>> 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 timeline.

kamala harris begins her southeast asia tour as the biden administration struggles to manage the crisis in afghanistan. singapore seeks to -- traders watching the symposium, the annual event being held virtually. usually, policymakers using this event to set up new initiatives. we have seen chair powell talking about that new policy framework. we are watching his speech now on friday. haidi: in the meantime, markets continue to search for direction as the impetus to the upside seems to be fading somewhat. the answer will almost always be higher, but that is not the case at the moment. 12 out of the 21 forecasters tracked by bloomberg expect the s&p 500 to fall into the holidays. the spread between the highest and the was target is the third

widest in nearly a decade. look at treasury analysts and uncertainty is almost as acute over there. shery: not surprising, given the strong labor market, but the risks overgrowth slowing down. it is surprising to see that despite the risks, we have bullish bets on the margin markets from the likes of goldman sachs, bank of america. this chart showing the underperformance of em so far, a 20 year blow against developed nations, against the s&p 500 married -- s&p 500. templeton liking south korea and taiwan. haidi: a lot of that divergence in expectations and performance is down to how countries manage covid, manage delta. are they sticking to covid zero? are they learning to live with the virus? we take a look at this in an interview coming up, taking a

look at hong kong. why they are sticking to a covid zero strategy. we speak to the hong kong commerce and economic develop secretary, he joins us to talk about the implications for the economy. let's take a look at how we are setting up the markets in asia. what are you watching? sophie: after we saw the worst we saw the worst week since february, we have a muted move early in the session. kiwi stocks gaining ground with z energy jumping the most on the back of the ampol deal been confirmed. you have brent prices study after the longest run of weekly losses since 2018. the oil rally has wavered. energy stocks attract that downturn last week, -- last week. -- tracked that downturn last

week. there was a slump in chinese tech shares that way the most on the region. alibaba and tencent shares losing $850 billion in market cap since the february peak. we had bear market territory last week. bloomberg intelligence these -- expects these clients will continue. as we count down to jacksonville, watching to see if delta anxiety has pete and bond markets. morgan stanley short the 10 year with a benchmark deal. we have michael burry also bearish on treasuries. level bonds continued to advance and we see u.s. yield in negative territory. shery: let's turn to some other first would headlines with su keenan. su: we start with singapore, which is looking to add more countries to its vaccinated traveling program and has signaled that it is committed to reopening.

after allowing vaccinated visitors from germany from next month, the minister of transport says it will work on extending eligible countries. >> the intention is to do this well so that we can scale up. this is a critical process, to make sure all parties understand what is required, including the travelers, and they are able to meet the requirements. su: to taiwan, which is administering its first locally developed covid-19 vaccine starting monday. the president will be among the first to get the shot, developed by a tai-based medicine company. the shot has been granted emergency use authorization. taiwan has been struggling to secure sufficient supply of the major international shots. president biden says he may extend the august 31 deadline

for a full withdrawal from afghanistan. he has promising expanded efforts to help evacuate americans who have struggled to reach kabul airport. joe biden says 7800 people were airlifted out over the total to more than 25,000. his remarks come two days before a virtual meeting with g7 leaders. afghanistan's exiled central bank chief has warned that the new taliban led government is facing a potential economic crisis. he told bloomberg that the afghan country may see renewed weakness after the currency reached a record low last week and with most of its 9 billion in assets frozen by the u.s., he says the new government could turn to other countries for financing. >> the equity have to find additional revenue sources, whatever that may be. they will probably go to other countries, maybe china, pakistan

, or other regional countries to find sources of finance. su: 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 su keenan. this is bloomberg. haidi: kamala harris has touched down in singapore to begin her first trip to southeast asia as part of the biden administration. she is scheduled to meet with the prime minister on monday. our senior editor joins us now. what are the priorities as the vp touches down in asia? >> there are a couple of priorities. supply chain was one of them. beijing was one of them. every time the u.s. is talking about asia, it is talking about the china contract that it looks to make. the whole trip has been overshadowed by afghanistan. that news coming on i think has really made this a more

important trip than it would have been otherwise. this was supposed to be a trip for the vice president to two friendly countries in asia, in singapore and vietnam. now the question is going to be, after afghanistan, after that exit, what does that mean for the u.s. perception of power abroad, particularly in a place like southeast asia where that is such an important thing, as the u.s. wants to show that it is pivoting to asia, that it is in asia for the long-term? i think the way the vice president puts forward her agenda, the way that she gets received, this is a time when i would be watching some of the really small details as you go about this trip. shery: what can we expect on the global semiconductor shortage? derek: that is a problem with a

lot of difficulty and little obvious way to get solved immediately. i will give you an example. there is a u.s. firm that has said it is going to invest $4 billion in a singapore chipmaker. this is all public. that is not necessarily expected to start up until 2023. in terms of the immediate deliverables that kamala harris could get out of that, it is hard to see what that looks like aside from broad commitments. i'm not sure what she is going to get, but it is hard to see something where you sit there and flip on a light switch and say, problem solved. a lot of this in terms of chip shortage will be about the groundwork for future situations to make sure that this isn't a problem going forward and it is a one-off supply crunch. you could be talking about

research, you could be talking about cooperation, you could be talking about statements of intent, because the u.s. is trying to say that, for itself and for countries that it considers strategic partners, friendly nations, that it can sort of figure out a global supply chain so that it does not have to rely on china. shery: derek wallbank with a preview of kamala harris' visit in southeast asia, we will have more analysis from a leading research center in the next hour. plus, a former u.s. ambassador to singapore joins us later. still ahead, expectations for the jacksonville gathering, we will discuss with chief global strategists. plus, the odds it will lead to policy tightening in asia this week. we will have more. this is bloomberg. ♪

>> the time has come to dial back the settings. >> we are in a situation where we can taper. >> if we see more jobs report like the one we just got. >> if on employment is 1.5% at the end of the year and things are progressing the way i am expecting. >> transition from that monetary policy accommodation to more neutral settings must follow. >> some adjustment would be in order. >> i would be supportive of adjusting these purchases soon. >> we don't want to jar markets but i think it is time to end these emergency measures. >> delta is the ace card that jay powell can pull out of his sleeve if he wants to stop this committee. >> if i saw that the delta variant was going to be persistent enough. >> whether there is a change in

dynamics again in the aftermath of the pandemic. >> i have to take that into account and adjust my views accordingly. >> a chorus of hawkish fed voices. rising covid cases driving the fed to jettison its plan for an in person meeting this week. could this be jay powell announcing the taper plan on friday? kathleen hays is here with a preview. what happened and one is expected now? >> what happened is in the jackson hole area, covid cases are rising, they are back to where they were in their levels in january. the kansas city fed, you heard her speaking and that when we get of comments from fed officials, said in her statement that we are concerned about maintaining the health of the hobart immunity -- of the covid community. that is why they change their mind.

this is just the evening before the board of governors announced jay powell would be giving a virtual speech. he is going to give a speech virtually, what does this mean? one of the interesting things afterwards, i am seeing so many pieces written, people saying, doesn't this kind of your what might be going on for the fed? the kansas city fed has to say, we have to do virtual because this resurgent virus cases are holding us back. will this have the same impact on the fed's policy decision and whatever jay powell can or cannot say? that last comment, you know, if they are persistent, he also said, hitting consumer demand could slow the economy. that is when he could slow down his view of tapering, but he did not say eliminate it. i think that is what we are going to hear from jay powell. haidi: what are we expecting from his speech then? kathleen: what we are expecting is they are going to give a

signal, jay powell is going to give some kind of signal that tapering will start and when. it seems like the door is open to starting this year, ending in the second half of next year, what more about -- what you have to see, mr. powell? could the delta variant slow you down indefinitely? three quarters of economists surveyed said they expect a signal here at the jackson hole meeting or the sum temer 21 -- for the september 21 meeting. there is a question about how these cases could affect that. it is interesting that this topic, in an uneven economy, which seems to mirror the reality of what the fed is facing now. uneven recovery, how do you set up your own symposium? one with thing i would like to add, remember when we heard from a war, when he talked about central banks leading permanent

flexibility, whether you have covid or don't have covid, but how do you manage your way through it? we have to live with a virus. we had guests telling us. it is important for the fed to say, how does the economy look? that is going to determine what we do. shery: great to hear that insight. let's turn to our next guest who says the focus on this taper timing is misplaced. investors should watch the fiscal policy past. joining us is customer smart -- is christopher smart. always great having you with us. we continue to have these talks in congress about the infrastructure package. are these the issues investors should watch when trying to determine where the markets are going? christopher: obviously, the fed, the news this coming week, the mood from jackson hole will be

important. but i think in your opening piece, you got a sense of that mood music, which is tapering is coming and we are not going to be seeing $120 billion of monthly asset purchases through most of next year. again, the big question -- the bigger question is, what sustainable growth rates are possible and likely once we return to a more normal level of activity? that will depend more on the infrastructure bill, the $1.2 trillion that has been agreed on on a bipartisan basis, and then the bill that will come through reconciliation, probably not 3.5 trillion dollars, but less than that, but where that money is going to be invested, what that does to support the economy over the next few years. shery: let's go to our question of the day because this goes to the key of the matter, how will jackson hole matter for assets?

you mentioned the focus on fiscal policy but what about jackson hole? this week on friday, what will happen to assets? christopher: i cannot give you a precise forecast for this coming friday. i think we will generally get more signals from the fed that tapering is on the agenda, it has been discussed in the minutes. but this is a fed, and jay powell is a chair, who proceeds deliberately, very carefully, and advertises his next move well in advance. my bet would be we are not going to get a taper announcement this time, but we will get talk about tapering in the next meeting or the meeting after. and to your question about what that means for assets, i think the economy continues to be strong. the delta variant is a cloud, but the overall trajectory of the economy, the recovery, even though there might be headwinds

in hospitality and business travel, vaccinations remain effective against illness and we think the trajectory of reopening economy remains the central theme of the next several months and into next year. haidi: how much of a shadow is continuing to be cast by the chinese regulatory crackdown over asian assets? christopher: it is a big shadow that continues to be cast over chinese tech companies. i'm not sure why that should necessarily expand out other than for sentiment reasons to other parts of the asian markets or asian economies. clearly, the tech sector has been unregulated in china over the past 10 or 20 years when you compare it to energy or finance or telecoms. some of the measures being announced are natural in the sense of payments activities

dominated by a couple companies, ride-hailing apps that may need more oversight. but this is all part of a broader effort by the chinese government, it would seem, to take control of what they believe is a central driver of chinese growth over the next five or 10 years. xi jinping has made no secret of that. that it is probably natural that more rules will come into place and investors probably should have been waiting for this to happen, even if it was unexpected that it was so sudden and focus. more rules were going to be coming to this part of the chinese economy in any case. >> always great to have you with us. next, president biden says the u.s. has expanded evacuation efforts at kabul airport. and the latest on afghanistan. this is bloomberg. ♪

>> let me be clear. the evacuation of thousands of people from kabul is going to be hard and painful, no matter when it started, when we began. it would have been true if we started a month ago or a month from now. there is no way to evacuate this many people without pain and loss and heartbreaking images that you see. it is just a fact. haidi: president biden discussing the evacuation efforts in afghanistan. joining us now is a bloomberg editor. after the chaotic scenes that we saw over the past few days, is evacuation strategy starting to get clearer? >> that is what you are hearing from the administration and the clip you played of president biden shows that he is, i would

say, pretty much unapologetic about the evacuation and the overall plan. he made that clear again today, saying that history will prove him right and it is a time to end america's involvement after 20 years. the numbers have picked up and the latest 24 hour period that we heard from the administration , or 24 hour total, was almost 8000 people brought out of kabul. if you keep that pace up and joe biden said that he does not see why not, then you can say that over the next 10 days, you will still get substantial numbers of people out of afghanistan. shery: vice president harris could be facing some awkward questions from allies when it comes to afghanistan in her trip

to southeast asia. what can we expect during the visit? tony: harris is going there, it is a contrast. joe biden is trying to -- the administration is trying to extricate the u.s. from afghanistan, and meanwhile, harris is on what will be the first trip by a sitting u.s. vice president to vietnam as well, to sort of reach out to asia. you can expect that there will be some concern from america's asian partners about the ramifications of the u.s. withdrawing from this asian hotspot, if you like, which is afghanistan, at the same time they have real economic issues to discuss like the supply chain. shery: tony there with the latest on afghanistan and vice

president harris' visit to southeast asia. a report campaign for fully vaccinated frequent flyers aged 18 and above, options include flying points and flight discounts. flyers will also be able to enter into a draw to win a year's worth of flights. a deal to acquire spark infrastructure, sources tell us the company agreed to a takeover deal at 295 as trillion dollars a share which would value spark at $3.7 billion, a deal could be announced this week. ampol has offered 3.78 kiwi dollars a share for a new zealand counterpart, z energy, z energy confirmed the nonbinding proposal is a 22% premium on the company's share price before the deal was pitched.

a secondary ampol listing on the new zealand stock exchange. just ahead, singapore's plan to expand quarantine fee travel for vaccinated visitors. -- quarantine free travel for vaccinated visitors. this is bloomberg. ♪

>> this is "bloomberg daybreak asia." u.s. vice president kamala harris has arrived in singapore on her first trip to southeast asia under the biden administration. she is scheduled to meet the prime minister and hold a joint news conference with him later on monday. she will also participate in a roundtable focus on supply chain resilience as well as the pandemic and digital economy. harris heads to vietnam on tuesday.

malaysia's new prime minister has struck a tone of reconciliation in his first public address. he has invited opposition leader to be part of the pandemic recovery council and called for cross party cooperation. he has malaysia started prime minister in 18 months. his predecessor resigned as anger grew over the government's handling over the pandemic. to india, the country sent to detail a four year plan monday, raising money for state infrastructure assets as like government looks to both her finances and rein in widening budget deficit. india is aiming to raise as much as $23 billion through much 2022, the proposals include an ipo buy life insurance corporation of india and the sale of stakes in petroleum and air india. widespread power outages and floods reported across the

northeastern part of the u.s. after tropical storm henry made landfall in rhode island -- tropical storm henri made landfall in rhode island. about 1000 flights have been canceled, train services were disrupted, and some new york city tunnels were flooded. 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 su keenan. this is bloomberg. >> singapore is seeking to add more countries to its vaccinated traveling program as it looks to ramp up its reopening posts. visitors from germany will be allowed to travel quarantine free from next month. the transport minister was speaking to bloomberg. >> you cannot rely on any one factor. it is a composite assessment. the assessment comprising, for example, to give you a few

considerations, the incidence rates in those countries, then the vaccination rates, and then there will be operational assessments as well. when u.s. tablets or something like a vaccinated travel lane, it is not just about the travel, it is about the supporting infrastructure and protocols that go with that, starting with things like predeparture testing , how we can verify or validate vaccination, and then on arrival testing and the tracing protocols in country and our response if issues are detected. though -- so there is a multiplet to the of factors. >> talking about scaling up and assuming everything goes to plan, how soon before other countries are added to that list of quarantine free travel? assuming everything goes well. min. iswaran: if there is one thing we have learned from our

experience with covid, it is a highly dynamic. we cannot assume that a plan can be static in the way that it is conceived and executed. from that point of view, i would say that our expectation is we want to implement this. we said it would start, effective travels, from the eighth of september. we want a period of time to assess efficacy and efficiency and how we can enhance it. at the same time, we have 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, if you like. doing, learning by doing, then working with a few more partners and iterating again. haslinda: you have said that the reopening of borders is to prevent lasting damage. can you quantify that kind of

recovery you are anticipating for the economy with this reopening? min. iswaran: moving forward, reestablishing the passenger flows, 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 an interest in that. in terms of 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. so the ability to establish connectivity across countries, across borders is contingent on how the situation evolves. what we imagine is over the next 12 to 18 months, there will be some level of recovery and what

we are trying to do is find pads to facilitate that -- paths to facilitate that, including some of our recent announcements. at the same time, we think that if you take a long-term view, once safe travel can be reestablished and there is confidence, than i think it will recover. between now and then, what we need to do is find ways to make it easier for travelers to move across borders and also for airlines, airports, and all the other stakeholders to facilitate safe travel by working on protocols that can do that. haidi: that was singapore's transport minister. coming up, we will be hearing why hong kong is taking a different path to managing covid. hong kong's economic developer to secretary will be joining us exclusively.

in australia, the outbreak continues to worsen. a daily record 830 new cases on sunday. that has the pie minister saying it is unlikely that the country will ever return to zero infections. let's bring in our government reporter. over the weekend, 1600 cases for south wales alone. the situation continues to deteriorate. >> that is right. in the southeast, where the major sydney's -- major cities are, it is not looking good, especially compared to earlier this year when australia was covid free, the envy of much of the world. authorities now lost control of sydney's outbreak, infecting people and regional towns and cities. a single case of delta was detected in june, originating from a limousine driver who contracted the virus from an

international flight crew. some health authorities are now saying days of australia's covid zero strategy are over, they will now be in lockdown for two months. the people are weary of it. authorities implement tough first at home restrictions in some areas, including curfews. melbourne is in its sixth lockdown. sydney's outbreak has spread to new zealand, which is another covid zero advocat. shery: if australia had to abandon it strategy, what will replace it? jason: that is a work in progress at this stage. there is no doubt that the covid zero strategy seems to be cracking. the spread of the delta variant has challenged those strategies.

as was mentioned, scott morrison is indicating that it is growing untenable. he said australia's focus needs to shift to managing hospitalization rates rather than growing case numbers. when of the problems is from states such as western australia that remain covid free, at least for the time being, saying they want to maintain that status. that is facing strain on australia's plans to open back up. internally enter the rest of the world, until vaccination rates reach higher thresholds. >> coming up, the outlook for the busy week ahead with a central banker. this is bloomberg. ♪

>> less than half an hour away from the opening of trading in japan and south korea. >> we are seeing price action early this monday section. singapore pointing to a slight upside while the yen is holding steady though there could be downward pressure going into the

jackson hole symposium. s&p e-minis lightly higher this morning. pulling up the chart, after the selloff in chinese stocks, china and next global peers by the most since 2006. this could be the time to buy. kathy woods saying evaluations are looking like they are going to stay down for a long time. you have sean taylor saying if earnings keep getting downgraded, that means it is still expensive to buy. jp morgan, they are saying this should not cause an existential crisis, that investors need to look at the bigger picture, looking at these concerns of uncertainty as part of a bigger puzzle. they are saying it should not cause an existential crisis with this correction, looking to be business as usual. we are looking at some very different views. haidi: a lot of attention on

bank of korea on thursday, view as one of two men show -- two major central banks in asia to lead to policy tightening. our next guest, louis kuijs. we spoke to a governor that the end of last week and he said, other central bank's not looking at what little rbn is doing but the truth is they probably are because it throws into question how much of the delta variant going to derail you otherwise have indicators of your mandate that would suggest tightening should begin? register bank of korea fallen this argument? louis: the delta variant is upsetting many people's plans and central bankers' plans. in principle, the bank of korea is willing to move before the fed and they have different considerations. they care about debt that they want to contain.

we do think the delta variant and that government's restrictions will mean that the bank of korea will stay pattern this month and will probably start to raise their rate in october. looking at that situation. shery: that takes us to jackson hole. how much of a reaction do you expect to see and what you expect to hear from jay powell? louis: we think powell will try to signal their willingness to look through that inflation data. the markets were worried. we have not seen bond markets come down. a huge amount of attention to how the fed is responding to this higher inflation in the u.s., whether they think that this inflation is temporary or permanent and what it means for

their plans. we think they will stick to their plan and to start to raise rates only an early 2023. in terms of tapering, it is a different story. there are signals that have told us that they are starting to prepare the market for the beginning of the tapering, which should not be a big thing. they are only talking about reducing the amount of money that is still being pumped into the economy. shery: they are saying hiking rates and outright tightening would not happen, that is a different story from tapering, which means less stimulus. if we are looking at a central banks in general and we have seen the rbn will study and they did not raise from that quarter percentage point last week, we are expecting that be ok to move later from half a percent. how much of a difference in economic impact to a quarter percent rate hike make in these

asian economies? louis: that is a good question. people do all kinds of estimations and there will be -- i think, as often, with monetary policy, this is about are we moving towards a trend increase or not? this is about inflection point, when things start to matter. that 25 basis points by itself will not kill the economy but we are looking at central banks starting to signal, are we switching course? and what does that mean? as you mentioned, bank of korea is going to be interesting. the korean economy is a little bit -- it has two sides. manufacturing side, benefiting from a global economy. domestically, everything being disappointing. that will hold them back. shery: even the manufacturing side seems to be suffering from

the lack of semiconductors globally, perhaps helping those semiconductor makers in raising their prices, but not necessarily automakers like hyundai and kia. how do you factor that in? louis: we still think that overall, looking at demand, there's going to be a solid recovery in the global economy. but there are sectors, especially auto sectors, where the supply-side problems are constraining the amount of production taking place. it is also chips. there are specific industries that are being held back by these shortages, even though i don't think that that is enough to really start to bring down the overall recovery. the overall recovery is more dependent on things like if the delta variant is going to lead to new restrictions. >> free to have to our thoughts

-- great to have your thoughts. be sure to tune into bloomberg radio to hear more from the day's newsmakers and getting that analysis from the daybreak team, broadcasting from our studio in hong kong. this in bdo the app or on -- listen via the app or bloomberg radio.com. ♪

haidi: a quick check of the latest headlines. the stock exchange has extended its review of the application of byd semiconductor units as regulators investigate a beijing based law firm. it is not clear if the move is linked to china's broader crackdown. the bboc has fined five lenders for a series of violations. they were fined for inappropriately collecting and providing and inquiring about credit information. china construction bank had similar fines for preaching account management roles. and yes finance minister he has summoned the chief executive officer, asking him to explain why pledges in the nation's electronic tax filing portal

have not been fixed. they have not been resolved since its launch. shery: taking a look at the rest of the day, in japan and south korea, as we count down to the start of trade, in korea, we look at early august trade data. in the next hour, exports surged in that first 10 days of this month more than 46%. the u.s. special representative for north korea is in the country to discuss issues including nuclear ambitions. he will meet with his south korean counterpart 10:00 a.m. local time. south korea will be auctioning up 1.3 trillion yuan in five-year bonds. tokyo is considering converting some olympic facilities into field hospitals to treat the covid infections. meanwhile, mizuho has been criticized by the government for its fifth system outages.

iran urging japan to release millions in funds frozen by u.s. sanctions, the president now telling a state news agency it is unjustified that the islamic republic cannot access payments for energy exports. haidi: a look ahead to the bank of korea, will they hold as a result of delta? we are getting the first 20 days when it comes to the trade numbers out of south korea. first 20 days exports rising almost 51% year on year, robust number. first 20 days of exports rising 52.1% year on year as well as chip exports, almost 40% year on year. the daily average exports rising 31.5% year on year. we see this is a good indicator as to the strength of exports and imports demand across asia.

exports to the u.s., we are getting those numbers out, rising 50% and exports to china continuing to stay strong, rising 37.3% in the first 20 days. let's look at japan, the prime minister has been dealt another blow with an ally of his losing the mayoral race in oklahoma. -- in nokohama. the candidate defeated in his own backyard. >> there are two main reasons. covid-19 and casinos. polls show the public is increasingly dissatisfied with the handling of the pandemic. we have seen record numbers of infections on a daily basis over the past few weeks, even though testing levels are low. the other reason is that ruling little democratic party' a stream of opening japan's first gambling result. yokohama has been selected for a

potential venue. the idea was unpopular with local residents. the winner in this election, is a former university professor, has pledged to stop the casino project immediately. shery: what does this mean for suga's prospects for the general election in the next three months? isabel: it does not look good for him at all. he has already had a few special election defeats this year. he faces that ruling party she -- ruling party leadership election probably a month from now. earlier, he looked unassailable, but now that support has fallen to 25% in one poll, which is a really bad level in japan, there really many in the party keen to replace him ahead of the general

election and even if he does manage to hold on, the party may lose seats in the lower house in the general election, potentially making it harder to pass legislation and reducing his control over the party. shery: our politics reporter in tokyo. we are five minutes away from the start of trading. let's turn to sophie. sophie: as isabel did note, the newly elected mayor of yokohama is against plans to institute a resort -- casino resort in the city. keeping an eye on japanese casino related names, the likes of universal entertainment. switching over the board, and south korea, keeping an eye on sk group stocks, set to absorb sk materials via it shares swaps. we are keeping an eye on crypto related names with bitcoin trending toward $50,000, the

virtual currency trading around may highs after breaking through technical barriers. the next big barrier does bloom. in japan, 31 companies are registered to trade crypto's, you have coinbase japan, keeping a close eye on these stocks this monday morning. haidi: coming up, we have an exquisite interview with hong kong's comers and economic developing secretary to talk about covid restrictions and outlook for reopening. plus, discussing vice president harris' visit to asia and what it means for cooperation in the region. the market opens coming up this monday morning. this is bloomberg. ♪

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shery: welcome to daybreak: asia. haidi: taking a look at the major markets opening across asia. asian stocks are set to open higher as they look ahead to the meetings on the clue on the paper timeline. we speak exclusively this hour about the economic fallout from

the covid zero strategy. she begins her southeast asian tour as the biden administration struggles to manage the crisis in afghanistan. shery: japan and australia coming online. sophie, what are you seeing right now? sophie: we are seeing jj bees open up low. -- jjb's. counting down to jackson hole, some down currents for the japanese currency. local media reporting that the prime minister may call a snap election in early october as the covid cases hit a record. in opposition back candidate won the yokohama mayoral vote. we got the latest trade figures from south korea from the flash numbers for the month so far. we have an early export saying that the demand will continue to hold up.

we have covid cases weighing in on the outlook for korea at which has immediate reporting that they may seek to boost the 2022 budget by more than 8%. korean stocks are gaining ground. tech index up in the gates. the current currency is treating from the 1179 haiti handle it was flirting with last week. later, we will watch what is going on with the energy shares. and australia, several stocks are trading for a minimum. mining companies have beat estimates which is helping to keep it on course for the 11th straight month of gains -- months of gains. so far, this session, we are seeing it up by 2/10 of a percent while oil is steadying

at $65 a barrel after notching the longest run of weekly losses since 2018. slightly firmer after breaking 650 last week. this will likely continue in the face of regulatory pressures. that you not see in existential crisis. it is business as usual for chinese stocks. a quick check on u.s. cash yields. we are seeing the 10 year back above 126. we have several calls when it comes to the bond market. whether or not it is a priced in thing, morgan stanley bearish on bonds. haidi: she mentioned we are watching it fall over 3% this afternoon. they expanded the recall, at potentially a cost of a billion dollars. big question on who will pick up the bill. they recalled hope -- both ev's

at the risk that their batteries could catch on fire. they will replace modules in more than 73,000 additional vehicles. we are seeing that potential recall. let's take a look at broader markets. we got expectations for earning growth. all of this is igniting bullish bets when it comes to em equities. it's been a decade of underperformance or so. we are -- why now this bullish view? why the uncertainty when it comes to these greenback subsidies? >> i think it is a call from wall street that has a lot to do with the fact that u.s. equities have had an extraordinary run relative to the rest of the world, particularly to the em sector. it is reasonable you would have

analysts look at this and say on the relative basis, emerging markets look so cheap in comparison to u.s. equities. on that alone, i think it is time for people to do some switching. in such uncertain times we are having, especially with the way that the delta variant is affecting people's outlook and stopping them from going back to work, especially in the u.s. and parts of europe. the condition might not be the same as we have seen in previous situations. just because evaluations are relatively low, they can stay that way for quite a long time. it doesn't mean to say that people will push into emerging markets, especially when you look at china as well. that is a huge part of the sentiment towards what happens with the emerging markets and at the moment, china is an unclear situation where there are various crackdowns. yes, on an absolute basis, the stocks look relatively cheap.

the big reason for shifting into them could not be apparent for a while yet. shery: this takes me to our question of the day. how will jackson hole matter for assets? more specifically, i want asked about asian assets. reporter: whatever he has to say on a global basis. it becomes increasingly difficult for him to surprise anyone. there been so many fed speakers. he is also spoken himself so for him to come up with anything new, for example, on the timeline of a taper, it seems relatively well established now that towards the end of this year or early next year, people are expecting people to reduce asset purchases. that i been the voice him so many tech people. for him to come out now and say something completely different

is unrealistic. to be of more significance is that janet yellen is apparently endorsing him to continue, there are large uncertainties on the financial markets. that may be more important than what he says this week. the fact that it appears to be a good sign of continuity as the chairman, that is the biggest take away the financial markets will get this week. shery: our strategist there. we discussed expectations for jackson hole in more detail. kathleen is here -- kathleen is here. what are we expecting? anchor: the focus still on jay powell and his speech on friday. it's interesting to see what happened. last year was the first year ever wear this conference had to be virtual because the pandemic was so strong on the u.s.. things were getting better and then boom, you can have it there in person that scenery. the covid cases kept rising.

the president of kansas city said they are shifting an elevated risk to the citizens of the county. they want to not be a problem there. what has happened now is if they were first ago -- forced to go virtual because of the delta variant, this can affect what could happen in jackson hole. robert kaplan said on friday that yes, he would consider very seriously the delta variant, how it could affect consumer demand. that could cause him to slow down what he sees a timetable for tapering. he was on the first to push for. i think that will be more of the scene. how much it affects that haired -- that. he made it clear all along. he doesn't want to surprise anybody on tapering. he wanted to be well tapered --

well done so there is no taper tantrum. haidi: what a reit setting up for in terms of the content of that speech? -- are we. reporter: they are on board with starting the taper this year. we need to see a couple strong job reports. we know in terms of the kinds of things they'll be talking about. inflation is not temporary, by don't think that is the main driver right now. what is the need to reduce stimulus? is the economy strong enough? a lot of people said yes. will covid be something that slows that down? how quickly you can do it or put on the brakes and go slower. remember, there is a tradition of fed shares when they want to, using the speech at jackson hole to send a clear message on policy back in 2012.

they signaled that qe3 would start. that is what people thought, gee, it could be another meeting like that. i also want to go on his point about janet yellen throwing her weight behind jay powell when so many progressives in congress are maybe saying they are not interested in this reappointment. joe biden is on board with janet yellen may get his next four years at the fed. haidi: what get the first word headlines. anchor: we start with president biden who may extend the full withdrawal from afghanistan. he promises extended efforts to evacuate americans have struggled to reach kabul airport. 7800 people were airlifted out of the weekend, bringing the total to more than 25 thousand. his remarks come two days before a virtual meeting with g7 leaders. su: the exiled central bank

chief warns that the new tele-been led government is facing a potential economic crisis. he told bloomberg news that the afghani may see renewed weakness after the currency reached a record low last week. but most of its 9 billion in assets frozen by the u.s. and imf, the new government could turn to other countries for financing. >> still have to find additional revenue resources, wherever that may be. they may try to go up to other countries to replace the u.s. and maybe china, pakistan, or other regional countries to find some source of finance. su: you can hear more from that interview with the acting afghan central bank governor on this podcast. you can listen on apple podcast. australia and new zealand are checking their strategies for

eliminating covid-19 as the delta variant 10 uses bread in both countries. after a weekend of record infections, australian prime minister says it is unlikely they will return to zero cases. it is now relying on a 70% vaccination rate to ease lockdowns while new zealand has reported 72 active cases. taiwan is administering its first locally developed vaccine on monday. their president is among the first to get the shot developed by taipei based med engine. they are yet to complete phase three trials for the shot but has been granted in emergency use authorization. taiwan has been struggling to secure sufficient supply of the major shots. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: our exclusive interview

with hong kong's commerce and economic develop -- develop an sector on the covid restrictions and outlook for reopening. ♪ plus, we will look at the visit to southeast asia and what it means for cooperations in the region with senior fellow william chung. this is bloomberg. ♪

shery: we have an alert. we are getting the reaction from the prime minister in japan saying he humbly accept the judgment of voters in the yokohama mayoral election. his favorite candidate lost election for yokohama mayor in the city where he began his political career. he says it is a matter to run

for party leader when the time comes. there are questions about what will happen to be party election as well as the general election. sue got -- suga says the topic already is stopping the spread of the virus. let us turn to hong kong because the decision to reverse its seven-day quarantine has triggered an outcry from the business community. that decision came as the regional rival, singapore, release plans to ease travel restrictions next month. reporter: our guest is the hong kong secretary of commerce and economic development. thank you so much for doing this face-to-face we get behind issues and talk about it. there is probable frustration in hong kong where singapore and other jurisdictions are coming to grips that covid zero is futile.

they are finding ways to open up. hong kong is sticking to covid zero. they're lengthening the quarantine process. how do you justify that as the secretary of comments and development in an international business hub you're shut off from the world? edward: we are not totally shut off but we are playing it safe. we must get the -- keep covid at bay before we can talk about opening the border and economy. i think by now, after the pandemic hits the whole world, there is an observation in hong kong, singapore, london and new york. every single city and country would have to ramp up our efforts to fight it. even with vaccinations coming in, there is still a tough job for our community to tackle it. i think there is no quick fix

and no one-size-fits-all. reporter: one could argue that the containment effort, including the reduction of seven days quarantine if you have proof of antibody for the vaccine is that it is working and that triggered a whiplash response from 21 days to 15 and back to high-risk was a knee-jerk reaction to in anomaly. somebody who came in potentially got it in the quarantine hotel. wasn't he relaxed quarantine working? -- the. edward: we got identify the high-risk and endorse stringent requirements. people incoming or return to hong kong, sorry, that handful of countries have to have the

highest quarantine of 21 days there is reasonable flexibility. the majority of countries we put in their medium risk which is more than 100 countries where there will be 21 days quarantine. should there be estimations? we can reduce it to 14 days. the last one, what you hope to see more. it is the low-risk ones where people who are fully vaccinated can come with seven days quarantine requirement. reporter: the frustration is multifold. nicole can't -- nicole kidman canceled and i know you have been defending that decision which was the chief secretary donnelly who makes those decisions but you defended that. are there benchmarks that you want to share with the public on how these decisions are made? it is multi-full because the international people who can come in and opening the border

which seems to be the primary goal the government. edward: every day, and member of the candidate who speaks on their preferably a dust portfolio. i am pushing for more easing of restrictions. my portfolio requires me to push for those who are in my constituency. whoever is involved in the economic development. i've been a cabinet member who will make the collective decision and taking all factors into it. it acts like a scale. must a public health on one hand and facilitation on the other. i think no decision will be lopsided. the most adjustments to the country list. i think we need to take in account countries, the pandemic situation they are at and the

people who come in and accounting for the local sentiment. people here in hong kong, people are very divided. there guarding the very difficult but stable control that we have achieved over many months. at the same time, people are hungry for normality's they can go out and dine. business needs to resume meetings. reporter: business can't plan right now because of the 21 day quarantine and really, one that will be relaxed. is it futile to pin this all on covid zero? meaning, the requirements china has to open the border. is that the futile goal to get the border open in china echoed there is is an outbreak again. they will have the olympics. i guess is they will not open up the borders anytime soon. edward: that is an over simple

as a generalization of the situation. not everyone will require 21 days. there is exceptions being made on a class basis like i mentioned or under circumstances and a need to do so. i think the has certain requirements. the key to that is that we would be comfortable if we are assured of the risk being minimized. i think in the case of hong kong , and particularly, as you rightly mentioned, we are anxiously seeing the reopening primarily -- reporter: is that the priority? opening it over international travel? edward: that remains a priority area. local businessman and community with family connections and even international companies in hong kong.

many of these companies look after not just hong kong but mainland and regional. they always seem mainland as an important market that we need to achieve. we are seeing that where china is attaining a fairly good level of stability in terms of control. i think that is something they have hard earned. we also need to take that factor into consideration as we talked other parts of the world. reporter: let me read you the chambers of commerce and others. this is what our later guest said. hong kong must open itself sooner rather than later or this quarantine regime could leave many in the international community to question if they want to remain indefinitely trapped in hong kong when the rest of the world is moving on. is concerned with the business community could cast a growing threat to hong kong status as an international business center. how much of a threat is that?

edward: he is a good friend and diligent leader with whom, i meet very frequently. reporter: what you tell him? edward: it is the channel we maintain with the chambers. i fully appreciate difficulties. particularly, the companies using hong kong as a base for this entire region. senior officials need to travel and i think it is no secret that 14 days is a stringent requirement. that is why i think it will have to be constant adjustments when circumstances allow. i think i am repeating myself. the list of countries is changing. reporter: it can be considered as ad hoc. again, i gotta bring up nicole kidman because it has been a leading run of the schism.

thousand a dinner yesterday and everyone talked about this. i was the only foreigner at the table. they were locals who were extremely upset by what they see as a double standard. i know you have justified it. justifying letting your hand for this tv show. this is what the government put the statement said people granted in exception for performing designated professional work which is conducive to maintaining the necessary operation and developing of hong kong's economy. how is a tv show produced by foreign platform about ex-pat privilege conducive to economic development in hong kong? i don't get it either. edward: if you betrayed that way, it will be eight is of worry. i look over a wide portfolio from commerce, industry, and tourism but also the film industry. part of my team would look after local and foreign teams

producing. using hong kong for tv stuff, this is one of the teams that are coming in with lots of people. now, the power under the role does allow certain exceptions to be made for people who might have an impact or interest on the wider economic development. including for instance, if we try to maintain this supply, we need such exemptions. from the same ordinance allowing drivers, air crew members to bring people into town. the scientific world, i remember when we were in the vaccine protective agreement. we granted exemption to that personnel. in my small area of facilitating, we are making a small exception to a handful of people who can come in to do the production. reporter: wasn't there someone

at the exact of counsel table pounding their fist and saying this doesn't look good for hong kong? hong kong government might be a little tone deaf when it dashed to the criticisms from society. edward: i think our job is to make sure we have good example and around the world and there should be exceptions provided with safety. in a similar situation, we require people to come in with a risk assessment of their origin. australia it was on our low risk countries. just two weeks ago. people coming in would only have seven days. also depending on the census. we also imposed testing requirements. not just testing in the airport but no more than seeing the 14 days they came in and since january, knowing where they go and in fact, because of this, we

are looking at itinerary. reporter: was going to a boutique part of the itinerary approved? that's what people want to know. why should going to a boutique on the second day she arrived? edward: i have personally tracked and that they are participating in the customs -- costume fitting. we notify the itinerary. there is no reason we should disallow them. i know what high-profile people always attract this. aren't we here to do the job? to facilitate? back to the question you posed, one of those examples of where we will facilitate normal business behavior which a lot of people are asking. reporter: would you agree that

more exemptions are needed rather than fewer? edward: reasonable exceptions are needed. different bureaus can pull up their recommendations. subject to health, authorities imposing conditions and final approval behind the chief secretary. reporter: i want talk about your chief rival in the east asia business world and that is singapore. we talked on friday. the mr. of transport, he said essentially, we are signaling a path towards reopening it is something for proof? we don't know. we are starting to forge that path to restoring travel and conductivity. hong kong has taken the opposite approach. you decide to cut up discussions on any bubble for now. the other jurisdictions don't have the same covid zero policies as you. we will be left behind because of this? edward: yes and no.

they may have different policies based on the consensus. we discuss in good faith and collaboration. it's not a competition game. people traveling either way will facilitate business of a mutual basis. i'm glad that the singaporean government has recognized hong kong situation and is allowing entry without quarantine requirements. that is a restriction of what we have done in these situations. after many months of discussion, unfortunately, these issues that we have adopted have not been able to enrich the original idea that we agreed. we need to observe. the singapore government has been candid in saying given their new policy, they could not meet then earlier agreed.

as a wrench mark to assess the risk to be brought in by people coming in. course, that is not the end of the world. we are hoping that singapore has been doing a good job in containing the in city outbreak. they can achieve back to the situation which they have achieved three months earlier. they're coming back to say the lowest risk category -- reporter: you are not ruling out a bubble in the future? you have had discussions with other asian and oceanic countries and they are all off the tables right now? edward: in the hong kong strategy, i mentioned there are three strategies. bubbles are the highest. april traveling to his core or bubble which is sealed against the risk would allow quarantine free. that remains the highest option. for instance, we could achieve

that arrangement with the mainland of china, that could be a bubble. if there are countries in the lowest risk category able to come by with the same objective and mechanism, i mentioned on the outset that there is no quick fix. we all need to work hard and take into consideration both local and local considerations. reporter: there are other issues. the last on the quarantine issue. you think the government missed an opportunity with this case that sparked the larger and longer quarantines? to push the 21 days. this one case, asymptomatic. it is an argument that vaccines work. instead of that knee-jerk reaction of shined on the borders and making further quarantine, you could've shown a lot of energy to convince people

you are below 40% vaccination and convince people to vaccinate? edward: first and foremost, our top priority is to encourage. and require people to get vaccinated in full. i think we are seeing this. we are now almost 60% of people taking the first job and we are moving towards the areas of people living in hong kong and the more vulnerable once are backed by a lot of persuasion. that is ongoing and i think achieving. i think to say that the reit -- reaction is knee-jerk, out have to take exception. reporter: that is the perception. you need to communicate better. edward: that's why i'm talking to you and your audience. i was doing might mediate stand up on a weekly basis and when it came to the question of beyond my per folio.

it takes an entire community to work together. i think hong kong people including foreign business in hong kong, they'll fully agree on one hand that this situation is changing. i think families, children, over age people, they looked to government to put up a good public-health defense for them. vaccinations and all these in variance may not be entirely proven. reporter: we need to get to the anti-sanctions law. they postpone a vote on that. are you relieved? that will put heavy burden in putting banks in a bind to work with u.s. and china sanctions. our edward: the senate -- edward: the sanction is under -- unjustified and a blatant indifference of hong kong

affairs. this is the wrongdoing on the one side. it would be natural to put up a defense but there is nothing from the recent meetings. something we can comment on. my position remains that while those sanctions were hurting both u.s. and other interest in our part of the world. reporter: the retaliation is justified? edward: i would say it is a natural defense. whatever is unfairly imposed on hong kong, we need to defend our interests. including all the people and american interests in hong kong. reporter: thank you so much for talking face-to-face and talking candidly on bloomberg television. i will send it back to you. haidi: that was an extent -- exclusive interview. we do have some breaking news when it comes to japan's numbers. let's start with the

manufacturer coming in at 52.4 versus 53 in july. it is a seven consecutive month of expansion still, when it comes to the overall index as well as output. we are seeing new orders falling to the lowest reading since january of this year. when it comes to the flash services, they -- pmi will give a reading lower since may 2020 and a 19 consecutive month of contraction there, falling to 43.5. we are also looking at the flash composite number there, lowest rating since august 2020. let us take a look at how the markets are faring. su: sophie: we also have a snap election brewing in later in the year after in opposition backed candidate when the mayoral race in yokohama. we are seeing the yen under pressure as we count down to the jackson hole symposium. we are seeing risks unmoved when it comes to equity with stocks

leading the charge in tokyo. the nikkei is getting more than 1%. you have it there climbing with autos and tech stocks leading that charge. over in sydney, we are seeing stocks gained ground, holding a five day drop is higher amid speculation that we may see lockdowns lifted earlier than expected. the kospi has climbed back some of the 3% drop is looking firmer below that handle this morning. flash trade data showed growth is holding up but it may weigh on korean assets pit we are seeing a pickup in commodities. i want to quickly point that out. this will coming after the worst run of weekly losses since 2018. putting it on the board for some stock movers of note across the region. we are seeing lg chem weighed heavily this morning. this after gm recalled bolt tv's for the third time in nine

months over battery fires in a shadow cast between at lg and gm. we are seeing sk ink shares lima higher as they go under a restructuring that will see them absorb materials due to a share swap. fuel retailers shares are on the move as we get results from the secretary. ample has confirmed a multibillion-dollar takeover that could be rallying. we are seeing a metal recycling company rally for the most in four months on its planned buyback of 150 million australian dollars. shery: let us now get to su keenan with the first word headlines. su: we start with singapore which is looking to add more countries to the vaccinated traveling program. this is a signal to the world that is committed to reopening. after allowing vaccinated visitors from germany and brunei

to next month, the ministry of transport says it will expand on adding eligible countries. >> the intention really is to do this well so that we can then scale up. business -- this is a critical process to make sure all parties understand what is required of them, including the travelers they can comply and meet the requirements. su: malaysia's new prime minister has struck a ton of reconciliation in his first public address. he has invited opposition leaders be part of the pandemic recovery council and calls for cross party cooperation. he is the third prime minister in 18 months. his predecessor resigned as anger grew over the handling of the epidemic. widespread power outages and floods have been recorded across the northeastern section of the u.s. this after tropical storm henri

made landfall. it brought winds of 100 climbers per hour and heavy rain. 1000 flights were canceled, train service disrupted and some u.s. -- tunnels were flooded. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: kamala harris begins her trip to southeast asia as u.s. vice president on the basque the troubles going on in afghanistan. she is due to meet the prime minister later. she will also be visiting vietnam. joining us is the senior fellow at the institute. great to have you here. there will be trade, regional tries, the semiconductor crisis but really, it is a crisis in against him that will loom large over these talks you would imagine? william: definitely. what we are seeing is that u.s.

plan is to have kamala harris check this swing to southeast asia as the u.s. secretary of defense did last month. she is coming to singapore and she will go on to vietnam. she will likely talk about the united states in the specifics of stuff like rule of law, trade, connectivity, maritime security. as you said, the optics are bad. we have just seen eight days ago, the u.s. hightailing out of couple and afghanistan. -- couple -- kabul. for the u.s. to say they're committed to alliances in the asia-pacific at a time when the u.s. is hitting the exit in afghanistan, the optics are fouled up. haidi: other than that, what

does this say about original alliances but what does this mean for the effort to contain chinese influence given that we have heard that the tele-will likely have to tap funding from beijing? edward: william: they will retain their embassies in kabul, moscow, and pakistan. it is very clear there gains for china here given what the taliban is doing. they've already met with the chinese even before august 16. we are seeing that the u.s. will have problems in that other pieces of the puzzle are being rearranged as we speak in central asia. if you look at it on the bright side, it's not really

interconnection between central asia and southeast asia. they're kind of on different planes. what is happening in afghanistan is kind of a loss for the u.s.. it's alliances and partnerships in this part of the world, it does look like they are going very strong. shery: what is the view from southeast asia on the biden administration, whether it is the engagement southeast asia or pushing back on china? william: on both counts, the biden administration has been doing really well. there are some national security guidelines talking about engaging more and identifying between vietnam and singapore. there is a statement that kamala harris will be talking about when she is here over the next two days.

in terms of containment of china, i would not use that word. i don't think anyone in the biden administration uses that word. what they want to do is manage the rise of china and a key component of this is working through and with interested allies and partners in the united states. i think they go back to the trump administration and play game of catch up and they're doing pretty good actually. in terms of shaking hands and being a good partner here. shery: can we expect progress on the digital trade agreement being talked about? william: it is a model that the u.s. is basing it on the singapore digital trade agreement. we haven't heard any news about it. what actually happens, it will be a boost for the region.

we all remember the debacle under president trump and its partnership in 2017. the u.s. really needs to come out and say hey, on the economics agenda, we have got something to offer to the region in the form of digital services. no use -- news yet but we -- anticipate what is happening. shery: it was great having you on. thank you. you have more analysis on the kamala harris southeast asia visit later. we will be joined by the former ambassador to singapore. haidi: if got -- shery: we got a report on the chinese presidents rhetoric has a signal to closing the loss cap and tackling what they call unreasonable incomes. how reporter joins us now.

what did we find from the data? -- how reporter. -- our. reporter: we got some information from 2012 until now. while he mentioned, and prosperity in his first eight years in power, it picked up last year and it surged this year. we -- it is an indicator that this is becoming a policy priority. we also found that when china talks about creating this all of shape income distribution, wide in the middle and small on both ends, usually talks about the lower and middle income. it is focusing on those people in the higher income and not just excessively high, but just high. haidi: why these catchphrases and slogans becoming so important now? reporter: these catchphrases are

just a way to communicate to the public that they are about agenda setting and ultimately, to mobilize local officials. it is important to pay attention to them. we've also seen this crossed cyclical approach being mentioned and economic policy. it is indicating more preemptive action taking a longer term approach and taking smaller steps. some new phrases that are really giving us an insight into china's policy planning. shery: what is the history behind this phrase, common prosperity. -- prosperity? reporter: it was included in party documents by mao zedong. during that era, lost emergency after he lost focus -- was in focus on developing and letting some people get rich first.

he never really forgot about that term common prosperity and saying it is something we need to tackle once the economy develops a certain stage and it seems that we are seeing some of that now. haidi: lucille lou in beijing. we do have more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

shery: we are looking ahead who were -- reported their earnings later. anything from chinese crackdown will dominate the earnings call. we are joined now for a preview. catherine, what should we expect on the business performance i of things? reporter: for jg.com for the month -- jd, we expect them to report higher retail operating margins and take a step back. the sale was one of the highlights for the company during the three months. they rose 28% on a year in year basis. that will be a positive for the retail businesses. for the rest of their business, that includes jd logistics as well as newer ventures. similar to what we have seen in

some of our peers including alibaba. we do expect to invest more into these businesses and that will result in more losses from these two segments. haidi: how big is the regulatory risk for jd? reporter: i guess similar to what we have seen and what we are looking out for in the retail businesses. we do expect two things. some of the calls, transportation calls, and the delivery perspective, we would like to see whether the company mentions any highlights on that. with a -- there earlier mentioned they are looking to increase in wages for some of their delivery logistics. we will have to see how that

impacts their businesses over the next six months or through the rest of 2021. in terms of the anti-trust data, privacy, regulatory risks, i do think on a relative basis, jd.com for antitrust perspective, they are in a sweeter spot i would say because of the way they manage their business. haidi: the xinjiang is rejecting a regulatory move from the ipo. julia, this is about the law form under -- law from under scrutiny at the moment? reporter: there were not many details in the notice but they are advising that the chip unit is being thrown by the crs e.

that is why it has been suspended or the review of it has been suspended. we don't know what the deal is or what they are focusing on. this came to us on the weekend so it is hard to get more details. shery: what we know so far is that the chinese tech companies have really received the spotlight from regulators. reporter: they have indeed. they have indeed. there been cracking down on all of their private enterprises. it is from ride-hailing to food delivery and the pursuit of social stability. that being said, electrical vehicle companies and those related to that haven't been targeted and fits with china's ambition to cut down carbon

emissions. it is not clear yet if that is linked to that. it might be completely separate. byd shares and others have rallied. so far, it is not clear if this comes as part of that crop down or if it is separate. haidi: as the world continues to struggle to handle the delta variant, we are seeing different approaches regionally to that new reality. for example, in hong kong, listen to when we just spoke to him earlier about the priorities when it comes to reopening borders. >> we are seeing the prospect of reopening. reporter:reporter: is opening -- >> that remains a major part of

the area. haidi: we are seeing here in australia and new zealand, some attempt to keep to covid zero though you listen to the prime minister here saying that isn't possible given the sheer number of cases. singapore is interesting because they started with elimination but they're now trying to live with a certain acceptance that this will be with us. shery: singapore has taken that approach as well. it will add more countries to their vaccinated traveling program. the signal that they are really committed to reopening borders. take a listen to what the singapore transport minister had to say. >> the intention really is to do this well so that we can then scale up. this is a critical process to make sure that all parties understand what is required of

them, including the travelers they can complied meet requirements. shery: very important in this endeavor is what happens with those vaccinations. in places that have line this campaign. present of taiwan just received their first shot of a domestically developed vaccine on monday. we will watch closely what that means for supplies globally as well. haidi: i think the more the merrier when it comes to effective vaccines at this point. in this very uneven raced -- raced to get the world vaccinated. we have more on the impact of hong kong's current virus restrictions when it comes to business sentiment. we spoke with him earlier about it if you recall. we get the other side. he will be joining in the next hour. that is it for daybreak asia. mother coverage continues as we look to the start of trading this monday.

bloomberg markets the china open is up next. this is bloomberg. ♪

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>> we're kind onto the opening trade. our top story today, the wealth gap. president xi is doubling down on his prosperity rhetoric. and what may be a warning to china superrich. in the delta risk rises. investors await the fed policy clues from the jackson hole symposium hap