>> hello and welcome to "daybreak asia". sophie: i in hong kong. we are counting down to asia's major market open. >> our top stories this hour. apac investors weight inflation and taper concerns after wall street extends its rebound. asian tech make it a boost with reports of beijing breaking down the online search barrier.

we hear exclusively from boris johnson who's at the u.k. does not want to generate -- to turn away chinese investments despite tense relations. pm johnson: china is an economic -- as a part of our economic lives and will be for our lifetimes. that does not mean that we should be naive. haidi: let -- let's get you to the start of trading with sophie kamaruddin in hong kong. markets continuing to really try to work out what's going on when it comes to the inflation front. sophie: that's the case with them continuing on the short end when you have the aussie five yield jumping to a may 2019 hi. when it comes to the stock story, take a look at the asx i 200. minors we are seeing under pressure after a three-day event. this on the back of a trading

update. iron ore shipments missing estimates 5% on a yearly basis. do impart to the covid impact on labor. checking in on the owsley dollar. slightly under pressure above the 74 level. we are seeing shorts scaled back filled for rba tightening, which could push the rba back to the peak we saw in july. sticking to the bond story, let's check out what's going on with kiwi yields this morning. we are seeing events continue with two-year yields above 172 at this morning at the asian session following the repricing they need from the rbn thread. check out futures continuing to -- to decline. it has strategists like barclays abandoning their short treasury. when it comes to chinese bonds that have joined the global bond selloff, they see the 10 year yield threat -- rising to 3.2% for reversing the move to come

back toward 3% or lower. the gdp growth has several forecasters back to the drawing board. the likes of ubs included. they now see 20 economic expansion for china. haidi: let's take a look at great expectations. one investor said the market expected by september of next year that we have lift off from the fed. we are talking about the head of fixed asset -- fixed income strategy, and he sees that lift up according to the dot plot in 2023. take a lesson for why he thinks the money market has got it wrong at the moment. >> the marketers try to figure out whether policymakers will lead against the inflation that we are seeing. our view is that currently there are too much rate hikes pricing for 2022. haidi: he said the fed is giving

indications that all of these inflation risks will still be transitory. just as another prominent voice to what has become a very loud debate. and in that debate we are hearing the likes from j.p. morgan hearing that the market is a little bit ahead of itself. we are talking about the call about the stagflation concerns and the market jitters are misplaced that growth will come in. and that this shift we are seeing into value and to reopening trades, that continues. perhaps a little bit of a call coming from prominent investors and analysts. perhaps we should step back a little bit and take things easy. chill out a little bit and not be too concerned about inflation. haidi: maybe chill out on china when it comes to our investors. that's the other major risk when it comes to chinese growth and global growth. regulatory oversight.

china is now said to be weighing up attentional opening up to search activities. we are hearing that china is considering asking media companies like tencent to let them display their content in search of the result. this move could further eradicate online barriers, shakeup the internet. so this is another front for well we see as a multiple tax when it comes to the tech sector and the big tech giant and. shery: credit suisse is nearing a deal with the u.s. over at to billion-dollar mozambique bond scandal. that's according to those speaking to bloomberg. it will include a fine. it will involve a criminal probe over the 2013 and 2014 bond deal. any deal with u.s. prosecutors

will be the latest action in this multiyear, international legal saga that started when those deals that were supposed to fund a new coastal patrol force in mozambique, it was alleged by the doj that those contracts were a front for government officials and bankers to enrich themselves. so credit suisse is close to finalizing that with the u.s. over that mozambique bond scandal, according to sources speaking to bloomberg. turning back to china, sweeping economic and regulatory overhaul , which are starting to hit over near -- ordinary citizens. let's bring in stephen engle in hong kong. do regular changes go too far, especially giving the changes we've seen out of beijing. stephen: it's a balancing act for regulators because there have been a confluence of stocks. whether it's in property or

energies, and obviously, as heidi mentioned, big tech has been under pressure for some time. it is starting to hit ordinary citizens with higher power bill. lost savings and potentially fewer jobs. obviously beijing wants to control debt loads. especially at the higher leverage property factors. at what cost to stability. already starting to see signs for the regulatory purchase we have seen over 2021 are starting to be doubt that just a little bit. in banking and mortgage, we are hearing the big state owned banks have been instructed to fast-track approvals for mortgages because properties are still a key pillar of the economy. also on the energy front, the premier expressed caution on china's near climate issues, saying china needs to rethink

its energy transition. it threatens to keep factories idled in homes kind of cold without heating during the upcoming winter. he has to sort -- assert his authority, which he has done over the last 10 months of 2021. we had there next month, and the big party congress next year where he will likely have a third term, and unprecedented one. but he also has to be very wary of any economic shocks that could undermine that authority. haidi: when it comes to big tech, we spoke about at the top. what's the significance underway breaking down those guidance.

stephen: it's what regulators have been going after. alibaba and tencent have created these all enclosed encompassing ecosystems whether it's we chat with the various platforms under the alibaba umbrella. but what that has done is channeled advertising spending and marketing spending within those closed ecosystems. so that kinda has shut out the search engines. so what we are hearing is they are mulling regulators. am i i.t. is experimenting in consulting with the idea of breaking down those walls. they are all of the sudden popping up in baidu's searches. also the domestic equivalents of tiktok from bytedance. those videos showing up in other

search engines. it's breaking down those walled gardens, which is another way of expressing the monopolistic behavior on the part of these platforms. haidi: our chief north asian correspondent stephen engle there with the reglet tory crackdown. boris johnson said he does not want to turn away chinese investment despite the concerns of his own lawmakers. he spoke exclusively to bloomberg's editor-in-chief and a wide-ranging interview, which also touched on which actions the u.k. is seeking about climate change ahead of the summit. p.m. johnson: when i was running london, i went out several times to china. i had fantastic trips. >> but things have changed. p.m. johnson: the investment in stuff that drives jobs and growth in the country, whether it's in development, whether it's what's happening in

greenwich, things have taken off there because of chinese investments. so i'm not going to tell you that the u.k. government is going to pitchfork away every overture from china, of course not. china is a gigantic part of our economic life, and will be for a long time, for our lifetimes. that does not mean that we look at our critical infrastructure, power, 5g technology. these are legitimate concerns of any government. i have said this many times and it's worth repeating, i am no

xenophobe. >> do you think you are the last sign a file in the capital? p.m. johnson: no, china is a great civilization. >> would you let them by offshore wind power? p.m. johnson: you would have to look at what was what you are defining as strategic or critical. but i certainly think that -- i will tell you the relationship with china. in spite of all the difficulties, in spite of all the angry conversations or the difficult conversations about the dalai lama, hong kong or the uighurs, we will continue to spit -- to stick to our points. we will continue to stick to our views. trade with china will continue to expand for a long time, and i think it will probably continue to expand for the rest of our lives. that doesn't mean that we should

we should be cautious about how we handle our rc and i and how we handle fdi in china and that's why we brought in the legislation we have. >> we were talking about china, a huge deal to come. xi jinping looks unlikely to come at the moment. what is your personal goal in terms of this? p.m. johnson: i think it was always going to be tough. we are hoping we will get a good 10 items in spite of the pandemic and what we want to focus on is the naturally -- nationally determined contributions making those hard pledges. plus we want commitments on coal, cars, cash entries. we want the world to move away from coal by 2040, 2030, but further developed nations. we want to make sure that everybody stops using hydrocarbon fuel and internal combustion engine cars.

that you so we would stop that by 2030. we want a big package for the developing world. we need that $100 billion. we want to make sure we plant millions and millions of trees to help to fix the carbon and to restore the balance of nature. we need to keep 1.5 alive. we need to restrict the growth in temperatures to 1.5 degrees by the end of the century. we could do it, but we will need to see some real action by the participants in glasgow. >> u.k. prime minister boris johnson speaking exclusively. let's get the vonnie quinn with the first word headlines. vonnie: the sec has debunked

some conspiracy theories surrounding the trading. a new report analyzes retail traders taking on wall street. they said several market dynamics warrant closer scrutiny to ensure selling and payments to order flow. it does not offer specific policy recommendations. india is nearing a milestone of one billion vaccine doses. however, the gap is widening between people fully inoculated. bloomberg data shows 20% of india's population is double does. 51% had a single job. they point to a mix of factors for the lopsided statistics, including less urgency giving falling case numbers. carrie lam is in the hospital after suffering a minor right elbow fracture. a vigil said she fell at her governments house on monday night. i am will remain in hospital. the chief secretary will act as

leader. an executive council meeting scheduled for tuesday has been counseled. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. haidi: apple takes its most aggressive steps yet. we speak to them to talk about the latest device overhaul. conviction trades from the head of asia research is going good. how he's dealing with the dollar risk here in asia. this is bloomberg. ♪

>> central banks are in place for the first time in a very long time. they are facing some policies. they are saying they are

constrained about how to be as easy as possible and move money as easy as possible. >> the fed needs to redesign what they think of as an acceptable employment level, or they will stay too long. >> any time the fed whispers they are going to tighten, you see the wall of worry increase in the markets trade-off. >> the central bank is running the markets. the question is whether the economy in the west can function without the central bank pricing. and i think the answer is, we don't know. >> they may make a policy mistake hereby waiting too long's. -- too long. shery: some guest speaking to bloomberg television. our next guest says risk is tilted towards markets pricing in an earlier rate hikes. that's bring in the head of asia research. always great to see you. we really are seeing markets already expecting full tapering from the federal reserve. we saw singapore preemptively

tightening last week. we are seeing the be ok governor now opening the door for potential rate hikes in november. addie position for more central-bank action as of now/ ? >> i think we are starting to see inflation really become a soft spot of concern. tapering its pity much a done deal that's priced them by the market. it's not going to be a major mover for markets. but what is coming to the floors inflation concerns and the growing worries around the slowdown in china. in terms of how it impacts, either gets going to be a different shape of effects on different currencies. like korea and singapore, it's because the monetary tightening and normalization will be beneficial for their currencies. in terms of the inflation risk with particular oil and cold, it

will bring the intonation rupiah and one of the key trade convictions is its fully processed to take the dollar risk out. shery: what about the china uncertainty, given how badly china has already been hit? could we find some value trade over there? >> the yuan remains remarkably stable throughout the last few months, even if it was moving higher, the yuan has managed to stay relatively stable. we have been recommending going long. however, we have now seen it arising above 100, and i think it's getting to a level that they might start to rein in. it's starting to turn a little bit more neutral. i think we will just wait to see if there are any signs of a

pullback before we decide to reinstate the position. haidi: how much continued divergence what we see when it comes to asian central banks? some have started their tightening cycles already as we see the society of global inflation plagued the likes of the fed. khoon: this divergence and monetary policy will be more in 2022. the various economies in the region are going to a very uneven recovery. i think is starting to reopen now, international travel is opening up in some countries. so you are going to see an economic recovery. it will show how central banks will set policy. korea and singapore has started on that process. this will follow suit. before example, indonesia will lag behind because inflation is very low at the moment.

and they have plenty of room for inflation. and they start to get a little bit more concern. i have seen inflation above the target range and the governor recently pushed off any hints about potential tightening. they might start to come under pressure once the philippines start to open up and see inflation pressures really start doing much. haidi: the rrr currencies are better places time around to withstand tapering? khoon: yes, if you think back to 2013 during the taper tantrum in indonesia. this time around, indonesia in particular is rocksolid because they are now running a very small account deficit. in fact, given what has been

running recently for prices, i think it's a good chance that it might run a counter surplus this year. it's been the first time since 2011. that's why the rupiah has performed very strongly. also, it's an attractive high-yield. so the trade will continue to favor indonesia. and on india's part, the rupee has been recently on the back of the high oil price spike, but the current account deficit is nowhere near what was lost a few years ago. i think india is still attracting fdi inflows. is the potential for indian governed bonds to be included. i think that will keep the rupee reasonably stable. haidi: always great to have you. they head of asia research. you can watch us live on our

interactive tv function, tv . you can dive into any securities or bloomberg functions we talk about. join in on our conversations. this is for bloomberg subscribers only. do check it out, it's at cb go. this is -- tv . this is bloomberg. ♪

>> is a quick check of the latest business flash headlines. iron or exports slumped almost 4% in the september corder. this use of planned maintenance work and labor shortages caused by labor restrictions. the world's biggest miner reported sales of 71 million tons lower than the previous quarter of 74 million. gorman saxes capping the u.s. investment rate bond market with a $9 billion sale. we are told the bank is issuing debt in five parts. sources tell us it will mature

in 2032, and will yield 105 basis points of treasury. apple unveils its biggest overhaul in years. we will discuss with asia senior research manager. this is bloomberg.

vonnie: this is daybreak: asia. prime minister boris johnson says is not about to reject offers of chinese investment despite the concerns of some of his own lawmakers. decisions to bar chinese companies could hamper communications and condemnation of china's human rights record has soured. johnson says he remains pro-china. >> i am not going to tell you that the u.k. government is going to pitchfork away every

overture from china. of course, not. china is a gigantic part of our economic life and will be for a long time, for our lifetimes. that does not mean that we should be naive. vonnie: china's communist party will convene for the first time in a more than a year from november 8 to 11. plenary sessions are typically the most important events. they bring together about 400 state leaders, ministers, military chiefs, and top academics. the meetings are excited to pave the way for extending xi jinping's term. the european union may trigger a new -- to freeze funding for member states failing to adhere to democratic standards. the so-called conditionality mechanism could be applied towards hungary and poland which are accused of rule of law violations. hungary, 7.2 billion euros, and

poland, 6 billion. the legal order can be deployed within days. >> at the moment, we are trying to build the most positive -- to react. we need to pay attention to a link of such policies and the rule of law, democracy. if we are not doing it at home like we are trying to do now with brussels, it will be difficult to be credible about the same principles. vonnie: colin powell, the first african-american to be secretary of state and chairman of the joint chiefs of staff, has died to covid-19 complications. in a 2003 speech to the u.n., he claimed iraq's saddam hussein had weapons of mass destruction. he was 84 years old. global news 24 hours a day on air and on bloomberg quicktake

powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. shery: asian markets lacking clear direction early in the session. let's turn to sophie for what to watch. sophie: half an hour into trade for sydney stocks. fluctuations with gains being capped with the drags we are seeing an energy, materials and consumer staples. bhp posting a three-day gain after posting a drop for the third quarter. it did maintain its annual output of guidance. the world's largest miner of metal backing the fund to invest. tech stocks rising nearly 2% in sydney, including zip gaining ground after reports of strong first-quarter. looking at aussie bonds, the head of the rba meeting minutes, it is taking a breather

as a 10 year yield is studying. just holding above the 78 level. we do expect the belly of the curve to underperform in the months to come. ahead of a 20 year sale in japan, we futures sticking slightly higher. the option is likely to be seen, but they cautioned against the risk of yields climbing further. this is as bets continuing inflation. haidi: apple has announced they will replace chips from intel with their own once. is it going to be able to make up for the supply chain problems that have been well heralded? let's discuss with kiranjeet kaur from idc asia-pacific. always great to have you. the ambitions have been happening for a while and the chip has gotten excellent reviews from most market watchers. is it going to be enough to overcome what we know is a

pretty dire supply chain situation going into the holidays? kiranjeet: right now, the situation is no one is really insulated from these component shortages we see in the market. for apple, i would say it's kind of better insulated that some of its competitors. when we look at cpu's, chips in the iphone, those are kind of in a better place. then, there are other components that go into the phone. you will choke point at various points in the supply chain. there are chokepoints. i will say apple is not completely insulated to some of these. haidi: when you take a look at the product release though, were you impressed? is it going to be enough going into this crucial season and

continue refreshing the demand cycle for apple? kiranjeet: i think it is a big deal for apple that they are planning to come out with their own m1 chip, for the macbook. i think it will spur demand for the macbooks in the holiday season, but i think the challenge may be to get to the consumer day one and all of those things, the iphones, macbooks and other devices they have launched recently. shery: the ceo of intel speaking to media, hoping to win apple's business back by out competing it when it comes to those chips. do you think this is still feasible? kiranjeet: i mean, if you look at apple, what they have done with the iphone, there is no

going back except in case they need a modem for 5g. otherwise, we have seen the integration apple has been able to bring with their old hardware and software and giving better performance compared to competitors. i would think it is going to be really hard, but who knows? shery: what do you make of the unleashed event today with apple's new product launches? give us your key takeaways. kiranjeet: i would say for apple, the last 1.5, two years has been pretty good. same for the device makers across all categories. for apple, that has grown faster than the competitors last year. we have seen when they came out with macbooks with the old chips which spurred more demand.

i think that will continue to happen. there is going to be a strong demand from the -- consumer side, as well as for the macbooks. coming into the holiday season, i think there has been more spending. more on products, more on goods rather than services. and getting back to the normal, there will be some diversification of consumer spending. i think it would pretty heavy in terms of what consumers spent on devices. shery: always write have in your insights. idc asia-pacific senior research manager of client devices. next, more from our exclusive interview with u.k. prime minister boris johnson, who is calling for real action on climate change. >> we need to restrict the growth in temperatures to 105 degrees by the end of the century -- 1.5 degrees by the end of the century.

we think with the commitments we are doing, we could do it, but we are going to need some real action. ♪

shery: u.k. prime minister boris johnson is demanding real action on climate change, but says the talks will be extremely tough. in an exclusive interview, he called for nations to harden

their promises to slash emissions. p.m. johnson: we are hoping we will get a good turnout in spite of the pandemic. what we want to be able to focus on is the contributions and reducing the co2, making those hard pleasures. we want commitments on coal, cars, cash and trees. we want people to move away from coal by 2040. 2030 for the developed nations. we want to make sure that everybody stops using hydrocarbon fueled, internal combustion engine cars. the u.k. is in the lead there. we said we would stop that by 2030. a big package for the developing world to help countries who have not been historic commanders -- emitters to cut back. what we need to do is make sure we plant millions and millions of trees to help to fix the

carbon and restore the balance of nature. we need a national contribution. we need to keep 1.5 alive. we need to restrict the growth in temperatures to 1.5 degrees by the end of the century. we think with the commitments we are seeing, we could do it, but we are going to need to see some real action from the participants in glasco. haidi: the u.k. prime ministers speaking exclusively to our editor-in-chief. johnson is planning to use the talks are showcase u.k. leadership on climate change. with the ongoing pandemic and energy crisis threatening to curb the success. give us your reaction when it comes to the goals that johnson outlined there. >> as prime minister johnson

said, the current energy crisis is making it even more challenging. the current energy crisis means that in europe, countries are now turning back to more late nights which is the morphs -- worst kind of coal. even the u.k. has turned the coal power plants on more. the europeans are doing well but emissions this year will be higher than last year and very likely higher than 2019. in asia, emissions will likely be higher, which makes it hard from a physical perspective to continue to keep that 1.5 goal alive. then, there is the whole public perception and how that challenge is more political action in terms of accelerating energy transition. shery: when it comes to the energy crunch in asia, is there anything unique about it, especially compared to what's

happening in europe? ali: yeah, so when we look at asia, we are primarily talking about what's happening in china and india. in both of those places, it is primarily a domestic supply chain issue. in europe, it is primarily a gas issue. in asia, both china and india have had some disruptions to their coal supply. drought has reduced -- there's more volatility as a result of climate change which is affecting energy systems all around the world. haidi: the energy crunch, rising energy prices -- we are hearing a lot of the critics of climate action saying this is why the transition to greener forms of energy is not sustainable. it will be more expensive.

this is an indication of it not working. is this going to be one of the downsides they will face before we get there? ali: unfortunately, there's a real risk that this incorrect perception will result in lack of political will to accelerate energy transition. just to be 100% clear, the current energy crisis is primarily a fuel issue. there is nothing with renewables. some people argue the move from the vestments of fossil fuels has resulted in this. when we look at fossil fuel production, there really hasn't been any shortage of fossil fuel production. it's dislocations on the supply that have been caused by the pandemic. but, that public perception issue can hamper political action. we have to see, there are already indications that china and india are hesitant to commit

to a coal phaseout target which is one of the goals the u.k. has set for this year. the other goals, unfortunately, the g7 leaders shot themselves in the foot by not accelerating pledges to meet that $100 billion that was promised to developing countries. there's a little bit of another issue before the energy crisis where developing economies had not given enough incentives to accelerate their targets. haidi: ali, head of asia research there. take a look at what's happening in the commodities space. the energy crunch is being felt across the sector. we are seeing the energy crunch leading to supply disruptions. continuing to gain ground. we saw aluminum steadying a little bit, but this after reaching the 2008 record high. it is still around the levels.

copper, we saw the rally last week. a little bit of consolidation in the monday session. iron ore has been swinging between gains and losses. we will be tracking closely what's happening with the chinese economy. the gross forecast in the fourth quarter. steel output posted it's never -- its biggest ever decline. a fresh record high, as we continue to get stronger petroleum prices. oil futures rallying. that is increasing the appeal of palm oil as an alternative. we continue to watch what's happening with the energy crisis in china. it seems we might not get any relief anytime soon because it seemed to have started earlier, especially in eastern parts of china. the north has seen snow already. what does that mean for that energy shortage? we have seen coal surging to

record highs. haidi: we have seen regulators, policymakers really trying to lift confidence that there will be sufficient energy to be able to get china through the winter. certainly, if you look at these cold temperatures, the need for earlier heating, potentially we will see another round of these electricity price surges and potential shortages as we get into the coldest parts. i have been through many a beijing winter and it is very cold. you absolutely need heating, unfortunately. shery: those parts of china can get really cold. lots of parts of asia, in fact. you can follow what's happening in the commodities space and other stories need to know in today's edition of bloomberg daybreak. go to your terminal and also available on the bloomberg anywhere app. you can customize your settings you get the news on the assets you care about. this is bloomberg. ♪

haidi: we are counting down to the start of trading. the are some of the stories we are watching today. toyota planning to invest three point $4 billion in the u.s. through 2030 to establish a new company and build its first local battery plant. just days ahead of the election, the prime minister sticking with plans to keep the sales tax.

opposition groups are calling for a tax. he says the current rate is needed to fund social security. we will be want the energy space with spot power prices set to stay elevated. a shutdown will curb supply ahead of the winter. speaking of energy, in south korea, the presidential carbon neutrality committee proposing two areas for ending power generation. lg energy planning to construct a battery plant in north america which could supply the carmaker's growing fleet of electric vehicles. they are aiming to start production of the site during the first quarter of 2024. haidi: we are seeing positive sentiment when it comes to the crypto space. when it comes to trading in bitcoin, rising over 1%. under that $62,000 level but holding firm over $60,000.

we had a bitcoin bull saying this yet to be launched etf trading bitcoin futures could attract more than $50 billion in inflows in the first year. he's got that $100,000 price tag on bitcoin by year-end. the estate you can go as high as of hundred $68,000. we are seeing a bit of a rising ethereum. up about .3% for the galaxy crypto index. we are seeing this latest leg higher when it comes to this crypto space as we see the proshares etf preparing to launch the bitcoin futures fund on tuesday. this would be the end of a wave for those who are looking for security that tracks bitcoin on the u.s. stock market. shery: the sec also releasing its highly anticipated report on those meme stocks that created a trading frenzy in january.

debunking many of the conspiracy or is these -- conspiracy theories around gamestop and others. it also supports greater scrutiny of regulators. su keenan joins us. the report changes the narrative. so, it wasn't a short squeeze? su: it certainly throws cold water on the theory that we all believe that the beginning of the year that an army of retail traders are waging war on the wall street short-sellers, buying up shares of unloved, struggling stocks like gamestop, amc, and others, and forcing the professional traders in a massive short squeeze that sent stocks higher. there were posts on reddit and twitter titled "to the moon." it was an unusual phenomenon that wall street had never seen before, by the sec says evidence does not show that gamestop short covering was the issue and there was a small fraction of overall buy volume.

and that the company's share price remained high even after direct effect of such short covering. you can see where this bike was in january, early february. year-to-date, gamestop, 888%. amc up better than 1900% year to date. what we've got is a report that says with positive sentiment and not the cover that sustained the weeks long price depreciation of gamestop stock. it also supports theories that there really was nothing wrong here. that the market showed resilience. as for the outrage that surrounded broker robinhood's decision to restrict trading in late january, they found there were many factors that warranted that at the time, such as margin calls that needed to put up more money. haidi: what did the report have

to say when it came to the impact on hedge fund? su: that's another interesting part of the report. it said hedge funds as a whole were not negatively affected by this big trading frenzy. in fact, they found they were not significantly affected by gamestop and other meme stocks. they also seem to support with the market showed, that many hedge funds actually benefited from this trading even though the melvin hedge fund was widely reported to have lost a lot of money. the report very much supports the chair's gary gensler's push for tie for -- for tougher rules and pushed for areas that merited a closer look. one of the factors that -- they want to look for payment for order flow. that is another issue. they want to know incentives that online brokers are using to incorporate game-like features in their app increase trading.

they want to look at dark pools and market movers. sit adele and virtue were earlier looked at in the year. they want to take another look at shortselling. the meme stock phenomenon is still very much a part of the market now. it can result in wild swings in certain stocks, but it is also very much on the radar of the sec. shery: bloomberg's su keenan with the latest on the meme trade frenzy. let's turn to sophie for what stocks to watch as we head to the market open in japan and south korea. sophie: we are keeping an eye on asian suppliers, specifically those related to laptops, as the company releases new details about the macbook pro. this after it was downgraded by morgan stanley. haidi: we do have the market open in south korea and tokyo upon us, as investors tried to cackle at the risk of inflation. a lot still standing firm

that the fed is sticking to the transitory narrative even as prices continue to jump. we are seeing nikkei futures up .7% ahead of the start of trading in a few minutes' time. this is bloomberg. ♪ it's moving day.

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♪ haidi: welcome to daybreak asia. sophie: i'm sophie kamaruddin. haidi: i'm haidi stroud-watts, taking a look at the major market opens across asia. apec investors timber concerns after wall street's expense its rebound. beijing could break down online search barriers. we hear exclusively from boris johnson who says the u.k. does

not want to turn away chinese investments despite tense relations. >> china is a gigantic part of our economic life, and will be for a long time, for our lifetimes. that does not mean that we should be naive. shery: japan and south korea coming online. sophie, how was the open shaping up? sophie: the nikkei futures higher by .3%. we are seeing the likes of adventist gaining ground. chip related players. yen trading above 114. ahead of of the 20 year bond sale out of japan, we do have it gaining some ground. some reversal that we saw as of late. in korea, laptop and audio component makers. keep an eye on chipmakers.

we are coming down to the report card due next week with sales maybe lowered by weak chip prices. the korean won is gaining ground, trading below 1186. ahead of the rba meeting at the bottom of the hour, goldman out with a note saying they predict home prices in australia will peak next year. the property market will be closely watched and whose around the minutes will be anticipated along the tightening path for the rba. with that in focus, we are seeing bear planning for aussie bonds. taking a bit of a breather this morning with a 10 year yield now heading lower by about two basis points. when it comes to cash yields opening from the u.s., the 10 year is lower this morning. this with the inflation debate

which has oil at the center of that, along with other energy components. brent holding steady this morning while we have wti holding around the 82 level. keeping a close eye on chinese bonds, 3.2% with a 10 year from china. the growth outlook for the mainland after the third quarter report card we've got, growth is seen for the next quarter which has the likes of ubs downgrading their forecast for china. haidi: our next guest says asian equities face headwinds including a stronger u.s. dollar. the head of aipac equity strategy at hsbc. great to have you with us. in addition to the costs, we have the supply chain issues. we have the energy crisis as well in pockets of asia. if the upcoming earnings season

continues to come in at least meeting expectations, it is hard to see a scenario where stocks would trade lower from here. >> yeah, and a sense, that is a good way of thinking at the moment. you're right, there's a lot of headwinds. we've got regulations in china. a lot of uncertainty. all of that has led to the underperformance of asian equities throughout this year. if you dig deeperu guys were talking about gdp growth forecasting. if you dig deeper and look at the earnings numbers in asia and the forecast for earnings, they actually look not to obad. earnings growth, probabilities improving. margins are expected to rise this year. hey, commodity prices go up, that wouldn't be a problem. maybe. on the other hand, companies --

so, it may be a problem that goes a little better. haidi: given the divergence we have seen in central bank policy in this part of the world -- asian central bank started their tightening cycles. what are the opportunities you see in those gaps? herald: i think the way to look at it is also how people are positioned and it is being reflected in markets. if you are talking about positioning, i think being underweight on china is probably not worthwhile at the moment. the sectors are trading large discounts with valuations. the argument is not easy but at low valuations, you don't want to be too cautious. the india is the other market that is rather expensive. that is a bit difficult.

we're neutral there as well. that results in the positioning across the region. you can see inflows, growth numbers are coming back. we are more cautious on the other markets like korea, for example. there's a bit of tightening taking place there as well. that is something we are more cautious on. shery: given the disappointing gdp numbers coming out of china and the uncertainty related to the regulatory crackdown, what are some of the markets that are less exposed to the chinese story and perhaps can offer more value? herald: the markets that are less exposed to china -- there's a lot of uncertainty with china. the problem is with taiwan and

korea. they are heavily exposed. a lot of corporate sell into china, a lot of factories in china. you can see it in the markets. when china moves, korea and taiwan take a bit of a lead. that is not the case in india. shery: but then you call that expensive, so can you still go into parts of the indian market that are not as extensive? herald: you have to be very specific in india. it is not that easy. but on the domestic side, we think there's a bit of value. on the consumption side. you are very right. you go to india because you want to get away from china. where then do you go, right? it is really about a couple of stocks. if you are a large fund manager, what did you do? you are then not so much exposed to china. that's one of the reasons we see

money flowing into other markets of the moment. shery: i am a risk taker and really want to go to china despite the uncertainty. where do you go to? are there any sectors that have already seen a lot of the downside pressure priced in? would you see any value in the selloff we saw a recently? herald: yes. the story in china the last few years has basically been china and japan. tencent, alibaba, you did initially very well. about a year ago, you would have known it was on the way down as well. it was all about the large-cap stocks. we need to put them aside and drill deeper. you can do that by looking at all kinds of sectors, chinese property is very cheap but will it move? very difficult to identify at the moment.

what we need to do is goa little bit deeper and look at industries that are consolidated. companies that are not trying to reinvent themselves. companies that are in transport and moving to smart cities, or hydrogen or other technologies and reinvesting -- themselves. there industries that are consolidating. think about the airlines, for example. look at the nature of those industries. that is where pricing power is an growth. that is where you can identify opportunities. it means if you want to be in china, you have to dig deeper than we used to do in the past. shery: perhaps more of a bottoms up approach. hsbc head of apac strategy, thank you. boris johnson says he does not want to turn away chinese investment despite the concerns of some of his own lawmakers.

johnson's focus close of lita bloomberg -- spoke exclusively with bloomberg. they also discussed what action you can't is seeking on climate change ahead of the summit. p.m. johnson: when i was running london, i went out several times to china and had fantastic trips. investment and stuff that drives jobs and growth in this country, whether it is in development -- look at what's happening in greenwich. things that have taken off there because of chinese investment. i am not going to tell you that the u.k. government is going to pitchfork away every overture from china. of course not. china is a gigantic part of our economic life and will be for a long time, for our lifetimes.

but, that does not mean that we should be naive in the way that we look at our critical natural infrastructure, you mentioned nuclear power, you mentioned 5g technology. those are all legitimate concerns of any government. there are many other governments around the world that have them. i have said this many times and it is worth repeating. >> you think you are the last in the cabinet? p.m. johnson: no. china is a great country. >> would you let them buy offshore wind power? p.m. johnson: i think you would have to look at what you are defining as strategic or critical. i certainly think that having -- our trading relationship with china. in spite of all the

difficulties, in spite of all the angry campers -- conversations or difficult conversations about the dalai lama or hong kong -- we will continue to stick to our points. we will continue to stick to our views. actually, trade with china has continued to expand for a very long time and probably will continue to expand, as i say, for the rest of our life. that does not mean we should be cautious by how we handle our seeing eye, fdi into china. that is why we brought in some of the legislation we have. >> we were talking about china. xi jinping looks likely -- what 's a realistic goal, your personal goal in terms of copper? p.m. johnson: i thought it was always going to be extremely

tough. i hope we will get a good turnout in spite of the pandemic. we want to focus on the natural contributions and reducing the co2, making those hard pledges. we want commitment on coal, cars, cash entries. we want the world to move away from coal by 2040. 2030 by the developed nations. we want everyone to stop using hydrocarbon fueled internal combustion engine cars. the u.k. is in the lead. we said we would stop that by 2030. we won a big package for the developing world for countries that have not been historic emitters to cut their carbon. we need the $100 billion a year. the last thing, we want to make sure we plant millions and millions of trees to help to fix the carbon, restore the balance of nature. we need the contribution.

we need to keep 1.5 alive. we need to restrict the growth in temperatures to 1.5 degrees by the end of the century. we think with the commitments we are seeing, we could do it, but we are going to need to see some real action from the participants in glascow. haidi: the u.k. prime minister boris johnson speaking exclusively with our editor-in-chief. let'get to vonnie quinns with the first word headlines. vonnie: china's communist party will convene for the first time in more than a year from november 8 to 11. the central committee plenary sessions are typically the most important events. they bring together about 400 state leaders, ministers, law enforcement and top academics. the meeting is supposed to pave the way for extending xi jinping's term as leader. the fda is planning to allow a mix and match approach for covid booster shots.

the agency may act this week on the plan. the fda does not recommend one vaccine or another, but mesa it is preferable to use the same vaccine when possible. moderna's ceo says the company expects an fda decision soon on its booster shot. >> we expect this week potentially the authorization of a booster. there is a cdc meeting schedule this week. i'm hopeful by the end of the week, everything is wrapped up. and by next week, americans with the moderna vaccine can get the booster. vonnie: india is nearing a milestone of one billion doses. the gap is widening between those fully vaccinated and those with just one shot. 20% is double dosed. 31% have had a single job. experts point to a mix of factors, including less urgency

given the fall in case numbers. the sec has debunked conspiracy theories surrounding this year's frenzy of gamestop trading. the report analyzes the period when retail traders took on wall street, sending meme stocks soaring. the commission says several market dynamics -- including shortselling and payment for order flows, and did not offer specific policy recommendations. global news 24 hours on aaron on bloomberg quicktake, powered by more than 2700 journalists and analysts. i'm vonnie quinn. shery: still ahead, we will be joined by hong kong's virtual insurer after it raised over $22 million in its latest funding round. next, china may be considering breaking down online search barriers. we will look at what that might mean for the country's tech giant. this is bloomberg.

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shery: there are more signs of beijing dialing back its sweeping regulatory overhaul which is starting to hit ordinary citizens. let's bring in our chief north asia correspondent stephen engle. is there a sense that the regulatory changes may have gone too far, especially when you look at the latest gdp numbers? stephen: the gdp numbers for the third quarter -- obviously yesterday, they were disappointing because they dropped off considerably. many of the economists we talked to say this slowdown could persist into the first, even -- fourth, and even into 2022. you look at the survey of economists, that pessimism looks

like it will continue. there has been a confluence of shocks, economic shocks, regulatory shocks and energy, the property sector, big tech. it is starting to hit ordinary citizens with higher power bills, lost savings, and potentially as we get deeper into a potential slowdown, fewer jobs available. xi jinping, we know wants to control debt loads, particularly at property firms. they are heavily indebted paid he wants to quicken the transition to cleaner energy. he wants to break up perceived monopolies in big tech, but at what cost to growth is the question we have to start asking, especially given the gdp numbers we saw. we are starting to see some relaxation. in the property space, we are hearing big banks have been told to start fast tracking approvals for some mortgages. we have xi jinping's three red lines for property developers and controlling debt. there has been limits on

mortgage approvals and there has also been renewed talk about a nationwide property tax that has hampered developers as well. in climate issues, given the shortages, the premier expressed caution on climate issues, saying china needs to rethink china's energy transition has the power crisis threatens to keep factories idle and homes without heat potentially this winter. it is a delicate balancing act for xi jinping as he consolidates power through these regulatory issues ahead of the party meeting in early november and next year. i what cost to potential growth that could undermine the political authority that he has gained. haidi: potential growth when it comes to the tech sector as well because big tech is still coming under pressure. what is the focus now? stephen: absolutely. there has been no indication that regulatory crackdown is going to be easing anytime soon.

the latest news we have according to sources close to the situation, the ministry of information technology is reviewing a possible plan to break down the so-called walled gardens of the big platform companies, especially like tencent which has wechat. it could potentially open up these closed ecosystems forever tires -- advertisers -- for advertisers and marketers to add wechat content to searches by the likes of baidu. it could add thousands, if not tens of thousands -- millions of tiktok videos into search engines from third parties like baidu. baidu has been kind of walled off from those closed giant ecosystems. that is one reason why we saw baidu shares surge more than 4% in hong kong. this could potentially be good news for baidu but it is another example of breaking down those

walls of those closed ecosystems. haidi: stephen engle with the latest. more to come on "daybreak: asia." this is bloomberg. ♪

shery: the fda will reportedly allow a mix and match approach to covid booster soon. the moderna ceo gave us his outlook. >> we expect this week potentially the authorization of a booster. there is a cdc meeting schedule this week to make a recommendation. i am hopeful by the end of the week, everything is wrapped up. and by next week, americans with the vaccine can get the booster. dr. fauci and his team shared data about mixing vaccines. it showed the vaccines can be mixed safely and that is very good for people who did not get the moderna vaccine but want the booster.

it can provide longer protection for american people. emily: that was my next question. do you get a moderna booster if you got pfizer or johnson & johnson first given some of these affixes the -- efficacy data? what do you want to see from u.s. regulars in terms of approval or tacit permission to mix and match doses? >> that is a big question of what will happen this week. the data last week from dr. fauci and hospitals in the u.s. that did that work is very clear, which is you can mix and match the vaccine which is not surprising. if you think about it, this is true for flu shots. i don't think anyone members what brand they had this year and last year. i think the data was very strong. the moderna vaccine provided strong protection. the highest amount of antibodies you get over time is with the

moderna vaccine. i'm hopeful the regulators will allow americans to get the booster. emily: your application for u.s. authorization has taken so long. however radar regulators -- how worried are regulators about risks? >> the application was submitted after the vaccine. by the time it was committed, there were only a few cases reported. there was data across millions of americans. the incident is very rare. the cases are mild and manageable by doctors. and they look very similar. the difference is our vaccine was not authorized by the same data. the regulators took a strong

stance to make sure the protection of the american people. i'm happy the regulators do their job very thoroughly to ensure every american will get the vaccine that is safe.

haidi: we are awaiting the latest rba minutes of their meeting from the key rating held on change as expected by all the economists. at their last meeting. we did see conversation when it comes to potential trajectory when it comes to interest rates as well as where the property market grows from here. goldman saying today that they expect the, property market prices on the property market to peak going into next year.

let's get you to sophie for a look at the markets. sophie: [talking over haidi] haidi: we do have the minutesof of the october meeting coming out now. the r.b.i. is committed to being highly supportive of monetary conditions. they left the key interest rate unchanged at .10%. they mentioned that at the meeting but now also adding that they -- facing a material decline in the september quarter gdp it is not coming as too much of a surprise to most economists expecting that, given we have seen emergency in the lockdown -- from the lockdown and sitting with some of the services sectors resuming activity. melbourne has come out of the extended lockdown this week as well. the rba reiterating that it will not be raising rates until consumer price inflation

is between the 2% to 3% target. the essential scenario for the economy is one that -- for 2024, is what they said after that meeting. when it comes to wage growth in the labor market they expected wages to pick up only gradually. we did see in the previous month, they pushed back review of the program. really giving out that more of a buffer time for the economic recovery. and the data to come in after we see the major economies of new southes and victoria coming out of lockdown. let's take a look at the markets now. sophie: rba minutes put a much a nonevent giving that the central bank affirmed it stance, given the outlook for inflation is going to be gradual and the pick up in wage growth. seeing a slight bump in the wake of those minutes on the aussie dollar, but staying in the 74

zone. they expect a rally in the aussie dollar. that is unlikely to continue until the bank of china stabilizes. on the gmn on the screen we are seeing the selloff hold with the 10-year yields back below 173. it's stalling when it comes to the aussie bond curve. expecting it to continue to underperform. shery: we are watching trading when it comes to apple suppliers as well. the company has dropped the intel chips and its biggest macbook pro overhaul in years. >> we're a year into a two year transition, our first chip designed specifically for the mac. m1 is a breakthrough transforming our most popular and affordable system, redefining what they can do with

incredible performance and extraordinary battery life. the response has been off the charts. m1 has propelled back roads over the past years, outpacing the industry for the mac having its best year ever. shery: apple will sell new airpods. let's get more from our asia tech editor. are there any implications for asian suppliers on those announcement whether it is chips or the new audio line? >> let's see how the market reacts but in terms of these products in the new announcement -- it's overly exciting. all the feedback has been very positive because the macbook pro has had its biggest overhaul for a good five years and i would say back in 2016 when the macbook pro change, headed -- it added touch screen and other additions that people did not find beneficial, especially the professionals. the new macbook pro is --

addresses so many things. it got rid of the touch bar. it brought back the ports, hdmi. the things that videographers and photographers have used for a long time and the new pro improved to the power and it's dedicated to pros in video, and all saying -- they cater to professionals. the response has been really positive. shery: from the business side of things, the vertical integration that the chip has gotten differing views but i'm wondering if it discontinued move to bring things in house, how much does that solve the supply chain and supply issues? vlad: a small correction the reviews are not in yet. that is the important thing, how the, how things pan out as apple is moving away from intel chips and it is forcing -- to redesign

the software. that being said, apple does not have to rely on intel. it already has a really strong relationship with the agency, which is a chipmaker for iphones. the m1 pro and the m1 max. the max, the new processor the apple is putting into these macbook pros are built out of that lineage and it does mean applicant can have a strong level of reliability. -- that apple could have a strong level of reliability. everyone has an including apple with the iphone 13, but is it still better to have that in-house -- as opposed to having intel? shery: our asia tech editor with the latest on apple. let's go to first word headlines. vonnie: the european union may trigger a new pool -- to member states. the so-called conditionality

mechanism could be applied against hungary -- and poland. hungary what forefront 7.2 billion euros. the order could be deployed within days. >> we try to build the most possible -- to react. to pay attention to the link between such a creating of policies and the rule of law. if we are not doing it at home like we try to do with poland, it is difficult to be credible when we are speaking to europe about the same principle. vonnie: carrie lam is in the hospital after suffering a minor right elbow fracture. officials say she fell and her government has -- on monday night. a statement from terms -- confirms lam will remain in hospital. the chief secretary john lee will remain as leader and her absence -- in her absence. colin powell, the first

african-american to become secretary of state and chairman of the joint chiefs of staff, has died from covid-19 complications. colin powell was born in harlem. in a speech to the u.n. he falsely claimed that saddam hussein had weapons of mass destruction. colin powell later acknowledge this blemished his military career. he was 84. 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: u.k. prime minister boris johnson says the city of london will prosper outside of the e.u. noting job losses and disruptions to capital flows have been lower since exit. in an exclusive interview, -- far fewer bankers have been moved out of the financial hub as predicted. >> the long-term reasons why the u.k. remains attractive --

in the short and medium-term reasons are, are all the fundamentals remain the same. so, the time zone, the language, the rule oflaw, the pools of liquidity in the city of london, the attractions of having some of the best universities in the world. this is also the moment. it is the moment because we've got a series of things coming together. the u.k. is to make a big bet on green technology -- is deciding to make a big bet on green technology. the government is setting the regulatory framework to encourage the private secretary to come in. i relate to some of the numbers. we're seeing. so, we are making a big bet on hydrogen and wind power and electric vehicles, on carbon capture. all those things. that's driving a lot of the investment. but you also see a government

that is creating the, the b edrock, as it were, for industry, for investment across the whole of the u.k. so, we're investing in huge quantities of new infrastructure, which we've long needed in this country to address our productivity gap. so, we're 6 putting about about 640 pounds into technology and into skills. and that's different, the approach we are taking. >> you have the global -- blackrock, goldman sachs, j.p. morgan, they are always coming -- they are all coming and they would say yes, they like the city of london but they are hedging their bets and putting some jobs in paris and amsterdam. behind all of it, they would say, look, we are an industry, finance is an industry that brings in 160 pounds a

year. prime minister johnson: it brings in less than a billion. >> rather than this big issue a finance. prime minister johnson: in 2008- 2009, there was literally own one politician that spoke up repeatedly for the city of london and for bankers and that was me. i know the city of london is crucial not just for our country but for the whole of europe. and for this. hemisphere that's why for the world, and that is why i think it is profoundly in the interest of our partners to ensure we do continue to see, you know, proper flow of capital and services between london and all other parts of europe. if you want to raise money around europe, if you wanted finance your merger or whatever

it is, london is still the place to come, always will be. >> to use that point, ,that exactly what the hardheaded captains of industry will say. look, you are stuck in these argumentss with france about fishing, about finance. they are the people as you well know that are blocking the city of london's ability to be able to trade to the rest of europe -- or to get a deal. is it time to fix those squabbles? p.m. johnson: i have great relationships with the french government and emmanuel macro and i will continue to ensure that the you can france has a very -- the only outcome, sharing the private -- but the u.k. and french have been [speaking french] for a long time. and, if you look at what we do

together around the world, we're very close partners, we are friends. it's vital. and it is the deep will of our populations that should remain the case, and we will continue to do great things together. is there a problem with a northern irish protocol? yes, there is, but we will fix that. it is not the end of the world. shery: u.k. prime minister boris johnson speaking exclusively to bloomberg. coming up, we we we joined by hong kong first virtue ensur -- insurer. don't miss our exclusive interview coming up next with co-ceo. this is bloomberg. ♪

shery: hong kong's first virtual insurer has raised about $23 million in a new funding round led by the japanese training house, hopes to partner with agent portfolio as part of expansion plan. joining us exclusively is the cofounder and co-ceo michael chan. thank you so much for your time today. give us a little bit of more details when it comes to your

expansion plans, because i understand you actually need those local insurance licenses in each individual country. so how do you plan to leverage 80 hospitals across asia? michael: that is a great question. i think we start by having -- our co- shareholder to also participate in the series b round. we now have the largest insurance companies in the world. and one of the largest asia health care portfolios behind us. between those two, we're looking at how we integrate the health plus insurance business model, trying to figure out how does an insurance company really work properly for health care providers? we're starting in asia, health insurance companies have sort of head an antagonistic relationship with health care providers. we're really trying to change this. we will be evaluating different markets. but right now the focus is in hong kong. hong kong has a $6.9 trillion

insurance protection cap. we still have a long way to go in the hong kong market. shery: just staying longer with those foreign markets, when do you plan to apply for those local licenses? do you also plan to hire locally? what are the plans? michael: we are actually talking to some of the different governmental regulators, starting a different markets. asia is not one market. every market has a special regulations, different attitudes towards digital insurance and readiness for insurance. we are very focused on health insurers. how can we actually deliver affordable and accessible health care and which markets have those -- haidi: where do you go in terms of the fundraising and what's the plan to deploy capital? what are the expansion plans? michael: hong kong still hasa $6.9 trillion insurance protection gap, digital

insurance is less than 0.1% of the market. between these insurers we still see a very long runway. most of the capital will be going towards growth capital hong kong, and acquisition and a lot of health care innovations. beyond that, we will look at how we expand in different markets, talking to different regulators on that. haidi: there have been reports that some virtual banks have invested and seen losses when is sent -- it comes to chinese assets. can i ask what exposure you have to the chinese markets? michael: we have a very safe investment for folio, predominantly cash. the main purpose was to find the operating cash flow. our first round of fundraising was about trying to prove whether or not a digital life insurance company or health insurance company, does our business model exists? nobody has been able to show traction in hong kong.

bowtie was the first company that was launched. shery: do you have exposure to chinese corporate bonds? you don't. let me ask a little bit about the expansion plans when it comes to the greater bay area. what do you plan to do over there, what are the opportunities you're seeing, especially in the next hong kong to the mainland? michael: we're talking closely with regulators on that, also. it is very much policy driven at the state. the health care systems are different between the two areas, as welll as the insurance systems. right now it is a lot of trying to figure out how they work and how the health insurance finances the health care. it is one of the core focus areas of the health connect system that we discussed beyond -- i just make sense if we want to encourage mobility between the two markets, making the auto and health insurance connected is one of the key objectives. haidi: michael chan, great to

have you with us. bowtie co-ceo. catch up on our interviews under interactive tv function at tv you can send us instant messages during the show. do check it out at cb go. this is bloomberg. ♪

shery: here is a quick check of the latest business flash headlines. american express will allow staff to work from never they want for at least four weeks a year. the ceo says in a memo to staff that a large majority will probably work hybrid schedules. be in the office for an average of two days a week. here -- the founder is clashing with the coo over the company's latin american fund. they want to spin off the $8 billion fund he oversees in order to build the business and boost his compensation. in a statement they denied any such discussion and they had a strong relationship with claure. haidi: we hear that fwd, the insurance group owned by richard lee, is facing scrutiny from u.s. regulars.

there are plans for the new york listing. let's get more from our reporter julia on this. what more do we know? >> so, basically fwd was expected to launch as early as this week, but it's been running into issues. the sec has been asking lots of questions, which is the latest potential launch. it's also been asking questions about the potential reach or overreach of the chinese government. we know from previous lee that firm such as swd which are not chinese which are hong kong-based have been warning about the potential of regulatory risks from china. this is a new development, given that these are not subject to chinese law, but, however, given the whole regulatory crackdown we have seen over the past few months, they have started warning about this as well. fwd faces lots of questions about this and they have not been able to get the final approval to go ahead yet. shery: and investors not so happy about chinese companies

listing in the u.s., given the uncertainty, huh? julia: yes, exactly. the flow of chinese companies to the u.s. has ground to a halt since the summer. and rbc there was a whole debacle after that. -- and there was a shoel debacle after that -- a hold of paco after that. there was a lot of scrutiny from investors. there is also a lot of pushback from the u.s. regulators. the u.s. route is closed. fwd is a pan asian ins urer. investors may demand more of a discount given regulatory concerns. shery: julia, our equity markets reporter. we are headed for the china open. sophie with what to watch. sophie: we are keeping an eye on tech stocks in china and here in hong kong as regulators

consider antitrust actions on firms like tencent, which could boost content accessibility and search -- search frameworks for baidu. and revenue potentially to citigroup. we are seeing -- shares -- outperforming their rivals so far this month. and pulling up the chart on the terminal has helped turn fortunes of hong kong stocks which were a bright spot on. monday the hang seng is up 3% this year and we have seen a return of buyers from the mainland. using the chart right here, on the terminals we have eight days of net buying, the longest streak since may of this year. haidi: let's get a check of the markets as we continue. to china. the inflation risk as well asthe headwinds coming out of china where they continued regulatory considerations going on, it is looking like a positive day across the rest of the markets.

the nikkei 225 up .2%. the kospi up half a percent. we will continue to watch the suppliers after that -- the other lunches that happened overnight as well as continued integration in house chips. the s&p when it comes to trading in sitting, up by a quarter of 1%. we had the rba minutes and we do continue to see that -- when it comes to the three year note continuing to go higher ahead of that october policy meeting minute release there. a 20 months high when it comes to the three year in australia. kiwi stocks up a quarter of 1%. we did hear from the rba that they are seeing underlying inflation more moderate than across other economies but still really driving home the point of wanting to give the economy more breathing space for making any kind of decision when it comes to the bond program or moving on rates, given we are seeing major economies, state economies

emerging from lockdown. that is just about it for "daybreak: asia" our markets can coverage continues. we will keep you -- a keen watch when it comes to those tech players given the latest headwinds out of china. stay with us. markets: china open is next. ♪

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>> 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open. we are counting down to the trading. it lumbered television exclusive, u.k. prime minister boris johnson tells us why he won't turn away from chinese investment. >> china is a gigantic part of our economic life and will be for a long time, for our lifetime.