>> good morning. i am haidi stroud-watts. shery: welcome to daybreak asia. our top stories. asian stocks tracking declines, after inflation worries and another day of losses on wall street. gold and silver hit their highest level in three months. haidi: president biden delaying

as he looks to clear up confusion on wall street. china sinks cryptocurrencies, warning cryptocurrencies cannot be used as payment. >> let's look how we are setting up around asia. sophie is in hong kong. inflation worries plaguing investors. sophie: we will continue to watch that. this is after a three-day gain on the hong saying. -- the hang seng. we are bracing for losses after the loss on wall street. moving to the downside. nikkei futures under pressure, signaling losses of 1% potentially. number are booked a $600 million

loss. -- nomura booked a $600 million loss. switching up the board ahead of fed minutes due wednesday. precious metals moving, sending gold and silver to three-month highs. investors are turning buyers. pulling up a chart on the terminal, precious metals have outpaced broader commodities over the past two weeks. that may see precious metals test the upper end of a downed trend -- downtrend channel. if u.s. economic data continues to disappoint, prompting investors adding exposure. you have something gold will lose some bluster. they are forecasting gold will

fall to 1600 by the end of the year, but now shining against bitcoin, which was the most crowded trade in the latest survey. shery: one of our top stories, bitcoin slumping to its lowest after china's central bank reiterated that cryptocurrencies cannot be used as a form of payment. let's talk to our markets reporters on this. what else is the pboc saying? >> that there isn't actually ability to use bitcoin or any other no currencies in chinese products, payment institutions, they can't be priced in cryptocurrencies, so you cannot use them as payment. this is not unusual. we know that beijing since 2017 has clamped down on those offerings, saying virtual currency trading's within its

borders is limited. a lot of the mining and capacity within the borders has gone abroad, so not all that surprising coming out of beijing , but enough to sink bitcoin. >> it comes under bearish circumstances for bitcoin, falling to the lowest since february. we are seeing a reversal of the legitimization of it? >> absolutely. you nailed it. you are starting to see bitcoin making steps towards getting mainstream. you saw it in tesla and several other financial payment companies saying not only do we accept it, but we will put it on our balance sheet. the latest tumble after elon musk said they could have sold their holdings in bitcoin or plan to hold their holdings in bitcoin. a lot of that is at the whim of

elon musk. bitcoin also has a strong correlation to tech stocks, so when you see tech tumble, bitcoin tends to follow. >> what is the general feeling and thinking on wall street when it comes to bitcoin long-term? >> we just had the bank of america survey that is long bitcoin, so it seems like the sentiment among fund managers that bitcoin is here for the long haul, but they are certainly bullish on it. that is the long-term. near-term, we have to watch the technicals, the rsi. they are same 40,000 is the next level they are watching. if bitcoin can maintain the level above 40,000, it can climb back up, but below 40,000, it starts to get tricky. >> always an interesting time on

the crypto beat. you can follow more on this story and the day's trading action on our blog on the bloomberg for a market run down and one click from expert editors and find out what is affecting your investment at any given point. >> the biden administration would delay a ban on new u.s. investments in chinese companies. it comes as official strapped guidance to clarify a policy that confused wall street. let's bring in tom mackenzie. what do we, about this delay? >> this is the biden administration ensuring clarity around the ban, initiated by the trump administration, and companies linked to the chinese military notably the three largest telecom companies.

the administration wants to clarify the rules, because it did cause confusion at the time, so the deadline has been pushed back to june 11. >> what are the risks of getting this wrong? >> the risks are you cause more turmoil on wall street. you saw the financial sector with last -- whiplashed by this ban. you sell one smartphone maker challenging and suing the government. eventually, the u.s. took him off the list, and the administration wants to continue to have a tough line on china. >> what do we know about the latest when it comes to chinese investment treaties with europe? >> we are hearing from politico that the european parliament is

set to freeze this eu-china investment treaty. this comes after china imposed sanctions on 10 europeans and a number of european entities, including members of the european parliament. this is according to reports by politico. they also say this motion that will be pushed through will call for increased cooperation between europe and the u.s. when it comes to china. those chinese sanctions on european officials was a retaliation over european sanctions over alleged abuses. this investment treaty was seven years in the making. >> tom mackenzie in beijing. we have breaking news. a weight loss mobile app is said to be valued at $10 billion in an ipo. they receive funding from silver

lake ahead of a planned public listing. the company reached a value of $4 billion in the funding round, which included other investors. noom tries to build new habits in a healthy way. it is said to have met with advisors for a listing this year or early next year. let's get the vonnie quinn for the first word headlines. vonnie: president biden touting his proposal that seeks to transform the automobile industry, even as the global chip shortage hinders production. joe biden this is a ford plant in michigan. ford says the trucks will be a turning point in the electric vehicle revolution, as the u.s. takes on china in the race delete the global electric vehicle market. >> the future of the automobile

industry is electric. there is no turning back. the american auto industry is at a crossroads. the real question is whether we will lead or fall behind in the race for the future. >> janet yellen is said to be planning to travel to london to attend a meeting with her counterparts. it would be her first overseas trip since taking office. the u.k. announced the meeting will go ahead, as the virus subsides. the meeting comes as a 2021 deadline set by the g20 group looms for agreement on corporate tax. as large parts of india's struggle against a rise in covid cases, mumbai is reporting fewer casualties and has been able to slow the outbreak. it has reported just under 2800 deaths since the second wave began on march 1, a quarter of the more than 10,000 in new delhi. the official site the -- said

the city fared better. colonial pipeline says its communication system is in service after facing network issues that affected shippers earlier. the crucial fuel supply has been trying to recover from a cyberattack that forced a shutdown, crippling oil and fuel supplies across the southeastern u.s. widespread gas shortages and price hikes where the result. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> still ahead, emerging-market rally, but investors are more selective. we will discuss the bigots pockets of opportunity. plus, a japanese paper company says would could replace a component in electric batteries. this is bloomberg. ♪

♪ >> emerging markets, investors turning more selective, the impact of covid and inflation. joining is now is our guest. great to have you. how much appetite is therefore emerging markets now? >> it depends on who you ask. we deal with institutional investors. they are employing through chief investment officers. those managers are overweight emerging markets now. >> what are some of those reasons? >> valuations are more attractive in the emerging-market space in the

u.s., especially as you look at the growth indices. on the other front, you have this expectation that this emerging middle class in india, china, indonesia, 30, 40, 75% jumps in the middle class. then, earnings growth for 2021 is stronger in emerging markets then developed markets, and trailing those is actually the u.s. >> we are seeing value overtake its growth peers, this chart showing the recent outperformance. what sectors and investment trends are these funds looking at? >> if you look at the allocation

of cyclically-oriented industries as a whole, far more those are representing the gdp of the eu and developed markets europe than in the u.s., so it is a cyclical orientation and not the industries themselves. we have seen a big movement base metals, energy, very high in q1, anything part of the reopening trade, whether it be lifestyle or actual manufacturing, you will see a continuation of it. >> use say this is the most speculative moment you have seen in 30 years, talking about the economy and capital markets, so how do you hedge for the moments when interest rates start to rise and the stimulus stops? >> the speculative issue is in the u.s.

we are throwing so much gasoline on the fire, the biden administration proposed and authorized well in excess of $5 trillion in stimulus. the spending is coming after the horse has returned to the barn, so that is the big issue. we are putting a lot of stimulus in the system and a lot of progressive tax policies to change the way commercial real estate will be treated, capital gains, so many impacts, then you throw in this valuations i talked about earlier, 230% of the long-term normal valuation, there is a lot of places where things can go wrong. >> was the easy money stops in the retail investor goes back to work or find something else to do, does cryptocurrency stay as a legitimate asset class?

>> it is a great question. we have had a lot of conversations. i think the date it switches from the boardroom, we will see the legitimacy you are talking about. it will return to this marketplace and this asset class but you have material costs and labor costs on the rise. i think crypto could prove itself to be the new gold, where people go to hide as global interest rates and global inflation accelerates, especially what we could potentially see in the u.s. on those fronts. >> do you see this idea of u.s. exceptionalism persisting, also the u.k.? it feels like the narrative as to how the pandemic rollout has been handled has now flipped. >>, think timing is very crucial

-- hi think timing is very crucial. the vaccine rollout in the united states is far more successful reaching that critical mass than other parts of the world. that also creates opportunity as other countries, asian, emerging-market, or latin america, which is trailing substantially, and those countries reach critical mass in terms of the vaccine, that is where the story gets interesting. we have had a successful recovery in the u.s. we have a record number of job openings in the u.s., over 8 million. technically speaking, we are fully employed in the u.s., if you take out the specific industries affected by covid. the rest of the world has not experienced that. so whether it is exceptionalism, from my perspective, it is about

who gets growth. you have explosive growth opportunities everywhere outside the u.s., especially emerging markets. >> coming up next, leadership check with j.p. morgan, pushing two women to the front of a list who could be successors to jamie dimon. this is bloomberg. ♪ this is bloomberg. ♪

>> the race for the throne, two women have been pushed to the front of the field, after being named co-heads of the massive banking division. let's get more from our correspondent.

how is the race shaping up? >> it is amazing. we have seen this story so many times before. one banking analyst says this does look different. the reason is because there is an expectation created on wall street that one of the two women could be the next ceo of jp morgan, if jamie dimon decides to step down, which is still not expected right away. this is giving these women more possibility, but remember gordon smith, the leader of the consumer bank, he is stepping down. >> as you say, this is not something expected straightaway. do we know the timeline for when jamie dimon might step down?

>> we don't. if he announces that timeline anything less than what he has said in the past, and what he said is another five years, another five years. everybody likes jamie dimon at the helm of jp morgan. the next couple of weeks and months and next year or so, there will be a close watch of these women, and a lot of people wonder what the timeline does look like now that we have people with a lot of experience. what investors don't know is what the bank will look like long-term given that jamie dimon has been at the helm long-term. >> we know he wants the bank to look like it did pre-pandemic. now we are hearing they have dropped the mask mandate?

>> absolutely. jp morgan has been a leader on wall street also, keeping in mind events around the world, but jamie dimon same people work better when they are together. with all of that said, there is something interesting, that jamie dimon has a particular leadership style, so let's see as these women take on bigger and bigger roles how they shape up as leaders of bigger parts of the firm. >> perhaps a different type of leader. really interesting time for jp morgan. that is our wall street correspondent in new york. let's check the latest business flash headlines. bank of america ceo brian moynihan says it is boosting its minimum hourly wage to $25 an

hour by 2025 missing the bank will require u.s. vendors to pay employees dedicated to the bank $15 per hour or more, following four years of pay increases that has brought minimum wage to $20 and 2020. ubs has started job cuts in investment banking wealth management to save $1 billion over the next three years. bloomberg has learned the reductions range from managing directors to junior employees, and effect as many as 1700 positions in switzerland alone. the ceo has an pushing to cut costs and digitize bank offerings. wework says inquiries are now higher than pre-pandemic levels. after a failed ipo in 2019 and job cuts, the company says covid-19 lockdowns helped to reinvent itself and cut costs. they are hoping to capitalize on

working arrangements after the pandemic. >> when you are the only company with over 1000 buildings in the most important cities around the world, the demand for space today is higher than it was prior to the pandemic, so we were allowed to reinvent itself and learn how to operate on a cost-flexible basis. >> standard chartered private bank prefers equities over bonds. we also getting views on commodities and in particular, the rally in precious metals, next. be sure to tune into bloomberg radio to hear more from the big newsmakers, get in-depth analysis, forecasting live from our studio in hong kong, listen by the mobile app, radio, or bloombergradio.com. much more ahead. this is bloomberg. ♪ this is bloomberg. ♪

>> we are counting down to the start of trading in tokyo and korea. nomura, booking a $600 million loss this quarter. that is $30 million more than the previous estimate. further production delays, toyota, the chip shortage, suspending operations at two plants. hotter than normal weather

creating price swings in japanese energy futures. the government expects the tightest supply balance this summer. let's look at the markets now with sophie. sophie: risk appetite evaporating. lower. little change in the wake of that. wallace's of more than 1% in tokyo. bnp paribas says the biggest risk is complacency around covid. india and vietnam outpacing the region, despite fears of the pandemic in those countries. indonesia stocks entering a technical correction tuesday, so we will see if that momentum continues. ahead of the fed minutes wednesday, the dollar holding losses, nearly hitting a three-year low.

société générale saying the dollar is drifting lower. inflation at the forefront, checking in on precious metals, gold and silver have rallied the past two weeks, prices nearly three-month highs as the inflation debate continues. haidi: the inflation debate does continue. let's get more analysis with our guest at standard chartered private bank. we are looking at this chart on the terminal, taking a look at this recovery rally for gold and silver. we are seeing this relative to upper commodities hitting the upper limit of the channel. are they still the best inflation hedges? >> for the time being, we think it is one possible hedge, at least for short-lived rises and

inflation. when you think about gold, one of the best indicators is real bond yields, what they do net of inflation. one support for the rally recently has been the fact that inflation has been rising, pushing that lower. this could continue in the short-term, at least. our view is it is temporary, but gold is one allocation in an investment portfolio, because if we get an upside surprise and inflation, gold should be the most direct beneficiary of lower real yields. haidi: fourth straight session of losses for the dollar. do you expect that to continue? have we hit a bottom when it comes to the greenback? >> you are right. a weaker dollar would support

commodities and gold. we do not think the dollar is lower. we'll still bearish on the 12-month horizon. today, we have seen bond yields net of inflation fall in the u.s., but as the economic recovery continues, we may see that cap continue to widen --gap continue to widen and set the stage for further dollar weakness. we think the australian dollar is it example of currencies that should benefit, and of course the pound sterling, which is a little bit more attractive. haidi: where does the chinese yuan stand? when it comes to economic data,

it seems more of a mixed picture these days. >> absolutely. that is because the direction of travel for policies is different than the fed, but the renminbi should see support in a weak dollar environment, and comes back to the same drivers, bond yields and china are higher than the u.s. even if nothing changes, we get lower inflation yields in the u.s., and that should contribute to the balance away from the u.s. dollar towards the chinese renminbi, so in asia, the chinese renminbi and the korean won, we expect those two currencies to be among the key beneficiaries of a weaker dollar in the next 12 months. a lot of that coming in the bond yields, and the korean won leveraged to the u.s. and economic recovery in particular. haidi: what other economies will

benefit, markets benefit from the economic recovery in the u.s., especially with more stimulus, monetary or fiscal? >> will come from asset classes in particular, we are bullish on equity markets. when you think about an economic recovery accompanied by inflation, that is an asset classes that still has gains ahead. we still think pockets of credit will do well. the thing with equities, unlike credit the upside does not appear capped. earnings continue to climb, which is different from credit, so the gap between yields and kicked credit in the yields and treasury can only narrow so far. that is why we think that will happen with the big beneficiaries. we still think the u.s. and u.k.

are the key metrics, but we are watching closely europe in particular, where news has been bad. if we see a turn in sentiment, that is a market we have on our radar screens in the coming months if there's changes. haidi: one economic planner is saying it needs to diversify sources of iron ore. how much of that is a real risk for the australian dollar? >> one can debate over the long term, but for the time being, what is the immediate price action? we are seeing that in iron ore and gold. while it might be diversified of the global level, the demand for commodities like iron ore will remain in place, and that is a sufficient tailwind for the australian dollar, so china is an important market, but the

demand along with other major global sources should remain in place, so that is a risk to keep in mind with the multi-your view , but the global demand picture should be sufficient for us. haidi: we started talking about inflation hedges, is bitcoin a viable inflation hedge for you right now? >> that would be a struggle. when you talk about inflation hedges, the real bond yield challenge, gold seems to serve that purpose, but with bitcoin, there's not a strong correlation between golden bitcoin. we don't see the relationship between the two. if you look at cryptocurrencies like bitcoin, we see more relationships with liquidity and sentiment, so it may have its own place, as an asset class, but for a direct hedge against

inflation through the channel of real bond yields, i prefer gold, because it is much more proven, that relationship. >> it is always great to have you. coming up, ambitious plans to change the makeup of electric vehicle batteries, why would could be a successor to lithium ion. this is bloomberg. ♪ this is bloomberg. ♪

>> this is "bloomberg daybreak: asia." president biden would delay a ban on certain chinese companies set to take effect on may 27 by two weeks, so officials can clarify trump era policies banning investments in companies owned or controlled by the military. three of beijing's biggest telecoms are included. senate majority leader chuck schumer says the u.s. senate will include $52 billion to bolster domestic semiconductor manufacturing. it is to enhance u.s. competitiveness with china. a measure to authorize the funding was included in a 2021 defense bill.

chuck schumer call the measure of very big deal. russia's representative to the iaea has denied reports they expect an imminent breakthrough to restore the iranian nuclear deal. he said on twitter that while significant progress has been made, unresolved issues remain. earlier, there were reports they were getting closer on the matter. the u.s. congress has passed legislation aimed at combating hate crimes against asian americans and pacific islanders. the vote will be sent to joe biden, who says he will sign it. the new laws would expedite federal reviews of hate crimes and provide grants to law enforcement. attacks have been rising during the pandemic. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> a japanese paper producer says trees could be used to

develop a successor to lithium ion batteries for electric cars. it is targeting new breakthroughs in the use of a fiber produced by refining wood pulp. the ceo spoke to bloomberg about pandemic-related changes in demand. >> the biggest impact from the pandemic is an accelerated decline in the demand for print paper. i doubt demand will ever go back to pre-pandemic levels. one positive side of the pandemic is the change in lifestyle has seen a focus on other areas, such as environmental issues and concerns for hygiene and health. for example, we saw the demand for paper towels, and we are seeing demand for cardboard boxes. >> you have said you will and

does ¥350 billion. what is the area you plan to invest in the most? bloombergradio.com we've added -- >> [speaking foreign language] translator: we've added the material under development is a big portion, earmark for strategic investments and concentrated on production. new plants and equipment. >> your company has developed a nano fiber. can you expand what this technology is and how it could be utilized and what to expect in this area? >> [speaking foreign language] translator: new growth businesses evolve around cellulose nano fiber. we have perfected various manufacturing process for different uses and customer

needs. our focus is to lower costs so the material can be used more widely in products. its property as a capacity to an energy storage material was a surprising discovery for us. we think there are more ways to use this material. we must move faster to innovate and find practical ways to use it and work with other companies. we hope to promote better understanding of the nano fiber. >> the company found out nano fiber has's battery storage function. there are lots of expectations for how the material can be used for electric vehicles. what do you expect for the technology in the area of electric vehicles? >> [speaking foreign language] translator: first, we can supply cellulose nano fiber for electric vehicle batteries. second, the material has a property that can whiten and

reinforce the frame. -- can lighten and reinforce the frame. cellulose nano fiber is also environmentally friendly. that will give us a competitive edge. when it is used to implement a true eco-friendly product, that is what we see is the future of our new business. >> you can catch that life if you have missed any of these interviews on the bloomberg, and dive into any securities in bloomberg functions we talk about. this is for bloomberg subscribers only. this is bloomberg. ♪

>> white house national climate advisor says the u.s. is working to catch up with china on ev investment. she said efforts to cut emissions across every sector will help to create jobs. >> the president is concerned that china is far ahead of us in the electric vehicle market, and instead of producing the technology of the future, we are importing them from somewhere else. it is time to shift that around.

the american has un-american jobs plan where he's looking to invest $170 billion to build out the electric charging stations we need for consumers to buy these vehicles and feel confident they can get where they want to go and back again. he is looking at providing consumer rebates at the point-of-sale and looking for low interest loans, grants, and other opportunities to work with battery manufacturing, so we bring that supply chain effectively u.s., instead of other countries. he is looking at opportunities to advance, not just the electric vehicles. i'm other sectors, to show the u.s. following the pandemic, we will not have to sacrifice. we will design a plan that gives our people in the mix of the best union jobs and grow those

jobs and grab the manufacturing sector back again right here in the u.s. >> the president's plan calls for $700 billion in infrastructure, including the electric car charging structure, but there is no movement in congress to get the necessary funding and regulation for this plan. what is the administration doing about that? >> there are a number of pieces of legislation that look to support the american jobs plan, but the president wanted to put together this to trillion dollar plan to show that we will be back on track to capture the future again. he wants investment that is right for this moment, a once in a generation investment, and that's what this represents, not just electric charging stations, but making transmission grid systems work, so renewable

energy is available across the u.s., investment in water and wastewater infrastructure, repair roads and bridges, going to look at the kind of investments in america that you would expect the president to make who cares about people and knows it is not about sacrifice, it is hope and opportunity that the moment brings. he will capture it. you are right. there are numbers of pieces of legislation that have not passed , but he said even today that we have folks sitting together, democrats and republicans, looking at what we can put together in a bipartisan way to move this plan forward, but this president has made it very clear that this plan needs to be bold. he needs to be big. it needs to meet this moment in time. >> if republicans were not that

excited about the jobs plan, the reaction was muted, so at what point does the president move forward with his plan? >> well, the point is not now. the point now is to work with republicans the best we can come within the president will make a decision on what to do next, but we know president biden has been in office for a long time working across the aisle. he is hoping to do that once again, but he will not wait forever. >> that is the white house national climate advisor. the latest check of the headlines. robinhood plans to reveal filings for its ipo next week. bloomberg has learned that while plans are advanced to the timing

and details could change. it would give investors a comprehensive look at the financials and risks with the stock. we are told that a bond will be paid maturing thursday, and this funding was secured by the state central bank, buying it at times according to its 2020 financial statement, and it was adopted tuesday after the new york times reported plans and report over the losses and holders. r investment authority --qatar investment authority forming an investment trust, and the potential deal would boost the trust portfolio to $2.6 billion. the sovereign wealth fund and the developer are aiming to raise 500 million pounds from the ipo. india plans to sell part of its shareholding in a bank as the government seeks to raise money

by devasting public stakes. a stock exchange filing shows as many as 36 may be sold, with another 22, an option. the price is set at $9.30 a share. as of march 31, india held a 3.45% stake. let's look at some of the stocks we are watching this morning. sophie kamaruddin is in hong kong. sophie: we are watching toyota shares, which rose to a record on tuesday, based on expectations it will remain resilient, and the carmaker adjusting production for completed vehicles in japan on that semiconductor crunch. nomura on watch, closing at the highest level since april 28, now attempting to put the

episode behind it, with the $800 million loss. we are watching another company that reported full-year operating income that the guidance. checking in on markets, let's flip the board. midweek in asia, this after the selloff in the u.s., kiwi stocks under pressure. australian futures pointing to losses of more than 1% for sydney stocks. we are watching miners, given the focus on commodities. nikkei futures pointing to downside moves. this is the region broadly speaking looking to the rising case count in india, which could be a headwind for the recovery, given that countries may be too complacent when it comes to the pandemic at large.

shery: right. so take a look at these commodities. we continue to get that inflation narrative, as these commodities keep gaining ground. we have seen that incredible rally. something real interesting happening, argentina trying to control runaway inflation, bee f inflation approaching 50%, so they're attempting to ban the exports of beef, and a lot has to do with china consuming so much of the world supply. argentina supplies 22% of china's beef imports. that appetite continues to grow. haidi: yes, as cattle herds dwindle in australia. lots of concerns that the ability and concerns over food

security as prices continue to skyrocket. coming up, we would talk about the property market, asia-pacific, the head of research is with us. 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.

♪ >> welcome to "daybreak: asia." haidi: australia and japan have just open for trade. top stories. asian stocks tracking u.s. declines, inflation concerns, sending gold and silver to their highest and more than three months. crypto takes a hit. digital tokens and china cannot

be used as payment. they say they are not real money. >> plus, a shift away from metals. will property prices bounceback? we will look at that ahead. korean markets are closed today. tokyo and sydney coming online. sophie is in hong kong. sophie: south korea and hong kong, appetite ebbing from the dimming recovery prospects, philippines cutting its gdp outlook. downside moves for japanese stocks this morning. the nikkei 225 and topix losing more than 1%. the yen's firm, holding a four -day game. jgb's gaining support as well. one japanese telco player, the government plans a new system to allocate spectrum.

checking the open and sydney, the aussie dollar near at one-week,, the asx 200 opening to the downside. copper minors in particular, prices rising to record. u.s. stocks capped a two-day drop, u.s. munis under pressure, falling, and cash treasuries study. this is ahead of debt sales in the u.s. and asia. switching out the board, oil and focus, brent retreating, after topping that level for the first time since march on europe's reopening optimism and appetite for the euro area. as the euro holds above 1.22,

the dollar is trying to break down again, while gold is attempting a second-quarter turnaround, that 1900 may be in the cards if u.s. economic data continues to disappoint. shery: right. our next guest says hi inflation and low rates will mean more deeply negative real rates on cash, increasing incentives to put it to work. let's bring in the head of equity syncretic at ubs wealth management. great having you on. with increased inflation, we could see volatility, right? so where is a safe place to park your cash? >> completely safe is always a bit of a challenge, but beyond equities, we have been positive since last year.

we have to consider we have strong earnings growth, but year-over-year, it is probably peaking, not weak, but has reached a bit of a climax. you mentioned the rates and the central-bank situation, so we believe there is still upside for equities, but what we also recommend more recently is to take a look at hedge funds. usually during the summer months after strong rally, and another first quarter strong and equity markets, there could be a correction during the summer months, so round it up with the hedge funds basic -- space. >> which could be the bigger risks for the market in the summer months? is inflation or virus a big curtail risk? >> i would say it has to be

inflation. the virus, even in regions, vaccinations are coming, and many emerging markets, and if you look at some of the studies we have seen, not that the vaccination rates are particularly high, but what is high are the number of people curing antibodies. therefore inflation, at least in the near term, when everybody opens at the same time, this could be the bigger worry for the market. >> to the other side of the question, taking a look at the resurgence of the virus in asia, i want to look at daily virus cases at the highest, not even including india, where the

situation is bad. is there a real risk we have this u.s. and u.k. exceptionalism, and a lack of investment interest as a result of the vaccine rollout and virus in asia? >> i doubt it. two reasons. first, they are shorter. these are still high numbers. india is past the peak. the country is realizing especially a country like india where they have limited room to really support the economy, and as a result, they have early onset on the central level and would not do the stringent lockdowns mike last year, so you get an improvement year on year, and therefore, the market is looking through that. i don't think it has a lasting impact. >> so one of the markets where

you see exceptional growth opportunities is china, so does that mean some of that regulatory overhang is over? >> i wanted to get your views on china, one of the areas where you saw growth opportunities. >> i would not say it is over. some companies are still under review. some are past it. we are coming towards the last inning. this is not the first regulation and china, probably not the last , but they come and go in waves, so typically, we have seen up to nine months, so they don't always wait until the final announcement. we are getting there. some companies do, some

don't, and these stocks, there is a key reason why china has underperformed, so we are moving towards the latter leg of that. it can get quite interesting. >> yes, this chart actually shows the selloff across china since the stronger crackdown started last year. what happens in the long-term, not only what is happening in china, but the crackdown in the u.s. with chinese abr's. we have that overhang of banning investment in chinese companies allegedly involved with the military. >> also, at least the u.s. side, you can never say never, but it seems like we had the climax of that under trump. major and real threats to force

delisting, it has quieted down a bit. wall street has a big business. chinese companies continue to want to list, so i'm not sure they want to close that door completely. otherwise, we have a strong correction. we do know regulation will end for some companies at some stage. it is a place where investors should look again. >> it is always great to have you with us from ubs wealth management. let's get you to vonnie quinn. vonnie: thanks. president biden has been touting his nearly $175 billion ev proposal that seeks to transform the energy. -- industry. he visited a ford plant to get a sneak peek at one vehicle. ford says the truck will be a turning point in the electric

vehicle revolution, as the u.s. takes on china in the race to the global market. >> the future of the automobile industry is electric. there is no turning back. the american automobile industry is at a crossroads. the real question is whether we will lead or fall behind in the race to the future. vonnie: overall, covid-19 cases in the u.s. are going down, but when it comes to a rare inflammation in children, the cdc says 3500 cases of the inflammatory syndrome has been diagnosed and kick since early in the pandemic, and the real number may be higher. large parts of india struggle against the rise in covid cases, the financial center of mumbai reporting fewer casualties. it has reported just under 2800 deaths since the second wave

began march 1. that is one quarter of more than 10,000 deaths in new delhi. officials say the health system was better prepared. colonial pipeline says its communication system is back in service after facing network issues. the supplier has been trying to recover from the cyberattack that forced to shut down, crippling oil and diesel supplies across the southeastern u.s. it cause widespread gas shortages and price increases. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> still ahead, how office rents are recalibrating in asia after the pandemic, one global property consultancy joins us later this hour. >> up next, sources say the white house plans to push back

the deadline for a chinese investment ban. we will have more next. this is bloomberg. ♪

>> bitcoin slumped after the chinese central bank reiterated cryptocurrencies cannot be used as a form of payment. let's get to our correspondent in singapore. never a dull moment. what is the concern we are hearing from the china and pboc? >> it is that everybody gets nervous when china does something like this, and issues this. it is the same thing with the u.s., if you have a major

government saying we are thinking about crypto and want people to be cautious, but there is so much mining in china, according to estimates. it may affect the crypto industry if china wants to do more. at this point, it is mostly a reiteration. >> what does this mean and where do strategists see bitcoin going from here? >> even aside from that, they see more weakness, before looking at the technical levels. 42,000 dollars, $40,000. it is trading around $43,000 right now. a lot of people still see momentum gaining again into the end of the year. if you look at the coin over the past few years, you do have reason to take heart, but crypto

is definitely volatile still. >> at the same time, we are hearing markets offering fx trading pairs, so clearly there is still interest. is this a buying opportunity? >> it could be. institutions are looking to get in. they are seeing client demand. they say this in response to what clients want, to trade crypto and traditional currencies, so that is one. others are looking into it. all sorts of stuff. but this does remind people that crypto is extremely volatile, so this latest episode with elon musk's tweets, they might be throwing caution into the mix now. >> the biden administration

plans to delay a ban on u.s. investments in chinese companies by two weeks, this, as officials try to clarify a trump-era policy that has confused wall street. let's bring in our executive editor in beijing. any idea why this review is delayed? john: you mentioned it did cause some confusion, this ban on companies that u.s. identifies as being controlled by the chinese military. the yuan orc last week, we had xiaomi on the blacklist. they sued in got a court to agree with him. last week, the u.s. government agreed to take them off the list. the biden administration says it is reviewing it, and wants to

strengthen the case against some of these companies as to why they are on the list. >> we talked about it as a case of continuity rather than change, when it comes to the approach to beijing where the underlying principles in dealing with beijing. are we likely to see a change on this investment ban? john: there was a lot of hope that there would be a dovish turn in the relationship. that has not come to fruition. biden has doubled down on the policies towards china. the biden administration said they want to build on top of that. the biden administration is doing a review of all china policies. there might be some changes, but the general direction of the relationship is probably one that will remain tense for some time. >> how much can the biden administration really do, when

we have seen this quite consensus in washington to have strong, harsh policies against china? john: there is a litany of legislation going through washington. chuck schumer has a big where they will spend to build semiconductor fabs to compete with china. there was a request for more navy ships from the pentagon. it is probably the one thing that has overwhelming bipartisan support, a tougher stance on china. >> our greater china executive editor in beijing. let's look at the stocks we are watching in tokyo. sophie: japanese telco stocks on the move, following report the government will salvage a system to allocate spectrum to promote competition in the space among players.

shares of one company down nearly 3%, the most since may 13, this morning. some of the lines regarding the telco industry, local news reporting they plan to allocate numbers to discount carriers. checking on softbank shares this morning, falling to a january 29 low, falling nearly 3%, the company planning selling ¥405 billion at a maturity of 35 years. in january, softbank held its first event with these targets. haidi: sophie kamaruddin with the movers. next, women moving closer to the top at j.p. morgan. we will get the latest on the move to be j.p. morgan successor. that is next. this is bloomberg. ♪

>> here is a check of the latest business flash headlines. robinhood plans to reveal filings for its ipo as soon as next week, as it looks at late june for its debut. bloomberg has learned that while the ipo plans are set up, the timing and details should change , giving investors a comprehensive look at the financials and the risks associated with the stock. ubs has started cuts across his largest divisions come investment banking and wealth management, to save $1 billion over the next three years. bloomberg learned that reductions range from managing directors to junior employees, affecting as many as 700 positions in one area alone. the ceo has been looking to cut costs and digitize bank offerings.

bank of america ceo brian moynihan says it is boosting its minimum wage to $25 per hour by 2025 and told cnn the bank would require u.s. vendors to pay employees dedicated to the bank $15 per hour or more. the move follows four years of pay increases that brought the minimum wage to the current rate of $20 in 2020. >> the race to the financial crown has grown, as the successor to j.p. morgan draws to a conclusion. two women have been pushed forward to the front after being named co-heads of the consumer and community banking division. let's get more details from su keenan. how would this race shape up? su: it is the largest management shuffle in years, naming

two coheads of this massive business. that puts them directly in line to succeed jamie dimon, should he step down in the years to come. it was a spot held by one of jamie dimon's top two lieutenants. he is now retiring, believing one person is the president and chief operating officer. he was widely seen as an obvious replacement for jamie dimon, should there be an emergency in the short-term, but is not a likely candidate in the slope, orderly handoff. what does that mean? wells fargo analyst, one who has followed it, said one of the two is likely to become the next ceo of jp morgan and adds open this time does feel different -- adds, "this time does feel

different." only citigroup has named a woman ceo, jane fraser, appointed in the last year. shery: what are analysts saying about was a succession might happen? su: jamie dimon has held the job since 2006. whenever he is asked about when he plans to retire, and he had some health issues among other things, he has dodged the question by saying in five years. the board, according to the latest data from jp morgan has made it clear they want him to stay in place for "a significant number of years." others say that could mean at least another five years. according to analysts, which includes top women in key spots, this is the clearest sign yet that jamie dimon has started the

clock on the race to succeed him. everyone agrees that succession will come soon, and we know jamie dimon has repeatedly led the bank to record-breaking profits, becoming an industry leader since the financial crisis, and also viewed as a leader with the latest covid crisis. the bank has told u.s. staffers they would no longer be required to wear masks in the office if they are fully vaccinated. he has led the move to reopen offices that partially been shuttered during the pandemic, and jamie dimon has been very outspoken, being foremost among the banking heads to say he wanted the entire u.s. workforce back and ready to return to office at the beginning of july on a rotational basis. again, no one is expecting jamie dimon to leave soon, but a clear path for women has been

established. back to you. >> thank you. up next, the widening gender pay gap amid the pandemic. this is bloomberg. ♪ oomberg. ♪

♪ >> disappointing miss on consumer confidence out of west australia. the index for the month of may fall into 113.1. a pullback after three consecutive months of higher gains. also a contraction of 4.8% after a jump of six. -- of 6.2%. the wages we are expectations of

family finances as well as expectations of economy we are seeing decline in consumer sentiment. let's get more on how markets are faring. sophie: the aussie dollar holding fairly steady. one week high in face of the greenback weakness. losing more than 1% to halt a three-day gain. it is falling about 40%. after the company says it's -- its irish regulate a unit was having regulatory concerns. this after it affirmed its full year guidance and announced plan to overhaul its organizational structure. we check in on japan this money.

the nikkei falling more than 1% -- we check in on japan this morning. we learned from local media the government is planning to introduce a new system to allocate mobile spectrum. we do have softbank group shares weighing. planning to sell 405 billion yen worth of hyper note. chip-related stocks are falling in tokyo as well. the government is urging businesses to boost investment to expand domestic capacity for chips. the startup gauge in tokyo. it is gaining ground and outliners gaining more than 1% this money. shery: and korean markets are on holidays but we hear from south korea's gender equality minister chung-young ai, who says a debate over whether women should have to carry out military service is inflaming flaming gender divisions. lastm month a presidential

candidate set off a social media storm by suggesting women should have to serve. chung address the claims and discussed south korea's efforts to improve lives for women. >> [speaking korean] >> the debate on women serving in the military did not come from trying to achieve gender equality. but from voices that would experience the same disadvantages that men did. it should be more about whether korea's military is inclusive enough to accept such changes. as way we see it -- the we see it, we need to improve the environment. this includes giving due credit to those that have finished their service. this should not justify discriminating those who did not serve in the military, such as women or people with disabilities. after the seoul election results the debate has been driven by gender and a lot of distorted analysis is made the

conflict were -- made the conflict worse. >> coronavirus has exposed some of the problems of south korea, including gender inequality. in particular, there have been some studies that the pandemic widened the gender income disparities of the country. why do you think that happened? chung-young ai: since the pandemic the employment rate of women has decreased significantly compared to men. many women are employed in service sectors where face-to-face contact is essential, directly affected by coronavirus, more than men. we should expand our job-training programs for the women who were forced to discontinue their careers after pregnancy or childcare. we are making an effort to deal with this problem. >> south korea has one of the lowest birth rates in the world. how do you plan to tackle this problem? chung-young ai: the low birth rate is one of the most serious social problems in south korea.

since our fertility rates reached 1.3 a few years ago we prepared measures bracing for a longer decline. it's fallen even more since then. it is now 0.8. the low birthrate should be tackled with the gender equality platform. there are issues that young people in south korea must deal with if they are to have a child, such as housing, and safety. the cost is too high. when it comes to south korea's low fertility rate, there is quite a diverse -- of feedback from experts. financial costs are indeed factors to consider, but it is the reality that women are the ones bearing the burden, getting the careers cut short. we live in a society where the expectation of women and childcare are far greater, which is why we need to change our culture and regulation and organization so that both men and women are equally responsible for childcare. the birth rate will only

increase when we reach real gender equality in our society. shery: south korea's minister for gender equality and family chung-young ai there. she was speaking with bloombergquint plenty more to come -- she was speaking with bloomberg. plenty more to come on "daybreak asia." this is bloomberg. ♪

>> this is "daybreak asia"

i'm vonnie quinn with the first word headlines. janet yellen is said to be traveling to london to attend a g7 meeting with her counterparts. it would be her first overseas trip since taking office. the u.k. announced earlier this month the meeting will go ahead as virus concerns subside. the meeting comes as the 2021 deadline set by the g20 group l ooms for reaching agreement on reaching a global minimum tax. chuck schumer says the u.s. senate will include $502 billion to bolster the semiconductor manufacturing in a bill to enhance u.s. competitiveness with china. a measure to authorize funding to support the domestic chip industry is included in the defense bill. the addition to the china bill remedies that. schumer calls the measure "a very big deal." senator schumer: this legislation will not include an

historic an immediate infusion of federal money in the semi conductor industry to boost domestic production and shore up critical supply chains. this is a very big deal. vonnie: the price of beef is expected to go up globally thanks to a change argentina is making. the south american nation says it's -- beef exports for the next 30 days as inflation approaches 50%. the effects china which relies in argentina for 22% of its beef and will now have to get the protein elsewhere. beef prices have surged on short supply during the pandemic. carrie lam is defending the freezing -- assets. she told reporters it was necessary under hong kong's new national security law to protect the safety of all chinese people. lai was accused of taking part in local assembly in 2019.

already serving 40 months in jail and similar charges. 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. >> materials -- reported a first-quarter profit that missed estimates and announced guidance below consensus. but the ceo told us the company will tick up on market share. >> you know, this is now the eighth straight consecutive quarter we actually deliver results with growth of a market and strong returns globally. and then what's very important here is that we deliver these results before covid at the onset of covid, and then currently during covid. what's very important, also, is that this past quarters we delivered record record -- this past quarter were delivered

record results. in north america, europe, and asia-pacific. as you have indicated, in all three geographies, the various level of market conditions. here in the u.s., we are right now having a very good tailwind of strong demand for housing, and in australia, with home dealer program, the stimulus put in place like to like, it kick started a very strong tailwind in new home construction. in europe, it has really, the market has been a little bit slow. it's really more about renovations in most of western europe. despite those varying degrees of the housing market conditions, james hardie, our business model is offering the right solutions for the markets to allow us to gain that share. >> part of this reflationary surge.

a shortage and soaring prices across the commodities there. talking about lumber, to co pper, to iron ore. i wonder how that plays into your forecast. >> take example the market in north america, typically the u.s. the lack of lumber as well as the lack of labor has really been an issue right now in terms of new home construction to completion. and certainly we will see a slow down a little bit this past month with the result that was published this morning. for us, for james hardie in north america one third of our business is exposed to new construction, with two thirds in renovation and remodeling. whereas, right now, as more and more people work from home, there is also a to renovate and

re-decide and change the exterior of their homes. that type of activity, lumber is not an issue. for a company like us, where we offer the right solutions in terms of delivering -- beautifying the home, the exteriors, the same time the right protection for the home. so there is an opportunity for our company to continue to grow despite the varying degrees of fluctuation within the market today. >> yet, the markets seem to think your guidance was a little conservative. your stock fell despite the record performance or talk about. >> for us, it really is about continuing to grow above markets by taking a share away from other categories, particular those that require a lot more labor and, for example, in bricks or stones or stucco where

it takes longer time to build. and the cost of construction is high. our j. hardie products are lightweight. they are also faster to construct. it is a big valley. we delivered -- it is a big value. we delivered to the homeowners that want that aesthetic look. and protecting the homes at the same time. those elements including fire protection, for example. >> up next, knight france says the drop in markets rent is expected to decelerate this year. we get the details from their head of research christine li. this is bloomberg. ♪

>> covid-19 has not just change the way we do our jobs. it also kick started a broader push to rethink the world of work. some firms are embracing a hybrid home office configuration. others are cutting down an office space, investments. our next guest says office market conditions are expected to remain soft for most of the year. the rental rate is expected to decelerate his economic conditions improve. let's bring in christine li at

knight frank. how is this recovery going? do we know enough about what the post-pandemic world of work looks like? christine: thanks for having me here. for any location, the tenant friendly environment is here to stay for a while longer. the data from knight frank, we try 20 markets across asia pacific and all but eight of them are showing stable or increasing rents. in the market -- we have seen especially in the gateway markets, for example, in the first quarter, we saw rents going up by 2.6%. on the back of supply and strong tech demands. and other markets such as

-- for taipei it is a story of the semiconductor industry. so, to answer your question, the future workplace, there are a lot of talks about hybrid working models. in asia, i think a lot of occupiers have expressed concerns about the hybrid working model. and because of the quick pace out of this covid, i see a lot of occupiers are still bringing the workers back to the office. we see a lot of construction -- from the hybrid working model. in fact, according to our phone server, a portion of asia occupiers are to looking to expand over the next few years. >> the bank that spurred this conversation looking to downsize its office footprint. you said it was likely to be an ongoing trend.

how much do you think of this will impact -- how much of this do you think will impact the markets? christine: the bank has been ongoing since the global financial crisis. so this is nothing new. what is new is that some of the global banks we have talked to have said they can go a lot more -- they are downsizing their footprint. they are looking at decentralized locations. for example, in the cbd, in some markets, even in hong kong - = ther is a lot of storyabout the decentralization strategy- which will play out nicely in the developed markets. >> when it comes to the residential market, how strong has demand been? because we continue to hear these measures coming from governments like china or south korea to pool the property sector. christine: the financial market. it paints a much rosier picture.

if you look at across the board and asia-pacific, most of the markets havve record -- have recorded rent prices and rent across the board since the third quarter of last year. and some of the markets have seen momentum gaining stronger. for example, in singapore, we are tracking a lot of the -- the latest view done by a group, they buy up the entire office, i'm sorry, residential block in the most expensive district in singapore. in other markets, there is always a lot of domestic demand catching up. and foreign buyers -- that because of the border closures. the local demand is very strong, encouraged by the low industrial environment, which is very encouraging and markets like singapore. we saw in the first quarter

rents, the prices increased by 3.2%. that is a tracking -- increased by 3.3%. that is attracting attention from the regulatory authorities. there is still a lot of room to grow. >> great to have you on. let's get more on how the office will look post pandemic. will 20 year office leases and traditional headquarters be a thing of the past? wework certainly thinks so. >> are not looking forward to going back to traditional way of signing a 20 year lease, setting up these nonclassical headquarters. that's dead. the office is very different today. most of our larger customers, most valuable companies who basically -- their employers because they do not know how many days they will work. they do not know if their businesses is going to grow. if you are sitting in the only company of the world that has over 1000 buildings in the most

important cities in the world, the demand for wework space today is higher than it was prior to the pandemic. the pandemic allowed wework to reinvent itself, to learn how to operate in a most cost flexible basis. now we have wework, like i said before, wework, should be a profitable company by the end of this year and the beginning of next year at the latest. demand for this flex double office space is higher than ever. i think the world is going to find that more flex ability becomes the most important part of the company can offer its employees. >> the crypto question. it announced it would accept payment -- it bitcoin. today we saw elon musk say tesla would no longer take pic on over concerns it would have -- no longer take bitcoin over

concerns of the impact it has on the environment. is that the right move? is that something we would like to see wework follow, or is that a reaction to a short-term trend? >> i mean, the reason why we decided to accept cryptocurrencies was because our customers were asking for it. one of the things we do is we listen to our customers a lot. and we have to. they tell us the type of set up so they want and the crypto works where employees say, we would like to pay in crypto. we have accumulated a significant amount of crypto to pay for rent, because rent becomes an important part of many companies. at the same time, the people pay us in crypto. to us it is just another currency. we have u.s. dollars, euros, pounds, crypto, japanese yen. to us it makes no difference.

when our customers ask for reimbursement in crypto, we pay in crypto. wire payments in cryptocurrencies. "i would like to pay in cryptocurrency." we are going to listen to what our customers want. they demanded they wanted to paint crypto. that is how we do crypto for our payment -- they demanded they want to pay in crypto. that is how we do crypto for payment. ed: do you have a level of money going in and out in the form of crypto? >> today it is a very small part of our business. i think in the beginning, crypto was a mega trend. crypto cannot be ignored. if customers want to pay in crypto more, we except crypto. if customers want to pay and traditional currency, we except for a payment in traditional currency. to us, this is nothing more than to help our customers satisfy some of the needs our customers are asking for. our first customer, large one

was coin based. not a lot of people know that the headquarters is wework. being the largest exchange of cryptocurrency, they had, they were the first customer to pay us in cryptocurrency. >> softbank group coo executive marcelo -- speaking to ed hammond. qatar investment authority is said to be in talks to inject -- city developments in singapore. the potential deal would boost the value of the trust portfolios to $2.6 billion. we are told of sovereign wealth fund and the singaporean developer are aiming to raise 500 million pounds in a sterling denominated ipo. china -- has wide funds to repay a $300 million 33% bond maturing on thursday. bloomberg reported monday that

they secured its funding by state owned bank to repay debt for august. buying it time to complete 2020 financial statements. "the new york times" reported plans of an overhaul that would inflict significant losses on bondholders. the journey from a safe bet to bad news continues. what are you watching on this front? >> that's right. it has been rocky. the dollar bondholders. as we see it fall to record lows. you can see the 4.5 perpetual note, is trading about 49 cents on the dollar. the report may provide some support as our bloomberg intelligent analyst points out, it is the first positive note since early april. which is just that the government and regulators are working on resolutions for debt. expecting a final resolution to be allowed to -- be announced in july early august.

our markets covers continues. at the start of training and shanghai. back to bloomberg markets, the china open. 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 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. (announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back, obliques, hips, and glutes. get incredible results in just five to ten minutes a day. the aero trainer supports over 500 pounds, and inflates and deflates in seconds. check it out at aerotrainer.com. that's a-e-r-o trainer.com.

♪ >> it is man :00 a.m. in beijing and shanghai, welcome to bloomberg markets: the china open, i am tom mackenzie. >> and i am david english. we are counting down to the open of trade on the chinese mainland. inflation fears in the markets. asian stocks fall following the risk-off mood in wall street. investors are hedging and they are buying