>> a very good morning and welcome to "daybreak: australia ." we are counting down to asia's major market open. shery: the top stories this hour. china's latest regulatory crackdown set to rock the 100 billion dollar private education industry. big investors facing risk include softbank and geithner global.

-- tiger global. haidi: a busy week ahead headline by the fed decision and a deluge of data and earnings. shery: the u.s. and china set for high-level talks, with tensions high and cooperation at risk. this is the picture across wall street, u.s. futures muted at the open after markets show another record high. 87% of s&p 500 companies reporting beating wall street estimates. a lot of optimism on the back of solid earnings. we sell the u.s. ten-year yield at the 128 level. we continue to watch out for more treasury volatility given we have the fomc meeting this week. the bloomberg dollar index with its first gain in about three weeks. we are seeing some you did trading for the bloomberg dollar index. smooth right now up to 2/10 of 1%.

this after a weekly gain for a second consecutive week. we have seen signs of demand recovery, and looking more positive for uranium prices. we are talking about u.s. tech earnings we have to watch, the big giants reporting this week including apple, microsoft, facebook, and we have the fomc meeting. so much focus on what is happening on inflation. haidi: what is interesting is we have at least from the white house side, they are suddenly changing the message on inflation. we are hearing less wonky terms, transitory, statistical exclamations. i guess a more plain language to try to soothe not just investor concerns but those that are worried about the impact of pressures on small businesses and daily lives.

let's look at how asian markets are shaping up, it will be up as he week. the fed, -- will be a busy week. the fed, and a huge amount of earnings in particular in asia, and tech as well. new zealand up about 1/10 of 1%. the kiwi dollar trading at a critical point, just shy of 70 u.s. the aussie dollar with a little bit of a gain. nikkei futures up. the tokyo olympics are underway, and we see a little bit of positivity. shery: we have to watch out for chinese stocks. in the u.s. and in china. the country unveiling a sweeping overhaul of its $100 billion education tech sector, banning firms from making profits, raising capital going public. the crackdown is part of a wider campaign against the internet

sector. chinese adr's inner longest losing streak since 2019. news coming out of china continues to be problematic. a chief market strategist is joining us now. does this give you more pause when it comes to chinese tech, adr, and investment in general? matt: it does. one of the things we saw last year when alibaba first saw some big restrictions, we thought maybe it was a one-off thing, jack ma had gone too far with some of his comments about the chinese economy and government. and he stepped over the line and they smacked his hand pretty hard. we thought it was a one-off thing. we have learned this year it isn't. the past few months.ral exam didi is the most recent one, and

then this weekend. the big impact on how people will invest over there. a lot of money has been invested in these educational tech companies, whether it be venture capital, private equity. that might disappear. that will pull on horns for how people invest, and the way some of the chinese companies act in near and intermediate future. it is a bigger setback than we thought a year ago or 10 months ago. shery: can all of that be offset by the fact that economic growth remains pretty solid in china? matt: i mean, that is a great offset, but there is no question the part of the growth was the great entrepreneurial spirit they let flow in china for many years. we all know that china has had certain controls on, and when jack ma or somebody else go a little too far, they will clampdown. it looks like they are doing

more than that. there are some issues when it comes to taiwan, which have taken a backseat the last couple of weeks because of these new curbs china is putting on their own companies. we talk about -- look at the semiconductor groups in the u.s. it has gone flat the last several months while the rest of tech has been rallying and the rest of the market has been rallying. maybe chip demand, once we get the supply back up, maybe the demand will not be there so much because of china. it is a telltale sign. haidi: this is different to just the central government wanting to take down a male the billionaire -- a mouthy billionaire, it is a intrusion into an entire sector to drive a policy directive, which is to make education cheaper. to invest in china, do you have to be aligned with what the

government priorities are? matt: most definitely. the one thing that is concerning is where the government's priorities are changes and can change on a dime. i think a lot of people felt, outside investors investing in china, felt the change was for real, and sure enough we can have setbacks along the way, but the changes were permanent and that is not the case anymore. overall, is like saying i think the government is going to go this way, but they can change on a dime, so do i want to invest the same money i did years ago because we don't know when it will shift direction? haidi: of course there has been positivity on it comes to tech earnings, the s&p 500 another all-time high. to what extent does the -- has the pandemic recovery been

priced into the earnings cycle? matt: i think it has priced into a great degree. thus the reason why the market is trading at such a high multiple. we basically have 23 times forward earnings and sales, you cannot fudge sales sales at 2.18 times, the biggest record, most overvalued on record. the fed is still providing an emergency amount of stimulus and a situation where we are no longer an emergency in the economy or the market place, especially the fixed income market, which was in an emergency six month ago. it is pushing the markets higher, than the underlying fundamentals call for. the market could continue to grow higher in the near term, but in the fall months when things go dicey, we could have problems. shery: definitely moving higher

when it comes to bitcoin, gaining ground for five consecutive sessions. where do you see the price at this point given a lot of it seems to do with potential tapering, tightening of liquidity and speculation this actually has room to run? matt: the big thing with bitcoin , it is hard to determine what is its fundamental value? so much of it is on technical analysis. right now, people are excited it is breaking above the 60 day moving average. that is good, but is only slightly above that. even if it breaks above the 15 day average, we still have to break above the 200 day moving average to get the kind of confidence that it will break to the upside. it still has some ways to go. the key support level everybody is watching is 30,000. we have tested that several times, and it has broken

slightly below it a couple of times, not enough to really scare people. below that level, it is a big washout. the battle lines are well-defined, which is really good. looking at $30,000 to support, and above that, at $43,000. above $43,000, it will really run. haidi: a lot of people saying 20 and 30 to the downside. matt, great to have you with us. still ahead on "daybreak: australia," more on bitcoin, trading above the crucial technical level. we dive into what it means for the broader outlook a little later. plus, the u.s. and china headed into their first high-level talks. our guest will give us her thoughts. this is bloomberg. ♪ . ♪

vonnie: at least six mainland china listed companies made exchange filings sunday after beijing cracked down on afterschool tutoring. the companies about compliance, and evaluated the downside risk. a day earlier, beijing revealed a sweeping overhaul of the education tech sector, banning companies from raising capital or going public. china is the -- is a bracing for more disruption after a typhoon hit the east coast south of shanghai. 100,000 people had to leave their homes. more flights may be grounded monday. this follows hundreds of cancellations on the weekend. china also diverted container ships from one of the world's busiest shipping centers. the top u.s. infectious disease

expert says the nation is moving in the wrong direction after combating a new wave of the pandemic. dr. fauci says a third booster shot might be needed, especially for the most vulnerable. he told cnn it is a problem that many people are still not vaccinated. daily deaths have reached the winter peak of 4000. u.s. house speaker nancy pelosi is not spiking her plans to hold up a bipartisan infrastructure package. she warned she will not put a bill on the floor. democrats are still working out the details of the follow along $3 trillion package for social spending and taxes on top of the 179 billion dollars in the current plan. negotiation others -- negotiators may announce their plans on monday. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: the u.s. and china hold

their first high-level talks on monday, and wendi sherman will meet with the foreign minister, who issued this warning ahead of the sit-down. >> the u.s. has been using its strength to put pressure on other countries and -- security to others. we need to tell the u.s. clearly, there is no country in the world superior to others and there shouldn't be one. china will never accept any country that claims to be superior to others if the u.s. does not learn to treat other countries equally, china and the international community has a responsible -- a responsibility to help them learn this. haidi: our guest joins us. that is setting the tone going into the talks. what are the expectations? >> certainly you say, setting a certain tone. the biden and attrition has not been shy about challenging what china would regard as its

redline on stuff like basic internal affairs. the idea that sherman will go there, and she will raise concerns about human rights in hong kong and with the wagers -- uighers, but at the same time we don't expect her to say to beijing, we are building a major anti-china coalition. and yes, both sides don't want to appear to be softening their stance. at the same time, there is a juicy prospect of a summit between xi and biden in october, so they don't want to wreck the prospect of that. most times with these talks, it could go either way and it will ramble on and at the end of the day, they are talking and that is a good thing.

shery: where are the areas where we could see cooperation? >> the obvious one is trade. and has to be said that amid the backdrop of what has been said, the two countries have been trading fairly well. the numbers are pretty healthy, to be honest. there is a context we need to mention. at the same time sherman is in china, you've also got secretary of state blinken in india this week, and you have the defense secretary going to singapore, vietnam and philippines. those are three countries that are very keen to hear what the u.s. stance regarding china is. haidi: this meeting wasn't even a given, because we know the foreign minister will be

receiving wendi sherman, but negotiations will not take place with him. james: that's right, it's always the way that you have those preparing the ground, and i guess you could say sherman is going there and her counterpart is not actually meeting her. at the end of the day, they are talking. that is always a good thing. when they met in alaska earlier this year, it got a bit testy, it was pretty low-level talks. if you are having negotiations, there's always the possibility some fruit might come from them. shery: james there with the latest on the u.s. and china talks. plenty more on that in the coming hours. a former u.s. trade representative tells us what they expect. next, dr. fauci warns the u.s.

is moving in the one -- the wrong direction in the pandemic and booster shots might be needed. meanwhile, protest against the lockdown in sydney turned violent on the streets over the weekend. the latest on the virus ahead. this is bloomberg. ♪

haidi: the number of coronavirus cases in sydney's latest outbreak has surpassed 2000, as protest against the ongoing lockdown turned violent over the weekend. there have been dozens of arrests following the protest we all saw over the weekend, against the lockdown. a lot of it against vaccinations. it seems like it is contributing to extending the lockdown. >> pretty much, the prime minister called the protests self-defeating, that this could

become a super sprinter -- super-spreader event. police are naming and shaming as well, some of the protesters including someone already on bail for organizing similar protests. there was a 20-year-old who drove two hours to attend. he told the judge he thought it would be a bit of fun. his lawyer has described him as the biggest idiot in australia. there was another gentle men photographed punching a horse. these were the people in attendance over the weekend. the premier says it has broken her heart and this could be a super-spreader. there were 141 new cases reported on sunday of coronavirus, taking the total to more than 2000 since the outbreak began in june. also two deaths, including a woman in her 30's with no underlying conditions, and not vaccinated. shery: let's talk about the vaccinations, how much progress has been made in australia? paul: things have been slow, of

course, but there is evidence they are getting a little better. the prime minister was proud to announce that vaccinations have hit one million per week, but it will still take a long time to get the whole population done. only about 12% of australians fully vaccinated at the moment and there is a shortage of pfizer, which is recommended for most -- most people. new south wales is imploring other states to send pfizer to combat the outbreak, and that has not been well received. they are looking at extending the duration between shots to start to get at least one jab in . there was a slim chance of developing blood clots from astrazeneca, and the advisory body now recommending the astrazeneca jab. in new south wales, it looks like we are in for the long

haul, lockdown extension beyond july 30 pretty much certain. shery: paul allen with the latest on the australian outbreak. in the u.s., we are also seeing an uptick of coronavirus cases and deaths as well, people have not been vaccinated yet. mayor bill de blasio urging private companies to institute vaccine mandates for workers. this is what dr. fauci had to say. dr. fauci: i'm not sure it would be the worst case scenario but it will not be good. we are going in the wrong direction. if you look at the inflection of the curve of new cases, and as you said, in the run in to this interview, it is among the unvaccinated. since we have 50% of the country not fully vaccinated, that is a problem. shery: this coming when we have ample supply of the vaccines, so

much so that pfizer will be supplying millions more shots for people younger than age 12 as well. haidi: we are still struggling to get supply in australia. everyone is hopeful the vaccination progress will go quicker. this comes at a time when i guess medical professionals and scientists are watching what is going on with the delta variance. increasing numbers of professionals urging the cdc to potentially revise their mast mandate to say that even if you are fully vaccinated, you should be wearing a mask. shery: i think we will continue to see the debate over whether more masks are needed, given the spike in the delta variant. let's get a check of the latest business flash headlines. china's market regulator orting tencent to waive exclusive music rights to pay half a million yuan in fines, after an official

investigation found is 2015 acquisition of china music violated regulations partly because it was not reported to authorities. tencent says it will rectify the situation. a case made for investors of all kinds to buy shares, opening to the public a roadshow reserved for institutional players. in the live-streamed presentation, a leadership team responded to customer questions about its business model and growth plans. it is allocating as much as 35% of shares for traders from its own app and is expected to start trading july 29. ticket sales down 20% on last week. new releases include the next installment of the g.i. joe franchise, and they struggled to attract fans. they are running 77% below 2019 levels as the industry struggles terrain -- to maintain recovery

momentum. haidi: let's look ahead on this monday morning for australia and new zealand. we are watching for more fallout from the anti-lockdown protests. scott morrison saying he plans to set new vaccination targets for the country. new zealand will get trade data in about 15 minutes time. we will bring you those as they get to us. and australia has succeeded in efforts to prevent the great barrier reef being listed as endangered by the united nations, it would have triggered additional conservation work. canberra has rejected this action, saying it is already making improvements through an investment program. that has been widely controversial in question. lots more ahead. this is bloomberg. ♪

shery: the education tech sector has become the latest target of china's sweeping regulatory crackdown. companies that teach school subjects can no longer make profits, raise capital, or go public under the new rules, jeopardizing the 100 billion dollar industry. let's cross to our executive editor for a greater china. what do we know about this latest crackdown and is it basically just wiping out the industry altogether? >> over the weekend, we got the

detailed official rules. they have been reported on earlier last week and already have in their reaction in the market. what this is largely, this demand by the chinese government that anyone who provides afterschool tutoring goes nonprofit, i think that will make investing in the sector quite difficult and i think that is why you have seen such a rapid selloff. haidi: is this all about ultimately trying to get people to have more babies? >> i think that is part of it. obviously, there is a lot of concern in beijing about the population of ability and that -- probably in the next couple of years starting to shrink. these tutoring services have made it so that financially, timewise, families having children, the burden has increased substantially. it is not just something to -- it is almost mandatory that kids go to these services now because

everybody is. so unless you are willing to let your child fall behind, there is pressure for parents to do that. shery: we are seeing some big investors put money into this industry. what will happen to them? john: i think you are starting to see a revamp of this industry. there is room for these companies to offer services that go beyond tutoring as it relates school curriculum so you can see afterschool athletics, sports, things of that nature. there is something for these countries to do. it will not be as large possibly. haidi: we will watch out for all of the market reactions for these relevant companies going into the start of trading in hong kong and mainland china. bloomberg's executive editor with the latest. as we talked about earlier, the u.s. and china headed into that -- the u.s. deputy secretary of state will meet with chinese

foreign ministers on monday as efforts to stabilize strained relations between the largest economies continues. for more analysis, let's bring in the director of public opinion and foreign policy program. always great to have you with us. if you read between the lines in the announcement we had from the state council, the foreign minister will receive wendi sherman but she will not be doing these negotiations with him. what do we note in terms of the way that this meeting has been set up? >> there has been this really interesting mix of protocol issues here where originally, the u.s. said they were going to cancel it because the deputy secretary was not going to be received at the level they thought was appropriate. they compared that to 2016 when then deputy secretary -- the then deputy secretary did meet with the foreign minister.

they need some kind of compromise agreement. from beijing's side, they have been ok. your actual negotiations will be with who we think is your actual counterpart so there's already on the obit of back and forth where both the u.s. and china are kind of trying to not lose faith but also think business might happen. haidi: in terms of managing very low expectations, what you think would be a win-win scenario for both sides coming out of these talks? john: you are right about expectations being incredibly low. of course, there has been the cyberattacks, the sanctions. last week, the biden administration warning that u.s. companies need to get completely out of changing so there is -- shin jong -- out of the city.

for both beijing and washington, there needs to be agreement between the leaders possibly at the g20 in october. it would be xi jinping and joe biden's first face-to-face meeting and i think that is really what both sides are aiming towards. shery: does that mean we should not be waiting for any practical rise -- compromise on some of the issues in place, like the tariffs on $300 billion of imports of chinese products into the u.s.? john: -- natasha: i would be surprised if there is that much. there have been some indications that they could do some thinking from the u.s. side on how to shift these things but at the moment, i don't see much opportunity for any concessions or what could be perceived as concessions on the u.s. side. i think they will be looking towards having something big to announce at that face-to-face meeting in october if it

happens. shery: we have seen escalating tensions between america's biggest allies in the region like japan and south korea. how much of a hindrance is this when it comes to america pursuing its strategy across east asia? natasha: this is really significant. deputy secretary sherman has been to tokyo, mongolia. there is a feeling in beijing that they are being encircled by u.s. allies. they have been saying that quite regularly in their public statements but this is a growing anti-china circle and that discussion will be difficult to shake in terms of progress. while deputy secretary sherman has been in these places, she has been talking a lot about values, a lot about biden's agenda. her meeting women's empowerment groups in japan, lgbtqi plus groups in mongolia, and pricing on that idea of democratic values in these countries.

this is very much a part of what president biden aims to do to shore up allies to bring value to the center of foreign policy and that is clear to everyone including beijing. haidi: a lot of beijing's positioning as you say is based on this idea that they are the rising superpower, whether anyone likes it or not, and that the u.s. exceptionalism story is in terminal decline. do you think that narrative has changed since the biden administration took over? natasha: i do not think so. i think it has become more entrenched. there is definitely this sense in beijing that this is the time and if anything, the biden administration picked up on that message and pushing with that competitive system that democracy has to win, democratic values will always prevail. if anything, that has really --

because this message to become more prominent. they truly feel on some level that their way of doing things and the party is under threat and i think that is what we are going to see through the relationship going forward and that is why i am not very optimistic for progress. shery: thank you very much for joining us, the director of the foreign policy program. let us stay with china as we look at morning because ahead of the asia trading day, keeping a close eye on the mainland education sector after beijing banned for-profit tutoring. jp morgan has downgraded a trio of schooling stocks including new oriental education and technology, and the new price target implies an 11% decrease from its last trade in hong kong. jp morgan says china's crackdown brings unprecedented uncertainty. we are also watching dd, --

didi. volatility may continue on monday. that is when a 25 day a quiet period expires for u.s.-based analysts at the bank. didi are way below their ipo price right now, haidi. haidi: coming up next, we continue to talk about the pandemic. the politics of it all. and the blistering hate all at play at the tokyo olympics. we entered day three of competition. we get you the latest from tokyo, just ahead. this is bloomberg. ♪

vonnie: you are watching "daybreak australia." embattled prime minister in malaysia. parliaments will sit this year on monday. it will give lawmakers an opportunity to grill the prime minister over his highly criticized handling of the pandemic and the economy. an imposed state of emergency do to end. suspending parliament and ordinances without approval.

south africa's president, cyril ramaphosa, unveiled a new relief package to help the economy recover from the pandemic and recent riots over the jailing of jacob zuma. the measures include reinstating a temporary monthly welfare grant for the poor and a more than $27 million package in humanitarian relief. south africa has eased restrictions of covid cases. phillip morris, the maker of marlboro, is set to be planning an end to cigarette sales in the united kingdom. the ceo says the plan is part of encouraging a switch to alternatives such as e-cigarettes. the u.k. government laid out a roadmap for britain to go smoke-free by 2030. israel carried out airstrikes in gaza after pro-hamas activists launched incendiary balloons on sunday. local media reports it caused

three fires in southern israel. the latest violence comes to months after an 11 day war between israel and palestine killed 250 people, mostly in gaza. the rabbi turned committee and, known for his standup nominee, has died. he was famous for his sharp wit and piercing social commentary on relationships and being jewish. it landed him appearances on the ed sullivan show and broadway. he put on several one-man performances including his "the world according to me." he was 93 years old. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: day three of the tokyo games is underway with the pandemic and politics both at play over the opening weekend. joining us for the latest is sophie jackman. good to stop saying we are

counting down of course to the start of the olympics. they are underway. what is the virus update. -- what is the virus update? sophie: among athletes and contractors and staff and others under the general purview of tokyo 2020 organizers, we did see more positive cases coming out over the weekend and that is really due to that aggressive testing regime they have. perhaps the communications by the organizers did not but the possibility of positive cases at the forefront and said we are prepared to do whatever we want to do. but with what we know about the way the virus spreads, it is not entirely surprising that we are starting to see some positive cases now. when you go outside the athletes village, the seven day average does keep creeping up among the general population. we remain under a state of emergency here, designed to curb the spread of the virus. that does not mean hardluck down. cases are not as high as they are in parts of the u.s.

yet. what many would call a small outbreak but it is causing concern for those participating in the games and those observing as well. shery: the public not too happy with the olympics. the latest nikkei poll showing that cabinet approval rating has fallen to 34%, down nine percentage points. what does this all mean and how high are the stakes for policymakers? sophie: a big decline in the nikkei poll and it is not the first. the cabinet approval ratings of president suga have been tanking for months now and the public's fighting the response to the virus and the handling of the vix factors into why they are not happy with this government. a couple months after the olympics end, we have a general election. so what they have to do and what economists are projecting they will do is roll out some big stimulus to try and stir the coffers of the economy that is under pressure from these states

of emergency in different areas of the country. the next question is, is suga going to survive past the action? he does come up for reelection in september as well so we will wait and see if there are any stirrings among other heavyweights in the party to see if they might try and dig him in this and -- ditch him in this environment. shery: it has been a bumpy term but could we really be talking about a change in government? sophie: change of government itself, like a switch from one party to another, quite unlikely here. suga's party, the liberal democratic party, is huge, and it has been in power for most of the postwar period. they can easily dock -- duck to the left or the right. we did see the elections which took place before the start of the olympics the turnout was very low and that indicates that people who would be inclined to vote for the ldp may stay away

this time as a sign of their discontent with the administration of suga and how they handled this virus. haidi: our tokyo deputy bureau chief, sophie jackman, with the latest on day three of the olympics. you can see more coverage and keep track of the tally at the tokyo games. that is on the terminal of course and you can also see it on bloomberg.com. let's take a look at breaking members when it comes to new zealand. we have the trade balance numbers out just now and what we are seeing in terms of the imports number for the month of june, coming in at $5.7 billion, that is higher than the prior of 5.4 billion dollars paid when it comes to exports for new zealand, a number close to $6 billion. again i ran building on maze five point $7 billion and that is really leaving the trade balance at 206 to $1 million -- again, building on 5.7 billion

dollars and that is really leaving the trade balance at -- coming up next, bitcoin hit a key technical level we have not seen since may. elon musk helps rebuild confidence. we will get you the latest, next. this is bloomberg. ♪ ♪

>> a quick check of the latest business flash headlines this hour. singapore's property grew -- grew up lead to go public. the blank check company backed by billionaires richard lee and peter thiel. the transaction is expected to close by the first quarter of 2022 and the combined entity will trade on the new york stock exchange. it is backed by tpg capital and kkr and it is the biggest real estate marketplace in southeast asia. the bank posted a 78% jump in profit in the first quarter, helped along by strong net interest earnings and lower bone buffers. net income was $620 million, beating estimates and doubling from the same period one year ago. it set aside $280 million in bad loan provisions for the quarter compared to one billion in the same quarter last year. intel's ceo says the worst of a sales slump has passed and he will not be apologizing or investment in long-term industry

leadership. pat dulcimer was speak -- pat gelsinger was speaking to emily chang. he struck a bullish tone when it came to the future. pat: we are bringing on the new factories which have yet to be depreciated and that is a normal cycle in the business as we bring on the costs at scale so it is very typical as we go through that and then they build up in the longer term, so overall, we feel comfortable with the margin profile for the business to return to levels not the industry would expect. this is very normal cycles but i would also say, hey, we are investing from long-term leadership and we are not apologetic about that. we are committed to be a growth company that is leading in technology and between r&d, capital, you know, we will make investments to have that occur. we have an analyst session at the end of the year but we will lay out that picture to the marketplace more clearly, but overall, we are not concerned about q3 margins.

we are being more competitive. the products are being well accepted by our customers. we are exactly on the strategy i laid out. >> i want to talk about the chip shortage. you said it hit autumn but it will linger for a couple of years. i wonder how much that is adding to your optimism about the foundry business and taking on tsmc. pat: instantly is a factor, emily. right now, everybody, you know, boy, what do you got? can you run more wafers for me? there is a search for supply in the industry which is a bit of a tailwind and there is also very few companies that can do leading-edge technologies so they are looking at us quite aggressively that way. this rapid buildup of new capacity, it takes time. and building a new fab from scratch is a three year to four year exercise to have it else so all of that view of a cycle of significant demand, as i said, i think we are in for a decade of

good characteristics because every aspect of human existence is going digital. everything digital needs semiconductors. if you look underneath that, that will be a good cycle for semiconductors. shery: that is pat gelsinger striking a positive tone when it comes to the global semiconductor shortage but of course we will be watching japanese chipmakers once they start trading. we have seen those lead times for chips. the gap between ordering and taking delivery increasing to over 19 weeks already in june so we continue to see these global companies really struggle with the global shortage of semiconductors and we continue to see also moves here in the u.s. a streamlined, the process to really coordinate the production of semiconductors with the government now starting to back the different trade groups and industries related to global chips. bitcoin has rebounded to our key

technical level, helped in large part by positive comments from tesla's ceo, elon musk, not to mention kathy woods. both big boosters of crypto. meanwhile, an early mogul warned of more challenges for digital currencies ahead. su keenan joins us with the latest. let's start with what technical analysts are saying. su: they are saying this is a good sign for the bitcoin bulls, hitting a crucial technical level of that weekend, rose above its 50 day moving average for the first time since mid-may on saturday and rose again on sunday. it's fifth consecutive day of gains, rising as high as 34,600 and change. bitcoin has had a volatile run in recent weeks and it looked to be in danger of further declines after falling below 30,000 earlier in the week, a level some predicted could lead to further declines. the big boost as you said coming

from last week's conference on bitcoin. tesla's ceo, elon musk, saying he wants bitcoin to succeed and his spacex corporation, in addition to tesla. kathy woods widely followed investment rockstar at least earlier in the year in terms of her tech investment. corporations should consider adding bitcoin to their balance sheets. a crypto mogul in china said the crackdown would probably intensify and could lead to an outright ban. he sees the chances of that as at 50-50 but nonetheless is still a bitcoin bull, sees bitcoin getting above six to 5000 in the second half and possibly peeking above 250,000 later in the year. very bullish outlook. back to you. haidi: we are going to speak to bobby lee in one hours time or

sooner, i should say. as we get into earnings season, some of the companies that proudly held bitcoin on their balance sheets, expected to face a bit of a reckoning. emily: big boosters like tesla and microstrategy in particular are now in the spotlight, especially in light of the fact that we had a 41% drop in the second quarter. analysts say the disclosures we get, particularly from tesla, microstrategy, and square could raise a few eyebrows. there are those who would allow companies to simultaneously book gains if they sold into the big rally we saw before that dip in june and microstrategy is the one in focus for some possibly big losses. back to you. shery: su keenan with the latest on crypto. that is it for "daybreak australia." daybreak asia is next.

we are in the thick of earnings season. watching to see how these chinese education firms react as we count down to the start of trading in mainland china and in hong kong after news of the government crackdown. this is bloomberg. ♪

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haidi: a very good morning. i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. welcome to "daybreak asia." china's latest regulatory crackdown is set to rock the $100 billion private education industry. big investors facing risk include softbank and others. traders bracing for a busy week headlines by a