>> good morning and welcome to "bloomberg daybreak: australia." i am in sydney. >> i am in hong kong. shery: and in new york, i am shery ahn. the economic recovery goal is not yet met. >> it is a handout hangover for

big u.s. banks. plus, in no mood for talking. the u.s. has a dialogue with china, as the biden administration pardons. breaking news out of chile, the central bank has raised from .5% from -- .75% from .5%. they tightened monetary policy this year following brazil last month. also, chile is forecasting annual inflation well above the 3% target big coming the latest -- becoming the latest emerging market to raise interest rates to .75% for the first time since the onset of the pandemic. it is all about inflation as the inflation debate is raging

across the u.s. here, take a look at the market, because of course we heard from chair powell, also saying that the u.s. economy has not recovered enough to scale back that mid-day decline in equity markets. we saw the s&p 500 touching all-time highs before finishing higher by .1%. we had the 10-year yield also falling below one point 4%. we are seeing it coming back a little bit lower, down .3%, despite the fact that we have seen it already dropping, and we have a buildup in u.s. steel inventories, but of course the surge in oil, we claim into that inflation debate. when i spoke to the chilean central bank president last month, he talked about how fuel was really pressuring living costs. >> and of course that is a big part of what we have been covering come these rising food costs in particular, really

causing a lot of headaches, particularly for developing companies. going back to that inflation debate, we saw that in just about every other currency in the world, the callback on syria. a lot of it was on the first active role, the final raging of interest rates. but this is interesting to virgins, isn't it, because without the guidance would be ok, and i know you have been covering the bank of canada as well. sophie: we are seeing it play into the markets, right? we see it's doing the biggest jump in years after we saw that announcement of another round of asset tapering coming from the bank of canada, so really we are keeping our eyes very much glued to the stock market, to the fx market, as we see the inflation concerns play out. haidi: yeah, it is interesting,

shery, jay powell and the u.s. economic recovery, still has not progressed enough to begin tapering. high in the coming months before moderating, so we are still on that transitory narrative in front of u.s. lawmakers. >> inflation has increased load ugly and likely will remain elevated in coming months before moderating. it is being boosted of the sharp pandemic-related price increases from last spring, dropping out of the 12-month calculation. reaching substantial further progress is still a ways off, but the progress will continue, and we will continue these in coming days as we said, we will provide advance notice before making changes. really it is a broad range of things, including wages, levels of employment, participation, all of those things. and we also said that we

provided advance notice, well in advance of actually tapering. haidi: our next guest is intrigued by inflation warren. we are joined by eva. they might be fatigued, but the debate right now is all about prices, right? what should investors be watching as we see the market move, really following any statement following chair powell, with other banks now starting to move, given these inflation concerns? eva: that is right. when it comes to inflation, we started cpi, it was 4% yesterday, but the market is young. that being said, we are tracking prices very closely. that is a cost push with inflation. we have many open positions right now. we are seeing the biggest concerns right now,

cybersecurity, we think that is a global trend, a sobering nation level. i think that is the biggest risk right now in the financial market. shery: eva, we saw also take gaining ground. that meeting coming at the highest since 2008. we have core ppi rising the most. why aren't investors more concerned about valuations at this point? eva: we think it is baked in. we thank all of this talk with so much q1 and q2, we think to three, more focused on the earnings. we think that they will be able to recalibrate when it comes to q3. in q2, we came from a very low base. that is going to change. this time, we are going to allow the tech companies to reach out. we will see whether their

expectations are measured or not. we have to remember, that enable market, cyclicals have more money to back into technologies, infrastructure or security. that is going to benefit the tech sector. we expect the year to end on a higher note. haidi: what is the risk and valuation argument when it comes to chinese taxpayers -- tech shares? are you in the camp as you see the valuations come down? eva: we are. we see the shift when it comes to chinese avr, and we have to remember that the risk has now become a reality. that being said, nonsense overnight, changing completely, that is high risk, and when this gets higher, the risk comes higher, too. but we have to remember what made these companies popular to begin with our their growth stories. as investors, we are always

interested in exciting growth stories. so once we see this risk is commensurate with their value when price, they might see an interest coming back in, in the market might also have overreacted. we think that once investors are able to handle the sobering risk associated with chinese investments, they might come back into the market. >> is that now over now that we are looking into the central bank hawkish is in the second half? eva: we thank, when it comes to bitcoin a particular, we expect a downward direction. we talked to members that, in q2, we saw a resource drop by 40%. the volume has decreased. data has shown that 15% to 20% is in bitcoin, but these are

investors that got burned. many of them came at the highs, they got burned. we have the issues. we have been thinking for a while now. we never had bitcoin in our front, and now we have criminal activity on the right. we have ransomware attack's. that is a terrible scenario. scenarios can happen out of individual business and the governmental level, and i think authorities feel responsible. we saw chairman powell today embrace with more information coming. we think regulation is imminent and forthcoming. haidi: eva, always great to happy with us, eva ados, coo and chief investment strategist from ershares. big news from netflix crossing the bloomberg. the company hiring an industry veteran to run that group on its platform, gaming, ea inc. and

facebook inc. to head the vice president of game development. the idea is a netflix streaming platform within a year, putting to a person familiar with the matter. they will have new programming genre, similar to what netflix has done in the past with standup specials. we are seeing them gain over 1%, the most since april in the regular session. let's get to sophie with a look at how we are looking at markets this thursday. sophie: haidi, futures are mixed. the doj likely to hold before any hands to be a path for tightening. -- hints to be a path for tightening. speculation there will be the outlook this year, holding the yen at 110. you have the kiwi dollar above .70.

73 within three months. also, indonesia and india today, pulling up a chart on the terminal, we have the southeast asia nation recording more than 54,000 daily covid cases on wednesday. that is a record. they have overtaken india it made the spread of the delta variant and the vaccinator a lot, but indonesia's numbers shery, are larger than we saw back in april. shery: tragic, those numbers both from india and indonesia. let's get to vonnie quinn. vonnie: thank you, shery. chair powell says inflation is likely to remain for a month. the economic recovery has not left the central bank's will, monthly asset purchases. chair powell: while reaching this is substantial, further process is significant -- progress is a significant ways

off we will continue in the coming weeks. as we said, we will provide advance notice before announcing any changes to our approach. vonnie: china's pushing back against the u.s.' attempt to crackdown at political efforts. a possible u.s.-led digital trade agreement in a bid to defend the u.s. power. separately, beijing condemned the plan. the white house warning individual businesses of operating in hong kong. the white house says the united states is sending more than 1.5 million doses of the moderna vaccine to sri lanka. they are being sent through covax, the global distributor for low and middle income nations. the biden administration wants to send 18 million doses of a mix of moderna, pfizer, and johnson & johnson in the coming months. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more

than 120 countries. i am vonnie quinn. this is bloomberg. haidi: still ahead, the brazilian rocket company. ceo adam gilmore joins us to talk about their latest funding round and the future and space. the talk with china continuing. we get more on the bloomberg scoop next. this is bloomberg. ♪ ♪

haidi: breaking news crossing the bloomberg, go cindy buyout, the sydney airport is not in the best interest of shareholders, really interesting, because almost $17 billion u.s. made was the biggest on record in

australia and about 42% higher than market value at the time, but we had heard that the cindy -- sydney airport abroad was going to reject the offer of the alliance. this is according to local reporting, and we are hearing that proposal has been rejected. all right, let's get into the bloomberg scoop. the u.s. won't be reviving former economic talks with china, which were abandoned during the trump era. reactions from beijing as relations continue to suffer. for more, we are joined by bloomberg national security reporter bill barrier. bill, they are having to reset the relationship, but we are getting more clarity as to what the biden approach is. bill: right. what we are seeing is in large part a continuation of the trump lessee and an expansion or

extension of them into new areas, so we are expecting a business advisory of hong kong to come as soon as friday. we have seen a new business advisory for firms that do work in the shandong region, and this latest news from janet yellen and her team at the treasury department says they do not see any reason to continue or restart the strategic economic dialogue that ended in the middle of the trump administration but which for more than a decade were a regular part of bilateral relations between china and the u.s. shery: so when will the next trying to be further both sides to meet? i know in the g20, the chinese delegation met virtually, so there was no opportunity to ch other face-to-face. bill: right. -- to see each other face-to-face. bill: right. we know the deputy secretary of state wendy

will visit, and that will let emil tony blinken and his counterpart to meet. it is really quite notable now, president biden has met with most of his counterparts in europe. he has met with leaders of japan, south korea, and he obviously had that summit with russian president putin just a few weeks ago. president xi jinping is the last remaining and the significant holdout from that agenda so far, so there is a lot of interest in when that will take place. haidi: bloomberg's national securities reporter bill faries there. preliminary secondary results are coming above estimates. this of course coming at a time when they are announcing the euros of 5.19 billion, and the estimate was for the euro to come in at around 3 billion

euros, so really above what the market expectation was. we will break down those numbers further later on, but let's turn back to china and see what the special gdp numbers will look like. we are expecting those numbers tonight. data expected to show that the country's growth rate rose sharply in the first quarter. let's bring in bloomberg economic chief economist tom orlik. it would not be a surprise given the second quarter last year was when china was coming out of the pandemic. tom: yes, that is completely right. in normal circumstances, it is the headline year on year growth rate for china which gets the most attention in the gdp race. this time around, because the first quarter of 2020 was so weak and because china was already recovering by the second quarter of 2020, we have got that really serious base effect, which is going to distort the

year on year numbers. so in year on year terms, we are expecting a big slowdown, from 18% growth in the first quarter to something like 8% growth in the second quarter, but it is really going to be the sequential quarter on quarter numbers and the monthly numbers with industrial production, investment, retail sales, which do a better job of telling us about the momentum of the chinese economy heading into the second half of the year. >> so, tom, that was a big deal. was that more precautionary or reactionary, and what does it tell us about a stations going forward -- about expectations going forward? tom: the people's bank of china has the ratio, as you mentioned, a low tax, and it was a surprise because it is a broad move. now, there is a view on the markets that maybe the pboc is

seeing something they really do not like in the gdp data. maybe the number is going to be much weaker than expectations. our view is that those fears are overdone. we think what the people's bank of china are doing is taking out assurance, again, in the second half. they do not want the economy to slow too much. it is not so much that there is a catastrophic slowdown already underway. haidi: tom orlik, bloomberg's chief economist there. joining jp morgan in feeling the pain from the market. this is bloomberg. ♪ rket. this is bloomberg. ♪

>> i think as we move to the fall in the united states in particular, the biggest constraint, other than, frankly, the virus pathway itself, is

going to be the big question -- can i get people to do the work, and can i get the goods to actually sell? that is what i hear from the customers, what they worry about. >> brian moynihan, bankamerica ceeo, speaking. the big tumble after the earnings. what stood out? >> significantly earlier in the session, we can see by the close, most stocks are down, bank of america in particular was considered over -- underwhelming. they fell short in the top line revenue, the stocks falling the most in eight months as a result, building back lending, income, loans, consumer banking was down from 12%, $10.3 billion. bank of america and j.p. morgan really sounding the story of stalled lending, and that is

when they wrapped the season. they rallied, as i mentioned, the estimates way ahead of expectations. citi also, you know, reporting that a lot of the big new hires was driven in part by a 37% jump in equities unit. ceo james fraser saying in a statement that she actually believed her view was the total trading revenue for the industry will return back to pre-pandemic levels, the pace of global recovery is exceeding expectations, and confidence is rising. she also is preaching closely at bringing people back to work and says they are watching the delta variant closely. wells fargo beat analysts' estimates, a sign that the ceo's

turnaround plan is really starting to take hold. shery: next in line is morgan stanley. what is the focus there? su: they reported one of their best quarters ever, and what we are seeing from some of the analysts is that the equities, outperformance is an area of perhaps to focus. the ubs global investment bank, a could also hold up well. what also is interesting about morgan stanley as we will hear a new female voice delivering a lot of the answers. sharon will be making her debut, the new cfo, on the earnings call, and, again, her promotion was announced back in may by ceo james gorman. you may recall that the bank elevated four senior executives to possible ceo contender, so,

yeshaya is taking a significant role in the conference calls. back to you. haidi: thank you. shery, one of the conversations is whether the price will translate actually into meaningful wage increases. we have not seen that, necessarily. blackrock, though, saying he has not seen the inflation in recent memory, and he is putting his money where his mouth is. he is raising salaries, a blanket 8% salary rise to everyone at direct level and below, starting in september. that is pretty nice i blackrock, given that we know they will be getting more. shery: also it does not hurt that they really did well in the markets, right? blackrock crossing that $3

trillion threshold in the second quarter for the first time. this is we continue to see the market rally at a time when they also have to factor in so many of those stories where people are just burned out, right? it is a good thing, those raises coming for blackrock. coming up

>> sydney's lockdown has been extended until july 30 as new south wales struggles to contain its latest outbreak of covid-19. another 97 cases were reported on wednesday. paul allen joins us now. conditions have not yet been tightened despite a lot of people calling for non-essential businesses to be closed down. will this be enough? paul: we will have to see, but as you say, no change to conditions -- no curfew. anything like that.

you can see in the harbor bridge a surprising amount of traffic and debate around what exactly is an essential worker so plenty of confusion about that as well and we did have 97 new cases reported on wednesday. those numbers are expected to bounce around. the lockdown extended to july 30 but local media really have been expecting that that will be four weeks instead of just two. all of this compounded by confusion not just over affirmations of essential workers but over relative risks of vaccines, who gets what, where you can go to get one. in the rollout has been absolutely catastrophic. scott morrison said earlier this year that the rollout was not a race. it is coming back to haunt him now, this reliance on a zero covid strategy. shery: it is such a race, globally, trying to get your hands on those vaccinations. is this outbreak starting to affect other australian states?

are they at risk? paul: sadly, yes. there is evidence it is spreading outside the state of new south wales. the state of victoria recording new cases. masks will be mandatory indoors again. that state has had a long history of grueling lockdowns but the government saying they are not looking at that option yet anyway. this was brought to victoria by a group of people who drove a truck from sydney and then were vague about where they had been and what they had done and it turns out they had broken a series of rules and drove on to south australia, where cases are emerging as well. health authorities are none too pleased with this group of people, saying books will be thrown when the time is right. for now, the priority is trying to get this on the control. shery: paul allen with the latest from sydney. a big interview coming up. we will be speaking with the tokyo governor about the virus outbreak as this city readies to kick off the long-awaited

olympics. we will bring that conversation to you in the coming hours. do have more about the virus situation elsewhere. we get to the first word news with vonnie quinn, who is taking a look at hong kong. vonnie: hong kong may soon allow vaccinated residents and workers to return from nations it has deemed extremely high risk. the south china morning post is reporting that travelers require quarantine and regular testing. hong kong has designated indonesia, the philippines, south africa, nepal, and others as extremely high risk areas. china and india agreed to continue discussions over their border standoff. dolly says the nation's foreign ministers exchanged detailed viewpoints over the situation which escalated last may. they will ensure stability on the ground, not taking any unilateral actions tensions. the ministers last held talks in

2020 after a bloody border skirmish. south africa's government is sending more soldiers to help end riots following days of looting and destruction. the country's defense minister said troops will be boosted from around 5000 to 25,000. the protests erupted last week after jacob zuma was jailed. within 70 people have been killed. -- more than 70 people have been killed. jair bolsonaro will undergo further tests to see if he needs emergency surgery. the presidential office says the 56-year-old was taken to hospital in cilia with abdominal -- brasilia with abdominal pain. a doctor was called in to evaluate his condition. johnson & johnson has voluntarily removed samsung screen products from the markets -- some sunscreen products from

the markets. it says it is recalling five neutrogena and aveeno brand aerosol sunscreen lines after testing identified low levels of nz and in -- of benzene in some products. they say to discard them. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: timeout for morning calls ahead of the trading day. what is on your radar today? sophie: in e.m. space, chile becoming the latest. indonesia has seen continued benign price pressures amid the third covid outbreak. the central bank is unlikely to cut rates next week. a focus in on providing liquidity to help companies survive the pandemic.

switching out the board to focus on oil, any bargain between the uae and opec-plus would prove to be too little, too late to to the global supply balance this summer so brent reaching $80 a barrel in the near term. however, today's crude oil price strength could be tomorrow's price weakness given that u.s. shale companies are showing their percent of recovery. haidi. haidi: sophie kamaruddin. we will be talking about the race to lower the cost of satellite into orbit as billionaires continue to battle it out in their space race. we will be hearing from the australian space company gilmore about how they plan to meet with bigger players in the commercial space industry. this is bloomberg. ♪

shery: it is all about the space race. we are taking a look at asian nations wrapping up their respective space programs. governments recognizing the importance of investing in space capability for economic and political reasons. three nations have the ability to conduct major launches. china, japan, and india. they are far from the only countries with space programs but they have the biggest

budgets for space developments. south korea announced it will accelerate its space program and boosted its budget $2.5 billion this year. this coming at a time when the u.s. and south korea have agreed to terminate that bilateral guideline that has long restricted seoul from developing missiles out of the range of 800 miles and that is opening up some nations ability to boost its launch capability for space and defense. bloomberg spoke exclusively with a science minister about these plans. >> the artemis program is the standard for moon and space exploration. it determines the guidelines for each country that is taking part , and with south korea taking part in this, we get to participate in space eckler. -- exploration. with artemis, we plan on expanding space explorer ration related investments and actively revise our system such that we

can lay the foundation for private sectors to participate in space development. >> you are expected to launch a satellite using your own rocket engine. can you elaborate about the plan? >> korea's created its evaluation steps as of this march. we are currently putting together the flight model. we believe that if all goes smoothly and passes certification tests, we will go forward with this october launch. this is a significant becomes it means our domestic engine parts have the seventh most powerful liquid fuel engine with a capacity of 75 tons for its projectile. this means south korea is seventh in development capacity. we look forward to constant development in the future on the space exploration front where a future generation can expand its activity platforms to include

space exploration as well. >> south korea was planning to send a spaceship to the moon in 2030. do you still have that plan? >> we are currently undergoing studies to design our lunar lander that we plan to launch in 2030. we believe we can start on developing our lunar lander in 2024. the reason for moon exploration is because we expect it to be utilized in the future for not only national defense and the public sector but the economic sector as well. in that sense, we believe we have to actively take part in the artemis program in order for such cooperation to take place smoothly. haidi: the science minister speaking about the space expansion plan. the space sector is increasingly becoming more established as private players open their doors. race is on to lower the cost of getting into orbit with spacex

at the forefront thanks to its reusable rocket. our next guest runs gilmore space technologies, aiming to be a global provider of affordable launches, and they are planning to launch the first commercial customers into orbit next year out of australia. joining us now is the ceo, adam gilmour. tell us about the opportunities in this market, you know, what the competition -- we talk about the congestion in the number of players that are available. what is the application? >> thanks, haidi. one of the important things when you're talking about rockets is we see two different markets. spacex and blue origin are large vehicles that take large payrolls into space -- payloads into space. what we are seeing out of the satellite market is that satellites are getting smaller and smaller. there is a lot of demand between 100 and 50 to 250 kilograms an hour rocket is designed to take

those into space. the other thing people don't understand much about space is it is very, very specific when you go into orbit, it is hard to move around in space. it is not like you have a millennium falcon that can fly around. once you are in orbit, you are basically staying on the same track so it's a lot easier for a small rocket to take a small satellite directly where they want to go in space compared to a big rocket. if i put it into financial numbers, we think by 2025, there will be $5 billion worth of launch contracts to take small satellites up into space, which is roughly the total revenue of all satellite launches annually in the last few years. >> adam, what are the biggest challenges for the sector? >> i think the biggest challenges are just getting the technology right. it is incredibly hard to get to space, especially to get to

orbit. there is not a lot of talent especially in australia. you have to train a lot of people, import talent from overseas. government spending and help on technology certainly helps. we are seeing a lot of that in the other countries. we are not seeing that much yet in australia but the signs are good. we just got to step-by-step breakthrough all of the technologies. we are very close to launch now. we intend to have an orbital vehicle finished by around the end of next year, tested for another six months, and then launch it into space around the mid of next year. >> haidi mentioned that crowded field you are in. who are your biggest competitors and what is your age? adam: customers look at a number of things. cost is a big one. they also look at capacity. if you have a 300 kilograms satellite, you have to go on a bigger vehicle. so we are looking at mid size,

small rockets. our main competitors are firefly in the united states. >> you have made also already $46 million in the round you just carried out. rio do you plan to spend the money? how are you allocating your funds? adam: what is really important when you are running a rocket company is there as an expectation that the first rocket fails so our investors did not want to just give us enough money to do one launch so we are very carefully budgeting that we can do up to four launches with the money. we are not going to spend a tremendous amount of money on building a brand-new factory like a lot of our other competitors have done. we are not going to buy $10 million machines. we will use the supply chain we already have in australia and that allows us to develop annex rocket in what a lot of people will think is an impossibly low

amount of money, but we are confident that we can do it. haidi: how are sovereignty issues playing out in space? adam: it is becoming much more evident, i think a lot of the countries have realized that especially in defense even in everyday life, we absolutely and totally rely on satellite in space, and its relatively easy to take them out with kinetic missiles or radiation or radio frequencies. as i said before, they are going in very predictable orbits. it's very easy for an adversary to take them out so our allies are getting very nervous about how to stay resilient in space. what can we do to make sure that if there is an attack, we can replenish as quickly as we can? we are having a lot of those discussions at the moment. shery: adam gilmour, thank you so much.

space technologies cofounder and ceo. coming up next, we hear exclusively from microsoft jo on how the company is about its products for the world of hybrid work. this is bloomberg. ♪

shery: microsoft kicked off its

conference this week. the ceo spoke exclusively with bloomberg's emily chang about everything from it to -- to why cyber security keep him up at night. >> as you said, in hybrid work, the real currency or the real need is more flexibility. that means more options for how to get to your software, your applications, your content, your files, so we are excited about this new category we announced which is the cloud pc in windows 365. we are all getting ready to welcome a way for interns to have a pc that now is available in the cloud so that means it is easy to provision, easy to secure. if you think about in the pandemic some of the software engineers, industrial engineers, they had real issues on productivity because they wanted access to the most sophisticated computer capabilities and now they can have that in the cloud

and they can be working on their home computer or corporation issued computer but they will have access to all of the content they need so we are excited about that c. >> you spoke about giving your partner's the most powerful technology and tools and you are giving teams customers more features, access to dynamics 365. how does this fit into your vision of how we will be working differently one decade from now? >> one of the very exciting other announcements from this morning is, if anything, the silos that exists today between communications, collaboration, and business process, they have to come down, so the friction all has to be broken so that is what this new class of applications called collaboration applications that many of them got dealt during the pandemic. people were building essentially

the connections between dynamics 365, power apps, and teams. what we did this morning was to announce that we are going to make that friction free even from a licensing perspective. i think it's going to really speak to the overall need of flexibility. when we did our own surveys with other employees, we have 70 odd percent people who say we want that human connection and 70% who say we want flexibility and that is the hybrid paradox so that means it requires structural change in how we about people, process as well as the place where hybrid work happens so we are working across all of those dimensions. haidi: microsoft ceo satya nadella there. sydney rejecting the proposal, saying it undervalues the company. the offer coming in from a consortium of investors betting on a global travel

rebound. this was a record offer and over 40% above the market value at the time so they rejected it still. >> that is right. they unanimously concluded that the offer from the pension funds, which includes ism investors, undervalues sydney airport. it is not in the interest of shareholders. the offer was 22% higher than its market value at the time. their shares closed at $7.80 yesterday, which is below the per-share offer. shares jumped on the news when the takeover offer was offered but they are still trading at below pre-covid levels which i think is why the offer was rejected. >> are we expecting the shares to fall further given the rejection here? satya: they did say in their statement this morning that their share prices are likely to

trade below the consortium offer price in the short-term. it's called the proposal opportunistic because of the impact of the covid-19 pandemic which that has had on the share price performance. sydney airport said it has its diversified earnings as well which includes high-yield retail, car parking, ground transport so it is all of these other revenues to bolster its share price. i guess it has a lot of long-term growth opportunities. the company says it will be strongly conditioned to deliver growth as well as vaccination rates increase and we move towards a post-pandemic recovery period, but i guess to mirror this work, it is not doing much today, down 1% at the moment. haidi: given the recovery is

looking like it is the long run, what comes next for sydney airport? thuy: we have had reports that a consortium led to macquarie group is exploring a rival for with sydney airport but there's been a lot of uncertainty. there's been a lot of deals which have not gone through because companies are reluctant to sell because there is a period of economic uncertainty and there's been instances where deals have been stretched out and proposals have been stretched out for months. add to that international air transport, global air travel might not fully recover until 2023. international borders in australia are expected to remain sharp so there is a lot of uncertainty going ahead. haidi: our equities reporter in sydney, still watching that sydney airport story after the offer was rejected for $17

billion. we are getting some numbers coming through from woodside oil production, second-quarter numbers coming in at 22.7 million barrels of oil or equivalent, and we are also seeing second-quarter sales revenue numbers coming in. $1.9 billion. the u.s. is coming in at a second-quarter capex of 335 million as well as sales and volume numbers coming through there as well and we are watching some of these oil producers keenly given the spike we have seen in prices and the uncertainty coming through from the demand-side thanks to the delta variant outbreaks across the region. let's get you a quick check of the latest business flash headlines. netflix is taking its first major step the aunt tv shows and film, offering video games on its streaming platform within the next year. former ea and facebook executive -- has been hired to lead the efforts. games will appear alongside current netflix content. for now, subscribers will not be

charged extra. amazon has considered developing a wearable for children aged four to 12, but it's unclear whether the project will move forward. the device would let parents monitor their kids and give access to amazon's children focused content. amazon explored the concept in 2019 as part of its product roadmap for the following year. a landmark donation days before his trip to space. bezos will give $200 million to the air and space museum to fund the creation of the bezos learning center, with the rest spent on renovations. it is the largest single donation since the founding gift in 1846. shery: coming up in the next hour, the defiance cofounder shares her markets outlook. we also hear exclusively from the advisor to japan's prime minister, yoshihide suga.

another big interview coming up. i will be speaking with the tokyo governor about the virus outbreak as the city readies to kick off the long-awaited olympics. we will bring that conversation to you in the coming hours. "daybreak australia -- "daybreak asia" is next. 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 ♪

haidi: hello and welcome to "daybreak asia." i am haidi stroud-watts in sydney. sophie: i am sophie kamaruddin in hong kong. shery: good evening from bloomberg's world headquarters in new york. no mood for talking. the u.s. says it is keeping economic dialogue with china on ice as the bite in teams stance hardens. jay powell says theap