haidi: a very good morning, i'm heidi stroud in sydney. we are counting down to the major market opens. shery: our top stories this hour, samsung is expected to get a big boost when it reports at of the market open. it is helping phone sales can offset weak results in semiconductors. to shiva could be set to go private, cbc capital and set to

layoff $20 million with a former proposal expected later today. and credit suisse is counting the cost of the archegos crisis and it's not pretty. they're cutting dividends and suspended share buybacks after taking a $4.7 billion hit. breaking news of south korea, we are getting a current account circle, right now widening to eight point 03 $4 billion for the month. this is on top of the previous month boost trades rising at over $2 billion for the month of february as well. not surprising given that we have seen incredible strength when it comes to export demand. south korean ships and cars winning those games. we are following south korea very closely as we will also get samsung earnings later today. we have breaking news out of the u.k., they will begin moderna:

vaccination rollouts starting on monday. it would be the third vaccine to be deployed in the u.k.. they are now saying they are delighted to start the u.k. rollout of the vaccine, the u.k. government has secured those moderna vaccinations for the entire country. this would be the third vaccine available in the u.k.. this, of course, as we continue to see rising cases but more vaccinations coming available worldwide. haidi: this is particularly when it comes to the prime minister boris johnson's plane, full reopening in the u.k. economy by june 21. we know we talked about the ongoing supply shortage issues of the astrazeneca shop. this rollout with the modernity covid-19 vaccine shot is going to be a huge part of that.

we have breaking eco-numbers when it comes to australia, when it comes to the numbers we are talking about as well as the services team, both of them moderating in the month. breaking it down, we are seeing that index rising as well. also the housing index rising. we have continued to see that surge in construction of new homes as well as previously owned homes in australia. the property market continued to run red-hot. this is what we are seeing in regards to numbers there in moderation, global equity rally. s&p futures looking more optimistic.

that will lend a little more liquidity into the markets that have been on this side of the long weekend. shery: let's get more of the markets, we saw u.s. stocks taking a breather on tuesday after touching all-time highs earlier in the week. we will continue to see a sharp recovery in the u.s.. joining us not to discuss, wells fargo head of equities. always great to have you with us. we have seen more breath when it comes to this rally, more when it talks to the 200 moving averages. where you see opportunities? >> that is a good question. where we are going to see it is more in individual stocks. it will be less about the industry and more about company fundamentals. investors are going to care about which companies can produce cash flow and meet or beat earnings expectations. that is going to become the key driver for the remaining part of

2021 and into 2022. shery: what you make with recent talks when it comes to global tax rates? what court of changes should this bring to the investment landscape? >> it will be interesting. there are a lot of unanswered questions there. i am curious as to how that might be done. but, we all know that people are driven by incentives. and what we saw by the lower corporate tax rate in the u.s. is, a created incentive for the u.s. companies to bring manufacturing back to the u.s.. it brought jobs and manufacturing we call it a renaissance. one of the fears that i have is

will and increased tax rate change that model? will companies explored taking some of that manufacturing abroad again? that will not happen overnight, it will not happen in 2020 as we all know, markets are smart and they predict what is going to happen well ahead of it happening. i think markets are going to be wrestling with policy change, and what might happen in the future. haidi: given the richness of the markets in the u.s., we be looking for more international? -- will you be looking more international? >> there are opportunities, they are behind the curve. as you were just talking about, the rollout of vaccine is behind in europe and other places. and, so, they are behind in having the global recovery we

are seeing so sharply here in the u.s.. our markets rallied way ahead of the economic data. and the strength of that data we are starting to see now. europe's data will lag, too. the international markets will show great strength head of the numbers coming through. we are very interested in emerging and international markets. we think investors are under invested in those places. haidi: in terms of the level of investment we see at the moment, the amount of cash looking for a place to go, is this a goldilocks scenario where we are relying on not just the fed but global central banks maintaining the current standards? >> well, there is still so much liquidity in the market. that has played a big part, but you are right, interest rates

and a low rate environment have fueled a lot of the fire as well. and, there is real fear from many investors that is going to lead to overstimulation. both with liquidity in the market and the low rate. so, the ugly word that begins with an eye is probably the biggest fear on every investors mind. when will we see inflation? inflation big enough to force the fed's hand in raising rates. that is one thing that most investors are worried that could change the direction of the market. we certainly are watching it carefully. and believe that rates stay low, at least through the end of the year. but, i am not a great -- i'm not an economist for one. and, i had seen the fed say one thing but they generally react

to the data. i expect they will continue to do that in the future. haidi: you have said you would not be surprised if there was a 10% correction for the end of the second half. are you positioning for that possibility? >> most of our equity teams, the teams i oversee, are fully invested. that is their mandate. they are supposed to be invested in equities. their clients and our investors inspect us to be invested in equity. but are they positioning? they are positioning themselves in ways they believe will be earning expectations. that will produce, that have better fundamentals and will produce better cash flow than average. that is the type of companies that we think will succeed over the long-term. remember, a 10% correction is very often an opportunity to get

involved in the market at a more attractive price. that is what i believe, if we do get a correction, it will most likely presents an opportunity to get involved in what most likely is going to be a good year. haidi: always great to have you with us. we have some major news, potentially affecting toshiba. the board is said to be meeting later today to weigh the details of that deal. as we heard earlier, cvc capital partners is considering purchasing a major stake in the japanese conglomerate. that possible investment into shema, we had seen that huge rise into shiva shares as well as japanese trading over the course of the past few months. toshiba was a hugely dominant corporate figure in japan, had been forced to sell off earlier to avoid being delisted and going through quite a few edge extensional crises.

we are hearing the toshiba board is meeting later today to consider the proposal from cdc capital partners to take a major stake in the company. a lot of the money targeting japanese countries. shery: we are talking about corporate giants dominant in the market. we are expecting samsung's per luminary earnings later this hour. we have seen samsung surge during the pandemic. the demand for electronics, the work from home environment. now, surging. at the bottom of that panel, you can see the valuation for the company has also been surging. given tons of waiting in the index. it could be a miss leaning -- could be a misleading characteristic. you can see business as surge

during the pandemic but, they did miss out on assessments for the fourth quarter. and have warned the profitability could decline in the first quarter because of the weakness in the memory chip business. not to mention market fluctuations. we will be discussing and breaking down those preliminary results later. up next, the latest in the argo's fallout with credit suisse falling while banking rivals thrive. details ahead. this is bloomberg. ♪

>> this is daybreak asia come on vonnie quinn with the first word headlines. growth forecast was updated for the second time in three months, worrying about widening inequality and lesser developed economies. the global economy is expected to expand 6% this year, up from

the pay estimated in january. that would be the most in four decades, it comes after a contraction last year of 3.3%. india's economy is projected to grow at historically high-level of 12 and a half percent this fiscal year. but, the imf is warning that the current rate of covid cases is concerning. india had a record number of infections on sunday, it's wealthy estate has halted all nonessential services and ordered private companies to work from home. amazon's jeff bezos says that he supports resident buy-in proposal of tax hikes to help pay for the infrastructure bill. however, basil stop short of fully endorsing the president's proposal. amazon traditionally avoids political issues not directly tied to its business. it was caught up in the debate after biden cited it as a company that did not pay any

income tax. iran said is talks on the power deal was constructive. in exchange for its production of enriched reunion. ron's lead negotiator says they will meet again on friday. global news 24 hours a day, on-air and on bloomberg quick take, powered by more than 2,700 journalists and analysts in more than 120 countries. haidi: credit suisse has emerged as the big loser among global banks in the archegos meltdown. sue is following these development closely. these major changes we have been reporting on are now being confirmed by the bank.

>> from the $4.7 billion tied to the archegos probe is staggering. it also mentions sweeping changes in executive management, particularly in conditions related to risk management. not more than a half-dozen departing executives, as bloomberg previously reported, investment bank can brian chin departing. at least five other departures are taking place, all appearing to relate either directly or indirectly to decision-making on risk exposure at the bank. a statement issued by the ceo said serious lessons will be learned here. and the loss from argo is unacceptable. no other bank tied to archegos or the financing of its high

leverage positions offset in losses like credit suisse. the banks losses forces and to cut its proposal, also suspend share buyback. and, as many analysts, it cast doubt on the checkered record of managing risks. causing the bank over time. shery: we saw other banks managing their exposures, compare how they differ from what credit suisse did? >> we also note those rivals have been feasting on market activity. if you go into the bloomberg, you can see the loss wiping out these profits. many are questioning how it will impact our future. if you look at those rival banks, they escaped without any impact, particularly goldman,

out front selling its argo's -- selling its archegos related positions. that raises serious questions about systemic problems with risk management at credit suisse. it's lost worse every other banks. which again has announced its loss to be about $2 million. less than half of what credit suisse is reporting. the firm has yet to give a tally if you look at the long list, analysts point to a series of missteps and poor management decisions related to risk. the firm has yet to give a full tally on the effective last month collapse. they are planning an update against losses tied to that debacle. it preceded the losses now being reported related to archegos. shery: sue with the latest on the fallout from archegos. up next, president biden said

targets for the rollout of covid shots in the u.s. and the u.k. plans to deploy its third vaccine. details next. this is bloomberg. ♪

>> there is a lot of good news but also some bad news. new variants of the virus are spreading and moving quickly. cases are going back out. hospitalizations are no longer declining. deaths are still down, way down from january, but they are going up in some places. shery: president joe biden warning of rising cases covid variants in the u.s.. for more, we are joined by michelle cortez. very soon, we could see all the

adults in the united states being eligible to get a vaccine. >> president biden has moved up the date when it comes to allowing all adults in the u.s. to get access to the vaccine, to the middle of april. that is great news for people who are trying desperately to get in from these vaccinations. you still do need to get an appointment. there are many people out there currently hitting refresh over and over again on their computer , and facebook lists trying to find access. good news is, if you are allowed to get access to the vaccine, the challenge is going to be actually getting the appointment time from your local center or pharmacy or some other vaccination center. haidi: the other interesting development was pushing back against the idea of vaccine passports. this will calm some of the controversial discussion that has been going on in the u.s.

but what does it mean when you have, for example, countries like greece saying they will require documentation to visit there? >> is going to be a huge challenge how to open up the country, especially if we are going to be relying on vaccine. we are seeing companies say they are cruising again this summer, everybody on board, their passengers and workers will all be vaccinated. but how do you do that without some kind of federal government approved vaccine passport? white house has been very clear on this, saying they don't want to get involved. they don't think that is the proper role for the white house. even in the beginning, before they come out definitively and said no, the point was this is something they thought private markets should be handling. it is definitely going to be a challenge, and will be seen in additional places, including california. removing all restrictions when

it comes to numbers and social distance and, limits in restaurants opening up music and other sporting events. figuring out how to thread the needle is going to be a challenge. everything you are relying on. you can't be sure, you're setting yourself up for disaster. shery: in the meantime, more vaccines available worldwide. the u.k. rolling out modernity. -- rolling out modernity. >> great news for the u.k., we know the companies are working on second-generation vaccines. went to get that process up and running, you can very quickly swap out new versions of the vaccine to get some of these novel variants that are up and running. of course, the u.k. is very out far ahead when it comes to vaccinating, especially when it comes to europe. the idea that we will get

another type of vaccine broadly available, that has already been vaccinating among the fastest in the entire world, that is great news for them. haidi: michelle cortez with the latest on the vaccine rollout. we do have an update from the stock exchange. suspending shares after the buyout interests. toshiba shares will be suspended on that buyout report. we are hearing that capital partners is considering buying a major stake into shiva. and that the board will be meeting on wednesday to waive the details of that deal. earlier, we saw adr jumping 22%. toshiba overall over the past year, 33% this year. we had in the last few days also heard that there was talk about a potential buyout of in-state in another memory chip division as well. so, we are looking ahead to

training in japan. more details on the potential buyout of toshiba by cdc capital partners. and when that stock begins trading, with the shareholders think about that. this get you a quick check of the latest business-class headlines. facebook removing 14 networks and more than 1000 fake accounts seeking to sway policy around the world. most of the networks removed in the early stages of building their audiences. facebook had improved efforts to remove global bad actors. reviewing the crackdowns of larger ones. clubhouse is reportedly in talks to raise funding and investors that values it at around $4 billion. that would quadruple its value from january. clubhouse has already hosted some of the biggest names in businesses and hollywood. it is unclear how much clubhouse is seeking to raise at this ti coming up, the imf upgrades

global growth forecast for the second time in three months. we take a look at the path to recovery next. this is bloomberg. ♪

shery: there down to the start of trading. president moon jae-in's party could be headed for the biggest defeat in five years in their mayoral elections in the two biggest cities. surveys showing conservatives have been commanding the lead. also being fueled by propaganda over soaring real estate prices. polls are open until 8:00 p.m. local time. we are also on watch for samsung earnings any minute now. we are expecting a jump in profit from sales of the new galaxy s21 lineup. it is a litmus test for memory

chips and electronic devices. take a look at what markets are doing now. we have kiwi stocks gaining around .6%. rising. despite the fact that they lost ground in the last two sessions. nikkei futures under pressure. we have seen the japanese yen gaining after falling through the 110 level. weakening to a one year low last week. s&p futures, higher at the moment. this after u.s. stocks lost ground in the regular session, falling from those record highs. sydney futures, we are watching the open in australia after the rba left the interest rates steady. not much change on that front. haidi: we do have good news from the international monetary fund. it has boosted its global growth forecast to the highest and 40 years. it is still morning of the dangerous divergence between rich and poor nations.

let's bring in our economics and policy editor kathleen hays. let's start off with the good. it was driving the economic outlook here. kathleen:5 one of the big things is the country that -- the countries that can afford it, if you big countries as the imf put it, increasing fiscal spending. the other thing is they think the vaccine rollout getting stronger in the u.s., starting to spread around the world, and it will make a much stronger second half of 2021. let's hope so. here is a chart to look at the numbers they changed. they were originally looking for a gain, if we go to the far right. they were looking for a gain of about. . 5.2%. at is up to 6%. you can see 4.2% in 2022. still staying close to 4% for the next two years. actually very strong. what is interesting is when the

big line, the 6% blue line first came out, the imf and october was looking for about 3% growth next year. it has doubled the forecast. let's move on. the imf is singling out as responsible with all of the fiscal stimulus for making this happen. here is what they said in their world economic outlook report. one point $9 trillion the biden administration's new fiscal package would deliver a strong growth in 2021, and provide sizable, positive spillovers to trading partners. if you are an exporter in asia, this is what you want to hear. let's look at the individual country forecasts. this shows us how much the boost in global growth is due to the boost in u.s. growth. for the u.s., it is seen at 6.4% for next year gdp. that is double what the imf was looking for three months ago. china is getting stronger. still about 8%. the second biggest economy in the world. japan, up to 3.3%.

india, emerging markets, getting minor boost higher. what is interesting is a big focus of the report and all of the things that have been talked about at the annual spring meeting is that while those nations are doing well, emerging markets are not returning to pre-pandemic levels, not this year, not 2022, not until at least 2023. that is why there is so much focus on the imf proposal. the issue, more than half $1 trillion of special drawing rights. they say number one, boost global liquidity. that is important to keep financial markets greased. also, help poorer nations with their rising debt levels that they have incurred to end -- to fight the pandemic. also the virus itself, all the health care costs they have to finance. this is another important aspect that ties it together. the richer nations are doing well.

the poorer nations lagging behind. there is a lot that needs to be done. shery: lots of concern over debt. our policy editor, kathleen hays. the imf chief economist spoke about a possibility of a systemic debt crisis. she is not seeing that. but she says any covert vaccine resistance would be a nightmare. she spoke to bloomberg about the global recovery, including imf's $650 billion plan for currency aid. >> $650 billion would be very good. we have not had a new allocation. it did not happen last year. it is needed. it will be a strong signal of global confidence, global multilateralism, and in these highly uncertain times when we still have the pandemic, it would help all countries be in a safer position with these additional reserves. this will not be enough, and we have talked about the need for cap -- for financing for

long-term countries. but also debt relief extensions, that restructuring in some cases. there is still a lot more to be done. this would be a good beginning. >> what can we realistically talk about in terms of debt reduction? what needs to happen to bring private creditors to the table to talk about this issue? gita: countries are in different places. some countries will need to get more resources at home, increased tax capacity, implementation, they will have to rely on their domestic resources. but there are some countries whose a debt is already so high that it is hard to think of a scenario of how they would get out on their own. debt restructuring is a solution. i would say they g20 common framework is one that can happen. we have three countries, china, ethiopia, and zambia that have decided to use this particular framework.

i would say that is one mechanism to bring everyone, including the private sector, on board in providing relief on the debt front. >> what is the risk of an emerging market debt crisis at this point? if one country has a problem, how insulated, isolated, is it possible to make that country to avoid contagion? what is your modeling telling you? gita: firstly, just to be clear, we are not seeing any systemic debt crisis. we have a world recovering strongly and it is good for everybody when there is a high deal of growth. especially if you are a large trading partner of the u.s. that helps you. in general, if you are an exporter, you benefit from it. we know that when there are periods when interest rates go up in response to positive news, that is not terribly damaging for emerging markets. on the other hand, with the fast

recovery in the u.s., if there is a price tightening in financial conditions, that of course is a concern. i will mention a couple of things. unlike 2013, many emerging markets have much larger reserves. they have much smaller current account deficits, which is there borrowing that they are doing now which is not high. on the other hand, they are in a deep crisis and they have physical need. i think we could see countries that have high levels of vulnerability, high foreign-currency boundary -- borrowing. there are risks to them. it is not like we are seeing any kind of systemic debt crisis. alix: as you look forward, what are the warning indicators you look for? what kind of numbers are you watching on a day-to-day basis? gita: again, the number one number we watch is everything to do with the pandemic. especially news of any kind of new variants. any ones that will evade the vexing. that would be a nightmare

scenario and would lead to a big downgrade and growth. that would set our statistics. the other thing we are watching is numbers on inflation, inflation expectation, because we know that has an important effect on infrastructure around the world -- interest rates around the world. that has applications for all -- has implications for all other countries. financial conditions, how sanguine they are, if you see tightening, these are the kind of things and variables we are looking at. haidi: chief economist speaking with alix steel and guy johnson. we have breaking news on samsung. first quarter earnings. it looks like a confident beat across the board when it comes to the first quarter operating profit, coming in at 9.3 trillion one estimates. 8.8 trillion yuan. the sale numbers at 65. slightly beating estimates. the operating profit,

comfortably above expectations. this is really seen as a litmus test of electronic demand. we had expected to see that substantial profit jump, thanks to the release of the galaxy s21. the mobile division, about 40% of operating profit last year. expected to overweight the weakness coming through from the semiconductor business. let's get reaction to those results out of samsung. senior research manager at idc asia-pacific, great to have you with us. we are expecting a strong quarter. these numbers seem to back that up. >> yes. for samsung, i think it has been a good quarter. the galaxy s21 series has done well in this quarter. it has rebounded after slow sales in the previous quarter. if you look one year back, they launched at the time when the pandemic had just started to hit the global markets. that was a very unfortunate time

for samsung. it seems to have rebounded in the second. i think a big factor is that they have lowered the price of those areas compared to the previous generation. that seems to have gone very well. haidi: what about the chip side? we heard from the co-ceo last month at the supply crunch would be problematic. we are hearing estimates from the likes of them saying it is 16 weeks across the board from when you place an order to when delivery happens. it seems the angst in the chip sector is continuing. kiranjeet: i would say it is a good and bad thing. the good thing is there is strong demand for chips across the world. not just from smartphones. but also automotive's. there is good demand all around. which means all of the boundaries, they are running at actual capacity.

the downside is there is very little thing to absorb any destruction. for samsung, the shut down for a few weeks at the alstom plate, it would increase the time for some of the components. we need to keep in mind, it is not necessarily the process is going to the smartphone. but it could be any of the competence. it could be the chips. one of the smaller things you would otherwise not notice so much. any of the smaller companies, they could cause a bottleneck and delay the production of the entire device. shery: how much insight is samsung seeing from the pressure on huawei? kiranjeet: huawei shipments have continued to decline globally over the last couple of quarters. i think the pressure on huawei would be more. as chips get depleted further,

they are probably going to look at a global market even less. and concentrating on whatever they have on the home market of china. cat obviously leaves room for other players including samsung to take advantage. at the same time, they announced they -- there is more upside for samsung. some of the global markets including the u.s., brazil, even the whole market of korea. shery: what are we seeing in samsung's display segment, given the strong demand for smartphones? kiranjeet: they will have some display for other smartphone makers as well. in the past, most could see going into samsung devices. it started expanding to more of the chinese customer base. i think we should see stronger

things coming from the display segment as well. shery: what about chinese vendors instead of customers, how much can petition are they putting up for samsung? kiranjeet: i think that continues to be a silence for samsung. in samsung's key markets, chinese vendors are pretty strong and they continue to put price pressure on samsung in those markets. i think that has to be faced in the coming year. haidi: the samsung keep insulated when it comes to the foundry business, particularly if expectations of more investment in's -- in phone capacity? kiranjeet: not necessarily. a lot of the demand surge we saw, it is supply demand mismatch because of the uncertainties we have seen in the past year. we do expect samsung and other

foundries to continue to expand over the coming years to take it to the ongoing demand. i think the demand will continue to rise. you look at the automotive sector as well, with the autonomous semiconductor that goes into each one. it is going to rapidly increase. even if you look at smartphones in semiconductors that goes into each of these devices, it is much higher than it was. with this increased demand, i think the investment going into capacity is going to rise. haidi: right. basically, to counter the $20 billion investment from intel, you would expect the likes of samsung would have to spend more and invest more? kiranjeet: exactly. shery: great insights, thank you

so much for joining us. coming up next, tokyo to stock exchange suspends shares, where they are considering buying a stake and taking a private. the detail ahead. this is bloomberg. ♪ the detail ahead. this is bloomberg. ♪

vonnie: this is "daybreak: asia." i'm vonnie quinn. president joe biden formally

announced all americans over the age of 18 will be eligible for a vaccine by april 19. right in spoke at the white house on the estate of the efforts in the country, warning the u.s. is still in a life-and-death race against the virus. he warned while there has been progress, there are variants spreading quickly. pres. biden: there is a lot of good news but there is also bad news. new variants of the virus are spreading, and they are moving quickly. cases are going back up. hospitalizations are no longer declining. while deaths are still down, way down from january, they are going up in some places. vonnie: the united kingdom is told -- has told britain's to hold off on planning holidays the summer, deflating the hopes of an airline industry desperate to get back in the sky. restaurants, pubs, shops reopened next week. prime minister boris johnson says it is not clear

non-essential international travel can resume safely as planned on may 17. israel's president has chosen benjamin netanyahu to form the next government of the country, despite netanyahu's ongoing trial for corruption. he has up to six weeks to build a coalition. the outcome of last month's election was inconclusive, with netanyahu and the other feeling to secure a majority. the prime minister is facing three trials for bribery, fraud and breach of trust. he denies any wrongdoing. the former prime minister is said to be among the wealthy middle eastern investors exposed to capital funds. sources say vehicles linked to him invested about $200 million in funds that bought loans from him last month. it is unclear how much he stands to lose. global news, 24 hours a day, on air and on bloomberg quicktake,

powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: the tokyo stock exchange has suspended shares on reports that capital partners is considering a buyout. the board plans to meet in the coming hours to discuss the potential deal, according to bloomberg sources. let's get details from our asian technology reporter. cbc may take it private and offered reportedly worth more than $20 billion. do we know any more details about what they are proposing? >> yeah, at this point, we know pretty much the briefest of sketches. the board will meet to discuss the offer. we do know that the ceo of the company, he used to head the jamail -- the japan operations. it is not exactly a cold call.

a lot needs to be entered before we know how serious the proposition is. in the potential that we will know more about it today. but this is one of the latest brushes with activist shareholders for toshiba. shery: capital management succeeded in passing a resolution at an extraordinary shareholders meeting. tell as about this. pavel: that's right. three weeks ago, they pushed for an investigation of voting at the 2020 agm. back then, the largest shareholder of toshiba, try to get one of its cofounders named to the board. it lost the vote but has claimed counting was not fair. investors at the shareholders meeting said it was not looking into it, and an investigation is underway. they had a several -- a separate proposal. they lost the vote.

but it is a sign of upheaval among toshiba's investor base, a sign of distrust of management, and that might be a sign that they might be receptive to the offer. haidi: what are the potential obstacles facing cbc? pavel: price is one of the biggest one. at $20 billion, it offers some premium shy of 16 billion with that company that was worth it. they suspended training -- trading. shares will likely close the gap. for the one major element of uncertainty, the initial public offering, a former unit, toshiba owns a 40% stake in the company. considering how hard everything is these days, this could be a potential big boost to its value. there is also the intangible factor of the importance being

public company in japan, which a lot of people don't understand. it matters everything from hiring graduates to securing financing. toshiba, which has been demoted to the second section of the stock exchange after the accounting scandal, have to work hard, and has been rewarded by investors. it will take a lot to convince them to give it all up. shery:e are talking about 30% gains in trading this year for toshiba. we will be watching the open. pavel alpeyev, bloomberg asia technology reporter. be sure to tune into bloomberg radio. you can hear more from the day's big move make -- big move makers -- newsmakers, broadcasting live from hong kong. listen via the app or bloombergradio.com. plenty more ahead. stay with us. ♪

haidi: a quick check of the latest business flash headlines. general motors plans to make pickup trucks. they say they will produce battery shot -- battery-powered chevrolets el dorado -- silverado's. the company shares hit a all-time time high on the announcement. there is stiff competition from the likes of tesla and ford, which also have electric pickup plans. nigeria's government provoked four oil permits from the unit of china, and reallocated them to two local companies.

a spokesman for the park -- for the department of petroleum resources says the loss and did not provide further details on why. a company is set to be aiming for a fourth quarter ipo. the company which is controlled by walmart, has reportedly set up an internal team and is leaning toward a traditional debut in the u.s. after exploring a possible listing. shery: here are stocks to watch at the open. samsung, given their profit beat estimate after strong smartphone gadget sales, that soften the blow from a texas power failure that took one of its factories off-line. lgl electronics, we are watching it an first quarter guidance. in japan, looking at one of the units invested in the ipo of india's microtech developers. toshiba suspended right now on news that cbc capital is considering buying a major stake in the japanese conglomerate. coming up, more markets analysis

with global investors. our guest is with us from hong kong. we will be discussing the south korean mayoral elections. this is bloomberg. ♪ ♪

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shery: welcome to "daybreak: asia." from new york, i'm shery ahn. haidi: i am haidi stroud-watts in sydney. asia's major markets have opened for trade. our top stories this hour. asian benchmarks headed for a steady open amid a positive global rally which drove stocks to all-time highs. samsung shares should get a boost with earnings beating estimates.

south korea's president could oversee his party's biggest feet in five years. surveys show moon jae-in's democratic party trailing conservative rivals in key races field by public anger over 4 -- over soaring property prices. shery: we have japan and south korea coming online. the nikkei now, unchanged at the moment. we have real estate and communication stocks leading the gains. have care and on the index as the japanese yen hold steady below the 110 level against the u.s. dollar. one company we are watching is toshiba in japan. it suspended trading now. they have confirmed they have received an initial buyout offer. there was news that capital partner was considering buying a major stake in the conglomerate. toshiba saying they will waive any offer -- way any offer of carefully. we have heard from nikkei as well that the offer could be worth more than $20 billion.

they are confirming they have received that initial buyout offer from cvc, the company remains underrated in japan. take a look at what the kospi is doing now. we are seeing an unchanged at the moment. we had the current accounts widening to over $8 billion. another company we are watching is in south korea. samsung electronics losing ground after they reported operating profit for the first quarter that beat analyst estimates. they had strong smartphone and gadget sales. but we are seeing the samsung stock losing ground. haidi: pretty high expectations from investors given it was a pretty satisfying beat. let's look at the open as we see trading underway. the first few minutes in sydney, a pretty modest start to trading. we have a full day of gains. financials on another day of gains as we see stocks outpacing

asian counterparts amid the global reflation trade. we are seeing the finance of index coming over 12%. continue to watch the gains. aussie dollar holdings set -- holding steady. resilient after that got upgraded. seeing risk creep back in. new zealand up by .5%. still watching these tourism players on both sides in new zealand and australia after the announcement of the travel bubble to begin april 19. the kiwi dollar, pretty steady this morning at 70: -- 70.62. eco-data coming in strong. bond yields being contained. how long does that balance continue? hands on central bankers. our next guest says tightening of monetary policy driven by faster inflation remains a key risk. let's bring in our ghost -- our guest. is this a goldilocks situation?

amid so much liquidity, still looking for a place to be invested, what are the key risks for you? >> indeed, one of the key risks is premature tightening and market policy, driven by short-term inflation of growth because of the mask -- the massive fiscal stimulus. and supply chain shortages. with the return of service, sometime down the road, as it picks up. that remains the key risk. we know the system is leveraged. we do know they will agree their borrowing at a lower rate. if there is a significant tightening, they need to go back into this territory at a rapid pace which can bring chips off risk assets at a pretty fast pace over the next few months. haidi: talk about the amount of leverage and the levels.

what is the explosion of the drama still playing out, particularly for the banks, tell you about the level of systemic risk and whether this is a scenario that investors need to be cautious of now? binay: yeah, the levels of debt is something you have to be cautious about. having said that, there are a few mitigating factors. companies have been able to refinance significantly over the past few months. if you look at the amount of tech traced by companies this year, it is massive. from a liquidity perspective, they are well supported. no doubt about that. in the long run, you also expect them to retain a significant chunk of investments into the sovereign. that is a mitigating factor. if you do get a scenario where growth drops off substantially,

then it starts becoming more relevant in terms of how impactful they are in bringing down corporate activity, how in haifa they are in causing more of this. shery: let me talk a little bit about sector specific issues. right now, we are seeing the latest breaking news about cvc capital potentially buying a stake in toshiba. toshiba has a huge stake on chipmakers. we have seen samsung doing pretty well, given the chip demand. is there no way to lose right now when it comes to these semiconductors, given the global shortage? is this sector the one to go with? binay: generically from a medium to longer term perspective, you would look at this sector as doing well. the move towards rapid mechanism -- mechanization's, it is going to be funded and powered by semiconductors and chips. from that perspective, in the long run, the sector should do

well. having said that, you have seen a sizable announcement in terms of capacity by the leading players. that could create an oversupply. kb 2022, -- maybe 2022, 2024. shery: we mentioned oil. let's talk about the commodity space. we have seen some of those metals losing ground, given news that perhaps china is trying to tighten conditions over there. what is going to be the outlook for the rest of the year for this space? binay: generically, and a lot of the commodity price optimism is driven by two factors. the first obviously is the massive fiscal stimulus and the effort of the distribution of income to lower income classes, which does tend to have a higher propensity on consumption toward

commodity compared to services. the other is justifying that you have seen a fairly noticeable control in terms of supply. opec-plus finally decided to increase 2 million barrels a day over the next quarter. the applies from there are still lower compared to where we were prepending levels -- pre-pandemic levels. there is supply-side as well. as demand picks up, some of the automation will go away. as economies reopen. this is where production has been cut. because it has been difficult to extract. some of that will not -- will even out. the outlook is still fairly ok. because of the fact that the demand is pretty strong. but we expect the increase in commodity prices to slow down over the course of the next few months. it essentially will be a good thing for emerging economies. they tend to have food and oil

prices. therefore, the incentive for them to reduce the growth would be less if prices slow down. shery: great having your thoughts. binay chandgothia, from principal global investors. let's go to the first word headlines. vonnie: thank you. the international monetary fund has upgraded its forecast for the second time in three months, while warning about widening inequality and the diverge -- the lesser developed economies. the global economy is expected to expand 6%, from 5.5% pace estimated in january. that will be the most in four decades and would come after a contraction last year of 3.3%. amazon jeff bezos says he is supportive of jet -- of president joe biden's tax hike to pay for the infrastructure built. he stopped short of fully endorsing the president's proposal, and a statement on the corporate blog.

amazon traditionally avoids political issues not directly tied to its business, but it was because -- can't up -- it was caught up into this debate. president biden formally announcing all americans over the age of 18 will be eligible for a vaccine by april 19. biden spoke at the white house on the state of vaccination efforts in the country, warning the u.s. is still in a "life race against the virus." he warns while there has been progress, there are new variants spreading quickly. pres. biden: there is a lot of good news. but there is also some bad news. new variants of the virus are spreading, and they are moving quickly. cases are going back up. hospitalizations are no longer declining. while deaths are still down, way down from january, they are going up in some places. vonnie: a new study finds

moderna's covid-19 shot is effective for at least six months. meanwhile, united kingdom health officials announced it will begin rolling out moderna as a third vaccine option in the country starting wednesday. a trial of astrazeneca's vaccine in children has been paused while the u.k.'s drug regulator investigates where cases of blood clots in adults. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, south korea's two largest cities hold mayoral elections that could signal the fate of president moon jae-in's ruling party. we will get analysis from our guest. coming up, samsung still at preliminary sales. this is bloomberg. ♪

shery: starting to trade in a couple of minutes. the company has confirmed it has received an offer from cvc capital partners. and is seeking more information about the deal. let's get details from asia technology reporter. we are waiting for trading to begin in toshiba. shares which have already risen more than 30% this year, how much sense with this deal make? pavel: the details are still beginning to emerge. there are some reports saying the offer might value the company at more than $20 billion. this is shy of $16 billion the company is worth as of last close. i'm sorry, a slight premium to the previous value. the lord will meet today.

it is possible -- the board will meet today and it is possible they will know more details. there is one interesting wrinkle. toshiba's ceo actually headed cvc's operations a few years before joining toshiba. this is not exactly a cold call. the broad picture, the company, this could offer a way out of that predicament. haidi: we have seen a lot of money being headed toward japanese companies from private equity. where does the valuation of toshiba land? there is a shadow of its former glory. but his price going to be an issue? -- is price going to be an issue? pavel: and always is. the $20 billion bid, which valued at ¥5,000 per share, shares closed at 3830 on tuesday. they are almost guaranteed to spike as soon as they start trading at 9:15 in tokyo.

it is not a lot of premium. the real wildcard here is the plan of the offering, a former toshiba memory unit, in which company owned a 40% stake. given how hot everything semiconductor related right now is, and it is a sizable share of the market, this could really sway the final valuation of the company. share price is important but there is a lot of intangible benefits to being a public listed company that might not be visible to people outside. it matters and everything from financing to hiring graduates, to executives going on to public offices and industry groups, leadership positions. toshiba has fought really hard to climb back from the whole advantage of the accounting scandal and knocked it down to the second section. and they finally made it back to tsc one and were fairly rewarded

by investors. it will be no small matter for them to convince them to give all of that up and go private. shery: the suspension of toshiba has been listed, but shares are still not trading. we know toshiba tc is rallying more than 7%, given the news of its parent, toshiba, and its potential buyout. tell us about that crown jewel when it comes to semiconductors. because they were forced to sell that business in order to avoid being delisted from the tokyo stock exchange. pavel: right. the company which makes flash memory, specifically the kind of stuff that keeps its data after a smart phone or laptop is switched off, it has been in booming demand for this memory because of a lot of it -- because a lot of it goes into the data center, and the 5g equipment.

the company planned to list late last year but delayed because the markets were too volatile. obviously, it probably has never been a better time to go public than right now. but they have been dragging their feet and it is not clear why. we expect we might see the listing later this year. in any case, this could be a massive boost for toshiba's valuation, if it does manage to pull off the ipo. haidi: the board of toshiba is coming under ever more pressure, particularly with the backing of this resolution. pavel: you know, they held a shareholders meeting a few weeks ago, at which the capital management has pulled off quite a rare feat in japanese corporate history. they managed to get investors to vote in favor of investigating voting at an earlier shareholders meeting in 2020. back then, the largest

shareholder, tried to get one of its cofounders put to the board. it lost the vote, and claimed accounting was not fair. typically these resolutions go in favor of the corporations. this time, the rank-and-file of toshiba investors have collected enough distrust of the management to vote in favor of this investigation. in this potentially is a sign that they might be receptive to an offer from cvc, and a radical change in the company's future. haidi: pavel alpeyev, bloomberg asia technology reporter with the latest on toshiba. let's get to samsung now. first quarter analysts beating -- stemming from the chip factory that was sidelined by texas peerless get more from our editor, peter elstrom. it was a pretty positive quarter for samsung. peter: that's right. samsung does and unusual thing. it puts out preliminary earnings

a couple days after the quarter ends and it will give final earnings later. we only got two numbers. we got operating profit for the company, and projected revenue. the operating profit was very strong. earnings are expanding quite a bit from the company, partly because they release their latest smartphone a little early. they were able to benefit from a nice boost in shares. the company had warned that they were concerned about how demand was going to hold up in the first quarter. it turned out during the exit from the pandemic, consumers are buying a lot of technology. some of that is samsung's only technology but also they sell key components for other people's smartphones and tablets and computers. those sales appear to be quite strong. shery: what is the long-term outlook, given the shortages we see in the chip industry? peter: that is one of the things the chip industry has been wrestling with.

samsung and toshiba's memory chip arm, there are these shortages that are creating bottlenecks in certain parts of the global economy. automakers in particular have complained about not being able to get the parts they need to be able to sell. that has been a problem for some of these in companies like automakers, that are forgoing sales because they cannot finish up their products. the technology companies, especially one like samsung but since at the beginning of that supply chain, it has been very strong. there is strong demand for technology products as people spend more time at home, either working or kids are at home study, or they want more entertainment at home. demand has been very strong for samsung. for samsung, the outlook has been positive. i'm sure they will benefit from the ongoing demand. shery: peter elstrom with the latest on samsung and the global chip shortage.

bloomberg technology will speak to business leaders about plans to address supply constraints in a special show, chip crunch. that will air at 5:00 a.m. wednesday in hong kong, 7:00 a.m. in sydney. this is bloomberg. ♪ y. this is bloomberg. ♪

haidi: the pandemic has brought a lack of nft, the latest buzzword in the blockchain boom. galaxy digital founder and ceo says we are only in the early days of the crypto art craze. he told bloomberg that global wealth in cryptocurrencies will just keep growing. >> what is the s&p only year? small and bitcoin is up 100%. this week, the second largest cryptocurrency had a monster move. what you are seeing is money continuing to pour into the space. we just went over to trillion dollars of wealth, market cap in

crypto. that is a pretty significant number. $140 trillion in u.s. wealth. $400 trillion in global wealth. we are up to half a percent and global wealth in crypto. that is growing. i think it will be a percent by the end of the year. >> we have seen a lot of usage in digital art. but where do you see this going? what else will it be used for? mike: nft's are going to be with us for the rest of our lives. art on the blockchain, collectibles on the blockchain, ip on the blockchain, it is all happening. we are in the very early stages. so much that there is little many bubbles that will pop up and down. don't miss the big picture. this is fundamentally going to change how we secure intellectual property from now going forward. sonali: am i right to make the distinction that this is not necessarily a bitcoin boom, this

is a crypto, an if area, an blockchain volute -- boom as well that you are following? mike: 100%. galaxy digital was set up to participate in the whole ecosystem. we have made investments in over 100 companies in and around the space. from protocols to security companies, and to defunding companies. i'm sorry, nft companies. romaine: talk about how it is not only appealing to corporations, but there has been talk about how governments could start getting involved in this. what happens, if that happens? i keep it being -- i keep hearing it pitched as a good thing. mike: there is a bunch of different lanes in crypto. bitcoin is carved out -- has carved out this digital gold. most governments don't care if people are putting their money and gold. if they do a horrific job managing their finances, more people will want to take their

money out of that country and put it somewhere else that is safe. right now, bitcoin is being seen in the digital world as that place. i don't think bitcoin is going to be what we used to buy shoes or sunglasses or diet cokes. you are going to see payments as stable coins, vying for that space. shery: galaxy digital founder mike mauve oh grass speaking with taylor riggs and sonali basak. haidi: here is a check of the latest business flash headlines. bloomberg has learned clubhouse is reportedly in talks to raise funding from investors and values it at $4 billion. that would quadruple its value from january less than a year old. clubhouse has hosted some of the biggest names in business in hollywood. facebook removed 14 networks and more than 1000 fink accounts, seeking his way politics around

the world. most of the networks from a removed were in the early stages of building their audiences. facebook says it has improved efforts to reveal the crackdown and one of its larger ones in recent months. , we discuss the mayoral election in south korea. this is bloomberg. ♪ mberg. ♪

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foreign holidays this summer, on the hopes of an airline industry hoping to get back into the skies. restaurants and pubs will open up next week. prime minister boris johnson says it is not yet clear if non-essential travel can resume as planned. iran meanwhile says talk to restore its 2015 nuclear deal with world powers were productive but still demanding the u.s. remove all sanctions for real progress to be made. tehran rejected the u.s. proposal to release oil revenue in exchange for suspension of its production of enriched uranium. iran's negotiators says they will meet again on friday. israel's president has chosen prime minister benjamin netanyahu to form the next government for the country, despite the ongoing trial for corruption. the outcome of last month's election was inconclusive with netanyahu and his allies unable

to reach a majority. he denies any wrongdoing. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts. i'm vonnie quinn. this is bloomberg. shery: let's go to south korea. it is holding its layover mayoral elections in two key cities. the south korean president's approval rating at public lows after anger over housing prices. we are joined by the senior associate for north east asia at the wilson center. great to have you with us. looking like conservatives are leading in both cities. what would losing these two seets mean for -- seats mean for president moon? >> that is the real test,

visited? -- isn't it? these are the two biggest cities in korea. the fact that it represents a big part of the economy is a big blow for president moon. there is the presidential election next march and this is seen as a bellwether test on whether his party will be able to win next year or not. he himself would not be up for election because the president does not go beyond 15 year term but if his party, the democratic party does not do well in this election, it bodes very ill for the party moving forward in the presidential election. shery: the seats were vacated because of the predecessors being accused of sexual harassment. how has this election become a women's rights issue and how has

that changed the debate this time around? shihoko: of course, first and foremost in everyone's mind is the economy. economic concerns will be the thing that really motivates voters but at the same time, this has been in the #metoo movement in korea as well. the previous mayor of seoul committed suicide amid allegations of his secretary of sexual harassment. had to resign because of allegations of sexual harassment as well. there has been this big sweeping movement, an awakening about female empowerment. there has also been an awakening about minority rights especially in the l gdp q community -- lg btq community. haidi: does it feel like an

inflection point on these social issues, these human issues? shihoko: i think the bigger issue is there is going to be social justice. moon jae-in came on this wave of economic change and greater equality and liberties for vot ers. he has focused a great deal of political capital on reaching out to north korea and he spent a lot of time focusing on foreign policy. there has been a lot of frustration amongst koreans about dropping the ball, so to speak, when it comes to economic issues and when it comes to people's pocketbooks. you said at the beginning of the show how samsung is doing well. certainly, korea's export market is doing well. it has weathered the pandemic quite well. when it comes to your average korean, unemployment amongst younger people is still a very big challenge. housing is a challenge.

we have seen films like parasite really focusing on some of the social inequities in korea, really coming to the forefront during these elections. haidi: to be fair, the government has tried to do more when it comes to clamping down speculation of driving property prices skyhigh. is there a perception they could be doing more? clearly there's a level of dissatisfaction with housing affordability and standards of living has become a big issue. shihoko: two issues. one about specific issues about corruption and kickbacks that benefited a few. there is a bigger issue about this concentration of the population in the big cities. korea has really been trying the past few years to decentralize but it's been very unpopular. it is simply moving companies

were forcing government agencies to move to places which has not led to people wanting to leave seoul. we really need a comprehensive action plan. have good hospitals outside of the big city, good educational systems. it becomes this values driven issue as much as affordability of housing itself. shery: as we speak right now, headlines crossing the bloomberg. south korea confirming 668 more coronavirus cases. you mentioned the success in reining in the pandemic and south korea and that actually lead to a super majority in parliament about a year ago for the president. has that changed now? because i continue to see more criticism in local media over the government not being able to secure enough vaccine. shihoko: right. so, the pandemic is really a multi-chapter story. the first chapter of keeping the

pandemic from spreading, using technology, contact tracing, korea did that extremely well. it was heralded as a marvel for other countries, especially in countries like the united states which saw the infection rate skyrocket. now we are in chapter two. the chapter is about vaccine distribution and access. america has done a fantastic job of developing. korea has not really been part of the development of the vaccine. it has been behind, like many of the other east asian countries, in disseminating and making the vaccine available. there's a great deal of frustration on the part of people who think they are focused much more on being entrenched, focused on hunkering down rather than making -- having breakthroughs of it, of being able to think beyond covid. shery: reall,y no breakthrough -- really, no breakthrough

moment when it comes to north korea either. a couple of years ago, we had this optimism over moon jae-in being the sort of middleman between president trump and kim jong-un. that does not seem to have gone anywhere. shihoko: right. we've had these very big diplomatic overtures, magnificent photo op. what have we actually achieved? there is no denuclearization program, north korea saying it will not go to the tokyo olympics. this was supposed to be an occasion where the korea's could work together. it was supposed to be in overture for north korea to work with the biden administration as well as the moon government. it is not expected to happen or seen as a signal it won't happen. there's a lot of frustration to say what have you actually achieved during your presidency?

i don't have a good job, i don't have good housing. north korea is still a threat just across the border. we also have to deal with the china threat as well. show me what you can do. you have not shown me much. i will vote against you and that's probably what's going on at the moment. haidi: i really appreciate your time with us. our senior associate for north east asia at the wilson center. coming up next, foreign money entering china's bonds and equities market. now that is becoming a headache. we have that story next. this is bloomberg. ♪

haidi: let's take a look at the state of trading in this midweek session. we are getting closer to the reopening of trading in hong kong after being closed for holidays this weekend. nikkei 225 up by .5%. wanting for toshiba after the potential buyout. over and south korea, we are seeing reaction from the outside when it comes to samsung. despite the heavyweight reporting, really a stellar first quarter preliminary earnings.

.25% gains seen in the kospi. four straight days in australia of gains. half a percentage of gains for the asx 200. another day of leadership by the financials which is now outperforming their peers across asia. new zealand, .5%. we are seeing some gains in the tourism and services related names. even expectations of a boom on april 19. we are seeing regional gains at about .3% higher. shery: we are also watching for commodities at the open in china. markets took note of beijing's efforts to cool risk assets and we have seen pressure in the previous session. we have seen the pboc keen to curb the flow of credit to the economy and bolster the capital adequacy of the biggest lenders. on that note, when it comes to curbing risk, foreign capital

climbing into china's stocks and bonds last year. regulators are warning about the dangers posed to financial stability. let's bring in our chief correspondent. why is the pace of inflows becoming a concern for china? >> well, the theme is here is almost too much of a good thing. you know that china has been gradually opening its plans to attract foreign capital. last year, that really took off. overseas of chinese stocks went up 60%. holdings in bonds went up almost 50%. the yuan had its best quarter in more than a decade. this influx of foreign money is not unnerving chinese own regulators. they are concerned all the money sloshing around may generate instability. and drive up the currency and hurt competitiveness of china's own exporters. so, it is quite the about turn

from where we were a few years ago when china was concerned about outflows. now calling for inflows has been much more successful than even they anticipated. haidi: we are seeing a number of things to counteract these pressures, right? enda: that is right. they have been quite vocal in flagging that they are concerned about the inflows. not yet at a threshold level where they are signaling major concrete action but they are taking steps which is encouraging investors to invest overseas, invest in hong kong in particular. for example, they are allowing additional quotas for some onshore funds to go overseas. they are taking incremental steps to ask financial institutions to limit the amount of offshore financing. it is those kind of incremental measures that are not necessarily game changers, but they do point to ways in which china is trying to really

relieve the pressure that has been created by the inflows. the challenge for the authorities is they don't want to trigger outflows that would reach apace that would cause a problem similar to 2015. it is about the same for china in offsetting the pressure from these new flows by allowing money to leave without triggering instability we saw few years ago when they really rushed to get their money out of china. shery: and the balancing for china, how can it balance the tension when it is planning to open up to the world? enda: optically, china would have to be careful about the messaging because they have been preaching and financial markets a degree of openness in recent years. they have been allowing foreign banks to take over the local operations. they have been encouraging foreign investors to arrive. the bond market has been included in major indices around the world.

they want to make sure they keep that open for business side visible. anything that threatens china's control or anything that threatens financial instability, will trigger a backlash from the authorities. we have seen that consistently from all of china's economic policy. they will not hesitate to take steps if needed. i will say we are not at the threshold yet. it is a watch and wait situation in china but it all adds to this theme that china will be very careful and very wary about how it handles capital. it will be very cautious on how it approaches this whole issue of inflows too. haidi: enda curran, our bloomberg chief economic asia correspondent. we have an alert when it comes to toshiba. a bid at the upper limit of the buyout proposal. toshiba has recently confirmed it has received an

initial buyout offer from cbc capital. they will make disclosures when necessary. we don't have immediate details of what this offer actually is, but we have toshiba yet untreated. details of the buyout proposal after being suspended earlier on. when it comes to speculation over this purchase of the japanese giant, toshiba, we have seen adr's surge. a jump of 33% for the toshiba share price for the last year alone. we are seeing toshiba as yet untreated at the moment. the market value at about $15.9 billion, according to the recent valuation that we have seen. hong kong and singapore looking to get in on the spac listing boom while still safeguarding against what some say is a bubble in the space. let's get to our china finance editor. what kind of rules are we seeing in hong kong and singapore in

terms of managing the risk related to spac's, but also being open to the opportunity? >> yeah, hong kong and singapore , they are still working on these rules. they are working to get to singapore by the midyear and hong kong by the end of the year. they are aiming for more stringent regimes. singapore is looking to place a minimum market value on companies spac's can acquire. hong kong is looking to place limits on who can issue spa c's, and the target companies would have to meet existing standards for initial public offerings, among other roles. -- rules. this would essentially block celebrities and other prominent people from issuing spac's which you have seen in the u.s., which has pushed to this big surge in the u.s. in spac issuance. they are really looking at protecting investors, while

keeping the issuance at a comfortable level for regulators. shery: tell us about those concerns for regulators. jonas: there is the concern that if they let it go in hong kong, then in singapore, it will create the kind of bubble issuance if you want to use that word that we have seen in the u.s. hong kong is also spent years tamping down on shadow companies and reverse takeovers. there is very little desire in hong kong of creating that kind of market which was tarnished in the past years. the desire is to really protect investors and put in safeguards. they also have fewer safeguards in the legal system that investors have in the u.s., for example. haidi: there are other hurdles,

right? in addition to that, are these rules to protective for the program to get off the ground? jonas: some of the people we have spoken to, especially on the rulemaking side, are skeptical that the programs will be able to get off the ground. singapore's minimum target size -- that could affect the pricing. hong kong's limits will make the market more attractive for sponsors but i think in the end, it looks like they are trying to create regimes that will allow another venue for dealmaking, while trying to limit the frothy part of the market. shery: our senior editor jonas bergman. tune into bloomberg radio to hear more from the big newsmakers and get in-depth analysis from the daybreak team. listen via the app or bloomberg radio.

plenty more ahead. stay with us. ♪

shery: here's a quick check of the latest business flash headlines. general motors entering the electric pickup space, announcing it will go battery-powered chevrolet silverado's. adding the vehicles will travel at least 400 miles on a single charge.

company shares hitting all-time high on the announcement, but there's competition from the likes of tesla and ford which have electric pickup plans. gm aims to sell only ev's by 2035. nigeria's government revokes for oil permits and allocated them to two local companies. a spokesman for the department of petroleum resources says it lost what is known as oil mining leases but did not provide further details on why. the china subsidiary held wonder percent -- 100% licenses which is africa's largest user. indian e-commerce giant is said to be aiming for a fourth quarter ipo. the company which is controlled by walmart has were poorly set up an internal ipo team and leaning towards the traditional debut in the u.s. that is after exploring a possible spac listing. valuation could top $35 billion.

we are still watching toshiba. the suspension has been lifted but it's on traded because they are at the upper limit on the buyout proposal. they confirmed they have received a buy up proposal from cbc capital. we are seeing toshiba rise in sea the best day since 2017 given the buyout offer for the parent company. nikkei has reported earlier that a tender offer could be worth more than $20 billion so we are waiting for toshiba to start trading any moment now, haidi. haidi: yeah, let's take a look in the meantime as we await for that stock to finally start trading in tokyo how the rest of the markets are looking. we have global stocks taking a little bit of a breather from hitting these repeated record highs. s&p futures looking like modest upside. they are looking into the start of trading in greater china. we've had a couple of days of

public holiday for hong kong rejoining the fray. futures up by one quarter of 1%. ftse china a50 looking like a little bit of upside when we get into the start of trading. dollar-china trading at 6.5445. a bit of a broad decline of the u.s. dollar but that is starting to stabilize somewhat. we are seeing upset of .25%. a positive day for markets. coming up, andrew smith gives us his market outlook after the imf growth forecast was upgraded. he is putting his bet on sectors like industrials, materials and financials that will benefit from expansion. that is it for daybreak asia. our markets coverage continues. we are looking at the start of trading in hong kong, shanghai and shenzhen. bloomberg markets: the china open is next. this is bloomberg. ♪

>> good morning, it's not :00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." were counting down to the opening trade on the chinese mainland. let's get your top stories of the day, the imf says china will drive global economy and global growth and recovery from the