forward from officials today or wednesday but those are two of the big names that have had big-name moves on hopes of easing restrictions. kathleen: thank you kevin kingsbury joining us from hong kong. we've got breaking news. we have been talking about it throughout the show. the texas deep-freeze hitting the power grid and now u.s. grid operator saying the demand nearly exceeds supplies. it came unexpectedly starting

with texas. it's not an area where you see this kind of cold but in the southwest, the outages have spread and now it's a u.s. midwest operator urging conservation to avoid blackouts. this is something far from abating. we are expecting an extra cold day in the region and people are going to continue to consume power and that's why we have these outages. you can see what it is doing to energy futures. nymex crude up, brent crude up, reform related gasoline futures up 5.5%. coming up, a record box office in china over this years lunar new year holiday led by the film "detective chinatown three" set to the highest grossing china --

chinese film ever. we will speak to ed winter and about the numbers and the outlook for china's movie market. this is bloomberg. ♪

kathleen: imax had its best ever opening weekend with sales up 45% compared to the same time in 2019. with china's box office set to

return to near pre-pandemic highs, the world's largest movie market is becoming more attractive and more tricky for studios as china pivots to local language films. let's talk to edwin tan. first of all, congratulations on a great weekend. one of your movies leading the pack. but i want to start stepping back. if china is coming back, our movies done forever after the pandemic? no one will want to sit in movie theater. is this a sign for the movie industry globally? edwin: i think if there was any doubt that people would go back to the theaters, i hope last weekend ended those doubts. the weekend box office set so many records -- the industry set a new record for chinese new year, 30% higher than the previous high in 2019.

and as you mentioned, the imax set a new record, 45% higher than that of 2019, grossing close to 25 million u.s. dollars. last friday, we saw more than a million people come through the doors of imax in china. this is a global daily attendance record for imax. kathleen: the numbers speak for themselves. this new movie, d.c. three leading the pack. in terms of content and what people are looking for, this is a guideline for other moviemakers that want to hit the chinese market? edwin: you can see there is pent-up demand post-covid and over chinese new year, we had to remove the plants and two of

those three movies with -- are shot with imax cameras. detective chinatown three has indexed more than 6% from total screens in imax china. this movie is the largest weekend box office. i think our strategy of working with top directors and producers to inject more into film to see what chinese movies are. haidi: we have seen a big slump still continuing. overseas receipts are down something like 65%. longer-term competition from streaming platforms like disney plus and hbo max, is that a concern for the chinese market or is it different there?

where is that you are concerned about the streaming market taking market share? edwin: i think the markets are different from country to country. i think -- i don't think streaming will be a major factor here. but it is covid where people are staying at home. but from our box office results, you can see once they are able to come out of the home, it's a more differentiated experience and it is the premium imax experience they are after. haidi: have the restrictions for social distancing change the way people go to cinema or will there be semipermanent changes given concerns about the vaccine rollout and chasing vaccines for the next variant when it emerges? edwin: i'm sure the vaccine

rollout will be helpful, but for us, the majority of us are used to wearing a mask and getting our hands clean and there is capacity limitations at the cinemas in china at 75% at least. in the meantime, that's still part of the whole experience and people are used to that and that is in effect in the cinema when you are able to get out of the home. haidi: what about approval for new films in china? there has been a limitation on foreign films that can access the market. is there the hope there will be more foreign titles or is the focus going to be on more locally produced content, given that is where they demand quite clearly is? edwin: currently, there are more

local language titles then hollywood has announced at the middle and end of 20/20 one. with regard of entry into films in china, i don't see that changing in the short-term, but definitely there can be some negotiations going on. kathleen: in terms of where this industry probably is going, imax has had its special way of making movies and presenting movies for a long time. what is the next wave to ride in china and the rest of the world? edwin: the local language industry has seen a greater investment into film, and at the same time, our strategy has to be working with these producers and directors to inject more quality into such films. in the short run and mill run, you can see with the

popularization of films and more imax films, this will definitely help imax positioning in the market. kathleen: thank you so very much. now we are going to take a look at the energy market, the u.s. energy crisis has deepened. 4 million people now are without power. it is something we just noted -- texas spot power prices are hitting 9000 cap at the southern hub and we see the midwest grid operator urging conservation to avoid blackout as the manned nearly exceeds supply. look at this chart -- it's something -- showing the power grid operator, the system load has surged through 66 gigawatts and look how quickly that happen. this is not a natural disaster

but it is a storm unprecedented almost for this region and now we can see the reaction. markets reacting as oil prices ride -- oil prices rise. this is daybreak asia. this is bloomberg. ♪

haidi: tesla set to be closing in on a deal to make vehicles in india for the first time. this opens up a new opportunity

for growth in china. katrina nicholas leads her coverage of the transport sector in china. what we know about these plans and is it that they want to replicate the success story they've had in china? katrina: i think that would be one of their aims for sure. according to the minister in india's south, tesla has been negotiating with officials for six months and is considering a car assembly plant in bangalore. they even have plans to set up an r&d facility according to people that have asked not to be named. it has said tesla is focusing on bangalore because this is a place that has shaped up to be a hub for ev's in india and has a lot of aerospace talent which is applicable to the sector as well. kathleen: we know electric vehicles sales make up less than

1% of sales in india but i assume there will be exporting here. what has tesla said about this so far? katrina: that is what analysts are saying -- that they will use it as a base to export to other countries. tesla has been silent on the issue. but ceo elon musk all but concerned tesla would move into india when tweeted as promised to a report that it was in talks to open possibly even a factory. haidi: thank you very much. -- kathleen: thank you very much. jaguar is reinventing its line with its -- getting rid of its internal combustion engines for years from now. sherry velour spoke about the race to electric --

electrification and whether jail are is lagging behind. >> you can see jaguar was behind . at the same time, it is a vision of luxury by design. we have a strong factor of sustainability and that's why we call it luxury by design. this is the vision for the business and for the brand and as such, the electrification of jaguar should show up by 2025 and the land rover portfolio by the end of the decade. it is quite high but we have the technology and know-how to do it and enjoy it already and we know what is the journey. the important factor is we are

at the same time creating a huge simplicity in our platform architecture and that is going to help to make sure it is on time. >> help us understand what is happening to some of your production facilities. are you saying that facility is no longer going to make vehicles after a certain point and what kind of use will you find for it? >> it is clear we are going to continue our work until the end of life of these vehicles and it is clear as well we want to use all of our facilities for the new vehicles to come and that is why we are exploring always to -- we are pursuing valuable

activities over the midlands and the u.k. and that's why we have a significant opportunity to reorganize and restructure and transfer these activities into a possible repurposed thing of castle bromwich. we make things in a very efficient manner which is good. >> what are the sorts of activities you might do there and what your might vehicle reduction their seats? >> the new jaguar will come by 2025 with the renaissance of the jaguar brand. but we have activities like the special vehicle operation which is very valuable, we have very much a high appetite from our customers for the bespoke

tradition of our cars and this is an offer we can envision to move into castle bromwich. haidi: the jaguar land rover ceo. let's get you a check on business headlines. record iron ore production in australia help to cash in on price gains. that was still slightly below analyst expectations. bhp will pay a record dividend of $1.01. reports from london say an ipo next month -- though the date may change. the amazon-backed firm has grown since covid-19 as customers switch to home delivery. london has become the busiest ipo venue in the last year as firms benefiting from the pandemic move to public markets.

let's take a look at the story when it comes to energy prices. we continue to see oil trade near a 13 month high as blackouts caused by the freezing weather across texas. oil up about 1% at the moment, gasoline futures up 5.5% and we are seeing it play out when it comes to national -- natural gas prices. wti will it hit $50 next? taking a look at a dramatic situation as market fundamentals looking strong to push the rally forward. all of this feeding into the reflation trade. at stake a look at how trading is faring. what are you watching? sophia: when hong kong markets come back online, we will watch reaction to news that this city

plans vaccination with the first batch of the on tech vaccination arriving by months and. travel agencies reportedly can apply for subsidies. a major shareholder cut its stake in the company after a flood by triggered by an investment that in the company. we are keeping an eye on chip-related names after the ceo of gold foundry says the semi-conductive -- semi conducted a -- semi conductor shortage is set to be settling. kathleen: coming up, what does the outlook for global travel after the lunar year holiday with the -- with conrad clifford.

that is it from daybreak asia. our markets coverage continues as we look ahead to the start of trading in hong kong. this is bloomberg. ♪

♪ >> it is not :00 a.m. in beijing, shanghai and here in hong kong good morning and welcome to "bloomberg daybreak: china open." counting down to the reopening of china after the nuclear test lunar new year break -- after that lunar new year break. in texas rolling blackouts. oil hitting a 30