haidi: good morning. we are counting down to asia's major market shery: welcome to daybreak asia. our top stories this hour. president biden's relief bill wins a narrower in the house. it is the first major legislative success and will be signed into law on friday. asia looks set for a cautious open despite gains on wall street led by a team inflation

report. futures are flat in hong kong. the u.s. and china head back to the table with confirmation of high-level talks in alaska next week. haidi: after another session of futures gains, let's take a look at how the cash open is playing out. sophie: we are seeing aussie little changed after a two year gain. the 10 year yield is edging lower after moves we saw in treasuries overnight. as well as the 10 year option. we have a 30 year option for treasuries ahead. we had kelly telling us earlier there's a move to fiscal qe. the government in australia unveiling a relief package for the tourism and travel related industry. switching out the board to see

how we are faring elsewhere in asia. korean exports, a fast check on that later today. in japan, we are waiting to see whether the nikkei will eke out gains. the chief equity technical strategists saying the rotation of the u.s. stocks that have currently hit the top. the offshore yuan back below the 650 level. we are also digesting chinese credit data. growth less than expected in february. a 30% gain has folks wondering when producers will lose them their tabs given the elevated prices for crude. shery: let's delve deeper into the stimulus talks. now that bill has been passed, president joe biden scoring a major political victory.

this less than two months into his term. the house passes a $1.9 trillion relief bill, paving the way for him to sign into law on friday. kathleen hays is here. when could americans get their stimulus checks? kathleen: sooner than ever. this is something. the house passed the bill. it was a very narrow vote. 220-211. not a single republican voting for it. you see nancy pelosi, speaker of the house, senate majority leader chuck schumer victoriously signing the bill today so the president can sign on friday. there was a big rush. employment benefits expire on march 15. the white house said they will move full speed ahead on implementation of this bill. let's remind ourselves what is in it. $1400 a person.

extending unemployment assistance from the federal government in addition to state benefits. $300 checks. medicaid and more dramatic from what we got under the aca act under president obama. aid to state, local and tribal governments. funds for vaccinations, reopening schools. one of the things republicans have been arguing is this is more than was needed. probably twice what was needed. a bloomberg survey when you look at the $1400 stimulus checks, which a lot of people said should have been more targeted to people who needed the most. a survey showed one third plan to buy -- to save their stimulus checks, supporting this critical view that maybe they do not need them. at the same time, the same survey shows one third of the people they surveyed are going to buy food with these checks.

they are going to make housing payments. maybe it is better to give people a little too much to make sure we get everybody who needs it. the gop not surprising as saying this is an excessive stimulus. it is going to escalate financial risk. economists are on board saying gdp is going to grow 7%. that is the highest we have seen since the korean war bonuses. another issue both sides acknowledge is the debt pilot. you can see the u.s. debt from the federal government has a percentage -- 100%, way higher. by 2050, it will double. this is the thing that concerned investors. there are a couple points to acknowledge that our bloomberg news team in washington has pointed out. for the democrats, they want to make sure they do not lose seats in the house in the midterm election.

that often happens at the two year mark of the president's term. giving lots of money to lots of people they think will help them those votes. the bipartisan divide as well, people are saying, joe biden some important bills to pass this year and next. the most important one coming up next is infrastructure. with such a big divide and the fact that reconciliation cannot be used as a tool to pass some of the things he wants to do, this will be the next big hurdle he has to pass. haidi: stimulus bill has already fueled bids on accelerating inflation, partly driving the surge in bond yields. you take a look at the latest inflation numbers. did that support that view? kathleen: it does show that inflation numbers, consumer price index is, they are buffeted by a lot of different things. the fact that the cpi that takes out food and energy actually

went down a bit at least on the core side because the headline number monthly -- let me tell you that the monthly number was 0.4% in february. a little more than 0.3 in january. core cpi was up much less. now that we look at this chart for the year-over-year numbers, that is a welcome decline in the yellow line. it has pulled back to 1.3% year-over-year. it was up to 1.4%. the headline number keeps rising. that is determined by what is happening with oil prices, what is happening with food prices. some temporary relief. we still have people like a staunch democrat, well respected economist and larry summers saying you are going to see a significant acceleration. that remains to be seen. janet yellen says do not worry about it. it will not be an issue.

haidi: the u.s. has concern secretary of state antony blinken and jake sullivan will be meeting chinese counterparts. we had reports of this yesterday. this meeting, how is it likely to play out given how high level and this is the first big meeting between the two parties? tom: blinken will be coming off a visit to japan and korea with his defense secretary as they tried to rebuild the international alliances in large part to push back against some of china's actions. that is part of the context. sullivan and the security advisors will be in alaska with the chinese counterparts. neither side, they both dug their heels in on the major issues. china has said areas of potential cooperation include

climate change, the global economy and the virus. the u.s. administration has said climate change is something they can address together. lincoln saying this is going to be a one-off meeting unless they get some substantial changes or china and they see evidence of china addressing key concerns. we should take a modest view as to what can be achieved to lincoln himself downplaying expectations. -- what can be achieved. blinken himself downplaying expectations. shery: we have the final day of the national people's congress. what are we expecting? tom: we will have the closing ceremony at 3:00 p.m. local time. we will be looking to see if he flushes out any of these commitments and policies that have been unveiled shared whether that is developing a more robust consumer economy, how is that going to be up lamented, how are pledges around 18% cuts to carbon emissions per

unit of gdp, how is that going to be implanted? anything on hong kong and the changes in the election system and anything the premier says around u.s. and china. all of those issues will be in focus around 4:00 p.m. local time as it all wrapped up. shery: our markets, anchor in beijing. we will have 20 more analysis -- we will of plenty of more analysis. we will be speaking with dnp perry by -- with bnp paribas. you can turn to your bloomberg for more live details and commentary. go to tliv to get the latest from bloomberg expert editors. at stern to vonnie news with the first word headlines. vonnie: china is said to be considering tighter roles for first-time share sales on shanghai star board, raising the bar for listings and requiring

firms to prove technology credentials. regulators may announce the rules next month, facing greater emphasis on hard-core tech and innovation. there will be increased scrutiny of financial health. russia says its decision to slow access to twitter is justified as it has failed to comply with demands to delete some content. moscow says it will put the brakes on until twitter removes more than 3000 pieces of undesirable content. kremlin warns of a potential all-out ban if twitter fails to comply. twitter has been used of supporters of alexei navalny. the social media battle between facebook, google and australia is heading to the added states. lawmakers in washington plan to -- to negotiate with platforms overplay -- overpayments for news content to the law comes after canberra voted to for

social media to compensate australian news publishers for material. australia is to prop up its ailing torah industry by subsidizing airfares over the next few months. about 900 million u.s. dollars will be spent discounting 800,000 tickets to help carriers, hotels and other venues. prime minister morrison says it will help jobs and investments . global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: coming up next, the marlett outlooks from the ubs senior vp. she tell us why she is betting on cyclicals as the rotation into value resumes. this is bloomberg. ♪

shery: u.s. equities advance on optimism for the relief bill as well as a needed report on inflation. our next guest says we will see more gains in the next few months. let's discuss with the private wealth advisor in family office consultant at ubs. i wonder how long this optimism will last, especially this risk on sentiment and the rotation value to cyclicals when at the same time, markets seem to be anxious about inflation. >> that is completely correct. it is the double-edged sword that we are balancing. what is so important is looking at how pandemic restrictions are being eased, or the vaccine deployment is more advanced, it shows a direction to a broader global normalization. knowing there is this light at the end of the pandemic tunnel is incredibly important to the bigger story. whether or not these high yields

we are seeing might create a headwind for stocks, it is not inconsistent to have high yields with stocks going up if growth expectations are a driver and not inflation. i feel all the implications we are getting from the central bank is this is good news, that we are going to see economic recovery. you're going to see a reopening and we are not worried about inflation especially since the unemployment rate is still so high and the economy has slack in it. shery: how are you positioning your portfolio for that? >> we are long-term investors and it is always digging a balanced view. we are rotating out of some of the making cap names. knowing that high interest rates are going to have a negative

impact on growth valuation and repositioned tactically for those value names we think are going to be better positioned. we tend to like those more cyclical type of investments. we like small versus large cap. would like developing versus developed. we like asia and japan. we like chinese equities. we think they are robust earnings trend and they are supportive -- there is supportive monetary policy behind that. haidi: let me get your details on the constructive view on chinese equities. we have seen this selloff. does that mean you are buying the dip and if so, what? >> would like the depth. i am a sucker for a bargain. we like consumer durables. all those positioning in the

digital economy will do better. and also thinking about infrastructure. this feeds into not just in china but where we see tailwinds globally and that has been the renewable space, the sustainable investing space because a lot of these economies have positioned themselves for building back better and committed to a climate agenda, which should bode well in terms of investments and subsidies toward those more climate related, renewable types of investment and that includes those in china. haidi: do investors really start looking to the next big infrastructure long-term stimulus package given how hard a fight it was to get the short-term package through yucca is there a concern about that not being delivered or at least in the way markets are expecting? >> the biggest thing i have been

hearing from everybody from washington and all the way to wall street is does it have to be so big? do we have to have a $1.9 trillion fiscal stimulus package in the u.s.? to quote the federal reserve chair jerome powell's words he has repeated again and again, it is basically -- it is better to go too than too small. the tentative middle zone where we want to see the reopening. we want to see growth. there are so many things that could derail it. even with just the pandemic, we are seeing all these new strains. we are going along as if everything is going to be hunky-dory on the vaccines. there are things that could derail that. going bigger on the stimulus

package is an important signal to the market and particularly for lives and livelihoods. that $ is going to be incredibortant. shery: always great to have you -- haidi: always great to have you. take a look at some of the movers we have been watching. in anticipation of some reaction. qantas over 3% at this point. flat center trading higher. 6% at the moment. web jet up. australia announced it would be subsidizing airfares as part of a 1.2 australian package. this of course as borders are remaining closed at least until october. we have fluctuation when it comes to domestic borders as well. this comes as the job keep repayment subsidies program is

due to run out at the end of the month. coming up next, we'll could be the largest listing of a south korean company in a decade will take thursday. we take a look ahead to the big debut. this is bloomberg. ♪

haidi: a quick check of the latest headlines. a former director has accused -- has been accused of misbehavior. the chinese oil giant plunged into bankruptcy last year. the allegations from someone who spent more than six years include misleading investors in failing to disclose conflicts of interest. bloomberg has been unable to independently verify the claims. see lsa says it has been

complying with the laws and regulations. the firm says it upholds the best international standards and puts the priority on client interests. more chinese companies face being delisted in new york. s&p dow jones confirms that will remove let names affected by u.s. sanctions from march 15. they include advanced micro equipment. the ftse russell has said it will do list shall me and will comment further should courts decide in their favor. digital games company robots became something of an icon during the pandemic. it is one of the few firms that went public for a direct listing without the company issuing new stock. the rise gives them a market value of $40 billion, making it one of the most valuable companies to go public during covid-19. shery: let's take a look at the day ahead for south korea. we will see the recovery in

korean exports sustaining into march the fourth. the defector leader of samsung back in court. hearings resume in the succession case. this includes charges of breach of duty and violations of capital loss. the largest listing by korean company in a decade debuts on the new york stock exchange on thursday. haidi: we will bring out our deals reporter who is following the story. this follows the trend of asian tech firms listing in new york. >> it does. interestingly, it is moving away from china. we are seeing many chinese companies cut the u.s. capital markets in 2018. since the government relationship intensified, we have not seen that many chinese companies. we have seen a large korean

e-commerce company coming to the u.s. shery: what does this mean for softbank? how big of a boon will it be given they have a large stake in the startup? >> softbank has a 25% stake. it is a very decent chunk of the company and very big in dollar value. it will be a win for the vision. we have seen some struggles in the past starting with we work and green seal capital. . those will not the actual gains for now. this is likely not going to be a quick exit for the business fund. for now, we are seeing softbank is going to benefit from goods transaction. it will the -- it will be a while. shery: given they are a

lossmaking company, where are they expected to be investing all this cash? >> in the perspective they filed, it says the majority -- it is for a liquidity issue. they are providing liquidity for insiders and employees. the majority of that -- of the proceeds will be used for general profit purposes. they will look at acquisitions and investments. shery: our bloomberg deals reporter. one of more news and analysis ahead of its debut. go to tliv for commentary from bloomberg's expert editors. coming up next, u.s. china talks are on. antony blinken says he will press beijing at the first face-to-face meeting next week.

this is bloomberg. ♪

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vonnie: this is daybreak: asia. president biden's relief bill is a step closer, carrying its final congressional approval and heading back to the white house for approval. the vote comes two months after he first announced his american rescue plan. it is expected the bill will be signed on friday. biden is seeing resistance to his next economic program. china's most important political party has wound up this year's

meeting having discussed goals for the next year. events in beijing cell leaders target growth of 6% and plans to shakeup the electoral system in hong kong. the conference has no legislative powers but offers proposals to the ceremonial parliament. the nuclear accord appears to soften previous demands the u.s. must lift all sanctions. president romney says tehran is ready to recommit to the deal as long as washington does likewise. his offer drew swift criticism from iranian state media. just to prove italy does not have a monopoly on dramatic eruptions, -- the volcano burst into life north of korea and japan.

seismologists had been expecting the abruption. it is an active volcano, which also erupted last year. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. vonnie quinn. this is bloomberg. haidi: the u.s. and china will hold their first in person meeting in alaska an we. they are expected to tackle some contentious topics. let's discuss what to expect with jude lente. -- jude blanchette. this will be an interesting first meeting. we have heard from antony blinken saying this will be a multidimensional relationship. this is going to be collaborative when it can be, competitive when it should be and adversarial when it must be. is there relationship mature enough to be all those things at the same time? >> certainly not mature enough.

to the point of how to frame the meeting, it is important to remember we are at the beginning of the beginning of this new phase in the bilateral relationship. the united states is in the middle of an extensive posture review of all of its china policy. it is trying to work with allies and partners after four years of unilateralism. the united states is not in a big rush to come to some grand bargain. as you have mentioned, this is a multifaceted competition. i think it is important to moderate expectations for a meeting happening in week. -- in week. we have been tracking a relationship in free-for-all for the better part of a year.

haidi: if this is something of an attitude reset if nothing else, what are the top items on the agenda you think will be there? we have spoken about the areas of collaboration including environmental policy. what will be addressed in these talks? >> i think for beijing, there is a significant number of pressing issues they want to clear off of the bilateral relationship. you have the ongoing case of the huawei ceo in canada, which is an extraordinary irritant for beijing. related to that is the ongoing detention of michael cohen heard. we have a significant number of tariffs on chinese imports, which china would like to clear off. you have a robust number of sanctions the united states has placed on chinese companies and

chinese officials over the past six date months regarding hong kong and shin john. the list is long for why beijing would like to get on the table. from the acted states -- from the united states, it is trying to find a strategic approach. now that has got the tariffs, that as leverage. the biden administration is going to think about how to sequence the removal of tariffs such that you get concessions from beijing. shery: what will drive progress in this relationship if washington is in no hurry to move? >> that is the 64,000 renminbi question in terms of what will be the stabilizing future. i don't think it will be cooperation on climate change. that is one of the elements we have been holding out where there is mutual interest.

right now, the important thing is for the united states and china to have an honest discussion of where the fault lines are. we had pretended these did not exist for a long time. that led to the blowout in tensions under former president donald trump. the ended states needs stat -- the ended states is have a better gauge of where beijing stands. beatty nanus understand the technology front we are in the beginning stage of this. on issues of core national interest, hong kong, these are issues of importance to the it is dates after looking away from human rights issues for four years. this is going to be part and parcel of u.s. policy. honesty is the best thing we can find. it is about constructive dialogue and engagement not for the sake of dialogue and engagement so we can find ways

to come to a competitive equilibrium. shery: washington seems to understand the dangers of having china, a state capitalism model honing in on tech skills. is the u.s. doing enough to counter that, especially when we are talking about industrial policies china might have that the u.s. does not have a response to? >> we do not. we have a very defensive response, which is based on existing tools like export controls. that is essentially plugging holes for the time being. i don't want to keep saying we are at the beginning of the beginning but we are just beginning to see early conversations about how does the united states think about a robust investment in its own capabilities and strengths? you're starting to see some discussion of policy.

the china challenge is provoking that. you are going to see a more concerted discussion of deep investments in u.s. r&d technology ecosystem and immigration reform so we make it easier for high skilled folks to be coming to the country. the biden administration recognizes there is no quick fix to something like economic competition with china. democracies that work on turn limits are not -- on term limits are not great in working -- that is the asymmetry we are trying to overcome. haidi: we are expecting human rights to be one of the pressure points between the two sides. we are expecting reports from the u.s. it would be shocking if what is going on in hong kong is not mentioned in the context of china. you expect these issues to be raised, and where does this

discussion of potential action from the u.s. go from here? >> it is going to be raised. we sell it raised in president biden's first call with xi jinping, which lasted two hours. there is no way the united states cannot raise this given how big of a concern this has been on capitol hill. on hong kong, there are not many good options for the unit it states to think about aside from putting punitive pressure or attempting to exert pain on companies or individuals. xi jinping has said over the last year this is the strategy, this is the course we are taking. we are not going to be shaken by u.s. pressure. we have a demo movable -- a murmur -- an immovable object leading an unstoppable

force. we have the beijing olympics coming up in february next year. we have a rising call of a more diplomatic boycott of that. those voices are going to grow in intensity. shery: boycott by home? we keep thinking of these democratically minded allies coming together to push back against china and perhaps that would be easier for washington to deal with. when it comes to issues like myanmar, we saw almost nothing from asian countries. >> the talking point or the bumper sticker of working with allies to get stuff done on china has proven to be a bumper sticker in part because it is hard to find a coalitions who have overlapping interest on china given the economic relations. this is going to be a significant lift for the biden administration. the u.s. is pivoting off of the

you sign and 8 -- the e.u. if you talk to folks across the european union, they're looking for answers for how they can think of ways to confront chinese capitalism. if you look at asean nations, many of them see china as a revisionist power in the region. even if they have economic enter linkages and see china as the dominant power, a lot of them are looking for leadership of small coalitions to find ways to address specific issues rather than thinking of grand coalitions. that is where the biden administration is headed. shery: sort of a piecemeal process. thank you very much for joining us. the csis chair. we have analysis ahead on the final day of the national

people's congress. up next, a more mixed signal from the boj. officials are set to look at ways to let yields fluctuate more freely. the details ahead. this is bloomberg. ♪

shery: gamestop had a roller

coaster session. triggering multiple volatility holes. volatility soared with more than 70 million shares changing hands. let's get more from the bloomberg equities reporter. is this a retail trader back in the game? is this what is triggering the volatility? >> i don't think anyone exactly knows. today's trading volume was not small individual 10 share trades. there were a lot more trades over 100 shares per trade, which seems to trigger their some other hands in the gamestop story, not the typical reddit traders buying one or two or three shares. it may be brokers trying to snap up shares. a lot of volatility has been

about 22 minutes today. the roller coaster continues. haidi: this is becoming so familiar. what are analysts saying about these wild swings and i guess the fundamentals of the company and the rally we continue to see ? >> td ameritrade compared it to firefighters running into a burning building. i know it seems a little harsh but that is what we are seeing with some of these violent swings. the more analysts you talk to who are following the story closely have gone on to say not much has changed since december other than ryan cohen shaking up the way the company is thinking about their future in terms of focusing on e-commerce. not much has changed despite these rallies. a lot of retailers battling with

short-sellers. haidi: it is going to be interesting to see what happens with those stimulus checks. our bloomberg equities reporter. let's get this dovie -- get to sophie who is taking a look at some of the potential movers. sophie: overnight, i want to show what is going on with the narrative. we are seeing at underway in china. we have had pricey growth stocks being dumped and value plays being bought. valuation between the two has been narrowing. momentum for china's recovery, which implies the earnings outlook will improve. look to cyclicals for upside support for stocks. nerves do remain that it may

continue. the shanghai composite close to joining the csi 300 in correction territory. the february peak on the chart. modest risk on moves in australia. that has eased somewhat. tourism and travel names are jumping. airfare subsidies. check out qantas shares. rising as much as 3.5%. switching up the page, to pain in focus. the yen, little changed this morning. with treasuries, auctions in focus. haidi: bond traders will be digesting an auction of ¥1.2 billion in those 20 year jgb's. it comes amid more clues from

the bank of japan. sources are saying officials are looking for ways to let yields fluctuate more freely but still sticking to the cert -- the current range. ppp i data is due out will be bringing those to you and seeing if they in change the inflation outlook in any meaningful way. shery: staying with the boj, let's cross to paul jackson. what does it mean to enable yields fluctuate freely but then sticking with their current movement around the 20 basis points? how would that work? >> what we are seeing is the boj wants the yields to move around a bit more. it does not want them to move up. it has this sleeve around its

zero target, allowing yields to move up to 0.2% or down to -0.2%. there has been a lot of speculation out there that in this review of policy next week, the boj is looking to widen this band around zero like it did in july 2018. we have been getting some conflicting confusing signaling from the bank of japan. on friday, the governor said he did not think it was necessary or appropriate to widen this band. his deputy on monday seemed to call back scope for widening the range while saying he thought yields could go up and down a bit more as long as they did not affect the boj's stimulus. i think the take away is the boj is looking at various options

and there are other options it could look into. we could not rule out a widening of the yield range. it looks like there is quite a lot of resistance to doing. -- to doing that. haidi: do any of these tweak the options on the table to a better functioning of the market, which i assume the boj ultimately wants? >> i think they are looking for a better functioning in various markets. that is what they are looking for in this review. this review is important for central bankers all over the world. at the moment, everyone is fretting about these rising yields and how to control them. the bank of japan has a system to control them. there are there said topping this is an and other banks looking into it. if the boj is having to tweak

for the longer term, everyone is interested to know, what are the weak spots? we are not going to have a major policy change next week. the boj is trying to get the system to work better for a wider range of stakeholders including bond traders, including people buying etf stocks, including banks. this is when these tweaks are hopefully going to -- what these tweaks are hopefully going to provide next week. haidi: the inflation picture does not seem to be particularly exuberant. paul jackson. we are getting the ppi numbers for japan. producer price, coming in at 7/10 of 1%. that is in line with expectations. slightly better than the -6.1% in the previous month. ppi, and a 4/10 of 1%.

that is slower than expectations of a half percent gain. we do see a little bit of a list coming through from higher commodities prices. given that rise of 7% in the bloomberg commodity index. that is not change lighting to much -- not translating to much. taking a look at base effects and rising commodity prices, that would be playing into that picture as well. lots more to come on daybreak asia. this is bloomberg. ♪

shery: we have breaking news out of south korea. the bellwether for global trade. we are getting the export numbers for the first 10 days of this month. chip exports rising by as much as 25.2% year on year. when it comes to geography, to china, more than 33% gains. 22% gains to the united states. we have seen the export growth numbers in south korea decelerating to single-digit growth in the month of february. a salad 9.5% year on year growth as we continue to see the shipments expanding not just

from chips but also to automobiles and petrochemicals. we also recently just had news korea had approved the astrazeneca vaccine for all ages 65 and over including the elderly. that would be the first vaccine in south korea. haidi: it does look like the coupon ipo is looking bullish. they have priced the ipo above the range expected at 35 u.s. dollars a share. there would be above the range of 120 million shares. that was according to a tuesday filing we had with the u.s. securities and exchange commission. that pricing is coming in above the range at $35 a share according to reporting from dow jones. that is going to be a big jump when it comes to the ipo for the

e-commerce giant planning it's ipo. we are hearing the pricing a little higher than expectations. let's get you a check of the headlines. a conservative social media site has been denied entry into the app store. it is said to have removed seven staff. apple had asked the app to change its moderation practices and now says community guidelines remain incompatible with app still -- with app store rules. the $30 billion deal signals the end of ge capital. the remanence will be folded into a parent company. aviation analyst question whether bigger is better. we do have the market open coming up next in tokyo and seoul. lots more to come. this is bloomberg.

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-- the u.s. and china had back to the table for confirmation of a high level meeting in alaska. there are also plans for talks with alaska japan and south korea. we are also watching the bond market closely. there is a threat in hong kong. >> watching bond markets closely indeed. traders are looking out for a 20 day auction throughout this thursday. you have the 10 year yield rising 13 basis points ahead of that and when it comes to stocks to watch, keep an eye on asian crypto names. we are watching in the airlines as panera told the government they would be able to move the weekly inbound pastor numbers. we have some data today and we have prices coming in .1% year on year in line with estimates.

switching on the board with south korea, we got slashed trade numbers 25% in the first 10 days. we also had to be ok set to submit a monetary as well is holding a meeting on related to rates. the korean won is on the front foot. the share market is gaining some ground, adding .6%. switching up the board to see what is going on, we have seen the asx 200 lower with tech weighing heavily on the benchmark. four chairs earlier rising 4.5% on the back of this report. we see s&p gaining along with nasdaq futures even as we sawtek lag overnight. -- saw tech lag overnight.

there is an announcement the u.s. and china will hold a diplomatic announcement next week and we have a credit trade today just as well implying their covering moment tenures for china's economy. cash treasury pretty steady this morning. taking the 10 year option in stride and we have a 30 year treasury sale do later. -- due later. >> i will pick up where sophie left off which is the reception to the tenure auction. the market shrugged off any weakness coming from the back of that going into the reopening. it is a real concern, the inability of the markets to observe -- to absorb all of that supply. >> i think it is, what is a bit of a moving target at the moment. the markets are really trying to fool around for the pressure when it comes to bond yields and how it affects asset prices and

bond market volatility in and of itself is enough to rattle nerves. last 24 hours of trade, it is a backwards-looking number and everyone is thinking about trying to price treat inflation. we have seen a demand for the tenure and it was still relatively tepid. the markets are more or less feeling around trying to get a bit of an understanding.

the markets are looking around for the pressure points at that is generating the volatility we have seen. >> a lack of confidence or direction seems to be plaguing australian stocks as well. i want to take a look at which direction do australian stocks ago? -- go? it is flirting with a key bullish trend coming from last march. what moves, given this reluctance either way? given the data on the recovery side is really white encouraging. -- quite encouraging. >> if you look at the market, we are seeing upside moments and phases overall and a lot of that has to do with the fact we are seeing material stocks take a breather. those prices we are seeing

emerging have probably hit the market a little bit. overall, it remains a reasonably positive trend. although i don't think it will be and outperforming by any means especially compared to a comparable agent benchmark indices. if you look at the nikkei and other indices sensitive to china's periphery and sectors more sensitive to the business cycle. the fundamentals remain reasonably strong. volatility in bond markets can remain stable and confidence can return in terms of pricing assets, but overall the a sx remains well-placed to perform given the yield curves and robust outlook for commodity prices. it is a markets that is consolidating and has the capacity to push higher given

the appropriate conditions. for the timekeeping, that level is a really formidable one to the index. >> you pointed to volatility in the bond markets. this chart showing how the boj kept yields in a range around 20 basis point fluctuations around the yield target and we are hearing from sources that officials are looking to enable the yield to fluctuate more freely. what does this mean for the broader markets as we continue to get pressure for higher yields? >> if you wanted to find an optimists view on what is happening in the bond market, it is genuine price discovery. there are major concerns a lift in bond yields could do all sorts of things to lift assets.

will we have got is a market trying to feel around to get a gauge on how robust this recovery will be. to naturally discount that into financial assets. there is no real full confidence in what the outlook is going to be and it is still all over very positive. capacity or vagueness exists in the market and markets are very conditions to some really solid former guidance who push back on this. so far, central bankers across the globe saying the rising units are a positive thing. growth is strong and there is stimulus coming room. we are not going to ease and tight monetary policy by any means but these are positive

signals. the same thing is happening at the moment. the jgb is not giving any indication they will manage the yield control program. the market is trying to get a feel on where things should be priced and a lack of guidance from central banks. >> thank you. for now, let's get to vonnie quinn with the hurt -- the first word headlines. >> iran's offer of a gradual return to the nuclear cord appears to suffer previous demands the u.s. must lift all sanctions. president rouhani says tehran will recommit as long as washington does likewise. however, the author true swift racism. the socialwashington does likew.

criticism. media -- faces>> platforms areg together for paying for news platforms. this came after voting to force social media to compensate news publishers for materials. russia says its decision to slow access to twitter is justified as it has failed to comply with the demands to regulate content. moscow will put the brakes on until it removes the undesirable content. moscow also warned of an all-out ban. twitter is being used in the fight for jailed rampant critic alexei navalny. a volcano in far eastern russia is providing spectacular pictures. it a burst into life on a peninsula north of korea and

japan. seismologists had been expecting the direction. it's an active volcano which erected last year. that erupted last year -- erupted last year. global news, 24 hours a day on air, on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> still ahead, beijing is considering tighter rules for its nasdaq file and that could raise the bar for major listings. and we will be speaking with strategic vision investment which focuses on china's megatrends as the fund returned more than 200% last year this is bloomberg.

>> the u.s. has confirmed that secretary of state antony blinken and the security advisor

will meet their chinese counterparts in alaska next week. let's bring in tom mackenzie for more on this. the reports were confirmed today but what caught my eye was that tweet by the state department spokesperson saying they will discuss a range of issues looting those that they disagree on. it seems posturing is remaining pretty tough. >> both sides want to hold on to the leverage that they have. we have seen neither side give up or at least hand over any olive branches since the biden administration took over. both sides digging in on the main and most contentious issues. that dynamic could change and that's why this meeting is so, the first high-level meeting since biden took over we will have blinken and jake sullivan in the room with the top, it is for foreign affairs at the top for mr. blinken will have been

coming straight from a visit to both soul and tokyo where he will be trying to shore up those alliances to push back against china this time or last summer some mike pompeo meet in hawaii. it is potentially a cautionary tale, and blinken himself said yesterday that this is likely to be it for now. in the last two weeks, china has laid out its redline on areas like taiwan and shut down -- xinjiang, and areas like combating the coronavirus. >> looking at the air quality index for beijing is very much

unhealthy in terms what you watching? >> you set me up for a pollution a rant on that one. we put in place measures to curb the industrial production. it has not helped so far. the following is still thick. we're looking ahead to the closing ceremony and then we will see if they can unpack some of the policies that have been outlined in the last. -- the last week. we have pledges around growth targets, cutting carbon emissions what will they do in terms of implementation? -- carbon emissions. what will they do in terms of implementation? they want to change the election laws in hong kong. will the premier give any more details on that contentious issue?

>> markets coanchor tom mackenzie there in aging. we do have lots of analysis to come. a little bit later, we will be speaking to a senior china economist in the east asia institute director. -- and the east asia institute director. you can go online to get commentary and analysis from expert editors. this is bloomberg. ♪

>> robinhood's ceo glad to now says investing should be as normal as online shopping. he is rejecting the criticism that the trading app glorifies gambling. he spoke with emily chang about making investment available to

everyone and how washington -- and how investing is dealing with scrutiny from washington. >> there is the belief that there are decades when nothing happens and then weeks where decades have. which i think is representative of what we have been through at robinhood. and not just robinhood the entire industry has seen investing go from something that is niche, that you hear about on tv. they relatively small number of people were actually interested in it now you are seeing investing part of the cultural zeitgeist. people are talking about it on social media, investors are talking about it. anything entering the cultural

zeitgeist, there is bound some confusion -- bound to be some confusion. i had to keep it in perspective myself that this is what i signed up for. it's probably not going to be the most comfortable assets. >> what do you say to critics who say you are glorifying gambling? >> i reject the idea that investing in the u.s. capital markets is gambling. i think we have a problem which is that since the end of world war ii, more and more stocks, the corporate stocks in america,

have been owned by advisors or other institutions or intermediaries. at the end of world war ii, the majority of stocks were held by household. i think they agreed it a problem. -- it was a problem. it has the potential to curb that. any attempt to access the markets directly is just poorly directed. it made it even easier in

removing the remaining barriers. >> president biden's pick to run the sec says he is addressing the game a fixation of invest as one of his top priorities. what does that mean for robinhood? >> first of all we are excited to work incoming administration to clarify some of these things and we welcome people looking into it. what we find is a game a fixation -- gameification is poorly definied. -- defined. people want to invest in stocks. whether they do it or with other brokers zero commission and low account minimums, that is now possible.

>> we are seeing a prolonged selloff in the markets. it was a bloodbath for a lot of people including many of your customers who are only used things going up. if there is a correction, how worried are you about your customers hurting? and does that hurt robinhood? >> we definitely wants to make sure we align ourselves with long-term customer outcomes. we have been saying the entire time that investing is a habit, it is a skill. we encourage people to get started early and build up these habits over a long time. i am personally a huge believer in long-term investing. what the product allows customers to do is to set up recurring investment, where you can buy a stock and can deposit

and bite recurring investment over time. that way you can build up in a diversified a. -- up a diversified portfolio. a lot of this makes into the public discourse because it is more interesting and a user to talk about than someone building up a diverse portfolio over time that is how most of our customers use our products. most of our customers aren't buying and selling on a daily basis, they are building up portfolios. that is, i think, how the bulk of people will continue to invest and how most people will think about investing in the future. >> robinhood's ceo speaking with emily chang. we are speak -- we are looking

at softbank because their e-commerce company coupon is now set to be pricing a u.s. ipo. remember this is a much anticipated ipo. they had marketed 120 million shares. now, they have priced it at the top of the range at $35 a share. softbank of course owns about 85% of the startup and could report an unrealized gain of as much as $16 billion. here is a check of the latest headlines. roadblocks -- roblox has become something of an icon and is one of the few shares to make a public listing. it gives them a market value of $40 billion making it one of the

most valuable companies to go public. the conservative social media app parler has been denied reentry to the app store after being kicked off following the storming of the u.s. capitol. they are said to have cut the remaining three ios developers and have removed seven staff. apple has asked the app to change the moderation practices but now says their community guidelines remain incompatible without -- with store rules. a managing director has accused their firm of blatant misbehavior. the allegations from kathy lu after she spent more than six years and includes misleading investors and failing to disclose conflicts of interest. bloomberg has been unable to verify these claims and see lsa

says it has been -- and clsa says it has been putting priority on client interests. coming up, we discussed some megatrends china -- in china. that is coming up. this is bloomberg.

>> this is daybreak: asia. china's most important political party has wound up this year's meeting having reviewed expectations for the economy and discussed goals for the next year. it's all leaders target growth of about 6% and a plant a shakeup the electoral system in hong kong. the conference has no legislative powers but does offer proposals to china's ceremonial parliament. senior officials are expected to meet china's count to discuss

currently strained relations. antony blinken and jake sullivan will meet with their chinese counterparts in alaska it will be the highest level about exchange. -- o-matic exchange -- diplomatic exchange. >> the american rescue plan is headed to the white house provided. it comes to months -- for his signature. it comes two months after presenting the plan. biden is still facing resistance to his program. australia is to prop up its ailing forest industry subsidizing thousands of airfares. 900 million u.s. dollars will be spent discounting tickets to help carriers, hotels, and other venues.

prime minister scott morrison says the program will help jobs and invest as australia fights covid-19. global news, 24 hours a day on air, on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> let's take a look at how we are seeing asian markets fair. -- fare. >> we are seeing assets get a bit of a breather and data showing credit expansion continuing in china but cases are unlikely to unnerve. exports in the first 10 days of this month jumped 25%. halting a five-day drop, but not moving back above that level. the korean won is on the front foot against the greenback. japanese stocks, a little

change. just a slight upside while jgb yields climb ahead of a 20-year-old best 20 year auctioneer benchmark. switching out the board the asx 200 has been under pressure with minors leading that drop along with -- with miners leading that drop. check out the aussie three year yield easing its earlier gain it saw. this as the rba held off action after the central bank tweaked r epo borrowing rates. cash treasuries pretty steady. jp morgan expecting a 30 year auction, noting that it has become more prevalent. the offshore you on -- yuan

consolidating around its moving average. this is as we consolidate the data which bloomberg's economics say strikes a good balance. >> let's get to china. our next guest has been betting on chinese stocks to capture some of the country's major trends energy and industry consolidation. that is paying off as strategic vision investment tripled performance in 2020. this comes at a time china has announced it will act strongly on climate change. great to have you with us. we have seen the initiatives out there, the goals and targets, how does that impact your portfolio given that you are making such a big bets on the biggest trends across china? >> thank you very much. it is my pleasure to be here.

this is very important for employment policy discussion for our strategic vision. we see several areas that could generate consistent value from these megatrends. first of all china's long-term reduction targets and then we believe it will bring in norma's opportunity for solar and also energy storage companies aired -- companies. currently, solar only accounts for a percent of electricity generation. then you see significant investment in high-quality solar at storage companies. we see industry consolidation as a trend in china is following policy of currents -- upgrades,

for example we expect china to improve its quality assurance for materials. this will be very beneficial for a leading company. lastly, it is about five and internet. they have a great opportunity for a telecom company. >> when we saw the growth target out of beijing last week, some investors were a bit disappointed because it seems conservative. what do you make of that? >> i am actually thinking it is

a higher-quality growth target with a more and more sustainable nature. it is already a big number to start with an aside for the government to make a more sustainable growth target, especially more sustainable growth focused on the environment. i think it is a good sign. >> is the last day of the national people's conference and some of these trends have been discussed already. what are your takeaways in terms of what you have heard that is truly investable? >> as i mentioned, there are several areas.

we are pretty excited about the chinese telecom company and the opportunity. they are building more cloud computability and more so in data centers. [indiscernible] >> what about health care? there is a lot of overhaul in place. are there any opportunities you see in that sector? >> china global has that trend

for 20 or 30 years and we see people spending more on health care. it is a leading chinese company with a competitive advantage and aren't the. -- and r&d. the way pharmaceuticals market in china is very long-term. >> given your optimism about the chinese market, does it bother you that once we saw the markets moving freely and we saw a route , the government went ahead and censored some of those searches, including stock markets in chinese? >> this is temporary.

for the strategic investment most of them look at opportunity for the long-term and target for our investment generate 10 times value over 3-10 years. >> so what about long-term, if we see more regulation? already we are seeing words about ipo restrictions on the starboard, not to mention regulation. >> this trend actually happens globally. you will probably make the industry in the long-term much more sustainable. i think that to some extent, a lot of these big tech companies

i think will welcome the regulation, just like their international peers. >> how much do you watch the policy changes that take place in the sectors you invest in? is that a major risk for your portfolio given the rate of policy change we see in china? >> one thing in focus is the long-term sustainability of these trends and another trend i would mention is the long-term trend and beneficiary for the chinese economy and people to make it more suitable for chinese. -- for the chinese government.

our philosophy is also our goal. >> ken xu joining us. you can catch up with some of the past interviews you might have missed. you can also dive into any of the securities work function and become part of the conversation by sending us messages aired coming up next investors are waiting for changes to shanghai start work. -- star board. this is bloomberg.

>> china is reportedly considering tighter rules for first timeshares on shanghai's nasdaq style star board. there are looking at tech credentials affecting companies such as jack ma's text group. joining us is candace. what is behind this potential tightening of the rules? >> good morning. good question. i think you have seen an explosion of tech listings around the world is the pandemic supercharges digital trends. about 145 companies ipo would in 2020 and they are forecast to

see another 150 this year. but with the wheat, we have also seen chaff and that has regulators worried. importantly, they are also weighing rules that will place a greater emphasis on green lighting those companies working on hard-core technology and innovation. >> and this comes at a time when we see broader crackdown on technology. especially fintech. >> that is right. you will see an element of that fintech crackdown if these rules are eventually passed. this is a under a great deal of scrutiny. you see a flurry of rules to rein in the big fintech companies and regulators have been stressing that these online platform need to have the same risk measures imposed. it has not changed the very basic nature of finance so sources tell us while the latest

measures are not targeting a specific sector, it will make it harder to list. >> that was a big debacle. does that mean it will be harder for jack ma and his company? >> onstar board, it looks like it will be harder to make the case. but to be perfectly honest, you have seen a lot of scrutiny in recent months and there is a restructuring underway. we understand there is a slim chance they will be able to ipo this year in any case. they first need to satisfy regulators on a wide variety of issues and that will be where >> candace there with the latest on those changes coming in the chinese market. coming up, we look ahead to the latest results from online

retailer and alibaba arrival jd.com.

>> online gaming platform roblox hit $45 billion -- million dollars on its opening day.

the ceo told us why the company went public via direct listing rather than ipo. >> what we are so excited about today is that everyone is coming together. our long-term employees, the investors who have been with us for a long time. our new investors who are excited to bring into this community, and possibly small investors who are familiar roblox. -- with roblox. at first trade, we will be at the same price for everyone. >> speaking of smaller investors, are you at all concerned about becoming a meme stock target? there are those saying analysts can take you want just like gamestop. >> one of our values is to take the long view and with our company, we are looking to the

future. we are looking to years out and focus on building form and technology and building an amazingly civil society. we are really not watching what is going on with gamestop. >> my kid and i spent some time on roblox preparing for this interview. they would stay on there for hours if i let them. what are your plans for post pandemic growth? how do you continue to grow when we are not on lockdown? >> absolutely. we have been growing for 15 years and everybody at roblox wants covid to end as soon as possible. but looking to the future, what has powered our growth is amazing content and people coming together on the platform.

today, people come onto play, but in the future it will be to work together were to learn together -- or to learn together. at the end of the day we are going to come into a virtual stock exchange and get to celebrate this. there are amazing growth opportunities available in bringing everyone together from around the world, connecting people of all ages, and a new vision for what this type of technology will support. >> the first game of kid found was a shooter. very popular in my school community. there were some not nice things said from one kid to another. parents want to know about content moderation and settings, and if you will provide us the tools to geeky for our children. --how agtekeep for our children.

>> that is what forms the foundation of everything we do. there are thousands of moderators who are watching the content, we screen all of the content on the platform. we have computer filtering as well. it is really the basis for building a civil society on the form which we believe can bring people together. >> i want to ask you about your vision of the meta-verse, this idea we will all be living and working in a virtual world. elon musk thinks we are already living in a computer simulation. how long does it take to get to this? >> we have an optimistic vision around the meta-verse. just as books and video has brought us together, we are optimistic that when kids are studying ancient rome, they will

travel together to experience ancient rome. we are optimistic that as this comes into reality, people will understand physical versus digital and balance that just as they do today. >> roblox's ceo speaking to emily chang. let's turn to jd.com. the retailer is expected to post earnings as consumers flocked to online shopping during the pandemic. we also have the seasonal, promotional campaign and that could have eaten into margins a little bit. what are we expecting? >> basically, we are looking at the single quarter. you can see fourth-quarter results that came out a couple of months ago. the expectations are for a

strong quarter. what we are most concerned about is the outlook going forward. if this unprecedented e-commerce whom will persist into 2021. >> in terms of sector breakdown for parts of the business, what are you wait -- watching out for? >> we have seen a jds spin out on a bunch of businesses and they are trying to do that for financial services as well. one interesting part of empire's logistics and that has sort of been there so point -- their selling point, especially during the pandemic. it allows them to make delivery and logistics more efficient across the supply chain.

that has really helped the share price but we are also keen on hearing and talk about that plan for fintech, especially in light of what is happening in china right now with the crackdown. >> and with the expectations that ipo will be dropped. we expected you -- are we expecting to hear an alternative? >> we have heard jd is structuring fintech operations to conform with chinese regulations. i personally would not expect management to go through too much detail given what they are doing at the uncertainty in the regulatory environment. but you are right that is one thing that is on investors minds.

>> let's take a look at some of the stocks we are watching as we head into the opening in mainland china. >> chinese stocks found some relief but not the shanghai composite, which was little changed. it is close to entering correction territory. the shanghai composite might find a floor at some key technical level amid rising volatility. but some improving data may provide a lift to credit growth and the earnings outlook may provide a boost. on that, flipping the board when it comes to earning. bloomberg intelligence saying chinese developers are set to report growth for 2020 given the resilience in construction. >> we will watch that as the

markets open. we are headed to the start of trade. bloomberg merges: -- bloomberg markets: china open is next.

anchor: it is not :00 a.m. in beijing -- it is not :00 a.m. in beijing. i am tom mackenzie. -- 9:00 a.m. in beijing. >> china's most important political event wrapping up with the spotlight on premier li's closing the conference,