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tv   Bloomberg Daybreak Australia  Bloomberg  April 25, 2021 6:00pm-7:00pm EDT

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>> good morning and welcome to "daybreak: australia." we are counting down to asia's major market open. shery: good morning. paul: the world pledges aid for india, with one million new virus cases in the past three day. the u.s. will send raw materials for vaccines and step up financing, joining european
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countries and trying to stem the outbreak. asian stocks set to kick off the week on a front foot after strong earnings in the u.s. investors will also be taking cues from the fed. the state owned bad debt manager says it is delaying again, needs more time to process results. shery: u.s. futures unchanged at the open, after we saw u.s. stocks gaining on friday on the back of strong economic data, output and service providers reaching a record high. wpi, not a lot of movement at the moment after a weekly loss, we had strong eco-data from the u.s. and europe, and also supporting prices on friday. india is weighing on sentiment. we have tech stocks kicking of earnings this week. microsoft, facebook, apple, also twitter and amazon this week.
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watch out for a meeting midweek. we have the u.s. first quarter gdp numbers coming out later on thursday as well, forecast show robust 6% growth. let's look at how we are setting up for the markets across asia. sophie: friday we tapped the worst week of the month for asia, fintech with a third weekly loss. we have asia futures with a mixed start. going into a week where earnings are top of mind and markets will be weighing the impacts potentially of a virus cases in places like india and japan, which made a shift to a services led recovery. improving exports, but citi cautions private consumption will likely remain weak given the uneven cover in different sectors. tuesday, we get the first quarter gdp reports from south korea and taiwan.
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pulling up a chart on the terminal. taiwan stockmarket the best performer globally in the last 12 months. edging out the kospi, seeing weekly wins of more than 70% over this time last year. paul: all right, let's get to our top story. india's virus cases worsening with one million new cases just in the past three days and the capital area facing a severe oxygen shortage. the united states has a joint european nations and pledging financial aid and raw materials to boost vaccine production. let's get the latest from our deputy managing editor, ros krasny. the u.s. had come under criticism for not doing more to help india, but it seems like they have come through with some help. what are we seeing? ros: it definitely has and i think this will not completely stem the criticism but it shows the u.s. is being responsive. the u.s. is not donating actual vaccines to india, it has opted
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to provide raw materials to india for it to ramp up its own production and provide funding to boost output at a particular company to the point where they could have up to one billion doses by the end of next year, which is really something. it has been mentioned again and again that the u.s. has this massive stockpile of astrazeneca vaccine, something like 40 million doses now, and astrazeneca has not even filed for approval to use those in the u.s. sending those to india and elsewhere may be a possibility according to dr. fauci. we also have the u.k. offering several plane loads of supplies to india, including ventilators. and the u.k. coronavirus cases are down about 90% from its peak , so they have quite a stockpile of material there.
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also they are getting some from france in general -- and germany. they know the coronavirus pandemic, you have to lift all boats, and for india's massive economy to be dragged down is concerning on a global basis. shery: at least we have more positive news in hong kong and singapore, it looks likely that we will have a step forward with their travel bubble. ros: exactly, and so many countries have been one step forward and two steps back the past euro more, and it seems like hong kong and singapore plan to announce as soon today, monday your time, about the air travel bubble. this is something that has been months in the making. as we know, these bubbles can deflate quickly. new zealand open to travel
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bubble with australia a little while ago and closed it again after one person tested positive. there can be some slips along the way. case-by-case, it seems like the news is coming out in a positive fashion. paul: sticking with travel news, the new york times reporting the eu is going to allow vaccinated u.s. tourists to visit this summer. what is the latest? ros: yes, a very interesting interview the times secured today with the european commission president. she suggested u.s. tourists could be back in europe this summer subject to having been vaccinated. there has been something like 200-plus million doses administered in the u.s. there are plenty of americans who would like to travel to europe. we have not heard anything in response from u.s. authorities, we are waiting here that, the ec
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might be jumping the gun. but it is a positive step and people all across the hospitality and travel industries have been waiting to hear. it is looking good, i think. paul: deputy managing editor ros krasny joining us from d.c. here in australia, perth is in a three-day lockdown after an overseas traveler who had completed hotel quarantine then tested positive. this as western australian has halved the number of arrivals to ease the strain on its quarantine program. ed, how did we get here? ed: that's right, the premier at the weekend said he is "at the end of his tether," and demanding dedicated isolation facilities for australians returning from overseas instead of relying on states and
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territories to run the quarantine programs through hotels. he hasn't kept the arrivals camp to 512 per week, which isn't great news. 30,000 us trillions are stranded overseas waiting to get home. -- 30,000 australians are stranded overseas waiting to get home. mutant strains are proving more infectious. this latest development, the person was released from a 14 day quarantine and spent about five days in the community while infectious. he caught the virus inside the hotel in perth, potentially from an infected fellow traveler. it was in an adjacent room and it came through the ventilation. shery: and the three-day lockdown in perth, is it working? ed: seems to be so far.
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thousands of test have been carried out, rigorous contact tracing. so far, only one close contact. the man flew to melbourne while infectious and authorities there swung into action with lots of testing over the weekend. so far, no community transmission in victoria state either. paul: flights between perth and new zealand suspended for now. in new zealand, striking display of just how successful the country has been in getting the virus under control. what have we seen? ed: that's right, a really good news story out of new zealand at the weekend. more than 50,000 people attended a live concert in auckland, the largest sports stadium, and incredible scenes. huge crowds to listen to the band, no masks or social distancing. just life back to normal. new zealand has been hugely
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successful and containing the virus, largely by shutting its international border and strong testing in contact tracing. it has only had 2600 cases and 26 deaths, and the scenes in auckland are in stark contract to the countries around the world back in lockdown to fight off another wave of the virus. shery: our australia and new zealand editor, ed johnson. we can get -- you can get around above other stories you need to doubt in today's issue of daybreak. we have breaking news at the moment, japan's ruling party has lost three parliamentary elections according to local news. these elections were seen as a test for prime minister sue goa -- suga. they are the first significant balance since he took office.
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there are some seats left open because of some scandals, also one because of a death because of covid-19. these could affect lower house elections that must be held by october. again, reporting that the ruling party has lost the parliamentary elections in japan. let's get over to vonnie quinn. vonnie: twitter has removed or restricted more than 50 post the past year at the request of the indian government. the indian express newspaper says they were critical of the handling of the pandemic. twitter says it reviews all legal requests. iraq's prime minister is blaming health officials for a fire that killed people in a baghdad hospital for covid-19 patients. more than 100 others were injured.
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key officials were involved. this as iraq grapples with a second wave of the virus. senator lindsey graham says republicans may be ready to back up to $900 billion in infrastructure spending, less than the $2.2 trillion present biden has proposed. he told fox news that rather than increase the corporate tax rate, there is a deal to be done over infrastructure spending. president biden is expected to address this when he addresses congress this week. an envoy is being appointed to me and where the military has -- appointed to myanmar, where the military has been killing protesters. a consensus was reached at a weekend summit. it remains unclear if the military will release a deposed leader. global news 24 hours a day on air and on bloomberg quicktake,
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powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. paul: still to come, a big interview and about an hour -- in about an hour with the fortescue metals chairman. next, the market outlook from advisors. what to expect ahead of a very busy week on the earnings and eco-front. this is bloomberg. ♪
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shery: shaping up to be a big week for tech earnings, let's talk about the future of rotation trades with our guest. great to have you with us. this chart on the bloomberg already showing outflows on it comes to the 222 etf tracking,
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the five-day outflows the biggest since 2000 ahead of big earnings. what is happening? ben: thank you for having us back. i think people are anticipating that we do have a cyclical recovery ongoing. the need for big tech companies has lessened, or at least people have the perception we could have an economy that is more open and more driven by services other than technology. that may be one reason in addition to a knee-jerk response to the capital gains news last week. on the other hand, if you look at these tech companies, i don't think these earnings will be poor. if anything, the estimates are compared to where they were a year ago and those were already behind. we are going to see big jumps in
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earnings growth for these companies this week. i think it is a positive backdrop for the markets. at the end of the day, very profitable company should be rewarded with higher stock prices. shery: also a big week with the fed meeting, first quarter gdp numbers for the u.s. as well -- where do you see the correlation between tech companies and yields going? ben: the correlation has been in place the next -- last couple of months and people have made a lot about it. what is the correlation? on the one hand, yields are rising because the economy is improving, and at the same time, people see the economy improving, switching over from a stay-at-home economy relying on technology to every opening economy. i think that's why the correlation is in place. as the story goes on with the pandemic and we are not out of it yet, the situation in india happens, and the correlation white not stand as much. in addition, -- correlation
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might not stand as much. in addition, two-year yields could have rate hikes in the future. i think the correlation is not going to stay that much when we get into the earnings for tech. yields are going up this week if you see another auction that doesn't work out well. paul: toward the end of last week, we did see a number of assets sell off, bitcoin a little weaker, equities were covered. on the news that there might be changes to the capital gains tax in the u.s. e look at this chart on the bloomberg, looking back historically, other chains to capital gains tax haven't had that much of an impact in the long term. does this matter? ben: i think for the stock market, it doesn't matter. it will matter to individuals
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and it might matter to what state you are in, it is specific that way. if you do raise capital gains taxes that high, the revenues for the government would actually fall. there are some trade-offs. i think by and large, many people expect this proposal might not necessarily make it, but like an opening bid for the infrastructure negotiations, seen after the republicans were leaning toward a larger infrastructure package than initially signaled. as we go through the negotiation, you will see negotiations on the tax proposals, and they meet somewhere in the middle. the stock market however should never be based on what capital gains taxes are, it is ultimately about what you expect on returns a stone fundamentals. i think it will be driven by the earnings and fundamentals and not so much by the capital gains tax news. paul: somehow that infrastructure plan is going to
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have to be paid for. i know you anticipate other changes around the taxes in the u.s., can you walk us through those? ben: no doubt as we go into yield this time with a package this time, if you finance it with large deficits like you have done so far, there may be a limit on both sides of the aisle. both democrats and republicans mason plea not want to do that. we also have a lot of unemployment benefits expiring at the time the infrastructure package will be coming together in the fall. there will be some proposal coming out on trying to them -- trying to maneuver with tax rates so you can more or less pay for it, but other things are in the works. there are bills on the works, like spending bills prior approved that are designated for infrastructure, like a highway and water bill and a few others like those.
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i think this is probably where we are going, we are going to get legislation that is approved in steps to get this package through. so that there is another way of paying for it. i think markets are taking it more about this will be coming at some point, infrastructure, and having an impact on the economy, and not having the debate on political uncertainty about taxes, for example. paul: all right, thank you for joining us. we have plenty more to come on "daybreak: australia," stay with us. this is bloomberg. ♪
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shery: a quick check of the latest business flash headlines. credit suisse reportedly believes a greenfield capital was a once in a generation company that could be worth $30 billion. according to the guardian, a
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presentation to the credit suisse board in january 2020 laned the finance firm would see x mental growth, triggering a nine figure windfall for david cameron. greenfield collapsed a year after the presentation. a banks fourth-quarter profits increased fivefold angst to earnings. -- thanks to earnings. domestic loans grew more than the sector average. chinese brokerage cicc is going on in overseas takeover and hiring spree, which could see assets jumped more than tenfold in the next decade. the investment bank it says it is looking for potential m&a targets in asia focus firms, including stock houses, hedge funds and wealth managers.
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cicc is looking outside china's market. they could gain a 50% share in the next 10 years. cat are -- qatar could be funding a natural gas project. it is seeking to sell between $7 billion and 10 billion of 5, 10 and 30 year notes that would make it one of the largest corporate deals this year and one of the biggest of any kind from emerging markets. paul: let's have a check on markets at the moment, australian futures are flat right now. we had a positive close in the u.s. at the end of last week, futures engine plane -- futures in japan flat and not much in the rest of the region either.
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iron ore on the five-week run, the highest in 10 years. it might be worth watching some of these materials trucks -- stocks in australia when training gets overweight. new zealand is closed today for i holiday. let's take a look at what is ahead on the australian diary. the u.k. australian agreeing to a mostly free-trade deal expected to be finalized in june. that is the latest from britain's post-brexit campaign to secure trading partners. global management is eyeing a bid and we have that report from the australian newspaper. we also have a big interview coming on later this morning, we will be speaking with the fortescue group chairman about his international hunt for green energy assets. we have that interview coming up
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at the top of the next hour. shery: and plenty of things to watch out for this week, including earnings again in high gear, tesla kicking off the week . we also have alphabet, microsoft and amd on tuesday. facebook and apple on wednesday. twitter, amazon closing out the week. in asia, we have other companies as well. watch out for the meeting midweek. we are talking about chair powell already saying policymakers are in no hurry to withdraw support even as the u.s. economy rebounds, so we want to listen to more details of this in his commentary. on thursday, we are getting first quarter gdp numbers out of the u.s.. the forecast is for growth of 6%, helped not only by monetary policy and monetary stimulus, fiscal measures. plenty more to come.
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>> the chinese distract -- distressed debt manager, huarong , says earnings will be delayed again. mounting worries over potential defaults by the firm. let's cross to tom mackenzie in beijing for more. why this delay and is this something to be worried about? tom: paul, the company, china's biggest distressed debt manager, the biggest bad bank, putting out a statement over the weekend saying, its auditors needed more time to review a transaction.
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they did not give more details. they said as a result they would miss this april 30 deadline to publish their 2020 earnings results. it was a similar rationale used when they miss their preliminary earnings toward the end of march that led to a two-week selloff in the dollar bonds and the previous action to a ratings review by fitch and moody's other debt for potential downgrades. as you say this is likely, the statement over the weekend, to cause and reignite jitters among investors, particularly in huarong's dollar debt. >> what our options chinese regulators are looking at for huarong now? >> according to bloomberg reporting, the finance ministry, the majority shareholder in huarong asset management is
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looking to move its state to a unit of the country's sovereign wealth fund and that is one option. we also know the country itself, huarong, is looking at a sweeping overhaul of the business to spin off non-core parts of the enterprise to try to avoid a debt restructuring which is the key issue for bondholders and the key concern. the other piece of reporting from bloomberg involves the big guns coming out, the big bazooka solution, the pboc taking on board, china's central bank taking on board $15.4 billion of huarong's debt, move to try to clean up its balance sheet. a reminder that this is a business, huarong, that now has an outstanding $42 billion worth of bonds, that are due. 17 billions -- $17 billion are due at the end of, 2022 so there is an urgency for a solution and those are some of the issues,
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and potential solutions or options we know according to bloomberg reporting, that they are looking at. >> markets coanchor tom mackenzie in beijing. let's get to first word news with vonnie quinn. vonnie: the u.s. is the latest nation pledging a two india to stem the world's biggest surging covid-19 cases. the biden administration sending raw materials from vaccine production and financing support. india reported one million new cases the past three days and the prime minister narendra modi, is imploring residents to get vaccinated. the biggest campaign in history is underway with one million doses administered -- one billion doses a ministered across 172 countries according to data by bloomberg, to vaccinate 6.7% of the population. 19 point 2 million doses a day
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in the u.s., 229 doses given so far. indonesian authorities say they found the navy summary that disappeared five years ago and declared all 53 crewmembers on board dead. it was located below depth it was built to withstand. the prediction was oxygen would be depleted by saturday for the vessel was located and there are indications the crew tried to escape. china's banking regulator are encouraging banks to boost loans to small companies 30% this year. the china regulatory 30 says on its website large lenders should also try to grant loans to more first-time borrowers. the regulator wants to boost in support for manufacturing and its strategic emerging and supply chain sectors. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists
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and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. paul: one of hong kong's prominent activists, nathan, says he is encouraged by the biden administration addressing hong kong's political situation with beijing. seeking political asylum before the national security laws imposed last year. we spoke with the chief north asia correspondent, stephen engle. >> anyone who steps too far, if you look at that chinese government promise to people in the 1980's saying we will eventually enjoy democracy and autonomy. hong kong people are just asking for very humble demands, to get the chinese government to do what they have promised. i think that is basic responsibility of the regime to its people. for hong kong people, this is always asking the humble demands. >> so, no mistakes were made, in hindsight? sulfur flexion?
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-- self reflection? >> in hindsight generally not the mistake of hong kong people. a lot can be explored. maybe a lot could not necessarily be done. >> in recent days i interviewed a number of senior people, pro-establishment, all reemphasized their point, that there were hands from abroad particularly the united states, that influence to this? and perhaps coaxed protesters on and also financially supported them? >> this is in the geopolitical interest of the america runs, america to do that and on the ground i see compatible evidence of such action. >> how do you respond to those criticisms because that is a recurring narrative coming from the camp here, now. >> those are completely false.
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and those are the tactics. the demand for hong kong people, they portray hong kong's protests as initiated by so-called foreign interests instead of independently by hong kong people so they can break up the demands, the legitimate demands of hong kong people and claim it is just some, like, conspiracy initiated by countries that want china to fall. and that is not true. hong kong people self initiated all those protests and up until now they have been recurring those narratives for years. there has been none evidence on what they have said. so i think this qualifies to be classified as conspiracy theory and a smear tactic to hong kong's democratic movement. >> after you arrived in the u.k. you did meet with the now former secretary of state mike pompeo.
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what would you like to see now, from the biden administration? >> the china policy is one of the few if not only, policy areas, that is continuity in between to a ministrations. in the current biden administration, they have been conducting china policy in much more multilateral way. they have been deploying different strategies, including coordinating sanctions, to chinese officials. in the previous months. that is a good sign. we really have to unite those international democratic communities to put pressure on china, so we can hold them accountable. instead of letting them do whatever they want no consequence. so i think the biden administration still has a very strong china policy and the world has to be united and stand up against the authoritarian expansion of beijing. it is one of the first steps. we are still pushing for a lot of other measures like sanctions
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not all the on chinese officials but hong kong officials, and also appealing for other parts of the world to decrease reliance on china. and to be very strong on human rights policy toward at. so i think there are -- toward it. so i think there are a lot of possibilities to explore and a lot to be done by the international and democratic communities. shery: hong kong micro seat activist nathan -- democracy activist nathan law speaking exclusively with bloomberg. also our interview with the hong kong deputy commissioner. we will continue to reach out for all sides of the debate for comments on hong kong's future. coming up, bitcoin is on a slide again. a founder and managing partner joins us with his outlook for cryptocurrencies and nfte's. this is bloomberg. ♪
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shery: time for new calls ahead of asia trading day with sophie kamaruddin hong kong. the global industrial come back driving metals to multiyear highs. what are analyst think about the sustainability of this rally? sophie: in the increasing demand we see for cars and electronics and infrastructure spending, the rally in metals looks to be
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underpinned here out along with anticipation with production cuts across different types of industrial metals. for copper we have seen prices double. china's top, junkie copper -- xianxi copper expecting prices up. at goldman they see copper at 11,000 the next 12 months. when it, comes to currency plays investors looking to exporters of copper, iron ore and nickel with president biden's infrastructure planning -- spending plan seem to provide a left. the -- the lift. the loonie and aussie and peso as well as currencies and the metals themselves -- currencies like to commodities as well as the metals themselves. paul: falling in asia at a 48 handle now, do we see weakness here? sophie: pulling up the chart on the terminal we do seem to have
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bitcoin correcting below $50,000 which bloomberg intelligence says, is normal for ball markets , as excesses are flushed out. at cornerstone macro the view there is we could see bitcoin dropped to $40,000, if prices go below the trendline of the past six months. either way expect volatility ahead for bitcoin. paul: joining us for more analysis on bitcoin is the founder and managing partner of qinetiq blockchain and cryptocurrency investment and trading firm. he has been cryptocurrency investor since 2013. we were talking about bitcoin $ 48,500 now and falling but we have been here before. what is your long-term outcome look -- outlook? >> i think we will see a bitcoin rebound. correction is normal in our space. there are two rules and crypto, one is the price will go up and
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down of the second rule is in the long-term the price will always go up. we have seen this over and over in 2014, 15, 17 and 18. we expect bitcoin to reach $100,000 around the third quarter and as late as the fourth quarter. paul: what about other assets related to cryptocurrencies? we have a chart on the bloomberg terminal that indicates bitcoin's decline is being felt elsewhere as well, in bitcoin and cryptocurrency-related equities. where you see the action regarding the space in terms of agent crypto stocks -- asian crypto stocks? >> with a coinbase listing i think they paved the way for a number of public listings. there is incredible public market appetite for blockchain and crypto associated stocks. i think we will see amazing companies coming to market in the coming months.
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things like some of the largest financial providers in the blockchain space, like block fi, and exchanges like, giants and the space and we expect them to come to market and help stoke and encourage the public market appetite, to get exposure to blockchain as well as bitcoin. shery: we have seen appetite for non-fungible tokens as well, but nft's now tumbling. where do you see this going? >> they are amazing and not as well understood as people think. prices have been dipping and this correction is normal. in any emerging art market. we saw this in chinese contemporary and asian contemporary art around 2010. there is going to be correction as things were overbought and the quality was not there. now we are seeing a return to a floor, a floor of value and a floor of believe an
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understanding of what nft's are as artworks and content. i think as artists like the most famous and well-known and expensive nft artists in the world, we will see him continue to rise while others fall, simply because he is so well known as -- and has established himself as the poster child and vanguard of the new paradigm of art. he has a new drop this weekend i believe on nfte gateway and that will be a test for everyone in the world to see, do nft artists hold up to the hype? i think with his new drop -- is new drop the answer is yes. shery: what about regulatory concerns? it seems that led the latest wave of selling, with the u.s. treasury and different countries now talking about more regulation, and perhaps even their own digital currencies. long-term, how can you be so optimistic about where the crypto is headed? >> regulation is not new in
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crypto. too many regulators' credit especially here in hong kong and in the u.s., people like commissioner hester pierce who have been very aggressive and engaged in terms of thoughtful regulation, have been doing their best to recognize the value of crypto and of the industry and the number of jobs it creates globally. and especially in developing countries, that crypto, thoughtfully regulated, can be a net positive for the world. regulation has been being developed for years now and i think we are just really starting to come to maybe a good point or golden age of crypto regulation, where it is assumed that this is happening and we all want to find safe ways to trade and store and bill businesses, where -- build businesses.
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where innovation is not stifled and the consumer is protected. paul: in terms of innovations, you're watching handshake. why are you watching it? >> handshake is one of the most exciting innovations and i like to say it is one of the only crypto's that could be bigger than bitcoin. handshake is a centralized domain name which allows you to own, instead of owning .com, and have to read that from go daddy,, you can actually own .paul, and be your own business and sell computer.paul, and this ability to gain control of the top level spaces of the internet, the domain name space is a paradigm shift which will affect everything from censorship to decentralized delivery of content. i think it will be the new architecture for the internet to
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come. stay tuned for handshake. prices have been dipping along with everything else went think it is an incredible opportunity. paul: thank you for the flattery, but i am pretty nation. -- niche. i want to talk about another frontier for nft's, gaming. >> nft gaming is growing by leaps and bounds, now it seems every major player is talking about a blockchain play. we are invested in a company called forte, at the forefront of pioneering blockchain and crypto assets in existing games. they work with 25-30, existing publishers, game publishers who have tens of millions of users, and they are enabling them to build crypto assets into their ecosystems. imagine you could play her favorite game on your mobile, and it would not be a crypto game but you would be able to buy a sword and literally on
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that sword. you could transfer it or sell it, and you would not be beholden to the game platform to say yes, you can do this or no, you cannot do that. sovereign ownership of virtual assets is coming and i think companies like forte are leading the charge. shery: founder and managing partner of kenetic, thank you for joining us. tune into huarong -- radio -- tune into bloomberg radio, and listen on the app or plenty more had. just plenty more ahead. ♪
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>> a quick check now the latest business flash headlines. china's huarong 2020 results will be delayed again, this time passed the april 30 deadline, another headache for nervous investors worried over potential default. auditors say they need more time to finalize an unspecified transaction. huarong reiterated its operations are stable and all lines of business are running normally. they missed their march 31 deadline to announce per limitary numbers. another firm has taken out $218 million charge due to what it
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classed as notable items including provisions for refunds and litigation as well as costs associated with ending the relationship withioof. charges were offset by its relationship with coinbase and selling a holding. cathay pacific set to shrink his order of boeing's 777 x aircraft and report the airline will purchase 10-15 aircraft instead of 21, saving billions of dollars. the airline says its order would be delayed but would not confirm reduction in the number of jets. shery: the repercussions from the archegos fiasco continues for that chinese tutoring firm gfx, in which the fund was heavily invested. they put the stock on a wild ride and cost its billionaire owner larry chen to lose most of its performance -- fortune.
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gfx was facing challenges. su: yes the stock is been on a wild ride since january but the past few weeks in particular have been turbulent for gsx and its founder, larry chen, a former schoolteacher from a poor chinese village able to rise to one of the worlds richest people. with online tutoring firms stock'down 80% since january, it plunged in january when hwang's archeogos capital with a heavily leveraged position defaulted on a margin call and it force shares to be dumped on the market. gfx has since reported a wider than expected loss -- gsx has since reported a larger than expected loss that is because critics and short-sellers to pile on. the fortune plunged 81% from $13 billion at the peak in january to $3 billion.
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paul: how about the outlook for gsx, what are analysts saying? su: it is mixed and j.p. morgan chase did just lift its rating on the company earlier this month. larry chen himself had an offer to pay $50 million out of his own pocket to prop the stock up to show how much he believed in it but it has not helped. the stock fell 9% last thursday, as the company was holding a virtual event. it has been battered throughout the year by short-sellers such as carson block's muddy waters who question the firm's legitimacy. this month was another big blow from grisly research, which issued a report questioning qualifications of teachers used by gsx. gsx called the report erroneous and chen has tried to sound optimistic. but there have been a lot of headwinds for the company and it
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is being closely watched. shery: bloomberg's su keenan in new york with the latest on the fallout from archeogos. a wild ride, we may brace from one from test out with a report monday. we expect -- from tesla when they report monday. we are expecting a move on options pricing 7% in either direction. we are getting forth -- first quarter earnings and investors watching if test that will be able to hold onto its lead in ev's, after a seven headed percent jump last year, -- a 700% jump last year. paul: it could be a big change coming with a 7% move in either direction, not helpful information for investors, is it? we will also watch regulatory credits, as other traditional automakers start producing ev's, they may not need to buy as many of these and this is been a small but reliable revenue stream for tesla.
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we may hear more, and questions about lingering mystery over the recent crash of a model s and whether or not autopilot was involved. still to come, we speak exclusively with the fortescue group chairman about his hopes for international his hunt for international green energy assets. this is bloomberg. ♪
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it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today.
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>> good morning, i am paul allen in sydney. we are counting down to asia's major market open. shery: welcome to "bloomberg daybreak: asia." new zealand markets are closed but we await the open of china, japan and south korea in an hour. let's go to sophie kamaruddin in hong kong. sophie: this morning, asian stocks are set for big start as


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