paul: good morning. we are counting down to asia's major market opens. shery: welcome to daybreak: asia. our top stories this hour. asian stocks look set to follow wall street's book lower. the s&p 500 saw the lowest in five weeks after bloomberg reported president biden may double capital gains taxes.

america rejoins the global fight against climate change. biden makes a pledge to cut emissions. skeptics wonder if that can outlast his time in office. japan could see the strictest lockdowns yet. the final decision could be made in the coming hours. paul: let's take a look at markets right now. new zealand is the only market trading at the moment. higher by a modest amount. futures and australia pointing to a weaker futures last traded for the nikkei pointing a little higher. we have had market australia pmi's services data coming out. 58.6, the read for april. that is also a record high. the pmi composite very strong. 58.8. the market australia pmi manufacturing index, 59.6. a strong set of markets as the

economic recovery continues together strength. shery: let's start with our top story and the bloomberg scoop. sources say president biden will propose doubling the capital gains tax rate for wealthy individuals to pay for a raft of spending that addresses long-standing inequality. kriti gupta joins us with the latest. give us an overview of what this tax could look like. >> the important number you need to know is 43%. that is how much the top 1% of americans could be taxed. what is it exactly? this is a tax you are paying on a profitable trade. this applies to things like art like collectibles, old investment and business deals. this is why it is so important for the big wealthy crowd. it has a lot to do with wall street investments. you are making the big trade, you want to be able to reap as many profits as possible.

this against tax means to meet those profits, you have to pay a higher tax on that. paul: news of this development through markets into reverse. how enduring is that move going to be? kriti: this is a key test for some of the big tech stocks. when you do have a capital gains tax, it does disproportionately affect the market cap stocks. you saw the big tech heavyweights. the new york faang index had dropped by double the amount the s&p 500. the new york faang index dropping by about one point 8%. the s&p 500 down by 1.9%. small caps dropped by 0.3%. it tells you there is this disproportionate effect. the question is, you have several analyst coming out of goldman and our very own abigail doolittle saying in the long term, this does not make that

much of a difference. in the short term, it could create some volatility. shery: given we saw tax receipts take a hit during covid, this chart showing that. does this make sense we are trying to raise taxes in order to pay for some of the expenditure when we have the infrastructure focus american jobs plan coming up? kriti: this does only apply to a small amount of the american population. this is also all contingent on the fact of whether we even see this get past. from a political standpoint, i am not a political reporter but the reason investors are so sensitive is we did also have a series of stimulus bills passed with little resistance. this is why it is spooking some investors. from a political standpoint, we have to see if this can get past. at the earliest, we are looking at a summer timeframe.

paul: bloomberg markets reporter kriti gupta. implications on the bond markets. let's bring in our portfolio manager at matthews asia. what is your interpretation? >> as you have mentioned, the devil is in the details. for the short term, we will continue to see volatility. investors will likely use the current environment to capture gains before the taxes kick in. over the long-term, it should not have too much of an effect in terms of the overall fiscal outlook. it is good to have some plan to pay for the deficit we have had to incur as a result of covid. the last point i will make and i am not a political analyst, we think the likelihood of some type of passage has to be relatively high given that biden has worked with the key principles in congress for not

years but decades. they are working very closely together to get a lot of this improved before the midterm elections. paul: it is another thing for investors to think about. what is the biggest concern right now? a potential capital gains tax increase or in emerging markets, is it a research and of covid? >> i think it is the resurgence of covid. at this point, the u.s. appears to be the only country that is performing up to par. what we worry about is the fact that a lot of countries are seeing historical highs in their own new cases and deaths. this is not only true in latin america but also in asia, in india. it really hampers these country's economic trajectories. in india, we are concerned about a potential downgrade by the rating agencies. while the indian government does

not have -- many indian blue chips companies do. investment grade really helps them with their cost of capital. any type of downgrade could actually increase the cost exactly when they can least afford it. shery: to your point, we have seen those daily cases, daily deaths in india jumping. the biggest one-day jump in coronavirus cases ever. this gtv chart on the bloomberg showing the second wave has become even more lethal than the first. we are seeing this new virus variant with a double mutation around india. what are some of the implications if we do see the credit downgrade of india for the broader market? we have already seen a sense of correction territory. how do investors take cover if this happens in the bond market? >> we just talked about credit implications.

it is also important to highlight the global interest rate and currency implications. with u.s. interest rates likely to scale upwards, it sets somewhat of a benchmark for the rest of the world. even places like india that marches to the beat of its own drum might have to increase interest rates, especially given that inflation has ticked up to 7% before falling to 5%. we are quite worried about india from that perspective. last but not least, the currency. the indian ruby has performed not well over the long run. i think it is important to realize that with the combination of potential credit issues, potential high conflict capital and always the worry about inflation in the background, we could see some volatility of the currency in the near term.

there is our potential dark clouds. shery: we heard warning not only about inflation within india but global inflation given how closely india is related to global supply chains. 12% of the label force in the world is indian. are you concerned about inflationary pressures coming from the troubles within this country? >> there is no doubt there will be pockets of inflationary pressure. we do see supply bottlenecks coming from covid. from that perspective, emerging markets are especially susceptible. what we are not as worried about is inflation in the united states where if you look at core pce, a big component of that is a rinse. those would be the least to come back. talk about a recovery from covid. it puts the u.s. and a relatively better footing than

the rest of emerging markets. overall, we want to make sure a lot of these governments are being judicious in terms of their use of fiscal and how they are managing through this. i think there could continue to be worries down the line. shery: in that sense, china has been a little more careful when it comes to fiscal or monetary policy. which perhaps is one of the reasons we are seeing a little more anxiety across chinese markets. risks about contagion. what do you make of the pboc's latest move and what happens to the credit market? >> i would characterize the current state of the policy in china as being neutral, slightly tightening. it is a positive thing because china can afford to do so. china has many levers. they are using levers

judiciously to make sure certain parts of the economy are not overheating. having said that, we are concerned about the capital markets externally to always be on the watch. there have been some defaults in the past. shery: always good seeing you. thank you. portfolio manager at matthews asia. you can get more on president biden's capital gains tax hike on dayb . it is available on mobile in the bloomberg app. let's get to vonnie quinn with the first word headlines. vonnie: the biden administration is weighing an appeal from progressive democrats to accelerate global access to covid-19 vaccines by subverting a waiver of intellectual property protections. more than 50 countries support the move including india and south africa saying it would save lives. it is opposed by big drugmakers

who called the waiver unnecessary. former president trump blocked the initial proposal last year. singapore and hong kong are said to have called off plans to announce a highly anticipated quarantine free air travel bubble. that is for the second time in five months. no reason was immediately given. sources say a new date has not been immediately set. added -- adding the cancellation was put forward by singapore. doctors seeking to treat alexei navalny are urging the russian opposition leader to end his more than three week long hunger strike after outside specialists were allowed to see him. the doctors cited improved medical care and concerns for his life for the public appeal. question police detained more than 1900 people this week amid nationwide protests demanding proper medical care. the biden administration is trying to dial back optimism

about the revival of iran 2019 -- 2015 nuclear record. they are closer to the beginning of negotiations than the end. the official spoke head of a third round of talks this week. the u.s. and iran are not meeting directly but are negotiating for european, russian and chinese partners. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. paul: still to come, japan eyes and other virus emergency for tokyo as cases continue to search with the olympics months away. resident jode biden -- president joe biden plans to advance the climate fight. this is bloomberg. ♪

>> no nations in -- no nation can solve this problem on their own. >> the height of climate change will be the engine for all global recovery. >> we can build back better from this pandemic by building back greener. >> we need to work on the basis of international law. follow the principle of equity and justice and focus on perspective actions. >> i am delighted to see that the united states is back to work with us in climate politics because there can be no doubt about the world needing your contribution if we want to fulfill our ambitious goal. >> all of us, particularly those who represent the world's largest economies, we have to step up.

shery: foreign leaders speaking about climate change emissions on day one of president biden's climate change summit. for more, we are joined by the head of aipac's research. despite all of these pledges, some environmentalists fearing the world remains geared for a catastrophe. >> it is certainly an expected reaction from environmental groups. we are focused on what are the targets that are required to meet 1.5 degrees. we have to be careful not to make perfect any of the good. what we heard over the course of last night was relatively positive. some level of nations came up with fairly standard standards

-- fairly standard -- the g7 is fully in charge of taking action against climate change. paul: that is one thing to announce a new goal. it is another to get there. are there any encouraging signs of concrete progress on achieving these goals? >> one good thing is if you look over the last decade, over 30 countries around the world including developed economies like the u.s. and japan and developing countries, you can see that gdp growth rate have decoupled from emissions. let the u.s., japan and mexico, they have already reached peak emissions. that is a good sign. it is feasible to do that. we have also heard china talk about eventually reaching peak

emissions by 2030. what was interesting is the president yesterday also mentioned during the plan, that is when china is going to look at peking coal power. the g7, they have already reached peak emissions. if we get china and india and indonesia and brazil, all of those other guys on board to achieve peak emissions by 2030, it starts to look like the goals are within reach. paul: the australian prime minister was criticized from home and abroad for his refusal to set a target. to what degree is domestic politics in australia slowing down any achievement of these goals? >> that criticism is fair.

last night, prime minister morrison stuck to his typical lines of through technology and not taxation. he had a couple of good marketing fingers. in terms of level of ambition, he does not appear to be in a position to be willing to use policy measures. the challenge australia faces is the factor that like what prime minister morrison said, the country is not on track to meet its commitment. the way the current government tries to blame this is not the fundamental measurements that are needed. the opposition to carbon taxation or carbon pricing dates back to the political puzzles that have been going on for over a decade. prime minister morrison's own political party does not appear

to be willing to consider carbon taxation. whether this will change remains to be seen. there is an election likely early next year. we will see whether that election results in a change. shery: thank you so much for those insights. head of aipac research. his views on the climate research summit going on. up next, intel is out with first quarter results. it is not a rosy picture. declines in growth margins signal a loss of market share. this is bloomberg. ♪

paul: shares of intel fell in after hours trading after the

biggest chipmaker reported a decline and a steep drop in profit. ed ludlow joins us with the latest. intel lifted its 2021 sales forecast. tell us about the concerns. ed: sales fell 20% year on year. this was the driver of profit. look at this chart. if you see revenue in that business segment fall by 20% year on year, what we are seeing is that having a substantive impact on margins. falling to 52%. down 5% year on year. in good times, intel enjoys margins of 60%. we are down near to 50%, which is the signs of how the business is doing. the guidance for the 2021 fiscal year improves just slightly. in the near term if you look at

guidance for second quarter, slightly better revenue growth. earnings-per-share comes down a little bit. they are still dealing with the global chip shortage and other supply strengths as well. shery: a bright spots? ed: the pc market. intel saying this could be a record year for pc demand. but i would say to the audience as i remember as a kid, the intel inside ads. it is still a major part of their business. covid has boosted demand for their pcs. they see that demand continuing into the rest of 2021. paul: how about the global shortage of semi conductors? what did intel say about its efforts to take on taiwan? ed: part of what is showing up in the financials is they are supply constrained. they said they could have done even better in the pc segment if

they could have supplied more chips. this is not a quick fix. you had the ceo saying it could take two years to unwind the issues associated with the supply chain. that is not saying the shortage will last two years. the frailties might. intel is trying to muscle in manufacturing chips for third parties on its foundry binges -- foundry business. shery: anything on taking on samsung? ed: it plans to spend $20 billion to bring additional capacity for chips to the united states. taiwan semi conductor dominates the manufacturing of semi conductors. the actual making of the chip. the question was posed to the ceo, will kind of visit do you want to have? do you want to make ultra niche products or do you want to be like tsmc and make whatever the customer brings to you? he says they do just do not

know. part of the issues is some of the biggest customers are starting to design their own chips. they are looking to tsmc to manufacture them for them. intel wants to win the business back both on the ip side and the foundry side. shery: ed ludlow, bloomberg's west coast reporter with the latest on intel. here is a quick check of other is ms. flash headlines. snap reported quarterly revenue and daily active users that beat expectations. more consumers using its app. sales jumped 66%. snapchat reported 280 million daily active users. a 22% jump from the earlier. gladstone is studying billions of businesses that will benefit from the post-covid reopening. the firm invested almost $18

billion targeting hotels, private jets and a travel company. up next, japan's inflation figures will be released. we will break those numbers as they come in. this is bloomberg. ♪ ♪ ) i don't want to look like this anymore. (man) what is happening to my body? (woman) why can't i lose weight? (announcer) you may be suffering from insulin resistance. measure your waist. females measuring more than 35 inches and males measuring more than 40 inches

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paul: we are getting breaking news for you out of japan. cpi numbers for the month of march. the year on year figure coming in line with estimates. a contraction of 2/10 of 1%. these numbers reflecting higher energy prices. drunker sales of air-conditioning and clothing. the decline not as sharp as what we saw in february.

we are seeing the japanese yen right now, 10796 against the greenback. futures trading out of chicago looking at the flat let's -- the flat. it's turned to the virus situation in japan. the prime minister is recommending a state of emergency as virus cases continue to surge purity the olympics now just three months away. the asia governor reporter -- asia government reporter in tokyo. this is the third emergency to be declared in japan. what is different this time? >> each one has been slightly different. this one will be a bit stricter due to concerns over the virus variants spreading quite widely, which may be more infectious. i was soccer has -- osaka has had a record number of cases the

past few days. emergency starts sunday. bars and restaurants that serve alcohol will be set to close. karaoke will be shut. the government is planning to ban spectators from big sporting events like a baseball and soccer matches, which may have some bearing on dealer biggs, which is coming up -- on the olympics, which is coming up in three months. the measure will run until at least may 11, which will cover what we call golden week, which is a series of public holidays, which is usually one of the most popular travel times in japan. shery: what will be the political fallout for the prime minister? >> i think it will be a bit of a double edged sword. on the one hand, polls have consistently shown the public is in favor of stricter measures

than the governor has implemented. on the other hand, nobody is happy when they are under a state of emergency during the beautiful spring weather we are under. also, we have to look back. it was only a month ago he lifted the last emergency. he did say it was his duty to implement policy to avoid the need to declare a third emergency. here we are facing the same situation. shery: we are headed to the tokyo open in less than half an hour. this is what futures look like. wall street following the most in more than a month. we went -- we may see some of the laws extending into the asian session. ek futures also under pressure. we have a strong japanese yen still holding around the six week high and breaching the 108 level. we just had cpi numbers leading

to the upside. still in negative territory. kospi futures looking under pressure. this as we head to the korean open after four weeks of gains. kiwi stocks not doing much at the moment. as the chinese government targets the big giants, one big question is whether valuable proprietary data from alibaba and tencent will be nationalized as part of a new bloomberg special. our chief north asia correspondent takes a closer look at how a national pooling of data could have significant ramifications on user privacy as well as a large platform profitability. >> from a government standpoint, it is not in the interest to see tech companies become smaller and weaker. >> what leverage does jack ma have? >> the leverage is in the strong

talent poll. they are very sophisticated. >> they have the data. which the government probably wants as well. >> i would not disagree with that. >> a year and a half ago, china released a document codifying data as one of the core socialist factors of production. under the idea that you must have a well regulated data market to maintain economic growth. this is the fundamental core operating principle china will be using to regulate big tech over the next 10 years. it is something that has not been inserted into the western lexicon. >> the chinese government is said to be mulling a state backed venture with a platform to see how their combined data is managed and shared. >> there should be an agency in china which serves as champion for the internet sector.

let's try to crackdown on the problem. try to develop the sector. >> pooling data raises a host of privacy issues. pony ma conceded data is extremely, located. there is a fine line he says between ensuring users privacy and opening up data to sharing. others claim to be open to opening their data vaults. >> it is in line with our ability. we have baidu bring, which is also open. we want to share data with partners. >> giving up data could surely upend positions. noncompliance is the bigger risk. for alibaba, getting off with a fine does not meet it is in the clear. that will not pave the way for an ant ipo resurrection.

>> it also depends on how the company reacts to changing regulatory requirements. >> which begs the question, how far will the government go in taking on alibaba and tencent and the others? >> they need the golden egg. they need the innovation and growth. they know if they try to do it with a small these company, it will not work. paul: still a lot of unknowns with china's regulatory crackdown on big tech such as how far authorities myco when it comes -- authorities might go when it comes to reining in champions of technology. >> it is not just alibaba. that is the case study because

of the high profile speech jack ma gave in october. then the subsequent scott pring of the world beating ant group ipo. that triggered a cascade of different measures from the government in fairly quick time over the course of the past four months. alibaba got the $2.8 billion fine. it is not out of the woods yet because it has a long list of rectification to to curb anti-competitive behaviors including stopping the practice of forcing merchants to choose alibaba over competitors. that is going to be holding true for other companies. how far did these measures go in bring in other companies? how about tencent?

that could be the next shoe to fall. there are all the other tech unicorns like bytedance and going show should -- bytedance and kuaishou. they have all been put on notice to curb their religion anti-competitive neighbors. and ant group. what is going to happen to the most profitable part of the business? that is micro lending. the risk falls to the state owned banks who want to leverage off the reach that alibaba's platforms provide. there are many questions. what is happening in china is unique but not necessarily unique to what governments around the world want to achieve. they think these platforms have grown too powerful and ungovernable. in china, it is different. over four months, we saw a fairly quick initial resolution

to the alibaba case with the fine. in china, the big tech companies find it is easier to bend the knee in the west if they are going to take on the big tech companies. they are taking on an effort to lawyer up for the long haul. it is a global situation. we take a look at the china situation in redlines that is going to premiere later this morning friday in hong kong -- actually noon here in hong kong and the other times you see globally. a long process. several months and in the making. shery: we will be watching. stephen engle, our chief north asian correspondent in hong kong. coming up, 25 years as a police officer to look at how all sides can work together to create safer communities. this is bloomberg. ♪

vonnie: this is daybreak: asia. president joe biden pledged to cut u.s. fossil fuel emissions by up to 52% by the end of the decade as he brought world leaders together. biden will aim to zero out over the next 30 years in the most

ambitious climate goal yet. the commitment marks a return to the paris agreement global efforts after the withdrawal by former president trump. >> all of us and particularly those of us who represent the world's largest economies, we have to step up. vonnie: sources tell bloomberg resident biden is in almost doubling the current capital gains tax on wealthy americans to nearly 40%. for those earning $1 million or more coupled with an executive -- an existing tax, that could mean tax liabilities for the rich could be as high as 40.4%. it could reverse a provision that taxes returns on investment is lower than on labor. india marked the biggest single day jump in coronavirus cases with more than 314,002

infections reported. that brings the total caseload to almost 16 million. it is pushing hospitals and crematorium's to the brink. the number of vaccinations lags wealthier nations. the u.s. senate has passed legislation designed to combat hate crimes after attacks against asian americans. the bill will boost resources for addressing hate crimes. it sends a clear message to asian americans violence against them will not be tolerated. house speaker nancy pelosi says the house will back the bill. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: the family of george floyd joins the mourners in -- joined mourners in minneapolis

to good farewell to daunte wright. it has prompted renewed calls for police reform and federal legislation. let's get analysis from the center for policing equity cofounder and the former nypd deputy for inclusion. how much change and progress are you seeing on the ground? >> that is a big question. change is always ongoing. with change comes progress. the larger question, is it enough? does it go far enough, deep enough and is it sustainable? we are seeing change, but a lot of this work has been going on for decades. what we also know, in the wake of another homicide at the hands of police, there is much more to do. shery: when it comes to the work

ahead, where does it have to come from? how much is it a responsibility of the federal government as opposed to states and localities? >> policing in america is local. that is where a lot of the reform work and reimagining work and legislation has already begun. most of that has been underway. it picked up pace after the homicide of mr. floyd. the federal government does have a role. there is an act named after him, which is not completely passed congress yet. there were things that the federal government and do. they can mandate data collection. they can also impact the amount of funding that goes to local law enforcement. they can also invest in local communities who are doing real innovation around, how do you actually respond to public safety in ways that do not

require armed personnel? there are lots of things the federal government can do. a good portion is going to be supported by state and local government but also by the community. a lot of the initiatives we are seeing that are not new and are being expanded is -- a lot of those have been started by community. paul: that is a valid point because that is where policing happens, onto the front line and a face-to-face away. you point to the new york city police department spilled the block program. could that be applied nationally? >> at the time when i was at nypd, those were the initiatives we are talking about. what we have now are things that are incorporating the voice and centering the community. build the block would be a component of that.

most folks across the country are saying it is nice to know. we also have police in spaces they should not be. when we tell about how do we know what police should and should not be doing, the first thing we look at is demand. when we look at demand, we will do an analysis on the 911 system to if you need the police, you dial those three digits. we know from looking at analysis across the country, only two of 5% of the actual 911 calls were related to violent crime. the others are related to social issues, which tells you we are missing the mark on quite a few things. we need to look at the role of policing in community and where other sectors should be stepping in and we should have police stand back. paul: do you feel any sense of optimism things are improving?

i remember many years ago from this side of the world watching the rodney king inspired riots in l.a. and since then, nothing appears to have changed. can you tell me different? >> i can tell you when rodney king happened, i had two or three years on the job. for most of us, this is not the first time you would have seen something like that on camera. we can look at american history and it is well documented what that looks like. my optimism comes from the work that has historically happened and continues today. the optimism is watching folks who are exhausted, who are traumatized, who continue to do this work and push forward. i get my optimism from the community who are trying to get the services they need and they can have a say in the -- and a web safety should look like. it also has to do what the role

of law enforcement should be and what it currently is and this is the time for that. that is where my optimism comes from. shery: being a police officer as you have experienced is a dangerous and difficult work. are you concerned some of the changes that are being advocated right now might deter some people from going into this line of work? >> i think what we have to think about is you always have folks who are going to make these decisions. the fear is something they put secondary. we were always going to have someone who is fearful. the larger conversation is, what is the role of policing and doesn't need to be redefined? the community is telling us, this needs to happen. if you brought in what we mean by public safety, you broaden the opportunities to provide that service that --

you will have folks who are more willingly stepping into the public safety sector and say this is where i want to be. i want to serve. shery: you have any expectations we will see the legislative changes, that there will be political action taken in congress? paul: i hope so. -- >> i hope so. after that, state and local counties are doing the work. they are moving forward to give those type of changes in permitted on the ground. where days experienced by the day-to-day folks living in the communities living throughout the country. -- living in the communities throughout the country. paul: the cofounder for the center for policing equity. thank you for joining us from denver. be sure to tune in to bloomberg radio to hear more from the days

newsmakers. broadcasting live from our studio in hong kong. play morehead. stay with us. ♪

paul: mitsubishi ufj is considering ways to reduce its office space in the americas as

more employees work remotely. the tokyo-based rank expects 25% of its workers will be fully remote after the pandemic had the rest either coming to the office everyday or working from home some of the time. they have 14,000 employees in the americas. alibaba's logistics is launching direct cargo flights. it will launch the first direct flight on sunday. it says it will run seven return flights per week and has plans to open more routs between japan and korea. >> we firmly believe the cargo opportunities will grow even faster than what we imagine. we are exploring other routes to more destinations in the world and increasing frequency and

corresponding groups. we think demand is super rampant. paul: stapp reported quarterly revenue and daily active users that beat expectations. sales jumped 66% for the quarter ending in march. snapchat reported 280 million daily active users. that is a 22% jump from a year earlier. snapchat says new investments will lead to revenue growth. shery: let's get a check of the markets. we are seeing kiwi stocks not doing much. this after we saw the kiwi dollar as the first performer in the g10. risk appetite is sagging giving the rise of inflation. nikkei futures as well. stocks solve the most in for much.

we are seeing pressure for the aussie dollar, which is hanging out around the one week low. we have concerns over u.s. -- over china and australia tensions. we are watching those closely. nikkei futures under pressure at a time when we see a lot of strength for the japanese yen hanging around the six week high past the 108 level against the u.s. dollar. kospi futures pointing higher. we have seen four weeks of gains for korean stocks. take a look at u.s. futures as we are now seeing not a lot of movement. same for the dollar. this after we saw strength for the dollar. only the fourth advance this month. crude pointing higher. we talk to the nyu school of law winston mark about the increasing scrutiny of the tech sector and how that is infecting

-- how that is affecting the environment. japan, south korea and australia coming online next. this is bloomberg. ♪

shery: welcome to daybreak: asia. paul: asia's major markets have opened for trade. our top stories this hour, asian encz marks are set to slip after you ask stocks fell the most i am very -- agent benchmarks are set to slip after u.s. stocks fell the most in five weeks.

india grapples with a resurgence of the coronavirus. experts say a record death toll may not show the full extent of the crisis that is overwhelming the medical system. shery: pressure across asian stocks with japan coming online. communication and energy stocks leading the declines. we are seeing the japanese yen holding steady and past the 108 level. we are seeing it hang around the six week high against the u.s. dollar. we did get some cpi numbers. still in the red. we continue to watch japan pmi numbers in half an hour. it is all about the state of emergency. the third already since the pandemic for japan. take a look at the kospi. down 6/10 of 1%. the kospi has been doing very well.

it has seen four weeks of gains already. we are seeing at now under pressure with the korean yuan also under pressure against the u.s. dollar. the president at the climate summit said south korea is halting stay financing. we are watching that climate story this week. paul: the a sx has been trading for a couple of minutes. a staggered opening. weaker by about a 10th of 1%. anp performing strongly. we did here earlier today anp capital will pursue its private market team merger. that will be complete in the first half of 2022. looking for a ceo in that sector. anp higher by 1.8%. new zealand's showing strength -- new zealand showing strength. crude remaining relatively

strong. west texas, a 61, 79 a barrel year read gold looking flat. shery: for more analysis, let's ring in the asian equity strategist at jp morgan. we have talked about the asian economic recovery and markets doing well. you have this resurgence, new waves of infections. whether it is in japan or india, which has seen the biggest daily jump in clay says -- in cases in the world. >> the covid resurgence as definitely a risk near term. if you look at the indian case situation, which is worrying, we do think the number of cases will start to p by the end of this month or early next month. we have seen many of these waves before he had they peaked

quickly -- before. they peaked quickly. we are expecting a similar situation this time around. vaccination trends have been picking up. they are doing 16 million on a global basis. that is covering a large part of the population. we will start getting these covid related drawdowns. i think we are in a bit of a the premarket situation. shery: we have seen a lot of optimism for japanese markets given third cyclical nature. you are seeing a slower rollout than expected of those vaccines. where do you stand on japan? >> i think japan is definitely a market that does well in value rally. if you look at our recommendations, we have upgraded value. we think value should be the

core anchor for any portfolio in 2021. in that situation, you would expect japan and the market to be exposed to value and cyclical to do relatively well. there will be tactical risks. we do think a japanese market should be able to do well. paul: you previously said china's underperformance was a drag on the region. is that enduring? >> the underperformance of china comes from re-things. the recovery in china mostly happened last year. the recovery we see in the u.s. and global markets this year, china already did that last year. this year, the incremental pace of growth was slowing down. a large part of the slow down was happening because of policy tightening. both on the credit side where we have seen the credit rollover,

which is significant but also in terms of regulatory policy. that has been a drag on some of the internet and related spaces. finally, i would say china as a whole within the region is a more -- is growth exposure rather than some other countries. there is a lot more value exposure. the start up are doing relatively better as value should be outperforming through the course of this year. paul: give us your analysis of the pboc tightening. is that starting to look like a policy mistake you yucca -- mistake to you? >> know, the pboc has been clear in communicating what they are trying to do is reduce the pace of accommodation to manage a stable bull market. this has been the word they are using frequently. from that perspective, it does make sense you want to manage

success and over exuberance in the market. when the economy has already recovered, the global economy doing relatively well, exports are strong in china. having a tightening bias on monetary policy, on credit policy, i think it is the right stance. shery: what about the tech regulatory bias we are seeing? >> again, if you look at the individual pieces of regulation, most of that makes sense. i do you this is a trend we will see other countries follow. many of them are already talking about regulation on the internet space. there is a general realization this was not just about individual cases. it is more a case of, we need to rethink how the regulatory -- functions for industries, which

are different from the industries they are used to regulating. this is a wholesale reassessment of the regulatory process. it started in china. there is a lot more to go in china itself cared other countries will come into the fray as well. you'll start to see more regulations in platforms. paul: jp morgan asian equities strategist. let's get to vonnie quinn furry check of the headlines. vonnie: the biden administration is weighing an appeal from progressive democrats to accelerate global access to covid-19 vaccines by supporting a waiver of property protections. more than 50 countries support the move including india and south africa saying it would save lives. it is opposed by big drugmakers. former president donald trump walked the proposal last year. sources tell bloomberg president biden may almost double the

capital gains tax on wealthy americans to 40%. for those earning $1 million or more coupled with an existing tax on investment income, federal tax liabilities for the rich could be as high as 43.4%. the biden administration is trying to dial back optimism about the revival of the 2015 nuclear record. one official says the two sides still disagree on several issues. the official who spoke ahead of the third round of talks in vienna says the u.s. and iran are not meeting directly but are negotiating through european, russian and chinese partners. doctors seeking to treat alexei navalny are urging the russian opposition leader to end his more than three week long hunger strike.

in an open letter, the doctors cited improved medical care and concerns for his life. russian police detained more than 1900 people this week amid nationwide protests demanding proper medical care. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. paul: let's check in on some of the movers in the early going in the asian. amp performing very strongly. higher by 3.4 and -- by 3.1%. it is going to pursue its private markets demerger. that should be complete in the first half of 2022. one of the worst performers on the aztecs right now. delphi 9.5%. the online retailers says the third-quarter gross sales grew

by over 37% but still falling after his third-quarter updates. nidec also declining by 7% after its forecast for the full year missed estimates. shery: still ahead, analysis of the biden leaded climate summit -- biden led climate summit. plus, the push to join the wall street elite. details ahead. this is bloomberg. ♪

shery: stressed the urgent need for urgent collaboration to fight climate change. at president biden's earth day summit, another leader announced major goals for curbing emissions. we are joined by the head of aipac research.

what did -- let's start with china. what did president xi jinping have to say about their climate goals? >> the president primarily reiterated goals he has already made. the economies have to do more for emission reduction as well as provide financing support for developing economies for emission reduction. the one new thing he did mention was china's plans to actually achieve coal power generation within the 15 year time. previously, china had said it would target peak emissions by 2030. what that suggests is china is planning to achieve that a little earlier.

we do expect china will be able to achieve peak emissions before 2030. paul: let's turn to india. prime minister modi announcing an india-u.s. clean energy partnership. what does this entail and does it meet or fall short of india's goals? >> that is a good question. it remains to be seen what details come out. prime minister modi reiterated his personal 450 gigawatts of renewable goal by 2030 for india. he listed a bunch of initiatives india has previously launched. this partnership could be interesting. there was another partnership announced between the u.s. and japan. the prime minister was talking about the partnership. he specifically mentioned japan and the u.s. working together in

the indo pacific region. there seems to be a link to the geopolitical alignments between the quads and the japan, u.s. and australia, to support more economic development within the indo pacific vis-a-vis the encroachments china has made to the region. actual concrete measures under the new partnership, that remains to be seen. shery: tell us a little more about the japanese prime minister's goals. he did raise his target for japan, right? >> yes. he actually announced it just before the summit got started. japan increased its target. previously, it was 26% emission reduction by 2030. the new target is 46%. the prime minister has said they will try to strive for 50%. it is a fairly sensible target

from the perspective of putting japan on a pathway and in line with its net zero emissions goals by 2050. what is now required and measures to achieve this target in the case of japan when it compares to the u.s., emissions from the power sectors are relatively high. this is an area they will have to do a lot more work. they have to do much more work beyond the power sector including de-carbonized in the transport sector as well as the industry. the only have nine years left. the one advantage the prime minister has over president biden and the political environment, his ability to pass legislation is much better. paul: head of aipac research. thank you for joining us. we spoke earlier to australia's former prime minister and asia society policy institutes

kevin rose. -- kevin rudd appeared >> it will be skepticism around some of these minutes. agreements which will occur at the conference of the u.n. framework convention of glasgow later this year, the policy mechanisms take effect. we then measure the extent to which states are honoring their commitments are not. if they are not, there is enormous international and financial pressure brought to bear on those countries not lifting their part of the game properly. paul: is one of the key problems domestic politics? we saw it in the united states under president trump and now the u.s. coming back onto the global stage. 14 years ago, you described climate change as a great moral

challenge and we have had 14 years of domestic political bickering in australia. how does this problem get overcome? >> in many countries, there is a lot of political bickering. most parties have -- have got the science, have got the mathematics. in australia, despite ferocious opposition by conservative coalition made up of the current government in australia and then the current -- the conservative opposition backed up by the hard right anti-climate change agenda murdoch media, we still were able to register real achievement. in australia's case, registering a renewable energy target in 2009 for 20% of australian electricity supply to be renewables by 2020. we have reese -- we have succeeded in that target in

reality could what is important with this summit is america is back. had joe biden not been elected on a platform of america achieving carbon neutrality by 2015, this summit would not have occurred. we would not have had the firing of the starter's gun for other countries. the national policy, corporate and technology capacities of countries would not be mobilized to the extent they need to be. shery: how much do you expect the summit to reset the tone between all of these nations? we know the growing tensions between the u.s. and china, between china and australia as well. >> one of the interesting and important things for us to notice, despite the appalling state of the geopolitical and foreign policy and economic

policy relationship and in technology between washington and beijing right now, so far, the climate collaboration lane is open. secretary kerry visited successfully shanghai last week. he had a series of meetings with his chinese counterparts. secondly, xi jinping could have elected not to attend resident biden summit. he did so. -- president biden's summit. he did so. there is a recognition the national interest demand they collaborate on this. climate knows no boundaries. if the two largest emitters do not act together, whatever they may think of each other geopolitically, it damages their deep underlying national and economic interests. shery: up next, a third of all

the world's new virus cases are in australia. her in india. -- are in india. this is bloomberg. ♪

paul: a third of all the worlds covid cases are now in india. southeast asian nations are bracing for a potential spike in virus numbers. give us a sense of the situation in india right now. >> you are really seeing a much more ferocious second wave in india. they were relatively unscathed until they had a wide outbreak from their first wave. it sounds to be a more vera lynn

wave we are seeing -- a more vera lent wave we are seeing in india. spiking to a record yesterday. getting that record, global record for cases. over 300,000 in single day. definitely sparking a lot of concern particularly as we see other parts of the world, particularly the west, starting to emerge thanks to the first round of vaccines. raising a lot of questions about what this out-of-control outbreak in india will mean for the rest of the world. shery: the holiday is coming up. how are southeast asian nations preparing for this? >> they are among some of the worst hit in our region when you think about how the virus is being eliminated in places like china to new zealand. it is quite a high risk factor

for places like indonesia, which has not been able to contain its outbreak. malaysia, where they are seeing a lot of spikes on a daily basis. they are limiting travel, similar to what they did with ramadan last year. what is quite concerning is these places are among some of the slowest vaccinators. they're having trouble getting supplies. they are slower in endorsing vaccines. it could be a bit of a perfect storm if people do ignore that advice and restrictions and travel for the festival anyway. shery: bloomberg's asia managing editor. here's a quick check of the latest business flash headlines. sources say citigroup could fetch up to $6 billion from its banking asset sale. the bank is set to be selling retail banking operations in 13

markets across the asian pacific, europe and the middle east to be focused on full wealth hubs. interest mainly from local players. ubs introduced a new bonus for jr. bankers and shifted incentive payments to august. the first lender shifted year end reviews to analysts to the summer and reminded staff about the existence of a wellness our. -- wellness hour. mitsubishi uft is considering ways to reduce its office space any the americas as more workers work remotely. the rest either coming to the office every day or working from home some of the time. they have 14,000 employees in

the americas. he coming up, more on the fallout from the archegos fiasco. this is bloomberg. ♪

shery: an alert on the bloomberg right now. the japan composite numbers, pmi at 50.2, turning positive into expansionary territory since january 2020. the services pmi in contractionary territory, 48.3. it has been at the below 50 level since november 2019. we are still awaiting the

manufacturer numbers. the composite is in expansionary territory. this at a time when we continue to see the expansion of infections across japan. we are waiting for the state of emergency declaration, the third since the pandemic. the composite entering expansionary territory, paul. paul: let's look at how markets are tracking across the asian pacific. we have the ek off by 1%. we had news from a company that makes small motors for optical drives, that stock off, a shade under 8%. australia, flat. an online retailer with

disappointing third-quarter sales. we are seeing weakness across other markets. the kospi off 0.4%. new zealand is in negative territory. shery: nomura, japan's biggest broker, the fund has lost an estimated $2 billion. it also appears to have done some damage to its key goals. su keenan joins us with the latest. it is no secret nomura has ambitions and has pushed to be one of the big boys on wall street. su: observers say that goal is harder to reach with a big black eye from archegos. one said nomura has yet to be able to join the wall street club. even those with well established financial funds in europe have not had much success in the u.s.. nomura likely trails only credit suisse among banks in posting

the biggest loss from the spectacular explosion of archegos in late march. the family office saw almost $20 billion in value disappear in two days. the setback adds to a list of stumbles as it takes on global risk offset, slower growth at home. it has long sought to compete with larger and more agile u.s. rivals. that goal tarnished heavily by what happened with archegos. paul? paul: nomura is not the only japanese firm taking hits from archegos. how wide is the blast radius? su: nomura is joined by mitsubishi, mizuho, in facing losses linked to archegos, but nomura took the biggest hit.

one had a lost of $270 million, mizuho, $90 million. even with losses, the japanese firms are likely to resist the siren call of wall street. the risk of the japanese firms outside their comfort zone. as one analyst said, the archegos's mass signals nomura is repeating past mistakesn taking on too much risk in a single market. back to you. paul: bloomberg's su keenan in new york. we will take a look at the regulatory environment for tech companies in china with the nyu school of law professor winston ma. this is bloomberg. ♪

>> this is daybreak asia. i am vonnie quinn with the first word headlines. president biden wants to cut fossil fuel emissions by 55% by the end of the decade as he brought world leaders together for a two-day summit on climate change. biden will include zero emissions in the next 30 years in the most ambitious climate goal yet i an american leader. it marks a return to the paris agreement after four years of

withdrawal. pres. biden: no nation can solve this problem on our own. all of us, particularly those who represent the world's largest economies, we have to step up. vonnie: india marks the world's biggest single day jump in coronavirus cases with over 314,000 cases reported, bringing the total to over 60 million. it is bringing hospitals and crematorium's to the brink. several countries announced restrictions on travelers from india, including singapore, australia, the u.k. singapore and hong kong have plans for a highly anticipated quarantine-free air travel bubble. sources say a new date has not been set.

the two countries have been trying to resolve bubble plans after the november start was pushed back due to a virus flareup in hong kong. in a year that saw global airline travel grind to a halt, china's airport in quando -- guangzhou is now the busiest. they moved up from 11th place. china was home to seven of the 10 busiest airport hubs last year. intel says 70 people working for a construction contractor added to its plant in ireland have contracted covid-19. they learned about the outbreak this last weekend and say the site remains operational with protocols.

they have plans to remain competitive amid a global chip shortage. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn, this is bloomberg. shery: as the chinese government targets tech giants in an antitrust crackdown, they are wondering if a valuable proprietary data will be nationalized. it sparked "redlines: china and big tech." we take a close look at how i national pooling of data could have significant ramifications on user privacy as well as the large platform's profitability. >> from a government standpoint, it is not in their interest to see tech companies become smaller and weaker. >> what leverage does jack ma and pony ma have?

they have the data which the government wants, as well. >> i would not disagree with that. >> a year and a half ago china released a document codifying data as one of the core factors of production, under the idea you must have a well regulated data market to maintain growth. this is the core operating principle china will be using to regulate big tech over the next 10 years. it has not entered into the western lexicon. >> the chinese government is mulling a state-backed venture with a large platform to oversee how their combined data is managed and shared. >> it would not solve the problem. there should be an agency in china that serves as a champion for the internet sector.

in other words, not try to crack down on the problem, try to develop the sector. >> but pooling data raises a host of privacy issues. pony ma conceded data is complicated. it is a fine line between insuring privacy and opening updated to sharing. baidu claims to be open to opening up their data vault. >> we run a lot of open platforms for ai in general. baidu is also we like openness. we want to share data with partners. reporter: giving up data could upend, but noncompliance is the bigger risk. for alibaba, getting off with a fine does not mean it is in the clear. that alone will not pave the way for an ant ipo resurrection.

>> it depends on the regulatory framework and how the company reacts to the changing environment. reporter: which begs the question, how far will the government go in taking on alibaba, tencent and the others? >> they need the golden egg. they need the innovation, the growth. they know if they do this from state companies it is not going to work. paul: china's recent $2.8 billion fine against alibaba set an example for tech giants and potentially its unicorns are the regulatory environment may affect the rise of aspiring players. nyu school of law adjunct professor, winston ma, thank you for joining us.

can you outline how the regulatory environment might be changing access to china's unicorns as well? winston: november was the breaking point, the blockbuster ipo of the fintech arm of alibaba. its suspension was the tipping point that urged regulators in china to step up their supervision of the major internet apples. it started with fintech regulations, but soon after, we saw antitrust actions taken on major internet platforms, including major platform economy companies like alibaba, tencent, baidu. now in the coming months we expect china's personal

information protection law will be effective because the draft is public. altogether, we see for the china tech sector, we are going to a new decade of tech regulation. paul: if you put these factors together, does it spell a correction for chinese tech stocks? winston: certainly there will be pressure on the valuation of the tech companies. the new regulatory framework means more scrutiny and a potential change to the business models of chinese internet giants. if you look at and financial, because of regulation, it is now officially a financial company, not a tech company. with regulations, ant cannot grow as aggressively as before.

i would emphasize the impact of the regulatory framework will be felt broadly by all cyber barons in various sectors. we are going to see pressure across the board. antitrust law has been there for months. the action on alibaba, the record fine, was history. the market already took action for that. however, for the personal data protection law, it is not effective yet and it will take a few months for people to realize to what extent it will be enforced. therefore, it is still too early to evaluate the impact of the personal data law on the chinese tech companies. especially the platform economy companies that collect huge amounts of data from hundreds of millions of users.

shery: given what we know at this point, who are you expecting to be the hardest hit? when we saw the record fine from alibaba -- for alibaba, it could have been worse. alibaba can cover these costs. winston: we can look at the top 10 most used apps in china, essentially, three groups. one, there is a social network represented by tencent, wechat. that is the first group. the second, e-commerce. the third group, which is up-and-coming, the short form video platforms. so far, the antitrust actions have been focused on the first two groups.

to me, the short form entertainment platforms are up and coming, but accumulating users very quickly. they may become the next group subject to antitrust actions. shery: do they have as much as an arsenal to endure this, the crackdown? winston: for lots of these companies, they are cash rich. they represent the every day services of nearly one billion users. they have enough cash flow to pay for the fines, even record fines. however, more serious than the long-term impact is their future growth rate, because they cannot grow as aggressively as before. paul: professor, does it seem

rich that china is introducing these personal information protection laws when it conducts such rampant surveillance on its own citizens? is there anything these tech companies can do to point this out? winston: interesting you ask that question. this year, in addition to the personal data protection law, there will be another law to come out, which is called the data security law. the data security law offers more protection to government entities and to what extent they can have access to data. i agree with you, for lawmakers, it will be a difficult balancing act to balance the interests of three major groups, the individuals, the enterprises, and the government. hopefully, they can handle that in these two new laws. shery: how far do you expect

that data protection law to go? winston: i think pretty serious. china's consumer sensitivity to data is much higher than people thought. two reasons. one, years ago, the users did not have enough knowledge about personal data. the perception of chinese users would trade convenience for personal privacy was the past. more importantly, china's users recognize data has value, represented by big data killing, which means the platforms would charge people differently, based on personal data. the practice of price discrimination. people like you and i order

something from our iphone, we may get a more expensive offering than people who use a cheaper phone. chinese users are educated that data has value and they will push for their own protection. shery: professor ma, it was good to see you again, thank you. nyu professor and author of "the hunt for uni" win ma. for more, watch "redlines: china and big tech." you can catch it at 8:00 p.m. new york. you can also watch it online at bloomberg.com. next, we look at china's insatiable demand for luxury goods and how it is forming a dedicated supply chain. also, tune in to bloomberg radio to get in-depth analysis from the daybreak team, broadcasting live from our studio in hong kong.

you can listen at bloombergradio.com. ♪

shery: here is a quick check of the latest business flash headlines. china's biggest insurer by market value said growth in the fourth quarter had investment in, jump as investors emerge from the deaths of the pandemic.

ping reported net income rose to $4.2 billion and profit grew 9%. it is likely operations remain under pressure overpressure to boost agent productivity. vetting businesses that will benefit from a post-covid recovery. the film invested billions in hotels, private jets, a travel company. they say consumers are returning to the travel and entertainment sectors. it recorded its assets have hit a record of nearly $649 billion. japanese carmaker bridgestone it said it will support the tokyo olympic and paralympic games as a key sponsor, as long as the safety of participants is secured. in an interview the ceo said he will refrain from holding a big marketing campaign, and will not

be inviting overseas guests. snap reported quarterly revenue and daily users that raised expectations lifted by digital advertising and more consumers using snapchat. $770 million for the quarter ending in march. snapchat reported 280 million daily active users, a 22 per jump -- 22% jump from a year earlier. it will lead to growth of more than 50% for years. intel shares fell in after reporting a 20% drop in sales center sales. rivals and customers including amazon design their own components. intel's pc business performed

better with profits up on strong demands for laptops. paul: let's get a check on how we are tracking after the first hour of trade in the asia-pacific. a mixed picture. the nikkei weaker by 0.8% and the kospi by 0.3%. in australia, unchanged. similar story in new zealand. alibaba launching direct cargo flights between singapore and an island. let's get more from our reporter. why do they want to expand in hainan? reporter: it has proven to be a year positive for hainan because chinese shoppers used to spend collectively more than $110 billion all over the world and

have been trapped in china over a year. it is a duty-free destination where people can go to enjoy beaches and shopping malls that can offer cheaper prices compared to others. it was popular last year and the logistics of alibaba, they saw an opportunity. shery: will there be more routes opening? reporter: yes, singapore hainan is just the first step. they are looking at singapore, japan, south korea. longer-term, they are used -- looking at european routes when the pandemic is more under control. shery: our bloomberg consumer reporter with of the latest on that singapore hainan route. our market coverage continues as we look ahead to the trade in

hong kong, shanghai, shenzhen. this is bloomberg. ♪

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rishaad: happy friday. it's 9:00 a.m. in beijing and shanghai -- tom: happy friday. it's 9:00 a.m. in mangy and shanghai. david: we are counting down to the open, the trades in the last session of the week. bloomberg learns president biden