kathleen: you are watching

daybreak asia coming to you live from new york, sydney and hong kong. annabelle: we are counting down to the market opens in tokyo and seoul. haidi: a show you has just come online. fears of easing and the prodding bank sector contagion -- the two-year treasury yield topping 4%. the fbi see announces probes into sfb and signature bank. the u.s. is suing binance and it ceo, calling its compliance efforts a sham. annabelle: we have the open of the asx 200. the question for investors is whether all this turmoil around the banking sector, if the worst of that has passed us. we are checking bank stocks in particular. that one moving it to the outside and global banks etf, 4% in the green. that does set a positive state

for us. we will be watching financials closely in this session. futures indicated a pop of .5%, new zealand meanwhile trading for the last couple of hours. as we see them move into banking stocks, a little more risk on sentiment coming into the session. the flipside has been yields are rising and treasuries. also you can see at the front end of the curve in australia and new zealand, the japanese in focus, given the rate of rentals and we had seen the japanese yen under pressure. keep an eye on what's happening with bitcoin, retreating to the 27,000 mark. unsurprising given we have the regulatory action coming against binance. binance saying the cftc complaint is unexpected but also disappointing. kathleen: let's take a look at

the futures on what they are telling us about what's behind us and ahead of us because you did get a small gain on the s&p 500, about .2%. it now on the future market is where it was when. the nasdaq was down about .8%, now up about .2. it has been up and down a lot as bank stocks have had a lot of the spotlight. in the rally in stocks and, regional lenders gained 3%. we are looking at citizens bank completing its -- first citizens, completing its purchase of sfb. talking about the buns, we did see the 10-year note getting up to -- down from yesterday. we have the two-year, 4% after being down 3.7%, quite a move in bonds. haidi: quite a move indeed.

we are seeing cautious optimism, edging toward taking on a bit more risk it comes to traders. still a lot of jitters when it comes to where the fed is going. do we see the fight against inflation taking priority as we see things combing a little bit for the banking sector? let's get to our cross asset reporter who joins us in melbourne. if you take a look at credit investors, are they lining their portfolios in a way that's assuming a more likely recession now? >> that's a great question. what we are seeing from j.p. morgan asset management, one of the world's largest asset managers, i spoke with their global head of investment grade credit and they are certain the u.s. is going to hit a recession. to trade through that, what they are doing is loading up on very safe credits, very much the

higher end of investment grade. when we start to see a recession materialize, their plan is to pivot into high yields and move down the capital stack to get the most out of that recession trade as investors start to look through to the other side. that's also what we are seeing across asset classes. the s&p 500 three days in the green. that suggests all this turmoil we've seen in the last few weeks, investors are willing to look beyond that to a brighter future yonder recession. kathleen: while there is a certain amount of uncertainty, people are optimistic there might be other shoe to drop, what parts of the market are attractive to be in now? richard: another great question. in terms of credit, there is a lot of interest in really safe

credits, even in the large banks, lisa coleman, the j.p. morgan asset head of global credit says they are just waiting for supply from these globally systemic banks. they just have not had to raise money. a lot of investors hanging out for that credit because it seems very attractive in this environment. there's a cyclical play that will help you through the cycle, so that is one area. and other i found interesting was a lot of credit investors are to take on risk moving down the capital stack of investment grade issuers. we've seen all this turmoil and 81 bonds, perhaps at that example of investors where they can see opportunities to get a bit more yield and still have a credit associated with an investment grade issuer. kathleen: more now on the

specifics of the deal by first citizens bancshares to buy citizen bank. the acquisition of first citizens taking over svb makes it one of the 15 biggest banks in the country. >> with some favorable terms, investors seem to love the deal. citizens bank shares up more than 50% and that gave a lift to regional banks in general in various banking indexes. the failure of silicon valley bank, one of the biggest failures since 2008 and the fbi see assisting in this acquisition, let's go to some of the key terms. first citizens is buying silicon valley bank assuming 56 billion dollars in deposits and purchasing $72 billion in loans. this at a discount according to the fbi see.

those are the favorable terms. the fbi see estimated the cost of this would be about $20 billion. that's to the insurance fund that takes care a lot of the deposits. because there is an equity right in this and we had the huge surge in the bank shares of stock, what you do have is the possibility the fbi see could already be in the money and profit from this as these are designed to do. haidi: regulators in the meantime, really pulling their punches. we are seeing this regulatory scrutiny both in the u.s. and europe at the moment. su: yes. u.s. regulators really came out swinging in their critical are marks. both signature bank in new york, which is very crypto focused and

silicon valley bank in california, which had a high concentration of tech and venture capital firms money. the fbi see chairman said it was worth noting these two institutions in his view were allowed to fail. he called silicon valley bank's collapse a textbook case of mismanagement. both the fbi see chairman and the federal reserve vice chairman for supervision provided assurances in their remarks about their financial system in general and that it is sound. they had some tough criticism for the heads of these two banks . for silicon valley bank, they said they had a concentrated business model catering to the tech and venture firms. it was not balanced. they had failed to manage the risks and liabilities when it came to significant assets and deposits leaving the bank and they waited far too long to invest other issues.

the possibility management directors at the banks could be held responsible, the regulators made very clear and have already launched these investigations and are well underway into the specifics of how these two banks collapsed so quickly in retrospect. haidi: u.s. regulators have accused binance and its ceo of routinely breaking derivatives rules. it is an allegation he called unexpected and disappointing. let's get the details now. annabelle: it has been quite interesting. we've had so much scrutiny on crypto plays in the u.s. and a lot of it seemed to be regulation through enforcement measures. but most of those have been coming from the sec and now the cftc has become involved with a single case against binance.

the allegation is they routinely broke derivatives rules and what has become the world's biggest crypto trading platform. the cftc says they should have registered with the agency years ago and since it continues to violate its rules and very harsh words coming through from the chief counsel at the cftc. she says the defendants own emails and chats reflect binance 's compliance efforts had been a sham and chose to place profits over following the law. kathleen: what has been the response from binance? annabelle: we got a statement from the company website in the last half hour or so and what we are hearing is this action from the cftc is both unexpected and disappointing. they say they don't agree with the characterization of the issues alleged in the complaint and are going to be giving a full response in due course. they outline that initial response, including they say

they have included best in class technology and are committed to transparency. they say cooperation with regulars and enforcement. they say they have been working with the cftc for two years and binance holds the highest number of licenses and registrations globally. haidi: do we see the likely outcome of this, seeing this is just the latest in regulatory action against binance and crypto? annabelle: we need to consider what the cftc can actually enforce. it means they can't really bring criminal charges against firms or seek jail time for individuals. but what we can expect or may happen would be some sort of fine or penalty against the company.

as well as individuals. there's another person in the spotlight who is the former chief compliance officer. the cftc says he also broke the rules. the allegation is senior managers failed to properly supervise their activities and take steps to violate u.s. laws, that clue -- includes instructing american customers to use vpns to obscure their locations and directing those customers with u.s. ties, there are institutional markets to open binance accounts under shell companies. this is something binance has rejected. they say they have taken significant steps to ensure they don't have any u.s. users active on their platforms. kathleen: let's get to vonnie quinn now with first word headlines. vonnie: tennessee police say the

suspect in a national school shooting had drawn a detailed map of the building, including potential entry points. 39-year-old children and three adults were shot and killed at the christian elementary school. police shot dead the attacker, i didn't fight as a 28-year-old former student. president biden has again called on congress to ban assault weapons. the israeli prime minister says he will delay a controversial plan to weaken the judiciary following it a of unprecedented strikes and protests. he is seeking a compromise with opponents of the bill. his push to give politicians more power over the selection of judges has triggered one of the most sustained times of civil unrest in the country's history. >> when there is an opportunity to avoid a civil war through dialogue, i as prime minister i am taking a timeout for dialogue and give real opportunity for dialogue. the system needs to bring about the necessary corrections in the legal system and we are given an

opportunity to achieve a broad consensus. this is a very worthy goal. vonnie: south korean officials are making a fresh arrest, saying he faces charges including fraud and breach of duty. he was detained last week. both korea and the u.s. are seeking his ex tradition on charges tied to the collapse of crypto products terrausd and luna. global news powered by more than 2700 journalists and analysts in 120 countries. i'm vonnie quinn. this is bloomberg. haidi: the lithium minor jumping after rejecting the proposal -- we are seeing a rally of about 53%, highest price on record after they rejected the unsolicited offer. that would have valued lion town at a 64% premium to the last close.

we did hear lion town responded and said it was and undervalued offer it has received and has been rejected. kathleen: still ahead, japan's prime minister pushes for a baby-boom of almost one third of its population now aged 65 or above. details about his plan later this hour. coming up next, evanson partner tells us why it's time to be cautious with u.s. equities with the opportunity of holding cash a lot lower. analysis in just a moment. this is bloomberg. ♪

>> our view is there's probably going to be more cost in that space because how investment was so egregious and the over earning was even worse. it is going to be a drip, drip,

drip. our suspicion is markets tend to figure this out ahead of the actual monday -- actual numbers coming down and because the bond market repriced itself overnight, we think the risk for the equity market is elevated more than it has been the last six or 12 months. haidi: the morgan chant -- morgan stanley chief equity strategist there. joining us is the advisor at evanson partners. when it comes to getting common the banking turmoil, the focus comes back to the fed. this chart shows what happens when rate expectations start to fall. we see group stocks set to outperform value stocks for the first time since before 2020. does it tell you the expectations when it comes to central banks and interest rates are starting to permanently reprice now? >> i think you are right all around. these stocks, their performance

has been correlated negatively to bond yields and the direction by interest rates. we can see if the market takes a few we are getting your peak interest rates and that is currently the view, most people are pricing in one extra rate hike. we could see a commencement rise -- commensurate rise in the value of growth stocks. our view is that's probably a little bit of a way off and we are more likely to see recession in the second half of this year as opposed to the rebound in growth stocks. haidi: what investment narrative are you using if a recession in the second half of the year is looking more likely? lucy: a probable scenario for some time has been a mild recession for 2023. but we've been seeing things in the last week that have firmed up that view for us and think it's the most likely scenario

and that's in the u.s.. we've been looking at the fed's ongoing commitment to rate rises and the impact that will have on the economy as well as deposits for small banks. we've seen the volatility in the banking activity. the deposits amounted to 2% of outflows of total deposit balance, so that is a trend we do not want to see continue. any potential risk of contagion into real estate, all of these factor into increasing risk of recession in the u.s. and a second half of the year. you said what's the narrative we are telling? if we look at typical recessions and what do they look like, there is a wide variance but recessions on average last for 10 months in the market usually bottoms six months into that recession. that's four months before the end of the economic recession,

so it is important when we are looking at rebounding and growth stocks that investors do for the large part stay invested because you don't know when equities will carry out ahead of a rebound. kathleen: i have to ask because soft landing -- jay powell use to hint at it until recently. americans have tons of savings in the bank. is there a chance the recession could be a bit atypical given the 2022 recession and the softer and shallower? lucy: there's a wide range of possibilities into what we see eventuate into the second half of the year. one of the things we can contribute is where the market is priced at the moment and does that price in enough risk to cushion investors from that? if we look at the average pe of the u.s. market at the moment, the s&p is trading at 17 times

12 months pe and that does not factor in any increase to earnings we might see which, if we look at the last earnings season, rising interests costs were pointed to as a reason for earnings misses. if we see a downgraded to earnings, looking at the average recessions, it's 15% to 20%. that takes the pe to 2221 times 12 month earnings. kathleen: what should i do with my money? go into a different kind of stock or park it in cash? what should i do? lucy: at the margins, we are using relative strength in certain sectors to raise cash for our investors. the risks that are around warrant that and the opportunity cost of holding cash is less than it has been in the past.

it's quite acceptable interest-rate returns on that. domestically in australia, we are looking at banks as a source of funding and cash raising there. we have a unique situation in australia where investors have a large aggregate exposure to the banks and that is by virtue of them taking out a large part of the index. we are trying to make sure investors an aggregate don't have an excessive exposure to the banks because even separate to the crisis in the banking we've seen in the last week, the outlook for the australian banking sector in terms of interest margins and moderation of growth is paramount. so it is about looking at opportunities where we don't need to be in the market, raising cash and being mindful for reentry points to capture as the market recovers. kathleen: patients to get the best return.

investment advisor at evans and partner. thanks for joining us. you can get around above the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers go to dayb . it's on the mobile on the bloomberg anywhere app and you can customize settings so you only get news on the industries and assets you care about. this is bloomberg. ♪ 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. the new chase ink business premier card is made for people like sam who make...? ...everyday products... ...designed smarter. like a smart coffee grinder - that orders fresh beans for you. oh, genius! for more breakthroughs like that... ...i need a breakthrough card... like ours! with 2.5% cash back on purchases of $5,000 or more... plus unlimited 2% cash back on all other purchases! and with greater spending potential, sam can keep making smart ideas...

...a brilliant reality! the new ink business premier card from chase for business. make more of what's yours.

kathleen: let's get a quick check of the business flash headlines. first energy has named neco, its fourth leader in three years as the u.s. utility giant tries to move past a corruption scandal. brian turney will become president and ceo from june 1. he joins from blackstone come or he was global head of portfolio management for the firms

infrastructure group. disney has become the first round of what's expected to be 7000 job cuts, a key part of a $5 billion savings drive announced in february. ceo bob iger said the first group of employees will be notified over the next four days while a second round impacting several thousand workers will happen in april. the last of the affected workers will receive notice before summer. coming up, japan's plan to reverse a rapid population decline with fears it could lead to a societal collapse. all the details next and a look at the ev market. what's happening in china? a price war but sales are still falling. this is bloomberg. ♪

>> are watching daybreak asia. 30 minutes out from the open.

the question for investors has been is the worst of the banking sector behind us? all the support we have seen from regulators, banks, the like, that has put the outlook for the central bank front and center because it does seem these fears of contagion are starting to ease and traders are repricing as you can see in this chart for the possibility of one hike left in the cycle. that i expect change -- that expectation is playing out of the bond space. yields rising on the short end of the curve. they have been whipsawed the past couple of weeks or so with the collapse of svb and all the news flow since. in terms of the outlook for stocks we are seeing financials gaining like we saw on wall street are the biggest move is coming through in the energy index. that is up nearly 3% and the days trading. the nikkei futures in singapore

also pointing to a small move higher. if you change now, what is interesting is when you take a look at trading volumes because here it is more nuanced, you can see on the days when the markets are moving higher, volumes are thinner than on days when you see markets moving to the downside. that is when traders have been a lot more active and as a result at least in the u.s., the volume has been declining. kathleen: let's get to japan's prime minister preparing a plan he says is a last chance to keep society functioning as a number of birth hits a new low. more details expected by the end of the month. let's bring in the asia government reporter. this is such an important issue for the country. why is he pushing the renewed efforts right now.

>> you have to look at the number of babies that were born last year. if you look to the 1970's, the trend has been downward in the number of babies for more than 2 billion a year. last year we saw a dramatically sharp shift downwards to less than 800,000 in that year which is a record low since rick began in the late 19th century. i think that was a sharp shock to the government which has recently stepped up its language. it is talking about societal collapse saying this is a last chance to reverse the trend. the prime minister is introducing a raft of new policies he hopes will help at least slow this downward trend. haidi: are they likely to work? what has been proposed so far? >> right. we do not have full details so far.

he has announced a couple of the plan so far. there is going to be a new agency for for -- for children's and families opening next month but what he has said so far is two things he feels are necessary. one is to reduce the burden on women. the way that japanese society is structured it is very much the woman's job to take care of the children and that is becoming an excessive burden for a lot of people so he is trying to spread the burden further and one way he is trying to do that is encourage men to take paternity leave. they do have the right to do that and subsidies if they do so but he is stepping up the subsidies especially for couples where both parents take paternity or maternity leave. he is talking about low incomes among young people. it is less clear what he is going to do about that. there are certain issues he can tackle such as making it less disadvantageous in tax terms for the lower earning partner to

work longer hours. as to whether these plans will work, what we have seen over the past decades, japan had been trying to tackle the problem since the 1990's. whether they will work remains a mystery but i think it remains clear something drastic has to be done if he is going to be able to make a change. kathleen: he will be setting the stage for a lot of other governments to try the same things. it is such a big issue all around the world. isabel reynolds in tokyo. let's get to vonnie quinn with the first word headlines. vonnie: the fdic says it is invested in the conduct of managers at svb and signature bank to the claim and what led to the collapse. the fdic chairman told the senate committee directors, officers and other parties will be held accountable. the fed vice chair called svb's failure the result of a textbook case of mismanagement. the chairman of barclays has described the recent allegations

against jes staley over his relationship with jeffrey epstein serious. staley quit after u.k. regulators found he had underplayed his relationship with the pedophile financier. the cftc has accused binance and its ceo of routinely breaking div evidence -- breaking derivative roles. in blog post he has called the cftc complaint unexpected and disappointing writing that binance has comprehensive compliance systems. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. haidi: schwab's $7 trillion empire is showing cracks facing pressure from bond losses and rising cash yields. executive say the business is

understood and has enough liquidity. let's break this down with senior markets editor edward harrison. this understanding of capital buffers, we have heard this multiple times over the past few weeks of turmoil. what is the situation when it comes to schwab's business? >> good to talk to you. we looked at the balance sheet and what we saw is schwab has a lot of its revenue that is coming via net interest margins. when you look at what schwab's revenue looked like last year, 50% of that was from net interest revenue. in essence they are not just a brokerage. they are a bank. a lot of those assets are very low yielding. mortgage backed securities. treasury securities. according to their 10k filing, the average yield for their

entire source of assets is 2%. that is very low. that is only doable in a zero interest rate environment because they are able to pay there deposit such low interest. we are at a point now where there is the potential for those deposits to leave and also for charles schwab to have a margin squeeze as a result of that. kathleen: this is the kind of hidden under the surface -- you see who is naked when the tie goods out -- the tide goes out kind of story. charles schwab has such a strong reputation. what would cause a run on them? >> it is the same thing causing a run on all of these banks. it is the fact they are not paying enough interest in terms of the deposit. there other places you can go. you can go to money market accounts. you can go to many different

places to get your yield. as a result of that now we are in a different interest rate environment schwab is going to have to either let some of the accounts go they are going to have to lift some of the yield they are supplying for the sweep. every account that has cash in it goes into a sweep and that money is being paid into it. if people have tens of thousands of dollars left in their schwab account and they are getting no interest on that money, they're more likely to put that into a money market account that will pay them three, 4% interest. haidi: edward harrison with the latest on schwab. we will continue watching that story. coming up next we will be looking at byd's earnings and how the chinese ev maker is coping with the price war that elon musk's tesla is waging on the mainland. we will get the outlet next -- the outlook next. this is bloomberg. ♪

>> first we need to go through the price war. i expect the industry to go through some profound fundamental consolidation. china now has too many automakers. kathleen: that is the nio ceo

speaking to bloomberg about how china's get more in our energy segment today with one of the biggest players of byd set to release results. our next guest expects byd to continue dominating the market. joining us is the founder and ceo of alto mobility. tell us about the price war which is hitting all these makers and sellers of ev but prices down, cells not up and tesla start -- sales not up and tesla started it. >> weaker sales coming into 2023 were expected. there was a large push last year in the zero covid era with stimulus in the market. there were purchase subsidies. there were tax incentives to get people to buy in 2022. that starved the market coming into 2023 of the demand as the

subsidies and incentives expired. the price war was kind of an inevitable consequence of demand being down. more and more supply coming online. tesla start of the price war. others have followed. more than 30 other brands have followed to get the consumers bank into the showrooms. kathleen: give us some numbers. how bad are the sales? who are they worse for? how severe is it so far? >> given the first two months of the year what we have and a terms of full calendar months, the market is down team percent year-over-year compared to the same period in 2022. if you look structurally, the market is quite different versus last year. the ev sales are up 19% year-over-year. the gasoline powered vehicle sales are down 21%. that is a significant problem

structurally for this industry. as was pointed out earlier, by the nio cfo, the market is oversupplied which means you have even more pressure on discounting to get the inventory to move. there is also a change in the emissions regulations coming in the second half of this year which means any cars that are not built to the new standard will have to be sold by them or they will not be able to achieve a license plate. there are structural problems under the market which is going to place a lot of pricing pressure between now and the middle of the year. haidi:haidi: you're coming to us out of shanghai and obviously we are a few months out of the very sudden reopening. just give us an idea of demand, of the consumer strength and the pick up or whether you think we are not at the full recovery yet. >> we are certainly not at a

point where the consumer confidence has been restored. until that time, until we start to see some fundamental economic tailwind, there is going to need to be incentives in this market. as i indicated, for more supply than demand creates a situation where discounting becomes inevitable. the other consequence if you are going to see more pressure on companies to export beyond china. china last year became the second largest export country in the world behind japan. it will probably become the largest in large part because of the oversupply condition. haidi: we talked a bit about the longer-term structural issues and pricing issues. we have seen this not just with ev's but a lot of asset classes in china. the boom bust cycle. the incentives and subsidies and the overcapacity appeared is there a good thing that comes out of this if the government

does not weigh in to save the weakest, could we end up with a a better and worse for ticket market in china? >> the good can come out of it if you allow consolidation to occur. in china that is difficult. in some cases companies are too big to fail. the social contract is to make sure the state owned enterprises that employ large burs of people stay alive which means they will step in and create subsidies that favor those type of businesses. but if the market does rationally consolidate, i think that means we are going to be able to have fewer more healthy companies as a result of that. in the meantime consumers are going to get great deals. the ones who are in the market are going to get better pricing because when supply exceeds demand prices must come down. haidi: great to chat with you. founder and ceo of autumn mobility limited coming to us

from shanghai. global sales of passenger ev's -- let's get more from our aipac transport lead analyst. we have just been talking about just of the human that is chinese automakers -- the behemoth that is chinese automakers. particularly seen to dominate emerging economies. >> thank you for the question. car markets in emerging asian economies like southeast asia and india have historically been dominated by japanese automakers. as the governments in these economies have started looking at promoting the option it has opened up an opportunity for many of these chinese automakers to target some of these emerging asian economies. in india in 2022 about 11% of all passenger battery sales have

been from chinese automakers including byd and mg motor. about 78% of the sales in indonesia and in thailand in 2022 chinese automakers including byd, mg motor, and grave all motor. the marketing is still small compared to the global market size. it is growing quickly. these chinese automakers are the many of these markets are able to garner a larger market share than they are able to in the overall markets in these regions. kathleen: how are these automakers influencing ev adoption in newer markets? >> electric adoption in some of

these emerging economies is still low. in india and southeast asia, about 100,000 electric vehicles were sold in 2022 compared to the global volume of 10 million vehicles. sales of these markets are growing quickly. sales in these two markets tripled in 2022 compared to 2021. we expect sales to increase by another 40% to over 140 thousand units in 2023 in these markets combined. a large portion of the sales is coming from the increasing availability of affordable electric vehicle models. several of these affordable electric vehicle models are being introduced by chinese automakers i mentioned previously. to give you a few examples, these companies are planning to expand significantly in these markets. byd plans to increase the sales of electric vehicles in markets like india and thailand by 15 to 20 times and 2023 compared 2022.

they are building a manufacturing facility in thailand with the capacity to produce 150,000 vehicles. there are also -- there are also opportunities to invest in markets like vietnam, the philippines and indonesia similarly. automakers like mg motors is planning on investing in these markets. they already have existing ev assembly facilities. in these markets like india and southeast asia and they are planning to expand as well. what this means is there able to help ev adoption in these markets which have been laggards in ev adoption compared to the global markets. kathleen: we transport analyst allen tom abraham. play more to come on asia. this is bberg. ♪

go. go scientist. go software. go cure. go production. go faster and safer. emerson automation software helps breakthrough medicines get to market at warp speed. go human go. go boldly. emerson. haidi: centaur's new ceo has become the first woman to lead a list the japanese company with a market cap above ¥1 trillion. she told us how increasing female leadership can drive innovation in traditionally male corporate japan. >> the diversified employees including women makes the organization stronger. our company is working very hard to increase number of women in

the leaders position because i think diversity, i believe diversity generates an ovation, new mindset, new way of working and that we will enhance the competitive power of our company. >> after you were appointed to ceo, what are things you want to do to promote more women coming to the managerial position? >> there are three important things. one as japanese government's support in the system so female workers can easily continue to work or continue to accumulate their carrier while taking care of that -- their career all taking care of their kids. the second is the female worker's mindset. sometimes they gave up their career because of the difficulties in continuing both the work and life, their private

life. of course they don't need to give up their career. they can get support from their family or colleagues or managers as well. the third one is the male side. their husbands or their managers. still in japan i think we have an unconscious bias on the male side. they need to offer or they need to give female workers the same level of stretching roles, stretching challenges as they give to male workers. >> on the other hand, some male workers even think because japan has a 30% goal for promoting women into managerial role so it is creating a new and equality

for mill employees. how which -- for mill employees. how would you reply to this sort of thinking? >> if we think the number of employees in the company, almost 50-50. may be the first stage. then 30% of the managers, female managers is still not equal. still i think we are on the way to move up to the equal level because i think there is no difference in the capability or the expertise or experience between male and female. >> after you become president, what goal will you have set for yourself? what sort of thing do you want to achieve during your tenure? >> i want to make our company truly global company. during the covid situation, of

course we have seen a lot of difficulties but still we could grow the business. after covid-19, i think we can -- what we need to move this company to the next stage. kathleen: market open in seoul and tokyo are next. this is bloomberg. ♪

the first time your sales reached 100k with godaddy was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest transaction fees and keep more of what you make. start saving today at godaddy.com

>> this is daybreak: asia counting down to asia's major

market open as well. first citizens up 50% after it buys silicon valley bank, u.s. stocks rally, bonds have a big, big, big sellout. >> we are also watching the world of crypto further, release pressure coming down as binance and ceo -- finances ceo sued for sharing compliant practices. we continue to see a lot of naked -- negativity when it comes to that sector. we go to that market open and we want to see whether there is any rest by. >> that is the big question for investors is the worst of the banking term behind us, but perhaps we did get a bit of an answer. the treasury big move certainly coming at the front end of the treasury yields, pulling back from their lowest level of the year, and it came down to the -- dashcam have those two-year lows.

paring at more than 1.5% of a drop now since the collapse of svb. an increase for the longer duration dipped but it certainly helps to flatten that yield curve. you can see that. a couple we -- weeks ago that was more than 111 basis points of difference between the two is the tents. now they have been putting pressure on the yen today, it is just fractionally stronger, but it was down .8 of a percent against the greenback, that could support general japanese stocks, and we do see the nikkei coming online. based on what was happening in the banking system -- sector in particular, we saw that there was a bit of a pop at the open. let's change over now, because the flipside of this is when you see those moves and yields, and negative for the tech sector. and we did see the nasdaq in the intraday session snapping a

two-week advance. features they're looking a little bit higher, but largely in line with what we are seeing with the broader index. korean won is still close to that 1300 level. it is a little bit from her this morning and perhaps does tell us this slight risk sentiment that has been coming back into the markets. let's take a look at how australia is trading one hour into the session, a lot of the focus here coming down to what we are seeing in the energy sector, a breaker coming online, fairly flat but it did yesterday see the biggest rally since october. a lot of supplied fears coming into the market with disruptions in turkey adding to that as well. >> let's bring on our guest, who says he is still on equities over fixed income, with michael here. it sounds like you have a great deal of skepticism about a lot of the things that have come

over the past few weeks, perhaps, honestly, what impacts your outlook? >> the russia since -- the recession call has been rising, but it is not a foregone conclusion. and i think it will defend on the fed -- depend on the fed. and the fed will manage the delicate balancing act. we could see a hike and then a pause, which could avoid a recession but most probably stabilizing and boosting equity markets and intricate there will give a boost to pressures under crisis. >> we have seen so much of what has happened, the new normal post cheap money. we have a story looking at the opacity of layers of leverage that have built up. at the other end of this do you see better investment opportunities, health or -- healthier investment

opportunities? >> i would agree with that, because if you think about it previously during the qb area, the era of cheap money we had asset price inflation before we had consumer price inflation. at least there will be more disciplined investment going forward. >> we will have to come back to your gold call, because if gold -- you said it could get as high as $5,000 an ounce. it seems to me that would be supporting the view of a very inflationary environment, right? and if the environment stays like that, it seems like there is little chance you will get one and done from the fed. >> i think it also has to do with the new geopolitical world we live in, and to paraphrase jpm -- jp morgan, gold is money and everything else is credit. and i think credit has reminded

people that that's true. we need an asset that is nobody else's liability, and whether that is central bank purchases, there has been a strong trend globally that banks around the world have started to d dollar rise, and investing gold. >> and you are in on gold mining stocks and gold mining etf's, and you expect geopolitical events to back that up. would you give us a part of the world or a couple of things that you are more or less betting on happening that will be behind this kind of a move? >> i think what is very important to watch is that increasingly closer relationship between the russian federation and china. and also how that could change the oil markets, and the recent of elements with iran and saudi arabia and how that could change

the dollar-oil relationship. that to some extent is the flipside of the goldie question. gold as a reserve asset could meaningfully rerate, whether it gets to 5000 even -- or even more, needs to be seen. we could see a more meaningful re-rating of the price of gold. >> you talk about the fear mongering as an aspect of the jew political tensions, particularly when it comes to china. the issues around taiwan for example. does that mean you see opportunities to invest even it in the sensitive areas like test -- even in the sensitive areas like tech? >> if you ask you what i think is the biggest risk, the lack of diplomacy. -- the biggest risk is a lot -- lack of diplomacy. ukrainian was a very difficult outcome, and i hope that meta- diplomacy can lead to better

outcomes. if you look at bloomberg day -- data, the taiwanese stock market is among the best performing markets in the world despite the negative news and potential concerns that some investors might have with regards to the political situation or the threat of military conflict. >> we have a look at bloomberg data that's for sure. michael weiss. let's get to annabel for the latest movers. energy stocks. >> we just, under 10 minutes into the session now for japan and -- are taking a sectors at the best -- look at the best-performing sectors. what we see in the energy spaces is that the index is up nearly 1%. why that is booming, we actually saw oil having its biggest daily rally since october, a lot of concerns around supply disruptions, particular in turkey, and that is adding to

concerns here for supplies on the market. then you have these fears of contagion from the banking sector, those are easing. these are some of the biggest energy producers in asia, and let's take a look at another sector we are focusing in on and that is what we are seeing in the crypto space. bitcoin broadly sliding back to around that 27,000 level, and a mixed outlook for some of the biggest crypto associated names here in this part of the world. binance is facing a civil complaint from the cftc, more details ahead. and finally a quick check for nintendo in the early moments of trade, this country is going to face short-term selling pressure, the reason that msnbc is saying that is because on the yen year on year and the lack of guidance for the fiscal year of 2034, leading to conservative initial estimates. we will be watching that throughout the day. >> keep an eye on that one.

let's get to you vonnie quinn -- vonnie quinn in the new -- they are. >> suspect in ames national school shooting had drawn a map of the building, including entry points. three children and three adults were killed. the attack was identified as the 28 former student, president biden has again called on congress to ban assault weapons. the israeli prime ministers says he will delay a controversial plan to weaken the judiciary following a day of unprecedented strikes and protests. he now seeks a compromise with opponents of the bill. his push to get politicians more power over the selection of high court judges has triggered one of the most sustained periods of civil unrest in the country's history. >> when there is an opportunity to avoid civil war through dialogue, as prime minister, and taking a timeout for dialogue.

i give a real opportunity for real dialogue. we insist on the need to bring about the necessary corrections in the legal system and we are given an opportunity to achieve abroad consensus. this is a worthy goal. >> south korean officials making an arrest -- a push to arrest this man. he faces charges including fraud, and breach of duty. he was detained in montenegro last week, both korea and the united states are seeking him on boards related to the collapse of multiple companies. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn, and this is bloomberg. >> still ahead, morgan stanley sees elevated risks ahead for the u.s. equity markets, we will hear from mike wilson, their top equity strategist later this hour. first citizens set to become one

of the top 15 u.s. banks following the acquisition of silicon valley bank. more details on that in just a moment. this is bloomberg. ♪ ♪ the new chase ink business premier card is made for people like sam who make...? ...everyday products... ...designed smarter. like a smart coffee grinder - that orders fresh beans for you. oh, genius! for more breakthroughs like that... ...i need a breakthrough card... like ours! with 2.5% cash back on purchases of $5,000 or more... plus unlimited 2% cash back on all other purchases! and with greater spending potential, sam can keep making smart ideas... ...a brilliant reality! the new ink business premier card from chase for business. make more of what's yours.

>> united states regulators have accused binance and its ceo of breaking derivatives roles as an allegation that the ceo called unexpected and disappointing. we have the data now and this follows a lot of regulatory pressure from other jurisdictions. >> it has really been a focus we have been having over the past couple of weeks, enforcement through regulators with these sorts of actions, which means from the sec so far. but this one comes from the ec attached -- c.t.s. e, and it boils down to a civil complaint and the allegation is that

binance and its head bank routinely broke american derivatives roles and that was in order to push to become the world's biggest trading platform. the cftc is saying that they should have registered with the agency year ago and they continue to violate the rules. that's coming from the chief counsel saying that defendants own email reflect that compliance efforts have been a sham and binance chose over and over again to place profits over following the law. >> so the response from binance? >> the response so far from binance, they have put out a statement on their website, it is reasonably likely but essentially saying that the actions from the cftc that they not only are unexpected but disappointing. binance is promising to give a lengthier response in due course, but the headlines coming from that is that they don't

agree with the characterization of many of the issues in the complaint. they say they have developed best in class cap -- technology to ensure compliance and transparency, and they hold the highest number of licenses and registrations globally. just to talk about the likely outcomes from this. the cftc is a civil government agency so it is important to know they cannot bring criminal charges or see jail time, but in some cases their complaints can lead to big penalties or fines for companies and also for individuals. >> annabelle droulers. fears of contagion seem poised to ease in the united states, and in asia we take a look at first citizens bank buying silicon valley bank. this transformed it into one of the top united states, top 15 banks. >> there were advantageous conditions that the ferc provided to facilitate this

acquisition. we saw that investors certainly embraced of the deal in an increase in the stock that rallied betty than 50% and that actually has positive implications for the ftse, the regulator as well. of course, the collapse of silicon valley bank, the biggest collapse since 2008, and in terms of the acquisition for citizens, they assume $56 billion in deposits, and purchases of 72 billion in loans. that deal also includes a discount of about 16 and a half billion dollars as mentioned. had favorable terms. and the fbi see is estimating that the cost to that insurance fund that ensures deposits will be 21 billion dollars, although they allowed to the fbi see some equity rights in that. it does get a share of the increase in that stock. so it doesn't stand to gain and

may already be -- in some sessions and moments on monday in the united states, it was as we call in the money. so the equity appreciation rights really appear to be on track and have positive benefits. you can see that regional banks got a very big increase, about 3% overall, most banks in the s&p 500 were about 1% on average. so far positive in terms of the weight the market is receiving it. -- way the market is receiving it. >> the postmortem continues, we are looking at an investigation into svb and signature, and what was perhaps behind those failures from a decision-making perspective. >> regulators launching investigations into the two failed to united states regional banks, signature in new york which was crypto focused and silicon valley bank are svb, which had an intense and very concentrated focus in tech and venture capital firms.

the fdic chairman and the chairman of supervision were quick to assure the general public on the financial system being sound, but in terms of the management of these two banks, they did not means words. -- mince words. they said it is worth noting that these two banks were allowed to fail. he called it a textbook case of mismanagement. saying the concentrated business model in those tech firms and the failure to manage the risk of the liabilities and the significant decline in asset and deposit growth. and also waiting too long to address these issues, and the irony, they point out, it's in the duration mismatch. svb had invested its proceeds in long-term securities to boost yield and inflate or increase profits, but they did not manage the risk as interest rates

rapidly increased because of the fed and ironically they point out it was only when they announced the loss because they were selling the longer-dated securities to pay for the deposits that were leaving that there was a run on the bank. a lot of people will be watching very closely as these two reports are completed, these investigations, we are told the highest levels of management, the directors and the bank presidents will be held accountable. back to you. >> su keenan there. you can also find around above the stories on daybreak, subscribers can find that on our website or the mobile app anywhere. you can always play around with those settings. you can get the news on the industries and asset classes that an impact -- matter most to you. this is bloomberg. ♪

>> morgan stanley's chief equity strategist says that the turmoil has left the turmoil has left earnings outlooks too high, putting stock marks at risk of sharp decline. we talked to him about how it plays out from here. >> last year we saw a pretty big degradation in multiples but as we pointed out again today, all of that was due to higher interest rates. none of it was due to higher risk premiums, which was part of the multiple that is bracing and what growth is going to be. i would push back on the first -- pushback which is that the market is starting to revalue or devalue what i would say the companies that are most at risk, the missing estimates that he mentioned earlier, lower quality companies, more cyclical companies with slower -- smaller

companies at will have to harder time. so it is happening, it just takes a little bit longer, and everybody focuses on the s&p 500, or maybe nasdaq, as these kind of and that is true. >> let's talk about with -- repricing. it has been in the opposite direction, and meta-and facebook shares what the 71% so far, apple shares up more than 21 percent. basically pick your poison, and it is up to medically. how do you pushback against this, against the cap -- recoveries that would come under pressure in a higher rate world? >> these company took the punishment last year because they were the tip of the spear when rates went up they took it first and a lot of those groups

or stocks or sectors that they are in are in a recession already, you could argue. that is the area we are seeing layoffs, that is where we are seeing retrenchment on cost. and i think the thing now is to have those companies cut costs and have begun in front of it -- having they gotten in front of it to see earning routes again. that is our view, it will be more cost-cutting in that space because the investment was so egregious and the overturning was even worse. it will be a trip. mike suspicion, we figured this out ahead of the bond market come down, and because it repriced itself overnight, think that the risk for the equity market is elevated now. >> you have been labeled a bear, and i know what that is, and everybody thinks what you say is perishing i. even when you do get constructive, are there any areas that have sufficiently repriced, we are seeing to --

seeing opportunity? >> a lot of these copies will have problems, with some of these. i think i would just point out that financials do leave the overall market, that is one area for sure. certainly consumer areas have been repricing for years. we just added to our retailer, there are definitely areas, they go through this rolling bear market. we have, kind of, come up with that view a few years ago. people use that. that is the way it worked, and we are looking for opportunities now at the stock level, but at the index level it just does not look attractive to us. >> to achieve equity strategist mike wilson speaking with lisa abramowicz. now a quick check with the business flash headlines. while disney has begun the first -- round of what is expect to be

7000 job cuts, part of a saving drive announced in figure. the first group of employees will be notified over the next four days for the second round impacting several thousand workers will happen in april. the last of the workers will receive notice before summer. saudi aramco buying a stake in a china refining giant in its biggest ever acquisition. the deal is the second in two days, boosting exports to china. it promises to shift almost 7000 additional barrels a day to china. soon tori's ceo is attempting to capitalize on consumer changes after covered. she says she wants to make deals worth $5.4 billion over the next few years. ono became the first female ceo of illicit japanese company with a -- a listed japanese company worth more than ¥1 trillion.

>> we are working very hard to increase the number of women in the leaders position, because i think diversity, i believe diversity generates innovation, a new mindset, at a new way of working, and we will enhance the competitive power of our company. >> let's take a look at the features in europe opening this morning. we saw european stocks -- stocks joining the global recovery. we see futures up by 3/10 of 1%, we also see that pullback across treasuries and other global safe havens as we get a little bit more risky returning to the stable. mostly trading pretty steady at this point, a little bit of weakness in the greenback. we will also be watching sbc

holdings. we did hear from australia ceo talking about the great sense that was made of the acquisition of sbc. -- hsbc and their business within the eu. coming up next, we take a look at ebay's and china's rising market. it may provide a 450% increase in income when they release earnings on tuesday. we have the preview coming up as well, as well as how, potentially, this plays out for this major player. this is bloomberg. everything's changing so quickly. before the xfinity 10g network, 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.

>> take a look at sales numbers just out of australia at the moment. we are seeing numbers month on

month, with a gain of 2.1%, certainly moderating from the 1.9 percent that way so and for very. obviously some seasonality given that we do have a lot of the peak christmas and sale season going on as well. but there is certainly this concern that we are seeing weakness when it comes to's consumer sentiment, weakness when it comes to willingness to spend as cost-of-living pressures continue to build after this cycle from the rba. there are expectations that the rba will be pretty close, and posit this point. we see pretty much along expectations when it comes to retail sales, but interesting potentially will be that inflation number coming in on wednesday. let's take a look at how we are seeing markets play out this tuesday morning. >> the focus very much on the banking sector, whether we are past the worst of that now, and when we take a look at what is happening in the debt space this morning we are seeing those yields moving hike across the

board here and that was really following what we saw with the two year yield in the session given that this expectation for one for the rate hike from the fed gives -- came back into focus. we saw that two year yield starting to stabilize, but we seek that happening in the last half hour or so. that is leading to civilization and the dollar, likewise, that is trading fairly flat. we are looking range found in the asian currency space so far in the session. in terms of what else we are watching today, the focus very much as well on tech stocks in particular because they didn't sell off on the nasdaq in the prior day on wall street, stepping that today advance. they don't like rising yields but they are doing a little bit better as we get underway into asia today. what is really leading the advance is the energy sector in stocks today because that index is actually the biggest gain or but crude prices, they are just fairly stable, we saw concerns

about supply coming into focus. we saw that trading flat with its best session since october on monday. in terms of set up for the next session ahead, that will be the major market opening hong kong and mainland china and just over an hour from now we are asking what kind of those we are likely to see, we can see that mainland investors have really been picking up into hong kong stocks, they have been under pressure, not only really caught between these two factors, the question marks around the health of the financial system and then you can add to that the signals we are still getting around china's recovery and industrial profits for instance, the latest sign that reopening bounced still has a ways to go in china. -- bounce still has a way to go in china. >> the fdic's says its investigation into the conduct of managers at as phoebe and signature bank to determine what let's to the banks class.

the chairman told a committee that directors, officers and other parties will be held accountable. the vice chair for supervision called svb's failure the result of a textbook -- textbook failure of mismanagement. >> as the from group to beat the world's largest crypto trend platform. binance's own emails and check messages show its compliance efforts have been a sham. the ceo has called the complaint unexpected and disappointing writing that binance has comprehensive compliance systems. barclays has described the recent accusations of his relationship with jeffrey epstein as serious. barclays boss quit after it was found that he had underplayed his relationship with the pedophile financier.

global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn at this is bloomberg. heidi. -- and this is bloomberg. heidi. >> if the results coming in line with the top end of parliament are estimates, there would be an increase of more than 450% from last year, let's bring in emma o'brien here, and we note that the backdrop is a burgeoning price war in china as well as the recovery of the consumerist ongoing. so what does it look like? >> we know they will report some significant earnings from the primary guidance that we already have, that huge increase that you talked about. 22 -- 2022 was a good year for them. that is where they saw a lot of expansion globally. but as you said there are storm clouds on the horizon, so we will be looking very closely at the forecast and what they do say about this price war that is very much onto -- underway in china. >> emme, what else are you

looking at, one of the things that fascinates me are these electronic vehicles, one area that they are dominating right now. >> byd has made a commitment to go fully new energy, whether that is electric or hybrid or other sources, they are moving very definitively away from the combustion engine, which makes them quite a competitor for tesla, particularly given their global ambitions. and that will be something i will be looking at very closely, if they talk about other markets that they want to get into, 2022 saw them get into australia, looking at japan, other places in latin america, they are in europe, getting quite good traction there. where to next is this the eb company that will finally pick tesla in terms of electric vehicles sold locally. lots of interesting things to come out on the -- of the byd

earnings today and we will hear from the chairman and other members of the company in the press conference. >> emagin tesla, elon musk was the one who trichet this. this fundamentally market changing price war. christ it is interesting to see how different it is to other markets where you are seeing you know, a shortage of cars, some prices have been going up. china it's quite the reverse, there has been this deluge of companies both getting into electronic vehicles and producing them. a lot of lineups are being pushed out lately. and tesla came to play, really. cutting their prices and you have seen some of the smaller ones have to go down as much as 50% into territory that is not going to look good for the bottom line. in an industry that is printed typically -- pretty difficult to survive in. you will see a bit of a clear out when it comes to ev makers

in china, with only those very strong ones, the byd is, tesla obviously, and some of the bigger names with the foreign companies for example, coming out on top of this one with a clear out of those smaller names. >> perhaps some consolidation in the plan. emma o'brien there as we look at byob's numbers a little bit later. coming up, s&p global takes a look at mobile shipping demand and made china's reopening and rising geopolitical complex. a discussion when it comes to supply chains coming up. this is bloomberg. ♪

the new chase ink business premier card is made for people like sam who make...? ...everyday products... ...designed smarter. like a smart coffee grinder - that orders fresh beans for you. oh, genius! for more breakthroughs like that... ...i need a breakthrough card... like ours! with 2.5% cash back on purchases of $5,000 or more... plus unlimited 2% cash back on all other purchases! and with greater spending potential, sam can keep making smart ideas... ...a brilliant reality! the new ink business premier card from chase for business. make more of what's yours.

>> we are seeing the impact in the fx section so far. this tuesday here in asia. we saw equities trading higher, heels also rising for treasuries following a little bit of a settling down when it came to the banking turmoil. we are seeing that weakness play out when it comes to the dollar yen at the moment although is not -- not as much haven yield. watching the aussie dollar coming along with estimates ahead of that inflation rate coming on wednesday. just a touch high as result retail sales. surprises of any kind, and we

are waiting for that key inflation data, if that comes through weaker we could see that holding pattern for the dollar if we see the rba leaning towards a whole. taking a look at the kiwi dollar we see an upside, about a quarter of 8%. the spot index is about -- down about a quarter of a percent, against pretty much all g10 peace. >> let's discuss the current state of the market. our next guest says the worst of the supply chain crisis is over, with normalization underway. rahul kapoor is the head of shipping analytics and research at s&p global. rahul, it's such an important topic. more and more, you know, surveys about it. you say it is definitely moving ahead, what are you looking at, what are the metrics that is

telling you it is in play now? >> thanks for having me. we were expecting supply chain normalization to start last year and it did start. but the basic speed of normalization is quite well ahead. you see that in the ocean container right back to pre-covert levels, on the board condition -- congestion levels as well and even on logistics and the u.s., things have been improving. i would just at that is because we -- of what we are seeing on the demand side. there has been supply-side improvement at certainly the supply chain crisis is behind us. >> a lot of talk about global recession risks, the trade numbers have not been so good. how much does that say about how much more to supply chains can and will improve? >> i would say the next two years will be tough. when you look at the freight rates, those are falling off 80% . there -- they are back to

pre-covert levels. if you look at los angeles and long beach, we used to have just a hundred vessels last year, and the demand is weakening even before they start coming in. we are expecting that to trend lower, there could be support in the second half of this year, but i think we will enter a tough year for the shipping container industry. >> has demand out of china disappointed, to some extent in the time would look at now -- we look at now? >> it has certainly been weaker than anticipated. we hear it from the container carriers themselves. the reopening has supported a bit, and they have not recovered that quickly. we are looking at china and we do expect that to continue in the second half of this year but as of today the reopening has disappointed -- disappointed. >> we heard from elon musk

saying that they are saving the start of sleep -- stabilization equilibrium. but they also preface that by saying they are seeing the demand coming from the weakness of manufacturing. this is continue to be the new normal -- does this continue to be the new normal? >> i would not say the new normal, but a lot of demand was brought forward. we will be giving back some of that. but we will see is the normal peak season, which is key for this year, is there normal peak season. there is still a significant de-stocking that is happening across the board with retailers running down and write fees. and then we see that stabilizing we are not expecting to see demand recovery. so i would say we demand for this year and going into next year as well. >> you do note that the whole question of global supply chains still has the question of geopolitical tensions hanging over it. which areas are you most worried

about, what are the odds of something else happening that will set all of this back? >> if you look back let's say at the last 10-15 years. you saw the global supply chains becoming highly integrated. but having said that, even today and last year, there is a supply concentration risk. these rising geopolitical conflicts, what we saw earlier, had given rise to a lot of talk of china's strategy. but if you go deeper into the data, we have not seen that. china is still the largest provider of the u.s.. we seek shipping to india, but we call this the chinese export powerhouse, and we are very concerned with the supply chain concentration risks. >> what does this mean for the various constant -- companies in

this imagery, they have a lot of ups and then they have big downs, will happen next for them -- what will happen next for them? >> i think 2020 you -- really 22 -- 2022 was the peak year. when we get back to what we would call normal rates, mirror rate -- mirroring the globalization's, we expect the supply to grow 27% annually for the next two years. that is very toxic for certain markets, and we expect earnings to go back to normal and we saw the -- and lose the record profits we saw over the last two years. >> rahul kapoor, head of shipping analytics and research at s&p global. >> -- it is a market that could going to be 1.7 trillion dollars, but when it comes to private pension plans, global firms may struggle to get a slice of that pie.

asian has ensured that domestic banks and fund managers when the vast majority of new business, what is the reality check for four -- four and asset as part of the new global pension market? >> i think the market is a commission of an this opportunity but also roadblocks, regulatory roadblocks and competition. we keep hearing how the pension market will grow to $1.7 trillion, the reality is the global asset managers are off to a slow start and that is the reason -- for a combination of reasons including rent recognition but also dissolution channels. if you look at the ne-yo pension trial we are seeing for the third pillar, 23 banks that have been included that allow local citizens to open those accounts are all domestic banks, and the lack of convenience for foreign

asset managers can distribute their products directly to the chinese buyers, and that is a great challenge for these banks to have a larger share of the pie. >> why is china pushing ahead with these reforms? >> long-term, it is a thing that needs to happen, china's pension program, the savings program run by the government for urban employees, could likely run out by 2032 according to analysts. if you look by the aging population by 2040, they expect that tony percent of the population is going to be over 28. will be over -- over 60 years old. it is something that the government needs to start performing and look into. that said, for the global asset managers who want to tap into the space this will be a long-term investment, it will not turn around and start generating profit like tomorrow. so, for asset managers, we have

vuard already retreating from the market because i think it is a huge commitment if they really want to see those payoffs coming in the future. >> lulu chen, who leads asian vesting for bloomberg news. be sure to tune into bloomberg radio to hear more from the big newsmakers and get in-depth analysis from the daybreak team broadcasting live from your studio in hong kong. you can see that on the screen. there's plenty more ahead, stay with us. ♪ and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness

it's easy to make your home an a check out angi.com today. angi... and done.

>> a quick check of the latest headlines. firstenergy has named a new ceo, its fourth leader in three years. the giant tries to move past a corruption scandal tied to the passage of an ohio nuclear subsidy bill in 2019. the new ceo will join june 1, and was formerly global head of portfolio operations for their infrastructure group. hotels are said to be producing their size in order to get the sale done after tech evaluations plans. they plan to sell just a third of the new shares originally

planned. this marks the second attempt at the softbank starter, india's stock record later rates multiple red flags on this last effort. shares in australian lithium in-line town rejected a $3.7 million takeover effort. attorneys company had offered to take over entirely, and the lithium mine is expanding output and facilities to meet long-term demand for electronically the batteries. deutsche bank has sold for $350 million, a u.k. private equity firm partnered to buy winchester house which they plan to refurbish. deutsche bank will move to new head -- headquarters in the city of london this year. >> kim jong-un has reportedly been briefed on the country's nuclear weapon production status.

the korean central news agency says he has called for more nuclear weapons days after pyongyang conducted another underwater strategic weapon system test and a tactical ballistic missile -- missile test. despite showing up the threats, some defectors now want to go back to one of the world's most repressive regimes. we find i i in this report. -- find out why in this report. >> i haven't cried because i miss the family i left behind. -- i often cried because i missed the family i left behind. >> she came to south korea for a better life. she took a life-threatening 3000 mile journey to escape from of -- one of the world's most oppressive regimes. yet now she wants to go back. almost one in five defectors who left between 2017 and 2019 said they regretted coming to south korea.

but there are also thousands who have adjusted well to their new lives after escaping a regime in pyongyang criticized roundly for having one of the world's worst records on human rights. >> to better help with the social integration process, south korea has built settlements and settlement support centers like this one. >> this is a place where north korean refugees who come to south korea for the first time receive social education and receive settlement support before heading to their place of residence. we provide 400 hours of training here. >> some defectors communities ask for more grassroots support. >> most of the defectors like education. it is difficult to fit into rapidly developing suit -- korean society. one way to help them might be upping them to provide simple

jobs like some food on the street. >> the biggest challenge for these women, especially single mothers, is overcoming psychological trauma. >> i have been taking antidepressants for years. >> a 2020 to survey shows that defectors have experienced suicidal impulses at a rate more than doubled the south korean population. [speaking foreign language] >> sometimes i think i should not have come here. defectors trying to keep -- try to get a job at the company, but cannot because of an accident. a lot of north koreans don't know how to use a computer and we get cumulated for that. >> i think there is -- if the majority were able to hear the stories of these people, the attitude would change towards them. >> watching ahead of markets open -- opening in hong kong and china in the next hour, could

the shares may move after the trade commission sued binance for allegedly breaking training -- trading and deliberate -- traveler -- derivative rules. supply disruptions in turkey because it a huge jump, and china's oilfield services could see a move as well. that is just about it for daybreak asia, our markets coverage continues. we look ahead to the start of coverage in china and hong kong,. this is bloomberg. ♪

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 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™.