haidi: good morning and welcome to "daybreak: australia."

shery: good evening from new york, i'm shery ahn. top stories this hour. u.s. stocks fall on week job reports and hawk us comments from the fed vice chair. rates lift off in 2023. haidi: uber's losses come in arson expected but it does see a quarterly adjusted profit by year-end. shery: in the biden administration approves arm sell to taiwan, a move sure to inflame tensions with china. u.s. futures rooted at the open -- muted at the open after we had a mixed finish in new york. the s&p 500 slumped and the nasdaq 100 outperformed, given that defensive rotation we have seen recently with those comments. the dollar gaining ground and u.s. treasury yields also rising. we did see crude extend losses,

continuing to be under pressure after we saw that unexpected rise in u.s. you'll inventories. we have been watching those data sets closely across the u.s. economy ahead of the payroll numbers on friday. that was the biggest miss in about two years, although different story coming from the services industry with strong numbers on that front. it's all to do with reflation concerns when it comes to monetary policy. 10 minutes ago we had the brazil central-bank rate decision and as expected by most economists surveyed by bloomberg, it was the biggest hike since 2003. we're talking about the selling rate rising to 5.25%. it is to do with inflation concerns, we've seen inflation at a five-year high. now the central-bank signaling

that we could see another hike of 100 basis points. of course we are looking at the macro environment here for the u.s. markets but also to those very strong earnings. it is interesting that we are not seeing that market reaction that perhaps corporate america wanted. the pups are not that high in stock prices when the results beat estimates. wish seen about 92% of companies reporting earnings beating or fulfilling expectations, but not much of a pop for those companies. haidi: and it's incredible because as the most we've seen in data going back to early 2008. how much has the recovery story already been priced into these valuations because of course benchmarks remain near records. what you are seeing instead of being rewarded for these earnings results, if there's any

kind of miss then you see companies getting pretty badly punished. let's look at how we are setting up in the hours ahead of the major markets in asia opening. sophie: this thursday we are seeing some downside pressure for kiwi stocks. some domestic idiosyncrasies at play we saw that buying for chinese tech stocks. india and australian stocks with fresh record highs over in malaysia, stocks under pressure given the political risk. the ringgit following the most in two weeks. over in jakarta, jci closing higher. the new covid case count in indonesia has moderated by the grim milestone of a death count that has risen above 100,000.

the second quarter gdp report is due later thursday. muttering priced pressures, and a rrr cut might be on the table whereas in brazil we have the central-bank there hiking rates to tame inflation. and he thailand the door may be open for rate cut. over at ing they see 35 for the thai baht this year. recent comments a shocker for some charts. shery: clarinet confirming moving up the date for the rate hike and the start of the bond tapering process as the u.s. economy continues to recover. kathleen hays joins us with more perspective on this. how significant is it that we are hearing these comments from

the number two person of the fed? kathleen: when you see that contingent starting to move up the rate hike from 2024, it is important. it all has to do with the economy performing well and inflation rising. let's listen to what rich said earlier today. >> if it turns out to be the actual outcomes for unemployment and inflation realized over the forecast arising, and i do believe these three necessary conditions for raising the target range will have been met by year-end 2022. kathleen: and as you can see come those are prepared remarks. this is exactly the message he intended to send. he said he is in favor of the fed announcing the tapering plan this year and starting it next year. that also is less dovish, and

the money markets took it seriously. you can see there are still few looking forward for any rate hike this year or next but when you get up to that yellow line, that's where people are saying this is when it will be happening, in early 2023. if this is what he is thinking now, it is this what jay powell is thinking too? haidi: how much is it over the removal of stimulus potentially sooner? kathleen: the forecast for rate hikes are changes of any kind, there were a lot of changes from 2024 to 2022. the president of the st. louis fed who had been in the go slower cam, saying he wants to start the taper sooner. he wants to go faster. he is echoing the fed governor chris water. we talked to him in the middle of june. chris water is saying he wants

the taper to start in september and finish in the first quarter. jim bullard is worried about inflation and maybe that's what those word about stimulus are worried about too. let's listen. >> i would expect between 2.5% and 3% in 2022. it's going to come down, but not as fast as many people had in mind. kathleen: let's remember that we just had an interview with charlie evans from the chicago fed last week. he still sees the first rate hike in 2024. he thinks it could go up and go back down below target. so there are still a number of opinions. the hawkish camp is growing and spreading its feathers. shery: let's delve into what's going to happen at the fed. our next guest is waiting for jackson hole to get more details

on the fed timetable. max, great to have you with us. kathleen just mentioned we are seeing some divergence and debate within the fed. what are you expecting to hear later this month? max: i think we will hear the plan for what the taper is going to look like. where in the duration in the car they play, that will be important. one thing that is crucial to note, given the vice chair's comments is that there is not so much need for additional fed purchase right now. we are seeing a lot of excess liquidity. because of that, fundamentally, the taper should not actually make a big difference to the markets. does that mean we are not going to see a tantrum?

not at all. that's where all the signaling, even those who are a bit more dovish, it makes a lot of sense. they really don't want to surprise the markets. shery: and yet you are expecting a taper tantrum as it happens most often when the fed wants to move. do you play it a little more defensive or are you still betting on those more risky assets? max: we think when it comes to reducing fed purchases, it's important to think that the yield curve is going to steepen. for us, that means you want to be careful with defensive growth stocks, you and you want to be lightening up on duration. that is something we are doing as well. haidi: when you look at the collective shrug from the markets of what has been a very strong earnings season, what is it tell you about how baked in

valuations are right now? max: we are seeing multiples come down a little bit because market growth has been stronger than the pace of the bullish buying we have seen. we are also seeing really strong margins and the fact that we are seeing strong sales beats means that consumers are willing to take a bit more of higher prices. so that is really good, but here's the big risk. when you have such lofty expectations, when analyst revision ratios are at an all-time high, even a slight sourness of mood can really send stocks down, so that is what we are really concerned about. haidi: when it comes to china, how much has the regulatory crackdown and development changed your view of chinese equities or china as a broader

asset class rather than the volatility we have come to expect from it? is it helpful to investors with the government intervening to try to correct the results of previous intervention? max: i think china is trying to do the right thing, which is to protect its emerging middle class, but it is doing it in the worst way possible, which is through ham-fisted regulations that are often enacted at the last minute and then have to be walked back by other parts of the party apparatus. that makes us very uneasy over the near term. longer-term, we remain bullish on china. we think it's middle class is very tech savvy. they will be the most important single demographic entity across the global markets. we don't change our long-term

views but we are cautious over the near term. haidi: great to have you with us, backs. let's get over to vonnie quinn with the first word headlines. >> new york governor andrew cuomo is facing mounting pressure to resign over allegations of sexual misconduct. county prosecutors indicate they may pursue criminal charges. a poll conducted among registered new york motor show 63% won't cuomo to -- want cuomo to step down. 29% want him to be impeached if he does not. the governor says he has done nothing wrong. the biden administration has approved its first arms sales to taiwan. the proposed 750 million dollars deal must go through a congressional review process and then through negotiations between taiwan and a contractor before a contract is signed. the proposal is sure to be denounced by china which sees

taiwan as part of its territory and is sure to inflame tensions between washington and beijing. sources tell us a boeing jet has headed to china for test for regulators. it ends of more than to your grounding. about 175 nations have cleared jet to resume after boeing redesigned the flight control system, following two deadly crashes. the fate of the max is seen as a gauge of broader u.s.-china relations. bloomberg has learned the white house will announce limits on electric vehicle sales targets. it's a first major attempt to regulate emissions. we are told the standards were drafted by the epa and pattern after a compromise reached two years ago. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

i'm vonnie quinn. this is bloomberg. haidi: still ahead, the world's largest money transfer provider, the western union ceo joins us later this hour. huber is posting wider losses and expected. shares are plunging in extended trade. this is bloomberg. ♪

shery: we are watching robinhood under a little bit of pressure after hours, but after seeing a surgeon trading volume as it catches the meme stock spotlight, he jumped as much as 82% before trimming those gains to still a whopping 50% in wednesday session. the stock now up more than 85% since its debut on the nasdaq

last week. were also looking at stocks that released results after the bell. mgm resorts saw miss in china while wynn resorts reported a topline beat. electronic arts now seeing a bump after it boosted revenue forecasts. were also watching uber, which is slipping after booking wider than expected losses. haidi: uber racked up losses after spending heavily to lure drivers back in the second quarter. >> drivers increasingly want to get back on the road. june, 60% of drivers said they intended to start driving again. that's up over 40 sent -- 40% from april. 90% told us they expect to come back by september. haidi: this is the? ? old uber playbook, right does it

raise concerns about the sustainability of this labor market model? jackie: absolutely. it's not a black-and-white model. uber continues to see great growth in delivery. but it didn't really deliver when it comes to the profitability that investors have been waiting for. a much wider loss than expected. long-term this labor model comes into question, especially as the delta very is spreading across the markets -- across new markets. shery: we had seen whopping gains. does this mean that those hypergrowth times are over? jackie: for the most part, it remains resilient. they've been delivering food

since 2014 but the pandemic really dramatically accelerated its growth. the number of active users ordering, the frequency at which they are ordering all increased during the quarter by triple digit figures. it's going to be a promising area of growth, especially if they get into grocery delivery as well, which the uber ceo said that's an area they expect to invest quite heavily in going forward. haidi: jackie there with the latest on uber. gm shares tumble by the most in more than a year after the automaker missed profit estimates. it also struck a cautious time about future awnings. the ceo spoke with bloomberg's david westin. >> we increased our guidance for the full year so i think that shows confidence that we will continue to perform on top of an

exceptionally strong h1. weekly from a leadership team, we are looking at make sure with -- making sure we understand the semiconductor situation and we are allocating chips to our highest demand to take care of our customers. it's especially are full-size trucks and suvs. you will see us continue to do that. there's a lot of growing uncertainty because of the delta variant. we have seen an impact in malaysia we have mapped it out in detail. we are working to share our safety protocols because we had the experience to say when people follow those protocols they can do it safely. we will continue to share that work with our tier one and all the way down to tier 4's to make sure they have that benefit and we will keep maximizing production. >> give us a sense of what you

think it might mean for general motors. you mentioned semiconductors more broadly in your manufacturing. >> we did announce to our teams yesterday and starting today we are in -- we're introducing a mandatory mask policy at all of our sites. we know that when people wear a mask and follow social distancing and sanitizing recommendations, people can be safe at work. we are in a very different position than over a year ago when we were not sure. we know the protocols work, so we will be applying those. as we leverage all the learnings we've had over the last 50 months, that will put us in a better position for h2. the team will continue to adjust. >> what about some possible tailwinds, with respect to pricing? there's a shortage of vehicles and prices seem to be pretty

robust. how much is that lifting your profitability? >> the strong demand is something that is supporting our strong earnings. when you look at general motors specifically, we have an incredibly strong product portfolio we are offering. we are also working to be more proficient with inventory. many times a truck arrives at a dealer and most of the vehicles on the truck are already sold. we are helping them order the best configured vehicles for their area, using data analytics. that is allowing us to move vehicles faster. even though there will come a point when we have more availability, they will see some moderation in price. i think we still have a strong price -- pricing opportunity. we will be more efficient with all the lessons we've learned in the last six months. >> there's a substantial

investment gm is making into electric vehicles. i know you will start taking orders for the lyric in september, but do you know there will be the demand there? >> we do a lot of customer research and customers are telling us, if it's a beautifully styled vehicle with 300 miles of range, it's affordable and if there is a robust charging infrastructure, they are very interested in owning an electric vehicle. it is an outstanding customer experience. that's what we will need to do to drive tv adoption, but i'm confident that we will. when you look at the strong demand and strong interest in the lyric, that will begin to take orders next month, i feel very confident that we will see very strong ev adoption. haidi: plenty more to come on

"daybreak: australia." this is bloomberg. ♪

shery: here's a quick check of the latest business flash headlines. hit attach e to buy the real signaling arm as it seeks to expand in europe. hit attach he says the purchase -- unilever is set to have started to look for potential suitors for a large part of its tea business. first-round bids are expected in september. units in indonesia are excluded. don't miss an exclusive interview ahead, rakitin is

buying the u.s. tech company on a valuation north of $1 billion. the founder and ceo shares his plans. haidi: looking ahead for the day on what lies in store for australia and new 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.

>> currently, in the real-time data i have seen in our portfolio, it actually has not manifested itself in that much of an impact, which is pretty amazing, even in hard-hit states like texas, florida, and nevada. tourism seems to be hanging in there but undoubtedly, it is something that needs to be focused on and i think when it comes to return to work in cities like new york and san francisco, i think you will see more caution as we head into the fall. >> the challenge is how do we get people back to working in

the city? if you travel around the rest of the country, there is a lot more economic activity going on in the core areas within those cities. >> they stay pretty cautious. you have the delta virus. we will come through the next month and i think we can be much more optimistic. shery: business leaders weighing in on the spread of the delta variant. the u.s. continues to struggle with the resurgence of covid cases. voters reporting that the biden administration is evolving a plan to require nearly all foreign visitors to the u.s. to be fully vaccinated. tim leads our health care team. what do you know at this point? tim: the proposed vaccination mandate for foreign travelers, we know very little so far.

we know that the biden administration has been really taking a result that's in the past few days to bring up vaccination penetration in the rise more broadly, trying to encourage more people who live here to be vaccinated so i think that if they are making an across-the-board effort to emphasize vaccines as a way to control the pandemic, then this plan, if accurately reported, might reflect more broadly on that effort. haidi: as the u.s. hits something of a plateau or when it -- plateau when it comes to vaccination members and given herd immunity threshold may be much higher, are we going to start seeing the vaccination campaigns for younger children? timothy: yes. i think that we are still, as we explained in our story today, a little bit out from that. most studies on five euros to

11-year-olds and even younger children are ongoing. i think that the former group of school-aged children, not adolescents, but elementary school children, we expect data early this fall. september, october, and there might be vaccinations by early next year for them. even younger children, preschool aged, a longer wait for that group. haidi: a lot of parents have already given -- a lot of them are going back to in person schooling without the assassinations. timothy annett leads our health care team. royal caribbean says the delta variant is having a lot of impact. a cfo spoke about the demand for sailing after reporting an earnings miss in the second quarter. >> we are absolutely ecstatic now that we have over half of our fleet back in the service. certainly, the variant is the

topic of the day but our ships are operating and our guests are having an incredible experience. we are seeing a modest, even nil cases on our ships. while the variant is out there, overall, we are seeing bookings and experience accelerate. >> you said almost nil cases. there were about six positive cases on one of the ships. how do you handle situations like that? customers feeling safe this time around on cruises despite may be some cases? jason: we have spent the past 16 months working with our sales panel as well as other agents these to really try to perfect the best of our ability, our protocols. the protocols are working in combination with vaccinations. herein there, there are cases that occur, but overall, what we

are seeing is that they are a fraction of a fraction of what we are seeing on a day-to-day basis in society and that is because of those calls combined with vaccinations. >> there is a lot of work here to view and you seem to be doing it over there at royal caribbean. i assume this also has to come at a cost. the additional protocols and safety measures have to certainly be weighing to some extent on the company and i am wondering, has it gotten to a where it is significantly affecting margins? if so, what is the company doing to try to mitigate that? jason: we take the health and safety of our crew very serious. a lot of these protocols are just enhancements with having minor cost increases. there are some costs as it relates to testing and getting our crew back up and running and vaccinated and so forth, that we are incurring, but what we see is, as time is going on, the

cost of those costs are reducing and we feel that they are very manageable and we think that they will begin to evaporate over time. on the other side, we have really focused on reshaping our cost and improving our margin profile as we returned to service. >> how is it on the labor front? we had so much anecdotal evidence of friction, of people not wanting to come back to work at the moment. how do you find it on the ground? jason: we have 75,000 amazing crewmembers and employees. i know that this might be a surprise but we have had no issues generating demand from our crew to come back onto our ships. shery: jason liberty there. let's get to the first word news with vonnie quinn. vonnie: thank you. in the united kingdom, anyone 16 and older will be able to be vaccinated against covid-19.

the government made the change after a recommendation from the health advisory committee. the panel says 16 and 17-year-olds should get the pfizer shot. officials are not recommending vaccinating anyone under 16 unless they have underlying health conditions. indonesia has recorded more than 100,000 coronavirus deaths, becoming the second asian nation to breach the threshold. it is adding fewer numbers of cases daily than the united states, its lower vaccination coverage and less equipped health care system has led to a higher death rate. only a percent of indonesians are fully inoculated according to bloomberg's vaccine tracker. almost one week after flopping in his debut, robinhood made a comeback today with an 82% stock surge. about 50% higher. speculation is swirling about what is fueling those moves. wednesday, march 1 day of options trading on the stock and kathy wood is continuing to add

robinhood shares. a belarusian olympic sprinter has had a feud with team officials. it made her feel she could not safely return home and she landed in warsaw on the humanitarian be set. authorities confirmed christina flew in from tokyo via vienna. in a statement, she said belarusian team officials tried to force her to fly home early after she criticized them. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi. haidi: the biden administration has approved its first arms sale to taiwan in a potential $700 million deal amid rising tensions with aging. let's cross over to stephen engle for more. this is obviously going cannot help that relationship. stephen: that is right. obviously, it comes at a tough time between china and the

united states and we are looking for signals from the biden administration on what their taiwan policy will be and how that affects the china policy, obviously. it is not a big deal, 750 million dollars, the full price value, and these are more conventional weapons systems with some advanced capabilities. howitzers, more advanced, land defense, you know, weapons. gps guided system kits for the existing systems that taiwan has so not high-tech but keep in mind, you know, xi jinping, as recently as the 100th anniversary celebration of the communist party, talked about china's historic mission to regain control of taiwan. the u.s. defense secretary has labeled china the key threat guiding defense spending priorities. we have seen more and more incursions by pla aircraft in 20 21. in 2020, we had 87 incursions by

pla aircraft into taiwan's air defense identification zone. now is more than the previous five years combined. already, in 2021, we have surpassed that level, 87, in 2020. in taiwan, in march, they announced 76 million dollars more spending to counter these incursions into the adiz.obviously , this latest deal, which has to get approval for the deal between bae systems and the taiwanese government before it will be signed in delivery dates sealed, this will rankle beijing. shery: if it goes through, how would it compare to past arms sales to the island? stephen: it is not a big one but it is symbolic because it is the first one under the biden administration. over the last year or so of the trump administration, they increased the number of arms sales including fighter jets. there is a pending deal with boeing for hartman missile

systems. and more traditional systems, extended range, land attack missile systems from boeing, a $1 billion deal. lockheed had some artillery deals, for the 36 million dollars. raytheon, $367 million worth of surveillance and reconnaissance sensors. there was a big deal under the trump administration but this bite and deal is probably a feeler kind of deal -- biden deal is probably a feeler for white beijing's response will be and we will have to see how the biden administration goes forward in their policy with taiwan and those arms sales, which is a very contentious issue between china and the unit is dates -- united states. shery: stephen engle with the latest. time now for money calls with sophie kamaruddin in hong kong. what is on your radar? sophie: i want to highlight this chart from our colleague which is demonstrating some divergence

between u.s. yields versus south korea and new zealand. the two-year kiwi yield above 1%. we are seeing the two-year rate back above 120, this on tightening bets. markets are pricing for three rate hikes from the bank of korea by early 2023 and any tightening beyond 125 according to s&p will be challenging as that will risk hurting private demand. flipping of the board, frontloading rbnz tightening bets which raises the question if they are overshooting target with 75 basis points of rate hikes baked in for this year alone, the base case over goldman. they see the risk that the cash rate could be increased by 50 basis points this month given we saw a strong move for the labor market higher faster than expected to pre-pandemic levels. haidi: coming up next, we are taking a look at the world's largest money transport provider selling one of the units for $1

billion. western union ceo will be joining us, just ahead. this is bloomberg. ♪

haidi: we have earnings when it comes to singapore bank. dbs coming in with first-half net income of 3.7 one billion

sing dollars, a gain of 55% year on year. watching that dividend payout. $.33 per share, 33 sing cents per share after the monetary authority of singapore lifted their dividend cap so it does follow on the back of the a similar trend we have seen from other major banks. coming in at 1.45%. nonperforming loans ratio at 1.5% and net income at 1.7 billion sing dollars with 868 million sing dollars in net fees and commissions an allowance for -- we have seen broadly beat on consensus when it comes to the singaporean banks, broadly all exceeding estimates and expectations there. the world's largest payments companies are profit increased

by more than one third in the company's second quarter. it planned a sale of western union business solutions for 910 million in cash. western union president and ceo joins us for an exclusive interview appeared wonderful to happy with us. we appreciate your time. let's look through the sale announcement first. what is the strategy and motivation? is it about focusing on businesses? >> simply put, that makes us focus on a huge market of work on an opportunity -- $700 billion. additional to that, there is an opportunity for cross-border transactions of $2 trillion and we are building a unique platform which allows connecting

137 currencies in a very agile and fast way. most of our transactions are paid on the minute in real time and that is what the market is asking. that is what the market is, you know, the need is there and our unit cross-border technology platform allows that and we are going to have more focus on that. also as we outlined in the q2 results, you could see that we are in a valid position. it is going extremely fast. customers are using more and more. we are by far the largest in the industry in the digital environment and this growth rate is from a bigger base. we are sending money from 75 countries digitally and that gives us more focus.

has the growth in digital revenue been largely because of disruption from covid? we know people have not been physically able to transfer money. how has that flown through to your remittances business? good question. we have been on a channel -- hikmet: good question. we have an omni channel. more customers are using digitally from their apps or mobile phones, sending money to our 550,000 locations. billions of accounts globally. digital to digital transactions are the fastest growing part of our business and we are happy that the growth is there. digital business is well-positioned to serve different customer needs. we have our omni channel strategy, serving different customer needs.

it is the fastest-growing. it is a huge business but at the same time, we are very pleased with our retail recovery, the sequential growth of retail in some parts of the world, and i believe that western union is well-positioned to respond to customer needs. shery: will in-store transfers be driving earnings now for the rest of the year? how much is fully operational? hikmet: most of our -- we have seen as an essential service. hard-earned money to support your loved ones somewhere in the world and the customers are extremely loyal. most of our locations are active. we have 550,000 locations globally. we just added 18,000 locations to our network again and this is still growing, sequentially growing also. strong growth comes from sending money digital from your phone,

for sins, but at the same time, really paying out one of the locations for on an account. the omni channel strategy works pretty well and having this president in 200 countries and having it helped a lot. shery: what is your stance on cryptocurrencies given remittances are looking towards the crypto world? hikmet: if you look at western union, we are a platform for all currencies, from dollar to rupee, from euro to pesos. you can go to 137 currencies. why not also cryptocurrency to fiat currency translating? we have the platform to do that and we save some interest. as long as it is in a regulated environment, we are ready to

serve any current the in the right way as we do today. haidi: does that mean more tieups and integration with services like coinbase and crypto wallet? hikmet: we have the platform. we are serving the only cryptocurrency, we are serving also banks. one of our strongest growth areas is white labeling which means we are replacing the current system with our platform because the banking system is not easy to use it. it takes long days for the money somewhere in the world with our plan on, really serving the bank but also other financial institutions. also cryptocurrency institutions to serve customers in a way that is convenient for everyone. shery: through the romans close that you see, can you regain through the openings and

economic recoveries are happening right now? hikmet: yes, we do. great question. obviously, we see a strong growth rate in the areas where the western nations have been done, where reopening is done. very strong in america, the u.s., canada, eastern europe, the union, sending money globally area one of the strong areas we see currently is that the opening of latin america countries. growth rates in that in america. that has been a big factor of our q2 results and we are happy with our q2 results. we did beat estimates and we are continuing to grow on that. shery: so interesting, hikmet ersek. thank you very much for your time today. western union ceo. dbs listing its dividend. we breakdown down the results, next. this is bloomberg. ♪ s bloomberg.

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haidi: let's get back to dbs earnings that just crossed the bloomberg. let's get to our chief international correspondent for southeast asia, haslinda amin, for more. we are expecting earnings from what we saw after the other banks yesterday. what were the key takeaways?

haslinda: a strong quarter. when you compare to the first quarter, it is slightly slower. we have net income coming in at 1.7 billion sing dollars, an increase of 37%. this is on the back of a 70% up to the first quarter. that was really an outperformance in q1. in terms of dividend, also higher than vented. dividend payout at $.33 a share versus 18%. what is interesting is the loan provision. it is lower on the back of a 99% back into one but not the same as global peers we saw -- that suggests singapore banks are pretty much cautious. it remains in wait-and-see mode see how the recovery pans out. that is a key takeaway when it comes to singapore banks. dbs suggesting that's that. shery: what is the outlook

there? haslinda: looking pretty good. dbs earned 70% of its income from outside of singapore. the likes of india, china, and it continues to grow and what we are watching out for is whether or not it takes an additional bank in that bank where it brought $1 billion and keeping it on citi assets in india. it said it is interested in buying that because of its wealth and his been business, credit card business. if it were to buy that, it would come at the cost of $2 billion. it cannot afford to do that without, you know, trying to raise additional funds area keep watch of those two. shery: haslinda amin in singapore. don't miss an exclusive interview ahead. japanese e-commerce giant rakuten's ceo joins us. that is it for "daybreak australia." "daybreak asia" is next.

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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 and. our top stories this -- i am shery ahn. our top stories this hour. hawkish comments from the fed vice chair. as global virus cases top 200 mi