>> good morning, i am paul allen in sydney. we are counting down to asia's major market open. shery: welcome to "bloomberg daybreak: asia." new zealand markets are closed but we await the open of china, japan and south korea in an hour. let's go to sophie kamaruddin in hong kong. sophie: this morning, asian stocks are set for big start as

investors see cracks in that reflation trade. last week energy and industrials lagged with the worst five day stretch for asian equities in a month. today earnings on tap across the region including hitachi metals, as industrial nettles have rallied to multiyear highs infrastructure and a shift to green spending providing support. the aussie dollar has been in favor with the commodity like currency trading 77 this morning, with upside risk for the company -- the currency with global growth persisting. bitcoin prices this monday morning in asia come up prices holding losses below $50,000 after the worst week in two months or the digital currency with president biden's proposed capital gains tax adding to the right, -- we are watching crypto related plays in asia this monday. also in south korea the

authorities seized crypto assets -- assets from ton -- hundreds of the liquid taxpayers. shery: the coronavirus crisis worsening with millions of cases in the past three days in india and medical facilities in the capitol, facing a severe oxygen shortage. the u.s. and european union pledging aid and vaccines. the u.s. has been under criticism for not doing more, what have you heard, ross? >> one thing that happened today was the u.s. national security advisor jack sullivan had a call this counterpart. the u.s. will send raw material to indy out for india to make its own vaccines. there is no plan we know of to specifically donate vaccines but that may come, down the line. the u.s. is also offering

financing and other help, for india to ramp up to domestic production of vaccines. india is already a vaccine producer, and a huge pharmaceutical manufacturer. but it is definitely in need of more vaccines right now so the u.s. is stepping up that effort. and the u.k. is donating airline containers full of supplies including ventilators at a time when its own coronavirus cases have trailed off. france is also helping. the u.s. has 40 million doses of the astrazeneca vaccine that is not approved for use in the u.s. so you may see in the next few days why don't we offer some of that, those vaccines and help with the production of new vaccine? paul: ros, the situation dire

in india but elsewhere sign things are getting back to normal, the new york times reporting that you will allow vaccinated tourists to visit this summer. what is the story? ros: that is a huge story when you consider something like 40% of the u.s. has had at least one dose of the vaccine, 22% sorry, 222 million doses of ministered in the u.s., a lot of americans who could conceivably want to travel to europe, and break out of lockdowns. we do not have confirmation of that from the u.s. side and we will be looking for that in the next few days, but the interview with date ec's ursula von der leyen, good news, for the hospitality and travel industry. it is really a boon tonight and

she talked about how the three vaccines in use in the u.s. have also been approved for use in the eu. so there is a glide path to getting back to normal. as we talked about in the prior hour, hong kong and singapore also working on a bilateral travel bubble. week by week, as cases go down, in many places, even as they are high elsewhere, we are seeing signs of normality. paul: deputy managing editor ross crassly. -- ros krasny. vonnie: twitter removed are restricted 50 posts in the past month at the reflect -- request of the indian government. the ending express say the tweets included criticism of government handling of the pandemic and videos of an attack by maoist insurgents. in a statement twitter says it reviews all valid legal requests.

bloomberg sources say hong kong and singapore may soon announce, perhaps as soon as monday, a long-awaited travel bubble may begin may 26. travel between the two financial hubs would be quarantined free, if no further virus outbreaks are reported in either city. earlier plans for a bubble were suspended, and the announcement for this new plan was post on from last week. elect's -- the prime minister of a rack is blaming negligent health officials for a fire that killed people in a baghdad hospital. more than 100 others were injured. the cabinet suspended key officials including the health minister -- the fire comes as a rack grapples with it -- as iraq grapples with a severe second virus wave. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. paul: at last week's global

conference, president biden put tackling climate change at the center of policy and our next guest is ahead of that shift. he spent 2020 visiting 47 countries on the hunt for renewable energy products for fortescue future industries. part of the solution is green hydrogen. haslinda amin is standing by with australia's richest man. haslinda: someone that we know well, andrew forrest, fortescue metals group chairman joins us. good to have you with us. crisscrossing 47 countries, in times of covid is huge, what is the plan, really? >> the plan was, to get in front of the curve. we knew the world had to, not that it wanted to, but it had to go grain. -- green. and that the process must start,

so to kick it into gear we went to all of the sites across our planet, where renewable energy can be generated, and huge scale. had to use that renewable energy to create green hydrogen electricity to start pushing the world and government policymakers to go green. we can say look, no longer do you have an excuse that you do not have green energy, now you do. haslinda: where are you headed from here? presumably india? is it out of the question? you have done 47 countries and signed deals with seven governments, where are you headed? >> we are currently speaking to a really large customer base. we are here in japan and we will be going through asia. we will be going up into europe. then we will also be speaking to

our big supplier bezos, africa, central -- big supplier bases, africa, central asia. let's not forget latin america, where we also see large operations emerge. there is a global pandemic. but climate change is not waiting for anyone. and not covid-19. we need to get in front of that curve so we are continuing to push ahead. haslinda: the big bet is on green hydrogen, andrew, whose technology is still at a nascent stage. you see green hydrogen as a silver bullet for a net zero world? >> look, absolutely do. the world will have a difficult third, 30 to 40% which is not going to be able to solve with electrification. gray hydrogen or blue hydrogen

or fossil fuels, they must all see their sunset. they must all come to the end of their day. because no matter which color they call it, if it is not green it is going to emit carbon and it is going to cause bubble warming. so fortescue's mission, what we see, all the executives, mission in light now, is to persuade that world and use ourselves as an example. not only that we can consume green hydrogen. we are converting trains not next decade but next month. we are converting talks not next decade but next month. -- tracks. -- trucks. next month. our ships and trials that you can use green hydrogen and green ammonia. at the same time we are saying it is a little light the people of the world need to know is a lie, that there is not green hydrogen. green hydrogen, we are getting the technology. we are getting the transport right.

we are certainly building up the abundance, so the world, like japan, south korea, north america, can rely on green hydrogen, as a way to power all the difficult part of the world which you cannot turn green with electrification. one third to 40% of the carbon budget must come from another source of fuel, which emits no carbon, no pollution. that is green hydrogen. haslinda: the cost of producing green hydrogen is still high and storage is a key part of that puzzle, how quickly do you think technology will escalate and how quickly do you think scale can be reached? >> ok, let me give you an example. at fortescue i invested $4 billion initially and got to operating costs around $55 per ton to create iron ore to ship to the world. then we started this flywheel of

improvement, where we built the supply, built the demand, lowered costs, brought a new technology from all over the world. not one hero technology, not one hero person, but thousands of people and thousands of different improvements in technologies. right now those operating costs are not mid-50's, there less than $14 per ton. we brought it down by nearly four had a percent. -- 400%. so we will be pushing for the same track record with read hydrogen, green electricity. you saw happen insular and we can make it happen in hydrogen. but it -- you saw it happen in seller and we can make it happen in hydrogen. the battle will be uphill and tough but this is about a we do not have a choice about. it is a battle the world must win. haslinda: china has many hydrogen projects, as early as last week you said you are interested in working with china

and what opportunities do you see their? -- there? >> there are very large wind and solar projects china is already pursuing. they know that there 2060 target is both toast, like the world battle against global warming will be toast, if we wait until 2060. so they are moving now. when we travel the world, we run into our friends from china everywhere. china is moving quickly. and they are good, solid, from the competition. but we are seeing, china is actually turning green as fast as i possibly can. north america, under the biden administration, is really showing fabulous leadership. and the administration here, japan, leading by example. haslinda: andrew, given who you

are in talks with four deals in china? -- for deals in china? >> author japan, europe, asia, china, we are speaking to all the big players and convincing them. no longer is there an excuse that yes we would love to use rain hydrogen but have to use fossil fuel or call or gray hydrogen or blue hydrogen, which is serious carbon emitting fuels. they say we have to do that, andrew, because we do not have green hydrogen. i am saying no. the time has come. green hydrogen is going to have its day. and the world will never go back to the rubbish bin. once we climb out of the rubbish bin, that's it. this is a multi generational change. this is a forever change. we are saying to the world, the time to get out of the rubbish bin, to get out of the carbon toilet, is now. green hydrogen is your only answer to make that happen. let's get on board. let's back players who are

committed to green hydrogen. let's not take shortcuts. let's not lie to the public or consumers with fossil fuels or gray or blue, let's go straight to what the solution is, zero carbon. green hydrogen. haslinda: andrew, speaking of china, we are seeing escalating tensions between china and australia. what you make of the latest salvo from the prime minister himself? >> look, the prime minister can speak for the prime minister. i can speak for industry. what i say is that, i see a national interest and china's national interests, and most important, humankind's national interest, is to put down the rhetoric. let's work together. we are not going to solve the plasticfication, the ruination

of our oceans. we are not going to solve climate change and the huge issues in the world by bickering amongst countries. i ask my friends in china, australia, north america, japan, europe, to say, put not national interest -because what you are saying is your political interest -at the heart of your conversation. put humanity's interest at the heart of your conversation. then you will find peaceful ways to work out the things you have in common as nations. let's get after human rights. let's get after huge environmental challenges, like plastics and like global warming. these two are inextricably linked. humankind cannot exist if they continue to exist. that is the bigger problem. haslinda: andrew, given escalating tensions, do you see perhaps we are a step closer

toward china imposing some kind of curbs on iron ore export from australia to china? what is your take on the? -- on that? >> my take on that is, i would like all sides to calm down. i would like everyone to say, let's act not in the national interest of the next election or a few careers and call it the national interest, in china or austria or north america or that dreadful europe which we have -- that dreadful era, we have been through. let's collaborate as nations. let's say bigger than bickering within the nations and others, let us of course protect human rights. i have stood for that all my life. we have also to go after these huge threats coming out of, bigger than we have ever considered. i'm talking bigger than world war ii or world war i. plastics in our oceans, and the warming of our planet, will cause way more deaths by a

multiple, that any of those wars. so, let's take a breather, and say, let's act in our children's interest. in the interest of the born and unborn grandchildren's interest. let us look with vision. haslinda: reports suggest perhaps the prime minister scott morrison has approached you to help ease those tensions. can you shed light on that? >> now, look, i am suggesting that the prime minister of australia and the president of china, the president of the united states, can speak for themselves. as a citizen, one citizen, of nearly a billion people, i am asking all our national leaders, to consider, when you walk out of the boardroom or out of the congress or out of the parliament, when you go and hug your children, when you hug your grandchildren, are you acting in

their interest? while we bicker of the oceans are getting destroyed with plastic. and the environment is getting destroyed by global warming. green hydrogen is the solution. we need to collectively as a planet and group of nations, go for green hydrogen. let us not betray our people again. let us go for green energy. we now have the solution. let us use. -- let's use -- let's use it. haslinda: iron or prices at 11 years highs with a state elevated? -- will they state elevated? >> iron ore has a strong future, particularly if we can make it without carbon or coal. i'm not going to get into the short-term guessing game of if prices will go up or down. but i say this. steel and iron ore and concrete and all of these issues must go

green. we are working right now on a global mechanism to turn iron ore from being carbon dirty and still for being carbon dirty, with new technology, which will see beautiful iron and bid full steel made without any omissions to the environment. let's pursue these technologies and make this happen. haslinda: andrew, thank you for your time, joining us from tokyo. shery: thank you, haslinda, with that exclusive conversation. still ahead, huarong says it's earnings results will not make the april 30 deadline, frank investors'-- fraying investors'nerves. this is bloomberg. ♪

shery: the chinese distressed debt manager, huarong, says it's earnings will be delayed again. mounting worries over results from the firm. tom, we know the last time this happened so why is huarong delaying results again? tom: they put out a statement of the weekend saying their auditors needed more time again to review financial transaction. they did not give details as to what the transaction was are the timeframe for how and when their auditors would be completing this review. you are right to say it is similar to the rationale and logic and reasoning they used when they missed the preliminary earnings deadline march 31. that frayed investors' nerves and led to two or three weeks selloff. it also led to ratings agencies

like fitch and moody's to look at potential downgrade. this is china's biggest bad debt, bad loan manager. we know in the first half of 2020, it's earnings fell 90%. we are waiting for those fall 2020 earnings. we do not have that report yet and they're missing the deadline again. ironically, in the last week or so, some of the anxiety among dollar bondholders eased because of reports they were lining up enough cash, huarong, at least to me that obligations for april. but this news over the weekend, the statement they would not release earnings for the deadline will likely inject uncertainty among investors here. paul: tom, what her options chinese regulators are looking at for huarong? tom: there are number of plans they are weighing up. one the company proposed,

sweeping overhaul of its business, which would lead to the spinning off of non-core, nonprofitable parts of the business, to avoid a debt restructuring. the other thing we know is being looked at is, pboc riding to the rescue and onboarding $15 billion worth of huarong' debt to help clean up its balance sheet and we know the finance ministry, the biggest shareholder huarong in, is looking to move its stake to a unit of the sovereign wealth fund. but there is urgency because you are looking at an asset manager that has debt obligations of $42 billion u.s. in total, $17 billion due by the end of 2022. bloomberg economics putting out a note this morning saying, whatever the solution, it is likely that at least those dollar bondholders will have to

take on some of the cost as well, whatever solution they come to. paul: china markets coanchor tom mackenzie in beijing. a quick check of the latest business flash headlines. chinese brokerage cicc is going on in overseas hiring spree which could see assets jump tenfold in the decade, the investment bank looking for m&a targets among asia focused firms including stock and hedge funds and wealth managers. cicc is looking outside china's $15 trillion asset management with rivals like blackrock seen gaining a 50% share in the next 10 years. credit suisse bank reportedly believed greensill capital was a once in a generation company that could've been were $30 billion. according to the guardian, presentation to the board in 2020 said the finance firm with the exponential growth triggering a nine figure windfall for the advisor and

former u.k. prime minister david cameron. greensill collapsed a year after the presentation. icici fourth-quarter profit search to $585 million thanks to strong earnings from its lending business, even as it set aside less money for bad loan provisions. the banks domestic loans grew 18%, sharply higher than the banking sector average, durham by an increase in retail books, especially mortgage -- driven by an increase in retail, especially mortgages. china's economy continuing to boom after record growth in the first quarter. we discussed that in a moment. -- we will discuss that in a moment. this is bloomberg. ♪

(announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you to maintain comfortable, correct form. that means better results in less time. you can do an uncomfortable, old-fashioned crunch or an aerotrainer super crunch. turn regular planks into turbo planks without getting down on the floor. and there are over 20 exercises to choose from. incredible for improving flexibility and perfect for enhancing yoga and pilates. and safe for all fitness levels. get gym results at home

in just 10 minutes a day. no expensive machines, no expensive memberships. get off the floor with aerotrainer. go to aerotrainer.com to get yours now.

>> i am vonnie quinn with the first word headlines. the biggest vaccination campaign is well underway, with more than one billion doses administered across 172 countries. that is enough to fully vaccinate 6.7% of the global vaccination. in the u.s., 229 million doses cap and given so far. the latest rate globally is roughly 19.2 million doses a day. the u.s. is the latest nation pledging aid to india to help spend -- the biden

administration says it is sending vaccine materials and will step up financing support for production. it may also offer unused astrazeneca doses. india reported one million new doses in the past three days, and the prime minister is telling residents to get vaccinated. thai officials have ordered businesses considered at high risk for covid infections to shut down. the city is racing to contain its biggest outbreak since the start of the pandemic. cinemas, gyms and convention centers will be closed for two weeks, while malls and convenience stores will operate with limited hours. more than half of thailand's over 3000 cases reported were detected in bangkok. an update is appointed for talks in myanmar where the military has killed hundreds of pro-democracy protesters. a statement says the 10 member

association reached consensus at a weekend summit on an immediate cessation of violence. it remains unclear if the military will release the leader. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am but -- i am vonnie quinn. this is bloomberg. shery: a range early indicators suggest china's economy continue to grow. our chief northeastern respondent joins us from hong kong. what are you watching? steve: the momentum we saw in the first quarter where we saw 18.3% gdp growth. of course that is year-over-year, coming off that low base effect from last year when the letdowns really began across china. we are seeing that momentum continuing pace into april, the first 20 days, that is a good

sign for export-dependent economies in asia, including some of those numbers we have in the first few weeks of april from south korea. the aggregate index tracked by bloomberg remains in strong expansionary territory, the same as march. interestingly, we have the standard small to medium-sized enterprise confidence index also picked up for a second consecutive month, indicating an even stronger performance in the current second-quarter, just three weeks and. what we saw a net 18.3% expansion in the first quarter, expect oriented -- export oriented sme's outperformed domestically focused sme's with higher output price gains. that is good. i mentioned the first 20 days of export dependent economies like south korea, they saw export

strength for overseas markets jumping more than 45% year-over-year from south korea, the fastest pace since 2011. good indications for the global economy that the chinese economy continues its blistering pace from the first quarter. paul: last week a number of high-profile u.s. companies, including general motors, disney, had talks with officials in china. does china perhaps hope that it might have some new allies in the bid to get some of these u.s. tariffs removed? steve: does american executives that i have met over the decades have dual wishes, of course they want the u.s.-china relationship to improve, they're not necessarily banging the protectionist drums in

washington. they are of course doing business in china. board as well -- ford as well as disney, united airlines, ups meeting with the vice minister of foreign affairs of china. he basically appeal to them to say, cancel additional tariffs or at least put pressure on the biden administration to cancel any planned additional tariffs on china, stop this trend towards decoupling as well as stop suppressing chinese companies. used flowery language. he said the competition between the united states and china should be more of a track and field competition, rather than a cloud of tory confrontation. that was the message at least the ministry of foreign affairs was given to u.s. businesses doing business on the ground in china. paul: our chief not asian correspondent stephen engle. let's have a look at what to

expect when trading gets underway for the new week. let's get over to sophie and hong kong. sophie: looking for green shoots. nikkei futures pointing higher in singapore, this as tokyo began a state of emergency. s&p eme slightly lower, this after we saw the s&p index cap a weekly loss. in the commodity space, check out futures in singapore, topping 183. this tracks commodity currencies on the ongoing industrial metal boom. the wti fluctuating this morning, holding below $62 a barrel. this ahead of the opec-plus meeting this week. india's covid crisis complicates the picture for the crude cartel. pulling up a chart on the terminal, we have seen indian stocks pullback as infections

search in the country. it fell below the 100 day line and is now lagging global peers, with indian stocks the worst performer in asia. with bond markets there is a prospect of more supply coming online, but appetites have been soft for indian bonds. shery: let's delve into the bond markets with the founder and cio of a hedge fund specializing in asian credit. great to have you with us. we continue to see signs of china deleveraging, also perhaps more regulatory crackdowns. what does this mean for the credit space and for investors? guest: thank you for having me. china deleveraging policy, we do expect will continue. we started the year with that being announced, and that has kept cap on the exuberance of the credit markets, because we

did start the year with credit markets tightening. the deleveraging has also meant that since the start of the year, we have had higher yields on average in onshore markets, the onshore market issuances have slowed for a while. the liquidity, still, is there however. refinancing channels for most of the companies, private companies in particular, still is a relatively healthy now. we are continued -- we are expected -- we are expecting continued jitters, especially with the haurong situation unfolding. this has peloton of fortune lend defaulting, which already had caused a lot of the high yields spreads to widen. on the one hand, it means that we have higher premiums, it

means that high yields asia credit has become even more attractive. on the other hand, it definitely means that investors are also questioning an overall framework of how credit spreads should be priced. shery: the chart on bloomberg looking at investment grade dollar bonds across asia, showing the spreads widened, this of course after the haurong scare. we did get a little tightening last week, but still higher than the levels we were at in march. how does the fact that haurong is again delaying their 2020 results going to affect the space? guest: let's keep in mind, first as an overview, from the beginning of the year, investment grade was not as cheap as high yields, compared to the rest of the world. we definitely always had more of a premium paid in asia high yields, compared to the rest of the world.

investment grade arguably was not cheap. then, on top of that you have all of the question marks related to what implicit government support means, knowing that the rating agencies framework has been premised on that uplift, depending on the strength of the right -- a province or whether the central government is willing to support the uplift coming from credit enhancement. in our market, we have $160 billion of bonds issued with the implicit support that gets around the fact that some credits can't get direct onshore guarantees. it is valid. there's going to be a lot more credit differentiation both, onshore and offshore wider

dispersion. it is not necessarily a bad thing. we have to go back to looking at the underlying credit start to see how strong the credit is on a standalone basis, before thinking about the strength of the province, and how important that business linkages between onshore and offshore. it puts into question a lot of how people use to approach investment grade. i don't think it is a bad thing, i think it is time for people to start doing the work from bottom up. but it is a new framework. the easy money is gone, you can't just sit on investment grade without thinking about the bottoms up. i think it is more about putting the investors to the mindset of sharpening their pencils. haurong situation in my opinion is going to take some time. it was interesting to me that the street consensus is very strongly weighed towards

thinking there will be a base case government bailout, there won't be a haircut. the reality is, we really do not know. there is a lot of uncertainty. i myself think that with the president before and how the government handled hna, which was seen as a company with fraud systemic risk potential. i think that is going to be the president that the government ticks -- government takes. paul: is the haurong story and all of the questions it has raised caused you to change your investment strategies? monica: for us, we were not weighing heavily towards investment grade anyway. we were definitely more interested in the high yields segment, particularly turnaround stories. it actually has given us more opportunities, because as we

tend to approach things from a more contrarian angle, haurong has produced a lot more investment opportunities in china high yields, and i think particularly when we look at the property segment, the presales this year have outperformed. most of the companies are starting to improve on their gearing, reduce debt. they're actually doing better at meeting the three red lines policy, and b would have expected as mentioned before, china fortune lend, defaults before that pop up with certain companies that have created volatility. we have actually continuously been picking up bonds that we felt were located on sentiment rather than underlying

fundamentals. separately, we have continued to stay invested in southeast asia credit that have been exposed to commodities. paul: monica, we will have to leave it there. thank you for joining us. still to come, after several aborted attempts we are told that a date is set again for hong kong and singapore to start their quarantine free travel bubble. we will have the details on that in a moment. this is bloomberg. ♪

shery: we are counting down to the start of trade in tokyo. watching some stories in japan. sources say that a portfolio company is in talks to go public through a spac, also overseen by the softbank group. on the vaccination front, nikkei is reporting that the japanese government plans to set up a large-scale vaccination venue in tokyo that can give 10,000 shots a day. from just a few minutes, japan's march services ppi will be released. overton south korea, the government has secured an effect seems to inoculate almost its entire population twice. one company releasing first-quarter earnings holding a conference call at 11:00 a.m. local time. seoul tax authorities have

seized crypto assets from hundreds of the liquid taxpayers, the first such action by a local government there. paul: hong kong and singapore will announce a start to their highly anticipated travel bubble as soon as today, that is according to bloomberg sources. quarantine free flights with start from may the 26th. but get the latest from our senior editor. give us a sense of the state of community transmission in both singapore and hong kong. are the two countries ready for a travel bubble? what are the risks? reporter: the state of community transmission in both places is almost nonexistent. you have numbers in both places where even when they sat there and have a couple of cases and there is cause for some alarm and hong kong and singapore, it is the sort of stuff for your -- where you are throwing a street parade in new york city if you

have the equivalent. it is very low here. the fact that it is so low in these countries and regions has gotten to the point where every bit of risk is difficult for them to want to accept. you have seen already this idea of a travel bubble between hong kong and singapore get pushed back twice. right now, the idea is that this can be announced as soon as today. flights starting may 26 on cathay pacific and singapore airlines, two airlines that do not have a domestic market and need to fly people anywhere. this could be the first of the travel bubbles for either of these fina capitals. shery: how much demand are we expecting for this travel bubble? reporter: the first time the travel bubble was announced, you

saw massive spikes in demand, surges and prices. -- in prices. it is a very busy air route in pre-covid times, there was quite a lot of demand for it. i would expect to see some additional high demand for it if it happens. singapore, right now, is that cruising capital of the world. cruises to know where were you get on a boat and sail the straits of your hearts content. i would expect there to be some strong amount of demand for this travel bubble, as well as the demand to replicate, if it can get open and stay open. as i said, the perceived risk in these covid-zero regions is very high, even if the actual risk is

a lot lower than some places like the u.s. and u.k. are willing to tolerate. shery: bloomberg's senior editor. coming up next, intel's earnings report showed signs that the company may be losing market share to rivals. we will hear from the ceo of the chipmaking giant, next. over in japan, we are seeing the japanese yen holding about 17 -- we have seen significant strength, topping 108. this as we get the ppi service number, you're on your breaking right now, and acceleration of 0.7% year on year for the month of march. meeting expectations that prices would remain flat. this also coming after five months of consecutive contraction in those ppi numbers, services year on year now accelerating .7%.

still nowhere near when it comes to broader inflation in japan, nowhere near the boj's target. we do get the boj meeting tomorrow. plenty more to come. this is bloomberg. ♪

shery: intel's latest results are stoking concerns the chipmaker is you losing market share.

revenues dropped and saw a steep decline in gross profit margin. the intel ceo spoke to bloomberg's emily chang about the company's plans. >> when you raise the year by half $1 billion, i expect a little better response from the market. disappointed to see that. but we also understand some of the concerns around data center and where we are. we had a blowout last year in data center, so it is a tough compare. we were a bit ahead of where we thought we would be on data center. we just rolled out some major products in that area. we started to move into our 10 animator and seven animator, it's exciting because it means we are getting more competitive and back on our front foot with, manufacturing capability, but it does bring some cost into the business. our story is a very different one. we are leaning in, we are executing and feel good about

our future. emily: you explained that drop in data center revenue as an inventory correction, temporary, but investors are concerned about long-term lost market share. is that market share gone for good? who feels that gap? >> we just lost a major new product -- launched a major new plot -- product, over 50% improvement in key areas like ai. the ramp for that with our customers is going very well. we also pointed out that enterprises are starting to come back to life, good growth in the government sector, this is a period where clouds are building out. we are starting to see them lead into the business as well. we feel like this was the bottom and we are ramping this year and seeing all of the signs that will be the case. we are going to fight for the market share. we are going to be aggressive, we are bringing in software, our

platform, our new silicon assets into the marketplace, and we are going to be quite aggressive in holding and winning back market share in this critical business for us. intel is back and we are going to be very competitive going forward. emily: you mentioned winning back market share. you heard tim cook tapping their new tips. i just spoke with amazon executive who wants to see their new chips in not just servers, but in kindle, alexa. since you unveiled your foundry ambitious, what indication do you have for customers like that will come back, when to be fair, they are also competing with your design? >> overall, what we have described with our integrated design and manufacturing strategy, we are going to be both producing our chips, but also being a foundry for other people's chips and the response

has been tremendous. i point to the fact that today there is so much concentration and very few suppliers, mostly in asia. the world needs a more balanced supply chain, both europe and particularly the u.s.. we need manufacturing here done by u.s. companies, we are stepping into that in a big way. we announced two new plants in arizona, a $20 billion investment. we already have 50 customers our pipeline who are working on us on taking advantage of these new foundry service capabilities. paul: just a few minutes away from the open in sydney, tokyo and seoul. sophie: we are watching fujitsu in a tie up, everything could be had this afternoon. keeping an eye on softbank as the vision fund portfolio company is in talks to go public via a stock. solar panel players saying they should be mandatory, and keep an eye on a smaller annual loss due

to cost-cutting measures. paul: thanks very much. we have those market opens next. do stay with us. this is bloomberg. ♪

shery: welcome to daybreak asia from new york. paul: asia's major markets have just open for trade. our top stories this hour. asian stocks set to kick off on a strong foot after strong earnings in the u.s.. investors also focusing on the fed. the world pledges aid for india which recorded one million new virus cases in the past three

days. the u.s. will send vexing materials and step up financing, joining european companies offering help. also, china's troubled haurong phrase investors nerves five delaying its full year earnings again. shery: japan, south korea and australia coming online. let's get to the action. sophie: ahead of the golden week holidays, japanese stocks moving to the upside at the start of cash trade, following the were start -- week for japanese equities since february. the yen trading at a seven week high with markets anticipating a fed decision. traders are waiting on boj's bond by and watching the 10 year space which comes ahead of the central bank decision out on tuesday. turning to south korea, earnings are due from cosco, also watching crypto place with prices fluctuating in the asia session. the cost be getting one third of a percent after snapping a

four-week game but the index, globally improving exports helping the recovery in taiwan and south korea. we get gdp reports from both economies this week. switching to australia, this morning at the start of a staggered open, stocks opening higher by 2/10 of a percent but keeping an eye on industrial measures -- metals, given the rally with copper and aluminum. in the commodities patch you have crude holding below $62 a barrel, head of the opec-plus meeting this week. virus in india. initial headwinds to the demand picture for oil could put some pressure on prices. paul: thank you very much. joining us now from a market analysis is richard, the ceo of an investment management firm. i know you are a fan of that old

cliche, cash is trash. i will offer you another one. do dare take a profit at the moment? how much longer can this bull run go? >> that is a good one. usually it is made when you have a pretty good first half of the year and everyone goes off for the summer. with all of the lockdowns, who knows if we are even going to have summer. all of the cycles might be interrupted this year. i think at the moment we are seeing a continuation of the momentum we have been seeing previously. we have the fed, which seems to be willing to keep rates low. we have pent-up demand, in the trillions of dollars. we have some stable economic figures coming out. while in all the market is going to take these good pieces of news to heart rather than some of the risks that are still lurking in the background. paul: we will be hearing from the fed a little later this week. how difficult is their job at

the moment? sooner or later, monetary policy is going to have to be normalized. how does it happen without taking equity prices? >> this is the conundrum. part of the problem is the fed with its zero interest rate policy has basically lost its authority. it now cannot increase without causing a severe crisis in the market. i think the bullish picture that i painted a moment ago could be turned on its head if the fed says we are going to taper, or increase rates. the markets have been relying on the sugar rush of the fed for so long, that the fed is in an intolerable position. every time i go to the supermarket these days prices have gone up, and are going up quite a bit. there is inflation out there. one wonders where the inflation that we are likely to see can be a half-point or quarter-point move up, rather than a 5% or 10%

move up as we saw with other years. shery: you mentioned earlier have given some any people are still under lockdown, we really don't know what will happen next. the uncertainty. right now, the -- question of the day, how will japan's emergency affect assets? one third in a state of emergency for japan. >> i do not quite get the question. shery: how will the state of emergency affect assets? whether it is locally, we have seen the nikkei take a hit locally or even ritually or globally -- regionally or globally. >> i think what we are seeing is a series of cycles in different markets. japan is one, we are seeing a cycle of increased cases in europe, now the u.k. seems to be pretty sanguine. the u.s. seems to be on the back of the curve, or the latest

curve at the moment. we are seeing these waves move across the markets. they don't really seem to be impacting the markets that much, except locally, and then when you have ahead, as you might see in india at the moment, when the covid crisis eases, the market then recovers. i think we are in a rather strange position, in terms of the fact we have this overall economic wave that tends to be quite positive post-covid recovery, but also many countries are still in the thick of it and have real issues. i think it is very difficult to see what is going to happen until these particular many cycles start to coalesce. at the moment i looked towards the u.s. as my guide, because clearly if the u.s. market comes off, everyone is going to get hurt. shery: i have seen in your notes that you are less positive on china.

i wonder why, because all this conversation that the virus is a factor, beijing has it very well contained, and economic recovery there seems pretty strong. >> economics are good. the market, i am not so sure will be good. the authorities that you have a handle on interest rates, and they have been tightening recently. not necessarily through rates but other measures. they are very strongly aware of the fact that twice in the last decade they have allowed the markets to move ahead, and indeed encouraged the markets to move ahead. that has led to some severe downturns. i think the chinese authorities will be a lot more careful this time. i do not think they want the markets to run away in the bubble, i think they want to hold back. i think that is good economics. there are clearly some issues out there that we will never know the deaths of. -- depths of.

haurong, there is an enormous hole. it is a big company. they have a number of issues to deal through. that is probably going to keep a lid on market progress compared to other parts of the world. paul: i just want to quickly get your thoughts on bitcoin, deck about $49,000 this morning, but on about 4% just in the course of this morning. i know some of your clients are talking to you about being one of the big risks, what are they saying? >> usually they are the clients that are not in it, obviously the general view is it is famous for being famous. it is going up because it is going up. it seems difficult to see any fundamentals in it, but we have also seen the same in tesla. we do have these many bubbles out there which are now getting quite large in terms of market cap. we are looking at bitcoin, well

over $1 trillion in market cap. if it reached for trillion dollars and then had a meltdown, we could see some systemic risks. there are a number of unknown unknowns out there. bitcoin is one, obviously if tesla came off that would be one. we have the inflation issue and how the market is going to address that. there are some clear risks out there. i think for the moment, the market is content to look at the positive side of things has become out of covid, and will hold onto that for a while. shery: always great having you on. let's get to vonnie quinn with the first word headlines. vonnie: the u.s. is the latest nation pledging aid to india to help stem the biggest search of covid cases. the administration says it is sending rock vaccine materials and will step up financing support. it will maybe offer unused astrazeneca doses. india reported around one

million new cases and that has three days, and the prime minister is imploring residents to get vaccinated. meantime, -- [indiscernible] the indian express newspaper said criticism of the handling of the pandemic as well as videos of attacks by maoist insurgents. in a statement, twitter says it reviews all valid, legal requests. thai officials have ordered dozens of bangkok businesses ordered high risk to shut down. the city is racing to contain its biggest outbreak since the start of the pandemic. cinemas, gyms and convention centers will be closed for two weeks starting monday, while malls and convenience stores cooperate with limited hours. more than half of thailand's almost 3000 cases reported were detected in bangkok. bloomberg sources say hong kong and singapore may announce as soon as monday that a long-awaited travel bubble will begin may 26.

travel between the two financial hubs would be quarantined free, if no further virus outbreaks are reported in either city. previous plans for a bubble were suspended, once last november, while of course the announcement from this mom is postponed from last week. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. paul: still to come, a jampacked week ahead on the eco-front across the globe. goldman sachs tells us what to expect from south korea's gdp numbers, a bank of japan decision, and chinese pmi's also due in asia. coming up next, the huarong debate continues. the details of that ahead. this is bloomberg. ♪

shery: huarong its earnings will be delayed again, potentially fraying nerves afterwards by potential defaults. let's get to our china markets editor. we know what happened the last time the seven. why are they delaying it again? >> back in late may, the auditor said there were still trying to figure out the transaction related to huarong asset management. apparently that is still not done. they have not given any indications they would be able to meet the people 30 deadline. late friday, huarong's security unit said they would not be able to meet the deadline. asset management hot -- not being able to do so is notsurpr. paul: delays all around.

what are the implications of these going to be? >> i don't big we are going to have to sell off we saw in early april after the initial uncertainty related to the earnings today -- delay. there has been a black of lack of information on month -- all month, whether or not investors are having concern or are just working through finalizing and making sure everything is in order. no one is certain as to what the transaction entails. there has been this uncertainty, this quiet period in recent days. the bonds have finally stabilized. littleton for the most part, folks have assumed there would be discontinued period of waiting for what huarong would say regarding this transaction and willing -- waiting to see the 2020 results. shery: the call coming from investors who expect some sort of bailout to happen.

what are regulators looking at? >> the people's bank of china, bloomberg reported last week that they may assume $100 billion of assets, to ease their bad debt management capabilities, to ease what they are having to oversee. it seems as though we might not see the earnings until the restructuring is finalized, whether it is corporate restructuring, and actual restructuring of debt, especially the dollar bonds. all of this news may come a lot once. we may not see the earnings numbers until exactly what the restructuring looks like, if there is in fact one. paul: our china markets editor. a quick check at the headlines. a chinese brokerage is going on in overseas take over and hiring spree which bitsy assets jump more than tenfold in the coming decade. the bank says it is looking for

potential m&a targets, including stock houses, hedge funds and wealth managers. they are looking outside china's $15 trillion asset management market as rivals like blackrock are seen gaining a 15% share in the next 10 years. regulators in beijing find education providers for pricing violations as china steps up oversight of the booming edu-tech sector. the maximum penalty was imposed on a company. according to the regulator, the online education companies use false or misleading prices to lower customers. credit suisse bankers reportedly leave -- believe one company could have been worth $30 billion. according to the guardian, a presentation in january claimed the finance firm received

exponential growth, triggering a nine figure windfall for david cameron. it collapsed just over a year after the presentation. shery: up next, one company appointed envoy after myanmar's coup leader agrees to discussion to and months of violence. this is bloomberg. ♪

paul: and envoy was appointed to mediate peace talks in myanmar. the coup leader agreed to discussions to find a way to end the protests and violence that have gripped the nation since february's coup. our southeast asian government reporter has been following the story. what was agreed to? reporter: the countries have

agreed to five points, there should be an immediate cessation of violence, constructive dialogue, a special envoy, a mediation process, humanitarian assistance, and these are quite important steps. it is a bit too early to say one way or another if they can be effective or not. this is a very unique position for asean to be in. they are not usually in the business of interference. whether we will see if the release of prisoners or the democratic leader, whether the coup will end itself through this process and dialogue, it is still quite early to see. shery: how does the parallel

government react? reporter: just before the meeting itself, they had a list of demands. there were quite strict about asking asean not to meet with -- it calls, it warns asean that any meeting would legitimize the coup. the reaction was surprisingly positive. they found it "encouraging". there is still the matter of whether there is an and insight to the tensions, and the killings itself. there have been murmuring's over the weekend that there has been some continued violence. while it was an encouraging development, they are looking for follow-up to restore

democracy and freedom for the country. shery: reporting from singapore. one of hong kong's more prominent activists who fled to the u.k. seeking asylum before the national security law is imposed last year says he is encouraged by the biden administration's multilateral approach. he spoke exclusively from the u.k. with stephen engle. >> i don't think anyone pushed us to for. if you look at the chinese government promising the hong kong people in the 1980's saying we will eventually enjoy democracy and autonomy. hong kong is just asking for humble demands to get the chinese government to do what they have promised. i think that is basic responsibility of the regime to its people, and for hong kong

people, always asking these humble demands. stephen: no mistakes were made in hindsight? nathan: in general, definitely we have been in a lot of situations, and strategies can be explored. that does not mean we are playing the victim. stephen: in recent days i have interviewed pro establishment people, all of them reemphasize their point, that there were hands from abroad, particularly the united states that influence this, and perhaps coaxed protesters arm, and also financially supported them. nathan: it is in the geopolitical interest of america to do that. on the ground, i certainly see

evidence. stephen: how do you refer to this criticisms? nathan: those are completely false. they portray hong kong's protests as initiated by so-called foreign actors, instead of independently by hong kong people, so they can disregard all of the demand listed by the hong kong people, and's demand that it is just some conspiracy initiated by countries that want china to fall. that is not true. hong kong people initiate all of those protests. up until now, they have been referring to those narratives for years. there has been no evidence of what they have said. i think it is a conspiracy

theory, and a smear tactic to hong kong's democratic movement. stephen: after you arrived in the u.k. you met with mike pompeo. what would you like to see now from the biden administration? nathan: the china policy is one of the very few areas that has continuity between the two administrations. in the current biden administration, they have been conducting china policy and a much more lateral way, deploying different strategies, including coordinating sanctions on chinese officials in the previous months. i think that is a really good sign. we have to unite, international democratic communities to put pressure on china and hold them accountable. so they can do whatever they want with no consequence. i think the biden administration has a very strong china policy. the world has to be united and

stand up against the expansion of beijing. sanctions are just one of the first ups. we are pushing for a lot of other measures, sanctions on hong kong officials, and also, appealing for other parts of the world to decrease their reliance on china, and to be very strong on human rights policy. i think there are still a lot of possibilities to be explored, and a lot of things to be done by the international community, democratic communities. paul: hong kong democracy activist nathan law speaking exclusively with bloomberg. you also heard from our recent interview with the hong kong police deputy commissioner, and we continue to reach out to all sides of the debate for comment on hong kong's future. plenty more to come. a check of the markets for you. stay with us. this is bloomberg.

♪ wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are.

shery: we have an alert on mgic, said to be near a $3 billion deal. this would be a retirement and savings account provider, and it was moving towards a sale, an initial public offering, but given how much interest they have received, sources telling bloomberg that they are looking into a potential deal. a representative of the firm has not given us any comments, but bloomberg has learned that stonecourt capital and gic are nearing that $3 billion deal. investors have snapped up

retirement services providers in recent years, they are right for technological innovations. a story we are watching closely. let's get to vonnie quinn. vonnie: the biggest global vaccination campaign in history is well underway, with more than one billion doses administered across 172 countries. according to the bloomberg vaccine tracker. that is enough to fully vaccinate 6.7% of the global that test population. in the u.s., 229 million doses have been given so far. lindsey graham says republicans may be ready to back up to $900 billion in infrastructure spending, less than half the $2.2 trillion president biden has proposed. he told fox news an increase in the corporate tax rate to 20%, a deal is to be done. biden is expected to talk about

plans when he addresses congress this week. exit polls for albania's parliamentary elections suggest the socialist party is in a tight race with the opposition democratic party. pauling give the socialists about 40% of the vote while democrats are specters of 42%. it is seen as a key milestone for albania's quest for full membership of the european union. china's banking regulator is urging five large banks to boost loans to small and microsized companies by more than 30% this year. the china banking and insurance regulatory commission said on its website that large lenders and joint stock banks should also strive to grant loans to more first-time borrowers. the regular monthly boost and support for advanced manufacturing and strategic emerging and supply chain sectors. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. paul: india's virus crisis keeps

getting worse. one million new cases in the past three days, and the capital area facing a severe oxygen shortage. the u.s. has joint european nations in pledging financial aid and raw materials to boost vaccine production. joining us now with more details we have bloomberg's mumbai bureau chief. what is the latest on the virus? reporter: thank you for having me. the crisis is as grim as it was last week, in fact there has been no let up for something as basic as a hospital bed. there is also mounting this is against the prime minister and his administration for the situation on the ground, where people who are sick are lying on the pavement in certain parts of the country. there has been some development, hopeful developments overnight. the u.s. pledged financial aid. remember, india is the world's

biggest manufacturer of vaccines. the u.s. invoked local laws to give american vaccinations raw materials, president biden has come in for criticism and seems to be easing these policies. however, the u.s. is not sending vaccines yet. the u.k. has also pledged to send play of medical equipment. before tomorrow, when this clients start landing, thousands more people have died. shery: this is why dr. anthony fauci -- this is what dr. anthony fauci had to say. >> i think that is something for active consideration. i don't want to be speaking for policy, but that is something that certainly is going to be actively considered. shery: given the severity of infections and how there might be a delay until supplies get there, probably going to see another lockdown in the meanwhile?

-- are we going to see another lockdown in the meanwhile? reporter: the prime minister has been resisting lockdown's. he was the person who announced strict lockdown's last year during the first wave, but this time because we have vaccines, and doctors know how to treat people. he has been resisting a national lockdown. however, several states including the most wealthy and industrial estate has demanded stay-at-home rules. there are local letdowns but the prime minister has been resisting a national lockdown so far. shery: we have breaking news. one of toshiba's largest investors is calling on toshiba to run a strategic review after private equity firm cvc capital proposed taking the company private. we are talking about investment

partners which owns more than a 7% stake in toshiba, sending a letter to the company's board saying they believe running a full and fair sales process is essential to building trust for investors after a tumultuous period that involved the resignation of a chief executor. we will be watching the story as it unfolds. going back to the impact of the surging virus cases around the world, our next guest says the ongoing infections could lead to permanent damage to potential outputs. let's bring in the goldman sachs chief asian economist. always great to have you with us . we were talking about india earlier, but we know japan is now in his third state of emergency. what is a long-termers for these economies? -- long-term risk for these economies? guest: the longer the lockdown stay in place the more potential damages to small and medium

enterprises. also, the more risks that workers who have been less attached to the labor force don't come back. in most countries, we are not too worried about this. but in some asian economies, particularly those with longer lockdowns and thus fiscal support for the economy, this can beat a concern. -- be a concern. shery: which country you have in mind? guest: at the moment, india and the philippines are places, you were just discussing, the intensity of the current wave of the virus in india, and the possibly of lockdowns resuming. in the philippines, they have also had quite a long and severe set of restrictions in place that we think is probably having some potential longer-term impact on the business sector. paul: let's talk about china, a

country where the virus appears to be under control. we have pmi coming out this week. you expect to see those showing a sustained momentum, but how much longer can this momentum continue? he guest: certainly in china and many other countries, the speed of the initial rebound can't be sustained. we are co-seeping settle into more of a trend -- you're going to see more of a trend when it comes to growth. in china, the industrial sector is fully recovering, operating above long-term sustainable rates given the strength of export demands. we expect to see china settle into a growth pace of something like 5% to 6% over the next few quarters, maybe a little stronger on a year-to-year basis in q2. we still have some room for the consumer and services sectors to normalize a bit further, as i mentioned, the industrial side of the economy has already

recovered. things are going to be more gradual from here. that is in contrast to a lot of other economies which are still opening up and vaccinating, and may be their fastest pace of growth in the next quarter, particularly the u.s. and the u.k.. paul: here in australia we are having a first quarter prices. you expect to see a boost from fuel prices. still a really long way away from the inflation target, that is a story being played out across the asia-pacific. when do you see a sustainable return to inflation? guest: i make that distinction between short-term bursts of inflation related to things like energy prices, which we will see increasingly over the next couple of months, year-over-year cpi inflation within a point or two higher. that is not in our view a sustainable driver of high inflation. what would be a sustainable driver would be a wage price

spiral, signs that the labor market is tightening, wage inflation is accelerated. that, i think is really not a story for 2021. that is probably more realistic on 2022, 2023 timeframe. we don't think we are going to see central banks raising interest rates this year, we think that is a story for 2022. paul: the chief asian economist at goldman sachs. let's get you some breaking news. credit suisse says eight no vote is being urged to the board, shareholders saying they should not reelect the head of risk. credit suisse is one of the biggest losers, those hit hardest by the collapse of a capital management company. we are hearing shareholders are being told to vote against

reelecting the head of risk at credit suisse. ome. never exclusive conversation with a metals group chairman, hearing about an international hunt for green energy assets. that is next. this is bloomberg. ♪

paul: just to clarify that breaking news on credit suisse.

the financial times reported that shareholders are seeking the removal of the risk chief. let's get a check of the markets with sophie. sophie: new zealand is off-line. mixed picture for asian stocks. in sydney, we are seeing the asx 200 being weighed by coal miners along with consumer names. over in south korea, the kospi is edging higher as we are seeing the benchmarking boosted. over in tokyo, you have m3 waned the most on the nikkei, the companies operating estimates [indiscernible] flipping the board for a quick check. in tokyo, honda shares on the move, gaining ground by as much as 3.4%. the carmaker setting a target for all sales to be ev by 2040.

and holdings gaining ground as well, this as the airlines forecasting never losses health by cost-cutting measures and a reduced tax burden. shares gaining some ground after the bank boosted its annual profit forecast to $4.3 billion. final results are due on may 14. check out tokyo still, shares surging by the upper limits in tokyo. shery: australia's metal company. we spoke exclusively with australia's richest man about what is next for the group. >> we are currently speaking to really large customer bases. in japan, we are going for asia. we are going up into europe.

then we will also be speaking to a big supply base, africa, asia, australia will be huge and reliable. let's not forget latin america, where we had very large operations. there is a global pandemic, but, climate change is not waiting for anyone, and not covid-19. we need to get in front of that curve, so we are continuing to push ahead. haslinda: the cost of producing green hydrogen is still very high, and storage is still a part of the puzzle. how quickly do you think technology -- how quickly do you think scale can be reached? andrew: let me give you an example. i got to operating costs around $55 a ton to create iron or to

the world. then we started a flywheel of improvement, where we built up the supply, built up the demand, lower our costs, brought a new technology. not one hero technology, not one hero person, but thousands of people and improvements and technologies. right now, those operating costs are less than $14 a ton. we brought it down by nearly 400%. we are going to be pushing for the same track record with green hydrogen, green electricity. you cite happening. -- you cite happening. we can make it happen with hydrogen. we know that the battle is uphill and very tough, but this is a battle which we don't have a choice about. it is about of the world must win. -- a battle the world must win. haslinda: china has many

hydrogen products. as early as last week, you said you are interested in working with china. what opportunity do you see there? andrew: very large wind and solar projects which china is already pursuing. they know that their 2060 target is both toast like the world's battle against global warming will be toast if we wait until 2060. they are moving now. when we travel the world, we run into our friends from china everywhere. china is moving quickly. they are good, solid, from the competition. we are saying that china is actually turning green as fast as it possibly can. north america, under the biden administration is really showing fabulous leadership. in the administration here in japan, leading by example.

paul: andrew forrest speaking with bloomberg. still to come, how one of hong kong's biggest real estate companies plans to buy the city's last movie palace. we hear from the ceo. this is bloomberg. ♪

paul: quick check of the latest

business flash of months. one of toshiba's largest investors is calling on the japanese conglomerate to run a strategic review, after cvc capital proposed taking the company private for $21 billion. 3d investment partners called for the review. the stock has seen large swings since cvc's proposal earlier this month. cathay pacific is going to shrink its owner of bowen jets, taking it from 21 to between 10 and 15 planes. according to the south china morning post, the move is being made to optimize in order. the airline is considering other aircraft for its needs. cathay order the just and plans to use them on key long-haul routes. shery: china starts trading in about a half an hour.

let's turn to sophie in hong kong from what to watch. sophie: we are watching airline stocks in singapore, as well as a attentional travel bubble being announced between hong kong and singapore ticket start in may. keeping an eye on aircraft equipment maker's, singapore engineering as well. asian airlines have been playing catch-up to the broader regional events, the on-again off-again hopes for travel corridors to be established across the region. cathay shares have been a clear lagarde. the airline -- singapore air shares is the line in purple. they have faired relatively well, but have been in a downturn since early april, and there is a question about whether airlines might need to raise more cash, singapore airlines among them.

paul: thank you. one of hong kong's biggest real estate companies is taking on a massive project to restore the city's last movie palace. we got a look behind the scenes with the ceo. >> this is hong kong's less surviving movie palace, that a cultural icon. the theater first opened its doors back in 1952 when it was able to see 1400 people. initially it was a concert hall, before a transition into a movie theater. eventually, a close down in 1997. now, it is going to be restored back by 2026. >> behind the plan is adrian. in october, 2020, the company acquired full ownership of the theater for over $600 billion. >> my mission is to connect the

business to social progress in getting back. i would like to educate the next generation and respecting heritage and culture. >> when it opens, the building was considered an architectural model. when it comes to heritage conservation, hong kong has had little success. talk of them all to the theater has been building up for some time, and preserving the past is a top priority. >> it looks like it was on the street. [indiscernible] people go to watch movies, watch a play or musical, and they would do their hair. >> the theater once had a 56 foot cinema spring, and played an instrumental role in hong

kong's movie industry. in the 1970's and 1980's, they produce over 300 films a year. he said the ultimate goal is to build what he calls a cultural oasis for the next generation. >> i think there will be vr, ar, different ways. we want to great a much more versatile theater. -- we want to create a much more versatile theater. shery: adrian chang speaking with bloomberg. if you are watching us instead of the oscars right now, thank you very much. the 93rd academy awards are finally here after months delay because of the pandemic. safety protocols in focus. very limited attendance and multiple rounds of covid tests and required quarantines, and of course, the stakes are very high . last year's academy awards for

the least watch ever. this year is expected to be worse. full disclosure, i have not watched any of the nominated movies. i understand that there were a couple that have received prizes, promising young woman for best original screenplay, i have no idea what the plot is about. paul: feel no shame. i have not been to the cinema for a veg time because of circumstances. "promising young woman" is a dark comedy about a young woman seeking revenge for the rape of her friend. difficult material, winning best original screenplay. "the father" best adapt its replay. abc so that all of its advertising files, including one slot for $2 million. never mind for the struggling viewer numbers. they seem to be getting revenue for the advertising slots. shery: what a difference a year

makes. the way that we are watching movies now, streaming, the closing of theaters. you and i have to head to the movies. that has to be a thing, right? [laughter] we will definitely be doing that. we are also watching the markets. chinese markets coming online, we hear from bain and company head. to stay for that. that is it for daybreak asia. our market coverage continues as we ahead to the start of hong kong, shanghai and shenzhen. standby. this is bloomberg. ♪

tom: it is 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open. david: let's get to your top stories today. india's covid-19 crisis. the global economic recovery.