♪ >> good morning and welcome to daybreak australia. we are counting down to asia's major market open. >> the top stories this hour, bitcoin tumbles as el salvador posco rollout has a rocky start. -- el salvador's crypto rollout. haidi: treasury yields rise and traders fear the economic

recovery is faltering. >> china's property crackdown alarms analysts -- triggers a rare public debate. we saw a mixed finish with the s&p 500 and the dow losing ground. of course, traders are cautious, given those growth concerns in the delta variant. we saw mega tech gains at a record high. growth being translated to mega tech doing well this month. that is really part of the flight to safe havens. we saw the dollar gaining ground on rising bond yields. we also had wpi losing on the stronger dollars well. take a look at nasdaq china index. chinese adrs at the highest level since late july. we haven't seen any new

revelatory announcements, not to mention tencent plans to buy back more shares, really helping the sentiment across chinese stock. we saw large tech names like tencent rounding out. education related stocks gaining ground almost 12%. it was really about crypto. bitcoin falling to the lowest level in about a month. as i mentioned, el salvador rolling out bitcoin as legal tender. that is faltering selloff. bitcoin listed almost 75% since late july. we saw bluebird galaxy crypto index following 19%. perhaps to do with the poor seasonality. we haven't seen september show positive returns when it comes to bitcoin in the past decade or so. it was really about that return to the office. we are finally back after labor day and the thought was perhaps

after labor day we could see more people back in the office. the delta variant upending those plans. wall street is sort of back. there are largely vaccinated, but fewer than 30% of financial services workers in manhattan have returned to the office. haidi: so much uncertainty. this sort of malaise is perhaps unsurprising the reopening of the london metals exchange trading floor was met with tepid activity. we weren't expecting a big return to the rings, so to say. traders had pleaded for them not to get rid of them in favor for fully electronic pricing but we saw an 85% plunge from prepend mike levels. it does feed into these views. it might be back, but it might not stick around. shery: we are seeing policy makers put efforts in those.

president biden expected to talk about boosting vaccinations. he is expected to announce a six-month -- when it comes to pulling private and public together. australia is talking vaccine passports. haidi: in fact, we have spoken to alan joyce a bunch. he has said in the past he is in favor of some sort of documentation that says if you have not been vaccinated perhaps you won't be allowed to get on a plane. there will be problems with different jurisdictions. take a look at what the rba did. one of the central banks in a very tough position. from the last lockdown, the economy rebounded strongly. but there is so much more uncertainty with delta. we do not know when domestic or international borders are going to open. we do not know when the services sector is going to recover. what we saw was maximum flexibility, a cautious mining back of the bond buying program. still on track, but pushing out

that duration to be revised until probably mid february then mid-november, which was expected. we did see that swing a little bit when it comes to the g10 session. let's look at the rest of the markets. we are watching out for new zealand, as most parts of the country outside of auckland emerging from three week lockdown. we will take a look at how that feeds into what has been a pretty hawkish tone. sidney futures, downside of 3/10 of -- 0.3% follow their weekly. -- week lead. we saw iron or rebounding despite concerns over chinese demand. dk futures trading in chicago, slight at the moment. we saw the nikkei 225 closing at ¥30,000 yesterday. we can see whether, given we are seeing japanese equities venturing into overboard

territory, whether there will be a pullback on profit taking off heavy gains of the past few sessions driven by prospects of new leadership. dollar-yen trading up just 1.10. as mentioned, very rocky start to bitcoin, the biggest test in its history. the rollout of the cryptocurrency in el salvador was met with a price crash and technical glitches. bitcoin has those losses at one point down 17%. this was meant to be a day of celebration. >> there were a lot of related trades that accelerated the decline. first, el salvador's rollout had one big technical glitch with the digital wallet, the downloading of that was delayed and complicated. the country is putting 200 bitcoin atm machines around the country.

it also preloaded wallets with about $30 worth of bitcoin. there has been protests, not all citizens are comfortable, but let's take a look at how this impacted bitcoin, which was down , but you see bitcoin related stocks also took pretty big hits. that related event which helped accelerate the decline was that more than 300,000 bitcoin traders had their accounts liquidated in 24 hours. that is the equivalent of $3.6 billion in crypto that changed hands. again, all of this was coincide. the intraday on bitcoin, remember bitcoin was beginning the day close to the $50,000 mark. it fell all the way before 40 -- below $44,000. a lot of technical traders say that is positive.

meanwhile, el salvador's president says his citizens had the benefit of buying on the dip, putting a positive spin on this. >> what are bitcoin's benefactor saying? >> the billionaire founder and ceo of galaxy digital is not only shrugging off this event, he is more bullish than ever. >> it got long for good reason. in the last eight weeks, there has been a giant realization that could though is not just bitcoin being brought as a hedge against bad monetary and fiscal policy. more importantly, it is the internet of value trends. there is a realization that this is a technology company. no investor wants to miss the next internet. this is the next internet. >> building up excitement here. looking up the year-to-date chart, you can see why many

supporters of bitcoin say it is going to get back to $64,000 peak. they believe this is just a blip on that road. it is important to know that a lot of detractors and supporters watching this el salvador event to see if other countries will adopt. mark mobile record saying he does not believe the adoption of cryptocurrencies will spur other countries to do the same. it should be noted that in el salvador, all merchants if they are able are to now do transactions it bitcoin. -- transactions in bitcoin. from mcdonald's to paying taxes. >> we will watch those developments. let's turn to china. the goal of common prosperity has led to clamp down's and industries including technology, education and insurance and is

showing no signs of abating. the properties sector taking a hit, analysts warning the credit squeeze may harm the economy. for more, let's bring in stephen engle. more than just calling us a vulgar moment for china. >> ever grand is -- but you have seen the domino effect that goes back to xi jinping's common prosperity theme. he has attacked property prices as homes being for living and not speculation. we have seen prices and rent come down, regulatory action of recent days against mortgage approvals and land prices against home rent and there has been a resurgence of nationwide property tax. all of this causing a significant liquidity squeeze on these developers that hire -- are already having trouble with

creditors. billions in liabilities, other developers facing the real possibility of default. defaults were rising to $6.2 billion of high-yield debt defaulted through august. that is about $1.3 billion more than the previous 12 years combined. yesterday's news added more pressure on the sector. when moody's downgraded ever grand to see-a, which implies it is on the verge of impending default. goldman also cut shares. this stock has lost 76%, right down to near its ipo price. many of the dollar bonds are hovering below $.30 to the dollar. shery: the education sector continues to be revitalized. schools teaching subjects,

collecting fees, the government is going to be setting fees, initially this was an existential crisis. is the end result nationalization for the sector? >> it looks that way. xi jinping is latching onto growing concern among families. afterschool tutoring services and the like, tuition has been going up. there has been aggressive advertising trying to convince parents to add to the paranoia that if your child does not get into these schools, if you don't pay tuition your child is going to get left behind. he wants to assuage those fields -- fears and level the playing field. same time, these regulations are killing this once booming sector. the latest news is that china is going to ban tutoring schools

from enrolling new students for now, or even collecting fees until they have officially declared themselves and applied to be a nonprofit agency. that deadline is by the end of the year. further pressure on the sector which looks as though it is going to go under local government control and the national government control on acceptance for their business liability. >> stephen engle with the latest. let's get you to vonnie quinn with headlines. >> u.k. prime minister boris johnson quelled a conservative party rebellion over a $17 billion tax hike. after announcing pensioners and shareholders would also take a hit. -- fund the nhs and social care. all working adults will pay more, breaking johnson's pledge not to raise taxes. >> new conservative government wants to raise taxes.

nor could be in good conscience meet the cost of this plan simply by borrowing the money and imposing the burden on future generations. i will be frank, this new levy will break our manifesto commitment, but a global pandemic was not in our manifesto either. >> house democrats unveiled key components of president biden's $3.5 trillion bill. ways and means committee expecting massive expansion of social safety nets including dental benefits through medicare. it has not revealed its timeline on tax hikes on the wealthy which would pay for spending in the broader bill. johnson & johnson's vaccine cuts the risk of covid infections by half. this according to a trial involving almost half a million workers in south africa. the study shows most of the infections that broke through

were mild, and the majority -- and stopped the majority from dying. the study happened during weeks while south africa was experiencing a third wave. u.n. watchdog says iran's new government is scaling up highly enriched uranium while failing to resume cooperation with international monitors. in its first report, the iaea says charon's uranium stockpile is weapons grade. the apple -- escalation comes as talks to a nuclear deal reconvene later this month. 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. this is bloomberg. >> still ahead, hsbc's decision to stick to tapering. up next, market outlooks.

stay with us. this is bloomberg. ♪

♪ >> payback came early. >> q3 was weaker. >> september is critical. >> labor day was the game plan. >> delta variant. >> new school year. >> companies are starting to push back. >> major corporations have pushed off their full return. >> you have given some ammunition to not taper. >> there was clearly slowdown. >> downgrade more. >> so much talk of a we can market. >> payback has been fast and furious. >> some guest on bloomberg tv talking about global growth

concerns. our next guest says u.s. mobility and confidence indicators have begun to lag. that paints a path to assets outside the u.s. in the fourth quarter. max gokham joins us. it is great to have you back. we have seen this week, goldman sachs downgrading forecasts. the economic outlook diverges from the market outlook especially as you have a less aggressive fed. does that paint a better picture for the markets? max: there may be a fallacy in believing the fed is going to just use -- payroll to decouple from what they said at jackson hole. the fed's mandate right now is carefully landing the jumbo jet of investors. it is not fair to say that they're just going to scale back growth. additionally, we have seen how

delta is causing it to have the highest adjusted number of both cases and deaths relative to other markets. conversely in emerging markets, we are seeing the case counts decline. pair that with the fact that it is the beginning of the school year in the u.s. and most school aged children are going to be unvaccinated and there will be communities that don't have mask mandates. that gives me a lot of concern about broad u.s. assets. >> are you concerned of crypto assets if the fed starts tapering beginning to see tightening in liquidity and given what happens with the crash today? max: the crash today is perhaps a manifestation of investors who were too optimistic about a country like el salvador rapidly changing their local tender. the biggest issue for crypto as we head into year's end is going to be forthcoming regulation

proposals from the treasury and the ftc. there is a good thing about gensler being the one writing that regulation because he actually taught a blockchain class at m.i.t.. at the same time, especially for smaller investors, to start hearing regulation i think to the effect is going to be similar to schoolchildren who hear sirens when they are at a party. they are going to start dispersing and the initial reaction may be scary. although long-term regulation is great for the asset class because it is going to force it to mature and allow more investors to come into crypto. >> when you take a look at the policy winds of change for china, how long term do you have to set your sights for there to be opportunities right now? max: you have to think in years, not months or quarters. the common prosperity initiatives really are going to

most likely result in greater regulation than what we have already seen. as i said last time, there is good -- behind these, but within that intent there is not a lot of care about the market impact. i think we should be very careful in chinese assets, especially adrs, because then we are dealing with u.s. regulators as well. >> when it comes to u.s. regulators, we spoke with the former head of the wto yesterday and he was talking about how there's two compelling contrasting decoupling. one, the u.s. decoupling from china and the other is regulatory issues in china. are we paying enough attention to the u.s. side? max: i think there should be more attention paid to the u.s.. delisting is a very real risk. it is a significant risk. i don't think that is currently being appropriately priced in

because a lot of attention has shifted to the chinese side. which is critical, but not the full picture for u.s. investors. >> max gokham. . joining us from newport beach coming up, delta derailed hopes for normal working life. the latest on what lies ahead. this is bloomberg. ♪

♪ >> the delta variant has upended hopes that life on wall street would return to normal after labor day. let's get more from jenny. we have been waiting for this week. for an entire year and a half we said, after labor day. what is it looking like? >> you are right.

this was the long-awaited date that people said we would be starting our new normal. yeah, they are back. a lot of big u.s. banks have brought back a lot of employees but it is not in the way they expected. folks are in masks, social distancing, it's not the kind of vibe a lot of ceos have been heralding as the day everyone would be back and things would feel more normal. >> does this change the planning aspect of things in terms of office space? how many more institutions are thinking this is the way to go given the uncertainty of variance -- variants? >> the longer we go the harder it gets to bring people back, especially full-time. at the beginning there was hope that everyone would be back five days a week. they walked that back. you hear more ceos saying we are open to the idea having everyone

work from home one or two days a week. you still see wall street saying our in office in person culture is where the magic happens. we want people back in their desks at least some of the time. >> jenny surane there. let's get you a check of other business headlines. phc planning japan's biggest -- in 2018. it has integrated $1.6 billion by reporting shares, most will come from shareholders including matsu a. 6 million will be new. they plan to use proceeds to boost distribution networks and production capacity while paying down borrowers. a -- is selling $50 million in new debt to pay off interest in bonds it sold before the pandemic. we are told -- will be used to pay interest to existing investors.

aircraft lessors are struggling as airlines -- agreements because of weak demand for air travel. coming up, we talk the rba decision on the outlook for australia posse economy.

♪ >> you are watching daybreak australia. the taliban have included the leaders of a u.s. designated terrorist group in a new government to formally mark the group's returned to power after 20 years of war with america. a network leader will serve as acting interior minister, complicating any cooperation with the u.s.. malan muhammad ali was named acting premise or.

myanmar's shadow government declared war against the military regime that sees controls of the country february. in a speech on social media, the president of the unity government called for a revolt in a nationwide uprising, urging armed groups to target assets and forces. myanmar's military downplayed the move, calling it just a threat. president biden toward parts of new jersey and new york to see the destruction caused by hurricane ida. biden pointed the finger at climate change while calling for federal spending on infrastructure to better defend people and property from future storms. at least 50 people were killed in six states and more than 1000 homes damaged. pres. biden: we've got to listen to the scientists and the economists and the national security experts. they all tell us this is code red. the nation and the world are in peril. that is not hyperbole, that is a

fact. >> the philippines will hold off on easing public movement restrictions, keeping current curbs potentially through september 15. manila, which accounts for about one third of the nation's economy will remain under the second toughest restrictions with restaurants only allowing pickup and delivery. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. >> let's get the latest on the pandemic. three quarters of u.s. adults have received at least one dose of a vaccine. that is almost one month after the country hit the 70% threshold set by president biden. let's get details from -- we are expecting president biden to give a strategy on how to deal with delta. what is the latest?

>> yes, we hit a key milestone yesterday, 75% of adults getting at least one dose. that is up from 70% in august, which was later than biden's plan of fourth of july, but there has been acceleration. we have new states to clear mandates, pfizer's vaccine approval, evidence that some people who were hesitant are now on board. the biden administration is hoping to ramp things up. we have a new strategy this week, we don't have any details, biden's press secretary said do not expect new mandates, the administration has said they do not think the national government should. we will be looking to see what they have to get a few of these people who are still hesitant off the ledge. >> do we know what the timeline is in terms of getting adequate data so we can see some sort of recommendation or approval for kids getting vaccinated?

>> still waiting on the timeline for kids. it has been a moving target and there has been requests for the fda to get the pfizer and moderna more studies. hopefully by the end of the year. kids vaccines remain a key issue , and employers going back to work concerned about passing the virus to their kids even if they are vaccinated. they are eagerly awaiting that. >> we have more studies on the johnson & johnson vaccine in south africa. >> this was a big study of about half a million health-care workers in south africa showing that the vaccine prevented about half of infections and was substantially did well in preventing hospitalizations and deaths, which is really what you want to see. i think what a lot of health officials want to promote is that vaccines are not necessarily meant to stop cases,

but severe instances, hospitalizations and deaths. the j&j data is another sign that the vaccines to work -- new work in preventing the worst-case scenarios. >> as intended. our san francisco bureau chief. the australian government will start issuing vaccination signal -- certificates. once 80% is fully vaccinated. paul allen joins us with more. how do these vaccination certificates work? are they the same as the ones you get once you have had both your shots? what we need to show if we want to travel overseas or domestically? >> let's deal with overseas first. the government is looking at having something maybe you would have on your phone, or a piece of paper. work is being done to embed this information into the chip some people's passports. and then -- and then you get

into questions like which countries recognize which shots? the united states recognizes the vaccines approved in the u.s., but also emergency use vaccines that the who has approved such as astrazeneca. that would make a u.s.-australia accord or possible. but then you get into the domestic question. the plan in new south wales is to link the vaccination certificate to a qr code you scan in a shop or cafe. other state apps do not have that function. there is still a lot of work to be done to make these work in practice. >> -- numbers have been trending in new south wales, what can we expect in the next few weeks. >> we've had modeling released that suggests the worst is yet to come. that modeling predicting 700 24 deaths just in western sydney by december and another 600 statewide in new south wales.

the modeling also shows icus coming overwhelmed in november. but there is good news and that is the idea that lockdowns have actually performed their function. the modeling says without lockdowns, there would have been half a million additional cases of covid-19 and the state and almost 5000 more deaths. you contrast that with the number of deaths in the outbreak so far at just 139. the lockdown, while painful, has served its purpose. this modeling doesn't account for what happens when the government relaxes restrictions once the vaccination rate hits the mid-70's. so, whatever angle you are looking at this from, case numbers are going to get worse. >> economists expectations were split when it comes to what the rba would do to navigate uncertainty. in the end, the bank has pushed to -- the buyback program. that should reduce the

flexibility to respond to the economic fallout from the delta variant. let's bring in hsbc's paul ore bloxham who joints -- paul bloxham who joins us from sydney. i read this as the rba trying to aim for maximum flexibility. a dovish taper pushing back the duration but still signaling normalization is the pathway. how does that reduce their ability to be able to react more quickly? >> instead of moving to not tapering from $5 billion to $4 might, and leaving open the option to changing their minds around november, they have made a commitment to not do anything to keep buying bonds until the middle of february. so, that is a commitment, a longer-term commitment, therefore they are able to adjust, or the fed saying they are not able to adjust soon or in the coming months. at the same time, the rba stated

today the board considers preparing to adjust their bond purchase program on economic positions that look vastly different than expected over the next few months. it's adjustments further out. in some ways it does reduce the flexibility in terms of what they can do in the short term, changes in economic and health conditions. there is a lot of uncertainty about how -- can attract -- and reopen. >> the difficulty of balancing that uncertainty with the knowledge the last lockdown saw a very robust recovery in the economy. does remodeling suggest that maybe this time it is different given there is no clear ability at this point to return to covid zero? >> there is a very big

difference between now and what we saw last time. australia has recognized as having a strong v shaped rebound from the initial shock of covid, but that was last year. [indiscernible] this time around, reopening is going to have higher vaccination rates to protect people but it will still involve cases out there and if case numbers rise, it seems likely suppression measures will still be used. that is really just talking about new south wales and victoria, which is committed to this idea. all other states and territories are so focused on a zero-tolerance illumination strategy. that adjustment to shifting their tactics hasn't happened yet. all of that will slow and make the recovery more gradual than last time. >> what does that mean to

getting back to pre-delta? >> the rba, which they started yesterday, they think they will be back on the pre-delta path by the second half of 2022. i think it may take longer for the economy to adjust to living with the virus. last time we had this big spring back because we got numbers down to zero. this time around, we thought we had all this adjustment to living to the virus, but that is going to weigh on the pathway to recovery. >> continuing to taper on a longer horizon, not raising cash rates, what is the net effect of these qe decisions? >> it determines exactly what the effects was relative to -- it is dependent on what they were planning to do a november trade whether they were planning to reduce or not. the broader message is the rba is dovish in the scheme of things. if you tip them against the

global backdrop, the rba still not lifting the cash -- which is their big lever. that is still a very dovish message unaffected qe is still continuing, albeit tapered. >> paul bloxham, hsbc chief economist, global commodities. thank you. up next, we hear from mark mobius who says he disagrees with george soros about investing in china. this is bloomberg. ♪

♪ time for -- >> several views on the outlook on u.s. sovereigns. inflation concerns and a less hawkish that could push the curve steeper. the bank continues to see yields on the upside for the terminal rate. >> attorneys in china just raised believe chinese adrs may have hit bottom in the interim. in the latest -- growing similarities in the way south korea government it and xi jinping coexist for the private sector pointing out how the biggest firms in both countries

are earmarking capitals for societal goods. they know china etf's have received strong interest in the past week. we will get more from sean dirty later. looking at another angle to this call, this gtp chart showing net buying and mainland stock by hong kong funds has been up for 12 days in a row. a veteran emerging markets investor may agree with that more optimistic call on china. mark mobius disagreeing with one of america's earliest china investors george soros over the country's invest ability. mobius saying the recent regulatory tightening only makes it safer for investors. >> i am positive china has been -- because it means they are moving more towards fair regulation, trying to create a level playing field. in some ways, these misses by

china are making it safer for investors including foreign investors. i don't see where george soros is coming from in this regard. >> you don't think it's an issue of national security of national security if china starts cracking down to a point any capital investment in china is estate company? >> the bottom line is this, if china wants to become an international destination for investments -- because they do need more money and a lot of people think china has all this money, they have no problem growing -- in fact, they need investments. they want foreign investments. they are going to try to encourage people to come into invest in their companies. under the same conditions that local companies have to operate. there is also the problem of data, protection of data and they have taken some measures already in the u.s. has measures

in place but at the end of the day, there is going to be a much more exciting market in china. it is a large market. it is growing. we certainly want to be there. that presents opportunities. i think we are in a situation where -- becomes more important. >> how do you want to take advantage of this? how do you play china and do you think there is more regulatory crackdown to come? >> the interesting is that we are focusing on small and medium-sized companies globally anyway but we can crackdown on the big boys in china so to speak. the medium and smaller companies are in a position because there's going to be a more level playing field. i think there's lots of opportunities in the medium and small size companies. interestingly, xi jinping has

vowed to open a market in beijing for medium to small sized companies which is going to be very positive. >> mobius -- mark mobius speaking to francine lacqua. we continue to talk about the common prosperity drive. it is triggering debate in china. you don't hear a great deal of social media or even verbal debate about policy in china. quite often we see a lot of this conversation started on social media channels, then quickly it comes under censorship wraps. this has been interesting. it has got to the heart of what a lot of people in chinese society have been concerned about for a long time, which is really part of what has inspired the central government to do this, to try and address this gap between the haves and have-nots from things like clamping down on education companies which has driven not

just a divide when it comes to competitiveness but has contributed to a lot of mental health issues among students and teachers in china's as well. >> you see that divide. you have -- talking about this profound revolution happening in china while you have global times editor-in-chief talking about the gradual social process , rather than a sweeping campaign that would get many people discarded from policymaking like tech companies and so forth. not surprising this is leading to foreign investors being confused about what is happening. we heard from mobius being a little more optimistic about china, but then you get george soros saying those investments in china or a tragic mistake. we have seen investments coming from goldman sachs and that has been the mainstream view where the thought is the benefits of investing in china outweigh the risks.

i think this debate will continue for the time being. we will keep you updated on what everybody thinks where china is headed. meantime, tune into bloomberg radio to hear more and get in-depth analysis from the daybreak team broadcasting live from hong kong. listen via the app or bloombergradio.com. plenty more ahead. stay with us. ♪

>> we have seen aluminum falling from the highest in a decade. we had a stronger u.s. dollar, but after it touched the highest level since 2011 on monday given the turmoil in guinea and risks of mining destructions. parasailing -- seeing volatility in iron ore, spiking since 2016. demand because of out curves but also headed toward a strong construction period in china supporting prices which gains around the previous session. soybeans and corn. this key measure plunging to a seven year low. hurricane ida hurting production of corn -- hurting production. corn also plunging given crop conditions may have improved.

take a look at crypto assets. we are seeing a broad rebound happening. bitcoin, not a lot, but above $46,000 after it fell to its lowest in a month. we get the el salvador rollout of bitcoin as lingle -- legal tender, triggering the biggest break in the rebound. lifting bitcoin almost 75% since late july. bloomberg galaxy could though index gaining after falling as much as 19% at one point. haidi: in an exclusive interview , the billionaire bitcoin investor tells us the plunge in the token stems just from inventors getting -- investors getting too excited. >> there is a big selloff. we have to remember that crypto is still a retail dominated ecosystem. we had institutions move-in by the day. that is creating a lot of excitement. there's a lot of retail money, a lot of leverage, $4 billion in

liquidations that happened in a short period of time. that is mostly leveraged offshore. the market got too long. it got long for good reason. i think in the last eight weeks, there has been a giant realization that crypto is not just bitcoin being bought as a hedge against bad monetary and fiscal policy, but maybe more importantly it is web 3.0, the internet of value transfer. we see companies like visa making digital goods is a big part of their future. walmart and amazon, the two biggest retailers in the world putting up crypto experts. there is a realization that this is a technology fund. no investor wants to miss the next internet.

solana, a new level 1 for most institutions, i think we just got too excited, a little air popped out of the balloon. romaine: i am curious as to what role, if any, governments will have. the el salvador approach was much more straight transactional and we have seen some concerns as this is gravitating toward a transactional model for bitcoin another crypto assets. with -- if other governments decide to get in, what role would they play? >> there are two different sides. governments are going to be very protective of their national currencies. their ability to tax and print currencies is tantamount to existing.

i think it will be ok with payments, you will see the rise and -- [indiscernible] i think things like bitcoin which in the west are really being used to store value. people aren't using them for transactional purposes. what is unique and el salvador is 20% of their gdp comes from minerals. you can see lots of those remittances. people sending bitcoin back across oceans from the u.s. to el salvador and the locals either -- bitcoin because they are worried about the dollar, or are converting it, then spending it in the local economy. they are unique in that respect. we will see. maybe it gets used as a transactional currency, i never thought it would be.

why would you spend something that is going to keep going higher? >> coming up, we talked markets and what to expect from japan's final gdp figures. this is bloomberg. ♪

and there you have it— -woah. wireless on the most reliable network nationwide. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. (announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling. (announcer) do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

>> good morning. i'm haidi stroud-watts. we are counting down to the major market open. >> welcome to daybreak asia. asian stocks set for a cautious start after wall street dipped on concerns the economic recovery may have peaked. el salvador's crypto rollout has a rocky start. the president says he used the opportunity to buy the dip.