shery: i am haidi stroud-watts in sydney. shery: i'm shery ahn in new york. welcome to "bloomberg markets: china open -- "daybreak asia. a muted open after tech heavyweights. also that shares jump as sales beat estimates. microsoft slips with results missing top and projections.

sources say icbc helped the debt manager repay its offshore bonds. plus, more fallout from the tobacco. nomura suspends the senior executive and replaces its -- haidi: let's take a look at how markets are setting up in this part of the world. what are you seeing? sophie: we have futures broadly higher in asia. investors eyeing a long list of earnings in the region including chinese carmaker byd and names like sony as well as sk hynix. it raises revenue outlook on server demand. in australia, we had training updates. the supermarket operator saying behavior looks to be normalizing. we will get more on the consumer with japanese retail sales data due for march. in south korea, we have had the

update on consumer sentiment, which strengthened in april. a recovery continuing in south korea with j.p. morgan and bank of korea raising the gdp growth forecast for the year. sinopec expected to report a strong first quarter due to higher fuel prices and demand for petrochemical products. checking on how crude is faring at the start of the session here in asia, wti holding above $63 a barrel after the best jumped into weeks for crude. this as there's optimism for the opec plus cartel seeing outlook improving. policymakers facing pressure. looking to raise prices on products across the board from medicines to cars as well as food so that may limit the policy options and it may seek to prioritize tamping down the inflationary pressures over managing yields lower.

shery. shery: to our top story now, the mega tampa earnings bonanza is here. alphabet jumped in extended trade after reporting quarterly sales that topped wall street estimates and unveiling a big share buyback. microsoft also saw robust third-quarter sales lifted by strong demand for cloud computing services and personal computers. failing to satisfy investors with shares slipping right now. let's cross to our west coast reporter, ed ludlow, in san francisco. let's start with those strong numbers out of alphabet. ed: the story is that they benefited from all of us being stopped at home during the pandemic and now, they are benefiting from the economic reopening that comes with better vaccine rollout and basically, there is evidence that is more of us adventuring out of our homes as we go back to leisure and business travel. the business is also benefiting.

$39.1 million of revenue tied to the quarter. youtube did exceptionally well as well. it rose to $6 billion. that closely tied to us being bored at home and looking at videos on youtube of cats or whatever it is you are into. it's a pretty broad-based growth for the company. benefiting from those different things as well. businesses want to capture that economic reopening. they are spending on digital marketing, digital ads, and that's a great boost to google. haidi: let's talk about microsoft because it's perplexing. they were really solid numbers but the bulls were still disappointed. >> significant and convincing beat across the board. the expectations were incredibly elevated. revenue growth was pretty phenomenal. 50%. who would be concerned about 50% topline growth? expectations going into this

were very high. in the first quarter, microsoft had an exceptional quarter in terms of pc sales, closely tied to us working on earnings from home and you know, stock has been on such a tear. the market cap hovering near to $2 trillion. it seems like even though top and bottom line were on estimates, they did not match the highest expectations of wall street. there's also a chip and go to this which i find very interesting. sales of the new exports were hampered due to the shortage of semiconductors as well. a lot for investment to take in. a good earnings report. just not good enough for wall street. >> great way to turn to the chipmakers. how did they do? >> texas instruments is really interesting because it manufactures 80% of its own chips. it does not outsource to tsmc and samsung. times are very stretched for texas instruments and inventory levels are not at where wall street wanted to see them. the company gave a tentative

forecast for the year. they did not give a bullish forecast, which basically made wall street believe some of the supply issues may have been in place and that those leadtimes -- very bullish forecast for the fiscal year. they upgraded the sales growth to 50% target for 21, up from a previous target of 37%. amd does outsource chip manufacturing for the likes of tsmc but they saw strength in their data center sales. the md is a direct competitor to intel in the data center space. when it reported its earnings earlier in the season, the curtain -- concerns were that it was losing market share, really reflected in the numbers on tuesday is exactly that. it could be gaining market share in that space and seeing pretty broad-based growth and strength across the different business units. >> ed ludlow with the latest. speaking of chipmakers, we are

watching out for results out of south korea this hour. breaking those figures on that a bit later as they cross the bloomberg. you can turn to bloomberg for more on the big tech earnings. you can go to tliv to get commentary and analysis from bloomberg's expert editors. let's get you to new york. vonnie quinn with the first word headlines. vonnie: joe biden says he spoke with prime minister narendra modi to talk about when the u.s. would send covid vaccines to india. it is something he intensity but did not specify a timeline for a decision or shipment. biden says the u.s. is providing aid in the meantime including remdesivir and machinery for vaccine manufacturing. australia is banning all flights now from india until at least may 15 as the asian nation battles what scott morrison describes as a terrible crisis. morrison announced a 30% flight

coming from india in a bid to ease pressure on inner-city hotels being used as quarantine centers. he called the number of cases diagnosed in these hotels and originating in india concerning. sources tell bloomberg president biden is planning to exclude an expansion of the estate tax in the proposal. during the 2020 campaign, biden pledged to increase the estate tax. the american family plan seems to be unveiled wednesday and will end the major benefit for wealthier states that have been reducing tax for inheritors. president biden has issued an executive order requiring federal contractors to pay workers at least $15 an hour. the push to raise the minimum wage. democrats failed to include an increase for all businesses in biden's pandemic release package last month. it will face opposition from the business community which argues

that forcing companies to pay at least $15 an hour will stifle job growth. opec-plus has recommended plans to gradually increase oil production of global demand recovery from the pandemic. this recovery even as infections surge in india, the world's third-largest crude importer. a committee led by saudi arabia and russia agreed the coalition can skip the scheduled full-scale meeting with this plan to increase supply. the alliance intends to restart about 2 million barrels worth of daily output over the next three months. 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 have on -- i am vonnie quinn. this is bloomberg. shery: we discussed nomura's results later this hour but up next, we will have more on direction with the global strategist, the president, kumar. this is bloomberg. ♪

shery: the federal reserve is expected to hold -- some are warning it is making mistakes. kathleen hays is here with more so what is the argument for the fed to switch gears and at least start to think about thinking about tapering? kathleen: let's start with the consumer confidence report. a lot of people are saying the economy is going to boom, massive stimulus on top of extraordinary monetary stimulus. what do you expect now? consumer confidence in the united states surged in march much stronger than expected, up nearly 13 points in the latest month to one to 1.7. -- 121.7. it's mostly driven by the overall index.

people's vision of present conditions, they see better labor market conditions as well. bloomberg economics says it's a sign that the u.s. economy is set to roar, driven by a roaring consumer who has been driven by vaccine progress, reopening's, you name it. another thing people are saying, maybe the fed should be watching more closely, is these soaring commodity prices. it will be filtering into soaring inflation measures. the cpi is up to about 2.6% year-over-year. look at the commodities prices which a year ago were in negative territory, have soared way ahead of the consumer prices. look around 1998, 2001. you can see a couple of times where they were really far apart. they don't go lockstep all the time. this is another signal, a warning sign of the fact that may be inflation will be harder than you think and it's not just commodity prices. a great story on the terminal

today, u.s. companies are starting to bump up their prices. we are hearing their earnings report that you are seeing a supply squeeze. materials. they cannot get to produce what they want to produce, and this as well. jeffrey was on bloomberg television earlier, and he is disputing what the fed said about this being transitory. he says the fed is going to get it wrong. let's listen. >> we don't know. nobodyi'm most concerned about the fact that there's plenty of indicators that suggest that inflation is going to go higher and not just transitory basis for a couple of months so we will see. that is how i think the fed is going to picture it. they are guessing. kathleen: he says he thinks the fed is guessing. a lot of people would say it's partly a gas, but this is a concern that a lot of people are having. things have changed since the fed instituted this new inflation framework, all this stimulus. isn't it going to make a

difference? we were wondering what we would hear from jay powell on that tomorrow. shery: why is the fed keeping policy unchanged given all of these risks you point out? ed: let's -- kathleen: let's remember that the fed tightened too quickly in 2015. he doesn't want to make the same mistake. jay powell will say it again. they want to see substantial further progress towards their goal. you look at inflation and that is a big problem. he has said they are committed to getting inflation above 2% and keeping it there for a moderate period so most of the time, almost a decade now, the fed undershot its own inflation target and this is what we are going to hear again. they want to be patient. they want to go slow. they don't want to prematurely take steps to cut off what looks like a very solid post pandemic recovery. we will hear a lot of questions from the press at the p conferenceer meeting, shery. for now, we may get the same

kind of questions but we are all going to wait to see -- are we even thinking about tapering yet? shery: kathleen hays, our global economic and policies editor. the fed will have to continue resisting scaling back monetary policy, a move we saw from the bank of canada last week. tree kumar -- our guest joins us. always great having you with us. what is the difference between the boc and the fed right now? >> the big difference, shery, is the fact that the bank of canada -- ahead of what we did last week, last wednesday, in terms of tapering, is something that powell simply cannot beat in the united states. the u.s. has gone way too far in suggesting the fed will back them up. keep in mind that mr. powell in

december of 2018, at the end of the fed meeting, said he was going to increase interest rates three times during calendar year 2019. what happened was that the market cratered between the press conference and the end of the year so on january 4, he completely backtracked, went back, and said he was going to actually cut interest rates during the year. this is a fed which blocks themselves in in the sense that they have given the market a lot of reasons to depend on them and if he changes tackm you will hav, a massive -- tack, you will have a massive market correction. shery: how concerned are you about potential inflationary

pressures, especially given what is happening in countries like india, that are smack in the middle of double supply chains and are suffering? we are seeing disruptions because of covid. >> even without indian disruption, that's a very different topic as well. even if you set that aside, i think inflationary pressures in the united states have been rising as a result of fiscal and monetary stimulus. i shifted my view on inflation after having been an inflation dove for many, many years after january 5, when the georgia senate runoff elections went for the democrats and the democrats ended up controlling all branches of government. i said inflation is going to shoot up. it's not a new development. it has been happening for a wild. president biden wants to increase the stimulus. he wants to have a massive, big infrastructure program which even we may not stop.

it could go as high as $4 trillion and all of that cash is going to be chasing, as you said before, with the bottleneck, and limited supplies of goods and services, and that causes inflation to go up. we have seen producer pricing in march. the 4.2% increase year on year was the highest in almost 10 years. the warning has come. the fed is not going to take it because it is simply unable to share. haidi: is it possible to put aside what's going on in india at the moment from the perspective of an investor, both from a supply-side and demand-side disruptions? >> there are two issues here. one, it is the humanitarian tragedy and that is one reason why you have western european governments, the united rates, all react and wanting to rush

vaccines to india as fast as they can. second is it is also becoming a very important global market. in terms of whether you can ignore india or not, the question is, from an economic viewpoint, what is your time horizon. if you are talking about the next fixed at 12 months, the global economy can recover purely in economic terms. it can recover in the indian recovery but if you look at over the next five years or 10 years china and india, not only the growth leaders, they also are going to become the largest economies of the world and the united states is going to be number three in 10 or 15 years time. if you are looking for a long-term future in india, you cannot ignore it. if you are looking at the next six months, you can get by with

your focus on other asian countries, western europe, and the united states. haidi: always weird to have you with us. global strategies president and founder joining us from l.a. coming up next, icbc repaying one of its bonds on tuesday. the details are ahead. this is bloomberg. ♪ oomberg. ♪

haidi: china's asset management company -- on tuesday. funds were provided by the country's largest state owned bank. it's a sign that china's lenders are heeding government calls to support government's biggest distressed debt firm. let's bring in tom mackenzie who joins us out of beijing. what does this tell us about that? tom: it tells us that in the near term at least, it's fate

seems to be a little bit more assured although the dollar bonds continue to remain under pressure because there isn't that long term plan. what we saw was china's biggest state owned lender, icbc coming out according to people familiar, according to bloomberg reports, and extending a loan to china's number one bad debt manager to pay off this bond that was due on tuesday. so that has happened. it has covered their backs at least for that deadline that they met. continuing concern about whether they will have to restructure their debt remains in that concern for the moment remains focused on the offshore dollar bond market. versus the domestic bond market. that's because it has 20 billion u.s. dollars in terms of offshore dollar bonds that will be maturing in the next few years and that they are going to have to pay down. it comes after they downgraded their credit rating after the

company missed its earnings and the deadline. the issue for investors is there is a lack of clarity from the regulators, from officials, here in beijing, about the long-term plans for this asset management. >> meanwhile, the e.u. looking to restrict some chinese backed mergers. without the relationship with strong, even the recent investment deals, so what is going on here? tom: they did sign that e.u.- china investment treaty and then they had sanctions and counter sanctions. so relations have actually dipped since the signing of that trade deal. we know the european commission is looking to shore up its borders when it comes to mergers and when it comes to investment by state backed and state-supported chinese companies that have the heft that may be some of its european companies and competitors do not. this is an issue that e.u. firms have long complained about, cheap credit, cheap loans come

along extensions for some of these companies which means the e.u. cannot compete. they are looking at levying fines on some of these chinese companies and in some cases, blocking mergers. the fines could amount to 10% of annual revenues. this is still the plan. it would need to be signed off by e.u. governments but already, the chinese business lobby that has exposure to europe has pushed back and they don't like the sound of it. this is tying into a more protectionist mood in brussels on the back of what we saw in terms of that rupturing of supply chains and also the capitals of paris and berlin, germany and france, wanting to ensure they can build out and support their own european national champions that can compete with china and europe. it is within that context. shery: tom mackenzie in beijing. let's get a quick check of the latest business flash headlines. jp morgan is the first major u.s. bank to mandate a return to offices for its entire american

workforce as soon as july appeared in a memo, staff were told they will need to return on a rotational basis. rotations will be subject to a 50% occupancy cap until u.s. authorities revise existing guidelines. starbucks global sales missed estimates despite strong u.s. results and an improved full-year outlook. global sales increased 15% but fell short of a 17% estimate, reflecting pockets of weakness in the global recovery. that measure rose 91% in china below the 97% estimate while stores in the u.s. narrowly beat the forecast. and do not miss some big interviews coming up on bloomberg markets. we get the outlook for asia from the chief economist, plus insights on the virus crisis in india with one of the country's top doctors, chairman, and -- this is bloomberg. ♪

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shery: breaking news out of south korea. we are getting sk hynix reporting results, operating profits coming in higher than analysts estimate at 1.3 2 trillion won, a gain of 65% year on year and also beating expectations. sales also growing 18% on year, coming in at 8.4 9 trillion, also beating expectations, consolidated net at 990.45 billion won. we are getting a little bit more

details on the future outlook, sk hynix will be increasing to respond to 2022 demands. they see the ramp it growth demand at 20% growth for this year. they expect a tight supply dynamics in 2021 as well. we were watching what's going to happen with the growth given that we have seen some weakness in prices there. growth demand at mid 30 plus percent level in 2021, so we could see a 30% plus growth in 2021 for demand. they expect recovery to go faster than expectations. we will be watching the earnings call in half an hour's time and we will be watching that inventory situation for the second quarter as we continue to get those numbers out of sk hynix. earnings continue to be a dominant theme as you can see

right there. in china, over 1000 companies are set to report this wednesday alone. our coanchor, david ingles, joins us with the latest. before we preview what's coming up, take us through some of the highlights in the last 12 hours or so? >> good morning. it's probably good to set up -- that's a good point. overnight -- the biggest consumer stable company, the biggest stock on the shanghai composite, csi 300, reported earnings. the key takeaways you have growth. you are looking at substantial markets for that company but that's basically a function of them not being able to raise their wholesale prices although it gets more expensive. you have other companies. yum! china was out with some -- you can see that on your screens. capex roughly unchanged. you don't see it on your screen.

yum! china, a couple of hours back, 91% up. that missed estimates. 97% was the estimate. that's basically being semantic here. haidi: lots coming up today as well. what are you watching? david: yes, well, a ton of companies. that is an understatement. i'm just looking at my bloomberg. 1200 companies, roughly speaking, between the shanghai composite and shenzhen composite are reporting earnings today, and here's a brief look at some of the big names, everything from the big banks kicking off the big four, hkex which will be very much in focus given the pipeline of listings. when you look at that, we have a preview on the bloomberg. we are expecting record bps and the forecast for the rest of this year and also will continue to be revised higher.

it's going to be very busy. shery: tell us how far along are we? the results are being related to the forecast so far. david: it depends on where you look. when you look at revenues for example, slight majority, about 55 to 50% of shanghai composite companies where we do have data have beaten on revenues. profit that goes down to below 40%. to answer your question on where are we, we are halfway through, and by the time we are done for today, that's going to be quite substantial. 700 companies have reported so far roughly the 1500 companies. shanghai composite index. haidi: david ingles with a preview. let's take a look at what we are watching in the markets now. sophie. sophie: just waiting on the

screen to show us what is going on with the set up here in asia. futures .2 muted gains this wednesday. s&p e-minis edging slightly higher as we saw the change on tuesday while the nasdaq faltered with a focus on the mega cap tech earnings. we will get an update. we had trading updates. in the bond space, aussie bonds heading lower. first quarter inflation numbers from australia. if there is an upside surprise, that might benefit the aussie dollar on your differentials and while cpi is seen trending above target in the coming months, base effects down under. the central bank is likely to consider this to be transitory and with that, pulling up the chart, we have seen reflation bets for solid economic data in australia and the shift away from pricey tech plays having helped australian value stocks maintain a winning streak, set for the longest run of monthly gain since 2000 nine with the

msci value index up about 30% since the end of october considering the 7% rise we have seen for the growth index, haidi. haidi: softbank has used almost all of its dollars allocated for share buybacks, raising fears of an end to the bull run. they bought over -- in the past year through march. bloomberg's calculations so the program -- show the program may run out. joining us now is the person who covers softbank. what does this mean for the company? >> -- haidi: all right, we will try to get back with pavel. coming up next, personal changes afoot at nomura following that loss on trades. we will get some insights.

this is bloomberg. ♪

vonnie: this is "daybreak asia." i vonnie quinn. the united states has made stunning progress in the fight against covid-19.

speaking at the white house, he said 215 million vaccine doses have been administered so far. he urged anyone who has not been vaccinated to do so, pointing to new guidance that allows inoculated people to socialize outdoors without masks. pres. biden: the bottom line is clear. if you are vaccinated, you can do more things, more safely, both outdoors as well as indoors. so, for those who have not gotten their vaccination yet, especially if you are younger, or think you don't need it, this is another great reason to go get vaccinated. now. now. vonnie: u.s. health officials say they are examining cases of rare blood clots tied to johnson & johnson's covid-19 vaccine. one case involves a male and the other involves a female, both younger than 60. the new report brings the total number of cases to 17, this out

of 8.1 million doses administered in the u.s. the european commission is seeking authority to levy fines or block deals by foreign, state owned companies. the proposed rules obtained by bloomberg seek to answer complaints from european businesses that chinese state backed firms can get support. chinese business groups have already complained about the draft which could change before it is set to be proposed next week. prime minister justin trudeau has told the bloomberg green summit that canada will meet its target to reduce emissions by 2030. that is the record of missing its previous climate goals. recent data showed canada was the only country to see harmful emissions actually rise between for 2015 and 2019. >> it's also about consumption. it's making sure that canadians are consuming less fossil fuels.

we are going hard towards zero emission vehicles, investing in retrofit, making sure that people have better public transit. those kinds of investments reduce our fuel consumption but so must the world. vonnie: 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. >> let's get back to our softbank story about how the company has used almost all of its allocated share buybacks. let's get back to our reporter who covers the company. what are the implications, if you will, of the money running out for more and more of these buybacks? >> the buybacks were announced about a year ago in multiple stages. right in the depths of the coronavirus pandemic. but since then, the company has burned through roughly 20 billion of the allotment and that's be fair, it was extremely affecting in polling shares out

of a deep corona slump. the stock more than doubled. it is trading near a two decade high. for every billion masayoshi son spends buying back shares, he added more than $6 billion in value to the company. buybacks are already losing power and march is the case in point. they spent $10 billion on repurchases but ended up losing $11 billion in valuations and now there's only 10% of the allotted capital left and that is likely to run out in the next couple of months so without that wind in its sales, we will likely see the famous corporate discount big into reemerge. shery: on may 12. could we see another buyback being announced then? >> it is certainly possible. it is pretty much at every month, he was announcing another $500 billion buyback. almost never letting the

well-run drive so there's certainly a segment of the market which things he will do this again. the only problem is that the earnings will be stellar this time around and the company will record the biggest net income for any japanese company in the history of business. its vision fund business will have a third quarter of record profits thanks to the ipo. they might want to stagger the good news a little bit. one thing for sure is softbank has plenty of cash to spend. they have over $40 billion in cash and equivalents sitting on the balance sheet. haidi: we are also seeing investments doing pretty great. is that really supporting the share price performance when it comes to the vision fund business as well? >> it certainly has helped. i mean, considering how negative news in the business was such an anchor and drag on the share pricing, talking we worked, oil, some of the more funny names.

the question is whether these record profits can really continue. there are a few more large ipo's in the pipeline. even we work is going to find a way out. but probably none will deliver the kind of return that they managed to do this past quarter and of course, if markets become less receptive to ipo's, over 160 companies, most of which are private, will look a lot less enticing to people considering softbank shares. shery: -- haidi: we will be watching numerous when trade -- nomura when trade kicks off. they have suspended executives as it continues to deal with the fallout. they posted a first-quarter net loss of 1.4 billion dollars, the biggest since the global financial crisis. joining us now is a senior

executive at morningstar. let me show this earnings picture falling off a cliff. it was meant to be a pretty good year for nomura, and in fact, it has come out, as we know, how the story has gone. is it surprising that their strategy going forward remains the same given the hit that they took? >> yes, i think that, at least to me and probably some others, that there is a surprise that nomura does not seem inclined to make any adjustment in its overall strategy in response to this incident. they have their investor day scheduled for may 12 so rather than yesterday's earnings news, that would have probably been the forum where if they were going to make some strategic adjustments, that they would announce them and we do not know yet, but based on the tone of the comments yesterday for management, it seems that number a -- numura sees no reason to

make any changes. haidi: so when it comes to her their u.s. business, do you have -- to their business, it's just the status quo. this is being seen as an unfortunate blip. is that something that is going to be accepted by investors in the stock? michael: this has been a long-running story for nomura . it is basically its strategy overseas. given that the u.s. is roughly half of the total global people, certainly, overseas, that will be weighted a lot towards the u.s. market, and so, you know, nomura, for more than a decade, has been trying to increase its presence in the u.s. market and you know, sometimes, they do quite well, but then we also see things like this loss where it's just not -- it is not very

stable, and on average, the returns are not that good. i think that is reflected in nomura's share price. i think nomura is sticking to what they have been doing. shery: volatility has been a boon for trade desks. this chart showing how the vix has really remained muted, pretty subdued this year, and is nearly back in that 2028 volatility range but not quite. what does this mean for nomura? michael: so one of the things is although we have not seen any big changes, for the new ceo, this was going to be a great first year for him and unfortunately, his first year ended on a sour note. for the near term, you know, the business environment for nomura was quite good. the investment banking pipeline is fixed. so one of the indicators i do

look to try to gauge how nomura is probably going to do is the vix. the worst for a company like nomura is the vix is around 10. if we go in an environment where there is not very much volatility, nothing is moving, and of course, the vix is very high, usually, the markets are falling, and that's not very good. i think for the near term, you know, you do not go immediately from 25 to seven in one day. for the near term, we have a good level of volatility which is good for trading at as well as the good investment banking pipeline and good asset prices. but you know, looking out two years or three years, the environment might not be as good as it will be -- it is likely to be in 2021 that it was in 2020. -- than it was in 2020. shery: how does it compare to other banks like mitsubishi and

mizuho? michael: one of the most direct competitors i use for nomura is daiwa. similar to nomura, its focus is on securities business. mitsubishi and mizuho, they have large securities businesses. because they have even larger banking businesses, they tend to have somewhat different trends. they have generally around the same average or it might even be slightly higher. despite its smaller scale. but the big difference that i see is that nomura's results are much more volatile than daiwa's. it is quite stable and they have done a good job of reducing risk and i think that is starting to shuffle their returns. they have not really -- they have not successfully generated a higher r.o.e. and yet there is

a lot of volatility. i think really the onus is on nomura to show they can generate higher average returns and that we are not going to have a case where every time we have a good year like 2020, it's going to end and losses like this one. haidi: michael from morningstar. we are just awaiting japan retail sales numbers. in the meantime, take a look at what we are seeing when it comes to trading in the japanese yen, looking like a pretty muted start to trading in tokyo as well as across broader asia, generally, as investors continue to pass some of these big tech earnings. we are getting retail sales year on year, that march number is much better than expectations 5.2% against an expected 4.7% and bouncing back from the contraction. month on month, that's a gain of 1.2% and a bid on expectations. department store or supermarket sales, we are seeing a gain of

three percent, less than expectations, missing the target of 5.2% but still, a rebound of a contraction of 5% in the previous month. going forward, that resilience will be tested given that we see tokyo and surrounding major areas in another state of emergency on account of the virus situation there. lots more to calm on "daybreak asia -- to come on "daybreak asia." this is bloomberg. ♪

haidi: a battery maker is

gaining attention with its claim to have built a next-generation battery that promises to extend the ev's range while reducing charging times. it has been a target of shortselling attacks. they recently called the company a scam. the ceo spoke exclusively to bloomberg. >> if getting a third-party to test ourselves would get rid of these kinds of random, you know, attacks, it would be something we would consider. do you really think that if all the data we had shared had been generated by a third-party app that they would have been different about that? that report was not interested in the facts. first of all, i want to be candid. there is a legitimate short thesis you can have. it demonstrates amazing results in terms of the capability, but

they have yet to scale up production and the factories. those are uncertainties. somebody can say that it will be harder than they think. we do not argue with that. the problem is that is not what the short-sellers are doing. they shorted it on a wednesday. on thursday morning, they published a report for love lies, misinformation, and innuendo. later, the stock price dropped. he probably covered his short already so he was gone from the markets. this had nothing to do with a belief that the risks were fundamental. this is about market manipulation and that is what i have a problem with. i'm not sure a third party lab, having tested these results, even all the data in our presentation, would have changed that particular scenario, but i will be honest with you, we do not intend to have our strategy be driven by a random short-sellers looking to profit

on the markets. however, we, you know, the question is for people like you who are legitimate observers of the industry. if it makes you feel more confident in the data, that is something we will consider. >> what do you imagine the future of lithium i am batteries, not 2025, but 2030, and 2040? >> i will make a couple points here. one is that because chemistry is so, you know, long-term in nature, they don't change rapidly, again, lithium ion has been around for 30 years. we went through the incremental changes of that. it is impossible that lithium metal could drive another few decades worth of battery technology with relatively small improvements to what we are doing today. we think what we are doing is so fundamental that it could be the

basis for the next 20 years of battery improvement or beyond. >> speaking exclusively to bloomberg. that was at the bloomberg green summit. japan, south korea, coming online. let's turn to sophie. sophie: we have a bunch of earnings on tap including from sony. solid 2020 results. we could see a cautious guidance given the reopening we are seeing across sectors globally and we are keeping an eye on these names as well on news that they plan to triple the network in the country by 2024. we are watching japan's steel industry with names reporting amid the rally in steel prices that had margins on the global rebound in sectors like construction. one of asia's biggest excavator makers, hitachi construction, sees a recovery to sales fueling a tripling of profit in the year

ahead even as it turns cautious on the outlook in china, shery. shery: japanese futures under a little bit of pressure. the tokyo, sydney, and seoul opens our next. this is bloomberg. ♪

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♪ shery: welcome to "daybreak asia" from bloomberg world headquarters in new york. haidi: asian markets just open for trade. asia is set for a steady opening. also in play, a renewed run in treasury yields and soaring commodity prices. saudi banks have been getting government calls to support power.

it is stressed debt manager got a helping hand to repay its offshore bonds -- a distressed debt manager. and india's surge in coronavirus cases puts the economic recovery at risk. shery: let's turn to sophie kamaruddin for what to watch. sophie: we are5 in asian markets. you had tokyo stocks -- we are in asian market. tokyo stocks opening on the downside. check out the yen, treating their one-week low. looking to the boj monthly bond buyback report due out later this evening. we also have data of note from japan, retail sales in march registering the first real rise in four months. in south korea, we have consumer

confidence strengthening in april, and accelerating. we see some downside moves, but the cosby little changed -- the kospi little changed, this despite the beat we saw in first quart of profit on better than demand pc's and service. we are keeping and i on commodity players for the raw materials sector, staying elevated. the outlook for margins and also a retired class that may get passed on to consumers. the asian market opening little changed while aussie bonds are heading lower at the opening. treasuries looking to trade rage -- range bound with japan likely to curb treating activity. 10-year tips jumping to a 20-13 height on bets that inflation will fuel stimulus on monetary policy and the risk of tightening inflation, so it will

become a headache in india for the rv on this as they prioritize curbing price pressures over keeping borrowing costs low. opec-plus anticipating strong demand for oil despite that picture in india and dovish pressures this morning. haidi: let's get more on the outlook for india. i want to bring in a portfolio manager at j.p. morgan asset management. great to have you with us. there's the commodity side of things in terms of the amount of crude that india imports, but when it comes to a result of it being a beneficiary of the chinese economic recovery in terms of trade flows, does the virus situation change your view for india? >> yes, admittedly, the second wave has been a big surprise for

all of us. it is not ideal, but that does not change the longer-term outlook for india, and given how hard it was hit with the first wave, the government is now intensified to pursue structural reform, especially to attract more sbi. our long-term outlook has not changed, but in the short and near term, earnings will have to be revised down. shery: what sectors are you liking across the region? particularly when it comes to india and indonesia? >> we continue to like the health care and pharmaceutical sector. this has been a core sector for us in the long term. it has benefited from the pandemic, but we still see the, very attractive businesses in the sector with decent valuations. another area we like is policy

cyclicals, so even though the earnings revisions have been led by cyclical sectors in the past six months, among the cyclical sectors, we focus on quality companies that have both cyclical and structural tailwinds. these are sectors such as the china industrial automation sector where penetration is still very low across industries such as auto, health care, and food packaging. haidi: hold on a second. we have nomura starting to trade at the second. we know that they took a big hit from the debacle. we are seeing the stock gaining ground. they created their global ambitions. the ceo said japanese clients

are interested in -- japanese client interest in overseas markets is very strong. the stock is now gaining as they are set to address 97% of those client losses, but talking a little bit more about banks, this happening in the u.s., you talk about liking some quality cyclicals. this chart on the bloomberg just showing the banks against semiconductor ratios, and banks are becoming a bad at relative to the chips, the ratio in a massive downtrend right now. what is the situation like across asia? is this a different picture with banks perhaps being more likable than what we are seeing here? >> within asia, i think you have to think about the young versus emerging market banks. we tend to prefer the emerging market banks where they have policy management, and again, a very attractive long-term

outlook. for example, india, indonesia, these are countries that are still very much under banked in terms of the population. digital convergence is being done by these large banks in these countries, so i think the story for the developed market and emerging market banks are different, and among emerging market banks, we prefer the quality banks that are privately owned. shery: in your notes you say you reduced semiconductor exposure. given that we do still have the chip shortage, why? >> again, near term, i think sales will continue to be strong. we have no doubt about that, but when you think about the industry, everybody is having to

raise capex, and for example, txemc will have to invest in the u.s. if that will remain as attractive as the past remains to be seen. we thought it prudent to reduce our position. >> it was great having you on. let's turn to vonnie quinn with the first word headlines. vonnie: sources tell bloomberg president joe biden is planning to issue an increase in the capital gains tax. the american families plan to be

unveiled wednesday will, however, and a major benefit for wealthy estates. president biden says he spoke with prime minister narendra modi to discuss when the u.s. will be able to send covid vaccines to india. the president says he intends to do it but did not specify a timeline for a decision or for shipment. biden says the u.s. is providing aid in the meantime, including therapeutic drug remdesivir, and be machinery for vaccine distribution. australia banning all flights from india until asian 15 until the nation comes out of what prime ministers scott morrison announced -- described as a terrible crisis. morrison called the number of cases diagnosed in hotels and originating in india concerning. the european commission is seeking authority to levy fines

or block deals by foreign state-owned companies. the proposed rules do not mention china directly but do seek to end the campaign for european businesses. chinese groups have already complained about the draft, which is set to be proposed next week. global news 24 hours today on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. haidi: still ahead, health in focus. coming up next, the economic gap between china's northern and southern regions. we discussed the implication for policies and growth. this is bloomberg. ♪

shery: the economic divide between china are prospered --

china's prosperous southern region and lagging northern region will continue to grow. the split will have huge implications for growth, debt, and policymaking. the pandemic further worsened regional disparity. let's bring in our greater china executive at her. when we talk to economists, they continue to point to the uneven recovery happening in china. how serious is this? john: this is a problem that existed before the pandemic. the north of china, back during the revolution when the communist party took over in 19 29, that was probably economically the strongest part of china. it had cold. it had steel. as time has changed, that focus has moved on to tech and the consumer and other parts of the economy, so the north has really lagged behind. moving forward with this goal of achieving carbon neutrality by 2060, you can see that squeeze

on those industries -- coal, steel, metals -- become even more pronounced. haidi: the bifurcated growth, as you say, has been a longer term, but how has it affected going forward the balance policymakers will have to strike? >> the problem you have if you are the central bank is what is an economic policy, what is a monetary policy that fits a country where one part of it seems to be thriving and another part is sort of stuck in a continuous downward loop? it is really hard as a policymaker to have a prescription that is one-size-fits-all, so i think while the south and coastal areas might be doing well, there might be reason to maybe start to rein in policy a little bit. the north might be struggling so much that they still need that moment -- that monetary support. shery: monetary policy, really

having a one-size-fits-all approach is really hard, but what about fiscal measures coming from the government, especially different localities? john: one of the big campaigns china is on right now is to rein in debt, to improve prudence in terms of spending by local governments. that entails it local government-owned enterprises get into trouble, the central government is trying to let people know that you should not expect beijing to step in and backstop these companies. we have seen that with a number of soa's -- number of soe's defaulting this year. as that trend moves forward, you can see more trouble popping up in the north needing more attention from beijing. haidi: our greater china executive editor with that story. we get to a bloomberg scoop now.

iebc may have helped distressed debt lender huarong pay back its debt. i suppose this provides one piece of the puzzle in terms of what the company faces when it comes to government sanctioned support for their bonds. >> exactly. that's a very good way to put it. it is one piece of the puzzle. what we are talking about this morning is if this is good news for bad news, and it is not quite clear. the bond market continued to drop late yesterday even after we reported this, so the positive read on the news is essentially that the government support from china will extend to offshore debt. in other words, even in a potential reduction, it is unlikely to hang investors out to dry. this was the concern that central governors would support

it only when it came to its onshore liabilities, so this, obviously, suggest that chinese lenders are heating beijing's call to extend loans to help companies both offshore and onshore refinance debt, but the negative pace really considers why china huarong really needed help in the first place. if the company was operating normally and had the ample liquidity the regulator has been talking about, and it has been saying the company does have the cash to service its liability, then why did it not pay the singapore dollar note on its own with this cash? why did it need support from i tbc? it could be a sign of china huarong's weakened capacity to make good on its bond payments in the short-term. >> we are seeing also reports of beijing investigating ant

group's ipo approval process. what is this about? >> the idea is why was this so fast? this was a company currently in beijing's crosshairs, and it was a part of jack ma's storied empire. why was the approval so quick? the sense here is that the stock exchange and the securities regulator were so keen to get a company of this size. remember, based on its valuation, it was going to be the world's biggest ipo, and that is a big win for the star market and starboard, a new stock listing venue in shanghai. this was seen as a big win, so who accrued it? why was this so quick in a country that is known for taking

months, even years to approve first share sales? there is another report our bloomberg intelligence colleagues wrote that a valuation could be as low as 29 billion u.s. dollars. evaluation before the ipo when we had that hype around and's listing was 320 billion u.s. dollars, so that is a big, big drop. haidi: coming up next, we will get the details of earth quarter earnings results from sk hynix and what they tell us about the global semiconductor shortage. this is bloomberg. ♪

haidi: korean chipmakers sk hynix is falling up a reporting better-than-expected profit on the first quarter on strong demand from pc makers and data center operators. it is planning to increase capex

later this year. we continue to get more details from that earnings call. sk hynix saying serving -- server demand will recover from the second quarter, that the pc market will achieve rapid growth at over 10%. everything they are saying and their results seem pretty positive, so why is the market reacting this way? >> it's a good point. financial reports were pretty strong for the last quarter, particularly, as you mentioned, for makers coming back from memory chips in the auto industry, consumer electronics, etc. they did say they will increase capital spending in the second half of the year to try to meet this rising demand, though, which i think is one of the things that investors have latched onto. they are going to put more money into capacity to increase the production of demand chips to be

able to meet this demand that is going to cost some money, and that may be a little bit of a depressing force on their earnings in the second half of the year. haidi: what else out of the numbers stood out to you? >> heinrichs is one of those companies that kind of sits early in the technology supply chain. it does not get the kind of attention that, say, samsung does, but it is very critical in supplying memory chips to many different industries, and what the results are showing us is that there is a pretty forceful rebound from the coronavirus pandemic where technology makers in the pc industry, also in data centers where you get cloud services, are building capacity very quickly because they are seeing strong demand.

are seeing that in other sectors of the economy, too, including consumer electronics. automakers cannot get enough chips. we have had these kind of product chip shortages throughout the industry, and they are investing heavily to try to step up their production capacity to try to meet that demand as demand comes back pretty strongly across the economy. shery: sk hynix saying second-quarter market conditions will be favorable in all applications and they will begin mass production of 176 products this year. going into these earnings, going into the earnings calls, there were lots of questions about nand pricing as well, the inventory situation there. what do we know so far? >> they talked a little bit about inventory. the investor call is going on right now, so more details may be spilling out even as we

speak, but they did say that they expect companies to have a drop-off in inventory levels and to try to build them back up quite rapidly across the memory market, so they anticipate pretty strong demand as customers buy up those memory chips. prices have been recovering, and they expect demand to come back pretty strongly. haidi: our asia tech executive editor there on those earnings. let's get you a quick check of prices in the meantime. microsoft seeing strong demand for the cloud computing services and the biggest quarterly jump in pc shipments in over two decades.

net income -- microsoft shares have gained over 50% in the last year, and its market value now approaches $20 billion. google parent alphabet reported first-quarter sales topping estimates, thanking digital ad spending by businesses. youtube ad revenue boomed as people stuck at home during the pandemic watch more videos online. google's cloud computing business increased on surging demand. softbank dedicated almost all of its revenues to a share buyback. bloomberg calculations show the program may run out as soon as next month. the effort has more than doubled the value of softbank's stock.

and when company making a bet that will be goers will return to one of the world's largest moviegoing markets. the highest revenue per screen globally, it also released -- made a deal to release five more films. coming up, the issue of vaccine hoarding. how wealthy nations buying up vaccines may have contributed to the crisis we are seeing. this is bloomberg. ♪

vonnie: this is "daybreak: asia." president joe biden says the united states is making stunning progress in the fight against covid-19. speaking at the white house, he said 200 15 million vaccine doses have been administered so far, and he urged anyone who has not been vaccinated to do so, pointing to new guidance that allows inoculated people more freedom outdoors. >> the bottom line is clear -- if you are vaccinated, you can do more things more safely, both outdoors as well as indoors, so

for those who have not gotten their vaccinations, especially if you are younger for think you don't need it, this is another great reason to go get vaccinated now. now. vonnie: opec-plus has recommended proceeding with plans to gradually increase oil production as global demand recovers despite surging infections in india, the world's third-largest importer. a committee led by saudi arabia and russia agreed to schedule a full-scale meeting and press on with its plan to increase supply. the alliance attempts to restart about 2 million barrels of output over the next three months. prime minister justin trudeau has said canada will meet its new target to reduce emissions by up to 45% to 2000 five levels by 2030. that is despite his country's record of missing previous climate goals.

recent data shows canada was the only country in the global seven to see emissions actually rise between 2015 and 2017. >> is not just about the oil goes themselves, but also about consumption, making sure canadians are consuming less fossil fueled. we are working hard to invest in zero mission vehicles, working hard to make sure people have better public transit. those type of investments reduce fuel consumption, but so, too, must the world. vonnie: china is set to show its first population decline since the famine that came with the great leap forward in the 1950's. "the financial times" says the latest financial census is expected to put the global number of people at less than 1.4 billion. the survey was completed in december but not released until april. global news 24 hours a day and

on bloomberg quicktake powered by more than 2700 journalists and analysts from more than 100 20 countries. i'm vonnie quinn. this is bloomberg. haidi: let's look at your markets. sophie, what are you watching? sophie: we are seeing a mixed picture in asia. sony and outlier, gaining ground ahead of its earning report -- sony and outlier -- sony an outlier. the chip maker announcing plans to boost capacity spending. switching out the board ahead of the fed decision on the dollar in versioning -- in early asia, you had asian dollars holding gains while we see treasuries pretty much steady with the u.s. 10-year yield holding around april 14 highs. societe generale noting the

market has two focus on a more realistic long-term path. they are holding off on tightening until dated dictates otherwise. you have the korean won leading the decline in asia and the rate of retreat ahead of malaysian trade data due for march. pulling at the terminal right now, the export boom continuing to hum along with hong kong the latest to report record shipments for march, and even taking into account base effect, you have bloomberg intelligence suggesting underlying momentum will stay strong in asia and when it comes to developing asia, the economy rebounding faster than expected this year although the pace of recovery is seen diverging. we could see growth this year for india, though that is at risk, given the surge in cases we are seeing for the country. shery: let's delve a little bit

more into that. for months, the economy has been looking for materials to make the vaccine and now are being forced to act as this explosive outlook in india is giving rise to mutations that could threaten the world. we have seen the u.s. limiting some exports of critical raw materials. how bad is the vaccine shortage right now in india? >> when india began its program, it was highly optimistic. it is struggling. india has now at this point in the pandemic fully vaccinated less than 2% of its population. this is at odds with its own

status as the world vaccine powerhouse. some of that responsibility lies in the fact that more critical raw materials are needed, but that has changed. the united states has promised to these supplies of both the components needed for vaccines as well as share its large supplies of the astrazeneca vaccine. india has 60 million shots it has been sitting on which are not cleared for america. this week, president joe biden has decided to share that astrazeneca stockpile with countries including india. we do not know yet in what

quantity india will get the vaccine. shery: at the same time, we know the agreement had india producing up to one billion vaccines by the end of 2022. is that agreement still standing, given everything that is happening within its borders? quickset agreement stance. there has been no talk -- >> that agreement stands. there has been no talk of that agreement being phased out, but given that they had to pause vaccines. when india started vaccinations in january, it was with grand promises of sharing the vaccine with the rest of the world. and it exported some 16 million doses up until march, but we are adding almost re-hundred 50,000 new infections a day. that has led to concerns about

shortfalls. there is anger brewing about that, so how all of this plays out i think will depend on the pace of the pandemic. i think a lot of this is up in the air at the moment. haidi: really great to have you with us. we will have ongoing analysis on india's covid outbreaks. some big guests coming up in them -- coming up in a moment including adp's chief economist and we will be joined by one of the country's top doctors. coming up next, we will be discussing the health of chinese banks ahead of earnings reports.

this is bloomberg. ♪

haidi: looking to boost wealth management business in asia and boost headcount in mainland china. a strategic reboot for asia remains untapped.

>> the bulk of our profit continues to be in asia and the bulk of our growth opportunity is definitely asia, so shifting three of our four global business chief executives to hong kong is a very logical move for us. we are going to continue to be based here in the u.k., which is headquarters, and we will increasingly run the bank as a dual model across hong kong and london, but definitely for us, shifting our capabilities of asia is a clear strategic priority. we think we can get great returns down there. rishaad: on top of that, you're going into china in a big way again and the greater bay area around hong kong. it presents a huge opportunity for you. how many people do you think you will need to hire, or are you already right size given the

strategic plan you have in place right now? -- where are you already right sized -- or are you already right sized? >> we have hired about another 100 wealth advisors in the first quarter and expect to hire another 500 during the remainder of the year as part of a multi-your program to build a much more significant wealth presence in china, so i think you should continue to expect us to add headcount and capability. rishaad: we have citi divesting assets. would you be interested in picking those up? >> our primary focus is picking up wealth. i think the citi assets that our spectrum. we are looking at other opportunities in the region, but predominantly in the wealth space at the moment. rishaad: you are hiring in this

part of the world, but what about in organic growth? is there anyone out there who is perhaps seeing some assets they would like to divest themselves of that you would look at in the region? >> certainly, if we see opportunities, smallish opportunities in the wealth space, we would look at them in the region and we are already actively looking at some opportunities. >> the underdeveloped -- the other development over the last few weeks that has dominated is huarong, and that has raised questions about risk management. has that affected any of your clients, and are you increasing risk management? >> as you would expect, we have done the full read across, but we are certainly looking into the situation and understanding what the implications would be for our foreign brokerage

business and our family office business, but i think we are comfortable with our risk appetite in those spaces currently. rishaad: does this signify in your view -- are you comfortable with where you are right now? i'm sure you're going to say yes, but what about mint them? do you have the moment to get over the strategic review and emerge confident, perhaps even more confident? >> two things went on this quarter, firstly global economic outlook improved materially, and second, downside risk in those markets that had progressive vaccine programs such as the u.k. and u.s. meant that we did see a big reversal in credit and actually had net growth banking credit this quarter. as we look out, i think we are

very confident about what we are seeing in terms of customer activity. we do think as we come out of covid, customer activity will be much stronger. we are already seeing a big buildup in our commercial lending books in asia. we are seeing continued strength in the mortgage books in hong kong and the u.k. and other segments like consumer credit, we think as confidence returns will improve as well. we are much more optimistic than we were a couple of months ago. haidi: hsbc's cfo speaking to bloomberg. there are more indications chinese lenders will back distressed companies after irbc -- after itbc is said to have helped huarong repay its debt. we have earnings also coming out

of chinese banks. leon, great to have you with us. chinese lenders again being asked to do the heavy lifting. what's the implication for the broader sector? leon: good morning. obviously, we have some cash flow issues with some selective players, especially, as you mentioned, for huarong. for china, the priority is always trying to shore up the systemic risk. china tried to engineer a very orderly wind down of these risks, and ultimately, they will look to the assets to repay these loans internally, but the priority is that they don't really want the market to have a perception that there is a systemic risk going on in the

financial system, but that case aside, overall, with the economy recovering strongly from covid, the whole sector is seeing significant asset recovery sequentially. we have seen an even larger magnitude of asset quality improvement. with the very slow earnings growth last year as the basis of this year, we are expecting an acceleration of earnings. shery: in your notes, you say chinese banks are at the beginning of a fundamental turnaround for at least two years. why? >> another interesting point to

watch, chinese regulators have started to crack down on the so-called arbitrage from internet platforms late last year, and this helps chinese banks to reduce dependency. on the other hand, we have started to see banks start to so-called merchandise their customer retail banks. the agreement has been rebounding. income is growing exponentially. as a quality name, it puts together a recovery, i would say a very strong rebound of the earnings program, and also major shareholders are actually

rebounding, which is giving even more security to secondary markets. that is why i think if you look at chinese banks over the last few years, we worry about asset quality, but now it is time to take a more progrowth approach. they basically offered an option of chinese economic recovery. our focus on china merchants and bank of china. just now, i mentioned that they have been doing a very dedicated way of customer merchandising. we have already seen the results.

in 2022, they are looking at tension, revenue, etc. retail banking has changed from a revenue focus to customer-centric. that is why when we look at financials, we are seeing 20% income coming down. there's capitalized earnings growth for the next few years. we will see even more of that. that is another rationale. we mentioned we are expecting asset quality rebounds across the board. it is more a proxy, and in addition, they have a sizable hong kong business, which is benefiting from the name and asset quality. haidi: we had a pause on the

deleveraging process. when you talk about clearing and improvement in asset quality, how long does that take, and how wide is the window, given a lot of people i saying what we are seeing with huarong is just a harbinger of what happens when you have too much debt reliance on businesses in china -- a lot of people are saying what we are seeing. >> i think contrary to the market consensus view, what chinese regulators are confident to expose for the issue and to show that that have sector wide asset-quality recovery, depends on the timeframe, i would say two years is probably a window

for regulators to do this deleveraging, given we are talking about a gradual recovery of the economy, given that was just the first quarter of our mpl formation going down. this gives a window to clear up the legacy asset quality issues. haidi: really great to have you with us. you can continue to bloomberg radio as well to hear more from the day's big newsmakers. now broadcasting live from our studio in hong kong. you can listen in via the app, radio podcast, or bloombergradio.com. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. korean chipmaker sk hynix reported better-than-expected results for the last quarter. they sent operating profit grew to 1.3 billion in march10 as tech companies stockpiled semiconductors. japanese gaming company but $100 million worth of it going in a move it says is its biggest ever currency by.

it paid an average of just over $58,000 for more than 1700 tokens. number -- numeral -- nomura suspended a brokerage heads of positions as well as the cohead of equities. its global credit heads will stay on but in a different role. they posted a net loss of more than one billion in the fourth quarter, its biggest since the global financial crisis. >> we are headed toward the chinese open. let's turn to sophie on what to watch. sophie: we have a lot of earnings for what to look out for. we will be keeping an eye on stocks on china after they search as a leading economist pushed for incentives for biggest family -- were bigger families. this as demographics point to an aging population on the mainland, which posted retirement challenges for policymakers.

we have also seen the birth rate slowing with the recent figures released for beijing, signaling that the population across the mainland will start to decline, possibly before 2027, and with that, switching out the chart, that could see india outpaced china as the world's most populous nation. the imf expects india will be the fastest-growing major economy this year. for test up a growth forecast of india of 12.8%. but that double digit growth may be at risk from the coronavirus outlook we are seeing in india. haidi: we get the outlook for asia from the abv chief economist, plus more on the coronavirus outbreak in india. that is it from "daybreak asia."

our market coverage continues as we look ahead to the start of trade in hong kong, shanghai, and shenzhen. "bloomberg markets: china open" is next. this is bloomberg. ♪

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>> is 9:00 a.m. in beijing and shanghai -- it is 9:00 in beijing and shanghai. i am tom mackenzie. david: i am david ingles. set to lend them some cash to pay an offshore bond.