>> welcome to "bloomberg daybreak: australia." we are counting down to asia's major market open. shery: i'm shery ahn. haidi: these are our top stories. former minneapolis police officer derek chauvin is found guilty of murdering george floyd. democratic leaders and community leaders are welcoming the verdict that ignited a racial

reckoning in the u.s. the pandemic weighs on markets. asian stocks set to track a second day of declines. plus the pandemic boom comes to a halt for netflix. shares are tumbling well short of analyst estimates. shery: here is the picture on wall street. we are seeing u.s. features -- u.s. futures under a bit of pressure. energy and financials led the decline. smaller companies also led the declines with the russell 2000 falling more than three times as much as the s&p 500. investors a bit more cautious as earnings season cranks into high gear. the 10 year level dropping to the lowest in five weeks, so we have the dollar rising for the first time in seven sessions. we have breaking news at the moment. we are getting a few more headlines of teams withdrawing from the super league. arsenal is said to be

withdrawing from the super league, according to the associated press. liverpool also says the super league involvement has been discontinued. manchester united saying they won't be participating in the european super league. one person saying they will be withdrawing from the super league as planned. this coming after europe's proposed breakaway soccer league is now pushing the embattled project to the brink of collapse just days after its launch. chelsea has confirmed to be withdrawing from the project. executives behind the super league are holding crisis talks in an attempt to save the leak, this according to -- save the league, this according to people familiar with the matter. let's see how things are setting up for the asian session. here is sophie kamaruddin. sophie: we are looking at a risk off tone with the second day of losses potentially in asia. indian markets are headline --

are online. the country grapples with a second wave of the virus. nikkei futures fell more than 2% at one stage light monday. this as tokyo is set to declare a state of emergency. a decision could come as soon as thursday. south korea, as the daily camps count -- case count there is rising, they are said to be in talks with the u.s. on a vaccine deal. futures are pointing to future losses on the asx. switching at the board, iron ore futures in singapore staying above 180 dollars a ton this week. this as the anz says the short-term outlook for prices does look strong, but notes a pullback weighing on iron ore prices. a quick check on the aussie dollar ahead of retail sales data from dow number -- from

down under. reversing gains as full during oil weighed -- as faltering oil weighed along with the greenback. haidi: let's get back to our top story. derek chauvin, the former police officer who killed george floyd last year by kneeling on his neck for more than nine minutes has been convicted on all three counts. the verdict was released after less than 11 hours of deliberation and came 11 months after graphic footage of the killing went viral. it prompted nationwide protests that spread across the globe. president biden and the vice president are expected to speak imminently. in the meantime, let's bring out a court reporter. what is the reaction for a lot of people close to george floyd -- what is the reaction? for a lot of people close to george floyd, this is not justice served, but i step closer -- a step closer to the

right reaction. >> it is hard to understate how significant a setback this would have been for activists if this verdict went the other way. this was what they were looking for, guilty on all three counts. he faces potentially decades behind bars. the fact that it came so quickly, relatively speaking, after such a high-profile trial, about three weeks of testimony and 10.5 hours of deliberations, it has been pretty quick, with a signal right away to legal experts that it was guilty on all counts. the evidence was just so strong. shery: what is next for derek chauvin, especially when it comes to the potential prison sentence? erik: his lawyers are going to be moving quickly to put together some kind of appeal. yesterday, the closing arguments

in the case were made by both sides. at their conclusion, the defense signaled right away it was already looking ahead to an appeal. the defense lawyer writing out that the case with the trial was unfair because it was held in minneapolis. potentially the jury pool would have been biased against him. the defense tried to move the trial to another city, but the judge said no. comments were made recently at a protest by california congresswoman maxine waters, saying there should be confrontations between police and protesters, more confrontation if the verdict was not guilty. the defense saying that could have somehow tainted the jury, that they could have heard those comments during the trial and could have been swayed guilty to avoid further clashes in the country.

the defense moved for a mistrial, but the judge said no, though signaling grounds for an appeal. they are already looking ahead. haidi: what happens to derek chauvin in the meantime? he has been allowed on bail while all of this has been playing out. in terms of the sentencing, when we actually get there, there is a pretty big range as to what could be asked for. erik: yeah, that's true. they put him in handcuffs after the verdict was read and he has been taken to jail. he will be locked up for some time as they move toward sentencing. the maximum sentence versus the guidelines that are given is often different. for murder, the most serious charge, the maximum sentence is

40 years, but the sentencing guidelines are more around 12.5. there will be potentially a big range there. hard to know where the judge might come down on that, whether it could be deemed more serious given that he was a police officer, trained and entrusted to the public. a lot of things to be taken into consideration. shery: george floyd's death galvanized the black lives matter movement. it really put the focus on institutionalized racism. outside the court, what kind of changes could we see in america? erik: it potentially could be far-reaching. that is what a lot of people are looking for here. we have seen a lot of statements responding to the verdict, almost all of them coming from different law enforcement, civil rights groups praised the

verdict, but immediately said this problem is so serious in this country that we cannot lose sight of reforms that need to be made. during this trial, there were two more high-profile killings of black men my police, including one -- men by police, including one in the suburbs of minneapolis. another was a 13-year-old boy in chicago. it is clear that, despite the verdict, there are some serious concerns that still need to be addressed before the protests will stop. haidi: erik larson in minneapolis. joining us more for more reaction is representative mceachin williams. great to have you with us. as our correspondent just mentioned, even during the course of this trial, there were two more killings.

people were wondering into the verdict be delivered, do young black lives matter in america? how does this verdict change things? what needs to happen from here to get true healing in the u.s.? >> thank you for having this important discussion. as we waited for the verdict to come in, my heart was racing. i was not sure what was going to happen. after i heard the guilty verdict on all three counts, i as somewhat relieved -- was somewhat relieved, but it should not be relief for the baseline of justice in this country. this should be the norm. now we wait for the sentencing phase, because today was only the first step in justice in this country. there is so much to do still to address systemic racism, to address police brutality. we are done dying at the hands of police in this country. we have to get the george floyd justice in policing act passed so we can see true justice for

everyone in this country. not just one case, but we need systemic change in this country. haidi: for a lot of people that have been watching this and hoping for the right verdict, this is not the baseline, the baseline should be police brutality and racist motivations should not happen in the first place. do you think the justice in policing act will address that? what does this verdict at the potential legislative impact for policing -- impact mean for policing around the country? rep. williams: this verdict shows we are moving in the right direction. it puts the country on notice that it is time for us to change in a big way. systemic change needs to happen. accountability is what we are asking for. the george floyd justice in policing act addresses that. this is what my focus is moving forward, how do we get this passed through the u.s. senate so that regardless of the city,

regardless of the jury makeup, accountability is the norm in this country? shery: we are seeing live pictures of minneapolis, many people on the street, celebrating this verdict. we just had rev. al sharpton speaking in minneapolis after the verdict. tell us more about what changes you are seeing across the country. this was a verdict that will not only affect minnesota, but the rest of the world, especially when it comes to measures taken not only nationally, but within localities. rep. williams: it goes back to what we heard george floyd's daughter say this last year, my daddy changed the world. she is absolutely right,her daddy changed the world and we have to turn her family's pain into policy so that we can make progress for everyone in this country. i am forever hopeful our country will live up to its promise of

equality and justice for all. haidi: how much of that movement can be driven by businesses, corporations making themselves heard? rep. williams: we all have an obligation to make sure we are moving us one step closer to full equality, from the legislative branch to police policing themselves to corporations in this country, we all have an obligation to make sure we are living up the promise of this country. shery: congresswoman nikema williams. thank you for joining us, reacting to the verdict in the george floyd murder case. let's get over to vonnie quinn. vonnie: in other news, the tokyo governor says she wants the government to declare a state of emergency as soon as possible to curb the surge in covid-19 cases. infections in the city have jumped to levels not seen since january. the prime minister set out restrictions in tokyo, osaka,

and other regions this month to slow the spread ahead of the summer olympics. prime minister narendra modi is urging states to avoid lockdowns to avoid another hit to india's struggling economy. infections have forced the shutdowns of new delhi and mumbai. modi says states should only lockdown as a last resort. india has the world's fastest growing number of covid-19 cases, with more than 250,000 infections and 1700 deaths recorded tuesday. the european union's top diplomat says russia's military escalation on the border with ukraine has gone to 150,000 troops, the largest buildup ever on the frontier of both countries. he says that raises the possibility of further conflict. but the block is not discussing further sanctions. bloomberg spoke to ukraine's foreign minister, who called russia's buildup alarming. >> this is an escalation and i

am deeply concerned with the potential consequences of the escalation for my country. this is why we call on partners to stand by us not only in words, but also in deeds. vonnie: global news 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: next, netflix is plunging in extended trade along with its rivals after reporting growth that came in way below estimates. we break down the numbers. plus, the market outlook from someone named one of the best female portfolio managers of 2020 by forms. -- by forbes. this is bloomberg. ♪

shery: we have breaking news at the moment. a software firm is set to prize

ipo shares at $56 apiece. shareholders are seeking to raise as much as $1.3 billion from a u.s. ipo. we are hearing the shares have been marketed at $52 to $54 range that the company elevated. now we are hearing they are set to be pricing this ipo at $56 a share. they are selling about 9.4 million shares. shareholders, including their chairman are offering 14.5 million according to the company's filings. haidi: let's get to netflix. those shares tumbling after latest results show the evening of the lockdown taking a more severe toll than anticipated. was this the post lockdown boom starting to fade? >> that is exactly what it is. that is what the ceo said it was. these are consumers coming out of covid hibernation, but the

case of content being king. go back to a year ago when the pandemic hit. netflix had a lot of original content in the pipeline. they were able to rule out new original series that brought -- that big sure you see on the chart is q1 of 2020, when the global lockdowns happened. fast-forward to today, it is a double whammy. we are returning to work and school, spending less time streaming online, at least i am in the office, but also there is less new shows drawing in new consumers because the production had shut down in covid. this is not just in north america. they mentioned india, where they invested heavily in native-language content for that market. they are not able to make any new shows. it came in well below estimates. part of that is the difficulty of forecasting growth in a covid environment.

shery: our west coast reporter ed ludlow in san francisco. we will get you more on netflix in a few moments, but let's turn to the broader market. it was another day of volatility with rising virus cases around the world leading to renewed concern over the continued economic impact overshadowing some solid corporate results. let's bring in a senior research analyst. great to have you with us. is this volatility very much expected given the uncertainty, given that we have earnings season kicking into high gear? more retail investors are involved now. >> up to a quarter of trading volume right now is retail trade. that will add to some volatility, because that is more emotional, trader speaking. on the positive side, we have great vaccine rollouts happening. being halted.is we have

is that going to create more vaccine hesitancy? how much of that is going to impact longer-term the ability to reopen? the data is very mixed. in our heads, we are hoping a gun is going to go off ae pandemic is over, and i think it will be much more of a push-pul l. it will happen in increments. to me, the true moment the pandemic is over is when you are sitting next to someone in a restaurant and they cough and you don't flinch. shery: that is true. we are all careful at the moment about anyone sneezing, coughing around us. tell us about what was popular during the pandemic. we are still flinching, but the reopening is happening. we saw a hit taken by netflix given this reopening drive. julie: it is a tale of two

cities, where there will be trades that only really work in a pandemic or are really accelerated in the pandemic. netflix is a great example of that. there are other trades that benefited in the pandemic, but that will only accelerate their growth from here. i thinking like a company -- of a company like docusign, going to paperless transactions. we will not go the other way. that is being able to parse each one. haidi: there are experts, medical experts who say we are at the most dangerous time when it comes to the pandemic, when we have partial vaccine rolloutss, but these new variants and people getting complacent because we are tired of lockdowns around the world. is there a concern that as you see this rise in cases, that this will be an issue that will stick around for longer rather

than a magic fix, something that triggers a return to normal? julie: i think that is right. we can't just assume that if we reach the goals that we set out to be open back in the summer that it doesn't happen what is -- that it does not matter what is happening in india. we see this virus spreading all over the world. that has implications to resume in life as normal. i think we will be wearing masks longer than we think we are. we will talk about what happens once you have been vaccinated. do you need to re-up every six months? i am not very good at getting my flu shot, so how do we make sure people stay up with this as the variants go on? haidi: you point out about a quarter of the market is retail anticipation at the moment. do you expect that to pull back as part of that return to normal, or is that a fundamental

change as a result of the crazy year or so we have had in financial markets? julie: some of it will be intricate to the fact that casinos were closed and people were at home and stimulus checks were flowing. that created a perfect storm of people wading into the retail markets. some of that will maintain, that people will stay in the market, but over time people will be happy to spend their money elsewhere. what remains to be seen is how they trade and if they pursue things more in the mean stocks, or if we broadly diversified, which is my hope. haidi: julie biel, senior research analyst at kayne anderson energy. we have more ahead. this is bloomberg. ♪

haidi: we are just getting

quarterly numbers out from bhp. western australia iron ore shipments just under consensus at 66 million tons. estimates were for over city 7 million tons. total iron ore outputs are coming just shy of expectations. copper coming in a little bit higher than expectations. the petroleum output number a bit better than expected as well. bhp seeing the bull year, output between 245 million to 255 million tons, saying output should come shy of 260 million tons for the third quarter. we are seeing this friend of the big iron ore minors struggling to keep up with robust demand out of china. there had been operational issues as well as cyclone-related weather issues pushing down that output as well. shery: let's turn to live pictures from minneapolis. people on the streets after former police officer derek

chauvin was found guilty of killing george floyd. more than 3000 national guard troops were activated in fear of protests that have now turned into celebrations in minneapolis into celebrations in minneapolis reduce stress? shed pounds? do you want to flatten your stomach? do all that in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you maintain comfortable, correct form.

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vonnie: you are watching "bloomberg daybreak: australia." u.k. prime minister boris johnson says bertie must be ready for another wave of coronavirus infections later this year -- says britain must be ready for another wave of coronavirus infections later this year. johnson launched a new program to limit the impact of covid strains. he says while u.k. cases are falling, it is wrong to think the virus is going away. >> in this country, it's still firmly of the view that there will be another wave of covid at

some stage this year, and so we must as far as possible learn to live with this disease as we live with other diseases. vonnie: johnson & johnson will resume shipments of its covid vaccine to the european union after regulators say the benefits outweigh the risks. the regulators say blood should be listed as a very rare side effect, allowing governments to make their own decisions on use. that assessment echoed its review of astrazeneca's vaccine. the iranian president says negotiations on reviving the 2015 nuclear deal are 60% to 70% complete and could be resolved quickly if the u.s. acts with honesty. world powers concluded the latest round of talks in vienna and are planning to meet next week to fully restore the accord, which the u.s. abandoned in 2018. iran's lee negotiator says talks

are on track -- lead negotiator says talks are on track. global news 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bluebird. -- is bloomberg. haidi: president biden and vice president kamala harris are expected to speak imminently after the former police officer derek chauvin was convicted on all three counts in the murder of george floyd. david westin joins us now. the kind of commentary that was had so far is that it is not a cause for celebration, there is no jubilation because the baseline would have been if there was no institutional racism and police brutality in the first place. how valuable is this verdict in pushing things in the right direction? david: it is not cause for celebration, but i have seen celebration in different parts of the country. you can celebrate. there is -- can't celebrate. there is a man who is dead and

another sent to prison. in contrast to cases in the u.s. where there have been black men killed by officers and they have not been held to account for various reasons. this is in sharp contrast, that a jury came back in resoundingly to find mr. chauvin guilty on all three counts he was charged with. it was a departure from what we've seen in the u.s. in recent days. what comes next? how do we avoid the next george floyd? shery: what is being done right now, whether in congress, nationally, through states and localities? david: as you suggest, various states are having a hard look at their statutes. the big one now, and we heard various people, the lawyers for the family of george floyd, but the president of the united states himself saying we have

the george floyd justice in policing act, which is pending. it already passed the house of representatives, the only question is the senate. if adopted, it would be a fairly extensive redoing of policing in this country. in this country, policing is regulated at the local and state level, not the federal level so much. they are talking about having a stronger federal say in what police can and cannot do. haidi: in australia, the common law system, we guided if not always bound by precedent. we know during the last few weeks, it has been two more young black men that have been killed just during the time of the trial alone. so does this guide future decisions being made at the legal level? david: you are entirely right. we are a common law system in the united states, inherited from england.

although in the criminal area, typically it is not as easy. certainly the fact that something was found in one case cannot be used as proof in another case, unlike civil context. it does perhaps indicate a change in sentiment in the country about willingness to hold police officers accountable. one of the challenges will be making sure we are holding the light police officers accountable. -- right police officers accountable. we cannot also throw the baby out with the bathwater. the evidence would indicate a vast majority of police officers are decent law-abiding men and women. haidi: how has the political rhetoric changed with derek chauvin? shery: how has the political rhetoric changed since last year, when president trump used it to call the black lives matter movement -- calling out

to some of the violence we saw during the protests. we did have president biden calling for justice and equality when it comes to these racial injustices. david: it could not be much more different, could it? president trump really did focus on the looting and writing that was -- rioting that was done around this, a minority of the people demonstrating. president trump would focus on that rather than the underlying wrongdoings. president biden really focuses on holding police accountable, although president biden is careful to say you can't break the law. you cannot riot. he will say that as well, but the emphasis is exactly the other way around. haidi: what happens now to derek chauvin? when it comes to sentencing, to

we expect the prosecution to push for more than what we would normally see? david: great question. there is in minnesota -- and i have not practiced law in minnesota -- there are factors taken into account for a case, where basically the prosecutor can say there are extenuating circumstances that are aggravating, you should up a sentence. i believe this is the first time mr. chauvin was convicted of a felony. there will be a motion to dismiss notwithstanding the verdict. that is typical in criminal cases. i expect that will be rejected, but there will be an extensive pretrial sentencing process where they look at his background and present the evidence about mr. chauvin as a person. the judge indicates he wants to sentence him in about eight weeks. i would be surprised if there weren't an appeal at some point. shery: what is the maximum

sentencing term he could see for derek chauvin, as well as the minimum? david: i am qualified to practice law in the district of columbia, but not minnesota. i did google it. the maximum sentence for that most severe second-degree murder charge goes up to 40 years. typically for a first offender, that would be relatively unusual. we are talking about serious jail time. it is very much an issue. shery: david, thank you very much expertise on columbia d.c. law. david westin there. next, netflix shares slumped as subscriber growth falls way short of estimates. we get some analysis next. this is bloomberg. ♪

shery: time for morning calls ahead of the asian trading day with sophie kamaruddin. we continue to see rising infections across asia. how is that going to factor into the region's recovery? sophie: we have seen that perhaps put some weight on the anticipation for the recovery in the region. we see services sectors -- may see services sectors see some dampening effect. we have seen the msci aipac

gauge back too -- apac gauge back after prospect started to waiver in march. stock losses in asia this month led by japan and india, which are under increasing virus pressure. on india, one official has some optimism to offer, noting that as concerning as rising infections appears to be for india, he says this may be temporary given the supply demand mismatch of vaccine. that is not expect it to last long as measures are taken to boost supply and access. he stated research and's in the country will become unnecessary, which will allow the economic narrative to improve. this as investment started to expect -- as investment expected to start picking up in india. noting that ramped up investment in physical infrastructure will

provide support as well. haidi: let's get back to our top business story. the boom netflix enjoy during the pandemic has come to a halt, sending shares plunging. joining me to discuss is bob o'donnell, chief analyst at technalysis research. a big part of this is the post- lockdown effect, less people on netflix. the other part would be content. can they fix the latter? bob: i absolutely can. in their shareholder note, they noted the production delays caused by covid throughout most of last year have obviously delayed what they are able to show now. it takes a long time to film and produce and put these things together. they expect the second half of 2021 to have a significant boost of content. that is what they are pinning their hopes for future growth on.

you saw a dramatic pull in for subscriber growth. the bump was enormous. you can't sustain that. the question was, when will that slow down and how dramatically? now we have the answer. pretty quickly and by pretty much. but on the good side, the revenue numbers were higher, the revenue per subscriber was higher, so that gets to the long-term view of the business. not necessarily great for the short-term growth story. haidi: geographically, when you look at the region, where are you seeing areas of concern and where are you still seeing growth opportunities? bob: it still seems like they have plenty of growth opportunities outside the u.s. most of their focus has been on the u.s., but they have been doing a lot of work to develop content for specific regions and areas in asia and korea and china. they do have a challenge still for production in brazil and

india, you were just discussing challenges with india that may delay regional content there. i think they feel like they have a good collection of content coming. that should help them. they did specifically talk about latin america being relatively flat over the next quarter in terms of subscriber numbers. there are a couple specific areas that could be of concern. we have to reset our expectations on what subscriber growth is going to be like. the obvious question was, was this because of competition? here in the u.s. you've got disney plus and the peacock service from nbc, and you've got paramount service from cbs, so there is quite a few things going on. their point -- and it was a pretty good one, i thought --

the amount of declines they saw were relatively consistent, as a number of those regions don't have competitors, suggesting it was just a general lull and to a certain degree a saturation from all the people that jumped onto netflix subscriptions because of the pandemic. that growth clearly has slowed. shery: that is pretty interesting. executives just now concluding that call with investors. netflix saying they will support in tools like consumer products. they got a question about gains. they are saying they don't have any doubts gains will be important part of entertainment, but they don't seem too committed. are there any new angles to their business that could be explored? bob: no, the only thing i would say is as people in different parts of the world come out of the pandemic at different rates, i think the ability to consume netflix on mobile devices, on

cellular connected pc's, all of those things are going to matter. the importance of conductivity in all our devices is more important now than it have her has been. -- than it ever has beem. i think that is their ankle. -- their angle. it is a content driven business, and you have to have fresh content to maintain that growth. shery: earlier you mentioned the different regions where you saw the slow down in user growth as similar, whether or not they have competitors. where are the bite spots globally -- bright spots globally where they could get better growth with less competition and access to netflix -- and more people getting access to netflix? bob: india is an area of growth for them, china continues to be an area of growth.

parts of latin america -- the problem with brazil is the covid issues they are suffering, but theoretically that could help them in the long run. those three countries are going to be important. i think you will continue to see growth in other places. one of the interesting things that happened during the pandemic, a lot of people toyed with the idea of netflix just as they toyed with the idea of online ordering. all of these things have become a standard part of people's lives. there is a lot of covid based habits that have been formed. frankly, video consumption on netflix through various devices is one of them. that is what they are counting on. that is the engle they are taking before they move into new content areas like gaming. haidi: turning to apple, the new product lineup and the releases we saw today -- does any of it change the runway to growth for

you? bob: to me, the biggest take away from the apple event was the m1 chip. it was arguably the star of the show. the m1 is apple's own chip, pow ered by a.r.m. that they introduced last year. they said we will transition, but it will be a couple years. now we have imax with m1 and the ipad pro with m1. it emphasizes to consumers, hey, i want to buy one of these m1-based apple products. b, i want to get my developers creating applications to run natively on these products. c, apple is clearly deriving their own technology moving forward. i think the colors are kind of cool. i am a longtime apple follower. i deeply recall the original colored plastic imax when it

first came out. this is a nostalgic trip for me and other people watching apple. apple has a lot of young buyers that will be attracted to the colors. people are buzzing about the purple iphone, for gosh sakes. i think people will get a kick out of it. shery: i am sticking to the boring black and grays. let's talk about technology in general. there has been a huge rally in the tech space, but at the same time concerns about regulation. where are we right now? bob: what we have seen with the pandemic is tech has become so embedded into all of our lives. these are all tech based habits. there has been this recognition that some of us have been noticing for a long time, but governments around the world are going, wow, wait a minute, the level of influence and power these tech companies have is

staggering. with companies in china and companies in the u.s., the biggest players, there is a lot of concern about what that is going to do. long-term, don't know, these might be blips that don't majorly impact these companies, but there are a lot of question marks around them. at the same time, the semi conductor shortage is now rearing its head. the cracks in the foundation of the tech business are starting to show and some of these things have to be fixed. there are no easy answers, even to the regulatory issues or semi conductor issues. those are problems that will take several years to resolve. we will see tech dominate big portions of our lives. eight out of the 10 most trusted brands on a recent study work

tech brands -- were tech brands. that speaks to the role of influence tech companies have on our society overall. haidi: bob, always great to have you with us. bob o'donnell at technalysis research. let's get breaking data. new zealand cpi for the first quarter coming in bang in line with expectations. ticking up slightly somewhat from the 0.5% we saw in the previous quarter. year on year, 1.5%, exactly in line with expectations. just slightly quicker than the previous number of 1.4%. does not really move the needle when it comes to the rbnz, where they are more focused on the medium-term inflation outlook. shery: coming up next, europe's soccer super league teeters on the edge after all english clubs pull out. this is bloomberg.

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shery: executives behind europe's proposed soccer super league are in crisis talks days after its launch. the new league is heading for collapse after all six big english clubs pulled out in the past few hours following a backlash from fans, politicians and the sports authority.

bluebird -- bloomberg's business editor has the details. what was the point of all of this? was it not well thought out, or was the pushback too strong? >> may be a bit of both. there was definitely hugely strong pushback from fans, from governments, from the governing body of european soccer. it just seemed no one liked this planned super league at all. the opposition really gathered strength through the day tuesday, with first reports that chelsea was thinking about leaving, then mann city. in the last few minutes, all six english clubs have said they are pulling out. haidi: is this a plan that is dead on its feet now?

what happens next? john: it does lookk -- look dead. it would be difficult for the super league to proceed without any of the english premier league clubs, which would have been one of the biggest draws for fans. it seems other clothes elsewhere in europe that were considered being part of it are also rethinking that, including madrid and barcelona. it does seem that this plan is dying before it even got started. shery: the whole point was making money, right, especially at a time when revenue has been hit because of the pandemic? what does it do on their financials? john: the european governing body is talking to revamp the existing super league of european soccer with a plan

they are discussing with an asset management firm that would be backing this revamped champions league with about 6 billion euros. that might generate more revenue for these clubs that have been really struggling. the founding members of the planned super league, 11 of them are heavily in debt. only chelsea was doing well. they definitely do need to come up with a way to make a bit more money as we emerge from the pandemic. haidi: our bloomberg global business editor, john edwards with the latest developments on the super league,. -- league drama. we are seeing george floyd's

family and legal teams continued to speak after that verdict in the trial of derek chauvin, who was convicted of second-degree murder as well as lesser charges of third-degree murder and manslaughter for the killing of george floyd. we are awaiting comments from president biden as well as vice president kamala harris. that is coming up next. ♪

haidi: very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: i am shery ahn in new york. welcome to "daybreak australia." derek chauvin is found guilty of murdering george floyd. mechanical leaders are welcoming the verdict in the killing that ignited a racial reckoning in the u.s. president biden is exp