haidi: a very good morning. welcome to "daybreak: australia." i'm haidi stroud-watts in sydney. sophie: i'm sophie kamaruddin in hong kong. we are counting down to asia's major market opens. shery: good evening from bloomberg's world headquarters in new york. i'm shery ahn. the top stories this hour. treasuries fall as investors eye the possibility of a more hawkish fed. the nasdaq underperforms with investors rotating away from big

tech. haidi: two fed presidents stepped down after embarrassing stock trading revelations. we take a look at what the implications are for the central bank's policy direction. shery: and china's power crisis is hitting global supply chains as factories cut production to conserve energy. this is a picture across wall street. we are seeing u.s. futures muted at the open. and they're a little bit of pressure right now after the suspend -- s&p 500 fell. we did see fed offenses again reiterating that the tapering is imminent but of course separate from rate increases. the dow which is more tilted toward cyclical shares outperformed. it's all about that great reopening trade. small caps also were higher. we're talking about the russell 2000 outperforming the broader markets. and we continue to see more sign of demand data showing that orders for u.s. business equipment rose for a sixth consecutive month. we had w.t.i. also above $75 a barrel for the first time under a little bit of pressure in the asian session. but of course we have the nasdaq

100 also underperforming. given that concern about stretch valuations. as we saw those treasury yields spiking. take a look at this g. tv chart on the terminal especially the five-year yield right now. which we're seeing in the line in white. it touched one point 2019 high a five-year yield is very sensitive to that monetary path guidance. the 10-year yield also breaking above that 200-day moving average. briefly topping 1.5%. a level that we haven't seen since june. the chart analysts now saying that the next resistance line could be the fibonacci level at 152 but haidi, we're also toward the end of the session looking at some of those retirements from the federal reserve. two regional fed presidents retiring after some embarrassing stock trading. news that we saw earlier this month. what that means is that we do have six seats on the fomc that will open in the coming months.

and with some centrists and moderately hawkish people leaving, we could see perhaps a more dovish fed. of course, we have to wait for those replacements. haidi: yeah. the hawingish side of course kaplan, his replacement will we get a more dovish fed and what does that mean for the broader trajectory, right? there are also lots of questions saying it's an opportunity to add more diversity onto the makeup of the fed as well. but of course the other big story, shery, that no doubt the fed and every central bank will be focusing on is what's becoming a global energy crisis. it began in europe. we saw that shortage of natural gas. analysts now saying that we could have eating, blackout problems going into potentially a very cold winter. and it's not just europe now. we've been talking about the energy crisis in china potentially already causing blackouts in homes. not just factories n. part of the country, parts of the country and of course when it comes to india as well, we're hearing that some of the coal plants are running dangerously low on shipments and inventory. shery: we've been so focused on what's happening in the monetary

policy side of things, on the evergrande that perhaps we have been disregarding the fact that this could be the next crisis for china, right? and at the heart of it are those coal prices. and it's really striking how two thirds of china's energy mix is still so dependent on the dirtiest of fuels, coal. and those prices have risen more than 40% just this month. so we'll be watching what that means for the rest of the economy. we have seen some downgrades of china's economic growth because of these concerns. and let's see how we're tracking with the power crisis there. soph looking at this as well. sophie: yeah. when it comes to the downgrade we see from forecasters, goldman joining projectors in doing so given the energy crunch is weighing on industrial production and the overall economic activity for china. so they now see zero growth in the current quarter compared to the previous three months and they have lowered their 2021 estimates to 7.8% on a yearly

basis from 8.2%going in the fourth quarter goldman sees considerable uncertainties when it comes to evergrande as well as those energy intensity targets and the degree of policy easing. that also has a question mark on that when it comes to cushioning the downside pressures from these risks which pulling up the chart on the terminalis also denting demand for industrial metals as smelters and steel mills suspend production. but with supply disruptions goldman does see a deficit for nickel this year. so they have raised their price targets for that metal. but it is lumme number that has the most bullish fundamentals among base metals according to goldman as it's already in a clear deficit with in a aggressively widen over the next two to three years. we should push aluminum into an era of price strength and it could top $3,000 before too long in london. despite the upside anticipated from metals, switching out the chart on the terminal, aussie mining stocks are set to halt their longest streak of quarterly gains to december -- since december of 2017 and the iron ore slump driven in part by china's curbs on its steel

industry on the mainland. and the materials subindex falling 12% this quarter. that would be the first down period for the sector since march 2020. so the earnings outlook certainly looking to be impacted, haidi. haidi: yeah. and we do have potentially geo political tensions and some saberhagen rattling coming into the fray the start of trading here in asia as well. japan now saying that north korea may have launched a ballistic missile. north korea on tuesday firing at least one unidentified projectile into the sea and concern by south korea's joint chiefs of staff as well as japan as well. this as we had just stated earlier had reports that north korea was warming to the idea of a summit proposal. so we'll continue to be watching that in the day's trading. let's go back to our top story. we've had two regional fed presidents, boston's eric rosen green and dallas robert kaplan retiring following embarrassing revelations of stock trading last year. all of this comes as the fed and

officials there reinforcing messaging on imminent taper moves. let's go to katarina. so we know the reasons for why they're stepping down. talk us through the potential implications when it comes to fed policy trajectory. any kind of change in tone given that kaplan in particular was on the hawkish side of messaging? >> yeah. i mean, this comes at a very interesting time. i think you mentioned, you know, in the coming months, we have a few other positions opening up. and on the board of governors in washington. so total, this will bring us to six positions opening. that includes the one vacancy that is currently on the board. so yeah. it could mean a potential change and a potential shift to a more dovish fed. i think we will probably see another somewhat at least

hawkish person appointed to the dallas fed. that's kind of customary. and, you know, for the region itself, it -- that would be a normal pick. but of course with boston seat opening up, which tends to be more dovish, and with the other four positions at the board and those being biden appointees, you could certainly see more of a shift to the dovish side. shery: and the appointments of regional fed presidents a little bit different from the appointments of board of governors, right? so what role can we expect diversity to play here? >> yeah. absolutely. for the regional fed banks, it's their board of directors that run the whole search process for a new person. and then they make the appointment and just have to be approved by the board of governors in washington. whereas for the board itself, it's presidential appointment

and the senate confirms it. so quite different processes because the reserve banks are, you know, considered independent entities. so yeah. i think you could potentially see questions around diversity come into play here. there have been very few diverse presidents in the federal reserve's history. both at the -- both at the board and also at the regional feds. we just have one currently -- currently one black president and one asian-american president. and we have three women right now. so there could certainly be more calls for diversity. the dallas fed, for example, this district is 40% hispanic, so perhaps that could be something that comes into play. haidi: fed reporter katarina sarava with the latest on the fed. the breaking news at the moment. the senate republican lawmakers do have the votes to block the

debt limit and the government funding bill. remember, this was passed by the house. it was very much expected the senate republicans would block the legislation to suspend the debt ceiling and temporarily extend government funding. now, without this bill, this means that currently the government funding runs out at the end of the month on september 30. so lawmakers have to reach an agreement in order to avert the partial shutdown. but right now, we're hearing that senate republicans do have the votes to block this bill. now, grappling with record high energy prices not the only region affected. millions of people around the world will feel the impact of soaring natural gas prices this winter. in china, growing fears over energy security have prompted one of its biggest importers to outbid european rivals. shipments shifting already a tight global market. for this we are joined by bloomberg's energy editor joe

carroll. joe, how dire is the situation right now? joe: normally chinese state-owned firms will sit out a high price environment like this and wait for things to calm down. and they did just that recently. but then they jump back in the market and that -- and bought at these really, really -- these really elevated prices. and that has shocked a lot of folks and it's alarmed a lot of people. because it indicates that these very deliberate and massive enterprises don't see -- don't see a letup in the supply tightness anytime soon. the weather will get very cold in the next few months. in northern china lure -- china you're already seeing blackouts so a lot of alarm out there. haidi: structurally could we see as being an alleviation as we go into a seasonally heavy period for the market anyway? joe: north america is already exporting as much natural gas as it physically can.

the l.n.g. terminals, you know, are already running at full capacity. if you drill a well right now in texas or oklahoma or someplace like that, the gas you produce will not show up before the end of winter. it's just -- that's the physics of gas production. so there's really no way to add enough supply for either asia or europe. so asia and europe will be trying to outbid each other all winter long for l.n.g. cargoes. the only sort of -- the only thing anyone can resort to is pray for a mild winter. haidi: energy editor joe carroll there with the latest. let's get back to that evergrande crisis. and deepening troubles, and one of the deep pocketed allies and poker buddy joseph lao of chinese estate holdings is further selling down his stake in evergrande. let's bring our chief north asia

correspondent steve engel. we've seen he and his wife part of the big poker club, big spenders and big sellers, cashing in. >> yeah. that's right. it's high stakes poker for sure. and i guess when the deck is stacked against you, you save -- what chips you have left for a better hand. of course, down the road. and obviously evergrande shares have been sinking. and this has been a key ally of evergrande. as you said, part of the clique, the poker buddies, joseph lao and new world of development chairman henry chung and others who have kind of backed the billionaire founder of china evergrande through this crisis. but again a slow moving train wreck and wealth descruks of course. so what we got is a statement of the hong kong stock exchange is chinese estate holdings run by joseph lao and his wife are further selling down their stake, now down to 4.7% from 5.7%.

also in that statement, the c.e.o. chen woi han is selling out her personal stake. last week we got a statement from chipa estate holdings saying if they did liquidate their entire holdings which they have 4.7%, they could be sitting on a loss of about $1.2 billion. the stock, though, evergrande was up yesterday. we got a little bit of spattering of news in this slow-moving train wreck obviously. there's reports that the -- fairly burgeoning and bright spot in evergrande universe if you will, that's the life insurance division, could fetch about $600 million if it is sold. but again, the key assets have not been sold yet, including the sky scraper here in hong kong as well as the new energy vehicle unit. but again, a little bit of good news, also pboc injecting more liquidity as we head toward the end of the quarter and the liquidity crunch here because ex-asker bated by evergrande --

ex-asker baited by evergrande. and saying they would help protect home buyers' lawful rights. haidi: stephanic there will with the latest on the ever -- evergrande. >> the leader of germany's central left social democrats is calling on potential partners to join him in a new government as soon as possible. olaf scholz appeared to appeal to the greens and the pro-business democrats to back a three-way coalition. the can tate for chancellor angela merkel's christian democrat-head bloc arman latchet will try to fornlgt -- armin laschet will try to form a majority. a pivotal trade meeting between the u.s. and the e.u. this week will be narrower in scope than originally planned. the content of a joint statement outlining the results are still up in the air. sources tell us that disagreements among e.u.

countries and or behind the changes we also hear that france would not agree to the draft conclusions for a trade and technology meeting plan for wednesday with the u.s. bloomberg has been told that u.s. treasury secretary janet yellen is declining to return calls from the i.m.f. chief, accused earlier of improperly intervening in a world bank report in her prior role there. the communication breakdown comes ahead of the i.m.f. and world bank annual meeting starting in october. and finally, the white house is refusing to link the u.s. settlements of criminal charges against huawei executive and china's released hours later of two canadians accused of spying. the biden administration says the u.s. would not refer to the episode as a prisoner swap. and it also would not be brought

into the question of whether china would be encouraged to seize foreign hostages in a legal dispute. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2,700 journalists and analysts and more than 120 countries. i'm sue sue. -- su keenan. this is bloomberg. haidi: still ahead a small australian tech company with ambitions for battery technology will be seeking to lye finniear ahead of their listing on the a.s.x. the market outlook from kramer capital research. hillary kramer tells us how she's playing the spike higher in global yields. this is bloomberg. bloomberg.

georgina georgieva

>> i think it's clear that we made substantial further progress in achieving our inflation goals and also very

good progress toward maximum employment. and assuming the economy continues to improve as i anticipate, a moderation in the pace of asset purchases may soon be warranted. shery: a hawkish message sending yields spiking higher. our next guest is a long-term bull on markets but is staying cautious short term. to discuss with kramer capital research c. ex-o. hillary kramer. hillary, it's always great to have you with us. let me ask you about tech and stretched valuations because the g. tv chart on the bloomberg showing that the 20-day correlation between yields and tech were hugely negative. just the last few months but turned less negatively correlated and right now positive. so if you have tech selling off on a day when you have treasury yields spiking, how much is it really to do with those stretched valuations and what else could be plaguing this sector? hillary: it can always be one specific company because the big

one, the apples, the microsofts, and facebook have such a big impact. in this case, it's really amazon. amazon is the pinnacle and a number of reasons and pressures on amazon which are making it go down. namely of course we have the jammed up transportation system. but we also have new leadership there and competition that is intent on making their way in. so that's what i see in tech. but we're also seeing a rotation. and a lot of the rotation, there's plenty of liquidity in the market. the rotation is out of -- is out of stock and ensure enough gun powder left when we do have a 10% to 20% correction which we're due because of shery, inflation, stock price -- shery: are you liking the reopening trade then?

hillary: yes. i am. but at the same time, i'm looking for the companies that are going to do well no matter what is happening. and the ones that haven't had very good performance since july. namely everything from citigroup which is trading under book value, three-minute which has 60,000 products out there, one that i love is ingredeon, that's the starches and sugars, people haven't been paying to this 2.8% dividend yield and ingredeon, in everything you eat, a ballgame and watch the boston red sox beat the yankees a. hotdog, the ice cream, all made with ingredeon products. but the meat alternative, inagreedion the main ingredient in those. that's where our research comes in. and we think inagreed --

ingredion is a great place to hide and molson coors, a 2.8% dividend yield. they have a beer blue moon which is literally changing the face of the company. they brought back their -- that dividend. and they've done very well with bringing in their influencers like the rock, dwayne johnson. and yes. shery: there's a star of the show today. haidi: i want to ask you about the dog days of summer. puns aside, going into earnings season, is this a real tantrum you're looking out for? hillary: it's a real -- what? haidi: a taper tantrum, do you see that in the earnings expectations going forward? hillary: the earnings have to be lower. because we're going to have to build in, right, a corporate -- a corporate tax. it's inevitable.

it has to happen. and every company will find a loophole. but it's going to be built right in there and change earnings and we'll hear a lot about inflationary pressure. that's -- like a company like three-minute i just mentioned. they've already come out and said -- electronics, we don't feel that inflationary pressure. that's something else that i'm looking for. but earnings are going to be tough. because we're going to hear about companies that can't get their items on the shelf before christmas. there are 62 tankers filled with container ships just at the port of los angeles alone. it's too late to get them unloaded and to do the transportation. and going to be -- it will be cold, you know. i'm joking now. santa brings coal. but i think that might be what we find in our stockings after all. so i think it's going to be a tough -- what we're looking for, we're looking for the forward message.

everyone is looking for things being better. delta variant having improved. and that the most -- for the most part the pandemic being behind us. shery: hillary kramer of kramer capital research joining us of the we have lots more to come on "daybreak: australia." this is bloomberg.

haidi: let's take a look at the day ahead for australia. we're expecting retail sales numbers for august. set to take a hit from widespread virus lockdowns. oil and gas producer beat energy holds an investor briefing and banks also in focus. the report that australian josh friedanberg the go ahead to crack down on high-tech home loans. plenty more ahead including coming up next america's busiest port by volume is seeing record

numbers of ships at anchor. we go live to the port of l.a. with the latest on this aspect of the global supply chain crunch. lots more to come. this is bloomberg. bloomberg.

>> so far this year we've seen many events, education, casino, and property. so i think diversification can help you lower your risk on your overall portfolio. >> medium term are you seeing more risk and reward in the high yield space in asia? how are you viewing this right now? are there buying opportunities given just the selling we've seen? >> this time, it's a bit different property cycle. because in the last, when you see this tightening measure, always demand there, right? the government trying to suppress this demand. but this time, we're seeing a competence issue. like a buyer strike because of the sentiment, evergrande, and people don't want to buy. and other -- they want to get

cash. cash. haidi: you're watching "daybreak: australia." i'm sue sue with the first word -- su keenan with first word headlines. robert kaplan, dallas fed president, has joined boston's eric rosen green in early retirement. both had been under scrutiny over security trading activity last year. kaplan will depart on october 8 saying the recent focus on his financial disclosures risk becoming a distraction. the boston fed confirms in a statement that rosen green will retire this week due to an ongoing health condition. meanwhile, president biden has received a covid vaccine booster

and says he will press for new mandates to improve the u.s. inoculation rate. the 78-year-old had a fiers shot under federal guidelines allowing those over 65 to get a third shot. meanwhile the c.d.c. has raised its covid travel warnings for singapore and hong kong by one month citing a high and moderate risk respectively. japan will reportedly lift its virus state of emergency from friday as new infections, broadcaster n.h.k. said regional authorities may keep some restrictions in place. more than 57% of japan's population is fully immunized. lifting the emergency will be among the last of prime minister yoshi's term in office. his replacement as ruling party leader will be selected on thursday. and china central bank is promising to ensure a healthy property sector after evergrande's debt crisis sent

shock waves across global markets. the pboc says its quarterly meeting last week agreed to work to safeguard healthy development of the realities market. and to protect home buyers' rights. the central bank also says it will step up coordination of monetary, fiscal and industrial policies to prevent risk. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2,700 journalists and analysts and more than 120 countries. i'm su keenan. this is bloomberg. shery: a massive backlog of container ships is waiting to dock at l.a. port which is the busiest in north america. bloomberg's ed ludlow is standing by at the report for the latest. ed, so how bad is the situation on the ground? >> it's bad as it's ever been. and it's not just that there are more than 60 container ships at anchor. it's the time they're spending there. almost nine days on average before they're able to come into the port and be unloaded.

and they can't unload these containers quick enough. that's partly by a shortage in truck drivers. but also some downstream backlog including some key u.s. rail terminals like los angeles, detroit. so that is the situation as it stands. the question is how do we resolve all of this? how do we clean this you? unfortunately we're able to speak to port executive director gene seroka and what he had to say about the fixes going forward. >> flout the supply chain, asia factory output is at record highs. we're still behind on orders. increases as much as 30% in vessel capacity in the tran pacific have been deployed. yet we still don't have enough space. cargo coming to the port is like taking 10 lanes of freeway traffic and compressing them into five. cargo is sitting for longer at the port than normal as it is at warehouses. we need to speed the velocity throughout the domestic supply chain as well. >> the issue here infrastructure, container liners

will say the covid-19 pandemic has basically exposed shortcomings in ports like l.a. is that what the problem is here? >> there's no one answer, ed. but infrastructure has been a topic of discussion for some time out here. in fact, over the last decade, the u.s. federal government and congress has out-invested the west coast ports at a rate of 11-1. that's more than $11 billion that's gone to the east and gulf coast versus a little more than $1 billion here on the west coast. that has to change. >> talk to me about labor pressures. you have a lot of different arms of the port working in synchrony, the dock workers, truck drivers and warehouse. >> one are our dock workers and they have been on the job six days a week since the pandemic began. second, is the fact that that work being done on the docks has improved vessel productivity by 50%. since the surge started last summertime. we're moving more containers on and off ships on average per

call than any other part in the world. second, the truck drivers. only about 50% of all truck drivers are calling here at least once a week. those are registered. and vessel capacity has increased by 30%, truck capacity has increased by only 8%. the last segment is the warehouse worker. we've got more than two billion square feet of warehousing from the shores of the pacific out to the desert region. they're overflowing with cargo. we need more folks on the job and expand their work hours just like everyone else. >> the final question for me then is how does this all get better? do we need to make more investments in infrastructure? is this an issue of hiring more and is the federal government getting involved? how do we fix this problem long term, gene? >> yeah. short and long term answers, ed. number one, the federal government is involved at the highest levels. the president's executive order on supply chain including the look at certain commodities like agriculture, is front and center every day. bringing on port envoy john pacari, the former u.s. department of energy deputy

secretary and secretary of transportation in maryland has been an absolute light on the subject. and has been working around the clock to help us out as well. >> gene, it's guy, we are clearly seeing a huge amount of demand for your services at the moment. in a year's time, will that demand be as high? if you invest now, are you going to invest into a slowing market at some point as we start to see some of this extreme demand fading from the system? >> yeah. good to see you, guy. great question. what we see is that at some point in the future, the import cargo will plateau. if we can get past the delta variant, the mu variant, we'll go back out and start spending discretionary income in the service sector. we're not quite there yet. but at the same time, we see a strong market through an early lunar new year in the first of february. retailers are telling me following that holiday if there really is one, because of all the work at hand, they're going to focus on replenishment in the second quarter of 2022.

>> that was a discussion that was very focused on what's happening here in the western united states. but it's happening globally. and of course some of the delay we're seeing is happening at the point of origin in china and other terminals in asia and what he went on to say is that we need to match that activity that's coming in with a rampup in hiring. and clearly the takeaway from the interview, guys. haidi: bloomberg west coast reporter ed ludlow there. shery: and given all of these supply chain concerns, we do have those commodity prices just shooting ever higher when it comes to the w.t.i., it's holding at that $57 a barrel level. brent at the highest level since 2018. here, just beneath that $80 a barrel level, that demand for alternative to nat gas continuing with goldman sachs

raising their crude forecast by $10 a barrel for brent to $90. nat gas at the moment around that seven-year high. we continue to see a thermal -- see thoarm thermal coal surging by more than 40% this month, given this demand coming from china. aluminum also an energy-intensive metal that's already trading near a 13-year high. actually have more on the impact of china's energy crisis and get over to sophie for morning call. sophie: markets, indications of china's power crunch on top of evergrande pantheon's chief economist saying the energy crisis will have a greater short-term impact than the developers' saga given we have more widespread electricity rationing seen this month as well as next. and flipping the board, pantheon, a significant economic drag will be seen from even a temporary reduction of -- of 40% to 60% of output across the provinces, and 48% of industrial

value added activity. with the first sign likely to show up in this thursday's manufacturing p.m.i. dat with a sub 50 print possibly guaranteed for the first time in 19 months. and switching out the board once more, pantheon anticipates a ripple effect in c.p.i. and p.p.i. as soon as next month as expected companies mull price hikes in the face of eroding profit marge thans will weigh on manufacturing investment at a time which is inopportune to say the least, shery. shery: we do have breaking news at the moment. we're getting more details when it comes to that congressional vote. the senate and g.o.p. now blocking that bill combining the debt ceiling with government funding. we have seen them having the votes. we weren't -- were very much expecting this. the house had passed this bill in order to procure funding for the government which runs out on september 30. but senate republicans had vowed to block it. and that's actually happened. so we'll be following this

development as it continues. we need to find out how the government will continue to funding its bills. coming up next, the smallest -- small iranian tech firm thinks their lithium battery technology will change the game for energy storage. we speak to its c.e.o., the company will be listing on the a.s.x. this is bloomberg. bloomberg.

haidi: we are getting some breaking news when it comes to s.k. innovation. we are hearing that s.k. innovation will invest $5.1 trillion in a joint venture with ford. we're hearing that they've agreed to set up an electric vehicle battery joint venture with ford. they could increase that investment to as much as 12 trillion yuan. the initial plan was an investment of around six trillion yuan. we had heard that from reporting from the chelsum newspaper. the c.e.o. will finalize that j.v. as early as this week. a small australian tech company with big ambitions for the future of battery technology is listing on the a.s.x. today. our colleague paul allen in sydney with more. paul: it is develop lithium sulfur batteries. it will speed up charge times and extend endurance of batteries in everything from electrical -- electric vehicles to smart phones as well.

li-s c.e.o. lee finniear joining us from brisbane. thank you for joining us. this is small i.p.o. but attracting a fair bit of interest. explain how lithium ion batteries are reaching their theoretical maximum and lithium sulfur batteries could be the next step forward. lee: thank you very much, paul, for having me on the show. lithium ion batteries are reaching their maximum theoretical energy capacity. they just can't do a step change. yet as we go into this cleaner, greener electrified world, we need better batteries. we need higher energy density, we need lighter weight. lithium sulfur has been known for 20 years to be able to do that. the only challenge has been the cycle life has been really low. so they haven't been able to last more than 52 to 100 cycles. and what we've done -- >> yeah. and the way you've extended it, you've embraced some rather

exotic technology, haven't you? and if i can perhaps frighten our viewers for a moment. boron nitride nano tubes. i doubt very many people have heard of these but hard to make and why are they critical to this process? lee: they're absolutely critical because they have some unique properties. they're like carbon nano tubes but they have nitrogen instead of carbon atoms. what they do, they're a nano insulator inside the battery. it helps stabilize the patry chemistry. it helps stop the key things that prevent the battery from having a long cycle of life. and we've been able to harness those by over a decade of research. and university of australia has yielded a way of manufacturing these at volume and at much lower cost. haidi: lee, are you exploring any partnerships to scale up production? lee: yeah. we certainly are. and we've had an amazing amount of in-band interest from the

household names that use products with large batteries. which is great. but we're also looking both beyond our current team and internationally to work with partners to bring that technology together to rapidly commercialize it. haidi: what are you hoping to achieve in terms of the fundraising and the listing, lee? lee: well, i think the listing has been really important. we've raised $20 million in pre-i.p.o. and $34 million in i.p.o. was very well oversubscribed and we're very grateful to all the investors for supporting us in this. and the three key reasons for listing now has been firstly, as we all know, the battery market is really exploding now. we need to put this technology on the world stage as clearly as we can. and secondly, we want to make sure that the australian shareholders get to benefit from this unique australian breakthrough that will make a dumps to the global -- a

difference to the global stage. and we believe we have a two-year runway with that capital raising to be able to commercialize our systems. >> i understand that you're not planning to manufacture here in australia. and you're just planning to license the technology. why is that? lee: well, i think the key thing is there's an awful lot of very big battery manufacturers out there with a huge investment in giga factories and the like. what we're able to do is capitalize on their manufacturing skill, use retrofit their existing production lines to be able to produce lithium sulfur and we think the best way to do that, the quickest way possible not to compete with those organizations and actually to partner with them and give them the benefit of our technology. >> you did mention giga factories which made me think of tesla and you can't talk about your partnerships in detail. but it is interesting because another application of these nanotubes is radiation shielding

for species crafts which makes me think spacex. what are some of the other applications of this technology that you can describe for us? lee: well, it's been quite amazing to see just how many different uses you can put into these. one of our major shareholders, the p.d.k. group, is also applying bnnt's from everything from bullet resistant glass to reduce its weight to advanced aluminum to be able to provide a lighter, stronger aluminum for space and aeronautical applications as well as many other potential applications as well. so there really is a fascinating nano material and we really got our finger on the pulse as far as how to produce it at scale and at a price point that's father lower than has been available to date. haidi: lee, we appreciate your time on such a big day. li-s energy c.e.o. lee finniear. another conversation with a company that's trying to change the game with renewables.

david griffin enjoying us in "daybreak" arab and plans to send power from australia all the way to singapore. we do have some breaking news when it comes to changes at the top. morgan stanley's wisdom kristin retiring as the c.e.o. and joined morgan stanley in 1998. we also saw him really leading from beijing the raising of morgan stanley's stake to 90% for buying shares from china fortune securities behind that deal. and we are now hearing that she is in fact exiting when it comes to co-c.e.o. role. let's go back to e.v.'s now. paulstart, the electric vehicle maker backed by leonardo dicaprio will go through a merger with a company at roughly $20 billion valuation. the c.e.o. told us about his plans to put several new models on the road. >> it's a very important

exciting day for polestar. we have two cars on the road, yes. we have established our system in 14 markets. but there's a big future ahead with three cars coming out over the next three years as expanding into many -- there will be 30 markets targeted in 23. and of course, this big growth story, this expansion of the brand, is really, really nicely supported by this injection of capital. but that access to the capital market. so a new chapter for polestar. >> will part of that chapter be building your e.v.'s in china? polestar two e.v. has a 27% import tariff in the u.s. because it's built in china. how quickly and how aggressively would you be looking to build plants elsewhere? >> we already have -- we're outspoken about the plan for the next car, the polestar 3, being

produced as well in south carolina. and this chart -- factory is up and running and so the polestar 3 will be important first step of polestar. and very, very much -- very simple way of us utilizing that manufacturing footprint that exists within the volvo group. we clearly have that advantage. we can lever it existing footprint, not only when it comes to manufacturing as well as having 500 service points already today and bringing this to the number of 800. this is of course possible because we can use this infrastructure and that exists in a group. we will be producing american cars in america for the american customers. this is as well what will happen over the course of time here in europe. not only for financial reasons or political reasons. it's as well very truly

important for a company that takes sustainability serious. it's the most sustainable way of producing cars if you do it close to the market. haidi: that was our conversation with polestar c.e.o. thomasnlat. this is bloomberg.

haidi: a quick check of the business headlines. a key backer of china evergrande has reduced its stake in the company further to 4.7%. chinese estates controlled by the family of billionaire joseph lau, sought 130130.7 million shares for $145 million. his wife also liquidated her personal stake and part of a group of billionaires who regularly played poker and maintained close business ties with evergrande chairman wai ka yen. reliance in talks to buy $300 million stake in india global content provider grant imobi. it would give reliant strategic entry into shored video content and access to valuable locks for real estate on the affordable mobile phones and developing with google. to hit the market at the end of october. equity partners nearing an agreement to acquire british automation software developer blue prism for about $1.5

billion. and blue prism is set to recommend a private equity firm's bid as soon as tuesday. and this plan to maintain blue prism's u.k. headquarters and invest in research and development. binance is restricting access. it says the curbs include access to deposit services, crypto spot trading, buying and liquid swaps. previously it said it would halt singapore products after a warning from the central banks. shery: and -- shery: we saw fluctuationness bit coin, ether and been a really wild coaster ride. we had bit coin at one point very close to that 44,000 level in the new york trading session. then we had a -- down and now back above that 43,000 level. and also when it comes to ether, we had it above that 3,100 level. from last week. right now, below that $3,000

mark. this coming as really people are trying to digest what china's announcement means given that we've had so many different announcements coming from china. right now the pboc closing that loophole that enables citizens to maintain accounts with offshore exchanges. take a look at some meme stocks as well. a.m.c. seeing its best day in about a week. gamestop seeingity best day in a week. after hours a.m.c. under a little bit of pressure. going -- going the opposite direction, actually, and seeing its worst day in about a week as well. haidi, really it was very interesting when it comes to following these meme stocks. what -- the potential that it has for some of those fraud issues, right? we saw the s.e.c. actually enforcing some action because of meme stock, wash trading schemes. this would be trading with yourself. it seems to be very technical. but the point is that robin hood c.e.o. vlad tanev made a point

in a congressional hearing before and these traders took the idea that they could actually make money by taking advantage of all of that bonus and trading cash that's offered by brokerages when you put a trade. haidi: yeah. and is this just a function of the excess liquidity scenario that we find ourselves in in this monetary policy? and shery, it raises the question of are we seeing regulators really struggle to keep up with these meme traders, with the kind of reddit crowd, wall street bets and some of the more i guess unique and exciting investment strategies that have come out to play over the last few months? and we do see the likes of the s.e.c. really trying to react to that and protect investor interest there. more insight into these markets, the recent rise in global yields, from 1879 advisor vice chairman bruder man givings --

breurdman giving his his views. "daybreak" arab is next. this is bloomberg. haidi: hello o

daybreak asia. sophie: we are counting down to the major market opens. shery: good evening from new york. our top stories this hour. a cautious mood for asian investors after a jump in treasury yields and oil prices weighing on u.s. equities. a fed president stepped down