>> you are watching "daybreak: asia" coming to you live from new york, sydney and hong kong. >> we are counting down to the market open in soul. >> asia stocks are set to follow wall street higher. as immediate concerns ease. jp morgan is warning of a possible minsky moment. risky credit suisse bonds are said to be quoted near zero with pemco facing combined losses on the debt of more than a billion dollars. and president putin says he will discuss china's ukraine plan as he welcomes xi to moscow. >> we have the open of the asx 200. you can see it is moving higher. what we are focusing on is the moves into the banking sector given we saw the softer u.s. dollar in the u.s. session which helped most of the u.s. banks finish high.

in the session so far without stroll you we have anz trading higher. and the etf more than a present and the green. the focus is on how the fed will interpret the turmoil we have seen in the financial sector and whether that will lead to a pause or push to a 25 basis point hike this week. what we see in the treasury spaces we have yields ticking higher with risk coming back into the market. and we see a reversal now in the aussie yield. the key we moving lower. we are also watching what is happening with the japanese yen. still fairly steady. implied volatility off its recent highs. the advocates are saying you can look at 30,000 at the next level given that we have seen a 25% jump from the start of the crisis with svb. >> take a look at how u.s. futures are trading at the moment because we are seeing a

little flat but still supported a little bit. this is after the s&p 500 gained around today. every sector was in the green. we are following the nasdaq 100 also because it had the best week last week since november. it underperformed a little bit this -- today. had a lot of volatility in the treasury space. not surprising given we are heading to the fmoc meeting but we have a two year yield trading in the 20 basis point range. we have seen the huge volatility every single day last week. again today. attend your yield holding at 8348 level. we are seeing pressure in the asia session. in the new york we saw an upside with the dollar falling to the lowest level in months but that is not being supported and we are still around a 15 month low. we are watching banking stocks because we saw the bank gaining

ground in the new york session. i was slightly supported after a 15% route last week but first republic did not do well today again falling to a record low. another credit downgrade for the stock. after hours trading looking a little better. up .6% but has a long way to go as other regional lenders remain supported today. >> bloomberg's looking at the risky credit suisse bonds. they are being quoted at a few cents to the dollar. our reporter joins us in sydney. what is the latest on the bonds notwithstanding huge amounts of dissatisfaction? >> if you are a bondholder you are really upset. this has upended the market. it has thrown the structure out of the window that bonds should

rank higher than equity. bonds are not yet trading at zero because the deal has not closed so traders are still trying to salvage value. they are buying at about two cents on the dollar and selling at five cents. we are talking about morgan stanley and bmp doing these trades and the hope is that when the deal closes and there is some litigation, the bonds will have some value. they are trying to craft the terms so the securities turn into claims against credit suisse when the deal closes. >> bloomberg financial reporter joining us from sydney. bloomberg intelligence says the recent decision by u.s. authorities to ensure all deposits of collapsed banks could create imbalances have hurt lenders overseas. that's got more from our analyst, allison williams. what have you discovered? >> i think that stocks are

going to remain volatile. i think a lot of investors are waiting to see if we will get any more clarity or any kind of decision around the authorities providing deposit insurance. we had the two banks that failed over a week ago, insurance was provided. there has been a lot of questions around the banks. some support was provided. i think they are trying to avoid more drastic measures but i also think they want monetary policy and they do want to tighten. i think they are grappling with that decision. >> from a global perspective, if u.s. banks are seen to be more protected or their balances are more protected, does that have global ramifications for other banks? >> i think ed can. -- i think it can.

what you have seen so far in the u.s. is a flight to quality to the larger banks from some of the smaller banks. and the question arises that if the u.s. ensures -- some of the talk is that they will ensure 500,000. people have called for all deposits to be insured for a temporary period of time. as you can imagine, if suddenly u.s. deposits are fully protected how does that factor into investment decisions? keep in mind that the two banks that failed had deposit outflows . and that was a key reason why one of this --why the swiss regulators stepped in. >> we have seen this confusion and uncertainty among bond holders and the treatment by the government.

will this make a difference in how investors look at these banks? >> i think did is calling attention to the scare -- to the securities. there were two unique things with a credit suisse deal and one is they did not require a shareholder vote for ubs and the second is they wiped out the holders -- the at1 holders. the equityholders received something. they don't like that equityholders got paid. the other side of the argument is that it is expected not to be worth anything in such a transaction. one note is these are securities and especially the ones from credit suisse, you have specific

features that are not shared by a lot of the other european at'' s. >> allison williams with the latest on the banking turmoil worldwide. former new york fed president bill dudley says the best policy move this week is to pause on the interest rate hike path. kathleen hays is here. he still emphasizes that it needs to be done right. >> a delicate balancing act trying to keep unstable markets stable and confident in what the fed is going to do. he started by staying with bloomberg television earlier today that it is clear the fed will not hike 50 basis points and they won't cut interest rates either. in fact he is said in favor of the pause the idea is first, do no harm. there is a financial crisis going on and you do not want to upset things. he does say he would add a

little caveat and meanwhile he explains why he can also see the case for a 25 basis point hike. >> the case for zero is due no harm. we know the banking system is under stress. why continue to raise rates when the system is under stress. the case for 25 basis points is to say we still have an inflation problem. we can do both. use our liquidity to shore up the confidence. and use monetary policy to bring down inflation. if i was sitting there i would recommend taking a pause but we have to do it in a way that does not alarm people. >> it is all about communication explaining to the market that you are not pausing because you think there is something bad about to happen. you are doing it because you want to give markets a chance to stabilize. quantitative tightening, he says the fed should continue to do. bloomberg economics think the fed will do the right thing

following the ecb and do a 25 basis point hike to fight inflation though there is a bit of a financial crisis going on. >> the ecb president does not share that concern for the fed in terms of having to have that trade-off between fighting inflation and restoring financial market stability. >> what she says makes sense. there are two different kinds of tools. you are two different issue is purity and financial stability supports a healthy state of the economy and perhaps lower inflation at some point. and the other way around. she says they go hand in hand. she also says they are using all of their tools and she is sure they are working to make sure the ecb keeps the banking system on the right track in the eu. let's listen. >> we are very confident that the capital and liquidity positions of the euro area bank

are very satisfactory with significant capital ratio and liquidity coverage ratio way in excess of requirements. >> though the ecb took out any language about future rate hikes in their policy statement after the last meeting she did say they have further to go on the inflation pot suggesting there may be more rate hikes to fight their very high inflation. >> our policy editor kathleen hays. let's get you to vonnie quinn. >> vladimir putin says russia is ready to discuss china's initiative for ending the conflict in ukraine. he spoke as he welcomed president xi to moscow. this marks xi's most ambitious attempt to play peacemaker. the u.s. and its allies have rejected the plan outright. president biden has issued his first veto. he has rejected legislation that

would prevent retirement portfolio managers i'm considering climate change and other esg issues in their investment decisions. this was created to undo a requirement mandating that retirement plans focus purely on financial gains. sri lanka will get a $3 billion imf loan. the bailout will provide much-needed funding for the bankrupt nation which is grappling with soaring prices, supply shortages and eroded foreign currency reserves. the world's leading climate science body is warning that deep rapid and sustained emissions cuts are urgently needed to keep climate change within limbo -- livable limits. a new report from ipcc is summarizing five years of its research saying entering the stability of life on earth is moving out of reach. global news 24-hours a day, powered by more than 2700

journalists and analysts in over 120 countries. i am vonnie quinn and this is bloomberg. >> still ahead, we get more into xi's bid to play peacemaker as white america who welcomes him to moscow. we get insight from the university of new south wales. coming up next, we meet with mainstreet asset management as the market upheaval circles warnings of a minsky moment. this is bloomberg. ♪ will you make something better? create something new? our dell technologies advisors can provide you with the tools and expertise you need to bring out the innovator in you. what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management

are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

>> we have a self-induced crisis by irresponsible policy. >> this is a different situation. >> very different. >> this is just the beginning of us trying to make sense of how systemic this can get. >> we think this is closer to the beginning then the end and that will be a problem. >> we need backstops in place. >> we will see more regulation of banks. >> a lot more regulatory changes especially in the banking system. >> we need more supervision. >> we are facing a big fed meeting. >> the market is giving them 25 basis points. >> wait and watch what happens.

>> there is an opportunity for the fed to step in and add a bit of confidence to the situation. haidi: bloomberg tv guests on the fallout and the impact of what the fed does next. erin gibbs is senior partner at mainstreet asset management. financial market stability versus the fight against inflation and at the same time you have the likes of j.p. morgan saying the risks of a minsky moment are nearing for the markets. how close are we to that kind of instability? erin: i wish i had an exact answer. i think the risk is high. and i think we should be doing everything in our power to stop that. we know these initial problems are bankruptcies or failings can

snowball and cause much larger issues. based off if there is a dramatic downturn in asset values. and so i think just being able to stabilize it should be number one priority for the fed. and ahead of inflationary, recessionary issues we need stability in the banking system and that should be number one right now. haidi: are you finding compelling reasons to look at u.s. regional banks, big banks or read -- or european banks? erin: whenever we have these numbers like 62% down to 40% people wonder if it is time to jump in. i would say when there are so many unknowns and we have not hit that point of stability just yet -- we are talking about next steps and what will the fed do what the next meeting and what is happening in europe, i think the best thing is to stay away

from these and if you have an exposure i would say take the losses and reduce the exposure. i think there is -- if you are looking at quality, i think there is definitely a stronger banking situation in europe but again we don't know how it is falling out. a new headline and do development every day. this is not the point when i want to get in but i am looking at when they look to become value buys but it could be several months before we know the final fallout. shery: how do you stay invested in this environment? erin: one of the things i have been looking at -- i've not been heavily invested in banks in any case but some of the things that still look good to me are trades that are focused on tourism and luxury. i'm specifically looking at european stocks though not as much as the u.k.

more continental europe. i like ryanair, lvmh, amadeus it. in the european stocks have been outperforming. also the last couple of weeks we have seen a nice pop in some of the europe tech names like adobe, meta. i think they still have some room to run but they are starting to hit their high valuation point. we have seen the large cap growth tech stocks outperform and do well the last few weeks. shery: we had bill tweeting right now saying the federal reserve should pause on wednesday. we have had a number of major

shocks to the system including three closures in a week wiping out holders. what are your thoughts? i keep hearing conflicting opinions on whether or not the fomc should pause or not because even a pause could give the wrong impression to the markets at the fed is blinking. erin: i actually agree. i think everything should be done to stabilize the situation meaning do not raise rates. let's get the bonds and stabilize the bond prices. i think raising by 25 and depreciating the other assets would be one of the worst things they could do. i agree that i think stability should be the number one priority over inflation. in that case i don't think it is going to give the impression

they are done. we know we still have over 6% inflation in the u.s. we know the rate hikes should be coming if we don't see the decreases. but getting the two months pause because we don't have another hike at the next meeting. getting two months where rates are stabilized i think would really help get the banks -- get the deposits shifted and get the stability out there. shery: in the meantime given the expectations we have seen the dollar fall to a one-month low which will have implications for emerging market assets especially across asia. do you stay invested overseas? are you still exposed to the reopening play in china that has been going on for a while? erin: they have still been doing well even with the downturn to the dollar. it has not hit the lows it did in early february. it has come down off the peaks

we saw about two weeks ago. but even in the face of a weakening dollar, -- i'm sorry, he weakening euro and strengthening dollar we are still seeing european stocks do well. and even in the face of china and the reopening happening, the outperformance is still there. and so, i think even when they have had down days, they have not been as bad as we have seen in the u.s. from a value proposition you are with a safer bet when it comes to the high-quality european stocks. shery: erin gibbs, senior partner and cio at mainstreet asset management. it a roundup of the stories you need to know. dayb is your function available on mobile with the bloomberg app and you can customize your settings so you

only get the news on the industries and assets that you care about. this is bloomberg. ♪

go. go green. go wind turbines. go gorgeous reliable grid. go emerson software. go science people. go breakthrough meds and safe science. go space age welds for super silent cars. go big. or go home. from software that delivers new cures at warp speed, to technology that makes clean energy reliable, emerson innovation helps make the world healthier, safer, smarter and more sustainable. go boldly. emerson.

shery: here's a quick check of the latest headlines. amazon has announced a second round of massive job cuts. the ceo says 9000 more employees will be laid off in the coming weeks as the company seeks to streamline costs. affected workers will be mostly from the web services and twitch service groups. the company has cut 18,000 role since november. air india is in talks with banks to finance its record-breaking order of aircraft from boeing and airbus. the ceo says his, -- he is confident of securing the funds

needed angst to the backing of a parent company. the former -- the carrier seeks to compete with qatar airways for lucrative routes to the u.s. and europe. and ago ceo says the company has apple quepasa -- ample capacity to fuel its growth as well as to take on intensifying competition. it has a fleet of 302 aircraft and an order book of 500 jets. still ahead, xi jinping's bid to play peacemaker as vladimir putin welcomes him to moscow. analysis next. this is bloomberg. ♪

>> the real trouble starts --

that is the bond market saying the fed will have to be cutting here at some point so the 2-year note rallies in a way the yield curve reese deepens -- resteepe ns. the equity market is still in denial. haidi: that was morgan stanley's cio mike wilson saying bond markets are pricing in a recession but equity investors are not so convinced. they are thinking the backstopping of bank posits by the fed could be something that would lead to another form of qe in the markets. whether this represents a buying opportunity for stocks, like wilson also not convinced. he has focusing on the u.s. equity risk premium. the s&p 500 current earnings yield minus --. we are back around the 230 level. he says until we get to 400 it is not going to be a buying

opportunity. where he says investors should be focusing their attention closely to is deteriorating credit conditions. that is restrictive. it is something that is weighing on the growth outlook. whether or not market participants thank earnings estimates are still too high, he says we have not had enough of profit forecast cuts coming through yet and that will happen from analysts as the earnings season approaches. in terms of where he is recommending to buy, he says stay defensive and steer clear of the i.t. or growth stocks. we are seeing the i.t. index in the red as we get a half-hour into the trading session for australia. it is leading the gains, the more progrowth areas of energy, materials and financials. both around 1.2%. haidi: let's get you to vonnie

quinn. vonnie: sources say first citizens bancshares are still working on a deal for silicon valley bank. the lender submitted an offer on sunday and may participate in auctions this week. the fbi see says it is extending the bidding process through friday after getting substantial interest from multiple potential buyers. pakistan is closer to unlocking a crucial bailout from the imf. leaders say pakistan has made substantial progress to meeting policy commitments as it seeks to unlock loans. the cash-strapped nation needs to repay about $3 billion in debt by june. ecb president says there is no conflict between the targeting mission and its responsibility to stave off financial system threats. he told you long -- she told eu lawmakers that she ensures the

banking sector remain strong. >> we are very confident that the capital and liquidity positions of the euro area bank are very satisfactory with significant capital ratio and liquidity coverage ratio way in excess of requirements. vonnie: fenlon has been named the world's happiest nation for the sixth consecutive year. it puts finland way ahead many countries. denmark claims second-place and iceland third. new zealand ranked 10th overall and is the happiest place in the asia-pacific. global news 24-hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn and this is bloomberg. shery: vladimir putin says russia is ready to discuss china's initiative for ending

the conflict in ukraine. he spoke as he welcomed president xi jinping to moscow for a three-day visit. our next guest says the visit will not have immediate implications for the war. alexander korolev is a senior lecturer at university of new south wales. when the cease fire paper was largely dismissed by the u.s. and its allies, what are you expecting the meeting to do? alexander: i think these so-called paper is not really a peace plan. it is not a step by step plan on how to end the war but it is more of a position paper. china repeats what was said multiple times by xi jinping but also other chinese officials. there are two interesting points in the paper which look quite pro-russian. the first is that the concept of

security which is kremlin's pretext for the invasion of ukraine and the second is the illegal economic sanctions should be lifted. this paper should not be taken as a step-by-step guideline. it is more of a position paper that signals where china stands in terms of its approach to the ukraine war. and i think this meeting is in reality less about the ukraine war itself but about global geopolitics because china is also in a very tricky situation after the recent meeting of the member states which consolidated this alliance into an increasingly anti-china block.

shery: basically solidifying the faultlines and also how much of a boost president xi jinping's visit gives to vladimir putin that so far had been sidelined from global politics given the invasion. alexander: this is a significant boost i think. it signals to the world that russia is not alone and it has powerful friends. xi jinping did not really have to go to moscow. this visit is really a demonstration of the fact that china stands with russia and china is not going to turn its back to russia and it does signal a lot of support for putin and it is a demonstration that you can continue sanctioning me but i have big

trade partners and big strategic partners. haidi: it also comes days after the icc issued a warrant for his arrest. the timing of the visit and the support beijing is reiterating for moscow, what about the vicious circle or cycle with worsening relations between china and allies? alexander: i think that will be one of the consequences. china has demonstrated that it is staying close to russia and this will trigger more of a reaction from the united states and its core allies. not so much from europe but u.k. , australia and the u.s. there are reputational costs associated with being close to russia.

however, i don't think china cares about that anymore because there is a growing recognition in beijing that u.s. and china are on the collision course. it is more about consolidating geopolitical interests rather than worrying about reputational costs. but definitely i think the reaction that will follow from the west will be that china supporting russia and china is supporting war criminals and china is very defiant. and there is a consolidating russia and china alignment that we should be worried about. this arc of authoritarianism as australian leaders put it. haidi: there was a discussion about converging onto a trade and mutual interests and strategic interests. what do you see are the priorities there?

when it comes to some of the things that beijing needs like tech collaboration and access to high-tech, it is unclear that russia can provide much of that. alexander: russia cannot honestly. and speaking of xi jinping's paper, it is very general. i don't really expect any big statements coming from china especially because this is not just china's style. they are very careful. they are very diplomatic. this meeting will most likely be presented as another incremental consolidation of china-russian alignment. and in terms of economic cooperation there is not much russia can offer however russia does have strategic assets that china is interested in such as energy and military technology

especially in the context of the impending confrontation with the united states in the asia-pacific. i think the importance of the assets include a safe supply of energy and that is critical to china. i think now it is more about geopolitics really then economic cooperation. definitely economic cooperation matters but i think china prioritizes security and geopolitical concerns. haidi: alexander korolev, senior lecturer at the university of new south wales we appreciate your time with us carry coming up we are digging into new research revealing how are new opals uptake is expected to pick up in asia this year. you will get more in a moment. -- we will get more in a moment. this is bloomberg. ♪

what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower, even if we do live to 100 we don't have to worry. eh, not worried.

take control of your financial future to empower what's next. old school hard work meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪ haidi: the world's leading climate science bodies are warning that emissions cuts are urgently needed to keep climate change within livable limits. a new report from the intergovernmental panel on climate change has summarized five years of its own research. it says entering the stability of much of life on earth is fast-moving out of reach unless climate efforts are fast-track by every country and every sector. haidi: one region that is

aggressively raising long-term climate ambitions as southeast asia which has been receiving greater financing support over the years. southeast asian nations have long-term decarbonization targets. are they adequate? >> thank you. one thing we have observed is the momentum has been very encouraging. we are now seeing a lot of southeast asian governments considering carbon neutrality. in some enhanced government contributions setting more aggressive emissions reductions targets. but if we look at the recommendations that came out from the ipcc and what is required to limit coverage arises to 1.5 degrees it is every country or we need global

net zero emissions by 2050, the current targets in the region we are seeing of 2060, 2065 is not adequate. right now when we see what the -- when the governments do their own pathway forecasts is that they are still expecting that due to economic growth, the emissions on an absolute level are still expected to grow 2-3 times within a decade and that is not fast enough or not on the timeline needed to limit temperature rise globally. shery: you mentioned the governments in southeast asia. is it the lack of policy urgency? what else should nations do? >> right now when we look at the emissions makeup, the largest sector that contributes emissions and south east asia, we see the power sector is one of the largest contributors followed by the transport sector. the good news is that mature

technologies that help negate emissions from the power sector is already available and can be deployed and scaled up rapidly and one example that we saw this happen in was in vietnam where they built almost 20 gigawatts of solar into year is over 2019 and 2020. but what we really need to see governments do is focus on scaling up the technologies and develop their own plan and putting in the targets and regulatory frameworks to push developments and provide investment signals that developers and investors need. the other is to focus on phasing out fossil fuel generations in the long-term but also critically important to limit the addition of new fossil fuel generation capacities right now. haidi: what is the role of developed countries in this? >> that is a great question. one thing we have seen is the

southeast asian governments are banking on assistance from developed countries be it financial or technological to help them accelerate the net zero goal while still balancing and allowing for the economy to grow. one of the very important developments we have seen last year was the international partners group has actually signed an energy transition partnership with indonesia and vietnam standing at the t-bill yet and 15 billion respectively to help them navigate some of the challenges they have an excel the rating retirement of coal plants and making space and their power system for more renewable capacity deployment. the other thing we saw where that we are observing right now is the mind for clean power in one country such as singapore is driving the proposal and increased pipeline and countries such as cambodia, vietnam, laos

and indonesia so tapping on the mind for clean power in other countries can help push increasing the deployment in emerging markets. shery: bloomberg southeast asian analyst caroline on the energy transition in the region. we do have an alert on the bloomberg. you're getting the latest from the foreign ministry of china on president xi jinping and vladimir putin's meeting. president xi told that ties with russia are china's strategic choice. we have seen president xi in moscow this weekend he has already said that china highly values the relationship with russia wall russia has reiterated that they are carefully studying chinese proposals for resolving the crisis in ukraine. president xi is expected to

have his first conversation with president zelenskyy. the statement coming from the chinese foreign ministry is that president xi jinping has told potent that the ties with russia are china's strategic choice. plenty more to come. this is bloomberg. ♪ what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

haidi: air india says it is in talks with banks to fund its record-breaking order for aircraft from airbus and boeing. the cio told us why he expects expansion to pay off even the prospects. >> if we look at the drivers behind the growth in indian aviation and we look at the population size and the economic growth rate which is the largest of any large country in the world, we look at the dias brought in the geographic position and we look at the number of wide-body aircraft operated by indian carriers, the opportunity is ours for the taking. operating more nonstop services to the key international cities with a good product, good service, reliable and well priced, i think we can make our own destiny. >> what percent of international traffic do you aim to capture? >> as part of our five-year

transformation program which has three phases over the course of the five years. by the end we are aiming for about 30% market share to and from india but also domestically within india. >> how much you have currently? >> domestically if you take the four airlines that form the larger group including what we are seeking to have regulatory approval of we have about 25% and internationally about 12%. >> air india has signed an aircraft purchase of 470 and you also have options to buy about 370 aircraft. when do you plan to exercise options and the letters of intent? >> the options are accessed -- exercisable over a period of time and we will decide based on the progression of the market and our business and the demand

opportunity that we see ahead of us. 470 firm orders we have committed to as the largest aircraft order, single order in history so it is already a significant number of aircraft. the options rights allow us to flex up as we see the opportunity ahead of us at that point in time but it is too soon to make that call now. >> it is a huge order. have you lined up banks to finance the purchase? >> we are in the process of that now. we have the backing of one so there is financing already. we have already made down pearman's -- we have already made down payments. we will pursue the financing over a period of time because the delivery time is spread over a period of a few years. >> you are talking to banks. >> we have put out a rfb.

>> are you exploring any culture agreements with airlines to capture a bigger slice of international traffic? >> we are already a member of the start alliance and we have activated a number of cultural agreements with other members of the alliance as well as other airlines with which we had a previous relationship. many of these were put in abeyance during covid and are being resumed. the broader alliance strategy for air india is something we are in the process of reviewing and refining because clearly we think there is significant opportunity not just for us but for like-minded carriers around the world in key markets to cooperate in a better way and stronger way with the new air india. shery: the air india ceo speaking with bloomberg in new delhi. here's a quick check of the latest headlines. texas added hsbc to its list of

financial firms that boycott the fossil fuel industry citing the recent policy to not provide fresh lending or financing to new oil and gas fields. the list is based on a 2021 state law that limits public entities from doing business with firms boycotting oil and gas producers. jp morgan is said to have owned the london metal exchange nickel contracts that turned out to be act by bags of stones rather than metal. the lummi announced -- lme announced it it canceled nine contracts after discovering irregularities at a certain warehouse. the news has been met with shock in the metals world because these contracts are generally viewed as beyond question. moody's upgraded tesla following a similar move by as an pew global ratings in october. credit ratings firm sees the carmaker as one of the foremost manufacturers of electric vehicles with high

profitability. traditionally a high-grade rating from at least two agencies is enough to be formally considered a blue-chip. haidi: these are the stocks we will be watching. ev makers in focus including hyundai and kia. also watching as k innovations --sk innovations due to sizable investments in battery production. coming up in the next hour we will be hearing why oreana financial services believes a credit crunch is more likely to happen in the u.s. and we will also be talking to a former banker satyajit das about fresh cuts to come. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? anyone can become an agent of innovation with invesco qqq,

a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com what does it mean to be ever better? its your customers getting what they ordered when they expect it. discover how ryder ecommerce makes your customer's experience ever better. everything's changing so quickly. discobefore the xfinitymerce makes your10g network,experience we didn't have internet that let us play all at once. every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me. you have no idea how good you've got it. huh? what a time to be alive. introducing the next generation 10g network. only from xfinity. the future starts now. as a business owner,

your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.

shery: this is "daybreak: asia." we will see if the calm that has returned to markets in the u.s. continues in asia. we are seeing more support on u.s. futures and a key question is what happens with this banking turmoil in the u.s. in europe as well as we had to the fomc. >> fomc, the big question and also as we continue to see signs of the economic slowdown and amazon continuing to cut jobs. the question as we hear from j.p. morgan about the increasing chances of a minsky moment is how long this relative calm could last four. >> we have the open upon us. japan is shut for a public holiday. but we are focusing on trade numbers in particular.

the key headline we are watching for is exports. they dropped nearly 18% in the first 20 days. of the month. focusing on in particular china given china shares of south korean tech is at the lowest level now in 13 years so that suggests -- taking place. you can see chip exports, is significant drop. down 44.7% on the year and to china as well and the focus there down 36.2% curate a little better than the month prior but we are focusing in on that given the broader tech issues and geopolitical concerns between beijing and seoul. imports are another watch for us and that number coming in -- it is at a reduction of 17.4% on

the year. that is the open we have for korea at the start of today's trading. the kospi gaining. what came through the wall street session, it is looking a little stronger, the korean wan. we are focusing in on the open for australia. one hour into the session, some sectors leading the gains, energy and materials among those. brent crude coming online a little weaker, down .3%. the aussie a little lower. we have rba meeting minutes later this hour which could shed more light on what australian policymakers are thinking about the banking issues in the u.s. and europe. shery: the banking issues have led to a re-think by many analysts. according to jp morgan the turmoil and the u.s. sector has made the possibility of a soft landing less likely and an

increased possibility of a minsky moment in markets. let's bring in a chief analyst of bloomberg intelligence. also with us is dr. isaac poole. gina, let me start with you because we saw treasury yields rebound a little but the trading so far seems to have signaled perhaps a pivot that we might see. what are the markets telling us and what is the likelihood we will actually see that? >> thank you for having me. i do think it is interesting because u.s. equity market outperformed materially the last weekend we know the banking crisis is being generated out of the u.s. much of the optimism is being misperceived or miscast by some commentators as the equity markets ignoring the risks and focusing on the fed backstop and focusing on the deposit guarantees and the issues that

regulators have initiated in order to try to backstop confidence in the financial sector. that may be part of it but i think the bigger part is the flight to quality and defense of trade that has benefited the u.s. and also some flight into assets perceived as likely to benefit as a result of the fed easing. given the bond market signals which is the yield curve has steepened materially and the bond market seems to be confident the fed will ease and pivot, the market is taking those cues as a moment of potential change. the changes working in favor of technology and communication stocks and in disfavor of energy stocks. a reversal of what we saw in 2022. shery: isaac, what are your expectations of what will happen on wednesday and how you

positioning ahead of that? isaac: i think it is likely that the fed hikes by a quarter of a percentage. they have prepared markets for that. it would be an admission that things are worse if they did not go ahead and hike. what we are likely to see in the washout is a little more conditionality from fed chair powell saying, we are aware there are challenges out there in the banking system. we are going to take that as it comes month by month as it progresses. inflation is still too high. we are comfortable waiting to see how the data progresses. i think that will be important because as we look at the two year yield it has collapsed. it is pricing in rate cuts. i think the fed will want to lean against that a little bit. but with yields looking elevated

there are opportunities to get back in and benefit. haidi: when one of wall street's biggest bowls starts to talk about -- bulls starts to talk about the increased chance for a minsky moment, people listen. is there a sense the fallout of this will play into the real economy and have longer-term ramifications than just what we see with short or medium term market volatility? isaac: when we look out over the next 6-12 months there is a greater chance we have some sort of recession coming through. it does not need to be a minsky moment but it is likely to follow a good old-fashioned credit crunch. that is already starting to come through as we see credit conditions have tightened and will be tightened further. we will see a reduction in credit availability and what that means for us is the days of

labor hoarding are over and we could see a real move higher in unemployment in the u.s. and that is a pathway for a credit crunch. that seems to have been sown already. we could avoid it but the risk is skewed towards a more negative scenario now. shery: it was several people that talked about the risks being illustrated for the s&p 500. you think investors are getting that message? gina: i think a lot of 2022 anticipating weakness coming. we had a major sentiment washout occur in late september, early october 2022 and our models were suggesting the market was expecting a downdraft in earnings.

this explains a lot of the market price action since which the equity market has been able to stabilize in an environment in which earnings estimates are coming materially lowered. the market has also been able to stabilize to some degree in an environment in which we are increasingly fearful about the ultimate recession emerging. i think when you think bigger picture, we have talking about the recession emerging for more than a year on the heels of russia's invasion of ukraine. all of the recession modeling started to pop up and the fed through their increase of interest rates only likely insured the recession was coming in 2023. the equity market has had a norm us on of time to prepare for the recession coming. now it is a matter of how deep and long the recession that will emerge occur. and will we see a recovery going into 2024? that is the dynamic that the

market will continue to trade on this year. how deep will the recession be, are we prepared and how will the recovery come? shery: we are seeing bulls digging in their heels given that all of the issues including the landing issues seem to be stemming from advanced economies. what is your take? gina: i think it is similar. we run a scorecard and it shows the e.m. still best positioned to perform well. the u.s. is worse positioned among markets. much of that is because of the de-synchronized recovery still underway post-pandemic. china reopening and recovering should elevate e.m. asia. there are some exposures to be concerned about in dollar funded emerging markets. they are most at risk even the

linkages to the u.s. those dependent on exports into the u.s. could be at risk but we had a year to prepare for that and i think that was a lot of what 2022's trade was about. downside risk is minimized on the fact that we have been trading on this notion for more than a year. shery: china is a big part of the emerging markets call. what is your position? isaac: i agree with gina on a lot of that. china was in a deep recession that lasted for most of last year and the recovery is only just starting. it is being supported by monetary and fiscal policy and authorities. we are going to see the consumer awaken and start spending down some of their excess savings. that does position china to do quite well relative to the rest of the world this year and against a u.s. recession. it will impact equities broadly.

but we think asia, china in particular and the parts connected to china could perform quite well this year nevertheless. haidi: we have seen a lot of analysis including from bloomberg intelligence looking at the resilience of a lot of asian financials especially here in australia for example. do any of these markets are appealed to you because it feels a little strange that perhaps aussie banks for example are not getting that much love when they do seem to be in a much more robust situation comparatively? isaac: i think that is a fair comment. the australian banking system is different perhaps what we see in europe and the u.s. they are in a good position and they have been hit even so from european and u.s. banks. we think australia looks broadly relatively attractive as an option compared to the rest of

the world. i think banks are well capitalized and well-positioned and to the australian economy, it is chugging along quite well with a central bank has been really sensible about moving to slow the pace of rate hikes and i think they are close to being done. we will see that in the minutes. that will be supported by the broader australian economy relative to the rest of the world were the course of the year. haidi: isaac, always great to chat with you and also gina from bloomberg intelligence. great to have you. let's get you to annabelle to talk more about australian financials -- asian financials. >> isaac talking about australian banks being in fairly robust shape. taking a look at korean financial stocks. we are 12 minutes into the session. japan shut for a public holiday. these ones are moving, a little mixed but mostly to the

downside. that is a surprise given the lead and we had from the wall street session where we saw a lot of the u.s. banks moving to the outside with the exception of first republic ramp -- bank. expectations building for the fed to ease off its aggressive pop later this week. let's change and look at another sector we are watching in particular. korean gaming stocks. these are jumping at the start of trade. this is down to china. they have approved foreign online games for march. a total of 27 foreign games that have been green led with five coming from korea. analysts saying this is positive for the sector overall. focusing on those that have had their titles approved. netmarble and others on the list. shery: let's get to vonnie quinn. vonnie: vladimir putin says

russia is ready to discuss china's initiative for ending the conflict in ukraine. he spoke as he welcomed china's president xi jinping to moscow. the trip marks his most ambitious effort to be a peacemaker however ukraine's leaders has been -- have been cool to the plan and u.s. leaders have rejected it outright. pakistan is closer to unlocking a bailout. lender says pakistan has made substantial progress. it seeks to unlock about $6.5 billion in loans. the nation needs to repay about $3 billion in debt by june. a rare and often deadly fungus is reportedly spreading rapidly across the u.s. the wall street journal quotes the cdc saying it infected almost 2400 people last year out from 53 infections six years earlier. it was discovered in japan

several years ago and has a mortality rate -- and it is risky for older people and those with compromised immune systems. jp morgan and deutsche bank have won the dismissal of several claims tied to them regarding jeffrey epstein. the majority of the claims were dismissed. the judge allowed three of the names to proceed. global news 24-hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn and this is bloomberg. haidi: still ahead as regulators rush to shore up market confidence we speak to an author and former banker that believes there are further shocks to come in this financial reset. why big banks are taking interest income -- in risky credit suisse debt that is said to have been brought down to zero. this is bloomberg. ♪

a third kid. what if she likes playing golf? it's expensive. we're outlawing golf. wait. can i still play? since we work with emower, we don't have to worry about planning for a third kid. you can still play golf... sometimes. take control of your financial future to empower what's next. ♪ at morgan stanley, we see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities and relentlessly working with you to make them real. ♪

because grit and vision working in lockstep ♪ puts you on the path to your full potential. ♪ when covid hit, we had some challenges. i heard about the payroll tax refund that allowed us to keep the people that have been here taking care of us. learn more at getrefunds.com.

haidi: the market for coco bonds are expected to drive up in asia though losses have been narrow following credit suisse right down. -- write down. are we starting to see consequences? >> we have seen some prosper.

-- we saw some big price moves. relatively speaking across the region it was pretty small. we are expecting to see the transactions dry up. issuance dry up and that will impact banks ability to call so we think it will be a quiet period and there could be volatility on the back end. haidi: could there be global consequences? we have the u.s. backstop for lenders there. if u.s. is considered safer, could that have a follow-on effect? >> the old adage of don't put all of your eggs in one basket comes to mind but there are two banks that have explicitly said that their depositors are fine. we saw a third instance with first republic where banks rejected liquidity doing the same thing. across the world we think

regulators and depositors are going to be asking the question -- how much is guaranteed? how much is safe? it is raising a lot of questions and there is the risk in the u.s. particularly that the limit is going to stand for nothing and people are going to expect more than that. shery: when it comes to credit suisse-ubs tieups know it was a heavily government involved deal and was brokered and backstopped by the government. what does that tell you about the risks around that that ubs was relying on so heavily to make this happen with very much a lot of -- a conviction being put in by the government. >> my colleague allison williams has written a fair bit on this with respect to this deal specifically. clearly ubs has said it did not

initiate the deal which implies it came from the regulator. ubs is wearing a lot of legal risk and balancing risk. they potentially are going to have to cease their buyback program. this has created a longer-term issue for ubs shareholders. the deal appears to be shape -- cheap but it is a longer-term problem. we saw the 11 bengs inject liquidity into first republic. there seems to have been conversations between janet yellen and at least jp morgan suggesting those decisions may have been made at higher levels as well. globally allison and our team are saying we need to look at the cost of capital for the larger banks. there is a lot of regulatory risk that we may have been slow to. shery: our senior analyst matt ingram joining us. we have an alert. elon musk weighing into the conversation of what the fomc

should do on wednesday. we had bill ackman tweeting at the fed should pause on wednesday and elon musk is saying that the fed needs to drop the rate by at least 50 basis points on wednesday. this in reaction to the tweet by phil ackman that we have had a number of major shocks to the system, three u.s. bank closures in a week wiping out equity and bondholders and elon musk adding to that conversation saying that the fed actually needs to drop the rate by at least 50 basis points on wednesday. there has been a lot of repricing when it comes to what the fed should do on wednesday. we have heard from one saying the fed should be careful not to show it is blinking. kathleen hays is here with the latest. former new york fed president bill dudley saying a pause at this point makes sense but it has to be done right. >> it has to be communicated

correctly. and bill dudley is no stranger to financial instability after all he was there during the great financial crisis and all that went with it. he disagrees. he does not think the fed will raise the rate 50 basis points. hardly anyone is betting on that. he does not think they will cut either. he makes the case for both sides of do you pause prudently or do you show people that you still have to fight inflation and go ahead with 25? >> the case for zero is do no harm. we know the banking system is under stress. i would you continue to raise rates? the case for 25 as to say we still have an inflation problem. we can use our liquidity to shore up the confidence of the banking system and use monetary policy to bring down inflation. if i had -- if i was sitting

there i would recommend taking a pause. but you have to do it in a way that does not alarm people. >> a way that does not alarm people is making sure that you are not doing this because another big bank is getting ready to fall or something like that. you are doing the pause because you want to give the system a chance to breathe. he also thinks they should continue the balance sheet run-up because -- and the quantitative easing. these are tools that can be used to slow down the run off. he thinks they overlap. bloomberg economics think they will go ahead with a 25 basis point hike does like the ecb. they don't want to send a potentially negative signal and they do still need to fight inflation. haidi: we just have some breaking news when it comes to banking regulators and what they

are reportedly mulling. the u.s. is studying ways to guarantee all bank deposits if the banking crisis continues. u.s. officials looking at ways to expand the deposit insurance to cover all. it is a move to head off a potential financial crisis. staff is reviewing whether federal regulators have emergency authority to temporarily ensure deposits greater than the current $250,000 cap on most accounts. we are hearing these further developments to go even further and i suppose this backstop was one of the arguments people made by saying the fed does have that ability to continue on its inflation front. >> i think we saw during the pandemic and the financial crisis when the federal reserve needs to take another step to get something done particularly

when it comes to the question of financial stability and banks, they can go into their hats and pull out all kinds of things. also one of the big questions around svb was there was so many people with accounts way more than 200 $50,000, the maximum that they ensured. for most americans, most people don't have that in their checking account but every small business that keeps their payrolls running out of their bank and hold those kinds of accounts, those are the people that stand at risk. and if it ripples, it hurts the company, their workers and all kinds of things. and the other thing about this sort of thing though is when you see the treasury is looking at ways to guarantee all bank deposits if the crisis continues, that is what they are worried about. it is a tough thing because

confidence, trying to make people feel reassured is difficult when it is clear the government is still worried about things getting worse. but for people that a been through this kind of thing you know that it gets out of control. it is not that initially anything was so bad but then suddenly a gets bad and then worse. shery: kathleen hays what the reaction to the news that we got that the u.s. is studying ways to guarantee all bank deposits if the crisis grows and we are seeing a swift reaction in the markets as well with u.s. futures jumping. s&p futures up .3%. we saw u.s. stocks finish higher as regulators worldwide rushed to shore up market confidence and now we are curing u.s. officials are studying ways to temporally expand the federal deposit insurance cores coverage of all deposits and we are seeing the market reaction with nasdaq futures also gaining .3%.

we were seeing treasuries slumping. we will see how they come up in the asia trade in -- trading session as we head towards the fomc as well. haidi: it shows behind the scenes the deliberations and how much increasing concern is being held about systemic volatility and the stability of the banking system. we have heard midsized banks calling for government intervention. this is what we are seeing in the european stock futures session. lenders rebounding after the credit suisse deal was being digested by investors. we are seeing an upside to german dax these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need

for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today. when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't. the weight just fell off.

i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will release you. >> we do have the meeting

minutes from march. this is the biggest take away to reconsider the case for a rate pause at the next meeting. they really looked at the headline cpi picking in the fourth quarter. core inflation has been seen as one of the reasons we were perhaps closer to a pause than before. they also talked about talking with retailers, talking about the impact of cost of cost-of-living and these rate hikes on potential consumer sentiment. further tightening likely needed to bring down cpi. the outlook for consumption remained in the key uncertainty. the economic outlook is uncertain. the pause time and will be

determined by economic data. when it comes to broader bank instability and other major markets, less of a concern for australia with the rba recently saying the banks here in australia are strong and that banking fallout will still be issues they will consider in april and they are closely monitoring. as we know, it is quite a different picture when it comes to australian lenders versus what we have seen in the u.s. and europe. >> fairly well insulated from those issues faced by u.s. banks and europe. it is clearly a concern for the rba still and we could see a pause in the months ahead determined by the economic outlook. you can see the retreat here.

aussie dollar slightly weaker coming off of this. also concerns from china. all seat stocks are gaining, up one point 2%. energy, materials, financials leading the gains. a key headline that has dropped that the u.s. is studying ways to guarantee all bank deposits if the crisis grows. that is something we -- will be supportive for equities. the kospi also turning positive now in the session, up a tenths of a percent. the korean won also getting there. -- gaining their. this is quite a significant development here and something

that can solidify the case for the fed to hike by 25 basis points. that is what officials have been priming the markets for. >> this either calls for a pause or a cut. let's get to vonnie quinn for headlines. >> first citizens bancshares are still working on a deal for silicon valley bank. the fdic six them in the bidding process through friday after getting substantial interest from multiple potential buyers. sri lanka has secured a $3 billion bill from the imf. it will include an immediate disbursement of 333 million dollars. it will provide funding for the bankrupt nation which is grappling with prices -- soaring prices. president biden has issued his

first be know since taking office -- his first veto since taking office. the labor department rule was created to undo a trump era requirement mandating that workplace retirement plans focus purely on financial gains. the world's leading climate science body is morning that emissions cuts are urgently needed to keep climate change within livable limits. a new report has summarized five years of its own research. it says ensuring the stability of much of life on earth is moving out of reach unless climate efforts are fast-track by every country in every sector. 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. >> vladimir putin has welcomed china's xi jinping to moscow for three days of talks aimed at boosting the relationship and

allowing the chinese president to present his ukraine peace plan. a reporter is in hong kong. what are we hearing so far? + they have had their first round of talks. there will be a couple of more days obviously. he has really been about pleasantries among the two gentlemen, saying there goals are in alignment. you can have a little bit of a take away from xi jinping's comments. he did not double down on his no limits partnership. but again, no relationship has no limits. the two gentlemen in the face of increased united states pressure and from the allies. and a word that has been going on for more than a year or trying to show some kind of solidarity. but xi jinping trying to portray himself as a global statesman in

trying to broker a peace deal or perhaps a cease-fire in ukraine. in the comments before the cameras, president xi did not even mention the war. state media has quoted him as essentially saying she is working to push this 12 point plan for peace with moscow behind closed doors. and vladimir putin has said he will study the plan, which was unveiled in february, much to the derision from ukraine as well as other parties. vladimir putin called xi a dear friend and said moscow is ready to discuss the blueprint for a cease-fire. xi said china values its relationship with russia. he did not reiterate the no

limits partnership. >> what has been begged u.s. response so far? -- what has been the u.s. response so far? >> the stakes are high for the world and if xi can convince vladimir putin to back off from the war that would be progress. i am not necessarily expecting that. after this trip, we expect xi and president zelenskyy to have a video phone call and that would be the first time those two gentlemen have met. it is something that president zelenskyy has wanted, but he also dismissed the peace plan that beijing came up with in february simply because that plan is short on details and the

details that they do have do not necessarily call for russian troops to pull out of ukraine. and any deal has to acknowledge ukrainian sovereignty. what antony blinken is saying is the deal beijing is putting forth is that it would freeze the military gains of russia right now. that means brushing territory -- russian territory in ukraine. it was dismissed fairly quickly by president zelenskyy, president biden and other allies. >> coming up, author and former banker satyajit das tells us how higher rates have significantly weakened the global banking system. this is bloomberg. ♪

do you ever worry we'll live forever? no, it's literally never crossed my mind. what if we live to like 100? that's 35 years of being retired. i don't want to outlive our money. and i have been eating all these stupid chia seeds! i could totally live to be 100! why do i keep taking such good care of my- since we started working with empower, we're able to get all our financial questions answered, so we don't have to worry. so you never- no. never. join 17 million people and take control of your financial future to empower what's next. start today at empower.com you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. >> air india is in talks with

banks to fund its order of 470 aircraft. the ceo told us why he expects expansion to pay off. >> if we look at the drivers

behind the growth in indian aviation, we look at the population, the economic growth rate which is the largest of any country, we look at the ds borah, the geographic position and we look at the number of wide-body aircraft operated by indian carriers, the opportunity is ours for the taking. operating more nonstop services to keep international cities with a good product, i think we can make our own destiny. >> what percentage of international traffic do you aim to capture? >> we see it as part of our five-year transformation program, which has three phases. by the end of it, we are aiming for 30% market share to and from india, but also domestically. >> how much do you have currently? >> domestically, if you take the

four airlines, we have about 25%. internationally we have about 12. >> india has signed aircraft purchases of 470. you also have options to buy more. when do you plan to exercise options and letters of intent? >> the options are exercisable across a period of time. we would assigned based on the progression of the market, the progression of our business, the demand opportunity that we see ahead of us. the 470 firm orders is the largest aircraft order in aircraft history. the options allow us to flex up as we see the opportunity ahead

of us, but it is too soon to make that call now. >> it is a huge order. have you lined up banks to finance the purchase? >> we are in the process now. we have some banking -- backing. we have already made some downpayments on the aircraft from internal funds. so we will proceed the fleet financing over a period of time. >> but you are talking to banks? >> we put an rfp out so there will be plenty of parties interested. >> are there any agreements with airlines to capture a bigger slice of international traffic? >> we have activated a number of co-chair agreements with other

members of star alliance as well as other airlines we previously had a relationship. the broader alliance strategy for air india is something we are in the process of reviewing and refining because clearly we think there is significant opportunity not just for us but for like-minded carriers around the world to cooperate in a stronger way. >> that was air india's ceo. here is a quick check of the headlines. indigo ceo says the company has ample capacity to fuel its growth as well as take on intensified competition. india's top airline has a fleet of 302 aircraft. the ceo also said the company has a steady flow of jet

deliveries until the end of the decade that will help growth. moody's upgraded tesla to investment grade status followed a similar move by s&p global ratings in october. this as a credit ratings firm says the carmaker is one of the foremost manufacturers of electric vehicles. traditionally a rating from at least two agencies is enough to be considered a blue chip. amazon has announced a second round of massive job cuts. andy jassy says 9000 more employees will be laid off in the coming weeks as the company seeks to streamline costs. workers will mostly be from the amazon web services, human resources. the company has cut 18,000 rolls since november. jp morgan is said to have owned but nickel contracts that turned

out to be back by backs of stones rather than metal. they signed nine nickel contracts worth 9.3 million dollars after discovering irregularities at a certain warehouse. the news has been met with shock and the metals world because contracts are generally viewed as beyond question. be sure to tune in to bloombergradio to hear more from the big newsmakers. broadcast live from our studio in hong kong, listen through the app, radio plus. 20 more ahead. stay with us. -- plenty more ahead. stay with us. ♪ that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity

to guide you through a changing world. ♪ what does it mean to be ever better? its your customers getting what they ordered when they expect it. discover how ryder ecommerce makes your customer's experience ever better. if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund

of up to $26,000 per employee. all it takes is eight minutes to get started. then work with professionals to assist your business with its forms and submit the application. go to getrefunds.com to learn more. >> we have a self-induced crisis by responsible>> when you have ,

it can only end in one of two

ways, one is a collapse. what people do not seem to focus on is the u.s. will be taken on liabilities. everybody seems to have forgotten we still have an ongoing debate in the united states which is unresolved, the debt ceiling. everybody was going on about their is no crisis here, nothing to see here. let's move on. but suddenly we find everybody has about ample liquidity. everybody is picking up anything they want. this is just starting. there are a whole bunch of things still to come. we are talking about interest rate and liquidity risk. eventually this will end up in loan losses.

and there is a lot of problems in bad debts still to come, not to mention other problems in other areas of financial markets. this will be uncovered quickly. >> we heard from somebody who was one of the biggest bowls on wall street, same vague chances of a minsky moment is approaching. is this what your talking about, this ultimate financial system reset that is long overdue given the gears of easy funding? -- years of easy funding? >> almost everybody i know who mentions the minsky moment has never read him. you have probably 30 years of various stages of easy money. it has created very artificial

wealth in terms of higher asset prices. it has also created an environment in which everything is based around an anchor of the zero cost money, particularly the last 15 years. you can get for 5% of u.s. treasuries. -- you can get four or 5% on u.s. treasuries. you will see this in four or five areas, one is in venture capital. remember, the shadow banking system which is half the size of the formal banking system and the private markets in which money has flowed in where there is a disconnect between markets and valuations. you have structured securities

and as we saw this morning, the hybrid area and all sorts of other risk-taking, a lot of which is held in asia, that is all going to come under stress. we are already seeing higher volatility in trading, derivatives. >> you mentioned all of these complex trading things. what are the risks now on things we have not seen especially since the global financial crisis? >> obviously the venture capital early and late stage funding is going to be a huge problem. we will see a lot of those startups fail. if you look at structured securities, everybody has been telling me that they are

perfectly safe and certainly the better tranches will be ok, but the lower tranches will get hit. the underlying loans are highly risky. the securities we are talking about have a different dimension, which is people have borrowed against them. the market values are going to go down because they are going to get downgraded and then people will have to come up with cash. then you will see contagion. >> really good to get your insights in a moment like this. we will have to leave it here. we are out of time. he is a best-selling author. this is bloomberg. ♪ ive investing and disciplined risk management

are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

go. go air that runs factory. go sensors and software. go find leaks. go fix-em. emerson technology detects compressed air leaks to save manufacturers, like colgate, over 20% in energy costs. go brush your teeth. go boldly. emerson. hi, i'm jason and i've lost 202 pounds on golo. being a veteran, the transition from the military into civilian over 20% in energy costs. life causes a lot of stress. i ate a lot for stress. golo and release has helped me with managing that stress and allowing me to focus on losing weight. for anyone struggling with weight and stress-related weight gain, i recommend golo to you. this is a real thing. this is not a hoax. you follow the plan, you'll lose weight.