paul: i'm paul allen in sydney. counting down to asia's major market open. shery: i'm shery ahn in new york. welcome to "daybreak" asia cautious open aztec drag down u.s. -- as tech dragged down u.s. stocks. the feds most of his policymakers shifted. now backing to hikes to counter

inflation risks. the chief supply crunch set to continue with the wage rising since at least 2017. >> just open for trade in australia. the asx moving very modestly higher at the moment. a couple of points. we have the staggered open. when we get going, it might be worth keeping an eye on retailers, and that one that owns the coals chains. retailers here facing increasing challenges in keeping the shelves stocked with a number of critical transport workers being forced to stay home in isolation after contracting coronavirus. if we take a look at the museum and back trading for the first day of 2020 to come up pushing higher by about .5%. playing catch-up. nikkei futures kind of flat. along the 10 year in australia, as well. nudging a little higher after we

saw it spiking yesterday following the u.s. tenure. currently hovering around 175. shery: a lot of hovering around. u.s. futures muted at the open after we had a mixed finish with the dow rising. tech shares dragging down the s&p 500. nasdaq composite losing more than 1%. had some valuation concerns. wti extending the gains from the u.s. session. above seven u.s. dollars a barrel as opec-plus sees tighter market in the first quarter. it has also approved that 400,000 barrel a day increase in supply starting february. talking about valuations. that was as treasury yields continued to rally. the 10 year yield on fire as traders are positioning for perhaps a more hawkish fed this year. we have the 30 year yield above

2%. so it has been about the treasury space and the bond rout that continues. investors ditching more than $1 billion in that treasury etf in the u.s.. the ishares etf. we also had more positivity about the economic outlook for more optimism of risk assets. not to mention corporate debt sales are also weighing on the treasury space. paul: it is against the backdrop of the omicron variant. really raging in the u.s.. more than one million cases where you are. quite staggering. perhaps the good news is severe outcomes are far lower. not removing the experience in south africa and united kingdom. omicron accounting for 95% of those cases in the u.s. differing more return to work plans.

investors pushing back on those plans. pfizer saying the u.s. government up to 10 million doses of its treatment. shery: as you said, the raging omicron variant in the u.s. leading to schools being closed across the country. we also have the shortage of covid tests. now president biden expressing his frustration with the situation. >> i know this remains frustrating, it is frustrating to me. we are making improvements. in the last two weeks, we have stood up federal testing sites all over the country. we are adding more each and every day. shery: let's bring in -- with this. alex, we have seen those testing lines. despite all of this pessimism, president biden was a bit more optimistic about the pfizer appeals, which he calls game changer. what do we know so far?

>> the u.s. has doubled its order. also trying to push to become faster. worried about 10 million of these doses of axel ved. there is a lot of evidence that it is really effective tool, early treatment. this will come soon. 10 million are supposed to come from the fall. obviously they want to get them out. it takes a while. you cannot turn them out overnight. the expectation is they will hit the u.s. sometime in the summer. it is worth the peak set of cases. we are looking at coming in the months ahead of time. paul: i guess if we were to take one positive of the surging cage numbers, the most severe effects of the population. what is the effect of

hospitalization and intensive care? >> you are right. a lot of public health goes there. and the cases and hospitalizations, and deaths are much more decoupled. we used to see cases go up and in about two weeks, we would see hospitalizations go up and death increasing. it would be common. with omicron, we are not seeing the big jump. they are warning and we are seeing more cases. we are seeing one third less hospitalizations. we see three times the case. hospitals themselves, we would say it is less severe, they are also a lot better at dealing with people who have come in with covid. this is a strain on the health system. obviously they are warning not to take it lightly. shery: what does it mean in terms of policies? we already saw the cdc warning

it. but returning to the office movement has been cut back. >> obviously it will be different on one sector you are in. particularly in the u.s., there has been resistance to the lockdown or the shutdown behavior we had seen earlier in the pandemic. there's a lot of places in the country, really no appetite for it. i don't see the early 2020 shift. in the commercial sector, a lot of it are trying to rethink it. asking themselves where we need to be in the first half of this year. for a lot of companies, they are working back on it. paul: bloomberg's alexander ruoff. despite the virus concerns, oil is tracking higher after opec-plus members agreed to get more output. that's bring in su keenan for the details. what is opec saying?

su: they are easing concerns about the impact of the omicron variant. they don't think it will have a damaging effect. they will also see a tighter market supply than originally thought. that is perhaps what is driving the reaction. it is not that easy. so they have been deciding to go ahead with the monthly increases. and a very brief online meeting of the 23 member cartel. in terms of the reaction, we saw better than 2% gain in west texas intermediate, and asia trading. we now see an extension. west texas intermediate above 77. brent crude in the u.k. rather close above $80 for the first time in more than a month. positive bullish reaction. the key takeaway is in addition

to that monthly increase with -- which was expected, is they see a much lower surplus in the first quarter because they are admitting weaker supply from rivals. there's a lot of production usage from some member companies -- countries such as nigeria. they are struggling to meet the targets. chose a new general to take over from the current secretary-general. that is going very smoothly. so all of this is being taken positively by the market. shery: w outlook? su: analysts believe opec is comfortable with prices going higher. in fact, going back in the bloomberg, there was a concern months ago that opec was going to start flooding the market with oil. that is not the case. it takes a very long time for them to restore to be pandemic

levels. now we have -- according to an rbc analyst, two wildcards. the russia and ukraine. particularly with the west. if they flare up and interfere with our output, it can cause opec to get back to the table. you also got other concerns having to do with the lengthy iran nuclear talks. whether it brings oil back on the market. opec has made some room for themselves in these monthly meetings to readdress whether they quicken the pace and bring oil back on market, or take a pause. they believe demand is largely withstanding omicron is significant. u.s. markets will be focused on the inventory data later wednesday morning. back to you. shery: su keenan with the latest on oil. let's get to vonnie quinn with the first word headlines. vonnie: the u.s. cdc reclassified its travel advisory

for singapore, telling americans to avoid traveling to the city because covid levels are unknown. singapore joins the same classification category as afghanistan, north korea, and syria. weekly infection growth rate has increased. they have faced nearly two months with over 800 cases reported tuesday. japan will bring forward booster shots for elderly people and maintain tight border controls to slow the spread of the omicron coronavirus variant. the prime minister told the new year news conference that million vaccine doses are available across the country. 1% of the japanese population has received their third shot. >> in order to guard against a rampant spread of community infections, our omicron measures will shift to domestic focus while maintaining the current border measures. we will further strengthen the framework for protection and treatment. as for vaccines, we will work forward a third doses for healthy workers and elderly.

vonnie: goldman sachs says bitcoin could hypothetically reach $100,000 if it continues to take market share from gold as part of a broader adoption of digital assets. the global fx and strategy cohead wrote in a note even the digital coins consumption of resources will not curb demand. bitcoin climbed about 60% last year and has started a 4700% since 2016. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin, this is bloomberg. shery: still ahead, global oil markets are suggesting the opec-plus decision to lift outputs. the insight ceo says crude markets are recalibrating. she will join us to break down omicron's impact on energy demand. up next, the latest bond market is a rude awakening to start the year. traders are now grappling first

taper in years. more on that next. this is bloomberg. ♪

>> the quarter by the end of the year. to me, that seems fair. the pricing will be more gradual. today's price action is deja vu from last year. we saw a very quick frontloaded repricing yield. nothing happened. for me, i feel there is a lot more room. given the trajectory for growth and inflation. shery: a call for higher yields as we see treasury yields rising for a second straight day. increasing conviction the fed will raise rates at least three times this year beginning in

may. our next guest says the reality of the first major taper move is dawning on the markets. the global strategies president joins us. great to start the new year with you. happy new year. where do you see yields going? bloomberg intelligence says it could be talking 1.7 for the 10 year, given we have the jobs report coming up. >> i have not changed my forecast in the last six months. namely the 10 year yield is headed toward 2%, likely higher. even down somewhat in the intervening months. the expectation of reaching 2%. i think we will be there. once we reach 2%, i will reassess to see whether that is set up, or it will rise even further. i expectation at this point is

once we reach 2%, i will be looking at a target even higher after that. it can happen very quickly. if the fed backtracks and doesn't increase three times -- by the way, i don't think it is a done deal at all. they might raise rates three times. shery: especially after we see the tech sector really being crushed. is that why you don't see them moving forward with this very hawkish stance? >> exactly. it was this time, because tech being classed, nasdaq coming down sharply. but what is likely to happen in the future is more of the value stocks also get hit. and if the broader indexes also get hit, similar to what we saw in late december of 2018,

chairman powell completely pivots when faced with that situation. goes from a hawk to a dove in no time at all. so that is a reality. at the present point, the bond market things increases in interest rates are very much in the cards. bond markets typically need equity markets and expectations. in my opinion, equity market is lagging behind. it is more complacent. if it is correct, there is no saying what the fed will do. paul: these moves have been so well telegraphed for so long. what are the risks for the fed of being perceived to be let around our markets -- let around by markets? >> good afternoon to you. now we are in sydney. i would say the fact the fed is

behind the curve has been obvious to markets for some time. it is not going to be a new discovery for markets behind the scenes, behind the curve. calling the end of transitory inflation, he was behind the rest of the market in believing inflation will not come down soon. the markets don't care whether the fed is ahead or behind the curve. what equity markets are concerned about is topping off the monetary facets. increasing interest rates or not. who cares whether he is correct or not in his analysis, tell me what he is going to do. that is the market attitude. so far, the markets are not convinced. paul: we have the fed tightening

in the u.s. on the others of the pacific, china looking to stimulate the economy more. growth is stalling. the csi 300 not have a great 2021. how is the health of corporate china looking to you, especially in terms of debt burdens? >> i've been very concerned about chinese corporate debt for quite some time. investors at least going back two years the gdp ratio i estimate around 360% simply cannot be sustained. what you have is a sovereign debt situation that is very good shape. it is not chinese public debt that is an issue. china is a credited nation. on the other hand, the problem is corporate debt. increases in corporate debt have been the way in which the economic growth has been sustained. there are problems with accounting, for instance.

if you build one more building that is totally unoccupied and you build it with a lot of debt, gdp increases. on the other hand, if the building is unoccupied, you need to take it off the gdp, but it never happens. the problem is, a few countries, australia, brazil in particular, very dependent on exports to china might be affected in that part of the world, look for countries that are less correlated with the chinese economy. but i don't see a lehman moment after evergrande or fantasia failures. there will be more failures, but they will all be managed. paul: komal, we have to leave it there. but thank you for joining us. we have an alert for you. north korea may have fired a ballistic missile. this is according from an email

from the japanese coast guard. it doesn't elaborate any further. if it is correct, it would be the first north korean missile launch since october 2021. it would violate un security council resolutions. just an email statement from the japanese coast guard that north korea appears to have launched a ballistic missile. still to come, ford surges to a 20 year high over optimism of its electric pickup truck. toyota grabs the u.s. auto sales crown from gm. details ahead. this is bloomberg. ♪

paul: continuing to track the fallout of the global supply chain crunch. these are the top stories. a bigger than usual rush to

stockpile products on retail shelves and warehouses ahead of the holidays my giveaway to an economic hangover of sorts. lisa is -- it is one of the interpretations from the managers index. it usually drops in december. in 2021, it stayed elevated. it can crowd the prices and growth. the ism manufacturing gauge in the u.s. fell more than expected. bloomberg intelligence says indications of reduced supply strains are emerging. they conjured up orders and aged down slightly while employment growth broadened. on the topic of jobs, the transport industry is -- another year of supply chain disruptions. labor strains persisting through the sector and the latest data showing a record of 4.5 million americans quitting jobs in november. shery: watching automakers getting back to back sales. the sector being hit hard from chips to logistics and topline figures showing the latest commentary manufacturers suggest chip supply improving in 2022.

the shortage already shaking things up in terms of market share. toyota overtook kiev in sales for the first time since 1991. in the premium market, bmw beat mercedes-benz in premium car sales for the first time since 2015. bloomberg terminal users can read more about those stories in our newsletter supply lines. here is a quick check of the latest business flash headlines. ford motor stocks surging to a 20 year high after doubling factory capacity for its battery-powered f-150 lightning pickup. set to start taking orders from thursday for the plug-in truck that has already received 200,000 nonbinding reservations. the carmaker is capitalizing on the soaring demand by boosting output. but it missed ou -- it mentioned gauging the market has been tricky. >> between the covid crisis, the chip crisis, the industry has

struggled to produce at the levels we were producing. so you take that price, those prices, and as we are transforming the company, t go from internal combustion -- to go from internal combustion engines to battery-operated vehicle, it has been a strength. shery: it cut stake in singapore , selling 3 billion dollars in shares. the move sent fees tumbling as much as 13%. tencent sold shares as $280 apiece. a discount of almost 7% from the previous close. traders speculated tencent might be planning to pair its holdings in a range of companies as it focuses on new areas of growth. an indian court rejected future retail to cross arbitration proceedings initiated against it by amazon in singapore. future asked the court to declare the case illegal after india's competition watchdog suspended the indian retailer's

29 deal with the u.s. e-commerce giant. coming up next, opec-plus to revive output, citing better demand outlook. we will get insights from the ceo. this is bloomberg. ♪

♪ shery: look at the commodity space. iron ore supported in singapore trade given the stronger eco-data. look out for pressure in subsequent trading because we have china's covid zero strategy concerning investors. copper leading metals. pared back gains, so the metal was supported natural gas has been seesawing. we have a cold spell in the u.s., but some investors are convinced this weather will be sustained and will sustain

further buying. wti extend slightly those gains from the new york session. we had heard from opec-plus that they see a tighter market in the first quarter. >> on that note, let's bring in dr. amesh adalja, -- vandana hari. how does the demand side of this picture look to you, particularly as we got the omicron variant of coronavirus raging across the world. >> good morning when it comes to demand this year, i would probably put it in two buckets. you mentioned omicron. it is important to talk short-term, let's say the next couple of months. opec-plus believes omicron impact is going to be shallow and short-lived. i would tend to agree.

what we are seeing through this quarter is that some of the demand rebound we saw last year is continuing, but there has been a crimp on demand. we have seen countries put in place a lot of restrictions on international travel. the holiday season, christmas season did not bring about as much travel spending, getting together, as one expected. i do believe it is short and shallow, the impact. looking out on the whole year, we saw a tremendous rebound in demand last year from the reopening, obviously compared to 2020 when demand collapsed. i believe this year we are going to see economies globally moderating. as a result, demand growth moderating as well. we will have demand growth, but nothing as spectacular as last year. paul: on the supply side, we had

opec-plus delivering the 400,000 barrel increase, as was expected. can they actually deliver on those increases? some member states are struggling to hit targets. >> question. if you look back at the last august through november period, for which we have data on production, they delivered about four out of every five additional barrels they had promised. that is not deliberate. it is important to understand two of the bigger -- midsize producers, nigeria and angola are struggling. these are problems that will remain with them through this year. a lot of the smaller producers -- and again, keep in mind this alliance is made up of by and large very small producers who

are unable to ramp up and have been unable to ramp up for months. opec will be delivering, i believe, every month going forward, a little bit less than what it is promising. that would actually be a comfort factor for growth. shery: given the short-haul is not deliberate, is some of the criticism from oil consuming countries unfounded? the chart showing actually opec-plus has been supplying markets a little faster. >> the criticism is right. we do know that inflation was a massive problem for governments. if you talk to analysts globally, inflation concerns are among the top three risks they are deciding for this year as well. there wasn't much governments

could actually do to tame inflation because of supply chain problems and pent-up demand coming back into the market. the one area they could do something was oil and gas prices, but they went in the opposite direction. especially in the fourth quarter of last year, it brought painfully high prices. one thing the market may not have -- opec needed to deliver a substantially higher boost if it wants to listen to u.s. and other consumer country's demands. perhaps it was not in a position to do that. a handful of countries in that group are actually capable of ratcheting up output. but, they will need time to prepare for that. shery: how much of the oil flows right now are going to china? the reason i focus on this is because we continue to talk about the slowing economy. not to mention they have been

sticking with the zero covid strategy, which is not great for oil markets either. >> china needs to be viewed in two perspectives. one is what happens to its huge spike in imports in 2020 and 2021 rebound in demand. if you look at 20 to anyone chinese demand, it was 111% of 2019. that is unparalleled in terms of demand rebound anywhere in the world. going forward, as i mentioned, global economies are going to slow down. monetary fiscal stimulus is going to dry up. china in particular, i believe, is going to struggle to maintain economic growth. as a result, growth is going -- demand growth is going to come down as well. last year, it's imports were 7% lower than 2020.

keep in mind that let's not draw a straight line from whatever we saw with chinese crude imports or demand growth over the past years. shery: vandana hari, great having your insight on all things oil. happy new year. let's get the vonnie quinn with headlines. vonnie: pfizer says the u.s. government has agreed to buy 10 million covid-19 pills, on top of the 10 million doses they had previously agreed to purchase. pfizer's pill was cleared last month. it has been showed to sharply reduce hospitalization and death from covid-19. rustic eaters have dropped their criminal a case against andrew cuomo. albany's district attorney says the allegation cuomo groped a woman is credible, but there was not enough evidence. last month, two other counties ended their investigations

without bringing charges. haitian prime minister henri says he has been targeted by bandits who tried to assassinate him. henri says his armored car was hit by gunfire on january 1. local media reported gunshots and at least one death near a building where henri was due to give a speech. the prime minister took the reins in july after the assassination of the previous president. 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 vonnie quinn. this is uber. shery: china's -- is set to resume trading in hong kong. the firm almost collapsed last year after getting a $6.6 billion bailout. stephen engle is in hong kong. in the end, -- to prove to be too big to fail. >> in the sense at the ministry

of finance is -- and this bailout led by a consortium of companies, it is being repositioned still as a state back asset manager, but pair down. streamlined. . this was set up in the late 1990's to dispose of the bad debt piled up at the banks in the wake of the asian financial crisis. and subsequent decades, it really branched out to other financial services, representing the largess we saw in the last couple of decades. earlier this year, the former chairman was convicted of bribery and bigamy and was executed. it is a far fall from grace for huarong but they will be streamlined. they have taken measures to return to its core businesses and also simple fight it's

structure to reduce capital consumption and therefore hopefully increase returns. stock was suspended from trading in early april. that is when they spooked the markets and bonds started tanking. because it delayed its 2020 result. subsequently posted the $16 billion -- it has in its turnaround plan returned to profitability. but again, investors will probably approach this with more caution as huarong resumes trading after many months off the market. paul: also resuming trading, evergrande. unsurprising news, sales plunged in 22 anyone. what sort of numbers are be talking about? >> we heard yesterday the december contract sales were down 99%. that is essentially no sale. nobody is lining up to buy these

properties. they have over one million undelivered units across china. that might be a conservative number. overall full -- for the full year, contracted sales of evergrande fell 39%. that sounds generous because really, the numbers started -- significantly when liquidity woes ramped up in october. they did resume trading on the stock was up yesterday, but this stock has absolutely been beaten up this year. traders are not is sara lee sure why the -- not necessarily sure why, it may be short coverings. a brief respite in what has been a down set of news leading to the new year. shery: stephen engle with the latest on evergrande and huarong . up next, japan's prime minister promising new covid priorities. we will have details next.

this is bloomberg. ♪

shery: currency space, we have gains in the new york session after we saw data missing

estimates with isa manufacturing on excitedly falling in november. we are following the aussie dollar, slightly higher right now. among the gains, oil prices, gains in metal prices on the aussie dollar. the turkish lira again weakening after losing more than 40% in the last year against the u.s. dollar, given the central bank continuing to cut rates. we have seen more intervention, but that is not helping stem the losses against the dollar and the euro. japanese yen holding, getting past that level since january 2017. we are seeing less demand given there are less concerns about the severity of omicron, and given the federal reserve is specter to tighten.

paul: let's stick with japan where prime minister fumio kishida told a news conference about his plans to slow the spread of omicron. >> in order to guard against rapid spread of community infections, our measures will now shift the mastech focus. while maintaining current border measures, we will further strengthen the framework for prevention and treatment. as for vaccines, we will work to bring forward sir doses for health workers and the elderly. paul: let's begin isabella reynolds. how is kishida planning on dealing with this upturn in cases? >> you look at the situation in japan, for the past couple of months we had this incredible rest bite from cases that respite from cases where there were no deaths in a given day. the number of infections was very low. we have seen in the past week the number of cases have more

than doubled. i think kishida is getting worried about that. as we saw in the clip, he says he is going to maintain these very tough border controls, which he keeps saying are the top us -- toughest. . >> that is banning all foreign entries come up yet students were entries. that is going to be reviewed next week. we don't know how long those measures are going to get around. to bring forward the third shots of boosters for elderly people. he did not give much specifics, but we know local governments have 9 million doses on hand at the moment. they can use those to bring forward the gap between the second dose and the third, which apparently is eight months for japan. we will see how that pans out. there are arrangements for people to recover at home if they test positive, given that

omicron seems to be less severe than previous variants. but, if hospital beds fill up, he said be could see a return to restrictions such as we saw over the past two years, like we saw for business hours, bars and so on being closed. that is very much further down the line at the moment. shery: we have also heard pride minister kishida emphasized the importance of diplomacy. what is on the agenda? >> he keeps saying this year is the year he wants to host summits, meet leaders in person. having said that, this issue of omicron has popped up and he said he had been trying to arrange summits with president biden and the australian prime minister, but he said he is now not going to hold those until the full session of parliament starts, which is reported to start january 17. i think that shows he really has shown the public he is focusing

on the virus. he has -- in july and he knows that his two predecessors lost public support after being seen as not taking the virus seriously enough. shery: the latest on japan's political environment. capping down to the start of trading in tokyo. we have economic numbers out of japan, including the monetary base and consumer confidence for the month of december. we are watching toyota narrowly beat gm to be the top-selling automaker in the u.s. last year. this after a 10% boost in sales, it is actually the fourth time since 1931 that a gm has not been number one. we get data on japan in the coming hours. in south korea, joint chief of staff is saying north korea has fired an unidentified projectile

towards the east to see. we will be watching develop its on the defense side of things. industrial equipment maker -- robotics says it is planning an ipo alongside establishing subsidiaries in north america and europe. -- electronics co-ceo will deliver a keynote address at the ces conference. paul: up next, the rivalry among u.s. chip makers heat up as the annual conference. comedies unveil new products that push into each other's turf. this is bloomberg. ♪

♪ >> one of the things that jumped out was this need for a better more unified cross device experience. i am pleased to announce we have acquired a pioneer and leader in delivering technology for advanced interaction between multiple devices based on different operating environments. >> our notebooks future the fastest processor ever with speeds up to five gigahertz, we are delivering an average of 1.3 x faster performance compared to the 5000 series across a wide range of benchmarks. >> the rapid expansion of 5g offers low latency cloud gaming.

we have teamed with at&t and their fast 5g network to bring the power of pc gaming to mobile devices. shery: the biggest u.s. chipmakers unveiling their plans. the semiconductor shortage showing no signs of easing. new research from susquehanna showing delivery times rose again in december to almost 26 weeks, the longest since at least 2017. our west coast reporter ed ludlow joins us for more. no end in sight when it comes to this shortage. edco -- >> almost every product in the semiconductor industry experience extension in lead times. the worst effect being and microcontrollers, which are so common across all kinds of electronics. they also look at specific names. 26 weeks is a long time. broadcom saw its time come down

a little bit, but it is still 29 weeks. the net effect of that is you have companies like apple on the smartphone side, automakers which we heard from tuesday, waiting longer to get the components they need to put into their products, which means it is taking a longer time to get to consumers. paul: u.s. automakers of course struggle with the shortage of semiconductors, but they are more optimistic about 2022. why? >> we had sales data from 2021 and as expected there was a double-digit decline from the same period a year ago and also in terms of sales volume. the outlook painted by hyundai, toyota, general motors, seems to be improving. they are starting to see a slicker supply of semiconductors and that is helping them bolster industry. there is this distinction between chip makers themselves

that are suggesting and reporting extended lead times and the customer the end user who are waiting for the products. paul: ed ludlow. let's check the latest business headlines. china mobile planning to buy back 10% of hong kong shares. the company says it will repurchase 2 billion shares after february 7 using available cash and working capital. they made the announcement ahead of its shanghai debut wednesday. it's $8 billion offering was the second largest after rivian ipo. the latest u.s. firm to delay its return to office plans as covid-19 cases surge. company says it will give u.s. employees two weeks notice before they start planning to bring a large number of staff back. it had previously said it was aiming for january 24. amex is requiring all employees to be fully vaccinated before

they can come back. shery: headed towards a south korea-japan -- ascii innovation to build two u.s. battery plants. suppliers include -- keep an eye on crypto related stocks after goldman analysts sets bitcoin at $100,000 is a possibility. are those stocks you need to keep an eye on. p stocks could move after north korea launched what appears to be a ballistic missile earlier today. [indiscernible] some of those stocks finished mixed in the previous session. coming up, avb says covid resurgence remains key risk for asia this year. we speak with albert park about

the outlook for the region. as we gear up for the market open. market opens in tokyo next. this is bloomberg. ♪

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♪ shery: welcome to daybreak asia from new york, i am shery ahn. paul: i am paul allen. major markets open for trade. asia-pacific investors weigh interest rate worries that drag u.s. stocks from a record of expanding decline in treasuries. oil rises with opec-plus agreeing to provide more production as global markets

tighten. too big to fail? huarong set to resume trading after a state backed bailout. shery: japan and south korea coming online. a mixed open for the nikkei. the nikkei being dragged lower by information, tech and health care. although financials and energy are gaining. that is a tech heavy index for the japanese market. with the yen still holding about 116 against the u.s. dollar. near a five year low as we continue to see u.s. dollar strength. not to mention less safe haven demand for the yen given less concerns about the severity of omicron and diverging policies within the federal reserve not helping the currency. we are watching virus concerns as we saw, tokyo seeing the most cases in three months. same thing in south korea where we are continuing to watch virus cases rise.

the -- down .3 percent after two sessions of gains for the new year. the korean yuan continues to weaken against the u.s. dollar for a fourth consecutive session. broad u.s. dollar strength. we are also watching government bonds in south korea because we continue to get rhetoric from the ruling party that they will implement a large-scale budget and that is stoking concerns of higher borrowing. paul: we have been trading in australia for a little over an hour. the market is flat at the moment. the -- had a blowout yesterday, higher by 2%. big sectors, financials and material sectors that lead the way tuesday, both powering ahead today. financials a little over half of 1%. the rest of the market is lagging. new zealand higher as well after a public holiday yesterday.

playing catch-up there. up .5 per -- the aussie, 72.40 against the greenback. let's bring in sean darby, chief global equity strategist at jefferies. we saw a little bit of a pullback in u.s. equities after a very strong data start the year. i guess volatility is the name of the game. is that one of the keywords in 2022? >> i am afraid to say it is. we had a year or so of markets focusing on returns, but as we saw in the last trading our in the united states, -- towards reducing the balance sheet in the united states is bringing about a steepening of the curve. this flip-flopping between bayer flattening to bear steepening i think is going to induce a great deal of volatility.

that is something perhaps we have not experienced for the last 12 months. certainly not for this cycle. the unit of risk that is going to be on most of people's minds. paul: what do you think would be a reasonable level of equity return to round out 2022? >> it varies by region. for the u.s., i think flat returns probably are going to be the measure of the game as the 10 year treasury gets up to 2%, given the valuations we have. reversely, asia does reasonably ok because in many parts the steepening of the yield curve is quite good news for places like japan, korea, taiwan and australia. they have a large representation of banks and financials and the do u.s. steepening seems to be transmitted almost perfectly

into their financial systems as well. i do not think it is as bad for asia as it is for the u.s.. europe will come out pretty well. rising inflation and the steepening of the yield curve, european equity markets are packed with financials and cyclicals and i suspect europe is probably in for a double-digit return this year after a stellar you year last year. shery: all of this depending on where inflation goes. we heard from neel kashkari talking about how low inflation could return. >> once the covid shot passes and things start to go back to normal and workers fully return and demand goes back to normal, i don't see any reason why the economy wouldn't revert back to low inflation regime we have been in for 20 years. shery: do you buy into that? what would that mean for yield? >> i do not buy into that narrative.

on monday, we did some analysis about how much the share of labor is taking from profits. we turned around back in 2018 during the china-u.s. trade dispute and for the first time in 50 years the share of labor relative to profit had actually picked up. we are coming into a period of time where the demand for skilled labor is insatiable. i don't agree with those comments i think we are going to see played -- we are going to see labor take in increasing share of profits. shery: thank you so much for those comments. we will be back and we will focus on china. plenty to talk about their. take a look at some of the stocks that are moving. we are watching toyota, all to do with those chip supplies and

how it beat gm when it comes to the top automaker in terms of sales in the u.s.. gaining more than 3.5% at the moment. we are watching -- partners and suppliers across asia. ford motor's stocks surged to a 20 year high after doubling factory capacity for its battery-powered powered f-150 lighting pickup. we are watching those stocks right now. mixed in the korean session. paul: let's keep an eye on crypto related stocks as well. open analysts said bitcoin at $100,000 is a possibility. -- all want to keep an eye on that. a bit of a mix yesterday but some of them are a bit lower. we will be watching defense and peace stocks. north korea launched what appeared to be a ballistic missile, we have that confirmed

by south korea and japan. -- or some of the stocks we keep an eye on as we get more information on the missile launch. for now, let's get to vonnie quinn. vonnie: north korea has fired an unidentified projectile into waters off its east coast, according to south korea possum military. japan coast guard says the object appears to be a ballistic missile. the launches north korea's first of the year, days after kim jong-un urged his estate to focus on easing food shortages and containing covid. pfizer says the government has agreed to buy 10 million courses of its covid-19 pill, on top of the 10 million u.s. had previously agreed to purchase. pfizer's pill was cleared by the fda last month. it has been shown to sharply

reduce hospitalizations and deaths from covid-19. the u.s. cdc has reclassified its travel advisory, telling americans to avoid singapore because covid levels are unknown. singapore joints the same category as afghanistan, north korea and syria. the -- rate has increased at its fastest paste in two months with nearly 800 cases reported tuesday. new research suggests delivery times for semiconductors lengthened again. susquehanna financial says leadtimes increased by six to -- by six days last month compared with november. that marks the longest wait time since the firm started tracking the data. some major chip suppliers bucked the trend and were able to reduce delivery times. 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 vonnie quinn. this is bloomberg. paul: still to come, an outlook

for asia's recovery with chief economist albert parikh -- albert park. up next, troubled bad debt manager huarong set to resume trading after a bailout. we continue that conversation with sean darby from jeffries. ♪

shery: still watching the china market open. seasonal liquidity demand, not to mention a wall of debt. let's ring back sean darby who says the country will experience -- what do you mean? >> because policy was not eased last year, we are going to see

sub trend growth going into chinese new year. but with the october 19, china posco meeting, i expect easing. probably more reserved ratio cuts and targeted fia which will bring gdp back somewhere close to the authority's forecast of 5.3%. which was interesting last year was that china's own bluebook for 2022 did highlight that covid had really disrupted the employment conditions, particularly for their services industry and that services it self still going to lag going into the first half of this year. i think it is going to be paradoxically they cliche game of two halves. it will be in the form of monetary easing -- easing. shery: i can imagine the

services sector will have it worst with the covid zero strategy they are implementing. what does that mean with how you position your assets in china? are there any parts of the market you like them as opposed to those you don't? >> of course we have the unknown known about the properties sector. one thing that did come out of the five-year plan was the very large drive towards digitalization. again -- pointed out that they are hoping something like 10% of gdp will go into the more value-added areas of digitalization. that does bode well for a lot of the software companies, to some extent the automation plays and electrification, which is a good long-term thing for china investors. in the short-term, expect the household composite rates to go

up in china as people are actually unable to spend and participate in the services economy. overall, the government spending direction is towards productivity gains. that story has cut quite a long runway. it does allow you to be out of the property sector without borrowing too much on outperformance. to what extent do you think this policy is affecting chinese businesses and can you see the government perhaps revisiting it? >> very difficult question. the way i would answer it is that the authorities do have the money that would have been spent on overseas tourism being hopefully spent on the domestic economy which to some extent could offset some of the

problems that have been induced by covid. secondly, the strategy in china again has been towards not only a zero policy, but needing effectively to raise the vaccination rates. if you are going to run with that policy, 100%. boosters are going to have to come through much quicker than authorities would have anticipated if they are going to continue to run this policy which is likely to go through october. third, china has -- which in itself is a tightening of financial conditions. maybe a precondition of running a zero covid policy will be to allow the rmb to depreciate over the next year, something we are finding is quite difficult to turnaround as well. if they carry on, they are going to have to counter policies on the reserve ratio just offset the draconian interest rates

they have at the moment. paul: sean darby, jeffries chief global equity strategist. thanks for joining. china's troubled asset manager huarong is set to resume trading later on. huarong almost collapsed before getting a state backed bailout. stephen engle is in hong kong. i guess in the end, huarong did prove to be too big to fail. >> perhaps too big to fail, unlike evergrande. a private company that is obviously going through it rigor mortis. huarong back in april, those shares were suspended because it delayed its full-year results, which ended up being a record loss of about $16 billion and was on the brink of collapse. that bonds tanked and

subsequently in this turnaround since april, we have seen state backed consortium of investors led by citigroup recapitalize this company to the tune of $6.6 billion. keep in mind, the number one investor in huarong is the ministry of finance followed second by state backed civic groups. in that sense, it was too big to fail. but, it is still big, just smaller. more streamlined. the new iteration of huarong, which was set up in the 1990's to dispose of bad debts amassed in the wake of the asian financial crisis. but then adventured into many more other financial industries and services. a largess that eventually led last year to the conviction and execution of its former chairman on charges of bribery and bigamy.

it was a fall from grace for huarong, however they have turned things around. and a statement they say they are returning to its core business. they are reducing capital consumption and therefore hopefully increase returns. we will have to see when the stock returns to trade. shery: we will be watching evergrande. not too big to fail. sales plunging in 2021. not surprising. >> not surprising of course. sales tanking following liquidity woes escalating from october. december contracted sales fell 99% year-over-year. for the full year, we got calculations of a 39% fall. up until october, they were meeting the previous years pace but in october the numbers started falling off the cliff.

people staying away from properties. there are over a million units across the country that have stopped construction and have not delivered. who would buy that right now? evergrande's woes continue. they did resume trading tuesday. the stock was up. traders are not sure what the catalyst for the overall uptake yesterday and property shares. perhaps short position covering. however, it is a battered sector that has a huge amounts of bill coming due this month alone. from deferred wages to its bond liabilities. shery: $197 billion. stephen engle will keep us updated on maturing obligations. up next, watching crude oil as opec-plus sticks to its plan for more output by february. this is bloomberg. ♪

shery:shery: fibrous concerns and opec-plus agrees more output. oil prices remain supported in the asian session. above $77 a barrel. su keenan joins us on these oil prices. what does opec-plus have to say? >>'s to their plan -- ease concerns of the leaning negative impact from omicron and they have certainly eased concerns by saying there would be a reduced estimate for a surplus in the first quarter. the plan was 400,000 barrels a day increase. they did that in january and have agreed to do that in february. as you can see on the bloomberg terminal. the reaction, very supportive. it was a bullish day in new

york. oil up almost 2% at the high point. we are now seeing in asia it is expanding past that. in london, u.k. traded brent crude, $80 oil for the first time in more than a month. the key takeaways in with the 23 nation alliance decided to do, approving the monthly increase for february. it produces estimates for first quarter surplus due in part to the weaker supply growth survival but also there have been production issues by several member countries. we talked about libya and nigeria, they have all recently struggled to meet higher numbers. in actuality, there could be less than 400,000 a month on the market. the new secretary general of kuwait oil -- surprising smoothness the changeover. that will take place in august.

the market is tipping back in its surplus opec-plus. but they are ok with that. they believe the market will return to a buildup normally. christ charts, typically we have opec in past years depending against a certain prices but they are comfortable with west texas intermediate heading above 77 and brent heading above 80. paul: in terms of prices, many analysts think opec-plus is confident prices can go higher, right? >> they do not see opec-plus concerned. barclays coming out and -- there forecast for $80 a barrel oil on average for brent crude. the return of pre-pandemic oil supplies from opec does take a while to get back on the market. there is not immediate concern about oversupply right now that would depress prices. there are analysts such as

barclays that believe opec acted in part out of pressure from the u.s., which is concerned about inflation and wants as much oil on the market as possible. interesting to note, rbc analysts say there are still two wildcards that could take oil much higher from here. the ukraine-russia tensions could flare up and possibly knock fuel supplies, take oil off the market. you've got the iran nuclear talks with major powers making progress, but if they are drawn out, that would also impact supply. paul: su keenan there. let's check the latest business headlines. china mobile planning to buyback 10% of its hong kong shares after it lists in shanghai. the company will repurchase to billion shares after february 7 using available cash and working capital. china mobile made the announcement ahead of its shanghai debut wednesday. it's 8 billion dollar offering

was the world's second-largest in 2021 after rivian. tencent has cut its stake in singapore e-commerce giant -- selling $3 billion in shares. the new york listed receipt tumbling as much as 30%. tencent sold shares at 208 dollars apiece, a discount of almost 7%. traders have speculated tencent may be planning to parrots holdings and arrange with companies which focus on new areas of growth. -- has rejected future retails pleat to quash arbitration by amazon and singapore. future had asked a court to declare the case illegal after india possible watchdog suspended that indian retailers 2019 deal with the u.s. e-commerce giant. up next, the 80 be downgraded as forecast in 2022. that was amid the fear of the spread of omicron. the region has got some cards up

its sleeve to support growth. we will be speaking with the chief economist of the asian development bank albert park next. this is bloomberg. ♪ 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. p- [announcer] imagine. having fuller, thicker, more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color

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♪ shery: -- vonnie: japan will bring forward booster shots for elderly people and maintain tight border controls as it tries to slow coronavirus. prime minister fumio kishida told a news conference that 9 million doses are available now. >> in order to guard against a rapid spread of community infections, our measures will now shift to domestic focus

while maintaining current border measures, we will further strengthen the framework for prevention and treatment. as for vaccines, we will bring forward third doses for healthy workers and the elderly. vonnie: bitcoin could hypothetically reach $100,000 as it continues to take market share from gold. em strategy cohead zach handel wrote in a note that even the digital coins consumption of resources will not curb demand. it coin climbed above 60% last year and searched 4007 hundred percent since 2016. the haitian pride minister says he has been targeted by bandits who tried to assassinate him. henri says his car was hit by gunfire january 1. media reported gunshots and at least one death you're a building where henri was due to give a speech. the prime minister took the reins in july after -- after the assassination of maurice.

vonnie: albany's district attorney says the allegation that cuomo groped a woman over a year ago is credible, but there was not enough evidence to proceed. last month, two other counties ended their investigations without bringing charges. 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 vonnie quinn. this is bloomberg. paul: thanks. i just want to get you an alert on the terminal. just looking at pmi's for hong kong and singapore. for hong kong, december economy 50.8. a reasonable drop from november when we have 52.6. singapore pmi by contrast rising. 55.1. strongly in positive territory there. a significant increase from the 52 reading we saw in november.

some divergent trends from hong kong and singapore factory activity. shery: we have had a bit of a mixed picture with north asia, asian stocks expanding. though indonesia dipped in the last few days. our next guest expects asian economies in general to continue making progress on recovery. let's bring in albert park who was appointed chief economist at the asian development bank last month. it was great to have you with us for the start of the new year. avb recently downgrading their forecast for developing asia. what drove the cut? >> we only downgraded projections slightly. it was recognizing some slower demand in china and elsewhere. we still expect growth next year -- or commit this year -- or, this year to be 5.3% in the region which we think is a

healthy resilient recovery. shery: it takes time to get used to it being this year for 2022. time flies for we have seen -- time flies. we have seen china regain hope and had strong recovery, now they are fizzling out. you were pointing out that is one of the reasons you have to downgrade your growth forecast for asia. what is going to happen with china? are we going to see the stimulus that many people are expecting? what will be the broader implications for the rest of the region? >> it looks like the chinese government plans to be accommodative, relaxing reserve requirements and interest rates. there was an adjustment recently. i think the policymakers in the central bank will ensure that the economy keeps steady progress come even though it is facing headwinds. especially with a recent upsurge

in cases and a zero covid policy , which is enforced lockdowns. we saw a city completely shut down recently. if that spreads to other parts of china and results in more widespread lockdowns, that could be an issue. if it is controlled, and given the leverage the government has, we still expect chinese growth to be on par with the region at 5.3% in 2022. paul: is potentially a relaxation of zero covid one of the most important levers policymakers could pull if they are looking to stimulate things? >> i think so. not just china, but broadly in the region and the world, countries need to start looking through the pandemic and thinking about how we get to a new normal where we can manage issues related to covid. and of course, increasing vaccination is the key to a back

to normal strategy. we are very focused on relieving both the supply constraints, helping countries get access to vaccines, but also trying to think of ways to convince hesitant people to get vaccinated. paul: as we got inflation rising in parts of the world, how do you see this impacting some of the most -- some of the poorest populations in asia? >> our forecast for asia are that inflation will remain modest. our projection is -- inflation. it has been less in more developed regions of the world. part of that is that -- sorry come asia broadly has suffered less from supply bottlenecks in recent times. but also, there has been sound macro economic management in the region. the long-term growth rate in the

past gate has been 3.2%. still below what is typical in terms of projections for the year. shery: does that mean the poorest and most vulnerable will not be hit as hard as other parts of the world given price pressures have not been as sharp? >> to some extent, yes. the poor consume a very specific bundle of goods. the extent that in some economies, food prices we have seen go up higher something we need to keep an eye on. more broadly despite our optimistic prognosis, we recognize the poor have borne the brunt of shocks caused by the pandemic and have suffered in a number of respects in terms of losing jobs, children out of school. we think it is important for countries in the region to start to address these problems.

it is going to be important for the intermediate terms to address the issue of inequality. we are really focused on the poverty reduction goals. shery: 2021 was not just about the inequality within countries, but inequality between regions. uneven recovery we have seen with north asia doing better because -- southeast asia not doing that well. we have seen more optimism that perhaps southeast asia will catch up. will that be the case? >> our projections are that south asia, led by india, will have the highest growth rates in 2022. it is because they suffered the biggest shock in 2000. growth across the region will be moderate. southeast asia, we project to grow by 5.1%. central asia, 4.4%.

it is still going to put them behind for they would have been without the pandemic. i think the prognosis is good. paul: let's have a look at that central asia number, one of the few regions where there is dramatic increase. is that because of the base effect? >> in central asia, it has been a little less hit by the pandemic. given the broader increases in demand in the region, i.e. think we have -- ia think we have upgraded it slightly. growth rates are still below the regional average. paul: all right. albert park, chief economist. the philippines stockmarket will apparently open today. this is according to the

chairman. tuesday, the philippine stock exchange canceled trading following a systems glitch. 43 brokers were unable to connect to the system tuesday. we are getting confirmation now that trading will resume today, according to the philippine stock exchange. china -- international says the recent surge in covid will make it hard for beijing to maintain zero covid without hurting the economy. we spoke to derek scissors who told us why. some china watchers are expecting better growth compared to 2021. >> a lot of people think in 2022 -- will meet and say xi jinping is the leader again. but the party will not how the rate a weak year economically. that is reasonable. they think that will happen through stimulus.

[indiscernible] >> our survey of over 3000 firms says that has not started yet. it did not start even in mid-december. some people are talking about it, but we do not actually have firms borrowing more toward ramp up economic activity in 2022. maybe that will occur. it has not occurred yet. you just heard about problems in china's financial system, china may be more cautious. >> how long will it take to actually see the benefits? >> that depends on how aggressive china wants to be. they have shown in the past that when they want to push the panic button, credit can spread quickly. you have a lot of optimism as people start borrowing that activity will pick up. i do not see that happening in

this case. china is looking to have a better second half of 2022. the first half could stay weak. what you will get is targeted easing, not a large surge in credit. that is going to take longer to work as the people's bank looks to see who is responding and who is not. i would expect the impact of looser policy is more a july-august event rather than a march-april event. paul: is the fact that the panic and has not been pushed suggest there is nothing to panic about? >> i think china's policy in 2021 has been wise. a number of countries have leveraged themselves into a difficult situation. i am not criticizing the chinese for being cautious now. i think there is risk hear from omicron. china practices a zero covid

policy. omicron is very infectious so it will be a challenge for them to hold the zero covid policy and you may see more shutdowns of large cities. that could cause economic weakness that the government is not expecting in the first quarter. i do not want to criticize china, they are right not to push the panic button that does not mean there is not a risk of covid. paul: let's talk about other risks. do you think the risks from the property sector have been effectively contained? >> i think the risk has been contained. i don't want to say the property sector is not going to drag down the broader economy, because it is. there is a problem china is still working through. you could say the property sector has nowhere to go but up, but it might not go up and that would be an anchor on economic growth. i do not think -- from the property sector is a serious danger.

you could have a major developer default, but everyone is pretty much ready for that now. i do not think it will come as a surprise and lead to assets which are difficult to value. as a macroeconomic problem, property continues but as i financial risk, it is pretty low. shery: derek scissors. up next, tencent cashes out $3 billion worth of shares in singapore less than a month after it handed out shares of jd.com as dividends. this is bloomberg. ♪

shery: alibaba losing .7%. we are watching this closely because we heard the daily journal, a newspaper, nearly doubled its holding of alibaba. we found that out by looking at a regulatory signing on tuesday. we are watching tencent trading in asia after stocks fell in the new york session. we heard tencent cut its stake in singapore's damien company by selling $3 billion in shares. paul: joining us for the latest,

fully paper? . >> it is interesting to see this. this was announced after trading was over here in asia and just before it opened in new york. the company basically said they were selling around 2% of what they owed. but they sold it at the end of the deal at a discount that was close to 7% to the close of the stock monday. $200. that led to a sharp decline of shares in new york during the tuesday session. that also led to speculation that tencent could be poised to sell more stakes in other different technology giant in china that are traded also in the u.s.. there was a reaction and other stocks as well. it will be interesting to see

the performance of those shares. and to assess how the market is going to take this trade. shery: why is tencent doing this? is it at all related to beijing's regulatory crackdown? >> that is correct. it is related to the crackdown. we have seen the company say before that this is basically they are going to invest this money in so many different initiatives in china and outside of china but they are also expanding in different markets. the money that they raised not just with the sale, but with the jd.com deal we mentioned earlier that was announced a month ago. this is part of this push that a lot of people are interpreting as a way for them to curb -- for beijing to curb anticompetitive behavior and to open up some very close ecosystems within the chinese technology. industry.

shery: thank you so much for that insight. setting things up as we head to the market open in china. and hong kong. paul, we continue to watch this story with how -- is doing because we are talking about tencent right now and it used to be asia's biggest company by market cap. ps mc now has taken over that crown. yesterday we were talking to morningstar's felix lee and he said even though ps mc has seen the surge because of chip supply shortage we are seeing right now, even when we have a glut, he will do pretty well. paul: tsmc had a good day in taipei. up as much as 4%, eventually sitting at 2.9%. investors are positive on the outlook from tsmc.

goldman sees the chipmaker growing at a faster pace this year as well. tsmc, tencent divide is one to watch. shery: next, chinese stocks kicking off 2022 with their weakest start in three years. we expect what to start today's session. ♪

shery: here is a quick check of the latest headlines. toyota shares seeing strong gains in tokyo after it beat gm as a top automaker in the u.s.. the detroit-based company lost its crown to its japanese rival which boosted sales 10% last year. with 2.3 million units sold in the u.s. in 2021, toyota narrowly outpaced gm who blamed chip shortages for slowing. the japanese carmaker says outselling gm is not likely to be sustainable. ford motor's stock surged after doubling factory capacity for its battery-powered f-150 pickup. ford set up to that fortis set to start taking orders thursday for the plug-in truck that has already received 200,000 nonbinding reservations.

the carmaker says it is capitalizing on the soaring demand by boosting output, but admits gauging the market has been tricky. morgan stanley is betting on offices in new york city. the bank has sealed the deal to take over space that houses the headquarters of blackrock, signing a 15 year lease for roughly 400,000 square feet at park avenue plaza. it is among the largest property deal signed in new york since the pandemic began. blackrock will move to -- in 2023. paul: chinese stocks saw their worst start to a new year since 2019. investors took profit on some of their most successful bets from last year. for more, we are joined by sophia -- 2021 was not really a great year for chinese stocks. was there profit taking we saw at the start of this year -- or is there a deeper story?

>> great question. 2021 was really a story of offshore versus onshore. stocks in hong kong and the u.s. were extremely punished by the tech crackdown. onshore, better than stocks in hong kong. yesterday, not a huge drop but a -- start to the year. pboc withdrew liquidity from the financial system. really not much of an impulse there to buy shares. these green stocks, ev stocks, anything to do with she sleeping 's push to have a cleaner energy industry did extremely well last year. that was the only thing that worked in china. it does make sense to take profit. i would say this weekend this month is key for liquidity. we are watching potential banks

closely and obviously the equity market is highly dependent on that momentum. shery: setting things up for us before the start of trading. paul, this is kind of out of the blue, but one of the things i regret about having lived in tokyo was not being able to go to one of those fish auctions. now we have the first tuna option of 2022. a ceremonial auction. guess how much the giant bluefin tuna sold? 202,000 dollars. paul: that sounds like a lot, but it is not. that is about 10% of the previous record. not a great auction there. perhaps a covid impacted auction. the winner there, they were so confident of winning the auction they sent out a press release before it happened, saying they will hold their ceremony to cut

the tuna at 10:00 a.m. that tuna will be served at the sushi restaurant later on. shery: i am hungry now. i miss japan. that is it for daybreak asia.

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is very strong and a democratic organization. >> that is quit a feat. i have seen estimates say that we'll get you through about a week or so. what do you do after that? >> be smart with resources. why not use a test strategically when you need them? how are we using them? a child is diagnosed with covid in the classroom. with give that entire classroom test kits so their parents can test room -- test the but we can determine if we can close down the school or just a classroom or with that particular area. in the past, you had one diagnosis and you want to close the entire school. that makes no sense. instead of using our resources and strategic fashion, the science has shown just because one child has covid in the classroom, it does not mean the entire school is infected.

we will be smarter and pivot and most importantly, defeat covid. quest good morning from hong kong. -- >> good money from hong kong, welcome to bloomberg markets china open. i am david ingles with yvonne man. >> our top stories this morning, asian stocks steady after a selloff in treasuries and u.s. talk stocks -- tech stocks overnight. they are resuming trading