>> a very good morning. welcome to "bloomberg daybreak: australia." >> good evening from new york. >> top stories. china recovery slowed last week as businesses closed in the lunar new year holiday. asia markets -- central banks

are moving to calm nerves. warren buffett is accused of a tone deaf response. >> the global bond rally eased on friday. let's see how we are setting up for the asian session. here is sophie kamaruddin. sophie: on friday, -- we are setting up for a muted response to friday. watching the rba to set a tone before its policy meeting on tuesday. aussie bond yields -- 10 year off by about 22 basis points and a three-year rate is inching closer to the rba target rate. the kiwi 10 year yield is retreating from the two ports -- from the 2% level. we are seeing kiwi stocks with

losses as auckland enters a seven-day lockdown. offshore yuan holding below a level. policy normalization on the mainland. pulling up a chart on the main terminal with that backdrop. we see the 10 year yield gap between chinese bonds and treasuries coming in at the narrowest since april 2020 which may have some appeal for chinese bonds from foreign investors. haidi: more top stories. china's economic recovery slowed in february as factories were shut with the lunar new year holiday and the virus. tom mackenzie joins us from beijing. this is always the weird

seasonal time of the year but how pronounced is the slowdown? tom: the slowest. you rightly point out that this is an annual event. the seasonal affect as a result of the lunar new year and on top of that were the restrictions in travel. that really did seem to dampen these data points as well. manufacturing numbers were particularly hit by a drop in exports. nonmanufacturing also eased in february. you have to bear in mind that many people who would've been traveling were not traveling and those that would've been spending on services were not spending. bloomberg economics says it is not the end of the story in

terms of china's economic recovery. they did not pick up a resurgence in exports and activity in february and early indicators when you look at things like car sales and home sales in the export numbers, they suggest the economy has picked up since the slowdown over lunar new year. >> could we see a yearly growth target when the national people's congress starts this week? tom: that is the debate and it has been for the last few years and it has been reignited. various officials suggesting that you need to have a target or it is going to be dropped. we will find out on friday at the national people's congress, this annual other, a gathering of all of china's top leaders here in beijing. they will set other targets. a deficit target, spending on special issuance bonds. the local government bonds or the quote for them is

expected to be dropped. it would be the first time that local government bond quotas has been reduced since 2015. it is been a major source of stimulus for the last few years for the chinese government. the deficit target is another number we are watching for. economists believe that will be pulled back again. it was set at 3.1%. 3.6% last year and is expected to be pulled back to 3% this year. the focus is raining in concerns about financial risks and leverage. that will be a keep priority for policymakers. -- that will be a key priority for policymakers. they will also be outlining the plan for the next five years and the broader vision until 235. and also developing indigenous innovation's. that will all be in focus on friday. >> hour, kenzie wilke buzz

updated on all things china. we have more on the economic outlook throughout the day. we will speak to richard mcgregor rate in the next hour and we will have views from deutsche banc and other us. we can also get more on the chinese trajectory. go to your terminal. >> over to vonnie quinn with the first word headlines. tensions in hong kong. >> hong kong authorities have charged dozens of activists under the national security law just days before the opening of the mainland highest profile annual meeting that you were talking about. 55 opposition figures originally arrested in january -- 47 face charges of subversion.

myanmar has severed its deadliest day of protest so far. 18 people have been killed. the u.n. hcr says police and soldiers fired live ammunition into the crowd in at least six cities. the european union says the shooting of unarmed citizens shows a blatant disregard for national law. policymakers in australia are signaling they will not short from yield targets and qe programs i head the tuesday meeting. the governor will focus on a response to global reflation trade. the australian economy is recovering. southeast asia's leading right hailer is setting up drive-through vaccination services in indonesia. the grab program launched in

bali. indonesia has severed the largest coronavirus outbreak in southeast asia. 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'm vonnie quinn. this is bloomberg. >> president biden's relief heading to the senate as democrats call for a quick approval process. and australia is considering more relief eight. coming up next, a wild week in bond markets. this is bloomberg. ♪ [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help.

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>> this week, this is pretty

painful. >> we got disruptive dynamics. >> we have more to go in terms of driving rates higher. >> markets expecting a stronger recovery. >> we are selling off because of optimism for growth. >> there is a distinction that is illustrated by that rise in real yields. >> people are left with a lot of exposure. >> markets are finally taking the pain and repricing. >> the problem with relying for too long on monetary policy. the exit becomes difficult. haidi: some of our guests on what was a wild week in bond markets. joining us now for more is al lord. we are seeing a reasonable recovery when it comes to

australian bonds at the moment in the early part of the asian trading session. is it key for investors to watch what central banks will do? al: yes, definitely. the rba is first up with their meeting on tuesday. we will see how they respond and how central banks respond overall. chairman powell said that the yield spike was a vote of confidence in the market is testing the fed and global central banks as to how serious they are here. there is growing expectations and inflation concerns and that is playing out in the markets. haidi: as one of our guest said, this is not a set of market conditions that are for the faint of heart. what is a rational investor doing in terms of allocation? al: it is tough. even with a backup in yields,

the 10 year treasuries had one point put percent. -- 1.4%. and you had the 10 year breakeven inflation rate moving to the highest it has been since 214. you are losing purchasing power holding onto a ten-year treasury and yields will go higher so you will lose your principle. the s&p 500 was trading with the dividend yield at one play 5% which is also losing purchasing power to the tenure inflation rate. it is hard to say. and that is what is driving markets. and that is why bitcoin has taken off. and a lot of crazy things have happened in the market. there is nowhere to get yield and it is that search for yield which is what is driving invest -- what is driving markets. shery: to your point on the 10 year yield and the s&p 500 guilt, this gtb chart on the bloomberg -- given the narrative

, we are seeing increasing yields because of economic recovery because of the stimulus package coming up in washington. should we be facing more decisions when we head into more cyclicals? al: yes, that would help. if you look at last year, you had a 50% return on the s&p 500 but 59% of the companies had negative earnings per share. there will be a rebalancing. the economy is set to take off here. in the fourth quarter, u.s. gdp was 4% and that was before vaccines were rolled out. and that did not happen until the last week of december. that economic growth will gain momentum as more vaccines are rolled out and we get back to

normal. you will have the beneficiaries of the initial shutdown, certainly the technology companies will earn less relative to other companies including the cyclicals. there will be a rotation of among stocks. haidi: are those your favorite sectors. we have a different narrative where we are seeing a retail frenzy around stocks like gamestop, blackberry, and amc. al: you asked earlier about one of the comments made last week about markets not being for the thing to of heart. it really is not playing with these stocks and bitcoin. that is a whole different world. yes, you have to figure out the best places to be and investors are starting to figure out -- where do we want to be with growth and inflation? you're seeing a search for real

assets. if you look at the bloomberg commodity index at its highest level last week since we 13, copper is at its highest price since the 11 but supplies are at their lowest -- since 2011 but supplies are at their lowest level since --. we are focused on real estate and among real estate, apartment buildings. haidi: in which part of the u.s.? and how do you structure that investment? al: great question. the beneficiaries right now are the southeast of the u.s. where you have growing employment and growing population. you have favorable economics and lower taxes. that is the big beneficiary. in the previous recession, you

have a move among retail investors in all types of asset classes that were purchasing in the major cities like new york and san francisco because that was where liquidity was. the opposite is happening in this covid recession. investors are moving out of the major cities. shery: does it worry you that we are seeing the mortgage rates go up with the interest rates? al: yes. that will hurt some types of real estate and it affects all kinds of borrowing. on the flipside, with growing inflation, you want protection to inflate your rents. if you own an office building in new york city coming you're getting hurt. -- new york city, you are getting hurt. you have the other dynamic of --

where is the population moving to? and with office buildings, you have a long-term lease. apartment buildings, the lease is one year at the most. every year, 1/12 of your rent roll is coming up for renewal so you are renewing at a higher level. shery: al lord, great to have you on. we have one of the big investor moments of the year with archer hathaway annual report. -- berkshire hathaway annual report. the 15 page letter barely mentions the pandemic. it steers clear of politics. let's bring in our finance reporter, catherine. it is not that surprising because we have seen warren buffett be less willing to make

political statements in recent years. why is it so controversial now? >> he has been very careful with politics. he did not mention it in his letter. and may 15 -- in 2015, he made a political comment. what was most striking is we did not get much about his view on the pandemic. there was one reference. if you go back to other letters, say, in 2008, he made a lot of reference to act, -- to economics. haidi: beyond the notable absences, what were the big takeaway's?

-- takeaways? >> berkshire for so long has been a deal machine. looking to make big acquisitions. what i think you left this year's letter with was he is willing to play another game when the dealmaking environment is not helping -- not happening that well. he bought back a record amount of stock from his own company last year. he is willing to find ways to find -- he is willing to find different ways to make money. haidi: our finance reporter covering warren buffett and

berkshire hathaway. the australian prime minister is under pressure with one of his ministers accused of rape three decades ago. this is bloomberg. ♪ when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $300 a year with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store.

haidi: australian prime minister scott morrison is coming under pressure the cause of one of his ministers is accused of rape 30 years ago. what we know about these allegations? >> it all came to light in an anonymous letter. it it -- it included a statement from the victim related to the alleged rape that happened in 1988. the woman took her own life in june of 2020. malcolm turnbull said he got a letter from the same woman in 2019. this is now being investigated by police. the accused sits as minus --

sits as a minister in the current cabinet. scott morrison says if the police lay charges, the minister has only to step aside. the prime minister is coming under pressure to name the person as well as stand them down during the investigation. others say everyone is entitled to justice. you would suspect it is just a matter of time for this person's name leaks out. shery: how many serving politicians were aware of this allegation? >> quite a few as it turns out. malcolm turnbull, the former prime minister. he said it seems incredible that the current prime minister did not know sooner. malcolm turnbull would've had opportunities to mention this to the prime minister because scott morrison took over from him. a labor senator who received the anonymous letter, one of the senators that got this letter

machine says she met the victim in november of 2019 and advised her to make a complaint to the police back then. the abc has reported that a labour mp was also contacted by the victim in 2019. a number of politicians serving in canberra at the moment new all about this but nothing was done. we also heard today of a second rape allegation, this one related to a labour mp dating back to 1980 six. a lot of questions about all of these incidents and some major shortcomings in how these are being handled. shery: paul allen with the latest. we have an alert on the bloomberg right now. a confirmation that they are considering development -- divestment. converting the investment into a direct holding. in a statement they said it will

hold 9.82% of the company after conversion. they say they understand and respect danone's plants. its state will be cut. the arrangement will not affect the business strategy or the plans for the group. haidi: let's turn to a quick check of the latest headlines. hong kong is waiting on news for the overhaul of the stock index in its history. monday, hang seng indices will announce the result of a lengthy consultation on the stock market and it may increase the number of constituents and fast tracking its listing. this comes as mainland chinese companies experience growing influence on the hang seng index. walmart has lured two goldman sachs officials to a new start

up. however, it offered little detail of the timing. the head of goldman sachs -- they are joining the new venture. citigroup is restating fourth-quarter results after writing down part of the loan to revlon. it lost a court case over mistaken payments. citigroup has been trying to send an interest payment to revlon last year with a transfer. up next, johnson & johnson's plans for the virus xe. we have the latest in talks from the white house covid team. this is bloomberg. ♪

♪ vonnie: you are watching "bloomberg daybreak: australia." factories and businesses closed ring that lunar new year holiday and virus restrictions curbs that usually frenetic travel season. a nine-month low as export orders plunged lower than the median estimates of 51. . nonmanufacturing gauge also missed forecasts. five republican senators warren president biden to keep away from a new nuclear deal with

iran, joining some democrats and voicing concerns. they have written to the president saying that 2015 accordance riddled with problems. with unrealistic timelines. russian critic alexei navalny has been removed from moscow to a penal colony feared by its own inmates. he was detained last month accused of by letting crawl restrictions from 2014 and is reported to be in a prison in the vladimir region 100 columbus east of the russian capital. former inmates say prisoners are subject to constant intimidation and isolation. warren buffett is accused of a tone deaf response in his latest annual letter to shareholders. the 15 page letter barely mentions the pandemic devastating the united states economy, and steers clear of politics and the storming of the u.s. capitol last month.

declining to comment on a tumultuous year. global news 24 hours a day on air and at bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn this is bloomberg. shery: good news on the vaccine front here in the u.s., johnson & johnson cord any with the white house now as it plans to deliver enough doses -- coordinating plans with the white house as it plans to deliver 20 million doses by months and. it's coronavirus vaccine has been cleared for use, a third for the u.s. immunization campaign. let's get the latest from ian fisher, when could we see americans getting these shots? >> well, there is breaking news here. a few minutes ago, the head of the cdc, rochelle walensky formally signed off recommending adults 18 years and older should receive a shot.

it is a one-shot vaccine, which is different from the other two approved, and it does not require ultracold storage. so it is easier to get out. there are indications the company, that they are ready to start shipping right away. shery: some experts are calling that jay and jake shot a game changer, light -- j&j shot a game changer, why? >> it has a couple advantages. it is only one-shot, a like pfizer and moderna which require two shots. also, it does not have to be kept in ultracold storage, it can be kept at room temperature or in refrigeration for a long time. and while all manufacturers are trying to get out as much as possible, johnson & johnson said they will be able to get up 100

million doses by the middle of the year, roughly a third of the u.s. population, so that is a lot of vaccine. over the last -- it was a long process for approval. since the fda went through its final approval yesterday, governors around the u.s. were starting to tweet thanks, and pledging to their voters or citizens that they were going to get the shots out absolutely as soon as possible. shery: given the differences between the vaccines, i am tempted to weigh their pros and cons of these different shots. dr. antony found she seems to are not to do that. dr. fauci: we have to get away from that chain of thought for the following reasons. the only way you really know the difference between vaccines is by comparing them head to head. shery: yeah, i guess we should not be shopping around for these

shots. >> well, yes, for a couple of reasons. the main reason is that the level of protection, even though there are differences, are still very very high. the idea that you want to get as much immunity out there as possible. it is not really about the shot that you get, it is about the shot that everybody gets, if that makes sense. that is one thing. the second thing is, even though johnson & johnson has a slighter efficacy for the disease overall, when it comes to very serious forms of the disease or death, there is not really that much different. so, dr. fauci says, you know, the differences are not that big, and up pro's of your taking any of these is so much higher than getting the one that seems to you to be absolutely right. that you should just take whatever you can get.

and it is not a matter of really settling. no one is saying that johnson & johnson vaccine is inferior and anyway. each of them has pros and cons. shery: ian fisher in your come our bloomberg editor with the latest on the coronavirus vaccines -- our bloomberg editor with the latest on coronavirus vaccines. meanwhile more on the threat around the infections. prime minister jacinda ardern has new zealand and locked down after a covid case. the decision was made after no definitive late could be made between the new case and no definitive out rates -- outbreaks. playgrounds are closed and supermarkets and pharmacies and gas stations remain open. it seems these lockdowns are coming and going and we really do not know when to expect another one? haidi: yes, one thing about this pandemic and its management,

even in places that have managed it really well, is that it is never a straight line. right? here in sydney, and you are taking a picture of a beautiful start to the week here in sydney. we have the first doses of the astrazeneca vaccine arriving on our sunny shores, the shot that most australians will eventually receive. 15 million jabs will be manufactured by csl here in australia, they are scheduled to begin march 8. in terms of the role out, -- thousand postulates have been vaccinated so far. josh frydenberg is still planning to support. he told sky news he is looking at ways to support sectors and coding aviation, already received 459 aussie dollars under the program. turning to the other big market

store here in australia, bonds are rallying in early asian trading, investors focused on yield after last week's turmoil. garth reynolds, we'd of the rba has been on the front line in one of the first central banks having to respond to last week's bond turmoil. what are investors looking for from the rba this week? >> i think investors will be looking for a steady hand from the rba. there has been a welcomed drop back in yellow. -- yield. aussie 10 year yield came back 19 basis points at the open in a catch-up move. if you are a bondholder you do not want to see moves of that magnitude, not even on the downside, you want something more boring than that. so, the rba had unprecedented weekly bond purchases last week, with the possible exception of

the very first week when they started qe, and really ramped up yield target purchases. because the bond purchase program is set at pretty much set at 5 billion per week. so i think there is a strong expectation there will be more yield target purchases we will see, a bit extra coming from the rba on the purchase front. and then tomorrow at tomorrow's meeting, you would expect no changes on the policy front. and perhaps commentary on the idea that the rba is not going to rush to remove accommodation, strong reiteration that they expect to keep the cash rate target where it is for at least three years, and if there are any short-term jobs and inflation -- jumps in inflation,

and that is part of what speech the bond market, if the art short-term jobs and inflation, they would look through those. haidi: let's talk about the yield target and rba. i have to wonder how committed are they to the yield target and how painful could it get? >> i mean, the rba is, they are a very conservative institution. and a very pragmatic one, too. so they are not about to step back. there also not about to get panicked as it were. so, we had a mini run on the yield front back in december, when the rba boosted purchases. they boosted purchases in a fairly determined and call fashion. and they stuck with them until they were certain things had come down. so i think that is the sort of

response you will see here. i could be wrong obviously but i would expect extra purchases by today and thursday. not on wednesday because that is when they by state government bonds. and on tuesday, a lot of stay the course. we have not had any serious turnaround in the key data points. we have had some encouraging turnarounds in the economy. but i think the rba would emphasize that it is still very early days, until we get a vaccine, until we get something like international economic normalization, the rba is not about to relax. haidi: what about the aussie dollar after the massive reversal in the friday session? is the longer-term projection for the aussie still looking bullish? >> i think it is pretty bullish

and it might have become more bullish in the short-term, now that you have had a flush out in positioning. with the aussie dollar, the basic thing is that iron ore is still up at $172 per metric tonne. looking at the singapore traded futures, and that is near record highs, and way, way above the average range over the last five years. so, with that being such a key input for the australian economy and such a key input for demand for the australian dollar, i think you're going to struggle to have a sustained decline in the aussie from here. and the move back up toward 80 looks more likely. we are probably entering a month or two of sort of a battleground between about .76 and .80.

shery: bloomberg's asia mliv editor. let's stay the focus on yields in today's morning calls. it has been all about the bond rally. we got arrested on friday. but we have seen many outlooks when it comes to the pain threshold in the bond markets affecting stocks as well. what are you hearing? sophie: from credit suisse, they are saying the pain threshold for stocks from rising u.s. yields at the 2% level with global em the most vulnerable to that rise, while japan seems to be the biggest winner for the rise in nominal yields. credit suisse sees the encz mark for treasuries hit 1.8%-two percent on fiscal pressure, savings and higher than express -- expected u.s. gdp growth. higher yields making for pro cyclical conditions so credit suisse increased its over position on next attitude life

companies trimming exposure to non-semiconductors, tech and utilities. haidi: saying emerging markets could stay under pressure in the absence of a more concerted effort to slow rising yields. so, which currencies are looking vulnerable this time around? sophie: looking at history two the 2013 paper tantrum, the fragile economies got shaken. last week we had the reality , lira-- ryal, lira and rand leading selloffs. td securities singh it may be too early to think about buying the debt. -- the dip. citigroup sang stain about 20 out asian currency declines are likely to be more orderly than em peers due to better card accounts, economic outperformance, and the strong yuan serving as an anchor, and

they are noting -- and others are noting opportunities in em commodity currencies, as a rally for copper to oil as a buffer to rising yields. shery: rising yields concerns about inflation and an overheating economy. an upcoming relief package. president biden's relief aid heading to the senate after the house passed a bill saturday. biden called upon lawmakers to quickly approve the aid. pres. biden: we have no time to waste. if we act now, decisively, quickly and boldly, we can finally get ahead of this virus. we can finally get our economy moving again. shery: joining us is a partner and head of political strategy, tina farnam. the $1.9 trillion package, perhaps this was the opening bid, what size package could we expect to come out of the

senate? >> welcome a smaller one i think is what is likely. as you said, it is the opening bet -- bid. the treasury secretary, the fed, have all lined up behind this gargantuan fiscal stimulus package. but republicans in congress are having none of it and as he saw there was not a single you know cross party vote in the house. i say no chance of that in the senate, until a whittle down number somewhere between 1 trillion and 1.5 trillion seems more likely. shery: we have seen one part of the package, the $50 per hour minimum wage, -- $15 per hour minimum wage, that would not be

able to be incorporated in the senate side of things. where do we stand with that? >> unfortunately in some ways support for this bill may hurt it. because the u.s. men the wage has not moved for many years. -- the u.s. minimum wage has not moved for many years. it does look like the sacrificial lamb on the altar of getting stimulus passed by march 11 when medio -- millions of americans lose benefits. haidi: time is of the essence. how important is the aid in the stimulus packages targeted. it is still a firefighting package, whatever it takes, throwing every thing of stimulus. >> i think so.

i have been based in london for 20 years now. we don't have that kind of partisan wrangling over these coronavirus aid packages here and there k -- here in the u.k. we are about to have a budget announcement from the conservative chancellor. it will be full of similar and not as large, measures to keep the economy, small businesses and families afloat. in the u.s. political polarization is rather unique among oecd countries in this unprecedented crisis. i have to say looks different abroad than it probably does to americans who say we cannot write blank checks indefinitely for everyone. haidi: we see president biden potentially facing a geopolitical challenge, the first and his presidency.

he justified the use of the war powers act in terms of the airstrike in eastern syria. is this something that could cause dissatisfaction within the democratic camp? >> well, again, somehow it seems longer but we are seven weeks into this administration -- a month, since inauguration day. it will be another disappointment to the progressive wing that president biden use force in eastern syria against militants, iranian-allied militants, using the war powers act. perhaps more of a concern for markets will be that tehran has just turned down the european union's invitation to resume talks over the jp coa, the diplomatic package. between those two developments, i think markets are going to push iran risk further up the radar.

but president biden is clearly signaling america is back. that is not going to stop u.s. allies and continuing to really test what that means. >> great to have you this, partner a global plan to go strategy. this hour the australian government is considering further help for headline from such as qantas who are still struggling with follow from the pandemic as the program heads to a conclusion. treasurer josh frydenberg says ministers are looking at other measures to support is no. quant -- to sport business. qantas has so far receive the equivalent of $354 million. the closure of a flagship mall in calhoun after coronavirus cases. it will undergo a deep cleaning and what reopen before tuesday

at the earliest. an outbreak of 44 covid cases at a restaurant in the mall. >> spotify is eyeing potentially one billing more customers as it plans its broadest market expansion to date across asia, africa and the caribbean. the music streaming service plans to offer cheap lansing countries with growing or lower purchasing power. the vp of marked and subscriber growth -- market and subscriber wrote spoke exclusively to bloomberg. >> this is part of our expansion and part of our commitment to building a borderless audio echo system across the world. asia has been an exciting region for us for many years. we have seen strong growth coming out of indonesia, the philippines, india and thailand. opening up these markets across

the asia-pacific region, we think will be a strong use of growth play for us for many years to come. juliette: what sort of revenue per use are you targeting? >> when it comes to premium plans across markets, we make sure we do homework and plan accordingly for each market. our pricing each market is different, depending on things like purchasing power and macroeconomic factors. the launch price for premium across markets like pakistan and sri lanka are about two dollars-three dollars while in established markets like singapore it is close to eight u.s. dollars and australia close to 10 u.s. dollars juliette: we do believe our pricing be slightly lower in emerging markets with young online savvy populations. over time as these markets grow and purchasing power increases, we will see a strong project tree -- target projector across these markets. juliette: in one market china, is your china strategy to go

further than that? >> we have no plan for this moment to launch directly in china. we are very excited about our partnership and investment in tencent, truly the local leader in china. we think that will have a very successful continued growth in that market. juliette: are you concerned with the move in china or moving more forward of what you seen and the likes of google and facebook that have faced many hurdles? >> not really, we have no further comments on that topic. haidi: we want to talk about podcasts and no spotify has been investing here. juliette: there are plans to monetize as well. city did put out a note saying some of their big investments you put into podcasts, the likes of joe rogan, the sussex is, may not pay off in time for shareholders, what is your view on trying to monetize podcasts.

for podcasters themselves and for subscription user growth? >> we are excited about our venture into podcasts. we see a strong demand from consumers to gobble up and eat up all the podcast content we are providing on our service. when it comes to some of the biggest podcast moves we have done to date of course the ringer, joe rogan and the renegade with obama. we just launched into podcasts he day with bark obama and bruised springsteen -- with barack obama and bruce springsteen. we are seeing stronger brought than projected and promising signs run monetization. one thing we are seeing from our partner tencent when we look at innovation in china, is clearly lots of new types of monetization models. one way we are also bringing out beta test this year is paid podcasts, where the crater can set a price for their podcasts and put that out to market. that is one way of innovating around the format. juliette: clubhouse gaining

traction, do platform to listen to some of these conversations? >> clubhouse is an exciting experience. i have tried it a couple of times myself. i think we are in the market in the world where attention for consumers come from many forms and places. as long as we stay focused on building an amazing experience across verticals we are and, we are excited about user traction we see from that. juliette: what about concern about competition in the likes of apple when they have the hardware on their platform, you by an iphone and you have apple on there. is hardware something spotify would look at down the track? >> we think the strengths of our service and experience is that we are available across all platforms, and not tied to an ecosystem. for families and consumers these days, openness and being able to consume content across a wide

array of platforms is something they appreciate and put a value two. we think being a platform on top of the apple os and windows and android and so on is something valuable that people will continue to invest in. we are looking at lots of interesting use cases as consumers go around their life, how can we be integrated into cars and so on. but we have no big plans in that area specifically. haidi: let's take a look at stocks we are watching at the start of trading in sydney. sophie: watching qantas and relevant companies after australia's treasurer josh frydenberg says measures are being considered for the pandemic after the job keeper program ends this month. keeping an eye treasury white as well after the company announced it is letting go as many as 60 of its china based team to manage the impact of tariffs. and reported on the full-year net loss of one billion

australian dollars and withheld the final dividend. coal producer, shanghai also affected by china's coal infrastructure. shery: we will be watching stocks closely as korea and taiwan are on holiday. the market open in city is next. this is bloomberg. ♪

romaine: a very good -- haidi: a very good morning. we are counting down to asia's market open. shery: welcome to "bloomberg daybreak: asia." our top stories, asia starting marching cautious faction as wing last week's bond turmoil and moving to calm nerves. china's recovery so last month as business closed forhe