haidi: good morning. we are counting down to asia's market open. shery: welcome to bloomberg asia -- our top stories this hour. asian markets are set -- losses started on wall street. the unprecedented move wiped 35 billion dollars from bellwether stocks. haidi: china expands its

tit-for-tat dying shins, -- tit-for-tat tat actions against the u.s. and canada. and the removal of -- haidi: let's take a look at how we are setting up for the asian trading day. sophie: adding .2% this morning while the australian dollar is looking unchanged as we digest the news brisbane his entered a three-day lockdown after an outbreak of the u.k. virus variant. ending the job seeker program and we are keeping an eye on energy names. we have nikkei futures looking steady. the yen trading at its weakest level in about a year.

this after the index capped its biggest rise in -- on friday. investors expecting the global consumer stock value set for the post pandemic spending. asian discretionary shares lagging after opening trades with energy and some of the biggest changes like a tendency for premium brands. china at the center of concerns -- keeping an eye on the operator of unique lows factory. they are facing a boycott by china. stoxx named in the family office selloff -- the drop was in play

for baidu as well as other names before friday's soft trade. shery: we have an exclusive insight into the wall street block freeze rallying investors. goldman sachs has made itself a player. goldman had blacklisted bill swan -- it's a huge margin call, but what is going on here? guest: we have to go back to who bill swan is. some see him as a bright and talented analyst from back in the 1990's. he started his own fund, but sometime in 2001, he was trading across confidence and there were

insider trading charges that prompted a charge of wire fraud. that was -- in the last few years since that setback, that family has -- goldman wanted to do business with this fund because they were throwing a lot of business to rival commissions. goldman has gone from blacklisting him to becoming one of his biggest financiers and that has landed them in the nexus of this margin mayhem that has played out over the last few days. haidi: what was it that changed? was it that he was not punished enough? guest: we are still in the early

stages of reporting this out. the insider charges go back to trades carried out in 2008 and 2009. by the time goldman wanted to change its policy, it had been over 10 years. there were others that were happy to do business, but what prompted the change, we don't have enough clarity. shery: what led to this huge margin call? overall, the markets have been doing pretty well. guest: that's right. this is a question that affects everyone. the slight -- the stock price slumped off a bit and that might have been a trigger. we are talking about his fund that a lot of people told us the strategy was big positions,

concentrated positions in a small bunch of names that operated with a high level of leverage. once the stock started going in the other direction, you had some of the biggest names on wall street. one or two of the banks, it seemed like the others followed suit and all of the sudden, you had these big players in the market with a lot of collaterals making its way into the markets and that drove some of the panic selling that led to the stock price. corporate giants slumping initially. that's why we are waiting with anticipation in the rest of the week with how some of these names are going to trade in the

early part of the week. shery: thank you so much. let's bring in brian jacobson, chief portfolio strategist at wells fargo for more on the bigger picture. great to have you with us. we know these block rates are not uncommon, but the size and magnitude that happened during normal trading hours, what is this? is it a one-off? guest: we hope so, but it seems like we've had many one-off events that could shake investors comments -- investors confidence. all these big block trades and thanks to the great reporting at bloomberg, we are getting more clarity as to what the motivation was behind it. one of the things we were wondering is you see the price

action and you wonder if it is fundamentally driven or if it is something else. this is a big case of that something else and it would be more interesting if these were penny stocks were very thinly traded stocks, but some of them are fairly large names, so it makes it that much more puzzling as to why it happened and why the price action was what it was. haidi: when you are looking at fundamentals, what are you watching to gauge the markets and opportunities? brian: my team remains very much in a risk on pose, favoring equities over bonds and roof -- preferring credit and within equities, preferring more reopening trades. we think there's more juice to squeeze with the reopening trade having a more cyclical bent. one of the things that are

focusing on our inflation expectations. we've seen inflation rates moving higher in the market is comfortable that the inflation push we might get early this year is going to be transitory. we are keenly watching those leading inflation indicators and the breakeven rates as far as the whole term structures to make sure any pop in inflation does not become more secular for something that's going to stay with us for a while. if those inflation expectations get un-anchored, the market could get unhinged. haidi: speaking of the unhinged parts of the market, i want to go to some of these names caught up in the exposure and look at the stoxx named in that block trade selloff. to be fair, the stocks were well

in play before friday but they have net exposures at the highest levels we have seen since about 2016 according to morgan stanley. is there a risk the exposures we are talking about as well as these trades being representative as opposed to being a one-off, is that something we should be looking at? brian: something to monitor is what is the positioning in the various securities in the shortselling position? a lot of people just took it for granted and you didn't have to pay attention to some of those details about not just the fundamentals of the companies but the fundamentals of how the stocks trade and what the positions look like. when you have high comfort -- high concentration with a lot of leverage, that can be a dangerous proposition.

that's why we are thinking this is more of a one-off situation, driven margin calls, high leverage, why it's not necessarily systemic where it's not multiple hedge similarly position. that is where you get into the fire sales that can feed on themselves and that type of positioning where it's much more broadly dispersed across highly leveraged players. haidi: is growth a long-term proposition? would you still be buying the dips on some of the names we've gotten accustomed to? brian: we've been focusing more on the value side as opposed to the growth side, but now that it has had a correction from its previous peak, we think a lot of

the growth names do have fundamental attractiveness to them. may be the price got a little bit ahead of itself there. after that correction, we are a little more balanced with our exposure. before, we were favoring value overgrowth, but now it has come in a little bit. provided we don't see another pop higher because interest rates grow up and real stocks go down and we feel like that may be toward the upper end of where those yields could be moving, which is where we think it could make sense for some of those darling names again. haidi: always great to have you with us. wells fargo asset management. let's get you to vonnie quinn for first word headlines. vonnie: chancellor angela merkel is threatening to exert federal control over pandemic measures after a surge in infections.

she -- she says tighter contact restrictions are needed after more than 20,000 new cases were reported on saturday. trying to free a massive container ship are digging up parts of the suez canal bank to loosen it. the next 24 hours will be crucial. an advisor says by tuesday, they may start offloading containers. more than 450 ships have backed up as the economic told grows. more than 100 10 protesters killed in myanmar in the deadliest clashes with the military since february. armed forces day in the capital was marked with a parade. the dead include several children.

sparse condemnation from -- has sparked condemnation around the world. 14 people were killed after a suspected suicide bombing at a catholic church in indonesia. it happened on sunday morning just as palm sunday mass finish. two people attempted to enter the churchyard but were stopped by security. no group has claimed responsibility for the attack. 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. haidi: scott morrison is expected to announce a cabinet reshuffle. michelle bratton joins us for a look at what to expect. canada is the latest country to be hit by chinese sanction over

the treatment over the ethnic uighur minority. this is bloomberg. ♪

shery: i downside of about 2% -- we know the ministry of commerce dumping tariffs on australian wine imports. china will impose the tariffs of more than 200%. treasury wine is the biggest winemaker known for its 10 folds brand. treasury wine coming up, acknowledging that termination, saying they will be going ahead with a detailed response plan to

retain long-term growth and strength in its business model. there is talk from the wto from some of these winemakers. beijing is imposing sanctions on individuals in the u.s. and canada. the fallout is also intensifying. tom mackenzie is in beijing. with the current tally, we talk about the business impact as well. tom: we saw beijing ramping up its response to what was acorn aided push by the u.s. and u.k., canada and the european union in the early part of last week. they imposed sanctions on chinese officials over what they said were human rights abuses and examples of forced labor.

china responded with sanctions and over the weekend, rounding that out by putting in place their own sanctions on u.s. and canadian officials and entities. antony blinken coming out saying the u.s. stands with its allies and they would increase the scrutiny on what they say the ongoing genocide and crimes against humanity. that is the geopolitical element that has played out up until saturday of this weekend. the corporate impact continues to be felt here. you have major ford and retailers -- they have come out and said they are concerned about these reports. all they have said is quite simply they are not -- that has led to a strong response from

the state media here and others online. h&m is the worst hit of these retailers. they have been taken off the e-commerce. they have been removed and when you search for h&m stores, you cannot find them. hugo boss has seen its chinese celebrity backers and their partnership with that company. the corporate impact and a reminder we are talking about this in terms of australian wine -- for foreign corporations and businesses operating as geopolitical tensions continue to deteriorate, it becomes that much more difficult to navigate this line for these companies operating in china. shery: the rest of the world seeming to get more divided over these geopolitical faultlines with iran entering the deal.

tom: you see the u.s. building up those alliances, tying in the u.k. and canada and on the flipside, china cementing this strategic partnership with iran after meeting with the russians and reaching out to the north koreans. it is division globally in terms of these geopolitical alliances. in terms of what's happening with iran, this is a 25 year strategic partnership that will involve chinese investment in oil, petrochemicals, uranium -- iranian support for the initiative and will involve chinese purchases of uranian oil. they are already buying a million barrels a day despite u.s. and international sanctions. this makes potentially that job for the u.s. in terms of reaching out and restarting those talks that much more difficult because it reduces u.s. leverage because china is

going to be supporting iran's economy. it's dividing the lines across multiple nations now. this deal is very significant. haidi: let's talk about the flipside of those alliances the u.s. is building. we just heard that the u.s. is not ready to lift tariffs in the near future on china. what else do we know about these alliances being built against beijing? tom: not ready yet to remove paris, but she -- not ready to remove tariffs, but she said they were ready to enter talks with beijing's -- this is an area many china watchers say is a central spot in terms of reducing tensions between the two. they could start conversations about the trading relationship. then you have the climate crisis -- we know president biden has invited xi jinping to be part of a virtual summit on earth day,

and that's another area where some say there is potential opportunity for movement going forward. but as we have been discussing, the u.s. has so far been relatively successful in reinforcing alliances and partnerships that were largely discarded under the trump administration and it has knuckle down and tightened trump euro restrictions on trump euro technology and that has focused on human rights and we are seeing that layout quite significantly. shery: our bloomberg markets coanchor with all the latest when it comes to china's relationship with the world. don't miss his exclusive interview. later we will hear from the chairman and ceo. be sure to tune into bloomberg radio and hear more from the days big newsmakers and get in-depth analysis from the daybreak team, broadcasting live

from our studio in hong kong. plenty more ahead. stay with us. ♪

haidi: let's get a check of the business flash headlines -- a strong rebound in the second half of 2020 -- sino tech managed to scrape a profit on the back of gains in the third and fourth quarter. europe's biggest insurer, allianz, said to be sitting the feasibility of a counter offer after a billion-dollar takeover bid. deliberations are in the early stages. british secondhand car seller,

kazoo -- that's according to sky news which says the deal could be completed as early as monday. they are expected to raise about $800 billion through private investment. coming up next, the mission to unblock the suez canal enters a prickle phase. we will have the latest on the cargo which will have huge implications for global supply chains. let's take a look at trading when it comes to the early part of the session. losses to that tune -- the aussie dollar not seeing much of a reaction. seeing a modest start to trading with s&p futures looking negative after bellwether stocks

knocked out after shattering a record course. this is bloomberg. ♪

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♪ shery: the japanese yen fall against the u.s. dollar fourth session as we head toward the japan and south korea open. let's turn to sophie in hong kong for what to watch. sophie: let's get a check on australian markets. the asx 200 adding .4% for banks. astro pay under pressure in sydney. treasury losing ground after china extended tariffs on australian wine imports by five years. gains in wellington. nikkei futures the upside this

morning. s&p em and e losing ground as we expect volatility as the u.s. opens up following the block trade we saw friday. flipping the board, nikkei 225, a bubble of 30,000 last week. soft tensing upside for the benchmark raising year and target to 32,400 and 11% upside for the benchmark on accommodative monetary policy, and undervalued yen and revising global growth as positive factors. switching the board to show you the terminal i want to say what is going on with the dollar. it is holding onto gains this morning after the best we can three, besting all g10 and em currencies except sterling, the loonie and the indian baby. the dollar closed breaking out of a five-year downtrend with one tent insight and we are watching for a golden [indiscernible] two form as well as the dollar spot index. and yields in favor of dollar

exposure until would for the greenback. haidi: salvage teams will try to reflect a massive container ship still blocking the suez canal after efforts continued to free it the number of ships waiting exceed the size of the naval fleet. our asian editor has been tracking this along with a feels like the rest of the world, we remain fixated on developments for that makeup ship and what happens to it. is there meaningful progress and we have a timeline as to when we may see it finally freed? >> we are going to find out. what we do know is the next 24 hours are going to be crucial to freeing this giant vessel that has had this major impact on global trade. what has happened, is the writer, and propeller of the vessel are fully functional. and they are expected to provide additional support during an

effort to be made in three or four hours, around 5:00 a.m. in egypt, when they will try to reflect the vessel again. progress continues to be made. diggers removed 27,000 cubic liters of sand around the vessel. so they are making progress. one of the people involved in the salvage said he puts it at 85050 chance it will be reflected during this next effort, expected to begin and 3-4 hours. shery: we have seen several vessels redirected around southern africa. what do we know of the global trade implications now? >> yeah, it is having a massive impact. there are about 450 vessels waiting now to transit the suez canal.

many others have diverted for a much longer journey around the southern tip of africa, which delays shipments and raises costs. this is a crucial global artery for supply chains. 12% of global trade goes through the suez canal. you have companies like caterpillar said they are considering airlifting products as necessary. ikea is looking at options to ensure availability of products. amazon has taught us -- has products caught up in the slowdown, so it has a massive knock on effect throughout market. i think everyone is watching for any progress and to see, once the ship is freed. then they can begin moving the backlog of vessels through the suez canal. shery: bloomberg energy asia editor aaron clark.

let's get you vonnie quinn with first word headlines. vonnie: china pick uae as its middle east vaccine hub with a deal that reduced up to 200 million shots per deal in a joint venture between sinopharm and abu dhabi-based g42. that will make the company the first to produce sinopharm shots outside china. china announced retaliation against a canadian lawmaker after allegations of human rights abuses and xinjiang escalate with prohibition from going to hong kong, china and macau. tensions with china and western countries have flared over forced labor in xinjiang. china will impose antidumping tariffs of 200% on some australian white in the next five years after an escalation of tariffs on a range of

australian products including coal, beast -- be -- beef and lobster. since preventing huawei from building its network and an investigation into the origins of the coronavirus pandemic. investigating a cyberattack involving government issued smartphones and tablets. the department of parliamentary services email services was shot down over the network due to a potential breach. the defense ministry says it was due to an external provider and connections to government systems were severed immediately out of caution. global news 24 hours a day on air and at bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: for more goldman sachs cfo -- former goldman sachs cfo is big tech should face tougher regulations similar to those for banks. seeing companies were at risk of

polluting the info sphere if they were not pulled into line. >> i think it is really important to look at regulation that is already happened, what did work and what did not work, and look at that as a possible pattern for big tech regulation. >> you speak with expertise because you were not just chief information of rn chief financial office are at goldman, but you also were setting up your own software companies related to commodities. i am interested in what more you think will be done realistically with big technology? we have such non-bipartisanship on capitol hill at the moment. >> i think there's a lot that can be done and a lot of must be done. again, i am looking at analogies from finance. i am not a computer scientist but i spent most of my career and financial services and a big part of it working with regulators, to shape the regulation. and then, especially, it was my job with many colleagues, to implement it.

so there are many patterns in the banking regulation. for instance, to name one, the banking regulators introduced an obligation, and affirmative obligation that this transaction is suitable for the customer. and the bank has disclosed everything the company -- the customer needs to know to make an informed decision. you can all take that pattern and apply it for instance to big tech and social media. does the customer know exactly what big tech is doing with the customers behavior, and the customer's data? how it is being monetized? how the platform is choosing which content to show the customer? and influencing the customer's actions? you can go from there to consider, for instance, the stress test. i would say the stress test, the see car and fast stress test introduced by dodd-frank in 2010 , implemented and expanded by the federal reserve, were

principal reason banks continued making markets and lending during this unprecedented crisis. i will look to that model, of requiring banks to use their models, to use their scenario analysis, to use to understanding of how they make money and how they lose money, to figure out how much capital and liquidity they need to hold? it would be hard but certainly big tech has the resources and the knowledge and the of course the computing power to do the same thing. so, when they are making choices for instance, to algorithmically amplify some content and get it out there, that is going to maximize emotional resonance, time on site, advertising revenues. but it has consequences. they could, for instance, pollute the info sphere and have grave consequences for the whole change of causality there. there are consequences and we found ways to tax companies for

polluting rivers. we can find ways to tax companies for polluting the info sphere. haidi: former goldman sachs cfo there. coming up next, australian prime minister scott morrison his cabinet in canberra, the path ahead. this is bloomberg. ♪

haidi: the approval ratings of the australian prime minister scott morrison continuing to suffer. of government reshuffle is always a way over criticism of handling of sexual assault claims, alleged bad behavior continues. let's bring in a spokesperson from the university of canberra. daily revelations have made headlines in the last time we saw the prime minister stumbled like this in opinion polls it was when he was in hawaii, during the bushfire crisis. can he step forward for this? is this an indication it is not just a social media bubble paying attention to these issues but the broader electorate as well come in a? -- as well now? >> trying to step forward and we

have seen a range of initiatives to improve the culture around parliament house, and more generally the government is focused on things to deal with what is an epidemic of violence against women, domestic violence. the problem is, this cultural issue of attitudes toward women is so far-reaching, so broad, and goes to things far beyond what happened in canberra, that it is very hard to deal with. also, i think the prime minister's own experience and background is very limited, and it comes to these sorts of issues. and it has taken a while for him to get his head around them and also to find the appropriate tone, and empathy, on the problems. so it is when he is still struggling with. he come at times, seems to take

a step forward, and then heat missteps, and is back where he started. >> two we need to be hearing more from the women in the liberal party? as you stay, the missteps of borrowing empathy by relating it back to his wife and being a father of daughters. and, you know, saying these minister stepped out of line and behaved terribly, would be counseled and would undertake empathy courses. it does not strike me that the public thinks this is enough. >> i think that is right. personally i think the liberal women do need to step forward and have a stronger voice in the debate. we are starting to see that. yesterday several were suggesting there should be drug and alcohol testing in

parliament house now. i do not know how this is going to go down generally among the parliamentarians but it has opened up a new front of debate. very substantially, there is this debate the prime minister opened about quotas, to get more liberal women into parliament. the liberal party has been adamantly against quotas for many, many years. they have criticized and ridiculed labor over its quotas. labor quotas have brought the proportion of women, labor women, to about half, nearly half, just under half the labor caucus. so they have been quite successful. they were brought in during the 1990's. the liberals have said no, we do not go that way, we think it is all on mirrors. now, of course, the prime minister says he is open to a

conversation about quotas, and appears to favor them. how much -- >> will australians take to the polls when they have to vote? >> this is the big question. an election is probably a year away, perhaps over a year. by may of next year. the prime minister has said he wants to go full term and i think you will have every reason to go full term now. it is a question of, whether this issue are these issues in general, hold. and continue for a time to dominate headlines, but also remain in people's memories, especially women's memories. the counterargument would be, that the underlying issues are more important when people vote, the economy, how people feel

about their own standard of living and expectations, their security or insecurity in an economic sense. and of course, the government has been successful in battling covid, containing covid. we have almost no cases although there is a limited lockdown about to be imposed covering brisbane, whether a few cases, but it is also successful getting the economy out of the recession. and a d shaped recovery. shery: the opposition would be able to use candles as ammunition that i wonder how much in terms of attractive policies do they have to appeal to the public? >> at this point, they have not released many policies. they do have a policy on childcare, which they think will be attractive.

and industrial relations policy although that is still limited. labor has today national conference coming up this week, it is virtual. and the opposition leader, will be releasing some more policies. but at this point i think labor is still looking pretty light on it, in terms of its policies. it is relying on the moment on the negative attack on the government that won't get into office. it has to do more. haidi: how dangerous is the razor thin majority the government has? that is a reason the prime minister would not push for resignation forever 11, for example. can he just not -- resignation for andrew. can he not afford to go further

on stories that come out because of the political tight rope he is walking? >> is not dangerous in terms of the fate of the government. because there is enough support for supply and confidence. but it does make governing very awkward at the moment. the government does not have a working majority on the floor of the parliament although it has a majority overall because it has the speaker. if it fell into minority government, then it just makes the day-to-day management and getting through of legislation, a whole lot of procedural issues, much more difficult. haidi: you were not the first woman who became the editor of a major metropolitan australia newspaper.

what is the role of media in this? have you been discouraged by the fact that we have almost seen split along male-female or i should say women and men, in the lines of the media, in terms of journalists defending him becoming sympathetic? in the women journalists trying to hold the government accountable? >> it is not exactly a male-female bricktown, i think, -- bricktown, i think in terms of this issue -- breakdown, in terms of this issue. although the people most actively defending the prime minister would be male. i think it is interesting, we have seen a number of very active and outspoken journalists, on this issue. a number of them, relating their own experiences. and seeing the issue in part through a prism of that

experience. and that has made the coverage of this issue, quite distinctive. shery: thank you very much for joining us today, from the university of canberra. we do have a few lines from the boj meeting, one of the most important from the bank of japan in four years. one boj board member saying they keep supporting businesses, as the boj it may changes to its framework that increase flexibility and durability. we have been watching the minutes to see which measures may be subject to changes, or details. right now we are getting one boj board member has said they must keep supporting funding of businesses. numeral also saying -- nomura saying they may have a loss from

execution of operations on the back of newsweek had locked trades erasing $35 billion from bellwether stocks in the u.s., now headed to the major opens in south korea and japan. nomura saying they may have a large loss from execution of u.s. operations. but going back to the boj minutes count -- now we are hearing the summary of opinions is coming out. another member saying they must keep extremely accommodative easing. we will get you more as a get them and plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

shery: we are headed to the japan open and have breaking news in a stock sophie is watching. sophie: we are watching muji and the possibility of boycotts over xinjiang. also stricter emissions targets saw with activism by shareholders. keeping an eye on renesys, as the company found manufacturing units damaged in a fire. fujifilm, it is to mass-produce covid antigen for sale in asia and europe.

also watching korean shipbuilders, to secured orders to build 25 container vessels longer than the eiffel tower, even as scrutiny builds around mega vessels in light of the evergiven. h&m diverting ships, given the suez blockage. haidi: one other story we are watching our reports of potential cyberattacks, both the disruption of the nine network said to be at the center of the largest cyber attempt on a media company, and australians history. we saw that when it comes to news network production systems around the country. 424 hours tv and digital productions have been affected since early yesterday morning. at the same time we see

potentially what has not been defined as a cyberattack, but another mysterious disruption when it comes to the access of email systems in parliament house. authorities investigating that situation. we know this is not the first time we have seen a particular foreign entities attack networks here in australia. shery: 2015 and 2016i believe there were high profile attacks on weather and statistics agency as well, and there have been reports in the past that perhaps china has been involved. so far we know that nine has told staff to work from home until further notice. we will watch that closely as we had to the market open in tokyo and seoul, next. this is bloomberg. ♪

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shery: welcome to "bloomberg daybreak: asia." haidi: asia's major markets have just open for trade. asia's markets suggesting muting of a surge of trade for what hit wall street hard friday and overshadowed record close for the wall street 500.

china announces sanctions for the u.s. and canada over human rights abuses and xinjiang and china's megabanks are poised to rally after delivering a surprise jump in earnings. the state back to lenders surged shrugging off islam. we are just shrugging off a slump. we are watching china ever grant. -- ever grand. selling a stake in a unit for billions of hong kong dollars, selling a stake for that amount and looking for further details given we are expecting an ipo in other business units. this is the world's most indebted property developer, still despite a lot of discounting to get to their target they are still under a lot of pressure to/debt. we have new regulations from china's regulator, the three red lines. so we are seeing efforts made,

china ever grande selling a stake and a unit for 60.3 5 billion hong kong dollars, something -- $16.35 hong kong dollars -- billion hong kong dollars. we will get you more details. shery: another company, that may be under pressure, nomura warned they may have losses from execution of u.s. operations. they are saying the damage from u.s. operations could be $2 billion. we will get you more on that story, so far we know the damage from the u.s. operations could be as large as $2 million. the other story topping the news , coming from the boj as we get minutes of the summary of opinions, coming from that

meeting, the most important over four years. we saw changes in a flame -- framework to increase flexibility and durability. one saying the yield curve should be kept low and stable. when that was announced a few weeks ago we saw the yield curve close the flattest since may. we are following another boj member saying it is desirable to buy etf's in a flexible manner. there are watching financial systems to conduct easing simply, adjusting etf buys to adjust easing and the scheme is expected to shift view on rate cut. we are watching opinions closely to see if we could anticipate or changes in the future. let's bring in sophie for a check of the markets. sophie: about these boj tweaks, a debt buying opportunity for the nikkei 225.

rating the year and target 32,000 500 for the nikkei 225 rising early in the session. the yen is on 110 level as the dollar-yet is looking to break out a five-year downtrend. keeping an eye on nomura holdings shares unchanged for now. they may have a loss in its u.s. operations. let's turn to south korea. the government holding an emergency anticorruption meeting to rein in speculation on the housing market. as ke holdings and kcal, seeing the kospi be moved to the downside. the korean won on the back foot. h&m the rally last week as the company divert three ships around the suez canal moving them around africa. flipping the board, we see oil prices move to the downside this morning as wti heads toward 60

and brett toward $64 with volatility in oil markets over speculation opec plus will hold back from easing supply curves in april at the meeting. energy stocks gaining ground in sydney with materials of the best benchmarks helping it rise for the fourth day, the government rejecting export earnings from resource players will rise to a record. to the downside, city tech and discretionary under pressure as brisbane enters the three-day lockdown. u.s. futures floor, russell em and e leading. goldman keeping its approach cyclical tilt. analysts at golden state overweight on equities. global growth and saying pro cyclicals are not yet reflecting the upside they see for the recovery. so they have the msci index rising -- rising or 15% in the next 12 months. haidi: let's bring in the

division director emma court wealth management. -- macquarrie wealth management. your view on the margin call story we have seen that gripped investors the past couple of days. we are bracing for the restart of trading in the u.s., more of a reaction. our most people saying this is a one-off to do with this one stock? is there a chance when you take a look at names and net exposure we are looking at for the stocks that this is more representative of broader hedge fund positions or there could be more pain ahead? >> i, i doubt that. i do think this would appear to be a one-off positioning. you might see a copy cap moves by some funds on a similar basis , but we do not feel we are at an inflection point at this stage. and a substantial repositioning. our review continues to be

conditions for equities and equity positions particularly focused on growth, remains well and truly intact. but you're going to have markets wax and wane, as the markets gets to have you around where we are on inflation. and help on markets are reacting to that. i would gauge what we saw late last week was very much a one-off. haidi: on inflation you think this is the market getting ahead of itself as well? that the value rotation is not so much an inflection point. if that is the case does that mean if you continue to see dips in growth you would be encouraging to get back in? >> look, i think we are definitely seeing obviously some rotation. and value has outperformed growth over the past month or so. but i think the market, the market was getting ahead of itself in growth and where we saw valuations getting pushed pretty hard, particularly around the tech side. equally so the market is

probably starting to get ahead of itself in regard to concerns on inflation. and if you have a look at the latest u.s. numbers, obviously you are seeing services rise but goods pricing down. equally so, most western or developed world economies are suffering significant overcapacity and labor markets. and until you start getting wages growth really getting traction, we do not think the issue, the be concerns for inflation are warranted. we do think inflation will slowly but surely creep toward central bank targets, let's call it 2%. but i do not think this is something to be overly concerned about. it is as much a factor of economies returning to some form of normal, as it is in terms of normal growth, as it is that the structure of the economy is trying to improve. that includes obviously, employment. so we do not see the significant inflection point with us just

yet. having said that yes, we are basically taking a, by the depth, -- buy the dip. but markets are moving around and as such we will see corrections we think most of those corrections are likely to be fairly shallow. shery: it i have to ask despite the fact that you're not worried about inflation's what else do markets have to look forward to a 21 when given the rally already, the s&p 500 rally at a record high, your priced perfection, and if the economy grows better than expected you are about monetary tightening? >> again, we have to put this in context around timing. whether monetary timing is inevitable, we certainly do not think that is the case this year or perhaps next year. clearly central banks have already given an indication. the fly in the ointment in that view is clearly if inflation does pick up far greater than we

or the markets anticipate than the response of would be looking at easing off qe and possibly tightening. but we do not think those are the conditions ahead of us at this point in time. clearly we have the potential of regulatory authorities basically entering are trying to ensure there is not an excess or over enthusiasm and asset prices, and i am talking about stock prices and property. we do not think we are yet at a position where central banks are going to start raising, they have given strong indication that the heart inflation targets in a look more like an average level. sot again gives us some shery: great to have you on. let's get to vonnie quinn with first word headlines. vonnie: teams trying to free the massive container ship ever

given saying the next 24 hours will be crucial. they managed to budge the ship 30 meters saturday. and a company president in egypt says if it is not a float saturday they may start to offload containers. ships are backed up as the economic total gross. china has picked to the uae assets middle east vaccine have been a deal that will see the country produce up to 200 million shots per year in a joint venture between sinopharm and abu dhabi g42, which starts production at a new plant later this year. the deal will make the uae the first country to produce sinopharm shots outside china. brisbane will enter a three date lockdown starting monday due to an outbreak of coronavirus, after fort locally transmitted cases. residents will only be able to leave homes for food, exercise, such work and medical reasons. mask wearing will be compulsory and home gatherings limited to

30 people. global news 24 hours a day on air and at bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: still ahead, logistics real estate developer as i chair joins us on the company's latest results and business strategy as it navigates covid's impact on logistics. next, china adds up parliamentary committee on human rights its list of sanctions taken on its own officials over questions on that uighur minority and xinjiang. this is bloomberg. ♪

♪ shery: a tussle over human rights abuses in xinjiang escalating, beijing hit back with sanctions on the u.s. and canada after coordinated moves from washington and allies last week.

corporate fallout has spread. let's bring in our executive editor. >> the latest is we have had sanctions levied by beijing over the weekend spreading. this is a reflection of joe biden's differing approach to versus the trump administration. he is getting allies on board to act together and this seems to be the way beijing is going to respond, to individually sanction all the countries working with the u.s. to put in place measures against china. haidi: at the same time we have seen china signing this 25 year copperheads of strategic deal with around. -- iran. this is going to ruffle feathers in washington more. >> it certainly will. worth noting this deal has been in discussion since 2016, so it has not happen overnight. but it speaks to the broader picture, which is about rising china, growing influence across the world, especially in the middle east.

china is now the world's biggest importer of oil. so, obvious strategic importance for china in the middle east. haidi: we have also seen, in terms of the geopolitical preference, picking uae as that middle east vaccine hub for the chinese covid-19 vaccine to be manufactured there. >> i think it is interesting, because we are going through this vaccine nationalism. you have india and europe pulling back on how much in terms of vaccines the rt. the ux -- the u.s. has not exported any yet and this is an opportunity if china gets a factory up and running, gets vaccines pumping out of their, for china really to multiply its influence in the middle east. haidi: our china executive editor with the latest. next, the latest on classes between police and protesters in myanmar over the weekend -- clashes on police and protesters in myanmar with dozens more

dead. this is bloomberg. ♪

shery: nomur fallinga 10%, its worst day since march, 2020, after they said they would have a charging u.s. operations that could reach $2 billion, based on market prices as of march 26. they warned they may have incurred a significant loss of rising from transactions with the u.s. client. they are evaluating extent of the possible loss an impact it could have on consolidated financial results. right now the stock seeing its worst day in a year. haidi: as we have been reporting, 110 protesters were reportedly killed in myanmar over the weekend in the deadliest clashes with the military since the february

coup. our asian reporter has been tracking development. you would seen video circulating, a really terrible development, particularly as we are talking about children killed. >> yes, that is right. saturday was a holiday and myanmar. -- in myanmar. where you would see country sending notes of congratulations , it has been country after country sending these notes, calling for the military, a disgrace. seeing these acts of violence should stop right now. at least114 people were killed on saturday alone including civilians taking part in demonstrations. the violence has gone beyond protests with security forces entering houses. and shooting into homes. so, the violence has gotten

quite bad on a day-to-day basis. shery: what sort of international pressure are we seeing, and is it enough? >> we are seeing the u.s. and allies, particularly europe, reacting with targeted sanctions. i do not think there's a sense at this moment any wider sanctions would be of benefit at that would plummet millions of people further into poverty. but targeted sanctions could be useful, as the military has a huge business wing, and to companies it runs. -- 2 companies that runs. thursday you have you can u.s. hit that two major holding companies owned by the military. that would block millions of dollars, already, it was reported last month that the u.s. was able to block the military from gaining about a billion dollars, from withdrawing that kind of money.

so this is a country that does not have a lot of cash on hand. so that useful. -- that could be useful. but for the extent it could change the trajectory of protests and cocktails it is too early to say. shery: i reporter in singapore. the man becoming the main opposition voice in sit -- since the february coup has called fort rohingya to be reintegrated in society and more pressure from the international community to oust the military junta. he describes himself as representing that myanmar parliament to the yuan and spoke with -- two the united nations, he spoke to the to haslinda amin. >> taking targeted coordinated sanctions, economically and diplomatically. these bloody words, these bloody

wars will stop. and china, our neighbor like india, and our dear brothers and sisters in asean, they have the power to stop it. they have the ability to stop it. so we are asking them to stop it. because if it is too late, it will come into an uncontrollable situation. it will become out of control. haslinda: you are talking about the international community. how about china? what is the role of china in this? what what would you like to see china play? >> i believe china has the power to stop these military generals at they really want to. the economic is enough. without their help, they want to see myanmar stable, they want to see it stable myanmar economic stable, stable myanmar politics. it is good for china to have stability and i have no doubt they want to see that happen.

these military to serve no interest for china, these military who serve no interest for india and our aseans. that means we all have to come together. haslinda: the united nations envoy to be on our is urging people not to take up arms against the junta, as that may perhaps justify the use of violence against the people themselves. what is the risk that the people of myanmar may end up picking up arms to defend themselves? >> that is why we are asking the united nations security council to quickly activate responsibility to protect. this is the u.n. charter that calls r2p. we are asking to the united nations secretary general, the united nations council, to activate so my people will not be able to defend themselves.

now they are at the point is that, these protectors, who should be protecting the people of myanmar, are not protecting the people of myanmar. another side you end up saying please do not protect yourselves, please do not protect yourselves, it is not going to work. it is not going to work. now my people should be given the chance to protect themselves. and they have the right to protect themselves. of course i am not saying take you arms and fighting. that is not the way. of course, reforming military institution as a whole is important. that means send -- the central army of malmo has become essential and all these military, men and women in uniform would be asked to come to send the army not attacking the people anymore. haslinda: this seems to be a reversal in terms of the attitude toward rohingya, the people of myanmar used to stand behind the army on the issue of

rohingya. has there been a sense of regret? now that the situation has reversed? >> i, they have been waiting for the time for me to call out rohingya brothers and sisters my family. that we are one family, one nation. so we say, enough is enough. now we have got only one common enemy. that is these military generals. so once we get a center of democracy, the union of myanmar, everybody will be free. everybody will have a future. but we have no future, as long as there is military dictatorship. the people of myanmar, including out rohingya brothers and sisters, have no future, as long as there is military dictatorship in my country. haidi: hosteling to almond speaking to dr. sasa who

describes himself as representing myanmar parliament to the united nations. offering 45 million shares in a block trade by morgan stanley. whether this is linked to the large block trade credit on viacom said to be offered via goldman sachs and morgan stanley and that added to selling pressure. we heard earlier from nomura following the japanese session saying they could have incurred a billion-dollar loss arising in transactions with the u.s. client in a similar transaction. that comes on the back of an extra ordinary 20 billion-dollar wave of block trades friday that rattled global investors. we are looking at viacom continuing that decline, as well as the other media company affected seeing worse daily losses friday despite the broader s&p closing at a record high. we continue to monitor the situation, the latest with the 45 million share block offered by morgan stanley.

this is bloomberg. ♪

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and there are over 20 exercises to choose from. get gym results at home. no expensive machines, no expensive memberships. go to aerotrainer.com to get yours now. this is daybreak: asia. i am vonnie quinn. beijing is enveloped in a hazardous sandstorm for the second time in two weeks. air pollution level search of their upper limits as the sky turned yellow. authorities blamed drive hit mongolia for the sandstorm. residents were urged to stay inside. several other northern provinces were affected. china will impose and dumping tariffs on more than -- on australian wine. it comes after an escalation of tariffs on a range of australian

products including beef and lobster. ties between the countries have been strained since canada banned huawei from building its 5g network. now -- the state recorded for new locally transited cases. residents will only be able to leave their homes for food, exercise, and medical reasons. home gatherings will be limited to 30 people. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery? shery: we are half an hour into trading in japan and south korea. let's go to sophie for what to watch. >> a mix now, aussie shares now

losing some ground. some banks under pressure, cba losing ground along with astro pay. miners on the up. the kospi lose about 2/10 of a percent. samsung one of the biggest rags in seoul. piercing shipping stocks rising. -- we are seeing shipping stocks rising to a japanese stocks are on the rise. the end is holding below 110. keep an eye on a big outlier in tokyo, dropping as much is 14% this morning. 50% -- 15%, actually. after a significant loss in its u.s. unit, a potential significant loss. pulling up a chart on the terminal as we near the end of march. take a look at how value stocks are performed in asia.

they're are sent to beat their group peers by the most since 2000, the.com era. there are still pockets of opportunities for reopening trade. the code of emerging as it saying it is possible for the value rally to continue in light of the large valuation disconnect we are seeing between growth and value in asia. thank stocks are trading at about 10 times their earnings, while tech is trading 19 times. haidi? haidi: we will keep an eye on keep -- on key names out of china. china's oil refinery posting a lawyer profit, a strong central have. icbc china construction bank, bank of communications all posting more than 40% surges in their income in this.

. what drove those results? what was key that jumped out? >> obviously, the fast recovery we saw in the chinese economy, the latter part of 2020, as china brought the pandemic under control. part of it was so the banks were forced last year to dole out billions in cheap loans which weighed on their profits. that eased up at the end of the year. allowing them to resume more normal business at the end of the year. after that, there was a norma's liquidity sloshing around in the system. it was an environment at the end of last year. shery: we are hearing authorities might be dialing back on all of the easing and support. what is next then for banks? >> that will certainly weigh on demand. but we are also seeing rising interest rates, which in turn will help them. as the economy expands, the

expected six plus percentage range, we are probably at a consensus now that they'll manage to deliver -- now we saw during the fourth quarter, but around 6%, 7% earnings growth. analysts we have spoken to see more than a 45% upside in the bank shares this year. given that the banks -- the big chinese banks, the -- their price-to-book valuations remain near record lows since they have been out of favor over the past couple of years. shery: jonas boardman there in hong kong. another big homecoming debut in the coming hour. chinese streaming platform operator billy billy will begin trading. shares a phone is much us 6% in gray market trading already.

let's talk to our equity capital markets reporter, julie if you're ready. julia, is this indicative of the broader markets? billy billy is not gaining investors attention so far. >> it is more the former. china had a pretty bad week with adrs in the u.s.. billy billy in the u.s. dropped almost 11%. it would be hard for it to do well today. it is definitely more a reflection of investor concern over the regulatory fears for china tech. we had the news that china is proposing to establish a jv with its local tech giants. this is weighing on sentiment. there's also the news last week that the sec is going to start influencing the delisting law -- the law forcing companies that

give american regulators access to their audit books. this is been a long-standing issue with china. the penalty for not complying is delisting. that will impact names like alibaba and billy billy and baidu. it also because the drop in prices. it is more a reflection of these events, this backdrop, rather than billy billy itself not being a popular listing. haidi: we'll see baidu and blocks of tencent music being offered. is the block trade story, the volatility we see in the u.s., also expected to carry over when it comes to sentiments on chinese listings in tech? >> yes, it could. that is less a systemic issue, given it affects a specific fund and a specific name that were

held by this fund, but given that if that continues, if that liquidation continues, and that will be expected to continue to weigh on china tech names, and also just the general stock market. that could continue, actually, for a while, depending on how long the story runs. it certainly was not a good week. it was not a good way to end the week for china tech. haidi: our equity capital markets reporter ahead of the open. billy billy in the next hour, the chairman and ceo is on bloomberg tv at the start of trading in hong kong. this is bloomberg. ♪

click csr easily posted full-year results. the data center market. the company said the market grew they can -- pandemic as key tech trends, e-commerce growth, grew demands. joining us from singapore is the chairman. will you be able to quantify it all what this data center opportunity means for your business? it is great to be here. thanks for having me.

certainly we see the data center market opportunity as significant. asia is now the second largest global data center market, soon to be the largest in the next several years. if you think about obviously smartphone penetration across asia, all these work from home needing to store the data in the cloud. we are entering a new. , really an inflection point about size growth. the landgrab phase for data centers across asia. we think esr's business, which is really predicated on its local markets, building projects, engaging with our clients, we think this is perfect to expand the business and extend intubate -- into data centers. shery: how much of your business you expect this to be? >> because capital values for data centers are even larger than logistics, we think this could really grow in size and scale over time to certainly a

meaningful contributor to the group. that being said, our core business for today ads for the foreseeable future is delivering a new economy infrastructure, primarily modern warehousing, to support the growth of e-commerce across asia. haidi: you reached 30 billion under management sooner than expected. what is the next milestone for investors to look ahead to? >> we try to take it one year at a time. as we look at this year, we also have to start from what happened over the past 12 months. despite a challenging environment, a really exciting 12 months for esr. we achieved rescued -- records not just in a um, but we released 2.3 square million -- 2.3 million square feet of space. we feel good about where we fit. we think from a fundraising

perspective, obviously, as a funds management business, we expect that to be as strong or even stronger as we head into this year. mainly because investors, this is kind of a once in a generation change and shift away from old economy real estate and now looking into new economy real estate. this is where we are uniquely positioned to act as an allocation tool probably's global institutional investors who want that exposure to logistics at the expense of some of the old economy real estate sectors like office and retail. haidi: what does the mature phase in your business look like, in terms of when you stop looking at absolute growth? >> it is so nascent still in asia. there are still more water -- they're still more modern warehousing space in the state of california then in all of china. roughly 30%, 35% of total reis

-- total retail sales in china coming from e-commerce. look at other markets, australia and japan, still hovering around 10%. we have a long way to go to catch up to some of the more mature markets. as we look out, we think this is a multi-decade transformation and we still are in the early innings of that. shery: we talk a lot about supply change -- chain dislocation because of the pandemic or recently a canal blockage. is there anything you see on the ground when it comes to logistics? >> we are seeing it from manufacturers, whether it is the fmc g clients or others. ultimately they are looking to go from a just in time inventory model to a just in case inventory model. they want to preserve more goods on the ground in the local markets and we do not think that that is necessarily going to change. this is a real change in philosophy and we expect that to continue post pandemic for

situations like you just described. shery: in terms of a recovery, because we continue to talk about all of these export growth and demand rising across northeast asia -- are there any particular countries, because in all of them where you are, are you seeing the unique demand or some changes in the trends out there? >> first and foremost, for esr, probably close to 91st -- 99% is on -- 99% of our focuses on domestic consumption. our big three is china, south korea, japan, all well-positioned coming out of the pandemic. china has been first out of it. we have seen the strong activity there. we really do not see it abating at all. the strength from our tenets is very significant in terms of needing new space. these are big occupiers. typical e-commerce client requires three times the space

is a brick and mortar retail client. from our perspective, the key is to continue to play into the recovery and growth of the market. we think e-commerce will continue to be very strong as a part of that. haidi: great to have you with us. the chairman of esr there. be sure to tune into bloomberg radio to hear more and get that in-depth analysis from the daybreak team there. we are broadcasting live from our studio in hong kong. listen by the app or bloombergradio.com. lots more ahead. this is bloomberg. ♪

shery: quick check of the latest business headlines. citing the most in nine years after it reels it may have incurred significant losses some from transactions with a u.s. client to the tune of about $2 billion. in a statement, the company said it is evaluating the extent of the possible loss in the impact it could have on financial results. the japanese brokerage also cancel plans to sell dollar denominated bonds. europe's biggest ensure dutch insurer is said to be studying the feasibility of a counter offer. deliberations are at an early stage and bloomberg sources say they see a lack of synergies.

universal pictures thriller "nobody" took the top spot at the u.s. box office, generating $6.7 million. it benefited from the reopening of cinemas in los angeles and new york boosting a business still reeling from the pandemic with half the country's leaders still close. international box office outperform. "godzilla versus kong" netting hundred $40 billion in ticket sales. -- $140 million in ticket sales. this is according to sky news, which says the deal could be completed as early as monday. cazoo is excited to raise $800 million through a private investment in public ethically -- equity.

>> still the boy check is let -- to take off in other parts the world. >> some of the biggest tech names in asia may go down, but if and when they go public, the big question will be where. in this region, only south korea and malaysia allowed blake check sales. japan is being urged to consider them by a government panel while india's at the feedback stage of an imposed framework. that leaves singapore and hong kong and, and they are lagging, which makes the usa more viable option. here the exchanges seeing a week ipo pipeline. only seven companies have debuted over the past seven months. this is provided that market participants give their full support. herein hong kong we might see the change take a more cautious

approach. bloomberg intelligence is saying could list capital raising by swing 6%. tech giants like ansi could be one of the companies -- ant could be one of the comedies. beijing is preparing for tougher listing rules on the mainland. hong kong is readying its own spac listing framework to be ready by june. let's go to our finance regulation reporter. what would this mean for hong kong is a financial hub? >> that would put the hong kong exchange in the run against its rivals in london and singapore in a very keen competition. some of the biggest including adrian chang, backed by li keqiang, are preparing to raise in the u.s. shery: what will the plan look

like then? >> i've learned from sources that the hong kong regime would not look exactly like the u.s. acquisitions by -- will have to meet the existing standards for ipos. they are think of special conditions for sponsorship, including a record of managing money. [no audio] haidi: i'm curious, why would authorities need to put the safeguards in place? >> it has to do with what hong kong went through. the regulators and the exchange took years. it was seen as a hotbed for stockman if you. -- stock manipulation. that is why they are threes are

taking a conscious approach. -- the authorities are taking a conscious approach. they will introduce a long-term framework. circling back to the timeline, it could still change. haidi: what sick a look at the state of play when it comes to market. wall street providing a tenuously for the start of trading. we saw reports of block trades being offered for viacom, cbs one of the stocks that fell by daily record on friday. the nikkei being on the upside, up 7/10 of 1%. the downside falling by over 10% due to the potential liability to the tune of about $2 billion as a result of a block trade. we are seeing the kospi trading lower by about four tents of 1%.

-- 4/10 of 1%. pretty flat state of trading when it comes to city stock. new zealand up by about 6/10 of 1%. shery: take a look at futures right now. a big week for china. we have the march pmi numbers coming out. profits seeing tripled digit growth, it's -- 179 percent jump in the first two months of the years. futures are pointing upwards when illustrated. the offshore yuan at the moment holding steady at 654 level. so watch for those pmi numbers. they will show both production and services making project -- progress in the recovery we are seeing. watch out for taiwan when it comes online. futures pointing higher. the taiwan dollar posting its first weekly decline since

january. they were way down by sustained equity outflows. watch out for the market there. incredible strength for the taiwan dollar being under a little pressure recently. u.s. futures under pressure right now, watching out for those block trades and how that affects the broader market. a new yuan tool for bloomberg clients. it has just launched. look at alive index that tracks analysts takes on the pboc daily reference rate. click on this chart and you will be able to follow the market pulse. haidi: shery, as we know, cyberattacks becoming more common. private comedies are not immune to that. -- companies are not immune to that. nine networks -- their production and broadcast facility's were interrupted by

cyberattack. it could have been a work of criminal sabotage or the work of a foreign nation. shery, it comes at the same time as we hear of disruptions to parliament house emails and other internal functions. they are not calling it a cyberattack at this point, but investigations are underway. shery: we have seen cyberattacks in australia in the past. 2015, 20 16, high-profile attacks on the government. there are ports in the past that it was coming from china. -- there were reports in the past that it was coming from china. the defense -- the assistant defense minister saying there already 50,000 cybersecurity attacks last year. this is becoming very common, isn't it? haidi: that is it for daybreak asia. arctic coverage continues this week. -- market coverage continues this week.

shanghai and shenzhen coming online in the next half-hour. "bloomberg markets china open" is next. this is bloomberg. ♪

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we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xnitymobile.com/mysavings. >> happy monday. it's 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i am tom mackenzie. >> i am david ingles and we are counting down to the open. your first session of the week on the chinese mainland and here in hong kong. new risks on the block. hong kong and mainland markets sent to react to the shocking wave of mega