haidi: very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: i am shery ahn in new york. china's crackdowns and the spreading delta virus set to subdue asian risk appetite despite another record close on wall street. beijing tightens funding for struggling residential property developers, restricting investment from private equity. airbnb tumbles in late trade

after blaming the covid resurgence for on explict did declines in -- unexpected declines in bookings. surprisingly, we continue to see these very small market moves. some investors saying the market is full of very reluctant bulls. this is the narrowest range since 2019. the s&p 500 swinging an average of just .5% each day into august. it could be the calmest month since november 2019. haidi: how do we characterize this trading action? a lot of this is to be without a variant concerns over what this reopening looks like. we are hearing from another tech giant. facebook saying they do not expect to go back in the office until january 2022. really just adding to the number of companies, whether it be big

tech like amazon and google or wall street really pushing back please return to office plans. shery: as we head towards the china open, we are watching with the reaction will be in the markets have the latest that we heard is that china is halting approvals as well so continue to see the crackdown in different parts of the economy in this chart actually showing how china seems to be trying to iranian risk and across china, property developers are one of the biggest hit as beijing tightens scrutiny. hainan topping the company's defaulting this year. haidi: evergrande lives to survive another day. they have known extensions from three major creditors and we continue to follow the story and the impact when it comes to systemic risk closely but it looks like may get a little bit of respite given this seemingly endless string of demands to pay out their unpaid debts. look at how we are setting up when it comes to market that are

trading as well as the future sessions as we get in one hour away from the start of major trading here. new zealand up by .3%. we had better-than-expected manufacturing pmi numbers as well as inflation expectations rising to a seven-year high. in sydney, upside a .4% ahead of a national cabinet meeting to discuss the handling of covid as we continue to see pretty high numbers in particular when it comes to greater sydney which is remaining under lockdown. mckay futures trading in chicago, pretty flat at the moment amid these ongoing concerns about the covid outbreak in tokyo. let's get you to vonnie quinn, who has efforts what headlines. vonnie: the pentagon is sending 3000 extra u.s. troops to afghanistan to help evacuate lemat spirit the u.s. currently has 4000 people at its kabul industry, many of them american citizens. president biden's partial evacuation order underscores how badly the u.s. has been caught off guard a rapid taliban

advance. the islamist group is capturing 12 of at dennis dan's provisional capitals in about a week. alibaba says it is setting up a hotline and creating a team dedicated to investigating sexual harassment complaints and it says an inquiry into the alleged rape of a female employee by her manager is almost complete. the case has ignited a debate about sashimi across china tech industry. the allegations went viral and the ceo called the companies handling of them a humiliation. the u.k. chancellor of the exchequer promised the u.k. will not see a return to the austerity policies of the last decade. he did a round of broadcast interviews over the two men's approaches to spending. he said he works well with the prime minister. he refused to deny he wants to succeed johnson one day. the u.s. cc says covid vaccine booster shots are not

appropriate yet for anyone without a compromised immune system. the fda is expected to approve a third shot soon for high-risk people and has been told -- pfizer and moderna on supply. nobody should speak out -- seek out a booster shot on their own. 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: let's delve into some investment strategies. our next guest says not to look for growth versus value in the growth that you are buying. the head of active equity joins us now. always great to have you with us. just explain to us how you would find value in growth. what does that look like? >> it is a great time not to pick or choose a group. certainly, as you see, covid,

the stay-at-home stocks tended to be the more value-oriented docs and then you had the reopening stocks -- i'm sorry, the growth stocks. they tended to be the more value-oriented stocks, but the market has spread out and both of those groups can work in how you find value in growth is as a fundamental active manager. what you do is you look from bottom up and you pay attention to the growth rate of the company that you are investing in and you pay very close attention to the multiple that you are paying. it is ok to invest in a company that is growing single digits as long as you are paying the right multiple for it. if you are paying for a very fast-growing company that is a grower and high multiples, that might be appropriate as well. our teams and our investment teams are very focused on paying the right multiples for the

growth rates that they are investing in an trying to find the secular winners over time. shery: would you be paying the right price of he got into health right now? they are attracting attention but they have been the worst performer in the past five days. ann: i do think that there are areas in health care that have lagged the market in the near term. they had this nice rally and then they kind of lagged the market. especially in the med tool and device space, that is an area that a lot of our team finds attractive. there's some secular winners in that area of the market. i would say that is a bit we are very interested in. haidi: what are you interested in, bearing in mind that we are starting to see cracks in the strength of the consumer? ann: it is such a broad area.

on the retailer side, between online and birks and mayors are, there is a place for both but it kind of goes back to not what is winning in this cycle what what is going to win in the next one. and so, certainly, we see and we know as consumers ourselves that online will continue to gain share. there's many companies that have both. on the retail side, from a bottom-up perspective, there are companies on the retail side that we like. on the services side in consumer discretionary, it is hard even with the delta variant to stop people. we saw some slowdown in the numbers. it is hard to keep people back or put people back in lockdown. there is this pent-up debate and i think we will start to see that happen again. that is another area where our

teams, there is a breakdown in valuation back into those areas. haidi: i want to get your views on when we start seeing rising yields hurting the tilt that receipt for cash towards stocks. take a look at this chart which shows we have seen real yields easing 15 basis points from a record low. lots of speculation that yields have either bottomed or really cannot stay this low forever. what is the level that you are looking at where you start worrying about the incentive for stocks versus bonds? ann: i focused primarily on the equity market. the fixed income and equity market, they are constantly battling not even against one another but they pay very close attention to one another. we all know at some point that the fed is going to taper. none of us argue about that. and raise rates.

as an equity investor, we are paying close attention to the bond market. it is all dependent on inflation. that is what we know the fed is focused on. broadly, what we are not focused on could be the thing that surprises us the most. in addition to interest rates, tax rates could also be the driver for the u.s. market in 2022 so that is the thing that could surprise the markets to the downside. i love your intro saying it has been calm the last few days. it has been calm but we have not seen -- we have not seen even a 5% decline. we are kind of ready for a correction even though there might be room on the equities side. haidi: great to have you with us, ann miletti.

china is cutting another funding channel to its struggling property developers and government-backed agencies say private equity funds will not be able to raise money to invest in residential projects. our markets reporter joins us now. how significant is this incremental tightening when it comes to fundraising channels? >> thanks for having me. this is a continuation of the government campaign. they said housing is for living, not speculation. this is a significant move. private equity has been important social funding for developers. team percent last year went to the real estate industry. it makes life much more difficult.

haidi: some of the largest developers are struggling under massive amount of debt. at least it seems that evergrande is getting an extension from major creditors. ye: at least three major creditors agreed to give evergrande more time to repay their loans, essentially giving them some breathing room for them to find a solution to their that problem including selling assets. the news came at the same time with another bloomberg exclusive, saying that beijing has instructed the province, where evergrande is based, to map out and plan to manage evergrande's debt. local government has set up a team to coordinate with banks and other creditors to help it to avoid the crisis. they don't want the problem to

become disorderly and that is probably good news that the government is getting more involved. shery: ye xie with the latest on the chinese markets and some of those property developers. we will be talking about disney surging post market after streaming subscriptions beat estimates in its latest results. our earnings analysis, next. alibaba is creating a team dedicated to investigating sexual harassment lanes. it is a moment of reckoning in china's #metoo movement. we will discuss that with our guest later. this is bloomberg. ♪

shery: shares soaring in late trading. also reporting better-than-expected earnings. its business grew and theme parks reopen. su keenan joins us now with the latest.

we thought that perhaps with the economy reopening, subscriptions would drop, but they actually rose. su: they came in way ahead of expectations and this combined with the rebound of parks and other aspects to put disney beating across the board. sales came in at 17 billion and that beat wall street estimates by far and it shows a huge increase in demand. disney plus subscriptions, 160 million. this is a sign of how quickly disney has scaled its streaming, direct to consumer business generated 4.3 billion dollars in sales in the quarter. the cfo said 40% is going to digital and streaming. streaming is already more than half the size of disney's linear tv network business. the strong results had disney sharers rallying after the report. it was up as much as 5.9% and pretty much held those gains.

$189 a share. bob is bullish on parks. that is a division he was running the he became ceo. he says the demand in the fourth quarter is already outpacing what it was in the prior quarter. that is despite the increase in the delta variant. the business with revenue, bringing it back to profitability. with the effects of the pandemic compared to last year, the company faces challenges. it expects covid related costs to reach an estimated $1 billion in fiscal 2021. that is because they expect to have to comply with new regulations coming from state and federal government as well. shery: analysts are worried about how the company is balancing theater releases. su: they are wondering if one

will undercut the other and at the streaming business will continue to go at that rate. scarlett johansson, the star of the black widow, she recently sued his knee -- disney, almost a landmark lawsuit, accusing disney of undercutting the box office receipts that determine her salary by releasing on streaming earlier than had been promised. he appeared to be referring to johansen without mentioning her by name. he said hundreds of agreements have been made and those have gone smoothly. the ceo also said the company has "honored its contracts with movie stars>" he -- movie stars." he was pleased when talking about the future of disney plus, saying they are pleased with term levels in spite of few price increases. from the companies standpoint, a

strong outlook. back to you. haidi: su keenan with the latest on disney. airbnb is tumbling in after trading after projecting a decline in bookings. ed ludlow joins us now. wall street is not liking this. is this really the delta affect or the delta fear? ed: it is delta in the outlook. they have such a strong quarter, really seizing on the rebound and travel in the first six month of this year. it is not the year on year comparison but the pre-covid comparison my back in the same quarter of 2019, and essentially, what airbnb is saying is that the quarter that we are in right now, won't even match the same quarter in 2019. it shows how significant the impact of the delta variant is. there is also an issue of seasonality with this. peak summer is july and what they are saying is that they have seen pullback since july and terms of bookings.

some of that could be attributed to vanity but they also said that delta plays into that as well. they are talking about growth bookings had the volume of bookings people make in transactions, not dollars. we are still on track to have record revenue not just in the corner just gone but in the quarter to come as well. airbnb looking strong. >> did they find any interesting trends in travel and bookings? ed: two, actually. longer-term bookings are definitely on the rise, bookings or 20 days, and think about the psychology of the consumer. we are in the office. i would love to be on a beach typing away on my laptop, updating my notes. i am here in the studio, no problem. but a lot of people are still working from home and they are choosing to do it away from their usual residences so those bookings are still strong and still around. the more worrying thing for investors is international travel. u.s. domestic bookings are

strong. booking in your own country, strong. the delta variant is still having some kind of impact on the decision that consumers are making. haidi: ed ludlow with the latest on airbnb. coming up, president biden is sending free thousand american troops to kabul to help evacuate more diplomat -- 3000 american troops to kabul to help evacuate more diplomats. it says it is not abandoning afghanistan. this is bloomberg. ♪

>> the pentagon says it is sending 3000 extra troops to afghanistan to help evacuate diplomats. the u.s. has more than 4000 people at his kabul embassy, -- at its kabul embassy.

emily wilkins joins us now. what is the latest that we know on this effort? emily: we are hearing that the pentagon is going to be sending troops back into afghanistan and kabul to evacuate diplomats from the u.s. embassy. they are drawing down steps for diplomatic presence but the embassy will remain open and it will continue its work according to a state department announcement. the u.s. has 4200 people at its embassy and a sizable portion of those are american citizens. this comes at the biden administration is under increasing pressure and criticism as u.s. troops withdraw and as we see the taliban continue to move in the country to gain strongholds in various cities. it is a question when kabul might fall to the taliban control. shery: mitch mcconnell opposed

the drawdowns from the beginning. where does congress stand in all of this? emily: there are many members of congress and many democrats, members of the seven biden's own party, who question this idea and say that their worst fears are playing out, that you don't need the afghanistan forces being able to hold back the threat of the group. matter and louder criticism, asking the biden administration to do something. they are asking for more support for the at and troops. and at this point, it remains to be seen exactly what is going to happen. former president trump and president biden want to withdraw forces from afghanistan. it is something that is popular among the american people but now that it is happening, you have seen these headlines about the taliban taking over concerns about what the country's future

is an increased pressure on the biden administration to do something to push back. shery: tell us more about the taliban's advance in the country. emily: they have been taking over a number of provincial cities. they have not yet taken over the capital, but there is a sense that they could do so potentially within the next few months according to some estimates. that would be when they would do something like that, and this is something where there has been a lot of concern. a couple people have been surprised and exactly how quickly the taliban has moved and how much they have taken over different parts of the country. shery: emily wilkins with the latest on the u.s. and afghanistan. here's a quick check of the latest flash headlines. joint venture that runs coffee chains is china is said to go public via a spac listing. the deal could be worth $1.8

billion and an announcement may come this week, around 150 tim hortons shots across 10 chinese cities with plans to expand that to more than 1500 outlets. we have learned that beijing capita group is mulling the sale of its waste management unit which could fetch about $1 billion. beijing capital is said to have asked investment banks for proposals on the potential investment and could consider selling a partial stake in the business. a conservative outlook for the current quarter, citing the resurgent covid-19 outbreak in china. the tepid forecast overshadowed the internet search giant push into cloud devices. baidu swung to a net loss of $90 million in the second quarter after marking down the value of its stake in quite sure technology. -- in a technology company. coming up later at 9:00 a.m. hong kong time, we will speak with a ceo about the companies

earnings and plans to list its food unit in london and later on india focus, an mp who has become a thorn in the side of narendra modi. plenty more to come o

shery: we are counting down to the start of trade in tokyo and seoul. samsung electronics vice-chairman jay y. lee said to be released on parole, jailed for a second time in january after a conviction on bribery charges. we are watching sk hynix after a downgrade from morgan stanley. the bank lowering its view on south korea's tech sector to cautious -- earnings are out. over in japan, coronavirus concerns underlined after it

tokyo advisory panel. experts say it is impossible to control the spread of covid in the capital. toyota also saying that it is suspending its operations at its plant in brazil due to a shortage in parts. we aren't expecting results in companies -- -- we are expecting results in companies. haidi: we have been talking about this already. the spread of covid-19 in the capital is "impossible to control." our guest to said infections are reaching disaster level. his comments come as the government considers the end of august. our politics reporter joining us now with the latest from turkey. with the paralympic games about to begin, the virus situation and the vaccine push really garnering a lot of criticism.

>> definitely. the expert panel did say the virus situation in japan is out of control. a lot of experts -- one concern a lot of experts have had is the message having the olympics sends. they have been under successive states of emergency and they have no legal enforceability of these restrictions so there is some concern that having the olympics while also asking people to stay home and be careful is loosening the effect of a lot of restrictions so people are very concerned. shery: one has been the government response so far? we have seen prime ministers two guns approval ratings relief fall recently. >> his approval ratings fell to

the lowest they have been since september when he took office and that is very bad news for him. he faces a party leadership election possibly next month. he is in a somewhat precarious position. they introduced a series of states of emergency but they have become less and less effective over time. people are just ignoring advice to stay at home. bars and restaurants are staying home despite the regulations, ignoring these regulations that say they should close at 8:00 and stop serving alcohol. we are seeing the greater spread of the delta virus in the capital and elsewhere. haidi: how is the vaccination drive going? that has been a huge part of the issue. lisa: yes, sir japan earlier

this week reported that it had given over 100 million shots of the vaccine. it covers a little over one third of the population. that is really below other developed countries in the u.s.. half of the population fully vaccinated. additionally, this vaccine is very uneven in japan. it covered the elderly demographic. it includes 80% of japanese elderly over the age of 65 have been vaccinated. the elderly are more prone to get serious symptoms or die from the coronavirus. it does leave a big gap where a lot of the youth population who are more prone to ignore the virus rules or go out our left on vaccinated. huge explosions we are seeing in the infections are mainly -- 20's and 30's and there is a lot of concern about how you get the

huge population. additionally in japan, access is very uneven so depending on where you live, if you are young, you might not actually be able to get the vaccine. shery: is the election coming up in november enough time to turn things around? >> that is very much still up in the air. we know that the ruling ldp is unlikely to actually lose power altogether. but it could lose a lot of seats. that could be bad news for suga. he could be blamed for not managing to keep the huge majority that the ldp has had in parliament for a long time. a lot depends on where they managed to turn around the economy and with the delta virus spread and the various states of emergency, we are not expecting a big recovery in the economy and the gdp figures are due out on monday. shery: isabel reynolds and lisa

do, thank you for joining us -- lisa du, thank you for joining us from tokyo. let's see if japan is doing any better. most have reported earnings. our tokyo stocks reporter joins us now. what do we see on the corporate results front? >> the understanding is that the earnings have not been that bad. for example, a lot of companies -- not a majority, but quite a few companies have announced upward revisions to his earnings profits, earnings profit outlooks. the reaction to these positive earnings have been very muted. probably because of the continued rise in the virus cases. as isabel mentioned, the following support rate for suga. haidi: some of the biggest names

have been a result of the underperformance, the likes of softbank. >> a lot of the big names you just mentioned, also, we are not seeing any huge buying for these names which are -- which have a big proportion on the nikkei gauge and for the time being, it is hard to say that we'll will see any huge buying in the near term so we have to -- we are in a lull overall until we get any positive catalyst as a whole. >> we continue to see this underperformance when it comes to the nikkei versus the topix. what is happening on that front? min jeong: there are two main reasons for this performance gap . unlike the u.s., where the reflation trade has hit its peak

according to investors, investors in asia are still kind of knitting on the value stocks which tend to be more sensitive to the business cycle but the nikkei has a high proportion of growth stocks, growth and technology stocks rather than value stocks. the buying has been stronger for the topix over the nikkei. more japan specific reason is the absence of the rj buying. boj's etf buying program has been providing huge support for the nikkei for a long time but the bank has discontinued buying of any nikkei linked etf's earlier this year which has been a negative factor for the nikkei while the topix continues to be supported by dear jay buying, contribute into the performance gap of these two gauges. haidi: bloomberg's tokyo stocks reporter, min jeong lee, with a roundup of earnings seasons for

japan. japan's futures are pretty muted compared to the rest of the region. the ongoing covid concerns about the comments from that expert panel saying the covid infection situation is out of control there. lots of doubts as to whether they can emerge from that state of emergency. new zealand paring some of the session highs, really strong manufacturing pmi members out of inflation expectations also at the seven-year high ahead of the rbnz next week. sidney futures up by .4% as we look for more details as to the pathway out of covid from the national cabinet meeting that is to be held later on this afternoon as well-paid when it comes to nikkei church trading in for, we are seeing outside of .1%. alibaba is trading a team dedicated to invest in getting sexual harassment complaints, a moment of reckoning and china's #metoo movement. we will discuss all this with

the managing partner, next. this is bloomberg. ♪

vonnie: this is "daybreak asia." i'm vonnie quinn with the first word headlines. that francisco requires proof of covid vaccinations for indoor patrons.

the mandate extends to large indoor spaces such as theaters and entertainment venues. new york city imposed a less severe mandate last week requiring indoor diners and gym-goers to offer proof of one vaccine dose. people left hong kong after the implementation of the national security law that curtails protest and dissent. more than 89,000 residents left in the 12 months through june according to government data, a 1.2% drop. that brings hong kong's current population to seven point 4 million people. canada's prime minister, justin trudeau, is expected to call a snap election this sunday. he is looking to capitalize on polls showing his liberal party with a large enough lead to retake a majority in the legislature. the vote will reportedly be held on september 20. public opinion polls show the liberals with 36% support, near

the thresholds muted to regain control of parliament. 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 vonnie quinn. this is bloomberg. -- i am vonnie quinn. this is bloomberg. haidi. haidi: china's #metoo movement has made headway. over the past week, china's internet blew up over an alleged sexual assault scandal at alibaba. it is a rare case that lays bare the country's struggle with #metoo movement. joining us now is the managing partner at a venture company, a women led firm. really wonderful to have you with us. were you surprised out of these revelations that came from alibaba and is this the tip of the iceberg when it comes to culture in tech? >> finley the tip of the iceberg.

this incident was really a tragedy. imagine a professional woman having to -- passing out flyers that said "my boss raped me" to a bunch of colleagues, the largest company in china. this is horrifying. the icebreaking culture and toxicity of workplace culture in china is not unexpected. i am really saddened by it but glad to see that women are really speaking at this time. haidi: what kind of institutional change needs to happen? pocket: i hope this becomes a real turning point for chinese tech company culture and for the nearly 40 million companies around china. for alibaba, such a huge globally known company.

they don't really have antiharassment policies which is just crazy. i hope this tragedy really helps more companies to realize there are real consequences and we do not have the infrastructure in place. the alibaba released some new policies around internal plans to reinvent what the policies would be. i hope other companies would do the same and do even better than what alibaba did. shery: how much change did you see from the initial #metoo movement globally that we saw a couple years back and now? do you expect more changes coming from the scandal? pocket: yes, 100 i think the chinese society is becoming more and more aware of gender inequality. public voices and united voices from alibaba employees this time

really played a very of her role. a change catalyst. i expect this to continue. i think women are at a point where they don't want to tolerate this anymore. this time, the unanimous support is unlike anything i have seen in china. shery: you invest in venture capital firms that are women led. do you looking to their sexual harassment policies when you make those investments? pocket: yes, we invest in women startup founders, mostly in our north america and china. not only we do so in checking the policies for antiharassment and culture as part of our due diligence. we encourage them all to do that but now it is pretty obvious how big of a consequence this can create but at the same time, it can protect your investment.

you can make sure the company has a working culture that is gender friendly? haidi: when you're making a decision as to what you are investing in and the society that you should put your money where your mouth is, what are the warning signs you are looking out for, what are the positive signs you're looking out for that help you make that decision? pocket: it really depends on what stage of a company so we invest in early-stage startups so there might be one to 20 employees. even though the company might be small, i look at whether they have a good work place culture and what is the ceo's work style and whether there is a pretty flat organization to begin with because culture starts -- the moment you start a company, even if it is just one or two people, it is important to establish things from the very beginning.

shery: pocket sun, great to have your perspective. mckinsey scotts money bombs have the world's fourth -- how they are transforming american philanthropy with billions in donations. this is bloomberg. ♪

shery: here is a look at commodities. workers at the mine in central tonight have begun strikes. we have seen copper prices retreating from record highs we saw earlier in the year. iron ore falling to a four-month low. we continue to watch what china is doing in reining in those steelmakers. gold was under pressure right now unchanged. we have the ppi data, labor data and gold really reacting to those rising inflationary pressures and we are watching corn at the moment at the 573 level given that we got the much expected -- the report on supply and demand pointing to shrinking grain supplies. we have seen it fall the most in two weeks after we saw it gaining ground more than 50% this year. we continue to see this heatwave

in the u.s. and it seems the markets have already priced that in because we are expecting milder temperatures next week. but haidi, it is really, really hot right now. in new york, we are talking about record-breaking heat. edison sending messages out to people that they are prepared for this heatwave. we are expecting to see the power grid strained by the most in years. haidi: the airport, for example, if anyone is that jfk, they are expected to be feeling these 93 degree levels of heat, a record that has been standing for half a century. this is a combination of temperature and humidity, as high as 112 according to some meteorologist we have been speaking to. i hope you have aircon, i can say. let's get you a quick check of

the latest business flash headlines this hour. apples main assembly partner is projecting sales of smartphones dropping this quarter on concerns that ship and component shortages may affect iphone production before that critical holiday season. the third quarter is often the peak production seasons of the sector. it is weighing on iphone output. bloomberg learned that amazon is dropping a set of staff guidelines for video games made by employees after work hours. the long-standing policy is within amazon game studios have drawn criticism over the last month after a google engineer posted about them. i'm game developers are calling the rules of draconian. facebook is delaying its u.s. return to the office due to the delta variant covid resurgence. they don't need to return to work in person until next january. this will be the case for some countries outside the u.s. as well.

they had been expecting 50% capacity by september and a full return by october. shery: mckenzie scott's philanthropic giving is propelling her to be one of the most powerful forces in the field, outspending gates and ford foundations annual grants combined. let's get more. where is she putting the money? >> she put different parts of the money into different industries over three rounds of giving since the summer of 2020 so you can see that a big portion of it has gone to universities and many of those are historically black colleges or in nations that serve a largely minority population. there is a huge portion of the giving going to organizations and then there are things like food banks that do

social assistance. haidi: compared to other, i guess, expressions of philanthropy we have seen, how does this rank? is this unprecedented? what sort of company does she keep? >> it has vaulted her to the top of philanthropy. for an individual to give this amount of money in such a short time period is really unprecedented. she said her goal is to give it all away and she is attempting to do that, but just the scale and the time, no one has ever attempted anything like this before. >> do we have any idea of the thought process here? any transparency on how these grants are given away? >> she is very mysterious. each time she has given out gifts, she has put up a post with a list of the organizations she has chosen to give to but

even the groups themselves and say they have not spoken to her. they mostly deal with some of the groups she has chosen to work with as intermediaries. while she has not disclosed to the amount of money she is given to each organization, we tried to do it ourselves, by reaching out to almost 800 of them. haidi: our bloomberg equality reporter with the latest on the giving spree from mckenzie scott. let's take a look at markets as we are setting up five minutes away from the start of major trading here in asia. we are seeing new zealand paring some of those earlier highs. we had positive pmi manufacturing members coming out earlier, inflation expectations at multiyear highs. we are seeing futures up by .3% as we continue to look for hints as to the pathway out of the virus situation with the national cabinet meeting later on today.

nikkei futures are a little bit higher, as that is another city contending with renewed virus worries. kospi futures sitting softer, about just shy of .5%, share it. shery: here is a big note on big interviews coming up at 9:00 a.m. hong kong. we speak with the ceo about the companies earnings and plans to list its food unit in london, and later on india focus, and mp who has become a thorn in the side of prime minister narendra modi. the market opens in sydney, seoul, and tokyo, next. we will see if they follow wall street to those record highs. u.s. futures at the moment pointing slightly down but of course, this coming at a time as well when we continue to see more hints of a chinese crackdown. this is bloomberg. ♪

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shery: welcome to "daybreak asia ." haidi: asia's major markets have just opened for trade. our top stories, china's crack on the delta virus set to subdue -- beijing tightens funding for struggling residential property developers, restricting investment from private equity. and alibaba sets up a harassment

hotline as it investigates a rape allegation against the manager. as the final session of the week gets underway in japan, we are also marking the end of earnings season. david ingles is here and you have been crunching the numbers. it has been a good reporting season. did we see strength in japan? david: absolutely. gold-medal. when you look at the number of companies on the need -- on the nikkei 225. we are virtually at the finish line. 68% of those companies beat on revenue, in line with a very small minority and below a third when it comes to those that missed. when it comes to what matters to investors, earnings, that proportion goes up higher. 73% beat earnings. roughly the same percentage in line.

a quarter missing expectations. i have yet to see a sector that really stood out. consumer discretionary. we're looking at over 80%. looking at 29 out of the 30 companies within that specific sector reporting earnings that blew past estimates. shery: is that the call going to consumer discretionary? not all sectors within japan are created equal. the nikkei on the topics are not performing to the same level. david: absolutely. and to your point not all of the nikkei two to five companies get the majority of their earnings in japan. the call out of jeffrey's this week, to your point topix that nikkei. all the way back to 99. down to a few factors. the boj is stepping back. then you have underperformers in

the likes of softbank. a little bit towards the more broader index in japan. haidi: japanese equities have kind of been one of the favorites according to people we speak to. apac as a whole has been less behind, though. david: completely. in fact even within asia, japan has been left behind. the likes of where you are enough to really a. korea -- you are in australia. korea. this is a key point for 2021, that positive correlation that we usually see in asia to the s&p 500, that has basically disappeared. these two have basically broken up. when you wake up, one of the first things to look at, what are u.s. futures doing. that is much less of an indicator right now in terms of direction for asian markets. i'm guessing this also has to do

with what is happening in hong kong and china. shery: thanks for that. we're also getting the kospi open. south korea, after seeing more losses, we're talking about the longest losing streak since march of 2020. six consecutive sessions of losses. we continue to see the downside, down .3%. tech leading declines alongside real estate companies. we have the spreading delta variant concerns across south korea and a worsening outlook for the chip industry as well. so we had seen the korean won under pressure, continuing its downside, falling to a 10 month low, the lowest since october on concerns with chip exports also dropping last month for the first time since april. take a look at japan. we talked about the japanese markets but this is the open right now. the japanese yen holding at that 110 level.

this remains at a very narrow range against the u.s. dollar after touching the one-month low. we were also watching the jgb after 10 year bonds rose for the first time in five days. we saw the recent increase in yields attracting dip buyers. we also had some acceleration in factory gate inflation. the nikkei underperforming while the topix is outperforming as we were just talking about with david when it comes to the nikkei underperformance. haidi: let's take a look at how things are faring when it comes to be start of trading in sydney. we are seeing a bit of a move when it comes to the bond markets, playing follow the luger in treasury markets overnight getting some commentary from bank of america, really saying it is very interesting we are seeing the delta variant take hold despite the rba still being expected to begin tapering sooner rather than later. aussie rates have still outperformed. we are seeing upside about 10%.

aussie dollar holding at about 73 u.s. inflation expectations and focus there -- in focus there. our next guest, and we bid goodbye to our very own david ingles. our next guest is with us. he sees taiwan and south korea maintaining good signs, and we will get to him now. andrew ferris. why these markets, and where? andrew: it's a mixture a very good mike rock in amaq's -- microeconomics. the trend is very good. in terms of your to date terms, gdp growth in both cases has been inching up very strongly. pmi has been ok.

valuations are not necessarily very good. when you take everything together and shake it up, i like what i am see. i am not speaking just to valuations and metrics. i'm also bringing in reluctantly some gdp growth. for a very simple reason. that is that co-but has not finished. it is no good trying to predict things purely on forward earnings because the delta is spreading. places like sydney are locked down, tokyo is in bad shape. and the other thing the markets have completely ignored was the u.n. report that came out on august 9. it read straight out of the tibetan book of the dead. nothing happened on the power sector. nothing happened in oil, petrochemical. oh my goodness, me. what are these guys not reading? i want to focus strongly on that, because that will have a direct impact on esg's, and

that's very important going forward. we cannot wiggle away from that. i apologize. haidi: no, it's, yeah, i think it's a very emotional and very much a topic that creates a lot of anger when you think about it. but let's cute -- let's get to your point about markets being obsessed with inflation instead of climate. how would you hedge to try and avoid what i think you are saying is an inevitable outcome? andrew: i'm going to take this in two separate steps. all of this will come home to roost in october and november, when they get together in glasgow and they will do the second -- they will sit down and say here's what we are planning to do. of course they are not going to do anything near of what the scientists are are suggesting, but a great deal of things will come.

and the pressure will be on four places. the united states, the european union, and primarily on china, because china is the single biggest puller. you know what is number three or number four depending? india. all of these things will come home to roost in terms of consumption of energy. and of course this is incredibly various for the power sector. on that i include oil, coal, and gas. ok? so that's the negative part. the positive part is anything to do with the word green in front of it. solar energy, wind energy. now, hydrogen is the good-looking boy, or the pretty girl of the year so far, as well as things that are going to suck carbon dioxide out of the atmosphere. pretty straightforward stuff. shery: when it comes to the shorter-term, we have seen increased dividends on buybacks coming from big oil.

is this an opportunity you could take, although in a long-term you would not want to put your money there? andrew: unfortunately there is no such thing now as a long or short term. it is like saying, well, we will go for a couple years and see what happens. the message is loud and clear. we ran out of time. unfortunately big oil already knows it. they have told us what they are planning to do. in the short run we will still buy a little bit of oil. i do not want to spoil the party, but by all means, buy oil, but that is not what is going to happen. shery: let's talk about what you are buying in taiwan and south korea, two markets you actually like. we have seen pressure on the chip sector. morgan stanley announcing they are lowering dram outlook and so forth. can you still buy into those markets when they are still very much chipmaker dependent? andrew: the answer is basically yes, for two separate reasons.

one is what hasn't happened to the chip sector and's -- what the americans and the chinese has been doing, damping down on the prospects of the sectors. both of them have been working on the same line. people have complete forgotten is what the chinese similar is not to similar to what the americans are doing to chinese companies. that leaves opportunity for everyone else who is a major chipmaker, who of course is korea and taiwan. again, it's a relative matter as opposed to saying i like chips, buy chips. that is not quite the case. shery: great to have you back in the hong kong studio. andrew freris there. let's not get to vonnie quinn with the first word headlines. vonnie: the pentagon says it is sending about 3000 extra u.s. troops to afghanistan to help evacuate. the u.s. currently has more than 4000 people at its embassy, many

of them american citizens. president biden's partial evacuation order underscores how badly the u.s. has been caught off guard by a rapid taliban advanced. the islamist group has captured 12 of afghanistan's provincial capitals in about a week. the u.k. chancellor has promised the u.k. will not see a return to the posterior policies of the last decade. -- the posterior policies of the last decade. he says he works well with the prime minister, though he refused to deny he wants to succeed him one day. justin trudeau is expected to call a snap election this sunday. he is looking to capitalize on polls showing his liberal party with a large enough lead to retake a majority in the legislature. the vote will reportedly be held on september 20.

public opinion polls show the liberals with about 36% support, near the threshold needed to regain control of parliament. hong kong's population shrank substantially over the past year. people left the city after the implementation of the national security law that curtails protest and dissent. more than 89,000 residents left in the 12 months ending in june, a 1.2% drop. it brings hong kong's current population to about 7.4 million people. 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. haidi: still ahead, ebay delivers a lackluster revenue forecast on signs vaccinated customers are returning to pre-pandemic activities. we will hear from the eba -- the ebay ceo. next, evergrande gets more time

to repay maturing loans. this is bloomberg. ♪ s bloomberg. ♪

shery: china is cutting another funding channel two its struggling property developer. private equity funds will not be able to raise money to invest in residential projects as evergrande is said to have gotten an extension on its loan repayments from at least three major creditors. rebecca choong wilkins joins us now on the latest. let's start of with the boarded -- this falls very much in line with what the government priorities are. rebecca: absolutely. it very much fits into this broader crackdown that we have seen, but also trying to curb all these risks that have built

up in china's property market. as borrower is have had -- as borrowers have had unfettered access to credit. retail investors have also been able to add to their exposure in various different ways. shery: this of course comes at a time when we continue to talk about evergrande, the property developer with massive amounts of debt. they seem to be getting a little bit of relief, though. rebecca: yesterday was extraordinary for evergrande. we saw multiple headlines. ultimately it closed lower. what we're hearing is evergrande has been able to get some extensions on loans from banks, but at the same time we have also heard a missed payment on projects have been halted. it's a lot of really mixed news for evergrande. haidi: what are we seeing when

it comes to the broader onshore markets? rebecca: this is a really interesting point about evergrande. in the onshore market we have seen things relatively calm, a little more resilient. in the offshore market, that is really where we have seen evergrande ripple through the border market. our credit tracker is showing stress reached new levels of highs for july. we are seeing that when evergrande bonds move in either direction, they tend to take the broader offshore universe of china high-end credit and property bonds along with it. shery: do check out the terminal. rebecca choong wilkins with the latest. plenty more to come. this is bloomberg. ♪ is bloomberg. ♪

shery: big moves after hours

with disney gaining 5.7% after they beat quarterly estimates. they continue to surprise investors. the streaming service reaching now 160 million subscribers. downside pressure for airbnb and doordash though. airbnb booking bid surge on pent-up demand, but there forecasts are slumping. we do have the delta variant spreading across the u.s. doordash also down more than 5%. they did book a record number of orders in the second quarter, but revenue gains were slow. so a little bit of an mixed picture in the after our session. haidi: we are watching ebay as well, giving a pretty lackluster revenue forecast. growth could slow more as more people get vaccinated and subsequently returned to pre-pandemic habits like traveling, dining out my going to brick-and-mortar retail. president and ceo jamie iannone

spoke with bloomberg. jamie: we're on track with where we want to be. revenue up 11%. came in ahead of where all of expectations were. as we look forward to the back half of the year it is what we thought. q2 was a great quarter for us. we sold our -- that's created $20 billion of value for our shareholders. the business is doing well and great return for our shareholders. >> what is the identity we are going for here? you have only been there a little bit of time relative to other industry leaders but you have made a lot of moves already. i'm wondering what is the general identity feel like you're pushing ebay towards? jamie: we are really leaning in towards where ebay can't win -- can win. it's a $500 billion opportunity and massive. take speakers. we're now authenticating

sneakers in both directions. we've now authenticated close to one million items. we added back to high-end watches. we're changing the level of trust on the platform. we're appealing to younger demographic. the sneaker buyer tends to be gen z or millennial. we're making sure we have the best experiences across ebay and it is working. categories are growing double digits. >> talk to us about that high-end consumer. are they willing to spend? how prevalent are they? is any of the stimulus fading impact in the consumer? because you have gone all in on this high-value, enthusiastic buyer? jamie: it is important for us because of 20% are high-value buyers. they spent $800 a year or more, the shop six times a year, or they sell. those 20% represent 75% of our

business, and they are growing. they are growing versus last year and spending more than last year, which is great. we are leading into a lot of our categories. i talked about authentication handbags over $500. we are expanding but we did in sneakers to u.k., canada and australia. this playbook that we have is really working, of changing the customer experience. our customer experience in these categories is over 90, which is really fantastic. that is at the heart of ebay, enthusiastic buyers. they wake up, they grab a cup of coffee, and they go on ebay and start looking for stuff to buy. >> they buy trading cards. i got completely sucked into this world, which is burning so brightly. you are not only doing trading cards, but non-fungible tokens, nft's, the virtual realm of collectibles. how much is that picking up? jamie: we have always been known for collectibles. it has always been a very strong

business for us. just this year we have sold $2 billion in trading cards. that is equal to all of what we did last year. we're investing in that business, because there are real enthusiasts. to sell your trading cards now, you hold your card up to the camera and we recognize it and list it quickly. we just launched a price guide for trading cards because we have 25 years of data, a treasure trove, and that is making a huge difference. and finally -- leaning into that category and seeing great growth. shery: jamie iunknown he speaking to bloomberg. here's a quick check of the latest is a/headlines protector spending a decade trying to revive -- the majority will be paid in cash.

authentic brands has acquired more than 30 names. it recently filed for a u.s. ipo. the joint venture that runs tim hortons coffee chains in china is said to be planning to go public through a spac listing. a deal could be worth about $1.8 billion and an announcement may come this week. there are around 150 tim hortons shops across 10 chinese cities with plans to expand that to more than 1500 outlets. we've learned beijing capital group is mulling the sale of its new zealand waste management unit which could fetch about $1 billion. beijing capital is said to have asked investment banks for proposals on a potential divestment and could also consider selling a partial stake in the business. sources tell bloomberg -- they are boosting pay for first year banking analyst to $120,000. staying on top of the pay scale.

also raising pay for first year analysts to $110,000. the war for talent is intensifying among wall street banks as they face a record amount of deals. haidi: let's take a look at how we are seeing the early part, a half-hour into the start of trading. we're seeing the nikkei 225 extending some of those declines. the kospi is off by about .6%. of course these have been two values favored by analysts, but they have each been plagued by the delta variant and new cases, as well as a slow vaccine rollout in tokyo. sydney stocks off by about .4% with covid still very much in focus. some calling for an extension or an elevation when it comes to the lockdown. new zealand up by about .5%. broader asian stocks a little weaker this evening -- morning.

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shery: we are waiting to see how iron ore starts trading in a few minutes, as we saw futures falling towards a four month low on signs of supply. copper at the moment holding steady, as they continue to seek direction, falling from record highs. workers at a mine in chile beginning a strike. we are looking at the futures very closely. natural gas fell the most in about two weeks, as markets anticipate that temperatures will ease given the heatwave

this week in the northeast in the u.s. crude oil extending losses, below $69 a barrel, as the iea cuts their forecast sharply for the rest of the year. brent also coming online above $71 per barrel but still under pressure. a reversal from the iea given a month ago they were urging the opec aligns to open the tap. our next guest says crude is likely to remain under downward pressure as the delta wave continues to spread. let's bring in founder and ceo of bandai insights. great to have you back. so, was this no surprise in the consumption outlook cut from the iea given what is happening in the world economy with the delta variant? >> good morning. yes, i would say a downgrade in

demand for the second half of this year is very much expected. i think perhaps what was a little bit surprising is the divergence between the iea's outlook and the other two, equally closely watched reports which came out this week from opec and the u.s. they held steady in their demand outlook from the second half unless month. what is a bit surprising to me is the extent to which the iea downgraded, especially q3 demand outlook, nearly 600,000 barrels per day and another half a million barrels a day for q4. it mainly cited china. as far as china is concerned, yes, we've seen relatively few cases, but they have taken quite sweeping measures.

but i feel like here we may see china being able to control it much faster. they said something very similar when there was a wave in january for the lunar new year. shery: what is interesting is just this weekly biden administration also asked opec-plus to revise outlook more quickly. so i guess we are not really going to see that from opec loss given this latest -- opec-plus given this latest report. vandana: yeah. i think opec-plus has generally adopted an overly cautious tone, which has been quite evident this year under very clear saudi leadership. i do not see the balance of power between hawkish saudi arabia and a dovish -- saudi arabia has been very much in control, and it's set a very cautious tone when it comes to tapering. now with worries over how the second half of this year demand pans out, let us all acknowledge

what we know about delta today doesn't necessarily set the course for the rest of the year. we're entering the northern hemisphere winter, which is the flu season. we might see europe go into slightly stricter restrictions. i think opec will be inclined to be very cautious. i might say they even would look and the other direction of what the u.s. would do in putting more oil into the market, maybe even contemplate stepping back a little bit on their tapering plans. i think it is very clear the alliance wants to keep the market tightly balanced. even perhaps a little undersupplied. haidi: is that approach valid when you take a look at the china situation? are we underestimating the expense of the chinese demand? vandana: the china share, you know, you really can't compare

china's covid situation or the policy response with almost any other region in the world. you look at the u.s., which has 100,000 cases on average every day. and yes, there are vaccine and ask mandate -- and mask mandate, but there are not the more stringent measures like lockdowns. in contrast to have china which has less than 100 cases nationwide per day and you have sweeping measures. they advised people to not travel. trains and long-distance buses and planes have been canceled, and so on. there's almost nothing to compare. but also within china, it is localized, the case numbers are low, and we really do not know what the hospitalization and death rates are. if the market is really

struggling here, you can see the case rate numbers are no, the measures are sweeping, but you do not know how bad the impact of this wave in china is. again, as i said earlier, my view is probably they are being overly aggressive. my best cases they will probably be able to control this within perhaps this month. we may see china demand crawling back to normal growth levels in september. haidi: always great to have you with us. staying with china, the country partly shut down the world's third biggest container port. threatening to do more damage to the already fragile supply chain. joining us now for the details is our china economy editor james mager. what do we know about this? james: the port was shut down on

wednesday because one port worker was infected with covid. only some of the port is shut down. the rest is moving slower than normal. last time it took them a month to get up and running after the initial shut down. at the moment looks very similar. there was a partial shut down. the effects are going to be felt not only across manufacturing but the shipping industry out of china. their coming into black friday and the holiday shopping season. this is going to make shipping out of china more expensive and harder to get goods across the pacific and to europe. shery: any idea when we could

see the resumption of operations at the port? james: there is no indication yet. as far as we know the port that was shut is still shut. accog to the press conference, there was about 10 workers who are now in quarantine. but there is no indication of when that will actually resume. as i said, it was a month before the last port resumed for operations. but that outbreak was quite serious, by chinese standards. if this outbreak is much less serious and they get it contained quickly, we could see it restarting faster. but once you shut these things down, ships divert, cargo gets back up, loading docks all get filled. and so if it does restart next week or the week after, there are still delays through the supply chain system. shery: that will really not help shipping cost we are seeing.

james mayger with the latest. coming up, alibaba sets up a hotline for harassment complaints as it investigates an employee's rape allegation. we discussed the struggles of china's #metoo movement next. this is bloomberg. ♪ this is bloomberg. ♪

haidi: the cdc in the u.s. has had booster shots which were expected to be approved should only be for immunocompromised people and not for the general public yet. we spoke to a -- andy: i think what the science is telling us as people who are immunocompromised really have not been properly vaccinated. i do not think we should think about this as a third shot for people with cancer and hiv and other conditions. we need to look at this as we have not sufficiently given them enough immunity, and scientist telling us that needs to be three shots, versus some people it can be two, and we may learn over time and may be more or less. from an equitable standpoint we need to make sure that everybody regardless of the medical

conditions they have can get an appropriate vaccination. >> san francisco requiring full proof of vaccination. this seems like a very stringent mandate. could we see other cities following suit, and should they? andy: i think you are going to see it in places like new york and san francisco and the coast. maybe a few big cities in between. but then we are going to see the polar opposites in the southern u.s. in texas and florida now, it's illegal, apparently, to even ask someone whether they have been vaccinated. it's illegal right now to require someone to take a test before they enter someplace. it's illegal to require someone to wear a mask. so we had very reactionary policies throughout the south, while we have had policies that are probably more consistent with what we are seeing in parts of europe in coastal parts of the u.s. haidi: how much is the

vaccination of children the missing puzzle piece right now? andy: in the u.s. we have a few missing pieces unfortunately. one of them is low vaccination rates, particularly among people who are 18 to 25, particularly in the southern u.s., and in some communities of color here. so those are missing pieces. also i think the people who are under 12 is a missing piece. and to your first point, i don't think anyone in the u.s. should feel safe until we have effectively vaccinated the globe. so, we need to keep all three of those things in mind, or we are not going to be truly where we can say we're getting the better of covid-19. haidi: i read some of your previous comments and you say this is a manageable challenge. certainly optimistic about it being able to be handled.

in australia we are still torn between do we stick with covid zero with elimination, or the reality for all economies, are we going to have to live with a certain level of infections, especially with the infections of the delta? andy: one of the differences in what is going on in the u.s. and in australia and other parts of the world right now, is until everybody is offered a vaccination and offered a vaccine that can keep them safe, people can't get back to normal life. they cannot be expected to get back to normal life. here in the u.s., if you are vaccinated, then you i think have an opportunity to move on with many of the parts of your life. delta is a challenge, and there are still precautions people need to take. but we have many challenges. and at some point in time if you

have been vaccinated, we have to be able to move this from a state of emergency, just to something that is more like a lot of the day-to-day challenges we have. but if you haven't been vaccinated, it is a much greater threat to you and it is not safe yet. i hope more people choose to get vaccinated and hopefully we have more vaccines available around the globe. haidi: that was former u.s. advisor on the back -- vonnie: san francisco has become the first major u.s. city to now require proof of full covid vaccination for indoor patrons of restaurants, bars, and gyms. the mandate also extends to large indoor spaces such as theaters and entertainment venues. near to the imposed a less severe mandate last week that requires indoor diners and gym goers to offer proof of one vaccine dose.

the spread of covid-19 in japan's capital is now impossible to control. that's from a government official who told tokyo's governor that infections are quote, raging at disaster level. officials are considering whether to extend a state of emergency in the city set to expire at the end of the month. several experts say the government sent mixed messages about the seriousness of the pandemic, including allowing the olympics to go on. hong kong's population shrank substantially over the past year. people left the city after the implementation of the national security law that curtailed protests and dissent. more than 89,000 residents left in the 12 months ending in june, according to government data. that is a 1.2% drop. it brings hong kong's current population to about 7.4 million people. 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: alibaba is setting up a hotline and a designated team to investigate sexual harassment complaints. this, as the e-commerce giant conducts an investigation of an alleged rape of an employee by a manager while on a work trip. by the latest we are joined by stephen engle. so how is this case reverberating not only inside alibaba, but across china? stephen: absolutely. many people all across the country are talking on social media about this case. the time when alibaba is also under increased scrutiny by regulators. they're in the spotlight already. the government already taking a moral crusade if you will against the moral hazards in gaming and other areas across the business world, and they are also kind of latching onto this as well. the big question, obviously rape

in any circumstance is a criminal act and deplorable and despicable. but the questions being raised in addition to that is, is there a culture problem within the highflying tech world and china -- in china and other industries in china which have gone unchecked for too long? and are managers complicit in trying to sweep these problems when the allegations surfaced, sweep them aside? that is what alibaba is trying to combat, trying to get ahead of a story that has gotten ahead of it. the ceo has talked about how he is humiliated. so yes, they have set up a hotline for employees to voice their complaints because the person who is the accuser said her complaints were dismissed by her managers, and the person who was accused of conducting this rape obviously was fired, as well as two other managers resigned because they apparently did not take the appropriate action.

including the chief people officer who is now going to be sitting on a new committee of senior female officers, executives at alibaba, to help police the workforce. haidi: of course the heavy drinking culture, is part of doing business in china a lot of the time. is it coming under the spotlight? stephen: it absolutely is. i have been in my -- i have been in the circumstances in my 31 years covering china. you get into an environment where the drinking starts. you come up with excuses not to do it afterwhile, but that is prevalent. and it is part of that cultural issue that has to be addressed by society. we are seeing as well from the anti-monopoly, the anticorruption watchdog is saying china should reduce business drinking and replace it with correct values. and they criticize -- the

anticorruption watchdog criticizing these under the table rules. this is what alibaba -- bring up this quote. the best reflection is action. it is our shared responsibility to create a mutually respected work place environment. so, because of the high profile nature of this case, because it potentially touches all business sectors, and because the government is putting a high priority to these moral hazards, this could be the impetus to see cultural change. haidi: our chief north asia correspondent stephen engle with the latest. we have more ahead. this is bloomberg. ♪

>> it is shaping up to be another busy day in china. >> let's start off with the alibaba news. >> executives saying they would be facing higher taxes going forward. >> tend to comply with all the regulations for all the markets we are in. so this is something we will make sure we keep doing. >> we're learning tiktok owner bytedance might be eyeing a revival of its hong kong ipo plans. >> local media in china, 21st century business news, as well as bloomberg news, saying

bytedance has denied that report, saying it is inaccurate. >> meituan, tencent being sued over use mode. we have seen response from the company. deedee also weighing giving up control. >> investors for the past decade were pulling the wool over their own eyes on the capriciousness of the policy environment in china. >> i think things will be much clearer under the new rule in one or two years. once things get clear we are open to resume an active investment in china. >> chinese authorities are in their long march to see how they are going to regulate this part of the industry. >> the government continues to crack down on large parts of the economy. this time around come online insurance companies. >> china signaling its push to regulate parts of the economy will be deep and sustained over the next five years. >> this will be the most significant of all the regulation resets as we call it that china has done.

we think it is going to reshape the landscape for china equities quite profoundly. haidi: a look back at beijing's widening corporate correct on this week. the final sessions of the week are just over 30 minutes away. let's bring in david with a preview. it's friday the 13th. just wanted to fly that. shery: i didn't even realize that. david: ok. haidi: it explains a lot. david: and hopefully that means something of the opposite of what it usually means. i don't know why you guys need me here, that was really quite a week. we heard from guest, we have heard more from regulators. i think the turning point came yesterday, not as far as market, but in terms of the signaling coming out of beijing, that we will be here for five years, they will be putting in place more regulation. as far as markets go, there's really been a sense of quiet

that has really come back this week, at least for now. we are back to normal on many measures. the shanghai composite, we're pushing into a 50 day moving average. some inflows have returned to hong kong. as far as what to watch, for price action on large caps. to a larger extent compared to weeks back. we have data coming through out of hong kong. gdp numbers. you have eighth a -- have a 30 year option. signs of a slowdown on the chinese mainland. we have these ports we are watching, partially shut just out of shanghai. goes to show how quickly one infection potentially disrupts a massive part of the supply chain. we are tracking all these things, plus of course great expectations as those things keep falling. haidi: david ingles there with a

preview of fried it is 13th in china. shery: given it is friday, i don't know if you care about this but i am a good fan of guns n' roses. i actually went to their concert in tokyo. they are on tour again. it is not just axl rose and slash going onto her, it is also -- going on tour. it's their lawyers fighting against bootleggers and unlicensed souvenirs. haidi: it is really interesting. only from the respect that obviously trademark and copyright is nothing new to the music industry, but this time they are going after street-level vendors rather than big manufacturers and companies breaking copyright and trademark. it's a really interesting story as we get back to live shows, live concerts. that is still not really happening here in australia. but they are looking to bring them back that type of revenue. shery: great weekend listening

to guns and roses. rock 'n' roll all over again. happy friday. our markets coverage continues. we have the start of trade in -- this is bloomberg. ♪ ♪

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>> 9:00 a.m. in beijing and shanghai. welcome to the bloomberg markets china open. david: good morning. we are counting down your final sessions of the week. let's get to your top stories this friday. regulatory crackdown in the delta variant. and earnings season picks up in china. yvonne: a massive port disruption in china