♪ haidi: good morning. we are counting down to asia's major market open. kathleen: welcome to "bloomberg daybreak: asia." our top stories this hour, prime minister scott morrison is among the first to receive vaccine in australia. the u.s. faces another grim milestone, about half a million covid deaths.

bitcoin market value topping a chilean dollars for the first time, elon musk admits the price does seem a bit high. oil is on the slide as top producer spar over strategy. russia and saudi arabia again on opposite sides of the output debate. haidi: let's take a look at how markets are setting up in this new trading week. sophie is in hong kong. sophie: in australia we are entering the last week of earnings. lb share markets gaining .2% with bluescope in focus and the aussie dollar holding at about 78 after boost last week, a commodity gain of copper joining to a 2011 high and the aussie 10 year yield gaining adding nearly 10 basis points this morning. and bill evans sees on .9 by the end of 2021. offshore yuan holding at 645 after china kept steady on loan

prime rate and new york crude opening to the downside creeping below 59 plus a barrel off by .7%, after issa retreat from the most overbought level since 1990. -- after we saw a retreat from the most overbought level since 1990. haidi: u.k. prime minister boris johnson expected outline how the national coronavirus locked on may be lifted over the coming months starting with schools reopening by march 8. let's cross to bloomberg editor ian fisher for more. walk us through this u.k. roadmap to reopening. kathleen: there probably -- they probably are not going to meet their vaccination targets? ian: the u.k. obviously not hit hard, the worst in europe, but has been highly successful in their vaccines despite the difficulties. and they have improved to the

point where it feels it is time to reopen, or start to reopen and johnson has a lot of political pressure to do so in parliament and elsewhere. today he said schools will reopen starting march 8. and he is going to start opening , allowing other steps, you can meet someone for a coffee or have a picnic, that sort of thing. then he is going to expand out from there. haidi: this comes as the u.s. is approaching that 500,000 fatality mark for covid-19. president biden made this the top of his policy agenda going into his presidency, right? have things changed for the more optimistic as we near that number? >> yes, things are more optimistic if you compared to the 400,000 mark right before

joe biden took office. the rates of fatalities and cases were roughly three times as high. that is not necessarily due to joe biden, there was a holiday surge going on then. but he has really helped, to the national strategy, he has really consolidated the vaccine plan, and helped boost the amount of vaccine coming out. pfizer thursday said it would double its production. but, at the same time we have these variants. so it is considered a race between the variants and the vaccines. at the moment, many people are optimistic the vaccine and immunity from people who have already had it, people who are

very good about social distancing, may win this time. we are at a much better place right now. kathleen: this story on pfizer. an israeli study, the pfizer beyond tech shot stopping covid spread seems important. in this country some people want to wait for the moderna shot because their trials did track the transmission of the virus after you have had the vaccine and it is over 90% effective and pfizer did not. what is going on with pfizer now? ian: well, the pfizer study as you said was important, in israel for a number of reasons. i would say three. the first was the one that you would expect, it is highly effective against the illness and 99% effective against death. israel, the country that has had

the highest rate of vaccinations, has become a laboratory for pfizer in particular. so that was important. the second important thing which was very much up in the air, was the extent to which a vaccine could prevent infection from one person to another. in other words, you could get the vaccine, and the question was, could you infect someone else? and these results showed it cut it 90%. the last thing is, most of the people who were tested had the u.k. variant, which is spreading in the u.s., so that is another piece of good news. haidi: with merck editor ian fisher and york with the latest. -- bloomberg editor ian fisher in new york with the latest. australia's vaccinations underway. let's get to vonnie quinn with first word headlines. vonnie: iran offered a

last-minute compromise to international atomic inspectors but stopped short of completely curtailing their monitoring powers. tehran threaten to shut down investigations at nuclear sites following u.s. and european plays for iran to give diplomacy a chance. the biden administration has said it is willing to meet with iran. top oil producers saudi arabia and russia are heading to an opec plus strategy meeting and debate. riyadh wants members to be cautious about production while moscow still wants the group to increase supply as it sees the market firming. opec and allies are withholding seven alien barrels a day from global markets. india is turning to colonial legislation to attack far protests amid claims demonstrators are engaging in sedition. a 22-year-old campaigner in blank or -- in bangalore last

week for sharing comments like climate activist greta thunberg, the british laws allow detention without fail. dot plots without bail. -- detention without bail. protesters vowed to step up opposition to the military cool and holder biggest demonstration monday as the army vows to rein in popular dissent. -- military coup. private banks are already shut an atm's are running out of cash. global news 24 hours a day on air and at bloomberg quicktake. i am vonnie quinn. this is bloomberg. haidi: let's take a look at movers in the early start of australia's trading. sophie: macquarie group shares gaining 3% this morning as it

listed its profit outlook seeing earnings increasing by 5%-10% on last year, as the power demand picture is seen boosting power demand services. i want to show you what is going on with refiner ample, on its annual loss but it is says it's on track to deliver a 195 aussie dollar ebitda uplift. the next mover come a chorus, shares track lower as its 2020 went up into his toward the -- ebitda for the lower half of its range. cost or group this morning, a pickup in shares for the company, on the back of its results. we have upside moves nearing 9% this morning on its earnings report and dividend announcement. switching out the board for another mover to watch in sydney. bluescope steel losing ground even though it does see and second-half underlying ebitda

750-830 million aussie dollars. we do have an uncertain arc it outlook and bluescope steel -- uncertain market outlook and bluescope steel talking about the china market outlook. kathleen: the bluescope ceo joins bloomberg in a couple of hours to discuss those results. don't miss that interview. up next, us chilean carpets have their mojo back as they look to capitalize on a v-shaped recovery -- up next, australian corporate have their mojo back as they look to so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down,

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kathleen: australia's corporate's their mojo back, says a new survey from deloitte that finds more a feeling optimistic in an economy that is increasingly showing a v-shaped

recovery. let's bring amp capital's shane oliver into talk about it more. let's start with the vaccine rollout. it is a moment we see around the world. scott morrison, of course, taking the first, for actually the second shot after a world war ii survivor, right? so, a lot of drama here. what is it me now for the economy, which does have a lot of momentum. but a reserve bank of australia has big challenges ahead. >> for the economy, we are seeing a v-shaped recovery of the almost 900,000 jobs lost around april and may, 93% of jobs have been recovered. we are saying sharp recoveries in business and consumer confidence as highlighted by the deloitte survey of ceos.

a critical turnaround and it has been aided by stimulus in australia, low interest rates and better control of the virus. we don't have a lot of community transmission of coronavirus in australia. what the vaccine does is provides confidence that reopening in the economy can continue. and at some point that by early next year we can reopen international borders as well. the reserve bank says, fair enough, a good recovery, but we have a way to go yes. even before coronavirus we have the wage growth and low inflation and they want to see inflation up at higher levels, so they are going to kick the pedal to the metal longer, i think for longer with low interest rates. good news on the economy but it is not going to necessarily sway the reserve bank. kathleen: we were just showing the chart of the australian bond yield spiking, the 10 year.

we know the currency remain strong, but look at that, the move up even since the reserve bank of australia moved ahead, extending the quantitative easing, until autumn. you're happy to see the vaccine rollout and stronger economy and now you have rising yields and you have to keep buying bonds because you do not want get lot to let your currency get stronger. >> [laughter] that's right, you have to going. if the reserve bank were not buying bonds, then bond yields would be higher, and the australian dollar would be higher. so that is why the australian bank feels -- the reserve bank few would be it is keeping the aussie dollar lower than what would have been the case otherwise and that i think is the key in all of this. many the aussie dollar -- the

aussie dollar oyster goes up when things improve. -- the aussie dollar always goes up and things improve. but it can slow the pace and that is why i think they will keep very easy monetary conditions and keep buying bonds until he get more confident. and we are going get stronger wages growth and yes we are likely to see a pickup on inflation and that few months in australia like we would see in the u.s. up to 3.5 or 4%. just like the fed would say it is transitory, i think the reserve bank would say it is well. it is a function a very low prices a year ago, the deflation of year ago dropping out, oil prices and depressed demand and supply of goods. but unless we see wage growth up it is hard to see it sustained and that is the key for the reserve bank. haidi: where is the tolerance level than? do we start preparing for the

likelihood the aussie and other central planks -- central banks will start pushing back against letting inflation run? >> yields keep rising the pressure is still there. an economic recovery investors switch out of bonds but save haven into shares of other assets, so that is quite normal. when you see recovery you see a pickup in borrowing so you see lest savings and it is natural when borrowing costs go up. i think at some point since this is occurring rapidly, markets go into a bubble ultimately that will pull bond yields back down. providing the pickup in inflation we see of the next few months turns out to be transitory i think the reserve bank and other central banks like the fed will just walk through it. if, alternatively, there are signs inflation is feeding through that starts to pick up in headline inflation and underlying measures of inflation are rising while wages are picking up, then it will bring

forward the tightening of monetary tightening. -- the timing of monetary tightening. but that is the less likely scenario. i think rba and fed officials walk through this and we still have a long way to go and conditions are far from those for monetary tightening at this point. i do not see them accelerating over bond buying, i think that is unlikely. haidi: cfos in australia, 70%, a feeling optimistic and it has been an good earnings season so far, particularly for the miners, and a super cycle for commodities and demand is still strong from china. at one point to we see this filter into optimism for us chilean socks? what -- four australian stocks? what is it about the asx that makes it comparatively still unloved? >> that is a good question, i thought last year was clear the

aussie markets did not have pandemic fears the u.s. market had and therefore i thought this year because of the cyclical exposure of the aussie chair markets this would become a relative outperform her and that is still my view. so far it does not seem to have happened. there has been excitement around earnings in the u.s., revised up dramatically, particulate the most recent reporting. the expectation going in was for 90% at it has turned out to be -- for a 9% drop and it has turned out to be a 4% rise, 12% turnaround. in australia we were looking for 21% earnings growth and now that is running on early 3% or 34% -- 33% or 34% so you would think the australian market would perform better. the our phenomenon i find hard to explain but i think eventually investors will say yes, the algae market is a

goodbye, relatively -- the australian market is a good buy, cheaper relative to the u.s.. it does not have the volatility of tech stocks and it will become a relative outperform her and that i think this year the aussie market will outperform the u.s. market this year. haidi: what is priced into outlook prices already and what is your portfolio look like in six months, where you have these two elements when it comes to vaccines? maybe the broader macro picture is not meaningfully different? >> i think the vaccine is largely priced in, particularly in australia. it has an impact but it is marginal. the aussie economy has already reopened, you can go back to life pretty much as normal with little fear of getting covid in australia, in contrast to the u.s. and europe. the vaccine is not going to make

a huge difference just add more confidence, cream on the top. so i don't think it makes a huge inference but reinforces the recovery trade. in terms of portfolios, cyclical stocks that will benefit from recovery, material stocks, mining companies are building material companies, consumer discretionary stocks the biggest upside surprise and reporting has been retail, has done fantastically well. industrials, and also banks are doing pretty well. thanks, traditionally, performed strongly when bond yields rise, leaving are not. -- believe it or not. the other thing is the banks no longer need the huge provisions against default and so provisions are starting to be wound back and they are starting to raise interest and dividends again. haidi: great to have you, shane oliver.

next, the bitcoin drama roles on with the currency reaching $1 trillion in market value for the first time but elon musk says, prices do seem a little high. this is bloomberg. ♪

>> what tesla did, why was tesla makes six times last year? because retail cap buying it. why is bitcoin where does? retail keeps buying it, another form of the same thing. gamestop, bitcoin, tesla. >> a strong take onbitcoin''s meteoric rise, at another record reaching $1 trillion in market

value for the first time ever. that is leading some of its biggest backers in a state of wonder, including elon musk. he tweeted this. prices do seem high. in response to peter schiff, a skeptic. we are joined by our cross assets editor. there is never a dull moment in crypto land, joanna. where to next after another milestone? >> this is pretty amazing and elon musk keeps talking about bitcoin and other cryptocurrencies, and prices a bitcoin went over 58,000 over the weekend. it is pretty amazing, it has doubled in 2021 so far, and people are thinking, if people like jan musk are interested in it, that will get more money into the asset -- people like elon musk are interested, we'll get more money into the asset

class and this prices higher. but they are up an incredible amount so far. kathleen: people are asking after elon musk made his purchase for tesla, it is a small part of our portfolio, and bitcoin is better than cash, so he downplays that. people have said, who is next? apple, what other fortune 500 companies are s&p 500 companies, may start doing this? >> yes, where there is talk about some tech companies, apple or alphabet, where it might fit in. some have said it might make sense for finance companies that need to hedge for the possibility of cryptocurrencies and decentralized finance taking some of their business model. so you could have some. but people managing corporate cash tent you want to be conservative with that. and cryptocurrencies still are quite volatile, so there is a big risk of putting it on the balance sheet.

haidi: our cross asset editor join center. -- joanna austin's are. -- breaking news, the faa offered -- ordered an investigation. that boeing 777 operated by united airlines making the emergency return to denver international airport on saturday, after engine failure that showered large pieces of debris on a city suburb. no one was injured but incredible pictures, particularly where you are looking outside your window and seeing the engine on fire. we are hearing out from the fa that after consultation -- the faa, after consultation with aviation safety experts the are doing an investigation of the boeing cripple the pratt &

whitney engine. -- equipped with the pratt & whitney engine. the u.s., and south korea have planes and united airlines is currently without type of engine in its fleet. coming up, vaccination given to health care and quarantine workers. ♪

anchor 1: this is daybreak: asia i am molly quinn. the united states is nearing half a million coronavirus debts with doctors saying normal lives may not return until 2022. anthony fauci spoke, saying it will be a historic but terrible moment. covid-19 cases and hospitalization numbers are falling sharply, u.s. coming out with 16,005,000. israel offering the first

real-world indication that vaccination will curve covid transmission. almost 90% effective at preventing let confirmed infections. israel has given more vaccine shot per capita than anywhere else in the world. hong kong and singapore have resumes talks over a travel corridor and say they will release details when they are ready. the south china morning post says the two countries are discussing extra safe measures although it is to save -- early to say when the bubble may begin. it was postponed after a resurgence in covid cases in hong kong. taiwan expects its economy to this year as global chips demand boost exports. gdp is seen expanding by 4%, significant higher than the 3% forecast last year. taipei is also doubling its estimate to about 9.6%.

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: australia's covid-19 vaccination program is underway. the prime minister was the second to receive the shot. this comes amid a rise of vaccine hesitancy in australia and and the vaccination. let's bring in an epidemiologist . you have seen the pictures of some of the protests over the weekend. pretty small in number. we also have the situation at the australian open tennis where people booed dimension of the rollout. is vaccine hesitancy something you are worried about? or is it a small portion of the population? guest: i think the anti-vaxx is tiny in australia.

there is a group of people that are vaccine hesitant, that is nothing unique to australia. what is a bit different in australia than elsewhere is the experience with covid-19. in other jurisdictions they have seen people become ill, people dying, hospitals being overrun. it is just not the same in australia. what australians are more concerned about his lockdown, being able to avoid lockdown. as things move forward we will be able to see the benefits of vaccination. the ability to open australia up, ability to travel. that over the hesitancy, and as more people receive it another not fired they will be more confident. while i think it is a concern, i think ultimately the vaccine will have broad uptick in australia. haidi: there is also a robust debate about the type of vaccine australia has secured, the bulk

of the population is likely to get the astrazeneca vaccine, with the most vulnerable population being an accolade at the moment with the pfizer vaccine. clearly a less effective vaccine is better than no vaccine, but could this been have managed differently so australia had essentially backed the vaccine that is proving to be more effective, perhaps more effective against the new variants? guest: interestingly enough, aspired does -- australia does have a diverse vaccine portfolio. 10 million people can be vaccinated with pfizer. it also has access to 51 million doses of novavax, both of those are in very highly effective vaccine category. now with a merging from pfizer that it is effective against transmission. the issue for australia is the focus now as you alluded to on

people with astrazeneca. the astrazeneca vaccine has been approved in australia, is also going to be manufactured in australia. that is the large reason why it is going to be the backbone of the vaccination strategy. it is manufactured in australia. i, for two minds about it. one is the focus of being able to manufacture and australia has kind of tied us to this vaccine, which seems to be less effective in general, and thus effective against some of the new variants. what we have seen in other countries that don't have manufacturing in their nation, they have been having to deal with delays and faxing nationalism that makes it challenging to get and administer the vaccine in their country. while i wish that they manufactured a different vaccine, i think having the

ability to manufacture a vaccine in your country is actually one that is beneficial to us. haidi: it's interesting because as you point out, lockdowns have been much more of a problem than widespread cases, high level of deaths. at the same time that does put all of the more focus on vaccine s, but you can get close to herd immunity without vaccines in countries that don't get it. guest: we are extremely vulnerable. what we have seen from quarantine breaches is we lockdown cities. we just are so vulnerable. i think one of the things that is important to emphasize is unless we control covid-19 everywhere, we are all vulnerable. what we are seeing in south africa, in brazil, where you have variants of the virus that

are able to reinfected people that this concept of herd immunity without effective vaccination is not a sensible one. not one that is actually reality. we have to have highly effective vaccines to actually have herd immunity, just becoming infected with the virus is not going to do it. anchor 1: in the future, what does the future look like? more vaccine, you people getting it, but social mitigation. do we continue to do that? is an effective, does it make a difference? guest: what we have seen his it is very effective in mitigating deaths from the few -- the flu. it is also effective at reducing the burden of infectious diseases in our society in general. honestly, i think it would be good for us to take a page off of the asian playbook, when we

are sick we wear masks, and we don't infect others. now in the covid europe, it is strange to -- the covid era, it is strange to think about going into work with the flu and infecting your workplace. it is something that should be baked into our societal norms. our respect for others includes spreading infectious disease to others. i would hope that masks in some form are with us longer-term, and certainly good hand hygiene. what i really would like is to be able to bring people together again and not have to restrict crowd sizes. i am the head of a school of public health, and students need to be together to learn. it is very important for them for social development. it improves their learning, be able to print students together, i would love for that to be part of what we are able to do once we have been vaccinated.

haidi: getting stuck in that lockdown. you can feel that trauma they have gone through, having gone through what they did last year. does something need to change when it comes to hotel quarantine? yes, the circumstances are different, but things keep happening they all come from hotel quarantine. guest: one of the things that other countries who adopt hotel quarantine is to acknowledge that it is airborne. if you acknowledge it is airborne you have to pay attention to what the airflows are like in your hotels, all tend to be this place where you have accumulation of air from various rooms. potentially, that is where the virus can be present and infect others. you have to think about airflow, you have to think about how you protect workers from an airborne virus. having the best possible personal protective equipment for them.

there are hotels that are going to be lower risk, settings that are lower risk, outdoors and have access to fresh air. focusing on those even if they are not purpose built, focusing on settings where there is fresh air, where people don't have to be in halls as much to service the rooms, i think is essential. anchor 1: i think we can only agree with you. thank you so very much. nancy baxter. not to sophie for another look at the markets. reporter: as markets wait vaccine prospects, the bond rep is continuing. off the 10 year yields backing up above 152. west tax on 190 on the 10 year by the end of 2021. futures are lower this after the 10 year top 10 basis it's on friday.

we are seeing little change this morning while began is slightly on the back but. commodities are in the hot seat. you have a gator from material that may top last august which was the best month since five years time. copper jumping to a 2011 height. this as we are seeing tightening supplies on global growth, jp morgan seeing improving global growth, boosting their forecast for 6% this year on the gdp outlook. as we are seeing copper rise, this ratio against gold prices, we are seeing higher bond yields ahead. at the oil patch, we are seeing the rally slow, wti taking back about 59, brent about 53. as you see on this terminal chart, brent signaling that the

market is looking overheated. anchor 1: we are going to stay on oil. opec meets in the coming days, opec-plus that is. saudi arabia and russia are again on opposite sides of the debate. this is bloomberg. ♪

>> we must also address iran's destabilizing buddies across the middle east.

we will work in close cooperation as we proceed. >> have often been created by china or led by china. we must take action to show we have something to set against us. we need to find a way of working together, between allies, but also between members of the un security council, to find common solutions. iran is a major issue. >> hostile states may seek to harm our people and obvious ways, as the russian state did with reckless abandon and saulsberry three years ago. only to collide with the implacable and immovable rock of transatlantic solidarity. anchor 1: those are world leaders speaking at the munich security conference with iran in particular.

iran has offered a last-minute compromise on nuclear inspections, but stopped short of completely curtailing their intrusive powers. that could set the stage for iran to attend opec next meeting. meanwhile, saudi arabia and russia are once again divided. our su keenan is tracking the story. went to we know the differences this time -- what do we know about the differences this time? reporter: the saudi's are publicly urging other members to be extreme a cautious. this despite the fact that oil prices rebounded to one your highest. those in the u.s., trading at pre-covid levels. it did pull back just a little bit on friday, but in europe as well, we are seeing brent crude trade above 65 which it reached on thursday. it has pulled back just a little bit. but it is where it was a little

go -- a year ago. we are seeing russia different from the saudi's, appearing to want to adopt a very different strategy ahead of the march 4 opec meeting, which like the january meeting, will be virtual. moscow indicating it wants to go ahead with a supply increase. the conflicting strategies of the two biggest players create a very interesting scenario. we have seen them conflict before, but there is a difference now. the saudi's are seen as having a bargaining chip. have been making voluntary cuts of one million barrels a day. the issue is, do the opec-plus producers increase production in april. one, they have to decide whether to restore as much of a half million barrels a day, that would be the next step. two, to the saudi's continue to voluntarily cut, and how clear the surplus inventories even more quickly.

observers say there will likely be a lot of bargaining taken place as we count down to that meeting, but they do not believe the bargaining has even started to begin. haidi: in the meantime, that historic energy crisis in texas has really wreaked havoc. what is the latest that we have? su: let's take a look at the national -- natural gas. futures, among other commodities just went haywire in the past week. the physical market for the heating fuel, which is a small and relatively unique world, created a historic trading crisis. if you go to bloomberg, the winter storm boosted demand,/production. what you had was a skyrocketing and the prices of you'll, 300 fold in some cases. power, electricity.

as you can see, never before seen levels. but we are now learning about the havoc that it is cause for traders is that last weekend, they got a notice that because of the volatility, they had to come up with more collateral. last monday was a bank holiday, a federal holiday. many of the traders had to have weekend isis calls -- crisis calls and reach out to european parent companies to come up with margin payments on time. we are told that happened, various different currencies involved, but everything was met. one trader said he has been through a lot of power spikes in the midwest never saw anything like what happened last week. again, a really historic situation. we are hearing from texas, most cities have been able to get their power back after days in the black. the snow is still there. one lesson and the natural gas market is that you really have to pay up to play, as one

veteran says, because mechanisms are in place to limit speculation in the natural gas and other heating, fuel markets. back to you. haidi: su keenan in new york. coming up next to get the latest on hsbc, reinforcing commitments to asia with reports it is planning to return some of its top executives to hong kong. we get all the details. this is bloomberg. ♪

haidi: we are getting reaction to the united airlines incident we saw over the weekend. japan has now part them to ground boeing 777 just for safety reasons. the transport ministry ordering them to ground the 777 planes that they operate following the engine failure. in terms of the number of planes, ministry checks will be conducted and certain measures will be needed to be taken. aa operates 19 planes. we also know that south korea is one of the three countries, including japan and the u.s. that operate these planes in their fleet.

we also separately heard from united airlines, saying out of an abundance of caution, they are voluntarily and temporarily removing 24 boeing 777 aircraft powered by the engines. they currently have 52 of these aircraft in their fleet, 20 for active being removed, 28 in storage. earlier we saw the faa issue the directive for immediate and stepped-up inspections of the bowen 7 -- boeing 777. anchor 1: we have breaking news, a bellwether for experts across asia. i am talking about south korean exports. for the first 20 days of the month, up 16.7% year-over-year on exports, more than 10.6% the month before. let's remember that exports last year, as the pandemic hit, we saw the lowest number down 27.6%

year-over-year in the month of april last year. you can see what an improvement this is, and of course the imports up 24.1% year-over-year, versus about 1% the month before . again, not just what south korea is selling to the rest of the world, remember, the 11th biggest economy, fourth biggest export, it's also that consumers have picked up to. good news and south korea on the economy. haidi: we will take it. hsbc turns out its new strategy on tuesday, overhaul plans upended by the plandemic. it is said to now be relocating some senior executives to hong kong, which would really be reinforcing if you have asia as new focus. fronting us now is our guest. what do we know, it sounds like

a real doubling down or trickling down on the pivot back to asia. guest: this is the latest. likely announced as part of the strategic overhaul tomorrow. these executives that are said to be moving to hong kong from london include the chief executive of wealth and personal banking, the cohead of global banking and markets, and the chief executive of global commercial banking. that would be that businesses responsible for yet -- last year's 2019, 5% of the revenue will be run out of hong kong. this has been a strategy for some time now, basically the growth prospects in china including hong kong. whenever, asia accounts for half of revenues for the bank. they are still in expansion mode even after making aggressive cuts.

the previous restructuring a year ago involved cutting thousands of jobs. they are now planning to revise and perhaps even deepen those cuts. anchor 1: aggressive move. is any of this going to show up in earnings tomorrow? guest: the earnings themselves will not be good. they will probably report pretax adjusted profits, close to half of 2019 levels, $11.7 billion. that is according to the average forecast on the banks website. this is largely driven by soaring debt. tomorrow, really the focus will be about the future, and strategic revisions. he may also signal a commitment to expanding wealth management around the world, particularly in asia. hsbc being a very small player in private banking compared to the likes of ubs, but a lot of

banks are getting into the wealth side of things to stabilize the revenues going forward. than there is the question of the outlook for operations in developed markets like france and u.s.. the ft recorded today that the bank make announce its withdrawal from retail banking in the u.s. bristol has 150 branches. there also questions over germany. haidi: our asian finance editor. let's take a look at some of the stocks we are watching ahead of the opens. reporter: watching vaccine development. astrazeneca plans to produce covid vaccines in japan and will start distribution once approval is given. reportedly eight clinical trial is restarting. watching shares related.

this on a report that apple is in talks with several suppliers, after bitcoin topped $1 trillion in market cap for the first time. ♪

haidi: welcome to bloomberg daybreak: asia. kathleen: asia's major markets have just open for trade. on to our top stories of the hour -- asian markets set for a cautious open as investors assess rising bond yields and the latest virus news. oil slides with top producers sparring over strategy. the u.s. nears half million

covid deaths as israel says the pfizer jab is effective in the u.k. moves toward reopening. the bitcoin drama rolls on with its market value topic a trillion dollars for the first time. elon musk admits the price does seem a bit high. haidi: let's take a look at the markets as japan and korea join the fray. what are you seeing, sophie? sophie: japanese stocks gaining ground, nikkei and topics rising while the yen is on the back foot. jp morgan very much in focus, under concerned the d -- the boj has mixed months. we will see if they can move to contain the pickup we see in the japanese yield. on the board and south korea, we are waiting for lines around the budget. the cost about .6 percent as we

digest the latest flash numbers on trade. the first 20 days, export growth coming in 20% year on year. chip exports rising 27% and on that, we are watching lg can with rocio saying a possible battery partnership could be had with lj can on local media reporting it. so far this morning, we see chipmakers boost the cost higher . let's switch out the board -- all markets very much in focus as the national petroleum we kicking off and crude back above 59 barrels and brent above 63. aussie shares, we see some downside moves there. adding more than nine basis

points after seeing a pickup inc. grow -- in global bond yields. keeping a close eye on the u.s. as we digest the latest moves -- the pboc holding on the weekend. kathleen: our next guest says we have likely reached some sort of emotional top in the market. joining us now is the capital inc. chairman and ceo, brett mcgonagle. bitcoin -- that's what you are referring to, saying when the news cycles are focused on things like elon musk buying bitcoin, when we see the market cap is a trillion dollars, i think two things -- and emotional, speculative top, but that market cap and so many people on wall street, cios all over the place saying if the institutional trade is there,

they are going to buy it, we are going to see more big companies doing it believing it's going to go a lot further. guest: i think it will ultimately go a lot further. it has had good moves recently -- elon musk has been a big cheerleader and from your lead in it looks like he's saying it's a little too top he. maybe he has something we are not aware of. what i think ultimately it will go higher. i'm not trying to throw cold water on the fire by any means. what i think as you will probably see some pullback. i think it will be a by the dip sort of situation and by the higher highs. kathleen: with the chance to watch hearings around gamestop and robinhood on thursday, you wonder is this all speculative or, as there is a campus that

says we enter a new era but because of washington in fiscal stimulus, the stockmarket rally is going to continue in the u.s. and that will boost sentiments around the world? guest: i think that's fair and i think that's right. there's a lot of money in the system, a lot on the sidelines and i agree with one of your points -- there's a new investor class in the market. i think it's younger, i think it is more thematic in nature. i think there is an international wave of new investors coming into the market and i think the market has changed quite significantly. that will lead to the market continuing to rally over time and there's an endless amount of money on the sidelines right now. we will go higher, there will be some tears in some of those trendy stocks we have seen because they can't really hold these levels, but the market will continue to go.

there's no other way to go right now. haidi: it has been a theme over the past few days and weeks -- when do we start seeing the impact of rising bond yields on the various asset classes, particularly as we look at some of the other central banks that might start pushing back against letting the reflation trade run. guest: i'm a believer that inflation in the system right now is more of a fear than a truth. i don't think we are at levels where central banks will need to react. i think if any reaction or if we see inflation creeping up, the central banks are very cognizant of how impactful their words are. i think you'll probably have some soft language around any sort of moves that would be a surprise. i don't expect a surprise. i think we will be low rates for quite a time.

the economies are damaged and are waiting for some sort of pent up demand in trade out of the covid situation, but we haven't seen it yet because it's not happening and we won't see it until we get people moving around and vaccines and people feeling more comfortable about mobility. haidi: we were talking earlier about your relocation after being based in hong kong and greater china for so long. you are now in the u.s. what is the field when you're speaking to investors and market participants about the interest in chinese assets given the last four or five years and the impact on the relationship? brett: that's probably one of the best questions that could be asked. moving back to the u.s. and spending more time here has made me understand how misunderstood china is, especially from the american narrative. i think there is bias that has been in the market for a long time -- we can argue forever why

it exists, but it exists and i think it's a discounting mechanism that needs to be wrought back to center and that comes with people being bigger participants and understanding more and the chinese narrative is starting to be understood. the barriers are being dropped and people are able to move in and out of markets freely and as that happens, the experience will lead to a completely different sentiment and i've talked to you about this for 10 years -- it's the biggest trade. i think china goes up for a long time and it's only a little time and you can put the noise aside and look at what actually happened. haidi: always great to have you even if you are slightly farther away from us. let's get to the first word headlines.

funny -- vonnie: the triple seven aircraft has been grounded after the engine failure over the weekend. the jet will be out of service while checks are made. the faa has opposed emergency inspections of u.s. banks and -- u.s. planes and united's move -- removing 24 triple sevens. iran has offered a last-minute compromise to atomic inspectors and have stopped short of completely curtailing monetary powers. the compromise follows u.s. to give a chancel's of the biden administration has said it is willing to meet with iran. saudi arabia and russia are again heading into a strategy meeting on opposite sides of the debate. riata ponce members to be

cautious. moscow still wants the company and group to increase supply as it sees the markets firming. opec is still withholding 7 million barrels a day from global markets. elon musk says prices seem high after bitcoin surged and reached a trillion dollars in market value for the first time. he was replying to a crypto skeptic who said gold is a better weight than bitcoin. musk tweeted money is data that avoids the inconvenience of barter and says bitcoin is less dumb than cash. 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 vonnie quinn. this is bloomberg. kathleen: still ahead, new data from israel suggest the pfizer shot present -- prevents 99% covid deaths.

canada is vowing to follow us truly a in forcing facebook to pay for news. what that spells for the social media giant. this is bloomberg. ♪ when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $300 a year with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store.

haidi: you're watching some comments being made by the chinese foreign minister while he is speaking in beijing, commenting on u.s. and china ties saying the previous administration under president trump inflicted damage. we will be watching some of this commentary keenly as we have had a cautious start to the relationship with the new biden administration. we heard in the past few days that joe biden signaling a more hawkish line on beijing that earlier anticipated. some of its key appointments of

china veterans and policymakers with knowledge of china coming from the obama administration suggesting he will take tough stance when it comes to the renewed visit to asia. biden setting up his new china task force putting up a new strategy -- we are hearing those lines saying the previous u.s. administration inflicted damage on that relationship. we will continue to bring you damage -- we will continue to bring you the latest on that. we have the first real-world indication that the vaccines may be able to curb the spread of covid-19. new data from israel shows the pfizer shot stops the vast majority of recipients from becoming infected. israel has been a world leader when it comes to vaccinating its population, so what does the study and the data tell us? guest: the data answered one of

the really big questions about the vaccine. that it was able to prevent death but there still was a question of if you got the vaccine, could you pass it on to someone else? in this test, which is significant, it has vaccinated a large percent of its population shows 90% of its infections were stopped. another hopeful thing that came out of the study was that most people in the study had the u.k. variant which is spreading so quickly in the u.s., asia and europe and it has stopped that. kathleen: we hear hong kong and

singapore travel may be back on. what is going on? guest: it seems at the moment -- having the bubble where there would not have to be quarantined from either side, they called it off and suspended it after the cases came up in hong kong in hong kong was quite aggressive about cracking down on this virus. it looks like [indiscernible] kathleen: sticking with the virus, the u.s. recorded more than half a million deaths in the pandemic. john hopkins bloomberg school of public health is confident vaccines will dramatically improve the outlook. >> the effect we are going to

see of the vaccine on highly susceptible populations, the elderly, health care workers exposed to the virus at a higher rate, the effect their on hospitalizations and death is going to be faster and more complete. as we move into the summer, that is when the vaccine rollout will start to affect the total number of cases because as we get into the population, that is when it will be impacting total cases. >> do you have in your head a total number vaccinated that is a tipping point to success? >> every percentage point is going to help us. the real tipping point they say is around 70% of the adult population being immunized. at that time we should see substantial effects on the virus spread. we will see effects before then, so rolling out the vaccine as

soon as possible is always going to help. 70% is the tipping point i have seen it most modelers point at. >> a new study from israeli workers shows a high percentage of her text and from the pfizer biontech inoculation. should the u.s. be expediting getting the first shot into as many people as possible over having two doses available for each of those individuals? >> it is a point of debate right now. i tend to focus on getting both shots in place and the reason for that is we know the second shot does increase the amount of immunity a person has and it's also going to help in terms of the length of the immunity a vaccinated person has. the best strategy going forward is to try to immunize everybody according to the initial and a booster dose. we have to get better at rolling

out the vaccine and dealing with the distribution problems creeping up here in the u.s.. >> when i walked in this morning, john seemed to notice i was ready to bring the gloom. how close are we to indications of a south african version coming in and rendering the inoculations obsolete? >> the south african variant is probably one mutation that is eliminating a small percentage of the immune response the vaccine or infection can provide people. that is not inconsequential. it is something that is on the scientist radar screen come but it is important to know they're still good protection from that vaccine when it has been assessed in places like south africa. so there is protection to these variants and importantly, getting back to hospitalizations and deaths, the effect there may

be even greater because the vaccine may be protecting from that even more efficiently. >> on the level of holdouts, the people that won't take the vaccine in this country? >> i'm seeing the trend go up and more people are accepting of the vaccine as they see the benefits happening coming out there. i'm hoping that's going to continue as we roll into the next phase of the vaccination. >> most important question -- when can we get rid of the restrictions? >> i would imagine sometime in the spring and summer is when we would see the natural reduction of virus cases because of the warmer weather coupled with the vaccination rates going up. at that point, i think you will be good to think about relaxing those efforts. but for the short-term, we have to keep our foot to the ground and make sure we are continuing to get these case numbers to

lower levels. haidi: speaking to our colleagues there -- the johns hopkins bloomberg school of public health is supported by michael r. bloomberg, founder of bloomberg lp and bloomberg philanthropy. coming up, a crucial debate for opec and its allies in the latest on the fallout on the energy crisis in texas. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs

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haidi: goldman getting more bullish on oil again, raising their forecast by $10 a barrel. reaching $70 a barrel, adding up to $75 on the third quarter and this just after they'd already moved forward the $65 forecast for brent.

they are expecting $70 a barrel in the third quarter. saudi arabia and russia once again heading into opposing sides of a crucial debate about supply and demand. su keenan joins us -- to ease or not to ease is front and center for this round of talks. su: what we are seeing is saudi members urging to be extremely cautious despite the fact oil prices have rebounded to one year highs both in the u.s. where west texas intermediate, where it is mainly traded and that pre-covid levels and in europe where brent crude surged above the $65 meaning goldman's previous forecast, so they are coming out with a higher

forecast for brent. anyway, it is above covid levels and russia apart from the saudi's is appearing to adopt a very different strategy. they want the march opec meeting to go ahead and discuss easing the restrictions that exist and increasing the output. moscow saying they very much want to increase production. where we typically see these two major players having different views in the past, what is different is the saudi's are seen as having a bit of a bargaining chip, making bargaining cuts and the issue is to ease or not to ease starting in april, the group has to decide whether to -- increase output or would they continue to

deliver their voluntary cut or deliver them more completely? you can imagine there's going to be a lot of backstage bargaining going on between now and march fourth and a lot of observers say it has yet to begin. kathleen: meanwhile, could be tech -- the texas energy crisis has put some traders in a spot. su: for the traders, take a look at national -- at natural gas futures -- one of the many commodities that went haywire in the past week. it is a small and relatively obscure world. if you go into the bloomberg, you can see the winter storm boost in demand/production and sent fuel prices up 300 fold.

electricity another power sources sword to unseen levels. a lot of the traders involved in natural gas are being told by the exchanges. for some that would have catastrophic consequences. many were forced to reach out to parent companies because banks were cold -- banks were closed. one veteran trader said he's never seen anything like it. everything worked out. back to you. kathleen: su keenan, thank you very much. coming up, big earnings in the commodity space. we speak to australia's largest steel manufacturer following their result.

up next, australia's face-off with google and facebook continues this week with both sides reportedly back at the -- back at the table. dan ives joins to discuss next. it's all coming up here. this is bloomberg. ♪

kathleen: we are getting more headlines from china's state counselor foreign minister. sounds like he is trying to smooth the waters in china. one thing he is asking is for the u.s. to remove unreasonable tariffs. we have paul krugman, nobel laureate in trade who said he thinks it doesn't look like joe biden is ready to do that. he does not want to be criticized for being soft on china. also asking the u.s. not to interfere with internal matters,

urging the u.s. to stop smearing the communist party. he's also saying we have no intention to challenge or replace the united states, so diplomacy through a forum. we will be seeing what comes out of it. you can see hank paulson participating as well and you can see another headline. china is ready to work with the united states with an open mind. moving on, bloomberg subscribers can continue watching it live go and you will find events coming up today and later this week as well as some you may have missed earlier. let's get to the markets with sophie cameroon in hong kong. sophie: asian stocks are mostly higher but consumer staples and health care stocks are the laggard across the region. underperforming the index for the third straight month.

industrials leading gains -- two of the five sectors favored to find the best candidates for inflation tracking strategy. on that reflation story, goldman listing there -- lifting their brent forecast to $70 in the second quarter but with that, brent is looking overheated with the rsi. the bond rout on this monday, you have yields pushing higher above 10 basis points. by the end of this year, you have u.s. yields pushing higher. i want to highlight remarks from citigroup saying that while it's too early to call the end of a treasury selloff, there is some and the -- some sign the end may be near. pulling up the chart on the terminal as asian bond yields have shifted higher, that has

eroded the premium for stocks over bonds. a seven-year low in south korea. this could advocate for evaluations looking top he. bitcoin and focus as well. the market cap of bitcoin above $1 trillion. that has sent asian cryptocurrencies higher across the board. haidi: australia's face-off with google and facebook continues this week. facebook has reengaged with the government after re-engaging tension. joining us to discuss this is where bush security manager of research. this is significant in the sense that once again we see australia being the guinea pig.

what is facebook worried about and where? dan: this hits them in terms of the gut punch in terms of the whole is this model. the way this was initially handled was deafly a black eye for facebook. clearly they are changing their strategy a bit, but it's not just australia. canada and other countries are watching and i think this is a broader issue that we will see with big tech going up against a lot of these countries, not even just the u.s. but across europe. this is something many are watching to see how it plays out in this game of high-stakes poker. haidi: what is your best guest -- best guess as to how this plays out if an agreement is struck in australia, does that reduce the leverage facebook has elsewhere? dan: that is why it is all

poker. if you start to see this cascade across other countries, it does reduce the leverage a bit and they have been adamant in terms of their stance but just like australia is adamant in terms of how they are viewing it, it's almost an old western standoff but it's not just facebook and australia, it has been broader across the board in terms of big technology companies and this could be a cascading effect. that is the broader view -- what if this cascades into other issues? kathleen: if i'm the leader of a country -- and that is why it is so interesting -- scott morrison said he's talking about france and canada -- if they offer to get together, these countries say you guys have made tons and

tons of money, you're still making tons and tons of money at the expense of our news companies and others, you can afford to share some of that, right? do you think that's an argument that -- is this another step that's going to happen for these big companies? dan: i think that's the problem here. the grandstanding gets in the way, political grandstanding in terms of the reality of the situation, in terms of consumers on these social media platforms and the vast majority of digital advertising that happens with the likes of facebook and google. that's why -- caught in the middle are the consumers and advertisers and that is what we saw this week. as this starts to get ratcheted down, we see if there's any sort of compromise but importantly, this is going to have a ripple

effect in terms of how this plays out across the globe and other countries are watching closely. kathleen: speaking of how things play out across the globe, we are looking at elon musk and tesla's investment in bitcoin. bitcoins market cap up to a trillion dollars. what is important about this? so many people are talking about what app will be next? specifically for elon musk, what is the play here? dan: i think it continues to be in line with the dna -- levers in bitcoin, to put some perspective, tesla made about a billion dollars from its bitcoin investment. that's what it made for selling cars in 2020. this is a ripple effect not just

from an investment perspective, but when you look at sammy's, thanks, we are looking at a new system and that is what is spawning here. mastercard and tesla in terms of their recent moves legitimize it and bitcoin is not a fad that's going away. it may get more mainstream but there needs to be regulatory goalposts put in before more dive into the deep end of the pool. kathleen: i want to continue to ask you about bitcoin. in terms of what the ultimate value is, the cio of guggenheim at the time of the last fed meeting late january said he thought it could get up to

400,000. dan: if you look at the upward trajectory, it looks strong. not just from an investment perspective, but blockchain, denny's -- we could start to approach 100 k if we see the supply and demand play out. but it's an indicator with what we have seen as far as crypto and bitcoin. that has started to play out. and we see musk leading that charge. kathleen: thank you very much. great to have you on the show. plenty more to come on daybreak asia. this is bloomberg. ♪

kathleen: u.s. lawmakers could vote this week on president biden's relief package worth one point $9 trillion. the plan has spurred debate. we spoke to paul krugman about what needs to be changed. paul: if you had time and unlimited capacity and let's face it, if there were a political impairment -- local imperative to make good on promises, you might try

something a little more targeted but borrowing is cheap, money is not an object, amazingly in all of this stuff. if you really want to get a lot of eight out the door fast, you want to get these people through six or seven months of pandemic and have the economy poised to make a fast comeback back once it can. >> as you know better than anybody, you were in an interesting discussion with larry summers, former treasury secretary, are we going to put money that is not targeted into -- take it away from things we could be putting money into and put it into plans this year like climate change infrastructure spending that would create jobs? paul: i have enormous respect for larry and will always take him seriously. but i think he's making a category era -- category era --

category error here. but that's not the problem. the u.s. government has vast borrowing capacity and the constraint on doing the things we ought to be doing is not how much money is there and can we afford it, the constraint -- i'm very much for infrastructure and invest in the future, but that's going to be taking place not this year. maybe not even next year, but afterwards. the reasons it might not happen are going to be if people feel you spent a lot of money and it didn't work and the economy didn't recover all that well, which is what happened to obama. in fact, spending on pandemic recovery now, spending generously, it's not competing with a longer run program, it's a precondition for the longer running investment program.

we need to get people back to work and people through this with minimal damage and only then will we be in a position to go through the things larry and i ought to be doing looking past this year. haidi: we know countries like the u.s. and china, the ability to service that jet -- that debt, are you concerned about productivity of debt? if you look at the chinese example, that is the worry -- the effectiveness of taking on that debt and how it is targeted. paul: there's no effective constraint on the amount of debt. we have just barely got positive interest rates on 30 year bonds right now. still negative real interest rates on shorter-term. given the fact the economy will grow over time, servicing that

debt is not going to be a problem. i really don't worry about it. the level of debt is not in my top 10 list of things to worry about, whereas being able to get people through this crisis with minimum financial and personal damage is near the top of the list. kathleen: inflation overheating, the fed may have to raise rates and may be the idea that stimulus could be rethought or redesigned and retargeted -- what do you think? paul: this thing will be over and we can see the end but there is a big chasm between now and then. and we could still lose this thing. if because we are not providing enough aid to people rush back to two much in person contact and we have too much pressure

for premature reopening and then the variant gets ahead of the vaccine, that is the nightmare scenario. there is still a way we can lose this. we probably won't. i'm quite optimistic of where we will be this time next year. but it still a helluva chasm we need to build a bridge across right now. the overheating, this is a very big program and the u.s. economy doesn't have unlimited capacity. it is within the realm of possible, if you do the math, and the math is highly uncertain. it is possible we are going to see some overheating. i think it is going to be minor, but i could be wrong about that. haidi: paul krugman, distinguished professor at the uni graduate center. let's go to vonnie quinn for the first word headlines. vonnie: new research from israel

suggest the pfizer beyond tech vaccine may stop recipients from becoming infected, offering the first real world indications that the vaccine will curb covid transmissions. an initial report says the program was almost 90% effective at preventing confirmed infections. israel has given more vaccines per capita than anywhere else in the world. hong kong and singapore have resume talks over a travel corridor and say they will release details when they are ready. they are discussing extra safety measures though it is too early to say when the bubble may begin. the reopening was postponed after a resurfacing of covid cases in hong kong. taiwan expect its economy to grow the fastest since when he 14 to boost exports. gdp is seen expanding by 4.6 percent, significantly higher than forecast last year. taipei is more than doubling its estimation for export growth to

9.6% from an original projection of 4.6%. india is turning to colonial era legislation to tackle continuing protests. police detained a 22-year-old campaigner last week for sharing comments made by climate activist greta thunberg. she and several others were hit with similar charges. 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 vonnie quinn. this is bloomberg. haidi: protesters in myanmar are calling for the biggest mass rally yet later today with two demonstrators -- after two demonstrators were shot dead. let's get the latest from our southeast asia government reporter, philip heyman. what are we expecting to see today and of course reaction

from the military? philip: hello. protesters plan to hold their largest mass rally yet after two demonstrators were shot dead over the weekend. shops and businesses are expected to close in solidarity with one of the largest supermarket chains to close all of its outlets. be crackdown -- the crackdown -- it's a horrible situation for the economy which is already quite troubled. nearly all private bank ranches have closed and there are worries about cash flow in the country that military has shown no sign of slowing or retracting the way it is currently conducting itself. there are fears it could

continue to worsen. kathleen: how about international reaction to these totality's? is it firing things up? how has myanmar responded? philip: there were two fatalities over the weekend, to protesters who are marching peacefully in mandalay and that has already drawn sharp international action. singapore is one of the biggest investors in myanmar and over the weekend called the use of lethal force inexcusable while germany condemned the violence and called for a return to the democratic process. the u.n. country team expressed concern saying the violence must stop and the fundamental right to peaceful assembly must be respected. at the same time, we see myanmar

responding to these criticisms with the industry of foreign affairs responding sunday night with a statement of its own warning diplomatic missions are not to interfere with internal affairs amid what it calls unlawful demonstrations, unrest, and violent protesters. haidi: beyond the denouncing we have heard, what more can foreign governments do to put pressure on the military government? we've seen sanctions from the u.k. and canada. do we expect more sanctions to be on the way? philip: from the united states, they have already employed some sanctions against military top leaders, including the army chief that was just the first round of sanctions we could see. there's a big debate whether broad sanctions could work in the country or whether that would have a huge impact on the

population. so there is some caution there and discussion among observers whether targeted sanctions might be the way to do it. there are countries like singapore and china and other asian countries that have huge financial stakes in myanmar. while the military maintains a huge grasp of economic activity, there could be further sanctions or withdrawal of investment from economic projects there. kathleen: philip hyman, thank you very much for the latest on myanmar. be sure to tune into bloomberg radio hear more from the big newsmakers and get analysis from the daybreak team broadcasting live from our studig kong. listen via the app come a radio plus or bloomberg.com. plenty more ahead of us. ♪

haidi: a quick check of the latest business flash headlines -- sticker maker had any in talks with private interest. they were launched in 1960 warning quickly earned global fame for its stars to world

soccer. sales topped a billion dollars in 2018. a report from china suggest huawei is preparing to release a new foldable handset, but it has been cut off from key component supplies. the new motherboard may be launched on monday, revitalizing huawei's ambition. the report says the phone will use their own chipset. reports from china say top phone maker has taken a step in response to the global shortage of semi conductors. the global times reporting investors suggest they want to resume chip reduction. mainland tech companies are increasingly looking at domestic chipmakers amid tension with the u.s. kathleen: to sophie cameroon with a preview of what to watch

when china -- when markets open in hong kong. sophie: stocks in it focus on the ev theme. some of the names we are watching -- we are keeping an eye on show me -- on xiaomi which says they are studying the eeev space which could provide value for their short-term evaluation. 1/5 of that total car market. we are keeping and i on an insurance company onward they scrapped a device which is to undergo a three-month strategic review. u are watching reaction to china's banking update. regulators imposing tighter rules when it comes to online lending. commodities in the hot seat, we are keeping and i on copper minors after prices for the red

metal went to a 20 year high in london. goldman saying -- with copper facing the largest shortage in a decade. haidi: lots more to come. this is bloomberg. ♪

>> it is 9:00 a.m. in shanghai. welcome to "china open." >> good morning, counting down to the open. your first session of the week on the chinese mainland and in hong kong. more yuan is changing hands than