no expensive machines, no expensive memberships. get off the floor with aerotrainer. go to aerotrainer.com to get yours now. haidi: good morning and welcome to daybreak australia. shery: good evening from new york, i'm shery ahn. haidi: jp morgan and goldman sachs smashing estimates. a landmark moment for crypto.

a 100 billion dollars valuation is public to view the euphoria. plus, fed chair jerome powell schedules out the exit play signaling a lasting scale. before any decision. shery: here is the picture on wall street, we are seeing futures rebounding after stocks fell from record highs. the nasdaq 500 with its lowest in three weeks. a drop below its opening price after direct listing. the s&p 500 down for tens of 1%. financials actually, surprisingly trading and dealmaking. at the moment under pressure. this after rallying to the highest level in four weeks. we have a bigger draw in crude. the likes of the iea and the eia as well. the dollar index was weaker against most g10 peers. haidi: i'll performers on the

other side of that dollar weakness with the kiwi and the aussie dollar share. to look at the aussie, topping the g10 group, commodities also touching the highest in about four weeks. in terms of the equities, draining pretty muted. find the most since about smell third. it is within reach, from a record high. pretty flat at the moment but it doesn't look like equities overall getting set for retreats following the u.s. action. shery: strong earnings from goldman, wells fargo, traders, investment bankers. loans on the decline. bankers taking it as a sign of economic strength.

let's get more from our wall street correspondence. jp morgan, stand out quarters for those company. what all the leverage be for growth in the future? >> they had knockout quarters in trading and investment banking. even though the ceo of goldman sachs had warned that it should be expectations having these for the second quarter. they did say that it was very active. we can expect many more deals ahead. goldman sachs brought in more than a billion dollars in revenue. jp morgan also saying those pipelines were very strong. goldman also highlighting areas where it could be efficient when it comes to crosscutting. still has a lot of operating leverage, even though insufficiency ratio is quite low at 53%. haidi: which of the results tell

us about the u.s. consumer given the trajectory of the pandemic recovery? >> we talked about how well investment banking was doing. there are still questions about loan demand in the u.s.. they are paying down their debt, they are not necessarily borrowing. jamie dimon of jp morgan had said in a second half of the year, he expects a strong, economic recovery. it is not a bad thing. a very good thing that consumers are taking over -- taking care of their own balance sheet. in my mind, i was thinking this morning when did we get so addicted to debt that we need to see more of it taking on. as i said, as rates get higher, autos are stronger in the quarter. does that continuing to the next quarter? wells fargo guided analyst to say in the second half of the year there could be more strengthened lending. particularly as it speaks to the business over time and credit card and investment banking. shery: when i moved to the u.s.,

this was an economy fueled by debt. >> absolutely. it is so funny because we interviewed about a month or so ago, going to business across the world. all the time on debt. even though he has a business founded on the heels of a moving debt market. shery: when it came to goldman executive, they seemed proud of how they handle that. they don't think this is a one-off, take a listen. this is the case -- >> this is the case of highly leveraged positions. they are pleased with how the firm handled it, the -- the reflection of engaged

communication and goldman sachs on the business and control side of the firm. >> for the firms impacted negatively, pretty tough. we are already seeing bonuses, when we heard from goldman, i had to rack my brain to remember, did they mention at risk management so many times before in their conference calls after earning? it was noticeable at this time. it was an director's response to our goes, it was a direct consolidation of the prime brokerage business. illicit that is set to continue.

haidi: for more analysis on the banking earnings, we are joined with five. the it over to vonnie quinn with the first word headlines. >> bernie made off, the architect behind the biggest ponzi scheme ever has died in federal prison in north carolina. he promised his clients billionaires, he cheated them out of more than $19 billion. madoff was sentenced to 119 years in prison in 2009. 80 two years old. johnson & johnson vaccine will remain on pause after saying more data is needed before is decision can be made. distribution of the vaccine will remain halted. seven people experienced serious adverse effects from the shots.

european nations are split over the j&j vaccine after reports of rare blood laughs and some recipients. some bloc members put a shot on hold. france, poland and hungary are moving forward. that exhilarated the review of the vaccine. they say for now, the benefits outweigh the risks. ron supreme leader has dismissed the 2015 nuclear deal. negotiations with world powers in vienna were upended after a suspected israeli attack on the main nuclear facility on the weekend. the comments, head of the resumption of vienna later on thursday. egypt has sees a giant container ship to block the suez canal.

authorities won an additional 900 million dollars from germany. the manager of the ever given. it is insured for third-party losses. they say the case is largely unsupported. nearly a week long blockage cause disruptions with logjams expected to continue in the coming weeks. 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. on vonnie quinn. this is bloomberg. shery: we will discuss comments and the progress in the country's rollout later. but, up next, fed chair jay powell said the u.s. economy appears to be at inflection point and poise for stronger growth. hear more from his interview with david rubenstein next. this is bloomberg. ♪

shery: fed chair jay powell believes the u.s. economy is at a turning point. it is place for stronger growth and more jobs as the country emerges from the covid-19 pandemic. speaking to david rubenstein, he said debt levels were sustainable for now but the coronavirus is still a major risk. >> the economy, at this point, seems to be at a bit of an inflection point. that makes sense with more widespread of vaccinations. strong fiscal policy, more support for monetary policy. you can see ridership on airplanes going up and people going back to restaurants. i think the march jobs report we recently got shows with that can look like. close to a million jobs in a month. we are going into a. of -- a period of faster growth.

there was a spike in cases, perhaps, it may be more difficult. we do see cases having been moved up a bit. i think we would be wise to keep wearing masks and be socially distance. daivd: when the fed does its analysis of the economy, you have to look at things and vaccination rates. that kind of information of the vaccination rates, is it going the way it's supposed to? >> we have experts now. i would tell you, a year ago, we had to learn it. this was, by far, the most important economic policy in this entire event. medical policy. the treatment of the disease and the success of measures to the spread and the vaccination.

as with the most important driver of the economy. of course all through with lots of experts. we have developed over the course of the year. we monitor that carefully, of course. daivd: let's talk about the president stimulus bill, $1.9 trillion stimulus bill. at the time it was proposed, larry summers, a former secretary of the treasury, said he thought it might be to bid -- too big. somewhat inflationary. the gap is roughly $500 billion, 1.9 trillion. you will, i believe, support the legislation. it was appropriate for the economy. do you have any concern that we will be producing inflation as a result of the stimulus bill or other things that we were void about the economy because of the size of the stimulus bill? >> at the fed, we have specific jobs. we are a creature of statute.

very specific jobs. for monetary places, stable employment. we deal with payment systems and all that. one thing we do not do is give congress or the administration advice on fiscal policy. so i have never, and we don't traditionally take a position in favor or oppose to legislation. we did not do that for the jobs act or any of these acts, that is just not something we do. we have a narrow mandate and precious independence. so, we try to stay in our lane and not comment on things that congress might do on fiscal policy. daivd: are you worried about debt and deficits? the debt is pretty high, $7 trillion or so. in the annual deficit is now two and half to 3 trillion or so. in the concern for the fed in terms of impacting inflation? >> yes.

over time and in the longer run, the u.s. federal budget is on an unsustainable path. meaning simply the debt is growing faster than the economy. that is my definition of unsustainable over time. it's a different thing to say that the current level of the debt is unsustainable. it is not. the current level is a sustainable and there is no question of our ability to service an issue that debt for the foreseeable future. i would also say though, as a nation, we will have to eventually get back to a sustainable path. that is something best done in good times, when the economy is at full employment and taxes are rolling in. this is not the time to prioritize that concern. haidi: fed chair jay powell speaking with david rubenstein. u.s. stocks retreated overnight after climbing to an all-time high. treasury yields continuing to hot -- continue to rise.

we see the downside of the dollar in the overnight session. the fed will likely take considering raising rates, according to what we just heard from jay powell. but for to the outlook for corporate debt with kelly, great to have you with us. i want to get your reaction on the communication of the rate hike, specifically the fed's plans. does that change your view of whether the 10 year ends up? >> our base case here is to see that 10 year treasury move up to two to a half percent over the next year. assuming vaccinations continue to rollout. and we continue to see the support of central banks. not surprising to hear fed chair powell's messaging today that he seems to be in no rush to change the rate outlook. but purchases could be tapered before that point in time. we are not overly concerned

about rates going higher. at least spending a lot of time in high yield specifically, it is important to keep track of the broader macro factors. this asset class is a short duration, about three and half years or so. so, as that rate picture changes, it is less impactful to our asset class and others, closer to eight years in duration. haidi: tell us about the opportunities you continue to see in high yield? what are you seeing across that space that is compelling? >> we did start tilting portfolios more into procyclical names. coming out of the downturn there. and on the defensive side. we also really liked smaller tap and eoc craddick stories the generate portfolios, some other areas we spent a lot of time and include senior secured bonds,

space we really like. a segment of the market where issuers cap that last year, just to gain access to liquidity. those kinds of bonds come with similar yield to the broader market. given collateral on the underlying issuers. bonds generate 7% type returns over the past decade. outside of that, we saw a lot of fallen angel activity in 2020. we expect issuers to be able to migrate into investment grades as the picture has improved so much. shery: which is the credit quality look like right now given that you have more fallen angels as well >> that's right. the record about a fallen angels which took out some of the weaker issuers in our space. that has improved the high-end credit quality to levels we have

not seen before. 55%. global high yield, we really like that segment of the market. we going to all segments of the markets to have best ideas. we utilized our analyst team to mine entire index for best idea generating opportunities for us. it is a high-quality, high yield market. even a little difficult to prepare relative to 10, 20 years ago. shery: you have seen with low yields a record number of issuances. a chart on the bloomberg showing how sales and high-yield bonds have been the highest in at least a decade. how much more room does this have to run, especially if you do have rising yields. could we see a higher uptick? >> it's a good question.

there has been a robust supply keeping focused on the primary markets. i think we are seeing around the order books, it speaks to how much demand there is for the asset class. you will get initial price talks come out on a deal, it tightens down very substantially. multiply -- multiple times over on the day, it ends up trading well. there are portions of the market we have to pay attention to and like at this time because, generally trading well, investors get behind it, meanwhile the secondary has been listless as we are focused on the amount of new names coming to the market. but, i would say, the vast majority of deals have been refinancing, not a lot of new added risk coming into the market. the issue is maturity helping the overall credit picture. shery: kelly, great having your insights. you can also turn to your

bloomberg for more on fed chair jay powell's marks earlier. this is bloomberg. ♪

haidi: australia's labor market recovery is expected to show continued strength with unemployment numbers expected to him march in a little over two hours time. paul allen has more detail about what we are watching. one that was withdrawn at the end of the survey. >> we will see the effects this time but it is a foreboding message, there was and i 3 billion-dollar program.

they're going to fund out -- they're going to find out, the unemployment rates easing to 7% from 520%. bloomberg analysis has that number even healthier at 5.6%. there is no doubt the unemployment rate has peaked. still lots of spare capacity in the labor market. there is encouraging data from the jobs website, they saw the highest number of job ads posted and 23 years. there is encouraging signs of the jobs market can survive the withdrawal of the subsidy program. shery: and yet, to what degree is australia's recovery jeopardized by the slow rollout of other nations? paul: that is something we have been talking about for a couple of days now. we had a chilling warning from

the u.s. chief medical officer, dr. anthony fauci. he gave an address this week to us trillion audience and praised australia for controlling the spread. there is no community transmission and all in australia at the moment. but in terms of the vaccine, just 1.3 million doses administered so far. the target to getting that job finished has been abandoned. the u.s., on the other hand, has fully vaccinated 75 million people. administering up to 4 million doses a day. dr. fauci saying no country is going to be back to normal until the overwhelming majority of the world population has been vaccinated because of the dynamic of virus spreading somewhere, there is always going to be a threat of variants making a comeback. australia is a long way behind in terms of vaccinations right now. shery: paul allen in sydney. here is a check of the latest headlines. they will file an ipo for the

second quarter. tiktok owner decided against listing in the u.s., due in part to the increased risk associated with concept stocks. the report says there are concerns that having fatal shareholders may have difficulties with u.s. regulators amid high retention. cbc capital partners in bain capital are joining forces to buyout toshiba. the nikkei reports that the cdc will submit a revised proposal. the private equity firm kkr and candace brookfield asset management are also sent to consider a bid for the japanese conglomerate. facebook faces a former probe by the main privacy regulator in the european union following the leaks. personal data more than half a billion of its users. the probe will determine whether the company has complied with

the eu's privacy mandate. don't miss our interview with the chief security officer coming up in the next hour. we will discuss the impact of the global shift shortage. this is bloomberg. ♪

haidi: women update on the resumption of the domestic and international capacity. domestic capacity increasing beyond prior estimates. yesterday, he had expected that in the current quarter, domestic capacity would rise to about 80%. also saying they are expecting to reach 90% of pre-covid when it comes to the fourth quarter. targeting resumption of the rest of the international net worth from late october, saying there is flexibility to bring forward or to push back.

that october is a question, given the lack of cases we have seen with the vaccination role and australia. not just the october target but also the end of the year. no vaccination target inside the first round of jobs for all its trillions. we also hearing updates when it comes to the reopening of premium lounges in capital cities. they are still planning that international resumption in late october. we know after getting the new zealand travel bubble underway, they want to continue these talks with the likes of japan and korea having travel corridors. signing up for a domestic, they lost 11 -- 7 billion australian dollars at the start of the pandemic. but they are focusing on cash positive flying over profit margins. we are getting that update now from.

let's get you to the first word news with vonnie quinn. vonnie: pfizer and biontech will raise the covid-19 vaccine faries -- covid-19 vaccine deliveries to the european union by 19%. the additional 15 million doses will have two what they were expecting from pfizer. this happens -- this comes after johnson & johnson shop was closed in the u.s. and its delivery delayed to the eu. >> we might need them to reinforce and prolong immunity. and if a variants occurs, we will need enough vaccines and we will need them early in sufficient quantity. we are now entering into a negotiation with biontech pfizer for a third contract. this will foresee the delivery of 1.8 billion additional doses

of vaccine. over a. of 20 -- over a period of 2022 and 2023. vonnie: u.s. by chase have testified before lawmakers with first time in more than two years. intelligence heads labeled unparalleled priority for the intelligence community. russian hacking and i withdraw from afghanistan were also areas of concern. >> we have, now, over 2000 investigations in the chinese government. and, on the economic espionage investigation side alone it was about a 1300% increase over the last several years. we are opening a new investigation to china every 10 hours and i can assure it is not because our folks don't have anything to do with it. vonnie: and of global climate talks next week, japan joining

the u.s. and calling on china to accelerate efforts to curb greenhouse gas emissions. the environment minister tells bloomberg air pollution controls directly impact the health of japan's residence and urged beijing to move ahead of its 2060 carbon neutral pledge. 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: let's get morning calls ahead of the asia trading day. the dollar and pound regaining ground after corrective actions this month. key funding currency such as the euro. the news of the departure of the chief economist is now fully processed. shery: i am also looking ahead

at fixed income and how they will be affected by the selloff in bonds. for now, it seems limited on the impact. given that coming from beijing. jane holdings in debt by a chinese state owned enterprise, saying bigger story for other parts of the em space remains global vaccination and economic growth prospects. let's turn to coinbase, it finally went public on wednesday through a highly anticipated direct listing. they look for a $100 billion of valuation. it was the biggest direct listing ever but it closed today at 320 eight dollars. during not to discuss is our team editor. how does the slump bowed for not only coinbase but other crypto stocks? >> this is not too much of a

surprise. there was so much anticipation about coinbase getting in there was both in crypto and crypto stock, they had really increased in the past few days. coming off, is not too much of a surprise. it is one of the first ones coming into the market. haidi: what are the implications for other companies that might be considering going public as well? >> it looks like it would be a good time to do that. crypto is way up. the debut, even as it came off the end, still a pretty decent valuation especially given other financial companies exchanges. it's got to give some encouragement to other companies looking to do this. shery: there is a bloomberg

opinion he is saying that everyone is a crypto investor now with coinbase. given that it is already profitable, it is also eligible to make it to the s&p 500 index. what is it say about this asset class becoming so main street? >> it's gaining acceptance. people are coming more comfortable. it's coming into society, people having more applications, started to get things more useful. it is developing a maturing overall. it is one small part of this arc of development in crypto. haidi: coming up, we go through the big bank earnings. this is bloomberg. ♪

haidi: wells fargo investors finally have something to cheer about. profits soared sevenfold in first-quarter earnings. it's a sign that a massive overhaul of corporations from a scandal riddled bank may finally be taking hold.

the financial officer told bloomberg he expects a strong performance to continue. >> as it relates to the quarter, you saw three or four things driving the results. the economic trends are continuing to improve. you saw a number of the be lines, whether it be the home lending business being up, investing -- investment banking business, while business driven by market levels. all those variables are up. as you think about the performance. you're also seeing a strong credit performance. both on the consumer side of the corporate side. part of that is driven by the accommodation programs but also by tremendous amount of government stimulus that has been injected over the last year. that has provided a bridge for consumers as they sort of work through all of the issues

related to the pandemic. we have also been trying to do a lot of work with our small business clients. donating over $4 million -- over $400 million directly to small businesses. that has been an important piece as well. you've also seen, offsetting that, lower interest rates impacting. that is what is driving the results for the quarter. romaine: let's go back to the consumer for a second, this is a big part of the business at wells fargo. singling out as an area of growth for the company. given the right picture, the fiscal stimulus and a lot of other macroeconomic, there are a lot of people out there that frankly either are not borrowing or don't need to borrow or, for whatever reason, just keep the credit cards in their wallets. how do you navigate an environment where people just don't need to borrow? >> the consumer is in a strong position, that's a good thing

for the overall country in the economy. the liquidity and strong, they have more money, then they did pre-pandemic. that's impacting the short run. you are seeing prepayment levels of the credit card business that are high. you are seeing less need to borrow money both on the consumer side and the corporate side. as the economy starts to gain more momentum, and you start to see more normality, people get out there more, you're going to see more demand in an environment like that. taylor: what does that mean then? not only for the credit standards from the retail sector but within the otherwise commercial sector itself? >> i think the credit standards are similar over a longer. of time -- over a longer period of time. people are not reaching for de-risk.

the consumer starts in a good place, that should provide a good foundation for them to continue to grow their business. when the consumer is doing well, so are we. we do well when our clients are doing well. i think the environment that we all expect to come through the second half of the year in particular should be constructed as we think about demand over time. shery: the wells fargo cfo speaking to taylor riggs and romaine bostick. as well fargo bought -- as wells fargo profits go down, goldman sachs was lifted lab a lot of trading deals. the ceo offers a heavy outlook on conditions of the coming month, our next guest says big banks could be in trouble by year end. chris whalen joins us now. great to have you with us. we saw a huge revenue windfall from trading, dealmaking, and seed like a goldilocks moment. so why are you worried? >> investment banking was great

for both goldman and jp morgan. that is what you would expect in this environment. the difficulty is, use chuckle jp morgan's earnings were reserves they had put aside last year they released. so, if you take that out, or at least normalize it, the quarter was flat. and might have even been down slightly. jp morgan expenses rose more than revenues, so if you take that for a half billion dollars out of earnings, take a look at it, that could be the run rate for the year. they could probably release more reserves in the second quarter but i -- but my guess is the fed and other regulators will make them hold onto the other $10 million that jp morgan put aside last year, simply because there is a lot of forbearance of commercial borrowers right now. member that word years ago was a bad word. and then investment banking, i

think is still going to be strong through this year. rates are going up and down, it doesn't matter. you have a lot of deals being done in equity markets, that is good. the banking sector is under horrible pressure from the fed. the fed is pushing down the cost of funds, they are also pushing down return on earning assets. and that is how banks live and die. if they continue all year as the fed has indicated, banks are going to be under a lot of pressure for the fourth quarter in terms of basic profitability. shery: but the expectation is not the fed will hold low forever, right? in the meantime, capital markets actually offset some of those losses, like they are doing right now, it is hard to feel bad about these banks. >> if you are goldman sachs and your business's capital markets, yes. we jp morgan, half of the bank's capital markets and asset management and the other half is bank. if that half is not making

money, or it is struggling, that is going to affect the whole enterprise. i'll give you another example, wells fargo, has finally come out with its doldrums and had a good quarter. this used to be the best-performing large bank in the u.s.. of the top four. so, it's wonderful news. but again, if you look at revenues, they are flat. there is no loan demand as you were just talking about in that segment before. so, banks are facing a difficult environment where there is slack demand, they are fighting for large assets, competing with funds, all sorts of other players because these are big banks. they don't care about alone and thus it is billions of dollars. they are seeing prepayment. as the previous guest was talking about with credit cards. they are seeing prepayments in commercial loans. so that means they have to go out and find a new loan. it is a competitive environment for big banks. i like smaller banks in the large bank group because they

have more pricing power. big banks have to give up so much to get alone today, the loan is often not even profitable. you are seeing some banks cross their armpits and say they're not going to bother, those trillions of dollars that the fed has put into the u.s. banking system, they can't really use for much. they can't fund the mortgage or commercial loan with it that short-term money. you are not seeing the credit creation that the fed would normally expect with a low rate environment. that is breaking the narrative in terms of growth. so, i worry about that because banks need to make loans, that is how they make money. bottom line. haidi: do we see a relaxation when it comes to lending standards going forward to try start that demand? it's a thing where you feel bad for banks because it looks like consumers have their financial houses in order, and they don't need these loans.

>> they given technical terms. would you talk about the bond market, you talk about duration. the fed has been taking assets out of the market. they are buying the mortgage backed securities. they are buying trillions of dollars worth of short-term treasuries. investors are forced to go elsewhere. that competition for assets, the remaining duration in the market is intense. so, it's not a matter of feeling sorry for the banks. it's more of a matter of we need to understand that as long as the fed is wedded to the dual mandate, they will do anything they have to do to get to full employment, even if it needs badly damaging the bond market. in the u.s. banking system, and all of the investors out there. all of the pension funds. everybody depends on earnings and assets is at risk in this environment. ultimately, the fed, regardless of inflation, with the bells start ringing loudly enough in

washington, they don't have to change policy. haidi: always good to have you with us. we will have more when it comes to the outlook of the banking sector. this is bloomberg. ♪

haidi: japan is echoing calls from the u.s. to for china to reduce greenhouse gas emissions and of global climate talks later this month. japan has pledged a net zero goal by 2050. the environment minister spoke at the bloomberg any a summit about the changes the countries making. >> the government is also moving fast. we recently submitted a bill to amend the climate change law. this will grant a legal basis of political continuity to the climate course. >> renewable energy generation has been growing since 2012 in japan.

so how much would japan want to revise up to achieve net zero and the upcoming policy? >> japan's renewable energy supply has the potential to be doubled. in order to fully realize this potential, we have promoted the introduction of energy in the bill, to amend the climate change law. going forward, the environment will encourage renewable energy to meet the public demand for it. >> at the expense of nuclear generation after the fukushima accident, the comes to more than 70% of generation mix. how would japan rely on fop -- produced its reliance on fossil fuels? >> about 85% of japan's greenhouse gas emissions come from the energy.

we need to get the policy right to support the climate action. we are reviewing how to reduce reliance on fossil fuels. we selected in the upcoming study the energy plan. it will be consistent with carbon neutral. >> it's amazing to see the net zero commitment from the local government and, you also mentioned having to sit in on that zero, also announcing a net zero target. how will this impact the overall omission reduction efforts in japan? >> now, we have to turn these commitments into reality. to support that, we have to secure the budget and encourage decarbonization missions. unduly reestablish counsel for national and local, administers governors and the mayors coming together.

this is a roadmap to decarbonization. we are providing a number of soft incentives, a decolonization effect. >> japan, korea and china have all pledged that zero. will you work with china and south korea? and how will you meet the discussions in asia? >> we have a framework among japan, china and korea. this is been held every year since 1999. except for last year because of covid. so, we are in close contact. we are calling on china to move ahead of its 2060 carbon neutral pledge. under responsible power. it is important for democratic countries to have one voice to

encourage china. japan will make use of our framework. shery: the japanese environmental minister speaking exclusively. here is a quick check of the latest business flash headlines. coinbase sword above $112 billion valuation and its nasdaq trading debut before following back -- falling back to below its opening price. it was down 14% from its $381 open. while off its $429 session high. bitcoin, along with a theory of, made up 60% of coinbase and 2020's trading revenue. it also dipped after hitting another record just shy of $65,000. hedge fund managers in a jar joining the spac boom and searching for the next grab of asia's most valuable startup.

they pumped hundreds of millions of dollars, from plastic recycling to renewable energy storage in the past few months. that as u.s. regulators clamp down, warning specs are not the way around securities. amazon has outlined a set of hiring and promotion targets for women and black employees in the senior ranks. this includes arise this year, as well as doubling the number of high-level black employees in the u.s.. these commitments are unusual for the company. coming up in the next hour, don't miss our interview with the chief security officer, we will discuss the impact of the global chip shortage and the latest developments in the case. this is bloomberg. ♪

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that means better results in less time. and there are over 20 exercises to choose from. get gym results at home. no expensive machines, no expensive memberships. go to aerotrainer.com to get yours now. haidi: good morning. we are counting down to asia's major market open. shery: welcome to daybreak asia. our top stories this hour, jay powell lays out his exit strategy. he says the fed is likely to taper bond buying before any decision to raise rates. jp morgan and goldman