>> a very good morning. you're counting down to asia's major market open. >> welcome to daybreak asia. our top stories, asian stocks such to start the week lower as investors sever on the reflation trade after the fed's pitted. bitcoin takes a tumble as investors focus on chinese mine closures and attentional revelatory scrutiny.

iran and world powers and a sixth round of negotiations with no agreement a day after the election of the president. >> let's look at how we are starting off the trading week after big news last week, a hawkish turn by the fed continuing to reverberate. this is how it is setting up. sidney futures will see a big decline of 1.5%. futures falling the most since may 2019. u.s. stocks tumbling for a fourth day, the s&p 500 having its worst week since february. new zealand, trading 1/10 of 1% to the upside. the korean trade numbers could be a little bit of a boost. at this point, we are seeing chicago nikkei futures looking flat at the moment.

we see u.s. bonds spiking, that 10-year down to around 1.44%. gold retreating. oil up by 0.3%. a key change is short expectations when it comes to a stronger dollar. it could put emerging markets at a disadvantage. joining us now is asia-pacific investment strategist. is this reversal strand -- trend something that is going to take hold and something ems will need to look out for? >> the previous couple months, we saw the dollar fall pretty hard to briefly below 90. that has a lot to do with the amount of excess liquidity created by the fed. he saw this in a market where the cash is just not needed.

so that has caused a lot of excess dollar supply and that has weighed on the dollar. that expectation for that situation continues. so you see most of the decline in the past couple months fade. but we are still in a situation where the fed is normalizing policy ahead of the ecb and doj and that is probably going to take the dollar index higher. that is what we saw in 2013, u.s. equities, em doing a little more pressure. i think this is relatively moderate. it should not really change the direction of the business cycle that we have now, which is still positive. we see market expectations adjusting for the fed. >> we have been here before.

as recently as march, in terms of the concerns over the dollar, maybe a peak when it comes to the china recovery. valuations have widened. as i provide a buffer for asian stocks? -- does that provide a buffer for asian stocks? >> absolutely. china is one of the stocks we like them both because we have decent long-term growth prospects. the relationship with the u.s. is not as dire as it used to be. the credit tightening we have seen in the first half is likely to stabilize in the second half. also the tech regulatory tightening is also coming towards an end of that campaign. in the second half, i would expect policy headwinds to be less significant in china and that is what is most important. at least in the asian markets,

it is not so much driven by the fed policy, but more affected by domestic policy. shery: what are we going to see in terms of cyclical strength? we have seen the likes of japanese stocks gaining ground on the fact that they are more cyclical than other markets. ken: a lot of things are happening at the same time. we have a relapse of the virus that we are still struggling with. the u.k. was going to reopen and then it was not. the u.s. is still reopening. ultimately, vaccines will succeed. the earlier the developed markets reach herd immunity, which i'm typing at the third quarter of this year, the earlier you will get more supplies for emerging markets. that is the next stage. you carry a story about cruises.

that is also the next stage, the service sector. there is still a lot of momentum going into this. that makes it different from 2013. the cyclical momentum is still there, just not as strong as half a year ago. taking away some stimulus at this point still makes sense and it happens every cycle. shery: also momentum back in the tech space, is this something that could continue? ken: i think that tech space -- that is the future of us. that still has a lot of growth potential. however, this past week, the markets' reaction to the fed news is a bit puzzling, but i would say the next direction is up for interest rates and that might still be a bit of overhang for the more richly valued tech

space. i think the short-term view is the dollar went down and the potential rise still in yields is going to give markets a bit more overhang, but that should not be -- one should be temporary and two, it is something that happens at every cycle. >> great to have you with us. still ahead, from our interview with anthony talent who discusses break away from his family's company and striking out on his own. first, talks of reviving the iranian nuclear deal drags. we will have more on what this means for negotiations and energy markets. this is bloomberg. ♪

>> this is daybreak asia. republican senator lindsey graham says if i hundred $79 billion bipartisan accord on infrastructure is on the table and president biden needs to decide whether he wants to pursue it. he is part of a group of 21 senators who signed onto a proposed framework to be presented to biden. the president said he reviewed the proposal on monday. chinese month orders and rave at risk the knee, bitcoin declines. the rate in china is dropping significantly as bitcoin minds are being closed.

bitcoin is trading around half its record high of $55,000 reached in mid april. u.s. national security advisory -- advisors has try risks international isolation if it does not allow an investigation into the origins of covid-19. he told media outlets america would not accept no as an answer . president biden has ordered intelligence officials to redouble investigation efforts. china has long rejected the theory that the virus originated in a lab in wuhan. >> it is that diplomatic framework, rallying the nations of the world, imposing pressure on china, that is a core part of the effort we are undertaking to ultimately face china with a choice, either they will allow in a responsible way investigators into do the real work of figuring out where this came from or they will face isolation in the international community. vonnie: vaccines covering 36% of

the population. in south korea out real relaxed social starting next month as cases a slow. brazil's death toll has reached half a million, putting it second only to the united states amid a wave of infections which show few signs of easing. 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. >> talks to revive the iran nuclear deal ended without agreement. diplomats adjourned with major gaps remaining on the accord. a day earlier, ibrahim was declared the winner of the iran residential election. -- presidential election. has this affected the dynamic in the talks with the election of a hardliner? >> it has affected the dynamic

but of course, it is still a work in progress. the european union, which has always supported this agreement, and quitting after the trump administration withdrew that u.s., it says they are hopeful that in the next round, delegations will come back with care ideas -- with clearer ideals on closing the deals. that u.s. has taken the viewpoint that while the new president is a hardliner, the person who will call the shots is iran's supreme leader. they are trying to go around the president, or attempt to. that is the dynamic that started to play out were crystallized just hours after the iranian election. haidi: what is the u.s. argument

in favor of a deal and what are the pressures faced internally by the administration? tony: what is clear is that after trump withdrew the u.s., joe biden needs to be share for domestic political reasons that he has what can be presented as an airtight deal, that does not give anything away to iran. there is that. on the other hand, jake sullivan , his national security advisor, said that of course the u.s. -- this administration is interested in a deal, they have now engaged in, because it is the better way to prevent iran from getting a nuclear weapon, which is the ultimate and inescapable goal that any u.s. administration must have. those are the two poles for the biden administration. shery: you mentioned president

trump withdrawing in 2018. no wonder iran wants some sort of guarantee against the u.s. exit again. is this possible? tony: that is one of the things that iran wants. it also wants the u.s. to remove sanctions on the new president that were imposed by the trump administration. there is that. it is all subject to negotiation. the u.s. has played this close to its vest. if any of these things are acceptable, it is too early to tell. shery: let's turn to another oil producer, venezuela. president biden's administration has rejected maduro's call for relief against u.s. sanctions

saying he needs to be more towards restoring democracy, that is after the venezuelan president told bloomberg he wants to work with the administration on the sanctions and normalizing ties. maduro was speaking exclusively to bloomberg. >> we always have to remember that we faced four years of the trump administration, which were four years of direct aggression, of will sanctions -- of cruel sanctions, and damage to the venezuelan economics and society. the politics that donald trump left against his legacy of venezuela are irrational. that caused a voucher between the united states -- a rupture between the united states and venezuela. president biden has arrived, making a proposal to the world, his first speech on generate 20, he said we don't have to

demonize anybody in politics -- on january 20, he said we don't have to demonize anybody in politics. the demonization of venezuela, the demonization of the revolution, the demonization of maduro. hopefully we can find paths of reconciliation and respect. perhaps of mutual benefit and paths that allow us to normalize relations between the united states and venezuela. >> have you seen any signal that suggests joe biden has a different posture, especially as it concerns to venezuela? >> do you want me to be sincere? very sincere?

there has not been a single positive sign, none. it is five months where they are settling into power. the only different thing that might be heard from some spokespeople of the white house and of the department of state is that they agree with the political dialogue between venezuelans without intervention, to look for democratic political changes in the country. that is the only thing. they must abandon the demonization that they make of venezuela, of our revolution, democratic, constitutional, pacific, and of president nicolas maduro to create foundations, objective, verifiable, of a process of negotiation to regularize the lesions between the countries. in terms of win-win, a win--- >> a win-win is possible? >> of course it is possible.

they know it in the financial sector with who we had an impeccable relationship and it is possible to invest in venezuela as well as -- as long as the sanctions are not there. the oil sector knows it, who has invested in venezuela, and who maintains investment in venezuela. we can advance much more. the cultural sector knows it, the social sector, the political sectors know it. >> that was nicolas maduro speaking with erik schatzker. westlake is to buy with american buildings product business. they propose the transaction and it has been approved by the boards on both companies. it is expected to close in the second half of 2021. we have been releasing that divestiture of the american

business as being part of the turnaround strategic review and this sale has been expected. we are now getting confirmation of that. the acquisition will double westlake's building products business to add to those brands as well as broadening its footprint in the north american housing market. more to come. this is bloomberg. ♪

shery: the japanese government is allowing its biggest corporate brand names like toyota, softbank to administer vaccine shots to their own employees within office premises. for more on this, we are joined by sophie. how big a difference will this make? >> this program is definitely a

shot in the arm, if you will, for japan's vaccine rollout, which has been criticized, but it has picked up in recent weeks. this vaccine program would cover more than 10% of the population if everyone at these companies actually gets their shot and that helps take pressure off the system. there is a lot to criticize about the workplace culture and lifetime employment system of these companies, but this is an example of the benefit of that culture. people are youth to accessing health care through their employers and there are often doctors and nurses in house who can deliver these shots. >> we are starting to get a better idea of what this olympics will look like? sophie: we are. last week is when we got the final addition of the playbooks created by the ifc and

organizers that lay out the expectations. coming into this week, we are getting hints and local media about the details such as athletes being allowed to bring alcohol into the olympic village. some are waiting on whether there will be local spectators allowed into the venues or whether athletes will compete in empty stadiums. at the moment, the plan is to partially fill the venues but limit those numbers so they can maintain social distancing. haidi: 18,000 athletes and officials will stay in tokyo village during the next games. bloomberg went inside to check out the facilities and pandemic precautions. >> this is the first olympics in a century to be held during a

global pandemic. we are here at the tokyo olympic and paralympic village where athletes will have to abide by a number of rules. it is located in the waterfront district in tokyo, away from the center of town. built on reclaimed land, the apartments and village plaza is set to welcome 18,000 athletes and officials from all over the world. let's start with the bedrooms. all of the beds are made out of hard cardboard, it is stronger than would. -- stronger than wood. apparently it can hold up to 440 pounds. no need to worry. the mattress, though, is pretty comfy. i think. it looks a little small, though. tokyo 2020 is aiming to be the greenest ever olympic games. the frames will be recycled in the mattresses will be converted into new plastic. next is the place to eat.

this is the main dining hall of the tokyo olympic and paralympic village. this dining hall can sit 3000 people. they have lowered the capacity from 4000. if you wonder what a meal for the world's top athletes looks like, your are some offerings. braised beef and vegetables with herbs, some grilled yellowtail, pork, even some corn and vegetables. this is where athletes will eat their meals. there are these partitions in between each of these vivid when you are done eating -- each of these. when you are done eating, you wipe it down yourself. onto the village plaza, a social hub with a bank, post office, photo studio, and other shops. the complex was made using 40,000 pieces of timber from 63 local governments.

this one is from kyushu. they will all be returned to be reviewed as park benches and other things. the olympic village will open on july 13. shery: here is a quick check of the latest business flash headlines. saudi aramco has closed its tall billion-dollar pipeline deal with backing from china. china has an investment, with global energy partners that will have a 49% energy stake in the pipeline. abu dhabi asset management also invested in the new subsidiary. sony is reinstating cyberpunk into the playstation store half a year after the videogame was pulled following user complaints. the polish game developer has

been working on fixing pledges, sony says performance issues will persist. cd projekt has lots half of its look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds.

>> bitcoin jumped over the weekend on bid a focus on chinese revelatory scrutiny. for more, let's bring in tom mackenzie. housing difficult are these? >> this was the latest step in china's attempt to write in this industry. this is a province where they have a lot of cheap energy, which is number one in terms of the mining companies here and the crypto miners and their

desire for cheap energy and low wages. that region fits the bill. what happened was we heard that officials were saying they were going to reach out bitcoin mining and ether mining, particular the and a city called yanan, where they have a lot of hydropower. we also heard it is willing out beyond the city across the province. power companies are being told not to supply electricity to these companies. we had a tabloid newspaper saying you are looking at about 90% of china's bitcoin mining capacity being shut down in the short-term. for context, the university of cambridge said that as of april of last year, china was home to about 65% of global mining capacity. it is a big blow in terms of mining capacity and another step in that attempt to bring in this industry in china. shery: is this all about energy

user? why is beijing focused on cryptocurrencies? tom: it is energy but it is also control because they cannot easily control the crypto space and they want to ensure that they have oversight and that is why you have seen the closure of bitcoin exchanges in the last few years. you have seen a clamp down in terms of searching online for anything crypto related. the state council saying they want to see mining and trading cracked down upon. that is a big part of it, control and concerns about financial risk. the other component is the extreme amount of energy that mining uses. it is energy intensive and china has set itself a carbon neutral goal by 2060. it is not a line crypto mining with that target. that is also part of the play.

some in the space say that longer term, this clampdown could approve positive for bitcoin and other cryptocurrencies because it had become too centralized in china so it now becomes more decentralized and other jurisdictions. longer-term, that could approve positive. shery: crypto assets under pressure. tom mackenzie there with the latest. let's turn to vonnie quinn with the first word headlines. vonnie: the latest talks to provide the iran nuclear deal have ended without agreement. diplomat adjourned the sixth round of meetings with gaps remaining on the accord that would lift u.s. sanctions on iran in exchange for scaling back its activities. it came it day after a hardliner won iran's presidential election. it is a change that could complicate diplomacy.

taiwan says [inaudible] hong kong has requested that taiwan representatives sign a one china commitment as part of visa requirements. the mainland affairs council says it will damage the rights of people from both sides. china called for taiwan to stop meddling in hong kong's affairs. it chinese paper backed the pboc says based on actions of liquidity tightening could mislead investors and create fluctuations. the financial news in a weekend editorial warned against unnecessary worries over liquidity. the pboc is attached to keep its one and five year bone prime rates unchanged on monday -- loan prime rates unchanged on monday. christine lagarde says the ecb governing council is making progress on the overhaul of the

monetary policy. the governing council met in person this weekend for the first time since the outbreak of the pandemic. the talks aimed to retool the inflation goal and improve its data analysis ahead of an annual forum in late september. 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. >> st. louis fed president says he moved the dates for the tyke after 10 to 22 -- rate hike after 2022 because of hotter than expected inflation. kathleen hays is here with more. this is a huge shift. >> it certainly is, especially since jim bullard is someone who was firmly in the camp of as long as there is pandemic region, we cannot talk about lift off.

on friday, he was asked, where is your daughter, he said, i put us starting in late 2022. the link to it. you have to have the idea that these forecasts for rate hikes are related to the forecasts for inflation, so my forecast said 3% inflation for 2021 and 2.5% in 2022. if that is what you think is going to happen by the end of 2022, you would have two years of 2.5% to 3% inflation. average inflation targeting says he want to get above 2%. the fed was below that for so long. how long do you want to be above it? does that become problematic? does that become a temporary surge? harder than expected inflation driving this. let's look at the dots again. you can see, when you look at

2023, that is the coy year now -- core year now when the main rate hike is expected by the vast majority. 11 see a second rate hike. look at 2022. that is seven of 18 people, more than a third looking for that first rate hike this year. it is important that jim bullard , who was not in this camp, has moved into that camp. the entire fed, the consensus forecast for core pce went up to 3.4% from 2.4%. jim bullard said the inflationary impulse, he welcomes the recovery, this growth is great, but it is trading inflation that is more intense than we expected. he said probably fomc member to did not see a rate hike in 2022 probably see inflation coming back below 2% in 2022.

there is a lot of uncertainty, a lot of it stems on what the economy does, what inflation does. he says right now, that is where he has leading, the first rate hike year. there are three important things i want to tell you. number one, he said rate lift off dots is way out in the future, we are focused on asset purchases. that is a tool we are looking at. he acknowledged that jay powell did open the taper talks last week, but he set it is a complicated issue, it could take several meetings to iron this out. this underscores bloomberg economics' forecast that the taping will start early next year. finally, he said, maybe what i'm looking at is the fed does not need to be buying mortgage backed securities. we see potential housing froth.

we are going to be looking to close for this when we start listening to fed speakers. jay powell speaks on tuesday about covid response and the economy. there are eight others. tomorrow, jim brother -- jim bullard speaks with rob kaplan. rob kaplan says that rate hike would come next year. it'll be interesting to hear a discussion between those two. we are going to be waiting for who is in that when people did to camp, who is in the 2023 camp, who says not until 2024. shery: tons of fed speak coming up and you will break it down for us. kathleen hays there. we will get more on the economic outlook for asia later. this as we continue to see this rotation following [inaudible] coming up, we also hear from

anthony tan about his experience living his family's business and why he still sees untapped potential in southeast asia. this is bloomberg. ♪

shery: this week, we are focusing on anthony tan.

before he founded the ubiquitous southeast asian ride-hailing and delivery app, he could have had it easy. he is the son of a prominent businessman and his grandfather founded one of the largest auto companies, but instead of following in their footsteps, he chose his own path. armed with an mba from harvard, he joined the tech revolution, he cofounded grab, moved to singapore, and turned his business into a super app. now he is taking grab the public with a u.s. listing that could value his company at $40 billion and boost his own fortune to more than $800 million. he spoke to bloomberg about why he sees so much growth in southeast asia and his experience of leaving the family business. anthony: the challenges grab could face as it becomes a public company is improving the

market options in southeast asia. i think we see that southeast asia is a lesser-known region than china or india, yet the market option is clearly here. you see 660 million people live in the region and it has a bigger population than the u.s. it is sharing and educating the world about how young and mobile savvy, how the digital penetration is low, so i think that is one. the second thing is having to prove that the long-term sustainability and how we can keep meeting these targets, so for us, how to keep show inconsistent topline growth as we improve profitability, how we are confident that we are on the right track, and how we are serving not just one country, but across eight countries. >> your focus is on southeast

asia. for you as investors that may not have heard of grab, why would they buy shares as opposed to didi or uber? anthony: it is very different. first, i will talk about why super apps work in southeast asia. first, very young population and you look at indonesia for example, compared to the west, 20% of households have pcs. number two, the urban cities are very densely packed. that makes for a cost-efficient way to deliver goods and services. just thinking about how southeast asia is going through its early days of digital transformation where, across verticals, if you look at grab and industry's penetration, is much lower than the markets in the u.s. or china.

if you look at our super app, the beauty of the super app is it creates -- it makes it cheaper and easier for us to cross our services. it is this super app concept that is clearly fit in the region. >> what about competition, particularly when you look at shoppy, for example. anthony: i think competition is a good thing. it pushes us to innovate, to invent and reinvent. in indonesia, one of our most hotly contested markets, we started out there later, we became the leader in ride-hailing and online for delivery, and more importantly, we are not dependent on anyone market. we operate in eight countries across the region and not one country contributes more than

35% of our revenues. by having a regional footprint, it is key to sustainability, it is key to having this resilience. if you look at covid, covid hurt seven countries more than others and because we were so regionally diversified, we got to enjoy the upside of a better economy environment. >> we want to talk about your ambitions as well because you had been labeled by one of your former employees as you use your laptop when you're on the treadmill, you are not interested in watching movies, you cannot finish books, so what takes anthony tan to continue to explore new opportunities? anthony: we think about what problems are there, what major points are there that we believe we have a competitive advantage to solve? that is number one. number two as we think about, is

this problem big enough that it affects a big part of society? if it does, like thinking about how six out of 10 people in southeast asia are underserved or under banked, so we think about, how do you build something that solves these problems? >> you could have had an easy ride, riding on the coattails of your family's business. your mother was basically your first backer. talk to us about your family ties, even though you branched out on your own, how important that is to you. anthony: my mom has been an incredible woman. when i thought about leaving the family business, it was a hard decision. it is very tough for many of you who have gone through -- or

friends who go through family businesses. i remember my mother told me, anthony, you don't have to live in the shadow of the family anymore. this is your time. this is your time to just go and do it. she put money where her mouth was. she was one of our earliest investors and she has shared so much wisdom over the years. one of her most lasting influences on grab has probably been just how she has taught me the importance of money, of every dollar saved. >> was there any pushback that you did not join the family business? anthony: of course there was. lots of pushback. i had a lot of naysayers, a lot of people who did not agree, who said you will probably fail. but that is a risk. we all knew what we were signing

ourselves up for. >> you have three children of your own and another one on the way. when you are building grab up to be this behemoth, would it be your hope that they follow in your footsteps? anthony: grab is professionally run, it is not built as a family business. it is 100% meritocratic. whatever i have, it will be thinking about how do we help the next generations where it does not have to be my children, it can be whatever next generations, how do you build a company that things to do generations of highly accomplished people that have the heart to serve society? shery: that was anthony tan speaking with bloomberg. you can catch generation x every monday on daybreak asia at 7:40 a.m. hong kong time.

>> you think from the bloomberg daybreak team, we are broadcasting their from our studio in hong kong. you can listen and by the app. more ahead. this is bloomberg. ♪

shery: we have breaking news out of south korea, getting trade numbers for the first 20 days of the month. we are seeing exports rose 29.5% year on year. when it comes to the imports number, rising 29.1% year on year. these are strong numbers but it is a little bit of softening after those outsized gains we saw in the past. we are now seeing exports rose 29.5%, chip exports rising 28.5% year on year. the daily average export numbers for the first 20 days rising 33.7% year on year, but a strong gains but still a little bit of easing compared to those previous couple of months very saw gains of more than 40%. when it comes to the breakdown of regions, exports the u.s.

rising 41.3%, expert to china rising 7.9%. base effects still at play but not as much. haidi: turning to north korea, president's new lead envoy will hold talks to build strategy and support with pyongyang. with korea has opened the door for dialogue with the u.s. he says he is ready for dialogue or confrontation? what are we expecting? >> what we got from north korea over the past few days is kim jong-un for the first time saying that there is a possibility for dialogue with the u.s., the highest level comments to come out of north korea for talks since joe biden became president. previously, they said any dialogue with a time delaying trick. at this point, talks are not in

the cards. the needle has moved but it is up to north korea to decide when talks will be held and we have an opening with actual talks that could be -- that is something that has to be decided and it will come anytime that north korea finds is most convenient for them. shery: how did north korea react to the biden administration so far? especially compared to previous u.s. administrations. jon: it has had some harsh rhetoric. it you -- if you look at what north korea did when barack obama and donald trump came to the white house, the country was more strident. we saw long-range missile testing, nuclear testing, military publications that rattled regional security. so far, north korea has fired off two short range ballistic missiles since joe biden took office, it is different than what we have seen before. kim jong-un seems to be focusing

on the domestic economy and not trying to while things up too much with joe biden. haidi: we know the domestic economy has been under pressure. what did we hear from the north korean leader? jon: we had a rare admission from him that the food situation was getting tense. north korea -- kim jong-un shut the borders at the start of the pandemic, which slammed the brakes from the little trade it has. he is facing a difficult time and the focus of the parties to make the economy better. we are seeing this demented focus from the north korean leader. improving the economy and with

the daily lives of the people seems to be the message that he wanted to deliver to party members at this point. haidi: jon there with the latest on north korea. let's get you a check of the other business flash headlines. a chinese automaker may acquire one of the factories in brazil. the two companies are in talks for a deal that could be several hundred millions of dollars. talks are ongoing and may not and in an accord. there is a deal that would make malaysia's first unicorn with a valuation of $2 billion. we told the southeast asian carp platform could merge with a spac or ipo and could go public by year end. it is aiming for $180 million in a pre-ipo funding raise. shery: china's rates in

southeast asian rate decisions highlight the economy calendar this week. we will discuss all of this with andrew tilton. we will hear about some trades and outlook for markets. this is bloomberg. ♪

shery: welcome to daybreak asia. haidi: asia's major markets have just opened for trade. our top stories, investors sour on the reflation trade after the fed's pivot. the u.s. places pressure on china saying beijing must agree to a real covid investigation.

bitcoin takes a tumble on that a focus on regulations. shery: japan, south korea, australia coming on site. downside pressure with the nikkei losing ground, we are seeing real estate and utilities leading the declines, at the japanese yen hold at the 110 level. the second week they lost against the u.s. dollar. when it comes to the kospi right now, it is done more than a percent. we saw last week, local equities, we will keep an eye on that. we have the first export numbers for south korea rising to 9.5% year on year, strong numbers but a bit of easing. -- 29.5% year on year, strong numbers but a bit of easing.

the dollar declining to a one month low against the u.s. dollar. haidi: let's look at how [inaudible] that a staggered open in australia. what a dip at the open, 0.3% lower after the fall in the futures session, the most since may 19, following the losses on wall street. we are also watching movers after a company sold u.s. housing materials, businesses were watching cba, inc. of australia after it sold its insurance unit. we are also watching out for aussie retail sales, numbers to give the next leg up or down when it comes to this rally. the aussie dollar trading high this morning after we saw losses to the tune of 3% by the close of friday. the kiwi dollar also seeing

upside as the aussie and qe currencies recover after last week's dollar strength. shery: when it comes to the broader markets, it feels like deja vu. resurgent dollar, that weakness in china threatening to weigh on stocks. our next guest saying the fed's hawkish this should not affect equities in the region. why are you so optimistic about asia? >> if you think about what's happening in the u.s., some kind of normalization of monetary policy, what does that mean for markets? many of the big companies have quite the structure. if you see the money going on,

you take asian companies, korea, taiwan, china, the biggest proportion of companies in these markets are sitting on the cash balances. those companies are able to put that cash to work and short-term money markets, bond markets, and you see earnings of greats futures. what we are thinking is earnings have been quite solid. but there have been so many companies reporting fatigue in terms of investors able to actually digest this data. once investors have time to look through the numbers, we think asia is a good shape. >> are you anywhere regrowth is starting to slow down as china led the recovery first? >> growth in certain areas, some cyclical companies in korea, for example, these companies have done incredibly well. those are companies that are a bit vulnerable. if you look at the major

competition of the index, some of the technology companies, i think there's such a strong supply chain around a lot of these companies' earnings, in the near term, into the second half of next year, i think companies are in good shape in terms of earnings potential. >> how much of that has been priced in by the markets? when you take a look at the mining sector, does a value get taken up because the good news is already baked in? >> you are right. our pockets of expensive sectors in the market. -- there are pockets of expensive sectors in the market. you've got big players like china, taiwan dominating the index. with 83% of the total market. then you look under the hood of what is in the markets, you don't have many of these examples. it is dominated by the tech names. i think for text when you

look at valuations, you have to reference what is happening in asia, focusing in on the u.s. there's still a huge disconnect but if you look at the u.s. equity market it is trading on 22-23 times earnings. china, you see the biggest component of the asia pacific index, japan, those company straining on 14 times, 30. it gives comfort for the next couple of years. >> there's a disconnect when it comes to what japan's central bank is doing and what the world is talking about doing. how much of that divergence producing opportunities, or is it more stagnation that we are seeing? >> i think what we are seeing is a lack of overseas investor interest, particularly in china. if you look at a big global investor, the bulk of the assets sitting in developed markets,

em. china is just too big to sit in em. it needs its own asset class, of its own. china by the end of this decade will be the biggest economy in the world. bigger than the u.s. yet in terms of its place in the stock market, it's not represented. we think over the coming years, global investors in new york london, will be adding positions in china -- new york, london will be adding positions in china. >> we have questions about liquidity payment how long will the fears be in the chinese equity markets? >> i think they are going to be here for the next 3-5 years. what we will see is a lot of china bashing over the course of the next few years. we had that in the 1980's and with japan, but the u.s. is using a lot of anti-japanese rhetoric. we will see more of that happening.

because ultimately china's economy is growing faster than the u.s.'s. in the background, you were going to hear a lot of noise. during that noise, they should be adding to their holdings. >> jim mccafferty, joining us, we appreciate your time. let's get you your first ward headlines. >> -- first ward headlines -- f irst word headlines. >> raisi won i ran's presidential election -- i-- s iran's presidential election. hong kong has for the past three years requested taiwan's representatives sign a one china

principle. taipei's mainland affairs council says the recall will damage the rights of people on both sides. china calls for taiwan to stop meddling in hong kong's affairs. bitcoin fell over the weekend , with potential regulatory scrutiny. crypto derivatives exchange wrote saturday that has rate in china is dropping significantly. bitcoin minds are being closed. bitcoin is trading at about half its record high, at nearly $65,000, reached mid april. a chinese paper backed by the be boc says predictions on the quiddity tightening could mislead investors and artificially create fluctuations. they want against unnecessary worries. china's latest activity data,

offering no urgent reason to alter course. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm bonnie quinn. this is bloomberg. >> still ahead, we have more in asia's economic outlook later this hour. goldman sachs. the white house warns china if it doesn't allow a proper investigation into the origins of covid-19 -- the details, head. -- ahead. this is bloomberg. ♪

♪ >> let's get you a look at some of the moves. declines trading in the first minutes or so of trading here in australia. westlake, on the other set of the translation. borrower is selling westlake.

part of a broader strategic move to focus on the mystic business, of course. the outlook, remaining pretty mixed. this deal is a significant step following the strategic review. they had been very aggressive pushing into the new market in the u.s.. cba is another one we are watching. cba, off by almost 3.5% at this point. 600 tony $5 million australian dollars. -- 625 million australian dollars. let's get to the tech center of shenzhen. a percent employee was found to be infected with the delta variant of the coronavirus. it comes amid international pressure on china to allow a real investigation to find the arjun of the pathogen -- the origin of the pathogen. >> it is that diplomatic work,

rallying the nations of the world, imposing diplomatic pressure on china, that is a core part of the effort we are undertaking to over -- to ultimately face china with a stark choice, either they will allow in a responsible way investigators into do the real work of figuring out where this came from, or they will face isolation and the international community. >> we heard constantly from major world powers, whether it be australia, the u.s. we heard in the g7 that this investigation needs to happen. >> yes, that's right, heidi. there has been some divergence between the u.s. and some of its allies specifically on the lab theory. china has pushed back against that. obviously underlying that hypothesis is the allegation that china would've covered up

that it escaped from the lab. china has much more besides a natural origins of the virus, jumping from an animal to human. that is something some european allies have voiced much more support for. saying that is much more likely, the original source of the virus, versus the lab. >> what shape what another investigation look like, take? we know the u.s. has already intelligence agencies looking into it, as well. >> joe biden, the president asked for the intelligence agency to do a summation of whatever evidence they have in the next 90 days. we are waiting for the results of that. another who-led investigation would likely see a sizable group composed of those from europe, asia, africa, potentially the middle east, the u.s. coming to china.

earlier this year, they did visit the lab, but there were allegations that were not allowed to freely investigate. it did not have free access to data that would've shed more light on the situation. >> you know, we heard from jake sullivan saying beijing risks international isolation if they don't i guess play along with these calls for a real proper investigation. what's the positioning of beijing so far? >> i think beijing's really concerned that an investigation would be used to paint beijing is about actor in the situation. especially of it was used to allege cover up by the government here. i think as long as the politics of the issue outweigh the scientific endeavor of trying to find the sources of the virus and trying to prevent another pandemic, as long as the politics out with assigns, china and beijing will

touch will resist. >> coming up next, commodities are on track for a monthly draw. can china claim victory in this year's rally? we will have more on that. this is bloomberg. ♪

♪ >> a quick check of the latest business/headlines -- saudi aramco closed its pipeline it was backing from china and the uae. a consortium led by energy partners to acquire an equity stake in aramco. abu dhabi's message minima, also invested in the news, considering they will have to five years of oil payments for transports were aramco's network. -- for aramco's network.

shares are done more than 6% in the past 12 months -- down more than 6% in the past 12 months. porsche will new joint venture. investing in a double-digit million euro some and will have an 83% stake in the venture. small-scale production is set to begin in 2024. >> take a look at the commodity space. we are seeing extending gains after four weeks of gains already. we are seeing that oil market shifting from the concerns of lack of demand to concerns about lack of supply. this come also coming at a time

when the iran nuclear deal fell through. another six round of the vichy issues -- sixth round of negotiations in vienna. we saw the worst week since the start of the pandemic. when it comes to grains, recouping some losses on friday. we are keeping a close eye on that. -- that spot index, given that we saw the biggest plunge sinks 2009 on everything from soybeans, canola oil, to wheat and other futures as well. but of course, we are watching bitcoin as well, because we continue to see the volatility skyrocketing. this, as bitcoin is under pressure for a second session. this, as bitcoin trades at around the $35,000 level, only half of that record high back in mid april of around $65,000. >> always a wild ride.

>> yeah. let's discuss bitcoin changes we're seeing right now with joan na, who leads our crowd asset coverage. tell us about the bitcoin volatility we have seen recently given the restrictions in china. >> right, it looks like miners are starting to pull the plug to an extent here. the hash rate, the computing power going toward bitcoin has been declining in the past few days. as reports come out about miners shutting down. >> so, what are we seeing in terms of the price actions? >> it took bitcoin down yesterday actually, took it to about $33,000. it's come back since to about $35,000. but it looks like there might've been some selling in advance of that.

it looks like futures were on the bearish side. so people anticipated there would be these shutdowns. longer-term, it might not be so bad. it might reduce supply, which could also increase demand. but for right now, it is adding a level of uncertainty, as these miners shut their operations down. >> we have seen regulatory pressures coming from china for a while right now. are there other factors in bitcoin then? >> yeah, well, there was this other token named titan last week that plummeted from $60 to zero dollars in a day. that just reminded people that the crypto space is pretty volatile. can regulators had already been expressing concerns about the space generally. so that has boosted looks at potential extra regulation. in addition, there is a

technical thing that shows momentum shorter-term is going down, and so that didn't really help either. >> are cross asset team editor - - -- our cross asset team editor. >> it could be too early for beijing to declare victory. global forecast forces -- forces will be tough to overcome. when it comes to supply and demand, what do fundamentals say and how does it work together with what we see quite clearly that beijing wants? >> beijin's -- beijing has had some success around speculation. you recall the speculators have drawn a particular disclosure from policymakers.

but i think it is difficult to draw a conclusion from these rapid declines we sign prices last week. it's difficult to draw the conclusion that this is all about beijing's price controls. i think the fact that we are going potentially to a more hawkish fed is more consequential. the situation in the u.s. is driving prices rather than china. the primary problem that china faces is this is a global commodities boom. there are global factors that will decide prices. china still is a price taker. >> does this mean the rally could continue? >> yes, certainly. if you look at the supply and demand for things like copper, you've got a situation, multi-year bull market essentially emerging because of

the green transition. i think there are longer-term factors here. it's going to be difficult for beijing. against that, we are looking at a situation where globally, monetary policy is tilting towards some prospect of tightening. so that is going to be help beijing -- help to beijing, i think. >> when it comes to commodities, iron ore, it feels like beijing's policies are counterproductive to what they want to achieve. >> yeah, that is certainly true. on the one hand, beijing is desperate to control inflation. desperate to control -- steal iron ore prices. there is a plan to get to carbon neutrality. you've got a push and pull

situation going on in the steel markets. it is difficult to assess where those markets are going to go because of the confusion on the policy. >> jason rogers, joining us from shanghai. take a look at the markets right now. we are seeing pressure with the nikkei now. the worst day since may 11, we are seeing materials and real estate stocks leading the declines. the kispo, down .8%. we will be watching how global funds react. we also have south korea export numbers. we saw a rise of between 9.5% year on year, which is a little bit of anything from previous gains. we continue to see the aussie dollar gaining ground. it rose after it fell to the lowest since december. after westpac said the central bank may raise rate in early

2023. kiwi stocks, also down .1%. wall street's biggest bank have not figured out how to make much money. china, with a loss of $40 million last year. in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's golo. golo helps with insulin resistance,

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♪ >> wall street still has not figured out how to make much money in china. despite billions invested, global banks posted a combined loss of $48 million on the mainland last year. in comparison, chinese banks made more than $24 billion. david, is this diminishing returns? this structural impediments to -- this structural impediment to

profitability. >> it is surprising. you'd think with all the potential, the wall street banks would be doing better. but as we crunch the numbers, three of them made tiny profits, two of them less money. they are really just breaking even. you contrast that with the chinese banks making up $24 billion, there's lots of money to be made in china, but it's mostly being made for now by the chinese banks. >> so what's happening to these wall street banks? why are they struggling? >> it is early days in the business in some ways. they are seeing some revenue rising from some deals. but it's more than being offset by rising costs. they are hiring like crazy at goldman sachs, looking to add about 300 people. credit suisse wants to triple its headcount. it is creating a bit of a talent war. that's just driving up costs for

people and wages. that is feeding into the bottom line. they are also facing very entrenched competition. you've got some of the biggest banks in the world controlled by the government, we are dealing with corporations that have close ties to the government. they're stealing most of the markets here for now. goldman may well be a household name in new york and london and tokyo, but not yet in the likes of beijing and shanghai. >> how do the regulators [indiscernible] is that having an impact as well? >> it's been a regulatory minefield for companies in china, from tech to real estate. we look at the ipo from november that alibaba was trying to lead, that would've been a $400 million payday for these big banks, including city and morgan stanley, j.p. morgan,. there are delays in getting these permits, goldman sachs applied for a permit to get to

100% ownership of the joint venture back in december. and still no green light. so these things are just taking time. >> our senior asia finance editor, daniel scanlon. we are seeing japanese stocks falling. one of the biggest losers on the nikkei, credit suisse and softbank, recently dissolving a long-standing personal lending relationship. the bank, clamping down on transactions with its company according to sources speaking to bloomberg. we are also seeing toyota falling for a second day. losing almost 2%. we had her toyota would be one of those companies, along with softbank that would be offering moderna shops to their employees within their premises. the japanese nikkei is extending losses and falling about 3%. >> south korea's exports rising

29.5%. it really poses more evidence the global economic recovery is gathering pace. for more we are joined by the chief economist at goldman sachs. despite the vaccine rollout, despite up people when it comes to the pandemic, still being felt across the region, that export and demand-side is still very strong. >> indeed. we are still seeing a quite strong industrial side, exports. particularly north asia, as societies open and global demand for goods is there, as other countries are still emerging from the pandemic. that's been very supportive for china and the rest of north asia. we think we are seeing the peak of that. we are going to see more gradual export growth going forward. but it continues to be a source of strength for the region. >> what does that mean for the overall inflation outlook? particularly as we are dealing

with a renewed sense of hawkish and us at the fed and -- at the fed -- hawkishness at the fed and other places as well? >> the demand and supply of growth reopening has differed around the world. that is driving the differences you are seeing in inflation around the world. places where you've got more stimulus on demand, you are tending to see more reopening, price pressures, places like the u.s. in places where you've had more covid difficulties, still virus related controls, the supply is more constrained. the combination of those two things is driving on the differences. north asia in contrast, doing a pretty good job containing covid and has not done as much in the way of aggressive stimulus. you're generally seeing pretty low inflation still, notably in china, but also broadly in north asia. >> does that mean that we could actually see some of those central banks list often

northeast asia? >> we do. we think korea's probably going to be the first to lift off, we think in the beginning of q4. that reflects moderate inflation, strong growth, and concerns about financial stability. particularly in the light of my growing household debt. -- high growing household debt. we will see a rate hike in the fourth quarter. most of the region will likely wait until 2022. effective rates can move higher in countries like india late this year as liquidity becomes less sample, less robust. in terms of actual policy rate hikes, that's going to be a 2022 phenomenon in most countries. >> i think you were going towards southeast asia. we do have a couple of rate decisions there, what are you seeing for the region? >> this week should be pretty quiet, to the extent that some countries might've hoped to

provide a bit more stimulus, there's a more hawkish tone from the fed that would put that off. we didn't anticipate rate cuts there. but we also don't think rate hikes are imminent, because covid control is still a challenge in a number of these economies. i think it is important to emphasize new cases are coming down almost everywhere in the region. but virus related restrictions are still somewhat elevated in india and southeast asia. that is constraining the recovery. that will probably improve, as we get further into the second half of the year. we see faster vaccinations, lower covid. that will open up the possibility for rate hikes in 2022. we would be surprised to see tightening this year and southeast asia. -- in southeast asia. >> how much distortion are we seeing when it comes to the recovery in the markets?

i'm thinking about the fact that international borders, the flow of people, goods is going well, but the flow of people is not happening right now. we see some sort of adjustment -- do we see some of adjusting of structure once we come out of the pandemic? >> we still see flows of migrant workers, working countries back in their home countries, those have held the reasonably well considering the huge disruptions caused by the pandemic. we do think flows of people, flows of tourism, as well as labor are going to take well into 2022, if not beyond, to fully recover. travel restrictions are one of the last things that are going to come back. even in countries that are doing a great job controlling covid. they don't want to reintroduce infections until they have much

higher levels of vaccinations. in that regard, there is positive news. vaccinations are accelerating particularly in north asia and northeast asia and also australia. we are seeing more progress there. but we won't likely reach what people would call herd immunity or high levels of vaccination until late this year. >> we are expecting the longtime rate out of china today. what are you expecting on that front? >> we think monetary policy is going to be stable in china this year. we are not expecting changes there. not expecting significant changes. policymakers in china have been tightening in some areas. but more what i call micro-tightening. whether that be property regulation, efforts and financial sectors, finn -- fintech, environmental controls.

so given that export temples we talked about earlier, it is probably peaking. the policymakers are already taking steps in some sectors to tighten policies. we don't expect to see a broad-based monetary policy tightening in addition to that. >> we have breaking news at the moment. u.s. 30 year yield, below 2% for the first time since february, dropping to 1.44% when it comes to the 30 year yield. at 2%. at one point, we had the 10 year yield dropping to the lowest since march, that would be the 142 level we are talking about. give us your reaction to what's happening. and the applications for asia, as well. >> the market seems to be taking the fed's message that it could start hiking earlier. as a message that it won't

ultimately need to hike white as much. so prior to last week's meeting, they had it been predicting any rate hikes in 2023. now they are predicting to rate hikes in 2023. still a lot of uncertainty around that, as chair powell emphasized. insofar is the fed starting the cycle earlier, that just means it is less likely they would get behind the curve and less likely they might have to tighten more rapidly or more dramatically over the whole cycle. i think the market is seeing the trade-off between hiking earlier versus hiking more cumulatively. that's brought the backend of the curve down. that's generally been good for longer assets, things like tech stocks. and from the perspective of asia-pacific, maybe taking out some of the worries again about

a. rapid or prolonged hiking cycle. it's been short-term positive for the u.s. dollar to extend a bit further. but our global views are that we will not see a prolonged dollar appreciation. the world is still recovering. fundamentally, fed policy, we shouldn't confuse this with a hawkish policy. this is just less dovish then it seemed a week ago. -- than it seemed a week ago. >> andrew tilton, thank you so much for joining us. we continue to see asian yields tracking treasuries at the moment. let's turn to the latest on the globals rollout. the rapid development and efficacy of covid-19 shots from pfizer and maternal has created sky high expectations for -- moderna has created sky had expectations for the mrna

technology. the success is due to the big r&d antics push that started with the predecessor, in his company is will position to tackle other unmet medical needs once a pandemic is over. he's look exclusively to bloomberg's david weston. >> i wouldn't say i knew i could do it. but what i knew was that i had to do it. because i would realize that the consequences, if we failed, would be dramatic. although i have high respect for everyone who tried, i knew that very few would have the data -- the dedication we were having. i was feeling that if it is not us, i'm afraid no one else would find a solution. and that was not an option. so i treated it like, we have to do it. as i understand it, -- >> you took the company toward basic science, the high-risk/ high reward drugs.

you may have been high positions for that. as you looked at the problem, what alternatives did you have? what tools did you have in your toolkit? how did we go about doing it? mrna was not the only alternative. >> let me say that i did position the company when i took over in 2018. but only because of the work of my predecessor. it's not because we had a new sheriff in town. he worked very hard to turn around the r&d. this is why i took over there, let's focus on the science. another thing we did was i knew that in biological science, equal importance with biology was not digital. that was the time that we brought it for the first time. we dramatically increased investments.

in the first half of 2020, it is what helped us dramatically to make this vaccine work. a lot of these things would not be possible unless we had this list. this machine that had digitized. >> let's talk about the future here. what comes next. for the world, for your industry, but for pfizer in particular, you've accomplished something nobody thought you would accomplish, it has really helped save the world, i don't think that is an exaggeration. where do you go from here? you are at a pretty high point. what's next for pfizer? >> after this great success, the question is, if we were able to do it for covid, why not for cancer, all hammers, many other diseases that require treatments? -- alzheimer's, many other visas that require treatments? -- diseases that require

treatments? we can cover a broad spectrum of medical needs. i think there are some lessons learned. thinking out-of-the-box. investing in r&d. creating a culture that can do the -- can make the impossible possible. this is what i think that we will see from pfizer in the next few years, more breakthroughs. >> where are we going because of the pandemic? will we be able to travel the way we use to? will the cities come back with the vaccinations? will it get us back to something? will we be perpetually living a different world going forward? >> i believe in terms of covid, i think we will be able to control it to a level that we could have our old life back.

but i think there were some lessons learned, lessons that we can work remotely as good as by coming to the office everyday. i don't think this will go away. lessons that maybe you can do zoom instead of travel. it will take you three days just to go and compare but i don't think we will see it going away because of covid, but because we learned what we can do different. >> coming up next, hong kong and taiwan, taking a turn for the worse, recalling seven officials for what they call unreasonable political conditions. more on that. this is bloomberg. ♪

♪ >> these are the first word headlines. the u.s. national security advisor says china risks international isolation if it doesn't allow a proper investigation into the origins of covid-19. sullivan told u.s. media outlets america would not accept no as an answer. president joe biden already ordered intelligence officials to redouble covid investigation efforts. china has long rejected the theory the virus originated in a lab in wuhan. >> it is that dip a medic state work, rallying the nations of the world, -- diplomatic state work, rallying the nations of the world, that is a core part of the effort we are undertaking

to ultimately face china with a stark choice, either they will allow in a responsible way investigators in to do the real work of figuring out of where this came from, or they will face isolation in the international community. >> meanwhile, china has now administered more than one billion doses of covid-19 vaccines, covering about 36% of the population. north korea will relax social distancing rules next month. results death toll however has reached half a million, putting it second to the u.s.. -- brazil's death toll however has reached half a million, putting it second to the u.s. lindsey graham says the bipartisan accord on infrastructure is on the payroll. president biden needs to decide whether he wants to pursue it. graham is part of a group of tony one senators who last week signed the proposed framework to present to biden. seeking to set the stage

for the next round of bargaining. biden will review the proposal on monday. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm bonnie quinn -- vonnie quinn. this is -- this is bloomberg. >> the apple daily is fighting for financial survival after authorities froze assets and senior editors and executives fired under the security law. let's bring in stephen ingle in hong kong. what's next, steve, for the apple daily? >> this is a highly watched situation, obviously. hong kong being an international finance editor that needs a free-flowing of information as protected under the basic love. but with the national security law charges against the editor in chief of the apple daily, the publisher, nco, it's

taken a very different turn, raising a lot of questions about whether something on national secured grounds -- about whether it is something on national security grounds, or about media. you saw the footage last thursday when the editor of the apple daily as well as the publisher of next digital work arrested. they were denied bail on the grounds of national security. they have been charged with collusion with foreign countries to endanger national security. the judge who denied the bail said they would continue potentially to oppose the national security risk. the issue with the apple daily is sources are telling us that this freeze on the finances of apple daily is severely limiting the ability to continue to run and print newspapers. printing a paper, with a cost associated, paying the staff, the ink, the paper, this

readers, and the like, his capital incentive pay would sources are saying they have about seven days left worth of cash to keep going at this rate. we are hearing as well they may apply or at least submit a written application to the security bureau to have some of those frozen assets released, so they can pay their staff. the other options are apple daily plans to seek relief through the court, as well as looking at using its taiwan operations to manage digital donations through gofundme and paypal. we are also hearing, if they have to take the physical newspaper down, they can potentially distributed digitally through their operations in taiwan. >> you mention taiwan, we are seeing star ring times between taiwan and hong kong -- souring ties between taiwan and hong kong. what were they being asked to do? >> since 2018, they have been asked, the representatives of

taiwan, have been asked by visa authorities here in hong kong to sign a letter pledging commitments to the one china policy, which of course the government of taiwan is not denying, but is not necessarily recognizing, the one china policy, as defined by china. and past governments by taiwan. it's a tricky situation. under those circumstances, taiwan, recalling the seven representatives raised here in hong kong, they went back to taiwan sunday, yesterday, they put out a statement citing unreasonable political preconditions for personnel to operate in hong kong, this is after hong kong withdrew or closed its trade-off in taipei last month. >> rs chief asia correspondent, stephen ingle, with the latest -- our chief asia correspondent, stephen engel, with the latest. more to come. this is bloomberg. ♪

♪ >> take a look at the markets. we are seeing the nikkei falling. seeing the biggest loss in about a month or so. as we continue to see the downside pressure and extending lhasa since last week. the kospi also down .6%. we are watching the bond yields closely. the 30 year treasury yield also fell to the lowest since february, as well. coming up, we will discuss how investment strategists are shifting, with credit suisse's john woods and hsbc's ceo about

the business of wealth planning in china. bloomberg markets: china open is next. -- "bloomberg markets: china open" is next. this is bloomberg. ♪

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>> happy monday. it is 9:00 a.m. in beijing and shanghai. i'm tom mackenzie. yvonne: i'm yvonne man. we are coming down to the open of trade and the chinese mainland and hong kong. asian stocks start the week lower as investors sour on reflation trades. bitcoin under pressure amid worries about chinese mine closures. tom: wall street struggles to figure out how to make money