>> hello and welcome to "daybreak asia." i am haidi stroud-watts in sydney. shery: good evening from bloomberg's will headquarters in new york. i'm shery ahn. top stories this hour. banking shares jump in extended trade as wall street lenders announced a bonanza of buybacks and dividends cap nations also except for a mix to as the reflation trade loses steam amid new travel curbs and we way the

best and worst places -- weigh the best and worst places to be as the world reopens from the pandemic. by the u.s. has vaulted to the top spot. haidi: what a difference a few months makes. sophie kamaruddin is taking a look at how we are setting up. sophie: asian features mixed to mostly lower. nasdaq you minis are faltering after we saw the -- you minis are false -- e-minis are faltering. tourism names sank on concerns over the delta outbreak and pulling up the chart on the terminal, asean stocks were at the back of the pack on monday and your today, the jci and the pse in the red for 2021 here but u.s. expecting aussie on stocks to outperform. if the value rotation can regain traction, that doesn't bode well

for the value heavy on xeon region but fitch does caution that asset quality visibility will be clouded into next year and loans are extended, keeping credit costs high in the near term for these players, shery. shery: we are very much watching those banks. the biggest u.s. ones are boosting payouts and continuing buybacks after clearing the fe'' s stress tests. morgan stanley doubling its quarterly dividend and goldman sachs increasing its payout to two dollars a share. let's bring in shelley last act. -- our correspondent. they did not disappoint. >> -- shery: are you there? right, we are trying to reestablish our connection with her, but this coming at a time when we are seeing after-hours trading really high for those banks in the u.s. after the much

expected buyback announcements and dividends as well. haidi: the question is how much it has already priced in, whether we continue to see upside in the bank financials. the other thing investors have been watching his news we had a few moments ago that the house of representatives is passed -- has passed its bill. this legislation is part of the effort to boost u.s. research and development in response to china's challenge to u.s. economic supremacy. joining us now for the details is an slightly, so what do we know, where are things at, and how does this create another building block in the broader strategic effort that washington is making in this regard? dan: right, yes, so the house right now is voting as we speak on these two bills. and just finished passing one with a vote of 345-67. that is about as wide a range in bipartisan support as you will

get these days in congress so it sort of demonstrates not only the desire to take on china but i think also sort of a desire to boost domestic research and development to kind of boost domestic capability to manufacture chips to sort of come up with the technologies for the next generation and that is -- part of that is coming on the heels of the pandemic. a lot of lawmakers saw how volleyball the u.s. supply chains were to a certain extent -- vulnerable the u.s. supply chains were to a certain extent. they doubled down on the fact that the u.s. needs to boost research and development and bring back some of that capability that it has lost in the last few years. shery: this is the national science foundation bill. there is another one in the house about providing money to the department of energy but there is another bill in the senate as well. tell us how they would all

combine and what the timeline would be until it gets to president biden's desk? dan: you are right. there's a few friends in this effort. the senate about two or three weeks ago passed a $250 billion package of bills that would boost research and development. now, one of the key components to that was a 52 billion dollars emergency appropriations bill that would immediately, if enacted into law, provided incentives, tax incentives, and grant programs for companies like intel or tsmc from taiwan or samsung to build chip manufacturing plants here in the u.s. the house is expected to back that asset although the two bills it's passing are expected to pass tonight and do not include that, but it is expected that at some point, they will add that in as this process moves forward and eventually,

this will get to sit in biden's desk. there is bipartisan support for this effort in both chambers. the timeline is looking something like september or october according to representative frank lucas, the top republican on the science committee. i spoke to him earlier today and he said he was feeling optimistic. he is a republican of course and he said that there's a lot of bipartisan support for this so he said september and october maybe we will see something heading to the president best. -- president's desk. shery: what does this mean in terms of all of the other conversations between china and the u.s., especially when it comes to the trade front, where really, we have not seen much change in terms of lifting those tariffs on china? dan: i think that this is sort of another front in sort of this ongoing strategic competition that the u.s. is now viewing

china through a strategic competition lens so i don't know that there will be any easing on those restrictions on the course, this legislation does not touch on trade per se. it's kind of a domestic spending bill in many respects in that it does not take aim at china directly but rather sort of says , you know, we should develop some of these capabilities ourselves. china is at the top of lawmakers minds as they look at this and you can see where focus is on things like semiconductors, chips, but also space programs and other sorts of research and development efforts that would not only kind of bolster u.s. competitiveness today but you know, i think in the minds of lots of lawmakers, 10 to 15 to 20 years from now so they are

trying to come up with that next space program type idea of what is going -- what it is going to look like, what will make the u.s. competitive in the future. haidi: dan flatley, our congressional reporter. let's get you to vonnie quinn, who is in new york with your first word headlines. vonnie: japan's number two defense official has laid out the increasing threats he sees from a more assertive china. longer-range missiles and more frequent airspace incursions. the statement after of defense -- the state minister of defense told the washington-based think tank that it expects china missiles to target the white house and he said japan is not just a friend to taiwan but a brother. the biden administration defended its decision to launch air on iran backed militias and area and iraq. speaking on a visit to rome, antony blinken says it was necessary to send a deterrent

message and showed the u.s. would not hesitate to protect its interests in the middle east. >> with regard to the strike last night, at the president's direction, u.s. military forces conducted airstrikes against facilities used by iranian backed militia groups in the iraq and syria border region. they targeted facilities used by groups responsible for recent attacks on u.s. interests in iraq. specifically, they targeted operational weapons storage facilities at two locations in syria, one location in iraq. vonnie: can you unveiled more support measures for the pandemic-hit economy including an expansion in its emergency credit program as well as assistance for the health care and tourism sectors, and the measures will help a third-largest economy. the second, much more intense wave earlier in 2021. global news, 24 hours a day, on air and on bloomberg quicktake,

powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery. shery: let's turn to the biggest u.s. banks boosting payouts and continuing buybacks after clearing the fed's stress test. let's go to our wall street correspondent. morgan stanley leading the pack here. sonali: morgan stanley doubled its dividend. that is a lot of money. it is $.70. you definitely see morgan stanley leading the pack here although you see some big increases at other banks as well . a 60% increase at goldman sachs. two dollars a share. that two dollars is the largest announced dividend. jp morgan also rose its dividend to 11% to one dollar a share so you are seeing some big jumps here, very welcome announcement after a pandemic year in which

the banks were constrained at paying these dividends so there will be a political question on how much these banks are lending to the economy versus paying dividends and increasing stock buybacks when it comes to their returns to shareholders. haidi: how much of this is good news baked in? what is the forecast? sonali: some of these higher than expected and some of these are hard to bacon. for wells fargo, their dividend is double from their tencent dividend that was interesting but it is still much smaller than the $.51 that wells fargo is paying before the pandemic and before they had to really bake in the costs of all the scandals they faced. for citigroup, their dividend will stay the same at 51 and's and they also have to increase their stress capital buffer so we have good news and bad news, muted news to bank in.

for a firm like morgan stanley, that james gorman really tried to hand to investors that they would be aggressive with their dividends by saying that they were sitting with an embarrassment of riches after spending money on two of the biggest deals since the financial crisis. and after some record numbers, but remember, you have to wonder how much conservativism is baked in. haidi: our wall street correspondent. outbreaks of the delta covid variant are derailing hawk currency trades. we will get an analysis on them, next. plus, facebook's market cap moving above $1 trillion, the fastest company to reach that milestone. details, ahead. this is bloomberg. ♪

>> australian authorities are racing to contain outbreaks of the highly contagious delta coronavirus strain that forced sydney, darwin, and purrs into lockdowns and put other major cities on high alert. johnson joins us with the latest. how concerned is the governor with the spread of the delta strain? >> there is a high level of concern about the spread of this highly contagious variant. first in greater sydney, brisbane, the sunshine coast, the darwin region, and earth in western australia, and we are seeing a rollout of lockdowns, mandatory mass wearing, and closed state borders. we have not seen that for months. there are two junta 70 active cases around this country now

which obviously, by international standards, is still very low, but for australia, which has been pursuing a covid zero strategy to eliminate immunity transmission, it really is bad news. shery: what do we know in terms of the government's response to the pandemic and also the vaccine rollout and how they are coordinating with these different cities under lockdown? edward: one thing that the government is coming under pressure on is relatively slow vaccine rollout and it made some late-night announcements on that front. only 14% of the population here is covid vaccinated compared with more than 50% of economies like the u.s. and the u.k.\ the main labor operation says the government did not act quickly enough in ordering vaccine stockpiles and did not widen the net enough to bring in enough drugmakers. the picture is a bit more

nuanced than that. vaccine nationalism in the european union nose-down deliveries of astrazeneca and health concerns around blood clots have complicated matters and the government has been recommending that people aged under 60 get pfizer shots. there's been a level of complacency amongst the public because infection rates have been so low but this latest bout will probably remove any vaccine hesitancy. the government said last night that younger people can get the shot from doctors as long as they talk to gps about the potential risk. >> edward johnson in sydney with the latest. the u.s. house of representatives has the vote to pass that research and development bill. this is a set of votes on two bills taking place at the moment that could form the basis of legislation in the chamber, designed to boost u.s. research and development in response to

china's challenge to the u.s. on that front. the other bill of course also provides funding for the national science foundation, this month providing additional funds for the department of energy. let's take a look at the fx now and the risk sensitive aussie dollar is the worst performing major currency this quarter. let's get insight from lower for men's, the executive director of macro sales at j.p. morgan australia. great to have you with us. we are looking at currencies like the rand as well. a lot of these popular pairings are falling apart as a result of the spread of the delta variant. is this something we expect will just continue at least until we see an adequate level of vaccination globally? >> that's right. i think we have witnessed massive levels of under vaccination and we saw it first in asia but now clearly closer to home here in australia as well and as mentioned just before, the rates are far too

low and the rollout has been far too slow. we are seeing emergency measures. it will take some time. i think we are encouraged by the recent melbourne lockdown. it was ended quite quickly. sydney is hoping for the same thing. it will keep risk a little bit on the back foot in relation to the currency and as we head into the rba next week as well. haidi: this will be really good news for the rba. they have been quite concerned about the strength in the currency. given the levels of uncertainty, not just in australia, but regionally, are we expecting even more reason for central banks to just sit back and see how this inflation story really plays out? >> yes, i think inflation is an interesting one. locally, but tone around the rba heading into next week is one where they will be a bit more cautious given what is happening around them right now but at the same time, they have wanted to move towards the path of moving away from targeting the next

yield curve controlled bond even though we do expect them to announce more on the qe front so buying more bonds in the five-year to ten-year part of the curve so the market is a little bit excited here in australia, particularly around earlier rate hikes and expected. we think they will push back in the short-term given what is going on, but certainly, inflation pressures are building. we know about staff shortages. even though we are in a lockdown period, it is an issue facing a lot of companies around australia at the moment given the limited migration for that reason, the rba will be watching that very carefully and we will be paying particularly close attention to the july cpi print. shery: we are seeing a bit of a range when it comes to domino trading. this gtv turn on the bloomberg showing that we are really stuck in that range although the rsi has been coming down from those overbought levels. what is your prediction for the u.s. dollar, especially against low yields out there?

>> after the watershed fomc, it was clearly an important time for dollar positioning. it did shake out a lot of the shorts we have seen on the broader u.s. dollar. we think that going forward against the low yields, you will get the better performance of the rest, so the euro and the yen and we did the that overnight in particular. particularly on the yen front. overall, the high data fx for the currencies, it is not so clear-cut. there are different dynamics at play here but one thing that is important is the oil price, which i is a little bit off was radar at the moment even though we have the opec-plus meeting this july. it feels like these underpinned oil prices have not been getting as much attention as they should have done over the last few weeks. the u.s. dollar going forward, july is a mixed month in terms of seasonality but we would probably expect i think in the short-term, the dollar will continue to find at least some support and we will watch on

that front. >> quickly to your point on the oil, where would you see the biggest impact if we really do have those higher prices? laura: yes, so clearly, the petro currencies will be the main beneficiaries of that, but we do think that overall, it is really something that is important for inflation expectations. oil does feed into the psyche of consumers and as we head into the u.s. and driving season, this year with a reopened economy, i think the demand is going to be pretty substantial. travel begins to open up as well. and i inc. what we are witnessing now is the supply demand dynamics within oil really quite supportive in the near term and we are already up in the mid 70's so this is the issue. $100 oil is certainly a tail risk as we head into opec this week. we are watching to see what they do on that front because they have -- there has been micromanaging of late. shery: laura fitzsimmons, great

to have you, executive director of macro sales at j.p. morgan australia. coming up next, facebook goes past the $1 trillion mark. details of its been in two monopoly losses, next. -- win in two monopoly losses, next. this is bloomberg. ♪ s bloomberg. ♪

shery: breaking news. the u.s. past the second bill to help the u.s. compete with china. we are talking about providing additional money for the department of energy and the first bill was a national science foundation bill authorizing more funding for the organization. this of course coming at a time when you are trying to form the core of legislation in the u.s. house of representatives, designed to boost response to china's challenge to u.s. economic supremacy. we already have the senate bill, the $250 billion measure.

in the u.s. innovation and competition act that includes more than $52 billion in incentives and grant for manufacturing. some lawmakers you want the house to include the incentives for chipmakers. conversations are ongoing. in the meantime, they have this to bills passed by the u.s. house. the difference is, between the two chambers of course, we will still need to be negotiated and you are still watching when that timeline will continue as you have the house negotiating with the senate and then you have to send it to president biden's desk and then he has to sign them. haidi: it is a procedural ways to go. you cannot imagine that this would be particularly controversial, this kind of, i guess to borrow from his predecessor, to try to make american innovation great again, to counter that rising confidence and supremacy and wealth we see from china and continuing to monitor that. in the meantime, we have quick since flash headlines.

south korea's bank is planning to raise up to $2.3 billion in an ipo. the internet only lender is telling within 65 million shares, up to 30 day -- 39,000 won a piece. making it south korea's third most valuable lender. it has also banking given preliminary -- been given pulmonary approval. singapore's company is considering a u.s. listing via a spac merger. it is said to be working on a potential deal that would value the company at as much as $1.5 billion. it would take place as soon as he rent -- year end. norwegian warehouse robotics company is said to be weighing an ipo that the value at $10 billion. it is leaning towards the european exchange for the planned listing, which could come as soon as this year. it specializes in storage

automation. it's technology is deployed at more than 600 sites across 35 countries. we do have lots to come next on "daybreak asia." this is bloomberg. ♪ [ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪

shery: breaking news out of japan. we are getting the jobless rates coming in in the month of may at 3%, which is also higher than the previous month and higher than expected. we had expected a slacker labor market given that we saw the expansion of the state of emergency. that probably weighing on demand for workers in the service sector. when it comes the job applicant ratio, still at that 1.09 level, which is higher than expected. we have seen slacker labor

market conditions in the pmi services numbers, looking ahead also bloomberg intelligence, expecting that the unemployment rate will continue to rise further in june. of course, this pandemic and the slow vaccinations not helping japan at the moment. the jobless rate coming in at 3% for the month of may. let's get to vonnie quinn with the first word headlines. vonnie: thank you. facebook -- two u.s. antitrust cases after a judge ruled that the government failed to establish little network -- social network monopoly. a coalition of states claimed to facebook violated antitrust laws by buying it grandma and whatsapp. the plaintiffs have 30 days to refile their complaints. 11 people are now confirmed dead in the collapse of a residential tower outside miami. more than 150 people are still missing as rescue crews comb through the rubble for a 50 day.

authorities say their efforts are still a search-and-rescue operation but no one has been found alive. the building assessment three years ago warned of major structural damage. hong kong will ban all passenger flights from the u.k., starting thursday. it is labor thing the country extreme -- labeling the country extremely high risk. authorities cited the widespread of the delta strain in the united kingdom. hong kong is prepared to use entry rules for most countries, cutting quarantines from 21 days to global news, 24 hours a day, seven. on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: as we continue to talk about covid resiliency and the slow reopening we see in the -- and the uneven reopening, the u.k.'s seeing its highest number of daily covid cases since january.

20 3000 daily cases on monday, but having said that, the level of hospitalizations and fatalities are much lower than the work and we have seen about over 6% of adults having both shots in over 80% having one shot of the vaccine so far. the prime minister says despite the rising cases, he is still declaring an end to the pandemic on july 19. take a listen. >> with every day that goes by, it is clearer to me and all our advisors, scientific advisors, that we are likely to be in a position on july 19 to say that that really is the terminus and we can go back to life as it was before covid as far as possible. >> we have her the confidence coming from the new health secretary in the u.k. we saw that reshuffle with the previous one resigning. he is saying he was very confident that curbs would be lifted in three weeks as planned

and this coming at a time when they are asked acting a few more weeks to get more second vaccine doses. the u.k. has one of the highest vaccination rates in the world, 57%, which compared to where you are at around 14% is not looking great. no wonder the u.k. has hung onto that top 10 spot in bloomberg's most recent covid resiliency rankings. the u.s. also topping the list with asian and other european countries rounding out the leaders. let's cross to hong kong. such a huge difference that these vaccinations have made over the past few months, right? >> in fact, this much, we have a revamp of the resilience's ranking. we introduced two new metrics. the other one, we count everyplace connectedness with other places in the world and we count how many open travel routes possible for vaccinated travel tourists.

by adding these two, it helps the u.s. come to the number one position because they have the best case scenario of combining fast vaccines as well as drops in case rates and death rates and its opening up to many places in the world and what we are seeing is that europe also is opening up very fast with these new metrics and the previously best performers in the ranking, like new zealand, is falling to number two, and china is also falling. this really shows that we are at the transition period with some places exiting the covid pandemic faster than others. haidi: things change so quickly. australia is still in the top 10. despite the current lockdown, things have been pretty open here but does that just show what the difference between elimination and a suppression strategy does? >> what we are seeing is that these previous covid havens

might be stuck in cycles of opening and then closing down because they found a few new cases. new zealand and australia, earlier, there vaccination rate is less than 15% of their population so this is a serious situation as virus variants are rising, especially the delta variant. we want to see going into july whether the success by europe and the u.s. can continue and whether more and more countries can join them to reopen to the world, or if the other variants because more concern next month. we look forward to the update. shery: jinshan hong in hong kong. our next guest says a variance like delta that is much more transnational -- transmissible is like adding more gasoline to the fire. he is the research group director at the mayo clinic. great to have you with us, dr. poland. tell us about the delta variant

and whether this very infectious virus variant makes it difficult to have an elimination strategy like the ones australia and new zealand retargeting customer >> there is no quick -- work targeting -- were targeting? >> there is no question. it is 50% more transmissible than the u.k. variant, which is 50% more transmissible than the original virus. as i said, that is like adding gasoline to a fire. you can just expect that we are going to see an acceleration in cases. we are now up to about 20% or so of our new infections being this delta variant. haidi: in the u.k., those cases surging despite the fact that we had 50% of the vaccination already vaccinated -- population already vaccinated. what does this mean in terms of

the number of people you need to get vaccinated in your country in order to really be able to safely go out and go back to normal? dr. poland: that is a hard number to come by. we talk about herd immunity as of the population was, you know, the same throughout the nation, and it is not. in the u.s., we have very regional areas that have low immunization rates. they are going to suffer. this delta variant infection is a bad actor. when you look widespread and you try and come up with a number like that, you are probably talking about something north of 80% in order to reach that herd immunity rate. haidi: what does herd immunity look like if this is a seasonal thing we have to deal with like the flu? is it a rolling sense of herd immunity with users zarif humans? dr. poland: i don't think we will -- with boosters every few months? dr. poland: i don't think so.

for people with otherwise normal immune systems. but you are right in talking about the idea that we may well get into a scenario where we will have seasonal recurrence. in other words, endemic virus that seasonally becomes epidemic. haidi: we have had some interesting data about combining vaccines, the delay period between your first shot and second shot. is this useful as we continue to know and will it create a tweaking, tapering of the different types of health guidance in terms of what is really the highest efficacy combination of vaccines and the way that they should be given? dr. poland: you are right. after all, we are building the airplane while we are flying it. we are all learning. we are only 18 months into this area clearly, what we have seen in preliminary data, so-called mix and matching vaccines, seems

to work well and leads to high immunity rates. what we need to know on a wider spread basis is the safety of doing that and the or longevity of that kind of a policy. shery: given how endemic this virus is expected to become, how do you feel about mandatory vaccination? dr. poland: that is a very interesting question. in the u.s., we are kind of a "me" rather than "we" type culture. that's not true in other areas of the world. the only way that we are finally going to combat this is to ensure high rates of immunization and we are already starting to see colleges, universities, businesses, medical centers making the vaccine mandatory. shery: dr. gregory poland, director at the mayo clinic,

great to have you with us. we will continue to take a look at how the global pandemic is affecting the fed honesty direction on what it. we have an exclusive interview with the fed governor. this is bloomberg. ♪

shery: facebook has won a court

ruling, dismissing two monopoly lawsuits filed in the coalition of state that pushed its market cap above the $1 trillion mark. ed ludlow joins us. talk us through the court ruling. how significant was this that it pushed facebook into the $1 trillion club? ed: investors clearly pleased at what they heard. facebook has escaped the most significant threat to its business model despite cross jurisdiction measures. the u.s. district court judge says the fcc and coalition of states just did not prove or pass the burden of proof that facebook didn't have a monopoly. they were not able to define what the market for social networking actually was and they were not able to pass the burden on how much of that market facebook dominated. this is about facebook's acquisition of instagrammed in 2012 and whatsapp in 2014 and these two separate suits that were filed last year argued that

facebook was protecting its own position and stifling competition through those acquisitions, but one of the criticisms the judge had was in the case of the state network has a coalition, they brought their motion so many years after it had already passed scrutiny anyway and of course, facebook, clearly very pleased with the outcome of today's ruling. >> take a look at google. the ad business is facing some heat. what is going on there? ed: the u.s. justice department has ramped up its scrutiny of a particular part of google's business, the display and's or amtek, different from the search is next. basically, google sells ad space to marketers. it won't buy and space for market participants and it acts as a market maker through an online automated auction which works similar to stock trading and the concern from some of the

regulators, antitrust investigators, is that google could be using that part of the ad market to influence its own success in other parts of the ad market. it is the first sign that the biden administration is leading up for following up on a probe launched under the trump administration, that you will remember, the justice department already has a suit filed against google relating to the search. this is their second biggest unit to at. haidi: ed ludlow with the latest on facebook and google. let's take a look at how we are setting up for the market. some parts of that trade fizzing out a little bit. muted going into the asia open? >> nikkei mentors moved to the downside as they digest the latest jobs data from japan. the yen trading study with lower u.s. yields capping the move and we are seeing aussie yields slipping with the tenure rate as much as seven basis points so far this tuesday.

at ing, market pricing for 45 basis points of rba tightening in two years time which is low compared to what was anticipated for new zealand and ahead of the rbnz speech later today, we have the kiwi dollar leading g10 gains this session. the offshore yuan is study around the 646 level as we head into the third quarter which is typically marked by asian forex underperformance against the dollar, but be of a seeing strength for the renminbi, and turning to the oil market, pulling up a chart on the terminal with the opec plus meeting in focus later this week, brent spreads staying in backwardation with crude for august about $.75 above september contracts, signaling market tightness, which is being amplified by increasing physical demand by refiners that have pushed up price differentials and switching out the charts, supply constraints are likely to continue with major oil companies having trimmed their

spending. that is the mayan and white on the chart. this is to embrace esg so the shift to green energy could pave the way for $100 oil according to analysis by the market team on the terminal. haidi: from traditional entity to new energy, voting operating large-scale wind or solar plants in nearly half of the world than it would be to run an existing coal or gas fired power plant according to the latest research from our bloomberg team. let's bring in the person who covers renewable power markets and this is an argument that i think a lot of supporters of renewable power have been pushing for a while here in australia. we are in the world are we seeing renewables being cheaper than fossil fuels? >> thank you. when we compared the cost of building a new power plant, renewable energy like solar and wind have basically won the race against fossil fuels in most countries around the world so

outside of a few exceptions like japan, south korea, and parts of southeast asia, we are seeing companies that now represent more than 90% of globally electric generation. it is already cheaper to build renewable power plants than fossil fuels. what is even more interesting is that in some of these countries, the cost of renewables has fallen so low that building new solar or wind is cheaper than running the existing fossil fuel plants. we find in countries like china, india, sweden, and brazil, shoveling coal into an existing power plant is now more expensive than just building a new solar or wind planting and this is an important tipping point because it really signals an accelerated growth of renewable energy in these markets. shery: what can other regions do to make renewables more competitive? david: we see competition and scale as the two main drivers that bring down the cost of

renewable energy. if we look at countries like china and india, where solar projects are built at one fourth price of japan, for example, the market bears are fiercely cutting costs and margins to win the national auction and that is leading to larger scale objects that can benefit from economies of scale which all help achieve lower prices. but if we look at markets with high renewable energy costs like japan and south korea, most projects still rely on generous government subsidies which limits the competition in the market. these countries also suffer from complex land regulations and opposition from local communities on solar and wind projects. bella burns are finding large-scale sites. these markets ringed down the cost of renewables, shifting to a competitive and transparent system as well as simplifying land regulations and permits. that will be very important. haidi: how do rising commodities

prices sit in this equation, david? david: we are seeing higher commodity prices affecting equipment. but on a macro level, we don't see the derailing, the declining cost trajectory of renewable energy. one of the main stocks for solar panels has gone up compared to last year. we estimate that this will -- 5% globally. another way is steel, the main material for wind turbines and the prices have gone up by two times in china and three times in north america. in the past one year. in india, for example, we are seeing a 3% to 5% increase in wind turbine prices but despite the rising equipment prices, the final cost of solar and wind projects, have remained relatively unchanged from last year and that is because cost

reductions are continuing in other areas like construction costs and three economies of scale by building larger and larger projects. the rising commodity prices -- in the near term, but we think the long-term will continue. shery: -- haidi: david, great to have your analysis. david kang. breaking news crossing the bloomberg. this is the may retail sales numbers out for japan. we have retail sales yuan year, a site beat, 8.2%. consensus was 8.1%, but still, a pullback from april's percent number. retail sales month on month seeing a contraction of .4%, not as its. -- not as severe as what expected. that is slightly better than the almost 5% contraction we saw in the previous month. pro can down by department store and supermarket sales, five point 7%, missing expectations. state of emergency continuing to

weigh on those numbers. plenty more to come on "daybreak asia." this is bloomberg. ♪

haidi: the past year has transformed nearly every aspect of our world. dramatic shifts in jobs, communications, and finances. that is under discussion at berg

new economy catalyst virtual event. the co-ceo of after pay spoke to us about their global ambitions and how millennials are driving these trends. >> very interesting last 12 month period. from our perspective, the primary shift has been away from credit to debit and you are seeing that subsequently translate into significant lift in by now, pay later demand. the next generation consumer is only getting more powerful in their impact on the economy given they now contribute 30% of retail and in 10 years will contribute 50% of retail so we are seeing their trends really start to permeate throughout the broader ecosystem and we have been fortunate to partner with the best brand in the world that has continued to take us global. >> it's funny because it is like a sense of democratization to access finance. i think you are

alluding to that for the next-generation pit what kind of regulatory and government role do you see in this? >> it's a really important topic for us. from day one, we have always been pro-regulation. what you are seeing is two out of three millennials in the u.s. and australia do not own a credit card anymore. they use debit cards. 90% of our consumers use a debit card, not a credit card. it means traditional forms of assessing credit are not as accurate or indicative of someone's risk profile as they used to be given this generation is spending money fundamentally differently so that way we thought about our model where we disable someone's account the moment that they are late so they cannot keep shopping, you know, that is the opposite of a credit provider, that desires someone to be outstanding for as long as possible because that is how income is earned. definitely a really important topic for us to keep having the right conversations with

regulators throughout the world. shery: we have heard chatter that your platform will be incorporating copter currencies when it comes to payment methods. is there a plan? nick: you have definitely seen a variety of trends that millennials have led over the recent months. in many instances, this is showing that the millennial cohort can have a very meaningful impact in a short window of time on the broader ecosystem so crypto is something we have been following. there is a huge amount of demand in our core consumer base and more importantly, it shows the macro trend of how millennials are having their impact and their preferences are starting to become the trend in the economy. shery: nick speaking exclusively to us a little earlier. we will have more guests from bloomberg's first new economy catalyst virtual event. we will hear from the ceo of a southeast asian e-commerce

platform later. haidi: we have the market open coming up in the next few minutes in sydney, seoul, and tokyo. we are looking muted. we saw parts of the reflation trade sizzle overnight making a bit of a recovery. lots more to come. this is bloomberg. ♪

shery: hello "bloomberg daybreak: asia." haidi: i'm haidi stroud-watts in sydney taking a look at major markets across asia. asians shot -- stocks look set for a mixed session as the reflation trade losing steam. banking shares jumped in extended trade as wall street enters -- wall street has a bonanza buybacks and dividends.

and billions of. dollars into key industries. let's. get you to the market -- let's get used to the market opens in so, tokyo, and city. sophie: opening lower with the topics losing .6% with the reflation trade stalling in asia. yen holding steady with the latest data from japan, jobless higher to 3% inmate. we did see a drop in japan's retail sales narrowing. circulation billing on the size of the extra budget expected to be a record. yonhap news reporting already 3 trillion you want could beat this number as the country takes a bullish look on growth to 4.2% and korean bond futures tech higher sapping declines we have seen lightly. markets are pricing for a hawkish rate outlook for the be ok. the korean won holding around 1130 and the kospi under pressure.

switching the board for the staggered open in sydney this morning. let's look at what is going on. the ac asked off .3% the aussie bonds gaining ground with the 10 year yield losing 5-7 basis points this morning. the kiwi dollar leading g10 gains ahead of the rba governor's speech tuesday. in oil we have seen brett opening to the downside. and currency markets, a focus on the dollar holding steady this morning. we had ubs saying, southeast asian markets could outperform the north asian counterparts in the second half of the year as vaccinations and reopening's gain ground. philippines joining the list of emerging-market bond issuers pricing $3 billion worth of bonds. shery: our next guest saying north asia may be shielded from underperformance by being a manufacturing export hub. the spread of the delta variant is that key tail risk for the region.

let's bring in the tv investment strategist at lgt bank -- let's bring in the chief investment strategist at lgt bank. the question of the day on mliv ask which stock markets will outperform in the third quarter? >> we are still skewed toward the developed markets because the numbers coming out of the united states and europe, and japan when it comes to the economy, arst drake -- staggering -- are staggeringly strong. there is a major economic boom and the consumer is being supported by pent-up savings. we are seeing the start of that more than the end of it. so that is certainly where we would focus on. in terms of sectors, still the value reflation and reopening trade that makes sense for us for the time being. shery: in april we had lgt bank more optimistic when it comes to central banks holding steady.

as time goes by we think inflation concerns in emerging markets. the gtv chart already showing a rate premium, as compared to developing nations. does this tightening concern you about a future potential in those markets? >> that is an important point and i think we are going to get more clarity on that friday, with u.s. labor market report. if we get a strong number, say 800,000, that will lend more weight to the argument that central banks and the fed can become incrementally more hawkish and continue that pivot. then the delicate balancing act is, how do you do that without causing market concerns or volatility or eight 2013

scenario. so that is where the focus is more than anything else. shery: what does it tell you about the sectors that you like at this point? >> well, it is complicated because at the end of the day, the recovery and reflation trades, we are still of the view that the inflation pickup is going to be transitory and so what you do after that? the short answer is to go back to quality growth. that has been extremely rewarding for investors for a very long time. this idea that the cyclicals outperforming quality growth, that is actually a rare phenomenon. if all things work out, we are going to go back to quality growth themes. haidi: one of the assumptions you're making is for most of the world to be fully vaccinated by the end of the second quarter. is that still in outlook your optimistic about? how much does that create potential downside, with the

resurgence of the delta variant and potential future variants we do not know about yet? >> this is an important tell risk that, unfortunately, we have to monitor very closely. authorities around the world are reacting fairly quickly to try to stem the spread of the delta variant. there has been some research that says particular vaccines, if you have two doses of those, you have a relatively high efficacy against delta. definitely it is now the key tell risk to watch. it could potentially derail things but that is not our baseline view for now. haidi: in terms of market leadership are you still going back to the bread and butter of what happens with rates? in that case you see further upside an opportunity for cyclicals in areas like japan? >> yeah, japan is a good example of that. it is a deeply cyclical economy.

manufacturing export are extremely important. they have the exact same issues with regard to supply bottlenecks, too much demand and not enough supply. prices are going to rise there, too, at least for customers, maybe not so much as in europe and the united states. profitability in the japanese market alongside europe should do better in the second half of the are relative to the united states which is argued lee past that peak in terms of -- arguably pass the peak in terms of eps growth. >> let's get you to vonnie quinn with first word headlines. vonnie: a new study found mixing deltas -- mixing doses of pfizer and astrazeneca vaccine crates a strong immune response. it could enable --options.

according to the study resulted in efficacy given four weeks apart. indonesia will offer covered vaccinations to people aged 12-17 after extending inoculations to all adults. central java problem says are moving strict lockdowns that will affect a court of the population after cases tripled last month. elsewhere malaysia unveiled a relief package to help people through a nationwide lockdown extended for a second time. india unveiled more support for the pandemic economy including a 50% expansion in the emergency credit program and assistance for the health care and tourism sectors. the measures will help asia's third-largest economy as it shows signs of recovery. after waves of covid. hong kong will ban passenger flights from the u.k. starting

thursday. it is labeling the country extremely high risk as it loosens entry requirements for travelers from most other parts of the world. authorities cited a widespread of the delta strain in the ok and hong kong is preparing to ease entry rules for most countries, cutting the hotel quarantine from 21 days to seven days. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: the u.s. house of representatives passed two bills aimed at increasingly -- increasing american ability to compete with china. the bipartisan legislation authorizes $128 billion in combined funding to boost research and development. our managing editor has been tracking the story. dan, we understand this will be one of the foundational blocks of how washington is planning to boost its own competitiveness.

dan, do we have you? it does not look like we have dan kincaid at the moment. we will try to get back with him to get more on that story. we will also be getting just ahead a look at an international earnings report and the vice chair will join us with his outlook when it comes to the resumption of tourism and the impact of the pandemic and the chinese shopper. next, u.s. banks sting payouts and buybacks after they pass the stress test with flying covers just flying colors, details next. this is bloomberg. ♪

haidi: let's get back to the story we started telling you about, the u.s. house of representatives passing two

bills aimed at increasing american ability to compete with china. the bipartisan legislation authorizes $120 billion in funding to boost research and development. our asia government managing editor dan kincaid has been tracking the story. this comes on top of the $50 billion him into that tip sector alone. these are -- into the chip sector alone. these are building block to counter the rise of beijing. >> that is right. basically, lawmakers and d.c. have been worried the u.s. is falling behind on chip reduction and they are relying on other places to produce these chips. the u.s. has a lot of the underlying technology for this. but want to ensure dominating the space and they are's ahead. -- in that year's ahead. -- in the years ahead.

and the chips and ai that will be used in vehicles and industries driving growth. shery:shery: how does this impact the u.s. china relationship? >> the u.s. has been blocking china since the trump days from getting certain technologies. you know, it started with huawei and ct -- zte, and now has been formalized and codified by the biden administration which has kept in a lot of these policies. it is basically two-pronged. the u.s. is going to invest in itself, and develop its own capabilities to produce these things. at the same time, trying to deny china the technology it needs to do this kind of work and self. -- itself. china's response has been to do a must the same thing.

there's is a big self-sufficiency push from xi jinping to invest in these types of technologies. so you kind of have a race developing to see who can produce at. the bottom line is, neither country trust the other one to rely on each other. shery: beijing has been adamant any progress in the relationship would depend on lifting tariffs from the trump administration, right? how we seem progress on the trade side? >> we have seen flickers of hope . there have been conversations between trade officials, so they are starting initial discussions. but we are far from a substantive agreement that would lead to the lifting of tariffs. politically, that is difficult to happen now in washington,

d.c., and in beijing, it is difficult to relent on anything as well. so the politics are still not conducive to an agreement that would see those lifted but you do see conversations happening that could be building blocks to something in the future. shery: dan kincaid, do keep us updated, bloomberg managing editor joining us from hong kong. biggest u.s. banks boozing payouts and continuing buybacks after clearing the stress test by the feds. morgan stanley doubling its quarterly dividend to $.70 and goldman sachs increasing its payouts to two dollars per share. let's bring in our finance reporter. morgan stanley did not disappoint, leading the pack. >> absolutely, shareholders had a lot of expectations today and four hours ago the banks were allowed to start hang what they could do in terms of capital --

the banks were allowed to start saying what they could do in terms of capital management. morgan stanley doubled its quarterly dividend and announced as much as 12:00 dollars in stock buybacks. there are the first of the u.s. banks to respond to their success and clearing the stress test. the ceo saying morgan stanley accumulated significant access capital over the past several years and now has one of the largest capital buffers in the industry. shery: we also heard from goldman sachs and j.p. morgan and wells fargo. how did the other banks do? >> wells fargo was another standout and they doubled their dividend, and announced an $18 billion buyback. jp morgan boosted their dividend by 11% to one dollar per share. bank of america said it's dividend would rise 17%. goldman sachs plan to increased its dividend to two dollars per share. shery: what does this mean for banks and other regions?

-- banks other regions -- banks in other regions. >> european banks are waiting to hear at the ecb will let them announced capital buyback plant. regulators around -- capital buyback plans. regulators curb banks from dividends and buybacks and the ecb is expected to review their decision. at the moment banks in europe are not allowed to do anything until about september. we are expecting to hear something earlier in the summer. here in australia, the australian banks are sitting on about $30 billion aussie in cash they are expected to be handing out over the next year. shery: our finance reporter. coming up, shakeup in the bloomberg cobit resiliency rankings. we will tell you the -- bloomberg covid-19 resiliency rankings. we will tell you the best and worst place to be and why the u.s. is at the top.

this is bloomberg. ♪

shery: almost a year and a half into the pandemic, the best and worst places to be in the covid-19 era, are increasingly defined by one thing. according to bloomberg's covid resilience ranking, the u.s. is leading the way. what a difference 18 months makes, right? is that all to do with those vaccination rates? >> yes. this month we are bringing you a new matrix on the covid resilience ranking. we introduce a reopening panel where you can see flight capacity recovery and travel possibilities for vaccinated people around the globe. with these new additions we see the u.s. with an astonishing turnaround in the rankings

topping the 53 economies we are ranking now. because they really how this best case scenario after the vaccination rate comes up. cases and deaths plunged and now the company is opening up and life is resuming to be normal. what we are seeing now is that the previous high-ranking places in asia pacific especially new zealand, china, hong kong, they used to be covid zero havens but the methods they use to stem the virus inside their borders is now preventing them to reconnect with the world. so this is the direction we are going to continue to track next month. haidi: australia isn't that fortress zero group -- of course australia is in that fortress zero group. so the travel metrics are the major change here? >> yes, yes, we really want to see what other places are quickest to rejoin the world. according to this new travel matrix conceit european

countries are the fastest not to reopen to vaccinated tourists. because of this, it is also important for us to continue to watch the spread of delta variant, because with the u.k. situation now, they delayed a reopening one month. israel as well, the reinstated a mask mandate indoors, as well as delaying their opening to tourists by one month. so this shows we are at a cross point now to see where the pandemic will go because we do not really know with the widespread of virus in the developing world or other turnarounds in the pandemic. haidi: going into july, what is the focus? >> we will continue to see if the success by the u.s. and parts of europe will continue. or if the delta variant will challenge the places opening. and we also want to see how quickly the other places in the

world can ramp up their vaccinations. there is a very rich -- there is a big rich-poor divide in vaccinations in the world. if you look at philippines, india and argentina, other asian and south american countries. we really want to see when the world can exit the pandemic altogether. haidi: the latest covid resilience rankings. one thing we also watch out for the return to normal is what normal looks like as people had back to the office. or, in some cases, they do not had back to the office. we hear that think they financial, the bank that -- synchrony financial which provides credit card backing to paypal in the u.s. says even if you can't come back to the office five days a week,

employee should not be. they are offering choices and one is if you want to work remotely completely if you're not close when office and the second option, like desk share, you can book in space if you want to come in spontaneously, and a hybrid option. we note even though ubs is offering a hybrid model, most of wall street really wants workers , as soon as next week, to get back into offices. shery: that is what is luring people over, right? you have the flexibility. sources telling us ubs will offer the hybrid model to make it easier for them to recruit versus all those more hardline policies from other banks. when it comes to numbers, zip recruiter is saying the number of job ads mentioned a four-day workweek have troubled in the past three years. we have seen a surge also for the u.s. of --in 2020, 64%

surge. and facebook employees may work at home 50% of the time. so it is all about the flexibility in the post-pandemic world. haidi: it is, you take a look at the numbers and financial services. cbre sing a third of respondents, most people already back in the office -- saying that a third-most people back in the office and thinking i will be back in the office this year. we talk about looking for signs of tricking office space but according to that report less than 10% of respondents say they see a smaller bricks and mortar office footprint. it does remain to be seen. this is one of the hot topics as the world gets back to a post-pandemic normal. let's get a quick check of the latest business flash headlines with a norwegian warehouse robotics company. a deal that could value it at $10 billion, leaning toward the

european exchange and it could come as soon as this year. also one that specializes in terms of qubit storage automation and the technology is deployed at six undersides in 35 countries. south korea's bank is planning an ipo, the internet only lender is selling 65 million shares that could push its market capitalization to 16 billion making it south korea's third most valuable lender. an affiliate has been given preliminary approval for its ipo, kakao pay. if carousel is considering a u.s. listing by a spac merger, it is said to be looking at a potential deal that could value the company at $1.5 billion to take place as soon as the end of the year. carousel would join a growing list of southeast asian countries planning spac listings in the u.s.. coming up next on "bloomberg

daybreak: asia." we will talk all things crypto with a fast-growing exchange, stx. more on bloomberg tv including the laser industrial development finance group. 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.

vonnie: this is "bloomberg daybreak: asia." the house passed two bills aimed at increasing america's ability to compete with china. bipartisan bills authorize $128 billion to boost u.s. research and development. the legislation is similar to a senate bill earlier this year which means differences will have to be negotiated before of final version goes for about. p--- a vote.

the biden administration defended decision to launch airstrikes. in rome secretary antony blinken said the rates were necessary as a deterrent and the u.s. would not hesitate to protect its interests in the middle east. >> the strike last night at the president's direction u.s. military forces inducted airstrikes against vassilis -- facilities used by iranian backed militias in the syria border region. they targeted facilities used by groups responsible for recent attacks on u.s. interests interact. specifically -- interest in iraq. they targeted operational weapons storage facilities and two locations in syria. one location in iraq. . vonnie: facebook one the dismissal of two u.s. antitrust cases after a judge ruled the government did not establish the social network has met all it -- a monopoly. saying facebook violated antitrust laws by buying instagram and whatsapp. plaintiffs have 30 days to refile a complaint.

global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: broad downside pressure across asia asia seeing its worst day in awake. sophie: credit markets, busy start to the week here in asia with sovereign adding to the new issuance. the philippines sold three billion worth of dollar bonds in the extra budget pricing a 10.5-year note at an hour premium over treasury 60 basis points compared to the 784 december. -- the 70 that we saw four december. e.m. spreads have tightened despite the talk of fed tapering. green bonds raised billions of dollars for proceeds to be used for battery recycling and seller businesses. an honda shifting its speeding

up a shift toward evs. switching out the board to check out non-south korea as we digest the updates in the ruling party saying come the extra budget will be 33,000,000,000,001, the kospi working to the downside and the korean won steady this mining and the asx 200 under pressure led lower by defensive utilities and reflation plays industrials and metals. financials also losing ground. but jeffrey sang by australian acts on any lockdown to. -- every saying by australian banks on any lockdown dip. shery: beauty products maker l'occitaine, the company says retail channels were hit by reduced air traffic, lockdowns and shop closures in key markets. net sales in china jumped 33% on

year making it the company's largest market. joining us from hong kong is the group chairman. great to have you with us. is china the fastest recovery market? where are you seeing the bright spots across the region? >> china was one of the first countries to be had by covid. it was obviously one of the first countries to get out of the problem. we saw very strong growth accelerating through the year. it was our fastest growing market, led by e-commerce because our e-commerce business in china grew 63% for the full year. but our brick-and-mortar stores work -- recovered also nicely angry by 23% for the full year -- also nicely and grow 23% the full year. we are optimistic china is on its way to another strong year. this april and may we were trending strong growth compared to last year. shery: now that we are headed

into the post-pandemic world and you mentioned how ease commerce -- e-commerce was a driver of growth, what happens next? >> we continue to have some stores closed because of covid restrictions. we continue to push all things digital. last year we were able to pivot quickly, to our online strategy, by doing social selling. this brought strong adult. -- strong results. we feel this will continue and there will be a world where people will want to shop both online and off-line. so we do not feel it is one or the other, we think it is an omni-channel approach we have been pursuing the past several years. haidi: how has the brand performed across different asia markets? there has been a shifting trend particularly in china, to embrace more made in china domestic brands and marketing? >> we don't feel that is really

impacting us so much. of course, there are always new brands entering the marketplace. but we had a very strong year because we have categories like hand care, body care, soaps, that really -- demand spiked with covid. and we will continue to protect those businesses. but at the same time we feel there is an enormous opportunity to push haircare and face care which are two segments that were underrepresented in china today. haidi: when it comes to the supply side, have you seen an impact, adverse or otherwise from increasing commodities and resources prices, as well as distribution issues related to covid-19 -- mobility supply chains and the like? >> actually, there has been a lot of pressure from sample suppliers, particularly in packaging. aluminum, which we use for hand cream tubes, paper, cardboard, some plastic.

they have had aggressive requests for price increases. but we have been largely able to mitigate this through our long-term partnerships, long-term supply agreements. where we have had some impact is on freight, specifically ocean freight. those prices have increased significant over the past 12 months. but the net effect of all of this is not really significant on the group's results. i think we've estimated the total increase across is close to 2 million euros. really, we are talking about .01% of our annual revenue, so it is short-term pressure and we think it will be alleviated in the coming months. shery: i have to confess i have not worn perfume since the pandemic started. i would not have worn makeup if it was not for television. so how do you expect consumer behavior to have changed? is that affecting decision to make in your product mix? >> well, i think you need to

start wearing fragrance because it is proven to put you in a good mood. , -- look, our core strengths body care, hand care. even if you do not socialize you still want your skin soft, and you want to have this feeling of well-being, which we know our products give you. really, as we have seen, during boom times, during difficult economic times, this category of products seems to perform quite well. so i do not feel there is a long-term negative trend of consumption on beauty coming from covid. on the contrary, i think provided the consumer can access your products, and you have enough touch points, which is what we hope online will give us, there should not really be a significant downturn. shery: are you expecting more increases in costs? heidi mentioned the supply chain

disruptions but what about marketing and this tradition costs as well? >> marketing tends to be stable for our group. we have recently acquired a new brand two years ago, the leading british premium skincare brand. up until the time we acquired it, 80% of its revenue came from the u.s. and u.k., his home market. now we are rolling it out globally. in asia we launched last year and the strategic chinese market. we are launching it in korea, taiwan, japan, southeast asia. so, as we launch a new markets, marketing costs go up initially but as revenue starts coming in we think marketing costs will stabilize but we have great ambition because we think it is a jewel and an opportunity to build a strong brand. haidi: anymore jules you are

looking to add to that crowd? -- jewels you are looking to add to that crown? >> we are always looking, trying to find a diamond in the rough. the category is expensive today, so you have to find the right bargain -- target with strong management team. that will come with the company, obviously, yes, we are always looking. shery: thank you for giving us the picture on everything retail and products l'occitane international vice chairman. news from bloomberg intelligence, new research coming out, bi nike and adidas could be struggling to regain mainland china market share in the second half of the year. haidi: there have been geopolitical elements as well,

affecting them and h&m after saying they would not use cotton sourced from xianjiang, over human rights violations. and we are seeing interest in domestic crowns like some of these made in china brands. we saw an incredible amount of retail interest in the bubble tea chain. it looks like whether you are a chinese consumer or investor, maybe it is going to be harder -- a chinese consumer chinese investor, maybe it will be harder for overseas in foreign brands to get their share of that money going forward. shery: let's turn to travel and a reopening trade ongoing. royal caribbean cruises ceo saying most of the company ships should be operating by that year and after a 15 month pandemic shutdown and told bloomberg all crewmembers will be vaccinated

with ford bookings showing strong customer demand. >> we require every member of our crew to be vaccinated. that is something we are looking out for our eventual return to the office for employees. >> what about being able to mandate people who come on board our -- are too? would you like that ability? >> the bulk of our guests want to be vaccinated. so on this ship although we said we would accept people who are not vaccinated, we have ended up with only 1% of everybody on board who has not been vaccinated. so i think the process is working. the vast bulk of everyone is vaccinated. and vaccines are amazingly effective. shery: carnival cruise lines looking for the full fleet to be operating by next spring. when are you looking at full capacity and full fleet, is it coming later than you might have

wanted? >> we are 15 months later than i would have wanted [laughter] it has been a long 15 months. but we are coming back very quickly. we have the first ship that started operating out of the u.s.. remember, we have been up running abroad for a while. we also will have this friday the second ship operating out of the u.s.. we really feel it is important to get the flywheel going. we are constraining, choosing to constrain capacity so we can learn because we have to learn. and our objective is to bring our ships back fairly quickly, and i would expect the majority of our fleet to be back operating before the end of the air. >> have you had any staffing issue so far? >> as we know in the united states, hospitality has had trouble getting people. but absolutely not. our people are so happy to be back. the welcome i received coming on

board, the enthusiasm of the crew, is amazing. we do have problems because some of the countries we recruit from, such as india, have had outbreaks and put in place restrictions. but even having to overcome those, our crew is so anxious to get back, we have already vaccinated 22,000 of them. so it has not been an issue and we do not think it will be. >> enthusiasm from your employees and the enthusiasm from the investor base? blind you think you will be able to reward them with a cash flow positive business again when you are having to operate at 40% capacity? >> we have not made any public estimates of that so i cannot talk about it here. but we have talked about the fact that our ford bookings, particularly into 2022 and 2023, have supported our view that people are desperate to get back out of the house, to get to do things.

so we are amazingly happy with our kings 420 22 and 2023 -- our bookings port 2022 and 2023. haidi: we will also ask the question of how the pandemic is affecting fed policy and exclusive interview. lots more ahead. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. biggest banks looked at disturbing capital after the fed used in districts -- restrictions on dividends and buybacks. as much as $12 billion and buybacks by one bank and goldman said it is boosting a dividend by sick 2% and and j.p. morgan and bank america also increasing payouts --. jeffries quarterly revenue exceeded analyst estimates and it said it's dealmaking backlog is at a record level. revenue for the previous quarter surged 70% from year earlier driven mostly by investment banking. the firm boosted its dividend by 2% to $.25 per share. kathy woods arc investment management is the latest company to list an exchange credit crypto fund if approved by the sec, the etf will track

performance of the world's largest crypto currency as mentioned by the s&p bitcoin index. so far there are 10 bitcoin etf's filed with the sec which last week postponed a decision to approve one of them. shery: take a look at how bitcoin is trading at the moment. we are see it close to $35,000 after rising 6% in the new york session and we are seeing gains of .7%. this is despite the fact we also have the u.k. banning binance from regular operations not to mention the wider cracked and we are seeing in china. we are seeing the galaxy crypto index here at bloomberg gaining ground more than 1%, being weighed down by the theory of down .3%. -- ethereum down .3%. it is all about regulatory concerns. jp morgan advising near term caution when it comes to prices on bitcoin. haidi: and of course bitcoin has

been one of the transformative stories we have been following, and what has been a transformative year since covid, or 18 months. every aspect of the world, financial markets, shifts and jobs and commit a case in's. when it comes to -- and communications. wednesday's bloomberg new economy catalyst virtual event, one purchase meant spoke to us about how millennials are driving new trends. >> obviously interest in the last 12 months, from our perspective, the primary shift has been away from credit to debit and you are seeing that subsequently translate into a lift in by now and pay later demand. the next generation is getting more powerful in their impact on the economy given they now contribute 30% of retail and in 10 years will contribute 50% of retail. so we are seeing their trends

start to permeate throughout the broader ecosystems. we have been fortunate to partner with some of the best brands in the world to take as global. haidi: it is like a sense of democratization this access to finance you are alluding to for the next generation. what kind of a regulatory and government role do you see in this? >> look, it has been a, it is a really important topic for us, from day one, we have been progress. you know, what your stash we have been pro-regulation. what you are saying is two out of three millennials do not own a credit card anymore and they use debit cards. 90% of our consumers use a debit card and not a credit card. it does mean traditional forms of assessing credit are not as accurate, or as indicative of someone's risk profile as they used to be given this generation is spending money fundamentally differently. the way we have thought about our model, where we disable some

is account the moment that they are late so they cannot keep shopping, that is the opposite of eight credit provider that desire someone to be outstanding for as long as possible because that is how income is earned. definitely an important topic for us to have the right conversations with regulators throughout the world. shery: we have heard chatter perhaps your platform would incorporate cryptocurrencies when it comes to payment methods. is there a plan? >> you have seen a variety of trends let else have led over recent months. in many instances this is showing the millennial cohort can have a very meaningful impact in a short window of time on the broader ecosystem. so crypto is definitely something we have been following and there is a huge amount of demand from our consumer base and more importantly it shows the macro trend of how millennials are really having their impact, and their preferences are starting to become the trend in the economy.

shery: co-ceo of afterpay speaking exclusively to us earlier. more guests from bloomberg's first economy catalyst throughout the day. we will hear from the ceo of a southeast asian e-commerce platform, zilingo. this is bloomberg. ♪

haidi: asian markets are bouncing around with a muted first hour of trading as we had the reflation trade. take a step down in that u.s. session, concerns about --being reimposed. concerns from u.k. and here in australia we are under lockdown. the nikkei 225 down .8% despite cyclicals trying to stay above water. we had a mixed bag of retail and jobs numbers earlier. we are seeing the kospi off .4%. some of the underperformers there. australia and south korea seeing less underperformance, .6% over trading in sydney. new zealand up .25% in a mixed session. shery: a mixed session today. it is coming on the back of inflows when it comes to emerging markets especially in the etf side of things. when it comes to picking winners in the e.m. affects space it has to do with the emergence and

policy, right? -- em fx space, it has to do with diverting policy, right? you have a rate premium in emerging markets already. the recent winners on fx have been the mexican peso, brazil and hungry because we saw central banks raising rates this month protecting that relative yield advantage against accelerating prices, not to mention the prospects of rising u.s. rates. so it is really all about turning hawkish rhetoric into hawkish action. haidi: yes, talk about on the others of the spectrum, the interest and growth diversions crating opportunities in emerging markets -- creating opportunities in emerging markets. etf seeing a 34th straight week of inflows when it comes to emerging markets, the bulk of that money going into markets like china and hong kong last week, third of last week's inflows owing to those markets. vanguard's new etf showing a

$545 million dollar inflow, its biggest in any month of june. we are seeing incredible interest when it comes to, investment interest across developing nations as well as the ones that are specific country related. we think about china of course. shery: i was going to mention bargain-hunting because we have seen that pressure on those chinese stocks, right? this coming at a time, an important time for the communist party. haidi: yes, chinese leader xi jinping. let's get you live pictures now. we love pomp and ceremony, dummy? -- don't we? he has said to present -- set to present metals to -model- medals to model calmness party members. you see that motorcade coming up to people in the heart of beijing, what looks like a lot of students there waving at the motorcade, as it draws and. -- in.

we expect lots of medals to be given to key come at his party members as we get into that 100 anniversary, live pictures from beijing. we will continue to bring that to live. this is bloomberg. ♪

>> it is 9:00 in beijing and hong kong. i am yvonne man. our top stories, the u.s. house passes a bill designed to challenge china's rise and log $108 billion in funding focused on science and energy. china begins a celebration for the commonest party.