♪♪ ♪♪ >> a very good morning and welcome to day break australia, i'm haidi stroud-watts in sydney. >> good morning from hong kong. the china makes it's most substantial move yet to curb the strength, banks to hold more foreign currency for the first time in more than a decade.

sophie: in a surprise move china allows all couples to have a third child. a rapidly aging population. haidi: the focus will be on the tone of inflation as economic conditions improve. sophie: and several asian countries step in to help her economies as infections rise. singapore speed up vaccinations and taiwan stimulus packages. a check on how we're setting up for the trading a day this tuesday, global stocks did slip on monday, but still trading near a record going into june, we have asian futures mostly lower, w.t.i. coming online, a two month gain as markets supply gap may deepen. learning more about it coming

up. you have the aussie dollar staying stuck in a range and it will be closely watched. a two-month gain holding 637 as. commerce bank is calling more of a symbolic move. more on that move from china to hold foreign currencies in reserve in more than a decade. let's bring in tom in beijing. tom, give us the detail. tom: this was announced at the end of the day. financial institutions will increase their holdings from 5% to 7%, 2% increase by june 15. the idea from policy makers is you reduce the amount of dollars and other currencies on shore. that pressure the yuan and it's

real action for policy makers to take a swipe at a currency against a dollar to a three-year high. haidi: is it the measure going to actually work? tom: well, that is the key question, of course. commerce bank crime out and said it is largely symbolic. they still see the trajectory of the yuan upwards from here, a stronger yuan because in many points of this, the yield differential is very substantial. that is pulling in those foreign flows, the economic recovery is on a pretty solid footing as well. so those factors still give the yuan support according to the likes of west bank, scostiabank looking at 6.2 at the end of the year. this is possibly one measure and they may follow through with additional measures to try and stop the yuan going forward, but it has followed of course a lot of jawboning from policy makers just over the weekend, you have

an ex-official and a state media commentary both trying to push the yuan down with a bit of verbal or rhetorical jawboning. this is a concrete action they hope is going to lead to a bit of weakness or as they said not bets on one-way moves on this currency. offshore, a bit of weakness on the back of this move. sophie: jawboning will be challenging given that it will underpin the appreciation. also on monday, tom, china announced a major change to its family planning policies. what do we know about that? tom: so at a bureau meeting, china announced a surprise move that families here will now be able to have three children. we don't have the time frame, we don't know exactly when this will be enacted, but it does follow decades of very gradual changes to the family planning policies in china.

in 2016, they allowed families to increase the number of children they could have from one to two. you saw in 2016, a short term split in terms of upward moves in terms of the numbers of births. the concern is that this is too little too late. policy makers are clearly very anxious about a possible decline in population. you could see the population of china falling before 2025 according to some economists. you had 12 million new births last year, that was the lowest number since 1961, but others are saying, look, you need much more than just this announcement, you have to policy through with policy changes around maternity leave, pushing down the costs of education and housingment most think this will not be enough, there have to be other policies enacted if china is going to miss this major demographic challenge. haidi: a sudden baby boom in china. tom mackenzie reporting out of beijing. a lot more analysis ahead when it comes to china's various

policy moves. gabriel will be joining us to discuss in the coming hours. today's reserve bank of australia is expecting no change to policy but will be closely watched that it's preparing away from its emergency settings. paul allen joins us. do we see enough strength in the recovery? paul: there was some encouraging sentiment in the r.b.a.'s last quarterly economic update. the hiring remains strong, discovering sentiments investor intention it is relatively strong as well. we'll have first-quarter gdp numbers out this week as well that is expected to showing ongoing growth of 11.1% on quarter. wages growth is really going to need to pick up for the r.b.a. to hit its inflation target of 2% to 3%. currently well below that.

the governor has signalled july will be the month where discussions begin about the three-year target, whether to push it out to november 2024 from april 2024 and the future of the bond buying program. if that's correct, well, maybe it expects this discussions and messaging to start today that would certainly follow the pattern from central banks we have seen in canada and new zealand. covid, we have that outbreak in victoria at the moment that could persuade the r.b.a. to keep conditions a little easier for a little longer and that's probably one of the reasons we're seeing it hovering around record highs at the moment. sophie: victoria rolling out a support package for businesses enacted by the latest lockdown imposed. what's the situation? paul: that package $250 million to help businesses cope with this week long lockdown in victoria, halfway through, $3500

$. we have a fight between the state and federal government. the victorian treasurer calling the federal government's lack of support disgraceful, accusing it of leaving the field of the health minister saying victoria has had $45 billion of support during the pandemic and there is provision in the budget for more. but the political argument aside, the pandemic discontinue to get worse in victoria. there is 50 cases active in the community there up from four less than a week ago. this is a more virulent strain. it is the first day of winter, so you wouldn't rule out that week long lockdown being extended from friday. sophie: thank you for the preview. kelly wood is going to tell us why we could see a shift this month. let's get over to the first word headlines.

>> sophie, india's economy expanded before the latest wave of infections forced lockdowns across much of the country. gdp marked the second straight quarter extension after a hair recession that tipped the economy into retraction. india is expecting to grow despite the pandemic. singapore's prime minister has pledged to reopen the economy as there is a max vaccination drive and the recent surge comes under control. the government would likely start easing restrictions on june 13. he is aiming to get 2/3 of the residents innoculated with at least one dose by early july. malaysia has unveiled a $9.7 billion package to pep people and companies through the two-week nationwide lockdown that begins tuesday.

it is aimed at boosting healthcare capacity, increasing cash, aid and it's the third package this year. malaysia is facing a worsening outbreak that has left hospitals low on i.c.u. beds. naomi osaka has withdrawn from the french open after a disagreement in participating in mandatory press conferences. she is saying she suffers from depression and social anxiety disorder and media engagements make it worse. osaka was early fined $15,000 after skipping the news conference that followed her first round win. news 24 hours a day powered by more than 2,700 journalists and analysts in more than 120 countries, i'm haslinda amin, this is bloomberg. sophie: still ahead, the pandemic recovery is feeling more inequality. he'll hear from the secretary-general later this hour.

coming up next, the market outlook, staying positive on equities despite the spector. this is bloomberg.

sophie: the seven for more we're joined by a portfolio manager, so great to have you back in the sidney studio with us. when it comes to how equities are reporting, it feels like the stocks are getting some love. is the risk of tightening already past? >> i think the investors at the beginning of the year was very worried about this inflation risk and tightening and all that, but obviously the bond yield move is a normal

liesization, it went way too low. what is happening in terms of the inflation in the u.s. is more of a transitory if anything. we have yet to see evidence of a higher inflation, so if anything at this point it's pretty strong for the equity markets, just given usually a very strong environment as well. haidi: where are you finding opportunities and bargains in this vurment? >> everyone is saying it's expensive, it's not. by some sectors, it's stretched, that's why we saw some of the selloff across some sectors. if you look at everything else, most of the companies, cyclical companies that are exposed to economic growth, they are experiencing double digit earnings upgrade and growth over the next few years since they just returned from the covid. for those sectors, the businesses actually look very cheap on a two-year view.

investing in this environment is remaining agile. you have to buy the business that have the earnings growth and don't throw out the growth because they are the structure winners over a long period of time. sophie: we have seen tech in australia under pressure, the laggard, the tech index more than 12%, with the r.b.a. expected to take on a less dovish tilt, how are you differentiated when it comes to growth stocks? >> look, obviously the growth stock is just as they sold off, you build your position, it's important to find the growth leaders so that innovators of the sector and the leader of certain category because it's obvious that the eventually market is way bigger than many european investors expectations as we have seen earnings being upgraded for those businesses.

some use this volatility as buying opportunity. in five years time, the businesses will be so much bigger and the growth delivered will be incredible versus some of those cyclical names where you're taking a one or two year view simply because earnings will recover from the covid levels. sophie: do we see a risk of peaking as there is a shift in spending from goods to services, you outlined that one to two-year time frame? >> yeah, i think there is a bit of commentary now talking to potentially those indicators peaking. in the next few months, potentially in the u.s. the inflation number potentially could be very, very high, simply because of the stimulus checks combined with the bottle necks. the commodity prices perhaps will be supported over that period.

so short term inflation will still be strong. before australia, i think we reasonably balanced, we haven't got the big stimulus check that has been rolled out and if anything, some of our job keepers in victoria, a little bit of stimulus just to support the latest lockdown. i think we much more reasonably balanced, even though r.b.a. may be less dovish or the interest rates not going higher within the next 12 to 17 months and so they will continue to support the longer ends to keep that yield low. so with that sort of condition, equity market is looking very strong, especially the australia equity market. sophie: we are hearing of market pressures emerging from higher input costs. under what circumstances could this be a cushion? >> that's a really good question actually. we have heard a lot of those

corporate speaker spoke at a lot of those conferences recently. many of over 30% of them have talked about the cost pressure that is coming through. australia remains well positioned on that basis simply because we're pretty lean. we have been cost cutting over the last decade or so and our balance sheets are very strong because a lot of companies have raised equity. the ability to curbon the short term disruption and high inflation because of the border closure, the labor, the material and the like, i think they can do very well. in terms of demand, i think the demand is actually pretty strong within australia. corporate spending in that sort of environment jble bode pretty well for corporate earnings who we actually see, stronger businesses, market expansion on that front. they are positioned very well, the australian businesses.

sophie: the last time when we spoke about trade wars and political risks, is that still on the radar for you? that seems to have receded in conversation lately. >> you're absolutely right. they received it from the headline, at the time it's still there, if you're a global investor, those risks, it's a tail risk. if things go wrong, it could create a lot of disruption for the global markets. right now it's simmering in the background and we're kind of hoping it won't pick up. every investor hopes, not a strategy, we tend to run a portfolio that is more balanced and keep some of those risks in check. for some of the sectors very exposed to that sort of trade space, you do have to watch your exposure. haidi: thank you so much for joining us. now, still to come, tight oil

market ahead after a year with unprecedented volumes of crude, diminishing stockpiles this year. more on that, this is bloomberg.

haidi: our futures trading at 195 this tuesday morning after topping 200 on monday signaling that traders are unconcerned about china's efforts to cool down raw materials. that should confidence that commodities can extend their rally to be the longest quarterly streak of gains since 2008. commodities from this year has been a windfall for australia and the r.b.a. as it looks to maintain the economic recovery. miner sector jobs returning to pandemic levels since early may, back to its historical average.

that has the value of goods produced domestically rising in the first quarter. the r.b.a. is shifting its don't to reflect the paster rebound in the quarter rebound, haidi. hype the opec tightening supply for world oil market. inventories will fall sharply in the second half of the year. let's bring in jim in sydney for more. jim, what are we making of these forecasts that we're getting from opec-plus. jitendra a little over a year ago, we had extraordinary case where the price of oil went negative because of the complete collapse in demand as the covid pandemic spread across the world. now in a position where the surplus has almost been wiped out already and given the strength of the pandemic, post-pandemic economic recovery in some parts of the world, the

u.s. obviously has been very strong in vaccination process and the u.k. also and so that demand has really come back a lot stronger than maybe some of us expected. we're at a point where we have an opec meeting which is expected to confirm they will add some more supply to the market for next month and they'll also discuss maybe even bringing more supply on in the second half of the year as the stockpiles of oil continue to decline amid that economic recovery. sophie: james, will will be any potential of opec to bring online the reserves given the demand that is anticipated? jim: we might get some surprise announcements. a lot to weigh upality this meeting. clearly the market dynamics are shifting very rapidly in favor of the price pushing up towards $70 a barrel. opec will be mindful if that

continues to go higher, we get inflation worries and that could derail this global economic recovery before it's even even started. that will be on their mind. on the flip side, the ever present risk that we get a resurgence of covid around the world that sets back that recovery and also there is the prospect of more supply coming from iran, prospects for the renewed nuclear deal there which might bring iran back into the fold and allow them to put some more of their oil back in the market which will add supply. a lot for opec to weigh up. i suspect on balance, they might stick with the current plan for the time being and certainly start those discussions about what they'll do in the second half of the year in terms of adding more supply to the market. hype the complex has had a bit of a breather, what are the views as to fundamentals from here? jim: i think there is still talk of the cycle continues, i think

in some commodities the underlying command is there for a sustained rally. it's probably going to be a little bit more selective going forward and obviously in iron ore. china is keen to keep a lid on those prices. we have seen them bring them down from highs. lofty levels, underlying demand. i think that story has probably got a little further to run across most of the commodities. in terms of extreme moves, extreme volatility we have even, it might be that we see a little bit less of that going forward. haidi: more insight when it comes to the commodities space and as jim mentioned, the super cycle. gordon will be with us and the chair a little bit later. we'll be getting a quick check of the business headlines as well. investor interest in funding rounds that would raise more than $3 billion.

china tech and equity among 20 investors looking to back the commercial property management unit. one is planning to go public in hong kong later this year. australia may see its second lpgaest this year. they are looking to raise $470 million as they offer a mix of new and existing stock. the company will start taking everorders on friday and begin trading on june 23. it could help australia a strong start to the year after three potential offerings were recently withdrawn. an internal document acknowledges that more than 60% of the mainstream food and drinks don't meet a recognized definition of health, that's according to the "financial times." the f.t. reports only 37% of food and beverages excluding pedestrian foot and nutrition get a rating of 3.5 under a max

of 5 under the health rating issue. >> alex joins us later to talk about what could be australia's first major palladium fine and the iingest

>> you. are daybreak australia. china has relieved brith restrictions. the decision was made in a communist party meeting. the decision was also made to raise the retirement age. china's latest census showed a decline in the working age population.

starting june 15 financial institutions can lease 7% of foreign currencies and reserve. up two percentage points in march the first time the pboc has made such a move in a decade. a new study has found that the sinovac's vaccine can effectively control covid-19 where 75% of adults in a small brazilian town were covered with a second shot. the study may offer clues into how much of the public needs to be vaccinated in order to move past the pandemic. deaths, hospitalizations and cases dropped sharply after a second shot of sinovac's was given. -- of sinovax was given. details are still in the early stages but newly appointed finance ministers is leading the initiative in bloomberg understands it could be

monetary, fiscal or both. pakistan's economy is expected to expand this year after a rare contraction. >> as developed in the common -- economies in the west open back up, singapore spry mr. pledge the country would not be left behind -- singapore's prime minister pledged the country would not be left behind. let's get more context. we are joined by haslinda amin. our chief north asia correspondent stephen engle out of hong kong. has, we have heard more about singapore's reopening plans. what is the subtext of what would happen if there was another outbreak and how it would be dealt with? haslinda: the word we got from the message from the prime minister is one of hope. singapore laying out plans for

reopening. the prime minister said even if the pandemic would stay for longer it will be endemic but singapore will learn to live with it. the path to normalcy is perhaps near everything the european he laid out this tragedy that involved testing and tracking vaccinations and he talked about how all eligible singaporeans will be getting their shot by august 9th, that is the national day. as of today, 400,000 students will be able to register for their shots. priority will be given to those sitting for major exams. this is the way forward. we have to live with the virus just like we live with the flu. i guess the challenge really is how the neighboring countries will be preparing for this reopening as well. it is a challenging situation but singapore will be shifting its strategy from one of zero

tolerance for five receive options to one that allows the people to live with it. >> speaking of neighboring countries, malaysia beginning a two-week nationwide lockdown this tuesday ahead of a third aid relief package announced by the government. give us the details on that. haslinda: this is the third package that amounts to $10 billion in the promise is to help the people in need, and businesses as well as the health care system. the icu units are at maximum capacity. but on the back of this two-week lockdown, we have seen how economies have cut projections, gdp projections. from 6% to 7%. now we're looking at 4%. not just malaysia. we are also seeing extended

lockdowns for the philippines. we heard from the president yesterday saying that there has been a slight -- spike in terms of cases for manila but for the rest of the country cases are surging. and likewise indonesia, given the holidays recently that may have caused the spread of the virus. >> the situation makes this beating up a vaccination programs even more important. and, in hong kong, there is a backlash over some of the measures being taken to try to speed that process up. stephen: that's the biggest issue is the government's inability to get the population inoculated, even though they have more than enough vaccination doses to get all seven and change million people in hong kong vaccinated. more than one million have been inoculated with both doses. either sinovac or biontech. they are just creating more anger in society.

the social medi websites are full of criticism of the government yet again for elitist policies by announcing on monday that they were going to allow senior business executives on top of an announcement that senior bankers will be able to apply for a quota to be exempted from the up to 21 day quarantine in hotels. many people here are saying this is unfair, because let's face it, a vaccinated banker or senior executive is just, the same ability to transmit the virus as an ordinary citizen who is also vaccinated. so, people are angry that the government is giving priority to the -- the elite. yet another perhaps misstep by the government, by the government saying we need to get the economy going, too. >> stimulus one of the key levers here. we heard about that move in

relation. in taiwan, more to shore up the economy. stephen: lawmakers yesterday raising the cap on stimulus spending, having already earmarked or spent the $15 billion. now they have raised it to 30 billion u.s. dollars to cushion the blow from this latest wave. keep in mind, by april there were fewer than 100 cases. it is now nearly 7000. we're in a solft lockdown-- soft lockdowns. restaurants and social areas, spending, retail spending is sharply down in this latest wave. this new stimulus is intended to cushion that blow, but many people still fear that a hard lockdown -- look at that chart -- many say because of this chart, now 8500 cases according to johns hopkins in taiwan, that they are going to have to do a hard lockdown that will give a significant blow to the economy. the president and the online

press conference saying that the recent data shows that the situation is easing slightly, though they still have a challenging situation. >> all right. haslinda amin, our international correspondent for southeast asia as well as our chief correspondent for north asia stephen engle in hong kong. the word recovery has left many regions behind and fueling inequalities. according to the oecd. it boosted its forecast for global growth but is warning that -- standards for some will not return to precrisis levels for some. >> we feel it is pretty solid, pretty robust, but it depends crucially on whether we can keep up the rhythm a vaccination. it's vaccination, vaccination. that is going to define the, how robust the recovery is. and the other question is, is it

going to be vaccination only for the wealthiest countries, or are we going to generalize it? we need a very important effort to be able to get vaccines into the arms of people in developing and emerging economies, and that without that, we won't be able to say that we've overcome the crisis. >> the wealthiest countries are going to be looking at 60%, 70% coverage in the next weeks and months. they are well on the way to done. how long is it going to take developing nations to get to that kind of vaccination coverage? >> the answer is how smart and how generous the developed

countries will be. if they are smart and generous and that means that it's the thing. being smart means being generous. being generous means being smart. then we should fund mechanisms like covax. we should get only a fraction of the trillions that have been thrown at the virus, just a fraction of that will do the trick. we can vaccinate everybody in the developing world with between $50 and $100 billion. upwards of $60 trillion has been dedicated to fighting the virus. so, only the fraction will do it. >> what kind of, we know that there's going to be an uneven recovery because of this

discrepancy in the vaccination cases. in fact, some developing nations are going to take years to catch up to the levels the e.u. and the u.s. are looking at right now. what of the risks of such an uneven recovery -- what are the risks? >> the risk is that now it's become almost a cliché to say that nobody is safe until everybody is safe. and, also because the enemy is mutating. the enemy has variants. it's changing its shape. its dna. and, therefore, we should not allow it to do just that. we should try to beat it as early as possible. and, by the way, this no, it's a fool's dilemma to say that we should balance the economy, the

lives and the livelihoods and the question of health and the question of the economy. clearly, the very obvious choice is get the virus, get the virus, kill the virus, beat the virus first. and then, because the virus is having immediate consequences on the economic side, on the social side. those will stop the moment we stop the virus. >> the oecd secretary-general there. coming up we take a look at whether the australian economy is strong enough to shift policy away from emergency mode. kelly would joins us for that conversation. this is bloomberg. ♪

>> time for morning calls ahead of the asian trading day. goldman seeing sustaining the outperformance in the medium-term. the e.m. valuations appear inexpensive. goldman also saying that domestic inflation is picking up and emerging-market central banks are starting the process of normalization.

>> sticking with currencies, now to the yuan after the pboc sent a signal it wants to slow its depreciation by raising the foreign exchange for banks. anz thinking the move will have a limited impact in the banks, saying china's laundered will reduce dollar interest rates they offer to offset the increase of the ratio. now, let's get a check on -- ahead of the rba decision. aussie three-year futures consolidating not too far off the may high. while benchmark rates are slipping attached. during an important week for rates. haidi: it is aussie decision day. approaching a decision on wednesday. will it be strong enough -- to signal a move away from emergency mode? no change today.

let's get some analysis and impact on the markets from kelli e wood. i want to bring up this charge which takes a look at the shift away from the focus on bank purchases. as we see yields become unhinged from that 0.1% target. could there be aiming for november, 2024? the meeting where we hear them talking about normalization, given there is a lot of uncertainty in melbourne. >> today for the rba we are going to be marking time. we're not expecting a move from the rba but the strength of the australian economy has been really high. high commodity prices we have seen. and massive fiscal stimulus. i think we are starting to see a point at which monetary policy has to be recalibrated. we have seen it on the fiscal side, a recalibration on the fiscal policy side. we now see the point at which

monetary policy has to start to move forward. haidi: how much ss strengthened --how much has this strengthened the aussie dollar? kellie: the aussie, they don't want an unwarranted appreciation of the dollar. we have seen the bank of new zealand moving toward a more hawkish stance. where the rba and the fed have been digging their heels in, because of their income based targeted. >> i'm just going to jump in for some olympic's related news. we're seeing the arrival of the australian softball team. live pictures. ds trailing olympic softball team is one of the first guinea pig teams -- the australian olympic softball team is one of the first guinea pig teams to

arrive ahead of the open on july 23rd. a huge state of uncertainty when it comes to the state of emergency in japan. lots of calls for the to not go ahead, given the surge in virus cases. we have heard from olympic organizers in particular, that softball team, saying that because they are the first to arrive they will have to go through -- jump through a whole lot of hoops to make sure that they play their part to getting their games and the training underway safely. >> back to the rba now. as market prices has the lower chance of the rba lowering its yield target, we have seen a widening of the spreads ben april and november 2024 bonds. what is the entry point you are looking for? kellie: in terms of the rates market, we do think we will see a shift from the rba in july. our view is it should move to a

bullish yield control curve and have more flexibility around recovery and just utilize their q.e. program. we really are seeing, we do see high yields in australia. this time is really different. recovery is really being boosted by fiscal stimulus. and we're now at a point where we see the rba needs to shift to managing a much stronger recovery. >> as the yields are ticking up higher, do we see a widening of the aussie-u.s. 10 year? do you believe that the supply demand imbalance will continue? >> it is a good question. in the u.s., that is the market we see most underperformance. we think about the u.s. debt. that is where we see the most inflation pressure. we do see economies overheating. the fed potentially getting behind the curve.

we do see the u.s. underperforming yield markets. but aussie bonds -- are across this environment. we see yields moving up. >> kellie, thanks for much for joining us. now, coming up, naomi osaka has officially dropped out of the french open. we'll get the latest on the number two tennis player in the world next. this is bloomberg. ♪

>> let's get you back to the international airport in tokyo where we are seeing the arrival of one of the first olympic teams on the ground ahead of the tokyo 2020 olympic games. the australian women's olympic softball team has arrived. they are one of the first to arrive. as such, guinea pigs. they'd been told it would involve five or six hours at the airport alone. they have already been tested, but again a covid test upon arrival but they have to sign array for releasing responsibility of olympic organizers in japan should they fall ill, because as we know, japan continues to see a surge in cases, we had that third state of emergency across the nine prefectures. and rolling voices saying the

lepic should not go ahead. -- the olympics should not go ahead. and the japanese doctors association say this this could result in an olympic variant. lots of controversy. we are starting to see the start of arrivals of these athletes who, of course, are very keen to get that competition underway. >> quick check of the latest business flash headlines. writers reporting -- the families are preparing to take a direct stake in porsche. an ipo is not high on the agenda come although volkswagen is considering scenarios for doing so. porsche n volkswagen denied to comment. a venture capital fund aimed at helping -- check esp values. it aims to attract $150 million in capital and will focus on late stage japanese startups and

health, fintech and sustainability. they also include etf life and a trust group. the world's biggest new supplier jds says some operations across north america and australia have been halted after a cybersecurity attack. jds said it did not believe employee data had been compromised but it warned of a delay to some transaction saying that it will take time to resolve. >> naomi osaka has withdrawn from the french open after a disagreement about participating in management press conversation. the world's number two player released a social media posting she suffers from depression and social anxiety disorder and media engagements maker condition worse. it's a really interesting question which throws up a debate over what exactly are these athletes obligations? she can play a spectacular game

in tennis, or can talk about any other kind of athlete. is she obligated then to also put on a show after the game and to speak to the press given that she has been clear about how effexor adversely? -- effects her adversely? she is garnering some support from people who are very sympathetic saying that she could be taking care of her mental health first. don't do anything that will potentially exacerbate the issues. >> this may raise questions for the sports industry as to the obligation of their athletes, given this episode. let's get a quick check on our market shaping up this tuesday morning. to see how we're faring ahead of the rba decision that we are counting down to checking in on how we assets so far this morning. we do have aussie bonds very much in focus, given the -- we m

ight see a less dovish tilt from the rba. you have -- asx futures moving to the downside. pulling up the board for that check on bonds, as of course, we have some diversions as to what economists anticipate from the rba. coming up in the next hour we get a look at market outlook. including alex long. plus, chalice mining's alex dorsch joins us. daybreak asia is next. this is bloomberg. ♪

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sophie: counting down to the major market open. our top story this hour, china makes his smokes -- most substantial move yet to curb you and strength. commodities looks set to repeat

the recent surge despite