>> some of the uncertainties so our management can focus more on two things. >> good morning and welcome to daybreak australia. i am haidi stroud-watts in sydney. >> we are playing down to the major market opens. quite good evening, i am shery ahn. the top stories this hour. investors watching for clues on the paper timeline as the jackson hole summit goes virtual due to the spike in kobe cases

-- covid cases. scott morrison says a return to zero cases is now unlikely. >>, harris -- kamala harris begins her southeast asian tour. this is the picture across wall street. we are seeing wall street futures muted. this as the s&p 500 gained for the second session. this was the longest week of losses in a decade. we saw the msci finish higher in the friday session but we are talking about the first weekly fall in for the dollar index right now. it is at the highest level since november on the bloomberg doll index. wti at the moment continues to extend losses .4%. this would be the it consecutive loss since 2019.

we have to watch to be to cloudy pricing. this is the very high correlation between stocks and commodities being shown. equity traders need to watch what is happening in the commodity space. the spread between the highest and lowest s&p 500 target by analysts right now is 24%. that is the third widest in nearly a decade. to illustrate that, look at this other chart on the bloomberg. this is the estimate, expectations of either sliding below 1% by year end or surging as high as 2%. this is just underscoring the need for certainty when it comes to the economy. we will be watching whatever fed officials say very closely the theme this year is. chair powell will be speaking on friday. >> absolutely.

we are watching for any signal that does bookend what will be a very busy week for central banks anyway with the bank of korea second in line after we had a clear indication last week at the delta variant could really derail the path of monetary policy. as always, we will be watching the elements in china, not just the regulatory overhauls that continues, the geopolitical issues at play here. without that and to sanctions law. >> not to mention the chinese regulatory crackdown that we continue to watch. market pricing and what will happen to emerging market equities and other assets. surprisingly, we continue to see this bullish bet coming from the likes of goldman sachs. this is over two decades or so. it has been underperforming the

s&p 500 since 2010. now there are expectations that this cheap valuation will lead to some gains on emerging markets. some of the favorites liking taiwan because of the very heavy weighting toward tech. >> we are continuing to watch the impact of the delta variant. for the longest time, australia and new zealand, these locations that have opted for elimination really have to rethink their approaches as we continue to see infections rising in australia and when it comes to new south wales. we had seen 200 new cases over this weekend including the work today that we had so far in this outbreak out of any state. as the outbreak continues to worsen, a record 830 new cases on sunday being reported. we are seeing this political clash over went vaccine rates

would be high enough to justify abandoning these lockdowns. that is something the rba and other policymakers will watch. i want to bring in paul allen who will have more on this. we are just hearing a lot of people say that covid zero is no longer a reality we can get back to. >> that is right. delta has really changed the game. those days of zero cases seem to be long gone. getting this outbreak under control in sydney is a record. tougher restrictors -- restrictions are coming underway. masks are mandatory outside. people are getting very weary of this. police are trying to crackdown. they are issuing fines. there were huge protests in melbourne over the weekend. the silver lining to all of this

is the vaccination rate is increasing extremely quickly. there were 45,000 shots give on sunday. that is about two jabs every second. here is what brett had to say about that. >> i want to think the residents of new south wales. i am advised that new south wales is now amongst the highest if not the highest in the world in terms of it -- in terms of evacuation rates. >> 30% of the population is fully vaccinated. the government is making it very clear that it is not so much zero cases anymore. quite the government possibly into these restrictions, what is

the problem? >> the government is really trying to dangle that 70% caret. -- carrot. it is the states that decide lockdown conditions. they have to keep their borders closed until the case numbers come under control. wealthy areas have reported very good numbers. the rollouts are really lagging in the indigenous communities. you have to balance against the enormous economic hit. particularly business people who are having to shut up their businesses. we have this debate happening where the prime minister scott morrison is being forced to make a hard line against the states that don't want to follow this roadmap. we can inspect the fiery -- a

fiery discussion in the house about this. >> we are coming off the first weekly loss, let's see how we are setting up. >> there was a draw for asian stocks on friday. the next start when it comes to their early session. we have the energy trading halted today. broadly speaking, while we are seeing some concerns around the delta variant as well and the countdown to jackson hole, we will see how this sentiment holds up. that momentum is continuing to intensify over the course of this year. we have production cut plans weighing very heavily on the topics. this is the worst we exist --

week since july of 2020. then we have the backdrop of this here. we also have concerns around afghanistan, we are looking to wait on this outcome. >> we will continue to monitor that. let's get the latest on afghanistan. jake sullivan sent over the weekend that the threat of islamic state terrorism is very real. we heard from joe biden saying that the u.s. is aware that they are trying to split the situation and afghanistan. the airport seems somewhat more under control. what do we know? >> we have heard from president biden. the picture that is being

painted by the administration is the evacuations or the number of people leaving kabul airport have picked up significant the. there is about 8000 in the latest 24 hour period. there are allied countries cooperating with the west on this. they have also been helping out. another action the u.s. took today was to ask u.s. commercial airlines, that means companies like american and delta united to help out with a small number of planes to get some of the evacuees to the u.s. from their countries where they have been brought out of kabul. biden was projecting this idea that things are on a more even keel in terms of the evacuation

while leaving open the possibility that the august 31 deadline for competing the withdrawal could be extended. that is not clear. >> the vice president has to answer some uncomfortable questions from allies in southeast asia. what can we expect from this trip? >> interesting contrast. while president biden is trying to extricate the u.s. from a 20 year war, the vice president's in singapore now and will also be in vietnam to advance the economic agenda and the outreach to asia that has been seen to be lacking. there are questions in the region about how u.s. standing will be impacted and also the very real issue of how you

ensure security with the u.s. pre-much out of afghanistan. -- pretty much out of afghanistan. the pandemic and its effect on supply lines, that is one thing that will be discussed. we know it will be discussed when kamala harris meets the prime minister on monday. the backdrop to that is the chip shortages that have caused quite a bit of havoc in the supply chain. for automakers but also for others. >> we will be watching to get some leaf on that front. let's get to su keenan with the first word headlines. >> we start with singapore which is looking to add more countries to his back united -- it's

vaccinated travel program. after allowing vaccinated visitors from germany. starting next month, the minister of transport says it will work on expanding eligible companies -- countries. >> the intention is to do this well so we can scale up. this is a critical process. make sure that all parties understand what is required and they're able to comply. >> taiwan is administering its first locally developed covid-19 vaccine beginning monday. the president will be among the first to get the vaccine. the company is yet to complete phase three trials for the shot but has been granted emergency use authorization. taiwan has been struggling to secure a sufficient supply of the major international shot.

to malaysia now where the new prime minister has struck a tone of reconciliation in his first public address. he has invited opposition leaders to be part of the pandemic recovery council. this is malaysia's their prime minister in 18 months. his predecessor resigned over the government handling of the pandemic. finally, widespread power outages and floods have been reported across the northeastern u.s.. this after tropical storm henri made landfall in rhode island. while the storm was weaker than expected, it brought winds of 60 miles per hour and heavy rain. train service was disrupted and some new york city tunnels were flooded. local news 24 hours a day on air and a bloomberg quicktake, powered by more than 2700

journalists and analysts in more than 100 20 countries. i am su keenan, this is bloomberg. >> as the delta variant forces australia and new zealand to reanalyze their covid strategies, we will speak to our guest. first, we get a preview of the jackson hole symposium as well as an outlook on the earnings this week. jim will be joining us as well. this is bloomberg. ♪

>> you are watching daybreak australia. it is time for the week ahead. start curing up for jackson hole as fed policymakers get together for the annual symposium. kemal harris will be in singapore. discussions are respected to focus on the global chip

shortage, trade and the pandemic. the tokyo paralympics getting underway on tuesday. spectators are bound from all events there on this week as well. we are looking ahead to the bank of korea being in the hot seat on thursday. it is the other major central bank in the region that is to lead on tightening. >> the tension very much focused on the jackson hole symposium. it will be held virtually this year. the annual gathering of the top central bankers will be closely scrutinized for any clues. jerome powell is inspected to hint at his plans when he speaks on friday. he will have to confront a growing course of voices after the july minutes show that most officials think a pullback in purchases should start this year. three quarters of economists expect a big reveal either at jackson hole or the september

meeting when the committee updates its quarterly forecast. >> the time has come to dial back the settings. >> we are in a situation where we can taper. >> if we see a few more dots -- >> if under clement's at 4.5% at the end of the year and things are progressing the way i am expecting -- >> transition from that extraordinary on terry policy to the more neutral settings that follow. >> the adjustment would be in order. >> i would be supportive of digesting these purchases soon. >> we don't want to jar markets too much but we should support this soon. >> delta is the ace card that jay powell can pull out of his sleeve. >> if i saw the delta variant would be persistent enough. >> whether there is a change in

dynamics after the pandemic. >> i have to take that into account and i will just -- i will adjust my views accordingly. >> we will be hearing from all of those fed presidents. we will also be bringing you jerome powell's speech live on friday. all the guests we will be speaking to -- >> our next guest has said investors have been well guided. june joins us in sydney. what will you be watching given that we have seen a recent commentary signaling to most of the clues that we can expect for this year on how tapering will go question mark >> good morning. it is interesting to see so much

anticipation going into jackson hole. we expect them to continue to discontinue the same narrative well -- where they will talk about the stuff, tapering. all about whether the tapering act will be -- what does delta do? the commodity prices moving, there are so many things, so many variables still to come. i think we certainly expect them to continue to talk about the discussion of tapering but nothing significant that will shift the tapering. >> we really have not seen that 5% in quite a while. i think it is the 200th day

without a pullback. analysts seem to be a little baffled about where the s&p 500 or global stock and treasuries will go this year. what are your targets? >> our target will continue to be positive. the market is really underpinned by the corporate earnings recovery story. the earnings season in the u.s. as well as australia and the other markets have been recently good. this was 30% more than the ones that missed. there have been quite a few variables at this point that need to be monitored closely. things like delta variant, how the countries respond to the resurgence of covid and vaccination rates. all how quickly we can get to a critical level to then move forward. there is a little bit of

uncertainty ahead. we should probably get better clarity. >> 11 straight months of gains. this could be a record if we managed to get this one as well. how worrying do you think the lockdown has been extended into at least the next month? >> the share market seems to have passed the delta effect. it is always in certain -- uncertain of where we can come out of there.

even the equity market seems to be looking past the current issue. companies are impacted by the current lockdown and are a little bit reluctant to talk about guidance. consensus has been coming down somewhat. there are many companies that all create investment. all in all, a good reporting season so far. there is a little risk of where the earnings expectation is due to come up somewhat because of the lockdown and how long it will be. income is very strong. it is a good reporting season so far. >> keeping investors happier. jun, always good to have you.

we have more to come on daybreak australia. this is bloomberg. ♪

>> here is a quick check of the latest business flash headlines. suspending the review of the ipo application of the byd semiconductor unit. that as they investigate this law firm. the advisor to the proposed share sale. it is not immediately clear if the move is linked to the broader crackdown on chinese businesses. the pse has fined 500, the bank of comedic age and, the industrial bank provide a total of $830,000 for inappropriately collecting and inquiring about credit information. the postal same is bank of china is bridging the account management rules.

coming up next, as australia and new zealand rethink their covid zero strategies, what the priorities should be, we will discuss that with our guest. this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today.

weirdo whiteley -- >> you are watching daybreak australia. we start with president biden who says he may extend the august already first deadline. -- 31st deadline. he is extending efforts to evacuate americans who struggled to reach kabul airport. 7800 people were airlifted out of afghanistan.

the exiled central my chief has warned the telemann government is facing a potential economic crisis. they may see renewed weakness after the currency reached a record low last week. with most of the 9 billion in assets frozen, they said the new government could turn to china or pakistan for financing. kamala harris has arrived in singapore in her first trip to southeast asia under the biden administration. she will focus on a roundtable on supply chain resilience. to india now where the company is set to detail of for your

plan on monday as the government looks to bolster finances and rain in a widening budget deficit. they are looking to raise as much as 23 billion in the year. global news, 24 hours a day, on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ i am su keenan, this is bloomberg. >> the delta variant of the coronavirus has forced australia and new zealand to -- scott morris announced it is highly unlikely that australia will ever return to zero cases.

mary, it is always great to have the. where do we go from here? this is not the situation we want to get to. what does living with covid potentially look like? >> i think living with the risk of covid is what we need to be thinking about or reducing the risk. our vaccine rollout is not really high up. when we are looking at a global vaccine achievement, we are looking at it as an age group. we have not had the rollout. we had a compassionate rollout

where the front-line workers were vaccinated first. we now have the third wave, very strong third wave. this third wave is how will be the worst wave. the elderly are more protected. of course 85% of over 60 have had at least one dose. if you have a look at the young. new south wales is where the epicenter is. 68% are young. very young. what we are seeing is those under 39 have very little access to the vaccine. 13% in all of australia under 39 and under have had two doses.

in new south wales, that is about 9%. this new group represents two thirds of all cases. very soon at the end of this month, they will start the vaccine rollout. they should actually be the focus right now if you want to affect the transmission cycle. we need to focus on the young, under 40. >> we need to think about the mobility of that demographic. the prime ministers said once we get to 70 and 80%, they need to start thinking about this and restrictions of the fully vaccinated population. what does this look like to you? is that fully vaccinated? including children?

>> what i would suggest to the powers that be is that if they are going to look at that level of 70 or 80%, they should actually be focusing not on the total population because that is about one into people who are not going to be vaccinated or one in three people. when you look at it across the total of population. 100% of the population are at risk of covid. one way of being able to open up more safely is to actually get 80% of the under 40-year-olds vaccinated. that is 16-39% monthly. the 12-15-year-olds have had approval to receive pfizer.

they should be vaccinated. >> we do have breakthrough infections are people who are fully vaccinated, getting covid-19. what do we know? who is susceptible to breakthrough infections question mark how serious are they once you are infected again? >> the breakthrough infection is very interesting. it is potentially due to the fact that they are utilizing -- visualizing antibodies. because those countries have used compassionate rollouts, the first group that received the exiting -- vaccine was the elderly. their response is not always at the maximum that the young group would have been. if they will be any waving of the immune response to the vaccine, it will be the elderly. that is why places like israel

and others like the u.k. and the u.s. are looking at booster shots for the elderly to try to improve their immune response. it is mostly in that group. vaccines are not perfect. pfizer has a very good level of vaccine efficacy. they all do to prevent severe infection hospitalization. when it comes to symptomatically disease, in other words, preventing the high viral load, it is not as perfect. i think we are seeing the elderly's immune system being lowered and therefore requiring a delta because delta is so infectious. >> coronavirus is around but it

is not as serious because most people have been vaccinated. how long will that take before we get a mutated, stronger and more dangerous virus? >> that will take a very long time. the world has only been -- only vaccinated a third of the entire population. there is a model that looks at that sweet spot where the virus mutates. that is at 60% vaccination of the total population in countries that have good population coverage. you can imagine with four vaccination coverage, they will continue to circulate the virus and they will continue to have mutations. it is the whole of all of us in

wealthier countries that need to get the vaccine into lower and middle income countries so they can try to get it at an endemic level where it becomes less severe and economies can continue and we don't have to have lockdowns. that will be quite some time. >> always a sobering and yet constructive chat. we do have some breaking news when it comes to this pole. -- poll. we are now hearing that z energy has a rigid go forward with the due diligence. that proposal is 3.78 kiwi per share.

this is all a secondary listing. that 20 -- that stock price is a 22% premium. there are a number of different options there. >> let's get back to the news from the pandemic. singapore is seeking to add more countries to his vaccinated travel program. visitors will be allowed to travel quarantine free. >> you can't fly on any one factor. suddenly the incident rates in those countries and then the vaccination rates --

there will be operational assessments as well. when you establish something like vaccinated travel lanes, it is not just about the travel, is about -- it is about the supporting infrastructure. starting with things like predeparture testing, how we can validate vaccination and then on arrival testing. also, the tracing protocols in country and the responsive cases are detected. >> assuming that everything goes as planned, how soon you think other countries are added to that list of quarantine free travel? >> if there is one thing we have learned is that it is highly dynamic. we can't assume the plan is

static in the way it will be executed. we would want to see how we can enhance it. at the same time, we have ongoing dialogue with a range of countries who are also interested to see how they can open up. i think it is going to be an iterative process. doing, learning by doing and then working with a few more partners and iterating again. >> you said -- i am just wondering if you can quantify the kind of recovery you are anticipating for this economy? >> moving forward,

reestablishing the international travel is going to be key. it is key for economic reasons. it is key for people and personal reasons and in general for the restoration of the aviation industry as a whole. for singapore, we have a keen interest in that. for the trajectory going forward, it is not going to be an easy path because the impact of the pandemic is uneven across the world. resulting in different types of border measures and other responses. there will be different connectivity across countries and borders. that is concentrated on how the situation evolves. what we imagine is that over the next 12 to 18 months, there will be some level of recovery. what we are trying to do is find paths to facilitate that, including some of our recent

announcements. we also think that if you take a longer-term view, once say travel can be reestablished and there is confidence, i think it will recover. between now and then, what we need to do is make it easier for travelers to move across borders and also move for airlines and airports to facilitate safe travel by working on protocols that can do that. >> that was the transport mr. of singapore -- minister of singapore. next, why hong kong has taken a different path to managing covid. as we continue to watch how airlines and governments are handling mandating vaccinations, we heard from alan last week as

they were mandating that nations for their labor force. now they are trying to incentivize travelers when it comes to being fully vaccinated. if you are fully vaccinated, you can upload proof of that onto your app. you can also go into the running to -- you can win a full year of international or domestic flights. he said very recently they have not ruled out the idea of some vaccines and passports for the matter travel either. >> if vaccinations are scarce and you want to get vaccinated but you can't and on top of that, you're missing out on the

rewards and points, that would be like adding insult to injury. i hope they keep that up and i hope people can get those rewards and start traveling again. as we continue to track the vaccination campaign. over 4.7 billion doses given across 183 countries so far, check out bloomberg's vaccine tracker and bloomberg.com. plenty more, this is bloomberg. ♪

>> you are watching daybreak australia. we are counting down to the bank of korea decision. morgan stanley expecting a hold. strategists see this happening from october. this is no longer part of the monetary policy board. the be ok has had a pretty big lead time when it comes to guiding for a change. going into october, morgan stanley continuing to see these rates. this is the worst week since january.

we have the 11th month of gains. that would be the longest run on record when it comes to wins for the asx 200. up at a season. companies like bluescope and woodside delivery, a sizable dividend. they are cautioning the outlook for commodities on china and the u.s. when it comes to consumers. we want to check in on the pop for the stock. more than 70%. the biggest gains for the shares in wellington. >> let's take a look at the commodity space.

they gained a little bit of ground. this after losing 40% of its value. copper also hit by fed concerns that they may be curbing back on stimulus pretty soon. those tapering concerns have hurt base metals throughout. corn and soybeans also have been under pressure. there have been concerns that the u.s. could be reducing how much biofuel needs to be lended into fuel. that would be the first step to try to balance competing oil and agricultural interests. we also had weather concerns around agricultural commodities. we will be watching the chipmakers in asia. we have seen those global

shortages of chips pressuring demand for carmakers. take a look at oil and natural gas. oil continues to see a little bit of a rebound. up .2%. we will put those gains into context. natural gas getting a little bit of ground. we continue to watch tropical storm henri. 125 thousand homes and businesses without power. how bad are we expecting the damage from tropical storm henri to be? >> it could be up towards -- upwards of $1 billion. that will be worn by residents out of their own pockets. the damage won't be high enough

to hit the insurance company deductibles. flood image is not covered by commercial insurance -- damage is not covered by commercial insurance. >> brian k sullivan joining us for the latest on henri. we have more on the australian fuel retailer. we will get more of the details. this is bloomberg. ♪

>> new zealand energy has confirmed it has received a bid from -- the proposal followed earlier unsolicited offers. this is -- let's bring out, and a -- mna reporder, har -- reporter, harry. >> the have basically decided to close that. this makes new zealand an all import market. that opens the door to some logic where they would boost

international trading business. this would basically guarantee supply. >> apple has been in the deal spotlight before. what does this mean for them? harry: it has been in the spotlight as you say. some viewers might not even recognize it. it has been pursued by international giants. this is a huge trans atlantic operation out of europe. they are looking for scale and looking to expand in the region. there has been some debate about what they should do as a response. they have invaded the clutches of their own takeover. it is being talked about whether they need to demonstrate growth.

it helps them grow out of their own takeover. >> this is bloomberg. ♪

>> welcome to daybreak asia. >> we are counting down to asia's major market open. >> our top stories this hour, asian stocks set to open higher after a dip, the wall street rally. investors looking for clues on the fed's taper ti.