haidi: welcome to daybreak asia. sophie: we are counting down to the asian market opening. kathleen: and good evening from bloomberg world headquarters in new york. our top stories this hour -- china taking those concrete step yet to crack down on flooring listings. ecb president christine lagarde

tells bloomberg there'll be guidance on monetary stimulus in 10 days, measures might be brought in next year. and the battle of the space alien heirs heats up as richard branson blasts off just days ahead of jeff bezos. haidi: let's look at how the asian markets are setting up in the start of trading this week. sophie: with a new trading week, i want to show you what's going on with momentum for asian stocks, pulling up the board, we could see some moves higher at the start of cash trade with futures seeing modular gains with concerns around covid cases in the region in places like pan and malaysia. we will get averages later today along with inflation data from india. the focus is brent and new york crude edging higher.

once you get on currencies this morning, on the dollar-yen trading close to 110, the kiwi dollar gaining ground. the euro very much the focus after christine lagarde spoke of a potential policy to take that could put the currency on the defensive. the pboc may be wary around u.n. trades after guidance they got on friday. kathleen: china has proposed new rules that would require all companies seeking to post in the country a cybersecurity review. it would significantly cut oversight on the internet giants. let's bring in jon luther in beijing. how do you interpret this latest move and what it means for the

near future and where it is heading? john: the latest move is any company with more than a million users will have to undergo a security review of its data. it's not that surprising that it is coming after beatty. there was some concerns from china voiced by state media that shareholders were looking out for an companies lifted in the u.s. and this comes after a slew of actions, so you see the world for china tech giants is under a lot more scrutiny. haidi: it looks like the end of an era for chinese billionaires and billionaires in the making. this is a warning shot, isn't it? john: i think what we can

definitely say is we are moving from a world where there was a fairly laissez-faire attitude toward how the internet was regulated to one where they are going to be placed under a lot more scrutiny. you had all of these huge tech giants sucking up data about consumers, about what people were doing with travel, with consumption day in and day out and that's just not going to fly anymore. beijing says we are going to scrutinize everything everybody doesn't make sure everyone is in line. haidi: thank you so much. let's get you to vonnie quinn with the first word headlines. vonnie: we will start with the bank of indonesia governor who says monetary policy could be tightened year, including interest rate moves. the central bank kept its interest rates at a record low

since february. a rate move could happen if policymakers see signs of inflation and ongoing recovery. >> the end of next year may be some interest-rate action but [indiscernible] vonnie: richard branson and virgin galactic have successfully completed a test flight to the edge of space. branson and company employees experienced weightlessness as the spaceship reached a peak altitude of 85 kilometers above earth. the journey kicks off a land month -- landmark month for space tourism with jeff bezos said to fly on a rocket made by his company, blue origin. >> for the children, we've got to get busy building as many spaceships as we can so one day, those kids will have the chance to have a similar experience as

what i had. and that we will do. sophie: italy has when the european soccer championship, defeating england in a penalty shootout after the score remained one all at the end of 30 minutes extra time. it's the first time italy has won the euro since 1968. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. kathleen: still ahead, we will hear from the ceo of one of the biggest property developers in hong kong. and, a look at some of the trends driving global markets with the etf our director of research. this is bloomberg. ♪

kathleen: ecb president, christine lagarde, says investors should prepare for new guidance on monetary stimulus in 10 days, signaling monetary measures might be brought in the year. she spoke exclusively to francine lacqua. >> we have a new framework that is unanimously approved by the governing council and we are going to let, as we always do, looking at the circumstances and looking at what ford guidance we need to revisit. we are going to look at the calibration of all the tools we are using. we are going to make sure it is aligned with our new strategy and given the persistence we need to demonstrate to deliver on our commitment, forward guidance will be part of it.

>> it was and always big meeting, but it's not a technical change, is it? >> it is going to be an important meeting because we are going to communicate differently. what analysts are going to see is a slightly different presentation of our monetary policy decision and i very much hope it will be clearer, simpler , crisper, to the point and as little jargon as possible. there will be a ford guidance review because we have to align with the strategy review we just completed. my sense is we will be determined by maintaining favorable financing conditions in our economies because we want to continue to support this recovery that is on the way.

there will be interesting variations and changes. >> when is the right time to talk about an exit strategy? >> not now. now is not the right time because we are still forcefully delivering under successful circumstances using exceptional tools, which is the pandemic emergency purchase program which i expect to last at least until march. possibly to transition into the new format after march. that is what we see at the moment but we need to be very flexible and not start creating the anticipation that it is the next few weeks. haidi: my next guest -- mixed

success in getting to herd immunity. great to have you with us. let me start with this chart which is emerging markets specifically. it takes a look at when it comes to asia versus the u.s. and europe. do we see value opportunities there? cameron: i think so but it may be a while before investors move into take advantage. there are two or three major headwinds at the moment. you mentioned one in your introductory remarks, which is we have seen a real move against the markets that have the most attractive sounding covid

containment stories in the early going and are seen as more vulnerable to subsequent variance -- variants. and then china's flexing of policy muscles is definitely causing investors to take a step back until we get a better sense of where this will lead. third, coming into the year, we were seeing strong appetites for emerging asian funds, but at that point, nobody expected both of the georgia senate seats to go to the democrats and hence, for the biden administration to have the ability to push through the stimulus package it did. this being a big shift back to the u.s., which really was not expected at the being of the year. haidi: you mentioned china being

a key risk, how much risk appetite is there to continue investing in china as investing in the loo chip names comes down? cameron: -- blue-chip names comes down. cameron: perhaps more importantly, trying to find allocations in the diversified global emerging markets funds which has been heading relentlessly up for a number of years. it definitely rolled over. it's not just investors who are much more cautious, it's the fund managers, too. kathleen: when you look at investment opportunities going into 2022, what are you basing that on? are you basing it on vaccination rates? are you looking at how weekly

other strategies are working or not working? central bank tightening or not tightening? cameron: your question has highlighted the dilemmas we face -- i can't really remember a time when there were more narratives being in pole position for a number of weeks before falling back. at the moment, the appetite we are seeing from investors moves very much toward the multi-asset space, the multi-asset fund groups, we see a lot of new money coming in and our quant team is seeing a big uptick in demand for multi-asset strategies which, frankly means people want to hedge their bets. they are not sure which way things are going to go and they want some ability to play both sides of the coin. kathleen: if you had to give

your number one industry or top couple of places to look for some bargains, what would they be? cameron: at the country level, perhaps really bad coven containment stories are now seen as having a degree of herd immunity and their rebound hasn't happened, so there's still a chance to catch it on the lower levels. in the sectors, i think utilities deserves more attention and money than it has been getting. i think it will be a big beneficiary of the green tailwind we are seeing throughout the fund universe and usually when utilities make major shifts, as they are from fossil fuel generation through alternative energy sources, that comes with a lot of policy support with direct back

stocking. i think utilities have a chance to offer some real value over the next 18 months. kathleen: how closely are you watching global bond markets, currencies starting with the dollar to impact these investment decisions? cameron: honestly, at the moment, the biggest issue, the negative one is that there's probably more skepticism than i have seen in the big central bank narratives. i see the fed's june meeting as a reflection that the fed started to understand this audience wasn't the transitory inflation narrative and they needed to acknowledge that. kathleen: we will see what jay

powell says this week. thank you very much. up next, richard branson's trip to space. we will discuss virgin galactic's test flight and what it means for the business of space tourism. this is bloomberg. ♪

>> for the children, we've got to get building as many spaceships as we can as fast as they can so that one day those kids will have a chance to have a similar experience to what i have. and that's what we will do. haidi: richard branson as he made history as one of the first non-astronauts to experience spaceflights. it's get more now with ed ludlow who is in new mexico. this was a key test for the

future of space tourism. ed: we kind of get hung up on it because richard branson was on board, but this is another test in a series of test the company had already planned. the may 22 test was such a big deal because as soon the vessel landed, they handed the data over to the faa and got the paperwork to send customers into space. they have two more planned and the data they generate on those is so valuable. but for all of us gathered there at spaceport america, there is this tension and anxiety knowing this billionaire and founder of the company is putting his life in his engineers hands, going up there and thankfully, this time, coming back down safely. kathleen: that's enough to encourage a lot of people to buy would've those tickets, about 250,000 dollars plus. when will those start up?

ed: they sold around 600 tickets and then in 2020, they opened up a reservation system where you could put down a $1000 deposit to get your place in the queue. they can't do that many lunches in the coming years. their ability to supply is just so much lower than what is existing. there isn't a sense they will open up new sales soon. the first commercial launch will be early 2022. haidi: what does this mean when it comes to the full commercialization -- when can you go into space, for example? ed: they are getting optimistic based on this quick fire succession, rapid test they are doing. but the economics are not quite there yet. they don't have the number of spaceships they need to have the scale to make the economics worthwhile.

>> over time, the goal of the company is to make it successful and drive prices down. in the beginning, the prices likely -- price is likely to go up. ed: he told me margins of 50%, that is software company territory. for a rocket company, we will see. kathleen: even if they get the price down way low, i don't know if i want to be waiting -- i can understand it can be very hard on your stomach. what was the highlight of the day for you? ed: when you are sitting there and the vessel on takeoff goes past you, it's a really strange experience because it is a roar, but it is a high-pitched roar because it's a very lightweight carbon composite spacecraft. it's not a big booster rocket. it is sleek and finessed. and then on the way down, as i was talking on tv with emily

chang and tim stenovec, there it was flying overhead. the moment the wheels touched the tarmac, that sense of risk and danger went away and you can actually feel all those virgin galactic employees loosen their shoulders a bit knowing their crewmembers were back safe. it is astonishing. kathleen: it doesn't mean it's not risky. thank you for sharing that with us from new mexico. now for a quick check of the latest business flash headlines. the world bank and imf are outdated, it was said and require a massive overhaul to bring sustainability to the developing world. he said the world bank and imf would be more useful as insurers to reduce risk for private investors. private equity firm lone star funds said to be looking at a

deal to acquire aoc. sources say an agreement to buy the composite resin business could be announced in the coming days. a surge in activity has contributive to a deal volume of 2.5 trillion dollars in the first half of the year. softbank's second business fund invested $13 billion, including investments in at least 50 companies. the report says the japanese firm was placing more modest bets on health care and software businesses with its second fund. haidi: it looks like asian markets are set to rally. perhaps celebrating the wind by italy this morning. stocks about .3% higher. we did hear tightening in the

coming year, potentially as soon as july, but market expectations by november there. sidney futures, a pop of about 1% following that rod based rally in the u.s. session on friday. we could see asian stocks charging backup given that we have seen a lag. u.s. and european equities continue to surge ahead. chicago nikkei futures looking muted there. the markets digesting some of the mood over the weekend. chinese ddp on the calendar this week as well as the g20 meeting with the finance chiefs talking about pushing through a global tax plan. s&p futures trading plea for flat at the moment -- trading ready flat at the moment. kathleen: some other stories are we -- as we count down to the trade in seoul, korea.

we will get an update on quarantine measures as the social distancing level in the greater seoul level -- seoul area is raised to its highest ever. the nikkei is reporting moon will be meeting with japanese prime minister on july 23. moving on to japan, the government is reportedly drawing up guidelines for a vaccine passport according to yomiuri. softbank at the open, amid a financial times report and its second vision fund piled about 13 billion dollars into at least 50 companies in the second quarter and will be getting core machine orders and pci data later this quarter. up next, the latest on virus restrictions in tokyo, seoul, and sydney. we will watch the markets as they continue to open and we will check in again on the 2020

euro. 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 ♪

vonnie: this is daybreak asia. i'm vonnie quinn. janet yellen has set a rough timeline for when the biden administration hopes congress can take up to keep portions of a global agreement that was in george by g20 finance ministers. yellen has given the signal that the plan would require two thirds vote in the senate, impossible without republican support. >> number one remains to be

negotiated. maybe it will be ready in the spring of 2022 and try to determine if that's what necessary for implementation. vonnie: china has proposed new laws that would require all companies seeking to list in foreign countries to undergo a cybersecurity review. it would tighten review of the country's internet giants. regulators saying such information risks might be exploited by foreign governments. the imf managing director says a carbon border tax would be a protectionist measure. she insisted -- she said that she has backed france's planned for carbon measures around the world. indonesia's finance minister said one global carbon pipe would be agreeable but it would

be difficult to make the agreement. new virus cases hit a record sunday -- five weeks into a nationwide lockdown. the prime minister enrolled -- embroiled in a battle, saying the economy is at a breaking point. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. kathleen: the newly installed 36-year-old leader of south korea's biggest opposition party says philip millennials will push back up against what he calls chinese poultry in places like hong kong. taking a tougher line against beijing of his group takes power. in an exclusive interview he says he feels a strong obligation toward the hong kong democracy movement. >> the hong kong government, backed by the chinese government

, as i expected -- it did not change much, but it was really important that i witnessed their cruelty to some extent. when i say cruelty, i know it is a strong word. i don't like to use the word because it was exactly what i learned in school when depicting the scene from the democratization movement. i had a chance to witness such a harsh protest. when i asked the people of hong kong, in your history, they did not have much of a protests history, so where did you guys learn this? what are you trying to model this on? most of them did not hesitate to answer from the democratization

process in korea. korea's protest in 1987. when i heard that from the people of hong kong, i was really surprised first and then i started feeling we have an obligation to their success and they believe at some point, hong kong can experience the same level of democracy as korea right now. we are going to have to strengthen ties and fight against the enemies of democracy. i feel a strong obligation. >> what do you make of the current governments china policy and how big a role will it play in the next residential race? >> i can definitely say that

government is leaning more toward china than before and the korean public is not happy about it. >> what do you make of other sensitive issues? >> mostly human rights issues are my concern. at the same time, if china was to participate in the global economy, they would have to abide by the rules of the world trade organization. they include many issues, sake copyright issues. the main concern is the human rights issue and issues related to tibet. >> what do you see as the policy priorities your party should take? >> we should ask north korea to

change and we should be -- we should provide them with support , humanitarian support, but at the same time, we should progress in a slow manner. witnessing changes and giving positive influence. the problem was they tried to do this whole business and whole big deal between the three entities -- donald trump, kim jong-un and president moon. but i think it's a little more than that. it should not be such a big business deal. we should have our philosophy

here. it's a different relation from before. that almost means you could see a harder negotiation with the north because we have nothing to lose now but they have everything to lose. haidi: south korea's people party -- people power party leader. we are joined now by our deputy tokyo reporter and reporter here in sydney. i will start off close to home. things are not getting better in sydney. in fact we are expecting numbers and restrictions to worsen. >> that's right. yesterday new south wales recorded a record 77 cases in this latest outbreak. new south wales premier said we are expecting worse case numbers today and throughout the week.

there is a possibility lockdown restrictions could tighten in sydney. they are looking for the vaccination to increase in the latest campaign but the issue may be the supply going on but unfortunately, sydney recorded its first death over the weekend and this latest outbreak after sydney is bracing today for those numbers to come out at 11 a.m. kathleen: just days until the tokyo olympics starts, what's the latest on cases there? >> as we kick off in tokyo, we are kicking off another state of emergency on virus cases and that has opted organizers of the olympics to say there will be no spectators at almost all of the events. a bit of science and politics at play here -- on the science side, cases have spiked here in tokyo and the head of the

advisory panel, a man we often call japan's dr. fauci has been clashing with the government for some time. he's said it's safe to hold the olympics with no spectators at all. the government needs to be aware that the public tested very lukewarm about the prospect of the olympics and for the prime minister, in a couple of months, he has not only a general election but has to run for reelection for the leadership of his own party. in that respect, the government has had to make a compromise and we have to show the world you can hold the olympics at the same time and reassure the people and keeping it as safe as we possibly can. haidi: over in south korea, we are seeing these restrictions go back to the levels because of the surgeon cases there?

-- surge in cases there. >> today is the start of the strictest social distancing measures since the first confirmed case a year and. this includes a ban on gathering of three or more people, they are closing down bars and restaurants, nighttime activity, they are banning spectators at sports events, so there is the possibility of many of these public events being canceled. this is mainly for the greater soul area where the largest numbers of cases have been posted. last week, case numbers doubled from a week earlier to about 1300 today. -- 1300 per day. the warning, may be the public is heating that warning. over the weekend, the numbers started to decline a little bit and are likely to decline today.

it was visibly empty in many places, public shopping mall, restaurants, two thirds empty, maybe one third the usual crowd. again, korea is trying to stem the rising further but the delta variant becoming what they say will likely become the dominant variant going forward. kathleen: thanks so much for a terrific regional roundup. coming up, we will hear from the ceo of one of the biggest property developers in hong kong. adrian chang is our guest on generation next. this is bloomberg. ♪

kathleen: numeral development is one of the top property developers in the most expensive market around the world. they are responsible for many of hong kong's landmarks, quite literally changing the face of the city on both sides of the harbor. adrian chang is part of the third-generation to run new world. he assumed the vision just over 12 months ago, shortly after the company marked its 50th anniversary.

he's led a push to art and culture in the group. in this season's final installment of and ration next, he spoke to david ingles about his long-term vision for new world and how he learned to take risks. >> i've been looking forward to the second half of this year. we will focus on health care services. we want to open 10 to 15 outlets in the raider bay area for the next one year from july to next year. ranging from one top -- one stop shop clinics, post natal, dental , endoscopy as well. these are things we are focusing on. the second half of this year,

offices are doing very well. we are close to 100%. we added another 40% and sky cities, we named it as 11 skies. offices, we are targeting 45% occupancy by the end of this year. that is all going well and we are very happy with that. david: it seems it is doing very well or even surpassing your expectations. when you see something like that that surpasses your expectations -- are you trying to fast-forward some of your planning? adrian: i think we are trying to be defensive at the same time we are trying to grab a lot of value opportunities. what we want to do is be defensive to some extent that we

want to find out new opportunities. we have health care services are going quite offensive on expanding our health care services outlets in the greater bay area. i think offense will be very defensive. i'm very optimistic, especially in hong kong and the greater bay area as well. retail wise, i expect the second half to be going well, owing to a low base but we are doing very well. we are still waiting for the border to open so we can capture more with the tourist market as well. david: i know you are playing -- you are paying special attention to the chinese consumer as well. any changes and shifts in consumption patterns? everyone talks about it but it is rapidly changing all the

time. adrian: there are always paradigm shifts going on in mainland china. if you look at millennials, around 566 million millennials in china are accounting for 80% of luxury sales in china. it is really a very important market that we need to tap into, especially in the greater bay area. we are investing on millennials companies that focuses on low alcohol content cocktails but practice -- but packaged products. and home gyms. we have invested in one of the biggest companies in mobile accessories and their penetration to millennials is very substantial. david: that takes us to the

other part of the conversation. what is your vision? you are head of the company. what is your vision for the group in the next 20 years? i want to be a unicorn is the guiding star -- i want to be a $10 billion company. your company's may be billion dollars in assets of u.s. dollars. adrian: i hope my legacy is not merely commercial success. i really hope we can be a company that is contributing to the well-being of the next generation. we want to contribute act to society and also building and ecosystem that has hardware and software. we have properties, we have rosewood hotels, retail, but also have software and services

like education and health care services. that becomes the ecosystem, not opposite units, but for our customers to navigate into this ecosystem and become part of it, improving daily lives and improving lifestyle. david: it's noticeable how many new businesses you are creating in the core business -- in terms of being able to ensure the strategy is consistent despite assets looking different, how do you ensure -- the other question is what advice did you get from your father and grandfather in terms of taking this business forward? adrian: new world development just past 50 years anniversary. we are already a 50-year-old

company. so we have been part of hong kong for so many years. my father and grandfather are amazing in laying such a great infrastructure and foundation for the next many decades. i'm here to create. we are obviously disrupting. always creating something good for society. in the 70's, we had the new centers created by my father and grandfather and then we had our public buses, public transportation for hong kong in the 90's. we built a lot of infrastructure in wuhan and mainland china in the 90's. for my father and grandfather, they always taught me to be humble and be grounded. i use the word grounded a lot. with the people, with the

customers, frontline obsessions is very important. you have to be obsessed with the frontline. you are one of the frontline to serve your customer better. that is something very important. my father taught me how to be daring, to be bold. to have an ambition to create. you can't just be creative, you need to have a mission and you have to be bold enough to move forward. david: was it ever and option not to be part of the family enterprise? i'm sure it has crossed your head, but i'm wondering if that was something that was explicitly said? how did that work? adrian: it's not an option, it's

not a charge, it's not just spontaneity. i'm very entrepreneurial and very creative as well and the family gives me such a great platform to experiment. david: not a lot of people have gone through what you went through and where you are right now. how did they teach you how to take risk and measure that risk? adrian: it's like a school lesson -- they pull you into the room, i think you learned from them. as you analyze and understand why they are taking that risk, what is successful and what is not successful, they are very open and transparent in telling you so you understand what risk is. that's something you need to learn from yourself. there's something you need to try coming need to fail as well

to learn i should keep taking that risk. having our culture, design creativity embedded into a commercial entity, that is a risk-taking thing. david: did you get pushback on that? adrian: i didn't get pushback from the company because they were supportive. i got pushback external because no one understands what you are talking about. why are you talking about art in 2008? why are you talking about culture? why are you talking about content? so you you need to also believe in yourself, have faith in yourself and try and error as well. i can't say it was perfect, so once you find the right way and understand what the customer

wants, it becomes much easier to navigate. kathleen: that was a new world development ceo. that was recorded before news came out that new world would demolish and rebuild parts of a new residential product due to quality issues. shares fell after concrete strength in towers one and eight did not meet design requirements. a security analysts estimated the total compensation and construction cost will come to more than $128 billion. haidi: we just got some robust numbers out of japan -- core machine orders blowing expectations out of the water. 7.8% when it comes to the month on month number against expectations of 2%. basically twice as good as expected.

the price inflation also beating expectations largely on higher commodity cost. we are also getting strong numbers when it comes to south korea's 10 day average exports. lots more to come, this is bloomberg. ♪

haidi: let's get a check on the markets. back up the strong finish from wall street on friday, up 1% when it comes to the start of trading in sydney. we just had some really good data out of japan and korea as well. 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.

>> hello and welcome to daybreak

asia. i am kathleen hays in new york. sophie: i am sophie kamaruddin in hong kong. haidi: i am haidi stroud-watts. our top stories this hour. asian stocks of oe higher. -- up higher. beijing taking its most concrete step yet to crack down on

foreign listings. the move tightens oversight over internet giants. we speak exquisitely to the finance minister -- exclusively to the finance minister. let's look at the market open. sophie: a strong start to the trading session this monday morning. the nikkei 225 and the topix bouncing. they were anticipating a turnaround after the vaccination rates improved and we saw some pretty good data from japan. we do have ppi slightly higher. we also want to highlight a side shares. they are moving higher. check out the yen, just holding

steady around the 110 spot. no changes expected. switching up the board, the dok is also up to that -- up to that this week. this follows a split decision in october and eventually november. we are still trading in october, low as we consider some data out this morning. switching of the board, the asx 200 gaining some ground while the aussie dollar is softening against the kiwi. they are going to begin tightening before the end of next year. the new guidance may be pending stimulus.

a close eye on the offshore u.n.. -- you on -- yuan. markets will be weighing the recent crackdown on tax which may be getting another chapter in china. >> messed for recap -- masterful recap of the markets. joining us is the head of aipac equity strategy. i want to get to those specifics but more broadly, there is still so much news driving the markets when it comes to the covid-19 vaccine rollout. fast or slow. the variants, how are the markets pricing this in? >> a very complex way.

covid affects markets in many ways. the profitability of companies but also bond yields. we should remember that. 12 months ago when covid really started to go around, they actually lifted these stockmarkets up. we need to figure out how that impacts bonds. this is kind of an ongoing process. >> when you look at these cuts you made in south korea and malaysia, how much did the virus news actor into this? how much did it have to do with your view of the companies and economies involved? howard: it has everything to do with the companies. i think there are two very

different things. that is not really because of korea but this other market. there is some other market that looks a little bit better. korea is very well owned. most mutual funds are. i don't see that much of buying like other markets such as taiwan. it is out of better markets like korea, that is how this came along. >> can chinese tech get cheap enough to entice you? harold: chinese tech, since last year, regulations came up. i think a lot of people focus on

the regulations issues and stuff like that. what we also see is these companies investing quite a lot and i think they will start to compete with each other. the profitability sector might come under pressure as well. there is probably more to go but we remain cautious on china. >> what about the impact of the delta variant and we are starting to see the differentials in growth that comes from a lack of a vaccine rollout across parts of asia. harold: the delta variant is making a difference in asia. indonesia is being affected. you mentioned malaysia. back to what i said in the earlier part, it will impact the growth of companies but some will be affected more than others. it will also affect bond yields and how governments will react to this. it is not easy to say covid is

there so the stock market should down. that may not be the case. we like a market such as indonesia because it will benefit from bond yields quite considerably. it will be affected negatively by the covid that will go around. >> the philippines has been hit hard by covid-19 and you have moved them to overweight so what is it that you like their -- like in their? -- like there? harold: people are not really well-positioned in those markets. does markets benefit from low bond yields. what we have seen globally is that we moved away from the reflation story. we have seen bond yields start to come down. we have seen banks and material hit reflation -- they are benefiting from the reflation sectors. the market is moving the

narrative. maybe reflation will not be as strong as what we anticipate. the markets will benefit from that. we like those markets but those covid issues are a risk as well. this is all about how much it impacts the banks and the individual companies there. maybe not as much as we sometimes believe. >> really great to have you with us, harold. let's get more on china's measures to boost to the economy. >> and think you have seen the reaction we have in the market, the yield on the 10 year.

people were surprised. i think the expectation is the government would tighten and the growth would continue to be strong and this action really begins to question that growth looking into the rest of 2021. it looks a little bit softer. it is not clear later this week. we will have medium-term lending. they could decide not to roil -- will that over. 400 billion out of that, it is a bit smaller than what it initially looks like. >> more on this because it is a bit more broad-based than people expected when it comes to the impact on the economy. is this a sign that the pboc is not worried about the increase it has seen in inflation?

that it is transitory? and that there is no reason to provide stimulus? >> consumer inflation has been pretty subdued as of late. that has not been the issue. the issue has been factory get prices. ppi is at a multi-year high. a lot of that has been contributed by rising commodity costs. the state council when they fly to the possibility of this cut, they specifically noted higher commodity prices and said this move would help businesses to help take on that additional burden. i think the pboc and the central government is looking for ways to help companies adjust to that new environment. >> all of this comes against the backdrop of this increasing crackdown on chinese internet companies. what is the latest that we now -- we know? >> try to put out these new

rules saying any company with more than a million users has to go through a cybersecurity check to see that it's data is properly protected before it can list overseas. that is after what happened with dd last week and the crackdown on that company and the review of its data. also, the ipo getting shelled, the fine against alibaba, the antitrust probe. i think it all speaks to the common thing which is regulation of the internet is getting much tighter. >> is this also a sign that china as an economy, as a place where business has thrived, that it is sufficiently strong, that the government does not worry about pulling in such an important driver of the economy potentially? john: it is a bit of a conundrum

for the government. i think with geopolitics the way they are between the u.s. and china and how important technology has become in that competition, i think a lasting aging once -- beijing -- the last thing that beijing wants is to compete with tech in the united states. kathleen: that was jon luther joining us from beijing -- jouhn liu joining us from beijing. kathleen:kathleen: next, we will hear from indonesia governor on the path to begin tightening monetary policy. this is bloomberg. ♪

>> this is daybreak asia. i am vonnie quinn. in an exquisite of interview with bloomberg television, the ecb president has told investors to prepare for new guidance on monetary stemless in 10 days. she also said it is not the time to talk about an exit strategy, signaling that new measures might be brought in next year to support the economy. this after the current emergency program ends. >> now is not the right have to talk about exit strategy because we are still forcefully delivering and using exceptional tools which is the pandemic emergency purchase program which i expect to last at least until march. possibly to transition into a new format after march. >> sydney reported a record

amount of new infections on sunday. that means lockdown is unlikely to be lifted next week. some economists suggested that the closure is causing $750 million per week. u.s. treasury secretary, janet yellen has set a rough timeline for when the biden administration hopes congress can take up to key portions of a global tax agreement that was endorsed by g20 finance ministers in venice. yellen did not signal whether she believes part of the plan will require a two thirds vote in the senate and a possible hurdle without a bubble can support. >> this remains to be -- maybe it will be ready in the spring of 2022 and we will try to determine what is necessary at that point for implementation.

>> billionaire, richard branson and version -- lactic has -- ranson and five employees experienced a few minutes of weightlessness as unity reached peak altitude of the five kilometers above earth. they will kick off with jeff bezos also set to fly on a rocket made by his company blue origin. >> we have just got to get building as many spaceships as we can as fast as we can so that one day, those kids will have the chance to have a similar experience to what i had. that we will do. >> global news, 24 hours a day on air and on bloomberg quicktake. i am vonnie quinn, this is bloomberg. >> the bank of indonesia could tighten on terry policy as

economic recovery remains on track. the central bank is currently reassessing the growth outlook. >> we are forecasting our economy growth will be 5.1%. we will be doing about 7% in the second quarter. 6.3% in the third quarter and then 5.5% in the fourth quarter. we are in the process of reassessing what the impact of the -- >> what are the downside risks to your 2021 forecast? >> economic growth and also, the

policy that needs to be done through the limits of the mobility of the economics. how the impact of human mobility and finance, i think that is what will happen. things are quite good. our export has been the driver of our economic recovery in the u.s. and china. >> the current situation is not letting up. it is getting worse. what scenarios are you preparing for. how will you safeguard indonesia's economic recovery? >> we are working very hard with

the economic minister. we are working on how we need to support the economic recovery by assessing sector by sector what more needs to be done from the fiscal stimulus arranging from the fiscal program in the fiscal bank. >> might you consider a rate cut given the tender cuts, the restrictions have hit the economy badly? >> our policy on the monetary this year, we are focusing on the impact. our interest is being low, maybe 3.5%.

we have to continue ensuring the liquidity in the financial sector and the economic upturn. we are focusing more on how to ensure effectiveness of the transmission of policies. >> rate cut is off the table? >> this year, we are assessing 3.5%, that is the lowest in history. >> the governor is talking about tapering. when do you think you might start thinking about tapering? we will be thinking about reducing some liquidity in the financial sector gradually.

and then later next year, maybe some interest. >> is there risk of capital flight from emerging markets like indonesia? how do you assess the risk from that? >> the bond yield, giving some room for adjustment. i think that's what we are doing. >> that was our exclusive with the indonesia bank governor. you can get around up of the stories you need to know as you get your day going in this edition of daybreak. this is also available on the mobile. you can customize those settings

so you just get the need on the injuries and aspects that matter to you. this is bloomberg.

♪ >> richard branson made history as one of the first non-astronauts to experience spaceflight after the successful test light of the unity space plane. ed ludlow spoke to branson after the trip and here is what he had to say about the experience. >> i have been practicing some words to say for some time. once i have done those words, just being able to unbuckle and take off and look at these massive windows, it is something

i have dreamt of since i was a kid. it was completely and utterly awesome. it was one of those dreams come true and i still think i am going to wake up any minute. >> you are here, you did touch back down. you said the feeling of witnesses -- weightlessness is undescribable but will you have an attempt for me? >> it is the most -- it was not just floating but also, looking at the other three beneath me. then looking out through these gigantic windows back at this stunningly beautiful earth, like pristine skies, the strength of

the blues and the blacks. we were in space. i have always pictured what it would be like like the right up there, the ride back. i never realized the experience would be so vivid. >> beyond the satisfaction of your own goal being achieved, what does this say for the company and those children who were present earlier? >> for the children, we have to get to building as many space stations as we can so that those kids can have a similar experience that i had. that we will do. we also launched this raffle today. $10 for a pair of tickets.

if they can win the raffle, they can go up but that money will hopefully enable many people to go up who have never dreamt of going to space. >> that was richard branson speaking to ed ludlow. ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network.

>> this is daybreak asia. i am vonnie quinn with first word headlines. china has imposed new laws that would require nearly all companies seeking to list in foreign countries to undergo a cybersecurity review. it is a move that would significantly tighten control over internet giants in the company. regulators saying such information risks being exploited by foreign governments. perry ward said monetary policy

could be tightened your, including interest rates. the central bank has kept it benchmark at record lows. the strategy is to gradually reduce liquid in the system but a rate move could happen to policy makers see signs of inflation and ongoing recovery. >> year, the end of next year, maybe some interested but -- >> the eu carbon water tax is going to be a protection measure. there will be a minimum floor plus for carbon emissions around the world, the indonesian finance minister says one single global carbon price would not be ideal but it would be difficult to reach a worldwide agreement. and italy won the european soccer championship. that is after the score remained

1-0. it is the first time italy has one since 1968 and it means england's men have gone 55 years without winning a major trophy. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. >> we are seeing asian stocks broadly on the rise. just picking up on some of that positive risk after a session of highs on wall street. we are seeing the kospi up by .9%. positive data for both of those markets. we have japan ppi eating expectations and sheen orders blowing consensus out of the water as well. the kospi also rising as we continue to see strength in those 10 days of south korean exports. here in australia and sydney -- australia, sydney is up as we

continue to assess the broader impact of a potential expended lockdown and we are expecting over 100 cases to be announced in today's press conference when it comes to the covid situation here as well. new zealand is up .3%. not much of a move. the chatter board they expect to see tightening or want to see tightening within this coming year. >> let's move on to malaysia. more than five weeks into a nationwide lockdown and yet new verse cases hit a fresh record this weekend. the reopening is further delayed. there was a record low. significant downside risk to the economy. mounting political instability clouds the outlook. sophie kamaruddin is joined by malaysia's finance minister. sophie? >> thank you. we are joined by the malaysian finance minister for an

exclusive chat. thank you for your your time this morning. you recently appointed this for the national recovery plan. that strategy has its speed mumps given the infection rate that has risen even as vaccination rates have picked up in malaysia. with the lockdown being extended , the economic plights of houses and businesses, that continues to be dire. last week we had the unterman or develop minister warning that they are at the brink of a collapse, how much of a setback does that pose to economic development? >> thank you again for having me here. if we look at what is happening in malaysia, just to put things in perspective, we had seen an increased number of cases not in just malaysia but neighboring countries. what is important to note is that more than 60% of number of

cases that are occurring here in malaysia -- we only have seven moving to phase two of the national recovery plan. we have seen a number -- vaccination rate going up. we look at the number of malaysians that have been decimated. we are optimistic they will touch 400,000 a day. >> with the number of middle income malaysians that have slipped into this category, does that present some headwind from malaysia's economic development? >> it will not. even though economic forecast is below what we thought, we have

seen the economies, the gdp look good. it is about focusing on assisting those affected. also, understanding the challenges faced by malaysia during. they are still in phase one. >> given those challenges, what adjustments are being made to the gdp outlook? you still anticipate positive growth but it is more realistic for annual expansion this year. >> the gdp forecast, we are in the midst of revising the gdp

forecast. we will be announcing this in august. that is when we will have the second-quarter gdp numbers out. we are spreading it to be around the range that you mentioned but we are finalizing the number. quite positive growth is dependent on the rebound getting traction in the second half. the blood dimension presents an unwelcome headwind at a time when certainty is divided -- is desired by citizens and investors. what is the likelihood of the reopening taking place in the last quarter this year if there is political instability given the parties that lost power in the 2018 election, it has threatened the coalition that came to power last year without a vote. >> let's focus on the national recovery plan. we are at the end of phase one.

we have a plan that will chart our way forward. we are quite optimistic, cautiously optimistic that the economy will be opening up soon. we see progress in other states. >> let's talk about those plans because the government code response has come under fire. germany raising interns over confusing sop's and their calling for a more targeted approach in the lockdown. we had the malaysian brigadier general criticizing coordination. i will these shortcomings be addressed by the nrp? >> look at the national recovery plan. it is a bold plan.

it will remain dynamic so that malaysia can respond quickly. the reopening, i have mentioned it many times in this interview, it will be done in phases. we are in this together. >> the prime minister has spoken of the government possibly limited fiscal space. what remains for further virus relief question mark to the opening the further delayed?

others are saying the fiscal gap could reach 7% this year. >> we obviously, the last thing we announced was that it was around 6%. but as we revised downward, our gdp forecast, respect -- expect it to go up and the recent stemless package -- we will be around 6.5 or 7%. that is where we will be. we still have physical space, we have showed it. we will injected physically into the economy with the packages we have announced. -- inject it fiscally into the

economy with the packages we announced. >> when pellet meets next month to discuss the covid strategy last year, could we expect arrays of gdp? >> today's stimulus is exempt but this will be the gdp number. we will be increasing from 65%. >> with that, in the second half, what are the spending priorities of the government. can you give us more detail on that how -- on how that may be funded? will there be more cost cuts, we look to tap that market? >> this is traditional revenue

from our government entities. traditionally, what we have done well so far is these expenditures. we still have enough liquidity and depth to ensure that we are able to fund or stimulus packages. >> the revenue side of the equation, that was dependent on the economic recovery. will that have to be lowered this year and if so by how much? >> it will have to be lowered, i suspect. this number, we will be showing it when we have more figures. >> will wait for this update but in the meantime, i would imagine you're making reparations for

the budget for next year, can you give us a sense of what kind of numbers we could be looking at? will it be bigger than this when he 21 budget question mark >> the focus of the government is to focus on safety so we can balance this while looking at thresholds. the government will continue to support the citizens and also the businesses. >> thank you for joining us this monday morning to discuss the malaysian frank kennedy -- economy and finance budget. >> next oh, rate cuts, what that means to the world's second largest economy. this is bloomberg. ♪

>> with a resurgence of covid-19 cases around the globe, central banks are not rushing to pull back on stimulus. the pboc making that supplies -- surprise cut. some are worried about the health of the economy. china is due to report second quarter gdp this thursday. market consensus is expecting growth of around 8%. joining us is the asia economist

at morgan stanley. let's look at the rrr cut we got over the weekend. that was already flagged by the state council last week. there have been concerned about the patching is of the recovery now. what does that tell you in terms of expectations? is this the start of broad-based easing from the pboc? >> etiquette is a shift from global policy. i think this fine-tuning on monetary policy as well as fiscal policy will likely be the name of the game and the second half of this year. the reason is the reason you alluded to earlier and your comment. there seems to be some growth that the china economy is facing. the demented economy really has not been as strong as policymakers were expecting. to see some normalization in terms of snap forms, autos and

the approach when it comes to covert containment and all this has mended some of the service sectors like tapering, the globe it momentum has been in contact with the pre-cover trend. that is why policymakers have shifted to what looks like an easing policy stance. >> short of this mean for the deleveraging drive going forward -- what does this mean for the deleveraging drive going forward? they are trying to do a structural reset like what we see across the tech sector. >> i think this is a fine-tuning on monetary policy and fiscal policy. we don't think this is the start of the major policy. we are looking at the recent second quarter pboc comments. there seems to be a balance between providing growth support

and financial stability risks. even with the injections, we're likely to see even with the cuts we saw last friday and also the fiscal using, they will ramp up into some local government bond issuance is. -- issuances. policymakers, if you look at the comments, they still want to keep that to the gdp stable. i don't think they will give up that part of see -- that part of the policy objective. >> let's look at the bank of korea decision later this week. what do you see them signaling? >> if you look at what the be a key has been -- be ok has been saying, -- the bok has been

saying, it looks like policy normalization could begin this year. i think this would still be the message in upcoming weekend meeting. that does not mean that rate cuts are going to be happening in this coming meeting or the next few meetings because two reasons. there has been a covid scare in there. if you look at what happened in the post policy, back then, the governor in a national simply speech commented that array kite -- a rate hike is not too far off. i think we would see something similar this time around in korea. also, in iran, up to the actual

rate hike, the crilly measures do tend to get -- liquidity measures do tend to get streamlined. we will keeping tabs on that to get a sense of when the rate hike will materialize. >> with the bank of japan meeting, i guess everyone is focused on the details of the relenting problem. many central banks around the world are looking at this but i guess that is just another indication that they don't really have anything they can announce when it comes to further stimulus measures, and it comes to anything that has to do with monetary policy more directly. -- when it comes to anything that has to do with monetary policy more directly. >> when push comes to shove, there could always be more strict policy measures that could be taken.

>> when it comes to the triple archive, do you see that as a bad omen for emerging asia and there recovery -- their recovery? >> what china is doing right now, fine-tuning on the monetary policy. i think that is a good thing to see. i think the fact that this could help mitigate some of the downside risks would bode well for the border asia region. the other thing i want to highlight is it is not only important what the pboc does but what the fed does and what the u.s. fiscal policy is. i think our review continues to be the fact that u.s. fed policy continues to main important for this part of the world.

that will provide the liquidity support for this part of the world. several asian economies depend on external funding. the extent to which global initiatives -- there is still very fiscal policy stimulus in the u.s.. we are spitting 2.2 5 trillion to be announced in october. that will drive a cycle in the u.s. and whenever the u.s. does more, asia is a big beneficiary. i think u.s. policy is the other thing we will have to watch. >> we were listening for jay powell's remarks about that policy. thank you so much, that is the asian economist at morgan stanley. 20 more to come on daybreak asia. -- plenty more to come on daybreak asia. this is bloomberg. ♪

>> time for a quick check of the latest business flash headlines. $13 billion invested in the second quarter according to the financial times. it was up from $2 billion in the first quarter. an unsolicited takeover bid for a pharmaceutical that values a drug retailer at $510 million.

the owner of the priceline pharmacy chain, api received 1.38 dollars in cash -- per share in cash. tsmc will spend up to $125 million, apple daily is reporting that the vaccine will arrive in september at the earliest. taiwan's government is facing massive pressure to obtain the vaccine. shifting gears, let's bring in our markets coanchor, david ingles for a preview of the trading day in asia. that euro game, i hate when they are decided on penalty kicks. david: i would be hard-pressed to make a direct comparison to the markets.

kicking off the trading session here, we put together some data. have a look at sterling. look at data all the way back to the 80's. your data is kinda mixed in with this. your futures are starting to trade right now. we are coming under tremendous pressure there on that contract. >> i wondering if some of these regulatory issues should be decided with a penalty shootout. what are we reacting to? is this the triple i, the floodgate? david: hopefully it is the latter. you're starting to get it already. look at copper prices this morning, a little higher than

thursday. there are a ton of things to watch. >> that is it for daybreak asia. markets coverage with dividend less comes up next. this is bloomberg. ♪

(announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

kathleen: lumber -- welcome to david: we will go to chinese mainland and let's get your top stories today. sending out a global warning on the strength of canonic coverage. >> it is not the time to talk stimulus exits.