>> the growth rate in cannabis remains very strong even after we were worried that there might be competition. so far, the cannabis sector seems to be fully operational. ♪ >> a very good morning welcome today. >> we are counting down to asia's major market open. >> good morning from new york. the top stories this hour. australia defends scrapping its french submarine deal. president biden now said to hold talks with the leaders of both countries. >> u.s. treasury secretary

renewing her call for a higher u.s. debt ceiling, warning of economic catastrophe if congress fails to act. >> and the moment of truth approaches for china. the properties facing a key -- as bond and loan deadlines loom. we are seeing u.s. futures under a little bit of pressure after the s&p 500 fell below the 50 day moving average which was already a key support level. in fact, we also have the nasdaq 100 seeing it against drop since may. global equities also seeing a second weekly drop. we had wti extending losses at the moment after losing rounds in the friday session. we had a stronger dollar, but also russia plans to boost oil sales, pressuring the market. of course, it is the relative. about 3% of this past week already, we continue to see

concerns with commodities prices superhigh. that will be felt when we do have the meeting. this chart on the bloomberg showing how many rate hikes have been priced in. 17 basis points for next year, which would be under wonderful hike. -- under one full hike. the fed expected to discuss a taper plan in this meeting, but that will be very important for next year. when it comes to the future of the fed, heidi, it is going to be about what the treasury yields will do. that could be the make or break week because bond yields have now shown signs of widening, 10 year yields are testing the top of their range since early july and we continue to anticipate my the market that they will hint in a september decision at a plan to curb bond buying. back in be one of the last

respected triggers for bond yields to break out. >> and you know what this debate of the debt ceiling, larry summers actually said that he would hold treasuries. this is what he thinks about the whole raising that deal and political debate. >> you are going to see a lot of stupid posturing and games of chicken in washington, but i have every confidence that this will be worked out. >> the u.s. house expected to say -- right, the u.s. house expected to vote on the debt ceiling and raising that, but really calling that stupid posturing, larry summers. the even general assembly, finally that week is september. this year, it will be face-to-face, but of course, very limited when it comes to the delegation. the conversations are expected to focus on vaccine equity, not to mention tackling the climate crisis. >> difficult conversations ahead when it comes to the australian

prime minister. a very controversial few days when it comes to this new u.s.-u.k.-australia trilateral agreement. a pretty cool diplomatic data card, he is supposed to be there for the revitalized --, but it does look like there will be a bailout with joe biden as well as a catch up with boris johnson. >> we definitely have to keep an island little tensions. this week, tons of asian markets are a worry -- away on holiday, so let's turn to sophie in hong kong as we see what to watch. >> the chip supply shortage will be on the agenda, being

exacerbated by europe. honda seeing its output in japan is 60% below what it planned. vehicle production estimates globally through 2023 shot analysts, saying that the cut suggest a 15%-30% drop in auto suppliers for this year. and the chip crunch is seen weighing on fundamentals, about 6% this month. we do have ubs seeing it dropping to $1000 by the end of the year. losing more than 20% alone. not great, then, for australia's futures. newcastle coal has doubled.

and switching on the board, uranium has had a very stellar run, indeed. the highest level since 2014. this is actually the wrong board. but uranium, over that submarine deal. >> let's get more on that when it comes to the bloomberg aspects. scott morrison is defending his government's decision to drop that deal for diesel-powered submarines in favor of a nuclear option developed with the u.s. and the u.k. he says they knew about the serious concerns about the french design. >> australia, like any sovereign nation, must always take decisions that are in our national interest and that is what we have done in this circumstance. we have made this clear for some time. this was an issue that had been raised by me directly some months ago.

>> paul allen, the french theory continues, at least publicly. what is the latest? >> scott morrison said france shouldn't have been blindsided by this. they had previously raised deep concerns about diesel-powered submarines. this deal was also worth $65 billion u.s., it was already overbudget, already running late, and the strategic environment has changed as well. scott morrison said australia would have been negligent if it had not taken the advice into account. forex archive however, outraged as one would expect. it has also canceled a meeting that was planned for the u.k. defense minister. >> how much damage hasn't done with the relationship with france? could a trade deal with the e.u. yet risk? >> the french-european affairs

secretary is certainly suggesting right now that the european union can proceed with a deal with australia afterward because a betrayal of trust. that deal has been progressing rather slowly as well. france hurrying to speed things up. you also have to bear in mind, president macron is facing an election. he needs to appear tough on this, domestically speaking. he also has a long history, of course, between france, the u.s., the u.k., and australia of these countries fighting in two world wars together. there's also a long history of disagreements, like the nuclear testing of the pacific and a number of other issues as well. >> of course, we do have the clock ticking here in the u.s.

as well on that congressional vote to raise the u.s. debt ceiling. treasury secretary yellen has renewed her calls for action. kathleen is here with the latest. kathleen, secretary yellen warming of economic catastrophe. >> she certainly is. look at what you set about what happens if the best doesn't raise the debt ceiling soon in a wall street journal op-ed over the weekend. the country has always paid the bills on time, but the overwhelming consensus on both sides of the isle is that failing to raise the debt limit would produce widespread economic catastrophe. here is what she lays out as some of the things that could happen. we would be defaulting on the debt number one, which means you wouldn't pay things like social security. military troops wouldn't get paid. childcare tax credits might not get handed out. all of this to pursue potato historic financial crisis. possible spiking of the interest

rates, stock prices falling. bond yields all over the place. ultimately, this wonderful economic recovery could even turn into a recession. so dire consequences. why isn't this going to happen like a slamdunk? well, for starters, let's remind everybody that the vote on the debt ceiling, $20 trillion, that is supposed to happen this week. remember the infrastructure bill the democrats wanted past? they can't even decide themselves what to do among moderates and progressives. at the same time, republicans are saying you are on your own. we are united in opposition to raising the debt ceiling. you are spending all the money, you go ahead and do that with your budget reconciliation if you want to. that is what the problem is right now. what is going to happen? goldman sachs does know that even if the debt ceiling doesn't

get raised immediately, the treasury will have the money to pay u.s. bills until at least late october, early november. there is a little timeframe here that markets are getting nervous. >> voices also getting louder when it comes to the potential papering. -- tapering. what is the warning here? >> the warning is that this is going to be a big shift from record stimulus from the government, fiscal spending, already starting to taper down. the federal government has already been stopped. now, the u.s. is going to face one of its biggest missile cliffs in history, and u.s. expansion as a result has in slowing by the middle of next year for that whole second half, at the hamilton project in washington. they are saying that at some point by the second half, the economy may be moving sideways. he expects gdp growth in the

u.s. to be down to 1.5% by the end of next year after growing nearly 6% this year. that is down the road. all of this swirling around has a lot to do with these things that the debt ceiling. a lot going on at once. >> a lot going on. a lot going on when it comes to geopolitical tensions as well. we are now hearing that boris johnson, the u.k. leader is set to tell jeff bezos that amazon must pay their fair share of tax. we have heard this from downing street ahead of the trip by boris johnson and other world leaders to the u.s. the prime minister has planned to press jeff bezos when they meet face-to-face in new york on monday. this is of course part of the trip we will be addressing the u.n. general assembly and joe biden at the white house. when it comes to amazon, of course, the situation has been

facing consistent pressure on whether it phase -- pays its fair share of taxes. we are also hearing that boris johnson will be seeking to try to smooth over relations. we heard reports that defense talks have been canceled on account of this controversy over the u.s.-u.k.-australia defense agreement and the scrapping of those french nuclear purposes. this week could be a moment of truth when it comes to heavily indebted developers in china facing key votes on interest and payment deadlines. stephen, is this the drumbeat of increasing pressure on this group? contagion or no contagion? >> that seems to be the question. but with china on holiday today and tomorrow for the mid autumn festival and ahead of what will

be the national week, the golden week with the national day holiday, not october 1, is going to be a lot of breaks, of, and fewer gauges to see whether there is, indeed, contagion. that is why a number of traders will be looking offshore today. it did week and thursday and friday about 7/10 of 1% dedicate pass through that moving average. that is one way to see how difficult the contagion level may or may not be. of course, there is this bank loan interest due today. however, the housing authority and other regulators in china have already informed the big state they don't expect that interest payment today. but thursday, there's a couple of bond payments due as well, $84 million for font interest due on thursday. that is an offshore dollar bond,

but there is also an onshore bond worth 232 million. that coupon is do the same day. there is a 30 day grace period that would basically indicate it won't be a default until 30 days later, still, this is a crunch week obviously. >> so given that default may be looming, what steps are they taking in order to levy this liquidity crunch? >> we obviously know that the ever grant as well as the local officials have hired their own financial advisors. they are working, perhaps, on what would be china's largest debt restructuring plan. they have 300 billion dollars plus in liabilities. in lieu of that, they are trying to appease the hundreds, if you will, people who have protested outside the headquarters.

they want overdue payments on the wealth management products, some 70,000 people have bought these products. employees, as well. what we have heard is over the weekend, the fire sale, if you will, on the property, they are trying to convince these investment product holders to take discounted properties. so they don't have the cash right now. so it seems as though some are taking them up on that offer. >> let's now get over to vonnie quinn with the first word headlines. >> china's top regulator has defended their multi secular market tracked down to wall street executives. saying stricter rules were not aimed at tech or private companies. bloomberg's sources say the vice chairman for business leaders

recent events and actions were not intended to reduce social anxiety in consumer heisting ---facing industries. they say they must ensure transparency and consistency to both companies. president biden's chief medical advisor says booster shots for more of the u.s. population remain a possibility soon. an advisory panel to the u.s. fda recently rejected a national booster rollout for all ages, however, fauci says the guidance could change as additional to statistics come in. the u.s. is expected to review data from a modern and j&j in the coming weeks. canadians vote monday in an election that is too close to call. if victory for prime minister justin trudeau liberals could be a follow-through on a promise to increase taxes on think banks and insurance companies. and, more stricter emissions rules on oil and gas companies. a win for conservative leader could bring a relief rally in canadian financial and energy stocks.

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. >> coming up, 20 monopoly says investors should remain focused on rebalancing. he shares his market outlook just ahead. this is bloomberg.

♪ >> if the economy evolves broadly as anticipated, it can be appropriate to start reducing the pace of asset purchases this year. >> this year is definitely going faster than we have thought. >> the timing and pace of asset purchases will not be inclined to carry a direct signal. >> there will be some increase in interest rates. >> next year, maybe some --

>> the economy remains fragile. >> key risks for the price outlook are tilted toward the downside going ahead. >> it's time now for the week ahead. we have a jampacked calendar. we will get at least 15 central banks deciding in just the next few days. the fan will take center stage with its decision on wednesday. officials are expected to hint at when they will start tapering asset purchases before a formal announcement in november. that is with jerome powell in a tough spot, how to communicate the move without spooking market or sparking speculation of a hike to also have new clean and fresh spot where some of his

hawkish colleagues are already projecting a lift in a 2022. >> the fed is in a really, really difficult position right now. >> a tapering decision. >> it is going to be hard to do so if economic data fails to show up. >> the fed is going to make up stories to fit their story. >> whatever the fed does or is looking to do could be dead wrong. >> the fed has already looked at a draft that they intend to taper before the end of the year. >> the fed is talking tough or whatever. >> they have been so consistent of ovaries -- always offering a dovish tilt to these meetings. >> lots more on the monetary front. the central bank wanted investors, a rate hike may be in store for bank of england. write down the middle whether there criteria has been met.

we also get another five decisions that the doj, indonesia, and the philippines are all expected to remain on hold. the united nations general debate begins in person on tuesday. president biden will also host the inaugural summit on friday following that defense pact with australia and the u.k.. >> and ever grande stockholders are about to get their wish. we will covered just how dire developers pricing really is. a high likelihood of defaults, trading at less than 30% of its value. >> those are the main events coming up in your week ahead. >>, next guest says that due to these hard valuations, we are going to need to have certainty around the inflation debate and

of course, we will know more tapering from the fed. he is saying to remain focused on rebalancing long-term assets. tony, great to have you with us. in terms of what jay powell has to do in this sort of high wire act, the balancing act, if you will, what does he need to say that would change your approach when it comes to these offers? >> for us, it is really going to be tied to when the tapering and how quickly it comes. we don't think the fed is going to be able to really telegraph that too much. that's why we've been telling clients to take advantage of rebalancing back to target, whether it is within equities, large or small ap, international, just because of the uncertainty. we certainly have inflation building in the system, wages are rising.

changes in the supply chain firmly driving prices. with so many central banks having to make decisions, we think it is a bit jittery. we are not saying all is clear, come back out, but we tried to be strategic. this is a time where we think investors would be well-suited to make sure that they are rebalancing and considering their particular financial positions. >> when you take a look at the reality that is how the world is dealing with delta variant and any new variants, does that make the reopening trade a compelling reentry point to some investors? >> it's interesting. the delta variant, beyond my responsibility from the knights of columbus, i centered a board for a privately -- privately held company in the travel and leisure space. things were going swimmingly until delta showed up. we have been talking about

stocks like american airlines, delta, reopening. but until we get enough comfort, i think we need the economy, the market as a whole, it is hard to see these trends growing dramatically. we just felt like it was overdone with some of the airlines and some of the travel stocks. that was certainly not a tactical trade as much as a strategic one so stocks priced down quite a bit. >> we continue to hear the long bells ringing on the debt ceiling. we continue to see political posturing. is this something that needs to be priced in, or do you just overlook it and move on with long-term views? >> i think it is ovaries seyfert rattling from the party that is in power. america always pays its bills.

but not only do you have the debt ceiling question, right now, you have this massive next stimulus. the democrats would like to see the 3.5 trillion dollars stimulus, the republicans are saying it is far too large. people want to see some of the stimulus come off. there's a lot of things in play. i think we are going to get over the stimulus hurdle. there is nothing we believe is going to stop that from recurring, but we think that is part of the dance around the next stimulus package that is being negotiated heavily at the moment. >> we have seen some of those sectors dancing higher when it comes to that stimulus plan. there's the energy sector, the clean energy sector or infrastructure. are those some of the best that interest you, or have they already been run up too much? >> some have been run up too much. our energy situation in the u.s. was largely a political situation. they factor canceling the pipeline, slowing the ability of the shale in the u.s., and then

suddenly -- suddenly you have energy increase. again, we think some of those green energy plays have run up quickly. the grid has got to catch up before all those green energy things can really take root. >> knights of columbus acid advisors president and cio. this is bloomberg.

>> here's a quick check of the latest business flash headlines. evergrande as kicked off a project to repay investors. investors will offer real estate and cash can start compacting managers for more details. more than 70,000 people -- the products including many evergrande employees. german national carrier -- plans to raise -- to repay a government bailout. it says it will issue new shares of less than half of friday's closing price. germany provided a 9 billion euro bailout when the carrier made a record loss.

u.s. transport regulators have urged tesla to address safety concerns before expanding on autonomous driving features. last week, elon musk said drivers would soon be able to operate the full self-driving capability of their car. however, the ntsb told the wall street journal the term self leading is misleading -- self-driving is misleading and should be fixed. the firm is said to be working with an advisor on options for union bank and has held formal discussions with potential buyers. it comes as u.s. regional banks increasingly look to pair up to better proceed with industry giants like jp morgan. >> taking a look at the day ahead for australia and new zealand, the nation continues to grapple with rising covid-19 cases. in australia, taking full

control of sydney motorway, paying more than $7 billion for a 49% stake. also, a scheduled investor briefing. >> president biden is planning to set a new course for global vaccination allocation this week. at a summit on the shortage of shots for the country, the move comes even as the u.s. moves to give booster shots to millions of fully inoculated americans. joining us now for the latest is tony. we had a very busy week for president biden whether it is the human general assembly or separate meetings. what are we expecting on the vaccine front? >> well, this is all part of a big party by the biden administration. there's going to be a virtual summit the day after biden

addresses the general assembly, where the pandemic will also be a major topic. and the goal that the administration plans to propose is to basically get global vaccination up to 70% over the span of the next 12 months. now, as you said, of course, the conflict, potential conflict, is that at the same time as the u.s. ministration has been pushing quite hard for rolling out booster shots broadly in the united states. how do you square that with why don't you also help the rest of the world? that is something that biden has plans to sort of tease out in the days ahead. >> of course, lots on the agenda with lots of different priorities.

climate, the vaccine rollout, taxation. where do you view the priorities? >> well, if you are talking about the biden administration, they certainly have a range of issues, and are also asserted that an intersection of international and domestic. yes, taxes, for example, are going to be coming up again in the weeks ahead as congress works on this big social spending and tax program that biden is behind. at the same time, of course, we still have the pandemic which, frankly, has not been going that well in the last few months. after the president said in july that it seemed like the country

was sort of on the cusp toward finally moving beyond the pandemic. so there is a lot on his plate. >> what are we expecting on the climate front? >> on climate, it is really the same issues as have been looming over the global effort. we need to somehow get china on board. prime minister boris johnson of the u.k., who just arrived within the last hour for the general assembly starting tomorrow, he has a big summit in glasgow that is coming up next month in october where, of course, he is in the spotlight for trying to spark progress on the global u.n.-sponsored climate talks.

so, there is a lot at stake for various leaders, not just joe biden. >> we too have breaking news, taking full control of sydney polls. $8.1 billion. we are also seeing a tollroad operator trends urban and three partners will be paying that announcer to acquire the remaining half of the state that they don't already own. this will prioritize the 49% ownership over the network disconnect. really concerning reports that we have been hearing over the weekend. trading holds are pending. expanding vaccine access will be

dominating the u.n. summit. we spoke with the u.n. secretary general ahead of that meeting. >> it is clear that we need to be at conditions i suggested today. with coalitions of countries that have the finest technology and the capacity, the countries to make true that we have a quick transition. with the present pattern of the energy transition in the world, we will not get there. this wakeup call is, i think, essential to make sure that countries are able to present new commitments, to engage in a positive way it international corporations, and if you want to rescue the planet. >> youth and warning us of a catastrophe in afghanistan. do you think the international

committee and largest writing the right balance, or do you think they need to increase more assets to help the people of afghanistan? >> economic collapse requires, and of course, independently, we have regime that exists today, sanctions or others that they may be complicated. it requires that quickly the international community finds some mechanisms to inject cash to allow for the afghan economy not to collapse. if the afghan economy collapses, it is a big disaster for the afghan people and for those relying on the region. we would need waivers and some of the sanctions we have established. workers for traveling, for contacts, a number of other practical things. we need mechanisms allow them to inject cash to the economy. >> onto another topic that will

be very significant for you, i believe, booster shots and donations of the covid-19 vaccine shot. wealthy nations are considering getting booster shots to the population while much of the world remains unvaccinated. are you worried that the booster shot can potentially come at the expense of the unvaccinated? >> we must go further. the problem we have today is that a country like mine has 80% of the population vaccinated. we have not much vaccine resistance. we have a number of countries with less than 2% of people vaccinated. what we need is a global vaccination plan. and to have a plan, we need to have a meeting. those that have power are the countries that produce vaccines. or can produce vaccines, if they have licenses and technical support for that. to bring them together.

able to deal with the pharmaceutical industry and then sort the problems into what is needed. we are not philanthropic organizations, we know that. but do have a global vaccination plan, which implies doubling the production capacity, which can be done. >> antonio guterres spooking to bloomberg news. let's now get to the first word news with vonnie quinn. thank you. >> scott morrison says francis aware of australia's concerns about the capability of its military submarine designs. he says australia understands this appointment but the decision is on security grounds. frank tate told for the first time over the decision. u.s. treasury secretary janet yellen has renewed her calls for

congress to raise or defend the debt ceiling. she says failure to do so will produce an economic catastrophe. a standoff between democrats and republicans on debt limits consent the u.s. enter payment in full next month. thousands do to vote in the coming days on whether to raise the debt ceiling. the biden administration is negotiating with pfizer to buy an additional 500 million covid-19 vaccines to donate globally. sources say a deal is expected to be announced in the coming days ahead of international summit biden has called for on the sidelines of the yuan general assembly. washington struck a similar agreement in august with the covax program. philippine boxer and senator has announced he is running for president in the election next year. this could present a potential obstacle to the succession plans. he could slip the boat, opening

the door for opposition figures. he says he has never backed down from a fight. 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. >> we've learned that china's top regulator has defended the crackdown on various industries in last week's meeting with street executives. reassuring them that the stricter rules are not meant to stifle tech firms and the private sector. what are chinese regulators saying are the goals of these crackdowns? >> so the chinese regulators had a three-hour meeting on thursday with top executives, basically reassuring them that they are not aimed at curbing technology companies for the private sector. they said that the goal is more

aimed at increasing data security and national security and also, some of the rules were meant to reduce social anxiety. >> what signals -- what signal is the chinese regular sending to wall street exactly? >> to signal they are sending to wall street is that the series of regulatory changes they have about is not meant to decouple china from the overseas financial market. we know that some of the technology companies and education companies are listed in the u.s., and the chinese counsel earlier has said that they are increasing their regulation on overseas business. all of these actions have kind

of scared off global investors, and the meeting that happened this week was meant to reinsure global investors that this series of actions was not meant to decouple the chinese market from the rest of the world. >> what has been the wall street reaction? >> we know that blackrock said that he wanted china to ensure the consistency of the longer-term government policy and if there is more consistency, they would help with transparency among global investors. we also know that he thinks that it is important for china to put in place a financial safety net for the aging population and that has become an issue in the chinese society because the aging population. this is according to people

familiar with the meeting that shared the details with bloomberg news. >> still to come, one of the worst-performing commodities around. how that will ripple through other markets. this is bloomberg.

♪ >> the most interesting number of the week to me was the new york fed survey that really shows pretty clear evidence both one-year inflation expectations and three-year inflation expectations may be becoming unanchored. the data flow, whether it is housing, whether it is more and more anecdotes, more and more places with supply chains, whether it is direct measures of expectation looks increasingly concerning to me. >> the former u.s. treasury secretary larry summers warning the data looks increasingly concerning on the inflation front and this, of course, coming as we continue to see the energy crisis and supply chain issues. this would be the benchmark for asia, more than doubled its price. we have seen natural gas

shortages in the world turning to dirty coal for electricity. it fell below $100 at one point for the first time in 14 months. remember, we do have those anti-pollution measures coming from china. that policy affecting them. nickel, also sort of giving up its gains. we have seen a rally earlier for a move to keep more nickel in the country to support domestic tv batteries, gold has also seen two weeks of consecutive losses after those robust u.s. retail deals. of course, we are watching the meeting this week to see what policymakers will do and how that could affect yields, the dollar, and gold prices as well. >> the energy crisis in europe,

let's start off with ore phrases. where do we see this situation >> >> proceeding from here? iron ore price is a dramatic turnaround as we dive right into the bloomberg. you can see the brutal decline as it falls below 100 metric tons for the first time in over a year. that is after reaching a record back in may. the slump, which is a 55% drop from they comes as china wants to reduce pollution in the sector. there is a sharp downturn in china's property sector driving demand lower. if we dive back into bloomberg, you may have just seen the dramatic drop in momentum. past efforts by beijing to rein

in the steel production have largely failed, but analysts say this year efforts will likely be strictly enforced. that pushing down the demand for the commodity. meanwhile,coal prices have doubled. in australia, those prices have surged to a record, and all of that having to do with the fact that supplies have been limited because producers are not building new mines. ironically, given the crackdown in china for environmental concerns, coal ending up being one of the dirtiest fossil fuels environmentally speaking. all of this being driven by the energy surge and demand. >> the european gas prices are trickling this year. >> and if we go into bloomberg once again, any level of energy demand is surging, whether it is

electricity or natural gas, any kind of power. if we look at oil prices, we are seeing those also surging higher for the fourth straight week, even as we are seeing asia trading with a dip on friday due to the increase by the russians in terms of their exports. but natural gas, really what everyone is keying on. not only is it rising to records in the u.s., but in the u.k., it has tripled, which has driven at least seven energy producers or suppliers out of business. there are now emergency talks underway in the u.k. to have some of these energy suppliers perhaps bailed out and there is a special administrator being talked about being put in play. again, that third day of talks set to begin. >> meanwhile, the international

energy agency warning that the gap between rhetoric and action in order to cut emissions, especially amid the ongoing power crunch. i spoke to faith barrel, who weighed in on current targets. >> there is a huge momentum for all european countries including the u.k., the united states, canada, china, they all committed their governments to a net zero two reduce their emissions substantially. which means reduction of fossil fuels. this is a commitment. and these countries, if you put them together, they make up three fourths of global gdp.

number two, according to our numbers, this year again, we are seeing the second-highest increase in global emissions in history. what i see is that there is a widening gap between the rhetoric, what governments say, and what is happening in the markets. >> that was the executive director speaking. we do have lots more ahead this is bloomberg. this is bloomberg. .

♪ >> you are watching daybreak australia. over and morgan stanley, they are asking what on earth is happening with commodities. first, the interconnectedness of private markets. second, just how difficult it is to excavate the moves in that space. third, how slim of safety is for the future. as for the near term, morgan stanley strategist expect the ongoing commodity prices will be a boon for energy and materials stocks. in over at ubs, they recommend for japan in the near term and sector-why, they are favoring energy, finances, health care as

a continued upside for global stocks and rising earning forecast. profit margins expected to stay strong. heidi: let's get a quick check of the business headlines. facebook will be pushing back on report that it was aware of the negative impact of its product. it's is allegations made by the wall street journal injure the whole picture. facebook said the issues of content moderation, mental health risks, and misinformation are complex and require -- defy simple policy solutions. credential plans to raise of to $2.8 billion in hong kong. these will offer about 130 million shares of the hong kong stock exchange. they plan to redeem existing higher coupons with a balance that contributes with asset

investments. the marvel superhero film "shang chi dominated the box office in the u.s., raking in at just under $22 million in u.s. sales. it is one of the biggest hits of the year. u.s. theaters are still struggling with the pandemic. international carrier plans to raise $2.5 billion to repay a government bailout. the carrier says it will issue new shares at less than half of friday's closing price. germany provided a bailout at the start of the pandemic when the carrier made a record loss. >> and we do have breaking news at the moment, we are hearing that arnett -- has gotten a cash proposal. that is an energy delivery service provider and at this price, it would be a premium of

26% to the closing price last week. that is it for "daybreak australia." "daybreak asia" is next. this is bloomberg. ♪

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haidi: welcome to daybreak: asia. shery: good evening from bloomberg headquarters in new york. our top stories this hour. asian stocks set to start the week lower ahead of a fed meeting set to offer new clues on the taper timeline. investors looking ahead to china ever grand's moment of truth