haidi: good morning i am haidi stroud-watts in sydney counting down to asia to of his major market opens. shery: i am shery on welcome to "daybreak: asia." the fed stays dovish with jay powell signaling rates are likely to state near zero through 2023 despite an upgrade for the u.s. economy's outlook. he sees inflation settling back after jumping this year. asian stocks look poised to

climb after that message from powell lifted u.s. equities. treasuries advance as the fed remains tolerant of the recent rise in yields. the u.s. looks to ban more chinese carriers from the country saying they are a security risk controlled by beijing. haidi: let's look at how the markets are joining the fray. what do you think, sophie? sophie: markets taking things in stride after the handle from wall street. little changed but to the downside with pharrell and bigo industries going so far on the share market in sydney. the aussie dollar holding above 70 ahead of job did i do from australia, this also as the dollar fell in the wake of the dovish dance -- stance from the fed. keep an eye in new zealand, travel related stocks gaining ground amid prospects of a troubled quarter being opened up between australia and new zealand, so hoping to anticipate

this after we saw that surprise gdp report that saw the economy contract .9% year on year in the fourth quarter, and switching of the board to see what else is happening. sce minis moving to the upside will trigger a futures are kicking lower to mix up the set with a mixed messaging with 17 of 18 board members calling for a rate hike in 2023. we do have the yen steady in terms of lift up in the u.s.. those are proceeding had of the review on friday. we also have news from japan, the government recommending that the guidelines be lifted on march 23 as planned. it nikkei futures moving to the upside this morning. on the central bank calendar you have taiwan, indonesia up to bat. no change expected from indonesia with the prospect seen returning in the second quarter, and taking a bigger picture look when it comes to central banks globally come pulling up the

chart on the terminal, while we are seeing more optimism around a global rebound with the vaccines accelerating, there is a risk global central banks may be falling behind the curve with our recovery, as we are seeing more signals of tightening, although brazil did burst through with the anticipated rate hike. shery: let's stay with central banks. the federal reserve still planning to keep key policy rates near zero, at least through 2023 even as they forecast faster growth, lower unemployment, and despite inflation. kathleen hays joins us with the latest. the markets look really focused on that. what did we get? >> we got a small change. a lot of people figured nobody would change anything. there was some speculation a couple might shift, but some people looking for that see that as a possible portent of things to come, because now there are

seven out of 18 fed officials who see a rate hike in 2023. by the end of 2023. take the four who see it happening before that. there has definitely been a shift, but there is still a consensus, a median forecast for no change until 2024, but what also struck me when i was looking at headlines today is look how much they revised up their forecast for the economy at least in 2021. at the fed was already looking for strong growth when they surveyed the landscape back in december when viruses were still raging, when we did not have the vaccine rollout started. if you look at the gdp forecast for 2021, it is up 6.5%, the strongest growth we have seen

since 1983, up from 4.2% when the fed made that forecast in december. they see it falling down to 4.5% instead of 5%. they see the measure up to .2%. they firmly thought it was only 1.8%. a couple more people say maybe we will hike a little sooner or the economy will be strong in the forecast and did the outriggers you can see numbers come down, including inflation. the fed feel they can take their time if that is how it works out. powell stressed everything is going to be outcome based. it we will not move on forecast, only on actual numbers. this is important to the bond market so they know no matter what they think about what the fed should do, jay powell says i will let you know when we are ready to do it. haidi: she was also pretty sanguine when it comes to the recent job it in a bond yields, and the former president of the

new york fed is not that worried either. >> one of the things jay powell stressed not only today at their press conference but in the past two or three weeks and webinars speaking. there are a lot of indicators that tell us what financial conditions are doing, because that is concerned. bond yields will be tightened. a lot of these other indicators are not pointing in that direction. another thing powell is looking at is this chart. yes, inflation is going to be up this year for a wild but it will be transitory as we come out of the pandemic and things i just -- adjust. you can see how long it has been since the fed is bent at the 2% target, let alone staying above it. what if it is not a transitory rising inflation? what if inflation goes higher and stays higher? that is where this question of are you worried about higher bond yields comes in. i asked the former president of

the new york fed about this. here is what he said his concern is. >> i would be concerned by the backup it a bond yields we have seen. the bigger concern is what happens down the road if the federal reserve is too slow to tightened monetary policy. at some point they will have to catch up, and that catching up process could be not very pleasant or financial markets. that is a way down the road. >> that was one of the things people who have been through many of these cycles, they look to the past and stated that is what happened in the past. others say it is different now. technological changes, globalization, you were not going to get wages and inflation to rise like we did in the past, but when you look at the commodity cycle, it looks like it continues to move higher. these are the things that people concern. one more reason we will be watching future speeches from federal reserve officials trying

to figure out what those docs are and what it means in terms of future rate hikes, how soon they come. haidi: kathleen hays there with the latest. you can get more on the fed policy direction and today's edition of daybreak. it is on your terminals, also available on the bluebird anywhere at -- bloomberg anywhere at. -- allied the federal communications commission says they suppose -- pose a security risk. let's get to tom mackenzie and beijing. at what is behind this latest move? >> this is the fcc with a 4 to 0 vote concurring with security agencies in the u.s., saying these companies pose a security rent -- threat to the united states, whether disruption of communications or espionage, they are a threat.

that is the view of the fcc, what the chairwoman said is they are indirectly owned and controlled by the chinese government. there is strong reason to believe they will have to comply with a request from the chinese government, so that is the rationale for this move to ban china unicom and comnet. both companies have a chance to present their own evidence. one company saying it is operated in the u.s. for 20 years and fully complies with the law, but momentum seeming to be going against them, because this builds on previous bans and curbs web seem, whether on their way, equipment manufacturers, and the banning of china mobile back in 2015. shery: all of this coming just ahead of the alaska talks. >> that is right, you have had these moves to ban chinese

telecom companies. you have also added additional sanctions on hong kong officials put in place by the united states, a ramping up of those curves, all of this building up to talks in alaska. at what we have heard from dow jones, but they have been reporting with the chinese side what to bring to the table. have a laundry list of requests, including they want the u.s. to ease sanctions on individuals and chinese entities. they want those were moves. they want an easing of curves on visas for members of the communist party, students, academics. they what the houston consulate reopened and they want those curves on u.s. technology flows to be scrapped as well. that is a laundry list of requirements on the chinese side. we know it is a very different story when it comes to the u.s.. they downplayed expectations about a major breakthrough. they want a list of their own

complaints about chinese behavior, whether in shenzhen or the south china sea. there was a lot of light between these two sides. one potential area of overlap is climate change, another as global health, but this is about sizing each other up. shery: tom mackenzie it beijing did get more on this with vonnie quinn with headlines. it we are talking about top u.s. diplomats and south korea. >> the u.s. secretary of state criticizing north korea for human rights abuses at the start. i had a meeting with the south korean department, blinken said pyongyang continues to commit abuses against citizens. a market change from jonah from the trump administration. >> [indiscernible] >> the world health organization

says that the astrazeneca vaccine should continue to be administered as the benefits outweigh the risk. reports of blood clots prompted more than a dozen companies to pause immunizations, but who officials a pulmonary data does not show any association between those blood clots in the vaccine. italy and france have indicated they will live to suspensions if the shot is deemed safe. japan's prime minister is seeking to let the state of emergency of the tokyo region as scheduled this sunday. he will make a decision later on thursday after a conversation with an expert panel. that decision could come despite tokyo reporting 409 cases, the highest for a month. this as measures would be a symbolic gesture and days before the lymph exports really begin to japan. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn.

this is bloomberg. haidi: still ahead, more reaction to the fed. our guest joining us with their reaction, plus impact on global markets. jp morgan says -oue next. and is bloomberg. ♪

>> i would like to start by noting it has been a full year since the pandemic arrived with force on our shores. the economic fallout has been a real and widespread, but with the benefit of perspective we can say some of the very worst economic outcomes have been avoided, and while we welcome positive developments, no one should be complacent. the economic recovery remains uneven and far from complete. the high level of job was as has been severe for lower wage workers in the service sector and for african-americans and hispanics, and the path i had remains uncertain. the state of the economy and two

or three years is highly uncertain. we are clearly on a good path with cases coming down, as i mentioned, but we are not done and i would hate to see us take our eye off the ball before the job is done. we would like to see inflation run moderately about 2% for some time, and we have resisted generally the temptation to try to quantify that. we will begin to make faster progress on about spending and labor markets and inflation as the year goes on because of the progress with vaccines, because of split -- fiscal support we are getting. fiscal policy overall will have helped us to avoid much of the scarring we were very concerned about at the beginning. shery: highlights from jerome powell to remarks earlier. get insight on the decision with jp morgan global research chair joyce chang. always great having you want.

chair powell did not seem that much concerned about the rising yields, the bond selloff. what do you make of his comments? >> first of all, u.s. core inflation has failed to rise here. even though we are seeing higher inflation, it is important to point out core inflation has not taken the rise here. the other thing is the fed messaging has been clear for a long time. they anticipated this by moving to average inflation targeting. that they think that there will be an overshoot, and when you look at what happened with the move into bond yields, buds are expected to rise another 100 basis points before you have to question equity premiums, so we are comfortable staying with the call to u.s. equities, given the stage we are at and the recovery cycle. that we have seen very strong quarters of growth i had. looking at 9.5% in the second quarter of the year for the

united states, over 8% in the third quarter of the year as well, so the fed messaging has been clear. you will cure talk before the end of the year, but we have not changed our call on the fed hike . we see that late 2023, early 2024, and we still think the markets here on the equity side still have momentum. shery: where does this put us with the dollar? we are seeing shorts fading, at this chart on bloomberg showing us that. >> what has been hardest hit here. emerging markets, local markets in particular. when we look at the numbers we think there is a 1% increase and a 2% strengthening in the dollar. everybody has -- a weaker dollar environment, but the emerging-market effect is feeling that affect the most.

at the same time we are seeing a slowdown in china numbers coming out at the same time the u.s. is rising, so it is seen as more of a story of u.s. exceptionalism, and emerging markets have been the asset class at the hardest in the last couple of weeks. haidi: we continue to talk about the unusual strength seen in this recovery. i always think about the fact that the pandemic is unlike a typical economic shock. what are some of the downside of risks that may not play out in the way that economists are expecting them to. -- two? >> we put out a report on unappointed situations. there was a disparity. women have been disproportionately affected, and inequality is rising. because of the service sector shock that is one reason we hope the inflation -- would come back

quickly in a way that is sustainable. women bear the responsibility for child care and they also have jobs concentrated in the service sectors. you even see a widening of the gender gap. that is one of the long-term consequences. minority communities, women have been more impacted. low income groups have suffered more than higher income groups, who cannot do teleworking as well. haidi: that terrible building out of already existing structural inequalities. i went to quickly talk about some of the investment ideas you have around what we see going on at the moment. if you assume a commodity super cycle, what does that mean for how you are positioned in the commodities and energy space? >> we have moved our forecast for next year, and we are overweight commodities right now. we also think value typical's

will continue to do well, financials, and the energy sector as well. [indiscernible] we thought they might make some change there, but commodities -- i do not know if i would call it a super cycle but i would call it an up cycle, so we still see value there. some of these sectors have lacked with the recovery it with financials and commodities. those are two places where positioning still has room to further up. shery: veering away from markets, a very important topic right now in the u.s. has been rising anti-asian sentiment and actions, violence as well, and i note jamie dimon wrote a memo today about this. you have been active in the field working toward equality. tell us what you were doing. >> if you take a look at public

opinion polls, surveys put out by pew research, you can see the rise in anti-china sentiment, which has played out and made its way into local communities as well, not just on china policy but effecting the asian-pacific islander community. there is a strong statement put out that since last summer jp morgan has put out very clear targets that they would do quantified, and investments in local amenities, $30 million targeted at small businesses, affordable housing, looking at underserved areas. we had a lot of meetings today on the what we can do to address this, so part of this starts with education, working with some of the local, civil rights,

and institutions in the community, but looking at some of the unity based approaches we can take. haidi: joyce chang, great to have you with us. coming up, the benefits outweigh the risks. astrazeneca's vaccine gets the backing of the world health organization a bit of years side effects. this is bloomberg. ♪

haidi: the world health organization says the benefits of astrazeneca's covid-19 vaccine outweigh the risk. the second health authority to endorse the shot in as many days. our health care reporter joins us now. with any drug you are looking at, the risk-benefit analysis, so what does this tell us about the astrazeneca shot? >> what we know is regulators,

including at the world health organization at the european medicine agency is taking this very seriously. they have come back through data and looked very closely to see if there is a definitive danger that comes from getting this vaccination. you have to remember that it is very important that you are not actually making people sick, because a vaccine is supposed to prevent any type of illness. these are people who do not have a condition. normally when we talk about drugs you are trying to fight an infection, fight cancer, you have got something bad happening, so you have the benefit of the product coming. at this case you do not want to give anything to someone that will make them worse off. they have gone through it all, they do believe it is safe and effective, and they are really trying to reassure people that this is something that will bring you benefits and will not cause you harm. shery: we just had japan recommending the emergency on march 4, saying they will

strengthen monitoring of the coronavirus variants. those are really wreaking havoc in the u.s. as well. >> they are appearing everywhere in the u.s.. we have more than 30% of our cases are coming from the b117 variant that came out of the you kate the issue is that antibodies you get from being infected or vaccinated do appear to be affected against that variant. the bigger concern is the one from south africa, where we have seen it is able to update some of the protection that comes naturally or through vaccinations. those numbers are still low, as well as the variant out of brazil and what they are watching for very closely is whether we see an uptick in cases as these variants spread more quickly and make more people sick before we get people protected or if we do see another evolution of the virus, and that is what we have not seen yet, the thing people are afraid of. shery: michelle cortez.

km pg chief economist constance hunter joins us to discuss the fed and whether there is a disconnect within the markets. this is bloomberg. ♪

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haidi: jay powell pushback against inflation worries as the fed kept rates on hold and what still singles rate staying put through 2023. seven out of 18 officials putting higher rates earlier. we asked the former new york fed president for his view on the past of future rate hikes. >> we do not have a lot of experience with a cover is from pandemics and we do not have a lot of experience with recovery from this kind of monetary and fiscal policy behind it. it is possible it could happen faster than what the fed rejected. the baseline view of the fed's

note rate hike through 2023, even though there are a few people who think it should come sooner. >> if you were the fed at that last meeting, what would you be pushing for? what would you be projecting? >> i would be in the camp of it happening quicker. this is unprecedented in terms of how the economy will bounce back, openly as we open up the economy later this year and with monetary policy providing support, the economy will be strong. the key issue is the fed is following a new framework in terms of how it connects monetary policy. they are basically saying they will not raise rates until we reach maximum sustainable unemployment, inflation is at 2% , and they think inflation will rise above 2% for some time. the fed said we will be slow to

start the process. that is why tightening will not begin for quite a while. when they do finally start, they are going to have to do a lot, because they will have to catch up, because when we start to tighten monetary policy rates will be really low relative to where they have to go. >> of course, the bond market, in spite of all of the things jay powell said today at the things he said recently that already reinforces -- they are looking for anything. more inflation staying higher longer, especially with unemployment expected to fall, huge stimulus in the wings, so does the bond market may be have it more right, and would you agree with it? >> i think the bond market is reacting to the fact that the outlook is improving and there is a $1.9 trillion fiscal stimulus package being enacted. the rise and bond yield is still pretty modest.

it is taking the 10-year treasury yield up to about 1.6%, but that is not a high rate especially given where the fed exit will lead that. they take a neutral short-term interest rate as to percent to 3%. 10-year treasury yield's will ultimately go to 2% or higher. it is pretty modest. shery: the former president of the federal reserve bank of new york and a bloomberg opinion: this. we are less than half an hour away from the open in south korea and japan. let's turn to sophie. sophie: it to bond of the pressure, 10-year gilts off like four basis points. treasury futures taking lower, this after the fed move we saw it catch yields, this as the fed maintains its w stands at wells fargo they are still seeing moves higher in u.s. yields, the tenured could cross 175 in the coming weeks and reach 2% by mid

here. when it comes to the currency space, the aussie dollar outperforming the kiwi dollar, despite the gdp report we got up from new zealand which may signal a double-dip recession is not in it for the economy. switching on the board, we are seeing swings for stocks, activities, the upshur market, little change of kiwi stocks being lower, but travel related names climbing above sitting at wellington on prospects of [indiscernible] being agreed upon between the two countries did nikkei futures moving to the upside as japan 20 is government saying it would likely lift the tokyo emergency by march 21 as planned, and s&p minis and getting ground after we saw u.s. stocks reach new heights yesterday, haidi. haidi: let's get more of the impact on the fed decision. the further the forecast of diversion of it markets the more

difficult of mitigating policy we will see. joining us now is constan hunter. i would you throughout this chart that shows relief in the markets despite pre-consistent messaging from fed chair powell as the outlook for fed policy are still praising it earlier tightening by the end of this year. what is this discordance that we continue to see, and as you say, jay powell really having to thread the needle on his messaging? >> very much show, and i think bill dudley was spot on. it is our anticipation that by the time we get to the next summary of economic projections, we will see the central tendency to be for a rate hike in 2023, because we anticipate the economy is going to continue to perform strongly, and that while we have people continue to be

vaccinated in the u.s., we are going to see more and more things open up and more activity underway. i think it makes sense for the fed to be cautious and forecasters to be conscious -- cautious. as one of your guests was noting, the other strands of the virus are extremely pernicious. and as clawed its way back, a double-dip recession in new zealand, so caution on part of the fed -- fed even though it is important it is that with the markets will get ahead of the fed, so the fed says it is going to wait before they see -- which is the evidence before they react, but it is likely we will see good evidence in the coming months. haidi: i am curious about the behavior aspect of this. it were talking earlier. you said you got your first vaccine today, congratulations. does it make you feel like you can go out and dine, spend, you

are comfortable going to a theme, jumping on a plane. do you think the bounceback for confidence in the consumer will be that quick and translate to the labor market recovery as well? >> i do. i think people are planning social events for the spring and summer. i am on the board of a charity looking, do we have a live event this fall and we are leaning toward yes, and we should start booking the menu now, because of venues will be kind of hard to come by by the time september or october rolls around, so i absolutely get the sense from other people i know that are vaccinated that they are planning to amp up there activity, and really it just depends on how these other strains of the virus interact with the vaccine. how much vaccine what we have globally? when i turned to my claimants --

clients, we have a supply-chain issue in asia or hungary, so how the rest of the world responds and how quickly we get vaccinated globally is of course going to impact the u.s. and global economy. shery: a whole year of it being stuck at home. i am looking forward to the summer as well, but i do have to wonder despite all of the demand out there and spending we might what does that mean for the job markets? this chart shows we are really not at those pre-pandemic levels. labor force participation has been trending lower. >> that is a great point, and one of the things powell said today is we are seeing jobs below the pre-pandemic level. that will not come back simultaneously. let's suppose that takes two years to come back, you're looking at the end of 2022, the beginning of 2023, and that

would be a substantial pace for growth. we are expecting close to 6 million jobs to come back this year, but what you need to understand is there are two different job markets. if you get a work for home -- from home, at the employment rate is 3.5%. if you have to work at your job site, and to get employment rate is 7.9% rate i am sorry, 7.6 percent if you have to work at your job site. two very different labor markets. you will start to see that impact wages in these different types of jobs very differently. some firms will see tight labor conditions noted other firms, less so. shery: that is interesting. it before we let you go, do you have any idea what is going to happen to the federal u.s. capitol release or banks, because we did not get any clarity on that. >> know, and there are interesting arguments on both sides of that and it dated that

was just released from credit suisse suggesting this is a nonevent others in the market feel like it is a bigger event. the fed obviously it's going to take all of that into consideration and is reviewing it and will be making an announcement in the next few days. i tend to fall on the cap that it is not quite as big of an event, and this will have issues on how they are managing these different tools. it would seem to meet the sooner they can exit from this tool without having a minimal effect on the economy, the better, because we do want to get back from some -- two some state of normal monetary policy. shery: constant under, great to have your thoughts. the pob is on tap today along with indonesia and taiwan. we are also watching the boj

tomorrow and it releases the results of its month-long policy review. you can also turn to bloomberg. for more on our schedule makes coverage, go to [indiscernible] for commentary from our bloomberg editors. this is bloomberg. ♪

>> this is "daybreak: asia their

the white house press secretary it says former president donald trump there are some responsibly for threats of violence against asian americans during the pandemic. he called out what she described as trump's damaging rhetoric about the virus after a series of shootings in the atlanta area in which a white man allegedly killed eight people, including six women of asian descent. two big u.s. banks have warned employees against racism after the shooting incident. the jp morgan ceo in a memo to staff that racist acts cannot and will not be tolerated. bank of america told employees at that it does not tolerate discrimination in any form. the atlanta area shootings were just the latest in a series of attacks against of the asian community. bmr as ousted the defect a leader. the leader has been charged with bribery, preaching and anticorruption law. she could face up to 15 years in prison. the military seized power in a

coup d'etat. the latest acquisition was announced on a national broadcast. washington is moved to bar more chinese telcos with the federal medications commission adding two companies to it's getting risk. the agency told comedies to prove they are not linked to the chinese government. the government's party also issued subpoenas for multiple chinese carriers as part of another security most. it is unclear which companies these are. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: the u.s. diplomatic mission in asia continues with secretary of state antony blinken and defense secretary austin said to meet south korea's president in seoul later today. for analysis, let's bring it our vice president of the korea economic institute of america. mark, great to have you with us.

how important with these talks be for south korea? >> very important, both for south korea and japan. it is not a coincidence secretary blinken and austin chose tokyo and seoul to be the first ops -- stops. the three countries working together is important. shery: we heard secretary blinken talking about north korea's human rights abuses, something even president moon jae-in as not made a big deal of. what we see a gap in understanding between these two sides? >> i do not believe so. seoul and washington are a very close coordination. i'm sure they spoke at some length. the biden administration is going to put human rights back on the agenda more than the trump administration to. there is no reason we cannot talk about human rights in north

korea along with other issues. haidi: where do you see as areas of national collaboration in these talks? >> the two sides need to cooperate to plan how to push north korea. we understand the u.s. as try to reach out and have not received a response. even while waiting for north korea, it is important for washington and seoul to work out between the two of them quietly out of respond to any initiatives north korea does date, either a negative provocation or diplomatic outreach and there was a lot to talk about before that happens. haidi: we have also heard pyongyang has heard there will be no more talks in the style of the trump-kim summit unless the u.s. drops its hostile policy. went do you see taking shape in terms of the biden administration's way of dealing with pyongyang? >> is going to be difficult

because the ball is in north korea's court. it cannot be a one-sided gesture. what the biden administration can do is to make clear to north korea there are constructive talks. they can probably build on the summit. there are foundations to begin with, and talks are the only way to move forward. it is a matter of trying to set the stage. they have been waiting for north korea to decide it is time to start talking. shery: why would that change anything? we have seen democratic administrations, republican administrations coming in, and nothing is changed with north korea. >> i think the thing that has changed is their economic situation. north korea is in deep trouble, and they admit that. kim jong-un as said so. north korea problem is not their nuclear weapons, it is there economy, and they do need help to move forward. that will increase incentives

for both sides to get together. they should stop their cyber criminality and improve their human rights records, but north korea needs help and international acceptance, so there are reasons to god. it is the same reason the trump administration was able to start talks. we just did to get the restart with the biden administration. shery: the trump administration and south korean government largely saw eye to eye on how to deal with north korea but they have their issues as well especially when it came is to the fivefold increase for hosting troops in south korea. where are we in this bilateral relationship. how much damage and how much advantage have been gained since the trump dates and now? >> i think there was some mistrust that developed during the trump administration. donald trump is already -- always interested in two things, a trade balance, he always

thought the u.s. should have a surplus. burden sharing, he thought ally should be more, it showed two areas where there were a high list of countries to talk about. trump tried to do things with south korea in a transaction away. the biden administration will be much more in trying to rebuild traditional lines and a network the question is how will south korea fit into the network the u.s. is trying to develop in asia-pacific. haidi: do you see a cohesive approach when it comes to this united front that washington is pushing in the indo pacific, particularly against the rise of china but also the ability of tokyo and seoul to work together , because as you say the threat of north korea for japan is directly and all not be underestimated. >> that is right, americans tend to underestimate the threat

america -- north korea posit you to pay. they had missiles fly directly over japan. it is within reach, so this is a serious problem. if it is not a question of choosing sides. south korean and japanese allies do not need to do is or the u.s.. all countries will work with japan if they can, and all countries will push back with what china is doing if it affects national security or national interest. there are areas where we could cooperate with china, areas to push back on china, areas to agree among market economies. it will be complex, and countries will join alliances based upon with the topics are. i do not think it will be a set group of countries. countries will align themselves based on issues. the good news for tokyo and seoul, a lot of issues are ones we have a common interest on.

haidi: mark tokola, we appreciate your time. we are counting down to the start of trading in south korea in under 10 minutes. plenty more ahead. this is bloomberg. ♪

haidi: let's get a check of headlines this are.

apple is what else do i bets as early as april after a stay at home sales booze. the company is expecting to refresh its line, adding a better processor and improved cameras while maintaining design and dimensions. morgan stanley truly is what the clients will have access to ownership of bitcoin, the first of six major wall street lenders to offer cryptocurrency access to its customers. at least $2 million of assets held by the bank and an aggressive risk tolerance will be allowed to invest in the funds. there may be changes at a finance business, the company is in talks to so it's portfolio to japan. it was once a key lender to the country's industry but announced it was leaving the business after a series of trading scandals. shery: a confrontation that pitted one of japan's will be as corporate giants against two

overseas edge funds will come to a head later. shareholders of toshiba will gather for an unprecedented vote to good test the country's commitment to better corporate governance. we have our stocks reported. why is this being so closely watched? >> we have very well-known edge funds, two of them, coming after toshiba, which is rare in itself , and these two hedge funds have two very separate agendas. what is about capital spending, and the other more closely watched is the one raised by the company known for keeping secretive strategies. this is about a proposal to do a third-party investigation whether votes were properly counted. so far it has dismissed the

necessity to do another investigation after they did one on their own, but how the vote turns out for this one is being closely watched. haidi: what kind of results are being expected? >> usually it is normally the case these types of votes are a win for the management, but for this one, we really do not know which way the vote is going to go, so that is another reason it is being so closely watched. if fsm outdoes when -- win, it will have -- four companies in japan. haidi: we are continuing to watch that story. let's look at other stops we are watching. sophie: in tokyo watching japanese medical testing companies, which may move on in his report, the a2 group will be

analyzing covid variants two of the government be about monitoring of the virus, and switching of the board, over in seoul, taking a look at sk bioscience trading view, in the wake of the country suspending doses of astrazeneca vaccine. chip stopped staying on watch after samsung shortage warning, which underscored surprise concerns. keeping an eye on --, planning its first dollar bond as korean internet firm seek to expand. shery: china says it does not have high expectations for talks in alaska, and both sides set a low bar. we premiered the meeting in around -- premier the meeting in around 30 minutes. the market opens in tokyo and seoul are next. this is bloomberg. ♪

shery: welcome to "daybreak: asia." i am shery ahn. haidi: i am haidi stroud-watts. asia's major markets have just been portrayed. asian benchmarks are centered on taking cues from kiwi stocks. this is after jay powell maintained establishment. washington is setting talks with beijing and alaska. after banning more chinese

telecom companies over security risk. morgan is for astrazeneca's vaccine after world health organization gives it shot there step of a brutal. japan is said to lift the state of emergency around tokyo this monday. shery: japan and korea getting online. let's get to sophie kamaruddin. sophie: japan, the government is closer to lifting the emergency despite the pickup we are seeing affections did the upside for tokyo stocks, nikkei225 adding .8 of 1% while the yen is holding below nine following the dumbest review on friday. -- seeing range bounds ahead of that. flipping the board, and south korea, the president is set to meet secretary of state antony blinken this afternoon. the kospi gaining ahead of that up of 1%, and samsung shares reversing losses we saw yesterday as it warned of a shortage when it comes to semi

conductor supply. keeping an eye on asian apple suppliers today on speculation new ipads are to be announced. switching out the board to check in on sk bioscience to make its trading w after its ipo shared story. even as we see countries pull back dosing astrazeneca vaccines, which sk bioscience is the manufacturing partner for. switching on the board to see what is happening to the markets in the activities. shares fluctuating in sydney, kiwi stocks edging lower, but travel gains are rising on prospects that a quarantine travel quarter may be opened up between the does countries. we did get the gdp report from new zealand, down by surprise but a mild date to the kiwi dollar, holding about 72 in the wake of that. switching on the board to see what is going on after the federal biggest of a stance, we are seeing u.s. e-mini's

gaining, nesta futures rising a quarter of 1% and cash yields nudge higher, holding above 165 earlier in the asian session. the u.s. 530 curve continues to steepen, this after it came to the widest level since 2014, and wells fargo following the fed update, they anticipate u.s. 10 year yields will climb to 175 in the coming weeks, reaching 2% on improving gdp prospects for the u.s. economy. haidi: let's get market developments -- analysis. mahjabeen zaman joins us now. taking a look at a head scratching situation when it comes to central-bank policy versus the discordance we see in the markets. it seems the best interest rate policy is to not have one at all, and we have a lot of central banks globally, trading

is data-dependent. we will see whether expectations are elected and it is just reflation. what was your take away from what jay powell said from that? >> what we saw overnight, it was lesser that what the market was expecting as we saw a pullback in yields, but having said that, what we would be seeing beyond this meeting, we have got upgraded forecasts on inflation and growth. we expect this to play out next month. 's meeting will be key, because then they will talk about the look through the inflation numbers, and at the same time look at gdp growth on the back of fiscal stimulus checks that have been paid out. for us, the june meeting is key. we have a similar projection as the fed and to stronger economic

data coming out of the u.s. on the back of strong recovery, so what we are expecting is to see a change of tone, potentially in the june meeting, and then they might sort of signal a rewrite of the entire statement followed by revising their inflation and growth forecasts on the upside. that is when we will potentially see a signal and moving on, potential october, and announcement of tapering in october. haidi: in terms of where that leaves the bond markets, at what point do we see investors having to believe in the fed, the rba when they state rates are staying exactly where we are until we hit this inflation mandate. the fed, the. still showing 2023 , but futures tightening from

potentially before the end of this year. >> that is true. i think it is a tug-of-war between central banks and markets. with the rba particularly, in the last week or two we have heard repeated commentary saying the same thing, consistent messaging. rates are not going up for an extended period of time. any hints of tightening, we are expecting more easy policy i had for the rba. we are expecting the november rollover of that bond to be rolled over to november. going forward as you said, the u.s. fed policy probably will take a head start in terms of raising rates when they do, potentially in 2023, while the rest will play follow-up when

their economies come to par with matching pre-covid levels in terms of gdp and other measures. shery: what does it mean for equity markets, because you have higher growth forecasts, at least central banks telling you he will not be doing anything when it comes to tapering? is it just up from here then? >> it looks like up up and away from here to be honest. we have seen more of a tug-of-war between the rotation over the past weeks in line with the fact that yields are going to move higher, and yields moving higher because it is good news, good data, so we are seeing that move from stay at to reopening stocks, and that is a fair movement to see, and similarly what we are also doing is getting on the bandwagon, moving into our value place, because we are clear the pe's

for growth stocks are exceptionally high, and if we do see them moving higher than the future cash goes up will get impacted on the downside. shery: what do you like in the bond space given that as we establish we are seeing this rate selloff given that rate growth is recovering? >> with the bond space we are very technical. toward the end of last year we became underweight, investment grade u.s. dollar bonds. currently at the u.s. dollar space we like asian hi yields, particularly china credit. there is a huge pickup and spreads, well over 200 basis points there, a value that we see. in the aussie dollar space, we are very selective and what we are focusing on our short duration bonds, and within that

space is the potential for [indiscernible] and very attractive yields as well. shery: mahjabeen zaman, it was great talking with you. coming up, the u.s. cracks on chinese wireless carriers just ahead of the first and meeting between officials from washington and beijing. plus, analysis on what to expect from that alaska meeting when we are joined by peter smith's senior fellow jacob kierkegaard. this is a bluebird. ♪ -- bloomberg. ♪

shery: look at the japanese topix now above 2000 for the first time since may 1991. we are talking about tech and real estate leading gains. japanese stocks have a lot going

for them today. we did get a japan officially listing the tokyo area -- lifting the tokyo area emergency. we had a devilish fed, not to mention the boj a started meeting today. we are expecting that wrap-up tomorrow and more details of how they review their framework. let's get to vonnie quinn with first world headlines. >> u.s. secretary of state antony blinken criticizes north korea for human rights abuses at the start of his meeting with seoul. lincoln said pyongyang continues to commit abuses against citizens. his comments mark a change in the trump administration, who is north korea policies largely avoided the subject. >> [indiscernible] widespread abuse against its own people. [indiscernible] >> myanmar as ousted the defect

a leader -- myanmar martha roby as ousted defect a leader could face to 15 years in prison. the military seized power in february at a previously filed for other charges. the latest accusations announced in an international broadcast. the white house press secretary says former president donald trump bears some responsibility for threats of violence against asian americans during the pandemic. she called out what she described as structurally as damaging rhetoric after a series of shootings in the atlanta area in which a white man killed a people, including six divisions and. two banks have warned their employers against racism. jp morgan ceo says racist acts cannot and will not be tolerated. make of america told employees at does not tolerate discrimination in any form. the lenten -- atlanta area

shootings is just a series that's the latest in a series of attacks against the asian community. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: u.s. regulars have taken the steps toward barring china unicom an dcomnet saying dates of -- process a security risk. he was officials are saying not to expect any breakthrough from the first imprinting meeting between u.s. and chinese officials in alaska next week. we are joined by our grade and china executive editor from beijing. we haven't beijing talking about the high-level strategic dialogues going with the u.s., but now it seems they have matched that low expectation line. we are hearing from the china state tv saying they do not have high expectations. what is the deal here? >> i think the deal is there are two many problems -- too many

problems between these countries to be solved. you sought the action by the fcc, the obvious action against huawei, trump trade's actions against bytedance and tiktok. it would be naive to think these gentlemen are going to sit down for one or two days at resolve all of those things. shery: there has been reporting suggesting this will be a forum where they could request the rollback of some of the trump era policies against china. is that an ambitious ask? >> i think that is the ultimate goal that janet wants to achieve is to at those tariffs will back , do have some of these restrictions taken away. i do not think that is definitely not low hanging fruit. low hanging fruit is we have a spat between the two countries between journalist visas.

both sides of expressed a willingness to resolve that. there is also the chinese conflict in houston, the american consulate was closed during the trump administration, i think both sides want to see it reopened. haidi: our greatest china executive editor. coming up next, japan is moving to lift the emergency and the joke your region even as case numbers continued to rise. -- the tokyo region even as case numbers continued to rise. that is next. this is bloomberg. ♪

haidi: let's look at the asian suppliers, astrazeneca trading higher in the early part of the asian session today after the w.h.o. came out to back astrazeneca over its covid-19 vaccine, saying the benefits outweigh the risks. we did see decisions to stop the rollout of the astrazeneca

vaccine after reports of blood clots and some people who had received those vaccinations. more than one dozen european union countries paused administration, threatening to potential pace of the rollout of the vaccine. we are also expecting the european medicines agency to provide their definitive assessment on thursday. italy and france think they would lift their suspension if the vaccine is safe. upside on sk biosciences, up by almost 2%. japan's prime ministers as a final decision on lifting the state of emergency in tokyo will be made in the coming hours after conversations with an expert panel. pandemic related restrictions in the japanese capital have been in place for more than two months. let's get more from elizabeth reynolds. the drumbeat continues toward summer olympics.

you can understand why they want to resume some sense of normality in tokyo, but this is coming as a virus cases continue to stay high. >> as you said, prime minister suga pointed to the fall and infection number since the emergency was declared in january. the peak in january it was over 2500 people per day. the figure for yesterday was about 400. if you look at other conversations, there are other reasons for lifting the emergency. the effect of this measure as actually dulled extremely during the last few weeks. people are beginning to defy restrictions not to go out and get them in bars, and that is one reason case numbers have been creeping up again there is a question over effectiveness. finally we have this olympic torch relay, starting on march 25, and this would create the kind of optimistic atmosphere that anybody would want in the

run-up to the olympics in july. shery: how far along is japan in its efforts? >> japan is very much behind many western countries in this respect. the number yesterday was 420,000 of japan julius 100 6 million avid windows of the vaccine. it is very early data in that respect, and we cannot expect a significant number of people do have been vaccinated essentially before the olympics start, so given that we do not have a full vaccination program in progress get, and emergency measures are not necessarily effective this leaves a big question mark as to how to control the virus in the coming months. shery: is about reynolds and tokyo.

wells fargo nco is extremely bullish on the pandemic, seeing a strong rebound and heightened consumer demand in the second effort. the lender looking to rush workers back into the office. she told bloomberg about his plans with the bank to thousand employees still working remotely. >> right that we have 90% of our branches open. we headed down to around 70% at the peak of the crisis. we are back to 90. it we think about bringing our employees back, i am a firm believer that really great things do come from people being together, but first and foremost , this is a health care issue. it is serious. i am personally not interested in rushing people back to the office because i think that is the right thing to do. it we will bring people back when it is safe and we will give people notice. certainly helping with the increase in vaccinations it is sometime around the summer, toward the end of the summer

when we can get back to life as normal, but we will play it by ear, the city, state by state, and we will make those decisions when we think it is a. that is the most important thing at all. >> we are seeing the economy about to take off your, because there is been monetary and school stimulus benefiting the banks, including burbank across the board. at the same time, when you came to wells fargo last fall, you had a hand tied behind your back with the asset cap by the fed. when you think you will get rid of that? >> everyone asked me that question that i wish i could be more specific. we know the work we have got to do to get the cap lifted. we are doing it, and i am confident we will get the work done. in the meantime, we have an amazing franchise. we come into work every day and serve our customers extraordinarily well, and it is the dedication of all of my partners and teammates around the country that do it, so we will continue to work through

everything that we need to work through, and when we can grow the asset base of the company we will do it. >> we are seeing remarkable projections on gdp growth in 2021, 2022. what are you looking at in terms of overall growth in elgin that transport -- translate into business for wells fargo. >> we are predominantly a u.s. bank, and we live and breathe by the success of u.s. consumer, small businesses, middle-market companies and larger companies as well. to the extent that they are doing well, we are doing well and when they are not doing what we will not do so well. what we see today is clearly remarkable progress with the rollout of the vaccines, but consumer demand is extremely high over the last couple of weeks. we like others have seen material increases in consumer spending, and that is before the stimulus checks have arrived, which of the deposits are just arriving today, so you put all

of those things together plus ongoing support of the fed, and we are really bullish in terms of what the third and fourth quarters could look like. shery: the wells fargo ceo speaking to david westin. here is a check of latest headlines. disney plays to reopen its two california theme parks on april 30, a key step in its retainment and recovery for the pandemic, and it plans to bring back more than 10,000 furloughed employees for the reopening. disneyland and disney california adventure avenue been close for more than one year and they are among the last of the company's properties to welcome back customers. >> we are thrilled with the response we are seeing from our guests in terms of future reservations and intent to come back to our parks. it is a function of two things. confidence that we are seeing light at the end of the tunnel for the pandemic, but also tremendous trust and our brand.

shery: a billionaire chairman as step down for the board will interesting control of the growing egress how to be -- china's third richest man since founding the company will focus more on longer-term initiatives will be replaced by lei chen. apple is said to be announcing new ipads as early as april after a stay at home sales boost. the company is expected to refresh its line, adding a better processor and improved cameras, while maintaining design and dimensions. the ipad generated $8.4 billion in revenue for apple during the key quarter of 2020, the most since 2014. i look at apple supplies across asia, we are seeing rising for a third consecutive position, samsung sci seeing its best day

in a week, although japan julius display is bucking the trend we see in tokyo as we continue to see getting markets. the topics not rising above 2000 for the first time since 1991. it are talking about tech and real estate. the kospi is getting 1%, reversing yesterday's losses. so watching out for bonds in south korea. the bok just moved to reduce debt issuance. the asx 200 down .25%. china says it does not have high expectations for talks in alaska, and besides have set a low bar. a preview with jacob kierkegaard i had -- ahead. this is bloomberg. ♪

♪ haidi: labor market data just out from australia, the bureau statistic numbers suggesting a full-time employment change of just over 89,000 jobs added to the economy. part-time employment, a contraction of 500 jobs there. we are seeing participation rate unchanged at 66 point 1%, unemployment rate at 5.8%. that is a huge decline of 3.4%,

much, much better and a picture of a very much recovering labor market. shery: we are also following what is happening in south korea. we are seeing u.s. officials now walking into the foreign ministry. secretary of state antony blinken and u.s. defense secretary lloyd austin just passed through wind are supposed to meet with their south korean counterparts. we will be watching closely and bring you any more headlines we have lester to sophie kamaruddin to check markets now. we have seen south korea and japan gaining ground, what should we watch out for? sophie: we have a mixed picture when it comes to asian share markets this morning. australian shares lower, weighted by banks, tech shares falling, but japanese shares are leading gains, the topics now above 2000, best since may 1991 of the biggest boost for the benchmark. japanese stocks gaining, you can

see on the terminal, the white and blue lines, outpacing the taiex. nomura is expecting business sentiment in japan despite what we are seeing with virus cases as well as the state of emergency. they say it is supported by a recovery in exports and industrial production and are watching to see if companies boost capital spending. dollar extending losses at a two-week low while emerging currencies are gaining ground this morning. perhaps fears are being reined in as some strategists say emerging economies are better positioned to withstand outflows this time around. we will get clues on the outlook for the indonesian economy with its rate decision to out, no change expected there. and with recovery picking up across the globe, we have the yen trading above 85 in the korean you want is leading asia so far -- korean yuan leading

asia, trading at its best level since february 10. shery: sophie, let's turn to our top geopolitical news. china set a low bar for upcoming talks in alaska. state media is were working beijing's expectations are "not too high," but the dow jones is reporting beijing plans to press washington to reverse many trump-era policies targeting china. let's talk to jacob kirkegaard, nonresident senior fellow for the peterson institute of economics. jacob, great to have you on the show. the question is that they can necessarily ask, but will they get the easing of restrictions, that is the question? pickup: dow, they will not. i don't think we should expect anything much to come out of this meeting.

the order by the binding administration is still ongoing. i couldn't imagine that they would signal, following a meeting with china, that they would lift any trade-related sanctions and others the trump administration put in place. this is much too early for that. it is also quite noteworthy that the set of fairly elaborate choreography that has taken place in the run-up to this meeting, where clearly the biden administration has been going out of their way to signal to china that they have a lot of friends in the region and around the world. they are meeting with their asian allies, they have coordinated with the european union, etc. so this is not the kind of bilateral u.s.-china meeting you perhaps saw during the trump administration bid this is basically the united states with all its allies trying to confront china, and raise what i would expect would be all the difficult issues, cyber, hong

kong, we can go down the list. shery: if you are the chinese leaders walking into this meeting with their u.s. counterparts, what do you hope to get? jacob: i think they will also be saying what their red lines are for the biden administration. they will say, sinjun is our internal laughter, hong kong is our internal matter, and we continue to hold our right to do what me we want -- what we may want to do in the future on taiwan. so the two administrations are very much going to set out red lines for each other and then we can "take it from there," but i don't think we should be under any illusion that this is going to remain a confrontational relationship. the biden administration is going to be under scrutiny from

republicans in congress. it was a significant issue during the election campaign, republicans accusing him of being in league, or a sellout to china. he is what -- he is going to want to signal, for his domestic opinion, that he is not going to do that. but that is also the case for the chinese leadership, they have to show that they are not week invasive -- that they are not weak in facing up to the biden administration. haidi: i look at the two major sticking points, and they are long-term strategic areas where i find it hard to find any point of compromise between washington and beijing. one of them is the beijing belief in its sovereignty and taiwan. and the other is tech. do think when it comes to beijing's tech, the issue of national security distrust,

that there could be progress there? jacob: in the short term, the answer is no. again, the biden administration signaled is going to take its time, it is going to do a thorough review of the u.s.-china relations. that would include everything that relates to tech, and they have signaled clearly they're going to remain, on this issue, quite hawkish. so on these bigger come along-term strategic issues, i don't expect there will be much movement. the best we can hope for is that there are some sort of understanding emerging on some of the other outstanding issues where china and the elected states have previously been able to collaborate. a big one that i am sure we will hear more about is undoubtedly north korea. and of course, there is the issue of climate change where, very clearly, there is a

vicarious signal that climate change is one of those signals were the u.s. and china can work together, even if it has confrontations on many other policy areas. haidi: in terms of the tariffs, because there is ambition for those to be rolled back, are they a substantial concern for the chinese economy at the moment, given the robustness we have seen in the economic recovery? jacob: no. fundamentally, the chinese economy is recovering on the back of a successful containment, suppression of covid, and a significant domestic policy stimulus. of course, it would help if you had a removal of these tariffs. but it is not, as you say, an existential issue that, in my

opinion, matches a great deal for where the near-term trajectory of the chinese economy lies. that is basically determined by the scale and composition of domestic stimulus. shery: jacob, and a sort of unrelated but sort of related issue, china has announced trials for two canadians detained in canada, two years after their initial detention. is this timing, is it political here? jacob: first of all, it is an outrage it has taken two years for these, in all probability, innocent people to be put on something the chinese government calls trial. but i would also say that there is nothing left to chance here. this is a clear signal, and my opinion, by the chinese authorities to perhaps get rid of a sticking point between

china and one of america's closest allies, namely canada. so perhaps the recognition that, we are not going to get anywhere in the short term in the broader u.s.-china relationship, perhaps, from a chinese perspective, we can move to put some of the sticking points between ourselves and the major allies of the indicted states, canada is certainly one of those, you could think of australia and the trade relations, frictions there would be another case, that may be a strategy pursued by beijing in the very short term. haidi: always great to have you, jacob, peterson institute nonresident fellow jacob kirkegaard. chinese institutes listed in the united states are looking to in fact -- to expand their investor base as relations deteriorate between washington and beijing. a secondary listing in hong kong

has raised just over $3 billion after surpassing sales of 95 million shares at $252 hong kong apiece. our markets reporter julia ferretti is in hong kong. this is a good thing, for hong kong, another feather in its cap with all the interest in the ipo's and secondary listings lately, right? julia: yes, it is. hong kong is having a great start of the year with ipo's and listings. it has raised over 11 billion through ipo's so far this year, which is almost a 500% jump compared to this time last year. this time lester, the markets were shocked because of the pandemic and how it was spreading, but it is an indication it is going to be an extremely strong year, and it is also good for hong kong in the sense that is -- that it is going to have this growing

contingent of tech companies listed here. chinese -- china's largest tech companies will be traded in hong kong in addition to the u.s., -- shery: there were concerns about liquidity or whether hong kong markets could take on these two ipo's, now that they are having so many of these homecoming listings in the city. what are you seeing? julia: it seems it is holding up well. baidu did well, it was oversubscribed at there was a lot of investor interest. it was quite well-timed, the baidu price, and on the same night, billy billy offers an offering. so they are trying not to overlap with each other. i guess it could be saturated when they start trading, but it seems to be a steady stream of

ipo's, but it is not so overwhelming, the market knows what we are seeing. shery: julia fioretti in hong kong, our equity markets reporter. coming up, the shootings in atlanta put a spotlight on anti-asian sentiment in the u.s. our guests will join us. this is bloomberg. ♪

♪ vonnie: i'm vonnie quinn with first word headlines. brazil has raised its key interest rate 75 basis points, the first rate increase since 2017. policy makers looked faster shake economic recovery to counter the fastest inflation in four years. the central bank also signaled another 75 basis point hike in the next meeting. ♪ the world health organization says the astrazeneca vaccine should continue to be administered, as benefits outweigh risks. reports of blood clots prompted or than a dozen eu countries to pause immunizations, but eu

officials say preliminary data shows no association between blood clots and the vaccine. the european union has threatened withhold vaccine exports to britain and take steps to secure doses for its own citizens, unless the u.s. charts shipping shots to the block. european commission president ursula von der leyen and says she will consider holding the vaccines for countries that already have high vaccination rates. >> all options are on the table. we are in the crisis of the century, and i am not ruling out anything for now because we have to make sure europeans are vaccinated as soon as possible. human lives, civil liberties and the prosperity of our economies are dependent on that, on the speed of the vaccinations moving

forward. vonnie: a quarantine free travel bubble with australia, the deputy prime minister says it is too far off you do in sides discuss issues such as what to do in a covid outbreak. reports from new zealand say the government could decide on the decision next week. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ david: fatal shooting's at three asian-owned businesses in atlanta have put the issue of violence against asian americans in the spotlight and saw and causing banks to take a stand. bloomberg's su keenan it is here with the state from the white house, saying former president trump is partly to blame. su: the white house commented on the killing at three atlanta massage parlors. the president's spokesperson,

putting some blame on former president trump read let's listen. >> i think there is no question that some of the damage and rhetoric that we saw, during the prior administration, calling covid wuhan virus or other things that lead to perceptions of the asian-american community that are on accurate, -- that are in accurate, unfair, has elevated threats against asian americans. su: president biden was briefed overnight about the shootings and earlier said u.s. investigators had not yet determined if the incident in atlanta against asian americans was a hate crime, but he called the incident very, very troubling. shery: j.p. morgan chase and

bank of america both issued statements. what did they say? su: both took an unequivocal stand against racism of any kind, issuing serious concerned about the spree incidents against asian americans. there was a memo to staff that we are seeing physical assaults, verbal harassment and refusal of service. he said these racist acts cannot be tolerated. bank of america issued a similar statement, saying it would not tolerate racism in any performance as injustice in the u.s. against asian americans is "unacceptable to all of us." eight people, six of them asian women, were killed in a shooting tuesday at three atlanta massage parlors, the latest in a string of incidents against asians

since the pandemic began. a group that tracks violence against asian americans says they received more than 3800 reports since march last year, the latest incident of violence in atlanta putting this issue on the store -- on the forefront pretty much nationwide. shery: su keenan there from bloomberg. the huber chief inclusion officers says the rise in violence against asian americans during the pandemic is part of a long history of discriminate gay should -- of discrimination against the group. we spoke to affirmative-action and the bloomberg equality summit. >> this invisibility can be and back to this model minority myth. the model minority myth wasn't fabricated by asian americans. we did not go, we are the best minority, we are the ones who value family and education and so forth, and we are the ones who are hard-working -- that was

actually a mythology created by white supremacy, because post-world war ii, you started seeing the civil rights movement accelerating within the black community and other communities, and in the early 1950's, asian americans and black americans were cleaved closely together in pursuing the civil rights movements, and better recognition. if we don't cleave these communities apart and make them enemies, the civil rights movement is going to be so powerful, we won't be able to stop it. that is where the model minority myth was created, as a tool to alienate asian and black communities. and it was incredibly successful. asian americans in the country at the time said, if we internalize the mythology, does that mean the risk of us being interned tops? -- interned stops, does the risk of violence against us stop? and that is a terrible bargain. because violence against minorities makes them invisible,

fundamentally. >> and as i understand it, it blurs distinctions between groups of asian americans, causes people to not see differences, and it also has this result, i have read, of enabling other people to minimize cases of oppression, meaning we can go back to you, cynthia, and talk about ways in which we have sort of justified ignoring issues. would you agree with that, and maybe elaborate on your sense of why? >> yeah, i think it is really important to talk about historic precedent. it is the reason why we started stop the hate. there is a history in this country of scapegoating immigrants and people of color,

and dividing us in times of crisis. and you don't have to look back that far. if you look at the treatment of the arab, muslim, south asian, middle eastern communities leading up to and post 9/11. shery: that was the inclusion officer at uber technology as part of that panel. we will have more from the bloomberg equality summit, we will be hearing more from people including howard schultz, former chairman of air to's of starbucks, among many other big names. this is bloomberg. ♪

haidi: let's look at stocks we are watching. sophie: ipo buzz, billy billy launches its hong kong ipo, backed by tencent and alibaba and we have learned a company is set to price its ipo in $21 per share, which would see it raise 900 $15 million in its u.s. listing. john eu, u.s. regulators moving to banning more wireless chinese characters, -- chinese carriers.

where watching smic, which formed a chipmaking venture with the shenzhen government. and pulling up the chart, we have this stock holding below 48 this morning, but a drop in the dollar. it could signal bets by chinese banks that the currency will weaken over time. , bank noting the hedge against losses has risen, reaching a peak with higher on chart liquidity indicating the potential for this curve to move even higher. shery: coming up on "bloomberg markets: china open," more analysis of what to expect out of the china-u.s. stocks in alaska, both sides setting expectations low. we preview the meeting as our markets coverage continues. we look ahead to the start of trade in shanghai, shenzhen and

hong kong. this is bloomberg. ♪

♪ david: this is my kitchen table , and it is also my filing system. over much of the past three decades, i've been an investor. the highest calling of mankind, i've often thought, was private equity. [laughter] and then i started interviewing. ,i have learned best i watched your interviews, so i know how to do some interviews. i learned in my interviews how leaders make it to the top. >> i asked him how much he wanted. he said 250. i said fine. i did no due diligence. david: i have something i'd like to sell.