and remember the level it hasn't seen since 2015. we are seeing the kiwi 10 year yield you -- lose a little bit of ground after touching the 2016 high as well. the fed last week signaling a sharp rate hike and the balance sheet reduction all being felt across the bond space. haidi: and we are getting breaking news at the moment. we are getting the south korea march adjusted jobless rate coming in at 2.7%. the estimate was for around 3%. so it remains unchanged at 2.7% from february which shows the resilience in the labor market in south korea. we continue to see inflation rising.

south korea has been around for percent and the bank of korea not expecting it to come down anytime soon. we have the bank of korea's rate decision on thursday. the decision right now is that they will, in fact, be hiking rates by 25 basis points. in this of course coming at a time when inflation is an issue globally especially here in the u.s. reinforcing the need for the fed to follow through on its aggressive rate hike plan. let's bring in our global economics and policy editor kathleen hays and andreea. we are hearing from the president starting a speech in new york. what is he saying? kathleen: i have been doubly checking the headlines because he is speaking to money market

tears at a venerable fed watching group that has been around for 40 or 50 years. he has been talking about what happens after the inflation storm. he is suggesting that it is time to normalize policy. the fed will do what it must to address above target inflation i think it is interesting too. headwinds may persist. in other words, you may find some of those things like used car prices come down and chips aren't so expensive. gasoline prices come down but there is an underlying persistent inflation that doesn't go away. stabilizing inflation expectations may require more tightening than the recent pattern the fed has done. he also said the best path for

the fed is to move "rapidly" to the neutral range and see how persistent inflation is. in other words, see how much more the tightening is needed. take a quick look at the inflation numbers you can see where the fed is now and why they have a difficult and rocky road ahead. the core at 6.5% year-over-year and food energy prices boosting that core gasoline -- that core. gasoline prices are part of that. they are not coming down fast enough and it is interesting that tom barkan is opening the door to the fed and waiting to see where the fed is.

haidi: how are the markets approaching this? andreea: we saw the treasury yields come down. and we pull back a little bit from that. the whole inflation future is going to weigh on asia. and we are going to see a fairly muted open. investors continue to reassess and reprice what this means. we have this whole host of speakers that kathleen just mentioned come out. and it is worth mentioning that we are entering the earnings season in the u.s. with banks, jp morgan first off the block area -- the block. they want to see how financials in particular are dealing with these volatilities that we have seen.

and also more broadly how companies are dealing with the cost pressures coming through. that will be the focus and that is possibly going to be another headwind as well as this oil price that is now back above $100 a barrel. and that will keep trading in check. always mentioning investors, looking at what china is doing in terms of policy measures. there is talk of another interest rate cut. perhaps later this week, it will be a focus of the market. following the cpi report, it was highly anticipated and just reinforces those concerns about inflation out there. that will continue to weigh on trading. haidi: andreea and kathleen with the latest on inflation and the

impact on the market. we are awaiting the press conference by the nypd. we are waiting to hear more about the shooting and perhaps more details about who the shooter could be. he is still at large after the incident this morning on a subway station in sunset park. as we await, we just had an update from the spokesperson for new york governor kathy hochul. >> we are going to hear from police commissioner of the city of new york civil. -- sewell. ken cori, ed savon, james will update us on the investigation. we also have assistant director in charge of the fbi in charge of the new york office mike driscoll and the jt tf efforts with nypd ongoing as well as

special agent in charge of the atf, john devido. we will begin with a word from eric adams. >> he is talking but we cannot hear the mayor.

shery: you are looking at my pictures of the nypd trying to give an update on the shootings this morning. it seems they have encountered some technical difficulties there yet but you see the podium right there. the police commissioner will also be briefing us alongside the new york city mayor eric adams who will be joining through a live feed given that he is isolating due to covid-19. we are now awaiting more details on the shooting. we know 16 people were hurt in the attack this morning. police are seeking a black man with a green vest. let's listen to the commissioner. >> we are truly fortunate that this was not significantly worse than it is. as we reported this afternoon, a

man traveling on a manhattan bound train opened two canisters that dispensed smoke throughout the subway car. he then shot multiple passengers as the train pulled into the 30 six st station in sunset park. 10 people were injured by gunfire and an additional 13 were either injured as they rushed to get out of the train station or suffered smoke and elation. -- inhalation. none of the injuries appeared to be life-threatening. detectives recovered a nine millimeters semiautomatic handgun, and a hatchet. also found as a liquid we believe to be gasoline and a bag containing consumer grade fireworks and a hobby fuse. an hour ago, detectives located a u-haul van in brooklyn that we believe is connected to the suspect. at this time, we still do not know the suspect's motivation. clearly this individual boarded

the train and was intent on violence. we are conducting a highly coordinated investigation that it nypd detectives, the f ei nypd -- fbi nypd task force, and atf. the suspect is a dark-skinned male and was wearing a neon orange vest and a gray colored sweatshirt. we do have a person of interest in this investigation. but we need the public's assistance with additional information. we are asking anyone with information to call crime stoppers at 800-577-tips. shery: we seem to have lost the feed from the police commissioner. we had heard that none of the injuries suffered by the 16 people in the subway attack are life-threatening. but the motivation of the

suspect is still unknown and we are trying to go back to the press conference now. >> we cannot lose sight of victims in this city. we will use every resource we can to bring those to justice who continue to pray on the citizens of new york. i will ask the chief to come give details of the investigation. >> good evening, everybody. today at 8:24 a.m. aboard a manhattan bound train, 10 people were shot. seven males, three females, and they were moved to area hospitals. an additional 13 people suffered injuries related to smoke inhalation, falling down, or a panic attack. the information i'm about to give you is preliminary and subject to change right now. that train was between stations

59th street and 36 street station. in the second car in the rear corner was a dark skinned male. various descriptions of his height are given. he is heavyset, wearing an orange-green nylon type construction vest. he also had on a gray hoodie, surgical mask, and a neon green construction helmet. as the train approached the 36th street station, witnesses state the mail opened up to smoke grenades and tossed them on the subway floor. he brandishes a glock nine millimeters handgun. he then fired that weapon at least 33 times, striking 10 people. the male fled the scene as detectives are trying to determine his whereabouts. recovered at that scene was a

glock 17 9mm handgun. three extended magazines. one was in the weapon, one under a seat and one in a backpack. we had 33 discharged shell casings. 15 bullets, five bullet fragments, to detonated smoke grenades, two non-detonated smoke grenades. a hatchet. a black garbage can. a black rolling cart. gasoline, and a u-haul key. the u-haul key at the scene led us to the recovery of a u-haul van a short while ago in brooklyn. the man who we believe is the renter of this u-haul is frank r james, male, 62 years old with addresses in wisconsin and

philadelphia. we are endeavoring to locate him to determine his connection to the subway shooting if any. the two crime scenes, the subway and the van are very active and are still being processed. we are asking for anyone's help with information. cellphone video, witness information, or if they can identify the perpetrator where the renter of this vehicle, to call crime stoppers at 800-57 7-tips. there is a $50,000 reward right now. $25,000 from the new york city lease foundation, 12,005 hundred dollars from the mta, at 12,500 from the local 500. -- $12,500 from the mta, and 12,500 from the local 500.

with that, i would like to turn it over to mike driscoll. >> star mayor, we are ready for you. -- mr. mayor, we are ready for you. >> thank you, commissioner. as we indicated, today was a difficult day for new york. days like these are playing out too often across america. as mentioned, people struck in the heart of oakland. -- brooklyn. we saw a crime scene, turning a subway into a war zone as a smoke bomb went off and shots rang out. [indiscernible]

the mta crew bravely cooperated with passengers and lives were saved. the injured were quickly taken to area hospitals to recover. i have been outspoken about my commitment to protecting public safety. we will continue to do everything in my power -- [indiscernible] this is not only a new york city problem. this violence, these guns, the relentless shooters are an american problem. it will take all levels of government to solve it. it is going to take the entire nation to speak out and push back. it allows innocents to be

sacrificed on a daily basis. it is as easy as picking up a piece of wood at a gun show. there are over 400 maya guns in this country alone. the u.s. gun homicide rate is 26 times that of other high income countries. 100 people die in gun violence every day. [indiscernible] from schools like columbine, sandy hook, two festivals in las vegas, to nightclubs, to movie theaters and yoga classes across the nation. these killers have used weapons of mass destruction to massacre innocent people. they control no armies or military forces, yet these

individual killers terrorize our nation. i want it said that this city is not going to adapt the dysfunction. attacking gun violence means changing gun laws. we can't clean up this flood while water is still pouring. to be clear, we will not surrender all americans to this cult of death. [indiscernible] i will not stop until the peace we deserve becomes the reality in our streets. we will end this epidemic and capture the individual responsible for today's attack.

we will capture him and prosecute him to the fullest extent of the law. to fdny, the first responders, in collaboration with the federal government -- [indiscernible] >> thank you, mr. mayor. i would like to turn it over to mike driscoll. mike: thank you, commissioner. i want to start by expressing our hopes and prayers that the victims of this event will enjoy a quick recovery. they are our primary focus right now. i also want to echo the thanks for the partnership of the nypd, etf, and the partners contributing to this investigation. the fbi and nypd joint terrorism task force is fully engaged with this investigation providing assistance through manpower, technical assistance, and basically everything we can throw at it. we expect the process to be a

long one as we gather all possible information to track down all possible leads. i would encourage you to please reach out to the nypd tip line at 1-800-577-tips. as is frequently the case of many of our current investigations, everyone has a cell phone in their pocket. there is a lot of video out there. if you have digital information you would like to share in connection with this investigation, please visit fbi.gov/brooklynshooting where you can upload that information. he heard the name of a person of interest. vehicle -- video would be helpful or any witnesses that can come forward to provide information to help this investigation. thank you for your participation and for your partnership in the course of the investigation. >> we will take a couple questions. reporter: [indiscernible]

>> we are not sure. we have a number of resources that are coming on foot and doing video canvassing as well to show where he went. reporter: [indiscernible] >> based on preliminary information, there is someone connected to our person of interest. he mentioned homelessness, new york, and mayor adams. as a result, we are going to tighten the mayor's security detail. reporter: just to be clear, this person frank james is not the person of interest? >> i don't know how to answer that. >> we have no one in custody at this time. we are looking for frank james. we know he rented this u-haul van. the key of that u-haul van was

found at the crime scene. reporter: and mr. james made those social media posts? >> we are pouring through that, but yes, correct. reporter: [indiscernible] >> we are looking to determine if he has any connection to the train. we know mr. james rented that u-haul truck in philadelphia. reporter: [indiscernible] >> we are not calling them threats. someone made some concerning post and we can't contribute it to that individual yet. but out of an abundance of caution, we are tightening that security detail. reporter: [indiscernible] >> that is subject to investigation. we don't have that information yet. reporter: does he have a criminal record?

>> [indiscernible] >> mr. james is just a person of interest we know right now that rented the u-haul van in philadelphia. the keys to that u-haul van were found in the subway. in our shooter's possessions. we don't know right now if mr. james had any connection to the subway. that is still under investigation. reporter: [indiscernible] >> the crime scene is still being processed right now? -- right now. the van is being processed and the subway is being processed. it is too early right now to tell. reporter: can you explain where this u-haul was located? and you said you are investigating videos, but can you confirm that with him in the video?

>> the youtube videos? there was a man who posted, frank james. we are working to see if that is the person who rented the video. reporter: [indiscernible] >> kings hardware in brooklyn. reporter: is there anything more you can tell us about the posts? what was it that was said about the mayor? >> they were general topics of concern and i don't want to go into too many details about the mayor's security. complaint about hummus this and complaints about new york. just comments that are the subject of investigation at this point. reporter: [indiscernible]

>> we know that there were three stations that the video wasn't working. we are still investigating that to see why or how if there was a mechanical problem or electrical issue. why those videos weren't up. there were no issues with police radios. reporter: one of the first officers on the scene said his radio wasn't working and asked one of the teenagers to call 911. >> officers who work topside if you will, when they go down in the station, they have to switch frequencies. if they not -- did not switch the radio over, they would not be able to transmit in the subway station. it was user error, not a problem with the actual radio. reporter: how many officers are assigned to the station? >> we don't typically assign officers to subway stations. officers patrol on a rotating

basis. they ride trains, come out, and patrol the stations. officers do station inspections it we've been doing that since january. that station was patrolled several times today but there were no officers present in the station at the time of the shooting but it had been patrolled several times on this calendar date prior to the shooting in the early morning hours. reporter: do we know if mr. james has ties to new york city? >> we know mr. james has addresses in wisconsin and philadelphia. as far as new york, it is still under investigation. but he is just a person of interest right now in this case. reporter: [indiscernible] >> we know the shooter entered the station on kings highway. we are asking for anyone who knows from kings highway to 35th street, anybody who sees him or

any information, please call crime stoppers. reporter: [indiscernible] >> we literally have hundreds of detectives out in the field right now pouring through video. in train stations, the egress is, the recovery sites. we hope to have clearer pictures of who we believe is the shooter. reporter: the weapon that was recovered, has that been traced back to mr. james at all? [indiscernible] >> as far as pulling the trigger, that is still under investigation as far as the firearm concerned. we note it is not stolen. we are working with partners in the atf to track back to the point of sale. reporter: your physical description of james, does it

match the description of the suspect? >> as i said, there were two smoke grenades thrown and we have various descriptions of height. the description of the man with the vest, we are looking through all possible leads. reporter: [indiscernible] >> thank you very much. >> thanks, everyone. haidi: -- shery: you have just been listening to the press conference by the nypd. we got description from the police commissioner and the nypd chief of detectives who talked about a gunman firing at least 33 times. he also said that the city is offering a $50,000 reward for people who call in tips. mayor eric adams also gave a statement through video given that he is isolating because of covid-19.

he used the opportunity to rail against nonviolence. -- gun violence. we will try to figure out what this means going forward. let's bring in freddie guba who is at the scene in new york. tell us about this person of interest. reporter: as you heard, frank james is his name with addresses in wisconsin and philadelphia. it is still unclear if he is the gunman that they are searching for, but he is a person of interest. that is really all we know so far. we also know that he had two smoke grenades in the subway and he was very prepared when it comes to gunpowder and a hatchet. hatchet. the modem is unknown. we know the manhunt is ongoing. that's all we got from the press conference after a day in a long search. haidi: what do we know about the

disruptions when it comes to subway service in the city more broadly. >> it looks like the lines are ramping back up. the 36th street station is over my right hand soldier, it is still closed. still an active crime scene and that will be crucial in terms of subway delays. the mental trauma that comes with this, there is hesitation. shery: getting guns off the streets. >> is not alone. ghost guns, guns you can make at

home that are not licensed or tracks. eric adams ran on ramping up the city after covid, pushing a return to work, pushing commuting, more traffic when it comes to air travel. this is not a great look, we will see how he is able to motivate more people to commute to work. shery: kriti gupta joining us. let's take a look at the markets. u.s. futures are gaining after we saw the s&p 500 falling for a third consecutive session in new york, the gains earlier were driven by speculation perhaps inflation could be near a peak, but wti prices did not help, oil continuing to surge. we have seen headlines coming in

at 8.5 perhaps, the most since like -- late 1981. haidi: base effects from covid start to roll off until the april date. joining us is to take a look is a managing director. this is being exasperated by the supply-side shock of the war in you and as well. >> it impacted supply, goods. consumers leading to buy physical goods in an environment where they could spend on services. that's going to start coming off in the coming months, going to be replaced with conflict

induced inflation which is impacting energy costs, food costs. most importantly, it takes away from discretionary spending. see growth slow and inflation slow. haidi: how are playing opportunities given yields continue to rise when it comes to australia and new zealand? >> overlaying positions. to be short, interest rate writs -- risk is a negative carry trade. it is not something you can hold structurally.

we are probably getting close to peacock christmas with regards to the fed, but the reserve bank of australia is a little bit behind the curve. back to us a government pounds duration to chinese exposure, easing monetary policy. low inflation. numbers of 5% two or three years

ago. they are suffering from deflationary spiral across the globe that the developed markets suffered in a post-global financial crisis. with the interest-rate differential having dissipated, you want the liquidity of the u.s. treasury, and now that yields are higher, is looking more attractive. i am expecting them to continue to cut rates. they will have to continue with fiscal stimulus and easy monetary policy in order to ensure the economy comes out of the more prolonged downturn. shery: daniel, it was really good talking to you. you can get around up.

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shery: automakers around the world are moving to secure supplies of materials amid worries of possible future shortages. one company suspended production as lockdowns and china continue. lvmh is warning of a negative impact from consumer demand in the country. the wine and spirits unit failed to grow due to supply constraints though it's fashion business will be forecast. taking a look at the commodity space, oil to use to gain ground. $100 a barrel level. we have seen a partial easing of virus restrictions bringing in more optimism over the demand outlook.

we are seeing gold futures at the moment, worries about droughts. impact on food prices as the ongoing lockdowns across china, this is impacting the supply chain. not to mention consumption patterns are changing. joining us is a cofounder, it's good to have you with us. it's interesting to say

lockdowns have a negative impact on food consumption. explain this to us when we are also seeing supply disruptions. guest: absolutely. when consumers are in lockdown, they tend to shift away from things like meet and to more basic staples to things like rice and noodles. they also tend to consume less. even previous lockdowns, that typically did not offset the consumption they had in the restaurant. not only is it disrupting supply chains, we seeing shifts in consumer eating habits as well. haidi: we mentioned the shanghai lockdowns and virus restrictions, but we do have the big issue in ukraine, given they are called the breadbasket of europe, how is that factoring in? guest: ukraine is one of the

major suppliers of corn to china, prices in china are near record levels. it's probably going to have to come from the u.s., and we have seen some shifting happening where we have seen large purchases of u.s. corn. haidi: you talked about how the searches in wages is constructed -- expected to be driven by growing chinese demands. guest: the pandemic is playing into it. the logistics disruption and china are affecting the ability to transport things like fertilizer, and we also have a shift in demographics where younger consumers are generally using things like baguettes and

western-style bread, and does require imported wheat rather than the wheat grown domestically. there's going to be a long-term trend as the consumer tastes shifts with younger generations. haidi: how do trade sanctions play into the global supply and demand dynamic? guest: the biggest issue has been the logistics problems out of ukraine. russia is still able to export wheat and has been relatively good volume coming out of russia, that is flowing into nearby countries in middle east and northern africa that generally rely on cheaper weed. haidi: tell us about challenges, the production capacity around the world? guest: china has issues related

to whether, poor condition the normal. that's boosting the prospects for wheat imports. one of the beneficiaries is australia. even those as -- they might go to places like canada or france. haidi: great to have you with us. you can watch us live at tv , also dive into any securities and functions we talk about. join us on the conversation. this is for bloomberg subscribers only. check it out. this is bloomberg. ♪

haidi: traders are betting the yen could lose the most over the next month. let's bring in bloomberg's reporter. we've had a respite when it comes to young volatility,

guest: traders are betting that the yen can still move the most over the next month and a key reason for that is the yen has weakened so much, so quickly in the past few weeks and investors may have little choice but to buy into the yen rally. purely a technical trade. that's have surpassed. haidi: what is driving began towards a 20 year low? guest: i can catch a break.

you are absolutely right. it does come down to the rate differential story and how dovish the bank of japan is. is that divergence continues to ripple through markets. haidi: they winding interest rate gap between japan is likely to create upward pressure on long-term rates. if direct intervention is an option, what are available? reporter: i would suggest going

through some stories written by some of the things that could happen, and key to all of this is still yields. how the bank of japan may be able to russell. haidi: the chairwoman of the world's largest bicycle maker spoke exclusively to bloomberg. >> it's difficult.

even the most simple things they can ask for. six months. >> you are obviously getting different components from different areas, restrictions, how do you navigate through these supply chain snags? >> maybe we are already used to it. this is a simple industry. but, the supply chain is scattering around the world.

it's a tough job. long before covid. covid makes it even worse. >> lockdown in shanghai. they are trying to maintain operations and a closed loop system. how is it affecting operations? >> currently, because the container cannot reach the factory, our finished product cannot ship out. we are so scared it may rain and another countries are wet, then

what to do? >> how do you view china as a manufacturing center, given you facing tariffs, also when it comes to covid zero? does it change how you view china? >> we understand we can put all of our eggs in one basket. we tried in europe. >> you still have more than half of total capacity coming from china. is that going to change? >> it will still remain the theme for the next two to three years.

hopefully we can cultivate the china market more so we don't have to build extra capacity. >> when do you see it being fixed? >> i think the issue is being solved hopefully by the end of this year. for those difficult ones, maybe by 2023. then, the shipping will take a

little bit longer. eventually all of this will come to an end. >> you had to raise your prices for bikes to pass on the cost to consumers. how much further can you raise prices? >> because people are more conscious of of the bicycle is the best way to make the earth clean. i think we can pass on. we will try even harder to bake our products more affordable.

shery: breaking news out of japan. machine orders for the month of february, pledging 9.8%. bigger construction expected -- contraction expected. your are near, areas accounting for about 90% of gdp, but still, a big. haidi: another fresh record up from a previous record high, 26,300 local covid cases for april 12. this comes as residence are

easing, the number is smaller them we initially saw. the vast majority are subject to tight restrictions, keeping them in their homes. this comes as we saw the u.s. order non-emergency staff in the shanghai consulate to leave china. generating criticism from americans who remain locked down . shery: animal studies confirm, part 24 planning to raise millions of dollars. automakers are set to produce santa fe hybrids in october. coming up in the next hour, ubs remains bullish on china. we will also talk.

the market opens in japan, south korea and australia are next. this is bloomberg. ♪

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shery: welcome to daybreak asia. haidi: major markets have just open for trade. china switches covid strategies,

new york city police identified a person of interest. japanese stocks are higher at the open. shery: the japanese yen holding steady, we have seen eight sessions of losses against the u.s. dollar. getting close to a 20 year low, talking about the 125.86 level. we watching jgb, the 10 year yield is rising, core machine orders are rising. much bigger plunge that is expected. take a look at korean stocks, we are seeing a rebound up about a quarter of a percent, the korean mom been declining for the last five sessions, we have seen

jobless coming in showing a resilient labor market, 2.7% unchanged from the previous month, but it will be about the be ok rate decision coming up on thursday in asia, and if they are less hawkish than expected, we could significantly see more pressure on the korean won. haidi: we see pressure when it comes to the kiwi as well, this idea of a 15 basis points hike in a move, we are baking in 25 basis points, a fourth straight meeting at the upside path is pretty clear when it comes to the kiwi dollar. we could also see upside even if they only go for 25 basis points as well.

we are watching the 10 year yield, bond markets have been fairly steady for australia and new zealand after a pretty significant upside move in yields both here as well as well as a relentless selloff in treasuries. we're seeing upside of about 1/10 of 1%. s&p futures seeing gains without 3/10 of 1%. continue to see the upside when it comes to oil in the asian session as well. just about 1%. the war is continuing after president putin vowed to continue the attack and you are in, and we are seeing some signs of some restrictions being lifted in chinese cities like shanghai, although a great majority of the population

remaining under some form of lockdown. shery: our next gas says small caps and volume stocks could outperform. inflation is a key issue. let's discuss more with a portfolio specialist, always good to see you. where do you see those opportunities in asia? guest: movie look at some opportunities on the ground, we expect to see within asia and when we look at places like china, the opportunities when it comes to marke performing, valuations, what china is expected to do, you're definitely seeing -- if we do

get to the point where stagflation does happen, we saw that back in the 1970's, what asset classes to be what? small caps as well as value stocks outperforming during that period of time. in asia, we are in a cycle where we saw a rise in we see this happening over the past 17 or 18 years, every time asia had positive returns. we saw that with the taper tantrum. even in those earlier cycles, we saw asia perform very well. we saw high-yield bonds doing

well as well. haidi: tech and growth are outperforming in the new legs of the rally. do you see that dominating in terms of value? guest: it depends. when we look at places like china, there are opportunities in tech as well. they have underperformed quite a bit. of course, and the rest of the rld, things are different. where do we expect to see growth coming in, whether or not inflation continues with economic activity. these are going to be important things. no one wants to see stagflation.

haidi: are you recommending more risk aversion? guest: not at the moment. looking at confusing equity positions due to the uncertainty. there is a lot more opportunity within the equity space, within china, there is a lot of opportunity. you have to be more careful and mindful, if you want to add more exposure towards equities. we need to see better economic progress. those are going to be important things. we will be more bullish when it comes to decreasing exposure.

vonnie: the attack has set off a massive manhunt. the wto has cut outlook for trade growth to 3% down from 4.7%. the wto said the war in ukraine could lead to a centering of global commerce. the u.s. sees human rights deteriorating globally as russia

continues this more in ukraine. an annual report says -- sri lanka has halted payments on our and debts in order to preserve its dollar stockpile for fuel and food imports. authorities negotiating with creditors. it follows mounting calls for the president to resign. 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. haidi: next, more on inflation.

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>> i'm not going to wait to take action. i'm doing everything in my power to bring down prices. shery: president biden speaking about rising prices, u.s. and asian edits hottest since 1981. let's bring in our global economics editor. once the takeaway? >> the fed is behind the curve, the inflation rate is higher than people had forecast. the highest level of u.s. inflation since december of 1981. going on 41 years. pressure is on the fed to move fast and aggressively to get

rates higher and bring it down. the monthly gain was 1.2%, the biggest monthly gain 2005. check out -- take out and energy prices taking higher. up 6.5% year-over-year in march. we know gasoline prices have been surging, food prices go up. gasoline prices up 18%. that can't last forever. our prices down 4%. down for two months in a row. that's been one of the main things driving up the core rate of inflation, people can't get used cars, they see chip shortages. is it a peak in inflation?

that's a good question. services prices are not coming down. housing number, rent up, those are not the kind of numbers to get the lower inflation the fed would need to say we are having success, as you know, that a lot of ground to cover. haidi: fed officials speaking today, what was the reaction? >> let's start with a fed board governor. she said she's not taking a signal from one month cpi numbers because of the core rate not rising. the monthly rate went to 0.3%. the fed still has some

expeditious things to do to get to the neutral rate, move rates higher. speaking a couple of hours ago, the president of the richmond fed said looking at post-pandemic forces, supply chain constraints are going to look better but maybe not good enough. labor levels are not as tight, less globalization. all of these years and years of deflationary forces not going to immediately return. he says stabilizing inflation expectations may require more tightening, the gradual hikes are in the camp of 50. he said the best path for now is to move rapidly to get to the neutral rate that is not so high or so low.

that see -- then see how inflation persists at that point to see if the fed needs to pause or do more. definitely leaving the door open. haidi: kathleen hays. speaking with central banks, the official cash trade -- rate is continuing to seek to carve rise length -- curb rising inflation. the growth risks arising. >> i will get to that in a moment. 50 basis points not out of the question. february eventually going with a 25 point hike, a balanced decision.

today's meeting is a rate there is not going to be a statement, not going to be a press conference. if they did go to a 50 basis point hike, you would think rates. inflation is a key factor, hottest and 30 years. other factors need to balance also. omicron rising, 60 deaths, consumer confidence at its ensue thousand four. labor markets are tight, house prices are coming down, fell

2.3%. very strong desire to get inflation under control, not at the expense of growth. shery: paul allen joining us from sydney. we are watching the currency space, kiwi dollar unchanged. iron prices rebounding. we have seen the multi-week rally in the aussie kiwi, what will happen with the rbn, we are watching those moves. seeing a strength for the korean won after five's ♪ sessions of losses. we are talking nine sessions of losses already. close to the 20 year low.

we have plenty more to come. this is bloomberg. ♪

haidi: quick check of the headlines. airbus is defending its decision to keep importing titanium from russia. the playmaker says it would hurt aerospace manufacturers. russia supplies about half of their titanium. credit suisse investors are being advised to hold the board of directors accountable in mistakes made. according to reports obtained by bloomberg, shareholders are recommending investors vote

against it. the boat will be held on april 29. sunac has missed the first payment on a dollar bond as worries emerged. sources tell us bondholders have not received payments. according to the offering, there is a 30 day grace period to avoid triggering a default. [indiscernible] the structure global supply chain, resumption will depend on the government. they are continuing to assess the suspension impact on finances. bloomberg has learned to will lingo is suspending it ceo over concerns about finances. efforts to raise new funding led to questions about accounting.

they were working to raise as much as $200 million. mach 2 we know about this person of interest and what our police looking for right now? >> officials just ended a presser, a 62-year-old man with addresses in wisconsin and pennsylvania. they believe he is a person who brought a you all -- u-haul. they believe he is the person that paid for it. it is not clear how lc is connectedh to the incident. haidi: when it comes to gun

violence and crime in new york city, shootings we have seen. >> it comes as the city is grappling with a real uptick in shootings overall. there have been 50% more shootings. the city has been grappling with that, and eric adams has made that a signature part of his campaign and first 100 days of his administration. the administration has been trying to address that. it's another high-profile incident that is prepping the city. shery: how are new yorkers dealing with evening commute? >> the stop itself is closed as

we continue to investigate the scene, there are some sporadic delays. otherwise, it is still running and has been for a majority of the day. shery: taking a look at the movers and japan. the stock is rising 8% at the moment, a big downside, this after the company said it confirmed a drug disturbed the development of embryos or fetus been. that is driving the losses.

haidi: we are seeing a cautious state of play when it comes to equities trading as we continue to contend with the ongoing war in ukraine, peace talks not going anywhere according to president putin. we're seeing upside pressure when it comes to oil pressure. the kospi is hanging onto modest gains. in australia, gains are being driven by energy. 1.5% higher. in new zealand, the focus is on the rbn decision, 25 basis points priced in but a number of analysts are toying with the idea of 50 basis points.

coming up next, sri lanka cautioning about unprecedented default on its dwindling dollar stockpile. we will get the latest, next.

haidi: this is what we are getting when it comes to australia, the april reading consumer confidence falling 9/10 of 1%. we are seeing the index falling. this is coming as we saw the residual impact, consumer confidence falling, in march we

saw 4.2%. this is suggesting as we see price pressure, seeing overtures to households. this is as australia heads into that may 21 election. sri lanka is warning of an unprecedented default, it's an extraordinary step. give us an idea of how significant this is. >> foreign currencies have slipped below, barely enough to cover imports that the country

needs. this reflects what you need to do on the ground. for the external story, it's a moment. some kind of restructuring coming down the road. they have named a negotiating team and it suggests some pain coming for investors. shery: we are seeing calls for the president to resign.

>> sri lanka is expected to engage with the imf. we will have to see what comes out. whatever comes out of the process, talking about a net wood door-style restructuring. probably talking about the bonds. maybe even imposing a haircut on investors. the imf is not the only game in town. china is giving more to those

meetings in washington. shery: joining us from hong kong. let's get to vonnie quinn. vonnie: rates will be raised to a level that neither stimulates. the balance sheet could come as soon as may which could lead to reduction starting in june. consumer prices rose in march putting more pressure on the fed to ask. president biden is said to be seriously considering a veteran as the chief banking advisor. he was an architect and has emerged for a leading contender. this is a nominee that canopies the progressive wings. boris johnson is the first u.k. prime minister in modern times who becomes guilty of breaking the law. he said he paid a fine for

breaching coronavirus lockdown rules. he apologized for the scandal and maintained he knew the gathering british rules. -- breached rules. >> it did not occur to me this might have been a breach of rules. i fully respect the outcome of their investigation. i offer a full apology. vonnie: in february, 36% of candidates said the average pass rate was about 41% and only 19,000 candidates pass the exam

in february. 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. shery: our next guest remains bullish on chinese equities. this is bloomberg. ♪

shery: a chinese developer missed its first payment on a dollar bond since concerns emerged late last year. they are now at eight debt payment crossroads. the china credit editor joins us more. what do we know and the broader

credit stress and china? >> it looks like it may be trying to take advantage of a grace. . it has a lot of debt, extremely closely watched. sunac has shown willingness to make payments in the past and top leaders have taken out loans to help service at that. more broadly, it's a reminder along with the default we saw just a couple of weeks ago that the credit stress in china, and while we are seeing the pace of default slow, we saw many metric stretch. we are reaching an inflection point.

even the onshore market is showing some increased signs of stress. losses are at a record low, yields continue to rise, hit an average monthly hive 25%. we are watching closely to see where we go from here and whether the market itself continues to be sustainable. haidi: what next? reporter: credit stress is likely to continue, developers driving real stress. i think there will be continued

focus on smaller firms that are taking to be signals of what and how authorities are going to approach credit stress going forward and what type of release they will offer. the broader background, lockdowns and shanghai are really weighing. all of this announcing a pullback in the rebound, this broader landscape how we can continue to try and improve sales. given the stress china is

confronting. haidi: take a look at shanghai. another day of record heiko -- covid cases. this as we continue to see some people release, let us a small number. further details are showing some areas hotels, shopping malls and government buildings. we're hearing their easing

restrictions that are part or discouraged, this comes as we see covid infections in the outbreak play out against other parts of china and other major economic centers. more broadly, global both management we are still seeing the rising tide of optimism being backed up by more broad-based. >> march data will come up next

monday. multiple lockdowns including shanghai. that has brought -- maybe rate cuts. it's also possible for april as well. haidi: shanghai was supposed to have lifted some disruptions, anecdotally it looks like disruption continues. >> yes.

the lockdown continues. we are seeing some positive signs and a lack of impact on the economy. impact and consumption will last for a while, actually through the end of april. for the production side, the impact is relatively manageable because for some companies, manufacturing is still running close to load management, but for some multinationals, they have to shut down. we are also seeing in the auto sector, and for the travel,

entertainment services, including hotels. shery: perhaps the impact will be pretty contained? broadly speaking, this chart showing how the overall earnings estimates have been slashed from highs in mid-march. wondering what the implications are going forward, if you are thinking margins would be pressured. >> there is definitely some continuous pressure. currently, we expect consumption to drop from the 6.7% to around 4.5%. that is a big drop.

even for march and april, we think consumption can drop 1% to 3%. that's a 3% to 4% drop on the consumption side. for the investment side, recent data supported by the local government -- on the whole, that will last into the second quarter, especially for april. haidi: we are seeing the yield premiums over treasury. >> on the debt side, it's currently around 2.7%.

if we have a hard cut, the rate will go down a little bit. i think it is relatively stable. our view is relatively strong. haidi: going forward, do you expect to see the impact in terms of the demand, domestic side, we are seeing big companies being affected.

>> lockdowns definitely had more impact on the overall economy. comparing to the impact on production and consumption, the impact on consumption is so much bigger. especially on the services side, we expect services to be at 60% of the 2019 level. we think the situation will continue into the second quarter. for the production side, mounted

to closed loop. it's relatively manageable. as a whole, there is an impact on the economy 5.5% of targets and we need a more supportive policy. haidi: next, changes a bike manufacturer is making to its product lineup.

this is bloomberg. ♪

shery: the world's biggest bicycle maker contributes about 9% of sales. the chairwoman spoke to bloomberg about how they want to change the perception of women in cycling. >> bicycles are a business of men. it's based on men's measurements.

the levers, controls. the size of the men's hands. it took me more than -- a smaller lever. it is extremely important, we are entitled to have the product. based on our needs. our measurement. our taste. >> for a woman it's like, by a smaller bike. >> that's like -- shrink its.

make the bicycle shrink. we design it properly based on women. >> what do you see as challenges? >> most are people who know nothing. >> in terms of female leaders in taiwan, it's quite a strong -- small what needs to come see

more women in leadership? >> i always was told you are overqualified for the job. you just keep on working, ask for fair, equal opportunities. we are not asking for any privilege, we just need a place to prove ourselves. >> to you have any kind of target? 9% of your sales now, would you like to see it higher? >> i always aim high. because women are half of the

population, we should be at least half of our sales revenue. i don't know when that will come true, but i will say, girls, keep on going, keep on fighting. ♪

david: good morning. welcome to "bloomberg markets: china open" ♪ ." oil above $100, inflation worries, as cpi rises the most since 1981. shanghai posting a new daily record for covid-19