>> good morning. i'm haidi stroud-watts in sydney. >> i'm shery ahn in new york. our top stories this hour. ages trading week set to begin in risk off mood. -- signs of beijing's discomfort with the rapid rise. speculation on currency trading.

reports the u.s. and japan may tap into reserve this week into -- in a bed to rein in prices. that's a bid to rein in prices -- a bid to rein in prices. how we are starting debt hitting the start of trade in sydney. we are seeing nervousness potentially when it comes to sentiment in asia. the changing of the guard at the fed and hawkish central-bank action is expected this week with the bank of korea expected to rise by at least 25 basis points. this is where we are seeing a little downside. we are watching out for qantas, the loyalty program. australians are burning through 7 billion of those frequent flyer points over the last several months. potentially a new flight route from qantas this morning.

trading up 7/10 of 1%. more tightening from the central bank. it looks like we will see a flat start to training going into the start. s&p futures up by about 25% 1%. we are watching the kiwi dollar. it is set to rebound. to put a stop to the selloff we saw earlier in the month. the aussie dollar is trading a little bit on the back at 72 -- $72.33. >> this is a thanksgiving shortened week. we are talking about who might need the federal reserve. will it be jerome powell? should -- could it be lael brainard? regardless who gets the job, it will be a tricky landing for the fed. we are talking about the quickest consumer inflation

since 1990. it is a strong jobs market but water majors like unemployment rates, female participation rates are still showing some slack. >> that gaping inequality is something central banks around the world have new address. at the same time, you're in asia we have seen recovery -- here in asia we have seen recovery. the bank of korea is looking to set to raise by 25 basis points. that hike for the be ok was flagged in october. we are watching inflation gauges from other parts of asia, particularly southeast asia as well as japan. it would be quite key to take a look to see the commodities value and the oil price pushing inflation further in asia. we have noted that consumer inflation has been so strong in the u.s., may be, not quite as dramatic in this part of the world. >> we are also watching the pc

ok. we have the yuan higher against the u.s. dollar. that is raising questions about how much more strength authorities will tolerate. let's discuss all of this with our chief asia economics correspondent into current -- enda curran. what does mean? i think we are at levels we saw the yuan when there was a shock evaluation in 2015. in the -- enda: first, we have the central bank. reminding everybody that this is not a one-way bet, the yuan is at a six year high. maybe, the pp you see -- the pboc wants to remind everybody

that traders and banks in china have to be careful and watch management be careful how you will youb -- how you will go when trading currency. i think the pboc is getting a little uncomfortable with where it is heading now. we know chinese exports are booming. of course, the economy is slowing the question becomes whether we move belly on -- beyond earnings. the pboc is not the only central-bank in the world that makes comment on currency. this probably will come more topical as growth slows. >> of course, we have the loan prime rate there as well. we are not expecting a change until november. this will not be the first policy they will reach for, right? enda: the story in china seems

more relaxed despite the fact they are worried about slowing growth. we have heard stagflation risk but they are not pressing the emergency button, partly because the growth rate is slowing. it was faster when you're ago. it is not quite as bad. with the slower moment of it is probably feeding into a bigger picture for the economy about sustainable growth. we know the story that they are trying to contain risk and debt and the system. the authorities have been making sure there is enough liquidity in the financial systems in monthly market operations. it is a question of what they do next. when it comes to the central bank story from the pboc is not seen as being on the front line of pulling the lever firmly in one direction or the other. haidi: japan and the u.s. may make a joint statement on oil reserves. our energy and commodity editor

david stringer joins us now for more. we have seen pullback in the markets after some of the covid lockdown development and concerns that we will get a release of strategic reserves in some way. will this potentially fix the dynamic of supply and demand? david: the u.s. has been building support for this alliance between major consumers to release the strategic stockpiles and really start breaking down the oil price. last week we talked about quite a start -- sharp drop on friday back from the seven-year high. the issue they are grappling with, leaders like biden and japan's new government, it is higher gasoline prices. clearly, the market is weighing

issues like a resurgence in coronavirus infections in europe. but it looks as though people are pricing in expectation. shery: how can we expect opec-plus to react? david: i think that will be interesting. what we have seen so far is that the opec-plus reducers willie -- really would respond to demand and that profit response from biden. we have also heard from china, xi jinping spoke with biden on the prospect of that. it will be interesting to see that dynamic in response when they hold the next meeting in early december. shery: our bloomberg editor david stringer there. breaking news. we are hearing that monster beverage is exploring a combination with constellation brands, the month -- the maker

of energy drinks combining with the corona brewer brand. monster beverage has coca-cola as a major shareholder. it has a discussed a potential deal with advisors. it cannot be learned whether monsters interest extends to a combination of some assets, a full merger, or if they are in dialogue with constellation. this may not lead to a deal with constellation, but, this is a huge deal if it were to happen in the beverages space. we are talking about monster beverage shares having fallen more than 3% this year. add, constellation brands heaven actually -- having actually gain 7% this year. this deal would require the support of the sans family you have an instrumental in the -- who have been instrumental in the brewery and become global beverages players. constellation would add corona and modelo to the monster beverage package if this deal

actually goes through. haidi: that is one big deal to watch. in the meantime, more news. vonnie quinn has first word headlines. vonnie: a nationwide lockdown in austria goes into effect monday after protests. tens of thousands rallied in vienna saturday after the government announced all adults must be back dated by february. on sunday, belgian police used water cannons to disperse thousands of protesters while dutch police arrested thousands -- dozens after clashes there. a buildup of russian troops and artillery to prepare for a rapid large-scale push in the ukraine. u.s. concerns about the possible intentions of russian president vladimir putin. despite diplomatic efforts, the

kremlin denies any aggressive intentions. china's competition watchdog order companies including alibaba, tencent, and baidu to pay $10.4 million in fines for antitrust violations. the companies must pay $78,000 for each of 43 breaches. that is more than fines earlier this year. the international olympic committee chief says he held a 30 minute video call sunday with chinese tennis star peng shuai and she assured him she is waste -- is safe. peng disappeared from public view earlier this month after alleging sexual assault by a former chinese minister. photos and videos released by chinese media over the weekend felt -- failed to quell worries

about her well-being. natural welfare. -- or welfare. i am vonnie quinn. this is bloomberg. haidi: ahead, we hear from the y lg bully on an future ceo -- gold and bully on -- bullion -- y lg bullion future ceo.

haidi: the bank of korea and the reserve bank of new zealand certain to raise interest rates again. let's bring in kateri not. -- katrina. look at where the policy right stands now and what the market

is preparing for going into the end of 2021. the market price is at 1.5 hikes. is there a strong reason for them to go harder? katrina: there is a bank of new zealand hike. there were .75% -- 0.75%. given the economic environment we are living in due to covid, i think it is prudent to go with 25 basis points or higher. they want to take the parsed -- path of least regret. that is taking a more cautious approach to monetary tightening giving -- given the economic environment. haidi: when it comes to korea, it looks like according to the latest analysis that it may finish its hiking cycle by the time others are getting ready to start. look at this chart.

they might be ahead of the curve in terms of where they are. they hikes in august last. we heard from governor lee in october that they will probably go again in this month. so, what is the risk there given how frontloaded policy has been? katrina: paris is an interesting case. on one hand -- korea is an interesting case. on one hand, we have elevated inflation pressures. higher household debt growth. on the other side, we have also got case number starting to rise. so, daily infections for covid have started to trend higher. that is concerning because domestic demand has started to recover in korea but with daily case numbers rising as well as hospitalizations, it does make the near-term path more concerning. we expect the bank of carissa --

korea, this week, it does make what will happen next year ended one -- a little more uncertain just because the path around covid is not clear-cut. shery: how healthy is the korean economy? ecus unemployment at levels that are not very desirable -- you see youth unemployment levels that are not very desirable. katrina: that's a good point. at the end of the day, one of their key strengths to the pandemic and into 22 is from the -- 2022 is from the export sector. semiconductor demand is high and that is an ongoing strength to the economy. at the end of the day, the chip

is the backbone of the economy. while they do have that strength, the pockets of concern should be addressed. it is speaking to longer-term productivity impacts to the economy. so, that should really start to be addressed. shery: what about china? what are we expecting the strong yuan to start weighing on the economy? could we see any policy action? katrina: we are thinking that prime rates should hold steady this week. if you are looking at the chinese economy, there is a plethora of issues. at the end of the day, the chinese economy is on a slowing growth trajectory. you have a slowing property market. you have environmental concerns driving the industry to slow. so, we would expect that

policymakers continue to take targeted action to guide the economy on that slower growth trajectory to keep things in a slow down as best as possible while they manage through this. haidi: moody's analytics senior economist joining us from sydney. next, ubs and deutsche bank have a new leader to look at what lies ahead. this is bloomberg.

>> the latest business headlines. aramco will look for investment opportunities in india days after reliance scrap plans for deals with the energy giant. aramco says it will keep looking

for potential investments in india with reliant. planning to roll out test rides of its electric two wheeler to more than 1000 electric that indian cities and towns. the softbank company receive 1000 orders a few months ago. deliveries have been delayed. test runs will only open to those who have reserved suitors. the latest ghost busters reboot topped the north american box office. taking in $44 million in opening weekend higher than sony's own production of 41 weekend. shery: two of europe's banking

giants have picked new chairman's. why is there this shuffle at the top now? >> axel weber at ubs and at deutsche bank are said to step down. the chief executive are -- officers at both banks are expected to provide strategy updates early next year. the bank thought -- banks thought it was important to change the leadership at the top. shery: would we know about the two men? nabil: deutsche bank is hiring a tech savvy executive from the insurance world. he ran a gone for 20 years before leaving in 2020. this is an insurer that gets the majority of profit from the u.s.. so, a lot of experience in the u.s..

he worked at av on banking and private banking. in 2019, he joined the board of citigroup. so, he got of a lot of experience in the u.s.. on the other hand, colm kelleher at ubs is 64 years old. he spent three decades at morgan stanley where he served as cfo and ran the trading business before he became president. he grew up in ireland, county cork and an oxford university graduate. they have both had very extensive experience in the u.s.. shery: do we know when they will get started? nabila: it is not expected to take place until the annual shareholder meetings. for both of those banks, those will be in the spring. both banks have their candidates in place what ahead of time. so they are well prepared for

how they want the transition to work out. shery: villa ahmed -- nabila ahmed in sydney with the latest. risks are growing with european virus restrictions. there are questions whether that will impact inflation and demand. let's look at how we are seeing the start of trading this monday warning in asia. some downside. a big week when it comes to eco-data and central-bank action. australian shares lower by .5%. we are watching new zealand where we are seeing a downside of about the same amount, into a week where the rpm is expected to raise hikes again. the question is whether they go 25 basis points. or even further, as partially priced by the market given the acceleration of recovery and

labor markets. chicago and k futures -- nikkei futures higher at the start of trading in tokyo. in the u.s., thanksgiving weekend. s&p futures are up about 1/10 of 1%. all of the focus is on a potential changing of the guard at the fed. we expect an announcement on fed leadership before thanksgiving. will it be jay powell? let's be a change with lael brainard? -- will it be a change with lael brainard? regardless, there are lots of concerns. we can execute a soft landing with huge repercussions for asian markets, in particular, japan. shery: we are talking about this policy with the doj really not moving given almost no inflationary pressures. the japanese yen holding at the 114 level. there is a little pressure against the u.s. dollar after falling all of last week.

the u.s. dollar as well as the policy divergence is being felt across the currency space. we are also expecting a little bit more detail when it comes to the fiscal spending package from toshiba who just confirmed a record of fiscal spending again. we will see korean trading in a few moments. after we saw that retreat last week against the u.s. dollar, given the factory prices last month, growth at the fact is based 2008, we will see a hike on what we expect in the trade fund. in a few minutes we are also getting the 20 day as part number. that will give us a pulse check of the state of global commerce. we could have seen a little pressure given base effect. at the same time, higher prices given supply chain disruption.

there is not much change on the aussie dollar but a little pressure on the kiwi now. up next, protest are growing in europe against restrictions. questions are raisedshery: we ae

fallout of the global supply chain crimes. japan's government is reportedly earmarking $6.8 billion for domestic chipmaking. tsmc factory. samsung will announce a location of its new chip land in the u.s. at this week. caps on reportedly met with u.s. officials to discuss ways to resolve the global chip crimes as well as -- the global chip

crunch. coffee costs are staying high. shipments from brazil, which produces about 40% of global supply, that usually take months are taking as long as 100 days. haidi: coffee prices soared to a decade high. futures surged 18% after drought and frost in brazil hit output. high fertilizer cost and shipping disruptions are seeing impact as well. read more about those stories in our newsletter. protests across europe this week. governments returned to strict measures to reverse the latest wave of infections. that's get more from our editor.

months after the opening experiment, we see a return to lockdown. talk about fact the mandate and the hospital's systems in dangerous risk of being overwhelmed in europe. >> what you are seeing basically is a phenomenon that frightens health experts. you are seeing a great number of infections in places that have very high vaccination rates. delta is efficient at finding pockets of the unvaccinated and infecting them with the proper measures are not taken. thus, we have lockdowns. there are measures that do not allow the unvaccinated to do things that the vaccinated can like go out and eat, go see a movie, go to a public event. in austria tomorrow, there will

be a lockdown. it started out against restrictions against people that were not fascinated by the situation got so bad that now it will be a total lockdown starting tomorrow. basically, you can only go out for exercise, work, and as a doctor and some small shopping. -- and to the doctor and some small shopping. >> are compulsory vaccinations coming in austria? ian: they are talking about it in germany. you know, it is something, there is a question. is this the only way we can finally end this thing people refuse to take it? shery: in the u.s. we are seeing dr. fauci urging vaccination for adults, the boosters, i mean. ian: booster of take has been pretty decent. that's booster of take has been pretty decent, maybe not high enough, but there are over one million a day which far

outstrips first shots and second shots. but basically what is happening, what happened in europe tends to happen in the u.s. several weeks later. there is a lot of fear that what we are seeing in europe now, which is better vaccinated than the u.s., will start happening here in the u.s.. cases are taking up especially in the midwest and in the northeast. -- taking up especially in the midwest and the northeast. haidi: ian fisher there. let's get to vonnie quinn with first word headlines. vonnie: the growth forecast for this year and next on the back of the tourism revival. the economy set to expand as much as 1.2% this year exceeding an earlier forecast of 1%. next year's good head for percent.

thailand began reopening this month to vaccinated visitors. more than half the population is fully inoculated. china's foreign-exchange committee is urging banks to limit speculative currency trading. sources say the organization overseen by the doc is advising vendors to report any abnormal transactions for more than 50 chinese and overseas banks. china and the u.s. may make a -- japan and the u.s. may make a joint announcement on the relief of oil reserved. that's oil reserves. -- oil reserves. prime minister's the government is reviewing measures to tackle oil -- higher oil prices.

the bank is still helping u.s. clients hide accounts from the irs even after it paid two points $6 million in penalties in 2014 and promised to stop. a civil lawsuit says some accounts for south american clients. credit suisse says it is continuing to cooperate fully with authorities. global news, 24 hours a day on air and on bloomberg weight take -- quicktake. i am vonnie quinn. this is bloomberg. haidi: ahead, we will be hearing from the while g bullion futures ceo on how she is evolving a family business in gold. this is bloomberg.

shery: and alert. chile is headed to a december 19 presidential runoff between conservative candidate and the leftist rival. we will have more on that later. the ceo of why lg -- ylh bullion futures expects brighter prospects for thailand's gold market, the third-largest in the

world. after helping build the gold retailer to one of the nations biggest traders in the metal space. she spoke to bloomberg about how the family business has expanded and her outlook for the mental. >> in thailand, it has been improving for the covid situation. the gold market is increasing. last year, there was a lot selling in the market, which is on the opposite wave. maybe last year, people in thailand wanted to sell to get cash to use for our daily. last year. but, this year there is a lot more of gold bars. because of gold prices increasing, there is more demand.

for tied people, most of us in gold 10% to 20%. gold is very liquid and tangible. in thailand, even the poor and rich keep investment assets. in thailand,, the gold bar price in thailand is increasing. it is not coming down. when we see the gold price in the short-term, there is some drop. but the outcome we think might come down a little bit. overall, long-term, we believe in gold. we have pressure from reducing qe and increasing interest. long-term we have to focus on new benefit numbers.

that would make the gold price go up even longer. >> you mentioned tangible. cryptocurrencies are here. how has the evolution of crypto affected what you do? tipa: in the crypto market, we can see correlation between the cryptocurrency and the gold price. sometimes when you see cryptocurrencies going up, the price of gold is coming down. so we can see movement of the asset. but gold is still gold. it is still tangible. there is still a lot people that believe in this asset because it is tangible land -- and very easy. so, the gold market is doing well for the time. rishaad: have you seen a

fallback in demand because of crypto? tipa: no, but i see some movement. i see some movement when there is a setting of gold price. sometimes, they moved to cryptocurrencies. but when crypto prices come down they moved back to gold. so i see a movement of it. rishaad: i want to change the subject a little bit. you are ceo of the company set up by your parents. how is your relationship with them? tipa: we still work together as a family and expand into a group. we have ylg thailand, that sales to wholesalers, gold shops here and also investors. we have ylg singapore that we used to sell to other companies in asia. we also have ylg futures.

so, we have many companies undress. in the whole family, we separate into a small for each business. overall, we still work together as a family. rishaad: give me a sense of how you are revolving the business. tipa: in each business, there is a lot of change coming. so, we have to be able to be at hand. we have to adapt our business. overall, we pick a direction together. rishaad: where do you go next with the businesses? how does the industry evolve with all of these different factors playing in? tipa: i think in the future there will be more fintech and technology. that is how we develop the products in thailand. or example, to buy gold with us,

you know, it is less now. even the traditional gold shops used cash. for us, it is cashless. we have a platform that can provide 24 hour deliveries to them. everything is mostly online. we use technology to improve the business and make it quicker for the client. right now, everyone needs convenience. we are working harder to give that to clients. not only gold bars, but other products and in thailand, we are now introducing products to local markets so they can use it online also. haidi: ylg futures ceo. coming up next, a chinese tele-star -- tennis star

insurance us she is safe. we have the latest -- insurers us -- ensures us she is safe. we have the latest.

>> u.s. labor secretary marty walsh is planning to meet with key members of the transport industry in los angeles to discuss supply chain issues as the nations biggest ports.

the biden administration is focused on solving the problem. >> we have oled knowledge that inflation is real and we are moving -- we have all acknowledged inflation israel and we are moving towards working on that by -- is real and we are moving towards that by increasing the ability of people to get better paying jobs. this will reduce inflation as we move forward and certainly there is more we have to do. obviously, the supply chain is a big issue. we have to make sure that particularly on the west coast, we ease that. making sure turning the ports 24/7. i am going to los angeles in a couple of weeks to talk to trucking companies and the ports about how we stay on top of that. it is very important. almost 60% of all products coming to the u.s. come through the port of l.a.. >> mr. secretary, do we want wages to catch up with prices?

obviously, we don't want real wages to come down. that hurts the worker. on the other hand, won't that just feed inflation? secretary wass: when it comes to inflation, i think it is in -- secretary wass: when it comes to -- secretary walsh: when it comes to inflation, too many americans in this country are not earning good wages. to many don't have a chance to get to the middle class. too many families don't have that opportunity. i think the president plan of ill back better -- build back better is to create a pathway to the middle class. the more people we can create that pathway for in marginalized communities, communities of color, communities of color, so many people have not had the chance to experience the american dream. we need to do more there. these two bills will help us with that. as far as inflation, we will have the ability to bring cost down. if you have more supply and product and you have people earning more money, that is a

recipe of success. david: one of the priorities of president biden since he came to office, and yours as well, has been to improve the lot of organized labor. we are seeing perhaps some ramifications of that with the dawn -- the john deere contract negotiation which seems good for workers. can you found for, strengthen, enforce organized without feeding inflation? marty walsh? i think -- marty walsh: -- secretary walsh: this is probably one of the most prolabor prounion administrations in the history of the country. saying that, labor has a role to play as well. they have to go out of their whether it is a current or new contract to let people know we work together with businesses to move businesses forward. some of the disputes we are seeing around the country is over wages and health care and

pensions. but, some of it is over working conditions too. so, the occurrence earns -- the concerns people have in this country now generally, their concern is making sure they are going into a safe work environment. we are still living in a pandemic. i think some of these contracts are really about work conditions. that is something we have not seen in quite a bit. david: what are you seeing on the process i should -- on the participation front? what can the department of labor do about it? secretary walsh: we are not seeing the participation rate we would like in the country. there are millions of jobs we need to get filled. but, we have it on employment rate of 4.6%. since president biden has been in office we have added 6.5 million jobs to the economy, a faster recovery that initially predicted. we have to continue to move forward one step at a time here. haidi: the u.s. secretary of

labor marty walsh speaking with david westin. let's get a check on business flash headlines. >> told senior managers he would consider leaving his he is unable to fix a company's culture problems. kovic left open the possibility of stepping down. offer to buy telecom italia for $12 billion in the world's largest telecom purchases ever in europe by a private equity firm. preliminary cash offered 55 year, however, we are told that telecom italia's largest shareholder is likely to oppose the offer which i undervalued.

egs nominated the former morgan stanley chairman to succeed faber -- weber. weber had suggested the bank consider appointing a woman as his successor to improve gender diversity on the board. deutsche bank has tapped alexander wynaendts as its next chairman to help guide as it emerges from a decade of restructuring. he is set to replace paul in may. the bank named a chief risk officer from june. the head of the international olympic committee said he held a 30 minute video call sunday with the chinese tennis star peng shuai where she ensured him she is safe. it is the latest twist. following her allegations of sexual assault against china's

former vice president. lance, bring us up-to-date. lance: good morning. she held a 30 minute phone call with the president of the ioc. what was interesting about the call was it came after some videos had come out with appear to the over the weekend. on the video call she wasn't smiling. she said she was safe that she was -- she was smiling. she appeared safe and well at home in beijing with friends and family. it was a bit of a relaxed and relief note. shery: yet, this is such a sensitive time for her that xi jinping with the beijing olympics. -- for president xi jinping with the beijing olympics. lance: this is a sensitive time for china.

so, it's diplomatic relationship if countries pullout of the olympics, the list goes on. shery: do we know if there is any drive to boycott the beijing olympics from any countries or private organizations? linus: i think the british prime minister boris johnson is hinting at a potential boycott. but at this point, it is still in the early stages. in one of our reporting, one of the human rights groups said this is really just the beginning rather than the end of the saga. so, there is a lot to see going forward. shery: the wta has taken a strong stance in this story. how does this go going into the winter olympics? linus: i think people will be watching how china handles this. one of the reasons that research

companies strategy risk we spoke to talk about how the video raced concerned she was -- raised concerns she was coerced. it sounds like there is a lot of controlled message coming, ending with the call with the ioc president. haidi: we will continue to watch that. let's look at our markets. monday morning, start of the week underway. we are seeing some hints of nervousness potentially over that a quicker than expected fed taper. a lot of central-bank action through the day in the week as well. we are seeing a downside of about 7/10 of 1% when it comes to trading in sydney. look across the sectors pretty -- sectors, pretty much every sector other than food, beverage, and tobacco is lower. kiwi stocks down 9/10 of 1% into

the rpm decision later on this week. potentially, a 25 basis point rate hike there given the faster pace of inflation as well as recovery in the labor market. nikkei futures in tokyo down by 6/10 of 1%. so kospi futures -- co kospi --seoul kospi futures higher. we are seeing renewed demand from haven after a number of fed officials raised the prospect of shifting the pace of the taper. the aussie dollar is holding pretty steady, of the bible when 5% after -- up by .5% after friday. shery: coming up, john vale joins us from tokyo to discuss

the prospects for economic recovery in japan. we have more stimulus on the way. the market opens in seoul and tokyo are next.

shery: welcome to bloomberg asia. i am shery ahn. haidi: asia's major markets just opened. asia's trading week is set to begin in a risk off mood. there are concerns about the fed tightening and europe's virus resurgence. there is a new signs of beijing's discomfort. it banks are told to cap

speculation on currency trading. the u.s. and japan may tap into oil reserves this week. japan is coming online now. look at the nikkei. this is after we saw gains. most sectors are in the right now. consumer discretionary, institutional's leading the decline. a taper by utility and materials is seeing a little upside as we are under a little pressure. the japanese yen is holding at the 114 level after it fell all of last week against the u.s. dollar. we are expecting more details about the prime minister's record fiscal package. we are seeing coffee gaining fourth. we are getting early traded numbers for the first 20 days of this month. when it comes to export figures, up 26.6%, a slight easing.

when it comes to the important numbers year on year, 4.19%. this as -- 41.9% gains. this as we have seen a supply disruptions continuing to really boost exports. not to mention, how the base effects may have really pressured those numbers as well. all in all, we are seeing double digits. exports to china rising 24%. exports to the u.s. rising 8.9%. a strong 32% gain year on year. haidi: we talked about the impact when it comes to energy prices and potentially about japan and the u.s. unleashing strategic reserves. we are seeing that play out when it comes to the sector must affected by that, the energy sector in australia down by 4.2% at this point. all but food and beverage and

consumer is lower at the moment. the aussie dollar is studying somewhat at 72 u.s. cents. it has suffered a few blows, but, it seems to be trading flat at the moment. new zealand up by 8/10 of 1%. we are getting into that are bm decision -- are bm -- rpm decision where we are expecting a rate hike of 29 basis points. -- 25 basis points. japanese equities are lagging expectations but we could see a catch up. john vail's joining us out of tokyo. what are the drivers for this revival we have been expecting when it comes to japanese markets? don: a lot of it is due to the auto sector which finally seems to have enough chips to britto's enough. -- produce enough.

so, there will be more cars on the lot. and also, consumers are actually getting dizzy -- busy in every respect here. people are getting back to a more normal life. it happened a little slower than i thought. japanese people tend to be rather cautious, but, it seems like things are picking up now in the third quarter. in the stock market, i think we could see some international funds flow to japan. it is about 15 times this year's earnings compared to the states. earnings are growing here quite rapidly, just like everywhere else. companies have pricing power. they can make a lot of money just like u.s. companies are in

the states, selling cars at rather high prices. even though there are fewer of them. but even in the domestic market, you see prices rise here. companies have pricing power. it is a set in first -- a significant boost to profits. shery: in can -- in korea we continue to see strong export numbers but we may be getting a break this rate hike from the be ok this week. -- we may be getting a break hike from the bank of korea this week. john: korea has been a strong country overall despite the rise in cases going on now. the market has slowed down a great deal too. prices has been falling. the bond market is pretty pessimistic about the future for the next two quarters. perhaps it will pop up after that. but, they are making a great deal of money there. it is a very successful economy.

i think for the long-term, investing in korea does not have much doubt about it. it looks like a very solid situation for the country. shery: talk about the u.s. market given we are expecting that decision on who will head the federal reserve as well. our question of the day now is asking how would an early taper affect assets? john: it will be a mixed bag. obviously, like most everything. if it gets the oil price down that will be a very successful trade-off for having slightly higher interest rates. if oil prices come down, we do not know whether opec will cooperate in any way. release of reserves will have some effect in the short-term term. but, there seem to be many international agreements which make it tough to cut reserves too much. so, it is convincing opec that the world is united against

them, keeping prices where they are. we will see how it goes. certainly, higher interest rates will affect sectors like ring sand doubt -- like banks and will be positive for them. the counterargument is that if granger is leading the country there will be more restrictions on bank going forward -- on banks going forward and will use regulations more than powell will. that would affect the economy. shery: so a faster rate hike is not so positive for emerging markets especially when we are seeing the stocks compared to advanced economies at halo. a john cowan for some emerging markets, that is certainly true. -- john: for some emerging markets, that is certainly true. the big ones can probably ride it through as long as the tech cycle is strong and, in china, avoid a major slowdown. i do not think a moderate rise

in interest rates would affect those countries too much. haidi: great to have you joining us from tokyo. let's get to vonnie quinn with the first word headlines. vonnie: a nationwide virus lockdown in austria goes into effect monday after a weekend of protest in several european countries over traffic -- tougher covid restrictions. tens of thousands rallied in vienna saturday after the government announced all adults must be vaccinated by february. belgian police used water cannons to distribute protesters while dutch police arrested dozens. the u.s. shared intelligence with european allies that shows russian troops and artillery to prepare for a large-scale push into ukraine. we are told the information backs up u.s. concerns about the possible intentions of vladimir putin. european leaders have set up diplomatic effort to deter while

the kremlin denies aggressive intentions. the international committed -- committee chief says he had a 30 minute video call with chinese tennis star peng shuai where she assured him she is safe. peng shuai told him she wanted privacy respected. peng shuai disappeared from public view earlier this month after alleging sexual assault by the former chinese vice president. photos and videos released over the well -- weekend failed to quell worries about her welfare. japan is said to earmark 6.8 billion for chipmaking. the money will be used to strengthen domestic production, research, and develop it, upgrade facilities, and reduce carbon emissions. the first project is likely to be tmc -- the tmc factory. global air -- global news on air and on bloomberg quicktake.

i am vonnie quinn and this is bloomberg. haidi: we will have more analysis on the outlook for japan's economy later this hour. but first, the yuan rapid rises causing concern in beijing. this is bloomberg.

shery: beijing appears to be increasingly uncomfortable with the surge in the yuan which rose to a six year high. let's bring in our chief north agent -- asian correspondent in hong kong.

>> they are concerned with the currency so far this year. go back six years. in 2015, i remember when the market went into a tizzy because they devalued the yuan to boost growth. we have slowing growth in china now and a surging you on. --yuan. so we are learning that the china foreign-exchange committee set up a few years ago with oversight by the pboc is, according to bloomberg news, been instructed or, maybe, advised lenders, banks, and institutions in china, urging banks to limit speculative fx trading, to be risk neutral when it trading fx with themselves and clients and advised them to better track proprietary

training and improve risk management. people familiar suggest banks conduct internal reviews with training volume and proprietary debt. debt. this deviates significantly from the norm. you have rising inflation and slowing growth.

at a conference this weekend, essentially saying, if demand remains weak, pbi stays high, as it has been. corporate profits are squeezed and existing risk in the economy is released too quickly. the scenario of quasi-stagfl ation is very likely. shery: stephen engle joining us from hong kong. we are watching china's tech giants at the open after china's competition watchdog ordered alibaba, tencent, and baidu to pay a total of $10.34 million each. peter, what are these fines about? peter: you have seen beijing crackdown on tech companies in a number of different ways over the past year. this is one piece of the bigger puzzle.

they are fined for incidents of deals where the companies did not seek approval from the regulators where the regulator announces they should have. so, roughly $78,000, they are working their way through some of these previous actions they view as violations. haidi: you say that the numbers themselves are small. what are the broader implications? what can we take away? comes next in the crackdown? peter: well, there is hope, certainly, by investors and by the chinese themselves that regulators are through the worst of the crackdown at this one, that there are not big surprises coming. i think optimists would view this as one more sign that

regulators are moving through past action that they view as violations of the antitrust law that these companies should have sought approval for these deals in the past, but now they have resolved that. the numbers, as you say, are not that big. $78,000 to be able to put one of these violations behind you is probably the good thing from the standpoint of an alibaba, a tencent, or a baidu. shery: dare i say that the intensity is winding down? how does this fit into the broad crackdown? peter: again, that is what the optimist would see. also there is bigger ones. as amr is the same regulator that find alibaba $2.8 billion. there are big fines in the past. there is certainly hopes that this is the worst of the crackdown. but the reality is that they are

not signaling clearly. one worrisome sign as you are seeing many of the most problem -- prominent ceos under the industry stepping aside, foreshadowing that they anticipate that they cannot maintain control, at least, direct control of their companies. shery: peter elstrom there with the latest. you can get a roundup of stories in today's edition of daybreak. it is available on your turmoils -- terminal and on the app. this is bloomberg.

shery: this is daybreak: asia. the fallout of the global supply chain crunch.

japan's government is reportedly plan to earmark $6.8 billion to bolster domestic chipmaking for the current financial year, the first of the products is likely the gmc factory. samsung will announce the location of its new chip plant in the u.s. this week. samsung reportedly met with u.s. officials to discuss ways to resolve the global chip crunch as well as incentives offered as it -- if it builds the plant in the u.s.. turning to coffee, costs are staying high. shipments from brazil, which produces about 40% of global supply, that normally take one month, are now taking as long as 100 days. it is due to a tight supply of containers and vessels. haidi: this is close to our hearts. we have had drought.

shipping disruptions are also feeding into those as well. on the bloomberg terminal, users can read more about those stories, in our newsletter. shery: stepping -- sticking with supply chains, marty walsh is planning to meet with key members of the transport industry in los angeles to discuss disruptions at the nation's biggest port. he told david westin the biden administration is focused on solving the problem. secretary walsh: we acknowledge inflation is real and we are moving towards working on that. one way we are doing that in this bill is by increasing people's ability to get into better paying jobs. this will help us reduce inflation. as we move forward, all you have

to do, we have to make sure that on the west coast, we ease the supply chain. the president has been very focused on that, turning the ports into 24/7. now, i am going to los angeles in a couple of weeks to talk to trump -- trucking companies and ports about how we continue to stay on top of that. it is very important. almost 60% of our products are coming through the port of l.a.. david: mr. secretary, do we want wages to catch up with prices? we don't want real wages to go down. that hurts the worker. if we really kept the wages of, but that's just -- well that just -- secretary walsh: too many americans in this country are not earning good wages. too many don't have a chance to get to the middle class.

too many families do not have that opportunity. i think that build buck -- back better is to create a pathway to the middle class. i think the more people we can create a pathway for in marginalized communities, communities of color, women, so many people have not had a chance to get to the middle class and experience the american dream. we need to do more there. these two bills will help us with that. as far as inflation, we will have the ability to bring costs down. we do have more supply of product. you have people earning more money. david: one of the priorities of president biden since he came to office is to really move with a lot of organized labor in particular. -- improves a lot of organized labor in particular. we are seeing the john deere contract negotiation that looks good for workers. can you buttress, enforce,

strengthen organized labor without feeding inflation and driving up wages? secretary walsh: i think organized labor has to do their work too. this is one of the most labor friendly administration's in the history of the country. but labor has a role to play as well. they have to go out with current contracts or new contracts to let people know we can work together with businesses to move businesses forward. some of the disputes we are seeing around the country, some of it is over wages and health care and pensions. but, a lot is over working conditions too. so, the concerns people have in this country now, generally, not just with organized labor, everyone, they are concerned about making sure they are going to a safe work environment. we are still living in a pandemic. i think some contracts are really about her conditions, something we have not seen in quite a bit.

david: what are you seeing on the participation front? what can the department of labor do about it? sec. walsh: we are not seeing the per dissipation rate we would like to see in the country. there are millions of jobs open. we need to get those failed. but the next is we have an unemployment rate of 4.6%. since president biden has been in office we have added five point its million jobs to the economy, a faster recovery than we originally predicted. we have to continue to move one step at a time. haidi: the u.s. secretary of labor marty walsh speaking to david westin. we will have another big guest tomorrow. don't miss our interview with raphael bostic amid talks. let's check the business flash headlines. ebs nominated colm kelleher to

succeed weber in april. weber had suggested the bank consider appointing a woman. deutsche bank tapped alexander wynaendts as its next chairman to help guide the lender as it emerges from a decade of restructuring and upheaval. the dutch insurance veteran is set to take his role in may. the bank also nominated a chief risk officer. activision blizzard ceo bobby code-6 -- code-6 --koic has left with the possibility of stepping down. activision blizzard is facing allegations that its frat house culture makes it a toxic place for women to work. coming up, japan's guest expect

you to -- expected stimulus package. this is bloomberg. this is elodia. she's a recording artist. 1 of 10 million people that comcast has connected to affordable internet in the last 10 years. and this is emmanuel, a future recording artist, and one of the millions of students we're connecting throughout the next 10. through projectup, comcast is committing $1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities.

vonnie: the federal reserve looks on course to consider a rapid drawdown of its bond buying program. several policymakers signaled the topic might be on the table when the fomc meets. the plan announced earlier this month slows qe at a pace to finish by mid 2022. >> the rapid improvement in the labor market and deteriorating inflation data have pushed me

towards favoring a faster pace of tapering, and more rapid removal of accommodations. vonnie: china's foreign exchange committee is urging banks to limit speculative currency trading. sources say the organization is advising lenders to improve risk management. we are told a proposal but sent to more than 50 banks that cover 90% of china's fx markets. china has raised its growth forecast on the back of the tourism revival. the economy is set to expand 1.2% this year, exceeding an earlier forecast. growth next year could hit 4%. thailand will be reopening next month. more than half of the population is fully inoculated and the daily infection rate is about 6.5 thousand. the japan and the u.s. will

reportedly make an announcement on oil reserves. a newspaper says the gap -- japanese government says it is considering tapping excess reserves, and move the biden administration is also waiting period the prime minister says they are reviewing measures to tackle high low prices. 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. shery: our next guest says he is watching the global inflation divergence from japan as the country introduces stimulus. we discuss the implications. always great having you with us. price pressures have not necessarily been an issue in japan for years, but what are the implications of another spending package? guest: basically, japan does not

have inflation, and the prime minister takes no chances. you have a record spending package with some good in new initiatives, not only where they'll be paychecks to certain parts of the population, boosting the purchasing power, but more importantly future investment that should raise the potential growth rate of japan. haidi: what does this new vision mean for japan? guest: it's interesting. the new vision is a political statement, everyone wants something new. the reality is, when you look at what he actually does, he is following the script laid out by the other prime minister which is big fiscal spending, together with big monetary accommodation

together with some structural policies. what is new is concrete investment initiatives, enticing japanese companies to build more factories in japan, that is a new thing. haidi: we have been talking about the hidden inflation costs when it comes to energy. we know oil prices have been putting pressure on some smaller businesses. is that a real concern given has suppressed growth has been with the various lockdowns and impact of the pandemic? jesper: you are absolutely right. there is cost push inflation or small and medium-size companies because of the rising input costs. the real topic for 2022 is about productivity. are you going to see restructuring? if you look at toshiba

announcing a big breakup plan to overcome cost pressures that are coming through. haidi: in 2008 when we saw surging oil prices, we had the japanese economy falling into a recession and consumer spending was so badly had. is there a way the stimulus can push through consumer sentiment? jesper: on consumer sentiment, there is only one thing that's going to work, which is increasing wages, increasing the feel-good factor. obviously this is when your real purchasing power goes down, you have a problem. you need to see nominal wages beginning to rise at a faster pace to get the feel-good factor coming through.

haidi: when it comes to a quicker than expected taper from the fed, how does that play out the boj? jesper: absolutely no impact. the bank of japan has stayed very firmly committed to the 2% inflation target. we are 100 miles away with inflation being at 0.1% in japan. for investors, the big theme of decoupling, yes the u.s. tapering, stepping on the brakes, while japan continues to be pedal to the metal, that divergence will give positive input sores for the japanese economy because it does make japan's products cheaper in the rest of the world, and as a result of that i expected exporters to be doing very well over the next six to 12 months.

nobody wants to make bold forecasts, but if indeed the federal reserve steps on the break in the u.s. interest rate curve steepen's further, i think 125, 130 on dollar-yen is something you can begin to forecast. haidi: always great having you with us. let's get you a look at how markets are taking in all of this. key inflation numbers including japan and southeast asia as modesty -- monetary policy decisions are out. it's a down day, sentiment being shaken by the revival of lockdowns and concerns about the virus. the nikkei down tends -- 6/10 of 1%, the kospi trading higher,

pretty much the only bright spot as we see sydney stocks off session lows but still down 6/10 of 1%. the energy space taking a hit. new zealand in rba decision week. leaving the broader asia-pacific msci index of one quarter of 1%. we are seeing haven demand when it comes to demand for australian bonds. coming up next, chinese health experts reviewing hong kong's covid-19 measures. we will get you the latest virus developments out of asia, next. this is bloomberg. ♪

shery: the head of the international olympic committee says he held a video call with the chinese tennis star. at the latest within a saga that is captured attention. let's crossover to our bloomberg china government reporter. this comes after a statement as well as a video with organizers

of the chinese tennis tournament. does this allay fears? reporter: the short answer is no, not really. it was a 30 minute call and she assured she was safe. while it does help a little bit, it doesn't really satisfy as much as issue free to come out and speak openly without being surrounded, without being spoken or through these videos that could be staged. that is the suspicion. as you said, a suspicious

reaction to the nature of these videos. shery: do we know if there is any repercussion for the vice premier who was accused of sexual assault? colum: nothing that we know so far. chinese state media has been silent. we have seen tweets from the global times editor, a lot of the external state media have been a nod to the case. i think the global times kept referring to the incident as the thing. very little direct acknowledgment of this issue, and even less or not at all consideration of what might be the implications. haidi: a lot of the doubt comes

to how china handled this. a lot of people say you don't just sit around talking about what date is tomorrow. what can china do to potentially convince the world she is safe, particularly as we go into the months leading up to the winter olympics? colum: the main thing people would be asking for is a live interview, preferably with a nonstate media television. we know in the past, there have been incidences where state media have aired confessions. by inviting in foreign media and having a direct interview, that would be the best day. -- the best way. another thing the chinese side could do is start to address this issue in official

situations. the foreign ministry has been sidestepping questions all of last week, it might be time for them to come out and acknowledge this has become an international issue. shery: turning to the latest virus developments, a hong kong delegation has arrived to review the city's covid-19 measures as part of its bid to resume quarantine free travel with the mainland. thailand has raised its growth forecast. let's get the latest from our senior editor. can we say the country has passed the worst of this? reporter: china appears to be

getting his fourth wave under control, and as you talk about, they are coming into hong kong having discussions about potentially opening the border between hong kong and china the issue is they want to make sure there is no danger to the chinese mainland. they want to make sure the virus control measures and hong kong are well laid out and contain. we do think that is happening, we are expecting some border crossing. haidi: chinese experts in hong kong ahead of the border opening. what is the risk? michelle: the risk for china and hong kong, more significant for hong kong. it's better for hong kong

businessmen to be able to access mainland china, that is why we want to see travel going back and forth in that particular direction. when you were not looking at the economic angle, it is the health angle. both are maintaining covid zero strategy. both have been effective at doing it. china is getting its fourth delta wave under control, hong kong is perhaps the only major place in the world that has never had a delta wave. if the virus manages to get widespread in either one of these places, it would be devastating. at this point, there does not seem to be much risk of that because both have done such a good job at containing the virus. shery: we have seen singapore easing those restrictions. will they be able to continue to do so? michelle: singapore has been

committed to moving slowly in reopening their economy, and we are seeing the progress of that. when you have such a high vaccination rate and protect your elderly and high-risk people, you do see less risk of severe illness and disease and death. the other thing that is important is singapore has not let go of its mitigation measures. they are only slowly allowing people to start going out and gathering together. five people eating together is only something that is just now happening. if the combination of those things and singapore has said they do not want to go backward, they only want to go forward. they have done it slowly and cautiously. at this week -- point we think it will continue to move forward with that. haidi: three opening in europe has been less cautious. michelle: that is what we're

seeing. we're seeing protests two years into this pandemic, they are now seeing skyrocketing cases and significant injuries and deaths because of coronavirus. the governments they know that what is driving this are unvaccinated people, they are landing in the hospital and dying. they are trying everything they can possibly do to get those people vaccinated. of course in many places, they do not want to take kindly to being told that they have to be vaccinated so that is why we are starting to see protests and pushback. haidi: our senior medical order. be sure to tune in to hear more from the days big newsmakers. in-depth analysis from the daybreak team broadcasting live

from hong kong. you can listen in via the app or bloombergradio.com. much more ahead, this is bloomberg. ♪

haidi: kkr has offered to buy a

company for $12 billion in what would be one of the largest telecom purchases ever by a private equity firm. a preliminary cash offer is 46% premium for friday's close. saudi aramco says it will continue to look for investment opportunities in india. in a statement --aramco was in line but the deal fell through on friday. aramco says it will keep looking for potential investors. [indiscernible] electric two wheelers in more than 1000 indian cities and towns. the softbank backed company received 100,000 orders a few

months ago. delivery has been delayed from october target. initially, test rights are open to those who purchased or reserved. shery: nfci decisions may reinforce a graduate shift in liquidity away from the u.s. according to some investors. joining us now is our china markets editor. tell us about these changes and how they reflect tensions. reporter: the msc i mentioned a week and a half ago they were going to switch and move into hong kong chairs. this comes a few months after they did the same thing with alibaba.

this is an interesting time. heightened tensions even between the recent chat with the u.s. and china, trying to build better political situations. there is still concerns over the future of money flows and where this is going to go, and china wants to bulk up its power in this area. this is exciting for these companies to see potential paths for inflows and ultimately open these companies up to mainland money. haidi: have had a string of positive news flow on the geopolitical front. does that mean we can see a turnaround on the mainland? reporter: interesting question.

we have seen a turnaround, if you have seen some of the recent news flow seems like the concerns are using. it's not clear whether there might be a new set of things. in terms of the tensions, it seems to have calmed down and that is looking bright. we have seen brokerages turn more bullish on chinese equities and chinese markets. shery: the latest on the china markets. for that bullishness, the global equity markets, you're talking about high valuations, record

monetary stimulus, money is out there. it's not surprising we are seeing global ipo's break the 2007 record. we had a number of spacs, initial public offerings being raised, even with six weeks to go for this year to end, about 2850 businesses and special-purpose acquisition companies have raised $600 billion in ipo's. haidi: the number one is an electric truck start up. they have raised $12 million in their new york listing. in asia it's china telecoms. there is some concern.

what happens when the wall of cash gets pushed back? shery: especially when some of these companies, there are some established companies. there are others that have not shown profits even once. those concerns will be top of mind going into next year when we could see the fed tapering, raising rates, what that will mean for public capital raising. coming up, we will discuss this. we will assess whether investor sentiment is improving for china stocks. william ma is with us from shanghai. don't miss a big interview tomorrow, we discussed inflation, the fed tapering timeline. haidi: that is it for daybreak

asia. we look at the start of trading as asian markets are flipping on virus and fed concerns. china open is next. this is bloomberg. ♪ every day in business brings something new.

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david: happy monday morning. welcome to bloomberg markets china open. counting down to the session. let's get to your top stories monday morning. the trading week across the region lifting moods, concerns about the fed tightening and the virus resurgence we are seeing