♪ >> good morning. we are counting down to asia's major market open. >> welcome to daybreak: asia. the global bond rally that pushed u.s. yields to a one-year high.

airbnb forecast. we are joined by the ceo this hour. johnson & johnson nears approval for its vaccine approval. president biden wants to deliver shots as quickly as possible. south korea rolls out its vaccination program today. let's turn to sophie in hong kong who has the market open in sydney. >> bond markets are very much in focus. we will see a rotation in leadership with yields moving higher. looking at losses with some stocks in asia after what we saw on wall street. the nasdaq losing today. watching for tech names in asia to falter as well. nikkei futures under pressure.

kiwi shares are losing 1%. with bond markets the focus, markets are pricing for global tightening even with central banks pushing back against such speculation. india's rates are seen rising as well. we are seeing the aussie yield curve steepen further. the three year touching 15 basis points earlier in the session. checking out the kiwi 10 year yield rising above 2%. treasury futures, we are seeing them steady after the climb higher we saw in u.s. yields. the 10 year pushing above 1.6%.

we may see some studying given the price action we got earlier. >> analysis now on what we saw overnight. in the short-term, can we expect the 10 year has found something of a top until we get more inflation? does this mean investors have another alternative other than the equity market? >> to your first question, yes, we are close to the end of this. the undersold condition in the long-duration treasury etf or the broad etf are at 10 year -- those instruments have not been this oversold in a decade. we are very close to the end of this. i think it suggests a real opportunity and some of the

segments of the market that have been hit the hardest over the last week or so. >> talk to me about some of the segments. where would you be buying at the moment? >> things are moving so quickly. i coined the phrase covid speed nine months ago thinking about how covid would impact the markets. we have gone from certain parts of the market like the clean energy, bitcoin, those types of the medics being very overbought to in the space of two or three weeks, very oversold. at the same time, we have taken out all of the bubble talk around technology broadly speaking. the market has done a good job of dealing with all of this. and still being up for the year. rod equities still up 2%. at the moment, i am looking at places like europe, japan, i continue to like the thematic's

around clean energy. cyber and the emerging of fintech and crypto. those things are all up 10-20% from their highs of a couple of weeks ago. the reopening trade, the airlines hotels and cruises, energy etc., those are now overbought. >> let me delve into the tech sector. the gtv chart showing the huge selloff we saw on the nasdaq 100. these are overstretched equity valuations. given what everybody says about the sector in terms of structural strength, would it be the right time to buy or would you waited out? >> i'm not a big fan of big tech. i have been making the case for months that rising vaccinations and interest rates are kryptonite for big tech for the

reasons now that everybody understands. the opportunity in the tech space is more in the innovation and disruption in the nexgen nasdaq 100 rather than the faang stocks. that is where the medics with clean energy or fintech. there's an interesting opportunity to merge or meld the medics with old and new. new energy being climate. old financials being the banks. new financials being fintech. having a balanced position among the old and new has been about the best way to move through the markets with the last couple of weeks. >> it's been really interesting because this week, we saw the rotation with the big traditional banks rising and fintech taking hit because of

the spike in yields. there is now fear about inflationary pressures, inflation, how much of this is a concern to you? not just because of the rise in yields but because of the pace of how fast they are rising. >> two weeks ago, i remember saying that higher u.s. rates are a good thing. that is my point of view. i continue to believe in it. to suggest that vaccinations are taking effect, we now have the speed of the fall. the collapse and cases and hospitalizations down 70% in one month. we have better than expected economic data. it earnings. there's a lot of positives taking place. we are going to get a little bit of inflation. it's mechanical because of the inflation a year ago it will now fall out of the calculations. it's highly likely we will get sustained higher inflation. the fed and the ecb have told us that they are happy with

inflation running a little bit above trend to offset the declines of the past couple of years. to me, this is a tempest in a teapot that is going to past. i have been in print since december. 10 year yields in the u.s. will approach 2% by the end of the year. i think we are going to stabilize for the reasons i mentioned earlier and gradually work our way higher which markets will take as a sign of economic recovery and growth and they will be perfectly fine with that. >> what about the impact we have seen from hedging because are we likely to see a repeat of 2003 where it's the mortgage-backed bondholders that continue to force the violent moves in treasury or is the makeup of mortgage-backed security so different now that that's not a viable concern? >> to be honest, that's not an area where i spend a lot of my

time. i'm not a bond expert. i will defer on that. i think there have been some of those mechanics. whenever i see a move this violent, there is always some internal plumbing issues that are driving some of that. i would expect that as i said, oversold conditions not seen in the last cade will stabilize the situation. in the next couple of weeks, i think this is going to recede and markets are going to continue to move higher. jp morgan argued yesterday that the bubble is in fear within the equity space. that makes a lot of sense. markets are much more stable, we have gone through all this volatility and the s&p is still up for the year. i see that as a good thing. it is very hard to find an overbought condition. there are many more oversold conditions in the equity markets than overbought.

>> i know you have views on crypto as well. we were talking about trillions and market cap potential in the space. what do you make of this? >>, belieber and bitcoin -- i am a believer in bitcoin. what i think's going to happen is the institutional adoption of bitcoin and the merging of bitcoin and fintech. we are seeing that play out over the last several weeks. blackrock saying it will allow its funds to participate in bitcoin futures. bank of new york, one of the largest custodians saying they will custody such assets. canada launched the first north american crypto etf last week. the information continues to flow.

the melding between fintech and crypto contents to get deeper -- continues to get deeper. perhaps to see if -- if there is some can -- inflation concern, gold has been the traditional store of value. that is not working at all. bitcoin may be taking some of that traditional interest as a store of value. emily: it is great having their thoughts on everything from bitcoin to equity for the bond markets. you can read more about the reaction to the global bond developing entails addition of daybreak. -- in today's it issue in of daybreak. now let's turn to vonnie quinn. >> the fed warning that

businesses warning -- ravaged by covid mako best -- dust. real estate, entertainment, transportation, retail, energy all seen as particular problems. many of the riskiest loans are held by so-called nonbanks. president biden has spoken to saudi king salman. a report is expected to be critical in the kingdom's role in the murder of jamal khashoggi. they they are expected to say the crown prince ordered the killing of jamal khashoggi. india is joining the global push to rein in facebook and others. it will require companies to

remove unlawful content more quickly and identify the originators of those posts. youtube and netflix face tighter oversight over explicit images. military leaders in myanmar are facing opposition with britain adding to u.s. sanctions. facebook banning posts, pages, and at. the regime earlier called on internet service providers to block access to facebook. facebook says the risks of allowing the army to remain on the platform are too high. 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. this is bloomberg. ♪ >> still ahead, we have a big interview. the ceo of airbnb discusses earnings. coming up next, a lookout south

korea is rolling out its inoculation campaign. this is bloomberg. ♪

>> we are bracing for volatility in the asian session this friday after a bruising session for equities and the deepening selloff in u.s. and level bonds overnight. we are seeing every sector trading in the first 20 minutes or so firmly in the red. when it comes to the aussie 10 year bond yield. some are saying that they are

attractive despite the volatility. we will continue to watch those markets flashing red across the board when it comes to the early start of the sydney session. fda advisers meet later friday to discuss the j&j pfizer -- covid vaccine. president biden wants to speed up inoculations and the delivery of vaccine shots. he says there is a place for fast distribution if it is approved. >> if the fda approves the use of this new vaccine, we have a plan to roll it out

it. -- tomorrow, we will hear whether or not an outside panel of advisors tells the fda that they think j&j -- vaccine should get the emergency use authorization. it is expected to be given and if that happens, j&j says they can have 3 million doses available next week. president biden says he will do whatever he can to get those out the door once they are produced. this will significantly add to the supply in the u.s. in addition to the pfizer and moderna vaccine's. j&j be one dose. it can be stored at much more

reasonable temperatures. its efficacy is less overall than the pfizer into moderna vaccine's, yet against severe cases, it did very well and there were no deaths in the testing population. overall, it is expected to get the approval and if that happens, we will see the vaccines rolled out the door very quickly. >> korea is now starting vaccinations. the government has been highly criticized for not securing the shots sooner. >> there has been criticism. there is concern over whether that vaccine will be accepted which had led to a dust up over whether the president should be the first to get it to help the vaccine acceptance.

at the end, it was decided that health-care workers and other frontline people should get it first. there's enough acceptance that they didn't need the president to get the shot before others. the vaccine will be rolled out and we will see how well it does with the population there. >> it has become a very political issue. coming up, the market cap of bitcoin could head into the trillions. this is bloomberg. ♪

♪ >> bitcoin is trading at $48,000. days after arc and best founder is back in the spotlight after

making this ambitious call. >> when you aggregate all of these use cases for bitcoin and assume a conservative allocation in the terms of cash or insurance policies, you do get into the trillions of dollars of market cap potential. >> she said bitcoin has emerged as an insurance policy in a world of low rates. it could even replace bonds. >> the biggest surprise to us in the last year, we expected institutional investors to start moving into bitcoin. massmutual was -- to think about all of the hoops they had to go through to put hundred million dollars on its general account even though it is .001%, they

had to go through a lot of regulatory hoops. that was a big surprise. we expected institutional investors to start moving and. what we did not expect from institutions was the diversification on their balance sheet. the diversification of their cash assets into bitcoin. that has been a positive surprise that we think is going to continue. there is another thing that we think could come out of this related to it. when you think about 60/40 when you think about balance accounts, 60% equity, 40% bonds. what is happening with bonds right now. talk about the need for diversification. if we are ending a 40 year secular decline in interest rates and flattening out or moving up slightly, that asset class has done its thing. what's next? we think crypto could be the

solution. >> i want to transition to mike. the key thing you said was if. why should there be a 40 year trend in lower rates? like you pointed out in your radio interview the other day about -- a cost is going to drop to $18,000 per unit and we look like things like natural gas, down 80% and it just can't go up. i will transition to michael and a second, but i look at it as trend is your friend, why should we end now? >> unless you are going to negative rates, the spreads have come down so low, treasury yields are so low because quantitative easing. i don't think rates are going up a lot. we are in a deflationary environment for two reasons. number one is massive innovation

which is technologically enabled. then the second is creative destruction which is caused by disruptive innovation forcing highly leveraged companies to cut prices to support. we see those two coming at us. but we do know there is a concern given all of the quantitative easing. there is no rules -- monetary policy out there except for coin and crypto. we think this versification makes sense in terms of cash, but asked income -- fixed income has done 40 years of very hard work and we will be in a deflationary environment, but if it coin is -- if it represents a new asset class, why not into it? >> let's get a quick check of

the latest business flash headlines. crypto exchange has applied to list. transactions search in bitcoin. it reported monthly active users of 3 million. gamestop surged to hundred percent. it is up more than 500% although it soared throughout february. twitter surged as it -- said it aims to double revenue by 2023 and expects growth by 20% per year. it is now getting 300 million

average daily users. twitter aims to boost income by building add products for smaller clients as more users shop online. we will be speaking with the ceos of airbnb and salesforce next. this is bloomberg.

>> let's second look at how this asian session is reacting to the turmoil over global markets. what do you see? >> bond markets front and center. yields in new zealand and australia adding 13 basic points is morning and the three year in australia is approaching the basic point line. nurse being tested, indeed. we may see some bond buying action to improve those yields. also looking to see whether the boj meeting has action over bond

buying purposes. switching out the board, let's check on the stock action this morning. we losses across the board. 2% on the benchmark with all sectors in the red. the nasdaq 100 is falling more than 3%. que vstoxx the worst stock market in the world. we are looking at more red across the screen when markets open in tokyo later today. we are seeing little change right now. amid this inflation and recovery, i want to look at the chart on the terminal. percolating into markets that have not translated into performance in asian small caps so far. they are lagging behind their larger peers.

we are seeing that volume moderate after back-to-back monthly surge shares. >> let's get more on the markets with mark cranfield. mark, you were telling us about this. small accounts across asia. our question on the day, which stock index will turn first? we are seeing thriving with yields and how hard this could hit emerging markets. >> certainly, when you look at countries that have a high exposure to tech stocks, that will be one of the first places investors will look. we have mentioned in our question that the nasdaq index is down 7% from its record high. it is one of the first that could take that weight. any other major market which has a high exposure to tech. when yields rise, that is not good for growth stocks, because they depend so much on people

keeping faith with the fact that they can continue to grow their market cap. so they give out to give a didn't stashed good dividends, or they don't give out dividends at all. certainly, markets, in asia and taiwan and korea, certainly wants to watch out for. it does not mean to say we are definitely going to get into a bear market, but the disruptions in the treasury and global yields markets have become severe. people are waking up to it. you can see how wall street corrected last night. some serious falls. not necessarily responded yet in asia. it looks like a rocky day. coming into the weekend as well, it will make a hard case for people to get bullish on stocks. i will expect more weakness going into the weekend as well. it will be pretty tough for stocks to survive this.

over the weekend, we might get central bankers calming everyone down, saying the bond markets are not as bad as they appear. before the time being, you expect defense -- investors to be defensive. >> mark, you see the dollar yuan going above the 6.5 mark. what are the indications you see across the rest of asia as a result of that? >> other asset classes will be thinking, how do we respond to these rising yields? currencies is a very big one to watch here in asia. the yuan has been leading the case. where most of the asian currencies go, the want to stated below -- stayed below 650 for several weeks. the action for the offshore yuan

suggest the downtrend in place for several weeks seems to be breaking now. we want to see the pboc reflecting the rules in late north america. we will stick to what happened yesterday with the onshore yuan. it could be a bit misleading. the chances are already that in asia they will be looking for stock loss holds in dollar yuan. if that kicks off, it will spread to other currencies, the korean won, it follows pretty course -- ready closely. the singapore dollar. there will be a knock on effect across asia. where the yuan goes will be very important for how people scramble to cover short positions across the asian space. we do know that it has been relatively quiet in the asian currency markets so far. we know people are holding onto short positions where they ended last year. there is a risk here that this could be a quick acceleration for a dollar short covering if the yuan leads the way.

>> mark cranfield, you can follow his -- you can follow him on the market blog. we have an alert on the bloomberg right now. we are getting the tokyo cpi numbers. core cpi still in contraction. .03%. still less of a deflation -- deflationary pressure than estimated. the estimate in contraction of 4%. you actually get a rise of .2% in energy. we are washing pressures around the world -- watching pressures around the world closely. economies are recovering. yields are rising. the 10-year yield on jgb's is the highest since 2018. always a forecast of what is going to happen with the national, so we are watching that. let's turn to the u.s. and perhaps an even recovery we are seeing here. trying to pass another stimulus

package, the recovery continues. a very unequal, uneven way. critics saying it does not do enough to help those in need. raising the minimum wage is a controversial part of the package. our next guest has a pull that shows it is a top issue for black and latino women. joining us now is the ceo of the institute for women policy research, nicole mason. nicole, great to have you with us. how much of what we are seeing in the package right now is being targeted enough to help those most in need? >> the stimulus package is actually what we need right now. it is a robust package, $1.9 trillion that will go a long way to fixing the economic crisis we found ourselves in. there are a lot of things in the package. the stimulus check, $40 billion for childcare support.

these are all lifelines for families struggling right now. the minimal wages a critical component that we are fearful will not make it into the final package. of course, people who have been hardest hit during this economic downturn, women of color, specifically, or employed in the hardest hit sectors. raising them and wage could do a lot to help them -- raising the minimum wage could do a lot to help them economically. according to our pull, it is blacks and latinos who have been hit hardest in this economic downturn, and they favor raising the minimum wage. >> tells a little bit more about that pull. it is not just about them and wage, it is also about health care, right? >> what we did, is, we surveyed more than 1400 women across the country, oversampling for black and with tina women. we found that women are really struggling. more than half the women we surveyed said they were having a hard time paying their bills and making ends meet.

top priorities for them included health care, getting the economy on track. they were also concerned with jobs, women have lost more than 5 million jobs since the pandemic started. job creation is critically important in this moment for women. and taxes were also a big issue as well. we are talking about the earned income tax credit and other programs that will directly support and help women and families. >> nicole, what are the structural changes that can help women ritual -- return to the labor force. we know even president biden says it may be hard, possibly impossible to get women back to where they were pre-pandemic. >> that is a really good point. at the beginning of last january, women made up about 50%

of the workforce. all of those gains, that milestone, it has been wiped out because of the pandemic. women have experienced a tremendous amount of loss during this economic downturn. we have to know there will not be a 141 recovery. we will need accommodation of job creation and education and training to get women back into the workforce. most important leak, schools reopening. before families and women not able to return to work because of caretaking demands or their jobs have disappeared, we will need continued economic support. >> we looked at things like the marshall plan for women and children from the founder of girls who code and it has been supported by a number of high-level executives. something like that possible? is there a political appetite for payments to working mothers for the structural changes? childcare changes that are so desperately needed?

>> so, you know, i think all ideas should be on the table. the marshall plan, we need something a little more robust. we need a new deal for working families and women. one that goes beyond thinking about short-term economic support for women who are caregivers for their families but not the only caregivers for their family. isaac summing more robust that takes into account building -- i think something more robust would keep -- would take into account national childcare. i thing that is important in this moment. also including nutrition and food assistance. that is also what is needed. >> what about the corporate sector? we talked about the need to address the worklife balance in the corporate world. there are changes that need to happen here, right? >> so, what's good for working

people is also good for businesses. when we pay people a living wage, and raising the minimum wage and providing benefits, it is good for the economy, it is good for communities, it is good for productivity. businesses also benefit from many of the policies we are advancing and advocating for. in this moment, i believe the private sector has a critical role to play in helping women get back to work. >> nicole, great to have you. we appreciate your time. we have a big guests coming up next. we are bringing in emily chang joining us from san francisco. emily echo >> -- emily? >> quarterly revenue crushed out. they held off on providing a financial forecast and were cautious about the year to come. stay to -- stay tuned for my

interview coming up. this is bloomberg.

>> we welcome our bloomberg radio listers joining us now. airbnb's first earnings report was a mixed bag. it benefited from travelers using vacation rental rash --

vacation rentals. they were cautious about the air. joining us to discuss, the airbnb ceo. thank you for joining us. this is your first earnings report as a public company. i want to start with the big earnings fee, after the year of the torpedo, as you called it. what were the main drivers? >> thank you for having me back on the show. the main drivers were that our model is inherently adaptable. however travel changes, because we have millions of hosts in 100,000 cities, however travel changes, we can adapt. if what we are seeing -- what we are seeing is people are staying longer. they are in cars. they are staying nearby. the kind of travel people miss is not them standing in line to see a landmark. they miss standing -- they miss spending time with family and

friends, and being hosted at a good way to do that. that explains some of the recovery. >> shares have been a little muted since results came out. you have any sense of why that is? >> i will not get into the habit of why the stock price will fluctuate on a day-to-day basis. i am 39 years old and i am sure i will be asked this question a lot, i am focused on a very long journey. we are at the very beginning of a huge opportunity with travel. that will be the extent i will comment on it. >> there was a big selloff today, so that had something to do with it may be. revenue was down, 30% for the year, but your competitors down way more than that. bookings down 55%. how much do you think -- how much do you see that competitive edge continuing post pandemic, especially given that now is a unique time when people are favoring vacation rentals over hotels?

>> i can probably comment more on what will happen on the airbnb. we know a few things to be true. the factors driving our recovery, we believe, will continue through the year. business travel will not recover, but leisure travel will. we are predominantly a leisure travel business. people will probably not be crossing borders right away, they will probably get in cars and traveling to small communities nearby. that is the concentration of airbnb. in the world of zoom, people can work from home, and they realize they can work from any home. you will see longer and longer stays. we think all the reasons people have loved airbnb, those people -- those reasons will continue, in addition to new cases where people discover using airbnb in covid and beyond. >> in the forecast you say that year-to-year comparisons will be volatile and unreliable. give us some color of what you see in the year ahead. when do we see a real baths --

real bounceback? >> anyone in the business of predicting the future last year would have gone out of business. i will try not to predict too much about the future. we believe that the travel rebound is coming. the reason why is, people tell us. we did a survey of american travelers and they said travel is the activity they miss the most. the majority of people we pull, including people that make median or below median income, do plan to travel this year, and they plan to travel but it is safe to do so. that is a subjective feeling people will determine on a personal basis. we believe travel rebound is coming. we think it will be a big rebound. do not know exactly when. i have told my team better to be early than late. we will be ready as soon hits. >> how is the company preparing for that demand increase? >> for things we are doing. the first thing, we have just on

a launch of a brand campaign called make possible by host. we do not do a lot of marketing anymore. but we felt now was the perfect time. people want to message a host but we want to make an investment in the brand of hosting so more people want to be a host. we need to recruit more hosts. if the rebound is as big as people think it is, we need to make sure we have enough host to prepare. we want to simple if i our aft. we are changing our products. we are changing the paradigm of how you book airbnb. he for you had to type a destination or date. -- before you had to type a destination or date. now 40% of guests are saying they do not have a location or date in mind. we are working on improving our customer service. those are the four things we are doing, a great brand campaign,

improving hosts, improving gap,. i they will we will -- i think we will be ready for the rebound sooner than any travel company. >> most of the growth is coming from north america and regional travel. less so in europe, where we see stricter lockdowns. how do you see international travel returning? when does that bounceback? >> the way it cuts down is, domestic travel is really strong almost everywhere. domestic travel is defined by people traveling within the country. you see the travel that is suppressed is cross-border travel. countries like italy that depend on a lot of inbound travel are not doing as well as a country like the u.s. or even france, people travel a lot within their own countries. we are seeing a lot of strength in the u.s. but also in other countries like mexico and brazil and other countries where domestic travel is vibrant. the real question is windows does cross-border travel return? i do not know the answer to

that. how the officials will have a better sense. people will cross borders when they feel safe to do so. that has a lot to do with the health crisis and vaccination rollouts. >> there's been a rise in processional -- professional hosts on the platform which bring in 30% of revenue. i've noticed as a user and it does sometimes change the commute occasioned process, that feeling of connection that you say is so important. g-v that is a risk factor to the brand and do you see that number -- do you view that as a rick -- as a risk factor to the brandon do you see that number growing? >> 90% of our hosts on airbnb, more than 3.6 million of our individual -- of our 4 million hosts, are individuals. they are everyday people. 55% of our hosts are women. we think we have a vibrant, great host community.

the screens is different with a professional or a hotel. -- the experience is different with a professional or a hotel. people want something unique or one of a kind. that is primarily delivered by individual hosts. we do not want network gaps in our network. hyundai's people are looking for a hotel or a professional -- sometimes people are looking for a hotel or a professional hospitality provider. we will continue to have that balance. our focus is primarily on individual hosts. that is something we do well. >> you were investing in hotels before the pandemic. where does that business go now? do you see hotels as being important to the business going forward? >> hotels are very important to our business going forward. we are still investing in hotels. i very excited about and it is one of the most loved travel hotel apps in the world, we are investing in it. but what changes this. last year we lost 80% of our

business in eight weeks. we had to move quickly. the way we decided was to focus. we took our best people and focus them on the most important part of our business, the core of our business. the individual hosts, the majority of our community. we scaled back hotels. they are scaled-back as an investment, but we can scale with the demand. i think hotels will be excited to list on airbnb, because, ultimately, of a hotel has less than 50% occupancy, which most of them do, they will want any bookings they can get and we have a lot of calendar -- a lot of trial of -- a lot of travelers. >> have you done any traveling over the last few months? the world opens, where you engines to go first? >> i have done -- i have not done too much traveling. last year i spent 16 hours a day in sweatpants in front of an

imax seven days a week. it was an extremely -- in front of an imac seven days a week. it was an intense year. isaac the response ability -- i take the responsibility as the ceo of a public company very seriously. i will probably go to a national park. i will give a plug to national parks. there are 400 in the u.s. the average lives within a tank of gas to one. most of never visited one. i think people will rediscover the outdoors and national parks. i am open to suggestions on which one. >> brian, we will float that to our viewers. we hope you get out soon. you so much for joining us. brian chesky, ceo of airbnb. >> thank you.

>> all right, emily chang there with the airbnb interview. we have more of the interview just ahead. we will hear from jack benioff about a sales jump that disappointed investors. a global tech company is with us exclusively a little later as well. we have breaking news in terms of japan. it's january industrial output. better news when it comes to to do -- when it comes to to exec -- two consecutive months of decline. better than expectations of 3.8%. also much better than expectations, a decline of 5.3% there. we've seen mixed performance when it comes to sector, but also looking key when it comes to the performance of the semiconductor related businesses, given the global shortage. it's at markets. -- let's look at markets.

across asset classes, losses are accelerating. every sector is trading in the red. treading here in sydney is down. when it comes to new zealand, just down below 1%. a bit of pain going into the start of trading in tokyo. futures are holding onto those gains. we're looking for a tough session after the selloff of gold -- of global bonds. a jump in the u.s. dollar, as well. we will take a look at the futures outlook, a pretty hard way to end the week for asian investors. green investing in asia coming up next. plus the challenges on china's policy ambitions. and of course as i just mentioned, we are margaret -- we

have the market open in tokyo. this is bloomberg.

>> welcome to "daybreak asia," from bloomberg squirrel hill gores in new york. >> asia's major markets have just opened. the global bond rout has pushed u.s. yields two a one year high. this testing central banks resolves on instant -- on interest rates.

we hear from top lg shareholder this hour. and johnson & johnson near approval for its covid vaccine, with president biden aiming to deliver shots as fast as possible. south korea rolls out vaccinations today. >> in the markets it is all about the global bond rout as japan and south korea come online. we are seeing in japan a 10 year yield is at a multiyear high. >> the jgb 10 year yield is rising this morning, topping that 17 basis points level. this will put the focus on the boj, whether it will take action when the bomb buying operation is -- bond buying operation is scheduled to occur. we have stocks opening to a downside in tokyo. we are seeing japanese banks also under pressure this morning. there could be upsides for japanese value like auto and

financials if higher yields materialize. turning to south korea, south korea kicking off its national vaccine campaign today. we are also learning it is planning to sell 14 trillion yuan -- 14,000,000,000,001 -- 14 trillion won in bonds. we talk about the selloff we saw in u.s. stock. i want to highlight a note from morgan stanley. they have downgraded korean stock. check out the korean won losing ground. looking on the board to check in what is going on elsewhere, the aussie under pressure. we see yields climb in australia, as well. the three year yield is pushing higher. we are seeing the 10-year treasury yield gaining ground

this morning as well. a lot of pressure when it comes to this tightening we have been facing. a lot of focus on the oil patch. prude losing some ground today. opec meeting to take place next week. there's a headache for india -- headache for india as policies ramping up for the economy. we will get that gdp report from india later on friday. check the terminal, amid this, in the commodities space, the bloomberg gauge for raw materials is on track for the best month in 10 years. you have oil moving higher, copper moving was a record set executive ago. haidi? >> mark, what do you make of the section you saw, the

continuation of the pressure we saw in the asian session. when it comes to treasuries, will we get inflation indicators? >> we are trying to get mark back with you. in the meantime, you can get everything you need to know on his live blog. let's get you with the first word headlines. >> [inaudible] >> i will give you the headlines. businesses ravaged by covid-19 are sitting on a mountain of debt. 30% of corporate lending was in trouble last year. that is double what was 12

months earlier. many of the riskiest loans are being held by so-called nonbanks. the u.s. is asking mi's and others to promote center over iran for accelerated nuclear activity. u.s. diplomats have circulated a list of grievances. there are reports iran is enriching uranium two levels needed to make a weapon. the un's atomic energy body meets next week. myanmar is facing increasing international opposition from countries and corporations, with britain adding to u.s. sanctions and facebook banning host pages and ads. the regime had called on local isps to block access to limit commune occasion and planning among protesters. facebook says that the risks of allowing the army to remain on the platform are too high.

reports from australia claimant china says -- claim that china says they have ruined their relationship. the city morning herald says beijing considers the australian government as having destroyed long-standing ties. australian wine was stopped from entering china last month. let's get back to the markets. the volatility overnight is now playing out in the asian friday session ahead of bloomberg. mark, if we assume that we see a temporary peak and it comes to u.s. treasuries, will the volatility -- will the volatility be short-lived? >> i am not sure it will be short-lived. i think over the next couple of weeks, we need to remember is that yields are rising and

causing problems in markets, but not in the real economy. the real economy is recovering strongly. is that fuel for demand in commodities that is driving the yield higher. we are seeing at the moment the idea that this is the markets problem. central banks are a little slower to panic about it. they will not back away. i john expect them -- i do not expect this to be an extreme meltdown. it will play out for a number of weeks ahead. it will ebb and flow. they will let markets run further and slowly push back. whether short term turning points are the higher distant thing for -- are the hardest thing for investors to item five. >> it will be difficult for the rba or d -- boj when they have yield targets? will we see more widening of the yield target band? >> i am not sure we will get that in the short-term. it could be possible for the

next step. traders analysts will think about that today, how this will play over the next couple of months. whether it is in the immediate term, as in today's session, or in the next week or so, we will get pushback from central banks. but they will not panic about this. they want to stop from losing control of the situation. they are a little worried. people are buying commodities as a hedge against inflation. but inflation is going up. we have a virtuous self reinforcing cycle causing the problem. no one expects central banks to hike rates. central banks a little worried about all of this, but they will not panic until the real world economy suffers. there is no sign of that. >> but we see panic and the equity markets, right? this showing that we could perhaps see a further selloff when we have the 10 year yield in the u.s. at what point do we

get a broader panic in the equity market? what investors start to think, this is not worth it. >> i think we are already in a much more bearish environment for equities. the surgeon commodities is not something we have seen since the 1980's. generally, when we see a commodities surged as powerful as we have seen in the last 10 months, that is a bad environment for stocks. one-month, three-month, six-month basis. again, i would say, just because the air is an equity selloff, we know in the past year -- just because there is an equity selloff, it should not translate that the real world is suffering. we are in a tougher environment for equities. they will trade lower in the weeks ahead.

it will not be a sudden panic, but we have we -- reached a turning point. i think china will take -- will try to contain it. china is one of the countries that suffers most from this hike in commodities. terms of trade are collapsing and the worst level in eight years. china is really suffering. >> we continue to see that pressure on chinese equity markets. mark, more at his commentary on markets live. that is our bloomberg ball -- bloomberg blog. priscilla lu joins us to look at prospects for espn green investing in asia. and we look at equities for a long-term lg shareholder. they talk to us about why they

do not support lg's spinoff plans. this is bloomberg.

>> long-term lg shareholder says it will vote against the conglomerates proposed spinoff of several units. in an open letter, they oppose the move as it does nothing to solve lg's most pressing problem, the company's and norma's trading discount relative to its nest at -- relative to its net asset value. joining us is simon wax lee. simon, great to have you with us. how much is your shareholding right now? my understanding is it is less than 1%. do you plan to increase it to get your voice heard? >> we have under 1%.

we have been a shareholder for a couple of years. we cannot speak for other shareholders, but, we have had unanimous support -- consistent support for what we are saying about this transaction. >> local media are framing this issue as an attack on lg from a speculative foreign capital. we know south korea is very defensive when it comes to shortselling. still band at this moment. still -- still banned at this moment. how do you respond? >> i have been investing in korea for more than 20 years. white box has invested in korea for many years. there is the korea discount, the infamous -- the infamous korea discount. you can see that in the

conglomerates. to reduce that discount, for the values of the company to risk flecked their intrinsic value, for all investors in korea, including pension funds in korea and nvidia -- and individuals who are investing in korea. we think companies and acting good governance would be a positive for all stakeholders. >> simon, to make it clear for those here, what are the main reasons you're taking this position? >> let me describe the transaction a little bit and we can understand what is going on. lg is a large korean conglomerate. the market cap of lg is about $15 billion. there spinning off around $1 billion of equities in cash. it is not uncommon for companies or conglomerates to trade at big discounts to their intrinsic value.

the thing is, in the situation, rather than spinning off those equities in cash directly to shareholders, which the company could do by mending their articles, they are packaging those securities and cash into a new conglomerate. that billion dollars to shareholders will be distributed as a new mini conglomerate. we expect that to trade at a significant discount to its asset value. probably more so than the 65% that lg currently trades at its asset value. we think it does not make sense and continues to undermine trust that the company is acting in the interest of the company as a whole and all its stakeholders. that is why we are objecting. >> can use tell some more details -- can you tell some more details about your discussion with the board? what was their reaction? >> we have had correspondence

with the board for well over a year now. unfortunately, we have not had any two-way engage, but we have had many conversations with investor relations. not until we went public to the board reach out and engage with us. in the recent past, we had a dialogue and the board accepts from our discussions, they accept that the discount is a problem and that governance could be improved. but, we have yet to see anything tangible that would be something we could really become triple with as a shareholder. >> simon, you were before with elliott management. we saw that high-profile standoff with them in samsung. do expect more of this activism in south korea? if so, are you worried about the government taking more defensive

positions and helping these firms? >> i would not really view it as an attack. i see this as a huge opportunity for companies like lg to demonstrate their leadership and governance. the world is moving forward from a governance perspective, from an esg perspective, and that is across the u.s., across europe, and it will be across asia, as well. we do not see this as an attack. we think this is a positive evolution. company should act in the interest of all their shareholders, treat them all equally, and act rationally with them. they should be positive for all stakeholders, including korean stakeholders. we hope it will be treated in the same way. >> simon wexley, really great to have you. head of white box equities

joining us from london. we will talk about the results of central banks in terms of global bond selloffs. the reserve bank of australia is offering to buy 3 billion aust -- 3 billion aussie dollars in defense of its yield package. we already saw on thursday the buying of 5 billion aussie dollars, matching a record set last march when it began qe for the first instance. we are seeing in an off schedule purpose -- off schedule purchase that they are buying 3 billion aussie dollars to defend its yield. a global bond rout sending benchmark u.s. yields to a one year high. the 10 year yield jumping as much as 20 base points. we athe reaction from the rba. heading out to earnings.

extending -- and extend a trade after earnings failed to impress investors. we spoke to emily chang about that performance. >> we are seeing a robust environment, robust demand environment, that customers need to transform. they need to be able to work from anywhere, they need to be able to sell from anywhere, service from anywhere. that is what we do. it has been a great opportunity to help our customers be more successful than ever. >> shares dropping after hours, investors helping for growth to accelerate more. what is your response to that? >> i never look at the stock, honestly. i am focused on our customers success. over 22 years as the ceo salesforce, i've learned one thing, is that if our customers

are successful, and letting the rest take care of itself, that is my advice to other ceos. nothing is more important than the success you have with your customers. this was a year with a lot of customer success. i look at a couple of examples. a company you and i follow closely, aligned technologies in the bay area, they transformed their relationship with their customers, the product is more important than ever because of -- because in the new world of zoom, everyone wants to look great on zoom, and they all want a line. a full digital transformation. not only with dentists and orthodontists, but also with you to see relationships. we have transformed the digital experience. >> i am home as well, mark. i feel you. tell us what you have learned about leadership over the last year, having to run a company

with all these employees not knowing what is ahead. >> this is a moment where we have to cultivate our beginners mind. we can have every possibility. and the expert mind, there is few possibilities. if we want the world to work, we need a beginner mind. i am not in my office. i am at home. i need to sell and service digitally. we are conducting billions of impressions with our customers on a regular basis. as a company, we need to help our customers do that. we usually do an interview a dream force every year in sanford scope. we did it from apart, me and a camera. that is an example where we have to get ready to re-create everything. but as we move into the new world, as we are getting vaccinated, and things are reopening, i think we will see things change. i was just in singapore two weeks ago and i went there to

see, how does the future look? how does work look in the future? they are still wearing masks, but all their businesses are open. their hotels are open. they are conducting a normal society. it was powerful to see that. and to expanse it. it inspired me for what the future of what we will go through here. >> what's your sense from regulators if they will approve this deal? >> we have entered into an agreement to acquire slack and we have continued to enter that process. i expect that it will have a successful outcome. until that point, we will continue our business normally. >> salesforce ceo marc benioff, speaking to emily chang.

we have breaking news at the moment. we are hearing that the senate parliamentarian has ruled about minimum wage hikes here in the u.s. to $15 an hour. it is out of order to be included in that senate relief bill. remember, this was a decision on whether that proposed wage hike could be included in the fast-track bill. the rats are using budget reconciliation process to pass the bill -- democrats are using the budget reconciliation process to pass the bill in a partisan way. we have not seen objection to the wage hike, but now we have seen that it has taken a fatal blow. haidi? >> sherry, lots going on when it comes to the asian reaction to the bond market. take a look at tokyo stocks at the moment. the nikkei is down just shy of 3%. on the most since june of 2020. the indexes down a thousand points. every single stock is trading lower at the moment. the kospi is also up by 3%.

in australia we are seeing to decline. we also see the reserve bank of australia coming up with another bond purchase, trying to maintain their yield target. they already matched their record of bond purchase of $5 billion -- a 5 billion aussie dollars. this is bloomberg. (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you to maintain comfortable, correct form. that means better results in less time. you can do an uncomfortable, old-fashioned crunch or an aerotrainer super crunch. turn regular planks into turbo planks without getting down on the floor.

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meltdown across equities and bond markets in asia. they are reacting to the global selloff. a huge move in u.s. treasuries overnight. this is what we are seeing in asia. australia 10 year looking for a reaction. how much of one. this despite australia buying 3 billion aussie dollars in

defense of the yield target. that attempts to rein it and will continue. we are seeing in new zealand similar outsize yields as well. we hear the governor pushing back against the idea of monetary policy taking into account my -- the housing asl. this is bloomberg.

>> this is "daybreak asia. " indications of a breakthrough in the breakfast standoff between london and brussels. manwell macron says the eu may grant some form of -- emmanuelle macron says the you may grant some form. this could happen by the middle of next year. russia's public face of the opposition has been moved from the moscow jail it is thought to be in a new prison.

he was move thursday. his legal team nor his family have been told where he is. he lost an appeal last week and on charges from 14. -- from 2014. chinese app tiktok has agreed to pay to settle privacy violations. this comes after the former u.s. and its ration said tiktok was a threat to national security. the biden team is trying to force bytedance to spin off their u.s. operations. india is gluck -- india's joining the global voice to rein in facebook. numerals will require companies to -- new rules will require companies to take down unlawful content faster.

new bloomberg research says travel volumes in china this lunar new year are down 70% from 2019 levels as the coronavirus continues to affect everyday life. the government in beijing imposed rules discouraging traveling. in normal years, they're usually around 3 billion trips around china. this year, total numbers may struggle to reach 500 million. 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. i am vonnie quinn. this is bloomberg. haidi? >> the u.s. looks to be emerging from the darkest. of the pandemic. let's take a look at how that is happening. eight slots is pretty impressive, does that speak to the turnaround and the optimism with the vaccine rollout underway? >> that is right.

globally, the picture is much better than it was. we are adding fewer cases a week . that momentum has come out of the pandemic. the u.s. is jumping eight spots showing that its improvement has outstripped the global improvement and that is potentially the turning point. >> this coming at a time when we continue to see more inoculations around the world, including the kickoff of the vaccine in korea. >> that is right. we are seeing vaccination start to make a difference. in israel for example, just far ahead and vaccination, we are seeing them make a dent in cases. but the spread of the u.k. variant across israel was so bad, giving at one of the worst per capita infection rates around the world, that it is only now coming down.

it will take a while for this to be quelled by the vaccination drive. we see vaccinations will be defining of what is going on in the world in 2021. richer countries that have access to those vaccines and that are moving faster with vaccination, we are seeing a rich-poor divide. >> our bloomberg asia consumer health care journalists, rachel chang. let's turn to sophie in hong kong. >> first focusing on the bond rout continuing in asia. defending the yield target after a three year gap. we are not seeing any of that rba invention -- intervention. the boj will follow suit, given the yields for japan trading at

january 2016 levels. the rba governor came out this morning saying that the government remains committed. look at the board, despite policymakers pledging long-term support for the global economy, hiring cost is seeing a risk off session across asian equities this morning. das 200 following tuna half percent this morning. the downside of japan coming through, even as we had optimistic economic data this morning, industrial output and retail sales. japan may lift the state of emergency outside of tokyo by today. looking at the kospi, we will see if it pushes below the 3000 line. we are seeing the korean won as the dollar index is up picking up some steam.

adding about 2/10 of a percent. the aussie dollars of -- is losing about half a percent this morning. a lot of focus will be on the offshore yuan. when i comes online, it will trade just above the 650 level, after breaking through its 50 day line. shery ahn cut >> let's get more on the market -- sherry? >> let's get more on the bond markets. how bad could it get? i'm seeing the 10 year yield in the u.s. under a little pressure. >> the weakness in equities will actually work to support the bond markets. we are seeing early signs that the u.s. treasury market may be oversold, or there are some indicators that the major selloff last night, about the

worst in 11 months, may have been taking yields to a point where people will switch some money into bonds, away from equities. that does not mean to say that it will stop the routes in equities in the near term. asia is putting much joy and a and with the u.s. -- is pretty much joining in with the meltdown in the u.s. people are putting attention on bitcoin, as well. euphoria in the smaller markets has been related to the rise of bitcoin. bitcoin is under severe downward pressure now. the bond market may stabilize a bit, but that is not enough to help equities from falling further. we will switch to see if bitcoin goes below $40,000, because that could be the level that matters now in terms of giving us a read across asset classes.

>> we have seen, in the last few minutes, the rba stepping into defendants yield target. questioning how much more they will need to do, and also, what are the expectations for the governor? >> all the central bankers will be doing their best to calm everyone down. we heard the governor of the rbn say that as well. we will hear from the european central bank later in the day. everyone at a time like this, you can expect them all to try and remind investors that short-term yields will stay exceptionally low for a long time, especially with liquidity needs to markets. these are things we know already but still need to remind people of. the big issue is that all central bankers around the world have been saying that rising yields is a positive sign for economic growth getting better. that is fine, but if you are going to get a lot of positive

economic growth, yields needs arise, and that is with the bond market is telling central banks. we are not likely to hear that central banks will change their policies. we will hear a lot of central bankers try to reassure markets that they are overdoing it. for equity markets, it will probably not help in the short-term. >>mark cranfield on an extraordinary day in the markets. upcoming next, on the changing world -- on the changing world of states in china. why china has become a better bet on the west. you can see that interview up next. this is bloomberg.

>> it looks like economic support is here to say. jay powell reaffirmed his commitment to accommodating policies, and the houses expected to vote on president biden's relief package later today. we asked morgan stanley investment manager what the u.s. support means. and is it similar to china? >> there could be some convergence, but to china's credit, china success over the last 40 years has been because the role of the state has systematically gone down.

you have a state in the background, but the goal of the private sector in china has changed a lot. china negotiates this incredible debt over the last two years. it is the rise of the tech china in china all in the private sector. -- the tech giants in china all in the private sector. looking in the background, we do not quite appreciate how much the private sector in china has contributed to the growth margins. you have a point here. china started from a state heavy model and ended up going down over time even though the state is still there. but in the western world, we started from a very private sector model, so there could be convergence here in the economic models we have in china and in the western world. such an interesting twist, which

is, if you look at this, how china is behaving is so different from how it began in 2008 and 2009 and how the u.s. in the western world is behaving today. it is because of stimulus. china rolled out a massive stemless in 2008 in 2009. there are consequences. it suffered from a huge debt angle in the following year. this time china will be more cautious. in the amount of stimulus it rolls out. the western and developed world are going the chinese way of 2008 or 2009, of a massive stimulus area china has learned its lesson from then. >> just one more stat. all things being equal, does that suggest over the medium longer-term that china may be a better investment than the west at this point? >> not just china, but emerging

markets in general i see is a better investment for a key reason. china and other emerging markets have carried out much more fundamental productivity enhancing reform, including in india and indonesia. they just have not had the money to spend on these two meals programs. what it does is give a huge sugar high. but it is china and the other emerging markets that are getting more activated with reform, which leads to sustainable growth. the western countries entirely rely on stimulus to try and robot -- to revive the economy. there is little focus on reform. >> the morgan stanley investment chief of speaking to us about the balance of power. for more of that interview,

catch wall street week on friday, at 6:00 p.m., new york time, that is. china may release more details of the greening of its economy at next week's national congress. the ambitious goals of going carbon neutral and boosting renewable energy will face challenges. our next guest is the head of sustainable investments. it is great to have you with us, priscilla. we know the governments ambitions are very clear one of the comes to what they want to achieve. where the challenges when a country as biggest china and as diverse as china and getting the provincial and local bodies on the same page? >> that is definitely a priority right now. china announced they will get carbon neutral by 2060. it is a long time from now, but the amount of work that needs to be done is massive. they have already started to

look into how they can get these local provinces and ministries and industries to lead the efforts and recognize the far -- the carbon footprint they are creating and what is the roadmap to using less. a significant amount of work is now beginning to figure out how to standardize the calculation of the carbon footprint. what is deemed a carbon calculator, and how do you define it? how do you ensure you get to carbon neutrality and the claims you make are valid and can be evidence, that will be some of the work ahead. to incentivize and encourage the industry to adopt and raise the drive to reach carbon zero.

>> what are the investment opera -- the investment opportunities in that field? >> we are seeing that many of the companies are providing technologies that reduce pollution or in-house gas emissions, or even in measuring the energy efficiency and carbon emissions by the large industries are seeing huge growth. for investors, this area of industry is a huge sector of significant growth. it is also very much being financed by the government, encouraging the banks to provide discount financing to large industries and companies to start building out green infrastructure. the chinese government is focused on encouraging domestic growth, especially domestic growth in areas relating to green industries and technologies that can be applied to reducing pollution to the

environment. to that end, there is huge opportunities for investment. especially since, financing available to support this green infrastructure, is being encouraged by the government to support this in a way that will help accelerate achieving carbon neutrality. >> are you see more of a focus, a more intense focus on the green initiatives, on esg, since the pandemic? >> very much so. i think the awakening is not only in china, but the awareness that this is pervasive and now has global impact. i would say it is really an awakening for the whole world. to that end, the vulnerability of how if we are really focused on how to address the pollution in the health environment -- and

help the environment for the community, can have a huge impact. what we are seeing now is that esg is mainstage now. it is very much in the forefront for many investors. propelled by not only the support by the governments all over the world in ensuring that industries are addressing this, but also by regulations like the european financial disclosure regulation requiring fund investors to disclose their portfolio in terms of the metrics of esg. we will see stock markets require listed companies to disclose esg and become much more aware of the impact of a particular company and business has for the environment. that itself creates opportunities for investment. >> what you seeing in terms of how much technological advancement is helping with these initiatives?

>> for example, if you look at infrastructure, it is no longer just putting in infrastructure and monitoring pollution, but being able to apply physical technology, sensors, very sophisticated software that will measure and manage, not only pollution, but also energy efficiency and to be able to adjust and, really, control the amount of resource being consumed by the industries. that level of awareness, that level of measurement is being made, and it makes a huge difference. these numbers are telling. coveney's are seeing -- companies are seeing what they are doing to the environment and the amount of resources they consume in the amount of waste being produced, which includes waste in terms of water consumption and in terms of waste produced, especially in

terms of toxic waste. all of these measurements make a difference, because that becomes an incentive in terms of disclosure. that will have the in -- the industries will take action appropriately. >> priscilla you, a member of the pboc's green finance committee, we continue to watch the markets. take a look at the functions of what the market moves are right now. it has been about the bond market as we continue to see that route continue to the asian session as world bonds are heading for the worst month since april 2018. we are seeing the 10 year yield in japan despite its highest since 2016. the five year since 2017. the rba is offering to buy again and get into the markets, into the bond markets, to defend its yield target. this is as dollar spreads fall

the most since april 21 a. this is bloomberg.

>> take a look at the japanese nikkei. we are seeing every single stock on the nikkei under pressure at the moment. the worst since july 2020. we are seeing tech and industrials leading those declines, energies also down

6/10 of 1%. watch the bond markets in japan, as well, the 10 year yield has climbed to a high we are not seen since january of 2016. all eyes on what the boj will do, they have their reassessment of monetary policy coming out in march. some speculation out there that we will see a widening of the yield and from the boj, as well as the rba, facing that conundrum of having to keep within the yield target. let's turn this to hong kong to check other assets moving at the moment. sophie echo >> -- sophie? >> high-yielding in the indonesian rupee. elevator u.s. yields could impair flows into asia. asian central banks will have to intervene. they have ample capacity to do, given lester's buildups in

reserves. -- given last year's buildups in reserves. lotta speculation that they will raise rates -- a lot of speculation they will raise rates. a lot of special agent in the bond markets. we are keeping a close eye on the pboc, taking market actions today. the offshore yuan is at the 650 level. haidi? >> we have airbnb reporting revenue in the fourth quarter, blitzing expectations. people traveled to mystically over the holiday, despite the rise in covid cases. there are seeing results for the first time since becoming a publicly traded company. they saw a decline of just 22% of the year. that is better than the foreigners on them million that had been expected. model three staff at tesla is

holding back production at cal -- in california. we are told the company is plagued by supply issues and the company has admitted the capacity issues from semiconductors are also a problem. crypto exchange corn -- coinbase has a common stock on the global markets. they announced a doubling of net revenue, at more than $1 billion of transaction serves -- of transactions in a surge of bitcoin and theory and. -- and ethereum. asian banks are said to be weighing about the food ingredients unit. they may consider a secondary listing in singapore at a later date. it announced last year it was planning to split into wider commodities trading as people

are increasingly careful about what they eat. that's it today for "daybreak asia" and our coverage continues as we look at the start of trading in hong kong, shanghai, and shenzhen. this is bloomberg.

♪ >> it is 9:00 a.m. in beijing, and shanghai. welcome to "bloomberg markets: china open." i'm tom mackenzie. >> i'm david ingles. we are counting down to the open of trade in the chinese mainland. let's get to your top stories as we wrap up this trading week. this global bond rout that pushed u.s. yields to a one year high. steamrolling into the year.

central ca