our thanks to stephen engle. breaking news, an update with credit suisse as they are dealing with the fallout from the rko's -- archegos hit. this comes after a prominent investors indicated they would be voting him out. more shakeup after the meltdown from archegos capital. the julius baer ceo, thanks for joining. i know you got to listen to what stephen engle was outlining. you see the risks from asia given what is going on with the crackdown in the technology space. does this where you about investments in china and hong kong, or is this potentially a buying opportunity? >> we think it is a buy opportunity because sentiment has become very negative in the wake of regulatory steps. we are concerned about the long-term consequences. essentially, what they are doing here will cap the upside potential and the valuation potential of such companies in the market. one of the reasons to be strategically about china is outside the u.s. it is the market where you are supplying to companies. have a track record of buildi

chief north asian correspondent, stephen engle.tune in to bloomberg radio now broadcasting live from the studio in hong kong. you can listen via the app radio plus, or bloombergradio.com. stay with us. kathleen: time for morning calls ahead of the asia trading day with sophie kamaruddin in hong kong. what is on your radar screen now ? sophie: citigroup saying they might see further to go in the dollar strength and that would be a hurdle for global equities. the rebound could take the edge off the stronger dollar. stocks are seen underperforming. this is msci gauge under pressure. we have seen developing nation currencies and bonds on the back foot, pushing the first quarterly declined in a year. morgan stanley said -- staying bearish. vaccines also a pressure point. kathleen: thank you. now for a quick check of business flash headlines. credit suisse is discussing replacing the chief officer after a string of miscues that led to losses potentially worth billions of dollars. the bank is expected to give the update on exposure to cap

stephen engle is taking a closer look at this. what do we know? n: the uncertain future has whipsawed its overseas bonds and really cast a lot of doubt on this looming debt restructuring. that has raised a lot of questions about whether there could be a fighting -- financial contagion in china. also strikes fear about whether the states implicit guarantees for state owned enterprises in the financial sector are holding true. what this would be, according to sources, is a significant show of government support. obviously, if the pboc is coming in with funds, people familiar with the situation saying china is considering a plan that would see the pboc assume more than 100 billion yuan's of assets from china asset management. bloomberg news reported earlier that it was considering restructuring plans that would see it offload a number of its unprofitable or non-core businesses. this plan by the pboc, which is still being consid clean up the balance refocus the main business to its core business of managing distressed debt. the china banking and insura

paul: stephen engle.will be taking -- speaking to the hsbc cfo after we break those numbers in a few hours time. 2:40 p.m. in sydney, 12:40 p.m. in hong kong. let's get a quick check of the latest business headlines. citigroup says it has declined 11 transactions related to call powell lining -- mining coal powered mining. it helps to divest by 2030. in its annual esg statement, it will stop declining -- financing those who get 20% of their power more from coal plants. jp morgan started a bitcoin fund. the latest signed -- sign wall street might be warming to bitcoin. bitcoin roses much is 12% to monday to trade almost $34,000, the biggest intraday gain since february. lyft will sell self-driving subsidiary two's toyota. this is bloomberg. ♪ wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all th

stephen engle is joining us from hong kong. what do we know about this latest move?> what we know is nobody can escape, at least in chinese big tech. the regulatory crackdown that is coming from beijing and the various regulatory body. this is interesting because it -- as the crackdown we saw on alibaba on the financial side. not just the antimonopoly push, but more targeting the systemic risk that the explosion into the financial services where there is wealth management, lending and the like has been posing. the risk that those services in under regular technology companies rather than banks have been posing on the chinese economy. 13 companies now in addition to and group have been summoned to a meeting with several of the watchdogs including the central bank, the city irc, the securities regulator and the forex regulator and regulator ae been told they need to restructure. -- gathering personal ids and these regulators said companies must to restructure financial holdings into a -- they must sever improper links between their existing services and financial servi

stephen engle joins us from hong kong with a closer look. what are we expecting?it is going to be some of the momentum that we got from the results which came out in february. we had first quarter results which will probably reemphasize a strategic reset, is how it's being surprised. cutting 35,000 jobs globally. 9000 were said to already be cut. they had $5.5 billion earmarked in savings. cost savings that they are looking at right now. we are seeing signs that that process is credible, and is achievable, quickly. at this low interest rate environment, the key leverage will be net interest income. a key figure is 6.5 billion dollars. you can see up and down from that. that is where we will judge where they need to gain elsewhere, in noninterest and fee generating income revenue. that, combined with the cost-saving measures. the full-year results did say, we had a good start to 2021. i am cautiously optimistic for the year ahead. again, it is tough coming off of what has been some restructuring at the bank. again, they are looking for higher earning areas, like as

paul: with us now is our chief asian correspondent, stephen engle, host of the new show "red line." e still many unknowns with china's regulatory crackdown on big tech. for example, how far will authorities go in reining in national champions of technology? stephen: alibaba is perhaps the first to be targeted, but others are already in the crosshairs, including, of course, tencent, and alibaba's phone financial unit, amt group -- ant group. we still do not have clarity on when that will be resurrected if at all and what the valuation would be. it seems like a pipe dream now given the fact that it could be folded into a holding company with oversight by the pboc and other companies, so there are many questions deal to be answered. i mentioned in that report that alibaba is not in the clear. it has to rectify what the government claims to be its anticompetitive behavior, so that will affect short and medium-term strategy, and then there's other questions as well -- does the chinese government feel that alibaba has grown to influential with its media holdings? it has a sizable stake in

let's have more with stephen engle in hong kong.s looks like a sigh of relief for investors, doesn't it? we are surging when we look at alibaba and hong kong. >> worst-case scenario, much worse. they could have been forced to divest some of their purchases and key assets. there could have been some breakup. keep in mind, we don't have closure or clarity on ant group which got kicked off in late october and early november when regulators scrapped that big mega listing, 35 billion dollars plus in shanghai and hong kong, because of, you know, irregularities. we don't have that clarity yet. this is more on e-commerce monopolistic behaviors by alibaba, the parent company. the cofounder and vice chairman says, you know, we are eager to move on beyond this. they are going to get that big slap on the wrist, $2.8 billion. it equates to 4% of 2019 domestic revenue and could have been worse. a chinese law would have allowed upwards of 10% of domestic revenue so it was, you know, more than -- less than half of that. that's good news. that's why

emily: watch more as stephen engle explores how far china will go raining in national tech champions. and big tech tonight it :00 p.m. eastern and saturday morning in london and hong kong, very important coverage. . does it for this edition of "bloomberg technology." next week, we cover tesla, alphabet, amd, apple, twitter, amazon come out with results. we have conversations with executives, analysts and more next week here on "bloomberg technology." i'm emily chang and things for watching, this is bloomberg. ♪ -- thanks for watching. this is bloomberg. ♪ [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. ♪ ♪ the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count o

our correspondent stephen engle takes a closer look at how china's so-called bat companies -- baidu,baba, and tencent, had flown under the regulatory radar. >> companies like us invest 50% of our total revenue every year to do r&d. i think the government likes that. in the meanwhile, i think that antitrust is also good for innovation. you just cannot imagine the number one and number two guy all of a sudden emerge and gaining more than 90% of market share in the u.s., but that has happened quite a few times in china. that is not good for innovation. i think the antitrust approach is kind of justified. >> one way the b.a.t. biggies grew their girth is by sometimes cross investing in the same start. it is obviously further inflated. arguments could be made on both sides whether the m&a closed off or cracked open competition. >> you can say the other guys are doing it and if i don't do it, then i am a competitive disadvantage. i think some measures to at least make the ground clearer will certainly be helpful to us, us meaning vc's who invest in early stage technologies. that, quite fri

stephen engle, are chief north asia correspondent. let's get over to vonnie quinn with the first word headlines. vonnie: thank you. brazils hospitals are struggling to cope with the crush of covid-19 patients as the nation gets hit by a more contagion's variant. the country reported more than 93,000 cases in a 24 hour period over the weekend. it's more than 3600 deaths. that has taken the total death toll in brazil above 350,000 people. health officials have warned the outbreak is at a critical stage but the president reiterated his opposition to lockdowns in a video released saturday. highlands local covid-19 cases hit a new record, threatening to derail the nation's plan to welcome back tourists. health officials say daily infection surged to 789. that brings tylan's total cases -- tylan's total cases to 31,000. philippines president relaxed a lockdown in the manila area. people are are required to stay at home but more businesses will be allowed to operate. china's cdc has admitted that the country's vaccine do not offer a high pro

haidi: that was the ceo of hoshino speaking with our correspondent stephen engle.rgency measures may have to be expanded. we are counting down to the olympics. could it affect tokyo? >> absolutely occurred, and as we are coming out of the story from hoshino-san, they close down in the otamachi district of tokyo. foreign visitors are not coming in, and the pandemic is affecting core cities. osaka and other major cities are going into partial restrictions and lockdowns as of today, because of the new wave that is sweeping across for the pandemic in japan. so this is going to hurt companies, like properties, hotels that hoshino-san operates, because people have been traveling domestically, and that is going to be severely hindered with these new restrictions. in the prime minister suga, speaking on fuji tv last night, asked about whether the locked on restrictions coming into place in osaka and drowning areas today, would they be extended -- and surrounding areas today, would they be extended to tokyo? he said, all possibilities are being considered. one possibility i

stephen engle has been covering the story and has more. context that we have seen the preliminary numbers, what are you seeing now? stephen: we got those per luminary numbers on april 6. three weeks later, they are fairly confirming those numbers. higher than estimates. the third quarter consolidated net income. the first quarter was better than the earlier guidance from late last year that samsung gave. they thought there would be a dip in the first quarter. the global recovery from the pandemic is going stronger-than-expected. prices have rallied. we were looking at the possibility of a memory trip gross marvin improving -- margin improving after rising through 2020 as more servers were built and more people upgraded their phones. they needed memory. we may need to see more guidance on those prices. lcd panels have been doing well for samsung. their premium smartphones has driven the smartphone handset division. the s 21 outsold its predecessor to the one in the first six weeks since it launched. it's been a hot seller for samsung. trip

haslinda: [laughter] putting things in perspective, stephen engle. let's get first one is with the vonnie quinn. vonnie: the u.s. secretary of state is where china against encouraging -- encroaching on taiwan. antony blinken voiced concerns about beijing's aggressive actions in the taiwan strait saying the west end by commitment to ensure independence. this after departments released on official statement some cut with someone. david cameron has defended his efforts -- cameron has helped -- and is ministers came under fire for jabbing the company. cameron lobbied officials to give the company access to funds from britain's pandemic support program. japan has just made golfing history. 29-year-old muncie, has become -- moved to llama -- mutsayama earned the coveted green jacket by earning tentative far. his victory is the first major title for him. 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. i am vonnie quinn. this is bloomberg. haslinda: still ahead on blo

haidi: stephen engle, our chief north asia correspondent. let's turn to vonnie quinn. >> the indian prime minister's party appears to be trailing in exit polls in a handful of key state elections. polling indicates voters in the battleground state of west bengal plan to hand the victory to one of modi's main challenges. the elections are seen as a barometer of modi's popularity. germany, france, and other european parliaments are looking to curb travel from india. there is no concern of possible coronavirus variants -- now concern of possible coronavirus variants in india. the united kingdom might add the u.s. to its proposed green list of countries as part of a plan to gradually reopen its borders. the head of london heathrow says progress on covid-19 vaccinations in both countries creates the possibility. singapore, hong kong, and parts of the caribbean are also being considered. singapore's mayor says the city is hoping to fully reopen by july 1. mayor bill de blasio says people from all over the country are going to flock to the city thi

haidi: stephen engle in hong kong. you can turn to your bloomberg for more on the address. let's get you to vonnie quinn in the meantime with the headlines. vonnie: secretary of state antony blinken has warned that the u.s. has fallen behind china to shape a green future. he said the u.s. needs to seize opportunities created by climate change to export american values. he pointed out china's dominance and green energy production. >> china is the largest producer and exporter of solar panels, batteries, and electric vehicles. it holds nearly a third of the world renewable energy packets. if we don't catch up, we will miss the chance to shape the climate future in a way that reflects our interests and values and we will lose out on countless jobs for the american people. vonnie: the philippine president says challenging china in this china -- in the south china sea would lead to violence and would only do so of beijing drills for oil there. it was the first on the issue since chinese vessels responded to a contested regi

let's go to stephen engle. steve, what do we know about namura's transactions? ephen: we know that christopher wilcox has his work cut out for him. another stumble for nomura as it tries to take on more global risk. as the japan market slows down. nomura has always had conditions -- ambitions to be a big wall street player. nomura has indicated they could take -- on a transaction. bloomberg news has reported that that is exposure which would be number two behind the big loss from credit suisse. it is a black mark but at the same time it will be a good set of numbers. it is interesting that in this fallout, they do name a new u.s. head. christopher wilcox has the expertise to navigate in the world chart in the united states. the previous head of j.p. morgan asset management and spent 15 years at citibank. a little bit of a black tie in what should have been a good set of numbers on what will likely still be a good set of numbers. >> take us through that good set of numbers. stephen: the first nine months they already hit 120% of the consensus estimate for that inc

stephen engle is in hong kong taking a closer look. steve, what do we know? >> no one can really escape this top of a regulatory crackdown. we are seeing that overnight on the stock market and the opening bell here in hong kong with big names in technology who are listed here all going lower, tencent has now caught up, down about 1.5%, alibaba down 2.8%, baidu with local shares down 2.6%, quite show -- essentially what we are learning as that of course, in addition to what we have seen with alibaba and their competitors and the monopoly in the crackdown on the requirement that it is folded into a holding company, we are seeing 13 other companies land of the top of that list. tiktok's parents are included. baidu, trip.com, these are among the 13 companies whose top management were summoned by a whole slew of regulators in china including the central bank, the banking and insurance regulator, the securities regulator and the foreign regulator. beijing means business. they are basically telling these companies that their financial interests, financial arms of th

let's get to stephen engle and tell us a little bit about what has happened here, exactly.hink that steve has a few audio issues. we will try and get back to him. let's look at the business flash headlines with haslinda. haslinda: reporting better than expected profit for the first quarter. the supply of memberships to apple says are pretty profit rose to $1.2 billion. as tech companies stockpile for the mobile shortage. they planning to increase capex to meet demand. this is the largest ever digital currency by a company traded in tokyo. this is just over $58,000. including fees for 1700 tokens. this is like a strategy to protect shareholder value. softbank has used almost all of its $23 billion allocated for share buyback, raising its bull run. they bought over $20 billion worth of its own stock in the past year. bloomberg cap elation show the program a run out. the effort has more than doubled. the buybacks could be losing power. third-quarter sales rose 19% after seeing strong demand for cloud computing services and a good quarterly jump in pc shipments in over two deca

haslinda:hoshino resorts ceo is speaking exclusively to stephen engle.the show, our exclusive with mr. rama. we discussed the pandemic, container shortages, and get his outlook for 2021. this is bloomberg. ♪ rishaad: -- weighing changes in response to the collapse of our take us. we have bloomberg learning chief risk officer said to be replaced. david scanlan joins us. tell us more about this potential shakeup? >> it seems like when there is a problem in the world with credit losses credit suisse is in the thick of it. it does feel like there is looking at a very serious change at the top level. they had just gotten over the greenseal debacle and now they are in the midst of artegos. the focused -- focus seems to be on laura warner. this is a risk issue. it has gotten away from them and so we are expecting in the next days and weeks there may well be a change. haslinda: however these scandals affected the bank's outlook? >> it really has an impact. if you look at the start, just last week it was down 18%, the worst week for credit suisse since march of l

let's talk to stephen engle, steve? >> we have covered this very extensively.t to bring in our next guest, she joins us now from laguna beach california. good to see you as always. this is a multifaceted story with alibaba and ant. we've gotten some sort of clarity now and both of those situations after four months of regulatory uncertainty. let's tackle the alibaba story, which is probably more straightforward. a one-off big fine of $2.8 billion. you alluded to me that you think this is win-win for ballot -- for the government and alibaba? how so? junheng: for the private sector, i think as long as it is not recurring, investors will likely dismiss it. the government -- it is a big chunk of revenue. $2.7 billion. any thing and billions is considered to be a big chunk of income. they inserted their power in the private sector. meanwhile, they get a large stream of fines coming in. investors, it is a win-win situation. >> what do you still like about alibaba daca -- alibaba? the find itself does not necessarily change the competitive landscape. the list of recti

paul: our chief not asian correspondent stephen engle.'s have a look at what to expect when trading gets underway for the new week. let's get over to sophie and hong kong. sophie: looking for green shoots. nikkei futures pointing higher in singapore, this as tokyo began a state of emergency. s&p eme slightly lower, this after we saw the s&p index cap a weekly loss. in the commodity space, check out futures in singapore, topping 183. this tracks commodity currencies on the ongoing industrial metal boom. the wti fluctuating this morning, holding below $62 a barrel. this ahead of the opec-plus meeting this week. india's covid crisis complicates the picture for the crude cartel. pulling up a chart on the terminal, we have seen indian stocks pullback as infections search in the country. it fell below the 100 day line and is now lagging global peers, with indian stocks the worst performer in asia. with bond markets there is a prospect of more supply coming online, but appetites have been soft for indian bonds. shery: let's delve into the bond m

as part of a new bloomberg tv special, our chief north asia correspondent stephen engle looks at hownal pooling of data could have significant ramifications for user privacy and effect tech profitability. >> from a government standpoint, it is not in the interest to see tech companies become smaller and weaker. >> what leverage does jack ma have? >> the leverage lies in the cash-rich. they have a strong talent pool. they are very sophisticated. >> they have the data which the government probably wants as well. >> i would not disagree with that. >> a year and a half ago, china released a document codifying data as one of the core socialist factors of production. under the idea you must have a well regulated data market in order to maintain economic growth. this is the fundamental core operating principle that china will be using to regulate big tech over the next 10 years and it is something that has not entered the western lexicon. 3 the chinese government is said to be mulling a state backed joint venture with the large platform to oversee how their combined data is managed and shar

stephen engle takes a look at how quickly things have changed in a new bloomberg television special.preview. >> i think companies like ours, we invest more than 15% of our total revenue every year to do r&d. i think the government would like that. in the meanwhile, antitrust is also good for innovation. you just cannot imagine the number one and number two guy all of a sudden merge and gain more than 90% of market share in the u.s., but that happened quite a few times in china before. that is not good for innovation. i think the antitrust approach is justified. >> one way they grew is by pouring billions into many of china's next generation tech unicorns, sometimes even cross investing in the same startups. it obviously further inflated the big platform's offerings, but arguments could be made on both sides whether the m&a closed off or cracked off competition. >> if the other guys are doing it and i don't do it than i am in a competitive disadvantage, so i think some measures to at least make the ground rules clearer, that would certainly be helpful to us. us meaning vc's who invest

shery: stephen engle in hong kong with the latest on that forum. let's now get over to vonnie quinn with the first word headlines. >> u.s. secretary of state antony blinken has warned the u.s. is falling behind china in the race to shape the world's green future. speaking ahead of president biden's china summit later this week, he said the u.s. needs to seize opportunities created by climate change to create jobs and export american values. he also pointed out china's dominance in green energy production. >> china is the largest producer and exporter in solar panels. electric vehicles, wind turbines. it holds nearly one third of the world's renewable energy patents. we don't catch up, america will miss the chance to shape the world's climate future in a way that reflects our interest. and we will lose out on countless jobs for the american people. >> philippines president said that charging china and the south china sea would lead to violence, and he would only do so if beijing drills for oil. it was a mark on the issue since hundreds of chinese in

we spoke with the chief north asia correspondent, stephen engle. >> anyone who steps too far, if youat that chinese government promise to people in the 1980's saying we will eventually enjoy democracy and autonomy. hong kong people are just asking for very humble demands, to get the chinese government to do what they have promised. i think that is basic responsibility of the regime to its people. for hong kong people, this is always asking the humble demands. >> so, no mistakes were made, in hindsight? sulfur flexion? -- self reflection? >> in hindsight generally not the mistake of hong kong people. a lot can be explored. maybe a lot could not necessarily be done. >> in recent days i interviewed a number of senior people, pro-establishment, all reemphasized their point, that there were hands from abroad particularly the united states, that influence to this? and perhaps coaxed protesters on and also financially supported them? >> this is in the geopolitical interest of the america runs, america to do that and on the ground i see compatible evidence of such action. >> how do you respo

stephen engle joins us for more. what you saw in the problem -- the per limiter numbers, what are you expecting? stephen: these numbers will be coming out of seoul in the next hour or so, and they will be anticlimactic because they come out with those preliminary numbers three weeks ago on april 6. got a good idea of how they are conglomerate in their four main businesses were performing in the first quarter. earlier than that, samsung predicted there would be drop off, profit might be weaker in the first quarter. however, the global economy pickup was faster than anticipated. ps 21 galaxy series of smartphones was stronger than expected. the s 21 sold two 21, outsold its predecessor two to one in the first six weeks since its launch. prices picked up in the quarter. first-quarter numbers were pretty good. led by the as 21 that you see here. large lcd panels contributed, dram prices picked up in the first quarter, the foundry business did well on the global chip shortage. profits picked up 44% year-over-year in the po

he spoke with stephen engle. >> i don't think anyone pushed us too far. promise to hong kong people in the 1980's, saying we would eventually enjoy democracy and autonomy, and the hong kong people are just asking for humble demands, to get the chinese government to do what they have promised. i think that is the basic responsibility of the regime to its people, and for the hong kong people, it is only asking humble demands. stephen: no mistakes were made in hindsight? nathan: in hindsight -- in general, in our situation, a lot of strategies can be explored. maybe that could not necessarily be done. that does not mean let's blame the victim. stephen: i've interviewed a number of senior people, pro-establishment, all of them reemphasized the point that there were hands from abroad, particularly the united states, that influenced this. and perhaps coaxed the protesters on, and financially supported them. >> this is in the geopolitical interest of america to do that. on the ground, i see evidence of such action. stephen: how do you respond to those criticisms

stephen engle, our chief north asian correspondent in hong kong.up, 25 years as a police officer to look at how all sides can work together to create safer communities. this is bloomberg. ♪ vonnie: this is daybreak: asia. president joe biden pledged to cut u.s. fossil fuel emissions by up to 52% by the end of the decade as he brought world leaders together. biden will aim to zero out over the next 30 years in the most ambitious climate goal yet. the commitment marks a return to the paris agreement global efforts after the withdrawal by former president trump. >> all of us and particularly those of us who represent the world's largest economies, we have to step up. vonnie: sources tell bloomberg resident biden is in almost doubling the current capital gains tax on wealthy americans to nearly 40%. for those earning $1 million or more coupled with an executive -- an existing tax, that could mean tax liabilities for the rich could be as high as 40.4%. it could reverse a provision that taxes returns on investment is lower than on labor. india marked the

as we go over to stephen engle with more. the thanks that was given, trying to reset the relationship with regulators? reporter: you know, on saturday they put out a statement saying alibaba is ready to move on from this saga. in looks as though the regulatory punishment will allow alibaba to do so. this is an expensive slap on the wrist. 2.8 billion u.s. dollars is not a small amount of money. but, if i can say so, they can afford it. this is not a worst-case scenario. it did not have an order to have divestment of key asset. it is a fine. and the investigation for the most part into antitrust, monopolistic behaviors lasted for months. it pretty much concluded. so, they can now move on. it will be a part of this settlement, that includes stopping the practice of forcing mergers to choose between alibaba and other e-commerce providers. it was probably underway at alibaba. this settlement on the conclusion i should say does not settle what is going to happen to the 33% syntax which all kicked off in october or november when ja