shery: from bloomberg's world headquarters in new york, i am shery ahn. we are counting down to asia's major market opens. haidi: welcome to "daybreak asia ." asian stocks facing a muted start as traders weigh earnings. u.s. economic data and the risks stemming from china's corporate crackdown. amazon sales fall short on the

fading pandemic bumper online sales. retail investors keeping their distance in robinhood's trading debut. shares tumbling from a lowball price. shery: breaking news out of south korea. industrial production numbers beating expectations pit month on month, a gain of 2%. the estimate was for a gain of 1.5% in this coming at a time when we had three consecutive months of declines for industrial production, and that factory gate number had been under pressure. when it comes to the year on year number, a gain of 11.9%. the estimate was for a gain of around 9%. we continue to see very strong export demand. we are getting the july export numbers, expecting about a 38% gain from the year before. this of course as we continue to see double-digit gains in the past four months in south korea as exports continue to be pretty strong. take a look at the broader markets and how we are setting up for the open because we have

seen korean stocks gaining ground for the last three sessions and we are seeing u.s. futures under a little bit of pressure but this of course after stocks rose towards record highs. we had materials and financials leading the gains here in the u.s. nikkei futures under pressure after gaining ground in the previous session. we had a little bit of japanese yen strength against the u.s. dollar and we could be seeing more yen strength if we see the 10 year yield further below those of japan. sydney futures at the moment wanting higher. we continue to see the pressure for those ongoing lockdowns. kiwi stocks gaining ground for a third consecutive session and the kiwi dollar holding above that 70 u.s. cents handle. we are awaiting the open for those chinese markets as well as we all that rebound across asset classes in china. in the u.s., we also had adrs. the depth buying we saw in the cast -- dip buying we saw fading a bit.

this of course as we continue to see that pressure from the crackdowns. haidi: are they, aren't saying, rumor mill when it comes to didi global. that report that they were going to go private, a huge move in didi shares before the pullback. let's bring in the head of research at pepper stone group and start off with the china risk. a large part of this has been the messaging that this is not about how the chinese government feels about foreign investors. it's about addressing domestic inequalities and priorities. does that ring true to you? what is the take away from this? >> people are bullish on emerging markets more generally. it is the china risk you want to be paid for and the risk premium of being involved in chinese markets when you can express a similar somatic is still very

true. you will be paying multiple for those listings and when you talk about regulatory risk, it is so uncertain so that is what you need to be competent before as a global invest there. the last couple of days, we have seen the chinese getting together with the banks and authorities, saying that this is very targeted. certain education companies that we told a number of years ago that they should not be charging in excess for after school care. and this is very concentrated on that. on that area of equality which they are trying to address now. i am not sure the international community buys it. you will be getting these balance of volatility in chinese and hong kong assets, for example. if you want to be in the space and address those themes through

text, the community is prepared to pay up for the multiples in u.s. listings. haidi: you talk about being compensated for risks. that is a big question as how steep of a discount is acceptable or makes that risk acceptable given that just a couple of days ago, it looks like freefall in terms of the uncertainties that these sectors are facing. chris: absolutely. you go into the adrs and the stocks that are listed offshore and there will be people who will be running the numbers and saying, look, you know, the risk premium is fine to get in. everyone is looking at tencent, for example, and saying what i get in under a 20 times multiple perhaps? s what we are looking at, the forward multiple. traditionally, this has been a pretty good buy. are we prepared given the situation?

are authorities going to let this going to freefall? and other factors as well. we have a high risk, looking up the valuation on that and saying i reckon we are getting compensated. when you're talking about china, there are going to be spaces that are probably going to benefit from the equality situation. companies that are deemed to be doing the right thing within that landscape will probably benefit and i think china, if you take a really simple situation, i think aligning your investment strategy or trading strategy with what central banks are really trying to achieve has worked well. the fact is, they have moved all in the same line, but when it comes to china, if you can align your strategy with what the government want, generally, you will do pretty well in that situation. shery: you said theof volatility is the most important factor. this chart on the bloomberg showing bond volatility has not crept up and it is remaining elevated -- has crept up and it

is remaining elevated. what signal does this send? chris: the move index pulled back. the bank has 62. you have seen rates, volatility. and that has been creeping up a little bit. if not at levels that, you know, generally, playing through into fx markets. if you look at the g10, the jp morgan g10 one-month implied volatility index and the fx markets, it is below 6%, not overly high. we have the vix trading 17% at the moment, a 1% move on average over the coming 30 days. the curve is not overly steep. you can go into the fact that the one-month put vol is that a premium. it is not outrageous. we have had a little bit of a rise in implied volatility and rates and bonds but it has not spilled over into fx markets, equity markets. it is, at the moment.

if you look at the price action in treasuries itself, we are in this kind of consolidation phase. there is this big argument. some people are making their case that they could get 1% on the 10 year. we get a good payrolls number. the term premium could become less negative and push back to where we were in a week or two and that could see as above 131 and maybe into 140 in a week or two's time. we are in that no man's land and the rates market needs to reveal itself here. shery: what did the fed signal this weekend how are markets going to react in the next few months as we continue to hear about taper talks and where the fed is headed? chris: yes, there's not really been much of a move in the euro-dollar curve. i think the market is pricing in that first -- talking interest rates, talking about the first rate hike being priced to lift

off in late q1 of 2023. that is the more interesting issue is when lift off is going to happen. in terms of what i heard from the fed, i sit probably more in the q4 camp that will get a formal announcement so that puts the december meeting and because that is when we get the dot plot projections and the economic projections playing through so i will probably sit in that camp and there will be signals playing in jackson hole in the september meeting and the question we have got to ask as investors and traders is when we get that formal announcement, will there be any kind of shock to the system? i suspect by that time, it will be so well-documented and priced in that it should not do too much. we are looking at term premiums now. that is really important now because we got up to -14 basis points recently. we crept down to -32 basis on term premiums and that kept the

10 year nominal treasury back to the levels we are. if we see term premiums moving less negative, we probably could see some steepening of the curbs. we could see nominal treasuries moving up into payrolls week. shery: chris weston, always great having your thoughts, head of research had let's turn to amazon -- head of research. let's turn to amazon giving a lackluster sales forecast. revenue missed analyst expectations had let's cross to ed ludlow for more on this. what did amazon attribute this to? ed: they beat on profit in the current quarter but what investors are paying attention to is the outlook going forward. you guys may have a sense of deja vu. apple and facebook. the story is that growth is slowing. the pandemic fueled boost that amazon has had in e-commerce is coming abruptly to an end and what amazon had to say simply is

that with vaccination rates going up, people are venturing out of their homes and not buying things online at the same level that they were previously. the comparables from one year ago are harsh. we were hunkered down at home, buying lots of things to e-commerce platforms. that trend is coming to an end even though it is higher-margin business is away from e-commerce as well. haidi: and were they the bright spots? ed: they were. aws, the cloud platform, topline growth of 27%, that is the cash cow for amazon. it only makes up between 10% to 20% of revenue in any given quarter but a really big contributor to net income, to operating profit in advertising, it has been a growing business for amazon. you don't think of them as a big player alongside google and facebook but it is growing on that platform. haidi: jeff bezos stepped down

as ceo earlier this month. how we heard from him? ed: no. jeff bezos has moved into the executive chair role. he was not on this call and interestingly, the new ceo, andy jassy, was not on the earnings call either. he had a quote in the statement so amazon have kept that tradition. all of the communication was made by the cfo and the only thing he had to say was that they expected andy jassy to bring his usual optimism to the role but i think the expectation is very much that he carries on in the same vein that jeff bezos was. haidi: he still has his head in the clouds i suspect when it comes to jeff bezos. ed ludlow. take a look at where nasdaq futures are trading, off 140 points, about 1%, and that is really amazon down in the after-hours effect that we are seeing there. let's get to vonnie quinn, who has the first word headlines for us. vonnie: a group of gop senators

is calling on the sec to investigate fraudulent chinese companies listed in the united states. the move follows the didi dibacco and china's enforcement actions on the ridehailing company. prior to its offering, didi's top brass downplayed the rest. didi is denying the wall street journal report saying it is considering going private. joe biden is toughening up on federal employees to require all workers to prove they have been vaccinated against covid-19 or wear our mask and take frequent tests. the plan will affect millions of federal workers including the military and on-site contractors. biden is encouraging private sector employers to follow the same approach. it comes in response to vaccine holdouts. the biden administration also calling on states and local governments to provide a $100 incentive to people who get

vaccinated. the treasury department says the president asked states to provide the funds to the 1.9 trillion dollar american rescue plan. some states and cities announced incentives as a way to boost sagging inoculation rates. israel will offer its covid research okta people over 60 who have already been fully vaccinated. that makes israel the first country to offer a third dose of the pfizer biontech vaccine to its citizens on a wide scale. it comes at a time when infections are rising. neither the u.s. nor the e.u. have approved the booster shot. it is not proven if a third dose helps, who needs it, or when. 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. shery. shery: still ahead, we will speak with the food and agriculture organization's chief economist about surging food costs and the challenge of equal access to supply. up next, popular trading

platform robinhood slides in his trading debut. we will hear from the ceo. this is bloomberg. ♪

>> this company has changed the definition of what is a retail investor. it changed the way people trade. >> i think that this roller coaster is something that younger traders have a hard time with. >> worth investing in considering but investors don't have to rush into it right now. >> the retail investor is more sophisticated than ever, taking control over their own finances than they ever have. robinhood has helped push investors in that direction.

>> it changed how institutional investors shortstop. no one shortstop the same way because of what is going on in the meme stocks. >> you will see a growing number of folks in the industry making sure investors are fully informed and getting more access as time goes on. shery: guests on bloomberg tv talking about robinhood's ipo. shares closing down more than 8.5% in the first trading session. he is focusing on the long term. he spoke to emily chang about the nasdaq debut. >> it is really humbling that six short years after we launched our products to the public, we have over 22 million customers and we are on this journey with our customers, allowing them to participate in the offering. emily: you said he would allocate 25% to 30% to

robinhood's own users somewhere in the range of 20% to 25%. one of the biggest allocations ever. how did you get to that number and are you concerned at all about volatility? emily: we certainly -- vlad: we are certainly proud to have one of the largest retail allocations ever. the way that we think about it, it is a long-term focused company and we are making decisions and big debts for what the long-term interest of the business is. volatility comes and goes. we are not going to be commenting too much on daily fluctuations for the stock price. emily: the retail movement is a phenomenon and looking at social media, just this morning, there are strong feelings about what robinhood represents. when he think about gamestop, amc, do you get at all worried

about robinhood becoming a target of its own users? emily: -- vlad: we are not thinking about anything that happens in the market especially in the short term. the goal is to keep making great products to keep improving the service and keep growing with our customers. we have seen finance become more important in the retail investor become much more important within investing. that is something we think will continue. emily: you live-streamed your roadshow to the public. you said more are coming. when should investors expect those kind of things? vlad: one of the things we have been excited about is turning first time investors into long-term investors. you can see that with some of the recent products that we have launched. it started with fractional shares but then we built on top of that foundation with things like recurring investments. if you are a customer, you can

put in an order to buy a particular stock or etf on a regular basis and we will continue investing in that. we are seeing really good adoption and we would like to see a large portion of our activity be kind of long-term investing in the future. >> vlad tenev speaking to emily chang. let's get more on that debut by robinhood. our deals reporter is in san francisco. not a great debut performance. a lot of analysts saying it is pretty embarrassing given the support they have been expecting. >> this is a worse than expected debut for robinhood. first, they priced at the bottom of the proposed range and then they went down 8% though not what they were hoping for and frankly, it looks like the bankers mis-assessed what the demand was because they always try to reward new investors are taking a risk so it did not go

as well as people were expecting but it is still valued around 30 billion and that is up from 8 billion over one year ago so it depends on who you are talking to let some people are still making a lot of money. shery: what did we hear from investors? there were lots of posts on reddit about the ipo. katie: what is interesting is that a lot of robinhood's own customer base turned on them earlier this year after there was drama with gamestop and how they handled the trading of that. and so, some of them are pretty angry about it. and may it did not want to buy robinhood today. robinhood did let its users buy into the ipo. in theory, that means you would get a discount, but since it did not pop, it went down. it was not discounted at all the you know, depending on how robinhood trades in the coming days, weeks, months, maybe these

people will make some money. haidi: what is the outlook for robinhood? is retail investing expected to stay? katie: no one knows for sure. certainly gamestop one up, down, and back up. there have been other meme stocks. there are regulators looking into this. it has been sort of unusual. i think that robinhood is not just tied to meme investing. they have crypto, options, and other things. that is not the only thing robinhood shareholders are looking for but they have various regulatory concerns related to their business. some people do not like the payment for order flow business model that they have. they still had really strong user growth, revenue growth, so it kind of remains to be seen whether that will continue. shery: katie roof there.

-- haidi: katie roof there. you can get around up of the stories you need to know to get your day going in today's friday edition of "daybreak." bloomberg subscribers can go to dayb on their terminals and it's also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪

shery: here's a snapshot of how markets are shaping up so far. didi global denied a report that it is planning to go public. shares jumped as high as 49% after the wall street journal said it would delist to placate chinese regulators and compensate investors for losses. those gains were repaired after didi issued a denial.

the founder and former chairman of mick a lot has been freed on $100 million bail after pleading not guilty to charges of making false statements to investors. prosecutors say trevor milton lied about almost every aspect of the electric car making business in an effort to drive up its stock. the 39-year-old became a billionaire after nicola went public in a spac deal last year before resigning. a new top management at a company as it looks to boost growth after $1.36 billion bailout. the board of the chinese retailer announced a new chairman and a new president as the state backed rescue meant that the billionaire would no longer be in control. coming up next, japan's biggest brokerage will report earnings later on friday as it tries move past the archegos debacle. we will preview those results. this is bloomberg. ♪

haidi: we are getting that jobless rate number coming from japan for the month of june. we were expecting 3% when it comes to the unemployment rate. 2.9%, moving down from the previous month of may, where we saw 3% unemployment. the job applicant ratio, 1.13, that is also slightly higher than expectations of 1.1 and also moving up from the previous month as well. this of ours comes as we see that extended state of emergency

across tokyo and surrounding areas and we are hearing that that could be extended post the end of the olympics until the end of august. as we continue to see coronavirus cases climb around the tokyo area, we are getting close to 4000 cases a day. a third straight day of record high daily infections. nationally, those are infections which are expected to top 10,000 soon as the summer olympics continues. let's get you to vonnie quinn who has our first word headlines. vonnie: the white house wants automakers to pledge that at least 40% of the vehicles they sell in the united dates by the end of the decade will be electric. a spokesperson for the united auto workers union said discussions are ongoing about a target but no agreement has been reached. automakers say they will need support from the government to meet any goals. ceo's from a more than 90 companies including apple, amazon, and facebook are urging congress to pass a law offering a path to citizenship for young,

undocumented immigrants. in a letter to lawmakers, they say the so-called dreamers are valued at their companies. the ceo's worn against a program protecting immigrants jeopardizes their ability to work and live legally in the united states. at the international space station got an unexpected jolt from a newly arrived russian module. it happened when thrusters turned on unexpectedly after docking. iss flight controllers say the space station suffered no damage and none of the seven crew members were injured. nasa postpone friday's launch of the star liner. at the tokyo olympics, an american gymnast won the all-around title. the victory came one day after her teammate, simone biles, withdrew from the competition. lee is 18 years old. it is the fifth straight for the u.s.. 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 have vonnie quinn. this is bloomberg. shery. shery: nomura's first quarter earnings will be out friday. let's cross to our initial finance reporter, nabila ahmed. what should we be expecting? bella: -- nebula -- nabila : the stock is hovering where it was last year but there is some good news on the horizon. we think that nomura could post a profit despite another 600 million dollars hit from the archegos saga. analysts are telling us the retail business has -- is expected to have done pretty well given that u.s. and japanese markets have been pretty healthy. asset management is expected to be stable. the fixed income and currency trading is expected to have been

pretty solid as well. >> going forward, does that mean they can recover from the one-time loss? nabila: all eyes will be on the ceo to explain how the banks will move forward post these archegos losses, the $600 millions brings their total tally to $2.9 billion. they are one of the banks along with credit suisse to have had outside losses in relation to their prime business and regulatory fines could be expected so that is something that the coo will be quizzed on today. shery: katie roof -- nabila ahmed there. we will be watching other japanese banks reporting earnings today. -- has become the latest foreign investor to exit the oil sands with the sale of its society. this follows similar exits amid growing investor concern about

the industry's higher than average emissions and environmental impact. factory automation suppliers boosted its fiscal year forecast for profit and revenue as demand for its industrial robot shows signs of recovering. in korea, the government is said to announce covid-19 vaccination plans for 18 to 49-year-olds. inoculations for those over 50 began this week. we also got industrial output figures earlier today. south korea june industrial output rising 2.2% month on month, beating expectations. the founder of south korean messaging giant to -- a south korean messaging giant has propelled him to the top of the country's wealth ranking. he is now worth 13.4 billion dollars according to the billionaires index which you can check out on the terminal. plenty more to come on "daybreak asia." this is bloomberg.

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shery: take a look at the commodities. the one-week high. we have seen really the heat and dryness across the u.s. threatening those supplies especially when it comes to yields in north dakota. we have seen sugar and coffee futures coming down a little bit.

this of course after we saw them jumping to a seven-year high. there are concerns about the front in brazil especially south. a region that could be affected greatly. 20% of the region, watching those developments closely with extreme weather. we have already seen food prices soaring around the world. the index rising for the last 12 consecutive months through may before easing a little bit in june. we are talking about and over 30% gain from one year earlier. let's discuss how certain food prices have impacted people's access to food around the world. let's bring in the chief economist for the food and agriculture organization of the united nations. thank you very much for staying late for us from rome. give us first of all your outlook for prices given all of these extreme weather events that we have seen as i mentioned earlier. whether it is still, here in the u.s., or even in china with the floods.

>> thank you so much. basically what happens is that we are in a world where the export of commodities is highly concentrated so the u.s., brazil, they are key exporters of commodities so anything that happens in those countries, we will have a reflection on prices. we are observing a reflection in brazil and climate in the u.s., which will affect the supplier. it is important to mention that in the medium-term and the long term, we expect prices to stabilize and to decline. the reason is because population growth is not growing at the velocity that we were expecting. in the future, we will expect prices will stabilize. shery: i wonder how that will impact the rest of the world because it has never really been about not having enough supplies. it is about access to food. we heard earlier this week from

the imf well warning of a dangerous divergence in economic growth. take a listen to this first. >> we warned of a dangerous divergence and we are seeing that get worse in the most recent data that we are looking at. if you look out into 2025, we have almost no scarring for advanced economies projected and significant scarring for emerging markets and developing economies. shery: how has the pandemic affected food accessibility to the most vulnerable around the world and given how un-even the recovery is, what can you expect? maximo: what the pandemic has shown to us, it has affected even more the situation. they will be burying the major costs of the pandemic. we know that there is 161

million people more hungry than before. it is the biggest increase of the last five years. it means countries which are the most vulnerable are the ones paying the highest costs. covid-19 is only showing more inequality than what was explained by the imf. that developed economies, because they have the capacity to build back better will be the ones moving faster in the recovery, putting some pressure on the demand. the poorest economies that have been affected because they don't have capacity to invest and they do not have the amount of resources will be the ones that will be the most effective so that is what we need to think differently about and we need to find a way in which we create a mechanism to reduce those inequalities. if not, we will be accelerating that. haidi: what does that mechanism or those mechanisms look

like? are they multilateral policies that can be put in place? maximo: exactly because right now, there is a discussion. in those resources, they will be used. the discussions we have today is that we believe that those resources need to be used in the poorest countries paid we need to accelerate the process of vaccination, especially in south asia, so that for the next year at least, we are sure that these economies can recover. if we do not invest these resources effectively, especially in rural areas, that is where most of the poor people are, we will be facing a significant challenge. the other problem which is extremely important, affecting economies like latin america, is the level of the formality of the economy. it has been extremely affected because with the lockdowns, the sector did not have any more revenue and they are taking such a long period of time -- the

working capital and as a result, you are seeing that in latin america which is basically a poor situation. you are observing the rates going up and hunger going up which is a bigger problem for a region that was supposed to be facing this challenge. haidi: what is the impact of climate change as yet another complicating factor in this? maximo: climate change is one of the key drivers of food insecurity so the drivers that have been in the last years are conflict, climate change, and slowdowns. in the case of covid-19, it affected slowdowns and downturns more because of the recession we are facing. climate change will continue and that will increase even more hunger in the countries that are the most vulnerable.

it will affect extreme levels of flooding but it will also affect extreme volatility of temperatures. it will make more difficult the decisions of using scarce resources and will create more inefficiencies. we need to increase resilience. haidi: how do countries need to rethink agriculture given the risks that you mentioned? maximo: what countries need to do, we need to seriously invest in specific types of properties to increase resilience. it means to be able to predict what will happen and that means we need to invest in good early warning systems. we need to invest in health because we want to minimize the problem we are facing today.

we need to invest in insurance pickup rates in this economy. we need to find solutions. the second component of resilience is to find ways we can cope and that means improving the various mechanisms and investment in infrastructure and infrastructure which is close to the value chain. we need better repurpose things so that they target access and we also need to have a mechanism that will assure that access will be increased. shery: let me touch on healthy diets because we have been talking about supply and food prices. how important is the nutritional value of food when it comes to food security? maximo: it is central. we have 3 billion people that don't have access to -- these 3 billion people could be facing

future diseases because they are not eating the micronutrients they need to be able to be healthy and this is something that will be affecting you in the future. if you look at the effect, it will bring the cost to the present. if they do not invest two and we do not use these resources to invest today so we can lower the cost of access to healthy diets, we will have political consequences, not only in undernourishment but also in other ways which have a significant impact. >> really appreciate you joining us, particularly at this late hour for you. maximo torero, chief economist for the food and agricultural organization of the united nations. coming up next, it had a difficult start but japan is starting to get excited about the olympics. we get the latest from tokyo, next. ♪

shery: breaking news the moment. we are hearing that japan may be seeking to extend their state of emergency to the end of august.

it was originally expected to be until august 22 and then remember, this is already the fourth state of emergency for tokyo. japan is -- extending the emergency in okinawa, adding osaka to the state of emergency in this as we continue to see record number of coronavirus cases as we continue to also have a tokyo olympics ongoing at the moment. japan seeking to extend the state of emergency in tokyo until the end of august, originally supposed to end around august 20 second, therefore state of emergency, and this coming at a time when the olympics are ongoing. it had a slow start but japan is starting to get excited about the gains as the team racks up gold medals. sophia jackman joins us now with the latest. what is the olympic mood like now in japan and what is behind the change given we have

seen a lot of criticism when you are seeing record infections? sophie: the olympics are not popular locally in the run-up and once they start to happen in the home team starts to -- people get involved, the mood seems to improve and even though we are still very much -- that appears to be happening -- people posting here in japan about the games. the positives outweigh the negatives. we are waiting for more -- it shows us that sentiment -- in the run-up to the games, the majority were against holding the olympics. things start to turn around. you saw people turning to say it's ok to hold them even with the virus raging around many parts of the world. we'll see how that goes for the rest of the games and the virus

situation. haidi: the virus situation continues to stack up in terms of these cases. even cases among athletes. maximo: that it's right. in tokyo, you have a third straight day of a new high. that is among the general population. we don't have any direct evidence that the bubble has been popped. and then of course, the olympics -- on the planet. but among the general population , it will remain under a state of emergency.

we do see people have been sick and tired. it could be that cases will continue to rise. the delta variant is on the rise. shery: sophia jackman with the latest on the japan olympics right now. we have breaking news at the moment as well. industrial production from japan out at the moment. month on month, we are seeing a jump of 60.2%. beating expectations. when it comes to the month on month numbers, it is also a reversal from a contraction the previous month. perhaps the automobile production rebounding after a semiconductor shortage weighed on may's outcome. that could have given a boost to factory output numbers. year on year, it is a huge gain. plus 22.6%, beating expectations. a little bit softer when it

comes to the retail sales numbers. month on month, a gain of 3.1% which also beat estimates but we are talking about a very soft figure especially in the department store and supermarket sales area because that is actually seeing a contraction of more than 2% instead of a gain of around .5% which was expected . really not surprising these numbers given that the services side of things, consumption remains weak with a record number of virus cases but of course, with external demand remaining strong, industrial production, very strong numbers there. haidi: let's get back to the olympics, talking about how they are starting to get more fans within japan after being deeply unpopular leading to the start of the tokyo olympics but it has been so hard for athletes. we know that their training regime's have been disrupted. it has been such a strange olympics year for them and now a lot of them, and i know this is

just watching in particular the big team sports and stadiums like soccer. they are having to compete with these arenas entirely devoid of what you usually expect of cheering fans and the background noise. it is quite eerie. maybe not so much when it is things like gymnastics where there's a lot of people around but certainly when they are in this stadium, designed to hold so many people. shery: it is quite a unique and strange olympics this time around. you mentioned all of that given the coronavirus pandemic but also, it is really hot in japan right now. it is making it difficult for athletes to compete. we have heard of a russian archer fainting. those matches being held outdoors. tennis star also suffering from the heat, trying to avoid those peak hours. in the meantime, we have continued to track the metals count and you can actually find

it on the olympics coverage by bloomberg, the tractor, and you can see that japan and china are leading in terms of gold medals with 15 each on the bloomberg terminal. a quick check nile of the latest business -- now of the latest business flash headlines. rapid growth through the pandemic is waning, projecting revenue of 106 to $112 billion, lower than estimates. shares fell in extended trade as investors focused on its slowing e-commerce business despite strong performances in its advertising and cloud units. apple has sold $6.5 billion of bonds as it increasingly looks to return cash to its shareholders. the longest portion of 40 year security will yield above treasuries. initial price discussions were in the 1.15 percentage point range. the proceeds could be put

towards stock buybacks, dividends, or acquisitions. scarlett johansson is suing disney for streaming the film online at the same time it opened in theaters in court filings. she claims disney tried to draw people away from theaters. they promised it would have an exclusive theater release. robinhood has had the worst debut ever for an ipo here in the u.s. shares slipped below their opening price, ending the day down almost a .5%. the trading platform has set aside a large portion of its shares for retail investors. sources say only around one quarter of them went to that. robinhood ceo says he does not have a short-term market outlook. for the market opens in sydney, seoul, and tokyo, they are next. a mixed picture when it comes to

futures. u.s. futures under pressure. this is bloomberg. ♪

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haidi: welcome to daybreak asia, i am haidi stroud-watts in sydney. shery: i'm shery ahn, asian markets have opened for trade, our top stories. a cautious start as earnings, ego data and risk from china's corporate crackdown. management seeking to clean up.

following a bailout. haidi: japan's biggest -- shery: looking to move forward from a debacle. down.4% with communication and health care stocks leading the declines. this reversing those gains we saw on the previous session, not surprising given we have a stronger japanese yen against u.s. dollar. we could see more strength triggered by the slide in u.s. 10 year yields below those of japan. topics also down, and while the japanese yen is holding up at 100, we have been watching the super long bond space outperforming all week. we got news japan is seeking to extend the state of emergency to the end of august. that could add more pressure and sentiments souring across japan. in south korea, losses of .4%. we did have industrial output

numbers beating expectations in south korea, strong external manned for those exports in northeast asia, a gain of 2.2% for south korea. and the choppy -- kospi gaining, korean won getting. positive reaction from some strong earnings coming out of korea. it seems to be, haidi, the pressure from here is given that futures are also down. haidi: we are seeing downside pressure when it comes to training in this part of the world. take a look at the early part of the session, in particular we are watching banking stocks, amp down by 1% in the early part of the session. they are being sued by the australian regulators. also in the aussie session,

watching for others to come online in the staggered open, a buyback of $1.9 billion of shares to return values to shareholders. leaders on the back, 73.94, when it comes to -- .7394, more room for tactical outside of the third quarter. they have not priced into much compared to the rba, given that we are seeing the lockdown make the waters more murky. kiwi stocks overall down by about a 10th of 1% and the greenback holding steady at about over 70. shery: a warning that global stock markets are headed for a bumpy ride for the second half. implications of china's crackdown, the resurgence of covid-19 cases and more. the executive director of investment strategy at overseas chinese ringing management,

always good to have you. we have seen in the last couple of sessions a rebound in chinese stocks. we oversaw desk also saw the fed coming out, giving a boost to risk assets. how much worse could it get when we are seeing a little bit of support in these two fronts. vasu: with the fed, i think it is good news. with china, i am not sure it is sustainable. it may be temporary because if you look at nasdaq, golden dragon index, last night, chinese stocks and the u.s., that was down by 5% and education stocks return. they were down between six and 10% last night after surging in the earlier two sessions. i think the markets are still nervous about what the chinese government is trying to do. this regulatory crackdown has been going on for the last nine months. the crackdown on the education sector, it caught a lot of investors off guard, surprised

investors, give them the impression the chinese government intends to ensure that regulation is properly presented. the health care sector as well. the widening net we could see the coming months, until we get clarity from the chinese authorities, they will be nervous and you will see volatility. shery: so this chart on bloomberg, especially with stocks in hong kong showing that volatility remains by the fact that we saw the rebound, if you are seeing these, do you stay out of the market or do you buy into the dip and look for long-term gains? vasu: we tell our clients to be careful. we do not think this is the right time to participate in any aggressive session. it is a fairly uncertain outlook.

if you look at the msci china index, you see it is now trading at about -- above its ten-year average. you don't see deep value in the market just yet. the msci index is down almost 10% in the last five months or so. notwithstanding the recent selloff. we are not seeing that emerge and we are not clear about the earnings index or the regulatory crackdown on chinese companies. it is a bit early. volatility will be a lot in the next two months and investors -- an earnings release, hopefully their parties will be better about what they are doing and they are easing on the regular tour crackdown. we don't have an assurance from the authorities right now.

haidi: and with that poor visibility, does that mean it is not possible to see what this means? is it possible to say that is an appropriate level of a discount? vasu: i think the problem is if you look at ratios, and some places they look cheap. but the earnings, when you talk about private earnings, we need to see what happens with the earnings in the coming quarter or two to get a gauge of how this crackdown is hurting. that remains a bit uncertain. i will not see investors jumping in a big way just yet. one has to be careful because you are not sure how this crackdown is going to be. haidi: are there benefits,

particularly in the asian space? vasu: benefits? haidi: right, so are we talking about potential contagion of that volatility across agent emerging markets, or do you think beneficiaries know, we are assuming most investors who don't have the risk appetite will be looking elsewhere? vasu: i don't think you will see a big contagion. you are seeing certain sectors in china taking a hit because of regulatory scrutiny and tightening. i don't think it will result in the chinese economy falling off a cliff. i think the chinese government try to manage the economy and fiscal policy. we have already seen them reduce the rrr ratio. it's complex to investors in asia. i think one of the beneficiaries, if you look at

singapore, and is one of the markets -- the stock market has done well relative to asian peers. until now, the rock -- lockdown, vaccination rates are going up, and the economy -- if the economy reopens there is potential for them to do quite well. so some of it concerning china will actually benefit, you can see the money make its way into the singapore stock market which we want. haidi: vasu menon. still ahead, former philadelphia fed president says policy could lead to resistant inflation, and interview next. plus tomorrow's earnings could recover, we will be looking at the numbers later. this is bloomberg. ♪

vonnie: this is daybreak asia and i'm wanting the headlines. china has an alternative proposal or its second investigation into the origins of the coronavirus. it should span multiple countries. beijing counters the u.s. push for a closer look into the theory that the virus leaked from a wuhan lab. many officials are opposed to the plan. president biden is toughening up on federal employees, requiring them to prove they have been vaccinated against covid-19 or wear masks and take frequent coronavirus tests. this will affect millions of people including the military. biden is encouraging private sector employers to follow the sim approach. the move comes in bonds to vaccine holdouts. the biden administration also calling on states and local governments to provide a $100

incentive to people to get vaccinated. the treasury department says the president is taking the funds from the american rescue plan. some states have already announced incentives in the wake of sagging inoculation rates. biden also expects full fda exceed approval in the near term. israel will offer a covid booster shot for people over 60 who have been bullied vaccinated. that makes israel the first country to offer a third dose of the pfizer biontech vaccine to its citizens on a wide scale, the decision comes at a time when infections are rising. neither the es or the eu have approved booster shots. it is not proven if it helps, who needs it or when. the international space station has duels from a newly arrived russian module. the russian craft crashed unexpectedly after docking. iss flight controllers say the

space station suffered no damage and none of the crew members are injured. nasa has postponed friday's launch of boeing star liner. 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. shery: the u.s. economy expanded less than expected in the second quarter how back by supply constraints. still, the gdp price index is the most since the 1980's, showing strong inflationary pressures. he says the fed may be heading -- an interview with the former philadelphia fed president. >> we are having huge spending programs. great demand from government for the fed to support spending efforts. and what looks like a supply shot, constraining it,

dislocations and other things just like an oil embargo. what the fed did was accommodate those and turn a temporary strauch -- stock from oil prices to one -- shock from oil prices to another one. the question we have to face today is permanent versus temporary. what will decide whether or not the price increases we are seeing now will persist or not? 80 they will go down a little, but will it persist above 2%? that will be what policy does. shery: with the fed starting to taper sooner rather than later be a sufficient step? charles: that remains to be seen. it would be a good step for them to take. it will be the first step they take. whether that will be sufficient i do not know at this point. it will depend.

again, they need -- their seriousness about not converting these temporary shocks into more permanent, persistent shocks on inflation. they are going to have to respond with policy actions. the first step would be to bring and beginning to stop this extraordinary volume of assets they are purchasing. they purchased roughly 60% of all the debt the u.s. government issued since the beginning. shery: what is the risk of waiting? are you talking about going back to the 70's and what happened, or could it be more? charles: well, it could be two or three ways they could play out. the fed could get very lucky and it will go away. i think that is a possibility but not a very large possibility. the second possibility is that the fed wakes up and decides it

has to do something about this, and it will begin to taper. the third option is they wait and they wait and they wait until there is no denying this inflation is not going away anytime soon. then they have to react. and then, by then, expectations will have shifted up and actions that the fed has to take in terms of raising interest rates or stopping bond buying or however you want to about it, it will disrupt the markets and actually lead to a very bumpy if not session every period as the fed tries to get control of inflation again. that is the risk they are taking. will that come to pass? who knows. but that is the risk. kathleen: in terms of the pressures they are going to see,

they are certainly starting to get patients that pressures from people, regular people talking about the higher prices of new cars and food and all kind of things. it is not in the u.s. next -- yet, but in germany today, after the consumer price index hit a 13 year high, service sector union called for strong wage increases. is the fed going to see more of that? charles: they very male -- well might but they're going to get pushback on the other side with inflation from others, because the fed has made a promise they would not raise rates until they met their inclusive full employment objective, whatever that means. kathleen: is it all about -- the fed can start talking up strength in the labor market, that is the way they can start and move policy quicker? charles: i think that is what

they will try to do, they will try to talk up the strength of the employment report and how close they are two national employment. so that they have leeway. but it may put themselves into a corner and they are going to try and talk them selves out. haidi: the former bank of philadelphia president ceo. chinese retailers have new management that follow a hefty bailout. the details next. this is bloomberg. ♪

>> in the next 10 or 20 years, they have tripled in value, i think you have a similar one in 10 or 15 years. haidi: chinese retailers named new top management, the change following more than $1 billion fed bailout. executive editor joins us from beijing. this is the end of an era in terms of management but also hopefully --

the new start -- >> the new chairman, he was the founder and chairman of a retailer in china that was sold to alibaba in 2018. he joined the suning board as a representative from alibaba. not only is alibaba their second largest shareholder now, but it was part of the conglomerate the did the bailout this month. haidi: -- shery: tell us about the process of the bailout become -- because the concerns about cash flow have been there since september. >> that is right. suning had an interesting beginning to this crisis. it is one of china's largest real -- retailers and because the pandemic, a lot of people stayed home and did not go shopping, so they suffer that way. but also the former chairman decided to forgo a payment from

evergrande, several billing -- billion u.n. -- yuen. haidi: we saw the trade limit up in yesterday's session, on the rumors of a potential takeover by alibaba. you talk about the interconnectedness, all of these connections, especially with new management going back. >> so, it could. it looks like the connection between the two companies has grown and alibaba's influence on suning is going to be larger than ever. will there be a deal? i think part of that car collision is the intensity -- calculation is the intensity of scrutiny on alibaba and big tech at the moment. that might wrinkle that -- be a wrinkle people need a big about. shery: our greater china

executive editor. a check of the business flash headlines, dd global -- didi global denying reports it will go private. jumping after the wall street journal says it would compensate investors for losses. robinhood has had the worst if you ever for an ipo of its size in the u.s.. shares slipped below, ending the day almost 8.5%. down. only around a quarter of their retail investors went along. the ceo says he does not have a short-term market outlook. the national australia bank is planning to buy back up to 1.9 billion dollars of its own shares, around 2.5 billion

aussie dollars. now would be the second after they invested this month, they have plans to repurchase stock. it aims to start the process in mid-to-late august, subject to market conditions. the founder and former chairman of nikola has been freed on a $100 million bailout after pleading not guilty to charges of making all statements to investors. trevor milton, prosecutor say, lied about almost every aspect of the business. the 39-year-old became a billionaire after nikola went public in a back field last year -- in a stack -- spac deal. kathleen: one of the early prototypes in the business could be driven when in fact the

closest it never came is when a group of engineers pitch -- posted to the top of the hill and rolled it commercial. haidi: limiting the fallout from the global chip shortage, allowing europe's biggest carmaker to raise its outlook. they are confident the automaker will recover in the fourth quarter. >> i think we have overcome chip shortage is so far quite well, so we could manage and we could have -- we have been prioritizing in china. also, we got through this quite positively in the first half. we're going to see some hits now in the third quarter because production constraints. we are managing through, but we are confident we can recover in quarter four. this is why we are raising our outlook for this year.

>> chips aren't the only problem, we have heard from a lot of businesses that due to the resurgence in covid, the delta variant, the return to office plans are being reversed. how is volkswagen and its massive business across all of your units experiencing this new wave? >> as you say, we have more constraints. we have a very good team in place, they are managing supplies worldwide. we could manage supplies through covid, through the first bit so we did not lose too many cars. we always can speed up supply. we have long lead times in our supply chain and now we will see some hits from semiconductors, but it is our belief that in q4

if we don't have a reset on the covid side we should be able to recover in 2021 and have a positive outlook. lots of our constraints, people are working on and there is capacity added, so i don't and there you have it - wireless on the fastest, most reliable network. wow! big deal! we get unlimited for just $30 bucks. i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax people, my wireless is crushing it. okay, that's because you all have xfinity mobile. it's wireless so good, it keeps one upping itself.

vonnie: i am vonnie quinn with the first word headlines. beijing keeping an open mind -- mind as they ringing -- it in chinese trade. china has a scope for an agreement that they hope will be adopted by w po verse. best to bdo numbers. if china cooperates, it could be a significant move since the negotiations in 2001. the white house -- 40% of the

vehicles they sell in the u.s. will be electric by the end of the decade. discussions are ongoing about a target but none have been reached. ceos for more than 90 companies including apple, amazon, facebook are urging congress to pass a law offering a path to citizenship for young, undocumented immigrants. in a letter to president biden and lawmakers, they say dreamers are valued at their companies. a recent ruling against a program protecting immigrants jeopardizes their ability to work and live legally in the united states. at the tokyo olympics, so neely won the women's all-around gymnastics title. this came after simone biles withdrew. lee is 18 years old, it is the

fifth straight gold medal for the u.s. all-around. 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: credit suisse is under pressure. the lender is working to recover from one of its most turbulent periods since the financial crisis, the aftershock across the investment bank and wealth management units. the ceo had an interview with bloomberg earlier. >> we are absolutely doing this strategic review together and the board of directors and executive board. we are having constructive discussions, we want to take our time to do that because it is not something we want -- we have a clear intention to formalize a vision for the bank and a

concrete midterm plan. this is what we are doing together with the board of directors. we are looking at all of options, but we have some very clear direction but we are not now, as you can imagine, disclosing part of that strategy. we will communicate when we are ready to do so. haidi: so we should see the investment banking as core to credit suisse? >> look, we have been investing, as you can see, in the numbers. in terms of technology, in terms of people. i'm going to pitch it myself, so investment banking has been and is absolutely core to our business and we are investing in it. we are spending a lot of time with clients and as you know, we have a strategy where we bring

our wealth management capabilities together with our investment banking capabilities, available to clients, private clients, or bread or institutional. >> and what can you tell us about the response at credit suisse to the risk review e published this morning? it says risk control architecture was not lacking, but there was a failure to discharge and prioritize mitigation. what is left to do to make sure risk management is robust? >> we are taking this event very seriously. we lost them up with one client, 5 billion swiss francs. this is why we decided to publish the full report, it is over 100 62 pages and goes into a lot of details about some of the failures but also conditions. the failures are centering around a lack of effective risk management in the second --

first and second lines of defense, alaka oversight in investment bank and risk management, a lack of escalation , prioritization of certain risk mitigating specs which have been discussed by some of the teams, like moving clients like archeg os to managed marketing. we have decided to publish the full report and we are focused on taking the sins away from this. and we are doing a global -- across the bank and we will make sure anything like that will never happen again. haidi: they are discussing the bank's district -- strategic review with anna edwards. we will get the indications of the market direction in china, asia futures to come online in

singapore. amid china's ongoing crackdown, our next guest says it despite volatility, this is a constructed crackdown, let us bring in betty wang. we saw the markets come after that hastily assembled meeting with investment banking executives in china to try and clarify the intent behind the government crackdown. his communication the problem here, or is there still too much uncertainty over who could be targeted next? betty: yes, thanks. i think from the market perspective there is still a lot of uncertainty is down the road. but one -- when we try to understand, there are at least two things we need to bear in mind. the first is the so-called crackdown on china's tech companies. if you look at those tech giants impacted by the government policy changes, they are unlike

companies such as way -- such as huawei. they are more like internet platforms, or platform economies in china's documentation. they have been involved more in business services or hotel and retail sectors than high-tech sectors. in the second point we need to bear in mind is that the revelation on internet companies could support china's manufacture and sectors. it is believed to increase cost because of the economy of scale and give rise to monopolistic practice. but at the same time, it squeezes the profit on industrial manufacturers. from that point, it could support them in capturing sector. haidi: you could also argue so many sectors could be seen as

consumer safety, property for example a huge one. it affects 40 something other subsectors and industries around china. you could make that argument when it comes to biotech and pharmaceuticals. it's a concern that the could easily broaden this regulatory crackdown based on your reasoning that these are industries and products that affect consumers? betty: i would think it is possible. one thing we need to bear in mind, and when we try to understand china's revelatory challenges or the economic -- the economic and political cycle in china is longer than other countries. the underlying consideration behind policy changes could be more long-term, for example, to support the manufacturing sector. so that is a consensus not with china's latest, back in 2020, when the official clearly

mentioned to maintain a stable share of the manufacturing sector from the gdp component. this is complete lee different from the past decade when china was eager to bring up the other sector. i would think one intention behind it is the long-term growth profile and also the country's -- shery: we are also joined by china market reporter, look at head -- i had at what we expect today. we saw chinese adr under pressure in the new york section, given what we are seeing with the rebound in china, what should we expect today? >> yeah, we saw very broad rally yesterday and according to investors we talked to, it could last a few more days, and given the actions of many stocks --

but many investors i have talked to, they are not quite confident enough that this would be a start of a long-term rally after the correction. interesting to bear in mind is that mainland investors who have continued to sell hong kong stocks yesterday, even when the market was rallying, reflecting that those domestic buyers who are nationally closer to the regulators have a lot of concerns about the outlook. haidi: there are lots of these concerns, even with that meeting, it does not feel like the jitters have been removed. how do they think the crackdown is going to go from here? jeanny: there were so many analysis on the what-ifs in the markets. like, we keep hearing people,

what if health care be the next target because the nation what health care to be free for every citizen, it cannot go for profit anymore, or for example, property. they are saying what if they want everybody to live in housing which is free. still, lots of concerns by investors, lots of worst-case scenarios, the education sector has experienced. i would just say, if you see the index on the hang seng is at a high level and they will keep coming. shery: given that we do have the

meeting going on right now, what are you expecting to see question mark the last couple of times we had this very high meeting, we heard about soaring house prices and the crackdown. we heard about others, there was a crackdown. what are you watching? betty: exactly. this meeting is not important because the fed -- china's economic policy in the second half, but when i say that i mean the difference from western countries -- countries because china does not only have monetary and fiscal policy, but also industrial policies which will be in place, and as you mentioned about revelatory dutch regulatory challenges. we think there was a surprise in terms of the policy.

the second half compares with a couple of months ago. basically, the policy will be quite a commodity and from the policy side it would be focusing on liquidity money tending to spend, more than 22 the second half. all of will hopefully provide for the economy when the downsides come in, but more importantly, the market would be looking for any regulatory changes and any condition -- can -- indication of future policy changes. this is different from the market we pay attention to. shery: you talk about the fiscal policy, the monetary report, when will we see that focus on deleveraging -- when -- where will that focus go? betty: in terms of the second

half, i would think the policy focus would be the liquidity injection to ensure that the rates, the process and the financial sector is going to be moved. that is why we are so looking, but necessarily in the form of a -- it could come as a report cost, they describe when it announced the cost in -- the forecast in july. this kind of operation could be returning to normal in 2018 and 2019. haidi: always good to have you with us, betty wang them a senior economist. and jeanny yu. coming up, we will preview those results, this is bloomberg.

shery: take a look at the japanese markets, piercing roadside pressure for the nikkei, losing about 1%. worse than those gains in the previous section -- session, a japanese yen at the 109 level after strengthening all week. we are checking banks because they are reporting earnings today. no more, for example, around --

nomura, for example. let's discuss those earnings, former score earnings coming up friday from nomura. this as the bank tries to move past the tobacco. let's talk with nabila ahmed/ . >> we know nomura had a $600 million loss in this quarter but analysts are excepting the bank will return to profit, and that is because of a number of factors, including stronger results from a fixed income and policy trading in volatile markets, a strong result from its retail product based on the strength of the u.s. and japanese stock market, and also stable and low operating costs. some good news for the long-suffering shareholders. haidi: they are hoping this is a

one-off debacle that can be put behind them. >> nomura has already racked up a lot of losses. they had to overhaul their procedures and the ceo will have to explain how the bank gets past this debacle we saw overnight, that credit suisse reported the results of its own internal investigation into what went wrong, we are still waiting for nomura to release its results of a third-party investigation that it promised a couple of months ago. investors will be keen to find out more about that. and also the threat of regulatory sides on this as well. haidi: you can get more on bloomberg, go to the website to get commentary and analysis from bloomberg's expert editors as we look forward to earnings. sales are higher and let's get

more from bloomberg intelligence apex consumer industry analyst kevin. what are we expecting for the second quarter? >> i think the company posted a note of growth for its revenue and also the net profit, primarily driven by the sales and a channel sift, selling more liquor directly to the consumers rather than to wholesalers but go through the traditional, multilayer distribution. alix: -- shery: what is the outlook and how does that compare to consensus and comfort -- company guidance? >> the 2021 figures will figure pretty much in line with the estimate. 13% growth for its revenue and also 60% for its net profit. that is slightly above the

company's revenue target that was given up earlier this year, it's about 11%, and it will be good to listen to what the company says because the demand surpasses the supply volume. the revenue growth is pretty much at the company's discretion. haidi: how is the premiumniz ation -- i odn't hti -- don't think i can say it, but how is it going? >> that is one strategy the company is taking but it is finding it difficult to lift the prices. the company is doing a channel shift, a direct to consumer channel shift. by 2022 we believe those could account for up to 25% of the revenue versus 80% in the first quarter. that is one of the things the

company is doing, and at the same time, what the company is doing is you can take the sales that are price even higher, keeping products in the same time. shery: good to have you, bloomberg intelligence industrial analyst. coming up next, we will hear from astrazeneca ceo on his company's pledge to provide the covid vaccine at cost during the pandemic. this is bloomberg. ♪

shery: last year astrazeneca made a commitment to provide the covid vaccine at cost through the pandemic. the company has kept its word. now ceo pascal soriot tells bloomberg the company is not yet ready to turn a profit on the treatment. pascal: we said we would do, we would follow the direction of no-cost ring the pandemic and we have large quantities to deliver by the end of the year. this would be at the same price. the same conditions as the beginning of the pandemic. so at some point, all of those would be supply at the price but -- we're not there yet.

soon enough week -- we would do that with new orders but we are still supplying because -- i know profit. >> any sense of how that will be measured? how will you define that? pascal: affordable price means we will have share pricing, soviet -- so for many countries it will be a very low price, zero profit, and more extensive are richer countries but even for them, we will moderate. we don't expect -- intent to make large matzoh profit from these vaccines. we can't do it and know profit forever but would not make a lot from the vaccine. >> can i ask about the vaccine and the fda processes, are you planning to file for an emergency use authorization for the covid vaccine, or are you going to go straight to the full

license? and you give us the timescale? pascal: we are going to go for the full license and the teams are working very hard to file the license application. we will do this over the next two to three months. before the end of the year, for sure. haidi: that was the astrazeneca ceo, pascal soriot. the latest headlines, amazon sales fall short of expectations, suggesting its rapid growth during the pandemic is waiting period it was lower than estimates. they are extending trade as investors focus on the slowing e-commerce business despite strong performances in advertising and the cloud. increasingly looking to return cash to shareholders, initial

price discussions were in the 1.15 percentage point rate. it could be toward ibex, dividends and applications. black widow star scarlett johansson is suing disney for streaming the film online at the same time it open in theaters. she claims disney tried to draw audiences away from theaters to its own streaming platform. does he says it is fully compliant with her contract. shery: take a look at futures, we are seeing u.s. futures down .8%. this after stocks rose court and highs in the regular session and the nasdaq 100 futures also moving around more than a percent at the moment. some jitters about those earnings coming from u.s. tech companies, suggesting a gush that profit growth could have peaked. we will be watching those. chinese adr also under pressure in the regular session.

we are discussing more on that coming up, more insights on didi and chinese crackdowns, talking to ben harburg. "bloomberg markets: china open" is next. this is bloomberg. ♪

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anchor: welcome to bloomberg markets target -- china open. anchor: your last look here at malin hong kong. beijing is still the big market risk with adventures, when the chances of new redwood toy crackdowns. yvonne:

david: