a kohler walk-in bath provides independence with peace of mind. call... for fifteen hundred dollars off your kohler walk-in bath. visit kohlerwalkinbath.com for more info. haidi: good morning and welcome to daybreak australia. we are carting down to ages major market opened. these are your top stories this hour. hitting a record high, investors debt rising inflation working to slow stimulus measures. the acceleration continues to pressure policymakers.

we see specifically the central bank president's about what they are doing to boost the economy during the pandemic. the positive johnson & johnson's covert vaccines, europe and other regions, plus, china signals over big tech has not engine -- has not ended. shery: and this is the picture on wall street, futures holding steady. another record high. we had market following vaccine use, the s&p 500, led by utilities and consumer discretionary stocks. we do have earnings season kicking off on wednesday. treasury also extending gains after the option of 30 or bond saw strong demands.

also, we saw a drop in yields despite data showing inflation. kicking higher after the futures gained in the regular session, predicting, see how were setting up in the asian section. >> this wednesday brings us policy deficient from singapore and new zealand at of the kiwi dollar. getting some ground, up 100% today. it was down due to the quick pace of interest rates rising in new zealand. when it comes to central banks, the latest b of a fund manager survey, taking the temperature of bond markets, that is the biggest entity risk. today expecting to maintain. pulling up the chart on the terminal, asian credit markets focus after we saw investment grade risk rising amidst

speculation of restructuring chinese bad debt manager. the bond rout in the company's bonds, this episode seeking to help policymakers on the mainland. one of the outcomes expecting more defaults in china. haidi: in the u.s., health officials probing a rare had clot -- a rare blood clot from the johnson & johnson vaccine, recommending a suspension in its use. >> the timeframe will depend on what we learned of the next few days. however, we expect it to be a matter of days for this pause. haidi: the temporary halt represents a setback for the u.s. inoculation campaign which needs to outcome hesitancy's. look at the latest from our

health care reporter. michelle, as these events are respected -- are expected with any vaccines, given that these vaccines are so new, this worsen the level of hesitancy we see amongst people? >> people will definitely be more concerned about getting a vaccine. not working -- not only worried about serious but deadly sound effects, it is important to keep in mind how rare this case is. this blood clot we are talking about, blood clots develop in the brain, they have seen it in just six out of almost 7 million people who were getting the johnson & johnson vaccine. that number is unbelievably low. the thing that public health officials are concerned about is they want to make sure that doctors are aware of what they should do when they had a patient who develops it. and is not just the problem itself that is going to be immediately fatal, the way that

we would normally treat a blood clot could potentially harm these people. just the way to know that you shove an epipen ready when you're getting an mnr a vaccine in case someone has an anaphylactic reaction to it. and you can recover from that. we need to know about the blood clots. shery: as we speak we are getting a response from johnson & johnson saying they are aware of an extremely rare disorder and they will delay the rollout of vaccinations and europe. staying on that, there is a lot of concern about j&j. they will saying they will pause vaccinations in all clinical trials. we are getting the full statement coming from j&j. their response to that pause, both in the u.s. and also in europe for they will proactively delay the rollout of the vaccines in europe, and they are aware of this extremely rare disorder. let's turn to some more positive views.

because, we had some good news when it comes to the modernity effectiveness over time. >> we are getting great news when it comes to the nra vaccines, we know they are very effective. we is 90% effective when it comes to. higher accuracy rates as well. dramatic, protective numbers. the concern of the mnr a vaccine is that gives them to everywhere the world. just a little bit more complicated to use, that will be excited from the things i johnson & johnson especially one-shot and astrazeneca shot with two. great news, the moderna vaccine coming out as well. shery: let's now get over to

vonnie quinn with the first word headlines. in fact, we don't have her on the moment, but the johnson & johnson vaccine over a link to a rare blood clotting disorder. official saying that both the j&j and after zeneca vaccines used similar technology. and both have raised concerns over blood clotting. earlier this week, australia abandoned its goal of inoculating its entire adult population by year end. francis prime minister has announced the suspension to and from brazilian definitely. it stems from fears over a more contagious variant of covid-19. relatively few known cases of the brazilian strain. it requires them to get a negative test and quarantine. china will curve anti-competitive practices within the next month.

they were summoned by regulators on tuesday, it was find a record $2.8 million last week. 34 firms will have to undergo inspections and pledge to end abuses. marking dominance among other violations. the white house has sent an unofficial delegation to taiwan is president biden according to voters, senator chris dodd and the debbie secretary of state was sent to taipei and when one official calls a personal signal of abides commitment to the island. this comes as -- on the anniversary of something biden voted for as a senator. iran is booking up it's a rainy enrichment -- uranium enrichment program. toronto will start to reduce

highly and reached for iridium first time. the move will add to tensions as arad prepares to resume talks in vienna in reviving the landmark 2015 accord. those were the first word headlines, heidi. haidi: coming up next, the vaccine rollout we have been talking about will be impacting the outlook for recovery. we will speak with. plus, you don't want to miss out on a big interview later this hour. brazil's president joining us expressively at half past the hour. this is bloomberg. ♪

haidi: u.s. stocks climbed to record highs, bond yields, higher forecast rising inflation. markets also with the negative

exposes while the pandemic front, that cause the johnson & johnson coven vaccine amid concerns of blood clots. great to have you as always. our investors shrugging off the negative news? are they concerned about potential speed bumps in the vaccination rollout now that we have had adverse events associated with at least two vaccines? >> thanks for having me with you. the market is sort of separated from the news we heard today. things moving the market are epic financial stimulus and support for fiscal and monetary policy. we have had the speediest recovery ever.

investors are looking at that. we are seeing opportunity, gdp growth expected to be positive. a lot of momentum for moving the market forward. in terms of today's news, is not reassuring, particularly for the patient's out there. if you look at the number, it is less than one in a million, not to say that is not significant. of course, for the people who have these issues. there seem to be side effects in a lot of different vaccines out of covid. i think a lot of investors look at data and say they are going to figure this out, this could be a side effect that could be managed. cohen has a bigger risk than others do. -- covid has a bigger risk. i don't think it is pushing back the markets is much as you would worry about. haidi: is the rotation trade overdone now? you are saying there are new pound opportunities.

it would so into the last decade. >> yeah, absolutely, i have been a fan of the things and the big tech names for the last decade. even going into this year, particularly over the last couple of months when we started talking about getting life back to america, things like that. we saw the 10 year moving. of course the casinos and hotels, things like that. they were great bargain opportunities. but, if you look a lot of those names, some of them are at all-time highs. you can certainly pick your spots there. there are different names in the services sector, cyclical and other types of names like carnival cruise. things that aren't at all-time highs, you still have opportunity there. the growth name, the thing names have pulled back. in the last couple of weeks. they were off of the all-time

highs. all the sudden the chief rotation that went to the reopening trade kind of neglected the growth names, they fell back a little bit. the story there still resonates. we are going to continued meeting technology, continuing to develop and support the new way we live. also the next-generation technology. semi conductors, chips, that's the future. shery: we are kicking off turning season and we expected to be an easy comparison, are there risks? >> yeah, i think, we have such high expectations for earnings season that i think one of the biggest risks in the current level we are seeing now is that earnings don't deliver. of course, with the spread of covid, that's a risk. inflation is a risk. 10-year could be a risk. i think that would set the market back a little bit because we are expecting pretty heavy good news.

and increased earnings estimates going forward. shery: let's turn to bitcoin pico -- because we saw that bullish sentiment, expecting the coinbase global going public. showing a tumultuous ride, even just now, under pressure after reaching all-time highs. what is the trajectory here? >> in my opinion the trajectory is onward and upward. a lot has changed in the past year, as become far more acceptable by the masses than it had before. part of that is a massive price appreciation, part of that is that you can use it to buy things you know about. you can use it to buy a tesla, it can be a payment on paypal or venmo. i think the fact that has become something adopted in society as a potential currency coupled with large institutions as a potential inflation head, this

limited supply and demand, 21 million bumping up a couple million off of that in terms of available coin specifically for bitcoin. it's huge. 56 million viewers -- users, that is tough to beat. they don't have those numbers in some cases. i think it is going to be an epic ipo. shery: we will be watching closely. of course, don't miss an exclusive conversation coming up later this hour. the brazil central bank president joins us at half past the hour to discuss the outlook for rates and recovery. haidi: speaking of central banks, we are watching today, expected to keep policy unchanged. it will acknowledge the setback. another big story we are watching, australian trade

ministers will be traveling for face-to-face talks with the counterparts in the eu on thursday to discuss vaccine supply. after the block restriction. the executive vice president will be appointed acting ceo next week. coming up next, china warns dozens of the top internet countries. it signals a crackdown on big tech far from over. we have the latest next. this is bloomberg. ♪

shery: he is alibaba's example. chinese regulators put somebody at 34 of china's top 34 -- top internet companies, warning

them. it we have seen the end of chinese text golden age, let's get more from the asian tech executive editor. easier, -- peter, what are the implications of these coordinated moves against tech giants? >> it was a very interesting week. you saw a flurry of action beginning on saturday. it was capped with this meeting that you referred to, companies being summoned to beijing by the regulators. and told that they need to fix their behaviors within the next month for they will face consequences. these were some of the biggest tech companies in china. as you said, they were saying you need to heed the example we have set with alibaba. regulators are concerned about a few different kinds of competitive behavior, including

forced exclusivity. so, in the case of alibaba and the e-commerce business, pressure merchants to be only their e-commerce platform. that has kept up competitors that are trying to compete with alibaba in another case, some of these other firms too. they are also concerned about some of the acquisitions that have happened. where the powerful companies have maintained their power by either taking stakes in smaller companies or buying other companies. so, it is a broad range of measures. haidi: how does this sit within the broader china cracked of tech? what does it -- what is it that beijing once? >> they have moved very quickly. then began the antitrust investigation into jack ma's empire in the financial arm last year. they have already come to the end of the antitrust investigation.

first, the antitrust find against alibaba. they are pushing into a holding company that is going to be regulated by the central bank. the idea is to curb some of the anti-competitive behaviors. and the target seems to be to allow smaller companies to compete in some of the areas that have been dominated by the giants. alibaba has had tremendous sway over the tech industry particularly. probably because they dominate the two business -- two biggest businesses. and because they become venture capitalists for the startups. two different spheres that are dominated by the players. there is not a lot of room for competitors to come in. they want to change that. haidi: peter elstrom there. let's get you a quick check on the latest business flash headlines. china's finance ministry to be

considering track transferring asset wealth management. according to a source, one of the proposed transfers for the investments is that it has more experience resulting in debt risk. toshiba is facing a possible bidding war on the departure inc. ceo. they are weighing an offer they could outbid the $21 billion proposal. a source tells us brookfield asset management exploring a bid. meanwhile, there is a report that the ceo will be stepping down later today after coming under pressure from investors and employees. and, more fallout from the archegos. credit suisse offering large trades and things linked. su keenan joins us now.

>> the lending restrictions to hedge funds and family office funding, this is a very lucrative part of any major bank or brokerages. it appears to be around to all the fallout from archegos. credit suisse is one of the firms that suffered a multibillion. restrictions includes previously granted exceptions, that's according to a person close to the matter. japan's largest brokerage firm is also examining the cause of the losses. an internal probe by the bank. credit suisse and another group of profile -- high-profile lenders forced to propose an epic margin call on archegos capital in late march, also

tightening lending. this is according to sources. the swiss bank is also planning a sweeping overhaul of the hedge fund business. the center of the incident, and has already replaced at least seven top executives. that includes the head of the investment bank, the chief officer, now we are hearing there on a -- they are still unloading large blocks of stocks tied to the mess. shery: tell us more about the around the block phrase, also news about some of the more impact on credit suisse given what happened with archegos. >> it's interesting that the latest round of block trades, credit suisse selling a large block that includes many archegos of the stocks in the archegos archegos mess. we don't is falling along the shares. these are said to be worth about $2.1 billion. in appears they have been yet to

unwind their positions. jp morgan has said the downfall for archegos would result in about 10 billion dollars worth of losses. credit suisse identified as having the largest loss. bloomberg news is also learned that the bank is planning to slash the amount of money set aside for employee bonuses by hundreds of millions of dollars. and this will be used to reduce some of the dent from archegos to a spot of line. bloomberg has learned from people close to the matter that there are cuts to a pool of staff compensation. and other one-off items would come to about $600 million. that would go to the underlying profit. back to you. shery: up next, an exclusive interview with the central bank president of brazil. his outlook for recovery rates and more. this is bloomberg.

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full body results like total gym. and right now you can try it risk free and enjoy special savings too! get on demand workouts free, free shipping and more. call now! shery: welcome back today break asia, i'm shery in new york. we want to welcome bloomberg television viewers and radio listeners all over the world. we have continued to see accelerating inflation pressuring policymakers and brazil. the central bank has signaled more rate hikes to come despite the economy still reeling from the fallout of rising infections. joining me now is the president of brazil's central bank. great to have you with us, thank you. >> thank you for the opportunity.

shery: let's get a cup -- must get started with a conversation of rate hikes. right now, pricing in a rate above 6% by year end. what do you make of this? >> i think it's important to understand the market pricing. when you look at interest rates for which you see, it's referring to a fiscal premium. there has been a very big fiscal expansion. similar to the gas prices, we see that. for us, we would look at inflation. looking at inflation is where we are trying to give all of the explanations.

shery: economists are also projecting rate above 5%. will the bank need to be more aggressive come your end? >> we don't forecast where we want it to be, we are basically saying is we understand the process of inflation going higher. a lot of this process has to do with components that are temporary. we have commodities that not only infect inflation. inflect invasion in other places. with energy and also food items, also prices in the industry, we have had depreciation. we understand it's taking place, we understand this process has

some contamination into the poor inflation numbers. we are saying what we are seeing and why we think it's important to do the moves we did policy. we keep how this process is developing. shery: will another 75 basis points to help when it comes to inflationary pressures? >> we look at what is the horizon where we need to act. now, the most relevant, we look at what needs to be done with inflation. we think towards the end of the year, inflation will go back forward. we're just rate so we have our target. we also see it in 2022, those

things out of line. shery: but you are not planning to take the neutral rates and go back to the neutral rates this year, you're still planning to lead stimulus for 2021. >> the first question every meeting is do we need, the question is we do. then the question is how will it be? remember, we place interest rates at two, we were envisioning demand that never happened. you talk about negative growth, the magnitude of eight, 9%. some people say inflation would be as low as one half percent. it is not adjusting inflation for what we think it should be, compared to the new rate. it's recognizing the interest rate we have now was set up for

something that never materialized. that's why we mention this process. shery: the concern right now is that all of the inflationary pressures you mention, you're considering those as temporary. we are already seeing second-round defense. how do you deal with that and when you decide to? >> when you look at, for example, from one company to another, and was 3.4 percent notice 5%. when you look inside the number, most of those things are displayed by commodity prices and the depreciation and the fact that this has a chance. we think there is no structural contamination, most of the fact is temporary. we are going to look and see how it develops. there is a recent number of

inflation better than expected, we saw that before inflation was a bit lower than expected. so we need to watch. remember, we don't target this short, there is a horizon for what we do. we're looking at 2022. shery: by year end 2021, where do you expect inflation to be? >> are numbers 5%. when we move, the consensus is a little bit lower than 5%. moving higher at the process develops. shery: is there a concern that perhaps inflation expectation for 2022 will also be higher? >> one of the reasons we mentioned why were doing a move that is higher than the market expected, 2021 only stays for a while because you start moving

until 2022. that's what we thought we needed to move more until the market expects. at the end we need to do less. shery: could we see more pressure because of budget concerns and political noise? what will that mean for the central bank? >> when you look at the last couple of weeks or months, it is being a bit stable. for us, the important thing, we work under a system. the important thing is how to terminate the inflation and to its expectations. as we mentioned, something extraordinary happens.

exactly the condition we see now. we have indicated something different would happen. nothing is set in stone. we face different conditions now on. we think this is the most likely scenario. but we do have scenarios where we would be. shery: when you say act when needed, what does that mean? what level would reality yet? -- what level would real be at? >> it's about current inflation in the short term. and inspected inflation. shery: you've said that in the past, but with the real close to six, could you say it now increasing? >> we said was the persistence at the level was a high level of valuation.

the persistence has indicated to us, once again will we look at it, once the crisis. again, we need to see how that develops. remember in 2022 now. shery: are you considering any additional instruments to stabilize? >> the currency market, no. we do intervene, we don't target the level, we don't target the effects because it has influence on inflation expectations. we think that is given, we only act when we think the market is functional.

we think it is very important to communicate. shery: no regular dollar from the reserves them. >> we try to see what kind of function it is. we think about the volume we should use, and the next couple of days. shery: let's talk about fiscal risk, you have been very vocal about fiscal risk also about the impact of monetary policy. the spending cap rule the could be breached. what could force you to take another look at the outlook? >> we don't have a target, we do believe the fiscal that ends up

terminating and plate -- inflation. we think it is important. we don't need any kind of fiscal dominance. we do think that because we have a very large base in pandemic, it's important that we have an extraordinary ear, extraordinary measures, conversing the fiscal pack. we are remembering that the central bank doesn't move it forward. shery: let's take a look at the global macro environment as well. central bank has plunged low interest rates for longer but how much have you expect result at other developing nations to have before bay central bank start turning the sign? -- turning inside? >>'s repricing the inflation,

that is having an effect on the emerging market. that doesn't beat you will see a third inflation developing. does mean is, things are starting to happen in the same time, more stimulus, the vaccination which enabled the countries to reopen. at the same time, people? more the package. there are three elements, with the market is doing is repricing inflation. you can see that in the u.s. and other countries. just because it has an effect on the emerging market. with commodities rising, you do effect on inflation and the emerging market. number now you have commodities rising. without the currencies of

emerging-market appreciation, what we see is you have this element and most of the emerging-market on the inflation numbers. shery: are you worried about a surge of outflows? if you see perceived tightening in a vast economy. >> when you look at outflows you need to characterize it. brazil has, at some point in time, the public debt of more than 22%. it is now down to 7%. the fixed income in brazil is not that big. we are seeing up close, look at the different dynamics, group retention, more with external indexes. we don't think that is a huge problem. but, we do think we need to do

our homework. remembering also that when you look at the new element which is on the way back of the outflows that we have had, the emerging markets have a different situation than the past. shery: we have seen negative news when it comes to vaccinations, other problems with j&j or astrazeneca, are you factoring those in when you look ahead to the economic outlook for brazil given that the infections continue to sir? >> -- continue to sir? >> what we do is understand how the reopening of the economy is going to happen. look at all of those that have been repurposed, there is a

compromise delivery. measure with the government has repurposed. then taking out the age groups from the older to the younger. soon, how much people we will have vaccinated in terms of the age group. on top of that, we designed the first dose, and we look at the second dose. we look at the numbers we have, we think all of the conditions will start reopening, on the contrary, those that we have and what we are able to do in terms of vaccination we become more optimistic about the second semester. shery: finally, we are seeing a lot of political noise in brazil. how often do you speak to the prime minister and the

president, how close is the coronation? >> the coordination in times of crisis needs to be very good coordination. remember, once again we have learned that we need monetary policy and fiscal policy. everything was very coordinated. when decided into different parts, basically what you have is avoiding tax or delay tax. those are the finance. then you have monetary policy. that is the central bank. the way we work together, we design somewhat different. but, remembering the central

bank doesn't get involved. we don't want to mix monetary policy with fiscal policy. shery: please join us again soon. the central bank president of brazil, thank you. >> that you very much. shery: more insight on the economic outlook from around asia coming up on daybreak. imf asian-pacific deputy director and the japan chief will join us later. no missiles conversations. this is bluebird. ♪ -- this is bloomberg. ♪

>> i'm vonnie quinn with the first word headlines. the u.s. has recommended a pause on johnson & johnson's covid vaccine. while regulators resume -- review cases of blood clotting. six women who developed -- you received the shot developed a rare form a blood clotting in the brain. a cbc official says this could last a number of days. 6.8 million doses have been administered's -- administering the u.s.. modernity is to shot regiment is more than 95% effective overall beginning two weeks after the second dose, remains at the same

efficacy more than six months later. it also remains 95% effective in preventing severe cases in the same. the white officer who fatally shot a black man during a traffic stop in a minneapolis suburb has resigned. as has the city's police chief. they quit two days, and meant to fire a taser not a handgun. south korea's labeler minister -- labor minister said people will work alongside machines in a post-pandemic world. they tell bloomberg the government needs to play its part allowing laborers to move from one sector to another. >> first of all, korea has

advanced i.t. and a very high rate of automation compared to other countries. in the future, south korea is effect -- is expected to face a faster cage -- a faster change than other countries. i don't think humans will be completely replaced by machines, but it is important to learn how to work with machines well through job training. and it is necessary to increase adaptability for changes in the labor market, and how to move from an industry to emerging one. the korean government, not just the labor ministry but also with other relevant ministries will form a task force to deal with this issue. 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. i'm vonnie quinn. this is bloomberg. shery: time for morning calls ahead of the trading day.

the fate of china unclear, what is the outlook for morgan stanley? >> as investors brace for potential restructuring, they sandy base case will continue to have strong government support because and how important it is. so, it should be able to stabilize in the longer term. in the near term, while for bond student technicals and progress sentiment and offshore credit and china in the past few months. morgan stanley taking a cautious view on chinese high-yield, no catalyst to watch out for aside from rating, an announcement, refinancing. when two officers at the asset manager this month and next. haidi: australia's trade

minister's headed to europe for face-to-face talks. paul allen joins us now from sydney. they are struggling with the shortage of vaccines but also a shortage of the right vaccines. we know that the agreement with europe was largely over shipments of astrazeneca. what will be achieved here? paul: ideally to alleviate that shortage. to ensure that there is a context for supply for a shortage of vaccines, including more than 3 million outstanding doses of the ashes shot. europe is of course imposing export restrictions of the vaccines. here in australia, there is no community transmission of the war. the boss not going as planned, not only is there an shortage but the astrazeneca vaccine is no longer recommended for under

50. it might be challenging as well given the export controls. he does have other business to conduct there as well. including a discussion of free-trade agreements with europe of u.k.. shery: australia's health minister saying the country's borders could remain closed after everyone is vaccinated, why is that? >> he is saying the vaccination alone is no guarantee. there are a lot of other factors to consider, including transmission and longevity of protection, and the global impact as well. you can't just throw open the borders once the domestic population is vaccinated. as it stands, there shot until at least june. caps on quarantine spaces as well. that is going to leave 36,000 australian stranded overseas.

that will not be welcomed by them. it is not with the minister was to hear either. the tourism council sees vaccine rollout as the key to expanding that to other countries. they may be waiting for some time yet. shery: we will have more on the global efforts against the dynamic. -- against the pandemic. but first, a quick check at the latest business flash headlines. tesla has pledge to keep any data and collects in china in the country, addressing concerns over sensitive information being collected. a china official says the company abides, ceo elon musk says it will be used for spying.

they held first quarter revenue past estimate. another good unit jumped 52% on organic basis compared to last year. in asia, revenues of 86%. a key advisor during the covid crisis, europe was the weak link by 9%. kkr expected to raise more than a hundred billion dollars by 2022 after bringing in a record $44 billion last year. this is investors saw higher-yielding assets. speaking at a virtual investment day, the president said the company is seeking capital for more than 20 strategies this year. the asset manager has been among the most effective dealmakers during the pandemic. haidi: we will have more on the

global economic recovery coming up in the next hour. we will also be joined by a japan admissions chief a little bit later. you don't want to miss out on those conversations. this is bloomberg. ♪

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