♪ >> good morning and welcome to daybreak australia. i am haidi stroud-watts in sydney. >> good evening, i am shery ahn. haidi: these are your top stories. u.s. stock arises as fed chair downplays inflation concerns again but he warns the uneven vaccine rollout around the world are a risk for recovery.

singapore -- the finance chief steps aside. the surprise move will likely push back the power transition. more changes at credit suisse. the bank is tightening its financial terms for hedge funds and officers. it could signal a shift in the industry. haidi: -- shery: u.s. stocks touch another record on dovish comments from jared powell. the s&p 500 was higher than tack and consumer discretionary stocks. the 10 year yields being sent down. we have jobless claims going the wrong direction for a second week. energy stocks led the declines. crudes futures have been stuck in narrowband. we do have u.s. futures at the moment heading higher. let's turn to sophie for a check of what to expect in asia. sophie: japan, a company

restarting output as a fire hit the plants on april 19 and this -- broadly speaking looking at asian stocks, they could cap a two week gain with futures -- keeping a close eye on singapore's reaction to the political pieces. the aussie dollar heading for the first weekly gain. the yen is set to snap a two-week decline, now trading around 109. shorts got unwound and chinese inflation is the headline. it will likely offset the pickup we have seen in energy. the trend globally has been for higher food prices, which is hurting for households across

the world, and that is keeping inflation risks top of mind. with that, flipping the board in india, and consumer confidence has fallen to near record rose. that is around income as well as pricing, and this is according to the latest survey. price pressures have cap the bank from further easing. india's government needs to pull the country out of this economic dip, saying that policy needs to take the lead. haidi: fed chair jerome powell reassuring investors that his dovish is not going to change even after a report says that the economy is ready to rebound. we heard jay powell praising the latest jobs report, but still treading that line saying it is not enough yet. what is his argument?

kathleen: it is simple. there is no would doubt, he said this was a great jobs report in march, nearly a million new jobs created. we have also seen manufacturing, all of the purchasing manager indexes on fire, but jay powell is looking at it and saying, you know, it looks good, but we are not where we need to be yet. fed chair: we got a taste of what it will look like with the march employment report. close to a million jobs. we want to see a string of months like that so we can begin to show progress towards our goals. the recovery remains uneven and incomplete. kathleen: uneven recovery so he is not quite pleased. there was no questions asked of the panel he was on about the stimulus. they warned the two acknowledge -- they warned that -- are they going to start changing the tunes just a little.

basically, when we got the fed minutes, it was a big tipoff to what jay powell would say today because how they describe the economy, how they describe the recovery, it is not a glass is half-full but a glass as half empty. shery: chair powell really sticking to his guns on the tapering, not now, not for a while. kathleen: don't hold your breath, that is basically what he is saying and there is a phrase that is becoming one of those stock phrases to be remembered for years, cannot do anything until substantial further progress is made towards the fed's goal of full employment and inflation and exceeding 2% or staying above. that is what you need to see before they even think about tapering. chair powell: what we have said about our asset purchases is that they will continue at the current pace until we substantial further progress at

our goals. that will mean actual progress. we are not looking at forecasts, but we are looking at actual progress towards our goals. we will be outward to mentor -- be able to measure that towards maximum employment. i would look at global vaccination as a risk. kathleen: on this panel, jay powell also mentioned driving past homeless encampments in d.c. and saying that there are millions unemployed. the fed knows you are there, we are going to help you. that is what it is. he sees progress but he wants more. he does not want to get ahead of it and trip it up, so that is why he said all of the kinds of things he said today and why he will continue. shery: kathleen hays. and returning with a big interview in the next hour, san francisco fed president mary daly joining us exclusively at 9:30 am in sydney, 7:30 p.m. in new york. our next guest expects the interest rate to moves to start

cooling off soon. let's discuss the broader market implications with brad ewing -- brett ewing. always great having you with us. the rate conversation is still front and center especially when you take a look at the s&p 500 and that is the tv char on the bloomberg showing. where are we headed here? brett: i ultimately believe that the 10 year treasury rate is going to continue probably to move up through the end of the year. what is important for your viewers to understand is what relatively matters to these markets is it is all about the rate of change. the first three months of this year, we had a rate of change in the 10 year treasury and we really have not seen any movies like that in quite a while, and they are quite historical. we had mortgage rates jump up 25% in six weeks, period. those are historical moves.

what we think is a 10 year treasury will probably try to stabilize around this level, but then start slowly moving up through the end of the year. shery: for we have been talking about breadth issues in a rally, but it seems that we are seeing unusually broad gains across the market. how positive is it for future gains? brett: we think this is positive for the markets. we have been waiting for this moment and we've been putting out notes throughout earlier this year about the breadth and the back-and-forth. what the market's understanding is that the vaccine rollout is real, it is happening, and i think that the back-and-forth, the rocking of the boat between the reopening trade and the large-cap tech is about to

wane and as we move forward through the year, we will see that continue to improve. it will be quite fruitful for the equity markets. haidi: when it comes to the equity markets, how much does the risk does the difficulty of getting all of the part of this ambitious infrastructure plan through? brett: it is going to be a battle. i think moving forward with infrastructure, you are seeing

about one level, the democrats talking about another level, and even within the democratic party, there is some different opinions there. we will see how long it takes to get through. i think the market would love to see some advancement on this infrastructure. you see that on some of the industrial stocks, material stocks already pricing in that something is going to be done. we will see, but i think it is important that we move forward on infrastructure. where it lands is the million-dollar question. haidi: where do you see the opportunities? are there companies are sectors that you like in particular? brett: yeah. volatility, the vix just hit a low going back to february 2020. we have not seen levels like this in quite a while, but we continue to really love the housing market. i think the fundamentals in the united states for housing, there are many years that this can play out. there is not enough inventory. specifically, there is a few different names within that area. we have been recommending them

for quite a while. it got incredible retail growth story and they are really disrupting the mom-and-pop local retailers, kind of like home depot and lowes did with the hardware stores. haidi: always great to have you with us, brett ewing. let's get you to vonnie quinn with the first word headlines. vonnie: singapore's finance has stepped aside as the designated successor to prime minister lee. in a letter, he said the pandemic meant he would be too old to take the post when the crisis is over. the surprise move will likely push back a long telegraphed power transition. lee signaled the process could take several years with the party aiming to have successor in place i the next election in 2025. the u.s. has added seven chinese

firms to a list which bans them from receiving american exports. they are accused of helping to build supercomputers used in china's military efforts. it means that u.s. exporters will need the commerce department's authorization to do business with them. that will not prevent the firms from getting products made by tmsc. italy's prime minister revealed that his government recently blocked the chinese takeover of a semiconductor company. mario draghi says that he backs an extension of so-called golden power rules to protect local industries. the eu nations have been scrambling after last year's pandemic left many vulnerable to takeovers. indian prime minister says that he is trying to boost capacity to make vaccines as new coronavirus infections surged to a record. several states have warned of vaccine shortage with mumbai's state saying that it is just

three days worth of doses in stock. india reported a daily record of over 126,000 cases thursday with that state accounting from a staff of those. australia is recommending people under 50 avoid taking the astrazeneca vaccine amid warnings to a link of a rare blood clots. the government prefers the five -- pfizer is shot for that age range. this is after the eu found the possible links between vaccine and blood clotting issues. global news, 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. >> still ahead, more on the vaccine rollout changes in australia. we speak with a professor at you nsw. plus, bill long was a $20

billion wail and then lost it all and two days. details on that and the changes that credit suisse is making. this is bloomberg. ♪ this is bloomberg. ♪

♪ haidi: more changes at a sweeties amidst the implosion with financing terms for hedge funds. it is a move that could signal a broader shift in industry practices. our reporter joins us now. this continues to reverberate across the industry. do these changes flag longer-term trends to come across the broader sector? >>

-- >> with a little more than 200 million dollars, 400 million dollars of capital, but from that point to becoming something which meant capital in excess of $20 billion in 2020 one, that is extraordinary. that would have garnered a lot of attention in just that one category. but stocks rising -- the financial crisis seems to be

leveraged, and he built up a concentrated portfolio. and he had picked up a huge chunk of the overall holdings in those stocks and it was going to every prime broker, every major financier on wall street in japan, and seeking leverage, borrowing money so that it could increase the amount and it was betting on the stocks, and leverage can obviously amplify return, but when the wages go against you, it could make you hurt big time and that is how you lose $20 billion in two days. shery: incredible. sridhar natarajan in new york, our finance reporter.

we will have more from the former chief of credit suisse saying that the bank should not be judged on the fallout alone. he cites the companies past success including during the 2008 financial crisis. >> it is clearly -- issues around risk are extremely important, they take a lot of focus, and large financial organizations are complex, so clearly it does take a lot of focus, it takes people really understand the business and are focused on it, and yet as you mentioned, with large complex organizations, it is not unique in that these issues come up from time to time, and i would say on credit suisse, and i am not involved in it, and i am a big booster of credit suisse's health, so i have a perspective. i do think they have great business and great franchise,

and great people. you have to put that in perspective, but it definitely is -- it is something where you have to have -- you have to have the dna and the approach within the organization. i would point out, for instance at credit suisse, you may recall that for instance during the financial crisis, credit suisse was one of the banks that did not have any government bailout and was considered to have managed the best through that crisis. there is a lot of dna around management. >> the regulators did step up i believe the regulations. from your perspective, did they go far enough, or did they go to part? >> obviously there were different waves, but initially, there were a lot of reactions, many of which made sense, and one of the things we did at credit suisse, we were very

involved in trying to work out what were some responsible reactions to -- that needed to be put in place as a result of the crisis, and i think that we did that and obviously there may have been some accesses on the regulatory side that may have had the unintended negative consequences are went too far, but generally, a lot of the measures made sense. haidi: that was the former credit suisse ceo brady dougan speaking there. singapore's plan for its next leader has been thrown into doubt. we will discuss what that means with the prime minister and his possible successors. this is bloomberg. ♪ s bloomberg. ♪

♪ haidi: there has been a blow to singapore as long telegraphed

power transition with the man expected to take over the reins stepping aside. let's get to our reporter. this is a surprise move. julia: yes, it certainly was. the finance minister has bowed out saying that singapore needs a younger leader to succeed the prime minister. in a letter addressed to the prime minister who turned 60 this year said that the pandemic meant that he would likely be too old to take over as prime minister which the crisis with it being completely over which the government estimates is five years from now. he said they need a leader that will rebuild singapore post-covid 19 but also the next phase. he is a careerist naval servant and politician, but he is also the finance minister. he has one a lot of allies. he did have a poor than expected showing in last year's election. heng making it clear the

election is not the reason he is stepping aside and he said and a press conference that he does not want to take on any job that he cannot deliver. those who work with them knows that he is a workaholic and he puts his heart and soul into what he does and that a younger leader needs to succeed. he will step aside, and the next cabinet reshuffle which happened about two weeks from now. haidi: the big question is who is likely to succeed pm lee? juliette: indeed, and this has the 32 member fourth-generation members. lee has signaled that he will step down by the time he turned 70 and 2022, but last year he reaffirmed his pledge to stay until the country was in good working order that also followed the weak election performance by the ruling people's action party. lee says a successor will be in

place by the next elections in 2025. possible successors here and the administrator for trade, he is 51, the administer -- minister for transport, also 51, and lawrence wong also speaking about singapore's covid efforts, he is 48. haidi: juliette saly in singapore and do not miss out on two exclusive interviews on daybreak: asia. we will be speaking with the e-commerce giant which is valued at close to a billion dollars. coming up on debris custom -- daybreak australia, australia guiding against giving the astrazeneca shot two people under 50. joining us from sydney with their thoughts, this is bloomberg. ♪ ♪

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shery: you are watching daybreak australia. vonnie: i am vonnie quinn with the first world headlines. federal reserve chair jay powell says he is more concerned about rising infections than rising prices. powell played down the risk that it -- inflation to get out of control. he also said the fed has the necessary tools to deal with rising prices. president joe biden has announced the set of executive actions to curb gun violence. he is urging congress to adopt

stricter laws while denying the new measures infringe on americans second amendment rights. one action would cover so-called ghost guns, assembled from kits without serial numbers. and other mass shooting left six people dead in south carolina including two children, just before joe biden spoke. the u.k. has gone to the -- a move that could fuel tensions with china. he fled to london last year after china introduced a sweeping national security powers for the former british colony. he faces arrest under the legislation if he returns. brazil reported 4239 coronavirus related deaths thursday. the country's highest single day toll of the pandemic. cases rose to just over 13 million as the virus spread continues to worsen in latin america is largest country.

the institution that is making vaccines for brazil is reporting delays. global news, 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. haidi: the latest fallout for the astrazeneca vaccine is here and asked really aware that government is now guiding from getting the astrazeneca jab for people under the age of 50. a professor and advisor to the world health organization, joining us from sydney. always great to have you with us. how much of this doesn't impact the logistical rollout of the vaccine program and asked really a which we already know is very much behind, particularly compared to the rest of the

world, and how much does this create the issue of more heightened vaccine hesitancy as well? >> good morning. first of all, i don't think it impacts hesitancy, in fact, it probably does the opposite. it should tell the community and australia that the authorities are willing to listen to science, and change tech. that is a very brave thing to do. we were already slow in the rollout and i had estimated that we have been lucky for all of australians with just one dose by the end of the year, and we will still need 6.3 million requiring second dose between january and march next year. so we already had a supply problem. this will add to the problem, but the one good things about this is that there is only 21 days between the first and second shot with pfizer as

opposed to three months. we put out a rollout with astrazeneca even further. we are relying on supply with this new decision. haidi: assuming that there is adequate supply which is obviously a big assumption, what about the actual rollout, because that has been subject to criticism. the infra-structure that is in place by the government. >> absolutely, we have gotten up to two to three thousand sites for injections around australia, but they are only going to see small amounts each day, and that is a painful way to roll it out to with clinicians waiting for their doses. you can keep it in the fridge.

and some patients do not have agp or their gp do not have approval to give vaccinations and then they have problems to their daily dosing. so all of it is a little slow, and clumsy. and authorities that is not the mass vaccination. and such as in the stadium are in a park, or in a university campus, so that when you have the space to do thousands.

shery: talking about the ashes in because shot last year, there were great hopes that said that this would go to developing nations, to poorer nations because it is cheaper and easier to transport. what happens to these nations now? >> these nations will still use astrazeneca. it is a very good vaccine, yes, there have been links with clotting this order with it, but every vaccine has a side effect, has an issue. we are looking at each one of them under a microscope. there is about one in a million chance of having a clot even without a vaccine, and countries, particularly the lower income countries that have high numbers of infection will decide that that risk is better to take than the risk of covid. so it is all about where you are in the pandemic and what you are

still willing to take, and australia is not willing to take any risk, so they have gone for pfizer, but other countries will say that the risk given that they have gotten a high level of infection is infinitesimal compared to the risk of covid. shery: i have family in south america and they really have no choice in vaccinations right now. they are hearing that the chinese are russian vaccine is available, but i am hesitant because the data has not been transparent. are those vaccine safe? >> the data has not been transparent. it has not been overly transparent with any of the vaccines. we really do need a website for every single vaccine, j&j, pfizer, astrazeneca, sinovac's, and novavax when we eventually get it. i take your points, it is difficult for countries and people like yourself with your

family who are worried about side effects, but we do not have any evaluation of the side effects at the moment. however, i cannot imagine that china would want to roll out a vaccine, given that they are using this as diplomacy to then roll it out and have enormous numbers of adverse events. yes, it would be better to see the data. shery: before you go, how confident are you that these travel bubbles will go ahead and go successfully, given that we are dealing with uneven levels of immunity and vaccination with the countries that are involved? >> good point. you really have to have the travel bubbles opened when most of the population has been vaccinated and have their full vaccination, so for the moment,

the travel bubble for australia and new zealand can go ahead because we both got no circulation even if we got the one or two people to acquire it. for australia/new zealand, that risk is around the quarantine program in those programs need to be very tight and all start related and their families, related to that program need to have a very good vaccine that has high levels of efficacy. such as pfizer, and then it will not to leak out into the community, and then we can travel freely. between us and say taiwan, or south korea, we might be able to open up, but it is probably best we wait until most of the countries of either destination have a vaccine. i would going to go back into the quarantine program, but that

means that tens of thousands of people every day returning. we are going to have to have a system that says, have you had a vaccine, yes, and you also need a rapid test to see whether or not you bring it back in. there will be our proportion with every single type of vaccine. we are still going to have to have a rapid test at the border when we come in and potentially a take-home test. shery: great having your thoughts, mary mclaws with her insight since the vaccination campaign around the world. thank you. the pandemic also weighed on japanese beverage maker's bottom line. the prophet slipping last year

as losing a share of its market to rivals. but demand for its super dry beer can help earnings bounce back. to the ceo said that he is focusing on growing outside of asahi's domestic markets. >> we are moving to exchanging the best practice close to countries which we are running, such as europe and japan. also, we aim to expand the rollout such as asahi super dry and the ale to all of the areas in each country -- a class all

over the countries. i have the experience in australia. i increase -- 2012 to 2017 and i am confident. two other countries, globally. >> you have given this very ambitious goal of making asahi's super dry beer as a top brand by 2030. can you speak about which

countries will be most important to reach those goals? >> every big city in every big country, but especially, we aim the super dry in london and shanghai, beijing, and some big cities, and europe and paris, and bangkok. >> the olympics are set for july and you guys are a sponsor, however it is going to happen in a much scaled-down event with spectators. what impact do you think that will have with asahi and how are

you feeling about the liv-ex overall -- the olympics overall? >> so far, we have been enjoying substantial benefit. we are satisfied with partnership of olympic games. haidi: asahi ceo speaking with bloomberg. coming up next, an exclusive chat with the ceo of hong kong's exclusive company. this is bloomberg. ♪

♪ shery: time now for the morning calls with sophie kamaruddin in hong kong. the tug-of-war with rates continues. what is the outlook? sophie:

-- i want to highlight what citi has to say. citi expecting demand for asian currency bonds to be weighed by heavy supply due to seasonality as well as governments like korea expected to issue more debt. yields than expected to drift lower and the bank says this could be a window to trim inflation exposure for the likes of indonesia. the finance ministry there citing no urgency to meet sales targets. also seeing demand, so yields expected to drift even lower, particularly for those low yields in the asian space. haidi: yields when it comes to indian bonds have been coming under pressure. what are you seeing when it comes to the rupee outlook? sophie: when it comes to the rupee outlook, economists at nomura had to say that the rbi

is increasing the vulnerability as it suggests that the central bank wants to cap yields in india with the risk of more future buying of bonds. nomura has exhibited the long loop of its exhibition on the back of that. haidi: one of hong kong's biggest real estate company new world development doubling down onto its expansion into health care and insurance as it targets more business in mainland china. the executive vice chairman adrian chong spoke exclusively to bloomberg. adrian: this is doing well. we met our targets to our first half, and we have already been on track around six to percent of our targets, and as we look at january and february, we are seeing a big recovery for retail sales as well.

for cells in hong kong, we are increasing 30% year-over-year, and in china, we are doing 20 percent. we are recovering well. david: the bay area, that is a big priority area for you guys. give us the idea, what is the plan, the next five years? adrian: so we have spent over $30 billion in acquiring 1.5 million square meters of land. a lot people were asking why were you spending so much in greater bay, and the reason is simple. it is 5% of china's population, but 13% of the gdp of china. the population is growing, disposable income is growing, and that is acting very young. this is going to be important and has a big potential in disposable income and also marketplace exactly like a south

korea. 70 million population is exactly like south korea. so big market and younger audience. david: do you get a sense that you are underinvested? the $30 billion now seem like a small number? are you looking to increase your capex and exposure to the gba? adrian: yes, yes, incrementally adding more about the most important is finding the right location. we are focused on quality land, so we do not want to have a bidding war with our peers, but really find a good location and also quality -- to provide quality services. david: you mentioned to triple digit growth in china last year. is that sustainable, is that the rate of growth that realistically we can expect over the next five years? adrian: our guidance for growth

is double-digit rental growth from all projects. for residential projects, we are guiding a double-digit contracted sales in the next five years as well. we are very optimistic with the area and china as a whole. david: double digits, 11 to 99, is it closer to 11 or 99? adrian: lower teens. david: what would the revenue split look like in vision to you? do you see them divvying up, what does it look like to you? adrian in five: or 10 years, hopefully the healthcare services will grow, let's talk about property development and recurring in, and product development, probably 50 percent by 2025.

so getting rent from shopping malls and offices, versus the services. in five to seven years, hopefully we can go to 20% to 30%. that is a very high competition. david: the political environment, the question is even doing business and hong kong, is it going to get more challenging because of the complexities of the political environment. it is neither black-and-white, what do you think? what does the future of hong kong business look like because the future is looking different? adrian: we are optimistic with hong kong. we will grow together with hong kong. our horizon is long term. in the long run, we think it is good. haidi: new world executive vice chairman adrian cheng speaking to david ingles. pre-more ahead, this is bloomberg. ♪

♪ shery: here is a quick check of the latest business flash headlines. bank of america will give it to junior investment bankers a pay increase next month. this is the latest move by a wall street banker to address pressures. associates and vps will get an extra $25,000. the work till you drop culture has come to the fore amidst

pandemic related pressures. sources tell bloomberg that china while -- the move set to be a part of the firms plan to become profitable and avoid debt restructuring. they submitted the plan to regulators and has apparently received a positive initial feedback. huarong spooked investors by delaying its earnings report. a plan to share property management business in china for at least a half $1 billion. the potential sale has drawn interest from competitors and financial investors. the firm's real estate brokerage and valuation business are not part of the sale. last year, jll generated 82% of its revenue from the greater china region. haidi: taking a look at the day ahead in australia.

the australian government is guiding against giving astrazeneca's vaccine to people under the age of 60 amid warnings to links of a rare blood clot. we will be watching carefully. we are also looking at the consolidation theme amongst australia's pension funds. we have seen a wave of mergers and huge inflows putting them on a path of growth to $4.1 trillion. shery: we do have two exclusive interviews on daybreak asia, so stick around, the san francisco bed president mary daly joins in the next hour and we speak to e-commerce giant -- cofounder and ceo with us from singapore. daybreak: asia is next. this is bloomberg. ♪

♪ haidi: a good morning. we are counting down to asia's major market open. shery: welcome to daybreak: asia. jay powell downplays inflation risks once again, saying he will do what it takes to support the economy. we speak to san francisco fed president mary daly.