haidi: very good morning. we are counting down to asia's major market opens. shery: asian stocks set to follow wall street lower after jay powell refrain from pushing back against the surge in bond yields. oil jumped as opec surprised by

holding output study. investors watching signals on stimulus and cutting tech reliance on the u.s. the japanese government calls for tokyo to extend its virus state of emergency by two weeks trying to curb the election four months out on the delayed olympics. haidi: let's take a look at how markets are setting up this friday session. it was not that great on wall street. how are things in sydney? >> tech stocks continue to fall after the pressure we saw in asia. after pay losing more than 3%, but we are seeing gaming ground in the wake of the surprise decision by opec to maintain its output curb through april. wti now above 64 bucks a barrel

for the first time since october 2018. we are seeing the aussie dollar under pressure by about .2% and the aussie 10-year yield has eased it earlier climb, now up by about five basis points. looking at the board to see how we are faring elsewhere, we have the yen testing 108 for the first time since july, down against the u.s. dollar year to date. nikkei futures pointing slightly higher. shery: that's kicking off. it's the first day of china's national people's conference. the key work reports it to be delivered along with the much-anticipated economic blueprint for the next five

years and beyond. our china markets coanchor tom mackenzie joins us. what should we be expecting? will we get those numerical targets? tom: yes, we are very close to the great hall. you cannot see clearly because the smog is thick today. the delegates are in town. they have all been vaccinated. it is pared down, but nonetheless very significant and as you point out, we are looking or those targets. there has been a "will they or won't they" component around growth targets. this year, there is a debate as to if they are going to set a growth rate or not. most economists we speak to says -- i say it is unlikely because of those data distortions and continued uncertainty. you talked about stimulus. that is certainly front and

center of mine for investors. it's likely to be pared back, but there may be additional support for sme's that remain under pressure. we're looking, of course, at that five-your plan, so the roadmap between now and 2025 to try to pared on self-sufficiency, particularly around 5g and semiconductors. in terms of demand china has for chips, 50% of that has to be imported. they want to reduce that to 30% 2025. they are also very relying on chinese on imports of oil and gas. they want to reduce that and build out energy security. what policies are they going to unveil to get to that point and again build out that energy security? we are looking that, significant for renewables, significant for the broader energy space. we heard from an official saying there are areas of potential cooperation around climate change, around the global

economy -- around the global economy. we are looking for commentary on that. and hong kong saying there will be further moves by beijing to tighten its grip on that city. haidi: chinese lawmakers signaling they are getting ready to move on. tom: the state news agency saying a draft proposal will be put in front of the delegates. they are then likely to stamp that into law in the next few days. we don't know exactly what that proposal entails, but there have been suggestions from some pro-beijing lawmakers the last few days that it could involve a vetting procedure for candidates to make sure they are "loyal," that they are patriots, loyalty

beijing. further steps to stamp out opposition and democracy groups within hong kong according to opposition. this following the imposition of the national security law at the last people's conference in june last year. we have seen about a hundred opposition lawmakers and activists involved and alleged to have been contradicting or contravening that national security law. that grip has been tightened and will be tighten further it seems again according to state media. it is all about loyalty to beijing when it comes to hong kong. we are looking again for more details on that front. more important, the u.s. has imposed sanctions on some officials in hong kong. you would expect another reaction from washington if indeed this goes through. haidi: we will be hearing from ubs and ing.

let's get you the first word headlines at this hour. south korea's president has urged u.s. to give seoul a bigger role in urging kim jong-un to give up nuclear weapons. >> we don't have the luxury to procrastinate. the biden administration needs to set this as a prioritized agenda item. it needs to acknowledge the importance of south korea's stance. south korea has two types of roles, one is a do mediator -- one as a mediator and one as a directly involved party. >> the u.s. senate said to take up a relief bill backed by

president biden. a lengthy debate should end this weekend with approval. vice president harris cast her first tiebreak vote after all 50 senate republicans ejected the bill. opec and allies have shopped the market by keeping output unchanged. they agreed to hold production steady in april, and saudi arabia dismissing concerns about overheating the market and rising inflation. those are your first word headlines this hour. shery: still ahead, fed chair refrain from pushing back want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing!

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shery: federal reserve chair jay

powell is acknowledging that he is watching bond market moves. kathleen hays is here with more. what were the key points we heard from jay powell? kathleen: i think it's pretty clear, pretty definite that he is stressing patients, be patient, let's reach our goal because that is what we plan to do, and he's not so worried about easing bond investors' concerns. he did say that the run-up in bond yields has been notable, but he currently is not yet seeing disorderly conditions. he things that would be a key part perhaps of having to do more. let's listen. >> i would be concerned by disorderly conditions in markets or persistent tightening in financial conditions that threatens the achievement of our goals. i would be concerned if those things were to happen.

kathleen: furthermore and very importantly, he said financial conditions are still accommodative. in other words, this rapid bond yield is nothing that's going to choke off the economy. again, there's still plenty of juice out there for the economy to keep growing. he's really sticking to what i call the fed's mantra. they are going to be patient. they are a long way from their goal. they need to see substantial further progress. it's going to take time for an economic recovery. he keeps talking about unemployment rate closer to 10%. in other words, don't expect anything from the fed now. if you ask the fed, there's no put. markets will do what they are going to do. if there is financial instability at risk, then they will step in, but for now, jay powell signaling they are holding out. haidi: of course, today, we also

saw the u.s. dollar continuing higher. our next guest says it will resume its bear market later this year. thank you very much for joining us. the dollar seems to be a little bit more robust than we initially thought, especially with a favorable rate environment. we also have that are u.s. eco-numbers out. when can we expect to resume its decline, and what happens if it does not? >> first of all, the dollar was oversold, and the dollar tends to also be bigger when the u.s. economy is in better shape than the rest of the world. outside of north asia, the u.s. economy is a lot more advanced than the rest of the world with

respect to the vaccinations and, you know, the prospect for reopening. but there's still some structural issues with the dollar, the trade deficit. the fact that the real yield advantage has diminished, and it's really expensive. so i don't see a clear path for this continuing, say, beyond the first half of the year. shery: if we did get that weaker u.s. dollar, that is helping emerging markets. where are you looking for opportunities where we also have emerging markets benefiting from higher commodity prices? >> the first thing is the mantra, and it is something we wrote about in the third quarter last year, is whatever did well

last year is likely vulnerable this year. china is a little more nuanced of a story, right? in the previous segment, we talked about rising bond yields. the markets and sectors that are most vulnerable to that are obviously long-duration assets, and in the equity market, we are talking about technology, which then leads you to -- and it's a tailwind for financials because of, you know, the yield curve, so where does that leave you? it takes you certainly away from the u.s., and it kind of puts you squarely in less technology-driven markets.

japan, for example, or europe. in these emerging markets, in particular, we think russia is interesting. poland is interesting. they are both -- and then, within china, we like china machinery. like most value sectors, it has struggled. >> in your view, are we in the middle of a commodities super cycle, or is the demand side going to peter out? >> people point to oil and metal, and i think depending on which commodity you're talking about, you get a different answer. again, in the previous segment, we talked about opec, which has been remarkably disciplined.

metals, on the other hand, is a bit of a different story because that has been bid by their longer-term move towards renewables and electric vehicles, and so we think that that is more subject to being along the lines of a super cycle than oil. i think oil is simply a rebalancing because of under production and, you know, opec. haidi: great to have you with us . you can get a roundup of the stories you need to get your day going in the friday edition of daybreak.

bloomberg subscribers can go to dayb on your terminal, and is also available on the bloomberg anywhere app. you can tweak your settings so you just get news on the industries and assets

haidi: cathie wood's exchange traded fund has erased all its gains of the year after closing 5% lower in new york. it has fallen 24% since hitting an all-time high in february. over the past year, the $23 billion fund is still among the best equity etf's. bloomberg named would the best stock seeker of 2020. boeing is set to be seeking a new revolving credit facility from a group of creditors led by citibank.

the playmaker has leaned heavily on banks for financing over the past year amid the global slowdown in travel and now flaws in the -- the grounding of the 737 max and now flaws in the 787 dreamliner. suez is set to be in advanced talks to sell its australian business for evaluation of $2.4 million. the proceeds what help it as it seeks to fend off a hostile takeover. italy has blocked a shipment of astrazeneca vaccines, blame -- blaming scarcity in europe. it's hard to argue when you take

a look at the case numbers that we see out of australia. is this a situation when vaccine diplomacy is at play? >> rather than vaccine diplomacy, i would say probably the opposite -- vaccine nationalism or vaccine protectionism is how the who has styled it. italy's foreign ministry cited scarcity in europe and italy and taking into account astrazeneca's supply delays to the bloc. if you remember, the european commission institute back in january allowed countries to curb exports of vaccines as drugmakers failed to meet delivery targets. this was the first country to do this so far. haidi: what is the impact likely

to be honest really -- likely to be on australia? >> they are downplaying the impact. it has already begun its vaccine rollout, mostly with the pfizer vaccine so far, and it is scheduled to be rolling out the first of the astrazeneca shots this week. in fact, australia's health minister's office said this morning that those first shipments from overseas of the astrazeneca vaccine have already arrived, so this delay frankly will not impact those distribution plans. it is also important to remember the roughly 53 million astrazeneca shots that we have ordered here. more than 50 million of them are going to be manufactured locally . the government says that that domestic production is going to kick off pretty soon with one million shots per week, and that

is very much on track. haidi: are we likely to see anymore developments or actions like this? >> there are fears this could be the start of this vaccine nationalism. so far, they have administered doses equivalent to just over 8% of its population. that's way behind the 32% we see in the u.k., the 24% that we see in the u.s., and the european union's target is to inoculate at least 70% of its population by the end of the summer. if we could get governments feeling they are on track, we could see them take similar action. the who has said the eu is engaging in damaging protectionism. one of the impact -- while the impact to australia may not be

that big because of our low level of community transmission, and we are pretty much on top of the virus, you can only imagine countries with soaring inion rates who are struggling to get supplies. we are watching this development. shery: let's now turn to the virus situation in japan. the government recommending an extension of the state of emergency in the tokyo region. the measures were virtually set to expire on sunday. our reporter in tokyo joins us now. was this sort of inevitable given that we do have the tokyo olympics coming up in the summer? isabel: the prime minister has been quite reluctant to extend measures because of the impact on a lot of businesses like bars and restaurants, but what happened was tokyo's governor and the governors of the prefectures around tokyo requested that this extension be brought in, and i think he found

it quite hard to refuse. the number of daily cases in tokyo has not fallen as fast as was hoped. we are now just under 300 a day in tokyo compared with 2000 in early january, it sounds good, but not as good as was hoped. there's still strain on the medical center in some areas around tokyo, and the third possibility, as you mentioned, is we are now just weeks away from the start of the torch relay that begins the whole series of events leading up to the olympics in july, and with the government hoping to keep the games on track, having an increase in cases at this point is something to be avoided at all costs. haidi: what would potentially this mean in terms of daily life in tokyo and of course, economic repercussions? >> the main policy has been to make bars and restaurants

close at 8:00 p.m. residents have also been encouraged to avoid going out and work from home if they can. these suggestions have actually been increasingly ignored. commuter trains are really crowding again. consequently, this will only have a minor effect on the capital as a whole, but vaccination is proceeding so slowly in japan at the moment, keeping this state of emergency in place is about the only tool the government has to prevent another surge. haidi: our apologies to reporter isabel reynolds there in tokyo. stocks falling in the u.s. overnight. we have not really seen a correlation of a weaker yen translating to higher equities trading, but we do see the japanese yen be and really

caught in the crosswind of u.s. reflation trade, jumping about one and 1/8 for the first time since july. we are seeing that aping gap in yields. more to come. this is bloomberg. ♪

>> this is "daybreak: asia." i'm vonnie quinn with first word headlines. jerome powell said he would be concerned by markets but concrete action to rein in rising long-term interest rates. more to do policy tightening is on the horizon. inflation expectations reach new session has. -- highs. >> i would be concerned by disorderly conditions and markets or tightening in financial conditions that threaten the achievement of our goals. i would not be concerned -- i

would be conservative those things were to happen. vonnie: u.s. and the u.k. are considering measures over russia over the use of weapons. two countries are weighing options ranging from sanctions against oligarchs from the extreme theft. the biden administration announced its sanctions against russia tuesday. u.s. blacklisting four more myanmar, imposing export controls in response to a military coup and violence against protesters. it applies to myanmar's minister of defense and home affairs. two groups the agency says which is responsible for the cute. security forces killed 38 protesters on wednesday. new zealand has a synonymy warning for some coastal areas after a powerful magnitude eight earthquake in the south pacific ocean. it was the third reported near new zealand within a few hours.

people in coastal areas have been advised to move to nearest high ground or as far inland as possible. the evacuation advice overrides the covid-19 requirements. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: we could see japan and south korea following wall street lower when they open in half an hour. let's turn to sophie for what to watch. sophie: that tone being set by stocks. off by .9%. tech and materials leading the drop borrowing -- following tech names leading that decline. while cyclicals have been favored, the nasdaq under pressure after the benchmark, narrowly missed entering correction territory. the aussie dollar holding losses overnight. down .2%. this as it trades near a one-week low.

let's switch the board to focus on crude. . oil stocks climbing in citi as wti tops $54 a barrel. we do have the e opec-plus today a saying they will keep supplies in check. they expect that oil prices will rise above $70 ahead of the next opec-plus meeting. they are warning the alliance may fray, given demand is improving for oil. flipping the page to see what is going on with currencies. checking on the end which is testing the 10. eight level. . reaching back for the first time since july amid widening yield differentials as japan's economic recovery remains sluggish. with the dollar trading near a three-month high, gold ahead, flipped below 1700. they say watch to -- watch for it to fall. holding pretty steady this morning after we saw yields rebound to 1.6 on the tenure. goldman raising its year end

forecast for a benchmark u.s. yield down to 150. with data providing a left after consolidation. haidi: senate democrats have agreed to tweaks to the bill as the chamber prepares to vote on joe biden's legislation. let's get the latest from our reporter, emily wilkins. how much does the stimulus package get tweaked by the time that we see the passage of it being finally passed and approved? emily: we have seen a couple more additional tweaks today. some of those are more explicit directions to the allocation of the 350 billion dollars for state and local funding. . we also see things like $5 million for emergency food and shelter assistance. $8.5 billion for rural hospitals. $200 million for things like amtrak. these are all coming as some of

the proposals that democrats wanted in the bill, like transportation, has -- is now out because they didn't need the senate rules. also remember, the individual $1400 checks got narrowed. fewer people will be receiving them now. shery: even before the deal is done, we are seeing president biden discussing with lawmakers is longer-term infrastructure package. what do we know about that? emily: president biden came out with a bipartisan group of lawmakers, as well as transportation secretary pete buttigieg. this is the next big thing the white house is going to begin to push. legislation that they are hoping not only contains things related to roads and bridges, but also on larger issues including climate change things like building electric vehicle charging stations, or developing cleaner cars. they are trying to get democrats and republicans to agree on

language. that might be difficult depending how much democrats want to push forward with climate change initiatives. at this point, you can see that president biden is once again trying to bring republicans on board with the process, similar to how he did at the beginning of this current stimulus package. shery: bloomberg government reporter emily wilkins joining us from washington. let's focus on one of those hardest hit sectors that really need the stimulus package, airlines. bloomberg intelligence is expecting u.s. airlines to tap up to $14 billion from the relief bill, giving them enough liquidity throughout the year. george ferguson is on the line. how badly do these carriers need this extra stimulus? george: actually, i think not a lot. thank you for having me on. right now, u.s. airlines have a lot of liquidity. they have issued a lot of debt

during the year, backed by airplanes and gates and routes. so for some of the airlines that have the least amount of liquidity like american and jetblue, we see them, once the stimulus package comes through, having five quarters of liquidity. others have 10 to 12. actually, the last time the airlines got money out of a stimulus package, it came late and it seems like there is a lot of polling to get it done. it seems to come early and seems to push them well into 2022 before they might have any needs. haidi: what do we see as being the effect on the market then? george: i mean, what we see from the markets is that u.s. airlines, their debt and their equities, there has been a lot of interest in them. look, investors i think are looking, they see potentially an end to the pandemic as vaccines

are being distributed in the major economies around the world. the airlines have certainly been hit very hard by the pandemic. but i think they can see a way to demand returning to 70% or 80% of its upper levels, of its 2019 levels. i think they see that and therefore, they are very interested in that sector because of the sense of recovery. shery: exactly. we are seeing some states starting to open up. so what are we seeing in terms of who is flying where, where are we seeing capacity additions? george: sure. so, what we see first is typically, the domestic markets, the big domestic markets will recover. china is trying to become at 2019 capacity. u.s. carriers at about 60. percent and rising as states open, it gives these airlines more places to fly to.

they will fly people out of places like new york or new jersey that may be more closed down, into places like texas and florida. we see those markets, the domestic markets where you don't have to cross a border, as recovering sooner. it will take a while before the international markets improved dramatically. there is still a lot of restrictions when you cross borders, and there is still discussions about how we will put in place ways to have evidence of having back -- having a vaccine or a covid test. there are still challenges between moving between const -- continence. -- continents. shery: bloomberg senior aerospace analyst there, george ferguson. let's turn to south korea. top contender to succeed president moon jae-in urging joe biden to give seoul a bigger role to giving up their nuclear

weapons. the leader also discussed ways to address south korea's incoming equality. >> on top of the already existing policies, we have to support low income classes. we conducted four rounds of emergency relief programs, and that alleviated a lot of the income drop for lower income classes. i think this shows how that kind of welfare policy is necessary in the future. >> you just talked about your cash handout scheme. will there be more cash hands -- handouts this year? >> as long as there are difficulties that the people are facing, i have no change in stands in thinking that fiscal policy should play a role in providing support. i feel giving the support that is different in size to the difficulties that 11 through is not there. >> what exactly is your profit sharing scheme, and do you think

this will solve the inequality problems in south korea? >> i would like to stress it is not a mandatory scheme. it is about giving incentives to those corporate to take responsibilities to tackle social problems. i'm not arguing for an equal distribution of wealth, but redistribution is needed for sustainable growth. > are you going to run for the presidency? >> i will not avoid responsibility. there would be an appropriate time for an official announcement. >> how do you plan to facilitate the denuclearization of north korea? >> we don't have the luxury to burn cast any -- to procrastinate. the biden administration needs to have -- needs to acknowledge the importance of the south korea stance. south korea has two roles. one is a mediator, and one as a directly involved party.

. the trump administration has separated the roles of washington and seoul where the u.s., wouldn't it be more effective to not distinguish on those roles? >> do you have any message to president biden? >> i hope the biden administration refers to the clinton administration on how to approach the north korea problem. obama's administration may have been due to the situation in the korean situation. that policy gave north korea the ability to strengthen its arsenal. i would like to ask the biden administration to acknowledge a wider role for south korea to play in that matter. >> that was the leader of south korea's ruling democratic party speaking with bloomberg reporter. . we are counting down to the start of trading. we are seeing weakness broadly across asian markets. this after the s&p 500 toppled overnight. markets disappointed by a lack

of commitment from fed chair powell and those remarks we heard. futures down 1.5%. this after the benchmark to drop in the previous session, really led by the selloff we saw in heavyweight chipmakers and tech stocks. we saw that down by 2%. we do have expectations of nintendo planning to switch its switch model with a bigger samsung. potentially a bounce back for that index heavyweight. samsung there. the market open is just about 16 minutes away. we have lots more to come on "daybreak: asia." this is bloomberg. ♪

haidi: today on bloomberg equality, we are focusing on women in capital space. ruby lu is among a group of female investors who have risen to the forefront of china's pc world. after being one of the earliest investors in the hit video app, she started her own firm in 2019. to groom the country's next generation of tech darlings. she spoke about her experiences as a female executive in board rooms throughout her career. >> i can -- i work with them in the markets. when it comes to when people

talk about female investors, i think competency levels, we have to show people that we are competent at the job. we are very good at our job. like a majority of my board, i am the only female board member. so my fellow board members have to -- hopefully through me, they feel comfortable working with women, because they are competent, and because they are good. and once they trust your judgment, then they feel very comfortable working with you. and then, secondly, i actually felt that in terms of diversity, policy matters. the reason hong kong stock exchange, 30% female board members were women, i think that is a very good policy and very welcome. california-based companies are requiring that.

in the eu, that was a long-term policy. you have to give women the chance to shine at their job. and lastly, i often tell women that pay it forward is important. >> you have benefited from the type of mentorship you have received sitting on various boards, for example. you have a pay it forward philosophy. what would be the advice he would give to aspiring females? >> get your competence level there. so by working with great founders, think of mentors in the industry that will lend you not only resources, but from time to time, you can ask for advice. one of my mentors actually dragged me from goldman into venture capital business.

he actually -- it took him nine months to persuade me that this is the right kind of career for me. so, i think finding the right mentors, people who believe in you is very important. and lastly, i think really, really go for it. don't worry so much. and don't struggle so much. just have fun and. . go for it -- just have fun and go for it. that is part of the attitude one should adopt early on as a woman. only by doing it, you will figure out if you can or cannot do it. >> having women on boards, identifying, but -- competent women, those are key ingredients to ensuring there is a spotlight on the achievements of female vc

participants. what about the experience of female founders? how is not evolving in china and how is that being reflected in the vc space when it comes to deals or founders you are working with? ruby: there are more and more female founders. in the past, often, you would find -- in china, one of the companies that was early in my career -- a chairman, sort of an early stage female founder. she is now running it as a ceo. she cofounded the company with her husband. there are many companies who have actually cofounded in the sector.

for keep -- for female cofounders --i actually see more and more of them. first of all, you need to be willing to take risks. i think in many ways, taking calculated risks to be founder and leading a company, and to sign up for 10 years of torturous life. i think very few people would want to do that. so with women, in china, there are many great role models. one of the biggest companies, there is a female ceo, female founder. once they have more and more role models other, people see that there is a path, at the end of the rainbow there is a pot of gold. there is going to be reward. like, more and more women will sign up, and hopefully because we have so many female ceos,

female vcs, they will be able to tap into us. shery: ruby lou speaking to sophie kamaruddin. if you want to hear more from the day's's big newsmakers, tune into bloomberg radio. . get in-depth analysis from the daybreak team, broadcasting live from our studio in hong kong. listen via the app, or bloombergradio.com. plenty more ahead. stay with us. ♪

shery: here is a check of the latest business flash headlines. china's top technology dealmaker is wrapping up its push into investment banking. china renaissance has made its name advising and investing in startups, but now the beijing-based group is seeking top positions in blockbuster listings alongside wall street bank. it is working on 13 ipo deals globally, and one -- and wants to expand its team of 30 bankers. sources say that baidu has secured approval for a second listing in hong kong and could launch its share sale as soon as next week. in january, bloomberg reported the new offering could raise as much as $3.5 billion. the nasdaq listed search engine will join a wave of chinese firms flocking to the city with about $17 billion raised by secondary offerings in hong kong last year. boeing is said to be seeking a

new $4 billion revolving credit facility from a group of lenders led by citibank. the plane maker has leaned heavily on banks for financing over the past year i made global slowdown in travel. the grounding of the 737 max, and now flaws in the 787 dreamliner. sources say the plane maker has the option to increase the size of the two-year facility to $6 billion. suez is in talks to sell its business in a deal that could value the firm treatment assets to $2.4 billion. the proceeds would help suez as it seeks to fend off a hostile takeover by rival -- by its rival. the deal is uncertain. broadcom shares fell and after our trade as the company's main chip division reported revenues that missed estimates. under wall street's iphone fuel expectations. they key chip supplier expects $6.5 billion in revenue for the

current quarter which largely is in line with estimates. the ceo sees revenue gains to persist throughout 2020 one. -- 2021. haidi: time to take a look at the stocks we are watching going to into the major agent -- major asia open. what are you seeing? sophie: we are watching asian chipmakers have -- after broadcom disappointing results. . keeping an eye on this. nikkei news reports that new stores will expand its food operating -- operations. both have revise their fourth-quarter operating profits following an easy recall on defective batteries. also watching reaction to plans to build a second electric vehicle battery plant in the united states with general motors. nissan planning to expand its ev offerings in the u.s. the company investigates the

ceos dinner with government officials. we are keeping an eye on japanese banks where they agree to banking lot reforms. let's check on how markets are faring in the activities this morning. ozzie shares falling 1% this morning, with tech, the biggest drag so far. nasdaq under pressure. this after the benchmark narrowly missed entering correction territory. kiwi stocks under pressure. nikkei futures pointing to the downside. treasury futures holding steady after we saw the u.s. 10 year yield rebound to 1.6% overnight. goldman revising their forecast for the u.s. 10 year rate by the end of the year. shery: coming up, more analysis on what to expect on day one of the national people's congress. they join us in the next hour. the market opens in tokyo and seoul are next. this is bloomberg. ♪ ♪

shery: welcome to "daybreak: asia." from bloomberg world headquarters in new york, i'm shery ahn. haidi: i'm haidi stroud-watts in sydney. . asia's major markets have opened for trade. . our top stories this hour, asian stocks center follow wall street lower after jay powell refrains from pushing back against the tumble in bond prices. guilds surging past 1.5%. oils hits its high in nearly two years after opec-plus surprises

traders with its decision to keep output unchanged. saudi arabia says it is in no hurry to bring back supply. china prepares for its biggest political meeting of the year, the national people's congress will set out economic targets for the coming 12 months and into the next decade. >> time tom mackenzie in beijing. investors will be watching the work report in the next hour. for signals on stimulus. and self-reliance as china plots its path to becoming the world's biggest economy. haidi: for that, let's get market -- before that, let's get market reaction. sophie: seeing a risk off town after the drops we saw on that. this as we digest the japanese government recommending the tokyo emergency be extended for another two weeks. against this backdrop of sluggishness for japan, we have

seen for and selling of japanese stocks on the rise. testing the 108 levels, breaching that for the first time since july. we could see dollar-yen upside moves tested ahead of the u.s. jobs report due later. it could trade in that 15 basis point level as we see on the 10 year. morgan stanley doesn't expect that we'll have the bod intervene with bond buying. we are seeing the kospi lose 1.3%, looking to test the 3000 level. chipmakers weighing the most on the kospi. samsung shares falling to a december 20 low. the korean won, back above 1130 against the greenback. rbc capital seeing the won and repeat as the most vulnerable to higher u.s. yields. let's switch the board to check on the -- on how things are going in australia. ozzie share market under pressure, with tech shares. the biggest drag.

energy stocks are gaining ground in sydney as wti is above $64 a barrel, following the opec-plus decision to maintain its supply through april. bond markets in focus after the dovish remarks from fed chair jay powell. the u.s. 10 year yield holding at the 156 level after rebounding to 160. which had seen goldman revises forecast by year-end. the offshore yuan on, a three-day drop. back below 649 level. looking to test the 650 handle, given the increase we have seen. this ahead of china's shares. shery: that time of the year again. china's national people's congress getting underway. the premier set to deliver the key work report. he will also unveil the 2021 fiscal budget and the much-anticipated economic blueprints for the next five years and beyond. our china market coanchor tom mackenzie is in beijing near the great hall of the people.

we didn't get that growth target last year. what sort of economic targets could we expect this year? tom: there is a lot of debate as to whether or not they will set a growth target for this year after dropping it last year because of the impacts of the virus on the economy. longer-term, and this is more significant, will they signal they will drop it completely? that is something to watch. this is all about to what extent policymakers will be prepared to pull back and taper some of the support they have put in place last year to bolster the economy. now that it is on a surer footing. we are looking for that. we expect infrastructure spending and the stimulus that is being targeted at the local government level to be pulled back. there is question marks over where there will be more support for sme's. the deficit target, it was set at 3.6% last year. . likely to be reduced this year. because there is concern about

leverage being built up in the system. longer-term, we are talking about cyclical issues. but longer-term, the structural questions that china faces about developing its consumer economy. and again, about ensuring its technology supply chains are embedded in china and less reliant on those imports from abroad. haidi:haidi: what do we expect to see in the five-year plan, particularly pertaining to china? tom: for china energy security, it is increasingly important. it relies on imports of oil and gas significantly. and it wants to reduce that reliance. we are expecting to get details on aligning with that longer-term goal. china said itself -- sent itself a renewable target. it has not up until this point really detailed what that means. anything on that will be more significant, particularly if you

are an investor in the broader energy space. there may be additional steps to reduce and pull back some of the industries, polluting industries like steel. we have some suggestions that that may be part of the focus. certainly today, a very polluted day in beijing. a reminder of the challenges that china faces. also in the five-year plan, technology. i touched on this. but building out self-sufficiency. particularly when it comes to semiconductors and 5g. shery: what about hong kong? what can we expect about that city? tom: there has been a lot of buildup to this, and a lot of expectation that beijing will take further steps to tighten its grip on the city. and indeed commission while, the state news agency said last night that is exactly what is good to happen. they proposed a draft measure, and they will be assessing and and they are likely to give it their stamp of approval. we don't know what it will entail but there is a suggestion

they might put in place in hong kong a vetting procedure to vet potential candidates for seats within that city to ensure they are loyal to beijing. will they pass that test that officials and pro-beijing supporters have been talking about. again, the pro-democrats and the critics of beijing and the officials of hong kong would say, this is further evidence of the eroding of the small freedom, the limited freedoms that exist in hong kong. there could be more backlash from the u.s. if they go ahead with this. we know the u.s. has put sanctions following the imposition of the national security law in june of last year. haidi: our coanchor tom mackenzie in beijing. let's bring our head of asian market strategy and research at national australia bank. the mpc and the policy settings, not just for the next 12 months but the next five-year plan, is front and center. what is key to you in terms of what you are watching today? christy: good morning and thank

you for having me. definitely. first things first, the session will be different from previous sessions. it will be a huge opportunity for the leaders to actually showcase and send a message, basically this is where [indiscernible] there will be a number of challenges to be addressed as well. and what we are looking out for is what are the policy measures, what are the policy directions because of covid-19? and how china will be dealing with a tensions with the u.s. it will not be explicit. what we are seeing is definitely a mix of balances whereby perhaps there will be no target but long-term growth has been talked about.

it is still needed for president xi and the party to achieve into 2025. at the same time, the normalization whereby it is still a case of where china does not need to spend as much stimulus as we see in other developed markets to shore up growth going forward. that will have repercussions on how the markets react. haidi: taking a look at the implications for investing in china. this is taking a look at the lines we have seen in the csi 300. a correction is looming for chinese stocks, with the index close to falling 10% from a recent peak. if you look -- if you are looking at internet met stocks, down 20 part -- internet stocks, they are down 20%, which suggests they are about to enter into a bear market. is there a recovery possibility

depending on what we hear from policymakers over the coming days? christy: i think that has been a case where some of the poly may -- the policymakers are taking it into consideration. some of the tightening our resurfacing. a large part of this trigger was because of the recent fall in the stock market in china. i think going forward, the pboc will aim to strike a balance. on the one hand, it will have to leverage the risk. and you will continue to see the leverage. on the other hand, it needs to continue to provide [indiscernible] in the recovery to continue into 2021 and beyond. at this point, we are looking at

policy normalization happening gradually and slowly. they are not looking to cut rates further. i know they have talked about cuts coming soon. but i don't think -- i think they will proceed in a balanced manner. at the same time, there will be no tightening. shery: we will be back with you quote -- shortly. we will be discussing that a little bit more. plenty more to come on "daybreak: asia." this is bloomberg. ♪ (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you maintain comfortable, correct form. that means better results in less time. and there are over 20 exercises to choose from.

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>> you are watching "daybreak: asia." i'm vonnie quinn with first word headlines. the japanese government is recommending extending the state of emergency for the tokyo region by two weeks.

. the restrictions were set to expire sunday. japan is trying to maintain its trend as it looks to host its olympics in -- hose the limbic sin four months. bars and restaurants must close 8:00 p.m. in tokyo. italy has blocked the shipment of astrazeneca's coronavirus vaccine to australia. . it blames scarcity, because australia is considered a non-vulnerable country. they did not object to the decision. in january, legislation allowing curbs on exports of coronavirus vaccine, as drugmakers failed to meet delivery targets within the bloc. it have contender to south korea's president, has urged the u.s. to give seoul a bigger role in pushing kim jong-un to give up nuclear weapons. my credit party leader -- a democratic party leader has emerged in opinion polls as the leading candidate to represent the progressive law in the election next year. >> we don't have the luxury to

procrastinate. the biden administration needs to set this as a prioritized agenda item and needs to acknowledge the importance of south korea's stance. south korea has two types of roles. one is 8 -- one as a mediator and one as a directly involved party. vonnie: the u.s. is blacklisting four more entities and imposing new export controls in response to the military coup and escalating violence against people protesters. the congress department blacklist advised the ministry of defense and home affairs. two groups that they say is responsible for the coup. . the united nations said it killed 38 protesters wednesday. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: let's head back to the national people's congress and discuss what this means for the equity markets. for broader economic outlook for

china, christy tan's head of asia market strategy and research. she joins us again. thank you so much for hanging around. let's discuss what the priorities set at the mpc could mean for investors. because we do have a renewed focus on renewables, energy goals, financial reforms. how do you invest in these themes? christy: i think a large part of it is in the model. basically it involves continuing to advise for investors, foreign investors, foreign companies to continue to invest in china. especially in areas which is the key focus. at the same time, it means that china will increase in terms of its self-sufficiency, especially to technology and innovation.

i think we are looking at that. we are looking at more details of that coming up. -- coming out. shery: we are also expecting more details when it comes to hong kong. dozens of opposition figures have been back into custody ahead of their trials on national security charges. . those cases take place at the end of may, meaning they face another three months in jail. our asia government senior reporter ian marlowe is on the line from the city. what is the latest? dn: we had a -- ian: we had a dramatic hearing lasting all week. some of the most prominent activists in the city shuttled back and forth from a detention center to the court over and over again over the course of the whole week. late last make -- last night, we find out over a dozen of them would be free but the prosecutors pushed to have that

appealed and everyone was remanded back into custody. we have got basically all of the prominent pro-democracy voices in the city kind of locked away for the big meeting that is just beginning. i think a lot of critics have said this is something that may the prosecutors or government was happy to have happen in the end. it is basically as beijing rolls out separate electoral changes to hong kong, that everyone is anticipating from this big meeting in beijing. haidi: everything we have seen over the past few months, hong kong is on the economic freedom list. ian: yeah, exactly. this is something that hong kong officials and chinese officials more generally like to tote when it comes to, in particular, if

there is any political crackdown in hong kong, they say look, it is the freest economy in the world, it is always ranked like that. last year it got knocked off by singapore and hong kong officials promised hong kong would be back on top. but the american think tank that runs that list basically said, you guys are not in charge anymore. it is beijing. and chinese officials who are in charge. you guys don't really have a say in terms of that anymore and you will have to run everything by beijing, and beijing can implement whatever policies they want. now hong kong is lumped in with china and has fallen down the list quite dramatically. ha our senior reporter ian marlowe with the latest on hong kong. oil prices jumping up to opec-plus, surprising the market by keeping a tight lid on output. we will have all of the details next. this is bloomberg. ♪ ♪

shery: here is a check of the latest business flash headlines. boeing is set to be seeking a new for billion-dollar revolving credit facility from a group of lenders led by citibank. . the plane maker has leaned heavily on banks for financing over the past year amid the slowdown in travel, the grounding of the 737 max, and now flaws on the 787 dreamliner. the plane maker has the option to increase the size of the two-year facility to $6 billion. suez is in talks to clean waste in a deal that could value the french firm's aussie waste treatment asked -- assets at $2.4 billion. the proceeds would help it to fend off a hostile takeover by a rival. a deal is uncertain. haidi: the latest opec-plus meeting caused oil futures in

new york and london to rocket higher. really surprising traders to keep oil output unchanged, at least for now. su keenan has the latest. it looks like oils got exactly what they needed. su: one analyst was extremely shrewd and recognizing that they need to feed the bowl and the bulls were off to the races. it jumped to the highest since april 2009. we are seeing it extend gains in asia trading, as it aims for 65. brent crude prices, also surged as much as 5.7%, as did volume. brent crude, up 30% year to date. that may explain why opec-plus maintained a conscious -- a cautious stance or they want to protect the price recovery. if you look at the big picture, it reminds us that prices fell below zero almost a year ago as the pandemic began. the saudi's recognized they really need to protect the price

recovery. they pushed a hold output study. no increase. slight exception for russia and kazakhstan. they agreed to voluntarily extend their own additional and voluntary one million barrel a day reduction. the concern that is being raised now as they keep a supply tight, as demand does start to recover, it could see oil prices heat up. there is a concern that this could add to the inflationary pressures that a lot of economists are starting to worry about. . right now, a lot of oil builds embracing the decision. . the opec-plus group meets once again april 1. shery: su keenan there in new york. let's turn to broadcom, shares fell after the company's main chip unit reported revenue that missed wall street estimates. let's go to bloomberg intelligence senior analyst for more on this. what was the problem here? >> i think it was actually a decent quarter.

i think the big issue around company commentary revolves around the fact that they have seen orders so strong, bookings at 90% of the year is already done, one q -- come q1 that people are nervous but it is not real, that we will have a substantial demand for the second half of the year. they are going to have inventory piled up with their customers and demand will be much weaker than potentially what customers are indicating right now. this is a situation where it is so strong, it is tood to be true situation. haidi: what about the ongoing outlook then? >> the outlook, we are going into a seasonally weaker period. given that backdrop, the wireless segment which is a major supplier for the iphone, was down q1, q2 which was expected. there are other businesses that

are still deep. the question is, how do you balance the strong outlook in the first half with the potentially weaker outlook that is implied by the customers in the second half? so it is a delicate balance. and the disbelief by investors i think is what is shaking broadcom sentiment right now. shery: bloomberg intelligence senior analyst there. let's take a look at what is happening across japan. we are seeing the nikkei losing more than 1%. the japanese yen, we were seeing the weakness. still, at the 100 -- very near the ¥188 level against the u.s. dollar. . it touched the 108 level for the first time since july. we did get some comments from boj governor speaking in parliament, saying japan's economy is picking up as a trend.

he does see risks are on the downside for the economy. and also for prices. he said he expects japan's economic improvement to be only moderate. we are keeping an eye on the bond markets. we are seeing japanese jgb yields on the rise, following what happened on wall street as we saw that treasury selloff as well. this as wall street saw another hard day with the s&p 500 very, very close to erasing its 2021 gains. haidi: yeah, in fact, we see s&p 500 futures falling as much as .5% in the early asia session. doesn't look like there is much let up. breaking news from new zealand. we have the tsunami alert being issued with thousands of people being ordered to evacuate coastal areas in the north of the north island. we are hearing new zealand has downgraded the tsunami threat, and all people who have evacuated the areas can now return. they will -- there were concerns

after a powerful earthquake struck near the islands in the south pacific ocean. lots more to come on "daybreak: asia." this is bloomberg. ♪ ♪

>> a withdrawing of fiscal policy by 2010. how low -- how much moderation would be seen the fiscal deficits? >> believe it will focus on growing both domestically as well as through exports. >> infrastructure spending, stimulus, all these things are the old ways of crating growth in china. >> a lot of planning. local governments will be

needing targets. >> china does not have through the indicator to saturday -- if they do happen to put out growth gdp target it may be lower than analysts are expecting. >> this is because of course would actually bring a low profile. >> some of our earlier guests on what they are watching out for. some of those policy announcements we wait -- we may get. wong tao joins us from long -- from hong kong. always great having you with us. we have had this focus on, are we going to get that growth target? are we not? we heard that this perhaps could be over 7% for 2021. what are your expectations?

>> my expectation is that they will either not set a specific target or they said something with a lot of upside. for example, they can set at least 6%, or above 6%. most analysts expect growth to be above 8%, 8% to 9%, or some even have it above 9%. they will not want to, given all these uncertainties remaining about the pandemic and global growth, i think they will not want to set a target that could send the wrong signal. fa said 8% or 9%, the market may expect more policy or continuous policy support, which they will not give, or if they said just around 6% as a specific target, there could be a sunderstanding that they are going to tighten too much. >> that led to huge amounts of debt in the chinese economy.

what are we expecting in terms of the budget deficit? and also off-balance-sheet borrowing? >> last year, china launched a stimulus just like everywhere else. we estimate that that has -- that as a share of gdp is gone up 23%. they have signaled to de-risk and deleverage. we are looking for headline budget deficit to decline about 3% or lower, from 3.7% last year. a lot of these off budget, for example the local special government bond will also decline to about 3 trillion from about 3.75 last year. no special treasury bond anymore. it was one trillion last year. the broad-based argument will probably shrink by three percentage points of gdp.

overall, as more fiscal tightening than the headline number would show. >> i also want to talk about raising the living standards. that is always the perennial focus for beijing every year. take a look at discharge. what you think of the size of the chinese economy, we talk a lot of it overtaking the u.s., this chart showing gdp per capita is just a fraction still of developed nations. it is a big country, it is a big economy, not mitt -- not rich by this measure. in terms of the 2035 goal for beijing, we expect more details around that and how they aim to raise gdp per capita? >> right. i think we will see the longer-term objectives being discussed. earlier the government said that china aims to achieve a

mid-level advanced country level of development by 2035. i would say think of a country like portugal and so on. $25,000 per capita. right now china just above $10,000 per capita. these are nominal terms. to get there, china will need to have pretty solid growth in the next decade or more, so nominal growth of say around 5% or slightly below could help achieve that. that will require continued domestic reform and expanding domestic demand. the opening of structural measures they have talked about to sustain growth, even real growth, if it continues to slow, our expectations of real long-term growth slowing to 4.5% in the next decade.

even with that kind of growth, even with that slow down, we can achieve what the government is aiming for. >> what does that mean in terms of the necessary structural reforms, the demographic reforms , like getting the birth rate up? can they fight against the tide of the asian population? that will have a huge impact on whether they can meet that goal. >> china definitely thinks -- can face its demographic challenge. unfortunately they change slowly. even if people give birth to more children, it will not be quick enough to make a difference for the labor market in the next 15 years. what china can do as you mentioned is performed to unleash the growth potential, that increased labor market

participation from the rural population and also expanded the retirement age. china's retirement age on average is very young, in the mid-50's. and also the transformation from rural and non-productive sectors to more productive sectors are now complete. it will also require support to the private sector, which are more labor-intensive. and also increase efficiency. for example in-state honed -- state owned enterprise reform and domestic circulation breakdowns. lower market entry barriers for private and foreign companies and, of course, land reform and capital market reform so that the productive sectors can be combined together more effectively. and of course, most recently the emphasis on fostering

innovation, as well. technological upgrades. digitalization. all of these are elements -- factors that will support future growth. >> always great to have you with us, from hong kong. ubs's chief china economist. we are staying on the npc. what policy clues we will be watching out for today and where relations and washington and beijing may be headed. >> number one is the mix between consumption and investment. china can start by doing a pretty good job asking questions and the circumstances. obviously there are differences between the two countries. the u.s. is trying to protect its supply lines so it does not have to source outside and

develop products within its country. i think you will see china move slightly towards an e currency ever so slightly. we might not see the dollar dominate world markets so much. it will be interesting to see how far they go. on the u.s. side, clearly, this evisceration, the bided and ministration will -- the biden administration will be doing a reset and looking at the sanctions and trying to figure out, which of these are effective and which are not? some are not very effective. they hurt people. they hurt people in china more than they hurt americans. you will see this administration look at all the sanctions try to figure out which ones work and which ones do not and you find out which in the toolbox are effective. >> we are excited to hear more

develop its on their plans to overall the electoral system in hong kong, as well as references to the -- you have said that under president obama, the u.s. did not have leverage to really do anything about that situation. or potentially, what is happening in hong kong under president biden. but leverage is there, in terms of some of the sanction reviews they are saying will take place? >> i think, frankly, some great leverage is reputational risk that china suffers if they do not address hong kong, especially if they do not -- it is difficult for sanctions proposed by the u.s. or proposed by other countries like the u.k. to have real direct effect. that is why i think biden will try to do a reset. on the other hand, the more

western countries strongly espouse human rights, that embarrasses china. xi jinping as his legacy wants to be a country that is respected. the united states stands up for human rights and that empowers people in china, whether they are in hong kong or wherever. it gives them hope. that is something the u.s. has done in the past. and do it, but do it appropriately. do not try to embarrass china, but still be strong and stand up for human rights. >> there have been high expectations about this. is it a concern for you that we may be seeing this from western democracies in cases like myanmar? we have u.s. and u.k. stations on myanmar generals, but asian countries not joining in on the effort. >> asian countries are very much

caught between the two elephants. china and the u.s. when i was talking to a southeast invasion -- a southeast asian ambassador, he was saying the united states should stay in the tpp. he said they wanted to play a soft against china. -- play us off against china. those countries are there so they can plaster off against each other. they do not want to be influenced too much by china. same with the u.s.. >> coming up next, another big listing is headed -- is heading to hong kong. chinese search engine giant b aidu has won the green light for a second listing in the city. details ahead. this is bloomberg.

>> i'm a leader that works on figuring out destinations that we should aim for and then chooses the direction. >> this is daybreak: asia. i am vonnie quinn with first word headlines. the u.s. senate takes up the $1.9 trillion u.s. -- covid relief bill backed by china -- backed by president biden. this will be the sixth stimulus sense pandemic triggered lockdown. vice president, harris lever first tie-breaking vote after all 50 republic's rejected the bill.

jay powell shops -- stop short of in his webinar said there is a lot left to do, signaling no policy tightening is on the horizon. treasury extended offers and inflation hit record highs as powell spoke. >> i would be concerned by disorderly conditions in markets. i would be concerned if those things were to happen. >> the u.s. and u.k. are considering more measures against russia over the alleged use of chemical weapons. according to our sources, they are weighing options ranging -- waging a -- ranging from's sanctions against a -- and oligarch. global news -- global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

i am vonnie quinn. this is bloomberg. >> let's take a look at this comes to asian markets this friday's session. >> we are seeing losses him more than 1% in tokyo, as well as sydney with tech stocks of long -- among the biggest lag. the kospi falling below that 3000 level. we have the yen on slightly firmer footing after reaching 108 and the nikkei headed for a second weekly loss this morning. little relief being provided by the boj governor. he said there will be no hesitation to add easing as needed. the jgb 10-year is staying around 15 basis point levels. we have benchmark rates in asia. higher insult the end of

january. we are not seeing intervention from the boj or rba just yet. the yields on the up. switching up, this chart on the terminal focusing on oil. pull up the chart, we haven't topping $64 with opec changing supply curves. warning that by than the alliance made zeroed in part to increase appetite of more barrels as economies recover. over at j.p. morgan, they raise their brent forecast by two dollars. they are going to average $74 by 2022. >> we are waiting for the opening in hong kong, as well. another big listing could be coming this way. sources saying that baidu has secured approval for a second listing in the city which could launch as soon as next week.

julia, another homecoming ipo. how significant is this for baidu, as well as hong kong? >> yes, another one. started with alibaba and now a lot of companies are looking at doing it. it is significant for them. it will be a large deal, several billion dollars, and it will allow it to get investors, and be traded in hong kong, just in case relations between the u.s. and china were to interior it further and the delete staying -- jill the listing ends up on the cards again. it is extremely significant for hong kong. it is one of these many large deals the exchanges seeing. there has been a boom in ipo's this year. what happened last year continued this year.

this will be one of the bigger deals of the year. >> in terms of how much share capital putting up for the offer, how much do you think will be raised in this? >> it depends on how much they choose to sell. they have an almost $89 billion market cap in the u.s. so we are probably looking at between 5% or 10% of that. we are looking at around probably $4 billion, if not more. it will depend on the markets and how the markets are doing, whether they choose to do a bigger deal or not. but it is one of the larger ipo's/second listings expected this year. >> you talked about, julia, has significant the listings are for

the hong kong markets and the hong kong bosses looking to revamp themselves. are there any companies planning similar listings? >> there are. there is one which is currently in the market right now, auto home, the car website. they are up to $984 million. there are some larger ones as well. tencent music has been reported to be looking at listing. weibo, as well. undoubtedly, a lot more. there is a huge push amongst the companies to do this. it is a good thing for hong kong , lots of tech companies are listing in the exchange, when you did not have such a large contingent even if years ago. >> equity capital markets reporter in hong kong, this is

daybreak: asia. this is bloomberg.

haidi: here's a quick check at the latest headlines. the exchange rate fund has raised all its gains for the year after closing 5% lower in new york. the innovation atf has fallen 24% since hitting an all-time high in february.

for the past year, the $23 billion fund is among the best u.s. equities. bloomberg named them this best stock taker in 2020. after hours trade is the company's main ship division reported estimates that just missed -- aborted earnings that just missed evidence. -- estimates. china's top technology dealmakers ramping up its push into investment banking. china resinous on has made its name advising and investing in startups. it is seeking top visions in blockbuster listings alongside wall street banks. >> in case you have not heard, it is a big day and china. beijing will attract lots of attention today with the national people's congress getting underway. keep your ion shanghai and

shenzhen and perhaps even hong kong, when the markets open. markets providing something of an unwanted contrast, it is interesting. usually with a big event like this, you expect everything, from the weather to the markets, to fall into line. >> right. good morning. you guys were talking with tom earlier. i think the backdrop there -- to your earlier point on the weather, i am here when i look at markets, for example. you point a contrast today. i'm looking at the contract was -- which has to start trading in singapore. does down below 18,000. we are watching key levels here. there might be a 10% drop from its peak. 5277 -- ok, 27, i am getting my numbers confused that is from about 20%.

internet stocks, we talked about that. a lot of things to walk -- to watch. price might be attractive, price action might keep people away. let me end on this. take a step back. when you look broadly at market breadth, for example, this has been starting to come off and has narrowed to around 50% in terms of the numbers of stock trading above certain key averages. it will be a big day. watch what happens in shanghai, shenzhen, and obviously here in hong kong. shery: we do have that speech coming up. let's turn some of those specific stocks to watch out for today. sophia's following that. sophie echo >> --sophie? >> the cbc upgrading hong kong banks for the rise in u.s. yields. they saying the increase,

pricing of only about 1.7% to 2% less you halfway through reflationary trade. we are seeing more upsides there. a better economic outlook. the possibility of a rate hike. when it comes to stuff, they bring especially within the boc hong kong the most, followed by financial holdings. city is upgrading hong kong banks on the economy. shery echo shery: we will watch china very closely today. we have the chinese premier and speaking the anytime now. our market coverage continues as we look ahead to the start of trading in hong kong, shanghai, and shenzhen. say time -- standby for bloomberg markets, china open. this is bloomberg.

anchor: welcome to bloomberg markets china open. we are live from beijing. just minutes from the start of china's biggest political speech of the year. as the premier get set to layout beijing's blueprint for the next five years. >> we will be all over the story here and all the other angles surrounding what is