haidi: good morning, welcome to "daybreak: australia." i'm haidi stroud-watts in sydney. sophie: i'm sophie kamaruddin in hong kong. shery: good evening from new york, i'm shery ahn. the top stories. u.s. stocks did as wall street warns a relentless run-up in american equities may be set to falter. haidi: beijing summoned gaming

companies, including tencent. a deepening labor crisis in australia's agricultural sector, industry groups fear -- season. u.s. futures under a little bit of pressure after the s&p 500 saw its first three-day fall in nearly two months. we have analysts from morgan stanley turning cautious about equities. not to mention bloomberg saying we could see some technical signals pointing to a downturn. whether it is momentum or volatility, the institutional sentiment can be overheated. valuations a bit more cautious with the nasdaq 100 seeing the biggest drop in about two weeks. wti crude right now rebounding in the asian session. but the extend in games after it rose for the first time in three months in new york. hurricane ida still affecting

the u.s. -- production in the u.s.. mexico is still off-line. take a look at the big asian movers in the new york session. a worse day in about a week. korean lawmakers warning internet giants about monopoly practices. when we are seeing anxiety over the party focusing on fairness issues ahead of next year's presidential election. not to mention jitters around china's crackdown on. chinese tech companies. . that has all been felt across markets broadly. chinese abr's were down. gaming companies in china had been summoned by chinese regulators. ne-yo lost ground, about 6%. wars day in three weeks after the biggest fundraising plan by a chinese firm since bibi. down 2.5 percent. offering 11 million shares and

2.5 billion dollars of convertible bonds. the broader s&p 500, there could be some poor seasonality felt. in september on average, we have seen losses of about .8% since 2001. given all of this, we have seen investors have turned more pessimistic about u.s. stocks. morgan stanley cutting them to underweight. citigroup also warning we could see bullish positions, having a large impact when it comes to any small correction. haidi: a lot of this is down to if investors believe when they say invention area -- inflationary pressures. we did see the downshift from early july to august in activity. a lot of it was due to the impact of the delta variant. hospitality, dining out, travel, and the like. they talk about the inflationary

pressures coming from the fact it is a downside in economic activity, a downshift in activity, not a result of lack of demand, but supply constraint. we know it is a recipe for inflationary pressure to come. shery: talk about the constraints, we have seen the scrutiny in china continue being felt across markets. and i know every other day, we talk about evergrande, bonds falling to record lows. but we are hearing news they are suspending low interest payments. stitch moving to cut ratings. we are watching them closely as we head toward the opening in china, as well. haidi: like every other day, or every day, we will ask the question whether there is a risk or what contagion we see in that space. let's look at how we are setting up with the session. asian stocks are set to widen their losses. what do you think? sophie: ahead of the settlements, it looks like

stocks in japan are likely to join the regional downturn after the index capped its best winning streak since november. that is an eight a day rally, putting the index within reach of his 30 year high. topping that even, but after the rally, credit suisse cutting japanese equities. later on thursday afternoon, we have a policy decision from malaysia. the key rate likely to be kept at a record low yet again, but should the economic outlook improved, they are penciling in the start of policy tightening next may, with rate hikes seen through 2022. pulling up the board ahead of chinese inflation data, the offshore yuan holding around the 100 day moving average. jp morgan sees the dollar driving remedy moves in the near term. you see them moving to 60 by year end. shery: let's go deeper into that

survey. u.s. economic growth slowed slightly to a moderate pace in early july through august. the delta variant was the main culprit. while businesses in most districts remained optimistic, labor shortages can continue to be a challenge across regions. let's get more from the markets reporter. what are markets taking away from this anecdotal survey? >> thanks for having me. the market things it confirms what -- the market thinks it confirms what we have known for a while, the delta variant taking some momentum, but not enough to make a significant change. at the same time, inflation pressure from the supply disruption continues to be reversed. overall, little change for the fed timeline to take it as bond purchases. the new york fed president said it would be proper for the u.s.

and china to begin tightening this year. so overall, the monetary policy -- haidi: what about the inflation outlook in china? do we expect to see pressures continuing to ease, particularly on the consumer front? >> there remains a big wedge between ppi and the cpi. the economyh the increase on ppi. on the cpi side, inflation will make it expected to be 1%. a big gap between the ppi and cpi. it means downstream industry will absolve a lot of pressure on these commodity producers. it will squeeze the market with all of these producers. in terms of monetary policy, it looks like the pboc signal the other day, that they could impulse, a chance for immediate

-- and indeed, we see bond yields bottoming for the last couple of days. haidi: ye xie there. speaking of destruction as a result of covid, the agriculture sector is facing a labor crisis, internal border restrictions threatening to derail -- the winter crops. it is not just international borders. we don't have any seasonal workers coming from overseas. also with queens land, wa shut off to the rest of the country. what is coming on when it comes to these farms? >> the national farmers federation of not holding back, calling it a disaster situation and state-ism gone mad because of the internal border situation, where queens land, western australia, locked off as we have new south wales and victoria planning to reopen and live with the virus. we are looking at a forecast of 54.8 million tons of

wintergreen's harvest, one third above the 10 year average. a good harvest coming down the pipe. also forecast shortage of 24,000 workers who are needed to make the harvest happen. this is the concern. the federal government is aware of the problem. it is looking at offering agricultural visas over the next four years. there is no information on which countries might be involved in that program or how it will affect international arrivals. in the meantime, the anecdotal evidence of workers domestically who have all of the correct permits and are getting turned away at the queens land border. this is a situation that will need swift action to remedy. shery: australia's biggest city making plans to reopen, despite rising case numbers. what do we expect? >> there will be a big announcement today for new south wales. the plan to give vaccination rates to the point where daily

case numbers don't matter so much. an announcement made on the roadmap to reopening october the 18th has been nominated as the date the restrictions will be removed as the vaccination rates hit 70%. it is not exactly freedom day, but it would mean pubs, cafes, restaurants, gyms, hairdressers will be allowed to reopen with some limitations and restrictions in place. but more restrictions will come off of it as the vaccination rate rises and it goes to 80%. it will be trialed first in areas with low case numbers and high vaccination rates. the states also very keen to point out these freedoms are not going to be extended to the unvaccinated. some good news for the economy, at least. new south wales accounts for about one third of the country's gdp. getting the state working again will be a boost. shery: paul allen in sydney. we have a live event going on right now.

the dallas fed president making comments in an online event that he sees near term slowing in the economy, especially in the third quarter, and a headline pce of 4% in 2021 will be reached, and 2.6% in 2022. he would not be surprised if the september jobs growth is slower. we got the august numbers growing. he also sees full-year growth at percent, instead of 6.5%, as he had earlier expected in 2021. he doesn't ex a long flow. he expects fourth-quarter improvement. bloomberg subscribers can continue watching on live go. you will find a big diary entry later today and this week, and events you may have missed earlier. let's get over to vonnie quin with the first word headlines. vonnie: goldman sachs has hired a former mckinsey head to co-run

its asian-pacific operations. he becomes the most prominent outside hire for asia. this as expansion plans, especially in china. mckinsey management voted to remove him earlier this year after a single term as a top executive. scandals over there past client work. the head of the whc is calling for a hold on offering booster shots through the end of the year to make more shots available for poorer nations. the who director says the focus needs to be on vaccinating the most at risk around the world. he complains of too little action in achieving vaccine equity, saying less than 15% of the doses promised by wealthy nations has materialized. coinbase's ceo blasted the sec for what he called really sketchy behavior. this after the company received a warning regulators plan to sue. the crypto exchange says the sec

has an issue with a new product it is launching, which allows consumers to earn interest on crypto holdings. the ceo says the regulator will create an unfair market if it tries to shut down the lending product. cathay pacific says it fired what it calls a small number of aircrew who chose not to get covid vaccinations and did not provide proof of a medical exemption. in a statement, the carrier said keeping customers, communities, and families safe is of utmost importance. the carrier had warned in june crew needed to be inoculated by the end of august or face employment review. lawyers for theranos founder elizabeth holmes said she isn't the villain prosecutors made her out to be. this as the trial begins in silicon valley. she faces 10 counts of wire fraud and 2 counts of conspiracy to commit fraud, facing claims of blood technology at her failed start up.

she -- after she and a former executive were indicted. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin, this is bloomberg. haidi: chinese tech abr's slump after regulators some in gaming companies, including tencent. we get more details ahead. coming up next, investors getting cautious when it comes to u.s. market valuations given the risks and bank stimulus. we take a look at what is next with anna han. this is bloomberg. ♪

haidi: morgan stanley and

citigroup cautioning investors about the equity outlook. our next guest has the year end target for the s&p 500 of 48.20 5, 6 .5% from where we are now. she says it will not be a smooth ride. anna han joins us. great to have you back. what will drive equities higher from here? >> if i break it down, i think three main things will drive the rally to the end of the year. consumer, corporate, and credit. if i look at them, i see the consumer is healthy. you saw the job openings number versus those unemployed. when you get people going back to work, it will help ease the supply constraint we have seen. that in it self with healthy demand will pair off and help corporate earnings. shery: you say it will not be a smooth ride. how would you whether the uncertainty unto you get there? >> we have recommended to clients to have some low volatility exposure.

that helps give you a little bit of a defensive take. when yields struggled to rise, and you have pullbacks like the last couple of days, it helps you get through them. especially the uncertainty and arriving concerned about when we get tapering. haidi: the group paints a bit of a different picture of a downshift in economic activity as a result. not lack of demand, but the supply-side constraints. doesn't it tell you there is a strong risk inflationary pressures will not be transitory and the assumption the fed will stay dovish is perhaps shaky? >> it is definitely a concern. you bring up a great point. if the inflation measures persist, even if the fed doesn't move up their calendar, if the market believes it will become a self-fulfilling prophecy, you see them helping move the markets. we are concerned about it.

we are thinking about it. it has not brought up the timeline for us to change our view. i think tapering will be announced at the end of this year, beginning of next year. it will only be the beginning. one more thing to remember is if we begin tapering, things are good. the price pressures are being passed along to the consumer. with demand being strong, it will still go over rather smoothly. haidi: with upgraded media and entertainment, you have downgraded software. tell us about those technologies. >> software, when we looked at valuations, it has been growth be abundant in the market, why pay so much for these valuations? that is what we see in software. almost as expensive as it was in the late dot-com bubble. in the latest environment, you can find better growth elsewhere. where we have pivoted is the

media and entertainment sector. valuations are more reasonable. the expectation, not just for this year, but next year, as well, look a lot more attractive for us. that is what we suggest. shery: how attractive are overseas markets? i hear more optimism about say japan, not to mention europe, as well. >> those are areas we have considered. more cyclical economies, depending on what phase they are on the recovery, could be more attractive. for now, we have built strong opportunities. in particular, the way the variant has been handling at attacking other economies, we have more confidence in the u.s. for now. but one thing we have, and it has made headlines, it is china. exposure to china, we are questioning whether it is worth the risk of having that exposure, given the regulatory framework shaping up. shery: when it comes to china

exposure, you are exposed when you go into emerging markets, given the heavy waiting in emerging market indices. what do you make of that? >> like you say, it is almost unavoidable. even in the u.s., we have the second or third degree exposure to china. in today's economy, there is no way not to be exposed to each other. i think that risk, especially the rising uncertainty about the regulatory framework and how it will shape up, the timing of it is because of something not so easily clarified in the near term. for us, it is a risk to investors. but you have a decision, either you get rid of the overweight completely, or ride it out. what they will choose, we are not sure. but we are sure where the cash goes will be of interest in the next few months. haidi: anna han. don't miss out on some of our guests. we will speak with the

asia-pacific ceo about how the shippers dealing with these global supply constraints and disruptions. the pakistan stock exchange is also on bloomberg markets later, talking about the downgrade from its rankings. this is bloomberg. ♪

shery: bitcoin and either rebounding in the asian session after falling for a second consecutive session. bitcoin was -- by el salvador's tough implementation as legal tender. perhaps hurt a little bit by poor seasonality in the month of september. we also had news on coinbase global. they saw as much as 4.9 at one point, after the sec warned of

the company of launching a product to allow consumers to earn interest on crypto holdings. the coinbase ceo accusing them of sketchy behavior. any time we have had drops for these crypto assets, or these meme stocks, we have had retail traders crowding those assets sort of the buy the dip momentum we have seen. in your research saying it might help risk-adjusted returns, but not really help accumulating wealth over time. haidi: it is the only answer, it seems. bitcoin taking a tumble, buy the dip. gamestop, all of these reddit names are seeing a selloff, buy the dip. we are may be starting to see some of that fatigue. but you understand the psychology of it. you see so much money being made, valuations having gone up so much, it is perhaps understandable people have that

moment. they don't want to be left out of that momentum. relative to where price has been. that dip is being seen as good value. we will continue watching that story. gamestop one of the stocks that took a dip after the quarterly loss, much worse in most investments. let's get a check of the latest business flash headlines. ever grande's bonds falling after it plans to submit payment from two. evergrande said it would not sign up september 21st and asked for an extension plan. developers credit rating into junk territory. bytedance is said to be in talks for $4 billion crackdown for the -- over the timing of the ipo. sources say they are in talks with several lenders for a syndicated loan. in july, bloomberg reported

bytedance was working to ensure ahead of a listing. take a look ahead when it comes to the day that lies in store for australia and new zealand. in new zealand, data for the second quarter due out a little bit later this hour. we are also expressing -- expecting aussie job numbers as growth in sydney and victoria, certainly in sydney, going into the 11th week of lockdown. investors will be reacting to the first half results. gold. a lot more to come on "daybreak: australia." the countdown to the start of trading. asian stocks looking lackluster. looking like we will extend the losses from wednesday. stocks really aimed to drop as we saw the rise in treasuries. the fed base forecasting more grasp over the strength of the u.s. economic recovery, the

transitory nature of the inflation expectation, and feeding into concerns about what the fed could do with its taper schedule. the dollar advancing. futures for japan, australia, and hong kong trading on the lower side. a lot more to come. this is bloomberg. ♪

vonnie:. japan's government has a pair they told the ruling coalition will extend the coronavirus state of emergency until september 30. emergency covers tokyo, osaka and 17 other prefectures. three other regions will be downgraded to last strict measures. covax has got its supply forecast. it says adele expect to have 1.4

billion doses by years end. that is half a billion fewer than june. covax says the vaccine rollout was hindered because some manufacturers and companies finalized bilateral deals. also faces challenges in scaling up production. the fed's largest internal critics -- an active investors in the sector. initial disclosures of eric rosengren lists four real estate investment -- multiple purchases and sales. the boston fed says the trades were consistent with the systems strong ethics rules. new york has banned the sales of gas powered trucks starting in 2035, joining california in the most aggressive plan to cut greenhouse gas emissions. all new passenger vehicles sold

or leased to the state will have to be zero omissions. the bill also culture medium in heaven the -- heavy duty vehicles to comply by 2025. the gaetz is taking control of the four season. the travel sector will rebound due to a pandemic induced swap could -- >> cascade will pay $2.2 billion in cash to boost its share to 71% from 48%. 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. >> chinese adrs tumbled in the year accession after chinese video game makers were summoned by regulators. ne-yo unveils the biggest u.s. fundraising plan. for the stories, let's bring in

stephen engle. let's start with online gaming. what happened? >> no one likes to be summoned by regulators, especially in this sensitive time of regulation crackdown. we saw in november, alibaba was summoned as well as those other 30 plus tax companies this year. summoned and -- we don't have the details, but probably a ton lashing and marching orders to rectify certain behaviors. they gaming companies have been under regulatory pressure to crack down or limit potential addiction and obsession by minors and they have limited gaming time to three hours a week on fridays, saturdays and sundays as part of a widespread crackdown. what we know from this news agency, gaming companies were summoned and regulators say

there is a need to strictly regulate game promotion, celebrity endorsements and live broadcasts to avoid minors from gaming obsession. -- reporting tencent has put out a statement, or commented saying they will fully comply with these regulations. growth in gaming revenue at tencent was the lowest in a couple of years. they are doing self-monitoring and self-control for limiting game time for minors, but the regulators are coming down hard. that is why stocks were significantly lower overnight after what had been a rally. >> significant pullback. -- the biggest fundraising plan in the u.s., is this the same from dede global? >> this is interesting. they're going to raise up to $2 billion at the market offering. it is an interesting time

because many of these companies, including their rivals are coming back to hong kong as well and there have been plants that neil would come back to hong kong. why hit $2 billion in new york? deutsche bank analyst saying we think it could reflect further delays in hong kong listing process. they are saying they are going to boost cash holdings amid these supply chain disruptions. we all know the auto industry and dv companies are having trouble procuring enough semiconductors for their cars. this could be a cash crunch ahead of a potential delay in hong kong listing. we have to dig into the story further, but one that will likely be going forward because this was a pity -- pretty big drop overnight. >> stephen engle with the latest.

let's get more context when it comes to china's crackdowns, particularly pertaining to tech giants, available online at the bloomberg technology channel on youtube. the former australian prime minister says the -- crackdowns -- xi jinping ambition to maintain power. he served as prime minister in one of the lowest points with u.s.-australia relations. he spoke with andrew brown. >> this tech sector has different reputations in china. it is obviously the epicenter of chinese economy, but the epicenter of what is called in china, 996. work nine hours a day -- 12 hours a day from 9:00 until 9:00, six days a week. frankly, that delivers a lousy life. i don't have secure income. the guys at the top get all the

money. i'm working like a dog and i can't have a decent family life, get married and have kids. what xi jinping is doing to secure his reappointment long-term is creating a new constituency, a populist constituency out there in the chinese community saying, i am on your side and i want to does -- i want to redistribute some wealth. can he deliver? open question, but his vulnerability going into the -- above anything else is, does the aton -- does the economy begin to falter? that is the vulnerability. i don't think it is going to become evident before november of next year. it could become more evident following that if these moves to the left take hold and private-sector confidence, innovation and productivity begin to fall. that is the $6,000 question for

the duration of the 20 20's. >> the bloomberg new economy forum. let's turn to a -- goldman sachs has hired mckenzie had to asia pacific operations in the bank's most prominent outside hire ever. this as goldman moves beyond international probes for its role in the looting of an investment fund. let's bring in u.s. finance editor sally. why was this move surprising? >> there was a very interesting dynamic behind this. let's look at them. first, the man himself, the top guy at mckenzie before he was ousted by senior managing partners after one term. why was that? it appears to be his handling of effort -- slew of scandals in

the u.s. opioid crisis. and -- have some interesting background. his own asia business took a bit of a bruising after a scandal with probes into the looting of malaysia's investment fund. here we have this scandal with goldman that will have to pay more than $5 billion to resolve. it is now hiring the guy that was voted out related to handling scandals. question number one, goldman is apparently willing to overlook these accountability issues as it wants to lean on leader to dry growth. >> how important is them to goldman? >> this shows that it is very

important. like many wall street major banks, it really wants to grow in the country. gorman's ceo touted leaders global connections. his clients across the region and his experience. goldman recently won approval from regulators of wealth management of one of the biggest chinese banks. chinese growth is looking like a tricky path. tensions between the u.s. and china have only ratcheted up. we have seen a longer -- a lot stronger rhetoric coming from george soros, who has called his investment in the country a tragic mistake. the u.s. has warned china is an unreliable place for america to do business. this just seems to be a difficult path. in some respects, goldman, in hiring somebody who has had past experience with contact --

complex situations, that this perhaps -- some of the -- >> u.s. finance officer sally bakewell. you can get more on your terminals and it is also available on the bloomberg mobile anywhere app. you can get news on the industries and assets that matter to you. this is bloomberg. ♪

>> they are cutting growth forecasts for china with the second half slowdown to be more pronounced. i polluting industries. tennis growth this year is now seeing a -- from 9.1%. flipping on the board, economists asking what could derail new zealand's policy tightening? covid -- still seems to be in the bag, but if confidence doesn't take a hit will be see deflationary coming through? the ocr not meeting the central bank's projection of percent this cycle.

the anticipated lower neutral interest rates seems to be a factor. haidi: of course with the meeting this week it was closely watched for tapering plans and the impact of delta on those plans. our next guest says when it comes to movements on the dollar it will be the outlook when it comes to fed tapering playbook as concerns of the global economic impact of delta will continue to drive. he joins us from sydney. good to have you with us. how much is the move we have seen has been due to fed expectations as opposed to growth expectations at home? >> if you just track the index, it has basically moved in mirror-image. moves we have seen in the -- dollar have been a reflection of changes in the ust. it is more about what is happening globally and we think

the fact that -- is more likely to delay its taper announcement until later this year. that has changed the balance of risks facing the australian dollar. previously be rethinking balance of risk for purely to the downside. now review those has largely more balanced because -- the tapering is at risk to the aussie dollar. haidi: how much risk is there? you take a look at what the fed book seems to allude to come of this concern that perhaps if supply-side constraints continue we will see something more permanent than transitory inflation. >> the rift is growing that we don't see a pullbonflation like. especially if you look at great prices, we can bet it is going to seed into more pronounced inflation in the medium-term.

that is -- tightening the fit funds rate not 2023. -- suggesting, and that is just driven by their inflation outlook, but keep in mind the beige book dig did show -- [indiscernible] that fear is driving the downside risks for the u.s. economy, but more broadly the global economy as the delta strayed goes around the world. >> we are expecting inflation numbers out of china. what numbers are you watching out for in china to gauge where the yuan is going? >> we are looking toward next week and we get hard data. retail sales -- we are expecting that will pick up the weakness we are seeing in the already released august pmi's and if

that does just reflect that china's economic momentum is slowing, that is a weight on the aussie dollar but can also support ust as well. we haven't seen the pickup and local government bond issuance we were expecting. that is another headwind to chinese economic growth. >> we have seen the yuan's resilience. showing how against its trading partners it has topped 2016 levels, passing 99 for the first time in years. which bears are you focusing on when looking at broader economic pictures in the country? >> be expect the u.s. d ken prewitt -- if you look at

chinese economic outperformance was the main story over 2020. you have a relatively high chinese interest rates, the opening up of --, all of those are supporting --. at the same time, we are expecting the ust to ease over 2022 to become a broad recovery. -- falling further towards the 6.25 by the end of next year. >> how much will the crackdown in all different sectors in china affect the international drive by beijing of the yuan? >> that is a big risk. something we are watching closely because the regulatory crackdown in general is not conducive to investment. for us, we are looking closely from an australian perspective,

that has implications for commodity prices and for the aussie dollar. if we don't see local government bond issuance pickup and if we see more uncertainty around the regulatory outlook, that does suggested is going to be a bit of a headwind for c and h headwind for the aussie dollar. >> great to have you with us. international economists joining us from sydney. let's head to new zealand where we are getting manufacturing numbers. the seasonally adjusted quarter on quarter number for the second quarter seeing arise. actually, a contraction of 1/10 of 1%. we are seeing that falling from the prior 2.1%. manufacturing volume on the second quarter seeing a gain of three point 9%. that is accelerating from the --

end in the third quarter is where we see the three-week lockdown. if you can still call that a lockdown, from which most of the country has emerged. this comes as the -- did signaled a hike in the fourth quarter would be coming in august after putting an end to its qe program in july. we are expecting potentially the impact of delta to still play some sort of role when it comes to new zealand's path going forward. coming up, the highly anticipated -- is underway. we have an update from the courthouse. >> broadcasting live from our studio in hong kong where you can listen and live on bloombergradio.com. more ahead. this is bloomberg. ♪

>> -- finally having her day in court. her lawyer say she is not the villain prosecutors have been depicting. joining us from the latest is west coast reporter ed ludlow. what was the prosecution focused

a1? -- focus day one? >> they said this was a case about fraud. a founder and executive who lied and cheated to raise money from investors. they set out two scenarios where -- had misled investors for cattle raising. also that they had misled and deceived customers into using the blood testing service. they said they had documentary evidence in the form of emails and conversations that had been had that would have made it clear that she would have known the technology they were working on had issues but also issues it was causing for those customers. the very examples given by customers who had tests through the system had come up with false readings of pregnancy, false readings of hiv. the prosecutor -- to the prosecutor, this was clear-cut.

>> what about the defense? >> this was the most dynamic and interesting we were watching. they leaned on the idea that elizabeth holmes genuinely believed in the technology and she was working towards a clear goal, or a vision of lowering the cost of lab tests. ultimately the company failed and they were not able to achieve their gold -- goal and prosecutors were using that to vilify homes, but failing a business does not amount to a crime. they did not allege that holme'' one-time romantic partner had had an abusive or psychologically abusive relationship where he had been in control. there were hints

the case and the defense would argue she was not capable of forming intend to mislead investors because she was in the control of someone else. he denied those allegations, but they did hint it would be featured later in the trial, that they would bring up a side of his personality people might know. but the jury would have to wait to hear about that and form their own opinion based on what they had heard. >> this trial has a long way to go. no doubt a lot of those twists and turns, it has already been extraordinary. what are we expecting in terms of timeline and how this is going to play out? >> this could run all the way through to december. both the prosecution and the defense have a long list of witnesses. it will be interesting because pfizer and walgreens, some of the companies they were interacting with and prosecutors alleged were misled could be called. the biggest question is whether elizabeth holmes herself would take the stand. legal analysts said it was interesting because if the defense put her on the stand, she would be subject to questioning on the documentary

evidence to put in front of her the idea that she did know there were problems with the technology. the prosecutors site the idea she had a relationship with her brother she hired into the company who flagged to her issues. that will be interesting if we hear from her or not. but the media interest here is so intense and it has been an awfully long day with many weeks to go. >> ed ludlow did tv west coast reporter. he will give us an update later. a quick check now at headlines, a possible departure from softbank, the sole senior managing partner is discussing leaving the firm. he has been involved in more than three dozen -- and there are only 3 -- including -- >> easyjet planning to raise 1.4 billion dollars to help it

compete during the travel rebound. that plan could come this week. easyjet has already raised 7.5 billion dollars in liquidity since the pandemic started. that is it fair daybreak australia. daybreak: asia is next. this is bloomberg. ♪

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♪ >> hello and welcome to daybreak asia. >> i am in hong kong. we are counting down to me -- asia's major market open. shery: top story this hour, asian stocks set to slip as investors fight over post-pandemic growth outlook. china said to be the center of market attention.