haidi: good morning and welcome to "daybreak: australia." we are counting down to the asian market open. shery: i am shery ahn. haidi: asian stocks set for a higher open. a dip in treasury yields is providing a tailwind for equities. the hong kong listing could encourage more chinese

companies. we will be hearing exclusively from robert lee. the u.s., u.k., and e.u. sanctioned china over alleged human rights abuses. beijing hits back with bands of its own. shery: we saw u.s. stocks gaining with tech leading the gains. investors focused on congressional testimony by chair powell and secretary yellen. we saw small drops in treasury yields helping to provide the tailwind for risk. the 10 year yield falling from the 14-month high. we also have the dollar falling. futures unchanged at the moment. let's see how asian markets are shaping up. haidi: we are eyeing a slightly higher open on the back of the tailwind we saw equities in the u.s. get from the reaction in treasury yields. kiwi stocks up .7%.

data coming out later today including home prices. futures pointing a little bit lower, .3% for australian contracts. we are also looking ahead when it comes to developments with the dollar given pressure short-term for the aussie recently. it looks like we will see more of a positive open at the start of trading in korea. baidu will make its hong kong debut in just a few hours. let's start off with the demand we are seeing for this listing. >> it has been pretty solid. they have been oversubscribed about 110 times for the secondary listing in hong kong. they have raised about $3.1 billion u.s.

shares in hong kong are priced at 200 $52 hong kong. already you have seen some upside gains of about 2%. as you say, this is in the context of a number of significant homecomings back to the hong kong market. this one from baidu is expected to be one of the largest listings and ipo's in hong kong this year. the market is not as high as it was. it has come off the record highs. in terms of whether the demand will be reflected in the share price offering at 9:30 local time is one to watch, but the demand has been there. if this is successful with baidu, you may see tencent music and other u.s.-listed chinese companies looking to come back to hong kong as well. shery: we have seen baidu making the big push into artificial intelligence. how successful has that been? >> they are now starting to see

the fruits of those investments. they have been investing in artificial intelligence for about 10 years. specifically, things like chips but smart devices as well, cloud services. with cloud services and smart devices, they have seen double-digit growth in revenues. in terms of smart speakers, they have more than 20% market share here. it is starting to bear fruit. they also have a chips unit, the ai chips unit that has raised approximately $230 million u.s. there is some speculation as to whether they will look to spin that off at some point. they have partnered with one of the biggest and most successful private auto companies in china to build autonomous electric vehicles in the next few years. that is another part of the business they are very focused on. they have the apollo autonomous driving software. they are setting up partnerships and deals with other automakers in the chinese market. they are very focused on the prospects of autonomous driving.

still, revenue for the company, about 70% does come from ad revenue. that internet services part of the business, the app with the new service and livestreaming, they definitely want to see that revenue shift and have more coming in from things like the chips unit, autos, and smart devices. they say they are confident that will happen over the next few years. baidu has had a few misses in the past, including where it tried to do off-line to online with things like food delivery. that did not work out. they were accompanied slow to catch up with and invest in the jump from desktop to mobile about 15 years ago. it is definitely a test of baidu. at this point, they are starting to see the investments start to pay off. shery: tom mackenzie joining us from baidu technology park in beijing. tomo have an opportunity to ask all of those questions and talk with the baidu co-founder robin

lee at 11: 30 a.m. in sydney. the u.s., u.k., and canada have joined the european union in sanctioning china. the move drew an immediate reaction from beijing which retaliated with its own action against the e.u. let's get more from emily wilkins. is this all part of president biden's coalition, alliance, like-minded countries pushing back against china? >> this is definitely part of what that is. you saw president biden say he wants to strengthen his relationships with u.s. allies. that will be a key part of his foreign policy toward china. you are absolutely seen this come together with the u.s., u.k., canada, and the e.u. with

sanctions. for the e.u., this is the first time the block has imposed sanctions on china since the tiananmen square massacre. the u.s. and canada have mirrored the e.u.'s actions. these moves, week after the u.s. and china met in alaska for talks that wound up being fairly contentious in public. haidi: human rights was repeatedly addressed by antony blinken going into the talks. does this development make it even harder for beijing and washington to get back to the negotiating table when it comes to finding areas for compromise and collaboration? >> i don't think it necessarily makes it easier. but if you look at what the sanctions do, they will not impact china's economy or behavior. they are meant to send a message

that the international condemns china's human rights violations. these powerhouses in some capacity need to work together. you have seen the u.s. and china continue trade agreements and working on big picture items even as the past year you have seen the tit-for-tat blocking of sanctions and other smaller measures meant to chastise beijing to washington and washington to beijing. haidi: emily wilkins with the latest. let's get you to vonnie quinn with the first word headlines. vonnie: sources say the biden administration is considering as much as $3 trillion in measures for the next stimulus bill. that may include up to $400 million for green spending with infrastructure and climate change two of the key pillars in the massive follow-up to the pandemic bill earlier this month. the proposal is expected to be

presented to president joe biden this week. fed chairman jerome powell says the u.s. economy is still far from a full recovery but seems to be gathering steam. he told the house financial services committee millions of americans are still hurting. treasury secretary janet yellen will also face the committee this week. the ecb has finally delivered on its promise to increase bond buying to combat yields. policymakers vowed to significantly increase buying earlier this month amid the selloff but data has shown little pickup until now. we will get the redemption figures later tuesday. new zealand has announced measures to increase housing supply in a bid to tame surging prices. home prices surged more than 20% . the government is under pressure

to act as more first-time buyers and people on lower incomes are priced out of the market. more than 18,000 people in new south wales have been ordered to evacuate amid severe flooding across the state thousands more facing potential upheavals. another 15,000 people in affected areas may be ordered to evacuate tuesday. emergency responders have made 850 rescues in the last 24 hours. global news 24 hours a day on-air and on bloomberg quicktake. i am vonnie quinn. this is bloomberg. shery: we get the outlook on strategy later this hour. plus, an exclusive interview with the ceo of credit suisse about a push to get bankers back in the office and the outlook for inflation risk.

plenty more ahead. this is bloomberg. ♪

shery: the bond market remains in focus this week. our next guest says recent volatility is all about interest rates. joining us is the ubs managing director. great to have you with us. we had the disastrous seven-year auction a month ago. we have another $662 billion offering. what are you expecting? >> we will see the rates debate will continue. the fed chairman is doing a great job of trying to make sure everyone understands we are going to be patient. he and the fed will be patient with a little bit of a rate overshoot. but as we will see over the coming weeks and months that all of the comparisons we have, whether month over month, quarter over quarter, or year-over-year, will show the american economy is reheating. that will continue to create an

infatuation by investors with what is happening with inflation. shery: does that mean also higher yields and more pressure for tech stocks? >> we will see some volatility. today, we saw a little bit of that recede. we thought there was less inflationary pressure. we believe we are going to see in the near term continued inflationary pressure. as everyone gets back to work and we move things forward, we are going to get out and spend and consume. that is going to create some pressures. but in the long term, when we get through this reflation of the markets, we are going to settle back in somewhere close to the 2% range which is what the fed is saying it is accepting as a reasonable overshoot in the near term. haidi: i want to throw up this chat that goes to what you are saying. the nasdaq 100 and the u.s.

tenure correlation. we are looking at the deepest negative correlation relationships since 2016. this is the 40 days we are looking at, close to a 20 year low. what is the risk of a severe under shoot? what if this really is just a reflationary blip and we don't get to 2%? >> i think that under shoot is probably what the fed is really concerned about. they are talking about keeping rates at zero, holding down the short end of the curve for a while to make sure we get the economy back up and running. and we are seeing globally a diversions -- divergence. i think we will continue to see that story start and stop here in the u.s. right now, it is a beautiful spring day. and we are seeing going into spring break that we are probably going to have a new wave of covid crises in some

places in the u.s. as college students and kids get out. we are pent up and want to be together. so, we are going to see a challenge in the weeks and months ahead. it will be both inflationary and covid. both of these things will continue to be a challenge to us. haidi: is that one of the reasons you prefer asian equities to international? could you narrow it down for us in terms of what you are liking or constructive on? >> there are a couple of things to keep in mind. this volatility in the u.s. and globally is going to continue to play its way out. we at ubs do believe we are seeing this reversion. and so, those things that have been beaten down, commodity stocks, energy, those types of things are reflecting. they are starting -- wreath-laying -- reflating. we think there is more room for that to run. we like the asian equities,

especially the china markets. consumption is growing. mobility has increased quicker and faster. there have been fewer setbacks. as we begin to consume in the west in europe comes back online, consumption will drive materials and commodities and those types of things coming out of not only the developing but the emerging markets in europe as well as latin america. shery: what does it mean for cash? do you deploy it when there is volatility or hold onto it even the uncertainty? >> that is a great question. i think all of the central banks are sending the same question. they don't want us to sit on cash. if we do have inflation, they would rather see us stimulating the equity markets and putting it into the markets and letting it work. we have been seeing buying on dips. those on the sidelines

underweight the equity markets are doing two things. number one, they are looking at small caps. they are looking at value stocks. that trade is playing out fairly well. we saw this today. when there is a selloff, a step back, we are seeing some stepping back into technology and the things we know will be with us for the long-term. we are trying to get the cash off the sideline and get it to work. haidi: we really appreciate your time. we continue our coverage from the credit suisse asian investment conference. he sat down to discuss the return to offices as the vaccine rollout accelerates. he spoke about flexibility in the region. >> when it comes to our industry, banking, clearly, human interaction is critical, especially for credit suisse. we cater to the large corporate

entrepreneurs were a lot of discussion needs to be in person. we are encouraging our staff to work from home. at the same time, we want them to be meeting with clients and with themselves to come up with ideas. if you want the best ideas, you have to do it in person. a lot of execution can be done from home using zoom and that stuff. but i think you need to find the right balance. i think for every company, it is going to be different. >> what is the right balance? we heard from ubs, 60% in the office. how are you looking at it? >> for us, it is too early to sign up for a percentage. i think we will see significant numbers of persons working from home. we also have to figure out the right balance.

for us, it will depend on the clients. we are a very client focused firm. it is important we understand what the client needs. i think for us the good thing for credit suisse, we do have the ability to adapt. we have a lot of flexibility the way we manage our business here. i would like to make the decisions as we see economies open up slowly how clients react to it and so on. >> we talk about a changed environment. that includes the investment landscape as well. front and center is rising yields. what are you telling investors and what questions are you receiving? >> yields have been rising. i think that is a good sign there is confidence for a rebound.

you are seeing some predictions for growth this year. it is the fastest in recent history coming back from a big dip last year. we have to put that into the right perspective. i do think inflation will start picking up again. there is talk about one time inflation because there was adjustment from a lower base. >> they say two percent inflation by the end of the year. what are you looking at? >> i will leave it to them to come up with the right prediction. we advise clients to be mindful of the changes in the market. stock markets are at an all-time high in many places. at the same time, you will have quite a strong recovery in the

second half in many economies around the world. we are working closely with our clients to adjust the portfolio and investments as well. >> i want to touch on china, which is a key market for you. he has said he wants to triple the headcount in three years. does that include hong kong? what is the number right now? give us some perspective on that. >> i think the number is china excluding hong kong. as he mentioned, china is very important for us. we also have to remember we are starting from a lower base. >> is there a number you have right now currently? >> let's call it like he said. that is probably the right number for now.

it is the second largest economy in the world. it will open up more and more. it has been opening up the last couple of years. they have 51% now he mentioned. i mentioned we are going to try to get to 100% as soon as practical. we will invest in china. we are also investing in the rest of asia as well. i mentioned in our last interview topline growth for the region has been close to 34% last year. almost 20% of the group's revenue as a percentage of the group. this is where the group is counting on growth. haidi: that was helman sitohang speaking exclusively to bloomberg. bloomberg tv is the exclusive media partner for the annual conference. we have more interviews from the event coming up, including credit suisse's had a strategy

and the head of china technology research. you can get a roundup of the stories you need to know in today's edition of "daybreak" on your terminal. also available on the bloomberg app. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines this hour. he has unexpectedly left apollo months earlier than anticipated. the 69-year-old had planned to leave later this year amid scandal surrounding his ties with a convicted sex offender, jeffrey epstein. the former u.s. regulator will head the private equity firm. investors welcomed his departure was the stock raising its year to date estimates.

he has said they will try harder to make sure junior bankers get at least one day off a week. it comes less than a week after a group of analysts raised the alarm about increasing burnout among the group in a presentation that made the rounds on social media. a top u.s. cybersecurity official says microsoft exchange servers are still being compromised by hackers despite fixes applied weeks ago. he warned security patches applied after an attack does not enter hackers and virtually -- further measures are needed. microsoft blames china for a massive attack on its email servers earlier this month. coming up next, sources say the proposal is set to hit the president's desk this week. we have the details ahead. this is bloomberg. ♪

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the pace of vaccination gathers. high schools would reopen for in person attention -- attendance of the governor tweeted. bank of america is sounding the alarm of a surge in energy use involved in bitcoin production. it says, the power used for mining the digital token accounts for .4% of global energy consumption, comparable to many developed countries and rivals emissions from american airlines and conocophillips. bitcoin mining emissions have grown alongside the spike in its price rising 40 million tons over two years. australian prime minister scott morrison says a staff number involving quote disgusting and sickening behavior in parliament, has been sacked. allegations a group of male government staffers shared images and videos of sex acts for two years, the images reportedly included photos of

sex acts on the desk of a female lawmaker. approval for morrison's government felt a 30 month low in the latest news calls. cash fell to 830 month low in the latest news polls. -- approval felt 30 month low in latest polls. global news 24 hours a day on air and at bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. >> bloomberg economics and policy editor kathleen hays is here, and we have heard this bill back better could include everything from infrastructure, to climate change initiatives. what do we know so far? kathleen: joe biden been talking about following the virus leaf plant without long-term growth land. he is -- growth plan. he has expected to present next week and his team is working on it now. it looks like it will be a $3 trillion plan, to boost

long-term economic growth. it does come after a 1.9 between dollar virus relief plan. but this is the build better, how we are going to get the economy not where it was, but beyond where it was. here are the kinds of things expected. the key planks will be infrastructure spending, climate change. there is $400 billion being talked about for green spending. investment in human capital, tuition cuts for minorities, health care initiatives. the gop we read and here is more in favor of traditional spending on infrastructure, like funding for highways for example. democrats and the gop do seem to agree on one thing, spending money on u.s. technology, to boost competitiveness with china. mitch mcconnell, the leading republican senator, says he thinks bidens infrastructure plan could be a trojan horse for

massive tax hikes, so there will be a lot of partisan back-and-forth on this one. >> we know how republicans feel about that. tax the rich has been a rallying cry for long time. will this be component of fundraising going into the package? kathleen: i think it will be of theme we have heard on the campaign trail. it will continue as the plan comes out. bidens team will talk a lot about the poor got poorer to an extent. and there were windfalls to the wealthy. he already said in an interview with abc last week, the president, said people earning more than $400,000 per year can expect to pay more in taxes. this is probably a no-brainer, repeal portions of trumps 2017 tax cuts, those that favor higher income earners. boost income tax and capital gains tax rates.

what idea is to tax capital gains, a 20% rate now, to higher income tax rates. for wealthy people that would be like 39%. four state, remove the step up basis, it is used to reduce tax liabilities. and maybe set a minimum tax for larger companies. what is driving it is people are talking about a " case shaped -- "k-shaped" coverage with the richest adding wealth last year. a policy group in washington found in their research 80% of job losses during the pandemic had the lowest 25% of wage earners. the idea is, it is not that we are blaming wealthier people for what happened. but now, wealthier people able to keep working and did not lose their jobs, could invest in stocks, they have the wherewithal to pay more taxes, and help fund these programs, that will help long-term growth and boost the lower wage

earners, households that have not done as well. >> we will get more insights on what is happening with the economy. chair jay powell testifying to congress tuesday on the fed response to the pandemic. what are we expecting? kathleen: he is going to talk about the pandemic response by the fed. it has been extraordinary monetary stimulus. it has not let up. alongside him will be secretary-treasurer janet yellen, the former fed chair. she is saying go big, it is better to overdo than under do. jay powell will go out of his way not to say anything about what has been done with specifics of that 1.9 trillion are package, or what they should be doing or how much they should be spending on infrastructure of a climate change, this long-term economic plan the president and his team are developing. jay powell's remarks were released ahead of the testimony by the federal reserve earlier today. we do know powell is going to say, the economic recovery

continues, but it is far from done. in other words, we are not thinking about thinking about taking any stimulus away yet, that is what we heard in the meeting last week. more attention on the april 28 fomc meeting, but this will also be closely watched. haidi: our economic and policy editor, kathleen hays. astrazeneca's coronavirus vaccine fared better than expected and the u.s. clinical trial as decks back -- peace -- the end is air expected to seek emergency approval by fda. the review board for no safety concerns. a top executive spoke exclusively with bloomberg on the safety result. >> it is clear we have a vaccine highly effective, showing highest efficacy against severe disease and hospitalization and that is important for the united states and europe. let's not forget this virus is everywhere in the world. so, we are thrilled with the data. hopefully, it is the next step

for all of us, to combat this terrible pandemic in the world. >> you mentioned europe and doubts were raised around the efficacy of the vaccine and risk. in europe over the last several months, specifically on the risks around blood clotting, what if you learned in phase three trials here in america about that specific issue? >> as you can imagine, the data safety monitoring boards what would literally with a magnifying glass through every case and the very good news and it was in our press release, as they did not see any imbalance regarding thrombotic events in the vaccinated or nonvaccinated group, so that is a great signal. that builds on the very strong feedback we got last week, from the mhra in the u.k. and ema, saying the vaccine is highly effective and safe for use. it does not mean, course, as allies, for every product, every vaccine, we will clearly monitor every case we will get.

it is fair to say based on the current asia, the vaccine -- the current data, the vaccine is highly effective and very safe. >> there has been a difficult time recovering after in december the study results out of the astrazeneca vaccine, that was confusing. there were two groups and in one it showed a 90% efficacy rate and another 60% efficacy. how much do you think that color the view of people, versus some other policy era perhaps, on the part of politicians, who have not come out and endorsed a vaccine as much as you would have liked? >> i think that is noise the case. the speed in which we are developing vaccines is unprecedented. we are not cutting corners in any way or form. what we are learning, like for our other products as well. i think the importance of today is that, this trial has been done in a phenomenal way. more than 30,000 participants in

the united states, and peru and chile, showing an unprecedented efficacy, while the safety profile is extremely strong. hopefully what happened in the past is gone, that this will further boost the confidence in the vaccine. we are very confident. many reg later survey confident that the vaccine has been approved in's more than 70 countries in the world. -- many reg latest are very confident and the vaccine has been approved in over 70 countries in the world. the next step is approval for an emergency use authorization in the united states. we will apply for that the first half of april. that it is in their hands to make the final decision. to have >> blood clot development -- do you have a sense of how rare this blood clot about meant in the european union, do we have a handle on the scope of that? >> what we know it is very rare, very rare event, of course we're

looking into it. ema, mhra looking into it, and at this stage it is clear there is no clear relationship between the vaccine and the events. those events are, are also there and people without any vaccination. having said that, patient safety is always the number one priority for us, like it is for other manufacturers, so we take it very seriously. but let us not speculate and let us wait for the data. we will do a lot of studies to get a better view on it, as well as the ema and other regulators. and we need to see the data from other vaccines, to get a balanced view. it is too early to speculate about how many times it is occurring in the normal population. >> astrazeneca's leaking -- speaking with bloomberg. coming up, the outlook for em

asset as central banks enter an air of volatility. the head of emerging markets research and strategy with us next. this is bloomberg. ♪

♪ haidi: we are counting down to the open of trade here in sydney, another rainy day as

torrential rain continues over much of the state. we are due for a brief respite. asian stocks ready to follow u.s. stocks higher but australian contracts edging lower, .3% to the downside. shery: yes, let's turn to morning calls ahead of the asian trading day. looking at em sovereign fixed income. bbva saying quote, decent chance for more pain. they note the rising u.s. rates is a reflection of the ongoing inflation concerns, and that inflation concerns are in part of emerging markets, too. bbva says beyond inflation high inflation rates can with local rates on a short-term basis. > watching em currencies particularly as south african rand of the russian ruble. morgan stanley sink volatility in the turkish lira have a spillover effect on these two currencies, because they are more correlated during extreme moves. they also see others affected

while asia high beta effects will see less impact. emerging markets may be about to enter a fresh volatility. central banks are struggling to hold inflation and check while keeping growth fires burning. policymakers in thailand, south africa and mexico are meeting this week. joining us now is the credit agricole head of emerging markets research. i want to start with turkey and throw this chart this shows the extreme volatility we saw in the lira. when it comes to the turkish lira this is an idiosyncratic central bank story because of the volatility when it comes to personnel changes at the top. and the narrower areas of scope they have when it comes to policymaking. how much conversion do you see across the rest of em, particularly in asia? >> yes, on other emerging

markets, high yield including south african rand initially. in the open during asian hours we saw the south african rand and another but we think this lowering should be limited as turkey is a specific market with idiosyncratic factors, precarious liquidity ratios and lots of central bank independence, difficult political and geopolitical backdrop. we think the spillovers from turkey specifically should be limited. however there are other challenges ahead. the biggest factor, rising treasury yields. haidi: putting turkey aside, is there a good narrative around the fact we have central banks

in emerging markets having to walk this tight rope, we are seeing inflation bigger problem for them. but they still need to keep policy easy in order to keep the recovery going? >> yes, indeed. we are seeing a challenging backdrop for em. the tightening of financial conditions giving the rising u.s. treasury yields, also the withdrawal of fiscal and monetary support in china. they clearly conspired to create a more challenging set of conditions for em countries. to your point, we do expect, despite this backdrop, many em central banks, despite some of the hikes we have seen last week, we expect many central banks to opt in favor of accommodative monetary policy, to help their economies recover, and minimize the cost of debt servicing in some cases. but that means that will come at

the expense of weaker currencies. shery: one of those countries that hike rates was brazil last week. this gtv chart on the bloomberg shows it suffers from rising inflation pressures and we have seen today brazil continuing to suffer from the rising infections. 12 million covid-19 cases. everything looks grim for brazil, mounting public debt and virus cases, at the same time you have rising commodity prices. many em countries relying on oil and other exports. how do you factor those in? >> the overall situation is challenging. you have continued fiscal pressures, you have worsening pandemic, that is also increasing the political risk

with the president's narrow's -- bolsonaro's popularly falling and now the former president lula potentially back on the plug go stage. that creates -- on the political stage which creates rest going into the upcoming elections. as you point out what we saw last week was a strong action by the central bank, increasing interest rates but 75 basis points, or than the market expected, signaling also we will see another 75 basis points increase at the next meeting, likely. that is in addition to the increased intervention we saw in march. i would say in the picture the bright spot is the central bank, now back in the game and trying to get ahead of the curve, and tighten policy more now so it can do less later. that is a potentially supportive

factor for brazilian real. this is also adding to the fact that the brazilian real has adjusted quite a bit this year and over the past several years. so, despite the challenging backdrop for most em currencies i would expect the brazilian rialto be relatively more supportive because of the central bank. haidi: aside from leo syncretic cases in brazil or casey other individual problems is there a broader narrative about theme that would help us differentiate the theme between winners and losers among em's? >> that is right. i would say i would probably look for regional differentiation in that sense, would look for countries that have more proactive department models, but stronger macroeconomic fundamentals. on that front asia stands out

come and also some central european economies. for example poland is moving to structural current account surplus. countries with more resilient economic models and stronger macroeconomic fundamentals i would expect to be more resilient in the face of external pressures. shery: always a pleasure having you on credit agricole head of emerging markets research and strategy. coming up, new zealand takes aim at health prices which have surged 20% in the last year. this is bloomberg. ♪

♪ haidi: the new zealand government around -- announced measures to slow the runway housing market as housing prices surge 20% in february and new zealand houses are now the least affordable. paul allen is watching the story. this has been an ongoing problem for kiwi house prices as well as australian house prices. what are the changes we are seeing now? paul: this was a package of measures announced by the prime minister and finance minister. a $2.7 billion fund to unlock more land for development

intended to tackle the supply side of the problem. the policy will also and landlords'ability to claim interest on loans as a tax deduction and extend test for capital gains tax, the time in which profits on the cell of an investment property are taxable extended from 5-10 years -- from five to 10 years. auckland the fourth least affordable city in the world according to bloomberg data. wellington, the capital, has seen median house prices up 20% in one year. now even little towns 80 kilometers away from wellington, and there is nothing about the little town of 9000 people, the median price there now $700,000 nz ahlers -- dollars. these houses are not special, they are badly insulated fixer-upper's.

this will target the biggest share of buyers which are investors and dampen speculative demand. shery: holding down housing prices a tricky issue, will the change is make a difference? >> there is a long history of governments trying to tackle this long-standing problem in new zealand and failing to tame the property market. in 2018, the government announced key rebuilders intended to build 100,000 for the homes in 10 years. 40 seven homes got billed in six months and the policy mixed -- missed every deadline and got scrapped after 12 months. the new changes are another attempt to fix this problem. lemons are already signaling they are unhappy -- landlords are already signaling they are unhappy. saying every other investor gets tax deductions for interest on loans but not landlords now. they point out is still cheaper to rent than by in new zealand. so it will be interesting to see if their rental increases, as i large look to pass on the costs of these new policies -- as

landlords look to pass on cost of these new policies. haidi: we stay with australia at where the prime ministers scott morrison us began camera, addressing -- speaking and canberra, warning of flooding risk for australia, with much of new south wales and queensland engulfed in heavy rain. sydney expecting quite a bit today. he moved on to address the latest problematic incident when it comes to the toxic culture and sexual assault accusations. discussion of the report of lewd and sexual acts. there have been video circulated amongst local press that have been made public showing sex sex committed for up to two years including photos of them on the desk of a female lawmaker, but morrison saying he has welcome the spotlight on these disgraceful acts, after women marched across the country

saying, this clearly shows some women believe he has not heard. this follows the legend rape but parliament terri worker as well as the accusation of rape of the australian attorney general. more coming up. this is bloomberg. ♪

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♪ >> a very good morning. i am haidi stroud-watts. shery: i am shery ahn in new york. welcome to "daybreak asia." tech shares -- the trade. following treasury yields serve as a tailwind for equities. a hong kong listing could encourage more chinese tech