>> join in now is -- now and see your best self in the mirror. ♪ >> welcome to daybreak australia. we are counting down to ages h as o. the j.p. morgan chase bank may take a $2 million hit from the vaccine rollouts.

investors are eyeing stimulus. the coronavirus origin report said they adequately analyze the possibility. china finalized plans to control the outcome of the home selection. this is the picture on wall street, banks bouncing back from the fallout, but 10 year yields leading a 14 month high. we are now seeing u.s. futures unchanged at the open market range. the upcoming announcement by biden for more spending on his infrastructure program. wti, open class panel talking

about the oil surplus will be mostly gone in the four-plus meeting on thursday. it is the last rainy day of the quarter for asia as well. >> were set to rev up the last trading day of the month in china with a mixed session. the video shows three manufacturers confidence jumping to a mandated high. it allows an effect for students to see 50% of the earnings put into a dividend. the story is footing the yen at the bottom of the g10 heap. you could be able to play it by

the end of the year depending on the pace of the global recovery. protests in the u.s. -- the worst quarter of 2018 except to -- generally stair, credit markets have been credit -- have been fairly contained. bonds have widened on the fallout, heidi. heidi: all bracing for major losses. the latest developments in this drama so that people can eat and

could be up to $10 billion. >> the team of analysts say they could see losses ranging from -- which appears to have gotten out in front of the pack. mitsubishi, usc, those continue to be impacted. the japanese banks have signaled losses. stocks and bonds getting slammed. a person close the matter saying the bank spent monday trying to calm its shellshocked staff and green so capital is another

large firm that collapsed earlier this month. one of the largest global investment banks, do traders now view credit suites as the riskiest of the bunch? what is now being viewed as one of the biggest margin calls of all time. some are saying they lost it to wipe out an entire year of progress the bank. one week losses were significant going into monday. we are seeing a lot those impacted stocks that were dumped into the large trade selling printing. rebounded in late in session. >> tells about the japanese

because we also know that japan's biggest banks got caught up here. >> the whole debacle contributed a 62 clint -- 60% decline cover that alone knocked off 3.5 billion in market decline. going into last week, the american arm has earned the most outside of japan. we also know that mitsubishi, usg has said it is estimated that the potential 300 million loss, notably, we are hearing from goldman sachs that they are lost be somewhat material. they've also escaped major losses, these banks were perhaps the quickest to unload their position. back to you.

>> all this is because a lot of volatility in the u.s. market, stocks fell for a second day. the cascade of trading losses, what does this really tell you about risk and leverage in the market? >> it's another example of how very low borrowing costs cause people to go out by the risk curve. i think the impact is going to be focused on the banks. they are taking big losses here. there's not going to be a lot focus on family offices. it's the task spare money that is at risk. for the banks to ever manage this, one they will be worried about how they lost and then concerns about have two grown the business.

>> breaking on the bloomberg terminal. biden's proposal has a global minimum business tax, he also has an infrastructure proposal that includes a 28% corporate tax break. we do anticipate? -- biden to come out tomorrow with an -- of two $4 trillion of spending here in u.s. -- of $4 trillion of spending here in the u.s.. jim, i know you've been looking into infrastructure, what happens if you get a tax hike with that extra spending? i think both of them are likely.

president biden understands what he needs to be able to do to get things through conference. the force bill would be done in the first half of this year. the of this agreeable topics likely be focused through the reconciliation process. there has been a floating of .5% or 28%. that will need to be worked into market expectations. thankfully, if it comes to pass, and it is at a time in the economy is doing well and earnings are strong. likely at this time the economy seems to be firing on all cylinders. at what point does dollars

strength to become a headwind for equities? >> if it continues at this pace, it could be. the last place you want to use part of your risk budget is where many with coronavirus want to go. we've seen them strengthen, we've seen european strengthen, and the one group that has been hurt has been -- food so continued dollars strength throughout the year, week -- it might be looked at a little salve on the concerns about inflation. >> at what point do you see that

closing and into the opportunities get us attractive? we still think there is room to run, but having said that we don't want to make a majority of the stocks here. there were several behind the growth stock, technology, that make them a part of the loan term. it could easily go on for a couple of years. not our expectation, but if it does, it's an further benefit to buy stocks, especially financials. >> look it over to vonnie quinn who has the first word headlines for us. >> the world health organization report on covid-19 the mission

to study the virus was to quit to unknown -- several governments and forcing the access provided by beijing. this after saudi arabia suggested the figure was too high, they moved comes through for a key meeting on thursday to discuss production levels from may. the group previous meeting cautious spread to the right decision. the angry a set to last much -- last much longer. but asking questions about the

ship, 40 mile-per-hour wind best and these. blaming the wind and possible human and technical errors. china finalize a plan making sure it controls the outcome of hong kong's elections. legislative the council -- the city for chief executive. and what help government will focus on key issues. >> that case, very high and still rising prices. global news 24 hours a day with

-- i am vonnie quinn, this is bloomberg. -- >> coming up next, it pick up its expected in both manufacturing and non-mean factoring.

>> when it comes to your busine, we will stop at nothing. some of us are not the same.

our close shave comes from our five engineered ladies signed to stay sharp. for those of us who do not want just the same, harry's, available in-store and for -- walmart.com. /and find you a new lower rate. >> china's recent recovery is likely toppling the u.s. is the world's biggest economy. we kind of alluded to this, the

u.s. not coming from a position of strength. help closest china to overtaking the u.s.? >> some are saying it will be 2028 before china overtakes the u.s. is the world's largest economy. of course, in 2020 china was the only major economy that posted growth. last year used all china overtaking the u.s.. it share of global trade actually increased as people around the world board of masks and ppe. time and trends are on our side. he said not on his watch. the china will not open to make

in the world's largest watch. china is not sitting back. is ensuring that it focuses on spending. a couple of things going against china, death and demographics. a lot of it will come down to the next year or so and if they can get any of this push through. some economists looking as early as 2020 six. coming up get another indication -- local times is expected to share an improvement. frictions over human rights only

becoming more acute. >> that's right, the u.s. -- putting out its annual human rights report. china was front and center. the report accusing china of crimes reinforcing -- the u.s. labeling that treatment as genocide. china has denied that is the case. they describe them as vocational sensors. they actually cited -- as an example of how the u.s. may act to punish human rights violators. >> china's economy leader will

be speaking. that pick up in the recovery and improved outlook in the u.s. has -- growth this year will be higher than its january projection of 5.5%. while 2022 will also be higher on the forecast. president biden is expected to unveil a massive infrastructure and jobs package, a cornerstone of his back your that could total up to four dollars. -- total up to $4 trillion -- a cornerstone of his bring back

america plan that could total up to $4 trillion. >> we have the details next. this is bloomberg. ♪

♪ >> another animal is facing fire

and the white house camera faulting data and access provided by china. let's get more from our health care editor, michelle cortez. which we know about this latest comment from the who chief on the origin of covid?

>> the issue here is how aggressively and openly the experts were allowed to dig into the origin of the coronavirus. part of the issue is what they were actually asked to do. some people wanted them to have done an actual investigation. the problem is they did not get good access or unfettered availability to ask the questions. that is what we are seeing from the who. they did not get full access and why he does not think it is likely board -- likely that it was a leak out of a lab in wuhan.

there is speculation or belief that this did come from a bat or another animal. >> we have a definitive answer as to the safety profile of the astrazeneca shot? >> great segue. with science and all of these topics it is difficult to know. the problem here is that clots that are occurring are happening at pretty low levels. it is very difficult to prove that the vaccine is not responsible for these clots. we have seen both canada and germany putting restrictions on

the astrazeneca vaccine. there are lingering questions about whether or not the vaccine is entirely safe. the problem with vaccines is that you give them to put who who are healthy. the intent is to protect people against a theoretical list that could come in the future. that is the challenge. >> because of the pandemic we did have a moratorium on h and one b visas. this was an action five former president trump and affected h-1b visas to hire foreign coders and engineers, but predominantly used by tech companies and indian tech companies and indian grant --

grants please. this decision is expected to squeeze the business to some pressures. more to come. this is bloomberg. ♪

>> taking a look at the day ahead in australia. changes will allow banks to pay up to a maximum 50% of their earnings in dividends. indeed said welcome home

arrangement -- work at home arrangements continue to remain popular. the international monetary fund will upgrade is forecast for monetary growth. economic expansion this year will be higher than the gene very projection of five-and-a-half percent. good for 2022 will also be higher than the forecast of 4.2%. the release a update report on april 6. signaling continued tensions with beijing under president biden, the annual report also reaffirms the decision to label

it genocide. citing economic sanctions and visa restrictions against chinese officials as an example. healthy dot -- trial for derek chauvin wrapped up its second day in minneapolis, the prosecution said the city police chief will headline the case by using excessive force against unarmed black man. the case spark widespread protest. new york mayor bill de blasio is bowing -- bowing to bring to justice -- bill de blasio is vowing to bring to justice

the man seen on video beating and asian person. another experimental spacex rocket has suffered a mishap during a test flight, which sent smoking debris crashing onto the launch site. it lifted off heavy fog on text -- in texas on tuesday. it went up 10 commenters before shutting down its engines to come back down. elon musk says the company is still trying to work out what happened. china is finalizing a sweeping plan to change hong kong's election laws.

stephen, not much of this is really a surprise new this is coming. what do you see the impact being on the city? >> that depends on who you ask. if you ask an established lawmaker or those in hong kong who can afforded. they say it will help the local hong kong government govern because they went to the string tactics of the former pro-democracy and the protests that culminated in the national security law.

they are likely to say this is a death blow any dream or promises of the ultimate a that you have written into basic law, and that is universal sufferance, and also for the chief executive. clearly, beijing wants -- by some of the lawmakers in the legislative council as well as protesters. they claimed they were being obstructed and prevented the hong kong government from governing and getting to the deep rooted issues including landform and the high-priced of living and the rising wealth gap. we are going to see the number of the chief coached seats increase from 70-90. the number of other seats will be reduced to either 25 or 22.

generally though, those 20 that will be generally elected must be approved by a very powerful, small vetting committee of national security police officers, so it is not really indirect election because the candidate has to be approved by this very powerful body not less than 10 people. a lot of questions still to be answered and who will be on that extremely powerful vetting committee. the largest electoral committee will be raised as well with the largest members tonight. they've claimed 40 of their lawmakers into the legislative council. it does not exclude pro-democracy canada as long as they are the communist party of

china. >> he spoke to former hong kong executive, what did he have to say? >> he obviously was in support of this. he chose not to seek a second term, gave it away for carrie lam, but one of his big tasks was land reform and his vision of creating a lot of new land and to tackle the deep-seated issues of the high prices of land. now, and a wide-ranging exclusive interview that lasted a half hour, here's a cross-section of a few of those that we talked about, and we begin by talking about that very powerful vetting committee and who should be on it. >> there should not be any

conflict of interest. >> i covered the protests when you are the chief negative, and there was, by my account, the vast majority are not calling for independence. it was a very small minority who wanted that. how do you reconcile to those people that we have gotten this far in they are paying the high-priced, that they are no longer able to have the elective seats in the just leach of counsel. the majority of people walk by the central business district of hong kong, but at the same time they wanted to decide the powers

of central authorities and did not want to follow the basic law. you're going to be teaching a class on patriotism and politics to the dav i, i believe. we are all patriots. you belong to a country and i belong to china. but i can criticize my government. i can too. she said it, the administration pussyfooting around the issues. to do something about the process of land conversion and

changing from an existing land use to housing land use. we need to go to a planning board and somewhere in the process it will be stop by a judicial review. >> what should this government do to get beyond where we are right now? >> beyond covid-19 i think we need to do lies the opportunities and potential the mainland offers us. this candy store on mainland china offers much more than just chocolate. >> it's got to be more than a sugar high though, sir. >> and other parts of the

country, we are pre-quiet about our successes because they do not want composition. and if we went to the beach, what would be considered off the track beaten places. i know investors and hong kong people are doing very well in different parts of the country. >> what would it take to be a successful chief executive here? >> hopefully with a counsel, that these charges -- the relationship between the executive and legislative council would be more reasonable than the government would be

able to do the job. >> obviously that was a conversation with cy leung, a number of issues. in the coming hours we will dig deeper into the electoral reform changes that are coming down the pike. >> coming up, we see that strength continue in the dollar trading at the highest levels of the year.

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>> warning of inflation, what exactly are they saying? >> they're keeping the risk on until they see global growth at over 6.8% this year. when it comes to inflation, you see markets staying focused above side risks. over the next 1-2 years over a -- warning of a potential headache. >> inflation creeping ever

higher. are there concerns? >> ian policymakers -- they don't see a fed rate hat -- hike until the second half of 2023. inflation pressures may see more challenges central banks to get ahead with sub priming without hurting their economy. forecasting other 225 basis points where other -- it's -- in emerging countries. key to this picture as well,

heidi, as e.m. scammer p the end 2020 performance. there is now stretched positioning heidi. >> the roaring inflation heard of 2021 has set the greenback. that the euro's high levels since mid-november. biden's next leg of the splint -- his speech bending plan we are expected to hear this week. just -- this chart illustrates the points we are making. the hyatt at d.c. euro. are you concerned that on the one hand you have the start of an expected vaccine rollout, on the other hand there are concerns of a full wave a virus?

how is display comeback kid story of the dollar? >> we do -- we are expecting the dollar to be sustained in the near term. also, concerns that we might be on the cups -- cusp of a fourth wave of infection, and i want to add to that and say just because it does -- it raises concerns, and maybe global growth rebound -- and given that the u.s. dollar tends to be a cash with full currency, it tends to rise when global outlook softens. >> what is that mean, because

when you have a little bit of pull back when it comes to commodity, what does that leave? >> we have seen a little bit of a pullback in recent days. we are still relatively bullish in terms of the way we see under the remainder of this year. they're still very high levels, and in fact, we think the trillion dollar currently eight -- based on where their prices currently are. >> commodity pricing dependent on what happens in china. we have seen significant weakness as of late, but this

part on the bloomberg now showing on top panel the estimate from analysts for the yuan and the cap between the estimate and actual reference rate has actually lowered, gone to almost nothing. unless estimates have become much more accurate, what are authorities thinking right now? >> be general trend we are seeing out of china at the moment is that chinese officials are trying to loosen capital controls. trying to make it easy to take money out of china. part of loosing those capital controls and more freely. not free range, but be -- that

is one of the reasons why we are forecasting that the u.s. again h and follow and get back its recent gain. that is because we are seeing a pickup in foreign demand, and that is how it can support the dean h. the economic recovery is well underway and we 20 a meeting. expected to return to a downward trend and that would be a real weight in u.s. team. >> what do you make of volatility going towards quarter end? yes, we are expecting that we could -- and the in.

however there is a little bit of concern or stipulation that you would -- when we look over 23 years of data, we don't see any big -- what we see is volatility , so we are expecting an increase volatility outside of the financial year, the yen will be continued to be driven out. >> sure to turn into bloomberg and get an in-depth analysis from the daybreak team now broadcasting live from our studio in hong kong. listen on the app or bloomberg

radio. 50 more ahead, stay with us. -- plenty more ahead, stay with us. ♪

>> a quick check of headlines. the company also known as technology group said they fell

from -- they fell $1.6 billion below analysts estimates. your marking $2 million -- cofounder and ceo an initial one half billion dollars. they have no plans to invite outside investors to take full control of the car making business. one of the most used cryptocurrency wallet at's has raised $30 million by teaming up with bench partners. starting in 2016, he took it has 12 million users.

if slashed over 50 billions and crypto assets and income. the ark launched its first traded exchange in two years. the funds will be the first of yuan each have history with more than $294 million in shares in tuesday's trading. let's take a look at what we are watching going into the start of trading in sydney today. >> it may move after they eased restrictions, allowing vendors to distribute as much as 50% and the remaining to be sent in july 2022. another stock, i joe energy and rbc capital.

they have trimmed the price cap for the stock, on points holding sydney. it was rated in mumbai -- the u.s. market expected to reach $39 billion at maturity. the last trading day of march, interesting, yields stay higher. with off -- again as we wrap up markets. check out heading towards that 179 level right there. >> we will be discussing what is happening with banks and how they are on the rise with the dollar. we will get more from the market outlook just ahead and we will be talking vaccine hesitancy and

hong kong university. market opens in sydney is next. this is bloomberg. ♪

haidi: very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: i am shery ahn in new york. welcome to "daybreak asia." japan's biggest lender flags a loss that may be linked to the fallout.