♪ >> welcome to daybreak australia. in hong kong, -- >> getting a new york. the reopening -- reverses global stock slump as growing virus worries fuel a rush into havens. >> surging infections prompting

travel advisories for the u.k. and middle asia. australia's biggest cities struggling to me 10 outbreaks. >> washington and its allies blame china for the microsoft exchange hack, including -- accusing them of a broader range -- array of malicious activity. >> we saw that selloff in the u.s.. u.s. futures now extending up one quarter percent. not long after, the s&p 500 broad selloff in the new york session. the russell 2000 with small caps on a five month low. on the cusp of that correction. almost down 10% from its march peak. we saw the u.s. 10 year yields continue to fall 14 basis points lost in treasury yields in four days. crude right now continues to lose ground after we saw a sink in the new york session given the opec-plus agreement.

the s&p 500 over the past year, every time we have approached the 50 day moving average of around 42.40, we saw the by movement. we have already four selloffs this year continuing to be supported by those younger investors. we saw that rush into etf's as well. >> i want to see if we can bring up this shot that shows multiple times over the past year we have seen the s&p stumbled to the tune of 3% or more. ev time we have had retail investors rushing in and paying that off. this sort of behavioral science that looks at the market and says there is a lot of accumulation of very young people still in this market. younger investors in particular have used these selloffs as new buying opportunities if they have excess cash. it will be interesting to see whether that demographic -- so dominant in this narrative, will

come to the rescue again. >> i was discussing it with northern trust chief investment strategist jim mcdonald. pray to have you with us. what will bring those -- really see those retail investors come to the rescue again, or is this justified given all the rallies to all-time highs this year already? jim: a couple thoughts. the first is, the institutional buyer has been the flip of the retail buyer. one of the reasons bonds have rallied is that institutional investors have rebound out of equities, which dachshund to fixed income. it is justified on a short-term basis. there has not been 10% to nearly 56 weeks. if you look at the issue of the delta variant and covid, it is the short-term concern. toward the end of the year, most

western economies are going to have immunity in the 75%-80% range. intermediate is longer-term problem. >> does that mean rotation back to those stretched valuation growth stocks right now is unjustified? this chart on bloomberg showing that rotation and how value has started to underperform. >> it is completely understandable. whenever you see the yield curve flattening, people go towards growth stocks. it will take a turn towards the viewer they cyclical improvement which we expect to resurface over the next couple of months. it will lead to better performance out of value stocks. growth stocks have a great intermediate to long-term position. we don't think you want to avoid growth stocks in this kind of environment. >> if you think the russell 2000 is oversold, the bond story is

overdone, where are you rebalancing within those extremes we are seeing? jim: our most recent move an hour global policy model, re-reduced our exposure to interest-rate sensitive areas like investment grave bonds. -- investment grade bonds. also, emerging-market equities where we are concerned about the outlook for chinese growth and foreign policy. we have reallocated that into u.s. high-yield bonds, then remain overweight in european and asian developed equities and u.s. equities. >> whereabouts nhl? this part of the world is perhaps struggling more than most -- whereabouts in asia? jim: it is broadly spread across the developed markets. of course, japan, australia, etc. if you look at areas where we do have over weights, it gets into some of the cyclical parts of the economy.

natural resources which are taking a breather. we've got excellent play on the continued growth and recovery of the economy. also, the very constraints apply we are likely to see over the next couple of years in growth in many different commodities. another i would mention is globalist taken for structure which is a higher lower volatility asset. >> let's turn to fixed income. we are hearing from j.p. morgan saying those treasuries are pretty overbought. your thoughts at where we are going to be at the 10 year yields come next year? jim: we have been at the lowest end of our competitors of where we thought yields would be. our range for the 10 year treasury is up to 1.75%. we see some upward movement in rates, but we really see a very large technical support for fixed income today.

people who are looking just at growth and inflation as driving inflation rates are missing a big part of the boat. that is what is going on from a portfolio positioning and just a huge wall of cash out there on the global investment environment. >> jim mcdonald, great to have you with us from chicago. we have an alert on the iron or giant volley -- a fresh blow to what is already a tight global market for ore. we are hitting production capacity of 330 metric tons in the second quarter 2021. also seeing numbers when it comes to other production metrics, broadly missing estimates. this is the world's second-largest iron ore producer. 78 million trick tons the average estimate.

still up from -- the covid impact period, but we are seeing that ongoing recovery from that early 2019 disaster. big factors when it comes to production numbers coming out of the bail -- vale. let's take a look at he -- at this tuesday session. >> early morning we are seeing futures from chicago little change after a five-day climb. this appears could be -- with risk assets getting dumped monday led by inflation trades and cyclical stocks saying. maybe the worst loss for asia in a month and the biggest decline for european equity since december. if this pullback is justified given their are improving vaccination rates and higher vax and is a -- higher vaccination rates. the bond rally did push the 10

year yield below 125 ahead of the meeting ended is due today. ahead of the updates from china on its lpr, no change expected there. offshore year end trading low buying six handle against the greenback. jim mcdonald just pointed out there are reports about a slowing pace of growth in china. the yen holding firm. this as we saw -- to safety over the city of -- tom fitzpatrick growing short. saying they are looking to at their short position to move toward the 107 level. pulling up the chart on the terminal, oil could be the leading signal for more equity weakness. the biggest draw for prices since september as bullish bets seem to be unwinding over demand uncertainty. in indonesia, the surge of covid infections weighing on the outlook.

it could be credit negative. >> not to mention the opec-plus deal. let's get first world headlines. >> the centers for disease control is warning that americans should avoid travel to the u.k. as possible because of the surge in covid-19 cases. the cdc's travel warning is now at the highest level. the advisory comes a day after the u.k.'s so-called freedom day, a lifting of restrictions to mark the full reopening of the economy. the u.k. added more than 100,000 new cases over the weekend. also in the u.k., vaccine certificates are set to become a requirement in nightclubs and other venues at the end of september. prime minister boris johnson delivered the news via video link from the self-isolation after exposure to the nation's health minister who had tested positive for covid-19. >> the roadmap we hope is a reversible, but we can't go and

do something -- something could happen that changes our calculations. we've got to be humble in the face of nature. there could be some new mutant or variant of the virus that we have to respond to in a particular way. i have always been clear about that. >> a female u.s. gymnast has tested positive for covid during a pre-olympic training camp. olympic officials declined to name the gymnast, saying she was in her teens. two other athletes from the south african soccer team have tested positive as cases tied to the games continue to rise. the international monitors are growing more concerned over iran's expanding nuclear program as tehran refuses to expand an and -- inspections.

-- accurately documenting nuclear activity. iran says it won't allow inspections until negotiations through store the 2015 agreement are completed. 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. this is bloomberg. ♪ >> let's it to lima, peru where we are hearing from a presidential candidate, insisting on fraud before the imminent proclamation of the president of peru after more than a month since the vote. there was a vote that ended with political outsider and leftists pedro castillo ahead by a narrow margin. now, -- fraud allegations, claiming castillo is illegitimate. last week we had heard the electoral authority would be

making this proclamation, we saw peru -- rallying. now seeing a little weakness this week. we will watch developments one month after the elections in peru. still, we are closer to -- >> continuing to watch those developments. still ahead, we get a preview of netflix's for a in the videogames. first, the u.s., u.k. and allies are calling out china for alleged cyberattacks including the microsoft exchange hack. this is bloomberg. ♪

♪ >> the u.s. and allies have tied

microsoft exchange hacks to the chinese government, accusing beijing of malicious activity. pres. biden: they are still determining exactly what happened. my understanding is that the chinese government, not unlike the russian government, is not doing this themselves, but are protecting those who are doing it. they may be even accommodating them. >> that spring in -- the biting administration wants to expose the extent of chinese activity with help of european allies. what are we expecting? what do they know? >> they basically have said they have done their homework on this massive cyberattack that happened earlier this year through the microsoft exchange server that resulted in a tax on a range of companies.

this lays the foundation for a couple of things. it is really a very public escalation of tensions between the u.s. and china. as you know, there is already this existing tension over hong kong, the treatment of muslim minorities, and this basically shows that cybersecurity is going to be one of the many issues that are on the table between the u.s. and china. it also could be used by the u.s. and its allies to justify countermeasures against china. going on the offense of in terms of cyberattacks. that is something that they don't talk about, and we wouldn't know the details of that for quite a while. it certainly shows an escalation. >> what is possible? we heard the president likening

this attack to what the russians are doing and we know that in that case they are having sanctions. >> exactly. or countermeasures. this is the opportunity for -- does the u.s. go in and use cyber espionage against china? against russia? what are the other ways it can go out and effectively takedown networks, and more aggressively combat these groups that are behind these activities linked to groups like advanced persistent threat 40, actively going against them and having the u.s. government try to take them out digitally. >> our global tech executive editor there with the latest on those hacking activities. to get around up of the story

and more you need to know in today's edition of daybreak, subscribers go to daybreak go on your terminal, and customize your settings so you only get news on the industries and assets you care about. this is bloomberg. ♪

♪ >> the u.s. telling citizens not to travel to the u.k. and indonesia because of covid infections. that puts even fully vaccinated people at risk. the warning comes as the u.k. lifted most coronavirus restrictions on so-called freedom day. the state department has ordered a travel advisory for india. let's get the letters -- latest from michelle cortez. how concerned should we be about

this delta variant when in the u.s. we are seeing a growing number of people being vaccinated or more people being vaccinated than the rest of the world? >> at this point, vaccinations seem very effective against the delta variant. the concern is that you might get infected, but not developed serious infection or serious disease, hospitalization, or die. it does still give you protection. the concern is people who are on vaccinated and we are seeing delta spread more quickly than any previous strains. people who don't have protection against the virus are really in danger if they encounter it in anyone else. >> anthony found cheap pleading for more vaccinations. take a listen. dr. fauci: among vaccinated people, that is a significant risk and the reason why we are practically pleading with people to please, if you are not

vaccinated, seriously consider getting vaccinated. >> we have seen initial huge success in vaccination, bookings in france when they introduced vaccine passports, is that something that should be considered? >> vaccine passports are one way that would encourage some people to perhaps get vaccinated. certainly as dr. fauci was saying another people have said, the only way we are going to get this under control is through vaccination and we really do need everyone to roll up their sleeves and do it. if vaccine passports are the way to do it, that sounds great. also, it seems at some point we are going to see people getting feedback. you hear about people who have in fact -- who have died on vaccinated because of deaths in unvaccinated people.

people who do not have the mrna vaccines. as we have seen more cases, there has been a natural encouragement for vaccination efforts. in some parts of the world, we don't have enough vaccine. ramping up production and rolling it out more broadly is critical as well. absolutely, you have to have immunity. the only way you do that is by going through an infection, which annuity wants to do, or getting vaccinated. >> we are hearing the u.k. is planning some sort of vaccine passports for venues like nightclubs. it will be interesting to see whether they become more normal. michelle cortez. we have breaking -- on the back of veil coming through with numbers short to worry production. meeting expectations more or less, but slightly higher than

expectations when it comes to four year total iron output between 278 and 288 million tons. we are also seeing numbers when it comes to petroleum, but certainly it is iron or that investors will be weighing on given the tightness of supply we are seeing in demand, or continued demand out of steelmakers in china despite environmental curbs on the back of global were covering. let's turn to australia where covert cases remain stubbornly high. the secretary premier saying the stay-at-home order will be extended. >> the signs are positive that we will need more time to be certain that when we open we can stay open. that has always been what has guided us. we have avoided, i know we have avoided something altogether

worse. that is weeks, if not months of being closed. we know what that's like, we don't want to go back to that and we are -- i am determined to do everything. there are no guarantees, but i am determined to do everything i can to make sure that does not happen. >> that is the latest. georgia, you hear from andrew there, with the rest of the -- pretty traumatized over the extended lockdown they have already suffered through. where do we go from here? with the numbers coming down, epidemiologists are saying we are setting up for weeks and months to come of lockdown. >> that's right. in victoria, they have consistently adopted this extremely cautious approach to lockdown. this morning we are expected to hear from daniel andrews to extend that lockdown. we don't know how long that is

going to be expanded for, perhaps a week. in the past, victoria has extended lockdown's, then reassessed as they expire. i suppose victoria has to maintain this approach is the rest of the country is going in stamping out the virus from the community. yesterday, their chief medical officer may very interesting comments talking about the delta variant, saying there is no guarantee we can win. >> any rethinking about covid zero approach? >> i would say no. states like new south wales and victoria are extremely committed to this approach because there is nowhere else to go until vaccination rates climb significantly. with a lack of supply going on across the country, now covid zero is the only approach to maintain. >> the latest on the outbreak across australia.

we will have more to come on daybreak.

shery: we are counting down to the first rocket launch of blue origin. let's get to van horn, texas with emily chang. you are telling me how nerve-racking it was being there. must be exciting? emily: jeff bezos has said over and over he is excited and not nervous but i am nervous thinking about watching him go up there, maybe it is the mom and me.

of course, we are all hoping for a successful launch. it is windy here in the middle of the west texas desert. there is lightning overhead. but from what we have been told, according to the weather report, it is all systems go. in the morning is when the weather and storms clear generally, so that gives them a launch window to pull this off. it is scheduled for 8:00 a.m. central time and we are now 14 hours away. we did just get a surprise visit from jeff bezos himself. he came to deliver dinner to the press corps, with his brother, mark, who will be on the shuttle with him. chicken, black-eyed peas, and mac & cheese. someone asked if it was his last meal and he said, what are you talking about? we are not going together. so he is -- we are not going to go there. so he is feeling optimistic. they will be up early for a

refresher course. then we will see if it is all systems go. haidi: what a depressing thing to ask a man he is going into space? emily: they meant the last meal before lunch, but he took it that way. [laughter] it did not come out right. haidi: [laughter] also, nothing is guaranteed with these launches. you see how they are delayed, for rocket launches. what are the chances of it happening on time? emily: a significant amount of the time space launches do not go off as planned. we cover the virgin galactic launch when we go and that was delayed 90 minutes which is good by space standard. sometimes it can be one or two days, ultimo days, or months. the engineers have told us they have a few-our window -- few-hou r window after 8:00 a.m. where

if it gets delayed they can go maybe three hours. but if it gets to far after that in the afternoon they are moving into bad weather and it will likely move to the following day. they had weather balloons today and they will do that tomorrow to get a sense of the conditions up there and they expect the winds to be favorable. what is interesting about this launch, it is only 11 minutes, twice as long as a roller coaster. it is up and then it comes back down. midway through the launch, that is when the crew capsule jeff bezos, mark bezos, wally funk and oliver are in, that will separate from the rocket booster and continue on up into space. over the carmen line, they will experience 3-4 minutes of weightlessness. the booster will come down to earth. then the crew capsule will come down to earth. the parachute, three of them, willfully and flight and land in a cloud of desert dust,

hopefully, somewhat comfortably. shery: it puts it into context, all of that money and energy for 11 minutes, but how exciting is that? you mentioned virgin galactic and the launch at how different is the vision of jeff bezos from branson or elon musk? emily: richard branson and virgin galactic are focused on space tourism only. there flight is over an hour. the mothership takes a high altitude flight into space and that plane drops and continues on up into space. but the whole mission is about 65 minutes. and we are looking at $250,000 a pop. four jeff bezos, space tourism is a small part of the equation. as i understand it, he wants to demonstrate the technology now, he wants to demonstrate he can do this and that he has confidence in blue origin and the spacecraft and the mission itself.

certainly, they will sell tickets to space. but ultimately, they have talked about building a road to space, the infrastructure that would allow other entrepreneurs, other businesses, to build out this larger space economy. it is not about going to mars, which is what it is for elon musk. jeff bezos believes earth is the best planet. this is the only planet we are really going to want to live on, so we need to protect it. as civilization grows, we are going to use more energy. he thinks he could run out of energy. we could go to space for that energy, factories could move into space or be powered by the sun. for elon musk, he has talked about colonizing mars. he says he wants to die on mars which is perhaps what we have not seen him in a rocket yet. -- perhaps why we have not seen elon musk in a rocket yet. haidi: emily chang of bloomberg

in vanhorn, texas. earlier we discussed a future of space tourism. >> what we want to do, we have flagship programs which are among the best in the world. copernicus is a program to monitor the planet, we take the pulse of the planet. we have galileo, navigation program, among the best in the world, with the highest accuracy. there is space science, more exotic, where you look into the universe and see what can be done with satellites, to explore our origins, our universe, for questions like where do you go, where you come from? and to understand other planets and comets, we have fantastic missions. we are planning exciting missions in the future. we have a lot of diverse activities. what i really want to achieve is

that spaces put more at the center of the political agenda of top decision-makers in europe , as it is happening in the u.s. and china. i think europe has to catch up in this regard. >> particularly as the billionaires in the u.s. are so far ahead in ways. when you look at the space economy, what is the potential? what kind of market cap are we talking about? what kind of use cases are there? >> there are huge cases, the market for space comedy economy is expected to be on the order of $300 billion -- the space economy is expected to be on the order of 300 billion dollars according to morgan stanley and the estimated goes to $1 trillion by 2040. it is a fast expanding market and the fast expanding part is the downstream segment, converting data into information. there you have growth of 10% or more for segments. from a business point of view this is an interesting sector.

that is the reason the billionaires are investing in space, because it is a sector with huge potential commercially , and from a strategic point of view. >> the militarization of space, what does that look like and how does your participate? is it like countries fighting in space? is it dominating for the satellite spheres to dominate what is happening on the ground? how do you see that part of the space economy developing, and the role of europe in it? >> that part is certainly one of the biggest drivers of space altogether, defense and military aspects are more than half of all the investments done in space. but in europe, this sector is much smaller. that is something that certainly europe will need to reflect, whether we also want to have a space force, like the u.s. china's space program is very much driven by the defense

sector. europe is not comparable in this regard with the u.s. or china. but it is something i would like to discuss with top politicians and decision-makers to see why europe is not using space to the same extent. there are some national agencies having space programs but not at the european level, at the pan-european level involving all countries. shery: that was the director general of the european space agency. we will have more discussion on the evolution of space industry later with space startup from india that develops surveillance systems for tracking brie and satellites in low-earth orbit. haidi: don't miss our special coverage of the blue origin launch which startek 8:30 p.m. tuesday hong kong time and 8:30 a.m. if you're watching on the u.s. east coast. that's cute of -- for -- let's get you to first word news. su: the u.s. and allies formally

blaming affiliates with china for a cyberattack. the group achieved -- accused beijing of a broad range of malicious cyber activities including data theft and cyber espionage against public and private entities. the white house says it will take steps to counter chinese activity. meanwhile, republican lawmakers urging u.s. olympic committee to for bit american athletes from using china's new digital currency at the 2022 winter beijing liv-ex. -- olympics. they said the tokens may be used to's for surveillance of china citizens. china's digital yuan is still in a trial phase but there is concern it may be used to challenge the u.s. dollar as the world's reserve currency. president joe biden revealed he told fed chair jerome powell at a recent meeting, the bank should take necessary steps to combat rising inflation and enter the economic recovery.

president biden make clear the fed is independent. pres. biden: my administration understands if we were ever to extremes unchecked inflation over the long-term, that would pose a real challenge to our economy. so, while we are confident it is not what we are seeing today, we remain vigilant about any response needed. as i made clear to chairman powell of the federal reserve when we met recently, the fed is independent, to take whatever steps it deems necessary to support a strong, durable, economic recovery. su: the interim prime minister of haiti, leading the nation since the assassination of the former president will step down amid a power struggle in the country. joseph will be handing leadership over to a neurosurgeon named prime minister two days before the murder. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more

than 120 countries. i am su keenan. this is bloomberg. haidi: next, mediatech capital partners joins us to preview netflix earnings and says good content remains key but taking on disney and warner media will add to a substantial debt. this is bloomberg. ♪

>> you are watching "bloomberg daybreak: australia." the reflation trade getting unwound. several stratasys say stay the course. at goldman, a strategist led by peter oppenheimer says in the short-term growth has gone too far, expecting a mix of--and value should perform well in anticipation of frequent rotations between sector styles in the --phase of the market. while we see risk aversion take hold, we have the yen trading at one a nine spot 47 early in the asia session. hsbc reckoning should we see more risk aversion unfolding at a faster pace, the clear play be trying to outperform with the dollar. at citigroup you have tom fitzpatrick increasing the banks dollar yen short position,

eyeing the completion of a head and shoulders break --54 on the dollar yen which just moved toward 107 spot 50. at td securities you have focusing on a deteriorating backdrop for that dollar yen technical area. and differentials playing to declines. yen strength seen. shery: a deteriorating backdrop when it comes to meme stocks also. this risk off sentiment really hitting meme stocks which were down for a sixth consecutive session, the longest losing streak since the meme stock's frenzy began as the chart on the bloomberg shows. we have seen losses focus on amc, gamestop, which rallied when we saw those retail investors coming into the market. haidi: is this the end of the chapter, and what is it mean for this highly anticipated ipo by robinhood? they are seeking a valuation $35

billion, just shy of the highest analysts'estimates. meme stocks have been a bread-and-butter for their business. they are pushing against a disappointing backdrop for u.s. big ipo's. take a look at didi down 21%. --down 24%. other names, bubble ,-- bumble, slightly above the ipo price but has come down from the first day of trading. so there is concern robinhood's debut may not be smashing. investors will also watch out for details when it comes to netflix' recently announced videogame strategy. subscriber performance will be in focus and it is reporting second-quarter earnings later on tuesday. let's bring in a man who spent decades focused on the media, entertainment, and tech centers. porter bibb joins us now.

give us your expectation of the role netflix has in a post-pandemic, post lockdown world? >> netflix is going to surprise a lot of people and put on or new subscriptions than most of the analysts have predicted. but those new subscribers are coming from outside the united states. the only growth they are experiencing now is international. the u.s. subscriber base is pretty much stalled, and probably not going to go anywhere fast. it is interesting that netflix is now a mature company, not going to be justifying the 62x price earnings ratio it has, 3.5 times the average of a company on the new york stock exchange. but they are going to show growth.

the smart guys are going to be selling on the news, and then holding their breath and waiting for the third quarter and fourth quarter. it is the fourth quarter especially netflix will have pent-up production stalled during the pandemic coming on screen. but the same thing will be happening at amazon, at disney plus, at hbo plus, at all of the other streamers. and people now are beginning to wonder, if netflix can hold the line and continue to track -- to attract people especially in the united states, because they are running into a serious logjam in terms of production capabilities. this, despite the fact that last year they spent $18 billion on new content. that is more than all of the major studios in hollywood spent combined. so, they cannot keep that up.

there are slightly ahead on free cash flow right now, but the future is very bleak going forward. haidi: there are a lot of people, especially wall street, scratching her head at how successful the gaming for eight will be, right? we have seen the experience -- foray will be, right? it is not easy to build a gaming business from scratch. >> it is not easy and they hired a smart guy from electronic arts, but that is one guy. it takes months or years to create these mind blowing wonderful multibillion dollar user games. there is no lack of competition out there for the gaming developers. so i think it is problematic. by the way, netflix announced they are not going to charge. they're going to throw the games in for free if you become a

netflix subscriber. that is not going to help the bottom line at all, because it is not inexpensive to develop these games. shery: how long do they have to come out with a blockbuster new idea, before the stay-at-home trades cool off? >> as the pandemic slowly starts to wind down and people want to get back out of quarantine and out of their houses, it is going to be very difficult for netflix to create blockbusters, the way they have in the past for five years. and the, -- in the past 4-5 years. the competition has an advantage over netflix. it is a one note song, a user subscriber company. they do not have theme parks or broadcast networks or other media properties to generate revenue. the idea that --is going to set

up shop and sell netflix products, what happened to blockbuster as video retailers? they don't exist anymore. shery: is netflix a cell for you that? -or-are you sell for you? or are you hoping a bigger company will acquire it and you could see bigger profits there? >> ultimately i think netflix has to be an acquisition target. there are three or four major companies that do not have a content streaming producer. microsoft, being one of the biggest. facebook, and google could buy them. specifically, comcast, which is not getting anything like what ryan roberts would like to see from peacock, there streaming entry. -- their streaming entry. they made a close and tough bid

to buy 20th century fox and lost out to disney. they might just wait around long enough for the share parks of netflix to come down to earth, and then skip them up. but i do not see netflix as a standalone five years from now. shery: interesting. porter bibb, managing partner of mediatech capital partners, thank you. you can also turn to your bloomberg later for more on netflix' second-quarter earnings. this is bloomberg. ♪

shery: bitcoin seeing a little upside now but still below the $31,000 level in the new york session, heading toward a crucial $30,000 level. we also see the crypto index by bloomberg around a one month low, with incredible pressure with a 14 day rsi for bitcoin your oversold levels. not surprising when it comes to the new york session in the equity markets, crypto exposed stocks are really a sea of red across the board. we also have the secretary of the treasury janet yellen now talking about more regulation pushing top u.s. regulators to come up with new rules sports stable coins.

so it is no surprise we continue to see the dow pressure on crypto stocks. -- we slot -- downward push on crypto stocks. haidi: ibm reported its biggest sales increase in three years beating analyst estimates. almost $19 billion in the second quarter signaling the pivot to the cloud is starting to pay off. krishna took over ibm during the pandemic and since and that company has gone on an acquisition spree spending $3 billion to bolster its cloud and ai capabilities. a chinese home service platform is said to be --u.s. ipo plans as china scrutinizes overseas listings. the alley- back-- ali-backed company is waiting for guidance from regulators. it would join a chinese platform a little red book in setting aside listing plans after the followed from didi global u.s.

ipo. probed by india's markets regulator according to a junior finance minister who said the investigation is related to compliance and securities fraud but did not elaborate or name the bonnie property -- ambani property probed --. city entertainment will close its adelaide casino for four days after increasing cover 19 restrictions. this is in response to three new community cases. -- will remain open for existing hotel guests. the new zealand cavities are unaffected. shery: we have more -- the new zealand companies are unaffected. shery: more data from the securities journal in china, likely to keep the loan prime rate unchanged for july.

today this according to the official chinese securities journal. even if there is a change to the lpr does not mean a shift in monetary policy direction, coming after the rrr cut that surprised analysts thought perhaps it was a shift in the monetary path. next is "bloomberg daybreak: asia." this is bloomberg. ♪ and there you have it -

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back but never realized the experience who be so vivid. >> the satisfaction of your goals being achieved, beyond that what did today symbolize for the company and children present earlier? >> for the children, we have to get building spaceships as fast as we can. one day those kids will have the chance to have a similar experience to what i had. and that we will do. we also launched this giant global raffle so to kids -- 2 kids, $10 for a pair of tickets if they win the raffle they can go up. and hopefully that money will enable people who would never be able to go up to go up to space.

♪ haidi: welcome to "bloomberg daybreak: asia." sophie: we are counting down to asia's major market opens. shery: from bloomberg world headquarters in new york, our top stories this hour, the reopening trade reverses, asian stocks to continue the global selloff as global virus worries feel a rush into havens.