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 back of

gains in u.s. secular goals -- u.s. cyclicals. plus, bank ceo's re-think calls for audits. martin davidson discusses the push for more diversity in the finance industry. haidi: let's take a look at how we are setting up for this final friday session of the trading week in asia. sophie kamaruddin is in hong kong. sophie: this friday asian stocks who clinch a 6th session of gains in seven after selling thursday. u.s. futures also nudging higher. in japan we are watching for a potential decision to extend the price emergency in tokyo and other areas. jobs data untapped from the country. unemployment rate expected to rise to 2.7%. also an earnings report card from h1. -- from matwean. the city's second-biggest ipo. checking in on other crest at serling this friday session, wti

topping $67 a barrel, set for the best week since early march. the path is upwards for commodities like oil, copper and soybean, even after china attempted to cool prices. we have the pboc rate not a tool to reign in commodity inflation. offshore u.n. trading around 637 handle. set for a seventh weekly rise. 620 looking likely with a more bullish forecast from analysts. check out the pound yen. the pound trading around post-brexit highs amid the divergence we are seeing in vaccination rates in both countries. treasury futures ticking slightly lower after we saw u.s. 10 and 30 year yields rise the most in over a week to push the benchmark rate above 160 in

anticipation of biden's spending plan. bloomberg pretty thin the u.s. 10 year yield could move above 2% by year end as the u.s. economy continues to improve. given chatter about fed tapering may weigh on treasuries later this year. shery: let's discuss that budget plan president biden is set to unveil. that would raise a spending to $6 trillion according to the new york times, and run annual deficits of more than $1.3 trillion over the next decade. the plan will offer a first look at the administration's effort to boost the size and scope of the federal government. let's get the details from our white house reporter. this is largely aspirational. so what are republicans offering? jennifer: the budget proposal that will come from the president tomorrow includes not just the run of the mill spending, the spending levels

carrying over from last year, but also includes the presiden t's jobs and infrastructure proposal and families plan, which adds trillions to the spending total over what it would be otherwise if those bills did not pass in some form. what republicans are offering is just criticism of what is coming from the president, worrying too much of spending will contribute to inflation, that inflation is not -- the administration keeps insisting more of a short-term transitory thing the next couple months, but this is setting up the u.s. to head in the direction of long-term inflation and other issues that stem from that. haidi: of course the gop is

criticizing the broader budget and spending, but they are also defending the -- criticizing the defense allocation as insufficient. jennifer: it is not necessarily a surprise that no matter what biden would offer, the republicans would say that there was a need for more, and that is what they are doing here as well. they are just saying it's not enough, that there is a need to bump up those numbers even more. because that is sort of the direction republicans have taken. and the trump administration took as well for the last four years. haidi: white house reporter jennifer epstein there. while the biden administration said inflation is contained, jamie dimon warned the economy will overheat in 2022. >> we are heating up.

we are not boiling yet we are putting a lot more people in the fire. my own view is we will get to the boiling point. i'm not betting on that, but i think $6 trillion of stimulus, all the qe, the recovery, the balance sheets which are raring to go, i think it is a good chance you will see overheating some time in 2022. haidi: he also sharpened his criticism of biden's tax plans as he and other wall street ceo's were grilled for a second day. allison williams joins us now. we saw a pretty consistent message being conveyed across these hearings. there were no big moments so to speak in terms of getting called out by the testimony. but what was your testimony -- your take away from the testimony? allison: a couple interesting things. first i thought it was interesting to hear from the

ceo's with regard to their biggest worries, and interesting that cyber was cited by four of the six. certainly that is something that we are concerned about and think is one of the bigger risks ahead. some of the other things include global government debt, which again, it partly relates even knew the comments of jamie dimon when he talked about all the stimulus and the overheating. those are definitely things that we are watching. . the second point i think is interesting about the hearings is this focus on overdraft, which i feel like is sort of focusing on one's -- one specific metric and not the whole picture. i would say this has really changed at the banks and i do think there was a lot of room for improvement several years ago but we have had changes since and customers now have to

opt into overdraft. so it is a protection you have to ask for. it perhaps does not look at the fuller picture of those types of accounts that pay other types of fees. shery: what about racial equity? how much improvement have we seen on that front? that was also a big issue in the hearings. alison: i think it is tough to say how much improvement we have seen. i think we are hearing a lot of talk at the moment, and i think that is something that we have seen a lot of, not just from the banks, but obviously globally in the last year or so. and it does seem like the banks are making bigger commitments, and i think that is something that we are going to have to sort of see how those efforts progress in the coming years. but certainly that's an issue that politicians are raising, and that managements are each

committing to address, perhaps in different words and efforts, but clearly a focus. haidi: the aspects we saw criticism of, predatory lending, overdraft, as well as the ethical lending practices, lending to gun manufacturers, oil drillers. did we glean anything in terms of the responses to that? alison: i would say that the responses were pretty consistent with the efforts across the banks. and obviously there is a debate in terms of what is a bank's responsibility, both to shareholders and to society in terms of the types of companies that they finance, and what are the roles that they play and their obligations to the various stakeholders. because banks have not only employees, they have clients,

shareholders, regulators, they play an important role in society, so it is important. i think a lot of the efforts they are talking about and that they have said over time, for example, is saying you won't finance x, y z company because of what they do is not necessarily the best way to create change in the world. it is perhaps better to work with those customers over time and help them to change. because if you just say you will not finance them, then they can go onto another bank, and that is not necessarily driving change. shery: alison williams with some insights into those two days of grilling in congress of bank ceo's still had. -- ceo's. still ahead, martin davidson joins us. next, we hear from gina raimondo on plans for the u.s. to build its own semi conductor plants

as it looks to reduce reliance on other nations for chips. this is bloomberg. ♪ ♪

vonnie: this is "daybreak asia." the u.s. 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 more than $150 billion to be pumped into r&d and u.s. semiconductor manufacturing. it also has measures that target china related to human rights. it is the first of two votes before the senate makes a final decision. the european union and japan have issued a joint statement stressing the importance of peace and stability in the

taiwan straits. it follows a virtual meeting between the japanese prime minister, the european commission president, and the european council chief. a similar statement after japan met with president biden drew criticism from beijing. taiwan's ruling party says it plans to double stimulus funding as the economy reels from tightening virus restrictions. the democratic progressive party is calling on lawmakers to approve $15 billion of additional funding. authorities face pressure to move quickly after a virus surge. the island already issued subsidies for industries and vouchers for more than 98% of residents. the u.s. health secretary is local spread of the coronavirus variant first identified in india means it is too soon to say whether england will move to a full reopening june 21 as planned. he says a formal assessment we published before june 14, and remaining restrictions will only be lifted if it is safe to do

so. the latest daily case count shows infections rising over the reviews 24 hours. 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. shery: ewers, secretary gina raimondo says the u.s. could build six or seven new semi conductor plants to help combat the global chip shortage. she spoke with emily chang. sec. raimondo: i think there is broad bipartisan recognition that we cannot afford not to do this. think about your own life. everything you do relies upon chips. your phone, your appliances, your computer, your car, artificial intelligence, not to mention the national defense applications. so we have to get it done and i believe we will get it done. emily: are you hearing what you want to hear from the industry? are you getting what you need on that front? sec. raimondo: yes.

yes, thank you. as you mentioned, i convened over 35 ceo's last week, leaders in the semi conductor industry. and they have been very collaborative and really leaning in with us to find a solution to this problem. it's an economic security problem, it is a 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 cannot fix this problem alone, and the private sector needs to be there, and i think they will be. emily: gm just announced they are restarting production at several plants that had been idle due to the chip shortage. meanwhile, you have covid cases rising in taiwan, the heart of the semi conductor industry. could that impact supply, and will the u.s. do anything to help? sec. raimondo: well, you put your finger on a very important

problem, which is that we are heavily dependent on a company based on taiwan for a high percentage of our semi conductors, which is exactly why we need to make semi conductors in america. 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: so, speaking of countries, obviously improving infrastructure, including supply chains, helps to boost u.s. competitiveness against china. the administration has been reviewing its approach to china. when are we going to hear more about the findings and the strategy there? sec. raimondo: i would say this is an ongoing process more than a process with a particular big

announcement or deadline. but we are doing it now. for example, we're talking about semi conductors, that's core to our strategy as relates to china. we need to invest in america. the president's jobs plan is all about competing with china. improve our education system, improve our infrastructure, invest in manufacturing. the way to compete with china is to run faster, invest in america. then in terms of defense, we have not slowed down. in my department we have continued to add chinese companies to the entities list. we've subpoenaed a number of chinese companies to extract information from them. and we are going to do what we need to do to protect american industry. emily: the colonial pipeline hack has raised awareness about the vulnerability of our infrastructure to cyberattacks. what do ucsd biggest risks to businesses here, and what does

your budget do to address this? sec. raimondo: unfortunately this is a large and growing risk to u.s. businesses. i think colonial was a wake-up call to all american businesses that they need to do more. i think particularly smaller businesses for whom it is difficult need to invest more. we are investing heavily at the commerce department in shoring up our own cybersecurity, as well as researching cyber and cyber technology so that we can continue to make ourselves more secure. shery: u.s. secretary of commerce gina raimondo speaking with bloomberg's emily chang earlier. next, we take a look at bond markets with teresa kong and her inflation view for emerging markets. this is bloomberg. ♪ ♪

shery: we are counting down to the start of trading. some stories we're watching, japan and eu leaders have released a joint statement referred to the importance of peace and stability in the taiwan strait. the prime minister says he will make a decision on whether to extend a virus emergency after consulting with a panel of experts later friday. we will also be breaking japan's jobless figures and inflation data for tokyo at the bottom of the hour. in south korea, national pension service's largest investor needs to discuss five-year target ratio and investment resurgence. president moon jae-in says south korea should keep its budget expansionary through at least next year to ensure clear economic rebound through broader

society. and samsung display is considering extending lcd panel production until the end of 2022. haidi: bond volatility is starting to fade as central bankers dampen circulation -- speculation. our next guest says it may be transitory. the risks of overshooting are well contained. the same might not be true for some emerging markets. joining us now is teresa kong. when you said that, it is actually india is one of the key examples you are concerned about. teresa: right. while we expect u.s. inflation to be temporary, we think that there are definitely inflation risks and other parts of emerging markets. specifically in places like india. we are currently underweight indian currency as well as interest rates. as we do see some risk for inflation to overshoot. that is not our base case but until india has reached herd

immunity, we think covid will continue to pose an administrative challenge to the country and we do not think that is adequately pricing securities today. haidi: herd immunity is a big ask, even for countries that have made really good progress on vaccination. what is the kind of readjustment to investment strategy and expectations if most countries around the world do not reach a level of what we understand as herd immunity? teresa: i think this really appears in the growth differential between the countries that have any countries that have not. -- and the countries that have not. we are seeing strong recoveries in the u.s. because vaccination rates have been up a lot. the big question is whether other countries can keep up. if they cannot, that we are probably going to see stronger u.s. growth, meaning probably a

relatively strong u.s. dollar. and eventually that growth will translate into consumption demand that will help export-oriented countries in asia. shery: let's talk about china, because we continue to see it awash in liquidity. the government coming out and tamping down on different sectors of the economy including property where we are hearing about taxes and all sorts of measures to really clamp down the overheating. what does that mean in terms of the bond market there? because we have already seen the repercussions in stocks. teresa: yeah. we actually see the regulations the chinese government has placed on the property sector as a positive. the reason is that actually lowers the default risk for the entire sector. for many management teams, one of the best ways to drive a high return of equities and use that as funding to expand. and so for the government actually be acting on behalf of

bond investors is not necessarily a bad thing. as such, we are actually adding to our position, especially in companies that have strong balance sheets and management that has shown their ability to execute. shery: can you say the same thing for the tech galatians we continue to see? teresa: -- the tech regulations we continue to see? teresa: are you referring to anti-monopoly rules? shery: yes. teresa: to some extent the market is beginning to digest the implication of these rules. for example, some of the companies additionally had a larger premium, i.e. the likelihood of alibaba for tencent bind the company -- buying the company. given these new anti-map of the rules, -- that translated into opportunities. that is where we are actually adding small positions to add to our bond portfolio.

shery: teresa kong, great having your insights. here is a quick check of headlines. wework founder adam neumann is set to see his payday grow as the company plans to go public through a spac deal if successful. he was awarded shares worth more than $245 million at the current price of the acquisition, which is expected to merge with the shared office space provider. the extra stock was awarded to him by softbank in february as part of a settlement agreement over his 2019 exit package. pay tm is planning to go public in what would be india's largest if you ever. bloomberg learned india's leading digital payments provider is aiming to raise about $3 billion in an ipo late this year. they are backed by investors including berkshire hathaway. they are targeting a $30 billion evaluation with morgan stanley

the leading contender to run the offering. next, we're expecting on a plymouth figures from japan in a couple minutes. we will break those to you as we get them. this is bloomberg. ♪ s is bloomberg. ♪ look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. (woman) i don't want to look like this anymore. (man) what is happening to my body? (woman) why can't i lose weight? (announcer) you may be suffering from insulin resistance. measure your waist. females measuring more than 35 inches and males measuring more than 40 inches

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shery: breaking news out of japan. we are getting the jobless rates coming in for the month of april at 2.8%, which is higher than the estimate of analysts surveyed by bloomberg. it is also higher than the previous month. the applicant ratio has fallen to 1.09 from 1.10. we are also getting the tokyo cpi numbers iran year. a contraction of .4%. it's smaller, a slower deceleration than what we were

expecting, yet it's still a deceleration when it comes to core cpi numbers. a contraction of .2%. that number has been in the red since july of last year. of course the tokyo cpi numbers for the month of may very much indicative of where national cpi will head this month as well. the numbers not looking too great in that sense. core cpi as well, a contraction of .1%. it is a contraction from staying flat the previous month. jobs numbers also pretty disappointing. we are continuing to see those mismatches in supply and demand for labor, and perhaps we could be seeing more demand for medical and nursing staff, given the increased cases of covid. but those service workers, really those jobs have declined. tokyo cpi as well, demand picture not great, core cpi contraction of .2%.

we continue to see the japanese yen hover around its lowest levels since april as we continue to see that rebalancing. haidi: not moving the needle for the bank of japan, but we are hearing about other central banks potentially talking about the steps to normalization. the reserve bank of new zealand took a big step this week, joining candidate and flagging a potential rate increase next year as the economy recovers from the pandemic. >> yes, new zealand has been successful to date in containing the virus. that has put us in a good starting position for the economy. it's been, we're almost back to the level of output pre-covid. that put us in a good starting position. what has given us more confidence is the global covid position where vaccines are being rolled out, the horizon

can be seen, although it is still some way off. it is removing some of the most extreme downside risks that all of us have been struggling with. so we are now in a more balanced manner. but we are in it position where we can say, look, subject to the covid rollout, the vaccine rollout as explained in our documents and many other assumptions, we see improving conditions. kathleen: if you do hike the key rate by 25 basis points in september, if you move it up to 1.5% by the end of 2023, which is also part of this official cash rate projection, you could be out in front of the federal reserve, because they have not given any signal, the consensus to move their key rate up for the end up 2023, 2024. is this a concern?

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. importantly from our side, our activity is completely and largely in part determined by what is going on globally. so we do need to see the global economic growth. we know that is being supported by similar monetary policies not just in the u.s. but around the world. so that is baked into our projections. we need to see that support going to make sure they really do anchor sustainable growth. to be purchasing our goods and services and for tourism and trade to normalize. so that is a big part of it. how and if we get ahead of other central banks, there is a lot of water to go under the bridge there. the financial markets exchange rates in an economic sense should be reflecting relative

inflation differentials and relative productivity differentials. there is not a lot of divergence globally between that because of common economic shock we have all received. kathleen: employment down to 4.7% now in new zealand, faster than you expected. that is the part of the mandate you have to meet, we will put the key in the door and unlocked that rate hike. adrian: yes. monetary policy always has to be forward-looking. a lot of the discussions, some central banks put a specific date prior to which they said we are going to leave things unchanged. we have never done that. we said it is conditional on what we are observing. a key thing we will all be observing of course is that employment is at or near its maximum sustainable employment level. it was at that level prior to covid and we think there is

still surplus and unemployment beyond these levels. so we are doing more work in that space. kathleen: i am sorry. i wanted to ask you about wage pressures in the pipeline because of the tight labor market. adrian: yeah, we certainly are, but it is only in some sectors of the economy. this is a global challenge. the first thing many tell us is labor shortages. yet we know on the other hand there is unemployment. the variances between sectors of the economy and between countries are very large. on aggregate we are saying there is surplus labor. that's in some sectors without doubt. particularly with immigration in new zealand being very constrained, for reasons. we're comfortable you should see wage growth. that's a natural part of the labor market working, and a natural part of the economy picking up wage growth to drive

and attract labor specifically to those sectors. our real challenge is how quickly can labor move. from surplus areas to shortage areas and so on. so we will watch that, but we are not concerned kathleen hays. we are less than half an hour away from the start of trading in japan, south korea and austria. let's turn to sophie for what to watch. sophie: focusing on new zealand you had the kiwi dollar on the back foot after a four-day gain. still set for the first weekly rise as the rbnz opens the door to tightening. ubs says the kiwi dollar's rise is not done yet, with fair value converging around the 75 level,

while the aussie kiwi downside remains attractive for ubs. going into the meeting next week, expecting a more upbeat commentary from australia's central bank. we are seeing downside moves for aussie bonds, falling for the first time in eight days despite the lock down in victoria. ahead of the open in tokyo, checking in on nikkei futures. we are seeing moves to the upside. the yen trading near a seven-week low. 110 in the coming days after this month of activity we have seen. the yen could turned very cheap if inflation rates globally do diverge. we are seeing futures sticking slightly lower here. tokyo securities here. saying any selling will be limited as

that. we also digest the latest data from japan this morning. core cpi for tokyo coming in lower. we do also have the japan jobless rate ticking higher to 2.8%. haidi: the international olympic committee pushed back on comments from senior officials that the tokyo olympics would proceed even if japan's prime minister all for them to be canceled. speculation has intensified this week. for the latest we have our senior editor joining us from tokyo. we're also hearing from the head of the doctors union saying if it goes ahead, we could end up with an olympic variant. so, on the balance are we expecting this to still go ahead? >> all of the noises out of the people who make the decisions are that the games are going to go ahead. the ioc pushed back against reports, that was an interview with dick pound, an outspoken member of the ioc. that report suggested they would

go ahead even if japan, even if suga himself said no to hosting the games. the ioc said all the decisions will we choir all the parties. but japan themselves are certainly saying the games are going to go ahead. there is no noise out of suga or his office that there will be any change. shery: what would be the economic hit if the games get canceled? gearoid: economists are somewhat divided on what the impact would be. bloomberg economics said that the impact could be as much as 1.7 percentage points of growth. but that's based on the idea that a cancellation would be triggered by a deterioration in the virus a situation in japan.

so i think that forecast factors in the idea that assuming things stay the way that they are, the games are going to go ahead. that kind of goes back to another thing that the same member i mentioned of the ioc, dick pound, said in a separate interview also this week, where he said barring armageddon, the games were going to go ahead. shery: our senior editor with the latest on the tokyo olympics. next, capitalizing on diversity in organizations. we discussed steps leaders can take to leverage off distance. martin davidson from the university of virginia is with us. this is bloomberg. ♪ us. this is bloomberg. ♪

vonnie: this is "daybreak asia." malaysia's prime minister is facing renewed pressure to allow parliaments to reconvene. he suspended democracy in january, declaring a state of emergency to curb the spread of covid-19. public anger is growing as the outbreak shows no signs of easing. daily infections have more than doubled since january with record deaths marked thursday.

thailand has open registration to more than 7 million bangkok residence for covid-19 shots as authorities battle the country's deadliest wave of the outbreak. people aged 18 to 59 are now eligible to book appointments either online or in person. a mass vaccination rollout is planned for next month. four former female google employees have won class-action status for a gender pay disparity lawsuit against the tech giant. on behalf of nearly 11,000 other women. a san francisco state judge certified the action. they allege google paid women about $17,000 less per year than men during the same job. a previously described -- they seeked more than $600 million in damages. google called the claim unfounded. 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. shery: for years, u.s. banks

have been under pressure from investors and government to diversify leadership. amid congressional testimony, ceo's of the six largest banks face questions about what they have done in the year since george floyd's death to promote diversity and social justice. we are joined by university of virginia professor martin davidson, who has consulted with many leaders on fortune 500 firms on how to manage diversity. so give us your assessment. how have banks done so far? martin: you know, banks have done, of the time i have been involved, i would give them maybe a c or a c-. the reason being the actual substance of change has been pretty limited. i think what we have seen is when we look at some of the promotions and we see the faces of who is being promoted, they look the same. in fairness, some banks are doing things behind the scenes that will pay off later. but if we are looking at what is going on right now, there is no

reason to be too optimistic. haidi: you have not seen any momentum last couple years either with black lives matter? we have seen more voices. people are becoming louder in asking for the changes, and not to mention any of these changes would take time if you want to develop the pipeline of talent, right? martin: that is exactly right. the pressure to create changes great. that is what needs to happen, and it is good it is happening. but the time for the result, they will be a lag. looking for change immediately is problematic because what we will continue to see is windowdressing. we will continue to see banks finding one person, a black person, woman, hiring them from another bank, and then saying look at what is going on in our place. what really matters is what is going on underneath in terms of developing pipelines. how are banks changing their structures so diversity and inclusion because him -- become

more a part of the dna of their firm. haidi: this is what you talk about when getting numbers through the door, meeting quotas that are being set to have a more diverse workplace makeup. what is it that is missing in terms of breaking down the systemic racism that takes a person that gets through the door to the top? martin: really i think the main thing that comes into play is the headcount, the getting into the door. that is what we can all measure. you can literally count the number of people coming in. what is harder to measure is what is the experience they are having once they are inside the firm that allows them to thrive. what we can look at is who is moving up come how are they getting -- moving up, and how they are getting there. that can come into play. but even the element that create that are missing. for example, incentives to develop people of color and women to move up. are current managers getting

those incentives? more than anything else, what oftentimes gets in the way is culture. culture which we always talk about is something that overwhelms any particular strategy or tactic. if we are used to doing things a certain way, it will take time and attention to change that culture. it will take a reduction of bias in order to move talent. that does not look like the normal demographic, white and male. it will take removal in order to move people up. haidi: which is really difficult when it comes to those invisible barriers when you talk about social networking and business networking. you also mentioned diversity fatigue. employee use saying why do we keep having to talk about representation. how do you account for that? martin: it is really challenging, because this is tough stuff. the whole idea of what happened just over a year ago in the u.s.

with george floyd and the pain that comes from that, it is really occult to take in and continue to confront. the remedy for that really is to respond to the momentary input of energy, the kind we had last year, to make structural change. if we can make changes, if we can make sure that there are, for example, diversity functions, coordinating mechanisms at a firm that allow the firm to stay focused on the kinds of changes and the metrics that allow diversity to change. get data in place and you can ride out this fatigue. shery: we are talking about the organization, but let me take you to the individual as well. i was moderating a panel earlier this week about asian americans overcoming that model minority stereotype. one of the issues that came up is if you do not see someone that looks like you as a leader, then you also don't aspire to be a leader because you really have

not seen it around you. so how much is it also on the individual and the organization in that dynamic? martin: what is really important is that dynamic or role model is human, it is normal. ok? and what i think organizations need to do to respond to that is to make sure that those role models go further. the problem is that typically, the thinking is, well, if we just get someone to sit in the seat at a high level, then we have a role model. and the answer is that is not it. what is needed is for people to see how that happened. how do people rise to that top? how can then begin to say, how might i rise to the top? after that, it becomes very, very difficult for this whole idea of the role model to really come into play. that's why pipeline and ways of developing talent are so important. people in the firm at the lower level have to see the entire path to get to the top. haidi: we saw shareholder

proposals for racial audits filed across wall street firms and other financial institutions during the proxy voting season. very different approaches. citi saying they're reconsidering that proposal, which of course analyzes adverse impact on communities of color. very diamond very outspoken, saying this would only add bureaucracy and bs to the firm's efforts to help communities of color. would they be helpful or not? martin: data helps is the way i think about it. we can debate the best way to collect the data. but the idea that we have information that allows us to act is what is really important. and frankly come any time you do any kind of change, if you really want to change the demographic or the makeup, we need to know what the current state is and what we are expiring to and we have to have a way of tracking it. college audits, call it data -- i don't care what you call it, measure it. haidi: really great to have

university of virginia professor and author of the end of diversity as we know it, martin davidson. really appreciate your time. lots more to come this morning. this is bloomberg. ♪

haidi: chinese online food

delivery giant is likely to be the leg -- the latest big tech company to be pledging further investments in core technology's like logistics. all against the backdrop of beijing's regulatory crackdown on large tech companies. they report first quarter results later on. what are we expecting from them? stephen: they are embroiled the other big tech giants like alibaba and tencent and others in the regulatory crackdown. in april it was announced by the antitrust watchdog they would be under glittery scrutiny, much like ollie -- under regulatory scrutiny, much like alibaba was for its practices, basically choosing merchants to pick their platform over competitors'. so they are under regulatory scrutiny. how that plays out is what investors want to know, because the stock has been absolutely

hammered when it became clear may 2 on be embroiled as well. this stock is down 40%. the executives of this company have not helped themselves because a few weeks ago the ceo was embroiled, or worsened the situation by posting on social media an old poem that is famous for being antiestablishment. of course he withdrew it and said he was talking about competitors, not the chinese government. but many investors said he is criticizing in a veiled way the chinese government and this regulatory crackdown. shery: when it comes to the spending front, what has meituan vowed to do? stephen: meituan was actually one of the first ones to come out and say -- those losses are likely to continue in this most recently completed first quarter.

they were one of the first ones to say, they did not say this exactly, no ceo will say we are going to sacrifice profits, but essentially they are sacrificing profits in the short term to spend in core fundamental technologies the communist party of china, the government wants these big tech company to spend in. in logistics, in the cloud, in ai. you are seeing the autonomous driving delivery units meituan is pushing. we are likely to see a potential doubling of that fourth-quarter loss in this most recently completed first quarter, even though revenue likely recover to those pandemic lows. shery: stephen engle with the latest on meituan. we have the market opens in sydney, seoul and tokyo. stay with us. this is bloomberg. ♪ bloomberg. ♪

shery: hello and welcome to "daybreak: asia." i am shery ahn. sophie: i am sophie kamaruddin in hong kong. haidi: and i am haidi stroud-watts. our top stories this summer, president biden is reportedly said to unveil a $6 trillion budget proposal even as inflation fears where their heads.

japan's jobless rate takes higher on the back of gains in u.s. cyclicals shared by biden's big spending plan. >> i am tom mackenzie at jd logistics headquarters on the day it shares a sector lift in hong kong. the ipo was the second-biggest in the city this year raising more than $3 billion. shery: japan, south korea, and australia have come online. let's turn to sophie. >> japanese stocks bounce back more than 1%, both nikkei225 and topics putting benchmark for a second weekly game. we have the yen trading near a seven-week low as we digest latest data out from japan, tokyo cpi continuing to fall at the jobless rate for april rose to 2.8%. extending waiting for deficient appetite industries today. turning to south korea, the start of trade, because we

heading .5 of 1% set for a second weekly gain. the korean won we have seen on the front for the most part of this week, i made the recovery with president moon jae-in saying there should be more fiscal spending. but futuristic lower after trending higher on thursday as traders are recalibrating. at the bok it says it is preparing for an orderly policy exit, a more cautious tone from its peers. rbnz signaling a rate hike might be on the horizon. that has helped the kiwi set for the first weekly rise although it is on the backflip on this friday. quibi gains -- kiwi gains still on the horizon. the aussie qb dollar --kiwi ahead of the meeting. up .3 of 1% and oil prices are

getting, brent above $69 eyeing that $70 a barrel mark with a crude set for another month again, the fourth 20 rise of this year. in the offshore yuan is had a stellar week as well. cnh back above 637 as we had the pboc cautioning against one-sided expectations, and capital flows to the mainland have felt was the csi 300 to a march after eight four taking with the index at for the best week since the winter new reopened and we are watching earnings due on friday and g date logistics making its debut in hong kong. shery: we have breaking news at the moment, the japanese government is seeking to extend the virus emergency in tokyo and other areas. remember this virus emergency has been extended across the country many different

prefectures across japan as we continue to see the rise of infections as the vaccination rollout is quite slow across the country. we have seen a lot of controversy over the upcoming tokyo olympics in july, whether or not it should be held, japan seeking to extend the virus emergency and tokyo and other areas, breaking at the moment, saying they will extend the emergency through june 20, at five weeks before the tokyo olympics. a cancellation of the olympics would of course i have a direct hit to the economy of more than $16 million, but we have seen more vocal protests across the country for the cancellation of the event as the japanese government again is extending that state of emergency through june 20, five weeks before the tokyo olympics around tokyo and other areas. let's go back to the markets as

we continue to see the japanese yen holding at that seven-week low against the u.s. dollar. our next guest says it continues to be overweight. he oversees opportunities in the philippines. joining us now is ken wong at e springs investment -- east springs investment. the philippines is seen one of its best days and decades, but india as well at a record high. it seems investors are pricing in the reopening of economies and the easing of restrictions, but at the same time we have this news about japan imposing more restrictions. how much of what the virus will do avid investors pricing markets in the region? >> it depends on which marker you are looking at. the reason why we look at this as a good opportunity is it has

underperformed on a day-to-day basis, a one year basis, it has underperformed. there was a lot of concern earlier in the year because it was going through under lockdown. we are seeing the fact that it has come up. they are applying a lot more vaccine shots over the next three to six months and they are buying more vaccine shots, so hopefully by the second half of 2021 we will be seeing a lot more movement within the philippine economy, which should bode well. it is one of the only asian equity markets right now trading one standard deviation below its historical evaluation. shery: a few months ago people seemed so positive about the japanese economy especially given how heavily weighted they are toward a more cyclical and value stocks as well. we are seeing people become gloomy toward japanese equities perhaps because of the rising infection. where do you stand?

>> that will be the situation we continue to monitor closely because a lot of the news right now is on whether the olympics will happen or not, so as a result there is negative sentiment as to what is going on because we are still seeing restriction as to what is going on across japan. with that said and because the fact equity markets have still performed quite well in the sense it has been one of the better performers in asia on a year-to-year basis, investors are more skeptical to see what is going to happen during the second half of the year, because the fact that japan as a ways to go in terms of getting its country vaccinated. haidi: i want to get to your calls on china because you are still positive in asia. look at this chart. chinese stocks heading for the best week so far, back to the highest level since march. having said that does the breath

of the rally concern you because about 25% of these gains are down to three liquor stocks, so how much of a run is there for asia? >> what we have been seeing over the past three or four months has been a cyclical turnaround, so we have seen a lot of materials, a lot of the banking stocks doing quite well, so as a result we are seeing this trend, but more recently we are seeing more push toward consumer staples, potentially some hardware tax are coming back because valuations looking more attractive. well it is still training below its historical average it is not trading at much higher from a historical average standpoint so investors are looking at markets again especially given the fact valuations were much higher during january of this year. haidi: you talk about tech,

cross property and financials. we are seeing regulatory overhang, the clampdown continuing or resuming in beijing now that the pandemic recovery is underway. is that a risk you are concerned about? >> it is a bit of a risk. it is one of the unknowns, you cannot forecasted what the central government will be doing in terms of trying to cool down potentially any overheating economy, but the one thing we also want to note is well first quarter gdp was very good on a year by year basis if we compare first quarter gdp growth compared to its 2019 it was only up 5%, so it is one of the situations where well economic growth was robust you compared to the year before that it was not strong so the central government will be closely monitoring economic activities for at least the next two quarters. shery: let me ask you about

india. markets continue to rally with the nifty at a market high and this pricing and potential easing of restrictions but infections continue to be pretty bad there. >> true. it is also one of the situations where i think people are investing for what is potential in the second half. at the number of infections are still at elevated levels but they have come down from its recent peak. a lot of times investors are focusing on what happened before and what is likely to happen in the next few months. there is expectation in the second half of the year and will gradually open. we are expecting the government to raised its fiscal deficit this year as well to push, drive economic growth. we know for a fact that if you look at overall corporate earnings growth and percent of gdp it was fairly strong for fiscal year 2021 and potentially over the next fiscal years as well corporate earnings growth

will be a growing portion of its country's overall gdp so this is what the market is looking for, given the fact that over the past years we have not seen overall corporate earnings growth as a percentage of overall gdp rising above the 1%, 2% threshold. by fiscal year 2023 that number could actually rise to about 5% of its overall gdp levels. haidi: ken wong, always great to have you with us. let's get to vonnie quinn with first world headlines. vonnie: the european union and japan it is joint statement stressing the importance of peace and stability in the taiwan strait following a virtual meeting between the japanese prime minister, the european commission president and the european council chief. a similar statement was issued after from ministers hook up -- prime minister suga met with

president biden. -- first identified in india means it is too soon to see whether england will move to a full reopening on june 21 as planned. hancox has a formal assessment will be published -- before june 14 and remaining restrictions only be lifted when it is safe to do so. the u.k. account shows infections arriving -- it. germany is the most recent country to seek inoculations for children 12 and older. after meeting state lawmakers chancellor merkel said it should be approved for adolescents in the coming days. she's dressed it would be voluntary and would not impacted back -- not impact participation. -- suspended democracy in january declaring a state of emergency

to curb the spread of covid-19 the public anger is growing after no signs are sort of easing. daily infections have doubled since january. the pace of vaccinations have failed to make up. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery:'s our guest joins us to discuss china supply chain and logistic outlooks. up next, the heads of six of the biggest banks keep their in the face of another grilling from lawmakers. the details i had. -- ahead. this is bloomberg. ♪

shery: wall street ceos kept their cool in the face of pointed questions for mel's

committee lawmakers on thursday discussing everything from overdraft penalties to try to's increasing economic dominance to the challenges facing the financial industry. >> what do you see as the greatest threat to our financial system right now? enter your company as well? >> public policy not being properly executed in the united states of america, which means not being able to take leadership roles. >> ok, what does that mean exactly? >> i think we have done public policy not particularly well. infrastructure, integration, health care, taxation, we have stifled the formation of small business. if we do not get our academic act together we will not be a leader in 20 years. >> mr. gorman. shery: our guest is on the line with the details. give us the highlights of the final day of the congressional hearing. >> that exchange we just heard was definitely one of the

highlights. the ceo asked what is the biggest risk facing there, he talked about cyber and how big of a deal that is and how much money they are spending on that, so that was definitely a highlight. honestly a lot of lawmakers will impress these things on a business and growth operations in china, what they were going to use to address some of the lawmakers. haidi: what about the questioning on diversity efforts ? >> there were a lot of questions around trying to bring in or under banked americans. the big thing we heard about today was overdraft fees and help those might prevent folks from getting bank accounts. what are banks doing, and we also heard a lot about banks

doing more independent audits of their existing diversity efforts in the hopes that might encourage more action on this front. haidi: our finance reporter in new york. hong kong will approve a sweeping overall of the city's elections barring its usual pro-democracy ritual. this. -- this is bloomberg. ♪

>> i grew up listening and understanding everything from design, and that made our opportunity to work at htc and learning everything from product management. i have been involved in shipping.

i would say the next generation is understanding the implications of that. haidi: you can catch more from that interview on generation x, our new segment that takes a look at how prominent families and business leaders are attempting for the future. it airs every monday at 7:40 hong kong time on "daybreak: asia. hong kong's lawmakers approved a sweeping overhaul of city's elections which means all candidates must be vetted by a review committee and approved by national security officials. it comes on the same day the police banned the pro-democracy vigil for a second year. our asia government reporter joins us now. anyone who has been following the story would not be surprised in the latest developments. this is just the new tightening over political freedoms in hong kong. >> exactly, with the election changes that came down from china originally passed by

china's parliament, and rubberstamped parliament in march, this finishes off in a sense of democratic elections in hong kong. you need to be vetted and approved by china appointed lawmakers and the committee before you run in hong kong, so basically anyone recognizable as a pro-democracy figure in hong kong over the last few years is never going to be able to run again, and with june 4, that very important memorial in hong kong being banned a second year at a row, a lot of people are thinking if it was not covid they would ban it under the national security law at this is not just banding june 4 for public health reasons. that is the cover but a lot of activists are saying this is

hong kong. trying to permanently ban any protest. shery: what are democracy activist doing right now? is there anything at all they can do? >> on june 4, in some ways there is the formal gathering meant to happen in victoria park, a prominent part in hong kong where it is normally held. there are saying if you show up there you are going to get arrested for sure, so trying to find some other way of commemorating the day, whether that is going out on street corners and holding a candle or dressing up and black or doing other things in public where you cannot necessarily be targeted by police. that is the sort of thing people are expecting on june 4 that you might have more creative,

dispersed displays of dissent but they will be extremely pared down to -- compared to what the city is seen in the past. haidi: the u.s. commerce secretary says the u.s. could build six new semiconductor plans to help combat the global chip shortage. we spoke with emily chang earlier. >> it is an economic security problem, and national security problem and i have to say thank you to everyone we have been engaged with. they have been great partners and this will require public-private partnership. government cannot fix this problem on our own and the private sector is to be there, and i think they will be. >> gm just announced it is restarting production at several clients that have been idle due to the chip shortage. you have covid cases rising in taiwan, at the heart of the semiconductor industry. could that impact supply and

will the u.s. do anything to help? >> you put your finger on a very important problem, which is that we are heavily dependent on the company based in taiwan for a high percentage of our semi conductors, which is exactly why we need to make semi conductors in america. it would be our plan to build another six or seven manufacturing operations in america over time so that we will not be so vulnerable to relying overly on one company or one country. >> speaking of countries, obviously improving infrastructure, improving supply chains helps to boost your competitiveness against china. the administration's been reviewing its approach to china. when will we hear more about the

findings and strategy there? >> i would say this is an ongoing process more than a process with the particular announcement or deadline, but we are doing it now. we are talking about semi conductors. that is core to our strategy as it relates to china. we need to invest in america. the president's job's plan is all about competing with china, improve our education system, our infrastructure, investing in manufacturing. the way to compete with china is to run faster, invest in america, and in terms of defense we have not slowed down. in my department we have continued to add chinese companies to the entities list, we have subpoenaed a number of chinese companies who extract information from them and we will do what we need to do to protect american industry. shery: the u.s. secretary of commerce speaking with emily chang. here is now a check of the

latest business flash headlines. hbc's robust profits for the current quarter indicating consumers are still spending on laptops in the room were dear well companies upgrade hardware ahead of of his riveting spirit it sees third quarter profits of anyone since to $.85 a share beating estimates of $.75. the cost to move goods it is shipping intended to europe from asia shot up $10,000 for the first time in a record going back to 2011 according to the world container index. the rate for a 40 foot container from shanghai to rotterdam is up 3.1% from last week and 485% from one year ago. amazon's mgm takeover is parking fresh criticism about the growing reach of u.s. tech giants. lawmakers as well as antitrust advocates say it is the latest example of how the industry's biggest players are stepping up

companies even as they face a flurry of antitrust lawsuits. amazon announced the deal a day after being sued by the attorney general for anticompetitive product. we discussed at the rally in the chinese yuan this week and what in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

shery: here are the first word headlines. president biden reportedly set to unveil a budget on friday that will hike federal spending in the coming fiscal year. the new york times said the proposal includes deficits of more than 1.32 in dollars each year over the next decade with federal debt rising to 117% of gdp. the president plans to meet republicans on next week on his current infrastructure spending plan.

and moving forward on a wide ranging bill aimed at bolstering u.s. economic competitiveness and confronting china's rise. the bipartisan plan calls for more than $150 billion to be pumped into r&d and u.s. semiconductor manufacturing. it has measures at target china. the procedural vote is the first of two for the senate takes a final decision. china sinopharm has published a long awaited vaccine study in a peer-reviewed journal showing detailed findings from late stage trials. the article shows two vaccines prevented affection -- infection and 73% and 78%. in line with what the state on drug maker previously announced. twitters calling a visit by indian police to its office of form of intimidation. the social network has clashed with the government on several

fronts, twitter says it's concern about recent government action including rules and regulations it says inhibits free, open, public conversation. a group of former google employees with a lawsuit against the tech giant, on behalf of nearly 11,000 women, the women allege google paid female staff about $17,000 less per year than men doing the same job. a previously disclosed amount showed they seek more than 600 moon dollars in damages. google calls the claims unfounded. those were your first word headlines. haidi: let's get a check of the markets with sophie cameroon in hong kong. sophie: we're seeing guidance led in asia -- sophie kamaruddin. we're seeing most sectors with a

value theme coming through, after the session we saw on wall street. materials on the rise, bhp jumping 2% on more -- or more this morning. and the a6 higher by 1% this morning. looking little changed, bond buying in japan has extends the state of emergency. and bonds under pressure, both number and commonwealth bank expected the rba will turn less dove edge as the risk rises more. rbnz tightening operations and

ahead of the long weekend in the u.s., were seeing 10-year treasury yield extending up this morning. pulling up the chart on the terminal, as were seeing the pickup and u.s. yields, that's push the you gap with china to a 15 month stretch. bloomberg intelligence says [indiscernible] shery: let's turn to the yuan's relentless rally this week. against a basket of trading partners. let's crossover to sephia, or authorities getting more comfortable with the yuan? >> that's a very good question.

everyone was kind of on the alert for any signal from the pboc. we got that late-night statement from the central bank saying the currency wouldn't be used to reduce inflationary pressure. while analyst have been calling the ecb of weapon or a tool for that. saying the only way it is going right now is up. shery: the flexibility has long

market-driven fundamentals. >> exactly. there are signs that beijing is relaxing its grips -- grip on the nation's currency. xi jinping's plan to liberalize the currency market, this is still china. the statement came out last night and the central bank met with major forex players.

essentially telling the market, don't have a strong move in either direction. also saying the currency would not be in a depreciation narrative. it's really saying let's have a two-way flow. what are we seeing in terms of analyst calls? is it a more bullish sentiment? >> we had analyst calling for 6.2, which would be like the level before the devaluation in 2016. earlier this year, one analyst calling for 6. what will be interesting is to see whether it changes. the since were getting from analyst this morning doesn't change the broader direction of the one. it is an attractive market. the pace of appreciation might slow. it will be interesting to see this morning at 9:15, i'm talking to my colleagues and the idea is that the pboc will want to keep it as neutral and boring and in line with expectations as

possible to hone in on the fact that it's not managing the currency, is just managing expectations of the currency. haidi: coming up next on "bloomberg daybreak: asia." the second-biggest hong kong ipo this year. we will be live on the ground. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines this hour. if the company plans to go public, filings show he was awarded shares worth more than $245 million. it's expected to merge with the provider. the extra stock was awarded in february. one investing start of agreed to go public and will merge with a firm in a transaction that includes 450 moon dollars. it was founded in 2014 after

investing in products for relatively low monthly fees. and plan to go public in india's largest debut ever. the payment provider is aiming to raise about $3 billion later this year. it's targeting a $30 billion valuation. morgan stanley is the leading contender for that offering. shery: jb logistics indicating a 30% pop at the open. the company raise more than $3 million in its ipo. it's a second-biggest this year in the city. our china correspondent tom mackenzie is at the company's headquarters in beijing. tell us more about the demand for the listing that we saw.

tom: they're priced it at the lower end of the range, about $40 hong kong per share. we saw a lot of demand, previous jump of $.30. it was selling for about $50 hong kong per share. they are gearing up for the first day of trade and are optimistic it was oversubscribed by about 700%. january and february very strong in terms of ipo's. but the sentiment has started to cool. so what happens today with jd logistics, could be significant for the broader hong kong market. haidi: in terms of the priorities going forward, where is the money going and what are they looking to address? tom: as with so many sectors here in china, logistics are

incredibly competitive. it's also very fragmented. jd ledoux sticks -- logistics, the parent company is a massive company that rivals alibaba. they want to diversify and have more clients. that is a big focus for them as well. they actually have less than 3% of the market share. part of the way to compete they think is by building out there warehouses, their transport and delivery, and also technology. they continue to invest heavily in software. and the overseas expansion part of the pie as well is a strong focus on europe where they're starting to see opportunities. haidi: tom mackenzie in beijing. our next guest says she expects

more ipo's for china specific companies this year. she says due to strong demand and policy support. she joins us now. great to have you with us. tell me the reasons why you are optimistic on this sector. >> we focused on the logistics sector for two reasons. industrial upgrading, it used to be fragmented and gdp is very high, but there is the interconnection of different devices also. industrial upgrading, like

automobile and energy will play a more crucial role in china's economic development. so the popularity of china's logistics is going to rise. haidi: one of their ambitions is to have a more integrated supply chain as you alluded to. does that give them a big advantage when it comes to market share? >> it's involved in housing and delivery at the same time. it will be did -- when you purchase something it will be delivered from a local warehouse. so people can get things in a timely manner. along with the increasing of the middle class in china, people tend to acquire more timely service.

shery: why did it price in the bottom half of the market range? >> they ran from a fulfillment model because jd logistics integrates a warehouse delivery model. the price i think should be higher than the fulfillment model. in china, it is transported from factories and it requires [indiscernible] usually within 24 hours. shery: i was referring more to the ipo itself. as opposed to other public offerings we've seen in the

past, they've decided to price in the bottom half of their range. i wonder what message this will send to other companies looking to list in hong kong. >> that's a good question. i think the actual sentiment is quite strong. in my view, there will be more logistic companies listing in asia as well because the logistic sector, as i just mentioned, has a really promising future. but i think the jd logistics valuation, for some companies they have a good track record and the valuation will still be reasonable. shery: are we expecting to see more companies from this sector? how promising is the logistics industry in china?

>> in china we have issued a report about these sectors and delivery markets and airline logistics as well. i think there will be more ipo's in the future. shery: it was great having you on, and don't forget, jd logistics will debut in just under an hour. we will follow that debut as it happens. don't miss our interview with the ceo at 9:30 a.m. in hong kong. next we will have more "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: -- shery: salesforce reported earnings that topped estimates, driving shares up about 5% in after-hours trading. we spoke with the salesforce president and coo ride taylor about the report. >> i think we are executing as well as we ever have if you look at the numbers. haidi: do you think it is indicative of a lack of organic growth of the company? where you -- where are you

seeing the strengths and weaknesses across the business? >> our organic business has never been stronger. were up 23% year-over-year. we raised our fiscal 22 guidance $26 billion, which is 22%, all on the strength of our organic business. new look across our portfolio you see incredible demand from companies like honeywell and others. we are excited about not only the strength of our organic business but also the opportunity to bring together a stock which is really the digital hq for this all digital world and we think the opportunity is just incredible. shery: what impact will the reopening from the pandemic lockdown have on your business? >> just over the past couple of

weeks we announced the reopening of salesforce in london and san francisco. we are seeing this across our customer base. first i think we are just seeing acceleration that is reflective of the demand. as the vaccine becomes more effective, places like the united states, u.k. and europe, really seeing caseloads going down, economies are reopening, industries are seeing growth again. the more interesting question is, a lot of these companies have learned a new way of operating their business. people are selling over zoom rather than getting over airplanes. we are not going back. the interesting question is, what is this new way to work?

shery: so is the growth coming from new customers or existing customers? >> all of the above. there were no weaknesses in our quarter. over 120% year-over-year. the deals were made up of more than -- companies investing into income a digital customer transformations. we are seeing this in every segment and every market. definitely the strongest quarter in our company's history. haidi: where are you seeing the downside when it comes to country still struggling with the virus like india and japan? company still -- country still failing to get a grip over it like brazil. >> our hearts go out to india, to brazil, the resurgence in

some parts of asia. the pandemic is not over. the recovery is happening in uneven ways. you have places like my hometown of san francisco that is recovering rapidly. we have a number of employees in india that are horribly impacted by the variants. everyone in our customer base is -- is more important than ever that we recognize that our business can do well and also do good. i'm very proud that we've shipped to airplanes of oxygen to help do our part in the recovery. a huge part of the salesforce business, i truly believe business is the greatest platform for changing the world. and in a pandemic, it works more than ever. haidi: we're counting down to the start of trading this friday

and mainland china and hong kong. >> we're watching for more pboc commentary. the uncial rate has top consensus forecast with several bullish analysts seeing an increase ahead. and we're seeing the flattening of the china curve. calling for zero-tolerance toward manipulation. it has sent ripples through base metals. td saying industrial metal prices could firm up. and saying the fundamental path for key commodities like copper and oil higher in the second half.

it's a response to the tight demand we are seeing. haidi: that's it for "bloomberg daybreak: asia." will look ahead to the start of trading in hong kong, shanghai, and shenzhen. jd logistics will be making its debut in hong kong and we will hear from the ceo at 9:30 a.m. in hong kong. you don't want to miss that conversation. this is bloomberg. ♪

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>> is 9:00 a.m. in beijing and shanghai. welcome, i'm tom kinsey. it's "bloomberg markets: china open." >> let's get your top stories today. pboc sending a warning shot on the chinese currency, saying the exchange rate cannot be used as a tool to offset