haidi: good morning, we are

counting down to asia's major market open. shery-ahn: welcome to daybreak: asia. our top story this hour, fears go after a federal official hits that it is time to consider unwinding a bond purchases. president biden looks to amend the trump ban on u.s. investments, china's military -- shery-ahn: this time the hedge funds are backing down on other bearish bets.

-- shery-ahn: just managed to eek out some gains come investors to wing inflation, all about these gleam stocks. they were on fire, in the new recession we are still seeing some movement on the amc, that they have been leaning in that retail frenzy, that rewards small investors with goodies such as special screenings, free popcorn's as long as data around a few thousand percent this year. amc is showing the value today, more than apple, tesla, combined. we are seeing a little bit of downside pressure for gamestop, amc, when it comes to market cap and a lot of movement in bed,

bath & beyond as well. haidi: of course, they bring, the fed is plenty to wind down the federal debt purchased through the launch last year. policymakers say the purchase will be gradual and orderly, the announcement comes as markets look for any signal for the start of taper talks earlier. patrick harker said that this time should be now. >> it is appropriate for us to slowly, carefully, move back on our purchases, at the perfect time, that is something we have to be careful of removing accommodations so that we do not create any kind of taper tantrum. that is why we need to communicate very early, often, what we are going to do. haidi: blackrock has a warning for investors, higher inflation

will be a big shock to, -- too. shery-ahn: investors are worried about the inflation and the pandemic, inflation expectations of matter to the fed. let us bring in the chief global market strategist at invesco. is that why we are seeing the faultlines forming and what that does to the fed's overall message to the markets. >> they are going to be members who are more sensitive to inflation concerns, less concerned about the economic recovery and so they are getting more vocal. this all helps the fed larger effort which is to communicate early and communicate often. so that the public gets so

comfortable with the idea of tapering that it almost get sick of the communications that at some point it is ready to say rip off of the band-aid and get started. haidi: what did you see on the fed's page book? >> it is no different than the ism manufacturing survey yesterday. prices are going up, input prices in particular. what we are also seeing of course is continued problems created by supply chain shortages. the area of most concern to the labor market shortages. it is become hard for some employers to fill positions. this is nothing new, we heard that in the federal reserve page book that was released back in april, it is clearly an issue that could lead to a higher wage growth. haidi: you are so positive on

cyclicals, we are using the opportunities they are, particularly in asia? you say as you have a third there does not seem to be a great differentiation based on a great differentiation based on markets and economies that have handled covid-19 oil and those that have not. >> that is absolutely correct varied i think that investors are just looking ahead to an economic recovery that is likely to be very robust. many countries have elevated household savings levels, pent-up demand, of course reopening is going on. there is the ability to spend finally. i believe that asian equities are certainly going to benefit from this. in particular cyclicals. industrials, materials, we are already seeing that. we see a continuation of that and an acceleration of that trend. as this economic growth. -- period cell rates. haidi: geographically, what are

you looking most interested in. >> e.m. asia is very attractive. i would specifically focus in on china, and south korea as areas that really can benefit from the reopening in the u.s. and the reopening and the economic acceleration that is going to occur in europe. those in particular, there are many markets that are likely to benefit. we even saw the indian stock market very well in may despite the overhang of that awful covid-19 surge. haidi: when did the pandemic and infection stop being a differentiator when it comes to market performance? >> i think it was this year. that we saw this rollout of the vaccines and the recognition of the economy is the global economy is going to grow. that it is going to recover

quite quickly from this pandemic, and that many, many countries are going to participate in this recovery. they are not going to do it all at the same time. there are going to be beneficiaries from the developed world, participating in a recovery right now. that really has become more important than concerns about covid-19. haidi: always great to have you, chief global market strategist at invesco. head on daybreak: asia, president biden planning to amend a u.s. ban on investing due to links on china's military. china sees farther upside risks in precious analyst, we hear from the analyst later this hour. this is bloomberg.

coming up on -- >> the first word headlines. u.s. is trying to pull out all of the stops to have 70% of americans vaccinated by july 4. president biden says that pre-childcare will be provided during vaccine appointments. cornish does -- more initiatives includes giving shots at schools and businesses. 52% of american and's are fully vaccinated. -- of american adults are fully vaccinated. >> dramatically different from last year's summer, a freedom of freedom -- joy, celebrations. an all-american summer that this country deserves after a long dark winter that we have all endured. >> the european union has passed between 50 million vaccinations -- 250 million vaccinations. they are on track to reach 70%

of their publishing vaccinated by july. more than 80 million people have been vaccinated fully despite a slow start to the rollout due to delays and regulatory approvals. it is really health officials say they found a probable link between pfizer and the covid-19 shots and dozens of cases of heart inflammation. the condition was in young men following their second dose. despite that it is expanding his vaccination drive to adolescence. more than 5 million have been vaccinated, there is no indication of a causal link. jps has begun partially reopening most of its beef plants across australia after the cyber attack that has forced it to halt operations. the canadian beef facility in alberta has also resumed reduction -- production. the ransomware group known as rebel was known that's before

the hack. -- was responsible for the hack. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. shery-ahn: a ban on investments linked to -- china's military. investors left compute about the extent of the reach, subsidiary forms -- firms, what we expect them to change this week? tom: president biden has been wrestling with this issue since they took office. what we are looking at now is the treasury department taking control of this. they're going to put together a list of chinese companies that potentially face financial sanctions that have links to or connections to the defense sector here in china or the surveillance sector. that is a change because previously up until now, it has

been this blacklist blinked to a -- link to a defense department report. the other important change the criteria with which of these companies will be assessed has changed as well. under the new list of the companies will be looked at in terms of connections to defense and surveillance. previously under the trump mandate the companies were looked at in terms of their connections to the military, whether they were owned or controlled by the military. that is a significant change as well. we know that many of the companies on the list will be kept on this new list being drawn up by the treasury department, other companies may also be added. the reason for that is during at this as you have alluded, inject some clarity and legal sustainability into the project after some notable legal challenges. shery-ahn: we are also hearing what way -- hwawai overcome

the obstacles of this blacklist. tom: they are the standout, the most notable chinese company to be hit and powerfully so by u.s. sanctions and restrictions in terms of technology hardware and software. it has felt the impact of that. you need to look at first quarter sales numbers which fell almost 20% grid they are putting in place a new strategy and have announced their harmony os operating system which will on some level compete with apple ios and google android. the focus for them is on the internet of things space, providing a platform that connects everything from your smartphone to your car, that is part of the shift. they're going to be competing with others in this space, notably here in chana, -- china come there looking at other areas to try to find new revenue streams because the sanctions in the u.s. has been restricted for

this business indeed. shery-ahn: we saw that holding a call, what do we know in terms of back and forth between the u.s. and china right now? tom: on the surface the relationship around trade in the economy is becoming a little bit more constructive. you have four cabinet level meeting since cabinet -- president biden took office. the most recent was between janet yellen, both saying that the talks were constructive and they talked about areas of corporation, both sides saying they expect the talks to continue. as a reporting bloomberg notes as well, the decision by president biden to relook at the origins of covid-19 and whether indeed it made or did originate from the will hound -- will hand -- wuhan lab could put a blow.

things are looking at them or concert of coming out to look at what comes out in terms of this covid-19 origins report from u.s. intelligence agencies to determine where this relationship goes next. romaine: a hard one to get over --haidi: a hardwood to get over. we have a word -- a hard one to get over. we have a word, gbs anticipates global operations to reach full capacity. they will resume full capacity on thursday. they have already started to partially reopen most parts across north america and here in australia after that cyberattack forced the world's largest meat processor to hold operations. it is make significant process -- progress and to resolve that attack. we also heard from the fbi on wednesday saying that the ransomware group rebel was her

responsible -- was responsible. this is a group that emerged in 2019. coming up, shares of amc have skyrocketed, to an evaluation of more than half of the company's listed on the s&p 500. we will have more on that in the rest of the action in the stock rally next, this is bloomberg. ♪

haidi: lettuce is at the latest on this -- let us get the latest on the gravity defying moves, the stock nearly doubled to close at a record in the regular session on the rally continued through extended trading and bringing memestock up for a ride.

what is behind this latest search? -- surge? >> the ceo is firmly embracing the reddit crowd, bitcoin was boring, look at the after hours were amc actually sorted 12% before -- another new memestock havard -- favorite which was down 41% here today, what was up 20% in the regular session and up again after hours. look at how amc brought the whole memestock group with it, a lot of momentum. amc up 95% for the day, holding several spots during the day with the surge of a one to 6% higher, have blackberry up 78%, and the biggest surge of them all was for bed bath and beyond,

43% of the float, it had its biggest gain ever. this again is a debt challenge retelling -- retailer. -- debt challenged retailer. discontinuing to move higher, it is now close -- just continuing to move higher, it is now close to his high today. the rally is calling the market values to hit 31 billion. that is not worth more than half of the company -- companies in the s&p 500 and especially when it comes to marketing ceo of amc, he is realizing the market value might allow him to tap more for the company and engage in his position. he is embracing this retail and sending love. he is offering a special screening for this group of investors, free popcorn -- popcorn, they are essentially the owners and they should

listen to them. meanwhile a very important, capital which had invested about 230 million in the company early this week turnaround and sold his shares in the company the very next day saying it believes the stock is overvalued. the memestock crowd clearly disagrees. haidi: hedge funds and professional traders not backing down on those bearish partisans -- positions, we want to see a show down here? >> a different situation than with gamestop, goldman sachs according to trading data says that short positions have continued to rise for amc for the past nine straight weeks. while we have seen the rally in the stocks continue to rise we have not seen the interest drop. that is an indication that a lot of a professional traders are not going to back down. they are aware that there are's heavy debt in the company, there

is a lot of problems with the intent to move it -- use its value very carefully to amend those problems. meanwhile the memestock crowd continuing to send the stock higher. the wording on a lot of the subreddit that forms is highly bullish, to the moon, they do believe that they are going to press another short squeeze, gamestop as you remember back in january surge from 1500% higher, that cause a lot of pain to hedge funds. haidi: the latest on those memestock spirit for a deeper look at what stocks, securities, and stories, or dominating the global market conversation turned to most go on the bloomberg terminal. co-finder -- cofounder has been a credit -- he is certain of one thing, every boom ends in a bust. bloomberg eric spoke with him

for a friend quote special. -- front row special. eric: the most important character six is that there has been a frenzy of -- the most important characteristics is that there is a been a frenzy and a dominant present -- presence in the market,. spacs, facilitating public offerings, you're in a transaction risk -- rich environment, unlike 30 years earlier, in business with the sole goal of buying and selling companies. when they are doing this in a hasty way and they are using aggressive lenders who are dying to give them money they are always two kinds of opportunities in the market. where the acquisitions take place, people need capital and that is not always an efficient process, it is not always a neat

process, it is a process where there is a lot better risk return visibly buying commodity high-yield product if you will. the other thing that happens when you get into an aggressive market is that people make mistakes. it takes time for those mistakes to be apparent in the market. you have to be patient and wait for those mistakes do happen and that is what creates all of the stress and distress. eric: it is a recovery you play like any of her recovery or this one -- any other recovery or is this one different? >> everything was cheap, now we are in a market were generally people are comfortable, they feel like the economy is coming back, an appointment is low. everyone is trying to put money out but in a world of very low rates. what is a little different this time in my view and it will take a while for it to play out, is the magnitude of the government's programs both treasury and fed.

and stimulating an economy that already is on the uptick -- in stimulating an economy that is already on the uptick very -- uptick. eric: does it frighten you? >> yes. we have -- we are entering the land of the unknown with the extent of stimulus that is going on with fiscal and monetary. we started to see some awfully bright people pulling the alarm hard. my only concern is not that we are going to have rates spiked to the moon, the economy will do self-correcting. as long as there is a lot of money chasing opportunities that will cause competition of our lower rates. maybe that means we do have lower real rates for a time because of the inflationary issues which is almost partial to this. the longer-term thing that i worry about is the hangover from all of the stimulus. when you add this must debt to the federal -- this much debt to

the federal debt now that project out 15 years and you figure out what percentage of the federal budget spending is going towards a surfing for the interest it does not leave a lot of 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 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. (announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back, obliques, hips, and glutes.

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word headlines. the federal reserve will be gradually selling portfolio of corporate debt purchased through an emergency lending facility last year it during the pandemic.

sales will be gradual and orderly and will aim to minimize the potential for any adverse market impact. by watching daily liquidity. the federal provide more details before sales began. -- the fed will provide more details before the sales began. we are told the treasury department will create a list of companies that could face financial penalties for ties to beijing's defense and surveillance technology sectors. former president trump's band focused on companies with the chinese military. foreign cryptocurrency investors as an attempt to crack down on tax evasion. crypto brokers and exchanges to tell the irs about four individuals in directly holding accounts with them. they would exchange information with foreign governments, in exchange for details regarding

americans avoiding offshore exchanges. -- in retaliation for duties slapped on big tech copies like facebook. the decision by the u.s. trade representative the first up to 180 day levies that would hit goals -- goods. from the u.k., austria, italy, spain, and india. global talks on a broader solution for taxing tech companies are ongoing. record number of covid-19 debts on tuesday after a hardluck pain that stuck down to contain the virus spread. meanwhile in singapore says it is allowing the use of china's vaccine after the weld -- world health organization approve the use of the drug. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. shery-ahn: it is really health

officials have found what they are calling a probable link between the pfizer vaccine and cases of heart inflammation and young men. the health ministry said the cases followed the second dose although pfizer says there is no indication that the cases are due to its vaccine. joining us to discuss this is michelle cortez. michelle, what do we know at this point? >> we are talking about a very small number of these cases called mile could i does -- mild coditis. among those 275 million people, -- the number seems a little bit concerning, it's quite a bit higher than you would expect normally but it is not a high -- as high among people who would get the viral infection on his own. they are tracking this side effect and they are looking to

see if they will be getting more of it as they look more for it. at this point it is something that people need to be aware of. it is not something that is -- needs aggressive treatment, young men to come out of this without much problem. shortness of breath, trouble breathing, some fluttering of the heart but it is something that people need to be watching out for. haidi: it is going to create more vaccine hesitancy, particularly when it comes to younger people where the risk-benefit is already skewed them when you're talking about more vulnerable populations? >> that is the issue. remember when we are talking about a vaccine, it is to protect somebody against the theoretical risk. now especially these young men, 16 to 19-year-olds may not ever get coronavirus and if they did they might come through it no problem at all. getting a vaccine that could

potentially cause harm is always problematic. there are other people -- he said to keep in mind. you have to remember that these numbers are actually quite low, talking about 275 out of 5 million people. they recover without a problem and we are talking about the virus itself, we are going to need to vaccinate a huge percentage of the population in order to stop the virus from circulating and infecting higher risk people. there is a low level of risk to younger people that they are taking on, protecting their parents or grandparents, they need to keep in perspective. haidi: we heard earlier from joe biden trying to renew those crossroads efforts to get vaccination levels to at least 70% of people having first shots, nothing 52% of vaccinated people within the u.s.. -- not seeing a 52% of vaccinated people within the u.s.

the seven day average of doses has quadrupled in two weeks, and a quarter of the nearly 14 million shots were given in the past week alone. let's go to tokyo euro chief for more details. as the fed -- as the emergency conditions remain this is pretty good news be what is driving the acceleration as we head towards the olympics? >> it is good news but we are still talking about people 65 and older. some initial teething problems in the booking systems they used to book their vaccinations at local clinics have been worked out. plus they have another option, massive vaccination centers have opened up in tokyo and these are run by the military and they have been operating for the last week in which time they have administered tens of thousands of shots. more of these sites are set to open in big cities across the country so people will have that other option to avoid bottlenecks in their local neighborhoods. haidi: what about the major

companies that plan to vaccinate their employees? >> this is the rollout of the vaccine to the under 65 and we have already seen major brokerages as well as big order makers like toyota saying they are interested in doing this. the government wants these shots to get started on june 21. we are still waiting on some details from the companies on how they plan to do this, these companies tend to employ their own doctors and nurses to look after employee health on a daily basis and they have a lot of big facilities that could be appropriated for vaccination site. haidi: there are a lot of challenges in terms of getting all of japan vaccinated. >> that is right. these big companies are going to help get these vaccinations to the under 65 role, most japanese people do not work at those big companies they work at small and medium enterprises who do not have the infrastructure to do their own vaccination.

they will be relying on the local authorities. japan's decentralized systems mean there will be asymmetry in which areas he finished first and japan does have a history of vaccine hesitancy so there will be a section of the population that just does not get vaccinated. shery-ahn: there with the latest on the pandemic and japan. assume shares -- zoom shares fell and the forecast for the quarter suggest they are still concerned about growth as more vaccines are rolled out and lockdowns are lifted. the cfo spoke to bloomberg about the results. >> what we all know for sure is that we are never going back to a world the way that it was before. we are honored to have cap people connected through this pandemic, we are also excited to be able to now enable people to work flexibly, if people want to work remotely, in the office, we

are going to be there. we are evolving from being this meetings app to being the platform in the communication hub -- and they can indication up for our customers. that is going to be the long-term potential growth for us, through meetings, phone, events, and apps which is going to be available later this summer. we are really excited to be a key partner as we move through the world in another way. >> what you have to say to the investors who are still concerned who think that zoom cannot continue to grow as it has in the world is changing but it has not stopped changing yet. we are getting closer to normal. >> we are really pleased with the numbers that we announced yesterday, guidance for the year approaching $3.9 billion in year-over-year growth.

we also announced we had our largest enterprises deal ever, in the history of the company, we see continued strength and momentum in the market. we are excited about the new phone which be our internal markets and international continues to be a really strong point for us. all of that combined, -- sorry. the platform positioning leads to long-term potential for the company. >> international is making a bigger portion of the pie, can you give us some color where you intend the growth to come from internationally given these new trends? >> what we have seen it happen is an acceleration of video communications globally as well as increased brand awareness for zoom which has led to increase adoption globally which means we are able to sail -- sell more in

the markets. we have seen growth everywhere, latin america was a strong point for us. we are excited about the potential. >> you have empowered this whole remote work revolution as companies make big decisions about whether to come back fully or hybrid or not at all zoom is going to be a critical tool. what is your philosophy internally? are you going to allow remote work? are you going to expect office full-time? >> we are still learning and finding our philosophy around this. we actually testing -- we are actually testing opening an office, we are going to watch and see how our employees use the space, works well for them and we will continue to confirm that inform our internal philosophy. -- that will continue to inform

our internal philosophy. haidi: precious metal, gold holds five-month high as traders assess the fed taper risk. this is bloomberg. ♪

shery-ahn: the look at the commodity space come we are seeing gold holds near the five-month high as they assess what the fed will do next. the fed beige book showing modest price gains, evolutionary concerns. copper at the moment a little bit higher but this of course after feeling the pressure earlier in the week. we have seen perhaps a demand concerns over copper due to chinese command could be a little bit shot off -- soft. soybean, also week, the rally in -- wheat, a rally in the new york session but we saw weather concerns really dashed got in brazil as well. live cattle futures also rebounding after a five month low, after concerns what is happening with that cyberattack on gbs and their facilities. have announced they will have

full operational capacity here in the u.s. starting thursday and a full operations later in the week. haidi: we have seen gold holding near its highs in five months, investors assessing the fed view of inflation. joining us is -- great to have you with us spirit led us throughout this refresher chart to take a look at the performance that we saw in may, the best month for goal -- gold since july. a little bit of consolidation for gold prices. what else the market going to be focusing on? >> gold is being pulled by its physical attributes as well as the macro environment. we are seeing the physical market recovering but over the course of may it was really macro drivers that came to the forefront. investors shifted their focus from the tapering risks, what they might be thinking about

tapering and shifting that focus towards inflation. the view that the fed viewed inflation as transitory really helped to lift gold prices higher. that big turning point has really come from the etf, three of the five months over the course of may we have had in flows of about the descents which is really good prices, a key factor to watch in the near term. haidi: where do you see resistance in prices, we are looking ahead to the payrolls this friday for another puzzle piece if you will. >> 1900 has been a critical level for the gold market, if we look at where investors were positioned last time we were at 1900 back in early january, positioning was a lot heavier. investors about 70% lighter than they were previously, if holders are about -- this bodes well for gold but that 1900 level is proving to be quite tricky. once gold prices amended to

close up 1900 on a sustained basis the next key hurdle is going to come around 1960, gold markets and flow -- inflow has been able to provide the india demand. haidi: how much of this factor into prices given the demand from india? >> gold markets rely on the support of the down side but it is really the investor demand that drives up the upside momentum. over the course of the first quarter and certainly into april when we saw the etf outflows, the physical market was crucial in providing that floor for the gold market. when we saw those dips below 1700 it was demand from india, china, recovering across asia that helped gold. prices held well because we were seeing that demand coming through. in the absence of that demand we would have seen much lower

prices. there is support for the physical market and the upside is being driven by the macro environment. haidi: one of those factors in the microenvironment has been the lack of chips, the global chip shortage that we have seen. what impact will that have on the metals industry? >> the second half of the year is quite complex, looking at the precious metals complex as a whole. one hand, we see the macro drivers continuing to be supported, we expect the dollar to remain on the weakening trend but we expect real rates to -- that impact the other precious metals such as silver. then we are looking at some nuanced factors that really dampen the recovery and when it comes to the chip shortage is has had quite a significant impact when it comes to platinum. we were expecting a strong recovery across auto production to lift demand for both platinum

and palladium but because of the chip shortage and the recent estimates, those like they will reduce the production run in the second half of the year. it looks like that demand profile will be a little bit softer, but for some of the metals, given that we have supply shortages, it is not impact their upside momentum. it means metals are still expected -- expecting a heavy deficit. haidi: are you saying a meaningful reaction when it comes to cryptocurrencies being the new inflation hedge? >> i think investors are looking to where they should be positioning when it comes to the company inflation risk. inflation has exceeded expectations and the fed sees it as being transitory and we are seeing and we are seeing inflation take higher so across markets generally come investors are looking for where to be best place when it comes to the rotation and equities. we have seen it across metals as a whole, gold has become back

invoke because of the inflation risks take higher and there is a debate whether cryptocurrency is the place to be. if we see inflation ticking higher as well. we do not have the same data that we do for the gold markets, for the cryptocurrencies would prove to be a good inflation hedge. we have seen that high and unexpected inflation that when golda tends to be a good inflation hedge. haidi: it was great having your insight, versus metals analyst at standard chartered bank. we will be talking to one of the gold firms, he joins us in the next hour. videogame companies have been on the winning run during the pandemic, we check electronic arts the book with ceo andrew wilson as more countries emerge from virus-related restrictions. this is bloomberg.

haidi: electronic arts is set to debut the latest release of their popular toddle -- title battlefield. this comes after 2020 turn to a bad year for lockdown, the games became entertainment. ceo feels good about 2021 as well. >> we have seen growth during my

tenure, there is only one other time when we have guided anywhere near -- above 7%. this is a big jump for us, we some acquisitions that are helping drive that growth. we feel really good about the year ahead. the industry is on fire, more people are recognizing the value of games. our network of players is growing, we have great content. you mentioned battlefield coming this year in addition to fifa and madden. >> any details you can give us a battlefield, how big will this be? >> it is going to be huge. battlefield is such a great franchise, it's been a number of years since we marketed that in the game -- marketed that game. we have a release trailer come as a small snippet of consumer demand we did just a teaser yesterday and the results were through the roof.

it was just a teaser that we did as so it is not really speak to the game itself there will be a lot more of that this week. do speak to how much anticipation there is in the market. -- it doesn't speak to how much anticipation is in the market. we broke records for retweets and lakes. i love what -- likes. i love what the team is doing with the game. there is a lot of anticipation in the market as well. >> tell me about the gaming demographic and how it is changing. are you seeing more kids, women, folks of an older generation gaming because that is what we are hearing from other gaming ceos. there is not just new gamers but an entirely new audience who looks and uses these games differently. >> we have been seeing that for a while. really, video games are for teenage boys and not we see it from 60 to 70 and beyond. at least half and even more than

50% of the population are women, i am watching my son who is six and my daughter who is nine get into gaming and the beauty of what games can bring and how i'm able to connect with my kids. i am hearing that more and more as this is not just how can i go and escape the world but how can i connect with my friends, my family, people around the world through this wonderful form of inter--- form of games. the last year has only accelerated that. shery-ahn: electronic arts ceo therapy at a quick check of the latest business flash headlines, softbank has increased margin loans for alibaba over a million dollars to 10 million, at least 14 banks have joined the japanese conglomerate this year. -- alibaba has been pledged as collateral for the loan. this continues as the global investing spree after the

collapse of greenville capital -- green cell capital invested $1 million. electric vehicle production shifted to the u.s. if demand continues to grow. the carmaker is planning to introduce two new models in the west starting in 2022 including the crossover. both will be made in japan. a topic that's a topic that have no set supply chain issues needs to be resolved before toyota can decide on building ev in the u.s.. a new smartphone operation -- a new smartphone operating system, the company expects is harmony os software to power around 200 million of its own smartphones and a hundred million devices made by third parties before the end of this year. it is the -- the developer was exonerated after huawei was

blacklisted from key google services. let us give you a check of the markets after a pretty tepid session in the u.s.. haidi: investors continue to weigh the inflation and monetary policy outlook. we are seeing gains of about .25% when it comes to trade in new zealand, sydney session is trading higher, a few minutes from that staggered open. u.k. futures fall into negative territory. the market opens in seo, sydney, next. -- seoul, sydney next.

shery: welcome to "daybreak: asia." i am shery ahn. haidi: i am haidi stroud-watts in sydney. asia's markets have just open for trade. our top stories this hour, asian stocks at fort mick start as traders evaluate the latest fed comments. the bank of japan board member says the bank will ask if tapering will trigger a spark in

the yen and president biden -- delight link to the military. the policy faces a challenges and has confused investors over its scope. shery: japan and south korea coming online. nikkei225 under a bit of pressure, consumer discretionary stocks only to get extent. we do have communication and health care sectors higher at the moment the topics getting .2 of 1%. japanese yen holding steady at the 109 level. it has been weakening this week around the 110, watch out for jgb. the bond is not traded since tuesday. trading activity in japanese government bonds waning as of late. look at the kospi, we are seeing gains for the fifth consecutive session and at the highest level since may 10. this coming at a time when the korean won is higher against the

u.s. dollar, but this after dropping from that three-month high already. analyst saying investors could have booked profits from recent rise coming at a time when inflation also seems to be accelerating in the country. haidi: taking a look at the start of trading in australia, the asx staggered open eking out small gains. watching out for the energy sector. we had morgan stanley saying the energy sector is seeing underperformance that is overdone. we are watching the aussie dollar after a five-year session for the greenback. in new zealand, a smaller trade deficit than expected in data out earlier today, and we are expecting trade and retail numbers out from australia as well, a roundup picture after strong gdp numbers as the recovery is ongoing. the kiwi dollar trading softer this morning. shery: our next guest says the

volatility in markets and spring opportunities. a head of asset management, great to have a -- have you with us. when you say opportunities in the market where are you looking at right now? >> the energy transition sector has been hit quite hard recently. financials, traditional energy is done well over this year, but energy transition are due for a comeback. i think growth has been hit quite hard because of inflation fears, which i think are exaggerated, so that has led to buying opportunities as well. shery: we have seen china trying to clamp down on some sectors of the market including speculation in the commodity space, not to mention regulatory concerns about tech giants as well. where do you go to avoid all of these concerns?

>> i think that coming out of china we have seen a focus shift and the market has reacted. when there was a clampdown on tech stocks, growth exhibited volatility, and that brought in opportunity. the commodity clampdown is a little bit different because we do not know what that actually means. if you look at commodity prices they are still off of the highs they saw it year. from a technical basis you would think that they have some upside to grant, but because of comments coming out of beijing, they have become more risky, and we are neutralizing some of our positions on the commodity space right now. haidi: when it comes to job earning another measures, increasingly strict measures taken on the currency do you think that you on -- yuan will

be a key story this year? >> i do not think it will be a key story but it does bring interesting trading opportunities. i think it will oscillate between 6.4 and 6.6 level. i know it has broken 6.4 for a few days but i think it will return to that range, and that will lead to good buying opportunities as it oscillates up and down, but i really think the story that is here is going to be in that range, and we may see depreciation in 2022 of the renminbi. haidi: are you looking for inflation edges, opportunity in volatility right now? >> opportunities. the inflation fears were exaggerated, and they brought in a lot of opportunity. i think it is more or less transitory, and we are coming from a very low base when it

comes to inflation. the math for this recovery is different than what we have had in the past and that should be accounted for. i do think that the key here is that inflation fears will create volatility in the markets for months to come, but those are buying opportunities. always hedge or downside but they are opportunities as we see them. shery: we are seeing cryptocurrencies being mentioned as potential edges for inflation , digital gold if you may. what do you make of this? >> so cryptocurrency -- there is no other way to slice it, right? there are three ways it becomes viable. it is a use case, regulations, and portfolio management, so risk control. right now we do not have any of those, but what we do have is an uncorrelated asset class.

that way it is a hedge or something investors can use to disconnect from the rest of the market and i think it will continue. at some point it will be very hard not to compare cryptocurrency to commodities for example. at some point it is going to get there. haidi: paul sandhu, let's get you to vonnie quinn for first will headlines. vonnie: the u.s. is pulling out all the stops trying to have 70% of americans partially exited by july 4. president joe biden says free childcare will be provided during vaccine appointments. other initiatives include offering shots at schools and businesses. biden says 52% of american adults are now fully vaccinated. pres. biden: because of that america is headed into a summer dramatically different from last year's summer, a summer of

freedom, a summer of joy, a summer of get-togethers and celebrations, and all-american summer that this country deserves after a long dark winter that we have all endured. vonnie: meanwhile the european union has passed 250 million vaccinations. the eu commission president tweeted the block is on track to reach its target of exiting 70% of its adult population in july. she says more than 80 million people have so far been fully vaccinated despite a slow start to the relevant due to delays in regulatory rules. it is really health officials say they have found a probable link between pfizer and be on tech's, charts and cases of hard inflammation. they found the condition and 75 young men following the second dose. it is expanding its vaccination rights to adolescence. more than 5 million is really seven exited.

-- vaccinated. jbs usa says it will redo test resume production at all of its facilities after a weekend cyberattack forced her to close operations across north america and australia. the company said many other plants have already presumed reduction. the fbi confirmed a believes the ransomware -- 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 am vonnie quinn. this is bloomberg. haidi: we are looking at fast retail and trading early at the turkey session. we are seeing a drop of 2.5% after we saw mays declining year on year. this is trading at when it comes to retailers. decline of .6 of 1%. customers are including up to 20%. we are seeing that stock lower

by 2% but the company saying they had seen obviously the expansion of the declaration of state of emergency impacting their sales. the extension of that period also graduating to the lack of news and information, dissemination of new products, and the like. shery: we have exclusive reporting on biden's plan for chinese companies blacklisted under president trump. we will be examining for more clarity. we are live at his coat -- 22 of the jp morgan summit. our guest gives his outlook on the chinese farming sector. this is bloomberg. ♪

shery: a scuba now, president biden plans to amend a u.s. ban on investments in companies linked to china's military

listing of specific names that we face penalties after the trump era policy left investors confused about the extent of the reach to firms. our executive editor. what kind of changes could we see? >> what do we know it so far is the scope of what companies go onto this blacklist look like it is going to be changed with 12 entities connected to surveillance technology segment. that could be a widening of the scope because under the trump administration the definition was companies controlled by the chinese military. we do not have all of the details and a lot of this will depend on how the biden administration implements these rules, but there is a potential for that lift to be much broader. haidi: that -- does that give us further clarity or investors further clarity when it comes to out subsidiaries into the

because that was an area of confusion? >> there is some clarity in terms of how subsidiaries will be treated. they will also be subject to these bans which the biden administration will make clear in these amendments they are planning. shery: it seems that the biden administration is ironing out some of the confusion we sought during trump era policies, right? how do chinese policymakers feel at this point in time about the biden administration and his strategy on beijing? >> i think there is a lot of worry or suspicion in beijing that there is not going to be much of a substitute change between biden -- substantive change between biden in front. the biden administration has largely kept all of the policies put in place by the trump administration in place and cases such as this potentially broaden their scope. there is worry and suspicion in

beijing that the relationship will get worse before it gets better. haidi: our greater china executive editor. china's surprise decision to allow all couples to have a third child may do very little to reverse the declining birthrate. the country will need more supportive policies when it comes to childcare, measures to curb costs associated. a group cofounder, james young as a book out on white demographics are key for the innovation rate. he also weighed in on this debate. >> the restriction on the number of children being relaxed will not be enough. [indiscernible] is only 1.3. that is even lower than japan, which was one of the lowest in the world. china needs to boost from 1.328

or sustainable level of 1.6, 1.7. the average level of developed countries is even higher. china has a long way to go. we are expecting china to completely reverse its family mining process to start rolling out generous support programs in the future. >> what are the most important changes china could make in order to support a higher birth rate? what needs to be done to address the issue? >> there is a lot that needs to be done. [indiscernible] a cash bonus, a tech subsidy, social security tax or income tax to couples, especially couples who live in the city.

the rate of birthing children is very high and will do a lot in reducing thousand burden. try to as the highest housing to income ratio in the world in major cities, and china can give housing discounts to couples with two or three children, and that can help quite a bit, and china needs to build a lot of daycare centers. the number of children in day care centers is very small compared to other countries. china needs to build tens of thousands of daycare centers in major cities among many other things. in the past china is the only country [indiscernible] tightening restrictions on kids. [indiscernible] generous social programs to support parents and children.

>> let's get to the trip.com portion of your work. how have you dealt with trouble restrictions and what does the picture look like to you right now? >> our main markets, the chinese domestic market as almost completely covered. we achieved positive growth compared to pre-covid. we see modest increase in many markets, and we have seen very good recovery in the u.s. markets and a little bit in europe. we expect europe will start to recover very well in the near future, and the u.s. obviously will do very well. long distance travel will take another six to 12 months to recover. in many asian markets, other

travel markets are smaller and have a small domestic market. it will take longer to recover. shery: the trip.com cofounder and chairman there. we get the latest on the jbs cyber hack as the company prepares to fully resume production on thursday. this is bloomberg. ♪

haidi: jbs usa is that to resume production at all facilities on thursday. other factories in north america and australia are in the process of coming back online after that cyberattack. joining us now is our asia agriculture reported. what is the latest we know and

how quickly can they presume corporations? -- operations? >> we have had a bit of a quiet -- which is kind of frustrating people trying to gauge what the exact supply chain disruptions might actually be, but it does look like good news with plans coming back into operation in the u.s. australia is a mixed picture. we have not heard much. the other thing we have heard is there might be increased manual processes in the u.s., which is kind of -- haidi: workers coming back. >> we will see how it pans out. shery: how global it was the impact here? do we have any more clues. you mentioned north america and australia. what about other regions? >> jbs is the biggest meat producer, so you can expect is to ricochet globally. a country that will probably be

hard-hit is china surprisingly. they account for one/three of jbs's actual revenue so any holdup will hit china what are. that has been going up since the african fever as holdup supplies in the country. china, it looked like to could be suffering. haidi: this is coming at a time when we are seeing inflation pressures across a lot of agriculture products. it does it raise concerns about broader food security as well? >> absolutely. this feeds into that story we have been seeing for the past few months of higher food prices globally, and this is another hurdle for economies to overcome. it is not a good one. it is probably one not foreseen by much of the world, but it feeds into fears about food. shery: our agriculture reporter

with the latest on the jbs cyber hack. goldman sachs says bullish commodity thesis is no longer about chinese demand, it is about develop market's recovery. and of commodities research, our guest. >> this is not about chinese demand growth, not about chinese speculators. it is about scarcity and supply in the dm letter recovery, and that is why you see the correlation between copper prices and western pmi. it is a sharp departure from where we were 10, 15 years ago. when you look at china's position today it is similar to the position the united states was in into thousand 3, 2004. the u.s. was this incumbent commodity consumer, weak margins that had been there for long time. china was coming up small and what happened it started taking commodity supply from the

americans, prices go up, you estimate dips down and americans are going, what is happening here? blame the speculators when in doubt. what is happening to china today? exact same thing. demand is rolling over, prices are going up. blame the speculators. what is going on is the u.s. and europe who have been dormant in this market are back. shery: -- >> is that real? is positioning really heavy and some of these commodities? >> that might be the ironic thing. this market is long on conviction, short opposition. the position in this market is very light. oil is average, copper positioning is back to last july's level. you look at agriculture, 20% off the high. those numbers are looking at volumes over the past 20 years so you are not even at the peak,

yet look at copper prices, multi-mike, bring prices, all-time i. you take those positions and turn them into dollars and take mobile a um -- aum, the numbers are just like this. the overall positioning from a historical perspective but more importantly from an a.m. perspective are incredibly light. haidi: our global additive government -- global additive commodities export at goldman sachs. number one is said to claim a third seat of the oil giant board. a private equity investor is tracked to be elected amid growing pressure from investors to address climate change and financial concerns with the key issues being increasingly internally. -- as the electric vehicle production estimate continues to grow. the carmaker is planning to introduce two all electric models in the u.s. starting in

2022. both will be made in japan. industrywide supply chain issues at the shortage of living in ion batteries needs to be resolved before they can decide to build ev's in the u.s.. apple is asking its employees to return to the office three days a week starting in early september. in an emailed they said most workers will be asked to come into the office mondays, tuesdays, thursdays and will get the chance to work completely remotely two weeks every year but all retail stores will be open this month. de grey mining as been -- has made one of the country's gold discoveries in a region better known for its iron ore. we have been managing director to take a look at prospects for the company and the outlook for gold. this is bloomberg. ♪

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shery: we are getting latest you might numbers out of hong kong and singapore. in hong kong the number coming in at 52.5 for the month of may. this is higher than the previous month and a fourth consecutive month where we are seeing these numbers in expansion territory. we have seen a recovery in hong kong led by exports, but the recovery uneven given weak customer spending it is so vexing roller. and singapore, market pmi coming in at 54.4 for the month of may,

and acceleration, and expansion from the previous month. in singapore six consecutive months of expansionary pmi numbers as we continue to see the economy recover. just last week we got first quarter numbers for gdp in singapore growing at the fastest pace in more than one year, so the recovery seems to be continuing across parts of asia. haidi: parts of japan still seeing uncertainty as we deal with a prolonged state of emergency being extended, still waiting when it comes to forward indicators when it comes to pmi. the final reading up 36.5, firmly in contraction territory. it is a slight improvement over the 45.7 of the previous number, so composite reading coming in at 48 point eight, marginally an improvement but still in contraction territory. this as we continue to see analysts suggesting potentially if these numbers continue we will see a fall back into

recessionary conditions for the second quarter in japan. the uncertainty into the economic recovery and whether the olympics go ahead will continue. shery: the japanese yen holding at that 10 nine level while the nikkei225 and topix after positive, reversing losses we saw at the open. nikkei being held by her by munication enough to stocks. every sector in the green as we continue to see the kospi also getting ground off a fourth consecutive session already. we are seeing the korean won getting ground over the u.s. dollar after dropping from that three month high. we continue to see more inflation accelerating across these markets especially across south america -- south korea with a price gains above 2% above the bok target for the second consecutive month. the target is also led higher by .7 of 1% after we saw declines

for the first time in three days. we are watching that spat between australia and -- as stocks gain ground with rbnz officials walking back from more obtuse talks we sell as we. look at the commodities space, it is all about metals and what happens to those prices as we see inflationary concerns. gold futures holding at that five month i as investors are assessing what the fed will do next. we saw the beige book finding prices increasing moderately. silver futures were higher, copper higher at this point. we have seen a little bit of downside pressure this week as indicators slumping, the premium falling to the lowest instead it was first published back in 2017, iron ore under pressure. haidi: we will continue with the precious mining metal companies developing and exploring new projects have the best return

potential among peers according to the rbc and something our next guest will appreciate. de grey mining is made one of the most significant gold discoveries in a region no better for its mass iron ore reserves. he discusses this. glenn jardine great to us. is what you were seeing at the moment translating into money investment super cycle? >> it is certainly another boom and we are seeing that in australia across all commodities. nickel, iron ore, old -- gold. whether it is another investment super cycle i am not sure but we are feeling in western australia. shery: from discovery to distraction is very long. how long is it for this goal discovery. -- discovery? how much is it to make this investment decisions?

>> price forecasting is extremely important. in terms of gold price we see that remaining strong for a long time because of the quantitative easing that has been going on for over one decade now. we see gold being quite strong. it is a way off for us for production. we just recently discovered the goal project in western austria and we announce that 12 months ago, and we have been growing that deposit ever since. shery: some analysts he the gold market editing for significant oversupply this year. what do you think? >> i do not particularly see that. i still see demand being strong, and as far as we are concerned we are some way off reduction. sentiment will affect our stock, but more importantly the expiration of results we are achieving are going to have a greater impact. shery: we are hearing chatter

about mma's and the gold sector. are you hearing anything more about industry consolidation this year? >> we are hearing about industry consolidation but a lot of account producers have merged with producing assets and there are quite a few projects under development. it is quite possible any mma will have to wait until the risk portfolio has been reduced accordingly. haidi: what about partnerships? do you see bringing on any partners with this project? >> not at this time. we are comfortable with the internal capability we have got and the infrastructure that will be able to bring this into production. we have seen that from all of the modeling we've done the maximum volume will take product introduction. haidi: when it comes to crypto,

bitcoin is obviously not the new gold yet but in a few years time it could be. where do you sit on that debate? >> there is still a lot of uncertainty around bitcoin and gold is still an available currency and there is a lot of dust to settle on the whole: currency angle, and as i said before there has been a lot of quantitative easing so i see gold running strong. shery: where do we go for physical demand and prices, because we saw the weakening demand from india? what are you seeing in the physical space? >> i think if you speak with the west australian mint and mentors around the world -- imters -- minters around the world they see very strong demand for go. shery: thank you very much, the managing director there. we are live with day two of the

jp morgan china summit with our first major interview. ceo john earlier gives his outlook -- john alere -- olyer gives his outlook. this is bloomberg. ♪

vonnie: this is "daybreak: asia ." i am vonnie quinn. the federal reserve will begin gradually selling portfolios

that -- in a statement the fed says sales will be gradual and orderly and will aim to minimize potential for any adverse market impacts. liquidity and trading conditions. bloomberg is on president joe biden plans to amend the u.s. plan on investment in companies linked to try to's military. we are told the treasury department will see a list of companies that could face -- tied to beijing's defense. president trump's ban targeted companies affiliate with the chinese military. the u.s. estimate implementing tariffs of up to 25% of imports on six nations in retaliation. the decision diverse up to 180 days levees on goods from where

to car sales. coming from india, united kingdom, turkey, and others. the west may seek data on foreign cryptocurrency investors additives to crackdown. they want crypto brokers to make changes to tell the irs about foreign individuals indirectly holding accounts with them. edward then tried to exchange that information with foreign governments in return for details on americans evading taxes by using offshore exchanges. after 2.5 years of political turmoil israel's benjamin netanyahu is on the cusp of defeat after the opposition leader announced he is formed a coalition to top the country's luggage serving prime minister. it could be broke -- brought before parliament actually. the median replacement will be --.

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 am vonnie quinn. this is bloomberg. shery: our exclusive coverage of the jp morgan china summit continues. let's go back to hong kong where stephen engle is joined by our next guest. >> thanks a lot. we are at the jp morgan global china summit a two and our first guest is john oyler, the ceo and chairman of beijing founded global pharmaceutical and biotech company. good to see you and have you on bloomberg television coming i believe from the united states through the global china summit of jp morgan. i went to rescue obviously we are into your two of this global pandemic. i note you are an oncology specialist company, but i believe in the last interview we

had with you in august of 2020 it talked about you have certain expertise that could lend to covert therapies down the road. do you have progress on that front? >> we have been working a little bit trying to help companies with relevant technologies or clinicians that have ideas. it is not really in our sweet spot. we are focused on oncology but we do have manufacturing and clinical capabilities and have been trying to help out some people from that perspective as a collaborator. we will not be a source unfortunately have anything exciting or great in that area, it is not our expertise, but where we have things to lend we try to offer them up to our partners. >> i have you seen the regulatory environment globally, not just in china and cross-border for approvals change because we have a health crisis? >> i think it has been

fascinating to watch the speed at which things have happened. i really think it is a tremendous success story, also a story of failure. i think the regulators and a lot of the industry are trying to get scientific questions answered and get the infrastructure together to quickly bring great medicines to the market as happened. that has the potential for deep regulatory impact to up accelerate the timing of medicine for all types of disease. i think there are a lot of lessons to learn from that perspective, and as we saw for hiv several mechanisms were put into place and have been helpful over the last couple of decades. i think we are going through that iteration again and it will be positive for patients and the industry from a global perspective. >> we know there are a lot of geopolitics involved here with this health crisis and the pandemic, but you have been able

to strike a couple of deals internationally. amgen took a 20 percent state. more recently you of a deal for: distribution of drugs with novartis. can you give us a nutshell encapsulation of where those deals are going to take beijing? >> sure, in the beginning beijing started with the vision that as china joined the global system it could really address the biggest issue we have as an industry, which is clinical science. for oncology medicine the vast majority of the time, 90% of the energy to developing a medicine really happens in the clinic, and it may take years and even up to $1 million to get a new medicine to market. -- $1 billion to get a new medicine to market. in the united states one out of

20 patients is willing to be in a trial, but in china it would 24% of the world's new instances of cancer, when they joined the initiative it is going to have a very profound impact and enable us to run trials more quickly. a lot of times you will spend a couple of years enrolling patients, and the cost escalates and you were not getting the medicine to patients. beijing saw this 10 years ago and built a unique capability to accelerate clinical trials from that perspective. with amgen i think this is one of the things we thought we could do, or together and accelerate bringing some of their excellent medicines to patients globally. with novartis we have actually partnered around and internally developed medicine that beijing discovered and has developed. that is a program that plays to

his strength. we have seen a thousand patients on clinical trials. i think there are 17 registration trials going on today. we are approved in several indications in china, but this is a medicine that has a vast wealth of data around it in china and globally. it is unique in the breadth and depth of data at that it has. we have partnered with novartis, the second-biggest oncology company in the world, because fighting cancer is hard and you will need a partner and need combinations to be as effective as you can. from that perspective of a broader portfolio they can combine and have incredible commercial organization in u.s. and europe. >> what is it going to take to get more approvals by the u.s. fda for your drugs to be used in the united states? i know the inhibitor was the

first made in china medicines -- oncology medicine to be approved for specific use in the united states, but are there still huge barriers to get approval in the united states, and is lowering those clinical costs going to be the main way to get into the u.s. or are there still political barriers and severe regulatory hurdles? >> i think that regulators globally are probably the heroes of the last decade or two in our industry. they have really worked together to eliminate duplicative work and they strive to create a global system that can get medicines more quickly and cost-effectively to patients. i think they understand this issue. the united states has had the same standing policy. it has not changed. you need to run a study that has the right vetting, the right population and has all of the quality controls no matter where

you enroll patients in the world at that is always been the case. with the inhibitor, it was developed in china. we run clinical programs broadly across the globe. with this we are talking about, a little less than half the patients are enrolled in u.s. and europe. possibly have are in china. the hurdle is not different. the thing that is changing is we are actually working much better as an industry to bring sites in china and other countries to global standards so that they can participate. in these countries it helps patients get leading edge medicine, it seemed the best clinicians and helps us answer scientific questions were quickly and more affordably. >> i have to ask you about the senses in china that came up. the number of elderly people

over the age of 65 grew to 13.5% of the population, 8.9% 10 years ago. this is a product of better standards of living and better health care, but is it a ticking time bomb as well for cancer and other diseases as the chinese live longer? >> it is, and i think for neuroscience too, there is already a huge set of consequences every year. 3 million people are dying in china of cancer. the number is 10 million globally. this is getting worse, not better from a disease perspective, but the silver lining in oncology is what has been accomplished by the industry the last 10 years is really miller -- miraculous and we are a tiny part of that but the industry is miraculous what they have done. we need this in neuroscience and other areas too, hopefully that

will catch up. with an aging population there are a lot more issues for us all to do with physically and emotionally. it is difficult. >> beijing co-founder, thanks so much for joining us on bloomberg television coming to us through the bloomberg television global china summit. do you guys. haidi: steve will have a lot more from the global china summit, a head of investment banking and ceo will be joining us in the coming hour. shery: we are watching between the stock in japan getting a record i, talking about a 20% gain year to date already. they may be shifting their electric vehicle production to the u.s. if demand continues to grow according to a top executive. we are watching it very closely as we continue to see stock surging. coming up, a company for stated

decision that will handle international government policy issues as it expands across asia. this is bloomberg. ♪

haidi: jack ma's group is forming --

the giant is focusing on expansion across southeast asia hong kong, and macau. let's get more details with the asian investing team from bloomberg. for the longest time there were talks about alibaba, ant, it was i was like international expansion was secondary because they have such a massive domestic market. why is it more important now? >> the overseas ambitions are digital wallets and payment businesses and these are all data heavy operations. that would require report with local authorities, so the fact that they are setting up this team, and international government and policy team means that they do want to embrace regulators, especially in southeast asia as they expand overseas to explain their policies. shery: how has ant been doing

overseas? >> right now, they are predominantly relying on overseas partners. these would mostly be local wallets. they have nine overseas digital wallets scattered around southeast asia, including thailand, philippines. their plan is to export their technology and help these companies with cross-border business, but in order to do that they would need to communicate with local regulators and explain how their technology works and how they are handling data. there needs to be a lot of conversation around that in order for the fund to take off. haidi: all of this comes amid slowing growth and growing scrutiny back home. is the regulatory overhaul almost over for ant in china? >> that is a good question.

i think it will be quite a bit of time before we see the completion of their overall. right now they are still in the process of changing itself into a financial holding company. the list of requirements from the central bank for ant is quite expensive, so it will take some time. the company's plan so far is they do still want eventually to hold a public offering. shery: bloomberg's asian investing team with the latest on ant group. coming up, our guest as we continue to see gains across asia with the msci agent strzok up .6 -- asian's stock up .61%. that is it for deibert -- "daybreak: asia." standby for china markets open.

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♪ david: this is my kitchen table and also my filing system. over much of the past three decades, i have been an investor. the highest calling of mankind, i've often thought, was private equity. [laughter] and then i started interviewing. i watched your interviews, so i know how to do some interviewing. [laughter] i learned from doing interviews how leaders make it to the top. >> i asked how much he wanted. he said 250. i said, fine. i did not negotiate with him. and i did no due diligence. david: i have something i would like to sell. [laughter]