>> from bloomberg's world headquarters in new york, i'm shery ahn. sophie: i'm sophie kamaruddin in hong kong. we are counting down to asia's major market opens. haidi: i am haidi stroud-watts in sydney. welcome to "daybreak asia." the senate passes a sweeping be-all -- sweeping deal. $52 billion for chipmakers.

bitcoin slumped as a recovery -- cryptocurrencies are beyond government reach. talks on joe biden's infrastructure plan hit a republican roadblock but the -- he said he would be pursuing other paths. shery: we are getting the final gdp numbers and it is a revision upwards to 1.9% of growth year on year. it was previously thought that it would be a growth rate of 1.8 percent. when it comes to the quarter on quarter numbers, revision upwards to 1.7% from 1.6% for the first quarter. we are seeing a little bit of game for the manufacturing side of things. growth, 3.8% quarter on quarter. 4.1% year on year. a big recovery when it comes to both food services side of things. we continue to see this export

led recovery for south korea, not to mention perhaps a bit more stronger domestic demand given the vaccination uptake. unemployment rate coming in higher than expected at three point 8%. the estimate by analysts were at 3.6% and it would be a higher rate than the previous month. this would be for the month of may. 619,000 jobs were added in may from a year earlier but perhaps because of the recovery, more people back into the labor force, lifting the participation rate in the unemployment rate at 3.8% so we will continue to watch the south korean numbers as we head for the market open in about one hour. haidi. haidi: one of the reactions we are watching as we get into major markets opening across the region in this midweek session. let's get to sophie kamaruddin for a look at what to expect. sophie: asian stocks headed for a mixed open and muted session at that. this is range bound across most

asset classes. aussie bonds tracking moves we saw overnight and treasuries. the 10 year yield falling to a one month low. it looks like the fed's message around transitory inflation may be sticking at least for now. we are seeing wti hold above that 70 level ever so slightly after closing above that for the first time in two years. cutting its 2022 forecast while raising it. the speedbump when it comes to pre-pandemic levels for demand as we are seeing those restrictions for the virus pickup across some parts of the region. ahead of inflation data from china for may, we are seeing the offshore yuan tests that level as we are seeing currency volatility take a hit. a jp morgan gauge following a 2020 low, shery. shery: the u.s. senate has passed a sweeping bill to

compete with china's prowess. let's bring in dan flatley. we are talking about a package of over $200 billion. what exactly are the measures that will be taken with this new capital? dan: there's $250 billion just about in this package. some of that is only authorized spending so it is sort of like the money still needs to be appropriated in order to beef spend but there's $52 billion, if it passes the house and get signed into law by president biden that would be appropriated immediately to boost domestic semiconductor manufacturing. we all know that there has been this shortage over the last several months in chips and semiconductors and getting those to the end users and manufacturers, putting them into cars and used products and all

sorts of things so this is aimed at kind of a midterm, middle term fix to that problem and then the overall bill, as you said, is aimed at trying to increase u.s. competitiveness with china to sort of jumpstart innovation in the u.s. haidi: does the fact that this bill has gone through relatively quickly and easily and with a lot of support suggest that being tough on china remains one of the few bipartisan issues that we can find agreement on? dan: absolutely. it's no confidence that the same day that this fell through the senate, bipartisan talks on infrastructure sort of broke down to a certain extent so this is one of the few areas right now where both parties in congress seem to be coming together. that's not to say that everybody

agrees on a reading that should be done or how the issue should be approached and there are plenty of republicans who said this bill spends too much money and increases the deficit. it sort of tries to beat china at their own game by playing by their rules. in other words, you know, it adopts an industrial policy where the government is injecting cash into the economy in a way that is antithetical to traditional republican orthodoxy so there is certainly a lot of disagreements. but it is the one area of bipartisan compromise that seems to have emerged over the last two or three years. shery: then -- haidi: then slightly. tom mackenzie is watching all of this from his perspective. tom, give me your guesses as to what beijing's reaction is

likely to be. tom: of course, we are waiting for any official reaction from beijing. you would expect the hawks in the capital will see this as another example of the u.s. trying to undermine china and china's attempts to innovate and grow its economy. the pragmatists here may see this as a reminder of just to what extent china's policies, many would say aggressive policies over the last few years, have led to what dan has outlined in terms of its strong bipartisan push to address the concerns around china so there will be differing views but the official line you would expect would be something along the lines of underscoring what they see here in beijing as an attempt by the u.s. to kind of clip china's wings. china itself has its made in china 2025 year plan and they watered that down or pushed back to one side. they have their five-year plan. what is clear is china has made

a priority of developing the technologies of the future as they see them, whether that is 5g, ai, electric vehicles, or robotics. that remains a focus of officials here and they have been ramping up r&d spending to get to that point. shery: we might see more sources of tension with the u.s. and e.u. renewing their push into investigating the source of the coronavirus pandemic. tom: this is an example of greater coordination between washington and brussels, the coordination you did not see under the trump administration so yes, this will be of significant concern to china. this is a sensitive topic. get reaction to beijing from what we have heard out of australia on this subject in terms of a covid-19 investigation. now, we have the e.u. aligning with the u.s., not ruling out the possibility that this virus

may have emanated from matlab in wuhan. -- that lab in wuhan. we have the leadership of the who. to some degree, this will be a concern for china, who continues to insist they have done everything in their power to investigate the origins and to work with the world health organization on this. it is a reminder that the biden administration has proven successful at rebuilding these alliances. the e.u. allied with the u.s. in imposing sanctions on china. this is another reminder that that kind of coordination -- when it comes to the technology side, china in its focus is on self-reliance and building out the self-reliance and the actions by the u.s. in putting off technology to companies like huawei has accelerated focused on spending on those areas. haidi: speaking of global implications, we are awaiting this ppi from beijing.

what are you watching out for? tom: 8.5%, as you say, the highest print in a long time. cpi will be more modest. 1.6%. what we are focused on is the run-up in commodity prices. officials have tried to use the rhetoric to kind of ease these price rises with some modest success in the last few weeks. goldman sachs, citibank, citigroup, saying that longer-term, that will not work. we will see to what extent the consumer price rise plays out in the its factory date prices and then it is a question of downstream versus upstream. upstream, be price rises have been felt strongly indeed. he saw in april a tick up. they have had to absorb the costs simply because the consumer here is not strong enough. there is not strong enough demand. they have not been able to pass

those costs on. core cpi, if you strip out energy prices, that is going to be of interest as well to get a closer look and a closer gauge of the health of china's consumer. shery: tom mackenzie in beijing. let's get to su keenan with the first word headlines. su: we start with e.u. leaders and president biden, they will commit to ending tariff disputes when they meet in brussels next week. draft documents reveal that both sides pledged to remove tariffs related to a steel and aluminum complex by the end of the year. also included is the plan to end a 20 year aircraft dispute that worsened under president trump. it led to levies of more than $18 billion for both sides. chinese regulators are said to have instructed major creditors of china evergrande to invest a fresh round of stress tests on exposure to the world's most embedded developer. sources say authorities recently

told lenders to assess their capital and liquidity exposure. evergrande bonds and shares have slumped recently to the drumbeat of negative news. the u.s. has begun using travel advisories for thousands of nations in france, canada, and mexico. -- reconsider travel. the advisories are not binding but can help guide airlines on their own restrictions. other countries often reciprocate based on the departments advisories. the u.k. has deployed military personnel to hotspots in northern england. the highly transmissible delta variant of coronavirus first identified in india. matt hancock announced a strengthened package that includes more testing and vaccine take up. u.k. officials must soon decide whether to lift remaining knockdown restrictions on june 21. we should also point out u.s.

health officials are issuing warnings about the more harmful covid-19 variant. the chief medical advisor, anthony fauci, says the variant is surging in the u.k., as mentioned. it has taken over the also variant and now accounts for more than 6% of cases being sequenced in the u.s. 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 su keenan. this is bloomberg. shery: still ahead, the covid delta variant and efforts to keep it from spreading in the u.s. peter says it could be time for a pause on bitcoin. he joins us with more on that and his markets outlook. this is bloomberg. ♪

>> bitcoin now trading as the january low and headed for the 30,000 level, where we saw that brutal selloff. if we continue to see that rate down, we could see another selling. it is time to pause by market cap. let's bring in the head of microstrategy at academy securities. what is your rationale? >> we started this year positive on crypto with all the adoption we are seeing. the big change for us has been awareness that politicians are taking at what this point in crypto means. there is tax consequences. politicians are worried about the tax breaks. even more important from a geopolitical standpoint, things like sanctions are not effective when you can get around sanctions using crypto and the

state of hacks where crypto is the currency of choice for ransomware. you will see a global government crackdown and regulation on it and that will drag the price down. shery: what is really interesting is every time we see a selloff or gains in bitcoin, we see the opposite happening for some of those meme stocks. this gtv chart on the bloomberg sewing aim see tend to coincide with bitcoins weakness. does this tell you something about where the strength and weakness for these two assets are coming from when it comes to perhaps retail investors being the driving force? peter: it is not just retail investors but the retail investors are focused on options trading fairly illiquid assets. they try and create some momentum so they are shifting their money away from bitcoin and yes, there's the people who hold bitcoin but at the margin, it is creating that drive, the next flow. people are concerned that we

could see 20,000 or even 15,000 bitcoin so they are taking their energy and capital elsewhere. that could be another problem. when i look at the conversations i have had with corporations, two months ago, -- you had certain companies talking about crypto nonstop. it was going up. i think people are looking at this volatility, looking at the concern from a geopolitical standpoint, ransomware standpoint, saying we might pause on that. the latest wave of adoptions, bitcoin in particular is going to sell off further. haidi: that momentum when it comes to institutional adoption has certainly taken a pause. i want to get your views on inflation. i'm wondering if you think it is transitory. take a look at this chart that shows we are back to the situation where bad news is good news for equities for investors who are used to this flood of easy money. that negative correlation

between economic surprises and stock performance is starting to ease off a little bit. is that a sign that investors are coming around to this idea of talking about normalization? peter: a lot of investors really do think inflation is going to be transitory. i think the opposite side. inflation will be very persistent and it will last for a while. it is a push towards sustainability and the friction we are seeing with china. look at this broadcast. policies with the u.s. will bring more production onshore shore. a lot of high-tech production we want onshore or at least done with closer allies. we will see the bride and focus on pharmaceuticals. if anything, health care. we need to make sure we have those resources either domestic or with our close allies or close neighbors so we will see shifts like that. we see people push towards sustainability. the sustainable processes,

deeper in supply chains. inflation pressure, wage pressure, cost pressure, i think this will go on for a number of years. i think that will be the wrong view. shery: that's we are talking, we heard in the last few minutes, the u.s. senate passing this massive comprehensive bill aimed at elevating u.s. competitiveness against china. you say that especially across areas like commodities and looking at ships in particular as well as semiconductors, that there are opportunities for the u.s. despite chinese dominance. peter: there's going to be a lot of friction with china. when i am incising clients, the biden administration does not like tariffs. that's like there's talks about getting rid of tariffs in europe, we will see them pullback. it will be a huge opportunity for ag and other businesses. what we will be focused on is high-tech 5g. you are also going to see on that health care and

pharmaceutical side. that is the opportunity to figure out where those can be made in the u.s., mexico, canada, europe. how do you take advantage of that? you will see great global growth, job growth continue. we had a record number of jobs available today. that continues. we will see this real big growth and a lot of it is going to be as trade relationships change and catching that change is going to be important so i think we will see tariffs pullback, run-of-the-mill type things with china. you are going to see the ongoing -- of that fight over that health care and medical. haidi: always great to have you with us, peter tchir at academy securities. you can get a roundup of the stories you need to go in today's edition of "daybreak." bloomberg subscribers can go to dayb on their terminals and you can tweak your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪

haidi: goldman sachs will have 10 days to pay the remaining $1.26 billion as part of its penalty for its role in the 1mdb fraud. the payment will be triggered after a u.s. district court sentences its malaysia unit on wednesday. we are joined by adam haigh. what is this latest development in what is a long-running saga? adam: amazing that we are now at another chapter in this long-running thing that has been going on back to 2009. this fund was set up in 2009 and this is all related to the former prime minister of malaysia and funds related to goldman sachs having already basically agreed that they conspired to the five years --

antibribery rules in the u.s. and what we are going to see wednesday is that the next chapter that the u.s. district court judge will be laying down, the details of this payment, that is what we are expecting. it is 1.2 6 billion, but as that pertains to the total 2.3 billion end of course we already know about -- shery: this producer being named by 1mdb in the suit, what is the significance of that? adam: so this is reactive and he was one of the producers of the film which for a long time has been linked to this scandal that also dates back to quite some years now. this specifically has come up in recent court documents.

redgranite pictures and read -- redgranite capital, which produce the comedy dumb and dumber 2, allegedly for financing will be productions. that's what they found out about the allegations of the misuse of public actions which relates to this thing that has been developing for this ongoing saga. shery: adam haigh. let's turn to a quick check of the latest business flash headlines and tell you about a different lawsuit. a steel company is suing three of the largest u.s. steelmakers for allegedly conspiring to stifle competition by refusing to sell raw metals. the company says costs increased after u.s. steel and cleveland -- steel slab. jsw steel's it has not been able to get enough supply him outside the u.s. after the trump administration slapped tariffs

on imports in 2018. softbank is said to be in talks for a loan of about $7.5 billion, tied to its planned sale of its chip division. sources say miss you hope bank is coordinating -- mizuho bank is coordinating the deal. we are told that collateral would be receivable from the cash portion of the arms sale which is awaiting regulatory approval. the u.s. air force says boeing has been charging japan excessive prices for military contracts. a report seen by bloomberg says japan was in one case charged a 1500% markup for spare parts for its refueling tanker plane, which is contracted by the u.s. air force but paid for by japan's government. boeing denies overcharging japan and says it negotiated the contracts in good faith. up next, with the covid delta

variant dominant in the u.k. and anthony fauci warning about its spread in the u.s., we talked to a representative from the yale institute for global health. this is bloomberg. we know how much you count on us... ...and that's why we're here 24/7... ...and on the road maintaining a fast and reliable network. we're always working to ensure the internet meets your needs... ...by making access easier for all... ...with comcast lift zones and our internet essentials program. we're invested in making our apps easy... ...to give you personalized assistance around the clock. and we're committed to keeping our team and customers safe by working from home... ...and using precautions in store. see what we're up to at xfinity.com/commitment

shery: a tale of two recoveries. the world bank says the emerging market and developing nations will continue to struggle with the pandemic and its aftermath. global gdp will expand 5.6 percent this year, up from 4.1 percent forecast back in january, fueled largely by expansion in the u.s. and china. most nations are expected to return to their pre-pandemic income levels in 2022, but a lack of access to vaccines will hold back growth in low income countries.

the world bank expects them to grow at the second lowest pace in the past two decades. only 2.9%. the world bank says policymakers should seize the moment to implement overhauls that increase resilience and create the foundations for a green, resilient, and inclusive recovery. the world bank president spoke to bloomberg about what is fueling the uneven recovery. >> the legacy is that it was a really deep recession. there was a lot of stimulus, a lot of monetary stimulus applied by the advanced economies and also the vaccines. and that turned out to be a key variable in the recovery rates. those countries that had this giant fiscal and monetary stimulus and vaccine recovered more quickly but that still leaves the hard work ahead of getting good investment quality into the future. the negative side of it is that the developing

countries had an even deeper recession and further recovery. they are left behind in terms of per capita gdp. >> when investors come on any of the shows, they tell -- they talk about investing in the developing world, em bonds and stocks, and how that is an opportunity. are you seeing enough money flood into the developing world to forestall some sort of financial crisis that many people were worried about in the beginning of the pandemic? david: there have been some elements. one is that remittances came back rather quickly and that support, the people from the developing country working outside their borders, sending money back home, and that is good for their small businesses. their families, their survival. from the standpoint of bond investors, there is a strong reach per yield but it tends to be concentrated in the less

risky areas so it is very hard to get that capital to go into fragile situations and into the poorest countries. net, it is a concern because they are taking sizable profit flows and high interest rates out of the developing world so i think the debt overhang is, in a way, a bigger challenge or as big a challenge as this new flow. in the world bank itself, we put a positive net flow into the poorest countries, thanks to donors and our own leveraging capabilities. we borrow 100 billion dollars a year in global capital markets and so, that can be devoted but it is simply not enough for these billions of people in the developing world. >> congratulations to you on this report. the polarity that you see in our world economies is something that needs leadership. what is the leadership you need

from president biden and the united states? david: a key aspect of the recovery is the distribution of vaccines. actual shots in arms for hundreds of millions of people. billions of people in the developing world so a key step is for the u.s. to decide and release the excess vaccines that it is able to produce. we need to recognize, it is just a wonder for the world that they were invented and that the manufacturing, which is very difficult to do, is being done in quantities. so week by week, the u.s. production is going up by leaps and bounds. unleashing that or -- releasing that to the world is really important. it needs to go to countries that have distribution programs, actual ability to deploy the vaccine quickly because

otherwise, it's it in warehouses and that is not where we want it. >> that was the world bank president speaking with tom keene. let's turn to the latest on vaccinations. anthony fauci, head of the u.s. infectious disease and advisor to president biden is urging vaccinations at the country eases travel warnings. our next guest says protection seems to be holding up but the big worry is these new variants. joining us as the director at yell institute for global health. we know that the variants are inevitable. we have seen good protection from the vaccine so far. how much time do we have before a booster or new vaccines offer greater protection? >> it is hard to predict in terms of the number of months but there is a concern that if we let this outbreak run rampant around the world, the

likelihood, the probability of a variant or two emerging that will seriously impact the efficacy and feel the effectiveness of these vaccines goes up. it is good for all of us to tamp down this outbreak everywhere. haidi: when do you expect that a booster will need to be rolled out? we have spoken at the start of the campaign that estimates are between five months to seven months before antibodies start dropping. is that the assessment based on the science that we know? saad: there are two considerations. first is the host level. the data continue to indicate protection in terms of host level factors, meaning people seem to have robust immune responses. even several months or even after infection up to a year or out postvaccination so that is a

good sign that the host level, that humans are mounting good response to the infection and a vaccine that lasts long. the concern is not the host, not the humans, not our immune responses to vaccines. the concern is the emergence of variance. -- variants. the mainstream thinking is to have these booster doses as a policy option. they are being evaluated. and so, the decision time point will, in fall. my guess is that would be the time when we will have to decide , based on the effectiveness and efficacy of these variants, and even newer variants, etc. from my perspective, is not a done deal. it's good to have boosters as a policy option but i don't think it is a done deal that they will

be deployed. shery: it seems that this pandemic, given the rise of so many different variants, is now transitioning from a pandemic to an endemic virus situation. in this case, aren't boosters sort of inevitable? what would the transition look like? saad: depending on how extensive the spread is, this kind of situation, you know, even if we need boosters, a big policy decision will be, whether it's needed for everyone. there is genuine uncertainty. if we control this outbreak everywhere by vaccinating a whole bunch of people, the outbreak becomes more predictable. even if it becomes and i met, it depends on which groups it is

impacting. high-risk group versus low risk group, becoming another infection that does not cause a lot of mortality, etc. because we have protected high-risk people -- shery: where are we at right now? distribution is so challenging in these developing and emerging economies. where are we at? where are we headed? saad: we are in a position where we are heavily vulnerable. we are very vulnerable because certain countries have high them in ideation rates and therefore, there is some respite from this pandemic in those countries but in other countries like india, because of manufacturing problems, because of scalable manufacturing and distribution problems, we have this outbreak that is spreading like wildfire, not just in india, but cases are really high.

in africa, the trajectory looks concerning in the past few days. because of that, we are in a very vulnerable position. boosters are not the end of the world. boosters will come with challenges so even now, even in the middle of a pandemic, in countries where there is division of supply, vaccine acceptance is not universal. we are asking people to take this vaccine again and again. i think the approach, the same strategy is to go all out right now in terms of vaccination to get it under control as much as possible. even if it becomes an endemic, it is manageable. haidi: is herd immunity possible globally? is this more like the flu that we will have to deal with year after year? is it more like the measles? what does it mean for countries that have opted for elimination?

saad: there may be a few countries that may achieve that. a global eradication is not on the horizon right now. we may be in a situation to reevaluate this in a year or so based on vaccine supply and the political will to eradicate the disease so there may be a few countries that bring it under control aggressively so much so that it is locally eliminated. shery: it was great having your insights. director at yale institute for global health. bloomberg has learned that amazon is fielding bids to replace j.p. morgan chase when it comes to being the issuer on its popular credit card according to sources speaking to us. american express is among those bidding on the portfolio. representatives from these vendors and amazon are not commenting at them a bit -- at the moment.

thanks in recent years have loaded up their cards with rich perks which makes it hard for lenders to turn a profit, and we have seen amazon's portfolio having more than $15 billion in loans and amazon is fielding bids to replace j.p. morgan chase as the issuer of their credit card according to people speaking to bloomberg. coming up next, no morale is expected to make broad cuts -- nomura is expected to make broad cuts to its brokerage. this is bloomberg. ♪

>> this is "daybreak asia." i am su keenan. we start with the u.s. senate, which approved a sweeping law aimed at helping the u.s. compete with china. the bill passed 68 votes to 32 votes. a polarized senate. almost a quarter trillion dollar investment to manufacturing and technology including research and development in universities. the bill needs approval in the house. president joe biden's top asia advisor says china has only itself to blame for a global

backlash against its policies. kurt campbell says beijing understands that militarizing areas in the south china sea and using more assertive approach to global the missy has helped fuel global tensions. xi jinping is increasingly the sole leader of china rather than part of a team has passed chinese presidents have been. president biden ended infrastructure development talks with shelley more without a deal. in the white house says a brief phone call between the two failed to reach agreement on the scope of spending or how to pay for it. biden will seek to develop a bill with a bipartisan group of 20 lawmakers. mitt romney says the smaller faction has agreed on key elements. an hour long outage is the latest reminder of how close many websites are two network disruptions. sites affected included

bloomberg news, the new york times, amazon, reddit, and the u.k. government. they say the problem with the so-called edge computing network was identified and rectified in about one hour. 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 su keenan. this is bloomberg. haidi: let's get you across to sophie in hong kong for a look at the markets today. sophie: taking a look at aussie bond markets, you have the 10 year notes gaining ground for a third session, tracking the overnight moves we saw in treasuries while the aussie dollar is lower ahead of china's inflation report and currency markets, we are seeing the vol falling, which may be a sign that inflation anxiety is cooling, plus traders may be sidelined. the ecb decision as well. has our colleague points out, the drop we are seeing to currencies like the aussie

dollar has been tracking commodities prices which have seen price gain since may 12. we saw wti struggling to break. holding above that level ever's -- ever so slightly. ahead of the tokyo open, futures moving to the downside but flipping the board, we could see moves in asian airline after the u.s. state department eased travel warnings for dublin -- dozens of countries including japan, south korea, and singapore. shery: nomura planning to revamp its business. it's expected that those cuts will spare very little in the u.s. and europe. joining us to discuss is -- nomura was all relatively small. what are we talking about here? >> that is right. the key context to remember is the japanese bank had big

ambitions for the u.s. it wanted to grow its business. the financing business, cross trading operations is seen as lucrative and that's one of the areas it wanted to grow, but the big blowout and the hit that the japanese bank faced means that it's plans have been derailed once again. >> i'm wondering, given so much of their ambitions had to do with tapping that big hole in the u.s., is this potentially just a sidestep? could we see a return to these ambitions? >> that is a fair question because we have seen their ambitions waxed and wane over the years. sometimes, it seems they are making a real big push and then they pull back and make the push again so maybe it is a same part

of the cycle but it is never reassuring for your clients when you don't see a consistent message and when you have big trading blocs like this one, that does not help for any confidence out there either. >> what is next in terms of growth? >> at this point, the good thing is the prime brokerage business in the u.s. and europe were not playing a massive role, not a big profit. they had hopes and ambitions but none of that had yet been realized so even as they dramatically taper away from this, they will still hope that there other focus areas across their other business lines can find ways to grow outside of their home market. there is a review going on with everything that happened with relation right now and you'll see them make some tweaks and changes. they can stick to the big hopes

they have for their overall business. haidi: always great to have you with us, bloomberg goldman sachs reporter with the latest on the fallout. be sure to tune into bloomberg radio to hear more from the days big newsmakers and get in-depth analysis from the daybreak team, broadcasting from our studio in hong kong. you can listen in via the app or bloombergradio.com. lots more ahead. this is bloomberg. ♪

shery: we are counting down to the start of trading tokyo and seoul. some stories we are watching today, in korea, we saw the central bank releasing revised gdp numbers and we saw those numbers coming in a little bit better than the initial estimate although the may unemployment data came out a little bit worse and expected. you're watching the battery unit . lg energysolutions after it applied to the korean exchange for a preliminary ipo review. in japan, we are watching biogen's partner which has the second alzheimer's treatment compound in development. it jumped by a 19% daily limit yesterday after being on traded due to a glut. we are watching it closely because we saw biogen under pressure in the new york session as well. bloomberg sources say softbank's

group is in talks for a loan of $7.5 billion, tied to its planned sale to nvidia. we are also expecting the latest may numbers on japan's machine orders. haidi. haidi: we will continue watching at the opening tokyo after it jumped by the daily limit in the last session. the company and the u.s. partner have received approval for their alzheimer's disease therapy. we understand it has another drug in the works. our japan health care reporter joins us now so tell us about the other compound is developing? >> repair is working on several other medicines together and includes this other drug that is also in late stage trials. this compound works in similar ways in that it targets the de la and how proteins are the source of plaque in the brains of alzheimer's patients.

it really raised expectations. we will have to wait a while on this compound. we are expecting to see some more data around the middle of next year. shery: investors seem pretty optimistic about this. the markets had a huge reaction. >>, yes, they are viewing this positively. one analyst told us it created a halo effect around this whole partnership. as you mentioned, in japan, you have stock which is on traded and that looks probably set to continue today as well. >> is the controversy or the split views on the efficacy of this drug is to continue? what happens when we get more clinical trial data coming through? >> we will not really know until we see what happens. i think some of the positivity

around this is the fact that because the fda approved it, it indicates the shift in thinking of the fda in that they are willing to let this go through. shery: bloomberg japan health care reporter. let's get a quick check of the latest business flash headlines. this biotech firm has no products on the market after 20 years. while it is benefiting from the meme stock frenzy, it is up 911% year to date, making it the third biggest gain are on the russell 2000 behind gamestop and amc. it also makes an alzheimer's drug but it is still years away from regulatory approval. leslie wexner sold 327 million dollars worth of shares, bringing his total stock sales in the beauty and apparel group he founded to $500 million this year. he is one of a growing number of

billionaire insiders that includes the walton family and jeff bezos, who been selling their stock this year. it includes bath and body works, victoria's secret, as well as pain. sources tell us singapore's property grew is in advanced talks to merge with -- and a deal could be announced as soon month. the bloomberg reporter said the company, backed by richard lee and peter thiel, was implement area talks with kkr. a transaction could value the combined firm at as much as $2 billion. haidi: let's take a look at the markets as we head into the start of trading. we are seeing new zealand with modest upside. mixed to muted picture across the rest of the region. sydney futures tipping up. we heard from the assistant governor this hour, saying he sees good prospects for economic

growth and an eventual increase and path through to wages and inflation. call futures off by .1%. those market opens in sydney, seoul, and tokyo, our next. -- are next. this is bloomberg. ♪

>> welcome to "daybreak asia." >> looking at the major markets opening across asia, our top stories this hour. asian stocks set for a mixed open ahead of inflation data from the u.s. and china. the senate passes a sweeping bill to help the u.s. compete

with china. it could unleash a quarter trillion dollars in funding including $52 billion for chipmakers. plus bitcoin slumps as the recovery of the colonial pipeline ransom shatters the belief cryptocurrencies are beyond government reach. >> japan, saudi arabia coming online. >> we are seeing stocks open to the downside for the nikkei and the topix. we have the outlook for a second alzheimer's drug from the japanese drug maker. the yen, little changed here. jgb's, tracking the moves we saw in treasuries overnight, gaining ground. the yield curve.

a faster vaccine rollout will help the company -- the country reopening. the u.s. ease to travel restrictions for dozens of nations including japan. turning to the open in sold this morning, -- seoul this morning, the tech heavy gauge gaining some ground. the korean won under pressure. a final read on first quarter gdp was revised higher. we did have the jobless rate higher. job growth did rise for a third straight month, at a slower pace than the previous month. the asx 200, gains of a 10th of 1% while bonds are rising for a third straight session in australia as we consider the rba stance on inflation. good prospects for a pickup when

it comes to wages and prices. cpi likely to be within the target range. checking on oil, wti holding above the $70 per barrel mark, brent opening above $72. >> our next guest says nearly every asset is vulnerable to hawkish central banks. joining us now is michael jones. great to have you. i want to get to our markets live blog question of the day, asking to what extent are inflation risks already priced in across fx? we are expecting china factory prices the highest since 2008. when you look at five year breakevens, they peaked back in mid-may. is there a sense some part of the market is starting to come

to more reality of where inflation that is not transitory grows from here? >> you never want to bet against the bond market when it comes to forecasting inflation. with moves in the 10 year treasury and so forth, bond markets all over the world are saying whatever happens in the headline inflation numbers, central banks are very comfortable that this inflation surge we are seeing is going to be transitory, central banks are going to continue being accommodative, continuing buying out on the long end of the curve. whether it is bonds or stocks, history says markets don't really care about inflation, per se. they care about inflation one central banks start caring about inflation, raising interest rates, setting off -- shutting off the printing press.

>> does that mean you ride the commodity roller coaster? or is it time to start looking at other parts of the market for inflation hedges? >> the most important commodity is oil. while we are bullish on oil as a commodity because we think there could be real cutbacks in capital investment in fracking in the u.s. and that would put pricing in the hands of opec and russia, when i think of the commodity complex, oil companies themselves, they have had a fantastic run in 2021. we don't see the justification for that. we think when the history books of the future are written, they will look back at may of 2021 as the point when the decline of big oil became inevitable. they lost in court, they lost allies at the iea and money managers.

they lost customers where gm is committed to getting out of petroleum-based cars in the next 15 years. the commodity roller coaster, it has been a great ride in big oil thus far. we think it is time to get off the bus. >> where would you get on? is there any other sector in the industry that could see more upside? >> absolutely. whenever there is a huge industrywide -- excuse me, economy wide transition like what we think is going to be happening with big oil, it creates huge risks, but also opportunity. there is temptation whenever there are dramatic moves to go chasing the most speculative thing. if you want to chase tesla at 600 times earnings, go ahead, but my style is more to think, what is a less overvalued way to play this trend? if you look at panasonic, they are the sole battery supplier to

tesla. they are not at 600 times earnings. they are at 18 times earnings. they have a dividend yield and they are below the 2018 hi. they are signing deals with all the major auto suppliers to be essentially like the big oil of the next 50 years. the other big beneficiary is utilities. they are at 20 times earnings, 3% dividend yields, and importantly, highly leveraged operationally and financially. if they get more revenue, profits go up a multiple of what revenue goes up. you have to think that as people stop filling up at the pump and start filling up at the meter, that is big revenue increases. >> boring and defensive is not a bad thing in this environment, right? let me go back to the chinese central bank being one of the only ones starting to worry about inflation. what does that tell you about

where the yuan is going? >> the yuan has been on an incredible tear. i think it is putting pressure on central bankers in china and policymakers. they have been cutting back on credit creation. they have been pulling back on banks' ability to make new loans. they have been tightening reserves in the system. all of that while you have the fed printing money like crazy, the european central bank. pressure is basically putting pressure on china to say we can no longer be outlier here. it is time for us to ease up a little bit on our credit restrictions because no one else is yet. >> great having your insight. thank you. these are the stocks we are watching right now. asia travel stocks like those airlines stocks.

given the u.s. state department has loosened their travel warnings for dozens of nations, which include south korea, japan, and singapore, these are the stocks we are watching. ana holdings as well as japan airlines. korean air seeing upside. global air passenger traffic is inspected to recover to 50% in 2021, surpassing that in 2023. we continue to see upsides. now the first word headlines. >> u.s. health officials are issuing warnings about more harmful covid-19 variant first identified in india. anthony found she says the variant is surging in the u.k., where the vaccination rate is high. he says it has taken over the

alpha variant that originated there and accounts for more than 6% of cases being sequences and the u.s.. -- being sequenced in the u.s.. ending outstanding tariff disputes in brussels. draft documents reveal both sides will pledge to remove tariffs, bringing an end to the steel and aluminum conflict by the end of the year. also, a plan to end a near twenty-year aircraft dispute that worsened under president trump. it led to levies of more than $18 billion for both sides. the u.s. and eu are also set to push for investigations into the origins of covid-19. they are calling for progress on an evidence-based, expert-led study free from interference. the u.s. is among several countries that have called on china to be more transparent with data as questions mount over whether the outbreak began with a wuhan lab leak. chinese reagan leaders are said to have -- a fresh round of

stress tests on the world's most indebted developer. authorities led by beijing's top financial regulator recently told lenders to address their capital and liquidity exposure. evergreen shares have slumped on negative news. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> let's get back to sophie for look at the markets. >> china's inflation data may boost the appeal of the currency. prices are expected to keep eating up -- heating up which would widen the gap of cpi as supply shortages on the mainland and higher prices helped fuel the pickup.

cpi certainly has been wide. we have seen assets tread water. we have dollar weakness looking to underpin potential gains in global stocks. they see rotation out of u.s. stocks accelerating as growth in the u.s. for the second half faces inflation pressures. >> still ahead, we are counting down to the latest inflation data out of china. we will get more from barclays asia-pacific chief china economist later. ♪

>> the u.s. senate has passed a sweeping bill to invest almost $215 million in bolstering u.s.

manufacturing and technology. this will help america compete with china's growing economic and military prowess. let's bring in our greater china executive editor. there is the money going to be used? >> is going to be used to bolster american manufacturing and the technology sector. this is a bill that's going to try and help the u.s. maintain its lead in the technologies of the future. that is where the great competition between china and the u.s. is headed. you are seeing money spent on r&d. 52 bullion dollars being set aside for the semiconductor industry to increase production in the u.s.. u.s. r&d spending most recently was about 0.7% of gdp china. 2.4% in 2020. you can see where the competition is headed. >> the bill goes to the house.

what are the chances there? what kind of reaction are we expecting from beijing? >> the chances in the house are pretty good. there are not many issues that unite the parties better than china. the other big legislative news out of the u.s. is president biden struggling to drum up support for his infrastructure bill in the senate. this is sort of an infrastructure bill. it is money for manufacturing, for the fundamentals of the economy, unwrapping this picking on china wrapper. reaction is an beijing will be relatively muted. it is not going to directly affect china. the reaction in beijing will be competition is good. >> we have heard the u.s. and the eu are renewing their push to really uncover the origins of the coronavirus pandemic. this will just add to more

tensions between all sides. >> this has been a very touchy issue for beijing. there is sort of an underlying assertion in this theory about the virus coming from the lab in wuhan, which is that the government hid it. there is concern any outside investigation into the origins in china will be political theater that aims to make beijing look bad. beijing will resist that as long as that is what the ultimate aim is. >> as leaders gather for the g7 meeting, president biden will be seeking support from european parties about his tough stance on china. one way to convince them might be to raise concerns over cyberattacks and the alleged buying of angela merkel via undersea cables. a new cable, the first

manufactured entirely by china, will emerge off the coast of the south of france. the u.s. is refusing to use it. dani burger looks at the risks for european data. >> they are the internet skeleton. about 400 of them cover the planet. at the end of this year the latest undersea cable will emerge off the south of france. dubbed the piece cable. it will be able to transfer 90,000 hours of netflix from china to africa in -- >> we use many to transport chinese data. >> it will be built by a telecom giant who operate in marseille. the french port will connect china to europe via egypt over 7500 miles across the red sea and the suez canal.

another route will be to south africa over kenya 9000 miles across the indian ocean, a feat in engineering. the biggest hurdle may be geopolitical. a sticking point on security for the u.s.. >> canada, we have seen data rerouted to china. we have seen what happened with the african union. it is clear huawei has a pattern of behavior that shows data being moved to china. >> internet giants like google and facebook said they won't use the cable officially because they have not updated transfer capacity. however, last year both google and facebook suspended part of another cable they were supposed to build between l.a. and hong kong over data security concerns. while the u.s. has taken a harder stance against chinese telecom technology, emmanuel macron and angela merkel have

signaled that despite the security risks, they will not isolate china. >> you don't take unnecessary risks, but there are many risks associated with taking a nationalistic view to technology. it can potentially break the architecture of the internet. >> whether or not the u.s. is happy, the proportion of chinese built undersea internet infrastructure is protected to grow -- projected to grow to 20% in the next decade. a silent fight underwater for supremacy of the world wide web. >> you can get around up the stories you need in this edition of daybreak. subscribers go to your terminal, also available on mobile ♪

>> a first of its kind debt restructuring in china's bond market underscoring the risks of the industry. the move is being watched around the world as restructuring raises concerns about. joining us now with the details as our china editor. what is the story about? >> people -- guarantees ra gentlemen's agreement to cover bonds that are coming due in future years. because they have not been tested in court before there is not clear chinese guidance as to how they are able to be implemented. whether or not -- whether they can be court enforced to be put into effect. >> what are the latest concerns

about ever grand? >> there have been recent reports, we have this report china was looking into china's biggest developer and the bank that it owns roughly 40% of. the bank owns a good chunk of this bond. it also lends heavily to ever grand. the government is looking into the relationship between the two of them. making sure everything is above board. there have been concerns regarding ever grants, one of china's most indebted companies. they have these checks as to how evergrande is doing and how exposed the financial system might be to it. according to our colleagues at bloomberg intelligence, more than 80% potentially of the remaining debt maturing this year is owed to banks and not bonds.

if for whatever reason evergrande cannot make debt payments the next several months, it is the banks that will be most exposed in the near term. >> let's get you a check of the business flash headlines. softbank is said to be in talks for a loan of $7.5 billion. sources say mizuho bank is coordinating the deal and the proceeds will provide investment money for softbank's vision fund. collateral would be receivable from the cash portion. robinhood is looking to go public in july after plans slipped for a listing that could have happened in june. the company wants to time the ipo so people are back from the fourth of july holiday. robinhood appointed new board members in preparation. it is also rolling out tech

enabling customers to buy into ipo's. the u.s. air force says boeing has been charging japan excessive prices for military contracts. report seen by bloomberg says japan was in one case charged a 1500% markup for a refueling tanker plane contracted by the u.s. air force but paid for by japan's government. boeing denies overcharging. jsw steel is suing three of the largest u.s. steelmakers for allegedly conspiring by refusing to sell raw metal. cost increased after the company stopped supplying semifinished. jsw steel's it has not been able to get enough supply from outside the u.s. after the trump administration put tariffs on imports. a biotech firm with no products on the market after 20 years is benefiting from the stock frenzy

and the approval of biogen's alzheimer's drug. it is up 911% making it the third biggest gain or -- gainer behind gamestop and amc. it makes an alzheimer's drug that is still years away from regulatory approval. >> crude holding around $70 a barrel. we will have details. ♪

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>> consumer confidence seems to be on the way down according to the latest gauge. month on month numbers for june seeing a fall. the index itself coming into -- coming in out 107.2 falling from 113.1. melbourne remains under lockdown. another outbreak of covid-19 and the slowness of the vaccine rollout, estimates the borders

-- national borders that is will not open for the next year or so, causing down trend. the index declining 5.2%. optimists still outweighed pessimists. 100 points of division between the two. a chief economist at westpac saying this is due to the lockdown in melbourne and this is back to level -- to the level we saw in january. the lockdown in melbourne is expected as long as we don't get new cases to end thursday at midnight going into friday. let's get you to su keenan now. >> we start with of the u.s. senate. it has approved a sweeping law and that helping the u.s. compete with china. the bill passed 68-32 in a rare spot of bipartisanship for the otherwise polarized senate. it proposes an almost quarter

trillion dollar investment in u.s. manufacturing and technology including research and development in universities. the bill still needs approval in the house. >> this legislation will enable the united states to out-innovate, out-produce, and out-compete the world in the industries of the future. >> president biden's top advisers as china has only itself to blame for a global backlash against its policies. beijing understands militarizing areas of the south china sea and using a more assertive approach to diplomacy has helped fuel global tension. he says xi jinping is increasingly the sole leader of china rather than part of the team past chinese president have been. a senate investigation into the january 6 assault on the capital has found widespread mistakes made by federal agencies.

the report reveals intelligence on a possible attack was not properly transmitted and that capitol police lacked necessary training to prevent the mob from breaching the building. the report did not explore the cause of the insurrection. the times newspaper says the english premier league is close to a multimillion dollar financial settlement with six rebel clubs over the failed breakaway super league. punishment could be finalized on wednesday with settlements seen as quicker than a formal disciplinary process. the epl is planning rule changes to block future breakaway bids. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. >> look at you straight to

the markets. >> asian stocks are mixed. bonds are higher tracking overnight. holding steady around a month low in the asian session. the kospi losing 0.2%, losing ground with the korean won as we digest the latest read on gdp for the first quarter which did come in faster. jobs data coming through showing us 3.8%. korean airlines along with ana in tokyo gaining. asi shares staying at the upper limit for a second day. we are seeing consumer staples leading the region along with energy stocks. oil prices are staying elevated. higher commodity prices have also boosted the appeal of credit.

ocbc's andrew wong investing in commodities despite opportunities in the credit space to mitigate inflation risks. >> let's take a look at those commodity assets. we are seeing wheat and canola futures under pressure after we saw gains in the commodity space. we have the usda saying they will be investing $4 billion in food supply chains. we see that heat affecting crops in parts of the united states. futures under pressure, but this after a significant gain the past couple days, especially on those wage talks ongoing. jeffrey saying if the elected presidential candidate wins in peru, there will be a risk premium and perhaps foreign firms will halt mining. brent holding above $72 a barrel

after we saw u.s. stockpiles falling. wti back above that $70 a barrel level for the first time is it two years. many fuel consuming nation's battle new virus flareups. our asian energy editor joins us now. >> west texas intermediate, the u.s. benchmarks, closed above that key seven dollar -- $70 a barrel mark for the first time in more than two years yesterday. it is a key psychological level and it really suggests the demand is starting to pick up for fuel. especially in the world's largest soil consumer -- oil consumer in the u.s.. that is accelerating vaccination

and easing of travel restrictions. the state department has eased travel warnings for some countries including france, canada, and germany. that sort of paves the way for listening airlines restrictions and more trips overseas. one other key point, the american petroleum institute said yesterday u.s. oil supplies fell by 2.1% -- 2.1 million barrels. that would be the third straight weekly decline in u.s. stockpiles which really suggests demand is growing in the u.s.. >> china has led the recovery, but we look at major economies like india, we are seeing a lot of stumbling blocks. >> the recovery is very uneven. particularly in asia, there is a

strong -- a lot of strong economic activity out of china. india is suffering with a second wave. looking at mobility numbers from apple which really suggests driving from countries in asia, the mobility levels, we are still down below pre-pandemic levels. in other places like australia and japan, there are little bit stronger. it is one we will have to continue watching to get a better sense going forward. >> coming up next, we take a look ahead to inflation numbers expected to be above when it comes to producer price inflation out of china.

♪

>> less than an hour away from it inflation data. china is expected to see the largest inflation gap between factory data and consumer prices since february 2017.

our next guest says ppi inflation will exceed 8% due to rising input prices. joining us is a chief china economist at barclays. give us your outlook. >> today's data, we are forecasting ppi inflation to surge to the highest level since 2008. the ppi inflation -- sorry, ppi inflation to rise to 1.6%, also up from 0.9 last month. >> we continue to see the close convergent picture when it comes to china's inflation gaining with the rest of the world. it rises together with u.s. ppi. are we going to see more global inflationary concerns?

>> clearly i think we also have quite strong demand coming from the u.s.. the markets clearly are very concerned about the inflationary pressure and globally. we have central banks that have been dodging this in recent weeks. emerging-market central banks have started to hike since a couple months ago. in the case of china is worth noting the chinese central bank, china's monetary easing last year was rather modest. the pboc raised rates twice by 30 basis points total, quite small compared with a lot of other central banks. >> when you look at the gap between headline cpi inflation,

does that point to the unevenness of the chinese consumer? this was one economy where there were not stimulus checks to drive the recovery of the consumer. >> you are absolutely right. one of the reasons the chinese central banks have this, they were talking about limited transmission from the ppi inflation to cpi inflation and part of the reason is exactly what you described. the chinese consumer demand has been quite subdued. recovery has been lagging below expectations even year to date as we see from the latest april data and the may holiday data. >> if the ppi and cpi come in hot, does that drive further momentum when it comes to yen strength?

>> the currency is taking a breather. the central banks have taken some coordinated action and also making statements. the central bank also said the currency cannot be used as a tool to contain inflation via appreciation. the fundamentals behind the chinese currency, we do see it is quite supportive. current account surplus at a record, another 2% or above based on strong trade flow. on the portfolio side we have seen equity and flow positive in may. we have investment flow. investments higher than even the

precode level. -- pre-covid level. >> great to have you with us ahead of inflation numbers out of beijing. it is a tale of two recoveries. the world bank says emerging market and developing nations will continue to struggle with the pandemic and its aftermath. global gdp will expand by 5.6%, largely fueled by expansion in the u.s. and china. the world bank's president spoke to bloomberg about what is driving the need for growth. >> the legacy is it was a deep recession. there was a lot of stimulus and a lot of monetary stimulus applied by the advanced economies and also the vaccines. that turned out to be a key variable in the recovery rates. those countries that had this giant fiscal and monetary stimulus and vaccine recovered more quickly, but that leaves the hard work ahead of getting good investment quality into the future.

the negative side of it is the developing countries had an even deeper recession and a slower recovery. they are left further behind in terms of per capita gdp. >> when investors come on any of the shows on bloomberg television, bloomberg radio, they talk about investing in the developing world. are you seeing enough money flood into the developing world to forestall some type of financial crisis may people are worried about in the beginning of the pandemic? >> there have been bright elements. one is that remittances came back rather quickly. that support -- people from the developing country working outside the borders, sending money back home, that is good for small businesses, families, their survival. from the standpoint of bond

investors, there is a strong reach per yield, but it tends to be concentrated in the less risky areas. it is hard to get that capital to go into fragile situations and the poorest countries. it is a concern because they are taking a sizable profit flows and high interest rates out of the developing world. i think the debt overhang is in a way a bigger challenge or as big a challenge as this new flow. the world bank itself, we put a positive net flow into the poorest countries thanks to donors and our own leveraging capabilities. we borrow $100 billion a year in global capital markets. it is simply not enough for billions of people in the developing world.

>> congratulations to you on this report. the polarity you see in our world economies is something that needs leadership. what is the leadership you need from president biden and the united states? >> a key aspect of the recovery, the distribution of vaccines, actual shots in arms for hundreds of millions of people, billions of people in the developing world. a key step is for the u.s. to decide and release the excess vaccines it is able to produce. we need to recognize it is just a wonder of the world they were invented and the manufacturing, which is difficult to do, is being done in quantity. week by week the u.s. production is going up leaps and bounds. releasing that to the world is really important.

it needs to go to countries that have actual ability to deploy the vaccine quickly because otherwise, it sits in warehouses and that is not where we want it. >> the world bank president david malpass speaking with tom. next, voters are heading to the polls in a presidential election. and be sure to head to bloomberg radio to get in-depth analysis from the bloomberg team broadcasting live from our studio in hong kong. ♪

>> in mongolia, the ruling party looking to consolidate power in a three-way presidential election. if it succeeds, the political group will strengthen the country's mining resources. tell us about the candidates, what is at stake here? >> this is an election for the president's office. we have three candidates, the

former prime minister, a former party boss for the democrats and a third-party candidate. >> what would the results mean for mining in mongolia's gobi desert? >> it cannot be emphasized enough that mining is so important here to the economy. it drives gdp and it will drive recovery from the covid-19 challenges. : copper -- coal and copper are almost entirely consumed by china. rio tinto, the private mining company, is a big player. mongolia has had some dispute over its management,

specifically a couple years ago, there were cost overruns and delays. that has had parties return to the negotiating table. the next president will play a big part in a selling the resolution to the society, mongolian citizens, and going forward with that relationship with rio tinto. which is expected to be the fourth-largest mine in the world. no small potatoes. >> in terms of covid, you mentioned the covid response. mongolia was largely spared for much of the pandemic but we had bad outbreaks this year. what has the response been like? >> mongolia paid -- played it very cautious last year. for a lot of the year, there were no large case numbers. less than 500 for much of the year. then in november last year,

there was the first largest outbreak. mongolia has played catch up ever since. last february mongolia started its vaccine program. it has done pretty well. so far for adults over 18, mongolia has been able to vaccinate with two shots. they have been able to vaccinate adults over 18 years old. 75%. >> that is good to know. here's a quick check of the latest business flash headlines. a biotech firm with no products on the market after 20 years is benefiting from the meme stock frenzy and the approval of biogen's alzheimer's drug it is up 911% year to date making it the third biggest gain or behind gamestop and amc. cassava makes and all timers

drug but it is years away -- an alzheimer's drug but it is years away from approval. he is one of a growing member of billionaire insiders that include the walton family and jeff bezos who have been selling large trenches of their stocks this year. brands include bath and body works and pink. sources tell us singapore's property guru is in talks to merge with a holding company and a deal could be announced as soon as next month. bloomberg reported the blank check company backed by richard lee and peter thiel was in per limitary talks with kkr. the transaction could value the firm at $200 billion. >> let's look at stocks we are watching.

in taiwan watching great electronics companies see output drop as workers are quarantined. we are keeping an eye on tesla suppliers in china after the ev players shipments on the mainland rebounded. evergrande on watch with regulators ordering stress tests. stock went higher tuesday following the buyback which prompted jp morgan to upgrade the stock. analysts noting previous buybacks saw positive returns because evergrande is what we are watching ahead of the china open as well as in hong kong. the bank lowered the price target for 15 hong kong dollars. >> which markets may be overstretched and do for correction -- due for correction.

market coverage continues as we look ahead to the start of trade in shanghai and shenzhen. this is bloomberg. ♪

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♪ tom: it is 9:00 a.m. in beijing and shanghai. avon: our top stories, investors defy price pressure. tom: the u.s. senate passes a sweeping bill to compete with china. the legislation