calling it a step forward in adding congress should act on police reformed. rishaad: covid looking set to kill more people globally in 2021 than it did last year. but why the whole world should be especially worried about what's happening in india. haslinda: looking red across the board in asia. asia tracking the losses in wall street overnight. we had stocks falling on consecutive days. that has not happened in a very long time. rising concerns about the first wave of virus cases. that may derail economic recovery and knew letdowns could be through. csi 300 are trying to get into the positive, looking flat at 5083. rishaad: let's get to our -- let's get to our guest. thank you for joining us. is the reflation trade done with now? >> good morning.

we think not. we believe it is just taking a pause. the reflation trade to us is not a shortened thing. i think there is a lot of focus on the big rebound in economic data where they look at economies like the u.s. . it is undoubtedly taking a bit of a pause. we have seen new covid bodies. we have a lot of positive data. there are legitimate questions about how much of an upside we can get. but when you look through these factors, these factors are fundamentally -- within a few weeks or months. as long as they cover that policy support, we don't think the reflation trade is going away. rishaad: with credit suisse going on the bond market, yields are creeping up and suddenly we had a realignment, but the yield curve has moved down, especially the belly of it. give us a sense of why and if this is another pause. manpreet: it is really linked to

what measuring we've got from the fed. if you go back a few weeks, we will get into that one extreme of reflation where the data was improving, but that also meant that market expectations would lift off at the end of the policy that were being brought forward. but what the turning point was that came to that point was the fed told us that the improved data is important, but the average inflation target does not mean the fed is tightening policy. and i think that, together with the one-sided positioning is why it took the pause that it did. to some extent we believe it's justified. we still don't believe the rise and yield is completely over. perhaps the rapid pace might be behind us. but at the end of it, that story on reflation, at the end of the day, you know that move in yield has been correlating what we saw in the pause and equity markets,

and of course the rebound in gold prices. for us, it's really just a pause. i think especially looking at the q1 earnings season, the equity market in the u.s., that gives us more reason to say that optimism looking out, especially in the rise, still remains very justified, even though if we get in the short-term bond yields. haslinda: how about chinese bonds, can they outperform? are you high enough to see a premium of inflation? manpreet: it depends outperform against wet. when you look at what bond yield has done relative to treasury, bonds, the case may be a little bit less attractive than it was in the past, but obviously that case is still there. it remains stable or even stronger against the dollar as we expect. but i think when you are stepping back a little bit further, the government and

corporate bond market, we still favor kurt -- corporate bond market, emerging-market, dollar bond market. the higher quality bond yield is that it's definitely higher quality, but it's extensive. it is still very low for risks. we believe with the reflation environment, the risk of you ending up with negative and bond is still too high for us, especially if you have the choice with higher yield or emerging-market dollar bond, or even equity markets. for us it's what emerging-market dollar bonds, asia -- asian market dollar bonds. when you look at the yield for the rise, especially what you get for the european high-yield, that looks much more attractive to us the necessary looking for safety and government bond markets. haslinda: the yuan has been under a lot of pressure. has dollar yuan peaked question mark -- peaked?

manpreet: we believe not yet. a large part of what happen has to do with what happened to the dollar. almost a hold up with the dollar. you get the yuan and a need of emerging-market currencies. i think that would be one big factor. we still think that dollar can correct. we had a big downdraft and then the rally. but strengths and rallies in the dollar have gone for percent and 6% in size and we are approaching those levels. just given, especially as the dollar, u.s. treasury yields take a pause or in slow, we think that can mean dollar weakness can resume. you look at the chinese women be, we think it's falling the middle image of that. so some weakness used to be understandable. but it is a bearish outlook and we think that will support the remedy. and as we discuss bond yields in china, most of what the renminbi does is make a stronger case than compared to other major

currencies like the euro or sterling, where they are lower. think it is a matter of time before the renminbi resumes for strength. haslinda: this morning we heard from the former pboc governor talking about how the yuan's internationalization would be a gradual process. where do you think the yuan is in this internationalization? manpreet: internationalization is a long-term profit. we have seen it with other currencies. going back to a couple of decades ago to the euro and there was talk of how the euro could end up replacing the dollar. i think it's not about replacing or about greater internationalization, these are all matters. i think the chinese renminbi is a significant currency and when you measure it, the measures

reserve, but that is a long story. ethic it's quite difficult for investors to latch onto that. also with a directional view. i think what is much more clear-cut and easier to take if yuan is a rise in internationalization that helps, even if it happens very gradually. but following the relative interest rate and with the u.s. dollar does. we think that is still going to be front and center for the chinese renminbi, and for us, that's what takes us modestly stronger in six to 12 months time. rishaad: i want to get a sense of what your clients at the moment are worried about. how closely would it look for the debt possible before it's smoothed out? where they concern in are they concerned about future market disruption similar to that question mark -- that?

manpreet: i think the bigger principle is what everyone is focused on. we have seen an example of one company and we all know what the public domain are. but the bigger principle is the extent of government ownership. the century owned soe sector. we look at china's investment-grade bond, that does factor into a key part of where bond yields are priced. and in many cases, the credits underline them. i think that is the lens in which i keep an i on how the situation develops. it's not one situation, one company, but the bigger question is, there are valuations with china investment-grade dollar bonds or is there room for adjustment? we see how the facts play out, but it's what we spoke about earlier. if you are putting money to work today, arguably that makes it one more factor for looking more towards the debt or looking at higher yield bonds.

this is a question of investment-grade bonds and high-yield. rather than to the government ownership question. it seems to matter what we think is happening more broadly on the reflationary story. significance for china -- as an investor we think there is an option. which is to look independently as to what's happening. haslinda: before you go, about india, surging cases, could that put a break on the markets in the recovery story? manpreet: it certainly does raise some questions. you listen to policymakers and the balance between curtailing activity to curtail the spread, but you can also see the balance of not having the full economic impact of a lockdown. so it is very possible, it's

likely, but it's a broader question at the end of that. but there's emerging markets in japan where questions are coming up about whether there will be a new form of shutdowns. it feeds into the questions about reflation. if there is a risk in the short-term. i think there is a balance of near-term risks, which is the vaccination. we think about economic normalization and possibly where we see it. the other big assumption is how quickly of expected cases do you get to the level of vaccinations where you can resume greater levels of economic level is asian. -- legalization. you can argue a strong case for these. i thing in the shorter term, we are looking at the next couple of months and it does raise the question of whether you get divergent dots. you see company -- countries like asia where you see countries rise and whether that leads to a delay in normalization, and some divergence and market

performance where they look at equity markets or the currency. haslinda: markets are definitely spooked by the virus cases today. standard chartered private bank, thank you for your insights. let's get the first word news with vonnie quinn in new york. >> tokyo's governor says she -- government of a state of emergency to in the curb. infections have jumped to level not seen since the second state of emergency in january. the prime minister stepped up restrictions in tokyo and other regions to try to slow the spread ahead of the summer olympics. johnson and johnson will resume shipments of its covid vaccine to the european union after the drug regulators said the shots benefits outweigh the risks of a positive -- possible negative risk of blood clots. it's a very rare side effect, allowing governments to make their own decisions on restricting you to age or

groups. the group behind plans for european soccer's super league are reconsidering after all six of the english clubs involved indicated they are pulling out. the super league says it will now determine how to reshape the project. the plan announced on sunday faced massive backlash from fans, players, coaches and politicians. local news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts and more than 120 countries, i am vonnie quinn and this is bloomberg. >> india's search in case count is causing a turn about the virus mutation in setting fears that 2021 could be more deadly. when almost 2 million people were killed by covid-19. the details or later this hour. >> president biden calling for

police reform after the former cop who killed george floyd is found guilty of murder. they are asking, what comes next. this is bloomberg. ♪

president biden: this could be a giant step forward in the march for 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 for every problem, but as a start. rishaad: president joe biden and vice president kamala harris speaking at a jury after the -- after a jury found derek chauvin

guilty of murdering george floyd. what could happen next now? there is bound to be an appeal, which will be filed. i suppose that's what we have to look at. >> yes, i have been hearing, since before the verdict from various criminal defense attorneys, that the groundwork for an appeal from the defense has already been laid and it's to be expected. i'm also hearing as of today, that eric nelson, who is derek chauvin's defense attorney would try to file for some sort of appeal later this week. there were a lot of emotions in this case, so we will probably see it sooner rather than later. haslinda: what will the impact be on other cases of police misconduct, especially after the other three officers were

involved in george floyd's death? ayanna: it has definitely set a precedent. we were waiting for what would happen if the other three officers were involved will go to trial. our eyes are looking at summer 2021 to see if those police officers will actually go to trial. and we are also looking at karen potter, who was accused of murdering daunte wright -- kim potter, who was accused of murdering daunte wright. he could come up in these places. we have to wait until the summer and until later this year to see. rishaad: we had a lot of civil rights advocates there and law enforcement as well. what has been the reaction from these different sides? ayanna: it has been mixed reactions. really from the civil rights advocates, they applaud the verdict, of course, but they are basically saying the work is not done. this kind of invigorated the call for qualified immunity,

which has shielded police officers and government officials in the past from going to trial in the first place. so there has also been that call for the united states senate to pass the george floyd justice and policing at. that provision passed the house in march. so we've also got eyes on congress. as far as law enforcement, the reaction there, they are saying qualified immunity does not stop trials or investigations, so maybe we should hold on that momentum and take a step back, maybe take a look at qualified immunity with a find tooth comb instead of eradicating it. haslinda: still to come on the show, the continuation of regulators considering restructuring the debt of its offshore unit. we have more on that. this is bloomberg. ♪

rishaad: more ripples from china. the dollar bonds have sunk amid fresh reports regulators are considering a restructuring. with key offshore unit has a profit and has a solid foundation for transformation. our reporter has been following this story. rebecca, give us a sense of what has been going on. they say everything is hunky-dory. why are we getting these moves? >> we are certainly seeing another volatile session. clearly in the news that the offshore unit is returning to profit is positive. they say they are ensuring the quality and that will ease concerns about the vulnerability to refinancing that coming debt coming the next couple of months. however, it does not solve this fundamental concern over the

unit, which is the pre-financing arm for china's bond. and they are still worried about that and still looking for clarity. and we saw this report from credit data and analysis. that the situation that regulators are considering is a potential restructure on the dollar bond, which is the investor worst fears. haslinda: rebecca, tell us about the short seller in their dollar bond. rebecca: the reported restructuring did trigger this selloff in the bond during that session trade last night. some of the biggest drops we have seen thus far. however, we did see this partial recovery. and i think it reflects this real uncertainty around investors convictions about

what's going to happen there. we are seeing headlines, contradictory headlines move the bonds either way. and it's important to put that into context into the nature of the situation, which is binary of restructuring or not. how is this a binary situation for investors? rishaad: what are investors looking at next? what are they looking for next? rebecca: ultimately, all they want is clarity for beijing or clarity for regulators about the overall plan. they want to know exactly what beijing or the poc is going to do with it. and particularly, the focus on what will happen to china, that offshore unit that reported its positive profits, and whether or not investors are going to see a head -- a haircon their dollar bond investments. haslinda: our credit reporter

rebecca wilkins. a quick check of the latest business flash headlines. tiktok is facing a lawsuit on behalf of millions of children in the u.k. in europe. it accuses the popular video app of violating eu's data protection laws. it seeks to stop tiktok from illegally processing millions of children's information dating back to 2018, and demands any of its personal data that it has be deleted. -- has said sorry for its handling of a complaint over what she said was a problem with the cars break. the woman climbed on top of a tesla monday at an auto show to voice the concern. the apology follows pressure from two government entities that came less than a day after tesla said it would not compromise with unreasonable demands. china mobile sold profit wide 2.3% in the first quarter,

saying it's expanding 5g network. china's arduous wireless carrier also lost more than 2 million users, having a worse year-long contraction. the state owned company, which was delisted in new york following an investment band has been tightening cuts to offset increasing spending for 5g. rishaad: netflix shares tumbling as the results show the easing of the pandemic lockdown is dragging growth down more than ever anticipated. it is forecasted to 6 million as ed ludlow describes. ed: the covid boom is well and truly over for netflix. the video streaming platform added 4 million subscribers, well below the 6 million it originally forecast. it's a double whammy for netflix. consumers are coming out of their covid hibernation's, streaming less video content at home as they returned to work and return to school.

but netflix wasn't able to bring new content to the platform in the first quarter because in number of productions globally have been put on old for the second half of last year because of the pandemic. some markets like india, production is still on hold, although the outlook is stronger for the second half of this year. netflix said, user growth should also pick up in the second half this year. there was also increased competition for the likes of disney and viacomcbs for their streaming platforms. netflix really downplayed the impacts of competition saying that those rivals don't operate in international markets, where netflix saw a slowdown. in terms of financials, netflix did perform well, it's revenue grew by 20% in the quarter. the company expects to breakeven on cash this year and be cash flow positive for next year. ed ludlow, san francisco. rishaad: let's have a look at chinese markets. as we go to the lunch break. we've got shanghai.

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>> it's 11:29 a.m. in hong kong and shanghai. 11:29 in new york. i'm vonnie quinn and here are the first word headlines. president joe biden said the murder conviction of the former minneapolis police men over the death of george floyd is a giant step forward. they also called on lawmakers to do a police reform to ensure an acting change. a jury found derek chauvin guilty of second-degree murder and to lesser charges. a jury deliberated for about 10 hours for the killing that's part national outrage and triggered worldwide protests. u.k.'s prime minister boris said

britain must be ready for another wave of coronavirus infections later this week -- this year. he says plans to reopen the economy are on track. the comments came as he launched a new pride graham to limit the impact -- program to limit the impact of covid strains. though u.k. cases are falling, it's wrong to think the virus has gone away. p.m. johnson: the majority of opinion in this country is 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 have lived with other diseases. >> iran's president said negotiations on the 2015 nuclear deal being revived are 70% complete and could be resolved if the u.s. acts with honesty. they completed the rounds of talks in vienna and are prepared to meet next week to focus on fully restoring the accord that the u.s. abandoned in 2018.

iran said talks are on the right track, but challenges remain. the european union's top diplomats as a russia's military escalation at the 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. the 27 member block is not preparing extra sanctions. ukraine's foreign minister told bloomberg that russia's buildup is 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 called on friends and partners to stand by us, not only in wars, but also in need. >> global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts and more than 120 countries. this is bloomberg. haslinda: the markets are

looking pretty red. asia had its biggest drop in four weeks. japan, korea, hong kong is leading the declines. here is how it's looking. msci asia-pacific index expanding its drop to 1.3%. japan is down by 2%. report suggesting the government has decided to declare a state of emergency. in tokyo, a formal decision is expected to come as soon as -- the csi 300 at lunch. before we went to lunch it was in positive territory. some stocks we are watching, toshiba tumbling after a buying offered -- offer has sold. they are buying 13% for the commercial bank. that stock is down by more than 2%. hsbc also trending lower. it has moved to relocate some executives from london to hong kong causing some discontent. partly down by almost 4%.

it is not seeking to sell and is reported. this is their railway business. rishaad: let's have a look at india as it struggles with covid cases. 206,000 new ones in 1700 deaths on tuesday. the latest bloomberg opinion piece said things may get much worse for the country in the coronavirus could kill more people this year than last. almost 2 million people died. let's go over to sydney. why do you think this pandemic is going to be more deadly this year than last? >> sadly, we are already pretty much two thirds of the way there. last year it was about 1.8 million deaths. it would be one point 2 million people who have died. there had hardly been any debts. more than 4 million in any week.

here is where i am in australia. the vaccines are rolling out very fast and i have seen optimism. what is scary is what's happened in countries. india is the most prominent one. zillow, iran, iraq, columbia, the philippines, all these countries, it's as bad now as it has ever been and they are much less able to cope in terms of vaccines and capacity than some of those rich countries coming out of there. haslinda: to that point, won't emerging countries now the able to tackle them in the same way that richer companies have finally managed to? david: i think they will be. india, which we are watching, is the world's biggest producer of vaccines.

there will be the capacity to deal with this. but about half of u.k. debts from covid in this pandemic have actually happen since the vaccine rollout began in early december. because there was already a mention of cases at that point. and sadly, it is just working through it. in a country like india the population is much larger. the fed capacity is worse if you look at the reports out of india in terms like hospital beds, oxygen and -- it's just not sufficient. the health-care system is that much weaker. so far, nearly half of all deaths from covid were in just the u.s., the eu and the u.k. but at this moment, it headed towards countries where there is not as much vaccine access, and there is not as much safe capacity. that is a warring prognosis -- worrying prognosis for the rest of the year. rishaad: so the problem with vaccine distribution is playing into this. what about the vaccines?

there are reports that india has a double mutated virus that could cause all sorts of problems. david: it is still -- little understood that. hopefully -- we simply don't know these new variants early on. hopefully the vaccines will work as comparably well against the new variance. i was looking on numbers of it the other day. i have a huge oversupply. low income countries, the lowest income countries have pretty good -- because they are covering it at about 73% for this year. it's really in the middle income countries, like india and like brazil. the lower middle income companies like india, it's 12% like the number of vaccines about on order.

28% up the middle income countries like brazil. obviously, there an ongoing debate about how to handle this. the new wto convened a meeting in geneva of different groups trying to tackle this. she is the former head of -- which is the un's now back partnership to try to improve medical access. with there is a real problem. generics, manufacturers, weighing these intellectual property protection so that covid drugs can be rolled back faster. rich countries are saying that is not going to solve the problems and it may make it worse. i think a wave is a good idea, but whatever the solution is, the situation right now is that we are failing to vaccinate everyone. until we managed to do that we can't disregard it until this pandemic is over. bloomberg opinion columnist -- haslinda: bloomberg opinion columnist david. the carbon managing director

joins us for an exclusive interview next. this is bloomberg. ♪

haslinda: now to an indian company said to challenge china's dominance and electric car battery sector. it is betting big on converting

coal from steel for a car batteries. it is 10% of global demand within 10 years. the man behind the plan is the managing director in he joins us exclusively from mumbai. great to have you with us. such big plans. where do you intend to get the raw material for all of this? >> thank you. there is a lot of growth happening in india. india is expected to go from 120 million to 300 million tons of steel. that will go to a lot of -- being established and a lot of -- haslinda: give us a sense of how this will work in ev batteries. vikram: it is a use of the --

plan and we converted where we have a design where we will align the carbon elements that lead to a better performance in the materials later on. so we -- it and that's when it becomes graphite. so this is where the technology lies of how you configure the carbon elements to get a better feel for it. if you're talking of better range of the charging, all of this is happening at the stage of the development for the precursor material. haslinda: the issue has been the infrastructure for manufacturers. can that be accelerated? what is needed from the government? vikram: india is doing a good job with this.

a lot of adoption has been on the two wheeler and three wheeler. they are expecting the ecosystem and manufacturing to follow that. but we have already entered that space. we are in talks with the government to encourage the raw material space developing in india. so changing those to battery materials is what people encourage and india. rishaad: just picking up on that, are you getting any pushback from the banks? are they reluctant to lend to battery manufacturers? vikram: the subsidies that have been given by the government are most people with manufacturing. they will vocalize this in india

and sourced locally. the government thinks that the ecosystem will follow them and develop in india. so there is a challenge in getting financing for the project because we are putting up factories to sell materials where there is no demand. but we look at ourselves as a global company, and we want it to work for the rest of the world. and when it picks up and manufacturing comes india, we will have full advantage. rishaad: the question i want to get to is, you know it's battery manufacturing capability, which -- to be perfectly frank with you, could you compete with the rest of the world, could you complete -- compete with china? vikram: competing with china and japan, because there is the proposal, we can be competitive. but it's not only a matter of price, it's your gold map and

how you manufacture these materials. and that is where europe plays a big part, because they are looking for responsible sources. so the standard prices been coming down. it's also how you manufacture these and that is what we are doing here. rishaad: looking at the timeline for battery and ev adoption, give us a sense of how you see that, and tell us about this really does take off given adoption and how india has been notoriously slow. vikram: adoption is taking time in india. i think in the next three or four years there will be a gradual increment in adoption,

and then there will be an exponential adoption in india. we have already seen a huge demand here. but these companies that are setting up have sales that are still being imported from china. so as the battery investment grows, i think the company will come in. this is something they are planning for the government. they are looking for local sources. i think three or four years will be a slow adoption and after that will be fine. haslinda: we are seeing a resurgence in virus cases in india, could that put a lid on your factory plans as it goes back to the villages? >> are factories are taking a

lot of precautions. we are waiting for various shares, we have manpower coming. we are following covid guidelines that are factories. we are hoping that we can get through the storm and come out on the other end. rishaad: let's have a look at the four wheeler side of things. how is that working out. are you getting any companies, perhaps that are interested in setting up, and you are about to begin with, of course they would probably end up making their own. what about some of the other oems? vikram: i think nobody is really moving that aggressively to manufacture sales in india. i think it is only something that is putting in some money to set up a battery pack. more of it is on the two wheeler

and three wheeler side in the public transport. you see a lot of requirements coming for electric buses as well. also setting up standard infrastructure. most people get tired of the batteries in their own house. and if you have a car, then you really need that. which is growing, but it's going to take time. vikram: there has been a shortage -- haslinda: there has been a shortage of oxygen that has been requested by the government to cut down the usage of oxygen. has there been a request from the government for you? vikram: the government does have production to help local state governments.

but we see everybody stepping in and it goes 200 times a day to local governments and hospitals. so everybody is chipping in. rishaad: thank you. epsilon carbon managing director joining us from own by. how beijing might use its digital currency as leverage with multinational countries -- companies as leverage. we will look at this digital land. you are with bloomberg. ♪

haslinda: a quick check of the latest business flash headlines. microsoft and discord talks are said to have ended after the company rejected microsoft's $12 billion bid. they focusing on a potential public listing in the future, adding several other companies also try to buy it in recent weeks. it allows gamers to communicate and gain popularity during the pandemic. they are nearing a deal to require a minority stake. it would value the provider order -- provider of phone and television services in almost $3 billion. the deal would reportedly come this week in the private equity firm will continue to own it stake.

upgrades and 80 u.s. communities, including parts of indiana, florida and ohio. hsbc's pivot to asia is said to be brewing discontent among executives in greater china. head of wells, commercial and heads of banking relocate from london to hong kong. the bank expects friction with regional chief, who is said to be unhappy with the calls associated with the relocation. the transfers are said to coincide with an informal search to identify wrong. the key offshore unit of the state backed company said it returned to profit in the first quarter as concerns assist of its ability to repay debt. they say they are operating in meeting targets, and it will focus on planning risks and ensuring liquidity. their asset management dollar bond sink tuesday on the talks that regulators are considering restructuring its offshore

business. elon musk has pushed back on the fatal crash involving the model s, blamed on its autopilot feature. elon musk said initial data shows the autopilot function was not engaged in the car's owner never purchased the full self-driving option. authority said it appeared no one was driving the car before it crashed into a tree and burnt to flames, killing its two occupants. netflix shares plunged and extended trade after it reported dramatically lower first quarter growth. it added just under 4 million new subscribers well below its own forecast of 6 million. it marked the flow of -- and had a stark contrast of the beginning of nastier when netflix added 16 million new customers. covid-19 disrupted production. apple has unveiled its updated

ipad with the faster processor, 5g connectivity and other upgrades. they go on sale april 30 and will start at $799. it is banking on retainer consumer interests returning to offices and schools. apple debuts a new imac and iphone that launched its air pad. a gadget that helps people find physical items like wallets and keys. rishaad: let's have a look at digital money. china could use its digital yuan as leverage is the multinational companies and government that want to access its massive market. the boc is testing the so-called -- let's bring in our chinese government reporter. how exactly can beijing leverage a digital currency in this way? is it also a mechanism to surveilled the population further? >> because china is set to be

the first major economy to roll out this digital currency, people are asking a lot about the implications. so the mix of this, especially what happened with h&m recently is that it could be used as a concern that cuts businesses off. it expressed concern over allegations of forced labor. consumers are using the digital yen and that becomes another mean through which businesses could be cut off in chinese market. this would be a huge escalation from what china has done. it's a massive cost of doing this. it certainly presents a new possibility. haslinda: what's been the response from chinese officials? what are they saying about the

digital yuan? >> they said the motivation behind the digital yuan is for domestic use. although there using this mechanism, officials are saying it's a complex project that involves the sovereignty of other nations over their own currency. so that onset of digital currency is much more long-term and uncertain. we also had the director of the central bank digital currency institute this. the electronic u.n. would have the highest level privacy and that the central bank was -- would know the -- of users and that they could give their information of illegal activity. rishaad: some are calling this a wake-up call, and it's time for them to get into the same space, right? >> these are coming from the u.s. because it is a very highly competitive relationship with china.

the idea that if the u.s. is late to the game than other countries will set the standards and build the infrastructure, that the u.s. may not be a part of or may not agree with. because they have a cautious approach, there has been calls for it to push forward a digital dollar. rishaad: our china governor reporter joining us from beijing. later on on bloomberg, european commissioning executive vp discussing a europe fit for the digital age. that's at 11:00 a.m. in new york. talking with the former governor of the bank of england. now the special and verve -- envoy for climate action. that's coming up. we are looking at this question of the day, as well as how will u.s. climate changes affect and drive assets? that's it for bloomberg markets. we will leave you with hong kong as we see the hsi giving up 1.7%

as we go into that lunch break. we are looking at the moment at the next five stocks up. we have hong kong exchange and the five and 49 on the way down. bloomberg daybreak middle east is next. ♪

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