haidi: good morning. we are counting down to asia's major market open. shery: welcome to daybreak asia. our top stories, asian stocks and bonds sent to come under pressure as investors digest the odds of a swift cut in the fed's debt holdings. the u.s. and allies plan further russian sanctions, including a ban on oil fti to punish the kremlin for alleged war crimes. and washington says it is not

seeking a divorce from china. our exclusive conversation with trade representative katherine tai is just ahead. take a look at u.s. futures, holding on barely to some gains early in the asian session. this after we had the s&p 500 losing ground, being led lower by tech. we had the more hawkish commentary coming from the fed government. that sent treasury yields higher with the 10 year yield rising for a third session to about a three year high. that sent the dollar higher to the one-week high. pressure on commodities including wti which is losing ground in the asian session. we are seeing it now at around $100 a barrel despite the fact we could see potentially more sanctions against russia. haidi: it is really federal reserve hawkishness pit also increased rba hawkishness when it comes to the start of trading in the asian session. the prospect of further sanctions on russia, implications for inflation and

the global economy also pushing risk sentiment to the downside. futures looking like a downside of over .5% when we get into the cash trading in about one hour. the aussie dollar still holding onto most of it gains. it was trading over $.76 the we are just under that at the moment but still quite a bit of strength for the best-performing g10 currency of the year. the big move when it comes to the 10 year yield, jumping to 292, the highest since 2008. this comes after we saw treasuries slumping. the fed governor calling for early rapid reduction of the balance sheet with esther george saying fist -- 50 basis points must also be under consideration as well all this adding to the rba dropping is language around patience, and that's all the start of that being dropped across not just 10 year about three year as well. the three year yield rising about four basis points to over 2.5%.

new zealand equities trading to the downside as well, about .75% softer. shery: all of this coming one day ahead of the release of the minutes from the federal reserve's march meeting. the person in line to be number two at the central bank calling for faster balance sheet reduction to help fight inflation. kathleen hays is here with more. how important is it that lael brainard is in line with the fed's actions? kathleen: very important. she has been at the board of governors for many years. she is in line to be the vice chair, the number two at the fed that jay powell's left-hand, depending on who is on the other side. i get that would be jong williamson. anyway, let me get to the point. she is an important person to hear from. for her to get on board with having to move aggressively to fight inflation, she said the task of bringing down inflation is paramount for the fed and she

is clearly on board with starting to reduce the balance sheet which also reduces stimulus at the may meeting. let's listen to what she had to say earlier and prepared remarks to the minneapolis fed. >> given the recovery has been considerably stronger and faster than any previous cycle i expect the balance sheet to consider -- shrink rapidly with significantly larger caps in a much shorter period than the maximum caps compared with 2017 to 2019. kathleen: a very important point she made is the balance sheet reduction, when you buy bonds, you stimulate the economy, when you let them run off and reduce the balance sheet and you sell bonds, you are then reducing stimulus. so it will help back up, help add to the tightening rate hikes will do. the san francisco fed did not say much about this, but also said the fed could start the reduction in a couple weeks. esther george in an exclusive

interview with us earlier today said she definitely thinks a 50 basis point rate hike will be an option. if you are going to be 50 basis point rate hikes, twice as big as 25, then that's also going to have to be looked at in conjunction with the balance sheet. so she's also touching on this point of this is kind of a new thing for the fed to do, to use rate hikes but also balance sheet reduction to help bring down inflation. and of course the minutes tomorrow from the march meeting are expected to show, as jay powell has signaled they would, what are they planning to do about balance sheet reduction? i would submit to you that what they were thinking in early march may change over the next 1.5 months. they may feel more urgency to get the balance sheet reduction to be more aggressive. in 2017 they started with a total of about $10 billion a month, over the course of the year they got up to $50 billion a month. people are thinking maybe the

fed, wherever they start, they may end up with about $100 billion a month in balance sheet reduction. but the balance sheet is so much bigger. when you are starting at $9 trillion you have a lot of work to do. haidi: kathleen hays there. more sanctions are coming from russia. this, after ukraine's president vladimir zelenskyy addressed the united nations security council, where he demanded justice for alleged atrocities committed by russian forces. >> i returned from our city of butcher recently liberated from russian troops, not far from kyiv. there is not a single crime they would not commit there. the russian military searched for and purposefully killed anyone who served our country. haidi: let's bring in for more, our congressional reporter. what we know about these new round of sanctions being proposed? who are they targeting? dan: i think in general you are

seeing an attempt to basically tighten the sanctions regime around russia. they will be targeting some individuals close to vladimir putin, potentially even his two daughters. they will also be targeting some oligarchs who may carry some influence with putin. and there will be a ban from the u.s. on new investments from russia. we have already seen a lot of companies pull out of the country. so in some ways, this is symbolic, but there are some investments at the margin that this could affect. and one of the more interesting moves is potentially coming from the eu, which would be to institute a ban on coal from russia. so you see kind of a willingness now to engage a little bit more in the debate over energy. and oil and gas is obviously a much bigger issue for the bloc

than coal. but they have also indicated a willingness to at least discuss a ban on oil and gas in the coming days. in general you are seeing a tightening around russia, and you are starting to see some movement on the margins on some o fthese bigger ticket items like energy. shery: so what are the chances of secondary sanctions being imposed? daniel: i think right now that is not a road that the biden administration wants to go down. and it does not appear to be a road that the eu or the u.k. want to go down. we talk about secondary sanctions, we're talking about basically sanctions on allies who would be in a position of doing business with russia, either buying oil and gas, or perhaps in the case of china, buying some other commodities or

lending some other sorts of financial assistance. and i think the idea basically is to close a lot of the loopholes and to prevent any leakage, so to speak, in the sanctions. but you really risk from some country's perspective, a broader economic impact if you start to sanction some of the countries that are doing business with russia just in the course of their day-to-day business right now. at the same time obviously, i think that now we are more than one month into the invasion, folks are looking at ways to really tighten the sanctions regime. shery: dan flatley there with the latest on those sanctions on russia. let's now get to vonnie quinn with the first word headlines. vonnie: the u.s. trade chief says washington wants to realign its commercial ties with china rather than seek a divorce.

katherine tai oldest exclusively the biden administration's policy has been focused on realignment in the global economy. she says the aim is to address the lack of visibility, accountability, and diversity in supply chains. >> i would focus really on the kinds of changes we are trying to bring, which are really not about stopping trade, or trade divorce. they are really about bringing reform and more strategic approach to trade. vonnie: pakistan's supreme court has deferred a decision on the legality of the prime minister's this vision to dissolve parliament and call early elections. its chief justice has told lawyers to conclude their arguments by wednesday so the panel can hand down its verdict, although no date has been set for a ruling to be announced. sri lanka's president has revoked emergency rule within days of imposing it.

the order had given him sweeping powers to seize people and property, but he also faces mounting calls from lawmakers to resign. his government's majority in sri lankan parliament is now in doubt of the 11 parties in the coalition planning to focus as independents. tiger woods say he will probably tee off in the masters tournament thursday. this following a 14 month recovery from a near fatal car crash that almost cost him a leg. the hype surrounding his possible return has almost been is praised as when he was racking up 50 major championships and becoming the first athlete of any sport to earn $1 billion. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, battery swap service provider google rachel's just gone public. we will discuss expansion plans

with the coo. plus, why they have been loading up on canadian equities. this is bloomberg. ♪ this is bloomberg. ♪

haidi: take a look at the price action we are seeing this morning. we saw that fall in treasuries. lael brainard really reinforcing the hawkish approach we have been seeing from the fed. we also heard from the rba yesterday dropping that language around patience, adding two more hawkish bets they will be moving sooner and quicker in australia. take a look at the 10 year bond yield jumping to 2.9%, the highest since 2019. we already saw some pretty big moves, taking a slide at the open. we also saw the prospect of further rounds of sanctions on russia, further adding to the economic downside and

inflationary pressures. take a look at the new zealand. of course watching jgb into the japan open. crude falling about 1.25%. some residual concerns over demand construction. take a look at gold. flat at this point. a big jump we saw the aussie dollar as well, the biggest in almost three weeks, and sitting at the highest since about june. still outperformance coming from the best performer in the g10 space. our next guest seeing further upside, likes the markets with highest exposure to them. joining us is mark matthews, head of asia research at julius baer. as debate continues over inflation and how to deal with it, you would prefer to just ride the inflation roller

coaster been some energy and commodity names that are benefiting. mark: exactly. it is not 100% of our equity portfolio is in commodities. but we think it is putin -- it is prudent. last night the eu is moving towards banning russian coal imports, and the ism services pmi prices paid reached its highest ever rating. i think it was either 83 or 84. candidate has these good-quality companies with high exposure to energy and materials, and a sort of cozy oligopoly of banks. and a currency that correlates well to commodities. it is not the only place. australian is another country that benefits, and so in indonesia, so in malaysia. but i happy to but -- but i

happen to be canadian, so, biased. shery: [laughter] the other thing you mentioned, what happens when the fed gets to 3%? mark: yes, i mean, either we get to 3% and we realize that is not enough because it is not helping to bring down inflation, so we have to keep on trucking up to, i don't know, 4% or 5%. historically you really do see that kind of fed funds rate weighing on equities. or we get to 3% and there is so much debt in the system that the economy crashes because of these higher rates. so, there are risks to raising interest rates. and having lael brainard reiterate the fact they want to move very quickly, and i think she used the word rapid, and she mentioned precisely the month of may for the quantitative tightening. i think she quoted paul volcker

as saying that inflation is the biggest risk to an economy, ultimately. so yes, it is a tangible threat to the stock market if the interest rates go up very fast. shery: what does that mean for the greenback? because we continue to see strength with the fed really turning more hawkish, but at the same time, other central banks are continuing to raise rates. are we going to see a bull trap when it comes to king dollar? mark: i am not sure, shery. it's a tough one, because you are absolutely right. inflation is a problem globally. and i think what has been more surprising than the fed is perhaps the ecb coming out as hawkish as they are, notwithstanding the fact that they are right next to this war. so, i mean, their economy is a lot more vulnerable, and they don't have the same self-sufficiency that the united states does.

so, hard to say, but to me, if you look at the major crosses, the boj is the one black sheep, where they are just absolutely committed to loose monetary policy. so i would have thought that particularly in light of the recent break and the yen downward for something like a 30 year resistance bent, that at least that's one cross i could see where the dollar continues to be on the upside. shery: what does a weaker japanese yen due to the japanese stock markets? that correlation seems to have broken down now. mark: yes, you are right. i was just looking at it the other day and i was surprised that the weekly corporation -- correlation of the nikkei to the yen the last decade, i think it was about 20%, which is not particularly material. so it is surprising because over 50% of nikkei revenues are from

overseas. but, yeah, it does not seem to work very well. and i wouldn't buy japan just because i thought that the yen was going to weaken more. shery: good to know. mark matthews, always good having you with us. coming up next, after taking a seat on twitter's company board, elon musk moves to reclassify himself as an active investor. more details, next. this is bloomberg. ♪ this is bloomberg. ♪

shery: twitter has named elon musk to its board a day after we learned that the tesla ceo had become the biggest shareholder in the social media giant. in joins us with the latest.

the stock has continued to rise. su: we continue to get new headlines. we know that the tesla ceo has refiled his disclosure form to indicate he is now an active investor because he has been named to the board. check out the huge surge in the stock, t biggesthe -- the biggest two day gain in its history. now on being appointed to the board, another surge. you can see the huge surge in trading volume as well. and in terms of reaction from within twitter, the former ceo, now on the board, jack dorsey, said he's delighted. he leaves the board later in the year enda curran ceo also tweeted out his excitement, an embracing of musk on the board. what is interesting that by naming musk to the board which

came as a surprise to many because it same so lightning quick, it was also a search egypt move many analysts say because it limits his stake in the company to below 15% which prevents any possible takeover. we saw musk refile after that to indicate he is an active investor as opposed to his initial classification which made eyebrows raised indicating he was a passive investor. again, twitter's stock has been under pressure since late 2021, so a lot of questions about what happened going forward. but we know musk tweeted right after the big news came out about the filing yesterday, he put out a twitter poll. did his followers want to see an edit button on twitter? we already heard from twitter management that they have been working on this, apparently for the better part of a year, and are planning to do so. that has also indicated, many

say, that there have been conversations between musk an d internally with twitter for some time. haidi: analysts have been scrambling to make sense of the changes. what are they saying? su: david: they are still processing it. -- su: they are still processing it. but the general view is it is better to have musk on your team than not. he has the ability to rocket stocks higher, as we have seen with the twitter stock. there is also the view that he will shake things up a little. in fact, one of his tweets recently was he planned to shakeup social media. so, it's expected that there will be some high profile discussions if not conflict with the current ceo. a lot of questions about his intent. what does he want to do? there was a tweet in addition to the one that recently went out about the edit button. did a lot of musk followers think that twitter had a problem

with freedom of speech? so, freedom of speech could be an issue going forward, but again, many close observers of elon musk say, is it really about freedom of speech, or is it really about freedom of elon musk's speech? the sec has been monitoring his tweets. he is not happy to have a so-called twitter sitter. this may be an end run around that, some say. haidi: su keenan with the latest. let's get you a latest check of the headlines. future partners amazon and future retail agreed to resume in arbitration case in singapore. they are in dispute over assets to reliance industries, which have been poaching staff and taking over rental leases of hundreds of stores in its battle for retail to premises in india. amazon has been trying to block formal acquisitions through lawsuits and arbitration. global asset managers including fidelity are facing the risk of default in sri lanka. according to bloomberg data,

fidelity's parent fmr are among the largest holders sri lanka's $13 billion of foreign debt. next, our exclusive interview with the u.s. trade rep katherine t at xfinity, we live and work in the same neighborhood as you. we're always working to keep you connected to what you love. and now, we're working to bring you the next generation of wifi. it's ultra-fast. faster than a gig. supersonic wifi. only from xfinity. it can power hundreds of devices with three times the bandwidth. so your growing wifi needs will be met. supersonic wifi only from us... xfinity.

>> enhance economic engagement in the region. an egg exclusive interview, she told us that the biden administration is not seeking a divorce from china. >> i know that the devil is always in the details, so i have been following this particular issue quite closely, although it's officially outside of my particular purview, but we are

watching very closely as the decisions that china is making. haslinda: you said the tariffs have not incentivized china to change its behavior. if he has not changed china, why not just remove the tariffs? >> i think they are in place for a number of reasons, and they are having an impact. i think the question is -- haslinda: what impact? >> they've been noticed in beijing. they are shaped here in southeast asia, we have seen. and they also are affecting the incentives of producers and consumers. i think that the question before us is identifying what our goals are with respect to how we intend to realign our relationship with china on trade and economic matters, and

whether or not the tariffs themselves are effective at getting us there. they are having an impact. i think that the real question before us is whether they are self-sufficient, or whether there are other tools we need to bring to bear on getting us to where we would like to have a more balanced trade relationship with china. haslinda: could it be towards decoupling? >> between whom and whom ? haslinda: u.s. and china. if you take a look at the stance, it would rather have the u.s. rejoined tpp rather than have an indo pacific economic framework. >> here are a lot of questions around this idea of decoupling. it's not a term that i use, except in response to questions around it. i think it is important to distinguish between the concept of decoupling, which is kind of like a divorce between

economies, i think, and this concept of reforming or realigning our economies. i think we are very much focused on realignment in the global economy. i think that with respect to the disruptions and pressures we have found on global supply chains, the lack of visibility we all have into those supply chains, lack of accountability, and also lack of diversity in those supply chains are all issues that we are trying to address through realignment. so i would focus really on the kinds of changes that we are trying to bring, which are really not about stopping trade or trade divorce. it's really about bringing reform and more strategic approach to trade. >> the u.s. trade representative speaking with haslinda amin. let's go to vonnie quinn with the first word headlines. >> the u.s. and g-7 companies

are coordinating a fresh round of sanctions against russia. measures including u.s. ban on investments in the country and in eu ban imports. it will be increased on state owned firms, government officials and their families. it comes after the discovery of alleged atrocities by russian troops in ukraine. the u.s., u.k. and australia are working on developing hydra sonic weapons with them looking to deepen defense cooperation on areas such as electronic warfare and artificial intelligence. the weapon technology has been deployed by russia and ukraine. it travels five times faster than the speed of sound. the fed governors as the central bank will raise interest rates steadily while starting balance sheet reduction as soon as next month. in a virtual sea she called the task of reducing inflation pressures paramount for the fed. she did not make it clear whether she supports the house

hike in may, however, she is open a stronger action if needed. the fed president says a half-point hike is an option and he is regarded as one of the more hawkish fed leaders. in recent months she has called steady and deliberate rather than aggressive actions. george told bloomberg the size of the increase would be need to wait against plans. global news, 24 hours a day, powered by more than 2700 journalists and analysts and more than 120 countries. shery: bank of america will bring its workers back to the office by june 1. what has bank of america been doing so far? >> we saw announcements related to different regions. in new york, specifically, when the vaccinations were up and

cases were down, they were starting to bring back their staff at a higher rate. but as we started to see the omicron variant pop up, obviously that needed to be amended, and we have seen a push and pull, not just at bank of america, but across wall street. today, this announcement applies to all bank of america's u.s. staff. if you with the cabal new york and other regions where there might be more employees, they've already been in the office. maybe not five days a week, but they have been. this announcement was a call to get everyone, the entire u.s. force, back into the building by june 1. shery: -- haidi: will they be required to go back five days a week, how much flexibility remains? >> that was the question i was asking sources today, and what i was hearing is that flexibility will remain. this is not just at bank of america, but other wall street firms have had to make some

arrangements so that they are not losing talent. people are getting used to being able to work from home, they are able to do it in a way that is still efficient, but they are also recognizing that being in the office and collaborating in person makes a difference. so it's going to depend on managers, it's going to depend on which type of business you are in. for example, the investment bank is having more of its employees back in the office on a five day a week, if they can, basis. but that's not the case for all groups. so it's really going to be decided by both the region, the business line, and again, this is something that all banks are having to decide so that they can keep their workers happy and have them also hiring new talents. shery: our employees happy about this? how are they feeling? >> the flexibility is something

i hear employees asking for. the balance, right? this is all a push and pull. if you tell anyone they have to do one thing more than the other, even if you say you can't come back into the office, there might be pushback for that. i think that's what all firms are trying to decide right now as caseloads are going down, as it safer, it's a discussion. as long as it's a discussion and they hear from their employees about how they are feeling, and also looking at their work, is it being impacted by folks that are coming into the office more or less? this is all something that each firm is going to have to decide as time goes on. haidi: our finance reporter in new york. coming up next, battery service provider is about to debut on the market via spacs. our interview with the cfo is just ahead. this is bloomberg. ♪

>> the start up that specializes in battery swapping technology has lifted on the nasdaq through a merger. it could go out over $2 billion. the company has touted its

ability to reduce energy consumption with its product, that powers electric scooters and other two wheelers. we are now joined by the cfo, it's good to have you with us, tell us a little bit about this raise and what you plan to do with it as well. >> thank you very much for having me this morning, we are super excited to debut on the nasdaq. we did a spac merger together. we raised about 350 million dollars in capital through this transaction, including a big chunk through a pipe. we got super strategic investors with us in the pipe, some of our existing investors, large and new investors like foxconn and others who will help us as we now try to go and expand. $350 million to the balance sheet. we have programs underway to take the dollars and put them to work in indonesia, india and

china and spread throughout southeast asia. our solution is a great one for a densely populated urban cities in asia where people live on top of each other and battery swapping is a super elegant solution versus the traditional plug-in. shery: tell us a little about those strategic partnerships. what exactly do you hope to accomplish? bruce: the way the program works is that we sell a simple kit of components directly to a -- directly to a two wheel vehicle. we've done it with the light of suzuki taiwan and local taiwanese manufacturers. we are now doing that with some of the biggest to will makers in the world. the idea is china's largest major. it is china's largest traditional gas vehicle maker. and here, a household brand in india and market share leader in the traditional two wheel share. they can integrate that into their existing vehicles. they can tap into their existing

retail channels, and then those become powered by the gogoro network, so our battery swapping system can be made seamlessly and bring different types of vehicles in different style of vehicles in different price point of vehicles to each of these markets where consumers have very specific and very indo -- individualized needs. haidi: as governments like taiwan looked in at zero, are you able to transition or take advantage of the transition? bruce: absolutely, governments see the path is to net zero in the path to sustainable transport. in each of those countries mention, whether it's indonesia, whether it's china, whether it's india, whether it's taiwan, governments have put subsidy dollars are other incentives in place to encourage individual consumers. there's over half a billion writers with two wheelers just in those countries alone. so a massive opportunity for a

government to put their money where their mouth is and provide subsidies or provide other kinds of benefits to manufacturers and to consumers, such that we all contingent -- contribute to sustainable urban mobility. >> can you tell us about your experience over the past couple of years and perhaps where we have seen supply-side shortages, logistic challenges and the rise of raw materials. bruce: absolutely, we had a price increase, we have done our best as possible to protect our consumers from that price increase, we have had new vehicles. our energy service platform is for us to be top competitive with someone in a gas powered vehicle and ownership is the case and a three to five-year window. taiwan is a great place to be in terms of being able to deal with supply chain challenges.

whether it's on the icy side or whether it's the flexibility of the taiwan manufacturing system. we have been fortunate to run our pilot programs, and now we are ready to take those programs that extend them globally. shery: are the rising costs delayed at your plans to turn a profit? bruce: we have been positive since 2019. that's the indicator of success. we continue to generate a great deal of cash. the battery side of the business, the swapping side of the business is more like an infrastructure place, so it has a longer buyback or payback. we are comfortable with where we are today and we are on a path to profitability and have been positive for the last few years. haidi: we have seen falling spac prices waning m&a activity, greater scrutiny over this type of vehicle, does it come with russ? bruce: the first choice we had to make was to go public, we

made that choice and thought the nasdaq was a great place for tech companies to list globally known. we decided it is time for us to step up and go on to that world global stage and go to to to with the big tech company. the second decision was to have a list. we looked at multiple alternatives and we settled on a spac because the spac process gives it more time. if it's conducted well for targets and spac partners to get to know each other, we've developed a great relationship with the folks. they have been a great partner. they have sustainability and they also share this same notion of making the world a better place. so we found a great partner and then decided that it was a good route for us. you are right, there have been headwinds in the last month. thankfully, as our shares open overnight in the last two days, we have been doing quite well. we are pleased with the results. haidi: great to have you with

us. bruce joining us. funny more to come on "daybreak asia". this is bloomberg. ♪

shery: hers a check of the latest business flash headlines. twitter name elon musk to its boarded day after the test the ceo became the company's largest

shareholder. the appointment ends the possibility of musk mounting a takeover, capping his ownership have 14.9% during his time on the board. muska currently holds a nine point 2% stake, which is equivalent to around $3.7 billion. u.s. regulators are looking into electric and hybrid vehicle batteries made by lg energy solution after recalling over wire risks. the investigators cover an estimate of 138,000 vehicles. regulators launch the probe after seeing complaints about cars made by volkswagen and mercedes-benz. spirit airlines shares jump after jetblue offers to buy it for $3.6 billion, potentially spoiling a bid. spirit said it received and lifted its proposal to purchase outstanding shares for $33 apiece in cash.

jetblue's offer comes about two months after frontier reached a deal to buy period for $2.9 billion. the billionaire leader of asset management group has helped turn his country into one of the world's largest alternative investment firms. with it at about 700 billion dollars. the ceo discussed his secret to success on bloomberg wealth. >> everyone always sings about geopolitical events, and one needs to be careful in business with everything they do, put in the purpose of tying, all geopolitical events past. wars, explosions, recessions, all those things come and go and they are really important at the time. good businesses and great places and keep compounding returns and you will learn excellent long-term returns. russia has invaded ukraine, but

is that a big concern for you? >> firstly, no. even though we are global, we ought to be everywhere. we are trying to be everywhere and we don't sell consumer products. some businesses do, but we don't. what we need is, rule of law in a country, culture and respect to capital, a place big enough to investor we can operate with the standards that we do in the united states, for example. those two countries, for whatever reason, didn't fit one of those things. so we don't have direct investments. every business around the world will be infected -- affected in some way. there's no good news coming out of this. >> what about the issue of inflation. in the united states it is roaring compared to where we've been the last 30 years. is inflation a big concern for you as an investor? >> first thing is we invest in

alternative investments. what alternative investments mean is that we own businesses or assets which adjust their revenues over time. so we don't own fixed income insurance. but please adjust over time. so, inflation actually is a positive for most of the things that we do. if this office building cost x to build, today, if inflation comes it will cost x plus something, which means the right to justify something is more. when it means is the income streams of all businesses and real assets are going up. the real issue is, it's interest rates. if interest rates go up a lot, then that changes the paradigm of businesses, we don't think that's going to occur. shery: brookfield ceo, you can watch out full conversation in

9:00 p.m. in new york with david rubenstein. we are counting down to the start of trading in tokyo. in japan, the latest poll shows public support growing for japan to strengthen national security. this as we continue to see rising concerns over china and russia. japanese defense minister said his agency wanted funding for a drastic increase to the countries defenses. nikkei is reporting mitsubishi motor has a delay in product delivery caused by the covid lockdown in shanghai. this will be automakers for time halting its electric factories and shall 2020. on the corporate front, gm and honda are expanding their partnership to develop millions of affordable electric vehicles. over and south korea, authorities will update the latest covid case numbers. the government has cut its -- to ease brighter pressures up 4%

for the first time in more than a decade. in the cabinet will hold an extraordinary session of who government funds the president elect for the plan to relocate the presidential offer. he said he wants to move the office closer to the public. haidi: before markets exit, let's take a look at the stocks we will be mark -- watching. the gambling commission is starting proceedings against crown melbourne after the commission found that the crown operation devised a payment process that evades the chinese currency restrictions. gm and honda say they will develop the four door electric vehicles across major markets. this is an effort they believe can reduce battery costs faster and developed ev's at prices that even tesla appears to have stopped pursuing. bloomberg learned that they have agreed to annual contracts with tech resources that include the

45% increase in treatment charges, and that could somewhat help alleviate the capacity cutbacks have added to high prices. this is what we are seeing as we head into the start of cash trading across major markets in asia. australian stocks potentially continue to react not just to the dropping, or the rba, but really this upsides impact we've seen from the fed governor for the reduction in the fed's balance sheet. that really played a much bigger role in it comes to the impact on equity. even the recent calls for more aggressive rate hikes that we know the stock markets have continued to bounce back pretty well despite of that. shery: coming up in the next hour, chinese markets reopen after a two day holiday. we expect the impact of covid cases and the impact in china's economy. fidelity says the biggest risk coming from the citywide lockdowns in china is property.

we discussed. market opens and insignia, seoul and tokyo are next. this is bloomberg. ♪

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shery: welcome to "daybreak asia" from bloomberg's world headquarters in new york, i'm shery ahn. haidi: asia's major markets have just open for trade. our top stories. asian stocks and bonds set to come under pressure as they downside the swiss cuts. the fed is waiting to reopen of the chinese markets. it sending mixed messages. close the u.s. and allies planning for the rex russian

sanctions, including a ban to punish the kremlin for alleged crimes. shery: we start you off with breaking news out of china. we are seeing shanghai reporting over 17,000 covid cases for tuesday. this would be a new daily record. the previous one was 13,000, that has not been shattered. the official lockdown and shanghai ended on tuesday for the western part of the city, but there is still very stringent -- stringent restrictions in place. this as we continued to see the virus spreading across the city over 17,000 covid cases

coming online. we are seeing the nikkei losing more than a percent. after we see every sector and the red being led lower by industrials and material sectors. the topics is also down almost as much as the japanese yen holds that 123 level. it's been pretty range bound since the boj's aggressive monetary easing. we are watching jgb yields because they are now rising without broader treasury route that we saw on the new yield session. getting close to that level .226%. we saw the boj's aggressive monetary easing in order to cap yields just last week that led to more weakness for the japanese yen. right now we are seeing it above that .2% level again. take a look at the korean markets because the kospi in the cause? losing ground after rising for two consecutive sessions is really -- this week. the korean won continues to see weakness against the u.s. dollar after rising for a second session. we have seen inflation pressures accelerating and south korea and the bank of korea, warning that inflation is likely to stay and therefore percent range, which would be the highest in more than a decade.

that be ok rate decision coming up next week. haidi: we are seeing downside when it comes to trading. so much of the markets have been a cloud of the central bank. hawkish and us with a pivot towards hawkish and us, given that they did drop that reference to patients yesterday. we are seeing every segment of the market trading in the red at the start of trading here in sydney. the biggest losses coming from utilities, materials, despite the fact that we can city to get the muck -- the commodities rally benefiting australia. look at the bond space, that's where we see the action. australia 10-year rate jumping to 2.93 6% at the moment. the highest since 2018. we have also that moving the three year to above 2.5%. all of this as we also see the aussie dollar continue to hang on for most of that strength.

he jumped the most in three weeks and was trading at the highest since june, above 76 u.s.. a little bit off, but it still holding onto most of that positive upside sentiment. taking a look across treasuries, slumping on tuesday, the fed governor believes in calling for the central bank balance sheet managed impact not just the bond markets, but also equity sentiment. s&p futures are pretty slack at the moment. we will continue to see a little bit of downside pressure when it comes to crude. shery: our next guest says 2022 is the year of -- and still expects a rotation to play out. let's discuss more with the investment director of fidelity international. good to have you with us. the move we are seeing today is very fast in the bond space and equity space. what does this tell you about your calls for the year? >> for the short-term we do

expect the markets to remain volatile. we expect the value to continue to outperform. last year we saw value names doing well at the expense of the gross names. but what's coming through this year's they have devalue names for their earnings performance. so, it's a case of owning the right values juxtaposed with owning the right names. those names have been sold off and less crowded and still have the earnings power. shery: it still being supported by a policy move, especially when it comes to regulation, and perhaps a little bit of resolution when it comes to the delisting of chinese adi. catherine: exactly. we are seeing further progress for the issue. don't forget that 90% of chinese companies listed in the u.s. are eligible to have either a secondary or dual listing in hong kong. so we did think last month,

really was taking us by surprise and the adr issue has been around for some time in the restriction within the company was with the covid situation. but we are expecting to see supportive measures related to certain names that were hurt last year because of regulatory concerns. haidi: i want to get your views on our question of the day, because we did see them more upside impact during our comments on the stock market, which as pretty much remain immune to all of the fed concerns about inflation and the fed tightening. is there a sense of that reduction in balance sheet that makes sense for why it would make the difference there? catherine: china remains in interesting investment opportunity because china is at the very different end of the

spectrum versus what we are seeing from a policy response point of view in the market such as the federal reserve. so, a tailwind first china should be this year. the stimulus we use for monetary and fiscally speaking, however, you don't see investors overly excited because from the chinese regulator perspective, it appears they will tweak marginally and very much of a stability way. so won't be a rush of stimulus and liquidity coming into the market. that plays towards congress meeting this year, and the aim of achieving 5.5% gdp, but we also want to support large stability, as well as on the ground. hence why their risk of china is still presiding property for the covid lockdown. haidi: you talk about selecting the right type of growth to stock. it can be quite hard to

determine these fundamentals when you are talking about chinese equity assets. what are you liking, for example, is property now a good value? catherine: it's quite quench ore in, but we expect to see further consolidation in the property sector. some are struggling in the bigger players will take up market share and sake of those projects. when we look at that stability aimed in the regulatory sector. if you put down a deposit for an apartment, you could get that apartment. but that's why the projects are really key. we are seeing them relax some property measures, but it's going to be very balanced like the rest of the policy direction regarding china. it's also really important in terms of entering stagflation is the dividend yields. so still a big focus on those names, which are increasing the dividend payout and has got commitment to the dividend

policy. that's key because generating income is just as important to generate growth, especially in the world we are living in today. haidi: always great to have you with us. catherine ewing, let's get you to vonnie quinn who has our first word headlines. vonnie: the u.s., eu and g-7 countries are coordinating a fresh round of sanctions against russia. it includes a u.s. ban on investments against the country and in eu ban on coal imports. according to the white house the penalty will be increased on state owned firms, government officials on the families. it comes after the discovery of alleged atrocities by russian troops in ukraine. the u.s. trade chief says washington wants to realign its commercial ties with china rather than seek a diverse -- divorce. the policy has been focused on realignment in the global economy. she said the aim is to address the lack of visibility, accountability and diversity in

supply chain. >> i would focus really on the kind of changes that we are trying to bring, which are really not about stopping trade or trade divorce. if they really about bringing reform and more strategic approach to trade. >> sri lanka's president has revoked emergency row within days of imposing a. the order had given him sweeping powers to seize people and property, but he also faces mounting calls from lawmakers to resign. the majority in sri lanka is parliament is now in doubt with 11 parties planning to function as independent. pakistan supreme court had to -- did the decision to resolve parliament until early elections. the chief justice told lawyers and opposition groups to conclude their arguments by wednesday. so they can hand down their

verdict. no date has been set for any ruling to be announced. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. >> asset management firm seeks other chinese cities going into lockdown and dragging on the chinese economic growth. but first, the state government says balance sheet reduction could start as soon as next month. we get more on that in our exclusive interview with the fed leader. this is bloomberg. ♪

>> this is the markets readjusting. >> the inversion of yield curve. >> are pretty strong signal that we are facing some kind of significant -- >> when the curve gets flat inverted. >> i am very impressed and quite honestly surprised about how resilient equities have been. >> the equity markets balancing there's a risk of recession. there's also a possibility that things continue on for another 12, 18, 24 months. >> it's too early to sound an alarm bell on the recession. >> what the yield curve is discounting is higher on server growth slowdown next year. >> within a years time you are going to see that impact of the flatter curve on the broader economy. haidi: our guests talking about

the growth and certainty. this is the indicator we have been watching, the selloff across u.s. treasury sign global sovereign bonds tracking in the asian session. of course this follows on those comments from them saying that the central bank is likely to step up monetary policy tightening. the reduction in the massive debt holdings in the balance sheet looking like a will be swift. it's sparked a selloff that sent yields on ten-year year treasury notes to the biggest jump this march 2020. that benchmark 10 year to 2.55%. that was a jump of 16 basis points, and you are seeing their 2.5 six level at the moment. the two-year also rising 10 basis points with the highest since march 2019. five-year climbing to just over 2.7% there as well and another big move. just extending what we have seen over the past few weeks and months. a sharp rise in yields. really, investors just racing

for these moves from the fed. shery: we continue to see those multiyear highs for yields and it's coming just one day ahead of the federal reserve releasing its march meeting minutes. bloomberg's global economics and policy editor kathleen hays is here with more. how important is it that they now seem to be on board without more hawkish tone? kathleen: first of all, she is dovish, more cautious fed official. in oliver statements. she has also been at the board of governors many years. along with jay powell and others. and, she's aligned to be the fed but share. so when she, and prepared remarks, not just an answer to a question, goes out of her way to say, number one, getting inflation down is paramount. seems pretty obvious, but the most important job. and part of making that happen is going to be balance sheet reduction, potentially that is

more aggressive than the balance sheet reduction the fed did after the great financial session. let's listen. >> given that the recovery has been stronger and faster, i expect the balance sheet to shrink considerably more rapidly , with significantly larger caps in a much shorter time with the maximum cap compared with 2017 to 2019. kathleen: to touched on a very important issue when it comes to letting the balance sheet runoff, meaning you are reducing stimulus and reducing liquidity there is a lot of experience with quantitative easing with buying bonds to stimulate the economy. but if you start doing these moves to reduce the balance sheet to help reduce the inflation, then he of got to gauge that against, well, rate hikes. how much balance sheet reduction is equal to one rate hike, etc.

it's very possible that this is going to be figured out more in practice, nevertheless, it will also be a question the markets are asking themselves. certainly, jay powell will get asked that for the next press conference. haidi: the kansas city fed is looking out more aggressive moves. she's talking about the balance rate hikes along with the reduction in the balance sheet. kathleen: absolutely. esther george's president of the kansas city fed, she, this year is a voting member. she has long been in the hawkish camp. although, when it comes to getting the fed through the pandemic monetary driven policy, she has been cautious. she has not been in front and moving quickly to reduce stimulus. but now she does say that they've gotta do it, they have to balance it with 50 point based rate hikes, but she think there's an option for the fed was a get started and quicker than the last recession. let's listen to what she told

bloomberg television in an exclusive interview today. >> when you look today at where the balance sheet is in the conditions in which we will be doing that, i think it easily argues we are going faster and moving along at a quicker pace than we did before. we have a ways to go to get this accommodation out of the economy. >> jay powell tipped us off in the last few weeks that at the last meeting in march, they were looking at balance she runoffs. when the minutes come out tomorrow we expect to see more details. when they do balance sheet reductions in 2017, they started with $10 million a month in reducing treasuries, and then they worked it up over year to 50 billion, but bloomberg economics as we will look at something like reductions of 80 billion to 10 billion a month. that will be faster and bigger because look how much bigger the balance sheet is, almost 9 trillion. the topped out before at five. this is a much bigger task. also, being used as a tool to help reduce stimulus by

inflation. that's the new wrinkle in this go around. haidi: our global economic and policy editor kathleen hays. you can get a round up of the stories you need to know to get your day going in today's edition of daybreak pure bloomberg subscribers can go to dayb on the terminal. it's available on the bloomberg anywhere app. just get the news on the indices and the assets that you care about. this is bloomberg. ♪

>> we are tracking the fallout of the global supply chain. some of our top stories. wait times for semiconductor deliveries rose, reaching a near high after lockdowns in china in an earthquake in japan. nikkei is reporting that they

will suspend production next week at its plant due to delayed do to their covert lockdown in shanghai. this will be the automakers first time halting its domestic factory since july 2020. australian wheat farmers are optimistic for the next crop, as a worn ukraine means that the world now needs australian wheat. shery: take a look at this graphic that shows how the war affects the global food supply picture. russia and ukraine accounting for a quarter of the world's grain. they are raising the spectrum of food shortages around the world. bloomberg terminal users can read more about the stories in our newsletter that's on and i trade in l. u.s. trade representative kathleen's and singapore to boost the indo pacific framework designed to enhance economic engagement in the region in an exclusive interview with

bloomberg's haslinda almond. she told us the biden administration is not seeking a divorce from china. >> i know that the devil is always in the details. so, i have been following this particular issue quite closely, although it's officially outside of my particular purview, but we are watching very closely at the decisions that china is making. >> you said before that the tariffs have not incentivized china to change its behavior. if it has not changed china, why not just remove the tariff? >> i think the tariffs are in place for a number of reasons, and they are having an impact. i think the question is -- >> what impact? >> if they have certainly been noticed in beijing, certainly, but also they have shapes, trade flows here in southeast asia, we have seen, and they are also

affecting the incentives of producers and consumers. i think that the question before us is identifying what our goals are with respect to how we intend to realign our relationship with china on trade and economic matters, and whether or not the tariffs themselves are effective at getting us there. they are having an impact. i think that the real question for us is whether these tools are sufficient or whether there are other tools we need to bring to bear on getting us to where we would like to have a more balanced trade relationship with china. haslinda: could it lead to a decoupling. >> between whom and whom? >> u.s. and china forcing countries, trade partners to choose sides again. if you take a look at singapore stance, it would whether -- rather have the u.s. rejoined tp

tpp rep than have an indo pacific framework. >> here are a lot of questions around this idea of decoupling. it's not a term that i use, except in response to questions around it. i think it is important to distinguish between the concept of decoupling, which is kind of a divorce between economies, and this concept of reforming or realigning our economies. i think that we are very much focused on realignment in the global economy. i think that with respect to disruptions and pressures we have found on global supply chains, the lack of visibility that we all have into those supply chains, lack of accountability, and also lack of diversity in those supply chains are all issues that we are trying to address through realignment. so i would focus really on the kinds of changes that we are trying to bring, which are really not about stopping trade

or trade divorce. they are really about bringing reform and to more strategic approach to trade. haidi: u.s. trade representative katherine tai speaking with haslinda almond. let's take a look at the stocks urging the most in just about four years. we saw that city index at 11 with activist investor disclosing a joint holding of 5.8% stake that was in a filing to japan finance ministry, showing that the fun actually acquired a 2.55% stake or 2.1 7 million shares on march 10th. and we also saw additional shares being purchased between march 11 and march 29, advising that the management is also making other proposals among the purposes of holding that stake. so we are seeing them jump by just about over 11%.

coming up next, sri lanka falls further into crisis. calls are growing for the country's president to resign. some of the biggest funds may be amongst the biggest losers. this is bloomberg. ♪ bloomberg. ♪

shery: we have an alert on the bloomberg. we are getting the pmi, another month of contraction territory. the march number coming in at 42, easing more than the previous month at 42.9. we have seen easing of quarantines and restrictions in the omicron outbreak really derailed that momentum in the hong kong economy for the first quarter of the year. we are expecting to see some of those restrictions and countermeasures for covid being eased further starting april 21,

but still far from march. the pmi number coming in for a period month under that threshold at 42. haidi: shanghai reporting a record number of new covid infections again. cases rising to 17,000 for tuesday. the latest on the country's battle against the virus. let's bring in our managing editor emma o'brien. we continue to see prices where omicron has taken old this surge in cases. in terms of china's management, what's going on in shanghai, where we out with these so-called stagger, but not really, in a practical sense, lockdown. >> the lockdown, in effect, has been extended. initially we had this situation, but that should have ended by now.

so 25 to the million people restricted from leaving their home. we are not seeing any sign in the rhetoric of china adjusting its approach. it still very much focused on covid zero, and that involves isolating every single one of these now more than 17,000 cases reported for yesterday. as i can see the images now, the isolation sites did say yesterday that this is a big conflict center for the hometown airports where they tend to hold the china import explode event every year, a very vast center, which does suggest they are having to really bear the isolation for prints in order to this.

and this is one of the things that are in hong kong. they have the need for isolation as they shift into home isolation, which doesn't appear to be something china is willing to do. >> we continue to see these record daily cases, so what's in store in terms of what china can do to manage at oak brick? the record cases will be a byproduct. you have seen them mass test the entire cities so you will have more cases in that situation. if anyone is in the close contact of a case in shanghai is isolated as well, so you will see them pickup cases that may not have been picked up in other parts of the world. it is just a much more intensive testing regime.

we will be watching over the next couple of days to a week. if the cases continue to rise, even though you are out of the mass testing window, that may indicate delivering ed it's out of control. they have been able to put this improbable covid zero playbook to work yet again. i think it will be only a matter of time before this highly transmissible variant pops up somewhere else and china, and they need to make decisions about where to next. >> bloomberg's managing editor. let's get to vonnie quinn with the first word headlines. >> the fed governor said the central bank will raise interest rates while starting production the month. in a task of reducing inflation

pressures paramount for the fed. he did -- she did not make it clear whether she supports the half-point hike but is open a stronger action if needed. kansas city fed president said a half-point rate hike is necessary. george is regarded as one of the more hawkish fed leaders. in an exclusive interview he told bloomberg it would be weighed against plans for shrinking the balance sheet. u.s., u.k. and australia are working on developing hydra sonic weapons. while looking to deepen defense cooperations on electronic warfare and artificial intelligence. it's developed by russia and ukraine. such weapons can evade missile defense systems and travel five times faster than the speed of sound. sri lanka's president has revoked the emergency room within days of imposing it. he had given sweeping powers to

seize people and property but he faces mounting calls from lawmakers to resign. the government majority in sri lanka's parliament is in doubt with 11 parties planning to function as independent. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. haidi: how are global investors navigating the crisis in sri lanka? let's bring bloomberg's asia credit team leader to talk more about this. we're -- where are we seeing the most exposures when it comes to the continued deterioration of the situation and the increasing likelihood that this is a government that will struggle with their debt? >> global investors data shows that, in the past, some of the

biggest investors or holders of sri lanka's debt are big financial asset managers internationally, who, as part of their diversification portfolios , and there are a bunch of bond payments coming up, which -- the country could potentially struggle to come up with cash to make those payments. shery: which are the global asset managers that are most exposed? >> it's very difficult. obviously there are a bunch of names that have come up, but, it's very much a fluid process. shery: asia credit team leader. up next, we preview the reopener markets in china after the holiday. this is bloomberg. ♪

shery: chinese and hong kong markets reopen. we have our chief china market correspondent. we continue to see these rising

cases of covid in shanghai, what are we expecting in terms of how much the markets have already priced this in? >> good morning, they haven't traded this quarter, this is the first day of the quarter for markets in shanghai and shenzhen . what we really see is into the weekend, de-risking of positions, margin trading in shanghai actually declined quite significantly. snow around may, were truly shows up on shore. traders are not betting on a particularly strong rebound. the shanghai lockdowns and what we have seen since the weekend is really a lot worse and expected. a lot more protracted than expected and will have a lot larger impact on the economy than previously thought so since then we have seen gdp estimates revised down lower, and city

this morning cutting alibaba's price targets because of business difficulty during the lockdowns and shanghai. this is china's biggest city. really a lot to take in. i do think all eyes will be our policy response will look like, especially in a month where the pboc is expected to cut rates. haidi: in this as we continue to deal with the classic issues we talk about in china, the regulatory crackdown, the property markets. >> exactly. we haven't had much clarity over what kind of support policymakers will rollout for that industry. we are getting targeted support measures in some provinces where they are relaxing mortgage approvals and making it easier for homebuyers, but when it comes to what china will do since policymakers promise three

weeks ago to really support economic growth and make it easier on the regulatory side, make it more transparent and predictable, we haven't seen much since. when the property market effectively went dark because we did see their earnings delay, most of the companies amici -- missing the march study for its -- march 31 deadline. regulatory crackdown is not just china, it's also a happens with the u.s. and on the listing. the u.s. is clearly not budging and not relenting on what it says china needs to comply with, essentially u.s. rules. let's see whether an agreement could be reached.

haidi: chinese tech stocks have been battered over year. our next guest says the sector faces uncertainty. let's bring in the cio of power leadership investment. i want to take a look at the golden dragon index. every single time over the past year that i've tried to test the 50 day moving average, it failed to break higher. does this really tell us that the markets investors are still wary of calling a bottom when it comes to the regulatory uncertainty? >> i think there are a lot of uncertainties around the regulations and policies. we mention that from the u.s. side we face the delisting risk. from the industry side of the policy point of view, the policy seems to be tightening the internet names given that internet names have a very high rate and index.

we have reasons to worry that there are uncertainties. there are uncertainties despite the fact that a lot of companies may have to revise their earnings due to the covid situation. these companies are very robust in terms of operations in strong and innovation. the second is about valuation. you can see the valuation of internet names are at a low level. investors can be a little bit more optimistic about the future outlook and start to accumulate the stocks having very big movements. haidi: what about the longer-term outlook when it comes to property? we haven't seen more supportive policies come through for the industries. >> i think you are right. i think some investors are disappointed by the fact that we haven't seen fiscal and monetary

policy supporting the reacting market. however, i tend to believe that this is the darkest moment for the reacting market and developers from a fundamental point of view. you see self declining and delays in payment of the debt. you see delays and disclosure of financial members. you do see news about cities relaxing, for example, buyers restriction on the property market. we will also see rates going down, which will support demand from a leverage point of view. i think it's almost at the darkest of points if we still think the chinese government wants to hit the 5.5% gdp growth. i think relaxing the property market seems to be the right choice and things can potentially improve from now on.

>> the relaxation not happening on the covid zero policy side of things. given how it's being tweaked a little bit, consumers will take a hit but not so much manufacturers where we are seeing more of the closed-loop system in place every time cities go under lockdown. how do you play that into your market strategy. click so we are looking at zero policy in shanghai, we do realize that most of the activity stops for a half a month. and i could be extended for another seven days are slightly longer. the direct impact is half a month to a month of lack of activities. however, given that shanghai is not major manufacturer based, the impact of the expert side could be less than that. however, we see cities start to adopt the same policies against covid.

the impact of manufacturing will be seen in the later months. but if we compare the situation with the same situation and march 2020, given the recovery in the monetary and fiscal report, we see recovery. i think it's really dependent on what we will see as the policy. shery: what we saw in 2020 with stay-at-home trades. gaming and entertainment, are we going to see the same now that we see more lockdowns across china as well? >> i think that's true. you can see more activities and you could see more usage of online conference calls given that most of the people are staying at home and the purchase of groceries are definitely

increasing on the supermarket by recovering as well. i think what you saw in march 2020 will be seeing this year as well. shery: cio of power pacific investment management. this is bloomberg. ♪

shery: breaking news out of washington right now, we are hearing that the biden administration approved another $100 million in military assistance for ukraine. now this as president biden releases a statement today, the 100 million dollars will be in defense articles and services of the defense department and military education and training to provide assistance to ukraine and making determination required under such sections to direct the drawdown of $100 million. this as we have already seen

president biden signing into the massive spending package that included more than $13 billion in military and humanitarian aid for ukraine. haidi: let's get back to our other top stories. we have been following elon musk, do you want and edit button or not on twitter that has now closed. it's pretty overwhelming the responses we see. 73% voting, yes. we know this is something twitter users have been campaigning for. twitter saying they will kick off and turning -- internal testing saying they will work on the button, the most requested feature by users began last year before elon musk inserted himself into the debate. a lot is going on when it comes to elon musk being given that seat on the board, as well the ceo saying he's excited about the appointment.

he had documents to reflect his position as an active investor, not inactive. he currently owns 9.2% stake in twitter. shery: let's bring in su keenan. we continue to see the stocks surging. su: according to an industry insider, developments on this have been dizzying. the stock has at its biggest today run-up in the history of the company. it was just 24 hours before twitter added musk to the board that he announced or disclosed his stake more than 9%, making him one of the biggest shareholders, and now they have added him to the board. let's look at the two day stock chart. they gain was more than 30%. we are looking at a tweet. again, the trade volume, if we drop into the bloomberg, one of the biggest we have seen in the history of the company. what also was interesting was that the former ceo and board

member jack dorsey saying he was very happy that musk was added to the board. more surprising is the current ceo. he said he was excited. it's interesting to point out that many observers say that adding musk to the board and doing so, quickly, was a strategic move. what it did was cap musk's ownership at 14.9%, he can't own more than that at a board member and that affords him from having undue influence on the possibility of a takeover. as mentioned, musk refiled after being appointed to the board. his disclosure that he originally filed as an investor purities required by regulations to correct that and refile a different form that lists him as an active investor. he also disclosed that he was making cash purchases at twitter almost daily beginning january 31 through april 1.

twitter stock has been under pressure as of late before these past two days. it reached a peak in 2021, and many say that will be a key issue for the company going forward, keeping that stock up in good shape. haidi: what are analysts saying? su: what they are saying is whenever you have musk on your side tweeting positively about you are being actually in the company, it's good for the stock. there is a lot of positive reaction, although longer-term there is an expectation that what you will see is perhaps some conflict between the ceo and musk. what you're looking at is a meme that musk had put out a month or two ago that was somewhat critical of him and so some are saying that there could be fireworks down the line. musk is not happy that dorsey

was pushed out, but again, the move so far has been very good for twitter and tesla stocks. shery: bloomberg su keenan with the latest. we do have another on the bloomberg right now. protesters in peru's capital city of lima are now rating the judiciary headquarters of the country. this after the clash with police near congress after the curfew was lifted by the president. this after the congress asked the president to withdraw the curfew. remember, we have seen these mass protests, giving rising prices of fuel and fertilizer farmers and truckers taking to the streets. haidi: we will continue to watch that situation. we are also watching some of these stocks when it comes to the reopening of trading in hong kong and the mainland. that happens in about half an hour's time. we are watching tencent, alibaba, big tech names, china's

extended covid lockdown denting the growth outlook there. we have consistently filed to see investors gaining conviction when it comes to the recovery and chinese tech. and we have been watching the auditing story to try to avoid that delisting in the u.s. this is bloomberg. ♪

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