♪ haidi: i am haidi stroud-watts in sydney. i am kathleen hays in new york. asian stocks set for a steady open as aussie and qe bonds come under pressure. ukraine says any peace deal with russia would need a referendum,

while moscow refocuses its military campaign. the u.s. warns of cyberattacks. a plane crash in china baffles specialists. haidi: we are seeing a slow and steady start when it comes to equities trading, but of course, the pricing action has been in the bond markets. u.s. rates were hammered on monday, one of the worst days for treasuries in a decade as the fed decided to put 50 basis points back on the table, putting a re-think and repricing across the curve. we are seeing that reaction when it comes to the australia kiwi stocks, the 10-year yield climbing as much as 13 basis points, and a 14-basis point rise in the 13 year yield the. -- yield.

new zealand is coming in and suggesting that consumers are growing pessimistic about the environment. australia's consumer reading, the lowest since back to 2020, as well. in terms of the equities, we are seeing sydney stocks up by about 0.5 percent, bouncing back from two days of losses, and we are watching nikkei futures -- japanese futures were closed for the vernal equinox. kathleen: let's take a look at the treasury market in terms of how futures are trading, a bounce back and praise, meaning a lower yield, but it was two days in a row of big bond yields. the 10-year ahead its biggest jump since march of 2020. the yield went up to 2.03%.

as for stocks, pretty much flat. there was a decline in the s&p 500, the nasdaq after jay powell around midday talked about being ready to do whatever it takes, 50 basis point hikes. that is what created huge moves up in the bond market. after the selloff, people said, well, he's already said that. now we have some certainty. as for wti crude, you can see that it is up marginally right now. oil is up for a third day after the war in ukraine reaches a one month mark. it rose as much as 6.5%, and now continuing on at $112 per barrel

, nations pushing for a fifth-round round of sanctions. let's get analysis of the hawkish comments. we're joined by rates correspondent for asian markets, garfield reynolds. two days in a row. when you saw the yields friday and monday in the u.s., 20 basis point move up in yields. that is pretty dramatic. garfield: the move was very much about what was going on on the oil complex and the increasing focus on commodities price pressures and not much emphasis on the idea of what the war in ukraine might do to growth over the longer-term. the war in ukraine has slipped off of investors' radar as the news on the ground stabilizes. friday, with the commodity

prices, and then monday, that was very much about a bit of a curveball from the fed. last week when the fed raised rates, powell was keen to emphasize the idea of a soft landing, that they were confident they could raise rates and the economy would do ok. his tone overnight was, we hope for a soft landing, but it is complicated, and the most important thing is fighting inflation. that means rate hikes early and often, potentially 50 basis points, so you are lead to a massive move after investors already thought they had gone far enough. haidi: does this change things for the rba? garfield: it makes the rba's attempt at a patient stance a lot harder. in an ideal world, governor lee would have wanted to emphasize

they will wait for the may 18 release of first quarter wages data in australia to see if we are getting a contribution from low unemployment rates feeding through into higher wages, and if that creates a sustainable basis for inflation, but investors are saying, you don't need to worry about inflation here. they are more certain than ever that june will see one hike, and multiple hikes by the rba this year. so far, all he has said publicly is a rate hike in 2022 would be plausible. haidi: chief rates correspondent garfield reynolds. let's take a look at the china eastern jet that crashed in the

country. parts of the wreckage have been found. investigators are beginning the arduous task of figuring out how the boeing crashed. stephen engle is in seattle near boeing's facilities. we are joined by brooke sutherland. let me start out with you, stephen. we know there is a decent safety record for the carrier and this aircraft. what do we know? stephen: china has had an incredibly good safety record in aviation. the last fatal crash was in 2010. this aircraft was next-generation because it was the predecessor to the max, which had those two crashes a few years ago centering around the maneuvering soft mirror

augmentation system that took faulty data coming from sensors and caused this problem. this aircraft, the nexgen variant, does not have the software, and it's a completely different kind of crash. this flight was about to enter its descent into gong show -- it plummeted at 31,000 feet per minute, a terrifying nosedive. it recovered briefly before plummeting into the mountains. it is baffling aviation experts right now. these kinds of investigations will take some time. china eastern airlines has grounded its entire fleet of the 737 800.

china is one of the biggest customers of that variant, some 4000 of those planes in service in china. we heard a fairly quick public comment from president xi jinping saying he was shocked by this and was ordering an investigation, but absolutely, it is a different kind of crash than the max crash. no crash comes at a good time, but it's a terrible time for boeing, which is trying to ride this nascent recovery in china where they've been on the verge of returning the max to service. it was the chinese aviation regulators who were first aground the max airplanes, not the faa. kathleen: what are the implications for boeing's max? brooke: you don't see the max

flying commercially in china. it's one of the countries that has not restarted flights. we saw the aviation authority issued an airworthiness directive. there were incremental steps that looked like boeing was moving towards deliveries, but we have not hit that benchmark. when you look at china eastern's response to ground its entire 737 800 fleet, it tells me they are taking an approach similar to the max crisis, which is to use a blunt instrument while questions about safety are investigated and investigators figure out what exactly happened. that is an entirely different airplane. it is separate, but again, it seems like caution is the

approach here. it does make you wonder about boeing's timeline. they had been hoping to deliver the 737 inventory they built over the course of the next couple of years, and they had been hoping to ramp up their production of the max. i think all of those have to be question marks at this point. kathleen: brooke sutherland talking about this crash that killed 132 people. vonnie: russia refocusing its military campaign on the east and on the port city of mariupol. the bombardment from land, sea and air continued after a russian ultimatum that the city surrender expired. it is a sign that president putin is trimming his ambitions after failing to force a rapid regime change. president biden has warned that russia could be weighing a cyber

attack against the united states. biden pointed to intelligence that suggested moscow is exploring options for a hack attack, which could be prompted by frustration over sanctions and progress in the war in ukraine. biden urged businesses to hold up their defenses. the european union will reinforce the u.s. is warning to china that it will face consequences if it supports russia with sanctions relief or military support. the aim is to encourage beijing to take a responsible stance on the war in ukraine. communication with china is expected to be on the agenda when president biden meets eu leaders on thursday. china has pledged stronger monetary support for the economy while cautioning against flooding the market with liquidity. the cabinet called for the adoption of monetary moves to

sustain credit expansion at a stable pace. authorities said they would avoid measures that could hurt market sentiment. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. kathleen: still ahead, amid sanctions, we look at the potential long-term impact of the war in ukraine on the global energy market. up next, shane oliver tells us how he sees reducing risk and the main drivers he is keeping his ion appear this is bloomberg. ♪

>> what i said is if we think it is appropriate to raise 50 basis points, we will do so. haidi: fed chair jerome powell speaking earlier. let's speak about the impact on markets with shane oliver, chief economist with ansi powder -- ansi capital. how much volatility do you see? we had movement in the treasury market that extended into the australian bond session, as well. shane: the reality is the

situation in ukraine is far from resolved and could get worse. we have central banks raising rates and becoming more aggressive in doing so, or that seems to be the message from the u.s. fed. we've got rate hikes coming up in australia. we've seen a good rally in markets from their lows a few weeks ago, but that rally is bumping up against resistance. given those uncertainties, i think there is a high chance we could go back and retake those lows in the short term. in 6-12 months, i'm raising the outlook to optimistic as inflationary pressures continue to come off the supply side, but there is a long way until we get to that point. i think volatility will continue

to dominate. haidi: how do you invest around commodity and energy plays if you think that is still an opportunity echo there are several shane: -- shane: there are several ways to do that. we've seen a pullback in oil prices, and the last week or so has seen some sort of correction in resources or stocks. alternatively, you can weigh towards countries with heavy exposure to these resources. yet performances have been the canadian and u.k. share markets and australia sure markets. they've been relatively strong

performers compared to commodity user countries, net energy importers such as europe and japan, which have been underperforming. even if you don't want to invest directly, you can do that. kathleen: with rates up so much, yields up so much, it is harder to finance stuff. at the same time, jay powell mentioned the u.s. economy is pretty strong, and there are a lot of economies that are. is that something that will help the stock market bulls or people who want to put the money to play get what they are looking for this year? shane: it could ultimately. we are seeing a rise in bond yields. pes have already come down the. the flipside, of course, is economic growth remains strong globally.

around the world, growth is pretty strong, and that is resolving the upward revision to earnings forecasts. we are seeing these earnings revisions come through, which ultimately should provide some support for share markets when some of the desk settles around these -- the dust settles around these issues. kathleen: how do you factor china into the investment equation? in the last week, tech stocks just shot up. property developers getting a break on taxes. they were expected to cut the ltr or signal to banks that they should lower it. they didn't it.

what sort of slower driver for the region is china this year? shane: certainly a big unknown, a big risk in all of this, on the one hand, you have the slowdown in the chinese economy. you got the property issues. you got the resurgence of coronavirus and lockdown. you've got these risks if china helps russia, it might be sanctioned as much as russia has been, which would be a game changer in the big scheme of things. we are going to see more policy stimulus coming out of china. we didn't see it last week. chinese authorities sometimes confuse on that. that i think is probably what we are going to see. we did see some positive comments from chinese authorities last week in terms of the likelihood of more stimulus, and i think we will see that.

providing china is not subject to sanctions, i think chinese growth will accelerate this year. it may not get to the 5.5% official target. that is a big ask given that the chinese economy last year was only growing at 4%, but provided sanctions are avoided, china should be a source of support. kathleen: let's end on a positive note, chief economist at amp capital commission oliver. you can customize your settings so you only get news on the industries and assets that really matter to you. this is bloomberg. ♪

haidi: let's take a look at the commodities complex.

we are seeing the third day of gains when it comes to the growing concerns about the prolonged war in ukraine and potentially eu leaders considering a six the round of sanctions with some opposed to including oil and energy, but certainly up for discussion, the war nearing that one month mark without a conclusion insight -- in sight. some analysts say that would shave off 4% or 5% of mobile supplied. you can see new york crude pushing higher. natural gas, also seeing the upside. we can see gold holding on to some of those gains as traders are relying on economic growth. chair powell's more hawkish comments are weighing, some saying the fed will need to hike 4% to 5% to beat inflation, and that is repricing gold, as well.

almost 1% in the previous session appeared aluminum is what we are watching the. aluminum -- russian supply squeezed. we are watching allie minium -- aluminum jumping after that news. kathleen: we're tracking the fallout of the global supply crunch. these are the top stories. australia's ban on aluminum imports from russia is pushing up supplies. australia's applies almost 20% of russia's aluminum. india is trying to boost its oil reserves. india is considering paying in rupees to consider getting around sanctions on russia. nike earnings beat expectations as they overcame supply chain issues. the cfo flagged that the company has more goods than normal stuck in transit as some shipping

lines remain charged. u.s. automakers fell on monday with concerns about further supply chain problems, this is the war in ukraine nears the one month mark. ford's output in germany and spain has been reduced due to parts shortages. bloomberg terminal users can read more about those stories in our newsletter "supply chains" on ni trade nl. haidi: we've been talking about that huge move in treasury yields in the aftermath in asia. the kiwi jumping, the gap at the narrowest since 2007, really worrying signs for some people that it is signaling an economic slowdown as we see the more hawkish than expected hike being projected potentially by chair powell. both of those levels, last seen

back in 2018. more of course as we are watching treasury futures as well as jgb, as we get into the japanese trading session appeared take a look at the broader equities session. we are seeing robust upside

vonnie: this is daybreak asia. federal reserve chair jay powell says the central bank is prepared to raise basis points by 50 points if necessary. speaking at the national association for business economics, powell adopted a more hawkish tone for inflation than just a few days earlier. he said curbing prices is the fed's top priority for 2022 and the fmo see is right to move more aggressively. >> the expectation this year is we would see inflation peeking in the first quarter, then may

be leveling out, then seeing progress in the second half, and that story has fallen apart. to the extent it continues to fall apart, my colleagues and i have reached the conclusion we will need to move more quickly, and if so, we will do so. vonnie: china eastern said the grounding of its boeing 737 jets . a plane headed for a chinese city plunged 20,000 feet in under two minutes. it is china's first commercial air crash in over a decade. russia is refocusing its military in ukraine on the east and on the port city of mariupol. the bombardment from land, sea and air continued monday after a russian ultimatum for the city's surrender expired. the intensity is seen as a sign that president putin is trimming

his ambitions after failing to force rapid regime change in kyiv. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. ♪ kathleen: ahead of ukraine's biggest state owned companies says sanctions against russia should be expanded. in an exclusive interview, the ceo called for restrictions on moscow to be stepped up. >> they've been discussed at the highest political one, not just in ukraine, so currently the decision is technically possible. we continue seeing russian gas. >> can you speak to us about the capacity of those flow? -- those flows?

can you speak to us about the capacity and also how russia is getting paid here? >> yes. we have enough capacity. russia is currently using only one third of the available capacity of gas through ukraine. currently, they are just using the contracted capacity. we understand that as soon gas continues to flow through ukraine, it's not just the matter of payment that russia is making, but it's about deterrence in terms of protection of our infrastructure. they will not bomb infrastructure they are using themselves to sell their gas in europe. >> can i speak to you here?

the russians are paying you for that transit. how is that financial arrangement working? is it being paid in rubles, dollars? how does the money get transferred? given the financial situation we see in russia and the sanctions applied, how does it apply in terms of the payment to you? >> we are talking about hard currency, euros, u.s. dollars. sanctions against russia include some important exemptions for things like gaza prom bank and burbank. that is why major russian companies can use accounts in the west to get money for the exports of oil and gas, and by the way, that is why we are saying it should change.

we should not allow putin's regime to get money for the expert -- exports of oil and gas. they should be able to get this only on the escrow account, and until they withdraw their troops from ukraine, they should not get access to this money. haidi: speaking exclusively with bloomberg. wti prices are rising for the fifth consecutive session the p the kremlin is warning that any ban on its oil imports would have a profound effect on global markets. we are joined by our guest. will we see prices rise? will we see sage sheehan include energy?

we've seen projections of a 4%, 5% cut. >> in the oil markets, we expect prices will be $120, 150 dollars, that range. any quick and significant rise is unlikely. it is unlikely that will happen as we think it will stay close to its 2021 target of 400,000 pounds per day. in asia, they are trying to keep the pain at the pump at a minimum for consumers. all in all, quite strong for oil

prices. we expect prices to remain relatively high because of the competition between asian buyers >> and 60% of u.s. energy is not coming into the eu, which means asian buyers find it difficult to meet for the next few months. kathleen: let's go to coal. coal prices in asia have fluctuated from $250 per ton to over $400. i assume this is driven by factors related to the war in ukraine. regardless, it is going to be tough on the market. >> oil prices were rising before russia's invasion of ukraine. that is because of the fact that coal demand last year rebounded very sharply, almost 6%, after

falling 4% in 2020 because of the pandemic. global coal demand is expected to reach the same by 2024. supply is a bit disrupted. indonesia said it might halt exports. it is the largest exporter in the world. russia is the third largest exporter, and there are concerns around sanctions. that is adding fuel to the fire. kathleen: what a time to be a commodity trader. thank you so much. coming up, olympus says it is ready to make the change to become a global medical technology leader. our conversation with their ceo

is ahead. this is bloomberg. ♪

kathleen: a possible electricity shortage, powerplant outages, stretching japan's greater. japan will also eventually need an extra budget. suzuki will invest about $1.3 billion in ev and battery production plants in india according to nhk. olympus has seen its fortunes change since 2013.

since then, the world's largest maker of endoscope has seen its shares double. management group cut jobs and sold off non-core assets while focusing its business on medical devices. we spoke to the ceo about his plans for the future about whether olympus will continue providing services to russia. yasuo: as far as our business in the ukraine and russia, first of all, we will continue providing our service to those areas. the people in those areas, they deserve any medical support we can provide to them. >> since you took over the top management role, three years have passed, and you said you want to make olympus into a leading global med tech company.

since then, you've gotten out of the camera business and solutions of business since april. i've wondered how these moves help you achieve the goal. yasuo: in 2013 when we were discussing a corporate strategy, my theme is how to maximize our corporate value. therefore, how do we change this company in one direction as one team? we had separate goals for the microscope area and consumer camera area and medical endoscope area, and those cultures are quite different. there is no business synergy. the technologies are very much the foundation and coming from an original place. changing the culture is to focus

on the medical business. we are very much a technology oriented company, but we have to become a more business oriented company. >> you also have two members from a value activist fund from outside of your board. i wonder if those additions have helped you to transform your company's culture. yasuo: yes. a lot of the options i have taken is to increase the diversity. this company has a very successful story, focusing on the technology announcement, but going into the business approach, there's a lot of things that we have to innovate.

because of the nature of the technology company, i think we are very much a self promoted culture, very proud of our technology, very proud of our product, very proud of our service, but we have to look more broadly. one of the very first things i have done is changing the management team. when i took over the responsibility of the ceo, only 10% were known japanese. we wanted to change this company to a global medical company, and that requires a change in the

culture. any type of diversified opinion and viewpoint is very much welcome. in that situation, that may be one of the big reasons why we are happy working with many people. >> you've announced that you are going to spin off the scientific solutions business starting this april. when you did this announcement, you also told about a possible sale of the business. i wonder where things stand, if there are any parties that have approached you. has anybody showed interest? yasuo: we know it's not only would we carve out the scientific solution business from the medical business, but not limit it to that. we may think of a further

enhancement or divestiture of that investment. that should be the natural course. one thing besides that specific case, we are very much caring to be transparent. that should be one of the required behaviors for a global company. we will operate very openly and transparently, so once we decide we will carve out the company, the purpose is to maximize corporate value. olympus is a self promoted company, but especially we have to become the global medical technology company. we need to enhance our speed. we need to enhance our product portfolio to compete with the global market, with our global competitors. haidi: that was olympus's ceo

speaking with grace huang. you can get more on tv available to all bloomberg terminal subscribers. much more ahead. this is bloomberg. ♪

kathleen: the virus wave has pushed back the publication of its results until the end of april. warren buffett's berkshire hathaway has agreed to by allegheny for $11.6 billion. the offer of around $848 per share represents a 25% premium over allegheny's closing price friday. the deal would be one of the largest in berkshires history and ends of berkshires drought of acquisitions. looking at apple, it has

resolved a widespread outage. the problem hindered product repairs, swaps and item pickups, and limited workers' abilities to communicate. apple told staff that the outrage stemmed -- outage stemmed from the domain name system problem which and are often caused by human error, which we can relate to. haidi: japan has issued its first ever warning of a potential electricity shortage with tokyo's power grid stretched by a follow -- last week's earthquake and colder weather. let's get the details from bloomberg's and commodities editor david stringer. how long to expect this threat to our electricity supply in took to persist for? david: good morning.

as you say, we heard from the trade minister who said it is severe, and this is something that could continue for potentially the rest of the week. it we are in a situation where there are some key power plants that earthquake in northeastern japan last week, and that is contributing to a crunch on power capacity. to put it in context, in the wake of the fukushima disaster in 2011, we didn't see this kind of squeeze on power capacity and japan and particularly tokyo. this is the first time tokyo is encountering a citywide warning it could phase potential rolling blackouts. kathleen: what does it mean for consumers in particular? david: already the key utility has told consumers they need to be conserving electricity all week.

that gives you an indication of the seriousness here. 100% of capacity is being used. if we persist, we have a situation where we think all capacity on the grid for any prolonged amount of time, that has to trigger those outages. consumers need to conserve electricity. we've seen spot electricity prices rise, jumping monday to the highest since january of 2021 a. potentially higher bills and that need to conserve electricity. haidi: adding to the inflationary pressure in a way the boj doesn't want. in terms of the causes of the situation, what are we looking at in terms of the combination of things, and can some elements be prevented in the future? david: good question the. we have had this combination of

power plants going off-line as a result of the earthquake, and at the same time, the whole energy complex globally is suffering from tightness. it is not the case that japanese utilities can rush into global markets and buy more liquefied natural gas or coal. prices are too high. there is not that ability to immediately fix these problems. that does mean we are in the situation we are now. how it will be handled in the future differently, look, it is a question officials will be wrestling with. kathleen: that was bloomberg's energy and commodities editor david stringer. these are the stocks we will watch as trade opens in japan and korea, names like tokyo electric may move on that first-ever power supply warning, and a hit top she will build a $70 million factory in maryland to build railcars for washington

metro. korea's sk chemicals is planning to buy back $40 million of shares. coming up in the next hour of "daybreak: asia," why hong kong 's easing of coronavirus restrictions could be a big step towards moving away from covid zero. we will also get the market outlook from ubs. that is all just ahead. market opens in seoul and tokyo are next. it was a roller coaster ride in u.s. stocks today, looking pretty much flat, u.s. futures looking weaker. nikkei futures are moving in the other direction, a gain of about 1%. we will see if that follows through. japanese stock markets, close yesterday. they took a little holiday, so everybody's got catch up to do, but it is nice to see green on the screen and optimism. keep it right here.

this is "daybreak: asia," and this is bloomberg. ♪

>> welcome to bloomberg's world headquarters in new york. i am kathleen hayes. >> the major markets have just open for a trade. our top stories this hour, pressuring global bond.

beijing pledges a stronger monetary policy but cautions against excess liquidity. we will take a look at the opening in japan. japanese markets closed. there is definitely some positive momentum there. interesting to see that the japanese stocks are in a green mode this morning. also, jay powell's declaration of an aggressive rate hike is one thing that is driving this higher. and then the bank of japan holding its policy study. dominic roda saying i am not moving any of this. it looks like a japanese tenure

is also looking a bit to the negative side. this is the limit we are seeing. u.s. stocks show up reasonably sharply when jay powell spoke at midday but they came back to close pretty flat. there is some momentum there. we can see this ad 121.2 eight. a little bit stronger this morning. there are some technical assistance on the downside. the bond yield was moving down a bit. not surprising after we saw the big move up since 2019.

this is well above two. downward pressure on prices around the world. >> take a look at what we are seeing when it comes to treasury features. we see that repressing happening. there is that selloff in treasury. treasuries are already under pressure with the block cells. this is a pretty steady session. new york food pushing hard for a third day. the? could be one that continues to bolo.

take a look at that energy. this is the weak or slow we were seeing since september of 2020. we saw the big move in the tenure. these are levels we had not seen since 2018. we are watching the yield levels around asia. take a look at some breaking news crossing the bloomberg. we talked a lot about whether these big tech names in china have found a bottom. we saw that they announced this $15 billion share buyback program.

alibaba announcing a $25 billion share buyback. that is an 8.9% portion and that reason buyback authorization was for less than that amount in august of 2021. continuing to be hammered by these regulatory concerns. that share price is down about 13% this year. we have seen cells missing estimates in recent times. the cloud business is also starting to ease. all of that has been weighing on that share price. this is the buyback for its shares. >> it cannot hurt. let's discuss the implications of the selloff in the treasury market. this is the wealth management regional cio. i just want to flip the page a little bit.

the golden dragon index was lower in the u.s. today. it was weaker after the pbs he did not cut this. the central bank mixed in there. it ended the day a bit lower. in terms of starting there, the chinese bond market has looked good. they promised to do more stimulus. when you look at alibaba, what do you make of chinese stock more broadly? >> last week because comments -- they are more or less a tail end of the regulatory chinese tech companies. we do expect more easing to come. we do expect a lot more physical

measures to come through. chris good for you. we have enough growth over the course of the year. >> if you look at the chinese equities market, they are trading at some pretty effective valuation. based on the valuation, we are trading at about 35% discount from the u.s. equity markets. we do expect the growth to be a pretty strong recovery.

>> we are seeing volatility pulled back when it comes to equities. when you take a look at the big move across bond markets, is it just a matter of time that that seeps through as well? >> i think you're right. i think it is the bond market driving the global capital markets right now. last night's move was a steep one. it came across because fed chair powell was trying to cut the market while possible at the next policy meeting. i think the market was in for a pretty ride. there was a significant job as well. >> where do you find opportunities at the moment? >> we actually liked the energy

here. we thought this was a very good opportunity to get in. we do see commodities as a very good hedge for rising. given these global supply chain problems. we need to get exports to the commodity sector. we also like chinese stocks. we do think the chinese stocks are very attractive to investors. if you combine all of that together, chinese stocks are really attractive. >> when you at the ukraine war and all of these increases which may not be over when we look at what they had done to food prices. it will be a big deal for

exporters as well. how does that affect your investment picture of where you say i am going to put money this year or not. >> that is a good question. we struggle with it. if you have a scenario where inflation is rising across all countries, i think the first point of view are these currencies. this means that countries are not going to tolerate a legal currency. in this case here, you have to look at this because if your currency is weak, these are the net importers. they are likely to tolerate a

weaker currency and start off with a higher u.s. dollar. these are likely to be in a better position than the countries with the opposite fundamentals. we do know that these are a better form of investment for asia at this point in time. these are actually markets over the next six months that we are worried about. >> great to have you with us. let's get you to vonnie quinn in new york with the first word headlines. >> russia is refocusing its military campaign in ukraine on the eastern port city. all of this continued before the surrender expired. the intensity is seen as a sign that president putin is trimming

his ambitions. in a statement made monday, they suggested that moscow was exploring options for a potential hack attack which should be prompted by frustrations over sanctions and the progress of the war in ukraine. this is them adding that most critical infrastructure is ran by the private sector. the european union's warning china that it could face serious consequences for open russia with military support. sources say that washington has been coordinating ahead of the eu china summit at of april with the aim of encouraging beijing to take a responsible stance on the war in ukraine. communication with china is expected to be on the agenda when president biden meets eu leaders in brussels on thursday. china has pledged stronger monetary policy while pushing against flooding.

according to state broadcasters, the companies can call for the adoption of monetary tools. authorities promised to maintain policies that can support the economy while avoiding measures that can hurt market sentiment. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. >> coming up, hong kong signaling a shift in its covid policy. more analysis on the announcement had. and next, a plane crash in china. it nosedived from nearly 30,000 feet. this is bloomberg. ♪

>> we continue to track the boeing 737 passenger jet that crashed in southern china. parts of the wreckage have been found. investigators are beginning the arduous task of figuring out how the plane crashed. stephen engel is in seattle. we are also joined by our asia transport reporter. what do we know so far? is there going to be fallout for boeing? >> absolutely. there will be fallout for boeing. danny and i will be going through that.

they are pretty much baffled right now. this is the next generation version of the 737. not the max. it does not have the mcat software which is at the heart of those crashes. this is in the 25 year history. this was grounding the entire fleet of 737. this is an aircraft that plummeted in about five seconds after flying toward guangzhou. pretty much uneventful for most of the flight until they began the descent.

part of the wreckage has been found but the answers to the questions are long. >> what does this mean for china's track record in aviation safety? >> china does have a very strong aviation safety record. you have to go back to 1994 to see this. china's aviation safety market is a strong one. they are already set to overtake the u.s. incised by the middle of the decade.

>> when it comes to expectations on where the process goes from here, what can we expect when going from previous investigations? it can take a long time to determine cause. >> we heard the emergency teams did find parts of the wreckage. one critical aspect that will help them push this on is to locate the black box and site data. this will establish what has happened. at the moment we don't really know what happened other than what we can see from public data. this is still really hard to piece together what has happened. >> thank you so much. aerodynamic data -- our dynamic

duo selling us more. you can get around up to get your day going in this edition of daybreak. bloomberg subscribers can customize settings so you only get news on the industries and acts you really care about. this is bloomberg. ♪

>> a quick check of the latest business-class headlines. making changes needed to become a global medical technology leader. the company is already the top maker and has seen their share price double since 2019. he told bloomberg he is

committed to diversifying his management team while focusing on core units. >> we have to become a global company. this is what we need to compete with the global market. >> apple has resolved widespread network outages that not its app store off-line for some users. there was limited disability. apple told staff that the outage stemmed from the domain name problems which are often caused by human error. nike's third-quarter estimates were beaten. it is a boost for the company

that is seeing supply chain issues. revenue from greater china dropped by around 5% but still beat analyst expectations. nike share price is down 22% this year. on track for the biggest quarterly drop since 2008. alibaba is upsizing its share buyback. let's bring in bloomberg's asia tech executive, peter ahlstrom. is this a move to boost the stock price? what is going on? >> absolutely. it is a vote of confidence in alibaba's own shares. the company stock has been beat up over the past 18 months because of this page and cracked down on the tech sector that really began with the financial ability of alibaba. shares have been hit by regulatory actions. this is the company saying that

they are going to put their money where their mouth is and spent up to $25 billion buy back own shares. that is a huge increase from the 15 million a nest. they increased that from 10 billion last august. it is a big increase. >> will this just be a short-term booster? are there fewer clouds given the regulatory of people that they have gone through? >> there are uncertainties on the horizon. the group has not gone public. they don't know what it will look like as they tried to proceed to the public markets. alibaba has had to make some pretty fundamental challenges in their business. they were using the muscle of their businesses in order to influence other companies.

but this is a buyback program that will run over two years. this is more than $75 billion. they are trying to take some of their extra shares of the market. >> we are not seen that big of a reaction in softbank. but there is a recovery in alibaba. also, tech investments more broadly. this would be a welcome relief in china. >> it has been a very rush -- rough stretch. especially for alibaba and $.10. this would be a vote of confidence in terms of --

what the companies think their shares are worth. >> that was bloomberg's asian tech executive, peter ahlstrom. it's get you a check of the markets where we are seeing a pretty steady session in asia. we have the rates markets on the back of the big moves in treasury yields. also, frantically pressing with a selloff in treasuries with historic dimensions after fed chair powell said he is going to raise half a percentage point. they are playing catch-up in the nikkei 225. the cost be also seeing some nice modest gains. here in australia, being so dominated by energy as well as

oil names. new zealand is a bit more muted. we had some pretty disappointing consumer confidence. 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.

>> we are getting some breaking news when it comes to china ever grand. their legal advisor -- they said when it comes to their services, a number of these units, ever grand and the associated units are delaying the full-year audited results.

this was just about the confusion and chaos. this was all expecting that delay. the shares will remain suspended. they were suspended before the start of trade on monday. this is all about a probe as well. this was trading on march 21, the controlling shareholder.

they continued to watch that next bond deadline when it comes to china ever grand there. >> let's talk about how futures in europe are trading after a roller coaster ride in the u.s.. we will start here on the bond markets now. we have the u.s. 10 year yield closing. this is the biggest one day jump since 2019. this was down about half a percent. this was the downward pressure there.

this seems to be sort of a stalemate right now. as commodity prices stay high and food prices are expected to rise, there it is. sanctions against russia should be expanded to prevent vladimir putin from accessing oil money. >> they are being discussed at the highest political level in ukraine. >> can you speak to us a little bit about the capacity of this?

>> we have enough capacity. we also understand that as soon as gas continues to blow, it is not just a matter of containment that russia is making. it is more about some assurance in terms of this power.

>> the russians are paying you for that transit. given the financial situation, the sanctions being applied, how does it work in terms of the payments to you? >> this is the initial part against russia. there are some important exemptions. that is why major russian companies can use this to get money.

that is why we are saying it should change. there are troops being withdrawn from ukraine. they can't get access to this money. >> the central bank is prepared to raise rates by 50 points. this is a more hawkish tone.

>> this is speaking on the first quarter. >> china is grounding its fleet of boeing 737 jets. the plane plunged 26,000 feet and just more than 90 seconds. aviation experts said that is highly unusual. they pointed to senior investigators who work with china. it is china's first commercial airline disaster in decades. japan is warning of a potential electricity shortage.

tokyo is urging customers to conserve power this week. this was to avoid rolling blackouts. the government is banning tax breaks to encourage mining cryptocurrency. this after crypto assets were steeped in india's recent budget. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. >> china's cabinet has pledged stronger monetary policy support while cautioning against flooding the market with liquidity. we are still on the lookout for

the promised policy easing. what is the pbmc waiting for? -- p boc waiting for? >> i think the policy will use further. i think they want to do the easing in a paste way. this is nothing new.

[inaudible] the policy will be coming. we will have more intensive signaling. [inaudible] in order to conserve policy space. >> there was bloomberg's chief asian economist. we heard earlier the announcement from china ever grand and its associated units saying they would be delaying the issuance of their full year of audited results. we have stock to be suspended. this will release full-year earnings.

coming up next, hong kong is laying out a roadmap from the covid zero measures that damaged business confidence. we will talk to a public health expert about the city's pandemic approach. . ♪

>> click the pandemic remain

severe and most measures will not be relaxed. but we will be following the following mission. the fa our government was abolished. the site embargo on nine countries. they represent baby steps. still lacking a real roadmap. were you encouraged by these changes? what more would you have liked to see? >> yesterday's announcement was expected.

what is still lacking is the long-term plan. what is the plan for when that happened? the triggers would have to come back in. there is a lot of uncertainty about the future. these these measures do represent the clear break from the covid zero strategy. >> i find it interesting, the case study that had a huge spike

in cases but the debts are some of the lowest in this part of the world. how do you balance that? putting that together, what is the ideal strategy? what does it look like? >> many of the countries -- this is something that is very important as. places like south korea and new zealand and hong kong come down to the fact that a very large segment of our most vulnerable people and in particular, the elderly remain unvaccinated. we see this on the health care system.

hong kong has had the unfortunate claim to having the highest mortality rate ever recorded to the pandemic. >> vaccinations don't stop people from contracting covid. that is what we know now. is really all about treatment? if that doesn't stop you from getting it, it proved the treatment. that way when people do get it as they inevitably will, that they don't die, you don't get sick. >> one of the realities right now it hong kong is because they have such a steep climb in cases, we are past that now. we are starting to see the number of cases come down. many of the people who will succumb to this virus have already contracted it. the focus really should be focusing on how we get better treatment to the people who need

it. one of the problems we are facing is that the health care system is really stretched thin. it has really struggled to keep pace. treatment is part of that. we just started to receive antiviral medicines in the city and we are trying to get there. we know that getting them to people quickly is critical for them to be effective. in a system that we are still not able to be able to probably triage the system. christ what about reducing the quarantine? we used to think that 7-14 days med says but now we are that you can spread the virus and your most contagious one or two days before you feel sick. maybe it is better to say why would you quarantine for 14 days? this is part of the quarantine.

relatively speaking, you will not be so transmissible as you were. christ previously, under the dynamic zero covid policy, the goal was to get to zero transmission. longer quarantine times were thought to be important in order to really get it to zero. as we are transitioning to a scenario where we may not be so extreme and getting back to zero, it means we should be able to reduce the quarantine. under the new rule, people will have to quarantine for seven days in a quarantined hotel and undergo a significant amount of testing. that should eliminate almost all of the risk. the extra week is not necessary anymore. >> that is a tough sentence for a lot of people to be locked up for two weeks even though it is the right thing to do. thank you so much. it is a dynamic situation, a tough situation.

thank you for joining us. up next, the market opens on the mainland and in hong kong following monday's losses. this is bloomberg. ♪

>> let's look at the latest

business/headlines. goldman traded a nondeliverable bitcoin option. a type of derivative. goldman also offers exchanges in futures trading in bitcoin and ether. berkshire hathaway agreed to buy this for $11.6 billion. this is a 25% premium over allegheny the closing price. the deal will be one of the largest in history. they have been putting more huge cash piles to work as devaluation falls. they are calling their activities extremist. policies were directed against russia and his army.

chinese developers say it cannot publish its. the already won profits are expected to drop by 85%. all of this is going until the end of april. we are just over a half hour away from the market opens. we have seen volatility come back. we are watching for a little bit more calm.

we see a little bit more positivity across the big china tech names. we will be watching that. we continue to see crude pushing higher for the third straight day. we will be watching for any more analysis when it comes to the property sector. we just heard from china ever grand that they won't be making their deadlines before the audited results. we will be delaying the issuance of those results for ever grand. we do see a number of other developers as well saying that they will be missing those deadlines. they cited the resignation of their auditor. the other thing we are watching for when it comes to ever grand is these bond talks.

let's get over to nancy with a bit more. the property sectors as well as the reopening in hong kong. this is the move away from covid zero. >> lots of things are going on this morning. we saw hot headlines on ever grand delaying the results. also, on the positive side we are seeing alibaba having a bit of a share buyback hike. these are $25 billion. these are the property

developers were really not benefiting much from all the measures coming out of the chinese government. we are seeing this kind of regulation easing a little bit. we are seeing plenty on the tencent and we chat situation. >> overly quick question, what measures do traders want to see on the policy front? >> as i mentioned, that is the most important sector in the chinese economy. all of the measures are not helping these distressed developers. their bond prices continue to drop. liquidity measures are really trying to help them with their debt restructuring. they have debt repayments demand. that would be really helpful to overall sentiment of mainland traders.

christ liquidity and more. that is it from daybreak asia, keep it right here for china open bloomberg market. this is bloomberg. ♪

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>> it is 9:00 a.m. in beijing and taipei. welcome to the china open. >> our top stories, bonds under pressure after jerome powell remains open to a 50 basis point hike if needed. china's cabinet pledging stronger monetary policy support for the economy