>> welcome to daybreak: asia. haidi: i am haidi in sydney. we are counting down to asia's major market open. asia stocks were lower friday as investors digested big results from the u.s.. amazon sailed past amazon -- estimates well twitter tumbled.

chinese regulators imposed sweeping curves on 13 companies. and china's big banks see profit margins squeezed as policymaking there's leaned on lenders to contain debt. shery: breaking out of south korea. we are getting industrial production numbers for march. we are seeing a contraction of .8%. it is a contraction from a revised upwards number of 4.4% and growth in industrial reduction numbers. we did see another wave of infections affecting south korea in march so we had a recovery and a slump in march. this is coming out a when we see volatility in the numbers. we see growth of four point 7%, which is higher than estimates and also significantly higher

than february. all in all, we are seeing pretty strong external demand for south korean goods. we have seen manufacture confidence rising in may with samsung leading expectations. quarterly growth numbers turned positive so we will be watching that very closely. haidi: let's take a look at how we are setting up for the market open. what are you watching? >> u.s. futures are slightly lower after the s&p hit a fresh high in the wake of that solid report. here in asia, stocks are set for the best month since december. australia's are an outperformer in this space but it is taiwan that takes the crown, adding nearly 7% in april. today's report is likely to show

the economy growing at the fastest pace in a decade. with that pulling out the terminal, we're just about at the halfway mark when it comes to the asian reporting season. we take a look at companies, take a look at how we are faring when it comes to results. about 60% of companies on the index have beat on revenue while less than half have topped profit estimates with the biggest upside seen in the mining space. pimlico says this reveals a shortage of raw materials given that has creeped up across different markets. shery: let's turn to the big amazon beat. they encouraged investors that

their pandemic momentum is not waning. shares of after hours. -- surged after hours. >> a beat across the board but the market paid attention to that forecast where amazon said sales will be between 110-100 $60 billion. -- 110-116 billion dollars. if you look at the topline growth drivers, it is aws. yes it is a smaller proportion of overall revenue but it makes up a bulk of net income. when you see 20% growth in that unit or above, that's a good sign. a bit of a muted reaction in after hours. this was a significant upgrade.

i love that chart. 24 consecutive quarters of topline growth above 15% how many companies can say that? it is significantly above expectations. the question is, when the world returns to normal, what happens to amazon's e-commerce business? haidi: where there any surprises in those numbers? >> one surprise was amazon prime day. amazon has played around with it during the pandemic. one quarter it was near the holidays, one quarter it was near the summer. on the call, executives are considering doing that prior to the pandemic but what is interesting is these year on your comparisons. -- year on year comparisons.

what happens next quarter when we have those comparisons, it pulls forward with prime day and could boost financials in that quarter and will help ease that distortion. we know that jeff bezos will step down as ceo sometime this year. there is no detail because -- on how this transition will happen. haidi: let's turn to twitter because we had a guest today who said twitter is full of hot air. >> the forecast was tepid from the complete opposite story. the street was looking to the higher end estimates. you forget that in these tech

names, twitter makes money through advertising. early this week we had facebook and google who absolutely smashed it on earnings because they reported the ad market is strong. twitter relies very heavily on brand advertising and that is more susceptible to sociopolitical issues. brand advertising had a very slow start to the year. they are basically not feeling the same love as the broader advertising market is showing. haidi: great to have you as always, ed ludlow. you can get more on twitter earnings or big tech earnings if you missed out on analysis. you can get commentary from

bloomberg's expert editors. in china, editors have cast their nets wider in the ongoing crackdown on tech. they are imposing widespread restrictions on 13 companies. stephen engle took a closer look and joins us live from hong kong. >> this was not too much of a surprise. we have been digging into this issue quite extensively. these big platforms and all of these other ones as well that grew out from that duopoly are now being caught in the net and it pretty much shows that nobody will be scared. they are trying to curb risks and the mushrooming of surge in micro lending. . it is quite extensive lending.

and group became their biggest lender and became quite unwieldy and unregulated. now this crackdown is going through to the likes of tencent. they have a significant financial services arm, but all of the other one. -- other ones as well and these big tech services they provide. it is all connected by payments so the financial arms got a little bit too big and the government is cracking down. this latest government is cracking down on tencent and baidu, at least they have been summoned to this meeting.

they brought all of these companies in. tencent and bytedance, mate one -- meitwan, ride-hailing, food delivery, they were called in and given a long list of things they have to do. including folding them into a holding company that has oversight from the pboc. it includes ridding themselves of practices that put them in a monopolistic position, as well as putting themselves into financial holding companies. payment services have to return to their roots and must sever improper links to financial products, so it is an unwinding of all of these financial services that these big platforms and smaller platforms have added to increase revenue

because they have the scale to do so. haidi: how do those requirements compared to what they asked us? >> it is a good question. why were they singled out? aunt group has the biggest financial holdings, as well as they are the biggest leader in e-commerce. they had the biggest fine on anti-monopoly issues but the financial restructuring and has to be folded into is probably much more severe and longer-lasting and that is very much in line of what is happening. a lot of people extrapolated when they saw jack ma go quiet after the aunt ipo was scuttled.

-- ant ipo was scuttled. this proves that this crackdown is more against the risks to the economy then the risks from a single titan like jack ma. haidi: stephen engle, our chief north asia correspondent. let's turn to vonnie quinn. >> the indian prime minister's party appears to be trailing in exit polls in a handful of key state elections. polling indicates voters in the battleground state of west bengal plan to hand the victory to one of modi's main challenges. the elections are seen as a barometer of modi's popularity. germany, france, and other european parliaments are looking

to curb travel from india. there is no concern of possible coronavirus variants -- now concern of possible coronavirus variants in india. the united kingdom might add the u.s. to its proposed green list of countries as part of a plan to gradually reopen its borders. the head of london heathrow says progress on covid-19 vaccinations in both countries creates the possibility. singapore, hong kong, and parts of the caribbean are also being considered. singapore's mayor says the city is hoping to fully reopen by july 1. mayor bill de blasio says people from all over the country are going to flock to the city this governor. andrew cuomo now says he hopes

the city can fully reopen both for july 1. -- before july 1. global news, 24 hours a day on air, on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: still ahead, the all-time high for copper tops this number for the first time in a decade. and next, we speak to the quanta quote management senior analyst to get her outlook on why markets are in prove it mode. this is bloomberg.

shery: itshery: has been another blockbuster earnings season, especially for the u.s.. however, our next guest says growth expectations are not enough and investors want to see

activities improving. joining us next is our guest julia hermon. -- hermann. it is not just about growth but also about earnings. this bloomberg function is showing positive earnings, positive sales surprises. but we are seeing stocks under pressure. his the bar set too high? julia: thank you for having me. now that we are in april, markets are in what a call -- what i call a prove it mode. investors want to see it now. promises are not enough. same thing with earnings. i would also add that some of the market bumps we have been seeing in the u.s. and globally

really have to do with the inflation debate. investors want proof that this inflation we are starting to see is transitory and not even jerome powell can provide that. i would like to see some as we get debate in the second quarter. shery: the bar seems to always be higher when it comes to developing nations. julia: the inflation and recovery situation is very different across emerging markets. some of them seen incapable on delivering for those expectations. of asia has been a bastion of strength and companies like russia should benefit. even mexico is writing the

stimulus. the overflow from remittances and manufacturing is expected to spill over. haidi: when you take a look at the overall good results coming from tech, is there still an uncomfortable relationship between reopening, reflation, and the trend we continue to see? julia: the fact that tech got put into the stay-at-home bucket is a bit of a false construct. tech is the lifeblood of the global economy and prices have not fully recovered from the prices we started to see in february. a lot of that is ascribed to the crackdown we are seeing in china , but tech is telling a fantastic story in all of these

services. haidi: you have said it not to sweat china's liquidity squeeze. the property developers, huarong story, and then chinese banks coming under pressure to keep lending under control. is the deleveraging emphasis putting some of these opportunities at risk? julia: i am not sure it is a risk. it is meant to take risk. the deleveraging or de-risking campaign started in 2018 and it is really about that, trying to bring everything onto the balance sheet and is really where a lot of the tech regulation comes from. i'm not worried at all about the deleveraging story. china is well-equipped to

deliver strong growth this year. it did not contract in 2020, it does not have an output gap to fill, so it does not need to worry like other countries. this is a normalization of policy and i would describe others as a regulatory crackdown initiative in china. haidi: always great to have you with us. up next, china's biggest banks are moving beyond pandemic priorities to contain risks -- containing risks. that's ahead. this is bloomberg.

shery: china's biggest banks posted profit gains below 3%, with policymakers leaning on lenders.

for more, let's bring in tom mackenzie in beijing. how much does this way on chinese banks? >> chinese banks were hit by two things. the central bank to contain loan growth, but also the impact of the pandemic. they lended out to businesses that were struggling and now they are not coming good so they had high loan losses. the world's biggest bank by assets posted losses for the first quarter, in a quarter where you saw a record-breaking economic growth. you look at the other big banks within the banking sector, the bank, industrial bank agricultural bank, all of those posting profits below 3%. if you take bank of china out of

the equation, every single bank was hit by higher loan losses and that compares unfavorably with their foreign competitors. the people's bank of china central bank is increasingly concerned about risks. that's why going forward, they are going to have to curtail that lending. going forward, they're going to be looking at to what extent that loan-loss loss is going to continue, the impact on net interest margins, and how constrained they will be about growth that is expected to be less robust than it was in the first quarter. haidi: another ratings downgrade for huarong. seems like a little too little, too late.

>> they may have some questions to answer themselves. you are right, moody's coming out, the second big rating agency took what -- agency to cut huarong, citing concerns about funding availability in the market. the fact that they will find it additional to raise additional funds. fitch cut their ratings after china's largest bad debt asset manager failed to meet that deadline in terms of posting its earnings. the concern for investors and rating agencies is you are not getting much clarity from the powers that be here in beijing or their plans about this debt and asset management going forward. they have $23 million of offshore bonds that will come due in the next four years and

there is still no clear plan on how they will reap -- meet those debt regulations. so far, we have heard from a world where there is adequate the quiddity. -- liquidity. haidi: tom mackenzie there in beijing with the latest on huarong. this chinese property develope'' s bonds hit record lows over concerns about liquidity. they rattled investors by repaying investors with proceeds from an estate sale. some outstanding bonds are due next month and says they may consider selling a portion of themselves to investors. dbs group posted their first rebound in quarterly profits

since 2019. net income at southeast asia's largest lender moved to 1.5 billion dollars in the first quarter, a sound beat on expectations. up next, we ge

haidi: we are expecting numbers of japan, the jobless rate as well. we did see a pause when it comes to hear your ration in the labor market. -- deterioration in the labor market. we did see the end of the second state of emergency as well as government infrastructure spending supporting employment across the badly affected industries.

not sure how long that will hold for given that we are now in another state of emergency. the ratio coming in at one point one, slightly higher than expectations. cpi year on year, a contraction of .6%. that is more deflationary than expected, a contraction of 2%. with a out energy volatility and energy costs as well. we are seeing just a flat number when it comes to that inflation number. let's take a look at the market reaction, this as we see the yen holding pretty steady. what are you watching? >> japan is coming back online after the thursday break but we have a long weekend coming up.

the yen is just trading near a two-week low, this is after it reached the 109 level on the thursday session. we are waiting on more data on the pmi outlook. saxo bank is noting that the yen is spinning into the abyss after the event, and with the weakness in the japanese yen, we have seen the pair trading at a new cycle high. they're closing out short on the pair given their support for the currency, which has improved vaccinations in the eu. currencies have support in the region, the officer dollar is gaining ground but has not started to reach that 78 handle. shery: let's turn to copper. it has topped $10,000 per metric tom for the first time since 2011.

su keenan joins us with the latest. what are analysts saying about where we go from here? >> they are saying higher. to quote one analyst, it has been a remarkable run for copper in terms of magnitude and consistency and you will find that most analysts share the view that the all-time high is just around the corner. copper prices have doubled from the march low and you can see copper has been among the best performers where metal has surged the highest in years. but the bloomberg commodities index is set to have the best month in years. the new mining ceo is enjoying the rise. >> i am excited about having good exposure to copper at a time when they are going through that energy transition.

>> this minor, which mainly minds gold, is looking to increase its output. what is driving the rally are the stimulus measures, interest rates, and signs around the globe that economies are set to rebound in a big way. >> and it is not just the anticipated pickup in demand but also real shortages that are driving the rally. >> they are saying this is different from the prior cycle and that we are seeing real shortages of materials. if you look at the prices for coin and soybeans, a lot of the commodities are reacting to agricultural issues, but lumber futures have endured 85% year-to-date amid what is called

a lumber frenzy. there is sky high demand and the mills just can't keep up with orders. that's why we are seeing trading at the mercantile exchange open at a limit. that's where you are seeing a maximum gain in the commodity take place in the seconds before the market opens and that has been consistent now for several weeks. many believe the strong rally has real legs going forward. back to you. haidi: turning to the buyers in india, starting may 1, all citizens over the age of 18 will be eligible to get vaccinated. that's as the study -- country struggles with supply of doses and oxygen. it's very encouraging that the vaccine rollout is about to go

into overdrive, but does that help the situation on the ground ? >> unfortunately, it really doesn't. one of the things we have seen in country after country that is deploying these vaccines is that it takes weeks for vaccines, even once deployed, to get the second dose done, amped to get the impact of immunity showing up and decreasing case counts. india has been talking a lot about attempting to increase their vaccination rates, but it has actually fallen since the peak. at one point, they were administering around 3.9 million doses a day. they have had a substantial decrease in their vaccine rollout right as they are

dealing with this massive surge in cases. not only is it going to take a while for the vaccines put out the work, they are just not doing enough with them anyway. haidi: but also because of the critical material shortage in india. that's why we are seeing countries ask for this temporary waiver of intellectual property rights when it comes to pharmaceuticals. to be have any progress on that side of things? >> the one thing i will say about that is that those types of solutions are not going to be solutions to deal with the current outbreak india is dealing with. when you're talking about waving intellectual property rights and potentially making another type of vaccine or using another process, that's the sort of thing that is going to take months to scale up.

it is not a solution to a near-term problem. is it a long-term aid? perhaps, but when you look at the really dire situation in india, this is a situation where not only do they need to get their campaign ramp back up to make this better in the months to come, this has become a medical care issue when you are talking about oxygen shortages and things like that. it is kind of too late for all of these people who have been infected and are going to be infected. haidi: dave armstrong with his take on india. despite the slow road for the travel industry, airbus generated positive cash flow for the third quarter in a row. but the ceo says the rebound situation is still changing and challenging.

guy johnson asked him about their second-quarter outlook. >> it is too early to say and we don't have a very strong start. in the month of april, we see it moving forward so that is the reason. even for quarter two it is too early to say. we have been looking a lot at demand last year. it has stabilized overall, with complexity and mentioned before, but we are starting to look deeper at the supply chain. it is an area of focus to make sure we can have a good q2 and potentially a good second half of the year. but again, a challenging situation across the board. >> the airline currently has a lot of airlines parked.

what is the demand between passengers coming back and a pickup in demand for new aircraft? >> that is a very important question, and in fact there is not a single access to that. we have market segments with very different dynamics. when it comes to the bulk of our predictions, it is actually directly connected and when we see the tipping points in terms of passenger traffic in the single aisle, this will be a strong recovery in airplane delivery. on the white bodies, their is a different situation. there was already a large capacity before the start of the pandemic and we think it could take more time for our business to recover, and if i try to give a bit more color, the recovery

and tipping point for long-range travel might be in 2022. we think recovery for us will be in 2023, so you can see there is a bit of disconnect for us. >> in terms of new orders, you talk about deliveries. when will airlines be in position to place new orders? >> we have started to see the first indications in north america that airlines are starting to look at new orders for single aisles. that's in the u.s.. we think it will come progressively for the rest of the world.

it will come modestly in 2021 and then a much stronger way in 2022. haidi: coming up next, fresh off the back of a rather different oscars ceremony, we speak to a mackenzie partner about diversity in hollywood and across the entertainment industry.

>> this is daybreak: asia. beijing has imposed restrictions similar to those on and group on 13 chinese companies. firms were summoned to a meeting with pboc and other regulators. they said companies must restructure to allow for more rigorous supervision, including stricter compliance when listing abroad and anti-monopolistic curbs. china says's population grew in 2020, rebutting concerns. the bureau of statistics says the details will be released but does not specify when. china's birthrate has been declining steadily as the nation grows more prosperous and women's education levels rise. sources say japan is prepared to

back president biden's proposal for a 21% global minimum tax. they proposed taxing 100 of the world's biggest companies at that rate where they sell goods and services. it would boost revenue at a time when tokyo is concerned about its national debt. the pboc is leading the way to get an agreement by midyear. the food and drug administration is planning to ban menthol cigarette sales. it stems from a lawsuit filed to force the fda to make a decision on menthols. it alleges regulators delayed responding to their decision. the fda is facing pressure over their disproportionate effect on african-american groups. global news, 24 hours a day on air, on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

shery: six years after this #, a diverse roster of artists one awards this year. winners include some of these actors. yet a report finds that a lack of diversity in hollywood films is costing the industry $10 billion. i want to bring in sheldon, a partner at the firm, to discuss the findings in this report. when you look at these significant wins at the academy award, does that perhaps change the perception that casting or producing pictures that involve people of color have not a positive return on investment, because you are saying your research finds the complete opposite. sheldon: thank you for having me. i would say a couple of things. first, we should celebrate all

of the wonderful actors and actresses this weekend. we should doubly celebrate, because we can only imagine the number of dragons they had to slate to make it as far as they did. the next thing would be to wonder how many more of those creative's would we be able to see had these barriers not existed. haidi: you are saying that industries could get an additional 10 billion they are not getting if they would just address racial inequalities. how do they do that in ways that translates to these numbers? sheldon: absolutely. that is the number that got the most attention, $10 billion, and that came from what was in

effect a suppression of the market for a lack of content. number one is distribution. although black led projects outperformed, they were distributed in fewer countries. investments based on r.o.i. principles, we found that despite earning more per dollar in investment market, black led projects were heavily under invested's they got less in marketing funding. number one, the most important barrier is only 4% of all of the projects coming from hollywood was accounted for by black creators. keep in mind the population averages 13%. those three sources of inefficiencies is what came together to create this loss value. haidi: what exactly do you mean by black led projects? are you talk about actors, the creative forces behind them, or

any other element in that project? sheldon: there has been good progress. on-screen. behind the camera is where it gets more problematic, writers, producers, show runners and others. this is a place where the most substantial bottlenecks could exist. haidi: how does the film industry compared to other industries sheldon: they are underperforming most of their counterparts across sectors -- industries? haidi: they are underperforming -- sheldon: they are underperforming compared to most of their counterparts across sectors. not only is it an issue for folks working in the industry,

but also the impact hollywood has on popular culture and perception. haidi: when we talk about breaking down these barriers, it usually relates to widespread systemic change. how much change in progress can be made if you are just talking about one groundbreaking production company. sheldon: giving the depth and persistence of these problems, it will take a broad based solutions. knowing that hollywood is an ecosystem is not one company. it is a very difficult to be successful in hollywood unless

you are traversing and navigating multiple at -- multiple entities. for that reason it will be challenging for any one company to solve this problem. you need cross company collaboration. haidi: is it something that investors are asking for? sheldon: absolutely. and when you look at the loss value $10 billion, this is a spot where investors will be happening. it goes beyond public markets. private investors are always asking the question how can you make sure we are some projects that are proven to have demand in the marketplace? haidi: it was great having you. breaking news, we are getting japan industrial production numbers for the month of march. at the moment, industrial output

is 2% month on month. this is beating expectations it would actually contract. you're on your numbers are a major beat. we are talking a 4% gain year on year and it is much better than expectations of a contraction. we have seen disruptions to supply chains caused by an earthquake, not to mention a fire at the major japanese chipmaker. but the numbers are coming in much stronger than expected and the ministry of industry is saying output will rise 8.4% month on month and may output will fall 4.3%. we are also seeing strong exports to asia and that must have been a positive backdrop to these numbers.

march industrial numbers out of japan are surprising to the upside. plenty more to come on daybreak asia. this is bloomberg. ♪

haidi: moody's became the second major ratings firm to downgrade china huarong asset management. they said it was due to weekend

funding ability and uncertainty over its future. the move follows fitch, which lowered ratings on tuesday. china's largest lenders hosted a profit growth below 3% for the first quarter. all except bank of china also saw loan losses rise. they asked major lenders to curtail loan growth for the rest of the year on concern over bubbles. chinese banks benefited from the country's economic recovery after their worst earnings slump in a decade. this company beat sales and profit estimates in a strong start to 2021 with revenue rising. however, it put a damper on expectations, saying it a not be able to meet deliveries due to the shipment of semiconductors. shery: soph is watching some of

caterpillars asian rivals. >> japan's komatsu is among them. we had asia's biggest digger maker posting a rebound. we will have to see how conservative projections may be when it comes to recovery. we have seen mining machinery continue to be a bright spot. the outlook is looking sell at a given the order backlog of 2.5 years. the company is expecting higher steel prices. this is ahead of the may 11 listing of this better unit, which has posted 81,000,000,000,001 -- 81 trillion won.

shery: this is bloomberg. ♪

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open or trade. shery: our top stories this hour. asian markets pointing lower after mixed results from big tech in the u.s. investors now await pmi data due in the next hour. clamp down as test escalates on

the financial arm of 13 companies including tencent. chinese big bags see profit margins squeeze as policymakers lean towards lender. japan, south korea, and australia are coming online. >> we can see the consolidation on the final trading day and stocks have the best month since december. the nikkei would still be headed for the first people he rise on the earnings front. electron and watching as well as a place in japan at a toyota plant as a factory in the u.s. for that model to be produced there. ev battery joint venture and check out the yen. overnight there, a bunch of data

from japan -- and south korea, we have activity coming in stronger than forecast helping lift the korean 128 hi. there could be a little change this morning but still headed for a month of gains and it is the highest -- we get the first quarter report later today but markets are off-line in taiwan. turn to australia. it is the best performing in asian market in april with minor helping -- we are seeing under pressure 22% after cutting production target. in the commodity space, we have seen copper to 10,000 for a first time since 2011. iron is staying above 180. only about six pollard -- six

dollars to eight dollars a gallon. we are seeing commodities markets emerges and later this morning, we're going to get a up check on china's effexor as well. i.e.. haidi: let us get more market analysis. always great to have you with us. i want to start off with one part of your notes that really stuck out. we continue to see these horrifying numbers out of the pandemic situation in india and you are quite constructive when it comes to indian opportunities. can you talk us through that? guest: thank you for having me back, haidi. it is a country that has a very low -- $2000 and that is the point at which other countries that have progressed beyond that point start an exponential

growth path. in china for example, that was 30 years of growth so on top of that in india, you have a young population. because of that, there is enormous opportunity because the expected increase in consumer expenditure for many industries in india. air-conditioners will have a 10% attrition point. in china, it is about 60% for air-conditioners. the u.s. is about 90%. car sales and travel, smartphones, internet, etc. which means that there's so much room ahead or india. haidi: you talk about the theme of beneficiaries of u.s.-china conflicts and some are the other geographic opportunities across the region. as the supply chain -- is it

something that you're focusing on? guest: we are very much focused on the companies that will benefit from the u.s. china conflict. two important things happen because of the u.s. china conflict. countries want to secure their supply chains. they want to make sure that over time they are able to develop a domestic chip industry and that is going to take many years. in the u.s., it means the u.s. will grow even stronger ties with countries such as taiwan and south korea in securing its supply chain. the world is going digital and digitalization requires chips. that is why sony is doing so well because it is the future. they are the leaders in chips worldwide and they are in a dominant position.

shery: japan was not -- was being helped but we have them seen under pressure this month. what is going on? guest: japan gets no respect. if you look at the stock market over the last 10 years, they have done the best after the u.s. of all big margins but japan has only undergone and is put in place foundation for a much better stockmarket performance in the years ahead but specifically the share for ownership has gone up. you have much better tax laws and governors practices that make it much more attractive for activities. you are seeing this every week in japan where one come he tries

to buy another and in the process, they make the companies more efficient and this is something that is sorely lacking in the japanese market and it is finally materializing. shery: you see any problem with how involved the boj is in the stock markets? guest: this is an interesting question. it does more for the markets slightly because essentially for big stocks, it buys the biggest company so those two things. one, it tends to make companies more expensive. we base our buying on the value of the company. the mid-cap category or something is cheaper because they're not in the index. they then move into the larger cap sector and become part and

then there is a bump in multiples. that is the nature of the beast. the central bank involved in supporting its market and just something they have to deal with the aftermath. shery: fred you have your thoughts. -- great to have your thoughts. we are getting a specific date when it comes to joe biden and the president of south korea summit. we are hearing from the presstek cairn terrier -- press secretary that it be on may 21. following also a very recent prime minister rutte summit with joe biden himself. we know that washington as a month long review of north korea policy so that is expected to be

topping the agenda in that summit now scheduled for may 21. let us turn to vonnie quinn for the first word headlines. vonnie: brazil covid death toll is add more deaths in the first four months of this year that in all of 2020. that is the second highest discount behind the united states. officials say the acceleration is fueled by the lack of social distancing, a more transmissible virus strain, and a shortage of vaccinations. germany, france, and other european union governments are calling on other countries -- as that country battles record levels of covid-19. variance in india -- variants in india.

india prime minister appears to be trailing in exit polls with a handful of key election stretched over a month. voters in about a ground states -- main challengers and other elections will be counted this weekend. the actions seen as real -- india real from the pandemic. the u.s. department of homeland security says five agencies may have been hacked. the cybersecurity and infrastructure security agency says they may have been linked. american institutions have been subject of ongoing attacks suspected to be from russia and china. amazon -- 44% increase in first-quarter revenue and $108

billion even as vaccine rollout returns to normal. earnings at $50 -- $15.79. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: jake a look at the -- take a look at the earnings numbers with stock trading lowers. we are seeing a downside and that is the most we are seeing that stock fall in more than two months. forecast for the current year missed analyst expectations and also plans of a $2.6 billion capital spending plan. a bab -- a buyback of 2% of its

share. very positively for investors in tokyo listers shares are around 60% that results -- they have been pretty range and today is most definitely a down day, this after a buyback plan was announced. china is raining in the finance -- we get all the details on how the cubbies will be affected. include the likes of tencent. how india's vaccine drive left the country and cast. anger at the prime minister is growing. this is bloomberg. ♪ shery: chinese regulators have

cast their nets wider in its ongoing account of big tech, this time posing wide-ranging

restrictions on 13 companies including tencent. our correspondent is taking a closer look and joins us from hong kong. so this was not necessarily targeted at alibaba. this seems to be a wide back down. what do we note? reporter: well we do know that no one is going to escape this regulatory scrutiny. some call it a crack down and some will just have the scrutiny but we do not know the and story about what we do know is that regulators, we have the pboc involved. it overseas financial holding companies and we have the banking and insurance regulator but you of the security regulator, all of these regulatory bodies. some of the 13 other companies

that is not including alibaba, they are falling now under the same kind of regulatory scrutiny and requirement that alibaba will also be held accountable to so tencent, baidu, trip.com, among these 13 companies that were summoned and basically told that they need to be restructured. among those rectification's, companies must restructure their financial wing and sever improper legs between their existing payment services and financial products. there is a long list of rectification's that could have impacts on future listings. we do know that companies among others have plans to expand overseas ipos and these new rules go to impact them. if there's going to be

rectification's on payment and how they link payments to these various services, that further impacts them severely. they are e-commerce companies that have other services because it's payment and tencent pay link alumni services whether it is online gaming, e-commerce, whether it is the financial service, linked by payments so these are going to have long-term ramifications through these rectification's that are being ordered by authorities. haidi: how do you compare these restrictions to the one we saw in post? -- imposed? reporter: they are not surprising but the reason alibaba was targeted first is because it is the largest. it was the largest service company that came off the -- but

then alibaba was the largest e-commerce platform. $2.8 billion fine for competitive behavior but the rectification's need financial services and the think tank areas is going to be haps -- perhaps going to be more severe. what it does tell me is that this was not necessarily a witchhunt against the high-profile of outspoken mom or even pony ma. this is broad and wide-ranging against other tech companies, that so-called second and third tier of that unicorn in china, who perhaps trying to disrupt those financial services. they do venture in these areas and now they're going to have to be regulated. they're going to be offering them among their platforms and other billions of users, they're going to be regulated like banks.

haidi: chief correspondent. dealing with chinese officials. the reports of an upcoming's -- upcoming senses -- census. there was a lot of speculation it does seem quite mysterious. we know that china is battling what a lot of economists are saying is that this kind of demographic more with it asian population. what we know from the data that we have? >> it is assured that china's population is getting close to the point where it is going to into decline. you're the one child policy, your for rising cost of raising a child, all of that is by large guaranteed that china is going to eat very soon as a population. -- peak very soon as a

population. that data should have been released in april and it is not been released in april. but stoke a lot of investigation. the data was going to show the first decline in many decades in the chinese population. the statistics bureau came out to deny that saying explicitly, that the population grew in 2020 but we do not have her information. shery: i find that fascinating that they came out and needed to rebut that report so how politically sensitive is this topic? this sometimes brutally enforced the one child population. reporter: if china's population last year, it does not matter that much. we spoke to an economist who made this point. whatever the census showed, it

really spooked the leadership in beijing because it showed the aging of the population. that has massive implications for policy. it is going to make economic growth harder and harder to fund the pension system in this country. there is talk that china is going to raise the age limit for retirement, which is a very unpopular thing that the government wants to do. this is a very touchy political subject at the moment. shery: i think that is a huge topic that is not get talked about enough. up next, china's banks revel with dealing more than a fairly dollars of products that were previously off the book. the date tells -- the details are just ahead. this is bloomberg. ♪ shery: chinese vendors have

written off more than four and $50 billion. they're preparing to bring their off-balance-sheet into the light. provisions in so-called nonload assets such as wealth management products rose by 128% last year. we thought banks were trying to get cleaner. how problematic is this? >> i think one of the biggest things that we have seen in the last few years is the concerted effort to deleverage across the financial system. the pandemic obviously slow things down. i think that effort is restarting rules that were supposed to go and help banks and forced banks effectively to

bring a lot of the off-balance sheet credit assets. they're starting to see provisions increased for those assets. the issue is that i think regulators at the front the better part of two years trying to understand how this problem and. they defined shadow banking for the first time. we are going to have to watch those numbers carefully and how the increases look. they are increasing quite quickly. haidi: how concerned are we about these loan like assets? because as you say, it has long been a problem with categorizing and trying to list a hold on the states, the state of banks and their balance sheets, given the definitions are not always clear-cut. reporter: one of the things to

keep in mind, especially in this environment, wringing a lot of these assets on their balance sheets start affecting their capital so as they start bringing more and more of these assets, there is also an issue of natural liabilities and if there's any sort of issue with maturity mismatches that also becomes problematic or banks of eight ending perspective. i think the joint stock bank this is more of a issue but the larger names are the major issues of this. we're going to have to watch different metrics and bank balance sheets and see how they can manage in of they can manage to bring balance back to their balance sheets. the question is, how willing are they going to be and regulators going to be to bring all of the shadow banking assets onto

balance sheets and account for them in the way that they should be? haidi: something of a reckoning ahead. let us get a check of the latest business flash headlines. this is lower provisions helped push a contraction in lending income. assad 72%. honored billion dollars in the first quarter. amazon also beat a few metrics, delivering a 44% increase at a hundred $8 billion even as vaccine rollout shows a return to normal shopping habits. all the company has a bullish quarter sales of hundred $16 billion and shares jumped.

coming up next, we get a preview of the upcoming chinese data. this is bloomberg. ♪ ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. 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: an alert on the

bloomberg. we are getting japan's manufacturing pmi numbers. these are the final set of numbers for the month april coming in at 53.6 which is an upgrade from 53.3 which was the preliminary number. since the month of january and they're fed expansionary about that 50 level and the final april number coming and -- in at 53.6. japanese ego data has been very

good, beating expectations. we are seeing the japanese yen holding steady as that two-week low on a stronger u.s. dollar. let us now turn to china because they are expected to report their april pmi in less than a half an hour. our next guest has a slightly lower forecast for manufacturing pmi at 51.12. let us bring in iris. greg you have you with us. -- great to have you with us. iris: i expect a slower growth month on month in manufacturing sectors because of the chip shortage, which will delay production of many goods. for example, home appliances, automobiles, even smartphones.

i think this actually will last long, but partly some good news. because taiwan now has a water shortage and therefore as impacted chip production, some of these taiwanese companies may move the production to mainland china so it may actually offset some of the bad news of chip shortage in china's pmi. shery: manufacturing still has been a pretty strong rebound but it has been a factor that is like and it has had an uneven recovery because of the social distancing measures across china. are we going to see any improvements? iris: i think the service pmi is the higher number than the manufacturing pmi so there are

actually some strong growth. as you mentioned, social distancing measures have impacted economies service sectors but we have seen that catering has recovered to pre-pandemic levels, but i still expect a slow growth because services are impacted to hold by policies because of higher home prices so this will continue until home prices come down and then we will see another round of relaxation. you know that the cycle begin again. haidi: we will hear about liquidity concerns. given the renewed focus on getting back to deleveraging, is there a risk of going too hard? iris: i think the risk is not

really tied to liquidity. the chinese government does not want to kill property development, they want to shrink the debt level. i think that some of the property development as to divest and give themselves more cash. some property developers are actually operating at a normal speed. they get lands and then sell properties to get cash and repay their loans, so it actually varies across different property developers. it depends on the size of the debt and i do not see that it will be very high. i think the number one risk for the chinese economy is a war

with u.s. and its allies. this is a very immanent and real risk for the economy. haidi: we talked a little bit earlier about the confusion over the senses but regardless over the true numbers, it is clear that the demographic trends does not favor economic growth in china. is the agent population story, the low birthrate story, should it be barring chinese policymakers? iris: yes. it is very light for the chinese government that is relaxed the two child policy and then doubt, -- and the now, people do not want to raise children because that means a higher cost for them at a lower living standard for the couples, so some of them

do not have any plan to have children. this is actually quite difficult for the chinese economy going forward because it needs that lower leg up are from the population. increase labor productivity or increase the welfare for the parents to have a child. i think both of the policies have to be in place to have of the population being stable rather that going down and down. haidi: always great to have you with us. let us take a look at the markets now with sophie. >> wears a right across the board in the asian session with the index looking to help a to date gain but the regional index is still on course for the best month since december.

the nikkei under pressure with the likes and citigroup following. those gaining ground this morning and and soul, we are seeing chipmakers like samsung on the rise this morning. fujitsu also on highlight. checking out what is going on in tokyo as well as australia, jumping on the back of its outlook and its share of buyback and check out sodi. also gaining -- also under pressure amidst forecast and check out the company in sydney, jumping on the result of a covid treatment trial. cutting production targets. i want to highlight and tashi -- and tashi.

earning forecast across the region and i went to highlight what is going on in india switching out the chart. we had some bright spots delivering a profit jump of a buffer against these buyer concerns, potentially having investors taking it in stride. explaining -- potential for exponential the country alongside the trends of young demographics. a three week drop and headed for the best week since early february with 50,000 back in place although, stock futures asset lower benchmark. shery: we will have more on the virus outbreak in india. that is next. will discuss whether the prime ministers popularity and getting results from state elections as well. this is bloomberg. ♪ vonnie: this is daybreak asia.

beijing has opposed wide-ranging restrictions. 13 chinese companies including tencent. the firms were summoned to a meeting with the pboc and other regulators. in a statement, the companies must restructure to allow for more rigorous visions including

stricter complaints -- complaints. sources say japan is prepared to back president biden's proposal. the white house approved 100 of the world's biggest companies in the countries where they sell their goods and services. the taxes will boost government revenue at a time where tokyo is concerned about its national debt. global agreement on a plan within a year. united kingdom might add the u.s. to his list of clean countries as part of its reopening quarters. it says progress and vaccinations in both countries is driving the possibility. singapore, australia, hong kong and parts of the caribbean are also be considered. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn.

this is bloomberg. shery: a huge gap in vaccine access and asia threatening the regions economic rebound. while it is stiffing strong gdp growth this year, the bank says the covid-19 outbreak could still threat that. the president spoke exclusively to bloomberg. guest: last year, 0.2% growth rate it was a very first complexion the last six years. coming from this pandemic and this year, 2021, it is expected to rebound to 7.3% for a couple reasons. last year, it was so bad so this year is going to be good.

very strong growth by two giants, china and india. facing so many downsides of this including a possible delay in vaccine rollout and possible new significant outbreaks. east asia looks ok because of china and india growth but other countries in southeast asia looked a bit modest in terms of its growth rate. it also depends on tourism experience in more modest growth because for two reasons. it might take time. reporter: you talked about how that depends on the vaccine rollout. now does lighting behind -- now it is lagging behind. what is your take on it? guest: vaccine is very important

to break the chain of transmission and save people's lives. right now, developing countries of adp are preparing or conducting vaccination so what we are supposed to do is to secure the amount of financing to procure safe vaccines, plants, and strategies. timely vaccine distribution so we launched a new financing instrument. approved last december and we already approved for countries -- four countries.

we are working on many other countries. the issue is even if we secured the financing for the vaccines, to purchase extra vaccines at a time in the market. as you said, there's a huge gap. i've a strong feeling that we need to invest more in vaccine manufacturing companies in the region to expand the production. haslinda: you talked about the rest is also the downside is also the risk of uneven recovery. how do you assess that? guest: a couple risks that we are concerned about is obviously the huge debt.

countries are under enormous pressure because of this large-scale. this is very necessary to address that for the pandemic so it cannot be stopped so as a result, the u.s. dollar is a concern because we know sooner or later the u.s. will start. quite often in the past, we saw huge pressure imposed on the market. emerging-market in terms of and also pressure for a shop is appreciation so we need to be careful. haidi: that was the bank president. india remains at the epicenter of the pandemic as it sets daily records for new infections.

fully vaccinated less than 2% of its population. they say they are running short of doses. rachel, putting aside the fact on the ample vaccine supply and the logistics were ironed out, they would still not be able to fix the pandemic that is rippling through the country now. what is the situation when it comes to getting these into arms? reporter: we know the situation in india that people are desperate to get these vaccinations to protect themselves that are spreading so quickly across the native cities. the government did say -- all of the adult population can access those vaccinations. when they open up the reservations this week, they crashed immediately and people are not able to get any of those

spots until couple of months later. what they have also done is that the state should be procuring their own doses. this is something that the u.s. data under trump as well. you have the states competing with each other to try to get shots at the end of the day, there's not enough for population this passive. now the infection is spreading so quickly, they do not have any of the time to stock up supplies. shery: what is the government doing right now? rachel: what they're doing is that they are trying to get supplies from other countries in the u.s. has pledged to give india some of it supplies. they're really trying to boost. the issues that india as not so much time. -- has not as much time. they were dominated a lot of these doses.

they're really on the back foot right now. shery: rachel with the latest on india. still to come, southeast asia biggest bank is the latest lender to pressure earnings estimates. we will dive into results next. this is bloomberg. ♪ shery: chinese property

developers hit record lows on concerns about liquidity. rattled investors and have been paying dollar bonds from the stake sale in a former unit. it still has about $3 billion in outstanding fonts. -- bonds. they may consider selling a portion of its investors. the second major ratings firm to downgrade china more on -- the cut was due to the company's weekend funding abilities that increase uncertainty over its future. watch for further downgrades, haidi: southeast asia's largest lender is posting its first rebound or delete leading since 2019. bad loan provisions by 99% that

paved the way for a record profit of $2 billion. let us get more analysis. what are the key takeaways echoing --? >> especially because those of us who follow them for over a decade, it was always a leverage play on industries. it speaks to the diversity of revenue streams which is what contained the revenue especially talking about the transactions, loan momentum is encouraging and most notably, asset quality seems to be on track. shery: revenue was still down 4% . how long will that take to recover? reporter: we have flight that margin drop was going to be the

biggest headwind for this quarter and the bright spot goes sequentially that margin -- the base effect will fade off over the next two quarters because industry decline -- we meet -- we might see that drop over the next two quarters. haidi: 13% stake. is this for now or could there be more growth to come? reporter: these two deals -- these assets basically -- but these huge and growing markets. i would not be surprised if we see -- a bigger deal to raise capital would be a totally different matter. it will not stop and it is very

likely they would like to -- especially because -- it dies with the kind of business that they want to do. it is only a minority stake so it is likely that they would want to take on more financial services. that in our mind is one of the risks because big stuck with a minority stake or a while. i definitely think that there is more to go. shery: what do the numbers today actually tell us about what to expect from ocv next week as well? reporter: i think it is a very encouraging sets of numbers and what it also means -- for these two banks is something to watch out for.

asset quality trends largely look stable so i think this is all positive for the other two banks as well. shery: senior analyst with a look at the singapore lenders results. a mixed picture across markets, lacking clear direction. let us turn to sophie. sophie: given what we have seen, we, corn, soy, earnings on the radar. double first quarter in that profit from a year ago at spike from recovery when it comes to demand for products there, very much including. walmart returning to pre-covid levels. a narrow margin. the companies saying that there's been no significant and we will continue monitoring the situation.

this after ingredients -- ipo in the second quarter of the next year. asia, europe and north america so stuff to watch and singapore. february 12 hike after a five-day gain in singapore. some other factors too much for the share market in singapore. very as we head to the open in china and hong kong. moving to the downside and china future did settled lower and check the offshore yuan trading around -- 646. haidi: coming up, china's pmi numbers are out. we will be getting immediate reactions. we will also get her views as to

whether recovery goes from here. that is a for daybreak asia. we looking ahead for the start of trading in hong kong. this is bloomberg. ♪ tom: it is 9:00 a.m. in beijing

and in shanghai. i am tom mackenzie. we are cutting down to the opening trade in the chinese mainland and hong kong. manufacturing. -- coming in at 51.1 and those are the estimates. the number is 51.1.