the yuan in focus. it does not go all the way to 620. investors set the fixing to a lower than expected level. we are seeing some verbal intervention, brent crude up 0.6%. the countdown is on for the opec-plus meeting. any color on the prospect of returning supply will be critical. let's turn to some of the european calls, marginally higher than on the euro stoxx future. lower now, a quarter of 1% as we head for some of these markets to come online. the euro-dollar is currently flat. green note on gold. the biggest monthly gain since july on inflation bets. they have erased their 2021 losses and is one of the best-performing metals in may. soaring input prices weighed on smaller chinese factories. let's get more on this with juliette saly. is there a sense that this nascent momentum we began to see in the recovery has peaked? juliette: when you look at market action in china, it seems like the market thinks that is the case with a little bit of weakness creeping through. the official gauge coming in 51.0, which is slightly below what est

we are watching the yuan very closely -- where does the pboc want the yuan to be? the pboc once the currency to be stable. there was a lot to like with the yuan, strong economic growth, yield pickup, and in terms of the equity markets, we particularly like a lot of the a-shares, so there is a lot of reasons for capital to be flowing into china at the moment. from the pboc perspective, they want stability. so maybe you will see them start to allow more capital outflows through the quote is to achieve them. yvonne: -- haslinda: we heard sofia say it is managing expectations, not the currency, anyway you look at it, is it manipulation? kirk: eight only appreciated 2% year to date. over a full year, going to 11%. i think they just want an orderly currency. they are not so worried about the direction, they just want to get there in an orderly manner. and that would be the case for central banks in all developed economies, or all economies. yvonne: we are seeing a lot of interest when it comes to mainland equities as well, break out in chinese stocks, csi 300, is there a

the strength in the yuan is much more to do with the pboc's tolerance for a stronger yuan.s that a political weapon? annmarie: we saw that on the front page of one of the state run newspapers this morning. what's interesting is, what was the best that they could do? joint recognition that trade is important. that was a quote. there's more divisiveness between washington and beijing. you mentioned those comments were quite a blow from kurt campbell, about the fact that he sees this paradigm shift between the united states and things will not continue to go as they had. he talks about competition between the two. potentially, happy talk on the front page headlines. when you look beyond the surface, there's more divergence. manus: where did they collaborate? where do they compete? my guest says there was a huge opportunity for the green agenda. that's where china will win. perhaps that's where the biden administration is most concerned. we keep that in mind. get ready for more volatility in the offshore you want relative to the onshore. it's on the front page of the security t

your take on where the yuan is headed? rajeev: one or two people mentioning concern about the trend, it like we saw last week, they are initial signs. but now we got another warning as well. as a currency investor, i am taking it much more seriously that the chinese leadership know about the strength of the yuan. strengthened not against the dollar but also against other partners as well. so i think one has to be respectful of what they are saying right now. probably going to be good levels to buy the yuan later on, probably just not now or the next month or so. rishaad: rajeev de mello from deep learning investments, thank you. let's look at what is going on with the virus in china. vonnie: good morning. while joe has ordered residents in one of its neighborhoods to stay home to contain the coronavirus outbreak. infections stem from the very first detected in india, five confirmed cases and 21 asymptomatic infections since may 21. the government says only selected household members from the area impacted can leave home to

they still see the trajectory of the yuan upwards from here, a stronger yuan because in many points ofhe yield differential is very substantial. that is pulling in those foreign flows, the economic recovery is on a pretty solid footing as well. so those factors still give the yuan support according to the likes of west bank, scostiabank looking at 6.2 at the end of the year. this is possibly one measure and they may follow through with additional measures to try and stop the yuan going forward, but it has followed of course a lot of jawboning from policy makers just over the weekend, you have an ex-official and a state media commentary both trying to push the yuan down with a bit of verbal or rhetorical jawboning. this is a concrete action they hope is going to lead to a bit of weakness or as they said not bets on one-way moves on this currency. offshore, a bit of weakness on the back of this move. sophie: jawboning will be challenging given that it will underpin the appreciation. also on monday, tom, china announced a major change to its family planning policies. what do we know about

we will get more on the yuan.official may pmi data out of china in 20 minutes time. if that comes in as expected, solid 40 when it comes to manufacturing, strong external demand which could give greater support. i am joined by michelle lam. great to have you with us. let me start off with our question of the day. how much upside is there really for the yuan rally to run for the rest of the year? you are quite moderate it comes to your call on the rmb. you say it is due to strength across the euro as well. >> yes, i expect there will be more upside in against, the u.s. dollar by the end of this year. i think this will be a story about dollar we is over the next couple of months or second half of the year. we expect western economies to slow, so the growth differential between china and the rest of the world will narrow, so that will be a driver to wait on so we expect to see quickness starting next year. haidi: i went to the rope this chart taking a look at inflationary impact not just when it comes to rising china

it -- yuan.ion to appear a lot of talk from the pboc but the actions so far have not been significant enough. in yuan terms, we do not expect a significant follow-up. to help push dollar-renminbi upwards. a lot of talk but not much action so far. dani: simon, we also had the pmi figure come out as well. the idea seemed to be that it shows that manufacturing has peaked. can we use it as a blueprint for other economies considering china was one of the first to open up and see that growth? simon: to some extent that is true and global manufacturing has significantly outpaced services and retail. china was the first to exit. manufacturing in china is probably operating at its capacity. not true yet in most of the western world. matt: simon, we have to stop you there. our emerging market strategist. this is bloomberg. ♪♪ >> russian government -- this is the offered of the russian government to smother belarus. >> i am meeting with president putin, making it clear that we will not stand by. >> china co

the officer yuan is very important.ead the mood, but it is the dollar cny, the onshore rate that is probably more important for the signaling that the pboc will let this go. we can see the officer yuan trade below that level in u.s. time. there could be a lot down there. and now will put pressure on the pboc to allow us to go below 640. but ultimately the more important signal is what happened to the onshore yuan, the dollar cny. there are three levels to watch. offshore is the first leader, that will set the direction for dollar cny. if it validates with the offshore is doing, that provides permission for the bloomberg dollar index to break down. that's where we are watching this. we had the first signals go, we have not had the other validation, but the dollar can break down. anna: down .1 .6 percent on treasury yield. mark: it's definitely helping, at the moment we are seeing a little bit of inflation and threats come out of it. we have seen the pressure come off the rates move. a little bit of that from the u.s. has

right now, 6.37 on dollar-yuan.ave started to raise the question that maybe they would push back against some of the commodity strength by introducing may a little bit currency strength. they say it can't be used to offset the commodity price rise. they also say the exchange rate can't be used to spur exports either. maybe some weakness. the idea being maybe stability is the way forward. lisa: the idea also, it can be used to spur exports either, speaks to rising tensions between the u.s. and china. we are seeing that joe biden has reiterated some of the rhetoric from president trump recently. he says the era of engagement with china is over. it is now going to be an era of competition. you wonder how much that is feeding into the pboc's stability call. jonathan: lisa alludes to the fact that this was i think the first talks between the two trade leaders in the last 24 hours. . tom: i should point out here, very importantly, this is what president trump on to. let's be honest about it. he wanted weak dollar to spur

with this -- will this put a lid on the rally we have seen in the yuan? mark: i think the external forces are also starting to look a little bit overdone. i think when you think about the context, the biggest thing moving the dollar is the outlook for the global economy, the general inflationary environment, i think the backdrop we have seen is one where we see less movement in u.s. breakevens, driven by a move in llama -- in nominal rates. i think what the pboc was trying to do is manic -- is manage expectations about money coming in for the wrong reasons, which would push the currency stronger than they would like. what they are looking to do here is limit inflationary pressures. but i think they are nervous about how much stronger the currency can get if they aren't trying to stabilize the move to some degree. you could see another 1%, 2% lower versus a risk/reward of maybe 3% to 4% move higher in dollar-yuan over the next few months off of the back of maybe the fed tapering narrative. annmarie: what about trade talks? at some point, doesn't china at l

haslinda: speaking of china and the yuan, we are seeing the weaker yuan fixed today. is there a sense that perhaps the pboc is concerned about you on strength -- yuan strength? >> you have seen a significant -- returning. it's a bit more stable. i don't think i sense too much of a concern at this stage but as you start seeing pressure with the u.s. demand, i think you could see them pressurized again to make sure the exports stay very attractive. whether this has enough demand, i don't see that as a huge concern. yvonne: thank you for joining us from state street global advisors. first word news with vonnie quinn in new york. hey. vonnie: thanks. the european union agreed to new sanctions on belarus after the fourth version of orion or passenger jet and the arrest of a journalist on board. these include banning airlines from airspace and airports. further sanctions targeting lukashenko and his associates are also being imposed. russia is backing its allies following belarus's explanation of it actions. >> this outrageous behavior needs a strong answer. therefore, the

the yuan is in focus. we are already seeing strength in that currency today.ok at where we are. cryptocurrencies, an asset class we have been watching all week long, all month long. we have the crypto index down by about 2%, and we have bitcoin bouncing off highs on the back of carl icahn's comments. stay with us. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a

one intervention on the yuan. you could get a real spoiler from the jobs report at the end of the week. in crypto land, never far from weekend trading in bitcoin. talking about a triple bottom. that seems -- goldman sachs saying bitcoin could lose its first mover advantage. eventually, it will lose its pride as the dominant digital. we keep an eye on digital and whether there is a bounce to come. it could make it all the way back to $64,000. the cash markets are closed. you know that. have a look at the stocks on the futures aside because the treasure market is in a social taper. the stock market is preparing for either an inflationary angst or -- bank of america says to position yourself of the second half. those are your markets. that is the context of where we are. the real risk is that you have intervention from china and why would you want to take bond risk in a week when you would get the wages and the jobs report on friday? let's get to leigh-ann gerrans. she has your "first word news" from around the world

what are we seeing what the chinese yuan?g month end. >> you have seen overnight dollar-yuan got close to 640 again, the third time we have been close to breaking this threshold since february. it does seem like the chinese central bank is starting to defend that line but it won't be able to do that indefinitely. it looks as though the option market has already made up its mind that dollar-yuan will trade quite a bit below 640. there is a tremendous skew in the options space where the demand puts calls below 640. that is pretty extreme, the most extreme it has been for a couple of years. so the traders are already putting their hedges on the fact that the central bank will step back and allow dollar-yuan to trade lower. it seems only a matter of time -- possibly it has to do with the fact that all -- although the article was withdrawn, china could import inflation from overseas. it does appear that there is some thinking that maybe a stronger yuan is not that damaging to china and they might not be long in allowing the you wa

that pressure is the yuan weaker. as you point out, the move follows the attempts over the weekend to talk down the currency. clearly officials are concerned versus the u.s. dollar, a five-year high against a basket of trading partners. sophie: there could be a delayed reaction when new york comes back online. tom: commerzbank saying it's largely symbolic, they think longer-term the trajectory for that you want is higher -- y for theuan is higher. particularly the u.s., that's proving support for the currency. you have the likes of scotia bank saying 6.2 for the currency going forward. standard chartered saying they think this could be one of a series of measures by the pboc. they think this may not be a one-off. so continue to watch for action on this, but again, the move building on the jawboning were seeing on this. haidi: the longer-term demographics worrying as well. i know lots of people that are only having one child. so what do we know about what they are trying to do? tom: to your point anecdotally, those i'v

what is the strength in the yuan playing?this lockdown things were changing significantly. this was something of a boost in exports. china is in a way, a special organization, the expert gains [indiscernible] when will the worldwide come back to pre-corona levels? the special phase may come to an end in the foreseeable future. this is something that then would not justify the interest rate. it would strengthen the reduction [indiscernible] this is something were strong levels are something of a concern for china. anna: thank you very much. stay with us. head of commerzbank research. coming up next, a spoonful of sugar. we will speak to the ceo of the ingredients company. that company is next. this is bloomberg. ♪ anna: welcome back to the european market open. fairly flat for european equity markets. let's get to you kate corporate story. -- u.k. corporate story. they expect weaker earnings next year. joining us now is nick hampton. ceo of tate & lyle. the stock is down. give us your top line in terms of guidance. what is the

we will watch the tolerance for that yuan strength.hile we are seeing the dollar under pressure, turning up the board on the terminal, we are seeing gold gains. it reversed the year-to-date losses with trading at more than four month highs, holding around $1900. bmo capital saying we could see it test resistance level at $1960. looking at the chart on the terminal, yields on 10 and 30 year treasuries at the two week lows. pulling up the chart right now, as you can see, benchmark rates falling below 160. this as we saw the u.s. consumer outlook soft into a three year low. new home sales in the u.s. fell by more than expected in april. going forward, when it comes to the outlook for u.s. trade, our colleague alice andrus sees a test of $153 over the next few days. shery: rising u.s. inflation undermining consumer confidence and putting a break on new home sales even though the number two official at the federal reserve says it is only a temporary problem. kathleen hays is here with more. consumers are worried, but the fed not so much. ka

the estimate was only around 3 billion yuan. this is still a 13% slump, but we continue to see travel improving as the covid pandemic gets reigned in with accelerating vaccinations. reservation revenue also a jump of 39% year on year. ticketing revenue though, a contraction of 37% on year. but overall first quarter revenue beating analyst estimates. let's now turn to one of our top read stories. bitcoin slumping to its lowest since february after china's central bank reiterated cryptocurrencies cannot be used as a form of payment. list cross to kriti gupta for more on this. what else are they saying? kriti: they are saying you just cannot use it for payment at all, that they are not real currencies. a stark contrast to what you are seeing stateside. the likes of overstock, tesla and several others excepting bitcoin for a while. china saying we do not think it is a real form of payment. also saying there is not really a way to price those products financials, payment institutions, you just cannot use them. so just saying we are n

the yuan hit 23 high against a basket of currencies. bullish forecast on the renminbi from analysts for the onshore rate. it could go over 800 but he does see consolidation given that we are seeing oversold territory on the ris part that dollar-china currency. over at socgen, the u.s. bound taper tantrum is done. we are seeing yields picking up faster which could lead to a divergence in rates that will have may be the euro and the yen looking cheap. this morning trading at a seven-week low. hayley: president biden insect to unveil a budget. it will also run an annual deficit of 1.3 trillion over the next decade. the plan would offer a first look at the administration's effort to boost the size and scope of government. this is a pretty comprehensive accounting of everything that we have heard so far. it also a thing for the first time offers projections on how it could impact growth, inflation and the implement forecast. >> exactly. we have heard the white house and the president layout individual elements of the infrastructure plan -- t

the strongest in about three years on dollar-yuan.e a joy today on this day of 100 when he five years of the dow jones nest -- of 125 years of the dow jones industrial average. dave wilson is a bloomberg contributor, but what you don't know, he invented the equity coverage at bloomberg news, and we are thrilled david could join us today. and someone says dow jones theory or dow theory, what is that? dave: basically, the idea that if a market's really rising, then the dow jones transportation average has to be setting new highs along with the dow industrials. this goes back to win the averages were much purer than they are now in terms of industries, so if companies are making more stuff, the railroads and other transportation companies need to be taking it places. tom: we are not going to go ritual gristle -- go richard russell here from another time and place. two jon's valid point, are they fossils from another time? dave: they are representative of their industries. there are a lot of other indexes that cover the same ground now ar

the chinese you on -- the chinese yuan strengthens out to a 6.41 level.hat is a really compelling statistic. lisa: did you read about how the central bank in china was hoping for a little more strength to offset the commodity inflation? that they thought it could actually help the economy? so perhaps this is part of the response. jonathan: easiest way to let the policy response happen overnight is to let this weekend best to let this weaken. tom: to me, it is the dynamics david kostin was talking about. that goes back to foreign exchange, the litmus paper of the market. we all know the cliches. they'll drive her aris in the city. -- they all drive ferraris in the city. ira jersey is joining us now, our u.s. rates interest strategist. what is your signal from one-day paper out to 30 year bond? ira: that the market is still thinking we are going to get more inflation, and i think that commodity story is certainly part of it. when we are talking about 2.5% inflation, it is almost a goldilocks scenario for the fed if the market asportation is realized because

yuan up sharply against the dollar. 2 and a half percent overnight.ryl casone with the details. cheryl: new york city and los angeles public schools will be open for in-person learning. new york city will not offer remote option come september and kids will be in the classroom 5 days a week. there's a catch. >> new york city public schools will fully reopen in september, every single child will be back in the classroom. >> masks will be required, we will continue to follow the cdc social distancing guidelines at that point. cheryl: now los angeles will offer remote options for parents who choose not to send their kids back in person, a decision on masks has not yet been made in la. well, speaking of our children, more than 180,000 people have signed petitions urging facebook to scrap plans for instagram for kids under the age of 13. this follows campaigns by u.s. attorney general and child advocates that social media can be detrimental to health and well-being for children. the company is just exploring the idea and agrees that safety and privacy must

i think it will happen today now that we are getting the signal from the yuan. we did not get the close that was so key and the onshore was not down there at also we needed to wait for the close but it's interesting that the pboc has not stepped in. it was not discouraging for yuan gold despite expectations that did not set it higher and pushed back against some of the move so it's giving a little bit of a green light to dollar weakness. the reason we are not seeing it breakdown yet is because the euro and sterling are large weights. they are the ones slightly lighter here. we are seeing many other currencies but the euro and sterling are a little bit more subdued, a little bit more moderate. we need to see momentum that. i think we will see it today. anna: both of us fairly flat. let me ask you about treasuries because this is something we have been tracking very carefully with all the talk about inflation. we see ongoing demand despite the fact that we see appetite for stocks and bonds. we have seen downward pressure continue on the yields here. does that look

dollar and the chinese yuan.e moment, it has widened a little bit from the previous month or two, but over time, that still depends on whether the pboc is going to tighten and this would potentially give rise to further expectation. rishaad: good stuff. if you are a bloomberg subscriber, you want to catch up with all of our interviews, just give the function tv . and you can send instant messages to our team during our live programming. this is bloomberg. ♪ ♪ haslinda: german chancellor angela merkel has weighed in against a u.s. proposal to waive ip protections for covid-19, arguing that the u.s. planned would create severe applications for the production of shots. final decision lies with wto. let's bring in michelle cortez. this is a tricky situation. we have heard that this is an economic and moral issue of our time. michelle: there are two sides of the story and complication issues on every angle of it. we do have a pandemic that continues to rage, especially when we are looking at countries like india a

currency, how much is being driven by the yuan?imon: i think there is kind of an independence emerging. remember, you've got very strong appreciation forces reaching the central bank, whose resistant to appreciation, and they will probably continue to be resistant after you saw the slightly weaker than expected data today. whereas other emerging markets, take the korean won for example, these are responding more negatively to the selloff in tech shares, and also because of concerns about covid, more broadly and asia. i don't think the yuan at the moment is a significant driver of other emerging effects. haslinda: simon, thank you for that. bloomberg's simon flynt here in the lion city. still to come, elong must continues to whistle the price of bitcoin. tesla may sell or has already sold its cryptocurrency holdings. we will discuss how bitcoin is spreading next. this is bloomberg. ♪ rishaad: the world is ripe for crypto investors, the world continues with elon musk implies tesla could settle. bloomberg's cross as it editor is joini

net income up to 6.5 billion yuan that beat estimates.unds contributed to the profit beat but when you have revenue jumping from more than expected at 55% growth on the back of those smartphone shipments, that leaves the company to say they are going into other areas. they had a $10 billion bet on new initiatives into electric vehicles so this is where xiaomi is heading. strong revenue growth from smart phones. it is narrowing the gap with world leaders, applicants amazon. it still has a long way to go but in china, it is fitting as well by a return to men -- retrenchment by huawei. they are doing well, strength to strength, except chip shortages are a problem that could be seasonal. it will not be results this year. in india, they own 28% of the smartphone market. they have tremendous challenges. >> staying in tech, we are hearing about tencent and regulators giving some opinions about their businesses. stephen: this is a financial magazine, influential in china, confirming what bloomberg news has reported and that tencent has indeed bee

in the offshore yuan is had a stellar week as well. we had the pboc cautioning against one-sided expectations, and capital flows to the mainland have felt was the csi 300 to a march after eight four taking with the index at for the best week since the winter new reopened and we are watching earnings due on friday and g date logistics making its debut in hong kong. shery: we have breaking news at the moment, the japanese government is seeking to extend the virus emergency in tokyo and other areas. remember this virus emergency has been extended across the country many different prefectures across japan as we continue to see the rise of infections as the vaccination rollout is quite slow across the country. we have seen a lot of controversy over the upcoming tokyo olympics in july, whether or not it should be held, japan seeking to extend the virus emergency and tokyo and other areas, breaking at the moment, saying they will extend the emergency through june 20, at five weeks before the tokyo olympics. a cancellation of the olympics woul

on the renminbi, the offshore rate below that 640 handle after breaching the level with the onshore yuanesterday. seeing a move toward 630 for the currency. the pboc will likely mitigate the rally on china's exports. i do not see the renminbi moving far from that 640 level. dollar depreciation will moderate. the u.s. is seeing the tightening shift globally. haidi: let's get back to one of our top stories. the u.s. trade representative expecting to hold discussions with her chinese counterpart in the coming hours. china is stressing the importance of tariff rollbacks. our white house reporter in washington, and our markets coanchor, tom mackenzie. what do we know about these talks said to be taking place soon? >> we don't know a ton yet. the ambassador will speak with beijing as early as this evening. the timing is fluid. we are not sure who won the chinese side she will be talking to. a key counterpart during the trump administration's trade talks. a lot of similar conversations. we will be looking to see if he is the person she ends up talking to. in the earlier call, as a prerequisite,

is that a way of manipulating the chinese yuan, do you think?think, there are reasons why we expect china to be holding commodities in the near-term, given concerns about inflation and the strong rebound in the last year in china's economy. in terms of what it means for the yuan, the longer term story remains one where china's interest rates will be well above developed markets and that will attract capital to china. the good news, the u.s.-trying to trade -- china trade tensions are getting worse. they are not rising or coming down. if you get a weaker dollar due to the fed dovishness, [indiscernible] 2017, and 2021. so the longer term forecast is for the yuan to strengthen and we are looking at to get to 6.15 against the dollar in the next 12 months. we think the dollar [indiscernible] 1.25 in the same period. rishaad: i want to get to the thesis behind the weaker dollar. if we have strong economic growth and the possibility of inflation, we could see treasury yields move up again. that is something that really supported the greenback in this

we have crossed the 100 billion yuan mark.are certainly on pace for another record year of defaults for onshore bonds. haslinda: thank you so much for that. let's get you the latest business flash headlines. we are watching shall me after the smartphone maker said restrictions were lifted on shares in new york. it was originally grouped with a number of companies deemed to be under the control of the chinese military. they agreed to set aside earlier this month. amazon has been sued by the attorney general of washington, d.c. about allegations of competitive pricing. he says amazon's policies prohibit third parties from offering products at lower prices on rival platforms. he said it led to high prices and allows the e-commerce giant to create monopoly power. amazon says the ag has it backwards, and it would lead to the posting of higher prices. goldman sachs is forming a wealth management joy venture with china's largest bank. they will take a 51% stake. it will boost u.s. firms distribution network and access to wealthy cust

it is very subtle, very nuanced, but renminbi three days and around pups out on yuan. a very strong chinese currency. other currencies clearly ascending. that will be one of our themes through the morning. ed morse on copper. this is bloomberg. stay with us. ♪ tom: "bloomberg surveillance," good morning, everyone. with us, romaine bostick. edward morse will join us from citigroup on commodities any moment. some stability in oil through the week, just under $70 a barrel on brent crude. i believe i heard matt miller talk about gasoline on this memorial day weekend, up near a 10 year high. we will have to discuss that as well. i would also note, as the dollar is churning here, within that is strong renminbi. we will get to that any moment with dr. morse. futures will never go down, and now to explain all that matters with gamestop, amc and the rest of it, mr. bostick. romaine: i'm actually going to start with ford because this is the other meme stock rallying. tom: ford is a meme stock? romaine: it is now. right now up 2%. doing work over there to try to pivot this compan

the dollar stronger even versus the yuan even though the yuan is deepening its deficit with china.es beating expectations, the people are tepid on their shares. trying to square what are the fundamentals net world awash with liquidity. jonathan: this was pre-much expected to happen. if you have a demand shock in one part of the world, then we have trade deficits like we just saw. what ethan harris said is this will get wider. that is the call i think is more interesting. not what happened now. it is what happens in the futures. is this something that stays this wide, structurally, relationship between china and the united states that persists beyond this year? tom: it sets us up for a nuanced june. jonathan: a nuanced tuesday into a nuanced june. coming up on the open, megan greene. lisa abramowicz, tom keene, jonathan ferro, on radio, on tv. this is "bloomberg surveillance." ritika: with the first word news, i'm ritika gupta. a landmark trial involving the opioid crisis is underway in west virginia. the biggest drugmakers accused in the u.s. accused of swamping -- laura's -- lawye

we are seeing the pboc lift the fixings for dollar slightly -- dollar-yuan.going to the yuan the next couple of days, and slightly higher, that could drive the whole asian exchange group, and we could see some of the weaker currencies lose ground. this could only be the early stages, fairly higher by the end of the month. yvonne: mark cranfield, and you can follow more on the inflation debate which is moving markets, and getting a market rundown, and there is kark -- market analysis. let's get to the first word news, vonnie quinn in new york. vonnie: do united nations security council will hold an emergency session on the escalade and violence between israel and hamas militants. israel's defense forces says more rockets were fired at tel aviv overnight. earlier, israel released new airstrikes on gaza while the clashes have reportedly killed 35 palestinians in gaza including 12 children, and also three israeli civilians. the sec is warning consumers of volatility and the lack of regulation in the bitcoin markets, urging them to consider the risks. the agency c

saying maybe cryptocurrency can kind of exist alongside the digital yuan.s is a reminder that china is watching this stuff. they do periodically, along with these wordings. this is not too unusual, but china is definitely a big area still for mining and for investment. it definitely affects the global crypto operation. anna: joanna, thanks for the update. joanne sager -- joanna ossinger giving us a crypto update. for our top stories this morning, here is laura. laura: france is easing lockdown surgeons. one of the key measures, the reopening of cafes and restaurants. nonessential shops will also open to a restricted mena customers. president biden is planning a two-week delay on a ban in new investments in chinese companies. sources tell bloomberg officials are dropping guidance to clarify the trump-era policy that confuse wall street. the main question is over how chinese investment banks apply to subsidiaries. boris johnson is fleshing out his plans to level up the u.k. he wants to spend 830 million pounds on transforming local town centers. he also plans

yuan, stronger sterling and everything. the yield space is fascinating. the two year yield, .1449. be one of the themes of david westin speaking with robert kaplan. the last time president kaplan spoke, he moved the markets. we'll see if he can do that again. stay with us on radio and television. this is bloomberg. ♪ we know how much you count on us... ...and that's why we're here 24/7... ...and on the road maintaining a fast and reliable network. we're always working to ensure the internet meets your needs... ...by making access easier for all... ...with comcast lift zones and our internet essentials program. we're invested in making our apps easy... ...to give you personalized assistance around the clock. and we're committed to keeping our team and customers safe by working from home... ...and using precautions in store. see what we're up to at xfinity.com/commitment (announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're

the korean yuan trading at about 11.20. the tech heavy is under pressure this morning.ouncing back a little bit after being led lower by health care stocks on monday as the shortselling ban was lifted. biopharma and battery makers are vulnerable to downside pressure. switching the board for what's happening across assets early tuesday this asia session. the u.s. s&p lower after we saw stocks higher on wall street. commodities very much in focus. we are seeing some renewed energy demand optimism after the eu proposed easing some travel curbs for people who are vaccinated. that will help lift oil prices. crude above $64. we have precious metals on the radar. silver futures continuing to gain ground. we have dollar weakness in the wake of the u.s. pmi numbers, showing it could be slow in the u.s., haidi. haidi: emerging investors head into the first week of may with as many reasons to be gloomy. all the support from the u.s. stimulus plan, dovish central banks globally, and rising commodity prices, worries over covid-19 cases in asia and china's debt saga may give buyers p

now to check in on the korean yuan, which is leading gains in asia.for em currencies with a gauge of the emerging market. forex hitting fresh highs once again given the focus we are seeing on that space. kathleen: let's stick with this whole look at korean assets. stocks have been on a tear since march, outperforming every major market globally. despite the rally, some say valuations are starting to catch up. let's bring in the head of korea research from cls a. valuations starting to patch up. what do you see? >> korea had a big rally. korea was categorized as a beneficiary of covid-19 because career has a high exposure to technology and it is advanced in the i.t. infrastructure. there are a lot of sectors that benefited from covid-19. the value is that historical highs. it is not the cheapest in the world. it used to trade at a discount to a lot of the regional markets. it is no longer the cheapest market. kathleen: i want to touch on the vaccine. on the virus itself, korea was one of the countries that seemed to take in the strong, active, aggressi

they're already digitizing the yuan.e'll have papers and discussion sessions talking about it for the next 10 years. charles: shana? >> charles -- charles: yes? >> so this, this was always coming, right. the whole essence of blockchain is the fact that it is supposed to be decentralized, right? the whole essence of the central bank that it is centralized. so they are going to come up with a centralized competitor in order to control it, in order to fulfill their dual mandate from congress. that is the simple nature of this. charles: francis, i'm sorry, i looked at the guest list, shana is later in the show. i apologize. i agree with you. this was always coming, in my mind i think the fed is not just alerting the public. i think they're trying to nudge this administration as it is going to war with crypto. i think the biden administration has got it all wrong and they're making a huge mistake and i think chairman powell when he speaks is not speaking to but an audience of one, the guy in the oval office. let's stick with

before founding zoom, founder eric yuan worked at what company which was later bought by cisco?en the company was bought by cisco in 2007, yuan was appointed vice president of engineering. >>> a founder of the subreddit site wall street bets has launched a blockchain app featuring exchange portfolios. joining us, jamie roginsiki. famous you tweeted out you were going to be on and i appreciate because i want all these people, all these followers, i want them all watching "squawk box," but can you ask them to be kind? would you mind i do not -- i can only speak for myself, but i don't want to wear a jacket so i am not a suit. so can we make that clear right from the start >> as you can see, i'm not also wearing a suit but absolutely. look, i think the idea is to get a lot of people in the crypto world to watch cnbc, right this type of product that we're launching is the merging of efts and blockchains with traditional wall street. >> it's fascinating. i spent some time on it. the amalgamation of blockchain with the financial markets so the way i understand it, and we've seen that

intensifying crack-down on the digital currency and move that could bolster own digital yuan. >> good morning, maria. crypto currency and crypto asset and you put it on the spectrum of greed and fear, we've done a huge shift to greed and fear. value 50% from its highest right now. we will get more volatility. the buy-gift mentality, you will get a balance. i worry about the volatility that we are seeing at bitcoin working its way through that to equities as well because, you know, we've had asset inflation clearly and the fed wants that but, you know, i don't know how you value bitcoin. where is the intrinsic value. you can say it's going higher but that's not a great investment thesis. maria: for sure. jack, real quick before you go, we only have a couple of seconds. you're affixed income guy, you were focused on the fed yesterday. did anything strike you about the comments? >> no. you know, they covered all bases. they said we are thinking about a plan to have a plan, so, no, nothing surprised me. maria: there's a plan to have a plan when we have a plan. alli mccartney, jack

. >> that's what i was going to ask you next which is the digital yuan whi is testing as we speak. there's a lot of hype about it and whether it could supplant the u.s. dollar on take over the global foreign exchange system do you really think china can convince consumers internationally and investors internationally to get into a digital yuan when they haven't done so with their own currency? >> i don't i think china can force the adoption of their digital currency for traded investment in china per se unless the u.s. and the west outlaws it or basically disallows it as something that can be owned. i know that sounds hyperbolic, but i don't think you can get a little bit of cancer either you have cancer or you don't. i believe the digital yuan is the largest threat to the west that we faced in the last 30, fort years and it's because it allows china to actually get their claws into everyone in the west and allows them to potentially export their digital authoritarianism i believe it's a digit today only 1.8% of global transactions settle in r & b and that's almost exclusively in h

power regarding the yuan it is obvious or they know i think nation and you know it is really they come out ok and you know you have been good. but in general neglect is. i think that you and. your like action united nations systemically mission or get our underground. our family to this and then i mean who asked her to mediate here how quickly can it be brought to some sort of complete conclusion how many more people have to die before before that happens before somebody makes makes both sides see sense we're hearing now that i've got a 6 year old child was killed in that rocket the latest rocket attack which which had startled. very good question you remember exactly sure 2014 in the face a couple of days there where maybe 50 palestinians have been killed and the procedures. lashins. pays a lot of obstacles but after 50 or 51 days the palestinians more than 2000 palestinians have been killed since their reach. which means that we are afraid as a gaza we are afraid that. the truth will be from photos of thousands are seen and are going to die this is the line and we are afraid that tha

as chinese markets open, the offshore yuan at that level.ong break for mainland markets, which saw tourists take 240 million domestic trips. shery: after that best monthly performance since january. let's turn deeper into the markets. my next guest says the key benefits will be north asia and singapore. let's bring in the head of asia-pacific microstrategy, state street global markets, thank you for joining us. these economies are strong. is that what you're looking at? >> yes. tech in particular. we are in the midst of a pandemic, and what it means for demand, product demand, various sectors. we think that is tech. it is an overriding beneficiary of this work from home trend we have seen, and that will probably not go away. when you think about the importance of pharmaceuticals, and there are areas, major pharmaceuticals exporters, the sector, region, north asia, singapore, but an economy along the same lines is north asia -- as north asia, why it will outperform in the domestic demand consumption picture rises with three openings. in the m

outby to therion the it the traditional us the whole opiate the yuan albeit these new digital currency is that they want to shift from the central extract now the good thing about the central banks is all the central bank there's a recurrence you know we see the ramifications of large scale tech companies having the ability to sense and speech right and speech is the stuff that you just say out of your mouth right so whatever accentuate of this that wherever the magic and organization having has that it's a sense of your human action so there is no wall fundamental form of speech that human action which is the things you do so i always say to people it's like don't tell me what you believe show me a bank account and i'll tell you what you believe right so people do what they believe through their actions and their actions measure through where they spend their money and what they do it on the central bank digital currency the issue and will have the capacity to decide when you should spend how you should spend for what reason you should. and how much you should spend on what it's ridic

coin jumped to all new heights and instead it crashed now since then there's been a renewed push by yuan musk and mark cuban to push the price back up again and it has worked to some extent so why are billionaires now pushing up the price of. well look i can't speculate as to exactly why these 2 particular billionaires are doing it there's a lot of speculation that the 2 of them both hold a lot of those coins which you certainly maybe the case i don't know that i haven't seen their wallets i will say this there are roughly 3 or 4 wallets that control about 60 to 65 percent of all those points so a very small number of people control the majority of them but let's talk about the reality here the reality is is that i think point serves as a cautionary tale in some ways but it also serves as a way of looking at crypto in general the cautionary tale is if you get in as something is moving up through a bubble of any kind you're going to ultimately be left standing there with your hat in your hand because the reality is on 420 if you think it's going to the moon and it drops and you bought in

. >> be who they unapologetic li yu yuan, apologetically asian and just go about life how you are boredologetically asian is a movement started in 2019. >> before the pandemic and hiking reports of attacks on the asian community tom credits, the support of her parents who encouraged her to pursue her passion and dance fashion designer is the latest title to her name, her dance for line launched right before parts of the country issued stay at home orders talking is living in new york city under contract with complexion is contemporary ballet, a place that allows her to travel the world showing passion for the arts and music. i want to be mentor for young asian american dancers. >> i have to be their inspiration. i want to make a change whether it's in the world modeling world or my new arise. a dance pro nor fashion designer. >> amazing. that was gail ong reporting for us. be sure to join kron four's gayle ong and will tran for a 30 minute special. it's going to air sunday night. may 30th at 06:30pm so tune in for the news at 6 and then you watch that. i know. all right. coming up here