> 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.

the biden administration is set to punish china for alleged human rights abuses. sources saying the u.s. will ban some solar products made in xinjiang and u.s. banks could be set to unleash billions of dollars in dividends and share buybacks with results from the feds stress test due later thursday. haidi: sophie kamaruddin is in hong kong. sophie. sophie: asian stocks may falter after the two day again. we are seeing nikkei futures moved to the downside and kiwi stocks slightly higher for a third session. u.s. menus edging higher after the mixed session we saw on wall street. the nasdaq clenched another record high while the s&p 500 slipped and checking in on currencies, we did see the dollar hit a speed bump, seeing the yen recover some losses but it is the 111 handle. this bond policy divergence

between the boj and other g7 banks and goldman seeing more dollar strength in the near term. currencies are penciling in 640 and three months. the fed shift has arguably truncated the risk of a sharp dollar depreciation driven by high inflation and very low real rates. we have seen the dollar strength coming up late given dollar bears are heading to the exit. sticking to its long-term call for dollar weakness. g10 and em currencies. goldman recommended the fed to prevent was probably going to far. shery: breaking news. we are hearing that california is saying that the recall election of governor gavin newsom will go ahead. this is finally official. it was widely expected. the announcement is now coming from the secretary of state, certifying that petitioners collected enough signatures to trigger the selection. gavin newsom faced scrutiny for

his lockdown efforts to control the coronavirus pandemic and he was criticized for dining at a luxury restaurant mask list while telling californians to avoid social interactions. this would only be the second time in california's history that we are now seeing a campaign to recall the governor and back in 2003, gray davis was removed and replaced by arnold schwarzenegger. let's turn back to the fed. another official now joining the ranks of hawkish pivot fomc members with atlanta fed president raphael bostic moving his first expected rate hike up to 2022. let's bring in kathleen hays. a faster rate hike taper is bond purchases sooner as well what is he talking about? kathleen: a stronger economy. everybody has to think harder about the fed is saying and thinking. let's bring up our dot plot as i

tell you what raphael bostic said when he spoke with reporters earlier today. he is moving his forecast for the first rate hike up to 2022. there's seven dots, looking for that, until this last meeting, there was only four. 2020 three, he is in the camp. 11 out of 18 fomc members see two hikes in 2023 and there is a total of 13, looking for one hike. raphael bostic has put himself in that more hawkish camp. why? given the upside surprise in recent data points, he is seeing a stronger u.s. economy coming out of the pandemic area in fact, he said, when it comes to the taper, if jobs growth remains strong for the next three months to four months, it's going to be appropriate to start planning the taper so he gave us some very important information today that we did not know before he had this talk. >> there some concerns about government prematurely declaring the end of the pandemic.

does bostick think that the economy is out of the woods? kathleen: a lot of information is saying the u.s. economy is heading in that direction. he said it's well on its way to recovering from the pandemic. he expects gdp up 7%. don't you think that shows a lot of strength? inflation up 3.4% year-over-year this year and 2.4% in 2022, well above the target, for two years. he went on to say, in my view, we are close to meeting the standard of needing to see substantial further processed towards maximum employment, inflation above 2%, and in fact, if we see levels comparable to this like in the few months ahead, he feels we will have reached the standard. it's fully appropriate to be planning to start the tapering process so it is a pretty definite and powerful statement here as well from raphael bostic. >> and not surprising, another endorsement of that liftoff in 2022 kathleen: which he has had on

the table for a while. he continues to give his reasoning. when it comes to the tapering, he says we are going to lose flexibility if we wait too long to taper. it is a question of risk management. he has been worried about financial instability for a while so he also says it is important for the fed to have this sense of humility and it is hard to forecast an economy that is coming out of its first pandemic and 100 years. for investors, what is important to realize, for that kind of statement which jay powell made last week as well. the fed is not writing in stone. what they are saying very clearly is we are watching the data. based on what we see now, and where we think it is heading, that is what we are going to be. big change in the economy could change any of that. shery: kathleen hays, thank you so much for breaking that down for us. as we continue to see this stance within the fomc, our next guest is rebalancing outside of the u.s. towards europe and

emerging markets. we are joined by the head of equities at research affiliates. great to have you back. why do you like these other markets more than you do the u.s.? >> from the investment perspective, we have to admit there is a very strong diversification benefit. from the valuation level perspective, u.s. market is priced richer than the rest of the world, the ratio above 37 would indicate over the long horizon that the u.s. market investors will receive slightly active return above inflation year after year. when we look at the rest of the world, especially emerging markets, we still expect pretty awesome real return, five percentage points for a long-term investor. >> is this also met cyclical play in european markets as we see the reopening?

this gtv chart obloomberg, when it comes to this u.s. market, if you take a look under the hood, we saw the cyclical defense ratio start to trend down with value stocks taking a hit with this post fomc hawkish turn. feifei: i think it is related. if we talk about cyclical sectors and cyclical countries, we can see commodities certainly can benefit from the global reopening, economic recovery, and the emerging markets are net exporters of commodities so that is highly related and also even though there is a recent retreat, i think it is more like noise in the short-term. over the long run, we are positive on cyclical sectors such as energy, financials, industrial materials. they can truly benefit from the economic reopening and they are priced at very attractive levels even after the recent price. haidi: how much of a headwind is

a stronger u.s. dollar going to be? it was an aggressive reaction we saw and was it a one-off? feifei: the u.s. dollar will weaken further in the future months to come. given the substantial increase in u.s. trade and the budget deficits, the recent upward move for the dollar, like you said, is a very strong reaction to the feds more hawkish stance towards rates. partially, it is corresponding to the very strong economic growth in the data due to the rapid vaccine deployment. however, i think the economic growth of the different countries in the region largely depend on their ability to contain covid at this moment so we see growth peak occurring in china first and then the u.s. will peak in the next corridor to the u.k. and the rest of europe, emerging market will catch up in 2022.

on the world is basically taking a more uniform pace of growth, there is not further good news. haidi: earlier, we spoke with stephen schwarzman and he was talking about the opportunities he has been seeing coming out of the anticipation of the capital gains tax. take a listen. >> it is really like an avalanche of opportunities. people want to sell things before their taxes are much higher for selling the same thing potential next year. and so, it's giving us a lot of opportunities and what we have to do is be careful. always a very exciting plan for growth. haidi: are you fearful at all about potential tax hikes? do you see opportunities or are you agnostic about the overall impact? feifei: i am more comfortable about the tech hike at the

corporate level. there will be a certain erosion for earnings. on the other hand, they will make modest changes because they do understand the government deficit needs to be covered by sustainable and strong economic growth rather than just taking money away from existing business so even though the tax rate is bad news, the magnitude is fairly modest. on the other hand, i think that potential change in the capital gains tax will take a lot of attention, given the recent structural change in the market participation. we know retail investors used to be only civil ditches -- single digits pre-pandemic and now it's one third of the market. the short-term stock price movement moved in a very different way versus the traditional institutional investors so i think that is something we should at least stay vigilant about. haidi: you are looking at the

impact of the dollar as well as ongoing commodities strength. which ems in asia look appealing? feifei: emerging markets asia, especially the countries which are doing a pretty good job in terms of containing the virus, reining in inflation. china, south korea, singapore, and also, you know, taiwan. south korea. those countries are actually pretty good in terms of semiconductors, given the global shortage of chips. i think i can certainly benefit from the strong demand. haidi: feifei li, always good to have you with us. still ahead on "daybreak asia," we hear from one of southeast asia's biggest conglomerates about sustainable development in the post-covid era. you can get our exclusive interview later this hour. bloomberg sources say washington

is poised to ban some products made in xinjiang, marking one of the biggest steps yet to counter alleged human rights abuses. we have the details from beijing, next. this is bloomberg. ♪

vonnie: this is "daybreak asia." i am vonnie quinn. u.s. supreme court rejected a core part of the lawsuit against the federal housing finance agency brought by investors and fannie mae and freddie mac. the justices rejected claims they exceeded the federal authority and collected more than $100 billion in profits from the government vaunted enterprises. they sent the case to the lower court levels per they plunged more than 30%, their biggest intraday drop since 2013.

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 that 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. hong kong's apple daily has published its last print edition. the city's only pro-democracy newspaper shut down overnight after it was unable to operate following the freezing of company assets and the arrest of top editors and executives under national security laws. the paper is owned by jimmy lai, who is facing a national security charge of colluding with foreign sources. a u.s. lawsuit accused china's zte of supporting an iranian terraced campaign which resulted in americans being injured and killed in iraq. the federal suit claims zte did

business with the islamic revolutionary guard. africa's biggest wireless carrier was also named in the suit. 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: let's get to a bloomberg scoop. the u.s. is set to bar some solar products made in china is changing region. that spring in tom mackenzie in beijing for more. what more do we know about this? i know you recently went to this region and looked specifically at this industry. tom: there are big geopolitical implications as a result of the span, -- this ban.

there are supply chain applications. the customs and border protection agency will put a withhold and release order targeting a company. they will block imports of any goods from that company in u.s. ports and they will not release them until and if that company can prove that those goods and items are not made by forced labor. the other part of this ban is from the commerce department. they will be putting five companies on their blacklist including gcl new energy and that is the company that listed in the u.s. that we visited last month in changing. that is a company that has not been accused at least by labor organizations and human rights organizations of forced labor itself but clearly, the u.s. has deep concerns about this company. it has been added to the blacklist. the big picture is this, in xinjiang, there is production of about 50% of the global supply

of the material key for solar panels and semiconductors so it is significant in terms of the supply. advocacy groups, human rights groups, and a panel of u.n. experts, say that there are human rights abuses taking place including forced labor. china denies those claims. they say this is all about undermining a successful chinese industry. the front page of yesterday's global times is foreseeing this event later today, saying the u.s. is speaking to hypocrisy and saying that politicians and industrial lobbyists are trying to ambush china's solar industry. >> what are the implications for the global solar industry? tom: given the significant amount of silica and that is produced, there's going to be a rupturing of supply chains. the u.s. solar companies rely heavily on imports.

a lot of those imports of solar panels will be coming from china. they are going to have to rework and source their materials elsewhere as a result of this ban, you would have thought. in terms of individual companies on this blacklist, we visited last month. they say they are trying to open themselves up to an independent audit to prove that there is no forced labor at the factory or the factories of those who supply them but we have yet to get to the point where auditors are allowed into the country. the broader implication as well is that you are likely to see prices that have already risen quite significantly rise even further and it could slow down the installation of new clean energy projects in the u.s. shery: tom mackenzie in beijing. coming up next, another alzheimer's drug gets fda breakthrough approval. they staged studies for its drug should be completed by september

of next year. the details, ahead. this is bloomberg. ♪

>> we have breaking from jp morgan. it is warning its employees it may require them to get vaccinated, saying requirements would have religious as well as medical exceptions but that they are giving staff until a deadline of june 30 to report their vaccination status, according to a returning to work memo. it currently still expects all staff to be back in the office in july and this is a number of wall street firms and employers where we have seen expectations of vaccinations as a condition of returning to the office. morgan stanley planning to bar

employees who are not vaccinated from entering its offices in the new york area and we have also heard bank of america planning to prioritize returning workers that have been fully vaccinated into their offices later on this summer as well and we are hearing jp morgan morning employees that it may require them to get vaccinated. shery. shery: we are counting down to the start of trade in tokyo and seoul. the ok governor -- will hold a press conference at 10:00 a.m. local time after the central bank releases its report on inflation targeting. in pyongyang, a state agency saying that north korea's foreign minister not even consider the possibility of contact with the u.s., saying it would only take up precious time. in japan, we are awaiting services for enterprise data, due later this hour. kyoto news saying japan may approve astrazeneca vaccine for people aged 18 and older and we are watching shares at the tokyo

open after its experimental alzheimer's drug received a breakthrough therapy designation from the fda, haidi. haidi: let's get more on this story. michelle cortez joins us now. it is refreshing to talk to you about something other than covid vaccines. how much of a game changer is this? michelle: this could be the second drug that might be available for alzheimer's disease. the thing here is that the fda has said that it has breakthrough status so that means, if the drug holds up in clinical trials, it could have a meaningful benefit for patients. they have not completed those trials yet. we will not get those into a little more than a year from now, but if it does hold up to its promise, then that will be the second drug we have for alzheimer's disease so good news that there's some medicines in

the works for this condition that is so devastating. shery: what is usually the timeline for a drug like this? michelle: it takes years for a drug to get through the development process, usually about a decade, and between $1 billion and $2 billion so it is a very long effort. this particular drug we are talking about has already had a bit of a convoluted history. they had some early clinical trial results that looked really promising and then when it was looked at in a different way, there were some questions about it. now, the company is doing a definitive trial so we will know for sure whether it works or not. what is significant is that it is working with biogen and biogen is the one that got approval from the fda for the very first alzheimer's drug. it is designed to slow the progression of the disease. these two companies are working together on both these medicines. after decades of failure after failure in alzheimer's disease,

the idea that these two companies are going to come together and make it two different products on the market, it's really a compelling story. we are waiting for that data that shows that it will have the impact we all are hoping for. shery: michelle cortez. here is a quick check of the latest business flash headlines. sources say bullish cryptocurrency exchanges -- merger talks with farc acquisition. the deal could value bullish annually $12 billion with an agreement possible in the next few weeks. the final valuation could change depending on the price of bitcoin. it has received a green light to list on the hong kong stock exchange. the latest homecoming share sale by a u.s. listed chinese company. the ev maker could raise as much as $2 billion from the ipo while listing by exxon would end a

brief hiatus in hong kong share sales by chinese firms traded in the u.s. bloomberg learned hong kong's -- filed confidentially for a u.s. ipo. we are told the on-demand

>> the u.s. economy is really on fire. cracked developed markets like the u.s. and europe are for that head. >> worried we will see a second half of the year where the economy is running really hot. first and foremost, the u.s. economy. >> prices are going up and we see it in our companies. >> that will have spillover effects into the global economy. >> i don't think it is anything to be alarmed about. >> the chances are higher as opposed to lower that this is ongoing inflation and the fed

will need to adjust. >> this is in our view a transitory phenomenon. >> i am concerned about inflation overshooting by more and for longer. >> i think if you see breakeven inflation rates go above 3% or something like that and you see that spurt, then you have the dilemma of the tightening of the monetary policy. >> some of the top views on price gains from our guests at the qatar economic forum. more details about jp morgan saying it may require its employees to be vaccinated against the covid-19 virus to return to the office. let's get more from nabila ahmed . this is the latest and what has been a drumbeat in return to offices and how vaccine statuses play into wall street. nabila: wall street is trying to figure out how to get people back into its offices in a safe way. jp morgan saying it wants all of its employees to tell the bank whether they are vaccinated or not. they will prioritize the return

of vaccinated workers but they have said they would like all workers back on july 6. that does not give a lot of time for these people to get up to speed on their vaccinations. shery: we are expecting the fed's stress test results this thursday. what can we see -- what are we expected to see there? nabila: this test came in on the back of the financial crisis and the objective is to assess whether banks have enough capital to withstand any economic turmoil. the fed tested 23 banks including u.s. subsidiaries of european banks and we are expecting the results overnight our time, thursday after market close in the u.s. haidi: could we see an upside reaction for u.s. banks? what are investors pricing in? nabila: exactly. it is a bit of a payday for investors. the big u.s. banks are inspected to dubai buyback and dividend programs and we are

talking about a capital return of 140 billion when they clear the test. shery: what can we expect for european banks? nabila: that is the big question. all eyes are on deutsche bank and credit suisse. deutsche's has been warned that the fed is concerned about its compliance policies and credit suisse, as we know, has been through a couple of crises lately with the collapse of the hedge fund and the supply chain financier. they lost a lot of money from that so people are watching to see what the federal say about those two. shery: nabila ahmed. gary gensler says trillions of dollars worth of assets may need tighter rules. a problem highlighted by this year's market disruptions. he spoke exclusively to bloomberg about what the sec is doing to review rules on everything from meme stocks to blank check companies. denso says investors want to know that there's somebody looking out for them. >> animated every day working

families. working families need the connection and franklin roosevelt knew this in the 1930's. we know this now. it's about working families, ensuring they get the disclosures so there is a cop on the beat, protecting against broad manipulation. that helps companies raise money by the way, by lowering the flawed manipulation, ensuring that there is consistent disclosure to those investors. i think companies benefit as well. >> let's narrow in on that. what specifically do you think we need more disclosure for? >> is trillions of dollars of management calling for greater and consistent disclosure around climate risk and i also asked staff to take up disclosures around human capital. the most fundamental asset of a company, the people that work there. >> gary, thank you so much for joining john and i this morning. i'm going to go broader here.

i have never seen a primal cry for an fcc commissioner to just do something. you mentioned something i mentioned one hour ago, which is fdr. early in the depression, there was a crime all scream chairman to do something. what do you want to do to help us with meme stocks, specs, and other things i don't understand? >> tom, you are being a little immodest. i'm sure you understand them better than that and your listeners have listened to you for years. what i think the important thing is investors want to know that there is someone looking after them. working families, pension years, people who have 401(k)s. you mentioned special-purpose acquisition companies or so-called specs. it's really making sure that the sponsor who is behind that is fully disclosing their take on it. these are very expensive,

deluded products. the sponsors take out a chunk at the beginning and there is more being taken out later when they merge with the private company in what is called a de-spac. i just call that a target ipo. it is those disclosures ensuring that retail investors get the right disclosures, kind of protect it if somebody is not misleading them, and secondarily, that they are participating just like the institutional investors and a lot of the big institutions buy into these facts later during that target ipo and they do so at a preferred price rather than the price the retail public is getting. >> gary gensler speaking to bloomberg's jonathan ferro and tom keene. do not miss another big player on the bank of thailand's governor, joining us exclusively in a few hours time after they held rates unchanged. this is bloomberg. ♪

>> this is "daybreak asia." i am su keenan with the first word headlines. we start with two fed officials who were saying the central bank could start tightening sooner than expected. atlanta's 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 lifting rates in 2022. robert kaplan is also forecasting lift off in 2022 and believes the u.s. economy will meet the threshold for tapering sooner than most believe. sources say the u.s. is set to ban solar products made in china's changing province over suspected human rights abuses. the move what mark the biden administration's biggest action yet against beijing's alleged crack down the uyghur muslim minority. xinjiang produces roughly half of the world poly silicon material for solar panels and semiconductors. john mcafee has been found dead in a spanish prison cell shortly after it was announced he would be extradited to the u.s. to face charges of financial crimes. the creator of the mcafee antivirus software had been jailed in spain since october on u.s. tax evasion charges he owed more than $4 million to the irs.

a spanish newspaper reported that he appeared to have died by suicide. 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'm su keenan. this is bloomberg. shery: the pro-democracy newspaper of hong kong's jailed media tycoon, jim ely, is said to have published its last edition this morning after the arrest of senior editors and executives in the freezing of its assets hindered its ability to survive. for the latest, let's bring in stephen engle in hong kong. is this it for the apple daily? stephen: oaks like it is, and whether you loved or loathed the apple daily, it is the top story in hong kong today and for what it represents under this national security law, crackdown, if you will, and the first trial ended the national security law also coinciding with this crackdown, just

starting yesterday, of course. this is the final paper here. i'm not here to celebrate necessarily the end of this newspaper or, you know, applaud the paper, but we have to talk about it because it is something on the minds of a lot of people in hong kong. the from page is basically saying hong kong or's come out in the rain to say that painful goodbyes. normally, this has a circulation of 86 thousand per day. there's 630,000 page subscriptions and that includes online. today's -- last night's midnight press run was for one million copies and people have lined up at the headquarters in the new territories to say their goodbyes and also add new stands to gobble up copies of the final round of the apple daily. this after its assets were frozen by authorities after senior editors and executives, including jimmy lai, over the

last week -- jimmy has been in jail serving a 20 month sentence already but in the last week, senior editors and executives have been arrested and charged under the national security law. most recently, a senior columnist was arrested yesterday, also charged under the national security law. this is the newspaper that hong kong or's love to hate. over 26 years, apple daily has been a thorn in the side of beijing, unearthing alleged corruption and missed doings by the communist party officials, which rankled beijing and uncovered alleged miss doings of hong kong officials. on the other set of the coin as well, there's also featured traditional tabloid fare, doing racy stories on celebrity gossip. so on the one hand, people, you know, did not like the newspaper for what it was, but on the other hand, many hong kong people also applauded its challenging of authorities so

that's why this is a very big, important story here today, the end of an era, if you will, for the apple daily, after 26 years. shery: i feel like a lot of people were saying, you did not have to like it to believe it had a role to play. what is in store for the jailed leaders of the daily and how are we seeing this crackdown manifest elsewhere? nabila: it's interesting to see what will happen. lifting up carrie lam yesterday, we have to get into the mindset of what the hong kong government is feeling about this picture defended quite vociferously their actions against the apple daily and essentially, as you can see here, just because they arrested members of a newspaper doesn't mean that they are cracking down on press freedom. let's change the page, and this might be a more interesting soundbite or quote. she says national security law will have to be enforced seriously. there is also a preventative and deterrent effect. it has to have a deterrent

effect if it is to be -- if it is to achieve its objective. and again, coming from the government, this is what they want to see the national security law do. whether this causes a chilling effect in the press community or financial community, i leave that up to the viewers to decide because also here yesterday, we got that quick me a call but from hsbc after they had put out a tweet saying that their online and mobile banking services would not be available abroad. that sparked concerns that this crackdown, if you will, will extend as well to financial services and the ability for those overseas to take their money out of their hsbc account. hsbc came out quickly and said this is a misunderstanding. he will be able to access your funds abroad, but again, in the mindset of many hong kong people, things are changing quite rapidly here in hong kong. >> stephen engle on a remarkable

and historic day in hong kong. coming up next, with economies reopening, airlines resuming flights, qantas is poised to emerge stronger than ever. we take a look at the region. ♪

haidi: one of southeast asia's

biggest conglomerate says the pandemic catapulted online learning into the main rain. jeffrey chair told me why e-learning is here to stay. >> this pandemic has helped push and springboard the online learning and i believe that into the future, we might have to do it online. if not because of this pandemic, people may not put so much effort into, you know, online teaching and i believe this will serve us very well into the future because now, the technology has more or less been upgraded to a level where, you know, students can learn online. >> what would you like to see companies in the private sector doing more of? >> the real question is not, you know, --

why sustainability is important, but whether we can continue to go on as we are given the state of the planet and its people. our commitment to sustainability and our core values of integrity , humility, and excellence, have helped us become one of the regions leading conglomerates and here, sustainability is also emphasized in our vision statement, which is -- in sustainable development, enriching lives for a better tomorrow. we are demonstrating that the sustainability and profitability can go hand-in-hand and that we can all do well by doing good. >> staying with the fallout from

the pandemic, and qantas is poised to emerge stronger than its other aviation hearers. it is facing a loss in holiday traffic. let's get more from our asian business reporter, angus. the latest blip aside, as we deal with every time there's one of these cluster outbreaks, we have seen domestic market really seeing a boom for qantas. angus: that's right, haidi. the imminent lockdown, if you like, qantas really has not wasted this crisis at all and have looked at how it managed its crisis in the story that is out today and it is clear that qantas is now almost unassailable in its own market. domestic market share is 70%. it was at 74% at the end of last year and on a balance sheet perspective, it is one of the most secure airlines in the world if you look at its net

debt to earnings ratio at 12 months. it has used this crisis to be ruthless when it comes to cutting jobs. competition at the very start. it should not get a bailout and virgin australia could collapse handed has come back really with much more modest ambitions and served to make qantas in a very strong position. shery: the question is what happens from here, especially when you have more infections in australia, not to mention the looming lockdown. angus: that is always a risk and it has been a risk and every time we have had a lockdown, it dented qantas's earnings. and it prolonged -- a prolonged lockdown will do more damage. that aside, it has not seemed to harm qantas's domestic success. lockdowns in victoria and new south wales, the most populated

states in australia, and qantas's domestic business is set to be larger this year than it was before the crisis. earnings are projected to double in the next two years according to the most bullish analysts in australia, and net debt has peaked at qantas so that is the risk. the longer australia is locked down from international competition, and the longer the border is closed, the better this is for qantas from a domestic point of view, which has been a profit engine for good. shery: angus whitley in sydney. breaking news at the moment. we are getting the japan services ppi numbers when it comes to the month of may. it's growth of 1.5 percent is in line with expectations and it is growth from the previous month. we can expect there to be base effects even the pandemic last

year but this could still be three months of consecutive expansion when it comes to ppi services year on year, and remember, we are watching all inflationary pressures around the world very closely. we had ppi numbers out of korea this week coming in pretty strong and we expecting cpi numbers for tokyo later in the week so we will be watching all of these inflation numbers very closely. the president of a new 4.3 billion dollar las vegas casino says demand looks pretty good ahead of the property's thursday openings. reservations for it opened a month ago and they are filling up ahead of schedule. let's it has been three years. a lot of hard work, and we are excited to get to the finish line, and we are going to open tomorrow night. >> what does that looking look like? how is demand? x it looks pretty good. vegas is doing quite well. we are ahead of schedule.

partners with the hilton helped us kickstart it. we have a lot of reservations. we will start checking the public and on friday. >> was this going to feed focused -- be focused on asian visitors? the u.s. economy is coming back really sharply but it is the domestic focus. what kind of demand are you going to see? when do we go from a narrowbody recovery to a wide-body recovery? >> that was never really the intention. we are not just going to cater to the asian market. we are well known all over the world so we are excited when they do come to las vegas and want to visit our property and then the high-end gaming international customer, but we cater to everybody. we are a property that will cater to all levels of customers. we think it starts to come back later this year but we are hoping by chinese new year, it is up and running again.

>> in terms of advance bookings, what is your visibility right now? what is your visibility? >> it looks good for the future. weekends look really good. now, we got to get the business back in las vegas because we got to 100% so it is starting to see a lot of bookings happening and we look good for the fourth quarter into the third quarter, going into next year, and that will happen with our business but on the weekends look -- look really solid for the rest of the year. >> is that something that you can do straightaway or is that something you're planning to do? >> we cannot do it today. >> if you had to pick one?

>> there's so many cool things. >> i know. do it. >> i would say the speakeasy. there's a lot of speakeasies and it's going to be hard to find. it's going to be the talk of the town. everybody will want to get in there. that is my favorite on the property. >> las vegas resorts president scott speaking with guy johnson and alix steel. we get more on the tourism sector later when we speak with the ceo of shanghai hotels about the outlook for their business. do not miss that interview. let's get uh quick check -- a quick check of the latest businesses. they are suspending sales of machines to prop up prices. it says it stopped selling new equipment after it plunged 75% since april. the state of the $15 billion deal with aramco will be the

focus when the chairman addresses shareholders on thursday. investors will also be watching out for details on the 5g rollout, a possible listing of the digital unit, as well as the cheaper smartphone being developed with google. let's take a look at some of the stocks we are watching. sophie. sophie: shares after the japanese pharma and partner said the second alzheimer's drug has received a breakthrough therapy designation from the fda and also watching other names, japan's astrazeneca suppliers, stay on the radar, with nikkei reporting the vaccine may be approved. keeping an eye on names like rio tinto. we are also watching asian solar companies on the prospect of a u.s. ban on some solar products being made in changing area the group set to complete an m&a deal that was signed in 2015, shery. shery: we will get more markets

in situ at the head of asia research, marc matthews. the market opens in sydney, seoul, and tokyo are next. this is bloomberg. ♪

shery: hello and welcome to "daybreak asia." haidi: taking a look at the major markets opening across asia, asian stocks are set to split as more fed officials as a tapering could start in a few months, with a rate hike as soon as next year. a bloomberg's group says washington could ban --

and we speak with the ceo of the luxury hotel chain, clement kwok. shery: a bit of a mixed picture across markets at the open in japan, south korea and austria. let's turn to sophie for all the action. sophie: downside moves for the start of the open in tokyo. extending losses from the middle of the week. 1.15 could be on the horizon, given there are prospects of more policy diversions. td securities, td bank warning there are barriers above 111 for the dollar-yen. cpi for may to digest in japan coming in that .5%, as expected. we are waiting on the b.o.k. report on inflation targeting, anti-july bond issuance plan which comes as the government proposes the 6th and biggest budget proposal the pandemic

era. no additional debt will be issued. the korean yuan up slightly. the kospi is getting ground after a two day decline. keep an eye -- switching out over to australia, some moves to the upside. keeping an eye on names like rio tinto. the aussie dollar holding onto a three-day gain, while the dollar has changed little. goldman sees in the near term risking upside for greenback strength. 10 year yield still favorable at 150. keeping an eye on asian growth stocks, especially smaller names in that space. chinext getting ground on this yield outlook. up about 6% since the june 16

update. haidi: our next guest says cyclicals could pull back even further. but in the longer term there is more room to move up. joining us as mark matthews, head of asian research. always great to have you with us. are you waiting for more of a pullback to reenter, or where do you see the opportunities then? mark: we only have about 5% of our portfolio is in cash. we would be waiting to deploy those when the right idea comes along. but i do not think it will be buying cyclicals on a debt -- a dip. the whole cyclical trade got shook out last week and then everybody got shook out. what i find very ironic is both the s&p and 10-year treasury yield are right back where they started before the fed meeting. but clearly when you look at the commentary that has come out

since the meeting, they all frankly were talking more hawkish late -- more hawkishly. i feel that will continue to support the inflation argument. on the other hand you had powell and kashkari saying we have to wait longer, and mester was in the middle. it is all very confusing, isn't it? i think as we come out of this pandemic, the market is pretty much priced in 90% of the recovery. and we would want to be equally weighted among value growth and quality. i know that sounds very boring but i think being neutrally weighted with equities is the place to be right now. haidi: the other thing, you make a very good point, is the fed does not have some magical crystal ball that tells exactly what will happen.

they are working at best guest scenarios the way most other analysts are doing as well. is there an unfounded fear that because the stimulus came on so quickly and generously that the pullback will be just as fast? mark: yes. i've read a lot that the pandemic was very short-lived in terms of its economic impact and therefore the recovery that follows it should be shorter than normal recovery as well.

i suppose intuitively that is sensible. having said that, there is a lot more to the market than the cyclical ups and downs of the economy. where we would be on a five-year view is much more in the so-called growth areas of the market still. technology is always one that is talked about. anyway, therefore, yeah. shery: are you positioned within japan? we had big news with the alzheimer's drug, not to mention astrazeneca's japanese suppliers, if astrazeneca is approved for people 18 and older. mark: health care is certainly one of our biggest overweights. therefore including japan. but structurally japan is not one of the markets we like. i would put it somewhere alongside europe with an aging

demographic. not much technology in the overall market or life-sciences. deep value, but for a reason. shery: talk to us about growth then. because you wouldn't say you would buy cyclicals with this dip, but this chart on the bloomberg showing growth names in china are trading now cheaper. mark: yes. this has been a self-induced de-reading because of the increased regulatory oversight of the 34 big internet companies in china. i think it is going to last quite some time more. because it is a very broad -- it is the entire digitalization of the economy which has been so fast in china that the regulation of it did not really

achieve up to pace. so this will be an overhang, but i would say if we use retail, for example, consumer retail sector, just as an example, the online penetration in that sector was 25% around two years ago. three or four years ago -- from now it will be -- there's a similar trajectory you can draw in education, travel, health care, and pretty much everything. the economy is digitalizing. i would not want to be short that idea. so there is this overhang but there is still going to be a lot of growth for the sector. shery: mark matthews, always great seeing you. let's not get to su keenan with the first word headlines. su: forces to the u.s. is set to ban some solar products made in

china over suspected human rights abuses. the move may announced thursday and would mark the biden administration's biggest action yet against beijing's alleged crackdown on the uighur muslims minority. they produce roughly half of the world's poly silicone, a key material for solar panels and semi conductors. hong kong's apple daily has published its last print edition. the only pro-democracy newspaper shut down overnight after it was unable to operate after the arrest of top editors and executives under national security laws. the paper is owned by jailed media tycoon and activist jimmy lai, who is facing a national security charge of colluding with foreign forces. the u.s. supreme court has rejected a core part of a lawsuit against the federal housing finance agency, brought by fannie mae and freddie mac investors. the justices dismissed claims

the agency exceeded its authority in collecting profits from government-sponsored firms. fannie and freddie launched the most in intraday trading since 2013. john mcafee has been found dead in a spanish prison sell shortly after it was announced he would be extradited to the u.s. to face charges of financial crimes. the creator of the mcafee antivirus software had been jailed in spain since october on u.s. tax evasion charges, owing more than $4 million to the u.s. a spanish newspaper reported he appeared to have died by suicide. 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'm su keenan. this is bloomberg. haidi: still ahead, hong kong hotel ceo clement kwok joins us to discuss tourism in malaysia

with the easing of quarantine resurgence. next, yichen is betting clinical attention will be a boon for chinese tech. that conversation is ahead. this is bloomberg. ♪ this is bloomberg. ♪

haidi: let's get to that bloomberg scoop. the u.s. is set to bar some solar products from china, marking one of the biden administration's biggest steps to counter alleged human rights abuses. it is critical to the global solar supply chain. so, i'm so curious about how they went from nothing when it comes to policy looking for solar, to being the center of the universe for supply. is this all down to industrial policy? >> thank you for having me.

the advantage is primarily because it has a lot of affordable electricity. if you look at global policy look on manufacturing, we estimate roughly half of the demand -- their share of that is around 40%. there is a lot of capacity. even in the u.s.. in the u.s. there is already 60,000 metric tons per poly silicone. you have various companies, they all already have capacity in the u.s. the question is does the economics work for them to target the solar industry, or do they go for higher value applications. haidi: when you take a look at the reasons why it is so dominant in china, what are the

implications for the u.s. market? >> this is a tough question. it remains to be seen what exactly final rules are how they will implement it. right now from the news coverage it looks like they are targeting specific companies. the solar supply chain, this is not the first time it has been targeted. many jurisdictions have been putting restrictions. the difference this time is in prior cases, it was the end product. for the supply chain it was easier to work around that. for example, you could assemble the model at a region not targeted while continue to monitor a sell. -- a cell. working around that could be trickier. ultimately this could lead to higher costs. in general though, we have seen

input costs for renewable energy could rise over the last year or so. still, developers have managed to keep down costs. they have found ways. shery: we have breaking news. bloomberg learning u.s. negotiators are preparing for a return to the iran nuclear talks, according to an official that says the talks could resume as soon as next week. the sixth round of negotiations nvidia about the iran nuclear deal bore no results after the u.s. retreated from the iran new rerecord -- iran nuclear court in 2018 under trump now we are here in the u.s. is preparing to return to the talks. going back to political tensions between washington and beijing, now, this could actually be a boon for chinese tech.

he gave me his investment outlook at the qatar economic forum. yichen: asia is bouncing back nicely. particularly east asia. we see a lot of opportunities that china emerged from the pandemic first. so, many factors such as health care, technology, and consumption are the major focus for most of the private equity investors. shery: and yet we are seeing some signs of weakness across china as well, such as the clamp down on certain sectors of the economy. perhaps on liquidity tightening as well. how does this impact your investment outlook when you are trying to find where to find opportunities? yichen: well, for equity

investors, too much liquidity might not be a good thing. the fact the chinese government is taking proactive initiatives, curtailing the flood of liquidity around the world, is sort of a preemptive measure. i think it bodes well for the long-term potential of the chinese economy. as for the crackdown, some of the anti-competitive practices, which were fairly rampant in the internet sector and all that. for a while i think the government was happy to see growth, but now decided it is time to curtail some of the anti-competitive, monopolistic

type behavior. i think all of that in a year when you already see the chinese economy growing 18.3% in the first quarter is actually a good thing. because the chinese government does not want the economy to overheat. so what gives you the time to actually take care of some longer-term issues. haidi: china's campaign to cut leverage is reshaping its corporate credit market. some are going months without selling. rebecca choong wilkins joins us now. is this a watershed moment we are seeing? >> certainly what we are seeing is relatively unprecedented in the modern history of china's credit market. to see stressa t two -- at two

giants. that, we don't have that kind of precedent. this really is a new fresh high for the asian campaign to try and curb risk. another way to see this is a book and for a period in the history of beijing's capital market where companies were allowed unfettered access to the capital markets and to borrowing. which in a way prompted a lot of irresponsible borrowing practices and allowed companies to grow at an incredible pace. shery: what are the risks for beijing? are we seeing contagion risks? rebecca: absolutely. certainly this is a delicate dance they are trying to do. fundamentally there has to be more default and more failures to try and curb the assumption.

however, at the same time beijing is very concerned with maintaining financial stability. they will step into try and reduce the risk of contagion. so far we have seen them effectively manage those contagion risks. in some ways the more maturity the credit market shows, that may act as an incentive to allow more defaults to come through. shery: coming up next, china's crackdown on crypto is expected to spur miners to lead the country, but where will they go? this is bloomberg. ♪

shery: take a look at what

softbank is doing. we are seeing the best day for the stock since may 28. this following the agm yesterday, where they said he is not letting go of the reins anytime soon, and he could stay on as chairman past the age of 69. softbank also reporting the largest quarterly net income for a japanese company ever, propelled by e-commerce giant coupons ipo. the stock gaining more than 3%. let's turn to china's crackdown on the crypto industry, now having a huge impact on miners, and could cause an exodus from the country. the recent moves are expected to spur miners to uproot their operations and had a broad, with the u.s., canada, and sweden being seen as possible landing spots. joining us now is joanna ossinger. what are some of the signs the crypto crackdown is having an effect? joanna: the measure of the hash

rate, which is the computing powerpoint towards computer mining. it is down about 40% according to some data. so, that is, even in the past couple weeks. it does look like miners are pulling the plug on a lot of their operations. haidi: when it comes to suspensions, what are the implications of this? joanna: this is happening as the price of new rigs dropped 75% since mid april. so it shows that people just do not a man this equipment anymore. it is another sign that miners are either feeling uncertain or stopping their operations entirely. haidi: let's get you a quick check of the latest headlines. blackstone ceo stephen schwarzman says the risk of a

u.s. capital gains tax hike has led to explosive growth in potential targets for his firm. they were part of a consortium that bought a majority stake for more than $30 billion, in one of the biggest leveraged buyout of all time. he spoke at the qatar economic forum. >> it's really like an avalanche now of opportunities of people who want to sell things before their taxes are much higher for selling the same thing potentially next year. and so it is giving us a lot of opportunities. and what we have to do is be careful. a very exciting plan for growth. haidi: the fate of reliance industry's plan deal with aramco will be the focus when the chairman addresses shareholders thursday. investors will also be watching for details in a 5g rollout, a possible listing of its digital unit, and a cheaper smartphone being developed with google. the annual shareholder event for

the second year in a row will be virtual. he could step down at the end of the month. however, he will continue as a consultant through the end of the financial year. they had earlier announced a former daimler executive as the next ceo, but reversed that decision without disclosing why. next, hong kong set to further ease quarantine rules. clement kwok gives us his outlook for the tourism rebound prospects. this is bloomberg. ♪ his is bloomberg. ♪

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>> when we look at our search results, pent-up demand is very strong. i think people have the money to travel, and an eagerness to travel. we are just waiting for the right time for the border open. >> right now we stand on a global basis just a shade under 50% and rising, which is quite encouraging. when we look at trends, month over month we see a pretty steady improvement. >> we think it starts to come back later this year, we hope by chinese new year next year it is

up and running again. haidi: some of our guest commenting on the outlook for travel at the qatar economic forum. sydney is on the brink of a lockdown to contain a rapidly growing covid-19 outbreak. the health minister is in isolation as the number of cases nearly doubled wednesday. we're still waiting on the latest numbers for today, but it seems it has breached within the government. >> the new south wales parliament is emerging as a hotspot. the daily press conference from the premiere will be about 90 minutes later than usual today, so obviously they will have something important to say. we had cases spiked to 31 yesterday, which in a global sense does not sound a great deal, but considering we were at zero week ago, and for many months before that, it shows how quickly this delta variant of covid-19 spreads.

we had just fleeting contact between one positive case passing another person in a mall late last week. that was enough to cause infection. so this has led to some fairly strict lockdowns, or new restrictions. mandatory masks indoors and on public transport. seven local government areas including city effectively prohibited from leaving metropolitan city. this delta strain is spreading quickly. the situation is fluid. and the premier yesterday not ruling out the possibility of a broader lockdown. shery: given that this spread so quickly, with the risk of the outbreak spreading to new zealand, which has done really well and contain the virus? tom: the news emerged travel from sydney went to wellington, the capital of new zealand thursday last week, returned monday this week, then tested positive for covid-19. while in wellington, had visited a number of very well populated

venues, including an exhibition at the national museum where there were more than 1000 attendees. so tremendous concern there now. on the positive side, that person had received one dose of the astrazeneca vaccine, which in theory makes you less effective. and four of that person's close contacts all tested negative. but the silly -- city of wellington is moving to tougher resections as well. the bubble has been paused. a nervous wait in new zealand. shery: after losing $4.5 trillion and over 62 million jobs last year, the global tourism sector is hoping for swifter rebound. the vaccine rollout is giving governments new confidence to welcome back visitors. this week hong kong joint peer -- joined others in easing

travel resections. let's bring in clement kwok, the owner and operator of the peninsula brand. great to have you with us. how positive you expecting these new hong kong quarantine rules to be for your properties? hi, are you there? can you hear me? we will try to get to clement kwok. let's now turn to su keenan with the first word headlines. su: two fed officials say the central bank could start tightening sooner than expected. atlanta's rafael says the strong u.s. recovery means it might be appropriate to start slowing asset purchases in the next few months. he also said lifting rates in 2022. the dallas fed president is also

casting -- he believes the u.s. economy will meet the threshold for tapering sooner than most believe. the california -- to california, where governor gavin newsom is set to face a recall after petitioner's collected enough signatures to trigger an election. he has faced scrutiny for his efforts to control the pandemic with strict lockdowns, which fueled the movement to remove him from office. he was criticized for dining without a mask at a luxury restaurant last november, while telling californians to avoid social interactions. a white house official says u.s. negotiators are prepared to a return to indirect talks with iran on the 2015 nuclear deal, once leadership in tehran is ready. one source says president biden 's negotiating team could resume talks as early as next week. iran's new president said this week iran would continue diplomatic efforts to revive the accord. a u.s. lawsuit accused china's

zte as indirectly supporting an iranian terrorist campaign resulted in americans being injured and killed in iraq. it claims they did business with the islamic revolutionary guard, even though the new transactions would help finance, arm, and support iran's terrorist activities in neighboring iraq. africa's biggest carrier it was also named as a defendant in the suit. 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'm su keenan. this is bloomberg. shery: more daybreak asia had. this is bloomberg. ♪ bloomberg. ♪

shery: this week hong kong joins peers in easing quarantine and travel resurgence. let's bring in clement kwok, the owner and operator of the peninsula brand. great to have you with us. tell us, how positive is this easing of the rules of quarantines in hong kong? clement: the situation in hong kong is the local infection rates have always been very low. our domestic business had been pretty well-maintained maintained and the recent easing relates to hong kong residents

returning from overseas. we're still waiting for hong kong to ease rules for overseas visitors to come. that is something we would like to see very much. so vaccinations can increase. shery: is this a start, especially for tourism to get going, to get started from people overseas? i know you're also revamping the peak tram this weekend. clement: obviously for all the hospitality sector in hong kong, we all need overseas visitors. for the peak tram, we're investing a lot of money to expand and upgrade it. so again, the return of international tourists is very important for that investment. haidi: how are you preparing for the return of international businesses when it does come? speaking to the likes of airbnb, we have seen a real shift

because of quarantines assertions to more localized estate. is that something -- localized stays. does that present a challenge? clement: the most important thing always is to maintain the quality of your experience. throughout this pandemic, even though we have had to cut costs and manage our people, we have always maintained the quality of the experiences. we believe luxury markets are still there. if you look at a hotel like the peninsula shanghai, there is a large domestic travel or market. it is pretty much returned to normal. that is what we are hoping to happen in hong kong and other markets as well. haidi: what's an abroad approach for whether vaccinations are required? are you planning to have all your employees vaccinated, given that hospitality tourism are front lawn it comes to exposure? -- frontline when it comes to

exposure? clement: we are really encouraging everyone to get vaccinated. in some places we are over 90% vaccinated. in hong kong, there was some news we were giving incentives to our employees, cash amounts for employees to be vaccinated to boost up the rate. but it's not just about cash. we are giving them the opportunity to have medical checkups and take a day off in case they felt any aftereffects from the shot. haidi: especially in hong kong where the take-up has been pretty slow. will you ultimately make it a requirement? is it too big a risk to have unvaccinated staff? clement: we prefer to make it persuasive rather than a requirement. we have seen in the past week or two, a very good pickup. both among our own staff and hong kong generally. so we are confident our staff

will get to 70% quickly, and the rest of hong kong should follow as well. we are quite optimistic about that. as we said earlier, with that vaccination rate, hopefully our borders can open up and tourism can resume. it is a big industry for us. shery: will the requirement standards differ because of the region? in the u.s. we are already seeing the likes of morgan stanley and jp morgan require mandatory vaccinations. clement: well, i think it is up to the country to establish some travel protocols, whereby with vaccinations we have clear rules as to what traveling can be undertaken. and that applies to hong kong as well. there has been talk of travel bubbles between hong kong and different countries. those have not really been established yet. in the travel industry the most important thing is to have that protocol whereby people know on what basis they can travel. shery: tell us a little about what is happening in your u.s. hotels, because you already

fully reopened. what kind of traffic are you seeing? clement: the latest hotel to reopen was peninsula new york, which opened on june 1. we have been happy with the pickup we have seen since. i understand things are returning to normal pretty well. our other two hotels are in chicago and beverly hills, and those are going good as well. i think the u.s. is a good example where once the vaccination rate gets to a certain level, then things can be relaxed and business can return and head more towards normal. haidi: are you feeling confident enough about the outlook to add more to your portfolio? clement: we are building two hotels at the moment, one in london and one in istanbul. the london project is a major, major investment. anyone driving in london now will see it on hyde park corner. we are investing a lot of money for the future, and that

commitment remains unchanged. we are working hard to open the hotels in london and istanbul, with that optimistic future in mind. shery: clement kwok, it was great having your insights. let's take a look at the markets. u.s. futures continue to grind higher, up .2%. this after stocks in the near session we -- in the near session went sideways -- in the new york session went sideways. in the asia-pacific sue -- energy gaining a little after we had brent surpassing $75 a barrel. we continue to see tightness in the markets. oil slightly overbought according to the 14 day rsi. japanese yen topping that 111 level. we have not seen that in quite some time. more than a year or so, the

lowest since march 2020. the u.s. dollar in a psychological threshold. haidi: we're seeing a comeback for protesters in thailand. they are expected to return later thursday, calling for a number of changes including the government's resignation. our bloomberg reporter joins us with the details. so what spurred the resurgence of demonstrations? >> a couple of reasons. one is that today is an anniversary of the revolution which marked the end of absolute monarchy 89 years ago. heat is considered one of the most important dates for the pro-democracy movement in thailand. another reason it has been six months protesters have been on hiatus because of covid-19. and protest leaders have said they plan to draw fresh support from people who are frustrated with the government's handling

of the outbreak and vaccine rollout. so they are using this opportunity to revive the movement again and push for the government's resignation. today is also the day the parliament is reading his first draft of the charter member. shery: what is the expected outcome? how are protesters reacting to these proposals? >> the proposals from the ruling party would likely pass, but they did not really respond to the protester's demands at all. one of the key proposals is the change in the election system, which will essentially give bigger parties more advantages in future paul's. -- future polls. what the protesters want is an overall the constitution to make it more democratic. this changes being discussed in parliament is doing quite the opposite. haidi: what is the outlook now

for thailand? >> we're going to continue to see tension between the government and protesters. the return of these protests present a challenge for the government, which is now trying to revive the economy and reopen the country for tourism. so the government would try and shut this down. we will see more arrests and detentions of activists. on the other side the protesters will try and mobilize crowds. how successful they will be, we will have to see how many people show up at these events today. shery: don't miss a big guest from thailand letter, the central bank governors joining us exclusively in a few hours after keeping rates on hold. next, ex-con won the nod to list on hong kong stock exchange and could raise as much as $2 billion. haidi: be sure to tune into bloomberg radio to hear more from the day's big newsmakers,

get in-depth analysis from the daybreak team, broadcasting live from our studio in hong kong. plenty more ahead. stay with us. ♪

haidi: here are the latest headlines. the world's biggest maker of bitcoin mining rigs is --

he says he has stopped selling new equipment after top-tier rig prices plunged by about 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. shery: sources say renaud is considering selling its first samurai bond since former ceo carlos ghosn was arrested. the carmaker is set to have started sounding out investors about issuing two and three year notes denominated in yen. they sold semi bonds last in june of 2018, with some notes maturing next month. sources say bullish cryptocurrency exchange act by a group of billionaires, including peter thiel, is in merger talks. the deal could value them at

nearly $12 billion, with an agreement possible in the next few weeks. the final valuation could change depending on the price of bitcoin. bloomberg learned hong kong's -- has filed for a u.s. ipo. the on-demand logistics and delivery firm is loo -- is looking to raise at least $1 billion. they provide on-demand courier services across asia, latin america, and the u.s. haidi: they received a green light to list on the hong kong stock exchange as soon as this year. sources tell us the ev maker could raise as much as $2 billion from an ipo. let's get the details now from julia perretti. what do we know? julia: they are one of the

first to do homecoming listings since schip.com in april. it is quite notable because it will be a dual primary listing instead of a secondary listing like the ones we have seen before. that is because it only listed in the u.s. last august. so it has not got the two year trading record to do a secondary listing. it will also basically become the first of the trio of u.s. listed ev's to come back to hong kong. going to launch pretty soon. it is looking like a big deal. it is coming in a busy month for hong kong. shery: also coming at a time with fierce competition within the chinese ev market. julia: that's why these companies are always raising

money. they raised billions of dollars through stock offerings. they also signed a credit line earlier this year for about $2 billion. it is extremely capital intensive and there is a lot of competition in china, the world's biggest ev market. at the same time they are still struggling to turn a profit, although revenues are rising and vehicles are surging. haidi: are there more homecoming listings in hong kong on the cards? julia: there are. a lot of the big ones have been done already, but the other two are said to be planning homecoming listings, so we should be seeing those at some point this year. in addition to tencent music, that one is also reported to be.

there are companies. it depends on the timing and how the share price is doing in the u.s. when they decide to launch the deal. shery: tell us a little about now you key -- about this ipo, the bubble tea chain owner. julia: yes. they had initially planned to list in the u.s. last year, but they dropped that plan with the pandemic, with obviously caused store closures at the height of the lockdown. now it's come to hong kong and it's become a pretty successful ipo. the retail offer was apparently 400 times subscribed, according to local media. priced at the top of the range to signify strong demand. we will see how it does in trading next week, but it certainly seems to have

benefited from strong investor demand. shery: julia fioretti there. let's look at the markets right now, because we are seeing a mixed picture. the nikkei gaining .1%. but this comes at a time when the japanese yen is at a low we haven't seen in over a year. surpassing that 111 mark. when it comes to the sectors that are gaining ground, communication stocks, health care, consumer discretionary. the kospi is up .25%, a third sessions of gains. korean yuan continues to lose ground against the u.s. dollar. we have seen a little global funds reallocating abroad. asx 200 under pressure right now, despite the fact we are seeing commodity prices gaining ground with brent at the moment past that $75 a barrel level. kiwi stocks reversing two

sessions of gains to lose .1%. haidi: let's take a look at crypto. it has been another wild ride of this extraordinary story. we have seen a bit of a rebound when it comes to bitcoin. it did fall below that critical $30,000 level. trading at about $33,000 at the moment, fighting back from that landslide stoked fears of mass liquidation once it fell below. ethereum up by .6%. broadly, the crypto indexes up about .25%. the adjacent story in that universe remains bearish. suspending sales of machines to spot delivery globally. next, the market outlook with nancy davis, called one of the most influential women in u.s. finance. they actively manage more than

$1.5 billion in growth capital. our markets coverage continues. this is bloomberg. ♪ ♪

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david: this is my kitchen table and also my filing system. over much of the past three decades, i have been an investor. the highest calling of mankind, i've often thought, was private equity. [laughter] and then i started interviewing. i watched your interviews, so i know how to do some interviewing. [laughter] i learned from doing interviews how leaders make it to the top. >> i asked him how much he wanted. he said 250. i said, fine. i did not negotiate with him. i did no due diligence. david: i have something i would like to sell. [laughter] and how they stay there.