>> a very good morning, welcome to "daybreak australia." i am haidi stroud-watts in sydney. >> i am sophie in hong kong. >> the top stories this hour. chinese stocks suffer their biggest two-day wipeout since 2008. beijing sweeping crackdowns, erasing billions of dollars of

value in only five months. >> tesla revenue beats estimates. the ev maker said shanghai is its primary export hub. >> the u.s. and china holds contentious talks on paris and human rights, but leave the door open for a biden-xi summits. futures muted at the open, but the s&p 500 gained ground for five consecutive sessions, closing at record highs. large mega tech companies leading the gains. we have the real yield on the 10 year falling to record lows, -1.1% is the level ahead of the fed meeting later this week. we also had bitcoin under pressure, this surpassing the $40,000 level for the first time since june. we have speculation amazon may be considering receiving bitcoin and digital currencies as a

payments. we are watching movement in the crypto space closely. it was about the chinese avr. the golden nasdaq index falling to a 13 month low as we have those, back to back losses, the biggest wipeout since 2008. we have seen large investors get out of the market already. cathie wood for example decreased her holdings when it comes to chinese tech stocks, but last week every day she was selling either tencent or property market stocks they were holding. the caveat, etf traders in emerging markets have been piling into china and hong kong trades just before the crackdown. haidi: you have to have quite a bit of risk appetite for these opportunities. even goldman sachs are saying,

even when you think you have priced in china risk, it could get worse. didi most recently and the chinese education tech names. we saw the plunge in meituan, the food giant. the food delivery market, a massive one, plunged, the worst on record after the policy saying they must respect the rights of delivery staff, at least giving them the minimum income. it feels like if you are going to invest in china, you need to be able to go with the flow of beijing priority policies. shery: some analysts were saying you have to remember this is still china, not the u.s., not western economies. if they change policy, it can be fast and decisive, allowing investors to keep an eye on. sophie: we have a busy week

ahead when it comes to earnings. back off concerns around china's regulatory clampdown, which saw the index fall to a bear market monday to a december low. chinese futures and hong kong futures settle in the green. we could see consolidation this tuesday, but we have concerns. the rba will push qe tapering to february next year, given the lockdown on gdp. we do have fresh records this month. expecting stellar results on the commodities boom. flipping the board we have seen base metals rally with nickel nearing a seven year high, easing demand.

ditto for copper, which jumped on the lme. goldman is bullish on the metal. we are keeping a close eye on ev-related concerns. on the radar includes panasonic of japan and lg of south korea. haidi: tesla getting started on a big tech earnings week read after a second quarter earnings beat with the markets close. we are seeing tesla shares trading up 1.5%. let's get details. ed ludlow joins us out of san francisco. what was the highlight for you? >> this was the most candid tesla and elon musk have ever been about supply chain issues, especially semiconductor shortages. after that record level of

deliveries in the second quarter, they are getting better at building the cars. margins are growing, despite the highest margin lines being down for a significant period of february. the chip shortage was a concern. we saw elon musk saying just that. [no audio] >> this is out of our control, essentially. it does seem like it is getting better, but it is hard to predict. ed: he was talking about specifically, they did not have chips for the airbag systems. even though we reported tesla can be number, elon musk is reporting even if you find an alternative chip supplier, you have to rewrite the code for that chip, which takes time. it took a lot of midnight phone

calls to suppliers to react to the shortage and impacted their ability to produce cars. >> those chip leadtimes not getting any better. what are analysts saying about tesla's earnings given these risks? ed: the focus is on that impressive automotive growth margin. regulatory credits were a factor, but less than a quarter ago and less than the same period, $350 million. model s and model x have sold in smaller volumes, but where the highest margin vehicles. they were shut down when they had the new plant virgins -- plant versions online. china made up a bigger proportion of those exported cars. they also come with lower than average setting prices and are doing something right in shanghai.

>> what are we expecting when it comes to big tech names this week? ed: the story was the stickiness of those pandemic trends. i am not just thinking of consumer facing businesses like facebook, apple, but advertisers, cloud providers. the question is how much has demand been maintained, how sticky was demand for business? the consensus is we will see outside earnings growth from those core names, but not to the same level we saw at the end of 2020, beginning of this year. >> not was ed ludlow with the latest on tech earnings. more analysis on tesla earnings and other mega-cap earnings. loup ventures founder jean muster joint -- gene mu n --

gene munster joins us later. >> does it make sense people are going back to growth given the uncertainty, whether it is the delta variance or the growth outlook? >> i would say it absolutely does. this is not surprising. it is exactly what we have seen. any time there is a hick up, a potential scare in the growth horizon, we see the 10 year fall, people continued to pile into growth. this is not surprising at all. it can continue to be an opportunity, but this is what we have been talking about for quite some time, another potential speedbump, the potential path we were on, the same path to consumer spending and what we believe is the early innings of a long stage recovery. >> we continue to see concerns sending the real yield and the 10 year.

we heard from goldman sachs they are down grading the forecast for the u.s. by one percentage point when it comes to third quarter fourth-quarter u.s. growth. what is in the lookout as investors tried to get back into the markets or continue investing in this environment where the recovery could pause or peak? >> the biggest thing i would say is perhaps markets were ahead of themselves. i think investors saw these incredible numbers coming through from the strong consumer, government stimulus, around the world. this was never a sustainable path. many will have high gdp growth, but will quickly revert to a long-term trend, 2%, 3%. that is healthy, actually. investors need to be focusing on the longer-term picture,

companies that can continue to grow, have a long run ahead of them, along pathway and solid balance sheets, to ultimately building long-term portfolios and using these entry points rather than perhaps exit points and fear. >> you say corporate balance sheets are getting worse and worse. is this being priced into earnings expectations yet? >> i think it is beginning to. it is less about earnings expectations and about the fear of investors. you started by saying the real yield on the 10 year continues to decline. this is what central banks are trying to engineer and have been engineering successfully for quite some time. they want to be owning risk-free debt punitive to investors so it forces them to take risks. it lowers capital around the world and forces there balance sheets to be in a more negative position. this is natural.

this is the environment we are trying to engineer. what we need to look at his companies that have the ability to generate free cash flow, to have the ability to service the debt. it is not debt in and of itself that is a problem, but the ability to service that sets. that is what we are focused here on thornburg. >> diversity is your preferred heat shields. what does that look like in a nicely balanced portfolio right now? jeff: ultimately, and any fixed income portfolio, it depends on the outcome you're trying to achieve. most income portfolio serve a balance of capital today and capital in times of stress. it looks like broadly taking volatility back out of a portfolio. when you are compensated to take risks, you should feel free to step into risks. when you are not, risks leverage

back. we think now is an opportunistic time to be dialing back and waiting for a better entry points in the fixed income markets that have not presented themselves as of yet. >> always great to have you with us, co-head of investment joining us. beijing's education [indiscernible] helping every sector. we take a look at what to expect in the market open after monday's row. the u.s. and china leave room to talk after a contentious meeting. the latest ahead. this is bloomberg. ♪

>> you are watching "daybreak australia."

president joe biden says no u.s. combat will remain in iraq by the year's end. the white house official says washington is expected to maintain a military ground presence. iran faces pressure from hard-line action that want the remaining 2500 u.s. troops to leave the country. u.s. state department raised an advisory to the highest level, urging americans to avoid traveling there. the cdc boosted their warning for spain to the highest level as covid cases climb. they had opened their borders to u.s. tourists in june. california employees must prove they have been vaccinated or wear a mask in the office or undergo weekly testing. all health care workers will have to provide proof of vaccine or submit to similar protocols. similar mandates have been issued in new york city.

mayor de blasio say new york workers who resisted the rule risk dismissal without pay. bloomberg has been told the u.k. government is planning to move ahead with its lack ship nuclear project. even without funding. they have a 20% stake in the development of the power station, but britain is looking for ways to remove it from future projects. >> foreign money is being invested in international projects. money does not smell, as the expression goes. with any form of tech -- technological control, we need to make sure these are able to serve the people and not become a source of leverage. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries.

i am vonnie quinn. this is bloomberg. >> the u.s. china left open, the potential of a summit between their presidents. washington says it is still considering the option of a face-to-face meeting. >> the president continues to believe in face-to-face diplomacy, something he has long been an advocate for. we expect there will be opportunity to engage at some point, but it did not come up in the context of these meetings. that was not the purpose of these meetings. haidi: let's bring in white house reporter mario parker. there are tensions regarding protocol for this meeting. was it an encouraging resolution? mario: it was a test meeting. the readout from china and the u.s. did not give much ground further two leading world

economic powers. jen psaki, the white house press secretary, did add that president biden still sees an opportunity for face-to-face diplomacy. we saw that in action last month with vladimir putin. he said just because they do not see i tie on -- see eye to eye does not mean they cannot seek common grounds. there is a possibility for the two heads of state to meet possibly as soon as october. >> are there any preconditions that must be met before this summit can take place? mario: the deputy secretary of state said a meeting was not necessarily discussed. that was not the purpose of her meeting with counterparts in china. there was not talk of any red

lines being drawn as a precondition for the meeting just yet. >> that was our white house reporter mario parker joining us from washington. we have more when it comes to the broader impact of geopolitical tensions and china's tech down on tack in other sectors. bitcoin falls back below $38,000 after briefly climbing above $40,000. more ahead. this is bloomberg. ♪ ♪

>> a wild ride for bitcoin, surging 16% to exceed the

$40,000 level, but is back down to the $38,000 level. some denied to amazon might accept bitcoin for payment. we bring in su keenan. the rally helped by a -- by another factor. su: we saw it run for cover as a coin exceeded that $40,000 mark. if we go to the way the lead cryptocurrencies traded in the last trade, bitcoin's pain was ether's gain. we see them all down in the latest trading. we had amazon posting an ad that seemed to indicate we are looking for an executive for our agile currency and blockchain strategy. a lot of bitcoin bulls were like, yay, they will be taking payment. and both of them juicing the

gain. over the weekend we saw a key technical level surpassed that set up bitcoin for a positive run. what is also interesting, if you go into the bloomberg, a key tell on the bitcoin is the rsi. that means it can turn just as easily and reverse direction. >> bloomberg has learned executives may be facing a criminal investigation by the u.s. justice department. su: several sources close to the matter telling bloomberg the justice department officials have been looking at tethered dating back to2018. now it appears they are focused on something that could impact the crypto ecosystem. potential bank fraud, whether banks were misled by tether. they are used to trade bitcoin, specifically the justice department officials are looking

at whether they concealed from banks the transactions. >> su keenan with the latest on the crypto market. tesla lifting its delivery outlook this year after reporting a second-quarter earnings beat. the ev maker posted a record profit of $1.1 million. operating income surged on higher sales of the mass-market. model 3 sedans. a bitcoin-related impairment of $23 million after the cryptocurrency plunged in the second quarter. electric vehicle maker lucid group with a reverse merger. speaking to a bloomberg -- speaking to bloomberg, the ceo peter rawlinson talked about the milestone. >> we rely on 260 suppliers

around the world for 3000 parts. this is a logistical operation. many suppliers have produced wonderful results. we are having to support some of those suppliers that need that extra help to get them across the line in terms of their component quality, but we are getting closer every day. we will have a fabulous motorcar in production this year. >> taking a look at the day ahead for australia, energy companies set to release second-quarter output data. reports on focus at the open. credit suisse with a target around 10 aussie dollars per share. also looking for the latest covid case numbers out of new south wales. reporting 145 new cases monday despite sydney being under lockdown for a month. we have heard about this cabinet meeting as well as this extension to the lock down looks

all but certain. >> we continue to see surging infections in australia and around the world. we are talking about covid infections increasing the most in two months. it is not surprising we are seeing more and more people here in the u.s. perhaps considering mandating vaccines for people who have yet to be vaccinated. california requiring all state employees to prove they have been vaccinated or wear a mask. this is what new york mayor de blasio had to say. >> on september 13, the first full day of school, every single city employee will be expected to be either vaccinated or be tested weekly. this means everybody. >> the department of justice also weighing in, saying the vaccine's status as an emergency product does not prohibit employers from mandating those vaccines. >> you do wonder where strength

might come in the private sector. reliance doing well to get most of their workforce vaccinated with at least one shot to combat the outbreak. a lot of work 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.

>> we are on the verge of having platforms and companies that are so powerful and influential in the political process that they are ungovernable. china has to realize this poses an existential threat to governments and law. >> you see china enter data protection for what it considers sensitive. these are the type of growth and regulation we should expect. >> the u.s. and china are in a text competition according to most u.s. policymakers and that

has meant that even on the u.s. side, there are increasing restrictions on which companies tend to seek u.s. dollars. >> this chinese leadership is so intent on exercising political control that they are even willing to pay something of an economic price point. >> some of our guests reacting to beijing's sweeping crackdowns on its tech and education sectors. let's take a look at the prospects. our markets reporter joins us. i suppose this is the question nobody seems to be able to answer. how big is a sufficient discount for the amount of risk, not knowing what the next target is going to be? >> the biggest risk now. people try to understand -- all sorts of industries.

if you look at the new oriental education company, the afterschool tutoring company, edu has 5 billion sitting on the books but the market cap has already fallen below that so this is essentially people worried about the existence of the company. shery: we are seeing crackdowns and so many different sectors. even the housing market property management stocks were under pressure when regulators said they would be looking into bringing order into that sector. which of these crackdowns pose the biggest risk, systemic risk, but the broader markets? ye: i think it is the housing market but if you look at what is motivating the chinese government to do all these crackdowns, view these actions

through the biggest long-term growth problem that china is facing. it is facing an aging population . it also has a deterioration of the relationship with the u.s. it is not surprising that the crackdown on the private tutoring industry came after a survey showed a slowdown in population growth because education and housing costs are viewed as the two major areas for china's willingness to have more babies. housing and education becomes the target of this crackdown. that's not surprising because china is trying to address the aging population problem. housing is also at the heart of the chinese debt problem, the leverage, for all these property developers. there continues to be debt overhang. if you think about didi, this is an area where china tried to secure its data security. if you are putting the lens of

deterioration between the u.s. and china, it makes sense why china is stopping on these companies from seeking ipo in the markets. china has an overarching goal and tried to address all these long-term growth problems. haidi: that is clearly a bigger goal, a bigger priority than the gradual opening up, right? the policies over the last few years, trying to open up parts of the market to foreign investors. what those something like this tell us about beijing's priorities when it comes to where foreign investors kind of take in that ranking? ye: right. right. opening up the chinese domestic market. that is the reason china is stopping all these overseas ipo's because in the previous years, on these investor companies, alibaba, for example, and didi are seeking overseas

ipo's. they circumvent the policy regulations while management companies and foreign investors, on the spend it's from the growth of new china while the domestic investor has no chance of getting benefits from growth companies. -- allow this continuing now that we open up our own domestic markets to foreign companies. ipo's inside china, foreign investors can still come in to buy all these companies. this is the reason why china stopped on these overseas ipo's. shery: ye xiu, thank you so much for that insight. analysts weighing policy risks from china. sophie kamaruddin in hong kong with a wrap of morning calls. any comments that stuck out? sophie: when it comes to china's

education stocks, so far this year, we have seen more than $126 billion in market cap wiped out for names traded in the u.s., china, and hong kong. chinese tutoring companies are now virtually un-investable. they have set price targets at net cash value which might not even fully protect against the worst case scenario. flipping the board, i want to highlight what has been going on with didi global as well. that stock has been downgraded to neutral from overweight. regulatory uncertainties. delisting cannot be entirely ruled out yet. the companies dominant position is not likely to be completely destroyed. just curb from penalties. as for tencent and alibaba, the equity company maintaining its overweight position on the view that these companies have risks that appear manageable. they may benefit from any

near-term cooling in competitive intensity. shery: tons of debate on whether they should be overweight or underweight given regulatory risks. first word news with vonnie quinn. vonnie: the u.s. and china left open the possibility of a presidential summit despite contentious talks between top diplomats. the white house says wendi sherman's visit to the city was focused on setting guardrails on the relationship. she was presented with two keyless of demands by the vice foreign minister. in return, she underscored u.s. concerns and said the u.s. does not seek conflict with china. moderna says it will expand an ongoing trial of its covid-19 vaccine in children under 12 to gather more data amid worries that mess your rna shot may trigger rare heart side effects. moderna expects to have data that will support authorization in late 2021 or early 2022. the new york times reports both madonna and pfizer are expanding

trials at the request of the fda. singapore aims to relax more virus curbs including beginning quarantine pre-travel in september. it marks the first time the economy has set a timeline to reopen borders that have been mostly shut over a year. the city state expects to have fully vaccinated 80% of its population by then, allowing officials to ease measures, including large gatherings of fully vaccinated people. in his final address to congress, rodrigo duterte pushed for the opening of the economy to meet more foreign investing. the 76-year-old pledged pandemic support to help businesses and defended his much criticized drug war and pushed for more tax reforms. ahead of his speech, protesters took to the streets and left-wing activists hung a huge banner that read "goodbye, dutere." -- united arab emirates and lied

to investigators about it. the founder and former chairman appeared before a federal judge in new york city. it was his first in-person appearance since his arrest last week. 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. haidi: coming up next, as tesla boosts earnings season with better-than-expected results, our guest joins us to take a look at what to expect from the rest of the big cap world. this is bloomberg. -- techworld. this is bloomberg. ♪

>> public sentiment is at the inflection point. at this point, everyone agrees that vehicles are the only way forward. >> elon musk speaking on teslas earnings call so take a look at tesla after hours. we have seen moderate gains to the tune of about 1.5% after the company reported better-than-expected -- off the session highs, 1%. better-than-expected earnings. i want to bring in the cofounder of a venture company. it seems like one of the most

positive waves of momentum we have had for a while. what did you make of the comments and the numbers? >> they are impressive also big numbers. just take a step back and think about the action here. we are at this point of no return with easy adoption -- ev adoption 122% year-over-year for the june quarter. the auto industry was up 50% so what you are seeing is they have a product that people want. that is not new tonight. what is new is this concept of how they continue to push margins higher. through tesla -- for the stock to continue to go up, they need to prove to investors that this is truly a tech company and true tech companies have high growth margins, higher than what the current auto industry is that, 15%. this is the punchline tonight that their growth margins,

excluding a benefit that they get, ev credits, was about 26%. that is the best it has ever been. that is good in itself but there were complicating head winds. they were down 2% year-over-year so that makes it harder for them to raise margins and second of them is a component market causing components to go up. they still improved their growth margins and to me, that is the biggest take away from the earnings tonight. haidi: the other take away for me when it comes to the china market, saying shanghai is the primary hub. that is really encouraging for such a major market for tesla but when you take a look at the broad-based chinese government crackdown at the moment, is the risk very much heightened for an american company in china? gene: it is.

it is a complicated equation that we do not have the answer to but you're set up is appropriate that tesla is going to be leaning more on china for manufacturing. they believe that this, as you mentioned, is the hub. they will be launching their texas factory in berlin by the end of the year. they reiterated that. they have a dependence on china and china is really important not only because it is the largest ev market but the largest ev market will probably be the first market that is the largest autonomous market so when you think about the complexities to the relationship that tesla has with china, it starts with the importance that china plays for tesla's future over the next several years and i think for u.s. investors and tesla as a company, a little bit of uncertainty about how the government -- the chinese government is going to treat

tesla. this bitcoin reversal that the company did earlier in the quarter was largely attributed to some commentary or pressure that they had from tesla, from chinese regulators. shery: just out of curiosity, elon musk saying he could be skipping future tesla earnings calls. will it make a difference? gene: i was bummed out to hear that. the edge of our seats. -- somebody who has followed this company for a long time. there is substance beyond that. you see companies as they move from a point where they need to invest. there is a point where they just

have enough. shery: -- reporting this week including apple. given now that we are emerging from the pandemic, how much can we expect the pandemic tailwinds to continue for these companies? gene: they will get a nice continued boost. this week, if you look at four of the big tech companies reporting, generally, things will be going well. the question i am asking is, yes, june went well but how much of that is sustainable? that is why you have situations

like with apple where -- i covered apple for a long time and the best quarter i have had was there march quarter. the stocks moved up a little bit in coordination with the results. that is the substance of how much of this momentum that they had is going to continue? i suspect apple and amazon will be in a good camp and see the momentum continuing and they will probably see google and facebook even though businesses are doing great. they will probably not sustain these higher prices they have enjoyed with this inflationary environment. haidi: always made to have you with us. gene munster, cofounder of loup ventures. $306.2 million.

full year investment expenditure between 250 million to $350 million and we are hearing from the full production numbers at 25.5 to 28.8 million barrels of oil or equivalent when it comes to that second-quarter production number at 6.5 9 million barrels of oil or equivalent and the operating revenue again at $366 million after oil surged and it is still talking to santos after rebuking that takeover offer that would have created the $16 billion lng x giant. shery: let's turn to ev makers as well. they closed around 11% higher on monday after going public through a spac merger with a blank check company. the ceo spoke to bloomberg's dani burger and alix steel. >> we are going into production

this year and we are on track this year production schedule and next years and the $4.4 billion means that we can accelerate our growth as a company and mitigate execution risk. >> production can start this year. i'm sure a lot of shareholders are looking forward to that. you did have to make an appeal to get this transaction done, the spac done. a lot of the shareholders are retail investors. what does it mean to you to have such a large retail base? >> isn't it wonderful that the reach of our mission has reached so many people in the retail sector but we have an illustrious roster of traditional institutional investors as well so we have this dimension, this diversity which is attracted to our

technology and mission and i get a great situation. >> -- i think it is a great situation. >> it feels like it will set you up for a lot of execution risk. you have to meet your target. with valuations as big as you have and the retail base as big as you have, you have to meet the targets in order to deliver. what are the question marks you need to be monitoring to make sure you can hit those numbers? peter: execution is everything now. we should satisfy customers. i spent time in the factory every week now, making the teams operate cohesively. this is a huge push now in execution mode. we have to get the quality right. we started building our run of production. we already started that. quality and run. make no mistake my these are the

cards that once the quality is right will be sold to customers. >> if you are in the factory near the every single day, you might see some of the supply chain issues that come through. just how bad is it out there right now? peter: the supply chain has been hit by covid and that is undeniable. quality people have not been able to visit certain suppliers to do their audit which would be the norm for a business like ours. we rely upon 250 supplies from around the world for 3000 parts. we are having to support some of those suppliers that need those extra help to get them across the line in terms of their component quality but we are getting closer every day now.

i am confident we will have a fabulous motorcar in production. >> it's not just chips but it's also things like cobalt or lithium to make the cars. longer term, there will be some resource problems. are you going to have to bring some of that internally and make acquisitions so you can short the supply chain? what do you think -- shore up the supply chain? what do you think? peter: we brought ahead for the near term. longer-term, the problem will go away. the medium term planning at the beginning of next year, we have risk mitigation strategy including alternative sourcing for some chips and alternative designs to accommodate those. i think we are in a good position. we have a number of backup plans in place. it's not like we are going into true mass production immediately.

we will scale up our production on an s-curve and because of that, we don't have the demand in the near term for the major -- that a major automaker would have and we play that to our advantage. >> exactly what is production going to look like this year when you to begin, if it is a ramping up type approach? peter: absolutely, we will move from two cars a day to four cars a day to 20 and so on and we will be limited by our ability to make the quality rise. if it is not right, we will slow things down and get things perfect. this is the approach our discerning customers rightfully demand. haidi: that was peter rawlinson there. be sure to tune in to bloomberg green leo -- radio. you can listen in via the app, radio plus, or bloombergradio.com. plenty more ahead. this is bloomberg. ♪

haidi: a quick tact of the latest business flash headlines. kathy wood is exiting stocks as beijing's crackdown -- the largest fund now has less than 1% of assets invested in

chinese companies compared to it percent in february. s&p cut evergrande credit rating by two notches. it said the property developers weaken access to funding. it also expressed concern about margins as evergrande promotes aggressive -- they downgraded evergrande last month. credit suisse is planning to underwrite more tech focused deals in china as markets are roiled by beijing's crackdown. the head of the bank of china securities joint ventures said they will back ipo's on the star board. they must buy at least 2% of the shares issued, something other foreign players have avoided. shery: coming up in the next hour, we will look at how investors are pricing in that widening crackdown by china with life and liberty indexes founder. south korea's second-quarter gdp print due in just a few moments time.

our guest joins us to break down those numbers. that is it for "daybreak australia." "daybreak asia" is next. this is bloomberg. ♪

shery: hello and welcome to "daybreak asia." i am shery ahn in new york. sophie: i am sophie kamaruddin in hong kong. we are counting down to asia's major market opens. haidi: i am haidi stroud-watts in sydney. bitcoin falls back. amazon denies plans to accept