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. i am shery ahn. asian stocks look set to snap a three-day losing streak after investors on wall street buy the dip with cyclicals and small caps driving the rally. the post lockdown hangover

continues for netflix. subscriber forecasts falling in short of wall street estimates. honda hits reverse year on its go it alone strategy as it shifts aggressively to electric vehicles. we hear exclusively from the ceo. see how we are setting up for the asian markets open. sophie: risk assets are on the front foot midweek after the s&p notched the best day since march, led higher bicycles with the index bouncing off its 50 day moving average. we are waiting on exports data from korea as well which could provide a lift and the nikkei could snap a five day decline after entering a correction although there is caution around how rising cases in japan may delay the recovery. benchmark yields closed at one to two with traders assessing if it may be too early to call a bottom on u.s. yields. yep offshore yuan holding below

6.49. the renminbi has been relatively steady which may indicate less worry over the delta variant in china compared to other places like southeast asia. pulling up the chart on the terminal, watching to see if you will see a dip buying today. the regional index below its 200 day moving average which has held for some time since july of last year and we are keeping a close ion chip names as well as sk hynix after the biden administration said they are starting to see signs of relief for the global semiconductor supply chain. haidi. haidi: for more analysis on whether we will see dip buying and bargain-hunting continuing, our guest. david, always great to have you with us. you guys are not fully invested right now. you see more risks than opportunities? david: you know, i think we had the dip, the shock.

there is a fear of the delta variant, and there is the other side, which is we get beyond covid and when we do, we have a worldwide recovery, not just in the u.s. or the developed countries, and we are seeing that tension go on in the markets in the last few days. there is sectors that have problems, haidi. i just saw your interview with halliburton and the interview was tentative. they are not too sure of the long 40 year future anymore of fossil fuels. i thought that was very well handled but it revealed something about the energy sector longer-term. haidi: what does your portfolio look like at the moment? i know the sort of completion of the vaccinations dori is a big piece you are looking out at the moment. david: we are worried about the vaccination rollout. that is a serious thing.

we have 1000 counties in the united states where the vaccination rates are 35% and what we are seeing with the delta variant in the united states is that over 90% of the people who get hospitalized, seriously ill and hospitalized, they have not been vaccinated, and this is a worldwide problem. we don't beat -- the mutation has changed. we do not beat this virus until we get vaccinations rolled out worldwide. shery: i guess those concerns affecting investors. this gtv chart on the bloomberg showing how the outperformance we saw in the value stocks really fading and growth again overtaking value. will this trend continue then? david: i think it is possible. growth has a place if we don't have the slowdown. you know, we are overweight the

health care sector. that's about 14% of the u.s. market, we are about 27 to 28. why? because we think this process of virus and then long-haul illness will roll out worldwide. so the health care sector is what we see. usually, you look at that as a docile, sleepy, dividend oriented sector. i don't think so. the challenges for biotech and pharma and various components of health care, devices, is huge, worldwide, so we put it in the category of potential growth, not just the tech sector. shery: where does that put the dollar? we are seeing this pattern of higher highs and higher lows. david: the worst thing a forecaster can never do is

forecast a currency. it is like flipping a coin only probably the coin is loaded against the forecaster. one would think the dollar, as the world reserve currency, is going to maintain that position. i believe that is the case. then there is a big question about whether the savings in china get released into the world. there was some conversation of that in the last couple of days, 45 to 86 trillion in domestic savings with some of it coming to u.s. dollar assets, with some of it coming into the euro and elsewhere and what would that do to the chinese currency? the currency things are impossible to forecast but they are very real uncertainties with big impacts. shery: right. david kotok, always great having your thoughts, chairman and ceo at cumberland advisors.

we have an alert on the bloomberg right now. tom barrack will remain in custody until his hearing, which is now scheduled for july 26th. remember, he was arrested on charges of illegally lobbying for a foreign government. he was a former top fundraiser for president donald trump. this allegation of illegally lobbying for a foreign government has stuck with several other trump associates so we will be watching these charges very closely. tom barrack will remain in custody until the hearing. he'll get a july 26 bail hearing in this illegal lobbying case. still ahead, the tokyo olympics is set to begin against all odds. we will be hearing -- we will be speaking with economic historian chelsey schneider about the implications for japan's political landscape. blue origin pulls up its first flight to space. we will hear from jeff bezos

about the experience and his plans for unlocking opportunities in the space sector. this is bloomberg. ♪

shery: jeff bezos and three other passengers pulled off blue origin's first crewed flight to space. jeff described the experience to bloomberg's emily chang. emily: welcome back to earth. how do you feel? jeff: really good. emily: this is your first interview since landing. we all want to know the reality of seeing the earth from above. did it live up to the dream? jeff: beyond. i am not talented enough to describe it in words.

it was much more than i expected. it is on's firing. do you have words -- awe inspiring. do you have words? emily: how does this fit into the long-term vision? >> we are building an orbital vehicle in this vehicle, new shepard, we will fly that over and over. it is practice for the orbital mission and it gives people a chance to see what we just saw, which is this fragile and beautiful earth that we cannot imagine. until you see with your own eyes , i don't know. we should send someone who would be better at describing it. it is just this thing that you cannot -- it is one place, no boundaries. no national lines. nothing. the atmosphere -- earth's atmosphere is so big. we live in it. it seems gigantic. when you get up there, it is actually this little thing that

we need to protect. i don't know, for me, it was definitely incredible. >> it was amazing. i was surprised at how easy it was to move around in zero g. >> it felt almost normal, like we were somehow involved to be in zero g, it felt so good. emily: for the people here on earth who are wondering why we are investing so much money into space, how do you think this will benefit us here on earth? >> we are building infrastructure. we are building a road to space so future generations can build the future. we live on this beautiful planet, the most beautiful planet in the solar system by far, and we have to keep it and protect it and the way to do that is to slowly, over decades, to move on heavy industry, all polluting industry out into space. that is what we are going to do so we can keep this planet the gem that it is. we need low cost, reusable spacecraft and we have to practice and that is what this

tourism mission is about. emily: for the kids watching, how do you want us to inspire them? >> kids are -- every kid has so much potential inside of them. i hope that what we are doing a little bit is unlocking that, so for kids everywhere, the way you unlock potential is with inspiration. i was inspired by the apollo astronauts and this is the next phase of commercial space development and i hope that inspires little kids, too. haidi: emily chang speaking with jeff bezos. let's get more on his vision for space. ed ludlow is on the ground in vanhorn, texas. what was it like? obviously, you spoke to richard branson before and after his milestone flights as well. what has been the vibe on the ground? ed: yes, i mean, the mission was executed to perfection.

there was a six minute hold on the launchpad where they were double checking some things. in the whole 11 minutes is fully autonomous and everything happened at exactly when it was supposed to. in the moment, you are there, thinking my goodness, what is happening? what is so astonishing is that the audio from inside the capsule was so clear. there was this moment on the way up where jeff bezos out, "don't forget to look out the window." it was astonishing. you can see the loss of words, to remind them to take a look. we later saw the video and they are doing somersaults, throwing ping-pong balls to each other like it is no big deal but that was the whole basis of this flight, that there is nothing much the crew can do. there are no controls in the capsule. going into this, they felt really confident. one of the chief engineers said he felt it was so safe that he would put his own kids on it. it was over in a flash and

executed to perfection, as i say. shery: over in a flash. how big is the market for people willing to pay hundreds of thousands of dollars for this experience? ed: or more. we don't know if it will be more than hundreds of thousands of dollars. what we are hearing from blue origin is at the fourth member of the crew was supposed to be that auction winner and then he could not go because of a scheduling conflict but there were other bidders in the region of $20 million and blue origin is deciding on the pricing and how they go forward. they are very supply constraint. they have a couple of boosters, a couple of rockets, and one or two capsules. in order to meet demand, they have to hold more of those but what they are clear on is they are willing to put customers out there who are willing to pay the price, whatever it may be. two launches planned for the rest of this year. six launches next year, carrying six people at a time. this was a substantial step. it opens the door for real space

tourism. new origins ambitions are much bigger than a few moments of weightlessness in space. shery: be sure to catch our special report on the business of space as :00 a.m. and on saturday in hong kong. on bloomberg tv and take. for now, let's get to su keenan. su: the biden administration is starting to see signs that the global semiconductor supply shortage is easing. gina raimondo said there's increasing chip supply, brokering a series of meetings between chip manufacturers and customers. senior officials say those meetings alleviated mistrust, translating into gradual relief for automakers. the delta variant now makes up 83% of all covid-19 cases in the u.s., up from 50% at the beginning of the month.

the cdc director made the announcement that a senate hearing and she said areas of the country with limited vaccination coverage are allowing the spread of the highly transmissible variant first identified in india. one day after tokyo announced its top executive would not attend the tokyo olympics opening ceremony, more japanese companies are following suit. senior officials will skip the event, given organizers decide to hold the games without spectators. 70 cases of covid-19 have been linked to the event which will be held during a state of emergency. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: let's take a look at netflix.

shares falling after the company forecast subscriber growth missed expectations. we are also learning more about the plan to include gaming as a core part of the offering. we are seeing downside in recouped a bit. let's get more from our bloomberg intelligence senior analyst. what was overall kind of the takeaway? there were some pretty heavy concerns about the slowdown in the forecasts as to what subscriber numbers and take up look like in the post-covid era. >> i think they definitely, you know, address a lot of those concerns surrounding the subscriber slowdown in the earnings call. the choppiness was a result of that old forward of demand we saw because of covid but then the good news is that they pretty much said that this is the tail end of the choppiness and we should be cycling through that and towards the back half

of this year, we see normalized subscriber growth and that is also when they have a lot of their very big hitting content titles, on the platform so those two forces together what kind of give investors a lot of confidence in the remaining runway for subscriber growth. shery: they still lost domestic viewers for the first time in years. how much will adding games help here? >> it was obviously some elevated turn here in the united -- churn here in the united states and canada. it is a fairly saturated market and there's a lot of competition out here with many, many new entrants. so definitely, i think the introduction of gaming is going to be additive, incremental both from a subscription standpoint as well as from a revenue standpoint. it is kind of strengthening their core offering.

it builds on engagement. it adds to the time spent on the platform, letting them pick up some subscribers on the way, especially since this is a multiyear effort and they will keep expanding into different platforms. they are starting with mobile devices. they will expand to different platforms and expand the market as well. shery: our senior media analysts there. turn to your bloomberg for more on netflix earnings. go to tliv to get commentary and analysis from bloomberg's expert editors. this is bloomberg. ♪

shery: former trump ally and a capital founder has been charged

of illegally lobbying for the united arab emirates. prosecutors say he unlawfully influenced the former president's positions to advance the uae. erik schatzker spoke to him about his time in the trump campaign before his arrest. >> from my humble beginnings of where i came to have the gift an opportunity to be next to a president of the united states and have the honor of running in inauguration to be up close and personal on some issues that affect the world order, i paid a personal price for it. the adversarialness of america and squaring off on both sides to something i still do not understand. shery: he joins us now with more on this. tom will remain in federal

custody. tell us a little bit about the deep connections that tom barrack had not only to the trump campaign but also to the uae. erik: -- erik: and it is so important to point that out because trump's connections to the uae have as much to do if not more so with his business and thus to do with the trump presidency. the indictment makes it quite clear from the perspective of the justice department that trump, the candidate, from, the president-elect, and trump, the president, was the victim here, and tom barrack was, according to the allegations, using his relationships in advancing the interests of the united arab emirates. those relationships he has with the uae go back decades. he was a young lawyer in saudi arabia in the 1970's and that is

how he got to know some of the leaders of the region. they became the grandfathers on the fathers of the current leaders. in a conversation i had with him last week, he referred to mohamed inside -- he referred to the crown prince of abu dhabi as one of the greatest leaders the world has ever had. the degree to which he is friendly with them and is willing to complement them is quite obvious there. shery: it is very striking. the indictment does not make it clear what the motivation was in that case. is it personal? is it personal business interests? erik: one can only jump to conclusions without any evidence to back them up but those conclusions would be just that. that it was for the sake of personal business and ongoing relationships which fuel that

business. for decades, ever since he started his capital company and possibly before, tom barrack has been able to tap middle eastern sovereign and family wealth to fund his investments and as we all will know, when you do business with people over the course of decades, those business relationships turn into friendships and sometimes, it is very hard to distinguish between the two. the lines get blurred. i am almost certain, having spent as much time with tom barrack as i have over the years, that that is the blurring of those lines. haidi: erik schatzker with a unique perspective on this developing story. let's get you a quick check of the latest business flash headlines. deutsche bank leasing paper investment banking analysts, joining us wall street rivals. we are told that analysts will

be paid 100,000 dollars while those in their second year will get $5,000 more than that. u.s. analysts will see their pay rise to $150,000. jp morgan executives have defended the long hours worked by a junior bankers on wall street. the ceo of the asset and wealth management business said that the intent means that people master the job quicker. hours have been a focus in response to junior bankers concerns about their physical and mental health. the credit suisse exodus matches up 30 defections. another four have quit. a financial institution -- -- will be cfo. another is headed to bank of america. these latest departures come in

the aftermath of scandals. plenty more to come here on "daybreak asia" as we count down to the start of trading. this is bloomberg. ♪

haidi: honda became the first japanese automaker to publicly say it will go all electric by 20 or t. -- 2040. the ceo told bloomberg exclusively how the company is positioning itself among its chinese rivals and tesla in the ev markets and how it plans to achieve its carbon neutral target. >> [speaking japanese] >> our ultimate goal is to achieve complete carbon neutrality by 2050. in order to hit that target, we

must make our new cars all non-gasoline by 2040. we pride ourselves in our engines but we are now focused on our new target. we are putting our resources into ev fuel cell technologies. i realize that u.s. and european carmakers are leading the way in the global ev and fuel-cell markets but we still have time. we are well-positioned to compete with our arrivals as we can choose the best ways to achieve our goals. >> when you look at other global auto giants, do you think honda's goal of going all electric by 2040 is early enough? >> earlier targets were set by the e.u. and other countries after we set our target to be carbon neutral by 2050. we may have to reconsider our target if we have to achieve it earlier but for now, we intend to stick with our scenario for the 2050 carbon neutrality target. >> honda has a partnership with gm to make electric cars and plans to rollout two new models, which have battery platforms in

2024. can you give us an overview on how you plan to use the partnership? >> we are discussing the possibility of alliance is in any areas. general motors leads in larger electric vehicles so that is where gm takes the initiative. as for smaller ev's, honda takes the initiative. nothing has been decided yet but we are in talks with all kinds of scenarios and hope to benefit each other. >> you have shown a pretty open attitude towards forming alliances to ride out the auto industry's once-in-a-lifetime shift towards next-generation cars. what kind of new alliances are you seeking to further strengthen honda's position in the global market? >> no specific names of companies in mind because we still want to discuss from different companies -- with different companies from different areas. we can create new value by

automotive and entertainment coming together. >> are you talking to any i.t. giants like google or apple? >> we are not in talks with companies that we can name here specifically. shery: the president and ceo of honda speaking to our reporter. honda is one of those automakers who has been impacted by the chip shortage so we will be watching how they trade at the open in japan and south korea. we saw automakers in the u.s. session gaining ground after we heard from the biden administration senior official saying that we are seeing signs of relief when it comes to that chip shortage and goldman sachs had already said that perhaps a chip shortage would peak in the second quarter and that in july, we would see auto production jumping. we still have not seen that and we have seen the chip shortage taking $110 billion toll on the broader industry. we will be watching chipmakers of course because we have seen those gains in the u.s. session as well. we are talking about gains for

the philadelphia semiconductor index. the commerce secretary has been speaking with automakers so we will see if that has an impact on today's prices. he saw the downward pressure in the last session. given the broader selloff, we will be waiting for the open, haidi. haidi: we are counting down to the olympics opening ceremony with some events getting started today. the organizers have reported a total of 71 covid cases linked to the event as we count down to friday's big open. our deputy bureau chief, sophie jackman, visits us now. there is increasing speculation that perhaps the big event will not be so spectacular after all. sophie: 71 positive cases linked to the olympics since july 2. it sounds like a big number but we should have some perspective on what that number means. organizers are obligated to

report any positive cases and everyone who is under their purview, at least to staff to volunteers to contractors. of these 71 cases, only a handful who are athletes. the majority are contractors, some of whom will have no contact with the athletes at all. some of them are not here in the capital. when it comes to how each of those groups under the tokyo 2020 purview are supposed to be isolated and cap from each other and kept safe and regularly tested, there is a labyrinth of rules about how to do this in the playbooks, decided and released by the olympic organizers. as we just count down with days to go until the opening ceremony, the test is how can these concentric rings of protection around the athletes keep the virus from spreading in areas like the athletes village, where we have had a couple of positive cases? shery: what are we seeing in the broader japanese economy, given that this is a fantasy olympics?

-- fan free olympics? these hotels must not be getting any of the boost they were expecting from the games. sophie: it is rough. no spectators even from here in japan. anyone with a ticket will be getting it refunded so that revenue stream is stopped. it is not legally enforceable. anyone in hospitality or hotels hoping for a windfall from this is going to have a hard time. we are really looking to the central government and what kind of stimulus they could possibly put out ahead of the general elections in just a couple of months. economists have had various estimates. it could be $30 trillion in the supplementary budget so that is exactly what we are watching for. as soon as the olympic torch fades away and just a couple of weeks. shery: sophie jackman there.

we have an alert on the bloomberg right now. we are getting south korea's trade numbers for the first 20 days of this month. we have gotten the numbers right now, rising 32.8% year on year. this coming out a time when we continue to see very strong external demand supporting the south korean economy despite the fact that they are still struggling with virus cases remaining above 1000. the momentum for south korean exporters continues. we have seen double-digit gains for the past four months in south korea. in june, a gain of 40%. more than 40% for may and april. the first 20 days of this month, exports rising 32.8% on year according to them. let's turn back to the olympics because prime minister yoshihide suga's popularity has dropped 8.1 points to 39.5 percent while

the disapproval rate reached nearly 50%. the olympics has to come off without a hitch. let's bring in chelsea, associate professor. great to have you with us. what would be olympics without a hitch look like at a time when we are already seeing fan free olympics and athletes being infected? >> usually come often come in many other places, even if there has not been a lot of public support the olympics, once they begin, it is a big celebration, and people become very excited about it. but in this case, we are in a state of emergency in tokyo and it is the fourth one following very quickly on the third one. people are very tired of this. they are very anxious. we are seeing case numbers rise. we are seeing a very slow vaccination rollout. and i think that the -- the

olympics, if it seems to add any sort of risk on that already very stressful situation, it could be a political disaster. shery: the 1964 tokyo summer olympics, we they were a historic moment for the country, a turn for modernization in japan, raising living standards for all japanese across the country. what will be the legacy of this one? >> it is rather hard to say now. there was a lot of hopes around this olympic games that it would be able to be a recovery of empirics. initially, that was sold as a recovery to the march 11, 2011 triple disaster. the earthquake, tsunami, and fukushima nuclear disaster in the northeast region. however, we now find ourselves in another disaster and we may

also find ourselves in one of the hottest summers tokyo has ever seen. the 1964 olympics were held in october but because of current broadcasting schedule, the summer olympics has to be held at this moment and it is incredibly hot in tokyo right now and getting hotter each year. it is very difficult to understand with the legacy of the olympics will be so far. we will have to see if the bubble. -- the bubble remains a bubble and if the weather calms down or not. haidi: what is really cooling down is the approval rating the cabinet falling to record lows. how high are the political stakes. if this gets pulled off with, i guess, the same level of infections but not necessarily a super-spreader event, i guess that is some measure of success. does that guarantee success if

they call that snap election? chelsea: i think that is hard to say. one key feature of the suga cabinet is that there has been a lot of vacillation, rapid changes, and there has not been really great communication. and i say this not just as an observer but also as a resident, as someone who has tried to sort out how to be vaccinated or how we can apply for a vaccine passport. there does not seem to be a great amount of communication. there has not been a lot of communication about, you know, the benefits of vaccination for the public and also a lot of vacillation around do the olympics have spectators, no spectators, can they serve alcohol or not? i think the suga cabinet really will have to pull off the olympics, make sure the state of emergency ends on a schedule, proceed with events nation rollout, and then also improve

their guidance and communication. haidi: how crucial is the vaccination rollout speeding up? we are getting lines saying japan has given just shy of 72 million cobit doses, about 22 .3% of the population fully vaccinated. it is obviously not great when compared to other developed economies. it is better than some including here in australia. right? chelsea: yes, well, i think something that has been very confusing is the way that the rollout has been sort of patchwork situation and often very much left up to local governments but not with a lot of support from the central government. also, recently, large businesses as well as large universities have been able to apply to the vaccination drives with their

members as well but this also relates a kind of vaccine inequality that people who are affiliated -- but even those plans have been canceled and then reinstated because of what seems to be a logistical difficulty in getting the vaccines that are needed to the places where they are needed. shery: vaccine inequality is a problem worldwide. associate professor. thank you very much for your time. we are counting down to the start of trade in tokyo and seoul. these are some of the stories we are watching. in japan, an exciting race is shaping up among food delivery startups. we will be watching softbank after it made a bet just ahead of its rivals listing. we will also be watching the boj. their outright bond purchases

will be underway today. plus, more eco-data coming up. june trade numbers are due out shortly. in south korea, we already had some -- a peak of those trade numbers. we are watching at the bottom of the hour but yonhap said exports were rising. local media saying that a company could be delaying its ipo for the fourth quarter. the company has been asked to revise the prospectus for its listings. plus the reports of daily covid cases could be reaching a daily record of about 1800, so really, those virus concerns are continuing. haidi: coming up next, we get to the bloomberg scoop. bhp considering an exit from its oil and gas business. we will get more on that. this is bloomberg. ♪

su: this is "daybreak asia." we start with tom barrack. he will remain in custody until a july 26 bail hearing after his arrest on charges of acting as an unregistered agent of a foreign government. the 74-year-old was arrested in california and accused of illegally lobbying for the

united arab emirates, or uae. tom barrack is a former top fundraiser for donald trump. a spokesperson says tom barrack is not guilty and will be entering a plea of not guilty. about 100 thousand people have been relocated from the capital of central china's -- province after a record rainfall led to widespread flooding and 12 deaths. 45 centimeters of rain fell over a 24 hour period. that is the most since records began for the city. it is a major producer of agricultural products and machinery. and the major area is home to a large factory. to hong kong, lawmakers will debate giving the government greater power to punish so-called doxxing offenses. a big tech coalition says it

could affect their ability to provide services. they will discuss creating two types of offenses punishable by up to five years in prison. last month, companies including facebook, google, and twitter detailed objections to the new rules. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: we have south korea's first trade data coming out at the moment for the month of july. exports rising 32.8% year on year. we are seeing imports rise in just over 46% year on year. exports are clearly seeing that very strong growth. chipped exports rising 33.9% year on year. this has been such a boon when it comes to south korean exports and we heard earlier from the biden administration saying they are starting to be signs of relief for the global semiconductor supply shortage

including commitments from manufacturers to make more chips for car companies. we are seeing exports to china rising 18.6%. exports rising almost 89% as bob. another -- those are the robust trade numbers and the strength we have seen in global trade has been one of the most dominant parts of the post-pandemic recovery. let's take a look at how we are setting up this midweek session for the markets. are we going to see some bargain hunters in the asian session? sophie: potentially we could see some dip buying after the regional index in asia fell below the moving day average. we had a guest earlier taking note of the halliburton ceo appearing unsure about the future of fossil fuels. and bhp is considering potentially exiting the oil and gas business. we are watching bhp shares on that. goldman lifted its view on bhp

shares to 57.70 australian dollars. pulling up the chart on the terminal, our colleagues are highlighting the potential upside for clean energy stocks. falling oil prices and treasury yields may cement that shift by investors which we are seeing -- etf flows. blackrock picking up energy holdings with parabolic growth illustrated by the white line right here on the chart. etf investors are dumping oil and gas producers. haidi. haidi: we do have breaking news right now out of japan. we are getting those trade numbers. the june exports rising 48.6% year on year which is a beach on estimates of a gain of around 46%. when it comes to the imports numbers, also a gain of 32.7%,

beating expectations and that leaves a trade surplus at 383.2 billion yen which is lightly smaller than expected. of course, we have a stronger import, not surprising that we have seen those gains in the energy bill boosting those import costs. those exports to china rising more than 27%, to the u.s., rising 85.5% year on year so you can see the external demand really helping the japanese recovery when it comes to those trade numbers as well. haidi: and that comes on the back of those really strong south korean 20 day numbers as well, showing that the global trade recovery continues on foot even if the vaccination rollout for delta is making other indicators shaky. we are getting the bank of japan meeting minutes from its june policy meeting, saying members

agreed not to hesitate to add easing if needed. so clearly, they are saying it is vital to keep the markets stable with the state of emergency. it has been difficult to see a way out even as other central banks show signs of starting to ten. let's get to that bloomberg scoop. bhp is considering getting out of the oil and gas business and that that exit could be worth $15 billion or more. they want to exit while it can still get a good price. for more, let's bring in james. the market that mimics when it comes to -- dynamics is why they are looking to strike while prices are hot. james: good morning. that is right. bhp has been at least considering looking for a buyer for these assets for quite some time. with the onset of cobit last year, oil and gas prices could -- the initial part of that.

but we have brent around $70 a barrel so it's looking like a more attractive proposition. longer-term, as you mentioned, bhp is looking to downsize its exposure to fossil fuels that made public the fact that they would like to get out of coal. glencore and columbia selling an asset and they are looking to sell some of their australian coal asset also so it would be in the line with that strategy to move out of fossil fuels. shery: you mentioned the collapse in oil prices really being an issue. now that prices seem to have stabilized, what could be the next obstacles? james: it goes back to what i was just saying about investors being far more attuned to esg issues and the need for all possible fuel companies to be transparent about their greenhouse gas emissions and also give detailed plans about

how they plan to reduce that footprint as part of the global push to net zero by 2050. what that has the effect of doing is some of the global energy -- they are under pressure from investors to do that so it makes it difficult for them to justify really huge acquisitions of new fossil fuel assets, potentially removing them from this process. looking at private players who have got -- may be gotten us investors on their backs so you are sort of lowering the pool a little bit of investors who might want to buy these assets. shery: james thornhill there. we will have plenty more to come on daybreak. this is bloomberg. ♪

haidi: let's take a look at how we are setting up this midweek, looking ahead to asian investors also snapping three days of regional declines on profit taking. we saw dip buying in the u.s. session on the back of that recovery. the biggest advance since march. some of the anxiety when it comes to the economic impact of the virus seemingly easing. we saw yields rising on treasuries as well, shery. shery: not surprising we are seeing those flows into bonds. coming up, asia's fixed income markets with a portfolio

manager. plus, we will get more insights on equity markets as well. this is bloomberg. ♪ and there you have it -

wireless on the fastest, most reliable network. wow! big deal! we get unlimited for just $30 bucks. i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax people, my wireless is crushing it. okay, that's because you all have xfinity mobile. it's wireless so good, it keeps one upping itself. so many people are overweight now, and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours.

>> you see the evolution of fintech. do you think finance is becoming truly democratized at the moment? is it the fact that we are still having a discussion about whether you can get into ipo's or example? -- for example? >> there is always going to be traffic. but there are many brands helping the banked a -- unbanked and underbanked. that is not really our target

audience. we want to offer great advice to everyone but i think there are a lot of other people going after that marketplace. i am sure that you are right. in cases like private investing, there are still pockets of the market where you have to be in the know. >> welcome to daybreak asia. i am shery ahn in new york. >> i am sophie kamaruddin in hong kong. >> i am haidi stroud-watts in city. our top stories this hour, asian stocks placed to start a three-day losing streak after investors on wall street see small caps driving the rally. investors are put on edge as

shares and bonds find a new low. fears of market contagion. we discussed who the big stock winners and losers will be in tokyo's stay-at-home a liv-ex. two the markets -- olympics. to the markets. we are anticipating some bargain-hunting. >> the nikkei and the topix are jumping more than 1%, bringing the nikkei back from correction territory. morgan stanley cautioning of a delayed recovery in earnings and growth in japan. vaccinations are increasing their with more than 23% of the population fully vaccinated. we see the yen holding below 110. we also have flash trade numbers from south korea, switching the board for the first 20 days. we saw experts -- exports dropping. the kospi half a percent higher. we will also have chip stocks

today. we have samsung electronics rising ever so slightly as the biden administration is seeing somebody for the global semiconductor supply shortage. earnings on tap in south korea. over in australia, switching up the board, checking on the open in sydney. the asx 200 getting a third of a percent. the group is considering exiting its oil and gas business. that is where we are watching that stock. the aussie dollar creeping higher after a four-day drop. bonds are under pressure. economists consider the rba tapering trajectory. they see the rba sticking through early september. the rate are being dialed back. that is taking a breather. you have the text treasury staying above that 122 level on the 10 year yield. u.s. futures sticking higher since march.

>> the reopening trade making a comeback with the single stocks rebounding in the u.s. session. our next guest says he still sees positive profit alert in some cyclical stocks across asia. let's bring in can -- ken wong, an asian equity portfolio specialist at eastspring investments hong kong ltd. ken: we are seeing positive earnings surprises come out and financials. we are seeing some of that happen in places like south korea as well as taiwan and taiwan as well. during the first half of the year, cyclical stocks have started to outperform. it is one of those situations where we will closely monitor the situation. >> how long will it take for us to see these flowers -- virus

infections spreading? ken: if we do get further lockdowns, if we do have the economy shutting down again, that will have a deep impact. when we look at what is said and what was happening, there is some skepticism in terms of what is likely to happen but overall we think that right now because of what we are seeing over the past couple of weeks of so -- or so, investors are taking a bit of profit off the table. there is a bit more skepticism about whether that whole growth story continues during the second half of 2021. >> how much is the recovery story baked into earnings? ken: it partially is. earnings season is coming up. over the next month or so or six weeks, we will see a lot of earnings announcements but what i think will be more important is not the earnings that have

already happened during the first half of the year but guidance. the fact is with this delta variant and specifically whether or not companies need to cut back on some of their expansions, looking at the overall and what will happen in 2022, those are things we are looking out for much more closely. overall, when we look at china, we see that cyclical, we look at financials. they have positive earnings surprises. we have seen how specifically tech stocks have already had roughly around 20% decline when it comes to earnings expectations for the share. >> in terms of those names, tencent, baba, what you need to see in the earnings relief that makes it a buy for you? >> the valuations are a bit more attractive as we speak. we are in that situation where we are looking at 2022. consents -- consensus estimates are here. valuations looking a lot more attractive.

from both value investing, growth investing, it does look more attractive. specifically, we want to see where earnings comes in from the first half of the year. specifically, if there are any comments made in regards to potential the any of the regulations that could have an impact on the overall earnings and in particular, also the overall spend on their for the coming year. -- the capex for the coming year. su: we are going to start with the latest on the delta variant. it now makes up 83% of all covid-19 cases in the u.s.. that is up from 50% at the beginning of the month. the centers for disease control's leader made the announcement in a senate hearing. she said areas of the country with limited vaccination coverage are allowing the spread of the highly transmittable variant which was first identified in india.

the biden administration said it is joining the seaside of the -- gina raimondo has led white house efforts on increasing chip supply both during a series of meetings between chip manufacturers, suppliers and customers. seeing officials say those meetings only added to mistrust, translating into fragile belief for automakers. u.s. climate envoy, john kerry is calling on china to step up if -- step up its efforts to reduce carbon emissions. without this, it is limiting global warming to 1.5 degrees celsius and that is essentially impossible. this is the on the way to avoid what he calls the world's current mutual suicide pact. and bhp is considering getting out of oil and gas in a

multibillion-dollar exit that would accelerate its retreat from fossil fuels. sources tell bloomberg the mining giant is reviewing his petroleum business. the business could be worth 15 billion more. we are told the hp is getting stuck with assets that may become more difficult to sell. double news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan, this is bloomberg. >> we will have more on china's credit outlook and risk and more on ever grande. first, blue origin. its first cruise mission to space with jeff bezos on board. here what he has to say after he touched down and what this means for the future of space tourism next, this is bloomberg.

♪

>> the world's bridget person, jeff bezos and three other astronauts have landed safely after blue origin's first passenger flight to space. the flight lasted about 10 minutes. the effort is to make space tourism viable. >> it is just this thing. it is just one place. there are no boundaries, no national lines, nothing. this atmosphere is so big. we live in it. it seems gigantic but when you get up there, it is actually this teensy little thing we need to protect. for me, it was definitely incredible. >> let's get more on bezos's

vision. ed, it went off without a hitch. what now? >> this was a big step for the company but it has been a long time in the making. he founded the company and 2000. the progress has been slow. blue origin has fallen behind spacex in a big way when it comes to commercializing space. i think jeff bezos realizes that. in the longer interview he did with, lake -- emily, he said they need to take the next step from near space to orbital space. they are appealing nasa's decision to award the contract to spacex. jeff bezos documents how driven jeff bezos was by spacex pulling away. there was competition -- there was recognition of that petition

and ambition in today's interview. >> how did this exhibition go for jeff bezos? the excitement was everywhere. >> very similar to virgin galactic. it was a successful marketing exercise. they wanted to demonstrate to future paying customers that the technology was safe. who better to do that down the world's richest man who is funding the whole project? it gives them a springboard forward. they have their regulator licensed to take paying customers up to space. they can do two more this year. the companies say maybe six next year. it is not clear how long it will take them to even break even. despite generating revenue. they also have 70 other projects in the work. i will put that facility 30 miles over my left shoulder. they are testing engines. they are building this next generation new glenn rocket which is really behind schedule. they have catching up to do in other areas. >> ed will be hosting a special

report on the business of space along with alex field. that is on saturday at 7:00 p.m. let's get a quick check of the latest business flash headlines. deutsche bank is boosting pay for investment banking analysts. joining is wall street rival as they translate to heavier workload. we are told that the advisory arms will now be paid $100,000. those in their second year will get 5000 more than that. it was analysts promoted to the associate level. the pay rise will go to 150,000 hours. the jp morgan executive -- the ceo of the bank's asset told bloomberg the intense workload means people can master the job quicker. they have been in focus during the pandemic in response to the junior banker concern about their's go and mental health --

physical-- their physical and mental health. >> if everyone has a regular eight hour a day job five days a week, it will take you about five days -- five years to have a base level mastery. on wall street, it is about 12 hours a day, six days a week. >> sources tell us another has cleared. david no wish -- david is going to morgan stanley. these latest departures coming in the aftermath. >> let's talk a little bit about one of the titans of the banking industry, jamie dimon. anytime you ask jamie dimon when he will be retiring, he keeps

saying five years no matter when you ask him. he may be lured into staying a little bit longer because we are hearing he has been awarded $1.5 million stock appreciation. he can capture the prophet in the space for five more years. >> there is a huge amount of speculation for a long time now. he was sidelined for a month last year, undergoing emergency heart surgery. this is fresh out of the biggest leadership shakeup. at the front of the race to take over the top jobs. they may be waiting a limit longer. these women that are in line to eventually replace him but the board saying the special award affects the board desire to continue leading the firm for a significant number of years. we might be asking and getting told five more years for five more years from now. >> how can you be enticed with

millions of dollars when you already have a fortune of $2.1 million? it is so astronomical. a few million does not make a big difference. we will see what he says next. plenty more to come on daybreak asia. this is bloomberg. ♪

>> tokyo's delayed olympics is flipping conventional wisdom on its head. bloomberg stoxx reporter joins us now. not surprising given the rise in infection. >> right. this of the base will be very different from those of the pas t. just like kelly said, because of the pandemic.

no spectators will be allowed for the other picks. -- elliptic. it has been a big letdown -- allowed for the olympics. that has been a big letdown for all of the companies involved. advertisers, real estate firms and travel operators, this time, the investor interest won't be too much around this company's but more on the so-called stay-at-home stocks like food delivery companies and also, electronic firms that make and sell tv's. everybody will be watching the games at home through tv's. >> what about the medal tally? how does that affect the winners and losers on the stock market? >> i think a view is a little bit split on that aspect because some analysts would say more

gold medalist would be positive, create a positive sentiment for japanese equities and create buying momentum. on the other hand, there are also analysts who say that because the games are very unusual, -- it is not the usual equation of more gold medals leading to more buying. that won't be the case this time because everybody is so worried about the pandemic and how the delta virus will be impacting the economy and whatnot. instead of focusing on the elliptic's --olympics itself, they say this might change the pandemic situation in japan and how that turns out, we will have more implications -- how that turns out, it will have more implications for japanese stocks but we have to see how inns

rollout throughout the games and how this all -- things roll out throughout the games and how this impacts it all. >> that was our tokyo stoxx reporter with our take on the tokyo olympics. bhp is seeing some modest upside. i think that is the modest move to the upside. a bloomberg scoop here, bhp group is considering getting out of its oil and gas assets. it would be a multibillion-dollar is it that would accelerate the retreat from fossil fuels. we are being told that could be worth an estimated $15 billion or more. these energy assets making it a bit of an outlier among the world's biggest miners. they have exited some of the similar assets. shery, look at the share price. it could be because it lifted

ironwork shipment to china. that demand still looking pretty steady. >> allies when it comes to the commodity markets. what happens --all eyes on the commodity markets. let's stick with energy. halliburton is tearing up for several years of expansion in the u.s. and abroad -- gearing up for several years of expansion in the u.s. and abroad. jeff miller was speaking exclusively with bloomberg. >> just because the back row is so strong, meaning demand returns over time, clearly it will return. we are at 98 million barrels today and the economy feels more than 2% shut in. the demand growth is there. underinvestment has been a feature for the last five or six years internationally.

it will require a lot of services as we meet local demand for oil and gas. that is why the price bouncing around, what is a good price? the supportive price. 60's, 70's? that is a good range. all of our clients are successfully in that range. that will allow our outlook to unfold. >> when do you estimate that you actually start getting pricing power? let's start in north america. >> it is in negotiation all the time. i would say we are negotiating up as opposed to down right now. we have a unique set of agreement at halliburton. we have the largest inventory of esg friendly equipment. that is sold out completely. we are able to have much more constructive discussions around that pricing for equipment of that nature.

for the rest of the world, that tends to take place as we see the broader recovery unfold. there is a bit of covid disruption in the world today. if that works out and we see activity pick up, i expect over the next few quarters we start to see some pricing traction internationally. >> for international activity, if shale would be more price responsive, is international more sticky? are you seeing longer-term investments? >> what we are seeing more so internationally, i described them as short cycle. we don't see the 40 year greenfield multibillion-dollar investment. we see a lot more of producing barrels more quickly. i think we will see that focus more with national cap needs

around the world. maybe we would have seen -- eight years ago, we would have seen a lot of money spent on info structure. today -- infrastructure. that is much better for halliburton. >> do you feel that you have more pricing power internationally? >> i feel that we will gain power over time. we will let it play out. the pricing power returns generally in small, select markets before it becomes broad. we feel a large, tender pipeline. we have a lot of opportunity. we see the tool order books filling up. big tenders, large tenders tend to be very competitive. what they also do is soak up a lot of commit -- equipment and capacity. for halliburton, i have been very clear that we are focused on probable growth. that means we are making profit and we are growing. soaking up capacity internationally in my view helps

us in that direction. >> let's look on engine markets right now. we are seeing brought upside with asian stocks seeing the best day in about a week. the kospi reversing yesterday. this is one of the best performers across asia. those retail traders. the ad traders are providing support. we have seen so many companies listing in south korea. regulators seem to be getting a little bit skeptical now. >> this comes amid what has been a blockbuster year. we are seeing one of the market leaders when it comes to the interest in korean ipos. this is the biggest online payment service in korea being asked to revise it for the upcoming ipos. this crackdown we have been talking about when it comes to u.s. listings of chinese companies as well as at home seems to be a broader theme. >> we will be watching what

happens in the korean market with those ipos. we will have pointed more to come on daybreak. 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 ♪

>> we launched a giant global raffle, $10 for a pair of tickets. if they win, they can go up. that money will hopefully enable many people to go up who could never have dreamt of going to space.

>> shares and bonds of the world's most indebted developer felt a new lows. the fall in other junk rated chinese borrowers, property stocks, and faang stocks. this gtv stock on the bloombergn when it comes to ever grant -- evergrande stocks and bonds. >> some dollar bonds trading at record lows and the stock

falling almost 30% in two days. it has circulated after news over the weekend that banks had frozen a deposit, $220 million deposits. a city government in china imposed a sales ban on the company, saying ever grant -- evergrande did not have enough funds in its escrow account. the concern is it is not selling its assets fast enough and camp raise cash to plug in a $330 billion hole it needs to replay. funding pressure is increasing at stocks also plunging far below book value. it can't raise cash in global markets. >> also a concern this is the start of a broader contagion in the markets.

>> the concern is even though these are small cash amounts, creditors -- other creditors could follow suit and that the government in beijing is not supporting ever grant -- evergrande like it did in past crises. ever grant -- evergrande have survived other crises. as we have seen shares of property developers in china and hong kong, contagion is spreading. this is a sector being targeted by beijing's deleveraging campaign, part of xi jinping's push to reduce debt in the financial system. ever grant -- evergrande is one of the biggest players.

any international portfolio that holds that debt is going to want to rethink, what is the risk of investing in this space? >> what are some of the signals from the chinese government when it comes to support from such companies? >> not much clarity yet. we know officials did talk to evergrande in late june, asking the billionaire founder to resolve debt issues as quickly as possible. the three red lines that developers need to reach in terms of debt levels and leverage is really something that xi jinping will want to push. the property sector is a huge part of china's gdp, so when that is over levered and you have a slowing economy, that poses a huge risk to the financial system and risks

destabilizing china's economic growth, something the government will not want. evergrande does have a shareholders meeting scheduled for tuesday, july 27, and the expectation is it will discuss special dividends. shareholders were happy about that friday, but the concern is it does not have cash for a cash dividend. we will wait to see how it does that. will there be a shared distribution in another of its units? >> it is appealing for foreign investors, especially those hunting for yield. >> we are seeing more and flows, credit, but also bonds. the government bond yield was at 3%, even though it fell significantly after the rrr cut by the pboc. the onshore market still offers a lot higher returns in a world

where you are seeing a huge trunk of the bond market yielding less than zero. on the property developers side, investors still want to take part in this space. the question is whether beijing testing this market, how far it will take that test? the moral hazard it is trying to remove from that space. will that destabilize the dollar bond market and risk seeing more onshore defaults as well? >> sofia, our chief chinese correspondent. we have breaking news. south korea, the daily coronavirus case numbers have hit another record of 1784. cases have remained elevated above the 1000 threshold we have

seen. the korean won fell to a nine-month low. we are seeing upside today against the u.s. dollar, but risks continue around the coronavirus outbreak across asia and the world. it is these concerns over the coronavirus infections, the new delta variant, that we have seen more investors flocking into bonds instead of equities when it comes to the emerging-market space. we are talking about 11 straight months of inflows into em bonds. haidi: that is the longest winning streak since 2018. you have to go back to november, the last time we saw equities attracting more inflows than bonds. if the delta variant is why we are seeing investors flocking to emerging market bonds, that is set to continue.

they are preferring high-yield bonds like russia, columbia, turkey. let's look at china because there is a blip. china's evergrande local and offshore bonds seeking to an all-time low. the liquidity crisis at the world's most indebted developer is stoking investor concerns over possible contagion risks. how much credit contagion risk is there as a result of evergrande? >> although we can't comment on specific company names, the overall sector has come into pressure. this has been reflected in global risk sentiment, so it is not unique to china property. you look at other em credit

spreads, there is a lot going on. in terms of the contagion effects, there is some, but for the property segments when you look at the industry as a whole, even the largest market developers tend to be below 5% market share. china is a big place, so there is a degree of diversification on a provincial basis. under various scenarios, although you can say there is a line -- a headline degree of contagion, that is commensurate to a degree of value contagion we are seeing in spreads. it cannot fall based on one company. >> let me take you to our question of the day because this talks about whether the china credit risk will become global.

is there debate on whether it can be isolated? talking about emerging markets, china sits to the side with its own idiosyncratic qualities. >> i think the story on the china side is important. from investor context, what's driving the risk off is the delta variant. it is becoming quite severe overall. specific to china policy, deleveraging has been a theme over the past two to three years already. the idea is -- as you know, it does include a degree of property developers. it includes tightening other government bonds and other things. they do want to continue on the deleveraging theme.

you have already seen -- the idea isn't to encourage broad re-leveraging, but to avoid any systemic crises that may occur if they deleverage too quickly. the mls rollover provides a degree of assurance from that perspective. haidi: what happens to other economies where we are seeing inflation concerns play out as we have the delta variant spreading and central banks starting to tighten? >> i think within this question, and especially for asia, you may have noticed we have seen a rather sharp degree of rally recently. i think this comes on the back of a very big surge. these waves, the case count is

somewhat higher. that has spurred selective lockdowns in some countries. that usually does impair gdp growth substantially. the message within this is there is a degree of inflation, but it is transitory and manageable. number two, the decline is causing a degree of rally. you need to look at -- invest into the central banks to have degrees of rome. -- of room. >> on the side of corporate credit, where do you go to hedge for covid risks? >> overall for us, our view is tech and utilities remain key

trades from a credit context. i think tax speaks for itself. the longer you are locked down, the more technology you use. utilities remain a mainstay. infrastructure for asian countries and china are very relevant as a secular theme as well. shery: great to have your insights, portfolio manager for asian fixed and set. we continue to see this brought rally across asia. sophie: we are seeing asian stocks snap a three day drop. industrials and materials leading gains this morning, the nikkei rebounding more than 1% after entering correction yesterday that head a long weekend. the korean won leading forex gains this morning. the latest case count hit a

record in south korea. we are seeing prices take lower, wti off .4%, red below $70 a barrel. u.s. stockpiles consider the delta impact on demand. let's check stock movers of note. hugo sliding. samsung said it is no longer considering a bid for a controlling stake. we are seeing retail operator woolworths hitting a fresh record high ahead of retail sales data. we have seen some swings for the stock after a june trading update in which the online retailer did narrow its retail guidance. indicative of sluggish demand amid the lockdown in australia. haidi: next, indonesia may begin to ease curbs while singapore

tightens them. we will get you the latest. this is bloomberg. ♪

>> this is "daybreak: asia." we start with colony capital's founder tom barrett. he will remain in custody until

a july 26 bail hearing after his arrest on charges of acting as an unregistered agent for a foreign government. the 74-year-old was accused of illegally lobbying for the uae. he is a former top fundraiser for president donald trump. a spokesperson says he is not guilty and will be entering a plea of not guilty. 100,000 people have been relocated from the capital of china's henan province after record rainfall led to widespread flooding and at least 12 deaths. about 45 centimeters of rain fell over a 24 hour period, the most since records began. hunan is a major producer of agricultural products and machinery and is home to a large foxconn factory. more japanese companies are distancing themselves from the other fx after tokyo announced

its top executive will not be attending the opening ceremony. senior officials will skip the event after organizers decided to hold the games without spectators. more than 70 cases of covid-19 have been linked to the olympics, which will be held during a state of emergency. 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'm su keenan. this is bloomberg. shery: indonesia has extended emergency curbs on people's movements for another week while sending a plan to gradually ease restrictions. that follows a decline in cases and hospital bed occupancy. rachel chang leads our asian consumer health care team. how bad is the situation in indonesia? rachel: very bad.

pretty much the worst in the world. also because vaccination is so low, less than 10% of the population is covered. fatalities really shoot up. you have about 1200 people dying every day and that number is going to rise. you usually see fatalities follow infection surges by two to four weeks, so you are going to see fatalities get worse, especially because hospitals are overwhelmed. we are hearing things that are familiar from the india situation a few months ago, oxygen running out, people dying on the street. it is a very bad situation. haidi: in singapore, we have seen so many delays to this reopening plan. the plan to take the reopening of the economy to the vaccination drive has hit a

stumbling block now. rachel: it is an interesting contrast. you have indonesia talking about using curbs in a week. singapore has gone back into near lockdown conditions. cases have risen, but you are talking about triple digits. barely anyone has died, not many people in critical condition. it is worryingly relaxed. governments are all over the place. there is a lack of ability to find the right way to deal with this. almost two years now, people are exhausted and overwhelmed and when will this be over? shery: everyone suffering from covid betty -- covid fatigue.

rachel chang with the latest updates in indonesia and singapore. hong kong lawmakers are set to debate a new dock sing law and many tech companies are not happy about it. this is bloomberg. ♪

shery: netflix is forecasting

fewer new subscribers than wall street estimates, stoking concerns about a post-pandemic slump. it is expecting to sign re-.5 million new customers in the third quarter. the company is looking to video games as a new source of growth. china's evergrande shares and bonds hit new lows with fresh signs of a cash crunch. the world's most indebted developer saw its stock fall to the lowest in four years. it dropped to as low as $.54. doubts about evergrande's financial health intensified this week after it had a $25 million bank deposit. at&t is said to be an talks to sell its division to india mo b. discussions are still in early stages and may not lead to sale. axios said the biz and may

change hands at a fire sale price. the sale will be part of at&t's push to unload businesses. shery: hong kong lawmakers will debate giving the government greater power to punish doxxing offenses that can hurt the ability to provide services. joining us as our asia government managing editor. the legislative council holding discussions on these amendments. what can we expect? >> the debate starts today. it's unclear when the law will pass, though the government said it wants to pass it this year. it's very likely to pass. the focus is on the substance of what they talk about. we have already seen the big tech companies, the asia internet coalition, which

represents google, facebook, twitter, companies like that, effectively saying they are concerned that the law as it is written gives too much power to the government to potentially punish these companies for posts their users make and hold them liable. they are worried about an overly broad interpretation of what is doxxing, what is personal data, what can be shared legally? they want that fleshed out. they want this law narrowed so that they can continue operating here without worries that the government will order them to be shut down one day. haidi: how much support is there for this to go through? we had the entire political opposition resign. there is not going to be that much debate if there is support for it.

dan: politically they can do what they want. the question is what impact this has on the broader environment in hong kong. that will be the constraining factor for the government. they need to decide, what is too far that could be hung -- could be harmful to hong kong's overall business environment? that is a debate they have been having since the national security law came into effect. they have been trying to maintain the city's status as a global financial hub. we have seen the push and pull repeatedly and the doxxing issue is the latest manifestation of that. shery: let's take a look at some stocks we are watching into the next hour of trading. sophie: we are watching chinese education stocks after authorities pledged to reduce the cost of raising children. the tutoring industry on the mainland has been badly bruised

this year. we are going to be watching if buyers will scoop up battered down h shares, the biggest drop among the 92 benchmarks tracked by bloomberg. there is anxiety over liquidity risks in the property sector and regulatory oversight ways on sentiment. the bank strategist is recommending rotating to growth, india, japan, australia. shery: markets really swayed by what is happening on the covid front. thailand reporting record new cases, 13,002 new infections and 108 deaths, at a time when we have seen the infection spreading across asia, south korea also seeing daily coronavirus cases hit a record

of more than 1700. coming up later, a human rights watch researcher will discuss gender issues in china then why discrimination is on the rise. first, we discussed the markets with standard chartered's private banks. 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. (announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling. (announcer) do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

we want to offer great advice to everyone, but i think there are a lot of folks going after that marketplace. there's always more progress, there's always more progress to be made and you are right, and cases like private investing, there are pockets of the market where you have to be in the know. >> we have a framework. we have a new framework that is unanimously approved by the governing council and we are going to look as we always do every six weeks, at the circumstances. we're going to look at what forward guidance we need to revisit. we are going to look at the calibration of all of the tools we are using to make sure it is aligned with our new strategy. i think given the persistence we need to demonstrate to deliver

on our commitments, forward guidance will be revealed. >> it's even bigger because it's not technical, right? >> the best wealth managers in the world do more listening than talking. the most conclusive thing is to be able to say early and if someone can help you through that, that is one of the most important things. >> when it comes to wealth management, she is best in class. >> when she spoke, people