aftershocks, more than two dozen buildings collapsed with reports of people collapse and destruction to some factories. we will have a live up date from taipei. higher commodity prices and solid u.s. economic data, brent crude holding near 22 month highs on supply and geopolitical concerns. plus we have a great lineup of guests this hour, including check on global supply chains with the executive director of the port of los angeles. stocks and bonds under a lot of pressure as we speak on speculation major banks will keep rates for higher for longer. fed speak will be scrutinized for clues on whether jean remains live for the start of easing.

the msci asia pac down at session lows. taiwan the biggest earthquake in 25 years. market still open which is a good sign for investors. a strong dollar story, it has a backward some of its workers from chip lines. taiwan is important because it accounts for more than half of the world's network devices. a strong fix yet again today. let's get more on the impact of that powerful earthquake. adrian, what is the very latest

there? >> we understand there has been one fertility from the quake so far and that seems a blessing given the magnitude according to the government was the strongest in 25 years. the 1999 quake killed more than 2000 people. this hit on the east end of the island, relatively remote to taipei and the big -- at least 26 buildings, i'm not sure of the scale of these but some of them may be quite small, have collapsed, we understand. risky efforts are underway to try to save those people who may be trapped. however, within taipei which was strongly hit by the quake, with buildings swaying and suspension to the subway system and other services, live seems to be back to normal.

everything is operating as normal. haslinda: is there any sense of the kind of help that taiwan might need? we know that china has volunteered to help in its efforts. >> the president has announced an emergency response office to be carried out. she has said the taiwan military has been asked could -- to contribute. taiwan as a government and economy and community sectors that are geared up to deal with catastrophe. it is an island which is prone to earthquakes, it had major earthquakes in 1999, plus one in 2016 which killed more than 100 people. i would expect that -- the

military and corporate sector, united microelectronics are evacuating some facilities. they did as a precautionary response but not because of any damage. so it is very much in island population which quickly clicks into gear when there is a severe in me this. haslinda: there is a sense of comfort that the markets are still open. the taiex is down, give us a sense of the sentiment in the market about this earthquake. >> for those people trading in the market, they are very much aware that taiwan is a relatively resilient economy. it has great reserves of funding

and has shown itself consistently able to deal with external shocks. that's one of the reasons why taiwan was able to handle the pandemic better than most economies. it's something that traders are mindful of and i think i would underline that we do need to be mindful of any news which may emerge from the beast, if there is evidence of significant catastrophic damage, the sentiment may worsen but i think in many ways people are just getting along with their lives and the trading day. haslinda: we are getting reports that 56 people have been injured in the earthquake in taiwan. what can we expect in the coming hours? >> i think we will see the injury told climb. i'm a little concerned that the death toll will climb.

in 2016, i think about 109 people died in that quake. more than 100 of those for tallies were in a single building. particularly in the remote areas. haslinda: thank you so much for your insights. let's get you to japan and get to the tokyo euro chief who joins us from tokyo. take us through the very latest. >> i think japan has gotten off relatively lightly with this earthquake. while it is close to the border with japan, the areas that are

-- they are lightly populated. even according to people i've seen on twitter, on the main island of oak in our which is the nearest large population center, there was much of a thrill voted near. at this point everything looks kind of all clear. so in that stance vacations are back to normal, i would guess. haslinda: were also hearing that japan airlines have redirected their flights. any updates on that? >> as far as i know one airport has been reopened so presumably some people have been inconvenienced by delays or having to go find one is in a --

in place. what else has come out of this, china has offered to provide support to taiwan. japan has also come out and said that japan stands ready to provide any support that taiwan would need. although taiwan as we just noted in that previous conversation with adrian, can deal with these situations, it is very much kind of take turns and offer support. japan has always been very grateful to taiwan for being the first government to come forward in the 2011 quake and offer its support. those kinds of friendship are very important among these countries that share this common danger. haslinda: thank you so much for that, or tokyo bureau chief.

still ahead this hour, we speak to the port of los angeles about its growth strategies as it discusses the baltimore bridge collapse. join us, inside credits -- why the yen is effected to consolidate near recent lows. and when they see the line in the sand for intervention. keep it here with us. this is bloomberg. ♪

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haslinda: welcome back. markets recalibrating higher for longer on the back of better than expected data out of the u.s. suggesting the economy is pretty resilient. look at where we are in terms of yields, hitting the highest levels this year for 10 year yields, topping the key level of 435 and asian yields also higher , tracking the u.s. as we speak. in terms of u.s. futures and how they are pointing in terms of how the u.s. will play when it is back in the market. s&p futures down .10%, losses do for the nasdaq and dow jones futures.

let's get perspective on the bed , chief economist, as well as our bloomberg opinion columnist. markets seem to be taking economic good news as menus. >> the u.s. narrative has had legs to run. we expect a slowdown happening the first half of this year but we have had a string of very strong economic data coming from the u.s.. even though we had a couple of fed speakers basic -- basically singing the same tune, saying there will be cuts to come. looking past all the fed talk and thinking what if the fed doesn't really cut rates this year? that's going to throw a big spanner into that scene. haslinda: and what if the fed is actually behind the curve and

get surprised by economic data which turns for the worse? >> there is a big risk of that happening. that is one of the key risk we see in terms of the very benign scenario of the global soft landing. the issue is that we still have a couple of prints coming up before the june fomc is self. the base effects from last year, you're going to see quite a big drop in terms of u.s. inflation numbers. haslinda: good news is good news, we should be celebrating and not be depressed despite the fact it was designed to delay the first-rate cut. >> it is focused primarily on the reaction to that ism number. cast your eyes beyond the united states and you will see some key

global bellwether starting to crank up. we've had strong export figures on south korea, and we are also seeing some suggestion and activity has been offered in china. the question is could we -- are people really noticing come have that become so bearish that -- i agree with selena. there is no suggestion, nor should there be, of panic at the fed. j pound -- jay powell has made it clear there is nothing to fear. he has set a couple of times we are well into restrictive territory. not just restrictive, but well into, which means policy can still be failing tight, even if they ease up a bit. haslinda: but this is a market that wants to keep believing that the rate cuts are coming. we've seen expectations go from seven to 32 perhaps even two now.

and yet we are seeing others at a record high. >> you you -- look at the yield story. if you look around outside of the u.s., things look really soft at a moment. i think it's quite a logical conclusion, people will still be looking toward the dollar and the u.s. equity markets. that is as long as the fed sticks to its guns and says that rate cuts are coming. haslinda: what are you betting on, where are 10-year yield headed? >> we are looking for a steeper car. the 10-year yield is very much a reaction to where the real rates are. as you said, powell believes we are well into restrictive territory. it is still fairly restrictive,

even if they lower the rate a little bit, it really doesn't -- not only will they just start to cut but there will be a series of cuts and not ready going into 2025 itself. >> we have seen how indonesia has had to intervene and prop up the currency. >> indonesia has been very, going back to the 1997 period. there was what looked like a one-off out of cycle hike late last year. the fed leadership, keep your eye on the jefferson -- the

message really hasn't changed. it's just not going to be 2008 style rate cut cycle. it's not going to be a 2020 style, is going to resemble something more like the mid-1990's, where there are couple of midcourse recalibration's. i think that story is still intact, and they don't have to rush. haslinda: what does it mean for asian markets, higher for longer? they were ready to cut. what are the implications. >> is going to be very tricky. on top of the intervention that dan talked about, the window to cut rates is closing, i would

say. or at least they will have to delay it and wait until the fed pulls the trigger. so it is a tricky period because growth is a little bumpy. i think it will be a little bit mixed, this exception being china because china's policy on stimulus, their coming close to the 5% target they have set. one thing to keep in mind will be biting her nails. there's so much hope being put in to help the sector for hospitality, for entertainment, etc.. will it be able to give a big lift to the skate board economy with growth around 2% or less. the issue is that asian central banks cannot put down their guard because as long as the

dollar keeps going, yields remain high in the u.s., there was still be asian fx and the weakness we see in the japanese yen is adding to the pressure. haslinda: how low can they go in terms of the yen and the yuan. the way the pboc has been supporting itself in the friday -- wait until you see >> >> what they have. they will continue to hold the line and their surveys. the boj is a completely different story because the job morning has stepped up. if you look a little bit long redo expect the boj possibly will still go for policy normalization, meaning it could possibly hike rates.

as yields rise, think it will narrow the differential between the dollar and japanese yen. but is it enough to reverse the overall trend? short term i think you also have a lot of worries. haslinda: joe biden and xi jinping talking to talk. how were you parsing through that meeting? >> the pressure definitely is on tiktok. yellen is going to make a trip down to china soon and on her agenda she is talking to be about china's industrial overcapacity. so i think we still expect it will be a lot to address the issues. industrial policy sounds like a little bit of overreach, actually. the question is whether you will get any of the points between the two big powers, we still

really have to wait and see. haslinda: geopolitics can hamper the growth you have been talking about. >> sure, it can, but i wouldn't expect too much in the way of market moving material from any biden-xi calls. the whole purpose of the call is to tame things down and keep things moving along. the ideas that the tensions don't become explosive. by the way, it is time we started seeing the dollar as a geopolitical asset for the united states. haslinda: thank you so much for your insights today. an update on the earthquake near taiwan, this is the worst earthquake in 25 years, 7.4 in magnitude. at least 26 buildings have collapsed. tsunami warnings have been downgraded but aftershocks are still persisting as we speak. china is highly concerned about

the earthquake and is willing to offer taiwan disaster relief assistance according to the chinese government office that handles matters related to taiwan. we will bring you the very latest, at this point in time at least 56 people are injured from the earthquake. many more had. keep it here with us. this is bloomberg. ♪ whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice... i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial. so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride?

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haslinda: now to some top corporate stories we're tracking. home sales for march longed to $590 million, that falls in 85% annual slide in february. the cash crunch for the company that's already facing competition. it said last week it would miss its annual reporting deadline. intel said its manufacturing

operation may not reach a breakeven point for several years. sales of nearly $19 billion in 2023, down from $28 million a previous year. company shares fell in extent -- expanded trading after disclosing the numbers. the u.s. is said to be asking south korea to drop restrictions on chips. officials want seoul to tighten the flow of technology use for making high-end logic and memory chips. china is a key trading partner. in the markets we are checked -- tracking chip stocks on the back of that earthquake that hit taiwan, the worst earthquake in 25 years. reaction has been muted in the

markets, umc also in negative territory. the losses are pretty much in line with what we are seeing in the market. tesla sales drop since the early days of the covid pandemic. it fell short of analysts average. byd currently down by 2.5%. show me down by 3.5% after surging on was 15 yesterday. plenty more had. th

haslinda: welcome back. china market shares heading to lunch and the csi 300 index in

negative territory, down .3%. pretty much in line with the rest of the region, under pressure as investors mull over what the fed may do on the back of higher than expected data out of the u.s., for china and particular investors are waiting to see the stimulus that may help to prop up the markets. shanghai down .3%. this is currency we are watching, the yuan under pressure. despite the fact that we saw very strong fix versus what was estimated. the currency is struggling to gain some strength. we are also keeping an eye on the nikkei to 25 as it comes back from lunch. the question is when we might see intervention from the boj,

in terms of where it is headed. 152 is the level we saw intervention the last time but some say this time around it could be 155. bank of america weighing on where it sees the yen headed. it says begin may plunged to 160 per dollar if the fed does not cut soon enough. on the back of that we are also keeping an eye on the earthquake near taiwan. the worst earthquake in 25 years. there keeping an eye on tsmc, the chipmaker. it has evacuated some employees and some operations have been installed as a preventive measure. at least 26 buildings have collapsed and tsunami warnings now downgraded along china as well as the taiwan coast. were also getting a response from micron, saying it is evaluating operations in taiwan

after that quake. joining us is robert lee. perhaps it is too early to talk about supply chain reductions, what is your initial reaction? >> that's right, the obvious first concern is for the local population. somewhat fortuitously, the earthquake has happened around 20 kilometers south of a beautiful tourist destination on the east coast. the majority of the population of taiwan lives on the opposite coast, on the west. so that should mitigate some potential fallout from this. in terms of the supply chain and tsmc, most is on the west coast of the country so it is somewhat geographically different from the epicenter of the quake

itself, that will mitigate potential fallout from the event. earthquakes, maybe not to this magnitude but they are a relatively frequent occurrence. tsmc and its peers have very well-planned protocols which involved shutting down production almost instantaneously, evacuating plants or whatever to ensure the safety of their employees. from what we can see in the moment it seems to have worked fairly seamlessly on that front. it is a little early to say but there are thoughtful protocols in place that should impact -- while there could be some disruption, it is unlikely to be overly significant. that is my view at this point in time. haslinda: if there is a

disruption for any reason at all, is the world ready for it? bearing in mind that tsmc is a major player for the likes of nvidia as well as apple. >> absolutely right. tying into the geopolitical situation at the moment, taiwan is the silicon valley of asia. it is the center of chip production for asia alongside places like south korea and mainland china. so it highlights a risk given that world chip production is so reliant on the output from one single island. as i said, the risk art mitigated it appears this time given the epicenter of the earthquake is some geographical distance.

focusing on the state-of-the-art and all the earthquake procedures in there, but what if people can't get to work, what if the trains aren't working and the roads remained disrupted? there could be a knock on effect in the coming days, but it looks likely that the risk of a significant impact to the business is probably reasonably low at this point. i think it is a reasonable view to take, based on the information we know so far. haslinda: some top geopolitical stories were falling, president biden and xi jinping have spoken iphone in the first one-on-one communication since november. they discussed ai risks, the russia-ukraine war and efforts to fight drug trafficking. china made no mention of the tiktok issue. president biden says israel has

not done enough to protect civilians in gaza after airstrikes killed seven aid workers. among the debtor british, australian, polish, and canadian-american volunteers. the israeli prime minister admitted what he called an unintended strike at innocent people. his prompted several charities to suspend food deliveries to palestinians. north korean state media says the leader oversaw a test on tuesday of a missile that assess can deliver payload. it is capable of deploying a hypersonic light vehicle. the weapon is described as intermediate range, meaning it could hit u.s. military bases in the region. and now to the bridge collapsed

that close the port of baltimore , experts believe it is unlikely to trigger anyone. let's discuss this with you gene seroka at the port of los angeles, the busiest container port in north america. talk to us about the impact of that baltimore bridge collapse. haslinda: number one, our concern for the families and also the workers. is going to take some time to clean up that bridge in the debris, get the port back in operation. those workers in the business is surrounding the port will find challenging times ahead. thirdly, how do we keep that supply chain moving? ken other truck step up? this will be a federal response

by the united states. an all-out effort for cleanup and to build that bridge back up. >> so what are some of the lessons learned? it is -- is it about investing more in the u.s.? >> we took a top to bottom approach following this terrible incident. secondly building through the bipartisan infrastructure law and now coming up on the clean ports grants. we have to keep pushing money investment, both public and private sector to our infrastructure and supply chain. this is years and decades in the making. we have to continue this, is not just one. haslinda: haven't kept up with modern container vessels? what are your thoughts on that?

>> we have now accepted the 23,000 chip setter commonplace in asia and europe. moving that container off the ship and onto trucks and rail, great separations, density of those rail tracks and more warehousing across the country. haslinda: we know you've had a great start to the year. give assistance of what you saw in march and the kind of pace you are seeing in terms of growth, if it is sustainable going forward. >> last year an odd one for many reasons. inventories across the nation were so full, and cargo shift away from us due to projected labor negotiation with r. workers. that is complete now, and we have contract these of chair in front of us.

there is still room to grow. haslinda: what are you seeing in terms of demand? >> demand starts with the u.s. consumer. all the statistics were very strong. i am very encouraged. haslinda: countries of origin for the cargo you are seeing,? ? has there been a shift >> china was 57% of our business and dropped to 53%. i see them settling into the near 40's. more cargo being moved into mobley and by rail. vietnam is our next stop, to motive in spring -- springing.

>> we have to keep up with the infrastructure. not only the brick-and-mortar but the digital infrastructure. just yesterday the l.a. county city council passed an item that will allow us across the sidewalk. the bad guys are still out there. we got to stay ahead. haslinda: china's costco is building a big container port next buy. harriet are you assessing the impact of that, and how it might change? >> we do a lot of business on perishable commodities. i imagine this will boost trade capabilities in the area. i'm just wondering in terms of

geopolitics what's happening in the red sea, for instance. do you see that impacting your business in any way? >> absolutely. it reminds me of my days when we were dealing with these somali pirates. that is the lifeline link to europe. on the panama canal side, there is drought is dear -- all this added to the volume that is coming through los angeles. haslinda: talking about the earthquake in taiwan, the biggest and 25 years. might that impact trade? >> is bob just said on the interview, the population center in taipei appears to be say. we will be watching this very

closely. haslinda: oil prices surging close to $90 a barrel. how do you see that impact sentiment in the market and how might it impact the business model? >> number one, bunker prices will be higher. number two, decisions will be made based on those higher cost, where to buy. interface have not dropped yet. there was a lot of coverage on bloomberg this morning about that topic as well. inflation is stubbornly sticking around. although it dropped a little bit last month. haslinda: i'm sure you track it closely, when you see the fed cutting rates? >> it doesn't look like before june at this point in time. is the consistent flow going to remain the constant right now?

that appears to be the question right now. haslinda: still to come, india's credit growth is expected to moderate this year. we will discuss the implications, next. implications, next.

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haslinda: welcome back. it's get a check on markets, benchmarks under pressure in line with the rest of the region. the other benchmarks in negative territory, we continue to track currencies on the back of that strong dollar story. the rupee pretty resilient, flat versus the greenback. thanks reduce lending to the sector, one bank is predicting foreign cost for financers may climb as much is 30 basis points. injuries fifth biggest -- india's fifth biggest arranger for notes. the reason behind your predictions here for finances climb as much as 30 basis

points? >> good morning and thank you for having me on the show. what is happened in india, corporate bonds at an all-time low, typically it's usually 75-8 basis points. this year because of short supply in bullishness, people are taking positions ahead of the expected cuts, there has been a lot of buying. corporate bonds are at an all-time low.

they will be forced to come back on the capital markets more and more. capital markets are shallower compared to the public sector and corporate bonds. most people have allocated amounts i want to put into it. haslinda: you talk about the clampdown on shadow lenders, wondering how that might impact fundraising. where are they turning to for capital? >> there's not really a clampdown, they are getting money from banks and from capital markets. these are the main sources of funding for them. all these sources of funding

will continue, it's just that i think the money that was coming to them from world banks may slow down. it is already seeing slowdown. it will be coming back to the capital markets a lot more, they will try to do dollar bond issuances. they will's sell their existing books and that is how they would generate capital. haslinda: i want to talk about india's inclusion in the bond index. what impact might that have on domestic banks? >> it's a very big event for the country, it has been on the books for some time. there will be rallies around the government bonds.

it will have a positive impact, and there will be some benefit. it is always welcome to have a lower cost of capital. if the overall cost of funding, as more liquidity comes into the market, that will allow us to have a lot of funny and we will be able to lend at a lower cost to the market. it is a good sign to have a lower interest rate. from that perspective we think it is a very positive step for us. that is all, so very good for us.

so being stable is a very good factor for us. haslinda: you talk about expecting huge inflow. can you quantify that? what kind of influence are we looking at in the next 12-18 months? >> you can see the participants have started coming in. another 5 million -- we have typically had fbi flows coming in, but coming into the market is going to be really positive for attracted to us. following suit are corporate

bonds to some extent. we feel that -- thank you so much for that. let's give you the latest on the earthquake that hit taiwan. this is the worst earthquake in 25 years for taiwan, at least 56 people have been injured and 26 buildings have collapse. micron is evaluating operations. micron is the largest foreign investor in taiwan. its output accounts for about 60% of the company's overall dram capacity. umc also evacuating some staff,

some of the operations have been stalled as a preventative measure. lindy moorehead. keep it here with us. this is bloomberg. ♪ —last one everyone. i asked myself, why doesn't pilates exist in harlem? so i started my own studio. getting a brick—and—mortar in new york is not easy. chase ink has suppor o 1 t. when you start small you need some big help. and chase ink was that for me. earn up to 5% cash back on business essentials with the chase ink business cash card. make more of what's yours.

haslinda: stocks and bonds have been under a lot of pressure as traders recalibrate expectations of that fed rate cut, especially on the back of that better than

out of the u.s.. we know that intense treasury yields have been hitting the highest levels, topping the key level for the 10-year yield. asia yields also moving in tandem with the likes of australia, new zealand, higher yields putting further pressure on stocks. take a look at where we are, at this point in time. we are also keeping an eye on taiwan as well as a chinese markets on the back of that earthquake which we saw in taiwan. the earthquake measuring 7.4 magnitude hitting taiwan, at least 26 buildings have collapsed on the island. tsunami warnings now downgraded along the china and taiwan coast. some steps have been evacuated from reduction lines. the taiex currently down .4%.

in terms of the chinese currency, the yuan, that is one currency we are tracking right now. the pboc has kept its fixing very strong. in terms of futures, currently down by .4%. overall, we are keeping an eye on the fed and the data out of the u.s. that is it from bloomberg "markets: asia." daybreak middle east and africa is next. this is bloomberg.us. ♪

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