haidi: daybreak asia, i'm haidi stride what's in sydney. sophie: we are counting down the major market opens. shery: our top stories this hour. cryptocurrencies surge as markets short off regulatory concerns. drinks from one of mexico's richest men say the bank is on

the way to accepting but going. the economy is showing signs of a rebound expansion. and, millions grapple with increased. states finalized -- states struggle to finalize rescue packages for business. haidi: sophie, what are you watching? sophie: asian stocks had a costly hit, a fresh record high on friday. we are seeing moves for futures in asia. kiwi stocks under pressure. kiwi and aussie dollars on the back, it has been imposed on sydney. new zealand officials, saying they are not out of this yet. we are seeing markets pricing and for more than 50%. with that, pulling up the chart

of the terminal, central banks of the u.k., canada, south korea and others among those with stimulus exits. they are signaling they will likely keep steady. overall, a gradual is expected. jp morgan predicting that lower rates flattening to the end of the year 21 28 from 127. shery: the key question is what happens to market volatility in the meantime. we are also watching bitcoin. in focus after the latest regulatory hit. the u.k. betting crypto exchange of operating there. the company says it not -- has not operated in the u.k. yet. let's bring in drama, we continue to see diverging views when it comes to cryptocurrencies. this latest on the crypto crackdown, at the same time, and mexican billionaire now

endorsing the asset. >> right. anytime you have something or somebody says they are looking to further adoption of crypto, that does chair the sector. regulation is not necessarily bad for it. it can encourage more people to get in. we have this notice will the u.k. this weekend, and japan is also caught it -- is also cautioning as well. regulators are looking at the system at this point. haidi: this is kind of incremental, what does it mean to the broader regulatory outlook of the crypto industry? >> it could be beneficial in the long term. if you have regulators coming in and saying what can be done and implementing protections, it would be a huge change for the industry. near-term uncertainty and it

could also encourage institutions and individuals to get in if they feel it is safer and they are more protected. shery: china continues to be made. this is what we heard from the chairman and ceo of microstrategy when it comes to the exodus we are seeing from the country. >> there is a forced and rushed exodus of capital and mining from china. a bit of a surprise that kicked off in may. that is driving the dynamic of the market right now. shery: how much is already priced into the market? >> it is somewhat priced in. he is probably going to take an optimistic view because he is very bullish. but there is a lot of uncertainty as to how far china will go with the crackdown. some of the mining that has been crackdown on was actually green mining. hydropower. it could make bitcoin a little bit dirtier in the near term but

we will have to see how it ticks up overall in the global markets. haidi: always on the bitcoin beat. but get you to vonnie with the first word headlines. vonnie: president joe biden's infrastructure deal is back on track after he clarified comments that the bipartisan agreements were derail. they were alarmed that he seemed to be making a veto threat. by linking it to a larger tax and spending bill. they said negotiations can move ahead of that he is clarified. >> it was a surprise to say the least that those two things got linked. i'm not -- i'm glad they have been delinked. we can move forward with a bill that is broadly popular, not just among the members of congress but the american people. vonnie: boeing's updated version of their long-haul jetline is

facing new safety of concerns. the faa is demanding boeing address multiple, including flight control software that triggers movements without pilot input during a flight. the faa says it makes next in late 2023. the u.k. prime minister, boris johnson, has moved to reestablish governmental authority after the health secretary resigned for breaking his own pandemic rules. he quit after he was caught embracing a senior aide in his office, breaking the social distancing guidelines to help create. >> i understand the enormous sacrifices everybody in this country has made. those of us who make these rules have got to stick by them. that is why i've got to resign.

i want to think people for their incredible sacrifices and what they have done. vonnie: global news 24 hours a day, on-air and on bloomberg quick take, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, we hear from the ceo of one of singapore's largest privately owned construction companies. but, coming up, analytics say the recovery in china is maturing. this is bloomberg. ♪

haidi: with get back to our top stories, millions of australians

with new restriction spending the country, including a two week lockdown in sydney. in a 48 shut -- 48 hour shut down in darwin. warning the case count could rise in south wales. >> i also do want to shadow that given how contagious the strain of the viruses, we anticipate in the next two days, case numbers will increase beyond what we have seen. haidi: the spring and jason scott who joins us now. there is concern obviously that the outbreak is moving beyond cindy's borders. >> that is right. sydney went into lockdown on friday. and, while the count of new cases there has been comparatively low for the rest of the world, officials have said the highly contagious variant, the delta variant is

spreading amongst the community and warning that it will likely climb. we are expecting an update of the numbers this morning. there are reports of the virus popping up in other parts of the continent. yesterday in darwin, thousands of kilometers away from sydney. they began a two day at lockdown following the detection of two new local cases in the region. that was linked to a gold mine in the desert. in the northern territory. hundreds of employees now in isolation there. elsewhere in the queensland state, two new local cases yesterday. imposing an additional curve. restrictions like mask wearing. introduced in perth.

there is real concern that the delta variant might be spreading too fast to contain. shery: if that is the case, what does that mean for the economic and social impact you are seeing? >> that is to be played out. there is no doubt there will be a strong impact, particularly if these lockdowns are prolonged in the virus spreads. one area of focus will of course be the financial market reaction. australian shares of currency have been resilient this year. about 11% this year. that said, retailers in the tourism industry -- and the tourism industry bracing for aid impact, especially from the sydney lockdown. about $2 billion from that lockdown alone. haidi: quickly, we are getting

updates on the state of operational activities in perth. getting activities from june 27. we know that earlier in the month, they said the perth casino was being breached for money laundering. they are undergoing similar probes in melbourne as well. we are seeing the update now. getting activities from june 27. of course, the federal government is coming under increasing criticism. lots of people saying we are in this predicament because the vaccine rollout has been so slow. what are we seeing in terms of numbers? >> the prime minister and the federal government have been under a lot of criticism in the last few months. basically saying the vaccine rollout has been too slow.

also, the policy of quarantining returning australians in the hotels has been a flawed. particularly as the delta variant answers country and is spreading quickly. when the pandemic started in march last year, australia's shut its borders. the health impacts have been relatively low. one us trillion stop that's great. but now, the slow vaccine rollout, it's going to go into next year. it has left australia vulnerable to the ongoing risk. and stop plans to reopen the economy. it could be well into next year before that actually happens. could be a problem with securing

and rolling out the vaccine. the government has been way too slow to get enough vaccine into the population. the lack of infections themselves, ironically, have made australian hesitant about receiving jabs. particularly with the concerns of blood clots from the astrazeneca vaccine. particularly since the vaccine rollout has lagged behind other developed nations. singapore, hong kong, china facing similar problems. haidi: jason scott coming to us. let's take another look at how the us trillion i'll see may be affecting the economic recovery.

katrina, it has proven to be a terrible combination, their limitations strategy on top of the slowness and rolling out the vaccines, right? how much downside is there for economies like australia and new zealand going down this path? >> we are seeing in australia, prior to this kind of two week lockdown and what was happening in melbourne, the earlier lockdown had just path. the economy was doing quite well. we were expecting earnings to come in at around 4.4 percent. incredibly strong, a good turnaround for leaking action -- from the contraction we were seeing last year. this latest lockdown in sydney, the threat that the delta strain could spread to other states as well, maybe there is a significant downside risk for

the australian economy performing strongly this year. one of the key risks that we foreshadow going into this lockdown was the fact that the vaccine rollout has been incredibly slow. less than 5% of the australian population is fully vaccinated. that compares with the u.k. and u.s., which is sitting at almost 50% of their populations fully vaccinated. it just means that until the vaccine speeds up, the australian economy will be in that recovery mode. haidi: is that a vulnerability that extensive the rest of the world? epidemiologists are saying this is looking more like a seasonal issue, that economies and governments will have to contend with. >> definitely. not just australia has been slow with the vaccine rollout.

we know throughout southeast asia, and places like japan, taiwan, vietnam, they have been quite sluggish with the vaccine rollout. there are countries that initially were able to contain factions right now. they did not have the impetus to be aggressive with vaccine rollout. now they are seeing flareups in cases, that is putting a rocket up the health authorities, saying we really do need to improve the vaccine rollout to really get our economies back on track in a meaningful way. shery: yet, we continue to see more signs from emerging markets and developing nation that perhaps it will happen after how concerned are you that this is a bit premature since we don't know the course of vaccination for these countries? >> this is a concern because

many economies and the emerging markets in asia, particularly in the region, seen as a key risk. so far, just looking at the economies from being in a position where it makes sense in asia, for example, to start tightening. but, if we do the federal reserve, starting to raise the federal funds next year, early in 2023, that means banking could be put under pressure to tighten rates more quickly. that would be fitting for the economy. economical coverage -- the economic recovery is lacking. so, they do need to maintain stimulus for some time. shery: it has been measured in the stimulus measures, right? is that why we a mixed measure? >> in china, it will remain upbeat.

the other results are based effects. because of what happened last year, but also we are seeing elevated commodity prices and also the industrial profits. shery: katrina, always great having you with us. thank you. those elevated commodity prices filtering into inflation concerns. when they should start raising interest rates, the u.s. jobs report will also be a key event for blasters -- for investors. kathleen hays is here with the outlook. kathleen, but start with the latest. >> the president of the federal reserve bank of boston has definitely set he could see the first rate hike coming up at the end of next year. 2022. here is what he said in an interview with yahoo! finance, if we can call it up.

this is the fed's goal. stable in faith and rates at -- stable inflation rates, full employment, in things impossible that will come at the end of next year. it depends on whether the economy progresses as strongly as i and expect another thing he was asked about in this interview was about inflation. there is continuing hype around inflation. he does think it is going to ease. he has talked for years about financial stability, and relation to banks. calling out in terms of the housing market. we have heard other beneficial's mention this as well. the housing boom to get out of control. other thing the fed should be watching. he is mixing this and is one more reason for the fed to start pulling stimulus sooner. he said this is the wrong time cycle to have housing could go path. eric rosenberg waiting to make

sure the economy is strong. one thing very important now is seeing the labor market, the jobs, the table continuing to grow. haidi: kathleen hays there. in the u.s., republicans to negotiations with joe biden partisan infrastructure plan are back on track after president biden insisted the $579 billion package was not linked to a larger tax and spending bill, which the gop opposes. we spoke with the white house economic advisor about what comes now. >> we remain very optimistic, very excited yesterday to see republicans and democrats come together on infrastructure plan. it could be a game changer for american industry and the american economy. we desperately need these investments all across the country, and basic infrastructure, roads, bridges. and the plan included making sure we replace lead pipes so people can get cleaned drinking

water, as well as investments and electric vehicle charging stations across the country. >> there is with the president because the human infrastructure part of it. talk about that at the white house yesterday, that somehow this was contingent upon that. >> the american jobs plan and the american family plan concludes investment -- includes investment in things like health care, child care, establishing a nationwide paid medical program. investments moving towards universal prekindergarten as well as expansion, extending expansion to the child tax credit. it is important that those pieces remain a part of the plan. they are so important to american families. also important to american business. the president made clear yesterday that there is a two-pronged strategy. bipartisan bill that has core pieces, republicans and democrats are important on. that has passed.

but, other pieces around the country, republicans and democrats agree are important for is not a part of the package. the president is committed to making sure those go to another congressional vehicle. shery: that was the white house economic advisor from the u.s. council of economic advisers sticking to bloomberg's david westin. plenty more to come on daybreak asia. this is bloomberg. ♪ . ♪

haidi: a quick check of the latest business flash headlines. ups will permanently allow and many as two thirds of its employees to adopt the hybrid model of working from home and the office. the ceo is said to be leading the charge, to be competitive and recruitment.

cvs will also consider roles based on locations. -- ubs will also consider roles based on locations. there are $5 billion in lending for the united bank of air bits to expand globally. the loans would be allocated over the next two years and will include lending. in the videogame streaming platform -- indian videogame streaming platform looker has in -- has received investments. it was backed by indian meno -- indian media firms and the london-based euro capital. it will use the funds to upgrade technology and context. of next, oil writing hi, on its longest winning streak since december. but i meeting this week may spur risk. plus, u.s. energy secretary tells us president biden will fulfill his promise to d

carbonized u.s. shale. that conversation just ahead. this is bloomberg. ♪ 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 to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

>> this is daybreak: asia. websites will not see a direct impact. british regulators have issued a warning against the finance market saying firms could not meet anti-money laundering standards. the exchange said they had not yet launched their business and does not offer services on their main website.

covid in china slowed in may. industrial firms rose nearly 37% from a year earlier. china says they see continuous improvement in data but small companies are recovering at a smaller rate. india has redirected at least 15,000 extra troops to the border with china in a shift toward an offensive posture against neighbors. tensions escalated last year with several border skirmishes. india has roughly 200,000 troops focused, an increase of more than 40% from last year. australia has extended virus restrictions as it fights the latest wave of infections. 5 million people were put into lockdown yesterday. western australia has also

imposed new curfews. lump -- numbers are low but there is more pressure on the government to step up their vaccination program. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> oil futures in newark are traded at the highest level in three years. this is the focus for the last meeting of opec. crude posted the longest winning streak since december. is it expected to go higher? >> there is expectation that a lot of good things are giving a run. oil continues to trade above 74 in major trading, the highest since october 2018. it reos 3 -- it rose 3.4% in the last week. serious momentum.

opec-plus producers meet on july 1 and that meeting would pave the way for increased supply. a modest output is expected. the big picture is they are well above pre-pandemic levels and at multiyear highs. oil is up more than 50% year to date because of a robust rebound in key regions such as the u.s. and china. jp morgan increased their projections of oil production. brent crude also at multiyear highs. it has strange the stockpile buildup we saw during covid. so traders are turning their attention to opec-plus producers. one had a commodity strategy that says it is unlikely the alliance will flood the market

with crude and collapse the price. we know in the past when prices has -- have risen, oil dropped below zero briefly during the pandemic and there is a lot of optimism that they will be judicious in the way they start increasing supply. >> there was a supreme court ruling last week that could affect the oil industry. >> yes we saw a gap futures fall friday on the 6-3 decision. some found the epa a key regulator in the u.s. has wide latitude to exempt refineries from these federal rules and mandate that require them to mix renewable fuel and gas and diesel. that means a big victory for oil companies that have sought to get a break from the rules. they have audited the cost has

skyrocketed. there is a view the new biden white house will put pressure on the epa to force more refineries to comply. that will be a battle down the road. shery: staying on oil, sale from strategic petroleum reserves is a funding source for bidens infrastructure will but energy secretary says any potential sale would be limited. we are told the move would help limit tax increase. >> were not selling off all of the reserves. it will be a limited sale to meet the goal, the president's goal, which he did not want any of these paid for is to raise taxes under $400,000. he did not want to see a tax on allete trick vehicle or a -- on

electric vehicles or gas tax. so this is a limited sale. >> the republicans put out a document that had the number $6 billion, the amount of money they would raise from the sale of emergency oil reserves. not the entirety. is that number wrong? >> i'm not saying it's wrong. i'm just saying this is a framework that was announced. not everything is set in stone. it may move a bit. but the bottom line is it is a limited sale. >> how far does this deal get toward moving to an electric future? vehicles in particular. given the fact there are not necessarily provisions for higher taxes on gas and the provision for electric vehicle charging stations is $7.5

billion. >> part of the 174 billion dollars, a big part was the point of sale tax incentives, sale intent -- sale incentives for the purchase of electric vehicles so they are at the same level. that is something the president will still fight for and the second part of the two-step dance being done. the first part is the bipartisan part. the second part being the reconciliation, the budget reconciliation process. in that part he will fight for a lot of the climate related measures he put forth in the american jobs plan, as well as measures in the american families plan that involves pre--- preschool, two years of free community college, a care economy. so this first step important in

terms of electrifying the futures that we have a strong transmission grid. you saw there was $74 billion in the power sector, a good chunk of that for expanding the resiliency of the transmission grid. hugely important. >> there is a question about shale producers. they have been behind a huge surge in economic activity for the u.s. and a concept of huge -- of u.s. oil independence. it has fallen off substantially during the pandemic and not come back much. how important is it in your view to get that production back up and running in the capacity it had versus the discipline we are hearing out of the ceos of one of these companies? >> that's an important question. because the world as you know is moving to clean power.

natural gas, an important baseload fuel has problems with clean. it is cleaner than coal but it has methane emissions and co2 emissions. what is interesting is in the framework announced yesterday, there are demonstrations, a significant amount of money for demonstration projects known as carbon capture and sequestration that could be used to d carbonized the fossil fuel sector. that to me is an important step that helps our climate goals and technology that can be used and also helps around the world to decarbonized. something we all signed on tour with the paris agreement. i think -- something we all

signed onto with the paris agreement. i think this will help to help wrap up production in a clean way. haidi: let's take a look at markets setting up for the trading week. >> we are drifting early in the session. dk consolidating -- nikkei 225 consolidating around lows. aussie dollars and kiwi are under pressure with buyers could be -- with lockdowns could be imposed. let's look at the chart. the kospi hit a fresh record high friday. bullish korean stocks. prices in -- increasing for the next three months. utilities are the only one seeing declines expected by

analysts. you can get deeper analysis on this from the terminal. you can check on forecast returns for asian effects. the korean won is standing out into the year end. inflation data is due this friday could offer more clarity. shery: not surprising given the timing we have seen last week. up next, our interview with michelle young about the impact of the pandemic on her property and fitness businesses and diversifying her in -- her empire. this is bloomberg. ♪

shery: michelle young is part of a family behind the sum of singapore's most iconic landmarks -- behind some of the singapore's most iconic landmarks. michelle's path to joining the family company was not easy because of tradition and also

fears of the so-called third-generation curse. she currently owns a submit -- a subsidiary and runs a series of businesses focusing on collaboration from co-working to co-fitness. she spoke to julia about her path and the challenges in the pandemic. >> we took a big hit and had to restart the business. and the most heartbreaking thing for me during covid was restructuring and having to let go of a lot of team members. i am glad to say it rebounded strongly once the government eased. we have not yet seen a big falloff but if this continues, we expect we will again. >> are you worried the pandemic has changed people's minds about co-working and co-fitness? we are edging toward social

distancing. how does that affect your business model? >> there are actually opportunities and upsides. a lot of larger businesses that normally would not consider co-working are now interested in it because of the flexibility for them. he gives them opportunity to split steam arrangements to continue -- split team arrangements to continue social distancing practices. fitness rebounded quickly after the pandemic. but because people cannot travel , they are putting more emphasis on self-care so we have seen a strong increase in demand for fitness and wellness, in particularly -- in particular the suburbs. we have moderated expectations. when we merge, we had huge plans

to roll across the region. we anchored an innovation ecosystem but we do not have physical presence and a lot of other regional markets. one ambition was to have presence in five other markets but covid halted those plans so now the focus is on creating the best value and growth opportunities and collaborative opportunities for the members in our existing basis. in terms of regional growth, core collectors is what we are most focused on because co-working for fitness and wellness professionals is a concept we have had interest from all around the world. australia, new zealand, the u.s. the next step is to go into the

medical space and lifestyle and beauty aesthetics. we are speaking with a landlord who wants to bring co-fitness in in a way a lot of office landlords have brought in co-working operators. i have also been approached by a hotel owner to generate some mixed services that amplify -- those are the angles we are exploring. >> we are see -- we are seeing thinner profit margins. how worrying is that? >> i worry. it is something we have talked about at length. not last year but more this year. we know we will never be able to compete against large developments, nor do we want to. so therefore, our advantage

might be in innovating, which is where the idea comes to play. so it is not just residential development in the traditional sense. there are other offerings. a short targeted segment of the market i believe is underserved. we believe we could lend richness to the retirement concept. so we are looking to move away from the bread and butter boutique residential developments. >> when you finished university you and your brother received letters from your father. the messages were different. >> in the letter to me he said i should spread the risk and find my own vocation and profession because less than 5% of family

firms last past the third generation. my brothers letter said he was earmarked to join the family business and take the helm one day. so yes they were very different messages. but it was not altogether a surprise. >> perhaps not a surprise in the way traditional families work. but did you feel like you had to prove yourself to get your path within the business? >> yes. there was definitely a little bit of disappointment. because i was ahead in terms of academia and the times i graduated. i wondered if because i was a girl and he was a boy. but actually i feel very fortunate to have been given the opportunity to explore other careers and been given the choice to join the family business, rather than be expected to. also because i am not running the core business, i feel like i

have more flexibility in what direction i would like to take. >> how important was it to be able to prove to the elders that you could diversify? >> we were quite aligned already in terms of trying to diversify the entire group and not be so reliant on the construction part of the business. so there was ambition from the board and myself to try to grow on lance but i do not think they foresaw that i would take it outside of property development into co-working and fitness and wellness and hopefully into the co-retirement space, which is retirement resorts meeting co-living and then co-living combined with co-childcare. this vision was not there from the outset but they are still

very supportive because it does work in line with the overall direction to diversify. and also building on our more mature businesses being knowledge, infrastructure, knowing how to move into adjacent areas and models in markets, everyone has good merit. >> your oldest son is eight years old and your youngest is one. is there hope they will follow your path? >> when my father offered me the opportunity to join the family business, i was not sure what to expect. i said i would give it two years . at the time i had no deep passion for real estate. i felt i just wanted a change. i wanted to give back to the family who has given me so much.

i wanted to create more tangible value than strategy consulting and i feel very fortunate that the role in the business suited me. i am not sure now what role or business might suit my children. if there is a match, i would love to see them take over one of the businesses i have started and really grow it and make it their own. haidi: you can watch the rest of generation next every monday on daybreak asia. we are getting the bank of japan summary of opinions from their june policy meeting. one member says climate change is related to the banks mandate and we know the boj governor has held discussions on the state of the economy as well as measures

with the prime minister in recent days. they have talked about the extension of the central bank and covid measures extended and a new leg being measure -- new lending measure. the japanese currency is in a state of flux as we head into the olympics. pandemic related pressures continue. there is more to come on daybreak asia. this is bloomberg. ♪

shery: we are counting down to the start of trading. tokyo and seoul are two of the places we are watching today. -- as part of the 21 billion dollar purchase of marathon per trillion speedway business. to she must focused after shareholders asked the chairman, posting smaller than expected first quarter. in south korea, there is a bidding notice forcing young motor. -- for send young motor.

korean exchange saying they submitted an ex -- an application for permit larry review of an ipo -- preliminary review of ipo. lots of things to watch. what are you watching the market? >> japan mow next group and subaru as it invested ¥35 billion. we are seeing new zealand falling after quarantine free travel to australia was suspended. coproducers and australia after chinese officials said coal prices are expected to see a

significant drop. haidi: this is bloomberg. ♪ wanna help kids get their homework done?

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>> hello and welcome to daybreak asia. haidi: we are taking a look at the major markets opening in asia. they are cautious about the wake -- the week. australian shares are in focus with sidney in a two-week lockdown. cryptocurrencies are gaining.

china's industrial profits slowed with early indicators showing the economy is rebalancing. let's get you to the market open in japan and korea. >> japanese stocks gaining ground. nikkei 225 with additional gains. the yen is trading around a 15 month low. divergence is in focus. we have the boj meeting minutes. one member said inflation pressure is likely temporary. boj bond buying on monday. south korea, bonds are up for sale. the kospi falling after reaching a record high friday.

because stack gaining some ground. korean won a little change against the greenback. watching ipo seen in south korea. keeping an eye on crypto exchange stocks in japan. group shares are fluctuating. in australia, the start of a staggered open. watching travel and tourism as sydney enters a lockdown. the key we be closely watched. -- kiwi will be closely watched. those stocks have little change.

shery: the next guest is saying the best opportunities are shifting to asia after nations positively impacted global markets. joining us is hartman, great to have you. are you firmly on board with the reopening? >> when we look at asia, japan is one of the overweight. -- overweight's. we are seeing slowly and shery the authorities are becoming better in their population vaccination. china is only partially reopening. half of that indexes internet platforms so they do not have many friends left right now.

you will see in the second half i think the deck is reshuffled. this is an area where there is so much growth that the tables might turn. haidi: what happens once we see policy tightening around the world? we have seen signals coming from mexico and the czech republic. global financial conditions are loose but easing off extreme levels we have seen in the past? >> it's interesting you raise this because i agree many regions do not become looser or tighten, especially the u.s.. china's different. they have already tightened and that is arguably part of the reason why they have left other markets. we have seen in the second half

they are at least neutralizing or at least injecting liquidity moderately. that is what i mean about the tables turning. u.s. tightening and china stop tightening. haidi: you talk about the theme being the future of earth. where are the opportunities? >> we have a couple, especially when you mention green. i think it is important, everyone looks at the electric vehicle space and battery space and that is an interesting area, but we would like to take it broader. there is a lot of competition in these areas and other areas not looked at like storage and distribution of power, it's different now than what used to be the utilities model is turned

on its head. some companies are more profitable so it's good to put these in this green basket. shery: what do you like in terms of alternative yield strategies? >> right now certainly the private equity side with it usually offers the premium so the liquidity premium remains. opportune a lipstick way we see good opportunities coming up -- opportunisticly we see other good opportunities coming up. the summer months might give some volatility that when you let hedge fund managers help in these next volatile months it

might also be suitable again. shery: japan open, we are seeing a little upside. when it comes to that stock market and green technologies present in the market, what are you seeing as opportunities there? >> japan is very heavy on the easy side not just with large companies that have option on hydrogen and fuel cells that other global operators have abandoned. so they are cooperating with local operators and perhaps it is a story that is a couple of years out but japan also has a lot of interesting companies in the food chain. so the components you need, they have both.

that is a fairly big chunk of the market so beyond the reopening, that is an interesting angle. haidi: great to have you with us. let's look at how some of the travel mobility related stocks are trading in australia given the lockdown. >> a downside. some buyers are opposed in some places that are not entering a full lockdown. falling more than 3%. haidi: bitcoin in focus again after the latest regulatory hit. banning banner from operator -- from operating. let's bring in jeff's. -- jeff.

is this latest we have seen? >> bitcoin is reacting well. of trading up at almost 85,000 this morning so clearly someone is happy with the look at regulatory stuff and there is also the chance that the bank will accept bitcoin at some point. so some things are going on that seem like they might be somewhat bullish. the start of the week can also bring in some of the institutions that were off for the weekend. shery: what does the push toward regulation mean for the operation of the crypto industry? >> short-term it creates uncertainty because you do not know exactly what will be allowed or not. long term, it could help institutions and individual investors feel better about the crypto space if they feel they

feel there is protection for them. so what could be good overall long-term. haidi: in the meantime we see the crackdown in china. this is what the ceo had to say. >> we think of the primary dynamic is the china exodus of capital and mining from china that was a bit of a surprise that kicked off in may. it is driving the dynamic in the market now. shery: how much of bitcoin pricing is in the price? >> there is some in the price. michael who was saying it it is bullish on bitcoin but there is good and bad about getting out of china. there might be other places that have greener energy where the mining rate will go to but at the same time there was a lot of hydropower use in some regions where the miners are shutting down. so in terms of the environmental

aspect of bitcoin, it looks like he does a bit uncertain as to whether it will be good or bad. haidi: a wild wide for those crypto assets. now we go to the infrastructure deal in the u.s. >> derailing the bipartisan agreement. republican senators signed off and were alarmed that biden was supposedly linking the plan to a larger tax spending bill but they say negotiations can move ahead. >> it was a surprise to see them get linked and i am glad that they are unlinked and it is clear we can move forward with a bipartisan bill that is broadly popular, not just among congress but among american people. >> boeings jetline is taking new

concerns with more testing before certification. the faa is demanding they address multiple issues including getting the plane to move without a pilot during the flight. the investigation will be in 2023. india has redirected trips to the border with china in a shift toward the military postures against neighbors. tensions escalated last year with several skirmishes leading to deaths in both sides. india has 200,000 troops focused on the border, an increase of more than 40% from last year. boris johnson looks to reestablish the government authority after the health secretary resigns after breaking his own pandemic rules.

he was in creation of the social distancing guidelines -- he was in breach of the social distancing guidelines he helped create. >> i understand the sacrifices everyone has made. that you have made. and those of us who make these roles have to stick by them and that is why i have to resign. i want to thank people for their incredible sacrifices and what they have done. >> global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: tesla's operations in china are dealt a blue after -- dealt a blow. details later. just ahead, a former employer at

the wuhan laboratory is speaking out about her former employer. this is bloomberg. ♪

haidi: millions of australians are under a new lockdown. each -- sydney has a two week lockdown and darwin has an eight hour lockdown. >> i want to foreshadow given how contagious this strand is we anticipate in the next few days case numbers are likely to increase beyond what we have seen. shery: let's bring in james bond -- james bonn but we understand

it is a two-week shutdown. >> good morning. we are facing the first working day of lockdown and it is sad to say it is the biggest crisis in the pandemic since the melvin lockdown last year. as the premier mentioned we expect an increase in numbers today and probably the next few days. new south wales likes to boast they have the best practices and they have been doing a good job so far. but it has become increasingly difficult as the caseload mounts so the next few days will be crucial to see if they can keep a lid on this. shery: any idea on social and

economic impact? >> estimates of 2 billion economic impact for the two-week lockdown in sydney but it is now broader than sydney. melvin territory is lockdown for the next 48 hours given the severity of the outbreak. restrictions to a less extent in queensland and western australia . so the economic impact will be significant. it is probably too early to put a number on it but -- number on it. haidi: you tends to link the performance for the handling of the virus situation to the political ruling. despite controversy over the g7 attendance and activities in the u.k. that did not play out well

when it comes to the borders still being closed but him going on trips, despite that we are seeing the latest opinion poll seeing the primary vote is unchanged but the prime minister's increased by three percentage points approval rating. so he is for now managing to maintain support. shery: it is interesting. we have seen a lot of criticism in japan about the slow vaccination rollout but now that they are having faster vaccinations a nikkei poll shows approval for the government has increased. still, many are not happy with

hosting the olympics and 37% of the population says they should postpone or cancel. so more japanese are willing to get vaccinated if vaccines become available. so interesting to see this dynamic between vaccinations and the handling and what it does for the governments. we have the bloomberg scoop. virologist daniel henderson was the last one at the wu hand institute of -- wu hand institute of pathology -- w uhan institute of pathology. she says there is no question that they are responsible. >> there was no chatter whatsoever. nothing strange from my point of view going on at that point that

would make you think something is going on here. shery: let's get more from michelle cortez who wrote that scoop story. give us the highlights. >> daniel anderson is saying what she saw on the grounds does not reflect some of the things she has been reading about in the media in terms of research allegedly being done and people in the lab falling sick with respiratory illnesses and inappropriate unsafe use of technology. she says that is not what her experience has been. she had to go through 45 hours worth of training in terms of working for viruses. she works with ebola and did not know anyone who fell sick when she was there. so what she is saying is it is theoretically possible because we do know that viruses have

escaped from these high containment labs in the past but the idea that it was man-made in that lab is something she discounts entirely and she says the chances of it actually having come out accidentally from the lab is very unlikely and it was something that came from natural origin but she says she thinks we need to have a full investigation so we can get to the bottom of it. haidi: it feels like 18 months into the pandemic we are none the wiser about the origin. there is the wet market theory, the lab theory, something else. where does the bulk of academia sit on this? >> i think most academics are saying it most likely came from natural origin. we see it all the time. dozens of viruses jump from

animals into humans over the years. that is a process that occurs. obviously they do not normally cause huge pandemics like we have not seen in almost 100 years but the fact is this does happen when we are going from an animal to human. the problem is the chinese government has not been open in terms of allowing people to come in to get to the bottom of it and the concern is we really need to know what caused it so we can make sure we get it under control and that this virus does not continue circulating and so we can take actions so the next one doesn't come. that is the concern with scientists and researchers. they want to know what the answer is. and it took over a decade for us to identify that it was responsible for the original sars virus. so it could take a while.

but we do not know if we are on the right path for getting the answers that we need. shery: michelle cortez. tune into bloomberg radio for more analysis. we are broadcasting live from our studio in hong kong. you can also listen on bloombergradio.com. we have a lot more ahead. this is bloomberg. ♪

shery: it's it is a rainy and stormy day in hong kong and they are now issuing a warning and hong kong exchange will be canceling the preopening if the black rainstorm signal is not lifted by 9:00 a.m. we are watching this closely as we continue to see that warning signal over in hong kong.

let's take a check at the headlines. the u.s. will permanently -- to adopt a hybrid model of working from home and the office. the ceo is said to be leading a charge in a bid to be more competitive in recruitment for u.s. banks. they will consider reopening space. no date for a return to the office has been set. the bank says funds might help shakeup the supply chain. loans will be allocated over the next two years. capital land will divest with other travel city developments in china. they expect $1.5 billion of deals should be completed in the

third quarter. still ahead, more chinese investors being lured in the hunt for big returns. we will discuss. this is bloomberg. ♪

haidi: we are seeing, australian tourism related stocks tumbling as we get the market reaction of sydney in the too weak lockdown, bundling an outbreak of a highly contagious as big of covid-19. other lockdowns being seen around other states, into borders lockdown, and the travel bubble being hunted. we are seeing that reaction,

down the most in the year. 50 trading volumes, qantas, five times what would normally be seen at this time of the session. this travel company down by two point 8%. new zealand stocks also falling after a halt of the trouble bubble with australia. -- a of the travel bubble with australia. we will be expecting to get more details on the case numbers in half an hour shery. shery: a little more of a mixed picture when it comes to asian markets. here is sophie with the latest on the markets. what are you seeing? sophie: i want to focus on currencies. we have the offshore yuan

holding onto a three-day again. we are seeing the quantitative easing dollar outweighing the losses on the the -- the kiwi dollar. in the rbnz may end its quantitative easing buying. check out the korean won, holding at 1128 handle. as the bank of korea considers a timetable for normalization. malaysia extending its lockdown ahead of the trading debut in the country. let's look at what is going on in north asia. ishares of the most in 10 weeks. the 711 operator has been ordered by the u.s. to self-290 stores as part of its merger -- to sell 290 stores as part of its merger deal.

the asx 200 is under pressure, but the kospi is extending gains at a fresh record high, 3300 level. analysts very bullish on korean stocks. haidi: all right, sophie kamaruddin in hong kong. police have made another arrest under the national security lockdown. this is the chief editorial writer of a pro-democracy newspaper. with the latest, we have our teeth a correspondent, stephen engle in hong kong. what do we know about the latest arrest? stephen: this will be the latest arrest of the daily newspaper's either writer or editor. a few weeks ago we had five key arrest, including the chief of the apple daily. those two under the national security laws. late thursday we got an opinion writer who had penned about 800

different columns for the apple daily, he was arrested. police have confirmed they arrested a 57-year-old man for, quote, "conspiracy to collude to endanger national security." local media, including the national television station, have identified the individual. we have not been able to independently verify that, but various media are reporting it as mr. fung, who was the chief opinion writer for the apple daily. he was arrested reportedly at the airport, heading to the united kingdom according to these various media reports. police said the arrest was linked to the operations on the 17th when those five executives were arrested, as well as the 23rd of june when the opinion columnist was arrested. seven apple daily executives and editorial staff have been arrested in the past month.

police say the operation is still ongoing, and further arrest will not be ruled out. shery: this is also a week of anniversaries in hong kong. what is in store? stephen: it probably will not be like 2019 when many people showed up and it got violent in the evening, and it will not likely be like last year, when within hours of the imposition of the national security lockdown late in the evening of june 30 -- of course, july 3 was the first full day of the lock down. people turned out to protest and to test the national security law. what we have seen over the past year is a complete crackdown as well as electoral reform changes and a number of arrests, more than 100 under the national security law. last week we got the beginning of the first trial under the new national security law. hkfp, which is hong kong free

press, has come out and said that various groups have applied for protest on july 1. however, it is unlikely to improve since last year. the tiananmen square celebrations in victoria park were not granted approval by police. however, keep in mind, july 1 is not only the handover anniversary, it is also the anniversary of the birthday of the communist party. beijing will be having a celebration. state media saying hong kong will have an open and unprecedented scale of celebrations this thursday i will achieve. shery: north asia correspondent -- our chief north asia correspondent, stephen engle there. thank you. the shift away from blue chips is gaining traction. we now bring in catherine.

china has had a tough time. the gdp chart showing that despite we had chinese stocks seeing their best week, they are still way -- way below. they are still way below this year's highs, especially given liquidity and policy timing. what are we expecting? thanks for having me. it has been such an interesting year for the chinese equity market. we saw the quick sale of. the last couple of months and weeks, it has been pretty flat.

some of the big liquor makers, he had breakout stocks that led the rally. people were thinking, wait a second, given uncertainty about how the economy is going to go, they are to look at the best earnings potential and best upside will be the smaller players. haidi:. haidi: what are they avoiding? catherine we have seen a big clampdown on hong kong tech and internet, that is well documented. a lot of investors are saying, take a look at onshore tech. . it would be semi conductors, e.v.s. semiconductors are clearly hot globally. evs and the move to carbon-neutral in 2050, 2060, that is also kind of a hot area.

granted, a lot of these valuations and the way of the trading is expensive but investors are saying, it is expensive, but maybe not historically so. and given where the market is trending, it is still a good place to be. shery: to put the long-term context in, catherine ngai in hong kong. up next, tesla hitting another speedbump in china as the government orders it to fix thousands of cars. that ahead. this is bloomberg. ♪

>> vonnie: this is "daybreak: asia". binance says services on its website will not be a direct impact from the ban in the united kingdom. it is one of several crypto asset firms which needs anti-money laundering standards. the exchange says it hasn't yet launched it u.k. business, which is a separate u.k. entity, and does not offer services on its main website. the u.s. launched airstrikes against iranian-backed groups in syria and iraq. the department of defense says the strikes were aimed at facilities that were used to launch drone attacks.

president biden ordered the strength to warn against further attacks against the u.s. military. australia has extended virus restrictions. greater sydney's 5 million people were put into lockdown on saturday. the northern territory and western australia have also imposed new curbs. while case numbers are low, the flare-up puts pressure on the government to fix its vaccination program, which has lagged behind other nations. driven by an accelerating global recovery from the pandemic, government forecasts the resource sector earnings raising nearly 8% to 200 54 billion u.s. dollars in 2022. rising sales of lng and coal are expected to drive most growth. 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.

shery: facing a new setback in china, with more than 285,000 cars needing a software fix for potential safety issues. there is almost all the cars tesla has ever sold their. let's get more from bloomberg's transport editor. peter, quite the setback for tesla. a black i, you would say. peter: good morning. it certainly is a blackeye, it affects almost all the tesla cars being sold in china. this continues what has been a bad run for tesla in china that sort of started in mid april, at the shanghai auto show, a disgruntled tesla owner protested's at tesla's's, spurred by a spate of crashes in tesla's cars.

so, as you said, a run of bad publicity for tesla in china, which is a key market for it. haidi: what are the lessons learned in other markets in terms of the e.v. experience in china? peter: sorry, could you repeat that, heidi? you cut out on me then. haidi: what are the lessons learned when it comes to other e.v. markets and other e.v. companies when it comes to the china experience? peter: the china experience seems to be a tough one for tesla. it started out with some honeymoon, got some states support particularly around building it factory. but it does seem that, as we have seen with other multinational companies in china , it is really important to stay on the right side of the government, really important to stay on the right side of consumers.

you need to have a really good public image to keep consumers and the government happy. and what other countries might consider a small or minor issue can really flare up and grab a lot of public attention in china. so they need to be proactive and get on top of these things quickly and sort them out. haidi: bloomberg's asia transport editor, peter vercoe. we will stay with the e.v. market. this is effectively the capital of the biggest e.v. market in the world. let's get to our managing editor in beijing. emma, talk to us about this city. concerns around batteries have traditionally made consumers wary of e.v.'s book. how are they finding answers?

emma: they seem to have cracked the code. you have a situation where almost 70% of the cars sold in that city, which has about 40 million people, were electric. they did it through a number of initiatives aimed at making people feel comfortable with electric cars and addressing the issues you just named, which are pretty much universal around the world in terms of concerns when it comes to e.v.s. shery: so how does the city overcome those concerns? emma: first they worked with a local manufacturer, which coincidentally is the biggest e.v. manufacturer right now in china, it has the highest electric car, the mini in china right now. they worked with them through a really extensive overhaul. they got people on board

experiencing these cars, putting their concerns at ease about charging, you know, where can i go, that sort of thing. making people comfortable with these cars, which are different experiences to a combustion engine car. they doubled down on parking. the cars traditionally used in the city are smaller ones. they were able to use rigorously unused tracts of land to make hundreds of e.v. car parks. and initially, charging was free as well. now it does cost much more to run the car -- much less to run the car than the gasoline one. that is how they got people on board. shery: emma o'brien in beijing, i will asia managing editor there. this group will spend two point

$4 billion on the battery plant in northern france to our ault evs both. the strategy will see them acquire a stake of 20% in a better company. president emmanuel macron is to unveil the agreement on monday. united airlines is a voyage more than 200 airbus and boeing jetliners in mother largest deals in its history. the u.s. carrier is looking to rebound its fleet with more efficient planes. united is expected to buy 150 boeing 737 max jets and over 50 airbus planes. we are told the deal will be announced during an investor event on tuesday. indian videogame streaming platform local has received nine billion dollars from investors in its first fundraising effort. it was also backed by an indian fund and london-based hero capital.

local says it will use the funds to upgrade technology and content. we have an update on that news that hong kong exchange will cancel free opening. this because of the black rainstorm signal. it is the hong kong exchange's protocol that when these are issued, generally a review is done and further advice will be given before the session. at this moment we understand the preopening has been canceled because of that black rainstorm signal. the morning session would get canceled. for those of you planning to go get vaccinations in hong kong, those services have been suspended because of the rainstorm signal. hong kong vaccination centers will be resuming service if that signal is lifted. coming up on "daybreak asia", ubs sets itself apart from its wall street years, allowing most

of its employees to mix working from home and being in the office in a bid for competitive recruitment. we will get details for you next. this is bloomberg. ♪ this is bloomberg. ♪

♪ >> we have more news on the hong kong exchange, now saying that the morning session will be delayed because of that black rainstorm warning. security derivatives markets will delay their open.

let's go to sophie to see the markets as the opening session has been delayed though opening session in hong kong will continue. we are watching tencent with some speed bumps on their ipo. also watching coal producers on the mainland. a chinese official saying that coal prices are set for a substantial drop next month. also watching auto stocks. tesla suppliers as well as rivals which has withdrawn its request to list on the shanghai star board. it had faded out as early as march. nike suppliers, this one was upgraded on earning prospects as well as growing demand for key clients like nike. haidi: sophie kamaruddin there

in hong kong. when it comes to working from home for the office, ubs is taking a different approach to its u.s. rivals sources. say the approach will allow as many as two thirds of its employees to adopt a hybrid model of working from home and from the office. joining us is our finance reporter, nabila ahmed. this is a standout when it comes to giving flexibility, at least among wall street. nebula: exactly, this is a clever move. they are hoping this will set them apart in terms of being a more attractive employer than some of the other u.s. wall street banks who are being quite restrictive when it comes to return to work. ubs is hoping it will give them an edge. right now flexibility is being seen as a major park. we are hearing of -- as a major perk.

we are hearing of executives either switching banks or quitting their jobs because they are not able to get the flexibility they want. if the pandemic has taught us one thing, it is that probably the future of work will go through fundamental changes, and ubs understand that. shery: what does their hybrid model look like? nabila: ubs did an internal analysis of its workforce, which is about 72,000 people globally, and figured out that about two thirds of their staff were in a position which would allow them to be doing hybrid work, some days from home and some days from the office. it is not actually mandating a date for return to the office, it is also not saying that you have to have a certain number of days in the office but it is saying that two thirds of the workforce are allowed to work from home. obviously that excludes traders and bank branch staff, but that

is a departure from the other banks. haidi: in terms of the comparison, i am wondering whither they give them an advantage, because we know that the work-life balance side of things has become more prominent in terms of what employees are looking for post-pandemic exactly, the pandemic made us all rethink some of our priorities. nabila: you have goldman sachs who already asked staff to return to office, jp morgan saying staff should come back in september, morgan stanley the same. some of these banks are considering mandating vaccines. for some workers, that will be a step too far, so ubs stands out from that perspective. you also have other u.k. headquarter banks like hsbc and standard chartered who have announced plans to allow staff to work from home or in near home locations, to reduce office

footprints and avoid city commutes as well. distance from ubs echoed other european peers such as societe generale from france, but, as we say, it is in stark contrast to u.s. banks. only citigroup, it is the only u.s.-backed so far that said it will allow permanent hybrid work. shery: asia finance reporter, nabila ahmed. coming up, we will hear from bank of america securities co-head of asia for the outlook on the second half of 2021. more from the economy virtual event, and an exclusive interview with one of india's biggest commerce players. later. hong kong exchange now saying the morning session will be delayed due to that black rainstorm. hkx saying that security

derivatives market will be delayed. you can see a very rainy and foggy hong kong. the market opens in china with a slightly delayed hong kong. this is bloomberg. ♪ (announcer) back pain hurts,

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>> it is 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open. item tom mackenzie. >> let's look at your top stories today. offering more balance. expansion with solid underlying growth. still on track to be the fastest in a