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 open. shery: from bloomberg's world headquarters in new york i'm shery ahn. inflation fears hit wall street a selloff in tech stocks batters benchmarks as the commodities index soars to a record. haidi: investors will be eyeing cues on the r.b.a. policy

direction as australia central bank turns its focus to soaring home prices. shery: president biden warns the u.s. may breach the debt limit in two weeks. he blames republicans saying they're being reckless and dangerous. haidi: and facebook hit by an apps outage. the social media giant apologizing as billions of global users are shut out. shery: and a picture across wall street. we are seeing u.s. futures rebounding at the open. it after the -- this after the suspend s&p 500 fell below its 100-day moving average and the 10-year yield at 1.5% but did pare back down those gains and settled at 1.48. we are seeing the dollar continuing to lose ground. it lost ground for a third consecutive session. we have rising yields, higher oil prices, weaker share prices. really being -- those inflation concerns really hurting the broader markets. social media companies, because they took a big hit. and media stocks, twitter,

facebook are among the leaders, fast approaching the level of a correction. we saw three facebook operator social media platforms, and seeing problems today including instagram, what's app and we also had facebook shares already down after that whistleblower's revelation on 60 minutes but all about those inflation concerns, right? take a look at commodities prices. because the bloomberg commodities spot index are rising to a record with w.t.i. jumping to the highest since 2014. we are currently seeing it holding steady at that $78 level at the open in the asian session. but that's already at the highest since 2014 after we had that decision to maintain the gradual supply hike which really unnerved investors over expecting perhaps to do a little bit more. you can see that energy is leading those gains when it comes to those commodity prices. but haidi, really we are very closely watching also what's happening with all of that drama

in d.c., the u.s. moving so much closer to its worst-ever default. and we are continuing to see this standoff between republicans and democrats. and the democrats now saying that they want another vote on suspending the debt ceiling to 2022. republicans vowing to again vote it down. and morgan stanley saying that if you don't see some sort of resolution by next week, treasury bills maturing in later october could quickly decline in value. haidi: a little bit like throwback to pre-covid times and talking about the debt ceiling and risks from the u.s.-china trade talks. this is where we're at when it comes to u.s.-china trade. we know both countries really have fallen behind when it comes to phase one obligations for various reasons. most of which have been pandemic related. but we are hearing that the u.s. trade representative katherine todd is set to speak with the chinese vice premier to hash out some of these obligations under

phase one. this is the first meeting that the stress of china's shortfalls when it comes to meeting its obligations. we will ten to watch for that but in the meantime we've seen u.s. stock portfolios trade very much in favor of the u.s. versus china in this phase one deal. shery: yeah. and this of course coming at a time when china faces its own issues in the property sector, right? and we continue to talk about evergrande and now we're talking about this other property developer, fantasia that missed a $200 million payment of bonds. it's one of those niche developers with that mix of revenue from property development and also income from property management. they're unlikely to pose any systemic risk given their small weighting in benchmarks. but as we're watching closely what happens to evergrande, the company and its property services arm was halted in hong kong trading yesterday. so we'll be watching that closely today. we have heard that they were going to sell a controlling

stake in order to get some liquidity relief. haidi: yeah. just watching out for further cracks when it comes to the property sector as we continue to see bonds within the property space in china take a blow. but as you said, not much of this systemic risk from this latest development but the risk to the chinese economy as well as the property sector,-to-of the key themes when we get into central bank decisions in this part of the world. starting off with the reserve bank of australia will be taking a look at financial stability risks. we've seen runaway house prices again throughout the course of this pandemic. and there will be also expected to flag the upside risk to growth given that we are seeing that path out of lockdown and potentially even the reopening of international borders to see boost to those service sectors at that have been so badly hit. we're also throwing ahead tomorrow, shery, where remember the last time we spoke to governor oran, covid is not necessarily the determinant. delta is not necessarily the determinant as to whether they continue down this tightening path or not. they are expected to continue on

this trajectory as they're concerned about financial stability and property prices as well. shery: so much for investors to keep track of. let's get more on these stories and risks with su kennan and kathleen hayes in new york and also in d.c., let me get started with you, bill, and start with all of the drama that we continue to see in washington. where are we at when it comes to the debt ceiling, the infrastructure bill, and so many other issues at play right now? bill: well, the day started off here in washington with a tough back-and-forth between republican senator mitch mcconnell and president biden. senator mcconnell sending a letter to the president this morning saying that the democrats have all the authority and the ability they need to pass an increase in the debt limit through the reconciliation process. that's the process by which they're trying to pass some of these stimulus and infrastructure bills. the president got up just a few minutes after that letter was sent, addressed the country,

saying that the debt limit is starting to look like a meteor headed toward the u.s. economy. he said republicans need to get onboard with democrats and help pass an increase in that limit. meanwhile, what the debt limit deadline coming up somewhere around october 18, i think a lot of the talk about the stimulus and infrastructure bills is going to fall to the wayside while washington gets gridlocked over who's going to blink first in this debt limit fight. haidi: when it comes to inflation concerns, we see oil trading at seven-year highs. but that didn't really cause much concern for opec, right? very first meeting to discuss essentially sticking to to their course. su: yes. it was a quick meeting and the decision was a big surprise to many of the analysts on wall street. they decided to go with a 400,000 barrel increase, increase a day output increase that was scheduled for november. steady as she goes and stay the

course approach again many believe not appropriate given the energy crisis we have. and the factors that went into the decision, the increased demand, the falling inventories. but they are sticking with an agreement clearly that was made many months ago after a quiet summer. we've seen the radical increase in supply. i mean, in demand. and the concern that outstripping supply. we go to the big picture of what a peck is looking at -- opec is looking at, they had decided to hold back on output increases during the pandemic. they're gradually resupplying the markets. but look at the market reaction where we saw -- west texas intermediate and brent quickly shoot up to seven-year highs. and analysts such as citi's ed moore said they expect twice as much in terms of output for november. certainly they believe that many analysts share the view again, let's look at west texas intermediate. you can see it shooting up briefly to $78 intraday.

brent was back above $80 after being at odd 80 early last -- a. and brent, odd 90 by the end of the year and banc of america saying we could see $120 oil if it's a very cold winter. and then dropping into the bloomberg commodities, now hitting an all-time record, we've got 23 energy, metal and crop futures in this bloomberg commodities. it's at the highest we've seen since 2011. surged more than 90% since reaching a four-year low in march of last year. and then into the bloomberg again to look at just west texas intermediate, widely used here in the u.s., it dropped below zero at the height of the pandemic. it has come back in a big way. now joining so many other energy commodities such as natural gas to really create a major inflation risk. and to quote ed morris, with citigroup, he believes we're

seeing a parabolic rise in commodity futures in the near term and that this is likely to continue for some time. back to you. haidi: that parabolic rise at the top of mind and comes at an interesting time when we're on the press sis of lifting these restrictions and reopening the economy, too. >> for the reserve bank of stalia this meeting -- reserve bask of australia this meeting today, the lockdown on the economy and the impact of keeping the key rate very low for so long and having home prices continue to rise. let's start with a look at those concerns. certainly worried that the lockdowns on behalf of the population being locked down recently what that does to unemployment, what it does to g.d.p. and he is expecting third quarter g.d.p. to contract at least 2%. he has said. and unemployment which you can see now is at the lowest we've seen since before the pandemic. 4.5%. sees it moving back up to the high fives in the second half of the year. he does see a fourth quarter

rebound as vaccinations roll out as you just mentioned. the australian economy opens again to international trade as soon as november. bottom line, though, he continues to say we're not going to start hiking until at least 2024. so let's move on to the other aspect and that is rising home prices. now we'll show you a chart where you got the r.b.a. key rate at a record low of 0.1%. and what do you see with house prices? so far this year, australian home prices are up 17.6%. that is quite a ride. so at the same time, we see record loan approvals and credit growth continuing to accelerate. this is putting the focus on the question of financial stability. so investors are saying watch governor lowe's post meeting poll is he statement for any hints about lending curbs to cool overheated housing market and all of this comes ahead of the r.b.a.'s financial stability report out on october 8, out this week. so this is i think the focus

now, not so much to see what they do on rates. they're not going to do anything on quantitative easing because at the last meeting they said they had cut it from five million australian dollars a month back to $four million so what -- what do they say about the rates or economy? above all, what do we get out of phil lowe when it comes to the housing market? haidi: kathleen hayes and our top investment themes today. central banks in asia facing hawkish risks from inflationary pressures. over to sophie kamaruddin. what's on your radar? sophie: a sense of the pressures with c.p.i. data due from south korea. the philippines and thailand a pickup in prices is expected across the board. and in south korea, inflation is likely to stay above 2% for a sixth straight month as demand side pressures also add to the case for tightening by the b.o.k. next month or perhaps even this month. and the bond market is pricing for three rate hikes totaling 75 basis points next year in south

korea and pulling up the board, korean small and mid caps could look for -- more appealing in the rising rate and steadying growth environment in contrast to larger peers that happened way down -- weighed down by regulatory concerns over tech which is on watch amid the parliamentary hearings going into which saw internet giants neighbor and cacao lose billions in a market cap and for the losses -- further losses could be seen when south korea returns from the long weekend this tuesday with inflation anxiety also weighing on tech. and with that, slipping the board ahead of the open, across asia, early in the session, we are seeing a kiwi -- we are seeing kiwi stocks under pressure and the yen holding below that 111 handle against the greenback. we are bracing for steep lossness japan and nikkei futures in chicago, losing 4% in the overnight session and japan very much a focus that's going on there with the politics. kishida replacing some of these ministers that have been managing the covid pandemic,

shery. shery: we will be watching that open. let's get over to vonnie quinn with the first word headlines. vonnie: we'll start right there, shery. japan's new prime minister has pulled a general election at the end of the month. kishida is seeking to bolster support for his party which lost public confidence over its coronavirus policies. the ruling l.d.p. is expected to maintainity parliamentary majority. but any gains by the opposition could hinder kishida's agency. facebook has suffered a devastated outage that shut out many of its 2.7 billion global users and prompted an apology from the chief technology officer. many users around the world could not access the family of apps including the main social network instagram and what's app. facebook shares were already under pressure following a whistleblower's claim that the company put profit ahead of users' well-being. taiwan says a total of 56 chinese military aircraft were detected in its air defense identification zone monday. as beijing continues to step up its military force near the

island. the flights came after national day celebrations marking the 72nd anniversary of the founding of the people's republic of china. earlier the u.s. urged china to hold its fly byes saying they could lead to miscalculations. global news 24 hours a day on air and on bloomberg qitake powered by 2,700 journalists and analysts. i'm vonnie quinn. this is bloomberg. haidi: opec says it's not yet ready to boost oil production as prices surge across energy market. we will be talking with the nasdaq senior director of energy capital markets tamar essner. and coming up next we get that market insider investment strategy from the president and c.i.o. of gibbs wealth management erin gibbs is joining us. this is bloomberg. bloomberg.

>> that is the only mandate of

the fed. price stability and full unemployment. and let's be clear. right now we don't have price stability. inflation at 5% is among the highest numbers that many in this room have ever seen in their lifetime. and the bet is it's transitory and that's a big bet. shery: founder and c.e.o. ken griffin who thinks calling inflation transitory is a big bet. our next guest says investors should have investments in both value and growth amid those inflationary concerns. let's bring in erin gibbs, president and c.i.o. at gibbs wealth management. erin, always great having you with us. let me get started with this g.d.v. chart and we have seen treasury yields rally and investors just shunning those megatech names and headed toward those value names like the russell 2000. how do you position in this environment? erin: yes. so i've been advocating being able to use what i call a

barbell approach. so really having exposure in both growth and value. and this is -- this is -- i've been advocating this since the third quarter, late summer, because we just keep seeing these shifts between value and growth and basically value does well and defense does well and we have concerns about inflation and growth comes back. and it's been sort of six to nine months off and on. so rather than constantly switching and trying to guess what's happened, i believe in just being able to really look for the best of companies in both ends of the spectrum. and so as we have these concerns now about inflation, those bets and defensives what will hold up your portfolio and give you a lower volatility. shery: what names have you found are you saying the best in both sides of the spectrum? erin: yeah. so specifically to give you an example of that barbell

approach, so two favorites of mine are sales force, ticker c.r.m., so very high growth company. obviously like a lot of software, 80% margins. they're struggling. they had such phenomenal growth in the year past so difficult comps this year of the but again, looking to double digit gains in 2020 -- 2022. and the price has really come down so it's actually a good entry place. the very high growth and at a reasonable price. on the other side, on the defensive side, i'm looking at vulcan materials. and this is a company that does construction materials. it's one of those companies that is very easily able to pass on higher prices to its customers. because it does have such a big -- a large foothold. so even with inflation it still does well. it's not going to take big hits on prices. and so these are the two that are both very strong growth and great track record. and very good at being able to

beat estimates. and neither one of them are particularly extraordinarily high valuations when you look at them historically. and so that's what i'm talking about. that barbell approach. haidi: so transitory being the dominant narrative for inflation, how much of a boost do you expect to see for defensives? erin: you know, i think this might be one of the more shorter lived rallies for the defensives. i think wall street processed going from transitory to being here for a while pretty quickly. even when you look at the equity markets, the biggest down day was 2%. so we didn't see a really sharp increase in volatility. i think it was digested rather quickly. so i think -- we have known this has been come along for some time. we know the commodity prices just weren't coming down. and interest rates have been

falling fairly -- like steady, and recently in the past two weeks, sharp increase. but i think this is going to be something that we're just going to have to work with and get used to. there's higher inflation for quite a few quarters. and so once that expectation is built in, we won't be as much -- see as much of a pop in the financials and the value. i think this might be a shorter lived rally for right now. i think wall street is sort -- digested it already. haidi: erin gibbs, gibbs wealth management president and c.i.o. with some of her trading days. you can get a round-up of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can get that at daig -- at dayb on

your terminal. ♪

shery: when it comes to bit coin and cryptocurrencis we always see these extreme views sometimes. and we heard from sit israel's founder ken griffin talking about the cryptocurrency and he's not happy with the amount of time and energy spent on them. just take a listen to how he described this. because he was pretty dramatic when he talked about crypto. take a listen. >> it's a jihadist call that we don't believe in the dollar. i mean, what a crazy concept this is that we as a country embrace so many bright young talented people to come up with a replacement for our reserve currency. haidi: he said he would trade crypto if it had better regular layings and i suppose gets to

the core of the institutionalization or the mainstreaming of cryptocurrencis, right, shery? i think to me the biggest concern is really these environmental head winds. and china's ban, whether they're going to be able to -- technology and be able to get to the point where regulators are comfortable with the implications, the environmental implications of what bit coin and other cryptocurrencis signify. shery: and interesting to see the trade for bit coin and other crypto assets because we continue to see it pretty high up. although it's under a little bit of pressure but still very close to that 49,000 level for bit coin, right? and let's move on to some other business/headline that is we're following at the moment. tinder rolling out a virtual currency that allows users to buy perks and boost chances of a match. users can earn the in-app coin by staying active and keeping their profiles up to date or by purchasing them with regular money. the feature is initially available only in australia.

tinder expects it to enable more opportunities to earn money from the app. amazon fell into negative territory for the year after a sharp drop in monday u.s. trading sessions. the sustained rise in treasury yields is pushing investors out of tech and other high growth areas of the market as the earnings outlook gets recalibrated. other megacap stocks including apple, facebook and google remain in positive territory for the year. despite declines. a sale of founder the life insurance business from ping an. the potential sale could value the unit at as much as $1 billion. and that other insurers and investment funds have shown interest. the move would be the first disposal after the company was created from a restructuring of peking university founder. up next opec is sticking to its prior level of energy increases. the director of nasdaq and what

it means to an energy shortage. this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today.

vonnie: i'm vonnie quinn with first word headlines. president joe biden has warned that the u.s. is at risk of breaching its debt limit in two weeks. he blames senate republican leader mitch mcconnell for what ascribed as a meteor headed for the economy. while demanding that republicans stop blocking efforts to suspend the debt ceiling. the president has told the senate to -- which would stave off the risk of a default by simple majority. >> republicans in congress raised the debt three times when donald trump was president and each time with democrat support. but now they won't raise it. even though they're responsible

for more than $8 trillion in bills incurred in four years under the previous administration. that's what we will be paying off. vonnie: the biden administration will directly engage with beijing in the coming days to enforce commitments in the trade deals struck under president trump. an official says all tools are on the table. but it does not intend to escalate tensions. trade representative katherine thai will speak to the chinese vice premiere and sut u.s. economic interests first. >> i've committed to working through the many challenges ahead in this bilateral process in order to deliver meaningful results. but above all else, we must defend to the hilt our economic interests. and that means taking all steps necessary to protect ourselves against the waves of damage inflicted over the years through unfair competition.

vonnie: another chinese developer has failed to repay a maturing bond. echoing evergrande's debt woes. fantasia holding group said it did not repay a $205 million bond that was due monday. separately, property manager country gardens said a fantasia unit did not pay a $108 million loan and a default was probable. the builder tumbled on speculation it would struggle to meet its obligations. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2,700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: time for morning calls ahead of the asian trading day. soph. sophie: with potential short-term pullbacks seen in the currency amid the debt ceiling battle and accelerate growth at b of a a good time to buy into the greenback with medium term drivers still supportive given that market expectations for fed tightening still trail the median dot for 2024 even as

inflationary pressures present hawkish risks for central banks and so the b of a reckons that a decent u.s. jobs report this friday should pave the way for a tapering next month and give the 4-x market to doubt the fed results. shery: and weakness on the greenback across commodities, right? we saw the bloomberg commodity spot index now reaching a record high. already oil had risen to 2014 high. we saw opec ministers ratifying the 400,000 barely a day supply hike schedule for november. and now this is a gradual hike, right? so sort of unnerving investors a little bit. so we saw crude really rally in the new york session. copper also gained ground we saw trading in the london session but copper led base metals higher. this after capping that first quarterly loss in six. iron ore prices steady in singapore. they were under pressure. this of course after we saw thin trading and expectations that

steel mills will resume operations after this week's holiday in china, haidi. haidi: next guest says opec is in a delicate balancing act and doesn't feel obliged to address issues from the natural gas market. tamar essner director of capital markets at nasdaq. always grate to have you. 25 minutes, no drama at all. doesn't seem to be much discussion even. they're just staying the course? tamar: the beauty of the new structure they meet every month and an opportunity to see how it pans out and see if there is cause to increase further next month. and other tools in their arsenal as well in coming days they will be announcing their official selling prices to asia and an opportunity there to lower those to provide some additional -- what they are making the point, going into the cost environmentallization next month to say that it's great to have these really strong ambitions about the environment and moving

toward renewables but for the foreseeable future, there will be a demand for crude oil and we have to take -- so i think they want to sort of flex their muscle and make it be known that demand is going to be here for a while. and they can benefit from that. haidi: we've seen the u.s. become the top crude producer in the world. does this change the dynamic when it comes to producers? tamar: u.s. producers the publicly traded ones have been committed to capital discipline. a lot of people sort of question whether that's sticky but you see that so many of them have already announced dividends. there's been inflation throughout the supply chain. so we think that it will require an even higher price to really incentivize publicly traded companies in the u.s. to really increase their production more. the difference is on the private side. so we expect for about 2022, about 800,000 barrels a day will

be supplied coming out of u.s. shale. but most of that will actually come from private companies. because at these levels all of their wells are very economic. and they have a different incentive structure. shery: what are your calculations for extra demand given nat gas prices? we heard from goldman sachs in the like of 650,000 extra barrels of crude demand daily. j.p. morgan, 900,000 barrels daily demand. tamar: yes. and i've seen estimates up to two million a barrels a day of additional demand. obviously it all depends really on the weather. the weather will impact not just the demand for heating but also how well wind performs and how well hydro performs which will impact how much crude oil is actually needed for power and heating. so i would be a little bit more conservative in the sense that i do think that the market is already pricing in a very cold winter. and learned its lesson last

winter was very cold and on the on a protracted basis europe and asia. so i think that's already priced into the market. and really i think the only issue will be if it gets very cold very quickly that might really cause that fear factor in the market. but if on average temperatures are -- where they were last year, i think the market already priced that in. shery: what are you expecting in terms of power, energy market changes in china given now the crisis that they face? tamar: yeah. so it's been a perfect storm in china as well in terms of coal not being up to snuff in terms of rapid supplies and issues with the regulatory environment there. hydro also didn't perform. and then they weren't able to get their coal supplies from -- from australia for other reasons. so i think that you heard the announcement they want to secury

and at all costs, sthul you will see more -- i think you will see more diversification in terms of what they use for energy and a definite place for u.s. l.n.g. to supplement what they weren't able to make up for from coal. haidi: the director of energy capital markets. always grait having you and your thoughts. and the interview from the conference that we will be speaking with the chairman and co-founder about the outlook for global aviation. this is bloomberg.

haidi: south korea's actions against foreign and domestic giants are drawing parallels with china's recent crackdowns. google is the latest to feel the heat with the country's antitrust watchdog investigating the company's business practices. we spoke to the chairperson of korea fair trade commission in an exclusive interview. disbloonchts we want to see -- >> we want to see what they mike and what changes they are actually putting to this market. and another one is we are investigating some of the activities of other group of related ones. we completed one investigation into the group's activity. and in the case of google,

google might be like hampering the right of companies to form -- their obligation in other -- and the investigation is completed and we -- our deliberation process could start shortly. and in other cases, we are currently investigating and also like the payment for services as well. >> it seems south korea taking the lead in targeting big tech companies. what are the priorities in tech regulations and do you have any specific goals or direction for these investigations? >> have found the online platforms are players in global innovation and for us our top

priority is to maintain a driver of the market. so in order to maintain the innovation in the market, we have been trying to be in the market at the a lot of possible way. so in order to protect our competition in the market, and at the same time, in order to -- for innovation in the market we are trying to provide the basic structure in the market. that's our key priority. >> do you have any message for the industry players and market players who are -- well, some of them are worried about potential like tightened regulations, the country, and do you have any message for them? >> our top priority in our rule enforcement is to increase the competition and also to increase

the activities in the market. what we are trying to do is provide the more fundamental rules to the market. and we hope to see that the market becomes more competitive and also we see that in the market, like a frare transparene system. and we have a fair system where the companies and new entrants, they grow together and innovate together and eventually that's going to enhance the welfare. so i want to say to the market players and investors, trust us. we are trying to -- we are here to help you. shery: the fair trade commission speaking with bloomberg news. for more implications on the

korean markets we hear from james lim and csla analyst in the coming hour. facebook saying its services are starting to come back online after suffering a devastating outage. the shutout many of the 2 1kwr-7 billion global users from its social media apps. including instagram and what's app. joining us now for the latest is bloomberg tech reporter kurt wagner. kurt, what happened? >> well, we're still trying to figure that out. we're expecting hopefully the company will explain in more detail some time tonight. but the services are starting to come back online and we believe that there was a domain issue. so essentially the technology that directed you to facebook when you typed in facebook.com was not working. so when you're typing in the domain, it wasn't actually connecting you to the service. and it obviously took them the better part of the work day to get it fixed.

haidi: we're hearing the sentiment including from a.o.c., most high-profile criticism as to this is what happens when you have such a concentration of three of the most broad will he used apps in communication services, globally concentrated within one owner, right? is this going to intensify the sort of antimonopoly criticism of big tech? kurt: possibly. although i don't know how much work was actually stalled today outside of facebook. so, for example, i know i was still able to work all day. he used twitter. i used i-message and other services to communicate with people and so, you know, on the one hand, yes. it shows just how widespread and how many people facebook touches that this became like a global story today. but at the same time, you know, the world still moved on, right? and people were still able to continue to do things. so i could see arguments for both sides. but i think given the scrutiny around facebook and how big it

is, this is certainly going to be held up from critics as an example of facebook being too big and too powerful. shery: and we had that whistle baylor revelation as well. kurt: we did. and it's a really busy couple of days for facebook. late night the when ial blower who -- the whistleblower who had given documents and did a 60 minutes interview and accused the company putting profits ahead of user safety. we're going to see more of this fallout starting tomorrow. the whistleblower is going to speak before a senate subcommittee on how facebook, whether or not facebook keeps kids and teens safe on its app. so this is a story that will continue. i mean, outage today was almost a distraction in some ways from these bigger issues about how facebook operates. but those are going to continue to be front and center, starting tomorrow morning quite frankly when this whistleblower testifies before congress. haidi: and after hours a lot more productive with all of

those outages. and bloomberg tech rotter. tune in to bloomberg radio to hear from the big news makers. in-depth analysis from the daybreak team and our broadcasting live from our studio in hong kong. you can listen in via the app. that's radio plus or on bloomberg radio -- bloombergradio.com. we have more ahead on "daybreak: australia." this is bloomberg.

shery: a quick check of the latest business headlines. j.p. morgan c.e.o. jamie dimon has defended his pay saying the bank's board decides what he makes. diamond was -- dimon was awarded $31 million compensation last year. and was recently given a surprise five-year retention bonus. he told axios that the cio compensation is behind a broader umbrella to retain senior management. >> does it fair you make 400 times what the average j.p. morgan employee -- >> my board decides what i make. >> but i'm the chairman of my board and if i told them to lower it they would lower it. and fatherness -- >> they would be offended. shery: qualcomm has partnered with newly formed private equity firm s.s.w., the complex transaction, a lengthy battle for control of the auto tech company. the $37 a share deal is an

e-tail 18% extreme over rival bid from magna international. they will carve out the autonomous driving operation for qualcomm and find owners for the rest of the business. the autonomous vehicle unit of g.m.-backed cruz will see its ride hailing business become a $50 billion operation over the next couple of years. sources say the c.e.o. dan aman will present those plans to investors this week. he's expected to say that cruise will charge for rides as soon as next year and will expand if it gets the green light from california regulators. bloomberg being told b.h.p. is in talks to buy into a copper project in the democratic republic of congo. b.h.p. said to be in early discussions with billionaire robert freedland's ivan hoe mines for a stake in the western project. the huge exploration project is

near an ivan hoe mine and a policy of shunning risky jurisdictions. the annual general meeting is taking place in boston, according to the industry's main lobby. airline losses stemming from the coronavirus pandemic are set to surpass $200 billion as travel curbs weigh on corporate and long haul demand well into the next year. joining us from the event is ajay singh, the airline's managing director of spice jet. great to have you with us. give us your expectations about how the recovery looks from here and it has been a horrible couple of years but it does seem like we are getting some optimism with parts of the world reopening including here in asia as vaccinations start to pick up. ajay: yes, of course it's been a horrible two years. but it seems like things are on the mend. if you look at the pace of vaccinations, around the world, including in my own country india where we are actually

putting an average 10 million vaccines every day. i think that augers well for the industry. we've seen the pickup in our country and at about 60% of the pre-covid level. when we meet people around -- in our meeting, i think any country, that they have crossed the 50% mark of the pre-covid traffic. and what has been affected is long haul traffic. and that will take a little bit of time to normalize. but domestic traffic in several countries is looking quite strong. haidi: when it comes to soaring oil prices crude at a seven-year high, how well hedged are airlines? ajay: well, oil prices have a huge -- are a huge factor and not many airlines are well

hedged at this point in time. hopefully as demand picks up, we can pick up to cover for this cost. but definitely i think, you know, we were in a far worse situation during the peak of the second wave. and things are certainly improved from there. and i think many of us, many of the airlines, alternative -- in such cases, the cargo business, which is already quite strong, it's growing very rapidly. we should do about $350 million this year in that business. and i think several airlines have found that cargo logistics has been something of a savior for them. shery: and you just relayed your plan to row start the 737 max operations. why was that and what's the plan here?

ajay: the 737 max has been grounded for a long time. and our unit has just cleared that very recently. and so we have aircraft which are on the ground which we hope to put up in the air by november. i think starting on october 8 and october 9 so we also have a large number of aircraft at the facility. and, you know, if we are able to arrive at some settlement with boeing, we hope that we can put many more of those aircraft in the air. shery: let me ask you about air india. because you have a personal bid for the privatization here. what are your expectations given that you're also going against tatas? ajay: well, that's really not for us to comment on at this point. we are under a non-disclosure on those arrangements. the government, the bids are in.

the government has to evaluate those bids and take a call. and i expect that that should happen over the next couple of weeks. haidi: ajay, great to have you with us. ajay singh, chairman and co-founder. and sophie with a check of what to watch this tuesday of the decision day here in australia. soph. sophie: our decision today and with inflation anxiety top of mind on materials, b.h.p. and in particular after its escondida operation reported soft copper production from chile as did the world's biggest copper company kodelco. commodity prices, the gauge of raw materials to the highs last seen before the china-led supercycle. that busy eke owe agenda by the r.b.a. decision likely to be a non-event with bets for -- showing you what's going on on the agenda and we get services, p.m.i. for september and a final reading of retail sales as for the upcoming trade data for australia, softer export growth

is anticipated with consensus for a 3% once a month drop for august. shery. haidi: we will be waiting for the open in centrallia a few minutes' time. airbnb is next as -- gaish gash is next. and we see head behinds. the s&p 500 here in the u.s. fall below that 100-day moving average. although we continue to see a little bit of a rebound when it comes to u.s. futures. you can see the us a he dollar trading at that 73 level. it did gain some momentum after prime minister scott morrison announced bans on international travel will be lifted in november which is a month ahead of schedule. so we will be waiting for the market open there. this is bloomberg.

♪♪ >> hello from bloomberg's world headquarters in new york i'm shery ahn. we are counting down to the major market open. haidi: i'm haidi stroud-watts in sydney. asian stocks are set to fall, declines on surging commodity prices and how that could spare inflation. president biden warninghe