kilometer in baltimore collapsed in a matter of seconds, but it's catastrophic confidences are set to strike out -- stretch out across the world for weeks. we explore how it is affecting supply chains and the shipping industry. i'm haslinda amin. the other top stories, victims to the lowest levels in about 34 years against the dollar, raising the risk of an intervention. u.s. stocks wiped out intraday gains, investors getting increasingly nervous among the rally that stopped for trillion dollars this year. meanwhile thailand's act market sees no revival insight as earnings slow, adding to the dim outlook. we speak exclusively to the founder and group ceo of one of thailand's largest companies on whether he sees sentiment

turning around. let's start with a look at how markets are shaping up. asia pretty lackluster after the s&p wiped out all gains in the final hours, tweaking portfolios after massive rally topping for trillion dollars. the pce report coming out on friday, the fed's preferred inflation gauge. the nikkei has had a stellar run, 20% up year to date, one of the best quarters ever. the yen getting smacked, lower since 1990 versus the u.s.. getting so close to 152 where we saw intervention at the very last. currently at 151.87, as we await earnings from icbc, boc and more. yuan traders pretty much confused as to what the pboc is doing with its fixes.

the owner of the ship that rammed into baltimore's key bridge could face hundreds of millions of dollars in damage claims but legal experts say invoking an obscure 19th-century law could reduce its liability. let's bring in bloomberg's bruce einhorn. very latest, what are we seeing? bruce: regarding the liability issue that you just raised, yes, there is the potential for hundreds of millions of dollars, but there's also the potential of the owner of the ship using this obscure law from the mid-19th century, which could really cap its liability in the tens of millions. this is a law that was used by the owner of the titanic after that ship went down to boost its liability. for now the focus is on the rescue efforts, there are six people missing and presumed dead. the question also then will

become just how to deal with the short-term chaos that will stem from the collapse of this bridge. there's going to be massive disruptions for traffic in the area, of course baltimore is part of the corridor between washington and boston so a lot of traffic goes back-and-forth there, all up and down the eastern seaboard. the port itself is the largest port for handling autos and light trucks in the united states, the second largest port for export of coal. so there's going to be a lot of diversion to other ports in the northeast, also to the west coast, as everybody tries to cope with what is likely to be weeks if not months of fallout from this. haslinda: and biden is bowing federal support, what do we know? bruce: this is going to be a

very expensive repair job. this is a bridge that was built in the 1970's. the price then was under $200 million. it is likely to cost several billion dollars to replace it. the president said that he will ask congress to pick up the tab. it is unclear just how quickly that would happen. things don't happen fast in the united states congress, so we will have to see, even if congress does agree to fund it, building a bridge is pretty complicated, so there will be a long time where there will be major disruptions. haslinda: bruce einhorn, we thank you so much for your insights. the bridge allows commercial ships to enter the port of baltimore. what are we looking at in terms of impact to supply chains, which by the way are already pretty fragile? >> that are, because of the

pandemic. they are just about recovering from them and then we also see how this port is the most important of the u.s. east coast, among the most important, as bruce just highlighted earlier, very important for coal exports as well. and that's just the port side of things. if you take a look at how many people the bridge actually varies every day, about 35,000. the trucking industry is already flagging some of the impact because of the damage to the infrastructure, we are hearing about how these disruptions could last as long as six weeks. let's take a closer look at just how important this port is. it is the largest in the u.s. when we look at cars as well as light trucks, it also handles a lot of coal and sugar, coffee, that all passes through the baltimore port. a lot of the coal that leaves the baltimore port actually heads to india, so we could see

that ramification closer to home here in the asia-pacific. earlier we heard from the head of global shipping for his views. take a listen. >> the port of baltimore last year sent around 35 million tons of exports, that's it biggest market that will be impacted. supply and -- supply chains are agile so they will be able to divert ships. in the medium-term there's an impact, but a slightly longer timeframe, basically they will be able to absorb the impact of what we are seeing right now in the port of baltimore. haslinda: you have to wonder, the outlook for coal prices, for shipping prices. avril: that something we will keep a close watch on, but so

far, what observers have been saying is that for global coal prices we might see a bit of limited impact, if anything we will see more of an impact for the asian market just because the coal that leaves the baltimore port is high in sulfur and that means they are not suited for the european markets. on top of that, the baltimore port also handles just about 2% of global salable call. let's also take a look at shipping rates, we saw a not so long ago how the suez, the panama canal disruptions really led to a spike in shipping rates. don't forget the red sea attacks. all of that will be digested and it also depends on how long this disruption lasts. haslinda: we will have to wait and see over the course of several weeks or perhaps even several months. let's discuss the impact of the baltimore bridge collapsed on

the shipping industry. joining us is a ship owner providing global transportation services. what are you gleaning from this? >> firstly, this was minimized by the ship actually sending out a made a signal. that helped shoreside authorities to actually take action and close down the bridge to traffic, so just a few people were on the bridge. that's the first issue that has come out of this. in terms of the impact, 25 million tons of coal are being exported from baltimore, now if that coal is not available for some time, this will have an impact on the coal supplies in australia and indonesia which

will then have to pick up the slack and send cargo to india. for the short-term, it will have a negative impact on the market for the time being because the coal will be shipped from indonesia which is a shorter distance and shipping it from baltimore. so that's the impact from the stoppage of this port from exporting. haslinda: we see ships collide often and now we see accidents often enough, is it different this time around? what might be some of the causes for the incident this time? >> it will be beyond speculation to comment on this, but the possible causes, at least from what we've seen so far on the venues that are available is that there was some sort of

power blackout on the ship, and there was a plume of smoke that came out of the final just three minutes before the collision with the bridge. the ship was proceeding on a perfectly good course suddenly veered to the right and hit the bridge. so it seems that the last 10 or 15 minutes of its journey before colliding with the bridge, something went wrong on the ship. nobody really knows, the port authorities are on their way to help the baltimore authorities to figure out what went wrong and to make sure that such an accident never takes place again. that report will take some time to come out, but until then it will be speculation, maybe the fuel was contaminated, that is one possibility. a second possibility is that one of the engines, auxiliary engines that powered the ship

broke down. that is the second possibility. of course human error, most accidents take place because of human error. with two pilots aboard and the bridge watch from the ship side, i doubt there has been human error on this one. haslinda: might we see widespread rerouting of ships, and what might be the impact on global trade? >> global trade, how it impacts -- there will be an impact. like last year, global trade grew by 4.83%, and right now, baltimore has exported 0.8% of all trade. so you can see that will have some impact, it's going to have

a 3.2% impact if it stays shut for one year. at the same time, if it stays shut for one year, all the other ports on the east coast which are capable of shipping out coal , that will limit the impact of being shut down in baltimore. i think we are already starting to reroute ships into different ports on the east coast and in fact new york is saying they will welcome the container ships that are coming in and they will make sure they are in dialogue with baltimore to understand a best to service the american customers i getting their car goes off the ship as quickly as possible. haslinda: of course this accident happening against a backdrop of rising geopolitical tensions and risks including in the red sea. how are you assessing in terms of perhaps additional costs for companies for shippers? >> i think the cost will not be

that significant because if the ships are rerouted to other east coast ports, there will be some sort of marginal increase in costs, but more than that i think maybe the congestion created at these ports which are already handling their own cargoes and to suddenly be confronted with more cargo coming from the port because baltimore is shut. that will create some sort of congestion and will retain ships for longer during these turners -- these journeys. it will shrink available supply of ships. haslinda: thank you so much for joining us today with your assessment of what is happening in baltimore. breaking news, japan reacting to the weakness in the currency,

inching ever closer to 152, with suzuki saying japan will not rule out any options to support the currency. it will take bold action against excessive fx moves and that in reaction to where we are in terms of the currency, the japanese yen trading 151 .70 seven, ever close to the 152 level which we saw intervention the very last time. suzuki watching the market with a high sense of urgency. japan saying it will take bold action and efforts of necessary. the again pairing is lost against the dollar after comments from suzuki. still to come, more analysis on the baltimore bridge collapsed. we will discuss the impending legal battle over who ins up paying for the damage, later this hour. plus our exclusive interview with the ceo of thailand second largest chemical maker. their outlook on the global

industry come just ahead. keep it here with us. this is bloomberg. ♪ chances of a plane crash -- 1 in 11 million. you're not gonna finish those salted nuts, right? never waking up from anesthesia -- 1 in 185,000. validate your parking or just see how it goes? what? why stress about the unlikely? does a killer clown worry about being struck by lightning -while winning the lottery? -sure don't. but your odds of falling victim to online crime are 1 in 4. you need aura. you, your family, all protected from scary online stuff. [ laughs ] protect everything your family does online with aura.

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my sister's told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial. haslinda: welcome back, we are keeping an eye on the yen, paring losses after japan says it will take old action on the currency if needed. it will not rule out any options and that it will certainly take all actions if needed. it is watching the market with a high sense of urgency. earlier the yen inching ever closer to that 152 level where we saw intervention before. let's bring in large fitzsimmons, -- laura fitzsimmons, your thoughts on that warning from suzuki saying

it will take bold action if needed. laura: definitely the development continues. we had seen a step up in the job bonding over the last few sessions but it does seem now that we would be approaching level four, where we have seen intervention occur in the past. yesterday we were still at level three, but as we get more heightened in terms of the tone, we could inspect that it any moment. haslinda: will it be closer to 152 are 155, some say? on expectations of fed will move, and japan just needs to wait out on the fed? laura: we've been talking around what sort of levels make sense, clearly it has been a good strategy over the last few months when needed. as we approach the holiday weekend in certain parts of the world, and the fact that we have some key u.s. data coming out

when the markets will be close, there is definitely a heightened concern around the kind of volatile move that you could get around intervention. for that reason i think traders will be scaling their offers a little higher than would be expected, just in case perhaps they allow it to extend a bit further than expected. no one wants to be caught too early. haslinda: suzuki says japan will not rule out any options. what options are there? laura: i think we've learned from the past that there aren't that many options left. this has clearly been one that has been deployed before. don't think the market is expecting anything new in terms of a mechanism here. what we've seen in the past will be exercised again, but certainly coming off the back of the first rate hike in any years, is not a position the

finance ministry one to be in. haslinda: a lot of traders are wondering what is the tolerance level for yuan weakness. how are you reading where the yuan goes from here, especially in terms of fixing on friday. laura: we do believe overall that using yuan weakness is not the way to work out of inflation. at this stage the market clearly was surprised a lot on friday and there were certainly discussion to start the week, but we are expecting somewhat more stable fixings, closer to where expectations should be. haslinda: how much weakness do you think the pboc is willing to tolerate? laura: i think this juncture we can allow a bit more, but certainly we don't expect anything too meaningful from here. traders are looking toward levels of 725 or 730, but beyond that, i'm not sure were seeing much positioning apart from what you might see in options space.

certainly in of cash positioning, the expectations are more for around these levels in the short-term. haslinda: speaking of tolerance, is there a sense that the fed is willing to tolerate 3% inflation? what are you looking at? laura: what we saw it last week from chairman powell was clearly more tolerance than was expected by the market. in terms of that press conference, the dovishness, looking at the january and february cpi prints, i would say there was more patients in letting the disinflation story play out. certainly it seems at this stage he is not backtracking and things are on track largely. for that reason, i think for the fed at this stage, unless we see some meaningful upside surprises, we still think the first rate cut will come in june and we are expecting three to come this year. that house would probably air on more cuts than that rather than

less. i think the market will be facing the other way. a lot of people were burned to start the year in terms of dovish rate cut from the fed. the market is also nervous that even june could be in doubt, obviously get the strong prints, but that's not within our expectation at the moment. we do remain fixated on june and the market has been impressed by the fed's tolerance of far. haslinda: so how are you position, laura? laura: one of the tradespeople like, the bond curve in the u.s., these trades people have been running for quite some time. you might've thought there would be more vindication last week after chairman powell's press conference in terms of that tolerance, but with that longer run. rising slightly, it was within expectations. clearly it is a set up that makes sense in terms of rate

cuts coming sooner than the inflation numbers are allowing. certainly the risk in the longer run, the market could be allowed to run a little more hot and obviously we would be upgrading growth and inflation forecasts. the one thing we worry about is the fact that these trades that people had on for some time, we haven't seen a lot of new money put toward that trade in the last week, quits -- which suggests that conviction is lower than you might've expected after that press conference. we think the positions do make sense over the longer run, but here and now, the market is a little bit unsure. what we've seen in terms of data misses, i think the market gets very concerned and we can have some outsize moves. conviction levels are rather low and i think if anyone wants to run duration of these levels, they are little more cautious. haslinda: laura, thank you so

much for that. plenty bar head. keep it here with us. this is bloomberg. ♪ but starting it eight months pregnant... that's a different story. i couldn't slow down. we were starting a business from the ground up. people were showing up left and right. and so did our business needs the chase ink card made it easy. when you go for something big like this, your kids see that. and they believe they can do the same. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card. make more of what's yours.

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haslinda: china's big banks are set to report earnings today. we will be watching for results from icbc in the coming hours and a look at the other lenders posting results. in terms of china bank plays, how they are doing today. this is a day when there is a lot of motion but bank of china currently unchanged. those chinese banks do to report later today. we are also keeping an eye on china property plays.

ollie property services jumping more than 10.5%. rising from the 2023 profit jump. also keeping an eye on green town services, advancing after its 2023 profit increase as well. in terms of earnings to come, keeping watch on uid and others. those stocks in negative territory. gbs slumping almost 26% right now. plenty more ahead. keep it here with us. this is bloomberg. ♪

investors are not liking the sound of this. that was a dispatcher as investors are trying to come to terms. the most recent this is a company that has really seen intense competition which has also 300 plus hong kong dollar's.

take a look. the idea was to split the company to six divisions. now, what we seen from the cloud unit is its tumbling down. >> let's give it to thailand. the second worst-performing currency in asia. data said it is a two-year low along with slowing economic growth means thailand is

becoming the least attractive market in southeast asia. market value among the world. >> thank you for having me. the last four years we have seen big swings in earnings.

>> it's been a challenging year. quotes it's getting better. margins are low. over the next couple of years that he gets consumed in the marketplace. it will take a couple of years what do you mean by that? climate talks have been a big factor.

decarbonization is moving into more sustainable materials. those are things. in the west there is a big distortion where europe is. especially in the defining market. >> how are you navigating the changes? >> interest rates are low i think interest rates are high.

china playing out self-reliance card so, between the two investment opportunities which will continue to be a growth company. in order to help cash flow we must margins are making sure we are tightening the bells.

a couple of things that are announced over the next three years. >> with the growth entail m&a? are you planning any? >> it's going to be a combination. i am going to keep that below three times. for that to happen i need to rely on free cash flow. get the leverage down and then going forward, use the cash flow.

how about what you see in the petrochemical sector? don't see as many, when i see opportunities, there are a lot of partnerships going on. some markets are not as robust as they used to be to combine businesses and grow the businesses. it's all about creating shareholder value and customer value. we need to have a competitive asset. it is a concern and we are fixing things in europe.

>> what exactly is the thinking behind that? one of the businesses that business is where we see if they do float in the u.s., they get the capital for their growth. it continues to be that business the core business. that's the reason why it could happen most likely in the u.s. or in europe.

quotes could be where we are already present it did not suffer any consequences of the last two years. i see value in the business. a bill would allow same-sex marriage on the corporate level from your company level, how are you looking at that?

our sentiments are that we encourage diversity. the policies are set with 16 nationalities in the company, i think we are open to that and we encourage it as well. quotes as we mentioned the bill seeks to legalize same-sex partners, allowances and child adoption among others. it would make thailand the first country in southeast asia to establish marriage rights for gay and lesbian couples. the impending legal battle about

who ends up paying. keep it with us. this is bloomberg.

>> welcome back. futures are pointing towards a higher open. asia is marginally higher by 2/10 of 1%. futures are currently flat. back to the collapse of a bridge with legal implications. let's discuss this. good to have you with us. first off, your take on the legal fallout that is likely to happen here? >> we are seeing from the videos

, engine failure so it's not straightforward. so if you look at possible parties to look at the master. there was also a pilot. the vessel engine condition or if there was a defect. these are generally some parties

that are considering positions of the moment. >> people point to the titanic law that limits liability. how are you looking at this? should be directed to me in singapore and i would like singapore to up by that. there will be a fight depending on where you stand.

there is different liability. even though they are lower for the circumstances. bloomberg.com these are the early days. what kind of lawsuit might ensue from here? people may soup for emotional distress. personal injuries. >> to start with, the owners of the bridge will say they lost

the bridge. people were using the bridge who made suffer the losses i understand some lives were lost. they will be making some claims next to because the bridge stopped traffic. ships are stuck. they are stuck. i cannot go into the terminals. these are some of the parties for suffering losses and who are looking at making claims. there are also cargo owners.

looking at potential losses as well. we know that 90% of cargo is insured. so then we will see him if they recover now. >> to be sure that ships collide often enough, is this any

different from what you have seen before? >> he is different because it happened in a narrow channel so some good asked why they were not additional precautions taken. why? some places will be asked. what other steps could have been taken? in hindsight, everyone is clever to avoid an incident like this, it is probably foreseeable in a busy channel. >> thank you so much.

let's do a check on markets. taking a look at where the benchmarks are, pretty much in line with the rest of the benchmarks in india. pretty flat right now. plenty more ahead. here with us. this is bloomberg. ♪♪ hello, mia. are you ready to meet your demise? man, we really need to upgrade your trash talk. ♪♪ nice shot... shot... taker. who programmed you?! i'll see you tomorrow. the future isn't scary, not investing in it is.

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>> ceo about for zeneca says the pharmaceutical giant will support china's biotech industry even after the u.s. is pushing for the decoupling of global supply chains. they see immigration growing in china. >> in last number of years we have brought medicine to china but innovation has boomed in china then has given many opportunities for us and also other companies.

we are really focused on making sure we bring new medicines. >> how fundamental has china become? flex it's not yet tremendously but it's becoming rapidly important. the u.s. will continue to dominate but in the world, the second-biggest provider will be china especially with new technologies. in the old days, we are bringing molecules. in the last few years a large number of new technologies have emerged. >> what is going to be the

biggest ramification? this legislation would ban chinese pharmaceuticals if they are deemed concern. does this benefit you or is this bad because at the end of the day would limit access for patients who need drugs? >> it's important to facilitate cooperation and sharing of data and new inventions, so i don't think because we are sourcing those products.

so those will be thousand mean it is sourced from china. >> that is an important. we have large supply chains so we can actually supply the united states and europe and that is what we do. we're building our presence in china. i think the fact that the product is invented here means it will be manufactured out of china. >> we are on currency watch.

let's take a look at the yen. japan sows they are willing to take bold action. it's lowest since 1990 getting ever so close. we are keeping watch on other currencies. the bloomberg asia dollar index. daybreak middle east and africa is next. this is bloomberg. ♪

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