>> a very good morning and welcome to "daybreak: australia." kathleen: good evening. i'm kathleen hays. >> these are your top stories. china says high quality development is the main theme of growth plans. china's recovery remains on

track. strong overseas demand. president biden's relief plan is one step closer. it is expected to lead markets at the start of a new trading week. and covid-19 and lockdowns deepen inequality. kathleen: let's see how asian markets are shaping up on the first day of the trading week. the baton handed. a stronger than expected jobs report. $1.9 trillion stimulus passed. everything except futures getting a lift. new zealand up 1%. and auckland reopened after a limited shutdown due to the

virus. there is a plus for that stock market. sydney futures, australian futures are up 1.6% building on some of the momentum from friday and the news over the weekend and an interesting story -- look at that red-hot aussie home market. nikkei futures up nearly a percent as well. the kospi the loan loser. >> even though the figures are distorted by a low base from 2020 when the economy was in lock down, the numbers do reflect a boom. let's go to stephen engle. the numbers are very strong. stephen: three main things the

chinese government was pointing out with these trade figures. you have strong export demand in the key markets particularly the united states and europe. you also have a strong domestic recovery helping to stoke imports. imports up 22%. exports were up 60.6%. we were expecting a 40% gain. there is a base effect. keep in mind, the holiday period in january and february was much shortened, the travel time of migrant workers was shortened and factory workers took advantage of that. they opened quicker. they resumed operations quicker helping to fuel the obvious product machine in china and demand kept case with that.

in the united states and in europe. we are seeing large increases as well for the imports and purchases of steel and natural gas and a plunge in coal. that plays well with the theme mentioned by the chinese president yesterday. the theme for 2021 through 2025 is going to be high quality development. kathleen: a lot of momentum on the economy side but it looks like china may also be flexing its political muscles. two stories breaking on the bloomberg -- a top china diplomat warning biden to tread carefully on taiwan. talking about how the national people's congress is pulling back on what will happen with hong kong's free elections, not looking free at all perhaps. stephen: taiwan has a long and

has always been a redline for the chinese. they want the united states to respect the one china policy. they do not want to go down the same path as the trump administration. the biden administration has not on round -- unwound many of the trump administration's policies. he is laying the foundation of what is acceptable and what is not and he said crossing lines and playing with fire on taiwan will not be accepted. no room for compromise or concessions. he says it is important that the united states recognizes this as otherwise the world will remain far from tranquil. kathleen: there is a warning. our chief north asia

correspondent. moving on to president biden with a legislative win with the covid relief bill passing in senate -- in the senate. let's cross over to ros krasny in washington. it looks like the biden team is on the verge of a solid victory. ros: it does look like that. the winners less the biden team than the american public. we are looking now for the house to take this legislation up again on tuesday. there have been some changes since the house passed it. we have heard that although some of the wish list was whittled away, many are happy so we could

get this to biden by midweek. >> you talk about a lot of negotiations and horsetrading to get to this point, what does the package look like? what had to be sacrificed to get it through? ros: it is good to remember that the horsetrading was basically between democrats. there was very little horsetrading with republicans because they did not support the legislation. they will get the $1400 direct stimulus checks that most americans will get. that is a big one. extended unemployment benefits that go through september. that is a key one also. and there is money for vaccine

distribution. there is money for state and local governments. there is a lot in here. republicans would say, especially since a lot of the money in the bill will not be paid out until well beyond this year, that it was less a coronavirus stimulus bill and more of a democratic wish list. there is a tremendous amount of money in there across the board. a few things were added. lisa murkowski, was instrumental in getting an amendment to get money to children in homeless shelters. a little bit for everybody, really. >> ros krasny in what looks like will be the final leg of this debate and drama. let's get over to vonnie quinn. >> saudi arabia says a terminal

has come under attack but production appears to be unaffected after the barrage of missiles was intercepted. there were no injuries or property damage. the reported attack would be the most serious against processing facilities and oil fields since september, 2019. the u.s. has sent b-52 bombers in the latest warning to iran. they were accompanied by aircraft from israel and saudi arabia and qatar. the bombers flew from north dakota though that has not been confirmed. million mar -- myanmar is plunging further into chaos. witnesses say security forces fired tear gas and stun grenades as authorities warn of up to 20

years in prison for dissidents. -- dissidence. reports in thailand say the government is planning to relax quarantine for foreign visitors. this would boost the tourism sector. talks on monday will discuss letting foreigners leave their hotel rooms after three days of mandatory isolation though they will still have to stay on hotel grounds. 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 and this is bloomberg. kathleen: still ahead, we discuss the impact of the pandemic among australian clients with rachel ferrell. we will also discuss what needs to be done for women and minorities and the workforce.

first, we speak with a top-ranked female fund manager and opportunities in the australian market. fidelity so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.

haidi: australia's success in controlling the coronavirus has aided domestic stocks recently. let's look at where the opportunities are. i want to welcome in our guest. it is a pleasure to have you with us on international women's day. take a look at the macro future. even if you considered this is being supported by monetary policy ease, things are looking

pretty grim and australia. where do you find these opportunities? kate: we are in the fortunate position here where government was the main shock absorber that has left consumers, businesses, and banks with fairly high levels of confidence. we had many debates last year about the shape of the recovery and i think we can call it a v. there is a lot of strength and a lot of the areas of the market. there is a broad-based -- it has been one of the strongest reporting seasons we have ever seen on the back of that. haidi: i want to throw up this that compares where the asx sits in terms of comparison compared to other asian markets in the region. the nikkei and the kospi are

charted there. does that talk about a cycle, the good economic recovery, and the absorption of the shock from the pandemic means we will get an outperformance in australian stocks? kate: we are pro cyclical. when we have a surge in commodity prices, that is a strong positive for our mining sector and our energy companies. but we also have a lot of u.s. dollar earners. there is a reflationary strength from the commodity side of the market and then the headwinds from the strengthening aussie dollar dampening the profits reported by companies that are predominantly earning in u.s.

dollars. it is an armrest between those two factors. kathleen: the banking sector has the heaviest weighting in your fund. what makes you think this is the place to earn money now? kate: there are a lot of medium and longer-term challenges for the major banks but for right now, they are benefiting from the confidence in the economy and by very stimulatory measures making housing more attractive than it was. we are seeing a resurgence in home lending and much lower rates than were expected even six months ago. but the more interesting story in that sector is macquarie group. it is positioning itself as a bank of the world. that is a push to the

decarbonization. finance will have to pay a big role in doing that and it is positioning itself to take advantage of that. kathleen: i know you are looking into the future -- you are very positive on esg, environmental, social, and government. why are you so positive about it? is this a particular australia story or a global story? kate: it is definitely a global story. maybe even led out of europe. our large funds are on the same topic. i think it is just becoming more widely understood that we have this massive need and opportunity for decarbonization investment. interestingly, metals are going

to be a key part of that. bhp has calculated that nickel -- there will be three times the amount required by the world in the next 30 years than in the past 30 years. ironically, miners will play a key part in this decarbonization effort and australia has a good representation in the mining sector globally. haidi: the lack of female representation in your field. more broadly across the industry , globally as well. is that something you think could change post-pandemic because companies will assess how much more flexible it is that people can work? kate: i am hopeful and we have seen incremental, positive movements. i think the finance industry

does not sell itself well to the community. perhaps this esg need to tackle this important challenge might make the finance industry more attractive to female participants. if we can get a broader range of participants into the industry, that can only be good for the industry and the outcomes we can develop -- we can deliver to our clients. kathleen: it looks to me like you are a great role model for any woman interested in entering this industry. thank you so much for joining us today. portfolio manager at fidelity management, kate howitt. don't miss a big interview coming up in the next hour. arguably, the most powerful woman in global mining today. elizabeth gaines joins us to discuss iron ore, china, and

boosting female participation in the industry. this is bloomberg.

haidi: let's take a look at some of the stories we are watching. the asx opens in about a half of an hour. pointing to gains. potentially snapping the two-game -- the two day losing streak. the mining billionaire wants to cash in on a growing global beef market. will we -- we will be on the watch for any takers on that. and we continue to watch the movement at greenhill capital.

let's get more about those exits at greenhill capital. we are seeing an increasing number of companies that could still face consequences from the greenhill downfall. >> there are three australian companies that have invoices from greenhill. it has been the business model based around supply chain finance of allowing small companies to be paid more quickly. it created investment funds by financing short-term loans. following its collapse, banks and insurers are chasing down invoices sold to credit suisse's funds.

telstra is it reassuring that payments will be made. there is a balance of 144 million as of the end of december. kathleen: do we know the extent of the knock on effects of green hills -- greenhill's collapse? >> australian rail track has no direct exposure, emphasis mine. it is applied though by another company that is in turn owned by tng alliance and some of its subsidiaries that has been voices held by credit suisse. there are liabilities and interlocking connections everywhere. concurrent legal battles are

getting underway. freensill -- greensil has several executives gone and more are expected. kathleen: investigating a sophisticated hack on business emails threatening to become a global cybersecurity crisis. the company says the breach again with a government-backed group in china that claims 60,000 corporate victims around the world including banks and utilities as well as senior citizen homes and an ice cream maker. crypto coin -- improving on changes to the networks. the move will reduce the amount of outstanding ether by destroying some of the tokens every time it is used. the change may spark a further

rise. kathleen: rio tinto -- rio tinto sending executives. it will include a new financing agreement for expansion with underground mining as well as taxes and benefits sharing. rio tinto says it remains committed to working with mongolia to ensure the success of the project. fears that saudi aramco a struggle to reach its dividend next year is being eased -- are being eased. it may even post its payout. -- boost its payout. oil tumbled last year and covid-19 devastated demand prompting lower spending and higher borrowing. haidi: let's take a look at our asian markets. we are seeing trading moving to the upside in new zealand.

kiwi stocks up by 1.1 percent. sydney futures also looking like they could reverse a few days of losses. we saw the u.s. moving one step closer to the massive stimulus package. the china data pointing to a future of robust recovery. we did see japanese stocks rebounding on friday. tech stocks in particular snapping a three day losing streak. kospi futures looking like the laggards so far. coming up on daybreak: australia, we will be joined by two big names. this is bloomberg. ♪

>> you are watching "bloomberg daybreak: australia." your first word headlines this hour. export search in the first two months of their affected by overseas demand for goods but those figures are skewed by last year's low base independent of lockdown. outbound shipments dumped 60% in dollar terms in january above the 40% estimate in the bloomberg survey. imports rose here also beating expectations. >> and china is warning>>. date u.s. to roof -- -- the u.s.

policy on taiwan. beijing says there's no room for debate. the u.s. has no official relations with taiwan though trump administration officials visited taipei. china leaders are repeating high-quality velvet is the main theme of growth plans next few years. -- high-quality development is the main theme of growth plans. president xi xinping reiterated high-quality is required in all chinese regions not only about what areas -- not only develops areas. he spoke on sunday. the u.s. recorded one full week with fewer than 70,000 daily fires cases for the first time since october, although its top disease expert anthony fauci says restaurants are is restriction including new york city to open at 75% capacity and spring break is learning students to florida raising

fears of a new wave of cases. >> these are first word headlines. >> optimism may be spreading as vaccines roll out. many developed economies rebound from the pandemic. but it is a different picture in the world's poorest countries. for some, the need to finance a crushing debt burden is sucking resources away from fighting the virus, which has hit women among the hardest. enter two top officials from the world bank and international monetary fund whether an op-ed on bloomberg opinion today urging transparency, as a key steppingstone toward providing these countries debt relief. joining us now to discuss is the vice president and chief economist at the world bank, carmen reinhart. andy imf chief of strategy -- and the imf chief of strategy. jayla, remind us, this problem, has it gotten worse during the pandemic for the poorest?

>> hello, kathleen. yes, even before the pandemic we were warning about the debt buildup. with the pandemic this has become more like a tsunami of debt facing many countries. about half low income countries are either in or it high risk of debt distress and they face large debt payments over the coming years. so this is critical we address this issue so they can address the crisis and get out of the health and economic crisis going forward. you know advanced economies have been providing policy support, 24% of gdp on average and this has been less than 2% of gdp for lower income countries. so as we move into the next phase of the crisis with existing from the health crisis, withdrawing some support measures, it is going to be very important measures to address this state challenge countries

face. >> let's turn to transparency, your op-ed out today, sunday, in the u.s.. transparency is a key to unlocking the door, to getting debt relief. we hear about transparency and accountability all the time. tell us why this is not just a buzzword, why it really matters here? >> well, look, kathleen, at any point in time, whether it is good times or bad times, transparency is very important for monitoring, for risk assessment, surveillance. it is, how can you monitor economic health without really full knowledge of a country's debt, what it owes, what are the parameters of those debts?

and so, it is always -- transparency is always critical. however, why is it critical now? the pandemic has been a tsunami. the pandemic has also been a very regressive shock, in every dimension, right? hitting the poorest within country, but also across countries. if you look at 2020, 50% -- 15% of sovereigns in advanced economies were downgraded. when you go to emerging markets in developing countries it is 40%. that have been downgraded. so it is not a surprise we are talking about debt problems. why is it critical now? it is critical now because the g20 initiative, the common framework, to deal with debt problems and help countries

through this very difficult process, needs different creditors to come together, to offer the process of concerted debt relief. an organized debt relief, debt reduction. this is a problem if creditors do not trust one another. and right now we have a very varied group of creditors. we have bondholders, we have among official creditors entrance, not paris club creditors like china. so, it is a complicated environment, and transparency is key for that creditor coordination. kathleen: and people getting the same data, some data is not a

was released in a coherent, consistent manner. so here we have the world bank and imf working together, so this is a big issue for these important institutions. at the imf you are looking at special drawing rights, the way sdr's are traded and allocated and what does that have to do is transparency in solving this problem? what are you urging people to do? >> so, this is transparency in terms of how public revenues are spent, in terms of building trust, with citizens, with creditors. it is really very important. and in this context you talked about sdr, but coming back to transparency before i go to sdr, public debt should be public. and it is very important, we have been focusing on these issues and working closely with the world bank, making sure countries have the fiscal space

to relate spend on vaccines, on exiting from the health crisis, and also dealing with the economic impacts of the crisis. and that is why transparency of public expenditures, public spending, is really critical. kathleen: ok. so, as for the world bank, carmen, you have been talking about this for a while in terms of transparency and steps that can be taken. what is it your urging countries to do? >> look, it is again -- it is a game where both creditors and debtors can win. transparency is a public good. in the process of data gathering, getting much better information from the creditors and the debtors on borrowings that go unrecorded, state enterprises that have borrowed,

domestic debt, which is new to many of the low income countries , it is importantly, under recorded. so there are a lot of inroads. it does not sound terribly exciting, you know, this data gave during process -- this data gathering process, but it is quite fundamental. because we go to these boom bus again and again-- busts, again and again, and if there's any hope of getting to the sum quickly and trying to avoid the next one, i think transparency is not a buzzword. it is actually very important, for global surveillance. kathleen: is china -- china is one of the new big creditors of the world. are they being transparent enough? are both these institutions working with the chinese counter

institutions? and they are members of your groups. how about their role, and making this resolution happened? >> china has a very important role to play, because it is part of the g20, and the debt buildup in the last decade has been to not paris club creditors which include china as well as other countries. and the debt service suspension initially which the g20 put in place last march, after a call by the ims monetary director and world bank president, this has been endorsed by all g20, including of course china and it participated in the debt service suspension initiative which has been critical. similarly, in november, leaders of the g20, including china, accepted wholeheartedly, the

common framework for debt treatment. this is, as carmen mentioned, critical to address debt problems going forward, and we have been working closely with the chinese authorities so they can participate and support this initiative. kathleen: hedge funds, the financial side of this, though, those companies and forces that are also involved in this? >> well if you go back to the crisis, the debt crisis of the 1980's, the big unknown at the time was actually in private debt, syndicated lending was opaque. we still have quite a bit of opaqueness on the private creditors side as well. not on the same scale, of course, the 1980's. but there is much room for improvement.

the institute for international finance that works with private creditors has gladly, they have started an initiative, to increase also the transparency on the private side. let me add that the area where we have the most transparency, though, is the area where a lot of the intense negotiations are likely to happen which is bondholders. on their side we have a lot of transparency. but the bondholders also have to know who the other creditors, what the other creditors positions are. kathleen: i want to see if i can get the same question to both of you quickly. let's start with the question of women, the most vulnerable. crisis is hitting them hard, especially in poor countries. what needs to be done for them

by the world bank and imf coming out of this? >> look, i mentioned at the outset this has been a very regressive crisis, meaning it has hit the most vulnerable the most. that includes women and girls. we are seeing big setbacks on schooling, girls that are taken out who will not return to school. disproportionately, the new poor, a new report late last year that the bank put out, identified women in disproportionately high share of women in the new poor. what is the world bank doing? well, the world bank mission to reduce poverty is a long-standing one. but part of a new flavor of the initiative is called grid, which stands for green and inclusive recovery.

green and inclusive development. inclusive being part of targeting social spending on education for women, and the report i recently put out, my team recently put out, identifies legal issues that are still a problem for women. and in many countries you can still be fired for getting pregnant. kathleen: oh dear, that has to change. gosh, it is hard to think back to that that used to exist. and it still doesn't some countries. and what is one thing you think should be done for women? >> ok, it is very important to have women's lending policies and that is what we are pushing in our surveillance and lending and our analytical work and in development. active policies with a gender lens, making sure you measure it and what is the impact?

i making sure in our budgets it is gender friendly, that the informal sector which is housing many women employees, the policies are targeted at these important activities were women carry the largest burden. kathleen: i want to thank both of you so much, a fascinating conversation at think you for joining us today. vice president and chief economist at the world bank and imf director of strategy, policy and review. thank you so much. keep it here, plenty more coming up on "bloomberg daybreak: australia." this is bloomberg. ♪

>> time for morning calls ahead of the asia trading day with sophie kamaruddin in hong kong. our markets willing to say what could be the light in the sand for the fed on bond yields? sophie: dark caution in not risky positions could be liquidated before we get to that, when it comes to emerging market currencies, a team of analysts are staying constructive on effects but opting for a low beta expression of this you as low yield or's, they are proving to be more resilient while high yield or's have given up gains on concerns over u.s. yield volatility. the chart favoring currencies like the offshore yuan and the

ringgit, as well as a u.s. dollar on concerns over trade and economic recoveries. haidi: how are we seeing the outlook for the yen getting changed as a result of treasuries, is 110 on the horizon? sophie: double shot you are seeing you could see the dollar yet reach 110 in the coming months. given how the rep vaccine relative recovery in the u.s. is faring, compared to that of japan, and downside pressure on the trade balance of japan are seen as catalysts for that. plus a move on the u.s. 10 year yield above 160, on inflation best could be a driver to push that dollar vignette above 110. -- the dollar-yen above 110. haidi: covid-19 is pushed world into uncharted waters. for how the asset management industry is facing uncharted

challenges. let's bring in alice from jp morgan -- an analyst from jp morgan, on international women's day. we are lucky in australia with the handling of pandemic and the relative return to know reality quicker than other parts of the world. has it been a return to normal for your business? >> yeah, we were very happy with our ability to very quickly adjust to the covid environment. many of us are working from home , i am home today, still. so, yes, we were quite happy that it did not, our business really do not miss a beat to the whole thing. nor did we feel most where clients were extremely well-prepared as well. haidi: that is what i was going to ask in terms of shift in perspective of what you are hearing from clients. for example, in terms of risk aversion or risk appetite. have you sensed much in the changes they will be wanting to make two portfolios? >> no, i mean the clients we

work with our, i would say, cautiously optimistic, as you have been talking about. the economic climate looks pretty good. and they are looking to reposition their portfolios now, for this particular environment. they are looking at low yield and what they can do about low yield, how to add diversification to their portfolios. many of them are retaking many of the initiatives they were looking at pre-covet, like credit reevaluation -- pre -covid, credit reevaluation, credit in the portfolio, emerging-market debt, china, increase in the a part of the portfolio, and an increasing focus on income. haidi: what about the latest battle between the rba and the bond markets which is playing outward globally as well? is that kind of dislocation, and what is the return for normal for equity markets or bond

markets on the other cited that your clients are starting to think more seriously about? >> in the clients look at more of a long-term, none of this has too much of an impact. clearly, with the stimulus measures in place, there is some concern for inflation. but nothing to derail the allegedly positive outlook for equities at this point. psg has become a very big initiative now as well -- esg has become a very big initiative now as well, surly after the fires as well as the pandemic. clients are looking at esg, and a particular climate, and positioning your portfolio around innovation in that area, sustainable investing, new technology, renewable energy becoming a larger focus as well. haidi: you see esg choices becoming less of an alternative or nice to have and something that really is a mainstream way

investors will need to make their decisions going forward? >> correct. we are seeing esg becoming extremely mainstream. we ran a survey recently that show clients are considering esg within their top three considerations when they are making investment decisions. so that is quite prominent, in their thought process. haidi: so, we see and hear a lot from the financial sector, particularly the big wall street banks. generally there is a sense that a return to pre-pandemic working arrangements is something most of these firms would like to get back to. is that something you are feeling will be the case, when it comes to jp morgan asset management within australia? what does the post pandemic workplace look like to you? >> is still early-stage to look at that, but i do not think things will go back to exactly where they were before. certainly at jp morgan we have noticed having more flexible

work environments works well for employees and the firm. he office certainly has a role in terms of maintaining culture and conductivity. but it is important to maintain flexibility. here we are on international women's day, and one of the bright spots in all of this is flexibility is very good for women. and we very much would like to maintain that. so at jp morgan we do not consider we will go back to a pre-pandemic arrangement. haidi: i think one of the things we go back to and perhaps it is most significant on international women's day is how, out side -- outsized the impact of the pandemic has been on working women and working mothers and women across all levels of the economic and social status. what are some of the policies that jp morgan is looking into or is dedicated to, to ensure the post pandemic pew of equality is different to where we started from? >> yes.

certainly, diversity. we believe diversity and inclusion is absolutely important for the business. and being able to have a diverse workforce, including a good representation of women, is going to lead to greater business success. so, for example, in the asset management business of jp morgan, i'm happy to say 22% or at least it is a start, 22% of our portfolio managers are women. and those women manage or comanage 38% of the total assets we manage, so they at -- they manage some of the largest portfolios of assets we manage. and that is about twice of what we believe is the industry average of 11%. so it is still a long ways to go. but we are certainly on the road of trying to make sure we have more gender parity. because that is beasley good for our business. so there are -- that is obviously good for our business. so there are number things we are doing to continue to encourage diversity.

for example, it starts at the top. jamie dimon is very focused on the seven top. his own operating committee is 50-50 gender balanced right now, so that is a good start. and we have started to include a tracking measures as well as including the statistics, as part of ati, as part of performance management, which we believe will make a big difference. haidi: you talk about change needing to come from the top. there has been concern from the very top here in australia, some criticism of working conditions and toxic working culture in canberra. is that something you haven't observing -- is that something you have in observing, i'm keen to get your views on that? >> i cannot say i am observing every other firm in every other part of the society. but i do think there's a focus on this now. and i do see a significant change. i see in our own organization. and while there is a lot of work still to be done, i would say we are definitely moving in the

right traction. and things like this tracking as i said, monitoring and creating troop focus on the actual numbers, is going to make a difference. that is relatively recent we are seeing that were accepted. so that is a step in the right direction. haidi: always great to have you with us, rachel farrell, jp morse -- jp morgan asset management australia ceo. coming up state street macro strategist lynn weiss is with us. plus elizabeth gains from fortescue metals will be with us talking about how to increase female participation in a very male-dominated mining industry. the australian open is next, and trading could snap two days of losses here at the start of trading in sydney. the aussie dollar higher at 76, 97, on the back of a dollar fallback. more to come.

this is bloomberg. ♪

haidi: good morning, we are counting down to asia's major market open. kathleen: welcome to "bloomberg daybreak: asia." our top stories this hour, president biden's relief bill is one step closer with house approval expected to follow in the senate. it is expected to live markets at the start of a new week. oil expected