tv Bloomberg Daybreak Asia Bloomberg April 4, 2021 7:00pm-9:00pm EDT
d ght in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) haidi: good morning. i'm haidi stroud-watts in sydney. we are counting down to asia's major market open. kathleen: i'm kathleen hays in new york and welcome to "bloomberg daybreak: asia." the global economy might see its fastest growth in more than a half century with the u.s. and china leading recovery but the imf warned prospects are diverting dangerously.
republicans pushback against president biden's massive stimulus program saying it will hurt american jobs. they want a plan scaled-back by more than two thirds. japan could be ready to expand its state of emergency to contain virus infections. the prime minister says all possibilities are being considered. haidi: let's take a look at how we are shaping up with this very -- this holiday seeing a quiet start to the week. sophie: a lot of markets in the asia-pacific closed for the easter break, but japan and korea will come online later. nikkei futures pushing higher and building into this week, wti coming under pressure after the opec-plus decided to gradually ease supply curbs. that's the wrong ticker, but that's ok. inflation remaining key at the start of april. after the jobs report, holding
onto gains in the wake of that. treasury futures we are seeing higher, even after we saw the 10 year yield breach 172. there are bets on higher u.s. yields and stronger dollar which would be good for. em assets em central banks cautioned to get ahead of the curve. the rbis and the rba are up to bat when it comes to policy decisions. the aussie dollar holding around 76 ahead of that where we saw in february as the governor has pushed back against market pricing. pulling up the chart, alongside chinese inflation data this week, we could get credit from the mainland as well as soon as friday. the prospect of tighter liquidity, further on chinese stocks, we saw them cap the first quarterly drop in a year, continuing to lead emerging-market peers on the chart right here.
kathleen: thank you the imf, world bank annual spring virtual meeting started today with a warning that prospects are "diverting dangerously" with the u.s. and china leading the recovery and europe and emerging markets lagging. the service sector pmi figures for march will be in focus tuesday. on wednesday, the federal reserve will release minutes of the last meeting with investors looking for any fresh comments on inflation. we have a rate decision from india's central bank wednesday as well. with a look at this for week, we are joined by katrina ell, economist for moody's analytics. let's do this in order. i want to start with the imf world bank spring meetings. a big thing bloomberg has looked at is this diversions the imf talked about -- divergence the
imf talked about. looking at yields rising and may be central bank tightening indicated in advanced economies, people are concerned about what it means for emerging economies and markets. >> i think we have to take a step back and recognize we are in a much better position and the global economy -- it's in a better place than at the height of the pandemic this time last year. while there is some divergence of performance, we are still seeing on the whole, the global economy getting back on track and that includes economies across the globe. we will see stronger demand and investment spending up again and that will be good news for all economies. we are particularly seeing this in the asia-pacific where the vaccine rollout is troublesome
and inflation is high. other economies like australia are getting back much quicker. kathleen: for the emerging markets and certainly the countries you talked about, we saw pmi's across the asian region continuing to move higher. to a certain extent we can say u.s. stimulus, more demand, it helps china and helps them demand more from their neighbors, and at the same time emerging markets are lagging on the vaccine rollout. who is winning the push and pull here? >> it is difficult to tell. if we go back to the philippines, we can see because the vaccine rollout is taking it's time with the resurgence of local cases, we can see if we are looking at the region, a place like the philippines would be concerning and that would be an economy that would keep us up
at night, whereas other economies like thailand and malaysia are in a better position even though they are geographically further from the philippines. what it comes down to is how well the covid infection and how well covid economies can move past that peak and that is the key ingredient that will hold them in good stead throughout the next year where conditions are supposed to be much better than last year. haidi: looking to the rba meeting, this week's policy decision, with depreciation in the aussie dollar as well as bond yields coming down from tantrum levels, how much of a risk to the growth outlook is the fiscal pullback with the removal? >> we would say that's one of the key risks to australia's economic recovery. while the economy can stand on its feet again and we have seen
the worst of the pandemic past in australia, we don't know how the well the economy will stand with the unprecedented fiscal support it enjoyed after the result of the pandemic. domestic demand ticking up is still a risk that if confidence doesn't follow it from businesses and consumers, we will see -- while that's not a base case, it is still a key risk. haidi: does that confidence going to be fully rebuilt with that vaccination pace missing? it seems unlikely that october deadline to reopen borders will happen. >> what's important in australia as well is the number of local infections we've had is very low, especially compared to europe, the u.s. and other areas as well. the need has not been a strong
to curb local infections so that's why we are not as concerned about the slow and pace of vaccine rollout compared to other countries. kathleen: in terms of the philippines, i would like to come back to them. they have inflations rising. it seems like central bankers around the world have the same thing. inflation increases will be transitory. we will keep this accommodation in place. will that work by the -- for the philippines? >> we think that the philippines will look through the elevated inflations they are experiencing just because there are large gaps and economic management at home trying to bolster domestic demand in greater priority than trying to bring down inflation. unless they can really get the covid management under control and curb infections and bolster
infection demand as a consequence, inflation is going to falter again. it's a battle cash balance really and a difficult game to manage both elevated inflation in the philippines and the covid rate, but we think managing the local infections will call inflations. haidi: i hinted this with my last question but is the resumption of international travel at the reopening of australia's borders for example not as important for any of these countries as the domestic demand side? >> i think it varies depending on economy and particularly southeast asia, where tourism is a large part of their economy, for example. indonesia, philippines, thailand even.
they really do need that tourism to come back and before they can really start to close the never -- negative outlook after they were experiencing this for over a year and until we see international borders reopen, they will continue to underperform even if they do get domestic demand. without the sector underground role, they will continue to -- under control, they will continue to underperform. katrina ell from haidi: haidi: moody's analytics, we appreciate it. let's get to karina mitchell. karina: good morning to china has set a target of vaccinating 40% of its population by the end of june. that's about 560 million people. as part of the rollout, beijing is pushing communist party members and staff at state owned firms to get the shot. they are now administering an average of 5 million doses a day
. mumbai has instructed all private offices to work from home through april amid another surge in virus cases there. all nonessential services including malls and places of worship will be shot -- will be closed. one of the states has accounted for 57% of new infections and 47% of deaths in the country over the past two weeks. france reported more than 80,000 new infections over the weekend as the country entered the third nationwide lockdown. cases have been surging since september and part due to contagious variants of the virus, forcing president macron to extend regional curbs to the country. the death toll is at 96,000 people. delta airlines canceled about 100 flights due to shortages, forcing the carrier to open up middle seats sunday and monday a month earlier than planned.
it was aimed at increasing passenger capacity to accommodate flyers affected weather cancellation. delta says it flew over one million passengers in the past few days, the most in the pandemic era. 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'm karina mitchell. this is bloomberg. kathleen: thank you. still ahead, president biden calls vaccines a moral obligation. more on his easter plea, next, with cases in the u.s. set for the biggest rise since february. plus, we hear from a hotel operator in japan continuing to expand during the pandemic. our exclusive interview with the ceo of hoshino resorts, later. this is bloomberg. ♪
haidi: president biden says vaccinations are a moral obligation. the easter message comes as the u.s. is set to report the most infection since the end of february. with easter and the long weekend, as well as spring break, there were concerns about these elevated infections. are there concerns people are getting complacent, hence the message from the president? >> yes, i really think so. as you know, covid 50 -- fatigue is all around the world, certainly in the u.s. we have heard anecdotally about people partially or fully vaccinated who are going back quickly to their regular sort of lifestyles and it might be a little too soon. we've heard this from dr. fauci that we just have to wait a little while and be very careful, especially since there are these faster spreading more
infectious variants. those have quickly become the dominant variants over the u.s. in the last several weeks. we heard from michael osterholm, one of joe biden's covid advisors today, that we are seeing more infections in younger people who have not had the chance for a vaccine yet. we talk a lot about the struggle between rising vaccination rates, and we hit a couple days recently of 4 million vaccines in a day and we think we can hit up to 5 million. that is a plus. the minus is we have a more infectious strain. it's been a battle so it looks like they will continue for a while. but we have optimistic news from people like scott gottlieb, who said we might see a full fourth wave. many times the u.s. follows trends in europe, but because of
that fast vaccination rate, there is certainly optimism around. kathleen: speaking of battles, it looks like this infrastructure plan the president has proposed will be getting major pushback from republicans. senator roger wicker from mississippi on one of the sunday news shows had this to say. >> what the president proposed this week is not an infrastructure bill. it is a huge tax increase, for one thing. it's a tax increase on small businesses, on job creators in the united states of america. kathleen: depending on what side of this you are on, you might childcare and electric vehicles are infrastructure, and other people might say, how broad are you making this? how is this playing out on capitol hill? >> we heard from senate republican leader mitch mcconnell thursday saying we
will not support this and not support tax hikes. so it looks like the democrats are going to try and come up with a legislative strategy and pass it with only democratic votes. there are some democrats who think it is too much. some think it is too little. there's going to be a lot of strategizing and arguments about what infrastructure really is. certain republicans say they can support an infrastructure plan, and what he think this infrastructure like potholes, fixing roads, airports. but the other democratic priorities, he seems -- sees as small spending and necessitating tax hikes. so i think we will see more in the next few weeks. congress is off this coming week, but i think democrats in congress and the biden administration will be thinking about what we need to do.
we did hear from the u.s. energy secretary saying that once again we would like to have bipartisan support. when the white house talks about bipartisan support, they mean rank-and-file republicans in the country as opposed to republican lawmakers. i think it will be a hard ask to get everything through congress in the current form. we heard about reconciliation through the stimulus bill months ago. i think that is something again passing with a democratic majority, but even that will be difficult. kathleen: you have us ready for it now. roz krasner in washington. let's get on the $2 trillion plan. the labor secretary spoke to bloomberg about the impact on jobs and the economy. >> i think we can reinvigorate labor with this but also the entire american economy as we
move forward here with the american jobs plan. inside that bill, there are lots of components to get america back to work, to add to the news today, but also rebuild america with infrastructure, climate resiliency, climate change, clean water, racial equity in the care economy and caregiving economy. there's a lot in this. labor should be happy with this plan, but not just labor, the american movement. america as a whole should be happy with this plan because it's kind of the next step from the rescue plan and we saw benefits with good economic policy, a competent vaccine plan. it's about tilting momentum. a year ago today the secretary stood where i am, talking about job losses from the previous month because of covid-19. one year later, we are coming back and we will come back stronger. with this american jobs plan, we
will come back stronger in the country. reporter: there's a question here going forward about whether we have the labor required to fill some of the roles we are looking to build out. i'm thinking infrastructure in particular and manufacturing but we see job openings continue to increase and not necessarily people getting hired. how are you bridging the gap? where do you see immigration or unions playing into that particular issue? >> first and foremost, we still have almost 8.5 million americans out of work. there are also other americans who have not been in the workforce in a bit. it's about encouraging those folks to come back. and we need to have a conversation about immigration. the city i was mayor of, we have a lot of biotech companies and colleges and universities educating not just kids from all over the u.s., but from all over the world. those are conversations we will have to have and the biden
administration is going to have them and i will have them at the department of labor as well. it's about creating good opportunities, the middle class, strengthening the middle class, and it needs to be an all hands on deck approach. reporter: does this labor report, because it was so good, make your job more difficult to lobby for the $2.25 trillion plan? >> it was good, but we are talking one snapshot. we still have a lot of concerns. covid has not gone away yet. there are other variants popping up in different places. so we will take the victory or encouraging news, but we still have a long way to go and we are not anywhere near where we were a year ago. actually i should say a year ago, month ago. haidi: improving economy paired with unprecedented spending has -- how far are we with a sustained bounce and inflation?
we are joined by david inglers. s. no pressure, but to ask this question, we have the gentle boom with improvement in the labor market but not necessarily wage as part of that piece. david: that's the key part to all of this inflation moving up. a good way to look at this is yes, we are getting an improvement, and that was a great interview just done right there. 900,000 jobs, but still 9 million short as far as payroll compared to when the pandemic hit. you have saudi's hiking oil prices which is pushing inflation through. one relatively simple way of looking at this is looking at outlook gaps. to what extent is the u.s. and global economy actually operating at near or above
capacity? we are looking at imf data that tries to estimate that. the projection of 2021 is still deeply negative. the title of this underscores the point that balance of inflation is not the same as sustained inflation. particularly demand for inflation, when you get aggregate demands picking up. we will use the u.s. as a good example. the u.s. is being pointed to as the economy apart from china leading the recovery. we are not even close to potential from the u.s., despite the fact that we might get 7.7% growth, the estimate from our economists at bloomberg economics. it's a different chart, but the samec. we are looking at the u.s. this is the projection of the u.s. congressional office of output gaps. as you can see, the projection is deeply negative.
archaea goes capital -- arch egos capital. the swedish retailer corrected what chinese authorities called a problematic map on its website but the move that angered vietnamese customers said the changes in french on their country's maritime -- changesinfringed on their country's maritime sovereignty. -- the map changes infringed on their country's maritime sovereignty. this is bloomberg. ♪
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first word headlines in a moment. >> australia's best and allies to maintain peace in the region. in an interview with sky news, dotson added us to really would like to collaborate with china but it does not support the militarization of ports are using foreign influence on cyberattacks. he was appointed for minister last week. saudi arabia it raised oil prices for its main market of asia in a sign of confident about the region's economic recovery. state energy from aramco will increase its key grade for asia by $.40 per belt while keeping prices for europe the same and lowering prices for the u.s.. the decision comes as opec plus agreed to boost daily crude production by 2 million barrels per day between may and july. suez canal 30 say the backlog of hundreds of ships cost by the massive container vessel that ran aground, has now been cleared. the last 85 ships passed through
the waterway at the weekend, the authority said on his facebook page, adding the operation demonstrates its ability to manage emergencies. a total of422 ships have passed through the canal since the ever given was freed. spain is about to embark on one of the biggest chance as to whether a four-day workweek can be amended without harming the economy. the prime minister will pump $59 million into the three or nationwide program, testing a 32 hour workweek. an amounts to spain's biggest cut in working hours in one century. about 200 and players are expected to voluntarily sign up for the program, due to start in the fall. global news 24 hours a day on air and at bloomberg quicktake. chinese sanction -- --powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. ♪ haidi: china and south chris said they will work together to denuclearize the korean peninsula. top diplomats for both countries
said they will seek a political solution to the pyongyang stand of the u.s. and this is likely something that will come up when japan's prime minister yoshihide suga meets with president biden in washington this week. joining us, an analyst at the rand corporation. anything surprising to about these talks on the positioning eight side took? >> not at all surprising given we have already seen a preview, as to how the u.s.-china pivots is going to be affecting the original dynamics and may be the region. the foreign minister of china mentioned the south korea meeting was timely. i think that was intended for a particular audience, the united states. we do have to ask, where, not just for a washington and beijing are situated, but also the difficulty and positions of other countries dealing with both security interests as well as the economic interests.
haidi: in terms of the alliance we can see starting to form under the biden administration with south korea and tokyo, is there anything significant about the language from this meeting, that suggests the different positioning by the parties? >> sure, so i think we were nabiullina bit surprised that the denuclearization did not include either north korea or the korean peninsula. i think that shows come of course, the hesitation on the part of certain parties, to come out and actually to single i guess, to point out north korea, as the country that needs to be denuclearize. but also think this gets at the, perhaps the implicit or unset friction that exists among the parties, about the next steps they need to take with respect to north korea. kathleen: so, what we know about joe biden's position here? we see antony blinken coming
down off a plane there. and his team, what are they likely to push on here? >> so, the readout, as i am sure you have seen, is pretty generic but it does continue to stress the full implementation of the sanctions. that also talks about of duckies -- abductees, which i think represents japan's position. what we can expect this divided administration will not do summits with north korea. even though we did not point out north korea denuclearization, i think that is still on the table. so, from the perspective of north korea, i do not think kim jong-un is going to think or rest easy, that dealing with united states, and 2021 and beyond, is going to be as much a cakewalk as it was, back circa 2016 and 2020. kathleen: when you look at that you put a colchester board, how important is this question of
north korea, and this kind of u.s. versus the key powers in asia getting together and talking. is this something that joe biden can leave on a back burner and figure it will not really change too much either way? you see any critical issues that are going to need to be addressed? >> so, of course the most critical issue is going to be the north korea denuclearization issue. but i think also, that since we are stressing the importance of alliances and partnerships, that intel's of course that we are going to have to try to counterbalance that china affect -- effect. given the interest and regional presence of china, it is going to continue to be calculated in the minds of sick, seoul -- in the minds of, say, seoul and tokyo. the most pressing issue will be north korea. but i think alliances and partnerships as stressed by the bonnet administration is going to be a creek affect factor or key ingredient, -- by the biden
administration is going to be a critical factor or key ingredient in solving problems. kathleen: more broadly when you look at the asian region, what are the biggest issues for the biden team, looking ahead? >> well, i think we should start looking at, how the countries are also still dealing with the pandemic. i think united states is in a more fortunate position, where we are seeing the slow and also continual rollout of vaccines. take the example of south korea, where we are still not seeing the majority of the population receiving the vaccines. that is going to play a factor in their national and foreign policy decision-making, so that is going to be important. in terms of u.s.-china competition of course, it is not a bilateral issue simply, the stakes, the economic stakes, the policy interests, as well as i think some of the personal leadership agendas that the countries, and south korea and
japan, are also going to want to push forward. so keep also in mind that the south korean president is nearing the end of his term. that is not going to give come of course, much flexibility, i think, in the way of advancing progress in relations with united states, or trying to counterbalance the china factor. so it is a new term for biden, but we are also dealing with a south korea administration, that is pretty used to, you know, pushing forward with policy, focusing on some of the damascus issue that are still a challenge to the leadership. -- some of the domestic issues that are still a challenge to the leadership. so i would stress of the covid vaccine and pandemic will be a big factor. also the regional considerations, and we have to try to get the regional actors, as well as countries in the indo pacific, to either -- we cannot force them to make a decision, obviously, but perhaps united states could offer, you
know, not policy incentives, but at least try to show parties who are sort of on the fence about, choosing either side, i would say, to see the value, and i think, the benefits, of a free and open indo pacific, as opposed to some of the alternative solutions that say, china or russia are trying to initiate. kathleen: thank you very much, an interesting overview of what to expect. policy analyst at the rand corporation. coming up, a japanese hotel operator is pushing ahead with expansion plans despite the collapse of foreign tourism, and we hear exclusively from the ceo of the company, next. this is bloomberg. ♪
kathleen: japanese hotel operator hoshino resorts is remaining positive despite a huge drop in foreign visitors. the company open for new properties in the past year and plans three more in the months ahead. that ceo spoke with bloomberg about his ambition to bring japanese hot spring resort to the u.s. >> the market is coming back, especially, we are very confident, because of the experience we had last year, between april to june last year was awful, the worst, but
actually the market came back very strongly during the summer and fall. even during this pandemic we knew the third wave was coming, but between the second wave and third wave, demand was very strong in the tourism industry in japan. if you look at the total consumption, tourism consumption of japan, $250 billion u.s., 85% of japanese people traveling to japanese local destinations, so we have a huge market in japan. the inbound is only 15%, but outbound was big. and outbound people now coming back to japan and visiting japanese destinations, the loss of inbound was not, in this growing market, we want it, but was not very big, you know, the damage, during this pandemic, for us. >> as you build up plans for 2021, you have new resorts coming online.
much of it was probably planned in anticipation of the olympic boom. how bad does the dynamics around the olympic delay, and potential cancellation, have on your business? >> we cannot have any foreign audience for the tokyo olympics this year. i think you liv-ex is taking place. -- i think the olympics is taking place. but the damage we have is mainly in hotels and tokyo. we did not really expect a huge audience of a lithic audience going to other regions of japan during this -- a huge audience of olympic audience going to other regions of japan during this three week event. i'm sure hotels being built in tokyo the last three years will probably have a very this appointed. and we are also disappointed, because we do manage some hotels in tokyo. but the rest of japan will not have any big negative impact.
>> you have 43 to domestic properties, and three overseas. hawaii, bali, and taiwan, and soon to be china. what ratio would you like to see, and where next would you go, outside of japan? >> right, we are getting inquiries from many investors and real estate owners in asia. but my personal goal is to bring the japanese traditional, very traditional hot spring's resort in north america, the united states, canada maybe. there are so many hot spring resources in the united states. and we now know that they really like the japanese cuisine, and our tradition and culture, and the hot spring experience. so we are specializing in that field. we do not want to manage regular
hotels and other countries, we have to be some japanese taste to go overseas for us. >> so when will that be in north america? i would assume if you are talking about hot springs you are talking about the rocky mountains, so utah, colorado, idaho, perhaps into british columbia? >> we have been talking to people who have interest in working with us as investors, and developers. in the u.s., the western parts of the united states have a lot of hot spring resources, but the east coast does have some hot spring areas, saratoga springs, very traditional, nice destinations, near new york, boston, big cities. so those are target areas where working on. -- where we are working on. haidi: that was the ceo of
hoshino speaking with our correspondent stephen engle. japan's emergency 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 is, variation e4, which first surface and the u.k. has been found in new infections in japan. one tokyo hospital reported 10 out of 14 being the new variation. keep in mind as well, in japan, large-scale public vaccinations have yet to begin. so they are facing this fourth wave of virus spread, without the safety blanket if you will, of mass inoculations, yet. kathleen: 10 weeks after the first case hit south korea, how
is the situation looking now? it seems it is getting a bit worse? >> yes, it is. one, we are coming out of winter into warmer weather in the spring, in seoul and surrounding areas, so more people are out and about. and there is concern because they have had 500 and infections in south korea for five consecutive days. the latest numbers, 543, for new deaths and 514 of the 543 are considered to be local infections, so that is a concern. the government is considering, if those never do not come down and they get the daily never set the end of the day through midnight, if the never's not start coming down, they alluded to the fact that more social distancing and closures will happen this week, including restrictions of business activities. again, more people are out and about and going to work, and in the streets, and that is perhaps causing more of a spread in south korea. kathleen: thank you so much, error cheap enough asia correspondent stephen engle.
we are joined by the world bank chief economist carmen reinhart and the philippine finance secretary, carlos to make estimate later this week. now a quick check of the latest disney/headlines. personal data -- person that latest business flash headlines. facebook struggling to protect users personal data. facebook issued this leak includes users fun of her's, locations and birthdates -- phone numbers, locations and birthdates. tiktok parent bytedance said that a freeze on his bank accounts is harassment according to reuters. tax authorities ordered hsbc and citibank to freeze the bytedance accounts in a probe in his financial dealings. the chinese company says the move was without material evidence and gave no notice as required by indian law. let's move to the movies, godzilla versus kong to the
largest crowds to theater since the start of the pandemic, with $32 million in north american ticket sales between friday at sunday, and nearly $49 million over the five day good friday holiday. domestic sales were double that of wonder woman 1984, amid pandemic air ticket sales, down 85% you're on your. -- year on year. e to tune into bloomberg radio to hear from today's newsmakers and get analysis from the daybreak team broadcasting live from our studio and hong kong. lesson from the app radio plus or bloombergradio.com. -- listen from the app radio plus, or bloomberg radio.com. this is bloomberg. ♪
kathleen: japan and south korea open at the top of the hour. in japan pmi data out in the next hour, final readings for the march composite surveys are due. plus on the vaccine front we will watch for response from tokyo after vietnam asked for help with accessing vaccines. the u.s. and eu are also being called to help. finally, potential progress on supply chain shortages. the nikkei reports japan and washington will agree to build a semiconductor supply chain later this month. in korea, lg electronics in
focus, local media are reporting will hold a board meeting to decide the direction of its mobile business. the covid case tally is due any moment. star growing concerns of a spring resurgence. we will watch big hit entertainment when it starts trading. the korean company launched k pop sensation bts and now it is find media group behind justin bieber and ariana grande. haidi: bridgewater associates co. chief investment officer bob prince says there is more potential for invest -- inflation under the current fed policy, and says it will ultimate compromise the central bank's ability to push more of its policies. >> there's a lot more potential to create inflation through this type of a policy, because you can literally put money into people's hands to go spend, right? and you can choose whose had to put it in. so, there is potential for inflation. but the question is, inflation of what?
so, you have already had inflation of asset prices. and the qe2 world, the qe world was inflated assess prices a lot -- asset prices a lot because that is where the money went. whether we have a secular rise in inflation, it depends on a lot of other forces. it is not just a u.s. question, it is a global question. 80% of countries around the world have an inflation rate of less than 3%. central banks have been very successful at bringing down inflation over the last 40 years. globalization has reduced the cost of labor and kept it there. so you had low inflation and stable inflation as a global phenomenon, not just the u.s. phenomenon. so if you are going to have a rise in inflation it would probably have to be global. other countries are not stability to the extent the u.s. is, particularly china is in sort of a steady state. on the other hand, any given countries inflation rate can also be impacted by their currency.
so if you had dollar depreciation, that could raise u.s. inflation rates relative to other countries and freshen rates and it would be deflationary for other economies -- it could raise u.s. inflation rates relative to other country's inflation rates and would be deflationary for other economies. the thing that we can say, is a, more potential and be, the existence of inflation, will be one of the key constraints on whether the mp3 world, and what the fed will continue to have the latitude, to pursue these policies. without inflation they have a lot of latitude, as well as the government, to continue these policies. but with inflation, and with inflation and currency depreciation, they start to hit the road and constraint. kathleen: that was bridgewater associates co. chief investment officer, bob prince. let's get back to sophie kamaruddin for important stocks to watch. sophie: we are watching asian ev
names after tesla delivers and the first quarter helped beat forecasts by strong demand in china for the model why in particular. keep an eye on kakao, reportedly seeking to bite fiction app radish or $350 million. we are keeping an eye on japan's merkari, it's unit planning to register as a crypto exchange service after starting operation this year. the e-commerce company planning to allow users to receive payment in bitcoin. another company halting production in japan as a global chip shortage hits, four suzuki. haidi: coming up, venture capital firm b capital, tells
us how much they'll be allocating when it comes to the firm's first investment in the country. pluskieran calder few market opens today. japan and south korea are coming online. and we do have the market open in tokyo and seoul, another major markets -- a number of major markets across the region including australia and new zealand in hong kong and mélenchon are closed for public holidays. this is bloomberg. ♪
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daybreak: asia." asia's major markets have just opened. the imf sounds a warning about global growth saying an economy could see a dangerous diversions as china and the u.s. lead -- leaf the euro area and some asian markets behind. japan could expand lockdowns to contain the virus and the prime minister says all possibility's are being considered. asian markets are looking at modest gains cross trade. most regional benchmarks are closed for holidays. japan acree are set to a positive start for the week. -- japan and korea are set for a positive start to the week. sophie: we are seeing great shoots in japan after the nikkei to do five cap to fourth quarter of gains. the nikkei led higher by chip stock so far tokyo electron an event is climbing. -- avantis climbing.
the u.s. and japan looking to corneille link semiconductors. holding about the 110 level as speculators build short position against the currency. jgb, sing a move to a downside ahead of a 30 year sale on tuesday. switching out the bar check at the open and south korea, the kospi and the deferred court -- first quarter about 3000 points -- ending the third first quarter about 3000. the korean won this morning losing steam given the dollar has been gaining on the back of the u.s. jobs report friday. in south korea watching to reaction look at me to reporting the government may introduce a 40 year mortgage as early as july. in australia markets closed but the currency is trading, at of the rba decision tuesday, which has home prices and focus given the jump we saw in housing last week. ahead of that the aussie dollar holding above 76.
treasury markets in focus, the u.s. 10 year yield pulling back after reaching 172 friday, now around 169. keeping a close eye on five year yields moves on treasuries as it nears the 1% level pulling back from that for now. td recommending buying the 10 year, with them saying markets are overpricing the risk we may see an early rate hike from the fed. the offshore yuan holding, cnh cap losses last week. the onshore rate saw a seventh weekly decline. policymakers in china are looking at the depreciation or comfortable also allowing for capital outflows. kathleen: our next guest, as markets are position for reopening a recovery. karen calder, head of equity research for asia. welcome, you are bullish on
equities, overweight the u.s. and china. did the u.s. jobs report friday, more created, today it increase your bullishness? >> i would say it is a positive catalyst, of course. if you have been bullish, march was a tough month but now that we are heading into the second quarter earnings season, also we will get the second-quarter economic releases from, particularly from china, i think we are heading for a very positive start to the second-quarter. so i would not say it is our increased are bullishness but it confirm the case, which was we had to hold on during a tough march. kathleen: so if you are going to stay in equities and try to add to your position, what would you go into? you like tech a lot of people
are cautious because and has been purchased so much and gone up so much, or, particularly if you look at china, because of the concern about the government tapping down on tech companies more -- tamping down on tech companies more? >> certainly in tech in particular we need to be selective. we like some sectors within tech. we like level semiconductors. -- we like global semiconductor so you will start to see preliminary numbers coming out of big asian company samsung and tmc later this week. we also like the merger of tech and health care, now called health care i.t., where you have a large inefficient sector, health care, exploring ways to take out costs and lower costs, through application of technology. so we definitely think we need to be selective than tech. if we talks passivity about china, it is not -- if we talk specifically about china, it is
not for us it is a pretty civil trade, they were first in -- a pretty simple trade that they were first into cobit and will be first out of covid. so -- of cover 19, -- they were first in and will be first out of covid-19, so for the first quarter you will see it be significant and that should pull along economic numbers. of course one of the risks is the central government, is, i would not say try to clamp down, but trying to put more regulation rout large tech platform players -- regulation around large tech platform players, which may impact investment opportunities into other sectors. but i don't today are trying to take anybody out of business at the moment. haidi: i am reading through your notes and it seemed you seem sanguine when it comes to inflation upside -- looking at outflow gaps and difference between inflation surprises or
reflation surprises and sustained inflation. the top panel is the i messed projected output gaps for advanced economy and the bottom is the city level economics price index. you can see with that comparison there's a fairways to go when it comes to sustained inflation indicators. as the market over doing it on these expectations? what opportunities you see? >> we would say the market is a little bit too focused on what is likely to be transitory inflation, scare perhaps over the summer. again, it is partly to do with base effect from last year. against that, the fed is going to have to you know, be pretty active come i think around language that they're willing to look past transitory inflation and willing to look past longer-term inflation above 2% as long as it is not too far ahead. until they start to look at rising rates. i think we are definitely heading into and inflation scare
situation over the summer. but our expectation is it will be transitory inflation and it will hold the line with at least -- ustr where it is now. so we could see u.s. treasury possibly push toward 2% over the summer, which of course, we are now starting from 1.7% rather below one which was dutch 1% which is what we saw the -- rather than below 1% which is what we saw the first quarter of the year. haidi: chinese stocks lacked emerging-market peers in the last quarter. there are indications they could live for another quarter. are these concerns over shrinking liquidity something that bothers you? what are you opportunistic about in that space? >> i mean, we are opportunistic globally around reopening and recovery. beyond that china is going to
lead and probably provide the template for what is likely to be subsequent quarters out of the u.s. and parts of asia, and later, europe. so that is our basis for our positive you on china. i think if you look at the first quarter, it was a week quarter for equities, not as strong as the last few quarters, and for china in particular. you have to look at where came from. china had a pretty good fourth quarter. we think we are set with results [-] and the reopening and recovery trade, to see a better second-quarter certainly from china, and particularly domestic china. kathleen: are you concerned about any real financial stresses in the emerging markets? is this going to be a big theme at the imf world bank meetings this week, that could be exacerbated by recovery in nations like the u.s. and china, so there is pressure on summer banks to raise rates? or capital outflows?
even if you are not going to invest in those countries, is that the kind of thing that could cause a water for investors this year? -- that could cause rough water for investors this year? >> i heard reporting the imf is saying it is going to be a divide between the recovery and reopening in the u.s. and china and that is going to leave other em markets behind. of course there is an that is partly to do it indications of china a quick reaction to covid-19 closing things down. and in the case of the u.s., ultimately, pretty quick raw of the vaccine, which i think is -- pretty quick rollout of the vaccine which i think is probably contributing to what we are seeing now, in terms of the big job numbers friday. so, absolutely. and there's going to be a divide between the u.s. and china and it is part of the reason why we want to focus on u.s. and china.
maybe down the line there is room for, as other markets, particularly other em markets, get serious about cobit and react -- serious about covid-19 are available, that may be a trade later this year, but at the moment we definitely feel it is u.s. and china. and even u.k., is doing a pretty good job and we probably would see some positive momentum there as well. haidi: great to have you. we will also discuss the global recovery when we are joined by the welding chief economist carmen reinhart, and that philippine finance secretary later this week. let's get you to karina mitchell with first word headlines. >> in europe, france reported 80,000 new infections at the weekend, as a country entered of their nationwide lockdown. cases have been surging since december in part due to mark contagious deadly or variants of
the virus for ching the president micron to extend regional curbs to the rest of the country. france's death toll stands at 96,000 people. mumbai instructed private offices to work through home -- from home through april. all nonessential services including malls and places of worship will be shut monday. the restrictions come as india's case count heads towards 100,000 per day. maharashtra state accounted for 57 percent of new infections and 47% of deaths in the country, over the past two weeks. china set a target of vaccinating 40% of its population, by the end of june. that is 560 million people. beijing is pushing commonest party members and staff and stayed on firms to get the shots. the country's inoculation efforts has stepped up and it is now administering an average of 5 million doses per day. saudi arabia it raised oil
prices for its main market of asia, and a sign of confidence about the region's economic recovery. state energy from aramco will increase its key great for asia by $.40 per barrel while keeping prices for europe the same and lowering prices for the u.s. the decision comes after opec plus agreed to boost daily crude production by more than 2 million barrels per day, between may and july. global news 24 hours a day on air and at bloomberg quicktake. chinese sanctions --powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi: we do have breaking news. berkshire hathaway, a potential yen benchmark bond deal a few days ago, they have returned to the market with a yen denominated bond. this is yen bombs in a multi- -- bon -- yen bonds in a
multi-tranch offeringe, amid reports and have bought shares of japanese companies and could increase stakes. that is according to die was securities. stakes in -- daiwa. stakes in several companies over the past 12 months. so it makes sense they are returning to the yen market with a multi-transient offer -- tranche offering. kathleen: b capital is making its first foray into china, telling us where and how much they're looking to invest. up next, heads to roll credit suisse, high-profile executives in the firing line as the bank battles the archegos fallout. this is bloomberg. ♪
reportedly weighing changes at the c-suite level in response to the collapse of archegos and greensill. the chief risk officer may be among those shown the door. david, tell us more about this potentia >> it looks like this is a bank with a risk problem. my colleague patrick winters pointed out it looks like the bank may be making changes in the focus is on the chief risk and compliance officer. it has been a tough year for this bank. there were getting over the greensill fund debacle another dealing with archegos. there is no bank in the world that will be hit as hard as credit suisse. you're looking at roughly 3 billion swiss francs, in losses possibly from archegos at another 500 million from greensill. it was a holdover from -- the risk officer was a holdover from
the prior era, who and another manager was promoted, and it is clearly not working. kathleen: the scandal has not -- this result has not had a good effect on the bank stock, can't be salvaged? >> it is clearly taking ahead, now the worst bank stock in the world your today if you look at the big banks, it is down 11%. you contrast that with the archrival ubs, up 19%, clearly suffer but there is more and there may be pressure on dividends which are sacred out in a low yield world. there is also concern perhaps the 1.6 billion swiss franc buyback is at risk as well, and it has already been paused. things are piling up in a bad way for credit suisse right now. haidi: speaking of piling up, credit suisse obviously is one of the worst affected but asian
banks are not immune either. there are at least three japanese letters affected now? >> yes, that is right. it shows the extent, when you're dealing with a fund that has so many counterparties in this market. there has been a lot of fallout, and there may be more, this may not be done. j.p. morgan is putting an estimate of $10 billion impact for all of the banks. and the japanese are right up there. haidi: david scanlon, thank you. kathleen: that was bloomberg's david scanlon look at credit suisse. hoshino resorts pushing ahead with expansion plans despite the collapse of foreign tourism. we are exclusively from the ceo of the company, next. this is bloomberg. ♪
haidi: you are watching "bloomberg daybreak: asia." the pboc is said to vast lenders to rein in credit supply on concerns up surge in loans is feeling asset bubbles. the financial times reported banks were told to keep new loans in the first quarter at last year's levels are lower. chinese authorities pared back liquidity injections and sound an alarm over financial risks. élan musk bet on growth in china and europe is starting to be offered tesla, the carmaker beat expectations in the first quarter, delivering 4000 cars more than in the fourth quarter. the company also said the model as annexed were exceptionally well received in china. 'tesla's orderly delivery figure is seen as a barometer for its vehicles and ev's at large. tesla sales in japan and korea are down today. delta airlines canceled 100 flights to do staff shortages over the weekend forcing the carrier to open middle seat sunday and monday, a month earlier than planned.
the move was aimed at increasing passenger capacity to accommodate flyers affected by cancellations. delta says it flew one million passengers in the past few days, the most in the pandemic euro. -- era. kathleen: japanese hotel operator hoshino resorts is are many positive about expansion plans despite a drop in foreign visitors. the company open for properties in the past year and plans three more in the months ahead. the ceo spoke to our chief north asia correspondent about his ambition to bring japanese hot spring resorts to the u.s. >> the market is coming back. especially, we are very confident, because of the experience we had last year. between april to june last year was awful, the worst. but the market came back for a strongly during the summer and
fall. even during this pandemic, we knew that the third wave was coming. but between the second wave and third wave, the amount -- the demand was very strong and tourism industry in japan. the tourism consumption in japan at two and a $50 billion value, 85% is japanese people traveling to japanese local destinations, so we do have a huge market in japan. the inbound is only 15%, but outbound was big. out that people now coming back to japan and visiting japanese destinations, really the loss of inbound was not, it was a growing market of course we wanted but it was not very big. not very big damage during the pandemic for us. >> as you build out plans for 2020 when you have new resorts coming online. much of it was probably planned in anticipation of the olympic boom, how that does the dynamics
around the olympic delay, and potential cancellation have on your business? >> we cannot have any foreign audience, for the tokyo olympics this year. i think the olympics is taking place. but i think the damage we have is mainly in hotels in tokyo. we did not really expect a huge volume of olympic audience going to other regions of japan, during this three week huge event. so, i'm sure the city hotels, many hotels being built in tokyo, during the last three years, will probably have a very disappointed. and we are also disappointed, because we do manage some hotels in tokyo. but in the rest of japan will not have any big negative impacts. >> you have 43 to mastic
properties, and three overseas -- 43 domestic properties and three overseas, hawaii, bali, taiwan, and soon come in china. what ratio would you like to see and where would you go outside japan? >> we are getting inquiries from many investors and real estate owners in asia. my personal goal is to bring the japanese traditional, very traditional hot springs resort in north america, the united states, canada maybe. there are 70 hot spring resources in the united states. and -- there are so many hot spring's resorts -- there are so many hot spring's resources in the united states and we know they like the traditional japanese culture and cuisine and traditional hot springs experience. we are specializing in that field and do not want to manage regular hotels and other countries.
we have to be some japanese taste to go overseas for us. >> bundled up in north america? i would assume -- so, when would that be in north america? i would assume if you're talking about the united states you're talking about the western united states, so utah, idaho, colorado, into british libya? emily: -- into british columbia? >> yes, we have been talking about people interested in working with us, investors and real estate developers. the western part of the united states has so many hot spring resources, but the east coast does have some hot spring areas. very traditional, nice destinations near new york, boston, big cities. so, those are the target areas we are now working on. haidi: that was the ceo of hoshino resorts speaking exclusively to our north asia correspondent stephen engle.
haidi: we are getting some breaking data crossing the bloomberg. the final march reading fred the pmi composite as well as the services data. the pmi services coming in at 48.3. that is an improvement. the second month of expansion from 46.5 that we saw in the previous month. the previous reading when it comes to the pmi for the composite number was 48.3 also coming in higher, 49.9. we have seen an overall expansion when it comes to the manufacturing side. we saw the end of the virus, the
state of emergency. now, talk of a renewed state of emergency to put icap on the latest wave of virus cases -- put a cap on the latest wave of virus cases. let's take a look at how markets are doing so far. sophie: focusing on japan as we digest the pmi data. the yen trading above 110. the 10 year yield coming in slightly. japanese stocks higher for a third session on the nikkei 225, which is back above the 30,000 level. japanese equities could outperform and the dips we are seeing against u.s. stocks could be a draw. we are seeing chip-related names in tokyo gaining ground. this amid a potential u.s. japan cooperation around a semiconductor supply corporation. turning now to south korea, the
big calendar item later this week. just up higher later in seoul. that is helping boost of the kospi. the cost be losing 2/10 of a percent with health and consumer names weighing on the benchmark. the you want yuan is -- the is under pressure. this after capping a third weekly gain. focusing on the aussie dollar, trading on the 76 handle. this as we saw the government push back against tightening expectations and the rba policy decision will be closely watched on tuesday. eking out gains after we saw the u.s. jobs report on friday. the bloomberg dollar index gaining some ground. this after it snapped a quarterly job. the u.s. 10 year yield, seeing some fluctuations after it
reached 172 on friday. the 10 year around on 170. keep an eye on the five year yield shared td securities saying you should buy into the tenor. >> that has become one of the big debates. the world economy is on course for its fastest growth in 50 years. it is morning prospects are diverging dangerously. with the u.s. and china leading the recovery, the euro area lag. let's bring in michelle for more. you have been covering this so thoroughly and hopefully. when you look at the global economy as we head into the meeting, how serious is the divergence? how do you see it stacking up? >> it is a worrisome bifurcation. as you mentioned, the u.s. has all the momentum.
march was the best hiring month since august. job vacancy data shows there is a lot of help wanted. the vaccination drive continues to be ahead of schedule. china appears to be on track. europe is disappointing with additional restrictions, sluggishness on the vaccination side including a tussle with the u.k. on how some of the doses are allocated. markets outside of asia are feeling the heat to tighten policy to keep up with the u.s. and temper inflation worries should we are's -- inflation worries. we are seeing that in turkey and russia and central banks that might have eased recently like mexico. there has been the initial message out of the stimulus package frhe. that will lead the charge. the reality is there are two downsides. it is likely to be uneven. the long-term is still quite sobering given the pandemic.
one stat that stands out is the imf projects that by 2024, global output will remain 3% lower than what was projected before covid. those countries relying on tours and will be suffering the most. -- on tourism or be suffering the most. haidi: what are the other big topics the meetings will likely a writ -- will likely address? >> one of the big ones is the vaccination drive. the u.k. versus europe debate. we are entering the worst fear a lot of policymakers had early in the pandemic about vaccine nationalism and not having the everyone benefits when everyone gets the vaccine attitude. where likely to hear a lot of talk about how to keep the peace on this issue and make sure that more doses get to the areas that need it. the other big one at the same time is the guidance on how to
keep easy monetary policy and fiscal policy as the outlook remains uncertain. we will hear now is not the time to pull back on stimulus to support economies. we might expect janet yellen to mention the biden team is supporting the withdrawal of cash reserves starting in august. that message might be most directed at europe, which is needing to boosted stimulus. -- boosted stimulus. they are feeling the pressure to tighten and stay ahead of inflation. they don't have as much leeway to experiment as the federal reserve does. this week, a lot to discuss. no easy solutions. a lot of the same things we have been dealing with since the start of the year. kathleen: and a big global stage to do it on. thank you so much.
economic council countered saying the plan is a 18 year capital investment that will expand the economy's potential. china and south korea say they will work together to denuclearize the korean peninsula. the south korean foreign minister two sides would seek a political solution to the standoff with washington. he also said the two would push for a state visit once the pandemic has stabilized. australia's newly appointed defense minister says that he intends to work closely with the u.s. and other allies to maintain peace in the region. he added australia would like to collaborate with china, but it does not support the militarization or using foreign influence for cyberattacks. he was appointed defense minister last week. jordanian authorities say they foiled what they call a malicious plot by the half to
destabilize the kingdom. officials confirm that the former crown prince was placed under house arrest after allegedly working with foreign entities. 16 others were taken into custody. the prince denies involvement. spain is about to embark on one of the biggest tests of whether a four day work week can be implemented without harming the economy. the prime minister will pump $59 million into the three year nationwide program, testing a 32 hour workweek it amounts to spain's biggest cut in working hours in a century. 200 and players are expected to voluntarily sign up for the program due to start in the fall. 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'm karina mitchell. this is bloomberg. haidi: facebook co-founder says
-- aiming to focus on the chinese tech startups. among other sectors, our next guest has been hired by be capital to run the china team. let's bring in the general partner. great to have you with us and congratulations on the new role. you were engaged earlier this year. during that time, have you come to an agreement as to how much capital will be deployed in the business? >> we don't want to discuss the numbers but we are committed to china and later in the year, we're thinking of launching a china product to address china investment. haidi: what about in terms of the overall capital allocation compared to what the total amount would be? can you give us a percentage? we are thinking in the ballpark
of one third to 40% from the global fund. haidi: what about targets? have you identified any opportunity so far? >> we saw consumer behavior changes very quickly from digital health. major adoption in china. we are looking at a leading auto parts chain retailer. it approved efficiency with data enabled approach. we invested in cross-border e-commerce leader. it enables and empowers the next generation of e-commerce participants by helping them predict better pricing. they create every bit of efficiency by employing a data driven and software defined approach. in digital health, we're looking at the aim powered algorithm that greatly shortens the cycle.
we will leverage the industry know how. we are looking into quanta code dv management and the tele-doctors base. china, you have 100 million diabetes patients. that is a huge unaddressed market. kathleen: and very important in the world. i like something you were attributed saying about your approach. gas guzzling consumer internet companies serving companies and a large antiquated industries. is that -- do they fit into that scheme? >> you are absolutely right. we see every industry can be revamped by the digital approach. in the past, you could observe
so many successful chinese consumer internet companies that make it into the list of the world's largest companies. that is just the beginning. there is a lot more value to be created. as we move further along to the earlier part of the value chain. the traditional industries are far from being digitized or connected. every labor-intensive industry could be revamped to improve its efficiency. it applies to manufacturing. it also applies to services. why do we have to buy car insurance annually if we only drive a car for two days in a week? can we dynamically price insurance policies as pay-as-you-go? the same approach will apply to personalized education, personalized health care so the world is going through a paradigm shift and we are seeing china as the frontier of this
new economy experiencing this paradigm shift from connecting to getting smarter and getting more intelligent. kathleen: there is a lot of concern in the world. you are familiar with how things work in china. this is your stomping ground. in terms of the government and cracking down on big internet companies, are you going after the kind of companies -- they are not the behemoths that would attract the reigning in by the government. >> we look at more of the growth stage company. they are still young. the big batch of companies coming up. china will continue to benefit from investors who want to understand the region and but on the growth stage companies and exposure to one of the worlds fastest growing economies. we are betting on growth stage
companies. not the dominance of giants yet. but emerging leaders in the coming years. haidi: does that mean you egg -- you spread the investment wider? >> our approach is finding global leaders and finding companies that are born to be global and we do not specifically cut the stages. we look for chinese companies going global or chinese global companies. we look for companies, not just good to the globe. companies that are born global. there are a lot of startups and growth stage companies. haidi: you have told us some of
the sectors and industries. you have told us a number when it comes to the portion of total assets under management. in terms of specific companies, are there any you are excited about? can you share with us names or any details? >> i can share one recent investment we made. what you observe in the latest e-commerce phase -- iroko investor brought us in to -- our co-investor brought us in. that was the traditional e-commerce enabler helping the international brand coming into china set up websites in the traditional way. the latest e-commerce are more diverse like a lot of the social media sellers. they are bringing a lot of traffic. they need help ticket procurement from international -- to get procurement from
international brands. it is helping these newer forms of sellers. it is more diversified. it is the new enabler helping these smaller sellers secure -- sellers seek procurement. advertising, inventory pricing and all these. it is a fascinating space. you observe how much an industry changed over the last few years. we are always looking for the newer things coming up. not only selling to the world. also selling the world's product into china both ways. it is really exciting. kathleen: thank you very much. fascinating conversation. up next, vietnam breeze shuffles
company struggles to protect personal data. facebook issued a statement saying the data was previously reported from an issue that was resolved in 2019. it includes phone numbers, locations and birthdates. bytedance told an indian court the government fee for the bank account was harassment. indian tax authorities ordered hsbc and citibank to freeze bytedance's bank account. the company has been restructuring its local team. h&m struggles and aged deepened over a map of the region that upset both china and vietnam. the retailer corrected what chinese authorities called a problematic map on its website. that anchored vietnamese consumers. -- that angered the enemies consumers. -- the vietnamese consumers.
let's turn to the vietnam twice in a decade leadership change. oversell rapid economic growth and this is tactful -- and the successful containment of the coronavirus. what is expected to happen today? >> good morning from hanoi. the official announcement on the nomination of the new prime minister for a five-year term. this will come after the voting of the new president position. the national assembly is expected to vote on the next prime minister this afternoon. the prime minister is in a sense the face of the government. he oversees the location of funds.
the prime minister is the lead investor -- the leader investors look to for the direction of the government policy. this person is the most involved with foreign leaders. haidi: tell me more about the collective leadership model. this pillar model. >> the country's leadership has a four pillar structure made of the commonest party general, president, prime minister and chair of the national assembly. these leaders govern in a consultation with 18 member board which they are part of. last week, the former deputy prime minister was selected as
chair of the national assembly for the 2021-2025 period. haidi: the handling of the coronavirus has been successful but there are other pressures, right? >> yes. virus containment and economic recovery are still among the government's priorities. the new leader is sure to reach out to the biden administration. the growing surplus has concern in the u.s. the biden evidence trajan has expressed concern.
-- the biden administration has expressed concern. haidi: a right. let's take a look at the state of trading across asia. it is a holiday muted session in this part of the world and around the world given the number of markets that are closed for public holidays. australia and new zealand closed for easter monday. the nikkei, we are seeing trading higher by 1% in tokyo as well as seoul. we are seeing the downside of a quarter of 1% for trading on the kospi. the regional gain edging higher. we have the korean yuan also seeing a little bit of weakness against the u.s. dollar. coming up, we will get the asian
outlook ahead of this week's imf world bank meeting. plus, the latest on these markets. increasing exposure to china despite the underperformance of chinese equities last quarter and expected headwinds from a liquidity crunch in the new quarter. we will also be talking to the world bank's chief economist and the filipina -- and the philippines finance secretary. that is it for daybreak asia. our markets coverage does continue. we take a look at the start of trading in singapore and malaysia. we do have mainland markets as well as trading in hong kong on holiday today. lots more to come. this is bloomberg. ♪
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