♪ >> good morning, i'm tom

mackenzie and these are the stories that said your agenda. collapse of a baltimore bridge adds disruption to trade. the latest has authority suspend operation. the yen yen is at its lowest since 1990, raising the prospect of intervention. japan's finance minister announces direct action and chinese president xi jinping meets with business leaders as tensions rise, let's check in on these markets. three straight days of losses for u.s. smart kids and five months of gains across u.s. equities. a fresh record. futures pointing to modest

losses. i focus on software iron ore prices, flat for the ftse 100. s&p gains after three days of losses. let's flip the board of course. today with a focus on the yen given what we been hearing looking at a 152 level line in the sand articulated in tokyo. 15176, a 10th of a percent and the yield differential puts pressure on the currency versus the usd. the fed ties into the story around the auction ratio is decent. the benchmark 10 year is at 423.

the pound is 126 and brent is at $85 a barrel on the back of a report suggesting inventories building out. let's see how it asian markets are faring with a hall in singapore. avril: we're focusing the japanese currency after it hit levels we haven't seen since 1990, surpassing october 2020, which drew intervention rules triggered by a japanese boj board member who is typically a hawk he said conditions will

remain accommodative. the finance minister after keeping a lid on things with verbal intervention, we have large options and potentially 152 and above could mean dollar-yen is jumping, but cheering on accommodation. japanese equities outpacing the region. it is about retail investors on the last trading day. let's take you to china, industrial profits rose, signs of stabilization, but we had troubled do you developers like

country garden. weeks sales my extended this month, so hang seng tech getting beaten up. once take you to the culprit. once the crown jewel of commerce, alibaba struggling with competition, scrapping listing and logistics plans just couple of months after saying the same for its cloud unit, investors not liking the strategy, stock is down. tom: avril, excellent run through, thank you indeed. let's focus on the story out of the u.s..

officials saying search-and-rescue has been suspended after yesterday's dramatic bridge collapse, six people unaccounted for and presumed dead. the disaster happen when a ship hit the francis scott key bridge. a call from the ships allowed authorities to limit traffic on the bridge and reduce casualties. president biden: i spoke with the county executive, united states senators and the secretary of transportation is on the scene. we want to send all the resources they need, all. we will rebuild together. tom: let's bring in john with the details. get us up to speed in terms of recovery around the bridge.

john: we will see more recovery looking for the remains of the six people presumed dead. there was a mayday stopping vehicle traffic but the china find six people and they have a massive wreck of the bridge, shipping containers dangling off of it. infrastructure is in low-water in their china find out how to get through all of this. it's devastating for the city for the people and incredibly difficult engineering problem. having a massive ship right

there. tom: talk about the implications in terms of supply chains, u.s. and global economy. john: it's one of the top 20 ports. baltimore had specialty items, the biggest for automobiles. there is a bmw and volkswagen facility so it is also a key facility for coal, steel, gypsum and the port is closed. so you will see traffic move to other ports in the u.s. which could create bottlenecks. ports could be overwhelmed. this will affect various types

of supply chains but we will find out how it will unfold because we are a few hours into this with find out where the shipping is going to go, where the cargo will be so it's a matter of finding out how they hid the ports in the u.s.. tom: john, thank you indeed. and of course potential implications for supply chains in the u.s. and globally, thank you. important meeting between xi jinping and u.s. executives as the nation shores up confidence. business leaders are gathering at the asian version of davos.

stephen engle is there. talk about the importance of the meeting with the chinese president and ceos. how significant is the meeting? stephen: well the forum as you well know is an annual meeting put on hold through the pandemic and covid zero. this is a tour of the u.s. and executives to come to china in beijing and meet with leaders, but 2700 kilometers to the south for the balaam forum. i have not been here because of covid zero so this was a get

reacquainted tour. we got wind last night that xi jinping would meet the u.s. delegation not only executives, but heck damien -- academia. blackstone's steve schwarzman was a participant and tim cook was there. albert boiler was there and the heads of fedex and show but were there meeting with chinese officials. usually they meet with the premier and this time, li qiang was sidelined just like we saw at the national people's congress. it was xi jinping who came in

today and met face-to-face with executives. tom: you are on the ground and you been speaking to leaders, are they convinced china or is making this effort? how much conviction is there that china is a place to do business? stephen: the fact that they made the effort indicates interest. companies we've spoken to, fortescue metals and pascal of astrazeneca, they've been investing due to the pandemic and years before. investing into seven different biopharmaceutical companies, in for the long haul.

they are coming to reestablish ties that might've paused during the pandemic and reassess policy because there has been opacity and they want clarification. they're saying they will tighten their belts fiscally but only others investing heavily in new technology. we need more clarity. will it be bifurcated productive forces only for chinese, only for ai or supply chains in china ? a lot of questions that need answering. tom: thank you indeed. i hope you take advantage of that gleaming swimming pool. stephen engle covering the forum in china.

on the earnings front the retail polls coming through at 7:00 a.m. and we will bring the dater to you live. to what extent are they able to navigate challenges of inflation and how much demand will be interesting. we will get spanish cpi, at 8:00 a.m.. expectation is year on year of 3.1, that comes out 8:00 a.m. to give us a flavor across the euro zone. 8:30 a.m. expectation is rates on hold at 4% but they could give an outline as to when the groundwork or when they will

cut. they're expected to hold rates at 4% and we will bring that live. get around of the stories in daybreak. subscribers can go to d.a. why bigo and one of the top stories is the japanese yen. that is the line for the boj and officials issued strong rhetoric around potential intervention given the weakening of the currency. down 1/10 of a percent, the rate differentials putting pressure on the currency versus the boj versus the fed, the gap remain significant. 151.68. japanese stocks of rally.

taking a look at the no fail mission to protect the red sea and why attacks continue and talking about the textile industry with the ceo of an h&m joint venture. this is bloomberg. ♪

♪ >> welcome back. lloyd austin told his his really counterpart civilian casualties in gaza are too high and eight is to level. they welcomed history fuels defense minister to the pentagon. after a resolution demanding

cease-fire and abstention from the u.s.. u.s. and allies have been trying to stop militias and talks sponsorships continue. let's bring in our middle east government team leader. why can't these rebels be stopped by the firepower of the u.s. and u.k.? >> good question. one reason is they are using limited power to stop these attacks and their using missiles and drones and ships in the red sea. they are striking territory often. every few days to hid military

targets, they are hitting drones, intercepting missiles. they don't want to get too deep or do anything that causes fatalities among civilian so there being quite constrained. one big problem is they had a large arsenal. and in november, there were being resupplied by iran and is difficult to stop that via ships. sometimes small ships, which amount the u.s. and the u.k. and others with no means to stop those by intercepting ships. extremely complicated. tom: paul wallace, thank you.

challenges of dealing with the threat around the red sea and why it is challenging. paul wallace with the consequences for global shipping. nigeria hikes interest rates for the second time, will it help the battered currency? the details next, this is bloomberg. ♪

♪ >> welcome back to bloomberg daybreak: europe, happy wednesday. chair of ancs said south africa's ruling party needs to consolidate support into a crucial election. in an excessive interview he spoke about a coalition

government. >> society is not ready for coalition. a coalition led for eight years. i don't have water. i blame the aid, but -- coalitions. tom: more from that in africa amplified. the buildup to south africa's elections. that is april 5 at 5:30. stay in the region, nigeria raise interest rates for the second time in their stepping up the inflation to sustain a re-cover in the currency with inflation at 13%.

get us up to speed on the decisions, what it means for the currency and why nigeria has acted again. >> monitoring global conditions, they think developed economies are likely to give monetary policies time so they will remain tight in 2024 before they begin declining. inflation is on the rise, up from 29.1%. same issues but the current seeing has had a tough time and they tried to introduce

stability. we are likely to see two tightening cycles and may in july. tom: more hiking cycles from the central bank. meanwhile we know it is a big election year. all central-bank and monetary policy decisions, what are you looking out for? >> we are looking to see what decision. the governor made it clear the policy will remain tight until inflation declines and that is when they will loosen. midpoint is 4.5% despite inflation declining in 2025 and six, governor maintains policies will remain the same.

tom: leading up to that decision from the central bank of course of south africa, thank you indeed. now to a story from the start of the week that has continued to evolve. cocoa bean futures hitting $10,000 per metric ton as the market deals with supply shortages and prices more than doubled rattled by poor crops in the world on course for a third supply deficit. h&m's plan to recycle polyester. the ceo of the joint venture discussing what they call recycling at hyper scale. will it move the needle? that is next, this is bloomberg. ♪

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♪

tom: good morning, this is bloomberg and i'm tom mackenzie in london. from cars to, the baltimore bridge collapse and the latest as authorities suspend search and rescue operations. the yen is at its lowest level since 1990, raising the prospect of intervention. japan's finance minister will take direct action. xi jinping meets with american business leaders in beijing as tensions rise between the world's largest economies. three state -- straight days of losses. s&p higher by 3/10 of a percent in u.s. stocks on track for five months of gains. fresh record yesterday, modest

losses. ftse futures flat. yen is the asset of the moment, looking at 151, softer by 1/10 of a percent. u.s. 10 year is at 422 67 billion dollars worth yesterday. currently the benchmark at 422, the pound softer and a move lower, inventories are building out. once look at the bridge that collapsed and the consequences of stretched supply chains. affecting coal to cars.

let's bring in the markets today at anchor. where do we stand in terms of search-and-rescue? >> search-and-rescue operations are recovery operations. six workers fell into the water and the coast guard is presuming them dead given the time spent in the water. no civilian casualties, traffic was stopped before the collision and 23 crew members are considered safe despite the fire . trade is a big piece of it and context is everything. this is the third busiest port

on the east coast. its biggest trade partners are germany, japan. a big exporter for coal and agriculture because this is the closest to midwestern states, so it is easy to see the port exploded in terms of revenue. all of that has been rerouted. tom: botching tension in terms of other reports. some trucks can pass through a tunnel but some cannot. another wrinkle in the u.s. supply chain. do we have any understanding of how quickly they can get this repaired? >> this is a weeks to months

long process. president biden is saying the federal government will fund this and president biden is going big on domestic spending. he has lobbied to union workers before. when they talk about reconstruction this is significant because the u.s. naval academy is close. the rerouting you're seeing is crucial because you're dealing with the panama canal but that can only go so far. tom: thank you indeed with the story for baltimore city. impact is significant for supply chains. thank you. let's get to the fashion space

and attempts to reduce carbon footprints. h&m reporting earnings, 7:00 a.m. u.k. time. they announced a joint venture to tackle carbon emitted by polyester. they plan to have 12 plants producing 3 million tons of circular polyester. i'm joined by the ces of cider. thank you for joining us. how significant is this venture for the carbon footprint? >> thank you for having me. we are a textile impact company and this is a massive scale.

what sets us apart is the massive scale based upon technology from north carolina and that sets us apart across all regions. textile waste is a circular business. tom: h&m is a backer. what is your expectation for recycle polyester? to what extent will he change the makeup of h&m? dennis: they were behind the deal and lacking a global partner at scale. there was a commitment to take a

pay agreement for the next seven years. tom: how easy is this to scale and can you move beyond polyester? dennis: we are a powerhouse. so we started polyester but you could add on different fibers along the way and it is easy to scale. we had a team working for quite some time. we move to a plant in north carolina and everything is 10k plants. north carolina is a blueprint planned. we develop processes and tools

and match that with immersion plants across the globe. tom: ok. you have a purchase agreement from h&m. $600 million, does it limit you in retail partners that you can align with? does it constrain your customer base? dennis: this is a clear commitment, and industry movement and they're happy they secured capacity. they are saying this will not be exclusive, it is open for collaboration. tom: so you can look to competitors for customers? dennis: yes. this is a great shift happening and we need to cooperate on the

back and front end, that is the way to do it. tom: would you say to skeptics who say recycling with microfibers and challenges, that's not the right way to approach this. that is a concern from some in academics who look at the climate crisis and challenges around microfibers. dennis: certainly, we are happy to engage in the debate. 60 million metric tons up to 90 million, it is growing and it is made from coconut oil. we are becoming a powerhouse. we need to stop the flow. tom: to those concerned about

greenwashing, when people suggest maybe this is greenwashing how do you take on the criticism? dennis: we've seen collections in the past showcasing new technology but the best way to respond is you are committed and it is not greenwashing, that is the response. tom: your plant is going to open this year, is that on track? dennis: that is correct. at the end of the year you will see it end to end. we were launched a few weeks back. we have been working 10 years on this mission. tom: dennis with the context,

ceo on the partnership with h&m and circular polyester and how that could change retail. inc. you. coming up the ceo of vtc group in his view on crypto in whether or not they are closer to approving etf's around crypto. this is bloomberg. ♪

♪ tom: welcome back. bitcoin breached the $70,000 level after a surge after etf outflows last week sense ftc approval. i'm joined by tim, a major

player in the crypto space. let's look to january 11, what has approval done to demand for the products? tim: widely anticipated, it took a long time to come to fruition. and lot of lobbying for asset managers. very exciting event, slightly hysterical event. the impact has been larger than the most optimistic forecasts. $11 billion inflows. we've seen that expressed in price action. tom: do you see money in etf's? tim: yes. european products have been

around longer, so i think there was repatriation to u.s. products but impact has been named legitimacy and of bitcoin. it is all very well promoting it but when larry fink puts blackrock behind it, this is a material change and impacts the attitude to bitcoin. tom: when it comes to building out a crypto sector is it playing catch-up? tim: euro has had crypto products for many years. the products are broad. a number of single asset crypto products. index products, a breadth of products available anywhere else

in the world. you cannot argue with the sheer size of debt -- and depth of u.s. markets. ripples are being felt and we expect others to accelerate plans otherwise moving slowly. tom: does the u.k. fall into that? exchange traded notes, do you see the right movement in allowing and regulating around this space in the u.k.? tim: london stock exchange has been waiting for a no action letter which came about a couple of weeks ago. what we're hearing now, as segment will be launched in early may, a really positive step for the u.k.. disappointment is preclusion of retail. it will be a market which is

part to rationalize given the ways consumers can access crypto already so it's difficult to see where liquidity will come from to be honest. i expect the market will stay focused in europe. tom: i'm getting the sense you do not think we are close to etf's getting approved. in the u.k. are we any closer? have you been speaking to regulators? tim: what are we talking about? in europe and etf is a usage fund and crypto is not eligible. the structure for crypto is not new, it was created 13 years ago when gold came to the european market so this concept of a bond

is widely accepted for bullion and products. crypto adopted that structure but you take gold out of the vault and the structure works. it's in a bold solution but these are funds. tom: regulators talked about crypto being used in financial crime, they talk about risks that retailers could be exposed to that is their reticence. ms. that starting to change and what are the risks of investors funneled toward less regulated exchanges? tim: that is the point.

in exchange traded product is the most highly regulated lowest risk access you can get so it seems all i to preclude that one channel and push investors to less regulated schemes with less oversight and security in a regulated market. tom: price is around 70,000 on bitcoin. 150 in the last 12 months. not as good as nvidia, but is the price looking frothy? tim: unprecedented. we never seen an all-time high ahead of a having event and the biggest estimation is demand shock and u.s. etf's. the etf story is just beginning. advisors have not even on boarded products.

the real story is yet to kick in. at 72, picking the price is tough and people should expect elevated volatility for some time. 30% retracement's have been a feature, so choosing entry is tough but looking at fundamental imbalance between supply and demand, i see that getting worse. not having a position is the bigger risk. tom: april is capping the number of bitcoins at 21 million and capping supply. tim: we expect the 20th of april, every amount of effort, they will get half the amount of bitcoin, so it is supply-side.

tom: thank you for walking us through implications of changes around crypto. ceo of vtc group. now to some other stories, apollo will buy $8 billion of financing from ubs and the sides agreed to a change in terms in the deal. there was an unsuccessful effort to win investor confidence before the rescue. the business known as spg is backed by mortgages, car loans and credit card debt. ub credit is in more favorable terms with a payment processor. this would strengthen an accord they reached in 2021 with sia, which was absorbed. plenty more coming up, stay with us. this is bloomberg. ♪

♪ >> i advise everyone to not see china as a threat. >> in the last number of years we have brought medicines to china. innovation is boomed and given many opportunities for us and companies to partner. >> we are i think coming out of a valley since the san francisco meeting between biden and xi. we have confirmed we are going to start talking, commercial,

cultural, military, very important. we have not seen those dialogues running, but i'm optimistic. tom: bloomberg best speaking to stephen engle in china on the economy, doing business. you would not notice but data has started to improve. industrial profits picking up in china, up 10% earlier this morning, building on the upside of profitability. base effects are flat when you cast your eyes back at euro year but it suggests there is stabilization for the economy. deflation remains a challenge but on some levels things are stabilizing.

they suggest more needs to be done. let's look at the coco price story, topping the price of copper for the first time in two decades. a little over 9000 and but it crossed through 10,000. an issue around the crops in africa and challenge with restrictions but the pushing of the prices in terms of performance and prices, beating nvidia over the last 12 months, something to bear in mind. markets today is next. plenty more, this is bloomberg. ♪

>> good morning from london. this is bloomberg markets today. with the cash trade less than an hour away. here is what you need to know.

if