♪ haidi: good morning. we are counting down to asia's major market opens. caroline: i'm shery ahn -- shery: i'm shery ahn in new york. stock futures point out, the dollar weakens against major peers. resident biden takes charge of

the growing chip crisis, seeking to end u.s. reliance on global rivals as supply disruption has hit automakers around the world. a shortfall of more than $1 billion australian for qantas is blamed on the devastation of covid-19. we speak to qantas ceo alan joyce. haidi: let's look at how the market opened after a positive session on wall street. sophie, what are you seeing in sydney? sophie: it makes bag for stocks so far while bonds are falling at the australian dollar level this morning. kiwi stocks are up on the first foot, adding 10% midweek with the earnings parade in focus. we are keeping a close eye on qantas on its first-half loss. shares are suspended until monday on its capital raise. in new zealand, some kiwi stocks are trading at a november low

while the kiwi dollar has jumped to an august 2017 high. banks are being asked to consider housing prices in its policy calculation. class asset check in japan, looking at reaction to chips and automobile stocks as president biden signed an executive order to address chip shortages in the on mobile industry. tech futures are on the downside. keeping an airlines in tokyo and elsewhere in asia on optimism over the johnson & johnson vaccine. plan this is little change after u.s. stocks rallied on economic growth, jumps in energy after a jump in tech shares on wall street. technique supply outlook spread between wti and brent widening the most since january 2008.

goldman increasing its forecast this year. shery: breaking. we have seen remarks by text from president trump's trade nominee ahead of her confirmation hearing thursday before the finance committee. she says he's tried as both a rival and archer. without going into specifics, she talked about how she would address tariffs, export bans and other key issues. she pledges to work with allies to take on china while embarking on a problematic -- embarking on a pragmatic approach to china as a partner. we will be watching closely thursday in the commerce committee for the nominee. haidi: breaking news in australia, parliament passing the digital media mandatory

bargaining quote, that resulted in a standoff between the australian government and facebook. we are just hearing from the treasurer at the moment that says it will ensure news media sources pay for the generate they content, it is of public interest to the public in australia, and that this is a significant microeconomic reform. we have been talking about global implications for facebook, with the eu and canada and other governments eyeing the contest to us -- eyeing the contentious standoff between australia and facebook. this is potentially what we are seeing now. we are hearing from the treasurer after the law was passed by the australian government, the media bargaining law.

facebook and australia, stepping down a little bit in terms of enabling news to be shared on their platform after the standoff. we'll get you the latest as the details come to us. you are watching the treasurer speaking at the moment after the law was passed. let's get you tamale quinn in new york with top stories. molly: president biden is directing his administration to address holes in conductor supplies and supply chains. biden is seeking to be build economy battered by the coronavirus. some automakers are cutting worker hours due to the chip shortfall and unions are raising alarms about the prospect of layoffs. >> we need to make sure supply chains are secure and reliable. i am directing senior officials of my administration to work with industrial leaders to identify solutions to the semiconductor shortfall. molly: a potential battle going in new zealand as the bank of

new zealand demands policymakers take housing prices under consideration as lawmakers try to cool the rampant property market. the overall outlook for full employment remains the same. the federal reserve, blaming upheaval on an operational error, adding customers are being informed of the current status after the outage hit a national system that transfers -- that process is payrolls, social security and corporate payments. a report to be released thursday is expected to point out weaknesses in the faa airworthiness certification of the boeing 737 max. it has been concluded the faa lacks key understandings of the following safety system. the watchdog says faa mandated reforms remain inadequate.

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. shery: romaine: romaine: -- the payments landscape and australia has been changed in australia with some being used as a savings system. joining us from sydney is zip co ceo peter john gray. you have called this period as transformational. why? peter: it really was a transformational period after we acquired the fastest-growing payment company in the u.s.. our acquisition in the u.s.

market is in the very early stages of market georgie -- market micu already -- market maturity. to be one of the fastest growing players in that environment has had a really great outcome. the group has produced outstanding numbers. haidi: we are just days away from a code of conduct being signed by you and other players. can you give us insight on what regulatory measures can be expected? there has been talk of capping borrowing and limiting fees. peter: we welcome the introduction of the code. it is the first step toward protecting australian consumers from the conduct and free structures -- and fee structures

of some of the product. id checks will be conducted on all applicants. our view is that it is a necessary first step but it is a work in progress as we continue to develop that protect australian consumers of perhaps those not doing the street the best service. shery: does that include concrete measures of what else you could be doing? peter: it is a starting point in terms of the requirements, knowing customers prize on boarding services and financial caps regard to product structures, trying to ensure services are inappropriate for each individual -- services are appropriate for each individual user and being able to deal with financial services providers.

we dictate that all the members of a dispute resolution body here in australia, so we have been held to these standards since inception. it is a proud business, but it does need some changes because of some of the new players. shery: do you expect changes globally when it comes to higher oversight? you also operating the u.k. and u.s., you are trying to expand. given concerns, how are you preparing? peter: that is a great question. it is a very topical subject in the u.k. right now. our view is to always provide our services responsibly and make economics work, so fundamentally, we look forward to working with regulators in each jurisdiction. it is important, regulation, it is important to callout the nature of these products.

they have lower dollar values than traditional products and can often get consumers into a debt spiral. so we see a place for regulation , and it can be unusual in places where there is a penetration of products and services and remains unrelated --. we hope to work together with regulations to ensure consumer harm is prevented. [indiscernible] does hold itself to higher standards than other participants. haidi: zip co shares have been a wild ride, one day a 15% gain, the next day falling more than in a month. in light of the numbers today, is the stock wildly undervalued? peter: 100%.

it is fair to say the whole sector is relatively volatile. it is a very heavily-traded stock on the a sx. we have a very strong retail following. there has been attention drawn to the fact it is undervalued compared to market peers. i think it continues to deliver stronger economics than some of these competitors. arguably, we have been locked in to some degree on this concept of first advantage and we have shown there is room various participants in infant in various jurisdictions. we need to focus on continuing to deliver outstanding results like we have done today, and market lua shins will take care of themselves. shery: given how much you are going until much you are spending to expand overseas, does that delay the timeline for you to become profitable? peter: the important callout

from today's results is that we have a cash flow breakeven. so while we are investigating significant sums to meet our growth ambitions in the u.s. and other markets, we haven't done so sacrificing economics. we have a very strong economic model to be able to point to, somewhat differentiated compared to our peers. we extend our footprint into eight markets with outstanding results. haidi: peter, great to have you with us, zip co ceo peter gray joining us. the aipac unit of abm, missing expectations in the fourth order, income coming in at 13 million, missing expectations, over 150 million u.s. dollars -- over $115 million u.s..

there had been an expectation of leveling off when it comes to declines we have seen thanks to the improving situation in asia and of the reopening's in china and south korea are expected to contribute to better numbers going forward. we are also looking at the break down of rapid growth analysts expected from the premium sector as well. sophie: in sydney, earnings declined, city say the outlook is likely to decline given disappointing performance in china. ramzi health care is jumping this morning, dividend payout, first-half profit falling 13%, the global private hospital network grappling with the pandemic. jeffries, putting focus on the

outlook for flight center, signs of liquidity have improved. check out copper and gold, sapphire resources climbing after posting a 7% year on year boost, first-half net profit and an interest dividend of eight australian dollars. qantas, losing $1 billion, pushing back the restart of national travel to october. not surprising. shery: we will be speaking to qantas group ceo alan joyce later this hour and get his take on when international travel will resume. you don't want to miss that interview. but up next, the bond rout accelerating. bny so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot.

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♪ shery: it is all about higher

yields and the inflation picture. our next guest sees a room to run for the reflation trade. lale akoner is an investment strategist with bny mellon who joins us from london. you say inflationary pressure is not the same as inflation. how do you take advantage of this? >> powell also told us today that just because inflationary pressure is increasing, it doesn't mean it will lead to inflation across all sectors. we are seeing markets are getting a little jittery about inflationary pressures increasing. that is leading to higher yields, but that is because the markets are not used to having higher yields the past several years. therefore, understandably, they are little risk averse at the moment. what this means is that

reflation trade will continue to have much more legs in the future. and that will help emerging-market equities, particularly north asia and south asia, which are pretty much a in their economic recovery compared to other emerging-market. shery: tells about specific emerging markets, because even within the space, we could see perhaps more benefits for countries like china. a lot of people have already been playing that card. lale: china obviously is leading the global economic recovery by a large margin. the fundamentals are still there, valuations have come down, they are getting a little cheaper in the past few weeks because china is actually tightening it monetary -- tightening its monetary space a little bit. but that doesn't mean the fundamentals are not resilient

at the moment. i believe china is a big play, still, that will benefit from the inflation trade. on top of china, korea and taiwan are being helped by the structural, high global demand for semiconductors, and also supplying shortages for semi conductors at the moment. not only for this year, but for the next several years, i believe korea and taiwan will continue to attract good inflows, so this is a good time to actually enter into those countries. apart from that, in asia, i am looking at india, which is quite impressive in its vaccine rollout. in india, i look at the growth sectors that are attractive opportunities, such as tech and health care, which are quite cheap and have a good risk

averse balance at the moment. haidi: is the dollar-yuan still the center of gravity when it comes to performance, or should we be looking at dollar-euro? lale: i think it is dollar-yuan at the moment. the yuan i think is going to expand a little further. ed has room for further appreciation. -- it has room for further appreciation and as the yuan appreciates, it takes other currencies with such as the korean yuan and the tiny dollar, which are going to be, again, quite attractive. -- the korean yuan and taiwan

dollar, which are going to become again, quite attractive. haidi: so lower for longer, more supported for longer by the fed, the question is, how low does the dollar go? lale: i think compared to past depreciating dollar cycles, it has much more room to go lower. that is because with the average inflation target framework, they are looking at employment to really come to an attractive level, and they are cried worried -- quite worried about the structural component that has been there for unemployment at the moment, because of the pandemic. so they are not eager when it

comes to tightening monetary supply at the moment, and this is what chair powell has said. we don't believe they will be talking about tapering seriously until 2022, so that gives us some room for the u.s. dollar to stay low for longer. haidi: always great to have you and we appreciate you staying up with us, investment strategist at bny mellon, lale akoner. coming up, the u.s. seeks to reduce reliance on overseas semiconductors and other materials. this is bloomberg. ♪ ♪ - my son needs this drug, i hope it doesn't cost too much. i hope my insurance pays for it. can you tell me how much this will be? - [cashier] 67. - sorry.

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♪ shery: president biden has ordered a top-level review of

supply chains to reduce reliance on foreign editor terry's -- four adversaries for crucial goods. it will include semiconductors, and pharma and other tech. let's bring in our bloomberg reporter. this is not an immediate solution to the shortage, right? >> it definitely is not. it is almost like they are addressing two separate crises in the executive order the president signed today. it is coming up with a strategy for a long-term solution, but that doesn't do anything to get auto companies that are really in a pinch right now because they can't get there semiconductors. haidi: in terms of the longer, bigger picture, a lot of what is contained in the action is about other crucial strategic materials the u.s. wants to be not reliant on adversaries four.

jenny -- adversaries for. jenny: that's right. semiconductors are getting the big focus on capitol hill. and the current crisis also involves large-capacity batteries, pharmaceuticals and the ingredients that go into pharmaceuticals. that stems from the fact that last year, there was a shortage and the trump administration looked at reliance on china for pharmaceutical ingredients. this is something that started before the biden administration. they are really looking at reducing reliance on adversaries, but they are not mentioning china in this executive order. so we should be very clear that this is not an anti-china action. haidi: jenny leonard, our white house reporter. coming up, our interview in a few minutes with qantas ceo alan

joyce, joining us exclusively to talk about the resumption of economic travel, and today's results. this is bloomberg. ♪

♪ >> we would like to see incoming, actual data that shows us moving closer to our goal. the most important policy to getting those sectors reopened forces bringing the pandemic to an end as soon as possible. we are on a path to that, but we haven't done it yet. there is a lot of slack in the labor market and a long way to go to full employment. we want inflation expectations at 2%, not below 2%. we will do it. it may take more than three

years. we are committed to using our tools to achieving that, purchasing assets at least at the current pace, until we see substantial further progress towards our goals. shery: testimony from chair powell in his second day before congress. asian banks in focus after the new zealand government said it will require the rbnz to include housing and its policy remit. bloomberg global policy and economics editor kathleen hays is here. kathleen, why is new zealand doing this. the rmb's he was opposed -- the rmb z was opposed. kathleen: they didn't greeted with open arms when it was first suggested it might be a good idea for the reserve bank of new zealand. led by adrian orr, you can see adrian orr speaking last november around the time this statement was made. he said at the time that it wouldn't change their policy

much if it were to be included. now, brent robinson is saying they want the rpmz to consider housing policy when they make financial decisions. the remit requires them to take into account government housing policy related to this sustainable housing prices wide -- while they work toward their objective. do they want the rmbz to hike bond rates, speculative mortgages? it is hard to know what they mean but we do know that housing prices have gone up. we look at the bloomberg chart to make it clear. this is happening around the world for many different reasons. the year-over-year rate in new zealand, the latest reading 14.7%, climbing steadily higher there. in terms of markets, you have to think, what does this mean for rate cuts? we know they are not going to

cut rates now because it was made clear at their policy meeting yesterday, everything they said, they took negative rates off the table. but would they start looking at higher rates at a time when adrian orr says they are still a long way toward reaching goals on more employment, higher inflation, they are not there yet. let's look at the kiwi dollar, because it hit its highest since 2017 after the number -- after the announcement came out today. traders are saying, if they might go for tightening, bison kiwi dollars, maybe even sell some bonds, because this could have serious implications. haidi: the sx market trying to get ahead of the curve. no policy changes expected, but as with every central bank at the moment, we are looking toward the yield and bond purchases. kathleen: especially in korea. it is a global trend, isn't it? we talk all the time about bond yields rising, reflation trade,

inflation has to ride eventually -- just arise eventually. right now, the bank is not expected to make policy changes, they cut their key rate 75 basis points in 2020. take a look at this chart. the key rate came down to 0.5%. it is holding steady there. it is not expected to move. but looking at three-year bond yields, now, you can see that in the past several months how that trend has gone, that three-year bond yield low at 1%, but it was down over .7%, so that is quite a move. the more that goes on, the 10-year yield in korea also hitting its highest in some time, so now, we are going to be watching for a policy statement and what might come out at the presser, or in the policy statement in their monetary report. after the meeting, the governor talking and another press conference. will he mention anything about bond purchases? the already said tuesday that

bank of korea stands ready to stabilize bond markets as needed. they have been doing bond buying, but more ad hoc, here and there steps, do it when you need it. nothing wrong with that, but people are waiting to see if they move toward something more definite, perhaps more aggressive, something like long, large-scale bond purchases, something more uniform and maybe have more impact in holding bond yields down even as growth rebounds, the virus recedes, and things are moving ahead for the economy. but that is the big question today. as we wait -- big question today as we await the bank of korea decision. romaine: global data -- haidi: global editor kathleen hays. vonnie: there is great

determination to see change, but if it was simple it was already done. the former u.s. administration was highly critical of the wto and threatened to cut ties. >> there is great desire to reform the dispute settlement. i know the biden administration still has issues with it, as have previous administrations. there are valid criticisms about the way the body functions. vonnie: ghana is the first country to receive covid-19 vac settings through the wta kovacs rollout -- wto covax rollout. the astrazeneca shot is one of the most successful in the world and doesn't need to be stored at freezing temperatures. the hong kong exchange says it wasn't consulted on moves to resume stock trading's, a move that sent stocks tumbling the

most in six years. it is seen as raising a next 1.5 billion dollars u.s. a year for finances hong kong exchanges -- for finances. 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: let's tune -- shery: let's turn to sophie kamaruddin in hong kong. sophie: bonds are under pressure, following dovish commentary from fed chair jay powell. he expects to maintain support for the economy. and we have the rbnz directive that policymakers need to take in the housing situation when creating policy. in a stray, earnings momentum

driving price action. flight hunter gaining ground along with qantas, the roll out of vaccines providing a clearer recovery path when it comes to qantas. australian dollar's against the greenback, at 2018 high on the commodities rally that has seen copper jump to a 2011 high. we are seeing the yen hover below the 106 handle. offshore yen holding overnight after a rough session for chinese stocks, consumer staples leading the decline in china. crudest gaining ground, a one-year high after adding nearly 3% overnight. haidi: the australian parliament has passed a law that companies

like facebook and google have to pay local publishers for using the content. the bill has passed. a lot to foreign governments and regulators are watching this very closely? >> good morning. i was saying that we expected it late afternoon, so they pushed this one through. it has been watched very closely by regulators worldwide. and also media companies elsewhere in the world, no doubt salivating at the prospect of potentially extracting more money from google and facebook. european publishers have been in touch with the european union, for it for -- for instance, and pressing them to follow australia's lead. the fear is for facebook and google that this will lead to a cascade of regulation elsewhere in the world.

and regulation to rein in dominance, their online advertising, their market power and their grip on dissemination of information in key markets around the world. shery: this also seems to give allowance for commercial deals to be cut as a concession to facebook. edward: that is right, this was a key concession. what the government has done, it has said google and facebook, if you go out and reach commercial deals with traditional media in australia, that might be enough, we may not subject you to this legislation. and the threat of this legislation being passed, and indeed we have seen that happen. google has signed a string of

deals in recent weeks with rupert murdoch's news core. -- news corp. facebook has also been signing deals, it reached one a few days ago with seven west media. so the government, job done, it has brought these media companies to the negotiating table and there is a concession of millions of dollars. but it is less the discretion of google and facebook who they reach those deals with. they are not going to be forced into broad, collective bargaining across the media landscape here. it also gives them a month's advance notice if they are going to be subjected to the law, and there is also forced arbitration, with the arbitrator dictating what some they need to pay -- what sum they need to pay the media, that was going to be used as a last resort and that

was something they really didn't like the look of. shery: ed johnson, managing editor for australia and new zealand on that law the just passed and austria. the road to pandemic recovery has been slow for th travel s -- for the staff slow for the travel sector, but they are seeing occupancy numbers go up. >> at the break of a pandemic on a global basis, our rent part dropped 90%. we were running 12% occupancy on a global basis. as we mentioned last week in our fourth-quarter quarter earnings call, we finished fourth quarter in the mid 30's in terms of global occupancy. that recovery is being led principally by the leisure segment. but we are seeing encouraging green chutes in business travel. many of us look with optimism

at how we have seen the recovery unfold in china. in china, where the vaccine has been effectively can take -- contained, we are at nearly pre-pandemic occupancy levels and we have nearly 400 hotels in that market. that gives us a roadmap around how our recovery may occur in other parts of the world. we are cautious. as we have seen in certain markets, when we see a spike in infection rates, it has a pretty chilling effect on demand. we are cautiously optimistic we will continue to see strong leisure transient demand and continued, although slower than we would like, in business transient. taylor call you talked about green chutes in china regarding business travel, what numbers can you give us in the u.s. regarding business travel returning? >> some of the demand is

difficult to track in terms of its purpose. one trend we have seen during the pandemic is a blending of leisure and business travel. increasingly, our customers have learned over the past several miles that not every meeting, but certain meetings can be conducted virtually. so oftentimes, they are heading to our sorts but blending is this eating that trip. haidi: tony, i'm interested in your view on what more is needed from the government on a stimulus level. what about the $1.9 trillion, does more need to be done? tony: the ppp plan has been enormously helpful for our owners and franchisees around the world. but if you spoke to most of them, they are keenly focused on the efficiency and effectiveness of the vaccine rollout. in markets where that rollout is

effective and we are getting a broad swath of the public vaccinated, we are seeing fairly parallel increases in demand. we have done what think we can do. at the start of the pandemic, we radically changed operating protocols, our cleaning protocols, we migrated and improved our technology platforms to try and offer as much a touchless experience for our guests as possible. so i think we have made good progress in building confidence in the safety of travel. but many travelers out there are really making their decision based on the pace of the vaccine rollout. taylor: marriott also has a portfolio of real estate around the world. how are you thinking about conversions at this time and property values? tony: the way we used to work conversions is conversion of independent hotels are

competitive-branded hotels to one of our brands. and that is an area where we are seeing a marked increase in activity. you may know from oppressed release we did a few weeks ago, we announced a significant expansion of our all-inclusive resort portfolio. we side with a group called sunwing to at 19 all-inclusive resorts representing 7000 rooms across the caribbean and latin america. our core brands continue to see strong interest in conversions. and when you mentioned real estate, we have a robust, branded residential business as well. and interestingly, that has been a segment of our business that has been pretty insulated from the pandemic. haidi: that was marriott ceo tony cap wanda. -- tony capuanda. we stick with the coronavirus,

johns hopkins speaking with bloomberg about the declining rate in the u.s.. >> the numbers are taking a turn. there was concern we would stay high. part of the good news is i think because we were so high to begin with. so it is a great trend, and we want it to continue, but we don't want people to get complacent and looking towards going back to normal, because the numbers were so high to begin with and things were so bad here. it is like, keep up the good work sort of message while we continue to do hard work and move forward those numbers. >> you were an expert on the path from emergency room to hospital. what does it look like now? lauren: the emergency room as the gateway to the hospital, so we have to keep those patients moving through. and it is looking a lot better. we are seeing people discharged from the emergency department to home or mid level care spaces which is better, because those high-acuity hospital beds like the icu can take the sickest

patients. hospitals i would say are definitely looking better and the key will be to maintain that into the summer. >> meantime, people are looking at vaccine effectiveness. yesterday, treasury, a report the vaccines that were available was not necessarily effective with the south african strain of covid. what are we learning in terms of effectiveness in combating new variations of the coronavirus? lauren: we are continuing to see the variants increase in numbers. the potential efficacy of the vaccines, we know it may have had an effect on the johnson & johnson vaccine, the single-those vaccine on its way out. now. but the good news -- on its way out now. but the good news is, many of these vaccines can be adapted and we can build booster shots even when a variant looks not well protected against. so we have technology to improve

the vaccines, i don't want to say on-the-fly, but in a much more rapid time. and we did just hear from regulatory agencies that we want require large-scale clinical trials to adapt this vaccines, which is great news because that means we can get boosters and changed vaccines into arms. occur. >> we have heard -- vaccines into arms quicker. >> we have heard from health professionals we could see herd immunity by april, with many more people getting vaccines. other people are saying people won't be able to get vaccinated until june. lauren: herd immunity in a month is unrealistic. and probably nothing message people need to hear right now. we have to be transparent about the path we are on and make sure people don't change their behavior abruptly to make those numbers take a turn for the worse. so it is great to see numbers trending down. i think we are on the way to herd immunity, certainly, but herd immunity is a challenging

concept to assess. so we have to continue to watch the vaccinations. right now, everyone wants a vaccination is lining up to get it, and it is taking a wild, but they are lining up. once we get to a point where vaccine is prevalent across the country and globe, we don't know if people will continue to line up for it. we have to wait and see if people continue to show up to get the vaccine as the supply increases. so i think it is not realistic to expect that we would have herd immunity in the next few months here. but it is realistic to say we are on the right trend and have to keep working to get vaccines into people's arms. >> the vaccination rate has fallen back to 1.2 million average over the past several days. was that a cold snap or something else? lauren: the weather is playing a big part in it. the weather makes it harder to get vaccines to sites. it makes harder to get people to the sites and it makes harder to encourage people to show up

safely for those appointments. we will wait and see the next couple weeks as the weather hopefully continues to improve. shery: johns hopkins university's lauren sauer. the johns hopkins university school of public health is supported by michael bloomberg and bloomberg lp. ty more ahead. this is bloomberg. ♪

♪ shery: let's get a quick check

of business flash headlines. a flurry of buying of gamestop spread to a dozen other so-called meme stops -- meme stocks. gamestop jumped 104%, its biggest advance since january 29 when robinhood suspended trading on gamestop and for other stocks -- and four other stocks. hyundai is recalling more than 80,000 electric cars globally and will take a 900 million dollars hit after defects found in some battery cells. the recall affects electric versions of the kona crossover, the ionic compact and some electric us is made between may 2017 and march of last year. the power cells were made by lg energy at a plant in china. geely auto and its swedish

affiliate volvo are abandoning plans to merge, saying they can be more agile as separate entities. they plan to step up collaboration on electric cars, but will drop a tie up announced a year ago. geely and volvo will move their powertrain unit into a standalone company to accelerate work on hybrid and electric vehicles. and our big interview with qantas group ceo alan joyce is next. we discuss the carrier's latest results and when he sees the restart of international travel that is coming up right after the break. this is bloomberg. ♪

haidi: you are watching "daybreak asia." we would like to welcome our listeners on bloomberg radio as well. a freeze on international travel and australian state border closures combined to force a qantas loss of over $1 billion. let's talk about the results and more importantly, the outlook. qantas group ceo alan joyce joins us for his first interview of the day. glad to see you, it continues to be a tough time for the industry but you are optimistic that we will see international travel recover by the end of october

this year. a lot of things have to fall into place, hotels, vaccines, are you optimistic this is going to happen? alan: yeah, we are. we are optimistic in a couple ways. first of all, the domestic, we have a very big domestic mark that -- domestic market that is unique in the aviation industry. in our first quarter, we only had 20% of domestic schedules operating. second quarter, 40%. currently third quarter, 60% that we expect to get to 40% in the last quarter. we are hoping the vaccine rollout here in australia will help domestic borders and we could certainly get to 100%. internationally, with the vaccine rollout, we should be in a position where we get herd immunity in australia.

we have to pick a date -- we haven't picked a date, the government still has to make a decision. it is a government call here in australia, but the government has talked about a vaccination requirement to enter or leave the country and/or a hotel quarantine. so we are assuming to give our people some certainties to start planning for the start of international operation. the end of october is feasible, we are only talking about getting back 40% of our international capacity outside of new zealand. and for the financial year 2022. so it is not every thing back on day one, we think that is a valid and maybe in some ways a conservative assumption. if it is optimistic, we can delay the push out and if it is conservative, we can bring it forward. but to give our people some

certainty on secondary employment and give them up or other -- give them other opportunities while the borders are closed. haidi: given the balance sheet and staggered restart of international travel, are we going to see airfares unusually high at the beginning to help the company recover? alan: no, absolutely the opposite. there is more incentive to get as many people to fly as possible to cover our cash calls. what we are saying for the fourth quarter is that we start preparing the balance sheet just on the mystic -- just on domestic. because freight is doing so well, which is a hedge on international, yields of freight have gone up. freight is only burning $5 million -- international is only burning $5 million a week, so it

is very low. domestic is generating positive cash flows. so we think the fourth quarter, we will start preparing the balance sheet. we already had going into this one of the strongest balance of any airline. moody's have -- we have a target of what we need to do between now and 22, which we think we will do with the optimism in order to repay debt and get the debt levels down. we are in a very good position. relative to what other airlines around the world are doing, we have one of the strongest balance sheets. shery: does it mean you can take a look at the long haul flights? we are talking about projects on rise. if you are expecting more pent-up demand, can we see it being brought forth? >> we have said we need to see what the recovery looks like before demand returns.

i think international demand will not get back to good levels until 2024. we are still very keen on sunrise. the business case is probably stronger than it was before covid. people will want to fly direct to destinations rather than stopping off. we will not revisit it until the end of 2024. at the earliest, you can take aircraft, but we still think it is a great opportunity. we see the balance sheet being repaired, that is our number one priority. it is for us to do some rise within that environment, which i think could be a good case. we are still very keen on operating sunrise and implementing sunrise. shery: give us more insight into the restructuring happening right now at qantas. you talk about repairing the balance sheet. you talked about job cuts and

other cost cuts, as well. >> we have a billion-dollar transformation and recovery program that will deliver 600 million sustainable ongoing benefits across 800 million year, $1 billion in the third year. in order to achieve that, because of the demand issues on the international front, we have made 8.5 thousand people redundant in the group. that is upon our workforce. we have changed things like ground handling, were we have gone to a remote source provider. and the outsourcing benefits are 40% better than doing it in-house. a significant in capital savings by using the equipment. huge technology savings, big savings by reducing our head

office staff. and we have seen the way we do engineering and have become more efficient. collapsing into one as a cause of this. we think the $1 billion is absolutely achievable. it is similar to a transformation program in turkey, and it allows us to have a recovery in the balance sheet as the demand recovers and borders reopen. haidi: how much more fundraising do you think you need to do to ride the rest of this journey out? >> we have really strong liquidity today. $4.2 billion in cash. as we said, we believe we are going to be cash flow positive in the fourth quarter, repairing the balance sheet.

so it is enough to get us through multiple years, even if things were not to improve. and we have billions of unencumbered assets, land, and aircraft. so we don't have a liquidity issue. we have liquidity to last a very long time. we are very comfortable in our position today. haidi: you announced the last three year turnaround plan in the middle of last year, when we had spoken to you, are you feeling more or less optimistic? has it played out the way you expected? we talked about the worst case scenarios. do you think it played out for the airline? >> i'm absolutely more optimistic. we are still in the middle of the biggest crisis that has hit aviation, but we are seeing this recovery. the domestic market is coming back. we are seeing really strong pent-up demand.

the australian economy has done really well through this, how we handled covid, so we are seeing huge growth in parts of the economy. we see the resource sector booming. our competition is going into administration, coming out a lot smaller, giving us the ability to get to to 70% market share in the domestic market, a market we were really strong before covid, and post-covid we will be stronger. we have to watch our international business so it comes out stronger when international travel requires. we have these amazing things lik e qantas loyalty, which generated cash. people are keen on generating points. and we have the freight business moving. we are in a great position compared to any other airline, and a better position to take opportunities as we get out of

this. i am a lot more optimistic than a year ago. shery: especially given the macro environment when you have rising oil prices, and i know we are far, but we have heard people talk about hundred dollar oil already -- one hundred dollar oil already. >> anybody can pick or hold. people have talked about it going to $100 before. we have a different environment coming out of covid. aviation, apart from carriers like qantas, which will have significant reductions incapacity for some time. a lot of airlines going bankrupt. it is the forecast for people like robert kaplan. we will probably have some economies around the globe that will still be recovering from covid. i think you have half of the forecasts saying it will be higher, half saying it will be lower. what airlines have shown is they can cope with a variety of

different oil prices, as long as we see demand. at least domestically, we see strong demand going forward. internationally, we are keeping capacity parked if we don't see the demand in the future. haidi: you said getting smaller is not going to ensure survival post-covid. you talked about getting market share from those in australia when things restart. what is the bright side on the other of this? what is the priority when it comes to strategic spending? >> the domestic market is our top priority. qantas is exceptionally strong here. we see huge growth in certain parts of that market. putting aircraft into western australia because of the resource boom. we have been adding aircraft to our charter operator network. we have added nine aircraft in

the last year while covid was going on. we have come out of here, and by the next year, as well. huge growth in the business. huge market share. we see huge opportunities with the pent up leisure demand and the domestic market. we see a lot of programs launching businesses and new partners. it has huge growth. by 2024, we could be making an 18% margin in qantas domestic, 22% margin in jet start domestic, international returning its cost for capital. our loyalty business making between $400 billion and $600 million, and we are in a great position to achieve those targets. that is what we are focusing on. the group could be bigger than it is today. we went through a similar restructure in 2013. we had to make 5000 people redundant.

within a few years, we were making multiple billions of dollars of profits. we recruited all of those people back in different jobs. i have no doubt the plan we have in place over the next few years, we can recover the growth back to where it was pre-covid. haidi: alan joyce speaking to us there. let's take a look at how markets are faring on a very busy earnings day. sophie: shares falling in tokyo on sunrise. but stocks pushing broadly higher. the nikkei 225 adding 1.6%. energy and -- shares also climbing. airlines on the rise amid vaccine optimism. the progress on johnson & johnson's vaccine. tecate outmaneuvering back -- to keita maneuvering back in.

so they start in the green for japanese stocks. the yen is testing at one 06 levels. south korea, keeping watch out for the bok. no change expected. bond buying will be closely watched, given what we see in korean yields. kospi adding more than 1%. certainly nearly 2%. the korean won is gaining ground against the greenback. some of the movers in korea are lifting the kospi. chipmakers gaining ground. this is the reaction to biden signing an executive order to address the shortfall in the auto industry. and we have foxconn partnering to develop its own -- some signs for the ev space. some movers losing ground. this after hyundai motors is set to take a hit of electric

vehicles due to battery defects. it agreed -- agreed to a five-year deal to buy -- from asml. looking at the board quickly. you spoke to alan joyce. shares on the move higher. earnings in australia helping lift the asx 200 by about 1%. aussie bond traders will be on the watch for any action to control the yield curve, given the two year yield is at 13 basis points. pickup in kiwi yields. 10-year adding basis points. asking the government to -- prices in its mandate. we have the u.s. ten-year holding steady after we saw a bear steepening overnight that had the 30 year at about 11 basis points. climbing to a level we have not seen in over a year. shery: we will get talking about the bond markets. we want to bring in mark cranfield. just as sophie mentioned, we

continue seeing the global bond route. despite the fact, chair powell continues to insist it is a share of -- show of confidence. what do you think is happening in the bond markets? >> there is a bit of a disconnect between what traders see and what jerome powell sees. jerome powell says the fed has the ability to deal with inflation. while it is true, investors seem to be asking what time he will deploy them. so there is a feeling in the market the fed will be behind the curve in fighting any rising inflation. you see the way prices have been rising so quickly. le have been hedging with breakeven swaps on the treasury market, as well. certainly the rise in the long end of the yield curve is a testament the traders and powell are not on the same page, in

terms of when the fed would step into address the rising inflation situation. as long as chairman powell continues to emphasize the fact short-term rates will be near zero, he wants to see the economy run a bit hot. he's more concerned about getting unemployment rates down. that means he will stay away from doing anything about the perception inflation is taking hold. the long end of the treasury curve can fluctuate more. we can expect the volatility we have seen in the 10 year and the longer end of the treasury curves to be with us for some time. the curve could steepen further than it has in the first few months of the year. haidi: we continue seeing the rise of commodities. how is that playing out for the u.s. dollar? >> generally, it is negative for the u.s. dollar, particularly against major currencies. you can see some of those like the aussie, kiwi, canadian dollar are doing well. this is partly because some of

the major commodities in the world are priced in u.s. dollars. the income flows mostly in u.s. dollars. especially when you have oil prices rising as quickly as they are, for the oil-producing companies, outside of the u.s., and the feeling among a lot of investors is once those revenues come in u.s. dollars, the countries that achieve those revenues don't keep all of the money in the u.s. dollar. they would rather defer some of that into other major currencies, the euro, the aussie, the pound, other places than the u.s. dollar. so a recycling through the foreign exchange market puts downward pressure on the u.s. dollar. we saw in 2008, when oil hit the all-time highs, that was when the euro was strong against the u.s. dollar, and the dollar was generally very weak. we are beginning to see early signs of that. it is not exactly the same situation, but in general, when a lot of commodity income is

being generated in the u.s. dollar, that is a negative for the big currency. haidi: mark cranfield with the latest. follow more on this story on our markets live blog on the bloomberg. let's get you to vonnie quin in new york with our first word headlines. >> the incoming head of the wto says a forum will be her key priority. but it won't be easy, she admits. -- says there is great internal desire to see change, but if it were simple, it would have already been done. the former u.s. administration under president trump had been highly critical of the wto, and a threaded to cut ties. >> there is a very great desire to refund the dispute settlement with the body. i know the biden administration still has issues with it, as previous administrations, and there is some valid criticism for the way the body functions.

vonnie: ghana is the first country to receive covid-19 vaccines through the who's kovacs program. the president is expected to get it out next week. the aftershock is among the most accessible in the world and does not need to be stored in freezing temperatures. thursday, expected to -- weaknesses in the faa's certification of the long grounded boeing 737 max. it was concluded the faa lacks complete understanding of the key boeing safety system tied to the crashes in indonesia and ethiopia. the watchdog says faa mandated reforms remain inadequate. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin, this is bloomberg. shery: still ahead, president biden takes aim at the global

chip shortage with a new executive order. the details next. singapore wants 30% of food to be sourced locally. nexgen food wants to make that happen. the ceo and cofounder joins us. this is bloomberg. ♪

ha we do have breaking news on the rbs bond buying purchases we are seeing. 3 billion aussie dollars of three year bonds to be made to defend the yield target. we also see 2 billion when it comes to the 2028 to 2031. we see the rba pushing back. it has been a test of how much willingness the central bank has to let markets run more when it comes to the move in the yield. the aussie dollar, as well as aussie bond yields have been pushed up with the global

reflation trades. but affecting australia's yields it it has been the run we have seen in iron or prices. more on the market reaction and reaction in the bond market in australia in a little bit. in the meantime, we are watching samsung after president biden signed an executive order to address the global chip shortage. focus on advanced logic chips. the u.s. has been struggling to keep pace. our white house reporter joins us. worth pointing out it doesn't just impact chips, it spans a whole heap of strategically key products and materials, including rare earth, for example. what is the intent and purpose of what biden has done? >> business groups and lawmakers interested in the issue raised the alarm over this shortage, saying it is affecting industries, especially auto

manufacturing. it was brought to the attention of the white house over the past few days. there was a meeting earlier with a group of republican and democratic members of congress. so the president decided to take action, given the chip shortage is going to -- is already affecting huge swaths of the u.s. economy. shery: what will the review lead to? we know it is not an immediate solution, but how do you get all of these industries to behave in the way you want? >> that is the million dollar question. even the president today acknowledged this issue is going to take time to resolve. the order really directs a review that is supposed to be completed within 100 days of what solutions the white house can take. we are not even going to have the results for a few months. it will be important to

companies who really want in immediate solution from the white house. on a parallel track, legislation being talked about in congress to provide tax credits and such for manufacturers to reassure the manufacturing of semiconductors. but congress takes a long time to act. there is the pandemic related rescue bill and other matters they have to get to. it is not clear, and it is unlikely, that there will be real immediate action to address this issue from the federal government. shery: give us an update on what is happening with the pandemic relief bill. we are already hearing talks about biden's longer-term economic plan, when we don't even have the 1.9 trillion dollar stimulus package as of yet. >> that is right. the house of representatives is supposed to vote on that bill as early as friday. then it would go to the senate, where it would have to pass. there is a 50-50 split between

republican and democrats in the democrats really can't afford to lose any votes and have this bill passed. it will be a very tight squeeze to get it approved, but the white house is confident it will be. after that, they want to have an even bigger economic recovery package, as they are calling it, which can include infrastructure and possibly other issues, like immigration. that package hasn't come together yet. the white house said they are waiting for the initial round of -- to be approved before they get to the next package. shery: jordan fabian with the latest from washington, d.c. let's turn to oil. wti continuing to gain ground at the moment. markets on tightening global supplies and a comeback in demand. let's bring in our bloomberg commodities editor. are we already hearing whispers of $100 oil?

>> i guess people are at least putting it out there, which is a turnaround from six months ago, when we were talking about a prolonged and very steep drop in demand. i can tell you that all indications seem to point to the fact that oil demand is getting better and better. on the demand side, things are getting stronger. on top of that, the supply side seems to be continually under control. the latest bullish news reports being the fact the energy information administration in the u.s. is showing crude output fell to $9.7 million -- 9.7 million barrels a day. almost the lowest on record, tied for the lowest reached last

summer when hurricane laura sent production plummeting. and also the fact texas had a major polar blast last week, and millions of barrels of production a day was in wells that had frozen over. haidi: we are hearing pretty remarkable numbers from the shale drillers, as to the millions of barrels lost due to the texas deep-freeze. how much impact will it have on the supply/demand situation, or is it more of a temporary blip? >> i would not call it a blip, because it was several days of shale output that was affected. i think we -- it up a little earlier today, just to get a sense of how much has already been reported by shale drillers. we are talking at least 6 million barrels lost.

that being said, it lasted about a week. we are already seeing a lot of that oil production has come back online. i believe about 80% of the u.s. oil production that had been wiped out by the cold blast has now come back. it is definitely temporary. haidi: our bloomberg energy editor. hong kong -- set to be planning to raise dealmaking funds back in the u.s. one of the family backed firms is working to seek about 400 million u.s. dollars. sources say the company may file with the fcc as soon as this week. the 92-year-old lee has stepped back from the corporate spotlight. it is now being run by his son. jovi area should will form with

a company to take the startup public, reinvent purchases to combine the firm. it is expected to provide more than $1.5 billion in proceeds. it should closing the second quarter, with joby being lifted. shery: -- is planning a comeback aimed to boost its presence in the u.s. and asia. the ceo said the company is aiming to build survival on potential deals and premium brands. it wants to boost its standing in markets where the name is already active. last week, shares fell after earnings missed estimates amid virus restrictions. coming up next, hong kong's stock traders shocked with the first tax hike since 1993, sending stocks plunging, led by the exchange operator itself, as well as the start of trading in

mainland markets. this is bloomberg. ♪

>> this is daybreak asia. president biden said he's directing his administration -- signing in order to review u.s. supply chain. he seeks to rebuild an economy battered by the coronavirus. automakers are cutting workers hours and unions are raising the alarms about the prospect of layoffs. pres. biden: we need to make sure the supply chains are secure and reliable.

we will identify problems with the shortfall. >> and after widespread ravages across key programs, is being blamed on an operational error adding that all customers have been informed. the outage is system that processes transfers from payroll, security benefits and more. india's leading exchanges extended trading wednesday after closing cash and derivative units due to outage issues. the joint decision came after more than three hours,'s longest ever stoppage. asking why try to didn't migrate to the disaster recovery site. policymakers in india are warning that the rise of cryptocurrencies may hurt financial stability.

lee modi administration wants to prohibit private sales in india while creating a framework for an official digital currency. the rbis has warned about money laundering. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: japan and korea have been trading for about a half-hour. we're seeing broad gains. here is sophie with an update. sophie: solid gains for the nikkei to 25% with chip stocks leading the way. the hynek's jumping on a deal, rallying more than 4%. a busy morning for bond markets. after the rba suspending its target.

this amid bets on reflation and commodities rally. we'll see if it will shift the focus of the yield target. a chief economist at goldman sachs does not see the program going forward in july. new zealand bonds in focus as well with the yield jumping, pricing in a rate hike by july 2022 with the central bank moving to cool housing prices and new zealand. and treasuries this morning trading fairly steady after the overnight that we saw with the spread and the low in rising on optimistic growth from a 30 year yield. haidi: let's focus on greater

china, a pretty eventful session on wednesday. a preview of what we can expect today. so what happened on the mainland on wednesday? >> will start with that. it was the second time this week we had a drop of over 2.5% on the overall benchmark. new look across the world, china is maybe the only major economy where you can have a conversation and say rates will normalize and not be asked to leave the room. when you look at what's happening right now, we'll probably get some sort of rebound in the cash markets. holding support level out of 50 day moving average. and the rotation into cyclicals and energy is also taking place in china, something that's been

obvious the past few sessions. shery: it seems that a big part of that drop, or people not drinking as much anymore? david: they probably did, if they were long the stock. were also going to get some of their peers who were up substantially. it goes back to my earlier point, into the ones that lagged going into this year. the question is at what point -- if you look at technicals, from the level of 2015, looks like we're about 3% still from that level. haidi: what does hong kong's

government have in common with bernie sanders? [laughter] david: taxing the rich, right? did i get that right? that stamp duty really came out of nowhere. jeffrey's out with a note just crossing the bloomberg right now. they're expecting a further drop in shares of hk. a price target should be above where you are on the price. that said, things related to the story, mainland investors are turning nets sellers for the first time this year. following -- something to track. turnover was at a record yesterday because of all this

news coming through. shery: what else should we be following their? david: we have some earnings, i know you talked about budweiser and we're looking at copper prices, up 11 straight days on the contract in china. the export numbers were expecting a 30% increase in hong kong for january, that follows on taiwan's release of close to 50%. the synchronize recovery as far as exports are concerned. shery: the same in korea as well. will have plenty more coming up, including a chicken maker that has managed to lend itself a rare investment. the ceo joins us next. this is bloomberg. ♪

haidi: singapore wants a third of its food sourced locally by 2030. an alternative protein company could help that happen. more about a plant-based chicken. >> tell me what we are eating

today? >> this is our first product, it's chicken made from plants. as you can see, it's very versatile. you have nuggets, you have fried chicken, fried chicken burgers. feel free to dig in. >> if you don't mind, i will try eight nugget. >> please. it's all about the fiber and the texture, actually. and the chicken is about the fat. our magic sauce ingredient, it's giving you the chicken experience you are craving and it makes the product very juicy, good texture. and you have the chicken experience. >> where did the idea of this come up? >> i grew up in the family business. my father has a meat factory. they gave me awareness around the meat industry.

basically we slaughter $18 billion -- 18 billion animals every year to eat them. >> how big is the plant-based meat market today? >> it's only 2%, so there is a lot of room to grow. it could be 85 billion by 2030. >> tell us about some of the investors that are participating. >> we just closed in january, we could on board really blue-chip investors. institutional investors, we have the economic development board supporting us. other investors supported us as well. >> so we've heard about the business, but the most important

thing is still the taste. a personal favorite is going to be the burger. so here we go. the burger itself is cooked really well. i would said the chicken patty has a certain springiness and texture that's very reminiscent of texture. is not a -- not entirely what chicken is to be normally, but it's very close. similar to other plant-based meat products. overall, it's pretty good. shery: we do have breaking news at the moment, the latest on the korea rate decision and as expected, it's unchanged at .5%. the bank of korea has flagged them we've seen the fastest increase of household debt since 2018. not surprising the bank of korea is keeping its key rate unchanged. but of course were watching this government bond yields because the 10 year has reached a

two-year high. given no have another budget in korea, the bank of korea has said it will be watching those movements as well. we will get you more on that rate decision but let's go back to the nexgen ceo who joins us now from singapore. we saw you eating those chicken nuggets from the plant-based food. let's continue that conversation where we left off. i have to say i have switched to plant-based as well. i have several different brands in my refrigerator right now. so i wonder how you are going to deal with all this competition. >> i think plant-based is here to stay. our brand, our goal is to become the undisputed leader in plant-based chicken locally. our product is developed in collaboration with and for

chefs. the first thing is delivering the unmistakable taste of chicken and texture and taste. we have our magic sauce. chefs can use it for multiple culinary applications. shery: you've just finished another funding round. what can we expect you to do with all this capital? so far you seem pretty asset light. >> exactly. we're very blessed, with 10 million equity. strong leadership, our

technology business model, and a fantastic product. the money is really going in building teams to expand and entered the main markets and build our consumer brand. we intended to raise 7 million equity last year. it gives us a little bit more runway. we are grateful to have blue-chip investors aboard for our growth strategy. we have an early backer who supported us. so we have a good runway and look forward to a good second half. haidi: you target markets

include the u.s., china, brazil, and europe. where do you see expansion opportunities? is there more consumer facing business that will be the focus as well? >> where a consumer facing brand. we aspire to create the best possible consumer experience. we work with chefs to create the best possible consumer experience and get our brand out there on a global basis. we started here in singapore in march. then to hong kong, then we entered the main markets, the u.s., china, europe, brazil. so one step at a time. haidi: we know that millennials, young consumers are more open to plant-based protein and adopting

these products. is there a demographic division in terms of who you can and want to appeal to? >> yes, for sure millennials, i, myself, kind of feel i'm on a mission as an entrepreneur to drive the change. it's a next-generation, we want to give our children a better planet. so that's why we've created our products. it's a very clean product with only nine ingredients. it's high-protein, i fiber, locale. -- lo-cal. it meets nutritional guidelines of the healthiest, lower sodium compared to regular meat

alternatives. haidi: it's always a worry when you see pages and pages of ingredients. we really appreciate your time. don't miss out on an exclusive interview with one of indonesia's largest e-commerce platforms and one of its most recent unicorn's. a ceo will join us live from jakarta. this is bloomberg. ♪

shery: the bank of korea kept its rate decision steady, holding at .5% as expected. what caught our eye was the cpi forecast for 2021. springer global economics and policy editor kathleen hays. you had lots of concerns over inflation, but perhaps prices will increase a little faster. kathleen: we need to find out why, because korea's recovery is in place, two quarters last year with a big decline in gdp, two quarters now of growth. the question is what happens moving ahead. they did not change their forecast for 2021 gdp growth, still at 3%. that's fine in a world where the pandemic is not quite out of our hair yet. when it comes to cpi, it's

interesting that they moved it up to 1.3% for the year versus what they were seeing in of ember, which was 1%. we have one of our bloomberg charts that will remind us that is good, the progress is a nice thing, but actually this is looking at the three year bond yield. this is another concern, you can see the three year yield is starting to rise, the 10 year yield is rising as well. while the be ok holds its rate steady after putting the key rate three times last year, but in terms of inflation, inflation is still far below their target and that's the question, how it's going to get there. so far we are not seeing any dramatic changes. we will wait for the press conference. this is the cpi, the yellow line.

you see how far they have to go to get to the target, but they are no longer deflating as they were a couple of times last year when you look at that measure. so we are waiting for the press conference, waiting to see what the governor tells us about bond purchases. we just saw the three year yield and the 10 year yield is also starting to rise. the kospi continuing to move higher on this, we've already seen the currency rising. so it depends now on what we hear on that. that happens starting just about an hour from now. haidi: talk more about what we are expecting in terms of pushing back against the rising yield tide. you mentioned the tenure starting to rise again. what are we expecting in that press conference? kathleen: we want him to

follow-up on what he said on tuesday, that they are ready -- they stand ready to stabilize bond markets as needed. that sounds like somebody who is letting us know that we've been doing ad hoc bond purchases as needed to keep a cap on those deals because as economic growth rebounds in korea and around the world, people talk about inflation and reflation, it's a global move. bond yields rising too much can put a brake on your recovery. so it will be interesting to see if he talks now about longer-term continued asset purchases, something more of a program, not just a move as needed. that will be the big question. we know recently we've got good numbers on south korea's exports and korean exports don't just

tell us what's going on for korea but for the whole asian region. now they are rising after being negative month after month last year as the pandemic hit china. and all the nations in asia and around the world. that is another area that will be in focus. will give you all the headlines right here on bloomberg. haidi: kathleen hays with the latest on the bank of korea. get commentary and analysis from all our experts and editors. hyundai is recalling more than 80,000 electric cars globally and will take a $900 million hit after defects were found in some battery cells. he recalls electric versions of the crossover and the ionic compact. the power cells were made by lg energy in china.

anaplan to step up collaboration are electric cars and automated driving. they will move the powertrain unit into a standalone company to accelerate their work on hybrid and electric vehicles. the chinese ride-hailer is said to be planning a move into europe head of an ipo. it may rollout in the you peg -- u.k., france, germany. they already dominate the home market after ousting uber in 2016. it now operates in 13 countries outside of china, mostly in latin america. it's a busy earnings day. sophie: a very busy earnings

calendar. jeffrey says hong kong exchange shares may extend declines after the biggest drop since 2015. calculating the direct impact on stocks in hong kong would be about 5% if that materializes. we will keep a close eye on producers and suppliers across the region. foxconn is partnering to develop and boost its automotive capabilities. the target is to build more than 250,000 vehicles. already seeing some moves early in the session when it comes to japanese and korean players in the auto space. shery: coming up, a market outlook with the boom ahead.

and aftoute and chinese stocks yesterday that's it from daybreak asia. bloomberg markets china open is next. this is bloomberg. ♪

>> is not :00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." david: we're counting down to the opening trade on the chinese mainland and in hong kong. stocks across the region on the up, the aussie tenure yield rises to its highest since march.