haidi: hello. welcome to "daybreak asia." i'm haidi stride wants -- i am haidi in sydney. shery: good evening. our top stories this hour. u.s. stocks paid a record high as president biden's $.5 trillion infrastructure plan boosts sentiment. he says the deal will create millions of jobs. wall street banks could be said

to hand out billions in dividends and share buybacks after the fed stress tests show they built up big stockpiles of cash during the pandemic. japan's emperor could have concerns about pressing ahead with the oak wheel -- tokyo olympics one month before the games are set to start. haidi: -- expected to sweep three asia as they set up for this final trading session of the week. what are you seeing? sophie: risk on appetite take hold in futures this morning early in the asia session. the nikkei primed for gains after a choppy week one we should see both indexes fluctuate, gaining more than 3% on tuesday before pairing those weekly advances. in new zealand, kiwi stocks gain ground. when it comes to the currency space, i want to highlight what going on with you on -- yuan.

we saw the dollar slip. we are seeing that correlation between the yuan and emerging currency space continue to creep higher towards historical highs on the correlation there. we have seen the policy divergence. the p voc ahead of the fed when it comes to taking their foot off the stimulus pedal and as the fed's policy is shifting, the pbs he will welcome the depreciation pressure on the remedy -- -- pboc will welcome the depreciation pressure on the renminbi. shery: joe biden striking the deal with the bipartisan group of senators for a 579 billion dollars infrastructure plan. biden says the pill will move in tandem with a much larger package of spending and tax increases that republicans oppose. pres. biden: we will see what happens in the budget process. if we get some compromise, i

will see if i can attract all the democrats to a position. they will move on the dual track. shery: let's go to laura davison for more on this. if we are seeing this dual track when it comes to these two bills, including the reconciliation bill, this could be a pretty long wait forward. laura: yes, this is a month-long process ahead of it. senators reached a tentative deal on an infrastructure package today and they say the bill will not even be drafted until sometime later in july. the president has acknowledged that this infrastructure package will not be ready to move until september. all the stuff that democrats could not get but want, things like housing, childcare, education, all the tax increases to pay for it, that will be an even longer process at the beginning stages of figuring how to draft what could be as much as a $6 trillion package, is

what some democrats were talking about. haidi: a lot of the climate measures have been criticized for not being out of this traditional infrastructure deal. will they be able to push these things through that reconciliation process? laura: that is democrats hope. they are trying to have this dual track -- two trains moving simultaneously side-by-side. it is tricky to get this done. on one hand, biden has to keep at least 10 republican senators happy with the infrastructure package and keep all 15 senate democrats and the vast majority happy with the package. the democrats are a big hand party. you have moderates who are saying that the bipartisan deal is the most important thing. you have progressive saying that climate change, the tax increase, that is the most important thing, so you have to keep everybody on both sides happy and is not an easy balance. haidi: laura davidson in washington with the latest.

let's talk about the market implications. always great to have you here with us. to what extent have markets really kind of >> in some sort of deal being done? there is a lot about how it will be funded, all of the other issues that did not make it into this deal and how they will come into play as well. who benefits from this, particularly when you take a look at asian scepters? -- sectors? >> it is important in the sense that it really reduces the downside risk. i wrote a piece a couple weeks ago in which i laid out a chart growth slowdown in the u.s. is really the thing to be concerned about, and if we are able to get this kind of fiscal stimulus through the dual track, i think that alleviates that concern considerably. given that the u.s. equity market tends to lead the rest of the world, the likelihood of the u.s. equity market that is

stable i think allows others to perform in my view is that in the second half of the year, the laggards will become leaders and i think, particularly in the asian context, that means japan has an opportunity to start to move here. as the global economic recovery moves into a synchronized expansion as we exit 2021 and go into 2022. haidi: what drives that interest in japan? we see further divergence when it comes to, you know, economic policy making, when it comes to move very much. is it really based on external demand? jay: the narrative about japan is about to change. for the last several months, it has been poor vaccination process, inability or questioning around the olympics, and i think that is changing pete already, you see the

vaccination process has accelerated. the olympics are going to be held. japan is one of the only major economies where it's composite pmi is still under 50 and the others are peaking. the u.s., europe, etc., china has already peaked, so there's a lot of upside as the economy reopens in japan and service sectors start to move, and then you have the traditional benefits of japan. very cheap market. trains at a 70% discount to the u.s., completely under owned, and now you have a currency with the yen. it is a cyclical market, as we all know. actually, the number of positives that you can put together and talk about japan are quite significant. and one of the things that this market has shown us is that it tends to move ahead of the news. so europe has been one of the best-performing regions in the world in the last three months to six months even though the economy is just starting to reopen. i expect the same kind of

activity in japan and its investors look around the world for places that have not already demonstrated a significant increase in equity prices. japan is flat on the year so it certainly qualifies on that basis. shery: when it comes to other markets, especially developing economies, where we are now starting to see inflationary concerns start to filter through into monetary action, this dtv chart showing how inflation just accelerated in mexico and then they have to raise rates today surprisingly against all 23 economists that predicted that they would hold. could this really be a headwind for the markets as we see more action coming from the likes of not only mexico but brazil or other latam countries and many predicting that the be ok will be the first in a -- bok will be

the first in asia? jay: i'm not worried about that. i am in the inflation is a transitory camp. i have been a big believer in the covid speed in the first in, first out, already have china growth. it is peaking as we speak. housing is growing overcome a liquidity is growing over. money supply is rolling over. this standard reopening allows us to not worry too much about inflation per se and i am quite bullish. you mentioned mexico. latin america, within emerging markets, is my favorite region, one of our largest over weights in my model portfolio, and i like both brazil and mexico, and i would just point out, as an example, in brazil, the currency has rallied fairly significantly in part because rates have risen and that is of course the

currency, but also because investors are looking these market the kind of reattach themselves, which is traditionally what happens and that has not been the case so far. a cyclical market typically moves with a global economic recovery and it has not really done that of yet -- of late because of concerns about covid, etc., so if these relationships reattach themselves as covid fades into the background, i think this is where the opportunities lie for investors. shery: the likes of beijing trying to clamp down on commodities prices and you have all of these economies tied to commodities prices. is that a concern? jay: no, not at all. the action last week, remember last week was a scary week in the markets. here we are, a week later, all-time highs in the u.s., and this market has an impressive ability to prick any little

bubbles that pop up. so having a little air come out of that environment is actually i think the good thing and i am very clearly in the camp of the commodities super cycle. we are in the very first innings of a run in the commodities space that's going to last for years. shery: always great having your insights, founder and principal of tpw advisories, jay pelosky. we are appearing that panasonic sold all of its tesla shares as of the end of march. panasonic will maintain that relationship with tesla but they sold the steak to fund the blue yonder deal. nikkei asia reporting move likely earned panasonic billions of dollars to find new strategic ventures. this coming at a time where they are keeping that relationship.

we have seen of course tesla gained ground with that e.v. package included in the infrastructure deal here in the u.s. we will be watching panasonic at the open in japan as well. for now, let's get over to vonnie with the first word headlines. vonnie: the bank of england has warned against premature tightening, pushing back against the speculation that it is preparing to boost rates to fight a surge in inflation. it contrasts with a sharp increase in the banks inflation outlook, which officials see peaking at 3%, and a half point higher than their forecast six weeks ago. officials voted to maintain the pace of bond buying and to keep the benchmark lending rate at .1%. the peso rallied after mexico unexpectedly raised the key rates for the first time since 2018. in a split decision, dehydrates 25 basis points to 4.25%, citing

a jump in inflation that policymakers described as transitory. inflation accelerated to more than 6% in june, far above the banks 3% target. texaco joins a small group of countries that have raised borrowing costs this year including brazil, russia, and turkey. pakistani security forces have arrested a man they say is a key suspect in wednesday's deadly car bombing in a city. the blast killed three people and wounded 25 near the home of a convicted militant leader linked to the 2008 mumbai terrorist attacks. the man was arrested at the airport as he was trying to flee the country. japan's defense minister says tensions between china and taiwan are a direct threat to his country's security. speaking to bloomberg exclusively, he expressed concern about china's military buildup opposite taiwan, saying the balance of strength is tempting in favor of beijing and widening every year.

his comments come after china sent 28 warplanes near taiwan in the latest increase of military pressure on taipei. >> geographically, taiwan is right and center of the china south sea. we are close to each other and that point of view, the stability of taiwan is directly connected to japan. we are closely monitoring the chinese-taiwan relationship and the chinese military activity. vonnie: global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: still ahead, we are speaking to the philippines central bank board member, anita, about female leadership and inequality in the financial industry. she joins us later this hour. coming up next, wall street's biggest banks clearing very easily those fed stress tests. we will have more on that and

the new department of justice probe into the archegos collapse. this is bloomberg. ♪

haidi: the fed stress test results are in. passing grades across the board for wall street. u.s. banks are poised to announce big payouts. not much of a surprise in terms of these results. nabila: not at all. the shareholders who were starved of dividends and payout last year, now is the time. the top six u.s. banks were expecting to announce on monday that they will be paying out more than 140 billion dollars and that is a record payout from these banks, heidi. haidi: our banks -- shery: banks are passing the test easily. what did the test find? nabila: it looked at a scenario

whereby unemployment would hit close to 11% and the stock market would be down more than 50%. the test found that all 23 banks that it looked at would pass with more than double the reserves required. the capital one offer. but morgan stanley was at the higher end and rated the best and you have goldman tax and wells fargo at the lower end. they were the closest to that capital buffer required. haidi: the regulatory pullout continues and we are talking about this doj probe. nabila: banks lost $10 billion from this collapse earlier this year and what we know, that all these banks helped provide leverage so that archegos could buy up big chunks of songs and then start selling when archegos could not meet the margin calls. some of the banks involved, among the biggest losers, n

omura, morgan stanley. what happened behind-the-scenes that ultimately ended up burning other shareholders as well, some of those stocks are down 60% since march, haidi. haidi: you can get more on the stress test results and other stories you need to know in today's edition of "daybreak." bloomberg subscribers can go to dayb on their terminals and it's also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

shery: we are counting down to the start of trade in tokyo and seoul. in japan, japan's -- the world's biggest pension fund is likely to post a record annual return

when it announces results next week thanks to a rebound in global equity markets in the wake of the pandemic. now, we will be getting tokyo inflation data at half past the hour and we will break those numbers as they come in and in an exclusive interview with limburg, the japanese defense minister says that taiwan's security is directly linked to japan and he spoke about maintaining maritime freedom. take a listen. >> japan, the u.s., australia, and india have free and shared values and they are responsible partners in the region. the effort are not aimed at any particular country but are based on common values. >> china filed a lawsuit against australia at the wto over measures australia taken against wind towers and kitchen sinks. the move further aggravate an already tense relationship between the two countries. let's bring tom mckenzie there

for more. this is already an ongoing dispute among these major trading partners, some part about throwing the kitchen sink in there as well. tom: i'm glad you went with that pun because i was tempted but you did it much better. of course as the relationship remains in a deep freeze, china is now taking australia to court, suing them in the wto over these tariffs that australia put on those objects or input -- imports for subsidies. it follows of course australia taking china to the wto answering them over tariffs on australian wine and barley and all of this started when the prime minister of australia arguably started a call for an independent probe into the origins of the coronavirus, of covid-19. china responded by putting

tariffs on australian: barley and wine and lobster and the two sides have not had a ministerial meeting for 2.5 years now. haidi: tom, there's a lot of australian lobsters that have been going to hong kong. is it just that hong kong residents are eating so much more in terms of australian lobsters? tom: that could be part of it. the prices have dropped so maybe there's more demand in hong kong. you have some pretty crafty importers of christian nations getting these lobsters from hong kong across the border onto mainland china and it is pretty remarkable and worth reminding viewers that up until the end of 2019, 20 20, china was actually accountable for about 90% of imports of australian lobster. 90% of australian exports of lobster were going to china. what you have seen is that hong

kong is now the number one importer of australian rock lobster and you have seen increases of 2000% so prices have dropped so there may be some demand in hong kong but there is a view that a lot of it is crossing the border in something of a grain trade area. shery: staying in hong kong, president biden weighing in on press freedoms. what has he been saying? tom: he has been hitting out the u.s. president on actions by the hong kong authorities not just to freeze the assets of apple daily but of course to arrest executives and editors and president biden came out and said it was a sad day media freedom in hong kong and around the world because apple daily ultimately was forced to close after 26 years. he also -- arrests, threats, and the national security law. he said: officials were suppressing media and trying to silence dissent and he demanded in fact that china and hong kong

officials stopped targeting independent journalists and release those -- carrie lamm has said in fact that part of the rationale for these arrests is to act as a deterrent to others who be thinking about stepping over the line when it comes to the national security law. we don't know where the mind bands or where the line is. on another front, in terms of trade, a bit more movement in terms of blight and to build out his trade team. the nominees for the undersecretary's of the ustr. jamey wright given testimony, saying it ought to continue to build these alliance with u.s. -- alliances with u.s. allies as a way to push back on china. we know that the biden administration is still going through and formulating its china policy and just reiterating, getting allies on board will be central to that. shery: tom mckenzie in beijing. here it a quick check of the latest business flash headlines. nike sales in greater china

slowed last quarter when it faced a boycott over its stance on alleged human rights abuses. revenue climbed 17%, missing analyst expectations above 37% growth. the athletic wear maker of soft sales almost double global lead to more than $12 billion as the economy is boosted directly to revenue in north america -- by record revenue in north america. the plan to bolster investment signals potential pressure on profit. spending would total $7.2 billion during fiscal 2022, up from less than $6 billion last year. after a banner year, fedex has been investing in efficiency. reliance industries will appoint the chairman of saudi aramco to its board as an independent director. this was announced at the annual shareholders meeting by the chairman as he expects to

finalize a $15 billion investment deal. , the latest on the tokyo olympics with the emperor. he says they should be concerned about holding the event whi ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity

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shery: we have breaking news out of japan. we are getting the tokyo cpi numbers you're on your flat, not a contraction, and really reversing that contraction trend that we have seen in the past eight months and of course, we watched the tokyo cpi because it is an indicator of customer prices for the rest of japan's economy. the core cpi, excluding fresh food year on year, also remaining flat, really coming in higher than expected because the expectation was for another contraction and all really returning to flat territory

instead of deflationary territory. we have seen this for 10 straight months for core cpi numbers. it excludes energy as well and it is flat that we are not in any rights movements in tokyo, which is still an improvement from the deflationary trend we have seen in japan in the past year. we have had rising commodities cost feeding higher gasoline prices at the pump and that of course helping when it comes to those price pressures in japan, now flat again as we continue to see the japanese yen not reacting that much, around the 15 month low against the u.s. dollar. let's turn to the olympics. kilter the news is reporting the japanese emperor is concerned the olympics could cause coronavirus infections to rise. it would be the first of their client on the divisive subject from the imperial household. our deputy tokyo bureau chief, sophie jackman, joins us for more. sophie, what else do we know about his comments? sophie: it is highly unusual

comment from the emperor by the head of his agency. it is so highly unusual for the emperor to comment on any issues of public debate because japan's constitution says the emperor is a figurehead, symbol of the public, and nothing more, does not get involved with politics. he has only been raining since 2019, when he replaced his father, who abdicated after 30 years on the throne, so he had a long time to study, and this is a first step for him in terms of deciding exactly what his role will be and how he will approach those responsibilities under the constitution. haidi: will his views change the game when it comes to these upcoming olympics? sophie: the olympics are going ahead. the central government and organizers are behind it.

what they are likely to do is empower those in the public who are opposed to holding the gains still or who have concerns about virus spread, and give that a nudge to the government, which is keen to avoid criticism for the general election in this bottom. the government and organizers have the option to declare a state of emergency which would hold the events without spectators. they still have flexibility on that so these comments do just give them a bit of a warning. this is how the public feels and you should take it variously. shery: there has been a lot of criticism coming from the public. are we seeing a turn around now that we are closer to the games? sophie: it is true that in recent weeks, as the event gets closer and the athletes start to arrive, public opinion about the olympics, which had been very negative, it's starting to turn around. more people are saying it's ok to hold them this summer, but they are keen for the measures that have been announced about

keeping the athletes isolated from the rest of the population, to be enforced stringently and i think they will come down hard on any breaches of those rules. it's worth noting that experts have said we could expect a spike in cases in august with or without the olympics. due to the recently relaxed regulations under the state of emergency and the fact that japanese people tend to move around in the summer holidays, go and visit family, and it is hot, so people are staying inside. it could opt -- add up to a spike in cases. haidi: howard deputy tokyo bureau chief, sophie jackman, with -- our deputy tokyo peoria chiefs, sophie jackman, with the latest. the bipartisan infrastructure deal being reached in the u.s. as well. the big u.s. banks easily passing the fed's stress test,

unlocking funds for potential shareholder payouts. let's take a look at new zealand, seeing modest positivity. we will see a pop at the open, .7 percent going into the start of trading in half an hour's time. in a poor trading of nikkei futures is also higher by .9%. we just had that inflation, those inflation numbers essentially not really changing the name of the game when it comes to the bank of japan or the inflation outlook. s&p futures seeming to stay in positive territory. one company we will be watching in the tokyo open will be toshiba, holding its shareholder meeting late on friday. the toshiba chairman will be seeking to convince investors that he deserves another chance to try and overhaul the struggling 100 45-year-old conglomerate. let's get the story from the tech reporter in tokyo. what do we expect today? pavel: for years and years,

toshibas shareholder meetings were such a sleepy affair, but not in the past two years. that is for sure. today, we are expecting a close vote for his survival in the office. several shareholders have come out against him, the sovereign wealth fund, state board administration of florida, but there are some who do support him. they have indicated they are going to vote for them. the largest shareholder. and they are the ones who prompted the examination of last shareholder meeting voting that sort of sparked the whole controversy. they have cast aside the corporate governance and board of directors and just said that the report basically showed the company is functional. shery: exactly.

given that report, what are we expecting his plan to be in order to rectify this? pavel: just a background, the report undertaken by the independent commission shows that the management of the company has worked hand-in-hand with public officials, trying to work overseas activist investors and sway the outcome of shareholder voting last year. he has only been chairman since july after the meeting that concluded last year. he has said that the board of directors has accepted the points made and will work to restore trust and transparency. he vowed to bring new board members. they dropped two existing directors from the list that the shareholders will be voting. but basically, he has argued that a change in the board right now is not what toshiba needs. what it does is meet a bunch --

it needs a bigger, companywide rebuilding. it points to his track record. being an outside director at sony. basically arguing that kicking him out right now would only incite more confusion, so the fun begins at 10:00 a.m. tokyo time and we are counting down the minutes. shery: our tech reporter there. coming out next, we are speaking to the philippian central bank board member about female leadership in monetary policy and equality in the financial industry. this is bloomberg. ♪ ♪

vonnie: this is "daybreak asia." president joe biden says -- deal on an infrastructure plan. the bipartisan legislation has support from senators on both sides of the aisle and it is expected to move through congress alongside a separate democrats only bill that would spend trillions more on what biden calls human infrastructure. it's not clear whether either measure will gain enough support to clear the house and senate. pres. biden: this bipartisan agreement represents the largest

investment in public transit in american history and, i might add, the largest investment in rail since the creation of amtrak. you all know that i have nothing but affection for amtrak. vonnie: banks that worked with archegos capital are under investigation by the u.s. department of justice. investigators are seeking information from some of the top blenders -- blenders. we are -- top lenders. former new york city mayor and top lawyer, rudy giuliani, has been banned from practicing law in new york state for eyes he told about the 2020 presidential election. in his ruling, a manhattan appeals court says giuliani put the public at risk by making misleading statements to bolster the narrative that the election was stolen from donald trump.

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: bloomberg equality features conversations that focus on the inequalities including race, ethnicity, gender, and income. how these disparities impact people, businesses, economies, as well as the tools to address them. we are focusing on gender equality and monetary policy. kathleen haynes, who do you have for us? kathleen: i am so pleased to introduce anita aquino, the newest member of a monetary policy board and she has an impressive 30 year career in banking, finance, the public sector. we are going to walk through all these roles she has played, with a special look at women and how a woman like her has climbed the ladder. it's great to see you again. anita: good morning, kathleen.

thank you very much for having me. kathleen: it has been a turbulent year for you. let's go back to the beginning of your career when you were at the far east company, finance corporation, starting out -- young person come out of school. he went to portland university. what was it like getting your foot in the door? was it a different world? was it hard for a young woman like you to say i am here and serious about moving ahead? anita: yes. during those days, for women, it was tough to get into banking, i would say. basically, it was a different world at the time, and then i moved on to working for a multinational company bank, which is citibank, and from then on, i moved on to work for a british bank. interestingly enough, i ended up

in financial markets. at the time, the world was basically led by men. leadership roles were men and one had to make sure that you put in -- you put in your two cents worth to have your voice heard. at the same time, you have to build in your reputation that you do deliver it. what is quite interesting is that when i was in the local bank -- one could also see that there were also women moving up into the leadership role. what is quite interesting is that over 20 years to 25 years, the private domestic banks are filled by men.

what is also quite interesting is that in the boardrooms, we see women overtaking. kathleen: you mentioned starting in financial markets. i know people have tried to make trade agreements more genteel. a lot of men come a lot of yelling, lot all kinds of language. was that tough? one of the things that helped you deal with that very rambunctious environment? anita: that's a very interesting environment. you do have to also work within the particular environment. shouting, that was normal during those days. say what it is. i work with my clients. try to hustle your way through the noise. and really, at the end of the day, what is most important is

that you get them to respect you. you make sure that as you carry on the conversation, as you go up into the senior roles, you have to make sure that your ideas also make a lot of sense and value added into the conversation. kathleen: you also have said that you have a lot of men who were mentors. a lot of people look at men who stand in women's way. was that unique particularly to citibank? do you think other women nowadays get that kind of help? anita: during my days, most of my members were men and also my bosses at the time were mostly men, and i am always grateful for the fact that these men are the ones who figuratively opened up the doors for me. to get into more senior roles. and i think this conversation with having men as mentors has

definitely paved the way for women in financial markets, especially where i have seen from the 1980's to where it is right now. kathleen: how important is it that jane frazier broke the glass ceiling at citibank? is that optics or does -- you just said that there is a difference between who is really getting ahead of the bank and running it and who is on board. anita: i would always be grateful to citi. one thing that citi had for me during the 1990's was the fact that they made sure they were -- there was a mentorship for women to grow into senior roles. i could see that this program for women leadership was there. i was not a bit surprised when they were the first bank to do that. kathleen: you joined them in

july of next year. one of the worst economic crises that the world or the philippines has had. how did that test you and your experience, rising through the ranks and finance? were there new lessons you learned as a female to try to take her place and take her role? anita: it is quite interesting in terms of my career journey. when i assumed my appointment last year, i looked back and i would say the trainings i had, in my -- and my experiences during the 1997 asian crisis and the 2007 global financial crisis paved the way for me to take on this role and i think, having gone through the crises of the past, my experiences serve me well. quite interesting as well in the board, my board members, they

are all men who have had decades of experience. during this time, i would think, having the say on the value add in terms of the conversation, coming up with policies, it is a big step for women right now. kathleen: quick final question. you are the first female banker to be appointed to the bsp board. what advice, in a nutshell, do you have for other young women now who are looking at finance, who are looking at central banking? anita: good thing. work on crafting your own playbook. never be afraid to make mistakes. try to have a good mentor. listen to your heart and do what is good for you. and that is at the end of the day the keys to success. kathleen: thank you so much, anita aquino, bsp monetary board

member. we look forward to speaking to you someday about monetary policy. we shall see when that comes. shery: we have plenty more coming up here on "daybreak asia ." we are going to be here and from panasonic as well. this is bloomberg. ♪ -- healing from panasonic as well. this is bloomberg. ♪

shery: panasonic reportedly sold

all of its tesla shares at the end of march to fund a $6.5 billion deal to buy american ai software firm blue yonder. according to nikkei, the stake would have been worth several hundreds of billions of yen although the exact amount was not specified. we spoke to panasonic's new president and ceo, who discussed the acquisition of blue yonder and his two-year mission to streamline operations and fuel growth. yuki: [speaking japanese] >> panasonic has many different kinds of businesses. i would like to ensure the existence of each one is welcomed by customers and society in general. that is the concept our founder aimed for when he started the business, and i would like to focus on that concept again. >> in april, it was announced panasonic will make blue yonder a fully owned subsidiary

in one of the largest acquisitions for panasonic. what do you see this bringing to panasonic's long-term competitiveness? >> it was widely reported as an expensive acquisition. we did not purchase it because it would bring returns. we have a business that will become panasonic connect in 2022. by joining blue yonder with panasonic connect's technologies and innovations, we will be able to improve our supply chain management as well as the company site that are part of those supply chains. we will be able to become a company that offers those kind of unique solutions. that is the whole point of acquiring blue yonder. the idea is not only to improve our customer sites, but also our own companies. we are not aiming for a specific return in a specific period of time. rather, we are looking to increase our competitiveness and eliminate inefficiencies in the overall supply chain. we also took esg into account when deciding on the operation.

it will decrease electricity usage and carbon emissions. >> panasonic provides batteries to tesla. in regards to this business, how central do you see it to panasonic's growth in the future and within this rather competitive industry, what kind of strategies are you considering? yuki: [speaking japanese] >> battery unit will be one of the central segments of our energy business. we believe it will contribute to the environment and we intend to see it grow further. competition within the industry is quite fierce but the battery business is making extremely large facility investments. it's important to work with manufacturing techniques to produce batteries in low-cost facilities. refining this ability, along with further investments, will give us be competitiveness to grow further. with the next generation of batteries, we aim to grow by not only producing high-quality batteries, but also by making

the production procedure more efficient and competitive. while improving the competitiveness of our manufacturing, we will continue to challenge ourselves and grow. river: what are the -- one of the experiences you had was taking a look at the automotive solutions business and turning it profitable. what did you learn from this experience, and going forward as a ceo, how do you intend to use that? >> i said i will focus on strengthening competitiveness over the next two years and this concept is based on my experience in leading our automotive solutions. no matter what kind of sales -- if you don't have the capacity to meet your own targets, you might end up receiving orders you cannot handle, so we need to remind ourselves that the starting point is raising our on-site capabilities. that will eventually lead customers to choose our products and services and as a result, our company will grow and it will be -- we will be competitive in the industry. haidi: yuki kusumi speaking with bloomberg's river davis in

osaka. let's take a look at some of the stocks we are watching going into this friday trading session. sophie: no surprise, in light of the deal being put in place, we are keeping an eye on machinery and metals makers, construction equipment producers here in asia. the likes of hitachi construction. this as we anticipate that it will lift that recovery demand in infrastructure when it comes to these types of players today. haidi: coming up, we hear from crypto financial services firm, group, valued at $1 billion. their cofounder and ceo joins us to discuss china's crypto crackdown for the technology and more. we have the market opens coming up in the next five minutes or so. sydney, seoul, and tokyo are set to open. we have this wave of green expected, positive sentiment driving this friday session as we have worse are pricing in the

infrastructure deal as well. and the fed stress test being passed by u.s. banks. lots more to come. this is bloomberg. ♪

>> welcome to "daybreak asia. >> we are taking a look at the major markets opening across asia. asian stocks are poised to end the week on a positive note. u.s. shares hitting a record as president biden's infrastructure deal lifts sentiment. wall street banks set for a

deluge of dividends and buybacks after they cleared a stress test. china's crackdown on the fintech sector is leaving a trail of lost profits in its wake, good news for state backed lenders. let's get to the market open in seoul, tokyo, and sydney. >> the nikkei backed by 29,000 points, set to gain ground with of the topics as well as the upside. momentum coming back in japanese markets in waves. the yen still eyeing that 111 handle, set for the biggest loss in a year for the japanese currency. when it comes to south korea, let's see how we are set for the open there. the government looking towards second-half economic policy update next week. the kospi above 3300 points this morning. also indicative of how growth has been a theme. u.s. yield have stayed below on the 10 year the korean won

seeing gains against the greenback. the be ok could be the first central bank in asia to hike rates this year. in australia we are seeing the asx gain zero point 1% while the aussie dollar is holding steady. commodity currencies have been in play given the moves we have seen in the commodities patch. iron ore in focus. when it comes to oil you have brent holding steady, but we have oil set for a weekly gain with the focus turning to the upcoming opec-plus meeting. s&p gaining ground after we saw records on wall street overnight. >> still pretty range bound. our next guest says the market seems to be waiting for a catalyst to expand from range bound trading. inflation remains key. joining us is an investment director at fidelity international.

could the catalyst be to the downside given we are seeing more tightening moves around the world, whether it is mexico's surprise rate hike or the be ok -- the bok signaling normalization? >> they are all looking at the recovery. the strongest recovery we have seen is in china, especially coming out of covid. we should not be overly supplies -- surprised at the change of link which we are seeing -- language we are seeing. the pboc is eight to nine months ahead of other central banks in terms of where we are from a policy perspective. when we look how much stimulus the pboc injected, it is roughly 6% of gdp versus 30% in places like the u.s. or europe. that is what the market is focusing on, about when we are going to see a foreign policy change.

>> the markets deciding whether to go with cyclicals value or growth. we really don't know where central banks are headed, especially across asia. how do you position? >> exactly. with recent fed commentary, the market interpretation has been somewhat confusing. if we would see earlier than expected tapering, it should be a high discount rate. it does not explain the flattening of the yield curve, or for example, the market concern about premature tightening and tapering. the market should be taking a risk off approach. this is not the case. again, this is a range bound area waiting for further news. the fed and the market itself is waiting to gather more information about inflation,

whether it will be transitory or more permanent. >> how much concern should there be over disruption, the fracturing nature of the slowdown and whether we are going to be able to see the other side of the recovery in a consistent way? >> it is on the back of the vaccination success. not seeing any further variants emerge. post-covid, it has challenged the single market dynamics, i.e. easy money, low growth environment, low interest rate environment. it is that point about the markets being a little confused about this abnormal situation we find ourselves in. >> in terms of the pickup in commodity prices, how does that

flow through to very popular players when it comes to mining names? >> because we are seeing demand pickup, a lot of the corporate's we have been speaking to have confirmed higher input prices. in this kind of market, the names you want to be exposed to are those names in commodities that can pass prices on to the end consumer. that feeds into the argument about whether inflation is transitory or more permanent in nature. we are of the camp it is more permanent. >> financials have been the big winners this year as we continue to see that rotation to cyclicals. do they have more room to continue rising? >> when we look at historically, let's take china as an example, when we see this kind of rotational growth, the value, we start seeing cyclical value

first. then as a category you see financial names. the banks have done well. the final stage of the rotation, more traditional values, utility, telecommunication. the market is quite choppy and volatile. we were going through that growth of value. now we seem to be going back to growth. ensuring the names -- the portfolio have that certainty, the pricing power. good market share and strategies that can be executed, implemented. >> great to have you with us. catherine yeung. let's get to a look at the movers. taking a look at names that could benefit from the infrastructure deal in this part of the world. >> that is the case, things like komatsu gaining ground. komatsu gets over 36% of its sales from the americas. hitachi construction driving

revenue from the united states. in so we are seeing names like bobcat gaining ground, it gets 79% of its revenue from north america and oceania. we are seeing a lift for asian machinery and materials players. switching out the board, these are some footwear or at least supply chain makers related to nike. a6 and ms. uno gaining ground -- asics and mizuno gaining ground. panasonic gaining ground on a report that it sold its tesla stake. we have that $3 billion deal to buy ebay korea on the radar. >> let's turn to vonnie quinn with the first word headlines. mexico moving. >> exactly. an unexpected rates raise,

mexico raising the key rate for the first time since 2018. bankers are hiking rates 25 basis points, citing a jump in inflation policymakers describe as transitory. inflation accelerated 6% in june, far above the 3% target. mexico joins us tomorrow -- joins a small group of countries. the bank of england has warned against premature tightening, pushing back against speculation it is preparing to boost rates. the remarks contrast with a sharp increase in inflation outlook with officials now see peaking at 3%. officials voted to maintain the pace of bond buying and kept the benchmark of lending rate at 0.1%. security forces have arrested a man they say is a key suspect in wednesday's car bombings and the city of lahore.

officials say the man was arrested at the airport as he was trying to flee the country. japan's defense minister says tensions between china and taiwan are a direct stress to his countries security. -- country's security. he expressed concern about china's military buildup saying strength is tipping in favor of beijing and widening every year. the comments, week after china sent 28 warplanes near taiwan in the latest escalation of military pressure on taipei. >> geographically, it is only 110 kilometers from japan's westernmost island. we are very close to each other. from that point of view of of the stability of taiwan is connected to japan. we are closely monitoring the chinese-taiwan relationship and

the chinese military. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. >> china crushed jack ma and his fintech rivals maybe next. we discussed the winners from beijing's crackdown on internet monopolies next. plus china is tainting cryptocurrencies. -- tightening cryptocurrencies. ♪

>> wall street's biggest banks easily cleared the fed's stress test. let's bring in our asia finance reporter. shareholders expect a big payday. >> a nice bit of news going into

the weekend for shareholders. the top six u.s. banks are expected to pay out more than $140 billion over the next year which will be a record number for them. >> some banks were weaker than others. what did the test find? >> the test looked at 23 banks and how they would cope in the event of severe economic downturn. we are talking about unemployment rates near 11% and share markets down 15%. what the test found was that most banks actually -- actually all banks would pass with flying colors, they would have more than double the capital buffer required. morgan stanley performed the best while goldman sachs and wells fargo were towards the other end of the requirement. >> which aspect is being -- >> this has been a pain in the neck for banks.

u.s. banks lost $10 billion on the collapse of this hedge fund earlier this year. basically they helped archegos by providing leverage in stocks like viacomcbs, discovery, and when bets turned sour and rk ghosts could not meet the call, they had to unwind their position. with the doj is looking at is what happened. the stocks collapsed quite quickly and burned other shareholders. we have about 60% down on viacomcbs and discovery. separately the sec is looking into whether there should be a disclosure rule for a fund like archegos capital management so that the market is less than the dark. -- less in the dark. >> it has been eight months since jack ma pushed back against chinese authorities,

plans for a blockbuster ipo. by conservative estimates, he has lost $70 billion since then. his fintech rivals may be to come under pressure. joining us to discuss this, lulu chen. what are the latest developments we are hearing? >> sources are telling bloomberg the nation's top financial regulators are now demanding regular updates from chief executive officer eric hsing and his staff on the process of the overhaul at the company and also new initiatives must be vetted by officials. we have also been told authorities have discussed installing a government representative among its senior executive ranks to keep tabs on the company. >> if you are any other chinese

fintech company, you would be thinking you are next, right? >> it is already starting to happen across the board. regulators have told tencent it needs to set up a financial holding company that will be regulated more like a bank. regulators have held talks with 13 companies, telling them they also need to follow the same rules. right now if you look at smaller competitors like jd.com, they are no longer pushing further into fintech. they are waiting for clearer instructions from authorities before they make further moves. >> who are benefiting from all this? >> it is a golden opportunity to move into a market they have struggled with, to acquire more users and assets. china state banks invested a

total of $31 billion in fintech last year. if you look at the world's largest bank, they are spending -- their spending jumped and brought 800 people in. china's retail banking leader, shares are up 60% since the ipo suspension. it is moving into -- >> lulu chen. you can get more context on china's crackdown on tech giants. on the bloomberg technology channel on youtube. coming up next, details on the chinese ride-hailing giant's plan for raten -- foreign ipo -- plans for an ipo. ♪

>> chinese ride-hailing giant looking to raise as much as $4 billion in one of the biggest u.s. initial public offerings of the past decade. what else do we know about this ipo? >> it is actually smaller than expected. the figures bandied about at some point were going up to 10 million dollars of fundraising, but the valuation is also lower at the lower end of the range. didi had been looking at a valuation of up to $100 billion but it is going to be about $60 billion based on outstanding shares. it is still one of the biggest initial public offerings of the decade for sure. but it is a little bit smaller than expected.

a little lower than they had been reportedly aiming for. >> do we know why we are seeing muted reaction? is it because of the regulatory risk? >> it could be the regulatory risk. also quite a risk -- a rich valuation. most chinese tech companies have the regulatory onslaught, china started a probe, antitrust probe into business practices. didi was among the 34 companies ordered by regulators to correct . it might be causing investors to be cautious given what has happened with other companies.

risk remains. it might also be caution around high-growth tech companies with valuations given the creeping inflation backdrop in the markets. >> panasonic reportedly sold all of its tesla shares at the end of march to fund a deal to buy american ai software firm blue yonder. the stake would have been several hundreds of billions of yen although the amount was not specified. we spoke with the new president and ceo who discussed the acquisition of blue yonder and his mission to streamline operations and fuel growth. >> panasonic has many kinds of businesses.

i would like to ensure the existence of each one is welcomed by customers and society in general. that is the concept our founder aimed for. >> in april it was announced panasonic will make blue yonder a fully owned subsidiary for upwards of $7 billion in one of the largest ever acquisitions. what do you see this bringing to panasonic's long-term competitiveness? >> it was widely reported as an expensive acquisition. cns will become panasonic connect. by joining blue yonder with panasonic connect technologies and process innovations, we will be able to improve supply chain management as well as the company sites that are part of the supply chains. we will be able to become a company that offers unique solutions.

that is the whole point of acquiring blue yonder. the idea is not only to improve customer sites, but also our own cost -- our own companies. we are not aiming for a specific return. rather we are looking to increase competitiveness and eliminate inefficiencies in the supply chain. we also took esg into account. optimized site operation enabled by our solutions will decrease electricity usage and carbon emissions. >> panasonic currently provides cylindrical batteries to tesla. how central do you see it to panasonic's growth in the future? within this rather competitive industry, what strategies are you considering? >> battery unit will be one of the central segments of our energy is an is. we believe it will contribute to the environments. we intend to see it grow further. . competition is fierce but the battery business is making large

facility investments. it is important to work with manufacturing techniques to produce batteries in low-cost facilities. refining this along with further investments will give us the competitiveness to grow further. with the next generation of batteries, we aim to grow by not only producing high-quality batteries, but also making the production procedure more efficient and competitive. while improving the competitiveness of our manufacturing, we continue to challenge ourselves and grow. >> what were the experience -- one of the experience you had was taking another look at the automotive solutions business and turning a profitable. what did you learn from this, and going forward, how do you intend to use that? >> i set i will focus on strengthening competitiveness for the next two years, and this concept is based on my experience leading automotive solutions. no matter what kind of sales and profit targets you come up with, if you don't have the capacity to meet your own targets, you

might end up receiving orders you can't handle. we need to remind ourselves the starting point is raising on-site capabilities. that will lead customers to choose our products and services. as a result, our company will grow and we will be competitive in the industry. >> a quick check now of the latest business flash headlines, tesla supplier dancing lithium says prices could be pushed back toward a record high. the company is aiming to capitalize on lithium's rebound from a more than two-year slump that ended in september. the company will set up step up exploration for resources as demand for battery-powered vehicles and renewable energy storage grow. reliance industries will appoint the chairman of saudi aramco to its board.

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>> is "daybreak: asia." i am vonnie quinn with the first word headlines. president biden has reached a tentative deal on the infrastructure plan. the bipartisan legislation has senators from both sides of the aisle on board, and is expected to move to congress alongside a bill that would spend trillions more on human infrastructure. it is not clear whether either measure will gain it enough support. >> this bipartisan agreement

represents the largest investment in public transit in american history, and i might add, the largest investment in rail and armored truck. you owned i have nothing but affection for armored truck. >> new york city mayor and trump loyalist rudy giuliani has been banned from practicing law in the united -- in new york state. in the ruling, in manhattan appeals court says he put the public at risk by making false and misleading statements to bolster the narrative that the election was stolen by his client -- from his client, then-president trump. banks which worked with archegos capital are said to be under investigation by the u.s. justice department, seeking information on top lenders to examine how they handled some of his multibillion-dollar trades. the doj is probing with other banks scuttled the possibility

of moving stocks from the portfolio. global news, 24 hours a day, on air and on bloomberg quicktake, powered by over 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: china has filed a lawsuit against australia at the wto over measures australia has taken against chinese railways, towers and kitchen sinks. the move aggravates an already [tense music] relationship -- an already tense relationship. paul: this collection of objects was made for the media, but the kitchen sink dates back to 2015. the wind tower this. they 2014 -- australia put tariffs on both chinese and south korean towers. the korean ones were lifted and the chinese ones remain in place.

the trade minister says that these measures were only put in place after extensive research and analysis by the chinese side are not happy, now taking australia to the wto. a spokesman from the foreign ministry in china pointing out that austria has launched more than 100 investigations against chinese products, by china has only launched 4 against australia. one of those four were on wine. australia has taken china to the wto over those two trade strikes . these disputes take a long time to settle, usually between 2-4 years. the trade minister saying he prefers to settle with the counterparts because that would be much quicker. he still has not heard back from

china, and it has been two and a half years since any minister had contact between the two countries. shery: australian experts were hit by chinese trade action as well. are they finding their way back into the country again? paul: it appears so. it has been an interesting development on the lobster front. part of a soft trade strike against australia. live lobster imports were getting held up, they were sitting on the tarmac, often perishing, as china was concerned about traces of heavy metals. there is evidence that australian lobsters are now entering china through hong kong. here is a statistic, lobster exports to hong kong growing by 2000 % between october and april. hard to believe that hong kong residents are eating 20x as much as trillion lobster as they were eating before, we especially when you compare it to data that fish imports from hong kong grew to just half $1 million -- from

half $1 million to $10 million in april. it appears there is a greater market trade going on. shery: paul allen in sydney. a quick check of the market right now. the nikkei gaining ground. gains in the real estate and materials sector, not surprising given the japanese yen is weaker against the u.s. dollar also, having to do with the infrastructure trade, after the deal in the u.s.. japanese construction gaining ground at the moment. same for the asx 200. materials companies are leading. the aussie dollar now under a bit of pressure, holding steady under seeing the weakest trend against the u.s. dollar when it comes to the second quarter. we are also watching kiwi stocks at the moment. coffee is up half a percent.

markets across asia are watching closely, all the fed speak we had this week after the hawkish turn from the federal reserve last week. former new york fed president and bloomberg opinion's columnist mr. dudley now saying that the fed is likely to remain patient as the economy recovers. he told us he expects asset purchases to continue for some time. >> the fed is not going to stop there asset purchases quickly. they will probably continued into the fall. and then when it finally decides to normalize its balance sheet, the balance sheet is no big now that it will take a long time to get it back to the 1.5 trillion of excess returns we had prior to the pandemic. i think we have a system where the interest rate is the primary tool of monetary policy.

>> i understand the agreement that the fed wants to go on with their monetary policy, to simply allow inflation to pick up and allow employment to get to a better place. however, people have. -- however, people have pointed to areas such as the housing market. [indiscernible] >> that fred had just acknowledged that they made further progress towards their goal. they would change their expectations. ellen think it'll be important the narrowness of the housing market. >> is that the preferred method? >> i don't think they're going to do it. they will be pretty patient. >> whatever perhaps may be more of an equal weighting taper.

2013, the discussion of 5 billion in treasuries and 5 billion in mps, is that an easy path to go? >> you have a template from the last cycle and to deviate from that template, you have to have a good reason. i don't think they have a good reason. to deviate from what they did last time raises questions why? >> what did we learn from this time around? we reduced asset purchases and eventually as we had some balance sheet reductions several years later? >> i think it went, in all fairness, smoothly once the fed communicated what the sequence was going to be. first we stopped the asset purchases, taper the asset purchases down, then we raise short-term rates, then we finally start to normalize the balance sheet. this time the market has a template, last time they didn't, there was more uncertainty about what the fed was going to do. i think it is one reason why the

markets are comfortable with what the fed is up to. >> do you think there is too much fed speak at this point? there is a fed official at every hour speaking. >> there is never too much fed speak. [laughter] the only people to pay attention is the chairman, the vice chairman of the board of governors, so powell, clara and williams. >> are you saying ignore the fed president? >> i wouldn't say ignore the fed president, they are just one member of the three. [laughter] the big three set the agenda for the committee. the committee will not do something unless those three people are on board. i would not say ignore the fed presidents, but don't put too much weight on what one individual president might say. >> so much conversation inside the federal reserve, when you have those meetings, the likes of governors pushing back, how much do they influence the

conversation? >> they influence the conversation because they offer a diversity of views, diversity of backgrounds. important in policymaking. but at the end of the day the committee will go where the consensus is. if someone is always dissenting, they marginalized themselves. right now there is disagreement about when should we start to taper asset purchases, because people are uncertain about the state of the recovery and how fast it will -- into unused labor resources. there is disagreement about timing. but the people that matter are william clarida and jay powell. they are the ones that will determine everything. >> that was the former new york fed president bill dudley, speaking to lisa abramovich and jonathan ferro. next, we will hear from a crypto services firm, after

fundraising. the cofounder will tell us what he plans the fund, that has gained unicorn status. this is bloomberg. ♪

>> take a look at how some crypto assets are trading at the moment. not a lot of movement when it comes to bitcoin, after the

recession of gains. we have seen it grain -- after three sessions of gains. we have seen it gain ground, but you have to put it into context after we saw the halving of the price from $65,000 in april. ethereum, we continue to see it outperform other cryptocurrencies. citigroup launching a crypto and blockchain unit within its wealth management division. despite. the route in may, cryptocurrency's total market value still up 400% over the past year. haidi: really need, the broader context. amber group is a crypto financial services firm, with over $2 billion in asset management. there latest funding round got $100 million from backers. joining us is michael wu,

cofounder and ceo of amber group. i am wondering, what are you going to use the find, how are you going to deploy that? do you hope that this latest round of fundraising, some of the names now being associated as investors, will hopefully attract more traditional interest? michael cohen 90 for the question. -- michael wu? justin: thank you for the question. that was has been very fortunate to be profitable early on. especially in the last few quarters or so. the fundraising was really not about putting money, it was rather to bring traditional investors in so it helps the crypto adoption more broadly and helps to put amber group platform in front of customers that are either new to crypto or still waiting to enter crypto. as regards the fund --

haidi:: going to say, we have seen a lot of head scratching as to where cryptocurrencies, bitcoin, go from here. a lot of it is existential about what happens with the environmental issue, the regulatory issue in china, i am curious how you think this is going to play out. michael: crypto is a global asset from day one. as a crypto entrepreneur, you have to deal with regulation, regulatory frameworks and sometimes regulatory shocks from all different jurisdictions. this is not new. as regard to the china regulation policy particularly, i think clearly it impacts the short-term sentimental about. people are reacting to it. the market was correcting even

before the news came out. people are more likely to overreact to certain shock like that in a somewhat bearish market. but i think nothing has changed with the fundamentals of bitcoin or the fundamentals of crypto finance. we are still looking at a very young and promising asset class, still looking at a technology that enables much more seamless and frictionless natural services -- financial services. shery: i mentioned earlier that citigroup had launched a blockchain unit. we have seen banks still steering clear of offering access to cryptocurrencies. are you expecting more institutional acceptance here? what will it take to get there? michael: i am not only expecting, i am seeing more and more institutional adoption, day-by-day. but it will take some time and it will be baby steps for them.

crypto market infrastructure is different from traditional financial market infrastructure. it will take them some time to understand the differences, a lot more time, i guess to adapt their internal procedures, their infrastructures so they can offer crypto competitively and in a secure way. there are firms like amber group meanwhile, who are working to fasting that process and with much more expertise. shery: digital currencies, the digital you on and the digital dollar coming up -- the digital yuan and the digital dollar, what about them coming into the market? michael: they also into the broader definition of crypto assets. they may not be decentralized,

that it is still programmable. it has a contract features not too dissimilar from ethereum. at one point you will have interactions between all these centralized cbdcs, we called them, and the centralized crypto protocols. eventually everything is data in the digital world, and data can be securitized. it can become assets. data can transact with the ecology of crypto finance. shery: michael wu, cofounder and ceo of amber group thank you so much for joining us. be sure to tune into bloomberg . listen via the app, radio class or "bloomberg real yield. plenty more ahead. stay with us.

♪ >> being a boutique property developer, we know who will never be able to compete against large developers, not that we want to. therefore, our advantage might be in innovating. i don't think they first saw that i was going to take it outside of just property

development into co-working and into fitness and wellness. shery: that was the aurum group ceo and director. catch more of that interview on "generation next." the nikkei is reporting that panasonic sold its shares in tesla before the end of march and would not say where it got information, estimates that the stock would have sold for nine times what it was about four, returning a profit of several billion dollars. nikkei says panasonic will use the money to finance ideal while continuing to supply batteries to tesla. ebay will sell 80% of its south korean marketplace local retailer emaar. it is the latest in a series of asset sales aimed at overhauling the e-commerce company.

the business yields more than a tent of ebay's global revenue and is seen to reshape the fast-growing korean online shopping arena. ebay korea command a 12% market share. more details have emerged about didi's plans to invest in the u.s.. the chinese right hailing is looking to raise $4 billion in its ipo. it is marketing american depositary shares from $13 to $14 apiece. the company would have a market value of more than $60 billion, well below the valuation of 100 billion dollars reported by bloomberg in april, suggesting that investors bought -- balked at the price tag. that got so excited about the bubble tea. [laughter] haidi: a new it. this is a chinese chain raising

$60 million after pricing it's hong kong ipo at the top of the market, the latest of the resurgence of listings, to take over luckin coffee failed. joining us is a bloomberg opinion's columnist. we heard this before. even starbucks when it was first expanding in china, the ambition to return two records into coffee drinkers. candy turn in nation of tea drinkers into bubble tea drinkers? >> absolutely. we're talking about the chinese not having enough children, but still, china has 250 million generation z, and 350 million millennials. so everyone will keep trying. this is a huge market. shery: as much as we love bubble tea, it is nothing new. what is so special about this now?

>> this bubble tea is a little different. more high-end. instead of the tea they -- instead of the tea powders, they have freshly made tea, sometimes with whipped cream on top sometimes with fresh fruit like strawberries and mangoes. bubble tea can taste like a liquid strawberry cake, let me put it this way. also, young people seem to like the cheese topping bubble tea better than the traditional cap -- traditional cup. haidi: i just think bubble tea is milk tea and tapioca. it the premium aspect the topping, or it is likely to fixate more than luckin coffee?

>> for these bubble teas, they will cost like 20 or 30 -- which is about the same price as perhaps a starbucks latte. for these bubble tea unicorns, it is easier for them to break even at the store level than luckin, a $10 cup, it is harder to break even. shery: let's switch to sophie for the stocks to watch. sophie: on the optimism around the u.s. infrastructure plan, we are going to see if that can lift e.v. stocks. we are also keeping an eye on suppliers in the region after the company boosted record revenue in north america for the quarter for nike. we saw growth slowed in china. we are expecting an beach going forward.

this company, stella international, derives 30% of its sales from nike. ever grand, shares of 10% this week, the best in eight months, after surviving another cash crunch. the stock hit a peak in may. sheri: coming up, we will get more insight on president biden's infrastructure plan in the u.s. economy with a research director. that is good for "daybreak: asia." our coverage continues as we look ahead to the start of trading in hong kong, shanghai and shenzhen. standby for "bloomberg markets: the china open." this is bloomberg. ♪

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>> happy friday. it's 9:00 a.m. in beijing and shanghai. i'm tom mackenzie. yvonne: i am yvonne man. our top stories, equity gains fueled by economic optimism after a bipartisan u.s. infrastructure deal. the optimism is expected to spillover to the chinese tech stocks. tom: china is taking a different policy path towards the u.s.