haidi: these are our top stories this hour. the fed says it is unlikely to get out of control. g-7 nations target china as they

single out human rights abuses. more bank earnings are due out in australia. results crossing into bloomberg now. cash profit coming at 3.4 oh yen aussie dollars, a slight beat. that income coming in at $3.21 billion. when it comes to the net interest margin number, indications of long growth given we have heard it. [indiscernible] giving the acceleration of the economic recovery. the rebound in australia, new

zealand, coming in better than expected. that will help that net income beat. in tim -- dividend per share. that net income number at 3.2 one billion australian dollars. continue to watch and break down some of those numbers. we are also getting views from a ceo about those results. let's take a look at what else we are watching. this is the picture. we are looking pretty tepid. sydney futures rising to a record. stocks inching ahead.

new zealand off by about 3/10 of 1% when it comes to that last traded number, futures looking pretty mixed in asia. shery: u.s. futures looking steady at the open. this after we saw the s&p 500 finishing almost unchanged, it pared back into into the close. we had a pretty shaky session. tech leather declines with the nasdaq 100 extending losses. we have pretty strong eco-data. we also have the measure of employment rising to the highest 2018, when it came to inflation, the five-year break even rate touching a 13 year high, preaching that 2.7% level and finishing at the highest since july of 2008. can see it's below the markets view of that 10 year breakeven. we have several officials

continuing to walk back inflation expectations, including the chicago fed president. the cleveland fed president. not to mention the vice chair. we are with kathleen hays standing by with a special guest. >> we want to make him bloomberg radio listeners. joining bloomberg television about the federal reserve and the u.s. economic recovery. joining us now is the bank of boston president. it is great to have you with us. so much going on that we can talk about. guest: great to be with you. >> you gave some remarks at boston college today. you said you see enough further progress, that you could see

possible tapering in the second half of the year. at the same time, you said it is premature to start talking about tapering. what is the message you are sending us? guest: the message i'm sending is our guidance as we need substantial improvement in both labor markets and inflation. we are expecting, as the next few months rollout, that we will get better employment reports and very good gdp reports. so far, we have one gdp report, and one employment or that have been good. we need a little more time to make sure that labor markets are indeed improving as rapidly as we hope they will, and we continue to make progress on a sustainable 2% inflation rate. once we make more progress, i think then it becomes the time to start talking about when we should taper.

but it is probably premature at this point. we still only have relatively few data series. i am very confident the economy is likely to improve, but our new monetary policy framework is focused on outcomes, not just forecasts. to date, we have had limited outcomes. >> it does not seem like an optimistic message. if you look at the numbers created so far with jobs, then add adp jobs, you have 2 million jobs in a few months. can we at least understand that at this point, for the federal reserve, are we going to taper? your just waiting for enough of these strong signals to give you that green light, you are saying the economy is good.

it could happen in the second half. guest: we are going to taper if it becomes clear the economy improves. private-sector forecasts are expecting that. i would highlight that we still have an unemployment rate of 6%, in the labor force participation rate is quite low. when you combine those two features, our labor market was badly hit. by the pandemic we have a long way to go. we need to have a number of successive months with strong reports to make up. >> you also said that as the fed gets ready to talk about tapering, they are going to have to think about the speed to taper treasuries versus mortgage backed securities. a strong housing market, what

would you be in favor of doing? guest: as you highlight, the housing market is much stronger than many people anticipated, and has come out of the pandemic quite strongly. housing prices have been going up rapidly, rapidly enough we want to make sure they don't rise too quickly. as we start thinking about tapering, thinking about how we taper, and whether there is a difference between treasury securities and mortgage-backed securities is something the committee should have a discussion about. >> given the strength of the housing market and the fact that maybe you do not need to have bond purchases to keep mortgage rates down, this argues that when you do start tapering, let's start tapering the mortgage-backed securities first. guest: i would highlight no decisions or discussions have heard at this point. it's really premature to speculate on exactly which direction we will go. i completely agree with your

assessment. the housing market is quite strong right now and housing prices have been going out. the need for buying mortgage backed securities at the pace we have been doing probably is not nearly as needed as it was much earlier in the recovery. >> speaking of housing, you have mentioned in stability again today and it is something i want to underscore for our viewers and listeners. you spent many years on the banking side of the boston fed. you are very familiar with financial security, you have done a lot of research. basically, you are watching it, you have concerns we could see financial instability. when i compare it where we are to the great financial crisis, seems like the mortgage market has been cleaned up a lot, you don't have all the fraud or force documents. better credit scores. what are you looking for. but do you think could be happening? guest: first of all i think

they're a bunch of structural changes that need to be done. in the beginning of the pandemic, we had a run on money market funds, this is the second time that has occurred. we need to take actions to ensure every time we have a serious problem in markets that we don't see runs on money market funds. second, the treasuries it is market was badly disrupted at the outset of the pandemic. we need strength in treasury securities, so if people decide to get quickly, it's not as disruptive as it was. finally, i would argue it would have been helpful if we had had a countercyclical capital charge on thanks that was positive. that would have enabled us not to have to take as many regulatory measures, and would have had a capital buffer that we could have drawn down. i think these are the three things that i would focus on initially. as we get further into the recovery, if we continue to have

low interest rates, which i expect, i think it's going to be important to be vigilant on what sectors of financial markets are starting to show a little too much turbulence. already, i would say there are a number of areas in financial markets that certainly the pricing is fully priced, when i do have concerns if people take on substantial more risk as the economy continues to do well. that that is something we are going to have to be very vigilant about, and think carefully about how our monetary policies are expecting the potential financial security. >> [indiscernible] maybe move up that talking. give you some more guidance on tapering. your colleagues said they are looking at the same kind of things. stretch valuations, type credit spreads. he says the time to start talking about this is now.

in markets, that is the concern. you may be right about inflation not being an issue, but this is the question i think has a lot of people nervous. is there any merit to the argument? guest: with low interest rates, a very strong economy and likely a tight labor market, the conditions for worrying are probably going to grow over the course of this year and into next year. a lot depends on how the economy evolves. it is an area i am going to be watching very carefully. our new framework highlights that we care about financial stability concerns. many of my colleagues would prefer to use supervisory powers as a first line of defense. we don't have that many tools to

focus directly on financial stability. in fact, the countercyclical capital chart for banks is the primary tool that we have two really think about financial stability. one of the challenges in the united states is we don't have one supervisor who is responsible directly for financial stability. that's a little different. >> maybe that is something you will be able to push congress towards. i want to ask you about inflation because you made it very clear today there is going to be inflation pressures, but don't make too much over year-over-year numbers. it's going to go up to about 2% and probably stay there. is take a big investor. it's going to be so high it's going to force the fed to hike rates. janet yellen. she said with massive stimulus,

giving the economy more of a push, that rates might have to rise a little bit to make sure the economy does not overheat. that is what she said. clearly that is what she sees. with so many people saying inflation is going to go up, how can you be so sure it is temporary? guest: we can never be sure but i will say if you look at the private sector forecast, the blue-chip forecast, the talk that i gave today. i have a chart that shows what individual forecasters are expecting for inflation this year and next year. the average of those forecasters is 2.3% for this year and 2% for next year. why do they have inflation somewhat higher this year and somewhat lower next year? they are likely to be temporary effects that are going to cause an nation to be higher this year. one of those effects is the beginning of the pandemic,

prices were dropped quite substantially as firms try to clear their inventory before the economy shut down. those observations are dropping out, which is going to cause a year-over-year look at inflation to look a little larger. second, we definitely have had some supply shocks. you're seeing a very low inventory level. it's hard for many retailers to restock their shelves. you are seeing it in the backup. you are seeing it in shipping. all of those things are likely to mitigate over time, so i think there are going to be significant pressures in the near term that are more related to supply problems. i would highlight because a lot of people -- [indiscernible] think about airlines, restaurants. many people are anxious to start spending again, and spending in a way where they don't have to be socially distanced. there is likely to be demand at

the same time that there will continue to be. supply constraints that pushes up inflation but we are not expecting that. the fed has of forecast that's very similar. >> part of the new framework is we got inflation would go up and employment got low. we have change the paradigm. we're going to let the economy run hot and let inflation rise. we don't even think for sure it will go much further. are you using, already victims of the old paradigm? is it possible this is a different recovery? coming up from a strong economy, big dip from the pandemic, now you have $6 trillion at your back. is it possible you're going to miss the fact that the paradigm has changed again? this is a new paradigm and

inflation pressures could get out of hand if the fed is not a little more ready to even take tiny steps to address it. guest: i think we are ready there is clear evidence that inflation expectations are the underlying ration goes up. i don't think we should overreact to temporary measures. it's going to be easy to write headlines over the next couple of months, particularly if the time period. annualize the dollar -- data highlights supply shocks. we have just got from most of the period from 2000, the surprises have all been bid on one side, that inflation has been lower. it's going to be very hard to see a lot of sensitivity of wages and prices. you are right, the pandemic may

have changed some of the behaviors of individuals. we are going to have to look very carefully at the data to make sure that is not a current. i think the weight of the evidence has to be that we actually have data that shows the underlying behavioral assumptions have changed enough that we should be more concerned about the underlying [indiscernible] >> what about the size of the stimulus itself? for couple days ago i did an interview with a central banker. he said that he thinks the fed is being overtaken by events. saying we're are going to remain accommodative. the fed is probably going to boost the economy to rethink what it is doing. the fed may have to move sooner, including on tapering, which is something that could give the bond market a bit of an unpleasant surprise. i guess i want to focus on the

stimulus part of this and the possibility that it is different again, and that is something that does not really seem to happen. guest:6 we should remember there are a lot of slack and labor markets. unemployment is at 6%, the labor force participation rate is roughly lower than it was prior to the pandemic. there is a lot of room for labor market to tighten up. the pandemic was a severe shock, we need to have a very strong economy to get people reemployed quickly. one of the ways you do that is to continue to have stimulus with monetary policy. the other ways to have a fiscal package. i agree the fiscal package is much larger than what we traditionally have seen. i think it is also reflecting the fact that we have had a very severe shock that disproportionately affected the low income workers, than if we don't have a strong economy,

they may stay unemployed. >> sen. ossof: you just mentioned the labor market. all of a sudden we are hearing about the labor market. i thought the phillips curve was discredited. that there is a very weak link between labor markets and unemployment, and what happens with inflation. if it's discredited why is the fed calling on labor markets? guest: most people have to argue that wages and prices are going to start being much more sensitive. that is not in the data right now, it may be in the data going forward that we are going to look very carefully at the data to see that is the case. i think the burden of proof is on individuals who say it is in the data, and at least two dates, it will be a very hard case to make. >> thank you so very much.

the national australia bank has released its earnings. 3.3 billion aussie dollar's to about two and a half billion u.s. dollars. and other strong results for another one of australia's. > thanks still digesting the contents of this, it was only $1 billion this time a year ago. coming up off a low base. revenue did slip a little bit, down 1.5%, but the dividend is definitely a beat. $.60 for the expectation. saying they're going to target a dividend payout ratio.

margins are slipping a little. the ratio keeps them in the unquestionably strong category, 12.4% capital ratio. they are saying they will target 11 point -- 11 and a quarter percent. it does expect expense growth. shery: would be spoke to the ceo yesterday, he was extremely optimistic about the economy. what did they say? >> more extreme optimism. the rebounds are stronger-than-expected, there is reason to be optimistic. nab seeing gdp at the pre-covid level. wage growth, inflation remaining week for some time. that is the develop economy disease.

there is also a hot housing market. that stopped advertising home loans, can barely keep up with demand. they are a beneficiary of the hot housing market. haidi: [indiscernible] bloomberg.com we will be getting more little bit later. in the meantime, we are looking ahead to a high altitude flight test. the last time it was pretty spectacular, went off without a hitch until the reentry. we are watching the preparation for that launch from the starship base. similar to the previous for launches, that will be powered by an engine. looking for a successful reentry and landing. last month elon musk that the

starship could be ready for human flight interest to your time. are they right on that schedule? >> he is always a very aspirational guide who pushes hard deadlines that may not always be realistic. i don't really, see two years as realistic asset itself does not have the funding itself. it is definitely a case where they move a lot faster than people expect. shery: we are actually listening in to starship sn 15.

the test flight taking off from texas. the spacex fifth version of the starship. it's always the reentry we are talking about, the fiery crash landing we saw a few times. what are you watching out for? we know that even when these test flights and in fiery finales, they to get out tons of data when it comes to the rocket design, navigation and other systems. >> for the layperson, the last four attempts have not ended very well. but if you are an engineer, there is a huge amount of data that you collect and learn from each one of those. the company would say they were

all successes even though they did not end very gratefully. this prototype has what elon musk has said are hundreds of improvements over the prior prototypes. i think what is interesting about this one is not only does it land successfully in a different way, but if they are doing that bellyflop maneuver where it gets to the top, the engine is cut off, it does a sideways motion. is that going to be the same or if they made some design changes there? it's interesting to watch these flight tests because you are always going to see slight variations from what went up the last time. haidi: we know that elon musk had designed starship as very versatile, reusable, can carry 100 metric tons. intending to take people to mars and to the moon and back. is this a workhorse in the grand

scheme of what it looks like in elon musk's grand plan? >> it is going to be over course in the sense that you would have dozens for more of these each day taking off, potentially for the moon and mars. he has talked about flying every three hours. it's a grand ambition and a future ambition, but its member this vehicle becomes much more like an airplane than a spaceship, even though it is a massive spaceship. and will be going to space. it's got the reusability of an airline in the sense that you just put fuel on it and off it goes. shery:. continuing to watch what is happening. you can see right there the feed

is frozen but we are waiting. spacex saying they have a shutdown on time. we are talking about sending to humans into space. saying that it could be ready for human flight in two years. we have also heard today from blue origin as well that the race in space getting crowded. with virgin galactic, as well. >> that's right, this particular summer, this could be a real milestone as well as virgin galactic and blue origin both talking about flying their first people paying customers, and maybe richard branson in new mexico, in the first people are supposed to launch july 20 on the blue origin craft. it is becoming a very vital

vibrant time for human spaceflight. haidi: we are getting some more pictures as that once continues. we have had had successful on-time shutdowns for the engines. [indiscernible] approximately 10 kilometers in altitude. where we go from here, they are performing a propellant transmission. those of the things that hold the landing propellant, they are reorienting themselves for the reentry and hopefully coming in down for that controlled aerodynamic. . last time and other times is where we ran into a few issues. there has been high-profile celebrity, commercial flights. is there you talked about elon

musk going ahead and getting humans on the starship's. justin: well, to date, the u.s. government has had a hand-on approach in the development of a of these. and it is really a case of you need to be informed of the risks and give consent after a full uprising of what could befall you -- full appraisal of what could befall you. shery: we are now seeing the landing, we are in the dissent phase asked six kilometers, you can see the landing. but not much more than that, because we are seeing smoke around the area. last time, we said it arrived safely, you can see the rocket

right there. but as we cut out from the feed, a few minutes later, we heard an explosion occurred. so we are staying with the feed right now. justin, when you are watching these pictures, what should we pay attention to? justin: i would look for any signs of flames. because of what happened in the third flight, not the forth, a fire broke out and you did see flames. whether that could be normal or lead to some other problem we are about to witness, it is a case of -- i think they are putting water or something on there -- is this a fire and is this going to stay put, or is there excitement coming up? that is the main issue. haidi: we are watching pictures

live out of the starbase at boca chica, texas. we are seeing what looks like a small fire or flames. this happened the last time, when we saw that explosive mishap, a great deal of debris being blown out according to cameras on the ground that captured that. it looks as though the flames are fairly well contained. we are continuing to watch. justin, in terms of the number of these flights and tests we are expecting before it reaches some level of safety, what has elon musk said about the repetition of being able to do this time and again, and what is the cost? justin: we are going to see a lot of these, and they have gone were near space or an orbital flight yet. musk talked about july as an aspirational goal to put this in orbit. that seems very ambitious from where they are right now.

but the next milestone is to be going higher and higher. they have not gone anywhere near 50,000 feet or 80,000 feet or any of those milestones. that will be next. and then, you will see an orbital flight. before that, they do need to have a stable landing without any sort of fire situation to take care of on the ground. i think that what you will see is a lie more flights, and progressively higher. but he also said that there will be a lot of craft losses on the path to having an operational vehicle. so look for that. as for cost, it is really a marginal cost in the sense of, they are building a lot of these things and the big expense is most likely going to be propellant that gets used on a test flight, aside from your fixed-labor costs. so the cost is propellant for

these type of things, because the development program all along envisioned dozens and dozens of prototypes. i think we are seeing a cadence of about a flight every month. haidi: spacex reiterating that the landing was a successful one, this spacex fifth landing of a flight in texas and a small fire we have been able to see. spacex, saying it has been a success landing. justin bachman joining us in dallas paid let's check business flash headlines. tesla is about to produce credit revenue that will be key as atlantis exits the european credit agreement. atlantis says it saves the company two thirds of which will advance tesla. tesla increased credit for

carmakers -- credit for cars that require stricter emissions standards. customer spending hitting a most $20 billion, revenue declined on a $600 billion expense for workers in the u.k., adjusted losses $359 million. uber also abandoned it self-driving car experiment. general motors reporting stronger-than-expected growth in the first quarter and left its four-year outlook unchanged as a chip shortage continues to weigh on the company. the carmaker beat estimates on robust demand in the u.s. and china. gm expects earnings to be on the high and in the $10 billion range. shery: credit officials are

trying to assure investors in the u.s. public that they are not concerned about higher inflation readings as a playdom concerns about the economy overheating. our next guest still sees considerable slack in the labor market. we discuss this and other moves with cheryll smith, portfolio manager at trillium asset management. does this mean you are not making portfolio adjustments, given you don't think inflation is an issue at this point? cheryll: thank you. great to be here. it means that as the market seems to get over excited about inflation, it gives us a little bit of opportunity. but we are holding steady. we believe there is room for the fed to continue on the expansionary policy and for the fiscal policy to continue to be expansionary, with a really long ramp way before you would get to

substantial and betting of inflation. shery: we are seeing earnings driving the markets right now. this gtv chart on the bloomberg shows stay-at-home businesses are not doing as well as they did during the pandemic. with covid cases decreasing in the u.s., you're seeing stay-at-home trades suffering. where do you by then? cheryll: we are looking for companies where we expect an earnings acceleration. we started transitioning our portfolio in the fall, and more in december and early this year into companies without would benefit from reopening, so companies that are in more cyclical areas, industrials, also consumer discretionary, trimming away from the consumer staples area, so looking for companies that perhaps had a harder time in the last year, but still have a strong, fundamental business and we

expect to see their earnings accelerate. haidi: cheryll, where are the biggest pain points potentially if we see a quicker than expected acceleration that pushes normalization of monetary policy that has not yet been priced in, given valuations we have seen in liquidity that is sloshing around still? cheryll: i want to push back against that. i have a strong belief that it will be a long time before we see a substantial grounding of inflation, or growing up inflation. we are going to see a lot of prices that look very high on a base fact. so if we look at the commodity price index, it looks like it is up 40% this year, or on a year-over-year basis. but if you do it on a two-year basis, it is only up 5%. so you really have to be very careful with the data, looking here, so we could see transitory

spikes in interest rates, we could see indefinitely, as interest rates go up on a transitory basis, you can see that being taken out on tech pes, because they are a very long duration. but i want to reiterate that that is a very low probability event that we will see substantial acceleration of inflation. haidi: when you look at the beneficiaries that have been already boosted by expectations, not just reflation but enduring inflation, does that mean you take with a grain of salt how far these stocks and these sectors will run once that starts to peter out? cheryll: yeah. we are being wary. we do not want to buy into any company that we think is going to do well, that the market will need to do well only because ac inflation is a benefit from inflation. -- because they see inflation as

a benefit from inflation. so we are really downplaying that theme. haidi: cheryll smith, performance manager with trillium asset management. great to have you. let's get to vonnie quinn. karina: -- vonnie: modernity says it's booster gives extra protection in vaccinations in brazil. one is against the south african strain. the drugmakers that is worried about new variants emerging from india. >> just as the state is going to be coming out, we are seeing strength in india that is even more ominous than the south african one. how is that going to care against the new boosters? and if people think we are going to be stuck in this battle for a long time, we are, but at least now we have something to deal

with it. >> donald trump remains banned from posting on facebook. the content oversight board announced a binding ruling and said it will review the ban in six months. the former president called the decision a total disgrace and embarrassment. trump also remains banned on twitter. the fcc chairman send his strongest signal yet that stronger rules could be introduced up of the gamestop trading frenzy this year. he says apps like robinhood exploit game-like features that keep customers trading over time to boost returns. and he says big players threaten competition. . before the house financial services committee -- he appeared before the house financial services committee. >> bill gates holding company

transferred securities to melinda gates this week, including shares in the canadian national railway. the two are divorcing up to 27 years of marriage but say they will remain involved in their foundation. 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'm vonnie quinn. this is bloomberg. ♪ haidi: top diplomats from g-7 nations have made a laundry list of concern that will get under china's skin in their latest comedic a. they call that human rights abuses, beijing actions on taiwan, and our government reporter emily wilkins joins us. emily, how does this potentially set the tone for next month when global leaders meet? emily: this plays into what president biden has wanted to happen. president biden's idea is that the u.s. can team up with its allies and more effectively

pressure china to end some of these human rights abuses, as well as keep the u.s. stance as a global superpower. so this really does set the tone or president biden next week, and there is a continuous push into building relationships with allies and putting pressure. . on china shery: also -- pressure on china. shery: also big news today that the u.s. will support waving intellectual property rights for the covid vaccine. this seems to be a huge change from a few days ago when they said they wanted to expand u.s. manufacturing. what can we expect from the wto? emily: it is definitely big news that the u.s. is going to support this waiver for intellectual property protections. the key thing is that the u.s. said they are on board, but we have a long way to go. there needs to be other countries on board as well with waivers, and other countries have concerns. it is not just the u.s., it is

the u.k., other european nations who have been holdouts on making sure that the intellectual property i'd to this vaccine is more widely available. the hope we have heard today is the u.s. coming out and saying they are supportive of this waiver, that there 80 other countries too, saying that if the u.s. is on board, we are also on board this is as we see a crushing amount of covid to cases including in india, a crushing outbreak there. and in the u.s., more than 50% of adults have had the first vaccine shots, and it is time to start pivoting and helping the international community. shery: bloomberg governmental reporter emily wilkins. up next, uber touts a jump in bookings, but increasing concerns on labor regulations are weighing on investors' minds. we way down -- we break down the report. this is bloomberg. ♪

♪ shery: let's dig deeper into uber earnings. shares initially surged after hours on strong bookings and delivery growth, indicating the ride-hailing service has discovered -- has recovered. but shares fell during the

conference call, even as the ceo sees profitability by the end of the year. su keenan joins us. what caused the turnaround? su: regulatory concerns and a second-quarter outlook caused investors to reverse sentiment during the call. worker reclassification in the u.k. cost uber 6 million -- $600 million and that resulted in 11% decline in revenue. incentives will be used to get drivers back on the road and that is going to impact second-quarter earnings. investors clearly didn't like that. but in first-quarter earnings highlights, it was largely very good news, record demand, strong growth, 24% in bookings, driven largely by the delivery business. total value of customer spending on uber reached $19.5 billion. that is an all-time high, exceeding estimates. delivery bookings were up 166%

from a year ago. and the stock, which initially spiked on all that news, did decline as we got into the conference call. one of the concerns is that it looks like getting those incentives for drivers back on the road could take as much as 20% out of each fare in the second quarter. the ride-hailing and delivery company did narrow adjusted losses in the first quarter and that it plans to reach profitability by year end. but that did not appear to reverse the after-hours decline. again, largely good news, but a lot of investors focusing on what is ahead this summer. haidi: su, what were other highlights of the conference call for you? su: regulatory issues were a dominant topic. executives did downplay news earlier that the biden white house was reversing a trump gig

workers rule. they said that was largely expected and was not going to be impactful. they did give details on the landmark ruling in the u.k. come over the company has had to agree to government-mandated benefits drivers. that resulted in that $600 million expenditure. without that cost, uber would have reported revenue growth of 8%. they put a lot of emphasis on the delivery service, delivert -- delivery revenue rose another 20% from the prior quarter. they also announced they plan to grow the grocery segment, which they believe they have the potential to make into a bigger market than food delivery. on the regulatory front, food delivery is also an issue, specifically fees delivery apps charge restaurants. there are legal issues on that. one analyst pointed out,

pre-pandemic, there was no oversight on these fees. that was emphasis from the ceo and cfo on getting to profitability. uber says it will do what it needs to do in the front and they have cut they left of costs. haidi: su keenan in new york. that's get ahead of the asian trading day, sophie kamaruddin in hong kong, continuing to watch crude and uneven demand in benchmark pricing. sophie: there is more room for upside when it comes to wti and brent while there is downside rusher when it comes to dubai crude prices. we are seeing demand staying soft. pulling up a chart on the terminal, slipping to a discount in new york, indicating slowing demand.

estimates are further downgraded for oil products this month. this country is buying a lot of middle eastern oil, india, so prices for june shipments of arab light grade oil has been cut. shery: we have seen recently the aussie dollar, kiwi dollar really outperforming. what are analysts saying about their preferred plays? sophie: bank of america is looking at the short-term outlook being favorable for the norwegian krone, given the caucus position of the central bank they are, while in the long run, the aussie dollar is benefiting from green energy and digital trends, as well as copper, lithium and cobalt. commodity currencies are only tentatively factoring in higher commodity prices, as commodities

pickup post pandemic. shery: we will be watching those fx markets. plenty more ahead on daybreak. this is bloomberg. ♪

♪ haidi: we are getting numbers at

the moment, united overseas bank reporting first-quarter net fee and commission income of six under $38 million singapore. they headlined, just over one billion singapore dollars, beating expectations of 108. we are looking at the impairment charge number for the first quarter at $201 million singapore. it is southeast asia's second largest lenders seeing a big rise in income march 31, that was expected, but a big jump than expected. we are seeing credit losses at $201 million is reported the scl ratio 1.5% of the important first quarter net interest margin at 1.75%. analysts had been expecting the profit number to be driven by the lower loan buffer we are seeing as well as gains across

europe. a declining provisions is also seen as a big support for profit at the end of the day. we will get more numbers from your assent have more analysis of those numbers, but a sound day as we round out what has been a strong earnings season for big banks. shery: let's get business flash headlines. this steel company has gone to profit in the last quarter driven by economic rebound following india's nationwide lockdown and a global rally in steel prices. world net profit jumped to 199 billion dollars compared to a loss the year earlier. sales rose 39%. the company cut debt 20% and plans to continue to cut it this year. the ceo of the world's second-largest oil producer says investors are undermining the gold industry's ability to grow by demanding a bigger share of

profits. mark briscoe is urging fund managers to take a long-term approach as minors navigate tricky regulations at a time of rising environmental standards. >> our industry has not invested in its future. it has always been floated by the rise of gold price since the turn of the century. so it is an important time. the real tension is between fund managers wanting to take out and get more from investments in the money in generally, and the importance of reinvesting in a consumptive industry, and balancing that. shery: peloton shares tumbled after it recalled treadmill products and halted sales on safety concerns. u.s. regulators issued a warning and launched an investigation after dozens of injuries and the death of a child were reported. the company initially said the warnings were misleading, but

apologized now for not acting sooner. on "daybreak: australia" we are seeing futures unchanged and have the open in about two hours. this is bloomberg. ♪

♪ haidi: good morning. we are counting down to asia's major market opens. shery: i am in new york, welcome to "bloomberg daybreak: asia," haidi: we hear exclusively from the boston fed president who says more time is needed to