haidi: welcome to daybreak australia. we are coming down to ages major market opens. shery: good evening from bloomberg's world headquarters in new york. haidi: u.s. stocks halt a three-day slide. industrial and financials lead the gains with investors turning from growth to value companies.

alibaba looks to move beyond china's monopoly crackdown. it is pledging to him boost investments after beijing's multibillion-dollar find triggered its first loss in nearly a decade. airbnb tops analyst estimates. lingering pandemic effects causing losses to balloon. will be speaking to the ceo. shery: we saw u.s. stocks gaining ground for the first time in four days. we continue to see that rotation to value. the s&p 500 seeing it's best day since march. energy lead declines after oil slumped the most in over a month. this on growing inflation concerns. we had ppi rising more than forecast in april. bitcoin continuing -- reversing the losses we saw in the regular session and gaining ground. we saw elon musk doubling down

his attack on bitcoin. let's now turn to the markets across asia. here is sophie in hong kong. sophie: we are ending the week on a more cautious tone. we had the kospi and the asx 200. now entering a technical correction with inflation anxiety creeping in and tech taking a hit. a three-day drop. we have it now in connection territory. exacerbating the losses in taipei. that has brought valuation down to the 10 year average. flipping the board for japanese stocks for the nikkei 225. still trading around 19 times for the earnings. we are seeing the cave futures looking at gains for japanese

stocks this friday. kiwi stocks are gaining ground. we have aussie futures pointing to gains after the asx 200 fell to a one month low. pulling up the charter on the terminal, we have materials and tech weighing on chinese stocks, chinese benchmarks being put under pressure. kenny's equities entering a second bear market -- chinese equities entering a second bear market. shery: let's discuss the concerns with the ceo of the spotlight as that group. we continue to see this back and forth in the markets.

i went to point your attention to the misery index in the u.s. because we are continuing to see it climb since the end of february and this index pointing to those inflation concerns, the unemployment rate as well. is this a risk for risk assets? >> i am not sure i would consider a risk. it is a short-term concern. the markets are dynamic. these are not new things happening. the market -- whether or not the market expected it to happen at this point and if not, it will absorb the information and we will move thread. in the short term, there is some issue with the risk assets. specifically the growth names that have inflated multiples. those names are going to be hurt the most and that is what we have seen. as we absorb the information and none of it is really new, we knew that inflation would jump

up and almost all of what has been driving this massive increase in inflation -- the largest increase in inflation since april 1982 has been covid rebound names. logging, car prices, car rentals. in terms of the longer goals, i don't think this should change your thesis that we should be cognizant of the short-term risk. shery: we see that with again accelerating and the last couple of months. >> the risk is whether or not the market is ready for yields to increase at the velocity they have been. it is not the increase in bond yields that is concerning. it is how quickly they turn. it is bad for bond and fixed income investors who use fixed income as a way to manage risk

in their portfolios. a rapid increase in yields is definitely not good for a total return in bonds. as yields go up, markets can absorb it. the market does not like seven shift and that is what we are saying to it is also -- the market does not like sudden shifts and that is what we are seeing. the markets are telling the feds they want them to act sooner than what the fed said they will. will be curious to see how the fed reacts to all the things that have happened in the market and whether or not they change their guidance in terms of raising rates. haidi: everyone is focused on the fed, but you have been more concerned about the physical side in terms of disappointing market expectations that are probably already well priced in. >> for a fiscal perspective, we are looking at the potential tax increases. that was a new story for a record two and everybody forgot

about it. that seems to be the theme in the market these days. react to the news violently and we move past it. infrastructure spending and concern from that standpoint. when it comes to the fixed income and the ability for the treasury to find investors, we are still on the -- we still have higher yields in most of the developed world. it is concerning. you don't want to see a massive increase in fiscal spending. it is going to be offset with much higher taxes in the future. there are numerous risks to the market short-term. none of which is economic concern. the economy is coming off a bottom and a day don't inc. -- and i don't think it will affect the rebound. haidi: i want to bring up a chart that goes to my next

question. re long-term still bullish. take a look at this chart showing the fading correlation between 10 year yields and the faang index. that correlation is starting to fall apart. to that end, how much of the tech selloff has to do it inflation fears? how much of it is fundamentally concerned about how high valuations have driven and where would you be adding to positions given that pullback? >> i think it makes sense that any area of the market where the multiples were really inflated would be hurt by rising inflation. that impacts how you calculate your risk return. you're looking at the growth expectation and now you adjust. suddenly, the growth you are expecting, your outlook changes when you have to recalculate for the greater inflation.

and then the multiples look even more inflated time focusing more on the cash low story. i want to look at stocks where multiples are coming into a reasonable range. i expect them to be trading at a premium. higher growth names should trade at a pretty impaired i want to see strong earnings behind it. i went to see strong free cash flow behind it. the long-term trends ted and i would be looking to buy on weakness -- long-term trends. i would be looking to buy on weakness. long-term trends are very favorable. any opportunity to buy at a better pricing, more reasonable multiple is an opportunity i would take. i am not one for some of the higher flyer names like teslas of the world where the earnings and cash flows are not quite as

strong as some of the semi's and the longer-term trends are not as favorable. haidi: always great to have you with us. ceo of -- cio of spotlight asset group. let's get you to vonnie quinn. vonnie: the is really military says both erin mass -- both air and ground troops are attacking the gaza strip. biden singled out attacks on gaza, which he says are fired indiscriminately into population centers. violence between israeli arabs and jews. u.s. house speaker nancy pelosi says countries -- companies like colonial pipeline should not pay hackers. sources say they paid nearly $500 million after the ransomware attack.

the pipeline shut down triggered panic buying of gasoline in the eastern united states. >> this cannot be open season for hackers who can make money off of a threat even if they do not go as far as crippling the entity as with colonial they did not. vonnie: china has pushed back on a report it is considering replacing its economic envoy to the united states. a spokesperson says it is not true. the chief negotiator for the phase i trade deal signed last year between washington and beijing. the u.s. trade representative says she expects to talk to the top negotiators soon. australia says it is ready to resume dialogue with china although ties are strained. the foreign minister canberra seeks a constructive relationship with beijing and is

open and consistent about its china challenges. tensions have escalated after australia accused china of human rights abuses and calls for an inquiry into the origins of covid-19. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, alibaba posts its first quarterly loss in nine years after paying a record find to beijing. we will assess if the regulators are firmly in the rearview mirror. plus, a big interview with airbnb after bookings beat estimates in the last quarter. ceo brian chesky joins later. this is bloomberg. ♪

haidi: shares of alibaba slumped

more than 6% in new york after posing -- after posting its first loss in nine years. our chief north asia correspondent is looking at all the results. what jumped out at you in this release? >> the revenue projections and the revenue numbers came in better than expected. that was good, but it was not enough to assuage concern i investors who did sell the shares off in new york. this is the first net loss since 2012. they had the $2.8 billion fine from the anti-monopoly regulators. a lot of speculation ahead of these numbers. this is the narrative that executives wanted to portray. ok, we are going to take this charge in the first quarter and we are going to move on. that was a key theme of the

conference call. we are ready to move on. we are ready to move on as well with new spending. he says we will be planning all incremental profits into new energy and community finance. that raises a lot of questions of investors and analysts on the call. how much will that new spending crimp margins going forward? here are takeaways. we all know first net loss in nine years. revenue grew better than expected. 64%. the consensus was for 58%. forecast failed to rise at least 30% in the current fiscal year. that is a deceleration from the previous year's 41%. revenue is going to be better than expected this fiscal year, but that is going to be down from the completed fiscal year.

what is very interesting, there were no direct questions from the analyst about the regulatory crackdown or future from authorities about how alibaba might address that. that seems to be a glaring miss from the analyst community. shery: it is not really matter how much alibaba wants to move on to how the chinese authority -- move on. how the chinese authorities feel. >> exactly. he putting in much reiterated what they said in early april when the fine came down and they caused the book on the four-month investigation on the monopolistic behavior. he said it is almost bitten birthday -- almost written verbatim from what he said in early april. it sounds like it was written perhaps by someone in beijing government. he says we accept the penalty with sincerity and will ensure our compliance with determination. you know, there are going to be

some headwinds from alibaba. they want to portray the fact they are moving on. cloud revenue, which turned its first ebitda profit in third-quarter, cloud revenue growth slowed to 37% after an unspecified client -- maybe they were worried about the wrigley tory pressure -- -- the wrigley tory pressure -- cancel the contract. the competition. even though a number of competitors are facing possible regulatory action, they have taken advantage of the weakness in alibaba. 788 million annual active buyers in the december quarter. that dethroned alibaba as the largest e-commerce operator by consumers. alibaba yesterday reporting users had climbed back tate hundred 11 million users in the

fourth quarter. they still have a lot of cans tumors -- a lot of consumers. the regulatory threats are still going to persist. i have not even talked about ant group. shery: that is a whole different story. we will be able to ask those questions to our analysts coming up. more alibaba analysis. plus, moody's investors vp is on bloomberg markets china will be discussing all of those issues. you can turn to youtube for more content. watch redlines, china and they tack. this is bloomberg. ♪

shery: it has been a difficult

week for bitcoin. the biggest cryptocurrency slid below $36,000 at one point. su keenan joins us with the latest. tell us what is driving the move downward. su: let's go right to the bloomberg because it has been a wild week for bitcoin, the largest crypto. it has been down as much as 15%. the slide appeared to start with this tweet by e line musk saying -- but elon musk saying the use of coal was insane. bloomberg reported that yesterday. the slide became intensified today when elon musk is adding to his critique, saying he does believe the good coin use of energy is -- the bitcoin use of energy is massive. the omissions are comparable to

that of american airlines. china is a player here because 70% of coin mining happens in china. china has been critical of that. bloomberg then reported the biggest cryptocurrency exchange and that is by nance is facing a federal investigation by the irs and the justice department having to do with money laundering. bloomberg sources have said the inquiry has to learn what is involved. haidi: coinbase fluctuating in late trade after putting revenue just below estimates. the ceo told bloomberg there is still room for growth. >> the crypto economy is taking off. a platform, taking advantage of that opportunity. it is cool to see this wave of

act to pretty not only from retail users but also from institutions. he had not seen it in droves before. what i think you are seeing as there is a lot more credibility. we have really high quality institutions who want to participate. >> you have been a public company for a few weeks. a huge debut but there has been a lot of volatility in the crypto space in general since then but also in coinbase shares. what has it been like being a public company and what do you make of that volatility? >> welcome to crypto. it is a feature, not a bug in many ways. we were operating as a public company internally for so long. we are looking at the long-term. we -- these slips do not phase us. you're looking at the long-term opportunity. you buckle up and go for it.

>> you are not providing much financial guidance. why is that and do you foresee a time when you might provide more guidance? >> this goes exactly to your last question. this is a new nascent technology shift. much in the way the internet took hold and changed people's lives fundamentally. with this technology shift, you will see a volatility. we will not play that whole game of short-term management. that is not the game we are playing. we are playing a long-term game. this whole industry and our company has such an incredible opportunity and we are not going to think about it in a quarterly way. we will think about it as a long-term game. >> you cite the market uncertainty as part of the reason for limited guidance. what is the biggest question

mark for you as you look ahead? >> it is about, how do we create the most user-friendly experiences for folks? i always make the analogy of the old mobile phones that had these clunky interfaces. we are in that phase of crypto. we have to make it more usable. we have to make it more accessible. we have to have more regulatory certainty. we are seeing so much participation now, we feel like there is a great opportunity ahead of vice. >> elon musk abruptly announced tesla will stop accepting bitcoin as a form of payment. crypto markets losing hundreds of millions of dollars on the back of that tweet. what is your take on that? is there something wrong with that picture? >> there are so many misconceptions.

i think there is something like 75% of miners are using renewable energy. i welcome elon musk and billion minds like him. it helps us drive forward more sustainable innovation. you are seeing right now we are moving from a proof of work to a proof of stake. that is the way we are thriving more energy. i just wanted to say i do think there are a lot of other industries and devices that consume a lot more energy than bitcoin. we have to put some things in perspective. we want to have these dialogues and we want elon musk to participate. shery: the coinbase president and ceo. don't miss another big interview ahead.

australia's latest budget offered plenty of incentives to try to woo female voters. this is bloomberg. ♪

haidi: we do have some breaking news. it is dated to the downside when it comes to new zealand manufacturing pmi. falling to 58.4. still above the line the demarcate growth from decline. we are seeing a substantial drop below 60. we have seen an outlook from the rbnz. various members have said they think the interest rate scenario needs to remain low for some

time despite the economic recovery. we also know there has been some supply side constraints with new zealand. we will get a breakdown. 58.4, falling from 63.6 in march. let's get you the first word news. vonnie: the head of the u.s. cdc says fully vaccinated people can stop wearing masks in but -- in most -- in most settings. the cdc cites growing evidence of the efficacy and protection offered by vaccines. it still recommends masks being worn on planes and public transport and by those not fully vaccinated. >> fully vaccinated can participate in indoor and outdoor activities large or small without wearing a mask or

physical distancing. if you are fully vaccinated, you can start doing the things you had stopped doing because of the pandemic. we have all long for this moment. when we can get back to some sense of normalcy. vonnie: the philippines is using virus curves in its capitals. an allowable shift to the second low of -- second tier of restrictions. the philippines suffered a worse than expected economic contraction last quarter. u.k. prime minister boris johnson says he is anxious about the spread of a covid-19 variant from india. fresh data showcases data showcases of the strain more than doubled the past week. starting next week, people should be able to meet indoors,

at home, pubs and restaurants. the european union is accusing russia of gradually trying to take over parts of eastern ukraine. in document seen by bloomberg, the e.u. says tactics include issuing past arts told locals. on thursday, the crime and said it is not planning to absorb anyone. -- the kremlin said it is not planning to absorb anyone. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. shery: the colonial pipeline says it should reach full capacity soon. it comes after bloomberg learned the company paid 5 million dollars in ransom. nancy pelosi says work needs to be done to address the possibility of more attacks. >> this cannot be open season for hackers who can make money

off of a threat even if they do not go as far as crippling the entity as with colonial they did not. shery: we will cross to our cybersecurity reporter. what is the government doing now? >> president biden released an executive order that was intended to address some of the cybersecurity weaknesses in the u.s., particularly in the federal government. it called for strengthening the security and modernizing systems across government agencies. it also calls for more information sharing between the public and private sector, which is relevant in this case because colonial is a private company. for contractors who work with the government, private companies will be required to report breaches that could affect federal government systems. haidi: in terms of how much

investment there is already in this area, as it seemed to be a huge gap and that is why we see hacking's like this happen or is it the digitization of the technology is leaving the spaces open? >> i think you are right on that point. there has long been calls to make congress a more sustained investment in cybersecurity. sometimes after major incidents, they will be a lot of resources but there has not been the kind of sustained money people would like to see in this. what is difficult about this problem is while the department of homeland security can work with and provide help to critical infrastructure operators in the private sector when they ask for it, companies are responsible for their own cybersecurity. critical companies like banks who thought we have a lot of

money, we might a big target, invested a lot earlier on in cybersecurity. there are a lot of other companies that before ransomware did not think they would be the first targets of hackers. with ransomware spreading, everyone is a target and it is starting to feel like companies who have or trouble affording it need to shore up there networks. shery: president biden did seem to be careful in putting the direct link to russia. what do we know at this point? >> we know there is a group of criminals we believe are based in russia that are responsible for this attack. the fbi has attributed them. we do not know any links between them and the russian government. in russia, there often is a blurry line between what is done by criminals and the government. we will in coming days be looking for any clues if there's

was -- if this was just criminals or at the behest of the kremlin. another issue it brings up is the question of safe harbors. there is significant pressure in washington for the government to crack down on other countries providing safe harbors to criminal hackers and not helping to ensure they are brought to justice. shery: how consenting is it many analysts say this was not a sophisticated attack but it was able to cripple parts of the u.s. energy network? >> this is really concerning. the u.s. needs to get to a point where our critical infrastructure is protected and simple criminal tactics cannot shut down u.s. critical infrastructure. it is also concerning in the context of other hacks we have seen the biden administration amidst a sprawling cyberattack

from russia, managed 10 trade 100 private sector companies. after he took office, there were china linked hackers who used vulnerability and microsoft exchange software to hack into organizations. it definitely seems the u.s. is not prepared and needs to take significant action to shore up its infrastructure. haidi: our cybersecurity reporter in washington. let's get morning calls ahead of the asia trading day. sophie is in hong kong. we continue to watch of situation in taiwan. -- watch the situation in taiwan. sophie: this week, sean darby and team taking a look under the hood for taiwanese stocks. sending the index below some key support levels. prior to this decline, we had seen the rise be accompanied by

an increase in margin debt. this is excess money supply. jeffrey's notes it was inevitable will as a at tate overland fundamentals. -- inevitable as -- looks excessive compared to improving earnings outlook. darby and team reckoning the broad economic recovery warns a bullish raising. in the near term, looking to see if the government will abate the pressure. confidence has been rattled. shery: we will be watching the open in about two and a half hours. coming up, losses at airbnb ballooned in the last quarter. we will assess the lingering effects of the pandemic with ceo brian chesky. this is bloomberg. ♪

haidi: airbnb beat analyst estimates for bookings in the third quarter, reflecting pent-up demand for travel after a year of restrictions. emily chang is standing by with airbnb ceo. emily: thanks so much. brian chesky with me now. thanks for joining us. you said the recovery has

exceeded even your internal expectations and i am curious what you thought this quarter was going to look like and how different it actually looks. brian: we were not expecting growth booking value to be as strong as it was. it was more than 50% higher. we were expecting a strong quarter but the travel company to grow in pandemic, that certainly was a pretty good scenario for us. the other thing we are seeing is a lot of really interesting breaches. long-term space, two years ago, 14% of our business was for people staying longer than 28 days. now, that is a quarter of our business. 24% are staying 28 days or longer. we are not just in the business of travel. we are in the business of people living on airbnb. emily: let's talk about how big

the rebound is that is coming. we have heard talk about the roaring 20's. how would you describe what you are expecting to see over the next few weeks? brian: i would describe something very similar. what i said is i think this is going to be a travel rebound like we have never seen. probably going to be a travel rebound unlike anything you have seen in a century. what we have seen is travelers in the united states over 60, in february and march as they study getting vaccinated went up. in countries like the u.k. where restrictions were lifted, looking shot up. the cdc said today if you are vaccinated, you can resume activities you were doing before the pandemic. all of these data points are indicators we think travel is going to come back stronger than ever. we think we are going to be a

beneficiary of this trend over the coming months. we are very bullish on it. emily: you have reiterated travel will never be quite the same. i interviewed the ceo of expedia and he pushed back on that. he said national parks are nice but i think cities, hotels, business travel fully rebound. how do you respond to that? brian: i would say first of all of that the world is never going to look like it did before the pandemic. that means i don't think travel is going to look like it did. the data is bearing that out. number one, we commissioned surveys across the world and people said travel is the activity they miss the most. business travel was the type of travel they miss the least. business travel is never coming back the way it was before the pandemic. it is just not coming back like it was before the pandemic. the reason --

they will be a shift from business travel to leisure travel. the kind of business travel that will emerge is the kind we are benefiting from. we have a huge percent of our nights booked in cities longer than 28 days. people are working remotely but they want to go back to the headquarters for weeks at a time. we think that is a big trend. let me talk about other trends i think are here to stay. guests around the world are more flexible about where they travel and when they travel. a world where we can work on zoom is a world where we can work anywhere. people are not just going to travel to the same 20 or 30 cities. they're going to travel all over the world. length of stay is increasing. two years ago, 14% of our business is over 28 days. now it is 24%. people can travel any time. in february, we launched a flexible date feature. instead of adding exact dates,

you could say i want to go anytime this summer. we have had nearly 100 million searches using this new tool. just in february. what that means is people are more flexible about where they travel. there is a shift from mass travel to meaningful travel. the last thing i will say is when borders open up and people go back to cities, we will do quite well as well. emily: let's talk about borders opening up. you have data about u.s. travelers to europe. the situation in europe still volatile. i am curious what visibility you have into your business in asia and when the international rebound is coming. brian: there are certain countries doing really well in europe. the united kingdom is growing quickly. france, grown quickly. spain now rebound and -- now rebounding and growing quickly. we have seen a lot of countries in the e.u. growing.

initially with mastic travel, people traveling in their own country. now we are starting to see borders opening up. asia is a little behind. north america ahead. followed by europe, followed by the rest of the world. i do expect asia to be a little bit further behind. emily: you have launched your biggest marketing campaign in a year to attract more users. i am curious how many hosts have signed on as a result of the campaign and these commercials that i have to say you pull at your heartstrings. brian: it is funny you mentioned the commercials. we did our first global brand campaign in five years. they feature real photos of real guests on real airbnb trips. we yearn for things we miss. being with our friends and family and having meaningful times together. that is what airbnb is about.

additionally, we are seeing elevated traffic levels of perspective hosts coming to airbnb. on may 24, we are going to unveil our biggest upgrade to the service. don't have any data to report on the number of new listings right now but i am optimistic about the elevated traffic we are seeing. we will continue to make it easier for people. if you list on airbnb, 50% of people get a booking within four days. emily: so let's talk a little more about host retention and some of your strategy because expedia and booking are coming directly for your hosts. expedia has commercials targeted directly at poaching airbnb hosts. what new incentives are you offering that you have never offered before? how do you plan to fend off this competition and convince house to stay and join?

emily: i think it is good to back up -- brian: i think it is good to back up and say what we do is quite different. our competitors are focused on property managers and hotels. we have 4 million hosts. three and a half are everyday people. we provide the demand they need. many of the tools we provide allow them to host and they would never be able to host without airbnb. the best way to help them is to get them bookings. i say we are going to have a lot more everyday people. as we make airbnb easier to use, we create millions more over the years. people come to airbnb because they have the individual hosts that offer something unique and you cannot get that anywhere else. emily: you talk about hosts -- travelers leveling -- travelers living on airbnb. as we come out of the pandemic, is that an activity traffic you expect to see drop off? brian: no, i think that is a

long-term trend. i think traveling and living there is long-term. right now, you are seeing a lot of people live on airbnb. that is before borders open up. the moment borders open up, now people can live in another country for a month or two at a time. there will be enough to continue to buoy this trend. a quarter of our business is living. i'm sure if you have me on years from now, we'll be talking about much higher numbers. emily: as you alluded to, your reveal of what you call the most comprehensive update to the platform in 12 years, what can you share with us right now about what that is going to look like? brian: we have been really hard at work since the ipo. i did not want us to rest after the ipo because we knew after we went public, a lot of hosts depend on airbnb and we will have a travel rebound unlike any

other. what we have done is a comprehensive upgrade. we are making it simpler and more inspiring. we will have a more inspiring guest experience. we will have the tools to make it easier to become a host and make you more successful. we will have quite a few updates will be able to share on may 24. emily: i will be watching. thank you, brian chesky. ceo of airbnb. i will send it back to you. shery: emily chang. be sure to tune into bloomberg radio to hear more from the big newsmakers and get analysis from the daybreak team now broadcasting live from our studio in hong kong. plenty more ahead. stay with us. ♪

shery: here is a quick check of the latest headlines. disney fell after it reported fewer streaming customers than expected last quarter. disney plus subscribers came in lower than forecast as production delays caused by covid-19 meant a lack of fresh content. the ceo says bookings have

started to recover. >> today with the cdc's guidance in terms of the relaxation of the masked requirement, we think it is going to be a big catalyst for growth and actually being able to put the number of people in our parks we are more accustomed to. it is very positive. our future bookings are looking great. in walt disney world, they are back up the 50th -- to fiscal year 19 levels. shery: the value of new business up 19% in the first quarter. new business value rose to over $1 billion with new business margin up four and a half percentage point to 62%. aia says mainland china remained the largest contributor. boeing got a lift as regulators signed off on repairs to its grounded 737 max models. the move paves the way for deliveries to resume after a weeklong halt and is crucial to

financial turnaround. repairs centered around a flight deck electrical issue that has sidelined more than 100 max jets for more than a month. binance holdings is under investigation by the u.s. government. sources say officials are looking for people with insight into the firm, which has not been accused by wrongdoing. binance has been linked to funds tied by criminal activity more so than any other crypto exchange. haidi: speaking of crypto, we continue to see these developments when it comes to elon musk and his ever-changing relationship with the cryptocurrency universe. yesterday, we sell that move in bitcoin. muska said -- elon musk said

tesla would stop accepting bitcoin for payment. he earlier said this does not mean he does not believe in crypto. he strongly believes in crypto, but it cannot drive a massive increase in fossil fuel use. it raises a really interesting conversation first about the fact that elon musk is the person behind tesla who obviously knows about these environmental issues and challenges being a huge proponent of cryptocurrency, which experts say is he usually energy intensive -- is hugely energy intensive. shery: what changed in the couple of months when he bought one and a half billion dollars of bitcoin. take a look at what cryptocurrencies are doing. going continues to be -- bitcoin continues to be under pressure. that is it for daybreak australia. daybreak: asia is next. stay with us.

this is bloomberg. ♪

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haidi: a very good morning. we are counting down to asia's major market open. shery: welcome to the daybreak asia. asian stocks looks set to rally on the back of a gangbusters session on wall street. alibaba is planning to turn things around after quarterly earnings it would rather forget.

plus, find out why minister jane hoon believes australia's budget will help women. we will hear her views on why women have a lot to gain later in this hour. haidi: setting up on this friday session of the week. let's take it over to sophie in hong kong. sophie: going into the friday session, asian stocks erasing yesterday's gains. more than 10% below the peak we saw in february. taking a look at asian futures, they are broadly pointing to gains. creeping higher after we saw u.s. stocks snap a three-day decline. we have nikkei futures in chicago halting a four day drop. time one very much a focus after the drop we saw for the taiex. demand for chinese stocks, the

china gauge entering a second bear market in just over a year. saying this could be a buying opportunity for chinese stocks on the earnings growth outlook and the relative cheapness of chinese equities compared to the regional peers cared commodities at the heart of the inflation debate. commodities ending the week with singapore eyeing the 200 level. wti below $64 a barrel. markets ss inflation exide e. in the treasury market, futures taking slightly higher after cash bonds held on to gains. jeffrey's strategist letting the outlook for tragedy is still murky. we see the inflation risk premium. likely to start thinking about 2% on the u.s. 10 year and two and a half percent on the 30

year. shery: despite plenty of concerns around inflation, our next guest does not see that signaling an end to the bull market. joining us is the original cio at calvin management. a lot of -- what happens if this lasts for longer than previously thought? last time when we had this recovery in 2009 after the financial crisis and commodities were surging, inflation lasted for two years with raw materials prices rising. >> this time around, it is quite different. last year during the year, you had china stimulating the economy dramatically and china accounted for most if not for all of the rise in commodity prices during that time. this time around, we have a synchronized global coverage

from the covid-19 recession last year. this is not expected to last because we think the concerns are likely to fade away from 2023 onwards. on a short-term basis, -- we don't see this is -- think this is likely to transition into a longer-term increase in prices. shery: are you starting to position for higher inflation? are you buying into those reflation trades? >> yes, over the next 12 months, we expect a rise. we are looking at positioning into some instruments. these are likely to trade better. haidi: what about tech? we see this fading correlation between what you are doing and the selloff in tech, which tells

us this is may be more to with fundamental valuations. where the opportunities across the tech sector for you know? >> i think the tech sector uncertainty will continue for a wild. you have the regulatory concern coming from the u.s. side kid where the tech sector is concerned, the chinese stocks look pretty attractive. on the evaluation and growth basis, we think they are far more attractive than the u.s. tech sector at the moment. haidi: which gets me to names like alibaba. when you talk about the attractiveness of the chinese tech sector, does that mean usm regulatory overhang is largely over or the risk has bottomed out? >> we do not think it is over at the moment, but we think most of the uncertainty -- i think the uncertainty relates to the china punishment -- the kind of punishment that the chinese

stocks are having. pretty strong morning to the inclusivity platform in the foreseeable future. on a short-term basis, is overhang is likely to weigh on the crisis. haidi: always great to have you with us. still ahead, the australian government delivering a $3.4 billion aussie budget. we will discuss labor reform with the minister later this hour. alibaba pledging new investments into new growth areas after

posting its first loss in nearly a decade. we'll be breaking down the earnings next. this is bloomberg. ♪

vonnie: this is daybreak: asia. china has pushed back on a report it is considering facing -- considering replacing its economic envoy to the united states. he recalls -- nine the u.s. trade representative says she expects to talk with the top trade to go she had her soon. australia says it is ready to resume dialogue with china. ties are strained. the foreign minister says canberra seeks a constructive relationship with the beijing and is open, clear and

consistent about its challenges. tensions have escalated after australia accused china of human rights abuses and calls for an inquiry into the origin of covid-19. the european union is accusing russia of greg really trying to take over parts of eastern ukraine. in a document shared with member states and seen by bloomberg, the european union says kremlin tactics include organizing illegitimate elections and issuing passports to locals. the kremlin says it is not planning to absorb anyone. u.s. house speaker nancy pelosi says companies such as colonial pipeline should not pay hackers. colonial pipeline paid nearly $5 million in cryptocurrency to eastern european hackers last week. the pipeline shut down triggered panic buying of gasoline in parts of the eastern united states. >> this cannot be open season

for hackers who can make money off of a threat even if they did not go as far as crippling the entity, as with colonial, they did not. vonnie: global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: shares of alibaba slumped more than 6% in new york after posing as after post -- after posting its first net loss in nine years. our chief north asia correspondent is looking at the results and joins us from hong kong. what stood out to you? >> alibaba is trading profit now for growth later. at the backdrop of all of this is the regulatory scrutiny and crackdown on alibaba as well as 33% on ant group.

alibaba, we knew it was going to be a tough quarter because they took the fine a got from the antenna -- they got from the anti-monopoly regulator on that quarter. it drove down net income. it was a net loss. the first time in nine years for jack ma's giant e-commerce company. we were expecting a bit of a net profit. it came in worse than expected. we have a terminal chart that i want to bring up ed show how alibaba had grown since 2012. the last time it had the net loss as it was restructuring ahead of the new listing. bloomberg terminal 1544, which it kind of sites it's a legal

settlement bill on the far right side of the chart. you can see the net income growth had been growing quite steadily until now with the regulatory uncertainty. on the revenue side, the company is doing well. we sell that revenue was better than expected. 64% growth year on a very -- year-over-year. last year was hit so hard by the pandemic in china. they are forecasting sales to rise at least 30% in the current fiscal year. that is a deceleration from the 41%. the key question is, we are they going to invest and by how much are they going to invest in new areas? the ceo says they are going to plow all incremental profits back into technology and hotly contested areas like immunity finance. bloomberg intelligence's take is

as they invest in merchants and users apart to fend off competition, the investment in innovation may drive higher user monetization over time. the concern investors had overnight on wall street with the shares sinking 6.3%, how much will this new investment hurt margins? haidi: what about ant? you still expect to see the regulatory overhang, right? >> absolutely. alibaba wants to cast a picture they are moving beyond the regulatory scrutiny and the four month long anti-monopoly investigation. in some ways, they are moving on. they paid the fine and now they have to have their ratifications. for ant, all of the security

is still there. what happens to the data? it is likely to be regulated by a bank. what is going to happen to the biggest money, lending? it has to be decoupled from the payments platform. ant in the december quarter -- ant reports a quarterly results one quarter lagging alibaba. we get ant's number a quarter late. up 50% from the previous quarter, contributing nearly 70.2 billion yuan to alibaba was earnings -- to alibaba's earnings. it shows the power of earnings growth and contribution that ant group in its previous iteration before the downsizing that is happening right now could be

contributing. forward earnings from ant will likely be much less. back to you. haidi: our chief north asia correspondent with the latest on alibaba. tings then securities will be joining us later. plus, avina choi is on bloomberg markets china open with her view. the u.s. takes its biggest steps toward -- back toward life as we know it. with the cdc announcing fully vaccinated people can ditch the mask and social distancing. this is bloomberg. ♪

shery: we are counting down to the start of trade in tokyo and seoul.

in korea, the government has unveiled a $450 billion spending plan to build the world's biggest chipmaking base. we will be a watching samsung and sk hynix who are weeding investment. the finance ministry will sell 400 billion yuan of 50 million bonds. this is the last day for companies to report first-quarter earnings. some companies announcing our korean air, samsung and netmarble. in japan, tons of earnings coming out including from honda, toshiba. on the virus front, japan has recommended stronger virus measures in five more prefectures. organizers of the tokyo olympics are seeking to ease concerns over the potential spread of infections when athletes and delegations arrive.

organizers say no cases of new coronavirus emerged during the recent test events involving more than 700 athletes and 6000 staff. japan is a specter to host more than 6000 -- for the games. haidi: the disney ceo says new guidance for relaxing mass requirements could be a big catalyst for growth. the company reported second-quarter earnings that beat estimates on revenue and earnings per share. disney plus subscribers felt short of expectations. >> we have now launched in a number of markets across the world. we have not been disappointed yet in terms of the uptake in subscribers in each of the markets we have grown. we have executed a little bit differently in each pete's -- each piece of the world.

regardless of that diversity of how we have gone to market, we have been drilled both across -- we have been thrilled across our general entertainment platforms as well as our disney plus platforms. we are very happy with it and the uptake across all markets. >> you ran the park for many years and we are hearing so much talk about a huge summer surge, a roaring 20's like surge. how big a surge in summer demand are you expecting to see? >> we are really encouraged by what we are seeing in not only current attendance but by bookings. we think it is going to be a big catalyst for growth and actually being able to put the number of people in our parks we are more accustomed to, it is very

positive. future bookings are looking really great. in walt disney world, there gupta fiscal year 19 levels, which is pre-pandemic that would be the greatest rounder of all, in terms of the assurance disney has built up with the guests that we will be able to rate responsibly and provide those magical experiences. there is a craving. i saw this on main where we opened up. there is a craving not only for our guests but are cast to come back and be a part of this and experience the magic with your friends and family. we are glad to be able to bring people back to work and please our guests at the same time. >> as you mentioned, there is big news from the cdc. we are still waiting for children to be vaccinated. what you start letting employees go mask free in the park or customers in general? >> we are still digesting the

guidance that was given a few hours ago, but we think that is in the near future for us. it is going to make for a more comfortable experience this summer in orlando. >> let's talk about florida because florida has lifted all restrictions and i am curious how far away you are from 100% capacity and will you get to 100% before the end of the summer? >> there is a variety of guidance we have taken since the pandemic started. we have national guidance from the cdc, health officials from the state, governor of the state, local mayors and everybody comes to what is seemingly the same realization. the last couple of weeks, that it is safe to reopen. people don't need to wear masks. social distancing requirements are evaporating before our eyes. that gives us the ability to

create the sense of community in our parks and bring back some of the experiences. we have had to put a hold on them like parades and fireworks and meet and greets with our characters. that is a part of the experience and we are thrilled the cdc has come into this point given the increase in vaccinations, the decline in case rates and a general sense people are now willing to travel. we see that consumer confidence in our research growing. mostly to be able to come back to a disney park and feel comfortable doing it. shery: disney's ceo speaking to emily chang. let's delve into the cdc guidance. fully vaccinated people can ditch their masks. it is a turning point in the u.s. fight against covid. it comes as caseloads fall and vaccines rise. it does feel like a momentous

occasion for the u.s. or perhaps some semblance of normalcy will return. >> yeah, i think without a doubt, this is the most significant moment since the first vaccines were pulled out in mid-december. it took a lot of people by surprise today. they were not that many people who were expecting this announcement until there were some rumblings earlier in the morning. while this is being presented as a mask issue, what is really behind this vaccines -- this is vaccines. one is that they work. as the ceo was saying, caseloads dropped. deaths are dropping. hospitalizations are dropping significantly. the second thing is there are

fewer people getting them. there is a lot of pressure on president biden to start showing some concrete results to getting vaccinated. so if you can show some benefit to getting it, the hope is that more people will get it. biden was clear about that in his to eat. if you are vaccinated, take off your mask. if you are not, where it. -- wear it. haidi: talking about these havens that are finding the reopening harder. the -- what warnings or cautionary tales to they present the rest of the world? >> it is hard to tell right now. it is kind of a case of good news in that these places --

hong kong, singapore, australia, new zealand -- they have done exceptionally well by being exceptionally aggressive in keeping the rest of the world out now the rest of the world has come to a point where vaccines are working. they are looking at reopening. at the same time, the rest of the world has learned to accept a degree of risk. people will except in the u.s., 30, 40 thousand new cases a day. i think if these covid zero places want to rejoin the rest of the world, they will have to accept a larger degree of risk as well. shery: ian fisher in new york with the latest on the covid-19 pandemic around the web. plenty more to come on daybreak: asia. stay with us. this is bloomberg. ♪

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>> this is "daybreak: asia". i am vonnie quinn with the first word headlines. that israeli military says both air and ground troops are attacking the gaza strip, this as u.s. president joe biden says he hasn't been insignificant overreaction in the israeli government's response. biden singled out rocket attacks from gaza which he says are " indiscriminately firing at population centers." it threatens to become an all-out war that could draw and

other regional players. u.k. prime minister borris johnson says he is anxious about the spread of a covid-19 variant from india. data shows cases in the u.k. of the new strain more than doubled in the past week. starting next week, people should be able to meet indoors, at home, pubs, cinemas will also reoffend. the philippines is easing virus carbs in its capital. they will shift to the second lowest tier of restrictions since may 15. however, event but typically draw large crowds will still be banned. global news, 24 hours a day, on air and on bloomberg quicktake, powered by over 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. ♪

haidi: let's take a look at markets. sophie: we have futures pointing higher for asian stocks. end of the correction thursday after the original index wiped out year-to-date gains. nikkei futures are higher. markets are set on the government's recommendations for more virus measures to be had in five additional prefectures. check out offshore trading for the korean won, hinting at upside bias for currency, also reflected in options trading. currency markets in new zealand, we are seeing the kiwi bounce off the 15-day line. the aussie dollar is on the back foot, set for the worst weekly drop in months. pulling up the charts of a terminal, taiwan is in focus we will be watching to see if the government will move in to support stocks, having seen a steep drop in the currency exacerbated by the unwinding of

the most that since 2018. we saw the level of market leverage rising nearly 50% of this year. jeffries pointing out this week that the pickup in financing was inevitable as risk appetite overran fundamentals. but sean darby and team at jefferies saying the selloff looks excessive in light of the earnings picture. first-quarter results, we are also watching shares of the stock after we saw the foxconn results. shery: right, south korea has unveiled ambitious plans to build the world's biggest chipmaking base over the next decade. bloomberg technology reporter joins us from seoul. south korea is joining perhaps china and the u.s. in the global race to dominate key technologies. >> yeah.

the race for this technology is intensifying. so in the agenda revealed yesterday, they are pledging to build a semiconductor factory. it will bring together chipmakers, suppliers throughout the chip business. they will roughly spend $450 million to build the roads biggest chipmaking base by 2030 . both companies are vowing to invest in the semiconductor business, like foundry and memory chip. hynix will spend almost

$1 billion. it will send another $100 million to build another four clamps. haidi: what other support measures are we seeing from the government to support the industry? >> there are wide-ranging policies that the government wanted to support. the government will improve test rates for cheap already and expansion and offer 1,000,000,000, won in loans.

money to attract investment. it would also help train more than 30,000 chip experts for the next 10 years, and contributed 1.5 trillion won toward r&d. the korean government will start discussing with lawmakers having special legislation to largely support the chip industry. haidi: our reporter, about the new measures exited from the korean government. coming up next, australia's minister for economic security joins us to discuss the initiative to empower women in this week's budget and beyond she will be with us from melbourne. this is bloomberg. ♪

haidi: was to his government socks use this week's budget to gain lost ground with women. they released a statement addressing the safety, economic security and status of women in australia. joining us is australia's minister for women's economic security, jane hume, and also minister of financial services and the digital economy. great to have you with us. let me start with the so-called women's targeted policies in the budget. the one about childcare seems extremely restrictive in terms of the number of families that it will help.

you have to have more than one children in day care, under the age of six. how far does this really go to address the structural problems of closing the wage gap and getting more women back into the workforce? jane: the $1.7 billion we have dedicated toward childcare is on top of the already 10.3 billion we are already spending on child care and in fact only a couple of years ago, we reformed the childcare system so that low and middle income earners particularly those that are working or studying or doing volunteering work, they can save 85% of their childcare costs in the form of a subsidy. but we realized that for the secondary income earners in your family, it affected the marginal tax break to such a high rate that there was no point returning to work.

obviously secondary income earners tended to be women. both families that had children and day care that tended to take a burden of the cost of childcare. so this $1.7 billion is targeting those families in particular, to encourage those women to take on those extra days and extra hours, and fully participate in the workforce as much as they can and secure the economic future for themselves and their families. haidi: according to analysis done based on parliamentary budget office figures, the figures by the labour party would be more beneficial in terms of rebates for parents of one child or more, compared to the government's policies. is that something you expect to become an issue as we get closer to the election the labour party's policies cost almost twice as much as those of the coalition.

you could see a family that has a combined income of around half a million dollars receiving subsidies of about $50,000 and they don't even have to be working parents. we don't think that is fair. we believe a co-conta mission is appropriate, and people that can afford -- we believe a co- contribution is appropriate, and people that can afford to pay for childcare should pay. we would love to see them take on extra days and extra hours to improve the female participation rate in the workplace. shery: the government also allocated more than $20 million to address sexual harassment, but some say that perhaps this is not enough. with the measures on childcare, as well, do you feel like the government has done enough, or do you feel like there could be more to do? there was an enormous body of work done by the sexual discrimination committee in their respective work report and we are

responding to that report with a 20-plus million dollars initiative to implement their respect at work report. it is really not just about government implementing it, it is about the private sector. part of the implementation will be assisting the private sector with tools and information and programs to improve sexual harassment and respect in the workplace as well. shery: in helping women to retire with more money and boost their retirement savings, you have also implemented some new measures, but some say that paying superannuation on the paid parental leave scheme would be the most obvious way to breach the gender gap. why not do that? jane: there are issues you have brought up. the review suggested that paying parental leave and also abolishing the 450 rule are

both significant issues of equity but would not turn the dial on adequacy. there is more to be done in that space. abolishing the 450 rule i think is more important. it is $450 a month, and the employer is not compelled to pay them superannuation. but has been around since 1992. the reason it is $450 a month is because 450 times 12 is $4400, in tax-free threshold. of course the tax-free threshold is now over $18,000. so it is an anachronism from a long time ago. we could not change that. we have now got rid of the insurance premiums and cap to them. and also because of the administering of non-businesses

to pay superannuation on small payrolls. that is gone now that we have introduced it in the payroll. now we can allow superannuation to be truly universal for the first time, and we know that this proportionately affects women. the 300,000 people affected by the 450 will, 200,000 of them are women. they tend to be located occupations, aged care, contract workers, cleaners. i am very proud of this policy. it is something i've fought for for a long time even before i entered politics. on parental leave, we adjusted that team last year so it can be split between parents, and because of covid, we didn't see that policy manifest. we would like to see the outcomes of that policy and see how it has been implemented and how it is working before we make any further changes. but it is certainly not off the table. haidi: i wanted to talk to you

about social harassment and sexual assault issues and how that fronted such a huge public outcry, rightly so. you mentioned the role of the private sector, by am wondering, given that so much of that started with the revelations as to rape allegations in parliament, sexual-harassment allegations in the core of government, how much of a role does the government still need to play in times of setting the right tone? it is one thing to get women back into the workforce, it is another to make them feel safe and productive. jane: everybody has a right to be safe at work and feel safe at work. part of that should be the gold standard in that. we are reassessing our own processes and/or on programs to make sure that women feel supported in parliament and in the public service. but it is a private sector issue as well. i had a 20-plus year career in the finance industry before entering politics, and

personally i felt the weight of gender inequality far more in the finance sector than i ever have in politics. so it is important that we rolled that out across the economy, across all businesses, not just government. but it is not just about feeling safe at work, it is also about feeling safe at home, which is why we have a $1.1 billion safety package for women, particularly focused on those fleeing domestic violence, and also safety online, with some expanded roles for our e-safety commissioner to make sure that women are not subjected to online abuse and revenge porn. shery: this portfolio is introduced in the wake of the backlash against all the incidents i just spoke about. how problematic is it that some of these issues are seen as women's issues? as childcare really a women's issue? is and is more of a broad economic issue that has benefits

to everyone if it is properly addressed? jane: certainly, when women's economic security is enhanced, australia's economic security is enhanced. more than 50% of the population. that said, childcare is a family issue that women do disproportionately take on the burden of the cost of childcare and the flow and effects of that india before dissipation. but we know we can increase female participation in the workforce with 5%, we could add $20 billion to the gdp over the next five years. that is an extraordinary amount and something we would like to see. australia has one of the most educated female workforce is in the world, yet we have one of the highest rates of part-time work. some of that is policy-driven. some of that is social norm. we would like to make sure we remove those barriers, to women

participating in the workforce so they can enhance their lifetime earnings and secure their economic futures. shery: it was great having you on. thank you very much for joining us. australia's minister for women's economic security and superannuation financial services and the digital economy, jane hume, joining us from melbourne. be sure to tune into bloomberg radio to hear more and get in-depth analysis found that daybreak team, broadcasting from hong kong. listen via the app radio plus or bloombergradio.com. plenty more on ahead. stay with us

sheri: airbnb first quarter bookings beat analyst estimates. the ceo to bloomberg that the post-pandemic travel rebound will be unlike anything seen in a century. >> we were not expecting gross bookings value to be quite as strong as it was, more than 50% higher. i think we were expecting a strong quarter, but a travel company to actually grow in the midst of a pandemic, certainly that was a pretty good scenario for us. the other thing we're seeing is that a lot of really interesting green shoots. for example, long-term stays. the local years ago, 14% of our business was travelers staying

longer than 28 days in an airbnb. now that is a quarter of our business. 24% are staying 28 days or longer. that means we're not just in the business of travel, we are also in the business of people living in airbnb's. >> let's talk about how big their rebound is that is coming. we have heard talk about the roaring 20's, a huge summer surge. how would you describe what he are expecting to see in the next few weeks? >> i would subscribe something similar. what i have said is that i think this will be a travel rebound like we have never seen. i have never seen in my lifetime. probably in trouble rebound unlike anything we have seen in a century. we think travel will come back stronger than ever. certainly will be the beneficiary of this trend in the coming months. we are very bullish on it. >> and yet you have reiterated that travel will never be quite the same. i recently introduced the ceo of

expedia, and he sort of pushed back on that. he said national parks are nice, but i think cities, hotels, business travel even willfully rebound. how do you respond to that. >> i would say first of all that the world is never going to look like it did before the pandemic. that means i don't think travel is going to look like it did before the pandemic. that data is very bad out. number one we commissioned surveys across the world and people said travel was the activity they missed the most. business travel was the travel they meet the list -- missed the least. it does not mean business travel is not coming back, it is just not coming back like it was before the pandemic. the reason why is the bar to get on a plane to go to a meeting is much higher. there will be a shift from business to leisure travel. the kind of business travel that will emerge is the kind we are benefiting from. for example, we have a huge

percent of our book in cities longer than 28 days. people are working remotely, but they want to build back to headquarters for weeks at a time. we think that is a trend. and we talk about some other trends i think are here to stay. guests around the world on airbnb are more flexible about where and when they travel. a world where we can work on zoom, is a world where we can work and live anywhere. that means people are not just going to travel the same 20 or 30 cities, they will travel 1000 cities on over the world. length of stay is increasing. two two two years ago, 20% of our business was 28 days, now it is 24%. people can travel anytime. in february we launched a flexible feature where we could ask you, when did you want to travel? you could say a weekend, a week or a month and a time this summer. we have had over 100 million searches using this new tool just since february.

that means people are more flexible about where they travel. there is a shift from business travel to leisure. the last thing i should say, when borders open up and people go to the cities, we will do quite well, as well. >> let's talk about borders opening up. you got new data on u.s. travelers to europe. the situation in europe still really volatile. i am curious what you are seeing in europe and what visibility you have into asia, and when the international rebound is coming. >> there are certain countries doing really well in europe. the u.k. is growing quickly. france, growing quickly. spain, now rebounding and growing quickly. we are seeing a number of countries in the e.u. that are really growing. one of the things is initially with domestic travel, people traveling in their own country. now we are starting to see borders open up, and starting to see a huge rebound in europe. asia is a little behind. think of north america ahead,

followed by europe, followed by the rest of the world. i expect asia to be a little further behind. shery: airbnb chief executive officer brian chesky, speaking to bloomberg's technologies emily chang. you can see the airbnb stocks right now under pressure after the company's loss ballooned as a result of the payment of debt they took on under the cri. coinbase says it is planning to keep making acquisitions, warning that investors should not expect major profits while it focuses on expansion. in its first report since listing, coinbase says it's all profit come in slightly. above expectations it ended the quarter with nearly $2 billion in cash and raised its four-year forecast for user transactions, with plans to increase marketing and m&a.

binance holdings is under investigation by the u.s. government as it tries to clamp down on illegal activity in the largely unregulated crypto market. sources say officials are looking for four people with insight into the firm which hasn't been accused of wrongdoing by federal agencies. haidi: let's look at some of the stocks we are watching heading into trading this friday. looks like a recovery rally on the cards when it comes to major market opening. what are you watching? sophie: in japan it is the last day of the earnings calendar. companies like toshiba on tap. nikkei futures are higher. volatilitybets did ramp up. switching to the terminal, the topix capped its worst drop since june. the boj scratching their head as to what could be the reason for ramped up purchases. ok's coming up.

"-- tokyo is coming up. this is bloomberg. ♪

♪ shery: welcome to daybreak asia. haidi: asia's major markets have just open for trade. our top stories this hour. asian stocks expected to rally. china's most widely followed benchmark tumbles into a bear market. coinbase fluctuates.