no expensive machines, no expensive memberships. get off the floor with aerotrainer. go to aerotrainer.com to get yours now. ♪ >> we are counting down to asia's major markets open. >> welcome to daybreak asia. our top stories this hour. topped chinese officials and the biden administration their first face-to-face meeting with sharp criticism, exposing tensions. asian futures are pointing to the lower open for the main

benchmark as they follow u.s. stocks down amid a resurgence of inflation fears. also looking for key policy statements from the boj. some european companies resume rolling out the astrazeneca vaccine after the eu was said it is safe, but recommends a warning label. haidi: markets coming online, let's get to sophie for a check of the markets. sophie: the a focus on inflation anxiety trickling into the start of the session in asia with the first one off by 2/10 of 1%. wti extending losses below $60 a barrel, losing ground for the sixth straight day with concerns over softening physical demand in oil markets. we have the softer dollar weighting, and checking in on bonds, the aussie 10-year yield topping 185 this year.

we are seeing the curve steepening stall somewhat, but it is eyeing a peak we saw in february. tech shares under pressure while we have banking stocks nudging slightly higher in the city session, gaining ground, and perhaps seeing elevated yield. switching past the board, to see what has happened elsewhere, the s&p, even a little changed. nikkei futures pointing to the upside, but we may see the stall giving the broad risk off tone from wall street, and the end, the big focus is on the boj policy review. and this is with speculation that the central bank may widen for j bg yields, so traders may test that upside. haidi: the first high-level talks between the u.s. and china, president biden took

office and it got off to a difficult start with officials from both sides offering sharp criticism. they had hoped that it would lead to a summit between president biden and president xi next month. tom, the opening with pretty stinging rhetoric, and i suppose this is the suspected airing of grievances, or does the set the tone for what outcomes we could expect? tom: it is quite remarkable. it is clear why both sides were playing down expectations. they have taken the gloves off in these comments. one line that particularly stands out that says, and i think this speaks volumes -- the u.s. does not speak to china from a position of strength. china coming in with the economy recovering and covid-19 under control, they feel very comfortable. that one line is very

significant. he also said, the u.s. does not represent western or global opinion. take a listen to him speaking in anchorage. >> u.s.-china trade has seen progress and we should take that to the next level. tom: there he was talking about trade so he did say he wanted to see trade between the two sides improved and he said that has already seen significant upside and he said that all countries around the world are looking for the u.s. and china to repair relations, but he is not holding back and his criticism. here is comments following the comments of secretary of state antony blinken who was direct as well. he talked about the fact that in some common chinese actions, they threatened the rule of order. sec. blinken: we will also discuss our deep concerns by actions of china including hong kong, taiwan, cyberattacks on the united states, economic

coercion towards our allies. each of these actions threaten the rules-based order that maintains global stability. that is why they are not merely internal matters and why we feel an obligation to raise these issues here today. tom: frosty started these talks in alaska and they continue for another full day, so we will see what happens, we will see if they can dial down these tensions. as we were saying and are reporting, the chinese side was hoping they might be able to engineer and set up a meeting, a summit between the presidents as soon as april 20 second, earth day to mark climate change commitments. that seems in doubt, but that was one of the aims of the chinese side going into this meeting. shery: rhetoric has already been so harsh from both sides, what can we reasonably expect to come out of these meetings?

tom: there were two areas where both sides said they could look to cooperation. one is climate change, and that was to have the president sit down on earth day and the other on global health care and covid-19. both sides privacy potentials for global cooperation there. but the question is whether these areas of steep tension that get in the way of that kind of cooperation. the chinese side came into this meeting with a whole laundry list of demands including curbs and sanctions on chinese officials and entities, those technology curbs and restrictions on visas for many chinese individuals. all of those things were on the laundry list for the chinese side. in terms of the biden approach, nothing has substantially changed from the trump era, and they have not rolled back tariffs.

they increased restrictions on the wall way and they doubled down on sanctions on hong kong. the rhetoric has become less volatile, they are building out alliances, but in terms of the practical implications of u.s. policy, there has not been a significant role back yet. >> tom mackenzie there in beijing. we will have more analysis on the alaska talks ahead. former pboc advisor joining us later. for now, let's get to vonnie quinn. vonnie: north korea has ruled out further talks with the u.s. for now with the u.s. for now with a senior diplomat saying washington was "time delaying trick." the official said the u.s. is not to ready to accept the new change and new times. the comments came during a visit by the u.s. secretaries of state and the defense to seoul.

tokyo state of emergency set to end monday. japanese prime minister said that targets for relieving strain on the health care system were met even as coronavirus cases rose slightly. easing restrictions is seen as a gesture of optimism before the olympic torch relay begins next week. >> i have been saying that we need to extend the state of emergency and to judge carefully until now. as we have been meeting the criteria and a stable way, i have decided to lift the state of emergency. vonnie: european countries including germany and france will restart using the astrazeneca vaccine after finding no links to an increase in blood clots. the guidance came after several countries paused inoculations, adding to the hurdles that the region faces. the regulator suggest adding a warning. new zealand is considering

limiting mass tourism in order to preserve its green image. it says the country cannot return to its pre-covid tourism model, and changes are needed to stop damage to the environment. the tourism industry has been battered in the pandemic. global news, 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> still ahead, we will be speaking to senior migration specialist about the issue facing migrant workers in asia during the pandemic. you will join us later in the hour. the coming up next, we will hear from an economist and former boj assistant to governor ahead of the central bank's policy review. this is bloomberg. ♪

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>> the bank of japan will unveil the results of its biggest policy review since 2016 and a few hours. kathleen hays is stepping by -- standing by. kathleen: thank you, this person was four decades the bank of japan as assistant governor. he has been with the missoula research institute as their executive economist for the last few years. we are happy to have you back. if it were not for the virus, you and i would be standing on the street outside of the bank of japan, talking about this topic, so thank goodness resume and virtual conversations. what do you think the purpose of this policy review is by the boj? 2016 introduced yield curve control. what do you think the boj is trying to achieve? >> the primary reason

behind the review is to make everything -- it takes a lot of time to get to the -- so boj wants to minimize, and maximize the effectiveness going forward. kathleen: they realize this is not a sprint, it is a marathon, so when you look at the list, we were just showing the yield curve control. you have said recently you do not think they well, but the nikkei reported they may widen it to 25 basis points on either side of 0 to 20 basis points. the deputy governor that spoke just a week and a half ago saying he disagreed that the boj did not need to do it. nonmembers in the board saying

we need to discuss it, maybe we will. >> at the same time, this gives more opportunity for traders to buy and sell the bonds to make money. i think the boj will lower the interest rate going forward. and whether it is going to be 20 basis points are five basis points, i do not think it will be meaningful change because it is a very big u.s. guideline as they have 25 basis points -- kathleen: my colleague david in glace think that one of the

tweaks could be to tell us exactly what that band is? kazou: it is hard to tell because the formal information for the boj, they only say -- basis points. the observation, at least everyone had a -- it could actually, but the 30 basis points in the first place, but that is the situation where we stand, and that is why i said five basis points, 25 basis points, it does not make much difference. kathleen: how much of a difference does it make to drop when it comes to etf purchases, 6 trillion yen annual targets, keep the $10 trillion yen maximum limit -- they will get

more flexibility. does that hurt anybody right now to have the boj buying so many etf's, 70 stocks? -- so many stocks? >> actually, the boj has already become the largest holder of etf stocks. the boj going forward on average to make it more sustainable, but at the same time, whenever the markets comes under threats. at the same time, it continues to be walking back stuff for the stock markets. maybe they will leave ¥12 trillion, but they don't want to

stick to any number of the guideline. kathleen: the third thing they are expected to do is somehow send us a message about negative read and it has been explained to me, make people realize the boj is not out of ammo, they could cut rates even more negative, but people say that will hurt the banks even more. what can the boj say that it can do to make us believe that they will be willing to do its, cut it even more negative, and not hurt bank profitability even more? kazou: that is a very good question. the boj does not feel that -- it is very, after the doj

has to stress and cut, we see the significant target on the market. kathleen: we saw a little bit of a selloff. is there anything bearish for bonds about the boj deciding it may want to widen that band -- is there a reason to sell bonds on that? >> current situation with the u.s. bond markets, i think the boj will be very careful today not to send any message that the interest rates are higher and japan, so that is why the boj

will have very careful communication and they would rather have as stable load of interest rates because at the same time, that will give more opportunity for the traitor by himself going forward. kathleen: thank you. joining us from tokyo. shery: kathleen hays there. you can turn to your bloomberg for more on the boj policy review. go to get it and analysis. up next, the u.s. marks a vaccine milestone as president biden meets his goal of 100 million shots weeks ahead of schedule. more on that. this is bloomberg. ♪ ♪

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shery: hey look ahead to the start of trading in japan and about 40 minutes, here are some stories we are watching. pressure mounting for toshiba ocl -- ceo, forcing toshiba to launch an independent investigation into alleged voting issues at a general meeting last year. tokyo olympic organizers will hold an online meeting on saturday to discuss whether overseas spectators will be allowed to attend. the state of emergency in tokyo is set to end on sunday even as coronavirus cases in the capital rose slightly. japan really trying to rein in the infections as we head towards the tokyo summer olympics. with the domestic travel campaign, that has been tough and really put pressure on japanese prime minister. this as we continue to see virus cases rising around the world. we are seeing new daily cases

now starting to flatten as we continue to see daily vaccine doses around the world rising. perhaps more odds -- positive views on the vaccine and coronavirus infections around the world, but the picture has been mixed globally. in the united states, president biden announcing that on this friday, he will be achieving the 100 million doses since his administration took office six weeks earlier than scheduled. great news when it comes to vaccinations in the united states. different picture when it comes to different parts of the world. we are seeing successful vaccination campaigns in chile, but in brazil, they are still way behind. daily number of deaths reaching new records every day. emerging markets developing any economies are struggling and scrambling to get to more of those doses. haidi: of course, the pandemic has had to impacts in a myriad

of ways including logistic ways as well as demand on global semiconductors. the stay-at-home trend pushing into that narrative. the global chip shortage is helping push cargo demand when it comes to japan's biggest airline ana. it is now expecting profit to span this fiscal year. bloomberg talks to ana. >> mainly free items are driving it at the moment. one is car equipment. the second is semiconductor. and the last one, stay related goods. sales halted initially on car demand but they rebounded quickly. especially in china and the u.s.. additionally, demand expanded to as new models were introduced by car companies.

electric devices, sales have increased in 5g related equipment, smartphones and semiconductors. most of all, what is unique at this time on the back of this pandemic is that demand related to stay-at-home and work from home lifestyles have pushed up demand for home computers and games. cargo sales used to account for about 10% of all of ana revenue. the passenger flights have dropped significantly over the past year, but that loss was offset by increasing cargo business. we all know cargo demand always increases in crisis periods such as natural disasters and wars. i believe this is the same kind of situation we are in right now. >> do you expected the cargo business to grow, and what kind of demand do you see? >> we need to focus both on supply and demand. i believe the current trend will continue for some time, but the

demand side. once people start to feel comfortable as vaccine inoculations proceeds, demand will return. the supply side, once the number of passenger flights returned to where they used to be, i believe the competition will get fears. cargo can get delivered on passenger flights as well. >> how will a m naik competes with other global careers to become a top five career globally, and is there a specific timeline? >> in the coming years, i want ana cargo to become one of the top five cargo carriers in the world. it will not be achieved by increasing the number of freighters, but achieving the efficiency. by using aircraft with more cargo capacity and carrying cargo which other carriers can't deliver like precision machines and goods that require special care. >> which side do you plan to

strengthen the most and why? >> we would like to strengthen the transpacific carriers, covering japan, china, and north america. this is because the economic growth prospects in these areas -- they are seen as the biggest. >> that was the ana cargo ceo. let's give you a quick check of the is the/headlines. global insurer chubb is proposing a takeover of hartford financial services. it values hartford at $65 a share with a 13% premium on wednesdays closing price. chubb has yet to receive a response from hartford. rebound from a pandemic slump and supply chain problems in america. sales total 10.4 billion dollars in the third quarter which is far below analyst projections of $11 billion. recovery has shuttered

doors and europe weighing on the results. coming up next, oil extending losses in the asian session. we have the details ahead. ♪

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(announcer) do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. that's aerotrainer.com. ♪ >> breaking news out of japan. the core cpi numbers for the month of february seeing a contraction of .4% which is in line with estimates. also surprise the declines narrowing from the previous month, but the deflationary streak continues. we are talking about the declines for the last seven months. take away food and energy and core cpi rising to 2% year on

year. in line with expectations, and a slightly accelerated trend than the previous month. we have seen underlying pricing, and we did have the state of emergency since january. the tokyo will see that lifted on march 21. some upside pressure coming from rising energy and import costs, but still in deflationary territory. that is for seven consecutive months for the core cpi numbers. let's get to vonnie with the first word headlines. vonnie: the first high-level talks between chinese officials and the biden administration got off to a rough start with each side criticizing the other over issues. secretary of state blinken began by arousing concerns of cyberattacks. and biting back, saying that western nations do not represent global opinion and a calling the

u.s. "the champion of cyberattacks." president biden said the u.s. will clinch his goal of delivering 100 million covert shots by friday, six weeks ahead of schedule. they hit the mark with 66 million receiving at least one dose. he is on course with 200 million vaccinations by his 100th day. pres. biden: keep the faith. keep wearing your mask. keep washing her hands. and keep socially distancing. we are going to beat this. we are way ahead of schedule but we have a long way to go. vonnie: the u.s. is weighing sanctions to block the construction of a nearly completed russian natural gas pipeline, fearing that it will give kremlin more leverage in the region. they could target the project's parent companies. global news, 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more

than 120 countries. i am vonnie quinn. this is bloomberg. haidi: let's take a look at the play when it comes to markets. what you saying? sophie: risk off friday with stocks falling, bonds rising. currency little changed and the dollar holding onto its overnight. getting derailed with the u.s. 10 year rate touching 175 in the new york session, and the aussie benchmark yield on 84, this as we see banking stocks mixed in sydney. and off by 7/10 of 1% and energy also a big drag. this is wti extending losses for six straight days, falling for 60 bucks per barrel. we see asia adding to the pressures. rbc capital saying do not fight the constructive correction in oil seeing that global demand is

bouncing back this summer. pulling the chart on the terminal with this backdrop. we may see this fall and energy stocks pair the events in energy value stocks, but they are set for the best week against their growth peers in this year. and switching out the terminal once more so we can see how we are shaping up this month when it comes to global stocks. we are seeing tech being the worst performer. this as the fragile recovery in tech shares has hit a speed bump. we have seen the nasdaq 100, but we take a look at the top of the table. some of the rotation trade at work. shery: let's bring in my cranfield -- mark cranfield. and the rising treasury yields with the 10-year above 170, and it takes me to the question of

the day. how long before we get to 2% yields and your thoughts on what that would mean for risk assets. mark: as long as it is a continual gradual climb, investors will probably take it as being a positive signal for economic recovery is a central banks try to -- so we are seeing that tech is underperforming compared to so-called value stocks. there has been a lot of funds flowing into value stocks over the past couple of weeks, and there is probably more room for that to go ahead as people see economic growth expanding across the world. the fact that europe is going to start vaccinating again more effectively with astrazeneca will probably help to get the european economies back on track as well. there is going to be an effect on what happens with equity

space across different sectors. there also be impacts across the currency space as well as the u.s. dollar will probably have more of a support then it might have done otherwise. but it is the pace of how quickly we get to the 2%. if it is a gradual move, it is not too bad. but suddenly, central bankers and traders will get nervous about it. we may need more speakers to come out and try and calm everybody down. it is a bit of a distraction between the pace and the actual getting bare to the 2%. there is still a lot more to play out, but the short term, probably seen as a decent thing for asset classes in general. >> we already saw the reaction of the yen amongst its tweaks to be announced today, and why -- widening the

yield target. what are you expecting to see? mark: probably in the equity space, but the bank of japan will remove its target for buying etf's. the bank of japan has become a substantial holder, and that does provide support to the stocks rally. if they suddenly stop buying and they only become the buyer after markets have fallen, than that could be a challenge in the short term to the japanese equities. certainly people in the stock market will be finding this to see if that is or not. we will be looking at the u and of the japanese yield curve as well which has been in anticipation that there'll be some changes to the yield curve target. we will get a better reading later in the day.

certainly, bonds and equities are the two most likely to respond and as far as dollar-yen is concerned, it probably has a lot more to do with the rise in short-term yields, so whatever happens to treasuries and the u.s. dollar broadly, it has a wider impact on the yen than anything the bank of japan is likely to do today. shery: japan is closing in on taiwan's position as asia's best performing stock market and perhaps taking a bid from the rotation that was seen towards cyclicals and value stocks. are we going to continue to see that change in leadership across asia? mark: the theme of al euro rotation into value is probably a strong enough one that it will have some legs. it probably still has quite a way to go and tech outperformed by such a huge amount particularly last year that there is probably still a lot of wind to be taken out of those sales. japan is well-positioned to

benefit from that and the fact that the yen is stable but relatively weak helps japanese exporting companies as well, so whether japan can completely catch up with someone like taiwan who is in a great position as far as semiconductors are concern and that is a major shortage around the world, but we have companies like taiwan semis who have done such a great job of ramping up supply in difficult conditions. taiwan will remain a leader in that respect. it is with more attraction to be gained in that respect. >> mark cranfield there. you can get more on all the days trading action in the markets live blog and that is on the bloomberg at live -- live . ray dalio says that rising

inflation could force the federal reserve to raise rates earlier than anticipated. dalio says that the real risk of the economy being overstimulated. ray: think of the economy as being like an individual, and there pulse is dropping. when the pulse is dropping, the doctors come in with the stimulant and they inject stimulant. now that the economy is rebounding and inflation pressures are rebounding, there is not the same pressure to administer that stimulation. when it happens, when it becomes a problem is first, the rising interest rate start hurting financial asset prices. they hurt bonds then they hurt stocks, because still interest rates -- maybe the stock market

can correct 10% or 15% and the federal reserve can tolerate it. when it goes beyond that and starts to affect the economy, that is where you see the real trade-off start to surface. that is what that looks like. david: let's play a little dickens and ask about the ghost of christmas future. at the end they say, is this what it has to be or can i change it somewhat -- could we change it or could jay powell change it? ray: our basic situation is that we are spending a lot more money than we are earning. that gap exists and a balance sheets means that we owe a lot more money and that owing that money is someone's financial assets, that bonds that they might sell. it is not an easy thing to

change because what do you do, spend less money? and if you spend less money, you give less checks out? it is a difficult dilemma, and it is a particularly difficult dilemma that i think that you are going to see, particularly the part that is late this year and beyond that. >> bridgewater associates co. cio and founder, ray dalio. you can catch the full interview on wall street week erring later on friday. head out next, why singapore is building back better in the pandemic. we discussed the changes it is making for migrant workers. this is bloomberg. ♪

>> model minority myth was not something that was fabricated by the asian communities. it was incredibly successful. >> we know it is probably not going to end tomorrow, but it is our job to make sure that we keep people safe and give people dignity. >> i spent a lot of time last year to listen, reflect, and understand what i can do as a leader of this organization. >> for many years, we have been

very shareholder focused and now there is much more a community requirement. >> we are seeing unemployment and income losses affecting women more than men. >> two thirds of the jobs lost in south africa were women's jobs. we are in a moment of crisis. >> our societies are reproducing, not producing any quality. >> we need better public policy and we need companies to step up. >> we really tried to up our game as it relates to diversity and inclusion. >> the fourth annual bloomberg any quality summit discussing what is needed for a fairer society. southeast asia where migrant workers at the bottom rung of society have borne the brunt of the covid-19 pandemic. these workers number some 10 million in the region, and the group could prove to be a key risk to the region's ability to shake off the pandemic. so what can be done? joining us now to discuss is the

senior migration specialist for the labor organization, nilim baruah. thank you for your time today. give us a picture of how bad the situation has be during the pandemic for migrant workers. nilim: thank you for having me on the program. migrant workers were amongst the most effective in southeast asia when the pandemic, when infections were at the highest in singapore. 90% of the infections were migrant workers living in dormitories. in thailand where they have a second wave, there was a lot of migrant workers in the seafood industry, who were affected in malaysia. there have been a lot of migrant workers impacted in the middle east, and there are various reasons for it.

one is the nature of the work. migrant workers are essential workers and they have to continue working during lockdown. there have been some bad examples of employers who are not providing sufficient protection equipment, allowing workers to socially distance. they have been one issue that has come up very vividly during the pandemic is the substandard and inadequate housing accommodations. living in close quarters, crowded conditions, and also in terms of social protection and income support, they have not been treated equally. >> have we seen any changes especially both from the private sector as well as perhaps government intervention? nilim: it has been a year since the pandemic started impacting

southeast asia and there have been changes. first of all, there has been a robust health response so when terms of testing and now even the rollout of the vaccines, i think governments have realized that migrant workers need to be treated equally with nationals. they make a big contribution to the economy in singapore, and migrant workers comprise 80% of the workforce. and in other countries, they make a big contribution to certain sectors, so from the health side, they have been a robust response after lessons learned, and also, with regards to accommodation, they have been a realization that the minimum standards for employee provided accommodations should be improved.

>> what about public sentiment. governments are beholden to what the public thinks and the international labor organization has done surveys that show it is stink to lack of empathy for migrant workers across asia. do you think that could change post pandemic? nilim: that is correct. public attitudes towards migration and migrant workers is important and we have done surveys in the region in thailand, singapore, malaysia, as well as japan, and what we have found in thailand, malaysia, and singapore, it is not supportive. for example, majority of respondents in our survey found that migrant workers should not receive the same pay and benefits as nationals. in fact, they should have the

same employment and working conditions. then there is the treatment of undocumented workers. in the pandemic, there have been cases where undocumented workers were housed in detention facilities which was crowded and they were resulting infections, and the public attitudes towards undocumented workers is generally that they should not -- they are not entitled to rights. with regards to undocumented workers, while the state has the right to control its borders and take measures to reduce irregular migration, undocumented workers have the same labor rights if they have been working. they are due though wages and benefits, so that should be recognized. i should say an important development in the region has been in singapore from the highest level from the prime

minister downwards, the recognition of the contribution of migrant workers to the economy and improving the quality of life of singaporeans. that is very welcome. >> just before we let you go, are you hopeful that the rollout of vaccines and access to vaccines will be done in an equitable way and terms of it being provided to these migrant workers across the region? nilim: there is realization that where public health is concerned, everybody has to be treated the same because there is an interdependence. if there are infections amongst migrant workers, it affects the country's health as a whole, so there are announcements in malaysia and in singapore as well as thailand that in the vaccine rollout, migrant workers will be treated the same, and they will have the same access as nationals. >> nilim baruah, thank you for

your time with us today. we have more to, on daybreak: asia. this is bloomberg. ♪ this is bloomberg. ♪

♪ >> goldman sachs reportedly bringing in changes to make the work load more manageable for junior bankers. a group of new hires complained of 100 hour weeks on the job and not having enough time to sleep or shower.

sally bakewell joins us now. goldman has recently been under the spotlight for its work culture. what are we learning now about these conditions? sally: this was a survey of 13 junior upstarts in the banking division. that division has been on a tear toward the end of last year with revenue climbing 27% from the year before, and that the investment banking pipeline is at record levels. this group of analysts are indicating because of the deal flow, they are physically and mentally burnt out from working on average 98 hours a week since the january. and some of them say they cannot see themselves lasting for six months with these conditions and as you say, they do not have time to shower and to eat. that kind of deal as well as working from home which blurs the boundaries between home and office is probably the most likely factors behind that.

goldman has acknowledged how busy it has been in has been something of a strain and says it is listening and looking at ways to address that concern and that it is addressing that concern. >> you mentioned the key difference in age with the story like conditions working in the finance sector and investment banks. does the fact that we had a pandemic and workplace conditions are changing mean that there could be prospects for change? sally: many bankers to say the strains of long-term remote work are growing for both bosses and the underlings with zoom fatigue and jobs colliding with home life. we just had jeffries offering it to junior bankers perks in the form of a peloton, a mirror homework health system, or an apple watch as a kind of reward.

that is not connected to the goldman news but it is something to recognize that the bankers are toiling away making sacrifices. >> bloomberg editor sally bakewell. let's see what we should be watching fred that japan and south korea open. sophie: on boj decision day, with this, topics on the radar, it includes a possible tweak to the reserve system and it may adjust its why cc target. financials lying awake continuing to lag it, and topping 2000 yesterday. the best week for the benchmark since 2009. >> coming up, we get more markets analysis from the per folio manager, who joins us at the top of the hour.

we have the market opens in tokyo and seoul, next. this as we had another skyrocketing session in treasuries overnight. this is bloomberg. ♪

shery: welcome to daybreak: asia from new york. i'm shery ahn. haidi: asia's major markets have just open for trade. our top stories, the first high-level talks between chinese officials and the biden administration began with pickering alaska. both sides crew size each other -- both sides criticize each other over a range of issues.

written -- renewed concerns over inflation and the bank of japan will end months of speculation with the policy tweaks expected for bond yield management and asset buying. shery: pressure across equity markets. soph? >> we are seeing losses early in the friday session. we saw the nasdaq fall about 3%. the 100 raising once again. the nikkei 225 losing a 10th of a percent. this is on the boj's policy review ahead of that. prices falling for seventh straight month. underscoring the difficulty of the central bank when it comes to inflation. the yen is steady below 109.

the strengthening doctor -- strengthening dollar and jgb traders will see if there are tweaks to the white tc program from the central bank. we may see the 10 year fluctuate. what's he was happening in south korea. we are waiting on the finance ministries meeting on the housing market. we have the housing economic assessment report out as well. you're seeing losses of more than 1% for the kospi. the korean won is on the back foot. let's see how moods are shaping up in australia. downside pressure for the asx 200. it is halting a two week advance. we are seeing tech under pressure. energy the biggest laggard on the benchmark. brent under pressure.

markets are coming into the spotlight on weakening physical market demand being a focus. inflation concerns also a drag. the aussie 10-year gilts gaining ground. the u.s. ten-year rate back above 171 this morning. haidi? haidi: let's bring in jim bay. great happy with us. another night of volatility when it comes to treasury markets or equities falling back in the u.s. at what point does this does what we see in the bond market have an impact on where we see stocks go from here? >> that's a great question. good morning. our view is different. compared to the previous issues where we had the bond yield rise. and because the fall across equity market. what we are santos point and turn them -- in terms -- what we

are seeing in terms of equity market weakness underlies the fundamentals of recovery seem intact. we had one of the best reporting season's in something like two decades. economic recovery is on its way. we are central banks around the world, they have been committed to a very easy monetary policy. interest rates are not likely to go up higher over the next 18 months. all that together will indicate that the short-term profit taking underlying the fund metals for equity markets is looking very strong. haidi: as you point out, we're are seeing value outperformed growth by the tune of over 30%. does i continue? what opportunities do you see in that space? >> we see this value or reflation trade yield dominating

the returns this year. reflation also and return to work. these are the sectors that belong to that value group. these are the companies that have been impacted, whether these are travel businesses, shopping centers, offices. and airports. a lot of those assets have been under pressure in terms of earnings. they should outperform this year as people return. undervalued areas are some of those energy spaces that we talked about. oil price fall back indicating volatility. if the oil price stays where it is, which we firmly believe in the next 12 months, fundamentals looking very strong for oil, those oil equities, the entire sector will have a meaningful earnings upgrade. that could be the sector that really gives returns in the next 12 months. shery: we have seen japan under

form a little in the getting of the year. they seem to be catching up. china now a little stretched and selling off. >> absolutely. if you look at, ultimately, the composition of the index, then you can see where the return will come from. at the moment there is a lot of profit taking across the high-growth space. those sectors that benefited from covid. china happens to be very much dominating with those companies and sectors. you will see them underperform as the market turns to other cheaper spaces. i look at the australian markets, we have the financials and resources dominating our index. that should be very good capital flow combined with very high dividend yield over the next 12 months. it puts australia in a very good

position. shery: how much more room to gain do financials have given we have seen a rally already with the rise in yields? >> financial still have a lot of room to grow. they have underperformed significantly over the last 12 months. for australia, it has been even longer. we see more room to move. earnings are heading the right way. with economic recovery, these businesses are very leveraged instruments to upside, to economic positive surprises. we absolutely see a lot more room to grow. shery: we have seen strength with the dollar. the chart showing now that we may see more upside. dollar shorts starting to fade. how will that affect your asset allocations across asia? >> i think if you take a -- when

you think about an allocation, you have to take a strike lee -- a slightly longer view, a 12 month view, and make your strategic allegation. on a 12 month view you should see the dollar weaknesses and that then more strength across other currencies, asia particularly. as the recovery comes through they should be more -- there should be more capital pushing into those spaces. shery: dollar short fading away coming in. we could see a rise in the dollar. jun bei liu, it was great having her thoughts. vonnie? >> germany and france will restart astrazeneca vaccine usage.

the bands came to after countries pulled inoculations. the regulator recommends adding a warning over rare cases of blood clotting. president joe biden says the u.s. will administer 100 million covid shots by friday. that is six weeks ahead of schedule. the u.s. hit the 100 million mark last week with 66 million receiving at least one dose. his goal is based on jabs given since he took office. he seeks 200 million vaccinations by his 100th day. >> keep wearing a mask. keep washing her hands. keep socially distanced. we will beat this. we are way ahead of schedule. we have a long way to go. >> tokyo's state of emergency assent sentiment sunday after more than two months. the japanese prime minister said targets for relieving strain on the health care system were met. even as covid cases rose in the

capital slightly. this suggests optimism before the olympic torch relay begins next week. >> i have been saying that we need to extend the state of emergency and to judge carefully until now. as we have been meeting the criteria in a stable way, i have decided to lift the state of emergency. >> 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. shery: still had we look to the boj's new policy framework announcement. up next, the talks have just started and already the u.s. and china are exchanging barbs. we will have the latest. this is bloomberg. ♪

haidi: high-level talks in alaska between the u.s. and china have gotten off to a contentious start. each side sharply criticizing the other over a range of differences. stephen engle's there and high -- in hong kong. >> got off to a rough start, but this is not to be unexpected. this is a divorce or marriage counseling. it is better to air their grievances right off the bat. that is what this meeting is about. a lot has happened in the year plus since this -- since the two sides have met face-to-face. we've had the pandemic and blame game going down, the crackdowns on hong kong, three reelections of the independent-minded leaders in taiwan. by the way, there is also a change in the administration in the u.s. still a lot of bad blood building up.

this is a chance for the two sides to vent, to air their grievances. antony blinken, the secretary of state, this is how he started his comment to the chinese side -- >> we will discuss our concerns with actions by china including in xinjian, hong kong, taiwan, cyberattacks on the united states, economic coercion towards our allies. each of these actions threaten the rules-based order that maintains global stability. that is why they are not internal matters and we feel an obligation to raise these issues here today. >> the top guy on the chinese guy is the right-hand man for xi jinping on trade matters. he shot back with a lengthy monologue. he said the u.s. does not speak to china from a position of strength. let's hear from him.

>> [speaking foreign language] the u.s. itself does not represent international public opinion. neither does the western world. >> that was a short soundbite, but the monologue was long. he talked about how antony blinken's comments were somewhat condescending and he said the u.s. could not talk about their own version of democracy and human rights when they have their own racial issues domestically in the u.s. as you can see, it was an airing of grievances, dirty laundry. now the issue is will they go behind closed doors and get to the real negotiation? shery: that's where things get tricky, right? already a pretty tough position for both sides. at this point, what would you set a benchmark for success or failure? is the bar really low at this point? >> the bar is pretty low. i was -- i saw a story yesterday

where the chinese alluded to someone of a reset if the talks went well. perhaps biden and xi jinping could have a meeting as early as next month. that would be an absolute positive outcome for this. this is, again, a chance for the two sides to vent and behind the scenes, as long as they do not walk out on each other and air their grievances somewhat politely, there will be three formal negotiating sessions between today and tomorrow in anchorage. we will have to see coming out of that. keep in mind, these comments i just played were really intended for their domestic audiences. that is why we have soundbites. one soundbite will go to china. the other will go to the u.s. domestic audience. that is what they will play during this long marriage counseling session after a breakup, really. irreconcilable differences some would say in this relationship. we will see after two days of talks. shery: stephen there with a

breakdown of what to expect from those meetings. soon a former pboc advisor joins in the next hour. this is bloomberg. ♪

shery: the eu is set to approve sanctions against the business interests of those responsible for last months military cute -- military coup in myanmar. this is according to reuters. it will happen on monday. we have more. dan, could we see some action? >> that is right. the eu has lagged. the u.s., canada, the u.k., inputting targeted sanctions on the coup makers after they took power on february 1. this action has been expected

for a while from the eu. they hinted at this for a bit. it should come as no surprise. it shows the dividing line between the west and asia on implement inc. sanctions -- implementing sanctions to finish -- to punish the generals financially for the takeover and bloodshed we have on the streets. haidi: as we see the u.s. and china meet in anchorage today, is there a missed opportunity for beijing to play a greater role with its influence in myanmar. >> it hits at the core divide between the two countries. we saw the opening statements at the u.s. china meetings descendent to over this question of human rights. china objecting to what the u.s. brought up, xinjian and hong kong, saying the u.s. has no

right to lecture anyone on these types of issues. that shows the broader mindset of china right now and applies to other countries like myanmar, where if china were to back the west and that fight, they see themselves as potentially opened up to similar action at home. that is the issue facing a lot of countries in asia. do we want to punish myanmar in a way that could eventually come back and blowback on us one day --? china is trying to calm things down. just as a border country, a neighboring country, they have a more acute interest with myanmar. on that particular question, they have a completely different approach. shery: we already see more charges levied against aung san suu kyi.

what is the latest on the ground? >> the military has added a corruption charge. they had a businessman, and claim he gave her cash. to help smoothen the way for his own financial gain. all of these charges against suu kyi, she has had no right to defend herself. she has not been able to meet with her legal team since the coup. they deny all these charters and say they are all political grandstanding by the military. the military is very keen on justifying can -- justifying keeping her behind bars. they promised to hold another election and really do not want her running because she has one big every time she has run and they know she is the main obstacle to them taking power in a way the international community does find legitimate. haidi: the situation continuing

there. let's get the latest headlines. pressure is mounting on toshibas chief executive after shareholders voted for an independent investigation. that resolution was brought about by the largest shareholder. it emerged last year to have its cofounder to toshibas board along with other directors. that was rejected. they'll start a review of their single network plan to combine landline access. that proposal would mean a return to monopoly, reverting to decades of deregulation. bloomberg sources say italy would prefer an accelerated rollout in rural areas and for other companies to step of

composition. chinese software company raised in its open -- u.s. debut. share started at $27 and close a little lower. the tencent backs company has a value of around $14 billion. it was the second-biggest listing of a chinese ipo this year. shery: the global ship shortage is boosting cargo demand in japan. it is offsetting low numbers of passengers during the pandemic. bloomberg spoke toa7a cargo ceo. >> [speaking foreign language] mainly free items are driving cargo demand read one is car equipment. another is semiconductor and electric parts. lastly, stay-at-home lifestyle related goods.

global car demand -- sales halted initially but rebounded quickly. especially in china and the u.s. additionally, demand expanded as new models were introduced by car companies. electric devices -- they increased, smartphones, semiconductors. most of all, what was unique this time on the back of the pandemic is demand related to stay-at-home and work from home lifestyles have pushed demand for home computers and games. they used to account for sales of about 10% of all anz a revenue. as you know, the passenger flights have dropped significantly over the past year. that lost was offset by increasing cargo business. cargo demand always increases in crisis periods, such as natural disasters and wars. i believe this is the same kind

of situation we are in right now. >> you expect the cargo business to grow over the next quarters and what kind of demand do you see? >> [speaking foreign language] we need to focus on supply and demand. i believe the current trend will continue for some time. for the demand side. once people start to feel comfortable that inoculations receipt, demand for clothing and food in restaurants will return. for the supply side, once the number of passenger flights returns to where it used to be, i believe the competition will get fierce. cargo can be delivered on passenger flights, as well. >> how will a&a compete with other global carriers to become a global top five carrier? is there a specific timeline to achieve the goal? >> i want a&a cargo to become one of the top five cargo

carriers in the world. it will not be achieved by increasing the number of freighters but by increasing the efficiency. carrying cargo which other carriers cannot deliver, like precision machines, and goods that require special care. >> which have to you plan to strengthen the most? >> we would like to strengthen the transpacific areas covering japan, china, and north america. this is because of the growth prospect in these areas are seen as the biggest. shery: coming up next, the boj could be set to allow bigger fluctuations in the benchmark 10 year yield. what is expected in the banks policy review. this is we continue to see rising global yields. we have already seen jumping the most since november to the 2018 hi. we continue see it -- continue

to see outperformance today as well. perhaps japan could wind in the 10 year yield target range. we will be watching. this is bloomberg. ♪

shery: we do have the preliminary retail sales numbers for australia. expected at any moment now. we did expect to see about 6/10 of 1% gain when it comes to the pace of retail sales here in australia. that was after the prior gain of a half percent there. we are not seen this number out just yet. previously we had seen household spending rise at a slower than expected pace. all of that has been impacted by a number of lockdowns across

queens land, as well as in melbourne. were seeing a contraction of 1.1%. that is a big miss given that expectations were for a gain of six tense of 1%, going on that modest gain of have a percent. a drop of 1.1%. it does not bode well as we get to the end of some of the pandemic related wage support measures by the end of the month. that will play into the huge beat when it comes to the job numbers that we got yesterday. the retail sales numbers giving us an indication of more pain to come for the aussie economy. shery: a mixed picture. we are a half-hour into trading in japan and south korea. let's go back to sophie for what to watch. soph? >> take a look at the action day -- today. markets led lower by korean

socks -- stocks. still gains for real estate and health care. the best performers this week. energy indexes down 4% for the week. oil price is extended and losses below $60, brent below $63. pull up the chart on the terminal. not everyone is giving up on the crew rally. ubs is saying some setback was bound to happen. with opec's cross -- cautious approach. that is being reflected with rent -- brent remaining for now. take a look, switching the panel on the terminal, we have mining and energy related names under pressure. the energy space, while airlines are climbing. ship shortage opens an advantage for a cargo business. checkout banks. building on thursdays jump. including spotlights on the

system failures. banking stocks rising on the five days ahead of the boj's policy update which may offer a hint on how the central bank will try to warm up banks to the idea of lower negative rate sharing. shery: the bank of japan ending those three months of speculation later today when it is expected to tweak its bond yields management and asset presages. let's bring in the vice chairman and chief japan economist of credit suisse. he joins us from tokyo. always great having you on. we were expecting minor tweaks, minor changes. we had the nikkei report saying perhaps the beach -- boj will be widening the 10 year yield gap. just tell me where do you stand? >> well, actually, we expect as reported already in the media,

slight widening of the 10 year yield target. in the meantime, boj will continue to stretch desk -- stress that if markets fluctuate , like of stock markets go down meaningfully, they will continue to intervene. or they would say that they will be aggressive. if the market situation becomes very unstable. they have a backstop. in the meantime, they tend to think that for the moment as long as they need any major easing or stimulus in terms of capping heavily interest rates or raising stock prices. we are not that right about that, mainly because we will again stress their stance if the

markets move. shery: any at the markets took this as a tightening move. they did not react well. why are they doing this now? is this because they can afford to given the weakness of the yen? >> no, i think it is a little controversial, but there is a side effect or cost of easing, which is unfortunately structural. many have been aware of it. of that inflation. in the widening of wealth inequality. it is not the central banks drop to fix the wealth issue, although the inflations differ by bank, and the boj seems less inclined to ignore overheated markets. if they do cap interest rates,

that might affect even the stock markets. i do not think they are right about the bubble. in the meantime, they have started a concern about risk of other inflation going higher and higher. that might have some side effect on wealth issue, inequality issue, financial sovereignty issue. it is not a total monitor eyes asian. -- monetization -- monotone safe -- monetization. it will be a big thing for day-to-day market players, but looking back, the bank in the future like a year later, we will minded that today's the day for a time of change. that is interesting, right? haidi: the tide has changed, but do the inflation futures look

different? we had seven months of consumer prices falling again. yes if you strip out volatile energy prices you see a marginal gain. it is not exactly a lack of reflation efforts is really taking off in japan, right? >> of course. that is a very good point. we do not expect any rate hikes at any point in the future. even the fed has said they will not raise interest rates up until the end of 2023. the boj will have a very limited chance to raise interest rates, in 2024 may be. interest rates will be straightforward. there is a chance for the boj to cut rates if the pandemic shock coming back again. in the meantime, they would like to reduce the pace of the buying

operation. two things going on, the purchases and interest rates policy. haidi: before we go, i am keen to get your view on the upcoming tokyo olympics games. g expect much of an economic benefit given we are likely to see borders continue to be closed? >> of course if no audience games, or there'll be very limited number of people coming into japan. it is very difficult for us to say. even if tourism picks up with the olympic games. we have to actually slightly lower our expectations. we had expected more people coming to japan for the olympic games. that is on the downside of things on the economic forecast.

in the meantime, if the olympic games are being held, even without a big audience, that is a sign the economy is going through the pandemic related recession. people's confidence may improve in a situation where the olympic games are being held. that would have a positive impact. many people now have big savings. even though direct impact of not having a big olympic games is smaller, i would say that consumption will still be there. haidi: thank you very much for your time today. we will be live in hong kong and singapore for the credit suisse asian investment content --

conference next week. do not miss our exclusive coverage on monday. shery: you can also turn to your bluebird for more on the boj policy review for later today. this is bloomberg. ♪

>> china u.s. relations have met

unprecedented difficulties. it hurts the interests of people from both nations. and world peace and development. it should not continue. >> i hope this conversation would be one carried out with confidence on both sides. not lectures or long, winding statements. >> the u.s. itself does not represent international public opinion. neither does the western world. >> the alternative to a world -- a rules-based order is a world in which my is right and winners take all. that would be a far more violent and unstable world. >> with the wisdom of chinese people, there is no way to strangle the chinese people. shery: top u.s. and chinese officials trading barbs there in their first u.s. meeting since biden took office. took this time to carry out the

trials of two canadians zero been detained for two years now. you're watching the intermedia people's court in china. those two canadians were accused of violating national security laws and were detained shortly after the december 20 18th arrest of the huawei executive. if they are convicted of violations under some specific sections of that law, they could face between a 10 years and the in prison. the other canadians trial is expected to start on monday. let's turn to vonnie quinn with the first word headlines. >> north korea has ruled out further talks with the u.s. for now, with a senior diplomat saying washington's newest overtures in the past month right track. officials say the u.s. is not ready to accept new change and new times, according to a report

by north korean state media. the comets came -- comments came during a u.s. the visit to seoul. new sanctions to block the completion of a russian pipeline. washington is concerned this will give the kremlin more leverage in the region. this could target the parent company or other firms providing materials. new zealand is considering limiting maxed -- mask tourism to preserve its image. big changes are needed to stop damage to the environment and key attractions. the industry has been battered during the pandemic, with income from foreign visitors falling 67% amid border closures. 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.

>> the straw was called safe and effective. let's look at bloomberg health care journalist michelle? i'm wondering the reversal, what has changed? >> we now have much more information about the result of the vaccinations, the side effects that have emerged in the 11 million people were given the astrazeneca vaccine. in millions others elsewhere in the world. we know the number of clots that have occurred are within the scope of what you would expect to happen naturally. they are looking very specifically at one type of blood clot that can occur rarely in people's brains. in this particular case a founder five cases out of 11 million people. we are talking about a very rare side effect. it shows you the details to which they are going to look

through every single piece of data and make sure this vaccine was not causing untoward risk. you have to remember the virus itself is still infecting and killing many thousands of people every day. the risk-benefit ratio, the ema saying it is in favor of using the vaccine. shery: president biden sending a few million doses to both mexico and canada of the astrazeneca shots at a time when we are making pretty good progress in inoculations here. >> the u.s., president biden has said today he expects tomorrow he will have met his goal of 100 million doses in the first hundred days of his administration. we are at over a hundred 15 million doses now. there were 16 million that had been given when he was inaugurated. he has reach this goal about six weeks ahead of time. we are currently vaccinating about 2.7 million people a day in the u.s. at that pace we

expect it to increase from here. many states are opening it up so people will be able to be vaccinated if they are aged 16 or older, particularly if they have medical conditions. this is happening at a quick pace in the u.s. shery: michelle cortez there. be sure to tune into bloomberg radio to hear more. broadcasting live from our studio in hong kong, listen via the app, radio plus, or bloombergradio.com. closing more ahead. stay with us. -- plenty more ahead. stay with us. ♪

haidi: goldman sachs is bringing in changes to make the workload more manageable for junior bankers. a group of new hires have a point about hundred hour weeks on the job with not enough time to even eat or shower. tracy alloway joins us now. tracy, knowledge of these long hours and grueling lifework balance situations in the banking sector is not news, but these folks presented those grievances. >> this was the funny thing in an otherwise pretty dark story. the first year analysts, their jobs is to make presentations. so what that they do when they

wanted to make a point? they made a presentation. an 11 page slide deck with all of goldman branding on it, even a disclaimer, and ended the analysts did an informal survey of their working conditions and found on average they are working over 95 hours a week, they are sleeping five hours per night, and work it's quite dark are in some of the written, -- written comments. one anonymous to your banker saying their body physically hurts all the time. one saying they were not eating or showering because they were working around-the-clock. presentation also has suggestions on how to fix all of this. things like a maximum work schedule of 80 hours per week, which of course is still double a standard workweek. it also suggests enforcing this friday night 9:00 p.m. policy, this goldman specific rule they implement it last time working

conditions for interns came out. that was in 2013. shery: i am surprise these junior bankers went through all this trouble and really wonder if they were actually scared of any retaliation later from management. is there a change perhaps in the culture there? why are these analysts complaining when they knew what they were getting themselves into? >> like a lot of workplaces, there is a generational culture between younger millennials and older management who have had to go through this process already. i mentioned goldman's 9:00 p.m. policy. this came up again back in 2013 after a bank of america intern died. a lot of the change has to do with recruitment. in the aftermath of the 28 -- 2008 financial crisis when big banks were competing with silicon valley for town, that to make a career in banking more attractive. they cannot just say come here

and you will work as a junior analyst for two years and if you survive, maybe we'll make partner and make huge amounts of money. that path is probably less attractive to a younger workforce. it is also less viable even at goldman, where the partnership ranks have been shrinking in the new ceo david solomon has been cutting wages. the social pact of ruin your life for a few years in order for a shot of lots of money down the line, that has kind of broken. another thing happening is the covid crisis and the overall backdrop. people are working from home. i can many places, the line between work and time off are becoming much more blurred. deals are doing gangbusters at the moment. yes -- yields are doing gangbusters at the moment. shery: tracy alloway there. let's get a quick check at the latest business headlines. jeffries's approach -- is

showing appreciation for its junior management including pellets and bikes and apple products. the ceo said the gift would reward them for their hard work and sacrifice since the start of the pandemic. the rewards are not being given in response to recent reports. the hong kong billionaire posted its first annual profit decline since 2015. the net income felts when he 7% while total revenue dropped 8% last year. as coronavirus hammered its businesses spanning retail, property and sports. the company warned of uncertainty ahead but expects to rebound this year. haidi: new media voices are emerging in china even as beijing looks to strip away outlets from jack ma's alibaba. one of them that is most popular is chairman rabbit, who has 2

million fans on we chat. colin, tell us more about chairman rabbit and how he has managed to, i guess, keep his audience and stay on the good side of president g jinping yucca --? >> he is a harvard educated prince lang. they are drawn to him because these are people who are not fully persuaded by the accounts of the typical chinese state media. he writes on topics such as hong kong. he quits the protesters thereto ku klux klan members. he uses language that is more appealing to -- then the dryer state media presentation. haidi: houses a reflection of media overall in china? >> chairman rabbit was one of

the examples we have in the story. there are some others. the message here is that, even though restrictions and china get stricter and tighter by the day, there are still some space for these upstart media. there are caveats and conditions. they should amplify beijing's message. if they are trying to bring up talk at such as -- topics such as xinjian, they will probably find themselves reined in very quickly. ultimately, as we saw with jack ma earlier this week, beijing wants to keep control over the public discourse and while it is prepared to share some of that space with these upstarts, they also need to keep an eye on the fact that at the end of the day, it is central governments that will call the shots when it comes to media in china.

shery: we are half hour away from the openings of trade in china. let's ask sophie for what to watch. soph? >> keep an eye on chinese construction companies as one point -- one trillion yuan has been allocated on the new special bond quota. keep an eye on footwear suppliers. nike is impacted by a problems. oil prices are under pressure. the three state oil giants. let's do a quick check on how crude is trading right now in the asian session. we see downside pressure below $60 per barrel. brent is hovering around the $63 level. ubs saying that caution will underpin longer-term strength for the oil market. shery: we speak about foreign investment in china about the

latest on beijing's antimonopoly crocked and -- lockdown on the monopoly sector. that is it for daybreak asia. we look ahead to hong kong, beijing, -- hong kong, shanghai, and shenzhen. this is bloomberg. ♪

anchor: happy friday. welcome to bloomberg's -- bloomberg markets china open. i am tom mackenzie. >> counting down to the open. let's get your stories today. the first high-level u.s.-china talks of the biden era began with bickering and blame games. each side attacking the