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tv   Bloomberg Daybreak Australia  Bloomberg  July 22, 2021 6:00pm-7:00pm EDT

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haidi: a very good morning. welcome to daybreak australia. sophie: we are coming down to asia's major market open. shery: good evening from bloomberg headquarters in new york. tech drives u.s. stocks to the brink of a record as traders digest a day-lewis of data and earnings reports to -- a delucia of data and earnings reports.
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shery: warnings from christine lagarde that the ecb will not tighten early. haidi: the big day is finally here. the lippy opening ceremony hours away -- the olympic opening ceremony hours away. shery: it is a picture across wall street. nursing u.s. futures rising a quarter -- we are seeing u.s. futures rising a quarter of a percent. a record for a third consecutive session. we have the old playbook resurfaced. the cyclicals rally we saw in the past two days coming to an end. the 10 year yield falling. treasuries rallying. the dollar not moving that much. we are watching the euro given that it has failed to hold onto those gains after the ecb meeting and the revisions to the right guidance. wti losing 2/10 of 1%.
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this after rallying in the new york session. there has been more optimism about the recovery only here in the u.s. but broader globally . take a look at this chart on the bloomberg. i want to talk about the u.s. leadership. it is really interesting because we are seeing it at a record high when it comes to the ratio of the s&p 500 and the broader s&p global ex u.s. markets ratio. it rose to a record high earlier this month. we are now seeing at rally again this week. there is a lot of optimism about the u.s. market. haidi: how long have we been talking about u.s. exceptionalism when it comes to market dominance him? it looks like that is continuing. in asia, lots to look ahead to. we are seeing 220 major asian companies reporting earnings. earnings expectations coming in
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at record highs. in australia, looking at earnings expectations expected to top the highest in 13 years. quite a bit of optimism despite as we continue to see the uncertainty of the delta variant. shery: in the u.s. as well. 35 percent of s&p 500 firms that have reported have beat estimates. let's discuss this with our next guest. looking for better returns in equities. she sees cyclical sectors in coming quarters. let's bring in the wells fargo institute head of global asset allocation. great to have you with us. what does this say about the global rally and where the u.s. is positioned this year? >> we are in the middle of earnings season. we think one of the most underappreciated things about the equity markets right now is just how much these earnings have risen and how much analysts
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have had to revise their earning estimates of. we started -- earning estimates up. shares have since raised their estimates closer to our estimate of $200 per share. really big revision. prices had moved higher. earnings have moved higher as well. we think valuations remain attractive. shery: today, we were expecting positive data on the jobs front the jobless numbers surprising to the downside. increasing more than expected. are you worried consumer caution will resurface given the delta variant? >> it is possible. there are a couple things we are watching. obviously the delta variant and how pervasive that is in consumer psyche. also, we are watching the
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recovery move from recovery to expansion. we are seeing a shift. that shift is in our opinion going from great to really good. we expect u.s. gdp to grow seven point sent -- 7% this year and downshift to 5.3% next year, which is still really good. we are not surprised to see these mixed results coming in. some misses at this point. as we move from really strong economic data to economic data that is good. haidi: talk to me about the macro investment environment mosaic. what are the key elements and the divergence of these elements
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creating opportunities. >> we are seeing a backdrop of strong stimulus. lots of liquidity in the market. credit is relatively easy to get for corporations. consumer sentiment has been moving higher throughout this phase of post-pandemic reopening. we see all that combining into the strong macro mosaic that you said. we think that creates opportunities not only for u.s. large-cap but also for the cyclicals and for small-cap companies in the u.s. and for emerging markets. haidi: what role does crypto, bitcoin or other cryptocurrency play in asset allocations? >> we are looking at crypto as a diversifying asset class within
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a portfolio where the investor is willing to take on significant risk. we do think there is a place for crypto in certain portfolios, but certain -- but making sure investors are aware this is a new asset class. it can easily see 50%, 80% swings in either direction. the volatility is incredibly high. there are great diversifying properties. haidi: always great to have you with us. the wells fargo institute head of global asset allocation strategy. we have bit alert crossing the bloomberg when it comes to jp morgan's wealth ambitions. planning to doubled the amount of advisors to 1000. this coming on the back of what we know about j.p. morgan planning to more than double the advisors in its traditional
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broker business as the giant is flooding and expansion across that unit. it has been tense competition among big players when it comes to buying for the rich clientele. the bank will be doubling advisors in the wealth is next to 1000. from 500 to a thousand should that is according to the head of jp morgan u.s. wealth management arm. trying to work across the retail branches as well. did globali quickly become one of the worst ipo's of this year among news china is mulling additional penalties. we know that a number of the big ticket ipo's have not performed very well this year regardless of whether there has an a link to china or not. the risk aversion when it comes to companies like didi, looking
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at other companies in the pipeline, ever-growing as we talk about penalties and regulation. shery: seven james companies listed here. on average, they are 9% below their ipo price. the performance has been pretty mediocre. we now have another source of anxiety given we are now hearing that we could face -- that they could face unprecedented penalty. let's bring in crystal from new york should we sa -- from new york. we saw didi fall to another record. what are the penalties they could face? >> the most extreme case, they can even get delisted. facing a class action lawsuit and exchanges in the use -- in the u.s.
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less than a month after going public, that is a very big punishment. on top of that, you also have the chinese government has taken the app down from chinese stories. you are not getting new revenue. for investors in the u.s. that bought into the ipo, they were promised growth. they were promised tapping into the entire chinese population to a growing class of people who would afford. now you are seeing a company no longer seeing growth and potentially facing a lot of entities. -- a lot of penalties. haidi: how would it compare to the record to point a billion-dollar find given to alibaba -- fine given tally bubbly echo is it almost a best case scenario? they are apologetic and then able to get back into the regulatory good looks and move on?
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>> being apologetic helps. the other issue they are facing is data. they have to solve the problem of data. the app has already aggravated all of this. for ant, they have the option of selling off part of the business. that is not controversial. didi is already listed. for them to fix this issue, it will be extremely public. it will move the stock whatever they do. it is extremely interesting what is going to happen here. just being a public company, class action is always a topic of discussion. whether investors in the u.s. will let this go or team up with earlier, that is something we will be watching very closely. haidi: sources telling us that fine is likely to the more than for alibaba.
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it is busy when it comes to new listings in asia. what you watching? sophie: it has been a busy week for a pack. -- for aipac. china telecom given the nod to list in shanghai. this friday, futures are mixed. we do have futures mixed while kiwi stocks are gaining ground. this after two gains for regional stocks. reliance industries due to report this friday. pulling up the chart with a focus on australia, the asx 200, they are seeing hitting a 13 year high. the sector set to the best year
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of earnings since 2008 and miners have helped the asx 200 hit a fresh record high. it is the best run in 13 years. strong iron ore exports have helped offset the fiscal hit from australia's lockdown. until there is a larger deficit where there is a pickup in yields, blueberry recommends the rpa is not likely to adjust is pandemic bond buying. amid the uncertainty, we are the aussie 10 year yield set for a fifth weekly drop. shery: still ahead, big tech earnings season in full swing. we will dig into intel, twitter and snap results. just ahead, we are coming down to the long delayed start of the olympics. we will check the mood in tokyo next. this is bloomberg. ♪
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su: you're watching debris goes dry. christine lagarde says the ecb has learned from errors of the past and will not hinder the current economic recovery by withdrawing emergency support to early. the ecb president made the remarks as the central bank implement the new policy measures. they include tying policy shifts more tightly to the 2% inflation goal as well as being patient if growth exceeds that target for transitory period. the white house has accused china of being irresponsible and stonewalling a phase two world health organization investigation into the origins of covid-19 including a possibility it came from a lab in wuhan. beijing says it will not participate in any inquest
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insisting there is zero evidence. global leaders want to examine further. on the recent spike in u.s. cases, no sign of letting up as the delta variant continues to spread. the cdc says national cases are likely to rise to 307,000 for the week ending august 14. that would be up 39% from last week. florida and misery are two especially hard-hit states and those infected are skewing younger. u.s. senator amy klobuchar has introduced a bill to make online platforms including facebook and twitter legally liable for misinformation about health issues such as covid-19. the democrats says the pandemic has highlighted how lethal inaccurate information can be. the proposal comes less than a week after president biden said. i and vaccine information was killing people.
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-- said false virus and vaccine information was killing people. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: the summer olympics opening ceremony happens later friday in tokyo, kicking off an event that was supposed to symbolize the best of humanity. after being played by delays and uncertainty, thousands of athletes can breathe a sigh of relief. even as the cauldron is lit, the challenges for organizers and officials will only intensify. juliette saly is a recap of what it took to get the olympics to the starting line. juliette: a global sporting specular in the -- cloak sporting spectacle in the middle of the worst health crisis in a century. even fears a global gathering of 90,000 athletes, officials and volunteers could become a cauldron of covid, measures are in place aimed at spreading a
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super-spreader event. most athletes are vaccinated but they will have to test daily. socializing and group meals are banned. win or lose, athletes must leave japan within 48 hours after their last event should japan want to deal a fix to mark a turning point for humidity. a light at the end of the tunnel for a world stumbling through a second year of the pandemic. tokyo is under a state of emergency through the entire game is. thousands of athletes are set to compete in empty stadiums with no fans, families to offer support. the prime minister's little fortunes are tied to a successful games, which was supposed to symbolize japan's recovery from the 2011 earthquake, tsunami and nuclear disaster. officials have had to brave a cascade of calamities to get to the opening ceremony and an uncertain legacy awaits the entire movement at the finish line of tokyo 2020 and could
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mean a very different looking games in 2024. haidi: let's get the latest from the olympic stadium. how are things looking and feeling on the ground? >> the big day is finally here but front and center remains the rising covid cases in tokyo. tokyo almost hit 2000 daily infections yesterday and that is creeping up to the daily record we got six month ago. that has been something to watch. tokyo 2020 organizers have also been releasing their own set of numbers and that is for the counting of those related to the olympic games themselves. 91 people have tested positive this month.
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which of course includes athletes. some even ending their lipid dreams before -- there olympic dreams before the ceremony begins. we are keeping an eye on the covid cases. there are already signs covid is affecting the olympics. i went to the men's soccer match last night between south africa and japan. three members of the south african team had tested positive over the weekend. we did not even know if they would play until hours before the match. thankfully, the pcr tests came back negative and it did go on to during the post -- did go on. during the post game press conference, the coach told us that when people see the south african team coming, people run away. the appreciated japan staying to shake their hand. shery: despite the covid concerns, their other scandals brewing. the opening ceremony mired in controversy with the dismissal
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of the composer as well as the director of the event. what is that about? >> he is the creative director of the opening ceremony. we learned yesterday he got fired from the position after a video resurfaced of a skit he did as a comedian almost 20 years ago. that has put another damper on the opening ceremony and the tone of the olympic games as a whole. this was something i am sure the organizers were trying to avoid because we already had another director step down prior to him. shery: i think he had made some fun at disabled classmates at school. kurumi mori as we await the opening ceremonies of the olympics. christine lagarde said the european central bank has learned from past errors and will not start tightening to
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early. we will have more on that. this is bloomberg. ♪
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shery: the european central bank is committing to ultra dovish monetary policy and will maintain its 2% inflation target until the pandemics finally end s. kathleen hays is here with more. christine lagarde went to great lengths to explain the framework. what were the takeaways? kathleen: for a year and a half, the ecb worked on this policy framework. they came back on july 8. christine lagarde announced instead of targeting inflation under 2%, it is at 2%. today, it was about how is this going to work? they were saying in the policy
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statement underscored repeatedly by christine lagarde, no rate hikes until inflation has reached 2%. it must hit 2% before the end of the three year projection. -- projection period. inflation must be seen to be stabilizing at 2% over the medium term kid a lot of peoples -- medium-term. a lot of people said this means no rate hikes for years to christine -- for years. she kind of pushed back about freezing it that way. listen to what she said. >> it is not intended to keep interest rates low for longer. it is intended to deliver on our objective. it is intended to reach the target of 2%. this is what we want to do. the quicker we can do that, the quicker we can use those other
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tools we have not used a lot in the last few quarters, which is the interest rate. but we are not there. kathleen: given the ecb sees inflation falling back to 1.4%, that is not suggest rate hikes anytime soon. and the fact that lagarde talks about the pandemic, it still hangs like a cloud. haidi: we saw the market sorry in the weight. we have seen the german 10-year yield headdown for a fourth straight week. to begin any guidance for the market? -- do we get any guidance from the market? kathleen: christine lagarde said it would be premature to begin looking at that while the pandemic is still so present. bloomberg reporting on the two
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dissents. word about the commitment to keeping rates low. officials agree the new guidance only applies to rates, not bond purchases. taper not on the table. haidi:
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> you are watching "daybreak australia." i am su keenan with the first word headlines. we are told chinese regulators are considering serious, possibly unprecedented penalties for didi after its controversial initial public offering last month. sources say regulators see the ridehailing giant's decision to go public despite pushback from the government as a challenge to beijing's authority. punishments could include possible fines or the withdrawal of didi's u.s. shares.
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president joe biden says sanctions leveled on -- it's interior ministry. it's the beginning of u.s. retaliation. it comes after her venice crackdown following large antigovernment tests last month. biden says he condemns mass detentions in sham trial's which he says cubans are being subjected to. even rights groups say up to 600 people have been jailed over the latest protest. a technologies company which handles web content delivery says it has resolved an issue that caused a service disruption, affecting several globally used websites including draftkings. it says the disruption was not related to a cyberattack and it says the snafu was related to a software issue that translates domain names into ip addresses. tokyo olympics organizers have sacked the director of the
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opening ceremony the day before it was set to take place. they say it's because of the discovery of a 1998 video that shows kobayashi joking about the holocaust as part of a skit put on by the former comedian. with the director out at the last minute, it is unclear how the opening ceremony will be handled. finally, to american football, nfl teams have been warned that in the event of a covid outbreak among nonvaccinated players, they could be forced to forfeit the game. the commissioner, roger goodell, says in a memo obtained by the associated press that if that happens, players on both teams would not get paid that week. he says the nfl does not expect to add an extra week to play games that cannot be rescheduled within the regular season. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: scott morrison has
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apologized for the slow rollout of australia's vaccination program. australia reported its worst daily numbers. paul allen following the latest developments. we had 124 new cases on thursday, an alarming amount of data out in the community and today is expected to be even worse. paul: because of that alarming number, 48 of those 124 cases were around the community before they figured out they were positive for covid-19 so that is a real problem and until that member starts to get closer to zero, restrictions are likely to remain in place. more than 360 mystery cases now that contact tracers have their work cut out for them here. the lockdown was do end on july 30. that is hard to imagine that happening. the new south wales premier says there will be an update on the future of that within the next
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few days, but she says restrictions on the to remain in place in some shape or form until the majority of the population has been vaccinated. that is well behind schedule. 12% of the country fully vaccinated at the moment. scott morrison has said he regrets saying that the rollout was "not a race" and has apologized for the slowness of it. there is loads of astrazeneca available but nobody wants it because of the vanishingly small chance of suffering a fatal blood clot. there is enormous demand for pfizer and that is expected to grow with the approval being given out for 12-year-olds to 15-year-olds to get that shot. good luck if you are trying to get it. difficult to get a booking to get a pfizer jab. that puts the rollout two months behind where the prime minister would like to see it. shery: we saw the kiwi dollar under pressure after reports that the government was considering all quarantine free
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travel with australia. what do we know? paul: yes, so new zealand will have a decision on that within three hours time. there is an urgent cabinet meeting held yesterday that was outside of normal sitting times and on an unusual day to decide the future of that double. it is not looking good, really. half of the population of australia now under law down. the heavily populated states of new south wales and australia -- there's been a number of pauses in the past but this is by far the worst outbreak so far, at least 2.5 thousand new zealanders are stuck on this side of the sea. queensland has closed all of its borders to new south wales and this is starting to have an impact on airlines as well. the qantas ceo saying he cannot rule out standing down workers if multiple states keep their borders closed for extended periods. we were at a point where
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domestic travel was back to 90% of pre-pandemic levels. it slipped down to 40%. shery: paul allen in sydney. australia believes that washington's plans for an asian digital deal may be a step towards the u.s. rejoining a regional trade pact that president trump exited in 2017. the australian trade minister spoke with annmarie hordern about the deal and his meeting with katherine tai. he says she has offered support in dealing with china's economic coercion. >> the u.s. administration has been very clear that they will not leave us on the playing gold alone so we are looking at examining ways that they can help and support us. obviously, no country wants to be on the receiving end of an economic coercion. it is in no one's interest, no country's interest, that we don't have trading rules in place and all countries adhering
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to these trade rules. it has benefited somewhat from the second world war so we have to work together in putting new trade rules together and making sure we are encouraging all countries to adhere to trading rules and a regional digital trade agreement has been one of those priorities on my agenda here in washington and over the last two days. >> do you find the biden administration wants to sign up for that? dan: we had some very positive talks with ambassador tai yesterday and we discussed it again over dinner last night, and we had very good meetings on the hill, both with senators and house members. and there seems to be a positive approach to bipartisanship when it comes to a digital regional trade agreement and i think that is what we need so i have been very encouraged. >> will this digital trade agreement be a precursor to the united states rejoining tpp?
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dan: i think there are a lot of countries in the region that would hope that that would be the case. our view is let's take one step at a time, create that bipartisanship for a digital trade agreement in the indo pacific region and if we can take that first cap, hopefully we could look at a second -- first step, hopefully we could look at a second step. but we understand the important first step potentially would be taken through a regional digital trade agreement. >> when it comes to china, they don't want to leave you on the playing field alone. specifically, what are you asking the united states to do? dan: be part of setting new rules in new areas, like when it comes to digital trade. look at what we can cooperate in the wto to deal with economic coercion. there's just a couple of ways
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that we can work together. also, making sure that in the committees of the wto that we call out economic coercion when we see it. we are not the only country that has been on the receiving end of economic coercion so we want to make sure that it is made clear to all countries that this is not the way to proceed, that we need to make sure we are working together. >> during this, especially your exports on coal, the united states has rendered exports to beijing. the u.s. is in essence being advanced by this tension between you and beijing. did you discuss that? dan: it is one of the difficulties of dealing with economic coercion. when one country is penalized from another country will benefit from that. we very much need to take a collective approach in calling it out, make sure that we have reputational issues at stake when countries use economic coercion. these are the types of things we have to work together on.
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individual countries targeted, it makes it very difficult for collective action. >> php says it will be years. i'm very rushed on time. years on the stand for china? dan: that depends on the message that we could collectively send to say this is not the type of behavior that will ultimately be rewarded and it is not the way that the world economy will benefit. it benefits from setting the rules and everyone adhering to the rules. shery: that was the australian trade minister speaking about the collapse of the country's trade ties with its major trading partner of china. we have another when it comes to this crown bidding war, not such a bidding war it seems. they have withdrawn their nonbinding proposal for their merger with crown. star entertainment withdrew the plan on account of too much uncertainty about crown with the
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current offer. they say the substantial benefits could be unlocked by a merger but they received limited engagement from crown and therefore, they are withdrawing that nonbinding proposal to merge in may. we saw that bidding war. star entertainment, a rival casino operator proposing that. crown said that that proposal is still undervaluing its assets. star saying its offer would create an australian gaming and hospitality giant with a market cap of 12 billion australian dollars but it does look like that interest has waned. star saying there's been limited engagement from crown and that merger offer has been withdrawn. loads of issues facing crown. we saw in melbourne saying that they are not fit to run their casino license with that public inquiry ongoing. that stock has plunged onto 2% off the high we saw in may when the -- 22% off the high we saw
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in may. tech earnings released after the close. bob o'donnell will be along with us. this is bloomberg. ♪
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>> you are watching "daybreak australia." time for morning calls with
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south korea grappling with a fourth covid virus ways. citibank has slightly lowered its forecast to 4.2% in 2021 but citi expecting the bok will hike rates in august and january in light of the central-bank signaling and eminent exit strategy so citi anticipating korean won strength ahead. turning to india, flipping the board, we have unicorn -- such a list. may be india's biggest ipo since march 2020. at j.p. morgan, a strong pipeline for indian tech companies at home and abroad when it comes to listings, raising up to $12 billion through next summer. the shift in consumer behavior to digital is a key catalyst with many inditex firms, as much as three years ahead of schedule it in terms of generating profits according to jp morgan. haidi: we saw that rebound in tech company striving u.s. stocks to the brink of the
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record. they trading quarter reporting a strong outlook. intel took a slide after giving a lack luster sales forecast. the world's biggest semi maker. let's bring in our guest, bob o'donnell. great to have u.s. always. we have seen -- to have you, as always. it is the forecast that that the market down. bob: yes, and what is interesting about this is not -- the forecast numbers were not so bad but what people were concerned with was the gross margin and there was a lot of focus on that forecasted gross margin not being quite as high because the company did actually raise the revenue target for the year by $1 billion. they smashed the expectations for this quarter and they have good things to say about the forthcoming quarter so the question of investment that intel is making in future
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process technologies, they call their seven nanometer technology, that is going to start to hit in q3 and q4 and there is concerns there. and the other big concern intel talked about was the fact that their supply, that pieces they need, basically the wafers that are required to build the chips, are of course in short supply as well as other components. pc's, everyone likes to talk about the data, they are clearly alive and very well. they grew by 33% this quarter and growth is continuing. the challenge, honestly, is other components, things like displays and other pieces simply are not available and that is actually holding back what could have been an even stronger quarter for pc's for intel. shery: when you talk about investment, intel does not need to purchase a company like global foundries as we have been reporting but saying that they are not ruling out a deal. does intel need that kind of
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purchase to be able to compete with tsm? bob: that is a great question. i happened to have been at the launch event earlier this week when they talked about their expansion. that makes them potentially even more of an attractive target for intel. there is a lot of interest on the intel side. global foundries was clear that they were not going to do that. they have a lot of plans in place and let's not forget that the desire from governments around the world to invest in local manufacturing has never been higher. they are in a fantastic decision to take advantage of that and get governmental funds and supplements and tax credits and all the other kinds of things that will incentivize them to build new chip factories and other parts of the world. everyone recognizes that that is a problem right now and tsmc and other big ones in asia are
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starting to build factories in other places. intel is uniquely positioned as an american company and as the largest semiconductor player around. does that mean they have to have a global foundry? i don't think they do. they will look at what they can do organically and they may look at smaller acquisitions over time but it will be interesting to watch that. shery: that's turn to to -- let's turn to twitter. we know that they had easy comparisons for the second quarter but the third quarter seems to be pretty strong. bob: it was. it was interesting because one of the big questions for twitter and snap news as people start to get out of their pandemic constrictions, which fortunately, we have had some degree of success here in the u.s. on that front, there's been a question of how is that going to change the viewing habits and social media consumption habits of everyone? but clearly, it seems that twitter is doing relatively well. the lack of our previous
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president being on the platform will lead a lot of people to be concerned that there was not as much interest in tracking things but that does not seem to be the case here i think it is interesting to see twitter being as aggressive as they are. they have tried a few things, new subscription models, other advanced features that you can sign up for, they are hopeful they will continue to see success there. clearly, both they and snap strongly about the ability to grow those daily average users that are generating revenue for them. they are able to continue that growth pace. easy versus last quarter but moving forward, it will be interesting to watch. shery: what about giants like amazon, facebook? what should we be watching out for? bob: we are starting to see smartphones come back. smartphones are starting to come
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back. apple will benefit from that. facebook, looks, it is hard to stop what they are doing -- look, it is hard to stop what they are doing. they just continue to just obliterate everybody's expectations. and then on the amazon side, another company which benefits tremendously from the pandemic -- so many people have gotten used to purchasing things online. there are questions about how those habits will change post-pandemic, but i think a lot of people really like the convenience. their aws cloud business is also a big deal and that continues to benefit from all the companies who are moving the cloud computing to make things like hybrid work a stronger possibility. shery: bob o'donnell setting the scene for us. thank you. you can turn to your bloomberg's for more on tech earnings. go to tliv to get commentary and analysis from bloomberg's expert editors.
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this is bloomberg. ♪
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>> jp morgan's latest wall street bank hiring more than 500 advisors as banks via for -- vie for affluent clients. what do we know at this point of their latest hire?
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>> this is their jp morgan advisors business, a business which is their boutique advisory business. it usually has 450 advisors that are going to grow to 1000 in the coming years. they are trying to make a big play here and beef up this business that is focused on the multimillionaires and billionaires of the world. haidi: it may be an obvious question, but why are they vying for this ultrahigh net worth clientele? jenny: you have seen this across wall street, basically every major bank looking to make a play here. wealth has just sort across asia, across the u.s., so these banks are really looking to cater more towards these clients, get them to borrow from them and tap other parts of the bank so it's a big revenue play and you really see a lot of folks vying for this talent right now. shery: you were talking about this being a boutique team. what do we know about their size
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and scaling up and some high profile names they are trying to get? jenny: it is interesting. they are different from the private bank, j.p. morgan, and different from the wealth managers that sit in the branches so it is kind of in between those two units. it's very small. they have their own officers. they operate in 21 cities across the u.s. so you are going to see them try and go after established teams but also look to jp morgan's other businesses and then try to bring in that homegrown talent so we will see them trying a lot of different things to get to that 1000 more bang and it will be interesting -- 1000 mark and it will be interesting to keep an eye on them. haidi: jenny surane. let's get a quick check of the latest business flash headlines. china telecom has received regulatory approval for a share still in shanghai and $8.4 billion number is set to be the biggest. the regulatory commission is set to approve that listing, a move
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that comes six months after china telecom was booted off the new york stock exchange. china mobile is seeking to sell stock in shanghai. singapore's sovereign wealth fund posted its biggest gain since 2015 on the back of inequities rally. returns will be significantly lower over the next decade due to rising bond yields. the fund induces bond and cash holdings to 45% and plans to reduce them further given the prospects for high-yield and lower prices to fixed income. bloomberg has learned that carlyle group is seeking to raise as much as $27 billion for its latest flagship fund in what would be the industry's largest ever private equity pull. the total size of the fund could change. carlisle's fund would be 46% larger than its flagship pool and break the $26 billion record held by blackstone from 2019. snap's sales more than doubled in the second quarter, way past
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estimates. daily active snapchat users exceeded expectations to add about 293 million -- to add to about 292 million. snap benefited from a digital advertising and e-commerce boom during the pandemic. shery: academy securities head of macro strategy will share with us his latest market insights plus a bloomberg equality representative will talk about hardships faced by lgbtq americans. that is it for "daybreak australia." "daybreak asia" is next and take a look at those live pictures from tokyo's olympic stadium. we are seeing the opening ceremony after being delayed for over a year given the coronavirus pandemic. we are expecting that opening ceremony in japan friday evening. usually, it would be held in a stadium full of fans. this year, it will only be athletes from across world in a
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near empty venue given the covid-19 cases. this is bloomberg. ♪
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haidi: hello and welcome to "daybreak asia." i am haidi stroud-watts in sydney. sophie: we are counting down to issues major market opens. shery: good evening. i'm shery ahn. our top stories this hour. tech drives u.s. stocks to the brink of a record. snap and twitter surging after hours on strong reports by the intel sales forecast fall short. beijing may

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