haidi: a very good morning and welcome to daybreak australia. shery: i'm shery ahn. haidi: oil hits a two year high as opec-plus says they are bullish on demand, sticking to their easing of supply curves

through july. stocks on wall street lose steam after u.s.-made fracturing activity has higher commodity prices. straley is set to release its first gdp growth numbers. -- australia is set to release its first gdp growth numbers. shery: this is the picture across wall street. u.s. features under a bit of pressure after the s&p 500 fluctuated between gains and losses. we did get u.s. manufacturing data topping estimates, but also showing weakness in employment figures. we have small caps outperforming. the russell 2000 ending at the highest level in a month. energy stocks among the best performers with wti extending those gains, the highest level in more than two years. opec-plus now forecasting a tightening market, not to mention slightly optimistic economic commentary coming from energy ministers. we are seeing a lot of movement in the commodity space given we also have that cyberattack that

is affecting livestock prices. we have soon world stocks at th. haidi: let's get more on the opec-plus alliance and expectations that oil demand will recover in the second half. officials one concrete evidence and are -- want concrete evidence and are pledging to keep a close watch. >> we will not leave this market exposed to any lack of attendance. haidi: our bluebird intelligence commodities -- bloomberg intelligence commodities strategist joins us. it felt like opec-plus was not giving much detail as to what the next months hold. >> they are doing an impressive job holding back that supply. it is the highest excess capacity ever. the shale producers are signing, oh -- are saying, oh really?

you expect the classic economic forces to kick in. the market is probably heading toward a good ceiling around $70 a barrel for wti. shery: we had forecasts from the iea as well. what are they saying about reaching that balance between supply and demand? >> most people are optimistic about demand. i wish them luck. i think the world has changed. we need to pounds from last year's low. -- bounce from last year's low. i think people are going back to driving for vacation, but they are not commuting and driving to work. those days have changed. we look forward to the big picture.

efficiency is really holding back demand, but everything is going ev. the new ford f150 is going electric. i see crude oil getting near the upper end of the range and advancing technology increasing production. u.s. shale around $45 a barrel and reducing demand in the big picture. haidi: what are the bigger structural implications as we get out of the post-pandemic phase, all these technological and environmental factors starting to play again? mike: the big picture does not matter. in the bigger picture, the key point is the last time we were at these levels around $77 a barrel in crude oil, that was the peak from 2017, the average cost of production in the u.s. was $50 a barrel. now it is $45 a barrel. we are seeing that trend. i look at crude oil, that is not a commodity i want to be bullish. all that decarbonization means

demand for metals. copper reached an all-time high for a reason. gold had a high last year. silver is probably getting there. i look at what opec is doing about what they have been doing forever. good luck holding back that supply, because they still have a lot of it. it is that elasticity of supply that is a problem. demand is just not there. in metals, low elasticity of supply supports the prices. david: mike mcglone joining us. you can get more on opec and other commodities, metals, soft commodities as well, a roundup of the stories you need to know to get your day going in today's edition of daybreak. go to dayb on your terminals. let's turn to sophie to see how we are setting up for the asian market opened fors -- market open. sophie: we are seeing more

action and currency markets. watching the turkish lira, falling to a record low against the dollar. this as erdogan indicated new interest for lower interest rates in turkey. in australia, after the rba held policy settings, we are waiting on the first gdp report and iron ore prices will likely drive growth in the first quarter. iron ore futures in singapore holding around 200 as china indicates it may seek to ease steel production curbs. spot gold around 1900 after slipping as we got that update u.s. factory activity report. we did see a pickup in new orders and longer delivery times, which may add to supply concerns as that weighed on copper. shery: positive eco data in the u.s. affecting market sentiment. take a look at this chart on the bloomberg. u.s. ism manufacturing numbers really topping estimates. also showing some ongoing

difficulties from supply shortages and labor constraints. at the bottom panel, you are seeing the university of michigan expect a change in prices. that inflation outlook is rising. this coming at a time when global manufacturing is showing the fastest growth in 11 years according to jp morgan pmi numbers from the month of may. our next guest says she sees a pullback as the fed comes closer to taper talks. great to have you with us. how do you position ahead of the start of starting of tapered talks from the fed? >> i think we've got to assume that they are going to talk up interest rates, beginning with some taper talk, probably at

jackson hole. we have to invest in a rising interest rate environment, which we have been attempting to do for the past six months or better. we are looking for probably year end 10 year treasuries in the 1.7% to 2% range, from 1.58% at friday's close. what we are tenting to work around is inflation because we do think it is recovery field inflation and we think it will peak probably by november. it is proving to be transitory. haidi: could we see gold making a comeback? mariann: absolutely. gold and gold miners in particular is the likelihood of a pullback with the rising interest rate process coming in

as we get closer to the taper talk at jackson hole. shery: what about the rest of the commodities complex, in particular the mining stocks? is there still further upside? mariann: yes. we like gold miners because we think there is leverage as the price goes up and their costs are fairly static. they will outperform the gold itself. those are the miners we are favoring as gold. the junior as well as the large gold miners. haidi: which sectors do you see as being the biggest inflation risk affected, and how do you hedge that? mariann: most afffec -- most affected by inflation, really it is the hospitality, being hotels and restaurants right now. they are the most dependent upon labor and food prices. the food prices are really difficult to work through.

in fact, we've got a local restauranteur who says a case of chicken breasts has gone from $40 to $75 and the oil they use for frying has gone from $20 to almost $40. they are trying to work through the higher commodity prices. they are trying to entice people to come back to work. some people are still getting state unemployment benefits and really are loathe to return to the workforce as long as they are being supported. i think that is an industry that is going to be disappointing as they report quarterly results, but it is something they have to work through. haidi: always great to have you with us. mariann montagne. still ahead, we get australia's first quarter gdp numbers

after the rba kept the kiwi open. coming up next, the world's largest meat producer hitting australian beef operations. this is bloomberg. ♪

shery: we continue to watch the commodities space because it plays into the global inflation debate that we continue to see. corn and wheat futures rose in a previous session. this as we continue have dryness in parts of the u.s. and brazil leading to concerns of supply shortages. we did get metals prices falling for the first time in four days. copper under a bit of pressure, this after a rally halted in

canada because we saw workers on strike. we are watching the livestock futures market, not to mention pork prices. we did get that cyberattack that has shut down many slaughterhouses around the world. we saw the disciplined -- the discount increasing from the previous session. this as we continue to watch beef capacity. here in the u.s., a quarter of it has been shut down, not to men thing -- to mention 1/5 of pork supply has been incapacitated. we are watching the commodity space right now. haidi: this is a huge issue, the cyberattack and reverberating impact. jbs is the largest meat producer globally, including here in australia. the prospect of even more shutdowns is raising concerns about food security. let's cross to our agriculture

reporter. we had hacking stories across different sectors. we have also been talking about food security in the wake of the logistical challenges of the pandemic. what does this mean for the meat industry? >> basically, when the slaughterhouses are shut down, it prevents the animals from getting processed into meat. it could mean we will start to see shortages at the store like we saw a year ago during the coronavirus pandemic, which gave us a taste for a long shutdown inside plants that did have a supply impact. shery: it seems like disruptions in this industry are becoming more frequent especially after the coronavirus pandemic. michael: even before coronavirus, in 2019 there was a fire at a tyson foods beef plant in kansas. that did press down on animal

prices and lift up meat prices. that is something everyone is watching really closely. this is another one of those things that you think is never going to happen, and here we are today, waiting to see if some of these plants are going to reopen. haidi: here in this trillion, the exports total about 75% of sheep and cattle and beef production. how long with the shutdown have to go on before we start seeing an impact on exports and supply chains? michael: this hopefully will only last a few days, and the impact might be limited. anything beyond this week, things could start to be a little bit concerning. like australia, in the u.s., china has been buying a lot of the world's protein supplies. there is not a ton of available supplies as restaurants are

reopening and stores are continuing to sell a lot of product. there is not a lot of slack in the system to absorb a major player being down for a long time. haidi: our agriculture reporter in chicago with the latest on jbs. we do have breaking news at the moment. amazon is supporting a federal law that would legalize marijuana. they are saying they will not include marijuana and most of their drug screening programs. this coming at a time when they are changing their time off task policy as well. they are saying that in the past, like many employers, they disqualify people from looking at amazon if they tested positive for marijuana use, but now they are supporting the federal law that would legalize marijuana, saying they will not include marijuana in most drug screening programs. they know this is a bigger issue than amazon. their team saying their policy

team will be supporting the marijuana opportunity expungement act of 2021. we are seeing more states legalizing recreational use of marijuana as well. we are seeing this changing tide across the united states. let's get over to vonnie quinn with the first word headlines. vonnie: president biden has visited tulsa, oklahoma to mark the 100th anniversary of a massacre in a prosperous black neighborhood, also referred to as black wall street. a mob destroyed the city's once thriving black district, killing up to 300 people. thousands of others were forced into internment camps. biden is the first sitting president to officially commemorate the massacre. moderna is seeking full u.s. fda approval for its covid-19 vaccine. the drugmaker will submit data on a rolling basis for use in ad ults. the move could make its shots cleared on an emergency basis

during the pandemic into a stable source of revenue for years to come. moderna says it's messenger rna vaccine has been shown to be highly of. -- highly effective. the united kingdom is said to have reported no deaths from a covid-19 test. prime minister boris johnson is facing pressure over a highly anticipated reopening next month. health officials are increasingly worried about another surge. johnson & johnson must pay a $2.1 million award to women who claim its talcum powder was contaminated with cancer-causing asbestos. j&j asked the court to reconsider the 2018, which it declined to do. it still faces more than 26,000

lawsuits over its talcum product. global news 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: taming china wolf warriors. this is bloomberg. ♪

shery: chinese president xi jinping urged to create a livable and respectable image for the country. beijing may be looking to smooth its hard edged approach. let's bring in tom mackenzie in beijing. what is the lovable changes xi is looking for?

tom: possibly quite the change. president xi tele-coming as party leaders he wanted china to make friends extensively, i'm quoting, and expand its circle of friends. he added china should be open and confident, but also modest and humble. quite a change from the wolf warrior diplomacy, the end of ideal strength that president xi ditched early on in his leadership. it follows actions that china has taken across many countries, notably australia, you think trade measures, travel bans, and fiery medic protests. it is not just australia, it is canada, the eu that have faced this firestorm from beijing. it seems president xi at least once to see a change. shery: is this a reflection of everything that happened during the pandemic? why now? tom: really good question. pew research did a research of

people in 14 different nations. the results were that the image of china deteriorated rapidly last year as a result largely of the pandemic. certainly the fact that china's image globally has taken a battering is part of the calculation. but also this wolf warrior diplomacy has not worked, the argument of many. you need not look further than the european union and philippines, which seemed willing to have closer ties with beijing. that now is certainly not in the cards. you see that investment treaty with the eu has fallen apart. pretty frosty relations between the philippines and china. you also have the fact that president biden has been pretty successfully in reforming these alliances. you saw that in terms of sanctions between the u.s., eu and others over china's alleged abuses.

we will have to see whether or not these comments from president xi result in any material change. those in australia will be watching that very closely. haidi: having a lot of -- a lot of policymakers in australia would love to be friends. the vaccine rollout has accelerated quickly there. does that mean we will see china reopening to the rest of the world? tom: the short answer, it seems, is no. they have gotten to a point where they are vaccinating about 20 million people a day. no other country is doing that. they vaccinated 660 million people total in terms of the first shot in a population of 1.4 billion. about 80% of people living in beijing had their first shot. the vaccine rollout is happening. you are a few months away, experts say, from herd immunity. anytime there is a little bubble in terms of cases, they resort

to the playbook in terms of lockdowns and mass testing and closures of travel. 50% of flights out of one city were canceled. why are they still so aggressive? the experts we have been speaking to suggest one reason might be china's vaccines -- there is no data yet on how efficient they are at preventing transmission. maybe that is a concern. but also a shift amongst policymakers would be required to get to a point where china is prepared to live with clusters of the virus. so far we are a long way from that. shery: markets coanchor tom mackenzie. we will be live from the jp morgan china conference over the next two days with big interviews. we will be speaking to the jp morgan asia-pacific ceo and the vice chair all in the coming hours. here is a quick check of the latest business headlines. zoom sees robust sales,

signaling its ability to attract more customers even as demand created by the pandemic eases. the company's profit forecast for the second quarter topped analyst estimates. first quarter sales nearly tripled on a rise in corporate clients. investors have raised concerns over whether zoom's growth can continue as vaccinations ramp-up. tsmc is moving forward with plans to build a $12 chip plant in phoenix, arizona. its ceo says construction is well underway months after the city approved financial incentives for the project. jk are is -- jkr is taking a private software firm private. a 24% premium. the can he has struggled to sustain growth against larger rivals like amazon. up next, australia is expected

to report modest growth in their first quarter after the rba kept its qe door open. an tension to victoria's lockdown living. -- an extension to ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network.

haidi: the lockdown in the australian state of victoria looks set to be extended as case numbers continued to climb. paul allen joins us with more. there is some concern the outbreak has spread into new south wales. paul: it is becoming apparent visitors from victoria crossed the border into southern new south wales on the 23rd and 24th of may. after returning back to victoria, felt some symptoms and on the 31st, tested positive.

that is being treated as potentially infectious by health authorities are there are five venues listed of concern. it is disturbing because the new variant appears to spread far more easily. victoria's chief health officer because it absolute beat. this is why victoria's lockdown looks to be extended. there are 54 cases now. 350 venues of concern and reports some people who visited the venue even just for a few moments have tested positive for the virus. it appears likely the victorian state government will extend the lockdown beyond thursday. some regional parts of victoria are unhappy about that and are lobbying for a resumption of the ring of steel around the city of millburn. -- of millburn. melbourne. haidi: paul allen in sydney.

australia's gdp is set for a modest rise in the first quarter. the data is due out today. i am joined by the senior economist at anz. that is in light of the rba not surprising markets at all to is -- at all. as the resurgence as well as potential uncertainty going to be top of mind for policymakers? >> it is certainly going to be a big factor. they have said all along this is the biggest downside risk for the outlook, the pandemic itself. if we get these lockdowns and longer lockdowns and more cases, it does eat into confidence and spending. that is especially the case this time when we do not have the support of job taper. we are going to get an announcement today about whether the lockdown will be extended. this will be a little bit of a hit to victoria's growth.

haidi: the indicators are pretty strong. you see consumer confidence in strong. sentiment boosted by these property prices we continue to see. employment returned to pre-pandemic levels. what are the weak spots? does it matter the borders are going to be closed for another year or so? >> it is really around confidence. at the moment, the economy is going very strongly. when we look at today's gdp report, it looks like it will be a strong number. with wadley-based strength. if we see these continued lockdowns, particularly in an environment where there is less fiscal support, you could find there is some hit to confidence and people stop spending quite so much. i don't think it is a case where we will see a solid weakening in the economy, but it might take the edge off growth. shery: when you say broadly

based growth across australia, we are also talking about the housing market. this chart showing how prices have surged. we continue to see this boom. sidney houses posting their biggest boom since 1990. should wiki -- should we be concerned about a bubble? >> this is what we are seeing around the world. in the u.s., new zealand, and about, the do k, we are seeing the impact of low interest rates on asset prices. i do think at some stage the regulators are going to become concerned about the pace of price increases particularly if they continue the way they have been over the past few months. our view has been the regulators will step in to words the and -- step in toward the end of the year with some macro control. there will be concerned about

affordability and the intergenerational inequity these low interest rate policies tend to exacerbate. shery: and those tweaks need to happen on the physical policymakers side of these. how much can be done on the monetary side? >> idol think the rba would use interest rates -- i don't think the rba would use interest rates to try to solve the house price problem. more in their role on the council of financial regulators, they will look at the lending practices of the banks. they are watching them closely to see whether there is any sort of easing of lending standards. when we look at what is happened with housing finance, it is up more than 90% since the low in the middle of last year. we will see an easing in some of these lending standards and i think that will lead eventually to some sort of macro prudential control.

haidi: i want to talk about the commodities. it has been good to australia. i want to talk about this chart taking a look at the value of exports in australia. if you look at this and think australia is a one trick pony, what about the rebalancing? >> it is really benefiting from the higher commodity prices. it is helping profit and it is slowing through to government coffers. this time round, it is different to what we saw in the middle of the first decade where we saw that translate into a mining investment boom. we are not really seeing the signs of debt. i don't think australia will benefit so much of this time around but certainly it is helping the budget getting into a better position at the moment then it would have been otherwise. the government tends to forecast iron ore at $55. they are reaping the benefits of

it. shery: thank you very much for joining us. we have breaking news. all of the beef plants any the u.s. operated by jbs have been shut down after that attack. jbs is the largest beef producer. they were forced to shut down given a cyberattack this week. a quarter of all u.s. beef capacity has been taken down. now we are hearing all of the fed beef and regional beef plants were short -- were forced to shut down. all other meatpacking facilities experiencing some level of disruption. this according to the united food and commercial workers international union. unclear right now how many plants globally have been affected. for now, we understand all of jbs's beef plants in the u.s. have been shut down after the cyberattack.

this raising more concerns about global inflation when it comes to food prices. let's turn back to monetary policy. inflation a key concern. the bank of japan urging the country financial institutions to prepare for the transition away from libor. it is worth -- it is due to expire this year. we spoke to the bod -- the boj's point man. >> there are two main aspects for evaluating the transition to alternative benchmarks. first, how much progress has been made. second, how much progress has been made introducing fallback. some progress has been made with fallback provisions especially with derivatives. some 96% of financial

institutions holding derivatives already signed off on or decided to sign off on the association's fallback protocol. the protocol sets out the replacement robustly. on the other hand, the response for products such as loans still have some way to go. according to a survey done by the financial services industry, only 20% of the outstanding products was covered by fallback provisions as of 2020. many of them do not set out successor rates. while we cannot predict how things will turn out, we can say the process of setting up fallback provisions is underway and we hope these positive moves will continue. >> there are some concerns pays has been -- >> hi understand there is concerned the transition process has been slow. i think this is just for new

transactions. the relevant parties have already made an effort to speed up the process. the rates for one of the alternative benchmarks, the tokyo term risk-free rate, have been published since april. that will speed up the transition for new transactions. also, the review committee made recommendations for yen interest rate swap markets in march. these recommendations are consistent with global standards. that will further encourage the use of torf. we only have a month left to go kid we are no longer at a stage to wonder whether it is doable. we are at the stage where we have to get it done. haidi: the boj director general p he was speaking with bloomberg. -- general. he was speaking with bloomberg. sophie is with us in hong kong. we saw opec-plus sticking to its plans. not giving much more details. we are seeing this translate to

crude. sophie: goldman saying they are maintaining the positive outlook for crude. expecting brent to hit $75 per barrel in the second half while wti is staying at 72. goldman reiterating its recommendation to be longer brand and exposure to oil contracts. shery: morgan stanley lifting their oil forecast. what are they saying? ♪ what they are -- sophie: what they are seen driving the upside is they are saying the heat is on for publicly listing companies. could be good news for opec as it allows for the alliance to keep supplies in the markets tighter for longer. the bank boosting its long-term price by $10. wti at 57. the pickup in oil and other commodities has helped push for the spot index back to decade

highs after the best session for the broader complex in six weeks. shery: we'll be watching as we continue to see wti up $67 a barrel. coming up next, the drive to get people back into offices. some are preferring to quit the forest. this is bloomberg. -- quit if forced. this is bloomberg. ♪

vonnie: you are watching daybreak australia. opec-plus is sticking with its plan to increase oil output in july even as saudi arabia keeps the market guessing whether the group will add more supply later in the year amid demand and recovery. the alliance will increase inventory by 841,000 barrels. after july, it is scheduled to hold reduction steady until april 2022. i ran's says a deal on revising a 2015 nuclear accord is unlikely before presidential elections later this month. world powers had hoped to restore the deal. tehran says a finalized deal is likely in august he is likely to be replaced by a hardliner who

may be more hostile to the deal. the delay leaves in doubt when iran can ramp up oil exports p the world health organization has allocated a vaccine for emergency use. it found -- sinovac has previously faced criticism for a lack of transparency over the efficacy. the cdc says it is monitoring what china's government thanks maybe the first strain of bird flu. beijing's national health commission says a 41-year-old man went into hospital in april and is in stable condition. it says no human case is reported elsewhere and the risk of large-scale transmission is low. 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. haidi: deutsche bank has launched its new remote working policy. looking to implement a hybrid model for staff. joining us for the details is our bloomberg age of finance reporter. a lot of banks have been grappling with what the return to work looks like. you have many parts of the spectrum. what is deutsche's proposing? >> it is all about finding that balance in the post-covid return to work life. deutsche's is saying they will officially move to a hybrid model. between 40 and 60% will be in the office at any given time. eventually they will reduce office space. we have seen other banks like hsbc and ubs doing the same. shery: the regulators are

weighing in. >> absolutely. in hong kong, the monetary authority has come in and told the banks to get their staff vaccinated and that is the first step to getting people back in the office. the a 30 has asked banks to come up with a list of staff in client facing roles, so people in wealth management and commercial banking and branches to get them vaccinated so they can come back to the office because regulators worldwide are concerned about the effect of people not coming into the office. haidi: not getting face time, not networking. we heard from aco about how to fix young bankers in particular. >> this has been an extraordinarily productive year. we have not missed much as a result of being out of the office. longer-term, it has big impacts on the ability to train and recruit and retain the best of our people. this is an in office experience.

i expect by the fall we will be more in the office. haidi: is this an excuse to get people back in the office or is it legitimate these concerns that working from home behind a screen is a very different experience? >> it is a bit of both because a lot of workers will say they are just as productive if not more productive and are putting in more hours working from home because there is a lot of blurring of lines between work life and family life and there is no commute kid they're putting that time into office work. you see ceos like goldman sachs and jp morgan say we don't want people to be working from home. on the other hand, a recent survey of u.s. were showed 39% of people said they would quit if they were told they could not work from home at least part of the time. shery: bloomberg asia finance reporter who is not working from

home but great story. a fintech firm in its first day after going public. it helped fintech -- it is helped fintech firms may reverse that trend. >> history has shown there are a number of different ways to go public. there are three ways. a direct listing with a primary offering. a regular ipo and then a stac merger ipo. i have seen dozens and dozens of ipos. every company has different circumstances. we had a couple unique things we had to software. a large percentage of our capitalization was preferred. that needed to change both to be

a licensed national bank in the united states. also to be a public company. we also had to raise capital, which we were working on privately to pay off a seller's note to the acquisition of gail leo. -- to galileo. we wanted to capitalize long time. were waiting -- we were raising money privately. we were very in a great position to have a lot of options. we decided to execute three legs of a stool. one was a private investment at 370 million dollars of an investment we closed at december 27. we launched a piper from december 31st. we announced the spac on or about january 4. we raised $2.4 billion.

paid off the note to galileo and capitalize the company for the foreseeable future. if we get a national bank license and defining our business into the future. a great outcome for our shareholders and team and partners. >> you're helping to empower a new generation of retail traders taking stock like gamestop and amc. you have any hope retail traders might pick up or do you prefer to stare clear out -- to steer clear of the potential volatility? >> i would first say we focus on giving access to investing to members. we want them to be long-term investors. we want them to consider all the investments they make and indeed sure they are -- and ensure they are suitable for themselves. when you say the word retail trader in the back of my mind, i think day trader.

we are fortunate in that less than 1% of our brokerage accounts have more than three trades in day. we are trying to educate investors on union recurring investments. we also have robo accounts, which is another way to drive diversification. we have introduced five etf's, which are a low-cost way in terms of dollar per share. against a diversified portfolio of stocks. we have the gig economy and others. as it relates to the retail trader mentality that is talked about quite often, i do think it is really important in this world in which we have a significant sector acceleration. people accessing public markets but they do it in an educated way. it is the responsibility of the public rocher's that the assets that are being bought is suitable. haidi: we will have lots more to

come on daybreak. this is bloomberg. ♪

haidi: new zealand rugby is planning to sell a slice of commercial operations to u.s. equity firm silver lake.

the proposed deal requires the approval of all the players. tell us the details on why some are upset about this. >> the backdrop to this is new zealand rugby, which administers the sport here it is in financial trouble. it has been running losses for a few years. both sides recognize there is a need for a cash injection. they disagree over the solution. new zealand wants to sell a slice to private equity and use silver lake's sports marketing expertise to monetize this strong brand. the players are sitting, hold on. this is a brand we built up over more than 100 years. it is a part of new zealand's history and culture. we don't like the idea of selling off a slice to an american company. they propose to sell a small

slice to new zealanders via the local stock market. shery: what is the timeline from here? what happens next? >> really hard to say. it is a real standoff. neither side is showing any inclination to budge. they will commence talks. they will try to find a solution. it could take weeks or months. haidi: bloomberg wellington bureau chief ted we ought -- bureau chief. we are waiting for aussie gdp. the rba leaving the door just a jar for the tech -- for the potential of qe. we are also awaiting an update when it comes to new virus cases in victoria. the 7-day lockdown is largely expected to be extended for further days.

that is just about it for daybreak australia. daybreak: asia's next pair the countdown to the start of trading in major markets. this is bloomberg. ♪

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shery: from bloomberg's world headquarters in new york, i'm shery ahn. sophie: we are coming down to asia's major market open. haidi: our top stories this hour. oil hits a two year high as opec-plus saying they are bullish on demand. the hack attack on the world's largest producer hits operations harder.