haidi: good morning. here in city we are counting down to asia's market open. anchor: i'm shery on a new york. welcome to daybreak asia. president biden said, not on his watch. he promises to outspend china on innovation and infrastructure and maintain america's position as the world's biggest superpower. the fed gives the ok to wall street banks to resume but

dividends and share buybacks if they pass the next round of stress tests. and still stuck in the suez, shipping companies are forced to either wait or go the long way around. both could hit the global supply chain. haidi: let's take a look at the start of trading here in australia. looks like we are set for a third straight day of gains here. along with most asian markets looking to follow. progress on vaccine distribution and an end to some restrictions when it comes to banking. we are watching the energy players as oil continues to lose much of its gains this week, despite the efforts taking place to fee the container ship blocking the suez canal. we are seeing in the first few seconds also trade. the dollars want to watch. the aussie and kiwi dollars have been trading low. we are seeing a comeback though.

the rbcs call for dollar strength will continue, with weakening momentum in the last of the aussie and kiwi dollars. let's again look at u.s. futures. trading flat at the moment. a little changed after the s&p 500 closed. modest gains. the high cap -- the highlight was small-cap. further afield, looking to the start of trading in tokyo and seoul. the end is holding at that 109 against the backdrop of a stronger u.s. dollar. crude seeing marginal gains after earlier losses. shery: let's turn to our top story. resident biden is promising to spend china -- outspend china on innovation and infrastructure. he knowledge the relationship with beijing would remain challenging. >> we are not looking for confrontation. we know there will be steep,

steep competition. two, we will have strong composition, but will insist china play by rules. shery: more from alex wayne. alex, we know we will get more on his spending plans next week. what can we see in terms of outspending china? >> i think it is important to note that when he talks about outspending china he is talking about the country as a whole. not trying to go toe to tell with china's government in for structure program. he is talking about the u.s. government spending, plus all the spending that is done by american companies, american tech firms, american construction firms, state governments. that is how he measures that. of course, what we will judge him on is not only a -- only whether the u.s. is ahead of china when he leaves office any

fears, but whether china has made any substantial gains on us in terms of wealth and military might. haidi: president biden also saying that in order to pursue this intention he wants to invite this alliance of democracies to the white house. is this the same kind of strategy of blinken and jake sullivan visiting seoul before their china meeting? >> president biden has shown he is much more interested in multilateral action than regards . the u.s. issued sanctions earlier this week in response for alleged atrocities. in xinjian province. they were done with the eu and canada and the u.k.. this is a different approach than the u.s. took under donald

trump. he is trying to put together a coalition of democracies to -- he does not want to confront china, but really it is, to confront china. it is not clear to us how this organization will differ much from the g7 or nato. there are already alliances of democracies around the world that could probably serve this purpose. biden's problem, really is persuading other democracies that are even more dependent on china than we are to join us in standing up to beijing. shery: we are now getting the latest headline saying china will be sanctioning u.k. individuals and entities. we do not have more details on what this entails. at the moment we know that china will sanction u.k. individuals and entities. we continue to see a tit-for-tat that alex mentioned when it comes to china against this alliance of like-minded countries led by the u.s. as well as the u.k. china will be

sanctioning u.k. individuals and entities over xinjiang. we are getting a few more details. we have seen the u.k. and european union and other countries also take action on these human rights issues and alex was telling us a little bit about that. but china will now sanction u.k. individuals and entities over it. alex, before we got to the foreign policy and diplomacy, the first order of business for president biden since taking office has really been to rein in the pandemic here in the u.s. he has made a lot of progress. >> the u.s. vaccination campaign has become among the west -- among the best in the world. we are out classing any country uple small places. the u.k., and we are far ahead of the eu. the president has something to

boast about their on the u.s. vaccination rate. unfortunately for him, the pandemic is still kind of raging in the u.s., we are still at 50,000 new cases a day, which is disturbing to officials at the cdc. especially as vaccinations accelerate. haidi: alex wayne. the fed says dividend researches will end june 30. letters must clear the next round of stress tests of sufficient capital first. what are the invocations of us? >> you already start to see it in stock price. jp morgan after hours trading a dollar higher. goldman sachs trading about two dollars higher. investors like this. for some of these banks, it is really part of the growth story. we see them rise all your, but the fact that they can return more of the capital to shareholders after record

results in some businesses -- on the other hand, the idea have how they spend the money, whether they return it to shareholders or lend more, is going to be something the public will watch very closely and politicians will certainly watch very closely. shery: this comes at a time when the fed ended the covid-19 capital break for wall street? >> that is absolute right. the fed wants to see the banks lending. there are signs all over the place that there might be some caution. we are not out of the woods yet. yet employment rate is still elevated. it is elevated more in some communities than others. we know that along racial lines the unemployment rate for black americans is higher than for white americans. all of that is concerning. we want to see the banks lend to the full economy. any signs of that not happening

will be a problem. the question on the slr is, what does it look like later on deck of --? will be permanently weakened as the fed changes course and the biden administration lawmakers look to a banking system that is more inclusive than ever before. shery: let's get to vonnie quinn with the first word headlines. >> former board member's of taiwan's central bank wanted overhaul -- of its currency policy. this efforts to hold back appreciation has cause long-term damage to the economy. according to a soon-to-be published book that they penned seen by bloomberg, the three acknowledged a devalued currency grievously helps taiwan's up economy -- previously helped taiwan's economy. the central bank held its kiwi -- key rate a record low, leaving at 2% as predicted.

the bank voiced concerns about rising prices but said there is no reason to tighten policies. the bank also raises inflation forecast for this year and next. the u.s. is targeting the myanmar military by lack listing to largest business entities it controls. that is a poor according to the department of the treasury. this includes freezing their u.s. assets. this is the most of your action taken against the myanmar military since the coup on february 1 overthrew the civilian elected government. a massive convey -- container ship blocking the suez canal remains firmly stuck for a third day as efforts continue to re-floated. it has forced other cargo ships to take costly and time-consuming ships around africa. delays to the supply chain are now inevitable and could translate into higher costs for consumers.

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'm vonnie quinn. this is bloomberg. haidi: still ahead, a look at how vaccines are exacerbating inequality in the u.s.. we will speak to the chicago community trust president and ceo for that conversation. we will talk

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haidi: see a little right now with our best -- our guest -- our next guest remains constructive on shock -- on stocks. the mainstay capital management founder and chief investment strategist is here. david, always good having you here with us.

is this a calculation of we might see steady rises in yields , the chart showing we are already seeing the massive 100. mostly correlated to the 10 year yield in over four years. why would you stay with tech? >> we are not. shery: is at the logic? why would you move to cyclical values and so forth? >> what we have seen is, as the 10 year been rising, especially on the days where the 10 year rises quite a bit, or we have had these spikes of up to 1.7 or higher in the 10 year on those days when we even see it move five or six basis points, we see it in the nasdaq as much as two or 3%. that inverse correlation has just become stronger and stronger here in the first quarter. when we look at the real plate -- the reflation trade, we look

at what is happening. the 2 billion in stimulus already of -- 2 trillion already approved in the three trillion that is estimated to be coming with president biden's build back better program. a lot of stimulus coming into the system that will benefit slick holes cut -- benefit slick cyclicals -- and if it cyclicals. >> we saw a jump in small-cap today. >> we had a nice rebound in small caps pop -- small caps. specifically the russell 2000. small caps of had a good run. we think a little profit taking over the last week or two, but we believe they have further to go. if you look at how this to most effects different companies, small to -- small the mystic companies gain to benefit. they were damaged the most in the selloff last year. many of the companies, the smallest, did not survive in those that did, were in an

environment that they would be able to thrive as the vaccine rollout allows the economy to open more and more. in the u.s., as the economy opens and that stimulus continues to come in, it is just a great environment for small caps to benefit from it. it is value-oriented and cyclical stocks. haidi: we'eeing a bit of a tear when it comes to the dollar. i want to show this chart with the key technicals. they suggest there is some backing from the rbc that the strength will continue. with the 50 about to stop the 100 there. is it your thesis that continued dollar strength is what we see? at what point does it become problematic? >> we have seen the dollar on a rise since the beginning of the year.

a rising dollar tends to impact domestic companies, large companies that rely more in exports, many companies on the s&p 500 index -- as much as 40% or 50% of their sales come from overseas. it brings us back to the small-cap focus and the reason small-cap tensions -- tends to do better in this environment. we see that when we look at the trajectory of the dollar and to the dynamics that impacted, we probably have a further strengthening dollar ahead of us. haidi: we also heard from the fed. freeing large u.s. banks to potentially clear the next round of stress tests and resume dividend increases. does that change your call when it comes to the banking sector? we did see the retest we did see the reaction across those stocks already. >> part of that rotation from

the stay-at-home stocks, the tech stocks that did so well for us last year, part of that rotation coming into value has been banks. ecf in particular we like. kra which is the regional banks. the news today is welcome news. ecf itself up about 3%. it has been doing very well here for a couple of months. it is a function of as the yield curve steepen's, from the two-year treasury to the 10 year treasury, we are above 150 basis points in the spread. the highest it has been since 2015. that increases net interest margins for the banks, increases profitability. the whole problem's with the financial sector for so many years with that flat yield curve as now that curve is stephen a further in the news we got today about being able to go back to more normal dividends, stock

buybacks, as long as they pass the stress test with sufficient capital. that is good news for the banks and for bank stocks. haidi: david, always great to have you with us. let's take a look at anp shares. we have an update from the company. that stock a started trading here in the sydney session saying the ceo does remain the ceo after there were conflicting report -- reports of his resignation. there stock up about 3% now, close to the section hi. is been engulfed with a number of scandals lately, leading to the speculation there would be changes at the top. much more to come on daybreak asia. this is bloomberg. ♪

>> do you agree that the ceos, the as the ceo of major tech companies, you should be held accountable to congress and the public? mr. zuckerberg? >> i think we are accountable to congress and to the public. >> do you think you should be held accountable? >> i am not sure i understand what you mean. >> should you be held accountable to congress and the public? for their way you run your business? >> yes, and we are. >> mr. dorsey? >> yes, accountable to the public. >> i said the congress and public. do you agree? >> yes. >> do agree mr. pichai echo --?

haidi: awkward moments and grilling there for the ceos of facebook twitter and alphabet taking questions from u.s. lawmakers over the handling of misinformation. our west coast reporter ed ludlow has more. ed, with the back-and-forth, what did we learn ultimately echo is there a fix? >> we learned the three ceos are split on the way forward. of course, on the political side, both sides of the aisle, despite it being a bipartisan initiative, have differing views about what to do. the ceos -- mark zuckerberg was clearly the most amenable to adjusting section 230 of the 1996 munication's decency act. that is the law that gives big tech a liability shield from anything posted on their platforms by users. that is the crux of what is happening here. the other end of the spectrum you have alphabet ceo who is

basically saying, do not make changes. if you change it to severely, content moderation laws, you could harm users by basically limiting their freedom of expression. somewhere in the middle of the two of them, jack dorsey came with a proposal which is to basically have protocols standard across the industry. they themselves were split, which made the whole theater even more intense because it gave lawmakers the opportunity to play them off of each other throughout the course of the day. shery: this was not the first time we have had these hearings for these ceos. what was different this time around? >> a lot of lawmakers referenced what happened on capitol hill on january 6. the audience, we are familiar with the images. basically, an organized riot

within u.s. government buildings. and a lot of lawmakers basically said, why did you not do more at the time to stop that? jack dorsey, the twitter ceo, did admit some response will be for that. basically going as far to say that twitter was used as a mechanism to share information around that event. mark zuckerberg was much more defensive. he said it was president trump that denied the results of the election. that it was president trump who called on there's actors to do that. it was tense, but that was the energy behind it. haidi: to these conversations move the needle when it comes to accountability and the regulatory landscape? >> they answer is probably no. investors appear sanguine. all three have outperformed the s&p 500 since the election,

since january 6. if you look at the wall street notes, they're basically saying facebook and google in particular are so big they are enjoyed it from it. -- they are insulated from it. they have the money to spend to react to it. mark zuckerberg talks about the number of engineers they employ literally for content moderation decisions. it is in the thousands. google, most of its revenue comes from search, not youtube or social media plan funds. in terms of whether we get regulation, it did not appear for there to be progress. unify do, -- even if we do, it could cause bottom-line disruption. shery: ed ludlow there. here's a quick check of the latest headlines. credit suisse is investigating the role of several high-ranking executives, including the ceo, in a probe of its dealings with failed startup lender greenfield capital.

sources say the bank is looking at how conflicts of interest were handled and how funds were sold to investors. greenfield collapsed and forced credit suisse to tent -- to spend $10 billion worth of funds. china's platform assent to be considering a u.s. ipo for the fourth quarter. they are currently worth around $20 billion and are also talking to potential investors about a pre-ipo funding round. the plans are believed to be at an early stage and could saint -- and could change. boeing will resume delivery of the 787 this week, following a five month halt while mechanics investigated. -- design falls. this weighed on boeings bottom-line as dozens of planes sat in storage. united airlines will be among the first recipients.

coming up next, still stuck. the massive container ship bossing the suez canal, showing no signs of budging. we will discuss. this is bloomberg. ♪

haidi: we are getting inflation numbers for the cpi out of tokyo for the month of march. we are seeing the headline number year on year coming in at a contraction of 2/10 of 1%. that is slightly better than the prior month, meeting expectations, excluding fresh food in your on your the numbers were contraction of a 10th of 1% and when you take out volatile energy prices you see a gain of 3/10 of 1% for tokyo inflation. that tokyo cpi number ultimately is just a marginal bit on expectations. let's take a look at how stocks

are trading this friday so far in asia. we are connecting most markets in asia to follow the u.s. higher after we saw modest gains. small caps driving u.s. dollar -- u.s. stocks higher. an end to dividend restrictions for banks boosting banking stocks. sidney stocks are up by's extensive 1%. kiwi stocks also trading a little higher. weakness we see both in the kiwi and aussie dollar's this morning. singapore and nikkei futures trading high. not much change when it comes to futures trading in the u.s., 3/10 of 1%. looking like we will see a continuation of that rally from overnight. shery: we also had a rally in oil prices. right now and the asian session, up 4/10 of 1%. we do have that massive

container ships stuck in the suez canal showing no signs of budging. forcing container carriers and other vessels to waste costly and timing -- time-consuming voices -- voyages around africa. jessica has there been any progress at all here? >> thanks, sherry. for right now, there has not been too much progress. we know a specialized to salvage team arrived on site earlier to try to reflow that vessel. just about three hours ago they began using this special director tool to help. we will see if that is successful. there are more than 200 vessels in line just waiting to pass through the canal. shery: is there an estimate as to when we could see traffic resume? >> the estimates range from a matter of days to them -- to a matter of weeks. the salvage team is that it

could take weeks, since the ship is really stuck and they need to start getting rid of cargo and doing more dredging. we can see how the situation is affecting global supply chains. our sources are telling us that caterpillar expects delays of a week or more from shipments from asia to europe. it is considering airlifting products f necessary. we are beginning to see how comedies are making plans to work around this disruption. shery: oil is very important. one million barrels a day pass through the suez canal. a little above that for wti, but it was under pressure during the u.s. session. why? >> we were seeing so much volatility this week. gains of about 6% in both directions. oil did drop today, pushed lower by a stronger dollar. those underlying concerns among investors about weaker demand in europe, rising covid cases in the u.s. and other parts of the world.

it's really dragging down a recovery in crude consumption. i also want to point out traders are continuing to watch the situation in the suez canal. aside from headline futures prices, we are seeing shipping rates go up so much as some of the world's largest container carriers are considering sending ships around africa, even though it is much more costly. to put that into perspective, rerouting around south africa could cost an extra trader thousand dollars for fuel for a supertanker delivering middle east oil to europe. haidi: extraordinary numbers are. the widespread we percussions of this container ship -- repercussions of this container ship stuck in the suez canal. william more insight on the repercussions when it comes to global trade from this blockage that we continue to monitor.

rahul kapoor will be joining us in the next hour. let's get first word headlines with vonnie quinn right now. >> takes. china imposing sections on nine u.k. individuals and for entities who it says, quote, maliciously spread lies and misinformation related to xinjiang. thank lou human rights and research groups and a law firm they. they will be banned from entering china, hong kong, and macau. in the u.s., president biden says he will not let china overtake the u.s. to become the world's most powerful country. in his first news conference since taking office, biden promised to outspend beijing on innovation and infrastructure. he declined to say whether terrace would remain in place on a majority of chinese imports. he knowledge the relationship between the two powers would remain challenging. >> we are not looking for confrontation.

we know there will be steep competition. two, we will have strong competition but we will insist china played by the international rules. >> president biden says he is open to diplomacy with north korea but worn continual violation of international rules of missile test could prompt a response. they fired their first missiles in over a year on thursday. talks with president trump, kim jong-un said he wanted sanctions relief in exchange for denuclearization. the fed says banks are cleared to raise dividends after june 30. restrictions on stock buybacks will be lifted. the fed enforced measures last year to ensure they have enough capital to endure economic pain triggered by the pandemic. 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'm vonnie quinn. this is bloomberg. haidi: taking a look at esg investing. the concept getting more traction in the finance world. don fitzpatrick actually stopped investors strength into bad assets. she spoke exclusively to bloomberg about how esg investing has changed. >> i think we can really expect behavior because we own things at the security level. i think that matters. obviously, the foundation that we manage and being aligned -- >> the open society foundation. >> i should step back. the open society foundation is the single largest private funder of human rights initiatives in the world.

their mission is focused on transparency of information, government accountability, promoting democracy, equitable allocation of resources, and it is important to me and the team that the way we invest is consistent with our values. as an investor, if you are not focused on these factors and issues, i think you really risk being in stranded assets and being in assets where the cost of capital for those who are not doing the right thing is going to ratchet higher at a next financial rate and vice versa. companies that are doing the right thing by society, for them cost of capital is getting cheaper. >> for those trying to figure out how to thing about esg echo what is the right way to think about it? is it the right thing to do ethically? is it a way to achieve progress

or specific outcomes? or is just a way to hedge or mitigate externalities? what is the right way echo >> is all of the above. when it first came out, it was about your exclusion list. that is not what esg is about. from our perspective, it is about both creating the technology that will allow a smooth transition to investing in companies like revia and and battery and ev is really important to us. it is also about taking your existing companies and forcing a level of transference a, within terms of greenhouse gas exposure, what their plan is to transition to net zero by 2050, when it comes to diversity and equity and inclusion, shining a light, asking them to disclose

what their company looks like. from our perspective, the more transparency there is, the quicker the progress people make. >> do they listen? do they answer? i know they listen and answer to blackrock, because they have $10 trillion. to they listen and answer to you? >> i think they do. we are not just saying check this box and we will go away. we are trained to work with them in terms of credible plans. we are telling them why this is important to us. for us, this is really about outcomes, not about checking a box. i thing they appreciate that. -- i think they appreciate that. i think every cfo we talked to genuinely wants to help test genuinely wants help on this journey and i think we can be a part of that. shery: dawn fitzpatrick speaking

on bloomberg front rub. up next, a look at the growing vaccine inequality with the chicago community trust president and ceo ellen gale. this is bloomberg. ♪

haidi: the goal of administering joy or million vaccine shots by april, doubling the target for his first 100 days in office.

are these doses really going to the people who need them most? despite efforts to address access, the role as been criticized for racial and geographic inequalities. joining us now is hilly and gale, the ceo of the chicago community trust. helene, it is wonderful to have you with us. we haven't spoken about the ways the pandemic has exposed inequalities and deficiencies in social structures. how is the vaccine rollout been a continuation of this narrative? >> thanks. this is clearly an important issue. i really applaud the biden administration for making the bold goal. but i think it is important to remember it is not just the number of people who get the vaccine, but it is actually who gets the vaccine. are we giving it to the communities that are most impacted? re: getting into communities that are at highest risk?

not only are we doing the right thing if we do, but we are also doing the most just thing, we are also doing the smartest thing. if we get it first of the people who are at greatest risk, that is where we'll have the greatest impact on a public health standpoint. i thing it is both fair and right and just to do that because in this country, communities of color have been most impacted. when we think about it globally, making sure that the u.s., who has always been a leader in global health, also thinks about our responsibility to the rest of the world. until all of us are safe, none of us are safe. it is not just enough to vaccinate people here. we need to think about how can we make sure the vaccine is available globally throughout the world and here in this country, to the people who have borne the greatest burden.

haidi: we have to address their have obviously been efforts to ensure vaccine at -- vaccine equality and make sure doses get to vulnerable communities. is the problem that there is so much systemic inequality facing the black community, facing the latinx community that this would happen despite best intentions? what needs to change right now? >> if you have goals and priorities, we know we can make things happen. here in chicago, where in the initial days of the vaccine rollout it was clearly not equitable. it was going to people who had the greatest access, who had the inside track, who had internet access and were able to get online and schedule appointments. the city made a concerted effort to make sure that vaccines got to the communities at greatest

risk. now we are seeing the numbers equal out so that the communities most impacted are the ones where priority is greatest and we are starting to see numbers mirror the impact within the communities. i know it is possible, seeing what we have done here on the ground in chicago. i think it is about making it a priority. setting targets and goals. shery: is there a risk about having vaccines more available, that actually picking and choosing vaccines makes a hierarchy about the rich people getting the best results in terms of efficacy of vaccines echo >> all of the vaccines approved for use, all three and a potentially we have a fourth that may be approved for emergency use -- all of them basically protect against what we most worry about, which is

getting sick, needing hospitalization. while there are some differences in efficacy, there is no inferior vaccine. at the end of the day, it is about getting people vaccinated and getting the people who are at greatest risk vaccinated first so we can make the biggest difference and beats the variants we are starting to see around the world. this is a race between the vaccine and the virus. we have to be smart about it and make sure we are getting as many vaccines out as possible, but also thing about where it can make the biggest difference. we should not be thinking about, which vaccine -- when we get the flu shot, do we think about who manufactures the flu shot? no. we have so much focus on the different vaccines and the different producers that people are really -- they are arguing

about the things that are probably not important or making to stations that are not relevant. -- making distinctions that are not relevant. shery: the federal debt has the federal vaccination rollout reflected those inequality issues so far? >> i think the biden restriction has come on very strong about developing a national strategy, equity at the center of this. one of the things i was involved in, it was helping -- i cochaired the studies of the national academy of science did to set the framework for the vaccine rollout. equity was front and center in what we suggested. we knew how this pandemic had impacted communities of color and communities that had limited access. this demonstration has taken

that blueprint and thought about equity as a core part of the rollout. his or more that needs to be done? for sure. but when you think about having equity, you end up with different results than if equity was not part of the consideration. i am optimistic we can do this. haidi: you set -- he spent 20 years working with the cdc in hiv-aids issues. hiv-aids was often referred to as a pandemic of the poor and an epidemic that ran along social inequalities and social lines. are these patterns you see with the coronavirus? >> for sure. when we have these pandemics that in some ways biologically can impact anyone, we recognize that in the end they do cross and highlight our social

faultlines. biologically, we are all vulnerable, whether to hiv or to coronavirus. what it does is it impacts people who for other reasons, for social reasons, because of the job they work in, because of being marginalized in society and not having access to health care and information, because of the neighborhoods people live in, all of these things highlight the social and economic faultlines in our society. hopefully, we will learn our lesson about hiv and from this current pandemic and we have to think about how we also look at health equity in the long-term. we will continue to have these pandemics. they will highlight our societal

and economic faultlines. this is a real opportunity for us to think about how we can do things differently. haidi: in the developing of the vaccine and as a response to the virus, we have seen an extra dinner effort in operation warp speed, as well as donations from the likes of the bill and linda gates foundation. you have worked with them, as well. do you think this changes the structural way we respond to disease? and how vaccines are developed? is there a greater role for the private sector going forward? >> is a role for all of us. the private sector, the public sector, the nonprofit community. all of us need to work together to think about, how do we repair -- prepare ourselves so we are not caught flat-footed and really have the prep rare and -- preparedness we need when

pandemics occur. you mentioned the gates foundation. we all knew that biological impacts would be even greater then military threats we had. we do not spend the same kind of resources making sure we are prepared for the next biological challenge. i hope that after this, we really think about, what does it mean to keep our public health infrastructure strong decca what does it mean to work for to be prepared for the next pandemic? i think there's hopefully, because there is been such a shock, not only from a public health standpoint but from an economic standpoint, that we prepare ourselves and think about prevention in the long run. shery: it was great having your insights. ceo of the chicago community front. we will have plenty of more to

come on daybreak asia. this is bloomberg. ♪

haidi: a quick check of the latest business headlines. microsoft is an advanced talks to acquire san francisco-based messaging platform discord for at least $10 million. this is they seek to increase consumer offerings. this could happen as soon as

next month. discord's popularity has surged during the pandemic. a u.s. labor board has ruled that tesla has repeatedly violated u.s. labor laws and must offer to rehire a union worker it had fired. it must also make ceo elon musk delete a tweet from his account in 2018 that says it unlawfully affects employees. tesla has denied wrongdoing. nike and h&m face potential boycotts in china after raising concerns about forced labor in xinjian. shares for both companies fell after chinese social media campaigns. the weston stepped up action against china for alleged human rights abuses. shery: we will also watch companies in japan that have been called out over controversy, including the unit.

we will watch chip stocks in south korea, including samsung. the industry is copied between u.s. china tension. we will discuss the implications of the ongoing situation in the suez canal with the ihs market head of commodity analytics. we will also hear from the credit suisse asian investment conference. at the top of the hour we will talk about markets with eleanor crane. this after we have u.s. stocks finishing higher with progress in the vaccination campaign. we did a huge jump for cyclicals, small caps seeing their best day in two weeks. the market opens in tokyo and seoul are next. this is bloomberg. ♪

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oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. shery: welcome to daybreak asia. i'm shery ahn. haidi: i'm in sydney. asia's major markets just open for trade. set to track the s&p 500 rose amid progress on vaccine distribution and an end to summed -- to some restrictions for banks. present biden says, not on his watch. he is taken to outspend on china when it comes to innovation and

infrastructure and maintain america's position as the world's biggest superpower. and still stuck in the suez canal. shipping companies are forced to choose between waiting it out or going the long way around. it could hit the global supply chain hard. shery: japan and south korea coming online. real estate and communication stock leading the gains on the nikkei, extending the sessions -- the second session of gains. the yen holding steady. after two sessions of losses against the u.s. dollar. we did get tokyo march core consumer prices coming in at -- declining less than expected and also we are hearing the japan plans its range or yen program to help local tourism industries. take a look at the kospi. it is gaining ground for a second content -- consecutive session. we have south korea maintaining their current social distance,

and the korean won at the moment still losing ground. it has been under pressure. nearly one week low. haidi? haidi: we are watching commodities as well, given the implications of the suez canal implication. pretty wild trading again in the session. some of those losses coiling back in the asian markets, we still of the swinging up prices of round domestic container ships stuck in the suez canal and crude shipments that remain stuck there. when it comes to equities, we are seeing futures, when it comes to wall street, modestly higher. extending small gains we saw on the s&p 500. the u.s. 10 year yield holding steady. after a disappointing auction overnight. taking a look at gold, while falling over concerns of the yield outlook.

we are seeing just a 10th of 1% gain in the early part of the asian sentence -- asian session. let's get market analysis with eleanor crane. one of things you said is that rotation trade, post pandemic optimism, a lot of the alpha has already been had. where do we go from here? is there a sense we will need to get a lot more, i guess, selective in our work fully as he? >> i think that is certainly summing we have on our minds. we have seen over the past week the kind of inflation accelerating, correcting as the market got a little ahead of itself. broadly, there is still juice left in the tank in terms of inflation rotation for continue -- to continue. we have these march to may basis that collapsed. a lot of the comparisons to the heart of the crisis last year. it remains depressed through

may. it will continue to support that reflationary outlook, coupled with supply constraints and pent up all coming together. we have the labor market rebounding at the moment. we have an acceleration in hiring and consumption capacity is colliding with pandemic fatigue. consumers are ready to spend and deploy savings. i think it continues to provide a reflationary cocktail over the coming months for the markets to digest, coupled with this more permanent shift to fiscal dominance. higher inflation growth and higher rate trade is not going to stop here. although, as you mentioned, we are certainly looking at a more nuanced a look, having this actual reopening, a lot of that chic -- chief optionality has

gone. broadly, recovering labor markets are going to continue to support momentum and it's why we stay with that reflation the medic. haidi: is the outlook for commodities getting more nuanced, as well? we have seen fallback pre-much across the complex. >> i mean, again. the market got a bit ahead of itself. i think we have that broad, thematic in play in terms of the huge supply deficits and structural under investments. we have this new infrastructure package coming down in the line in the u.s. that will include around, at this stage, $4 billion in green spending and of course metals like cobalt and nickel will continue to be supported by strong demand. not just from the u.s., but

globally, governments are set to spend bigger on greening their economy as we see increased demand for electric vehicles. renewable power generation, things like wind turbines. we heavily under invested in the supply and it is needed just to meet the demand on the green front alone. there is no substitute. in essence, we see these tailwinds for commodities in play, as well. shery: yet we do have a stronger dollar. this chart putting the dollar between is 50 day moving average and its 200 moving day average. the next level could be its new level of resistance. what will this do across emerging markets, because we thought a weaker dollar would be beneficial? >> of course we have seen with

the dollar this kind of squeezing higher, we have higher u.s. yields coming through. amidst more efficient vaccine rollouts and robust fiscal outlooks, buoying the growth outlook for the u.s. and the dollar, but when it comes to when we see the dollar going from here, we still think across the second quarter that the dollar will turn back lower, although maybe the pace of the decline will moderate relative to that which we saw in q4 2020. broadly, a global cyclical upturn does lend to a weaker dollar as capital is put to work elsewhere. with recoveries outside the u.s. as they strengthen, as well. we've yet to through -- show the effects of the u.s. trade deficits and continued see sustained dollar pressure from

the fiscal shift we have seen ongoing with the structurally higher budget deficits, as well. we are expecting a resumption of that depreciation trend, which will support that commodity thematic. shery: eleanor crane, good to have your calls there. let's get to vonnie quinn with the first word headlines. >> the ceos of facebook, twitter, and google faced a new round of questioning about misinformation in the house. they were grilled over what their platforms have enabled, with emigrants focusing on extremism and republicans on child expectation and bias. jack dorsey took some response to billy for the stop the steel movement -- stop the steal movement. the u.s. is targeting the myanmar military by blacklisting the two largest business entity it controls. sanctions against the two companies led by senior military officials include freezing u.s. assets. this is the most severe action

taken against their military since the coop on february 1 overthrew -- overthrew the civilian government. three former and current board members of taiwan central-bank want and overhaul of its currency policy. they say ever stole backed depreciation has cause long-term damage to the economy. according to their soon to book, the three knowledge that the devalued currently -- currency helped taiwan's economy but is now stifling growth. the philippine central bank held its key rate at its third straight meeting. leaving it at 2%. the bank is concerned about rising prices but says it is not a reason to tighten policy yet. inflation is said to reach its two to 4% target this year. 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'm vonnie quinn. this is bloomberg. haidi?

haidi: so ahead we will learn about the repercussions of the blockage in the suez canal. rob holcomb for will be joining us later. plus we are still live at the credit suisse asian investment constant -- conference. >> good morning. in about an hour we will be joined by the malaysian finance minister to discuss the outlook for the pandemic recovery after the government announced a another round of fiscal stimulus. in about a half hours time will catch up with clue on their pandemic with leisure increasingly important to the company. plus the obligations of the global chip shortage. stay tuned for our exclusive coverage at the aic. this is bloomberg. ♪

shery: president biden is promising to outspend china on innovation and infrastructure. in his first news conference since taking office, he acknowledged the relationship with beijing would remain challenging. >> we are not looking for confrontation. although we know there will be state -- steep, steep competition. two, that we will have strong competition, but we will insist china play by international rules. shery: let's get more from resign or. -- bruce einhorn. we have any clarity on his china policy, especially when it comes to tariffs? >> the president would not answer a question about whether he is more likely now than before he entered office to keep in place the tariffs or whether he is considering banning products produced with forced labor in xinjiang. he did say

that those are things that touch a smidgen of what our relationship with china is really about. he said the u.s. would continue to work with its allies to call out china's violations for the treatment of uighurs in xinjiang and china's actions in hong kong. he did not comment on the tariffs from the previous nutrition. haidi: what actions are we expect them from congress regarding china? >> we have heard from democratic leader chuck schumer that the democrats are going to be pushing legislation in congress, which has its aim of increasing american competitiveness in science and technology. promoting semiconductor manufacturing, research and the u.s..

schumer is presenting this as a response to china in a letter to senate democrats. he said this is supposed to counter the growing economic threats the u.s. faces across the globe. he quoted, especially from the chinese commonest party. this is something that may have a chance of passing in congress because schumer has a republican cosponsor in todd young. unlike a lot of the other items on the democrats agenda, this is something that might get some republican support. shery: north korea this week also firing missiles. what did president biden have to say? >> he said that he is open to diplomacy with north korea. he warned that the missile test violate international rules. the u.s. also has requested a meeting -- an emergency meeting of the un security council,

which will take place today to discuss north korea. haidi: bruce einhorn there with the latest. let's turn to the pandemic now, with a look at bloomberg's covid resilience ranking. erase countries based on the success at containing the virus with the least amount of social and economic disruption. we are joined by emma o'brien in beijing. how we see notable changes in this ranking? >> we certainly have. we have been doing this for about five months, since november. at the beginning it was all about these countries being best at containing and eliminating the virus. we still have the likes of new zealand, taiwan as place where life is pretty much back to normal at the top. a new entrance to the top five is israel, which is really climbed up the rankings after had a terrible outbreak, consistent lockdowns. since vaccines have come to the

four, the government has doubled down as we know. it is the most vaccinated place in the world. that is starting to pay off on things like reduced death. we also rank as part of the resilience ranking openness and people's movement and the ability to move around. they are starting to open up borders there. big improvement in israel. plus, to the other big vaccinating countries, the u.s., the uae among them. shery: where is the u.s. with president biden now doubling his vaccination goal? >> the u.s. has jumped significantly. it is at 23rd, so not in the top 10, but a major improvement, six runs up from where was. it was down around the 40 level when we first started this. it still has the world's largest outbreak. it is seeing that pay off as well in reduced numbers of

deaths, which is part of the tendon metrics we track as part of this covid resilience ranking. shery: who moves down because of lagging vaccinations? >> we have not -- what is quite interesting as we still do have a sort of top five, top 10 dominate it by asia-pacific countries that have really rocked containing the virus itself. they are all very slow when it comes to vaccination. part of that, particularly in china, which is not feeling the impetus to get vaccinated because the virus is not a present threat anymore, so you do have those positions very much at risk. singapore moved quite high, because it is an exception in the asia-pacific region that is moving quite fast with vaccination. it is closing the gap with new zealand, which has been number one since we started this thing.

shery: emma o'brien there. you can get our roundup of the thor -- of the stories you need to know in today's addition of daybreak. bloomberg subscribers go your terminal, also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get news on the industries you care about. this is bloomberg. ♪

haidi: emerging markets cure mark mobius as reactions to the central bank shakeup in turkey was overdone because the new chief has pledged his commitment to bring stability back to the lira. he spoke to bloomberg's david westin on wall street week about other opportunities he is seeing across asia. >> you see taiwan is big, korea's big, mainly in these technological areas. but we also in india, in the

technology area, and software, and if you look at a place like result, they are doing a lot on the software area in terms of internet shopping, that sort of thing. we consider the technology area very very important in every one of these countries. every sector is being hit with that. it is true the emphasis is on asia now. only because of the technology, but because of the growth. growth is better in asia, compared to other parts of the world. >> when it comes to india, i think there is a simplistic view that is basically -- big risk, big reward to invest there, secularly in equities. do you think that is fair? if so, how do you get the reward without the risk? >> ids think -- i don't think that is necessarily a fair assessment in terms of india be more risky than china or brazil or korea or taiwan. it is a big country and there

are some of the opportunities in different sectors. our extremes in india has been very good. -- our experience in india has been very good. there are problems with theocracy, some excess regulation. but genuine -- generally speaking, the indian economy has done very well, the modi reforms are coming on very nicely, it it has been a good market for us. if you look at our portfolio, you'll see india is the biggest country allocation. >> how do you take into account political risk? compare if you can india with russia. there is perceived to be political risk in russia particularly because of sanctions already in place and the prospect of further sanctions. how do you assess political risk as you put together your investment decisions? >> we look at the macro. most important, from the macro point of view is exchange controls. we want to be able to get money out as well as brandon. that is number one.

for example, in venezuela, if they say i am going to take over companies, we are out of there. we will not be there. that is the first thought. consider currency controls and foreign-exchange controls. the other part is specific to this particular company we have invested in. we look at their background and see if they have any political connections or involvements that could hurt the company in the future. we try to avoid those companies. that is a way to avoid political risk. even in russia, you can get involved in a company that seems to be doing very well but is strongly political connected and it could hurt them in the future should things change. that is true almost every country around the world. shery: mark mobius speaking to david westin. catch that full conversation on wall street week airing friday in new york. here's a quick check at the

latest business headlines. credit suisse is said to be investigating the role of several high-ranking executives, including the ceo, in a probe in its dealings with failed startup lender greenfield capital. sources say the bank is looking at how conflict of interest were handled and how funds were sold to investors. greenfield collapse and forced credit suisse to spend $10 billion worth of funds. china's evergrande online home in sales platform is considering a u.s. ipo as soon as the fourth quarter. sources say they are currently around $20 billion and are also talking to potential investors about a pre-ipo funding round. the plans are believed to be at an early stage and could change. and it isn't talks about three eu members about orders for its covid-19 vaccine. if a deal is signed it, it would mark the first recognition of

chinese drugmakers shot in the developed world. the company declined to identify the members. chinese drugmakers have been criticized for lack of data disclosure with shots so far only going to developing nations. take a look at some of those shipbuilders in korea. with her news that one has won a 637.1 million one order for ships. it is trading at a one-week high. samsung also winning at 2.8 one trillion won order, to build 20 container ships. they are trading at their highest level since january. they have to build those ships by june 25. just a continuation of demand out there when it comes to shipbuilding, shipbuilding containers, given the rebound in global trade after the pandemic. in fact, we have seen global

trade really taking -- really halting at the suez canal, the blockage still ongoing for a third day. we will discuss that with the ihs markets global head of maritime analytics raul kapoor. haidi: we have seen repercussions across the commodities complex in particular. full tile swings in crude prices. let's take a look at the state of trade when it comes to asian markets. we're seen most asian stocks trading modestly higher, following slight gains we saw on wall street overnight. big news was at rotation back into small caps. the nikkei seeing robust gains at 1.5%. the kospi is up by 3/10 of 1%. we are seeing a solid day of gains here in australia, a third straight day of gains as we continue to see a little dollar

strength in aussie and kiwi weakness, as well. lots more to come. this is bloomberg. ♪

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(woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. that's aerotrainer.com. vonnie: this is daybreak: asia. china is imposing sanctions on nine u.k. individuals saying they spread lies and misinformation, severely undermining chinese-u.k. relations. their assets in china will be frozen and they will be banned from entering china, hong kong and macau. president joe biden says he will not let china overtake the u.s. to become the world's most powerful country. in his first news conference,

biden promised to outspend beijing in innovation and infrastructure. the president acknowledged the relationship between the two powers would remain challenging. >> we are not looking for confrontation, although we know there will be steep competition. two, that we will have strong competition but we will insist china play by the international rules. vonnie: president biden vowed to ramp up the pace of administering vaccines in the u.s. he set a new goal of shots. he is focusing on low income hard-hit areas. the fed says banks will be allowed to raise their dividends after june 30 if they clear the next round of stress tests. restrictions will be listed for lenders that perform well. the fed enforced of the measure

on wall street banks last year to ensure they have enough capital to endure economic pain. 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'm vonnie. this is bloomberg. shery: the container ship blocking the suez canal may take weeks to free. that is according to the company working to unblock the waterway. it is a situation that has highlighted the fragility of global supply chains. for more analysis, let's bring in the global head of analytics of ihs markets. if this takes weeks to resolve, what will be the impact of global trade -- impact on global trade flows? >> i can say this is a real event. it is a well oiled machine. we see it highly unlikely the blockage will extend for weeks. best case is for her to be

resolved within the next few days. everyone is talking about monday with a high tide. we would expect the shipowners to wait and see more. the widespread divergence is highly unlikely. while we are hearing right now are two container vessels, which are already diverting not much beyond that. the current situation is chaotic but as you say, if it goes into weeks, it would turn catastrophic. the blockage in our view should be resolved by early next week. if you look at the number of ships, there close to 200 waiting to cross the canal. every additional day of blockage is leading to a rapid buildup of ships. it is a blow to the already constrained supply chain. they were already recovering from the pandemic. it could not have come at a worse time. shery: which industries are you expecting to take the biggest

hit? >> we expect in the short to medium-term the asia to europe trade. if you see the container line, they have put what already -- what they already have. that is a segment that should be severely hit. what would happen is even a two or three delay -- or three day delay would add to the supply disruption. in a worst-case scenario, there is an option for the shipping lines to reroute around africa. that will still add 2000 nautical miles and another week to the transit time. that is a costly proposition. this does not matter for the next few days. it is the single vessels. this would lead to rising fuel.

this could extend all the way impacting the supply chain for months. haidi: how does this potentially play into a much longer term problem we have seen starting with the pandemic in terms of rising container costs and these bottlenecks when it comes to logistics globally? >> if you look at pre-pandemic, we had already seen supply side of container shipping reduced. the pandemic effectively acted as a spring and we have seen the rates. given we have seen all the disruptions in asia and what we are seeing in the u.s. and europe, that led to carriers being in a strong position. what we are seeing right now, the repositioning of the containers is what is driving these higher fixed rates. we expect these to sustain over the next few quarters.

the rates will be higher than what we have seen the last few years. haidi: is this a problem with canal infrastructure or is this a problem with this trend of having these super ships and having to change the infrastructure to fit them? is this something the shipping industry and logistics industry is going to have to rethink? >> exactly. that has been coming out a lot the last few days. if you look at the asia and europe trade, they continue to get bigger. these are mega container carriers. from the industry if there was an incident like what happened today, how would you salvage the vessel and restore the trading? i will not blame it on the infrastructure. it is a well oiled machine. this is a rare event.

it certainly questions the size of the vessels which continue to get bigger and bigger. shery: so you don't envision an alternative route because it is too costly yucca it is -- too costly? >> it is very costly. when you break it down into additional costs that would be involved, it would be because inflationary for the whole supply chain. shery: we get the situation resolved as soon as possible and does not take weeks, how long will it take for everything to go back to normal? you are to get port delays and other issues. >> that is correct. even if they get to resolve next week, this will have ripple effects over the last few weeks. it is about the ships getting to the ports. containers coming back. starting the whole supply chain again. that is why this have effects --

this has effects. i can talk about the oil market as well. their impact is limited in our view. the u.s. and the brazil are the emerging exporters. limited impact on the other markets. one to watch out for is the container supply chains in asia and europe. haidi: you expect the reflationary impulse we see globally continuing post pandemic in terms of sustaining these high levels of demands for shipping? >> certainly. we have been calling this for the last few years and a terms of the stability curve. -- in terms of the stability curve. we have seen strong consolidation in the container ship industry. we are talking about few alliances controlling most of

the market. active capacity growth has been coming down. what we saw in terms of demand, all the similars which came from monetary to physical and the spenders and consumers and in the western economy stuck at home. we see that in our data sets as well. this will continue with others stimulus that came in. at least for the next 12 to 18 months to capacity is coming under control. haidi: always great to have you with us. global head of maritime and ihs market in singapore. we have a conversation with the travel booking up cfo. -- booking app cfo. this is bloomberg. ♪

sophie: i'm sophie kamaruddin in hong kong. we are covering the asian investment conference hosted by credit suisse. the next guest, the cfo of travel company. thank you for joining us on the show this morning. being nimble has been key for the company. reflecting the times of the

website, you see a drop-down menu for car rentals as well as trains in china. this as you are seeing domestic spending in the leisure space and anchor for croup. how is revenue performance shaping up and are you anticipating a return to leisure travel in the second half as projected by the director? >> thank you for having me. i think everyone is excited about travel recovering. everyone is expecting cross-border to open up in the second half of this year. but we have seen over the last six to nine months is that travel and asia have been coming back particularly in markets where the pandemic is well-controlled. in singapore, in places like hong kong we are already engaging with consumers and helping them find things to do over the weekend. sophie: which other markets do you see opening up faster? how are you positioning to

provide your offerings alongside this recovery? >> we operate in more than 20 cities. we are in asia player. singapore, we are one of the fly -- the five platforms helping the government stimulate leisure . it ranges from vacations and hotels and tourism activities. anything consumers are interested to do, we are able to help them make it more convenient and more safe. sophie: is it safe to assume you will not be stepping back as offerings for your customers? how are conversion rates looking? >> the main function you mentioned in terms of live and

home, all of these are to stay. what we are seeing now is digital adoption is picking out for the consumer as well as the merchant. with our recent funding, we will be investing more to help our merchants become more digitally savvy. that includes contactless tracing and livestreaming as you mentioned. sophie: on that, as you pointed out, merchants are part of this digitization. there is some competition in that space. what is the progress on mapping out the two b solution to integrate merchants into the ecosystem? >> merchant has always been in our hearts since we started the company several years ago. we continue to invest helping our merchants in asia. help them become more tech savvy.

with this new round of investment, we are looking to strengthen capabilities. they are able to connect with a lot of strategic business partners. last year, we launched a partnership with southeast asia. continue to help bridge merchants with consumers as well as other large internet players. sophie: have there been any more tweaks to commission fees charged to your vendors? >> know, we are actually very supportive. in singapore, where one of the platforms working with the platform singapore rediscover. we are trying to help merchants as much as we can. making sure they earn their commission to grow their business. sophie: still very much at the heart of what klook does.

what is the monthly user account you have seen year to date? >> we are seeing traffic come back very quickly. traffic is near pre-covered levels. over the last 12 months, we have been able to engage with customers from a domestic perspective. we are seeing domestic business have a three to four times growth. in terms of cross-border, we are expecting that to come back later this year. we continue to build our platform. we expect travel to continue to be a megatrend going forward. sophie: what other customized offerings are potentially in the works to suit evolving customer behaviors going hyper local? that has been an increasing focus for klook. >> we have always been a mobile firm. we think that will be increasingly important post-covid. we see convenience, being

digital, being flexible. all of these are important to the consumer. to add to that, it is helping the consumer make their trip more personal. having a lot of crowds, multi-day tours. a lot of these will change. being able to dictate your own trip on your mobile when you are in destination, that is really important. sophie: people want to have things now instantaneously. other players are coming into the leisure activity space. in september, amazon explorer launched following in the footsteps of airbnb experiences. how are you are accounting for this increasing competition? >> i think a lot of companies it demonstrates travel and leisure is a huge market should we think we have made a market in asia and we will continue to deepen our presence here.

we think with the emerging middle class and consumer in asia there is a lot of growth for everyone including ourselves. sophie: have you had to scale back operations in any markets perhaps where you may see some struggle or have you had to put the brakes in some of these markets? >> last year was not an easy year for a lot of companies including ourselves. overall, we have managed the situation quite well. we continue to gradually evolve our business so we are in a better position to build for the future. that would include adjusting to some of our teams here and there. overall, we are committed to building a global business. sophie: with the increasing interest in esg, will there be plans to revive the impact tourism idea? >> we are a key stakeholder in the market we operate in. that is increasingly atopic that

nearly -- increasingly a topic where there needs to be coordination should also make tourism more sustainable for the long term. sophie: thank you so much for joining us on the sidelines of the credit suisse agent investment conference. -- asian investment conference. haidi: you can always watch that live and catch up on some of the past interviews on tv . that is for bloomberg subscribers only. you can check it out on tv on the bloomberg. ♪

haidi: chinese banks are set to release earnings today. our bloomberg markets david joins us now. phyllis in on what you are watching out for. -- fill us in on what you are watching out for. david: fourth quarter numbers, we are going to be joined later today -- the thinking is you're going to get more in terms of profit growth for this year. everything from npl's, interest margins, that would hopefully mark the bottom. we are watching dividends particularly as well. 6% on average. when you look at this bloomberg chart, i would imagine also as a function of some of the restrictions outside china on

giving dividends out, you're getting quite a spread on china. just to give you a further indication of some individual place you could look into further, have a look at this graphic. we are three to 4% on the index. that goes up when you look at the top five you get a pair china mentioned. also alongside icbc construction bank. among others reporting these next couple of days. shery: what should we be watching out for in the markets? david: a lot of these leading indicators have weakened, momentum, turnover, market threats. particularly for today, it is the hang seng index. it is the 100 day moving average we are watching closely. there is a great piece from our colleague at bloomberg news talking ice through this.

we are sitting right on top of that. the last two bear markets were preceded by a drop. that is something we are watching closely today as we head into the weekend. haidi: in terms of the pressure shery was talking about, the worst strakes for chinese stocks in the last nine years. we see any upside to the growth forecast? david: if that translates to earnings. bloomberg economics raised their november forecast. that is 9.3% on the back of the factors you are looking at on your screen. when you look at these four, that is a momentum. it is the last that will probably give you a little incremental -- something to trade on because that is looked outside.

you look at the export numbers hong kong is reporting yesterday. something worth watching. all of the economies that do depend on china in terms of demand. shery: david ingles, we will be watching. nike and h&m face potential boycotts in china after raising concern about forced labor. both companies fell after online campaigns against the brands. the west has stepped up action against china for alleged human rights abuse. beijing says the accusations are false. a u.s. labor board has ruled tesla has repeatedly violated u.s. labor law and must offer to rehire a union activist it had fired. the company must make ceo elon musk delete a tweet from his account in 2018 that the labor board says unlawfully threatened

tesla's employees' stock options if they chose the union. boeing will deliver its dreamliner's this week. mechanics reported potential design flaws. the delivery drought weighed on boeing's bottom line. united airlines will be among the first recipients once regulators signoff on repairs. haidi: we are seeing some gains to end this week of trading in asia. the outperformer, japanese stocks. japan pushing higher for a second day after the bod governor seemed to a lot of his way to reassure investors the boj will keep buying shares. the nikkei off the session highs but over 1%. the kospi trading hi. australia, seeing gains of 4/10

of 1%. new zealand the underperformer, off by 2/10 of 1% with the kiwi one of the weaker performers against what appears to be a resurgent u.s. dollar. the rbcs saying the dollar strength will continue so watch out for the implications of emerging markets. global equities still close to record highs. this being driven by the reflationary policy as well as the accelerated rollout of covid vaccines. coming up next, we have an exclusive interview with the malaysian finance minister and the outlook for the recovery and more. plus, a discussion of the challenges facing asian tech. the credit suisse head of global research joins us. that is just about it for daybreak asia. markets coverage continues. hong kong stocks look to be at some sort of tipping point.

downward pressure continues when it comes to trading on the mainland. thbloog. ♪

tom: it is 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open. david: we are here. it is friday. coming down to the open of trade in the chinese mainland and in hong kong. our top stories. >> an overall goal to become the leading country in the world, the wealthiest country in the world on the most powerful country in the world.