haidi: hello and welcome to "daybreak asia." i am haidi stroud-watts in sydney. shery: i am sophie kamaruddin in hong kong. shery: i'm shery ahn. our top stories this hour. it is in stocks set to open the week with gains as the pickup in growth always concerns over inflation. evergrande faces its next big test with payment due on the $260 million bond.

the developer is said to have guaranteed it. facebook repairs for a whistleblower to go public with accusations about the social networks role in the capitol riot. haidi: let's get straight to the market open. sophie: the heading higher, seeing some pressure. no change expected from australia. the rbnz is seen by consensus to hike rates. bloomberg economics says they don't expect tightening this week given the ongoing lockdown with the kiwi dollar softer ahead of the new zealand cabinet decision later monday regarding those other levels in the country. the asx 200 gaining ground by .2% after capping a four-week drop. energy also higher this morning. yossi share market has exposure to sectors that are vulnerable

to the slowdown but we have seen energy names gaining ground. whitehaven is one of the best performers this year. on that, flipping the board, oil rising for a third straight session ahead to monday's virtual opec-plus meeting. we have pressure coming through when it comes to brand above that 79.20 six level. jp morgan does seem -- ca -- see a climb higher because of the jump in gas prices. treasury futures little changed this morning after they pared recent gains for the 10 year, moving back down to 1.6 on friday but socgen and ubs are bracing for a climb higher in yields. china markets are closed this week until thursday so we have the offshore yuan likely to trade within the tight range that has been established in september, haidi. haidi: markets continue to nervously watch the latest

developments when it comes to evergrande as we see the due date essentially this monday, given it fell on sunday. we will wait to see if we hear anything from the company of course but this is of particular concern because there is no grace period although we know that when it comes to any kind of administrative error, there are five working days they have to play with. it rose up a lot of concern about the opacity of their debt. what is it that beijing is trying to do? we know this is more of a ring fencing as a limitation of the damage as opposed to a forthright bailout of any kind. shery: in the meantime, property developers really feeling the heat but that seems to be an ongoing story with evergrande. the narrative, the concerns about that company, the property sector, and add onto that the power climbed. sophie just mentioned surging prices and that has been a key issue for china and perhaps

highlighting one of the weaknesses of president xi jinping's top priority which has been energy security. what does this mean for the power grade in china given these shortages? what changes could we see in the power market? how regulated or unregulated the power market becomes and what it means for fossil fuels, right? the shift to renewables. will this make aging a bit more cautious in giving away all of its resources? perhaps on the other hand also highlighting the security that domestic power from wind, solar, hydrocarbon actually provides? haidi: that restructuring when it comes to energy sources plays a big role when it comes to bitcoin and the banning of bitcoin and crypto transactions in china but we did da recovery when it comes to bitcoin at least for a lot of people saying this is due to some short squeezes but we see the cryptocurrency hanging onto most of those gains that we saw in

the jump on friday. shery: let's delve into the evergrande crisis facing its next big test on monday. let's bring in our chief north asia correspondent, stephen engle, for the latest on that maturing to has $60 million bond. what do we know? stephen: we know so far that they have not necessarily paid their coupon on their dollar bonds that were due in the last couple of weeks and now this is the big one because this is the cross guarantees, the opaque cross guarantee situation where evergrande is a majority or part owner in this joint venture of jumbo fortune enterprises that has this note that matured yesterday and today because yesterday was a market holiday. there is no 30 day grace period like they have on the other coupon payments on the dollar bonds and this is rather opaque and that is why, you know, there is concern that you miss these

payments, there could be cross default to other dollar bonds. the slow moving train wreck that is happening is also happening at a time when china is on a weeklong holiday. almost a weeklong holiday coming through thursday so there is even less transparency right now and nonpayment on this would constitute a default. yes, they have a few days grace for any technical or administrative issues but there is no 30 day grace period like on other bonds so the markets will be a little bit on edge to see because there has been no communication and by all indications from authorities and the market chatter is that the government wants evergrande to complete these homes that are unfinished. they want them to pay back those wealth management products before they pay back dollar bondholders. haidi: that tells us a lot about

their policy priorities that at the end of the day, the foreign investors come pretty low down the list of what they are worried about. shery: yes, that is probably a fair assumption and again, the authorities are trying to fence this situation at evergrande. we know it is the most indebted developer in the world, 300 plus billion dollars in liabilities. there is a chance to have that contagion go to others. there are smaller developers who are having liquidity problems and that is why you see the authorities instructing banks to lend more, offer credit to healthy developers so you can clearly see that authorities want to ring fence evergrande but not, you know, cut off a key pillar of this economy and that is the real estate sector. shery: stephen engle, our chief north asia correspondent. let's get to vonnie quinn with the first word headlines. vonnie: katherine tai will

report on monday that china is not in compliance with the phase one trade deal. she is due to outlined the biden administration's approach to the bilateral relationship at a think tank. they cite unidentified sources saying she will state that beijing is not in compliance in washington is evaluating possible further actions. the world's largest independent oil trader says opec-plus will be the main factor influencing prices over the coming months. the cartel is due to meet later on monday as it eases what began last year. the asia had says there is little chance of iranian oil returning to market this year and u.s. shale producers are not able to raise outputs. a massive document leak revealed how world leaders and the superrich hide money in offshore accounts and other assets. the international consortium has dumped the almost 12 million files the pandora papers.

they say beneficiaries of secret accounts include king abdullah, tony blair, and the former associates of vladimir putin. rodrigo duterte says he is retiring from politics and will not be seeking breast presidency in 2022. in a speech on saturday, he said he was acting out of obedience to the will of the people who placed them in the presidency. prior to the election, he also said he was retiring from politics but ultimately ran for president and won. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: the incoming japanese prime minister is revamping key positions in the ruling party as he looks ahead to a general election in one month's time. let's get the latest from sophie jackman. so based on his reported cabinet

picks, what can we expect from his incoming administration? >> he will officially become part minister today and announced that cabinet as well and media reports have given us a peek at that cabinet. the message, mainly continuity with a little bit of spice. the foreign ministry and the defense ministry are sent to remain unchanged. the big change, the finance minister. that has been held by taro aso, the longest running japan minister in modern times, 81 years old, who will pass the position onto his brother-in-law so we can expect some measure of continuity when it comes to following those abenomics principles of economic and fiscal policy. when it comes to change, key sheet will set up -- kishida will set up a new position. we are yet to see what that means for japan's trade relationship perhaps with china and the u.s. haidi: what do we know about the

potential for stimulus measures that might come along the way? stephen: kishida did say in his campaign that he wanted to push out trillions of yen of stimulus by the end of this year and when we spoke to him before that election, he was saying that it would make sense if you take ¥30 trillion demand gap into account when pricing up that stimulus. when it comes to the timing come over the weekend, the new secretary-general of the liberal democratic party, he said that we would have to wait until after the election for the amount of that stimulus. if you announced that before the election, people will say it's too low and make it go up and up and up. he says wait for the election. he will need to dissolve the house of representatives for a snap election. local media are saying november 7 or possibly november 14 could be our election days so looking forward to that. shery: we saw japan dropping the

restrictions from the state of emergency fully for the first time in six months. what is the economic recovery look like? stephen: we expect a boost from the end of the state of emergency. tokyo and many other parts of japan have been in states of emergency of one kind or another for most of 2021 although compliance was starting to loosen at the end of the latest state of emergency. we should see that hospitality industry, restaurants and bars, will pick up again and we are looking for that pickup in individual consumption. japan's borders remain closed to tourism so recovery is very much still on the way, looking for some stimulus under this new administration and perhaps them incentives to get people out and about again. haidi: will that be enough to continue driving japanese equities to new highs? sophie jackman, our tokyo deputy bureau chief, on a big day ahead for politics in japan had we will be hearing from caroline link, who

is set to take over the biggest conglomerate as part of our series and we will be joined by singapore's minister for trade and industry ahead of his trip to the u.s. that conversation coming up in the next hour. next, our guests will be sharing market insights with us. this is bloomberg. ♪

haidi: evergrande may face its next big test today. a maturing bond with little wiggle room for payment. the note is guaranteed by the company and is due immediately with no grace period. let's bring in chris weston. his take on this. it feels like, to me, the kind of broader risk around evergrande or perceived risk has really pulled back quite

dramatically. are investors kind of underpricing what could potentially still happen here? >> i don't think they are underpricing because i think the market is well hedged. everyone has been talking about how much people have looked at volatility and that is why equity markets have struggled to go down. that said, if you look at credit spreads and high-yield in the u.s., 93 basis points. there has been no contagion really in credit and i think that is worth having a look. the market is likely -- nicely hedged and that's refocusing on other aspects. they probably got this script in their head that is about containment from the fallout that we are going to see bondholders probably getting some back but there will have to be some restructuring. equity has had a decent bounce from 206 or so. and maybe that comes under pressure today but the market has a story about what happens with evergrande and it will be ring fenced by chinese authorities and they refocused back on stagflation, the debt

ceiling, other aspects, keeping a be the eye on what is happening at evergrande and that can be something we are looking at today. shery: stagflation is where i was going to go next. is there adequate pricing that that is a real risk in other parts of the world as well? they're destined to be a gap -- there doesn't seem to be a gap. growth might not be able to keep up either. >> absolutely. this is not just a european issue, u.k. issue. we have seen situations arise in india, mexico, and that is spelling over. is there more in the natural gas story? everything is really inextricably linked. obviously, there's some circuit breakers, but trying to trade that is impossible today. no one predicted the prices would be at these highs. you just got to go along with the tape and have a very open mind about where all this is

going to go. what is important for me is what happened with inflation expectations in europe. they have been boosted by five-year swaps. that has seen real rates underperforming europe which is why we have seen it under pressure, underperforming on a trade-weighted basis. the markets are, some of what is happening and it is having a big impact on inflation expectations. shery: jp morgan now saying that given the surge in gas prices, that is going to take brent to $84 a barrel by the year-end. if we get to those prices, where are you going to see the biggest impact in terms of asset classes? >> one question -- he had to be quite into the oil market to really get a number, what level does natural gas prices become so hot that businesses start to use crude more intently rather

than natural gas? did say flip over point. that number, for all intents and purposes, is significantly higher than where we are at the moment but if we got to the point where we said natural gas keeps going, that will have a really big spillover into the demand for brent and bits and pieces so that is one aspect as well. i think opec tonight is the big one and i think opec will be the short-term driver here. you have citigroup for example who are expecting or saying that there is a high possibility that we could see that run rate of 400,000 barrels per day increase going up to 800,000. i'm not so sure that would happen myself. it is not my base case. given there are some pretty smart people out there calling for an increase in output, if we see it maintained, that could push the price up in brent about $80 on a closing basis and wti at 76.95. shery: the debt ceiling, the

debate ongoing in d.c., how do you price seven? --price that in? >> take a look at the price action we saw on friday. it traded at a 10 basis point range, which is pretty punchy. if we do see yields moving markedly higher, that volatility could spillover. as currency and rate traders, we struck political risk. we look out for the signs and at the moment, they sell off significantly and you can see higher volatility in asset classes. shery: you are not alone. chris weston, thank you so much as always, pepper stone group head of research. coming up next, facebook is bracing for a whistleblower to link the social network to january's capital riot. details ahead. this is bloomberg. ♪

shery: facebook is bracing for whistleblower comments shortly on 60 minutes. former staff member whose identity is currently unknown is expected to use facebook of a role in the capitol riot's and washington in january. tom giles joins us now. what revelations are we expecting from this interview? tom: well, facebook has put out a memo over the weekend and they have indicated they expect the whistleblower is going to talk about facebook's role in the january 6 violence that happened at the u.s. capitol. the allegation is that facebook basically dropped the ball on

the guardrails they put in place after the election to prevent the spread of the kinds of things that led to this violence in the capital. basically, facebook did away with those too quickly after the election. that is one of the allegations. the other allegation is going to point to the way that facebook's algorithms contribute to political divisiveness, particularly in the u.s. those are the allegations that facebook is bracing for. shery: this comes amidst a backdrop of increasing regulatory pressure on social media giants like facebook. is it likely to kind of move the dial a little? tom: i mean, facebook has been facing a lot of pressure in the a lot of areas. this whistleblower release a lot of documents to the wall street journal, which then published

several stories over the course of september, that highlighted a lot of the problems with facebook's algorithms, with things that facebook knew about how harmful its product was, particularly to young women, young girls, instagrammed product, and the allegation and suggestion is that facebook knew that these things were harmful. but it was very slow if not reluctant to do anything about them. regulatory pressure, very high in the u.s. right now. the biggest concern is the federal trade commission, which is looking at the acquisition of instagrammed and the concern is that this was anticompetitive, that they took out a competitor. now, the concerns raised by the whistleblower are separate from the antitrust concerns. at the same time, it does not help you in the eyes of regulators and legislators to basically see that what you did

with that product was harmful and disruptive to young girls. it is not helpful to facebook's cause. haidi: tom giles, executive editor for global technology. let's get you a check of the latest business flash headlines. tesla delivered a better-than-expected amount of cars in the third quarter. it set records for the carmaker. an analyst calls the number -- it is one of the most closely watched indicators for tesla and widely seen as a barometer for consumer demand. deliveries for the model three and why account for the number of cars shipped. an electric carmaker disclosed a net loss in its ipo paperwork while listing the size of the offering at 100 million. the start up revealed almost 50,000 vehicles have been preordered and it said amazon will have exclusive right to the vehicles for four years. amazon ordered 100,000 trucks or

2030 with the first 10,000 due this year. delta airlines is increasing services from boston including two international destinations, tel aviv and athens, and boosting capacity by 24% over the previous week. the move will position delta to better compete against american airlines and the jetblue alliance. that partnership is subject to an anticompetitive lawsuit. shery: we are counting down to the start of trading in tokyo. some of the stories we are watching today. a moderna vaccine distributor is planning what would be its second-biggest yen bond sale ever, pricing a 10-year note at the equivalent of $1.8 billion. we are also watching automakers in focus right now after they released september sales numbers. honda took a hit with sales falling 25% last month. reporting sony plans to bid for indian premier -- as part of its entertainment deal.

we will take you to the market opens in japan and about half an hour as we are also a renting kishida to become the new prime minister. -- also expecting kishida to become the new prime minister. baaam. internet that doesn't miss a beat. that's cute, but my internet streams to my ride. adorable, but does yours block malware? nope. -it crushes it. pshh, mine's so fast, no one can catch me. big whoop! mine gives me a 4k streaming box. -for free! that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that?

>> i'm vonnie quinn with first word headlines. china ever grand may be facing its next big test as the dollar knows shows that bondholders say it is guaranteed by the developer. the net was issued as an initial amount of $260 million by jumbo fortune enterprise, a joint venture whose owners include every grant's manger on shore unit. it is -- it's effective due date is on monday with no grace period. the u.s. called on provocative

pressure on taiwan after record number of daily incursions by chinese work planes. taiwan's defense ministry says chinese aircraft conducted 16 flights near the territory on sunday after 39 on saturday and 38 on friday. usa departments as the military actions are destabilizing and risk leading to miscalculations. u.s. democrats looking for ways to rescue president biden's, sole domestic agenda have opened the door to scaling back some social spending. democrats are looking for ways out of their deadlock after nancy pelosi settled last week's planned vote on a $550 billion infrastructure package. progressives want an agreement on the $3.5 trillion on tax increases. >> one of the ideas that is out there is fully fund what we can fully fund. that may be instead of doing it for 10 years, to fully fund it for five years. vonnie: the head of the german company that develops the first

covid-19 vaccines as it will be needed by mid-2022 to protect against future mutations of the virus. the ceo told the financial times current variance such as delta were not different and of to undermine current vaccinations. he said new strains will emerge. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: bitcoin is holding its big jump for friday. it may have significantly change the crypto's technical set up. let's bring up our guest. is this because we are seeing a short squeeze after all of the negative sentiment stories we have had? >> some people were citing things like comments from the federal reserve, saying that

china crackdown maybe was expected. but this move higher from friday really was quite sudden, $2500 higher right away. it looks like there was some sort of internal things like the short squeeze that played into that big move. haidi: what are some of the -- shery: what are some of the key levels for bitcoin going forward? joanna: we are looking at 52,000 or so, the high from early september. beyond that, there is really the near 65,000 record from mid april. on the downside of course, you have 40000 and you have that round number. if they can take it that september high of 52,000, that would be a big factor going forward for optimism. haidi: joanna singer on that move in bitcoin. let's check in on how sydney markets are trading at the moment.

sophie: i want to jump into the terminal and show you how we are shaping up in the share market after a form we could drop. it is adding more than 1%, with banks leading the gains. cba gaining ground after completing an offshore -- off market share. the government pledging to be opening borders in november. rising to the highest level in one year. intraday gaining ground. rising to the highest level since november, 2019 amid the surge in coal prices. flipping the element on the screen as we have seen, pulling up the board, we have stocks of global energy rallying, nearly 10%, whereas utilities and materials have lagged the index over the past month as rising power prices have hurt users. in asia, the biggest losers could be pepco and korea electric power. turning to energy markets, we have u.s. net gas in focus. we are seeing how prices are

resuming gains, lifting its base case to a count for a new high scenario above six dollars on u.s. net gas prices. commodity team says it's meeting is a live one and that may see the likes of boosted daily output above 400,000 barrels. oil prices looking fairly steady. downside pressure. not far on the recent high after a six-week gain. the market structure does remain bullish with the time spread at $.78 compared to the 56 we saw at the start of september. shery: this week, energy traders will be focusing on opec and its allies as they meet on monday to discuss other to increase output. su keenan us with the latest. this is coming at a time when opec-plus already boosted production in september. su: the market continuing to tighten, given robust demand. there is a question to how much they will increase. citigroup is saying it could be

double what it previously had been discussing, which was 400,000 barrels. they boosted output by 360 barrels a day in september. this is how much they will boost by november. opec-plus output increases still lag the demand recovery, and chinese all-out buying across all fuel categories for the next month. it could tighten markets further. we have a group, the look -- the world's largest energy trader, predicting the production policy will be the main factor driving oil prices in the coming months. take a look at the one week chart for oil, west texas and intermediate. it has been a volatile week. as sophie mentioned, we are seeing oil prices hold above or at about 76 for west texas intermediate. we had seen oil for brent reach $80 earlier in the week. analysts and traders are saying that is being supported by the

view that demand will outstrip supply. there is a view that perhaps a ron oil will not come on board this year, that u.s. shale producers are not going to be putting in enough of investment to affect output anytime soon. and again, there is a lot of signs that this is becoming a political issue, not only the order from beijing for state owned companies to secure their energy supplies, but the biden lighthouse also indicating they are concerned about the strength of this crude oil rally. haidi: we are seeing oldish predictions for gas prices as well. su: let's go into the bloomberg and look at natural gas. it is trading at the equivalent of $190 oil. and the price shock that could result from that in europe electricity and that gas surge between 1000 and 2500% from spring 2020 los. can the crisis in asia, a major

pressure on the global energy situation. jp morgan warning worsening the gas crises. you are looking at the gains we are seeing year-to-date so far. look at the bottom. 300% gain. this will spur so many power generators to switch to petroleum-based fuels that crude could reach 84 by the end of the year. bank of america is saying it could reach 120 if we are looking at a cold winter. prices, let's go back into the bloomberg, also going through the roof. and that is compounding the energy crisis. we also have a big shortage threatening the u.k., which is now entering the second week of real problems for u.k. drivers to even find fuel, let alone be able to afford it. and the fruits are now being deployed to help with that situation. shery: su keenan there with the latest on the energy crisis

which is leading to inflation concerns. mexican central bank sees no immediate need for a more aggressive rate hike, but remains data dependent as it seeks to fight for rice pressures. i spoke to our guest about their efforts to combating inflation that is currently double the central bank's target. >> we are in a very difficult and very complex context in terms of the monetary policy. we are seeing very fast recovery. but at the same time, it has slowed down lately because of the pandemic. and we are observing globally, increase in inflation. it is a moment where we have to be aware about uncertainty, in terms of growth, in terms of inflation. we have seen a rise that is beyond what we were expecting.

so this is something that we need to be analyzing as issues arise. we adjusted our monetary policy, and terms of being able to get to the convergence of our target of 3%, within our mallet -- our monetary policy horizon. i would not say that we have a specific path to which we are committed, but we are going to be doing whatever is necessary so we can converge to the target on the horizon. shery: does that include half a point rate hike instead of the 25 basis points we continue to seek? >> if necessary, we are open to that. but we are basically based on attendance and at this point, we

don't foresee that is something that is immediate. but of course, this is something where we cannot commit. shery: so far, you have had three rate hikes. have you started to see any positive effect on inflation? irene: we have seen inflation increasing. but i'm sure that if we didn't do that, then we would be seeing a more increasing inflation on one side. on the other side, we have seen a very good development in the markets. i think that is really relying on the monetary policies and the decisions we have been making lately. shery: how are you factoring in the global energy crisis right now in two's monetary path? irene: that is something that is affecting very hard global inflation, but also weekly. -- also locally.

we are seeing a lot of stickiness in terms of core inflation, and the influence of energy prices in merchandise has been very strong. and also, the shift of consumer patterns in terms of more importance to merchandise than services. i think this is a factor that will be present for a long time, especially if we see the short distance in the energy markets. shery: give us your take about what is keeping inflation so high for so long? we are talking about double the bank's target right now for a few months. irene:. right. and that is why we needed to reinforce our monetary policy stance. and of course, there are a lot of factors, external factors,

but come from normal inflation. also, based comparison factors. but also, shortages in the production chain that have increased so significantly, and in general production, and shorter merchandises. this is something that has affected a lot. and it has already affected the short-term expectations, and we are worried about anchoring and maintaining long-term expectations. haidi: that was deputy governor irene espinosa-cantellano speaking with shery. coming up next, we hear from the air of one of tylan's oldest conglomerates. carolyn link lays out there global extension plans in the push to more renewables. this is bloomberg. ♪

shery: this week on generation next, we speak to a key figure at one of tylan's oldest conglomerates. caroline link is a fourth generation air, founded in 1878 to supply western medicine to the kingdom. today, it operates across sectors including energy, health

care, and transport. with caroline's father heralded at the helm, it has become one of the biggest private power producers in tylan and has asked -- in tylan and has expanded. they are wanting to push the company further, she spoke to our reporter about their renewable missions and her mission for the future. caroline: we are strategic as well as opportunistic. we like to have a practical approach in that sense. we started out as a pharmaceutical business over 140 years ago. and now, recently, over the last 30 years, our energy business has been strong. we have always been an infrastructural project. or businesses, whether it was health care, then going into transportation, telecommunication, projects. now energy being our biggest business. but industry is also an important part, whether it is equipment or services.

and health care equipment is still there. so it is really a balance but is important to us. >> do have several projects underway in development around southeast asia, particularly in vietnam. what about further afield, where are you looking? caroline: we already had a power plant in vietnam. so we had experiences like country which was very helpful. we found partners that could help us introduce. for us, it is always very important to have the right partners. there was an opportunity to get licenses for large solar parks, and we managed to get those. that made the expansion possible. and now we are also looking at the possibility of further expansion in the gas fire powerpoint. we are looking to expand much further into malaysia. we have a partner there that we are looking to do some interesting projects with. korea also very interesting.

basically it all countries, we are looking at solar and wind. in laos, we are very strong and we only have water, so hydro. and thailand is still expanding a lot as well. we are currently looking at a very interesting projects in eastern europe. annabelle: with the target of being carbon neutral by 2050, does that mean you are looking at renewable projects or traditional power sources? caroline: we keep on looking at gas, and we look very strongly at renewable. it is not only the trend, but also the future and the technology is becoming cheaper. however, we also see that there is a big place still for hybrid power plants. it is a combination for different reasons. i think the renewable power plants are also still very influenced by environment of factors. until we find the right balance,

we will keep expanding in all directions. annabelle: what about the industry and health care sectors? that makes up about 30%. where will you see the biggest opportunities in the industry space right now? caroline: in the industry space, we are really focusing on smart solutions. smart utility solutions for districts and cities. then we are looking at healthy living, healthy building solutions as well. so for example, we are in the cooling business, we are in the lighting business. things that iot integrated solutions for buildings. how can we improve the energy sufficiency of these buildings, make them healthy? which is especially relevant today during covid. on the health care side, we are strong on the pharma and equipment set. but we want to grow a lot, and grow more on pharma and the services side. on the services side.

we just started our first primary clinic. and we want to expand that fairly fast. and i think there is a strong trend but people are not only visiting large hospitals, but are also looking to visit clinics closer by, as well as looking for digital solutions. annabelle: with so many diverse business areas, how do you find synergies across them? caroline: synergies, we used to be a trading house. we used to sell equipment and always sold what infrastructures were being built, and what equipment is necessary required for that. the services. so it is not alien to us. we are very used to that. we split off into different companies and sectors. annabelle: let's talk about your father and family in more detail. under your brother's leadership, it became one of the largest power producers in thailand. what would you say the biggest

business lessons that he has taught you? caroline: hey is somebody that always looks for a partnership, to look for the best practice or best people out on the market. somebody that never shied away from a challenge or trying out something new. and always knew how to put the different pieces together, and to help the connections work well. obviously when you put a lot of partners together, there is a lot of interests that come together, and a lot of mindsets. and you really have that skill, that is something i tried to learn from him. i also see the opportunity in that, because obviously when the different partners come together, they are also in different areas. we can learn a huge deal from them. they elevate our standard as well because a lot of them are international organizations. and that open-mindedness and flexibility of trying to understand the end of the -- the other person and come together, i think that is very valuable for us. it has been valuable for us in the past. and that is how we function today.

annabelle: you have spoken about being a guardian for be grim for the next generation. what sort of footprint would you like to leave on the business? caroline: an important part of our success is the culture, the values. i would really like to be part of keeping that strong, making sure we bring that forward, and being able to develop and evolve that. , another part is obviously taking it for the next generations. it is also something that they can understand or possibly be able to manage, as you said, we have grown a lot. we keep diversifying, keep adding new businesses, and it makes it more and more complex. so i would hope that i can pass it on also in a way that makes it ok and easy for a new generation to do. also because it is a legacy, or something that was built by others that you want to make sure that it keeps striding

forth. it is a sense of her sensibility for everybody that put all of that hard work in, to make sure it stays on into the future. annabelle: that was -- haidi: i was caroline link speaking to animal jewels. you can watch more interviews of the new season of generation next, airing mondays at daybreak: asia at 7:40 a.m. hong kong time. you don't want to miss another thing on daybreak asia. we will have that exclusive conversation. that is happening at half past 8:00 and hong kong. that is a 30 p.m. in new york -- 8:30 p.m. in new york. this is bloomberg. ♪

haidi: a quick check of the business flash headlines. facebook is bracing for allegations from an employee over capitol hill riots. a memo to employees preempts the whistleblower's 60 minutes interview, and suspends the company against the claims. the whistleblower is expected to a -- accuse facebook, and suggests its products contributed to the storming of the capital. google is shelving plans to add bank accounts to its payment app and becoming the latest tech giant. the company says it will focus on helpinger digital

services instead of providing them. reliance said it is wanting to consider the uae for trading in oil, petroleum, as well as agriculture commodities. they invested $1 million in the new subsidiary. let's look at some of the stocks we are watching. sophie: we are watching tesla suppliers after the carmaker reported global sales for the third quarter, whereas automakers delivered an ugly quarter for u.s. sales because of the chip shortage. nissan registered a 10% drop in sales, steeper than forecasted amid the change, which saw a reduced incentive. taking a hit from the lack of fresh models. nissan also on watch, on a nikkei news report that has entered negotiations with great wall motor to sell a factory in spain, with an agreement expected at the end of the month. shery: we are looking forward to the market open. they are next. we have australia higher by 1.4%. this is bloomberg. ♪

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shery: welcome to "daybreak: asia." i am shery ahn in new york. sophie: i am sophie kamaruddin in hong kong. haidi: i'm haidi stroud-watts in sydney. taking a look at the markets opening in asia. top stories is our, set to open a -- outweighs concerns over inflation. ever ground faces its next big debt test with a $260 million bond. the developer is set to have

guaranteed. an investigation uncovers millions of documents detailing how the rich and powerful use offshore companies to avoid tax and hoard their wealth. we will be speaking exclusively to singapore's trade and industry administrator about the fires reopening plants. let's get you straight to the markets. as well as chinese markets for the golden week holidays. let's look at the open in tokyo. sophie: in tokyo, after a two-week drop, we are seeing green shoots for benchmarks with fiscal stimulus and focus. local media reporting the exact size of the package will not be announced until the general election, likely to take place in november. jgb markets are watching those prospects. goldman expecting limited implications for the yield trajectory. ahead of tuesday's 10 year option, jgb opening higher this morning. also on tap this monday. trading there a one-week high, looking to tesla 111 handle,

trading below that. we are seeing the dollar softer for a third session. we are seeing cash shields on the u.s. 10 year, back below 146. they do see benchmarks rising to 2%. inflation only set to statewide next year. switching out the board for the market action in sydney, we are seeing moves higher for the benchmark by 1.3%, with only health care under pressure. we have thanks leading the gains along with energy stocks amid the surge we are seeing in prices. whitehaven rising to the highest level since november, 2019. on the commodity front, we are seeing brent and wti prices steady ahead of the opec-plus, saying there is a question mark as to whether they will boost daily production by 400,000 barrels. rbc capital saying this is a light option to see them do step beyond that level. shery: so far, our next guest says his can stash he is constructive on markets, despite risks that have coalesced at the

same time. let's bring in asia equity strategist at j.p. morgan. always great having you with us. many challenges including the power crunch and covid, not to mention china regulations, fed policy, every grand --evergrande seem to be a lot to overcome. what will drive markets higher? >> i think this boils down to the question of what is your view on the cycle. if you think we are in a late cycle situation where we are headed into a recession, and there is more downside to markets. that is not what we think. we think growth is slowing down from the very strong base we saw in the first half of this year. it is going to stabilize into a midcycle environment. this is typically what we see in all of the historical cycles we have seen, and the midcycle environment tends to last several quarters at least. if you look at all of the things that is still reopening, a lot of the capex has yet to happen. all of the books are long at various companies.

you put all of these things together, the view on the cycle remains that it will survive. each we are at a point i'm judging when the inflection and growth happens. if you look at the pmi that came out last week, there is some tentative signs that growth is bottoming. in terms of the market risk, yes, you have to price those in. we turned constructive in august and we have seen a downturn in september. that is because some of these events. it will eventually get past these. like esau with the fomc, once he get past the event risks, the market will recovery. shery: treasury yields have come down from the surge we saw in recent days. still it has led to that continued rotation into values as this chart shows. we have seen that in asia. is that the narrative we will continue into the fourth quarter? mixo: absolutely. not only is value seasonally very good aligned for four q in january, that is when it tends to do the best, but if you look

at other factors, commodity price upside happening right now, you have bond yields moving higher, especially real yields which we think will continue to move higher, then you have reopening happening in various parts of the world. in asia, if you look at the stocks, we have yet to price a significant amount of their reopening. one technical thing but we look at closely is the amount of crowding in various factors. while value is crowded in mid-may when it started to underperform, the situation is exactly the opposite where momentum is extremely crowded and we think there could be more downside to various momentum spaces here. haidi: i want to take a look at the energy crisis and how much that plays into sentiment and growth prospects. this chart showing how much of a jump we have seen in the gas prices. we have seen the catch up play when it comes to crude. $190 a barrel when it comes to net gas. can still going ever higher. is this something that is adequately priced in, because i

don't think it is really something that people had been expecting what happened going into the end of the year. mixo: there are two parts to this. the first thing is energy prices are rallying, so energy stocks will do well. this is part of our value my argument. the energy is probably the technical we are most bullish on. all of these factors. you look at positioning where it is, you look at the mental in terms of growth, and you look at momentum in price and commodity prices, it all aligns well with energy to do well as a sector. the second thing, unlike you mentioned, the conversion of gas, or oil to gas for heating, is going to drive the next leg higher. we do think that there could be an overshoot to what we expect our baseline forecast of $84 a barrel for brent kier -- brent crude. if you get to overshoot that, you could hit $100 per barrel, and that is a realistic scenario. the second thing you think about is what impact does that have on

the economy? i would say a sudden spike in oil prices probably does not mean that much. if oil prices were to sustain at $150 in that range, or even higher, in terms of oil prices and remain there for six months, nine months, that will start to have a negative impact on the economy. once we see that, or if and when we see that, we will start planning for that. haidi: the other risk evergrande and what happens with the $260 million bond that is due today. we are no longer talking about a systemic risk. we are talking about ring fencing by beijing, the selective approach to giving some support. i'm curious what this teaches the investment community about how china views and will deal with foreign investor debt owed? mixo: i think you have to look at it in two ways. first is evergrande has a

company, and i have no comments there and terms of how that situation will resolve, but the big question is how the spillover or the financial contagion accent is being contained? in their we seem to be getting signs that the government is planning to contain this. they are aware of the potential for this to become systemic through various channels in the financial markets. and there are attempts to mitigate that effect. especially in the past week or so. we have started to see those efforts being stepped up, including injection by the pboc. we do think the contagion fears from evergrande are probably overblown. how this affects foreign investors, foreign bondholders, specific to the companies, we will see how that resolves. and the rest of the market, we continue to see investors being reasonably ok with bonds. if you look at the largest amount of foreign investment in chinese fixed income markets, it

is mostly in government bonds. that part i don't think has been affected. haidi: great to have you with us. mixo das, equity strategist at j.p. morgan. incoming japanese prime minister is ricci revamping key positions as he looks ahead to a general election in a months time. let's get the latest from our policy reporter. based on his reported cabinet pick, what do we expect in terms of fresh faces, some change in the incoming administration? >> right. what is being announced today is the party positions were announced last week. from what we see on the cabinet so far, there are a lot of new faces. we are seeing 13 out of the 20 people we expect in the cabinet are people who have never been in the cabinet before. that is quite new. on the other hand, what is often needed in japan in these cabinets is one radical

appointment, someone who is very young or who is well-known in some way who would catch the public's imagination and help boost the population -- the popularity. i have not seen anyone like that in this current lineup. the lineup in itself probably will not make any difference to the popularity rating, as he heads into this key election, which is coming up probably in november. shery: what about fiscal stimulus? there was an understanding before the election that whoever became prime minister, it would still implement a big stimulus package. do we have any more insight on what this might look like? isabel: we have very little so far to go on. a lot of people have been expecting tens of trillions of yen that he had been talking about for some time would be announced in some kind of concrete form before the election. and that would make sense because the public would like that. a lot of people have been

suffering economically during the pandemic. we are just coming out of the emergency, things are starting to return a little bit to normal. if you went out this weekend in tokyo, the streets were packed. it was the kind of situation we have not seen for months in tokyo. there are prospects of the economy to improve. the details of the package are not out there. we saw one of his close aides at the moment, saying he did not expect the details to be out before the election. that is another thing that is not going to help him. on the other hand, we do all we see inevitably that any -- but any change in leadership and japan tends to lead in a rise of support for the new prime minister. at least he has that on his side at the moment. shery: we will be watching those elections closely. isabel reynolds, our politics reporter in tokyo. let's get to vonnie quinn with the first word headlines. vonnie: thank you. the u.s. has called on china to halt what it calls provocative pressure on taiwan after a

record number of daily incursions by chinese warplanes. taiwan's defense minister says chinese aircraft conducted 16 flights on sunday, after 39 on saturday and 38 on friday. the u.s. state department says the military actions are destabilizing and risk leading to miscalculations. u.s. trade representative catherine hyde will say that china is not in compliance with the trade deal. she is due to outlined the biden approach at an event hosted by a u.s. think tank. cnbc sites unidentified sources, saying she will say that beijing is not in compliance in washington is evaluating possible action. the head of the german company that developed the first covid-19 vaccine says a new formula will probably be needed by mid-2022 to protect against future mutations of the virus. beyond tech cofounder and ceo told the financial times current variants such as delta were not

different enough to undermine current vaccinations. but he said new strains will emerge that can evade booster shots and the body's immune defenses. a massive document leak is revealed how world leaders and the superrich hide money in offshore accounts and other assets. the international consortium of investigative journalists has dubbed the 12 million files the pandora papers. they say beneficiaries include jordan's king abdullah, former u.k. prime minister tony blair, and former associates of russian president vladimir putin. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: we are going to get more details on the pandora papers, what else to contain later this hour with the ici j investigative reporter. plus, as china stepped up efforts to limit the fallout from evergrande, aging shares

how it is willing to put homebuyers i had a bond creditors. we will get more next. this is bloomberg. ♪

shery: evergrande is in focus monday as the dollar bond goes to the matured sunday, and failure to pay what constitute a default for the latest -- default. for the latest, let's bring stephen engle. do we have any more details on what happened here? stephen: it is clear or becoming more clear that the government in china essentially wants evergrande to payback and build it's in completed homes and pay back its wealth management holders that are due billions of dollars. and perhaps the foreign creditors, they are not going to

be lining up and picketing and protesting. it is the lesser of the two evils. the lesser risk. and they have those 30 day grace periods on those bonds, 128 and a half million dollars of coupons they have missed in the last couple of weeks. by most accounts, the bondholders we spoken to, the wildcard is this matured bond, dollar bond of $260 million note issued by joint venture called jumbo fortune enterprises, which is largely owned by hyundai real estate. the domestic property of evergrande which guaranteed this note and yesterday was the deadline. it was a market holiday. today is essentially the due date. there is no 30 day grace period. there is maybe a five-day wiggle room if -- if there is administered of issues. it is another four days worth of national holidays in china, which adds to the lack of transparency on this issue. the big question with all of these bills coming due and being

missed, what are creditors going to do and what can they do? until there is a default officially, no legal action can necessarily be taken offshore. it is a waiting game right now for dollar credit -- dollar bondholders offshore. haidi: when you take a look at the hierarchy of the stakeholders, what does it tell us about beijing's policy priorities and what they are most worried about? stephen: they are most worried about having a contagion, obviously. and that is why this particular jumbo fortune bond is so interesting because there is this -- this cross guarantee, the opaqueness of the cross guarantee that could lead to cross default of other bonds that we. just talked about. authorities want to re-fence this they want to promote healthy develop in of the real estate market. they have those three red lines to control debt loads that

developers like evergrande. evergrande have gotten so out of hand, but perhaps those red lines were put into place a little bit too late. they also want to avoid the homeowners who bought these uncompleted homes as you see here, to have those homes restarted and delivered. they also want the wealth management products paid, at least some percentage on the dollar. they do not want unrest. they do not one contagion. this is still a large pillar of the chinese economy real estate. they are just trying to pop some of the excessive debt that is built up. look at these bills that have come due and they are missing. 128.5 million u.s. dollars mist of the last couple dollar bonds of september 23 and september 29. i'm going to add one less thing. three more coupon dates are due a week from today, a total of 149 million u.s. dollars due. that will be a total, if you add jumbo fortune enterprises, half

$1 billion in coupon payments due. shery: we will continue talking about this for a while. stephen engle there, chief north asian correspondent who will keep us updated with all of those payments. china may take major steps to reshape its grid and power market after the energy crisis highlighted weakness in its power system. to discuss the policy options that beijing may explore, let's bring in energy reporter dan murtaugh. the current power pricing regime is only a couple years old. what is the problem? dan: the problem is the power prices in china are still largely regulated and set by the government. we are seeing the problem right now, which is that cold prices have basically doubled this year. power prices have only gone up a little bit. a lot of power generators are losing money. that is making them shut down for maintenance or keep themselves at half capacity to

avoid incurring more and more losses. that is why you are having outages in provinces likely yao ming, and places like beijing where you have to keep the air-conditioning above 26 degrees so that you don't put too much strain on the grid. one thing china might do going forward is speed up some long jesting power reforms, to give the market a little bit more flexibility, so power prices might rise along with input prices like coal. or some sort of free-market, like they have in parts of europe and the u.s., where traders buy and sell power and the market sets the price. china has talked about doing this, but it has been very slow developing. the power crunch might be the impetus for a little faster movement on that front. haidi: impetus, but will it test the commitments to the transition, given some of the issues we are seeing with the transmission side of things? dan: yeah, that is a really good

question. we are seeing in places like europe, poland has asked questions about whether we are moving to green energy a little too fast. i don't think we are going to have that same issue rise up in china. even though within social media, within local media, some people are raising questions about whether she is 20-60 gold, or the cause of this the chinese government seems pretty set on moving toward cleaner energy. one of the reasons is, frankly, you don't have to import wind or sunshine. once you build these renewable resources, nuclear, hydro, solar, wind, that cuts off the need to mind fossil fuels or import oil and gas. so they see clean energy and the energy transition not only in terms of climate goals, but also in terms of energy security goals. the issue for them is going to be finding ways like batteries or pumped hydro storage to be able to even out the peaks and

valleys of when the wind does not blow or when the sun does not shine. shery: bloomberg asia l -- energy reporter dan murtaugh there with us. a key element in the clean energy transition is copper, which has remained supported because of the stronger yuan, and high stockpiles. we are watching those base metals. we have seen a lot of volatility in that sector. we continue to watch coffee as well, it is -- it's all its biggest gain since july. bad weather and producing countries like columbia and brazil, really leading to those supply concerns. take story has been net gas. so expensive. around the seven-year high already. in some places, they are switching to oil-based fuels that could add more than 900,000 barrels to daily demand, according to jp morgan, just putting the price of oil at about $84 a barrel by year-end. a little bit of pressure right now, but after six weeks of

consecutive gains. skyrocketing prices really affecting what countries are doing. still ahead, we take a look at the outlook for natural gas in india. oil and gas exploration and production ceo joins us for that. this is bloomberg. ♪ ♪

haidi: a quick check of the latest business flash headlines. tesla delivered a 241,000 cars worldwide in the third quarter. it is a record for elon musk's electric carmaker. an analyst calls it an eye-popping number. reported deliveries on one of them is closely watched indicators for tesla, also widely seen as a barometer of consumer demand. deliveries of the model three accounted for the overwhelming

number of cars shipped. electric truck maker review and has disclosed an almost $1 billion net loss in its paperwork, while listing the signs operating at 100 million. the m's i fact startup revealed 50,000 beat have been preordered, and said amazon will have exclusive rights to the delivery vehicles for four years. amazon has ordered 100,000 last -- 100,000 trucks by 2030. airlines is increasing services from boston, adding two international destinations, tel aviv and athens, and boosting capacity by 24% over the previous peak. the move will position delta to better compete against an american airlines jetblue alliance. it is subject to an anticompetitive lawsuit. , we discussed the future of doing business in singapore and the outlook for reopening with the trade and industry minister. our exclusive interview is next. this is bloomberg. ♪ ♪ reporter: china ever grand may

be facing its next test as a dollar note some bondholders say is guaranteed. it was issued as an initial amount of $260 million by an entity called jumbo fortune enterprises, a joint venture whose owners include the main onshore unit honda real estate. the due date is monday with no grace. . u.s. progressives are looking for ways to rescue biden's

agenda have open the door to scaling back some social spending. democrats are looking for ways out of the deadlock after nancy pelosi scuttled last week's plan vote on a $550 billion infrastructure package. progressive swap agreements on $3.5 billion in social spending and tax increases. the philippine president says he is retiring from politics and will not be seeking the vice presidency in 2022. in a speech he said he was acting out of obedience to the will of the people who placed him in the presidency. prior to the 2016 election, dutere said he was retiring from politics but ran for president and one. -- won. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: singapore's population shrank by a record 4.1%

year-over-year, of course exporters remain largely shut. the decline is driven largely by a degrees and population, foreign workers and students. let's cross over to singapore where haslinda is joined extensively by the trade and industry minister. haslinda: and he is not just the trade minister, but cochair of the covid task force. thank you for joining us, good morning. guest: good morning to you. haslinda: are we on track to emerge from the restrictions into weeks? -- in 2 weeks? guest: we are fully on track and are committed to covid resilience. this time when we have to tap on

the brakes, that will allow us time to slow down, and give us more time to allow our health care facilities to ramp up and shift towards home recovery. this is our strategy for living with covid-19 over time. haslinda: living with covid-19 requires travel without quarantine. what is the outlook for vaccinated travel lanes? right now it's only with germany. what are the prospects for more countries? guest: that is an important question. we have started a pilot of vaccinated travel between singapore and germany. this pilot will allow us to test the system to ensure they are able to handle verification of vaccinations, and the response. the pilot has gone well so far,

we had just one case out of more than 1000 arrivals, and therefore -- haslinda: what is the outlook? can we expect the u.s. to be included? guest: yes, we are in discussions with several countries and regions including other countries and europe as well as the united states and see how we can take this one step further. it will require to discuss how the arrangement will be, but the process is like, we will be able to then begin vaccinated travel with more countries. we are in discussions with several countries which would include europe and u.s. as well. haslinda: that is by the end of the year, minister? guest: we are hopeful we will be able to do so by the end of the year or even earlier. haslinda: is there a risk

singapore could lose its competitiveness, because countries including australia are beginning to be more aggressive in reopening? guest: it is important for singapore to continue with this journey towards covid resilience, and it is important to do so while preserving lots. it's a delicate balance between saving lives and we are doing our best to make sure we have a calibrated approach while we continue this journey of opening up and keeping singapore safe, and be a safe place for businesses. singapore's attractiveness ghost gun covid-19 come up with -- goes beyond covid-19, with conductivity to the rest of the world. they hope not just for business,

but it is important for us to continue this journey of covid resilience while developing a vaccinated travel lane. i think this is an important part, and we have also -- we will continue to be attractive. haslinda: minister, despite an 82% vaccination rate, we have the u.s. cdc giving singapore a high-risk virus destination. your take on that. guest: it's important as i mentioned for us to work out the vaccinated travel lanes, because in order for us to ensure travelers are able to visit safely, it is the way to go. therefore, we are in discussions with various countries both in europe as well as the u.s. to create vaccinated travel. for businessmen, we have

vaccinated or allowed businesses to come to singapore, but it is important for them to be vaccinated to protect against serious diseases. haslinda: we talked about how singapore's population shrank 4% year on year. a lot of -- how do you think this will impact singapore as a destination for businesses, for foreign workers? guest: i think singapore will continue to be attractive because of our robust infrastructure that we put in place. at the same time with our conductivity test connectivity with the rest of the world, resilience for many businesses who operate in singapore from other parts of the world. at the same time, our efforts in protecting our people will also

keep business confidence, they can operate safely in singapore and with our efforts to continue to develop the travel lanes, i think singapore will continue to be attractive to businesses. businesses will continue to do well and be seeking interest in investing in singapore. singapore is in the heart of asia. haslinda: is there a concern such as having industries being impacted? guest: we are also looking at opening up for foreign workers to come back to singapore. recently, we announced small measures. this will allow the singapore

economy to remain vibrant and continue -- haslinda: my to the shrinkage work in singapore's favor, given singapore is looking to tighten this cruise? -- tighten the screws? guest: singapore will continue to remain open. we have to continue to tap on talent from all over the world to allow our economy to grow, beyond the restrictions or confines, limitation of our size. i think we will continue to be welcoming of foreign talent, but it is important to be very focused and selective. we do have a limit of comedy people we can have in singapore, therefore we need to look at foreign power that will be

critical to us. this will go hand-in-hand and complement our local workforce to allow the singapore economy to continue to grow. haslinda: minister, i want to take a look at your upcoming trip to the u.s.. what will be the priority, but will be top of the agenda? supply chains, for instance? guest: one of the key issues we will be discussing with our u.s. counterparts is on the supply chain resilience. covid-19 has demonstrated it is important to ensure supply chains remain intact so the economy can continue, and essential supplies like pde or pharmaceuticals and vaccines continue to flow freely. therefore, supply chains are one key topic. singapore is well-positioned to play a crucial role. we can play a very important

part in the supply chain. haslinda: we know that china has made a bid to be a member. how did you view china's numbers of? would you like the u.s. to be a member? guest: singapore welcomes anyone who has interest in joining this high standard trade agreement. the u.s., for example, was the original architect of the transpacific partnership agreement. if the u.s. is interested in reentering, we will be happy to discuss it. we also have to bear in mind when there is china, the u.s., or any other that is interested, it will require the consensus of all of the members. the rules are set out in the agreement. i think it's important for

anyone interested to consult various members, to address concerns, and get consensus. this is the way to enter. haslinda: thank you so much for your time today, safe travels. the singapore minister for trade and industry, the cochair of the covid task force. haidi: haslinda in singapore. the u.s. has called on china to halt what it calls provocative pressure on taiwan, after a record number of incursions by warplanes. taiwan says chinese aircraft conducted 16 flights on sunday after 39 on saturday, can 38 on friday. joining us now is our taipei bureau chief. what is the reason or timing, the significance? reporter: china has underscored its national celebrations with

this display of strength. as you said, over the three days from friday through sunday, the people's liberation army aircraft -- there were over 90 incursions. on saturday, there were 39 incursions, which is a single day record high. this is part of a large trend over the past year. in the past few years, typically china has sent around 300 of its aircraft into taiwan's defense zone throughout an entire year. so far this year, that number has more than doubled to 600. there is a clear uptrend in the number of incursions we are seeing in this part of the world. these plans are not buzzing taiwan itself, not close to

taiwan. the identification zone is a self-declared protective zone that many places declare around their territory, that stretches several hundred kilometers away from their territory. because taiwan does hold islands a couple of kilometers away from the chinese coast, in fact taiwan self-declared zone stretches hundreds of kilometers into china itself and therefore planes are frequently flying within that zone. what we are talking about in particular is the southwest portion of this, which cuts taiwan off the main island from some islands in the south china sea. shery: what has been the reaction so far in the region? reporter: the united states has been quick to jump to taiwan's becomes, it has called this provocation and destabilizing.

the united states is taiwan's main military backer, they do not have official ties, washington, d.c. formally recognizes beijing and cannot have official ties with taiwan. it does remain a guarantor of peace for taiwan, the continued existence as a separate entity, the main seller of arms to taiwan. they have been quick to jump in and refer to the flights as a provocation. taiwan has also called it a military provocation, pointed out previously that china did use a fig leaf of an excuse, moves that taiwan had made. so far, we have failed to identify anything that could have triggered this number of flights. shery: bloomberg's taipei bureau chief. coming up, a massive trove of private financial records reveal

29,000 offshore accounts doubled those leaks in the panama papers. we speak to the ic ij for more details in the hellion -- higgins billions -- he didn't billions in the files. this is bloomberg. ♪

haidi: start of trading in hong

kong, we are in the middle of golden week so mainland markets are not trading. evergreen has suspended trading in hong kong ahead of the open. a few other names have suspended trading but we are when it comes to ever grant still awaiting the outcome of that bond repayment that came to fruition last night. that means that the due date is today. we have not heard anything from the company so far, but the last few times has been various companies selling off their stake in entities. we continue to watch that when it comes to the property management unit. let's take a look at markets with sophie. sohpie: we are seeing fluctuations with japanese stocks, now set for a six-day of declines.

you have names like softbank waiting on the tokyo share market, but over in australia the asx bouncing 1% with financials leading the game. we have materials under pressure in sydney along with health care names, check at kiwi stocks trading at a january high. the kiwi dollar losing ground, the only g10 laggard this morning. underperforming ahead of a policy decision. the rba standing pat while consensus is calling for a rate hike. oil under pressure as the opec-plus meeting ahead. shery: let's turn to the investigation by an international consortium of journalists that has dived into millions of documents showing how rich and politically connected individuals use offshore companies, taxes and hoard wealth. we are joined by a reporter who worked on that, the pandora

papers. it's great to have you with us. we have seen some of those beneficiaries of secret accounts including jordan's king abdullah, tony blair, vladimir putin, anything standing out? reporter: this is a different leak from what we have seen before, because for example in the case of the panama papers, they investigated one offshore provider in panama. here we have information coming from 14 different service providers and law firms around the world, different journalists -- jurisdictions. this leak tells us how the system works, and it is not just about how one company operates, but how offshore finance works

across borders. as you mentioned, we have uncovered more than 300 politicians including country leaders. you mentioned thinking of jordan, we also have the current prime minister of the czech republic, current president of kenya, many in latin america. what we see is that while many of them were speaking out against corruption, they were actually setting up shell companies in secret jurisdictions to hold assets or buy real estate. this speaks to the system and how even though in many cases shell companies are not used for illicit purposes, the secrecy that they provide can surely protect these prominent political figures from public

scrutiny. [no audio] haidi: we should point out that bit -- the behavior we are talking out is not illegal, but seeing some commentary, when it comes to financial services, it they are really pushing the limitations of what is legal in each jurisdiction. do you think this will give rise to a fresh conversation about how the hoarding of wealth should be debated within society, and how does that happen affect on potentially opening entire nations? reporter: what we see is even

though there have been some reforms in some countries to include transparency, that has not been enough. as you pointed out, some of these providers are not interested in tackling crime or potentially illegal behavior, many of them report problems with their clients -- reports come out and do due diligence independently. another thing we have seen in the last few years, the system has evolved. for example, tax havens like the bahamas decided to crack down on some problems they were seeing, other countries have come up as your players, and this includes the u.s. and some states. for example south dakota, according to our analysis based

on this, has attracted more than 15 people who have been accused of wrongdoing in their own countries, foreigners, accused of wrongdoing in their own country. the u.s. helping them set up cells -- shell companies. we hope this investigation can spark new conversation on what is needed, we saw today that there were some announcements by authorities in pakistan, mexico and other countries where officials promised to investigate all of the people that appear in this document, and this investigation was just reduced -- released a few hours ago. haidi: really high political

stakes as we saw some leaders resigning after the panama papers. really appreciate your time. we have lots more to come on daybreak asia. this is bloomberg. ♪

haidi: let's take a look at how asia markets are tracking.

trading volumes across the region, china off a golden week, a career close but let's take a look at the gains we have seen with sidney stocks up by 1%, new zealand about 0.25%. this is bloomberg. ♪

haidi: 9:00 a.m. in beijing and shanghai. >> i'm yvonne man. >> i'm david ingles. top -- counting down to the open of trade, markets are shut for golden week. ever grand and its properties services unit suspending trading. beijing steps up effort to rein in the developer. >> opec loss meets today.