china has held military exercises outside of taiwan after an aircraft landed in taiwan. that is according to the global times. the paper said the drills and the waters should be seen as a warning and determined to the u.s. and taiwan. it reported more complex military exercises will likely be staged in the future. angela merkel toward flood ravaged parts of western terminate as cleanup efforts continued, she called the situation frightening. the death toll is up to 180 as rescue efforts continue. her visit came a day after her heir apparent with some laughing while terminate's -- germany's president made remarks. in timeline, -- in thailand, police fired water cannons at activists marching to protest the government's handling of the coronavirus upgrade. the protest came despite restrictions on public gatherings of more than five people. cases have exceeded 400,000 and daily fatalities are breaking records. mexico says it wants to restart diplomatic and commercial ties with north korea. the country's foreign minister made the statement at the un security council meeting.

taiwan may unveil plans to partially ease covid curbs for next week. officials waive the need to revive the economy and global spread of the delta variant spirit easing of controls would include allowing and restaurant dining. there were just 39 new cases thursday. the world health organization is urging caution over reopening as hospitals have seen increasing infections. more than two dozen countries have reported epidemic curves and vertical spikes. officials are asking governments to be careful and not lose progress made so far. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ haidi: breaking news when it comes to the virus implications in japan. they are recommending a declaration for the viral state of emergency in tokyo. just weeks ahead of the start of the olympic games. the prefectures are continuing with virus measures and a state of emergency for tokyo will be july 12 to august 22. japan was planning to declare the new state of emergency in tokyo throughout the o

beijing says it represents taiwan and its national conferences. he most recently served as vice foreign minister. the two largest economies are locking horns on issues from trade to technology, human rights, and the south china sea. iran supreme leader called u.s. sovereign for discussing the regional influence during yuko talks in vienna. it could signal more trouble ahead for negotiations. iran's president said he wants to return to the deal. the u.s. is blaming iran for the nuclear impasse. level news, 24 hours a day, on air and on bloomberg quicktake -- 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. this is bloomberg. ♪ sheri: nissan jumping 7.4% at one point. best day since february 5 in the fifth session of gains. it posted a surprise profit in the last quarter and raised forecast for the year. it saw navy yard during the u.s. job by more than 9%. this, of course, as you see strong demand and optimism for recovery from the global chip shortage.

we are watching that as we head towards the taiwan open with futures under pressure. haidi: at this point, we would usually be talking about how the japanese trading day would have been going for the last half hour or so, but it is a day off, so it is very simple -- very able medic we are counting down to the open. it has been a long road. postponements, no spectators, certainly shaping up to be an unusual olympics, but i think a lot of people will be quite emotional when that ceremony on the league gets under way. shery: there has been a lot of public skepticism over carrying on the olympics, especially with that yet again another state of emergency -- what is this, the fourth? but when we see the opening ceremonies, it is supposed to really showcase japan's culture, a beacon of hope as the tokyo governor told us before, so we will be watching closely, although it will be very different, given the pandemic. athletes will be marching from all across the world, but they will be in a very different -- a very empty venue. >> they're different, and number people declining

i don't see that much of buying like other markets such as taiwan. it is out of better markets like korea, that is how this came along. >> can chinese tech get cheap enough to entice you? harold: chinese tech, since last year, regulations came up. i think a lot of people focus on the regulations issues and stuff like that. what we also see is these companies investing quite a lot and i think they will start to compete with each other. the profitability sector might come under pressure as well. there is probably more to go but we remain cautious on china. >> what about the impact of the delta variant and we are starting to see the differentials in growth that comes from a lack of a vaccine rollout across parts of asia. harold: the delta variant is making a difference in asia. indonesia is being affected. you mentioned malaysia. back to what i said in the earlier part, it will impact the growth of companies but some will be affected more than others. it will also affect bond yields and how governments will react to this. it is not easy to say covid is

tsmc, largely its production is all in taiwan. it does have some facilities in china. the countries that it supplies, especially the u.s. and japan, they found that concerning. there has been a bit of a push to push tsmc to spread its production out more geographically. they have already agreed and started working on a chip plant in the united states. japan has got into the act as well. japan used to be a leader in this sector. it is no longer in that status. they realized that they may be need outside help to help reinvigorate their own fading chick making -- chipmaking industry. they have been pushing tsmc to invest in japan. there previously have been talks that tsmc had agreed to establish an r&d lab in japan. yesterday at what we heard is that tsmc is now doing its due diligence on whether to establish a fab in japan. this could bring more chipmaking technology to the country. >> the global race for chip dominance continues. let's get you a quick check of the fx moves around the region. big day still had for central banks. expectations of not much movement from th

gary: it is weird that in northern asia, particularly taiwan and korean market, and japan, that we have seen these markets go sideways. marked underperformance. in fact, if you look at valuations, incredible value, it just needs a spark of good news and that has to be upgrades to the forecasts. there is a call in the third and fourth quarters of this year that, do want to be out of a market that seriously underperformed when good news must be just around the corner? things could improve these markets could catch up. shery: what is the catalyst, vaccinations in general? gary: vaccinations that lead to a more marked reopening of those countries. in any case, many of those countries are serious exporters of ducts the world needs therefore, the first boost would come to a surprise in the upside to export that will drive third-quarter growth. but he needs every opening and a or profound reopening of these countries would get international investors back. haidi: gary dugan joining us from singapore, the global cio office ceo. vonnie, you have vaccine news? vonnie: the world health organizatio

taiwan has 168% in the same period. it is in the three-year market that we believe we will find the growth stories of the next decade. those markets have companies that are free to act on their own will, free to act in the best interest of the shareholders and other stakeholders other than the state. it does not always come first. shery: in south korea, we have seen more regulatory pressure to curb valuations. the longest in the world since the pandemic started. in your notes, you say you also like chile, but we are seeing that constitutional rewrite that might be less market friendly. what do we have to keep in mind when you are investing in those freer markets? perth: even in the freer markets, there is no 100% free market. every market has this problem. sometimes, there will be that pendulum swinging the other way because it does happen in waves. inchile, it is -- in chile, it is a very free market compared to other south american markets. they hosted a communist party who is a front runner. in the market -- and the

advance so asia seeing a cautious start as we had to a session that has inflation plus trade data from taiwan and we are keeping a close eye on oil. wti heading higher after their options we saw on tuesday. different views from analysts. at ubs, they boosted their forecast by two dollars. jp morgan staying pat on their predictions for crude. aussie bond yields, we are seeing a push lower, seeing it basis as much as eightht points, tracking the drop we saw in treasury yields. pulling up the board to see the move in that, we have a 10 year rate notching its biggest decline since february for treasuries, capping a six day drop. in february -- zone back in february. it weighed on u.s. shares. analysts say that china's text crackdown is raising questions on sustainability of u.s. equity evaluations. haidi. haidi: take a look at that big story. didi tumbling below its ipo price following china's crackdown on the company over data security. the message from beijing goes beyond a single company it seems. some are seeing the move by regulators as trying to actively uej chinese tech companies from list

he also highlighted concerns about taiwan and the uighurs. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan, this is bloomberg. haidi: and says china is entering a new decade of internet regulation of a decorative what he calls while -- we will discuss what sectors they could be targeting next. taking a look at the tech giant apple and alphabet after sales surge in the last quarter. this is bloomberg. ♪ shery: let's take a look at those big tech earnings in the u.s., apple and alphabet both seeing topline numbers beating estimates with alphabets add sales and apple service revenue showing healthy growth. joining us for the details's bloomberg tv west coast reporter ed ludlow. let's start with apple, another huge quarter for them shattering revenue expectations. >> it's really all about the iphone. more than $80 billion of revenue, almost half of that being from iphone. what the company is saying is you are seeing the reopening of bear

we are seeing some of that happen in places like south korea as well as taiwan and taiwan as well. during the first half of the year, cyclical stocks have started to outperform. it is one of those situations where we will closely monitor the situation. >> how long will it take for us to see these flowers -- virus infections spreading? ken: if we do get further lockdowns, if we do have the economy shutting down again, that will have a deep impact. when we look at what is said and what was happening, there is some skepticism in terms of what is likely to happen but overall we think that right now because of what we are seeing over the past couple of weeks of so -- or so, investors are taking a bit of profit off the table. there is a bit more skepticism about whether that whole growth story continues during the second half of 2021. >> how much is the recovery story baked into earnings? ken: it partially is. earnings season is coming up. over the next month or so or six weeks, we will see a lot of earnings announcements but what i think will be more important is not the earnings that h

the supply is already at full capacity for taiwan. they are moving some production off-site. that actually can stop the shortage a little bit, but only temporary. those sites will also be at full capacity very soon. we will have higher chip prices for longer. for example two years or three years, until the chip demand goes down. it is very unlikely for this world to have chip demand go down. >> we continue to see the slowdown in china. uneven growth at least. what can we expect in the bond markets? we saw high yields falling to the lowest since august. >> i believe this is -- the lower yield story is only temporary for china. the targeted rrr will be very targeted. it may not be very effective to help families. even with -- they are not changing the credit policy. it does not mean banks will send more to smes. the chinese government needs to find other ways to help smes. for example some financing programs. the rrr cuts, this is targeted. it will be short-lived. it may not be used anyway. i don't think it will be long-lasting effect on the 10 year yield. >> always great to ha

. >> recently, taiwan's apir group, listed in the tse. what will the tse do to attract more overseas companies and how do you plan to compete with overseas exchanges? >> market in tse has been strong in the last few years. also the market highly rated, especially by asian startups. as you know, japan has a very stable democratic government. and the power of regulation is also very stable. and we have the japanese economy, the third largest in the world, with 2000 trillion yen in assets held by individuals. and the tse affair and open market with ample liquidity. you do not have any other markets like this in asia. with that background, we have been promoting ipo business among asian companies. targeted cross-border companies, what we call cross-border companies. cross-border companies are three types. what is companies based abroad. the second is those companies originally based abroad but reestablished itself in japan is a japanese company. and the third case is those japan-based companies with foreign-born ceos. and we, from the beginni

safety and some of those growth stocks in east asia, perhaps not the chinese ones, but south korea or taiwan? guest: i was a the answer is in the middle where you go with momentum. -- i would say the answer is in the middle where you go with momentum. it is going from early cycle to mid cycle. in mid cycle, it is momentum stocks that do the best. the delta variance will put some pressure on reopening trade for at least some time before it starts to pick up again. it will probably come to asia at a slightly later -- stage. bond yields have muddied the fed's reaction. we will get clarity by september. in the interim, it is momentum stocks that should continue to do boo -- should continue to bit -- should continue to do well. that's what we are looking at. many of the semantics fit into that space, like decarbonization, automation, and semiconductors. shery: his take on where to invest in the coming months. let's delve a little deeper on china's regulatory crackdown to the tutoring and education tech sector. john, what exactly are the details of the latest crackdown? reporter: so, any company t