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. i am shery ahn. our top stories this hour. jay powell says the fed has taken the first dive into taper talks but there is ground to cover before it happens with inflation still transitory.

china securities regulator meets with bank executives trying to stir fears about beijing's corporate crackdowns. plus facebook sales beat but shares fall in late trade after the social network warns of slowing revenue growth. haidi: let's get to our top story now. the fed is moving closer to when it can stop supporting massive -- kathleen hays is all over this. what did we find out? do we have a clearer path now? kathleen: it is a couple of things, may be a few things, pretty clear from what the fed said in its policy statement from jay powell's remarks at the press conference today. the fomc is looking at what the timing and pace of tapering its bond purchases is going to be and we have inflation well above the fed's 2% target. it looks like the metrics now for achieving the necessary substantial further progress towards his goals depends on

jobs. here is what powell said today. >> what would substantial further progress be? i would say we have some ground to cover on the labor market side. we are somewhere way from having had substantial further progress with -- towards the maximum employment goal. i would want to see some strong job numbers and that is kind of the idea. kathleen: joining us now is the former atlanta fed president, dennis lockhart. great to have you back with us. what did you take away from jay powell's presser today, particularly when it comes to tapering? >> i agree with you that emphasis on the employment picture came across, when that question was asked, he went to employment first. i don't know if you can read a lot into that speaking but it

strikes me that employment is front of mind on the part of the committee. i think the committee has sort of an image of the pre-covid picture of 3.5% unemployment and participation was substantially above where it is today and i think that that is what they are really aiming for is to try to return to that world as quickly as possible. kathleen: let's listen to something else jay powell said because it struck me that he said we have got to see the improvement in jobs but he's also saying despite the fact that there is a delta variant which he said creates risks, that this stronger job is not just an outlook that it is coming soon. let's listen to this. >> we are clearly on a path to a very strong neighbor market with high participation, low unemployment, high employment, wages moving up across the spectrum, that that is the path

we are on and it should not take that long and macroeconomic time to get there. kathleen: does this mean that we are going to put even that much more focus on the monthly jobs report if we get a couple strong one million plus payrolls reports in a row, which some people are looking for, does may be move up the tapering or make sure it gets announce and started by the end of this year? >> i did not hear any encouragement to the view of an early tapering decision and an early launch of tapering. what i heard in the press conference and what i read in the statement was really more of a stay the course, patience message, and monitor developments as they come along, but not, you know, not an acceleration of the tapering timeline. i did not get that from today's

press conference. it seems to me that although he thinks that there's going to be substantial progress, he also emphasized that there is a long way to go. in the same breath, he was both encouraging and optimistic and at the same time, said it will take a while, it seems to me, to actually satisfy the committee that they have achieved what they want to achieve. >> i want to throw up a chart which i think is telling. u.s. real yields tumbling to fresh record lows. this comes as we see breakeven inflation rates continuing to grind higher. what is this telling you about what market expectations are and what fears are? is this about the inflation premium or worries over growth? dennis: it is a mix of factors. jay powell and his press conference was asked a question about the yield curve and 10

year yields and in so many words, he said it's a lot of things but i do not fully understand it. if he does not understand it with the staff he has to attack that question, probably a little bit presumptuous of me to give you an explanation. i think there are a number of things at work. i do not think it is a downgrading of a growth story although growth will stabilize and will come down from the second quarter. i don't think it is a negative view on the outlook for the u.s. economy. i think that there are flows into treasuries both from abroad and in domestic vehicles that invest in u.s. treasuries. those flows are creating lower rates. spreads remain relatively tight so again, i don't think it is a negative picture necessarily.

there may be some buying of the transitory inflation argument as well reflected in these rates. haidi: i'm starting to wonder what transitory actually means, if it just means not forever or not indefinite. you say that you are watching the delta variant very closely in australia. we are back under law down. when you take a look at places like texas that are seeing 10,000 cases a day, the return of the mass mandate, how much of a meaningful impact does that have on all launches ahead, variation of the pandemic recovery that we have been expecting from the u.s.? is the risk that they could be one step backwards? dennis: it is certainly a big concern and it is moving now as a concern about the direction of the economy. jay powell said something quite

interesting in the press conference. he said essentially that with each wave, the implications for the economy seem to be diminishing. that is my rephrasing of what he said. in so many words, he said it is really not something yet that at least the fed is going to consider a change of direction in the economy. obviously, you watch it, but he did not seem overly concerned. of course, it would not have been very positive for him to call out the delta variant. what i notice is he on the committee talked about the virus but did not actually use the term delta variant. kathleen: when you look at the time on tapering, did you

fine-tune your view at all? paypal said it was their first deep dive into this. they are looking at the timing. they are looking at the pace. he said they would need a couple more months on jobs and he wants to see strong jobs. he also said do not presuppose anything about jackson hole. he said i am just starting to write this speech. people said it means nothing. i took it to me and maybe he is going to, fine-tune or give more of his message at the end of august. dennis: i came away with a view that we will not hear much about tapering in his beach at jackson hole. one reason is because the committee is not there yet. he speaks for the committee but he really is not going to give a speech that signals a decision the committee has not made so i would pay it is more likely, the earliest september meeting, the press conference following the september meeting, and i think

the committee may be watching the delta variant. they want to see evidence in the fall that participation and employment has begun to strengthen, that people have taken jobs who may have stayed out of the workforce over the summer time for a variety of reasons, and so you think about the data timeline. you have to get to early october to have a jobs report on september. and you have to get to early november to see what happened in october. it may not be a clear picture. i sensed a very deliberate process that is not going to be rushed in the decision on tapering. kathleen: i a our bloomberg chart, a real simple one, the core cpi year-over-year. in the latest report, up 4.5%. the headline, five point 4%

year-over-year. powell said it's transitory. you agree it is probably transitory, but i want to ask you about the fed may be making the -- may 2015 to 2018. janet yellen had a forecast for rising inflation. when it was only at 1%, they started raising rates. now jay powell and his team see inflation that has risen above. they say it will start falling back down. do they run the risk of moving too slowly just as much as the yellen fed moved too quickly? dennis: central banks always run the risk of misreading the situation and having to catch up. i don't think you should overplay that. i really do not think that the risk of inflation getting away from the fed or hyperinflation or, you know, really persistent period of excessive inflation, i

don't think that is a very high-risk. he has emphasized and i agree, they have tools to deal with that. they can really slow down the economy. if they have to. and so, i'm just not, you know, too much concerned about that risk. it is always there. the big concern is that they would get may get so far behind the curve that they have to slam on the brakes, so to speak. i do not put a lot of weight on that scenario. >> what do you think is the biggest risk to the outlook and is it the delta variant? is it the job market stumbles, that it does not pick up because people are still reluctant to go back to work or because they don't have the skills for a new job? what is the next big signal for the fed, for jay powell? dennis: the disappointing employment picture in the fall,

which is going to elongate the period before tapering and ultimately for liftoff. a sort of ambiguous economy that could develop where you are not getting clarity, not getting clear signals, and a lot of crosscurrents in the economy, and a resumption of measures taken to deal with the coronavirus with the delta variant. that is the downside, it seems to me. if you do not think that that is likely to happen, and policy terms at least, not likely to happen, then you have got a very strong economy with a very positive outlook and in all likelihood, they will continue to make progress towards their goals, they being the committee. in a reasonable timeframe, the forecast that they have presented, quarterly forecasts.

it is quite reasonable, it seems to me, so you would see continued progress in 2022 and in all likelihood, conditions allow raising rates in 2023. what i would emphasize from my reading of the press conference and my situation is that i do not think this committee is going to be rushed into action by noise and markets or by loss of people arguing that we are entering a new period hyperinflation or whatever. i just do not see that. this is a very steady committee and they will act when they have to, when they need to, but otherwise will really let this economy evolve and hope to of course achieve their objectives.

shery: dennis lockhart, -- haidi: dennis lockhart, always great to have you, and of course kathleen hays. we are watching these developments on the senate vote for infrastructure. shery: something that will have an impact on the broader economy. it will begin debate on that bipartisan infrastructure deal. this is in order to begin consideration of the legislation which has yet to be completed. the release of the bill text will happen later in the coming days but we know that the deal calls for spending more than 100 billion dollars on roads and bridges and other major projects, not to mention $40 billion to modernize transit. we are talking about all in all a $550 billion infrastructure package. now, the senate voting to begin for consideration of the massive plan after bipartisan group of senators and the white house reached a tentative agreement. you can see chuck schumer now

giving remarks as the senate was voted on that bipartisan infrastructure deal. senator schumer saying they still want to pass the budget plan on this work period. let's turn to sophie for what to watch as we look ahead to the opens there. sophie: after the fed update, we are seeing potential caution in asia. the dollar holding a three-day drop while u.s. futures are mostly lower here after we saw the mixed session on wall street that saw the nasdaq closed higher on alphabet's strong rally on its earnings rebound. we have a lot of earnings due as well. samsung and lg. fortescue reporting record iron ore shipments alongside the rally we have seen in iron ore price is. keep an eye on what is going on with chinese markets which have

stabilized as policymakers attempt to calm fears. bny mellon flagging the downside risks are certainly firm for the currency amid these regulatory uncertainties. we have seen dipped buying action which has added 1.2 billion dollars to net inflows as of tuesday. china internet etf after the csi 200 pulled back from the edge of a bear market, shery. shery: having an impact on the markets, that bloomberg scoop, the regulator convening a virtual meeting with investment banks, trying to ease fears about beijing's crack down on the private education industry. sally bakewell joins us now on the line. what do we know about this meeting? sally: the aim seems to have been to assuage investors concerns that the dramatic reforms the government

introduced might actually only be limited to private education and not extend beyond that. china has banned companies that keep them from going public and it was the government's most extreme step yet to iranian companies. the steps sparked a huge selloff. it really fled from the industry and other internet stocks. in a bid to stem concerns and reassure investors that china's vice chairman helped in this call with several international banks, where we understand the mentioned -- method was -- message was relayed. education policies are not meant to hurt companies in other industries. haidi: the broader desired

effect is a demographic one. what are we seeing is a short-term effect so far? sally: there steps seem to have worked -- their steps and measures seem to have worked. the csi 300 index rebounded from early losses. the china index also gained so those indicate that those fears investors had that this may be a broader attack on profitable industries are starting to subside. indeed, there was -- many believe beijing will not seek to annihilate an industry that plays an essential role in grooming its workforce but this does drive a lot of fear among investors. haidi: sally bakewell. still ahead, we take a look at the sports scene during the pandemic and how it has been impacted. the asia strategy with the executive vice president, scott leavy.

facebook taking a beating in extended trade. a disappointing earnings report. we get the details, next, and the growth forecast. this is bloomberg. ♪

shery: facebook shares slipped in after hours trading after it took a cautious tone on the outlook for the rest of 2021. the social media giant says it is facing ad targeting headwinds including apple's new rules on its platform. >> we know businesses are experiencing challenges because of platform changes. we want to make sure they can continue getting great results through personalized ads long into the future so we are collaborating to develop new technologies to help minimize the amount of personal information we process while still allowing us to share relevant at and measure their effectiveness. shery: ed ludlow, what was the

big takeaway for investors? ed: facebook is clearly concerned about the platform changes on ios and apple. there was no clear evidence that the slowdown the company see in the second half of this year is directly attributable to those ios changes. facebook is vying for a really high base. they far outpaced the rest of the big techs. people are not staring at their screens as much as they were. they did see really big user and topline growth throughout that period and it is not entirely clear what would grow that going forward. especially in north america, user growth was pretty flat in the quarter and investors seem concerned by that. shery: what about user growth going forward? what else did we find out? ed: they are thinking about products. they would not put a specific number in but zuckerberg and company are investing billions in initiatives like

virtual-reality, augmented reality. mark zuckerberg talking about what he calls the meta-verse, a new form of internet where you have this ecosystem of landforms that facebook largely owns and start to use them. the question is what is the incentive for users to go back? facebook experimented with combining messenger with whatsapp. what grows ad revenue? the linkage between user growth and revenue and that is what is in question. impressions were down but not up as much as they had hoped in the quarter. haidi: pretty good quarter for qualcomm. the ceo had a positive outlook when it comes to the chip shortage. let take a listen. >> -- let's take a listen. >> as i said before, we are still seeing more demand than

supply across our business but things are continuing to improve on the supply side consistent with what we said and that is reflected in our guide. haidi: really bullish forecast as well. ed: a similar thing to apple. handset adoption plaintively driven by 5g. that is qualcomm's bread and butter. they seem to be doing well in other areas like automotive. the ceo told bloomberg they are approaching $10 billion of sales in those new categories. supply constraints are are a good problem to have. there was some weakness in markets like india and china that they referenced in the lower end of the market. we suggest they are doing well in the more expensive and higher priced chips and when the market recovers out the end of the year, they will be able to sell higher volume which is a nice problem to have. haidi: ed ludlow.

light at the end of the tunnel when it comes to the chip crisis perhaps but it feels like one step back for parts of the u.s.. the mass mandate from the cdc, soaring numbers of new cases, particularly in places like texas. over 10,000 a day. apple stores, more than half of them across the country will be requiring masks for shoppers as well as staff and this is interesting because it goes back to what our previous guests said in the first hour. does this have an impact on consumer behavior, discretionary spending if people have to put on masks to go outside again? shery: to be honest, i have not really felt any different since the cdc guidelines, at least not here in new york city, but if this really worsens and the delta variant continues to spread, we could start seeing the impact when it comes to going out, eating out, shopping, going to shopping malls as well. we will be watching what is happening in the pandemic space very closely as we get a check of the business flash headlines as well. and the surgeon those infections

worsen google as well to delay their office return date from september to mid october. the company will require workers to show proof of vaccination. the ceo saying that google will extend paid leave for parents and caregivers through the end of the year. shares fell as much as 10% after reporters had fewer than expected new users. they are blaming the pandemic for slowing subscriber growth. it added 9 million monthly active users in the period, falling short of its own analyst forecasts. the advertising business is jumping 110% on direct sales and podcasts. boeing surprised investors by reporting its first profit in two years and sales that beat estimates. the earnings pushed share price to the best intraday gain in four before closing slightly lower, a sign that they may be emerging from a deep slum caused by the pandemic and issues tied

to its plane. boeing halted large-scale job cuts as it gears up for production increases. as covid cases continue to rise, we will be discussing the impact on the world of sports.

vonnie: this is "daybreak asia." the federal reserve kept its benchmark rate unchanged but officials signal they are moving closer to tapering their massive support. the fomc says her current rate of asset purchases will continue until substantial further progress has been made but noted the economy has made progress towards that end. the fed also said inflation risks are to the upside but remain transitory. china's securities regulator convened a virtual meeting with executives, trying to ease

market fears about beijing's crack down on the private education industry. sources tell bloomberg the hastily arranged column was led by csrc's vice chairman. we are told the takeaway for some bankers was about the change in education policies and was not meant to hurt other industries. iran's supreme leader called the u.s. stubborn for discussing tehran's missiles and regional influence during stalled nuclear talks in vienna. that could signal more trouble ahead for the negotiations. the president-elect, said to be sworn in next week, said he wants to return to the deal. the u.s. is blaming iran for the nuclear impasse. norway -- covid resilience ranking, usurping the u.s. as the best place to ride out the pandemic. it has administered enough shot to vaccinate half its population. switzerland and new zealand took the second and third spots. the u.s. takes the fifth place.

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'm vonnie quinn. this is bloomberg. ♪ shery: coronavirus cases continue to rise in japan as the olympics go on. nationwide figures are expected to lead to more than 9000 mile total infections have reached 169. let's discuss the business of sports during the pandemic and the nba's asia fettuccine with executive vice president and managing director at nba asia. scott, great to have you with us. the nba has experienced asian games at the head of the pandemic here in the u.s. seeing what is happening across japan, what would you say are some of the safety measures that are needed in order to really carry out these games safely? scott: good morning. it is great to be with you. it has been amazing to watch the start of the olympics.

it is great to have the athletes competing again and performing at the highest level. the ioc has put in some of the strictest pandemic measures that they could possibly put in. going back 1.5 years, when we established the bubble in orlando and started our season, we had to focus on making sure that our players, our staff, and all the administration was going to be safe and it was going to be an environment where they could comfortably perform at the highest level which is necessary in the olympics and the ioc has done the same thing, testing every day, and making sure that he athletes have whatever they need to be able to focus on their sport and compete in a safe environment. shery: you have wide presence across asia, whether it is through the business of the nba or through the junior mba program that you pioneered as well. what are you seeing in terms of opening up given that we are seeing delta virus cases rising as well? scott: no question. it varies depending on the

country, and every country is at a different page so what we are trying to do is really focus on bringing the sport of basketball to the countries however we can. if we can do participation programs through our junior mba on the ground, we will do that. we moved a lot of the program to a virtual experience now and people are joining us through our online programs, online academies, so that we can continue to allow people to enjoy the game of basketball, to train our trainers, the teachers in the schools, so that people can continue to play the sport and enjoy it while they are limited in their daily activities. haidi: what are the expansion plans when it comes to china? i know that there were earlier difficulties. there were issues with allegations of abuse and misconduct. has that been smoothed out? scott: our relationships into china continue to grow. we are focused on developing the sport, working with local

basketball infrastructure, and the local school system to make sure kids have an opportunity to play. we will continue to do that. we are excited about the growth of basketball as well as, you know, development of our presence in china. haidi: the interesting thing to me is athletes engaged in political discourse has become the norm when it comes to athletes and the sporting arena in the u.s. how does that fit into when it comes to sensitive issues in this part of the world, when the houston rockets dm tweeted about standing with hong kong. does that pose a risk when it comes to investors and sponsors? scott: our players are individuals, as are the rest of the nba staff and management and we want our players to be active in social justice issues. the league is active, our owners are active, and we want to play our part in making sure that

social justice is at the forefront of what we do, part of our dna, and we encourage everybody to be active and they what they think and make sure we are having a positive and lasting impact on all the communities where we do business. shery: when it comes to the 2020 olympics right now, what was the nba's strategy surrounding it? basketball has really had a big -- has been a big part of the olympics but this time around, it seems team usa's performance seems to have disappointed. scott: it is early stages and the team has come together relatively quickly. three of the players, the men's u.s. basketball team, they were competing in the finals just a few days ago, and we have a record 120 one current and former nba and wnba players featured in our national team roster so when we think about the olympics teams, we are looking at nba and wnba players who are playing virtually everywhere. eight of the 12 women's teams

have wnba players and 11 of the 12 men's have nba players so this is a record number. of course, we have the introduction of three on three for the first time in the olympics and i would like to congratulate the usa women's team and men's team for winning the first ever metal in three on three basketball. shery: when you take a look at how challenging just getting these athletes to 2020 has been, the changes and disruptions to their training, you take a look at what has happened with simone biles, the controversy in terms of naomi osaka pulling out from the french open, do you think the expectations around what the world expects out of top-performing athletes will change going forward? scott: this is something i am very proud of. the nba has been at the forefront of working with players on mental health. we have programs in place all year long. we are listening to them, making adjustments to make sure that

they have whatever they need. during the pandemic, we have very specific issues to focus on, but this has been going on for a long time. many of our athletes like kevin love and marta rosen have spoken out on that -- on this issue and that has brought tremendous focus on this and it is something where we want to be involved and make sure our athletes have what they need and that they can perform at the highest level, and we need to support them. haidi: so great to have you with us, scott leavy, executive vice president and managing director of nba asia. coming up next on "daybreak asia ," the chip crunch is impacting corporate industries. we will be hearing from the u.s. commerce secretary about the u.s. strategy to address the shortage. this is bloomberg. ♪

shery: breaking news. we have those final earnings reports from samsung at the moment for the second quarter. consolidated net beating estimates, coming in at nine point 5 trillion won, -- 9.4 5 trillion won. operating profit, 6.9 3 trillion won. and much higher than expectations. we have more breakdowns when it comes to the divisions.

i.t. and mobile communications profit. a jump of 66% year on year and also much higher than expectations for most of the division. it is really a beat. the display panel business also coming in at 1.2 trillion. this is much higher than the expectation of 300 billion. consumer electronics also profited at one trillion. the headline number would be second-quarter consolidated net coming in at 9.45 trillion won, higher than estimates. let's break down this number with our guests. we were expecting pretty strong numbers given what we saw in the preliminary numbers. how do these stack up? >> that is right. it looks like in the second quarter, samsung has done better than expected with its memory chips shipments and

profitability both improving and its foundry business also recovering from the austin, texas plant shutdown due to the statewide blackouts. not only its memory business but also its smartphone business looks like it has been beating expectations. we are just seeing the statement from the company and we will have more details on the company hosts the earnings call in about one point five hours. the company is expected to be given the outlook and more details about its earnings during that time. that is better than the strict views for now for the second quarter. shery: what -- is the investor -- haidi: what is the investor view on -- haidi: what is the investor view on this? youkyung: investors and samsung probably have not been very happy so far this year unlike

investors in its rival such as lg electronics and south korea, which they saw more than 20% return so far this year, but samsung investors have the stock price fall about 2% as of yesterday, so the samsung electronics has not only been underperforming its rival but underperforming the kospi, the benchmark index. investors will probably be more interested in how the company looks at the memory chip and semiconductor outlook for the rest of the year as well as for the demand outlook for this year and next year. they are expecting samsung to do a lot better than what they have been doing now given that the companies stock price has today record level in january and since then, it has been going sideways. and what analysts have been calling samsung stop, one of the

most boring of the year. that is probably not an understatement given how it has been performing but samsung will also have not been alone among chipmaking rivals such as psn cn intel, seeing their stock price fall even after reporting strong earnings and giving a robust outlook for the future. haidi: youkyung lee, our asia stocks reporter. you can turn to your bloomberg from on samsung at tliv . you can get commentary and analysis from bloomberg's expert editors. let's take a look at how we are setting up for the market this thursday session. sophie: some analysts saying samsung shares have been boring. we have seen the market weight being whittled down to 18% so far this year and we are seeing a lot of emphasis on earnings as market watchers for south korea way the impact of the virus. -- weigh the impact of the

virus. today, we are going to get report cards from the likes of lg electronics and a financial company. it is a busy earnings calendar in japan. you have panasonic reporting today. ahead of that, nikkei futures in singapore gaining some ground while the yen is holding gains below that one can handle. jay tv's, we may see some moves higher potentially as the pickup in japan's infections weigh on the growth outlook which is the theme in australia. more economists expected the rba to delay tapering. morgan stanley expecting the tapering path to resume after november which should keep downside pressure on the aussie dollar which has stayed below the 74 handle early the session and after the asx 200 slipped from a record high on wednesday, we got to see miners have a boost, delivering strong exports for the june quarter.

haidi. haidi: companies are seeing earnings hit by this shortage of microchips but relief could be on the way for a bipartisan infrastructure deal working its way through congress. gina raimondo told us serious investment is needed to enhance america's capability to produce leading-edge chips. >> fundamentally, the only way to solve this problem is we need to make more semiconductors in america and there is a bill working its way through the house right now which is a 52 billion dollars investment in the semiconductor industry and that is absolutely essential, david, in order for us to solve this problem for the long run. fundamentally, we have a lack of supply. we don't make any leading-edge semiconductor chips in america, zero, so we have to stimulate that production. clients that $52 billion bill is part of a larger bill working its way through congress had let's assume for the moment that

that gets done. you said we need to make them in america. does that include overseas companies making them if they have that? the larger producer's tsmc. would you be in favor of giving them money as well? gina:gina: i would certainly be in favor of them having operations in america, absolutely. samsung, tsmc. there are companies that are in allied countries and you know, we certainly want them operating in america and producing chips in this country, yes. >> we have a significant chip issue but there are other supply chain issues as well. i know you are monitoring what is going on. where have you seen other problems in the supply chain that need to be addressed? gina: particularly in home building supplies. you know, lumber and all the related supplies. lou, adhesives. you see it playing out. home prices are higher. if you go to home depot or lowe's, you will see they are

priced a little bit high and that is all because of the lack of supply, just disruption in the building supply chain mostly due to covid. we are working through that. the president convened a supply chain disruptions task force which i am on and we are working it feverishly every day and fortunately, you are seeing improvements and i think we will continue to see improvements in supply chains as we put the pandemic in our rearview mirror. >> the overall mission of the congress department is to create conditions to promote economic growth and opportunity. let's talk about the labor force. how challenged are we in the united date and labor for -- states and the reports? they are having trouble getting the right workers, skilled workers, for the jobs that are available. gina: it is a real issue and there are a few components. one is women are still really struggling to get back into the workforce because of a lack of

child care, a lack of quality, affordable childcare, and that is why the president is so strong on this point. we need to invest in the childcare infrastructure so women can fully participate in the workforce and be productive. also, we have a skills gap. every company i talk to, quite literally every one, says they have many jobs available for people with tech skills and they cannot find enough people which means we have to invest in job training, tech apprenticeships, and really help americans get up skilled so we can close that skills gap. shery: youkyung lee --gina raimondo speaking to david westin. breaking news. we are hearing that the robinhood ipo is set to be pricing at $38 per share. that would be the bottom of its marketed range which was $38 to

$42 per share. robinhood will start trading on the nasdaq stock get under the symbol hood. they reserve 35% of their shares for their app users. fitting their self-described mission of democratizing finance, but robinhood has also warned in its finding that because of this high retail allocation, this could lead to volatility in the shares. bloomberg has learned that robinhood is pricing its ipo at the bottom of the marketed range of $38 per share. plenty more to come. this is bloomberg. ♪

shery: we are counting down to the start of trade in tokyo. tons of earnings out today including panasonic, renaissance, and another company. nissan has been raised to buy at cls say. -- clsa. we are also watching softbank. it is said to be selling a large part of its stake in uber to cover those losses in their investment in didi global. haidi: what a disaster that

story continues to be. we will be watching softbank for sure. let's get more in san francisco. what do we know about this stake sale and what are they trying to be here? >> good to be with you. softbank sold about one third of their stake in uber. pretty significant position that they are selling off. uber has not performed very well recently. year-to-date, it is actually down. it is barely out from where it first went public a little over two years ago, and it is not even that much higher from where softbank first invested in 2017 so softbank is clearly taking a look at this investment and saying maybe this has not been a good thing to be so invested in. also recently, softbank lost a lot of money on didi, the ridehailing business in china, which recently went public and is facing scrutiny from chinese regulators. our understanding is that this could help cover some of those

losses. in uber also invest in didi and was down because of didi's falling shares due to the chinese regulators. shery: what does that do to softbank's earning outlook? katie: on the one hand, it means they are not as tired to uber. softbank has a lot of different investments beyond just uber so they were never completely typed uber but i guess if you are negative on uber, not so bullish on the investment, you would see this as a good thing that they are reducing their stake there. hard to say how much of an impact this will make on earnings. shery: does it have implications for softbank's broader investment strategy if they are lessening the stake? katie: sure. softbank, you know, they have definitely been taking a different tone in their silicon valley investments recently. they have been getting in a little earlier and not doing

quite as high evaluations that they were so famous were a couple years ago. at this point, that has become the norm in silicon valley but they have them high-profile disasters with we work and zoom pizza and other things that were kind of embarrassing them so maybe they are taking a look at some of these riskier investments they have made and they are looking to make different kinds of investments. certainly, they were huge in transportation with uber and didi and other similar businesses around the world, but that looks like that has not been such a good investment for them and they are changing their tune. shery: softbank at the lowest since november 2020. katie roof with the latest. facebook you to second quarter sales and profit estimates and warned of headwinds in ad revenue. the social media giant said growth to all has pandemic field advertising gains subside and it

cautioned that ad sales would be hit by apple's new rules which require user consent to track data. shares fell, reflecting concerns that sales growth may slow as people spend less time on their devices. the monetary authority of singapore is not extending restrictions on dividends from local banks and finance companies headquartered in the company as the outlook for economic recovery improves and local vendors maintain strong issues. the monetary authority asked banks to cap 2020 dividends at 60% of 2019 levels to support the economy during the pandemic. morgan stanley is the latest wall street firm to offer a pay raise to junior employees. a source tells us first-year analysts in the investment banking division will earn at least 100,000 dollars while those in their second year will make $105,000. coming up, -- is set to report

its first set of earnings since its hong kong listing asked month. we will be joined by the ceo. plus, we will get some insight on korea's semiconductor sector with a macro strategist. the market opens in sydney, seoul, and tokyo are next. this is bloomberg. ♪

♪ anchor: hello and welcome to daybreak: asia. taking a look at the major markets opening across asia. starts again after the more economic progress is needed before tapering can begin. china security regulator needing

bank executives to explain beijing's corporate crackdowns. changes in the covid resilience ranking as the delta variant gives the world a reality check. that's take a look at how we are setting up your sophie: taking a look at japan come markets opening up here have virus concerns against earnings. that could be offset with delivering profit including nissan. reporting today. nikkei adding 6/10 percent. yuan is trading just below 110. jgb's are climbing. the olympics are underway. keeping a close eye on stock bankshares as well. starting trade this afternoon. 1 billion dollars. switching out the board in south korea, we are waiting on the ipo price and waiting on the august bond issue is planned from the government.

earnings in focus. it profit estimates for the second quarter are strong. we are seeing shares move to the downside of a quarter of the present -- by 0.25%. the kospi bouncing after gains for a third session. the korean yuan has an 1150 handle against the greenback. you're seeing a bounce back of 8% at the wednesday close while the aussie dollar is holding below 74 and morgan stanley down as the rba is tapering until at least november. the fed's commentary around this time table. you have the u.s. 10 year yields trading at 123 early in the asia session. jumping 2% this morning after a reported strong expert during the dream quarter accompanied by a surge in iron or prices and with china market stabilizing,

the yuan holding below 240 this morning. going forward certainly -- risk for the u.n. -- yuan remains on the downside. sheri: our next guest is focused on equities in korea, taiwan, and mainland china. micro strategist. thank you for joining us. this coming out a time when we have the south korean government talking about providing $5 billion for the semi conductor industry. samsung showing strong semi conductor fields and their latest earnings forecast. what are you seeing in terms of this industry and its potential? guest: thank you, sheri. we think the industry still provides a little -- a lot of

upside to investors going forward. we saw very significant paths between earnings. that really hasn't translated to significant sector releases. we think given the overall macro fundamentals of the country and positioning by the korean semi conductor industry, in terms of their position as a supplier to the rest of the world, weather is a potential shortage in the industry, they're looking at taiwan and we have potential positive catalysts in the future of -- for new products for smartphones and continued high demand for chips.

overall, we think the outlook is pretty positive for these industries. there will be some moderation in sales growth going forward. we think, given the performance so far, we think the sector will do well. sheri: is that why we are seeing some pressure on samsung already? this chart on the bloomberg showing that for the first time since march, samsung electronics shares are getting near a very technical level that could actually lead to pledging further. we have strong results for the second quarter and yet samsung continues to be under pressure. mr. lee: it's true that if you think about the overall trajectory in 12-24 months, potential moderation is likely. i think the investors are translating that number to the sales expectations for kroea.

-- korea. that also means there has been a compression in the multiples despite very strnog earnings numbers. the valuation has become less demanding. we think obviously markets have focused on this rebound from the pandemic but for the long term prospects of these companies and their position in the industry, not enough attention has been paid especially since samsung is getting into other things and there is tremendous government support going forward. it i think there needs to be global support as well. we think that will play out. it will be a catalyst for the cycle. we think it's a a little too discounted.

sheri: speaking of heavily discounted, let me move to the china situation because you guys have significant exposure when it comes to asia holdings. i is that holding up and how has your strategy change? mr. lee: well, the first thing to highlight as we always approach these matters from the perspective of a diversified portfolio. in that portfolio, we have a strong thing for the -- they're still has been a little negative impact for sure. but we think the segment is well-positioned for recovery because -- the biggest tech sectors that will get benefit from the government support, the y are positioned to benefit from a shift in onshore macro policy. we are comfortable to maintain

this position even though there has been negative pressure. we think the indiscriminate spell has left interesting opportunities in the shares market. not only that market. for adl's, there is an access here -- fear here that will go away once the chinese tone down their aggressive rhetoric on the sector, which we see salready as from the gathering of banks by the authorities and the securities concern. we think the medium picture is still of recovery in the near term technicals remain. keeping a look at this elevating.

sheri: there is sort of a scramble in the communication in the take away needs to be the targeting of the education tech stocks was an isolated case and not broad-based crackdown. is the communication an issue in terms arrest care because i think a lot of investors probably would have been coming if this meeting had been given before the policy crackdown was released. mr. lee: as investors, we always go for communication, but we have to understand there is an element of shock here. obviously we're talking about this in hindsight but the regulatory framework in china has been very, very light for tech companies for many years. not many investors will understand. if china has created its agency and chargte of anti-monopoly

investigations. administrative work. state administration for market regulation only three years ago, to out -- 2018. new agencies, i think there is an incentive to be aggressive. there are issues like this. you know, i think there is always a takeoff in creating new regulations but it is fully understandable. china wants to kind of enhance its regulatory framework and i guess a bit of coordination is understandable. i think going forward, like we have seen in other cases, communication will become more smooth and we expect toning down

going forward in the next 12-24 months. this is our base expectation. sheri: asia micro strategist. vonnie quinn with the first word headlines. vonnie: the senate has voted to move ahead on a bipartisan infrastructure package. president biden and a group of senators earlier reached agreement on a high -- $550 billion planet. will enough senators support the passage? it sets the stage for the next debate over bidens ambitious 3.5 trillion dollars spending plan including childcare, tax rates, and health care. lawmakers backing a bill to help taiwan regain observer status after the world health organization citing public health concerns during the global coronavirus pandemic. the island has been locked out of the annual assembly since the 2016 election.

beijing says it represents taiwan and its national conferences. he most recently served as vice foreign minister. the two largest economies are locking horns on issues from trade to technology, human rights, and the south china sea. iran supreme leader called u.s. sovereign for discussing the regional influence during yuko talks in vienna. it could signal more trouble ahead for negotiations. iran's president said he wants to return to the deal. the u.s. is blaming iran for the nuclear impasse. level news, 24 hours a day, on air and on bloomberg quicktake -- global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ sheri: nissan jumping 7.4% at

one point. best day since february 5 in the fifth session of gains. it posted a surprise profit in the last quarter and raised forecast for the year. it saw navy yard during the u.s. job by more than 9%. this, of course, as you see strong demand and optimism for recovery from the global chip shortage. cnsa raised the company to a buy. nissan forecasting and return to annual profit for the first time in three years. an exclusive interview with ceo of cancer drug developer christian hogg joins us to talk about the earnings as well as the outlook on biotech in china. up next, we hear from former atlanta fred president --the atlanta fed president about the fed's decision, particularly unemployment. this is bloomberg. ♪

♪ sheri: fed officials indicated they are getting closer to tapering. the bond buying program it says inflation surge its but there is no policy change. the former atlanta fed president spoke to bloomberg earlier and says the employment feature is the top priority for the fed. >> it strikes me that employment is on the part of the committee. i think the committee has sort of an image of the pre-covid pictyure of 3.5% unemployment and participation above where it is today and i think what they are really aiming for is to try to return to that world as quickly as possible. >> where clearly on a path to a very strong labor market.

with high participation, low on appointment, high employment, bridges -- wages moving across the spectrum. that is the path we are on and it shouldn't take that long in macroeconomic time together. reporter: does this mean we will put in that much more focused on the monthly jobs report if we get a couple of strong million plus payrolls reports in a row, which some people are looking for? does that maybe move up the tapering or make sure it gets announced and started by the end of this year? >> kathleen, i did not hear any encouragement to the view of an early tapering decision and an early launch of tapering. what i heard in the press conference and what i have read in this statement was really more of a stay the course, patience message and the

--monitor developments as they come along. but not, you know, an acceleration of the tapering timeline. i didn't get that from today's press conference. it seems although he thinks there will be substantial progress, he also emphasizes there is a long way to go. you know, in the same breath, he was both encouraging and optimistic and at the same time, he said he will take a while, it seems to me, to actually satisfy the committee that they have achieved what they want to achieve. reporter: dennis, i want to start -- throughout a chat that is telling. tumbling to fresh record lows. this comes as we see breakeven inflation rates continuing to climb higher. what does this tell you about what market expectations are? does this refract -- reflect the greater risk premium? is it inflation premium or is it

growth? mr. lockhart: it's a number of things. i don't think it is downgrading of a growth story although gr owth will stabilize and come down from the second quarter. i do not think it is a negative view on the outlook for the u.s. economy. i think there are flows into treasuries both from abroad and domestic vehicles investing in u.s. treasuries. those flows are creating lower rates. it spreds --spreads remain relatively tight so again i don't think it's a negative picture. there may be buying of transitory inflation argument reflected in these rates. sheri: dennis lockhart, former atlanta fed president. looking ahead to south america

-- south korea game makers ipo. this is bloomberg are -- bloomberg. ♪

sheri: the performance of the ipo because the chinese crackdown on everything from tech to property management companies to education really taking -- giving ahead. it greatly hitting when it comes to the ipo we saw in hong kong. their performance of the companies lifted the fear of the lifts across asia, an average gain of 4% when it comes to those advances over their offer price. that is really lagging behind the likes of india, japan, south korea, and thailand. this is quite the reversal. remember, any time you saw an ipo in taiwan, you saw massive share gains.

technology on its debut soared 151%. now it is below the offer price which is really quite a u-turn when it comes to the chinese markets, when it comes to the hong kong markets. not surprising given the chinese crackdown on everything from tech. we saw the tech index. the one year it just earlier this week now becoming the world's worst performer when it comes to those tech gauges around the globe. down more than 40% this year. haidi: we are watching in terms of ipo's for craft. this is the south korean gain maker. an offer that can raise up to 3.7 billion dollars. joining us now for the latest is the equity capital markets reporter julia. a lot of anticipation. it seems like a lot of demand when it comes to disappeared to see the latest in what we have seen in south korea. julia: it will be. it hasn't been exactly a

completely smooth journey. it is looking to raise up to $3.8 billion. it is likely to price at the top of the range, taking investment orders a day early. it looks like it is going well but this is still short of the previous target, $5 billion. that had to cut the target. it was off by the eon does korean financial regulator to provide. one of the issues was it was comparing itself to companies like disney, and warner music group. that was seen as a bit of a stretch comparison given that it is still a bit of a one trick pony. haidi: it is not just about crafton. we have seen regulators are cross become more step the goal about the trust -- scrap -- skeptical about the stretch valuations. julia: since krafton provides

its perspective, it is about pay. they have yet to submit the revised one. it shows they are becoming a little bit more active in terms of checking these valuations. this is probably in a year where we are seeing lots of tech related companies going public in a record year for ipo's or said to be a record year for ipo's in south korea. it -- they are checking the valuations not being to stretch. people are not trying to stretch the comparisons. sheri: equity cavity markets -- capital markets reporter julia on korean ipo's. robinhood the trading app maker that fueled the rise of meme stocks is set to make its trading debut on thursday. bloomberg has learned the company has priced shares at the low-end of the expected range of $38-42 per share. the firm performed the rut -- first round of regulatory

scrutiny tied to the game start claims. what does this tell us? >> pricing at the bottom of the range is usually is a disappointment signaling that something went wrong on the roadshow in promoting the offering to professional investors. robinhood is taking a unique approach. they are really counting on their army of retail traders to provide a same day pop in shares. that's what all ipo's hope for. the initial trading to go up and not down. thursday in the u.s. will be a test for the strategy. they're offering 55 million shares and, again, had aimed for a valuation of $35 billion. that would've been of midpoint coming at 40. we have heard from sources it is coming up the bottom of the range. a third of the chairs being satisfied for the users. it will trade under the ticker hood on the nasdaq. it is important to point out

robinhood has seen itself as democratizing finance so catering to its own traders and users is part of its identity. it is also in its ipo filing that because of this high allocati for retail investors, we could see volatility in the early trading. we should also point out that sources tell us in the lead up to the ipo, the private trading shares had traded as high is 55 and lower than that. it leaves a big question mark on what we will see in the u.s. trading on thursday. sheri: let's get you a check of the latest headlines. $3.1 billion of a stake in a block trade through goldman sachs. the largest investor wants to share 45 million shares. softbank has a significant stake and china's global would saw its share price tumble following the

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sheri: counting down to the start of trading in china and hong kong. it the obit is focused on it yet another day. we saw the return of those bit buyers. and it comes to adrs in the u.s. session, this is the robinhood cohort. we also saw that scrambling last-minute impromptu easing held by the chinese securities regulator meeting with bank executives to suit concerns that this is a broad-based crackdown. the take away, according to

sources out of the meeting, seeming to suggest the messaging was that the crackdown on chinese tech is targeted and not across other sectors. we will see if that has a calming effect on markets. take a look at how we are setting up. sophie: we're seeing a mixed bag with rest sentiment. bonds gaining ground as sections pick up in places like australia and japan were tokyo saw its daily sessions top 3000 on wednesday. the aussie dollar under pressure. morgan stanley seeing more downside risk for the currency as they say they will delay its qe t untold november. check out what is going on with stocks. gains across the board. hired by new zealand. the nikkei gaining ground but not topping the 22,000 level. the offshore yuan and focused trading around the 645 handle. bny mellon saying there is regulatory uncertainty. i want to focus on the commodity

spaces. have i and or futures heading toward the 200 bucks. -- iron ore futures heading toward $200. his help with profits for white -- minors. pinto has shopped n-- jumped to highs. price target getting raised by goldens facts --goldman sachs while jp morgan is trended feel on chairs get high-risk is dropping as much as 50% this morning in sydney after the data from a 2.2 billion dollar over. in tokyo, nissan jumping as much as may 2020. profit forecast is raised. rolling on its profit. pulling up for a look how we are seeing. etf flows for china, internet stocks, etf in the u.s. were seeing net inflows gaining

ground in july despite snake -- shakiness around the regulatory outlook. we have the internet etf adding $1.4 billion as of two-state when it comes to that. sheri: let's turn to the regulatory outlook in the education south are -- sector. private firms are moving swiftly to a harsh new reality after beijing launched a new crackdown on the sector focusing two of the biggest players. let's go to the asia tech editor. edwin, what are they saying? edwin: i think you are seeing a lot of uncertainty, a lot of panic in the markets. but we are seeing, what we have reported is just, i think, the opening moves in what is going to be a rather protracted and potentially raleigh that's really messy restructuring. we are talking the potential for spinoffs. mna activity.

some analysts have approached the possibility of the listings to comply with these new, sweeping regulations. sheri: it's hard to know how many of these players will be able to survive if a nonprofit model is really what beijing is going for. edwin: that is what is freaking out investors a little bit. the idea that beijing is targeting private business and you so mike rawlings report overnight the csrc, the main stockmarket watchdog, has caught in major investment banks to try and, and assuage investors that the fallout should be contained only to tech and private education. whether that has an effect we will see in an hour or so but as you say, going after the profit model, i think that is what is

really unnerving investors right now. sheri: we will see if the messaging has calmed investors at all. is a tech editor, edwin chan. chinese biotech firm has jumped 50% over $150 million for the first half of the year. the drug developer is backed by a billionaire, listed in hong kong last month two years after its previous attempt to list. let's bring in the ceo, christian han, who joins us from hong kong. great to have you with us on daybreak asia. i'm going to start with the returns concerned. any analyst we have spoken to have said pharma, biotech, one of the keys for desperate -- strategic sectors that could be targeted next. is that on your radar? mr. hogg: i mean, i don't know much about tech or education tech. what i do know is they have been to this relatively un-rate --

unregulated industries or sectors. the chinese government's taking steps to develop those sectors in accordance with their strategy. health care and biotech is a highly regulated industry. not just in china but the world over. we have operated for 20 years in this highly regulated industry and there are many reforms but for the most part, they have been terrific for patients over the last five to 10 years making oncology drugs available to many, many hundreds of millions of patients for the first time in china. i think health care and biotech is protected to some degree due to its well-established regulatory infrastructure. sheri: it is not just about regulation. the other side is about profits.

we have seen beijing take issue with those. we saw u.s. listed chinese biotech companies drop overnight on account of some of these worries. one of the main worries is that aging will take a look at the sector potentially want it also to be nonprofit. not even an outline concern for you, is that? mr. hogg: i think that is ludicrous. i think that we in the last six months have got to oncology drugs approved. it took us 10 years to develop these drugs. it took us hundreds of millions of dollars to get these drugs to approval and now these drugs are in the market, changing the lives of patients and helping people live longer. so that is a long journey and, you know, one thing i have seen from the chinese government in particular the biotech field over the last few years is the total focus on innovation. an effort to broaden the availability of world-class therapies for patients in china.

the chinese government is trying to make the lives of nations in china better and the lives of its citizens better. and you have an industry death the -- that requires such massive effort to create such meaningful therapies that help patients, you know, one of the reasons the industry has done so well in the last few years is because the chinese government has reformed to help innovators bring their drugs to market. of course, there is always going to be a level of pressure on pricing. there is a good balance. what i see is in china, the pressure on pricing in the pharma industry is in the dramatic space where you have many competitors -- generic space where you have competitors doing the same thing. in the innovator space, pricing is fair. if you want to get on that nrvl, you have to take price reductions by you get access to enormous patient populations. i think the track record of

strategic and regulatory reform and pricing reform in the chinese biotech space and biofarma space has been very, very clever. sheri: you mentioned many competitors doing the same thing. do you expect any consolidation stemming from beijing's recent regulatory guidelines? mr. hogg: yeah, well, i mean, in the generic drug space, these are generic drugs that many companies manufacture. absolutely. they will be consolidated. with the procurement policy of the government driving down pricing and making it difficult for small players to compete, that is not the area we are involved in. we are involved in the other end of the spectrum which is the undeveloped spectrum where we are creating novel chemical entities that are actually designed for the global market, not just the china market. chinese biotech companies today, at least the more ancillary of

them including hodge med, are trying to bring homegrown chinese innovation to the global market and that is new to the world innovation. there is no competition. we just want a drug in the market in china just this month. that is the first of its height. it is a first in class for a particular type of lung cancer. it has never been seen for in china. you know, we have had great support from regulatory authorities bringing that through to patients quickly and effectively. on the innovation side, i think everybody playing in that space is in good shape. sheri: let's talk about chinese biotech making and growth elsewhere in the world especially in the u.s. how much will that offset some of the costs -- price cuts you have to swallow in china? > mr. hogg: i'm not of a view

that on the innovative side, again, the generics are going to have to take price cuts but on the innovative side, being mute till the world therapies for patients, there is a market in china for it. the chinese government will not punish innovators for spending 10 years and hundreds of millions of dollars to create novel therapies that will benefit patients in china. they will be fair. i don't see any major concern about pricing in china on the innovativ drug side and i don't see a global push as a counterweight to a declining china market. that is not the case. the reason we are pushing our innovations into the global market is because of the potential of our drugs. these drugs that we have created in oncology have global differentiation. they are unique. they have the ability to compete in the global market and

obviously, while china represents roughly 20% of the world's, the other 80% require these therapies, as well. a few chinese companies are pushing very hard to bring homegrown chinese innovations to the global market. sheri: this is a broad question for you. taking into consideration what we have seen with the development of the covid vaccines, is that extraordinary coming together from the government, being aligned with the private sector and pharmaceutical development as well? does this change the nature of how drugs support the markets in the future or is this a once in a generation thing because of the pandemic? mr. hogg: actually, covid is a great example of how the regulators, the world over, work closely with industry to create a solution quickly and cut off years of the normal amount of time it would take to develop and bring a vaccine to market.

that is just one example. if you look at oncology, if you look at cancer, over the last 10 years, driven initially by the u.s. fda's's breakthrough therapy guidelines, where for the first time, in 2013, 2014, the u.s. fda started to accept phase two data for drug nda submissions --smaller scale studies in oncology where there are small-scale studies which would show a high benefit patients -- to patients. that took the speed of which companies can bring drugs to the market. it improved it massively. instead of 8 years of clinical trials, maybe 3-5 to get a drug to market. you have to do complementary studies after but patients can get access after phase two.

the whole pharmaceutical industry is moving -- evolving very rapidly and all of it driven by trying to meet this pressing, unmet medical need of patients with cancer. sheri: thank you so much for your insight today into the chinese biotech industry. coming up next, we look at why norway now says the top bloomberg covid resilience ranking is just ahead. this is bloomberg. ♪

vonnie: benchmark is unchanged. officials single they are moving closer to tapering. the fomc says the current rate of asset purchases will continue until further progress has been made. now that the economy has made progress toward that end, the fed says inflation is starting to the upside but remained transitory. china securities regulator convenes a virtual meeting with major investment bank executives. trying to ease market fears that beijing's crackdown on the private education industry. sources tell bloomberg a hastily arranged call was led by csrc chairman.

we are told the takeaway for bankers is the changes would target them but not other industries. the u.s. commerce secretary gina raimondo says some imported goods can be effective. she cited 2018's steel levies enacted by the trump administration as helping counter and oversupply from china. she has previously defended the u.s. manufacturers and said they have hurt their business. european union is working toward having the u.s. left metal imports by years end. daily virus infections in tokyo made a record as the delta variant continues. the capital recorded 3177 new cases. it is already under a state of emergency as the old liv-ex play out. surrounded tokyo, they made late as be placed on similar measures. japan has been criticized for hosting the games despite fears that they could turn into a super-spreader event. u.s. olympic gymnast simone biles will not defend her title

in the individual final competition. she left the event after performing of all. according to a usa gymnastics, biles is focused on her mental health and will be evaluated daily eight to see if she will take part in the individual vents. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ sheri: norway leads a pack of european nations that have leaked ahead in the resilience ranking, a monthly thing that's tracks schechter --that tracks sectors in coverage with vaccinations. let's get more from rachel chang leading the coverage. why norway and what changes we have we seen over the past month? rachel: that's right. this is the ninth month we are doing the ranking. while we do see this month, european nations have surged ahead of the u.s. in normalization, vaccination.

and containing these outbreaks. what we have seen happen to the u.s., it was a safe spot but since then we have seen vaccinations hit a plateau. we have seen a surge of doubt wreak havoc amongst the unvaccinated. in reaction, we are seeing new restrictions in the u.s. bringing them down. there is deftly a trajectory european nations and the sweet spot could be looking at in the future. sheri: it is been called the pandemic of the unvaccinated. could this become a pandemic of the vaccinated given that the delta variant is spreading? mr. hogg: --- rachel: we are seeing encouraging evidence that the vaccination is the key to exiting the pandemic. the u.k. is a good example that it opened up. infections surged past 50,000. what we are seeing is infections coming down and the fatality rate importantly staying very low.

if the u.s. can stay on that trajectory, vaccination can sever the link between infection and serious disease and death. this is the future we need where the virus becomes endemic and only the unvaccinated are at risk. sheri: rachel chang with asia health care coverage. we have plenty more to come. this is bloomberg. ♪

sheri: we've been following futures all week. they have fluctuated. we are seeing the biggest price swings in two decades, since 2002. this at a time when we saw futures surged to seven year highs and fully. -- falling. the biggest grower of coffe in the world, brazil. we see the froth concerns" temperature concerns hitting the futures market. we see the futures prices of coffee soaring. you can see there a 50% jump this year alone. it looks like vietnam will not plug the shortfall in supplies. the country is the biggest grower of beans globally but facing the pining shipments. our agricultural reporter is joining us. what is happening in vietnam?

reporter: vietnam isn't able to export much because of a working covid outbreak. that is clearly a huge talent. they have quite a severe container shortage. sending a container from vietnam to europe because as much as $10,000. that is making it really difficult for the biggest shippers to send beans anywhere. it is contributing to depleted farming inventories as well. sheri: we so starbucks asked about this on earnings this week. there is so much concern about when this will pass to the consumer. sybilia: yeah. definitely, haidi. starbuck said on tuesday they currently have 14 months of supplies covered. that is good news. the state of affairs could cause serious panic buying because the frost income is -- brazil might

not be seeing yet. its forecast for the next few days as well and severe frost can kill trees completely. if a farm needs to replug, production can take three years to get to where it was. sheri: agricultural reporter. our topic is all about hearts. coffee. a quick check of the latest business flash headlines. the words largest is looking more likely after the union told workers to reject a wage offer. the union accused the miner of pushing for longer hours to boost profits and a time with tight supplies and high prices. where the 2000 workers will vote today and it will be able to seek mediation to avert a strike. samsung's second quarter profits beat analyst estimates with the recovery of its chip foundry. south korea's largest company

posting the income of $8.2 billion. operating profit jumped more than 50%. data center operators have pushed memory prices up. amid a chip shortage and rising demand. apple will require customers to wear masks at most of its retail stores in the u.s.. it takes place -- effect on thursday and will require it -- -- apply even to those who are vaccinated. apple is responding to a surgeons -- resurgence in covid cases. apple has also pushed back a return to office deadline for its corporate workers. let's take a look as we head into the start of trading in china and hong kong. looking to see whether it can restore some comment to investors. sophie: of course, stabilization of markets will be watched. futures taking higher. when it comes to other stocks among singaporean banks after

the listed curves on dividends which is a positive surprise with restrictions expected to be elected -- lifted. flipping the board, keeping in my on china's baby related stocks planning to offer monthly subsidies to families with more than one child. switching of the page, going back to the civilization in markets for china, it is divided on whether pricing is done over at j.p. morgan. they say institutional positioning and flow indicators point to trouble ahead for tiny stocks over the medium-term -- chinese stocks over the medium-term. they say we are mainly -- possibly at the start of a new stock. -- rally. sheri: joining us for a look at the prospects for emerging markets and also for those chinese stocks. that crackdown and the repercussions there. what is it from daybreak asia. at our markets coverage

continues as we look ahead to the start of trading in hong kong, shanghai, and shenzhen. dan -by--standby for the bloomberg markets open. this is bloomberg. ♪

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and how they stay there. you don't