haidi: a very good morning and welcome to "daybreak australia." we are counting down to asia's major market open. shery: good evening from new york. haidi: these are your top stories. jitters in the markets. u.s. stocks fall and bond yields jumped after inflation rose the most since 2009. the largest gasoline pipeline in

america comes back online. colonial restarting after last week's cyberattack. and softbank sets a record in japan, posting the highest ever quarterly profits thanks to an unprecedented windfall. shery: this is the picture across wall street. u.s. futures holding steady after the s&p 500 saw the worst day since february. tech continues to lead the clients. yields surged the most since march. the dollar saw its best over the week. wti also saw a good day although right now it is under a little bit of pressure. surged to the highest since early march. the average gasoline prices topping $3 a gallon for the first time in more than six years. the colonial pipeline will be

restarting. wiens soared to record highs after was projected -- soybeans a sword to record highs. though wheat dropped. haidi: we are expecting that selloff across the board and equity markets to continue. we are getting asian futures lower in australia as well as japan and hong kong later in the morning. s&p futures down by about .4%. new zealand off by about .2% at that last trade. nikkei futures looking docile. kospi futures looking like we will see another big it. -- big dip. the u.s. dollar situation really played out and it came to the aussie and kiwi dollars. the aussie was the biggest decliner after long positions were cut. shery: let's discuss how inflation will fit into the broader markets. our next guest expects strong

growth over the coming quarters. earnings beating expectations in the discretionary sector hitting new highs. victoria fernandez's chief market strategist at crossmark and joins us now. great to have you as always. do you change the rotation to cyclicals from growth? because it has been going back and forth during the earnings season, hasn't it? victoria: it sure has, and that's exactly why you don't want to be chasing it. you get that whipsaw effect if you try and time the market exactly, try to take the highs and the lows in each sector. for us, we think is more important to really take that longer-term view. don't try to chase each rotation and longer-term we think there are some trends, even within the tech space. we have seen the tech space come back and we saw today. we think that is where some of the greater trends are going to be for growth going forward. so you can look at something like nvidia, something like

adobe, even some names that have had the largest pullbacks from the recent highs like apple and microsoft. these are companies that are going to continue to do well even though they have had this consolidation. and i think some investors should look at this consolidation as more of an opportunity than a distraction and a chance to move away from it. shery: how are you prefer -- how are you protecting your portfolio from inflation? victoria: when we look at the inflation numbers right now, we are more in the camp that the federal reserve is probably kong this right when they say that a lot of this inflation is transitory. we look at the numbers that came out in the u.s. today, about 1% of the numbers were purely due to base effects. you can take that component out of the equation. you look at where you are seeing largest gains in the cpi numbers, it is car rentals, it is airlines, hotels, that

reopening trade. these are all areas we think will be transitory and pass. when you look at the areas that are typically that sticky component of inflation like rent, owner equivalent rents, those were very small raises. so we really do not think you should be provision -- positioning your portfolio strictly for an inflation play. take that longer-term perspective, find those companies where you think you will see growth, data infrastructure, 5g, these are areas we would look at. but you could include some reopening components wi th that. just don't go all in on a reopening trade. haidi: i want to bring up this chart and get more on your point that you are finding more value within the growth stocks, as we see this pullback in big tech with high valuations. i find this interesting, whether this idea of inflation has anything to do with the big tech selloff. this show on the 40 day inverse correlation between the 10 year

is starting to fade. does the trajectory of inflation from here impact what happens in the next leg of whether we see a tech recovery or continued selloff? victoria: we really think you are getting kind of to the bottom of this tech pullback. we're not surprised to see a 5% to 10% pullback leading to this consolidation, and we are talking about a pause in the market. because if you look at the chart from october to now for that tech sector, up to the right for most of those months. it's ok you have a bit of a pullback. i do not think there is such a high correlation between the inflation numbers and a tech sector, that that's the main driver of what is going on. with rates moving at the pace they are moving right now, i think the market can absorb most of what it is seeing. the concern is that the markets have lost a little bit of confidence that the fed has

control of inflation. i do not think it is necessarily the level, i think it is concern of, is the fed going to way too long to address the inflation question that than they way to behind the curve. -- too behind the curve. instead of looking at what inflation might do and have policy correspond to that, they are waiting to actually see the numbers come in and then make a decision. i am not sure the market is extremely comfortable with that, and that is why we are seeing some of these 2%, 2.5% pullbacks like we saw today. shery: are you adding to positions in the tech names at this point given you say we are close to a bottom? the last time we saw this play out it was followed by another rally. victoria: you are absolutely right. it was. apple and microsoft are two of the largest holdings in our large-cap strategy. you're not adding to those names

because we are pretty full. but there are other names within the tech space on a broader level that we are adding to i mentioned nvidia. you look at where we are at with semi conductors and shortages we are seeing in chips. i think you have an opportunity there, especially as globally people are changing the way they are working. there will be more remote work and we will need more of this type of product. that is a play you can make. and i mentioned adobe as well, the internet play where every company now is doing more selling online, they are having to really expand their online offerings. these are areas that we think are not as prone to some of these larger pullbacks. but they are still within the tech space, and you can have an opportunity as the prices come back some over the last couple weeks. haidi: thank you to victoria fernandez. shery: breaking news.

elon musk is saying tesla will be suspending vehicle purchases using bitcoin. he's talking about concerns about bitcoin's environmental impact. elon musk saying tesla will not be selling any of the bitcoin holdings he has right now, but he's talking about concerns over bitcoin's environmental impact. of course this has been raised numerous times as we continue to see the huge electricity usage mining bitcoin entails. elon musk now saying tesla will be suspending vehicle purchases using this cryptocurrency bitcoin, although they will not be selling any bitcoin. we're seeing the cryptocurrency right now under a little bit of pressure. let's now get over to vonnie quinn with the first word headlines. vonnie: china has deployed warships to a disputed area of the south china sea.

before and affairs of secretary says the south asian nation is considering another round of protests after beijing increased chinese vessels in the contested area to 300 from more than 200 in march. he plans to take up the matter with his chinese counterpart. >> [indiscernible] this is essential. vonnie: a diplomatic push is intensifying into the most serious clashes since 2014 involving israel and the palestinians. the u.s. deployed in envoy to the region and palestinian media reports egypt and qatar also involved in mediation efforts. palestinian rocket barrages are reported to have killed at least

56 palestinians in gaza and six people in israel. a grupo cdc advisors say children ages 12 to 15 can safely take the shots from pfizer and biontech. they voted 14-0 after the fda cleared it for emergency use earlier in the week. the cdc director must now sign off on the recommendation to make it final. children could start being vaccinated as early as this week. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: still had, metals rally rolls on as copper and iron ore hover near records. that has dan hynes raising his price target. shery: plus colonial finally restarts their pipeline after the hack, but the supply chain will not fully reopen for days. this is bloomberg. ♪ s is bloomberg. ♪

shery: the biggest gasoline pipeline in america's returning to service after recovering from a cyber terror -- haidi: let's get more from houston. is everything back to normal now? >> no no no. several days. there will be interruptions of service even as they bring it back. some folks will get their fuel fairly soon but is not an on/off switch. it will be a process taking a while. shery: gasoline stations have been running dry. jeffrey: that's correct. two thirds of stations in atlanta are dry without fuel of any kind. two thirds in north carolina. similar numbers and other parts

of georgia and virginia. d.c. and maryland also picking up more averages today. shery: we were trying to figure out if they were negotiating to pay a ransom with the hackers. do we have any idea? has any of that played a factor in bringing the pipeline back online? jeffrey: that is a great question. we heard today from the biden administration that colonial advised not to pay the ransom. in terms of whether the ransom was paid, i could not tell you one way or the other on that. i would be guessing if i told you so i do not want to give you a wrong answer. i don't know on that one. haidi: this may be the start of a normalization after the crisis, but is there ongoing more structural impact on the oil market as a result of this incident? jeffrey: certainly as we have seen refining margins for gasoline and diesel go up, better news for refiners. if you are a motorist you have seen your retail price go up quite a bit the last few days.

u.s. gasoline is over $3 a gallon for the first time in over seven years. on an inflation perspective, that is a bit of a bump, yes. shery: jeffrey bair in houston with the latest. next, australia gets a boost to its vaccine rollout. moderna is set to provide 25 million doses, joining pfizer and astrazeneca has approved shots. details ahead. this is bloomberg. ♪ ls ahead. this is bloomberg. ♪

haidi: let's take a look at bitcoin coming under some pressure after we had a statement from elon musk saying that tesla has suspended vehicle purchases with bitcoin. elon musk saying there is increasing concern about the environmental impact associated

with mining bitcoin and the use of fossil fuels. this does seem to be a change in tune because a couple weeks ago we had cathie wood, jack there were earthy -- jack dorsey and elon musk promoting the idea that mining bitcoin could be good for the planet. of course critics have long been pointing out that despite institutional hedge funds that have been eager to promote the opportunities in trading bitcoin, there is a lot of concern over how it affects the environment in terms of the amount of energy consumption needed to mine as well as maintain bitcoin. we will be getting you more on that story as it develops, but watching a little bit of pressure. not exactly a wild swing for bitcoin. let's get the latest on the virus now. moderna has reached a deal with the australian government to supply 10 million doses of its covid vaccine this year.

more booster shots are expected in 2021. it my also see the moderna produce locally and utterly a. paul allen joins us now for more. australia now has three vaccines. could this potentially change the situation when it comes to the very slow vaccine rollout? paul: potentially it could. it is hard to say when the moderna is going to get rolled out. first it needs approval here in australia. moderna has not submitted their application yet. they said they will do it shortly. if you take novavax as a guide, shelley has ordered 51 million doses of that vaccine, but approval delays mean that might not be delivered by september as hoped. so these things do take time. but once it is approved, moderna will be a third vaccine alongside pfizer -- or zeneca. astrazeneca of course is locally produced. moderna is mostly produced in

the u.s. moderna is in talks with the government to look at potential local manufacturing opportunities here, but that also would take time potentially up to two years, because there is no local manufacturing capability in australia for mnra vaccines. shery: you mentioned the speed of the vaccine rollout in australia has been criticized for being too slow. are things improving? paul: very gradually. it is not getting worse, i will put it that way. almost 2.7 million doses administered to a population of just over 24 million. in the past week there has been 400,000 astrazeneca shots given to those over 50. a new batch of 350,000 pfizer vaccines arrived monday, that is being administered to 40 to 49-year-old. more are getting rolled out every day. the budgets yesterday had $1.9

million additional for the rollout. but the prime minister still being very coy about when the rollout will be complete. he continues to refuse to commit to a timeline or any petitions, but we have some hints around other information like international students may be gradually returning this year, or a migration getting back some time in 2022. both hard -- but no hard and fast deadlines for the completion of the rollout. shery: vaccines developed by sinovac biotech are among the world's most use shots about questions about coronavac's efficiency has lingered. -- about -- take a listen to how he responds to the skeptics. >> why is it hard to reach 100% vaccination rate, even when you have vaccines? >> the next key consideration is

safety. vaccine safety has a great impact on vaccination rates for a massive population. if a vaccine has severe side effects, even if it is very rare, it will hurt people's willingness are vaccine overall. >> we have seen some countries which have already received a huge amount of vaccine, and i reached high vaccination coverage. they also have well-established systems which are not accessible for many countries in the world. what we are facing is a global pandemic. not just an outbreak from one country. efficacy varies among different vaccines. but i want to emphasize our goal is not to compare whose efficacy is high or low, but who can bring cases down in this country, in this region, or this city. that is our ultimate goal. >> i understand that, though i do think different efficacy rates, four different efficacy

rates, has potentially led to some hesitation in some of those countries around coronavac. because as you said yourself earlier, there's such a higher level of scrutiny on these vaccines, higher than any vaccine that has ever been made, really, with the public knowing much more about them then they would about the ordinary flu vaccine, or other vaccines that they are taking. what's your response to that? >> we will do more studies on protection rates, but our efficacy as shown in phase three trials cannot truly represent protection following vaccination. we have seen the effectiveness from chile's real-world study is higher than efficacy in phase three trials. so at the end of the day everyone will look at reduction in cases in your country as the most protection rate. >> in hindsight with there be anything that you have done

differently, particularly on the communication side? >> it would not be that different. in an emergency situation, doing the most important thing will always be our top priority. when covid breaks out, the priority will have to be meeting the huge vaccine demand from other countries. even if we are in decision -- in a similar situation in the future, we will still make such trade-offs. whether we should get the paper out first for the vaccine registered first. >> what do you think this global vaccine rollout says about china's nascent pharmaceutical industry and its future? and what do you think of the main differences you have seen between the way chinese companies have approached this vaccine development and rollout? >> so far, we have provided 380 million doses globally.

sinovac now has the capacity to manufacture two billion doses of vaccines in beijing. our monthly production could reach over 200 million doses, or even 300 million doses. that speaks to the level of chinese vaccine industry. haidi: that was the sign of ask co speaking with emma o'brien. a quick check of headlines. blackrock got approval to begin running a wealth management business in china. the joint venture is 50.1% owned by blackrock. it won in light lester to begin jointly building the business. the ceo says the chinese market is a significant opportunity to serve long-term investors. beijing-based medical data company is set to be planning an ipo that could raise about $500 million. the offering could come as soon as this year, with the firm considering potential venues including hong kong. bank of america and morgan

stanley are working on the proposed share. they provide cancer-focused health care service and is reportedly backed by alibaba health. volvo says it is considering an ipo on the nasdaq months after falling off a merger. bloomberg reported an offering by volvo's owner could value the business at around $20 billion. it would remain a major shareholder in the swedish automaker. next, china deploys more ships into the south china sea despite philippines protests. before an affairs secretary tells us what actions he will take. and more big interviews coming up. we will be speaking with the nissan ceo after the company's shares took a dive. also hearing later tonight. this is bloomberg. ♪ is is bloomberg. ♪

haidi: the philippines foreign secretary vowed to take -- after reports of more chinese ships in the contested area. he says he will not let any ships pass. he spoke exclusively to us. >> as far as i know, the latest maritime control is may 9, 2021, reported the presence of 287 chinese vessels.

well, ok. that's news to me. >> to your point, we will need to dig deeper and get more information on that. what would theoretically then be the next step from your office? >> one site plot the coordinates and get more data, from the national task force, the answer to me, nobody else. then i prepare my diplomatic protest. which is essential because you never let any incident pass. >> can we say unequivocally whatever is happening with the south china sea issue will not affect other parts of this relationship? i will bring up the vaccine relationship of course coming from china. the president said it will not affect that. >> yes, i certainly hope that. it depends on how they behave and how we behave, i guess. so far, they are responsible.

they are the ones who made the appearance. let's hope it does not escalate. china's enormous economy is essential to a post-pandemic recovery for the entire globe. let's face it. that is a $400 million to $600 million middle-class domestic market of shopaholics. every country needs that. >> what does it say that since he launched the protest and a tweet a few weeks ago that there are more ships there? what does that reflect? >> well, i guess i will have to -- i'm going to have to bring it up to him. they say it's their traditional fishing -- ok. when 228 appeared, the chinese ambassador explained it is traditional fishing route.

i said that is wonderful, but there's this -- are they fishing there? they may well be. but don't you think they are overfishing by now? they have not moved from there. so. in short, the chinese say they are there for fishing. they have made no intention to claim it. if you are there to fish, you are definitely not exercising -- >> when it comes to the vfa with the u.s., what's your preference of what happens? >> it's going very well. there are technical issues. this is a technical agreement having to do mostly with the chapter on jurisdiction.

i can tell you most of the disagreements have been resolved. there were also what you might call turf wars. why would we let that get in th e way of anything? >> is the hope from the philippines perspective in terms of vaccine supply, are you hoping the americans will supply more than a chinese -- than the chinese? >> i say this in real candor. he came over and said he was going to donate 500,00 doses of sinopec. i said, we can buy more. he said no, we don't do that. we need it for ourselves. the reason we donate this, we dictate the amount.

it's a donation. they are not in that game. shery: the philippines foreign secretary there. let's now get to the first word news. vonnie: the u.s. trade representative has called for updated tariff tools to avoid applying decades-old laws to current issues. responding to a senate finance committee question about the 1962 trade expansion act, which former president donald trump to put duties on steel and aluminum imports. also says u.s. efforts to effectively compete with china hinge on cooperation in congress and globally. >> i think we should work in multilateral ways and forms to compete with china and to compete with china effectively. what we are looking for are trade policies, month to lateral ones -- multilateral want, looking at chinese competition that will have the broad bipartisan support we need. vonnie: china is reportedly

considering replacing their top economic envoy to the u.s. the wall street journal says beijing may be mulling another vice premier for the position. he's a close friend of president xi jinping and lead contentious trade negotiations during the trump administration that led to the phase one trade deal. in a setback to the impending tokyo olympics, the u.s. national track and field team has canceled plans to train in japan over virus safety concerns. a japanese official says other teams have also canceled for similar lesions -- reasons. they are pushing ahead with games despite expanded lot downs and calls from the japanese public to cancel. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: bitcoin falling after a tweet from elon musk saying tesla suspended vehicle

purchases using bitcoin. bloomberg's garfield reynolds john's us with more. bitcoin already had a tough day and this is really adding to that pressure. garfield: yes, especially because it helps to emphasize the concern that bitcoin really is a speculative financial asset more than it is the future of money, which has been one of the things that sent it higher. haidi: the thing is these environmental concerns, the associated fossil fuels and energy consumption is nothing new. does it also extend across the rest of the crypto spectrum? garfield: it's often difficult to keep up with what mr. musk is tweeting, but you raise a good

point there. it will be interesting to see if musk is saying just now that they will be trying to find a digital coin which is less environmentally stressful, and that's not easy because the basis of most cryptos is there is some mining. if ethereum does not have that hard cap that bitcoin does but it is still something you need to mine, and that requires computing power. and you consider the way there has been a lot of pressure on large companies to be more environmentally friendly. if this becomes an issue that people are taking serious note of, then how do major investors, big banks or big companies in general have been pushed to burnish their credential but

then they invest in crypto, which is basically a lot of fossil fuel usage. shery: could then lead to longer turn downside pressure for bitcoin and other cryptocurrencies, given that one of the supporting factors that perhaps we thought could sustain bitcoin was perhaps hedge for inflation. but we saw the cpi numbers today and bitcoin still fell. garfield: this is one of the difficulties that a lot of assets face when they are touting this as a next haven or hedge against inflation or other disruptions. shery: garfield reynolds there, reacting to that tesla announcement they would stop be accepting bitcoin. haidi: some ceo's steering clear of bitcoin for now. he said he is not sure of the

cryptocurrency's true value. he spoke after softbank recorded their largest ever first quarter profit. what's behind the record performance we saw? >> it's all down -- they've had an extraordinarily successful quarter on the year overall. that's all down to what he called the golden eggs, which are investments soft anchor got in on early. it's also over the last quarter the most in official to softbank , which was the south korean e-commerce company. that contributed to most of the investments they had paid off. obviously it was a good year to be investing in tech startups and tech in general.

that all combines to what was a blowout quarter for them. shery: what has really been driving softbank shares have been buybacks. have we heard an update on that front? gearoid: we got an update but it is not an update investors would have liked to hear. a lot of analysts were expecting and hoping they would announce another buyback. instead he announced existing by bank -- buyback concluded coincidentally yesterday at the close of market in tokyo yesterday. he was clearly on the fence about another buyback. he didn't announce one yesterday. he said basically there could be one in the future, but the buyback had been done not to boost the share price, but to turn some of softbank's existing assets into cash, then turned into more liquid assets again

with the investment in u.s. stocks. so right now it seems like do not expect any buybacks in the near term. haidi: our senior japan stocks reporter there. next, just how far copper and other commodities can continue rising as fears of inflation come to the fore. this is bloomberg. ♪ his is bloomberg. ♪

>> under my baseline i expect inflation to return to, or perhaps run somewhat above our 2% longer run goal in 2022 and 2023. >> this is a time when i would expect to see a fair amount of volatility in inflation. >> we need to expect some surprises because the economy closed down in a synchronized manner, but it's reopening in stages. >> there will be more bumps in the road. >> the markets are challenging the fed's assumption inflation is transient. >> we are at a bigger turning point then the fed will be describing. >> the fed and others have rested a lot on inflation expectation being anchored. this is the type of thing that will start to move those inflation expectations. haidi: a surprise jump in the

pace of u.s. inflation, so concerned that rising prices concer -- could hurt our recovery. for analysis, let's bring in dan hynes. it has been a meteor cries for most commodities. -- a meteoric rise for most commodities. is sentiment and equities now playing into commodities? daniel: absolutely. we are seeing that for some time now. prices are coming off a loan based, following the downturn at the start of the pandemic. but we are seeing that continue to build that momentum. with the demand now looking pretty strong over the foreseeable future. it looks like this thing could certainly go a lot longer.

haidi: what are you most bullish on, then? do we see a continued rebound after the pullback in copper? can we really expect iron ore to continue pushing these new highs over 200? daniel: i mean, what's happening there is the market testing the reaction from the supply side. demand is strong, but it's been the lack of reaction from supply. in fact, we continue to see risks of either disruptions or delays to operations as well. so that's really compounding things. until we see that reaction, it's quite feasible that we could continue to see the market really push the boundary and see where that reaction comes. as for copper, it's always been a significant delay between the high prices and went by can come

on. -- when supply can come on. haidi: it is interesting whether we are getting unhinged from how the market is already pricing in inflation as well as spending and growth expectations. when it comes to australia specifically, are you staying at the same level of concern when it comes to whether iron ore could eventually come up between the china and australia spat? daniel: i think it is something to certainly keep an eye on, but i think that would be shooting themselves in the foot if they did start to place some constraints, at lease in the short-term. -- least in the short-term. they have certainly hinted that over the long term they will look to diversify away from australian ore with either investment overseas or their own domestic sources. and then also potentially in the steel industry itself, just

making a lot more efficient. that is going to be an ongoing trend i think for the market to deal with over the longer-term. but in the shorter term it is hard to see how that can really be caught up in these rising tensions. i am more worried about other commodities which are not as significant for the chinese, but have not been impacted so far. you look at lng for example, where there has been murmurings of chinese buyers being told to stay away from australian cargo. so it's an issue that the market is certainly worried about, but i do not think it will have a sizable impact on the supply side anytime soon. shery: talking about the supply side, here in the u.s. we are now seeing the colonial pipeline restoring services after that hack. given we saw gasoline prices topping $3 a gallon for the

first time in years already, and the fact that it takes weeks in order to get all the gasoline supplies from houston to reach the rest of the united states, where can we see prices going from here? daniel: i think people are still going to be very concerned, so they are certainly -- there is certainly going to be panic buying, and that will likely keep prices relatively high. of course this is all coming head of the u.s. driving season as well were people get out on the roads in crazy numbers. despite pent-up demand from being virtually locked down for a year, i think it will result in some pretty strong demand coming through. so yeah, it does not look like that pipeline coming back online will really ease the trend we're seeing in crude oil and gasoline prices in the u.s. i would expect those to continue

to rise. shery: we had a recent op-ed on bloomberg saying cyber warfare is the new oil embargo. how important is it to really keep an eye on these vulnerabilities in the networks, in the supply chains, especially as we have seen more disruptions as time has gone, whether this hacking or what happened in texas earlier this year as well? daniel: yeah. the level of technology used through supply chains of all commodity markets is quite significant, and that has obviously been driven by trying to create efficiency and make the operations as fast as possible. so that's going to be something i think which the industry has not really grappled with greatly in the past, but certainly will have to deal with in the future. and i think that is just adding to, i suppose, these concerns on

a variety of factors around whether supply is secure enough to meet this strong level of demand we are seeing. shery: what do you make from the latest from opec as well? they raised their forecast the amount of crude they have to make this year by 230,000 barrels a day just this week. what are we seeing on the demand side of things? daniel: it is pretty positive. i mean, obviously india is suffering at the moment with that deadly second wave of coronavirus, but you look outside of that and a lot of the major economies are really emerging quite strongly from recent lockdowns. europe i am quite positive now over the next couple quarters at least, that really kicks into gear. the u.s. has been strong for quite some time. the only handbrake on it is

still international travel in the jet fuel market. that will remain relatively subdued. you will now see a series of upgrades by these agencies around the demand forecast as demand comes in much better-than-expected. shery: dan hynes, always great having your insights. a commodities rally really playing into inflation concerns. take a look at morning calls today. headline and core cpi spiking in the u.s. worries over inflation are overdone. they see the rising breakeven rates as excessive, and made the 10 year breakeven too expensive. their advice, buy japan linked to bonds to hedge against inflation. haidi: and of course we're looking at --upgrading guidance for this current fiscal half year.

bloomberg intelligence seeing upside risk. even on the company's earnings. analysts think it is at least 10% too low given the upgrade and the trends where seeing. -- we're seeing. tune into bloomberg radio to hear more and get in-depth analysis from the daybreak team. we are broadcasting live from our studio in hong kong. you can listen and by the app off radio plus or bloombergradio.com. lots more ahead. this is bloomberg. ♪ s is bloomberg. ♪

haidi: let's take a look at the day ahead industrial you. moderna seal the deal with the austral and government to provide 25 million doses of its covid-19 vaccine. the surprise announcement might also see the moderna vaccine being produced locally in australia. australia and north america -- in mining, exploration and public policy. nevada is the top area. also on the earnings front we are watching -- the company had been an australian stock market darling but they have fallen. we will speak exclusively to

their ceo. shery: here's a quick check of headlines. deutsche bank is rearranging how it sells fixed income trading part -- trading products without sacrificing revenue. the new model will divide become which team into two groups, one focusing on liquidity and another on client solutions. they are aiming to keep revenue stable while cutting expenses by almost 10% by the end of 2022. starting the sale of their non-.8% stake -- trying to appease disgruntled shareholders. the stock is around 40 hong kong dollars apiece. proceeds expected to fund share repurchases. they are close to hiring an external ceo, whose test will be to revitalize sales across all categories. coming up, the market outlook

would lower gilbert joining us shortly. plus, a big interview with one of president biden's covid advisors. this is bloomberg. ♪ ♪

haidi: good morning. i am haidi stroud-watts in sydney counting down to asia a pleasure is major market opens. shery: i am shery ahn. asian substitute track wall street lower after key u.s. inflation readings accelerated at the faster rate since 2009. bitcoin tips along with tesla she after elon musk dispense using it to pay for vehicles