haidi: good morning, we're counting down to asia's maker market opens. shery: welcome to bloomberg asia, our top stories is our, then asked 100 sees its biggest rally since mid-november. china and the u.s. are considering their first face-to-face toxins president biden took office.

they may meet in alaska. share sales could potentially bound -- value the company and $58 million. paypal takes on their home turf, a growing competition and the fast-growing buy now pay later sector. haidi: let's take a look at the set up in sydney as trading gets underway, risk on rebound at wall street, we are seeing trading with some upside coming through after the two day events. tech shares in particular, we saw the nasdaq rally, after shares in sydney this morning getting 5%. energy shares trading around 64 bucks a barrel, time for a

pullback. let's flip the board, we got remarks from rba governor, a pushback on market outlook for tightening, we are seeing yields louise, 10 year about five basis points early in the cash session. dollar holding above 77. this is in the face of a weaker dollar, this as u.s. yields also retreat ahead of the u.s. stimulus bill, offshore you on -- officer u.n. -- offshore u.n. holding strong. like the yen given the current environment. treasury futures higher, this is the tax yields fell following a solid three year option. 30 year reopening's as well. shery: let's get more of that on the treasuries, they lead the charge on the global bond rally,

the s&p markets as well. debt options, that sophie was talking about. we have the 10 year yield and treasury dropping for the first time in five sessions. then, always great having you on, thank you. this on the bloomberg showing what happened today, we are talking about the three or options. strong results, the highest in three years. where were this put us for the rest of the week? we are not done, we are talking about $120 billion of supplies this week that market appetite yes. -- markets have to digest. ben: it is an encouraging sign, markets have options, rate hikes from the federal reserve in the future. in other words, people will get into at the same time we saw

overnight, that seems to be for volunteer at these yield levels, the options tomorrow and thursday, it depends on what happens with the data. you will see tomorrow morning, the claims data on thursday. they are fundamental data points. so, it looks like for today at least, you will get lower yields for stabilization. shery: you expect more of the rotation we have seen recently to continue? ben: i am seeing a big rotation between tech and reopening, last week, a changing of the economic environment. getting stimulus approved.

next week, it will be impact on the economy. that reopening will become more accelerated. would you did see as attack rally -- a tech rally, cyclical tech stocks. those that can actually benefit from a recovery. as we go into the second quarter, and will not be any more about the stay-at-home pandemic. other technology that benefits economic recovery. i think this is what we need. haidi: if you're looking for more defensive tech names, what would they be? ben: you can think about the mainframe ideas, ibm and oracle. you have qualcomm, tech companies that have showed resilience.

stuff attached to the stay-at-home pandemic. things that you had over the last year. the nasdaq, specifically, you have the high flyers. then you have faang stocks, generally the big cap. cyclical technology names you just mentioned. instantly, those manage most of the ceos. a sector that i think is overlooked,. haidi: what are you expecting from the fed at this point, what is the market expecting from the fed? ben: there is somewhat of a rate

hike probability. it was interesting, today in the derivatives market, they floated some of these options, trying to get it by the middle of 2022. what will happen remains to be seen. so far, we have not gotten any clear guidance. the market will look at the meeting next week, so far, it has been mechanical. i call that more of a phantom rate hike. we have to see more economic momentum to see the price increase. shery: dear point, how important is a rate hike if the markets are already pricing fearing the inflation expectations? will this be a self fulfilling spiral that will not be halted

when it comes to inflation pressure? ben: that's an interesting question. on the one hand, you get this idea that there is a rate hike. and we have no real rate hikes coming. that could change if the market starts to feel about the fact that it comes not only fast accelerating but also this economic momentum in the recovery that uses and attract great of inflation expectations. so, measures like the conference board, an extra measure elevated systems, that comes from surveys and could be a different dynamic. at this point, we are still in a new phase. tomorrow, the cpi is important.

i don't think you will see a significant amount increased. haidi: in terms of the other options available, you imagine they would extend the leverage ratio of the banks? ben: i think that is still very up in the air. others are still actively using their tools, in this case, yes he could do these things. inside of berks as they are called. that is really on the table at this point. it is more about, i think, getting a sense of how much progress have we really need in the labor market before we start thinking about tools again. at this point, this is a sign of optimism. it is a sign of disorder.

maybe they needed to use tools, you see other central banks reacting, coming up with an explicit statement, that, on thursday will make some comments in that regard too. haidi: then, always good to have you with us. let's get you to vonnie quinn with headlines. bonnie: -- vonnie: hackers say they have breached data collected in silicon valley. companies infected include tesla , the group targeted the start for caught up.

military rulers of myanmar are cracking down on media outlets to stifle popular protest from let's months coup. the internet regulates silence that night, across the country. the army's increasingly violent, it will suspend operations for a week. reports in tokyo say japanese governments have decided to bar foreign spectators from the upcoming olympic games. they say ministers have concluded that welcoming fans from other country -- other countries would not be viable. even concerns about the variants detected in many countries. the number of domestic fans will be decided next month. zillow is pushing back against bottom market pricing. reiterating that interest rates are like to rise -- are likely to rise by 2024. cash rate increases late next

we're -- late next year in 2023. the governor emphasizes that any change in policy will now require actual, not forecast inflation. global news 24 hours a day, on-air and on bloomberg quick take, powered by more than 2,700 journalists and analysts in more than 120 countries. on vonnie quinn, this is bloomberg. haidi. haidi: watching some early movers in the australian session, let's get back to sophie. >> we are watching the sector in australia, we are seeing a bounce in shares of yearly -- of nearly 9%. zip, halting a four-day bump. rising nearly 7%. moving to the downside, under pressure after futures dropped

under concern that chinese demand is imposing restrictions. they have the potential to return minors on the way down, we have payment players, zip gaining early in the session. haidi: we will be speaking to paypal about the company's push into the buy now pay later space. coming up next, u.s. and china may soon hold their first face-to-face meeting since president biden took office. this is bloomberg. ♪

shery: we are watching closely what is happening in the chinese markets. it has now been turned into the biggest route globally, shocking

investors, you are seeing in the last two weeks or so, plunging 14% from a 13 year high. wiping out more than $1 trillion of value and hammering retail investors at the peak. you can see in this chart, we are seeing the baby declines of over 2% more and more frequent. now, even state intervention from china is not enough to stop that plunge. they are saying history suggest chinese stocks may need follow-up support after the decline. haidi: we will stay with china and beijing, the u.s. is said to be a discussion among top diplomats to reset the strange relationship. tom, early days in terms of what is happening but what we know so far?

tom: early days, this is being reported saying they are in discussions about potentially having a meeting. the first face-to-face high-level meeting since joe biden took office in january. potentially, that is with the s&p is saying, china's top foreign affairs official. presumably, with the u.s. is top diplomats, secretary of state antony blinken. it would be significant, of course, that first high-level face-to-face meeting. tensions remain heightened, and other side, beijing or washington has given much. since the biden administration took over. now, talking about a breakdown in relations, that is considered between the u.k. and china as well. china summoned an ambassador to

china, she pushed back on media curve and reporting restrictions for the free press and particularly the british media as well. china saying she was just giving color, what they described his fake news. the fact that the media sector has been an increasing point between these two countries, tensions around hong kong, another prospect of further tension around media and reporting rights. this is affecting the british independent regulator bands, state media, and china responded by banning the bbc here in china. shery: it is also about tension, we are now in the final stretch of the sessions of meetings.

what is left on the agenda? tom: two sessions, there is a consultant that runs along the national people's congress. tomorrow, you have the national people's congress closing ceremony. we were supposed to get more details on some of the policies and initiatives that have been outlined in the last week. closer to home, today, we have two surprises in consumer price. important because it will give us some sense as to the room or maneuver. it is also worth pointing out that the name, china has put in a curve around some reduction in and around beijing, heavy slaw -- heavy smog levels, underscoring climate challenges that china continues to face in 2021.

haidi: coming up next, south korea is lifting targets for the ipo. it could raise more than $4 billion. this is bloomberg. ♪ billion. this is bloomberg. ♪

shery: a south korean e-commerce giant is lifting its ipo target, now raising his much is much as $4 million. -- $4 billion. crystal, this putting the ipo with some of its top listings in the u.s., including alibaba back in 2014. >> it one of the biggest ipo's of this year so far.

we have seen direct listings on the new york stock exchange, we haven't seen any gigantic ipo's in the u.s. so far. the biggest since alibaba's listing. it is very exciting. haidi: is this the start of an overall trend that we will see more like-minded deals? >> yeah, so, it is interesting. in context, there are quite a few conversations going on between companies in asia, outside of china, talking about coming to the u.s.. there has been a huge wave of chinese companies doing listings in 2018.

and, that had shut down and we have seen a considerable drop in volume. year so far, we have had discussions. it is reasonable to think there will be an uptick in those deals, either as spac targets or ipo candidates. haidi: we do have some breaking news, we are hearing citigroup is punishing investment firms that cap bait -- cap payments in the bank, blocking them from certain debt offerings. among those names include hps investment partners. some of those firms targeted

according to the person who spoke with us. they are not allowing those who hung onto money to access their debt offerings. they can still participate if it is specifically requested for them to join the offering. we have not heard any comment from citigroup on this story but, of course it comes after a shocking ruling by a federal judge. let's get you a quick check of the business flash headlines a sour, gamestop's winning streak continued for a fifth day within stock having a second day of double-digit gains.

the reddit driven frenzy prompting regulations to consider new rules on trading and shortselling. even so, investors are key on tessler again. -- on tessler again. pushing the stock to its biggest gain in a year. that and the bitcoin rally have all raised interest in tesla as well as the ev rivals. that is raising a spring of recent losses that shape the hundred 50 million dollars off tesla's market value. sources tell us they have approached bankers and financial advisors. a better-knownacturer is also underway in hong kong. a sick a quick look at the day

-- -- shery: a sick a quick look at the day ahead for south korea. on the vaccine front, we have the manufacturing partner of astrazeneca having more than 14 trillion orders on its estate. the government has not said whether it would allow the astrazeneca vaccine. the bank of korea releasing its market trend report, watch out for that one at local time. over in japan, this after dow jones reported it injected $400 million into green briar before it's collapsed. that could hit suppliers little bit. they are reporting that the government has come to a decision to exclude overseers from the tokyo olympics we have

that coming up in the summer. a lot of controversy at the limit games. the market opens in tokyo and seoul in about a half-hour. plenty more had, this is bloomberg. ♪ -- plenty moorehead, this is bloomberg. ♪

>> it is the tale of two cities and their highflying ambitions. singapore airlines has about 300 aircrafts. before the pandemic, they flew hundreds of passengers daily through their mega airport hubs. no airline has been immune to the industries worst down torn, -- downturn, but this is sky high. neither has the luxury of a domestic market. lockdowns and travel restrictions have granted almost all of the plans only a tiny fraction of the flag carrying fleets remain in the sick eyes

-- in the skies. how do they survive? rescue packages, they cut 20% of their work forces and slashed other services. governments have restarted talks for a way to travel between the two cities. before the pandemic, they were suffering from hong kong's pro-democracy protest. since then, beijing has raised questions about is future -- its future as asia's preeminent financial sector. that is something singapore used to take for granted, not anymore. singapore airlines have faced such political headwinds and could be ready for a faster takeoff than its rivals. they need flying to add momentum to the economic recovery. haidi: a look there at two of the -- at the pandemic's effect on two of asia's premier carriers.

the airline has already signaled it will not be pretty, following a loss of 1.3 billion u.s. dollars. it's a matter of just how ugly this is, really? >> we do know that things have not gotten any better in the second half of last year. so, it is not going to be good when they announce earnings later today. we have new ways the pandemic rising, which affected a lot of their flights and they had to push back a lot of times to restore some of their flights due to the pandemic. it is not going to be a pretty future. shery: how positive could the

cargo numbers be? >> i think, the cargo is the one bright side for the aviation industry at the moment. with all the passenger planes, a lot of the airlines have been flying in passenger planes. there are, the capacity, that has pushed a lot of the rates are higher because trade still goes on despite the pandemic. it would be the one bright side for cathay, but whether that is enough to offset the passenger side, that still remains to be seen and could be short of expectations. shery: what are we expecting in terms of expenses? we know they perhaps have more cost with hong kong express

carriers as well. >> i think, in the early days, when the pandemic broke, i think expenses were quite harsh and cash fund was high. i think, the airline figures out ways to reduce that cash flow to a minimum. in terms of that, i think cathay has found ways to ease and slow down the cash burden itself. the problem is, even if they did get government support they needed, if they don't restore some of the flights sometime soon, it will be very difficult for them in terms of business. for airlines of this magnitude, it is really critical to see ways where they can

business. haidi: we will have plenty more analysis on those cathay earnings. now, outgoing ionosphere -- i otte ceo spoke to bloomberg's guy johnson and alex deal. >> we will recover but we will be weaker. we will have a fewer number of axis operating, fewer number of [indiscernible] and strongly reacted to this immense short of covid. we will be competitive for the future. then, and the near term, i think

the business will recover and come back stronger. three or four years from now. >> a long way away, the speed of that recovery will depend a number of things. at one of those is government. government appears to be very cautious in terms of setting out a roadmap for industry to come back. if you have had your vaccination, if you have had both of your shots, do you think you should be able to get on an airplane and go wherever you want? >> what we recommend is two things, first of all, we have lost -- we have asked for all passengers to be tested. and now we have vaccination policies everywhere. we should ask government for a

reopening plan, roadmap, air travel. which is consistent with testing and vaccination. the only thing that has successfully had a plan like that is in the u.k., germany, we will be able to have a reopening plan. that is a key issue. governments that have close the border or issue travel restrictions have collapsed. >> do you think that will happen in time for the summer? greece is pleading with other members of the european union to put some sort of process in place to allow this to happen. as you say, they are cautious. germany, in particular looks like it is being very cautious at this point. you think greece will have a good summer? portugal? do you think people will show up on airplanes in northern europe?

spending in the way they would normally spend pre-pandemic. what are you predicting? >> what we are thinking is due to the rollout of the vaccination, it is likely different from one to another. we should see in june, the reopening of borders. that should be acceptable, we would be able to travel.