haidi: a very good morning. i am haidi stroud-watts in sydney. we are counting down to ages major market open -- asia's major market opens. shery: welcome to "daybreak asia ." asian stocks tracking a u.s. rebound as investors bet the fed will still -- scale back stimulus. we have an exclusive interview with asia's richest person.

he discusses the outlook for his business and the global response to the pandemic. >> the resilience of mankind. ultimately, we are trying the human spirit. >> tokyo puts her cap on olympic spectators as organizers try to reduce the risk of the biggest foreign games turning into a super-spreader event. haidi: looks like we are in a sea of green going to the start of trading here in asia, really following the lead we saw on wall street as intimate took a bounce back. we saw the treasury markets combing and the dollar market pulling back and some sense that there will be a calm and steady taper. we are seeing new zealand up by .25 percent and robust upside when it comes to trading in sydney futures in particular after we had a plunge in financials, worsen over a year in the monday session.

nikkei futures just turning positive just now and u.s. futures looking to extend the best rally we have seen in five weeks five point -- .1% in the trading session. shery: we are continuing to see the voices raising a red flag on inflation, those voices getting louder. one of the world's most successful hedge fund managers joining. kathleen hays is here with a recap. what tune is this course singing -- chorus singing? kathleen: they are saying the risk with the fed dealing with it is rising. jim bullard on friday in an interview really got this said more hawkish tilt going when he said i moved my dock for the first rate hike from 2024 to 2022. he's worried about inflation, worried about it moving higher and staying there. that's listen to what he said

earlier today. >> there is upside risk you inflation. could it go higher than what i outlined here? and we have to be ready on both sides i think to be able to react to that, to be memo, just as noble coming out of the pandemic as i think we have to be going in. kathleen: rob kaplan saying we have to treat this like risk management, upside risk, downside risk, but given where inflation is, the chances are that we are going to have to move sooner rather than later. shery: we also heard from ray dalio. what did he say? kathleen: one of the world's most successful hedge fund managers. his concern is that the fed is going to have to move and it's very definitely going to possibly roil the bond market a bit. >> you saw the reaction in the markets when the fed talked

about tightening. i don't think they can tighten a lot without having a big negative effect. kathleen: mnuchin said there is no doubt they need to start normalizing policy on rates and bond purchases. question is how quickly they do it and how the effort to control it will affect the markets, haidi. haidi: what are we expected to hear from the fed chair in his testimony? kathleen: we got the prepared testimony. he is speaking on the fed's cobit response and the main takeaway for anybody trying to figure out this inflation question is he said inflation has notably increased in recent months. however, when effects of the reopening, the supply constraints ease, inflation leaves, too. . the vice chair and then john williams of the new york fed.

a permanent fomc voter said he thinks the economy has substantial further progress to go. he's also singing the same tune for the powell chorus, which is, yes, we are watching it, yes, we can see the risks, but we think that they are not going to last. shery: kathleen hays. let's discuss all of this with our next guest, saying the feds tapering could in -- could lead to increased agility. joining us is the vice chairman at 1879 advisors. james, always great having you with us. this gtv chart on the bloomberg showing how the 12 month eps forecast continues to rise. ubs sees that this earnings gains will upset any taper. what do you think? >> i agree. i think the chances of a taper tantrum are -- i hate to say

100%, but pretty darn good. everyone loves free money and as the fed continues to mop up or starts to mop up the liquidity that is out there, and there's going to be a lot of pockets -- pockets within the market that are going to protest a little bit and i think we are going to see yields go up but i think the economy is fundamentally strong enough. if the economy was not strong enough, the fed would not be talking about tapering. it is kind of like good news is bad news. >> we have a return to those days. does this mean in your view that perhaps we will continue to see the cyclical rally that we have had? james: it is a stock pickers market. there's a lot of opportunities for cyclicals to continue to rally but i think they have gotten ahead of themselves and i think longer-term, there is a lot of uncertainty on the market, whether it is inflation, rising taxes, increased government spending, you know, a

lot of investors, we are pretty good at predicting what was going to happen six months or a year from now but looking beyond that, it is hard to determine where the tea leaves are going to fall. we think we are well poised for a stronger economy for at least two years into 2023 and possibly into 2024. we think it's sustainable. we have to get over some hurdles. the way great box are evolving in washington, higher taxes are not going to be as bad as anyone things and spending is going to be less than everyone thinks. haidi: is tax -- -- a good buyingtech -- is tech a good buying opportunity? james: emerging tech or startup tack, those types of -- tech, those companies could suffer.

but techs like adobe or microsoft, microsoft especially is one we live. we think labor shortages and rising inflation risks, we think that there could be a productivity boom that helps to offset any transitory inflation and we think a lot of tech companies are well poised to capitalize on that. >> it was a pretty violent move in the dollar. is that a trend that you expect to continue and where do we see that wayne? james: -- waiting. -- weighing? james: it is similar to my outlook for interest rates. we will find our way back to pre-pandemic levels somewhere around 95 to 96 for the bloomberg index. i think we will take our time getting there and i think that there are spurts depending on

how people are reading the fed tea leaves and how foreign governments react, especially china, with regard to fed tightening, but overall, i think that the u.s. is ahead of the curve in terms of the economic recovery, at least for the free world, and i think that we will probably be in a position to taper first and higher interest rates in our country certainly support the dollar, in my mind. >> what does that say for developing economies for emerging markets? we have seen a little bit of weakness when it comes to the chinese markets, a resurgent dollar, not to mention worries over bond yield. james: well, i mean, i think it could have an impact on materials and certainly, that has an impact on a lot of emerging markets but it is hard for me to say. i am not an expert on the exchange rate situation. haidi: vice chairman at 1879 advisors and you can get more

analysis on the feds policy direction in today's edition of "daybreak." bloomberg subscribers can go to dayb on their terminals and it's also available on mobile in the bloomberg anywhere app. still ahead on "daybreak asia," the selloff in bitcoin is showing no signs of a reprieve. it forms a bearish technical pattern after losing roughly 40% over the next two months. we will take a look at that, next. also coming up, bloomberg's exclusive chat with gracias richest person. he tells us about his plans to transform every company he controls into carbon neutral businesses. that great conversation is next. this is bloomberg. ♪

vonnie: this is "daybreak asia." china's imports of american goods slowed again in may,

putting beijing's targets even further out of reach. 10 billion dollars worth of manufacturers and cultural and energy goods from the u.s. last month, the lowest since last october and that makes total imports $157 billion, only 40% of the target agreed to in the trade deal. the u.s. says 150 million americans are over 45% of the population and have been fully vaccinated. more young people being admitted to hospitals. the highly contagious delta variant is spreading in the south. hong kong is said to shorten's mandatory hotel quarantine, easing some of the strip just border curves. starting june 30, fully vaccinated residents entering the city can quarantine for seven days and that of the

original 21, subject to covert testing. the plan will be extended to nonresidents in late july. the tokyo olympics will cap spectators at venues and the number will be set at either 10,000 people per event or 50% of venue capacity, whichever is smaller. this means japan's national stadium will be full for the opening ceremony on july 23. the aim is to reduce the risk of the games turning into a super-spreader event. 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 vonnie quinn. this is bloomberg. haidi: asia's richest person plans to transform every part of his refining to retail empire reliant industries as it chases the net carbon zero goal by 2025. geeking exclusively to bloomberg, the indian billionaire said the pandemic had put sustainability into the spotlight.

he spoke about the biggest challenges that remain for the global recovery. >> i think the challenges first are to make sure that we get rid of the vaccination divide. it is critical that the developed world be vaccinated by the end of the year. i think we in india have taken many steps but we expect that by the end of this year, first quarter of next year, we will do very well, but the whole humanity that we have to make sure that we are all in it together. the second challenge for all of us is to make sure we bring back the economics, particularly in the more developed countries which have not had the benefit

of stimulus, which have not had the benefit of government money, by really supporting global economics to come back and grow so that we are able to grow the whole world in a sustainable way and not only bring back developed economics. >> the pandemic has shown how critical it is to close that digital divide. do you see technology bridging the inequality gap? what, in your own experience trying to close the gap, what are some of the key takeaways there? >> the digital divide must be breached. among and within nations. this is because connectivity and communications have become the basic needs and also fundamental rights of every human being on the planet, as basic as food,

clothing, and shelter. we never realized this as we did in the corona pandemic. even in india, our prime minister -- our digital services company to rule out -- rollout of 4g network and we were lucky we rolled out the network across the length and breadth of india by 2018. we have always wondered, what would we have done without a 4g network across india in facing the corona crisis? >> -- of -- across india in facing the corona crisis. >> we have no option. society and business must really

adopt sustainable business model to ensure that we embrace the model of clean energy as a prerequisite for growth. we have adopted this wholeheartedly and we are transforming each one of our business lines to be sustainable, circular, recyclable, fully transparent environment, social, and government standards. that is a prerequisite for every business to survive as we go forward. >> does that mean for have styling back some of your businesses right now? is that something that needs to be thought of? >> it will mean transforming our businesses and integrating that

with the future. >> chairman and managing director speaking exclusively with haslinda amin. stay tuned for much more from the economic forum, powered by bloomberg. plenty of big names joining the event and we will bring you the best of them here on bloomberg television. coming up next, bitcoin showing no sign of reprieve. more analysis on the cryptocurrency's fall, next. this is bloomberg. ♪

>> i believe that many of those industries should be in the regulated world, they should follow the same bank secrecy act requirements, your customer requirements, and they should not be the equivalent of secret swiss numbered bank accounts.

as long as we do a lot of work and that was deemed done at the g7 and g20 as well, the idea is to make sure we crackdown on financial terrorism so it cannot be used for ransom tax and other illicit activities. shery: stephen mnuchin on crypto security. we are seeing bitcoin trending lower given all of this regulatory talk. asian trading being down for a sixth day out of seven. let's bring in joanna. it is h china -- china continues to broaden its crackdown on the token. joanna: exactly. we got word last night that china had summoned some banks to talk about crypto and this looks like it is fairly serious and before that, people could say it is a little bit isolated and there are not a lot of officials but this is really a development

thing that they are taking it variously and that there could be real restrictions that could affect the entire crypto space. >> for an asset class that trades on technicals, how ominous is it? joanna: it actually is not. it is a signal that momentum is being lost, but actually, with that coin, it's not a very good signal and the last one was in 2020, the beginning of a year-long rally so that on its own is not too much of a signal. it's more about the 30,000 level. shery: that is the level you are watching. what are some other key levels to watch going forward and why are they important? joanna: bitcoin is around the 31,000 level now and if it can regain momentum and get back up to 40,000, that would be a pretty big deal but like i said, the 30,000 level is pretty key

also because if you get bel that, there is really an air pocket where it could go down to 20,000 or so. it has been trading in a range for about 31,000. if it goes much below that, it could be in real trouble. >> are these trades being made on fear? it feels like there is a lot of skittishness compared to where we were at just a few days ago. joanna: people are rattled by the china issue and what china could possibly do. there is also the issue of u.s. regulatory activity, given some recent issues with the stable coin that drops to zero very quickly so there a lot of uncertainty right now and the loss of momentum has taken away a lot of the enthusiasm that everyone had when it went up to 65,000 by mid april. haidi: joanna on bitcoin.

let's get you a quick check of the latest business flash headlines. global banks like hsbc and standard chartered are ramping up hiring ahead of the opening of connection between china and hong kong and it will allow investment across the border and could open up $460 million for banks. hsbc is set to hire 300 to 400 people in hong kong. it is looking at hiring and promoting 3000 asia wealth managers. a chinese recruitment firm is going private in a transaction valued at $5.7 billion. a consortium reached a deal to buy the new york listed company for $79 per share. the deal is expected to close in the second half of 2021 and it is to be one of the biggest buyouts of the u.s. listed chinese company this year. exxon mobil is said to be preparing to cull white-collar

jobs. a performance evaluation system will be used to identify low performers and to cut 5% to 10% annually for the next three years to five years. they have 72,000 employees globally with 40% of them in the u.s. jp morgan's asset management arm is buying campbell global, a bet on the growth of markets. campbell focuses on natural resources and has five point $3 billion in investments. that deal should be completed in the third quarter. financial terms of the transaction have not yet been disclosed. shery: we are watching the market set up for the major market opens in just about half an hour and we are already in kiwi's docs now higher by .1%, really reversing the losses we saw in the previous session and we are seeing broad upside for those futures, not surprising given we are coming off the worst day since february for the nikkei, down for the past four days and restock the stock

selloff fueling demand for haven assets and stronger japanese yen. the kospi fell to a one-week low so we are seeing a little bit of upside on futures and we are also of course following u.s. futures at the moment, pointing higher. this after stocks rallied from the selloff that we saw last week. markets rethinking the feds hawkish tone and cyclicals also outperforming those tech giants. those are the sectors that we will be watching closely in today's u.s. session and in australia, also, keep an eye those stocks after the worst day in about a month and the aussie dollar because we had pressure from iron or retreating. spiking to the highest in more than two years. coming up next, then said organizers have camped spectator limits at 10,000 people to reduce the risk of a super-spreader event. we will have more out of tokyo, next. this is bloomberg. ♪

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>> we are counting down to the start of trading tokyo and seoul. in south korea, the bok releasing the financial stability report at 11:00 a.m. local time and we have the u.s. envoy for north korea meeting with the south korean minister later. the founder of crafton, behind one of the most successful games of all time, is said to join the ranks of south korea's richest people. he is seeking to raise as much as $4.9 billion in what is likely to be the country's

largest ever ipo. let's turn over to japan because the boj bought etf's for the first time in two months, and coming back into the market after local benchmarks suffered their biggest losses since february. tokyo olympics limiting the number of spectators to 10,000 people per venue and that means japan's national stadium, which is set to host the opening ceremony on july 23, will be less than 1/6 of its full capacity of 68000 and the domestic public opposition of course has been clear to hosting the games. the latest polls showing more support for the event and fewer respondents calling it to be canceled. haidi: maybe people are getting more excited as we get closer to the date? let's get more on the olympics with sophie jackson pete -- sophie jackman. we knew about this cap. in terms of the details, what has been behind this and is

there consensus on how this has been organized? sophie: this decision did come yesterday after meeting of the international paralympic and olympic committees. the organizing committee here in tokyo and the governments of japan and tokyo and it was never going to be a question of stadiums being full. we had this cap up 10,000 people or 50% of smaller venues. would they have no spectators at all? the organizers say it is safe to hold the events at that kind of capacity. a little bit more of a cautious tone struck yesterday by a man many call japan's dr. fauci. he is the head of the virus advisory panel and he said it would be preferable to hold these events with no spectators at all. people coming from all over the country even though spectators are no longer allowed to enter from all around the world and this could bring a higher risk of infection and the rebuttal is

that we have looked at it and most of them will be from the immediate tokyo area and there is one month ago so they have a bit of flexibility in those rules about what they can do. but the guideline is there. but cap of 10,000 spectators. shery: if we learned anything from this pandemic, is that it is really unpredictable. new infections had what is the plan if, for example, covid-19 infections worsen during that time? sophie: absolutely, so tokyo actually was under a state of emergency to deal with a spike in public cases since may and it just came out of that state of emergency on sunday and the organizers were clear to say yesterday that it is another state of emergency, quasi-state of emergency, they are prepared to hold the event with no spectators and be quite lexical on that front that aside from that, their plan is to keep the athletes and other participants

and the general public as separate from each other as they can. athletes will be stuck in their village and buses and be tested constantly and we did just have the first few teams coming through the airport and a member of the ugandan team testing positive at the airport and has been isolated so a chance to test out the isolation measures and we will need to see if, in the coming months, the domestic situation gets worse with public cases or if any more members of these teams coming into the country return those positive tests. shery: let's turn to hong kong because the government is also shortening mandatory quarantines for fully vaccinated residents returning from foreign countries. officials are expected to cut the requirement to just seven days, down from 21 days. michelle cortez has the details and michelle, i know friends and colleagues that really were suffering with this three weeks of isolation that they had to face so is the situation in hong

kong getting better? is this why they are making this move now? >> hong kong has done an amazing job at keeping coronavirus at bay and that is what is kind of constraining the place all this time because they don't want to open up and allow the virus to get a foothold in hong kong and so, what we are seeing now is we are seeing a realization that the rest of the world is starting to open up and these restrictions that go beyond what normal science would indicate, 21 day quarantine, when the incubation period is only 14 days, it is a little excessive. it seems like hong kong is jumping to the forefront here now by allowing to reduce that quarantine time to just a one-week period, but they are doing it very cautiously when it comes to doing things like requiring not only vaccinations but proof that the vaccination has created the protection it is supposed to so the hong kong

moving ahead not necessarily because people on the ground are vaccinated but making sure that people who are coming in are going to have that protection and will not be bringing the virus with them. haidi: how has the quarantine situation been going up until now? michelle: it has been difficult. the number of people wanting to come back in the summer has ballooned and the number of quarantine hotels did not keep pace so there have been absolute outpourings of people trying to come back with their kids, summer vacation to see their family, and in some cases, people have wanted to come back because of a family event or sick loved one, who have not been able to get in. it's been hard to book these quarantine hotels, which by the way, can be very expensive. they have to increase that as well so it has been very difficult. it is going to be a huge boon for people who are trying to come into hong kong to have

better access to the city. shery: tell us who qualifies to go back to hong kong, to go into hong kong. are we talking about on the residence thing allowed back into the city? michelle: at this point, only residents, people who have been vaccinated, so that means that in places -- most of the world, even if you have access to vaccines, those under the age of 12 cannot be vaccinated so we are still unclear how they are going to handle the children. carrie lam said they are going to address that but we do not know for sure so starting in july, they are going to consider fully vaccinated tourists so it might be opening up even further again that idea of hong kong leaping forward ahead of others and when we are talking about what places you can come in from, it is most of the world, places like europe and the u.s., all of those residents can come in. areas where there is still outbreaks like india and brazil, they are having to put up with

that 14 day quarantine. shery: -- -- michelle haidi: michelle cortez. -- haidi: michelle cortez. vonnie quinn. vonnie: jay powell is scheduled to sit before the house later tuesday. in written remarks, jay powell says inflation has picked up but should move back towards the feds 2% target when supply and balance. he has also remained optimistic on the outlook for unemployment, saying job gains should pick up. iran's president demanded an end to u.s. sanctions, calling on washington to return to the 2015 nuclear accord. this is a landslide victory. he suggested he would work to revise the deal abandoned by the trump edna trish and. iran ended a sixth round of nuclear negotiations without a breakthrough and tehran says the next round of talks may be the last. china's import of american goods

slowed in may, putting beijing's target in the phase i trade deal even further out of reach. china bought $10 billion worth of manufacturing -- manufactured energy goods, the lowest since last october and it takes total imports since january 2020 to 157 billion dollars, only 40% of the target agreed to in the trade deal. hong kong's apple daily newspaper may be forced to shut down this week with the parent company blocked by police from accessing its bank account. it will not be updating its finance section from tuesday. a final print edition will be distributed this saturday if it remains frozen. national security police arresting the top editors and impose more than $2 million in assets. 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 vonnie quinn. this is bloomberg. haidi. haidi: bloomberg learned that

four of the top investment bankers are headed -- when it comes to restructuring global strategy to focus on asia. our finance reporter joins us now. a lot of new departures. we know that there is ongoing are people as they try and get back to this part of the world. >> bankers have 60 years of service. that is a huge loss of senior expertise but is not a huge surprise because hsbc has been in a state of flux. instead of focusing on local clients, what they are trying to do is tilt towards asia and service asian clients and also investors in the u.s. who are interested in investing in asia so this is not a surprise in that situation. people are leaving. haidi: at the same time, they are still hiring. where are they hiring and what?

nabila: they will be hiring 50 bankers and managing directors and the focus will be towards asia. in hong kong, they are hiring 300 anchors in the next little while as well. shery: it seems like a good time to focus on asia. the new investment link between hong kong and greater china. nabila: yes, this new investment link will provide investors in nine southern chinese cities the ability to invest in hong kong and vice versa. what we are talking about is 70 million people and 400 billion dollars in investable assets so for the banks looking to cash in on that, there's 460 million dollars in fees on offer so no wonder they are hiring about 3000 people over the next five years in the region. >> nabila ahmed with the

details. coming up next, climate change is becoming the top major financial risk across various different sectors. we will have a report on how to factor it in. this is bloomberg. ♪

>> we have adopted this

wholeheartedly and we are transforming each one of our businesses to be sustainable, circular, recyclable, and fully transparent environment social and governance standards and that's a prerequisite for every business to survive as we go forward. shery: that was asia's richest person speaking at the qatar economic forum about the need for sustainable business models. when it comes to china, fund managers are increasingly grappling with fragmented policies. in its $113 billion green bond market. that is making it hard to assess just how much of that money is going to projects to help environment. let's bring in tom mackenzie in beijing. what exactly is the issue here? tom: the context is that china set itself to be carbon neutral

by 2060 and as a result, you had an increasing number of corporate jumping on the back of this bandwagon and issuing green bond's domestic land overseas. this year alone, you have seen an increase of 250% in terms of onshore and offshore green bond issuance. they have raised 23 billion u.s. dollars. that puts china second globally, only to france. there is a catch. the problem is that only about 50%, potentially less than 50% actually fit the definition of what many see as green when it comes to green bonds. according to groups like the climate bonds initiative or at a big reason for this is that china's regulators notably china's planning arm of the government, allows companies to invest around 50% of their proceeds from these green bonds into loans to pay off loans but also into capital within the company as well, and that has led to this confusion amongst

investors and fund managers, this divergence between what global organizations define as green and what china's regulators define as green. haidi: what is being done to fix it then? tom: the regulators are trying to align the regulations. they have their guidelines. the pboc have a very different set of guidelines, and the csrc has own set of guidelines. three sets of guidelines from different regulators in china that need to be aligned. what they are also doing is they are working with their counterparts in europe to come to a common definition of what a green project is. the problem for these organizations, according to organizations like the climate bond initiative and others, that is only addressing one half of the issue so they are going to get to a where they are going to have an definition of what is a green project but they are yet to address this question of to what extent the proceeds actually go towards those green

projects versus paying off loans and until that is sorted out and organized and clarified, many are saying that the confusion will continue. haidi: tom mackenzie in beijing. countries from japan and australia to italy will default on their sovereign debt if there is a disorderly transition in the world's efforts to fight climate change according to research by the ftse rational and it is -- ftse russell. let's cross to the head of research. what are the risks we are talking about here? >> thank you for having me. if we look at establishing between the different types of climate-related risks, in general, the consensus is that there's two factors. one is physical risk, which can be acute or chronic, so think about it like, if i own a home and there is a flash flood, huge physical risk, or if i'm living

in a waterfront property and over the years, the water rises, if it damages my property, that would be a chronic physical risk. the other type of risk is around transition. these are risks that arise when we are transitioning to a low carbon or zero emission economy and this could be around policy or legal risks, if regulators introduce higher carbon prices, it could be around technology risk, like ev's starting to sell very well, and then all of a sudden, the companies in the internal combustion supply chain, they won't have to have that anymore. there's also transition risks. shery: we are seeing default probabilities by different countries, very different from each other with some having much higher probability. is that because some governments are better prepared than others? >> somewhat yes.

we have to be careful whether they are talking about physical risks, transition risks, or both. for physical risks, a lot of it is about geography, so countries like finland, switzerland, austria, just by the nature of where they are located, they are better protected, whereas places like the bahamas, they are getting hammered by the adverse effects of climate change. transition risk is where governments can take a lot more active action. certainly, when you hear, for example, -- talking about australia, that is all about transition risk. the ftse russell, they have looked up a combination of both physical and transition risks. >> can the guardians of the financial system do anything here? ali: great question. central banks and financial regulators have increasingly been looking at what you need to do and one of the first things

they have come up with is stress tests around climate risk exposures of the bank of england just recently concluded its latest round of stress testing major financial institutions, looking at both physical risk and transition risks. other central banks, the australian one, the european central bank, also introducing these sort of stress tests. the other element is around financial risk disclosure so the g20 set up the task force on climate related financial risk disclosure and they made recommendations around how institutions should go about disclosing risks associated with climate change. the leaders summit by g7 recently endorsed these recommendations and pledged support moving forward to making

these requirements mandatory. only the u.k. has done this right now but other countries may move forward with making similar requirements. shery: and that is so important because you need a global standard in order to be able to compare apples to apples and assess risk. thank you so much for that assessment of the climate financial risk. we have plenty more on bloomberg radio. find in-depth analysis and today's big newsmakers on bloomberg radio, now broadcasting live from our studio in hong kong. listen via the app, radio plus, or bloombergradio.com. plenty more ahead. stay with us. ♪

haidi: a quick check of the latest business flash headlines. four of hsbc's senior bankers are said to be leaving the investment bank as part of an overhaul of the new york operations. sources tell us the executives -- hsbc plans to revamp its global banking business in the americas to better serve asian clients. it is in the midst of a global reorganization to grow its core asian market, which generates most of it off its. the company has filed for an ipo in new york. it owns 21 clubs around the world plus nine workspaces and a home decor retailer. mcr warned of its indebtedness

and says it plans to paydown $800 million in debt using the i go proceed. marvelous new series helped downloads of the disney plus app rise 19% to the top increase last week according to bloomberg analysis. the series is the biggest splash for the superhero brand on the streaming service. according to the ceo, it was the most-watched season premiere ever on disney plus during its opening week. netflix has signed steven spielberg to a multiyear deal to create content area the streaming service secured an agreement with the production company in a buildup on an existing relationship. another project is currently in preproduction. shery. shery: another big interview from the qatar economic forum. you can hear our conversation in

a few hours time. she tells us how she thinks the pandemic has changed digitization. take a listen. >> if you want to have sustainable growth, it must be inclusive growth. it supports economic growth for long-term. one of the areas we have been focused on, as you noted, is ensuring everyone has equal access to the opportunities for jobs of the future, jobs of today and the future, and those are going to be digital based. shery: statement for much more from the qatar economic forum. bloomberg subscribers can use our interactive tv function, tv , to watch our past interviews, including our exclusive interview with asia's richest person. we are watching japanese beer stocks at the open as we head towards the tokyo trading session after we heard from local media that the tokyo olympics organizing committee is

planning to allow sales at stadiums. they were trying to contain the spread of the coronavirus so they are still expected to limit hours of sales as part of efforts to contain these infections. this is according to kyoto citing an unidentified person. haidi, this coming at a time when tokyo is capping spectators at a rent house it -- 10,000 per venue. >> at least they will be allowed to have alcohol and that comes on the back of loosening of restrictions where solo people will be allowed to drink as well. that is quite an entertaining development. let's take a look at how we are setting up when it comes to the start of trading in sydney. we should expect a pretty resilient that rebound tracking through to 1% and we are looking at nikkei futures up by 2.25 percent, just accelerating in the last traded number. also looking a little bit softer but we are expecting asian stocks to track that rebound rally we saw on wall street

overnight in about five weeks as some of those worries over the taper tantrum start to recede. we also get more markets insight with dan gerard, who is with us next. this is bloomberg. ♪

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>> welcome to "bloomberg daybreak: asia." from bloomberg's world headquarters in new york, i am shery ahn. >> i'm haidi stroud-watts. asia stocks said to follow the u.s. high --the reflation trade, investors bet the dollar -- the federal scale back stimulus at a gradual pace.

no signs of an end to a selloff, the original cryptocurrency lost 40% in the past two months. >> an exclusive interview with asia's richest person, chair of reliance industries, with caps on bonnie -- mukesh ambani. >> we have adopted this wholeheartedly, and are transforming each of our business lines. shery: coming online, the nikkei gaining ground at the open. we are seeing materials and utility companies leading the gains. we are coming off the worst day since february. not surprising, we are seeing broad upside of every major sector, given we saw u.s. futures rallying. stocks gained ground from last week's selloff. we are watching gdb close

closely and we see higher for the 10 year yield. we are watching a kospi gaining ground .7%, and coming off the one week low. the koran won getting ground against the u.s. dollar after falling to the lowest in three months. we have a stronger dollar. -- we had a stronger dollar and we have a slightly weaker dollar and that is being felt across the markets. haidi: let's take a look at the first few minutes of the staggered open here, in sydney some broad upside given how strong the pop in futures was .3%. watching to see if we see a recovery among banks that fell more than in a year. we are seeing a pullback now in the recovery in the aussie dollar, 7532. the aussie and kiwi have mostly held onto the overnight gains as we see bond yields and honestly i new zealand advancing following on treasuries. kiwi stocks up .4%. we did get consumer confidence numbers from westpac that

suggest a pickup when it comes to new zealand consumer confidence being lifted on positive jobs numbers, labor market, and encouraging house is what we are getting for the second quarter, the kiwi dollar off just .1%. vonnie quinn has the first word headlines. vonnie: china's imports of american goods slowed in may again putting beijing targets in the phase i trade deal further at a rate. china bought 10 billion dollars worth of manufactured, agricultural and energy goods from the u.s. last month, the lowest since last october. the total amount of import since january, 2020, 2 $157 billion, 40% of the trade agreed to in that deal. hong kong's apple daily newspaper it may be forced to shut down this week. the company blocked by police from accessing its bank accounts

, it will not be updating its up online finance section from tuesday. a final print edition be distributed saturday if funds are made available. police arrested editors last week and froze to million u.s. dollars in assets. hong kong -- pros to billing dollars u.s. and asset. -- froze $2 million usd in assets. a quarantine now for seven days instead of the original 21 subject to covid testing and the plan will be extended to nonresidents in late july. reliance industries' chairman mukesh ambani plans to transform each unit as he chases a carbon net zero goal by 2035. he told the qatar economic forum sustainability is the only option for the business. india's most viable company got 60% of revenue last year from

its hydrocarbon field energy operations. >> we at reliance have adopted this wholeheartedly at are transforming each one of our business lines, to be sustainable, circular, recyclable, and fully transparent, environmental, social and governance standards and i think that is a prerequisite for every business, to survive as we go forward. vonnie: global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: for the next 18 months not much weight at all. joining us is daniel droid, senior multi-asset strategist at state street global markets. -- daniel gerard, what happened last week, you do not think it changes things very much? >> i do not.

i still think, we are advocating for this barbell type strategy. where you should have some type of cyclical reflation trade in your portfolio, as well as a technology and communication side as well. though stocks have held up pretty well in the pullback. it shows you the earnings driven side, it is powerful in both up and down markets. haidi: is this more about stockpicking then thematic investment before we have more clarity around the inflation outlook? and in tech in particular, we are you seeing now, buying opportunities, given trade has become less popular? >> i do not think it is exactly stockpicking, it is more of a an industry picky and sector picking market. if you are picking the best stock in the wrong industry or sector now it is still going to

struggle. i think if you're finding stocks with fall -- solid or few strivers behind them in an industry that should benefit in a challenge market in terms of liquidity, this will be the way to go in the technology side. the earnings drivers are going to matter the most. shery: where do see the cyclical rally going, the cyclical trade? we continue to see more reopening's around the world, especially in european markets. >> we quite like that european opening trade. it is so cyclically oriented, especially in germany. when we see this reopening, was still positive influences from monetary and fiscal policy, i think there's more upside to come within europe. but it is a global trade as well.

global materials, glow energy, global cyclicals in general, this is -- global energy, global cyclicals in general, benefiting from the reopening that is just getting started. we can call it value but it is about the earnings drivers coming from behind as well. shery: what about emerging markets in asia? we saw them lagging. have they been disappointing recently, especially given the headwinds are facing. weather concerns about bond yields or valuations in general -- that we are facing now, whether it is concern about bond yields or valuations in general? >> disappointing is the wrong word. if you look at emerging market returns, sector returns overall, you have had pretty solid returns across the board. maybe not as good in the financial side as and that the m space because you do not have as much trading revenue that has come through. still, you have only had one -- until last week -- one sector that had negative drag, the consumer side.

so i'm quite positive on emerging markets overall. what we are going to see is, as we get to the reopening, you will have many more drivers in the consumer side of the trade. you will have the continue drive and consumer opens that will lead into better financial performance as well. so i understand there is a bit of disappointment. it is not the growth proxy we may have expected last year. but those drivers will come back as we begin to reopen and get better vaccination rates going forward. so i'm quite positive on e.m. here. shery: daniel gerard, senior multi-asset strategist at state street global markets. next, bridgewater associates' ray dalio ways and on the fed and inflation. later, more on our exclusive interview with the chair of reliance industries including his call for an urgent upgrade to the global healthcare sector. this is bloomberg. ♪

shery: we see broad upside across markets in asia with the knee casing is best in a month. we were seeing four sessions of losses. the japanese yen is holding steady 1 at10 -- 110, after rallied in the previous session. the 10 year yield to gaining ground and pushing higher after it closed at the lowest in a week. broad risk sentiment now, the kospi rebounding from that one week low. the korean won gaining against the u.s. dollar at the moment. the asx 200 led higher by energy and materials, though health care is one sector feeling downside pressure. broadly, markets rethinking the fed's hawkish tone. ray dalio says he does not think the fed can tighten more without a big negative effect. the bridgewater associates

chairman and cio spoke monday in a panel at the qatar economic forum. >> there something i 10% of gdp stored in financial assets that is going to be coming out. so it is likely there is going to be a big pickup in demand. that will probably raise prices significantly, and all that depends how you count for inflation. like housing prices. housing prices themselves are going up but rental prices have been going down. big things i think are -- and if you went to a 3% inflation rate, you know that is not one of those things that gets me very nervous or excited. the real issue is, we have a supply-demand issue of bonds. because we are going to have to sell a lot of bonds to those in the world who own bond inventories.

and they have very low interest rates, negative real interest rates. and they are overweighted in u.s. bonds and will have to buy a lot more. and that is also coming at a time when chinese capital markets, or capital markets -- or other capital markets are becoming more attractive. that creates a supply and demand issue that can create a monetary inflation. because there will not be enough demand to buy those bonds. that means that it is likely the federal reserve will not be able to taper or cut back, and might have to increase, to prevent interest rates from going up. that is a classic monetary inflation. that is my bigger concern than just the sport. -- spurt. i think for most of the world, the real question is, what are interest rates relative to inflation? and what is happening with all of this liquidity? because there is a huge amount of liquidity at negative real interest rates.

that means it pays not to own any debt instruments. it pays not to own cash, certainly not cash where you get no interest rate in an environment with some amount of significant inflation. i think it would be over 3% to get taxed at that rate in terms of buying power. when i look at that i think you're going to see the continued inflation and other assets. two borrow houses now -- two by -- to buy, i am seeing interest only loans being made when there is basically no interest rate. in other words, you do not have to pay becker prince will anytime soon. in the interest rates -- you do not have to pay back your principal anytime soon. an interest rates are so low. there is a lot of money being thrown around that way.

that concerns me because you build up a bubble. you saw the reaction markets when the fed hinted at tightening. i do not think they can tighten without having a big negative effect. haidi: the bridgewater associates cochairman and co-cio ray dalio. in asia trading -- for six straight day. john, china is broadening its cracked down on the token. it is becoming more official and that is starting to weigh. >> exactly. china brought in and summoned banks alipay, a payment service provider, to talk about rules prohibiting chinese banks from engaging in crypto related transactions. there has been a number of measures recently. this one really shows they are pretty serious about it. so it is causing a lot of uncertainty about what is -- what it is going to do with bitcoin and crypto overall and pressuring the price of bitcoin. shery: check out this chart on

the bloomberg. we are seeing bitcoin enter that dreaded death cross, the 50 day moving average dropping below the 200 a moving average. how ominous is this signal? >> it actually is not really that ominous for bitcoin. it is a sign to some technical people that an asset has lost momentum. but with bitcoin, it has been a mixed signal. the last death cross in march, 2020, proceeded a year-long rise. so that in itself is not a huge indicator there are problems. haidi: in terms of what we are watching going forward, $30,000 is the one we are watching. where is the floor from their? -- there? > if bitcoin goes below $30,000 a lot of technical indicators say there's an air pocket down to $20,000 so there

could be a huge drop if it goes below that level. it has been in a range of about $31,000-40 $1000 for the past couple of weeks -- $41,000 for the past couple of weeks. we will see if it can break above that. if it goes below $30,000 it could get volatile. haidi: bloomberg cross asset team editor, our crypto and bitcoin watch her. let's take a look at moves we are seeing in the early part of the sydney session. milton patterson moving after shareholders got consideration equivalent of 10% premium, to pretax net tangible assets. this is patterson's agreement by nelson corporation and and all--deal the final special dividend worth $.45 australian each and a for your payout of $.36 australian each and we see patterson trading up 3.5 percent and milton higher by 16%.

the proposal valuing milton at six dollars aussie per share based on current prices, a 20% premium to the current share price. this will be voted on in september, with an issuance of new shares expected in october for milton. two of the big mover so far in the sydney session where we are seeing positivity following the lead from wall street. shery: i'm watching japanese movers because we are seeing big gains for fast retailing, which is seeing its best day in a month. it was down the most in three months. still this following the boj buying etf's for the first time in two months. given that we saw japanese local benchmarks suffering the biggest loss since february we are seeing also tokyo lecture and habits best in the week. the tokyo olympic organizing

committee is planning to allow alcohol sales at stadiums. they are expected to limit hours of sales and allow sales to happen. plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

shery: ever ground -- everg rande is giving sellers a run for their money. shares in the most indebted developer surged an attempt to tap deep-pocketed allies for support. who was at the rescue for the company this time around? >> evergrande is again tapping friends and families and long-standing investors.

it reached out to walter ming, whose businesses spanned from property to finance, agriculture. what happened was, evergrande was selling as sedate -- a stake in one of its hong kong property and to this business ally. it is expected to release $400 million for the debt reading conglomerate. -- the debt-ridden conglomerate that squeezed short-sellers after it bounced from its record low. haidi: how much does it have enough for buybacks? >> short answer is, not that much. the company is hitting a closely watched line what has a minimum free float of 22%. right now if you ask people, what evergrande's strategy is to

get out of this debt mire, the easiest way for the company is to spin off more assets and offload more assets to other investors. among businesses it could reselling or spinning off include its car sales platform. it has a water business. a theme park, health care business. also some of the biggest units could come to the market to raise more money. shery: what is the next timeline for evergrande from here? >> key benchmarks we are watching or key dates we are watching include june 30, when evergrande promised they will reach one of the so-called three redline ratios. that is a ratio that china is asking developers to follow to curb their debt ratio now.

evergrande is one of the few remaining large developers that has reached all three lines. -- breached all three lines. haidi: our china investing editor with the latest. global banks like hsbc and charters wrapping up hiring ahead of links established between china and hong kong. this will allow investment across the border and could open 406 million dollars in annual fees for lenders. hsbc is such a higher 300-400 people in hong kong. standard chartered is looking at hiring or promoting 3000 asia wealth managers. -- most senior u.s. senior banker said to be leaving a bank as part of an overhaul and its york operations. executives departing hsbc says it plans to revamp the business and america's to better serve asia clients. hsbc is in the midst of a global reorganization to grow its core asian markets which generate most of its profits.

jp morgan's asset management arm is buying a green focused investor on a bet on the growth of carbon offset markets. the company focuses on timberland and natural resources and s 5.3 billion dollars in investment and the deal should be completed in the third quarter. financial terms of the transaction have not been disclosed. a chinese recruitment firm 51job is going private in a transaction valued up $5.7 billion. a consortium including dcp capital, ocean link and ceo rick yan reached a deal to buy the new york listed company at $7n dollars per share, said to be one of the biggest buyouts of a u.s. was to chinese company this year. shery: exxon mobil jobs that u.s. offices, the performance and valuation system will be used to identify low performance and cut five tash 5%-10%

annually for the next 3-5 years. 40 of exxon mobil employees were in the u.s. the reliance industries chair plans to transform every unit in his conglomerate as he aims for net carbon zero. shery: the currency space now, we are seeing broad upsides for the korean won. a little bit of strength for the japanese yen as well. pressure for the aussie and kiwi dollar but this has to do with the dynamic at play with the u.s. dollar having now fallen, seeing its worst day in two weeks as the markets rethink the fed hawkish tone we had recently. we are watching now the movement across the currency space. the korean won getting ground after falling to the lowest up to three months. plenty more ahead, this is bloomberg. ♪

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shery: vonnie: --vonnie:this is "bloomberg daybreak: asia." demanding an end to u.s. sanctions calling on washington to return to the 2015 a court. -- 2015 accord. the newly elected iran leader made this announcement. tamron says the next round of talks maybe the last. -- tehran says the next round of

talks may be the last. for the federal reserve chair is expected to speak tuesday and in marks prepared for the testimony powell says inflation has picked up but should move toward the 2% target. he remains optimistic on employment saying that job gains should pickup. the u.s. says 150 million americans, 45% of the population, have been fully vaccinated against covid-19. however, cases are accelerating in several poorly vaccinated states, with more young people being admitted to hospitals. the highly contagious delta variant is spreading in southern u.s. states which have lower inoculation rates and the rest of the country. the tokyo olympics will cap spectators at venues at either 10,000 people prevent or 50% of venue capacity whichever is smaller. that means japan's national stadium will be at --for the

opening so money july 23. the aim is to reduce risk. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: asia's richest person, mukesh ambani, planning to transform reliance industries to achieve a net carbon zero go by 2035. speaking exclusively to bloomberg at the qatar economic forum the billionaire said the pandemic put sustainability into the spotlight. he spoke about the biggest challenges that remain for the global recovery. >> i think covid is a once in a century humanitarian crisis. the world was not prepared for it. the crisis, testing the resilience of mankind. the world has suffered, but

ultimately, what will triumph is not the virus, but the human spirit. we have seen unprecedented global solidarity. the unthinkable has become possible. no one could have imagined that the world would produce a vaccine in less than one year, and vaccinate the whole world and a couple of years. so i think that as humanity in trade, commerce and global economics, we have a lot to learn and more and more of the unthinkable is going to be possible. even if you take qatar's example, that we in india will never forget, qatar's friendship during this crisis. it moved much beyond commerce.

they even used other passenger aircrafts to get medicine and supplies to india, in time. and what this has shown is that qatar may be a small nation in size, but it has a very big heart. trade, along with purpose and compassion, is the way forward. that is going to get all of us, as humanity, together, to integrate and make sure that, collectively, we can deal with us as one,. and help each other moving forward. so, to my mind, this, for the global economy, as a fork in the road. it gives us an opportunity that together we can achieve mark. -- we can achieve more.

>> what you view as the biggest challenge as we emerge from this pandemic? >> well, i think the challenges first are really, to make sure that we get rid of the vaccination divide. it is critical that the developed world will be vaccinated by the end of the year and that i think we in india have taken many steps. and we expect by the end of this year and the first quarter of next year, we will do very well. but it is the whole humanity that we have to make sure that we are all in it together. the second challenge for all of us is to make sure that we bring back the economic -- economies, particularly in the more developed countries, right?

which have not had the benefit of stimulus about which have not had the benefit of government money. by really supporting the whole global economy, to come back and to grow. so that we are able to grow the whole world and a sustainable way. and not only bring back the developed economies. toward that, all of us, it industry, government, and civil society, will have to work, as a coalition, not only for our own company and not only for own country, but for the global canonic collective -- global economic collective. haslinda: the pen dominic -- the pandemic has shown how critical it is to bridge the digital divide. the inequality gap, what are some of the key takeaways? >> i think the digital divide

must be bridged, both among nations, and within nations. this is because conductivity and communications have become the basic needs. and also, fundamental rights, of every human being on the planet, as basic as food, clothing, and shelter. we never realized this as acutely as we did in the corona pandemic. even in india, our prime minister had given a call for digital india. and i was privileged, with our digital services company, to roll out a 4g network. and we were lucky we rolled out the network across india by 2018. we have wondered, what would we have done, without a 4g network across india, facing the corona crisis? so, yes, the digital

infrastructure was very useful in work from home, vaccinating our people, making sure our children learn at home, and learned online. i think this trend of digital physical will be the new normal. and into the future, we will deliver most fair health, education, services, also, in a digital-physical sense. so to my mind, it is an absolute must, for all economies, to integrate and enhance this digital infrastructure, which has been so very useful in the corona crisis. haslinda: are you talking about how the network help to bridge the inequality gap. how else do you see your company being able to address the issue of inequality? >> well, i, -- i think that, i

would like to begin again learning from qatar. what his highness has done is, he has used hydrocarbon wealth with his vision, to have qatar as an advanced society, with strong economic and social foundations. the investments in education and health care off the people of qatar -- offer the people of qatar the most advanced infrastructure an opportunity to grow. i think across the world and in india, we must invest in education, so that there is equal opportunity for everybody. and health care, what this crisis has taught us is, we need

to urgently upgrade the health care infrastructure across the world to make sure we are ready for any future crisis. i believe this pandemic will not be the last health crisis that humanity has seen current it is important we in industry and in governments, all work together, to make sure the opportunity we have, to really work toward giving equal opportunity and reduce inequality, across all sections of our -- haslinda: mr. ambani, the pandemic has highlighted the issue of sustainability. businesses are under pressure to commit to sustainability.

how do you view that as a business leader? >> my view is that we have no option. as society, as business, to really adopt sustainable business model, to ensure we embrace the model of clean energy, is a prerequisite for our growth. we, at reliance, have adopted this wholeheartedly. and we are transforming each one of our business lines, to be sustainable, circular, recyclable, and fully transparent for environment, social, and governance standards. i think that is a prerequisite for every business to survive as we go forward. haslinda: does that mean dialing back some of your businesses right now?

is that something that needs to be thought of? >> yes, it will mean transforming our businesses, and integrating that with the future. haidi: the chair of reliance industries speaking exclusively with haslinda amin. shortening mandatory quarantines for fully vaccinated residents returning from foreign countries. officials are expected to cut the requirement from 21 days to seven days. what do we know so far about these tweaks to the policy? >> this is a big change from hong kong, which used to have some of the strictest border curbs and other are allowing people to travel with vaccine coverage and to quarantine for seven days. this is applying to all but a handful of high-risk places. this is officially confirming as my colleagues reported earlier. that brings hong kong closer to

other world financial hubs already in the process of opening up. when carrie lam, and our chief executive of hong kong, announced rules yesterday, she called it a symbolic day. like two weeks without any local cases in hong kong. shery: who are qualified to enter hong kong under these new rules? >> the first phase for residents will be introduced at the end of june. nonresidents could be eligible within a month of that. it is not just that simple like getting vaccines. there are other criteria. people need to test positive for cover 19 antibodies and they need to undergo a several tests during and after quarantine. now the arrangement for children remains unclear which is a concern. if you travel with family and kids are not eligible to get vaccines now, it remains what will be the arrangement for children in quarantine. haidi: has there been any more

momentum when it comes to vaccine take-up in hong kong? >> hong kong's uptake is still quite slow compared to other financial centers like london and singapore. because of zero cases her locally -- zero cases locally, it delays people's urgency to take it right now. that is an ongoing issue we will continue to monitor. >> next, jim ely' -- jimmy lai's apple daily may suspend operations, and we will get you details next. this is bloomberg. ♪

shery: markets are really rethinking the fed hawkish turn we saw last week and we are sing abroad rebound now at the nikkei gaining the most in about a month -- we are seeing a brought down now with the nikkei gaining an amount. we are seeing the kospi rising from. a one-week left -- the kospi rising. the be ok will be adopting 30 year msb's a policy tool devised by the government to control excess liquidity. the asx 200 led higher by energy

and financials. kiwi stocks rebounded from -- kiwi stocks are also rebounding. -- we are seeing pressure in oil markets. brent very close to the psychologically important $75 level. you have analysts including the bank of america calling for $100 oil in the next year. we are seeing u.s. oil time spreads strengthening showing indicating we are seeing tight supplies. we are seeing gold futures rebounding, perhaps the buying happening given we saw the biggest weekly loss in 15 months or so. and broad gains for the agricultural sector with grains gaining ground across the board. haidi: let's get back to hong kong for a key story we have been tracking. the pro-democracy newspaper of

the gelled hong kong tycoon, jimmy lai, the apple daily, could suspend operations wednesday. authorities froze its finances. staff began to resign following the arrest of senior editors on a national security charge. our senior editor, stephen engle, has been on the story. i suppose the writing was on the wall in terms of where this story was headed? >> potentially. whether you to agree with that -- whether you agree with the style of journalism, the apple daily is now seen as kind of the tolerance hong kong until now has shown press freedom, protected under the basic law. now, under the national security law, authorities here have more legal ways to crackdown on activities. they say, according to the security bureau chief, the apple

daily activities went well beyond normal journalistic work. so what has gone from a battle of narratives to the protest movement, to now a legal battle with five senior editors and executives being arrested last week, and finances being frozen. that definitely leaves a lot of questions about the survivability of the apple daily. the long time advisor to jimmy lai mark simon is saying they only have enough cash on hand to last a few days next digital the parent company of apple daily is said to be meeting friday to decide when or if to shut down. others are saying it could be shut down as early as tomorrow, wednesday, or saturday, at the latest, if authorities do not unfreeze some of their finances they have frozen. the same pound daily -- sing pao daily is saying a 30's will not

grant that request because this is a national security investigation that is still ongoing -- is saying that authorities will not grant the request, because this is the national secret he investigation that is ongoing. we will see if the apple daily will survive in print form or digital form. shery: what message is this sending to the international community? hong kong as an international finance hub with normally the free flow of information. >> hong kong's hard earned reputation for transparency is being tested, obviously. it is the battle of narratives. a number of statements have come out. i talked about the hong kong security chief saying, this was not normal journalistic activity. but the beijing liaison office has been hailing the arrest, saying, quote, freedom of the press is not a shield for illegal activities. and that violations will be severely punished. the problem is, over the years,

beijing has repeatedly derided jimmy lai as being an anti-china troublemaker. the people's daily and other state media in china has called the apple daily a dangerous plug organization. even china's foreign ministry this week here in hong kong said external forces are distorting the truth, smearing hong kong's press freedom and spreading rumors about so-called chilling effects of what is going on here. however, human rights watch and others say, this new law is a bottomless assault on press freedom. the second largest shareholder of next digital, the parent of apple daily, prominent investor, did not want to, except to say this. with people -- when people as outspoken as me are unwilling to speak on air about the subject, you can reasonably inferred they are no longer safe to speak

under the national security law. that is the overarching question, is this going to cause censorship, self-censorship? is this going to cause a chilling effect in what has been until the national secured a year ago, freedom of the press protected as a basic law? shery: north asia correspondent stephen engle. tune into bloomberg radio to hear more from newsmakers and get in-depth analysis. listen via the out, or -- via the app or bloombergradio.com. plenty more ahead. this is bloomberg. ♪

shery: here's a quick check of the latest business flash headlines. netflix assigned director steven spielberg -- has assigned director steven spielberg to a multi-year deal. his production company and partners build on existing relationship. the to have teamed up before, last on the trial of the chicago seven and another in preproduction. the marvel series, loki, help downloads of the disney out rise 9% last week according to bloomberg analysts. the series the latest for the

superhero brand. according to the ceo, loki was the most watch on disney plus during its opening week. a member club for creative industry executives is poised for an ipo in york. the organization owns 28 soho house clubs and nine spaces and a retailer. mcr, which has not turned a profit, warns of its indebtedness and says it parent -- plans to pay down $800 million of debt using the ipo proceeds. haidi: we are watching the chinese crypto regulatory oversight role we have seen in the downfall or downturn when it comes to bitcoin prices. these are some names we are watching. waiji soft and brilliance technology, some names that

could move after china summoned officials from its biggest banks to a meeting to reiterate the official ban on cryptocurrency services. we have seen representatives from icbc, and bank, and alipay, reminded of rules that prohibit lenders from engaging in crypto transactions. this comes on top of what we are seeing, when it comes to the environmental concerns and bans on mining. we are tracking a recovery rally overnight. u.s. futures continuing to look positive. taiex futures into the open looking positive and asia stocks opening higher tuesday. tracking the rebound on the prospect of a gradual policy shift from the fed. some stability when it comes to the chinese yuan, given that we saw a pullback for the greenback overnight. shery: stay tuned for much more

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>> in the low to mid single digit range for your we feel good about that and the pipelirt banking. ♪ anchor: welcome to bloomberg markets: china open." yvonne: we are counting down to the open in hong kong. asian stocks rebounding, following a wall street rally, and concerns ease, jay powell set to say inflation will not get out of control. tom: the bitcoin selloff shows

no signs