>> very good morning, welcome to "bloomberg daybreak: australia." we are counting down to asia's major market owned being -- market open. >> good evening, i'm shery ahn. these are your top stories. u.s. chalks -- stocks trade from record highs. investors are awaiting more earnings and incoming data later this week. president xi jinping gets set

for his keynote speech at the forum. it's an opportunity for beijing to lure foreign investors and speak about how it's open for business. weighing a $7 billion financing deal to overhaul the flagship -- and to stop plans for that super league. we are seeing u.s. futures holding steady after the s&p 500 posted its biggest drop in almost four weeks. small caps underperformed with more than three quarters of the stocks in the brussel 2000 closing lower. we do have the dollar having a losing streak since november. the wti is rebounding from those losses that we saw her earlier in the session. it's the one-year anniversary when wti futures turned negative. opec-plus discussing downgrading next week's meeting, potentially a sign that they could be sticking with signs to gradually

revive oil production. that how we are setting up across asia. here is sophie kamaruddin in hong kong. sophie: after a five-day gain for asian stocks, we do have futures mostly in the red. this is increasing in sections that raises a concern. india is lowering the vaccine age. the indian drugmaker is looking to double the vaccine capacity this year. and also boosting manufacturing production. we are keeping an eye on minors, with rio tinto production up. we had the first quarter update from bali. estimates will likely provide a lift to iron ore prices. we are keep an eye on asian prices, this ahead of the first unveiling later this tuesday. let's look at the board for a check on currencies and the asian session. checking in on the yen. we are seeing a truck towards at 108 handle after the dollar though to a six-week low in the aussie dollar trading around a

one month high. we also have a division from indonesia and china. with the offshore u.n. holding -- yuan holding, we do see it at a 60 level. standard chartered with consolidation ahead with inflows to china. haidi: we are staying with china. china's president will be delivering a virtual keynote speech at the forum later on tuesday. he is expected to touch on the risks and challenges that the world is facing. what solutions his country is offering. this comes as business leaders have addressed everything from monetary inflows to 5g. let's bring in our chief north asia correspondent david ingle. set the stage for us. what is the president likely to touch on? -- stephen: last year was the

first time in 17 years i had not attended because of the coronavirus outbreak. i'm not there again this year, obviously because it's semi-virtual and semi-live. it is an opportunity for china to show that they are open for business, and they are welcoming international opinions in international inflows. when xi jinping speaks every year or two, they alternate between xi jinping giving the opening keynote in the premier. when xi jinping speaks, when he is there, it usually attracts much bigger names, including the chairman of big own state enterprises, and also westerners. steve schwarzman of blackstone and bill gates, elon musk, and they are all tightly wound into a small venue where you rub shoulders with these people. it's a great place to figure out what's happening in china and what the main goals are. so when you get that speech

later this morning, i believe it's 9:30 this morning local time from xi jinping, all years will be on any signal from the leader anna where they are going to be tackling the different risks in the chinese economy, as well as china's role globally. we all know that xi jinping, his main mantra is about containing risks. obviously. what's happening with the big platform companies like alibaba and that crackdown. but also the financial risks with aunt -- ant. in the vice chairman of the securities watchdog gave a speech yesterday talking about the risk of inflows of brokers backed by hedge funds he was concerned large market moves by hedge funds into china will be watched very closely. he said again, he added that caveat that foreign funds, whether it's pension funds, mutual funds, insurance funds

are all welcome in china. but those risky moves by hedge funds he was alluding to, would have to be watched very closely. holding about 5% of domestic a-shares and chinese stocks, they would like to see that more, but they want to contain those risks. haidi: this is coming at a time when china is facing western pressure from human rights to cybersecurity. things got a bit heated about criticism on belt and road. stephen: that's right. the last time -- two years ago i mounted -- i moderated a panel and he opened up. he is an interesting individual. in this time on the panel, i believe it was yesterday, he took exception to global criticism that the belt and road initiative by china, which has lost steam through the global slowdown because of her pandemic

and also concerns about debt loads in this developing country, he dismissed the concerns that china was creating debt traps in the developing countries. he said this was a supply and demand initiative. there is excess capacity in certain industries in china that could be put to great use in developing nations. and he said the banks of china are using market practices in assessing the risks in these places, and he said it's bottom-up not top-down. and he criticized the palit -- politicization of the issue by the national governments. shery: stephen engle in hong kong with the latest on that forum. let's now get over to vonnie quinn with the first word headlines. >> u.s. secretary of state antony blinken has warned the u.s. is falling behind china in the race to shape the world's green future. speaking ahead of president biden's china summit later this week, he said the u.s. needs to

seize opportunities created by climate change to create jobs and export american values. he also pointed out china's dominance in green energy production. >> china is the largest producer and exporter in solar panels. electric vehicles, wind turbines. it holds nearly one third of the world's renewable energy patents. we don't catch up, america will miss the chance to shape the world's climate future in a way that reflects our interest. and we will lose out on countless jobs for the american people. >> philippines president said that charging china and the south china sea would lead to violence, and he would only do so if beijing drills for oil. it was a mark on the issue since hundreds of chinese investors were spotted in the waters last month. philippine businesses called on china to withdraw, calling it undisputed territory belonging to the philippines. the philippines has authorized

the emergency use of johnson & johnson single use coronavirus vaccine after the u.s. suspended it. the country may buy up to 10 million doses of j&j as it tries to increase the pace of inoculation. according to data, the philippines has ministered 0.2 doses for 100 people. that's compared to 2.4 in indonesia and 1.1 in malaysia. india imposed a weeklong lockdown in new delhi to prevent the collapse of its health system, authorities say has been pushed to the brink due to a surge in covid cases. in an effort to hold the crisis, the company says expanding vaccinations will go to all adults starting may 1. india has administered 120 million doses to its populations of nearly 1.4 billion people. global news, 24 hours a day, on air, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: still ahead, new viruses

threatening to derail the progress on vaccines. we will discuss with the cofounder and director. coming up next, it has been a year since crude oil hit negative territory. we have more on the outlook of the sector. tracy mcmillan is with us next. this is bloomberg. ♪

haidi: fallout at credit suisse. the bank heads are leaving. the departure comes before the new chairman arrives. bloomberg su keenan joins us with the latest executive departures we are hearing about. su: the departures are the latest in a series of sweeping changes that credit suisse in which the bank had lost almost 5

billion from the implosion. and what we know, according to a company memo is that co-heads of the prime brokerage unit are said to step down immediately, but they will stay on until mid-may to allow an orderly transition. credit suisse previously reported at least seven senior executives, including the head of investment banking and chief risk officer had departed as part of some big changes to address risk management at the bank. the bank is grappling with how much its leadership team at the new, and how it controlled quiet risk. credit suisse has recently been sued by a small pension fund that alleges the bank misled investors and left high-risk clients take on too much leverage. shery: the banks incoming chair,

he's got his work cut out for him? su: he is the outgoing lloyd's chief executive and joins credit suisse and its new chair in may, of course taking on major challenges, not the least of which is the debacle. also, he tells bloomberg that he believes he should continue to face new challenges and looks forward to the job. let's listen. antonio: this is a great country, credit suisse has a great franchise. before i'm looking to help them with the board and executive team, to make it better and better. su: he arrives at credit suisse as the bank faces not only a crisis of confidence, it's had a series of risk-management debacles. the latest of which are green fell in rk goes, in addition to the twin departures just announced, there was a series of executives replacements.

there have been sweeping changes in the way the bank deals with risk or hedge fund clients. evidence have been cut and buybacks suspended, and analysts on wall street see further losses and potential fines down the road, but the bank is clearly welcoming a fresh leadership in the coming days. back to you. shery: bloomberg su keenan with the latest on credit suisse. it has been exactly one year since wti futures turned negative. the rush to sell these contracts came as investors realized they could be stuck with the commodity with nowhere to put it. for more on oil and other assets, let's bring in tracie mcmillon from wells fargo investment institute. always great to have you with us. this gtv chart on the bloomberg showing that historic route that we saw in oil last year. but since then a lot of things have changed. we are talking about u.s. and global energy stocks up almost

40%. brent up over 140 percent. opec cutting production. given the rally that we have seen so far, is there still room for more gains? tracie: you are right. one year ago it was a -$40 per barrel on the oil price. and we really saw that as a washout event. and like you said, a lot of commodities since then are up double digits and even triple digits. but we do think there is room for their commodities complex as a whole to move higher. with oil at $63 a barrel, we think that could be near its top. we have a $50 to $60 target for oil for year end, but some of the other commodities we think are interesting, we like agricultural commodities and even precious metals. we think at these prices, gold is attractive. we have a 2100 to $2200 price

target on go. right now we are at about 1771. in going forward, that could be a good hedge if the equity markets get volatile. shery: we are seeing a little bit of that volatility already. we have seen it up across the u.s. was this inevitable, given the rally and how far we have come this year already? tracie: we think it was. when we look back at year two of bull markets, what we find, historically, is that most bull markets in year two were up. since 1967, every second year the bull market has been higher. and on average, it has been up 12.7%. but, the other side of that is

that it has been more volatile in year two. each of those years we have seen nearly a 10% correction. so, some volatility here is probably to be expected, but we would use it as a buying opportunity. haidi: i'm looking at these numbers when it comes to short interest in the s&p 500 members, it's about 1.6 percent, which is close to a 20 year low, at least a 17 year low. does this suggest that there is euphoria. in for the reddit phenomenon, that no investor wants to push against the tide. tracie: investors are looking at the reopening, looking at all of the stimulus, low interest rates, sat on the sidelines and saying, this is a great time to be invested in equities, not as good a time to be investing in bonds. so more interest in equities,

and like you said, just short investors being worried about the retail investors coming in and thwarting any gains that they might make from shortselling. haidi: does that mean earnings can still impress, or has it really been adequately priced in? tracie: we think earnings can still impress from here, and we do still see upside potential, but we say broad and out your closure, beyond a u.s. large-cap. we are looking at small caps as a potential area for double-digit upside, and also emerging-market as an area for potential double-digit upside. haidi: always great to have you with us. tracie mcmillon head of global asset allocation strategy at wells fargo investment institute. we have our exclusive interview with the founder and chairman

giving his outlook for china's ev sector. this is bloomberg. ♪

haidi: the ev maker is confident on building on record sales momentum. the founder and chairman said the company's new family sedan model will drive explosive growth when released. he spoke to tom mackenzie at the shanghai auto show. >> i think that ev market this year, especially the smart ev's will see huge growth. i believe the smart ev sector will pose double-digit growth. and i expect to see the high-end smart ev's to grow significantly , and that's what we are working

towards. tom: you have had record fourth-quarter sales -- first-quarter sales. do you see that momentum continuing through the rest of the year? he: we broke our sales record in the first quarter. i believe we will keep the momentum for the rest of the year, especially as we start taking orders for our p5 model and the second quarter. we plan to release the model and the fourth quarter, and start delivering in the fourth quarter. we believe that p5 will help significantly raise our sales volume. tom: you have not announced the pricing for the p5, what does that tell us about the complexity of pricing the models now in an increasingly, somewhat say saturated market. he: i expect explosive sales growth for the p5. today in china, many automakers are setting a high-end price for the first product.

but i hope there are more good products at a mid-level price range to meet the bigger demand. tom: is this the year, 2021, when old car companies incumbents really start to make their mark when it comes to electric vehicles? he: recently, bmw has introduced a new ev. this is a very good start, but i think it will take at least four to five years before we can see the winner in this new smart ev market. tom: what do you make of companies like evergrande and huawei eric schultz me getting into the space -- and shall me getting into the space? he: it is not huawei, it is not any other company. what we want to do is to pursue huge innovation. we hope to be the explorer for the future of transportation. i hope we can provide strong

transportation such as driving and ask for the possibilities of flying cars and other transportation tools. i wanted to be different from all others. tom: is shortage having an impact on production? is production having to be slimmed down as a result of the shortage? he: our supply chain are working hard to keep up production from being impacted in a big way. so things can change very significantly. so keep working on stabilizing the situation. shery: the founder and chairman. the auto analysts now joins "daybreak asia" from hong kong. plus, we will hear from one of the biggest manufacturers of components for the transport industry. bmw and mercedes, it's chairman joins us exclusively. here's a check of the latest business flash headlines. toyota expects to have

sufficient chip supply through may. despite an industrywide shortage. at a top executive tells us the outlook it's cloudier moving into the northern hemisphere summer months. the japanese carmakers says consumer demands remain strong in production of toyota models will be less affected than rival brands. bmw reported a first-order profit jump driven by rebounding sales in all regions, but especially china. earnings rose to $2.7 billion, exceeding estimates. global delivery was boosted by demands for hybrid and electric vehicles. the results were in line with the bottom recovery for the global auto sector. victims reporting a rising profit last week. ibm delivered its first revenue gain in 11 quarters, beating estimates on demand for its cloud services. sales increased 1% to $17.7 billion in the quarter as the

ceo focused on ai in the cloud to revive growth since taking the helm a year ago. ibm says revenue that it acquired from $34 billion in 2019 gained 17% in the first quarter. this is what markets are looking at tonight. we are seeing qe stocks under a little bit of pressure. this after we saw the kiwi dollar seeing its biggest weekly gain since november, boosted by rising commodity prices. that's really in australia and new zealand. we are getting first-quarter cpi numbers on wednesday, from new zealand. watch out for that. when it comes to australia we have the rba's minutes to later. cindy futures are under a little bit of pressure. the aussie dollar has been supported by a rally in iron ore prices. up next, how football's biggest shakeup in decades as billionaire owners divided in

governments and federation scrambling to keep the super leak from happening. this is bloomberg. -- super league from happening. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings.

haidi: we do have breaking news crossing the bloomberg -- output coming at 786 .4 million tons. i are in or shipments, shipments are a little higher. rio tinto saying they see the or shipment volume between 325 to 340 million tons.

mind copper output coming just shy of expectations -- this comes after the second-biggest producer missed estimates. just another boost to the iron ore about -- iron or rally, which we are seeing. rio tinto, that first quarter production numbers pretty much in line with expectations. let's turn to vonnie quinn with the first word headlines. vonnie: the u.k. has added india to its travel ban list amid the emergent of a new variant that could be resistant to vaccines. anyone who doesn't have u.k. residency rights will be refused to enter britain if they have been to india in last 10 days. this came after prime mr. johnson canceled plans to visit

india. russia says it sputnik five covid vaccine is 97 point six percent effective according to an analysis of nearly 4 million russians who received both doses. that is higher than the rate highlighted in a trial published earlier this year. russia says it will be a peer-reviewed journal in may. alexey navalny -- even after being moved to a prison hospital. he refused food offered by staff but authorities stated he is in satisfactory conditions. novell knee aides warned that he was days from death. the u.s. had said russia would suffer consequences if he does die. the jury has retired to consider its verdict in a trial against

derek chauvin, who is accused of killing george floyd. the defense contends he died of underlying heart disease, and that the officer was carrying out his duties. 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'm vonnie quinn. this is bloomberg. haidi: the asia trading day in hong kong -- quite higher on monday as the daily caseload for virus there. so what are they saying now? >> we did see thailand's daily case after topping 1700 on sunday. sydney saying near-term pressure could see the s&p index move to the 1500 level, so there is a rotation into energy, health

care and consumer finance. vaccine rollout plans remain unclear. nonetheless, the index in thailand climbing to 1600. shery: we have seen a rally when it comes to emerging-market assets and we have the likes of morgan stanley and goldman sachs being more cautious about emfs. why is blackrock favoring them now? >> after a choppy first quarter, they see signs of a turnaround. they expect a dollar rally will pause as markets consider the broadening of a reopening. staying overweight on asia and with the economic rebounds seem

to be delayed and not derailed. vaccinations remain a key headwind, otherwise they are favoring the space. shery: let's make a u-turn and talk about sports -- i think we do have breaking news. mate one raising 10 billion dollars in stocks and convertible bonds -- we had seen earlier from data compiled by bloomberg that a chinese delivery giant is seeking $10 billion as they double down in newer areas like online groceries. we are finally seeing confirmation, now raising $10 billion in stocks. we will have more on this story

but let's make that you turn into sports. european soccer's governing body is in discussion for a $7.2 billion financing package to overhaul its flagship tournament and stop plans for a breakaway super league. i know nothing about european soccer. explain to me why this is so important. jason: it's a fascinating story and it has been on the bloomberg all day. it's fascinating because this has to do with money. you can set aside everything you do or don't know about sports. this is the richest team in sports trying to get richer. what it is about is some notable teams that people have heard of, arsenal, liverpool, getting together with some of the big

european clubs, most notably here in spain and italy saying we want to form a new super league and the existing infrastructure, the champions league, they are saying no, we have an existing structure and i have to tell you, fans and politicians are up in arms about this. haidi: particularly when you are talking about the most richly priced sports in the world. what does it mean for some of the billionaire owners for those who may not end up in the league? jason: that's a great question because you have billionaires like john henry who owns the red sox -- they own teams that would be in the super league, but on the others, you have others, you

have josh harris, well known as one of the cofounders of apollo. they are sort of the odd man out and they stand to lose revenue if in fact this super league goes forward. they are on the outside looking in and there is a lot of money changing hands. jp morgan is the bank in the midst of this, so there is an interesting wall street angle as well. haidi: jason kelly with a huge stray there. we will get more on that, but coming up next, we have seen a new virus strain threatened to derail the progress on vaccines. robert gallo is with us, next. this is bloomberg. ♪

haidi: as we have learned, viruses are known to mutate. that includes the coronavirus that has caused the global pandemic. three variants have emerged, in the u.k., south africa and brazil and they have caused concern as they start to spread worldwide. we are joined now by the director of the university of maryland institute of virology.

always great to have you with us. even in a situation where we are getting new variants, some of them more serious and contagious as well, we know the antibodies for the vaccine start to drop off after three months. do people lose their immunity after a certain time? dr. gallo: i'm quite sure people can get reinfected. if you have been infected once, it doesn't mean you're not going to get infection. we have two separate that from considerations about the vaccine. vaccines are much more powerful, specific immune responses that interfere with the virus. the real question is will the vaccine protect against all variants? for now, at least a few of the vaccines are able to protect against with high percentage against so far all of the variants.

some vaccines are not doing so well. you probably want to know about therapy, will therapy be as effective? the biggest therapy we need has to do with anti-inflammatory agents that occur later after infection, particularly the older, that cause hospitalizations and would be responsible for death. those things are really where you need the proper therapy. at the begin, the antiviral therapy has lagged behind. but there is no doubt -- can you hear me? i've lost it. haidi: we have you. dr. gallo: i lost the picture. i didn't swear. the variants of the vaccine will not lead to inflammatory changes

that will not have the therapy for. it won't matter. what you are really worried about his loss of therapy for the later stages when people are really sick and don't want good therapy. that's not going to happen. but the variants may infect better, they do, they may replicate more and spread more and you may get a higher incidence of what looks to be especially bad news, while vaccines are occurring in getting more infections. one can safely predict this will come down as well, but it is the disease you will be protected against and i don't care what the variant is, if we had good anti-inflammatory therapy. i'm not really yet worried, but

you are right that the immune response does not last long time. some of us are addicted that as soon as we know this was a coronavirus and you look to see how previous coronavirus's behave and the nature of this protein, which is a structure that leads to antibodies that don't last that long. so you could say the vaccines will probably last well for approximately seven months and then it will likely require a boost. that is what i believe. haidi: in terms of the timing, you have people who have been vaccinated and then some months later, we are still seeing new waves of the virus. does that boost come with the existing vaccine or would they be using a different type of vaccine? dr. gallo: it could be either one. it will likely be with the existing vaccine which does need to be boosted after about seven

months. so we can expect that even if there were no variants because the antibodies will only last so long. however, if variants emergencies vaccines are not doing well, a particular type of vaccine that you know well, the messenger rna vaccines are easy to make. the breakthrough is the fatty substance that covers the messenger rna to protect it. i thought this was not going to be possible because messenger rna molecules really degrade easily. but people worked on finding mechanisms that allow fusion to the cell membranes and the messenger rna gets into ourselves. if you have a new variant, the current vaccines are not doing well against it, it's easy to change the sequence of the messenger and make a new vaccine and that will happen if needed. shery: that's all great, but the problem is also the

distribution, especially to really remote areas in developing nations. let me ask you a personal question because my family lives in bolivia and they have no access to any vaccine, perhaps chinese or russian. if they were to get the chinese vaccine and this question comes from my own mother, can they get a chinese vaccine now and then a few months, if they have access to a messenger vaccine, the likes of pfizer or moderna, get a different vaccine or is there a risk? dr. gallo: there should be no risk. you can mix the vaccines, at least theoretically. there should be no problem with that. whether it is sputnik from russia or one of the sinovac's vaccines or other kinds of vaccines coming from china, you would want to know the exact vaccine that you took just for efficacy. the current vaccines coming out

of the united states have been very effective and if you can get that, it is ideal. there's essentially no toxicity. but not everybody in the united states is getting vaccinated. i have people in the mid to late 50's that have not been vaccinated yet and where they live, it is not the same. in michigan, i was told by a colleague, there was excess vaccine. they can't give it away fast enough. in new york, have plentiful vaccine right now, but in our washington and baltimore area, there are areas with serious problems, particularly in maryland, or we don't have enough vaccines and are still waiting. shery: to your point, given the lack of vaccines, we have had johnson & johnson paused and we are talking about six very rare cases out of 6.8 million people

vaccinated. is it worth pausing? dr. gallo: i think so. it is unusual and there is a reason that could happen. you could say intelligently that after three weeks or two weeks -- i don't remember the exact detail, but i think three weeks, but the antibodies may have because the platelets to stick together. at the same time, the number of places free to circulate goes down and you could even get a bleeding disorder. if you knew you could figure this out pretty quickly, and i think they probably did, it's certainly worth the pause. we cannot cry over spilled milk. but i would have agreed with

their decision, yes. haidi: do you feel like parts of the world, where we see half the population vaccinated, there is a lot of complacency with people not wanting to wear masks or socially distance, gatherings starting to happen again? dr. gallo: yes, you are right. that's definitely the case. there is a lot of people who just can't wait to freely travel . i have the greatest temptation, but we have to be sensible. there are still very infectious viruses and remember the vaccine doesn't necessarily protect against infection. in fact, it seems it does not. it protects against serious infection and disease. the vaccine can circulate -- it gets spread to someone here has not been vaccinated. some of the variants are more

infectious and people are getting infected because of that. and because of what you just said -- people feel i'm vaccinated and it's safe now and go about things easily. we are not stepping into this -- we never have to go through what some people who lockdown went through like they did in korea or china. you think you know what quarantine means -- and ancient latin word and they applied it when they put people on an island for 40 days. they were in contact with new ports. if you brought something back to the city of venice, they were quarantined in the boat and anyone who is sick was put on an island and it was quarantine. 40 days. the chinese did it for two weeks. you had people going to hotels and staying for two weeks to be sure they were not spreading the

virus and cities were locked down. we are not used to that. asia has more experience with those kinds of things and can demand that easier. americans are proud and strong with their freedom and so on, but this is a different kettle of fish and we need to be really careful and we are not there yet . i believe we could get there this year, but it's a belief right now. shery: as always, it's a pleasure to have you with us. the director of university of maryland school of virology. still ahead, the hong kong start up a digital passport. the ceo speaks to us exclusively later. and we hear from the world's largest hotel franchising company -- the president for wyndham hotel and resorts joins us shortly after that. haidi: let's take a look ahead

at the australian and new zealand day. big guys on the economic agenda across asia today. we look for more nuance for what they look for the outlook to be. we also continue to watch rio tinto after their first quarter production numbers -- there iron ore operations pre-much met estimates. new zealand saying it is opposed to the move to -- we have more on that story just ahead. this is bloomberg. ♪

haidi: we saw the tech sector dragging u.s. stocks down overnight. asia stocks, sydney futures off by .5% but still that market is close to record highs with a 10 year yield holding steady when it comes to us trillion. nikkei futures looking pretty flat to lower. shery: new zealand is signaling its opposition to the sharing

alliance, taking the -- new zealand previously refused to sign statements criticizing china -- what is this about? is it a sign of a split in that alliance? guest: outwardly it does have that appearance but it's not the way the new zealand foreign minister is presenting it. they are concerned they are expanding above intelligence sharing and surveillance. the u.s., china and australia put out a joint statement on china's treatment of its weaker minorities in hong kong. new zealand has not signed those. new zealand would prefer to raise its concerns privately with china. it's more predictable diplomatic approach with dialogue. shery: china is new zealand's largest trading partner by far. how does that factor into the

equation? paul: trade with china is worth 18.6 billion more than the next two trading partners combined, which are the allies, the united states and australia. but new zealand has issued public criticisms of china & a joint statement with australia which welcomed u.s. sanctions on china. they said it was clear evidence of abuses of the uighurs and called for you and access to the region. they are saying that china has a role to play in the recovery of the pacific and urge it to contribute to multilateral programs rather than just financing loans. it can be seen through this multilateral approach but you can see the fine line the country is having to walk to avoid getting on offsides of its allies. shery: daybreak asia is up next.

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haidi: good morning. we are counting down to asia's major market open. shery: welcome to daybreak asia. asian stocks -- in the u.s., text daca -- tech shares led the way down. the chinese president is hours away from addressing the form, addressing challenges for the