♪ haidi: welcome to "daybreak australia." we are counting down to asia's major market opens. shery: good evening from bloomberg world headquarters in new york. i'm shery ahn. haidi: antony blinken in his first trip to asia, accusing beijing of coercion and aggression. talks between the two countries this week could be difficult.

france and italy could make a u-turn on the astrazeneca vaccine. they had did they will lift suspensions if medical regulators say the shot is safe. u.s. stocks snap a five-day winning streak, energy and industrials leading declines, the 10-year yields little changed as the fed gets set to meet. shery: look at u.s. futures, under little pressure after falling from the record high. there was a little correction in the markets today. we saw the s&p 500 falling, energy and industrials leading the decline, big tech gaining ground, the nasdaq 100 finishing .5% higher, the 10-year yields rising above 160, hovering near one-year highs. it fluctuated as we have the fed reserve beginning their meeting. we have retail sales tumbling, affected by bad weather. oil seeing its biggest fall in a week. we are seeing a little upside in the asian session. let's see how we are setting up

for asian markets. sophie: futures are mixed this wednesday, wellington stocks rising a seven day, slightly higher this morning as they digest the latest data from new zealand, showing the current crown deficit at a 19 year low. you have the offshore yuan steady at 650 with volatility on the currency staying subdued. australian bonds, a reversal, the 10-year yield above 117 after firming up in the bond space tuesday after the we saw the tba bank drop their calls this year. ahead of the fed flipping the board, we are seeing the fund manager survey showing inflation and paper tantrums as the biggest threat to markets. we have managers calling for a suppression of 10% toward if the

u.s. does reach the 2% level, which is very closely watched. all this has rotation into cyclicals and commodities at a high of 28%. long tech still remains the most crowded trade, followed by bitcoin and esg. commodities the most preferred region when it comes to the manager survey from b of a. haidi: let's look at first word headlines this hour. france and italy say they will resume using the astrazeneca covid vaccine if the european addison's agency advises that it is safe to do so. the drug regulator is revealing data ahead of a meeting thursday before issuing recommendations. the ema has said the benefits of the shot i weigh the risks. -- outweigh the risks. eu countries are warned of the slow pace of vaccinations could prolong restrictions on activity. hsbc closes its main office in

hong kong after three people in the building test positive for covid. according to an internal memo, the government -- for more than two hours before march 2 and march 15 undergo mandatory tests. it means customers will have no access to the biggest branch of the city. hong kong says it will extend virus-related social distancing measures until march 31, another two weeks. u.s. secretary of state antony blinken accused china of using coercion in places including hong kong and taiwan, as he rallied asian allies to a common approach around beijing during his visit to japan. the officials traveled to south korea wednesday. one of president biden's senior eight says relations with beijing want to prove until the country stops economic coercion against australia. reports say washington won't

abandon its closest ally. china has imposed tariffs on a range of australian exports after canberra backed an independent investigation into the origin of the covid-19 virus in china. 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: let's get back to the markets now, u.s. stocks falling for the first time in six trading sessions. a little upside in u.s. futures right now. let's discuss. kristina hooper's chief market strategist at invesco. what will investors be watching for at the federal reserve meeting tomorrow? >> investors are going to be looking for a few things. first, they are going to pay attention to the dot plots around several key areas. first, economic growth.

vaccine rollout has been going very well in the u.s.. it has been accelerating. so one would expect, especially with package of the stimulus package, that economic growth protections improve. so i think we are going to see a shift there. second, what our expectations around the dot plot around inflation. i would expect a slight increase, but not significant. finally, what about the fed funds rate? in december, we saw, i believe, only one participant expect a rate hiking 2022. that is likely to change. we are likely to see more participants expect a rate hike, at least one, in 2022. that could really rattle markets. but what i think is going to be even more important is the press conference, and the words coming from jay powell. again, reassuring that the fed does not have a trigger finger when it comes to raising rates,

that it will be patiently accommodative. shery: and yet investors seem to be getting ahead of themselves a little when it comes to inflation. listen to this. >> inflation, currently above 2% now, is not point to be above 2% in the next two months. i see a 3% or 4% number ahead of us. shery: what do you make of inflation expectations of how that could derail the market? kristina: if we look at the 10-year break-even, it finished at 2.13 percent today, the highest level since 2014, but still muted, modest in my opinion. so yes, could we see inflation increase in shorter-term to 3% or so? yes. and i think the fed's blending for that possibility. it has already talked about how it expects to see -- the fed is

planning for that possibility. it has already talked about how it expects to see an increase, but it expects it to be transitory inflation, and not act on it. haidi: some say no matter what the fed says, jay powell can't straddle the markets and say what he needs to? kristina: you hit the nail on the head. that is a very real risk. markets are going to look for the fed to provide reassurance around the 10-year yield. and in particular, what the fed might do to lower borrowing costs if yields go up significantly. i don't think we are going to get much color from the fed on this. but perhaps we will hear something about the potential for more, for something in the way of operation twist. but it remains to be seen. i think only that could calm

markets at this point because there is such an obsession, especially with hitting the 2% yield and creating a selloff in stocks. haidi: the revival of operation twist requires a lot of watching at the moment. i am wondering if you are watching the geopolitical side of things, things have been quiet since we had the trade war is a driving force in the market. concern was coming from washington in the direction of beijing, his political risk something your investors keep in their back pockets? kristina: i don't think geopolitical risk will be significant. i think the focus is on things like inflation and the rise in the 10-year yield. there certainly will be days when, if we hear inflammatory language, there could be volatility and short-term selloffs. but i don't think that we will see any kind of significant impact on markets because of the words. shery: during the volatility,

then, would you take advantage and i into that? kristina: absolutely. there are a lot of attractive buying opportunities out there. certainly, we saw a selloff in chinese stocks and me, they are more attractive today than they were just a few months ago. so any kind of selloff created by geopolitical concerns, in my estimation, especially if investors have a long enough time horizon, would be an attractive buying opportunity. haidi: kristina hooper, chief market strategist at invesco, thank you. one official says australian relations with beijing will be a key topic at upcoming talks in

australia. details coming up. also coming up, tech affects founder tony sycamore joins us -- techfx founder tony sycamore joins us with his outlook. this is bloomberg. ♪

♪ shery: another daily record for brazil, it has just seen 2841 covid-19 deaths in the past 24 hours. we have seen a very chaotic response to the pandemic in brazil. they have a very fragmented coliseum when it comes to their vaccination campaign as well. the bloomberg vaccine tracker, not expecting it will take brazil one point seven years to inoculate 75% of its population. do watch out for what is happening in brazil in the next 24 hours, we may get the first rate hike among g20 nations this

year, as they are also struggling with inflation. they have spent 8.3% of their gdp last year on stimulus measures, but as you can see, we are seeing significant weakness on the brazilian rial, so do watch out for latest developments around brazil. haidi: senior u.s. officials, including secretary of state anthony blinken, reaffirmed the washington commitment to its alliance with japan, accusing china of coercion and aggression in the region. let's go to achieve asia cords fondant stephen engle and hung -- teeth asia correspond -- our chief asia correspondent stephen engle in hong kong. what is the tone? stephen: the tone is one thing in the significance is something else, because this is the first on the biden administration has given reassurances to key allies

in the world, japan and south korea mainly. secretary of state blinken is in japan, heading to south korea, both of these meetings ahead of the big meeting with chinese counterparts. and in alaska later this week, maybe, schedules can fluctuate. you can see anthony blinken in tokyo with the japanese foreign minister, showing a united front towards china. in fact, blinken reaffirmed american support for japan and as you said, haidi, he used pretty harsh terms, accusing china of using coercion and aggression including in hong kong here, and taiwan. pre-pledged to defend japan, and at least the potential to use

nuclear weapons in a joint tape meant -- joint statement with his japanese counterpart. both sides in the joint statement singled out china for political, economic, military and technological challenges. that is the whole gamut. so they are showing a unified front. it will be interesting to see what kind of statement comes out of south korea, when leaders there meet. but again, north korea will be a key issue. this is not just a trip about china, north korea is rattling sabers again, kim jong-un's sister putting out a statement just ahead of blinken's visit to the peninsula, kim's sister warning that the united states had better refrain from causing a stink if it wants to sleep in peace in the next four years. so you can tell from the rhetoric and the level of criticism that this is a critical trip on all fronts. shery: in the meantime, we are

expecting taiwan to be a key flashpoint in the alaska talks. stephen: absolutely it will become of course. taiwan and the u.s. had very strong relations under donald trump, and there is uncertainty about how that relationship would go forward under joe biden. i spoke exclusively yesterday with the taiwanese representative to washington, d.c., a close confidant of the president. and she said this point in time is critical for u.s.-taiwan ties. >> our doors have been opened to talks, as well as the other side respects the will of the people of taiwan. and we also want to engage with talks that are not conditioned on political demands such as the

one country, two systems formula that has failed in hong kong and been rejected by the people of taiwan. any elected leader of taiwan, the president of taiwan, cannot engage in discussions and talks with china under the demand that we reject the popular will of the people of taiwan. stephen: i did see a twitter post of yours, eating a pineapple in a taiwan field. is this going to expand pineapple diplomacy where china is banning other agricultural products from taiwan? >> we have been concerned about the utilization of economic leverage to make political gains. this type of coercion has been applied to vulnerable sectors in taiwan for many years. now, we see it also being applied to australia and other democracies.

and our goal is to further diversify our economy to the extent we are not as vulnerable to the whims of the chinese government in terms of agricultural and other procurements from taiwan. stephen: turning to business, you are in washington d c lobbying for a free-trade agreement with the united states. so any sent to the united states from taiwan are duty-free already. what would be significant of an fta with the united states? >> we do believe a treat agreement -- a trade agreement with the united states would be a signal of confidence to businesses in both our countries, to further deepen that economic order ship. we also hope a trade agreement will provide -- deepen that economic relationship. we also hope a trade agreement will provide a stronger supply chain and play a leading role for economies in the region is

taiwan also pursues being part, the opportunity to be part of regional trade networks such as the cptpt. we believe u.s. leadership will be important, although the united states is not part of the cptpt, but engaging with taiwan entree talks that would help to establish some basis -- engaging with taiwan on trade talks that would help establish some basis for a trade agreement. stephen: the u.s. trade representative grew up in taiwan and has strong ties. is she an ally on your trade ambitions? >> we look at the issue from a perspective of taiwan interests and american interests, and areas where our interests to align. we believe taiwan does meet a number of significant criteria that have been emphasized by the

u.s. tr designate, in labor standards, environmental standards and being a reliable trading partner. we hope to pursue our trade relations based on these important elements that are in line with the interests of both our countries. stephen: taiwan, as it always has been, clearly a flashpoint between china and the united states, the foreign minister already saying this is a redline for china, as well as winning the innate state you are playing with fire in regards to any form of taiwan independence talks. haidi: our chief north asia correspondent stephen engle. washington is also warning china ties won't improve until china ends economic coercion against australia. the remarks were made by kirk campbell, head of the talks in alaska. paul allen joins us with

details. we know the story of deteriorating canberra-beijing relations. what is campbell saying? paul: kurt campbell is often described as president biden's asia czar. he made a commitment to australian prime minister paul morrison and said the u.s. was not put there to improve relationships with china. a close allies being sued to economic coercion, china has been exercising a fair bit of economic usher on australia. there is an informal ban on coal imports, an official ban on other imports, tariffs on us trillion wine raised by more than 200%, and another murder -- and a number of other industries targeted as well. campbell says he's letting china no we are well aware of what is going on in the united states says it is not going to leave australia alone on the field. haidi: any reaction from china

to the remarks? paul: the chinese foreign ministry spokesman was asked about this at a regular news briefing. he didn't give a direct answer. he did reiterate that the cause of the tension between china and australia is due to canberra. he said the action against australian exports is retaliation from their list of grievances, including calling for an inquiry into the origins of coronavirus. but last week, china was threatening even more damage after australia granted a visa to a hong kong pro-democracy politician. shery: paul allen in sydney. we will have more analysis on blinken's first trip abroad. a former ambassador to the u.s. joins us in the next hour. meantime, we are seeing new headlines with reports that a prime minister is expected to brief the media today on listing

the virus emergency in tokyo. remember, that was extended. there are conflicting reports from japan on whether that will be listed march 24. we are expecting more details later. this is bloomberg. ♪

♪ haidi: taking a look ahead at the day, a speech at the australian finance industry association after the rbn emphasized the need for higher wages before considering any prospect of a right hike. catch that on lif -- on leave ive go on your bloomberg terminal. in new zealand, auckland airport

on watch report today 73% drop in passenger movement during the past eight months, not surprising given the state of international travel at the moment. shery: let's turn to a check of the latest business flash headlines. uber will reclassify all 70,000 of its u.k. drivers as workers after a landmark ruling from the supreme court last month that entitles them to the $12 minimum wage, which uber describes as an earnings floor, not a ceiling. drivers will also get vacation pay and other benefits. uber did not say how much the pay reclassification cost, but did not include any changes in its earnings for the order. arising first net income rising to 281 billion dollars, the world's biggest daily exporter has seen chinese demand for products increase, and

forecasting its highest milk prices since 2014. fonterra plans to fully have a stake in china's child and baby food company by the end of the year. more on those results. this is bloomberg. ♪

>> the government clearly and unequivocally supports the rollout. >> the german government is suspending coronavirus vaccinations of the astrazeneca vaccination. in accordance with our european policy to this -- it's been vaccinations of astrazeneca as a precaution. >> we are still firmly convinced that the benefits of the astrazeneca vaccine in preventing covid-19 outweighs the risk of the side effects.

>> the agency is currently carrying out an investigation as underlined by the european agency today. the number of such events overall index native people seems not to be higher than in the general population. shery: the leaders of france and italy say they will resume using astrazeneca's covid vaccine if the european medicines agency advises it is safe. the regulator is reviewing the data and will issue a formal recommendation. let's get the latest from our health reporter, michelle cortez. michelle, what changed? >> at this point, we are starting to see some analysis of the data that astrazeneca has in some of the information they have where millions of people

have been given the vaccine. when you start looking at the cumulative body of evidence, it does appear there is not a significant increased risk of blood clots, which is what is causing concern. it is that information, that understanding that is creating a little bit of comfort for countries like italy and france to say we are taking this very seriously, we looked at it and we halted when we were not sure, but now we are confident, and let's move on. haidi: we just got the latest numbers when it comes to coronavirus cases and deaths out of brazil. is there a real concern that there are entire countries that are so far behind when it comes to the vaccination rollout that it potentially hinders the concept of having of cohesive mobile recovery and a return to normal? michelle: if we do not get most

of the world vaccinated, we are going to be dealing with these outbreaks of coronavirus month after month, year after year. that is absolutely undeniable. what were seeing in brazil is a return, not only because their cases are so high and vaccination level so low comparatively, but we know there is a variant circulating there. not only is that variant itself concern, that variant could further mutate and become an even bigger problem. the only way that you can stop that future knock on risk of additional mutation happening is to stop the transmission of the virus itself. so we really have to get the vaccinations going over there. there is absolutely a concern that if we have this pool of infection throughout the world, that will continue to increase outbreaks until we get it under control. haidi: michelle cortez, our bloomberg health reporter. and speaking of concerning

outbreaks in this part of the world, we're hearing from the australian prime minister talking about the alarming outbreak in poppel, new guinea. --papua new guinea. >> will be suspending all flights to australia except for medevac and other critical flights. will reduce flights effective at midnight tonight. we are suspending all outbound travel by australians to papua new guinea except for central and critical workers including humanitarian and medevac related activity. if you are there, you will stay, if you are, you will stay. we cannot risk more people going into those areas and then coming back to australia. we will work over the course of the next fortnight to move as quickly as we can.

we will also be ramping up the medical support where dividing by gifting essential ppe to png. that includes one million surgical masks, 100,000 gallons and goggles, 100,000 pairs of gloves, 100,000 bottles of sanitizer, 20,000 face shields, and 200 non-invasive ventilators. our government will also be moving immediately to gift 8000 doses of our covid-19 vaccine stocks to support the vaccination of frontline health workers in p&g next week. were also making a formal request with astrazeneca and the european authorities to access one million doses of our

contracted supply of actors and inca, not for australia, but for png, developing country in desperate need of these vaccines. contracted them, we paid for them, and we want to see those vaccines come here so we can support our neediest -- nearest png neighbor,. we are deploying a critical plan to establish and prepare plans for covered health care needs in png and set the ground for further deployment of the critical care team in coming weeks. we'll also be seeking assistance from our quad partners to provide assistance, technical and otherwise, with the rollout of this program. we will continue as a matter of urgency to support the efforts of the department and increasing

visibility of the presence of the border force in managing that border. after good discussions with the premier last night, and i think her for her cooperation. we'll work out the details and in cooperation with the png government to support a vaccine rollout in the western province with a focus on supporting nexen nations and what is known the treaty of villages. those treaty villages act as a single community, and there is much movement back and forth in that part of the world. we want to extend the protection of the vaccinations that are going into those treaty villages and in addition to that, we are can -- keen to support the provision of supplies and other necessities into those villages which would prevent and remove

the need for them to travel to other parts of papua new guinea where the covid virus is more present than in those treaty villages. the vaccinations will be undertaken other queens in government in the same way they are currently doing that. the other vaccines and programs would be part of the vaccination plan that i have already referred to. in addition, in addition to the contributions we've already made with our commitment to developing countries, covax will deliver 588,000 vaccines for png by june. since the beginning of the pandemic we provided $60 million in assistance to p&g to respond to this crisis. they are our family, our

friends, our neighbors, or partners. they've always stood with us, and we will always stand with them. this is in australia's interest, it is in our region's interest, and it is incumbent on us as australians to secure the health of our own citizens, but equally our png family. haidi: prime minister scott morrison on australia's emergency response to the outbreak of coronavirus in neighboring papua new guinea that has been increasing pressure for the government to provide vaccines to health-care workers. the prime minister they're announcing that will be a donation of 8000 vaccine doses to png health workers and also suspending passenger flights and some charter flights for flying mining workers between png and australia has been suspended. of huge concern is the very low testing rate.

about 250 out of 500 people tested by the queensland government have turned up positive. you can catch the rest of that news conference on your terminal. the latest this week as well as some of the key event you might have missed out on earlier. shery: and we continue to see infections in the other parts of the world. hong kong has closed one of the cities was iconic buildings. hbc shut its main office in the building after three people tested positive for covid. according to an internal memo seen by bloomberg, the government is expected to tell people who visited the building for more than two hours between art second and march 15 to undergo mandatory testing. haidi: speaking of getting back to work, fresh signs and wall street that ceos are wanted back in the office. ever core is one of the top 10

providers worldwide. >> it is very much our goal to be back in the office together. hopefully even to have some of our trainees this summer be at least partly in the office. we are encouraging everybody to get vaccinated as soon as they are permitted to do so in their respective geographies. haidi: let's bring in su keenan with more. su: ever core and others were some of the major merger advisors on a worldwide basis. ever core stating they intend to have hundreds back in the office is by the summer and urging the vaccine be taken buys many as

are permitted to in various regions. the ceo stating ever core is really passionate believers in that merger business in particular, one that involves human interaction and apprenticeship and mentorship, and that really occurs best when people are together. he pointed out that would be flexibility on a case-by-case basis and underscored that requiring vaccines in an office environment is complicated because there are many people who have religious and other beliefs that would be reluctant to do so. that is an issue he said will likely get sorted out. shery: so what are banking giants like j.p. morgan and goldman sachs doing? su: jp morgan chase said summer interns will be getting at taste of office life. they made virtual they're paid summer programs last year but that is not the case this year.

j.p. morgan chase wants its young hiking trainees in the offices in their london and new york space. goldman sachs also recently said at a virtual conference last month that remote working was an aberration and they are now going to try to correct it as quickly as possible. on a final note, people close to apollo global management are going to test out a hybrid form of employees working a couple of days a week remotely at the end of the year and the rest of the week in the office. starting the program will depend on when mac -- vaccines are widely available. but it was found that work teams were highly productive and they want to keep that mojo going. so it does appear that a lot of banks are now bringing an end to the work from home era. back to you. shery: let's get to the first word news with vonnie quinn. >> north korea could be planning

to carry out its first weapon test since president biden came to office, citing u.s. intelligence officials. they said hinges on the outcome of state meetings in the region. russia remains a top threat to the united states, u.s. northern command chief told the senate that russian leaders continue to assert their dominance through the threat of military force. the u.s. rivalry in china has intensified in recent years but saying the russian military continues operations aimed at north america. the fourth trait stating -- trading session, news of the

sale reassured market bulls that it remains intact. it eases concerns about the effect of a new outbreak on chinese demand for crops. it surged to the highest level in at least 26 years. uber will reach out to buy -- to drivers after landmark ruling from the supreme court last month. it enables or entitles them to a $12 minimum wage which over describes as an earnings for and not a ceiling. they will get other benefits. uber would not specify how much the application will cost but does not expect any changes in its earnings forecast for the quarter. and the irs is talking about tax season. we'll bring you that in the next hour. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in

more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: coming up, will speak with the founder of tech fx trading. it's on the great bitcoin debate. that is up next. this is bloomberg. ♪

shery: time for morning calls

ahead of the asian trading day. the markets are expecting alive fed meeting in terms of rates are qe policy but when forward guidance is key, expectation is so important. what are we expecting in terms of yield? >> it's unclear which way yields will go. over at guggenheim, scott minerd saying it skewed to lower bond yield. bill gross expects a higher yield as well as inflation. deutsche bank, dipping below 2% the first half of next year. they say the fed could announce by december but if it's priced in faster than expected, deutsche bank says 3% on the 10 year. an extreme scenario, up about 6% possible.

cautioning that markets need and inflation reality check. as it stands, the consensus for the tenure is that 170. haidi: emerging markets will be looking to the fed as well to ease some of their anxiety about another taper tantrum. >> we've seen em asset step allies -- stabilize somewhat on expectations that brazil and turkey will hike rates this week. it has been a rough time for them so far. the worst start to the year since 2009. some warning the playbook of the last five years is likely to hold going forward for em assets, but strategists are cushioning against rate

sensitivity. and it hsbc, higher quality sovereigns like indonesia and peru. haidi: a fresh record over the weekend, with exuberance over a new stimulus package waning. trimming some of those losses. that's get some analysis on the world's largest cryptocurrency. in terms of the decline we are seeing and the correction if you will, when you consider the overall magnitude of what cryptocurrency and bitcoin have done. i want to put up this chart looking at the links to which you look at bitcoin. the gold ratio has gone through the roof this yea we heard from ray dalio basically saying he would rather hold the asset that central banks are going to want to hold an exchange of value what

they're trying to transact. bitcoin ever fit that definition? >> it's a good question. we were looking at gold, bitcoin is still very new technology. i think what we saw is the reaction to the stimulus package passing. traders are looking to preempt those flows back to crypto. it's all part of the big picture. after those flows was news that india is going to ban cryptocurrencies. how governments will look to regulate the new technology, we know gold has been there for a long, long time and will continue to be there. the fact that the steepest checks have arrived at a different time. when they last arrived, people were in lockdown, looking for things to do.

they invested in bitcoin and there was anticipation that would happen again this time around. however, the weather is warming up, people can go to restaurants, they can begin taking vent -- vacations again. there is other things people can spend their money on. potentially is just another correction, as you said. it isn't a big deal, is going to continue to remain that way provided it stays under that 50,000. haidi: is it concerns over how the cryptocurrencies are mind with regulatory oversight? >> investors -- there's an awareness of how crypto mining is in terms of energy.

bitcoin is mined using environmentally friendly energy sources, so that's part of it as well. shery: one of the reasons were seeing appeal for cryptocurrency is monetary policy, the printing of money. we're expecting a fed policy meeting, what will that do in terms of dollar strength or dollar weakness that we've seen recently? >> it's a hugely live meeting. i can't see any reason will see either market forecast upgrading after the stimulus package. inflation has been consistently low for a decade. i can't see any reason why there will be a change away from the town that jay powell has putting forward the past couple of months. cautiously optimistic, but still

dovish. we talking about hikes here and we haven't really had the tapering conversation down for the second half of the year. it is a little bit of putting the cart before the horse. we've got to get that tapering conversation down. i think it will stay close to zero or at zero. bitcoin remains supported. all those things we've seen work since the beginning of the year. shery: what does that mean for the japanese yen? it's among the 10 worst performers. >> they're benefiting from higher commodity prices. dollar-yen has been one of the worst-performing currencies over the past month.

we look back to 2015, there was a significant hike and the high we saw earlier in the week in dollar-yen is pretty much in line. right now it's make or break time as we talked about in terms of the fomc. i think that will continue to go higher, potentially in response to yields. remember that yields are starting to reflect what equity markets priced back in november, the improvement in the recovery. the bond market has been late coming to the party. not necessarily a bad thing. haidi: where to for the aussie? tony: i think it is found a good foothold. if the level breaks, i think we will reach that 80.07 high we

saw back in january. shery: thanks for that, tony. still ahead, we had to australia because frontera has reported a 23% surge in first-half net income, rising to $281 million. we'll talk more about those results with the woman who heads that business. on bloomberg markets china open. at the moment, we are seeing a little bit of upside for qe stocks, gaining about .15% before seven consecutive session. we are headed to the australian open and futures are pointing a little bit lower. this is bloomberg. ♪

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shery: welcome to daybreak: asia . >> and i am haidi in sydney. we are counting down to the major. the u.s. secretary of state hits out at china, accusing beijing of coercion and aggression ahead of key talks. reversal on the astrazeneca vaccine, hinting they may