haidi: good morning. we are counting down to asia's major market open. shery: welcome to daybreak asia -- asian markets like to extend gains we saw on wall street and central banks indicate they will maintain support. the s&p 500 had its best day in nine months. bitcoin rallies again after a volatile weekend.

city and goldman raise their interest. city says bitcoin could be the currency of choice for global trade. haidi: jamie dimon says he would like staff to take a vaccine in return to the office, but a shot will not be mandatory for now. our exclusive interview coming up. shery: let's get started with breaking news out of south korea. industrial production numbers for the month of january and a mixed picture when it comes to month on month numbers. we are seeing a contraction of 1.6%, missing expectations of a slight increase. also a contraction from the previous month in december when we saw a gain of 3.7%. the near number is a beat -- beating expectations of growth of around 6%. a much faster acceleration from the previous month. we have seen a shallow contraction for south korea. the global recovery supporting

south korea exports, not to mention we have a vaccine rollout in south korea that we will be watching. we will be watching manufacturing numbers later. and we will have our eyes on the korean market. haidi: let's take a look at the start of trading in sydney. the recovery rebound continuing. sophie: we see gains after the month of august, the global rebound will help lift cyclicals in sydney. gaining about .4% this morning. the rba decision is expected to maintain a dovish stance and expect the central banks will ramp up its qe. we are seeing bond markets in austria and new zealand study after the moves we saw yesterday and the aussie dollar holding around that 78 level.

and ahead of the open in japan, taking a look at nikkei futures, we see slight gains while the yen is trading near and august low. traders are looking for an option later this tuesday. s&p e-mini's higher after the benchmark markets test session in almost nine months. small caps gained 3% even as yields cheapened. treasury futures gaining ground this morning and oil coming under pressure. goldman says the clock is ticking on crude as the industry shifts away from long-term investments. the metals market will overtake energy amid this commodity super cycle that he is seeing. haidi: our next guest is bullish on tech, health care and biotech. joining us now is the founder of

carol pepper -- the chart showing the bullish charge we have seen in trading today. the buying pressure in equities pushing that tick index to the highest intraday rally since july. but we continue to see rising rates as well. not as much as we saw last week. i wonder if some of your calls like tech and biotech may be a little challenged given the rate environment? guest: i think my calls are accurate. i manage money for families with over $100 million, long-term investors as opposed to day traders, and i think we are about to start a really good cycle of growth. once this stimulus bill gets

passed in the united states and we know where we stand, we are on for a good run of growth stocks. europe has signaled [indiscernible] and we have to listen to them. shery: two-year print on the recovery, we saw number from the u.s., accelerating at the fastest pace in three years or so. how do you bet on that? carol: i think there will be fantastic opportunities in the value sector. it's another long-term play because once we have the stimulus in the united states supporting these companies, they will be able to ride through and probably on the others of this pandemic, even earlier than we hope, the fall will be a meaningful recovery around the world.

this stimulus will get us there. the government support will get us through the next six months and then things will move on their own momentum. haidi: you say what we saw last week with the bond turmoil smelled like hedge fund manipulation. can you elaborate on why you feel that way? carol: those guys need to trade to make money. rates are going to go up much faster than they thank -- so we are going to make this happen now. i think they get ahead of where the market actually is and try to push forward a thesis, but i think the governments came up around the world and they are not raising rates yet. therefore it was just the market

manipulation. haidi: you see that being a blip despite growth differentials and the commodity super cycle supporting these views? carol: i think in the long-term, we are talking two or three years out. but any of the virus variants are going to be challenged by the vaccine. we don't know how long it will take to get reopened. i think it is aggressive and i don't believe it. i think that's the message you are hearing and i would rather [indiscernible] shery: we see investments from

ev's to pod stocks. what are you seeing? carol: i love the way that they are coming in and a is a fantastic etf that people can buy to get in on these things. you can look at electronic vehicles. for the batteries, -- and it's another great one that i like that follows these technological examinations. all of these are great -- there's still a lot of juice left in the battery but it has to keep running.

rapidly moving toward legalization everywhere in the world. i know this because some of my family is involved in these sectors. to open up the world to legalize cannabis and hemp and recreational cannabis, that's another huge play that will come out over the next four or five years. for electronic vehicles -- i think ev and cannabis are two places to play and make some money in the long run over the next two or three years. always great to have -- haidi: always great to have you with us. you can get more on daybreak right there on your mobile in a bloomberg anywhere app. let's get you to first word

headlines with vonnie quinn. vonnie: hang seng index is posting its biggest overhaul in five decades and it will affect billions of dollars in funds. also limiting waiting to 8%. last year, the hsi lagged global tears and was seen as overly reliant on old world businesses. bitcoin surged back toward $50,000 after cryptocurrency mining was banned in china. inner mongolia has been a crypto favorite because it's cheap power helps electricity hungry mining. china spent years trying to shrink the mining of digital tokens. the former french president, nicolas sarkozy, has been convicted of corruption and given a year in jail. he is found guilty of helping someone land a prestigious job

in return for favors. the legal system in france means he's unlikely to spend time in prison. myanmar's de facto leader appeared in court via video link accused of incitement to cause fear. she has no legal team and what was her first appearance since being arrested last month. the army continues to fire on demonstrators. the un's as at least 18 people were shot dead by security forces at the weekend. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, we hear from the ceo of the 100 x group which a -- it's hitting the equivalent of a trillion dollars in the past year. up next, johnson & johnson sees vaccine supply constraints

easing in the u.s. but the world health organization warns governments not to rely on vaccines alone. this is bloomberg. ♪

shery: the head of jp morgan says it would be hard to make the covid-19 vaccination mandatory, but hopes workers will take it. jamie dimon says work from home measures were not sustainable for all employees and wants to see a return to the office. he also says the u.s. economy is at risk of overheating. jamie: getting through covid is critical. it looks like there's light at the end of the tunnel but by the beginning of the summer, but it is not a binary subject. democrats and republicans are like ships passing in the night. there are legitimate complaints

about stuff in this bill it has nothing to do with covid. and there are people suffering that need help and both are true. the unemployed, they need help, small businesses definitely need help, people at the lower end need to be helped. i don't know if you know this but half of the states, revenues went up. do they need help? we are just throwing money at people and there will be another side down. get us through the problem, get the country rolling but try not to overdo it. >> isn't the risk exactly that that if you have places that need help, you over flood the system? jamie: it looks to us like a trillion dollars in trade that is unspent, so there will be money -- there's a good chance you will have a gangbusters

economy for the rest of this year and easily into 2022. the question is does that overheat everything and we don't know yet. i would put that on the things to worry about. i wouldn't worry about it too much. i would worry about covid and nuclear war. i have been very clear, i would not buy 10 year treasuries. >> on covid, we are doing this interview in person, in your office in new york, but still largely empty as are a lot of people's offices. how important is it to have people physically come back to work? jamie: it's very important. i think there will be part of the world where a certain amount of people work from home permanently. you can track productivity and i think a large person -- large portion will prominently work in the office.

and there will be some hybrids where you spend two weeks at home and to ask me office or three days and two days -- so i think it will reduce the need for commercial real estate, but there are huge weaknesses to the zoom world. most of us learned by an apprentices -- apprenticeship system. it's hard to inculcate culture and character and all the things when you have the zoom world -- spontaneous combustion goes away. it's hard to be critical -- you have 15 people on the screen. a deep dive question now looks a little rude. it's amazing how much you learn about your own business, bankers, clients and i met with snowflake and marquette and we learned about technology and systems and you are not going to do that in the zoom world.

bankers and relations, it's hard to develop a deeper relation on the zoom world. >> as for when the vaccine does become available, will you make it mandatory? jamie: it's hard to make it mandatory and there are laws about that. we want people to take it. you usually can't make it mandatory before it is fully accessible and so that question can't even be answered until june. i can see airlines or hotel companies doing it. i can see folks that have branches that are not vaccinated, they can't go in. i would say carrots and sticks, not mandatory. haidi: jamie dimon there speaking with ed hammond. global covid cases rose for the first time in almost two months in the past week. the world health organization says it might be because some

countries may be letting down their guard as new variants spread. u.s. officials are monitoring a new variant that has appeared in new york. let's bring in our senior editor in new york. what is the who hypothesizing about the rise we are seeing in cases? guest: the who is concerned because they see this rise after things had been flattening, particularly in the americas and southeast asia and their concern is people are starting to let down their guard. countries and u.s. states are lifting some of those restrictions and people are feeling complacent. there feeling there is a vaccine and things can go back to normal. and they are saying not so much, especially with these new variants. we heard from dr. fauci and the cdc director who said, really

worn, that it is not time to start letting down your guard as the states have to not lift restrictions. they said the variance could put us back in a very bad position even with the ramp up in the vaccinations nationwide. shery: the johnson & johnson ceo is expecting the u.s. vaccine supply will improve. listen in. >> in the second quarter, we are no longer going to be supply constrained and we are going to be able to open up some requirements as far as who can get the vaccine and who can't and as a result, our throughput logo will go up and we will see a difference about the numbers of patients being vaccinated around our country, let alone the world. shery: vaccine makers correlating with the biden administration. what are we hearing right now?

jodi: the picture is brightening. they just got the vaccination authorized over the weekend. it will deliver 3.9 million doses of that one shot vaccine within the next couple of days. it could immunize 20 million americans by the end of the month and 100 million by the end of june. with that one does, you don't have to come back a second time. it can be refrigerated at less complicated temperatures than the other vaccines, so it can go out to mobile vaccination clinics or mass vaccination clinics pretty easily. so the picture is brightening there. there may be some issues and it still hard to get an appointment for vaccines, but that supply is definitely increasing. haidi: the vaccine picture here

in the u.s. we are going to head to hong kong for big interviews in the few hours. we will discuss the city's budget and the decision to introduce the first duty hike in decades. e-commerce giant coupon seeks to raise more than $3 billion at its new york ipo. one of the biggest listings on at record. we will have more details. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save

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haidi: e-commerce training coupon is looking to raise $3 billion from an ipo in new york. this will rank as one of the largest ever asian listing in the u.s. tell us about the company itself

for those who don't know the company and how significant this listing would be. guest: it is their biggest e-commerce company in korea and it has attracted a lot of international investors. we have seen that they have filed in new york to go public and the price range that they set will be valued at as much as $51 billion. it very significant for korea and it will be one of the biggest asian listings in the u.s. haidi: how significant is the fact that softbank's backing this? crystal: softbank has had its own issues in the last few years

, so they are looking to capitalize on its existing portfolio. a $1 billion check and putting further money in 2018. it would be a big check -- this would be 50 billion, so it would be a big win for softbank. some shareholders are selling shares in the ipo haidi: let's get you a quick check of the latest is this flash headlines. softbank says it has written down its holding in green vault capital and made drop close to zero. the finance firm tried to raise

money ahead of a potential ipo. credit suisse suspended funds that invest in greenfield products. the initial $300 million was half the loss but half what alice were expecting. the company issued record deliveries in december and the momentum is continuing. zoom is projecting annual revenues that would top estimates. physical sales at $3.8 billion. it would be higher than the average forecast. coming up next, some of us really is biggest pension funds

are saying markets have got it wrong and are wagering against the debt markets. we will find out more about why they hold that contrarian view. this is bloomberg. ♪

haidi: we do have the opening of trading in tokyo in about half an hour. the biggest jump in the nikkei futures since the end of december last year. futures trading up in singapore. we have data crossing the bloomberg on the labor markets. taking a little lower than expectations, but remaining unchanged from december. 2.9% is the japan jobless rate for january.

the applicant's ratio, we are waiting on that as well as additional data on how the labor market is continuing to recover from the various lockdowns and state of emergency. it does look like japan will be participating in the bounce back in asian stocks as we get set for another day of rallies. >> the -- shery: 110 jobs available for 100 applicants. the estimate was for a little lower, so for the labor market, it is starting to improve in japan. let's go to sophie for a check of the markets. sophie: we are seeing the yen hold steady near a six-month low. jgb traders today will be looking for the option tuesday.

futures ticking slightly higher and numerous saying yields are attractive. on that, treasury futures are taking higher as the selloff eases for u.s. bonds. market expectations for tightening have moderated. the policy decision on tap later today -- a lot of focus on that. questions on whether they may ramp up there qe buying. we are seeing the aussie share market gain this morning ahead of that with tech and financials leading gains. the aussie dollar slightly under pressure, holding below 78 and we are seeing the three year yield steady around the 12 basis point level this morning. haidi: as interest rates are

supercharge for the world's biggest bond market, some of australia's biggest funds were unfazed. let's get more details. why are they staying so calm? what is the worldview when it comes to real inflation risks? guest: pension funds in australia were incredibly calm in the middle of markets. as traders are dumping treasuries, among those just watching with interest they are calm, so incredibly long term investors and they are not buying the message that they are being sold by bond markets that inflation is coming. most hedge funds we -- most pension funds we talked to say they will struggle to get close to long-term inflation targets. there might be a rise in

inflation but over the long-term, it's not going to last. shery: is that a structural thing how inflation is unfolding right now? we've seen trillions of dollars in stimulus measures. ruth: that's right. it's a bit of a contradiction in some ways. deflationary boards is like technology and technology advances will ultimately overwhelm inflationary ones. they've struggled for years to fortify how technology impacts everything from supply chains to wage growth. but they have stifled price increases. that's not including the jobless rate for the pandemic. about $20 trillion worth of stimulus. pension funds are not convinced. compared to what we saw in the roaring 70's, for example. haidi: how are they positioned as far as the inflection point

where they start looking attractive to these funds? ruth: the majority of them -- they hold zero bonds because they think bonds look expensive. they are going to stay where they are at the moment. and you've got others -- they were short bond duration and during the worst month on record, the fund was up 0.6%. bonds are starting to look attractive again. shery: coming up, we will speak to the group buying one of the worldly this -- world leading

cryptocurrencies. that conversation is next. this is bloomberg. ♪

vonnie: dozens of antigovernment

protesters in hong kong are due back in court tuesday after the first day of their hearing was adjourned when one of the group collapsed and was taken to hospital. they are charged with subversion over a pro-democracy election. the judge must decide if they can be released on bail pending a full trial. some accused of helping the head of nissan escape -- michael taylor and his son peter face up to three years jail for engineering the flight to beirut. they argued the allegations did not constitute a crime and said they could face torture in japan. police have rated one of the most famous soccer clubs in the world. high-ranking former official has been arrested. officers entered the barcelona stadium and a search and seize operation related to an alleged smear campaign against current and former players critical of

the club. the former president is said to be among those arrested. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: let's turn to bitcoin -- it continues to rally and closing in on the $50,000 mark after a volatile weekend session. the world's largest cryptocurrency rising around 9% over the past two days, in part due to strong support from citigroup. su keenan is following the latest elements. strategists are laying out the case for bitcoin to play a bigger role in the bubble financial system. su: absolutely. citigroup making a full throated statement for bitcoin, saying it could play a major role in the future of financial markets and could become the currency of choice for international trade in the years ahead. that, together with a resurgence

in risk assets and the latest session helped bitcoin recover from what was mentioned as a rough ride over the weekend. the cryptocurrency had fallen as low as $43,000. goldman added an assist as well. the big bank is said to be restarting its cryptocurrency trading desk and the source says they had started the desk back in 2018 but scrapped it. there's a possibility that goldman will begin offering bitcoin futures by mid-march. so in the words of one analyst, the more banks that come out with constructive comments on bitcoin, the more likely this speculative bubble we are seeing in bitcoin will continue to grow. it certainly got a big push out of the hole it fell into over the weekend. haidi: we should point out that the recent rally came even though inner mongolia band

cryptocurrency mining and is planning to shut down all such projects by april. su: that seemed to be shrugged off by investors -- they proclamation that all crypto mining will be shut off by april does spur concern the chinese may take more steps to spur bitcoin mining. inner mongolia is favored by the industry due to its cheap power. it's a high energy usage energy -- industry. but bitcoin clearly showing its momentum here. dan loeb, a well manager, said t that he has been doing a deep dive into cryptocurrency and a microstrategy company put strong support behind bitcoin, announcing they bought several hundred more bitcoins, banging its holdings to over $4 billion.

so bitcoins wild ride is far from over, analysts say, but it has come a long way from last week's dumping of the assets do to the rising bond yields. haidi: our next guest runs 100 x group which operates a crypto trading platform which sought trading volume topping a trillion dollars. let's get over to hong kong. >> we are joined by the ceo of 100 x -- welcome to the show. three months into the job, how has it been? >> it has been quite a ride. crypto markets are getting a big push, especially from the institutional side.

being in asia is very interesting because this is where most of the developments are coming from. >> and yorkie priorities right now? >> i think we are on the brink of the maturation for the crypto markets. so getting in a good relationship with regulators and a more licensed regime is the biggest. >> we were having a conversation on just how volatile bitcoin is. before you get massive corporate adoption, that needs to be addressed. in terms of new products, what further goals are there? >> we need more mass-market like plain vanilla products we can use but what else is needed is stability from a regular

framework. it's important to get confidence into the market that there is a good environment and sound basis. this will also support the confidence in the product. some of the products will be volatile and we also need the central bank digital currency and stable coins to support that develop and. >> big used overnight from the pboc -- is that -- it is supporting as we see more product and classic institutional players come into the market. this supports wide acceptance of the product with more classical players coming in. my point of view is it is a

long-lasting positive impact and more regulators will look into this product. i don't see the negative competition at all. >> the digital versions of fiat currencies, but more crypto -- does that latter part need to fall or is the allure and value of using these mainly because they are outside the purview of monetary policy? >> the question is how you want to tackle that one. for the beginning, we will see more centralized approaches before we have an open market. central banks will play a major role, especially for stable coins, central bank digital currencies. but we see positive effects coming from the small public approach to cryptocurrencies. it's hard to see -- you see the space developing quite fast, so

it is hard to see how the development is growing. >> i imagine part of what you are looking at, things like acquisitions -- i know you can't comment specifically on what targets you might have already, but what types of assets would fit your strategy? >> when you look at the development of the crypto market, you see a lot of these players starting a couple of years back are expanding into brokerage and the wider client aspect. and i think we will see how we can support our clients in the full approach of products offered to the markets. from our point of view, this is something we would definitely look at. and yet we would have to see which markets do we tackle with which approach and whether we have interesting players partnering or expanding organically. >> from a client perspective,

what percentage of your clients are corporate's i don't want to use retail investors, but the one that you think is in this space? >> it's hard to say because we don't have a clear definition from a regulatory standpoint. but the products we are offering right now are sophisticated products. we are targeting professional and semi professional traders. we need to expand from phila products to increase the customer base and bring new customers and clients to our platform. for the institutions, these sophisticated products are interesting. >> a lot of people are wondering -- you and i are talking -- i know you can't comment specifically on the case but what was the biggest fallout from what has happened late last year and how are you addressing the fallout? >> i can't and won't comment on

anything that happened there but the most impacting thing is the uncertainty that normally goes around this. bringing this confidence back, we were the inventor of the perpetual swap, the most traded derivatives product in the crypto space and this is -- this power we will use to rise with new products and offerings in pneumatics. -- more markets. >> i used to work at a bank and it was 80% or 90% of what bankers did -- do you have [indiscernible] >> we have a process in place and we have the largest exchange with the 40 k and we implemented that early on. our regulators are not

regulating technology, they are regulating function. as long as you are fulfilling a function, you need to have the processes in place. it's important to get into the regulatory space as we see this as the next step for maturity, so we are reaching out to several regulators globally to see how we can offer a product in these markets on a standardized basis. >> it's interesting a guy like yourself with your type of ground is heading this sort of endeavor. the reason i bring that up is, short distance from where we are now is the world's most valuable exchange. in your view, the future of crypto and all the derivatives, is it inevitable you will see an overlap in mergers and how would you approach that? >> i think there will be a lot of interest into the new digital world and crypto world. maybe a couple of years back, they might have thought about

acquiring one of these exchanges , as you have seen from some of the developments in the u.s. that maybe the value of the new players might surpass the technical ones. as more markets develop, you might see a consolidation effect. how we approach that and have discussions around that and see how and when there are opportunities for collaboration. >> have you been approached? >> i won't comment on that. >> thank you so much. back to you. shery: we do have headlines coming out of japan -- the justice minister see -- speaking right now saying the former nissan executive should face trial in japan, saying japan will work with other countries to secure his return. remember he's facing allegation of financial crimes and is right now in beirut.

lebanon does not have an extradition agreement with japan but the justice minister is being asked about the extradition of michael taylor and his son peter who are handed over to japanese custody. they face a possible print this -- possible prison sentence of three years. we do have breaking eco-data out of japan -- capital spending coming in year on year, a contraction of 4.8 percent for the fourth quarter come a much bigger contraction than was expected. we have seen business investment falling in the previous two quarters. firms still cautious when it comes to the economic recovery in japan. not the double-digit contractions we saw in the previous quarter. capital spending, excluding software contraction of the 6.1%. be sure to tune into bloomberg radio to hear more from the big newsmakers and get in-depth

analysis from the daybreak team. listen via the app or on bloombergradio.com. plenty more ahead. stay with us. ♪

haidi: a report from tokyo says number a is creating a new division for asset banking and

the emerging unit. the new investment arm will control numeral partners and mezzanine partners. the deputy president will be promoted to president. eric lane is leaving goldman sachs as an asset management business to join chase. his department comes a day after news to senior consumer bankers were leaving the lender. the goldman veteran will become ceo at tiger. mongolia says talks with rio tinto on the giant copper and gold buying -- goldmine are ongoing. the government says rio is open to terminating and replacing the deal that underpins the underground expansion. it wants to approve the terms of the deal and an independent opinion on its evaluation. shery: we have japan and south

korea coming online at the top of the hour. here is sophie with the stocks to watch. sophie: watching retailers on the back of the coupang ipo. looking to overturn a ruling on a factory in the u.s. also keeping and i on korean solar companies after the biden administration noted the trump administration had lawfully removed tariff exemptions for the industry. softbank plans to merge its japanese net businesses with lyme core. zoom projected growth above estimates. we also have korean pmi data along with pmi readings from

taiwan after we got production numbers. haidi: coming up, we will ask the goldman-s have -- goldman sachs chief equity -- and the outlook for global manufacturing and commodities with one of the top-ranked forecasters on the terminal. and the market opens in tokyo and coming back after a holiday. asian stocks looking to continue extending the recovery rally. nikkei futures up one point 25%. more to come. this is bloomberg. ♪

shery: welcome to daybreak asia. haidi: asia's major markets have just opened portrayed. top stories is our, asian stocks set to gain. central banks maintain they will continue support. bitcoin rise again, citi says it could be the currency of choice for global trade.

china takes aim at crypto minors. the hang seng index unveils its biggest change in decades. changes include limiting stock prices. shery: japan and south korea coming online. here is sophie with all the action. sophie: stock in japan are gaining ground, the yen is trading near an august low. jgb traders will be looking out for a 30 year option later today. this is in effect if the doj will sue bond markets. softbank shares in focus, the stock gaining ground, after another company revealed its ipo. checking in on the open and south korea. industrial output for the economy coming in stronger than forecast for january, later pmi readings from korea and taiwan. the cosby jumping at the start

of castrated, the korean one is on the front foot this morning. this is concrete on the extra budget from south korea. a ruling party official said it will be 15 filion one -- 15,000,000,000,001. that bill is to be submitted on thursday to parliament. turning to australia, turning to the board, we are seeing stocks extend games in sydney this morning, tech rising along with reflation, materials, industrials and energy stocks. wti slipping for the 660 a barrel mark. aussie yields have studied this tuesday morning. ubs's said there is little upside for the 10 year, and expects they will boost their pace of to e2 defends its targets.

we are seeing cash fields hold steady this morning in asia. bank of america strategist say the fed should revive its operation to deal with issues related to market functioning, and take control of the front and back end of the curve. while bond market volatility has been a big focus for markets of late, goldman saying that economic growth could help offset the risk. haidi: the biggest bump in a year. our next guest, goldman sachs says it -- let's bring in our chief asian-pacific equity strategist. always good to happy with us. we see the recovery rally continuing. what is your thesis when it comes to interpreting the correlation between equity markets performing and what rate markets to? guest: next for having me. the basic idea is that rates are rising, because global growth is

likely to be strong. the numbers around that, in the u.s. in particular, looking at 7% gdp growth this year, fostered by fiscal stimulus, monetary policy, and evidence that faxing deployment is improving -- vaccine deployment is improving. that is significantly above consensus, if you want global growth, looking through 6% growth this year, comfortably above the 5.4% consensus. that should factor into earnings, it is a contest between earnings and equities and some slightly higher interest rates, which we saw concerns about last week. on don's, we think the growth factor will dominate the rate actor -- on balance, we think the growth factor will dominate the rate factor. haidi: let meet directed to this

chart. if a look at zero, posited is topping pre-pandemic levels, negative. if you take a look at this, where'd you see the best opportunities? guest: the market which is going to have the strongest growth this year and next is korea. korea is coming off some weak earnings in 2019. last year was somewhat better, because semiconductors did quite well, the index is heavily weighted towards that sector. we are looking at 59% in korea this year, and further 23% next year. we recently raised those numbers for both ear and it -- both

years. the key reasons are that korea is the most globally sensitive economy and equity market in asia, obviously that should benefit from the cyclical recovery we are seeing globally. on top of that, there has been a compositional shift within korea towards more of the new economy part of the market and away from the traditional, old economy, slower growth areas. the combination of the strong cyclical emphasis, sensitivity, as well as this mixed shift, we think is going to drive significant earnings growth. that is one of the areas we think could really benefit at the type of macroenvironment we are looking at. shery: you are saying growth will offset the rate risk. how much of you -- how much are you factoring that in, given there are so many countries

across asia who might be more sensitive to rates. guest: that is a great question. i do not want to sound as we are blase about concerns about rates. first of all, we have estimated that if there is another 25 basis point increase in u.s. 10 year treasuries from the current rates, 1.4%, we are calibrating our number from 1.5% to 1.75%. we think it is about 5% valuation downside, in other words, the overall valuation could compress by 5%. if there is a 50 basis point increase to about 2% on the u.s. 10 year, with fictive valuations could compress about 8%. bear in mind we are looking for earnings growth to rise over 20%, and next year about 60%. -- 16%. that strong earnings growth we are thinking offset some of the

risks for further evaluation compression if indeed rates continue to rise. within the region, we have noted from various macro modeling, that north asia tends to be more sensitive to growth, and south asia more sensitive to rates. if there is one market to highlight, indonesia is one market that is historically most sensitive to u.s. rates. our allocation tends to favor still north asia over south. and india as well. haidi: talk us a little bit more about china. we have seen a recent selloff on the valuation side of things, we thought perhaps china was cheaper, but it seems as the chart shows, valuations are now at multiyear highs, not necessarily cheap. but will drive the next leg up? guest: the quick answer is

earnings. china is like every other market, unconventional metrics, -- unconventional metrics, the numbers are up at historic highs. that is because you have had strong recovery in markets from the lows last march, in the markets have anticipated a very strong recovery in growth, but the growth has not yet come through, so the forward pe ratios are therefore high. in contrast, if you look at markets against interest rates, must markets including china are comfortably priced, at the mid-of the range where the so-called equity versus bond yields. whichever approach you use, the answer for china is certainly that the market looks attractive versus rates. our view, and be published this yesterday, is that there

probably will be some moderate valuation compression as we go through this year, but that will be more than compensated by the rise in earnings, which we think will be still quite strong, well over 20% this year, 50% next year. 15% next year. haidi: the tech revolution. lumbar on hong kong. -- one word on hong kong. does this move the needle, re-energize hong kong stocks? guest: it could. we published on that this morning. there has been an announcement overnight that constituents might rise to 80. we think that might increase the market cap by about 25%, and the shift of china stocks versus hong kong stocks will increase in favor of china, 58% versus

32% for more china oriented versus hong kong. the new stocks that will come in will be higher growth, the pro forma growth of the hang seng index will be higher than it is now, you pay more for it, 12.5 to 14 times earnings, but with a compensated by better growth opportunities. shery: always great having you on. the cheap equity strategist at goldman sachs. let's get to bonnie quinn but the first word headlines. >> bitcoin surges. mongolia has been a crypto favorite because it's cheap power helps. china has spent years trying to shrink mining. former french president nicholas are causing has been convicted

of corruption and given a year in jail. he was found guilty of offering to have a magistrate do favors. he is charged with illegally exceeding campaign spending limits. his lawyer and a court official were also convicted. man must affect a leader has appeared via a video, accused of an additional charge of incitement. she has no legal team and what was her first appearance since being arrested last month. the army continues to crackdown, firing tear gas at demonstrators. that u.n. says at least 18 people were shot dead by security forces. to americans accused have been moved to japanese custody. michael taylor and his son peter face up to three years jail time.

they argued that the allegations against them -- [indiscernible] they say they can face torture in japan. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: still had we discussed the outlook for global manufacturing outlook. the economics president and chief economist will be with us later this hour. but first, the agreement of dozens of pro-democracy advocates facing subversion charges in hong kong continues. we have the latest, next. this is bloomberg. ♪

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shery: a hong kong court has arraigned the -- after one of the accused collapsed and was taken to hospital.

the charges were the most sweetest to date. our managing editor is in the city. what happened? reporter: [indiscernible] 47 activists appearing in court together. [indiscernible] [inaudible] the judge adjourned proceedings to 11:30 a.m. about three hours from now, they will pick up again. but we are watching is to see if they are released ahead of trial or detained while they await trial on the national security law charges. haidi: we are also seeing turnout in terms of protesters in reaction. what is likely to happen given they are risking arrest cynthia by protesting this -- simply by

protesting this? reporter: this is a real test of the protest movement, which has really been under wraps since the national security law was put in place. yesterday, the police gave warning that they were in breach of the law, that they could make arrests. the interesting thing today is to see what the turnout is. overall, beijing is still trying to clamp down on the democratic composition here, and change the actual system for choosing legislatures, which we expect will happen at the mpc meeting in beijing. -- mpc meeting in beijing. su: haidi: haidi: will be joining us to discuss the decision. shery: a court in myanmar has

brought charges. the charges come as the country saw its deadliest date yet. let's get more details from our south government reporter. what are these charges? reporter: she is already one of more than a thousand people detained by the military. she is already facing six years in prison on charges of illegally importing walkie-talkies, and breaching national disaster management law. the new charges are under the telecommunications law, owning a quitting without licenses -- owning up equipment without licenses. and another one on incitement, the 505 be close.

we are talking about adding several more years to a potential sentence under the other two charges. shery: what more can we see from the international community at a time we are hearing or perhaps her party could be forming a parallel government? reporter: yeah. we have seen yesterday, shaking up the international apparatus, the foreign ministry announcing a staff reshuffle. that has been the reaction from the military. today, there is going to be an important meeting. the foreign minister holding his first informal meeting to discuss myanmar, the first gathering since the february 1 two. you have some parties within that regional block that have

advocated a bit more for a harsher response. indonesia has expressed deep concern that the escalating violence in the country, has urged restraint. at the same time, the body has had very little reaction, has not even recognized that a coup happened, has not recognized who the perpetrators are. we are going to see, hopefully, some kind of bend towards a resolution. shery: the latest on myanmar. coming up, china's inner mongolia has banned cryptocurrency mining. details ahead. this is bloomberg. ♪

haidi: china is taking aim at

power-hungry crypto minors. saying it will shut project by april. new digital coin projects are being banned. we have more. it did not make much of a blip in terms of sentiment, but what are the implications? reporter: it could reduce the supply, for sure. once that was reported yesterday, bitcoin's price did start to rise, actually just went above 50,000 again. shery: this coming at a time where we see more interest in bitcoin, even goldman sachs restarting a trading desk. reporter: goldman is looking into it, another company has filed to list the first bitcoin etf. we had a report from citigroup saying they think bitcoin could

be big in international trade. there are definitely a lot of people who are expressing more interest in it, 50,000 -- as of december it was not above 20,000. even though it has bounced around, it is still quite significant from where it was a couple months ago. haidi: we are also hearing from new york's top law enforcement officer blasting what he sees as high-risk and unstable crypto markets. the idea that crypto is becoming more mainstream is not without its critics. reporter: right. you do have issues where there is illicit activity that is done using crypto, you have problems with it, you have theft from exchanges. there are definitely negatives to crypto. haidi: albertine editor with her

take. . as a quick check of the latest business-class headlines. south korea company is seeking to raise as much as 3.6 billion dollars from its near ipo, which would rank as one of the largest ever asian listings in the u.s.. it is offering 120 million shares at $30 each, meaning at the valuation of as much as $51 billion. this would be another windfall for softbank group which invested $1 billion in 2015. shery: softbank's vision find is said to have substantially written down on $.5 billion holding in green capital, may drop the valuation close to zero. we are told the decision came at the end of last year, as a supply chain finance firm tried to raise money ahead of a potential ipo. credits weise has suspended funds that engrossed in their

products -- that invest in their products. haidi: eric lane is leaving goldman sachs. 's departure comes one day after news that two senior bankers were also leaving the lender for a walmart startup. the 25 year goldman veteran will become president and coo at tiger, which has told investors he wfocus on clients and infrastructures. shery: a report from tokyo says they are creating a new division to replace asset management. the nikkei news says the new investment arm -- it also says asset management deputy president will be promoted to president. haidi: google is being told to explain how its search engine operates and how it makes money, as authorities try to prove a monopoly.

the justice department and state attorneys general want information on search results, and had given google 30 days to respond. the request started under president trump, and the biden administration is continuing to suit. shery: apple has reopened all of its 270 u.s. retail stores after covid related closures, locations in texas rounding off the return. many outlets are operating via appointment only or apple store express, which offers bank style tellers to make purchases. haidi: let's take a look at the state of play, the second day of a rebound rally in the nikkei, up by 1%, asian stocks extending the global equity rally, shaking off concerns about high bond yields, they continue to stabilize. the coffee up 2.5%, -- the cost be up 2.5%.

looking to the governor to follow up on bond purchases later on today. he restocks also up by a 10th of 1%. we get the latest on the hang seng index next. this is bloomberg. ♪

>> we have breaking news out of south korea and taiwan. the pmi manufacturing numbers are coming out at 55.3, firmly in expansion territory, improving from the previous month. this would be the fifth consecutive month of gains for pmi numbers. the manufacturing pmi for time won coming in. this would be the eighth consecutive month of expansion territory for taiwan's manufacturing numbers. a very strong numbers in the

korean and taiwanese economies. both places are seeing a very strong chip manufacturing. -- both places are seeing very strong. chip manufacturing numbers -- both places are seeing very strong chip manufacturing numbers. >> we are seeing a little drop in a comes to net exports. the fourth quarter, we are seeing that number at a contraction of .1%. haidi: experts cutting attends of 1% -- .1%. widening from that 10 billion we had in the previous quarter. this as we continue to see iron and other commodities's demand

remaining strong despite the trade-off with the ashtray to with china -- the trade standoff with china. there has been a lot of supreme measures on the back of the pandemic recovery. we are staying with australia, the reserve bank of australia, the government bond market continues. kathleen hays is here with more. we saw the rda doubled down on monday. -- double down on monday. what is the backtalk that the governor is facing? >> is a global bond selloff. when years are rising, it is no surprise that traders, hedge funds are getting an idea about

how they can test the central banks. including the reserve bank of australia. yesterday was kind of a historic bond market. let's look at this bloomberg chart. just showing the big move up in price. the 10 year australian bond is trading around 1.6%. it may move up about 18 basis points before -- it made a move up about 18 basis points before falling sharply. that was the biggest drop in yield since 2002. the other biggest onewest -- people were wondering what in particular the reserve bank of australia is going to do. they brought long-term bonds yesterday after a surprise purchase on friday of the three year bond. what is expected today, first of

all, let's look at their list -- the list. 0.10%. that is first on the list. then they have the quantitative easing bond buying program and stick with a second round of bond buying that they announced will start in april. the question is if they will take steps to toughen up on their yield curve control. let's look at another bloomberg chart. what many people are suggesting they do is extend the bond yield target from the april of 2024 bond. that is the white line along the bottom where you can see the yield that has been the, pretty well behaved.

the november 2012 bond came down after soaring on friday. there is some kind of hint that this is where they are heading. haidi: we have heard them saying that they could get asset purchases becoming more flexible in order to control market volatility? what is the prognosis? >> there are a lot of tweaks on the table but powerful tweaks. remember, there is a global reflation that growth. many people in particular got this virus under control. that has fostered many things. arise a business, this peaked at 7.5% last year -- a rise in business, this peaked at 7.5

percent last year. let's wait to hear what we hear from the rda about the home prices surging by the most since 2003 and february -- in february. that is a pretty big move. if they buy more bonds, that is stimulating by one cents but that will keep the yields down and allow the home prices and mortgage rates to continue their fiery path. they are in a tough spot. shery: that was kathleen hays. you can find more analysis, commentary about the rba decision. do check that out. in the meantime, we are a little bit over a half-hour of trading

in japan. >> markets are steadying. you have text -- tech, financials and materials. the are b.i. falling for a 16th straight day. we are seeing out sizes in seoul. the costs are added about 2.6% this morning. there hoping to help list the benchmark. we are seeing korean chip and battery makers leading the gain. you have samsung shares up nearly 3% this morning. this is after zoom's optimistic guidance. we have some retailers on the rise after --

jumping by 12% in tokyo. shery: we will also be watching the chinese markets. changes include boosting the number of constituents and capping the weighting of any one company. all of the -- were all of the proposals accepted. ? >> they were. the wonder proposal -- the one proposal that had less, instead of there being no weight whatsoever for big chinese companies, they will be subject to this for at least three months. that was the only slightly controversial one.

they are increasing the number of constituents 280 by mid next year and they are hoping to 100 -- increase the number of constituents to 80 by mid next year and there hoping to get it to 100. new stocks or second over the things like alibaba where the cap is currently five cents, that can increase to eight cents. we can see some paths of flow into alibaba after those changes take effect. >> it is an important question. there was a lot of noise around that because the ideas are that the hang seng index will not

just be another chinese stock index. the hang seng index has proposed that it will maintain 20 or 25 of its constituents and they will be classified as hong kong firms. that means they are either based here or they would derive the majority of the revenue from the city. that never can be evaluated over two years. the weighting of hong kong firms was just 42% at the end of last year. the idea is to increase it or at least 19 at that level -- maintain it at that level. >> take a look at where the global economy is heading. we will get our guest's

predictions next. this is bloomberg. ♪

>> this is daybreak: asia. dozens of antigovernment protesters in hong kong are due back in court on tuesday after the first day of their hearings was adjourned after one of the group collapsed and was taken to the hospital.

the judge must decide if the group can be released on bail pending a full trial. the former french president has been convicted of corruption and given a year in jail. he was found guilty of having a magistrate do favors for him. he is unlikely to spend any time in prison. his lawyer and the court officials were also convicted. high-ranking former officials have been arrested. officers entered barcelona's stadium. former players are critical of the club. the former president of barcelona is said to be among those arrested. global news, 24 hours a day on

air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. shery: most pmi readings expanding during the new year holiday. u.s. manufacturing expanding in february at the fastest pace in three years. our next guest explains the surge in commodity prices, mati currencies and stocks as well. it is always great to have you with us. this chart shows how the pmi numbers have been expanding across asia. we have been counter productive already in the equity markets, is this a concern? >> i think there are a few pieces. when you see a rise in industrial metals prices, that is very normal.

these are usually the first prices to fall, the first to recover as well. right now, global manufacturing is really hot because people are still buying physical goods. is the risk of inflation? yes. that is more of a year on year based on fact rather than expecting run materials prices will result in a significant short-term impact for consumers downstream. shery: what you make of all of this commodity super cycle talk? are we saying the structural change that could point to a super cycle at this point? shery: money is -- jason: money is cheap, quantitative easing is continuing. banks are trying to tow the line and say don't worry, we are not

going to become more hawkish, don't worry about inflation and all of that keeps the money cheap, it keeps demand for physical goods up and it has really resulted in a significant rise in asset valuations across asset classes as we have seen a crowding out of risk-free assets by central bank buying. shery: where do we go from here when it comes to currencies? that will affect the other for asia as well. jason: i think we will see a mixed year. in q2, you're on your inflation out of the u.s. is going to look pretty big. probably around the 2.5 level. that is going to give the dollar up the big bump in q2 and have

significant ripples across that -- across these markets. inflation will likely ease year on year from the q2 peaks. the commodities demand will probably still really strong throughout the year and that will help those emerging-market currencies. we have questions about other things that i think will be a little bit more of a surprise for markets ahead. shery: is this the beginning of the worst when it comes to oil? jason: i don't think so. opec has a lot of extra supply sitting on the sidelines. they are meeting later this week and they might open up a little more of that but travel will be much stronger later this year

and even stronger next year that is this year as vaccinations proceed. for oil prices, those will probably keep rising because oil will remain a significant part of the global energy mix for many decades to come. even though their priorities are in electric vehicles, it will not make oil go away as an important transportation factor. shery: we always appreciate your time. the president is expected moderation in the medium and long-term. >> it was an internal issue. it was an operator issue that was fixed and is back up and running. >> is this likely to happen again? does this undermine the fed's

argument that you should be the main paymaster? >> i don't think this will happen again. these things to happen. systems do click up and click down. i think we have addressed this one. >> employment is the highest in two years. prices paid is the highest since 2008. what struck me about all of that where the comments from manufacturers. you have people saying that things are now out of control, everything is a mess and we are seeing widescale shortages. we are so overloaded with orders and don't have the personnel to get product out the door on schedule. prices are rising so rapidly. early overheating in manufacturing -- are we

overheating in manufacturing? >> you do see this situation, a lot of them close down for a few months last year. a lot of the excess savings in people's pockets led people rotating on goods. there is a lot of demand. when you're in a manufacturing job, is not just like opening up another line. people have been working at 110% but demand has continued to be extremely strong for anything related to time at home, outdoor recreation, those kinds of expenditures. i hear the same thing you saw in that survey which is that the manufacturing sector is really busy and working hard to keep up . i do think we will have a price

fall in the spring because we will have pent-up demand. i do think we will see that price pressure. >> some of your colleagues dismissed the bond market moves as a sign of confidence in the economy and said the inflation moves we are expecting will be short-lived. but traders say it is not that simple. at the shorter end, there is a lack of repo collateral. repo trading went negative a couple of times. do you see anything in the markets that the fed will have to address? >> i focus on some of the fundamentals. we are rounding it over the next few months that are deflationary last year. numbers will look a little bit higher than normal.

deflation is a long-term phenomenon. it is based on what people expect prices to be. i am not hearing a sense of overwhelming desire or intent to be escalating prices beyond normal levels. i think we will see some pressure. >> a whole host of policymakers are prepared to speak at various consequences -- conferences. this is bloomberg. ♪

>> a quick check of the latest business flash headlines. a restructuring plan to keep it flying. the sources may come via convertible securities. zoom is projecting annual revenue that would top estimates at $3.8 billion. projected revenue growth of 43% is short of the rates that we saw in the 12 month through january. posting a wider than aspect of

us in the fourth quarter your after they staved off bankruptcy. >> we will be watching nio when the chinese markets open. let's go to sophia. sophia: we are looking at ev stocks following nio's disappointing opening. these shares in particular are focusing on this. china's sales will top 1.8 million units this year. the stocks on watch after revenue jumped 100 36% in february. the first gain in 17 months.

flipping the page, we are keeping a close eye on chinese mining and crypt over they did stocks -- crypto related stocks. this region aims to reduce carbon emissions and control energy consumption sharing. shery: coming up, cardio management looks up what rising bond yields might mean for emerging markets. william fong takes us through what the asian revamp means for markets. paul chan will join to discuss the budget and the decision to -- that is it from daybreak asia.

our market coverage continues as we look toward the open of hong kong and shenzhen. this is bloomberg. ♪

david: is no clock a.m. in beijing and shanghai -- tom: it is 9:00 in beijing and shanghai, i am tom mackenzie. david: i am david ingles. central bank indicate that they maintain -- will maintain support. investors are rushing back to