which uses tsmc to produce their cutting edge designs they are not advanced enough to make themselves. how and why, did intel fall behind? >> it is a surprising to us to. >> reporter: we spoke remotely with tsmc chairman, mark lu at the company headquarters in taiwan. his company is a leading supplier of the chips that go in to american cars. and in march, 2020, as covid paralyzed the u.s., carly sales tumbled, leading automakers to cancel the chip orders so tsmc stopped making them. that's why why when ces unexpectedly bounced back late last year, there was a shortage of chips. leaving cars with no power parked in car makers lots of costing them billions. >> we heard about this shortage in december timeframe. and in january, we tried to squeeze as much as possible to the car company. today, we think we are two months ahead that we can catch up the minimum requirement of our customers before the end of june. >> reporter: are you saying the shortage in chips for cars will end in two months? >> no, there's a time lag. in car chips, particularly, the supply chain is long and complex. thi

mark: if you look at tsmc, the price has come down for medically because of this hit to technologies if you go down the scale, we are going into medium-sized companies that are supplying the software and design for tsmc. the people producing the actual semiconductors and chips. are the companies that are not going to be hit so badly because demand for services will continue. as you know, there's a continuing shortage of semiconductors so it is unfortunate that tsmc was hit, but because of the technology sector generally that has been hit. alix: let's go to other areas that have pricing power. you have been bullish on india, particularly with consumer exposed stocks. andy has been getting hit very hard with a variant. how do you invest -- india has been getting hit very hard with a variant. how do you invest in india? mark: the index has held up pretty well. we are focused on the medical area. medical testing, that sort of thing, and some of the inference structure companies doing pipes and that sort of thing that are needed for infrastructure because as you know, and yet is spending

we are searing shares up more than 3.5%, the likes of tsmc charging that board, foreign investors coming back to the market. the nikkei up more than 2% despite the first contraction in more than three quarters for first quarter gdp. futures looking pretty. let's look at the boards to see the rest of the region, the big news today was singapore. the travel bubble in hong kong, single -- singapore delays once again. the headlines look bad but in terms of appetite, it is quite the opposite. shares up 360 points in the hang seng. china going the opposite direction. looking across, watching breakevens in the u.s., yields also staying a little bit elevated. we are watching the aussie dollar with those minutes that just came out, pretty upbeat from a we can hear. july is the next meeting to watch for any changes in yield curve control, but they may not get that rate rise. your offshore is 643, signs perhaps the rally is darling -- stalling. taking a look at oil as well, steady near two-year highs, commodities rally continuing, the likes of old climbing. inflation concerns. iron ore recovering a

they are very tech heavy and reliant on tsmc.o cyclicals really affecting taiwan. we continue to see tighter restrict and's over virus cases on the island. we will have more to come. this is bloomberg. ♪ paul: let's get a quick check of the latest business headlines. bitcoin plunged after elon musk implied on twitter that tesla may sell or have already sold its bitcoin holdings. cryptocurrency fell below $45,000 for the first time in almost three months. muska seem to agree with this winter vos -- with the twitter post that said he should divest with his holdings. sources tell us at&t is in the talks to spin off its media business and merge it with discovery. the deal could be announced this week. the merger would combine discoveries reality tv empire with at&t's vast media holdings, making the media entity a major competitor to disney and netflix. the deal with -- what mark departure -- the deal would mark a departure from at&t's strategy of building its own media empire. national australia bank is opening a new headquarters in

most of the world's chip production -- tsmc has also curved face-to-face meetings within the company.linda: more development in the semiconductor industry, chip shortages which have already slammed automakers and consumers, are getting even worse, complicating the global economy's recovery. it shows how difficult it is. we have had a guest on the show saying we will not see better days until perhaps the end of the year or perhaps even later than that. rishaad: absolutely. when we do leave chinese chips, they have climbed to the highest level since about 2017 or thereabouts. that is a record apparently. carmakers the biggest affected groups, slated to lose out on something like $110 billion' worth of sales. they have been accumulating inventory, which is hindering other people getting hold of chips, and that is increasingly time, which is essentially one of the reasons why we have this huge shortage. what have we got next? haslinda: we hear from south korea's gender equality minister on the whitening gender pay gap. korea's low fertility rate and if the country's women should also be s

tsmc is putting in 300 billion, that's nothing to them. i'm matt miller.berg. >>>> the most crucial moments in the trading day. this is bloomberg: markets, the close. with caroline hyde, romaine bostick, and taylor riggs. carolina: live from bloomberg european headquarters, this is bloomberg markets. we have some breaking news coming from the federal reserve. a coin being discussed. they plan to publish a report on digital currencies, a view of the possibility of issuing a u.s. century bank digital currency, and indeed involving the most that the fast evolving technology of digital payments. let's get michael mckee. what do you make of the report? >> it is interesting timing because the fed has been looking at this for quite some time.

the market is trading at a 20% discount to asia excluding tsmc.ocks to overweight and goldman set an expectation for taiex rising with peak economic growth and taiwan already priced in when they see the forecast. haidi: coming up, anger year after real tinto destroyed-- -- after -- taking a look at the slow pace of change for governments and corporate strengthening protection laws. this is bloomberg. ♪ shery: a quick check of the latest business flash headlines. u.s. payments company square preparing to offer checking and savings accounts, taking aim at banks like j.p. morgan. no announcement but evidence appears in hitting code in a recent update to squares app for apple devices. the code also shows integration with existing debit cards for businesses and suggests it will --forgot monthly service charges and fees tied with minimum balances. gains made a final pitch to curb the app store market power at the close of hearings on the antitrust case against apple. the iphone maker pleaded to leave its marketplace for 2 million apps undisturbed. epic

tsmc is not the only company, there is also the supply chain.companies like ampere to exist. so the supply chain, we need more help from all the players along the way to be able to diversify and support companies at a smaller scale. the entire business is focused on supporting the big guys. the big guys can pay a lot for capacity, they can handle surcharges in the shortage. that is one of the things i think, through the administration, things we can do with the chip factories. those are super important to the long-term health of u.s. semis, which is the underpinning of a lot of sectors in our economy. emily: i recently spoke to the ceo of amd, the other of the two female chip industry executives. i am curious why women at the top of your industry are so incredibly rare, and whether you are seeing signs that that is changing. renee: we all loved your book, by the way. [laughter] emily: thank you. renee: i saw your interview and i thought, there is really just two of us. thank you. you have covered it. i think it is changing, because everybody is

him to hold the rest of the world hostage if they effectuate the unification and have control of the tsmc and that's unacceptable. >> i do think that the congress will act and we'll see if that's enough over the short term, but i think doing nothing is not an option. >> you touched on the live wire, congressman, when you talked about environmental regulations on impact. one of our audience members said during world war ii there were no stringent manufacturing regulations and wouldn't that inhibit ramping up production if we needed to do so. any thoughts with that? no question that the number of regulations that are in place today greatly outnumber those that when i started working in the industry and yes, it is an inhibiting factor because of the time it takes to get through the approval process, but i would then throw that back and say those are also legislative type issues that can be overcome if that was what was most important to the nation. >> representative gallagher any closing thoughts on that? >> you see that in the closing space and a few state of the unions ago, kate had infras

put your finger on a very important problem, which is we are heavily dependent on a company called tsmc, which is based in taiwan, for a high percentage of our semiconductors, which is exactly why we need to make semiconductors in america. it would be our plan to build another six or seven manufacturing operations in america over time so that we won't be so vulnerable to relying overly on one company or one country. emily: so, speaking of countries, obviously improving infrastructure, improving supply chains improves competitiveness. the administration has been reviewing its approach to china. when will we hear more about the findings and the strategy? sec. raimondo: this is an ongoing process, more than a process with a particular big announcement or deadline. we are doing it now. talking about semi conductors, that is core to our strategy. we need to invest in america. the president's jobs plan is about competing with china, improve our education system, our infrastructure, invest in manufacturing. the way to compete with china is to run faster and invest in america. in terms of defen

you put your finger on a fair problem, which is that we are heavily dependent on a company called tsmch is based in taiwan, for a high percentage of our semiconductors, which is exactly why we need to make semiconductors in america. you know, it would be our plan to build another six or seven manufacturing operations in america over time so that we won't be so vulnerable to relying overly on one company or one country. emily: speaking of countries, obviously improving infrastructure and supply chains helps to boost u.s. competitiveness against china. the administration has been reviewing its approach to china. when i we going to hear more about the findings and the strategies there? gina: this is an ongoing process more than a process with a particular big announcement or deadline. but we are doing it now. for example, talking about semiconductors, that is core to our strategy as it relates to china. we need to invest in america. the president's's job plan is about competing with china to improve our education system, improve our infrastructure, invest in manufacturing. the way to comp

so when you give tsmc money, you're giving that money directly to the government of taiwan. samsung, another very large corporate entity, south korean. it owns several plants in texas. global foundries. is a wholly owned subsidiary of the united arab emirates. so what we are looking at here is a reality where taxpayer money from working people in this country will be going to large, profitable corporations, and several of them are owned literally by other entities. in total, madam president, the top five semiconductor companies that will receive grants that may -- that may well receive grants under this legislation made nearly $35 billion in profits and spent more than $18 billion buying back its own stock last year. so here is the bottom line. i believe that we do want to grow the microchip industry here in the united states of america for reasons that everybody is familiar with. that is, -- that is the industry that we need if we're going to grow the automobile industry, the electronics industry, and every other industry in this country. we need to not be dependent upon ch

tsmc announcing new fabs, a lot of companies announcing that boom/bust cycles here.ssue >> i'm looking at, jon and carl, china's chip making progress they have so much ground to make up here, but the export ban under the trump administration really had the effect of creating this unprecedented drive by the chinese government and their chip makers and as we've seen with evs, ground can be made up when the chinese government supports it and puts the money behind certain industries >> yeah. i mean it's worth saving this very moment on tape and talking -- maybe we'll be talking about oversupply on some commodities in a matter of months it remains to be seen. we'll take a break here. bezos is out and his plans for space tourism. we're going to talk about that next plus, nvidia is going to rise 40% to the upside. you can read why only on cnbc.com/pro back in a minute ok, at at&t everyone gets our best deals on all smartphones. let me break it down. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone

tsmc will be on watch for the production outlook to see whether the bottleneck can be resolved. well, on the earnings agenda. softbank, alibaba rounding out what will be a very busy earnings week ahead for markets. much more to come. this is bloomberg. ♪ haidi: a quick check of the latest business headlines. singapore's second largest bank be estimates with net income more than doubling to $1.1 billion. an offset in decline as low interest continue to decline. hong kong private investment firm horizon ventures says it will make asia a priority. horizon told bloomberg it is setting up a team to explore investments on indonesia in particular. over the past year the term has invested in three indonesian startups and funding round that have raised more than two to million dollars. coin bank sank to a record low as investors fled to the likes of doge coin, a soak in the exchange does not offer. china huoarong asset management says that wired funds to pay offshore loans due friday. this includes a perpetual now and one maturing in 2022. huoarong told bloomberg it is operating normally

tsmc getting 61% of its revenue from the united states.the first quarter earnings report card. foxconn is among 19 companies that have applied for india's incentive plan for i.t. hardware manufacturing. let's get a look at taiwanese equities. investors have soured on taiwan share market with the index falling for four straight days, below a support level it held since november. it is looking to test its 50 day moving average among concerns of price evaluations and the buyers outbreak in focus in taiwan. we have concerns over the situation for the virus in vietnam. vietnam's health minister saying the situation there is worrisome and has ordered strict border patrol to stem the spread of the infection. shery: coming up, the macro economic outlook. where to next for gold and precious metals? an analyst joined later. haidi: we have that big interview as well. the boston fed president. thursday, you are watching from sydney. we have lots mor come. that's it for daybreak asia. market coverage continues. we are looking ahead for the start of tra

tsmc, aia, 4.7 percent, your biggest mover to the upside in hong kong. you see on the benchmarks? tom: mainland markets, schama kai composite, -- shanghai composite, giving up gains. you talked about the regulatory hurdles around technology, and also the curbs on some of the industrial sectors. in hong kong, you are looking at modest gains on the hang seng, up zero point 2% despite the drag from alibaba, which citi has cut the price for about 10%. david: coming up, mapping out what markets look like next week. also, u.s. trends, a steepening of the curve. cheap global equities. also coming up, we will talk about the rising impact of inflation and commodity prices across the region. there is plenty more ahead. happy friday. this is bloomberg. ♪ ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the

get resolved in the next year or in the next couple of years, even, and we know how big samsung or tsmcts. guest: that's absolutely right. it's a different kind of technology. it's semiconductors, hardware, where as when you talk about china you're talking mostly about the internet, retail, that type of stuff. that's absolutely right. we would be more positive on the hardware side, but at the time we made this call, those two markets had not rallied very strongly already. we felt they were also due for a pause in the unit faded better on their own, not really able to move the em index. but absolutely it is a different case in those markets. you always have to be able to be cognizant that when you are buying an index level, you're buying huge single stock risk, as well. shery: that defendants could cut both ways, right? -- that dependence could cut both ways, right? what about the potential for earnings this year and next? guest: when we look at a global pace that is why we are still quite positive on risk assets despite the fact that, you know, we see the maximum point of acceleration i

we are watching tsmc as well. the company started productions of iphone chips. we are keeping an eye on xiaomi with smartphone growth outpacing rivals. the company warning the chip shortage will likely worsen. the company also looking to be eligible potentially for the ft se china index. keeping an eye on tencent. local media reporting the tech giant has been reported to set up a financial holding company. shery: we are headed to the chinese open. that is it from "daybreak: asia." we will continue to watch the markets. hong kong, shanghai and shenzhen open next. this is bloomberg. ♪ ♪ david: this is my kitchen table and also my filing system. over much of the past three decades, i have been an investor. the highest calling of mankind. i've often thought was equity. [laughter] then i started interviewing. i watched your interview. i know how to do some interviewing. i learned how leaders make it to the top. >> i asked him how much he wanted. i said fine. i did not negotiate with them. i did no due diligence. david:

this as we heard from japanese media, saying japan is eyeing a sony/tsmc venture for creating a chipntinuing to watch sony as it is gaining ground for a second session. bloomberg subscribers can continue watching at live go for that sony strategy conference ongoing right now. you'll also find big dire entries coming up today. also let of this week as well as some events you may have missed earlier. for now, let's get to vonnie quinn with the first word headlines. vonnie: the european union moved to impose further sanctions on belarus after its forced lending of a liner jet over the weekend and arresting a journalist on board. they will close airspace to belarus, something the u.k. did tuesday. the eu also plans to suck their -- plans to target whole sectors of their economy. president biden welcomes the response. the first face-to-face meeting between president biden and vladimir putin is expected to take place june 16 in switzerland. the white house says the leaders will discuss a full range of pressing issues as the u.s. seeks to restore predictability and stability to their relati