♪\ shery: you're watching

daybreak asia coming to you live from new york, sydney and hong kong. >> were counting down to asia's major market opens. the top stories, jamie dimon says banking turmoil is nearing its end. after the lender's purchase of first republic bank. the aussie dollar holding. of a pause as inflation cools. plus we speak to the ceo of a japanese drugmaker about their 5.9 billion dollar deal for the eyedrop maker. we are just getting some more inflation numbers when it comes to south korea. haidi: cpi is coming through, rising year on year. that is a little bit sort of

more or less when it comes to the consumer number on par with expectations. that core reading rising 4.6% year on year in consumer prices on a month by month basis are meeting expectations. when it comes to broader inflation, there's more to the outlook in south korea than price pressures. there's unemployment levels and weakening headwinds that we are seeing when it comes to external demand. weakness in demand has been hitting south korea. that is played through when it comes to china numbers as well. we are beginning to see the signs of stabilization when it comes to economic indicators for the economy. annabelle: that's right and we also have the open in the next hour for japan and korea and australia. so far this set up is looking to the downside. sherry will go through the numbers in just a moment but in

asia we have key economic events. we have pmi readings, a lot of those for southeast asia and north asia. rba is in focus, given we have policymakers making the decision later on tuesday. if you change over now the vast majority of economists are expecting the rba to extend their pause for a second straight month, holding the key rate at 3.6%. there are arguments saying that they should continue hiking at this expectation that rates will stand hold for some time. markets could be mispriced and one of the factors that some are looking at is what we are seeing in terms of rent rid of those have been soaring and a lot of discussion about rental prices in australia and local media. the most since 2010 as you see headline inflation, the line in blue starting to drop. that tells us perhaps that there could be and inflationary backdrop and that was picked up in the april meeting minutes. that could be a factor to

continue rising prices. certainly something to be watching. cba among those saying it is a close call for what phil lowe and his colleagues are going to be doing. shery: in the u.s. we are watching wall street gearing up for the fed's tent consecutive rate hike since march of last year. futures are under pressure and we had data showing u.s. factory activity contracted for six consecutive months but the gauge in the manufacturing sector climbed so the selloff was across the curve. yields are higher by 13 basis points and on top of that, we had corporate bond offerings. we had the u.s. treasury wrapping up estimates and on top of that, stabilization in sentiment, given jp morgan's decision to acquire first republic bank and weighing on fixed income. look at j.p. morgan, greening --

gaining ground for a third consecutive session but first republic was the second-biggest in u.s. history. let's get more on this deal with bloomberg intelligence senior analyst holman chan. j.p. morgan, already massive, becoming bigger, what does this mean for the concentration of banking in the u.s.? >> it was surprising that the regulators allowed jp morgan to participate in the auction. we were under the assumption like many that any acquisition of first republics assets would be by a regional bank like citizens or pnc. but really what was happening here, the fdic mandate is to limit the potential losses to the deposit insurance. and by selling the entirety of

the assets, the loans and securities to jp morgan, it limited the potential loss. >> how much of a boost does jp morgan get in terms of seeing ratings upgrades on the news of the deal? >> they've mentioned that jp morgan should book $2.6 billion immediate gain, which would be tangible value. then the earnings on a yearly basis, $500 billion. a lucrative deal that is beneficial to the bank. that might seem conservative as analysts were pushing back. that could be higher later on when the deal -- what is

integrated into the jp morgan systems and balance sheet. haidi: do you share jamie dimon's optimism that the worst of the turmoil is over? what are you watching out for now? >> it is about deposits. if you look back at first quarter earnings, there was some stability and resilience. on average, the deposit decline on a quarter over quarter basis for regional banks, the ones i cover was two to 3%. so the spike affect that you saw , a 40% drop at first republic, they were the outlier. and the other regional banks that had been in the spotlight like western alliance, they offered credible plans in terms of improving their capital ratios, selling assets, seeing

deposits come back. raising the deposit insurance across the base. so these banks do seem to be able to withstand market pressures unlike what happened. haidi: hermann chan, bloomberg intelligence senior analyst. joining us hours after jp morgan agreed to buy first republics. the conference was getting underway in california and we spoke with vince who told us it's in everyone's best interest that there be a safe and sound banking sector. >> we stepped back and look at what has happened over the course of the last months. a lot of focus on a small number of banks. struggles from asset liability management. we have seen a resolution of this chapter. i think that is great. first republic, signature bank becomes that small footnote in

history. not systemic, no contagion. but there is concern about how this has affected lending standards, the appetite to lend and business activity overall for banks that are now looking at regulators and the potential that there could be i guess more of an umbrella when it comes to the regulatory environment. >> it is in all of our interests to have a safe and sound, trustworthy reliable banking sector. that is important and it powers u.s. growth and gdp at the end of the day. it is to no one's benefit to have an unsafe sector and one of the things we've seen over the past 15 years of the global financial crisis is liquidity and capital in the banking system, safer banks, particularly the largest ones in the united states. that really allows us to be able to help clients whatever comes in the economic environment.

so that stability is something that is to all of our benefits. >> is a liquidity that? is there a willingness to move the money around? >> there is a high velocity of money. we have a report that leverages the breadth of data assets and touch points in the financial system. and we absolutely see people moving money around. that is why for us having that ecosystem where a client might want to make a deposit or put it in a money market fund or are dreyfuss market fund, maybe repo with the fed, maybe with somebody else. it does not matter. we touch at that in each point of the transaction and help them where they may go and that is our focus. helping clients navigate because the world is a complex place. shery: ceo robin vince speaking with romaine bostick. >> a faster than expected

deceleration of inflation is expected to allow the bank of australia to pause its rate cycle for the second month. global economics and policy editor kathleen hays here with the latest. how does the inflationary picture looking australia? kathleen: faster than expected, far away from the target but phil lowe paused last month that he's expected deposit again, keep the rate at 3.6% and you can see how so far. cpi well below the peak headline. deutsche bank switched from a hold for another hike after they saw this inflation report. bank of america saying it's a high bar when many more rate hikes. looks like what phil lowe is signaling is he is ready to trade a faster return back down

to the inflation target to ensure a soft landing and hold onto that three and a half percent unemployment rate, the jobs growth. that is where his focus is right now. and i think that it is interesting that the barbie index has fallen, mainly because the prices of see, work and wine have come down. food prices have been a big source driving inflation higher in australia. i think it is important to a lot of people, that index. but overall to look at the important part, phil lowe is in a position where he has got support for seeing what happens, riding the wave. and seeing what they need to do. for now, sit tight, keep your fingers crossed and no hype today is the forecast. haidi: i love the barbie index, one of my favorite gauges that we track. another key gauge is u.s. manufacturing.

showing us wheat production, a jump in prices, how does that feed through to messaging for the fed? kathleen: that's not the kind of messaging the fed would like to see after the latest inflation data looked not as reassuring as they would like to have seen. is the purchasing managers index that has been around since world war ii. this index holds a lot of weight. it has been contracting and in this latest month you can see at 47 it is above the previous rating but below 50. it's the sixth contraction in a row but prices have been jumping up to over 50 from just below 50, and that suggest that maybe things are not completely cooling-off in the manufacturing. this is the prices paid index, not a consumer pricing index or producer price index. it is a sign that inflation pressures are there and if the fed had to put that on either side of the ledger, it would be on the side of maybe we have to do one more hike, that is what

people are expecting. one more hike and then with all the banking concerns, what it will do to lending over the next several months that the fed will signal a pod with -- pause. but definitely a mixed bag in the wrong direction when it comes to the prices paid index. haidi: global economics and policy editor kathleen hays. let's get you to vonnie quinn with the first word headlines. >> president biden has called top congressional leaders, inviting them to a may 9 meeting to discuss the debt limit standoff. the invitation comes hours after treasury secretary janet yellen warned that the y as june. since hitting the limit of 31.4 trillion in january, the treasury has been using accounting maneuvers to stave off a possible default. sources say the white house is considering promoting fed governor philip jefferson to vice chair. in addition to naming a candidate to an open board slot in a shift from prior plans.

the move is under consideration after pressure from senator robert who is calling for someone to be appointed to the fed. imf chief christian says there thinking about debt reconstruction after getting burned. they've joined western lenders from the periscope in recognizing need to create a better mechanism. more than half of low income nations are near debt destress. >> we fortunately are seeing a shift in this thinking. why? for a very simple reason that i'm sure many of you would understand, they are now being burned. nothing makes you more eager to understand debt restructuring then when a country says sorry, i cannot pay you back. >> global news, 24 hours a day. on air and on bloomberg quicktake, powered by more than

2700 journalists and analysts in over 120 countries. on vonnie quinn and this is bloomberg. shery: still ahead, citigroup ceo tells us why she sees bright spots in japan and india. here more from the conference later this hour. plus our exclusive interview with pharma ceo and their deal to buy a drugmaker. i'll keep --naoki joins us live in a few minutes. this is bloomberg. ♪

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>> we are anticipating a recession at the back end of the year. with the amount of pent-up demand, the strength of the corporate's and the consumer, it amplifies -- the usual amplifiers of contraction are not in place. and we will see the u.s. economy at whatever a recession could be quickly. shery: jane fraser recession expectations. our next guest says if a slowdown happened in the u.s., the consumer is well-placed. joining us is ceo and cio of defiance etf. rate to have you with us. we are seeing consumers in the u.s. with higher prices. how much longer can they keep spending?

>> great to be here. consumer spending has been softening but not a lot. so the other factor is that wages have continued to rise in job numbers continue to be strong. in terms of a recession, we are seeing a softness. pmi, those indicators are coming down. consumer spending is softening. i would not say it is a hard landing recession type of territory. we will experience a slow down we are seeing that in the last 14 months or so. i do not expect a hard landing with a lot of fundamental factors in place of too many people have jobs, too many people have high levels of savings. wages are increasing in demand continues to grow in a lot of industries. shery: after the banking crisis some say that the crisis is over

but could we expect credit conditions to worsen? and not bode well for the broader economy? >> that's a great point and how this shakes out is unclear. on the surface it sounds great. jp morgan to the rescue. there is no systematic issue. it feels like a blip in the radar. the market did not seem to react badly. however once the starts to happen and you see different changes happening, for example a lot of banks that are ok or are not being looked at in terms of the things that could potentially go under or lose business, they are losing deposits to bigger banks because they think the average investor feels safer having stalwarts behind their money. so if you then lose regional banks and their capacity to lend to small businesses, that's a major part of our economy and

gdp. that does soften our economy in the long run and create different types of issues within the regional banking sector. haidi: what other themes are you optimistic about? you're looking at some of the things that we've already seen register impressive -- impressive gains, like ain big tech. >> i am, in even though they had a good run, what i like to say to remind tech critics is they have been in a recession through most of 2022 and now the names are coming out and they've left the market. why they have strong balance sheets, they have been able to grow, they've been able to cut costs and improve but they're halfway to where they were at their 52 week highs. they still have a ways to go, so enter ai, quantum computing,

machine learning. the big tech names, i'll even throw some conductors in there. apple, amazon, you name it, they will change the way our economy operates. they will change the way companies function and improve efficiency as they further develop different types of artificial intelligence technologies. i like these names. i think that while their valuations have gotten higher, they are not high enough for where they're going to go in five years. haidi: when you take a look at the stumble that we have seen in the emerging markets, a large part of that is the uncertainty as to where the next part of chinese recovery goes. are you looking for exposure when it comes to the china growth story? >> yes i am. i think that the chinese economy ebbs and flows but we have to keep in mind this is the second

largest economy in the world. the whole reopening has only just really started to scratch the surface so i think you will see a pickup in global travel. you will see retail spending showing up in luxury brands. overall you're going to start seeing consumer spending and you're going to see accommodative financial backbone in the government as well. it's a matter of time and i remain invested in the market. some chinese tech stocks like alibaba, tencent, jd, i think that there is another growth story there that is relative or related to ai, machine learning in quantum computing like we have in the u.s.. shery: ceo and cio of defiance etf's, good to catch up with you. you can get around up of the stories you need to get your day going in today's edition of daybreak. terminal subscribers go to dayb . available on mobile and on the bloomberg cap.

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♪ haidi: the quick check of the business flash headlines. tbs third quarter profit topped estimates. income increased to one point $9 billion. they join other lenders like citigroup with an income boost from higher interest rates. morgan stanley is preparing job cuts amid the slump in dealmaking. sources tell bloomberg the company plans to eliminate 3000 jobs by the end of the quarter. that amounts to roughly 5% of staff.

its trading group will bear the brunt of the layoffs. it marks the second round of job cuts. still ahead, are exclusive of a ceo when it comes to buying vision specialist. the inside track on that deal is next. this is bloomberg. ♪

annabelle: this is daybreak asia. a check on markets 30 minutes out from the opens in japan, korea and australia. so far we are looking for a mixed open. a lot of markets are coming back online following a public holiday on monday or tuesday rather. the watching bond yields in the front end of the curve in particular, given the moves in treasuries, a few different reasons being cited, one is heavy corporate issuance. seeing yields rising. in terms of what else we are watching, a lot of that coming down to what we can expect out of china. we see futures pointing to a weaker start. if you change over now, what is driving that is expectations or the reaction to will be get from the labor day holiday figures. you can see it sales growth across the board. really the first chance that a lot of people in china are

having to take trips and travel for the first time since the pandemic. really strong numbers, but the debate amongst investors is whether these gains can be sustained. wage growth is weak in the country and unemployment is hovering at record highs for use. that is the state of play question ahead of the open in china. haidi: let's get you to vonnie quinn to catch you up on the first word headlines. >> the u.s. treasury is boosting its borrowing estimate for the current quarter to 726 billion dollars, an increase from the 270 $8 billion penciled in at the start of the year. the figure assumes congress will raise or expand the debt limit and it affects the treasuries expectation of lower revenues and higher spending. bank of japan has indicated it is growing confidence for this fiscal year. they say in their economics

report that the result of wage talks suggest sizable gains, not only among large businesses but also smaller companies. the shift will fuel speculation over policy adjustments. lawyers for a tesla critics say elon musk has agreed to pay $10,000 to settle a lawsuit. they called out tesla's rocky production of its sudan in 2018. -- it's sedan in 2018. the lawyers say the settlement achieves the goal of clearing his name. president biden says any attack on the philippines would trigger american defense commitments spelled out in a decades old treaty. it reaffirmed ties following a meeting with philippines president. marcos trip to the u.s. comes amid strained relations with china over disputed parts of the south china sea. global news, 24 hours a day. on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg.

shery: we head to the conference where ceo is speaking right now. >> throughout the 90's and i am a child of the 90's as well. 90's china. >> your adolescence. >> exactly, my formative years. there were two things that i remember my father really brought back from hong kong. one was just amazing ramen, instant noodles. as always, i look forward to the instant noodles he brought back from hong kong. and the other was the stock market. in fact, every winter i had an opportunity to visit him and stay with them during winter break in hong kong. i was fascinated by all of the numbers and charts and graphs on the tv screen all the time. but also by how fundamental the

financial market was and still is. not just to economic life, but to every day life. >> what was your father in? >> he was a state representative for a large state owned enterprise in hong kong. they owned courts and car dealerships. that was inescapable. when you are in hong kong, that is what you see all the time. and that was in contrast with the steel being developed in the chinese financial market in the 90's. that was a huge part of what got me into finance and not surprisingly, that got me to apply analytical skills and my interest in data engineering toward solving the market, even before i knew what that meant. >> you're thinking about solving market problems at what age?

>> yeah, when i was 10, 11, 12 something like that. i went to school relatively early. i went to college when i was 14 years old. so i guess to get the timeline straight that was important. >> most people who go to college at the age of 14, how should i put it? let's just say they are usually pretty intelligent, above average at the very least. at what point to they put you on an accelerated path? >> mass is one of those things where you're either good at it or you're not. so i knew that i wanted to pursue mathematics because i'm

fascinated by the subject, i have an affinity to numbers and data. so i studied applied mathematics in college. this was in peking university in beijing. and then after that i came to united states for my phd in statistics. machine learning and data size. at uc berkeley. right after that i started working. so other than the few part-time jobs i have had i've only worked at one place. drawing the said dell right after grad school and i was at the firm for 17 years. never knowing what a different corporate culture would be like. >> 10 was trading out of his dorm room. did you have a similar story where you are finding ways to as

it were be done market while doing your phd? >> no. he was way ahead of me on that. my best trade was to buy 100 shares of apple stock with money from my internship. >> securities ceo peng zhao. if you want to hear more, live go is your function. too big deals news this week, japanese drugmaker has agreed to acquire u.s. treatments for age-related alignments. the acquisition gives them access. it seeks to reduce dependence on a product such as prostate cancer drugs. joining us is the president and ceo of pharma. thank you for your time and

congratulations. it comes at a significant premium. why does this deal makes sense? >> thank you for asking. we have two strategic purposes for this transaction. number one is to acquire acp which a direct buyer is developing for geographic atrophy related to macular regeneration. -- degeneration. so it is under review by the u.s. fda and anticipated to receive the approval august of this year. this product if approved is going to be an additional pillar for us to achieve the goals that we set in our strategic plan for 2021 and probably adding a revenue gross for the sustainable growth after the

expiry of the drugs. and secondly, our team has built an excellent capabilities in the area, r&d, research and development. they are building a commercial chain in the u.s. and as well as the network with academia, leaders and patient advocacy groups. we actually have gene therapy and the capabilities will accelerate our programs. shery: when it comes to fda approval, how confident are you that this will happen by august? how competitive are you expecting the drug to be in the market? >> yes. of course, it is early to say whether or not the u.s. will approve the drug, but we have

reasonable confidence that they will come back to us with the august 19 date. it is going to be the second drug in that geographic atrophy secondary to amd. haidi: how much will this make up for the decline in sales you are expecting to see. >> we foresee potential for acp. we have in our internal portfolio, this is going to be the additional pillar for sustainable growth after that loss of exclusivity. haidi: do you see this as a safer level in terms of progress being made on the asset so far, in terms of avoiding some of the

impairment costs and obligations that we've seen with previous m&a? >> you know, it is the nature of our business that we have to acquire external assets very aggressively and sometimes the pharmaceutical development is very high risk business. so when we acquire the asset and faced the failure, we have to write off the intangible asset. and it is, you know, it is something that we cannot avoid as far as we are relying on the innovation that is coming from external and a combination with internal capabilities. haidi: a lot of the focus in r&d, manufacturing and expanding market share has been global. is there a particular market or segment that will be a key priority going forward? >> yes, from a geography

standpoint, more than 80% of revenue comes from outside japan, so we have become truly global. 40% comes from the united states. it is important that we address the u.s. marketplace. from the therapeutic area standpoint, we are taking a focused area approach which we start from by combining modality and we have five of those primary focuses. one of them includes immuno oncology. shery: now you have seen a mixed record when it comes to m&a's. when it comes to growth, will it be organic or are you expecting to have more deals? >> it is dependent on how the internal pipeline goes, but we

are always open to acquiring attractive assets from outside. so we cannot say whether we are doing m&a next year or 10 years on. it is dependent on how our pipeline as well as the external landscape goes. haidi: naoki, great to have you with us. president and ceo at astellas. australia is encouraging the use of ev's. we get analysis on the plan, whether it is too little, too late. this is bloomberg. ♪ what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets

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haidi: australia recently unveiled its electric vehicle strategy, aimed at increasing the uptick of ev's across the nation. bloomberg data will show that ev's represented 3.6% of australian passenger vehicle sales in 2022. with us is the head of australian researchers joins us in sydney. what is the root cause of australia to have this lag in the uptake? you see so much more of a preference for gas guzzling cars in this nation. >> good morning, always a

pleasure to be here with you. you are absolutely right, australia is a laggard when it comes to the uptake of electric vehicles. to give you a context for the lectric vehicles represented 16% of passenger vehicles around the world last year. in markets like europe and china, they represented more than one in four car sales. now the reason that australia is lagging behind is multifaceted but ultimately in primarily, it's a question and issue of policy and a lack of it. in particular australia right now lacks any form of fuel efficiency standards or any policy that would control the carbon intensity of cars sold into the country. and while globally the supply of electric vehicles is limited, automotive manufacturers are prioritizing other markets where

these types of policies exist. and they are not prioritizing the australian market. as a consequence, australian demand for electric vehicles will grossly outrace supply in australia is likely to lag. shery: does the national strategy include those policies that are needed? leonard: the recently released national electric vehicle strategy for australia was a bit of a nothing burger. it was a plan to have a plan. while it had pillars supporting the uptake of electric vehicles over time, the fuel efficiency standard component was incredibly light on details. government has entered consultation on fuel efficiency standards but it has stated that it intends to release it later on this year. this is the component of the policy to watch. to understand the uptake of electric vehicles up in the years ahead.

the stringency and efficiency standard, as well as penalties in place for noncompliance on the part of automakers will dictate what the uptake of ev's will look like in this decade and beyond. haidi: australia set broad targets by 2030. several states are targeting one hundred percent sales by 2035. i suppose my question is that are late than never or too little too late? leonard: it is a bit of both, depending on how you look at it. right now the transport sector is the second largest source of carbon omissions across estrella. the electricity sector being number one. because australia has left driving electrical so late into the games and carbon intensive gasoline cars can remain on the roads for 10, 15 or even more years, electric vehicle uptake later on this decade is unlikely

to have a significant impact in assisting australia to reach its emissions reductions targets by the year 2030. as you highlighted, it's not the only tiger that exists across the country. the federal government has stated it would like to see electric vehicles representing about 89% of all passenger vehicle sales by the year 2030. several states have set more ambitious targets, targeting 100% by the year 2035. but of course these targets are quite ambitious compared to where the country is right now. there is a lot to do and really not much time. but to get there, it draws into the question, other supportive policies for the uptake of electric vehicles, the rapid deployment of infrastructure to assist in the charging of vehicles to make sure the physical ability to charge cars does not bottleneck its decarbonization efforts in its trent -- transport sector. haidi: always good to have you,

layered, -- leonard joining us on the ev anti-decarbonization standards for the country. you can hear more from the days big newsmakers and get analysis from the daybreak team there. broadcasting live from our studio in hong kong. you can listen and buy the app, radio plus at radio bloomberg.com. much more ahead. this is bloomberg. ♪

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shery: here is a quick check of the latest business flash headlines for blackstone's $70 million real estate trust for wealthy individuals has limited redemptions for six straight months. investors asked to redeem four and a half billion dollars in april from blackstone real estate income trust, the same amount shareholders saw in march. the trust are allowed $1.3 billion to be withdrawn, 29 percent of the amount requested. mgm resorts has reported first-quarter results that beat wall street forecasts. the largest operator of casinos on the las vegas strip credits growth in nevada and the rebound in macau earnings sword. of more than four times the tencent average of analyst estimates. it grew by more than one third to $3.7 billion, outperforming

projections. haidi: qantas has announced a successor to alan joyce when he stepped down in november. chief financial officer vanessa will take over as the first woman to lead. bloomberg's paul allen joins us for more. and we heard some speculation about this, this tightening perhaps coming as a little bit of a surprise. what do we know about vanessa hudson and how she will transfer those cfo skills into the top job? paul: she knows qantas inside out. she has been there for 28 years in various roles. she was chief customer officer for some time. she was vice president across the americas in new zealand for some time. she worked closely with alan joyce. she's made no secret of her desire to get the top job if it were offered. she had to go through a rigorous selection process but the

chairman says hudson has a deep understanding of the business, largely thanks to the share number of roles she is held in the length of time she is been there. a new cfo will be announced in the coming months as you say. this happened a little earlier than we thought. alan joyce was expected to hold on for a little while longer than he did but he will be stepping down in november and vanessa will take over. shery: stepping down after 15 years in charge. what legacy is alan joyce leaving? paul: never been a dull moment with alan joyce in charge. plenty of excitement, wild rides over there, 15 years. last year he had his house act by customers who were very upset at lost baggage, the way that they were navigating their way out of those post-pandemic settings. qantas suffered huge losses in the time that he's been in charge but also record profits as it has rebounded from difficult times. back in 2017, he was attacked by a protester on stage, having a

pie applied to his face over his support for same-sex marriage. and in 2011, his most controversial move of all, when he grounded the entire fleet to bring an end to the industrial dispute. so it has been an exciting 15 years for sure, but richard is saying much of the credit for a right future for qantas is thanks to alan joyce. haidi: paul allen in sydney. we have the market opens in sydney and tokyo next. this is bloomberg. ♪

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>> this is "daybreak: asia." treasury selloff across the curve today. wall street peering up for a 10th rate hike from the federal reserve's march of last year. today, the rba expected to go a different way. >> we are expecting that pause to hold as we get a little breathing space potentially for the reserve bank of australia on account of slightly softer inflation rates recently. and of course inflation and where central banks go from here remains the key pressure point for markets. >> that's right, we've got the opens of japan, korea and australia on us, some back online after public holidays. we will also watch the start of trading for cash treasuries, big moves in the prior session, these rising odds for another

fed rate hike baked in. the banking sector crisis looking fairly contained with jp morgan acquiring first republic and inflation still running hot with the latest numbers in the u.s. manufacturing sector. strong corporate debt issuance as well. the two year yield is playing out in the asian session in the fx space, we've got the yen at a two month low against the greenback or thereabouts. also we could expect further weakness ahead given speculation when we will see some policy adjustment from the boj. something that could weigh into that is the banks quarterly economic report. it said the boj is more confident about the pace of wage growth this year and that is likely to underpin private consumption. the nikkei to do five coming online a little higher this morning. let's switch to korea, economic indicators in focus. we had inflation data in the

last hour showing slowing for a third straight month. still up 3.7% on the year. but the figures could give the bok more flexibility, and something we could see a cut as early as this year. something else to focus in on in korea and other markets is reaction to the china labor day spending figures because those have risen and come in luck buster numbers. the question is whether the high consumption, the biggest chance for people to travel for the first time in three years, whether recovery is uneven. let's switch to australia, the asx 200 coming online, some stocks we will be watching at the open. qantas among them. we do understand alan joyce is stepping down as ceo and will be replaced by vanessa hudson, currently the cfo at the company for three decades. the first female cfo in the

company's history. sectors to watch, currencies, the 10 year yield, given we got the rba set to hold rates later this morning. shery: let's bring in our guest from jp morgan private bank to discover -- to discuss. we are expecting malaysia to also hold of this week but a different story when it comes to the fed or ecb or boe. how do you play this policy? >> i think heading into this year, one thing to note is developed markets led by the u.s. are in a different part of the cycle compared with markets in asia. in asia, we've been in a growth slowed down for quite some time. in the u.s., if you look at wage growth and consumer spending, if you look at even the housing market, it's looking like it's bottoming.

it is a more heated territory from an economic cycle perspective. that's one of the reasons why we've been reluctant to short the dollar across a range of currencies. basically since the fed started hiking rates. first of all, when the u.s. economy goes into a monetary policy induced slow down, that will probably mean the global economy will edge down as well. accidents can happen and that causes risk aversion on the part of investors, which strengthened the dollar. you have interest rate differentials, dollar is one of the highest loaded currencies at the moment. these of the reasons why the dollar has been quite strong. i think one of the things changing at the margin is maybe we are seeing the fed is closer to the end of the rate hike pico maybe in the next couple of months so we will see terminal

rates being reached and that could give a different environment. shery: on the others we have the japanese yen and enormous pressure given what the boj has not signaled they are doing anything. lows of 13791 at this point. where does the yen go from here when you are expecting the boj to not move for the next couple of months? julia: i think when you have policies like yield curve control, it's hard to suddenly move away from them. market implications can be quite big. i think they are taking the prudent approach to say we need a little longer to study how to adjust from these policies. while that happens, the slow exit in the backdrop, i think the dollar is key. the fed meeting in the next couple of days and how the market reacts to the fed tone. do we get a little bit of a hawkish surprise?

so many rate cuts are being priced and so soon and maybe that doesn't happen in the near term. we could have a little bit of a correction and the dollar could strengthen. that becomes another opportunity , that we've seen two times this year, an opening maybe to play the dollar tactically from the weak side. if the dollar rebounds a little bit next couple of days, we can have a window to play may be the yen on the stronger side and even the euro a little bit on the stronger side. it's moving from a strong dollar environment to one where we can potentially play a range bound dollar depending on how fate -- a fed rate cut expectations play out in the market. haidi: there are a lot of questions about china's economic s, property is still recovering

and the industrial manufacturing side. which way does it play out and how do you best to get exposure to the bullish parts? do you expect that next leg of the rally? julia: i think china's recovery -- in the sense that they are recovering as expected, so consumption rebounding for the may 1 holiday. you can see good spending is quite modest. probably some substitution going on where consumers are prioritizing service experiences, going on a holiday rather than spending on goods. the housing sector, it doesn't look like it is bottoming, but consumer confidence and business confidence is evident. given we don't expect a big

policy stimulus the next couple of orders really a very organic recovery and we would prefer to have exposure through some selective equities or fixed income where we know, for example, the service sector is an area we like and we think there's a little more room to run. but we would probably avoid the very cyclical parts of the economy where we think maybe the momentum is headed for a slowdown. on the export side, clearly the strength i don't think can be repeated of the march number. these are areas to avoid. haidi: what about allocation to tech? julia: we think in the asian space, valuations are undemanding. we think probably earnings have bottomed so we like it from a long-run perspective but we have to be mindful of the fact that when we have those high interest rates, global sentiment can be

quite sensitive to that. the external environment does matter when we think about investing in china or asia tech names. i think there could be an opportunity to pull back where we can buy those at more attractive values. haidi: julia, always great to have you with us. let's get you to vonnie quinn. vonnie: president biden has called top congressional leaders, calling them to a meeting to discuss the debt limit standoff. this came just hours after the treasury secretary warned the u.s. risks running out of cash as early as june. since her -- hitting the current limit in january, the treasury has been using special accounting maneuvers to stave off a possible default. sources say the white house is considering promoting the fed governor philip jefferson to vice chair, in addition to announcing a latin candidate.

this after pressure from senator robert menendez, calling for a latinx person to be appointed to the fed. made a protest in france saw a large turnout, fueled by anger over pension reforms. the government says more than 780,000 people took part in the nationwide protest. a labor union says the turnout may have totaled 2.3 million. police made at least 180 arrests and several officers were injured. emmanuel macron has push through with rising -- raising the retirement age to 64. president biden says any attack on the philippines would trigger american defense commitments spelled out in a decades-old defense treaty. he reaffirms ties between washington and manila following a meeting with the philippines president. the trip to the u.s. comes amid strange relations with china over the south china sea.

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn and this is bloomberg. shery: let's take a look at some of the movers in the early asian session. annabelle: we've got qantas coming online in the last couple of minutes or so this is australia's flagship carrier and the big news this morning is that the ceo is stepping down in november after 15 years. he will be succeeded by vanessa hudson, the current cfo, she's been with the company about three decades. in terms of the stock reaction this morning, want to sit little under pressure but still came on down around 1.3% so it has pared losses fractionally but very early for sydney. other markets coming online, japan and korea as well. we are still keeping an eye on travel stocks is the word this morning, given what we had with results overnight. norwegian cruise with strong

results. we did see u.s. airlines stocks outperforming the broader market on wall street on monday in the session so far, a little more mixed. shery: still ahead, netflix's head of content for asia joins us to talk about plans to spend billions of dollars in heads of getting a steady stream of hits from the region. next, we get the latest from j.p. morgan's takeover of first republic and what it means for the broader financial system. this is bloomberg. ♪

>> this is a case of a small handful of banks that were poorly managed. >> i think part one of the banking crisis is over. i think we have a second wave in commercial real estate. >> doesn't become systemic? does it bring down the system as we saw in 2008? i don't think so. >> it is in all of our interests to have a safe and sound, trustworthy banking sector. >> we are anticipating of a session at the back end of the year. >> i think we will see now a real slowing that begins to happen to aggregate demand. shery: our guests at the

milliken institute global conference reacting to the sale of first republic bank. let's take a deeper dive into the story because j.p. morgan acquired first republic bank, really making this bank even larger. this was a government led deal and it minimizes damage to the fdic guarantee fund. su, jp morgan, wanting to take the entire bank, the only one. su: by the end of the weekend, no bidder had stepped forward so there was a predawn announcement after the fbi see -- fdic seized the bank as a result. jp morgan arguably the biggest and strongest u.s. lender, taking over. jamie dimon saying with this acquisition, the banking crisis is over and everyone should take a breath. jp morgan rose even larger after

the deal. they pay about $10.6 billion to the fbi see on the deal and they expect a one-time game of 2.6 billion dollars and it is estimated just over $2 billion will be spent in restructuring costs. you're watching how the risks of first republic had played out and the actual deal, the $10.6 billion price reveals that about 10 million dollars of deposits walked away in the past 10 days, since the april 21 first rescue. therefore it was imminent, the bank collapse. jp morgan acquired $30 billion of securities, $92 billion in deposits and look at the way the stock shot up. a bank analyst says buying first republic jp morgan's best acquisition in decades. he says jp morgan could earn up

to a billion dollars in annual net income. meanwhile, and overhaul of the system being called for because of the failure of four regional banks. haidi: not everyone is cheering the rescue. su: right, there are some like our opinion, -- columnist, mohamed el-erian, who have questioned this. he said this benefits jp morgan and could haunt u.s. banks for years. he says what we have our u.s. government institutions caught up in the policy implications of a second-best world. that is the repeated inability to come up with an optimal solution. he goes on to say "what has emerged will come with collateral damage and unintended consequences." an eloquent way of saying there's got to be a better way. meanwhile you've got dick bove,

a bank analyst saying given the size and skills, jp morgan was the only and best choice to eliminate the problem called first republic. he says the bank made the acquisition on a base that seemed to offer a rich reward over an extended period of time. it does look like jp morgan comes out way ahead in tubingen at the last minute and there's a lot of debate as to whether this ends the banking turmoil. haidi: su keenan there. hours after jp morgan agreed to buy first republic, we spoke with a representative who said it is in everyone's interest to have a safe banking sector. >> we saw a large focus on a

small number of banks. there have been struggles and now we have seen a resolution of this particular chapter and i think that's great. >> maybe first republic, svb, signature bank, becomes a small footnote in history, not systemic and no contagion, but there is a concern about how this has affected lending standards, the appetite to lend and business activity overall for banks looking at regulators, looking at the potential there could be i guess much more of an umbrella over than when it comes to the regulatory environment. >> it is in all of our interests to have a safe and sound, trustworthy, reliable banking sector. it is important, it powers u.s. growth and gdp. it is to know one's benefit to have an unsafe sector. one of the things we've seen the past 15 years since the global financial crisis, is more liquidity, more capital in the

banking system, say banks, particularly the largest banks in the united states that allows us to help clients, whatever comes in the economic environment. i think that stability is something that is to all of our benefit. >> is the quiddity there now? not so much the money, but a willingness to move it around? >> there's a high velocity of money. one of our reports that leverages the breadth of our data assets and touch points in the financial system, we see people moving money around and that's why for us, having the bredth of eco-sick -- ecosystem where a client might want to put it in different money market funds or maybe repo with the fed or somebody else, it doesn't matter. touch that at each point of the transaction and help them wherever they may go. that is our focus, helping our

clients navigate. the world is a complex place. shery: our guest speaking with romaine bostick. in the u.s., -- australia, actually, faster than expected inflation deceleration, we will get to the u.s. because something opposite happened, that what happened in australia will allow the reserve bank of australia deposit its rate hiking for a second month. let's bring in kathleen hays. can the rba finally declare victory on prices? kathleen: i don't think they will go that far but certainly what they are signaling is inflation has proved enough that they can sit back -- they do meet every month until they get the review board decisions about spacing out meeting a little more, but i diverge, look at the chart, whether you look at the headline or more, it looks like in the latest quarter, it has

peaked. will it continue to come down? so far so good. that's why it is expected they will save they are stopping at 3.65. and that we think it is warranted to go meeting by meeting and watch the data and if the data continues to behave well, we can continue to hold off on hiking rates again. unemployment at 3.5%, a record low, the labor market looks good, another reason why phil wants to go slowly. wants to keep jobs growing. and he went through some rough public relations bumps at the end of last year coming into this year. people not understanding why he tightened he signaled he wouldn't, etc. now he seems to be in a relatively sweet spot for now. i think it is ported that the barbie index is looking better. food prices have been an issue. they've been up and they are

starting to ease. if you are going to have a barbecue, you are in better shape than a quarter ago. shery: i jumped the gun with the u.s., but i was really thinking about those inflation numbers before the manufacturing sector. kathleen: we have the manufacturing index, it's been around since 1948, a strong track record. it has been under 50 for the past six months. in the latest month, still under 50 at 47, but up a bit from 46 point eight and most of the components have improved, prices paid, gauge of what businesses have to pay to get the inputs into production. it had quite a jump, a four point jump up to 53.2. employment also rose above 50. it looks like that is strengthening at a time when we just had inflation readings from the u.s. last week that looked longer than the fed would like to see. the fed is expected broadly to do another 25 basis point hike and then probably signal a

pause. these numbers would probably tell jay powell and his colleagues that if you're going to put everything on the scale, you are better off, even with the banking turmoil, doing one more hike and signaling you are going to sit back, and the banqueting concerns is one of the big reasons you are expected to do that. shery: kathleen hays, our editor with the latest on the inflationary picture in australia and the u.s., as the bank of korea releases a statement saying uncertainty in the inflation path is because of high oil and utility prices as the pace of core cpi easing will be slower than headline cpi. we got the korea core cpi rising 4.6% year on year in april. this is bloomberg. ♪

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latest headlines. qantas airways has named its next ceo, the first women -- woman to leave the airline. she will take the job in november as the current ceo steps down after 15 years. morgan stanley preparing a fresh round of job cuts among the ongoing slump in wall street dealmaking. sources say the company is planning to eliminate 3000 jobs by the end of the quarter, about 5% of the staff. the banking and trading group is expected to bear the brunt of the layoffs. coming up, the asia-pacific region means netflix's biggest source of new customers. we speak with their vice president of content for aipac. this i when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block! hey, can you be less sister, more car? all right, let's get this over with.

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vonnie: the u.s. treasury boosting its borrowing estimate for the current quarter. it is an increase of more than 160% from the 278 billion dollars it had penciled in at the start of the year. it assumes congress will raise or suspend the federal debt limit and reflects the treasury's expectations of lower revenues and higher spending. lawyers for a tesla critic says elon musk has agreed to pay $10,000 to settle a defamation lawsuit. because those rocky production of its sedan was called out on twitter and then accused musk of smearing him. he says it achieves the goal of clearing his name. u.s. federal judge has ruled that a former goma sex banker can postpone his prison term i about three months. he was sentenced in march for his role in the global 1mdb fraud. he was set to begin his term in may but his lawyer asked for a

delay so he could spend time with his wife and daughter who traveled to new york from malaysia. the imf chief says china is shifting thinking about dissipating and debt restructuring after getting burned by creditors. she says china has joined traditional western lenders from the paris club in recognizing the need to create a better mechanism for debt overhauls. more than half of 70 low income nations are already in or near debt distress. >> we fortunately are seeing some shift in this thinking. why? a very simple reason i'm sure many of you will understand -- they are being burnt. nothing makes you more eager to understand that restructuring than when a country says sorry, i cannot pay you back. vonnie: global news powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: we have asia pmi breaking

across the region right now. the number for thailand at the moment rising to 60.4 from 53.1. this is a number for april, this would be the highest reading since the series began. we saw new orders rising against a prior month. really everybody else has seen pmi numbers deteriorating. south korea in contraction territory since july, taiwan also in contraction territory since june of last year, and the numbers seem to be easing. perhaps not surprising given global external demand has been weakening and we have manufacturing also pmi contracting unexpectedly in china. we continue to watch these factory numbers out of the region. haidi: that's right.

as you mentioned, we are due for official pmi from china, showing the contraction in april, the first decline we had seen since december. let's get more from our chief china markets correspondent in hong kong. this adds to the idea of a bifurcation when it comes to how this economic recovery is going. how are investors passing this? >> exactly, it shows the recovery in china has a lot to do with pent up demand and also the consumer story. does not forget that's where policymakers are focusing. growth needs to be consumer led, beijing has been saying that the past few months. the weakness in factory data shows china is vulnerable to weakening global demand. this is key because if beijing is to increase policy support, the question is how would it do this? it can't control external

demand. clearly it is a little bit of a problem because internally, domestic demand is strong, the travel numbers we had over the holiday period suggests that will continue to strengthen. the question is how will they deploy more support and stimulus when the problem is out of beijing's control? the pmi i think do in today's tends to focus on smaller firms rather than bigger firms, and smaller firms have been struggling, so that number will be keenly watched also because that's more relatable to domestic demand. really the question is how will beijing handle this when external demand is something that's not really within their control? shery: we heard from analysts saying investors are still very concerned about exposure to

chinese markets, which is why we are not seeing the boost in broader em because there's no clear signal coming from policymakers. it's really a mixed picture. what are analysts telling you, and traders, about how concerned they are about these signals from beijing? sofia: it is really a question of has beijing made that pro-business policy shift everyone was talking about when they reopened the economy? the mixed signals -- is reviving the private sector confidence really top of mind? when you see headlines around geopolitics as well, that's top of mind for investors as well. what is kind of happening right now the macro story, happening on the economy side, is not strong or clear enough like it was in december or january for investors to really go all in on the china reopening trade.

they are paring back some of those positions and at the same time, increasing concern on the geopolitical side, but also on the kind of what is beijing's plan for the private sector and the regulatory landscape for private business? the lack of clarity on both fronts means when traders talk to me they say we made that reopening play, it was obvious, we've done that, we are paring back our bets and we need more clarity on either of those fronts to have more conviction. shery: our correspondent joining us from hong kong. chinese markets still closed this week for golden week holidays, but how are we setting up in the rest of the region? annabelle: still very much focused on what is happening in china, given the stronger numbers. one economy that's very reliant on what happens in the strength of that country is korea.

you can see the korean won a little weaker this morning against the greenback but we got some numbers coming through, lines from the bank of korea in terms of the outlook for inflation. they are seeing the path remains very uncertain and that has given oil and utility prices. they also expect core cpi easing to be slower than the headline numbers. we saw headline growth and april, 3.7%, still the slowest paste since january of last year. the bok perhaps will have reason to start to pivot or change policy settings and some say we could see a cut as early as this year. what else we are watching, focus on the aussie dollar it is flat right now but could come under pressure if we see the rba keeping rates on hold in its decision later this morning. both look at equities, half an hour into the session for japan, korea and australia. so far the outlook is fairly mixed in this session. once talk particular we are

focusing on is qantas, under pressure today after it was announced that the ceo is stepping down after 15 years in the role. haidi: some big news. big changes at the top for qantas. something else we are watching is the way consumption trends are changing when it comes to streaming and television content. netflix announcing it will invest 2.5 billion dollars into korean content in the next four years. the asia-pacific region continues to be a huge source of new customers, 1.4 6 million added in the last quarter. let's discuss this with the vice president for aipac content for -- for netflix. great to have you. we know how much amanda there has been when it comes to asian homegrown content, particularly korean content. is this an enduring trend and how much further appetite you see there being for this sort of investment?

minyoung: i hope the abbasid for korean content continues to grow. we have identified from the beginning that korean content will be an important category for us and the region. what we see more recently through shows like the glory am a all of us are dead, there is growing demand across global audiences and we hope that continues. we do believe there are markets like japan, especially in japanese live-action, where we see great potential to appeal to our regional audiences if not global, and we have a great slate of japanese live coming out this year, starting with the show sanctuary in the next few days, premiering may 4. haidi: how much of this is also good risk management? we are seeing the potential risk, hollywood studios and

writers potentially calling a stoppage on work this week if talk some progress. is it important for netflix to have access to other content from the rest of the world? minyoung: we make shows in many different countries all over the world, not only the u.s. or asia, but europe, africa, latin america. so we do have a variety of stories we are ready to deliver to our audiences around the world. so hopefully even during that hearing, we can deliver a high-quality story to please our members around the world. shery: how well is aipac content doing in terms of product little -- global viewership in the market you mentioned? minyoung: our focus really is the local impact. to make sure that when we make shows in korea and japan, we put our local audience, as in korean

audience for korean content, japanese audience for japanese content, and thai audience for thai content, that they are a priority and global travel ability is a bonus. but we strongly believe that any story authentic to local culture has a high potential to travel beyond its home country to the region if not the global audience as well. shery: when it comes to the different formats of that content, how well is unscripted content doing right now? minyoung: we just started getting into unscripted territory in asia and we have seen a lot of success. for example, korea, physical 100, born in korea, a story told by korean storytellers, has been pleasing our members all over the world. we've also seen great feedback

from singles as well. japanese unscripted has a long history and a loved format by our japanese audience and we will continue to develop shows in japan with shows like love village and a lot of different types of comedy and variety shows as well. it all boils down to providing diverse storytelling and even more options for our members to be entertained and provide joy. haidi: what about live-streaming ambitions? we know the last quarter there were some challenges but will that be a major area of expansion in the asia-pacific as well? minyoung: we are pretty much in the early stages when it comes to live-streaming and we unfortunately had to disappoint some members through previous

incidents, but the good news was our audiences who watched that show really loved it. as a content executive, we have great experts in netflix that will continue to improve and develop our live-streaming technology. as a content executive i'm looking forward to finding the right creative where we can utilize the live-streaming to bring even more choices and joy to members, and be able to interact with our audiences live as well. shery: the vice president for content for aipac at netflix, thank you for being with us. next, look at the potential for a share buyback for hsbc had a first corner -- quarter earnings announcement. this is bloomberg. ♪

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shery: -- topped estimates powered by lending games -- gains that eclipsed income. for more, let's bring in joyce. really seeing the gains from higher interest rates. joyce: that is correct. a great run for dbs.

the lending gains have surged over a collapse -- over debts, particular wealth management. looking ahead, it has been flagged that might moderate slightly. not for investors to get their hopes up too much. the net interest in the margins, the main gauge of lending profitability, it seemed to decline slightly this year. and he's also tailwinds from wealth management and investment fees is expected to pick up. we are also still waiting for any regulatory punishment from the digital banking disruptions dbs suffered this year so we will be watching out for those. haidi: put the prophet amount get harder from here in terms of domestic lending? joyce: yes, according to the

ceo, he is expected -- he is seeing the net interest margins might decline gradually from a peak this year, so own growth is expected to come into about 3% 5% but the margins might be compressed a little. haidi: joyce with the latest on the dbs numbers. hsbc reporting first-quarter results on tuesday. bloomberg intelligence says it expects the bank to stick to conservative guidance. our senior analyst joins us. what are you looking for in these numbers, particularly when it comes to earnings drivers? francis: we expect hsbc to edge of higher, although the major margins in the first quarter be

flat or slightly weaker than the previous order, the fourth quarter. margin is one of the key drivers. another key area we are looking at would be about the effort to contain cost growth. the earlier guidance was free percent year on year basis this year and those are the two key areas on the operations front. shery: what are you watching in terms of exposure to the commercial real estate in china, which is still a thorny issue? francis: yeah, hsbc may still have about 16 to 17 billion u.s. dollars of those mainland chinese exposures, however, if we take reference to what happened last week, the first quarter results, they are already reporting a potential reversal for that exposure in the country and hopefully we are expecting the same for hsbc,

easing pressure from that exposure. on the other hand, the world is focusing on commercial real estate around the world. so far, as we been into the 2022 nevers from hsbc, we don't see any red flags. haidi: what about the investor proposal when it comes to the split? francis: that one has been debated the last six to eight months. we have done a round of analysis on the potential upside to hsbc variation in the case of breakup. in august, we expect a 20 to 30 billion variation upside. the past analysis based on earnings.

if you look at what happened to the hsbc market cap, the upside has been reflected in the market cap. now the bank is trading at about 115 billion u.s. dollars. we are not sure how that proposal will be very positive. shery: francis chan with what to expect from hsbc earnings. we will be able to delve into those numbers. don't miss an exclusive conversation with the hsbc ceo coming up right after the bank reports. we will break down the results and dig into investors been off proposals. this is bloomberg. ♪

shery: bitcoin rising at the moment but still holding below the $30,000 mark. traders awaiting further catalyst including perhaps clarity around adulation while the u.s. is applying pressure on the crypto sector. elsewhere, a little more friendly. in hong kong, officials encouraging major banks to lend to the sector and interest from institutional investors rising. annabelle droulers spoke to a

major crypto vc fund in the city about the opportunities. take a listen. annabelle: what made you choose hong kong to establish this? >> hong kong has always been the financial capital of asia and we believe in this location. we have a strong investor base out of hong kong. annabelle: cmcc global is launching a $100 million fund fully -- solely faced on -- focused on blockchain opportunities. >> these are the verticals that are driving digital assets base forward and are probably the most innovative areas in the space. annabelle: i big question facing the vc sector for crypto's is whether the worst is over. >> we started off very small

every first fund started with only one million u.s. dollars. for us, investment returns are more important than size. a $300 million fund would potentially be too large. annabelle: the fund has a global mandate but says investor focus is shifting to asia and away from north america. >> the u.s. has been quite negative from the regulatory perspective and it seems to us the u.s. is shooting themselves in the foot with a machine gun, and that gives a golden opportunity to other regions of the world to put themselves forward and try to attract some of the most innovative companies. >> a third of all blockchain equity deals is coming out of asia. this is something that investors have on their radar. annabelle: as for the price of bitcoin, they say double-digit

gains are well within reach, even as there is debate as to whether we see the end of the crypto winter. >> i could see is hitting 40 k this year for sure. generally i think longer-term. in the short-term there will be volatility. i can see us easily breaking $100,000. haidi: cmcc speaking to annabelle a little earlier. let's look at markets. a lot of these markets, reopening after the long weekend. this is a mixed picture as we get into rba decision day and a slew of other central bank decisions for the rest of the week. this is bloomberg. ♪

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