haidi: a very good morning, welcome to "daybreak: australia." we are counting down to asia's major market opens. shery: the top stories this hour, u.s. stocks rally for a fifth day. the s&p 500 within a whisper of a new high after its best start on earnings season in two years. haidi: bitcoin surges to a record, as it gets closer to

mainstream acceptance. shery: and blaming product and chip shortage is four rolling blackouts. u.s. futures muted at the open after we saw the s&p 500 continue to gain ground. gains of more than 3.5% just this week. we also had crypto shares leading the gains, bitcoin reaching a record high. the dollar -- dollar continued its trend lower. talking about a one month low but there are expectations the federal serve will -- given the price pressures around the world. beige book characterizing inflation in the u.s. as significantly elevated. oil at the moment above $83 a barrel. a surprise drop in u.s. supplies and gas inventories also falling to the lowest since 2019. take a look at after hours

trading, it was all about tesla. managing to beat third-quarter profit projections despite the fact that we did see supply chain concerns and chip shortages as well. in the after our session were seeing a little bit of downside pressure. ibm reporting revenue that missed analyst estimates. they didn't do that well with the i.t. legacy units and were seeing downside pressure more than 4%. all eyes on what bitcoin was doing because we surpassed that $66,000 level for the first time ever. were talking about a huge rally after days of trading narrowly within the range. now we are seeing it reached that overbought level in the 14 day rsi. the new record could not have come at a better time. after a report, we've seen the rest become history. haidi: here in australia, lots

of conversation on the state of the crypto industry. is calling for a robust regulatory framework to make sure australia remains competitive. all that excitement over the bitcoin etf making its debut on the nasdaq this week. saying it needs to provide investment to facilitate market competition and encourage a situation where innovations continue. it's a balancing act that we find a lot of jurisdictions facing when it comes to cryptocurrencies. shery: and what a balancing act that is in china, when it comes to the credit markets and everything happening with ev ergrande. it was supposed to get a huge injection of cash, but that is not happening. they are now asking for shares

that were halted to start trading again, but we have another huge risk coming up because the 30 day grace period for that nonpayment they missed is coming up this weekend. haidi: and also weighing on the potential systemic risk as the nature of the evergrande challenges rise. the rba reporting one of the outliers when it comes to monetary policy trajectory, now facing building pressure -- were seeing it from wellington to washington. we heard from the treasurer last week saying he could see the case for a review when it comes to the policymaking set up at the rba as well. it follows on the report we saw earlier urging a review of the monetary policy framework. it has played down the need for any kind of new inquiry but it

seems like regardless of what happens in the next election, that review may be more likely now. let's look at how asian markets are setting up for the trading session. we're seeing steady gains going into the broader asian new zealand stocks trading up about .3%. the kiwi rising to the highest since june 11 and the aussie dollar climbing over .5%. sydney futures up .2%. the crown review report is due at the end of the week. also looking ahead to cyber trading in tokyo and korea, nikkei futures about point him percent lower. shery: weighing corporate

earnings against inflation pressures and other risks. let's bring in our wall street correspondent and are cheap north asia correspondent, stephen engle. what were some of the key takeaways from tesla's earnings? >> as you said, they did have a small miss on the revenue. it was a big beat on the profit end of things, a big beat on adjusted earnings per share. especially on the growth margin, that's the thing we're watching very closely. the margin was over 28%. that's really extraordinary in the auto industry. general motors and ford would be happy with 10%. haidi: in the meantime, the other big market story, is this another moment of incremental validation for crypto?

>> it's interesting, it's a little more than incremental, given that we're now getting new all-time highs. we had one major etf launch, trading the future of bitcoin and other products. about 30 million shares traded on wednesday alone. other crypto has risen on the back of this news. we have heard there are others that are close, there are a few more catalysts ahead. as we've seen with other forms of adoption, the question is how incremental is the move after every other etf launches. it has created more institutional launches, the conversation is a rising again on what is the level of resistance as well. is it 55, 60? or is there a sense that as the

initial euphoria wanes that some of the prices will start to moderate again. there's a lot of news and crypto , especially for etf launches. what the market is waiting for is a move that is not just futures. shery: and raising those alarm bells when it comes to the size of the crypto industry. when it comes to alarm bells, evergrande is very loud in chana, -- in china, what do we know? stephen: this is a big blow to evergrande as well as creditors, as well as banks that are shouldering the risk and other creditors as they wait for the end of the 30 day race period. the bond coupon was due last month, that 30 day grace period ends this weekend, so it is added pressure. this deal, one of its last remaining crown jewels,

evergrande property services, although shares have been suspended. the deal was going to be for 50.1%, that would've gone a long way to put a band-aid on at least the short-term liability for a company that has more than $300 billion in overall liability. the debt crisis obviously is going to continue if they're not getting that $2.6 billion in fusion from hobson development. their statement says it regrets that were not able to complete the deal. we don't know the exact reason why it fell apart. other media has reported that the provincial government failed to give it stamp of approval for that deal. nevertheless, the shares have been requested. they requested that shares resume trading today. haidi: stephen engle with the latest there on evergrande.

speaking of that fall from grace, crown giving an update ahead of the annual general meeting which happens in an hours time. saying there's a cooperative constructive approach to the regulatory investigation and facing uncertainty. they will deliver on friday the final assessment related to the flagship melbourne casino. it comes after eight weeks of public hearings that have heard everything from unpaid taxes to allegations that it failed to address money laundering risks and concerns. if they are found to be unfit to hold a consumer license it would completely disable the country's profit engine and give quite a bit of leverage to some of the

others like blackstone and star casino. su keenan has the first word headlines. su: rentable has added his voice to the chorus calling for tapering. he spoke at the milken global conference, denying the fed is behind the chorus and responding to rising inflation that he still believes is transitory. and the cleveland fed president said the u.s. central bank will not be raising interest rates anytime soon. president biden -- is picked for investor for china has taken a hard line with beijing over its actions, saying america strengthen alliances give the u.s. key advantages. at his confirmation hearing, nicholas burns said he was skeptical about china's intentions on issues such as 5g

technology. he also warned that the were should be worried about beijing's nuclear buildup. and clearing the way for millions of americans to receive covid-19 booster vaccine shots. the agency approved moderna vaccine's for those over 65 and younger people at high risk. and a booster for johnson & johnson which was a one dose vaccine, approved for those overacting. it also approved a mix-and-match approach. rio tinto's new ceo is kickstarting the companies turnaround with a plan to decarbonizing its assets over the next decade. he's targeting a 59% reduction in the operations emissions by 2030. surging iron or prices boosting first-half profits to a record.

but it has been dogged by operational setback in the fallout from destroying an aboriginal rock shelter. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haidi: still ahead, more analysis on global earnings. coming up next, we get the market outlook, will see if earnings are enough to counter the looming risk. this is bloomberg. ♪

>> what we see from the inflation front is that the situation is going to get worse, and then of course we are working on pricing to make up

for most of that and also internal efficiencies. >> it is very hard to get rid of deflation. so you have to air on one side or the other, you air on allowing a certain amount of inflation to take place. >> we are seeing signs of inflation, whether it's transitory or something more long-term. we have to begin to start the quantitative easing, the tapir that has been talked about. that will be a real challenge. shery: speaking about those concerns, surging -- commodity assets are proving to be a great diversifier for stock portfolios. achieve investment strategist of mainstay capital management, always great to have you with us. explain your rationale and if there is any specific energy play that you like?

>> it has been a significant rally for commodities this year, specifically the energy sector, but whether it is labor issues, supply chain, commodities, probably commodities are doing very well. one specific play we like is the commodity broad strategy etf which happens to be about 40% in energy. so we are getting good exposure to energy which we think continues to go higher. it is our favorite sector here for the second half of the year. also for a more direct energy play we like pxe, it is up 47% over the past two months versus just a few percent for the s&p 500. seeing commodities and natural resources make a major move this year, certainly in the second half of the year.

we think investors have to have an allocation there. shery: there is speculation that the federal reserve will lag other central banks around the world given these inflation concerns. what are your thoughts, and is there any way to play that? >> they are. if we look at what a lot of the emerging market countries have already done, they have been raising rates. europe, the u.s. developed markets behind japan -- japan has not raised rates in years or decades. the trouble the fed has, the real problem here, they are between a rock and a hard place. they are trapped in a very difficult situation. we have inflation that is measured by cpi and many would argue true inflation numbers are higher than that. but it has run at about 5% for three months and doesn't show any sign of slowing down.

we expect inflation to taper off into 2022, but so far it has been running honor and some might have expected it would be by now. certainly hotter than the fed had been expecting. at the same time, we have our gdp forecast for the u.s., if we just talk about the third quarter. a few months ago as high as 7%. the most region -- recent forecast by the atlanta fed is down 2.5%. that is dangerously close to economic contraction. so we are talking about the fed tapering and then immediately following with raising rates, when gdp growth is slowing significantly. whether the delta plus, another variant, or whether we get a cyclical slowdown after this massive economic boom we've had with the covid reopening, that's going to be a tough spot for the fed to be in. haidi: and depending on how the

inflation picture plays out, we're hearing from one analyst saying they like commodities -- is it an etf play there to balance out? >> you can play it a number of ways. you can own the stock outright. you can own conoco, occidental or hess. commodities, we think it makes sense for investors to play a broad basket because moneys across the board are doing so well. what you said about a diversifier, traditional bond funds are bonds that are doing well. our traditional bond fund, high-quality companies that are interest-rate sensitive. u.s. treasuries that are interest-rate sensitive that have negative returns year to date. that will finish this year at a record for negative returns or

bonds. commodities in this environment which are trading with stocks we think make a good diversifier in place of bonds and other traditional diversifiers for a stock portfolio. haidi: we're hearing from the tesla cfo that the company has felt headwinds when it comes to nickel and aluminum process as well. it converges to with the most contentious market topics, bitcoin and tesla. we've seen bitcoin outperforming tesla shares, but when you look at a diversifier in terms of adding some risk and grow to your portfolio, how do you feel about tesla's margin prospects and also bitcoin coming into the mainstream? >> it is amazing what elon musk

has done with spacex, with tesla, with the stock price for tesla. it has been a stellar stock to own. spacex is just incredible in the technological feats that have been accomplished. when we look at tesla based on fundamentals, though, it is hard to justify. i think most look at it as a story stock, more than just an automotive company. obviously you have to look well beyond fundamentals when you have a company in the auto sector around the world that trade somewhere between six times forward earnings to 15 times forward earnings. here is tesla's p/e ratio in the stratosphere. investors have done extremely well there, but there may be a reckoning at some point. the growth story coming back around to fundamentals.

on bitcoin, i think what happened yesterday, with the new futures based etf for bitcoin, the general acceptance of bitcoin within the financial services industry, within the commercial industry, is gaining more and more traction, heating a new high overnight here at 66,000. we think in very small doses, bitcoin can be a diversifier in a portfolio as well. shery: can it really be in small doses when you're talking about her $2.5 trillion crypto industry that continues to grow? is there a threat that all these companies that are directly or indirectly exposed to bitcoin will also be exposed to the volatility that comes with it? is this a risk for the broader market? >> it certainly a risk for those companies that have a lot of

bitcoin on their balance sheet. but if you can accept the volatility that comes along with crypto, we are talking bitcoin specifically, when i say small doses, i mean 1% or 2% of the portfolio, not 5% or 10%, because it is very volatile. there is that believe more and more that it is the new digital gold. if you think of how we use gold or precious metals in our portfolio is a diversifier, bitcoin because of its volatility, we would hold it much smaller than that. given a time horizon compared to gold, the winter is very clear. haidi: david, always great to have you with us. you can get a roundup of tesla earnings and all the top market

stories on today's edition of daybreak. we have much more ahead. this is bloomberg. ♪

haidi: taking a look at the day had for australia, the country looking to boost its crypto industry. the parliamentary committee has released recommendations calling for a depth of regulatory framework with potential in the coming months. and the state positions itself to be a leader in biotech. trial stages will focus on early-stage development. and the latest production numbers from santos and woodside. lots more ahead here in sydney.

a little upside across the asian open, not much change when it comes to japan and hong kong futures but a little boost when it comes to trading in sydney,

>> tesla has reported revenue that fell short of estimates and managed to beat third-quarter profit projections despite a semiconductor shortage in supply chain challenges. we know that tesla is not immune to the similar resourcing of supply chain issues that have afflicted so many automakers. the cfo talking about prices of nickel and aluminum in particular. when it comes to these broader earnings, what jumps out at you? you are bullish when it comes to the margin outlook. >> the september results, this

profitability piece, 28.5% automotive growth margins. that is all you need to focus in on. looking for 25% so 3.5% upside may seem a modest but most analysts have expected that decline given the tight component environment that you just discussed. the reason why this is so important, the profitability piece, is ultimately, for tesla shares to continue to move higher, they get to 2500 over the next several years but then, they continue to go higher. their margins need to continue to move higher. and i think that this quarter has a lot of negativity built into it around the supply chain and they have delivered on the profitability appeared i want to mention one other quick point for this profitability piece. that needs to be taken into context with their delivery

members. they reported their delivery numbers for the first few days of october and the deliveries were up 73% year-over-year. the top five automakers were down 23% so what you are seeing is this massive gap between not only the deliveries of tesla ev's but also their profitability relative to traditional carmakers. i mentioned that 28% growth margin number for tesla is about two times what a gross margin would be for a major automakers so they are marching forward on the fundamentals. that is the takeaway. haidi: what are the biggest challenges for the company going forward, for this next leveling up of production? gene: the biggest challenge is this component environment. at the highest level, a company

like tesla has two basic variables that they are navigating. one challenging variable is around demand. that is not a problem. they have more demand than they know what to do with. where is the challenge? there is the component supply a question and of course we know all about that. that has been challenging. the second thing is the ability to quickly get these factories up to speed and they are doing a great job with the factories in austin and berlin. that is just unprecedented. that is a challenge in the production side and if you just zoom back a little bit here, they caught a million cars this year. their long-term goal is to do 20 million cars which would be more than any other carmaker. but that biggest challenge is really around production and notably missing from my challenge view is the

competition. even though there is more competition, the market is so massive around ev's. there is this awakening going on around ev's globally and that will not be the problem. competition will be the problem. shery: the pie is big enough for everyone. you mentioned the gigafactory's. how important is increasing the efficiencies when it comes to those new berlin and austin factories, not to mention, what do you make of the rolling blackouts we see in china as well? how important is it to increase efficiencies? gene: first order of business is to get production lined up and the second is to increase efficiencies. it typically takes 1.5 years. just over one year out from shanghai and we are starting to see some meaningful improvements in production. that is a function of time.

what is unique about tesla versus other car companies is they are starting these factories from scratch. ories that were built 50s years ago that they are retrofitting and that makes it harder for traditional autos to scale their margins. that is the biggest opportunity for an eeev carmaker is china. they get it when it comes to electrification. the x factor is this $25,000 model two. they did mention on the earnings call, it sounds like it's probably going to be 2023 or 2024 so we are going to have to wait a few years to that. shery: how important is it that they are shifting to lithium-ion batteries globally, not only in china? gene: it's important.

when many of the components are widely available, some of the components are less available. i would maybe think about it from the component side that there is an architecture that tesla is pushing. they are saying it's going to start in the beginning of next year. what it means -- there's a lot of technicals and specifics around that. the components that go into it, as you mentioned. what is most important is these batteries have a 2x factor in terms of the range that a typical battery has. that is a competitive advantage for tesla. batteries are a big deal and tesla is saying a lot to advance their lead. haidi: when it comes to how much the stock has surged, we are seeing technical flashes of red, right? do you subscribe to technicals when it comes to how the stock is trading? gene: i am a fundamental

analyst, bottoms up. as an investor, that is how i think about the world. i'm going to set aside the technicals and just mention that my fundamental work on transformative tech historically 's charts have been broken. these radical moves and continue to move higher. we have a market cap approaching 870 billion. ford has a six to $5 billion market cap. this is eestnet -- $65 billion market cap. this is an estimate. they will go from $70 billion in revenue to $400 billion in revenue. if they do, what they talked about at the top was improved margins. this can have an applelike revenue multiple. i put that together. i think that the fundamental picture for me is more important than the technical picture. shery: always great having your insights, cofounder of loup

ventures, gene munster. you can turn to your bloomberg for more on tesla's earnings. go to tliv to get commentary and analysis from bloomberg's expert editors. let's get to the first word news with su keenan. su: we start with china evergrande. -- resume trading in hong kong on thursday after scrapping plans to sell its property management arm. shares have been halted since october 4. the proposal to sell a majority in property services to hansson development would have given the developer a major cash infusion as it faces impending debt payments. it also asks that its shares resume trading. to bitcoin now, it rallied to a record, topping 66,000 dollars for the first time as optimism surges for greater mainstream acceptance. that follows the successful launch of the first exchange traded funds for investors in the u.s.

it spent recent days hovering at a narrow range but added more than $1000 in a minute just after the wednesday open in the u.s. to singapore now, which will keep tight virus restrictions for about another month as authorities warned that a record wave of infection threatens to overwhelm its health care system. the measures omitting outdoor social gatherings to two people and making work from home the default will continue until november 21. the government will extend aid amounting to find a $76 million to help businesses and people. finally, apple will force unvaccinated corporate employees to test for covid-19 each time they want to enter an office. it tightens the companies virus protocols while stopping short of a vaccine mandate. staff will be required to take rapid tests once per week. as per apple's retail store, unvaccinated workers will need

to test twice a week. vaccinated workers, once a week. 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 su keenan. this is bloomberg. haidi: coming up next, the u.s. fda authorizes nixing and maxing -- mixing and matching vaccines. we have the details. this is bloomberg. ♪

>> -- airline shares falling after the company posted a lackluster outlook. the ceo sees what he calls an inflection point coming in january and he told david westin that the airline plans to boost international capacity by 10% next year. >> in the fourth quarter, we were dramatically impacted by the delta variant. while things bottomed out, we are clearly on the road to recovery now. a lot of the fourth quarter was impacted and business offices that were going to open in september have been pushed back to january so really, you know, regardless of what the fourth quarter is, the story for long-term investors is about 2022 and beyond and on that front, we are really optimistic. all the signs are positive and point to a good direction for 2022 both on the cost front but

also on the demand in revenue front as we look to the future. david: how much visibility do you have in the fourth quarter and going to 2022 in terms of bookings? i will break it down more specifically. leisure as opposed to business? david: we already see -- scott: we already see very strong leisure demand in the united states, and it has roared back to record levels. the holidays are going to be really strong. normally in the fourth quarter, there is a lot of business traffic. it is much more business traffic dependent outside of the holidays. business traffic rebounded to the levels it was pre-delta variant. everything we hear and see from our corporate customers and those people that are traveling is that we should expect more people in offices and a big inflection point in business manned come january. we have not seen the data yet because business bookings typically happen a lot closer pit all the anecdotes we hear and see would indicate that

there's going to be an inflection point post holidays. it will start to come back in a much more material way. david: you mentioned to the extent to which your fourth quarter has delta variant. is it going to look different? i know you have been talking about a premium economy. is it possible that for the long run, we are going to change reconfigurations because we might not want to sit quite as close to one another? scott: certainly united, the configurations are changing. reconfiguring all of our airplanes. significant increase in the number of premium seats on airplanes but what will matter more is the change in the customer experience. we have seen a huge improvement in our net promoter scores as he went to the pandemic. i think what customers are going to notice more is the change in not just the products but the customer experience and how they feel. how our employees treat them. there is an immense amount of

pride at united airlines for what we did. deserved pride for those employees and the products -- they are part of it. that is leading to much better customer service. david: you mentioned 2022. my understanding is we are going to be bringing more capacity online internationally but not so much to mystically. if that is correct, why is that? won't there be a big uptick in domestic travel as well? scott: we saw a pretty big increase in domestic travel. it outperformed internationally. the international market is going to be stronger, particularly to europe, middle east, and africa, places we added during the pandemic and the supply demand balance is different. that means that the supply and demand balance is much more imbalanced internationally so we expect next summer to be the strongest by a wide margin summer that we have had across the atlantic and if you look

forward, it looks different now that the borders are down and consumers, customers, is this travelers, everyone is allowed back to europe. shery: united airlines ceo scott kirby speaking with david westin. the fda allowing missing and matching vaccines for booster shots has also authorized moderna and johnson & johnson's jabs for a third shot. johnson & johnson saying they have sufficient supply. an fda official saying they will be in limbo in adjusting the age requirement when it comes to those boosters that there is evidence to suggest that lowering the booster age may make sense. let's discuss all of this with bloomberg managing editor for global business, emma o'brien. the fda taking the unusual step of endorsing vaccine mixing for boosters. what are they saying? emma: you have the u.s. drug

authority approving the moderna vaccine, booster for americans aged 65 and over, along with those over 18 at higher risk. they said any adult who received the johnson & johnson one-shot vaccine can get a booster two months after receiving their first dose which is pretty aggressive. alongside that, as you noted, they said that any of the three covid vaccines authorized in the u.s., moderna, pfizer, biontech shot, and johnson & johnson, could be given as a booster. this shows the u.s. is really doubling down the booster program, given the uptick in cases and deaths we have seen in the past month or so. most of those have been in unvaccinated people with the u.s. hitting a bit of a hesitancy wall since its initial rollout but there has been breakthrough cases and this is what this is targeting, especially in people who got their vaccinations early. haidi: in the meantime, we are hearing that apple has become the latest big u.s. company to up the ante on

vaccinations and testing their workers. emma: yes, apple has been quite cautious. on the sort of vaccination mandate from. at least compared to some of the other tech companies, the airlines, some of the banks in the u.s. it stopped short of issuing vaccine mandates for its employees. it did say it will compel non-inoculated workers at the corporate offices to test for covid every single time they enter an office and this will apply to people who don't want to divulge vaccine status to the company as well. this comes as the u.s. government really lasers and on its december 8 target for federal employees and contractors to the government to be fully vaccinated against covid. of course, apple sells a lot of products to the u.s. government so they will potentially be affected by this mandate. the u.s. has also been pushing

businesses with 100 or more employees to require vaccines or else really aggressively test unvaccinated staff. haidi: emma o'brien when it comes to the latest on the vaccination front as we hear that the fda is seeing evidence to suggest lowering the booster age to potentially as young as 14. we do have lots more ahead on daybreak. this is bloomberg. ♪

haidi: new zealand has become the second country to secure a post-brexit free-trade agreement with the u.k. in a deal that aims to eliminate all tariffs on exports. paul allen has more so what do we know about the deal and what both sides are getting out of it? paul: it will be a stage deal. following australia back in june. it's going to happen in two parts. some tariffs will be removed immediately on products such as wine, honey, some dairy products, all industrial products, worth about 37 million new zealand dollars but over the following 15 years, the number of tariffs will be gradually phased out including on beef, other agricultural exports including butter and cheese as well and once those measures are

phased in, the boost to new zealand's economy is expected to be 970 million u.s. dollars so volume is expected to increase as well. haidi: paul allen with the latest on that trade deal. let's get you a quick check of the latest business flash headlines. a chinese property firm fell after it canceled meetings with some investors. according to sources, the company cited conflicts for canceling meetings planned during a conference organized by bank of america. it faces a coupon payment on may 20 $22 note. in 2015, it became the first chinese developer to default on dollar bonds. cbs and standard chartered are planning bids. offers for india are due next week. it is trying to refocus its business around more profitable units and hubs including hong kong and singapore, planning to

hire 2300 new asia staff for wealth management by 2025. china mobile's profits surged in the latest quarter as it continued to lead the market in adding 5g customers. a reported net income of $4 billion is out 9% from a year earlier. china mobile has 300 million 5g users, attracting more subscribers than its two biggest rivals combined in the first eight months. shery: he says he is open to crypto and that investors have to separate fact from opinion. the former chairman and ceo of goldman sachs spoke exclusively to erik schatzker on bloomberg front row. >> a lot of bright people think it has a bright future. i'm telling you, i have a whole foot and four toes into the old world and it's not something

that i gravitate to and i can think of a lot of reasons why it will not work. but i remember when they were auctioning off -- auctioning off spectrum to cell phones. all you do is pull up -- driving your car, pull up to a phone booth. who would carry that clunky thing? the point is that there are a lot of things in this world that have worked out awfully well. erik: for somebody who used to run a bank, you sound pretty constructive to it. lloyd: i am open. i ran a bank. i ran risks. you have to separate fact from opinion. nobody knows the future. i mean, there's all sorts of things. there's a lot of things that move in different directions that i could not and would not have anticipated and no one else would have either so to just come out and say market that is already in excess of $2

trillion, that faces all these regulatory headwinds, the a lot of people don't like and would enjoy seeing crushed, somehow manage, you know, it does not look like it is flourishing, but no day does it look like it is dying. erik: do you own any? lloyd: -- any crypto? lloyd: no. shery: lloyd blankfein speaking exclusively on bloomberg's front row. staying on bitcoin, paul tutor says he is using crypto as a hedge against inflation. in an interview on cnbc, he says there is a place for digital assets in his portfolio and that it is clearly winning the race against gold at the moment. inflation fears have clobbered short and intermediate term treasury notes and flattened the yield curve. bank of america saying that could spell trouble for u.s. corporate bonds. they note that this will give less compensation for buying longer-term bonds like

high-grade company debt and it will increase hedging costs for foreign investors and hurt demand, haidi. haidi: let's take a look at some of the stocks we are watching when it comes to the start of trading and sydney. top of mind ahead of that report due from the former justice. that follows eight weeks of those hearings. we did see of course the comments ahead of the annual general meeting set to start shortly, saying it was down 9% in july and they spoke about the impact of covid-19 restrictions and facing uncertainty from ongoing regulatory investigations as well as the pandemic downside. crown resorts traded a bit higher, .6% but all eyes are on the key report over its operational future. we are watching woodside. we have the production out from woodside a little bit earlier, pretty much bang on expectations hit a little bit of a lift for a couple of those names, also watching the big players.

given that we continue to monitor some of these regulatory curbs and potential action out of china on coal prices and usage amidst this energy crisis to that is it for "daybreak australia." "daybreak asia" and the start of trade for sydney is next. ♪

haidi: a very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: i'm shery ahn in new york or welcome to "daybreak asia. -- i am shery ahn in new york. welcome to "daybreak asia." tesla revealing plans for a shift in battery technology. bitcoin moving closer to mainstream acceptance. evergrande shares may resume