♪ >> very good morning and welcome to "daybreak australia." i am haidi stroud-watts in sydney. >> and good evening from bloomberg's world headquarters in new york i am shery ahn,. the top stories this hour. president biden is set to unveil a $6 trillion budget proposal even as the markets fret over

inflation and the possibility of higher rates. >> and jp morgan ceo jamie dimon is sharpening his criticism of bidens's land tax hike for the wealthy saying it will be a drain of capital and talent. >> we speak with the governor of this bank. this is a picture of wall street. u.s. futures gaining ground at the open as we saw stocks rising to the highest in almost three weeks. another cyclical rally, industrial, commodity and financial shares leading the gains. bank index posting back-to-back gains as ceos of the largest vendors testified before congress again. wti crude holding at $67 a barrel, this after closing at the highest level in more than two years. strong u.s. equal data fueling a bullish view, including jobless

claims and orders for business equipment. let's turn to how we are setting up the markets across asia with sophie in hong kong. sophie: futures point higher after asian stocks stalled. jd logistics is making a trading debut in hong kong. we are also keeping an eye on the value. it had a strong tilt in japan. we are waiting there on jobless data which may show a pickup for the month of april. also waiting to see if prime minister suga may choose to extend the state of emergency in the country which may prompt, the boj to extend its pandemic relief program. offshore youan trading just around the 637 handle ahead of the pboc's pressure on the pandemic. the yuan hit 23 high against a basket of currencies. a bullish forecast on the

renminbi from analysts for the onshore rate. it could go over 800 but he does see consolidation given that we are seeing oversold territory on the ris part that dollar-china currency. over at socgen, the u.s. bound taper tantrum is done. we are seeing yields picking up faster which could lead to a divergence in rates that will have may be the euro and the yen looking cheap. this morning trading at a seven-week low. hayley: president biden insect to unveil a budget. it will also run an annual deficit of 1.3 trillion over the next decade. the plan would offer a first look at the administration's effort to boost the size and scope of government.

this is a pretty comprehensive accounting of everything that we have heard so far. it also a thing for the first time offers projections on how it could impact growth, inflation and the implement forecast. >> exactly. we have heard the white house and the president layout individual elements of the infrastructure plan -- the family's plan that has community college funding and pre-k funding, but what this does is wrap everything together and gave those underlying economic projections. omic projections.

we see for the first time what they think will happen with inflation for the next few years. they are projecting a rise in costs. sheri: the spending is pretty aspirational, though. what are republicans proposing? >> this is what the president, if he could wave a magic wand, would want. republicans are disinclined to give him those things. we normally say that presidential budgets are dead on arrival in capitol hill. what's different this time is democrats control narrowly both the house and the senate. while there is resistance among republicans, it is a guidepost for democrats as they enter negotiations over the infrastructure bill, where they have been trading the proposals back and forth, including this morning, to show what is a priority of the white house right now. sheri: white house reporter justin sink with the latest on the white house budget.

inflation is contained, but jp morgan's jamie dimon warns that the economy will overheat in 2022. >> we are heating up. we are not boiling yet, but we are putting more fuel in the fire in my view is that we will get to the boiling point. i don't know that for a fact, but i just think that with 6 trillion dollar stimulus, all the quantitative easing, recovery, the balance sheets which are raring to go, there is a. david: good chance to see overheating sometime in 2022. sheri: he was sharp on criticism of the biden tax plans as he and other ceos were grilled by house financial services committee lawmakers. we have someone in new york with the details. jenny, good to have you in the studio. what was different from yesterday? jenny: it was much bigger committee today and they had lots of different interests, but there were some common themes.

overdraft was the common enemy. these banks were pushed on how they could bring unbanked americans into the financial ecosystem and they were also pressed on the commitments they have been making around finance and what they are really doing on the esg agenda. hayley: how would you rate their performance? heidi: i think they did a pretty good job. there wasn't so much of a fiery exchange that you could point to and they, for the most part, were well prepared. this was a different crisis than we had in 2008, so you have a different enemy that these banks can point to, which is the pandemic. they can say that they were not responsible, and this was not a financial crisis, it was a health crisis. haidi: did we get any points on how they see the economy unfolding post-pandemic? jenny: a lot of them talk about the rebound, but we are worried

that people are getting behind. we heard about that k-shaped recovery being talked about today and what they are doing to help those communities that are behind, help them catch up. haidi: our financial reporter in new york, jenny, thank you. let's get to vonnie quinn with the first word headlines. vonnie: the u.k. secretary said local spread of the india coronavirus variant means it is too soon to say whether england will move to a full of reopening june 21. as planned michael hancock says a formal assessment will be published and remaining restrictions will only be established if it is safe to do so. the latest count shows infections rising over the previous 24 hours. germany is the latest country seeking to expand covid-19 inoculations to children ages 12 and older, as of europe's largest economy seeks a way out of the pandemic.

after meeting with lawmakers, chancellor merkel said the pfizer/biontech vaccine should be approved for adolescents in the coming days. she stressed it would be voluntary and would not impact group participation. authorities are battling thailand's deadliest wave of the outbreak. people aged 18-50 nine are eligible to book appointments for vaccination. malaysia's prime minister is facing renewed pressure to allow parliament to reconvene. a suspended democracy in january, declaring a state of emergency to curb the spread of covid-19. that public anger is growing as the outbreak shows no signs of growing. daily infections have doubled with record number of deaths marked thursday. the vaccination rate has failed to pick up. global news, 24 hours a day, on air and on bloomberg quicktake,

powered by over 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: still ahead, the u.s. secretary of commerce is pledging to do all that is necessary to protect american industry. our interview with gina raimundo's next. don't miss two more interviews. we will hear from salesforce. this is bloomberg. ♪

♪ haidi: u.s. commerce secretary gina raimondo says the u.s. could build six or seven semiconductor plans to help combat the global chip shortage. she spoke with bloomberg technology anchor emily chang. >> it's an economic security problem, and national security problem, and i have to say thank you to everyone that we have been engaged with. they have been great partners.

and this will require public-private partnership. we can't do it -- government can't fix this problem alone. the private sector needs to be there and i think they will be. emily: gm announced it is restarting production at several plants that had been idled. meantime you had covid cases rising at taiwan, the heart of the semiconductor industry. will that impact supply, and will the u.s. do anything to help? gina: you put your finger on a fair problem, which is that we are heavily dependent on a company called tsmc, which is based in taiwan, for a high percentage of our semiconductors, which is exactly why we need to make semiconductors in america. you know, it would be our plan to build another six or seven manufacturing operations in america over time so that we won't be so vulnerable to

relying overly on one company or one country. emily: speaking of countries, obviously improving infrastructure and supply chains helps to boost u.s. competitiveness against china. the administration has been reviewing its approach to china. when i we going to hear more about the findings and the strategies there? gina: this is an ongoing process more than a process with a particular big announcement or deadline. but we are doing it now. for example, talking about semiconductors, that is core to our strategy as it relates to china. we need to invest in america. the president's's job plan is about competing with china to improve our education system, improve our infrastructure, invest in manufacturing. the way to compete with china is to run faster, to invest in

america. in terms of defense, we have not slowed down. my department, we have continued to add chinese companies to the entities list, we have subpoenaed a number of chinese companies to extract information from them, and we will do what we need to do to protect american industry. shery: that was the u.s. secretary of commerce, gina raimondo, speaking to bloomberg's emily chang. bitcoin is trading at around 39,000. the high-priced today, $40,440, starlink just ahead of its 200-day moving average. it has been hard to get through. we have seen it stall around that level, showing how challenging it is to regain the upward momentum in price. we have seen people talk potentially about ethereum toppling bitcoin as the top cryptocurrency in the next few years, already the go-two

platform for nfts and other contracts -- the go-to platform for nfts and other contracts. let's discuss the future of digital currency with our guests. will bitcoin continue to lead, when we have so much volatility right now? >> that's a good question. we do not believe it is going to continue to be the leader, by no means. no digital currency with that much volatility can be the widely accepted cryptocurrency. we had a 30% drop last week in a single day. it is also not a store of value. you can't have volatility with an alternative. to ask it is not an alternative of gold either because of its volatility. we relate it to art. like digital art. that's because it has no intrinsic value, its value depends on what people want to pay for it.

it is based in perception. the other thing we can relate it is a watered stock. now we have more and more cryptos coming in so the supply is higher and the more supply you have, that dilutes the value of each cryptocurrency, including bitcoin. haidi: so what is the least volatile way of gaining exposure into the crypto trade, if you will? eva: we are very concerned now with exposure in general. as you mentioned earlier, if we had to choose, we would go with ether, just because of the smart contracts technology, and because it is better for the environment. but, in general, bitcoin is the polar opposite of esg. regulation is not a matter of if, rather than when. we expect it to happen imminently. for that reason, we would not be

buyers of any cryptocurrency at this point, especially after the fact that the cbdc issued a white paper in the summer -- they will issue a white paper in the summer. that will warn of literally in the crypto market. haidi: outside of crypto, shifting gears, there is some concern when it comes to emerging markets that the inflationary impact may not be as transitory as the develop market. is that something you are watching in your investment ethos? eva: certainly. we believe we are coming from very low levels of inflation glibly. we understand -- globally. in the last few years we had inflation ranging from 0% to 4%. we are in some regards spoiled with very low levels of inflation. that being said, we are

monitoring very closely food prices, especially corn. many people don't realize that 10% of corn is used for direct consumption. by the way, it has increased year-to-date 35%, a huge increase. 9% is used indirectly for other products and that can create a cost push inflation. wages is another thing we are tracking, and, of course, government spending. 10% increase in debt in 1.5 years. all of these factors together create a lot of concern. shery: concerns about inflation and stress valuation, we continue to see that rotation into value and into cyclicals whether in emerging markets here in the u.s.. the nasdaq 100 again underperformed other benchmarks. is check down at this point -- is tech down at this point? eva: we don't think it is done. some pockets of the tech

have dropped but their growth does not really affect -- some would argue that would cyclicals now having more money, that is fueled into tech. growth can only get higher going forward. they are priced very attractively now. we think they will come back. we have already seen some stocks going up significantly over the last week and we think this will continue. that being said, there is a lot of speculation, with ipo's, emerging markets, cryptocurrencies. all these things create a lot of volatility in the market. haidi: always great to have you, eve does, capital impact advisors ceo joining us out of boston. they are back, huge retail driven rallies in meme stock names. we have amc rising close to 50% in the last session. what are we seeing at the moment?

susanne: we know it is a momentum driven trade. once again, retail investors driven by wall street memes on the rated platform. it is mainly amc, reaching guys. gamestop is there, as well as blackberry. you go to the year-to-date stock for amc and that is where you see the dizzying rise, the stock up more than 1100% year-to-date, having tripled since its may 6 earnings. as we saw earlier in the year, this rally is already drawing pain from the short-sellers. a $1.3 billion loss from the four-day rally, according to a financial analytics firm. the basket of original stocks at the beginning of the year restricted by robinhood has left

the s&p 500 in the dust. as you recall earlier this year in january, it was gamestop that ruled all the way up to almost $350 before coming back down. now it is within $100 of that price. the prior rally caused losses to many short-sellers, namely melvin capital. again, we know they are causing losses again. back to you. shery: quite a rise. bloomberg's su keenan. coming up, melbourne is in lockdown for a third time as authorities aim to curb a growing covid cluster. this is bloomberg. ♪

haidi: bloomberg's bureau chief rebekah jones joins us. this is a familiar refrain for you. what are the rules that come into play? rebecca: the state has ordered a curfew. people are only permitted to leave when shopping for essentials, caregiving, work that is authorized, up to two hours of exercise and also to receive the vaccination. importantly also, masks are back and they must be worn indoors and outdoors. workers unless they have an exemption and can work from home, can do so. this rule was imposed in prior lockdowns. travel outside the home was only allowed within a three-mile radius. this will also be in place until next thursday night, june 3.

sheri: what do we know about the vaccination rollout, which has been pretty slow? rebecca: the government expected inoculations to be largely complete by october although, that has been pushed into 2022 because of complications tied to the astrazeneca job. -- astrazeneca jab. we have been controlling largely the virus through this combination of testing, contact tracing and closing the border to nonresidents, but what we have done recently, in concert with those restrictions, the government has widened the eligibility for those to receive the vaccine here, 40-49. whether or not that will be enough remains to be seen. haidi: thanks, rebekah jones as melbourne enters a seven-day lockdown. the next three days will be

crucial. giving you the latest numbers as they get to us. meantime, as mentioned, the vaccination rollout has been slow here in australia. qantas, though, is considering giving away free flights or air miles to people who have had the covid-19 vaccines. they are joining with this growing list of businesses, even governments, that are trying to incentivize people that are complacent or unwilling to get a vaccine to go and get the j abs. we are hearing that fully inoculated qantas flyers could get credits. that is due you to run until the end of 2021. we are expecting the vaccination program to still be really ongoing at that point. shery: we are getting lots of incentives here in the u.s., as well. but i think perhaps a different story to australia, that really doesn't have enough vaccines. here in the u.s., we have about half of all adults fully vaccinated. now we are just trying to get

the small group of people that haven't been vaccinated to get a vaccine. we have united airlines launching a sweepstakes that is only open to fully vaccinated travelers, offering free flights anywhere in the

>> you're watching daybreak australia. i am vonnie quinn with the first word headlines. president biden is reportedly set to unveil a budget that would push federal spending to $6 trillion. the proposal includes deficits of $1.3 trillion each year over the next decade, with federal debt rising 117% of gdp. the president plans to meet republicans next week on his current infrastructure spending bill. the senate voted to move forward

on a wide-ranging bill aimed at bolstering u.s. economic competitiveness, and confronting china's rise. the bipartisan plan calls for $150 billion to be pumped into the u.s. semiconductor manufacturing. it also has measures that target china related to human rights. the procedural vote is soon. the e.u. and japan have issued a joint statement stressing the importance of peace and stability in taiwan. it followed a virtual meeting between the japanese prime minister, the european commission president, and the european council chief. a similar statement issued after suga met with u.s. president biden. twitter is calling a visit by indian police to its offices a form of mediation. twitter has clashed with the indian government on several fronts, most recently marking posts about the opposition as

twitter says it is concerned about recent government actions, including new i.t. rules and regulations that they say limit public expression. global news, 24 hours a day, on air and on bloomberg quicktake, powered by over 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. ♪ sheri: the reserve bank of new zealand took a big step at this week's meeting even as it changed none of its policy settings. it joined canada in flagging a potential rise in its key policy rate year as the economy recovers from the pandemic. kathleen hays is standing by with a very special guest. kathleen: yes i am. adrian orr, governor of the reserve bank of new zealand joins us. it is great to have you back to talk about policy and what is going on. thank you for joining us? adrian: it's a privilege, thank you. kathleen: the privileges hours. you reinserted your forward guidance, your projection for

the official cash rate, and as you did so, you took the opportunity to say it is possible that the first rate hike could come by september of next year. why now? what was driving this decision? were you trying to make sure the markets were on the same page as the rbnz? adrian: we are always doing our very best to provide some guidance, some forward-looking markers for the public to be able to see, including financial markets, around how we see the economy unfolding, and hence, conditional on all of that, what we may need to do regarding monetary policy. so, yes, we have become confident around a central projection, and that projection is one where we see inflation pressures finally, i would say,

normalizing, and one where we hopefully can be normalizing the level of interest rates back to a more neutral level. there is a long time between now and the middle of next year, as we have seen, but that is our best foot forward at this point. kathleen: is the virus or vaccines, new zealand's success at fighting the pandemic, is this the main thing that is opening the door to saying, maybe we could be hiking rates again? it is an optimistic -- if an optimistic scenario comes true? adrian: without a doubt, covid-19 helps implications -- they are the number one drivers of uncertainty globally at this point. it is two parts of the equation. first, new zealand has been successful -- touch wood -- to date in fighting the virus. that puts us in a good starting position in recovering the

economy. we are almost back to the level of output pre-covid. so that has put us in a good starting position. but what has given us more confidence around talking about projection is the global projection, where vaccines are being rolled out, the horizon can be seen, still some way off, but it is removing some of the extreme downside risk to the economic projections that all of us have been struggling with. we are now in a more balanced manner, we are in a position where we can say, look, subject to the covid rollout, the vaccine rollout says, as explained in our documents, and many other assumptions, we see improving conditions. kathleen: if you hike the key rate, if you move it up to 1.5%

by the end of 2023, which is also part of the official cash rate rejection, you could be out in front of the federal reserve, because the federal reserve has not given any signal is ready to move its key rate up before the end of 2023 or 2024. could there be negative repercussions like, a currency that continues to strengthen? adrian: i think the relative economic divergences are always something we need to think about . from outside, our activity is largely in part determined by what is going on globally. we need to see the global economic growth. we know it is being supported by monetary policy not just in the u.s. but around the world. we need to see the support going to make sure they really do anchor sustainable growth.

and for tourism and trade to normalize. that is a big part of it. how and if we get a hit in other central banks, there is a lot of water to go under the bridge. the financial markets, the exchange rates should be reflecting relative inflation differentials and relative productivity differentials. there is not a lot of divergence globally between them because of the common economic shock we have all seen. kathleen: then, do you have a sense that other central banks like the federal reserve are going to see what use when you make this statement that depending on how things go, we could be raising rates as early as next year? is it passable that euro cents, having been in central banker yourself for many years, that others, including the fed and the ecb -- although the fed seems like the likely candidate for moving data, some officials even saying they would like to move it up. adrian: i think it is really

important we have independent monetary policies, because we have independent currencies and we are operating within our own economic environment. i have full confidence that central banks are thinking about their own domain, their own influence and what they need to do. here for us in new zealand, given we are at a very strong starting point prior to covid -- low-inflation, very strong fiscal position, high levels of employment, we are in a position where we have recovered quicker and touch wood around the covid issues, that we may need to move ahead of other people. but i think a lot of this will be lost in the wash, given the commonality of the challenge we all have. kathleen: would it stop you, did give the rbnz pause to start raising rates next year if others like the federal reserve have signaled that they are not

ready to go? adrian: no, we have to do the right thing by our remit for our country. so if we saw and believed that inflation pressures were getting too much for employment was clearly at its next unsustainable level, than that gives us great confidence to be able to move to a neutral interest rate let's. kathleen: look at something that is definitely part of your remit, your dual mandate -- inflation in your target, in nice, strong labor market -- inflation near target and a strong labor market. inflation will not necessarily be a target when you are thinking about raising rates. so, because you have seen the improvement in the unemployment rate faster than expected, is that part of the mandate you're going to meet? when you put the key in the door and unlock that rate hike? adrian: yes.

monetary policy always has to be forward-looking. i think a lot of the discussions -- most central banks have a specific date prior to which they said we will leave things unchanged. we have never done that. we have said it is conditional on what we are observing. a key thing that we will be observing is the employment -- is that employment is near its maximum sustainable level. it was at that level prior to covid. so we are doing more work in that space. kathleen: i wanted to ask you about wage pressures in the pipeline because of the tight labor market. adrian: we certainly are, but only in some sectors of the economy. this is a global challenge, again. the first thing is labor shortages. we know on the other hand that

there is unemployment. so the variances between sectors of the economy, and between countries. on aggregate, there is surplus labor, but in some sectors, without a doubt, we have labor shortages, particularly with immigration being constrained for some reasons. that is a natural part of the economy picking up, wage growth, to drive and attract labor, specifically into those sectors. our real challenge is how quickly can labor move? how fixable is the labor market from super serious shortages and so on? we'll watch that weird we are not concerned about the generalized wage inflation. kathleen: you stress that any tightening will be conditioned on the health of the economy.

what's the biggest risk you see that would make you say -- it is september, but there is something that has come up, some negative in the economy that we will push this rate hike out in the future? adrian: there is probably two. the first one, to your viewers, of course, it is the covid situation. you just seem close to us, victoria and melbourne back under lockdown. these events are dramatic. what it does is it holds back the ability to travel and be a tourist. so that is kind of the international one which we watch. domestically, we know that a big part of the spending increase we have seen has been driven through asset price wealth, particularly house prices, and also government spending. we know that balance sheets are

more stretched. there is a lot more -- it is how households react to interest rates. we love to forecast smooth lines , but life does not work that way. so we are talking to people and saying, hey, think about the medium-term, not just the current price you are looking at. kathleen: you forecast house prices to start flattening. that is a plus as these soaring house prices have been problematic for a lot of put in new zealand. at the same time, if home prices flatten, does that perhaps flatten consumer spending as well? adrian: yes. wealth is one of the channels monetary policy works through. . when interest rates go down, people hold those assets and they feel wealthy and they go out spending. we have seen that behavior. but it is only one channel. the other channels are through

the exchange rate or through cash flow, cash flow is the most important. we have put into our projections enteromedics living in the house price growth, from double -- a dramatic slowing in-house price growth. we know that the actual asset price moves far quicker than the underlying fundamentals. here in new zealand, house prices have growing far faster than any of the underlying fundamentals -- the population growth, very flat. taxation increases on housing and investment, significant increase. all of these things suggest a much lower profile for house price growth in the absence of the psychology of people. kathleen: let's talk a little bit more about inflation because, again, your time at the rbnz years ago when inflation

targeting was being considered, so you have been watching these issues while long time. is it still the economy it was, where prices, there is no way to get them to move higher and stay there, or have we had a game changer because of supply bottlenecks, but maybe also because of fiscal stimulus? there is so much spending. you are saying the inflation surge will be temporary. what is your number one worry when you think, maybe i am wrong? adrian: i think underlying the importance -- again, the frameworks are the same. the assumptions you need to make are the same. the goals of the central banks are the same. conditions will always change. you talked about government spending doing a bigger part of the lifting than monetary policy. that is a good thing. monetary policy needs friends.

we have got friends and they are doing a good part of the heavy lifting, which makes sense given the nature of the shock. the second part is, with the fear of the stagflation -- it is such a different world. there is a single global price for so many of the raw materials, intermediate imports, in the final consumer goods for the globe. we are prepared to wait. we google, we don't go to the shops. etcetera. so the environment is still one of low and stable inflation. this is why central banks are probably showing more caution to the upside, they are prepared to wait longer because they are more comfortable with the fact that we have stable inflation, much more flexible set of pricing, less of generalized inflation. and that is why inflation is

petitions are well anchored. they know we will react if they become un-anchored. kathleen: thank you so much for taking time to explain these important issues. we look forward to talking with you again soon. adrian: thank you very much. all the best. kathleen: that was the reserve bank of new zealand governor adrian orr. heidi, back to you. haidi: that was a great conversation with governor orr, kathleen hays with that interview. sophie kamaruddin is in hong kong. it has been a blockbuster week for the yuan. 6.20 in the making? sophie: there is a path to six .20, a path we have not seen since 2016 as the currency has seen a level that has held for the past three years, making it the best performer in asia this year. one bank is noting that a softer dollar is part of this equation, and seeing it continue to weaken as that fed's balance

sheet continues raising. they see the devilish fed and the lower real rates in the u.s. and china has a strong export future allowing the currency to appreciate after it rose to a 2016 high against the dollar, as we see on the chart right now. shery: that pboc is saying that the yuan is not a tool to offset inflation even as authorities try to cool raw material prices down. many don't expect china's crackdown to actually kill the rally. sophie: the underlying target of china's policy when it comes to curbing prices, citi says it comes down to wanting to curb the pace of commodity prices to give down stream industries some breathing room. and when it comes to base metals, given the price dynamics, citi is think it should limit china's bandwidth. flipping the board over to

goldman, the team there noting that china is no longer the marginal buyer dictating pricing, given the velocity of the curbing we are seeing in developing markets. seeing a clear buying opportunity in commodities. there is evidence of a supply response that could derail that full of run they are seeing in commodities -- the bull run they are seeing in commodities. haidi: this customer relations software projected annual profits increasing. shares of salesforce gained. forecasted-quarter sales jumped. let's bring in the president and coo. thank you for joining us. talk us through the results.

what was a standout for you and how it impacts your assessment of what the post-pandemic looks like. >> thank you. it was just an incredible quarter. we spent the timing or business trying to position ourselves to help our customers grow out of this endemic and it even exceeded our expectations for a few reasons. number one is the relevance of the salesforce customer 360 platform. we have digital sales, digital customer service, digital commerce, the tools that all the customers are looking for. they like the acceleration in the economy and they are thinking, how do we get back to growth, just more relevant than ever before? second is the economy, we are really seeing ceos really getting back to investment, trying to get back to growth. and finally, just the execution in our business. we are really trying to embrace this all-digital work-anywhere

world. i think we are executing as well as we have or have and you are seeing it in the numbers. haidi: there has been concern that this lack deal is indicative of the lack of our gornick -- slack deal is indicative of the lack of organic growth in your company. bret: our organic business has never been stronger. our revenues were up 23% year-over-year. we raised our full year of fiscal 22 guidance to a 26 billion, 22%, on the strength of our business. look across our portfolio -- sales, customer service, marketing and e-commerce, qc incredible demand from companies like honeywell, sonos, and we are excited about not only that strength of our organic business, but also the opportunity to bring together slack, which is really the digital hq for this all-digital world, together with our customer 360, and we think the

opportunity is incredible. shery: what sort of impact will the reopening froms the pandemic lockdowns have on your business? bret: it was really exciting, actually, just in the past couple of weeks, we are not the reopening of salesforce our london and salesforce power san francisco. our ceo and i were in the tower this week. we are seeing an exhilaration. that is reflected in the demand environment in our customer base. as the vaccines become more effective, as places like the united states and the u.k. and europe you're really seeing caseloads going down, the economy is reopening. industries impacted by the pandemic are investing in growth again and you are seeing it in the numbers. the more interesting question is, talking to executives and our customer base, a lot of companies have found a new way to operate their business.

businesses started selling over zoom rather than getting on flights. the really interesting question is, what is this new way to work, and for us, how do we position salesforce customer 360, and once it closes, slack, to be the operating system for growth around the world? sheri: has the growth come from new customers? bret: all the above. there was no weaknesses in the recorder. we saw a higher growth rate in hq1, over 20% year-over-year. those seven-figure deals were made up of more than 4 of our clouds. companies invested in digital customer transportations. we are seeing this in every segment and every market. it is the strongest q1 in our company's history. haidi: where are you seeing the downside when it comes to companies struggling with the virus india resurgence is in

japan,, countries still struggling to get a group like brazil. are you seeing the fallout? bret: our hearts go out to india, brazil, and took countries experiencing resurgence in some parts of asia. the pandemic is not over. the recovery is happening in and i even way. san francisco, my hometown, is recovering rapidly and we have a number of employees horribly impacted by these variants. a couple of things. one, despite the unevenness in our recovery, everyone is optimistic about the recovery and growth, as you can see in the investment. it is more important and never that we recognize our businesses can do well and do good -- i am proud we have actually shipped two airplanes of oxygen and medical equipment to india to help do our part with the recovery. a huge part of salesforce's

business, we truly believe business is a big -- of change in the world, and in the pandemic, more than ever. haidi: we heard from marc benioff earlier saying that he would be returning in-person to all the major cities. how does that work when everyone needs to be fully executed to attend? bret: first, i am so excited we are doing the conference again, it is a huge part of what our company does. we are doing the first ever global conference, in san francisco, new york, london and in paris at the same time. international travel probably will not be back the way it was, and recognizing that, we are trying to do it globally. it will be smaller. not the 2000 people used to have. a couple of things, we are investing in the digital experience. we recognize not everyone who wants to go will be able to go. i mentioned our customer base,

the digital transformation we have all gone through is not going backward. same with dreamforce. i can't tell you how it is going to work. three months ago i couldn't have told you we would be reopened as much as we are. we are following cdc guidance. we have one of the world's greatest epidemiologists helping to guide us. do we know how it would look like in november? we think part of the reopening is leaning into this. i am looking forward to having a family reunion with all our salesforce customers. it will probably be a little different. shery: bret taylor, great having you on salesforce president and coo. we will have more on the tech sector earnings ahead and lenovo ceo joins bloomberg markets exclusively later. coming up, we hear from the largest dedicated asia-only investment in the u.s..

the portfolio manager joins us. for us, how the u.s. can more effectively capitalize on diversity in organizations. martin davidson from university of virginia will join us. this is bloomberg. ♪

haidi: hello and welcome to "daybreak asia." sophie: we are counting down to asia's major market open. shery: and good evening from new york. our top stories, president biden is reportedly set to unveil a $6 trillion budget proposal, even as inflation rears its head. asian stocks rise on the backf