gary dugan joins us. gary, great to have you with us. in israel, a big uncertainty and for a number of companies around asia, i want to look at southeast asia, this bloomberg chart showing metrics in which this region has lagged. southeast asia is lagging the broader region when it comes to earnings upgrades and ebs when it comes to how stocks have performed. do we need further evidence that boosters and vaccines are showing protectiveness against the delta variant, or do we just need to see a broader vaccine rollout more generally? >> it is a combination of those. it is good news that we have more vaccines because if there is only a couple of companies providing the vaccine into the market, than everyone is scrambling for that supply. the problem has been supply, but also the ability to give vaccinations out to countries. many countries have more limited resources. you fix those two things, that gives us hope that the se on market -- asean market can catch up. haidi: out of those markets, which are you more positive on? the ones that yo

i use the word grounded a lot. with the people, with the customers, frontline obsessions is very important. you have to be obsessed with the frontline. you are one of the frontline to serve your customer better. that is something very important. my father taught me how to be daring, to be bold. to have an ambition to create. you can't just be creative, you need to have a mission and you have to be bold enough to move forward. david: was it ever and option not to be part of the family enterprise? i'm sure it has crossed your head, but i'm wondering if that was something that was explicitly said? how did that work? adrian: it's not an option, it's not a charge, it's not just spontaneity. i'm very entrepreneurial and very creative as well and the family gives me such a great platform to experiment. david: not a lot of people have gone through what you went through and where you are right now. how did they teach you how to take risk and measure that risk? adrian: it's like a school lesson -- they pull you into the room

su keenan joins us with more, getting us all set up for this. a lot of anticipation. a lot more optimism today than there has been in the last several weeks. su: the market was off to the races. j.p. morgan, 2% on the day. not a bad game but that is trailing all of its peers but one in terms of year two performance. if you look, you can see j.p. morgan like the rest of the banking industry had big gains until june and that is when the ceo, jamie dimon, signaled trading revenue would probably drop in the second quarter by more than previously expected. j.p. morgan, the first to report this week, so a lot of focus will be on that but we also heard from other bank executives from morgan stanley also managing expectations downward on that trading revenue. analysts preparing for weaker showings of combined earnings from the bank. we will be down 5% from the year ago period. the focus, beyond trading revenue, will be on lending, increased income, banks preparing to return to the office, and deals have been on the rise for many of the banks even as the trading frenzy has sor

joining us is banny lam. when you take a look at the surge we have seen in cases, not just in asia, but globally, is this the key concern for this part of the world? >> i think like last year, we have gotten used to the way the virus has hit the economy. so i think going back, all of that economies may be reintroducing -- i think the lockdown measures. but we get used to the economic activity. on the second half of this year, the virus recovery coming back may not hit the economy so hard. at the same time, we have to get used to the way, how to introduce the business activities in the second half. that is the main part of the asian companies that we have to watch. haidi: i want to get to your calls on japan and korea. financials and consumer discretionary, other sectors you are overweight. talk us through those as you look at economies struggling with a resurgence of the virus. there are two of them. >> i think the market right now is looking at low base, where you compare the first half and also last year. b

always great to have you with us. you do see a bottoming out of area structural -- of a structural slowdown. >> i think when you see the growth, the second quarter we are seeing another below trend growth. i would say people will be watching the june numbers where you are going to see i.t. continue to decelerate from may. i am not overly concerned about the growth momentum in the second half. part of the weakness in june is a related to the prescription because of the resurgent infection and some supply chain disruption that is likely to fade pretty soon. even though we expected growth to decelerate down the road, it is likely to remain decelerate -- to remain resilient against global recovery. consumption will continue to recover. infrastructure investment will pick up, which helps to offset some of the weakness. in the second half, we see the economic growth momentum to stabilize and rebound toward trend growth in first quarter. that is where we see -- i am not overly bearish about china's economy. haidi: let me get

it is run by us. i would like to invite members of the media, you, and others around the world to use it. it will be attractive for that. >> how are you feeling now one week ahead of the opening ceremony? >> well, we are preparing whatever the circumstances is, and the success of the games is the excitement and emotion created by the competition the athletes. so we are welcoming all the athletes and those people from the ioc or international federations and stuff and those who are working for the games. in order to make this a place where athletes can deliver their best performance, we will work with all parties involved to have a safe and secure games. shery: there has been a lot of criticism about japan's vaccination rollout things slower, especially versus other g-7 economies. is there anything the tokyo government is doing separately to accelerate the pace of the rollout mark -- rollout? >> yes, we do the best and are accelerating the pace of vaccinations as much as possible, but the point, yes, t

opec is telling us, copper has told us that. the one catalyst is a potential correction in the stock market. i am not smart enough the figure of the end of the trend. as part of the range is likely to continue. are there reasons to ship the trajectory? i don't think so. kathleen: we hear so much from companies talking about higher input costs, which means higher output costs. how do you see the oil price dynamic, with opec's new deal, filter through the other commodity markets? mike: good example. the thing to remember if the elasticity of supply. expect a massive collapse in corn. we just had the largest amount of fiscal monetary stimulus in the history of the world, and that sugar high should start wearing off. put yourself a year from now, all of those input cause come down because supply will come back, u.s. yellow come back, demand will go down. i fully expect we will go back to where we were before covid, 10 crude oil was a bear market. these levels are very vulnerable that wti is going to go to $50 and very likely that he

great to have you with us. do you expect this olympics to lead -- leave a legacy of sustainability? >> as with all olympic games, there is a lot of pregame hype about the green changes that will come to the country. the follow-through is always the trick and as the previous guest noted, they are already falling short on a number of claims. this isn't the first time. i live in rio de janeiro and at that time people promised to have 80% of the water being flown into the -- flowing into the bay be treated and it was 25%. so there is a lot of aspiration but not necessarily verifiable between projects. haidi: do we go back and reassess what has been done? how much looking back and evaluating in hindsight are we doing about past olympics? >> that's a great point you are making. too often we just jump to the next game. the switzerland-based group that oversees the project, included. it would make sense to figure out what the best practices were and what could be brought forward. but most countries rely on a different

can you give us an overview on how you plan to use the partnership? >> we are discussing the possibility of alliance is in any areas. general motors leads in larger electric vehicles so that is where gm takes the initiative. as for smaller ev's, honda takes the initiative. nothing has been decided yet but we are in talks with all kinds of scenarios and hope to benefit each other. >> you have shown a pretty open attitude towards forming alliances to ride out the auto industry's once-in-a-lifetime shift towards next-generation cars. what kind of new alliances are you seeking to further strengthen honda's position in the global market? >> no specific names of companies in mind because we still want to discuss from different companies -- with different companies from different areas. we can create new value by automotive and entertainment coming together. >> are you talking to any i.t. giants like google or apple? >> we are not in talks with companies that we can name here specifically. shery: the president and ceo of honda speaking to our reporter. honda

joining us is paul from bnp paribas asset management. great to have you with us. what does this mean in terms of where we will see the movement flows, whether it is stocks or bonds, because in the last few months, it seems like emerging market bonds have rallied more than stocks. paul: yeah, but there is no escaping the pull from equity, right? so investors will still want to see the equity returns. and asia, you know, the last six month has been pretty stagnant. i think this will allow an opportunity for investors to find their way back into asia. the u.s. market is actually come on the equity side, it is still a massive pole. we see a lot of returns coming out, and i think that will still be a primary asset class going into the end of 2021. shery:shery: when you are looking at opportunities in the asian markets, especially in equities, where are you looking at them? are we talking reopening, like we have seen today? because we are seeing them already start to get pretty stretched. paul: yeah, i think that what we are looking at is volatility leading to long-term

, who joins us. this is the other big story where we are hearing about record penalties for didi. will they be worse than what we saw for alibaba? >> yes, chinese regulators are considering a range of attentional punishments which can go as far as the worst delisting from the u.s. stock market although it is unclear how it will play out. the other ones they are considering could include a fine or suspension of certain operations or even the introduction of state owned investors. this is according to a bloomberg news report citing people familiar with the matter. they are telling bloomberg that it is still at an early stage and the options are still uncertain. shery: how will it compare with alibaba's penalties after their antitrust investigation, and what could it do its business? >> the people sharing information about the discussions on penalties on didi could be worse and harsher than the ones from alibaba, which as we know, swallowed a record 2.8 billion u.s. dollar fine after the antitrust inves

he joins us from shanghai. great to have you with us. we are seeing what happens when an industry or companies operations do not align with watch -- with what china wants. is it in beijing's interest in nurturing the crypto industry echo -- industry? guest: patient probably has no interest. i think it wants to regulate it to achieve its overarching goal for the digital rmb and the atof the rmb and the stability of financial systems in the country. even though there is a hard-core cryptocurrency community in china, it certainly is not being looked after in any way, unlike the stock or housing markets. haidi: do you think an outright ban is a real risk echo -- a real risk? guest: this is been talked about for many years, since 2013, when cryptocurrency first came on the radar in china. at the time we did not think cryptocurrency would ever get more regulated, but over the years, also in 2017 we saw more action taken by the regulators. at this point, i do fear that possibly of four or five years, the country my even outright panic. but it i

it is widely used to trade bitcoin. the examination will focus on conduct that occurred years ago, specifically whether transactions were linked to crypto. it would mark a significant development in the crackdown on virtual currencies. bloomberg has been told that you can government is planning to move ahead with its back ship nuclear -- flagship nuclear project. the chinese company has a 20% stake in the development of the power stations but bloomberg's sources says britain is looking at ways to remove it from all future projects. >> it comes with foreign money, invested in infrastructure projects, whether it is chinese money or wherever it has gone. money does not smell, as the expression goes. we have to avoid any form of technological control of our electronic and structural -- you know, we need to make sure that these power plants are able to serve the interests of the british people and not become a point of leverage over us. vonnie: global news, 24 hours a day, on air and on bloomberg quicktake, powered by more t

our guest will be joining us with his use. little bit later on, smart money playing in the fallout of the china stock row. sean bars be will be joining us -- sean will be joining us. shery: we will be seeing the pressure on asian futures. what stocks are you watching, sophie? sophie: we are keeping a close eye on lg display afterward ported -- it reported -- the company warned that sales growth may slow. flipping the board, keeping an eye on mitsubishi motors in tokyo. the company back in the black. nissan reporting today. results from japanese chip players. in sydney, switching out the board, keeping an eye on rio tinto with first-half results due this wednesday. bhp making an all-cash copper for a canadian nickel miner as it pushes into the green energy space. we are also watching spark this morning as the kkr led consortium entered talks with the group after sweetening its offer. shery. shery: let's get a quick check of the business flash headlines paid apple third quarter earnings past expectations with revenue of $81 bill

what does this tell us? >> pricing at the bottom of the range is usually is a disappointment signaling that something went wrong on the roadshow in promoting the offering to professional investors. robinhood is taking a unique approach. they are really counting on their army of retail traders to provide a same day pop in shares. that's what all ipo's hope for. the initial trading to go up and not down. thursday in the u.s. will be a test for the strategy. they're offering 55 million shares and, again, had aimed for a valuation of $35 billion. that would've been of midpoint coming at 40. we have heard from sources it is coming up the bottom of the range. a third of the chairs being satisfied for the users. it will trade under the ticker hood on the nasdaq. it is important to point out robinhood has seen itself as democratizing finance so catering to its own traders and users is part of its identity. it is also in its ipo filing that because of this high allocati for retail investors, we could see volatility i

and you give us the timescale? pascal: we are going to go for the full license and the teams are working very hard to file the license application. we will do this over the next two to three months. before the end of the year, for sure. haidi: that was the astrazeneca ceo, pascal soriot. the latest headlines, amazon sales fall short of expectations, suggesting its rapid growth during the pandemic is waiting period it was lower than estimates. they are extending trade as investors focus on the slowing e-commerce business despite strong performances in advertising and the cloud. increasingly looking to return cash to shareholders, initial price discussions were in the 1.15 percentage point rate. it could be toward ibex, dividends and applications. black widow star scarlett johansson is suing disney for streaming the film online at the same time it open in theaters. she claims disney tried to draw audiences away from theaters to its own streaming platform. does he says it is fully compliant with her contract. shery: t

sophie: thank you so much for joining us. with get a quick check of the latest business flash headlines. it could become the world's biggest ipo of the year. the fertile letter business -- fertilizer business, meant to sell a 20% stake in the company. acquired for 43 billion dollars in 2017, china's biggest foreign takeover today. sources tell bloomberg there are talks to buy the 51% stake being sold by investment holdings. that stake will cost at least $272 million. currently owning 49%. hong kong's market operator shuttered its management team. according to a memo seen by bloomberg, it has shifted all of its teams. it will be cowritten in the operation will be overseen. haidi: let's take a look at how asian markets are setting up as we had a u.s. stocks reaching a seventh straight day of record gains. investments seem to pare back expectations of any rush to remove liquidity from those of u.s. payroll numbers. new zealand seen stretching out those gains by 7/10 of 1% and the session. cindy futures looking unchanged at the m

for credit investors like us it is not the default itself that scares us or concerns challenges us. it is how default risk is priced. how distressed securities are traded. and how defaults are dealt with. the key challenge we are looking at in the market is the lack of those factors, particularly consistent, transparent, and predictable resolution process. we have seen progress made in areas over the past 12-18 months. and there are new rules and regulations on resolution on five pockets, on market-making, and all. again, covid does not change the overall course of china's default. as we get back to normal we should expect more defaults to happen again. haidi: so why now? why is the chinese government doing this now? is that that they see they have more leeway to do it now? >> things have been normalized. if you look at china's overall gdp growth numbers and the pmi, they have been robust. and you have the inflows, strong inflows into china's bond market. the government would like to attract more investors into that credit market, which again, is a second largest in the world. haidi

ye xie joining us from new york. we will get more outlook on chinese tech and equities more broadly read i want to bring in joyce chang -- broadly. i want to bring in joyce chang. let me look at this chart. that is one of the ways you can view the malaise we have seen in onshore and offshore trading of chinese stocks. this is the hang seng tech index. about 30% from the previous peak we have seen. how much further down i'd is there as you consider even for a company like didi the fundamentals of the business, you know, the profitability. it does not seem to be changed by this. joyce: we really think that chinese stocks are going to be range bound here. it is not just the company story. at the macro level, we have seen some disappointments in domestic demand. we are seeing continuing concerns about a slowdown in credit growth, and we do see the regulatory environment still tightening around the internet giants, so i think you will stay range bound here. i don't think it is going to come down that much more. you are su

joining us now is christopher smart. always great having you with us. valuation starting to look attractive on tech across asia? >> in some cases, they are. generally, we think of technology as one of the places where they have to make some invest because of the way technology is changing so many industries and sectors around the world. the selloff in asia provides some more attractive entry points but the thing that we are learning again with the news out of china is that this is not a sector that is at all free from regulators. as we are seeing in the u.s. and europe and in china as well, you have to take but there is plenty of ammunition that the government has at its disposal. the real task for an investor is to understand [indiscernible] >> we are seeing the likes of the ecb tweaked their inflation outlook. in the fed meeting minutes, ours overestimating or under messaging inflation? >> we believe the economy is on track for a strong reopening this year and next year. we had a central banks really saying, it's not that you think we are behind the c

drew armstrong joins us now. what we know about the performance of the two initial doses and now the booster that is seeking approval against the delta variant? drew: we know right now that the first two doses of pfizer's vaccine are highly effective against all forms of covid, especially when it comes to severe disease. that continues to be shown in most of the data we have seen. i believe the expectations will be true with moderna's shot as well. pfizer says they plan to seek emergency use authorization for an additional dose, a booster dose not necessarily against the delta variant. not specifically tailored but as always of boosting some of that immunity as you see it from the vaccine begin to wane over time. shery: is this going to take production capacity away from the actual first and second doses that the rest of the world still lacks? drew: i think that is a good question. my guess is that a booster dose will probably be, you know, something that rolls out relatively slowly over time and, you know, in th

gtb energy services jon grissom: is with us. -- services director is with us. companies have agreed to a minimum tax rate for international corporations. that has allowed for an implementation of the rules as soon as 2023. janet yellen calling at a historic day, saying the global race to lower taxes is self-defeating and has deprived countries of important funding. >> i could not agree more with our treasury secretary. not just for economic diplomacy, but for fairness in the tax code. for an old -- multinational corporations paying their fair share. for the american worker to get their fair share out of a tax code. haidi: let's go to the federal reserve reporter. let's start off with the u.s.. what are the implications? >> it is a pretty significant step forward for the biden administration. they can claim a partial victory here in moving toward an international tax regime that will presumably helped stop the flow of companies moving their headquarters out of the u.s. and putting them in low tax destinations. ireland or some other tax havens . there are many ex

kathleen: paul allen joining us from sydney. bank indonesia could begin monitoring -- tightening monetary policy next year as policymakers see signs of inflation. the governor told haslinda amin that the central bank is reassessing the growth outlook. >> we are forecasting our economic growth will be 4.1-five .1%, growing about 7% in the second quarter, and 6.3% in the third quarter, and over 5% in the fourth quarter. you are right, we are in the process of reassessing what the impact of the increase of covid-19 cases. haslinda: there is a downside to your 2021 forecast? >> economic growth, mostly stemming from domestic, the impact of the increase in cases and the policy that needs to be done by the government and all of us to control covid-19. the regulation of mobility around bali will need to be assessed. human mobility, and finance. because exports have been the driver of our economy, and thanks to the economic recovery in the u.s. and china, we are looking to also recovery in europe. haslinda: the current situation is getti

su keenan joining us for more. we saw bank stocks on retreat for a while, thinking that the earnings would not be so good. today, we had quite a move in financials area people seem not nervous exactly but like they are really gearing up for this. su: we did see it moving higher with the rest of the market but you look at the big chair year-to-date, jpm's stock down -- not as much as its peers but down from that first half rally. that has a lot to do with the fact that the ceo, jamie dimon, back in june, really talking about how you should manage expectations and trading revenue. not going to be quite as fast and furious as we saw in the earlier quarters last year. we heard from other banks. sort of tempering expectations, managing expectations down. analysts say the big question is a lot of the good news is already priced in and we will know j.p. morgan is the first to report but analysts have been expecting a weaker showing for the combined revenue of the six biggest banks, down 5%. apart from the trading revenue

stay with us. this is bloomberg. ♪ haidi: let's get you a quick check of the latest business flash headlines. a chinese asset management company has agreed to pay a bond. it has repaid the principal and interest of the bond on tuesday. the debt manager reached funding agreements with state-owned banks to ensure it can pay through the end of august. it posted its biggest annual return since 2010 on the rally in global equities but warned a temporary rise in inflation could be at risk. the singapore state investor saw a 25% gain for march. 280 $2 billion. that marked a turnaround from the previous year's drop of 2%. china remains the biggest market, making up 27% of the portfolio, followed by singapore at 24%. sources say -- is considering shifting its ipo from the u.s. to hong kong as chinese regulators crackdown on overseas listings. the on-demand logistics and delivery firm is said to be concerned about new rules from authorities in beijing and potential delays to its listings. we are told that

paul allen joins us now. conditions have not yet been tightened despite a lot of people calling for non-essential businesses to be closed down. will this be enough? paul: we will have to see, but as you say, no change to conditions -- no curfew. anything like that. you can see in the harbor bridge a surprising amount of traffic and debate around what exactly is an essential worker so plenty of confusion about that as well and we did have 97 new cases reported on wednesday. those numbers are expected to bounce around. the lockdown extended to july 30 but local media really have been expecting that that will be four weeks instead of just two. all of this compounded by confusion not just over affirmations of essential workers but over relative risks of vaccines, who gets what, where you can go to get one. in the rollout has been absolutely catastrophic. scott morrison said earlier this year that the rollout was not a race. it is coming back to haunt him now, this reliance on a zero covid strategy. shery: it is s

economist joins us now. great to have you with us. when do you expect the fed to come out and lay out a plan for tapering? >> i think they would be foolhardy not to do it in july. and i think they will. the whole argument of whether or not it is tied to take -- time to taper, you can make the argument there are a lot of twists and turns between now and then but there's certainly nothing that says the fed can't say -- look, the fed never gave the promise that it's going to get easier policy as the economy expands. it just made the promise -- for them to begin to talk about tapering, given the reduction in the size of the deficit, they are making financial conditions even easier by continuing to provide indiscriminately, meaning they are just taking it in. it's time for the fed to come out and say, look, here is the plan, we are going to start in six months. of course in six months time if the economy is in a different place, we won't do it. if it is, this is what we are going to do, and it makes all the sense in the world. shery: he is

joining us is our editor. xi sent a prerecorded message. tell us about it. tony: there was some expectation that there would be a face-off between biden and xi at this meeting. that did not happen, that it gave biden his chance to lay out the u.s. position. in terms that sound familiar to china, even though xi was not at the meeting. there has been so much on the table in fact that could have discussed, some sort of moving of relations between the countries, everything from human rights to military conflict over taiwan and chinese fracking. this was not the significant occasion in might have been. haidi: the u.s.-china relationship and global coordination of the virus themes that loomed large. what do you think the president wanted to drive home as his main message? tony: biden's stance was very much the u.s. message that has been consistent on china, that's the indo pacific region must remain free, which has all kinds of connotations for china. also, to maintain a values-based global system, which again, is code for freedom, including free trade. he also us

pray to have you with us. what will bring those -- really see those retail investors come to the rescue again, or is this justified given all the rallies to all-time highs this year already? jim: a couple thoughts. the first is, the institutional buyer has been the flip of the retail buyer. one of the reasons bonds have rallied is that institutional investors have rebound out of equities, which dachshund to fixed income. it is justified on a short-term basis. there has not been 10% to nearly 56 weeks. if you look at the issue of the delta variant and covid, it is the short-term concern. toward the end of the year, most western economies are going to have immunity in the 75%-80% range. intermediate is longer-term problem. >> does that mean rotation back to those stretched valuation growth stocks right now is unjustified? this chart on bloomberg showing that rotation and how value has started to underperform. >> it is completely understandable. whenever you see the yield curve flattening, people go towards growt

haidi: bonnie glaser, always great to have you with us. we are taking a look at this ahead of the start of trading in sydney, taking that $728 million charge on coal assets. new south wales made the decision to refute an application for the next life extension project. scaled-back activity on the project is happening and alternatives are being sought including looking at judicial review of that decision but in the meantime, they are taking that impairment charge on his assets on this expectation of increased approval uncertainty as well. tom barrack has been arrested on charges of illegally lobbying the united arab emirates. prosecutors say he unlawfully influenced the foreign presidents policy position. erik schatzker spoke to him about his time with the trump campaign last week before his arrest. >> from my simple beginnings of where i came to have the gift an opportunity to be next to a president of the united states and have the honor of running an inauguration, to be up close and personal on some issues that affect the world order, i

haidi: we continue to look at the technicals and what history shows us us well. it seems to tell us that u.s. will markets don't just die of old age. it's not a longevity issue that we're concerned about. this is what we're hearing from investors like scott minerd, saying he sees the fall or autumn, by the end of october being a challenging year. and a lot of the concerns have to do with the resurgence of covid-19 and the delta variant, derailing the recovery. dave, our markets overestimating or underestimating the longevity of delta and potentially whatever the next variant is? >> with the resurgence of the delta variant, we saw markets react negatively on monday. there's information that it was spreading rapidly in the u.s. along with many other places in the world. what i find interesting is the resilience of the market, it shows you especially the resiliency through all of this. it's quite remarkable, we have central bank liquidity, economic growth being robust. with that being said, there are some questions about how long it will continue. for the time being

the quicker we can do that, the quicker we can use those other 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 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: >>>> 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 off

matt, great to have you with us. still ahead on "daybreak: australia," more on bitcoin, trading above the crucial technical level. we dive into what it means for the broader outlook a little later. plus, the u.s. and china headed into their first high-level talks. our guest will give us her thoughts. this is bloomberg. ♪ . ♪ vonnie: at least six mainland china listed companies made exchange filings sunday after beijing cracked down on afterschool tutoring. the companies about compliance, and evaluated the downside risk. a day earlier, beijing revealed a sweeping overhaul of the education tech sector, banning companies from raising capital or going public. china is the -- is a bracing for more disruption after a typhoon hit the east coast south of shanghai. 100,000 people had to leave their homes. more flights may be grounded monday. this follows hundreds of cancellations on the weekend. china also diverted container ships from one of the world's busiest shipping centers. the top u.s. infectious disease expert say

, co-head of investment joining us. beijing's education [indiscernible] helping every sector. we take a look at what to expect in the market open after monday's row. the u.s. and china leave room to talk after a contentious meeting. the latest ahead. this is bloomberg. ♪ >> you are watching "daybreak australia." president joe biden says no u.s. combat will remain in iraq by the year's end. the white house official says washington is expected to maintain a military ground presence. iran faces pressure from hard-line action that want the remaining 2500 u.s. troops to leave the country. u.s. state department raised an advisory to the highest level, urging americans to avoid traveling there. the cdc boosted their warning for spain to the highest level as covid cases climb. they had opened their borders to u.s. tourists in june. california employees must prove they have been vaccinated or wear a mask in the office or undergo weekly testing. all health care workers will have to provide proof of vaccine or submit to similar

the ceo joins us in a few moments. this is bloomberg. ♪ haidi: shares in mattel climbed as high as eight .3% in extended trading after the company reported second-quarter results that soared past expectations amid an ongoing toy buying boom. revenue rose 40% to just over $1 billion in the company raised its guidance as well area joining us from california is the mattel chairman and ceo. great to have you with us. you seem to be projecting this continued strength beyond the pandemic. here in sydney, we are under lockdown again and i am buying more toys to keep my toddler occupied at home. do you think this trend system ends -- sustains even as the world returns to normal? >> that really bodes well for mattel and that these are exciting times for our company with another exceptional quarter. sales were up 40% with adjusted ebitda growing by more than four times. our strength is foundational and very broad-based and we are significantly outperforming the industry and gaining market share in each region. we are now firml

do not get used to it. all of this was propelled by strong commodities prices which has been propelled by very generous recovery packages from governments around the world. particularly in the case of rio tinto and the other australian miners coming out of china. this was the first set of earnings under him and he says the long-term potential of china is intact but he sees a nonsustainable level of development happening in the first half of this year. the numbers themselves are very impressive. $12.2 billion underlying profit for the first half, more than rio tinto made in the integrity of the financial year prior and dividend -- that is the biggest on record as well. iron ore accounting for 85% of rio tinto's profit. when that iron ore price does get above $200 per ton, it is not sustainable and it is bound to reduce. shery: prices for copper hovering near record highs. what is the supply outlook right now? paul: there are some risks there. the biggest copper mine in the world, which is run by bhp, there w

you have some breaking news for us in australia. haidi: we are hearing the national australian bank is set to buy back their own shares. -- under that buyback scheme will depend on market conditions. the share price and other considerations according to a statement we have just gotten. this after anz was the first to kick off the sector's wave of billions of dollars expected in capital returns to investors. they announced they buyback of $1.5 billion earlier in the month. we had been expecting cba's to be announcing that no doubt, that will not be the last. taking a look ae rest of the day ahead in australia and energy minister -- signed a letter of intent with u.k. counterparts. the plan is to partner on energysolutions like clean hydrogen. we will be watching mining stocks at the open. credit suisse cutting to neutral. see lsa -- clsa has a rating on rio tinto as well. we will be hearing initial interest. it is said to be coming from a waste management company. much more ahead on "daybreak australia." this is bloomberg. ♪ shery:

nancy, always good to have you with us. there have been mixed reactions to the prime minister and the government's four step plan to get people fully vaccinated. is it enough, particularly the level of detail we have been given on how this is going to be achieved? for >> first of all we need a plan but what they have presented is a plan to make a plan. i think with covid, you need to be fairly flexible. i don't necessarily have a problem that they don't have every step of the journey mapped out. particularly for the initial two phases of the vaccination plan to open up. haidi: with respect to how this latest lockton has been happening, we see very few people wearing masks. public areas being busy. everybody getting back to lives as normal. is this a way to get out of these cluster outbreaks? i know you are saying a lot of these measures need to be put in place until such point that we reached some level of herd immunity. >> i think masks should be here to stay in some circumstances. not so much outdoors but mormon people ar

george joins us and tells us why he is staying underweight when it comes to growth stocks. plus he joins us to discuss the opec breakdown and what it means for oil prices from here on forward. that is it for "daybreak australia." "daybreak asia" is next. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. haidi: hello and welcome to "daybreak asia." i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. our top stories this hour. fears of a price war in global inflation as opec-plus abandoned its meeting with no agreement on boosting oil output. the rba is expected to pare back emergency stimulus at tuesday's meeting

great to have you with us. what does this really mean for those companies, when you have a regulatory crackdown? have we seen the impact and should investors be worried by now? >> that's a great point. while there is a lot of regulatory by, we have not seen it actually impact the net income statement nor the balance sheet of the companies involved. q4 own warning's in 2020 were very strong -- q4 earnings were very strong during the regulatory crackdown. it is really more than the investment sediment, the overhang of not knowing the endgame of this regulation. shery: can we say that all of that has been priced in already, or could we see more jitters ahead? >> i think you have a lot priced in here, i think you have a u.s. regulation that is a factor. five of the 10 stocks in u.s. listed chinese companies. then we have a value growth rotation. investors balancing themselves between value and growth after very significant outputs. he much everything but the kitchen sink has been thrown at the stocks. companies are

joining us now for the latest is our guest. today's numbers are going to be a substantial increase in the overnight for the previous day and we are seeing the virus spreading across new areas. >> good morning, haidi. in yesterday's press conference, the premier announced 27 new local patients rising from the previous day. she told them the numbers again today and we are expecting those numbers around 11:00 a.m. this morning. where cases are popping up now has shifted since the beginning of this mid june outbreak where cases were first reported in sydney and areas around bond ai. now, cases are spiking in southwestern sydney. shery: could we see resurgence being tightened from here? >> the government is considering taking further actions to restrict movements in these areas of sydney where the cases are most concentrated now. these are down in liverpool local government areas. the health authorities are concerned because these new areas of concentrated cases has shifted very quickly. the situation has changed since we spoke a co

joining us now with the latest is georgina mckay. we saw yesterday's case numbers reaching a record high. what is the response given that we sort of jokingly but also throw our hands up talking about this as a kind of lockdown lite. georgina: good morning. w>gk(-■%■sydney rec8 cases in the community yesterday, and over half of those cases came from areas in sydney's southwest and today, state police launched an operation in this area to up the police presence in this part of the city, targeting those who are not complying. this is a lockdown lite. there are hard restrictions as we have seen in melbourne in the past. the state government is begging people to stay home. it is saying case numbers are too high. the reality is, this lockdown could very well be extended the arms next friday. some sydney residents are not as diligent about weighing home this time around because they can look overseas nce economies opening up and death rates declining. shery: we sound like a broken record now. in the vaccine rollout, what is being done t

us. the worst month for value plays in 20 years. jp morgan sticking with their trade. they say the current market positioning is not justified, adding that what you will see with the vaccinations is a move higher in bond yield value and cyclical stocks. eight percentage points was the lag of some of the counterparts over the course of the last month. the most since 2000. let's check in on the market action in more detail. the s&p 500 mini future stories called higher. u.s. 10, 147. the hawkish shift in monetary policy. of course, it is helping the trade in the last couple of months. then you have the euro-dollar, 118:40 -- 118.47. kind of define the strategists, those who were calling for its demise and further deceleration of momentum. that has not come through. brent crude at $74 a barrel. citi saying we might get a surprise from opec-plus, that could lead up to the actual meeting in the coming hours. a big point in this program. now to our top story. robert kaplan says scaling back the

jane is still with us to help us dig through developments. it feels like not that long ago we had concerns, or at least the pboc had concerns about a strong renminbi, given the cut to the triple r's and growth in china, is that strength ready you on -- yuam over -- yuan over? jane: if the markets get wind of that, that is negative for the renminbi. since the middle of june, we've seen the stronger dollar coming up too. i think for now, the market is more relaxed and no doubt the pboc is much more relaxed about the value of the renminbi. but it depends upon growth here. we can perhaps turn away from that for now but i think at one point those concerns could come back depending on what happens with growth. one of the interesting things about growth right now, it's not necessarily a slowdown in demand, it is also considerable supply was -- supply constraints slowing down growth potential. some of the production data in some economies. maybe that brings inflation into the context, which does shine a different light on how central banks could reac

that is it for us. european open is next. ♪ ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating and losing weight. go to golo.com and see how golo can change your life. that's golo.com. ♪ anna: good mornin

class coming in that intern with us last year. going back to business school, that is fine. if you want to stand the workplace, work in a different part of the company. this is a heavily talented, 50% diverse candidates, great group of kids, come in and enjoy the company and learn. we have to give them a chance to see each other. some of the informality is tremendous and it has not been able to add -- not been able to been pad because of the pandemic and we are reversing that out. dani: earnings coming in weaker than had been expected, second-quarter net income, taiwanese dollars, missing estimates. margins here, 50%. apple, their news yesterday of course, important here as well. manus: they have given some guidance on the forward-looking on the margin, and they say they should expect those margins relative to the first quarter. the apple story from yesterday, tsmc, one of the big suppliers into apple, apple going for a 20% boost of their overall production of iphones. t-live for everybody there, viewers can pick it up. the way to

joining us now is lucy coutts. jm finn investment director. thank you for joining us. there's a lot going on now between earnings, fed speak, pal testimony. what do you think is winning out in the markets right now? is the fed controlling the direction of assets right now? >> -- lucy: good morning. at the moment, the eyes of the investment world are looking at the u.s.. everything that jerome says matters. bond markets and economists have never been great forecasters of inflation. it's not that long ago since economists were talking about a prolonged slump in the world economy. at that time, commodities fell dramatically. it's that baselevel that inflation is being measured. in the u.s., it is running at 5.4%. that's a 13 year high. if you strip out, where jerome powell was leading, if you strip out the severe lines, the events, the new and used cars, things that are benefiting positively from us coming out of the pandemic, that's a very narrow group of assets and items to measure inflation on. strip those out, inflation is at 2.47% which is lower than the pre-pandemic

joining us, we have martin malone. thank you for joining us. i know manus is crushed you are joining us on a day he is not here. when you look at these markets, there is obviously a big contrast to an economic picture, when you have economies trying to open up. the u.s. 10 year yield below 1.8%. why are markets so dour compared to economic data? martin: good morning. i think it is a number of issues. the most important factor is, as you pointed out, the bond rally down to 125% in australia and the u.s., and also these growth issues that look quite solid in europe and america. it is basically that we have a stagflation risk coming from supply shocks. we can see supply shocks everywhere, like your reporter said on cannon street. we have a supply shock in jobs, in the energy market, the other commodities. we have a supply shock in many goods and supplies across many industries that is well-recognized. it is coming through on two levels. one, we have a significant deceleration in growth in places like china and significant inflation upward move in

let's go ahead and see where markets are taking us so far this morning. in asia, it has been a weaker session, down .9%. if you compare that to what happened in the u.s. yesterday, down one point 5% on the s&p 500. down 2% on the dow jones index. it is certainly not as grim but it is a more negative picture in asia. because you have that haven buying in the bond space, the china 10 year yield down below 3%. it has been for a few days. it is at its lowest since 2017, and looking at a futures market in the u.s. and europe that is performing better. here is where your bond picture is this morning. it has been moving markets. it's not what we are going to see for the rest of the year. long-term, the movie is higher in the bond market and we have not seen the cyclical peak in yields. if you see major at hsbc, he has been calling it pretty well that we will continue to see bond yields fly. his target is 1% on the 10 year yield but 10 year yields at the moment at 1.2%. meanwhile, we are looking at a 30 year yield at 182.19 -- 1.8292. in the asian session, we see

joining us now is derek halpenny. thank you so much for joining us this morning. in your view, is the ecb meeting today alive one or is it just a technical implementation of this new inflation target? derek: it is certainly a lot more significant than what it was before we had the announcement and the details of the monetary policy strategy review. when we listened to christine lagarde and press conferences explaining the outcome of the review, she tried so hard to emphasize this as being a major event, a very significant change in terms of the monetary policy strategy going forward. markets didn't really buy it. i think the effort will be there again today. we are certainly going to get some changes that we wouldn't have got if we hadn't had this review. the guidance and communication will be the real focus for the markets. it will be difficult. you end manus were talking about running hot. what does running hot mean? running hot is what we have. [laughter] that's the reality of what the ecb has done. it has largely confirmed what they're already doing. they form