haidi: hello and welcome to "daybreak asia." sophie: we are counting down to asia's major market open. shery: and good evening from new york. our top stories, germany's election is too close to call. social democrats inching ahead but coalition talks could take months. ever grant's electric car unit

slams the brakes on a listing saying there is no air t it can meet financial obligations. plus, canada considers its future relations with china as two jailed citizens return home after the release of the huawei cfo. haidi: a lot to get to. we are keeping an eye on the german election. too close to call it probable success when it comes to the social democrats. they are poised to complete what has been a remarkable turnaround to lead the next government. but whenever we get the outcome it is the end of an era when it comes to angela merkel's stepping down from the perch. we are also hearing there will be smaller parties in the play as well. the greens and more business friendly ftp will prop up either winner in the next government. shery: major implications of the

leadership vote for germany, the europe, the west. also implications of china's ongoing regulatory crackdowns from the property sector to the crypto space. the latest we saw was from the pboc now banning all crypto-related transactions and vowing to crack down on mining. what that means for the bitcoin sector, we have seen increased volatility over the weekend as we continue to see them move down for bitcoin. haidi: of course we are always continuing to watch ever grant. this is a story that keeps on giving. some of that pressure may have come off but another week brings another repayment deadline. we have also been talking about what happens is the eeev part of the business testing -- we have been talking a lot about the logistics and supply chain

side of the growth crunch. the very next downside pressure for chinese growth and global growth could be power. we are seeing this coming as a result by and large of some regulatory implications of carbon neutrality. the goals beijing are wanting to play into. that very much impacting the crypto mining part of the story. we're watching for these power and electricity levels that have been failing to be met by a lot of provinces across china. shery: one company where watching is huawei after their cfo was freed in canada after an arrest that took three years. it was a thorn on the size of u.s., china, candidate relations. finally washington really trying to smooth over that relationship with beijing. we are now seeing some

republican lawmakers criticizing the biden administration of appeasement in the face of what they are calling china's hostage diplomacy. haidi: what a homecoming for her. in red, patriotic red. she gave some remarks about how delighted she was to return to the motherland. welcoming banners. it was a stark contrast as you marked the return to canadian soil, albeit under more subdued circumstances. let's get back to politics in germany. such a democrats party is taking a slight lead in a race that is still too close to call. >> it is going to be a long election night, that is for sure. it is also certain many citizens have voted for the spd because they want to change in government and they want the name of the next chancellor to be olaf shult. haidi: three parties maybe need to secure a majority in the

problem for the first time in decades potentially meeting months of dealmaking ahead all of which could see -- let's cross over to berlin for the latest. if this election is too close to call, what does this potential coalition look like and the horse trading that is to come? >> at the moment there are really four parties in the mix. two of them are pushing to leave the next government. that would be the merkel's conservatives and the social democrats. what they want to do now is try and convince the two other parties, the liberals and the greens, to come into a coalition with them as well because at the moment as it stands it is unlikely we will see a two way coalition. shery: what does this mean for

germany's relationship with the rest of the world? >> something that is really interesting that we have been hearing the past couple of weeks is while all the centrist parties in germany are very pro-europe and pro-the transatlantic partnership with the last, the two smaller parties and will still play a key role in coalition building, the liberals and the greens, have expressed incredibly hawkish stances against china in comparison to the merkel era. that will be interesting to see because the liberals and the greens are the parties that whatever the outcome are probably going to be in government, albeit in smaller roles than the leading parties. they are both expressing extreme hawkish stances against china. shery: let's turn to china and one company, ever grand. the electric car unit scrapping their proposed shanghai star board listing amid significant debt and liquidity challenges.

for the latest let's bring in stephen engle in hong kong. stephen: this is a classic case of market conditions were not right for secondary listing. it is listed here in hong kong. the stock is down 93% year to date. it has been obliterated by indebtedness and bloomberg news reported that the electric vehicle unit of evergrande has been having trouble paying staff and suppliers. they put out a statement saying due to careful consideration they have decided not to go forward with this proposed star board listing. they cited as well on the statement friday saying a serious shortage of funds at the parent as evidence by what we saw last week with the coupon

payment. granted they have a 30 day grace period to pay $84 million u.s., but they missed it. the parent has another bond payment coming up wednesday for another $45 billion u.s. and no real-world coming from the company on whether they intend to pay. new energy vehicle units, just a year ago this was a health services company. they switched into eeev and have not even delivered a single mass-produced car yet. that was scheduled for next year. in february this company here in hong kong had a valuation higher than general motors and for it. now it is a mere shadow of its former self and has been on the selling block but there have been no buyer as of yet. haidi: stephen engle, there. she touched down three years

after her arrest in canada. gave her statement to a cheering crowd after landing. >> after more than 1000 days of suffering, i finally returned to my home country. the long wait in a foreign country was very torturous but when i stepped down the boarding steps and had my seat on the ground, the warmth of the homeland filled me with excitement beyond words. i am back. haidi: meanwhile, the two canadians freed by beijing returned to their homeland with much less fanfare. for more, let's bring in our vancouver bureau chief. you can see her speaking to a rapt and completely dedicated crowd as she arrived. trending across social media as well. what are the broader implications of this final twist

in the three-year year development of this case? >> it is really remarkable. both washington and beijing have declared a victory from this. washington got her to admit to wrongdoing which will bolster its a broader racketeering case against huaweiit's -- against huawei it's pursuing in the court. and china won back their daughter. but these victories have come at a great tossed. billions of dollars, families torn apart, hours of court hearings wasted, and the reputations of the u.s. and china hit. china has engaged in diplomacy to get its way and the u.s. is criticized for having giving into that. shery: was candidate up the

biggest loser in this three-year drama -- was canada the biggest loser in this three-year drama? >> absolutely. i think the one clear lesson from this is the two michaels, who were under very difficult conditions for more than 1000 days in chinese jails and will likely carry that trauma for the rest of their lives. haidi: natalie with more insight into the saga around huawei. let's turn to sophie for what she is watching in the markets. sophie: taking a look at the gmm early this monday morning we are seeing a soft start for asia with kiwi stocks slightly higher while we are seeing currencies under pressure with the dollar cap. equity futures pointing to the downside this monday morning. we are seeing moves higher for oil.

goldman has boosted its year-end forecast with the supply deficit in widening more than expected. driven in part by faster demand recovery as vaccinations lead to further reopening in asia. jp morgan expecting the delta and supply chain headwinds in asia as several countries tolerate an endemic approach. jp morgan predicting a wave of cash spending and services helped by more policy support in japan where things are expected to be lifted this week. while investors wait for signs of stimulus and easing from china, exacerbating the slowdown. jeffries seeking opportunities. favoring factors like consumer

staples and electrification while also warning of downside risks to both as well as earnings as shortages are hitting sales and margins are expected to get squeezed. turning to south korea, which saw a fresh daily record last week after the holidays pit we are waiting for the vaccination plans for the fourth quarter to be announced later this monday afternoon. about three quarters of the population have received their first dose of the covid vaccine. shery: let's now turn to vonnie quinn with the first word headlines. vonnie: chinese police have arrested the chairman and ceo of hna group. they say only that they were detained by police for suspected crimes. their debt field acquisitions became an early symbol of corporate excess, now firmly in beijing's sights. the conglomerate was effectively taken over in february of 2020 by the government. ims managing director has given

the lenders board a more detailed defense against accusations she improperly influenced a report in china's favor in her previous job. bloomberg news has obtained her letter. in it, she says it is not true she played a key role and changes related to china's ranking. taiwan's main china friendly opposition group elected a party stalwart as his new chairman. he took about 46% of votes in the contest. this is his second stint in the role since 2016. chinese state media say president xi jinping congratulated his on his reelection. u.s. speaker hank nancy pelosi pledged -- pelosi says she will put the measure forward on monday.

the senate has already passed it but democrats are divided on a separate bigger package of spending. pelosi says the headline of the bill will be lowered. >> we are going to pass the bill this week. i promised we would bring a bill to the floor that was according to the language of those who wanted this to be brought to the floor tomorrow -- but i will never bring your bill to the -- i will never bring a bill to the floor that does not have the votes. vonnie: global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, more from china's crypto crack down from the ceo at australia's largest cryptocurrency exchange. this is bloomberg. ♪

>> china has banned crypto eight or nine times. >> they are prohibiting citizens which is certainly going to have a dampening effect on the ability to use cryptocurrencies for any transaction. >> an attempt to stem capital flight out of the country. >> every time we have seen this come up we have seen the resiliency of the community around digital assets and that volume has moved. >> highlights the strength of bitcoin as a decentralized

peer-to-peer system. >> ultimately for blockchain-based payments that industry is going to do better regulated in a sound way rather than trying to be some kind of libertarian paradise. haidi: some guests speaking on bloomberg on the impact of china's regulations on crypto. our next guest says he continue to like bitcoin as an inflation hedge but it is the only investable and valid cryptocurrency. fred lane. i am curious, these latest developments out of china seem to be really getting serious about the crypto ban. does that change the implications for you when it comes to holding bitcoin even as an inflation hedge? fred: no, it really doesn't. let me first address why i say that bitcoin is the only crypto currency in which we would invest. i think it is important to distinguish bitcoin, which will never have more than 20 more on

-- 21 million coins in circulation, from the other cryptocurrencies which have essentially an unlimited number of coins that can be produced. bitcoin if you think about it at the current market value of 21 million coins, at today's price, is about $1 trillion. that is ly about 10 or 12 or 14% of the value of gold in circulation. so we think of bitcoin as being uniquely a store value. we do not think of it as being primarily a transaction-based asset. think of it as a store value asset. and frankly we think what is going on in china, remember they banned bitcoin mining because of the energy consumption on the economy. and of course bitcoin miners pulled out of china in large numbers and that drove the price down as bitcoin miners had to

liquidate bitcoin to finance their move of operations. at present, with the ccp is doing is basically protecting themselves against capital flight. the real estate bubble in china is very serious. the evergrande situation is serious. it's probably the tip of the iceberg. there are a lot more problems in china vis-a-vis real estate speculation. if and when that comes undone, the last thing they want to do is aggravate a flight of capital out of the country. aggravate the banking situation. so we are not worried about it. sorry, go ahead. haidi: you mentioned bitcoin mining as being one of the reasons china is cracking down. you are quite dubious about what you call the -- i can understand arguments to say it will take more than 10 years for renewables and green energy to replace fossil fuel, but is it really a trend when it

is clearly that businesses and policymakers and governments are all headed in the same direction? fred: it is a great example of social pressure and cultural pressures driving markets. it is not logical to not invest in fossil fuels but i will tell you, it is fanciful to believe that by 2035, biden's objective of being largely dependent on renewables, that will not be met. by the way, ask the people in louisiana who have gone through hurricanes. go try to drive your electric car when the electric grid is down for a long time. the fact is if we want green energy in this country there is an answer. it is called nuclear energy. that is another area we believe has a bright future. but it is very far off and has tremendous resistance. my problem with esg investing is i cannot define it. when i say that, i am not saying

that in a flip way. i know companies that are environmentally noncompliant. haidi: let's narrow the view to fossil fuel companies. oil generating companies, major oil companies. a huge rally in oil prices but oil stocks not catching up. so why are they not catching up? fred: i should start by saying -- we invest in technology, consumer products, renewables, uranium. we're basically focused on growth companies. health care, wellness, pet care, things of that nature. i don't like fossil fuels as an area to invest because they are so socially demonized in our culture. they demonize fossil fuels. as a result, they have become incredibly cheap. and i think if you look at it logically and you look at it statistically, you realize that fossil fuels be with us for another 20, 30, 40 yuears.

-- years. when an asset classes so demonized and hated and the values are so driven down -- and by the way, u.s. policy is basically discouraging drilling -- that's what driving the price higher. but the price going higher is also a very good indicator of a strong economy. once we are through this pandemic problem and all those related issues and the inflation that goes with it, we're going to have a very strong economy. unfortunately the increase in energy prices is going to be another contributor to inflation. because 20% of our cost inputs in this country at least come from fossil fuels. haidi: fred lane, it was great having her insights. thank you. don't miss two big exclusive interviews coming up in the next hour. we will hear from the dbs ceo about the bank's role in setting

up carbon credit markets. plus, lawrence wong joins us to discuss the path towards reopening and its economic outlook. plenty more to come. this is bloomberg. ♪ bloomberg. ♪

haidi: a check of business flash headlines, company plans to raise four $.5 billion by listing stuck on the shanghai exchange. the company will issue 2.6 billion new shares that we use this for project milliman. it experienced a 221% jump in august and stock prices gained more than 12% this year. prudential plans to raise money from a hong kong stock offering, insurers selling shares at around $90 apiece, a slight

discount what the friday close. prudential plans to get the proceeds to reduce existing coupon debt and contribute to investments in asia and africa. we would get more on crypto crackdown, the ceo of the it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. (woman) i don't want to look like this anymore. (man) what is happening to my body? (woman) why can't i lose weight? (announcer) you may be suffering from insulin resistance. measure your waist. females measuring more than 35 inches and males measuring more than 40 inches

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shery: we are counting down to the start of trade in tokyo and seoul. over in japan we are awaiting august services ppi data, estimates are for growth of 1.2% on the year. on the corporate funds, sony and focus is it attempts to take over india as the entertainment hits a snag. invesco has renewed its demands for the company board to reshuffle and says the deal was struck in an erratic matter. following the race for the top

position of the ldp with party elections happening in two days. candidates are battling on social media to firm up support. in south korea the government will announce its fourth quarter vaccination plan later after virus cases hit a record last week. we are tracking peace efforts with the north kingdom and kim's sister has reached out to south korea again. she says that they would consider another summit if seoul adopts a list -- less hostile policy. we follow plans after a company postponed its listings to november. we are watching crypto related assets as well as chinese officials have taken steps to crackdown on currencies with mixed effect, but they have now moved to erase any doubt about their intentions. let's discuss implications with

the head of australia's largest digital exchange. caroline, great having you with us. give us your take about beijing walking away from crypto assets. >> good morning and thank you for having me. aside from the crypto issue, this may be a misstep from china . as countries are trying to deal with in a sphere of influence, look at el salvador, afghanistan , several countries moving toward the coast of cryptocurrency as china is pulling back. they have put so much effort into their outreach, particularly in their efforts and latin america, and as they are pulling back and other regions are moving in that will cause a problem for their downward line. shery: we have seen the exchange to move orders from hong kong to

the bahamas. what does this mean practically speaking for all of these companies that have relations with china, chinese users as well? >> if you look at two well-known behemoths in china we saw the impact on trade over the weekend, it experienced considerable drops add value. companies that have that exposure to china will be scrambling over the weekend to withdraw their positions. it is of deep concern for anyone with that level of exposure. it is important to frame it within the crypto industry itself. the industry as proven its robustness. this is the second time this year china as attempted to ban crypto. the industry saw a drop off in

price in june, but we will see what happens in months subsequent. there was an impact as you would expect, we are also reading off the back of what is happening with evergrande and wider applications there. this is further proof of the robustness when it comes to cryptocurrency particularly as it takes its place on the global stage. for us we are looking at what happens in china. we are looking at what happens in the u.s. and where they are taking their regulations particularly considering how we have seen over the course of this year westward toward bitcoin mining and regulation overall. if i had exposure to china i would be concerned. haidi: take a look at the long-term trend direction when

it comes to bitcoin, we are still pretty far off the all-time high above 50,000. do you see that market recovery and how much is it priced in the news out of china given it is more severe, but we have been hearing variation of this sentiment since 2019? >> the price to we saw is indicative. it was a 5% drop off over the weekend and the price. to counter that with the other news that came out, britain said it will now allow its users to send bitcoin. you have twitter users that will be able to use bitcoin as part of their social media transaction. do i think we are going to see a $60,000 price point again?

i suggest that is the direction we are heading in. anyone would be foolhardy to say this is it, the one and only. time has shown that we like to change what we use as a method of value exchange, and certainly i would imagine for bitcoin there will be many contenders to its ground. -- crown. haidi: when it comes to australia there have been criticisms within the industry that regulation or a nurturing ecosystem as fallen behind compared to other places like singapore and parts of the middle east. do you expect there to be another fruitful conversation about cryptocurrency or is there a chance we will see these jurisdictions taking china abortion -- china's lead?

>> this relates to both government and regulators. we wait for the report to come out from the senate next month. this is an opportunity, with china retreating from the field there is a chance for countries such as australia to step forward. we also have an opportunity when it comes to green the mining of pickling in the green energy solutions here. if you look at the opportunity iran has taken it constitutes -- of bitcoin mining globally. that shows the opportunity there that other nations are stepping forward. we will have to ask ourselves do we want this to come in if countries such as iran, el salvador or do we see an opportunity for australia to step forward particularly when you look at other local countries in the asia-pacific.

singapore, very much a beacon for the industry. there are opportunities for partnership, collaboration and for australians to find a way ford -- forward. haidi: caroline bowler nice to get you out -- nice to hear from you. vonnie: elon musk is addressed of the world internet conference reassuring beijing about his company's commitment to invest and expand their. delivering a promise from president xi jinping that china will work with all countries to create a vibrant digital economy. also there at the event were the ceos of intel and qualcomm. canada's foreign minister says the country is wide open when it comes to normalizing patients with china following the release of two imprisoned canadians.

they spent more than 1000 days in solitary confinement intranet accused of spying. it is in contrast to the hero's welcome given after an arrest. scott morrison says states cannot keep or disclose once targets are reached. the coronavirus cases are low, but western austria as been reluctant to up into other areas. morrison says this needs to change when 80% of people are fully inoculated. german exit polls show scholz of the social democrats edging ahead. he was the front runner over the final weeks of the campaign. it indicates the party will win

26% of the vote. the christian democrats are set for 24.5%. both men same -- say they aim to run the country's next scheduled event -- next government. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. haidi: it is an emotional roller coaster, this story, we thought that we were going to potentially talk about this good news story of -- claiming they had their first female majority parliament in europe but that has been revised due to miscalculations, we are hearing they -- the claim as been miscalculated after the rolling college added to its majority. it is a total of 73 men and 30 women in parliament after a handful of votes turned out to of been miscounted due to the

effective distribution. it is disappointing, but it is still obviously a step in the right direction. shery: this is 2021, right? why is this news in the first place? why do we have to rejoice we are getting the first female majority legislature in europe and have that being taken away, political leadership among women a key issue around the world. the human general assembly just happened because heads of state tend to be men, we have very few female heads of state. this was quite disappointing to say the least. we can continue with a roundup of other stories you need to know to get your day going. bloomberg subscribers go to tv available on the app.

customize your settings so you only get the news on the industries and assets that you care about. we are headed toward the japan and south korea open. let's turn to sophie. sophie: 30 minutes to tokyo open, nikkei futures under pressure, while the yen has drifted to a six week low and futures ticking lower as well. flipping the board, we did see tenure j yields rising to a three-month time pushing near six basis points, expected to climb after the fed flag intentions to taper. services that it will atlantic agenda ahead of the auction. turning to oil, wti closing in on $75, brent i $79. stocks have fallen to eight three year low and they -- and goldman said they will fall to it deficit faster than anticipated without vaccination push around the world.

brent, $.85 up from 61 just a week ago, a signal for traders. the global energy crunch has over fueled the rise in prices, and over at morgan stanley when it comes to impact of power cut in china, the bank says if they are prolonged that could not of one percentage point of gdp growth in the first quarter led by materials production. there could be more policies from beijing. haidi: coming up next this open group speaks -- sylvan group speaks exclusively to bloomberg on what they are trying to achieve through investing. that is next. this is bloomberg. ♪

shery: the grandson of the founder once to prove it is impossible to achieve high social impact and high returns. he is the psion of one of the

richest families and south korea now focusing on social issues and sustainability there is a bit equity firm. it was founded as a construction company by his grandfather before diversifying into an industry leader. even as a boy he had little interest in joining the family business. he spoke with bloomberg about what he is hoping to achieve with impact investing. >> there are at least three impacts i went to see in the next three years. five to seven years, the first days we went to prove that in the impact investment realm you can achieve high impact and high return. i am not saying it is easy to do but with the right mindset and right teams we can achieve high growth potential, we can create not only big impact from them

but also high-level financial returns that can satisfy our investors as well. the second thing is we need to see more larger corporations focusing into flexibility and impact. we will look into existing companies large enough and work with our advisors and our team and partners to transform those companies to be much more attainable. by doing this we can actually prove to other entities in asia who have said this is only possible in patagonia or other smaller companies, we are too big to do anything. we would like to prove that is not true. the third is, by investing into this large enough company we would like to create the actual impact dividing more affordable health care to more people and reducing carbon emissions and

all of this. the 20 20's are important timeline for human civilization to do anything about upcoming climate change. >> high impact, high returns? how high can returns be? realistically. >> realistically we believe it could be competitive in the market. we could compete with them, but i think the more important question is whether we are actually making the difference in the impact part. emphasizing heavily on in-depth research on different social and environmental issues and what that means in a local context, and we really want to prove that. investing is not some altruistic work, it is all about data and information, so after our investment because of our work we transform this opening into

creating more impact with quantitative data. >> obviously this is one of the brands synonymous with south korea, and there is great scrutiny on it, and regulatory findings have suggested that you bought a bigger share in your father's company, insurance at 0.5%. enough for some speculation that you are perhaps taking over the company. what are your thoughts on that end realistically is that going to happen? >> i am preoccupied, so i have been doing this for the foreseeable future for now, and if i at one point after 10 years i believe working for the family business is more of a suitable way for me to create a bigger impact than i will consider it,

to be honest i am quite surprised that many people are is interested in me buying this in share -- tiny share. >> it is unusual for an air -- heir to a south rim conglomerate move away from the business. >> when my family started to create a family foundation i started my career there. at the time the leadership of the foundation at a different vision and i want to do focus on social enterprise when at the time the foundation wanted to focus more on traditional nonprofit so i decided to start my own organization and i learned this concept of investing so i changed it to impact venture capital and at

this point i am doing impact private equity. >> are you seeing brian -- buy in from the family now? >> i am lucky to have a family supportive of what i am doing. when i told them i am starting this new organization they were like, what is he talking about? i am following some of the legacy my grandfather did. he started the biggest foundation in korea and hospitals and always emphasized the work of problem solvers, all of that, also see the potential of engaging in esg that is important for the business. most importantly it was really at my parents and my father who supported me. that is why i was able to do anything. the greatest thing my father ever told me -- technically he told my mother that he was very

proud of being known as the son of the founder of hyundai and he will be proud to be known as the father of a new and upcoming philanthropists and impact investor. that is the biggest support i can get. >> given how committed you are to esg, why not bring it to the family business? does it make sense for you to work in collaboration or with the family? >> i am having a lot of conversation with family members about what kind of impact they are interested in and what kind of obstacles they have to be transferred into this more socially impactful way. working for a family business that is a bit of a different question. so far i will be doing this and

i will be more of an outsider working the family business. this was not really a conscious decision. i wanted to be an independent person. right now i believe working in private equity funds enables me to up large corporations be more sustainable and impactful it is for me the most optimized way of treating impact, but at one point may be 10 years later if i think that transforming my family business to being more sustainable, leaving the company if i believe that will be the most optimized way of treating impact that will be an option. shery: that was chung speaking to haslinda amin. an alert on the bloomberg, we are getting ppi services number four japan, year on year, growth of 1%, which is a slower easing

deceleration from 1.1% in the previous month and also missing analysts' expectations. missing expectations at that 1% growth. plenty more to come on "daybreak: asia." this is bloomberg. ♪

shery: we are minutes away toward major market opens across asia. what are you watching? sophie: we are watching the front in australia, said minerals agreeing to it deal which was he accompanied a $242 million for a cornerstone state. api pharmaceuticals after they received an unsolicited offer from a health care company. we are watching reptile related stocks after china widening a ban. haidi: we have two big exclusive interviews in the next hour, a ceo joining us to talk about his plans to talk about launching a carbon trading platform and

singapore's reopening and overall economic as it continues to struggle with the delta variant. lawrence one joining us. we have the opening in sydney, seoul, and tokyo almost upon us. this is bloomberg. ♪

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shery: hello and welcome to "daybreak: asia." i am shery ahn. sophie: i am sophie kamaruddin. haidi: i am haidi stroud-watts taking a look at major market opens. ethics -- fx stocks so to start the week lower. we will be talking more about immigrants, fintech and more

would we are joined exclusively by the dbs ceo. another exclusive out of singapore, the finance minister will be joining us to talk about reopening plans as virus cases search. let's get you straight to market opens with sophie kamaruddin. sophie: in japan stocks divert from the nikkei and topics, above 2000, nikkei slightly under pressure after a gain on friday. crypto related stocks are watch this morning. under pressure falling about 1% start of cash trade in tokyo. as we digest august services ppi data, 1%, so with an estimated, treating the six week low. gbg got hit last week. in terms of south korea at where we are waiting on first quarter vaccination plan after its new daily cases hit a record last week following the holiday.

in seoul, kospi under pressure under .2 of 1% after a weekly decline. also watching stocks after -- said they may be taking part in the inter-korean summit and the korean won on the back. in sydney, after a three-week decline for the asx 200 we are seeing upside of .1 of 1%. the aussie dollar trading in a tight range after the permits are called on reopening of borders once vaccination targets are reached. in singapore, virus curbs have been tightening as cases hit a new record. checking in on oil -- we do not have that right now but brent is moving higher and we have goldman pushing its forecast by the end of this year as the global recovery is seen faster than it has been. offshore yuan holding on at what

he six, a four to gain as markets wait just what we might see in more signs of easing and stimulus amid the concern with the crunching focus. shery: investors facing a growing number of worries from evergrande to china's crypto crackdown. let's bring in our strategist. what is weighing on asian risks? is it still all about evergrande? >> it is a big part of the story. just when you might have been hoping evergrande would be pushed aside, over the weekend we are hearing a potential share issue for their electric car unit seems to of been shelved for the time being, so that is another negative on what it means for the evergrande group. we have not heard much about that dollar bond payment that went missing last week. we saw just how much sentiment

in be driven particularly in hong kong markets bite weakness in evergrande and it looks like we will have to deal with a few more issues today. every turn there seems to be something coming out, there is not a lot of clarity on how much the chinese government is going to support evergrande, and it seems to be on its own for the time being in trying to sort out this mess. none of that is even good even when you see positives and other areas, energy prices rising is obviously helpful for asian stocks. evergrande seems to grind on and every day brings a new twist. it will be tough for hong kong to start a rally. haidi: also weighing down is the yen, is it all about the fact we have seen japan being left out of the global will jump? >> there are a couple of things.

the rising treasury yields are typically bad for the yen, but you usually see dollar-yen will fire when you see the treasury curve again. energy prices as well, crude oil is higher again. this morning goldman sachs is looking for $90 a barrel. the yen weakens when energy prices are rising but japan is a big importer of oil. for japanese stocks, the energy sector within the topix is doing well, so there is good and bad for this. a weaker yen helps, so it is not entirely a bad story. shery: this chart on bloomberg showing despite we saw in treasury yields last week, especially on thursday that huge jump, which takes me to the question of the day, al volatile will yields be this week?

-- how volatile will yields be this week? >> we will see more action in that respect because if you look at where 10-year gilts were they are relatively close to the low end of this year's trading range and you have some analysts thinking you will return to that 170 area you saw in the first quarter or possibly 2%. the fed has not started tapering yet. there tapering timetable appears to be a short one, so you would expect yields can continue to rise. reflation trade seems to becoming popular again, we saw that movement gain rotation back to the stocks that benefit more as economies reopen. you would think yields continue to grind higher. there is plenty of room to go. we would expect more volatility in the bond market.

haidi: mark with the latest and what to watch on the day's trading action. you can follow this and more on our markets live blog. commentary and analysis from bloomberg's expert editors, get exactly what is affecting your investment at any point. back to evergrande, the electric car unit is wrapping its starpointe listing coming in significant debt and liquidity challenges. let's get the latest with stephen engle. another day brings another twist when it comes to evergrande. what are we seeing from the ev side of things. -- things? >> it is not a big part of evergrande group but emblematic of the troubles they're having. it is still down into the units,

and in particular the new energy vehicles had been on the selling blog -- block but they were not able to unload that state -- stake in this joint venture. this was a company primarily selling health service products. it transitioned into electric vehicles, it had a huge run-up in stock. this stock at a valuation more than general motors and ford. you can say safely market conditions were not bright right now for them to at that secondary listing in shanghai. they put out a statement saying they withdrew that listing all the star board in shanghai due to careful consideration. on friday they also put out a statement saying there was no guarantee it could meet its financial obligations and cited the group as a whole

experiencing a serious shortage of funds. the parent has get another dollar bond coupon payment due this wednesday, $45 million on top of the nearly 84 million u.s. dollars by all accounts missed on thursday. very little communication on that front to the dollar bondholders about the state of their coupon payments. shery: another week, another payment. stephen engle keeping us updated . let's get to vonnie quinn. vonnie: canada's foreign minister says the country's eyes are wide open when it comes to normalizing relations with china following the release of prisoners. they spend more than 1000 days

in solitary confinement in china accused of spying. german exit polls show shoals and the social democrats edging ahead of the conservative party. projections indicate the party will win 26% of votes. the christian democrats are set for 24.5%. both men say they aim to lead the country's next government. the imf managing director as given the lending board a more detailed attempt at accusations that she influenced a report in china's favor. they obtained our letter in the board at the committee. she says it is not true she made a key role in china's ranking in

the 2018 report. u.s. house speaker nancy pelosi as pledged to pass a $550 million infrastructure bill this thursday. she says she will put the measure forward on monday. the senate has passed the roads and bridges bill but democrats are divided on a separate bill. she says the amount will be lowered. speaker pelosi: let me say we will pass the bill this week. i promise we would bring a bill to the floor according to the language they wanted to write into the rule. i am never bringing a bill to the floor that does not have the vote. vonnie: global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. haidi: singapore's finance

minister joining us exclusively to discuss coping strategies as the country faces a new wave of cases. coming up next we will be speaking exclusively to's gupta -- sinjay gupta. this is bloomberg. ♪

shery: southeast asia's largest bank as relic this year with optimism but it is emerging from singapore's worst economic contractor -- contraction in days. the lender was named the world's best bank want euro money not just for surviving the pandemic and staying profitable but also for launching new exchanges around digital assets and carbon markets. let's cross over to our correspondent for southeast asia standing by with the men who leads dbs.

>> a gorgeous morning, piyush gupta, dbs group ceo, always good to have you on the show. it has all been about digital, you pumped in billions of dollars to upgrade your technology. talk to us now, it is about unlocking value. does it make sense to be splitting off your digital bank from your traditional bank? >> we actually gave some guidance. we think we are in a good position today to consider some of what you suggest. if you look at that journey and the last seven years, we made a concerted effort to digitize the court banking operation. we have built a lot of technology muscle, we have a

very capable midsized technology company, so architecture, data, we have done a lot of that, and you can see that in our market shares, broader outreach into our customer base. looking forward we do think there are a couple of additional opportunities. one opportunity is leveraging our technology. in the course of the pandemic we have used some of our technology muscle to create new business activities. we launched an exchange in partnership with some partners. we launched a crypto exchange in partnership with a foreign exchange. we launched the company, which

focuses on using blockchain. each of these leverage our technology to create new opportunities. at the same time we have a lot of capability inside the bank, which is invisible. our money transfer business is a case in point. we have a lot of good volume, it is a very profitable business. give it a life of its own in a separate legal entity, we think that will be better price discovery and value creation, so fortunately the weight we have constructed -- >> might you spin off your digital bank the way another commercial bank is doing? >> think about what they are doing. they are doing exactly what we have been doing.

they had to create a holding out of the asset, of which the bank will be one. we only have the structure, we have a holding company, the bank is just one aspect of the holding company. the crypto exchange, the carbon exchange all reside within dbs innovation, so each of these are an entity that can raise its own capital. the additional thing the commercial bank announced is they will take some components of the core bank and spin it out into the future. we might be able to consider doing it first. [indiscernible]

>> i want to pick up on the platform that allows for crypto trading. i am wondering of what to make of china's crackdown on digital assets, digital trading, your thoughts on that. >> this journey is going to take time. these are not easy transitions to make. there is a pathway for having digital money. it comes in the face of policy challenges. central banks will have a role to play. store of value might also see

some choppiness, but i do think it has got some rules. if you look at what we have done, we have taken a partial approach, keeping an eye on the landscape. we have been delicate to make it available for credit investors and institutions, and we are trying to proceed with it that allows us to benefit. >> china's clampdown as been a black swan for investors for the most part of the year. how exposed are you to evergrande, and what provisions are you making for it? >> we are not exposed to evergrande is the short answer.

our strategy on china has been built on building independent credit decisions and credit underwriting. we do not rely on notions of too big to fail. we have not had any material credit. you call it a back sworn, the timing -- swan, the timing was unexpected, but the motion [indiscernible] around many other sectors, i think the writing was on the wall. it started creating regulations around other sectors. people are trying to see how to

keep the industry more regulated broadly. >> despite what you are saying could evergrande be a systemic risk for the asian banking industry? do you see that having an impact? >> i do not think a lot of banks are exposed. total exposure about $20 million, and i do not think that will destroy the asian banking industry. i do think one thing, the recognition we been doing for several years as the recognition that counter risk and china is important. i think a lot of investors are going to be much more careful

relying on size and too big to fail. in terms of the amount of money that flows in china, in the medium term that will be a good thing. >> always a pleasure to speak with you. there you have it, the group ceo for dbs bank named best bank and digital bank. haidi: piyush gupta speaking with husband him. -- and the two imprisoned canadians. this is bloomberg. ♪

haidi: getting to one of our top stories, china putting on it a hero's welcome for the free executive three years after her arrest in canada. let's bring in our asian government managing editor and look at the jubilance of her arriving. claims of victories on both sides, what does it say about the effectiveness of hostage diplomacy then? >> it certainly gives the perception that it was successful from the chinese side of things. the u.s. maintains there was an independent process. the waters were muddied early on by president donald trump when he links her case to ongoing trade talks, so that did not help the perception of things at all that this was political and

was not just an independent judiciary process. china clearly link the two cases all along, and the fact that both michaels were released is telling it itself. shery: someone was also framed by u.s. prosecutors as an admission of guilt, right? what is next for huawei? >> from the u.s. perspective it basically shows how who always -- huawei operates, that they are there to undermine financial sanctions around the world. they see this as a win following the business reputation. as far as huawei they frame this as a political attack. china of course rejects u.s. unilateral sanctions around the world.

they say this is a political case to begin with. the restrictions to remain. shery: our asian government managing editor with the latest on huawei. coming up next we will be speaking to singapore'

vonnie: this is "daybreak: asia ." elon musk is addressed china' is world internet conference reassuring beijing about his company's commitment to invest expand their. the summit was opened by the vice premier delivering a promise from president xi jinping that china will work with all countries to create a vibrant digital economy. also participating remotely in the event were ceos of intel and qualcomm. chinese police have arrested the chairman and ceo of a company.

the two were detained by police for suspected crimes. the acquisitions became a symbol of access. the company will be taken over by the government. the influential sister of north korean leader kim jong-un has reached out to the south. in a statement she says there was a mutual desire to achieve peace. she had earlier said the south's proposal to officially end the korean war was interesting and a good idea. australian prime minister says states cannot keep what is closed once vaccination targets are reached. cases are low, and australia has

been reluctant to open to other areas. the target to be reached is 80% before year's end. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. haidi: -- as committed to its reopening plans and will stay the course to make singapore a covid restricted nation despite cases soaring to record levels. we have the co-chair of the task force on covid-19. >> i am with lawrence wong, the finance minister of singapore. good to have you with us. how confident are you that after this month you will see

stabilization? >> our overall strategy has not changed. we have committed to reopening our economy and society progressively, but our aim is to do this without putting too much stress on our hospital system. we want to keep our health care system under control and avoid unnecessary deaths that may arise when the entire health care system gets overwhelmed. the reason we had to do these temporary restrictions now, it is a difficult decision but we thought we had to do it because our health care system and health care workers are truly facing tremendous stresses during this latest wave of cases. with temporary restrictions now we are going all out to stabilize health care protocols and augment health care

capacity. >> what are your next pressure points, thresholds consider -- before you consider reopening? >> stabilizing the new health care articles, including the protocol for people to recover at home and to bring in more medical centers that can take care of people who need medical care, to augment our hospitals and to deal with a much larger volume of daily cases. we have close to 2000 daily cases. if it were to rise to 5000 we want to deal with that search. >> would it be 200 cases a day, six or seven deaths a day? >> as i said we want to be able to deal with a scenario where cases surge. up to 5000 cases per day or

maybe more. think about it this way. we know 0.2% of cases need icu care. they say the icu should be quite straightforward, but to provide timely care for the dozens the need icu treatment doctors need to admit about 10% of infected persons to our hospitals, because these are the ones the doctors will triage, identify as a more vulnerable person, and they can monitor these patients closely in a hospital setting and provide timely care. 10% of cases, if you have 5000 cases a day 10% is 500 at each person stays at least a week in the hospital. that is a lot of hospital beds. that is what we are trying to do.

it is not just equipment, it is medical personnel as well. we are trying to bring all of that on board so that the system as a whole is able to incorporate a larger volume. >> they have said time and time again expect cases to rise in the government has said we will live with covid. what does that entail? how does that look like? >> we are moving in this journey toward living with covid. that is why you see with the restrictions we have taken we have not gone back to a circuit breaker or lockdown. we are tightening measures so that we can slow down the rate of transmission and use this time to augment our health care capacity and to be able to deal with a higher volume of cases without our health system being overwhelmed. i am quite sure even after we have stabilized our health care system, cases will continue to

be high, the virus will continue to circulate. that is what living with covid means. >> living with covid also means a reopening. what will things look like by the end of the year? >> it is very hard to make predictions. >> travel without quarantine? >> we are committed to continuing toward our plans toward a reopening once we have stabilized our health care protocols and strengthen our health care capacity. these are the two goals we are trying to achieve and we are sparing no efforts to get this done. we have brought in reinforcements and health care workers are going all out to strengthen the system. we will continue with our reopening plans and that will include freeing up or easing

local restrictions, but it will certainly include travel, and that will include expending -- expanding travel lanes. more than 1000 people have traveled on these lanes. it shows we can travel safely without quarantine, so we look forward to expanding them. >> it looks like it could happen by the end of this year? >> it could. even out the possibilities of expending -- expanding travel lanes. >> there is a sense of conflicting viewpoints on how singapore should handle its reopening, and that is within the leadership. is there consensus on how singapore should move forward? >> definitely because the task

force deliberates over every decision very carefully and we consult with our advisors. this decision was a difficult one to take. we did not make it lightly. we know it would cause of, frustration, and anger among many people who had been looking forward to continued we opening. we looked at the data and evidence together with our nickel experts, we felt there was a huge risk of the health care system becoming overwhelmed , and we have to protect the health care system, and that is why we made the decision we did. >> there is been a lot of frustration, expatriates and locals alike. is there a concern it could lead to a dwindling of trust in the leadership? >> we are always concerned, we do not take the trust that people have in their government for granted at all, and that is why i said we consider this very carefully, and we had no choice,

because this was a situation where there were indeed a lot of strains on the health care system. we think everyone is understanding the measures and we hope everyone can rise in solidarity with our health care are facing a lot of pressures working in recent weeks to deal with a huge surge in cases. >> you just announced a new aid package to of those impacted by the pandemic and you said before the government will refrain from dipping into reserves again. should the pandemic continue, the pain persists, would you reconsider that? >> i have also said before that the government will not hesitate to use the full measure of our fiscal power, including our reserves if the need should arise. if there is an emergency scenario and the economy starts

to go back into a recession, there is no doubt we will make full use of our fiscal resources to help businesses and workers. but if we are able to continue with our reopening plan and the economy bounces back, as we are projecting this year 6% to 7% growth we should exist within our means as much as possible, and that is a fair and judicious way and responsible with also of managing our fiscal balances and way of balancing between future needs of the present and future generations. >> will it be at risk given where we are in the economy? >> npi looks at the economy very closely. up to now we still believe 7% growth is achievable. we need to understand a large

part of our economy is external. more than 70% of our sectors are outward facing, so the key is not so much domestic demand but external demand. as long as external demand remains strong in the major economies we should be able to achieve 6% to 7% growth this year. >> a possible wealth tax, where are we on that? >> the prime minister never rules out any revenue options. we have wealth tax in the form of property tax. we consider all options as part of our budget every year, and the key ultimately is that our revenue and tech system remains one that is fair, equitable, and progressive. >> what is being considered and what are the key considerations on whether or not to carry out this wealth tax in the new age

of taxing wealth? >> you are asking me questions about what i might say in the budget, which might be premature. the first consideration is we need to ensure we have sustainable finances. we want to uphold a culture of stewardship and sustainability in singapore. we have the reserves as our rainy day fund meant for national emergencies. if there is no crisis, no emergency, we should be able to retain recurrent expenditures using recurrent revenues. expectations are rising to corporate and aging populations, social movements. within the revenue system we have to make sure the overall

taxation system is one that is fair and progressive, those with the means are able to pay more. in that context any form of wealth tax that fits into that broader system. >> this is the beginning of seeing china as a growing risk. over the weekend we saw out china -- on cryptocurrencies. your thoughts on that coming from a country that is pretty progressive and it looks positively at digital assets. >> china will have its reasons for managing some of these concerns that it has. we watched over closely and not just the regulatory moves but the overall, broader impact on the chinese economy. so much of our economy is outward facing, and if there is a slowdown in external demand it

can have an impact on the singapore economy. for now, we think china's economy will continue to grow. there may be some impact from various moves has made, including concerns from ever granted recently, but by and large the economy remain strong, it is still going, including external engines of growth, america and europe, and that is why we see optimism in achieving our 6% to 7% growth this year. >> do you see evergrande is a risk and perhaps hindering the growth of digital assets? >> with regard to singapore evergrande does not operate directly in singapore. the direct impact will be very limited. we think the impact on chinese

property developers, we believe the impact will be quite limited based upon our assessment. the question is whether there will be broader spillover effects on the chinese economy. that we are monitoring close link, but overall our assessment remains china's economy will grow strongly this year. >> apart from the pandemic, what do you deem is the biggest risk for singapore? >> for this year? this year, it goes back to the overall external environment. not so much medium-term, but this year's risk remains the pandemic and the concerns you may see new waves of infections everywhere around the world. it could happen in the winter season and that might prompt new

restrictions and letdowns and other countries, and to the extent that happens it may trim demand in economies, and that in turn will affect singapore's economy. >> always a pleasure to speak with you, sir. handing it back to you. shery: great conversation, coming up next china bans all crypto transactions and vows to root out crypto mining too. we take a look at the fallout. this is bloomberg. ♪

shery: let's delve into renewed efforts by beijing to correct at digital currencies, two crypto exchange giants have cut back on chinese users. su keenan joins us with the latest. >> they are making it absolutely clear no doubt that it is illicit behavior to engage in transactions involving cryptocurrencies. chinese regulators have been talking for months, the release on friday it was from the central bank along with nine other government agencies, and this message specifically called out offshore exchanges targeting chinese users and banned them

from hiring locally for a number of roles. we did see some crypto's drop as much as 5% or more. there has been a rebound, bitcoin still under pressure, but what we saw over the weekend was two of the world's biggest crypto exchanges halt registration for new chinese users. one will retire chinese accounts and the monster come to comply with the latest crypto ban. trade for bitcoin, you can see where it dropped over the weekend, came back, and now under a bit of nurser. one company said it lots of chinese ip's, but clearly this is being viewed by many as one of the more serious messages to come from beijing yet, and the

message is clear china is not fooling around here. bitcoin has been through a number of obstacles and always manages to weed out somehow and that is what supporters are pointing up. haidi: one of them including a billionaire amongst them still optimistic on crypto. >> novogratz put out a tweet on friday talking about the factors causing crypto's to be under pressure as of late, and china was one of them. china's reiteration of its crackdown was just one factor, the fed putting taper into motion. two other key actions, and that is why he believes price consolidation is continuing at this point but joining others in saying if bitcoin and ethereum can stay above important levels the market should be in good

shape. you looking at the bloomberg galaxy crypto index that tracks some of the biggest digital points. they always back , and going into bloomberg, you can see it has been generally higher. that is why they remain highly optimistic. last week, invesco said it is partnering with a firm to do etf like funds. haidi: we will continue to watch when it comes to crypto related stocks in this part of the world for that reaction. sophie: asia and crypto stocks mixed here descendant the world, the sun rising in japan. 2% in seoul. switching up the board for eight broader view of the market, a mixed picture with energy leading the rise.

we have what is going on in sydney, focus on m&a deals we have. a company agreed to his two-week -- to a stake in the lithia market. switching up the board, we are seeing moves this sunday morning, nikkei getting a boost at 2% higher while the kospi is gaining ground. asx 200 being led higher by banks. nikkei getting a boost from -- electronic and discretionary names, airline stocks down and tokyo as well. we have those segments moving in anticipation of japan lifting its emergency in the country. jp morgan, as we are seeing vaccinations ramp-up they are projecting china growth will

come in at a percent next quarter. consumption gets a boost helped by policy support. you have the upcoming election on thursday. germany's vote very much in focus, a pair of earlier gains, futures getting grounds. yields up to 40 following the fed's hawkish messaging. haidi: let's get a check of headlines, the right hailing unit is in talks with investors for another series of funding after it raised almost $600 million earlier this month. they say the next round may be held in the first half of next year. the company says it is currently

number two in terms of daily trips in the chinese market. evergrande is dropping plans to list all the star board. at the company says it made the decision after careful consideration. ev units cited a shortage of funds. shery: given that we are in the middle of the ongoing saga at evergrande, it may be difficult to imagine what the next crisis could be, but we may be already seeing it unfold, we are talking about china's power crunch. we continue to see a surge in gas prices, gold prices. the very strict target by beijing in order to control emissions and pollution and that is leading to beijing having to crackdown on power consumption, factories being order to curb activity or shut down.

haidi: market attention is laser focused on evergrande, the potential shakeup in that sector, and it does seem like another crisis on the main event is something the chinese economic recovery, already shaky after the pandemic, lots of questions over the strength of the consumer as well as manufacturing, is it one more seen policymakers need to double? shery: the nikkei reporting it is hitting iphone and testing production in the country as well. coming up, we will be discussing all of these challenges china faces. one of china's early crypto moguls joins us to discuss the crackdown on digital currency. more context on the evolving evergrande crisis from our guest. that is it for "daybreak: asia."

we look ahead to the start of trade in hong kong, shenzhen, and shanghai. standby for bloomberg markets open. this is bloomberg. ♪

♪ it is 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i am yvonne man. we are counting down to the start of trading the chinese mainland and hong kong. the risks to the china's recovery are piling up. the pboc bands currency transactions, but the markets seemed unfazed. we will discuss that with our guest.