♪ 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 bloomberg covid resilience

rankings. asia-pacific countries are the best places to write out the virus. shall mean says the u.s. court has formally lifted all restrictions on shares as it prepares the report earnings. we take a look at what to expect as it emerges from the pandemic. haidi: let's take a look at how we are setting up this midweek session. sophie. sophie: we may see some consolidation at the msci index cap with a four-day gain. that is the best winning streak in about five weeks. we are seeing a move to the upside for nikkei futures in chicago. kiwi stocks gaining some ground ahead of the rbnz decision. looking for any tapering potentially from governors lady today. the dollar in focus. it has slipped to a january lowl , while trading at six year lows. that is why the yuan is trading at a three year high. we will watch the tolerance for that yuan strength.

while we are seeing the dollar under pressure, turning up the board on the terminal, we are seeing gold gains. it reversed the year-to-date losses with trading at more than four month highs, holding around $1900. bmo capital saying we could see it test resistance level at $1960. looking at the chart on the terminal, yields on 10 and 30 year treasuries at the two week lows. pulling up the chart right now, as you can see, benchmark rates falling below 160. this as we saw the u.s. consumer outlook soft into a three year low. new home sales in the u.s. fell by more than expected in april. going forward, when it comes to the outlook for u.s. trade, our colleague alice andrus sees a test of $153 over the next few days. shery: rising u.s. inflation undermining consumer confidence and putting a break on new home sales even though the number two

official at the federal reserve says it is only a temporary problem. kathleen hays is here with more. consumers are worried, but the fed not so much. kathleen: the fed seems confident that any of these price increases we see now are going to happen when we come out of the pandemic as things get more back to normal. there are supply bottlenecks but all of this will pass and we will go back to a situation of inflation above 2%. let's look at consumer profits. talk to anybody at the grocery store, somebody at work, how much are prices going up? i'm spending more money. it is unsettling. consumer confidence only felt a little in may. those two subcomponents -- actually, people's current conditions are getting better. expectations, this corresponds to how much we end up spending, plunging almost 10 points to 91 .1 from 107.9.

why are people getting so concerned about the future? maybe it is a signal about inflation. one year inflation expectation. it jumped up to 6.5%, one of the highest readings ever in the series. not surprising, buying plans falling because prices are going up. shery: you know when i realized the prices were going up? when toilet paper became more expensive. kimberly-clark raised prices because of those commodities prices higher. you said new home sales declining more than expected. kathleen: this is something because it is good in a way to see prices rising if you are selling your house, but if you are buying one, it is tougher. in terms of new home sales, they were down nearly 6% in april. median home prices surging 20.1%. we know there are a lot of things behind the higher prices. costs are up because of lumber prices, all of these other things. at the same time, the fed is keeping rates low. there is a lot of demand.

put it all together, home sales fell not because people were unenthusiastic, but because the prices were up so much. haidi: james gorman at morgan stanley thinks the fed will taper and hike much sooner than most officials even say. kathleen: he sees those prices rising. it is very interesting to hear the ceo of the head of a major investment firm, major banks saying this. my personal view -- he said this, not the fed -- rates are likely to rise in the early part of next year, not 2023 which is currently the projection. he sees the fed start tapering by the end of this year. he said that after many years of inflation -- no inflation, we are seeing price increases that are getting people's attention. let's look at the fact that james sense on what the fed is going to do on rates -- he is not alone. in december, that lined that you

see for 2022 does show there will be for people looking for a rate hike. by the next year, you get many more. it's interesting that there are fed officials, just a handful, already looking for that rate hike and i think it has a lot to do with the fact they feel the economy is getting better, prices are rising. they are not worried about inflation. they are finding time to start making these moves. we will see very soon if there's a little more movement in this direction by other fed officials as well. haidi: kathleen hays there. the next guest says high-growth is a headwind for stocks. the ceo for mainstay capital management. we have not spoken to you for a couple of months but your strategy has been pretty consistent since about mid february. i am wondering what tweaks you made since we've had this inflation talk, commodities

overheating starts to become the main narrative? david: well, we have continued to favor value, cyclicals, defensive. the tech trade e-commerce, the stay-at-home trade worked so well in 2020, and we had so many had fixed -- head fakes into value over the past few years, but we have really become a value investor in 2021 for the first time in many years. we are significantly overweight in value in our portfolio. you look at the last couple of weeks with bond yields easing -- look at lumber, the astronomical climb over the past year. up over 500%. had a correction of 30% over a couple of weeks. now back up about 24%. we are going to see that, but

commodities have further to run. we know we now have wages that are rising. we are going to continue to have strong demand and prices will continue to rise. we saw what the expectations are for inflation over the next year. kathleen just talked about. we are staying with the value trade and significantly overweight in our portfolio. haidi: we heard from the vice chair -- take a listen. >> my view and general fed view is that these pressures are most likely to be transitory. if we are wrong -- we could be wrong -- i think we have the tools to address inflation. haidi: my question is if we continue to see commodity prices ease, does that then kind of ease inflation pressures in a meaningful way? david: if we are just talking

about commodity prices easing, that aspect of inflation, yeah, that eases inflation. but, we still have demand continuing to be strong. we still have qe. they are not talking about tapering yet. even when they start to talk about it, we have $120 billion in qe coming to the system per month in the u.s. we have another infrastructure package, whatever it ends up being for fiscal stimulus that will come into the system. as i said, wages increasing, demand is still there. there are other components pushing inflation higher besides just what's happening in the commodity space. we think this near-term correction is just a correction. commodities have more room to run. shery: let me delve into the qe part of things because there has been broad support from the

federal reserve. this chart on the bloomberg showing how the s&p 500 has rallied with a huge growth in the fed balance sheet. in your notes, you say the u.s. is now japan. what does that mean for assets? david: well, when we say that, what really we are getting at -- it is a much longer discussion but we really think that it's going to be very difficult for the fed to raise rates and to scale back qe as it has been for japan over the last three decades. it is going to be difficult to come off the zero balance. unfortunately, our markets have become very accustomed to it. when they tried to do that, the last time, the markets reacted very quick and qt quickly went back to qe. it's just going to be difficult

for them to reverse qe and rates. shery: and the infrastructure packages. that is all great, but it seems a lot what is being discussed, the size of that package keeps getting smaller in congress. not to mention we might have more tax hikes coming from this administration. how do you factor those in? david: yeah, actually, if you look at that infrastructure package, $1.7 billion. now they are talking about a compromise of as little as $1 trillion, spread out over as many years in an economy the size of the u.s., it starts to become not quite as meaningful, and if the tax plan that biden is talking about, that is significant. it is a significant impact to gdp. the u.s. economy is ripping right now and just what is happening in the economy on its

own without that fiscal stimulus , there are inflationary forces at work. you can call it transitory but what does transitory mean? does it mean a few months, a few quarters? how long will this inflation be with us? shery: the key question. david kudla, great to have you want. founder and ceo of mainstay capital management. we discuss the global vaccine rollout and the ongoing challenges for the vaccine institute. jerome kim joins us later. next, amazon sued. the retail giant faces its first antitrust case on policies that allegedly raised prices for consumers. we will discuss that next. this is bloomberg. ♪

vonnie: this is bloomberg. the european union looking to enforce further sanctions on belarus after the forced landing of a ryanair jet with an opposition journalist on board. the bloc will close its airspace to belarus, something that u.k. did on tuesday. they will target whole sectors of the economy while calling for the immediate release of the detained journalist. president biden welcomes the response. the first meeting between president biden and vladimir putin is excited 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 stability to the u.s.-russian relationship. the kremlin says the two will discuss topics including the pandemic. u.s. secretary of state antony

blinken kicked off the middle east diplomatic mission with reconstruction efforts in gaza, while reaffirming support for israel's right to defend itself. blinken revealed the u.s. will provide $75 million in new palestinian aid this year as well as immediate disaster relief, but vowed to ensure hamas does not benefit from the funds. >> we are focused right now on responding to the urgent needs that exist in gaza on a humanitarian basis, the urgent need for rebuilding and reconstruction. and then, looking to see actions on the part of both israelis and palestinians that will take down tension. vonnie: moderna says it's covid-19 vaccine is highly effective in 12 to 17-year-olds in a large study which paves the

way for regulatory submissions around the world by early june. the company says it was between 93% and 100% effective in preventing covid. it may become the second shot authorized in the u.s. for that age group. global news 24 hours a day on air and on bloomberg quicktake powered by more than 120 countries. this is bloomberg. shery: amazon is facing fresh legal troubles. the e-commerce giant is being sued by the attorney general for washington, d.c. it accuses amazon of engaging in anticompetitive practices that has raised prices for consumers. it is the first antitrust lawsuit to target amazon in the u.s.. let's bring in matt day. what exactly is the lawsuit alleging here? matt: the lawsuit alleges that amazon used what's called -- provisions and contracts with third-party sellers that sell on amazon's website.

most of what they sell is somebody else's goods. the washington, d.c. attorney general alleges the clauses in those contracts that say you have to offer your cheapest price on amazon essentially raised prices for consumers in the end. haidi: so, when it comes to the implications of this, does it sit any kind of precedent or does it signal to other jurisdictions? matt: i think we've been waiting a long time for this. amazon, like a lot of big tech, has been under scrutiny for years for the growing market power. this is the first case through the door in the u.s. it is by far their biggest market. an indication that regulators think they have enough on the company to make a case and actually take them to court for alleged abuses. shery: in the meantime, amazon is trying to grow through an acquisition of a movie studio, mgm. what do we know? matt: we know they have been in

talks. we know they have discussed prices. the deal still might not get done but we know amazon has been throwing a lot of money and investment edits studio business, original content and they have been hiding one of the few truly independent owners of a large back catalog of film and television to bolster the offering. haidi: matt day there. coming up next, gold touching a four-month high, wiping out its 2021 losses. we will have more across the moves in the commodities. this is bloomberg. ♪

♪ shery: here's a quick check of the latest business flash headlines.

the heads of most large u.s. banks saw the pay rise during the pandemic. two thirds of ceos of banks with more than $1 billion in assets and an increase in compensation this year. among them, capital one financial boss had the biggest pay raise at 161%. however, not everyone got increased. the ceos of bank of america, wells fargo and u.s. bancorp saying -- seeing their pay decline. goldman sachs is having a joint venture with china's largest bank. goldman will take a 51% stake. the tie will boost the u.s. firm distribution network and access to wealthy customers on the mainland. icbc has 680 million personal banking clients and nearly 17,000 outlets. goldman sees investable athletic -- assets surpassing $70 trillion. u.s. chinese education stocks

rebounded after reports of a tutoring ban in beijing was denied. it called speculation about a ban on tutoring classes during summer school vacation, calling it untrue. the slide in chinese education adr's again friday after president xi jinping spoke about the need for tougher regulations on afterschool education and tutoring institutions. x on shareholders are set to vote wednesday on a bid for investors seeking a commitment from the company on climate change. an activist investor group led by a hedge fund named engine number one is looking to replace all of the oil giant's board members with those more open to clean energy. blackrock has backed three of the candidates. haidi: turning to commodities. oil is holding near $66. no real change in asian trading. investors weighing concerns about the recovery trends and demand.

su keenan joins us now. where are we now when it comes to these talks between world powers and iran? su: right now, we are seeing the world powers starting their fifth round of talks which have been going in vienna. this will be on reviving a landmark agreement as it reinstates caps on iran's nuclear program in exchange for iran's return to the global market -- oil market and global economy. sanctions have prevented them from doing so. this would put more oil on the market. we have seen very choppy trading as a lot of oil veterans try to gauge when iran might presume -- resume oil exports. iran's president backing from his chinese counterpart on monday. so far, those talks have been progressing. a lot of oil investors have to balance that against supply data which will be out on wednesday

and it shows a decline if demand picks up. the oil boom continues to be optimistic on the proposal for a continuing recovery. and the summer season kicking off next week. shery: what about copper? we have seen a lot of volatility there too. su: copper gave early gains. as we dive into the bloomberg, you can see the dollar has been showing -- it has been nearing a six year low but there are some factors that could now bring the dollar back. the disappointing u.s. home data that was one of the factors that saw gyrations in the dollar. it really put pressure on copper and copper's record rally has stumbled in the past two weeks on a couple of factors. concerns inflation can do rail the economic recovery and china stepping up efforts to curb

soaring commodity prices. the rebound in the dollar tuesday is bad news for copper. completely different story for gold because after slumping to the first quarter, gold has been on a tear of late. it has been up eight of the last nine sessions. it has erased its losses for 2021. the fact that signs of inflationary pressure goats concerns has been good for concern -- for gold. there's a lot of view that, again, the gold rally will continue and so, a lot of eyes on the red hot commodity rally is changing course a bit now. stay tuned. shery: su keenan with the latest on all of those commodities. let's turn to a commodity that is sometimes called the digital gold. it is bitcoin. we have seen it now recouping more than half of those losses

we saw in the new york session. it was pulled back from the double-digit percentage rally on monday with a 16% jump then. we are seeing wider gains across the bloomberg crypto index as well. this after seeing pressure in the previous session. ethereum dropped but also rebounding 6%. another tweet by elon musk over his influence. cryptocurrencies all week long, not to mention china's regulatory rhetoric has not helped them put pressure on the sector as well. we will be watching how those cryptocurrencies trade during the asian trading session. coming up, we discussed the challenges and progress of the global vaccine rollout just as white house officials say 60% of american adults have been fully inoculated. jerome kim of the international vaccine institute joins us next. this is bloomberg. ♪

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vonnie: this is daybreak: asia. hong kong's weekly covid infection rate has fallen further. new cases dipped to eight from 17 a week earlier. 2.1 million doses have been administered with 12% fully vaccinated. the government says it may donate vaccines to countries more need. local demand has ebbed. the unused doses will expire in august.

australia has extended a measure ensuring -- the deadline was extended from june until the end of the year. the guidance insurers foreign firms will not create a permanent establishment in australia just because their employees are temporarily located there due to covid lockdowns. a powerful cyclone is set to slam into india wednesday, the second in less than two weeks. officials are evacuating more than one million people as forecasters predict it will dump heavy rain and bring winds as high as 185 kilometers per hour to some eastern regions. last week's storm left dozens dead. president biden has called on congress to pass the justice and policing act after meeting members of george floyd's family at the white house one year after his murder. the floyd family also met with

the vice president and house speaker. his brother said after the meeting he is thankful whatever's going on -- he is thankful for what is going on. >> if you can make federal laws to protect the bird, the bald eagle, you can make federal laws to protect people of color. vonnie: global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: breaking news. we are hearing a province in china plans to raise penalties for crypto mining. this is a continuation of the mining crack down we have seen in china. already inner mongolia has banned cryptocurrency mining. china of course takes about 65% of global bitcoin mining and really the environmental concerns have become an issue.

the chinese campaign to clamp down started years ago. in 2017 they abolished initial coin offerings as well. now we are hearing a province in china plans to raise penalties for crypto mining. this of course as we heard before that china's inner mongolia banned cryptocurrency mining and will shut all projects by april. now we're getting confirmation that inner mongolia will be the province planning to raise penalties for crypto mining. they account for about 8% of global bitcoin mining computing power. the pboc has also recently reiterated the digital token cannot be used as a form of payment, coming at a time when china is issuing its own digital yuan. shery: we are of course headed to the chinese open but also japan and south korea. let's turn to sophie for what to

watch. sophie: watching crypto-related stocks closely. watching tech shares as well as earnings do letter this wednesday. see nikkei futures under pressure after a four-day gain. the yen trading in a tight range, but seeing some upside momentum given the trajectory for u.s. yields. treasury features a steady. u.s. 10 year yield falling below the 160 handle. check out the dollar trading near the year's lows. sell the greenback on the back of a dovish taper which would signal a later path for policy lift off. this as we are seeing the offshore yen study after breaching the 640 handle overnight to hit a 35 month high and a path forward for the yen looks to be on firmer footing. looking to the pboc later today. pulling up a chart, tuesday's

was the weakest in two weeks time. whether or not appreciation for the yen will be on the card. switching out the chart on the terminal as the yen climbed, we have seen e.m. currencies rise in tandem here. with that, you have the likes of credit saying you could see depreciation pressures continue for asian currencies if the renminbi continues. you have jeffrey's saying it bodes well for the csi 300. haidi: the entire world has been battling the same virus for over a year but the quality of life and control of the pathogen spread took vastly different terms -- terms depending on where you live. this is what the ranking looks at. there has been a shakeup. last month's number one singapore, falling among other

asian countries. tell us about the most notable changes in the rankings. >> this month's story is really about reversal of fortune. where we are seeing asian economies lauded for the containment of the virus were almost a year, now they are falling significantly in the rankings. singapore fro from number one, taiwan and japan fell from the top 10. all seven of the biggest declines down the ranking our asian economies. on the other hand we are seeing the u.s., part of europe, steadily climbing up the ranking because of their vaccination efforts and reopening progress. so this is a trend we are going to continue to observe into june. shery: we had seen asian stars when it came to containment measures but they are falling behind. jinshan: exactly. they all have this covid zero mentality. they want to keep cases to as near zero as possible and that

is becoming very troublesome at this age. if you have to meet every flareup with a very strong reaction, it means you cannot join the globe in terms of reopening your economy. and that is very important for places like hong kong and singapore because they rely on global trade and tourism. haidi: as we are looking -- great to hav eyou on. with the resiliency rankings on coronavirus. this coming at a time when the white house says 58% of adults are now fully vaccinated in 25 states and washington, d.c. let's bring in jerome kim, director general at a seoul -based nonprofit organization. thank you for joining us today. we've heard the cured immunity -- the herd immunity concept disputed by many scientists

given how widely spread the disease has come. yet here in the u.s. with so many vaccinated with very effective vaccines, could that be a possibility? could we achieve some kind of herd immunity? jerome: i think it is important to recognize that herd immunity is not a number. as we increase vaccination and as the u.s., for instance, is more successful at getting even more than 50% of people fully vaccinated all over the country, infection rates will decrease. but i think that the more important thing is that this increase in vaccination rates will decrease the number of severe cases requiring hospitalization, and decrease the number of deaths. it will through the size of outbreaks because the presence of vaccinated people in a crowd has a slowing down effect on the spread of the virus. and then ultimately, the idea would be that with this response, economies will be able to open up. so herd immunity is an important

idea, but the most important thing is for countries to vaccinate as many people as possible, as quickly as possible. shery: but how can you open up your borders and other countries have been so far lagging when it comes to vaccinations? what will it take to get them to catch up? jerome: that is a great point. when you look at the 1.6 billion doses of vaccine that have gone out worldwide, the lowest income countries in the world have used less than 1% of that vaccine. if you include the lower middle and lower income countries, it's 15%. so there's a huge global gap in the vaccination and this has huge consequences. 3.5 million people have died from covid and if we do not do better at sharing these vaccines, global covid deaths will double. the economic consequences are such that if the high income countries vaccinate their own people exclusively, three

different sources estimate that high income economies, so like the u.s., will suffer $4 trillion in additional losses because equity cannot be insured. the final crisis is a biological one. new variants are being generated. it would be a horrible thing for a new variant to undermine $20 billion worth of work, developing 10 safe and effective vaccines. so we need to be able to address the global covid outbreak more equitably. haidi: when it comes to places like australia, the vaccine rollout has been very slow. but other people say we don't have much of the virus here. a cluster of nine is considered to be a really serious outbreak. can certain countries that have gone for the elimination strategy afford to take longer to roll out the vaccine? jerome: that is a great question. and i think it gets to how much longer can we put up to this.

south korea was lauded early on for its ability to bring infections under control. after 1.5 years i think people are getting tired and complacent. and i think you are seeing the effect of complacency in some asian countries that have targeted zero infections. so at some point we are going to need to vaccinate people so that people can gather now without the same level of concern about the potential for spread of the virus. and that another city in australia will not need to be locked down because of a couple cases appearing. those will be important steps forward as australia readjusts itself to life after the pandemic. haidi: you talk about complacency and allude to fatigue. what does that mean ongoing? because i want to know whether you see this developing into a measles-type situation, or a seasonal flu-type situation. jerome: if you asked me a year ago i would have said, well,

since we know that distancing unmasks and avoiding crowds works, all we have to do is wait for the vaccine and we will be able to get it out. but there have been a number of waves of the pandemic in countries all over the world, and these pandemics are generating former mutants than i would have guessed would've been possible. so we are hopefully, with the current set of vaccines, if we can vaccinate people fast enough, we can control the outbreaks and generate a certain level of protection which will keep people out of hospitals. however, there are probably mutants out there we are not aware of. new mutants will continue to be generated as these large outbreaks in india, or south america, or unknown outbreaks. if we are not tracking them and we do not know how well the vaccines work, we could be in for a very unpleasant surprise. the one thing to remind ourselves of continuously is we

have always been, unfortunately, surprised by what the virus can do. and rapid vaccination with the current vaccines appears to be effective. now, not efficacious necessarily, but effective in controlling hospitalization and maybe spread. we need to get people vaccinated quickly. shery: will waiting -- jerome: to start, ivi really does believe we do not pad the vaccine. we have not patented the vaccine so it can be transferred all over the world. that said, what we really need now is a supply of sophie -- is a supply of safe and efficacious vaccine. waiving patent rights right now will not do that. we need to get as much vaccine made by high-quality producers as possible. and in regulatory environments considered strict.

let the u.s. fda -- where they can watch and verify the companies are doing a good job. this is to alleviate the short to midterm supply question. in the longer term would it be important for us to begin a discussion and get consensus and overrun -- and alignment around a scheme for being able to share not only intellectual property, a patent, the know-how around manufacturing a vaccine. so when he vaccine is transferred, the pfizer biontech vaccine is said to have 15,000 steps. if you don't have the book on how to do that, it will take you years to develop a similar process. so you have to remember there is a short-term and long-term. short-term is to get as much vaccine as quickly as possible into arms. shery: where would south korea

fit into that vaccine supply chain story? jerome: that is a very interesting question given the developments last week. south korea is a vaccine manufacturer. south korean companies also manufacture, or are big manufacturers of biologics. so they have usfda and ema ignite high-quality products. -- recognized high-quality products. the korean government has made several hundred million dollars worth of investments building up vaccine manufacturing and research and development. so having the ability to do something and do it rapidly and at high quality with a good regulatory regime in place i think will be really critical. over the short to midterm career could be very important. over the long-term hopefully this growth in r&d and korean vaccine hub could be another potential source of economic growth for the country. haidi: you have spent much of

your career studying hiv treatment. i'm just wondering, does the covid vaccine experience make you more optimistic of how we could find vaccines for other illnesses in the future? is it the science, the funding, or the political impetus that prevented us from being able to accelerate drug development the way we have seen over the past 12 months? jerome: all of the above. it's really -- i am not being glib, but governments recognize the u.s. government and the coalition of government -- they recognized early on what they needed was to follow a model that would get into a vaccine as quickly as possible. to de-risk the research and develop and for companies to accelerate timelines. that's essentially what they did with $20 billion worth of funding. they were able to tell the vaccine companies, we want this vaccine and we will purchase 100 million doses at the end of the

day. for a company, that actually provides an impetus to move things along quickly. the other part of this is when you really think about who really helped the west develop these vaccines, it is the biotechs. biontech partnered with pfizer, and it was biontech's technology. moderna did not have a vaccine approved. astrazeneca was not making vaccines, they partnered with oxford. johnson & johnson had an ebola vaccine which did not have much of a market, but was very rapidly moved into this space with new technology. so, really, it's important to recognize that if these small companies were really engines of innovation, and partnered with the right manufacturers, could get vaccines out and really help us in the long run. haidi: dr. jerome kim, really great to have you with us. coming up next, the u.s. sees

trading curves ahead of its first-quarter earnings due out later today. we take a look at what to expect from the chinese phone maker. this is bloomberg. ♪ nese phone maker. this is bloomberg. ♪

haidi: the u.s. court formally lifted always sections on xiaomi

. this comes ahead of its earnings report later wednesday. stephen engle joins us now from hong kong. that part was expected of course. what else are we looking ahead to? stephen: xiaomi has been doing very well but they have had a lot of headwinds. number one on that list has been the u.s. defense department blacklist that named xiaomi a chinese, a communist chinese military company, and that would force the delisting from u.s. adr's, also preventing americans -- excuse me, the shares from being included in global indices. and therefore restricting american access to xiaomi. that's now been lifted, according to xiaomi putting out a statement saying they got word from a u.s. district court that the court formally lifted all restrictions on u.s. persons ability to purchase or hold xiaomi securities. that has another tie to another,

of course, headwind, if you will, and that was the ftse russell index among others were moving xiaomi from their global indices. yesterday the ftse russell says they plan to re-add xiaomi and others to certain indices subject to the u.s. court action. now we are here in the u.s. court has acted, so therefore they should be included again perhaps in the all world index and in china 50 index. so, you know, that is good news. those headwinds have been removed. but the chip shortages, that is another huge, huge headwind for xiaomi and any smart phone maker, and their biggest international market is india, they control about 27% of the indian smartphone market, they are number one. and they have a big covid outbreak, a cyclone. so there are some literal headwinds. shery: would all those risks have affected their earnings earlier this year?

because we are getting those results. stephen: yeah, but shipments are great. gross margins were at a record in 2020. bloomberg intelligence says that could keep expanding because you have 5g take up in china and europe, and in india going up great guns. that should help xiaomi, according to bloomberg intelligence, meet its 30% revenue growth target for this year. domestic sharp phone -- smartphone shipments rose -- 5g is being taken up by china as the chinese economy is picking up steam coming out of the pandemic. late june the ceo of xiaomi said last week that xiaomi will build a new factory with capacity of about 10 million high-end smartphones to be completed by the end of 2023. they are ramping up for continued smartphone and 5g demand.

again, everyone has demand, and that's putting a huge shortage on chips made for smartphones and any electronics, cars, home appliances and the like. xiaomi basically makes all these home appliances, smartphones, and wearable gadgets that need chips. shery: stephen engle. we will have more analysis on xiaomi with the learner group later on. be sure to tune in to bloomberg radio to get in-depth analysis from a daybreak team, broadcasting live from our studios in hong kong. listen via the app, or bloombergradio.com. plenty more ahead. ♪

haidi: amazon has been sued by the attorney general of washington, d.c. over allegations of anti-competitive pricing. he says amazon's policies prohibit third parties from offering products at lower prices on rival platforms which has led to unofficially high prices and allow the e-commerce giant to create monopoly power. amazon says the ag has it backwards and the outcome he seeks would lead to posting even higher prices. activist hedge fund bluebell capital is pushing to pay about

$4 billion to shareholders. they say the current plan to distribute 60% of shares to vivendi stockholders is not in the best interest of minority shareholders. bluebell also wants the listing to take -- neither apple nor epic will likely be pleased if the judge handling their case sticks to the concerns she voiced at the end of the trial. the judge says she is skeptical of the app store allowing for any real competition, while also questioning epic's motive for suing apple. the judge said she will make a decision as soon as possible, with options ranging from leaving the app store undisturbed to a complete overhaul. shery: coming up, jonathan garner. market opens in sydney, seoul and tokyo next. this is bloomberg. ♪ ♪

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shery: hello and welcome to "daybreak asia." haidi: looking at the major markets opening in asia, our top stories this hour, asian stocks look to soft u.s. economic data on wall street. a change at the top and the covid resilience rankings.

asian countries lose their perch. xiaomi says the u.s. court has formerly lifted all receptions. we take a look at what to expect as it emerges from the pandemic. let's get straight to the start of trading here in asia. sophie: in japan, local media reporting they may seek an extension. kicking off cash trade we are seeing stocks move to the downside for the nikkei and the topix. this after the benchmark cap a four-day gain. keeping a close eye on sony. shares gain some ground amid local media reporting it's eyeing for a chip venture. switching out the board, a read on manufacturer confidence which is worsened for june, the first on month drop since january on the chip shortage. some carmakers a factory lines. outside moves for the --

korean won holding steady. flipping the board we are seeing bonds climb for a sixth straight day while the aussie kiwi is trading near a one-month low ahead of the rbnz. don't allow the possibility of knee-jerk reactions if the central bank resumes. we are seeing kiwi stocks gain ground at the start of the open in sydney. heading lower by about .1%. checking in on currencies, offshore u.n. -- hitting a 35 month high tuesday as options traders are adding to bullish positions. the onshore rate jumps to the strongest level since june 2018 against the greenback trading at around the year's lows. gold has erased year to date

losses. around 1900 level following data out of the u.s. treasuries higher on tuesday and ahead of a five year option we are seeing cash yield continued to come under pressure after the 10 year rate fell below 160. treasuries a softer this morning. pulling up the terminal right now, we have our colleague say we could see a test of the 153 level on the u.s. 10 year yield in the coming days. this is a level that has been tested many times since mid-march. she says a breach of this could be like crossing alana in the sand -- crossing a line in the sand. shery: let's talk about rising u.s. inflation, because it is undermining consumer confidence and putting a break on new home sales, even as the number two official at the federal reserve says it is only a temporary problem.

kathleen hays is here with us. consumers seem to be pretty worried about the federal reserve still says not just yet. kathleen: they are watching it very closely. they have a forecast, they figure we have this pandemic, economies went down a hole, it came back up. they know there are supply bottlenecks, they know all these things will happening, but they think it will be temporary once we get through this unprecedented time. but for consumers it is unsettling. let's look at consumer confidence, the measure from the conference board, goes back decades. it just edged lower. current conditions actually rose but expectations, that is a very important number, nearly 10 points down from about 108. this is the signal for how people will buy. if they lose their confidence in the future, they pull back on spending. and along with this, maybe one thing that is so unsettling,

they are seeing inflation and it think it will really jump this year. you ask them what will be one year out on the cpi, 6.5%. it's one of the highest readings in the series. not surprising. in six months many people say they won't be buying homes or ca rs. shery: given the hot property market even in new york, they are calling it insanity. no wonder new home sales declining more than expected. kathleen: they were down nearly 6% in april. the median home price up 20.1%, the biggest monthly increase since 1988. so this is really something. of course we have a couple things going on. the fed is keeping bond yields low so mortgages low. that makes attempt into buy. construction costs are up. demand has been up. now that prices are going up so much, that is one the big reasons why people are starting to sit back and hope for a

little respite. haidi: morgan stanley's number one thinks the fed will taper and hike sooner than what we have heard from us fed officials. kathleen: in fairness to fed officials, they are worried, their watching, but they have a very strong, well-thought-out logic as to why they can make their bet that it will not be permanent. jim gorman no saying this, speaking today. my personal view is rates are likely to arise -- to rise in the early part of next year and not in 2023, which is currently what is projected. he also thinks the fed will start its taper by the end of this year. he says it is because people are now, after seeing no inflation, clearly seeing price increases, and that is what he is looking at. if we go to our chart for a minute, you can see there are four other members of the fomc.

the second line in from the left. looking for that first rate hike sometime in 2022. gorman is not alone on that either. when we get to the june meeting it will be interesting to see if other fed officials are tilting more, starting to talk about taper, moving in that direction, and moving up their forecast for that first hike. haidi: global economics and policy editor kathleen hays. the entire world has been battling the same virus for over a year, but the quality of life and the spread of the virus are pretty different depending on where you have been living. this is what the bloomberg covid resilience ranking takes a look at. joining us to discuss is jinshan hong. what are we seeing in terms of most notable changes? jinshan: this month is really a story about reversal of fortunes. lauded for their covid containment for year, these asian economies are sliding in the ranking. singapore from from number one,

taiwan and japan fell out of the top 10, and seven of the biggest declines in the ranking are asia-pacific economies. on the other hand we are seeing the u.s. and u.k. and parts of europe climbing steadily because their vaccines are taking effect. so this widening gap is what we are going to continue to watch into june. shery: we had those asian stars during the pandemic, but they seem to be falling behind now. jinshan: yes. this is the topic of covid zero strategy we have been discussing. it could be very successful for them last year when the pandemic started, but right now with vaccinations starting to bring countries back to reopening and back to global travel, these countries in asia that are really obsessed with the idea of zero covid locally, are stepping up their measures whenever there is a small flareup, and they

have very strong border controls. this is risking them for joining the world when we go forward. haidi: our bloomberg reporter as we continue to track the changes and changing fortunes here in asia. one of the things that we are also looking at is what is happening with vaccination rates. we're hearing hong kong's vaccination rate, the take-up is so low, that dosages may have to be either thrown away or hopefully donated. jinshan: yes, the hong kong government is saying they will continue to donate our vaccines. they are close to the expiration date, which means over 800,000 doses now in hong kong that are biontech shots are not used yet, and they are expiring near mi d-august. what the government is doing right now is giving another tick to the population to get the vaccine now or else they will not have more supply this year,

which is likely. right now less than 1/5 of the population has taken the first dose, so it's a very low rate compared to singapore where about one third of the population has received their first dose. shery: jinshan hong there with the latest. take a look at what sony is doing right now, gaining ground for the second session, at the highest level since april 30 of this year. this coming at a time as we continue to hear from that strategy update, sony now saying they will invest two trillion yen over three years for strategic investment. they will continue to focus on ip, tech and buybacks. this as we heard from japanese media, saying japan is eyeing a sony/tsmc venture for creating a chip factory. and we're continuing to watch sony as it is gaining ground for

a second session. bloomberg subscribers can continue watching at live go for that sony strategy conference ongoing right now. you'll also find big dire entries coming up today. also let of this week as well as some events you may have missed earlier. for now, let's get to vonnie quinn with the first word headlines. vonnie: the european union moved to impose further sanctions on belarus after its forced lending of a liner jet over the weekend and arresting a journalist on board. they will close airspace to belarus, something the u.k. did tuesday. the eu also plans to suck their -- plans to target whole sectors of their economy. president biden welcomes 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 to their relationship. the kremlin says they will discuss issues that include cooperation on the fight against the pandemic. u.s. secretary of state antony blinken kicked off a middle east diplomatic mission with a pledge to aid reconstruction efforts in gaza, while reaffirming support for israel's right to defend itself. after meeting palestinian authorities, blinken revealed the u.s. will provide 75 million dollars in new palestinian aid this year, as well as immediate disaster relief. he vowed to make sure hamas does not benefit. >> we are focused right now on responding to the urgent needs that exist in gaza. the urgent needs for rebuilding and reconstruction. and then, looking to see actions on the part of both israelis and palestinians that will take down

tension. vonnie: moderna says it's covid-19 vaccine was highly effective in 12 to 17-year-olds in a recent study, paving the way for regulatory submissions around the world by early june. the company says it's shot was between 93% and 100% effective. that puts them on track to possibly become the second shot authorized in the u.s. for that age group. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, earnings expected later today. we will get a preview with vanessa martinez. coming up next, talking outlook for asian markets with jonathan garner. this is bloomberg. ♪ ♪

shery: asian equities have significantly underperformed their global peers amid a resurgence in the viorst. that has given -- resurgence of the virus. morgan stanley sees risks looming. joining us as chief asia e.m. strategist jonathan garner. always great having you with us. seasonality does not seem to be helping the region. what markets are you less bullish about? jonathan: it's really a question of style. i will come back to markets in a minute. but once we broadly prefer cyclicals to growth, we think as we are entering a more difficult midcycle environment for the global economy more generally,

one should be operating quality. so that's superior balance and strong profitability. now, on which markets are we more cautious on, in general we are cautious on markets, or we h ave a high growth stock representation. so we did downgrade offshore china and particularly the china internet sector in january. and we continue to be cautious there. more recently in this midyear outlook we also downgraded taiwan, which is a more hardware-oriented market. but taiwan is trading at a record valuation premium to overall emerging markets, roughly a 50% premium on price-to-book. we think this midcycle environment, particularly as we round-trip, the strength in tech spending going on late last year, and maybe reconcile what we think is some double and triple ordering that is going on in the supply chain in tech, we

think that valuation premium will erode for taiwan. so those are two that we are quite cautious on, china and taiwan. shery: so you have samsung and south korea, they seem to also be heavy when it comes to the tech sector. is that also a concern? jonathan: we're neutral on korea. our overweights are concentrated in the more value part of the market. so that's australia and singapore. where financials and materials are very heavily weighted. the korean equity market, though it is somewhat expensive to its own history, it is not out of line with the historical relationship to the rest of e.m. both korea and taiwan have had a very strong retail investor bid for equities. in korea that has already started to normalize a somewhat. trading volumes has started to come down, but that process is not really started yet in taiwan. that is a global theme, it's

part of the reason why we got so cautious on growth stocks because the retail investors got those to unsustainable levels, particularly chinese internet. haidi: i want to talk about china because we saw the csi 300 see it's best day since july last year. we are seeing the breakout regardless of which sector group you're looking at. are you still remaining cautious? do you really think that the regulatory overhang has peaked? jonathan: for onshore china, a-shares, we have been more bullish than offshore china, so the china adr's or dual listed stocks, and the h-share index has a much lower weight than growth and tech than the offshore indices. considerably lower. that is a source of advantage for the h-share market. that said, for china equities

overall, the the bigger theme is we are in a tightening cycle. six months ago i think investors did not really understand that, the fact that not just in relation to credit growth, but also regulation tightening, there was a tightening move afoot. now i think even if you look at bond yields in china, they have started to decline. recently they have met lows for the year. the debate is now moving onto whether china may in fact be over-tightening policy, 15 or 16 months after the big easing we saw in february, march of last year. haidi: what does that mean seeing we have seen consumer names over perform recently? let overshoot, -- if the overshoot happens, does that have a role on affect to the strength and willingness of the consumer recovery? jonathan: if you look at valuations for a-shares, which

we prefer to offshore china, they are around 14.5 forward pe, and that's not particularly demanding. but certainly there are parts of the consumer space in china that are expensive to history and global peers. other than continuing with this overweight anglo -- on growth internet, we're caution. what do we prefer? it's financials. it is been a long time since we thought financials would outperform in asia. also materials. and parts of capital goods and industrials. shery: given what you are saying about financials, your preference for value and cyclicals, i would have thought you would like japan but it seems like you're less bullish now. jonathan: if you go back six months ago we had a preference to developed markets overall, including japan.

versus emerging markets. that was 180 degrees different from where the consensus was, which expected emerging markets to lead a global cyclical rally. that thesis went wrong because of the chinese tightening. went wrong for the consensus. and also this derating we have had for the growth tech part of the e.m. index. to answer your question about japan, japan has performed less well than europe and u.s. europe is the key region that is outperforming. as you were mentioning, one of the reasons for that and why we are now more neutral, japan versus emerging markets, is that japan in terms of covid vaccination has lagged other developed markets. and indeed we have cut our japan gdp growth forecast for this year, so japan will probably grow a little over 2% in real gdp, europe about 4.5%, the u.s.

will be north of 7%, and that's enormous divergence. haidi: jonathan garner there. always great to have you with us. you can get a roundup of the stories you need to know to get your day going. bloomberg's of scrubbers go to your terminals. it is also right on your mobile. you can always tweak your settings to get the news that matters most to you. this is bloomberg. ♪ is bloomberg. ♪

shery: here's a quick check of the latest headlines. amazon has been sued by the attorney general of washington, d.c. over allegations of anti-competitive pricing. they say amazon's policies prohibit third-party sellers from offering --

amazon says the ag has it backwards, and the outcome he seeks would lead to a posting higher prices. goldman sachs forming a joint venture with china's largest bank. goldman will take a 51% stake. it will boost the network to wealthy customers on the network. icbc has around 680 million personal banking clients and 17,000 outlets. goldman sees investable assets in china surpassing $70 trillion by 2030. the heads of most large u.s. banks saw their pay rise during the pandemic. two thirds of ceo's of banks with more than $1 billion in assets had an increase in compensation this year. among them, capital one's financial boss had the biggest raise at 151%. but now everyone got an

increase, with the ceo's of bank of america, wells fargo, and u.s. bank seeing theirs decline. investors seeking a commitment on climate change. an activist group is pushing for four oil giant board members to be open to clean energy. blackrock has backed three of the candidates being put forward. next, the u.s. lifts trading curves on xiaomi ahead of its first-quarter earnings due out later. we will tell you what to expect from the chinese phone maker. this is bloomberg. ♪ berg. ♪

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♪ vonnie: this is daybreak: asia. hong kong's covid infection rate has fallen further. so far, more than 2.1 million vaccine doses have been administered in the city. 12% fully vaccinated. the government says it may donate vaccines to countries more in need. local demand for pfizer shots has ebbed. 840,000 unused doses in storage will expire in august.

australia has extended the relief measure ensuring about workers won't text-only create a threshold for invoking corporate tax. the deadline was extended from june until the end of the year. the guidance ensures firms won't create a permanent establishment in australia which would trigger a corporate tax just because employees are temporarily located there due to covid lockdowns. a powerful cyclone is set to slam into india on wednesday, the second in less than two weeks. officials are effectuating more than one million people as forecasters predict the cyclone will dump heavy rains and bring wind as high as 185 kilometers per hour to some eastern regions. president joe biden has called on congress to pass the justice in policing act after meeting members of george floyd's family at the white house one year after his murder. the floyd family also met with

the vice president and house speaker. floyd's brother said he's thankful for what's going on. derek chauvin was convicted of the murder and will be sentenced next month. >> if you can make federal laws to protect the bird which is the bald eagle, you can make federal laws to protect people of color. vonnie: global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. i'm vonnie quinn. shery: results out later. u.s. court limiting -- lifting all restrictions on the smartphone maker. vanessa martinez. she joins us live from chicago. great to have you with us. how much does the resolution of

that create a better path forward for the stock price? vanessa: i think it's a good moment to have it removed from the blacklist. at the same time, it's coming at a point where global rotation from growth stocks moving into value stocks -- i think there's multiple ways that we can benefit from a china scrub. it might not necessarily be today and buying chamois. haidi: what are you looking ahead to in terms of the set of earnings? what would be something that jumps out to you? vanessa: the main focus would be profit margins. the expectations is that it will exceed.

beside its own revenues, the profit margin is most interesting based on if you look at financials five years ago for xiaomi, the revenue on smartphones was 80%. the revenue coming from internet services was 5%. if you look at the close of 2020, we can see that the revenue move from smartphones to 62% and internet services moved up 10%. i think that was a good move for xiaomi, specifically because the profit margins from services compared to smartphones is substantially larger. the overall profit is 40% coming from just services. shery: how long will it take for you guys to add xiaomi to your buy list? vanessa: i think the volatility piece is important. it is heavy volatility because of the back-and-forth on the

administer insurance -- administrations. a few hours ago, they finally confirmed that it has been removed from the blacklist. right now, i think the expectation is to the inflationary environment that we are economically value stocks are most important. and benefiting from china per se , i think stocks like bhp and qualcomm, where 50% of their revenue comes from china. i feel there's other opportunities to be looked at right now. shery: we are expecting shipment growth for xiaomi, whether inside china or europe. we are seeing a huge recovery. how much will this help their business? vanessa: i think it will help their business. mainly, i think the shift in

services, focusing on that service model which they have in the past five years. i know that the ceo has come out and stated that they want to get into electronic vehicles. i think that's an advantage for them as well. the earnings will exceed. i think it needs a little more progress to actually become a bike today. haidi: great having you on. shery: coming up, overseas investors are helping drive a surgeon chinese stock prices. backward buying of onshore equities. more on that just ahead. this is bloomberg. ♪

♪ shery: we are headed toward the china open. let's turn to sophie for what to watch. sophie: asian stocks are mixed despite gains being led by the kospi. electric jumping the most as it is one of five companies to be added to the kospi 200 as of june 11. japanese stocks are fluctuating after a four day game. sony shares are swinging as the markets digest its investment plan. we are seeing the kiwi stocks with little change this morning.

the drop in u.s. fuel is taking a breather with the 10 year falling to a two-week low. gold training around 1900. bullion has a raised losses with u.s. data giving transitory inflation theme. wanda, ed moya saying inflation looking ready to throw in the towel. lower yields have weighed on the greenback. the yuan has been on the front foot. 30 month high on tuesday amid record buying of chinese a-shares. a look at currency derivatives. a look at the appetite we are seeing for the mmb. traders betting on more appreciation for the currency. weakness ahead for the dollar with momentum picking up. tuesday marked a big pickup and options activity.

-- in options activity. haidi: we will stay with china. beijing's battle to maintain stability and financial markets took a shift on the biggest surgeon stocks since july. every sector gained on the day led by consumer stable names. our chief china markets reporter is here. why did we see that big jump in the csi 300? why are we seeing the yuan at a three-year high? >> good morning. it was quite a sudden move, the biggest gain since july. in july, it was a time when beijing was encouraging stockings. a lot of theories around that. there could be windowdressing from mutual funds as we near the end of the month. a pretty miserable two months. they might be making up for that lack of performance with record net buying from foreign --

offshore based funds. $3.4 billion through the stock connect in hong kong. that could be seen as a sign of intervention. chinese funds based in hong kong buying. what we are hearing was that it was actually real slow -- flows pushing the offshore yuan past 6.4. also a key level. that momentum picks up. we saw a lot of technicals adding more green to the rally. the csi 300 punching past the 100 day moving average. it has been an important's resistance level for the past few months. shery: does that mean that this bullish move will continue? sofia: what's interesting is, what does this mean in the context of what's happening to chinese financial markets? we are seeing a clampdown on commodity prices, that's the next level that beijing is targeting.

is that money being shifted to the stock market? if so, is that a good thing for beijing? we have the 100 year anniversary of the coming's party in july. the government wants to have a strong market, not overheated, relatively strong currencies. it could be that a bubble or frenzy in stock prices is the lesser of two evils. at least it doesn't impact inflation. it has not passed through to the consumer like commodities. that might be a better strategy today for it some of that flow, some of that optimism and momentum to stocks. shery: a preview of the chinese markets. they open in just about half an hour. son of china's local state owned enterprises are struggling to sell bonds. investors confidence has been hurt by the apparent lack of central government support as authority signals a poorly run as always and local government finance vehicles will be

automatically billed out. let's get more from bloomberg's china credit team. rebecca, which firms have been most affected? rebecca: debt sales from state owned enterprises in particular really tumbling. we saw bonds, local soe's under an anonymous amount of pressure. these kind of farms from these leverage provinces were already wage down when we saw state linked funds at the end of last year. however, we this year have seen a lot of local governments trying to step in and try to make positive comments and supportive measures that there so ease be supportive. we have seen that struggle to come to market.

that can prompt a vicious cycle. much of beijing wants to allow summit -- some of these firms to sale -- fail. it becomes inevitable that you see this wave of failures. you potentially risk prompting contagion. haidi: the recent turmoil we've seen has really created more scrutiny when it comes to the procedural ways that global investors can get access to some of these distressed assets. we are now seeing a pilot program with hong kong that might improve that access. rebecca: absolutely yes. it's a really important development in terms of offshore creditors based in hong kong or overseas global creditors that hold dollar debt. essentially, courts in shanghai are going to be able to recognize insolvency proceedings in hong kong and vice versa.

what that means essentially is global investors will be given a door into mainland china and be able to potentially put forward their claim. ultimately, this should really help the prospects of a creditor getting their money back when they run into trouble. the broader thing to remember here is, the ability of offshore investors to retrieve their money and protect their assets. it's one thing that has been raised. the fundamental question is the nature of offshore investment and whether they are more vulnerable than peers. shery: how much have they reneged on bond payments so far? rebecca: it's quite a significant chunk. what we've seen is that they are continuing to drive overall defaults across the 100 billion

you want market. what we are watching i suppose is whether or not we see real estate firms actually take over. the move to curb deleveraging in that sector has prompted a sharp rise in the number of real estate firms that are defaulting . a fresh default came through just yesterday. haidi: be sure to tune into bloomberg's radio to hear more from the days big newsmakers, get analysis from the daybreak team. we are broadcasting live in our studio in hong kong. listen in via the app. lots more ahead. this is bloomberg. ♪

♪ shery: let's get a check of bitcoin. we are seeing some semblance of stability within this highly volatile cryptocurrency. this is what we are trading at the moment when it comes to bitcoin. just 1% to the upside after crisis on tuesday saw a pullback from that double-digit percentage rally that we saw earlier. bitcoin moving as much as 6.5% in the new york session after that six teen percent jump on monday. we spoke with the ceo of australian cryptocurrency exchange btc market caroline

fowler earlier. >> some traders see it as a feature and not a bug. we will see the volatility story play out in decreasing manner as the maturity of the sector revolves. -- evolves. it will stick around for the shorter term. certainly not helps the supply side shocks that we experienced. the announcement that came out of china with regards to additional restrictions on bitcoin and bitcoin minors. we saw the impact that that had on the price. keep in mind that we should expect to see volatility of this nature. >> when you take a look at the demographics of your user base, can you tell us about how it changed over the last 12 months? also the nature of these transactions, how it has changed as well. >> absolutely. the stereotypical crypto investor has evolved and moved

on. certainly in our exchange, we would have been dominant in the age group 25-44. we have seen that shift to involve men and women now. also a stretch in terms of the age profile. we saw about 5% of our user base being aged over 60. in the course of last year, that has shifted, it has doubled. 10% of a larger user base is aged over 60. we are seeing that evolving. speaking to that maturing. with regards to last year, a fivefold increase. that's a remarkable figure and point of growth. that's a longer-term investment. looking at the profile from a much different stance. shery: how long for your investors hold those cryptocurrencies? >> the perception is that

everyone is moving in and out. that is not the case. we found from our research that over 50% of crypto investors in australia are looking at this in the longer term than one or three years. we are not necessarily buying to visit. they are looking to hold and keep it. they see the longer-term investment opportunity here. shery: do they care about those environmental concerns? caroline: to be honest, that's not feedback we have received from our client base. these environmental concerns, the narrative around the environment is just another stone to throw it bitcoin. this is something that has been known. it's interesting here how the narrative has shifted, a problem for the producer rather than the user. when we went from leaded to unleaded petrol, we didn't ask people to drive their cars last -- less.

we moved to where the source of production was and we made the change there. in ireland, we moved from -- to smokeless. we are looking for another stone to throw it bitcoin and this is the latest one. shery: that was the btc market ceo. let's turn to oil holding your a $66 per barrel with no real change in asia. investors way concerns about higher supply from iran against continued recovery in demand. su keenan joins us now with the latest. what doing no on those ongoing talks between iran and more powers? su: the fifth round of talks are ongoing in vienna. it involves an agreement that would reinstate caps on iran's nuclear program in exchange for a return to the oil market and global economy. this would put more oil on the

market. we've seen a lot of trading in these days leading up to an agreement as oil veterans try to gauge when iran might presume its exports. iran's president won backing from his counterpart in china early this week. so that's a key area of focus. another issue is the bullish sentiment about recovering demand. the wednesday supply data will be very instructive when wednesday trading begins in the u.s.. oil is optimistic for the continuing restoration of oil demand. next week is the kick off in the u.s. of the peak summer driving season with the memorial day weekend. shery: in terms of the copper rally giving up gains, what's the story when it comes to momentum in metals? su: what we know is that we did

see a rally in the dollar. that really took the steam out of coppers recent rebound. dive into bloomberg and you will see that the dollar has been nearing a six-year low. there are a lot of factors, the latest week economic doubt it in terms of housing, the fed is turning things around. that is slamming copper. copper has been on a tear. there have been shortages issues and other things in terms of the construction in the u.s. that has put possible supply concerns on copper. now the easing of concerns about inflation and the dollar duration sending copper backwards. very different story for gold which is enjoying a bit of a breakout. let's dive into the bloomberg again. it's been up eight of the last nine sessions and has a raised its 2021 losses. back to you. shery: su keenan with the latest

on the quantity space. quick check of the latest business flash headlines. neither apple nor epic is likely to be pleased if the judge handling their case six to the concerns she voiced at the end of the trial. this judge says she skeptical of the app store allowing for any real competition while questioning epic's motives. the just -- judge says she will make a decision as soon as possible with options including forcing an overhaul of policies. lubell capital is pushing the bendy to pay $4 billion to shareholders. bluebell says the current plan to distribute 60% of shares to stockholders isn't in the best interest of minority shareholders. lubell also wants the plan listing to take place. haidi: let's take a look at the

stocks we are watching. sophie kamaruddin is in hong kong. sophie: consumer staples leading gains. icbc shares up 2.5%. we are watching the stock after goldman got the green light to set up a wealth management jd with a chinese bank. goldman is to own 51% of the share. king stock on watch. -- king soft on watch. the company expected to launch multiple new games this year. it is to invest for r&d. an announcement that the u.s. court in d.c. has lifted all investor restrictions for the security. shery: a quick reminder of markets that are closed today. singapore, indonesia, thailand, malaysia are off. haidi: we do continue to see trading across china with that

equities rally. that's next. berg markets china open. this is bloomberg. ♪

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♪ tom: welcome to bloomberg markets china open. i am tom mackenzie. david: good morning. counting down to the open of trade in the chinese mainland and markets in hong kong. let's get to your talk stories today. stocks holding steady. inflation fears weighed on wall street. the spotlight will now be on china after tuesday's price surge. tom: