haidi: hello, and welcome to "daybreak asia." sophie: i am sophie kamaruddin in hong kong. shery: good evening. i am shery ahn. our top stories this hour. agent docs are on track for the worst week since may as fears grow that a virus resurgence could hamper the global economic recovery. pfizer plans to seek u.s. emergency authorization for a

booster dose of its covid-19 vaccine. it says trial showed dramatic positive results. local taxation tops the agenda as g20 finance ministers and central bankers meet in venice. the oecd calls the proposal there. haidi: we see that reflation trade fading fast globally including here in asia. let's look at how we are setting up for the friday session. sophie: we are seeing a risk-off tone for market. futures posting lower as numbers continue for regional stocks in a shot, set for the biggest weekly drop since mid-may. at around pre-pandemic lows. hong kong stocks have been the worst hit in the region. the hang seng in the red for the year and the hang seng text gauge eyeing a bear market. they also have deepened amid the tech crackdown and switching out the chart, division signals from authorities have pushed the china 10 year yield to an 11 month low, breaching that 3%

level for the first time since august and over at citi, they say we could see a push towards 2.95% among this unwind of expectations and fears for china. we are seeing the offshore yuan hovering around the 650 level. and switching out the chart amid the global bond rally, treasuries are on course for the best week in 13 months as the reflation trade hits speed bumps over at j.p. morgan asset management, blackrock, and goldman. they are not giving up on reflation bets. at morgan stanley, treasuries arriving -- rising back towards 175. shery: treasury yields falling. not just treasury yields, but global bond yields. investors should prepare for an environment that looks like a pre-pandemic world. we are joined by marvin loh. always great having you with us. this pre-pandemic world, this

chart on the bloomberg showing how u.s. eco-surprises have really does it. does that mean we are talking about slower growth and low inflation? >> certainly, growth is still going to be robust. there is so much stimulus in the system, that will take a while for it to make its way through the system but in terms of reflation, reflation requires, you know, not only the continual increase in growth, i think there is a fiscal component to it and we are seeing how hard it is to get the fiscal impulse to carry through beyond. so when we look -- whether it is late 2022 or into 2023, we are in an environment where monetary policy continues to drive a lot of the excess growth and we know what that sort of looks like, which is lower yields. we will have a lot more debt service and as a result of that, i think the growth file that looks more like 2018, let's say,

then what we are seeing this year and next year, is something that the markets are starting to look at, i believe. shery: does that include the rest of the world? we have seen the pboc signaling from state authorities that they could be turning dovish. marvin: it is a sign of how challenging the reopening process is. we are coming through a pandemic. certainly, we have 100 year type issues that we are dealing with. and you know, what the pboc is going through as well as these variants that keep popping up around the world. it will be an uneven process and may be normalization and tightening the lessee is not necessarily going to be as fluid and easy -- as planned as a lot of central banks are talking about. haidi: where does the dollar go from here? we are seeing that ever highlighted disparity between

various economy is and how covid has been handled. marvin: i mean, we are still in the camp that we could see a weaker dollar. until we flush through some of these growth concerns. it is in an adjustment period. we upgraded growth significantly, not only in the u.s., but in europe and around the world, and now, we are taking some of that back so until we find a base around that, i think either a choppy type in an -- type of environment around the dollar and strength around this volatility is something that people should put into their thought process and certainly has a bigger impactm on the emerging markets but certainly around europe and their growth prospects and a divergence, if you will. we can get growth in the u.s. with the amount of stimulus we put into the system, then what does that mean for the rest of the world? >> what do you make of the investment case for china tech in the u.s.? marvin: certainly, it is challenging.

not only are we talking about the growth type of environment where we are adjusting, but certainly, the authorities are looking to get involved in that. i think with everything else that is going on in the world, at the moment, it is hard to kind of make a case right now to take an excessive amount of risk around that. shery: what are you expecting to see from jackson hole? that seems to be where analysts and investors are focused on. marvin: jackson hole is important because it will be probably the start of the official tapir discussion, if you will, and you know, remember, the taper process is likely going to be gradual. there is still a lot of liquidity in the system so in terms of the risk assets, because of the amount of liquidity, that is something investors can count on for a while, but it will start the normalization process and i think it is already being fairly

well translated to the markets. i would not expect too big of a shock around it. quite frankly, if we are worried about growth issues going forward, not rate hike concern that comes after tapering might not be as intense as it was even six weeks ago. >> marvin, always great to have you with us. arson low for state street. let's get you to su keenan, who has our first word headlines. su: we start with president biden who says the u.s. is on track to end its military mission in afghanistan by august 31 even as the taliban makes gains amid the withdrawal. write and reflected on america's longest war, which will end before the 20th anniversary of the 9/11 terrorist attack. while the u.s. will continue to provide support, it is not there to build the nation, adding others must step up their efforts. pres. biden: u.s. support for the people of afghanistan will

endure. we will continue to provide civilian and humanitarian assistance, including speaking out for the rights of women and girls. su: meanwhile, a top e.u. official says the potential closure of the only remaining border crossing to which humanitarian aid can enter parts of syria, which are held by government insurgents, would be catastrophic for millions of civilians. the e.u. commissioner for crisis management made the comments ahead of a crucial vote at the un security council to decide whether to keep the crossing from turkey open. it is due to close on saturday. we are told china's aviation officials are willing to conduct test flights on boeings beleaguered 737 max jet. it marks a step forward in possibl lifting the planes to year -- possibly lifting the plane's two-year grounding. the max has been cleared by more than 170 other countries.

finally, twitter has pledged to fully comply with india's new internet regulations, joining the likes of facebook and whatsapp in doing so. india's government has been embroiled in a dispute over rules critics say cut free speech and privacy. indian officials commanded twitter and facebook follow regulatory rules including taking down hundreds of posts and divulging sensitive user data or see its executives face possible jail time. 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 su keenan. this is bloomberg. shery: still ahead, japan is holding an olympics like no other. a look at how the virus's emergency will impact the tokyo gains and the economy. this is bloomberg. ♪

haidi: pfizer plans to request u.s. emergency authorization next month for a booster dose of its covid-19 vaccine after claiming early data shows it can sharply in recent immune action against covid variants. drew armstrong joins us now. what we know about the performance of the two initial doses and now the booster that is seeking approval against the delta variant? drew: we know right now that the first two doses of pfizer's vaccine are highly effective against all forms of covid, especially when it comes to severe disease. that continues to be shown in most of the data we have seen. i believe the expectations will be true with moderna's shot as well. pfizer says they plan to seek emergency use authorization for an additional dose, a booster dose not necessarily against the

delta variant. not specifically tailored but as always of boosting some of that immunity as you see it from the vaccine begin to wane over time. shery: is this going to take production capacity away from the actual first and second doses that the rest of the world still lacks? drew: i think that is a good question. my guess is that a booster dose will probably be, you know, something that rolls out relatively slowly over time and, you know, in the united states, we are talking about a country that really only has a surplus of a vaccine available to it already. and you know, at the same time, pfizer continues to try and ramp up production of these vaccine and increase capacity to several billion doses a year, i believe, so yes, i think that is a theoretical concern.

from a practical matter, it may the less so. shery: given all of this, what is the outlook for a country like japan that has a very slow vaccination rollout and at the same time, they are just getting ready to read thousands of foreigners as the tokyo olympics kickoff? drew: you know, i think the tokyo olympics are a great and important moment for everyone to watch. obviously, you know, limiting spectators -- a spectators from the games, disciplining for people who were local to japan. anytime you have lots of people moving around who are unvaccinated, when there are more, you know, cases happening, more viruses circulating, that helps exacerbate spread of a virus. while there are stringent protocols in place for the athletes going on, i think we are seeing countries attempt to pursue the travel lockdown

strategies and travel limitations as a way of curbing spread them opening things up in a mass spectator event or mass travel event. they would be potentially problematic. shery: drew armstrong, talking about foreigners raising -- visiting japan. they could be visiting tokyo according to choisun ilbo in south korea. joining us now is our chief asia economics correspondent, enda curran. given the renewed restrictions, are we expecting more government and economic support? enda: there is no doubt that at the very least, this is both a blow for japan and it raises expectations for more government spending.

remember that the economy was already at risk of recession in the second quarter. this state of emergency in tokyo will hit consumer spending hard and probably take 0.2% off of gdp, and of course, that will hollow out the recovery throughout the third quarter, heading into the second half of the year. the consequence of this is a shallow recovery for japan. the government may need to step up with around $30 trillion in spending, but it is still another dose of spending. must not forget, the vaccination rates in japan continue to be slow, so all told, you have to say the world's number three economy remains vulnerable to another slowdown. haidi: we are looking out for cpi data from china. just to remind viewers of what it comes for the spread between the producer and consumer price indices. are we starting to see peak producer inflation now? enda: this has been the big

talking point of the year. producer prices were at a 13 year high in china and coming into this data, we are looking at two dynamics again, some pressure off the commodities side of things. we know that the government of china have been pushing hard to take rusher off the margins where they can. there will also be a base effect at play because you are comparing to high levels a year ago. the ppi story might be coming off and that's good news for those manufacturers who have been suffering from very high input prices. we have been speaking to companies throughout this year who have been screaming about the supply side shortages they face, the cost of shipping, the cost of commodities, and everything that goes with that, or sing pressure onto their own margins. it is an indication as to why the pboc may have to -- remember what the state council said. they identified a small and medium-sized business because of the oppression on the ppi side. today's numbers may suggest that

some of the views -- global inflation breakout is certainly transitory. haidi: i'm curious as to what you make of this potentially dovish term by the pboc because rrr is not a tool that we have seen come out of the toolbox for quite some time. what is this -- what does this tell us about their concerns for growth going forward? enda: it is not a broad-based easing, haidi. it is not a signal from china that they are opening up this bigot again. we know that. we have to say it is a signal that they are worried about certain parts of the economy. it seems to be small and medium-sized businesses getting a hit from the commodities side of things given the prices they are paying. it shows that there are parts of the economy that need support. china's economy is cooling now. it had a very robust recovery.

things are starting to slow or plateau. on the consumer side of things, it is not back to where was pre-virus so it is something of a shock to people to see the signal coming from the fed council. it does not signal a state of emergency or anything like that but it shows that there are vulnerabilities in china's economy and underscores how long the road to recovery will be forever economy around the world, dealing with this pandemic. shery: enda curran with the latest and of course, we get more analysis on china's in nation data. the china economist will be joining us later today. the ecb in the meantime outlining their strategic -- that sets the framework for the next half decade of post-pandemic monetary discussion. we have the details encz angels -- and the changes, ahead. this is bloomberg. ♪

haidi: global taxation is top of the agenda as finance ministers and central bankers gather in venice for the g20 meeting. the oecd secretary-general says the minimum tax proposal is very fair. >> as a result of the globalization and digitalization of our economies, it has created significant inequities in how governments were able to raise p6q.át$p'd the deal was grer 130 one countries around the world through the oecd g20 process. it is a fair deal. haidi: is the 15% tax rate really revolutionary? dani burger explains. >> with pandemic stimulus plans in the trillions and trillions of dollars, governments have a new mantra for how they might pay for it all.

>> for too long, there has been a global race to the bottom and corporate taxes. >> a minimum rate of 15%. it's an interesting and solid basis. dani: last month, g7 countries agreed to a global minimum corporate tax of 15%, what they called a landmark agreement. and then last week, the oecd managed to get 130 countries and jurisdictions on board. the current goal for implementation could estimate 2023 area the oecd's current plan would bring in an extra $150 billion a year. >> the absence of a solution. gross taxation would harm innovation. dani: technically, this would not be such an historic crackdown. the level would be higher than islands 12.5%, but lower than all g7 and most other e.u. nations except hungary.

ireland and hungary have not yet joined the plan. ireland is likely to remain the go to for big tech in europe. for some, it is just not ambitious enough. >> that is still a big drop ahead of us, dropping to the minimum instead of dropping to the bottom. we need a minimum corporate tax rate that is close to the level where we are now on average. that would mean we have to be at around 25%. dani: those most at risk might be the zero tax territories, countries like the uae, which is not part of the g20, might choose to be exempt. however, offshore tax havens including a network of dish overseas territories like you to, the british virgin islands, cayman islands, but also new jersey or the isle of man, are under pressure as britain just hosted the g7 meeting. for the approximated $70 billion going through those islands, it might be the end of the game if

global powers find a way to not only agree on but implement a 15% global tax. shery: that was dani burger. given all of the issues that remain, what are we expecting from the g20 this week? >> we have seen the oecd has gotten 130 countries and jurisdictions support a global minimum corporate tax rate plan. there are still some significant hurdles that need to be overcome as they all meet this week. congress is one of the big hurdles so a lot of europeans tell janet yellen how they would navigate that problem with congress, dealing with some of the larger multinational firms like facebook and google, how to implement the overhauls in 2023. haidi: the implementation is

key. how difficult is the ratification going to be for this? >> it's going to take some time. they are planning to spend the next couple of days to start working on the technical points of the deal and the g20 leaders a summit in october, when president biden meets with counterparts. that is when they hope to sign a pact to fully begin implementation after that. haidi: let's get you a quick check of the latest business flash headlines. morgan stanley says the personal information of some customers with dormant stock accounts was stolen after one of its contractors was attacked. the data breach to exposed names, dates of birth, and social security numbers, but not passwords. they discovered they cyber intrusion in may.

they will not say how many have been affected. wells fargo is shutting down all existing personal lines of credit and will no longer offer the product. it can better serve its customers through credit lines or credit cards and personal loans. all far goes board of personal lending -- $5 billion at the end of march. it has been exiting businesses deemed inessential for improving profitability. qatar consultancies earning missed estimates as india's second coronavirus wave hedged domestic business. net income rose to 90 billion rupees, around $1.2 billion in the quarter through june, falling shy of the estimate. sales missed estimates. they say that the indian market shrunk by 14% due to the second wave. we have lots more to calm on "daybreak asia -- come on "daybreak asia." this is bloomberg. ♪

su: hello. i am su keenan with the first word headlines. british travelers who are fully vaccinated against covid-19 will no longer need to quarantine when returning home from moderate risk countries. the transport secretary says, starting july 19, returning passengers will be told to take a coronavirus test two days after arrival instead. those under age 18 not currently vaccinated will also be exempted from quarantining upon return.

it is official. the tokyo olympics will ban domestic spectators at events in japan's capital. the decision from the olympic minister came after the prime minister declared a state of emergency for tokyo, running from july 12 through august 20 can. more than half of the 43 olympic and paralympic venues, including the opening ceremony, are located in the capital. >> considering the effect of the coronavirus variants and in order to curb the spread of the virus, we need to shrink antivirus measures. . su: to the latest on vaccines, pfizer says it will request u.s. emergency authorization in august for a third booster dose of its covid-19 vaccine. in the move comes after early data shows it can sharply increase immune protection against the virus.

the company has received initial data from an early human study, showing a third dose of the existing back in is dave and can raise antibody levels by fivefold the tenfold compared with the original vaccine. jack ma just got overtaken. the founder of the world's biggest electric vehicle battery maker has overtaken ma in the wealth rankings. his net worth jumped according to the bloomberg billionaires index, more than the cofounders 48 billion. the new entrant is the latest in a string of next-generation tycoons in china who are amassing fortunes in the clean energy boom. 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 su keenan. this is bloomberg.

shery: the european central bank has detailed its biggest strategic rethink since the creation of the euro with a review on thursday raising the inflation target and keeping the door open to a temporary overshoot but it also portrayed that leeway as a bestial situation. for more, let's bring in john authers, joining me here in new york. it seems the review granted concessions to everyone on the monetary spectrum so give us your take on what were the key takeaways. >> obviously hugely significant in a symbolic way because the ecb is the spiritual heir of the bundesbank. hyperinflation in weimar, germany. there is symbolic importance to this. practical importance is disappointingly low partly because it is not añ ecb has managed to come anywhere near to its target for a decade

anyway. and there is a lack of specifics which meant that the markets really have been pretty uninterested so the yields in of the eurozone today were actually up on a supposedly historically mega dovish announcement, which basically tells you that this is perceived as ultimately being more symbolic than practical. met on the guard has had to make a few too many concessions her to really make a big difference. >> does this give us any more clarity when it comes to crystal ball gazing as to what happens with the reflation trade? this comes at a time when we see consumer inflation at the highest we have seen in quite some time still. john: yes. it does not give us any more clarity. i am supposed to be able to offer people clarity and i don't think it really does.

in theory, this should have given the reflation trade quite a big shot in the arm. it is similar to what the fed announced that jackson hole last year, average inflation targeting, and the fact that it really has not, that you have seen continued sharp falls in bond yields here in the states with continuing flattening of the yield curve, all of the things that imply that people are less concerned about inflation and also less confident about a healthier reflation suggests that for the time being, people are really not convinced about that reflation trade and they are also still i think perhaps reasonably not that convinced that the ecb is going to do anything to help that reflation trade. haidi: we have breaking news at the moment. south korea is raising their

social distancing guidelines to the highest level. the highest level would be level four. no more than two people gathering allowed after 6:00 p.m. closure for clubs and facilities. no big scale events allowed. remember, we have seen a record number of virus cases across south korea topping 1000 for the first time since december of last year. reporting that south korea is raising social distancing rules in seoul to the highest level. returning to you, this of course just means more uncertainty for the global economy. is it no surprise that we are seeing chinese authorities signaling a more dovish shift? john: frankly, what you just brought in will feed into this notion that we have been too soon to start putting chips on ñreflation. even korea, which pound for pound has possibly had the single most successful response

to the pandemic of any country on the planet, if even they are feeling the need to tighten up and impede activity like that for 18 months, getting more than that since the pandemic first broke out, that is not going to do any good for sentiment. when it comes to china, yes, there is a lot of concern. it is often easy to forget how important china is during the hurly-burly of the excitement over central banks here and in europe, but it is where the world's gross comes from at the margins and particularly since the celebrations. it has great concern about what exactly the government is up to and it looks as though they are concerned about the corporate sector and about the strength of their economy given that they appear to be moving in a more dovish direction. haidi: not to mention

geopolitical concerns as well. john authers in new york, always great to have you with us. the ongoing support we have seen from global central banks has kept liquidity conditions ample, leading to the run-up in valuations and markets but again, these concerns around covid-19 cases including the delta variant in inflation and china's crackdown on tech giants , all weighing on sentiments. i joining us for an exclusive interview is the head of asia-pacific at the canada pension plan investment or. they manage $497 billion as of march, so really great to have you with@bloombergtv. what do you make of all the uncertainty and how does it affect the capital deployment decisions that you make in this part of the world? >> thank you for having me this morning. as a manager, we are a long-term investor so for me, look at our investment strategies. seven years and eight years directionally.

the strategy we have been focusing on for the last couple of years in three areas. first one is increasing our investment in emerging markets, large emerging markets and that is because the economy in that market is providing diversification opportunities for large global investors like us and relatively higher inefficiencies for outside opportunities. the second area we have been focusing on is seeing innovation. we have been focusing on consumer internets, whether it is e-commerce, telehealth, financial services technology, syntax, and all of those areas. the third area i want to jim is sustainability. we have firm beliefs that companies focusing on sustainability and esg are

value over the long term. we have been fgduár'g areas through renewable energy investments and transitions in shery: will you continue ongoing investment when it comes to chinese tech? what will you do with your stake in ant. suyi: we have been investing for the last decade plus with our long-term strategy that i mentioned. investor consumption has been our key focus. it is not only technology companies. with that new economy coming up, there are many ways that global investors like us can play. for example, the e-commerce is supported6 by modern facilities. we have been a long investor in industrial warehouse is in china for more than a decade. haidi: what about ant? will you continuing to invest -- will you continue to invest? suyi: simtech is another area we saw as part of the innovation

that will continue to grow globally including the china market as well. we invested into the company. i don't want to comment on the specific companies but our investment theme continues to hold. shery: broadly, how much exposure does the pension plan have for chinese private companies or china in general right now? suyi: we are quite unique in the sense that a very large proportion of our investments are in private illiquid investments. that is more than half of our total portfolio. our asia portfolio and china portfolio largely mirrors that as well. shery: are you factoring in the potential decoupling between the u.s. and china right now? how is that reflected in your portfolio? suyi: political risk has been one of the areas where we maintained a lot of attention and it is clearly part of our investment decision-making

process as well. a silver lining on that decoupling is having lower correlations, providing higher diversification benefits for a global investor. shery: we have broken the latest restrictions in south korea given the uncertainty over the virus outbreak. i know that you are a long-term investor, but is this something unique -- you need to consider for countries you thought had rained in the pandemic? suyi: that is a great point. how countries are getting out of this pandemic, how economies are reopening, how countries are doing, the virus has been one of the areas we are focusing on. you see divergence amongst the countries around the world, how they are looking at opening up their economies, and how they are rolling out their vaccine. they are opening the borders and

we think that they will -- that will have immediate impact to consumption as well as longer-term impact as well as. that is the key area we are focusing on as well. shery:ctqhc÷42é#hk suyi: the? mitigation for us is diversification. we are investing in 50 plus countries around the world, investing# zk[q"ñ9

exposures as well. we have gone through for the last 10 years two crises. the global financial crisis and the pandemic that we are still going through and we have seen our portfolio holding up really well so that has been working out well for us. shery: suyi kim at the investment board is staying with us. in the meantime, we continue to see headlines drop out of south korea. ì(lc% briefing, saying that they will be imposing those level four rules in seoul for two weeks from july 12. that will be the highest level when it comes to social distancing rules. let's turn to sophie kamaruddin for the markets because on the docket, a 50 year sail from south korea. amid this rally in paris and bonds, given the virus outbreak. sophie: we have seen companies loading up on debt although the pace of that record debt binge has been slowing since hitting a high in june and that is seeing the korean corporate bond yields surging 19 basis points through the month of june. qi■it expects issuance will cloe substantially in the second half given the boost to cash buffers to prepare for the virus impact and policy normalization is in place. there is a chance of the first bok rate hike in august. little chance for a july move given the spike in covert cases in south korea, which flipping

the board, has prompted credit agricole to drop their recommendation. they like the trade but they wait for better entry opportunities and do not see the outbreak stalling the domestic demand picture. we have the ratings agency upgrading the forecast for south korea to 4% from 3.6%, but next year, they see the pace of expansion slowing to 2.8% on a slow recovery in private consumption. haidi: plenty more to come on "daybreak asia." this is bloomberg. ♪

shery: let's continue our conversation with suyi kim. she climbed the ranks of carlisle and is the head of asia-pacific at the canada investment board which has a big focus on female representation as well. thank you so much for hanging around. you have been very vocal when it comes to representation in the boards across asia. what are you seeing when it comes to diversity efforts right now? suyi: diversity efforts have come a long way. i have seen improvement.

a lot of variance happening in the markets. the pandemic has thrown cold water on that movement. we are seeing the covid-19 crisis has affected all of us, but more for the working woman. people are talking about one in four women are thinking about leaving the workforce permanently. we need to have urgent need for leaders to help accelerate participation of women at all levels. shery: what is the big plan when it comes to diversity in asia and other esg efforts? suyi: as a shareholder, we hold a lot of private companies within a very active shareholder -- exercising our voting rights. back in 2017, we had implemented

gender diversity practice. we started that in canada. that year, we voted down 45 companies listed in canada that did not have any female board of directors. next year, 21 companies, half of those companies, brought in female board members. in 2019, they expanded the voting practice globally including the asia-pacific. in 2020, voted against 323 companies where they did not have any female board of directors, and then out of those companies, more than 90% are based in asia so that really shows that we have made some progress but there is a long way to go in this region when it comes to women on boards. haidi: it was that last statistic that really jumped out at me. 90% of those 300 plus companies were here in asia. what is it about the region

where we are seeing less progress? what more aggressive action can be taken? to their need to be penalties? suyi: we are doing -- do there need to be penalties? suyi: companies are exercising voting rights and having these voting practices. i would encourage other investors to be the same. at the same time, i'm very pleased and optimistic about the future in the sense that i am seeing a lot of government bodies and regulators in asian countries coming up with policies that are goingil to nue countries to move towards that way. definitely in south korea. listed companies will need to have one different gender on their board as well. i recently -- hong kong exchange proposed the rules requiring companies to have at least one female board of directors so these are very encouraging signs

and optimistic about the future. shery: so great to have you with us. that was an exclusive conversation with suyi kim, at the canada pension plan investment board. we do have lots more to come on "daybreak asia." this is bloomberg. ♪

>> i think there always paradigm

shifts going on. it's really a very important market that we need to really tap into, especially in the greater bay area. we have been investing in millennial companies that focus on packaged products. we are invested in home gyms and also, lately, we are invested in one of the biggest companies in mobile cases and mobile accessories and their penetration to millennials is very substantial. haidi: that was adrian chang and you can catch more of that exclusive interview in generation x, where he will be discussing the companies focus on health care services and learning to take risks. that is on monday at 7:40 a.m. on "daybreak asia." bloomberg sources say private equity firms pag and a capital

company are among the investors considering joining the pre-ipo funding round. it includes $3 billion for a group. indian food delivery startup -- boosted its ipo target by 14% to $1.3 billion as domestic demand rises. the food app, which is backed by ant group, will sell new shares at 76 rupees each. the fast-growing food services market could be worth $97 billion by 2025. japanese insurer tokyo marine says it's on the hunt for m&a deals and wants to diversify its global footprint as it moves on in the greenville capital scandal. it is adding that australia looks attractive. shery: we are counting down to the start of trade in tokyo and

seoul. over in japan, softbank is leading a new funding round in clear finance. investment will be worth more than 200 million dollars. clear finance plans to expand into asia by year-end. fujifilm saying that it is going to pivot to health care and it is paying off. the ceo spoke to us about diversifying from film and digital cameras, plus there are reports that bridgestone will suspend operations in myanmar at the end of july. over in south korea, president moon is falling short of his minimum-wage goal. labor unions want a 20% hike to pay while businesses want a freeze. a record debt binge may be nearing an end in south korea. sales of denominated corporate notes are down 33% on the month. cap how bank is beginning its ipo book building. the process will continue until

july 21. let's turn to sophie for what to watch in the markets. sophie: we are looking to south korea raising social distancing levels to the highest for the city of seoul for the next two weeks so keeping an eye on tr, specifically on collaboration, keeping an eye on battery makers as well as they plan to invest 35 billion dollars in the ev battery industry by the end of the decade with investments to be led by them. and just to follow-up on what share he mentioned around the bridgestone story. this comes as myanmar faces a major virus outbreak. it has come to a near halt because of the lack of supplies. vaccine supplies have not come to myanmar since may. haidi: coming up, we will take a look at what they are expecting out of china's inflation numbers. the greater china economist will be joining us with her views. plus more markets insight with bnp paribas's asset management

head of asian equities. he is with us to talk about this slandering reflation trade and where opportunities lie. our market opens in sydney, seoul, and)hrób90viñbóq■ ♪

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shery: welcome to daybreak asia, i am shery ahn in new york. erik: i'm sophie -- sophie: i'm sophie and hong kong. haidi: the top look at the stories because asia, on the worst truck since may is a surge of virus could hamper global economic recovery. investors are focused on price

data from china, it in over an hour we are getting signs as to whether inflationary pressures lowered in june. no spectators at the olympics tokyo, south korea has raised its virus curve. we make an assessment of the covid spike across asia. let's look at the lucky reflation trade around asia. not so happy friday, trading happening. sophie: looking forward to the weekend as we see drops more than 1% for the nikkei and value heavy topics. we have seen stocks in japan getting weighed by the clamp down on the tech industry in china, backers of didi and softbank have been drugged lower. the yen has a bid -- drugged lower. the yen has a bid but soft. we are seeing a benchmark yield pushing closer to that 0% level. let's check on the open in south korea. the government raised its social distancing measures for seoulto

the highest level, level four. extending losses for the third straight day, a two week decline and back above 1147 against the dollar, trading in october. stopping it short dollar won trade regulation. we are keeping an eye on ripping stocks, things at retail, travel and outdoor names in seoul. korea bond futures are taking lower. we have seen a rally in korean bonds on this outbreak. in australia, stalling after a two day gain. bond markets and focus. the 10 year yield is seeing some relief, ticking higher after a two day klein, giving the essay 10 year decline.

the offshore yen testing that 650 handle, we could see that and it could be on the 200 day moving average, watching chinese bond markets closely with 10 year yields all and below 3% since does for the first time since october. that's august. shery: our next guest says inflation and regulatory risks are his client's top concerns, let's bring in zhikai chen. this chart on bloomberg showing how those tech stocks in emerging markets have steadily grown in the past years. let's start with those regulatory concerns. much potential for further downside given that china continued to crackdown? zhikai: i think the chances are small at the time.

the last two weeks have shown us a successful ipo listing will prevent chinese revelation storm coming from these companies. the uncertainty is going to weigh on them. however, valuations on the overall sector has corrected. would you have shown in the gap between u.s. tech and chinese technology. shery: let's pepper in virus concerns across asia. how do you hedge all of the concerns, given that as you mentioned, inflation has been a concern but we have these virus cases rising. zhikai: the situation is complex. there is obviously economies that have done better, china and singapore on the way out of this issue with virus concerns,

giving them massive amounts of expectations. and the rest of asia, particular other countries, have seen a soft surge in infection cases for indonesia, malaysia, thailand and in korea today where they re-introduced tightening measures. this has created some uncertainties with regards to some of the reopening that we have been seeing over the last few months. it counterbalances inflation obviously, because inflation trend has also been a favorite trade in the region and has not looked as well in the last few weeks. haidi: very pertinent question of the day from our live blog, how much of a risk is -- do we see when it comes to assets dropping due to these research -- research at virus concerns? now we are seeing stocks and sentiment falling as infections

rise. that's the opposite of what we have seen over the past year. how would you explain that? zhikai: i will try. i think what is happening in asian economies is that for most of the pandemic, asian economies control the situation quite well within their own borders through social distancing and border closures. the number of cases in asia compared to the rest of the world has been better throughout the pandemic. even now. but in some of these asian economies, it seems that with loosening measures, they have emergence in their economies. particularly in the first quarter of this year. it seems a long time away, but in february asian stocks did very well, better than their

local peers. but as the resurgent cases came up, they had to retrace some of those gains. haidi: under what circumstances would you consider some of the chinese tech names that are under regulatory headwind from buying offices? did fort -- didi for example, the base case of market dominance, the business case remains unchanged. do you invest in hong kong shanghai listed stocks? zhikai: good question. i think for a lot of chinese companies, you have the option of investing in them in hong kong. but the majority of technology names are still pretty much only available in either hong kong or the u.s. at this point in time. it is a tough question. there is a significant issue being raised by regulators with regards to the privacy

protection as well as the data usage at this point in time. i think what is concerning is when didi management was advised by regulators, not to buy the listing, did it. that greeted tension with regulators. -- created tension with regulators. haidi: the big question over the judgment call made there. zhikai chen, head of asian equities at an asset management company. >> we start with president biden who is saying the u.s. is on track to end -- by august 31 even as the teledyne makes gains. biden will end america's longest war before the 20 anniversary.

the u.s. will continue to provide support, but it is not there to build in asian, adding that others -- a nation, adding others must step up. pres. biden: u.s. support for the people of afghanistan will indoor. we will provide civilian and -- endure, we will provide civilian support including speaking up for the rights of women and girls. su: potential closer for the only remaining border crossings through which humanitarian aid can enter syria, this would be catastrophic for civilians. the eu commissioner for crisis management me the comic out of a crucial vote at the u.n. security council to decide where to keep the crossing open. it's do to close saturday. we are told china's aviation officials are willing to conduct test flights on boeings lingered 737 max jet.

this is after the two-year grounding in the largest overseas market. boeing is prepared to send a delegation of regulators this month. max has been clear by more than 170 countries. jack ma just got overtaken. the founder of the world's biggest vehicle battle -- battery maker and counts tesla among partners has overtaken jack ma in wealth rankings. his net worth jumped to 40 billion -- $240 billion, more than alibaba. he is the next generation amassing fortunes in the clean energy boom. 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 su keenan. this is bloomberg. shery: ahead, we get a preview of china's gleason did out with

greater china -- inflation data with reader china. tightening social distancing rules in seoul. this is bluebird. -- this is bloomberg.loomberg.

haidi: south korea and japan are expanding virus restrictions as covey kisses rise. let's get the latest, joining us out of tokyo, i will start with you. where we sing the latest virus surge? >> south korea has been seeing a spike in virus cases in the last couple of days, especially originating from soul and -- seoul and neareby.

-- nearby. cases are about 1000 people per day. this is the first time we have seen such spikes since winter, january this year. that has pumped a government to take measures to raise social distancing levels to the highest level. that does not entail a complete shutdown of the economy. but it does entail a strict ban on private gathering of people more than three, three or more people. after 6:00 p.m., it will be banned people -- people will be banned from having meetings or private gatherings or events that entail gathering of more than three people. i'm sorry, three or more people. haidi: the virus restrictions are very concrete. tell us about the potential economic impact given that we are at the highest level, number four. >> the potential impact on the

economy could be more brave than the last time. -- ralph -- grave. a lot of virus cases are in seoul, and among the populations of people who are in their 20's or 30's who are yet to be vaccinated yet and have been the most active with social activity , a lot of cases have been found in retail stores and restaurants compared with last time, when we saw a lot of cases in the prison cells or nursing homes or hospitals. this time we are seeing a bigger impact on the economy. however, if the government succeeds in quarantine efforts earlier than expected as the imposed the higher level of social distancing, we could see this impact being temporary. we are seeing stocks today going

much lower, starting 1% lower at the open, a lot of retail stocks and reopening stocks moving around. haidi: sophie, turning to japan, there is a ban on spectators at the olympics. is this a total ban? we have seen cases where the cases have been low and they have allowed spectators, how does this affect the games question mark --? >> this was taken in response to the declaration of a state of emergency for tokyo. most events will be occurring in the city and the three neighboring prefectures. all of those events will be spectator free. we do have a marathon in hokkaido and a couple of events here and there, but the big draws are in tokyo and they will be free of spectators. we should note the state of

emergency won't change the experience that the athletes and other participants have. there were already measures in place to keep them as separate from the general possible -- population is possible and to test them regularly. their experience should be the same. the idea is to keep the people of tokyo off the streets and away from those venues where they could turn into a potential risk. shery: how does japan's vaccination rollout played into this? -- play into this? sophie: japan did have a slow start and it sped up rapidly in the last couple of weeks. japan has administered around 56 million doses of the vaccine, enough to cover about 21% of the population. the government never tied the timeline in with the olympics, so the strategy for the olympics has been to try to keep groups separate so that even if vaccination rollout has not gone far, they can strike a balance between keeping the games safe and making them enjoyable. shery: there in tokyo, and in

seoul. thank you both. this comes at a time when we are expecting pfizer to ask for emergency authorization used from the" third booster shot, at a time when many countries do not even have the first and second doses of the vaccine. at least the scene -- it seems the production continues and they have data showing the third shot could raise antibody levels as well. haidi: as we talk about these potential combinations, whether you can mix vaccines for greater efficacy, we are hearing are countries that use these, the chinese and astrazeneca shots eyeing boosters as well. there are concerns that these vaccines being deployed across the developing world are not capable of thwarting the delta v as much as -- delta variant as

much as pfizer and moderna. you talk about countries that have not even had their first shot, the australian government has negotiated with pfizer to get a delivery to come in ahead of schedule. the goal is to get every australian to be vaccinated with just their first shot by the end of this year. i expect he would have your booster before then. shery: it is a very slow vaccination rollout, not only australia but other parts of the world. it is good news to hear you guys are getting it faster than expected. in the u.s., we are missing that president biden target of 70% of people having their first shot, we are around 67% but fast for rest the world. next, an interview with the ceo howard ludwick who says stack -- spacs are a more attractive way to go public.

this is bloomberg. ♪

shery: fitzgerald ceo howard says stack -- spacs are a more attractive way to go public, about 5% of data company logic plans to go public after a merger. we spoke -- he spoke to bloomberg. howard: the spac market is an existential threat to private equity. private equity was the only way companies like this could raise money. now the public has a chance, many of these companies are earlier in their life cycle than a traditional ipo, but this is a way for investors to getting earlier and where the private equity guys got to percent, 20%

of the profit, -- get 2%, when you percent of the prophet now they invest and raise enough to get daily satellite images of every inch of the earth. think of that for esg, for insurance companies, it is amazing that people can invest in it now. with respect to fraud, this is another way of doing an ipo. when the ipo markets are fraught, spac will be. >> we want to get to the specifics, imagine how fast they are. deciding regulators have not been able to keep up? -- does that mean regulators have not been able to keep up? >> you have to go through a nine month process before you can go

public, where is with a spac, it is already public. you can put out your information directly to investors and investors can decide whether they like the company they want. you're bringing your company out. everyone can look at settle logic -- them and if they decide they don't want to invest they get there money back. spac investors get options, i think they're amazing so someone invested $25 million in the company. if we think this company is doing incredible things and changed the course of data, i hate to say it, but space is the final frontier and i think this is incredibly exciting. the space market is back. the data coming out of space is amazing. >> you talked about this being a

huge advantage when it comes to esg for farmers, insurance companies. do you think governments are going to be comfortable with a private sector company taking this level of detail over their country? what do you think the security pushback could be? >> the united states, the history of satellites is basically someone would build a satellite for $800 million in the united states would buy it. the military or government would buy all of it. now, they can to get to another level. before them, it took more money to get to space, now it costs less than $1 million to get it in space, they launched one on june 30. cool to watch, spacex did it, it was amazing. and they have 300 square thousand -- 300,000 square

meters of data. they are now getting it by satellite images. it's a great market. all of these governments watching their own borders, because right now they can afford it. -- can't afford it. it wasn't available. it is going to happen, there are people taking pictures of my house all the time. nothing i can do about it. can't even stop a drone from flying over. haidi: that was howard lutwick talking with guy johnson and taylor riggs. let's get the special headlines, many stock accounts were stolen after one of their stockholders were hacked. they exchanged names, date of birth's and security numbers but not passwords. morgan stanley would not say how many customers were affected.

wells fargo is shutting down all existing personal lines of credit and will no longer offer the product. they can better serve the customer through credit cards and personal loans. wells fargo ended $5 billion at march, this is the goal of simple fine operations and improving profitability. consultants are earning estimates of india's second covid wave and how it affected business. around $1.2 billion in the quarter through june. that is shy of the estimate. sales also missed estimate, it fell by 14% due to the second wave. daybreak: asia, we find out if china's inflation has pace in an hour. what we expect with the ppi numbers, iris will join us, we discuss

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>> this is "daybreak asia." south korea reportedly tightening virus curbs for two weeks starting july 12. the economy will raise social distancing messages -- measures i should say in soul to its highest levels. the move stems from growing concerns vaccines deployed across much of the developing world are not capable of halting the spread of the delta variant.

that has prompted some countries to look at offering third vaccine doses. and the tokyo olympics will ban domestic spectators at events in japan's capital. the decision came after prime minister suga declared a state of emergency for tokyo from july 12 through august 22. more than half of the 43 olympic and paralympic venues including the opening ceremony are located in the capital. >> considering the effects of the coronavirus variant and to curb the spread of the virus, we need to strengthen our antivirus measures. i will issue a state of emergency in tokyo. >> to myanmar, where a covid inoculation drive has ground to a halt in a vaccine shortage forcing the military government that seized power to hunt for

new supplies to stem a spike in cases and death. the country has received no supply since may. officials say the administration is in talks with russia and china to urgently secure more shots. sticking with the vaccine issue, pfizer says it will request u.s. emergency authorization in august for a third booster dose of its covid-19 vaccine. the move comes after early data shows it can sharply increase immune protection against the virus. the company has received initial data for an early study showing a third dose of the existing vaccine is safe and can raise antibody levels five to 10 fold compared with the original vaccine. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. >> we are getting the latest coronavirus case numbers at 1316 more in the past 24 hours. this at a time when authorities have raised the level of social distancing rules to the highest level, number four. no more than two people are gathering allowed after 6:00 p.m. along with other rules. this will be two weeks from july 12 and now we are getting the latest confirmation on the coronavirus case numbers. it's another record for a third day straight. >> this as regional authorities increasingly concerned about the impact of the delta variant to the economies. we are seeing dovishness from the pboc despite china having managed both of the pandemic

impact as well as the recovery really very well. the shift in tone we have heard suggesting the country's recovery may be weaker than it actually appears. the 10 year yield the lowest since august. it joins global action we are seeing when it comes to bonds overall. let's bring in a greater china economist at ing taking a look at the inflation data in the next hour or so. let's start with the pboc potential dovish tilt. does this suggest there are more concerns about the stability of this recovery? >> i am not seeing it this way. the potential targeted cuts actually aimed at -- there has been many requests already o

the past few months because of the high metal prices they face. it is more about metal prices. >> when you look at the inflation numbers we are expecting today, do you expect the spread between ppi and cpi to have come closer? you think we are close to peak factory inflation? >> i expect cpi to be 1.2% year on year from 1.3% year on year last month. maybe due to lower prices. let me say this is temporary because oil prices have come up. for pbi -- ppi, i expect

a stronger won at 11.2% after 9% year on year last h. we see some increase in metal prices. i would say it is very hard to pass the producer cost to consumers nowadays. first it is because of -- it is not all china consumers. the other thing is wage growth is not as fast as before. >> what are the industries china may have an upper hand in as we continue to see this shortage of materials, shortage of chips around the world?

>> yeah, the shortage of chips is due to -- is still recent. the supply is already at full capacity for taiwan. they are moving some production off-site. that actually can stop the shortage a little bit, but only temporary. those sites will also be at full capacity very soon. we will have higher chip prices for longer. for example two years or three years, until the chip demand goes down. it is very unlikely for this world to have chip demand go down.

>> we continue to see the slowdown in china. uneven growth at least. what can we expect in the bond markets? we saw high yields falling to the lowest since august. >> i believe this is -- the lower yield story is only temporary for china. the targeted rrr will be very targeted. it may not be very effective to help families. even with -- they are not changing the credit policy. it does not mean banks will send more to smes. the chinese government needs to find other ways to help smes. for example some financing programs. the rrr cuts, this is targeted. it will be short-lived. it may not be used anyway.

i don't think it will be long-lasting effect on the 10 year yield. >> always great to have you with us. we continue to count down to the inflation numbers out of beijing in just the next hour. we will be getting immediate reaction to much of that data as well. we have some breaking news crossing the bloomberg when it comes to pfizer earlier saying is going to apply in the next month or so for emergency authorization for its third shot to be used as a booster shot for the covid vaccine. we are hearing from the fda they are involved in a vigorous process to see if the booster shots are needed. the cdc and fda are saying fully vaccinated people don't need a booster. pfizer in saying it will apply

for that emergency authorization saying the dip in efficacy has been in people who were vaccinated back in january or february. saying the immune response needs that booster. we are not hearing the same information from the cdc and fda. >> given the uncertainty when it comes to those virus numbers, it is not surprising we continue to see these moves signals coming from china where there are growth concerns with the uneven recovery we are seeing. that is affecting the commodity space. we have seen the bloomberg metals index fall to a two-week low. copper has seem upside -- has seen upside. analysts saying this could pressure copper prices more than those state sales we saw just recently earlier this year. gold futures have rallied given the uncertainty in the past six sessions. we have seen retreat, getting really caught up with it right

now holding steady. corn, we have seen an extended retreat. we could see better global supplies. this is good news. we have seen soaring food prices around the world. finally we have the price index for the first time in a year seeing a little bit of a dip down to an to have percent. of course this is so important given the food prices have really added to the pandemic, really soaring since 2020 when the pandemic started last year. >> when you talk about the factors, the gap right on top of the difficult issue we have had, the first four months of the year, the rise in agricultural prices, if food prices continue, we can start seeing political problems and instability coming through.

we had protests and rights through the middle east. -- riots through the middle east. that chart suggesting we have reached a peak? >> that could really help. we don't want more geopolitical tensions around the world that could add to the angst in the markets. asian stocks really under pressure. what are you seeing? >> we are seeing the msci asia-pacific index to a two month low. the worst week since mid may for asian stocks. pulling up the word. in tokyo, losses extending for a third straight session. pushing below 1800, looking to close below for the first time. losses of more than 1% for the nikkei and the topix. over in seoul, virus curbs being

tension -- tightened. we have below 3200. the lowest level since october. flipping the board, checking on bond futures, 10 year bond futures. this marks the be ok -- bok potential stance. the korean 10 year yield below 2% on thursday. we have seen the rally on bonds as well. supply coming online to support the economy in japan. the 10 year yield hovering around the 131 level this morning. several big money managers are not giving up on replacements. they see yields higher for treasuries. over at ing, the yields moving

lower in china, that is seen as temporary. >> coming up next, an interesting take on china's crackdown and the battle for big data. ♪

>> beijing's crackdown on didi and other company listing shares abroad showing how data is turning into the battleground between china and the u.s.. a beijing-based company has halted plans for a u.s. listing. joining us now is bruce einhorn. i cannot say i am surprised they would scrap a u.s. listing given the environment right now. >> this was a company that was founded in 2014 and provides cancer focus self-care -- cancer focused health care services is on artificial intelligence. it is back from big-name partners including alibaba. they were hoping to raise about $210 million in their listing in the u.s..

people familiar saying it is market volatility, but obviously there is a lot going on right now that makes listing in the u.s. for a chinese company very complicated. >> at a time we have seen chinese companies raise $13 billion this year alone. what would it mean if chinese companies all of a sudden started to pull back? >> they were raised a lot already this year. didi, about $4 billion. now there's a lot of uncertainty. they are getting pressure from both sides. regulators in beijing are talking about a crackdown on a loophole that allowed companies that were actually officially incorporated outside of china to list in the u.s., so that is something a lot of listings in the u.s. of chinese companies currently have used. that might go away.

at the same time, there is some pressure in the u.s. because regulators there are talking about delisting companies that don't open their books. there is a three year window before that happens. there are still a couple years to go before they get that result. it does appear there is growing pressure on chinese companies from china and the u.s. that will make their continued listings in the u.s. more complicated. >> bruce einhorn with the latest on that tech crackdown. the battle for big data also the focus of bloomberg's big take this week. let's bring in: murphy in beijing. we are already seeing geopolitical tensions between china and the u.s.. what could be the implications

of this clash between superpowers? >> the point of our story today was to take a step back and look at the bigger issues underpinning this didi episode and try to connect that to china's domestic policy and then to expand into geopolitics. the issue with the domestic policy side is it has been said many times, but it is worth repeating. the issue of national security. when we talk about national security, we need to understand the perspective of the chinese side. it is broad and it covers things such as economic security, food security, raw materials, the financial sector, the military, and data. it is in this context these measures are being taken. with data being super key, china has identified that early and has taken steps to sort of take

a holistic approach to data, setting up regulatory frameworks , trying to define standards, to measure data, how to value it. this is basically for the geopolitical conflict, center stage. >> the holistic take, i like that. does that mean this has the potential to affect sectors, companies, businesses we have not started thinking about yet? >> definitely. in a way it sets up a new frontier rivalries. different parts of the world, the eu, china, the u.s. of course, developing their own stance or approach on data. from a chinese perspective, we spoke to many people this week, áñ companies, especially foreign companies, have no idea what are the implications or how to handle them. this only becomes clearer in the months ahead.

it will have potential to impact the broad range of industries. also countries. this is the issue we might see a scenario where countries might be forced to align. whether they align with the china model or the u.s. model. there is hope on the horizon. people are saying because this is such a critical area, for the global economy going forward, it is just not viable to have these separate systems, perhaps. that might actually push different countries to come together to collaborate. given the political environment right now, that seems a long way off. >> column a murphy in beijing. this is bloomberg. ♪

>> hong kong's economic recovery is well underway but not everybody is seeing the benefit. why are hong kong's working-class continuing to struggle in this recovery? hcj >> . we have seen the hong kong emergency -- economy emerge from recession. is a bit of a two speed recovery, very uneven.

we have seen a resilient financial services industry still in the city with real estate prices the highest in the world, still the most expensive property markets and the world. but tourists and retail accommodation, food services, those industries are week. it makes a lot of sense. the financial system can operate virtually. tourism and restaurants can't really. what we have seen as this has really hit the working-class and the city low income households. particularly difficult because that is really where much of the workforce comes from for those key industries. >> what are we seeing from the government to try to address this? and is it working? >> the government has instituted ke measures over the last two years. we address the pandemic and the protests before. we had a $10,000 hong kong cash handout last year. we are getting a $5,000 system

this year as well. economists are calling for more long-term measures. things like work retraining, helping people transition to the shifting economy. that is really where the issue is. hong kong's economy coming out of the recession, out of the pandemic, has lasting changes and we are not sure where that is going to go. the government needs to be more proactive in addressing those changes. >> asian equities on track for its worst week since may. let's bring in our bloomberg markets live david ingles. >> when you see prices drop, you get opportunities. look at the data, you decide what to do with that information. about a quarter of the index is

below. have a look at the stocks. 10 stocks. metrics across. the enterprises indexes and hong kong, that is very close to a bear market. a pie chart, essentially takes you in terms of market breadth. it is a little more pronounced. that is not adjusted as pronounced as price. valuations while they are in single digits, not quite all the way back. >> what does that mean? am i supposed to buy or not? you are telling me valuations have not adjusted. >> it depends. citi came out with a note saying look at macau stocks. by the dip. when you look at e.m.'s for example, down for eight straight days.

a lot of the stocks within this benchmark are the same constituents. we will get to the open in china, that is coming up next in about 30 minutes. you are watching bloomberg. ♪

>> 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open. >> just counting down. their top story today, yields equities and rate expectations are down as new covid-19 variants are raising some concerns over growth. >> the crackdown on dd shows that big data