>> a very good morning. welcome to daybreak australia. >> we're counting down to asia's major market opens. >> good evening from new york i am shery ahn. the top stories this hour. tech stocks drive gains in the u.s. sessions with a frenzy over ai outweighing broader market concerns over a u.s. default. >> a key republican lawmakers says differences in the debt limit are narrowing negotiators have yet to reach a deal. the u.s. is on borrowed time as the treasuries cash down below $50 billion. shery: economists surveyed by bloomberg expect china's central bank to cut the rrr sooner than expected. gdp forecast for china edge lower. u.s. futures muted at the open and the asian session after the s&p 500 gained ground. it was about the nasdaq 100,

soaring more than 2.5%. leadinge exuberance over ai revenue. even in after hours trading, you can see a chipmaker, is looking forward to ai revenue, soaring. you can see the gains in late trading past 17%. we had positive echo data. we first quarter gpd higher. not to mention the jobless claims came in lower than expected. that sends treasury yields higher across the board. we had a bit more optimism over a debt deal, perhaps house vote on tuesday. we're seeing oil prices rebounding slightly in asian session, after we saw it dampen, because russia downplayed the likelihood of production cuts next week. haidi: we do have breaking news when it comes to new zealand. a consumer confidence numbers crossing the bloomberg, a mixed picture.

a bit of an improvement. the override -- overall headline number, that index is 79.2, a downside from the month of april. the month on month decline is 0.1%, really flowing from the pace of slowdowns we saw from the previous two months. we're seeing an improvement when it comes to cages of finely financed, com to aear ago. a a your head, it is still a bit softer. the miss when it comes to retail sales, when we have seen retail spending in the first quarter has been bloomberg economics suggesting the new zealand economy could be in recession. we had this week, the move from the rb and z as a turning point, potentially staying on hold. let's look at how we are setting up for this friday mark get session -- market session. annabelle: something the rnx is

going to look at closely, the numbers, only 5% and new zealand are expected to be better off at this point next year. it tells us these effects from tightening still have a ways to play out. we had the 25 basis point hike this week, the rnz signaling it is at the end of its tiny regime. market say it will not last long because they will need to start cutting at some point this year to try to deal with the economic fallout. in terms of the market reaction, the kiwi dollars flat. new zealand stocks are on the downside. across the equities picture, it is looking ahead to a mixed trading. on the one hand, we have these data sets coming out, earnings from the likes of nvidia, you mentioned marvell technology, that is a good news. on the bad news, we have the debt talks extending, and what is happening with the fed. we have traders, fully pricing in a 25 basis point hike,

between the next two meetings, in terms of the market reaction. in this part of the world, we are tracking what we have in the japanese yen, we are at the 140 level. jeffries saying we can get to 143. the broad read through from investors is that this is really a dollar story. it's the yield differential between the fed and the boj in focus. shery: the longest winning streak since october for the greenback. here to discuss our top stories is our bloomberg policy editor, kathleen hays. let me start with you, with eco-data we had today. i mentioned how the first quarter gdp numbers were revised higher. there seems to be contradiction within the numbers. there is gdp versus gdi, gross domestic income. what do we know? tom: you put it nicely. there is a contradiction in the numbers. the first course gdp numbers were revised up, pointing to

continued growth in the u.s. economy. the u.s. gross domestic income numbers, which conceptually should match with the gdp, pointed to a contraction. what's the signal we should take? frankly, it is hard to take to clear her signals from numbers pointing in different directions. if anything, my feeling is that it indicates this is a movement of heightened uncertainty for the u.s. economy, perhaps, there is more weakness than the headline gdp growth numbers indicating. bloomberg economics is sticking with our call, the 500 basis points of fed tightening is set to tip the u.s. economy into a shallow recession in the second half of the year. haidi: you are seeing this when it comes to markets, traders are pricing in more tightening from the fed. what are we hearing from fed speakers? kathleen: even traders are

uncertain. they know there will be a rate hike. they don't know if it is june, july, they think that is the direction they are heading. supporting that view was not the governor -- the president of the boston fed, susan collins. she's looking at the fact that inflation, yes, is still too high, but she sees it is moderating. she seems to be opening the door to a pause. >> while inflation is still too high, there are some promising signs of moderation. i believe that we may be at or near the point where monetary policy can pause raising interest rates. this will provide an opportunity to more fully assess the impact of the actions we have taken kathleen: this, and the release of the pce later, this is the key inflation gauge for the fed. not only are prices still above

the fed's target, but in this release, there are supposed to be -- they are supposed to be flat. you will not see the improvement in the pci. the core is seeing steady year-over-year 6.6%. a super court unchanged. the headline deflator is rising to 4.3%. we heard from tom barkan today, he was quoted on his comments about the economy, particularly the labor market. he says it is still "quite tight", if you look at the demand for skilled trade workers it is crazy hot. bloomberg economics is projecting that the pace of hiring, the next jobs report, is going to still be too high for the fed. it's going to be around 185,000, down to 253,000 the previous month. as bloomberg economics points out, that points to a relatively strong labor market, not pulling off enough to get more room for

inflation to come down. shery: it is about the labor market. especially when it comes to wages in japan. it seems the bank of japan sending a slightly different message, with a new governor, when it comes to wage gains. kathleen: anything he says right now, we are going to amplify 100%. everyone is trying to figure out where he stands on what it is going to take for the bank of japan to finally say, it is ready to start moving away for -- from extraordinary angst did -- extraordinary stimulus. his first interview, he said they are not targeting legions, which some people thought they may be. let's listen to what he said. >> on our wages, it may lead to policy change. we are targeting wage growth itself. if we have sustainable and stable inflation of 2%, it is

natural that wages should also rise. the key point for our policy decision is whether inflation will rise in a sustainable manner at 2%. kathleen: sustainable inflation, unstable inflation at 2%, that is the key. there has been focus coming in to this whole question. certainly one governor kuroda was stepping down, ueda taking over in april, about the spring wage negotiations being the best in decades, this is another reason people thought they would open the door to the big shift. of course, there are some economists saying they will have to wait until the spring of 2024 to be sure wages continue to rise next year before they move. the fact that he has untied them to a certain extent. a certain level of wages is not a precondition for policy change and they're not defining stable

inflation to particular levels. he says that they are not even saying that inflation has to be specifically at 2%. he's saying it is more important to judge sustainable and unstable than small differences in decimal points at 2%. what the chart shows you is that inflation is high on any of the levels, key indicators you're looking at. maybe the case is building but that is the latest from the new boj governor. haidi: the case is also building for more easing. it feels like a couple of months ago we were seeing economists scrambling to upgrade their forecasts. now they are raining in those expectations. tom: that is right. if we roll the clock back to january, february, march, there was excitement about the chinese economy. china had exited from covid zero restrictions sooner than people expected. the chinese economy was bouncing back quicker than people expected.

you fast-forward to where we are now, a lot of that excitement has faded away. yes, the april activity data shows year on your growth continuing. but remember, that is your on your growth relative to a very weak base. april 2022 was when shanghai went back into lockdown. if you look at the sequential numbers, actually, china's growth shows sign of having slowed sharply, heading into the second quarter. we expect her mining data on the days ahead to confirm that picture. markets are reacting. the commodity markets, which rely on chinese demand, some of the consumer brands, which aim to sell to the chinese consumer. the chinese stock market all suffering, as hopes for that, very very strong chinese recovery taking a bit of a step back. shery: given those risks, could we see more action coming from authorities to support the chinese economy?

if we see any monetary policy easing, what would the diversions with other central banks like the federal reserve mean for the chinese economy? tom: so far, we have seen the people's bank of china adopt pretty cautious approaches. our view is perhaps they should have moved already to provide a bit more support, cutting that medium turn lending facility which anchors bank lending rates in china, cutting the reserve requirement ratio. those moves would not give a huge impetus the chinese growth in themselves. by signaling the policy was a shifting into stimulus mode, they provide a boost of confidence, and perhaps a signal that more support was on the way. that has not come yet. as evidence of a slumping recovery continues to mend, we think it will not be long before the pboc moves into action,

moving that rate down, cutting the reserve ratio to free up more funds for banks to lend. haidi: bloomberg chief economist tom orlik, along with our policy editor, kathleen hays. let's get caught up with the first word headlines. su: the concerns intensify in the u.s. as the treasuries cash balance drops to its lowest since 2020 one. it fell below $50 billion on wednesday. this is the debt ceiling standoff continues. the treasuries bank account has been under downward pressure recently as government implements measures to avoid breaching the $31 trillion debt cap. now, according to one gop negotiator, republicans and the white house are narrowing their differences, but still have not reached a deal. in the case of an agreement, tuesday is the likely day for a house vote.

the senate would have to vote quickly, before the june 1 decline. >> we need to have an agreement that is worthy of the american public. the reason why we are here, we have more money than any time coming into our government. when the democrats took the majority, they are now spending more than any time in our history. our debt is higher than any time in history. let's get this right. su: that is a june 1 deadline. to turkey where the turkish central bank has kept its benchmark rate, at hold in a bid to stabilize the currency. it's trading your record low ahead of a runoff election on sunday. the president has a chance to extend his two decade rule, leading the first round of voting this month. his champion is keeping borrowing costs low even in the face of inflation. jp morgan has notified a thousand first republic bank employees that they are not being given jobs following its takeover of the failed lender.

a source told bloomberg that the bank offered full-time or transitional roles to almost 85% of the 7000 employees still working at first republic, when it collapsed. those not offer jobs will receive pay and benefits, coming in 60 days. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm su keenan. this is bloomberg. haidi: steelhead, china's economic rebound, as we were discussing, his question commodity prices. coronado global resources ceo, douglas thompson joins us, for a look at coal demand. this is bloomberg. ♪

shery: cash parked at money market funds reached a new record, with the largest inflows in three weeks, amid uncertainty around ongoing u.s. debt ceiling negotiations. our next guest says we are seeing a huge move to cash, given recession concerns, but the consumer is very strong. let's discuss with innovator head of research and investment strategy, tim urbanowicz. good to have you with us. when you're looking at people moving to defensive assets, what you tell them in this risk off environment?

tim: clearly, uncertainty is the name of the game right now. really in conversations where having with clients, our focus is on being risk aware, but not risk off. if you look at the move we saw in nvidia today, you can't be out of the markets. if you look at some of the other trends we are seeing in the etf industry right now, oe of the biggest will -- one of the biggest ones we are seeing is this gravitation towards defined outcome etf's. this is a category that pre-innovator did not exist. you look at the flows to defined etf's today, they are accounting for 2.5% to 3% of total flows into the u.s. etf market. a big chunk of that is investors trying to make sure they are maintaining exposure to the equity market. not being out, but making sure that there -- they are risk aware. within that category, one of the biggest gainers has been a

buffer, etf suite, tickers like p apr, where investors have a 15% buffer against downside losses over a 12 month outcome period, with upside exposure to the s&p 500 etf, up to about a 15% cap. yes, there is the move to cash. but we are seeing investors that want to stay invested with a buffer. shery: the idea is that we will eventually get to a deal, sooner or later. it looks like perhaps a house bill could come on tuesday. are we -- what sort of implications do we have for the markets, even if we get to a deal? tim: you look at it, the reality it is, we'll probably get a deal. the longer we go without a deal, the higher equity volatility is likely to go, the higher bond volatility is likely to go. that is exactly what we saw in 2011, back in 2013. we would not expect this to be

any different. taking a step back, even if we do get a deal done like we expect, that does not mean that we just escaped without any consequences altogether. what does this scare due to investor confidence in future u.s. debt payments? you look at the level of debt. it is growing at an a nest -- unsustainable rate, what does this do to investor confidence and foreign investor confidence? where we are at today, as a percentage of total u.s. debt owned, foreigners account for, his drop-down to its lowest level over the last 19 years. that is a big difference. if we go on a trajectory, the question becomes who picks up the slack and what rate investors will require to pick the slot -- slack up. even if we get a deal done it does not mean we will not have longer-term consequences. haidi: that has to be one of the reasons we are seeing the shift

out of volumes in the u.s. and to markets like japan. tim: we are seeing a big shift. you look at the etf market again, flows into international etf's have been strong. the buffer trend we saw is prevalent with strategies and international markets as well. high apr, one of the tickers we are seeing a huge amount of interest. but we are starting to see these trends shift. you look at europe, some of the earning trends we have seen player out those are striding -- starting to shift. we are seeing investors wanting exposure. again, they are being cautious. getting in, but doing so with some downside protection in place. shery: the other markets outside of the u.s., that you find attractive, or have seen these huge inflows? tim: you are seeing it on the shorter end of the curve.

we're singh interesting trends in the treasury market. further out on the curve, you are still seeing some hesitancy. investors are concerned. is the fed done? are they going to hike a bit more? is inflation going to continue to take down at the rate it is going at. flows are on the shorter end of the curve. we are seeing interest in emerging markets, particularly china. it is a lot of cautious optimism out there. haidi: what about the direction of the dollar? how does that factor into your assumptions? that is one of the biggest vulnerabilities, when you have something like the news flow from fitch yesterday? tim: exactly right. it goes back to what we were talking about on the debt ceiling, and what is confidence looking like in the u.s. and their ability to make future debt payments? that will have implications to rates, on the dollar as well.

ultimately, those trends take a lot longer than most expected play out. it's something we want to be paying attention to longer-term. haidi: innovator etf head tim urbanowicz. you can get around above the stories in today's edition of daybreak. terminal subscribers can go to day be . you can get -- you can customize the settings. this is bloomberg. ♪

haidi: a quick check of the business flash headlines. may tuan's quarter revenue jumped, driven by higher spending on meals and travel. the core commerce business doubled booked during the new learner -- lunar new year holiday.

sales rose to a $.3 billion above analyst estimates. alibaba says plans to hire 50,000 people, pushing back on reports that the firm is laying off employees. the e-commerce giant characterize reports as rumors and says employee departures are part of the normal flow. alibaba pointed to its recruiting system that the company is still hiring. coming up next, how china's economic rebound is affecting commodities. we are joined by coronado global resources's new ceo douglas thompson. this is bloomberg. ♪ bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright.

xfinity rewards creates experiences big and small, and once-in-a-lifetime. 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. switch to xfinity mobile and get the best price for 2 lines of unlimited. just $30 a line per month. i should get paid more for this. you get paid when you win. from xfinity. home of the 10g network.

shery: jp morgan notified 1001st

republic bank employees that they were not given jobs following its takeover of the failed lender. a source told bloomberg the bank offered full-time were transitional rules to 85% of first republic bank employees. let's bring in our finance editor for more details. were we expecting this job loss at first republic? what what the new organization look like? >> yeah, there was thought that they were not going to keep their jobs even when first republic was taken over by jp morgan, they were talking about cutting 25% of their staff. it's a smaller number, about 15%. so, there was expectation, that they would not keep their jobs. jp morgan promised employees they would know within 30 days if they needed to look for new job or not. haidi: is this the beginning

when we look at broader consolidation, given all of the uncertainty and the restructuring taking place across the sector over the past couple of months? >> sure. even within first republic, 85% of people are keeping their jobs for the moment. not everyone will be kept on permanently. there is a standard -- some people are getting three month contracts, six months, nine months, after that they may be gone too. we don't know the exact breakdown of the 85%. but presumably there will be more to come. now, you have to keep in mind, the purchase only happened in early may, we are not even a few weeks in. i am sure jp morgan is figuring out who to keep, who to cut, where people fit in the organization. shery: especially the people making eye watering numbers in terms of pay packages. >> right. we reported that dozens of people were making $10 million

more at first republic, which is not a huge shock given the clients first republic had, very wealthy people they were managing money for. it's not a huge shock. one of those people were making $35 million a year, which is more than even jamie dimon at jp morgan did last year. there are probably people who can save money, we don't know who among the group is being cut, and who is staying on. shery: it makes you pay more attention, given it is a field lender. you're talking about this high number. our finance editor, thank you so much for that. let's get to the first word news. su: bloomberg has learned ubs' takeover of credit suisse may take a longer time to finalize. the deal's completion could be pushed back to june, instead of late may, as ubs and the government haggle over terms of a state guarantee. th swiss governmente broke with the $3 billion takeover deal,

over the collapse of credit suisse. bank of japan, ueda says the boj's balance sheet is not in a normal state given the bank's large holdings in government bonds and etf's. ueda has played down the importance of wages as a trigger for change. this suggests his desire to hold onto policy flexibility, leaving speculators guessing about the timing of policy shifts. >> on our wages, it may lead to policy change. we are not targeting wage growth itself. if we have sustainable stable inflation of 2%, it is natural that wages should rise. a key point for our policy decision is whether inflation will rise in a sustainable manner at 2%. su: to copper. the billionaire mining investor, freed land said that tom burrell in copper prices -- tumble in

copper prices is temporary. it comes after china's economic activity disappointed expectations. the founder of ivanhoe mines says he plans to stimulate china's economic status. he is very bullish on demand. >> mines take 10 or 15 years to rebuild. it's not supply you can turn on. we're seeing relatively low price recovery, simply because we are breaking down the world economy. we see a situation where we have a crisis of supply, not of demand, we are suppressing demand by raising interest rates. long-term supply is definitely constrained. su: global news powered by more than 2700 journalists and analysts --global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. . this is bloomberg. haidi: more to come. this is bloomberg. ♪

the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

haidi: bloomberg's economics anticipates modest global growth for the second half of 2023. the u.s. debt ceiling fears impending slowdown and the disappointed recovery in china. oppression commodity price, across industrial complex. our guest is the ceo of one of the world prop producers of coal on friday, douglas thompson, he

joins us now. you join in this role at a period of high uncertainty for the global economy. how is this feeding through your outlook, especially as coal is crucial and is still making process, and we have been looking at the apache recovery in china? >> thank you for the opportunity. yes, it's interesting times in the market. you are seeing headwinds in china. we're seeing the market, what is happening in the u.s. at the moment. then also, in the last week or so, thermal has taken a toll, putting a drag on stocks that are in coal. our outlook, is still positive. the reason for that is as you said, caol is critical -- coal is critical. it is the fundamental.

input to producing steel. . there is a structural imbalance in supply and demand, you can see demand will outstrip supply. that's going to support us in the long-term. we are bullish in the long term. it's cyclical. in the next quarter we will see a down cycle of what you mentioned, in china and also with indy at the moment. the monsoon season, not taking much product. we expect pricing to come back a bit. shery: aside from cyclical factors that we talked about, there is a longer-term energy transition issue. you are still bidding on two of bhp's coal mines, is this a good time to be buying the assets given the future uncertainty? >> for us, we don't see the uncertainty, our product is used to make steel. steel is an integral part to the

transition that is being dreamed about and the world is aspiring towards. we've seen the pace at which it has been proposed, exacerbating that supply. that should create more buoyancy for coal pricing in the future. there is confusion between the two materials, one being coal for energy, and one being steel. there are different materials in different uses. the market will understand and see the long-term future in that coal, versus thermal. bhp, they are good assets, we are interested in them. but we are in a crisis at the moment. it would not be prudent to, too much. shery: what about green steel

technologies, like hydrogen? are you seeing the arguments for sticking to traditional dirty based steel? >> there is definitely a long-term future for steel manufacture. the reason for that is yes, the technology is there for hydrogen-based manufacturing. there's a couple of issues. first is the scalability and economics. i think that problem can be solved. it's going to take a lot of money and a period of time. the other various of intrigue, steel by 202050 is being forecasted to be 2.2 billion, more than a 20% increase in what is being produced at the moment. a large majority comes from traditional minefields. i would argue that the quality

of coal that businesses -- it's pollutants are much higher energies. i carbonts -- it's carbon content is. betterwe should be targeting the higher quality products. shery: given your expectation that even this would take a long time, and we are seeing big producers like bhp, we're getting out of that market, do you oversee supply of medical going forward? >> we definitely do. there is a structural in the market in the regional term. that comes from underinvestment. there is uncertainty within the markets. haidi: we have seen the chinese market reopened to australia. the ties are improving. are you shipping that the china?

>> we have traditionally shipped to the u.s. and china. we have a geographic advantage. we woul hav -- we would have been able to trade from australia. that is a strategic advancement. we have not so much product into china. inquiries have started to flow. we have not shipped from australia to china yet. only from our united states operations. haidi: we really appreciate your time. douglas thompson coronado global resources ceo. the management founder and ceo, who is been predicting through the pain and the u.s. office market is taking a different view towards data centers. his remarks come after chipmaker nvidia surprised analyst after surgeon forecast, the jump in stocks due to ai. >> the one thing i see from the macro perspective is everyone thinks commercial real estate is

in the tank. it is really focused on the office market. when you look at the data center market, it's white-hot. people that are developing data centers don't get them developed, before one of the things lisa's it for 30 years -- fangs leases it for 30 years. shery: that was calabasas speaking. let's stick with his view on nvidia, what he calls white-hot. not all investors have been so positive on the stock. annabelle joins us for morning calls. caffe missing out on the recent rally. annabelle: this is one of the most read stories on the terminal. essentially, cathay woods flagship, dumped all of their holdings and closed out the position in nvidia at the end of january. you can imagine how the team is feeling on missing out on the rally. this has been a $560 billion.

the stock has surged more than 50%. this circle in red pointing out that was when they closed out their position around the end of january. since then you have seen the moves. nvidia is spiking, that has been the performance of the flagship etf. a lot of different views coming in on this, it is not all bad news, that is what our bloomberg intelligence team has highlighted, given if you take a look at what we heard, essentially cathie was into the stock, as our team said, before it was cool. they have made a lot of money out of the company so far. it's just that they essentially missed out on this most recent rally. haidi: intel is another name missing the retail -- ai rally. annabelle: this chart looks at the big moves we had in the philadelphia semiconductor index on thursday.

that was in spite of 7%. this is what came in for the intel stock. that one slumped around 5.5% at last close. you can see at the bottom of the screen. whats driving these moves is concerns that there are a lot of budgetary changes coming for intel and also companies and how they are putting their money into this new technology that is prompting this budget shifts -- these budget shifts. the main thing is from -- they say -- from wedbush, they say the results are mixed. it comes down to the core advantages. given nvidia controls about 80% of the market for chips, it seems that intel has catching up to do. haidi: annabelle with a look at some of these ai related stocks. we've seen such a big boost. speaking of rallies, turning to casinos, an operator in las

vegas sands opened a new operator in china, called the londoneer macau. stephen engle caught up with the ceo. and a special guest. i was pretty excited to see the video from the red carpet last night. >> roll the video. it's always better than seeing me standing in front of the londoner casino, the new one from las vegass ands. david beckham was here. he was all over the place. he played to the fans and signed a lot of autographs in the red carpet just behind me. this is las vegas sands, doubling down if you want to use betting analogy, at macau. it has been a really tough three years, for the whole world, through the pandemic. but this place shut down. they're feeling the aftereffects of that. the manpower shortage. there were no gamers coming here from across the border or around the region. gross gaming revenue has only

recovered to half of what it was in pre-pandemic in 2019. they all just got the license -- the six license owners got renewed in january. it is a reset not only for las vegas sands. this used to be called the sands coat tied central, not very well branded. it underperformed. during the pandemic, las vegas sands and sands china used the downtime to completely rebrand this property to the londoner. david beckham was part of the design process. we're going to talk to david beckham in a bit. you have to stay tuned for that. let's talk to the coo of sands china. here's our conversation. >> we have always been anchored around the mass-market. so, if you look at the mass-market recovery, i think in the first quarter, the whole market is back to two thirds of what was pre-pandemic. but, hopefully, as the recovery

continues, we're going to be able to reach pre-covid and perhaps higher over the course of time. i see no reason with this huge critical mass of world-class resorts, as i said, an unmatched cluster of quality and scale, and also with the desire for people to come, not just from greater china but the other important point is macau is poised to absorb and -- attract regional tourist from north asia, southeast asia. >> what is your international strategy? how important would thailand be if they liberalized their sense -- sensitive gaming laws? >> we are anchored in macau. we concentrate in macau. that is our future. in terms of our parent company, las vegas sands, they have said

we are going to concentrate on reinvesting torquay markets, namely -- to our key markets. >> we have been shut down for a long time, it has been pretty painful for you guys. >> the manpower shortage has works its way through the system, with the help of government, we have been able to import more foreigner workers. our hospitality staffing shortage will be over by the summer. as we talked about, in the first quarter, we were only operating less than 70% of our hotel inventory. we think that in the second quarter, we will be back, closer to 90% of where we had the inventory. >> that comes back to the sustainability question. how long can you keep at 90% or 70% at a time when the chinese recovery has been slower than many people anticipated, especially the consumption power?

>> in the first quarter, we were constrained by the lack of room inventory. demand exceeded supply. and that acted as a constrained on the pace of recovery. had the the whole city been fully manned, no labor shortage, we would have been able to receive a lot more visitors. in the second quarter, hopefully that summer peak season, travel season we will be able to accommodate a lot more visitors as a company but also as a city. >> with the new license renewals, you have to spend more on non-gaming. is that attracting families more conventions, both. what is going to be a differentiator? >> both. our biggest differentiator is the business tourism. we have been the leader, not just in macau but globally in

asia. on the ledger side we are going to be attracting a younger lifestyle consumer, through these non-gaming investments. you are right, we are committed to spend 30 billion more around 3.8 billion u.s. dollars over the next 10 years, predominantly to boost the non-gaming amenities and products for our portfolio, but also to track -- attract more international visitors to macau. >> we used a lot of gaming jargon. mice is meetings and conventions, excavations. that is what sands. china does well they have a property in singapore. thailand might open up or pass a gaming long. japan is going to have a casino in osaka. we will hear more about that coming up in the next hour. we will talk to the las vegas sands chairman, rob goldstein,

with his special guest, is global abbasid or, david beckham -- his global investor, david beckham. shery: that was chief north asian correspondent, stephen engle joining us. be sure to tune into bloomberg radio to hear more from the big news day makers, from our studio in hong kong. listen to the app on radio plus or bloomberg radio. plenty more ahead. ♪

did you know you can get someone to shop for you? stitch fix really gets me and what i need. even better? they save me a trip to the mall. it's easy: i share my style, size and budget. and they do the shopping for me. stitch fix sends me things that fit and make me feel like a more stylish version of myself. i keep what works, and send back the rest. no subscription required. no commitment. just my style. stitch fix.

haidi: a quick check of the business flash headlines. jp morgan is developing a chatgpt software like service to help customers. the bank is applying a product called -- a cloud computing software using ai, to elect securities tailored to consumer needs. an australian bus company is considering a possible sale. the mobile based firm has held discussions with financial advisors about a deal. the sale could value the company into the hundreds of millions australian dollars. deliberations are in the early stage. the chinese city has been drawing up plans to take over the biggest share holder of a

brilliance china take over. its in talks to acquire the auto group for $2.3 billion. brilliance is undergoing restructuring. its creditors are set to vote on the proposal as soon next week. all that is it for daybreak australia, as we get into the final friday of trading session of the week. we're hearing continued progress, but no debt deal yet. we're looking at a rally to follow in asia, as the u.s. jobs gained despite the that talks. in focusthe ai and chip related move expected to be the theme for the next session. daybreak: asia is next. ♪