haidi: we are counting down to asia's major market open. >> welcome to daybreak asia. haidi: dr. fauci says he does not expect locked out in the u.s. to cause a spike in covid cases. asia-pacific airlines director general.

president biden's economic agenda takes a blow as a key senator rejects his $2 trillion spending bill. >> fairly busy knows flow -- news flow. we are coming off of steep losses in friday, we are stabilizing and that is a good thing. everything coming in the next few days have sure we are ok in australia. peters are coming online. we have our mixed futures and tenure futures, we will get that up if we can on the back of this report is -- of this repricing. pricing is coming in march of 2022. it is very quick, let us have a check on the fx market.

keep in mind we are coming off of what, seven straight weeks? against the turkish currency as we can see at the moment. we are continuing to see the trade is one-sided. haidi: as we get closer to the holidays this is the unwanted risk from the virus omicron. also, delta cases are starting to spike. new york is getting cramped when it comes to testing availability. dr. fauci says lockdowns are not going to be necessary. the netherlands are going into hard lockdowns. there are questions on how that will affect you next year. a lot of money managers are betting on the reopening trade. david: absolutely, whether that narrative is consistent across

the world, if it is not consistent, it is hard to make a call in the reopening trade. i was browsing through twitter, some people say it feels like march of 2020. when you look at china for example, over the weekend, they are finding that it was a two cases of omicron. low crime rate due out today, will be -- low prime rate, will the banking system follow-through in case of the policy trough that authorities signal. do we get a lower prime rate in 2.5 hours from now? haidi: we are just a few days away from the holidays, it is a lot for investors to contest with. that sharp rejection of president biden's economic agenda from senator joe manchin, the top medical advisor says

lockdowns in the u.s. are not necessary. hospital systems will be stressed. dr. fauci: the thing that continues to be troublesome to my health colleagues is the fact we have about 50 million people in the country you are eligible to be vaccinated who are not vaccinated -- who are illegible to be vaccinated and who are not eligilble to be vaccinated who are not vaccinated. it is a strain on the hospital system. haidi: i will start with the virus. we are seeing record virus spread globally. a lot of fairly high-profile positive cases. some people feel like it feels like march 2020. does it feel like we are at a turning point?

>> it does feel like a bit of a turning point, a little bit like 2020 in new york. i can say in my own little circle, i have had half a dozen or more people who i know that had breakthrough cases. i think a couple -- everyone is aware that this is different from 2020. when we were staring into the abyss of the unknown. we know things pretty well and people are not getting quite as sick. it is not feel quite as serious. it does feel like there is going to be enormous disruption. when you have cases of omicron which may or may not be milder, you still close businesses, people stay home from work. ultimately, people are hospitalized. i would like to say one more thing, it is difficult to separate out the delta wave from

the omicron wave. there is a lot of delta in the u.s. right now. it is causing stress on hospitals. omicron falls on top of it. there's this sense of unease. it is hitting a high point. david: adding to this wall of worry we are running into the short-term. we heard from joe manchin a fairly shocking projection of the -- rejection. >> if i cannot and explain it to the people of west virginia, i can offer for it. i cannot bow to continue with this piece of legislation -- vote to continue with this piece of legislation. this is a no. david: how big of a hurdle is this in terms of the economic agenda? >> this is a pretty big hurdle.

democrats did delight negotiations until after the holidays, knowing that they were not able to meet the christmas deadline. they were hopeful they were able to get something to come together. in january, that looks highly unlikely now. it is unlikely if mansion is using this as a negotiating -- joe manchin is using this as a negotiation tactic. democrats hope it is the first, that they can salvage some deal. picking off some of the things that are so important to democrats like climate spending. to see if they can cobble something together. biden's agenda is imperiled here. something may not pass. haidi: does it take the wind out of the sales for u.s. equities? >> it was not expected in this

late of the year. it is something that will probably be priced in, that there was going to be a deal. joe manchin was getting closer to agreeing. the fact it is the week before christmas may have an impact because many traders have backed up already. -- packed up already. people are going to see this as a negative short-term outcome. it is one to be a while before the white house can resolve this. -- it is going to be a wild before the white house can resolve this. david: confirm what we know policymakers might help with sentiment.

we have talked about the wall of worry out there for investors. >> i think it is quite substantial, if anything. look at the low prime rate, it would need to be about 20 basis points reduction for us to get excited. david: sentiments are quite high. we will talk to you later. talking us through their, our editor, our tax reporter, and our live team. let us get it over to the first word headlines. >> china's pandemic passport comes as omicron crisis continues to rise on the mainland. two new recorded cases of the variant.

infections have also been reported in two provinces. u.k. foreign secretary will handle the country's post-brexit negotiations with the eu after david with the role in a strongly worded resignation letter, he said he was unhappy with conservative party policy. this strengthens her position to succeed boris johnson as prime minister. hong kong held its first major election since the city is overhauled, before polls close compared to a record turnout of the da percent back in 2016. results are expected later today. a revamp of the electoral system last year and ensure that only patriots could run for office. it wiped out the city's pro-democracy camp. the death toll in -- has gone

up. it has rise considerably with extensive flooding and landslide. emergency powers have been contacted to secure food and water. global news 24 hours a day, on-air and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. david: the virus here is proving it is a greater challenge for airlines. already an association of asian-pacific airlines, talking about about the industry moving into next year. we have recent monetary policy decisions, we have a guest

telling us about her take and outlook. this is bloomberg.

♪ >> the economy is so much stronger and closer to full employment. inflation is running well above target. >> inflation is expected to remain elevated in the near term but should ease in the course of next year. >> more consistent cost pressures is a concern to us. >> it is unlikely we will raise interest rates in the year 2022. >> you are phasing out purchases more rapidly, the economy no longer needs increasing amounts of policy support. >> there are many factors

determining the outlook for prices, looking at the current situation, we have no intended to proceed with policy normalization by central banks in the u.s. or eu. haidi: commenting on policy amid inflation and virus risk. you may be winding down but there is time to look at the low prime rate today. because are going for the slowdown in growth -- calls are calling for the slowdown in growth. that theme of monetary policy divergence will be key going into 2022 as the fed pivots. let us bring in our next guest, increasing rate to liquidy and it is becoming more relevant with omicron affecting the region more than the west. we have the chief asia-pacific

economist, it is not just omicron, we have a whole lot of delta circulating when it comes to these virus cases as well. does that add in the risk? >> absolutely. the risk is very high now because of omicron. we know that the world is getting into lockdown out of the question is selective. you may be a question -- a country with a lot of inflation and poor growth and you need to follow the fed. the american economy. it is less true for asia. inflation in asia [indiscernible] that is the politics. haidi: what we expect from this?

>> the pboc has surprised some because i believe from many there is more to come. the policies were not relevant because there were so many things that could be done on the fiscal tightening. they cut for very important reasons. we do have in china, a humongous sector. the real estate sector. it is to create the quiddity to avoid -- the liquidity. it is an issue of getting into additional leverage compared to

gdp ratio. it will continue with liquidity injection, rather than a rate cut. if they cut rates, the situation they see is worse than the situation i see. this could happen because the numbers as we saw last week are really good. let us see. i hope that they will not cut rates. that will scare me quite a lot, actually. david: last week we spoke with someone and they flag the issue of the transmission effect of monetary policy. we want to play the soundbite out. >> over time, i think in order to stabilize the economy you will need a stabilization in property sales. you will need a stabilization in

credit growth. both as though things will require monetary easing to gain momentum. we are watching the next adjustments on the next adjustments and the 15th. david: you know if these things work, do they need to move now and fairly quickly? to get that where that needs to be? >> i think they can do much more. rates are not as important as the transmission in china. there are many other things that are happening that are more valuable. this is the spread. [indiscernible] the key that i heard is stabilizing property sales.

they need to lift some restrictions on the value ratio, downpayments, all of these things. we need more targeted help to the areas that need liquidity the most. david: we have to leave it there for now. we will talk to you last time -- next time. that is the chief asia-pacific economist. as you get your day going, today's edition of daybreak, joe says no. subscribers go on your bloomberg app. this is bloomberg. ♪

haidi: a quick check of the

latest business flash headlines. >> -- will become chair after may 5. he was counted as ambassador to china, he would step down at the end of the year. he succeeds the man who declined reelection. alibaba will target growth abroad and in rural china as a trust to move on from a tough year. alibaba says it overseas business and cloud technology as key growth drivers. the firm has tried to reaffirm investors about growth, alibaba was one of the first charges -- targets of china's crackdown.

a rival to tesla will be available in september. they have announced the first two downs are due in march. nio is focusing on capacity. >> he want to invest in technology for the long-term. second is our service, we want to provide all of the services surrounding the vehicle. we announced our plan for a power charter network in 2022 and we have built 733 charging stations. david: let us stay in the auto space with gm, its autonomous vehicle unit is set to launch. sources say that the ceo dismissed cruise ceo as he was applying for commission -- permission for rights in san francisco.

>> cruise is in great hands. the ceo is taking on the role of interim ceo. what i want the investor community to know is that cruise and gm are aligned on the do it at strategy we outlined on our last investor day. we are leaders in the technology and have a lot of growth opportunities ahead. we intend to lead. we are deeply committed, we have a great team, we have great people all across the enterprise working hard to integrate and accelerate. i will leave it there. we are all in. >> i know you do not want to address the question of why he left, but address a different question. the timing of when we see

commercial application of a cruise vehicle, there has been predictions we would be seeing it pretty soon. ? >> i want to make sure that everybody understands we are accelerating our effort here. we are on track with the deployment of a commercial basis. we are right on the doorstep as you mentioned. from a regulators -- regulators say we can have autonomous vehicles for our customers. we are testing with our employees and finalizing the touches on that. there is no delay or hesitation. it is full on, let us go. we are all in. david: that was the gm president. about 30 minutes into the session, we are down eight

points. two movers, civic group, and magellan financial down. keep that in mind as we make our way. haidi: we are counting down. a trading day in tokyo, this is one of the stories we are watching. in japan, after the outcome of drugs with biogen got a negative opinion from the u.n. drugs regulator. they will be selling offshore support. the shipping company says it has money from the transaction. orix expects a 2.7 billion dollar gain. covid cases surges to a new record high.

258 million dollars after renegotiating the price, down from the original debt made in preferred better. they have filed f

>> we will see about new restrictions. we are discussing the omicron variant. if the government felt that further action had to be taken, we would present that to parliament and it would be for parliament to decide. >> i do not foresee the lockdowns that we had before. i see the potential for stress on our hospital systems. david: coming up, health officials on how they plan to deal with the resurgence in the virus.

over the weekend, there has been an omicron variant. there is some concern and may wreak -- delay the recovery for the travel industry. as a international trips are starting to actually -- a lot of international trips are starting to pick up. including like singapore airlines. director general of the association of asian pacific, good morning, thank you for coming on the show. before we start with the outlook, this time last year, you had an outlook. what pan out according to expert agents -- expectations and what did not? >> we were pretty upbeat because vaccines were discovered and were beginning to be dished out. we were pretty optimistic. as you know, the delta variant

spread very rapidly. at the beginning of the year. that -- all hopes of recovery. -- that dashed all hopes of recovery. we are pretty optimistic about how things are going. i will say that if you ask me about a month ago, i would say that i was cautiously optimistic about 2022. omicron is a bit of a phenomenon. it is good to see that most governments in our region are still pursuing a covid tragedy. in regards to reopening, there has been a few exceptions. omicron is spreading ray

rapidly. -- very rapidly. governments are paying attention to hospitalization and how it affects the health systems. those things are taken care of. david: in the markets, there is a conversation going on between whether we price in recovery, we have oil prices this morning. i guess my question is, to what extent can we attach an outlook of recovery for next year given that there is so many moving parts, still? >> all we can hope for is a recovery. i do not think travel will go back to the levels of 2019. so quickly. i will say that generally speaking, i think airlines are

hoping to be doing around 30%-40% of 2019. to follow along the same lines. haidi: you point out it is key for china to open up. there are no indications that is going to change. >> that is a major drag. i think the europeans and americans have the trans atlantic route. asia-pacific is also essential for china and india. opening up and recovering as soon as possible. china is not only a tourism user, it also is a tourism recipient. china also abandoned --

[indiscernible] we look forward to a reopening of borders and travel to start again. haidi: that battle with boeing has been interesting. we see airbus tromping boeing. why has that happened? does not take the glass off of the recovery -- does that take the glass off of the recovery? >> no. not really. we are not looking at putting in others immediately. we want to get the show on the road. we want to start making use of the aircraft we already have. get recovery on the way. so far, it has been one step forward, two steps back. he went to ca momentum building -- we want to see a momentum

building up. david: i guess looking at the other side, and we look at these fairly large commitments from airlines including singapore airlines? might that be a proxy of underlying optimism? >> you do not want to be caught short when recovery picks up. you want to make sure that you have your air travel. ground staff at operational staff. reaching distance also. i think that is what the airlines are doing and preparing for. the position that the airlines are in. every little sneeze, governments are bringing on restrictions. airlines are doing the best that they can. david: given your projection of

30%-40% of 2019 levels. that does not get all of the boats back to shore, if you will. who among your members might need more money? >> i think everybody is in the same boat. we do not have liquidity, cash, unless you are able to operate. cargo provides that. cargo revenue is not enough. it is a matter of getting back as much of flights that used to operate in 2019 as possible. i think the airlines will be in a better situation. haidi: given how much staff has been furloughed and how aircraft has been grounded, is a question

that should be raised about what the new returns that even post-pandemic growth looks like? >> it is a lot of crystal ball gazing. many elements are the key. if governments are on the right signals, if you see omicron, and lot of knee-jerk reactions. we understand that they want to see what is going on with omicron. it is not giving the right signals for airlines to be able to plan. they are taking each step at a time. getting to where they can in the moment. putting all of the planning, making sure that they are able to catch up with demand.

every time a travel corridor is opened, we see that the surge in bookings. the demand is there. consumers are taking their cue from government. they book their flights and they go somewhere and they have to be subject to quarantine. it was a spanner in the works. -- puts a spanner in the works. haidi: carrying over to next year as well. director general. omicron is taking hold, various cases are surging to new records globally. it is hard to differentiate the variants behind the latest resurgence. professors spoke with bloomberg last week. >> we were one of the first countries to rollout vaccines in mass.

we have fallen behind other countries that are able to not only more effectively do it but also convince our population about the benefits of vaccination. i think that as we move through these variants, we saw this without book, delta, and -- we saw this with alpha, delta, and now omicron. vaccines are protecting us, it is the unvaccinated that is putting the stress on our health care system. spread incredibly efficiently and they find unvaccinated peounvaccinato be determined on how virulent this virus is. >> the uptick in cases in new york, is that the omicron wave happening here? >> it is difficult to differentiate between what is happening within the delta surge which was going on across many parts of the u.s., and what

omicron is doing. our sequencing efforts lag behind the efforts going on in the u.k. and south africa. we are not hearing about the omicron cases as quickly as we should. it is quite possible that the surges are treated to omicron because the data coming out of europe is showing this virus is at least as good as delta, if not better than delta at transmitting in populations that have immunity. >> how important is the psychological impact of lrp pool got vaccinated, -- of people who got vaccinated, and know people who are still getting sick. how much did that discourage people from both getting vaccinated and from listening to health officials by saying you will be protected if you take these measures? >> it is important to get the message of primarily protection from severe disease is what we

are seeing these vaccines doing. that is true even without buck, delta, and omicron -- even with alpha, delta, and omicron. covid-19 is looking like seasonal influenza. the vaccines prevent some level of infection. it will make a big dent in terms of the severe disease. that is probably where six months, one year from now, we will be settling in managing this disease. vaccines will limit cases and severe severity. we will be dealing with this as a virus similar to influenza. we are not at that place yet, but that is where we will be in a few months. david: that was john hopkins professor speaking with our lisa. >> we start with joe manchin, he

has rejected president biden's spending bill, leaving democrats with few ways to revive the economic agenda. it caught the white house offguard. the administration and senate majority leader will determine whether they can salvage some of the bill to address his demands. >> if i cannot explain it to the people of west virginia, i cannot over it. i cannot vote to continue with this piece of legislation. this is a no. >> the biden administration sees no pathway back to a nuclear deal with iran after the latest round of talks in vienna. the social security at finer says that the silver lining is that america and europe are finding common ground with russia and china in the talks.

antony blinken suggests we could -- u.s. could shift attention away from the accord. rate cuts referring to an islamic teachings, turkey will not back down from his new that its new economic reforms -- turkey will not back down from its new currency. a judge has ruled that the jury in ghislaine maxwell's trial can determine if she deliberately -- closing statements for the case will come later today.

global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. david: the latest in turkey, let us have a look, very early of course. we were trading north above so they 17 handle on friday -- above the 17 handle on friday. making futures about 15 minutes ahead of the japanese open. making rechargeable batteries is set to be more expensive in 2022. more on that story is ahead, this is bloomberg. ♪

haidi: we are tracking the fallout of the global supply chain. a good take up to 2025 for supplies. there are major deals. nike reports second-quarter results on monday, analysts are focus on the athletic company

and supply chain. the supply chain is looking for comments on inventory availability and production in southern vietnam which has resumed after being halted over the summer by covid-19. supply chain relationships will also be in focus when another company reports monday in the u.s., the chipmaker will top estimates. david: here is a word we do not usually say a lot, there is a market for manure. it has never been so hot, as you have seen on your screen. it is a shorter -- shortage of chemical fertilizer. they are soaring i made with the energy shortage. -- amid the energy shortage. farmers are no hunting for alternatives.

bloomberg clients can check out all of these stories in our newsletter on your terminal. it is spelled out like that. let us have a look at ev's now. nio has struggled. there are a lot of supply chain constraints. more auto chip outputs will be released after the third quarter of this year and remain confident in being able to deliver the new electric sedan on time. the new ed five sedan was unveiled over the weekend with a price tag of $51,000 before government subsidies. it is comparable to tesla's model three. the company is committed on expanding its capacity. >> first, we want to invest in technology for the long-term,

setting a high bar. second, is our service. we want to provide all the services surrounding the vehicle . we announce our plan for our power network, and we have already built 733 charging stations. haidi: vehicle batteries are expected to increase. what is the outlook for some of these key ingredients? >> it was pretty strong, as you mentioned, the supply chain issues are affecting these metals as much as any. that will keep prices poignant well into the next year. also for the long-term outlook, it is driven by that surging demand which requires lithium, copper, nickel, cobalt, metal

sun into electric vehicles and battery storage as well. there is a strong demand outlook. the supply has been constrained in recent years, these metals have not been as strong as they might have been. there are new resources coming through. david: let us talk fossil fuels. whether that is in capex or simply market performance, that has been fueling gains across the sector in australia. >> yes, that is right. we are going to see more gains. whether that is through the high price of electric vehicles, it has been under high demand. it is a potential headwind for the industry. in the long-term, especially lithium, we do not see new projects get off the ground, it will become an increasing issue.

the problem with lithium is it is quite damaging to extract lithium out of the ground. and uses quite a lot of water and pollution -- it uses quite a lot of water and pollution. ev is to clean up the supply lines, that is another impediment to fresh lithium resources getting developed. haidi: metals and money reporter, be sure to tune in to bloomberg radio to hear more from the big newsmakers. we are broadcasting live from our studio in hong kong, you can listen in by the app or bloomberg radio.com. this is bloomberg. ♪

haidi: and check on the latest headlines. a lawsuit from credit suisse bankers says the lawsuit should have paid more than the $2.6 billion fines over healthy americans -- helping americans of fade taxes. they said they did not disclose the money that was held by u.s. clients. the court ruled that the claims

were based on speculative assumptions. a deal require a luxury apartment rentals in downtown wren hansen, -- manhattan, the property giant is looking to acquire a residential tower. it is the latest in a series group of high-end buildings. -- do not meet the [indiscernible] finance asia since 100 have dropped out so far. applicants can withdraw rather than face an outright rejection. a iphone says it will delay -- binance will start trading on

december 30. there is a larger percentage of investors available. this is bloomberg.

david: good morning. haidi: asia's major markets have just open for trade. the top stories this hour. stocks are set for a mixed start amid more signs omicron could hit growth.

after a record year for fundraising, asian firms are expected to find a tougher going into 2022. we will hear from a chinese ai firm. david: that could be a bellwether sentiment. are there, one day come to market. in the meantime, the open is soft and tokyo. the momentum is to the downside. dollar-yen, 113.50. yields, the direction is down. korea online, quite light as far as data. in china, the lpr. some pressure on the kospi index, the dollar korea 1200.

some weakness. we are coming off a seventh week of gains on the dollar index on the back -- it's about dollar strength. haidi: that's take a look at how things are looking. new zealand is set for five straight days of losses, the biggest losing streak we have seen and about a month. take a look at the aussie dollar, trading on the back foot. 7120. new zealand seeing some downside when it comes to trading in the kiwi. bigger than expected trade deficit coming in today with imports and exports both a little bit higher. the consumer confidence number showing consumer confidence had slipped into pessimistic mode. david: speaking of this which we

are seeing, open flat, little bit lower. 33 points on s&p futures. 10 year yields 137. we talk about the dollar strength story, goes into perhaps the anchoring. have a look at where we are, the starting points for hong kong markets. this market is not pretty at all. the tech index following the decline from friday, the drawdown from the peak is nearing 50%. it has been rough. is this a buying opportunity? a head of research is here with us to map out the week. good morning. every time someone told me to buy this, i get heartbroken and go back into hiding. do i take the advice that there is value in this market? guest: there is a lot of market

risk. every time you see some go up, and hong kong, is the other way around. i think the market risk is always driven by u.s. china relations, and also with omicron . inflation fears. all of those things are on the table. the hong kong market -- mostly because there was a selloff on the tech giants. the weight on the index is high. if you turn around and look at the sectors, traditional sectors performed much better than the new economy sectors. i think the market may not be good to point to the index.

look at sectors. david: which would be what? banny: you see interest rates go up. international banks, hong kong banks performed much better. you are looking at specific factors. maybe infrastructure investments. low single-digit growth. you see much better growth in 2022. david: markets move quickly, they are forward-looking. four weeks ago, we were not even talking about rate hikes, now people are talking about three. how much more hawkish can the

outlook it? have we overshot the target? banny: three rate hikes is assuming best case. assuming labor conditions are back before the pandemic. the next six months are critical. is it possible the labor is not going back to the market? i would be suspicious about the timing of three rate hikes. three rate hikes i think is fair, because you need an upturn on inflation. it is maybe -- maybe the end of july or later.

that is a much more critical time to build. that would be good. not so early after stopping the qe program in march and increasing rates immediately. i do not think that is the case right now. haidi: how much more hawkish does the pivot need to be? how does that play into market expectations of the relative tightness of policy between the fed and pboc? banny: i think tightening on the pbo side would be a worst-case. you see lots of loosening's happening in the past several weeks, and also you could compare central banks policies that are quite different. china -- i think china is facing

some headwinds. now what they do, pointing more to the loosening side, i would see in the first half of 2022 [indiscernible] second one in the second quarter. china growth figures are not quite good. if you compare with central banks, tightening, yes. haidi: how much more downside is therefore china property?

you have been warning about further downside deterioration for a while. banny: i think we are still going down in the first half of 2022. i think for the moment, when the debt crisis started, it hit all of the developers. [indiscernible] the problem is, even though they can settle the debt, can they actually survive? they don't have any more liquidity to start new projects. after the first half of next year, there is a more positive outlook for the whole sector. at that time it could be a goodbye.

-- good buy. david: underway developers, overweight infrastructure. have a great week ahead. third quickly, have a look at u.s. futures. we are getting some pressure across risk assets. eighth week of weakness. let's get it to su keenan. su: we saw joe manchin rejected president frightens tax and spending bill. his announcement caught the white house off guard after weeks of negotiations. the administration and chuck schumer will determine whether they can still salvage some of the bill. >> if i can't go home and

explain it to the people of west virginia, i can't vote for it. and i cannot vote to continue with this piece of legislation. i just can't. this is a no. su: a foreign secretary will handle u.k.'s post-brexit negotiation after david frost quit the role. he implied he was unhappy with conservative party policy. in hong kong, they heard their first major election since the electoral system was overhauled by beijing last year. the turnout rate was just over 30% before polls close, that compares to a record turnout of 58% back in 2016. results are expected later

monday. china dictated a revamp of electoral systems last year ensuring that only patriots could run for office in a move that wiped out the cities pro-democracy camp. the death toll from the philippines strongest-this year has reached over 140 people. i governor says fatalities may rise considerably. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: still ahead, asia's ipo market has had a record-breaking

year. what is in store for 2022? we are asking for our guests outlook. that is later this hour. ahead, the omicron search. this is bloomberg. ♪

>> i don't foresee the kind of lockdowns but i certainly see the potential for stress on our hospital system. we have about 50 million people in the country who are eligible to be vaccinated who are not vaccinated. if you have a virus that spreads rapidly we will need a

significant stress on the hospital system. haidi: let's get more from new york. we are expecting more movement of people. >> this could be quite messy. don't forget, you have omicron.

then you have the holidays and colder weather. people traveling, moving all around. almost every u.s. state. david: wondering if you can get us up to speed, there are so many places out there. who is locking down? ian: we haven't really seen that many lockdowns to be honest. the netherlands became the first european nation to lockdown. austria did two weeks ago, but where was omicron two weeks ago? here in the u.s., lockdowns just aren't a reality area when fact

she said there won't be lockdowns, it isn't just because it's 2020 anymore. lockdowns are politically impossible. if the democrats do that, it will be a harder road for the 2022 midterms, and they just look weak because a huge percentage of the country would not follow the rules anyway. what dr. fauci said was right, there won't be lockdowns because there couldn't be. david: good way to put it. on the others out of the story, you saw the graphic earlier. 2 million new cases. in this part of the world, we

are talking china. let's bring in our executive editor for more. we found her cases, and where? reporter: two new cases that have been caught in hunan. both cases were coming into the country. they have not resulted in community spread. delta is still spreading across china, when that variant got in the country, it resulted in the most widespread infections since the beginning of the pandemic. there is concerns about omicron, how easily express, chinese vaccines. there are concerns. haidi: 46 days before the start of the winter olympics. are we expecting the same,

stricter? reporter: i think it will be largely the same. china has been very strict. i would expect the limitations, restrictions in and around beijing, the city up north where the skiing is going to happen. i would expect those are more intense as we get to the olympics. then the paralympics after that. going into march, the national people's congress in beijing. in the spring it will be pretty restricted. david: l greater china editor. haidi: we were saying earlier, feels like a turning point when it comes to the number of people testing positive. senators are testing positive,

mild case. senator elizabeth warren has tested positive. within wall street, we see these cases. jefferies ceo saying he is on day 10 of his self-quarantine saying he was lucky, two days of feeling ill but has no doubt that it's mild. jeffries was one of the first to require vaccinations to come back into the office, telling people to start working from home again. there is so much uncertainty. david: that is a good point. the fact we are talking about individuals and reporting it does feel like this time last year. i remember talking about tom hanks. do we need to look at it that

way in terms of case count? perhaps that's a different conversation altogether. that is in instagram. 10 things the jeffries boss learned while in quarantine. a drone giant catching tension between the u.s. and china. the details of that story just ahead. this is bloomberg. ♪

david: welcome back to the show. let's talk about drones and dji. the near-monopoly warning that the government might be getting access to sensitive data.

our guest is here with more. guest: as you said, the largest drone maker in the world. in the u.s. they have much more than 50% in the market when it comes to consumer drones. almost monopoly. they dominate this market. the concern critics have are these drones flying around collect data. dji says there is no reason to be worried that data is protected, critics say they do not believe that, they think there is data they get some back to china. this is becoming more of an issue now because there are various proposals in washington saying there needs to be more legislation targeting dji.

the u.s. put dji on a blacklist. this is related to what the u.s. said is dgi -- dji's role in surveillance engine junk. haidi: we are talking about an ipo in hong kong. this is all part of this much bigger debate about data security. guest: the bigger debate is there are so many devices collecting data of all sorts. governments around the world are concerned with happening with that data. in china, the government has taken various steps to protect data to prevent data from going outside of china. the united states is taking some moves as well. we see increasingly that governments are thinking of ways to put up walls to protect data

from adversaries. potential adversaries. haidi: cruise on her and what the story. let's get a check of the business of bonds. alibaba will target abroad in rural china. alibaba says it sees overseas business, poorer cities and cloud technology as key drove -- growth drivers. they are trying to reassure investors nervous about growth after alibaba was one of the first targets of china's tech write-down. a china automaker has unveiled a sedan with a price tag of $51,000 before government subsidies. it is the most direct rival yet to tesla's model three. they have launched a more expensive electrics event, the ceo says they are focused on

expanding cb capacity. coming up next, patriots only election. we have the details next. this is bloomberg. su: this is d.

we start with germany which has given that u.k. its highest risk virus destination. the netherlands has returned to a full lockdown. only supermarkets and essential shops will be allowed to stay open.

the government may make masks mandatory outdoors and step up testing. the turkish president has pledged continue with rate cuts referring to islamic teachings. he said turkey will not back down from its new economic model which relies on lower borrowing costs and cheaper currency. it is the world's worst performing currency over the last few months. the biden administration still sees no pathway back to a revived nuclear deal with iran. this after the latest round of talks in vienna. jake sullivan said the silver lining is the u.s. and europe are finding common ground with russia and china in the talks. antony blinken suggested the u.s. could soon shift its attention away from attempting to resurrect accord. finally, a judge in the u.s. has

ruled that the jury in ghislaine maxwell sex trafficking trial can consider whether the socialite intentionally avoided knowing the ages of her accusers or deliberately ignored the behavior. the move came in a rare weekend hearing. closing remarks will come later monday. 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 su keenan. this is bloomberg. david: happening over the weekend. we had elections taking place in hong kong, 30%, the lowest ever turn out in these elections taking place. the previous i believe was 58.3%.

we do have markets, why not. the dollar strength is still a feature on the markets. we will be watching what happens with hong kong. we will talk about that later. in the meantime, hong kong elections. our greater china editor is with us. lowest ever turn out in these elections. reporter: that's right.

multiple public appeals to come out and vote. despite that, people were not inspired. haidi: does beijing care? reporter: i think they would have liked a big turnout. ultimately it's incidental to the larger aim which is to give beijing more power. all of the candidates are pro establishment figures. the election on sunday when without any violence or protest. overall, this is probably a win. david: she has denied the vote was in all -- casting the spotlight on the differences between the candidates. reporter: i do not think the

electorate is convinced. they are not loyal enough to beijing. or in exile. while the government may promote this line that this was a true vote, people in hong kong are aware of the reality. haidi: what are the main issues or grievances at this point, turning up to the polling booth? reporter: the grievances are is the government has moved to limit democratic freedom. they have denied them the fact to leave the city which is something they have had. in 2016, the pro-democracy candidates with the largest number of seats since hong kong was returned to chinese rule. people felt they were having

progress and having a say, and they can see quite clearly that freedoms have been rolled back in the selection. -- this election. haidi: coming up next, a resilient and flexible strategy will be imperative for companies hoping to beat the ipo headwinds next year. that is from you i. more on the outlook for deals ahead. this is bloomberg. ♪

david: welcome back to the show. we can talk about relaunching processes. speaking of ipo, asian companies might find it hard to beat the bar next year given the cost of rates, china tightening on big tech. our next guest says global listings will face several headwinds including what we just mentioned. let's bring in paul. good morning. ipo's have been well. to what would you attribute the record number? reporter: it has been a record year in terms of what we have seen.

the highest levels of ipo's in the last 20 years. many contributing factors. initially, the initial optimism with vaccine rollout, strong corporate results, rebounding. and also ample liquidity in the financial system. very strong stock market performance, particularly in the u.s. and europe. these all contribute to strong ipo activities, especially in the first three quarters of this year. towards the end of the year, especially q4, we are seeing the new variant, omicron. a lot of regulatory and governmental policy changes ahead. we have seen chinese companies listed in the u.s. and have to announce delisting plans. we have seen an ipo application

process. then they have to postpone the ipo. investors and ipo companies, we need to plan ahead and expect some challenges. for example, government policies. david: the last thing, and a company and any bank that underwrites these listings once for you to list, raise the money and have the prospect of having to take the stock out. the question i want to get too, for mainland companies, i know their preference for many is the u.s., but is that still a feasible destination? paul: we have seen 38 chinese companies going to the u.s.. since mid july, there has only been one.

one from china and one from hong kong. at present, with the not so user-friendly policies and requirements from the chinese government, i will say many ipo companies which were looking to do u.s. ipo's are considering an alternative, coming to the hong kong stock market, or even going to china. in the longer run, companies will probably still consider an ipo in the u.s.. haidi: when you talk about rescheduling ipo's, does that make sense that most cornerstone investors and institutional caution will be both by interest and also going to mainland firms? paul: first of all, it will

depend. we are looking at the private equity industry. if there are 20,000 portfolio companies which is an all-time high, a lot of companies are looking for possible exits into the capital market. some companies have more private investors -- it would also depend on cornerstone investors -- haidi: which you look at the

regulatory side given how under own china is? paul: there are 250 chinese companies in the u.s.. some have completed secondary listings in hong kong. not all of them are qualified. there are requirements for two years. we are seeing more chinese companies considering outside the u.s. as an ipo destination, given the regulatory requirements.

david: let's talk sectors. he talked about the sectors that dominated listings. going into next year, what sort of headwinds do you see? paul: it differs between different jager fees. technologies, health care, materials. in our part of the world, health care in particular, hong kong, we had 30% of the hong kong stock exchange ipo this year from a health care company. 20 of them come from biotech. health care remains a very important sector. in asia, we are seeing a lot of unicorns.

spac mergers and the u.s.. david: did not do well. paul: and australia. mining company focus, in terms of the sector, the usual suspect technology, health care. globally, we are seeing large houses trying to complete ipo's as well. software companies, iot, software as service company, and also any company that will benefit with more and more reliance on office automation, office collaboration, application and software. work from home will stay longer than we expected. haidi: always a pleasure speaking with you. a chinese ai firm is relaunching at ipo after delaying the

listing earlier this month. let's get more details. that listing really through -- is there much of a difference between the first round of details? reporter: the main difference is the cornerstone. there are a bunch of u.s. bonds. [indiscernible] mostly friends and family. the only raised $760 million, and that we see the cornerstone investors.

david: we are fleshing it on our screens right now. december 30. that is when the debuts going to be? reporter: december 30 was supposed to be the debut. they expect to close the book thursday. the company is considering closing the book early to send a signal to the market but everything is well. haidi: our ipo reporter. coming up next, kaiser has appointed a financial advisor. we will get you the very latest, next. ♪ tune into bloomberg radio tuned in from the daybreak team.

broadcasting live from hong kong. listen live by the app or bloombergradio.com. much more ahead. this is bloomberg. ♪

it's haidi: the jefferies ceo says he is on his 10th day of

self-quarantine after testing positive for covid. he said he was sick for two days and feels 100% healthy. early, jeffries set a mid-january date for return to office after asking staffers to work from home. the bank >> employees to get their booster shots by the end of the month. spider-man posted the second-highest opening day and north american box office history, trailing only avengers. it brought in $122 million on friday and is set to hit $242 million for the weekend, that would make it the best december debut of all-time. blackstone is nearing a deal to require luxury apartment rentals in manhattan. the latest wager on the resilience of new york real estate. bloomberg learned the property giant is an advanced talks to acquire a tower from brookfield for $939.

with the latest in a series of recent bets on staying power of high-end new york buildings. beijing is asking companies owned by the central government to prevent risks and debt. central state owned enterprises will reportedly control m&a and refrain from taking over high risk projects. the agency overseeing it says they should rent in debt risks including by cutting the debt ratio of their subsidiaries. david: kaiser has appointed a financial advisor, we understand shares will be resuming trade today. to get us up to speed with everything that's happening, many strands to the story. rebecca is with us in our studio. reporter: here we are again, looking at a possible restructuring.

it's a blast from the past from the kind of mad year we have seen. when it comes to kaisa, the key thing to watch as the debt restructuring plan. they don't go into specifics, but we can assume if the lagarde group representing bondholders that has presented this financial plan, and it does look like a difficult the to get across the line. several options are being proposed. they would need an acceptance of bondholders and there are nearly $12 billion worth of outstanding debt. it's a complicated situation to resolve. that is the key thing. of course, we want more clarity. it's one thing hiring advisors, but how you intend to deal with restructuring a large curve like this will be interesting for many offshore investors. partly because kaisa itself is

interesting, as one of the only developers to have defaulted and successfully came back to market, it's historically watched as an example of success. haidi: we will continue to watch the fire sale. reporter: shimao, unlike evergrande or kaisa, they have taken many investors by surprise, a very popular name. it's very unexpected a name deemed for so long to be strong would run into trouble. we also saw further downgrade, it lost the final investment grade status, moody's cutting it into junk. things are not looking particularly strong for shimao. whether or not it can raise

asset sales like this, they look small in size, and shimao has quite a chunk of onshore dollar debt coming through to the next year. much like the stories of the developers, it's all about the dollar debt. developers had not had access to the primary market to roll over and finances offshore debt, therefore it has been global investors that have felt a lot of the pain when it comes to rising defaults and stress among property firms. david: there we go, resuming trade today. rebecca with one of the things we are tracking today, and of course the loan prime rate is one of them. have a look at this chart. it gives us the set up, where we need to be. china has managed to keep funding rate stable, that is your benchmark and money market rate. the question is, do we see the banking system -- largely remain

stable in terms of the five-year, do we get that lower? we will find out in about 25 minutes. coming up, the agenda for today. some sectors, the loan prime rate, 200 day average, volume spiking on friday and on time, plus, the weather. we understand hong kong may be issuing tropical cyclone warnings. it's cold out there. it's not just foods, it's rain boots. haidi: not going to be quiet heading into the holidays. pretty big week ahead, we have some big guests as well. we're hearing from a former u.s. ambassador to china, telling us how he thinks relations will fare after the senate confirmed a new envoy, possibly speaking to barclays about how omicron concerns will be affecting their global growth outlook in 2022.

that is just about it for daybreak asia. market coverage continues, we are getting ahead to the start of trading in hong kong, shanghai, and shenzhen. bloomberg markets china open is next. this is bloomberg. ♪

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♪ >> good morning. it is not :00 a.m. in beijing. -- not :00 a.m. in beijing. let's get to your top stories. tightening monetary policy keeping investors in risk off mood. oil sliding.