>> good morning and welcome to daybreak australia. >> in hong kong, we are talking about the asia's market open. >> the top hours this -- the top stories this hour. the dallas fed president robert kaplan says that tapering can

happen sooner than expected, with a rate hike next year. >> the white house gets set to take beijing to task on alleged human rights abuses. the u.s. will buy some solar products made in a china region. >> new zealand's high restrictions after a swing in tourist -- as an australian tourist test positive. we are seeing u.s. futures muted after the s&p 500 lost ground. we had a fading after the atlanta feds presidents,'s today. retail shares gaining ground and outperforming. energy another outperforming. oil right now really seeing those gains in the asian session. this as we are now seeing wti kind of very close to overbought territory in the 14 day rsi. the bloomberg index study. really, haidi, it has been about

what strategy could work when it comes to investing in this very volatile environment, when you do not know where inflation is going? and interestingly, that 60-40 investment mix of performing at a record high, despite the fact we have not seen those big movements as of yet, both in the equity or bond markets. haidi: they keep calling it the death of the 60-40 portfolio. the other thing i found really interesting is the point that was made by the chief investment strategist at charles schwab. there has been so must focus on -- much focus -- with much stimulus, the kitchen sink. there seems to be an assumption that the pullback will be just as quick. all that stimulus came in quickly but the withdrawal of that support is going to be much more gradual. we're speaking to marc matthews later on. the fed doesn't know what is

going to happen. their guesses the most educated of all the ones being put out there. let's take a look at how this is digging into the asian session this thursday. >> as they consider the fed's timetable and the dollars went of strength will be with us for the coming weeks. we are seeing the prospect of a wider diversions playing out in the dollar-yen, which is testing 1.11 yet again. which we have not seen since 2017. with the boj expected to standpat, while other g7 banks are seeing tightening. as the case we saw last wednesday after the -- hit a fresh high. shery: atlanta fed president raphael bostic moving its first expected rate hike up to 2022.

let's bring in kathleen hays. why is raphael bostic ready to start policy moves sooner than expected? kathleen: he was on a call with reporters, obviously had time to thought to choose his words very carefully but, yes, the first rate hike in late 2022. he sees two rate hikes in 2023. let's look at the dots to give us perspective on what we are talking about. because at the end of the fed's last meeting they came out with their new forecast for rate hi kes. what they did that was surprise a lot of people is instead of keeping all of the rate hikes off to 2024, suddenly the consent is is looking to 2023. 11 were looking for two hikes in 2022. the number of people working for the first rate hike move from four to seven. raphael bostic did just that. he shifted his rate hike given up -- he said, it looks like the

economy is well on its way to recovery from the pandemic. very interesting. on this call, he said if jobs growth is strong, if it is healthy in the next three to four months, it will be appropriate, he said, to start planning the taper. that could start tapering by the end of the year. he said the economy as well on its way to making headway towards further progress on maximum employment. etc. very importantly, let's read what he said. "in my view, we are close to meeting that standard. i think we will reach that standard given this is a distinct possibility, it is appropriate to be planning to start the taper process." fed officials have said, of course, we are not going to start raising rates before we start tapering. taper by the end of the year. you are ready to hike rates in 2022.

consensus is not there, but important moves have been made. haidi: the dallas fed president giving strong indication for a rate lift often 2022. kathleen: what is the biggest risk? is the risk is the biggest risk you move to is slow and not taper quick enough? no the risk is you do not move fast enough. you have not let -- to get there and not let inflation get out of control and not create financial instability. he said, echoing jay powell, the fed chair last week, that the fed has all of this volatile data and trying to gauge a post-pandemic economy. it can't compared to anything we experienced before. requires a healthy dose of humility. kaplan has been one of the fed officials out front on this. in september of 2020, he dissented on the fed's decision

when they were adopting their average framework for targeting inflation to get it above 2%. he didn't want the fed to lock into something that was too strict. shery: kathleen hays, our global economics and policy editor, putting everything in perspective. our next guest says that this time around any taper tantrum would be less of a risk, compared to the taper tantrum's of in 2016. we're joined by a partner at brandon's investments. why is this? why is this time different? >> shery, thanks for having me. i think you need to look at the starting point. i think if you look at the taper tantrum's of 2013 in 2016, the current -- for the fragile five were much worse. but today when you look at the bond yields of some of the riskier countries in latin america, africa, they are already at 9%, for brazil and

south africa. we're coming at a point where risk assets in these areas are pricing in high yields. so, i think this time around the taper tantrum would not be as bad on some of the more fragile economies. shery: what about the fact we may be seeing some downside and commodities, especially in the commodities rally that has helped emerging markets. now showing how lumbar futures, which at one point we were talking about that huge rally we saw, is really fading away. will that hurt those markets? >> yeah. that is something we have been saying in the last couple months, which is commodity prices have gotten ahead of themselves. and, if you look at where share prices are and commodity prices compared to the marginal cost of production, historical probabilities, they are at all-time highs. i think going forward, the value rotation cycle is going to shift more from commodities to, for example, to the banks and financials and things that are

more interest-rate sensitive. so, i think we would be actually thinking of buying companies and consumer staples and home appliancest that are hurt by higher commodity prices. so we will be buying those and not buying more commodities. haidi: which emerging markets are your most constructive on an hour you less concerned about the taper tantrum this time around? >> we're still constructive on china. there is a long structure of growth. the aging demographics. i think southeast asia is making interesting come back. if you look at the last week, international has been rallying. philippines has been rallying -- indonesia has been rallying. the covid recovery is broadening out to other southeast asian markets. you see the more positive reaction mexico after the midterm elections. so, i think it's definitely spreading beyond the traditional safer places in north asia.

haidi: it is interesting. one of your remarks is that localization and the lack of labor and in some cases even investment is inflationary. how does that play out when it comes to opportunities in the chinese markets? louis: yes, i think the last time when i was on the program, we talked about inflation being transitory. i think we disagree. because there actually a lot of long-term structural factors, such as the separation of supply chains, the duplication of supply chains that's going to be largely inflationary. and the whole posture by the biden, the interest plan, that is largely inflationary as well. -- the infrastructure plan, that is largely inflationary as well. the pti will be much more pronounced. in the chinese market, we would not really be looking for inflation plays, because the

banks are not as rate sensitive -- so, i think we will be looking at health care in the longer-term, sutter structural play on the aging demograph ics. pharmaceuticals. hospital operators. shery: what about education? we are seeing a lot of money flow there. take a listen. >> too much of a good thing cannot be good. simple. when these online education companies start spending money like crazy -- there is always money behind them, i do not think it is sustainable. shery: super quickly, what do you think of the education interesting in china? louis: i think you have to slit the education industry into two. the one of the right-sided policy is higher education. you do need more college education.l

the part we need to be cautious on is the afterschool children, because that flies against policy -- in terms of trying to alleviate the parents' burden. but we like higher education. haidi: always great to have you with us. let's get you over to vonnie quinn in new york with the first word headlines. vonnie: sources say the u.s. is set to ban some solar products over suspected human rights abuses. the move was announced thursday would mark the biden administration's biggest action yet against beijing's alleged -- on minorities. key materials for solar panels and semiconductors. hong kong's apple daily has published its last print edition. the city's only pro-democracy

news bar shut down after it was unable to operate following the arrest of top executives under national security laws. the paper was joined by -activists- was owned by jim ely who is facing a national security charge of colluding. the u.s. supreme court has rejected a part of a lawsuit against the federal housing ag ency. the court has dismissed claims that the agency exceeded its authority and collecting profits from the government-sponsored firms. fannie and freddie both lost the most in today's trading since 2014. warren buffett resigned as a trustee of the bill and melinda gates foundation. buffett was one of three trustees of the foundation along with bill and melinda gates. the 90-year-old has contributed $33 billion of his own money to the charity over the past 15 years.

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. shery: one airline is set to emerge stronger than ever. later we break down how qantas has managed to outshine his peers. an associate capital executive has bet that tension between washington and beijing will be a boon for chinese tech. that interview just ahead. this is bloomberg. ♪

haidi: the u.s. is set to bar some solar products in china. over alleged human rights abuses. let's speak to emily wilkinson

washington. what have you learned? emily: so, at this point, we know that the u.s. is planning on banning certain materials that deal with solar. if those materials were manufactured in the shins saying shin jen p rovince. it is related to those concerns about forced labor in american products. this has been a concern that has been raised before. this is one of the concrete steps that has been taken. in fact, u.s. climate envoy john kerry believes that some of these products are made by forced labor. to a certain extent, this is expected and we are planning on seeing the white house come out and announce this tomorrow. shery: how consequential would

this be for the overall industry? emily: it definitely would have an impact on the solar industry. the solar industry, solar energy industries association says they built a tool recently helping to track manufacturers, making sure the materials they use are not coming from forced labor. solar -- has gone through a period of increasing cost. that can to lay energy, insulation, and prices have surged. being cut off from some of the supply could have an impact on industry as a whole and pricing for solar energy panels and other devices. shery: emily wilkins there in washington. the political tension between washington and beijing may be a boon for chinese tech, according to a head estate back private equity firm. the ceo thinks the tech disputes

will not ease any time soon. it gives domestic players plenty of room to grow at home. he gave me his to mystic outlook. -- his domestic outlook. >> particular east asia. and we see a lot of opportunities as china emerged from the pandemic first. so, many factors such as health care, technology, and consumption are the major focus for most of the equity investors. >> yet, we are seeing some signs of weakness across china. such is the clampdown on certain sectors of the economy, perhaps some liquidity tightening as well. how does this impact your investment outlook when you are trying to decide where you can

find opportunities? >> well, for, for equity investors, too much liquidity may not be a good thing. the fact that -- they are taking proactive initiatives in curtailing the flood of liquidity around the world and, as sort of a preemptive measure, i think it bodes well for the long-term potential of the chinese economy. and, for the crackdown, some of the anti-competitive practices, which will surely -- resonate in the internet sector. for a while, the government was happy to see the sector grow. but now decide it is time to curtailing some of the, you

know, the anti-competitive monopolists, the capital behavior. i think all of that in a year when you already see the chinese economy growing 18.3% in the first quarter. it's actually a good thing -- doesn't want the economy to overheat. this may be the time to actually take care of some longer-term issues during the crackdown. shery: another great guest coming up later today. joining bloomberg exclusively in just a few hours' time. after holding rates unchanged. this is bloomberg. ♪

>> let's take a look at the day ahead for australia. we are watching the fallout -- that could force facebook and google to remove harmful content within 24 hours. one industry group backed by tes la is estimated that australia's economy could add billions -- we're also watching the latest on the tensions with beijing. a serbian diplomat describing china as being dogged by insecurity. she says the nation is undergoing a steep -- influence. we will watch for any retaliatory actions from beijing. here in sydney, we are on the brink of going into a lockdown to contain a rash of an outbreak

of covid-19. the cases are doubling to nearly 31 on wednesday. paul, how likely are tougher restrictions now in sydney? paul: the premier keeping things open for now, which is welcomed by the business community but she did say in the press conference she will not hesitate to go harder and further if we have to. that does suggest if we get another big spike in cases a lock down could be in the cards. so, it's pretty clear that this delta variant does continue to spread. we've got restrictions back for indoor gatherings on public transport and a whole slew of other restrictions as well. seven local governments including the city of sydney have been told you're not allowed to leave town. and a number of states have shut their borders. if this sounds like an overreaction to 31 cases, it's

worth remembering that this is the must more -- much more infectious delta variant. there was one case of a person passing it on to another by walking past them in a mall. another big spike today could see some harsher measures introduced. shery: what is the risk of this outbreak having already spread to new zealand? paul: that is a concern. new zealand is on edge at the moment, because the story emerged that a traveler from sydney went to wellington last thursday and return to sydney on monday and then tested positive. while that person was in wellington, visited a number of well populated venues, including the museum of new zealand where there was an exhibition attended by 1000 people, as well as availing themselves of all of the bars and eateries at wellington. on the top side, that person had been partially vaccinated with astrazeneca. so, maybe less infection than usual -- less infectious than

usual. the close contacts have tested negative. the bubble between new zealand and must really has been's. -- has been paused. we will have to see how this evolves. shery: really coming a time when new york is just coming out of quarantine. we're going back to normal. new york city now saying that they are going to start offering free vaccinations at home to people who wanted. haidi: that is incredible. i was just talking to one of our regular guests visiting new york for the first time from across the other side of the country. nothing has really changed. here in sydney, we did such a good job in australia during the pandemic. and now it feels like we are paying the price for the vaccine rollout not happening quickly enough. just 30 cases, essentially things come to a standstill. shery: what a big difference a year makes. coming up next, a big name that is not a fan of

cryptocurrencies. larry fink says that digital assets is not terribly important. that exclusive conversation ahead. this is bloomberg. ♪

>> the u.s. economy is really on fire. >> developed markets are further ahead. >> the second half of the year where the economy is running really hot. >> i think that prices are going up. >> that will have spill over into the global economy. >> i don't think it is anything to be alarmed about at this point. >> the chances are higher that this is ongoing inflation and the fed will need to adjust. >> this is a transitory

phenomenon. >> i am concerned about inflation overshooting for more and buy longer. >> if you see breakeven inflation rates go above 3%, then you have the dilemma of the tightening of the monetary policy. >> some of the top views on price gains from guests at the qatar economic forum. bitcoin has been touted as a possible inflation hedge. institutional investors are turning away from it. among them, blackrock's chairman and ceo, who spoke to us at the qatar economic forum, powered by bloomberg. >> long-term investors are very focused on the tiktok of the market and the ups and downs of crypto. it is fascinating to watch crypto because it is inspiring a lot of young investors. i think that is fantastic. that inspiration leads to long-term investing, that is a

great outcome. but with our focus on long-term investing and with two thirds of the assets we manage for pension funds, the conversation about crypto is a miner percent of any dialogue we have with any company worldwide. it's not terribly important. could crypto become a really important asset class one day? sure, but right now, the volatility, it has not led to widespread conversations worldwide. conversations i have with governments and leaders is about should there be a digital currency, true digital governmental currency and that will change finance in a very substantial way. if there was a digital dollar, a true digital yuan, that will change -- that would be much more impactful than any other

like a crypto. but it is something we look at, some of our investors use as one tool for investing, but it is really about the tick tock of the market and that is what public media does, you focus on the ups and downs. blackrock is focused on building long-term portfolios for our clients. if we deem crypto or any asset in the world, it's a great long-term assets on behalf of pensioners worldwide or people building pensions. it will be one of the tools for asset composition but the tick tock of the market, the ups and downs in any one individual stock, it is really unimportant. >> that was larry fink, speaking at the qatar economic forum. shery, you can say what you like about bitcoin, that it is

volatile, speculative, that it is the future, but the scariest thing you can say to bitcoin aficionados is that it is not relevant, not as important as we are making it out to be. ouch. i feel like that is a burn but it's true. we see the pullback of speculative interests. clearly, a lot of these dictators are going back to work, into the office, and the interest has receded and i cannot help but think, six months ago, we were like it coin is a big, hot thing. was this always -- bitcoin is a big, hot thing. was this always inevitable? shery: the sellers are firmly in control when you go below that 40,000 level. we have talked about the death cross as well, below the 200 and moving average. bloomberg analysts on our mliv blog saying there have been seven cases where you saw the death cross signals since 2010 and bitcoin returned more than 30% over the next 50 days on average so we are watching that,

haiti. haidi: it feels like with falling prices, it has taken the wind out of the phone mode trade and we have been talking to joanna also injured -- ossinger. we could be looking at 20,000 as the next barrier. morning calls with sophie kamaruddin. taking a look at the dividend play. sophie: that is right. at goldman, strategists seeing transitions so they are expecting upside surprises for global dividends. that is the call from goldman sachs given the implied growth is conservative in most markets, especially after next year. higher payout ratios is just one driver for dividends, which have lagged while share prices have recovered. pulling up the chart on the terminal, analysts have been boosting dividend bets for australian miners as well. morgan stanley expects bhp and rio tinto to deliver payouts that beat consensus estimates this year and citi anticipating

better dividends from aussie miners, which have been holding back on. balance sheets continued to improve. jerry. shery: -- shery. shery: let's turn to hong kong. the pro-democracy newspaper of jimmy lai, said to have published its last edition this morning. the freezing of its assets hindered its ability to survive. for the latest, let's bring in stephen engle in hong kong. is that it then for the apple daily? stephen: looks like it and people good turnout in the rain in hong kong this morning as the press stopped at midnight and the last circulation of up to one million copies have been distributed in the early hours of this morning. normally, the daily circulation is 86,000 so they have printed one million including this one right here. we have gone to video now but you can see the front page right here of the apple daily

newspaper. it is a photo of their headquarters and people lining up outside in the wee hours of the morning to get a copy of this newspaper like this that basically says hong kong came out in the rain to say their painful goodbyes. as i drove into work this morning, i do drive past the headquarters. i did see at least one person carrying a stack of newspapers under his arm across street in front of me. this is a very polarizing issue and we are not here to glorify the apple daily or laud its achievements were anything like that because if you ask any two people in hong kong their opinions on the apple daily, they will have very different opinions. it is a polarizing publication. over 26 years, apple daily has been a torn in the side of beijing, on urging the hidden wealth of the legend -- hidden wealth of communist party

authorities and it delves deep into the traditional tabloid fare, going into racy coverage of entertainment, crime, and celebrity gossip. there is a love/hate relationship. they don't like necessarily the tabloid style but they also respect this newspaper for basically challenging authority. that is why this is a polarizing issue. the newspaper has had financial trouble since its assets were frozen after the arrest of course its founder, jimmy lai, the billionaire media tycoon who is spending 20 months in jail under charges -- you know, he has been convicted of illegal assembly. he also faces charges of collusion and trying to incite sanctions against the chinese and hong kong government from a foreign power. that under the national security law. he will face those charges and perhaps a day in court coming down the pike after we had the first trial began under the national security law. a lot of this is under attention

but the apple daily closing after 26 years because of financial issues but also for the safety of its employees. >> what is in store for the jailed leaders of the apple daily? stephen: they are going to be put in the queue for potential trial because you have the apple daily editor-in-chief, the editorial side of the newspaper, but you also had the publisher and the ceo of next tactical -- next digital. they have been arrested and denied bail under the national security law on collusion charges. we had yesterday as well the 55-year-old opinion columnist, longtime opinion columnist. on the editorial side of the business, not necessarily on the business side, he was arrested, and that might have been the final straw because we are hearing that police sources have told bloomberg news that further arrests could happen. we started over the last week, after this footage of the five executive editors being

arrested, the employees started really getting worried, and many of them resigned, and they were down to a skeleton staff in the last couple of days so they did not have the manpower to produce the paper and they did not feel that it was necessarily safe for the remaining journalists who stayed on in the last days of this newspaper so it looks as though even though the newspaper announced it would be closing on saturday, it looks as though this last midnight ron was the last one for apple daily. >> historic day in so many ways. blackstone head stephen schwarzman sees an avalanche of opportunities from the u.s. tax hike. this is bloomberg. ♪

shery: you are watching "daybreak australia." i am vonnie quinn. federal reserve officials say the central bank could start tightening sooner than expected. raphael bostic says the strong u.s. recovery means it might be appropriate to start slowing asset purchases in the next few months. he also favors listing rates in 2022. robert kaplan is all -- also forecasting 2022 and believes the u.s. economy will meet the rush holt for tapering sooner than most believe.

say u.s. lawsuit has accused china's -- of indirectly supporting an iranian terrorist campaign. the federal suit saying -- even though it knew the transactions would help finance, arm, and support iran's terrorist activities in iraq. a wireless carrier wasn't named as a defendant in the suit. john mcafee has been found dead in a spanish prison cell shortly after it was announced he would be extradited to the united states and face charges of financial crimes. the creator of the software had been jailed in spain since october on u.s. tax evasion charges, owing more than $4 million to the irs. a spanish newspaper reported here. to have died by suicide. japan's supreme court ruled that

married couples must share the same family name, rejecting a challenge to a 19th-century family registration system. three couples argued the inability to use separate surnames was a breach of their right to equality under the constitution. in its ruling, the court said the matter of shared family names should be debated by lawmakers in parliament. 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: blackstone's ceo says the risk of an increase in u.s. capital gains taxes has led to an explosive growth when it comes to potential target for his alternative investment firm. corporate owners look to cash in ahead of legislative changes. the head of qatar's sovereign wealth fund discussed investment opportunities at the qatar economic forum. >> we have been through these periods of higher multiples and

it leads to a certain type of caution, but it also presents a lot more opportunities because prices are higher. more people will sell. what we have learned is that because we are fundamentally in the private markets, is that the only reason to buy something is to make it much better. we are in the business of accelerating growth of companies and real estate. that we own. it is unlike stock investing where you buy it and hope it works out. we are change agents. if we can put more money to grow business is, we can deal with some of the issues of higher prices by accelerating growth, which gives us more protection on the downside. with the prospect of the united

states potentially increasing capital gains taxes very significantly, it is really like an avalanche now of opportunities if people want to sell things before their taxes are much higher for selling the same thing potentially next year. so it is giving us a lot of opportunities and what we have to do is be careful. they very exciting plan for growth. that results in as hiring more people, so this is good for society and hopefully, it is good for our clients who typically are at large institutions like qia. >> how far along is the qia, trying to diversify its portfolio? you tried to boost investments in technology and health care. is that done to a level you are satisfied with now?

stephen -- >> not yet. we have been focusing on technology and health care. within the last two years, we have deployed technologies more than ever before. i think the sector is promising, especially if you are targeting a certain segment within technologies and i think it is the sector that, you know, has grown to tuesday. i don't think so there is a risk. perhaps in the short-term even though i am not really concerned about it. i think it would be a temporary basis. but as you know, it is the year of technologies and a portfolio without a huge component of technology is a balanced portfolio. shery: stephen schwarzman and

the qatar investment authority ceo, speaking at the qatar economic forum. the minister of commerce and industry investment promotion agency are underwriters of the forum, powered by bloomberg. coming up, with economies reopening and airlines resuming flight, qantas is ways to emerge stronger than it has ever been. we will tell you why. this is bloomberg. ♪

>> here's a quick check of the latest business flash headlines. world's biggest maker of bitcoin mining rigs is a suspending sales of machines for spot delivery globally to prop up prices. it says it stopped selling new equipment after top-tier prices plunged by 75% since april. china's crackdown on crypto mining is causing more and more miners to abandon their operations and dump machines on the market. the face of reliance industries planned $15 billion deal with sorrento will be the focus when the chairman addresses shareholders on thursday. investors will be watching out for details on the 5g rollout, if possible listing of its digital unit, and a cheaper

smart phone that is being developed by google. for the second year in a row, the annual shareholder event will be virtual. tesla motors ceo will step down at the end of this month. he will continue as a consultant until the end of this financial year. they earlier this year announced a former daimler executive as the next ceo but then reversed the decision without disclosing reasons. haidi: qantas is poised to emerge stronger from the pandemic. a loss in holiday traffic. let's get more from our asia business reporter, angus. we know qantas has done better than a lot of its regional peers because of the recovery and the strong domestic market but this keeps happening every time there is an outbreak. >> that is right. you are right to point out the

current challenges qantas faces with the latest outbreak on restrictions in travel. i have looked at qantas's performance right from the start and where it is projected to come out of this crisis in years time and this is a story of how one airline has used this crisis to turn itself into one of the strongest carriers in the world and its market share has climbed as high as 74% at the end of last year and haidi, it has this captive domestic market which is really propelling its earnings at home. we are not allowed to leave an international tourists are not allowed to come in so it has a great hunting ground in its own backyard. >> what happens with the rising infections in australia?

angus: we have seen this before. we saw it last year in melbourne. a lockdown of 100 days or more. we saw sporadic lockdowns and so far, they have proved to be temporary. australia has fewer than 150 active cases. they lost fewer than 1000 lives so if you take history as an indicator, these things have not prevented qantas from capping a huge opportunity in its home market. it has one international corridor with new zealand but there's still enormous pent-up demand for domestic travel. air travel is expected to be larger than before the crisis in the next 12 months and that's because people are desperate to travel and they cannot go

overseas. haidi: we were looking at flights for october to queensland and we were having trouble finding some already but in terms of the international reopening plans, how is the airline preparing for the return of international travel? there's been lots of talk about vaccine passports. angus: that's probably one of the challenges qantas faces. it is void of international competition in its home market and its closest rival here is weaker than it used to be. when the board to do open, it will have to fight with all the other guys as well. as you say, haidi. that said, a lot of the other carriers are more burdened with debt than they were before the crisis. qantas is a better place than many of the big names, including the major u.s. carriers.

>> -- the latest on qantas in sydney. we will get more on the tourism sector when we speak with the ceo of hong kong hotels about the outlook for their business. you don't want to miss out on that conversation, shery. shery: take a look at the markets right now because we are seeing stocks getting ground for a third session, but this of course as we see the kiwi currency, the aussie currency as well under pressure today, given that of course we are seeing virus restrictions, a resurgence of the virus, a looming lockdown in australia so aussie futures down .4%.

when it comes to the japanese equity markets, we could see a little bit of upside as the japanese is holding at around the weakest level in more than a year against the dollar. the lowest level since march 2020. at one point, it fell past that 111 per dollar market. holding close to those levels. this as we continue to see the rate divergence expectations here from the fed and the boj as well. when it comes to the class b futures, up .6% after gaining for two consecutive sessions. the korean won did lead the declines among asian fx in yesterday's sessions and we are awaiting that extra budget proposal that the finance minister says could top $26 billion, but really, overall, with hawkish turn from the fed, broad pressure for asian currencies at the moment. coming up in the next hour, we hear from research affiliates about why she is rebalancing her

exposure outside of the u.s. that is it for "daybreak australia." "daybreak asia" his next. -- is next. this is bloomberg. ♪ (announcer) back pain hurts,

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> hello. welcome to "daybreak asia." i am haidi stroud-watts in sydney. sophie: i am sophie kamaruddin in hong kong. shery: good evening. i am shery ahn. our top stories this hour. more hawkish messages from the fed. asian stocks set to dip after raphael bostic forecast a rate hike next year and said tapering could happen sooner than expected.