>> very good morning and welcome to daybreak australia. sophie: i'm in hong kong. we are counting down to the asian major market open. shery: the top stories this our. stocks on wall street fall from the latest economic reports overshadowing dovish reassurances from federal officials.

amazon faces its first antitrust lawsuit in the u.s. the attorney general for washington, d.c. suing the retail giant for policies that allegedly led to higher prices. melbourne's covid-19 fears rise with increased restrictions. authorities are racing to track down thousands of football fans after a person tested positive and attended an asl game. haidi: we are getting some news, potentially looking at the extension of the virus emergency measures. this is a courting -- according to europe saying tokyo is considering seeking an extension of the virus. this comes as we have the drumbeat towards the tokyo olympics and also coming as the u.s. government says america should avoid traveling to japan. just one of the aspects as we continue to see virus cases see -- stay high in the country. shery: take a look at wall

street, we are seeing u.s. futures rising after the s&p 500 fell, fluctuating throughout most of the session and ending in the red. the nasdaq 100 outperforms. we had new u.s. home sales outperforming and consumer confidence slipping. banks are one of the big losers. this ahead of the ceos of the largest bank, including j.p. morgan and goldman sachs testifying before congress. wti under a little bit of pressure. this after inching up in the new york session with a continued recovery in demand is also offending some of those concerns of iranian supplies. haidi: that rising u.s. inflation is undermining consumer confidence in putting a break on new home sales. even as the federal official said it's only a temporary problem. our bloomberg economic and policy editor kathleen hays is here to connect the dot plot.

we've got the consumer picture. there is concern that these rising prices -- prices will impact the fed. the fed is still saying transient. kathleen: that is what they are saying, that's what they see, that's what they hope, that's what their forecast is as numbers continue to rise. let's look at consumer confidence. his goes back many, many years. the number did not climb munch. the expectations plunged almost 10 points. that's the part that correlates best with the money we end up spending. and maybe even more striking than that, one year inflation expectations, this is a volatile type of reading when you ask people what they expect at a time make this, 6.5% is one of the highest readings they have got in the consumer confidence series. buying plans six months out, appliances fell sharply. in the home sell they fell about

6% in april, median price surging 20.1%. the biggest jump since 1988, what's going on. construction costs are up. lumber prices, low mortgage rates, people are stepping up to buy as prices rise, but that is another way that the price increases are hurting a very important market. the vice chair again today said he thinks these inflation price increases are surging up coming out of the pandemic, that they are going to be temporary. he also said as the april meeting minutes said, that maybe they are going to be able to do an upcoming meeting and start discussing their plans for tapering bond purchases. they are giving us that concession. randy quarrel from the board of governors, charles evans from the chicago fed also saying that they think these price increases won't be lasting. shery: in the meantime we heard

from morgan stanley's james gorman. interestingly he thinks that the fed will start tapering and raising rates much sooner. he is even beating his own economists. kathleen: exactly. it goes to show how everybody is on this. people really aren't sure, but when jim gorman says his opinion is what he sees and he knows the fed does not see the same thing. that's look at exactly what he said. my personal view is raising in the early part of next year, 2023 is the projection. most fed officials still aren't looking for rate hikes until 2024. he said also after many years of inflation, we see price increases getting people's attention. you mention the dots, let's bring them up, it does show you that 2021 is not just jim gorman suggesting it, there are four fed officials right now who are, as you can see from that line, those four little dots that do see great heights by the end of

next year. there is another cluster by the end of 2023. most are looking for something much further out. at any rate, this is a debate that is not going away. it's interesting to see it as they continue to make their argument. i know that's what they see. it will be interesting to see if the price increase continues. and how consumers will react. shery: what exactly transitory means. our global economic editor kathleen hays. we will discuss us with our next guest who says that a one-time rising prices is not a true inflation problem. jay mcdonald joins us from chicago. great to have you with us. prices rising at the same time we continue to see the global supply chain just ructions with -- disruptions and shortages in semiconductors. not going away anytime soon. does this concern you? >> we think this will be a one time jump. if i have to look at it and economists forecast or ceo

forecasts and what the market is saying, i would take the market right now. it's instructed to look at what's happened since we had a very hot recent cpi rate in the state. the 10 year treasury went up to one point 7%. it has backed all the way down to 1.56. all of that has happened and reduced inflation expectations. so, as i talk to business owners in the u.s., they are very confident that it is hung up now and it will raise prices, and what they will do in a year or two, they are much more uncertain that this will be a continuing cyclone. >> if you are setting up for that sort of scenario, how do you position your assets? >> and a 60-40 portfolio we are at a 68% risk assets, mostly stocks, and 32% in bonds. it's more because we think that the nominal return is just not that attractive. we don't see rates moving up

meaningfully from here. we are overweight equities and overrate -- overweight natural resources. i want to thank them from giving us some hedging case we are wrong and the inflation front. even equities can do fine as light as inflation stays below the 3%-3.5% rate, which is a fed does not raise rates in global recovery. haidi: take a look at the bloomberg dollar index. it is nearing six years low -- six year lows. what does this mean outside of the u.s., particularly asia and em? jim: we do see our biggest overweight's in the developed markets outside the u.s., so think japan, for example. europe has the most leverage to global economic recovery. i have to remind people all the time that if you look at the revenue of european listed

companies, 50% of the revenue comes from outside of europe. and they are more exposed to the cyclical part of the recovery, industrials and financials and materials and energy, and less exposed to technology, which was last year's big winner. so i do think that it paints a picture for international performance of european and japanese stocks. maybe doing better than the u.s. developed markets over the next year. haidi: i'm guessing your preference from japan is purely based on a value play? jim: it's based on a value play but also global recovery. there is definitely exposure to or a rebound in exports and a look at japanese tool orders. they should do well. you look at australian stocks, it should be a benefit from the recovery in the materials sector. and also the exposure of the financial sector of australia. it is essential for some normalization of rates.

if it doesn't happen in policy, investors are certainly positioning for that. shery: globally, i think even the commodities market was positioning for more spending coming from the u.s., especially on the infrastructure. we went from $2.3 trillion to $1.7 trillion, and that's not even making it through congress. jim: i think that would be dwarfed by what's happening in the real economic recovery. it is over eight years. that is a much smaller number when you think about the incremental, annual demand. it is worse by the fact that we are seeing economic growth numbers at record levels across many of the developed economies. haidi: always great to have you with us. chief investment strategist there. let's check in on how the markets are shaping up. sophie: several southeast asian

markets are closed alongside india's money markets. elsewhere futures are looking mixed in asia after the regional index cap. the best winning streak in five weeks, led higher by china. we do have aussie futures looking to see some pressures. pulling up the chart in the terminal as we see it on a pretty good run. except for the best monthly gain since may of 2007 set for an eight month event. this is we are seeing underpinned by the commodity of price gains. as jim mcdonald just pointed out, the recovery is helping provide a boost. bloomberg economics is talking about tight fiscal policy. delaying policy normalization and australia, even the government's budget forecast and weaker gdp profile. we do have news -- a new zealand policy decision due this wednesday. no change expected, and we are looking at any signal on

tapering from governor. adding 4/10 of a percent ahead of that. the kiwi dollar old bank steady, trading near a one-week high. we are seeing a pickup in overnight volatility. kiwi bonds are extending. the are seeing it for global debt after we saw 30 year yields a fall to a two-week low. but a strong tear option adding to positive sentiment for later sales for the u.s. this week. check out spot gold holding steady. this after raising a year today losses. this putting it on course for the best month since july. capital markets are seeing the resistance at 1960 on the bond rally and teetering u.s. dollars. shery: still ahead, bitcoin resumed its line is the energy usage debate with investors will discuss the outlook with -- who has the largest digital asset exchange. legal trouble for amazon. the tech giant is hit with its first antitrust lawsuit ahead of

an expected $9 billion deal for mgm. the details ahead. this is bloomberg. ♪

>> you're watching daybreak australia. the european union has moved to impose further sanctions on belarus after its forced landing of orion air jet over the weekend and arrest of the opposition journalist on board. the u.k. close iteris these -- closed its airspace. they are calling for the immediate release of the detained journalist. president biden welcomed the response. the first face-to-face meeting between president biden and vladimir putin is expected to take place june 16 in switzerland. the white house says the leaders

will discuss a full range of pressing issues as the u.s. seeks to restore predictability and stability for the u.s.-russia relationship. the two will discuss issues that include cooperation on the fight against the pandemic. a powerful cyclone is set to slam into india on wednesday. the second in less than two weeks. officials are evacuating whether one million people as forecasters predict the cyclone will dump heavy rain and bring winds as high as 185, or's an hour. last week storm left dozens dead in the western state. president joe biden has called on congress to pass the justice and policing act by meeting members of the floyd family at the white house one year after the murder. floyd family also met with the vice president at house speaker. floyd's brothers after the meeting that he's thankful for what's going on. former police officer derek chauvin was convicted of floyd's murder and will be sentenced

next month. >> this is the thing, if you can make federal allowance to protect the bird, which is the bald eagle, you can make federal laws to protect people of color. >> global news, 20 for hours a day on air and on bloomberg quicktake, powered by more than 27 hundred journalists and analysts and more than 120 countries, this is bloomberg. shery: amazon is facing fresh legal trouble. they are being sued by the attorney general from washington, d.c., accusing amazon of engaging in anticompetitive practices that have raised prices for consumers. it's an antitrust lawsuit to target amazon in the u.s. let's bring in our tech reporter in seattle. spencer, it was interesting the attorney general went ahead and filed this case on his own instead of teaming up with states. what exactly is this suit about? spencer: the attorney general in

washington, d.c. is alleging that amazon drives up prices by the way a uses its site and determines what products people see. and what the issue here is, if amazon sees a product on another site like walmart.com, or some other competing price at a lower site, then it's available for amazon. it will bury the product in search results and make it harder for shoppers to find it. the effect -- the effect is that merchants on amazon, what they will do, often times is, rather than lower the price on amazon, they will raise it on competing sites. that's where it's getting some trouble with potential price-fixing problems. haidi: this is a fairly small market. d.c. has about 600,000 people. is this significant more that this potentially sets a precedent?

spencer: not just precedent, but knocks the snowball off the mountain. so in the u.s. state attorney general in this case, the capital of washington, d.c. attorney general, a lot of times the attorney general's will follow one another. this action will encourage other states to jump in and potentially affect a much bigger part of the u.s. population. especially big states like california, new york, texas, though states like those get on board, then generally everyone will join in. shery: we are also hearing that we could get that deal from amazon to buy the movie studio mgm. what do we know at this point? spencer: just that amazon will be interested in having more movies and its video library. the value that is becoming higher. amazon wants to be a go to source for video entertainment and streaming. this will be a way for them to

lock in a lot of popular movies and almost become a turner classic movies of streaming with popular titles like the bond films and the rocky movies. haidi: still ahead, the plane hijacking incident in belarus in the spotlight on russia. we will discuss how the u.s. response when biden sits down with putin. this is bloomberg. ♪

>> yesterday we had no clear evidence, no proof of the role of russia, which is why it was not included in our

deliberations. but i can obviously address it. >> the level of interference, both with the use of spies we saw recently, and with the manipulation, has really become alarming. >> we are relief -- reaching a truth moment in our relationship with russia, which makes us think we should reintroduce the terms we have set up. haidi: eu leaders are addressing ties with russia after the force landing of a ryanair flight in belarus. president biden will speak in person with the russian president about the forest landing of the ryanair plan. the leaders are scheduled to meet in geneva in three weeks time. our senior reporter jack fitzpatrick joins us now. talk about the priorities for the u.s. at the summit, especially in light of the latest events. jack: jim sought -- jen psaki, the white house press secretary said the issue of belarus will come up, president biden will raise that issue.

there are a few other clear priorities for the president, for the u.s. one is cybersecurity. clearly after the hack of the colonial pipeline, which the fbi has attributed not to the russian government, but to a hacking group that may be in russia, that is a clear priority for the u.s. another is the amassing of troops near the border with ukraine, which has almost been a bit overlooked in the news cycle, but is a clear concern from the u.s. perspective. then there are broader human rights issues, the treatment of a alexei navalny. keep in mind when we are looking for the kind of tone that is going to happen in this discussion. a few months ago, president biden, then a candidate, called putin a killer. at that point putin wanted a debate with biden, a public debate. so i think that probably tells us something about the tone, in addition to the clear priorities of belarus, cybersecurity,

ukraine, and human rights. shery: really coming at an awkward time, right? when we saw moscow throw its weight behind belarus when the u.s. is set to sanction it. jack: it may be an opportune time if the u.s. really sees russia as may be the main issue. because belarus has been such a clear ally of russia, this is not something where the u.s. looks solely at belarus. the fact that the president plans to raise this issue with putin himself, this is clearly an unexpected issue for the u.s. , and a surprising issue with the force landing of the ryanair flight. but if the u.s. is planning to take up all of its issues with russia, this just adds one more issue to the plate. so it's certainly relevant to a conversation they were planning to have anyway. haidi: a long list of

grievances. biden is more critical of putin and his predecessor, how does his history play into this? jack: clearly biden is trying to establish a much tougher tone towards putin himself then former president trump. as i mentioned, outright calling putin a killer. a negative back and forth between them. biden and secretary of state antony blinken have said that the u.s. is not going to go out of its way to take shots at russia, but they will push back on them when necessary. but clearly, it's important to keep in mind that this is something the u.s. was looking to set up. they wanted to proactively reset the way they talk to and about russia and create a contrast with what we saw from trump. shery: we will be watching closely. june 16 is the summit. bloomberg senior reporter jack

fitzpatrick. is a check of the headlines. goldman sachs is forming a joint venture with china's largest bank. goldman sachs will take out 51% stake, it will boost the u.s. funds distribution network and access to wealthy customers on the mainland. icbc has 850 million personal banking clients. goldman sees investable assets in china, surpassing -- in china surpassing $70 trillion by 2021. there was a pay rise in a recent study shows two thirds of ceos have a billion dollars in assets with an increase of compensation. capital one financial spots had the biggest pay rise at 161 percent. however, not everyone got an increase with the ceo of bank of america, wells fargo seeing their pay decline. shares are set by investors seeking a commitment from the

company on climate change. an activist investor group, led by a hedge fund named engine number one, is pushing to replace four of the oil giants board members with those more open to clean energy. coming up next, authorities raised to clamp 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.

haidi: you are watching "daybreak: australia." the u.s. secretary of state kicks off a middle east mission with a pledge to aid reconstruction efforts in gaza. support for israel's right to defend itself. after meeting palestinian authorities, he revealed the u.s. would provide millions of dollars in palestinian aid, as well as immediate disaster relief to ensure hamas does not

benefit from the funds. >> we are focused right now on the urgent needs that exist in gaza, the urgent need for rebuilding and reconstruction. then looking to see actions on the part of both australians and palestinians that we will take down tension. >> australia has extended the release measure ensuring workers will not accidentally create a threshold for invoking corporate tax. it was extended from june until the end of the year. it ensures foreign firms will not -- a permanent establishment just because employees are temporary located there. moderna says its covid-19 vaccine is highly effective in 12 to 17-year-olds.

it paves the way for regulatory submissions around the world by early june. the company says it was between 93% and 100% effective. it is on track to possibly become the second shot authorized in the u.s. for that age group. the weekly covid infection rate in hong kong has dropped. new cases dipped to eight from 17 a week earlier. more than 2.1 vaccine doses have been administered in the city. 12% fully vaccinated. the government says it may donate to vaccines -- vaccines to country more in need. 840,000 unused doses in storage will expire in august. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin, this is bloomberg. haidi: the reserve bank of new zealand is expected to keep parties -- policy settings on hold.

they are discussing a slow down when it comes to bond buying. we are expecting a conversation shifting to when we see timing. >> although, that could be a little while. new zealand is still struggling to get inflation above 2%. the gdp growth and inflation figures were weaker than the forecast in february. but there are signs of an awkward change soon, particularly looking at the unemployment program. that happened two years ahead of projections. of course, commodity prices surging. that is also putting pressure on the new zealand dollar, which will be something for them to consider if they are pondering scaling back asset purchases. in terms of the large-scale asset purchase program, they are willing to buy up to 100 billion in new zealand government bonds. the last was in april, 55 billion right now.

a discussion on the future, talking about talking about it, hasn't happened today. shery: we know inflation has been well below the rba's target. >> the evidence here also suggests anecdotally that it could be changing if the jobs numbers are any guide. we did have the last unemployment read of 5.6% in march. that came off the back of the end of the government's job keeper program, the wage subsidy scheme. there is a lot of evidence of labor market shortages. the queensland government has been offering up to $1500 in travel bonuses for people to come out and work in what it calls paradise. a gold mine struggling to get truck drivers and other workers. even around the corner from my place, a restaurant is still just doing take away, even though dining in has been allowed for months. they told me they can't find any wait staff.

so much for the phillips curve, strong employment equals wages growing, and therefore, inflation. there could be a lag between the anecdotal evidence and it showing up in the data. so we will just wait and see. haidi: looking to the rate decision. in melbourne, new restrictions on gatherings as authorities race to clamp down on a cluster of covid cases. australia's second-biggest city recorded the first case of coronavirus after more than three months without an occurrence. chief rebekah jones joins us now. what is the latest on how the cluster has gotten, and potential for exposure? >> good morning. you are right. victoria had -- without a single community case of covid. the cluster is nine cases.

it looks like it may grow. of particular concern, the sheer number of exposure sites. we have a major shopping center, a football match at australia's famous grounds. contact tracers are seeing if they can get a handle on exactly how far this has spread. shery: what could we expect in terms of lockdowns? >> nothing at this stage. masks are back. there has been a limit imposed on public and private gatherings to curve the spread of the virus from where it is at the moment. there is a new exposure site just this morning in a region of victoria that is of concern. in 2020, melbourne went through one of the longest and most stringent lockdowns, 112 days. it is basically how work and

living was bound. that is what we are watching closely. what has happened is the existing travel bubble between australia and new zealand. but they are optimistic it will hopefully be able to reopen soon once we work out where the cases have come from. haidi: how does the strategy of elimination -- what has it meant for businesses and how they have had to adapt? >> it is not good. each year, australians spend about $20 billion of our local currency more abroad than international tourists here. that money is being spent locally, because the borders are shut due to coronavirus. but without somebody working at the fields, the holiday towns, even at the local cafe, it is

causing a real labor shortage crunch. it could also signal more long-term, even after years, of low-wage inflation. momentum could be changing. this as well as the virus case count is what we are both watching in concert very closely here in melbourne. shery: rebekah jones with an update on what is happening when it comes to virus cases. despite the cluster, australia has defended its position in the latest covid-19 resilience rankings. third after new zealand and singapore, which is also battling a spike in cases. the u.s. is steadily climbing up the ladder, jumping for spots to 13th position. sticking with the cases, we spoke with the doctor from the johns hopkins center for health security about why the likelihood of a new surge is low. >> different times when it comes to vaccination. overall, i think the country is

looking better as a whole than many eu countries, or you have a hodgepodge of policies, vaccination rollout. the u.k. is in a much better place than much of mainland europe. and i think you will see that distinguish -- distinguish -- distinction be present when you see different policies. i think they also have different ways of thinking about the virus. i think the u.k. and the u.s. have tried to focus a lot on flattening the curve. and sort of realizing it is not a virus that will go away. some european countries have a fantastical notion of covid zero, which will not occur. >> the one common thing is to keep vaccinating people. in your head, what is the number of vaccinations for the u.s. to create momentum?

500,000, 800,000, or do we need to sustain above one million units a day? i don't look at it in terms of doses per day. i did early on, that was a function of how the vaccine rollout was reaching people. what we used a prioritization scheme. not everyone was the same priority. we gave a lot of the vaccines early on to nursing residents in order to flatten the curve. that group of the population is very heavily vaccinated. you look at people above 65, about three quarters are fully vaccinated. it removes the ability of the virus. now what we are dealing with is a mop up, trying to get the transmission out, but we are out of the position where it is a public health emergency, in terms of threatening hospitals. as much as we do as much as possible, that is great, but i think we have achieved the goal. >> you said this is no longer a

public health emergency. anything to believe it could become one in the future? >> in the u.s., it would be difficult to see the virus go out of control. the virus doesn't treat people equally. we had vaccinated aggressively in those groups of people. to me, i think we have removed the ability for the virus, we made it much more like other respiratory viruses we deal with. the more we get vaccines to people, the better it will be. but i think we can all breathe a sigh of relief, because our populations are protected. >> if the variant first found in india became dominant in the u.s., would you be able to say the same thing with confidence? >> when you look at the vaccines, especially the mrna vaccine, they seem effective. the solution, the way to make your country resilient is to get as much vaccine into people's arms as possible. i don't think they can pose that problem for the u.s. because of

the vaccination strategy. if you are a country that has not been heavily vaccinated, these areas could be disastrous. but for the most vulnerable, they will have a difficult time putting people into hospitals. they might be able to move through your community, but they will not be in the hospital. haidi: and a reminder, the johns hopkins bloomberg school of public health is supported by michael bloomberg. coming up, a bitcoin recouping some of those losses in the new year obsessions after the energy usage debate really rattled investors. we get the outlook from caroline bowler. this is bloomberg. ♪

shery: take a look at the currency markets. emerging markets currency is gaining. this is where we see downward pressure on the u.s. dollar. really getting very close to the low of the year, around 89 level that we saw earlier. take a look at the brazilian real. it was weaker in the new york session. this as we got news with

inflation really slowing less than expected. we have been watching it very closely as we continue to see the central bank of brazil battle inflation concerns. we are also seeing inflation growing less unexpected in mexico, where we saw weakness against the u.s. dollar. even though emerging markets were much stronger, we saw these currencies pulling down the index. when it comes to the turkish lira, a little bit of strength after weakening in the previous session. some reshuffling again in the central bank. that has impacted currencies in the past. so we are watching them closely. time for morning calls. still to come -- with sophie kamaruddin in hong kong. >> we are watching emerging-market currencies closely. they are seeing support for the space from the central banks commitment, very much an exit in the developed market region.

the roman be very much on the radar. relatively strong momentum with the market seeing little room for depreciation. climbing to the strongest level since june 2018. the offshore yuan briefly fell below 640, allowing them to buy dollars to slow the gains. they say the break is what is most important as an fx person. he also reckons china is the only game in town, so what they do is as key to the macro outlook as the fed. so we will be watching it. it will drive appreciation pressures. haidi: we are looking at the dollar decline. >> you could see dollar softening for about six to eight weeks before actions start to provide support. sean darby is reinstating what

should underwrite the performance, despite very mixed vaccines across the space. as for the cfs 300, it is more strongly positively correlated to the appreciating raymond b. but we are seeing dollar weakness for some time. haidi: let's get over to cryptocurrencies. bitcoin trading slightly higher. let's get the analysis with caroline bowler. great to have you with us. i keep thinking about the volatility aspect of bitcoin. institutionalists say that is why they are not ready to get in, retail investors, this is why they make a profit. where do you see it developing from here as the investment

class matures? >> thank you for having me. i think it is one that has been in bitcoin and cryptocurrency since conception. so some describe it as a feature, not a bug. i think we will see the story play out in an increasing manner as a majority of the sector evolves. and certainly not helping when we have the supply-side shock. the announcement that came out of china with additional restrictions on bitcoin and bitcoin minors. and the impact it had on the price. keep in mind, it was quite a significant shock. we should expect volatility of this nature. haidi: when you take a look at the breath of the demographic, tell us about how it has changed.

also how the nature of these transactions has changed, as well. >> i think the stereotypical price when it comes to -- has evolved and moved on. and our exchange, we have seen dominance between age of 25 and 44. we have seen the demographic shift to involve men and women, but also a stretch in the age profile. we previously saw about 5% aged over 60. in the course of the last year, that has actually doubled. 10% of a much larger user database. so we were seeing that evolve, and maturing. likewise, for last year, the increase in what we are investing. it is remarkable, because you see the longer term investing looking at this profile from a

much different vented. >> how long dear inspectors actually hold those currencies? >> everyone is moving in and out. that is really not the case. what we have found is over 50% of crypto investors in australia are looking at this in longer-term for one to three years. not necessarily buying just a flip, they are looking to hold, keep it, they see the longer-term investment opportunity. shery: do they care about the environmental concerns? >> that is not feedback we have received in any kind of volume from our client base. i think the narrative around the environment is probably just another stone to flip over. this has been known, in terms of the consensus mechanisms, the type of energy used. but where it is interesting is how the narrative has shifted from being a problem of the

producer to be a problem for the user. the day we went from petrol, we did not ask people to drive their cars less. the problem was the point of production and we made a change. and we moved to smokeless. that is where it was. but in some cases, we are looking for another stone to throw. shery: great having you on. coming up, it has been one year since the murder of george floyd. we look at what changed, next. this is bloomberg. ♪

shery: members of george floyd's family have met with president biden and house speaker nancy pelosi one year after his murder in minneapolis. after the meeting, the president called for congress to pass a police reform bill named after floyd for the senate. joining us is sarah holder. what do we know about this bill? >> we know that the bill was supposed to have passed by the

anniversary of george floyd's murder, and it has not so far. part of the issue is the qualified immunity clause, which has sparked some disagreement. in minneapolis, a number of george floyd's family spoke on stage and accessory to the appointment congress was not able to pass such a bill. haidi: we are hearing from president biden hoping for a swift deal on the legislation to overhaul u.s. law enforcement. what progress has been made when it comes to the calls to tackle systemic racism and racist behavior in the u.s. within institutions we have seen in the past 12 months? >> on the ground in minneapolis, one of the things i've heard again and again is while the community has come together, while there has been global understanding in a new way of the way racism operates in policing, there hasn't been much

tangible change on the ground in the way policing operates. in many cities, we are seeing attempts to invest in alternatives to policing, like mental health responders. we have seen bans of chokeholds, emphasis on increased training, budgetary shifts to invest in social programs instead of on staffing more police officers. haidi: as we speak, we are getting live pictures from washington, d.c. black lives matter plaza on the anniversary of george floyd's death. these are members of his family, lawyers, and supporters speaking. what is next in this battle for racial justice? whether it is on policymaking in congress, or more grassroots movements? >> i think that is the main take away from being on the ground in minneapolis.

the grassroots work is not over. people have been working to hold politicians to account, the police to account. we saw a conviction of derek chauvin, there will be more trials this summer in the floyd case. what remains to be seen is how some of these changes will be implemented in the next year. i know some politicians have been talking about the rise in crime due to covid and other issues. so we will see what happens in the next year. haidi: sarah holder on the ground in minneapolis as we commemorate the one year anniversary since the killing of george floyd. we are getting breaking news. a u.s. court has lifted all restrictions on the company. the definition -- dedication as

a communist chinese military company. this comes after xaomi and the u.s. government reached an agreement to set aside the trump era blacklisting that would have restricted american investments. it comes ahead of their earnings later today. "daybreak: asia" is coming up next. this is bloomberg. ♪

♪ haidi: welcome to daybreak asia. i'm haidi stroud-watts. sophie: i'm sophie kamaruddin. shery: i'm shery ahn. our top stories -- asian stocks poised for a weaker open after inflationary signals from soft u.s. eco-data ways on wall street. a reversal in fortunes in the

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