paul: i'm paul allen in sydney. >> investors way inflation worries against improving sentiment toward chinese companies. alibaba is a part of that.

paul: the market here in australia has just opened. we did have futures indicating a positive start. we are already high by almost two tens of 1%. we have a staggered opening here in australia. the materials sector led the way yesterday. new zealand is a bit weaker after the first couple of hours of trade off by one half of 1%. a few things to watch out in japan today. we had a little news in the last

few minutes, the central bank of peru increasing its rate by 2%. the inflation story not nearly confined to the united states. peru lifting its benchmark rate to curb the fastest inflation it has seen since 2009. we have had plenty of commentary around inflation. wells fargo sees a getting worse or rising before it eases. ing sees it as a tipping point. can they continue to stimulate the economy when the economy is growing and inflation is rising and there's no apparent loss of momentum? these are moving from the business page to the front page as well. yvonne: the e.m. central banks are going ahead. this changes the dynamics of things and how central-bank

policy has been in the past. you take a look at volatility, the fed is gushing on inflation whether it's transitory or not, this is a roller coaster we have seen in global bond markets in the last week or so has been not. when it looks at trading conditions and treasuries, we have the treasury liquidity index here. that was the roughest sense march of 2020. these are the implied strings -- swings for u.s. bonds. the kiwi may be reducing liquidity what it is also fueling liquidity -- volatility. paul: the other news we have been hearing out of china, xi jinping giving a historical unusual resolution cementing his power indefinitely. he is going to be there for a

very long time. he has managed to see all four of his rivals. it will be interesting to see how policy evolves under his presidency which is now showing no signs of coming to an end. talk about this historic resolution in more detail. all obstacles are now gone for xi jinping to get a third term and beyond. what do the next few years look like and how long is his leadership going to last? >> xi jinping has put his stamp on the nation and of the economy. he put his grip if you will on a number of different sectors. had a confluence of different crackdowns and regulatory actions against big tech, insurance, fintech, the cloud, property, macau, hong kong. you have had a number of bold

strong moves from strong man. over the last nine years, he has whittled away the opposition. when i was there as a china correspondent from 2008 through 2015, i saw the transition from the rival factions. there was so much politics. it put u.s. politics to shame. we had rival factions. the beijing click who favored xi jinping. it was fierce backroom brawling and politics. you don't have as much of that anymore. xi jinping with his vast anticorruption campaign did away with a lot of rivals. now he sits for a third term and

possibly beyond. yvonne: what does this mean for policy? is he going to push harder on taiwan? >> if he has the power, what is he going to do with it? now, his doctrine, his thought has been indoctrinated into the party. in the central committee which approved this, they called on the country to unite around the party with president xi at the court. it says that he is central to meeting the goal that the party has set out through 2049. he is 68 years old. other leaders lived to be in their 80's or 90's.

he could rule until the day he dies. he will have lots of time presumably to push forward with common prosperity. in this doctrine, they also mentioned moving hong kong from k onto governance. they talked about science and technology alluding to being less reliant on technology from the united states as those frictions go forward. this guy has the world second-biggest economy. one of the most powerful militaries in the world. it's not like previous leaders. it is very different now. yvonne: we are counting down to the talk between xi jinping and present biden next week. >> china may oppose efforts at

the cop26 conference to save on coal worldwide. china is struggling to meet its power needs and is ramping up coal output to record levels. beijing is resisting a motion governments to beef up their initial plans by the end of next year. a hong kong judge has jailed a man for six years for chanting a band slogan. -- a banned slogan. the prison term is among the longest. he says he does not regret his actions. the u.s. is warning russia made plans to invade ukraine. tensions are flaring. sources tell us washington is monitoring a buildup of forces

on the ukrainian border. russia accuses the u.s. of provocation. white house officials do not believe that jay powell's sale of shares in an index fund disqualifies him from serving a second term. our sources say some within the administration are still concerned about the trade. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. yvonne: still ahead, a look at how censorship is affecting china's #metoo movement. plus, and investors says the fed is closer to the long-term objective than the headlines

suggest. this is bloomberg. ♪

paul: our next guest says the question of whether inflation has peaked -- she says the u.s. companies can whether this. in this environment of rising inflation pressures, are there any sectors that you are staying well away from? >> we have remained underweight some of the more defensive sectors when you think about utilities and staples and we have been fairly bullish about the prospect of the corporate recovery, the economic recovery. we have been underweight.

we have more of a barbell approach leading into technology and also littering in cyclicals such as industrials. paul: when you consider the current environment, energy costs extremely high, we did see a strong quarter of earnings. how does the outlook look once these base effects were off? >> one of the things that we were encouraged about is the tone that corporate management terms -- teams used on the calls. earnings exceeded expectations again, but what we were really paying attention to where the comments around margins. we have close to record profit margins right now are u.s. large corporations. we also came into the quarter flush with cash. we heard them talking about pricing power.

many of these companies have the ability to be flexible enough there manufacturing. obviously, we would like to see this time move a little more quickly in terms of these inflation pressures, but right now we think these large corporations are navigating very well. yvonne: i wonder if we continue to get these hot prints for another few quarters, what is going to mean for margins and is there going to be a headwind for earnings? >> i think it's a very good point. we do know that earnings in 2022 will not repeat 2021 in terms of pace of growth. think that's already priced into the market. profit margins, there is a lot of room. we're close to five-year highs. i do think you have some potential for margin compression. you have so much cash on balance

sheet, so much pricing power, we are optimistic about growth in general particularly when you look at the backdrop of the u.s. economy in terms of continued growth. the fed is still in the mix and the consumer is strong. there are a lot of positives we think even against the backdrop of worries against inflation. yvonne: i wonder how you position around that inflation theme. some say value stocks, gold, crypto, or do you have to get ahead of it and start to look at the other side of this trade when the supply-chain bottlenecks start to ease, i should start looking for the cpi and positioning around it to start fading. there are you in that debate right now? >> it is a hot topic. one of the things we want to continue to watch, who decides what inflation is high? the fed is the body that determines that. one of the factors they look at

is there analysis they do internally that is still sitting down at the last print at 2.3% which is very modest and keeping with their long-term expectations. they will probably have more data i the town the next ohm -- more data by the next fomc meeting. at this juncture, we haven't felt a need to change. paul: you mentioned the barbell strategy. that would include some exposure to bond. if we look at this chart on the bloomberg terminal, treasuries are a treacherous place to be right now. where do you see yields hitting now? >> we are not looking for any meaningful moves at this juncture in the 10 year over the year term. -- near-term. in our longer strategies, we are

using fixed income solely for ballast against downside volatility in the strategies that you have fixed income in the mix. we have been leaning into equities sometime because we still believe particularly with yields expected to go up at some point that equities are the best place for long-term total return. paul: thank you so much for joining us. can get around up of the stories you need to know in today's edition of daybreak. this is also available on your mobile app and you can customize your settings so you're only getting news on the industries and assets you care about. this is bloomberg. ♪

paul: india is getting an endorsement from softbank. the ceo spoke to us at the bloomberg india economic forum. >> if we find the right opportunity and the right by ua should. [indiscernible] the quantum of capital we are able to invest today is not very high. they not raising as much money. each investment is $200 million

or $300 million. unlike two or three years ago when we could apply in all europe. the ticket size has come down dramatically. to invest, it will be like investing in 15 companies $200 million each. we have a local office which is working hard and building a relationship with young entrepreneurs. building relationships years before they need capital. then advising them. when they are ready to raise capital, we are there to provide the capital. there are two forms of capital. it's not just investing in -- but also following on.

you follow one over time. a lot of investments we have done over the past three years, we have been putting new money into them as if there is new capital. >> you just said you are looking to invest again in flip cards. was it a mistake? aching and exit in 2018 and what was the thinking then and what is the thinking now? >> it was not a mistake. we didn't know how the country would look. we followed the progress and we got convinced that it was going

to be one of the two major players. it is not a mistake, it is just that we didn't know how the majority would look over the next couple of years. paul: that was a softbank advisor. >> we are counting down to the start of trade in tokyo. where watching out for prices on tap. the central bank will hold the annual monetary policy workshop at 2 p.m. local time to explain the policies and exchange views on major economic issues with more.

third quarter results are rolling in. in japan, we are watching rakitin -- rakuten way above analyst estimates. we are watching the likes of bridgestone after third-quarter operating profit came in at $843 million. we have lots on tap when it comes to earnings. paul: let's stick with japan. third-quarter gdp data expected to show a fifth contraction in two years. the prime minister puts the finishing touches on a stimulus plan intended to boost the recovery. what can we expect from the print coming up later on? >> third-quarter gdp is it looking to great for gdp -- for

japan. it is largely a result of a search in covid cases. there is also a slowdown in trade thanks to supply chain constraints. pre-pandemic, this was supposed to be a crowning glory quarter in japan. yvonne: what is the data going to mean for the prime minister and his stimulus package? >> it probably means more excuse to spend to shore up the economy. he has already confirmed that he will have handouts to children. economist expect a package. they will need that spending if

japan is going to catch up with other economies. we will have to see the details of the package when it comes out later next week. yvonne: thank you. let's do a quick check of business flash headlines. alibaba singles' day posting record sales. the strong performance could ease concerns among investors grappling with a slump and alibaba shares this year. it was hit with an antitrust fine and reported a first miss in years. reuters say a reintroduction could happen by the end of the

year as regulators wrap up their cybersecurity investigation and finalize penalties for didi. the ride-hailer grab saw a diminished. than earlier. the company is set to go public in the u.s. through one of the largest spacs ever. singapore airlines says its balance sheet improved last quarter. the carrier posted $316 million loss compared with $1.7 billion per year earlier. singapore now allows visitors from a dozen countries to enter without quarantine. plenty more to come as we count down to the open in japan and south korea. the dollar is a little bit

stabilized here. we will see how the bond markets are in japan. the china opening could be interesting as well as we see that tech rebounds overnight on singles' day. plenty more to moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving.

>> xi jinping has won a mandate to potentially rule for life as a political meeting wraps up. he is joining only to others. --two others. a chinese developer has reportedly told investors it may

miss interest payment deadlines. the company had a coupon due thursday and another one on friday. both have 30 day grace periods. it reports that it is still sorting through the matter and nothing is set in stone yet. mexico central bank has raised rates for a fourth consecutive meeting. policymakers are sticking to a steady adjustment pace even as inflation accelerates faster than expected. peru's central bank tightened policy for a fourth month after inflation accelerated. ray dalio is warning of the effects of inflation on real wealth. in a post, he said some people make the mistake of thinking they are getting richer. they don't see their buying

power is being eroded. he adds that the ones most hurt are the ones who have their money in cash. he has advised there are better assets to hold. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. yvonne: a wave of covid-19 infections is beginning to take hold in some parts of the u.s. even in places with high vaccination rates. we asked an epidemiologist and professor about the situation. >> we really need to rapidly increase local capacity to manufacture. the idea that this should be a first world product that we are distributing really is problematic. the other challenge is that the pfizer vaccine and the mrna vaccines require an ultra cold

technology. that has been a limiting factor in other countries. the j&j vaccine is easier to use. astrazeneca is also easier to use. it is not in the united states, but in many countries it is the most commonly used vaccine. there are two new vaccines in the works as well. >> we are seeing the number of cases and hospitalizations plateau in the u.s., rising in germany, and in israel, there have been wargames to figure out how they can counter a more deadly strain of covid. should we be doing that also? >> we need to be doing way more

immunization. we are still under 60% of the u.s. population. as long as we are at that relatively low threshold, that means about 40% of the u.s. population is not immunized. that's why we are seeing some any cases and sony deaths. -- so many deaths. we need to now address the vaccine hesitancy and the folks who are still unwilling. that's a big reason why president biden is pushing the mandates. they are constitutional, at least by the 1905 decision of the supreme court in the case of smallpox immunization. >> the mandates are covering certain companies with many employees. what about for children? >> everyone agrees first of all that the vaccines really do look safe and highly effective in kids. the vaccine rollout in kids is going quite well.

there's high demand out there. it is probably too early to mandate and were member that the pediatric scenes are still being used under emergency use authorization. it is likely there will be mandates until those vaccines are fully approved for kids. >> i want to ask if you have gotten vaccinated. does that mean that you cannot get very sick? how protected are you after six months or nine months without booster? >> first of all, it's important to remember that these vaccines were never designed to totally prevent infection. you can still acquire covid. what they work so well against is serious disease, hospitalization, and death. they dramatically reduce the odds of that. there are still people post immunization who have gotten sick with covid.

these breakthrough infections. some of that is underlying conditions. you saw colin powell who was fully immunized, died of covid, but he was on chemotherapy and he was immunocompromised. those folks are still vulnerable. what we have to look at is the comparison between people who are not immunized at all and those who are. that is who is filling up the hospitals still and adding up to over 1000 american deaths per day. closer to 1300. we are not out of it yet, and we need to do better immunization. we are still in the basic race between the virus and the vaccine. paul: the johns hopkins bloomberg school of public health is supported by michael r. bloomberg, founder of bloomberg lp and bloomberg philanthropies. we are tracking the fallout of

the global supply crunch. >> let's start with the top supply chain stories of the day. the world's biggest supplier is finding that labor shortages are limiting its production and raising costs in developed nations. though the issue impacts operations in europe, canada, and australia, the situation is more acute in the u.s. which is seeing labor shortages across the logistics chain. the pacific maritime association which negotiates labor agreements the largest ports in the u.s. is warning that the federal vaccine mandate will worsen the supply chain crisis. the rule is set to take place in january and the organization says as many as 40% of the workers are not vaccinated. the congestion in ocean shipping lines has resulted in a booming demand for air cargo which

bypasses port bottlenecks. they will be chasing sales when leasing companies and carriers gather for the dubai air show on sunday. there is a good reason for the air cargo companies to buy up airplanes. this chart shows cost of shipping goods via air rising among the most common routes. bloomberg terminal users can learn more about those stories in our newsletter. paul: turning to commodities. iron ore sparked. let's get more from our strategist. iron ore futures recovering still above $100 per ton. where do we see the price settling? >> the recovery may be a bit over doing it.

if you look at the performance of iron ore, especially the one listed in singapore, they are sitting below $100. a few months ago, it was around $230. it is an incredible decline based on solid reasons a lot of them to do with china. currently, the holdings in ports are still going up. my colleague knows a lot more about this than i do and he is not very optimistic that the iron ore prices will rally too much in the future. he is also highly speculative. there are people who come in just to do momentum trades and you can imagine the market is at short position. you would expect there is going to be optimism about chinese equities and you would expect iron ore prices to rebound a bit. that probably doesn't tell us much about where they are going

over the next few months. the fundamentals will be the key driver for that. now, the fundamentals are suggesting that there isn't sufficient demand. there is a bit too much supply. for it to make big rally is to optimistic. yvonne: does that play out throughout the asset classes in china? you look at tech and we had a blowout singles' day. tech stocks are bouncing back in the u.s.. then you have this plenum with xi jinping solidifying his power and talking more about common prosperity. even in the property market, these could be easing. do you think chinese markets for looking more positive? >> i think people will take some heart from the fact that -- from the authorities that they have

gone far enough in the property markets. many changes that allow property companies to issue more bonds, all of those will certainly be positive overall for the chinese market. don't forget that a lot of the issues related to the tech sector in particular have been because there have been sudden clamp downs without too much explanation coming out of the authorities and china. if xi jinping is getting even more power and people will be more skeptical to say where is the direction of this policy. it's so hard to read. that's what has been upsetting investors, that there's no clarity on where the next clamp down they come from. you may see some rebound into the short-term, but the medium-term picture from china is not getting that much clearer. >> i was talking to a previous

guest about bond markets. it will be interesting on friday when they reopened in the u.s. on how they will digest the inflation trend that we got a few days ago. is it more about real yields, how low can they go with this point? >> that's a question for the central bankers. until the central bankers show a stronger commitment to getting in front of the inflation trend, then the bond market will do the work for. the fed is about to start tapering, but there will be a long cap until it raises interest rates. the bond market has decided that is out of whack to what they see in the inflation tapers so they are pushing bonds lower. they are taking the job of the central bank on themselves. you have this split between what the central banks are telling

you and what the data is telling you. bond traders continue to push in the same direction. the curve is getting flatter. the five-year futures are very negative. the people with short positions are increasing, they are not decreasing. for now, you have almost two clashes in central banks versus the markets. the markets are convinced they are right that inflation is going to stay high and until the central banks do something, they are going to continue to push bonds lower. >> more on this story and all the day's trading on the bloomberg. you can find out what's affecting your investments right

now. this is bloomberg. ♪

>> china has censored any mentions of tennis players affair.

it says the discipline watchdog often cites affairs when charging officials with corruption. still it treats things like the #metoo movement with suspicion. can the #metoo movement in china survive under heavy censorship? >> it survived for four years. the #metoo movement and china started in 2018 then sparked a lot of different cases than we have the recent cases in the political theater. accusing this high level lytic official of -- political official of such a harassment. those factors contribute to the #metoo movement because it is

creating a harmful environment in china. we have a lot of activists and organizations who were shut down before me to and social media was under strict control and censorship. it was a decentralized movement created by the survivors who spoke up and told people about their stories and also a lot of supporters and volunteers contribute to help the survivors. also it was posted on social media. yvonne: some of these high-profile cases, that was the woman who was putting allegations against the tv anchor, that case ruled against

her. also with the alibaba scandal, prosecutors charges that were brought by the victim. given some of these high-profile cases suffering bull blocks, -- blowback, how difficult is the environment for women to speak up? >> you are right. for all those cases, there were also other cases that the survivors who spoke up faced defamation charges against them. it is encouraged more women to talk about it, but it also exposes them to not have enough support for them. we are also seeing some positive changes toward this. the supreme court has added sexual harassment is one of the

courses to file a lawsuit and also recently established sexual harassment was added into the code. we will see some progress. yvonne: what are you expecting in this movement for it to succeed? >> a lot. we have a stronger society and more transparent governance. at least i think the most important thing is people don't get punished because they tell their stories. paul: what future changes would you like to see and realistically, what are the chances of these changes happening? >> i think changes are still happening. i want to say a lot.

i want to see that we have a more transparent government and for your media. -- freer media. if the women who stood up and speak about their own experience get harassed by the police, it's a lot of obstacles for the changes. it's really important to protect those who just want to defend their own rights. paul: we have been talking a lot this morning about xi jinping's historical declaration cementing the common prosperity goals. to what degree does the common prosperity extended to women and minorities in china? >> i think common prosperity should of course include women. because they are half of the population and also they are crucial stakeholders.

it will happen automatically. a lot of the researchers have shown that economic development and women's development, it won't automatically bring the -- of women. if we don't take women's experiences into account and take gender perspective into all those agendas wherever it is, the gender gap in development -- in the future. it is important to take women's experience into the account and also there is tension between women and the state. we have issues in china and we have a three child policy now. a lot of women really don't want

to give birth to children, there's a lot of other considerations. how we can protect women's rights and their health and welfare and at the same time, to develop the economy or whatever it is. to take women's consideration into account is really important. paul: thank you for joining us. you can watch us live and see our past interviews on our interactive tv function. you can also dive into any of the securities or lumbar functions we talk about and you can become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. this is bloomberg. ♪

>> softbank invested $3 billion in india this year. the ceo told bloomberg that fintech is the biggest opportunity in the country. india has been a bright spot for softbank which has been an early investor.

>> we would invest another $5 billion to $10 billion in 2022 if we found the right opportunity. >> a website reveals license applications in progress now less than half of the 170 applied last year. previous data shows two were rejected and three were approved. checking in before the japanese open. here's what we're looking at when it comes to futures. there are looking positive. new zealand is the laggard. nikkei futures are one third of 1%. we have over 150 companies set to report earnings in japan today. seoul korea futures are having a pretty good friday.

paul: let's leave the planet briefly. spacex's crew is just minutes from docking with the international space station. taking a 22 hour journey for the crew to get there. four astronauts on board. also the european space agency representative. just waiting to dock with the iss. the hatch is not yet open, but i understand we are moments away. they will be rendezvous in with the crew already on the space station. we will keep an eye on that. we will get to the pictures when the hatch is opened and those two teams of astronauts are united. the market opens in korea and tokyo.

that's coming up next. this is bloomberg. ♪

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yvonne: welcome to daybreak: asia from the asia headquarters in hong kong, i am yvonne man n. paul: i am paul allen in sydney. asian stocks set to rise as investors worry about improving sentiment toward chinese companies. alibaba was below today, didi

preparing to launch -- relaunch its chinese apps. we get to talk about supply chains with kerry mok yvonne: we will look at the market opens in tokyo. japan having a decent start to the session, up about half -- .5% on the nikkei. the dollar and yen story helping things given the strength of the dollar. that is boosting equity markets and 10 year yields were pretty much flat, 10 year -- 10 -- seven basis points. let's watch how korea is playing out as we wrap up this week. there's been a lot of earnings in japan, more than one hundred 50 companies. we are seeing earnings in seoul as well. the korean one is light

weakening -- the korean won slight weakening. paul: for the second day in the row, the materials sector is leading the way. the big minors performing well -- miners performing well, or to skew metal, bhp group also in higher -- fortescue metal, bhp group. the aussie dollar continues to slip below $.73 u.s. and new zealand also in negative territory. off by almost .23% -- yvonne: what's look at the treasury as they open in japan. the yield pickups after bond markets were closed for veterans day.

inflation concerns are in focus again in u.s. 10 year yields. up three basis points, still below the 1.6 handle. we have seen movement in the short end of the curve. the two year at 53 basis points, 1.25 for the five-year. it is felt in yields, could bring the dollar stronger. we could see a repeat of what we saw after the post u.s. cpi report. let's bring our questions to our guest. thank you for joining us. it seems like the u.s. cpi chopped the market midweek another we have a hiatus on on markets and the reopening, how are you viewing the investment landscape? can you stay fully invested? >> the cpi was a setback for the global scenario. we were thinking they will use and put a downward pressure on

inflation, around the end of the third quarter. but we will be delayed. we still believe the main story for 2020 to his inflation fears. they have gone from high levels to a manageable 3% inflation fear by the end of 2022. that should be comforting to investors, but political -- they view -- we still view the inflation is transitory and we notice president biden posh vs inflation rhetoric. it is time for investors to be more selective. we believe the market expectation or u.s. equity might be optimistic, especially for the margin equation. they will be challenged next year.

higher cost issues. we think yes, the portfolios, the risk assets in particular can still be fully vested, but the focus i think should be selectivity across markets and opportunities outside of the u.s.. yvonne: and where are those opportunities outside the rest? --outside the u.s.? homin: equity markets are in the best position for the current combination. it is a market that tends to benefit when there is a strength in the dollar. because the monetary policy framework tends to amplify the positive boost for domestic liquidity when inflation rates start to rise outside the country. on top of that, as we know at the end of our quarter, there was another mandate from the

government that will likely keep that framework intact. the fiscal policy will ice -- likely improve and contrary to higher vaccinations, there -- the country is in a better place to reopen because of higher vaccinations. we are constructive on our position. paul: so you like japanese equities, what about chinese equities? we were just seeing good sales numbers for alibaba after singles' day. is the regulatory environment starting to look more certain? homin: our way of thinking about this topic is that it is unlikely we will get another round of huge trucks we saw over the summer period. we have to remember that most of the key internet platforms have

been investigated and fined, reprimanded by the antitrust regulatory agencies and the security. it is difficult to find another new company with us could be considered and it seems that the companies that are a compliance, the framework is becoming clearer and the endgame for the new initiatives on the regulatory fund are clear to everyone at this point. the overseas listed companies will face greater scrutiny and maybe they will migrate back to hong kong. we would characterize the current situation where the risks from the investor perspective are more symmetric around these names. the valuations have gotten cheaper.

there is opportunity in this space. paul: one of the names that has taken a beating is evergrande and some of the chinese real estate firms as well but evergrande has avoided defaults. china is looking at easing financing roles. is the worst over for chinese property or is there more to come? homin: that is the most supported question for the credit market. we are looking at a helpful turn in policy from beijing. we will get clearer details moving forward and maybe data, but it seems financing instructions for onshore developers, property developers are beginning to ease. you can accelerate the industry consolidation and reduce the

financial stress for a lot of the names with a lot of product -- projects. this is moving in the right direction. it is something we have been waiting for around the week. we think they will be supported and the evergrande situation and maybe other honorable names that are smaller in scale, they will represent a controlled abolition of a financial risk for the country. we still believe the authorities have a lot of tools in the toolbox to control the situation and therefore there could be opportunities within the china property space. but you have to be selective and thorough. in the credit risk analysis. yvonne: you mentioned that you are still focusing more on a shares. what is holding you off when it

comes to dabbling in hong kong given these valuations, and what bias do you have toward that market? homin: the tech segment, there are some interesting opportunities. alibaba has taken such a beating that valuation, we can probably quote them -- call them a growth -- value company and set of a growth company. we think for the large tech platforms, the valuation is interesting and for the eight shares, other segments, you have a lot of sectors that face multiyear policy tailwind because of the government focus. also this is the segment that tends to benefit most from a turn in macro policy.

this is the reason we like the sector. the whole segment also helped the valuation come cheaper early to vliet the u.s.. we think that is a good story to play for the coming term in chinese policy toward growth, and stabilization. that is what we like those shares more. yvonne: have a great weekend, and q, asian growth strategist at lombard odier. resisting selloffs after the close, bond markets shut for veterans day in the u.s.. five year yields are climbing four basis points right now. the highest we have seen since february 2020 at 1.25%. two year yields also rising about two basis points. they handle for u.s. 10 year yields. these concerns are very much back in focus. we will see how that roils the

market if it does to wrap up the training week. paul: let's look at what is going on on fire above us, the international space station. the spacex crew has docked with the iss. they have been in that position for some time and we are waiting for the hatch open and those four crew three astronauts to enter the iss and meet up with the others. three from nasa, one from european space agency, they are all on board. it is designed to dock autonomously, the astronauts can take control of the space craft if needed but the entire thing does happen automatically. some delay with getting hatch open. i'm keeping an eye on spacex push vs twitter feed, -- spacex's twitter feed.

it will be a big year for spacex in 2022. falcon 9 launchers have become fairly routine, but next year they are expected to see at least three lunches, including a couple of simultaneous landings of stores on dutch of boosters on -- boosters on grown ships. let us get to vonnie quinn with a check on the first word headlines. vonnie: china may oppose efforts at the cop 26 climate talks to phase out coal worldwide. concerns will keep beijing from supporting the proposal. they are struggling to meet power needs and are ramping up coal at record levels. beijing is also resisting emotion for governments to beef up emission plans by the end of the year. a chinese developer has told investors they may miss interest

payment deadlines. the company had a bond do thursday at in your $30 million one due friday. there was a 30 day grace period. they say legal and cost issues are to blame. they are still sorting through the matter and nothing is set in stone. the u.s. is warning europe that russia may plan to invade ukraine. tenders are flaring between moscow and the eu over energy supplies. sources tell us moscow is -- moscow says it is an and dutch an internal matter and desire -- denies aggression. top white house officials do not believe that fed chair jay powell is disqualified from being appointed a second term. he sold the sock special stock

index -- some have concerns with the trade. 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. paul: thank you, let us look at what is going on at the international space agency -- i beg your pardon, the international space station. the hatch of the crew three dragon has opened, the crewmembers are making their way on board the international space station thomas carry on luggage. there is plenty of cargo to be unloaded. the nasa astronauts and the european space agency's astronaut, there are three others currently on board for the mission. we will keep an eye on that is the astronauts make their way on board. a successful docking.

yvonne: exciting. we have breaking news with the republican challenger in new jersey's governor race. we were waiting for him to concede, it seems like we have confirmed that he has conceded in that race after more than a week since new jersey governor phil murphy won. still ahead, a rise in and quarter revenue on the year, and carry -- kerry mok joins us to discuss airfreight, passenger services and all things aviation logistics. a quieter affair than usual, but alibaba singles' day racked up a record, nearly $85 billion. this is bloomberg. ♪

yvonne: chinese president xi jinping delivered the first historical party doctrine and 40 years which gives him the mandate that potentially rules for life. our asia correspondent joins us now. all obstacles are removed for him. stephen: this is different times, the past historical documents, the prc was not formed in the economy was in shambles. and 76 after the death of mao zedong, there was a rise to what they became as paramount leader. there was the process of reform in the economy was a fraction of today. xi jinping has one of the most powerful militaries in the world, the second-biggest economy and now he has essentially ultimate power. he has spent the last two terms, and years, next year will be the

end of his second term, on a vast anticorruption campaign which happened to rid many of his rivals including -- and others. he is unrivaled even on the standing committee which is supposed to be a body of nine individuals with equal power but ranked with the president of the top. but nobody on the committee right now has the experience, the age to be a successor and usually by this time in a president's second term, nine years and, we would have known who the heir apparent is. there is no indication who it is going to be. that is the clearest signal that he will most likely have -- go for a third term at the party congress next year. paul: that clear air for his leadership, but will this mean for policy going forward?

stephen: if you have ultimate power, would you want to use it? you are not going to sit on your hands. 2021 has been an exertion of that control and that mandate, which was confirmed by the central committee over the last four days. he has the strongman of china and he has stamped his power and his grip on the nation and the economy with crackdowns on big tech, hong kong, cow, gaming, insurance, fintech. whether those will be relaxed going forward is anybody's guess, but again he is going to use that platform that he -- now that he has the mandate to further his common prosperity goals and that is wide-ranging a car's all of society -- across all of society. he will emphasize self-reliance and not dutch i don't want to say decouple -- i don't want to

say decouple from the united states but less reliance. even moving hong kong from chaos to governance, they mentioned taiwan. you can see in this doctrine where it says we need a united country around the party with xi jinping at the core. they mentioned they have goals through 2049. his policy will be at the core according to the doctrine of those policies through 2049. he could live into his 90's as paramount leader. paul: stephen engle. alibaba says singles' day posted record $84.5 billion in sales with an indication of what the holiday shopping will look like. joining us for more is bloomberg intelligence reporter.

-- the prosperity agenda, we got that wrong. what did this look like for alibaba? >> when you look at the growth on a year on year basis, things have sloped for alibaba. even after look at the record high, it has sloped to about 8%. last year we saw about 26%. there has been an impact of correcting and the shift toward common prosperity, and overall gains from the shopping. yvonne: how will this play out or fit into what we see next week, which is earnings from alibaba? what are your expectations? >> alibaba will expedite investments into services.

there will be -- they will counter the slower growth we will be fighting over the next 12 months and i expect the country -- company to recognize the importance of these instances to drive prospect did --prospects into 2022. yvonne: you can get a roundup of the story in today's edition of daybreak, subscribers can go on the terminal and this is available on the mobile phone and the bloomberg act. you can customize settings so you only get the settings and assets that you care about. this is bloomberg.. ♪

yvonne: a check on the latest headlines, didi jumps thursday before gains and relaunching in china. reintroduction could happen by the end of the year as regulators wrap up their cybersecurity investigation and finalize penalties for the company. they have dismissed this. ride-hailing with the pandemic denting demand for services. a loss of 900 -- 188 million dollars, higher than the year earlier. they are said to go public through one of the largest stock -- spacs. the city state abandons covid zero policy. the carrier had a billion-dollar loss, more than the year earlier. singapore now allows visitors

from about a dozen countries to enter. plenty more to come on daybreak: asia, stay with us. this is bloomberg. ♪

vonnie: this is daybreak a shower, i am vonnie quinn with the headlines. xi jinping has won a mandate for potentially link for life. he delivered the first doctrine by attorneys leader in 40 years, joining moshe dong and one other. -- as a dong and one other. -- mao zedong and one other. a hong kong judge has jailed a

man nearly six years for attending -- chanting a band protest slogan. the 31-year-old was dutch we did not guilty. he says he does not regret his actions. mexico central bank raising by a quarter point. there's is led by governor alejandra who is seeking -- even as it accelerates faster. in peru also tightening policy after inflation -- ray dalio morning but the effects of inflation on real wealth. he says some people make the mistake of thinking they are getting richer. but they don't see their buying

power is being eroded. he added the ones most hurt or those with money in cash. he says there are better assets to hold. 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.. paul: negotiators at the cop climate talks embracing extra time over the weekend, key issues are unresolved in among the holdouts china is signaling it will not support a phaseout of coal or frequent new climate pressures. reporting from glasgow. >> officially it is the last day of the cop26 climate talks. 200 countries are negotiating rules do with carbon trading, and climate pledges they submitted to the united nations.

there's is also a sticking point on climate finance where rich countries have to give money to developing countries so they can cut emissions, improve technology or adapt to a warming planet. even if they have to get compensation back climate change such as floods and hurricanes. it is not easy to get 200 countries to agree to a common language but that will be needed for a deal in glasgow. whether we get one is not clear and if there is not a deal today, we will be here reporting on saturday. with bloomberg news here in glasgow. paul: let's check on what is going on in the markets at the moment. the final trading day of the week and we are seeing risk on sentiment. the nikkei better by 1.1%. all sectors currently higher. real estate and materials leading the way.

similar story in australia, materials listed out. a sx pushes higher about 9% -- .9%. all among the top performers. the kospi up about .9%. a bit of weakness. yvonne: treasury, the weakness when it comes to bonds resuming after the utterance day holiday. we saw a pause but it seems like yields are back up. that is spreading. look at the aussie 10 year yield at 1.82. this has been happening for the shorter end of the curve, but when it comes to u.s. spreads between the five and 30's, that has narrowed. inflation concerns are once again top of mind for investors. paul: still to come, an exclusive interview with an airfreight specialist, ceo kerry

mok about the global supply chain crunch. stay with us. this is bloomberg. ♪

yvonne: i check on the latest headlines.

softbank invested about $3 billion in india and it could be up to $10 million next year. investor -- investment advisors told bloomberg fintech is the biggest industry in the country. india has been a bright spot for softbank, which has been an early investor in some companies. >> the right opportunity in the right valuation. yvonne: alibaba is a single day shopping festival had a boost after a year of heightened scrutiny. this could ease concerns among investors grappling with a 30% slump in alibaba shares. the company was hit with a record antitrust fine. singapore units of coinbase and

finance providing cryptocurrency to the state. less than half of hundred 70 that applied last year. previous data showed that many dropped out, two were ejected -- rejected and three were approved. paul: our next guest runs company that provides ground logistics and catering at the singapore airport. the company posted results this morning, revenue climbing over 27% in the second quarter thanks to the growth in cargo and food insecurity services. let us bring in the president and ceo at sats. a pleasing set of numbers given the circumstances, but when you see things returning to normal and will there be a new normal once the pandemic research and sees--restrictions ease?

kerry: we have done well in the past two quarters, revenue is going up. when we look at the future, with them opening up out of singapore, it will be more coming up and more flights increasing out of the airport. we are well placed to get onto the recovery of aviation travel and we have been working very closely with our customers in terms of the new going forward. for several we have been putting a new solution in place to drive the new wave of passengers making safe travels around the world. paul: we see singapore opening selected companies -- countries. which market doozy is recovering fast as in which are --still lagging -- which markets do you

see covering fast and which are lagging? kerry: when you look at how the pandemic has changed, u.s. and europe is opening up, asia is a lockdown. it is good news for sats. more long-haul flights. singapore was taken off the waitlist in europe so now the question is whether we will get quarantine free travel into europe. the market has put singapore into warranty and for 10 days and hopefully this does not turn out worse and we can have more trouble. i think that will help us do the connection out of singapore. yvonne: there has been vaccinated travel lanes as well, alicia was big news recently. do you think that will impact your business? kerry: it is fantastic news for

us. singapore and malaysia is one of the busiest routes in the world and with that coming from malaysia, we are happy and optimistic that more will come. for a cargo business with more passenger space opening up, we should see better use for our cargo businesses. cargo business has been doing well over the pandemic and has grown quite a bit. global it has gone up, asia has gone up about 15%. we are optimistic in this segment and from a strategy we will invest more in our cargo is in his. yvonne: you mentioned the demand for cargo. as countries emerge out of covid, do you think trend could last? how long do you think this high demand for cargo will be? kerry: the cargo business growth has been driven by challenges we see in the ocean freight

segment. ocean freight rates have gone up tremendously compared to cargo. air cargo is relatively cheaper compared to ocean freight. 12 13 times more expensive, it is now down to about three times more expensive. because of the supply chain crunch we are steve -- seeing the man for air cargo. it is still reliable. paul: how much -- how about your food solutions business? you have plans to open more outside of singapore to supply other markets. kerry: yes and our business has been doing well. food is powering up the revenue growth. we have pivoted into the nontribal side and we have been investing throughout this pandemic into new -- non-travel

side and we have been investing drug the pandemic. even as travel comes back we need to find a more efficient supply chain for our customers. that's why we have been opening up new facilities in china, india and thailand. that will help us get to newer growth markets in asia. we believe with our culinary expertise, our food safety record and our food production technology, the space on the food side is bright and we will continue to invest in innovation to drive growth. one thing we are focusing on is alternate protein. singapore is a hub for this. one thing we are looking at is making it more accessible to consumers in delicious food, healthy food, they can use as a substitute. paul: one business that suffered

the most during the pandemic was the cruise business. i'm wondering how your outlook is cruise turn normal -- cruise terminal operations. kerry: the cruise business is seeing better rates. there are still social distancing measures put in place we have seen growth and bookings are looking good in the next quarter. we are optimistic. people are looking to travel out of singapore. this segment presents a safe way to allow them to have a holiday so we see volume picking up especially with the holidays in singapore. yvonne: it seems like that tide is turning for singapore in the aviation center -- sector. how do you think the -- how

close do you think the country is to be pandemic levels- -pre-pandemic levels? kerry: it will be sometime in 2024 or 2025. it's uncertain in that we do not know how the pandemic will turn out. recently in china there is a spike as well. we are concerned that if the spike continues, it will affect travel confidence. but following the forecast, we are setting ourselves up for growth. we have crosstrained quite a bit of our workforce so even when volume comes back we believe we are well-placed to handle volume growth. we are working with our customers to have more volumes and more flights. we want to support them in new solutions using innovation as well. in the past couple of quarters we invested in digital

technologies. we recently built digital control towers in singapore and that allows us to share more data with our customers. we are able to use analytics to improve our productivity and efficiency in our business. we think that will be a key driver as volume comes back and we want to be in a better position to support growth using digital technologies that i think will be important for a company like sats. yvonne: as you get ready for these presumptions of flights, how do you have your staff ready? how will you make this a smooth transition to make up for the surge in demand we might be seeing when it comes to flights? how do you make sure your stuff is ready?--staff is ready? kerry: during the pandemic we

made a conscious decision to maintain our capabilities as a hub operator. we have a lot of nontravel business. we were able to deploy them to other segments of our business and crosstrained them. we saw this capabilities. we will be working with government agencies to bring more staff for training and one of our plans is to train a lot of new staff ahead of the demand. in singapore, it is important for us to continue to do that. yvonne: kerry mok, sats president and ceo joining us from singapore. a wave of covid infections beginning to take hold in the united states, even with high vaccination rates. we asked dr. chris bayer, an epidemiologist at the johns hopkins bloomberg school of public health about this. >> we need to rapidly increase local capacity to manufacture. the idea that this should be a

first world product we are distributing really is problematic. the other challenge of course is that the pfizer vaccine in the mrna vaccines really require an ultracold technology and that is limiting in many countries. taylor: -- tom: do you see other vaccines that can help, johnson & johnson? >> easier, does not have the same cold requirements, astrazeneca also easier, in many countries it is the most commonly used. there are two new vaccines in the pipeline that will be easier to use and field if they prove to be safe and efficacious. those are novavax and another. lisa: we are seeing number of cases plateau in the u.s. and

rise in germany and in israel there have been covid wargames to figure out how to counter a more deadly strain. are we doing wargames? >> we need to do more immunizations. we are still under 60% immunized. as long as we are at that relatively low threshold, about 40% of the population is not immunized. that is why we are still seeing cases and deaths. we need to address the vaccine hesitancy and the folks who are still unwilling. that is a big part of the reason president biden is pushing and its. which are constitutional at least by the 1905 decision in the case of smallpox. lisa: the mandates are covering certain companies with many

employees. what about for kids? >> i think everyone agrees the vaccines look safe and highly effective in kids and a vaccine rollout in kids is going quite well. there is high demand out there. but it is probably too early to mandate. the pediatric vaccines are still being used under emergency use authorization. it is likely there will not be mandates until those are fully approved. lisa: i want to ask a dumb question, something all of my friends ask all of the time. if you have gotten vaccinated, does that mean you cannot get very sick? how protected are you after six or nine months without a booster? >> first it is important to remember that these vaccines whenever designed to totally

prevent infection. you can still acquire covid. what they work so well against is serious disease, hospitalization and death. and they dramatically reduce the odds of that. there still are people post immunization have gotten sick, read through infections. some of that is underlying conditions. you saw colin powell who was fully immunized and died of covid, but he was on cancer chemotherapy and was immunocompromised. so those folks are still vulnerable. but what we have to look at is the comparison between people who are not immunized and those who are, and naturally who is filling up the hospitals still and adding up to the over 1000 american deaths a day, closer to 1300. we are not out of it yet and we need to do better with immunization. we are still in that basic race between the virus and the vaccine. paul: that was dr. chris beyre

r, a johns hopkins bloomberg school of public health professor, and the school is supported by michael bloomberg, the founder of our parent company bloomberg lp and bloomberg philanthropy is. more to come. this is bloomberg. ♪

paul: softbank planning a

cautious approach toward china, eliminating the noise of government crackdowns as the ceo still sees innovation in several sectors. they spoke to us at the bloomberg india economic forum. >> china has many from aspect, but most of the noise coming are on b2c businesses with the businesses are touching the consumer. there are data issues. we believe that china is one of the major country centers for ai innovation in the world. in the long run, there are exciting opportunities for investing in life sciences in china, other businesses in china. and robotics, autonomous, etc.

we have reduced our pace in china because of the b2c businesses touch consumers but we are still in investing. >> how do you assess beijing's moves and what does it mean? >> the view i don't have -- i don't have a view on beijing's moves. but they have moved from a lot of b2c businesses. new startups, newcomers, to more deep tech which is what china wants to focus on, signing chips, ebonics, life-sciences, new drugs. -- robotics, life-sciences, new

drugs. we have invested in roughly 10 companies in china this year and those are the sectors they want to focus on. away from perhaps consumer businesses like gaming and commerce and so on. paul: that was softbank investment advisor ceo rajeev misra. let's look at the stocks that should be treating underway in china, alibaba having a blowout singles' day. we were wondering if things might be subdued with the prosperity goals but no. announcing billions in sales. darling back around singles' day.

it will be watched closely today, the u.s. rejected the request to launch an investigation into manufacturers. let's take a look at spacex. waiting for a hatch to open, it has been a wild but the crew three dragon should be heading through the hatch at any moment. this is bloomberg. ♪

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