haidi: a very good morning. we are counting down to asia's major market open. shery: welcome to "daybreak asia ." president biden stays the course, tapping jerome powell for a second term as fed chair, while picking his deputy. we speak exclusively to the atlanta fed chief in a few minutes. we will ask raphael bostic about his inflation outlook.

also ahead, opec-plus warns the may taper supply increases if the u.s. and other nations release crude reserves. haidi: let's take a look at how we are setting up for the start of trading in sydney. this as asian investors wake up with probably some relief but it the continuity candidate president biden has picked to continue leadership at the fed. full steam ahead when it comes to the fed tightening with the rate hike, debt, and the acceleration of the tapering program. about .9% when it comes to trading in sydney here as we get that session underway. in new zealand we are seeing upside of about .5% going into rbnz decision week. the hike is already priced into markets. kospi futures looking very robust at 2.3% higher and s&p futures looking like a little more of a recovery after that

late selloff we saw. shery: let's discuss abide's pick -- biden's pick in more detail with kathleen hays. more hawkish, more dovish, or mom the same? -- more of the same? kathleen: i would say pretty much more of the same but it opens the door to some big questions. it is not a surprise that president biden ended up re-importing -- nominating jay powell to be reappointed to another four-year term. in so many ways he was just a logical choice. it's an important choice as there is inflation, the pandemic is nipping at the heels of the economy. one thing biden said was that jay powell is going to help keep the federal reserve and policy stable. let's listen. >> when our country was hedging jobs -- hemorrhaging jobs last year, jay's steady and decisive

leadership helped to stabilize markets and put our economy on track to a robust recovery. jay is a believer in the benefits of what economists call maximum employment. kathleen: he said more than one time that jay powell is the person to help make sure that jobs keep growing as the government tries to fight inflation. we are looking at lael brainard as well because she was in the vice chair seat. at the end it was a question of choosing her or jay powell. she was considered more dovish, more in step with progressives in the senate and the house. but let's look at what she will be doing. the fed vice chair is supposed to support with the chair says. when she speaks everyone will assume that is what jay powell is thinking too. she has had a background at the federal reserve, board of governors since 2014. the big question now is without the cloud of uncertainty hanging over it and his team at the fed, can he move to a more hawkish

stance in the fight against inflation? that is what investors want to know. haidi: kathleen hays there. don't miss that exclusive interview coming up with raphael bostic. we will be discussing all things related to the fed and monetary policy. opec-plus officially warning they are likely to respond to some of the world largest -- let's talk through this brewing fight with annmarie hordern. we have been washing -- watching the question for a while who the swing producer is in the market. do we see even if they are relieved that pricing might not change much? annmarie: we have already seen prices come off the highs. the white house has been verbally intervening in the markets, saying they have the ability to tap the fdr, the strategic petroleum reserve.

they are talking to consumers. and they may actually do it. that was enough to push brent below $80 a barrel recently. now enough to keep the lid on. a lot of this is priced in. what we have found out is the white house is considering potentially as soon as tomorrow, the president announced tapping into the spr. we also heard from indian officials as well, potentially japan. china is looking into it. it would not just be the u.s. alone and this would make more of an impact. the u.s. acting alongside major consumers after the fact that opec-plus snubbed them. not just the white house, the snubbed a number of capitals around the world were dealing with higher energy costs. shery: let's now get to vonnie quinn with the first word headlines. vonnie: thank you. the u.s. has issued a level four travel warning to germany, advising americans to avoid traveling there. it comes as germany travels with

its worst surge of covid cases so far. chancellor angela merkel says the nation's hospitals could be soon overwhelmed and is calling for tighter restrictions with the vaccination rates remaining below 70%. >> probably by the end of winter, almost everyone in germany, it might be cynical to say, will be either vaccinated, cured, or dead. but that really is the case. this is very possible with the extremely infectious delta variant. vonnie: the u.s. says trade with india is falling short of its significant potential. washington's envoy made the comment on her first visit to india as they seek to restart trade talks stalled before president biden took office. she says her talks will also focus on digital economies, services, health, and agriculture. china warned it will punish bit earlier -- businesses and donors

affording taiwan's independence after it fined forestar group. state media say several groups were fined for violating laws in relation's. the mainland affair's office said it undermined relations and risks stability. chinese financial regulators have reportedly told some banks to issue more loans to property firms for property develop. reuters cites two people in banking saying the aim is to ease liquidity trades. financial regulators told banks to ensure outstanding loans show growth in november compared to october. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, prices likely to decline from the fourth quarter of 2021 according to sk kim.

we will be speaking with him. next, our exclusive interview with the atlanta fed president raphael bostic. this is bloomberg. ♪ is is bloomberg. ♪

kathleen: we would like to welcome our listeners around the world now. president biden's decision to keep jay powell in place a second term signals continuity with the central bank's policies. it comes as the u.s. economy faces critical challenges including the highest inflation in decades. we're joined exclusively by raphael bostic, president of the federal reserve bank of atlanta. welcome back to bloomberg television. i just have to put on the table a couple things. number one, do you like to be called rafael? i want everyone to know that is

why i'm not can you president bostic. i want to start with the reappointment of jay powell. what it means to the fed's ability to execute policy. a lot of people are saying without the cloud of uncertainty hanging over the fed, without the possibility of some political pushback, depending on how aggressive they have to be in the fight against inflation, the fed now can really look at what is going ahead and move ahead more definitely. what do you think? raphael: first of all i want to say it is really good to see you again. i want to also say that this decision really does take some uncertainty out of the federal reserve as an issue. that is helpful for all of us. it means we will be able to spend 100% of our attention and focus on trying to discern what is happening in the economy.

i will also say i think the president made a fine choice. both chair powell and governor brainard are very experienced, polished and effective policymakers. they have both managed this institution through turbulent times and with a lot of uncertainty. i am looking forward if they are confirmed to working with them and continuing the good work that was done so far. kathleen: there are three seats open at the board of governors now, including the vice chair for financial supervision. are these appointments a chance for the federal reserve to create more diversity at the fed, more diversity at the board? raphael: i think any opportunity where there is an appointment has the potential to increase diversity. i do know that this is something that the administration has talked a lot about, is taking seriously. we will just have to see how it

turns out in terms of who gets nominated. kathleen: just last week you said that you yourself had not been contacted by the white house for any of these positions that might be open. now a few days later and with the big news under our belt, have you talked to anyone at the white house are close to the white house about perhaps considering one of these positions, and would you or will you consider it if you are? raphael: it is still true, i do not have any trips to washington on my calendar, so we don't have to worry about that. we will have to see in terms of if anything comes up and what the parameters are. we will make the decision at that point. all that stuff is out of my hands. i do not really worry or think about that so much. i have a lot of stuff i have to figure out in terms of how the economy is performing and where we should be thinking about appropriate policy lending over the next couple months. that is kind of where i spent

most of my time thinking. the other stuff will sort of work itself out as we move through the next couple weeks and months. kathleen: i want you on the record for one more thing. you and the boston fed, the minneapolis fed have just finished up 10 conferences on racism and the economy. you have looked at racism and banking financial services, etc. from that standpoint, it is important to fill that vice chair supervision of banks with somebody who understands firsthand what these problems are? raphael: well, first, i want to say the series has been great and if people have not seen it it is a real opportunity to understand some of the structural barriers that have prevented people from fully participating in the economy. i would encourage people to google the federal reserve. all of our sessions are on youtube. it has been an illuminating series. to your specific question, i

think the important thing is that whoever is in that role understands that capital markets and financial markets have had these challenges and barriers in the past and are sensitive to look out for them in terms of how we execute our regulatory policy and how banks feel about their practices moving forward. whether that needs to be someone who has actively discriminated against or not, that is an open question. i think the sensitivity and the awareness is something that will be important for the next person who holds that position to have. kathleen: i want to come back to this question of fed policy and this insistent inflation rise we are seeing. a few of your fed colleagues in the past week have said they are either certain that the fed needs to speed up the pace of the bond taper, or at least talk about it seriously. how about you? raphael: i think there are good arguments to be made that we really should be considering how fast we execute the taper. there is a lot of uncertainty in the market.

inflation is at a very high level. i think it is important. if we need to be moving interest rates that we get the taper out of the way first. a faster taper it would certainly give us more optionality as we move into 2022 and see where the data takes us. i definitely think it is appropriate for us to be talking about tapering, and being open to a faster one. we are going to see some more data between now and when we have to make that decision. those conversations will really guide us in having perspective on what the appropriate pace is and whether we need to move faster. kathleen: the next meeting is december 14, so you will have that data in hand. are you inclined to say, gee, you want to be talking about, and maybe even in favor of, finishing the taper, say, by the end of the first quarter until waiting until the end of the summer? raphael: that timing i would be

comfortable with even the way the data has come in recently. but we will have more data that comes in that gives us a sense of what is happening both in terms of job creation and in terms of inflation that will give me a sense of whether the volatility we have seen in labor market reports over the last couple of months are really real, and also whether the heightened inflation we have seen is likely to persist. my sense is on the inflation side the numbers are still going to come in strong. and if the employment numbers come in equally strong, the case will be much stronger for a faster taper, but we will have to see how it plays off. kathleen: in 2022, you have your dot in that part of the chart already. at the december meeting, all of you will be revising your forecast. you do it every three months. that is where you have a chance to change the dot plot. are you thinking of adding

another 2022 rate hike dot to the dot you have already got there? raphael: going into every sec mission where we do the dot plot, i try to be open to moving in both directions. certainly i am open for moving forward another rate increase if that is appropriate, but i am also open to the notion that we may have to push those things back depending on how things play out. i have been in the position of thinking a rate crease for 2022 was going to be appropriate for several months now, because given where my forecast has been through the pandemic, it not only has performed a lot stronger and has had much more resilience than i projected, which meant my initial perception of when we would be at a point of liftoff would be appropriate were much further out than they are right now. so, the economy continues to perform strong, and we will just have to see, as i talk with my

team in atlanta and get their various perspectives and input, as to where my dot plot will wind up. but as to what i will have in 2022 -- kathleen: so you see a strong economy. a lot of people do. we are well past recession. inflation is surging. and yet we still have the same kind of monetary policy, extraordinary stimulus, that was put in place back in march, april of last year. and add to that, record peacetime stimulus, another big fiscal package. doesn't it seem like maybe the stimulus question in terms of hiking rates is more cut and dry at this point? what is the concern about starting to hike rates and not overstimulating the economy, and taking away some of the liquidity in the market that is helping ultimately to fuel inflation? raphael: i think there are two

issues. the first one is we still have -- it's important as we think about all the dynamics around our policy and our economy that we keep in mind that covid is driving a lot of the dynamics that we see. i do not like using this word, i much prefer episodic. it's partly because we are in a covid episode, and there is still uncertainty. this is an international show. i don't have to tell the people who are watching that europe right now is going three covid lockdown that suggests that some of the -- might be less enforced than in the past. that's one reason i think it is appropriate for us to show some caution but move in a definitive way that suggests, that positions us to move our interest rate. so, i'm not -- this is not game over. we're not done with this episode

yet. until we are, it's still prudent to be as evidenced-based as possible. kathleen: supply chains. when you gave that famous speech about not saying the word transitory with a swear jar to put $1 in if you say it, you talked a lot about supply chains as one of the reasons you are getting a lot more worried about inflation. what do you see going on with the global supply constraints now? how long are they going to last? raphael: it is something that our business contacts across the southeast, the 6th district, all the time. we do some regional surveys, we do national surveys as well. in every instance, what they are telling us is they are not expecting the supply chain challenges to resolve before the summer of 2022, and some are even saying as long as 2023. so as long as that is the case, i think there is going to be continued increased inflationary pressure, and we are going to

have to be mindful about whether the extended nature of that pressure is going to result in business is changing their business models, and consumers changing how they think about participating in our economy. because ultimately, if this is an episodic situation, and businesses all do it that way, and consumers all view it that way so we do not see any lasting changes in behavior, then there's very little for us to worry about over the longer-term. but if heightened inflation is going on for a year, 1.5 years, there's the potential we might see those behavioral changes. that could mean all of our benchmarks are different in terms of what our baseline level of inflation should be and ultimately what maximum employment looks like. there is a lot to figure out. we are going to continue to reach out to business leaders and consumers across the country so that we can really know how they are thinking and

approaching things. kathleen: just a quick follow on this, because i want our audience to realize that your district is full of big ports. you have a lot of railroad trains going through there. give us one anecdotal evidence or story about the problem, how long it is persisting? raphael: well, we have some important ports all over. we have savanna, we have new orleans, and in almost all these cases what we are hearing is we have backups in terms of the container ships being unloaded. in some instances we have shortages of container ships. and the issue of getting containers into the marketplaces via trucks and trains has also been clogged up. one thing i have heard a lot is we have shortages of truckers. so even when containers get off the ship's, we have a hard time getting the goods to marketplace. and that is something that we

had that challenge before the crisis, but it's only been exacerbated given all the bottlenecks. kathleen: how do you respond to these arguments that you must read about, see tweeted, etc., that the fed is falling behind the curve? and part of what some people are saying is if you are too focused on social concerns, this is like arthur burns in the 1970's, you are going to set up the stage for a prolonged, persistent high inflation, just as that group of fed officials did back then. raphael: i do not think that is right right now. i also think that people should understand that we are paying attention to this and it is something that i am definitely concerned about on a daily basis. when you look at where the market is in terms of inflation, certainly it is high, but the thing we focus on that is really important is inflation expectation. in that area, while we have seen short run inflation expectation for consumers and businesses increase to historical levels, we have not seen the same level

of increase when it comes to longer run inflation expectations. which gives me confidence and comfort that business leaders and the public actually still have confidence that we have not completely lost track of things, and we will act as necessary to make sure that inflation does not become this spiral that becomes very difficult to control. i am not worried about it, but i am definitely looking at this very closely. kathleen: i want to ask you to give us a little more guidance on full employment, maximum employment. i think a lot of people are wondering, when we look at rate of talk, it could be around the corner before we know it. do you have to see the unemployment rate in the u.s. back to its pre-pandemic low before you would vote for rate lift off? would you have to see the black and hispanic on up limit rate back down to those pre-pandemic lows, or just see them moving in the right direction? raphael: for me, i think about this in more of a holistic

perspective. unemployment rates are certainly important. the number of jobs we have in the market and number of people employed is certainly important. and the labor force participation rate is also important. when i think about the labor market right now, the most definitive characterization i would use is in fluc. we know that for -- is in flux. we know that for many families, they have not settled down on how they will participate in the labor market. you think about how certain schools have been, you think about how devastated the childcare markets have been, and families that have children have a lot of uncertainty and have had a lot of uncertainty as to how they are going to manage things. so until those things get sorted out, it's hard to imagine that we are going to see the labor force picture get much clearer. i will say, though, that i'm optimistic that as we move further along, as more and more

people get vaccinated, as we start to see schools get much more settled in their perspective, that we will start to get clearer answers on this. and when we do come i think we will get a good sense of where maximum employment is. let me just say one other thing. i am not exactly confident or convinced that we have had exactly the numbers we have had pre-pandemic. that is a good target but there are some changes that are going on. retirements is one example. which suggests a little higher than that might still be appropriate. kathleen: you have helped us see things a lot more cleanly today. thank you so much. raphael bostic, atlanta fed president. thank you so much. raphael: always good to talk to you. shery: you can dive into any of the securities or bloomberg functions that we talk about, or become part of the conversation by sending us messages during the show. this is for bloomberg

subscribers only at tv . next, supply chain and inventory adjustments drive chip prices down, but only in the short-term. sk kim will discuss. this is bloomberg. ♪ s bl every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities.

haidi: this is daybreak-a-barrel." these are our top stories today. holiday season is becoming a make-or-break time for many retailers to recoup losses from the past year. as shipping costs rise, labor shortages continue and experts see financial troubles ahead for the sector. volkswagen is expecting chip shortages to persist beyond 2021 and says it's hard to predict because the situation changes every day. volvo will suspend production at

its belgian factory due to a lack of semiconductors. in california, the number of days containers are waiting to be picked up by trucks reached a record in october. the so-called dwell time was at 7.6 days on average at the u.s.' two largest ports. the white house has a plan to impose penalties for containers sitting on dock. shery: we're seeing concerns on the south commodity side of things. looking at wheat, the highest since 2012, in chicago, a strong demand and showers stalling australian harvest adding to supply worries. further rains expected in some of the production regions in the coming weeks which could lower quality, and compound the shortage of mill grade wheat whileurt north american and russian crops. bloomberg terminal users can

read more about those stories in our newsletter supply lines. our next guest expects bottlenecks to drive short-term adjustments for the global memory sector. let's bring in s.k. kim, executive director and analyst at daiwa capital markets. give us your assessment of the supply chain issues right now and what your top company picks are in this environment? s.k.: good morning. we believe the share price of global memory makers is bottoming out from the mid october so this is mostly driven by increase in disability of short-term adjustment. we believe that there's a sentiment that will continue and also the concern about

oversupply driven by the mid tier supply growth and fundamental demand. shery: which firms will benefit? s.k.: the benefits, the memory makers, such as -- electronics, compared with micro -- software components are behind so we see more upside. the opportunity of the company. shery: samsung could announce a u.s. ship plan location this week. what are you expecting on that front and how will that help samsung's bottom line? s.k.: i think that because of some -- it was expected but why

tsmc and intel already announced new investment plan in the u.s. samsung announcement has been delayed because of some of the issues related to location. we believe the company announce the plan, the details likely within this week. that would drive the positive sentiment on the company, confidence in the leading edge space business going forward. >> one of your other top picks is micron there. do you see the supply situation being more favorable? why? s.k.: what we learned from the recent earnings season from the global semiconductor and equipment maker, especially applied material, they guided

for discipline memory cap-ex next year. also the company hinted that the memory cap-ex can potential decline next year so and also we see the increases lead time for the delivery is a logistics issue as well as component issue will also limit supply growth which will drive more anticipation of tight supply from mid of next year. shery: there are scramblings to invest in infrastructure. does this have a meaningful impact on the outlook given how long-term these plans are? s.k.: actually, the recent announcement related to u.s. and

japan, it's more, i think it's because of the semiconductor is getting more important and along with the shortages, assuring that semiconductor production is necessary but top priority is like the automotive semiconductor as well as the leading edge foundry so in case of samsung, because of their dependency -- they already have planned in the u.s. they can maintain this relationship with u.s. key customers but japan is relatively -- they don't have customers. so it's kind of the tsmc capacity shipped to japan from taiwan for the japanese

customers. so we don't think any impact in terms of the foundry business. haidi: we really appreciate your time. let's get you a look at how we are trading here in the sidney session, about half an hour or so into trade, ahead of the broader asia open, in korea, upside in sydney, .1%. new zealand, a little bit of positivity. expectations baked in for the 25 basis point move and it is a question as to whether we get a more hawkish surprise given recent strength in the data. we are seeing kospi futures up a robust 2.34% last trade and s&p futures looking more positive

after a late-day selloff, as markers with the continuity choice at the helm of the fed perhaps looking at a quicker schedule and sooner than expected rate hike, as well. let's get you to bonny quinn who has headlines. >> president biden has decided to maintain continuity at the fed choosing to nominate jerome powell as fed chair. biden also wants brainard to occupy the vice chair. >> the institution really does take uncertainty out of the federal reserve as an issue and i think that's helpful for all of us. it means we will be able to spend 100% of our attention and focus on really trying to

discern what's happening in the economy. i also say that i think the president made a fine choice. vonnie: plans to raise output possible in response to coordinated release of reserves by oil producers. opec tells members the move is unjustified. america's latest covid-19 wave is taking a toll in some state's intensive care units with several parts of the country seeing outbreaks as bad as ever. in 15 states, patients with confirmed or suspected cases are taking up more i.c.u. beds than a year earlier. chinese financial regulators have reportedly told some banks to issue more loans to property

firms for project developments. reuters citing two saying the aim is to ease liquidity chains. global news on bloomberg quick take. i'm vonnie quinn, this is bloomberg. shery: coming up next, peter ors orzai calls the powell-brainard combination a dream team.

>> today, the economy is expanding at its fastest pace in many years, carrying the promise of return to maximum employment. >> getting inflation down at a time when people are focused on their jobs and how far their paychex will go. it means supporting a growing economy that includes everyone. >> we know that high inflation takes a toll on families, especially those less able to meet the higher costs of essentials like food, housing and transportation. if we use our tools to support

the economy and strong labor market and prevent higher inflation from becoming entrenched. >> i look forward to working with him in the months and years ahead to build a durable economy. >> making decisions with objectivity based on the best evidence and long-standing tradition of monetary independence. shery: we discussed the fed nominations with the c.e.o. of independence advisers. peter orzag and -- wolf have positive feedback on the powell-brainard ticket. >> we have two exceptional candidates. i'm excited to follow lael brainard's career but we're at a point in the economy where

stability is really important and moving the country together in a unified way so it will be excited to see the roll she'll e she'll continue to have on the feed. >> peter, similar question. your reaction powell renomination. it does look like we're still headed for a world of moderately higher rates but a lot of liquidity in the system. peter: from my perspective this is sort of the dream team. chair powell clearly is a force for stability and good sense in monetary policy. lael brainard is someone i've known over 30 years, extremely talented person. i think together you're going to see an even better alliance and combination. i just think the combination is very powerful. with regard to implications, we clearly have a raging debate about inflation that is going to

be front and center for both powell and brainard going forward and that's going to consume a lot of the debate in early 2022. >> peter, where do you stand? do you think we need to do more more quickly? do you think inflation is going to fade? the president has taken to talking about build back better being disinflationary. what stimulus do you think, if any, the u.s. economy needs right now? peter: i think we're at a moment where i would be in watchful waiting mode. there are people i respect who think we should be moving more aggressively towards fed tightening. i just think we're at such an unusual moment in the inflationary process and there is some indication at least that some of the supply chain dynamic that has been a big contributor to inflation not only in the united states but in the u.k. and in continental europe, that some of that may be at least

stabilizing possibly by early next year, improving and i think it would be worth waiting to see. i understand the counter argument and again, respect the people who are putting it forward. but from my own perspective, i'd like to see how this very unusual period of time plays out before reaching conclusions that we need to go hard towards monetary policy tightening. >> anne, in the meantime, i wonder if there's a world where from is uncertainty about higher inflation but still higher rates. what does that mean for an investment banker? anne: e: our clients face more opportunities and challenges than ever faced and that's why we're adding capabilities that most investment banks don't focus on. we've built a cybersecurity

team. these are issues that are confronting c.e.o.'s and boards and in a period where the market will go through transition in the next two years. i think the advice from both what what i've pa is building and the alliance with lazard will be an unbeatable pair for clients who have plenty of challenges to confront. haidi: southeast asia is becoming a prime destination for international investments both in renewables and ev's as nations raise their respectively climate ambitions. bringing in our transport analyst and power market analyst who both cover developments in the region. starting with you, caroline, what are the notable commitments we saw from southeast asian

countries in cop 26? >> we saw several southeast aron countries raise ambitions. thailand announced it aims for net zero by 2065. the potential to raise net zero to 2050. with these announcements, thailand, indonesia, vietnam and malaysia. half are discussing carbon neutrality or net zero emissions target but none are legally binding. we hope governments would reconsider to reinforce global commitments. >> what do we know about programs targeting coal and phasing out the internal combustion engine? >> at cop 26 -- singapore and

vietnam, projects in the mix. we have the second largest -- of projects in southeast asia and the announcement is a big step. the markets have pipeline for projects are indonesia and the philippines. these countries have come in but have stopped short of setting an end date to phase out coal projects. the other consumer fuel, commitments from the governments to phase out have been limited. cambodia is the only country that committed to phase out by 2040. >> which countries are leading

asia's renewable power option? >> vietnam has taken the lead in renewable energy adoption over the last few years driven by relatively attractive tariff schemes, which brought investments into these sectors. to give scale of how much has been built, vietnam's solar sector increased more than 100 fold over the last three years and we saw over three giga wind capacity commissioned in vietnam bringing it up to more than 17 times from 2018 levels and with vietnam's aggressive commitment to phasing out coal power plants, it recently announced 2050 zero target, we expect the renewable energy focus to grow within the country and vietnam to continue leading the solar and wind developments here in the region.

>> alan, in terms of countries leading e.v. adoption, what are we seeing? >> this is finally a motorcycle market and the countries leading with adoption in the two-wheel segment and passenger vehicle segment are different. passenger vehicle segment, thailand is currently the largest market for flex cars and s.u.v.'s where 7,500 hydrogen sold in the first half of 2021 but still 1.1% of all passenger vehicles sold in thailand in 2021. we still expect thailand to be the leading market for electric vehicles. singapore is another market seeing fast growth in sales, 3% of passenger cars sold in singapore in 2021 in the first nine months were electric and we

expect this to rise to over 50% by 2030. volume in singapore will be lower compared to indonesia and thailand. in the motorcycle segment, indonesia and vietnam, also the largest two-vehicle market in 2030 in our view. >> thank you. sticking with autos, chinese e.v. maker due to release third quarter results later. bloomberg intelligence expects a higher growth margin than the three months prior. our analysts are looking at a surge in sales that deliver scale benefits which help xpeng. the company has been aggressive with expansion plans and wants

to have 350 stores in operation by year-end, up from 200 stores in june. be sure to tune in to bloomberg radio to hear more from today's big newsmakers. get analysis from the day break team there, broadcasting live from our studio in hong kong. plenty more ahead. this is bloomberg.

>> a quick check of the latest headlines. bloomberg sources say -- talks to buy a minority stake in the wealth management unit of china everbreak bank. a deal could value the stake at $300 million. malaysian hospital group is considering a sale of its china unit that could value the chain at up to $1 billion. sources say ihh is in talks with potential advisers and that investors including -g participation. investment in a $12 billion australian gas project.

final investment decisions have been made for the development of the scarbrough gas build in western australia. bhp agreed in august to merge with woodaside to produce a top 10 global energy producer. zoom quarterly sales beat expectations signaling it remains in demand. sales jumped 35% in the previous quarter. investors have been watching whether zoom can sustain popularity as many in-person activities resume. >> markets across asia right now. we are seeing kiwi sales rebounding while the a.s.x. 200 is rebounding after sinking in the last session. we saw banks tumble but there is a cyclical rotation happening with the renomination of fed

chair powell. we had a few confidence numbers out of australia and south korea pointing upwards. we look at the main market drivers for asia with james leung and eddie chung coming up. this is bloomberg.

shery: welcome to daybreak: asia. haidi: korea has just opened for trade. her top stories this hour. president biden's stay the course tapping jerome powell for second term as fed chair while picking lael brainard as his deputy. asian stocks look set to extend declines. also ahead, opec-plus winning it

may taper supply increases if the u.s. and other nations release crude reserves. shery: we have a japan away on holidays but south korea coming online. we are seeing the korean yuan under pressure against the u.s. dollar. it has dropped to the five-week low. have a very strong u.s. dollar given the latest treasury yields rallying with fed chair powell being renominated. we are seeing communication and health care declines on the kospi. financials trying to give support to the broader markets. treasury yields also jumping. haidi: the dollar strength story playing out. the near 14 month high when it comes to the 14 month dollar.

just maintaining a little bit of a gain. on the cash session, seeing 3/10 a 1% gain. some pretty steep declines when it comes to information technology. but some gains across the energy sector. up over 2%. energy stocks trading in australia when we watch the -- whether opec-plus could react to any release of strategic reserves by the u.s.. countries like japan and india as well as involvement from china. we are seeing new zealand stocks up before tenths of 1% as we head to the rbnz decision this week. with that 25 basis points act in the markets. watching out for more hawkish -- from the market. next guest says the market is cornering the fed to speed up tapering.

always great to have you with us. you do see the reaction from markets. the continuity candidate means that jay powell is going to be able to act more decisively when it comes to reining in inflation. what are the risks for asset classes in asia? >> the risk is if inflation extends for a more prolonged period, then the market might corner the fed to raise rates earlier. the market has already discounted a faster than expected taper. and more aggressive rate hikes. normally at the very first few times, rate hike asian markets will see a pressure. if the market recognizes it is a healthy recovery in the u.s. and

incorporates are aber to consult slightly higher cost, then asian markets should stabilize thereafter. haidi: is inflation still the biggest concern? taking a look at companies you prefer, are you seeing many across the board looking like they can whether inflation quite well particularly in this part of the world where it has not been as bad? >> we looked at the management comments following the recent reporting season. a lot of them are seeing supply constraint pressures. certainly seeing higher input crisis. however, they were able to pass on some of the costs to consumers. basically because consumers

balance sheets are pretty healthy. still spending particularly in the u.s. but asia not as strong but still spending where they need to. we do think corporate's are able to weather this inflationary pressure a little while longer but not for too long. shery: inflation for consumers at least not a problem. they have their own issues right now. we may see some easing according to the pboc. what are the implications for assets? >> i think most people believe the pboc would not lunch blanket cuts -- would not launch link it cuts in interest rates. i think the best they would do is easing. the recent green lending tool.

i think it is a perfect tool as a start to give some lending to especially the green areas and help achieve decarbonization targets over the longer term. we are also seeing mortgage relaxations. and definitely probably we have seen the worst has passed in terms of the property sector. there is still volatility but seemingly a bit more interesting now. shery:shery: especially given we do not know what is happening with the tech sector. we seen perhaps the regulatory crackdown seems to ease a little bit. this chart on the bloomberg showing some sectors of chinese tech companies like those with high intellectual property is outperforming. are there any parts of the sector that you like right now? >> in particular, health, health

care sectors that employ a lot of technology. not as in focus in terms of the regulatory reset at some of the areas we quite liked. in general, we saw as a broad market we have been seeing negative revisions so far this year. we are seeing very early signs the broad market starting to trough. some of the tech companies seeing very early signs of earnings revisions upwards. i think we are maybe not too far away from a bottoming out of the market. for our portfolios, we are almost ready to dip into the markets within the next one to two months.

haidi: that is very much a tone of caution. let me get your views on the other big risk for sentiment, which is the supply chain woes. this is ours question of the day. why are we seeing a little bit of alleviation improvement in some supply chain measures easing? this is pointing to things like producer prices in the u.s. not climbing as fast as they were. also seeing some chip supplies stabilize. shipping costs are coming down. that is a clear indicator. is this a suggestion some of the inflation pressures are passed there? does this bode for a better outlook perhaps then markets are expecting for companies? >> that is our thinking right now. currently, prices should extend through the first half. our view is prices should start to soften in the second half. basically because the companies

don't want to produce. it is the don't get enough materials and inputs. whether that is upstream or downstream, as soon as your first bulk of input is available, companies start to ramp up production -- to ramp up production. you're selling at a much higher price today. there is also high demand that will always be there. my view is inflation will moderate as long as there is the first sign of input. shery: it was great having you on from bearings asset management with his views on the markets. let's get to vonnie quinn with the first word headlines. vonnie: the u.s. state department has issued a level four travel warning to germany advising america to avoid traveling.

germany grapples with its worst surge of kobe cases so far. angela merkel says the nation's hospitals could soon be overwhelmed and is calling for tighter restrictions with vaccination rates remaining so -- remaining below 70%. >> probably by the end of winter, almost everyone in germany, it might be cynical to say, why there be vaccinated, cured or dead. that really is the case. this is very possible with the extremely infectious delta variant. vonnie: america's latest covid-19 wave is taking its toll on some states and tense of care units. some parts of the country seeing outbreaks as bad as ever. government data shows any 15 states, patients with confirmed or suspended cases are taking up more icu beds than a year earlier. colorado, minnesota and michigan have more than a third of icu beds occupied by covid patients. china has warned it will punish businesses and political boehner

-- put up a taiwan's independence after it find taiwanese conglomerate for eastern group. devil subsidiaries were fined for violating laws and regulations. when asked about the case, the thailand -- the taiwan mainland affairs say backers undermined, frustrate risks. chinese regulators have reportedly told some banks to issue more loans. reuters cites two people in banking saying the aim of the directive is to ease liquidity strains. the report says financial regulators told banks to ensure outstanding loans to project development show growth in november compared with october. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, discussing the m currencies best position for a potential rate hike.

id speaks with us. coming up next, the atlanta fed president tells us there are good arguments to be made for a faster taper. we get more from that exclusive interview next. this is bloomberg. ♪

>> this is a good team at the fed. this >> is sort of the dream team. i think this is a >> don't rock the boat move. >> they certainly will not be any conflict on monetary policy. >> this is the central case the markets expected. >> to not reappoint jay powell would have been quite negative for the markets. >> the announcement is going to give the market more confidence to move ahead for next year. >> it is not my expectation we will get a faster taper. >> we still have the fed on wait and see.

>> they stick with the current pace and then hike once you get to the end of that. >> we are at a point in the economy where stability is important. >> total continuity. >> continuity is a very good thing to have at the central bank and that is what we are going to have some of our guests -- what we are going to have. haidi: some of our guests' immediate reactions. >> i think there are good arguments to be made we should be considering health as to execute the taper. there is a lot of uncertainty in the market. inflation is at a very high level. i think it is important if we need to be moving interest rates that we get the taper out of the way first. a faster taper would give us more optionality as we move into 2022 and see where the data takes us. i definitely think it is

appropriate for us to be talking about the pace of tapering and being open to a faster one. we will see more data between now and when we have to have those conversations. that will guide us in having perspective on what the appropriate pace is and whether we need to move faster. >> december 14, 15th. you will have that data in hand. are you inclined to say, you want to be talking about and may be talking about and maybe in favor of finishing the taper i the end of the first quarter instead of waiting until the end of the summer? >> that timing i would be comfortable with given the way the data has come in recently. we will have more data that comes in that gives us a sense of what is happening both in terms of job creation and inflation that will give me a sense of whether the volatility we have seen over the last

couple of months are really real and also whether the heightened inflation we have seen is likely to assist. my sense is on the inflation side, the numbers are still going to come in strong. if the employment numbers come in equally strong, i think the case would be much stronger for a faster taper. we will have to see the way that plays out. >> you have your dot in that part of the chart already. at the december meeting, all of you will be revising your forecast. you do it every three months and that is where you have a chance to change your dot plots. are you thinking about adding another 2022 rate hike dot to the dot you already have? >> going into every sc commission where we do the dot plot i tried to be open to moving in both directions. another red increase -- rate

increase if that is appropriate. we may have to push these things back depending on how things play out. i've been in the position of thinking our rate increase in 2022 for lift off is going to be appropriate for several months now because my forecasts have not only performed a lot stronger and been more resilient than i have projected which meant that my initial conceptions of when we will be at a point when a liftoff would be appropriate are much further out. the economy continues to perform strong purity will have to see as i talk with my team in atlanta and get their various perspectives and input as to where my dot plots will wind up. we will have to see shery:. the atlanta fed president. -- we will have to see where that goes.

shery: the atlanta fed president. what is this hesitation about a rates left off? >> it is interesting because he definitely sees the need to start making it possible to lift off sooner. he says it is a good idea to speed up the taper. the conventional thinking has been described as finish by june. others have said they want to start talking about speeding up the taper. people are saying maybe finish it by march. a bit that would have interested me in speaking with him is that he was first of all hesitant about covid. he said we don't know it is going to -- what we don't know -- he doesn't know what is going to happen with covid. that is one big uncertainty. i asked him also about this question of for rate liftoff, for maximum employment, what do we have to see on unemployment?

do we have to see it back to its pre-pandemic lows? would we have to see black and hispanic unemployment back to their pre-pandemic lows or do they have to look like they are doing well? he said they don't have to get quite that good. a lot of people have retired. there is a lot of uncertainty. they did not make the line in the sand metric a lot of people have been wondering about. make some progress. make sure you are moving in the right direction but maybe you don't have to be quite to the pre-pandemic levels. haidi: you had to ask him about jay powell on a day like today. what does he think the implications are? >> when you ask a policymaker, when you ask an official like what does this mean for the fed, you expect them to beat around the bush. i don't think he did because when i asked him about the uncertainty and if this would open the door to the fed being more aggressive on fighting inflation, he said there has been a certain amount of uncertainty that has gone and now they can focus exactly on

what they are doing. want to they need to do? how do they need to approach? giving all as us -- giving all of us as sense that there has been something hanging over the fed and that is gone now. also i think it is interesting he has not been approached for potentially filling the fed vice chair making supervision. he said i have the feeling that maybe he is leaving the door open haidi: haidi: in case they do pick kathleen hays. great conversation. let's take a look at opec-plus members warning they could -- plans if the u.s. and other nations plan to have oil stockpiles. our energy and commodities editor david stringer. what kind of response do we expect to see? this is going to the core of who is a producer. does that mean we do not see much of an impact on supply and demand?

>> good. the opec plus companies have debate back on president joe biden and saying if the u.s. goes ahead with the plans to release reserves from their strategic stockpile, i the o.a.t.'s -- are the opec-plus members willing to reconsider adding more production? they're supposed to be looking at options to increase volume when they meet next week. that is now back under review. the scenario we are in is you are almost back to the price war we saw in 2020. we are seeing geopolitics is push and pull between consumers and producers at the heart of the direction for oil prices. shery: so what does this mean for asian economies? >> you know, for asia, what we

know and what we understand from officials briefed on the u.s. plan is that china, india japan, south korea, all-important oil consumers, that they will announce plans to release from their strategic reserves in tandem with the u.s.. what we should see is dependent on the response from opec, some alleviation in high oil prices. we should see prices of fuel come down for drivers and businesses. as we have been discussing, a lot of that is going to depend on, what is the response from the producer nations? they say an increase is not justified at this moment. consumers look to put more material into the market. shery: our energy and commodities editor. we have plenty more to come on daybreak: asia. this is bloomberg. ♪

shery: here's a quick check of the latest headlines. approved investment of a $12 billion australian gas project. woodside says final investment decisions have been made for development of the field of western australia and expansion of the onshore processing facility. php agreed in august to merge its oil and gas business to create a top 10 global energy producer. bloomberg sources say -- in talks to buy a minority stake in the both management suite of china everbright bank. holding discussions with potential investors including the u.s. private equity firm for a deal that could value the stake at 300 to $400 million. a transaction could value both management and as much as to billion dollars.

a malaysian hospital group is said to be considering a sale of its china unit. the deal could value as a hospital chain on up to a billion dollars. sources say they are in talks with adventure -- with potential advisors and investors are weighing participation in the sale. coming up next, we will talk asian effects with eddie chang and get his views on the impact of a strong dollar and rising treasury yield. we have the dollar jumping your a 14 month high with treasury yields jumping on the renomination of chair powell. you can get a round up on the stories you need to know in today's edition of daybreak. bloomberg subscribers go to dayb under terminal. you can customize your settings so you only get the industries -- news on the industries and assets you care about. this is bloomberg. ♪

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>> i definitely think it is appropriate for us to be talking about the pace of tapering and being open to a faster one. we're going to see more data between now and when we have to make that decision or have those conversations. that will guide us in having a perspective on what the appropriate pace is. shery: that was the atlanta fed president. a strong dollar and higher treasury yield steamrolled almost everything in the developing world this year. the emerging market fx index has

dipped to an 18 month low. our next guest expects the dollar to say supportive -- to stay supportive. it is great to have you with us. how much can central bank tightening around the world especially in an emerging market economy help offset some of the dollar strength coming from the u.s. tightening? >> i think we are looking at a cross of e.m. asia. e.m. asia is much better positioned in emerging markets. on the of tightening, there is room for emerging markets to basically lag a bit behind. i think at this point in time even if we see a stronger dollar, central banks are a more comfortable with the fact the currencies are not going to be as strong as before. that can be positive in terms of how they see their exports especially for the export oriented economies.

one big difference would be the cny given that from that perspective, the cny currency is strengthening against the dollar. that to a certain extent does help provide some offset the dollar strength for dollar asian currencies. shery: the chinese yuan shows a six year high against the u.s. dollar. we are seeing signs the pboc may consider easing a little bit cared will this have an impact on the yuan? >> if we look at the q3 monetary policy report that came out friday, it did mention they wanted to do more any terms of window guidance for the currency. to me, it sounds like they're trying to warn about the risk of the currency becoming too one sided. if you look at where the cny is, the trade value is very high. if we look at the gap, it is not excessively big. that suggests to my view the market is not one-sided.

what i would be a watching is watching the daily cny fixing. if the cny does become too one-sided, with the pboc does like to do is they will start implementing the countercyclical factor in the fixing. they are not really doing that yet. that really suggests there -- they are relatively comfortable but they are hedging their bets and trying to warn markets the cny is strong but do not get to ahead of yourself. in our view, we think the cny index states elevates given the stronger dollar. the key for that is that will ensure the dollar cny stays relatively flat, relatively stable. that does provide the anchor for asian currencies. haidi: you sound like you are describing this as a very successful effort at both communication and also guidance for market expectations. is that why we are seeing

markets feel sanguine about the yuan at the moment? >> i think there are also other factors that if we look at the performance of the yuan, it has stood out this year. we were talking about the cny index at a higher level. on a year-to-date basis, the yuan is the strongest currency in asia. if you look at the mind of investors, there are fundamental reasons why the cny should be strong. the basic balance is quite high. if we look at the carry in volatility, the cny has the best characteristics within asia. there are fundamental reasons supporting the cny. if we look at a lot of investors , we talked to a lot of investors as well, what they are saying is the dollar china is a bit below 6.4. they are a bit wary. given we are seeing the pboc speaking up, that in their minds as another signal they are quite

cautious in terms of making sure they do not become too overweight. haidi: if we see a more aggressive effort to rein in transit -- what are the beneficiaries and would've the currencies at risk in emerging asia? >> right now, what we are seeing is after the renomination, the dollar is strengthening. market expectations of inflation are edging a bit lower. if we look at the breakeven, nominal yields are a bit higher. real yields are hitting higher. the dollar, higher. for us and dollar asia, it really depends. what i will be watching, the economy which is tied to global growth, if the fed is hiking in a growth scenario, the north asian currencies still have potential to do better up the likes of taiwan, korea, they do

have potential to offset the dollar rate hike. in an environment where it is a hawkish fed hiking, i think there is certainly some value in other parts of asean. the dollar also stands to a certain extent. some of the high-yield or's will stand to lose. what i would highlight is if we look at a lot of asean currency performance, asean has underperformed. shery: it was great to catch up. we do have breaking news. we are hearing samsung will choose tyler, texas for its $17 billion chipmaking plant according to the dow jones. we had heard news taylor, texas was one of the locations samsung was considering for the new plant after offering incentives.

this as we heard that the vice chairman had a trip to the u.s. and canada. he met with white house officials to discuss ways to resolve the global chip shortages and incentives to be offered to samsung if it builds a plant in the u.s. we are seeing breaking news out of the dow jones saying samsung will be choosing taylor, texas for its $17 billion chipmaking plant as we continue to see these chip shortages globally affect carmakers and other companies. plenty more to come on daybreak. this is bloomberg. ♪

vonnie: this is daybreak: asia. president biden has decided to maintain continuity at the fed choosing to nominate jerome powell for another four year term. he is expected to win confirmation. biden also once governor brainard appointed to vice. she could face opposition from senate republicans. >> this decision does take some uncertainty out of the federal reserve as an issue. i think that is helpful for all of us. it means we will be able to

spend 100% of our attention and focus on trying to discern what is happening in the economy. i will also say i think the president made a fine choice. opec shery: plus has waned it may -- shery: opec-plus has waned it may reconsider plans to raise out what. president biden is said to be planning to announce as soon as tuesday the u.s. will tap it stockpiles likely in concert with china, india, japan and south korea. opec-plus members say the move is unjustified. the u.s. says trade with india is falling short of it significant potential. washington's envoy made the comment on her first visit to india as the two countries seek to restart trade talks. her talks in new delhi will also focus on growing trade and digital economies, services, health and agriculture. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. vonnie quinn.

this is bloomberg. haidi: china evergrande shares worth almost a billion dollars have appeared in the hong kong clearing system. it is a sign the founder may be pledging part of his large stake as collateral for loans. let's cross over to hong kong. our chief north asian correspondent is there. >> it is interesting timing because we are getting signals dating back to the last week including from the quarterly monetary report from the pboc credit conditions, bank lending restrictions are perhaps easing for the troubled property sector in recent weeks. that is why we are seeing evergrande shares of worth upwards of -- seeing shares of evergrande with the clearing system in hong kong. the central clearing and settlement system in hong kong. if we look back in october,

there was a similar pledge of shares in the account of 500 million shares and that coincided with a pledge by the founder of evergrande of the same amount. we are extrapolating and thinking that perhaps this is as well another collateral for bank loans at a time when bank lending to the property sector is starting to ease. we also know other troubled founders and chairman of developers that are facing liquidity problems have been pledging their own money toward alleviating the liquidity and cash crunch either by order of beijing authorities or simply for survival since other avenues of fundraising have been limited.

shery: is that the narrative we also solve with a large jump in shares of evergrande new energy vehicle? >> obviously evergrande new energy vehicle needs financing if they are going to get those cars back up in production meeting they're already delayed production schedule. they knew that revenue coming in if they are going to make it a viable entity. they have not been able to sell a stake in this unit so they are going to go ahead with it. they have sold another 900 million shares at a 15% discount raising 2.7 billion hong kong dollars. it is signaling -- it is another lifeline for this in the that has no guarantee it is necessarily going to survive. the founder obviously is pinning hopes that he can go beyond -- he has built this empire far

beyond those unfinished flights across china. he wants to move into ev significantly and that can be done but selling the stake at a significant discount. surprisingly, if you look at the intraday chart yesterday of new energy vehicle shares, they were trading lower again. most of the day until the very last hour of trading. they showed up about 11% in hong kong trade. we will have to see this morning if they can continue that momentum. shery: we are just half an hour away from that open. china says it will punish businesses and political donors who support taiwan's independence after hitting taipei based conglomerate far eastern group with a fine. let's get the story from debbie wu. what actions are chinese authorities taking against far eastern group? >> it was known that china is

going to fine before eastern group about ¥19 million concerning environmental protection. after the announcement, a spokesperson told reporters china will not allow those with ties to taiwan politicians to make money in china. china will punish businesses and entities support with taiwanese independence supporters. according to a local report, the far eastern group -- haidi: what is the broader implication of this for other companies that may be asked -- may be affected as well?

>> this is a major development following china sanctioning three key politicians in early november. back then, china would say it would penalize politicians and individuals who support taiwan independence as well as businesses associated. the implication could be huge. taiwanese companies -- many taiwanese companies operate manufacturing operations in china. notably the apple supply chain. we will see what happens. this could be a big story that investors need to watch out for. haidi: who will be watching that one. also watching in the markets

going into the start of trade in china. we are hearing the tightening approvals of quantitative hedge funds and the latest sign officials are concerned about the potential market implications of volatility as well as social implications of trading driven by algorithms after what has been a year of huge as expansion in the area. the asset management association of china, which is the regulator in charge of approving funds closed a chain in recent weeks. that is according to people with knowledge of the matter saying applications head using token amounts to launch new offerings. we have seen huge turnover interest when it comes to these funds and we saw as early as in september when regulators in china really casting some doubt over the sustainability of these funds saying the high-frequency trading could create issues such

as increased volatility and unfairness as it enhances pricing and efficiency. we are hearing while the regular channel for approvals remain open, it involves closer inspection and that does suggest a slowdown in the launches of these funds after a fivefold increase in assets to $219 billion. we have seen fresh highs when it comes to the turnover in these funds. we have been hearing authorities in recent months have been holding discussions with these various high-profile funds. some of them have closed to new funding as well. shery: we also have an alert on the bloomberg. the former south korean president has died. he was fifth president in south korea. he was an unelected military leader. a controversial figure because of his role in the massacre.

we are hearing that the former south korean president has died. haidi: coming up next, as china looks to stem international fears over its tennis star, it is also blocking references to the scandal on social media and television. we will get you the details next. this is bloomberg. ♪

>> today, the economy is expanding at its fastest pace in many years carrying the promise of a return to maximum employment. >> am committed to putting working americans at the center of my work with the federal reserve. this means getting inflation down at a time when people are focused on their jobs and how far their paychecks will go. it means supporting a growing economy that includes everyone. >> we know high inflation takes a toll on families especially those less able to meet the higher costs of essentials like food, housing and transportation. we will use our tools both to support the economy and to prevent higher inflation from becoming entrenched. >> i look forward to working with him in the months and years ahead to build a durable recovery. >> i'm committed to making those decisions with objectivity and integrity based on the best available evidence and the long-standing tradition of

monetary policy independence. shery: fed chairman jerome powell and governor little bernard speaking about their focus points going forward. those pix affected the markets. banks jumping in the u.s. session. a similar picture across markets in asia with the asx 200 being led higher by financials and energy. same picture with the cost be where we have eggs higher at the moment. with tech and communication stocks higher, we are down about 3/10 of 1%. rebounding from the losses we saw in the previous session. here's a quick check of the latest headlines. a group says it has paid investors for products do in tober and earlier this month. it says offshore bonds are said to have higher risers. they have yet to pay back some

of the $88 million in interest it owes on dollar bonds that are due november 11. american express has discontinued a service known as premium wire and fired workers over misconduct. amex says an internal investigation found sales staff inappropriately marketed the product to customers. that followed a wall street journal approach -- journal reported that said it was paged as a way of reducing tax bills. it has since taken steps to retrain staff. bain capital has agreed to a $17 billion deal to buy athena health. that is a substantial jump from its $5.7 billion price tag in 2017. athena health valuation has been boosted by demand for ehealth during the pandemic. the sale is expected to be completed by the fourth quarter of 2022.

haidi: as the chinese government goes to great lengths to try to reassure the world tennis star peng shuai is safe within china, a media blackout is leaving the public unaware of the scandal surrounding her allegations. the ioc is also getting backlash after its call with peng, which critics say was staged. let's bring in our china editor. this is not surprising. this is the chinese playbook when it comes to dealing with these things. >> that is right. the media blackout has been about three weeks as she posted her sap that is that her essay. that is standard. what is surprising is the international cries the case has crated. you have the white house, the u.n. and grades like serena williams asking where she is. for a long time, they did not respond to that.

they repeatedly said they were not aware of the case. what we did see over the weekend was chinese propaganda mobilized to finally respond to the crisis. what was particularly notable was the messaging was only on western social media platforms. a reporter showing her apparently happy at home. what was notable. he did not mention the crisis whatsoever. shery: is this a reaction from beijing a normal occurrence or are they being more aggressive because of the overseas firestorm yucca >> -- firestorm?

>> it is highly unusual for anyone to speak of the private lives of retired officials. you would expect china to react like this. speaking of affairs is not allowed within the comet's party. they do not have a language to confront this type of issue. it almost touches on the me to issue promote is something china has not really dealt with very well. you have the olympics coming up and xi jinping is facing a third term next year. it is coming at an unwelcome time for the party. shery: our greater china editor jenny marsh with the latest. we will assess what jay powell's renomination to the fed means for central bankers across asia. the morgan stanley chief asian economist joins us next. haidi: that is it for daybreak a markets coverage continues we were look ahead to the start of

trading -- coverage continues. stay with us for bloomberg markets china this is bloomberg. -- bloomberg markets china open. this is bloomberg. ♪

>> welcome to bloomberg markets china open. we are coming down to the open of trade under the chinese mainland and hong kong. treasury yields jump as president biden taps jay powell for a second term as fed chair with lyle brainard as his deputy. china's troubled developers in the spotlight. a billion dollars in evergrande sharese