haidi: a good morning, welcome to daybreak austria. sophie: we are counting down to ages major markets opens. shery: the top stories this hour -- u.s. stocks climb after jay powell reiterates his stance on inflation being transitory. alice is the jump in prices is tied to economic reopening.

haidi: the wild ride of bitcoin continues. the cryptocurrency bounces back after going below the $30,000 threshold. shery: microsoft makes it to the to trillion dollar club. investors are betting the dominance and cloud computing will expand further in a post-coronavirus world. helping as well as that rotation back into tech. we are seeing tech outperforming in today's session as it has in the rest of the week after the selloff we saw. but, morgan stanley right now saying investors should not jump those cheap cyclical stocks. haidi: we also heard from one prominent advancer -- investor. a financial historian. he is saying this is the biggest ever when it comes to that speculative. his blaming it on when he says

is a clueless federal reserve. and the surprising success of covid-19 vaccinations. he is saying this is been a distinct stock market covering but what happens is far less certain. i wonder, even as we see the rebound in that return into cyclicals, maybe that reflation trade, this suggests we might need to be more cautious. shery: the fact that he is calling this the finale to a 12 year bull market is an interesting call. still, there is optimism out there. j.p. morgan saying they should go in and buy those cyclicals. and commodities. take a look at what is happening in the broader market. u.s. futures on changes in the moment. this after the u.s. -- yes been a hundred gained ground. it has all been what happens with inflations.

chair powell say you are not going to see a comeback of the 1970's style inflation seen in the past. the bloomberg dollar index fell during his comments. at the moment, getting ground after falling in the session because we have heard from russia that perhaps we could see a return of supply. take a look at this on the bloomberg, we saw that strength and tech helping microsoft as well. the cloud computing and parts of the business doing well. this coming at a time where they already had two corrections, notwithstanding. sophie: with that, inflation trade, we have a mixed session after we saw the best in a month. and salt cyclicals rebound. games we saw in oil touching 75. we are also watching the copper sector today.

noting if china moves beyond these measures, that could unwind the metals trade. this inflationary impact. the possibility is being signaled. the 30 year yield around level seen back in 2015 and 2016 when inflation was low. commodities see -- commodity currencies as well, the dollar holding above that mid 75. shery: let's talk inflation. the number one and number two policy at the fed are both betting the recent price urns will be temporary. kathleen hayes is here with this. we had chair powell and his congressional testimony today, again insisting the pressures will be transitory. >> something he obviously sincerely believes, because he said the inflation searches been

called by the dynamics coming out of the economy reopening. as we get past this initial stage, let's listen to what he told congress earlier today. >> we get categories where these prices are going up. it has to be areas directly affected by the reopening. something we will go through over a period then it will be over. >> when you look at used car prices, they are through the roof. do not buy a used car now. better off trying to get a new one. also, very importantly, the fed is going to be patient. inflation is high. unemployment gets lower. they will wait for actual evidence. shery: that evidence, does that include job? >> he said he is positive on the

economy. jobs will pick up. is this because of extended unemployment benefits? people don't want to go back to work. he said what about people who aren't accident, they are still worried about the virus, kids are still home, importantly on the democratic side, maxine waters, a powerful democrat, came late. she went out of her way to praise jay powell's response to the pandemic. that is with this whole thing was about, the fed's response to the shutdown. joe biden has to make up his mind by february. there is a certain positive political ring for jay powell. haidi: president john williams, registered to the more hawkish voices? >> the vice chair, the third one

the new york fed president john williams. pushing back against earlier rate hikes. here's what he said. >> right now, the key issue is when does the economy get to this point where we need these conditions to be set out? that is still way off of the future right now. >> another stock standard phrase, john williams says the fed is not making substantial progress on the goal. he also did acknowledge their upside and downside risks. the fed has to be watching carefully to see whether it is temporary or not. shery: kathleen hayes with us. our next guest, a huge fan,

let's bring in carol pepper, the ceo of pepper international. it seems perhaps, it is working out this week. we have seen the outperformance. how long will it last if you see rate hikes soon? >> i manage money for people who have over $100 million of fat will of network. we are looking for investors with long legs. i have no doubt it will not be a rate hike in 2021 or 2022. as they mention, perhaps in 2023. we will see. that bodes well for the tech trade. it will last for many years, it has lasted for over 10 years. i think it is going to continue because the pandemic has absolutely moved us forward in a tech focused world. that will continue.

shery: what about the games we are seeing in oil? we saw pressure but right now we are again rising. the gtd chart on the bloomberg showing energy stocks not catching up. >> i don't think we are going back to $100 oil. you heard them henson, they are getting to the point where they would like to start a big supply. that will immediately pushed on the price. all of those guys have not been making me for years. they will be eager to increase applied to start capturing gains. i think 5060 is a better long-term price for oil. especially when you see the united states and europe moving towards a noncarbon future. within a couple of years, you will see oil play smaller role. many countries mandating electric vehicles by 2030. i think you might be heading top

right now, this is a supply being held back by pandemic reopening. i don't see it lasting at this level. haidi: carol, you talk about a form of u.s. exceptionalism when it comes to the investing environment, but the global uncertainties, vaccine shortages, that i have domestic consequences? >> they expect the expert markets for the u.s. economy. i do think we are another year before the rest of the world can fully open. we are going to have phase reopening. the u.s. opening verse, europe and the rest of the world. hopefully they know the united nations is working very hard via covax to distribute the vaccines much more fairly around the planet. hopefully within a year, the rest of the world will have the benefit of the vaccines we have. one of the risks unfortunately,

in areas where there is less vaccination, there could be a new strain of covid developing that could come back here the net and states. at the moment, the u.s. has done a terrific job of vaccination. haidi: is there a good entry point at this point? >> we are going to have a few more scary days. that always happens. particularly july, that tends to be a month of the doldrums. watch for another slow day. in the month of july or august. particularly in august, everybody goes on vacation. three to 5% down from here. the long-term direction is up. especially amazon, the sky is the limit. put that into your college funds, your retirement account. haidi: carol, always great to

have you with us. we have breaking news when it comes to japan, we are hearing from the decay that japan has approved astrazeneca's covid-19 vaccine for public use. astrazeneca has had some regulatory issues in a number of different markets due to the rare blood clot event that has been associated with the shot. we are seeing flip-flopping when it comes here in australia for example. the decay is reporting japan has approved it for public use. tokyo organizers for the olympic have banned alcohol sales at olympic venues. just yesterday, we have been purporting that organizers would allow sales at stadium's going into the tokyo olympics. still had come australian snow have less talcum powder than effort.

coming up next, bitcoin bounces back below $30,000. ♪♪ this is bloomberg. ♪

shery: you're watching the senate floor right now. they are voting on voting rights legislation that is ongoing. we are hearing senate republicans have the votes to block that voting rights bill. pretty much expected. senate democrats going ahead with a test vote today on a broad overhaul of u.s. elections. democratic leaders have made the bill a top priority. we are expecting the voting rights bill to be blocked by

senate republicans. it puts the focus on the filibuster rule. that seems to be a big game by senate democrats who are carrying out this note today. let's now turn to vonnie quinn with the first word headlines. vonnie: the united states is likely to under shoot president biden's vaccine target. the white house now says only people aged 27 and above will meet that target. it will take two extra weeks to hit the 78% mark for everybody 18 and older. the u.s. is administering about 1.1 million vaccines each day. china will keep the covid restriction -- cook border restrictions in place for another year. china has largely restricted people who have received a

locally made vaccine. a new survey says australian trust in china has dropped to a record low. more people see the asian giant as a security threat that an economic partner. only 16% were confident that china would act responsibly of the world. down from 52% in 2018. the number of australians who believe the president will do the right thing has half since last year. for more on that survey later this hour, latasha cassondra just from sydney. >> the tokyo governor is reportedly an eye hospital. the government has confirmed that she will take the less of the week -- the rest of the week off to rest. it comes win elections in the capital in the coming days, the tokyo olympics are set to begin in a month.

global news 24 hours a day, on-air and on bloomberg quick take, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: take a look at some crypto assets right now. bitcoin is again headed for the 30,000 level. this after breaking room for the first time since january. we have seen the rebound in the new york session. we are headed down towards that key price level. very close to erasing the entire 2021 gain. traders are very much conflicted about what to do with cryptocurrencies right now. expecting more declines for bitcoin. keook, we are seeing pressures. the chart on the bloomberg showing how big the jump in the past year was. even with all of the losses, so far it is topping all other cryptocurrencies when it comes to those gains. haidi: we continue to hear, no

way crypto and bitcoin go from here. michael mcgrath's is going long on gold. he told bloomberg why he sees the widespread adoption going beyond bitcoin and still saying strong. >> i look at bitcoin in particular as digital gold. bitcoin is a better version because it has the same macro tailwinds, but it is very early in the adoption. people were scared of bitcoin a few years ago. they have moved into the space, hedge funds are ok with it. insurance companies are ok with it. you're playing the option gain and the macro game. i am still a big buyer of bitcoin. the rest of crypto is a giant ventral debt.

they are all part of a new future that is happening. so, that is a separate debt. it benefits from bitcoin's talent. it also benefits if we are building this architecture for the financial world, more efficient, more fair. you can see gen z and millennials moving towards crypto but you can see the whole world now looking at. emily: i'm glad you already brought in, and we will get to that in a second, i'm glad you brought in the definition of cryptocurrency beyond bitcoin. because everybody knows now generally what bitcoin is. i think people are less familiar with the other tokens and the other ways it is used. how are you trading it beyond bitcoin? >> is a great point. for a long time, bitcoin was enough. it was the majority of the market.

it really did approximate the industry. now there are literally hundreds of tokens liquid enough to trade they have all kinds of different uses. you might call bitcoin digital gold. that is a great analog. our theory allows programmable money and tokens to be built on top of our theory of -- a theory him. really important, you think about if you are just on bitcoin, kind of like in the 90's, being just long on yahoo!. there were other important companies to invest it in the 90's. the same here, a lot of different products to be invested. a good example, this year bitcoin is up 34%. our hedge fund it trades at liquid tokens is up 240%. there are 180 percentage points in investing in things that are not bitcoin. shery: speaking exclusively with

bloomberg. stay tuned for much more from the economic forum powered by bloomberg. plenty of big names during the event, we will bring you the best of them on uber television. still to come, microsoft becomes the second u.s. public company to join the $2 trillion club. details next. this is bloomberg. ♪

shery: breaking news at the moment, we have republicans blocking the senate voting rights bill in that showdown over the election. you are watching live from capitol hill, senate majority leader chuck schumer speaking after that voting rights bill was defeated by senate republicans who have the votes to block it. this was a tense vote on a broad overall the u.s. elections. democratic leaders have made the

bill a top priority in response to actions in that gop led state. not to mention, of course president trump's false claims that he was treated out of a victory. republicans voted against that voting rights bill. with to microsoft's place in the history books, the sophomore john -- the software giant has reached a value of $2 trillion, joining apple as the second two so. sue keenan joins us. sue, we should point out that microsoft treated just a few pennies shy of the mark at closing bell. >> a did. but history was made. microsoft has joined that exclusive club only apple the other u.s. company and it. let's correct to the bloomberg because what's important here is we did see microsoft cross this

mark even though it had two significant pullbacks. one in february and again in may. we mentioned, up 19% year to date. it takes its race having crossed the line into the 2 trillion valuation with apple. what is important also, is this is a company that began searching in 2019 as a lot of tech names one higher. it has benefited during the pandemic from debts that it would dominate in cloud computing and enterprise software. in terms of tracking this very exclusive club, it is interesting to note that it took microsoft several years to get from its ipo to -- very quickly in a matter of three years, and

has made second trillion with a couple of contenders behind. haidi. haidi: amazon, alphabet, what is the likelihood of them join the club? >> they are on their heels. they have strong valuation. amazon, a market cap of 1.7 billion dollars. those being followed closely could possibly reach the heights of microsoft. look at the past year or decade of microsoft, stellar performance that has a lot to do with its recent ceo changes. again to emphasize on the cloud, a very strong performance for microsoft. haidi: coming up next, we take a close look at commodities. we will hear explicitly, this is bloomberg. ♪

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>> it is the solution for a longer-term transition. >> our strategy for natural gas, and particular energy. >> gas will play a particular role. >> we need to make the transition real. >> carbon price is absolutely essential. it is also absolutely insufficient. >> innovation as well and policymakers are very important. >> the majority of governments

take this very seriously but it has to be an integrated solution. >> we also have to have regulation that mandates things that are not going to be moved by carbon pricing. >> big names speaking at the qatar economic forum in the green energy transition and just a reminder that the ministry of commerce and industry investment motion agency, they are underwriters, powered by bloomberg. the head of glencore says beijing's efforts to cull commodities markets will not last long. prices will stay high and supply will not meet demand from the u.s. and china. class you have the big infrastructure spend which is occurring in china at the moment. started early with the covid crisis. the chinese scott other problems. they started spending on

infrastructure and pushing their fiscal spending and then so did the rise of commodities prices. you have a few disruptions around the world in certain commodities because of the covid and that tightened up supply. in picking up various parts of the world, we see it in the united dates. the speculation of commodities prices picking up on the back of that will start driving them up so supply fundamentals are putting commodity prices to the levels where they are. the chinese have tried to push it down to bring it back to lower levels. that is a short-term gain because the underlying fundamentals will keep it at these levels. >> how much can they talk it down, china? >> they are taking some material

from the strategic stockpiles and putting that in the market. how big the stockpiles are, we don't know exactly, but they can do it for a while but eventually, they have to restock the strategic stockpile. they will come back into the markets. it is a short-term phase. >> short-term like a couple of months? are we at the start of some super cycle that is different from last time around? ivan: in 2002, we had the chinese coming into the markets, the world was not ready for that amount of demand, and you had commodity races rise can durably. the world caught up a bit and then you have the 2008 financial crisis. chinese came in big with infrastructure spending in 2009 and that kept it strong and put it in the mining industry. the usual situation where they are producing too much. started producing more.

that pushes it down and you have the 2015 commodity price drop. now, started looking better. covid pushed it down as it did and now we have the rise of the infrastructure spending occurring in many places around the world. is this a super cycle? i do believe commodity prices will stay strong for a while longer and i think when the american infrastructure plan comes into fruition, i don't know. let's assume it will take them 18 months to get going. you will have commodities prices staying high for a long time. both parts of the world pushing infrastructure. the chinese continuing with the infrastructure plan. they have to urbanized millions of people and you have the united states upgrading their infrastructure. can supply meet that demand? that is another debate.

that is a lengthy debate. new projects will take longer this time around. we have developed most of the easy projects and we now have to go into the more difficult regions of the world where there is not infrastructure or the political environment and the mining industry is not ready to add to that. shery: speaking at the economic forum. let's get to vonnie quinn with the first word headlines. >> jerome powell maintains that the fed will be patient in waiting to list barring costs. speaking before the house subcommittee, powell said recent price increases are bigger than expected but reiterated that they will likely wane. he acknowledged some uncertainty around the timing but said it is unlikely that the u.s. economy will suffer from 1970's style inflation. >> you will see that it tends to

be areas that are directly affected by the reopening. that is something we will go through over a period that will then be over and it should not leave much of a mark on the ongoing inflation process. >> the u.k. and the e.u. are said to be close to a truce in a brexit trade dispute over checks on goods moving into northern ireland. exports of chilled meets will be banned on june 30. the u.k. has asked the e.u. to extend the grace period. e.u. officials want to hear how the british government will use any extra time. sources tell us next steps will be discussed in a meeting on wednesday. the wait time for semiconductors has hit a record 18 weeks. research by the financial group shows that is up by seven days from the previous month. the gap is at the most since the firm began tracking data in 2017 and it is four weeks longer than the previous peak in 2018.

semiconductors that regulate the flow of electricity are a primary reason for the overall increase. 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: with the first trial under hong kong's national security law due to begin in a few hours, a 24-year-old man is set to face charges of terrorism stemming from an incident last year. the case will be closely watched for signs of how the government plans to handle the new law. let's get the details from stephen engle, who is outside hong kong's high court. hours before this is due to commence, we have recently heard about how this trial will be conducted. stephen: this is highly watched because it is the first one under the national security law which was promulgated nearly one year ago.

the alleged crimes of the person who will be standing trial under two main charges of the national security law, starting later today, at 10:30 here, in the high court. he has been charged with inciting secession as well as terrorism for allegedly riding his motorcycle into a police barricade, carrying a banner that calls for the liberation of hong kong. it is being watched very closely because the alleged crime was committed within 24 hours of the implementation of the national security law which, let's be frank, had very little public consultation before hand, so i'm not saying riding a motorcycle into a police barricade was legal before the national security law but the right to demonstrate with legal in the hours before the promulgation of that law so we are going to be looking at how

the judges, a panel of three judges -- there will not be a jury for this trial. there will be a panel of three national security judges in the high court that were appointed to handle such cases by the chief executive, carrie lam. we are going to see how they interpret both the basic law, the constitution here, as well as the national security law. and how the judge will interpret both of them because let's keep in mind, article 27 of the basic law says hong kong residents have the right of association, of assembly, and of demonstration. however, the national security law criminalizes terrorism and that's why we will be looking at this very closely. shery: how does this compare to the more high-profile situation? -- jimmy life situation? -- jimmy lai situation? stephen: he is in jail now,

serving a separate 20 month sentence for illegal assembly during the protest time. he also faces charges under the national security law. this will be the more high-profile case, we are assuming when or if it goes to trial. he is charged with or accused of requesting a foreign power to impose sanctions against the chinese government and the government of the hong kong sar as well as other collusion charges. that will be the high-profile one, given the impending closing down of the apple daily and the role that that newspaper serves in society as a voice for the pro-democracy camp which of course is on life-support here in hong kong. >> stephen engle covering that key story in hong kong. take a look ahead at the day ahead for australia now. australians trust in china has dropped to a record a while confidence in the u.s. hedge

risen. we will be speaking with natosha in a few moments with more details. in the meantime, new zealand has -- the virus cluster in sydney grows. we will also be getting the australian pmi's in less than half an hour. lots more ahead. this is bloomberg. ♪

>> australians trust in china has plunged new lows with more than six he percent of people saying they view the country as a security threat rather than economic partner. 16% say they trust beijing to act responsibly in the world. these are the most striking findings of the 17th annual polls. our guest joins us now. great to have you with us. we have been covering these for a number of years and the trend of growing distrust towards our biggest trading partner continues. were there any surprises in this new finding? natosha: -- >> there were quite a few. the biggest surprise was just seeing how far confidence in xi jinping has fallen. i was probably on your show last year, saying we hit rock bottom, and clearly, i was wrong, because australian sentiment has

gotten even worse. use of xi jinping are not that much above the way australians think of north korea's kim jong-un. only one in 10 australians have confidence in xi jinping. that is remarkable when you consider half the country had confidence in him in 2018, that recently. haidi: a couple of some details that jumped out at me. one is that there is the growing activity over the economic strength of china which previously i think would have been seen as a benefit for australia, and the other thing is is there much at attribution to canberra's role in this? natasha: you are absolutely right. it is still our largest trading partner. that economic relationship is still growing. this is a fascinating development. negative public opinion in australia i think has been responding to security issues,

foreign interference, to the crackdown in hong kong as well as to human rights abuses in recent years. what we have seen shift in the past year's after china has targeted australian industries with a campaign of economic coercion, australians have now seen the economic growth in a negative light so you can see that just a few years ago, made in china australia thought that china was more of an economic partner to australia and that is now a minority view and 63% of australians say that china is more of a security threat. the role of the australian government is a really interesting question. when you ask about the state of the bilateral relationship, the majority of australians say that australia is still to blame. when we asked australians about how they mark the coalition government to how they have handled a whole range of foreign policy issues, you can see that

they give high marks to the australian government for working on the economy for the way they have managed covid-19, the alliance with the united states. when you ask about the relationship with china, it is a much more mixed review and australians are a bit more 50 for. -- 50-50. shery: tell us about australians view on that alliance with the united states and what they think of the united dates itself right now. -- states itself right now. natasha: australian support for the alliance has tended to be consistent regardless of who is in the white house at any point. that continues to be the case. 78% of australians say that the alliance is important for australians security. what has really changed is that view of the leadership. australians have far more confidence in president joe biden than they did in president -- in his predecessor, so we can see 69% of australians have confidence in president biden and it was only 30% in president

trump. the other thing to note is that over recent years, trust in the united states has really flatlined and we can see that that has returned to an upward trajectory. 60% of australians say that they attract the united dates, it can point rise from last year. i will note, it's nowhere near pre-trump levels. 22 points below the level of trust australians had in the united states when president obama was in office. shery: this poll is really watched closely every year. is that because it eventually affects public policy, foreign policy as well? natasha: it is suddenly the longest standing tracking poll on foreign policy issues in australia. it is closely read in canberra. two things here. public opinion can drive the policy to some extent but it can also act as a constraint. if you were the australian

government, looking at china policy, seeing the widespread negativity in the australian community, you would have very few incentives to look for opportunities or ways in which to perhaps rebuild or stabilize the decline of the relationship. shery: thank you. natasha kassam there. it is time now for morning cause ahead of the asia trading day with sophie kamaruddin. sophie: with the reflation trade in focus, you have morgan stanley strategists saying it's not time to abandon the value trade just yet. a mining analyst is staying constructive, saying the sector is looking cheap even after a strong 18 months. capex recovery helping to lift global demand and speaking of a bounce back, over at bank of america, merrill lynch, predicting the korean won will rally further with the current account seen as the primary driver with portfolios studying

as well as a strong trade surplus holding up. that greenback firming on rising real rates. still predicting stronger korean won at the end of the year. stronger than their march forecast, haidi. haidi: sophie kamaruddin in hong kong. coming up, six of the world's key financial centers are struggling to kickstart that return to the office. roughly 15 months after the long dance began. we take a look at the latest. this is bloomberg. ♪

>> penetration of vaccines around the world is going to take time. it may not be until the end of next year before we get enough penetration broadly to accept vaccines have a meaningful impact on intercontinental traffic. >> business travel will certainly come back because businessman like to face people, they like to have -- to notice the body language. people don't like justice in front of the screen and conduct business. i'm confident that business travel and occupancy will rise rapidly once the pandemic is under control. haidi: airline executives

talking to bloomberg at the economic forum. 15 months after the lockdowns began, six of the world's key financial centers are struggling to kickstart a return to the office from new york to hong kong. the companies who are working to get staff back to their desks. ritika gupta takes a look at how that return to office is going. >> still 50% locally pandemic levels and that is according to google data tracking the location of its users. whether schools are reopening, transport reopening, a lot of factors to bear in mind but if we look at the two lowest vaccinated cities on our list, they are frankfurt and hong kong. frankfurt, we know the story here. the e.u. had a slow rollout of those vaccines. 25% of the german population is

fully vaccinated. in hong kong, we have the opposite problem. the majority of workers are actually at their desks but the question is how long they are going to actually be able to stay there for. that will depend on the government being able to persuade workers to take the vaccine. there is a lot of mistrust and the government here despite the vaccine being so readily available. it is interesting that daily covid cases, hovering around the zero level in hong kong, yet it is the lowest vaccinated city within our list. finally, let's take a look at new york because we have those mayoral elections that kicked off today. you would expect we had a lot of restrictions that would pave the way for workers to get back to their desk. we did have the likes of goldman sachs, j.p. morgan, having ambitious plans. the commercial real estate market is telling you a different story, according to data. office vacancies, 62% above pre-pandemic levels. that is above the financial

crisis and the 9/11 terror attacks. these financial hubs want to get people back into the cities. they want it for the local economy as well but it will not be such an easy ride. shery: we heard in the last hour or so that morgan stanley will be barring on vaccinated people according to the financial times so we are seeing more companies wanting to bring people back safely. what is really interesting is manhattan feels like it is coming back and restaurants are full, bars are full, but midtown manhattan, not so much. haidi: maybe people are hanging onto their work from home flexibility and we have seen in terms of wall street, there's been so many different approaches. we heard a similar approach for blackrock. we know that bank of america, when it starts ringing people back, it is prioritizing vaccinated workers. in australia, 3.5% of the

broader population is even fully vaccinated so something like that would not be working. we have not even managed to get all of the front-line workers vaccinated. there has been no mandate and that has been a big part of the criticism. >> in new york, we have high vaccination rates but it's interesting how we are not seeing that anymore so the mta, pretty empty as well. 50% monthly average ridership compared to pre-pandemic levels but of course, we continue to watch this work from home and return to the office story. let's get a quick check of the latest business flash headlines. hsbc now saying that it's hong kong customers can continue to access online and mobile banking services outside the city. the lender issuing a statement after its updated turn cost concerns among customers with one journalist tweeting that regulations are preventing casco from hong kong. -- cash flow from hong kong. they have no plans to amend any of its services.

evergrande downgraded into junk territory as fears about the company's financial health grow. it's bonds slumped among reports that several tiny banks are restricting credit to the firm. evergrande insists its relationships with banks and financial firms are normal. a trucking startup jumped in its trading debut in one of this year's biggest u.s. listings by a chinese company. shares of the softbank and tencent back company closed at $21.50. the company operates an uber like app that connects merchants who need their goods shipped. -- shipped with truck drivers. coming up, our interview with a ceo. that is it for "daybreak australia." "daybreak asia" his next. this is bloomberg. ♪

>> a very good morning. welcome to "daybreak asia." i am haidi stroud-watts in sydney. sophie: i am sophie kamaruddin in hong kong. shery: good evening from bloomberg's world headquarters in new york. asian stocks set for a steady start after the fed chair reiterates stance on inflation being transitory. jay powell says the jump in prices is