haidi: very good morning. we are counting down to asia's major market opens. shery: welcome to daybreak asia. asian stocks set for a steady start as investors rethink aggressive fade -- fed hike bets and turn their focus to china. the pboc could cut its key policy interest rate on friday and lower the rrr within days. jamie dimon sees disruptions

from russia's war. the invasion weighs on jp erg and earnings. u.s. futures muted at the open after the s&p 500 rose for the first time in four sessions. tech leading the advance. u.s. treasury yields under pressure today which was really interesting to see, given that we have producer price inflation rising by the most on record. the dollar index also seeing its worst day since march. wti gaining ground. this as the iea came out and lowered its expectations for global demand, given the lockdowns in china. haidi: take a look at how we are seeing the rbnz decision reverberate across these other assets as well. other central banks being put on notice as to the aggressiveness that they might need to move to get the front foot on global inflation.

we saw that massive 50 basis point hike to 1.5%, the biggest rate rise in 22 years. he talked about the bank of canada earlier as well. a lot of these commodities -- benefits and inflationary impact being felt as well. we are seeing a little bit of upside. a muted start. a quarter of 1%. the 10 year yield holding pretty steady. kiwi stocks up by 2/10 of 1%. we are watching the pricing dynamic when it comes to the aussie and kiwi. the aussie dollar trading at the highest since 2020. with that big 50 basis point move, traders are winding back their future expectations of what more and how fast the rbnz will move from here. dollar-yen creeping up there.

125. still not over 20 -- 126 that we've been seeing more movement in that pair then we have since the intervention from the finance ministry. investors bracing for a busy day ahead for asian central banks. any easing from the pboc may --. so much of the hopefulness of the rebound has been backed up on expectations of broad-based easing from the pboc. we haven't gotten a yet but we are getting more cheeses, signaling that they will move when they feel the time is right. >> hi heidi. that's right. china cabinet says that the central bank would cut the amount of money banks have in reserve. it's a further sign of additional monetary stimulus from china to support the economy.

we know that the government is worried. they've come out and said they are worried about the slow down because of these lockdowns that we are seeing come of the lockdowns we are seeing in china , and that they want to support growth. yeah, that will be the focus for the markets. investors are also looking for perhaps another cut in the one your policy interest rate. we have one in january. there's talks that we could have one this week. there's more easing. the market is looking for more potential easing in china to support the economic growth. shery: to economies going in a completely different direction. the bank of korea and the monetary authority of singapore. >> gap. there is some divergence there. we have that bank of korea decision coming out today. it looks a little bit uncertain in terms of what's going to happen. we saw the central bank lifting

rates by 50 basis points. we are seeing some divergence. overall, the inflation picture is a major issue for all the central banks in asia as well as the federal reserve. shery: i will let you go now. we are getting breaking news. this is the private deal for unity. we are hearing that unity is backing that aussie five dollar per share cash takeover bid to take that group private. unity is recommending the offer at five dollars per share in cash. the consortium is being led by hr morrison and co.. that was 2.5 billion u.s. dollars to take unity group private. we heard that the adelaide based

resident board was expected to announce a deal as soon potentially this week. we are hearing that unity is backing that offer at five dollars australian per share for the takeover to take it private. the consortium did improve its offer to that amount from 4.50 that was tabled in march. they've been an exclusive negotiations since then. if that deal comes through, it would mark the second largest transaction targeting and strong and co. so far this year. the biggest one was blackstone, 9 billion aussie dollar acquisitions. shery: another company that we are following, j.p. morgan. first quarter results marred by a loss tied to the market fallout from russians -- russia's invasion of ukraine. what jamie dimon said about the war. >> that's another huge cloud on the horizon. we are prepared. we understand.

i hope those things all disappear and go away. i just wouldn't that on that. shery: let's cross to sally. what do you make of all of these concerns? sally: jamie dimon has put his money where his mouth is. they put aside 902 million as a reserve. they did that because they cited higher inflation and the war in ukraine. it indicates the probability of a recession in their mind has gone from low to less low as the chief financial officer said. haidi: what do we make of the fact that we are seeing the big banks really trail the moves that we are seeing an equity markets? it is not something you would think is intuitive, given that we are on the brink of a

tightening interest rate campaign. sally: we saw j.p. morgan today, reporting a decline in investment banking. a decline in traveling -- trading revenue. not as bad as some analysts expected. we can anticipate that the other big banks that report tomorrow may experience something similar. russia will be very high on the agenda. the city is the bank with most exposure in the country. it has something like 10 billion of exposure. analysts will be watching for that. i think the volatility in march helps banks offset the poorer trading. on the flipside, it impacted some of the deals in the market which aid into their investment banking revenue. it has been quite a messy, murky picture for a lot of the banks

for that definitely was the reality today with j.p. morgan. shery: let's get you to vonnie quinn with the first word headlines. vonnie: the united states is sending ukraine $800 million worth of new military hardware. president biden announced this on wednesday after a phone call with president zelenskyy. it includes heavy artillery systems. it signals a more intense military commitment after most -- previous assistance was mostly defensive weapons. tuesday's shooting attestation that injured more than two dozen people. he faces a federal terrorism charge and could face up to life in prison if convicted. u.s. cap the dramatic manhunt that stretch 30 hours. jerzy has frozen more than $7 billion of assets linked to --.

that's equivalent to half of his wealth. they rated -- sanctioned by the eu and u.k. last month. representatives didn't immediately respond to request for comment. finland has started a process expected to lead russia's neighbor into nato. the bid to join the organization could be decided in the coming weeks after the release of a white paper that sayed -- cited security guaranteeing's -- guarantees. sweden failed to follow suit. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. haidi: tsmc set to return earnings later after posting record revenue earlier this month. we discuss what to expect. the latest u.s. inflation data

shows signs that pricing pressures may be peaking. we break that down for the markets. this is bloomberg. ♪

>> we will try to reach a strong labor market by bringing inflation down. it has been done in the past. it's not an impossible combination. but it will require skill and hard work. that's what they will try to accomplish. shery: our next guest says inflation is probably peaking now but remains cautious and patient on the market. we discuss with michael vogelzang. it was interesting to see the market reaction today. producer inflation jumping. what data pointer investors watching? michael: yeah. many of them. it depends on day-to-day, hour to hour.

that's the real challenge. it's a difficult problem with inflation today because we have two ways of inflation. the first being from covid and the reopening of the economy. when everything stopped, we had stimulus around the globe and logistical issues causing huge demand with no supply. the covid inflation. we believe that is slowing down. in the u.s., you are seeing used cars begin to rollover after massive inflation in used-car pricing. other things like that. the problem is you have the second wave which is driven by the ukraine more, energy, employment, and housing. those are more sticky. they are embedded into the economy and it will take longer for those to work themselves out. that's what the fed is trying to manage. haidi: is that why the market is being more pessimistic these days? whether it's the economic trajectory in the u.s. -- how do you position? michael: yeah.

there's almost no end to the list of negatives, horrible's that we are looking at. they go on and on. whether it's inflation, valuation, a war on top of that. you have an election coming up in a few months, midterm elections. there's plenty to be worried about. the real challenge is, how is the market digesting this? we are still being cautious. we think there's a lot more that could go wrong then can go right. we will see. haidi: i want to get your view on what's going on with financials, give seen across treasuries and the yield curve. this is a chart taking a look at u.s. banks lagging despite the rising yield environment. is it a misunderstanding that we should expect to see banks being correlated to a rising rate

environment? is it counterintuitive that we are not seeing that boost? michael: no. it's an interesting dynamic. when interest rates were zero, all banks wanted was a little bit of net interest margin. longer rates higher than shorter rates so they could deposit at higher rates. when we saw the first lift off of interest rates, you saw a nice correlation between higher interest rates and bank prices, financials in general. that has been broken. the fact of the matter is, now it's not an issue of higher rates giving the banks breathing room. this is now and inflationary problem. the fed is beginning to slow the economy down. we think the economy is already slowing down. the fed is going to double down audit and ratchet up interest rate increases. that will cause a problem in the economy. that's what you are seeing. not just net margin expansion.

today, the actual slowdown in the economy beginning to break the correlation. haidi: the other interesting dynamic is what we've had in tech stocks. for a long time, they were pretty resilient. we are starting to see a gap, when you take a look at the likes of the nasdaq 100. are we going to see a doubling down as investors tighten? michael: there's a bunch of dynamics at play there. the first thing to do is to step back even further. if you go back five or 10 years, you can see that super large mega cap companies with growth biases, we are talking about apple, microsoft, it satoru -- etc., those dominated the market. the average stock in the index underperform the broader index for a long time.

the problem with active investment managers. what we are seeing is an unwind. the rest of the market, not the super mega cap growth stocks, the rest of the market is relatively cheap. as interest rates start to rise, though stocks with lower value and higher dividends suddenly become much more attractive than those with a 30 price-to-earnings ratio for example. you sign a lick -- finally see the market rotate away. that doesn't mean that the others are having lousy businesses. it is the market bringing those prices down. i could continue for a while. haidi: great to have you with us. michael vogelzang. we do have a guest coming up later, sri lanka's new finance minister as the country looks to avert an economic crisis. what a timely occasion for him to join us. reforms could be presented to

the imf. what could be presented as sri lanka tries to negotiate a bailout program? coming up next, a $40 billion investment into electric vehicles over the next 10 years. this is bloomberg. ♪

shery: we are counting down to the start of trade in tokyo and seoul. economists split on a potential 25 basis point hike. south korea's import prices were up for a third straight month in march, not surprising. we continue to see very high energy and food prices. the transport ministry saying that carmakers will voluntarily

recall more than 54,000 vehicles over defective parks -- parts. the yen slumped to a two decade low against the dollar on wednesday as markets took the few that are further divergence is inevitable. the executive vice president of toyota saying that there's enough demand for carmakers to sell almost 17 million vehicles in the u.s. this year. supply chain issues will see the target cut by one million. honda is investing $40 billion to produce 2 million electric vehicles over the next 10 years as it looks to be carbon neutral by 2050. haidi: yeah. let's get more on hondas big bet. the ceo told bloomberg exclusively that the text -- next 10 years will be crucial. >> we announced our goal to achieve complete carbon neutrality by 2050 just a year

ago. we set up step-by-step targets for the years 2040, 20 35, and 2030 respectively. as part of those plans, we aimed to produce more than 2 million electric vehicles a year by 2030. it's a crucial target that we need to clear in order to achieve our ultimate goal of complete carbon neutrality by 2050. i believe it's a necessary investment to accomplish our objectives. >> you've spoken about the importance of making the easing business profitable in order to survive a lot of the changes within the auto industry these days. how do you see your partnership with gm in this area helping honda with that goal? >> electrification isn't an easy task. we can't picture our future of electrification on our own. together with gm, we are able to produce very attractive vehicles by using each of our

technologies. most important, when honda mgm come together in the global arena, we can develop our businesses effectively and it's also very cost-efficient. the electric vehicles we are jointly developing can be produced either factories. this style will eventually be very beneficial for our ev businesses and we can be very competitive in the global market. >> it was recently announced that honda and gm going to be working to jointly develop more affordable electric vehicles. recently, we've had a lot of movements in the price of raw materials such as nickel. do you see this movement and material prices impacting your business with gm going forward? >> we see the increase in material prices as very problematic. especially price hikes in nickel, cobalt, and manganese.

that directly pushes up the price of ev batteries. we are making efforts to reduce the usage of cobalt in our batteries. for instance, the price of nickel has surged sixfold in the past year and it's hard to absorb all the costs. no matter whatever we make. it's not just an issue for honda. we could possibly handle the situation as a group. to be honest, it is still a big issue which we don't have a clear solution for. >> the big news was hondas tie up with sony to create electric vehicles. how do you see hondas technology coming together to create a competitive electric vehicle in the increasingly competitive market? >> sony and honda are in totally different businesses. by crossbreeding each of our

technologies, we believe we can see a chemical reaction. not edition but multiple place in. we expect our value can be multiplied. honda can't exceed honda by itself. it will be a huge benefit for us especially in the area of electrification of our vehicles. it's a very challenging task but i myself am involved in the process and very hopeful that this joint venture will create new value for our business in the next generation. >> in your latest perspective, how do you see this ship shortage beginning to ease? >> we've been told that the chip shortage would ease soon. it never did. we are still impacted by chip shortages. we expect the shortage to continue at least during the first half of this year and we expect it may last even longer. the chips that automakers use account for only 5% of all chips but our businesses get impacted

by other industries as well. we do have countermeasures from short to long-term but we can only do what we can do. shery: plenty more ahead.

vonnie: this is daybreak: asia. new york city law enforcement officials have arrested frank james. he faces a federal terrorism charge and up to life in prison. it caps a dramatic manhunt. a fed governor says the u.s. economy can handle tightening and supports raising rates by a

half-point next month. he told cnbc he prefers to upload future rate hikes. according to the latest estimates, the neutral rate lies around 2.4%. janet yellen has called beijing and criticize china for practices that unfairly damage the national security interests of others. >> they will be effective by chinese reaction. 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 am vonnie quinn. haidi: big day ahead on the

monetary policy from. this coming is china's central bank is set to further diverge. let's bring in our senior asia economy editor and kathleen hays. michelle, we have seen this teaser and markets have been banking on broad-based easing for quite some time. does it seem like we're going to get that? >> i think you have as big a hint as you are going to get from china, we have seen before that when the state council issues the sort of statement they did yesterday there is a few days to act, they said they were willing to use monetary policy tools at an appropriate time, so we can expect them to

move and we have been expecting that to happen for some time. inflation pressures are on the rise. shery: how much would monetary easing health? -- help? michelle: china is always a bit of a black box if you talk to any economist, where the growth path goes from here, i think this is the best bet and judging from recent history, they will do some easing, but who knows from here, there is a lot of pressure china is impacted by and does impact. we will have to see what happening in shanghai and throughout the country as well as the supply chains being affected by the covid rise. shery: given the supply chain, we are talking about easing,

when it comes to korea is the other way around. kathleen: let's look at korea, because they are in an interesting position. economists are evenly split 11-21 for no hike or no basepoint to 1.5%. why would a pause? they have a new governor nominated, not confirmed yet. they're going to wait and see who it is before they make a move and signal more aggressiveness down the road. it is true that inflation is well above target, near 10 year highs. the cpi at 4.1%. the target is 2%.

why not rein it in? one more problem. the new government wants to spend a lot of money to boost the economy when they have an inflation rate that has to come down. this coordination is going to be a tricky issue as well, another reason why people are betting that it's best to sit tight and not lose too much, maybe they will give us a bit of a surprise. haidi: the cool kids are in the 50 point hike, right? this is very aggressive. kathleen: it doesn't seem as aggressive now. look at the reserve bank of new zealand. they have been ahead of the pack even since the first rate cuts, 50 basis point hike yesterday, then the bank of canada and the u.s., the 50 basis point hike for the boc was expected, they

are up to 1% now. expected to go to 3% by next year. also an inflation problem. almost at 6%. 5.7%. the target is 2%. they had to increase their inflation outlook. 6% in the second half before going back to 2%. you have some aggressive forms, queued up for a couple of weeks. we will see guelph follow suit. for now, the ecb is expected to raise their rates. the bank of turkey to hold steady as well. central banks are going for it. shery: kathleen hays with michelle and the rest of the asian economy action. coming up next, tsmc announcing earnings with analysts expecting a record quarterly profit.

we will discuss the outlook, next. this is bloomberg. ♪

shery: tracking the supply chain crunch. toyota warning car buyers may not see relief from sticker shock for a while, a shortage of parts will keep inventories short.

orange juice prices continue to surge with climbing costs for florida. the latest florida frost is the smallest and's 1943. 30 taiwanese companies have halted production in china to comply with covid related restrictions. it follows the lead of other apple suppliers. haidi: terminal users can read more about those stories. tsmc is expected to post a record quarterly profits. joining us now is the head of taiwan equity research at credit suisse. let me throw up what i said about expectations from tsmc,

the operating environment and analysts have been bullish on the stock? the company raising its sales forecast, of course on the back of chip and processor demand stories that continues as the world comes out of the pandemic. why are you reducing the price target? reporter: i want to say, i think they will come out positive on their business. they are outgrowing the industry. they have had good pricing and exposure to data, that area is strong. local currency has depreciated, that will give them an incremental boost.

the target price, we did that across groups. rates will continue to rise as central banks try to continue to control inflation, that does affect valuation. the second doctor -- factor, relative to two months ago, areas of concern and uncertainty which requires lower valuation. haidi: talk to me about the expectation about consumer tech demand. we know in the past, and economic slowdown condition, we have not seen an impact on demand for apple iphones, for example. guest: there are a few pockets to be new wrist about. we can see the conflict in europe, covid lockdowns in china

, and all of these bottlenecks and supply chains have led to inventory buildup. coming out of the pandemic, some parts did quite well, decelerating. if you look at china, the android smartphones. those other headwinds. when we look at the demand sector, there are still questions, but when we look at the consumer side dealing with inflationary pressures, it is a bit of a softer outlook than a few months ago. shery: given the macro environment, what sort of inventory strategy are you hoping to see from not only tsmc

but other semiconductor makers. guest: i will say, we are still positive overall, there are product cycles. i would say a soft landing is the best scenario we can get, technically we could avoid a recession and bring down some inflationary pressure. i think the other couple issues are out of the industry's control. we get to a more stable situation in europe and with china and the covid containment, city lockdowns. it's a combination, if europe and china can improve demand outlook, and as bottlenecks ease

and we see inflation come down, that puts less pressure on rates to rise. shery: what are your top stocks fix -- makes across asia? guest: stocks are down 40%. from a longer-term investment, could control for supply. we also like companies tied to data networking. sometimes there is a high beta, you get a lot of buildup of inventory, memory has been stable. the last couple of quarters saw inventory adjustments and should make for a more mild slowdown.

haidi: from a bigger picture perspective, when do you expect to see the center of gravity when it comes to the industry to shift from asia to other parts of the world. we see the u.s. beefing up investments, china is a completely different story. guest: the balance picture has been concentrated. what intel is doing, if you add to tsmc, samsung, you have seen something like ti restart and get aggressive with extension. the investment continues. tsmc will still buildup in japan. that would be more of the approach.

in terms of a shift of percentage, it will not shift a lot, but in terms of stemming the decline, looks like we're in a stable situation. shery: always good talking to you from credit suisse. let's get a quick check of the headlines. the japanese carmaker aims to introduce 30 eeev models and booze production by 2030 as part of efforts to achieve carbon neutrality. >> we have stepped up targets. as part of those plans, we aim to produce more than 2 million electric vehicles a year by 2030. it's a crucial target we need to

clear in order to achieve our ultimate goal of complete carbon neutrality by 2050. shery: slower demand for software and i.t. services as companies exit work from home arrangements. india's number two i.t. outsourcer forecast revenue in the fiscal year ending march 2023 to increase up to 15%, missing estimates of 17%. profits trail estimates. shares of delta airlines rose 6% before paring gains. delta posted a loss of $940 million in the fourth quarter however, delta says it is seeing record sales heading into the

spring and expect to be profitable for the remaining quarters. we have plenty more ahead on daybreak asia. this is bloomberg. ♪ \

shery: take a look at how the yen is trading, a little bit of strength against the u.s. dollar, this of course after

touching the 20 year low. levels we have not seen since 2002 around 126.32. that's the level we saw after the governor came out and said he would double down on monetary easing. when it comes to the aussie yen trading like this with the aussie weakening slightly against the u.s. dollar, against the japanese yen, we have seen the aussie propelled by commodities prices, that has been the big focus. the euro and japanese yen holding at the 136 level. haidi: moves being fueled by mixed signals from policymakers in tokyo, as well as big moves from central banks expecting a move from the pboc. let's take a look at all of this. david has more. we have seen a bit more impetus

when it comes to dollar-yen. what is the next catalyst? david: the key has always been powerful easing. the markets are pricing in charts for a 50 point hike in may. looking at inflation data coming out ahead of the decision. that should push the antenna up higher and drive the dollar yen with it. shery: the u.s. dollar itself, we saw weakness giving yields were down, of course the euro plays a big part. david: if you look at the bloomberg dollar index, 32

percent of the index. vladimir putin said he was not to end the war in you learn -- ukraine. at the moment, if they sound a bit patient when it comes to monetary policy, that will affect dollar strength. haidi: the latest on the currency moves. shery: watching the monetary policy of singapore to counter rising food and fuel costs. this as inflation reaches a nine-year high. our chief national correspondent joins us now.

what are we expecting? haslinda: we are expecting a further tightening yet again. 2.5% to 3.5% and they say they are ready. analysts expect three things. it can widen the band. if it does, it's a rare move. if it does raise and expand the band, there are huge concerns

about volatility. all of these moves to counter higher commodity prices. remember, singapore imports everything it needs from fuel and food to added cost to the people. haidi: we are getting first quarter gdp. what are we expecting? reporter: a slight slowdown. gdp expansion. bear in mind, things will remain , the momentum for growth is continuing. expectations are for the rest of the year growth will continue. this is a city -- bloomberg

economics expects it to be at the higher end coming in at 4.9%. things are looking up for the lion city. haidi: haslinda amin. you can tune into bloomberg for more on the first quarter gdp prints. get that from the bloomberg commentary and analysis from our team of expert editors. coming up in the next hour, speaking to goldman sachs ahead of the bank of korea decision, expected to raise rates what economists are split. we will be getting views on the singapore rate decision as first quarter gdp crosses the

bloomberg in a few minutes time. we have the market opens next ahead of the easter long weekend holiday, seeing a pretty robust when it comes to the start of trading in asia. this is bloomberg. ♪

shery: welcome to daybreak asia. haidi: asia's major markets have just open for trade, stock to set -- the previous he could cut interest rates on friday and lower the rrr within days. plus, the south korea central bank needs without a government.

investors are waiting other policy decisions. first, we have first quarter gdp numbers coming out for singapore. seeing steady momentum. first-order gdp growing, missing expectations of 3.8%, missing that best when you break it down, manufacturing contracted quarter over quarter. construction grew 3%. when it comes to the difficulties facing the economy, we see this example of the open economy of singapore facing the challenges of soaring inflation when it comes to the pandemic recovery. shery: we are seeing tmonetary e

breaking news, they have resent to the currency been and has raise the slope slightly. they have not moved on the width of the currency been, they have not moved since a few years back, only twice after 9/11 and the financial crisis, but they have gone ahead and re-centered to the prevailing level. this would allow the singapore dollar to appreciate faster. core inflation forecast her slightly higher level than average which is why and you can see that reaction at the end of that chart on the right.

let's look at the broader market japan and south korea coming online. nikkei up for tenths of 1%. japanese yen strengthening against the dollar, around 125. we have seen significant weakness, but out the moment, we are seeing stocks leading gains in japan, watching the 10 year jgb yields closely, we have seen that appreciation committing to easing that yield .235%. the korean won a strengthening for a second consecutive

session, we have seen the finance minister come out and talk up the korean won. we are headed toward the split and where it could go. haidi: such a busy day for central banks. busy week, processing the biggest rate headache we have seen from the new england -- new zealand bank in 22 years. take a look at equities. we are expecting above 3%, we are seeing moves when it comes to aussie sovereign bonds alongside moves we have seen following the rbn decision. new zealand equities trading, let's call it flat at the moment, and the kiwi dollar with a little bit of further upside,

we had expectations potentially further aggressive tightening moves, they have been pulled back somewhat there. we are seeing a little bit of weakening, taking a look at the picture when it comes to commodities, so much of this picture has been informed by the inflation outlook, particularly for economies like singapore. taking a look at analyst reaction, we saw this key line from the statement. tightening policy, re-centering of the midpoint at the prevailing level and also

increasing the policy been to continue dampening the effect of them nation. we see this all about inflation, right? guest: we had to raise -- this is a more aggressive move given the last two were up the slope, combined with re-centering higher, [indiscernible]

haidi: we are seeing falling after the decision, about the -- the fault line by the end of march. do they have more buffer and space to do that, despite the war in ukraine, we have not been seeing much volatility when it comes to the currency side. guest: [indiscernible]

it comes as no big surprise. shery: we have some adjustments in public transport, not to mention manpower. guest: [indiscernible]

shery: how much of your forecast depends on what happens in china as well? guest: we are taking a careful look at china because lockdowns are affecting activities. they want to target corporate strategy. the contagiousness of the omicron virus.

manufacturing is disconcerting, we have to see whether it corrects itself. shery: inflation forecasts are expected to pick up sharply in the coming months, the all item inflation forecast rising, fresh shocks for the supply picture, they are saying core inflation brings it to a significantly higher level than the historic average. take a look at the language from the bank of canada, is there a sense this is another central bank that realizes price

pressure is starting to get away from them? guest: it came back -- it's not a surprise. it's about time core inflation gets upgraded. [indiscernible] it might be something like we saw last year i think that's going to be the story for a lot of central banks. shery: it was really good talking to you. let's get to vonnie quinn. vonnie: thank you.

the united states is setting ukraine $800 million worth of military hardware. president biden announced it. it signals a more intense -- janet yellen has called beijing and criticize practices that unfairly downloads the national security interests of others and warned beijing to help and russia's warring ukraine or face the loss of standing in the world. >> china will be affected by chinese reaction vonnie: law enforcement officials arrested frank james admin happen after a

shooting at a brooklyn subway station that injured two dozen people. earlier s&p lowered to its third lowest level. the decisions come amid widespread political and social unrest. 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 am vonnie quinn. this is bloomberg. haidi: we're discussing the latest on debt troubles and why beijing is bailing out the

struggling nation. most economists are expecting the mlf to be slashed as soon as friday. we will get more on that next. this is bloomberg. ♪

shery: i waiting numbers of covid cases and shanghai. yesterday's number, we are watching for virus restrictions to be eased across china. china may be allowing some cities to shorten quarantine, but we are expecting to see i'm watching for those numbers at any moment. this has rippled throughout the chinese economy. the central bank is expected to cut interest rates for the second time this year, and we start with the requirement ratio

within days, the economy strained under covid lockdowns. let's bring in kathleen hays. how strong a signal is this? kathleen: we know that frequently everyone listens because they could move pretty soon. china's cabinet had a meeting that wrapped up, they came out with a statement about using appropriate tools including the rrr rate, which is placed on rates, that they could use those at the appropriate time, and it does seem to be the appropriate time. lockdowns, what it means for supply chain. what it means, that is more and more doubtful all of the time.

two thirds see a 10 basis point decline in that turquoise line, nevertheless, property developers and others. in terms of the rrr rate, not quite as effective as it used to be, the idea you could happen within a few days. again, china is the outlier. they are moving rates lower. this in contrast to the bank of korea expected in the next hour, the fed, ecb, you name it. this is what they have to do.

it does raise some questions about currency, bond yields, and for now their economy is under pressure, it has some challenges. they are a lot lately, let's see if they give us some action. haidi: kathleen hays. the longwood gated -- long-awaited action. given that expectation has been so elongated for broad-based easing, could this be a situation where we see a selloff on the fact? guest: that is the trillion dollar question. china's market has been quite volatile. way before the policy measures came through. remember, a month ago, they were going to stabilize markets. investors kept waiting for

something concrete to come through, and we finally have it. but we did not know a month ago is covid was going to be such a big deal. so many factors have cloud of the outlook for these positive policy claims. shery: what about the regulatory crackdown? we continue to see positive hints with gaming licenses being approved at some other rhetoric that perhaps there could be a let up on that front. guest: absolutely. it's interesting because a month ago, the tech crackdown, the thought was the original view was now that investors are examining this, they were further tailwind.

shery: here is a big guest for later. we're asking what reforms are presented. this is bloomberg. ♪

shery: we are getting the shanghai covid cases for april 13, 27,719 local cases. this is another record, below

that 30,000 level as we continue to hear from the president that his government will stick to zero-tolerance, that we have heard from sources there will be easing for overseas travelers, but that has not happened yet. shery: j.p. morgan has posted a loss due to exposure to russia. jamie dimon spoke about the challenges ahead. >> that's another huge cloud on the horizon. i hope those things all disappear and go away. i wouldn't bet it. shery: j.p. morgan reported blowout bond trading's on banking revenue. let's take a deeper dive with su keenan.

what is this telling us about the bank and the broader economy? su: he sees risks rising for recession, they did set aside or lose a half $1 billion due to ukraine and russia, and they got caught in the nickel short squeeze. taking a lot of attention away from trading results witchcraft estimates by $1 billion. there was a lot of volatility, that resulted in a lot of trading. due to high inflation, the supply chain, the war in ukraine. the stock was down but then up

after hours. haidi: we have four major banks next. what are we expecting? su: expecting the same themes. there could be some missed estimates. goldman for instance, one of the biggest investment banking, the focus is on potential losses. thanks have largely underperformed this year, we can see they have lagged even though there has been rising yields.

haidi: su keenan the latest. coming up, we take a look at the latest debt concerns for sri lanka and pakistan.

guest: it shows how long the road back will be. it's interesting in those remarks, the downgrade, one of

the reasons is it shows how complicated the negotiating process will be. there isn't going to be a quick fix. also interestingly, the government of sri lanka has been pushing -- that the backdrop, they are heading to the imf, of course they are already starting the default process. shery: same thing with pakistan we are seeing political upheaval.

guest: the talking point is china will have a big say in financing giving china has evolved both in terms of funding and projects through the belt and road and other trade initiatives. for the moment, it certainly isn't explicitly signaling any kind of bailout, our colleagues in beijing today roundup, no sense of urgency on the chinese side. on the flipside, the social unrest by addressing the chronic issues there. both china and the imf, on to get through that political

stability period, it will be interesting what china brings to the table. shery: our chief asia economics correspondent. we have a big get later. we're asking what reforms could be presented to the imf. vonnie: the singapore central bank has tightened monetary policy. it's the first time since 2020

and expected to be the reserve requirement ratio after china's cabinet said the pboc cup would come at an appropriate time. the previous cuts came days after similar statements. the fed governor says the u.s. economy can handle aggressive policy tightening and is raising by half-point last month. the aim is getting the key rate above neutral by the second half of the year. the neutral rate lies around 2.4%. finland has started the process into nato in response to the attack on ukraine. the prime minister says a bid to join the organization could be decided in the coming weeks after signing a paper. local media reports sweden may

follow suit. 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 am vonnie quinn. this is bloomberg. shery: we have more earnings coming up. tsmc expected to report a record quarterly profit. both get to debbie will. what will investors be watching for? reporter: [indiscernible]

haidi: what is the outlook on the demand side and the economic outlook side? reporter: the latest on the impact is more than 30 companies are halting operations in eastern china because of covid restrictions. u.s. consumers watering laptops

are seeing estimates being pushed back to june. that's making a jump given what happened in recent days. we have seen the lockdowns and we will find out a bit more. haidi: debbie wu in taipei ahead of the taiwan earnings call today. coming up, economists are divided over the bank of korea interest-rate decision. it's difficult to forecast the outcome. this is bloomberg. ♪

shery: taking a look at korean markets. the kospi under a little bit of pressure, 2/10 of 1% on the tech heavy index. the korean won strengthening against the u.s. dollar. this is after we had the finance minister saying the government will take measures to stabilize the space and then ahead of the

bank of korea rate decision where most economists are predict a 25 basis point hike to 1.5%. we're talking 11 of 21 economist surveyed by bloomberg. our next guest expects a move in may. it's great to have you miss -- with us. tell us about your rationale. guest: the bank of korea was the first bank in asia to raise rates. when you look at the trend compared to the u.s. and other countries, the normalization, i think we will see more next week

when the governor nominee will testify in the congress about the policy. shery: we don't have a central bank governor at the helm when they are making this decision. does it affect policy changes and what do you expect if he is put at the helm of the be ok? guest: they made it clear they want to raise rates. it doesn't matter much, but what matters is that this requires not just the governor, but they need more data. it's very challenging, i think

they set the tone in may with the new set of data and the new governor in place. there is no urgency as far as we know based on inflation and growth for the be ok to move. haidi: certainly when it comes to the labor market which has seen impressive resilience and recovery, take a look at this chart where we are seeing the unemployment rate sit at a record low. the jobs market has always been such a huge issue economically and politically. what is the level of resiliency see in the economic recovery? guest: we expect domestic demand to pick up, assuming the

pandemic will become endemic. exports will be quite important. march exports were down for the first time since july. obviously, the box has a challenge or obligation to figure out not just inflation, and yes, i agree domestic is stronger, but at the same time, when you compared to the u.s., the ratio is much less. labor market is tightening, but not much like the u.s.. haidi: you mentioned singapore,

the small, open economy where inflation is taking hold, but perhaps shakiness with the pandemic recovery. take a look at the language being used, a 50 point basis point move. is there a sense fed this central banks are moving? that level of conviction? guest: [indiscernible] they can stay on the course. everybody has cyclical moves, the first to raise rates his first out. we are talking about inflation in the context of the global

pandemic. at the same time, because of that, there is divergence in cyclical. [indiscernible] haidi: that difference in divergence in the two largest economies. how will the other central banks play that when you have central banks around the world going in different directions, yesterday we had the boj doubling down on monetary easing commitment. guest: each country has unique domestic sectors let us far as

global sectors are concerned, energy and food inflation, and we thought in [indiscernible] our expectation is for korea, inflation will peak q3, and going down to 3% by the end of this year, it depends on how it moves. core inflation will be going down to 2% early next year. haidi: fiscal spending has been

a key pillar of support, we heard from the finance minister saying he wants to see the impetus, how easy will the transition be? guest: good question. i think the new government, given what they said, there is a better coordination or harmonization between monetary policy. previously because of the pandemic, particularly in korea, monetary policy to get to tighten. less hawkish.

shery: hold on a second, we have the bank of korea rate decision coming in at 1.5%, they raise the key rates by 25 basis points. it was a split decision. surpassing the 4% level for inflation, give us your reaction to the rate hike, they are not necessarily changing course, but not resolute in taming prices. guest: [indiscernible] our view remains inflation around 2% which is our base

case. the pace of the rate hike for the bank of korea will be much lower than rising prices. we have to see what will be the core of the statement. haidi: does this mean we are more likely to see a pause? guest: have to look at export data. also, they will have to look at high oil and high food prices.

this government will look at tightening of monetary policy, they want to look at supply measures. we will have to see what will be the main message. haidi: the asian economist at goldman sachs. can turn to bloomberg for more on the be ok -- bok decision. the bank of korea raising its key interest rates on thursday, brushing aside concerns and clearly seeing inflation risks being much more. the seven-day report repurchase

rate taking into 1.5%. this is the first ever decision without a government in play -- a governor in play. this is bloomberg. ♪

shery: here's a quick check of headlines.

slower demand of software and i.t. services as companies exit work from home arrangements. they forecast revenue to increase up to 15%, missing average estimates of 17%. profits trailed estimates at $750 million. shares of delta rose 6% before paring gains after the airline forecasted a rebound in summer travel booking. they posted a loss of $940 million fueled by higher fuel cost and slower return of business travel. delta says it is seeing record sales heading into the spring and expect to be profitable for the remaining quarter. bloomberg is being told reliance industry is looking at a bid for a pharmacy chain. they have been chasing deals in europe as they pivot towards

more consumer businesses. walgreens kicked off the sales process earlier this year. google is spending $9.5 billion to get more workers back to the office. they will invest in canvassing and data centers and is expected to create 12,000 new jobs as part of the investment. tech firms are struggling to balance freeing workers back to the office without causing unrest. haidi: these are the stories will be watching when markets open on the mainland. a pharmaceutical antigen test has been approved in china, we are watching for listing approvals. vnoov --on beijing's possible

concerns over possible sanctions. icbc is want to watch as well. still ahead on bloomberg, pine ridge investments saying we are yet to reach peak fed hawkish this. will be joined by the deutsche bank cio to talk about where china's economy is heading and we get more hence about broad-based easing. shery: will they move or will they not? our market coverage continues, we look ahead to the start of trading. standby for bloomberg markets china open. this is bloomberg. ♪

>> this is my kitchen table and it is also my filing system. over much of the past three decades i have been in investment. the highest achievement of mankind is private equity group i started hearing i watch her interviews. i learned from doing interviews how leaders make it to the top. >> i asked him how much he wanted, he said to 50. i said fine, i did not negotiate with him. >> i asked them how they got on top an