>> morning. we are counting down to the open. >> welcome. top stories. the u.s. claims vladimir putin fuels misled by russian military leaders over the war in ukraine and the impact on economic sanctions. >> talks set to weigh on trading sentiment in asia.

treasuries rise. >> baidu is the latest company to face delisting because of refusal to let the u.s. review its audit. >> let's get you straight to trading in australia. what a rally in the past days. a seven-the rally. this is the eighth day of consecutive gains for the index, seeing gains on the back of the huge commodities boom, but also a budget that came through yesterday that was stimulatory. we are seeing a rise of .5% at the start of the session. when it comes to the record high in august, we are 1.5% shy of that, the longest winning streak since december 2020 for trading in australia. the yield study, just under 2.8% from a watching downside being

led in new zealand, now down over 10%. south korean production crossing the bloomberg. industrial production, that number at 6.5%, upbeat on expectations of 4.5% and an acceleration from the 4.3% in the previous month when it comes to the seasonally adjusted month on month number, .6 percent, better than expectations, which were for a contraction of .2%, and also accelerating from that .2 percent earlier, so we have seen a bounce back the start of the year. >> a bounceback when it comes to u.s. futures. the s&p 500 falling for the first time in five sessions. we are seeing some upside, especially the tech sector, leading declines for the index, moving one person in new york. rising across the board with the 10 year yield, falling below that level.

wti under pressure, reversing gains, after the talks between russia and ukraine. >> interesting intelligence claims that the u.s. is making, telling us that the russian president is feeling misled by his military leaders over progress in the war in ukraine. take a listen. >> we have information that putin felt misled by the russian military, resulting in tensions between them. >> more, let's bring in our white house correspondent, so the idea he is not getting the full story because his military advisers are scared to tell him. what does that tell us about potential is in communication how the wars being waged? >> it might pour cold water on any folks who hope for a quick

end in sight, saying part of the reason the calculus was off to some observers is because they think vladimir putin is not looking at the same facts as other analysts, as he has surrounded himself by loyalists, fewer and fewer voices. the voices he does speak to are believed to be telling him either partial truth or something else, so you have the situation with the u.s. said this publicly, bit unusual, because they tipped their hand, and they don't do that unless they want to, so it is a statement the u.s. wanted out there. the backdrop is things seem to be going nowhere. a new announcement of aid from the u.s. towards ukraine, the questions around russian

redeployment and whether that is a tactical shift or the ongoing pace of the conflict, so a lot of questions, but basically the u.s. thing publicly they do nothing vladimir putin is getting the full picture from his aides as they are too terrified to say anything to the contrary. >> even when it comes to the economic impact of the sanctions, right? do we have any idea of what is to come on this front? >> great question. there is a hint there would be more sanctions. they did not say what that would be, but the most recent ratcheting of coordination to squeeze loopholes and increase the list of russian businesses, banks, and oligarchs the politicians who have been sanctioned by the u.s., so potentially if you're reading the tea leaves, you would assume

there could be that trajectory going forward, but we don't know. they did hint today at further sanctions to come. president biden speaking with president zelenskyy earlier today and did allude to that $500 million in new aid, direct government funding to keep employees paid and keep the lights on and keep the government going, the latest support from the u.s. to the ukrainians. >> that is our bloomberg white house correspondent with the latest. a bloomberg news analysis shows some of russia's wealthiest people have been spared from western sanctioned, leaving a group of superrich, powerful billionaires free to operate around the world without restrictions. you can read the story on the terminal and bloomberg.com. >> we are watching chinese adrs. we saw the downside pressure on the session today, which took the losses to this year to 16%,

this as china is facing revelatory oversight. there will be according to beijing authorities, a crackdown on tax evasion and content violation, and the big players in that area are these companies , and were bracing for market opens in china, because after the close, we saw the sec has added other firms to a growing list of companies that could get kicked off u.s. exchanges because of beijing's refusal to permit u.s. access to their audits. after the market closed, we actually had the sec chairman gary gensler casting doubt on any minute deal with china to avoid delisting. for the latest, let's bring in stephen engle. what do we know about this list? >> well, it seems as though, of course, this law passed in december 2020, holding foreign companies accountable back, is being enforced, and the sec is adding companies to the list,

about 11 names on the list, including the new provisional list, which now has of march 30 in the u.s., we have seen five new companies added, including baidu and others. also, an online brokerage platform listed in the u.s., another is a service company, and another company pharmaceuticals, listed in the u.s., and all three on this provisional list of the sec. they had 15 business days, so april 20, to respond to being added to this list, and claiming why they should not necessarily be on that list, and essentially the united states under that law that was passed in 2020 is requiring companies to make any foreign companies, but the chief culprits according to the sec are chinese companies as well as hong kong companies who are essentially saying that beijing,

beijing is saying they are under national security concerns and other company secrets and they are not allowing these companies to hand over their audits. the sec under this law must come essentially it says they must report their audits, or at least open the books for the previous three years. if they don't, they are added to the list and they could be subject to delisting within three years. gary gensler, you mentioned him in a let's bring up the quote. he is casting cold water on like elation and eminent deal might be happening between chinese authorities and u.s. authorities , essentially saying he does not have the power to have wiggle room. there have been thoughtful, respectful productive conversations come a but i don't know where this is going to end up. it is up to chinese authorities, and it could be a hard set of choices, according to gary gensler. haslinda: that is the latest. let's get the vonnie quinn for

the first word headlines. >> thanks. the china central bank boosting confidence in providing support following the worst covert outbreak since the start of the pendant. the pboc said it would be more forward-looking and will expand its program to smaller and rural businesses. economists cut their growth forecast for china. russia will lift the ban on stocks, removing one measure that limit market declines after a record shutdown. the bank of russia says equity trading hours will be expanded back to the regular nine hours. restrictions on the trading of securities by foreigners remains in place. the person who predicted the mortgage collapse sees the world moving closer to a similar meltdown. he says the global economy is facing multiple shocks, including inflation and the war in ukraine, and says these

issues were compounded by policymakers calling for conflicted solutions. >> as you point out, we are a standard deviation away from a black swan event for things like inflation, the u.s., and europe, and also major geopolitical shocks because of the war, and a much broader geopolitical depression. we are in a difficult situation where extreme things are happening. >> china's trial on spy charges starts thursday. she worked or a broadcaster before her detainment. all strain media reports that the trial will start at 9:00 a.m. beijing time. they argue that she supplied state secrets. she could receive a sentence of up to life in prison. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. >> still ahead, a conversation

on one firm linking investors with chinese startups. we will hear from goldman sachs and their outlooks. this is bloomberg. ♪

>> the richmond fed president is open to raising rates by 50 basis points and made, and he said that would depend on the strength of the u.s. economy. >>, and open to it. -- i am open to it. the question is how strong is the economy still look in terms of its ability to take rate

increases and how high is inflation? i am looking at those and we will make the call in may. >> do you agree with economists who say you cannot bring inflation under control until you get the rate above neutral? >> i think there is a chance that is true. two things will happen. some of these pressures, whether geopolitical or pandemic-era, we will get chips and cars at some point. the second thing that will happen is our rate increases and help that is being, how it is impacting loan markets will have an impact on expectations and on demand and inflation as well, so we will see how those two go, and as we get closer to neutral, we will make the call. >> earning now to the fx markets -- turning now to fx markets,

goldman sachs is not see an attractive risk-reward without an improvement for the growth outlook for china and europe. let's bring in that person. always good having you with us. what is driving the dollar now? >> the dollar is being driven by the fed, and that has been the case for nine months. the fed has been moving continuously in a hawkish direction. now they appeared to be on the cusp of a number of 50-basis point rate hikes. we think we will get two over the next two meetings, so the hawkish fed has been driving the dollar. we do think that the price to hike neutral is substantial, and other issues, capital for the relevance could be driving the dollar and we have a negative medium-term outlook than the last six to nine months or so. >> when it comes to broader

asia, you're seeing weakness and rates. is this the rate differential? >> japan and to some extent mainland china, the rate differential with the u.s. is playing an important role. the japanese yen is weak, and that country stands out uniquely in developed markets. the central bank is not moving towards monetary policy tightening, which is what we see in every other developed market central bank over the last year. china as well may be moving towards easier monetary policy and other rate cuts good that does not move the currency as much as japan, but that is the case, asia fx weakness reflects a simple matter of rising rate differentials with the u.s. >> there is also the commodities story with these exposed commodities, like the austrian currency. i know the new zealand currency is one of your picks.

you don't like the austrian currency? >> high oil prices can sustain growth and investment in the sector in canada, a road to a hawkish central bank keeping up with the fed over time, pretty good valuation, so canada has lagged the group in commodity prices and has further to go. australia, we have a dovish view on the central bank and think they will be slower to move than what is priced into markets. i am less enthusiastic about australia's export commodities in particular, more constructive on oil, canada and australia, and small differences. if it performs well, canada is my preferred pick at the moment. >> having to abandon parts of its bond purchasing program, we have seen the boj having to do that in the past. fundamentally, is there a sustainability issue in central

banks like the boj pursuing the yield curve control when you have the fed moving so aggressively in the tightening cycle? >> ultimately, it likely will be sustainable if we are in -- unsustainable, if were in an environment that inflation rising rates. at the moment, japan is in a unique situation. it has had more inflation, excluding food and energy, and is still deeply negative in the case of japan, but in a rising inflation environment generally with other central banks raising rates, then at some point, we should expect the boj to back away from yield curve control. we are not there yet. we think further downward pressure on the yen over the near term for that region, so i do think abandoning yield curve control is something that is possible over the next couple of years, given the inflation policy rate environment we are in globally. >> what do you make of the bank of england?

they were ahead of the pack when it came to hawkish moves. how are they doing now and what is that? >> the u.k. is an underperformance candidate locally. how you said it is right. the u.k. was ahead of the curve, maybe swifter to acknowledge it needed to bring domestic inflation down. inflation was extreme he high in the u.k. so maybe now a more balanced tone out of policymakers. it is not clear they will be going as fast with rate hikes is the fed or the bank of canada over the next few months. so we still have some local underperformance versus euro, which is rebounding at the moment on better news out of the russia-ukraine conflict, so some underperformance over the near term would be our best guess, given a more marginally dovish policy. >> always great to have you with this peer think you. thank you. thank you. coming up next, the u.s. is

expecting to make a major move later in its bid to accelerate the mystic production of key battery materials. we get the details next. this is bloomberg. ♪ ♪

>> this is "daybreak: asia." we are tracking the global supply chain crunch. top stories. tesla secured its nickel supply through a deal with vale. russia is a key producer of the metal, an ingredient in ev batteries. sources say president biden will trigger cold war powers to boost domestic production. the white house is said to be ready to add battery materials to the list covered by the defense production act. volkswagen planning to keep its

shanghai plant opened by asking staff to sleep on site. sources say they will also be able to run a closed-loop system starting on april 1. >> booking at the china covid lockdown, shanghai, here is a map looking at shipping activity in the region, covert restrictions and shanghai are country reading to a severe shortage of shipping containers. that may trigger a spike in freight rates in the coming weeks. bloomberg terminal users can read more about those stories in our newsletter. let's get more on president biden's plan to encourage the mystic production of critical minerals for electric vehicles. -- the domestic production of critical minerals for electric vehicles. he invoked cold war powers. this seems a strong measure here. why now? >> good question.

as you said, we expect president biden on thursday will invoke the defense production act and add a list of important battery metals, including lithium, nickel, cobalt, and others. why now? because we can see this becoming a serious probe for the u.s. lawmakers, the industry, and across north america, they have long grappled with the fact that china dominate supply chain for materials used in electric vehicle batteries, but increasingly in clean energy technology as well. it is a situation that has seen some pretty strong efforts so far at this point president biden saying it is time for the u.s. to try to take charge of the supply chains. the u.s. remains heavily reliant on imports of key materials, and

this step should help spur more domestic production of those metals, and should act as a catalyst for the entire industry in the u.s. >> how long does this catalyst take to have an effect? how long is the cycle of production? because it takes seven years to 10 years for a mine to get up and running. >> absolutely. absolutely right. yeah. that is true. the issue why this could have an immediate effect is companies will of access to $750 million under the defense production act , not a huge amount, but a lot of people expected could push congress to appropriate more funds. those could be used for not just constructing new lines, which would take at least a decade, but should boost productivity at

existing operations and can be spent potentially on upgrades to existing sites to help lift production, and at the same time, the money would be used to fund feasibility studies to find more metals domestically and take steps to develop new operations. >> let's check the business flash headlines. two banks reporting profit gains of more than 10% last year, as they recover from the pandemic, following strong growth from other china banks, although there are renewed outbreaks in a fragile real estate market. sources saying bp has reached out to firms in asia and the middle east as it tries to offload its russian assets. the energy giant has approached two chinese companies about the

planned sale of its 20% stake. the former governor of the reserve bank of india will join us to talk about the boj bond buying and what they need to do about inflation. that is coming up. this is bloomberg. ♪ so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now, there's golo.

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shery: this is "bloomberg daybreak: asia." we are counting down to the start of trading tokyo and seoul. in korea we have favorite industrial numbers rising 6.5% year on year, more than economists expected. the finance ministry will release its bond issuance plans later thursday, and on the corporate front, sm entertainment, sk innovation and craft and agm. we will be breaking to you live,

a new ceo is weighing the potential acquisition of shadow banks in the asia-pacific as it seeks to tap a more lucrative business with higher interest rates and we track the boj's relentless bond buying plane. haidi: a boj governor sticking to his guns when it comes to capping long-term bond yields even as the bank of japan launched a three day purchase program adding theme to the yen's recent slide. kathleen hays is here with more. is the bank of japan at winning this battle to maintain yield curve control? we keep talking about how sustainable this policy is when the fed is looking to aggressively tighten. >> so far, so good. the governor duggan his heels at the last boj meeting saying there is no need to move stimulus. they do not have to change anything because other central banks are raising rates. this is where they are. at the beginning of the week the

boj announced a three day want to purchase operation. the 10 year yield, capped at 0.25% when you look to the upside, it was pushing up in getting closer and closer, yen sliding as well. yesterday was day two, and the boj did two things to make this more dramatic. they did larger bond purchases, longer yield tenor. they came in earlier than expected, and the yield pushed up to 0.253% just going over the top. it closed around 0.221%. they did have success at least for the day. the yen surged a full percent against the dollar. as word got out that the governor was meeting with prime minister kishida, and what came

out of this was him basically saying i explained global economic conditions, domestic economic conditions. in answer to a question about their operations, he said that each market operation, bond buying operation does not directly affect for an exchange rate. he is downplaying to get that they are having by making it so clear to the world that they are not going to let their benchmark 10 year yield rise even as 10 year yields rise in the west. there was profit taking, people have the profitable side of that trade, there was conjecture commodity prices would not look so threatening. in the last couple of days the comments from the finance minister, the chief currency official saying he had talked with his business -- his u.s.

treasury counterpart that they are watching the exchange rate. they are going to keep things under control. shery: kathleen hays with the latest on the boj. let's bring in a professor at the university of chicago school of business. good to have you back, thank you for your time. how much longer will the governor be able to drive to keep the credibility of his policy when we are seeing they're going in opposite directions with other central banks? >> to some extent japan does not have the same inflation problem the u.s. does. of course [indiscernible]

this would be the wrong ton politico. to some extent the depreciation of the yen is helpful because it comes at a time of great uncertainty about growth. there is no reason to stop this unless it becomes unsustainable with markets making it impossible. shery: what will lead to that? >> if the bank has to spend enormous amounts of money in order to keep yields contained. after the bond market increases, at some point they may say this is too much, but i think they are far from that point. haidi: are you concerned about exchange rate volatility as a result of these policy moves and potential detriment to growth?

>> for japan, it is helpful. the depreciating yen at this point, at a time when the war in ukraine yields higher commodity prices, all negative. for japan, one concern they have is being accused of being a currency manipulator. this is just normal monetary policy. haidi: in addition to already existing inflationary pressures you have written at length about this idea of economic weapons being used in war. can you give us your view as to

the sanctions being applied at the moment and whether you think the balance between geopolitics and economics is equal at the moment? >> to some extent to resort to economic sanctions [indiscernible] preventing or stopping the work in ukraine. they have widespread damaging effects not just in the country against which the sanctions are applied, but over time as countries take lessons from this and react, then other countries might start thinking do i want

dollars and two euros if those are subject to sanctions. maybe i want to diversify. the point i'm trying to make is, yes, yields are a new form of punishment, but we also should think about longer-term effects. once the war is over we need to think about what needs to be done. shery: the idea of alternative global payment systems, especially with china trying to read the international lines, the chinese yuan, out seasonable is that ended what time frame, because we have seen a lot of restrictions on that side as well? >> there will be a force to bring together countries that are sanctioned but also

countries that fear potential sanctions or want to have a diversified payment system available to them. my senses there will be a greater urgency over time. china will try to expand its independence on swift and bring in other countries so there is some clarity. i presume countries around russia would be interested in participating. haidi: with the extraordinary amount of pandemic support spending that we are seeing globally now rising yields, is government debt burden something we should be increasingly worried about? >> sure, because in addition to

the debt that already exists, in response to economic crisis, for example, a number of countries are being forced to increase their spending. for example, in europe, countries have softened the blow on energy costs for households. so we already have high levels of debt, rising interest rates of debt service, but the physical impulse may have to be relied upon both for the globe but also new spending, such as military. haidi: raghuram rajan, always a pleasure to have you and we thank you for your time. let's get you to vonnie quinn. vonnie: the u.s. claims web

intelligence suggesting vladimir putin has been misinformed by divisors of the war in ukraine. according to the white house, advisors of the russian president are said to be afraid to tell putin the truth about the performance of the military at the effect of sanctions on his country's economy. and that is creating tensions among top officials. president biden plans to invoke cold war era powers to encourage a better production of critical manuals for batteries. sources tell us the white house is adding materials to the list of items covered by the 1950's defense production act. the move would give mining companies access to an extra inventory of materials in order to supply batteries. the u.k. will withdraw top judges were among's final court of appeals. a foreign secretary sees the situation as having reached a tipping point, with the systematic erosion of liberty and democracy. the u.k. ascent members of the

supreme court to hong kong since it was return to china in 1997. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: coming up, the former hong kong stock exchange ceo joins us to discuss his later venture. that is next. this is bloomberg. ♪

shery: drowsily, the former head of on's stock exchange has raised $70 million from investors including a local tycoon in the latest funding run for his new venture micro connect. a company platform that links international capital to small businesses across china. it has raised a total of $120 million over the past year. joining us now is charles li. good to have you with us, thank you so much for your time, and congratulations on the capital raise. tell us what you plan to do with it? >> thank you, shery. we are starting to deliver on our system. we are trying to connect to

small micro businesses in china. this is different from the traditional stream where you pick up stocks. we are finding more stores, entrepreneurs. the funding will be to scale up the partnership. the platform technology and also the market infrastructure. this is a huge market. they're doing it in a different way through daily revenue contracts there it we are not investing them as a creditor or in equity measure but we are investing in new instruments. we are taking a portrait of revenue digitally every day, and through our automatic repayment mechanism, which is really a

banking system. shery: does that mean there is less risk when investing in these very small companies? my question is what happens in this very uncertain environment with covid on zero policy with lots of restrictions, if these small businesses do not make it? if they go bankrupt? is there any risk to what you are doing? >> there are risks in everything, but the problem is we do not yet have today, the traditional wall street model does not have the -- to capture life-size companies. we all assume everything is a tree that will live for 100 years. we are investing in small plants that started in the spring intimate and in winter -- an end in winter. we will be capturing growth

opportunities for many small companies and choose the best in class. they tend to be extraordinary into growth healthy companies, but sometimes they have a lifecycle of four or five years. the key is you have to find ways to collect your returns through this system called a daily revenue contract. haidi: what is for the response from international investors? and how do you plan to sell this concept to them? there was a crack down on micro lending platforms, on the back there was a lot of concern about how disconnected and inward looking china is with all of these lockdowns. >> this is fundamentally different from what has been attempted before. almost all micro many businesses are credit. it is highly risky for the

little guy but more importantly for the credit providers, the risks and return and reward ratio is just not there, because the upside is nothing to do with the credit provider. for us, as long as we can capture larger holdings of the portfolio growing at high rates, and we can tolerate a bit of a failure rate, and the idea is the numbers you are able to invest in. whether you succeed or not is not your ability to find the best edge growth with a big chunk of money. the way to succeed is to be able to deploy to hundreds of thousands or millions of opportunities and to make sure on a portfolio level you're making strong, superior uncorrelated distributed diversified returns. the short term will likely be very high.

haidi: charles li, the broader economy and the broader markets, talent pool, retail, so much downward pressure as a result of pandemic restrictions. do you think the limited easing of restrictions we have seen so far need to be shifted further for a true recovery? >> i think we are seeing a light at the end of the tunnel now. this is probably one of the worst periods hong kong as to go through, but i think we are seeing a light at the end of the tunnel. people are looking forward to greater restriction lift, but in the end it is the direction that we will essentially be out of this. there are a lot of challenges, and also, the bigger challenge

lies ahead with china continuing to adopt a different strategy, whether or not that strategy will trigger some transformation in the coming months and years. it has opened a connector between the rest of the world and china. a difference from a few months ago where we were locked into both sides. we are close to lifting restrictions and to become open and connected with the rest of the world. china is a huge market for hong kong and a huge part of the economic activity. by 2022 it will be a challenging

year, but going into the second half we should be able to see a chance of opening on both sides and toward the end of the year and hopefully we will be back to normal. it will take a while for us to gain back momentum that has been lost. haidi: these are formidable challenges for the next chief executive. carrie lam is not confirm whether she will be running. do you have a preference or wish list in terms of what the next chief executive should be prioritizing from a policy point of view? >> i think the decision is coming up soon, literally and days and terms of the nomination. i-- nomination period. we will wait until we see who puts their head in the rain and then we will make a judgment. we hope the next will have the

best interest of hong kong at heart and have the leadership skills and political aspirations and sensitivity to lead this important city. it is not easy because it has been given -- sometimes contradictory to each other, but that is what leadership is about. solving conflict and bring everyone together. shery: charles li, it was good talking to you. we have breaking news of the moment, we are getting to ben's duster reduction, the primary number for february month on month pricing for the first time in three months. it is still a small a contraction that economist at expected of 0.1%. year on year, rise of 0.2% a much smaller than expected and following a contraction at the previous month. not surprising given the month

of february the regions still under a semi-state of emergency accounted for 90% of the country's gdp. plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: a check of the latest business flash headlines,

china's biggest offshore driller is planning share buybacks, a dividend guarantee after reporting record profits. their income climbed to $11 billion in 2021 up for me three or low previously on rising production. sources tell bloomberg they are considering a $3 billion sale of its portfolio that could kick off in the next few weeks. a chinese giant giving a sales outlook for the 2022 period after their income grew in the so as to five years. this is a better revenue projection the last year. adolescents are optimistic. mouai says it was keeping prices for this year. shery: our guest joins us to discuss how the recent lockdowns in china have disrupted the

economy. someone says they do not seeing sign of panic and risk appetite remains tight despite the headwinds from investors. market openings in seoul and tokyo are next. this is bloomberg. ♪

shery: welcome to "bloomberg daybreak: asia." i'm shery ahn. haidi: i am haidi stroud-watts. age's major markets have just opened for trade. asian stocks are set for a cautious start, investors await pmi data from china and continued to assess the war in ukraine. the u.s. claims vladimir putin feels misled by russian military leaders over the invasion and

effects of economic sanctions. baidu is the latest chinese company to face delisting in new york because of a refusal to let the u.s. review a list of its orders. shery: japanese stocks unconvincing continuing to retreat with the japanese again moving 0.2 of 1% against the u.s. dollar as the bank of japan continues to purchase more jjb' s, we are watching the 10-year gilts as it has retreated from that upper-level limit. we have production data out of japan rising for the first time in three months, but really missing analyst's expectations. take a look at the market opened with the kospi as industrial production numbers came in stronger-than-expected, not surprising given we had the huge rally in semiconductors and electronics, the kospi mute at the open, the cost act -- k

osdaq under pressure after we saw the rally in the highest it about two weeks giving a more risk on sentiment in the previous session, but that not transiting for today's session. haidi: what is translating is to continue to in australia, eight straight days of gains, we are just about 1% away from the record high setback in august. we are seeing leadership across materials and energy as we see the resilience when it comes to commodities and grid markets. this is the biggest rally we have seen since december 2020, at a broadly we are seeing the reassessment of geopolitics, but for now good upside when it comes to trading in australia. new zealand dollar extending losses, a carrier seeing serious downside after the recapitalization plan was we announce. taking a look at s&p futures,

looking what is at this point but we have seen a bit of a pullback when it comes to some parts of that yield curve. new york crude lower about 0.6 of 1% as we look to reaction from opec+ on the correct dynamic of the markets. quite a bit of up and down and it comes to the energy market after the losses over the last couple of sessions. gold is creating steadily. part of this when it comes to the great story is the idea of potential demand destruction coming out of china lockdowns, changi adding 553 local cases of covid. we are seeing fairly high numbers with the staggered lockdown continuing in the financial hub of shanghai. shery: that is adding to global uncertainty. our next guest says he is not

seeing signs of panic despite this instability, and risk appetite remains i. let's bring in daniel gerard. we are seeing risk aversion in today's session, this is not surprising given what we are seeing in the ukraine war and covid cases in china. >> thanks for having me back, it seems to be the case, we are definitely not seeing panic signs out of our institutional customers speaking to clients. i would not necessarily say it is high risk appetite but is brilliant -- boy in -- buoyant. there are not that many alternative still to areas of

equity markets. that said, it is been about more selectivity, finding places where earnings and profitability should john, where you get inflation sensitivity, not pure value versus growth anymore. shery: the bond rout also provides opportunities. >> for sure, and that has been one of the areas where we would certainly cautioned against getting too bearish at the long end of the curve. especially in the u.s., we have seen lots of investors who will come in and search for bargains at the long end, not just institutional investors but foreign governments as well as commercial banks looking to pick up some yield. this is really a move where any aggressiveness by the fed as just flattened the curve. there is not much expectation

long-term rates get arise that much. haidi: what are your views on china at the moment? in addition to dealing with the slowdown of natural growth we have to lockdowns, the ongoing property scenario, tech and other regulatory crackdowns as well. is there enough in that market in terms of discounts to be interesting? >> i think it is a bit nuanced. the three or four things we need to think about and china, one is the credit situation. this is a macro driven market especially for investors looking for the equities trade. we are seeing certainly improvement not just in local government provincial credit but in private industry as well. we sought more signs one. last week and this week. the covid situation, we need that to get better, we need more consumption as well as a privity

to quantify the regulatory side. all of that means we will see less of a premium put on earnings. earnings growth's are key and they are's lavish -- are slavish. there is no need to be early here, but if you were not, you are looking for long-term opportunities, this is the time to be searching for a bottom. i do not think you can get much worse. haidi: energy exposure, is that still something that is a good play in asia? it is not easy to get exposure in that part of the world. >> is not. i would say it will be one of the main driving themes. think about where energy exposure might hurt you in asia. this is one of the reasons we are perhaps a bit stronger on australia than others on

commodity exposure and to the curve as well. australia has been able to keep a steeper yield curve relative to other markets, and that means that financials and materials should actually do quite well. i think that will continue, and as we saw from australian treasury and the budget this week, there is a strong if not conservative outlook for growth ahead. shery: we are seeing downside pressure on japanese equity markets despite the fact that we have this incredible weakness on the japanese yen. one of the prospects for this market? >> this is another tough one. i think about the japanese market as we have to divided in two. there is going to be the cyclical side. japanese cyclicals look better. there is the entirely other side of the coin on japanese equities, which is the

consumption side. higher inflation is not coming from the right places, higher transportation costs, taxes themselves, so that means the consumer side and perhaps financials will be under pressure. the other cyclical part of japan for me as taken over as a new favorite spot outside of the u.s. in terms of cyclicals. haidi: august great to have you with us, daniel gerard. let's get you to vonnie quinn in new york. vonnie: don't's central bank is about to boost confidence and provide more support to the economy following the worst coming up rick's interest in the pandemic. as of this policy meeting, pboc said it was more for it will expand its rimini program to small and rural businesses. economist got the forecast for china on covid lockdown concerns. the richmond fed president says he is open to a 50 basis point rate hike in may.

he thinks it was rates may have to go above neutral in order to bring down u.s. inflation at the highest level in four decades. >> i am open to it. we will make of this decision will be get to the meeting in may. how strong does the economy look in terms of its ability to take rate increases and how high is inflation persistent? vonnie: russia is cutting down on local stocks thursday, removing one of the measures that helped after a record long shutdown. the makeup brushes as trading hours will be back to the regular nine hours. restrictions of trading of securities by foreigners remain in place. jenna's trial of a television anchor start. australian media reports court

proceedings will start at 1:00 a.m. beijing time. prosecutors will argue she provided state secrets overseas. that carries a sentence of up to life in prison. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. haidi: breaking when it comes to oil, biden is waiting -- waiting a massive release of oil when it comes to inflation. we are curing president will be speaking on efforts to reduce energy prices on thursday. the u.s. may be releasing one million barrels per day for months. this comes after two large releases of oil. we have 50 million barrels in november, another 30 million barrels in march following russia's invasion of ukraine. it is not clear whether we will see an effect at prices at the

pump. we are now curing the biden administration is weighing under the plan to release roughly $1 million -- one million barrels of oil a day. all of this according to people familiar with the matter. the white house said it is statement president biden will speak on thursday about his efforts to get energy prices lower and lower gas prices at the pump for american families, for which it blamed on russian president vladimir putin. all of this coming at the same time as a diplomatic push for the international energy agency to see global coordination of the release of reserves. shery: shery: look at crude prices, we had oil up in the asian session after we sought losses in the new york session, completely reversing those

gains, now down more than 1% each for uti -- wti brent. barclays asia-pacific joins us to discuss our recent lockdowns in shanghai have impacted ton's economy. the u.s. claims it as intelligence president putin has been misinformed about his military's progress in ukraine. this is bloomberg. ♪

shery: will prices continuing

its move downward as we have breaking news the biden administration is planning to release one million barrels a day from u.s. reserves. for several months, this according to people speaking to bloomberg and the total release could be as much as 180 million barrels. this coming at a time when we continue to see prices surging for oil, gasoline as well, the white house may make an announcement on the u.s. with these as soon as thursday. we are seeing oil prices continuing to move aside. haidi: let's get some more on this, our editor joins us now. does the fact we are waiting to hear at the president talk about this, does this indicate just how big a headache inflation has become for his administration? >> absolutely, not just inflation but a particular gas prices are politically sensitive

in the u.s. administration has been under pressure from a variety of fronts to do something to get -- bring down the price of gasoline consumers are facing. there are calls for them to draw more, and this would provide a more immediate impact by releasing up to 180 million barrels of oil from the strategic petroleum reserve that would reduce some of the price pressure that voters are facing. shery: this of course as we are seeing no breakthrough in talks between russia and ukraine. >> at this point there has been no breakthrough. russia said it is repositioning troops, but for the most part the u.s. and its allies view that as simply repositioning them to concentrate on eastern portions of ukraine so that they can consolidate what gains they got that there. there is been -- has been no

actual progress on talks concerning some kind of settlement. haidi: if the repositioning of the overtures we have had will be tactical, will we see more sanctions? >> the u.s. and its allies are both talking about additional steps that can take to try to put the economic squeeze on russian. there are a number of nations that are proposed sanctions and other restrictions since the assault. invasion, but there is a commitment that they are going to further expand the enforcement of those measures and perhaps bring additional sets that can be brought to bear to cut russia off from american and european economies. shery: our editor there with the

latest. on oil reserves, not to mention ukraine, look at european futures opening of the asian trading session right now. we have seen european stocks falling in the previous session, not surprising given that we have seen fading optimism when it comes to ukraine i fit russia docs, but also that inflation when it comes to germany and spain, highlighting the risk to the economic outlook of the region, energy and mining outperformed in the previous session. we are seeing a mixed picture. someone who predicted -- the chairman and ceo was speaking to bloomberg's tom keene. >> i think it is going to be very hard for the fed to engineer a soft landing.

i think the fed is not close to getting 1.8% at the end of the year. and then you have two choices. either you tightened monetary policy, which could cause a recession, or you wake out -- wig out because you were worried about [indiscernible] there connected and you may end up not doing as much. you have to choose a recession or expectations. >> i would love to end this with you because it is always so constructive. you and i were at a bar once in dollars and we were talking about four deviation standing --

standard moves being a shock. seven standard deviations, india, it looks like six standard deviation move over the long term trend of italy. what does a society do with that? >> it is already a black swan event from things like inflation. in europe, major geopolitical shock because of the war. china and its effective allies, china, iran and north korea will challenge the u.s. i think this is only the first outlook of this cold war 2.0. we are in a difficult situation where extreme things are happening. haidi: the chairman and ceo

roubini there. bloomberg has learned of tess's secret deal to secure nickel. we get more on that scoop next. this is bloomberg. ♪

haidi: let's take a look at oil, seeing big moves after the report we will be hearing from president biden on thursday talking about energy supplies and that the u.s. is considering a massive release of oil from strategic reserves to combat high prices we have seen. we are hearing according to people familiar with the metal -- the matter the potential of one million barrels release per day. you are seeing a drop in rent of just over 3%, new york crude

dropping nearly 4%. taking a look at the 30 day actual volatility, since march, we have seen levels at the second-highest at about 13 years. this is potentially a game changer for pricing that we see. shery: let's discuss implications without energy and commodities editor. we have an immediate reaction in oil prices. i wonder how sustainable this will be. >> what traders, what people in the market will be weighing is the impact of this move to ad to supply against some of the demand picture we are seeing. biden has been it pains in recent months to counteract the impact of higher gas prices. what we have seen previously in the last couple of months is

that the u.s. has allies that are also active. we have seen coordinated releases of other nations when their own strategic petroleum reserve. it will be interesting to see if this is the u.s. alone or we will see other big consumer nations take action. we have the opec+ meeting later on thursday. they are expected to stick to that plan to add more supply into the markets. the signals from here one would have to assume are for the kind of price gains we have seen, for those to be at least contained. haidi: we see this broad scramble for resources, you were talking about metal or crude. we are hearing tesla has secured a supply deal. >> that is right, myself and my colleague reported in the past couple of hours on this, tesla,

like all of the electric carmakers, they are very concerned about nichols specifically. it is crucial to the kind of batteries that power electric vehicles long-term. nickel has been in focus because of those recent wild price swings, which have underscored the potential risk to carmakers. tesla has been ahead of this, it has been securing deals for the past year. some of those we have reported on, also the operators of the mind in the pacific. what is not been disclosed is the deal with vale and it shows how far ahead of competitors tesla is even when it comes to securing materials from competitors. haidi: david stringer there with

the latest rest. china, the covid outbreak escalating, citywide lockdowns adding to the pressure. we get the latest pmi readings if you're a small business, there are lots of choices when it comes to your internet and technology needs. but when you choose comcast business internet, you choose the largest, fastest reliable network. you choose advanced security for total peace of mind. and you choose fiber solutions with speeds up to 10 gigs to the most small businesses. that's virtually everywhere we serve. the choice is clear: make your business future ready with the network from the most innovative company. comcast business. powering possibilities™.

haidi: -- shery: this is "bloomberg daybreak: asia." we are expecting china's pmi numbers out in the next few hours. covid measures will likely push the economy into correction. yvonne man is here with the preview. what are we expecting? >> were with a 9.84 manufacturing pmi, the first contracted we have seen in china but be have seen the recovery path being derailed by the lid

is covid measures. still remain above the 50 line, 50.3 is the guesstimate, easing given the covid measures we have seen. the biggest drag that is leading activity is shenzhen, because it makes up 2.7% of gdp, the weeklong shut down in production hurt supply james in the impact could be felt beyond just the province and beyond china as well. the key question is going to be manufacturing is no longer going to be the offset for growth given consumption challenges we have seen amid covid measures, and it seems literally -- limited now the factories can perform what it comes to the external demand picture. we saw growth is due 10.1

percent, still double digits, but the slowest pace where seen since january 2021. add shanghai to the picture now, that will make the first quarter cloudy in terms of the outlook. look at how important the city is to the gdp. it will be quite challenging, companies slashing their growth forecasts. the first quarter of these covid measures could hit the growth rate by 1.8% points. ubs saying how long-lasting these restrictions could be. growth for the year could be around 4%. haidi: on the earnings front to in china continuing to come through, but there are challenges that are mounting. >> hence we saw it reiteration from the pboc about supporting the economy as well, is the market going to take that with

as much weight this time around? when it comes to 2021 we saw a good recovery story when it comes to the banks, icb posting some of the best gains. that is the best we have seen since 2012. joining the likes of bank of china that reported the best proxy games -- profit gains in a decade. the 2022 outlook seems murky now when you look at the domestic demand picture. given china's wimmer ties with russia and the resurgence in covid infections. profit growth could look more into the 5%, 6% more balanced level moving forward. jeffries analysts saying when it comes to chinese bank earnings perhaps we reached a peak in 2021. haidi: yvonne man, let's get you

a check of crude futures extending the decline. this is what we are seeing the reaction to the report that the biden administration is way a serious plan to release one million barrels per day from strategic reserves over the next several months, down 1.7%. at one point we were seeing it extending a decline of more than 5% in response. the recent low for the may contract is $98.84. any lower than that we could see trimming as we look ahead to what opec does. u.s. equity futures looking positive, s&p futures up by just about 0.25 of 1%. we continue to see diminished hopes of a cease-fire and compromise, nasdaq 100 futures

looking robust and the dow in positive territory. interesting to see how the energy sector reacts. we are expecting president biden to speak on thursday. let's bring in our chief china economist. great directly with us. part of the crude demand story is bent the fear of demand destruction from china as a result of these lockdowns. how concerned are you about the economic impact of beijing adhering to covid zero? >> china's zero covid policy in the last two years suggest that the deeper the lockdown -- the government factories have

been prioritizing production. the latest lockdown will be similar. a lot of production and manufacturing are still running as normal, and as long as workers are confined within the factory and use regular testing. haidi: the problem is the lockdowns come at a time with her was already structural weaknesses in the economy. is there more worry when you look at the fragility of the property market, the fragility of the regulatory crackdowns as well? how much downside risk is there to that 5.5 percent growth target? >> clearly, china already --

this market a call and we had this forecast for the year, 4.5%. because of the can can you deteriorating in the chinese markets most of this year. the latest lockdown, particularly in the larger city and also financial trading, clearly the economic impact would be significant. shery: we are expecting official pmi numbers in less than an hour. what are you expecting, and how reliable and economic indicator for the future outlook of china is this data set? >> for march pmi we have a

consensus forecast as we expect seasonal rebound from february, despite the lockdowns. production will largely be recouped after a period of disruption. particularly, a variety of sector and raw materials, the operation rate, including auto, tech, these are all approaching rising operation rates in the market of march after the chinese new year period. there is a chance we could see a slave better pmi. shery: we see big moves in the oil space, right now headed down given the recent news that the biden administration is releasing more reserves. still about $100 a barrel that

has been maintained since was's invasion of ukraine. how long until janet raises oil prices? >> -- china raises oil prices? >> [indiscernible] every percentage point it grows $10 and rising oil price. a six percentage point in ppi inflation. i think we take comfort with cti inflation below, ppi fell to eight month low. obviously there is an unavoidable growth impact, 20% oil and 10% gas, 60% coal, but

coal prices have been on the rise. shery: very interesting, jian chang very good having you with us. let's get to vonnie quinn. vonnie: the u.s. says they have intelligent suggesting bit of a pollutant has been misinformed about the war in ukraine. according to the white house, advisor to the russian president are said to be afraid to tell the truth about the performance of his military and the effects of sanctions on his country's economy, creating tensions among top officials. opec+ may exclude oil production estimates provided by the international agency -- international agency. the move would change the composition production estimates that appear into the cartel's monthly report used to gauge compliance on quarters. president biden is to invoke cold war era powers to increase

production of critical materials were batteries. good sources tell us the white house press led by r.i.m. interest list of items covered are 1950 defense production act. the move would give mining companies access to extra $170 million access to additional dollars. -- a foreign secretary sees the situation as having reached a tipping point, with a systematic approach of liberty and democracy. the adjacent members of its supreme court to hong kong since it was returned to china since 1997. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. haidi: let's turn to live pictures outside a courthouse in beijing where the trial of an australian television anchor on spy charges is due to begin. she worked for state

broadcasters before her detainment in august 2020. shery: australian media reports court proceedings will start at 9:00 a.m. beijing time. prosecutors will argue she supplied secrets overseas, which carries a sentence of up to life in prison. haidi: let's look at markets this thursday session, we have volatility coming through when it comes to the energy sector. this report of the condition of potentially a significant amount of oil from strategic reserves to the biden administration to the tune of one million barrels a day is seeing ricocheting price action when it comes to the energy sector. nikkei225, downside about .25 1% but we are seeing robust gains out of australia with eight straight days of gains. we are still down by over 1.3%,

a lot of back-and-forth, a rebound after an 8% loss over two sessions. as we await to hear from president biden speaking on energy supply inflation on thursday, we could see more volatility. a lot in play as traders have been reacting to demand-side implications of shanghai and other chinese cities and lockdowns. we have a lot more when it comes to "bloomberg daybreak: asia." this is bloomberg. ♪

shery: taking a look at oil prices, they continue to fall. we were at around $107 before news by bloomberg to president biden is considering a massive release of oil to combat rising prices. we have seen prices stay above $100 a barrel given the ongoing war in ukraine inditex by russia. for more we are joined by su keenan. this is sending oil down. >> is unclear at this hour if biden is going to make such an announcement. we know key will speak to inflation and energy and helping get more materials for electric batteries to power electric

cars. in terms of the release, what sources are saying could be discussed is probably one of the biggest releases we were talking about. this would be 180 million barrels in total, one million barrels a day for many months, so this far exceeds what biden has done in the past, and it will be part of a coordinated release with the international energy agency, in which other countries would also be releasing from their reserves. we talked about japan and other countries doing this in the past. if we look at what biden has done in the impact on the market, many would say it has relatively been no. --null. prices of only going higher, and in march the biden administration released 30 million barrels at the start of

garza's invasion of ukraine. many analysts point out when you were talking about 50 million barrels per day, that is less then what small countries use. it is like taking a cup of water and dropping it into the ocean. this will be 180 million. it is not clear what difference that would make given geopolitics, and the new demand equation. we have demand coming out of china with the lockdown and concerns about the impact that it might have here. haidi: a lot for opec+ to be thinking about. >> opec+ meets on thursday, so it is interesting, the timing of this announcement or the timing of what that biden is weighing such a release. the biden administration has

been behind-the-scenes for months proceeding russia's invasion of ukraine trying to pressure opec+ to put more oil on the market. the biden administration not only has a concern about the energy situation, but also a big political concern about inflation at multi-decade highs. opec has been pushing back on that going into this meeting where they are expected to improve a hike of 4000 barrels a day. there is also concern there is conflict growing between the iea and opec allies in that they are wanting to divorce their projection from iea's, and that allows them to more control what they see as the future picture of oil. they maintain a think there is more than enough oil on the market to meet demand. shery: coming up, baidu groans

adjoining -- joins a growing list of companies that make it kicked off -- this is bloomberg. ♪

shery: here is a check of this

business flash headlines. sources tell us bp has reach out to state-owned firms in asia as it dries to find a way to offload into question assets. the energy giant a citylab approach sinopec and trident national petroleum -- try not national -- china national petroleum. it is understood the efforts are being hampered by the grainy work. the company will continue its long-standing business in the country. the giant as wrapped up a review of its shareholding in two large russian firms and wider trading operations in the company. current contractual obligation while meeting executive requirements. china's biggest augsburg driller is planning share buybacks after reporting record profits. net income climbed to $11

billion up from a three year low previously on rising production and prices. sources tell bloomberg cnooc is considering a sale of a portfolio that could kick off in the next few weeks. haidi: let's get you look at the situation when it comes to crude trading in asia. we are seeing energy names when it comes to equities seeing downside to, reversing earlier gains. we are seeing new york crude better than what we saw. wti up by over 5%. back from those losses just about 0.7 of 1% on news the u.s. is considering tapping its reserves again, this time potentially massive release to tackle rising inflation and energy costs. we are counting down to the start of trade and hong kong

just about half an hour. investors will be weighing the risk of delisting for more chinese firms. let's get over to our asian stocks manager. the impact of the latest sec china headlines on tech, how will that be felt today? >> is pouring water on any looming deals and he hopes for the chinese regulator will be dashed. that will not impact the negative tech rally. after the big rebound, flatlining. investors are wanting to see more concrete measures. we are seeing the cost of options, a hedge.

we have seen the biggest cut since july of last year. shery: what about the property sector, what would you be watching that we have results not to mention a statement by the pboc? >> results were positive. the housing sector will rebound, but i think overall, all of the news coming out overnight of state council and pboc's support of the economy did not mention the property sector. that is something that people really pointed out. if you look at the share performance, all of the sector jumped yesterday because of incremental news coming out on the sector that it was really driven by short squeeze.

we are seeing a diverging performance week during the stronger ones versus the weaker ones. shery: our asian stocks manager with an outlook on what to expect. u.s. futures rebounding earlier in the session. we have downside pressure but up 0.4 of 1%. offshore yuan not doing a lot at the moment we are weighing official pmi numbers, that the expectation is for contraction. taiex futures pointing higher. haidi: we watch how these energy stocks trade as we get into the start of trading in hong kong and china. you spoke earlier about these oil prices to the downside or upside would mean for the chinese economy. we are continuing to see downside despite chinese oil majors reporting robust earnings

on account of higher prices, we are seeing to retracted would it comes to the retreat in crude, the u.s. considering releasing one million barrels per day over the next several months. coming up. lots more to come. this is bloomberg. ♪

david: this is my kitchen table and also my filing system. over much of the past three decades, i have been an investor. the highest calling of mankind, i've often thought, was private equity. and then i started interviewing. i watch your interviews, so i know how to do some interviewing. i've learned how leaders make it to the top. >> i asked how much he wanted. he said 250. i said fine. i did not negotiate with him. i did no due diligence. david: i have something i would like to sell. and how they stay there. you don't feel inadequate now being the second wealthiest man in the world, is that right?