>> a very good morning. welcome to daybreak australia. >> we are counting down to asia's major market opens. >> good evening. i'm shery ahn. the top stories. the fed taper timeline may be delayed after the latest u.s. jobs report signals a drop in hiring. haidi: the rba meets amid a jump

in covid cases. shery: in the fight to reshape japan's political candidates -- political land states -- clinical landscape. piercing u.s. futures muted at the open, this after the s&p 500 wavers on the friday session. we are in the midst of a labor day long weekend but we saw the weekend drop data. really taking a hit across asset classes. we saw the dollar fall to a one-month low. right now rebounding slightly but still after a two week loss, it week number cutting beyond the fed taper by year. oil prices fell on friday. they continue to be under pressure around the $69 per barrel level. put it into the context of two weeks of gains given hurricane ida still hurting u.s. oil production. it is really about those payroll numbers. really complicating the fed

intention to taper by year end. if you take a look at this chart on the bloomberg you can see already the rate hike outlooks have started to ease from the june july peak. no wonder we are seeing support for the stock markets. the other chart on the bloomberg showing another week of gains for stark markets here in the u.s. -- stock markets here in the u.s. we have seen 20% of gains for the s&p 500. where custom here is unknown. in the final four months we saw the likes of 20% gains or 30% plunges on the s&p 500 so investors are looking closely for where we are headed for the rest of the year. but when it comes to those week job numbers, perhaps some comfort can be that the u.s. employment disparities among racial and ethnic lines have narrowed, at least in the month of august. so-called prime working age employment advancing for black

workers to 73% which has outpaced the growth in any other group. haidi: really good news. but when it comes to inequality on the vaccine front, we are still seeing a divergence in between the haves and have-nots. we've heard from anthony fauci over the weekend talking about the latest when it comes to booster shots saying the third booster shot is likely to come from pfizer first and modernity could be delayed. we know there have been accusations of political interference in the process in the u.s. this comes at a time when we are looking at data that suggests wealthy nations like the u.s., like that -- like european nations, could have 1.2 billion doses they do not even need at a time when they have only delivered a meager part of what they have promised to the developing nations that still struggled to get even some of their people to get the first shot. shery: at least around 15% from

those promised at doses coming from the eu and g-7 countries. as we head towards the asia open, we are watching what is happening with dv global. we have learned that perhaps we could be seen the chinese state really taking control of this company just three months after going public. bloomberg is learning that the beijing municipal government has proposed taking a stake. we do not know if this deal will go through. just the fact it is being talked about raises questions about what it means for the xi jinping's government, whether he is really veering away from free markets. haidi: this charm offensive for the uae, this blueprint to try to lure in foreign investment, they want to lure hundred $50 billion and a large part of it will come from asia and increased africa trade. some of the countries they target, including the likes of korea, as well as even turkey. it does seem like the uae is

kind of looking beyond its region to try to build its competition and maintain their place as the regional financial hub. let's get back to what you started with, key u.s. jobs reports slowing -- showing the slowdown in hiring. let's get more on the outlook with our editor in washington. the latest showing is just the smallest gain in seven months. it seems like a setback. does it play into this idea that this is a very uneven and duplicating sort of recovery? reporter: absolutely. it plays into the whole uncertainties surrounding the pandemic and you also see it on the broader real economy numbers. consumers and also globally, tourism for example. in terms of the fed you are looking at them holding their next -- their next policy

meeting in two weeks and their expectations are clearly that they will tap the brakes on anything like reducing asset purchases or raising interest rates, and other words. tapering. the flipside is the way the president, with his expansive economic agenda, actually not has an initial argument to say, well, we need to get this done this fall, because you see how fragile the economy is. shery: what does it mean for the bond market? we have been waiting for the day of reckoning coming with these jobs numbers and the latest eco-data as well. reporter: treasuries have been remarkably stable. the data last week, including the jobless numbers, actually did little to change it. the volatility measures in the treasury market are low. it looks like the market is now

expecting the fed to remain dovish or to put off a more hawkish stance a bit longer. so that day of reckoning has just kind of been pushed out a little further now. haidi: the virus resurgence looms over the u.s. recovery. our market starting to get a reality check on that? -- are market starting to get a reality check on that? reporter: yes. it goes back to the uncertainty factor. how do you make a call as a can -- as an investor or a consumer? we have seen again and again that these virus variant's, like the delta variant everyone is talking about. they are unpredictable. some people do not want to get vaccinated. at the same time, u.s. vaccination rates are slowly but surely going up. how much is enough?

the idea of herd immunity it has sort of faded as -- immunity has faded as a sort of panacea or solution. one thing is for certain -- these back to normal scenarios you saw in the u.s., at least, in the summer, including from some of the big banks, for example -- that is giving way to a more somber picture as we head into the fall and the winter with missed forecasts and supply chain squeezes we have heard about. it is a much more -- again, a much more uncertain picture. shery: now, with the u.s. job numbers out of the way, let's see how we are setting up for the asian open. what are you seeing? >> looking at a soft start to the week. the aussie dollar ahead of the rba decision coming under

pressure. they will see if the central bank will delay tapering. checking on the offshore yuan. it is trading near a june high. chinese credit data and trade numbers are due later this week. pulling up the terminal for what else we are watching. keeping a close eye on crypto market. -- crypto markets. jp morgan says it is frothy again. bitcoin is trading at about $51,000. looking at reactions in the crypto market. switching up the chart once more, we have the nikkei flirting with 30,000 points last week, pushing through resistance and the latest turn we have seen in japanese policy. the bench park could reach 36,000 -- benchmark could reach 36,000 this year. haidi: that race to become japan's next heater is heating up after the -- next race is

heating up after the shock announcement that prime minister suga would step down. we are mulling the dramatic changes. how is it all shaping up monday morning? reporter: it will be a very interesting three weeks until we have this leadership vote likely on september 29, ahead of what has to be a general election by the end of november. because the ldp and its coalition partners have a super majority, whoever wins the horserace is going to be the next prime minister. the jockeying has definitely begun after the shock announcement by prime minister suga that he would not run for leadership and therefore will step down as prime minister, fulfilling his term. you have the front runners and some very interesting -- some would call longshots, but also transcendent candidates.

trailblazers. two females likely to throw their hat in the ring for prime minister, including one shinzo abe has endorsed. that is an interesting angle. i want to get to the front runners. probably rising over this week over the top is caro kono. -- taro kono. he is widely seen as the most popular candidate for the populace and business community. he has by far the most twitter followers of all the candidates. he is the youngest at 58 years old whereas everyone else is in their 60's. he is an english speaker. he went to georgetown university. he is probably -- probably the most important factor of him is he is part of the faction -- the faction led by the deputy prime minister. that is what this election will come down to.

factional fighting, if you will. you have the faction and his pick, and another faction led by the foreign -- the former foreign minister, who is also the first, aside from suga, the first declared candidate. he wants to spend trillions of yen in pandemic relief, in fiscal policy. he wants to keep monetary policy bold, as well, until the pandemic subsides, and then seek a more balanced approach. so they are considered the front runners. shery: we know the handling of the covid pandemic played a key role in prime minister suga's resignation. what will do for the next one? reporter: it will be in an

intense backdrop. which candidate will strike there will -- will strike the right tone with the populace? 70% of the japanese population blames the government for its poor handling of the covid response in a pull. -- in a poll. it was a balancing to lock down and pull off the elliptic's. -- the olympics. there is news that tokyo will likely this week announced that it is extending its state of emergency beyond september 12 by another two weeks, including three surrounding prefectures. we are also hearing that for other prefectures in other parts of japan might lift their states of emergency. so if course, covid with another 2400 of their cases reported in tokyo alone on saturday. that will be at the backdrop of all this politics. shery: stephen engle, our chief

asian correspondent to real have -- asian correspondent. we will have plenty more analysis on the shuffle in japan. >> chinese officials pledged to tighten supervision in the financial services industry. the central bank will close loopholes in its for an tank -- fintech regulations. they also told that authorities would -- australia's treasurer is expected to teleconference later monday and say that the nation's economy will stay resilient in the face of china. their top trading partner band imports including seafood, wind, and coal after diplomatic tensions flared last year. while exports of targeted products have dropped by almost

$4 billion, sales to other markets have grown. the white house says it is confident joe manchin will back to president biden's $3.5 billion -- $3.5 trillion spending package. they claim the plan as note debt. his vote could be key in an evenly divided center last week he said rising inflation and soaring national debt should mean a significantly smaller land. -- smaller plan. the top white house medical advisor said the pfizer vaccine is the only one likely to be approved for u.s. booster shots against covid-19 initially. while them a dharna shot may be delayed. -- while the moderna shot may be delayed. the white house has faced criticism of political interference in the review process. 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 vonnie quinn. this is bloomberg. >> still ahead, we discussed the implication of the japanese prime ministers resignation. coming up next, we have more insight on the markets with kim forrest. this is bloomberg. ♪

haidi: time for the week ahead. our look at the key market moving event stopping the agenda over the next few days. it will be another easy -- busy week on the eco-front. it central banks delivering decisions. we will be seeing if european policymakers dare to dial down stimulus despite the delta variant threat.

while the rba government gets another chance -- governor gets another chance to delay the taper, china is presenting gdp numbers on wednesday. the prime minister of japan's exit is weighing. china's trade this week -- trade credit and inflation data this week are must watches. global supply chain that shocks have pushed up prices. shery: here in the u.s. it is labor day weekend, although this week august -- those weak august job numbers putting a damper on things. the smallest gain in seven months, with zero growth in the leisure and hospitality industry. we will see if the labor day holiday's added to some of those gains and perhaps more activity, but adding to the pain will be

the expiration of key jobless benefits, although republicans have argued that they made americans less willing to return to work. still, the setback is all but certain to speck the fed's taper plans. -- certain to push back the fed's taper plans. >> definitely this has some delta variant on it. >> this is the long game coming on. >> there is one huge red flag for me in the report. >> the hospitality number and the rest are trend -- and the restaurant number. we had xoma's -- we had almost zero gain in that area. >> the market is looking through the saying this is temporary. >> the federal taper. >> the market is pushing back any taper announcement to november. maybe december. >> they do not need to rush into it. the most important thing not to lose sight of is the emphasis that the tapering is not tightening. shery: we have a packed week.

our next guest is saying that the fed chairman has been smart to prioritize employment over inflation, which is why she says the taper has just been pushed back from september. kim forrest joins us now. kim, does this actually give us more room for equities to continue the push higher, if we expect the fed to delay the taper announcement? >> i think it does. not for any direct sort of influence. what we are really looking at is, what is going to happen to the 10 year and interest rates? and as long as the interest rates remain really, really low. which is where they are right now. you are forced as an investor to pay up for class -- for cash flows. you will have to pay if -- you will have to pay a higher multiple in a low rate environment as it looks like, and rightly so, that they keep

pushing off the taper, because they are trying to get the country back tomorrow full employment -- back to more full employment. shery: some canaries wrap sounding the alarm a little bit when it comes to chips, homebuilders, and small-cap stocks. they all underperformed. the chart on the bloomberg is showing the semiconductor index has petered out in august. can we find value in these sectors or do you stay away, given what is happening with the technical signals? guest: i think what they said was -- you know -- it is hard to get a semiconductor chip. i just read over the weekend here -- or, long weekend, that it looks like some car manufacturers will start shutting down the next couple of weeks because they cannot get the chips they need to fill all the orders.

it is a real impact. however, if you are a chipmaker, you are still able to ship as many units as you can and there is probably not going to be any argument about the price people are paying. so i think their earnings should look pretty good. looking out into the future, and that is how i make my stock picks, i would look at this as a time to buy semiconductors, because the short thesis is this -- we love technology. it gives us productivity. we will need more chips next year then we have this year. and that is where we get them. from the semiconductor makers. haidi: do you worry about the headwinds when it -- when it comes to the tech sector and regulatory issues in china having a more broad -- having a broader regional impact? guest: actually, now. it seems very self-induced and it is in a very small area.

well, i think it is. and i think it was to not necessarily impact chinese people, but the investors outside of china. and i think that is a job well done for them. haidi: kim, always great to have you. joining us from pittsburgh there. we have lots more to come on "daybreak: australia." this is bloomberg. ♪

shery: here's a quick check of the latest headlines. beijing's municipal government has said to -- is said to have proposed an investment to give state-run firms of -- state-run firms a stake of didi.

didi denied the report. some products will be no longer offered in singapore after regulators said they could be in breach of the country's payment services act. the app will be removed from singapore ios and google play serves -- google play stores as of friday, but it only affects the website. all of this company's directors have resigned to facilitate the process. the company owned by hl pro as it had its assets frozen -- the company owned by a jailed democracy advocate had its assets frozen. haidi: coming up, the biggest landlord in china's -- in hong kong on concerns rising from political claims downs. we get an exclusive interview.

that is coming up next. this is bloomberg. ♪

>> you're watching "daybreak: australia." a u.s. lawmaker says afghan interpreters are being prevented from leaving afghanistan. he tells fox news the taliban will not let the chartered aircraft depart, effectively holding the passengers hostage. an afghan official told the associated press that many do not have passports or visas.

iran's president says negotiations to reapply the 2015 nuclear deal must lead to the removal of sanctions. his offer says he told the french president that iran is not interested in the state of negotiations. stocks of bit -- talks a been on hold since his june election and tehran has given no indication on when they may resume. the un's chief climate advisor will teleconference in canberra that australia should urgently join its g20 counterparts in committing to a net zero target. the repair barracks -- prepared remarks say that a failure to act will cause more climate events. the uae says it plans to expand its trade ties and fast-growing economies in asia and africa, including south korea, indonesia, and kenya. official see -- say they will seek to draw $150 billion in

foreign investment to reposition the emirates as a foreign hub for global finance. it faces mounting competition from saudi arabia. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: the weekend saw more record numbers of covid-19 cases in new south wales. the rba may scale back its quantitative easing as the opera continues. -- as the outbreak continues. reporter: another dire weekend. a record on saturday, 300 33 cases. a little less on sunday but a total of 3000 cases over the weekend and the premier in new south wales is warning there is worse to come and the case numbers will spike in the coming

weeks and the hospitalization rate will spike, as well. on the upside, the vaccination progress is looking good. 41% of the state now fully vaccinated. 74% has won those. they are still on target to hit the mid-october target of 70% fully vaccinated, which is when restrictions are likely to start easing. so lockdowns will continue until the target is met. in new south wales and victoria, the two states account for more than half the country's economic output. we are spiting to see a significant hit to gdp. shery: what are the implications for the rba meeting tomorrow? reporter: it turns tomorrow's meeting into a live meeting with 10 of 16 economists surveyed by bloomberg seeing the rba deferring its plans to taper its quantitative easing. that would reduce bond purchases from the current 5 billion per week down to 4 billion per week. but still, they are key to stick

with the plainly comes to scaling back qe. he sees fiscal policy is more suited to doing the work. we also have the august minutes of the rba meeting saying they would relook at that if there was bad health news, which led to a significant setback to the economy. so the question tomorrow is, has that threshold been met? is that enough for the rba to look at the -- at deferring its plan to qe program? we do have a little good news. the treasurer will give a speech to say the trade strikes by china against australia have not been as bad as foreseen. $4 billion in exports were hit but he pointed out in his speech that $3 billion of those found new markets. haidi: paul allen with the latest as we count down to the rba decision on tuesday. asia surge in coronavirus is compounding supply chain blockages. our next guest says they are

expressing supply chain shocks. your customer list goes beyond this. just tell us what -- even anecdotal experience has been. guest: there is a big shift from last year. there was a big demand collapse and now there is a supply chain shock. so with demand rebounding in the west, supply is not keeping up. you are seeing capacity constraints throughout asia. if that has been exacerbated by lockdowns in southeast asia, and before that, east asia. in vietnam a lot of factories are not producing at full capacity. a lot of places like indonesia. and before that, india, bangladesh. with capacity reduced by lockdowns, and demand rebounding, there is a classic

supply squeeze at the moment. of course, when there is a shortage and it are inflationary pressures, we are seeing this both in the manufacturing and materials. so from cotton to all the other materials. to the actual make of the apparel. we are seeing inflationary pressures. i guess it is pretty clear what will happen. down the road, at the retail level. haidi: down the road, when it comes to christmas -- just a few months away. is it possible to frontload to taught -- to try to sidestep some of these issues? what are your expectations? guest: i think they will try to frontload it by ordering earlier, but these designers sometimes are very -- they stick to their original schedules. even if you frontload, there may be delivery slides because of the supply issues. so really, right now there is a big?

whether goods can be delivered on time and for the last quarter for the very important holiday season. shery: what products are using the most shortages of echo -- shortages of yucca -- shortages of? guest: casual items. there is no need to buy dress shirts because people are not going to the office. but recently because offices are expecting to open, even the formal spaces going up. we are seeing sort of an across-the-board rebound and receipt not abating for the next six months. -- and we see it's not abating for the next six months. freight rates have gone up through the roof. there is another supply squeeze. i think retailers are now paying a whole lot more for freight.

especially for bulky items. i have heard from furniture makers that they may be paying like 50% rate -- let's say the goods of shifting is one of dollars. there paying two dollars for ocean freight going from asia to the u.s.. right now, demand is strong. retailers in france want to satisfy that demand. but at what kind of costs are they doing it at? so that is very scary. haidi: you also seeing disruptions when it comes to the labor force in -- to the labor force? guest: yes. a lot of the workers in these factories have switched jobs. they have left the factories to go into retail, sort of a service industry. they may not be coming back. there are later short -- they were shortages definitely an issue.

we are seeing this in producing and consumption countries. we heard in the u.s. shops are closed because they cannot get the help they need. haidi: stanley, we wish you the best of luck going into this very busy season. giving us a clemson to some of the supply chain and logistical -- a glimpse into some of the supply and logistical nightmares. if you think about studying supply chains, it is probably not the most exciting part of the mba if you were to specialize, but we are seeing more focus on supply chain specialists when it comes to doing this is a degree. harvard business school is saying that the problem is these traditional supply chain models are so inflexible, so this kind of disruption, something as unprecedented as a pandemic, throws out all of that modeling, all the expectations and planning out the window. we are seeing much more focus in these businesses on things like

risk mitigation, data analytics, product reassuring -- re-shoring. shery: we have been dealing with the pandemic for almost two years but even before that we had trade disruptions, given the u.s.-china tensions. now you have shipping rates continuing to surge and you're going to see perhaps not the sexiest of degrees but more interest in supply chain related degrees. coming up next, kathy matsui joins us to discuss japan's political and economic landscape after the prime ministers surprise resignation. this is bloomberg. -- after the prime minister's surprise resignation. this is bloomberg. ♪

haidi: --shery: competition between global financial hubs is a fierce but one regularly ranks at the top when it -- when comparing the cost of commercial real estate. hong kong toppling -- hong kong topping new york and london, collecting 26% more than london's west end.

$240 versus $189 when it comes to occupancy costs. at the center is hong kong land, the central business districts. -- central bistro -- the central business district's biggest landlord. we spoke with the ceo about the impact of social unrest and pandemic restrictions on the city's commercial real estate demand. guest: obviously the macro environment is something we deal with on a regular basis. in reality, we do not see the leasing demand subsiding at all. what we see is a lot of corporate's are elevating and going back to quality. they are removing and going back to quality premises, which is what we offer. >> travel has obviously been restrictive right now, and people cannot travel around the world. how difficult is it for you to strike these new contracts and get more people to lease your properties? guest: like i said, we have

found them -- we have found the market is quite vibrant and resilient. we have seen a lot of clients upgrading and coming to talk to us in terms of facilities. so, like i said, it is proven by the numbers. our vacancy has dropped since the beginning of this year. >> it talked about people looking for more quality, re-central is a you could call it, -- re-centralization you could call it, i guess. but here the likes of companies moving back office staffs to cheaper locations. do you believe there will be a decentralization or is it the opposite going on? guest: i do not see that all in the portfolio. there is a lot of talk about that but i do not see it in my portfolio at all. what i have seen going forward is it going back into central. >> even with this office space,

the supply that supposed to be booming? why do you think that is? >> i think what we offer in the central district is a very unique ecosystem. this is probably one of a few places where you can do 12 meetings a day without leaving a one mile radius. you can go from one building to another and do 12 proper meetings. i do not think any place in the world can do that. not new york, not london, not tokyo. the mexican do -- the max you can do there is 45. the efficiency we provide is that you can do 12 meetings a day and that is very unique. no one can match it. >> d feel like you have a couple of years before these buildings open in central for you to try and pick up as much market share as you can coming years? guest: i think it is more the other way around. we have a very strong position here. over the last two years we have done a great deal in terms of

accentuating the amenities we provide, the flex facilities, the ecosystem that we have. again, i do not believe that -- the infrastructure is competitive, but having said that, having these new buildings in central is very good and valuable. it brings a whole central district into a very much stronger position. >> you mentioned about singapore, shanghai, hong kong. all big hubs in the region. you mentioned there are not a lot of people willing to leave hong kong at this point, but are you seeing anyone at least recalibrating how they view some of these markets and where they strategically put their offenses now -- their offices now? guest: i think everyone puts satellite markets -- satellite offices in these core markets but what i've seen is that hong kong is remaining the anchor of all the head offices here. we have not seen anybody actually make a big move to move

the head office into other jurisdictions. again, for hong kong it is very simple. it is basically the kind of corporatism we said. the low tax rate, the free flow of money. the rule of law. a very good regulatory system that is internationally right -- internationally recognized. give a strong hr pool. and you have the proximity into china, one of the biggest core markets in the world. so geographically, hong kong is very uniquely placed to thrive in this new business arena, in the commercial arena. haidi: that was raymond chow there speaking exclusively with our colleague yvonne man. we will have more on the outlook for hong kong's property sector a little more -- a little later on in "daybreak: asia." time for morning calls ahead of the trading day. sophie is in hong kong.

>> the aussie in focus with the rba decision. some are bullish given the base case the bank is looking to delay tapering due to covid shocks. and flipping the board we have morgan stanley expecting a tapering delay to november with the rba forecast result back in august facing substantial downgrades. switching out the board, over at jefferies they are staying modestly a list on japan with little chance seen of a policy change under a new prime minister. the broker is outlining three opportunities they see in japan, eyeing shipping companies -- buying shipping companies. they say look for opportunities after the earnings season. and they say by recruitment companies. better employment data will catalyze consumer spending. shery: so investors could do much more than buying the company. japanese stocks continue rise -- rising higher with hopes of more

stimulus after the primus or surprise resignation. kathy matsui joins us now. she was the former goldman sacs vice chair in japan. always great seeing you. for you, what are the great -- what are the key implications of suga's resignation? guest: number one, markets do not like turnover at the top of japan's leadership, which was frankly the case for many years leading up to the second abe administration. i think what the market likes about the second abe demonstration is that there was stability at the top which enabled lots of reforms to happen beneath the surface. the question for markets now is, will the successor to prime minister suga drive and era of -- drive another era of stability, or will it be instability all over again?

i think that will be the near term focus. shery: our member seeing about 40 prime ministers in my five years in japan. so we all removed -- for new prime ministers in my five years in japan. so we all remember that very well. but it is still the liberal democratic party. do expect big changes? guest: it will still be the same party. it will most likely maintain the current fiscal and monetary framework. japan is going to present final q2 gdp data today. even though the economy is on a gradual up sling -- upswing, it is lagging the recoveries we are observing elsewhere in the world. hence, we believe the monetary policy framework of easy policies on both fronts will be maintained. haidi: the balance between protecting the economy and reining in covid, clearly that

was a balance that prime minister suga seem to have gotten ron. -- gotten wrong. what does the new leader need to do? guest: sure. i think that while there has been some progress, for example, in the vaccination rollout, which frankly started extremely slowly a few months ago. it has ramped up in recent months, yet japan is still pretty much behind most other large nations around the world when it comes to percentage of the population that has been fully vaccinated. to manage that process and accelerate the process, it will hopefully lead to a faster normalization of economic activity. beyond the near term cyclical outlook, i thing it is also important for market observers -- i think it is also important for market observers to -- what is the new premier going to do about structural reform? you have to give a little credit to suga-san for announcing a

commitment to ned zero carbon initiatives and launching a digital -- for net zero carbon emissions and launching a digital agency. haidi: the nikkei may hit 36,000 or return to market malaise. split views as to what the new leadership could bring. to be fair, under suga we saw the 30,000 level for the nikkei, which abe was not able to do. we saw a lot of winners being created out of the selective reforms. what would you look out for in terms of the catalysts for upside? guest: precisely what i mentioned earlier. behind -- beyond the cyclical policies than do government will administer to the economy, we want to focus on, what is the new administration going to bring to the table, vis-a-vis concrete steps to realize a greener japan?

to realize a marginally effijapan. beyond that, i think there will be -- to realize a more digitally efficient japan, and beyond that, i think there'll will be a focus, is this demonstration going to continue government reform echoed that will be critical for investors to decide -- should i pay attention to japan or not? shery: your new fund is focusing on investing in late stage japanese startups. have you seen anything new in the innovation stage -- space? what changes can we expect in the next two years? guest: precisely the reason my partners and i started this fund is because we are seeing lots of opportunities cropping up as the next generation of entrepreneurs , filled with talent, technological capabilities, capital. it's available in this market. we think that with our esg focus

, these companies that incorporate esg into the core's and strategies can outperform -- into the core business strategies can outperform their peers. we think there are a bunch of hidden gems in the ecosystem in japan and we hope to back them and support them and hopefully turn some of them into unicorns in the future. haidi: kathy matsui with us, always great to have you. stay with us for more analysis of japan's political and economic process. tina barrett and the former deputy ambassador to the u.s. from japan will be a long with their views. this is bloomberg. ♪

haidi: we continue to really monitor the divergence when it comes to climate policies between australia and other international bodies like the u.n., as well as in the u.s. we have seen this kind of division between washington and canberra in particular. despite all the evidence and warnings in this latest report of klingon touch of cleaning on to being able to bring coal into the new tariff. shery: a once in a generation

opportunity to transition to new energy that perhaps australia is missing out on. clean energy, lithium batteries also soaring. we have plenty more to, on "dayb -- we have plenty more to come on "daybreak: asia." that's next. this is bloomberg. ♪

>> welcome to "daybreak asia." collects we are counting down to the asian market open. >> our top stories this hour, the fed's tapered timeline set for a delay after the latest u.s. jobs report signals a drop in hiring. japanese futures pointing higher after the decision to step down. a