haidi: a very good morning. i'm haidi stroud-watts in sydney. counting down to the major market open. shery: i'm shery ahn in new york. welcome to "bloomberg daybreak: asia." asian traders set for a cautious end to the week. wall street in a volatile session. chinese adr ends with a deep loss. president biden and xi set to hold their first call since russia's invasion of ukraine.

where beijing stands on the war in focus, and an avoided default, with dollar bond interest payments cleared. haidi: let's get you started with the start of trading at the beginning of the staggered open. modest upside. the budget will be in focus today. the government hailing the strength of the economic recovery and focus to reducing debt burdens that have been accumulated over the past couple of years. waiting to hear from the treasurer as we get ready for the delivery of the budget. also upside when it comes to trading in new zealand. .10% higher. kiwi and aussie dollar are in focus. leading the gains. looking at the presumption of the trend of the multiweek rally for the kiwi and aussie. getting support from energy prices, with oil jumping again overnight. sustaining most of those gains into the asian open. russia casting doubt on the

prospects of the current vstoxx. the aussie dollar -- peace talks. the aussie dollar planning to grow. a muted session this week. a pretty muted session when it comes to bond trading. nikkei futures looking like we will be cautious going into the bank of japan decision. no decision expected from the boj on policy. very curious to see what the governor says about the inflation outlook. shery: not muted when it comes to u.s. futures. the slide of about .5%. the s&p 500's biggest three-day rally since november of 2020. stockmarkets were fluctuating through the session. we had optimism on reports russia may not be defaulting on bond payments. we are watering treasury futures -- we are watching treasury futures. 10 year yield down to about 217. the brief steepening of the

yield curve as we had new corporate bonds priced in the afternoon. in the asian session, wti rebounding. holding at the $100 a barrel level. this as we heard from russia we are not seeing as much progress on the ukraine talks. let's delve into this. pentagon officials say president putin is likely to make nuclear threats against western asia if the war in frame drags on. that coming ahead of a call between joe biden and president xi jinping. we hear from officials beijing might move towards backing the kremlin. let's get details from josh wingrove, and coanchor yvonne man. what are we expecting from china? >> a very closely watched call. press secretary jen psaki

warning of consequences on china from the u.s. if there is too much on this -- they are too much on the side of russia in ukraine. the backdrop is whether china will provide supplies, in particular, arms, to russia as part of the ongoing invasion. the white house has not really detailed what the consequences might be. china's government saying it doesn't want to be impacted, should it be impacted by the broad ranging sanctions the west has put on on russia in response to way they see as the brazen inflation. there is a lot to read from this call, but the core thing is whether joe biden comes out of this -- from the white house perspective -- whether joe biden comes out of this casting china as siding with aiding putin.

that can signal potential for further escalations in sanctions or whatnot. on the flipside, if they come out with some positive notes, that can signal further isolations of putin, and a hopes of a cease-fire can be closer. it really depends on china. that is with the white house is saying. it is up to china to decide what side it wants to be on. but it is not clear that china views it that way. haidi: markets are bringing us over -- russia apparently making good on bond payments. what are we seeing? >> it might be wise to not breathe an entire sigh of relief. we know jp morgan processed bond payments earlier and passed on that money to citi. the next step would be citi distribute the money to bondholders. that is a very optimistic sign. the payment is going ahead --

that is an optimistic sign the payment is going ahead. s&p downgraded russia's longform currency debt rating. it cited investors did not receive coupon payments on the russian government's dollar-denominated euro bond when the payment was due on march 16. and it was technical difficulties related to sanctions. i think the picture is unclear at the moment as to whether money is hit. but when it comes to the procedural incremental steps, where jp morgan gets the money, citi, the back office roles, they were thrust into the spotlight today and washed around the world. shery: and that was what boosted stockmarkets in the u.s. in the first place. the sigh of relief that could be a bit premature. but not for chinese stocks. that rally did not translate to

chinese abr's. yvonne: the sigh of relief we saw, the two days of stunning relief seemed to fizzle out in the u.s. we will see how markets look in about 2.5 hours. the golden dragon fell as much as 8%, and ended up climbing back. ended about 4% lower. still a lot of questions. have we actually reached a policy bottom? is beijing going to deliver on promises of boosting growth and ending the crackdowns? the likes of morgan stanley, one of the most bearish when it comes to chinese stocks, taking the constructive comments positively -- but no rush to turn out right bullish on chinese stocks just yet. you hear from the likes of credit suisse, upgrading chinese equities to overweight, saying there is attractive potential upside as they remain depressed. even with the gains, the hang

seng tech index, more than 50% off of the peaks we saw last year. 65 percent off of the peak taking a look at the nasdaq golden dragon. policy shift is what we are looking for. concrete steps. we can hear something as soon as monday. expecting it could be lowered next week. also, as we see the state council meetings in the past, whether 2018 or last year, they were usually followed by china cutting rates. whether a form of rrr cuts or a signal of cuts to come. still issues, whether delisting concerns, the political backlash with beijing and war ties with russia. the potential capital as the fed lays out its hike impasse. and covid zero, dynamic zero, what does it mean for china, too? haidi: yvonne man in taipei.

josh wingrove and our finance editor with a roundup of our top stories. let's get you to su keenan with our first word headlines. su: starting with chinese foreign ministry. endorsed remarks made by the envoy to ukraine. saying beijing is a friend to kyiv and would never attack the country. the comments appeared to distance china from russia's invasion, but the foreign ministry failed to classify it. it means beijing -- failed to classify it will guarantee beijing will not provide aid to moscow. the metals exchange will allow price moves of up to 12% in a nickel after it plunged by the maximum for a second day. prices dropped by the previous 8% limit on thursday after another whip see start delayed the open. futures have dropped 58% from highs reached on march 8. taiwan's central bank raised its

key interest rate by the most in 2007. lifting its 25 basis points to contain rising inflation. it was taiwan's first rate hike since 2011. . the first time it changed rates since 2020, when it made a cut at the start of the pandemic. asia's central bank held its policy as expected, keeping it at a record low since the last cut in february. peru's former president will be freed from jail, where he was serving 25 years for human rights violations. a constitutional court approves the release, restoring a humanitarian pardon granted in 2017. he was jailed in 2007 for atrocities committed during a war with rebels in the 1990's. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haidi: we are watching star

entertainment this morning. currently hitting a 52-week low. quite a bit of downside when it comes to some of the evidence being delivered when it comes to the inquiry into star entertainment that has just begun. evidence suggesting star group hid millions of dollars in gaming transactions from banks to help highrollers gamble. chinese credit card actions to 900 australian dollars that were allegedly disguised as hotel expenses. the allegations suggested the group lied to the banks to try and conceal this information. this coming out of the first public hearings and the inquiry looking into the star sydney casino license. we have been hearing from the chief financial officer when it comes to these transactions between china union pay.

these transactions back in 2019. shery: still ahead, an ms report revealed women are still far less in the general workforce than their male counterparts. we will discuss it later. a private wealth advisor says raising rates too fast can provide the biggest risk for the markets. more on that next. this is bloomberg. ♪

>> more or less, the bond market and stock market are pricing a magical scenario. the fed tightens not that much, it doesn't kill expansion, because prices are doing what they're doing, and inflation comes back. you look at history, that looks unlikely. it really echoes what happened in 1973. shery: from bridgewater on the environment. let's look at how markets are trading. u.s. futures under pressure. this after a rally in the s&p

500 in the new york session. the biggest three-day rally since november of 2020. we saw significant volatility. optimism about russia not defaulting sending stocks higher . as we see in the asian session, futures are not extending the gains. treasury futures watched closely after they ended mixed in new york. the 10 year yield down to about the 217 level. technology stocks have tumbled into a bear market in anticipation of higher interest rates from the fed. our next guest says the sector represents a great buying opportunity. nancy daoud joins us now. seems jp morgan agrees with your calls. they can be near the finish line. this is his quote saying the correction in bubble sectors is

likely finished and geopolitical risk will start abating in a few weeks time. what do you think? >> i would believe the technology sector is just beginning. certainly during the pandemic, it flourished dramatically. since november, it has taken such a beating that it is a great buying opportunity. unless you think technology is dead, maybe you can get away from it. i don't think it is dead at all. there is so much more to go. shery: where are you positioning the fed for the rest of the year? if we see more rate hikes, and yields continuing to rise, wouldn't that hurt the really highly valued stocks? >> i think the fed has a very difficult job to do. it is a tricky balance for them to taper the support that came from the pandemic, and also to

raise interest rates thoughtfully and prudently over a stretch of time as opposed to too fast and too much. we are hoping the fed will have that playbook already. we have been through inflation before, much worse than today and what we are experiencing now. and we hope they will continue to do that properly and methodically so it doesn't hurt what is going on. corporate profits are very strong. household incomes are very high. although we are feeling the pain of the inflation, it hasn't changed anyone's life drastically yet. haidi: what are you liking in this environment? >> with every crisis, there is always an opportunity. the sectors in addition to technology are commodities, material, anything with pricing power will do very well.

things will continue flourishing in this environment. there's always an opportunity to buy in this market. no matter what is going on. even with all of the uncertainty and volatility. there's always an opportunity. haidi: what about the role in bonds in a balances portfolio -- balanced portfolio? >> fixed income is always a good diversifier. it balances and mitigates the volatility, especially during times like these. at some point, it could be a great income producer. there are many different ways you can use the fixed income portfolio. it depends on the duration. we have to be careful with the duration with rising interest rates. otherwise, it is a great diversifier and it can prevent all of this extreme volatility

so investors don't feel they are on a roller coaster ride. shery: does the level of the dollar factor into your assessment of the portfolio? >> especially of course, it would come into play. especially with anything outside of the u.s.. we are veering away from it at this time. i think the u.s. is a much better bet. but of course, the dollar is very strong. it provides an opportunity in emerging markets. i'm in the business of meeting clients' long-term goals. speculation did not come into play too much. i feel comfortable sticking with what i think is more predictable, even though nothing is unpredictable. u.s. equities are probably my choice. haidi: ameriprise financial services wealth advisor, nancy daoud. you can get a roundup of the stories in today's edition of

"daybreak." it is also available on the mobile in the bloomberg anywhere app. customize those settings to get the news on the industries and assets you care about. this is bloomberg. ♪

haidi: let's get a check of commodities. prices roaring back after what seems to be limited progress when it comes to these talks between ukraine and russia. we see the rally when it comes to wti. trading in a new york into the asian session. european natural gas prices rising with declining russian

flows to germany. gas futures seeing an upside. 2.5% higher after we saw the rise with russian pipeline shipments to germany stoking the potential supply disruption speculations amid the ongoing war in ukraine. benchmark futures surging by as much as 11%. pulling back from some of those gains. we do see flows from russia via the direct nord stream one link falling by 1% on thursday. continuing to track every aspect of the global supply chain crunch. the london metal exchange is boosting nickel trading to 12% after futures plunged by the maximum allowed for a second day. more on that story later this hour. grain exports from russia slowing amid fallout from the war in ukraine. a geneva-based provider estimating three exporters in russia versus 220 in the same

period of last year. china is ramping up corn purchases from the u.s. to make up for shortfalls from ukraine. data showing the top importer skipped up to hundred thousand electric ton -- metric tons of american corn. shery: the most china has purchased since december. it is notable, since they have been depending heavily on supplies from ukraine. racing was also the leading buyer of u.s. soybeans in the last week. picking up more than 800,000 tons. bloomberg terminal users can read more about the stories in our newsletter. here's a quick check of the latest business flash headlines. gamestop posted a surprised earnings miss with an adjusted loss of $1.86 a share. analysts expected $.84. the company revealed more details about their new nft

marketplace, aiming to launch by the end of the second quarter. gamestop, which was at the center of the meme stock frenzy has been criticized for lack of business strategy. fedex has quarterly profits missed estimates, despite a sales beat. the company is feeling the impact of rising costs from a u.s. labor shortage and lower than expected package volume. both factors dragged on games from increases. a profit boost and supply chain issues pushed more freight to the air. china's largest insurer by market value saw net income fall 29% to $16 billion last year. the company's performance was dragged down by impairments in the china fortune land development and slumping new business value at its life insurance arm, which generates most of its revenue.

toyota with a monthly average of about 800,000 vehicles globally in the april to june quarter. up from a year earlier, but short of their plan to make up for lost production due to covid and chip shortages. two toyota said its manufacturing situation was at its limit and announced it would cut output. haidi: take a look at the future when it comes to fx. the dollar fighting for a second day as we see the advance in stocks for the worst performance in nearly a year. some of the risk of sensitive currencies leading the way across the complex. the aussie dollar had risen the most, 1.2 percent. further upside when it comes to the resumption of the multiweek rally for the kiwi and aussie dollar. oil jumping again. russia casting doubt on the progress over the recent peace talks with ukraine. we are also watching the euro-dollar situation holdings

steady. the yen falling to the six-year low. the bank of japan decision, seymour volatility. more on the boj decision. this is bloomberg. ♪ as a small business owner, your bottom line is always top of mind. so start saving with comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. so boost your bottom line by switching today. get the new samsung galaxy s22 series on comcast business mobile and for a limited time save up to $750 on a new samsung device with eligible trade-in.

shery: waiting for japan's cpi numbers. we expect the national headline number. dropping year on year. 9% for the months of february. it is about in line with estimations. takeout food and energy, poor core cpi as a contraction of 1%. in line with expectations for the contraction easing a little bit in the coming months. we expect the core cpi numbers that have yet to drop. that is the one the boj watches

very closely. it is still expected to remain far away from the 2% inflation target. this as we see higher food and energy prices, cost push inflation really pronounced in japan. despite the fact japan has suffered from very low inflationary pressures for quite a while. we are getting the course the up -- core cpi numbers. growth of .6%. a slightly faster acceleration than was expected. acceleration from the previous month. .6% growth for core cpi. for japan as we continue to see higher food and energy prices. far away from the 2% inflation target. this as we see the japanese yen holding at around the 100 1852 level, a little bit of a rebound.

but we have seen it hang around the lowest level in six years against the u.s. dollar as we see the divergence in monetary policy for the federal reserve. all of these issues at play when we get the boj policy decision in less than four hours. our global economics and policy editor is here with more. and we see slightly accelerated inflation in the core number. how will this factor into the boj's decision? kathleen: the boj not expecting changes. slightly negative key rate. but they are expected to focus on the outlook. right now, inflation is expected to overall -- depending on what measure you look at, it is supposed to rise. the big driver of energy prices. food prices have been week.

the cpi, you see it a big stronger -- a bit stronger. the other thing for the boj, they have had third-quarter growth that was negative. that is a lot because of the virus. second-quarter growth was positive. fourth quarter, virus is a problem. but pushing up energy prices. it may boost some inflation measures. but higher inflation in japan is something that will actually hurt spending and potentially weaken the economy. sources familiar tell our bloomberg economics team that boj sees cpi driven by the oil price. that increase is an unwelcome burden on the economy. we will probably also hear something about the yen. it has been weakening. the fed moving in one direction.

you can see the dollar-yen up to 120. this is for the longest time. the boj seemed to welcome a weakening yen because it helped exporters with import prices for those inflation numbers trying to get up to 2%. making it in the speed -- strength and the speed of the yen's weakness is something when he speaks at the press conference at the decision, he will be careful to speak on that and the weakness of the yen and what it means for the economy. haidi: with all of the geopolitics and uncertainty, it is hard to ignore. look at the decisions from the boe and central-bank in taiwan. >> very different levels. if you look at inflation in the u.k., 5.5% year-over-year. as the bank of england rates is

key rates by 25 basis points, 0.75% back to the pre-pandemic level, third consecutive rate increase in a row, the bank of england also says they can see the inflation rate driven by the u.k. come more supply disruptions. 8% in the second quarter. were really cut the years and eyes of the market, is they talked about how it would be something weighing on them, saying we would materially a problem for the economy. in other words, the growth in inflation and prices hurts the consumer. that is something that took a little steam if we are not worried about inflation from a price standpoint. maybe there will go slower in terms of growth concern. andrew bailey said the rate hike is likely. he said it might be appropriate. that is when traders who trade

the guilt futures and bank of england futures took the june rate hike, 50 basis point hike out of the market. the dovish hike from the boe. very interesting. they raise key rates. they raised it twice as much. 0.2 five. supposed to raise it by 0.125. at any rate, the inflation forecast brought inflation up to 2.4%. they saw it at what point -- 1.6%. something they are concerned about. on top of the commodity price surge and fed tightening, they decided it was time to move. first rate hike since 2011. haidi: kathleen hays. let's get you to su keenan with the first word headlines. su: starting with taiwan's

central bank, raising the key interest rate by the most since 2007. 25 basis points to contain rising inflation. taiwan's first rate hike since 2011. the first time it changed rates since early 2020. it made a cut at the start of the pandemic. indonesians central-bank health policy at expected, with the last cut back in february. president biden and xi set to hold their first call since russia's invasion of ukraine friday. officials struggled to discern china's position on the war. there are concerns china can help moscow evade sanctions or provide weapons. also discussing competition between china and the u.s. the u.s. warning vladimir putin will threaten to use nuclear weapons if russia's invasion of ukraine drags on. officials say the war is threatening moscow's military manpower and weapons arsenal. he could use the threat to project russian strength.

the kremlin repeated reports of major progress and cease-fire talks with ukraine, blaming kyiv for slowing negotiations. jp morgan has process interest payments on dollar bonds issued are the russian government and sends money to citigroup. jp morgan received approval from the u.s. authorities to send the payment to city, and it can put a technical default off of the table. questions remain about corporate debt. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: plenty more to come. stay with us. this is bloomberg.

>> we are still waiting for confirmation that the holders of the dollar bonds with these coupons are receiving those. it is a very complex process. and until we receive the coupons, and if there is a failure to receive coupons, there is a second issue.

because of the sanctions, holders of these dollar bonds won't receive dollars, they will receive rubles. even if they are the same valuation, that is not what they signed up for. >> as rates go up, the tide goes out and we will see who will be swimming naked. a lot of countries will have difficulty making payments if they are foreclosed from capital markets. shery: former elliott manager senior portfolio manager jay newman on russia's bond default challenges. ukraine's former finance minister said getting food to cities under see remains a key issue and warns of ukrainian farmers are unable to plant this season, it can cause a serious global food shortage. natalie spoke to bloomberg earlier. >> i don't think it is the issue of sufficient stocks. the challenge is food security.

cities that are being besieged. there's no way to get food into the cities. those who are still functional have trouble getting bakeries to function. taking those stocks and translating for that, i think it is usable food. with regard to the international community, that is different. everything depends on whether or not farmers are able and willing to farm and plant this spring. ukrainian farmers have other things on their minds, including taking some of the tanks. it is a question of how much of the land will be safe without bonds flying overhead to plant. if not, you can see a serious food problem locally. particularly north africa and the middle east. >> earlier this morning, maria tadeo told us russia single-handedly destroyed

ukraine's economy. i wonder how lasting the destruction will be speaking directly to the food security. how soon after the conflict in the farmers get back out, could the land be salvageable? >> if we miss this planting season, we have a minimum winter season, then it is next spring. the time is two months for planting. missing this season, global food prices will rise. >> that is the damage to the ukrainian economy. when it comes to the russian economy, damaged by sanctions put in place. how much powder is still in the keg? how far you from the west exhausting all options? >> very far from exhausting our options. there have been key sanctions in effect, the freezing of the reserves of the central bank of

russia, affecting their ability to support their exchange rate. and the ruble has caused bank runs and so on. we are not yet seeing the rest of the banking system frozen. full blocking sanctions even against the largest in the system. they have minimal sanctions. the rest of the state owned banks are unsanctioned. state owned energy companies, unsanctioned. the state on transportation companies. there is a bit to do. in the u.s., a ban on oil imports. that is the limit. increased tariffs in canada. we need everyone to join in at a minimum increase in tariffs on russian imports, if not, a ban on particular oil and gas. a wide variety of sanctions haven't been used. we are timid, we need to move quickly.

>> that seems to be the message from volodymyr zelenskyy. he said you need to stop with gas payments. it becomes difficult. they rely on the pipelines for their lifelines and costs in control. what are you looking for in the next couple of weeks to bring this to a close? >> first and foremost, urgent delivery of the military supplies. some of which promised by president biden. in particular, air defense. the bombing and the missiles are causing the most tremendous amount of death. what we saw with the bombing of a theater in the southeastern part of the country. 300 to 500 civilians inside. that cannot be stopped. not by the brave ukrainian forces on the ground. we need air defense. number one is increased military support urgently to defend themselves.

number two, sanctions on the state owned banks. blocking sanctions meaning no more doing business with russian state owned banks. if a view existing contracts -- if a few existing contracts need to be carved out, find a way to permit by license an individual contract. but stop doing business with russia. shery: ukraine's former finance minister speaking to bloomberg earlier. we are seeing wti at the moment rebounding .3%. this after oil rose above $100 a barrel in the new york session after trading below the level for the past two days. russia casting doubt on progress in talks with ukraine, leading to support in the oil space. following european natural gas futures. rose after russian pipeline shipments dropped.

stoking concerns of potential supply disruptions amid the war in ukraine. futures surged as much as 11% before pairing the gains. gold holding below $2000. this after advancing the second day in new york. investors weighing the trajectory of the fed rate hikes. and the ongoing war in the ukraine. following nickel very closely, given the chaos we have seen on that market. the london metal exchange allowing price moves up to 12% after futures plunged by the maximum allowed for a second day. let's bring in james thornhill. walk us through another chaotic day and the prospects moving forward. >> good morning. another chaotic day yesterday. traded vents to plus or minus 8%.

but they arrived to deal with the day. the price they put in, not being recognized by the 8% down. technical glitches in the system, a possible delayed start. ultimately, the market ended down 8%. it tells you it is still finding that equilibrium after the 250% jump causing the market to shut down. shery: does it have any broader implications for the commodities complex? >> it has been relatively well confined to nickel. there are big moves going on in commodities broadly as a result of the conflict in ukraine. that is likely to continue. more broadly, there are clearly concerns over the lme. we have heard from traders who

are livid about what is going on. not being recognized. a lot of them, there might be gains on the moves described. they have not been able to reap the profit from those. obviously, they are not happy with it. still a fair amount to go, in terms of price discovery come up before the market settles down. we closed at 42,000 a ton. that is a long way above the shanghai traded price, around 30,000. most were expecting the limit down trade to continue until we find that equilibrium. the lme has widened the trading to 12%. all signs suggest we will go limit down 12% when the market reopens. still very much in a state of flux. broadly on nickel.

more of a purpose of the efficacy of that market and the big questions hanging over that exchange. shery: we will be watching that reopen. james thornhill. plenty more to come. this is bloomberg. ♪

haidi: a quick check of the

latest business flash headlines. russia's biggest lender has secured a license from the bank to issue an exchanged digital asset. companies will be able to buy digital assets and make other transactions on its blockchain platforms within a month. it is under sanctions by the u.s. and eu following russia's invasion of ukraine. set to be reducing the size of its ipo as it faces slumping equity markets. sources tell us it can cut the offering by half from a nearly $1 billion target, or even suspend the plans. it strongly denies the reports it is either shelving the ipo or changing its valuation. sydney's only casino operator can be a risk of losing its license after evidence was delivered on the first day of the government inquiry into algae -- alec jones is here with

more. what did we hear on day one? >> evidence pointing to money laundering. the inquiry being won by new south wales liquor and gaming. we heard from the assistant treasurer. she was outlining how star would accept payments from union pay at its hotels in sydney and the gold coast of brisbane. there were then transferred to gambling accounts. firstly, it gets around china's capital controls, breaching rules around how union pay kaus are to be used, and the agreement with the bank in australia. national australia bank. about 660 million u.s. dollars processed. national australia bank noticed contacted him to explain. he said the exploration given was -- explanation given was utterly misleading, but that it came from the top, and the

practice had been standard for some time. shery: what are the chances star will keep its casino license? >> after day one, it is not looking particularly good. their main competitor, crown, was accused of doing exactly the same thing. finally 120 million u.s. dollars worth of union pay money in this way. so the amount they are of using is five times the size. crown has not given a license for his sydney casino. the melbourne casino operating under tough restrictions. you get a sense of what might be coming down the pipe. after they were thrown under the bus in spectacular fashion by a junior executive, you have to wonder what is in line when they face the hearing later on. shery: paul allen joining us. counting down to the start of trade in tokyo. those are the stories we are

watching. the nikkei reporting ukraine asked the country to provide it with high resolution satellite images to better understand the movement of russian troops in the country. we are watching ubs and mitsubishi. $2 million. the venture managing assets, and we are watching toyota planning to assemble above 800,000 vehicles a month for the april to june quarter. working to make up lost production supply chain issues. in south korea, changes in the social distancing measures were used. economic assessments out of the country later in the morning from the finance ministry. south korea with the bonds. >> coming up in the next hour, the crew chief from the nomura research institute joins us to discuss the monetary policy decision.

mounting pressures of inflation. first, we speak to -- about his investment strategy. that just ahead. the market open between seoul and tokyo. this is bloomberg.

>> welcome to deborah geiser from bloomberg's world headquarters in new york. kerrie on. >> i am high destroyed watch instantly. this is the first call since

moscow's invasion and russia may invite -- avoid identical default. >> japan and south korea are coming online. it is a bit of the next picture with the nikkei be led hired by utilities and consumer stocks although communication stocks are waiting on the index. we are seeing the japanese yen holy and about six against the u.s. dollar. a little bit of a rebound. not that much. all of this as we go to where the doj policy decision. we are looking at the cosby right now under a little bit of pressure. the korean one jumping the most in two years. this as we saw the government using some of those social distancing measures when it comes to allowing a private

gathering. >> let's look at what we are seeing here in australia. it is a mixed picture when it comes to the equity session. we are seeing energy roaring back along that oil price. materials also very strong. gains at 1.5 percent. interestingly we are seeing i.t. and tech holding up as well. we are seeing the broad downside of consumer discretion, health care. we are also watching the mixed moves when it comes to the kiwi and aussie dollars. we have expectations that both of those currencies will be resuming the multi week rally. the dollar index is continuing to support the aussie dollar. kiwi stocks are up by just about .5%. we'll see some strong

performance when it comes to reopening related stocks there. this was really a volatile but some very big days for the s&p 500. the biggest three-day gain we have seen. nasdaq 100 teachers seeing that down. new york food being a big driver of the energy stock and so far in asia by .3%. extending that rally as we continue to see epic -- tepid expectations. >> let's bring in our next guest who is conscious of inflationary pressures. good to have you with us.

is that call on financials because of the rising yield? what do you like at this point? >> absolutely. i think financials kept hong kong here in singapore or korea. they tend to have a significant expansion in this. we think a major part of that increase in yields is yet to come. of course, in the asian financials we have also thrown in the indian financials into that mix for a different reason. in that case, the balance sheets have improved vastly over the past couple of years. we think they are likely to

continue to do so. >> really interesting that you made the call to india as well. we have seen the country with the commodity surge. they are taking a bigger hit than other asian countries right now. what is it that is appealing about this market? >> despite this selling of india, we have maintained our stance on the market. primarily because of two reasons. we think the company is in an early stage of economic upturn. maybe not right now. possibly about six months down the line. this is for the various supply-side measures that have

been taken over the past two years or so. second, i highlighted there are quite a few sectors in india that are available. it is a widely diversified market. a wide range of sectors are available. many of them are beneficiaries of the energy and other materials prices. many of them are beneficiaries of what we have seen likely i.t. services. it is a combination of the early stage economics. also, the variety of sectors available to investors. cracks talk about some of the upstream energy opportunities you see in asia. >> we like that space. we think that even if the geopolitical tensions are resolved at some point in time, some of the sanctions and the

supply-side constraints we are seeing in the energy world are likely to remain for some time and therefore the energy prices, the material prices are likely to remain elevated for some time. in that context we think that the earnings estimates of the energy stocks, particularly the upstream stocks have not been revised yet. i don't think the analysts actions have percolated down fully yet. if i juxtapose that with the kind of valuations that many of them are creating this act, it is a clear choice to like that space. we do have a significant exposure to the energy explorer is. christ before we go, i want to get your thoughts on our question of the day which is really given that we have seen a

few positive drivers this week and a big turnaround, albeit a lot of volatility in the equity gains we have seen globally with global stocks on track for the biggest week in over a year, do we continue to see volatility going back and forth for a while? >> in the near term, i don't think there is any escape from volatility. we have to grin and bear it. there are just too many variables that are being thrown that we have to deal with right now. earlier in the year we were only dealing with the uncertainty surrounding the global central bank reaction function to inflation. now we also have to deal with geopolitical tensions and we don't have visibility about how that situation is going to end. there are policy decisions being made in china.

the recent reassurance has come as a tailwind for the market but we have to look at the implementation. when we throw all of this into the mix, the conclusion seems to be we have to live with this volatility but at the same time, as i pointed out, the local news, particularly in the context of china is encouraging and it does constitute a tailwind for some of the key sectors. >> always great to have you with us. let's get you the first read headlines now. president biden said to hold the first copyright u.s. officials have struggled to discern china's position on the war and there are concerns that beijing could help moscow invade and provide weapons. that you will also discuss

competition between china and the u.s.. the foreign ministry has endorsed remarks made about ukraine saying that beijing is a friend and would never attack the country. however, the foreign ministry is set to clarify if that means beijing will guarantee that it will provide military aid to moscow. the bank of england has tempered its outlook for this. this will be backed by eight out of nine policymakers. in a change from february, governor and would barely softened his word on more hikes. saying they may be appropriate. taiwan central banks raised its key interest rate by the most since 2008, listing at 25 basis points to contain rising inflation. it is the first rate hike since 2011 and the first time it has

changed rates since early 2020 when it made a cut at the start of the pandemic. indonesian central bank has held its policy record low after his last cut in february. the london exchange says it will allow a price move of up to 12% after futures plunged by the maximum for a second day, prices dropped by a previous 8% limit after another glitchy start to lay the open and nickel futures handout -- have now dropped to 58% but only a few contracts have traded due to a lack of buyers. those are your first word headlines. and we will speak to a former member of the doj policy board who has been a critic of the stimulus policy. we will look ahead to the central bank's upcoming decision but next, president joe biden and xi jinping are set to discuss russia's war in ukraine in the first call since boudin's

invasion began. details ahead. this is bloomberg. ♪

>> china is deeply worried about this terror situation in ukraine . this is the reported increase in civilian casualties and refugees. the pressing tasks now is to call for maximum restraint from all parties and to ensure safety and security of all civilians including women and children and meeting basic humanitarian needs so as to prevent the occurrence of a larger humanitarian crisis. >> the ambassador to the human is calling for restraint in ukraine. looking at european futures opening right now after stocks gained on the thursday session. we actually saw a little bit of upside in the markets this week. it is on course for the best week since november of 2020. the european benchmark bouncing back this week. european futures at the moment looking up. we have seen some optimism over the negotiations when concerns

about surging inflation. this as we continue to watch russia's invasion with ukraine. global stocks on track for the first weekly gains in six weeks. let's delve into what is happening in ukraine. the pentagon says ukrainian forces have stalled the russian advance. they are not to be matched by actions on the ground. john kirby was speaking exclusively with maria, nato headquarters in brussels. >> they are fighting very bravely, very valiantly. they are using superior knowledge of the terrain and their own geography as well as their nimble behavior in terms of using these systems that are getting in there quite effectively. they have essentially stalled the russian advance. the united states will contribute to that effort by them. president biden announced another 800 million. that brings it to 2 billion in

just the last year that the united states has given security assistance to ukraine because we know they are good at using these systems in the field. christ president putin gave out a speech. the content of that speech was resounding. he said that russia will prevail here and we will meet our goals. how concerned are you about the response from russia? >> for all the talk about wanting to find a diplomatic path forward, we have not seen them act on that. they are cease-fire talks going on and we support that and we want to see them negotiate a settlement but what you're saying from the russians on the ground is a commitment to military operations. they continue to hammer cities like kharkiv, steve. -- keith. you see how much damage and death and destruction they are causing. while at one time they will --

they say they want to find a settlement, they are continuing to try to press for advantage and causing an amazing amount of death and destruction in the way. the fighting continues. you guys with cameras on the ground can see that for yourself. the fighting continues, the death and destruction continues and we would say one of the options he still has available to him is the option of a peaceful negotiated settlement. we would like to see those efforts bear fruit in some sort of earnest way. request that was john kirby speaking with maria. -- >> that was john kirby speaking with maria. the war in ukraine drags on for an extended time. that one comes ahead of a call between joe biden and xi jinping. let's get more from our white house correspondent. this would obviously be a pretty serious escalation of what we are talking about at the moment.

when are we watching out for at this point and what are we expecting in this? >> this is the first call in four months between the chinese and the u.s. leaders and jennifer jacobs, jenny leonard, they are essentially increasing -- leaning toward backing the russian position. if there comes a sign from the skull that that is the case and the u.s. comes out of it signaling they think that china is either being neutral or even more than that, supporting putin and russia in its invasion of ukraine, that really clouds the path forward and will signal that putin will feel supported or even emboldened.

he has not been making any sort of significant efforts at all. this shows china distancing itself from russia. that could further isolate boudin. this could take a more substantial turn. we have been watching it closely. we have been seeing increasing u.s. frustration with the role china is playing. it is not out by supporting russia. christ we have seen the house overwhelmingly voted to end regular trade relations with russia. what are you hearing from the white house? what other actions divided -- could the biden administration take? christ we could see that 800 million. that pushes the one week total to one billion in aid. that includes arms munitions, drones as well.

we will start to see that rollout. one of the things president zelensky asked for in his address to congress was further sanctions of individual russians. he said every russian politician has to deal with the war. we will see something in that regard. next week, joe biden is planning to go to brussels to meet with nato leaders. we will be looking to that. that will raise the potential of further nato announcement. of course, hanging all over of this is the ukraine request for plans and air support that the u.s. is opposed to. there might be some sort of alternative plan coming together or at least calls. a lot of moving pieces here. we will see a lot of this setting up on tomorrow's call to

the meeting thursday in brussels. christ coming up, we look at the hurdles raising investors in china's dollar bonds as their chances of receiving payment get lower by the day. details ahead, this is bloomberg. ♪

quite a quick check of the latest business/headlines. we are expecting a prophet here. more details about its entity marketplace. the gamestop frenzy has been criticized for a lack of business strategy.

this builds the impact of rising costs from the u.s. labor shortage and lower-than-expected package volume. this drag on the ends from price increases. they saw a profit boost as supply chain issues pushed more freight to the air. and china's largest insurer by market value saw a net income for 29% to $16 billion last year. the performance is dragged down by impairments on its investment from china land development and slumping business value is life insurance arm which generates most of its revenue. christ let's turn to investors in china's offshore bonds. borrowers struggle to make payments during an unprecedented wave of distress. let's get details from rebecca in hong kong.

none of this is surprising but what does it mean for these investors? christ although it is not a surprise that we see this unprecedented wave, what it means to be lost as an offshore creditor, they expect to be last in line but not necessarily at this scale. we see something drop like 18 extensions on dollar bonds. more than a dozen. maybe 15 or 16 defaulted by developers in this crackdown. investors are grappling with this move to unfavorable terms when it comes to looking at these deals to extend bonds or to exchange the maturities. this is a very difficult position when it comes to actually negotiating and have rick leverage. they don't want to get tied up in a time-consuming and expensive legal battle on the one hand. and it is ok if it is just one or two deals.

we have seen such an influx for these types of extensions. investors can't take this at the same time. >> for offshore bondholders, at least some of this pain might be self-inflicted. >> yes. we are looking at those for issuers. the companies are criticized by holders for not being transparent, having governance issues. the hidden debt issues all continue to rear their head and at times over the crisis. on the other hand, holders themselves have not necessarily negotiated and held their ground firmly. we are looking at how closely they should have scrutinized. one of the most profitable trades in the world when it comes to corporate debt.

christ we are just getting some breaking news the bloomberg australia sanctioning on 11 russian banks and government entities. we also saw some sanctions being extended to two russian oligarch. this is bloomberg.

>> owing to the war, europeans will in the short term confront higher inflation and lower economic growth. accordingly, the challenges facing monetary policy are changing. we are unlikely to return to the same inflation dynamics we saw before the pandemic. >> this is a moment for fiscal policymakers. what we are seeing now is the pitch of consumers of energy and

those on food and that needs to be addressed with physical measures. christ we have begun adjusting policy so that when the necessary conditions are satisfied, we can take additional steps toward policy normalization. >> the war in ukraine has made one thing clear, they need to accelerate the transition toward renewable energy as much as possible. we have a means targeted temporary measure for the lower income people. one, a larger share of our energy demand can be met with renewables. households will benefit from lower prices. christ they are talking about the policy impact of the war in ukraine. let's get a check ahead of that doj decision. we continue to see that weakness in the yen sitting at about a

six year low against the dollar. there is further room for the yenta fall after tumbling to that level on the back of a divergence in u.s. and japan monetary policy. as we continue to see those inflationary pressures weighing even in japan, consumer prices are at the fastest since last month. even that economy is not immune to strengthening price pressures but certainly most economists including our own bloomberg economist says that a celebration will commence to be a j that this is a sustainable reflation every move. that very interesting move, that haven demand for the yen has all but evaporated over the past few weeks of trading. the bank of japan is widely expected to underlie the need to stick with monetary easing, there has been a road of central banks taking steps toward tightening. let's get the executive economist institute, it was

previously a member of the doj policy board. obviously, cell phone prices as well as energy prices expected to have an outside impact going into the next month of inflation numbers. his governor corroded by to be staying cautious and really believing this probably won't lead to a stable related -- stable inflationary effect? >> the inflation rates go up and exceed 2% target level in the coming months. he explained this is not just the inflation rates but the temporary increase of the inflation rate. combined with the ire -- higher oil price. also, according to this rate, it should be accompanied by the higher wages.

under that condition, i think there is no chance that doj may change this. christ they are still getting a helping hand if they continue to see the yen at these levels. >> i think this will be problematic. it is pushing up the impression rate and the cost of living. and this is becoming more unpopular. this caused a yen depreciation and undermine this. however, the governor has a strong belief that yen depreciation will be good for

the japanese economy. >> this as we continue to see yields rising globally. a little bit of a pause in today possible session. but we have sandy jgb tenure yelled continue to rise. will we see them trying to cap those yields? what will be the implication for the yen? >> it may go up to 75%. it is hard to say. however, i think the be oj could not put a strong bit into this. i think that the governor -- we

may want to avoid it. this is very unpopular to the public. it will stop the long-term yield. christ how much will be -- will the easing of virus restrictions help the broader economy? christ they could be undermining the economy. this is the expansion of the program. i think the increase of the inflation rate and oil price may undermine the consumption of gdp. i think that the oil hike is

expected to reduce the gdp. i think it will be very fragile. >> still hold about that $100 a barrel. thank you very much for joining us. the economies looking ahead to the be oj policy decision here. this is the first word headlines. the u.s. is warning that vladimir putin could threaten to use nuclear weapons in russia's invasion of ukraine if they drive on. the pentagon officials say the word is threatening moscow's military manpower and reducing its weapons arsenal and putting could use the threat to project russia's strength. there is major progress in cease fire talks with ukraine. blaming steve -- kyiv for slow negotiations.

they said the money to citigroup. we are told j.p. morgan received approval from u.s. authorities to send the payment to city and they said it could take a technical default of the table for russia but questions remain about corporate debt. peru's former president will be freed from jail where he was serving 25 years for human rights violations. the constitutional court approved the release, restoring the humanitarian pardon granted in 2017. those were your first word headlines. christ coming up next, change may be on the way for hong kong's straight covid policies after carrie lam acknowledges growing public frustration. that is next, this is bloomberg.

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>> >> i have a very good feeling that some of our financial institutions are losing patience

about the isolated status of hong kong. carrie lam acknowledging frustrations in the community over straight covid policies and hinting changes could come next week. let's bring in, ryan. what sort of changes could we see? >> i think she all but confirmed that they will reduce or address the link of quarantine for people coming in from outside hong kong. at the moment you have this distro between travelers coming in who are required to test negative for covid having to quarantine in a hotel for 14 days and then people on the ground in hong kong who actually have covid allowed to do seven days of isolation in their homes. i think there is a lot of concern and anger about that. that is something they will address. potentially, some of the

restrictions on the ground around dining and access to leisure activities, there is potentially some easing around that but i don't think it will be anything substantial in terms of border reopening or anything like that. christ we are just hearing that jen jen has resumed factory -- shenzhen has resumed factory production. they had a massive set of applications for the companies and the supply chain that are based there. we are hearing the other districts are still under lockdown. that should reduce the impact of the covid outbreak on the economy. we are starting to see some of these cases come often. there also seems to be a change in messaging when it comes to what sort of covid zero policies will be adopted going forward that have less of an economic impact. christ definitely. you have some messaging from xi

jinping that they need to address the economic impact of covid zero. the endgame is still the same. it is very much devoted of china anytime soon when it comes to international borders but you are seeing a tweaking of the policy so that the supply chain is not impacted as much. that change in lockdown is being used in some parts. it is becoming a lot more targeted when it comes to these restrictions. i think that would be welcomed by economists in the market. >> and south korea is further using virus restrictions. even as it continues to record hundreds of thousands of new cases daily. that rate is the most of anywhere in the world. just today, 407,000 17 more

coronavirus cases. this coming from a record of more than 600,000 in a day. the fatality rate is still significantly lower. what is going on? >> south korea reported over 600,000 cases but the mature -- the mortality rate remains at .14%. that is 1/10 the rate of the u.s. and the u.k. and firefighters tell us the key reason behind the declining rate of death is because they are sticking to the pcr testing which a lot of the countries have abandoned now that covid is becoming an endemic. also, they say the key reason is the vaccination rates. the high vaccination rate among the elderly and the vulnerable groups who have higher risks of getting severely ill. also one of the key reasons. it was definitely not -- it was

definitely expensive to stick to the pcr testing regime. $1.3 billion on the pcr tests alone. they were able to keep the rate of severe cases and the death rate at a significantly lower rate. >> is the government comfortable with these levels of cases if debts are staying low because of the testing or are we likely to see other restrictions? >> because there are skyhigh cases right now that we are reporting on a daily basis, the government has actually eased further restrictions. just this morning, the government eased some social distancing measures including having more people together from six people limited gatherings to

eight people. they are still keeping the restaurant and cafe hours to 11:00 p.m.. but of course, korea is focused on the declining number of fatality rates where they see this is less of a risk for the public and of course, the experts warned that this could be dangerous right now because we see cases rising. >> let's get you a quick check of the latest business/headlines. assembling a monthly average of 800,000 videos globally. that is up from a year earlier. short of the plan to make up for lost production due to covid and ship shortages. earlier this month, the manufacturing situation was at its limit. they announced it would cut this.

they are reducing the size of the ipo as they face a slumping equity market. sources tell us that the softbank firm could cut is offering by half of the nearly $1 billion target or even suspend its ipo plans. it strongly denies the report that it is either shoving the ipo or changing its valuation. russia's biggest lender has secured a license from the central bank to issue an exchange of digital assets. they say that countries will be able to buy digital assets and make other transactions on its soft chene park form -- soft chene park form -- soft chain platform within a month. >> next, we preview the opening of china. more on that next. this is bloomberg. ♪

>> that abrupt change in policy and how it impacts individual names. we are going to have to see a change in reality and not just words.

>> take a look at this chart. this is the biggest flip in the last decade. this returns 17% and 25% in the three months that followed. >> chinese markets and focus in the next hour after that historic surge fizzled out. investors are debating whether the pledge to stabilize markets can turn to concrete policies. yvonne man is here. day three. i have to say think goodness it is friday. we are all exhausted when it comes to this roller coaster ride. >> what a wild week. in the u.s. session, there may

be some indication of what is to come in the mainland markets. just about 40 minutes or so, it will be pretty interesting. that 40% rally we saw. then you can climb back a little bit but still lower by about 4.5% or more. the key question is how we reach that policy bottom. will beijing really deliver on its promise to boost growth and entities crackdowns? we are still waiting for that policy shift so to speak. morgan stanley for one. they say there is potential upside value here for these

stocks. if you look at the policy shift, it could be as early as monday. some banks might lower that rate. after state council meetings in the past, if you look back at 2018 or even july of last year, after that meeting, it usually follows a rate cut from china. whether in the form of triple archives or a signal of things to come. we are still talking about the hang seng tech index. we are still wondering what this all means but there are a lot of issues at play here. we just heard from the u.s. saying they want full access to audits of chinese companies. that provided a high bar for any

kind of deal or chinese companies to be listed in new york. correct technical geopolitics. not to mention the latest on covid-19 as well. >> this is quite interesting. the fact that shenzhen may be resuming some of the factory production and subways in five districts now. they are easing some of those restrictions in shenzhen, the tech hub. when it comes to hong kong, i think carrie lam's press conference was quite telling. the afternoon session where she basically acknowledged that the government is now aware that tolerance is faded when it comes to some of the strictest

restrictions in the world. he could hear some signs of them trying to weigh out these covid policies and if they need to change tact in some way. also, the amount of time you need to quarantine at a hotel if you are flying into hong kong. christ we will be watching some of those stocks at the china open. we are talking about those related to the economic reopening. which stock are we talking about? casinos like mgm and other restaurant chains as well.

we had seen a little bit more covid easing in south korea as well. this may be leading to a little bit more upside when it comes to the asian markets. take a look at futures trading at the moment. u.s. futures are down .7%. ty x futures are under pressure as well. the topics gaining ground. we are also watching the chinese yuan holding at that 636 level. not to mention the chinese futures closing down. you can see a little bit more of a rebound here when training starts. christ we have the weekly gain, the best weekly gain in just about over a year. we will discuss chinese tech

stocks and we will also be speaking with them about the great hike inflation pressures and the risk of policy mistakes. ♪ this is bloomberg. ♪

>> howdy friday from hong kong, not a blog a.m. in beijing and shanghai. i'm david ingles here. president biden and pre-thinking -- xi jinping are going to talk on the phone. the issue in ukraine topping the agenda. the chinese equities might be starting to