runaway inflation. cpi in india soaring above the target range for the third straight month, which could force the rbi to hike in june. haslinda: in the markets, perhaps it is a relief rally. a relief u.s. core cpi fell short of expectations, despite cpi itself getting a fresh record in 40 years. looking at where we are in terms of the benchmarks. have gained for australia, japan, and malaysia. but losses for the csi 300 index. trade numbers stronger-than-expected. we heard from china that the traded bierman's increasingly severe -- the trade environment is extreme seeing the severe. -- extrinsic -- x recently severe. and slightly in positive territory.

the big when we are watching his new leasing -- -- new zealand after the basis point hike. 15 got it wrong. the yields in new zealand trailing lower. 50 basis point hike will do the job. yvonne: that frontloading of hikes might be enough to fight inflation. looking at the kiwi assets. the spike in the kiwi, that is coming on the back of that. two year yields are tumbling 12 basis points lower. let's look at how treasuries are doing. we saw similar tumbles in the yields after the inflation number. normally inflation of 8.5% can send yields spiking. it was the opposite. consolidating with the core cpi. last thing about commodities.

still tracking what has been going on. wti with brent back above $100. vladimir putin saying peace talks are coming to a dead end. the china story, as well. some cities starting to experiment with trying to ease on measures when it comes to covid, travel requirements, the like. that is helping the commodity trade this morning. shane hike crude with gains of 5%. -- the shanghai crude with gains of 5%. haslinda: let's bring in mark cranfield. a massive move, 50 basis point hike. some say that will do the move. maybe the increases in the coming months will not be so big. >> maybe it is an encouragement for the fed to do 50 basis points. you load up as much as you can in the near term. it makes the job a little bit easier further down the road.

that is certainly the reaction in the derivatives market since the decision this morning. we are seeing the rates coming off. particularly on the long end. across the new zealand curve. traders thinking the very strong action in the near term is going to mean new zealand gets to a peak rate much sooner than the market was expecting a few days ago. the bank of canada later today, 50 basis points. there has been a lot of talk from the fed. they might be encouraged to see the reaction of the yields coming down after the decision. certainly interesting. it has come off a little, but not too much. new zealand shares are lower. the central bank of new zealand should be happy with the decision. yvonne: you mentioned the u.s. inflation. the reaction was treasuries were

up and the dollar was a softer. how do you read into these moves? is it the fact that we have reached peak inflation? that the fed can ease off of the brakes, or that they will have time? i don't know what caused it. >> the initial reaction from traders was the core cpi could be close to peeking out. it did not quite match the estimates in yesterday's number. so that is probably what bond traders are looking for. looking at the turn coming, for the core cpi. it might be gradual, it might take quite a while before we get to low levels. combine the fact if the fed goes 50 basis points, it may then again in june. that would be aggressive. that would get people more confident the fed will get ahead of the inflation situation. they have obviously been behind

so far. so strong action from the fed, and peeking core cpi. put them together, it means bond traders can be more comfortable that we are getting close to the peak in yields. we might still see 3%. but we are probably closer to the end of the range than we were a few weeks ago. haslinda: 50, maybe 50 for the fed. what does it mean for central banks do out tomorrow? >> they say bank of korea at the moment is a very split economy. not sure how much the bank of korea may tighten if they do at all. bank of singapore seems more clear-cut. people are not only expecting tightening, but possibly aggressive tightening. when singapore looks at what happens in new zealand, they were probably encouraged to say do your large tightening

earlier, it can be a lot easier further down the road. most likely, we can see policy tightening in singapore. it can be one of the biggest we have seen for more than 10 years. yvonne: we will definitely look out for that and get your reaction tomorrow. mark cranfield joining us on what to expect. still waiting for the trade numbers out of china. kind of looking to see green from what this all means, in terms of the trade picture. the custom spokesperson saying the external picture when it comes to trade is looking graver. let's bring in our next guest, cui li. we talked about how we see record cases in shanghai. there are toxic tweaking covid 0 -- -- there are talks of possibly tweaking covid zero. do you think the governor will do everything they can to maintain the 5.5% growth target?

>> i think the government -- good morning. i think the government do want to balance the economic situation with covid control. we do see -- actually the last couple of days that the situation may be peeking. in the case that cases outside of the quarantine area are starting to plateau and come down. that is the definition of china's zero -- social covid, zero covid in society. if that is the case, there might be a possibility that something will come out of this lockdown in the next several weeks. in most countries in the few weeks, then the cases start to come down. in the near term, what we watch

closely is significant supply disruptions to the supply chain. in terms of economic costs, the near term economic costs from the lockdown. also watching whether the case from shanghai will spread to other cities, as well. i think in terms of magnitude, it is similar to the third quarter of last year, in terms of the impact on the economy. after that, the economy will bounce back. i think the economic situation, there is a lot of near-term uncertainty. -- yvonne: there is -- if they are going to deploy some kind of stimulus, i wonder if

there is a risk they will not be deploying that stimulus in the right parts of the economy, given the fact you still have a lot of cities going through these rolling lockdowns, whether it is partial, and if you have the restriction on mobility and transport. >> i think with the stimulus, we are looking at controlling covid first. in the cities and regions under lockdown. i think if people cannot even leave their house, how can you expect them to go to the construction site? it is difficult to have an immediate impact. in the near term, the policy priority would be to stabilize the situation. making sure the liquidity condition in the economy is adequate. in last years's situation, it showed once the covid situation is under control, the activities bounce back. this year, the government is rolling out more support than

last year. a lot more. so i think once the near term uncertainties pass, there will be more activities and more momentum coming back. haslinda: despite what you say, that growing calls of a recession in china, we see foreign capital making an exit in such a huge way, at a record pace. what do you make of those discussions? >> it is hard to define a recession in an economy that grows 5%, 6%. it depends on where you see the potential. in terms of the economics, i think there are quite a few supportive factors. we expect trade to be positive. not as high as last year, but still most likely to be in

double-digit growth. and the sector will continue to do it. possibly find that we are increasing -- there's a lot of room for upgrade and additional spending. more important change this year, fiscal policy terms of contraction last year to this year. i do not think there is a big worry of recession. especially if they maintain a 5% plus growth. in terms of capital outflow, after the crisis think inflows -- after the quite says think inflows, you will have liquidity tightening in the last couple of months. and i would also argue china is

a surplus country, and it doesn't really rely on external inflows to finance payments. haslinda: i want to talk about the yuan, it has been resilient despite the overhang. give us the expectations that the environment will continue being challenging. have we seen the yuan peak? >> we think the appreciation, it is not very much anymore. fundamental, what is relevant is balance of payment and surpluses. and trade remains to be quite strong. this year, despite the rising commodity prices, it will stay above 1%. that is solid support. and another thing i would mention when it comes to capital

outflows, what matters is not some moderate capital outflows from nonresidents, it is the capital outflow from residents. because of capital outflow from residents, that was the reason of appreciation in 2015. back then, rather than borrow a lot of dollars, banking on stress, and when the exchange rate expectations turned, they had to unwind the decision. the same situation is no longer there right now. you have long currency position right now. there is too much dollar already. so i don't think there is a big demand for the dollar. even further appreciation would be small. we think renminbi will stay strong this year. even the strong dollar. yvonne: we had our colleague

talking about that. the massive dollar holdings they still have to provide some of that buffer for the currency. bonnie tu -- cui li, thank you. we are still ahead in talking about what is going on with monetary policy. the direction of india's central bank and what it means for the bond market. inflation numbers came out yesterday. this is bloomberg. ♪

haslinda: this is -- vonnie: this is "bloomberg markets: asia." i'm vonnie quin with the first word headlines. -- identified the suspect in a subway attack that left at least 10 people with bullet wounds during the morning rush hour. kriti gupta has more from the scene. >> tuesday morning in brooklyn, new york, a gunman opened fire

in a subway station after releasing two smoke canisters, injuring 23 people, including 10 with a gunshot wound. luckily, no fatalities. authorities found a nine millimeter handgun, two on detonated smoker needs, and a hatchet among other items. the police department identified a person of interest based on keys to a rented u-haul van. the manhunt is ongoing. kriti gupta, bloomberg, new york. haslinda: and we speak with new york city's mayor later at 845 a.m. wednesday in new york, 8:45 p.m. in hong kong. the world's top independent oil trader intends to completely stop transactions involving russian origin crude and products by the end of this year. they say volumes will diminish significantly in the second quarter before being fully phased out. in un email statement, they reiterated they would not enter into any new russian crude and products trade.

sri lanka has pulled payments on foreign debt to preserve its dwindling dollars stockpile for central -- essential crude and fuel imports. authorities are said to be speaking with creditors and our warning of a possible default. the announcement following calls for the president and his brother to resign. boris johnson is now the first sitting u.k. prime minister in modern time to have been found guilty of breaking the law. he said he paid a fine for breaching coronavirus lockdown rules his own government passed. while apologizing, the british media -- while apprising -- apologizing for the scandal, he said he didn't know the gathering for his birthday breached rules. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin, this is bloomberg. yvonne: let's check on the

developers now. share focused after the first payment on dollar bonds missed and concerns of the financial health that emerged last year. here's a look at the bonds. another struggling developer has been general. let's bring in jill wilkins -- rebecca wilkins for more. you have been crunching the numbers. what is the credit stress, what is the credit tracker looking like? there are signs of an inflection point, you mentioned? >> i've got you -- yvonne: we are still trying to work out the audio issues. we have been talking about how it was one of the safer options when it came to china. a lot of questions about covid lockdowns. how it impacts the recovery in chinese high-yield. more on that story and more analysis. this is bloomberg. ♪

yvonne: you are watching "bloomberg markets: asia." i believe we were able to bring back rebecca jill wilkins to walk us through the credit tracker. you talked about how high-yield reaching critical juncture. >> we see high-yield stress reaching an inflection point. all of these reaching new records in march. yields continue to climb, reaching the average of nearly 25%. we now see some of these big institutional investors paring back exposure for the long-term future of china high-yield credit, particularly for the offshore market. very much in focus, unclear what the future looks like.

we know it will be dominated by more state funds. unlikely to see the return of this very high yield and juicy yield in the developed part of that market. the other thing we are watching in the continued rise in defaults, there was hope after the surge of defaults late last year that we might see a slowdown in that part of the market. but with the payment miss and the default on dollar debt, failures in the market are still continuing to re-drive all of those delinquencies. when you look at that provincial stress and default, we see defaults by developers again, leading to the spikes in the hubei province. haslinda: what do defaults in china show about the current cycle of the property crisis, and what is to come? >> i think we are very much still in the phase where we see

defaults continuing to happen. the pace may have slowed up a little bit. but we are really not yet in the next cycle of distress, where we see more m&a activity, more coming in for these parts of the firm. and we are seeing the investors watching these to see whether they are an indication of authorities willing to stop the delinquency we have seen so far. but i think the broader thing to remember is china has been on this campaign for about a decade. it has really ramped up during the property clampdown. in some ways, you cannot have an effective pricing of risk without these types of failures and defaults. so we are looking increasingly at whether or not this market and the failures we have seen are contributing to a healthier credit market.

no investors are going to be entering this market, either onshore or offshore, with the type of complacency and expected support from the state we have seen in the past. in some ways, that is a very positive development. yvonne: there is some silver lining. what is next for chinese credit? order the potential flash lines we are looking for now? >> bond payments continue traveling off. so in particular, 30 days to make a payment on the coupon it missed. otherwise, it would be the first default on a dollar bond. they also have a hefty amount through this quarter, three other dollar bond coupons do this month. so keeping a very close eye on that. we have seen there was optimism with policy support. the revamp has come down much further. now investors are really eyeing whether there will be any kind

of concrete plans to resurrect the market with concrete policy action. haslinda: as always, good insight, rebecca choong wilkins. thank you. now with the quick check of the latest business flash headlines. credit suisse investors beginning to hold the board of directors accountable for mistakes made in the runoff to collect capital. according to reports obtained by bloomberg, advisers recommend investors vote against absorbing the bank. iphones assembler suspended production in shanghai as the company -- the policy -- the worst outbreak in two years in global supply chains. disruption of output at the site will depend on notifications from the government. sri lanka is questioning an unprecedented default for the dwindling dollars stockpile. coverage of that is ahead.

keep it here with us. this is bloomberg. ♪

>> 11:29 a.m. and shanghai, we are tracking all things china trade. we are waiting for official numbers to drop. if you are holding your breath, maybe it's time to take a breather. when it comes to chinese markets, they are seeing a pressure share when it comes to chinese equities. it's mostly a co-lockdown story. record cases in shanghai despite these kind of lock downs, but there have been talks about easing the quarantine rules for a cities. that's not really doing much in terms of turning around the

sentiment. northbound flows have been interesting. it seems like we are not seeing that same surgeon a-shares as we said yesterday on the back of what we heard from them. the third time in a week we heard from the premier on warnings about the economy. right now we are still waiting for, if it has, we will get the policy cuts. >> we are waiting, and the broader markets, similes release, some gains for asia. we talk about relief that has to do with the core cpi in the u.s. coming in short of expectations despite the fact that cpi is at a new 40 year high. the nikkei 225 back from lunch up 1.7%. that weekend helping sentiment, especially when it comes to those exporters listing the nikkei 225. looking up a kiwi, it fell, along with yields in new zealand on the back of that massive 50 basis point hike by the ibm data

move, that will help to contain inflation, which is at the highest level in about 30 years. perhaps with the frontloading, our vm debt isn't likely to do that big move again in the coming months. let's go to first word news with vonnie quinn in new york. >> the governor will be raised to a lever that neither stimulates nor flows the economy. the decision could come as soon as may, which would lead to reductions in june. u.s. consumer prices rose in march weather now since 1981, putting more pressure on them to act. the wto has cut out a merchandise trade growth to 3% down from 4.7%. in its latest assessment, the governor says the war in ukraine could lead to a broader slowing of commerce. they also see the number of headwinds to trade growth, including food insecurity and a

possible resurgence. the u.s. sees human rights deteriorating globally, as russia continues its war in ukraine. an annual report from the state department for 2020 moscow's invasion, allies acting around the dome past region of ukraine. worse may, as russia tries to take more the country. president biden is said to be seriously considering president -- treasury department michael as the fed's chief banking civilize her. farr, who his an architect, has emerged as a meeting contender. he seen as a nominee who could appease the progressive and moderate rings of the democratic party and would support in the narrowly divided senate. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. haslinda: sri lanka is warning of an unprecedented default and has halted payments on foreign debt as it looks to stockpile

dollars for essential food and fuel. let's find out more from bloomberg's managing editor. what pushes sri lanka to suspend payments now? >> good morning. sri lanka was ahead of the rest of the world. it had been struggling to make payments even last year, but at that time, the political and central-bank was adamant that it will not be vote. sri lanka has never defaulted, and the central bank said that we will never default in the fed. having said that, the pandemic, the war in ukraine, all of these global events and cost policies within sri lanka have pushed the nation. they're running out of money to pay for essential imports of fuel. an island nation with key essentials have any be shipped in. that is why sri lanka has taken this hard step and missed

payments on foreign debt, and instead preserved those dollars to pay for food as citizens protest at home, back on the island. yvonne: foreign investors are trying to figure out how much they can salvage, but how do you see this playing out? we are still looking to talks with the imf. >> there are key steps that need to play out. in sri lanka, the government and the central bank is entirely new to the sensation after the cabinet to the president and their prime minister needing to work together to form a committee that will hold off the bondholders in the imf. bondholders need to come together and reach some sort of consensus if it's actually worth having vstoxx and chasing some kind of recovery or rather than

write out sri lanka's debt. consensus is agreed on the bond. sri lanka then needs to go and say, this is off-line to restructure on the basis of this plan we are seeking a loan from the imf. that's when bailout talks would start with the imf. eventually, money would be the first century long code will hopefully start getting back. haslinda: that was bloomberg's managing editor jeanette rodriguez. still to come, we talked to india's largest asset manager about his outlook for the local debt market in the rbi hiking timeline. that's just ahead. this is bloomberg. ♪

haslinda: live pictures out of mobile. seven or eight minutes to the trading day starts in mumbai. we have the nifty futures pointing to a higher open up by 3/10 of 1%. much in line with the rest of the region. stocks there have been under a lot of pressure, and our inflation. the government according to some reports suggesting it may cut lic's evaluation.

they will keep track of that. there would be greater clarity on that later. looking ahead to a key story. yvonne: you mentioned about the daybook, what we are looking at today in the open. reaction to those inflation numbers. a third straight month we saw inflation above for what the rbi does. it has forced them to have to hike in june. the rpi planning to hold government bond options. in indian enterprises by both raw materials is in discussion with banks about raising $2 billion in an initial public offering. we spoke with one of the cofounders justice week, a visit made file documents as early as october. india's headline inflation, 17 month highs. a lot of implications about what this means about the rbi, and

whether they have to join in on this hawkish tilt we are seeing from the central banks out there now. haslinda: exactly. let's get more on india's inflation outlook and bring in the cio fixed income and mutual fund, india's largest asset management. good to have you with us. inflation remains front and center for all central banks. the rbi seems to be quite resistant and tightening, given what the rbn did today, will that be added pressure on the rbi to move? >> good morning. the larger view, substantially i would say hawkish. i think the message here is, at least in indian contexts, lower interest rates and easing liquidity for a much longer time.

looking back it has to be pushed back. on the dynamic side, we start the inflation number and the other central-bank is what they mention. i think the pressure will be there on the rbi. and it will be much more decidedly hawkish direction. haslinda: how vulnerable is the rbi in india to tightening by the fed? >> to some extent, given the metric, i would say a synchronize policy tightening by most of the developed markets are on the indian financial markets. but i would say shift to the bond market, even the overall offshore investments are low at this point.

in terms of outflows. directionally, some of these measures are very, very relevant for the markets. i do support the view that this synchronize policy rate tightening, we know it's coming from indian markets. yvonne: this shift we are seeing from the rbi on tackling inflation overgrowth now, how is that going to play out in the bond market? we've only see 10 year yields in india received three year highs. as the path of these resistance for yield to go higher? >> the first impact i would say would be in terms of the expected proposed of the markets looking forward from the rbi, especially from the government bond issuance. we have a very demanding bond

and they are issued financially, and the markets are clearly expecting rbi intervention for the open market operation. given the shifting dynamics, the idea is that going forward, there would be an accommodation, and grinding of the liquidity surplus. i think the expectation of rbi support for the market, i guess then needs to be dialed back significantly. the direct impact of that would be in terms of higher markets in the bond options that reach the markets. that's one option last week, we brought one and we will have to see how the markets are. most importantly is the idea to

the higher liquidity's question -- liquidity's. yvonne: what part of the yield curve is most attractive to you? >> looking at the lower end, we want to stay much lower, given the evolving changes we are seeing. the one-year part of the curve is where there is protection. it is reasonably good. the curve continues to remain steep. i believe given the guidance we have had so far, the steepness will continue for some more time. i think we expect the tightening of the demands of the and balance in terms of government dogs. -- government points.

maybe one to 18 months, not be on that. haslinda: india is an oil importer, back above 100 bucks a barrel. how concerned are you about that, and, at what stage will it impact growth projections? >> i think a good thing now is the expectations of inflation. they will probably see it in terms of this. the india has higher commodity prices. and we import more. i would say that the first impact is on the inflation because we could potentially see those numbers move up, especially if they are much higher. even on growth there would be an impact. we have already seen the central bank mark down its growth

expectations by 60 basis points. that's very similar to what we have. we do expect the overall expected growth to come down much, with the evolving dynamic. it's very clear on how inflation behaves. on the growth side, i think the domestic recovery has the feeling. so we are not that concerned from the growth estimate with how inflation behaves, especially the geopolitical issues. yvonne: rbi rest -- haslinda: rbi risks behind the curve. that you so much for that. let's do a check on indian markets, just opened joining the trading day. seeing gains across the boards. gains when it comes to energy

related shares on the back of oil, getting that up to -- getting back up to 100 bucks a barrel. nifty bank futures also up by as much. so, india joining the rally in asia. yvonne: i think this is a sense of relief that perhaps we have reached peak inflation, perhaps we have reached peak pricing and the tightening from central banks. therefore, stocks are catching a bit of a bid here as well. coming up next, a look at the changes the manufacturer is making to its product line with email consumers. our exclusive interview with the chairperson, next. this is bloomberg. ♪

yvonne: the world's biggest bicycle maker giant manufacturer producing a model for women, designed by women that contributes 9% of sales. you kind of know how it is catered to women. i spoke to the founder of live, as well as the chairperson about how she wants to change the perception of women in cycling. take a listen. >> it's a business of man.

but bicycle is faced a business of men based on men's measurement and men's usage. they control things is based on the size of the men's hand, not women's hand. it took me more than six years to preach to my vendor. so they come up with the smaller lever for the small hand. so it is extremely important that women are half of the population. we are entitled to have an industry or progress that is based on our needs, our

measurement, and our taste. because life is based on men's taste. >> for a woman is just like you buy smaller things. >> yes, that's why we always call it -- before it is shrink it. put some flowers on it. so women, this is your bike, no, this is not new. it is designed totally based on women. and we designed by women for women. >> when you think some of the challenge of being a female chairperson in taiwan or maybe just globally? >> i think most of the people thinks that you are nothing,

you're just a decoration, flower based. yvonne: in terms of female leaders in taiwan, it's quite a small fraction that we see ceos torture people that are women. what do you think needs to be overcomes in order to see more women in leadership in taiwan? >> i always told all the girls i know that be confident, that you are always overqualified for the job you've been offered. so you just keep on working and asked for fair, equal opportunity. we just need a place to prove ourselves. yvonne: do you have any kind of

targets on sales? is 9% of your sales, would you like to see a higher, and how high? >> i always aim high, and i think because the woman is half of the population, we should be at least half of our sales revenue. so i don't know when that will come true, but i would say go, keep on going, keep on fighting. yvonne: that was the giant manufacturing chairperson. taking a look at how hong kong is looking. carrie lam the chief executive is speaking about the latest measures. they are saying hong kong will not resume that force government isolation. they have no immediate plan right now to relax the roubaix's

flight halts. so it seems to be some signs that they are easing restrictions when it comes to maybe the quarantine, the isolation roles. this is a wine regarding the ones that were bringing in positive cases. those flights halt. that may be still in the cards. the latest coming through from the chief executive. haslinda: i have to put in perspective, carrie lam under pressure to ease restrictions that have been a fight from talent to hong kong to the licensing of war. they will reopen the gyms, beauty salons by april 21. that would indeed be good news for all the folks where you are or where you are based. yvonne: there is a lot of optimism on that. that's around the same time classes are set to resume.

so you are seeing signs of reopening in hong kong, and you are seeing that with the rise of the stock prices. take a look at the hang seng reopening stocks. they've actually outperformed the broader hang seng, 9% year-to-date gains. so some of these consumer names and some of the restaurant names. so there is still the optimism out there that perhaps things are being tweaked when it comes to covid zero. haslinda: all right, for now, let's do a quick check of the latest business flash headlines. then core shareholders are being urged to vote in the climate progress reports at estimating later this month. in a report seen by bloomberg, the advisor said there's a life of oversight and insufficient clarity on how they may have support for the process, unlike any of its peers. they are not planning to stop mining until 2020. -- 2023.

they missed their first payment on a dollar bond since it's worried about its financial health emerging. sources tell us bondholders haven't received payments for a coupon initially due monday. according to the bond, they have a 40 day grace time to make the payment to avoid triggering a default. yvonne: before we go, let's take a look at markets, it seems like a sigh of relief a little bit when it comes to where inflation is to wear this pace of tightening is. as it's already been reflected in the markets? we see that that's being pulled back, that's why yields are talked about in new zealand despite the 50 basis point hike. we are surprised most economist out there, and the kiwi is actually lower. that's bike that we saw basically evaporating and yields are looking like this and treasury. 273. quite a tumble that we've seen, basically stabilized here. but that core inflation gauge

missing the mark there. it seems like there signs of march, maybe we reach the top when it comes to inflation. it certainly continuing debate as we count down to ecb, bank of canada all happening in the next few days as well. this is bloomberg. ♪

>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. announcer: the following is a paid presentation brought to you direct collective tv, llc. >> the $10 indian head gold eagle containing nearly half of an ounce of pure gold, is one of only two coins that the legendary sculptor augustus saint-gaudens was responsible for designing. the inception of this stunning coin began with president theodore roosevelt's famous letter to secretary of treasury shaw on december 27, 1904.