haidi: welcome to daybreak asia. sophie: -- shery: our top stories this hour. janet yellen says higher rates could be good for the fed and america as she urges president biden to push on with his massive spending plan. g-7 nations agree on a landmark

corporate tax deal and i move that has big implications for companies. more wild swing for bitcoin, and words of warning from goldman. let's see how we are setting up for the markets across asia. sophie: we're going to be gauging reaction to the g7 tax plan, we are seeing asian stock futures climbing higher this morning. we are also keeping and i on what is going on with bonds. we are seeing aussie bond curve flattening, while the 10 year yield fall by about six basis points, in the wake of the u.s. jobs report. check out the offshore yuan, coming ahead of the inflation update from the mainland. that brings us opec's monthly report, opining we are seeing the demand recovery hitting

maximum velocity. as socgen strategists have more caution. taiwan's rating lower to neutral while cutting india to underweight. pulling up the chart on the terminal. the dollar stumbled, they provide a lift for asian equities as the u.s. jobs future appears to be beating inflation. we kick off a new trading week. haidi: janet yellen says president biden's spending plan could trigger inflation but would be a plus for society and the fed. yellen spoke to bloomberg where the group secured a landmark deal that could help them collect more taxes from big companies. our chief correspondent joins us now. let's start off with what yellen said about rates. she has a point, the world has been fighting low-inflation for

so long, she has also said this is transitory. could it be a plus? reporter: exactly right. she said to remember the context with the base. the word has been trying to get out of a low interest rate and low-inflation for well over a decade, since the last financial crisis, and what ms. yellen said. if rates to go up, they will have its positives. she -- you have to assume those who are in savings. we will get some guidance from the fed, the fed meets next week in terms of our policy to -- will be headed in interest rates will be headed. we had good job numbers, inflation has been strong for april, but at the same time, i do not think the commentary is necessarily pointing towards the fed targeting tapering or hiking interest rates just yet.

even with the comments. shery: those numbers out on thursday, we saw april gaining more than 4%. secretary galland does not think that will last. reporter: no, by all accounts she is in the transitory camp. she doubles down. she made the point that the total u.s. trend at the moment is around $450 billion. that is not going to great the kind of inflation that will stick around. she also made the point that the money the u.s. government wants to spend over the coming years is investment enough stimulus, and an important one. she is making the argument it is a more productive u.s. economy, get things moving. not necessarily about supporting demand which would drive up the short-term. she is putting out a strong case

for defense. she also says she knows the banking world very well, and knows they are good and are not going to screw it up. haidi: when it comes to this landmark tax agreement, how much work is there to be done? is it an inflection point? reporter: it is definitely important. it goes back to the story about governments not agreed much in recent years, now they have come together. ultimately this is all about paying for the pandemic bill. governors have borrowed over $20 trillion, and it has to raise money. it is only a first step. now we need to get more governments on board, there will need to be a lot more ratification of this. you have to look at the july g20 meeting. that you have -- there is a way to go, this will

certainly take years of implementation, but the bottom line, governments are raising funds, and have taken the first step with an agreement on a minimum global tax rate. shery: the chief asia responded. for more, we are joined from hong kong by the ceo -- great to have you with us. the minimum corporate taxes around the world. he is saying this will take years. is it a bit too early for markets to start factoring in or will they hedge now? guest: i will cautiously start hedging now. one, there is a uniform minimum tax rate, 15%, that can be implemented immediately by individual governments. this is called the second pillar. the first pillar determines

globally where, how, and by whom those particular companies are going to be taxing. if the company is in x place, w can tax it. a specific location and sovereignty issue. 15% could be implement that instantly. shery: we have seen members singling out tech giants. they are saying under the criteria, those tech giants would fall into the purview of these tax rates. is it time -- that this add to the negative sentiment around those valuations and those growth sectors? guest: it does, actually. there seems to be a determination that we should tax more. there are a lot of culprits here. ireland taxes 12.5% which is below the 15% minimum, and has

become a place where a lot of taxation takes place, because it is one of the lowest in the european union. as it has been indicated, it is relatively easy for individual companies to start nibbling, but it will be much easier was the first pillar is decided. haidi: is it broadly encouraging we are seeing something of a return to multilateralism, particularly as the pandemic has stoked fears of greater adulation? guest: absolutely thrilled. i think it is so nice to see the g7 and g20 come together. it is not a -- remember, these companies are not doing anything illegal. they are not evading taxes.

they are keyboarding taxes -- avoiding taxes. they will try to have their tax bases by offering lower and lower rates, and this is perhaps a fair example, amazon pay something like 70 million pounds in the u.k.. a very small sum of money given the hundreds of millions. it is perfectly legal. nothing illegal about it. haidi: what is driving the markets at the moment? is it the vaccination rate, the divergence we see in how the vaccination rollout is being handled across asia? is it the fact we are still waiting to see where the fed and major central banks go from here? it's really hard to see what the next major catalyst is, because it feels like it is priced in.

guest: i am not a doctor. the phd in front of my name is a doctor of economics. i look at the common consensus that you need about 75% of a fully vaccinated population, today look at the numbers, japan has 9% of its population vaccinated and only about 2% of the whole population vaccinated twice. for all intents and purposes, they are completely unprotected and are holding to -- planning on holding the look vix. if i look correctly, a 40% double vaccination. they are not vaccinated. the united states is a little bit better, with a 50%, 40% percentages. that is well below the 75%. it looks very certain we are

going to have a lot more waves once the torah season is over, and that is going to hit the so-called revival of the economy, the recovery. more and more gloomy for the global economy going forward. haidi: joining us from hong kong, always great to have you. the slow rollout in vaccines, we are hearing victoria report 11 new cases as the lockdown is still going ahead. still ahead, we get the outlook for australia's biggest apartment developer. he tells us how he has been groomed to take over his family's real estate empire. coming up next, concerns over a crackdown taking place in china, this is weighing on bitcoin. we discuss those later tears next -- latest fears next.

this is bloomberg. ♪

haslinda: the biden administration says trade ties with china have posed a significant imbalance, and the u.s. is committed to leveling it. the trade representative told reporters there on -- there are unhealthy parts of the relationship, she was discussing the future of trade deals with beijing. >> there is a relationship that has been marked by significant imbalance. in terms of performance, but also in terms of opportunities and openness of our markets to each other. in light of the significant imbalance, i would say there are

parts of this trade relationship that are unhealthy and have over time, been damaging in very important ways to the u.s. economy. haslinda: asia and ministers say their work has sped up distribution of vaccines. after a meeting, officials said they would consider removing unnecessary barriers to trade to expedite the flow of essential goods, but they stopped short of a broad commitment to remove. austin officials have completed a visit to myanmar where they met with military leaders to discuss the peaceful resolution to the unrest that has gripped the country since a february coup. the call for the release of all political prisoners and discussed providing humanitarian assistance. hundreds of people have been killed, at the military crackdown on pro-democracy groups.

mexico is holding elections. in peru, the choice -- in mexico, the president faces the biggest test of his presidency, midterms for his party will try to keep a supermajority. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am haslinda almond. this is bloomberg. shery: bitcoin is sliding unconcerned there may be a further crackdown in china. there has also been a report from goldman sachs indicating institutional adoption of digital currencies may be a long process. let's get more from bloomberg's cross asset chief editor. what is the significance of wei

ibo's actions? we have lost them at the moment. let's turn to the -- he sees big potential from ether , speaking exclusively to bloomberg. >> i think everybody who spends time in crypto knows there is bitcoin and everything else. if there is a protocol with utility, right now, i believe it was the first to market created a real platform. now you see a huge scale. i have a lot of confidence. a lot of it depends on the apps they get built on it.

ether is powering the network that allows it. will ethereum be as fast as it will be? will solana take over? that kind of competition is great for the market. my belief is that the u.s. payment system is antiquated. i am all in for the moment. reporter: you also said you saw ethereum as a bank teller. -- killer. >> the early purposes with the idea that it does not make a lot of sense, it might not even be fair, that in order to buy my coffee, i have to pay a fee when i slight my credit card. the idea that if i don't have a minimum balance in my bank, i have to pay them a fee for the privilege of holding my dollars. the point of finance is to

provide an alternative that does not cost money. the whole point of crypto is to create networks that don't rely on intermediaries. when i think killer, i think the traditional banking model, collecting money from you, probably not a sustainable model. we will defeat that. thanks will adapt, others will shrink and go away. at the end of the day it is my money, it is your money, we should not have to pay somebody. reporter: are you invested in crypto? >> of course i am. reporter: what are you buying ny? >> i will give you preface. i never believe in giving financial advice. i think bitcoin is the longform -- long-term store value. i also believe people need to be

in ethan. finance believes there is an ethereum complement, and everyone should have the defied app. that needs to be part of everybody's portfolio. that is what will one day replace binance. shery: let's get more from the cross that manager. what is the significance of having weibo suspend some crypto related accounts? >> it is a concern for people. it comes on top of china and officials talking about things like mining and concerns about energy. talking about concerns of trading and volatility. this is one more thing that shows china might be starting to

crackdown. it is a little bit piecemeal at this point, but it is still something with china being such a big consumer crypto, it is a problem for the industry. haidi: what were some of the other things that happened in the space over the weekend? reporter: it was a pretty big weekend. the president of el salvador said he will introduce a bill to make bitcoin legal tender in the country. this was at the bitcoin miami conference. on the negative side, goldman said that they did a survey of chief investment officer's of hedge funds, and found that people really are not into bitcoin. this is a small survey, but it's a knock against the narrative that institutions are looking to adopt it. people did not want bitcoin, and it was not anybody's favorite type of investment. there are a lot of traditional financial people that are still pretty hesitant about it. shery: that was one of those key

factors people were watching to see where bitcoin was going. what are strategies to watch right now in terms of price action? >> it's languishing in the mid 30,000 range after hitting a record high near $65,000. it is well down from there and that is still up 25%. it is made a decent move. people are watching, maybe $33,000 on the downside. the 200 day moving average is around $41,000. there are definitely some levels in there, but it is a huge range because crypto is a pretty volatile asset. haidi: the cross asset team editor with the latest on big going. you can get a roundup of the stories in today's edition of

daybreak. bloomberg subscribers go on the terminal, on the anywhere app. you can cuss the pies the settings -- customize the settings. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. a consortium of equity firms has reached an agreement to buy a company and one of the biggest leveraged buyout of all time. sources say blackstone, carlyle group and another will take a majority stake in the medical supply company in a deal valued at more than $30 billion. singapore gic will also invest. china wh group will buyback as much as $1.9 billion of stocks in a filing to the hong kong

exchange on sunday, wh that it is repurchasing 13% of its stock for $7.80 apiece, a premium of about 70%. shares have been tumbling on higher prices. china evergreen group says it will begin testing five models of a vehicle. the energy vehicle just three months after being testing. evergreen is joining a credit sector in china with plans to start mass production in the second half. one company is selling its baby formula business for $2.2 billion. the exclusive license of the new johnson family of brands in china. it will continue its global ownership, operating the brand for.

the rest of the world. coming up next, hong kong's ipo market has cooled and china's tech crackdown has a chill over investors. we discussed the struggle to get pipelines flowing, next. this is bloomberg. ♪

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haslinda: this is daybreak: asia. the g7 nations have secured a landmark deal or a global corporate tax rate of at least 15%, a step towards rewriting the global tax system which has been criticized for allowing big companies to avoid tax by restrictions. key details are get to be nailed down, and it could take years with more nations needed to sign on to make it viable.

janet yellen says president biden should push ahead with his $4 trillion spending plan, even if they trigger inflation higher interest rates. yellen said higher rates would be a positive for american society and the fed. she also says she will keep fighting for sending packages, which she sees as investments. angela merkel's opponent has secured a victory. according to projections from the public broadcaster. the far-right alternative slumped to a distant second with 22%. el salvador in president says his planning to make bitcoin legal tender. he said the cryptocurrency could

provide people access to credit. he is cementing -- planning to summit the bill next week. the hungarian government has delayed plans for a chinese university in budapest after thousands protested a project to build the campus with taxpayer money. the issue of the campus has become a contentious issue ahead of the country's tightest elections in over a decade. plans to build the campus will now go to a referendum in 2023. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: let's take a look at the set up for the start of trading. sophie is in hong kong. sophie: stocks set for gains along with bonds, the aussie 10

year up by about six basis points, flattening of the curve in australia. jcc is looking to open higher, but we may see some caution ahead of tuesday's option. treasury futures slightly yellow -- lower. this underpins the fed's stance it is still a ways to go, pulling up the chart, while it may overshadow the inflation picture, there are still bets for us from recovery in the u.s. that will likely see the fed start tapering. analysts expecting the announcement will come in september and will feel -- fuel 5%, up to 2% on the u.s. ten-year. haidi: let's take a look at hong kong ipo's, tracking at their slowest paces.

weaker markets, china's clampdown filling sentiment. our chief north asian correspondent stephen engle taking a closer look at all of this. what is going on? reporter: it's an about-face. the redoing stories in march about the blistering pace of hong kong ipo's. it has come to a grinding halt. i want to bring up the chart, it is misleading. the chart is -- on the right, you see the values of ipo's, $24 billion year-to-date. cap the level of the last year -- half the level of last year. we are just three weeks away from the end of the second quarter, pretty much tracking last year's good numbers. however, it is misleading. almost all of that has come from the first quarter. we have only had seven ipo's so far in the second quarter after

that blistering first quarter. the first quarter saw billy billy, it's up i do -- baidu. those two companies, those main listings, the worst average debut performances in 15 months. it has really fallen off a cliff. why? there are inflation concerns, possibly central bank actions, investors taking money out of the high valuations in tech. also, you have the crackdown on alibaba/ant and the tech companies in china under regulatory scrutiny. if a company has alibaba or tencent back in the prefix, they usually get big ipo's. that is not the case right now, given the regulatory crackdown. shery: what does this mean? is this a pause or a prolonged slump? reporter: what is the length of a spring? we don't know.

it is a short-term downturn. we need to look at the pipeline. how the investors line up for these stocks. china run dairy group, one of the first that is coming down the pike. also angel align technology, stock list that -- i leading orthodontics maker in china. it is 674 times oversubscribed already. that could be a good harbinger. cloud music, netease has filed for a hong kong ipo to raise up to one billion u.s. dollars. we need to look at the short-term to see what the long-term trends might pay now. shery: stephen engle joining us from hong kong. the chinese supermarket giant wumart has ambitious to become

that country's answer to walmart. a comparison shows wu-mart as a long way to go. the founder says it can be done if there is consolidation in china's grocery sector. he spoke exclusively with bloomberg's tom mackenzie. >> the supermarket business is so fragmented compared with the united states. i think the total market size is similar. the united states with walmart, walmart has 500 dollars in sales -- $500 million in sales. cosco, kroger, sales easily over $100 million. in china, it is hard to find a

company with $100 million rmd sales. i strongly believe this market needs to be consolidated. tom: you would like to replicate that market share in china. >> i hope. walmart has 10% of the u.s. market. we are a ways behind that. if you predict that china will have a retailer with solid rmd sales, $1 trillion, i would not be surprised. it is happening. tom: you are relisting in hong kong. tell me about the timing, why does it make sense? >> wu-mart delisted six years

ago. at that time, wu-mart had a big challenge, because the market changed. if you follow the old way to do business, you cannot really survive. today, walmart stores a very different -- wumart stores are different from six years ago. for example, now, over 80% of sales for both online and off-line go through the app. fully digitalized. tom: the ipo should happen this year? >> i hope so. tom: when would you expect

consumption to get back to pre-pandemic levels? >> maybe another half-year, when you're? -- one year? tom: in six to 12 months you might see the consumer back. >> the pandemic is under control. people feel relaxed. tom: an important part of your personal biography with the 70 years you spent in prison for a crime he did not commit. you are cleared of that and exonerated. how did that time in prison shaped the way you look at business? >> this is a tough question. everything can suddenly happen to you. however, if you have a strong part, -- heart, can survive the

hardship, you will become stronger. haidi: that wu-mart founder speaking to tom mackenzie. coming up, generation x focusing on prominent family businesses and plans for the future. we hear from the biggest apartment development in australia, the grandson of the founder. that is coming up next. this is bloomberg. ♪

haidi: bloomberg takes a look at how families and business leaders adapt for the future. this week we hear from the grandson of the billionaire developer, one of the country's richest men with more than half a century in the property business. also known as high-rise harry. they have built one out of every 10 apartments in sydney. at the same age, daniel and his brother are being groomed to take over their grandfather's empire. he sat down with an exclusive interview discuss the future of the family business and outlook for australia's property center. >> in terms of demand, we don't

have immigrants. students. it has been offset by low interest rates, which has encouraged local buyers, and we also are dealing with long approval times. supply is low. the market is holding out. in terms of other trends, i think we are seeing demand for three bedrooms, four bedrooms, we are adopting development to cater for that. i also think queensland is experiencing a renaissance, in terms of sales and in terms of tourism. we have bought another site in queensland because we have a lot of confidence there. in terms of the future, we will see what happens. we have been so incredibly successful over the last 60 years i think we are largely going to stick to what we do so

well, apartments, areas we know. we have started to expand our footprint in a conservative way, we are building a new service department in melbourne. it will be good, we think very successful. see what happens from there. reporter: more presently, maritime has been dealing with covid. how has that changed? >> in terms of covid, we did give for hotels to the government when our hotel occupancies were at rock bottom, which did partially help us get through those bad times. now we are seeing occupancies starting to improve, not back above where they were before covid, but improving. it is getting better. reporter: i interviewed your grandfather a few years ago. one of the things he said, every year he has a fixed number in

mind and he builds them all matter what. if that's a part of the company's vision? >> that is an interesting question. we always try to work -- the only thing that stops us from doing that are those slow approvals. usually about 2000 apartments a year. hopefully we are back up there next year. paul: how about the future of maritime? you see this company growing? >> i think harry has always encouraged the family to get involved. from my perspective, i very much want to continue this business, and hope it stays in the family. it has been so successful. paul: no ipo plans? >> not that i know of. paul: you are 30 years old, were

you always interested in joining the family business? >> when i was at university i was not sure what i wanted to do. i started coming into meriton part-time and started to enjoy it. i finished my degree, switched from business to economics, and rental time when i finished. haven't looked back. paul: can't help but notice succession has skipped a generation. what happened to your parents? >> it is me and my brother in the business full-time, working closely with harry. although my mom and aunt aren't in full-time, they are in every way to keep in touch what is happening with the business. paul: why are they not rising to the top? >> i think they were not interested in working full-time, but they deftly are interested in continuing the business into the future, because it is such

an incredible business. paul: what is it like working with harry? do you see him day-to-day? does he give you much autonomy? >> is obviously -- harry has been incredibly successful, 60 years, 80,000 apartments. it is amazing to work with him, he is in the office five days of work. -- five days a week. in terms of decision-making, he definitely likes to be involved in all major decisions, he is the captain. but, he also listens, to not only family but senior staff, and if we suggest a strategy and that is logical, he will go with that decision. if it is wrong, he will not be shy to say that either. paul: you ever feel awed by the legacy? >> i focus on the work at hand,

throwing, improving my skill set. paul: can you point to something you have learned from? >> i say there are a few major things. learning a lot of things all the time because our business is so diverse. definitely, to work hard. he is in the office every day. on the weekends he goes through management reports. also, cash is king. we have low debt. you have a lot of flexibility. speed as well. for example, we could be building a 60 story tower, then the market changes, we need different unit types, unit sizes. we won't hesitate to go change plans and get approvals and change made construction so we can meet the market as quickly as possible. shery: that was daniel speaking exclusively with paul allen. catch generation x every monday

on daybreak asia. this is bloomberg. ♪

haidi: kim jong-un has made his first public appearance in about a month as state media showed him at a meeting discussing ways

to improve'the countrys economy. joining us is the bureau chief, speculation that we haven't seen him in the public eye. what have we gleaned from this appearance? reporter: he has had numerous times since the pandemic of being absent from public appearance, a month at a time. this time it was a longer period. this raises all kinds of speculation as to what might have happened to them. every time this happens, there are concerns about his health. last time he was gone for six weeks he came back walking with a cane. there were concerns about that. he is overweight, he is a chain smoker. anytime there is a prolonged absence, there is a significant anxiety. there is also the possibility he

may be preparing a missile launch. it is such a reclusive country. shery: do we have any idea how covid could have affected north korea? >> nk news speculates that he may be trying to stay away because of the pandemic, basically putting himself in self orenstein. -- quarantine. on the other hand there was satellite imagery showing significant activity near his vacation, coastal mansion. the could have just been vacationing. again, nobody really knows. shery: peter with the latest on north korea. heidi, we are turning to the market opens in japan.

i am setting it up as the tokyo open, and this is why we are watching the stock, a chinese restaurant operator. it is more because i really want to tell the story. it is all to do with pandas. the stocks surging after a panda may be pregnant. this is fueling market speculation that the baby panda will be two more people visiting the area, so the stock jumping as much as almost 30%, before closing up about 9%. the zoo announcing that there -- they had mated twice. another nearby eatery trading at seven times the three-month average. any excuse to trade on some good, happy, sweet news. haidi: who doesn't love pandas? it's worth pointing out this stock is a panda proxy. it always moves on panda related

news, the biggest jump in four years. back in 2017, we saw shares soaring when the zoo announced the same pair of pandas had mated, they jumped again when she gave birth to a cup in june. it then can begin in 2013 after she appeared to be pregnant but then slumped when the zoo announced she was these blank false signs of pregnancy. something adjacent to this event the pregnancy, apparently some pandas in some parts of the world have learns to pretend to be pregnant because they get better treatment. shery: what! haidi: they milk it for what it is worth. i hope this is confirmed. this is to me, more exciting that another -- shery: faking pregnancy. i lived five years in tokyo and i did not get to go there. as we head to the market open,

sophie? sophie: bear keep an eye and reaction to the g7 tax plan. keeping an eye on asian companies that derive a large chunk of the revenue. flipping the bar, keeping an eye on nissan which is delaying the release of its flagship ev vehicle in light of the chip crunch which will impact about 500,000 units. keeping an eye on sk telecom, denying a report that amazon is seeking to buy 30%. on the deal front, watching report that ebay will receive final bids for its korean unit. shery: we have breaking news. buyout to by atlantic aviation, this according to people speaking to bloomberg, could value the company at about $4.5 billion. we will have more on this. don't go away, the market opens

our next. this is bloomberg. ♪

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♪ >> hello and welcome to "bloomberg daybreak: asia." haidi: looking at the major markets opening across asia our top stories, janet yellen says higher rates could be good for american society and the fed. she is urging president biden to push ahead with his $4 trillion spending plan. g-7 nations strike a deal on a

minimum corporate tax rate that could have implications for companies including amazon and facebook. china's crackdown on tachy spilling over into hong kong's markets. the city's listings are on track for the weaker stte showings in a decade. shery: outside across markets we see japan, south korea and australia coming online. sophie: in japan japanese stocks opening higher and the nikkei above 29,000. the yen holding below 110. dollars selling momentum easing. switching out the board and south korea, the vaccination drive is picking up pace. kospi opening higher by .7%. strategists have lowered the rating for south korea and taiwan well yeah was cut -- while india was cut to

underweight. seeing how trades are shipping up in sydney, the asi 200 looking to extend gains and looking at casino and banking stocks after concerns were raised by the financial crimes regulator. and we have treasuries opening lower with the 10 year yield above the 156 level. the u.s. recovery is maintaining momentum, be of eight seeing a jump on the 10 year, and the fed expected to announced plans in september. haidi: we will get more on that and let's get more on the news across the weekend, the g7 tracking this multilateral deal to revamp taxes seem to affect the likes of amazon in tech giants. let's bring in the chief global strategist at bearing and this chart takes a look at how

divergent global corporate tax rates are according to this bcb chart we have on your screen. how much of a game changer is this? knowing that we need more countries to sign up and more of the details to be ironed out as well. >> is the big game changer. as you point out there are hurdles ahead but it is not often you get major global companies tearing -- cheering a coordinated tax increase and that is because the only thing worse than a coordinated tax increase is an -- is the uncoordinated tax increases they have been seeing the last couple of years as different jurisdictions try to claim an extra share of their profits, famously the u.s. and europe disagreeing over tax collection on large u.s. tech firms. it is a big breakthrough that there appears to be a path ahead on a range of tax issues. haidi: i wanted take us to the question of the day which is, how would the 15% global corporate tax effect assets?

is that an automatic thing where you see stocks go down? is it destructive to shareholder value? >> well, taxes and general obviously take away from the bottom line. but i think this is something that has been well advertised. it is going to different companies and different ways. a lot of the bigger tech firms already pay an effective rate that is around 15%. so i am not sure they will be directly hit. it will be a company by company story. again, i think it is not going to be -- the news is not so much that taxes are going up but that the coordination of tax policy is going to make it easier for global companies to plan, and to make their tax strategies, and start cooling some of the populist pressures to pay more. shery: after the g7 talks we heard from secretary yellen talking about higher rates being a plus for the fed and american society. what do make of her comments? >> you would normally expect

markets to start selling sharply when the treasury secretary talks about higher rates. i think what she says is what everybody knows, that we have been concerned frankly through the pandemic, about lower rates, and deeply neri pressure -- deflationary pressures. right -- right now we see strong recovery in the u.s. and other jurisdictions around the world so it is not surprising inflation and rate start to pick up and that is a sign of recovery. frankly for a lot of interest rate sensitive stocks, or a lot of financial stocks, that is a big boon and it will be helpful to other assets, as long as the rise is slow, protectable, and that is what we have every reason to believe it will be in the months ahead. shery: exacerbating inflationary pressures are the current bottlenecks and supply chains. we had an interesting bloomberg opinion piece talking about how the biggest threat to the infrastructure program is not having to pass it through congress but that those companies that will be relied on

for projects are facing shortages of everything from --. how do you explict the supply chain disruption to sort itself out in policy and in the markets? >> well, i would first of all disagree. i think the biggest obstacle to joe biden's infrastructure plan remains congress. and we will see how he is able to negotiate that, and how he does of the program to try to get it through this particular configuration. in terms of the supply chain it is not surprising a year ago we shut down the global economy. now, as growth recovers at a good clip, it is not surprising we are seeing shortages of workers, supplies, the wrong things in the wrong places. we have all had some experience with that if you have done home renovation. those are the kinds of things that in time will sort themselves out. the other thing to keep in mind

is, as an investor, this is a time of noisy data, confusing data. you saw that on the jobs numbers last month and much better last week friday when we got to the jobs report. just as the data was messy going into the pandemic, it is going to be a little bit all over the place coming out of the pandemic. so it is better to keep an eye on the broader trajectory, continued strong growth and moderate inflation. shery: we will be watching the headline inflation numbers thursday as they come out. christopher smart, great having her insides, thank you, chief global strategist at barings. now paul allen with the first word headlines. paul: asia-pacific trade ministers will work to speed up distribution and flow of coronavirus vaccines and essential medical supplies, after a weekend meeting, apec officials said they would consider removing barriers to trade and services to expedite the flow of essential goods but stopped short of a broad commitment to remove tariffs.

-- angela merkel as german chancellor. -- 37% of the votes -- the far-right alternative to germany slumped to a distant second, in a communist region with 22%. peru and mexico holding elections, major tests of the establishment. in peru a choice between fujimori, the daughter of an autocrat accused of corruption and castille. in mexico the biggest test of the presidency, midterms were his party will try to keep a super majority in the lower house of congress. the hungarian government delayed plans for a chinese university and but a pest after thousands protest our project to build the campus with taxpayer money. the issue of fudan universities

budapest campus had become a contentious issue ahead of the biggest parliamentarian election in a decade and now the issue of the capital go to a referendum in 2023. in myanmar eating with military leaders to discuss a peaceful resolution to unrest that has gripped the country since the fabric coup. asean called for the release of political prisoners and discuss providing humanitarian assistance. hundreds of people have been killed since the coup, as a military crackdown on pro-democracy groups. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. haidi: let's take a look at how markets are trading the start of the week session. sophie: we are seeing asian emerging equities on the front foot this monday morning, with communication services and i.t.

leading the way with discretionary stocks. jp morgan says that expectations for the airhead remain high, due in part to earnings, and that dollar a boon for the space with a tilt to cyclicals and elevated commodity prices. pulling up the board now checking on oil crude prices holding steady around 2018 highs , $59 and brent above $72 this morning and seen the market structure in bullish territory with rent -- the spread of brent . shery: next, crown resorts says it's casino is being investigated for potential breach. plus may trade data do out of china and the next few hours. and economist tells us what she is expecting. this is bloomberg. ♪

haidi: finance says bitcoin is an important crypto anchor but sees potential for ether. also discussing elon musk impact on the crypto industry even when it puts pressure on prices. >> if you are musk this interested in crypto, and must be pretty important so i would start with that. short-term market panics are never a good reason to buy or sell. you need to understand you are selling an underlying network that has value, not elon. he cares about this enough to say something, whether pushing markets up or down, it is probably good in the long term. in terms of regulators it depends on what he is doing on the back end of this and i hope he is not trading when prices

move after each tweet for his own sake. it is a country with free speech and we are billing long-term values so i am not focused on yesterday's price movement but more on what happens in five years and that will go up. >> are you invested in crypto? >> of course i am. >> what are you buying and why? >> i will give you a lot of my friends preference which is i never believe in giving financial advice. i tell you what i believe. i think bitcoin is the long-term store of value here and anyone who invested in this needs to have a majority of holdings in that, the anchor tenant of crypto. i also believe people need to be heavily in ether because it is the current platform for building thanks. by nantz we -- at by nantz we believe -- at binance, we believe ethereum -- that could be maker or compound but it needs to be part of everyone's portfolio because it will one day replaced finance. >> ethereum i've heard you speak

about how it is going to become an interesting form of you know, blockchain, that encourages payments. do you think it is going to be a better form of crypto currency it comes to payments? and you think that will help it facilitate its market cap? at what point to think it crosses bitcoin? >> everybody who spends time a crypto nose, there is bitcoin and everything else. ethereum is a protocol with a lot of utility behind it for financial app developers. my believe ethereum was the first to market that created a real platform that people who are going to kill the banks could build apps on. now you see that at huge scale so i have a lot of confidence it will be the case. a lot depends on the apps they get belt. either tokens are not the things we we use for payments, ether tokens of power the network that allows apps to be built. will the theory m2 .0 be as fast as it can be?

well solo -- will ethereum 2.0 be as fast as a candy? -- as it can be? will something over take it? right now ethereum provides the best all turned of to the antiquated u.s. system. >> a bank killer, what does that mean? >> look, the early purposes of bitcoin and later the whole crypto movement was the idea, that it does not make sense and may not even be fair, in order to buy my coffee this morning i have to pay a small fee to a third party for the pro-village of using my money when i sweat my credit card -- to a third party for the privilege of using my money when i swiped my credit card or to pay a bank for holding my dollars they are using to fund their business. the point of be five on ethereum and binance smart chain is to provide and all current if that does not cost money, so people

do not rely on intermediaries that are tall collectors. when i say bank collector i mean that traditional banking model of collecting money from you for the privilege of giving you access to your own money, is probably not a sustainable model in this technology environment. we will defeat that and some banks will adapt and others will go away. at the end of the day it is my money, your money, we should not have to pay somebody to use it. haidi: that was thebinance u.s. ceo brian brooks. let's get more on the crypto universe with the bloomberg cross asset team. what is that significance? we are struggling with the regulatory overhang and the lack of institutional adoption as major themes? >> right, with those suspended some crypto related accounts this weekend and if people are interested in that because this comes on top of other cautions

out of china about energy is from bitcoin mining, and trading in crypto generally. so people are looking at, what is china going to do about crypto? are they going to restrict it further? what is going to happen and whether it is related or not, it is a reminder that the regulatory situation in china is fluid, when it comes to crypto and pretty uncertain. shery: a weekend for bitcoin with the current to reacting to the goldman-s cio survey. >> right, goldman had a survey of hedge funds and long only funds looking at what they like in terms of investments. they do not like bitcoin as one of their least favorite investments. it was nobody's favorite investment. it is a reminder that, while there is this narrative about institutions getting in, people wanting to look at bitcoin and maybe even ether, there is still a lot of hesitancy among these really big firms, established

firms, about getting into crypto. haidi: what are the strategist watching in terms of price action? >> bitcoin is around the mid $30,000 now, holding, after a weekend of going down. so people are looking at $40,000 on the upper end as a round number, if it can't at past there it may get momentum -- if it can get momentum. they're also looking at the downside hoping it holds $33,000, a significant tactical level and even down to $29,000. the range is pre-big and some people are saying it could pass those levels and go down further , possibly to $20,000. there's a big range which is reminder crypto is still an extremely volatile thing to be in. if you are invested in it you should be prepared for a wild ride. shery: bloomberg's cross asset

team editor. get a roundup of stories you need to know to get your joy going in today's addition of daybreak and bloomberg subscribers go to dayb and you can customize your new so you only get news on the industries and assets you care about. this is bloomberg. ♪

haidi: let's get a check of crown resource in the news that the australian regular has initiated a formal complaint, and enforcement probe into the crown business according to an announcement from the company earlier. we are looking at a six day of losses for crown resorts stop down 1% at the moment.

a watchdog identified potential serious noncompliance issues with no further details. we are also watching sky city, new zealand is not trading today but the auckland based group is saying the company -- the investigators regulator identified potential money laundering rate, now down point 2%. crown, this is not the newest or not just one regulatory issue we have seen for the casino. they are be investigated for a potential breach of anti-money laundering and counterterrorism financing rules. there is a similar program on it comes to its flagship melbourne casino as well. let's get details from our asian business reporter. this is interesting against them backdrop of takeover bids and hedge fund interest in the business. >> that's right.

it is surrounded by news and probes and sutures -- suitors. the financial crimes regulator in australia identified potential serious noncompliance in perth with regard to anti-money laundering and counterterrorism financing. it is not clear what any breach or potential breach might be in perth. but we do know that in october, similar investigation was launched into crown melbourne, the flagship casino. and that investigation related to concerns about customer due diligence, particularly customers that have been identified as high risk or politically exposed persons in the past. it is not clear if the perth investigation is along similar lines, but the backdrop is, crown is surrounded by

investigations. also there are independent investigations into crown melbourne and crown perth and those go to the casino suitability to operate as all. it is more regulatory pressure on a company that does not need any more. shery: at this point, any idea on how it could affect the merger bid? >> it is not. at this stage, this probe, although it does pile pressure onto crown, it looks like a wider industry push as well. because star entertainment has just announced it is being investigated for a potential serious noncompliance and star sydney, its main casino also relates to due diligence in high-risk or political customers in recent years dating back to

2015. it suggests if you take all the evidence, crown, star and sky city in adelaide, there is a broader crackdown by awestruck to address loopholes that may have been exposed into investigations and crown last year that led to crown being ordered to shut down its sydney operations were not even open them, they have not started yet. it is not clear where this leads -- leaves crown in terms of the offer by star and that is perhaps still on the table we do not know how crown regards that merger proposal. shery: our asian business reporter with the latest on crown and star. of quick check of the latest business flash headlines. a consortium of private equity firms has reached an agreement to buy medline in one of the biggest leveraged buyouts of all time.

the group will take a majority stake in a deal valued at dirty billion dollars. -- $30 billion. in china the world's biggest pork processor says it will buyback $1.9 billion of stock. wh said it is planning to repurchase 13% of its stock for $hk 7.80 eight. . and the stock. monday. >> agreeing>> in the netherlands and china with an exclusive license to family of brands and china. the firm will continue global ownerships in the rest of the

world operating brands. next, how china's tech crackdown is cooling the hong kong ipo market. this is bloomberg. ♪ (woman) i don't want to look like this anymore. (man) what is happening to my body? (woman) why can't i lose weight? (announcer) you may be suffering from insulin resistance. measure your waist. females measuring more than 35 inches and males measuring more than 40 inches may have insulin resistance. to learn how to reverse insulin resistance and lose weight effectively, go online to golo.com. once again, that's golo.com.

>> this is daybreak asia with the first word headlines. g-7 nations secured a landmark deal for a global corporate tax rate of 15% on foreign earnings, step toward rewriting the global tax system which has been criticized for allowing big companies to avoid tax by shifting jurisdictions. key details are yet to be nailed down and implementation could take years with more nations needed to sign on to make it viable. u.s. treasury secretary janet

yellen says president biden should push ahead with us for trillion dollars spending plan even if they trigger inflation and higher interest rates. she told bloomberg news higher rates would be positive for american society and the fed and says she will keep fighting for spending packages which she sees as investments rather than stimulus. the biden administration says, it's trade ties with china have quote a significant imbalance and the u.s. is committed to leveling it. that trade representative told reporters there are unhealthy parts of the relationship in response to a question about the future of the trade deal with beijing. >> the relationship in trade that has been marked by significant imbalance, that is in terms of performance, also in terms of opportunities and openness of our markets to each other. in light of this significant imbalance, i would say that

there are parts of this trade relationship that are unhealthy, and have, over time, been damaging and very important ways to the u.s. economy. >> and yet issued a final warning to twitter threatening unspecified consequences if it does not comply with new rules aimed at regular social media. the rule took effect in february and require platforms such as twitter to remove content in 36 hours of receiving a legal order. they require social networks to appoint representatives in 24 hours to address grievances. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. haidi: let's take a look at markets. sophie: this morning bonds are marginally higher in asia and asian stocks gaining ground

after a two-week rise for the regional index led by japan. the nikkei 225 back above 29,000 and kospi higher by .2%. societe generale turning cautious on create downgrading its rating to neutral, fundamentals -looking-. the asx 200 extending gains after the ascap to three we gain in u.s. futures under pressure this morning after the action we saw on wall street, that saw the dollar not to biggest drop in a month on the u.s. jobs report. stock movers early in the asia session this monday morning using the mrr function on the terminal. a korean company rising with energy stocks this morning, gains at a july height while stew makers are under pressure in tokyo, led lower by jfe holdings.

komatsu, under pressure after the stock was downgraded by golden to sell. -- by goldman to sell. nissan flipping this running off by 3% as it has to delay it iffy model -- it's av model on the on -- ev model. ebay is likely to receive final bids for its korean unit. shery: let's turn to hong kong. the city's ipos are tracking at the slowest since the aftermath of the global financial crisis in 2009. china's clampdown on tech firms chill sentiment. stephen engle is taking a closer look and joins us from hong kong. >> there is weaker market sentiment in hong kong. the hang seng index one of the worst-performing stockmarkets in the world since february peak

largely due to the regulatory clampdown on the three big companies of technology, alibaba, tencent and meituan, because of the increased regulatory screening we have seen since the collapse of that ant ipo last year. that is oppressing sentiment with an inflationary environment that is making tech a harder sell to investors. they are dumping those rich valuations. let's look at this chart. it is kind of misleading, bring the chart up again if you can. it shows you that the level of ipos so far this year are half the level of last year. last year was a good year so you would see this chart and think, ok, they are doing ok and going to meet last year's numbers. however the number czar skewed because -- numbers are skewed because they are frontloaded and the first quarter. the first quarter was strong with baidu, and the second quarter it has dropped off and we have had to seven ipos, only

seven companies go public in the second quarter and really have three weeks left in the second quarter. combined listings in the month of may, the worst average debut performances in 15 months. so this is weighing on sentiment, the overall regulatory crackdown, and inflation fears overall. haidi: i know you have a crystal ball, is in a prolonged slump or a blip? >> i have a bloomberg terminal, no crystal ball but that is the best alternative to a crystal ball. obviously you can see what is coming down the pipeline, right? that will help determine what kind of sentiment will go forward and whether we can build on that first quarter sentiment, not the second quarter. because here are the three companies we are going to be looking at. china'suran dairy group, linked to the inner mongolian.

this is old economy. then we have a health tech company, into align technology that does invisible orthodontics, the leading player in china for that, 674 times oversubscribed in the retail trench. tech, net ease cloud music filed in late may for a hong kong ipo to raise up to $100 billion and this might be the cloud, the harbinger on the horizon to see whether there is still appetite for tech. haidi: our chief north asia correspondent stephen engle. the chinese supermarket giant wumart has ambition to become the country's answer to walmart fed the company has a long way to go. the founders said it can be done if there is consolidation and china's grocery sector and spoke exclusively with our tom mackenzie. >> china market is huge.

but supermarket businesses are so fragmented compare with united states. i think the total market size similar. but in the united states, walmart has -- in sales and costco, kroger, target, has sales easily over a hundred billion dollars u.s. but in china it is very hard to find a company with a hundred billion dollars rmb in sales. so i strongly believe this market needs to be consolidated. >> he>> would like to replicate that market share in china? >> yes, i hope, i know it is very challenging. [laughter] walmart has i think over 10% of

the u.s. food market, and we are way behind that. if you predict that china we will have a retailer, with a thousand rmb sales, it is reasonable and it is happening. >> you are relisting now in hong kong and tell me about the timing, why does it make sense to relist now? >> walmart -- wumart released yes six years ago and at that time the big challenge, because the market changed everything is digitalized and if you still follow the old way to do business, you cannot really --.

today, wumart stores are very different from six years ago. for example, now, over 80% of sales both online and off-line go through the app. so it is digitalized. >> the ipo for wumart? tech should happen this year? >> i hope so. >> when would you expect consumption to get back to pre-pandemic levels? >> maybe another half-year, when you're. -- one year. >> and 6-12 months you might see the consumer back? >> conditional. the pandemic is really under control. people feel relaxed. yeah. >> an important part of your personal biography was the seven years you spent in prison for

crimea did not commit. you are cleared -- for a crime that you did not commit, you were cleared and exonerated of that charge. how did that time in prison shape the way you look at business? >> uh, well, this is a tough question. everything can suddenly happen to you. however, if you really have a strong heart, if you really survive, others kind of hardships, you will become stronger. shery: the wumart founder archegos speaking -- zhang speaking exclusively to boebert. -- two bloomberg. chinese trade numbers due monday, the economic outlook just ahead, according to one

china economist. this is bloomberg. ♪

shery: data due monday is expected to remain strong with the pace of increase in imports and exports picking up.

joining us is an economist from natwest. will we continue to see that seem of export outperformance? >> thank you for having me today, yes, indeed. we will still see a strong set of numbers for china's trade. i expect china's exports to grow around 33% year on year and imports may surge 15% year on year for this month. export performance remains a key theme in china's recovery and the drivers of that have broadened from initially china was filling in the gap of the supply chain to now we are going to see a stronger sector recovery. and the demand side is supportive of this key theme of china's recovery. shery: what the trade surplus continuing to widen what is that mean for the chinese yuan, this

gtv chart on the bloomberg showing where it is trading. >> i argued that you want outperformance this year has been mainly driven by the wide trade surplus, as well as capital inflows into china. going out a few quarters from here, we see the balance of risks become more balanced in the coming months. first we are saying china's growth outperformance --with the rest of the world will be narrowing as the rest of the. world catches up with a recovery . at the same time china and the u.s. yield inferential's might be narrowing as markets talk about u.s. tapering well china and taints its neutral monetary policy. haidi: the regulatory agenda seems to be picking up momentum now that growth has stabilized. how much does that way on future growth prospects? >> for china's case, long-term

growth is more balanced. we are not seeing spectacular growth rates, above 10%, above its potential rate. for china bc a normalization or conversions of potential growth rates of 5.5% in the long-term, so as growth meant to him has been relatively robust, we do see authorities picking up the pace of deleveraging to maintain a relatively stable and sustainable debt to gdp ratio. this year we forecast a slight decline in the debt to gdp ratio , which is partly supported by the favorable nominal gdp growth path. and also the authorities firm sense of stabilizing the debt growth overall. haidi: do you see the recovery in the consumer part of the

puzzle, as still being missing? because it has been surprisingly weak for a lot of analysts. >> yes, indeed. it has been one of the missing puzzles, one of the spectrum of the economy lagging the overall pace of growth momentum and i think a few sectors contribute to this. first, china did not embark on any stimulus to households like the developed countries. that part is missing in china which means household consumption is not going to surge the way it did in developed economies. second, wage growth in china still relatively lower compared to pre-pandemic levels, so the lack of fast wage growth might dampen consumption recovery. in the longer term the government and authorities is aware or is cautious of

household debt growth. so, by taking control of household debt rose means consumption is unlikely to pick up at any aggressive pace, it is going to be a gradual going up compared to the rest of the economy. haidi: china economist at natwest, great to have you with us. g7 nation secured a landmark deal to revamp the global tax code that could help countries collect more from big companies. the deal between finance ministers in london set aside a u.s. demand for a minimum corporate tax rate of 15%. >> the g7 has taken significant steps this weekend, to end the existing harmful dynamic, making commitments today that provide tremendous momentum toward achieving a robust global minimum tax at a rate of at least 15%.

haidi: let's go to our senior asia economics reporter. michelle, we still need more details and take up, right? this is still a really big deal. >> yes, it is remarkable given that this is such a sensitive issue across countries and with the corporate world. discussions on this topic have been going for years across hundred 40 countries led by oecd. companies have welcomed this g7 agreement, we heard from amazon and facebook encouraged by it as a give certainty and coronation to a complicated issue. it should bring down the political heat for some of the big tech companies. yes, we should emphasize it is the g7 countries now with details to be worked out. it is unclear how any other countries will sign on or when an imitation could take years. ahead is sorting out digital services taxes which have been applied unevenly. the conversation will expand into light when the g20 meets in italy.

that minimum rate will still be called into question and we have ireland, which has been known as a tax from the environment arguing the minimum shut address not a big nations and the u.s., this big domestic debate going on, republicans unhappy about the global minimum and fighting higher to domestic rates. that will complicate the issue and on the other hand you have companies -- countries like france want a higher minimum than 50%. a notable -- higher minimum that 15%. shery: secretary yellen also commenting on higher interest rates and the fed. how is she seeing fiscal and monetary policy after good jobs numbers friday? >> yes, she is in that tricky position given her position as a political cheerleader now of the $4 trillion infrastructure proposal by the white house and her prior role as federal reserve chair. around inflation a lot of people have been looking, waiting for

folks like janet yellen to say perhaps inflation will do harm to the economy and that the fed's easy stance is unprepared to tackle it, but instead she held her ground on this telling bloomberg sunday she is not worried about higher inflation, that the fed will handle it well. and she has confidence those policymakers will not screw it up, as she says. she knows them well and she knows the world well. she mention higher interest rates will probably be forced into next year will be a good thing for society and the economy. she was fed chair during much of the low flechette decade and she said none of it changed your view that infrastructure programs are important and they are needed for the long-term, not pandemics to villas. despite the good job street -- not pandemic stimulus. she is taking a long view. shery: our senior asia economics reporter. next, the many electric vehicle

from a little-known auto maker in china. this is bloomberg. ♪

shery: a little-known automaker in china has been dominating the world largest tv market and outselling tesla and other

players since last july, let's find out more about this $4500 many ev. -- mini ev. katrina, it is a cute car, tell us how it came to dominate the chinese market? >> it is cute. it is exceptionally popular, the number one selling ev in china, the world biggest market for electric cars. the company, saic is a joint venture that includes the u.s. giant general motors. they plan sales of one point 2 million vehicles next year, almost equal to the number of ev's turned out by all of china's carmakers in 2020 combined. the company has built its pedigree on selling my covance -- microvans, were courses that

are that nickname the breadbox car in mandarin, china's top passenger vehicle in 2017, millions now on the roads. the country has been able to leverage that, with good supply chain management. it's suppliers have set up shot around their -- shop around their manufacturing basing wenzhou. it can produce a very cheap ev. haidi: why's it so popular? >> i think a lot of young women, the condom or -- customer base for this company is female. for those drivers, they are buying it. also we spoke to retirees using this as their second car. the reason this ev is popular apart from its price is that it is customizable.

you have 20 colors, all sorts of things, that make it popular. idi: our bloomberg asia transport team laid. ahead at the start of trading in china and hong kong. sophie: we are watching chinese bond markets with a focus on huarong after it jumped friday leading a rally among bad that managers based on report the government is pushing huarong to sell non-core units and there could be an implicit guarantee in the works on it comes to liabilities. pulling up the board now, check on the offshore yuan, looking to test that 639 level but they are saying it could see waiting momentum along with yield and stock prices with the pboc balance sheet that will likely moderate. you are seeing other signs cyclical strength in china is depressed, the gap between consumer prices and producer

prices approaching a peak last seen at 2016. shery: more on the chinese markets, "bloomberg markets: china open." this is bloomberg. ♪ (announcer) back pain hurts,

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>> it is that :00 a.m. in beijing and shanghai. i am tom mackenzie. david: i am david ingles. getting down to the open on the chinese mainland and hong kong. let's get to top stories today. significant imbalance as we await main trade numbers for china, the u.s. is the bilateral relationship remains unhealthy and it is leveling the playing field.