>> very good morning and welcome to daybreak australia. sophie: we are counting down to asia's major market open. >> good evening from bloomberg's headquarters, and new york i'm shery ahn. technologies shares lead shares as inflation shares are easing. haudi: rebounds as iron ore

prices hold steady with how much control china can exert. shery ahn: the u.s. warns people not to travel because of a fresh flow of confidence ahead of the olympics. take a look at what wall street is doing now, u.s. futures are gaining a little bit of ground after the s&p 500 rose in their new york session. almost all grouped in the s&p 500. tech led the gains. climbing as inflation fears ease. nasa 100 outperformed the index out the closing of the two week high. crypto reeling to stocks near the session highs after elon musk tweeted that he is in talks with bitcoin miners about their energy usage. we are seeing wti coming online after a little bit of pressure, climbing the most in a month. they remain in negotiations

aimed at reaching a deal to end u.s. sanctions. let's see how we are standing up for the asian open. here is sophie in hong kong. sophie: looking at a mixed start for asian markets after we see the index with a little change as the gain from cyclicals was offset by the drops we saw in tech shares. in the currency space, the yen is off after edging close to the highway we saw in february. the aussie dollar is holding onto the bounceback we saw late monday, after a falling with a steep drop in iron ore prices. we are watching minors at the aipac materials index cap a four-day drop on china's warning around commodity speculation. is the rally we have seen in metals and iron ore prices to a 2019 high. we have seen little change on the month. a little move in either direction by the most since 2019.

but overnight we did see copper reclaim some ground on that softer dollar as well as moderating inflation anxiety. shery: let's discuss all to do with inflation. three top federal reserve push back against the spike. but a spy could become a lasting trend of the u.s. economy reopening. kathleen hays joins me here in the new york studio with more. who exactly spoke, and is just -- and is this part of the narrow live -- narrative that inflation is transitory? kathleen: we are seeing signs inflation is moving up faster and could stay up longer than economists and then federal reserve has said. let's start with the fed vice chair -- she's on the board of governors. some people think she could be fed chair. the board of governors is saying today that she does expect to see price pressures. they go along with the

reopening, but they will be temporary. she thinks that they will not upset inflation expectations in a permanent way. here's what she said. >> if we saw development pushing inflation up, i would not expect that to get embedded in the ongoing inflation rating. of course if we did see inflation that moves persistently and maturely above our goals in a manner that also threatens to have some impacts on the long-term inflation expectation, we have the tools and the experience to gently guide inflation back down to target and no one should doubt our commitment to do so. kathleen: rafael bostic, the president of the atlanta fed says he does not think any price increases will be enduring. what has been happening is the demand response, people buying more and faster than supply response, faster than bottlenecks and workers, etc., can allow companies to reduce the output scope -- so prices

are going up. he said he also expects the spike to be temporary and some of this will feed through to expectations. since we got the chart up now, let's look at it. the question isn't inflation expectations, it's what the fed is worried about. all three of these numbers have gone up, let's take a look at the white line. we know that the pce year-over-year is at 2.6% now and it's above where the fed's target, but they wanted above target. market breakevens have gotten up to 6.26% in may. but the one that the fed is watching closely is the turquoise line. university of michigan's five-year inflation expectation has jumped to 3.1% from 2.7%. this is the kind of thing when they say inflation expectations are still well anchored as the fed governor did today, some

people say, are you so sure, this is why the fed is going to have to rethink this. heidi: when you take a look across the rest of the numbers, what is the story that has really been told? kathleen: what we just showed you is a very important gauge has jumped and continues to rise. if you want to discount that and says it does not matter, of course they are rising now because people are seeing the prices rise all around them. if companies stop raising prices, it won't be an issue. here's the question with inflation, if you are consumer and thing prices will continue rising, will you say, i guess i better pay more for the house and used car because prices could go up further? that's when you get inflation psychology into the economy. if you are a used business, you say the used car price -- car lot down the street just raised their price.

this is what they are looking for, this is what they are worried about. bloomberg editorial out today saying the fed should acknowledge that it has to rethink its policy. the economy is picking up, the economist say we will have it at a pedal to the metal. it is no longer appropriate. this fed is still seeming to say we are not worried about inflation and we will keep doing what we are doing until the pandemic is over in the economy is on track. haudi: our policy editor kathleen hays with the latest. let's get more from our cross asset editor. we clearly saw that inflation action pulling back going into the u.s. session. is it enough to triple through to the asian trading day? >> by the look of the futures, yes it is. i do think we need to be careful when we talk about being inflation expectations. we just heard from kathleen that inflation is probably rising

more than anyone is seeing. what's going on at the moment, we have seen that breakeven rate, they gauge of inflationary expectations with the market watches coming down. you have seen some of that commodity rally tapering somewhat after china came out and said that it's going to try to curb speculation. however, we heard some of those commodity prices come up last night. the indication is that the market will be opening higher today, but i think we need to be very careful where we talk about any sort of ebbing inflationary expectations. but it's definitely a concern in the future of the market. it's something that investors are watching very closely. you do have those tech shares go up last night. you had tenure bond yields cut down, so they are dropping bomb yields. but i think overall inflation

remains a concern for investors out there. but it has been a very volatile month for stocks as these inflationary expectations have become very entrenched in the market. i think that is where we are going into the end of the month. definitely of concern, but it looks like we are going to start in asia and the green for today. shery: talking about volatility, we can't leave out bitcoin. gtv chart on the bloomberg showing us the swings. we are seeing it a little under pressure, but this is a gain of 16% in the previous session, a loss of 11%, then we saw it rising 8% on saturday. tell us what is the latest on this front, why are we seeing such volatility? >> bitcoin, what can you say? bitcoin is almost anonymous is

volatility. we had elon musk last night come out and say that they are talking to minors about how to make their operations greener, that has become a huge feature of how bitcoin is trading. there are concerns at the same time that the swings based on the tweets are really the only thing that seems to be driving this market at the moment. i think that anything he utters is going to maintain that volatility in an aspect that is definitely getting a lot more headlines. you could say he may be about to break into the mainstream, but he does remain a high risk asset. and i think as we start to see these discussions around the esg aspects of bitcoin, you're going

to continue to see these prices. shery: our cross asset asia editor with her take on what's happening in the crypto world. still ahead, more on those crypto twists and turns out we discussed the outlook with the bank. coming up, the u.s. warns on travel to japan over virus concerns, the advisory comes for the olympics, less than two months away. this is bloomberg. ♪ bloomberg. ♪

>> you're watching daybreak australia. the european union has agreed to new sanctions on belarus after the forced diversion of a ryanair passenger flight in the arrest of a journalist on board. they include banning its airlines for the blocks airspace

and airport. further sanctions targeting alexander lukashenko could also be imposed. russia is backing its allies with the explanation of belarus actions reasonable. iran's nuclear court is tense of fine. president xi jinping talked in a phone call and said there are reasonable demands. the u.s. secretary of state has said a deal is a priority. severally, iran agreed to and extend to an agreement by months, allowing for continued surveillance of its atomic installations. president joe biden is sending secretary of state antony blinken to the middle east to help firm up the cease-fire between israel and the palestinians. lincoln is set to meet leaders in cairo. in a statement biden says the visit would reinforce ironclad ties with israel and rebuild

relations with palestinians after years of neglect. china is pushing back against their court about three researchers who felt sick at a wuhan lab. the paper says the trio worked at the wuhan institute of urology in the head hospital care in 2019. china's foreign ministry that the report is not true and accused the u.s. of "hyping up a lab leak theory." the lab where the first outbreak was confirmed was denied. a petition calling for the resignation of the financial services regulator over plans to tax currency gains has collected more than 200,000 signatures. the regulator said last month that the government had no obligation to the crypto investors. the president plans to impose a 20% tax next year on annual gains of more than $2200. u.s. senator elizabeth warren is proposing to nearly triple the

irs budget to identify wealthy individuals cheating on their taxes. the democratic senator wants the irs to get a mandatory stable annual budget of 31.5 billion dollars and remove the agency from the annual congress appropriation approval process. the treasury says enforcement could capture an additional several hundred billion dollars in taxes. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts and more than 120 countries. this is bloomberg. shery: the u.s. state department has issued a travel warning on japan, showing new doubt about tokyo's plans to host the olympics in less than two months. it comes as health officials warned that under vaccinated areas may be at risk of the highly contagious variant of the coronavirus. let's get more from our senior editor jodi schneider. what are the implications now for the tokyo olympics, given that we are seeing those warnings coming from the u.s.? jodi: we are seeing a concern

about the travel to japan, as well as other countries, but this is a level forewarning, which is a significant warning, which means that the u.s. is actually warning americans not to go to japan. it's a very affirmative step and it's a warning. of course with the olympics less than two months away, it's supposed to start july 23, is is really a blow, also because citizens of japan have said that they don't want to see it. they are worried about the olympics given the covid outbreak, and also because so few members of the population are vaccinated. only about 3% of the population is vaccinated in japan, like in some other asian places. so that is the real concern. they had locked down parts of japan, there has been an emergency warning for tokyo and other areas, but this is

certainly a blow for the u.s. now saying not to go there. shery: we know in the u.s. -- haidi: we know in the u.s. a lot more people are vaccinated. but there are still more concerns about the covid variant. do we see much action being taken against that, and do we see evidence at the vaccine works against it? jodi: the federal health investigators here are really ramping up their surveillance of that variant that first originated in india. there have been some studies that show that it could be twice as transmissible as the variant that started in the u.k., which of course probst -- caused problems in the u.s. midwest and lead to searches there. so far we have not seen that period, the cases have been low in the u.s. and cases are going down generally, but that is a concern, especially if it's that transmissible as is feared, and

this has now become a variant of concern. else officials are really looking into it now. shery: finally, after going through all of that last year with the u.s. infections raging, it seems things are finalizing, but will we see the trend continue? jodi: the vaccination rate is determining that. more than 60% of americans are vaccinated or have had at least one shot. that is leading to these low case lows. the concern is, if you get pockets of unvaccinated people, and unvaccinated areas and you get these variants, that is a concern. but right now there does not seem the concern with people taking their masks off. you can see things going up again because of the high vaccination rates. this cdc is saying they expect their rates to continue to come down. and of course we are seeing hospitalizations and deaths come down in the u.s. as well. haidi: our editor jodi schneider

with the latest. in australia, people are working frantically to find missing links in the growing trend of covid cases after for family members tested positive. victorious chief health officer has warned that one of the infectious people moved around the community with a high viral load. victorian health authority said there would be no changes to vaccine eligibility in light of the new cases as a number of other states move ahead of the national rollout. coming up, eu leaders move to sweeping sanctions on belarus. in the hijacking of the ryan airplane. we have the latest ahead. this is bloomberg. ♪

>> what has happened here is unseen.

>> it's the hijacking of a plane and behaving like that. >> their regime has to understand that this will have serious consequences. >> there is already a package of sanctions. there was a fourth package that i think should be accelerated and is more aiming on the financial side. >> also against companies in the wake of the economic sanctions and entities supporting this. >> we need clear actions in order to change the pattern of behavior of this regime. haidi: eu leaders are slamming belarus over what they are calling a hijacking of a ryanair flight. while officials have kicked off the process by adding more sanctions against belarus. let's get over to the leader of our european government team. great to have you. tell us about what actions have

been drafted. and i suppose the efficacy, given that we know the government is already under sanctions after the election. >> the eu has acted pretty swiftly by its own standard. it was just gone 10:00 tonight in brussels when they agreed that the package was more or less in line with the draft that they had gone in with the start of the next three hours. it basically involves a of sanctions. it will target businesses. it will be wider sectors of the economy, but we have been told people close to president lukashenko. there will be restrictions on flights across and from belarus. so the eu-based airlines have been asked not to fly across

belarus, and belarus airline, the national carrier has been banned from entering u.s. bases well. it's a relatively full package of measures. shery: we heard from air france, saying they will suspend flights over belarus. but all of these sanctions, how do they plan with the fact that russia, for example, has its way behind lukashenko? >> there is limits to what you could hope to expect while it is supporting lukashenko. there is actually one concern that was expressed. we heard earlier on in the day that it would be closer to putin given the final calculation on what they had decided. lukashenko depends on putin already, so they don't need to worry about that.

there is a question of how you go about prying away that regime from the kremlin. it's a terribly tricky challenge for the eu and matches up the related challenges across the eastern border. shery: joining us for madrid. here's a quick check of the latest business flash headlines. chinese ev makers shares after the production partner will help double the output by expanding capacity. the automobile group will boost capacity to 240,000 units annually, which means it will rollout 20,000 cars every month. they have said in march that the current monthly capacity was at 10,000 units. digital currency platform more that doubled after raising $61

million from investors. a source tells us that the company was valued at about $500 million in the funding realm. the ceo says they are eyeing a traditional ipo as soon as this year. india's nissan is caught in a legal dispute after some of its floor staff threatened to stop working after contracting covid-19. the workers are challenging and exemption granted from the automobile industry from local lockdown rules. the company says it's taking all necessary precautions. up next, metals were rattled after china vowed to crack down on speculators and hoarders, but copper continues to climb on gains. we will take a closer look. this is bloomberg. ♪

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shery: you are watching "bloomberg daybreak: australia." after hours twitter and apple under pressure in the evening after our session, after reports the bill and melinda gates foundation so their shares in apple and twitter, just before the couple announced they were divorcing. we are watching nvidia, seeing it rise after hours, after the company announced a four for one talk split friday, extending gains in today's session as well

, given that we have seen nvidia chips on fire, given all that demand for pc's and cryptocurrency mining. take a look at bitcoin. right now we are seeing it under pressure, only after double-digit gains of 16% in the regular session. all sorts of news including tweets about a potential mining industry group association. gold futures were under pressure still staying around the four-month high. we have seen it easing concerns about inflation, playing into the market. copper, pressure on the base metal with iron ore leading declines on the chinese exchange but we thought recoup gains and shrugging off those concerns. chinese crackdown and tapping down on a commodities rally. haidi: we did see the aussie dollar fall after the chinese government warning on valuations in the commodities market.

we have seen a recovery in the aussie this morning up to 77 u.s. cents, mining stocks on the monday session closing weaker. china saying they will reign in surging prices on excessive speculation and spot and futures markets. tony us, tom mackenzie in beijing and paul allen in sydney. tom, beijing gets worried about any excessive surgeon any asset class, what are the concerns about commodities prices in the rally we have been seeing? tom: concern stamper what happened in april, when you saw the highest increase in factory gate prices for three years. that seem to sent shockwaves through the establishment here among officials and authorities. you started from april to hear commentary around concerns about prices but over the weekend we saw the strongest step. this rhetorically at least from officials, the national development reform commission, the planning part of the government pulling in top

executives in the metals industries for meetings here in beijing, warning them of a severe punishment essentially, if there was an continue to beat what they described as manipulation, speculation, monopolistic hager within the metals space. -- monopolistic behavior in the metals space. they said they would have zero tolerance, stepping up rhetoric. we heard last week from the state council, the cabinet and kinda warning about prices. as well they are concerned these prices are feeding -- they are concerned commodities prices are fitting into broader inflation that would pass through into consumer prices that could erode rose, the recovery we are seeing. so far it has been about try to jawbone prices lower rather than trying to take concrete action. shery: paul, how are australia's mind impacted by these moves -- miners this impacted by moves especially iron ore? paul: we did see iron ore slip on remarks from china, still

elevated in the historical sense. nobody thinks these prices are sustainable. even the australian budget is predicated on a conservative iron ore price of $55 per ton. as you would expect that big minors did slip, fortescue off by 4%. it does trade as a proxy for the commodity. rio tinto and bhp weaker. bhp had the first production from the giant noose outflank my last week, the largest new iron ore mine in australia and 50 years. it combines with five other mines and a thousand kilometers of railway it will be the largest iron ore hub in the world. there is more supply coming. our broader concern for australia is china's five-year plan to we itself off australian iron or, which has insulated the country against the worst of china's trade reprisals. china has clinical and economic reasons for reducing reliance on -- political and economic

reasons to reduce reliance on australian iron ore. >> sending mixed messages to markets? tom: that was flagged by analysts yesterday. after the statement by an drc you had the per beer on a visit to a profit saying he wanted to ensure there was a pickup in imports of commodities, improvement in storage and transportation. that led to some watching the space here, a bit of confusion. china's own policies around the commodities and industrials sector as well, feeding into these mixed messages around prices. for example, their push to reduce output in some heavy metals, as part of their aims and goals around reducing emissions. that as paul was noting, restrictions on import from australia, that helped to push prices up as well. so there certainly is a risk of mixed messages and that was the view we got from some analysts yesterday. haidi: and paul, we are hearing

from new zealand they are warning exporters to diversified trading, the relationship as we saw in australia, worsening with china. >> speaking with a guardian describing australia as being close to in the eye of the storm in terms of its relationship with china. and says it may be only a matter of time before the storm gets to new zealand. new zealand has taken a more conciliatory line with china than australia. when that crunch comes new zealand and australia are family, geographically and culturally close, a long history of standing shoulder to shoulder. new zealand also very reliant on china for milk powder exports particularly. a lot has been going on with australia, not unnoticed. saying exporters now need to think about diversification's. so if something significant happens with china new zealand exports could withstand the impact. shery: paul allen and tom mackenzie.

now vonnie quinn with the first word headlines. vonnie: the u.s. olympic committee says it is confident current safety measures will allow team usa to compete safely at the tokyo olympics. the state department issued an advisory urging americans not to travel to japan over virus concerned. tokyo with other prefectures under a state of emergency with two months to the start of the games. in thailand health officials increased the length of time between the first and second dose of the astrazeneca vaccine from 10 weeks to six weeks to allow more shots for more people as the kingdom reels with its biggest front buyers outbreak. dutch biggest coronavirus outbreak. singapore -- singapore says the airport will separate staff handling incoming and outgoing travelers into zones. new measures are set to take

effect by june 13. at an airport, a virus cluster group 2108 cases -- to 108 cases as of sunday. new york mayor de blasio says students will return to school buildings in september at a remote option will not be available. he says reopening the largest school system in the u.s. for a million students will be crucial to the economic recovery of the city. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: next, bitcoin now under pressure, not before rebounding from the selloff over the weekend, as elon musk signal support for minors who go green. this is bloomberg. ♪

shery: a wild ride for bitcoin continues, after elon musk tweeted about talks with crypto miners, concerning energy usage. ray dalio is bullish on outlook but sees an existential threat ahead. >> i think bitcoins greatest

risk is it success. because as becomes more -- right now it is not such a big deal. and, you know, fighting it, is marva mcgill. -- is more of a big deal, and that is it, because it is not that big a deal. as a becomes a bigger deal, and more of a threat, let's say people want to sell their bonds and they want to buy bitcoin and they want to do that in a bigger way, like, buying gold, or something, in a bigger way, and then, there is more transaction, they lose control over that. and that is an existential risk. so, yes, that is connected. the more we create savings in it, the more you might say, i

want to have bitcoin, personally i would rather have bitcoin than a bond, and then the more that happens, then it goes into bitcoin. and it doesn't going to credit and they lose control of it, so yeah, that is a risk. haidi: ray dalio, the founder of bridgewater associates on bitcoin. tesla ceeo elon musk tweeted he is inclined -- in talks with bitcoin miners about their energy uses. he says prices the least interesting aspect. i want to ring in the founder and ceo of avanti bank and trust. one of the charts we have been looking at that shows the price action and volatility across crypto and bitcoin. this is from the weekend on sunday at range from 20% top to bottom, trading within $7,000 or

so. price philosophically may be that least interesting ask about price action is the number-one reason a lot of institutional investors say, this is preventing us from living in. so when do we find that happy medium? >> well, bitcoin is certainly price volatile. it is not systemically volatile which is why i like to talk about price being the least interesting. point taken, investors, certainly speculators, are most interested in the price action. and what we saw in the most recent correction is a majority of coins that traded hands were purchased at higher prices so it was no investors who were not steeled for the volatility and, in panic, sold, as opposed to investors who have been in a for a while. and we have seen, this is, in my case my first -- third full cycle, that bitcoin has for your

cycles and we are still for the volatility. there were 630% plus corrections in the last poem market in 2017, for example. haidi: let me ask about your business which is more crypto adjacent. you just did euros series a earlier this year. what is -- you did your series a earlier this year. what is next? what sort of relationships you have with these clients? what crypto services are they looking for in this market? >> institutions are definitely interested in getting into bitcoin, getting exposure to it and -- investing and it. but you quickly run is the problem, how do you store it? how do you custody bitcoin? traditional custodians for security, like state street and bank of new york, are not providing custody services for these assets yet. bearer instruments, work on a different basis. those of you markets vista get it understand the statement, most of the financial instruments are centrally

cleared. there is a central counterparty that effectively acts as lender of last resort whether the fed for dollars or another for shares or clearinghouses for derivatives. bitcoin will never be centrally cleared. same thing with ethereum. the reason is 75%-80% is held by individuals, not institutions. so the underlying is not controlled by wall street, the underlying collateral is controlled by individuals. that means the trading dynamics and institutional dynamics are very different for these asset classes, for sure. shery: what do you make of these environmental concerns over cryptocurrencies? and the fact that ethereum has a plan to go green? while bitcoin does not? perhaps a proof of --versus a proof of fake? >> there is ultimately no difference between the ultimate energy use a proof of worker proof of fake. i had to laugh out loud when i

saw elon musk's tweet about getting miners together to go green. market incentives are stronger than anything to get miners to go green. i saw percent a big clay is already green. to the -- i saw that a percent of bitcoin mining is already green. to the extent china is cracking down on bitcoin mining in china, much of which is called based. what is -- coal based. ed has the direct incentive to find that people's energy sources and if green is the cheapest energy they will find it. in wyoming, i am saying all over the place around the oil rigs, ease deceit natural gas flared, and not you can see the flames. you do not see that anymore because most oil rigs now have a bitcoin mine attached to them, running flared natural gas and capturing value for that. that is one of the many examples

of energy use. i saw two thirds of the energy produced in the world is wasted not produced near where demand is or produced in a different time of day that demand. -- then demand -- than demand. the nice thing about bitcoin, it lapse of all that waste energy. shery: china, the crackdown continuing. on bitcoin. and they are bringing in their own digital currency. >> a good point what you raise. the past two weeks we have seen on a daily basis almost announcements out of washington and beijing, at the same time, that essentially are cracking down on the industry, especially in china, with regard to crypto mining. many times historically there have been threats to do this. it does look like this one may actually be more real. so, ironically, those of us who

have been around bitcoin a long time are welcoming this. because one thing we have for it about is the concentration of bitcoin mining in china. if that ends up being dispersed it makes the network more secure than it is. haidi: use a profit and price action will still be the number one driver, not esg concerns, what about regulatory overhang? is that the biggest risk with countries like china and missions targets coming into crackdown on the industry? >> gosh, for one thing, on esg concerns, if you look at the traditional financial services industry, it is actually a lot less grain -- green that bitcoin is. anytime you transact in a u.s. dollar a u.s. dollar probably had six data centers. those data centers process the same transaction through intermediaries.

and each one is hitting a data center and those data centers are jordi fossil fuels. so if we were honest with ourselves -- those data centers are majority fossil fuels. if we were honest with ourselves we would realize bitcoin is more efficient. but the regulatory peace to your point is important. my company -- the regulatory piece is important. my company has engaging with the federal reserve to bring together in a compliant way the financial services industry with the digital asset industry and it is not easy to do. we are deep in the weeds and the fed governor brainard made an important speech at a conference, the same conference were ray dalio spoke. i interpreted it as, fired warning shots to the industry to get regulated, especially if you are touching the u.s. dollar. and i think you, mr. dalio's

comments imply that as well. the federal reserve is going to define, based on our expectations, how we can touch the u.s. dollar financial system. everything that touches the u.s. dollar ultimately clears to the fed. so of course they have an interest in defining this. shery: great having your views, founder and ceo of avante bank and trust. time for morning calls ahead of the asian trading date with sophie kamaruddin. we are seeing oil holding $66 a barrel after surging in the u.s. -- new york session given the latest in iran. what are analysts saying on where prices go from here? sophie: at goldman they see a path for brent to hit $80 a barrel in the fourth quarter as they still see vaccine driven growth in demand for energy and eminent clarity on the iran nuclear deal. they are seeing and iran -- an october restart for iran crude.

suggesting brent hitting the mid $70 but the worst case scenario sees a drop for oil into the $40 should iran aggressively ramp up production and if opec plus loses discipline which could also lower energy cost structure of other commodities and perhaps upend the super cycle for commodities. haidi: looking at taiwan, right? they could extend the soft lockdown. yet we saw taiwan stocks close higher in taipei. what is? goldman thing about the outlook sophie: goldman analysts are seeing outperformance of taiwan stocks coming back on strong earnings growth as well as attractive valuations. the market is trading at a 20% discount to asia excluding tsmc. taiwan stocks to overweight and goldman set an expectation for taiex rising with peak economic

growth and taiwan already priced in when they see the forecast. haidi: coming up, anger year after real tinto destroyed-- -- after -- taking a look at the slow pace of change for governments and corporate strengthening protection laws. this is bloomberg. ♪

shery: a quick check of the latest business flash headlines. u.s. payments company square preparing to offer checking and savings accounts, taking aim at banks like j.p. morgan. no announcement but evidence appears in hitting code in a recent update to squares app for apple devices. the code also shows integration with existing debit cards for businesses and suggests it will --forgot monthly service charges and fees tied with minimum balances. gains made a final pitch to curb the app store market power at the close of hearings on the antitrust case against apple. the iphone maker pleaded to leave its marketplace for 2 million apps undisturbed. epic sued apple in august after apple removed fortnite from the store. the judge says she hopes to make really as soon as possible.

merrill lynch wealth management revamping training for 3000 new hires. new guidelines will include a ban on cold calling perspective clients. participants will be directed to use internal referrals are linked in messages. the length of the training will be cut in half to 18 months. haidi: when you're on from the rio tinto destruction of a 46,000 year old rock shelter at australia's gorge, people say australia's government and mining companies are not doing enough to protect the sacred site. more from our asia mining reporter. lessons learned, it sounds like the complaint is maybe not enough has been learned? >> good morning, no doubt there has been a large amount of soul-searching not just with rio tinto but across the industry in the wake of the king gorge last which got -- gorge blast, which

got so much publicity last year. miners especially in western austria asking, can this happen for us? the follow-up for rio, they lost a ceo and senior executives. no doubt other miners are wondering if the same can happen to them. there is still criticism the industry is not taking the issue seriously. in the broader context of the commodity super cycle we are hearing about, prices are through the roof. so the owner -- onus is on these miners to dig up as much as possible as quickly as possible and this creates a tandem -- tension with trying to tighten standards with heritage protection. if you are moving quickly oversight is not as good as it could be and that is were this criticism is coming from. haidi: bloomberg agent metals and mining reporter. we do have "bloomberg daybreak: asia." coming up next in the start of

the trading session. this is bloomberg. ♪

♪ >> welcome to daybreak asia. >> we are counting down to asia's major market open. >> our top stories this hour, asian stocks said to track u.s. equities, higher after tech rally. investors put inflation concern