haidi: very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: i am shery ahn in new york. welcome to "daybreak australia." derek chauvin is found guilty of murdering george floyd. mechanical leaders are welcoming the verdict in the killing that ignited a racial reckoning in the u.s. president biden is expected to

speak soon. tokyo could see its third state of emergency. the governor -- to act on a new surge of infections. asian stocks set to track a second day of wall street declines as rising virus cases overshadow solid corporate results. plans for a super league are crumbling after all six -- fall out. haidi: lots of news flow today. let's take a look at how we are setting up for asian markets. what have you seen? sophie: s&p e-minis lower. you have india and vietnam sitting out this session. india reported over 200 thousand new daily cases over the past six days, leading the resurgence in virus infections in asia which will likely test the resilience of service sectors in the region. this wednesday, we will get a pulse check.

you have the aussie dollar holding losses below 78. we will also get korean flash trade figures. in japan, at the stock close at a four-week bow on tuesday, futures holding losses as we anticipate tokyo and osaka entering a state of emergency. pulling up the chart on the terminal for a bigger picture look at the nikkei 225, the index is set to test the bottom of its recent range after falling to its 75 day moving average for a second time since october. the dip below 29,000 is a good time to buy considering that you have a strong earnings outlook in japan. chary. shery: former -- shery. shery: derek chauvin has been found guilty on all charges. he kneeled on floyd's neck for more than nine minutes. our reporter is on the ground in minneapolis. we have seen concerns about

protests. more than 3000 national guard troops have been activated. what is the situation right now? >> -- shery: again, do you hear us? right. we are waiting to hear from her on the ground from minneapolis as we have protesters or people right now in fact just gathered across minneapolis after that verdict on former police officer derek chauvin. he was found guilty of killing george floyd on all three counts. second and third-degree murder and manslaughter. we will get back to our reporter on the ground as soon as we can, but for now, let's turn to vonnie quinn with the first word headlines. vonnie: in other news, tokyo governor -- says she will ask

the government to declare a state of emergency as soon as possible to curb a surge in covid-19 cases. infections in the city jumped to levels not seen since the second state of emergency in january. prime minister yorkie tsuda set up restrictions in regions to try and slow the spread ahead of the summer olympics. prime minister narendra modi is urging states to avoid lockdowns to avoid another hit to india's struggling economy. surging infections have forced the shutdown of delhi and mumbai, with an exodus of migrant workers. modi says states should only lockdown as a last resort. india has the world's fastest number of covid-19 cases with more than 250,000 new infections and devon teen hundred deaths reported tuesday. u.k. prime minister boris johnson says britain must be ready for another wave of coronavirus infections later this year. he insisted plans for reopening the economy are still on track.

the comments came as he launched a new program to limit the covert strains. he says u.k. cases are steadily falling but it's wrong to think they have gone away. >> the scientific opinion in this country is to view that there will be a another wave of covid at -- be another wave of covid at some stage this year so we must as far as possible learn to live with these diseases as we live with other diseases. vonnie: johnson & johnson will resume shipments of its covid vaccine to the european union after the drug regulator said the benefits outweigh the risks of a possible link to rare blood clots. governments can make their own decisions on restricting use to certain patient groups. that assessment echoed the review of astrazeneca vaccine. 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. shery: let's get back to minneapolis. our bloomberg reporter, fola akinnibi, is on the ground. what are you seeing now? we got concerns about potential protests ahead of the verdict. what is the situation now? fola: i am here in george floyd square. >> black lives matter! fola: we were here last year and, you know, it's a jubilant atmosphere. people are celebrating. people are hugging, crying. they have been chanting. there have been speech going on people are -- going on, and people are happy. we have not seen any sort of unrest here at least and there is a minimal police presence in the square. shery: -- haidi: you can hear the relief, to some extent,

jubilation and celebration, but at the end of the day, is this -- of course a celebration, because this should be the baseline, that some sort of justice was served for something that never should have happened in the first place. what is the next step in terms of pushing this forward to ensure that police violence and this kind of institutionalized racism does not keep happening? because we have seen, you know, young black men killed even in just the last couple of ex-d while this trial was ongoing. -- last couple of weeks while this trial was ongoing. i just want to check that you still have us. fola: i'm sorry. i did not catch that. i'm trying to get away. i'm sorry. haidi: it's all right. we can hear that there's a lot going on where you are, and rightfully so. i just wanted to say, what is

the next step in terms of pushing, you know, pushing this forward? yes, there is a perception that justice in some definition has been served, but what are the legislative, political factors that need to be in play here to stop this from happening again? fola: of course. one of the things we heard from -- you know -- there have to be changes. haidi: we will interrupt you. shery: we are hearing from vice president kamala harris. let's listen in. vp harris: today, we feel a sigh of relief. we cannot take away the pain. a measure of justice isn't the same as equal justice. this verdict brings us a step closer. and the fact is, we still have work to do.

we still must reform the system. last summer, together with senator cory booker and representative karen bass, i introduced the george floyd justice in policing act act. this bill would hold law enforcement accountable and help build trust between law enforcement and our community. this bill is part of george floyd's legacy. the president and i will continue to urge the senate to pass this legislation, not as a panacea for every problem, but as a start. this work is long overdue. america has a long history of systemic racism. black americans and black men in particular have been treated throughout the course of our history as less than human. black men are fathers and

brothers and sons and uncles and grandfathers and friends. -- friends and neighbors. their lives must be valued in our education system and our health care system. in our housing system. in our economic system. in our criminal justice system. in our nation. full stop. because of smartphones, so many americans have now seen the racial injustice that black americans have known for generations. the racial injustice that we have fought for generations, that my parents protested in the 1960's. that millions of us, americans of every race, protested last summer. here is the truth about racial injustice. it is not just a black american

problem or a people of color problem. it is a problem for every american. it is keeping us from fulfilling the promise of liberty and justice for all. and it is holding our nation back from realizing our full potential. we are all a part of george floyd's legacy. and our job now is to honor it and honor him. thank you. and now, it is my great honor to introduce the president of the united states, joe biden.

pres. biden: today, the jury of minnesota found former minneapolis police officer derek chauvin guilty on all counts in the murder of george floyd last may. it was a murder in full light of day and it ripped the blinders off for the whole world to see the systemic racism the vice president just referred to, the systemic racism which is a stain on our nations sole. -- nation's soul. the profound fear and trauma, the pain, exhaustion, that black and brown americans experience every single day. the murder of george floyd launched a summer of protest. we had not seen that since the

civil rights era in the 1960's, protests that unified people in every race, generation, with peace and with purpose, to say enough. enough. enough of this senseless killing. today, today's verdict is a step forward. i just spoke to the governor of minnesota to thank the close work of his team and i also spoke with george floyd's family again. remarkable family, extraordinary courage. nothing can ever bring their brother, their father back, but this could be a giant step forward in the march towards justice in america. let's also be clear, such a verdict is also much too rare. for so many people, it seems

like it took a unique and extraordinary convergence of factors. a brave young woman with a smart phone camera, a cloud that was traumatized, traumatized witnesses -- a cloud that was trauma -- crowd that was traumatized, a murder in broad daylight for all the world to see, officers standing up and testifying against a fellow officer instead of just closing ranks, which should be amended. the jury who heard the evidence carried out their civic duty in the midst of an extraordinary moment under extraordinary pressure. for so many, feels like it took all of that for the judicial system to deliver a just -- just

basic accountability. we saw how traumatic and exhausting just watching the trial was for so many. think about it, those of you who are listening. you are not there. you did not know any of the people, but it was difficult. especially for the witnesses who wanted to relive that day. it's a trauma. on top of the fears of so many people of color live with every day when they go to sleep at night and pray for the safety of themselves and their loved ones. again, as we saw in this trial, from the fellow police who testified, most men and women who wear the badge serve their communities honorably, but those few who failed to meet that standard must be held accountable and they were today. one was. no one should be above the law.

and today's verdict sends that message, but it's not enough. we cannot stop here. in order to deliver real change and reform, we can and we must do more to reduce the likelihood that tragedies like this will ever happen to occur again. to ensure that black and brown people or anyone, so they don't fear interactions with law enforcement, that they don't have to wake up knowing that they can lose their life in the course of just living their life. they don't have to worry about whether their sons or daughters will come home after a grocery store run, just walking down the street or driving their car, playing in the park, or just sleeping at home. this takes acknowledging and confronting head on systemic racism and the racial disparities that exist in policing and in our criminal justice system more broadly.

state and local government and law enforcement needs to step up but so does the federal government. that's why i have appointed the leadership of the justice department i have. it was fully committed to restoring trust between law enforcement and the community they are sworn to serve and protect. i have complete confidence in the attorney general, general garland's leadership and commitment. i also nominated two key justice department nominees, related group to an -- renita duped up -- renita gupta and kristin clark, who fight to advance racial equity and justice. renita and kristin have the experience and the skill necessary to advance our administration's priorities to root out unconstitutional policing and reform our criminal justice system and they deserve

to be confirmed. we also need congress to act. george floyd was murdered almost a year ago. there is meaningful police reform legislation in his name. she helped write it. legislation to tackle a misconduct in police departments , to restore trust between law enforcement and the people they are entrusted to serve and protect. it should not take a whole year to get this done. my conversations with the floyd family, i spoke with them again today. i assured them we will continue to fight for passing the actor so i can sign into law as poorly as possible. there is more to do. finally, if the work we do every day to change hearts and minds as well as laws and policies.

matt is the work we need to do. only then will for justice and equality would be delivered to americans. guilty verdict does not bring back george. but to the families paying -- they are finding purpose of george's legacy will not be just about his deathbed about what we must do in his memory. i also spoke to gianna, george's young daughter. i met her last year. i told her how brave i thought she was. i melted down and held her hand and said, "daddy is looking down on you. he is so proud." she said "daddy changed the world." i told her this afternoon, "daddy did change the world."

let that be his legacy, a legacy of peace, nonviolence, and justice. peaceful expression of that legacy. violent protest is not appropriate. there are those who will seek to exploit the raw emotions of the moment, agitators and extremists who have no interest in social justice, who seek to carry out violence, destroyed property, and fan the flames of hate and division, do everything in their power to stop this country's march towards racial justice. we cannot let them succeed. this is a time for this country to come together, to unite as americans. we can never be any safe harbor for hate in america. the battle for the soul of this nation has been constant push

and pull for more than 240 years. the tug-of-war between the american ideal, that we are all created equal, and the harsh reality that racism has long torn us apart, at our best, the american ideal wins out so we cannot meet this moment and look away thinking our work is done. we have to look at it -- we have to look at it as we did through those nine minutes and 29 seconds. we have to listen. i cannot breathe. i cannot breathe. those were george floyd's last words. can't let those words die with him. have to keep hearing those words . we cannot turn away. we have a chance to begin to change the trajectory in this

country. my hope and prayer, that we live up to the legacy. may god bless you. may god bless george floyd and his family. thank you for taking the time to be here. this can be a moment of significant change. thank you. haidi: president joe biden and vice president kamala harris. they are commenting on the verdict. we have seen dramatic scenes out of minneapolis as we see that verdict being delivered. we have some sense of closure for the family and the friends of george floyd. let's get over to david westin, who joins us now. what is your reaction to some of the remarks we heard from president biden and, in

particular, we heard of course first from the vice president. david: obviously, he is trying to mend the nation, trying to move us forward. he said three things of great importance. it's all too rare that we have this accountability. this is a great thing that we are holding this police officer accountable but it is all too rare even how common this sort of experience is. number two, he relied on his justice department, saying he's counting on them to have fundamental reform incremental justice. of course he talked about the george floyd justice in policing act and noted that kamala harris , his vice president, was one of the authors of that, and said we need that done right away. in the end, he said it's not enough to do it by law and regulation. we have to change hearts and minds. there's no safe harbor in this country for hate. he particularly called out agitators who would engage in violence on either side and said they are not really for racial justice. shery: when it comes to the george floyd act, in a split

senate, what are the chances it will get done? david: that is exactly the right question. it has already been passed in the house of representatives. it will be an awful tough thing to get down in the senate. that probably will require 60 votes to get past the filibuster. the question that i have in my my mind -- in my mind, does this verdict, and what has happened today and tonight, does it change that calculus at all? does it make it more difficult for some senators to stand up and say we are not going to impose these sorts of restrictions on police? and do they have to amend the act to get it through? there will be a lot on capitol hill now. haidi: does this verdict change the political calculus and positioning? are there members of the political elites and people who are in power who believe this was not the right verdict? david: well, i would not want to speak for all members of political elite at all.

i think it's awfully hard to watch that video and to watch it again and again and think that this was conceivably justified in any reasonable world, with all those people standing around, and a video being shot for 9.5 minutes. it's awfully difficult. i am not seeing people who are standing up on capitol hill saying, what mr. show bended was justifiable at -- mr. chauvin did was justifiable at all. he said let's not defund the police. president biden was not saying defund the police. he said the majority are serving their community well but we have to hold the few that are not accountable and that is the challenge and that is part of what the george floyd justice in policing act portends to do, what they want it to do. shery: as we speak, we are looking at pictures of minneapolis p had people i gathered there. this coming on the -- minneapolis. people are gathered there. national guard troops were activated because of concerns

about protests. president biden urging peace following the verdict. what are you expecting in terms of the black lives matter movement? david: that is an interesting question, what happens next. what president biden is trying to say is take all of that energy, if you want to be constructive about it, and direct it towards really getting legislation through congress and getting reforms through the justice apartment. i would not be surprised if merrick garland started really taking a hard look at some individual police departments around the country and may be bringing some civil rights actions if appropriate because often, what happens, is they get a consent decree and they can have real supervisory authority over police departments so i would expect some actors in that direction. what president biden wants is to direct it that way rather than demonstrations. haidi: what about expectations from the corporate sector? many of our guests have said we all have a response ability to take action that is right and just. does this push the movement for companies and firms even more?

david: such a great question. again, i'm sorry. i don't know the answer to it but i think we should ask ourselves that question. i talked to various ceo's, people who are influential in the corporate world, who say when it came to the georgia voting rights act, that it's a special case because that goes to democracy, how we vote. is it limited to that? do you have the coca-cola of this world, the prominent companies who say there is voting but also this racial justice in policing. i don't know whether the ceo's and shareholders will be inclined to go over to that or not. that is an important question to keep our eye on going forward. shery: david westin, always great having you on, the anchor with his views on what is happening in minneapolis. we continue to look at live pictures. we see people on the streets after that verdict from the jury on former police officer derek chauvin. he was found guilty of killing george floyd when he knelt on

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shery: americans taking to the streets in minneapolis. concerns of violence and unrest but after the verdict, a former police officer, derek chauvin, being found guilty of killing george floyd. the gathering has been largely peaceful. we continue to see people on the streets, some of them celebrating the occasion as the verdict from the jury found derek chauvin guilty of all counts, second and third degree murder and manslaughter. our next guest's research focuses on racial inequality and

particularly, police and civilian relations. thank you very much for joining us today. give us your reaction to the verdict and what we are seeing on the streets right now. >> thank you for having me on. i think what we saw on the outcome of the derek chauvin trial is what should have happened. it's almost like seeing a ball going to the net and you are wondering if it will show up on the scoreboard. it was the correct outcome. he was charged with three counts, two murder counts, and an additional charge, guilty on all three. what i want people to recognize is that this case is an exemplar and outlier. it is not the norm. overwhelmingly, police officers are never charged for a killing, and even more rare are they actually convicted. there's been less than 10 of the thousands that have happened over the past several years in

the united states when it comes to police killings where an officer was actually convicted. and again, over 1000 people in the united states are killed by police every year, including daunte wright, who was killed right down the street from where george floyd was killed and where derek chauvin was standing trial, so as much as we are relishing -- as much as we are relishing this particular outcome, i think that people are now focused on policy change that needs to happen in washington, d.c. as well as in our state legislatures. shery: president biden acknowledged that, saying this sort of verdict is much too rare and he also emphasized the fact that it should not have taken a whole year to get this done. how much progress are we seeing nonpolice reform right now? rashawn: actually, i think we are seeing quite a bit nonpolice reform.

talking about police reform and using that terminology is not enough anymore. it's clear we have tried to do reform. the needle has not moved a lot. police killings have actually increased. the big thing at the federal level is the george floyd justice in policing act passed the house of representatives. what is needed is for that legislation to pass the senate. democrats will have to figure out what they want to do with the filibuster, if they want to bust that up or not and if they want kamala harris to break the tie. that legislation does a few important things to note. not only is it the most transformative piece of legislation, the main thing it does is it repeals qualified immunity. qualified immunity is core doctrine that -- court doctrine that alleviates law-enforcement and other government officials from an facing -- from facing

any financial responsibility for their actions so that $25 million that is going to george floyd's family, their money is not coming out of the police department budget, it is not coming out of children -- sheldon -- derek chauvin's pension. it is coming from taxpayers. over the past five years, in the major 20 metro areas, over $2 billion in civil set of months -- civil settlements have been paid out. it will also create national databases for bad apples like derek chauvin so when he gets out of jail, he cannot work anymore. they cannot go to another department to do something else. thirdly, create a real use of force database that can be examined to not only determine when officers are more likely to use force but also when things are most likely to happen to them, when -- and that research, that data, will be extremely useful moving forward.

>> we talked about bad apples had last time i spoke to you, you said the problem was they grow from rotten trees. the structural changes seem have spoken through, what about the cultural changes? what about the deficit of trust that seems to divide a lot of white folk from black folk that caused this escalation where we don't anticipate such an escalation to happen with an encounter from the police? rashawn: great question. dr. johnson, a professor at johns hopkins in baltimore, he said he is unsure if culture is reform a ball -- reformable. that is something we have to grapple with. we have to recognize that the structural issues we are talking about produce a culture that produces a lack of external accountability for police officers and the communities

they serve so these bad apples come from rotten trees as i talked about. but good apples are part of that tree and start to become poisoned and those particular apples either end up engaging in a misconduct incident such as with daunte wright, if that officer said she did not purposefully do that, but she has been trained to pull her gun in high stress situations and has not been trained to de-escalate situations. but also, those good apples get pushed out. i know so many officers who are amazing police officers who are pushed out because they have aimed to crack the blue wall of silence because there are real consequences for doing so. structure and culture are intricately linked in ways in law enforcement that make it problematic to change things. i am always cautiously optimistic that these things can happen. i think this outcome is what was

supposed to happen. what people now need to focus on is sentencing and also these other cases, not just the tip of the iceberg, not just the low hanging fruit of police killings, but also the many incidents of use of force that lead to changing people's lives in local communities. haidi: does defund the police, the movement, help in all this, if you are talking about a redirection of funding to education or social services instead? rashawn: yes, i think so. i mean, of course, defund the police is a slogan that looks great on a poster out of protest, and it has obviously had an impact. i have written about this. when we talk about defund the police, what it is really about is reallocating funding. it is different from abolishing the police, which means either people want law-enforcement to completely go away or they want to see police departments completely demolished and dismantled, to be built again in

a way that hopefully would change the culture of a police department. when it comes to reallocating funding, the research i have conducted suggests that real -- reallocating makes sense for a few reasons. first, when we look at use of force, over 90% of calls for service have nothing to do with violence at all. in other words, over nine out of 10 calls that officers go on lead to no type of violence at all. they are social interactions. yet they are trained for tactics and violence. there is a mismatch there. i think we should reallocate some of those because of service and this will help reduce the likelihood of use of force and also help keep officers safer in the interactions that they have. the other thing about that is it will allow law enforcement to focus on more violent crimes. in the united states, 40% of homicides go unsolved, 40%.

it's interesting because even though we are in this uptick of more violent types of crime -- other types of crime are down. nonetheless, we know that the homicide clearance rate, how much officers solve these crimes, is just too low and i think it's because officers are asked to do too many things. they are stretched too thin. they cannot properly investigate. their resources are not focused on that. finally, we are talking about reallocating, not talking about taking 50% of the budget. when we take a market-driven, evidence-based approach, we take a methodological approach, in some cities, it might mean taking 5% of the budget and moving it to social services. for others, it might be taking 10%. for some, they might be fairly balanced. just taking 1% to 2%. we have to start to merge the research community and the law enforcement committee better and that is how we start to heal the communities that all of us

are supposed to be serving and protecting. haidi: elucidating as always. great to have you with us, rashawn ray joining us out of washington. let's get you to vonnie quinn with the first word headlines. vonnie: in other news today, the european union's top diplomat says russia's military escalation at its border with ukraine has grown to more than 100,000 troops. the largest ever buildup on the frontier of both countries. he says that raises the possibility of further conflict. 2700 bloc is not preparing extra sanctions. the foreign ministry called russia's buildup alarming. >> this is a real escalation, and yes, i am deeply concerned with the potential consequences of that escalation for my country and this is why we call on friends and partners to stand by us, not only in words, but also in deeds. vonnie: iran's president, hassan

rouhani, said negotiations on reviving the nuclear deal are 70% complete and could be resolved quickly if the u.s. acts with honesty. world powers concluded the latest round of talks in vienna and are preparing to meet to focus on the steps needed to fully -- the accord which the u.s. abandoned in 2018. iran's lead negotiator said talks are on the right track but challenges remain. all six of the english premier league team is planning to join the european super league -- have withdrawn. the other five followed suit shortly after. plans for the super league were announced on sunday to widespread condemnation from the sports authorities, and others. 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. shery .♪ shery: let's turn to the markets

right now. we are seeing futures under pressure after u.s. stocks fell for a second day. we continue to see global infections accelerating. countries such as india setting new records for infections and deaths. nikkei futures down almost 2% as we have the japanese yen very close to that fixed week highs. kospi futures are gaining ground after the korean won that the gains in most emerging asian currencies on the back of a u.s. dollar in the previous session. sydney futures down. he restocks at the moment also losing ground. for more on the markets, that spring in the chief global market data just. good to have you with us. given this resurgence of coronavirus cases, what can we expect on the economic recovery and market -- a financial markets recovery across asia? >> thanks so much for having me.

it's very much a mixed bag. there are some countries that have done a fantastic job managing covid-19 and there are other countries like india where it is an incredibly concerning situation so what that means is that the economies that are managing covid-19 well are already participating in the recovery. they could have some setbacks in terms of having to impose localized markdowns. in general, what we are seeing is economies in recovery mode, for those countries that have been able to manage covid-19. the real risk is that we could see variants emerge from countries where covid-19 has not been controlled and that there could be one or more variants that are not protected against by existing vaccines so to me,

that is probably the greatest risk to the economic outlook but in the shorter term, the countries that have been able to manage covid-19 should be able to continue with their economic recovery. shery: that is quite a tricky judgment to make. at the beginning of the pandemic, we thought that japan was doing a good job and now we are seeing this resurgence in these economies but china seems to be holding the line. this gtv chart on the bloomberg showing how foreign investors have been buying a-shares. is this one of the reasons why we are seeing more interest in chinese equity markets? kristina: i do think so. china not only has been able to control covid-19 while but is certainly leading the world in terms of the economic recovery. i think that is clearly attracting investment interest.

haidi: what about china tech or asian tech more broadly? are there concerns from the regulatory side as to where the next growth momentum would come from? kristina: certainly, regulation remains a concern, whether it is china tech or u.s. tech, quite frankly, but the reality is, for those investors with a long time horizon, technology, innovation, looks very attractive. what we are likely to see as we emerge from the pandemic, our companies want to put more dollars towards capex and more of those dollars go towards technologies spent. we have in a number of economies elevated household savings levels so we could see an increase in personal spending on technology as well.

i think this is an exciting time for technology but we have to have a long enough time horizon because there could be short, namely regulations. haidi: when it comes to the revival, just the seemingly out of control spread of the virus in a lot of countries, even as the u.s. and other countries continue to make progress on vaccines, we are seeing the likes of brazil, the likes of india, and a number of other countries in asia really struggling to get a handle on it even when it comes japan. it terms of the global drag on growth and just the idea that, you know, until everyone is safe and vaccinated, the virus still remains a risk to both health and economic growth? kristina: that is certainly a concern. for the time being, what i think we will see is countries like the u.s., like china, continue to make progress, to see the

economic recovery flourish, but the reality is that if some countries cannot control the virus, there is the risk that many countries will have difficulty controlling the virus because variants emerge that cannot be controlled by vaccines. that to me is the worst case scenario. i think what is more likely is that we have seen an environment, especially for those countries, that are able to do an effective rollout of the vaccine, that they are then able to do effective rollouts of booster shots to those vaccines. presumably, we will continue to stay a step ahead of any variants that are emerging but that certainly is an "if" if not a big "if." that worst-case scenario is one in which countries like brazil and india are not controlling covid-19 and it enables these variants, these mutations to

flourish that are much more problematic and far more immune to the vaccines we currently have developed. and that's why on days like today -- shery: thank you for joining us. [laughter] shery: go ahead and finish. kristina: that's why -- that's why on days like today, we see stocks down when we see covid-19 numbers up. shery: great to have you with us, kristina hooper. we do have lots more to come on "daybreak australia." -- "daybreak asia." this is bloomberg. ♪

haidi: tokyo's governor says a state of emergency for the city is needed as soon as possible as virus cases surge again. the olympics are three months away. our reporter has the latest out of tokyo. this will be the third state of emergency in tokyo. what kinds of restrictions are we looking at? >> we already have some mild measures imposed in tokyo, which means bars and restaurants are supposed to close at 8:00 p.m., but the government discovered that this has not stopped people from going out and about. we have packed commuter trains, and obviously, cases are rising

again. we saw a number over the weekend, over 700, which was the worst in two months, so a new state of emergency may mean that some businesses are forced to close altogether. one is seen as particularly risky, karaoke venues. the tokyo governor, yuriko koike , once this done as soon as possible. we are coming up to the golden week holidays in japan, the end of april, the beginning of may, and that is usually a popular time for travel. he wants to put the brakes on that. osaka may see stricter levels. the governor was looking to have bars and restaurants closed or at least to ban alcohol sales, which is the kind of measure we have not seen before in japan. shery: we mentioned the olympics. they are kicking off july 23. what does it mean? isabel: right, well, while no one in the government so far is calling for cancellation, we did see a former minister from the

opposition yesterday in the stories we ran yesterday saying cancellations should at least be considered and we have had two senior government officials, including the olympics ministers, saying that things get really bad, cancellation is still an option. japan may be able to reign in cases to some extent with these emergency measures, but obviously, it cannot control the global situation. we have more cases globally than ever before. as has been discussed just now on the program, india and brazil are very far from under control and there's nothing japan can do about that. so would we be in the global position to have athletes come from all over the world to tokyo? i think there's a big question mark over that. shery: isabel reynolds with the latest on japan and its coronavirus pandemic infections. we have breaking news out of south korea. the first 20 days of trade, those numbers for the month of april are out.

exports rising 45.4% in april year on year. imports also rising 31.3% year on year. also, when it comes to the breakdown of those shipments, chips rising 38.2% on year. the daily average exports numbers, an expansion of 36%. to china, exports rising 35%, to the u.s., rising 34% on year. suffice to say, strong numbers. we have that extra lift from base effects, but still, double digit gains, and big gains on chip exports, shipments to china in the u.s. this is bloomberg. ♪

haidi: europe's -- seems to be crumbling by the minute. the super league is said to be reconsidering their breakaway european petition according to reports from the associated press, after chelsea said it is withdrawing from the european super league. we heard that the six clubs involved have all bowed out of the project, including manchester united, saying they listened carefully to the reaction from fans as well as the government and other key stakeholders, so this did not go down very well. we heard that the super league is reconsidering the rebel

breakaway competition. let's look at how asian markets are setting up ahead of the opening, soph. sophie: asian stocks set to extend the selloff. nikkei futures in singapore falling more than 2% while the yen is trading around the 108 handle. bonds are claiming as we digest the latest inflation data from new zealand. ahead of australian retail sales figures for flash numbers, aussie dollar losses below 78. mark cranfield pointed to upset potential for the aussie on a narrowing yield gap with the u.s. while we did see the dollar snap a six day loss due in part to the euro faltering on escalating ukraine-russia tensions, we do see it holding losses below its 50 and 200 day lines. it broke below the level and could provide more support for asian currencies. we are seeing the resurgence of the dollar overnight weighing on

commodities. oil prices under pressure along with gold. copper futures climbing as we saw copper in london retreat from a nine-year high so that's what we are looking out for at the start of trade in sydney, seoul, and tokyo. that is next. this is bloomberg. ♪

♪ >> welcome to daybreak asia from bloomberg's world headquarters in new york. i'm shery ahn. >> asia's major markets have just open for trade. our top story, virus concerns way on asian stocks. corporate earnings are overshadowed by accelerating infections. president biden says he's relieved at the murder conviction for george floyd's killer and he's urging congress to act on police reform.

india struggles to contain a record rise in covid cases. why the whole world should be worried. stocks across asia under pressure. let's turn to sophie cameron for all of the action. sophie: steep losses in tokyo continue. the nikkei up more than 1% with fast retailing at softbank leaving that drag. this is the anticipated return to a state of emergency for tokyo and osaka. the topics also under pressure, waiting to see if the boj will come through on tuesday morning. the yen trading at the one await handle. it's back above its 50 day line after the dollar bounce back from a six-day drop. turning to south korea. seven-day gain on tuesday with the kospi closing at a record high. the cost be losing 7/10 of one

this morning. rising covid cases on a daily basis. the korean won is on the back foot as well, even as we did just the latest flash trade numbers from korea showing continued pickup and korean exports for the first 20 days of the month. australia, aussie stocks slipping from a 13 month high yesterday. the losses are continuing in sydney. iron ore prices have stayed elevated. stocks falling more than 1% even as we saw production updates showing iron ore prices will find more support. the kiwi dollar losing a little bit of ground in the wake of the new zealand inflation data. we saw prices picking up slightly in the first quarter which may ease pressure on the rbnz to ease policy for a seat -- further. the longest run since november. the offshore yuan is up 1% this

month while pulling up, the rupee has weakened more than 2%. india becomes the global epicenter for virus infections. asia stock losses in april have been concentrated in adf as well as japan. the white line at the top half of the chart. it has underperformed global stocks this month in face of the pickup and infections in the region. haidi: let's get more markets. cyclicals are rotating among buying opportunities. let's bring in paul santos. great to have you with us. as we see these concerns over these new variants as well as some of these virus cases spreading like wildfire in places like india, does this change your asset allocation measures at all in terms of the recovery trade? paul: i mean, it is starting to

have an effect. i think that markets that are getting too comfortable with the reopening trade are at most jeopardy. the u.s. has delivered a lot of vaccines and continues to do so. we are positive there. our concern is more in the emerging markets, specifically asia. for lack of a better word, the comfort level is a little bit high. i would like to see the vaccine rate climb up a little bit before reaching that comfort level. shery: how are you hedging at the moment? are you holding more cash in the sidelines? what are you buying? paul: so the trade moving toward cyclicals has been panned out at

this point. we are starting to make moves back to more longer trending strategies. those will be in the technology disruption space, the energy transition space. we are still bullish on china. we are still overweight on china. again, this comfort over reopening and the virus has effectively passed. i would like to see the vaccine rate a little bit higher in asia for us to be very bullish. to answer your question, we are still working using derivatives to hedge this -- the downside. we see more comfort in that in the u.s. market. what we have seen is the derivative profile is right now very positive. long-term volatility has come down quite a bit. short-term volatility has also come down. that allows us to take longer positions and pay very little for protection. haidi: when it comes to china,

we continue to see a transition to cleaner energy. we've heard some concerns about potentially this veering away from traditional polluting industries, that it could lead to higher default rates. is this a concern at all? paul: so, china, we are very positive in terms of its potential on the energy transition space. just the gap that china has is the largest one. if china moves to a more energy friend -- transition state with more energy transition focus, we are going to see a lot of positive output coming from that trade. that is going to be at the disadvantage of more traditional place. we see that all the time. i think it's going to be a more

significant drop in china than it has been in other markets where it has been a little bit more moderate. haidi: let me zoom out and talk a little bit about the dollar. we continue to see this downward pressure on the dollar. where do you stand on the trajectory of the greenback? especially as it comes to the impact that it will have on asian assets. paul: the way that we see the dollar -- there's one sentiment driven and one data-driven. from a data perspective, all signs point to dollar depreciation. it is still going to be in that range that it has been in for the last four months. at this point, we see dollar depreciating. a lot of are investors in asia where hedging back to asian currencies. now, the argument against that

is that, in terms of the reopening trade, in terms of vaccination, in terms of markets and consumers being more comfortable getting on with their day, we see a lot of positivity in the u.s. market. we have seen a lot of sector volatility in the u.s. market leading to opportunities. i see cash flowing into the u.s. market. that will be supportive of the dollar. basically, we are seeing some depression of the dollar in the next month or so. it's not going to be significant because of this risk on trade. one of the places to get risk is actually in the u.s.. shery: great to have your thoughts. let's turn to vonnie quinn with the first word headlines. vonnie: the group behind the european soccer super league say they are reconsidering.

the ap quotes a statement from the super league saying it will now determine how to reshape the project. the plan announced faces massive backlash from france, -- fans and politicians. johnson & johnson will resume shipment of the covid ninth -- 19 vaccines to the european union. the regulator said cuts -- clots should be listed as a rare side effect, allowing governments to make their own decisions on restricting uses. it echoed the review of the astrazeneca vaccine. u.k. prime minister boris johnson says britain must be ready for another wave of coronavirus infections later this year so he insisted plans for reopening the economy are still on track. comments came as he launched a new program to limit covid strains. he says u.k. cases are steadily

falling. >> the majority of opinion in this country still firmly of the view that there will be another wave of covid at some stage this year. so we must, as far as possible, learn to live with this disease as we live with other diseases. vonnie: global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. haidi: we are seeing toshiba trading down under six present after casting doubt on that takeover offer. this is becoming a convoluted corporate story. the potential acquisition offer has stalled after the new proposal lacks sufficient information or evaluation. we had that initial pressure in april. that sent shares storing. we are seeing the come down now. the board urging caution over

these discussions, saying the proposal may not lead to discussion. the documentation is insufficient. we are not sure on what this means for some of the other parties that are said to be interested as well. the potential count was expected in canada. we are hearing that there is something of a stumping block in that cbc proposal. we are continuing to watch toshiba, down 5.5% in the early morning it's -- minutes of trading. shery: joe biden calling the conviction of derek chauvin a step forward after the case that touched off nationwide protests over police brutality directed at african-americans. he and, harris spoke after the verdict was delivered. >> this could be a giant step forward in the march towards justice in america. let's also be clear, such a verdict is also much too rare.

>> we still have work to do. we still must reform the system. this bill is part of george floyd's legacy. the president and i will continue to urge the senate to pass this legislation. not as a panacea for every problem but as a start. shery: let's get more perspective on the legality surrounding the case from jan alexander. ayana, when it comes to the future of police reform, what sort of legislation are we seeing out there? what is being done? >> as of right now, there has been an increased call for the passage of these george floyd justice and policing acts. it passed in early march in the house. now police reform advocates are calling for the senate to follow suit. they think the verdict may give them the footing to do so.

haidi: where do we go from here? there could be sit -- a procedural appeal. we are uncertain as to where the sentencing is going to fall, right? ayanna: there has been a theory that an appeal is probably coming sometime this week. especially from different criminal defense attorneys. we should keep the momentum going. at this point, i think the civil rights activists that i've been speaking with, a lot of people are just trying to focus on this moment. finding derek chauvin guilty of all three counts wasn't really expected, from what i've been hearing. the fact that that happened in the fact that it only took the jury less than 11 hours to deliberate was really shocking. at this point, people are trying to stay in that moment. the work doesn't stop.

there's been an increased call for the end of qualified immunity, the doctrine that has been protecting police officers from civil suits and countability. at this point, i can't say which way it will go. haidi: people are taking it in. you can see relief and some celebration. as president biden said, this verdict is far too rare. should would be celebrating something that should be the baseline for something that never should've happened? going forward, the people you are speaking to, what are they saying about the measures that need to take place? does this set some sort of precedent, legally, in the criminal system? ayanna: i've been hearing that this case has set a precedent, absolutely. especially in terms of the other fellow officers who potentially

may go to trial who were involved in the death. i've been hearing that there's potential for other police misconduct cases that happened in the past that could be taken a look at. they could potentially be reopened if possible. a lot of people are more focused on the legal system right now. there are still calls for congress to put in more work as far as police accountable he. the start is the george floyd is --/justice and policing act. shery: i on alexander with the latest. coming up next, a look at regulators considering restructuring an offshore unit. we have the latest. netflix plunging and extended trade. we break down the numbers. this is bloomberg. ♪

shery: dollar bonds have sunk again amid fresh reports regulators are considering a restructure. the offshore unit says it's returned to profit and has followed foundations. rebecca john wilkins has been following the story. it's been going back and forth. what is the latest? rebecca: mixed messages of news that broke last night. . [inaudible] it had profit in the first quarter. it is ensuring liquidity. all of this will have investor concerns about the ability to

serve its debts that are coming next month. however, it probably doesn't really address the fundamental concerns investors have about this unit. what is the strength of it in a potential overhaul? will there be any kind of restructuring on those offshore bonds? they don't have the same kind of protection that the onshore bonds have. that leads to the second story. that credit data and analysis firm reported last night at well that a debt restructuring on the offshore bonds is one of the options which is under discussion. that really provoked a selloff in the bond. haidi: given all of this uncertainty, what should investors be watching out for

next? rebecca: crucially, they are looking for any kind of clarity on what happened to the offshore unit. they will be looking for any kind of reassurance that they won't have to accept a haircut or spend $22 billion. haidi: we will be watching. that's the latest on quite wrong. up next, hsbc celebrates a pivot to asia. brewing discontent within the banks asian and london executives. more on that next. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. elon musk has pushback on a report that a fatal crash was linked to its autopilot feature. he said that data shows that the

driver less function was not engaged. authorities said it appeared no one was driving the car before it crashed into a tree and into flames, killing its occupants. takeover talks between microsoft and discord are said to have ended after the videogame chat company rejected microsoft's billion dollar bid. discord is focusing on a public listing in the future, several other companies tried to bite in recent weeks. the service allows gamers to communicate and gain popularity during the pandemic. china mobile saw profits rise 2.3% in the first quarter, faced with expanding 5g networks. it lost more than 2 million users in the same time, worsening its year-long contraction in a saturated market. the company was listed in new york following an investment ban.

shery: the global heads of hsbc investment banking, commercial banking, and wealth are relocating to hong kong this year as the bank accelerates its pivot to asia. senior bankers expect that to be a cause of friction with regional chief peter wong, who has enjoyed a high degree of autonomy. candace acker araya's has this story. what are the key issues causing these tensions right now? candace: good morning. like you said, hsbc is in the midst of turnaround involving moving a number of key leaders. it's not surprising [inaudible] it's going to complicate the jobs without a bureaucracy. you brought up a key issue.

a lot of the bankers are expecting wong, who had a lot of the tana me in running the region. one person said to us that he expressed unhappiness about the prospect of the relocation that is taking place. i want to be fair here. there are benefits to these moves which are intended to cement h a species commitment to the region. we have the head of some of these key businesses, investment banking, commercial banking, among others relocating in hong kong, it's because market. there are people who see both sides of this. there's no doubt some portion also. haidi: how does this play into the asian business? candace: hsbc has started a search for successor.

he's been mentoring local bankers in preparation for his resign meant. it is complicated. for the moment, it is regency. shery: how important is it for hsbc that these changes go smoothly? candace: i think it's crucial. hsbc has unveiled a big shift in its focus last year. the bank has air marked investment. that's on top of billions more in assets, shifting some operations in europe and the u.s.. it is key for leadership to be firing on all cylinders. this is a region where you have

political tensions. i think it's crucial that they get the ship righted. shery: great to have you. let's take a look at the state of play. 25 minutes into the start of trading in asia. we are seeing abroad downside for another session. virus cases rising. concerns about new variants and renewed concern about the economic impact. the nikkei 225 down 1.3%. there are worries that tokyo will have to go through a third lockdown in tokyo as we get closer and closer to the olympic games. the kospi down by nine tense of 1%. in australia, downside. losses under 1%. new zealand, also the outperform or with moderate losses of 4/10

of 1%. coming up next, the pandemic is becoming the worst in india. it will be a problem for the whole world. we get more on that story. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile, you can how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings.

♪ >> you are watching daybreak: asia. i am vonnie quinn. president joe biden says the murder conviction of a former minneapolis police officer is "a giant step forward their jerry found derek chauvin guilty. the jury deliberated for about 10 hours over the killing that triggered worldwide protests. pres. biden: this can be a giant step forward for justice in america. let's also be clear, such a

verdict is also much too rare. >> the europeans union top diplomat says that 100,000 troops have been the largest of built up on the border of two countries. that raises the possibility of further con -- conflicts. bloomberg talked to ukraine's foreign minister that called it alarming. >> this is a real escalation and i am deeply concerned with the potential consequences of that escalation for my country and this is why we call on france and partners to stand by us not only in words but also in deeds. >> iran's president says that negotiations on reviving the nuclear deal is 60% complete and could be resolved quickly if the u.s. acts with what he called, honesty.

world powers concluded the latest round of talks and are preparing to meet next week to focus on what is needed to fully restore the accord. the iranian lead negotiator says that talks are on track but challenges remain. global news on air and blueberry quicktake powered by more than 2700 journalists and more than 120 countries. >> india continues to battle its biggest wave of infections yet, reporting more than 200,000 daily infections. that makes up the second worst hit nation globally behind the u.s. there is not just very concerning to humanitarian crisis, but also a major imports into investments in the months ahead. why does this matter for the world specifically, why does it matter for investors for markets? mark: as you said, it is not

just a humanitarian disaster. it makes up 18% of the worlds population but also 12% of the workforce. it is the fifth largest economy. not only is global growth going to be affected, but you will see supply chains disrupted, and inflation spurts. this will have real ramifications and that is assuming that it stays and india's borders. we are seeing a surge in neighboring pakistan and bangladesh and across the asian region. we are seeing increasing numbers. there are signs that even if this was a state of india, this would be bad for the economy and the world everywhere, but it may not stay in germany. shery: and we have seen the fintech's under pressure. sophie: down up --

mark: down about 8%, but that is not given that much that it was the record highs. indian stock markets, they tend to have a little bit of a premium, it tends to be a favored trade on the macro, structural story, the idea that it might be the next china growth story. but even it the price to earnings, and makes it seem very expensive. one of the most expensive stock markets, so therefore, it really has a lot of downside. the indian rupee has more downside, and it will spillover probably to other equity markets, particularly in asia. >> is there hope of this being contained with the vaccine rollout -- there are concerns about efficacy versus these new variants, how is the role actually going? >> the vaccines provide a note

of optimism. they carry the work extraordinarily well. israel, we have seen the cases fall by 98% and that is based on the seven day average from the peak. in the u.k., they have fallen by 98%. we know that and countries that are ahead on the vaccinations, they are doing an extraordinary job, and they are reaching a cause i'm unity very quickly. the problem is is that the global vaccination rate has been slowing. we are hearing all these talks of certain countries stepping up the campaign, but overall, globally, the vaccination rate has been slowing. in a country like india, it is an immense project, and they are worried about supplies. the extra problem is not only is india worried about domestic supplies in the vaccination where it is behind, but india is also -- the pharmaceutical

factor of the world. it is producing most of the vaccination for the rest of the third world. if india starts limiting exports and we were worried about domestic supply, that is is hey problem on countries relying on vaccinations produced in india. >> half an hour into trading. we are seeing asian stocks experiencing the worst day since march. its return to sophie for all of the action. sophie: we are seeing asian stocks being led lower, and being by more than 1%. we still have socks -- stocks sinking, and under pressure by more than 3% with local media reporting it is on watch by japan after tencent investment, which they have said is not for a business.

it is retreating after a seven-day gain, and among the laggards this morning. considering selling the rate unit. eyeing the $65 level, over by half a percent. in the korean yuan -- and to massive trade numbers that we got out. to check out the yen back below the 108, although we are seeing the dollar -- and whether or not there is a turnaround for the currency, we are trying with some key levels. make sure with the dollar there,

haidi. haidi: should after the latest results show the easing of the pandemic. this is really well flagged. netflix has been warning for a long time, -- >> and the first quarter of 2020 , so they were a warning growth is slow, but no one expected it to slow by this much. they reported 3.8 million users in the first quarter, below their own forecasts. part of it is that they ran out of things to attract new users. a lot of production was all on hold, meaning they did not have new shows ready in time for the first quarter. you were just talking about india, with the option still on hold.

they are not able to make new shows for those markets. in the short-term, this is kind of here to stay, longer-term, the more positive picture. if you look at the other stocks that reacted in after hours as well, it is those stay-at-home stocks. it is typically that the covid boost is gone. the feel-good factor is now dissipating. >> when it comes to netflix, they maintain that their business is still healthy, and we have them announcing buybacks. what do we know about the fundamentals? >> it seems like alarm bells in terms of the performance of new subscribers -- at the financials are the best and strongest they have been in history, revenue grew and they expect to break

even on cash this year. cash flow, returns, positive territory, and they have managed that well. all of the things that any other company, you fixate on during an earnings call, but this is different. such steady growth for so many years and parabolic growth during the pandemic year, it is hard to double down on those. there was also a lot of attention on competition. this is where disney plus took off and a number of markets. viacomcbs bought a market. netflix really -- they came out that competition was not a factor in slowing growth, nor was pricing. netflix is more expensive than these competitors and they were quick to push back on this and say, those are promotional prices. these are not the prices that they will have long-term. top and bottom line growth, pretty good. >> before we let you go, we also have apple spring product launch. anything exciting?

>> markets were not moved on this, but a new generation of ipads, 5g enabled, better with an upgraded super cycle and there are lots of people with old versions of the ipad and going from the bullish elements that we will see people by these more expensive ipads to upgrade from the old ones. we also have some other nifty things, so check out the terminal with endless stories on the avalanche. >> ed ludlow in san francisco. coming up, we will talk commodities. citigroup's tracy has the outlook. this is bloomberg. ♪ ♪

♪ >> bhp reported its iron ore shipment slipped almost 7% last quarter on weather-related disruptions. this comes as the global miner struggles to keep up with soaring demand. the broader bloomberg industrial metals gauge -- joining us is the asia commodity strategist. tracy, we have been talking for the longest time about this commodity super cycle, is the demand in china there?

>> yes, we think the long anticipated commodity rally -- and the rest of the world. for china specifically, we have seen double digit growth in the current demand over the past two months. a pretty decent base in 2022 remember that china returns pretty soon after covid and into the second quarter of last year. we are also seeing steel prices reaching multiyear highs on the back of strong construction activities from the property sector as well as solid demand from the export and manufacturing sectors. shery: and yet, you are neutral on iron ore. does that because we already solve the rally? tracy: indeed. we were seeing commodities produced at a cost of $20 to

$30, treating $80 to $100, touching multiyear highs of over $185 potentially. prices already make things move, and potentially, we will see a mean reversion. the process of that mean reversion can be pretty bumpy because still demand remains very solid, and making margins also at multiyear highs with chinese steelmakers making on the cast basis, and that is to $300 to $500. so some of that profitability is going to be shared with iron ore miners despite the iron ore being solid. haidi: you look at the easing, surely the risk for iron ore prices, and they are all pretty much coming in short of production estimates.

is there a real struggle to keep up with the level of demand that we are seeing out of china? tracy: indeed. over the next one to years, china developing and projects under construction, because we see development, and developers, also under pretty strict scrutiny. it is not happening today and our view because they are still trying to facilitate out of existing products. this is also a part of the broad china credit as per this offense concerned. indeed, we have seen credit

impulse falling pretty substantially from the peak and infrastructure seeing the first wave of that weakness, which will have the old economy sectors. >> seeing that we continue to see supply disruptions out of chilly, but also some of the chinese being impacted with the government ambitions to carbon neutrality by 2060? tracy: copper is an interesting one because we have seen pretty strong end-use for copper. and construction activity also picks up because of booming u.s. housing market, and these are all very supportive of coverage demand. we are seeing the market shifting this year, and

potentially rebuilding in the 16 to 20%, taking the stock price of around 1000 -- $10,000 to $11,000. the super part of that cycle is going to happen over the next three to six months. we see the most deficit among the next 11 to three years. shery: palladium near record highs, your call? tracy: palladium is set to stay in deficit for the next two to three years given a lack of supply response to high prices, so we expect rallies to continue. we do foresee stock prices to touch $3200 within the next one to three months, as well as

potential return of demand after the ongoing chip shortage issue that automakers get resolved. by then, you will see a wave and that was calculated. >> great to have you, tracy lia o. turning to oil, the world's biggest independent trader smashed records. exclusively telling bloomberg where he views the market going next. >> 20 was a strong year. we have not finalized results yet and as you probably know, we do not normally publish our results in the same way a public company does. it was a strong year and it was given principally by strong markets. if we had to make a tango, it

was an extraordinary period of 2020. >> how significant were those contango stories trades for you then -- to be able to buy oil so cheaply and store it and sell it for a higher price? russell: it was important, but at the same time, we will working from home and we were trying to get everybody set out. we were lucky to have good support in making that happen, a good experienced team, and so during that time in march, april, may, our inventory swelled because it is well-known, there was a billion barrels of excess oil. the biggest consumer of that

excess infantry with china, china bought a huge chunk of crude oil over the summer, and edging its way through it. >> it has been a year of challenges and opportunities, i wonder if you think we will ever see negative prices again, is the market going to change in a way that that just will not happen again in the future --what are your expectations? russell: if you fast-forward to 2050, the oil market will look very different. hopefully, carbon agreements and carbon reduction agreements, we will hear a lot about that this year. when is the oil -- where is the oil price going to be in 2050, yes, we could be headed a lot lower at the man picks up, but we have a long way to go before that picture emerges in terms of demand. >> sorry.

russell: we are still expecting demand to increase. we have it peeking around 2030. there is been a lot of commentary over the last couple of years about when that peak is going to come. we are still confident that there is sufficient prose around the world principally in emerging markets that we are going to peak again in about 2030 and then decline will set out. >> that was russell party. we do have an -- russell hardy. we have an alert for a potential state of emergency for tokyo and other regions. tbs a telling tokyo could be asking restaurants to close in the next day of emergency. they will ask department stores to close during the state of emergency as well.

tokyo will be seeking the state of emergency from april 29 to may 9. this reports that is not just tokyo with japan also declaring a state of emergency. that formal decision could be announced as early as this week and we will be following that. this is bloomberg. ♪ ♪

♪ >> a quick check of the latest business flash headlines. netflix shares plunged after he reported dramatically lower first quarter growth as people emerge from pandemic lot downs. it added just under 4 million new subscribers under its phone -- its own forecast. it was a stark contrast to the beginning of last year when netflix added 16 million new customers. new show output was also slower as covid 19 disrupted production. apple has unveiled its updated ipad for a faster processor, 5g connectivity, and other upgrades. they will start out at $799. it is banking on retaining consumers with the return to offices and schools. apple will unveil the new imac and iphone and the new gadget that helps people find physical

items like wallet and keys. the key offshore unit of buybacks -- far wrong -- huarong says it will focus on cutting risk and liquidity. there are reports that regulators are considering disrupt during its offshore. >> coming up on bloomberg markets, credit suisse john woods give us the outlook and that is weighing on markets. it is still weighing performance. plus ubs regional cio joints with the opening of mainland and hong kong markets at the end of the hour. that is just about it for daybreak: asia. we look to the start of trading and hong kong, and shanghai. we are seeing asian markets drag

lower following those declines on wall street. bloomberg markets: china open is next. this is bloomberg. ♪ so you're a small business,

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♪ >> it is 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets: china and changi. -- china open. market sentiment turns negative as rising virus cases resumes concerns. oil slumps by the most in two weeks. president bin