tv Bloomberg Daybreak Asia Bloomberg January 9, 2022 6:00pm-8:00pm EST
cases as china is the first community spread of omicron in shenzen. 100,000 new daily infections in the u.s. reported for the fourth time. and novak djokovic has court is our, by the austrian government warns that he could be detained again if he is not successful in overturning his visa cancellation. haidi: omicron is top of mind for markets as they continue to digest the fallout from the disappointing jobs number. payrolls: to question the strength of the labor market in this recovery. we are also watching out for the highly anticipated and expected to be very strong u.s. inflation number out this week. in addition to the china eco-numbers, to set the scene for what we can expect for growth. in australia we are seeing an upside of 10%. more than 100,000 new cases of the coronavirus over the weekend, and we continue to see those cases, as well as
hospitalizations and deaths start to creep up as well. new zealand is seeing a downside of half a percent. s&p futures are pretty much unchanged over the weekend. when it comes to the issue of omicron, the issue of vaccination, we are watching court proceedings involving the world number one, djokovic, in melbourne at the moment. haidi: we are expecting to hear the latest on that court hearing. shery: we are looking at live pictures of outside the courthouse in melbourne. novak djokovic has been waiting, his court hearing given the cancellation of his visa by the australian border force, this coming at a time when a melbourne court also rejected the government's request to delay the hearing. that will proceed today as
officials saying that the tennis star violated immigration laws. of course, he has not been vaccinated, and officials are trying to deport him before the australian open. haidi: yes, there is so much in this story. it really has captivated newspapers and the media here. let go to paul allen in sydney. we know there is a lot of unknowns to do with his vaccination status, whether he had covid, after he had covid, the action status, whether there was due process by the border force. what are we watching for, given that time is of the essence as we count down to the open? paul: it is a tangled web in the the government has indicated that if he was to win the question, they would simply revoke his visa. the rules are very confusing. one of the questions revolves around whether the organizers of the austrian open granted an exemption.
it wasn't really t heirs to grant. enter coverage claims he had covid, apparently he contracted it on december 16, which was six days after the application date for the exemption closed. so it is a web of eating -- a web of multiple competing arguments. there was a group of supporters outside the courthouse there in victoria. and we can see the bureaucratic web start to get untangled. of course we wouldn't be here if djokovic had just gotten vaccinated. shery: it is understandable the public outcry in australia given how the lockdowns have continued for weeks and many people are separated from their families for a couple of years now.
not surprising now that we are seeing this economic hit in australia, as well. paul, tell us about the gdp numbers. goldman, citi, nomura, cutting their outlooks for australia. paul: that's right, i will get to those cuts in a moment. but just to give you the background, too, we have had omicron cases surging. they fell back a little bit today, 20 cases in new south wales, 24 in victoria. that led to the huge numbers over the weekend where nationally over 100,000 cases of omicron across the country. it has a just put pressure on the hospital system, but transport workers are being told to stay home if they are symptomatic. that has seen a return to these empty shelves, iran on all sorts of essential items, not just food, but rapid antigen tests, is well. this has led to the reduction in the outlook for growth in australia. goldman is saying already 38
million hours of work have been lost in just 10 where, so it has cut -- lost in just january. citi has cut the outlook from 2.3% to 1.3%. reductions in the growth outlook for australia. but to see these bouncing back in future quarters once australia presumably puts this behind us. paul: paul allen in sydney. many other countries are trying to put them behind them, but it is not really working out. even china, now reporting its first global cases of omicron. two infections found in a port city just weeks before the winter olympic games are set to begin. for the latest let's bring in our chief north asia correspondent stephen engle, in hong kong. what is being done to contain this latest flare-up? stephen: they are speaking to the zero-covid strategy that has
helped contain china and surrounding areas from omicron until now. we had the first couple of cases , community-transmitted cases, in a port city to the southeast of beijing, three weeks ahead of the start of the winter olympics. there is obvious concern that it is coming closer to the winter games that start on february 4. we all know about the lockdown and the public outcry's, people being contained in their homes. the entire city of 14 million in ci'an. -- the entire city of 14 million people in xi'an. we heard that they want to test every single resident of the port city, 15.5 million people. that process has begun. this is in addition to other restrictions being imposed on shenzen across the border here, there were a couple of cases of
covid found there, so they are urging people ahead of the new lunar new year not to travel. and the city of wenzhou also had some cases. china doesn't have nearly as many reported cases as we have seen in the united states or europe. . they had 90 new cases reported on saturday. but when you have a zero-covid strategy, that means zero. that is 92 more cases than is tolerable in china. so you will see a lot of restrictions ahead of the winter games. haidi: i know that by your bookshelf, you are working from home, as well as many people are in hong kong. what kind of measures are we seeing there? stephen: obviously, hong kong is caught between -- it is in a pickle because they have a covid zero strategy as well but they don't have the domestic economy
that mainland china has. cathay pacific, all their flights are international flights. just 2% of their normal flights are scheduled. these new restrictions that began on friday will last two weeks. they still 1-2 -- they still want to nip the omicron search ahead of the holiday when people gather together. and they have big banquets and the like. that will likely be called off. compounded by the fact that there was this big birthday party attended by a number of government officials. many of the people who attended this birthday party, 180 have been set into quarantine. so -- and they are running out of quarantine space, and quarantine hospital beds, as well. there is not a lot of cases, but there is concern it could spread
because of the low vaccination rate. only 62% of the population here has two shots, and in excess of 70% that has one shot. you are starting to see that hong kong will mandate at least one vaccination by the end of february. we are seeing an increasing number of companies, including the subway operator fdr corporation, will mandate its employees to have at least one shot by february 20 3, 2 shot or april. so if there was tolerance up until now, they are saying, we can't mandate vaccinations, we can encourage them. but hong kong has one of the lowest vaccination rates in developed economies around the world. it is caught in between. it is in a pickle. they cannot open up because they don't have the vaccination rate
up to where they say is acceptable to open up, in excess of 90%. so we will have to see. these restrictions, including no dining in restaurants after 6:00 p.m., gyms are closed, bars, sentiments. , theme parks closed. it will be two weeks of relative pain until they can reassess and see if they can open up for the lunar new year holiday in a few weeks. haidi: our chief north asia correspondent, stephen engle, there with the latest. . vonnie quinn has a first word headlines. vonnie: that biden administration may slap export controls on asia if it seizes -- from ukraine. sources say the white house is discussing potential restrictions on technology and electronics. the new trade rules could apply to shipments from the u.s. to russia, and possibly to some foreign-made products. the u.s. aims to stop russia
from certain electronics. western allies are entering high-stakes talk this week aimed at defusing tensions with the kremlin. the european union is still raining the impacts of any trade restrictions. u.s. troops in japan will no longer leave their basis, in a bid to stem the spread of covid. two u.s. bases are seeing record virus outbreaks. local officials blamed the problem at least in part on u.s. forces. okinawa has the bulk of the u.s. military personnel. sri lanka wants to restructure its debt repayments to china. the country is searching for funds to foster its foreign exchange reserves and service loan obligations. sri lanka hosted the chinese foreign minister in the weekend and reportedly made the request
then. sri lanka turned to china for loans to build infrastructure after the civil war ended in 2009. china life insurance, one of the biggest insurers on the mainland, says its operations are normal. its chairman is currently under investigation by the country's top anticorruption watchdog. they will hold a meeting soon to decide on an acting chairman. the company says it will cooperate with government officials and support the crackdown. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: coming up next, the u.s. inflation print headlines coming up ahead. inflation hit a 40 --year high. an amp senior economist gives as her outlook plus. the first conversation from the forum, a fast-growing fintech
>> it is a confusing report. >> i am not sure if it is all clear here. >> this report suggests the economy has normalized. >> there's nothing in the report that would change what the fed signals. >> all the signals are that the labor market is tightening. >> the job market has normalized. >> we are still moving along around a full employment dynamic. >> that should equal that the fed should normalize its monetary policy. >> the fed cannot escape the inflation issues. >> it's all about inflation, which is getting the fed nervous. >> the presumption is absolutely a hike. >> they will change this thing and they are going to hike aggressively. >> four rate hikes on the table.
>> monetary hike is definitely a go. haidi: our guests reacting to the december jobs print. u.s. hiring rose again in december though the pace was slower than expected. with the omicron wave rapidly spreading, just how bad and during the economic toll could be could take some time to determine. let's get analysis on what conclusions we are drawing from the data. we are joined by amp capital senior economist diana mousina. thank you for joining us, it has been quite some time since you have been withd us. when you look at thatiana later this week, coupled with expectations from the fed, what does the recovery landscape look like? diana: good morning, great to talk to you again. i still think there is more upside go for the u.s. labor markets. if you look at the actual level
of employment compared to pre-covid levels, the level of employment is still 2% below where it was during covid. not everyone has rushed back to the workforce despite the fact that there has been a big rebound in gdp growth in the u.s.. in australia the employment outlook is much stronger than where it was before covid. the participation rate in the u.s. has further room to increase as well, a lot of people have decided to permanently remove themselves from the workforce because they are concerned about the virus or because they have to care for people or children who are too young to get vaccinated at this stage. a few different things going on i keeping employment below where it was before covid in the u.s. there is upside to go in the employment growth and in the participation rate in the u.s.. we continue to see that job growth in the u.s. will grow in
the next three months and i think that is why the fed may be rushing. definitely more hawkish than what we have seen the past few months. they might decide to wait until june if the labor force job growth is not as strong as they were expecting. economists were expecting job growth to be 450 thousand dollars and we got just under 200,000. so the labor market i wouldn't say is --. clearly, inflation in the u.s. is -- haidi: i was going to jump in and ask about australia. we are seeing the downgrades left, right, and center. is the reason for letting covid and reopening in december was
really to get the economy back on track and that we are hearing of these supply chain issues and labor markets really clouding the economic outlook. diana: certainly, i would never have been of the view that letting the virus spread would mean a big increase in economic activity, and that letting the economy reopen would have allowed gdp growth to rebound. we are seeing many indicators like credit card spending, retail foot traffic, mobility indicators in new south wales and victoria and across australia, have been falling because people are either worried about contracting the virus. the huge increase in cases, particularly on the east coast, will just mean economic activity in the first quarter will be weaker than we thought. back to a few months ago when we thought gdp growth would raise
1.5%, we are actually now at .5%. shery: what are the prospects for the chinese economy now that we have the first omicron cases and they are insisting on going along with zero-covid strategy? diana: it will mean more disruption in terms of the manufacturing and the industrial sector. china has seen issues of the past few years because of closures of factories. that translates through to the rest of the global economy, because it means supply chain issues will continue. which is why i think inflation is still likely to remain pretty high. we are still seeing disruptions in the supply chain. chinese growth will be much lower in the next few years than where it was before covid. the insistence on keeping that covid strategy down to zero cases just means that is more likely than ever before, i
guess. shery: just quickly, going full-circle here in the u.s. house speaker nancy pelosi is talking about more stimulus measures. what will that do to inflationary pressures? diana: it depends on whether they get any offsets to those stimulus measures. we know that in the build back better plan, even though they are talking about increasing stimulus, the economy may be taking that away through higher taxes. it will not necessarily put pressure on inflation if they won't counter those measures with higher taxes. i don't think it is the exact right time in the u.s. for more fiscal stimulus. shery: we will be watching. they cnet, always great to have you with us. senior economist with amp capital investors, thank you.
>> u.s. troops stationed in japan will not be leaving their basis except for essential reasons to combat covid spread in those areas. let's bring in our bloomberg editor for more. what do we know about the implications? >> it has caused some tension between tokyo and washington, of course. what we know is that prime
minister fumio kishida said that tokyo and washington agreed that the u.s. forces stationed in japan will not leave the base except for essential reasons. that obviously can be somewhat open to interpretation, but the basic message is clear. regional leaders in japan have blamed u.s. forces in part for this virus which has led to the kind of surges japan has been very intent on preventing. haidi: american bases in japan have always caused tensions between the two countries. what are we expecting in terms of long-term implications for the relationship? tony: well, that remains to be seen. it of course doesn't help.
this is a public health crisis, if you like. and the sense of the talks that were held at the end of last week, which involved people like the u.s. defense secretary lloyd austin, who himself is in quarantine because of catching covid, it was very much that they are trying to limit it to a practical approach to dealing with the problem. shery: bloomberg editor tony czuczka with the latest on infections in japan. and of course we are talking about catching covid, we are now learning that new york congresswoman alexandria ocasio cortez has tested positive for covid-19 despite being fully vaccinated. she is experiencing symptoms and recovering at home. we are also watching and expecting that virtual court hearings for tennis star novak
djokovic -- these are pictures outside the hotel in melbourne where he has been held, after his visa was canceled before the australian open. we will have more on that. this is bloomberg. ♪ every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities.
su: we are tracking the fallout of the supply chain crunch. these are the top stories today. a logjam at the port of new york and new jersey. hundreds of workers are either ill or quarantining while cargo volumes continue to search. that is causing lead times to five days compared to an average of just under two days. omicron is threatening food supply in the u.s.
as workers get sick throughout the supply chain, shortages in grocery stores are all about certain. and on top of the 2020 style food shortages, labor shortages may also spark a feedback on wage and food prices. shipping companies and software developers are experimenting with self-driving tracks, as the driver shortage was worsened by the covid-19 pandemic. one transport services company and fedex are among the operators testing automated big rigs. taking a look across the commodities market,. . we have copper advancing amid the interest in kazakhstan that nation accounts for a large supply of the world copper. also watching oil, which started 2022 with a bang, a market that was originally concerned about the looming surplus for the year.
west texas intermediate and brent futures have surpassed the $80 a barrel mark last week as the world shrugs off the omicron variant, they do not think there will be negative impacts. a host of supply constraints hit several opec producers, as well as north american producers in canada,. and. it is extending to russia due to the kazakhstan unrest -. bloomberg subscribers can read the stories on our supply chains newsletter. shery: u.s. unemployment rate fell below 4% and wages jumped last month, adding to evidence of a tight labor market that is expected to cause the fed to lift interest rates as soon as march, despite payroll growth. labor secretary marty walsh spoke to bloomberg. >> following the report. >> in 20, the president -- the
american rescue plan. since that time, 6.4 million jobs have been added. 86% of people are back to work compared to pre-pandemic. we have the strongest liberal report. since the. 1940's. we know in 2022 that we are still living with the pandemic so we have work to do as we move forward. the president is focused on bringing inflation down. his economic policies continue to work. we will continue to move forward in 2022 to make sure we get americans back to work and continue our strong economy and economic recovery. >> the unemployment rate, the headline number, secretary walsh, two years ago that was unthinkable. that the black unemployment rate actually climbed from the data i am looking at now. we are trying to understand what you're doing in your department specifically to do something about that. >> it is really unfortunate.
last month we had a nearly four point up in the black and implement rate, today we had an increase. also the black female and employment rate went higher. we are working to make sure that we continue to create opportunities whether it is through work training, workforce development, build back better. aside from the legislation, he wants to create pathways in communities, particularly the black community. he wants us to focus on that. equity has to be at the forefront of our recovery. in their bipartisan infrastructure law we asked, we will be talking about investments onto the street. we need to make sure the black and latino community benefits from these investments and creates opportunities for these jobs. >> another big focus of the administration and for you personally has been vaccine mandates. i understand the supreme court will hear some appeals today related to those mandates. how do you plan to enforce those mandates, what is the plan?
>> let me just say, today is a big day. on the issue in front of the supreme court, number one, legal experts say we have the legal authority to do it. number two, medical experts support us as well on this. number three getting this past would be a tremendous help in making sure we keep people safe and with the omicron variant jumping up, we have support, whether it is vaccines, testing, or masking. interested to see what happens. i think with enforcement -- many companies are doing this already in the united states. we will enforce it. we will make sure that if the supreme court rules in the way that they -- that i hope they do today, we will enforce it. but i don't think it will be an issue of enforcement. many companies are hopeful this does go into existence, because they want to get people back to work and to keep their employees
safe, quite honestly. haidi: that was the u.s. secretary of labor, marty walsh, speaking with bloomberg's jonathan ferro. coming up next on "daybreak: asia our first conversation on the asian financial forum. a financial services company tells us about their solutions for wealth management. this is bloomberg. ♪
vonnie: u.s. inflation may hit the fastest in four decades when data is released wednesday, underscoring the shift in the federal reserve's approach to monetary policy. it comes with the u.s. cpi rising 7% in december, up from 4% the month earlier. producer prices surged nearly 10% last year. new york reported almost 80,000 new covid cases on sunday as the state passed -- full infections since the start of the pandemic. daily cases almost doubled over the last week, with hospitalizations raising rapidly, and fatalities trending upward. speaker nancy pelosi says there is an opportunity to add coronavirus relief aid, to federal legislation, if the white house asks. china launched mass testing in the northern city of tianjin, as
it tries to maintain its zero covid policy after confirming two locally transmitted omicron cases. meanwhile hong kong's financial secretary warns economy will take a hit as a variant makes hold. goldman sachs has cut their forecast for growth in hong kong. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. ♪ haidi: let's look at how markets are faring even the omicron concerns. we did see a slightly more needed number when it comes to cases in new south wales. of course a lot of people are doing these rapid antigen test that don't count towards the state total of cases. downside on the asx at the moment. really feeling the pressure with those new numbers from the u.s. and expectations of a high inflation print this week as
well. also concerns over how the chinese economy will stay resilient, facing the omicron outbreak, and the subsequent restrictive measures being taken in parts of the country. new zealand, also on the back foot so far this morning. also a big week when it comes to testimonies, really watching fed speak this week in terms of what we can expect in that next leg of monetary policy. shery: yeah. we will be watching chair powell on tuesday, on the senate banking community faces questions before his renomination to a four-year term. . it is that time of the year again, the annual asia financial forum in hong kong. among the speakers is our next guest. his toolbox for wealth managers such as blackrock and credit
suisse, that is perhaps best summed up as private banking in a box. prive technologies president david lee joins as from seoul. thank you for your time. we continue to see the spread of omicron and more social restrictions in place. how is that affecting the biggest trends you are seeing in fintech? david: thanks for having me. great fun to be here on the show. big fan of the show and of you guys. thanks for having me. in terms of omicron and how things are, fintech has been very developed. i think the omicron virus, they need to have a new way of managing services, including wealth management is important to the development of fintech, in terms of remote capability for advisors and their clients, and using digital trilogy to
digitize wealth management and provide a digital form of private banking that we provide as a platform. shery: are regulations catching up with the changes you are seeing in the industry? david: i think regulators are helping us tremendously. it is actually on us to be able to educate, to provide guidance and to ensure that they are possible and probable regulations that will help the end consumer. that is the end game, to make sure people have the wealth services that they need. in terms of uncertainty, there uncertainty about their future, we can provide them in a seamless way. haidi: what do you talk about when you talk about unbundling and rebundling on the retail
side? david: we are talking about decentralized finance. essentially, it is the fact that right now the traditional way of doing banking and wealth management is to provide services through one provider. if you go to a bank, you will probably get your account and services at bank a, but here there is an ability to connect to different banks all over the place. you can have your wealth manager at bank a, you can trade strategies from bank b or asset manager b, and you can execute at bank c because they have the lowest fees. that is being accelerated. shared data is very important for the expansion of fintech and how it can affect and help the end customer manage his own
wealth. haidi: e have some really big-name backers, blackrock and samsung among them. what is next? a public listing in the near future? david: you are putting me on the spot here. at this point i can't comment on any public listing. if and when our shareholders approve or if they don't approve , and will definitely speak about it, but from my mouth to your ears, if we announce something, bloomberg will get the exclusive. don't worry. haidi: all right, so what are the big growth -- you are looking next to push through into the new year for the business? david: we are just really excited. generally, portfolio management, people understand it now.
great channels and data providers such as yourself, bloomberg, people are thinking about how can i interest, how can i get a portfolio that will be able to ascertain the different issues that are coming to the market today, such as the api increase, such as employment numbers, different inflation numbers, all these things we talk about in the current session. places such as korea where i am right now, fintech, along with hong kong, obviously hong kong, the cdc has been very helpful. these are things we can definitely try to assimilate and to provide through these different markets. fintech expansion and investment is at an all-time high this year. last year it was at $10 million in asia and it is only growing.
you are seeing a lot of nontraditional financial companies coming into this. shery: david lee, thank you so much for joining us. we will hold you to that promise of a bloomberg exclusive when your apo comes forth. thank you so much. [laughter] -- when your apo comes forth. david: thank you. shery: south korea, we have the trade there, and some of these stories we are watching, the president will hold a briefing ahead of the start of this apo. a $28 billion listing, set to be south korea's largest ever. data showing that global funds invested more than 5.5 trillion, one in december marking a 12th street month of investment. and president moon jae-in is meeting with senior secretaries as the omicron surge continues, in a few hours time, 2 p.m. local time, haidi.
haidi: watch our interviews are no interactive tv function, tv . . you can also dive into all the securities and other bloomberg functions that we talk about. you can become part of the conversation and send us instant messages on our show for bloomberg subscribers only, check it out at tv . this is bloomberg. ♪
haidi: a quick check of the latest business flash headlines. this company has reportedly commissioned agents in hong kong to speed up the disposal of its assets, this after it missed a loan payment, facing reports that the developer is seeking buyers, including funds for its commercial property. amazon is said to be appealing the supreme court hold on its arbitration case against future retail. sources tell us amazon urged the top court to lift the hold last week, and is likely to seek an early hearing on the case. the e-commerce giant is trying to block the sale of future's warehouses and stores to reliance industries. mukesh ambani's reliance industries is paying nearly $100 million for a controlling stake in mandarin hotel in new york.
it will acquire a share in the business and also seek to purchase any remaining steak from other owners at the same valuation. the transaction is expected to close by the end of march. india's biggest budget airline is planning to scale as covid outbreaks hit travel demand. it will reduce operations 20%, and will waive the fees it charges customers for changing flights. several proficient governments have imposed movement curbs, with just under 160,000 new cases reported nationally over 24 hours through saturday. shery: take a look at crypto assets, resuming the losses in the asia monday session. we had seen a rebound in the previous session, bitcoin up 1%, ethereum up 3%. we are talking about the largest two cryptocurrencies at september lows. not a great start to 2022.
despite the pressures in crypto assets, we are seeing the most bullish investors, like crypto centric hedge fund pantera capital, still calling and reiterating the long, bullish call on ethereum, hyvee. haidi: for more, let's bring in bloomberg's cross asset editor. what is the weakened action telling us about the crypto price outlook for the year, and given that we have heard from the likes of america talking about the simultaneous popping of bubbles, including crypto, this year? >> the weakened action actually showed that bitcoin held above 40,000. they did not look super great either, but as you mentioned, bitcoin and ethereum have fallen a bit in the past few hours. looks like there may be some steadiness here, but the long-term trend over weeks recently is down.
if you look at the longer-term trend of years, bowls are still saying that there will be increased adoption and utility for things like web3 and the metaverse, so even if we are having a temporary setback, you should be getting into this space. shery: despite the fact we are seeing policy normalization converge, is that the downtrend that you mentioned? >> definitely, there is at least discussion that the fed is affecting this, the fact that there may not be as much money sloshing around the system as there has been coming into the next year. so that is a factor that may be causing people to pull back a little bit. and bitcoiner ethereum are now much more correlated with risk assets. everyone was making the case that bitcoin was a good hedge,
it wasn't correlated with other things, but it has proven that it is really moving along with the s&p 500, along with some of those nasdaq stocks, a lot more than it was maybe a couple of years ago. haidi: there is a lens about the dominance of crypto. do we have anything new on that front? joanna: pantera capital is saying that ethereum will maintain its dominance. and of course you have all these other blockchain's, all these other networks like salina and others saying -- solana, saying they can do things better than ethereum. and ethereum is trying to do all these network upgrades and really changed their system quite a lot. j.p. morgan said last week that they don't think ethereum would be able to do that in time to maintain its dominance.
but pantera capital says, no, we think they will be able to. shery: and of course, the bloomberg lion air index, we follow it closely, it is putting the binance ceo's fortune at $96 billion. here is what he said when asked by bloomberg about his wealth in november. take a listen. >> i don't really care. >> about wealth, money, and all the rankings. i had an interview a couple of days ago where i said i am committed to donate 99% of my wealth away. shery: talk us through how we got here. joanna: binance is an amazing story, it is dominant in the crypto space, no other exchange, close. it was founded and it grew in an environment where there was very little regulation.
regulators had not started paying attention. they are paying attention now and binance is having to pivot work with these countries and figure out how they can satisfy what regulators want. but this great growth has enabled the binance ceo to hit what is quite an impressive net worth because he still owns a lot of the company, and that is not even include his personal crypto holdings, so it could be much higher. there is no pension that binance with its ease of use, it really is a fan favorite for crypto trading. people like using it. it has really succeeded in the space and that is how we got where we are now. shery: joanna ossinger, bloomberg's cross asset editor, joining us on crypto. we will be watching tsmc.
shery: welcome to "daybreak: asia" from bloomberg's headquarters in new york, i am shery ahn. haidi: and i am haidi stroud-watts in sydney. asian markets just opened for trade. asian stocks start on the cautious note as investors are bracing for bond market volatility with the risk of faster rate hikes. mainland china and hong kong are
recording community transmission of the variants. and our first interviews from the ubs greater china conference, our ubs securities chairman is among the guests. shery: japan is on holiday today celebrating the coming-of-age day, but we are watching the kospi. we are talking about some consolidation after finishing last week with the best in about a month. the korean won is gaining a little bit of ground against the u.s. dollar. but this is coming after the longest run of losses in over three months against the greenback. seven sessions of losses versus the dollar. of course we have expectations of the fed timing. the key data point to watch this week will be the bank of korea. it may raise its benchmark interest rate 25 basis points to 1.25 percent. japan is away on holidays with its equity markets closed, the japanese yen is under pressure against the u.s. dollar after a
weekly game forces the greenback back. due to the policy divergence we have been talking about for a while now, haidi. haidi: this is the picture, a pretty bleak picture in australia and new zealand. the iss is up zero .4%. our guests in riskier segments like technology and health care are seeing steeper losses. despite concerns over the resilience of the chinese economy, we are seeing a bit of a blackfoot session when it comes to the ozzie and the quantitative easing. commodities linked currencies as well. new zealand stocks are up 0.7%. when we look at the outlook, it is perhaps unsurprising that we are seeing this, given australian households are spending less as we see omicron
continuing to spread. there was also downgrades wind comes to future economic growth for australia as well. the fed is in focus, the selloff in the bond market the past week has investors bracing for losses. our chief north asia correspondent -- our correspondent in asia joins us now, garfield reynolds. the fed is expected to move more aggressively, we got the cpi print as well, what does that tell us? garfield: it tells us that we will see further spikes in treasury yields. even then, futures are falling, which has actually broken the path just about every day in the past week. we watched treasury features gain in the asian morning after treasuries sold off overnight. that in and of itself is a
difficult signal, some difficulties coming. we have cpi coming up on wednesday in the u.s., that is likely to add to the pressures. the fed is falling behind the curve. that kind of rhetoric will help to drive the fed toward higher rate hikes. we also have more investment grade issuance, absolutely piling into -- now before yields go to much higher. the technical process involved in hedging against about means treasuries get sold off in response. that spiral will send yields up on a technical basis. shery: when it comes to the u.s. equity markets, historically, stocks have performed well ahead of the fed rate hikes.
the gtv chart on the bloomberg is showing what the historical trend has been. u.s. analysts also saying that rate increases may not affect stock gains very much this year. what are the assets that you will be watching as we are expecting yields to continue raising? garfield: equities take a lot of watching, especially the tech sector, which has benefited more than the rest from the stay-at-home and the lower rates forever era that we seem to be in. the one thing is the balance sheet. in the previous rate hikes cycle, the fed raised rates quite considerably. this time, the fed has said they will move rapidly. that extraordinary balance sheet growth injected into the
economy, the fed is very antsy about leaving that part of the accelerator panel depressed at a time when inflation is taking off. they are wanting to normalize policy. so hiking up rates, equities can cope with that. the bigger question is can they cope with the shutting off of the printing presses, so to speak? i think that raises the dangers for equities. we saw the chart, they went so high, so fast. shery: those charts right now the risk assets really selling off in the last few weeks. garfield reynolds, thank you so much, our chief rates correspondent for asia and mliv contributor. you can follow his commentary on the markets live blog on bloomberg at mliv . you can get a markets rundown in one click, and analysis from
bloomberg editor's so you can find out what is affecting your investments right now. let's get to vonnie quinn with the first word headlines. vonnie: kazakhstan forces backed by russian led troops are pressing ahead with operations to restore control after crashing the biggest protests in decades in the south asian nation. the government said almost 6000 people including foreigners have been detained since the demonstrations broke out. the official death toll stands at 164 people, while the real number is thought to be higher. the biden administration may slap export controls on russia if it starts a war with ukraine. sources say the white house is discussing with its allies potential restrictions on technology and electronics. we are told the new trade rules could apply to shipments from the u.s. russia and possibly to some foreign-made products. the u.s. may also deprive russia of certain microelectronics.
european powers are set to be concerned about the economic fallout of any russia sanctions, we are told there is a risk of a explict with the u.s. over how strongly to hit moscow in the event it invades ukraine. western allies are entering high-stakes talks this week aimed at diffusing the tensions with the kremlin. u.s. troops stationed in japan will no longer leave their bases except for extensional reasons, in it to stem the spread of covid. areas hosting or close to u.s. bases are seeing record virus outbreaks. local officials blamed them in part on u.s. forces. because i emergency is in place across japan, including okinawa, which houses the bulk of u.s. military personnel. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg.
haidi: china has reported its first record cases of omicron, two cases in tianjin, close to beijing, weeks before the winter olympics are set to begin. chief north asia correspondent joins us from hong kong. what's being done to contain the flare-up, and give us the context of where we are seeing this flare-up. stephen: absolutely, china is showing that the zero covid policy is extremely difficult to maintain. even the fact that china is essentially closed off to the world, we have these two omicron cases in teen gene, the port city essentially of beijing, 70 miles to the southeast of beijing. the relevance of that is not lost on authorities in beijing just three weeks out from the beginning of the olympic games, to have an outbreak of 20 cases in tian tian, including two omicron cases that are
untraceable and not necessarily imported is a concern to authorities. this is in addition to that citywide lockdown, orders for an entire city to stay home in a city of 14 million. tianjin has 15.5 million people, in addition to other restrictions. they are advising people not to travel ahead of the lunar new year holiday or even during the lunar new year holiday. eastern china has also had an outbreak. so china is in a pickle. but with 92 new cases reported on saturday alone, it doesn't sound a lot by western comparisons, but 92 is 92 more than the authorities want with their zero-covid policy. so it is a challenge economically, at a time when factories are usually coming at
full force ahead of the shutdown that usually happens for the lunar new year holiday which begins on january 31. so potentially, this could impact shipping in tianjin, it could impact manufacturing, and hurt an already hurting chinese domestic economy. shery: let's talk about hong kong you are seeing more untraceable cases there, too? stephen: hong kong also has a zero-covid policy and it is in a pickle because it has a very low vaccination rate compared to other developing economies. 62% of the city of 7.5 million have both shots. little more than 70% have one shot. they want to get up to above 90% before they can consider relaxation. what has happened as of friday, we have two weeks of -- by comparison, not nearly as bad as china, but still somewhat of a
lockdown. we are at home, for the next couple of weeks. restaurants, you can't dine in after 6:00 p.m. bars, gyms, theaters and the like, other big social gathering places are being shut. . they want to nip this surge of omicron locally and caught at the airport in the bud. it is just another challenge to this city, which the financial secretary in his weekly blog yesterday, indicated and acknowledged what we all know. this lockdown, relatively speaking, will have an impact on growth this year, even that the government has not given its full-year forecast for 2022 yet. shery: we will be waiting for the forecast to come through. stephen engle chief north asia correspondent from hong kong and
working from home, as he talks about all the restrictions in the city right now. still ahead, china's property downturn and the battle against covid are emerging as top headwinds for the economic recovery. we will hear from the chief ubs economist dr. tao wang. staying with that, ubs securities chairman eugene chiang joins us. this is bloomberg. ♪
thank you for joining us. i am actually curious i know about ubs, you haven't really wanted to increase your stake in the securities business. we know goldman and j.p. morgan have already secured ownership. does that give you everything of your position? eugene: 51%. we were the first to apply for majority control in november of 2018. we are very happy with where we are. however, as you said, we are closing monetary policy. we want to increase our stake 67% already and we are waiting for the final regulatory approval. beyond that, we will continue to monitor the situation. we are celebrating the 50th anniversary this month for the
opening of the ubs securities in china. shery: what is the upside of that partnership, that you are not going 100% in for full ownership, just seeking a 67% stake? eugene: in china, you take things step step, and so far, we are working on our partnership with the chinese government. a good partnership where both sides are bringing good things to the joint venture. we enjoy wanting to make ubs securities even more successful, but for both partners. that is what we are doing. we will continue to monitor the policy and certainly try to expand further our presence in china over all. you mentioned banking, which is what ubs securities is focused on. shery: talking about monitoring policy how are you watching the virus situation there, because china and hong kong are insisting on a zero covid policy. how is ups trying to mitigate
that policy, and what is the impact on your business? eugene: covid impacts everyone, ever since 2020. we have been taking a very vigilant attitude as a part of the group policy, taking care of our staff. so far we have had zero infections as far as dbs group's 1400 people are operating in china are concerned -- ubs group. and consumption in the economy is getting further delayed due to the zero-covid policy. otherwise, i think the online economy, the new economy, beyond the physical part of the economy, overall recovery is still happening. that is why we see a robust export growth from china. this coming year, 2022, we are seeing robust 10% growth in export. domestic consumption should
increase as the covid situation eases this year. haidi: is that optimism reflect in your hiring plans this year? are you seeing their level of churn that was such a big story in the junior levels last year and other banks? eugene: our financial services is next, people -- our business, which is the financial services business, april are key. we are always looking for new talent. overall, we are always looking for the right talent. as we continue to focus on expanding our leadership position in investment banking, but at the same time, to expand our asset management business in china. all three businesses are expanding in china so naturally we are out there looking for more talent. haidi: can you give us some insight on the csrc's
consultation process for overseas listings? does it placed more onus on being it bigger bank? eugene: overall it is a very good program, if i may say so. if you read whatever they are putting out, it implies they have a fair amount of mutual understanding between the chinese and u.s. regulators, and for that matter, between the chinese, so that the chinese companies should be able to seek overseas listings, including u.s. listings. it could be back on the table for those chinese companies. so we as a major leading investment bank have been sponsoring numerous chinese companies going for overseas
listings. we are very happy so far and we are watching closely with our chinese corporate clients as well as the chinese regulators in close consultation. and hopefully, as you mentioned, some of the business, once the consultation papers get finalized next january and announced, i think we should see more overseas apo's, not less. haidi: always a pleasure speaking to you, ubs securities chairman, eugene qian. you can get a roundup of the stories you need to know to get your day going in today's edition of "daybreak." bloomberg subscribers, it is dayb on your terminal. you can customize your settings so you get information on the industries and assets that only you care about. this is bloomberg. ♪ s bloomberg. ♪
shery: china life insurance, one of the biggest insurers in the mainland, says its operations are normal after its chairman was put under investigation by the country's top anticorruption watchdog. let's bring in our next guest. john, how significant are the latest developments? john: china's top regulator began its inspection of financial institutions in october. china life is one of the most senior of those leaders to be placed under investigation so far. we don't have a lot of detail yet about what exactly he is accused of doing, but the company has, and said that their operations are normal and that they will hold a board meeting
to try and decide who the acting chairman will be as a response. haidi: what step are we at when it comes to the crackdown? it has been quiet for a while. does this suggest that there is a reassessment of rarities in the new year for the government -- reassessment of priorities in the new year for the government? john: xi jinping's anticorruption drive is in full swing but this is just one step in the multi step. the anticorruption regular has been going through various parts of the economy. previously in the national public security apparatus, they went through, there was a number of police officials placed under investigation. there were other part of the industrial complex, leaders were
investigated as well. it has been years since the financial sector has been looked at and we have seen people in placed under investigation. this suggests there may be more names to come, as well. haidi: our greater china executive editor, jean-luc there -- john liu there. this group has reported it will speed up the disposal of its assets after it missed a loan payment. the chinese property developer is seeking sources for its commercial property. and this chinese tutoring giant slashed 60,000 jobs last year due to huge losses. . the new orientals chairman says the sales plunged by 80%, citing beijing's crackdown on the education tech sector, and the
pandemic. he says the company spent more than $3 billion on stock severance packages, tuition refunds, and other expenses. india's biggest budget airline is planning to scale back outbreaks hit travel demands. it says it will reduce operations by 20% and will wave fees for changing flights. just 160,000 cases were reported nationally over 24 hours through sunday. coming up next, bitcoins growing mainstream presence is creating new billionaires, including the binance ceo. we will have details on the size, next. this is bloomberg. ♪ ♪
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>> breaking news out of australia, the number for november beating expectations coming in at 3.6%. economists were expecting 3%. certainly seeing that bounce back, a contraction of 12.9% seen in the previous month. continue to see uncertainty gathering when it comes to the outlook for the australian economy. consumer spending falling to levels comparable to previous lockdowns as omicron cases continue to surge.
over 100,000 cases in one day over the weekend. that is impacting people going out as well as the labor force with supply chains, supermarkets and other essential areas being impacted by workers affected by covid directly or having to isolate. that is not mentioning the shortage of rapid tests and the huge lines to get pcr testing. we are seeing in australia, as in many other parts of the world as well. the aussie dollar, a little bounceback. $71.83. overall, it down day for equities in australia as well. shery: one stock we will be watching is -- which will resume trading today. the stock had been suspended since our tovar. we have seen global ratings agencies affirm a partial deferral -- default as they failed to repay loans. moody's withdrawing modern man's ratings due to instrument to --
due to insufficient ratings. they had struggled with creditors demanding early repayment. modern land has financial advisors. trading underway in korea, australia, japan is away on holiday. we are seeing a broad downside in the markets right now. the -- losing ground after seeing investing about a month. we are seeing the korean yuan gain ground on the u.s. dollar after the longest run of losses in over three months. we will be watching the be ok rate decision later this week. kiwi stocks and australian stocks under a little bit of pressure. u.s. futures down .2% after the s&p 500 posted the worst start to a year since 2016. we are watching the price action in bitcoin and other cryptocurrencies. downside pressure with bitcoin headed towards $40,000 level. we had seen a surge to
prominence earlier last year, creating new billionaires including zhao who may hold the biggest crypto fortune of all. for more on this, let's bring in our cost asset editor jaron. the bloomberg index putting zhao 's fortune at $96 billion. here is what he told us about his wealth when bloomberg asked in november. >> i do not really care about wealth, money, rankings. i also own -- i believe a couple of days ago i said we are committed to donate 99% of my wealth. >> an incredible assent for this entrepreneur. >> it is impressive. and it is really what has -- it encapsulates what has happened with crypto.
binance is just a few years old and already its ceo is valued at $96 billion, that's even without his personal crypto holdings which are probably quite substantial. binance has grown up in that crypto environment which did not see a lot of regulation. binance came about at a time when there was a lot of demand for something that worked really well. people tend to like using it. it has become quite popular and is bigger than other rivals. zhao has navigated a lot of this pretty well so far with the caveat that there is a lot of regulatory interests and binance is under scrutiny by a number of countries in terms of how it manages things. haidi: of course we continue to see the bitcoin swoon deepening. what does the weekend price action tell us about pricing? >> at actually sort of held
above the $40,000 mark, bitcoin did. it stands for now, but it is headed down a little bit. we will see how it does as liquidity picks up into the week. it is definitely, in terms of action over the past few weeks, the momentum has not been there. it is not doing well into this year as it did into 2021. shery: there have been questions about the dominance of the number two cryptocurrency, ethereum. what are the issues here? >> the big thing is whether ethereum can hold on. it's the number two cryptocurrency edit is the dominant network by far. but, there are all these other rivals who say they can do pieces of what ethereum does much better. ethereum is doing all these
upgrades to catch up with rivals, and in some cases surpass them. but, can it hold on over the year? it is expensive to transact on the ethereum network. ventura capital said they think ethereum will be able to maintain dominance. jp morgan last week said they do not think it will be able to because there are too many rivals doing things too well for the cerium to catch up -- ethereum to catch up. haidi: you can of course get a lot more when it comes to the story, the world's wealthiest people in crypto, on the bloomberg terminal. you can check out to the rankings and all of the big stories that are affecting the world's top billionaires today. let's get you to vonnie quinn with headlines. vonnie: u.s. inflation may hit the fastest in four decades when data is released wednesday.
that will underscore the shift in the federal reserve approach to monetary policy. economists seeing cpi raising 7% through december and up 4.4% from a month earlier. labor department data may show producer prices surge nearly 10% last year. new york reported almost 80,000 new covid cases sunday as the state passed 4 million total infections since the start up in the. u.s. daily cases doubled over the past week with hospitalizations rising rapidly and fatalities trending upward. nancy pelosi says there is opportunity to add coronavirus relief aid to a package of federal legislation if the white house asks. china has launched a mass testing blitz in tengion. that is after confirming two locally transmitted omicron cases. hong kong's financial secretary warns the city's economy will take a hit as the variant takes hold.
morgan stanley and bloomberg? not -- bloomberg economics have already made their forecasts for hong kong. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: infections in the u.s. have doubled in a week. new york has become the fourth state to record over 4 million cases. johns hopkins bloomberg school of public health professor andrew pekosz says it can be a tipping point for the pandemic. >> the issue of why this virus seems to be so much more transmissible. certainly, it has mutations that can invade some of the immune responses that vaccines give you , but it really does seem like this virus is spreading better than other variants for other reasons. we don't really understand what that is, but it certainly seems like people are getting infected under conditions that previously were highly unlikely.
that is fueling this massive surge of cases. transmission is something that is really difficult to study in a laboratory. but it really is one of the things that omicron is doing fantastically better than any previous variant. >> is there a roe or zeta after omicron? do you just assume there is another variant after this one? >> there absolutely will be. this virus has already shown the ability to evolve, change and respond to its new host humans. it is now showing the ability to try to evade some of the immune responses that are coming down the line. i do firmly feel we are on a pass to make this disease much more mild, more contained, because we will have population immunity.
we will have vaccines that are effectively knocking down severe disease. we will eventually have antivirals to limit that. there are ways we can control this disease, but this virus will be around for a long time and it is looking more and more like we will have to deal with this like we with seasonal influenza. >> went to be get to that point where we have enough herd immunity, or just immunity in the general population with antivirals in vaccines where we can go back to life as it is and treat this like the common cold or the flu? >> i do feel like this surge of omicron is going to be the tipping point. with the massive number of cases, and some of the official counts are probably underestimates of the true number of cases that are out there because of a number of reasons, but this surge of omicron cases may be what really pushes us over the border to
enough immunity in the population so that transmission is limited, and therefore the likelihood of getting infected will be lower going forward. >> how do people avoid getting sick? >> it comes down to the basic principles we have been talking about. perhaps boosted a little bit. i am a big believer now that people should be wearing kn-95 masks, or double masking. i think this increased transition of omicron requires people to take an even greater effort to try to limit their exposures. masking is one thing, the other is social distancing, important to continue. do as much work as you can remotely. when you are going into situations where you are going to be exposed to people, realize you need to up your game in terms of what you need to do to
protect yourself and be wary of getting infected. haidi: johns hopkins andrew pekosz. the johns hopkins school of public health is founded by michael bloomberg. up next, we will be back to the ubs greater china conference. speaking with economists about how covid is clouding china's economic outlook. this is bloomberg. ♪
shery: -- [indiscernible] bloomberg.com shery: people are leaving the city, required to be tested within 48 hours of departure. temperatures are being checked that railways and highway links. all schools in the city are locked down. this is adding to measures elsewhere. we have seen a discouraging of residents to leave. most of their population have
been combined -- confined to their homes. gdp growth could drop to 4% this year if it's covid zero policy lasts longer or if there is a deeper property downturn. thus is the head of asia economics and she joins us from the ubs greater china conference. great to have you with us and a happy new year. it looks like covid zero is not working out so well. how big a risk is local spread of omicron and the measures authorities have taken to maintain covid zero affecting economic outlook? >> i think that is one of the biggest risks for this year. the uncertainties related to the pandemic, especially omicron, which is so transmissible. and how the chinese government is going to maintain its zero covid policy. in the next couple of months, there is no doubt.
i think the zero covid policy will be here, especially ahead of and around the winter olympics and the chinese new year. measures will be tough and that is going to hurt consumption. our expectation is that after march, in the second quarter, with this wave hopefully being largely contained and the winter over the peaks behind us, domestic restrictions probably will ees. that is -- real ease. that is a relatively benign scenario. if omicron somehow gets out of control, or there are still cases flaring up, i think authorities will maintain the tight policy. then i think the growth outlook will be in danger. haidi: we are getting the latest numbers at the moment, we are seeing 21 local confirmed cases of covid as of sunday.
which does not sound like a lot, but we know it is a politically sensitive year in china at the moment. this is not the only downside. when you add the weaknesses from the property sector, are there more downside risks than up? >> at this moment, i think especially compared to our baseline forecast, i think there is a bit more downside risk. our forecast of gdp growth is 4.5 percent, that is above consensus. most people are around 4% to 5%. that is based on the assumption that domestic restrictions will ees from the second quarter onwards and that the authorities will take supporting measures to stabilize the public sector as well as boosting infrastructure investments. the second part, i think we are seeing measures being taken. authorities have eased property policies.
the economic work conference has emphasized the stability of economic and social situations as well as the healthy develop into of the property sector. there has been easing credit too with property developers, as well as mortgage. we have also seen the earlier quota for government bonds being asked to be allocated. we could see investment picking up for infrastructure as well. nevertheless, yes, there is more downside risk at the moment. kriti: more -- haidi: more covid headlines, 97 local cases, 60 in hunan province. if we were to see a faster loosening of the covid zero strategy in china, or perhaps even stronger exports, how much upside could that provide to the economy? >> in the case that covid is controlled very quickly and the government eases domestic
restrictions and exports go up, the upside to our forecast i think is limited. we have 5.4%, so i think the authorities main objective is to keep things stable. it is not to get growth at or beyond a certain level. instincts are better on the export front. i think domestic support, the policy stimulus would actually be read review -- so that growth would be around 5.5% in the upside scenario. shery: so if you are not doing well, they boost stimulus, but if you are doing better, they are tightening policy. let's talk a little about the common prosperity drive. if you see the economy fading given those two forces you were talking about, how will that affect the broader public. >> a seam -- the common
prosperity has been a seam for years, but increasingly emphasized. as growth slows, i think that emphasis will intensify. i think the government will then focus on providing better public services and also expanding social safety nets. in terms of government spending, in addition to infrastructure spending, there will be more schools and hospitals and basic services and also -- reform and public housing. that of course will also help support the property sector with the government increasing investments on rental construction, and so on. i think that common prosperity team -- seem will certainly there with government spending tilting toward that area. shery: thank you for your
insights on the chinese economy. ubs chief china economist. if you missed any part of that conversation, you can watch that interview on the interactive tv function, you can also watch live and dive into any of the securities or bloomberg functions we talked about. become part of the conversation and send us instant messages during our shows. this is for bloomberg subscribers only. check it out. this is bloomberg. ♪
haidi: just over half an hour away from the open in china. sophia, stability is this year's top economic and political priority for beijing. what are we going to see to maintain that stability? >> good morning. last week was quite a week to start the week for chinese officials. what we saw friday was really a combination of support from the central government. we saw the csrc governor -- chairman, i should say, come out and say the securities regulator will come out in full force to prevent large swings in markets to prevent volatility. also, we had a scoop from our
finance team saying in the properties sector, authorities are encouraging banks to lend, removing a key metric that had prevented activity from picking up. there was a shift in sentiment friday, but authorities really have their work cut out for them. they are really busy and it is a volatile start of the year. haidi: we are watching the property market closely right now as we are also hearing -- will resume trading today. this coming after some healthier builders were also having debt troubles. what could be the next potential risk? >> it seems that every single property developer is in focus right now. you mentioned -- resuming trading, also agile managed to sell 3 billion you want in assets. remember evergrande's key meeting ends today, the three day online meeting where they are renegotiating a payment plan
, to see if they can delay payment of the yuan bond, seeking to avoid onshore default, which is more problematic for authorities and offshore. there's lots to watch out for. almost $200 billion of payments coming new for the sector this month. we can't really rest, there's just a lot of stories, a lot of repayment pressures for this sector. shery: you will keep us updated on those. our chief china markets correspondent. as we are discussing, those stocks we are watching include agile. of course we are seeing that -- sell 14 properties. modern land set to resume trading. china life being probed by beijing for corruption. alibaba hitting $130 billion. we're also watching tianjin related shares, we have seen 21
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>> 9:00 a.m. in beijing and shanghai. buckham to bloomberg markets china open. i am yvonne man. we are counting down in hong kong. the top story this morning, tennessee's it's its first omicron cases in the community igniting a mass testing campaign. a city of 14 million people. isn't stocks struggle. u.s. features dipped as investors pay for my bot --